10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from    to

Commission file number 001-36599

MB FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Maryland	36-4460265
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
800 West Madison Street, Chicago, Illinois	60607
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (888) 422-6562

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes xNoo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YesxNoo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filerx	Accelerated filero
Non-accelerated filero (Do not check if a smaller reporting company)	Smaller reporting companyo
	Emerging growth companyo

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YesoNox

There were issued and outstanding 84,200,745 shares of the Registrant’s common stock as of August 8, 2018.

MB FINANCIAL, INC.

FORM 10-Q

June 30, 2018

INDEX

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Changes in Stockholders’ Equity	5
	Consolidated Statements of Cash Flows	6
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	76
Item 4.	Controls and Procedures	78
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	79
Item 1A.	Risk Factors	79
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 6.	Exhibits	81
	Signatures	88

i

PART I.        FINANCIAL INFORMATION

Item 1.   Financial Statements

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

	(Unaudited)
	June 30, 2018			December 31, 2017
ASSETS
Cash and due from banks	$	373,448		$	397,880
Interest earning deposits with banks	119,672			181,341
Total cash and cash equivalents	493,120			579,221
Investment securities:
Securities available for sale, at fair value	1,647,260			1,408,326
Securities held to maturity, at amortized cost ($940,203 fair value at June 30, 2018 and $992,455 at December 31, 2017)	923,036			959,082
Marketable equity securities, at fair value	10,922			—
Non-marketable securities - FHLB and FRB stock	115,453			114,111
Total investment securities	2,696,671			2,481,519
Loans held for sale	423,367			548,578
Loans:
Total loans, excluding purchased credit-impaired loans	13,719,244			13,846,318
Purchased credit-impaired loans	101,001			119,744
Total loans	13,820,245			13,966,062
Less: Allowance for loan and lease losses	162,790			157,710
Net loans	13,657,455			13,808,352
Lease investments, net	433,505			409,051
Premises and equipment, net	281,458			286,690
Cash surrender value of life insurance	205,982			203,602
Goodwill	999,925			1,003,548
Other intangibles	50,968			54,766
Mortgage servicing rights, at fair value	296,629			276,279
Other real estate owned, net	10,869			9,736
Other real estate owned related to FDIC-assisted transactions	2,908			4,788
Other assets	413,700			420,810
Total assets	$	19,966,557		$	20,086,940
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing	$	6,347,208		$	6,381,512
Interest bearing	8,575,455			8,576,866
Total deposits	14,922,663			14,958,378
Short-term borrowings	651,462			861,039
Long-term borrowings	730,292			505,158
Junior subordinated notes issued to capital trusts	194,450			211,494
Accrued expenses and other liabilities	518,997			541,048
Total liabilities	17,017,864			17,077,117
STOCKHOLDERS’ EQUITY
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at June 30, 2018 and December 31, 2017; Series A, 8% perpetual non-cumulative, none issued and outstanding at June 30, 2018 and 4,000,000 shares issued and outstanding at December 31, 2017, $25 liquidation value; Series C, 6% perpetual non-cumulative, 200,000 shares issued and outstanding at June 30, 2018 and December 31, 2017, $1,000 liquidation value)	194,719			309,999
Common stock, ($0.01 par value; authorized 120,000,000 shares at June 30, 2018 and December 31, 2017; issued 86,121,465 shares at June 30, 2018 and 85,801,702 shares at December 31, 2017)	861			858
Additional paid-in capital	1,698,057			1,691,007
Retained earnings	1,127,814			1,065,303
Accumulated other comprehensive (loss) income	(9,818		)	3,584
Less: 1,926,871 and 1,883,810 shares of treasury common stock, at cost, at June 30, 2018 and December 31, 2017, respectively	(62,940		)	(60,928		)
Total stockholders’ equity	2,948,693			3,009,823
Total liabilities and stockholders’ equity	$	19,966,557		$	20,086,940

     See Accompanying Notes to Consolidated Financial Statements.

1

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Interest income:
Loans:
Taxable	$	164,401		$	143,426		$	321,520		$	277,163
Nontaxable	2,330			2,791			4,601			5,671
Investment securities:
Taxable	10,578			8,717			18,512			17,839
Nontaxable	9,439			9,837			18,915			19,810
Other interest earning accounts and Federal funds sold	244			228			375			427
Total interest income	186,992			164,999			363,923			320,910
Interest expense:
Deposits	17,386			8,793			32,418			16,268
Short-term borrowings	2,769			3,912			5,285			6,292
Long-term borrowings and junior subordinated notes	7,768			3,300			13,770			6,313
Total interest expense	27,923			16,005			51,473			28,873
Net interest income	159,069			148,994			312,450			292,037
Provision for credit losses	6,219			9,699			13,727			13,433
Net interest income after provision for credit losses	152,850			139,295			298,723			278,604
Non-interest income:
Mortgage banking revenue	18,926			30,152			43,973			58,608
Lease financing revenue, net	22,918			18,401			47,628			39,819
Treasury management fees	15,066			14,499			30,222			29,188
Wealth management fees	8,969			8,498			18,090			17,018
Card fees	5,654			4,413			10,441			8,979
Capital markets and international banking fees	3,785			3,586			6,783			6,839
Consumer and other deposit service fees	2,929			3,285			5,841			6,648
Brokerage fees	1,050			1,250			1,914			2,375
Loan service fees	2,148			2,037			4,393			4,006
Increase in cash surrender value of life insurance	1,272			1,301			2,380			2,589
Net (loss) gain on investment securities	(86		)	137			(260		)	368
Net loss on disposal of other assets	(397		)	(4		)	(754		)	(127		)
Other operating income	6,072			3,615			10,457			7,310
Total non-interest income	88,306			91,170			181,108			183,620
Non-interest expenses:
Salaries and employee benefits expense	123,478			102,566			229,992			204,117
Occupancy and equipment expense	16,451			15,284			33,880			30,328
Computer services and telecommunication expense	10,871			9,785			22,027			19,225
Advertising and marketing expense	3,342			3,245			7,205			6,406
Professional and legal expense	8,887			2,450			10,785			5,141
Other intangibles amortization expense	1,896			2,086			3,798			4,176
Branch exit and facilities impairment charges	340			6,589			340			5,907
Net loss recognized on other real estate owned and other related expense	1,048			690			1,095			1,534
Loss on extinguishment of debt	—			—			3,136			—
Goodwill impairment loss	3,623			—			3,623			—
Other operating expenses	23,056			23,517			44,997			45,720
Total non-interest expenses	192,992			166,212			360,878			322,554
Income before income taxes	48,164			64,253			118,953			139,670
Income tax expense	9,631			19,787			23,663			40,667
Net income	38,533			44,466			95,290			99,003
Dividends on preferred shares	3,000			2,002			6,100			4,005
Return from preferred stockholders due to redemption	—			—			(15,280		)	—
Net income available to common stockholders	$	35,533		$	42,464		$	104,470		$	94,998

2

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued)

(Amounts in thousands, except share and per share data)(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Common share data:
Basic earnings per common share	$	0.42	$	0.51	$	1.24	$	1.13
Diluted earnings per common share	0.42		0.50		1.23		1.12
Weighted average common shares outstanding for basic earnings per common share	84,253,966		83,842,963		84,160,344		83,753,195
Diluted weighted average common shares outstanding for diluted earnings per common share	85,251,810		84,767,414		85,074,626		84,773,271

See Accompanying Notes to Consolidated Financial Statements.

3

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net income	$	38,533		$	44,466		$	95,290		$	99,003
Unrealized holding (gains) losses on investment securities, net of reclassification adjustments	(7,968		)	3,979			(20,060		)	10,033
Reclassification adjustment for amortization of unrealized losses (gains) on investment securities transferred to held to maturity from available for sale	115			(350		)	266			(823		)
Reclassification adjustments for losses (gains) included in net income	86			(137		)	260			(368		)
Other comprehensive (loss) income, before tax	(7,767		)	3,492			(19,534		)	8,842
Income tax expense (benefit) related to items of other comprehensive (loss) income	2,097			(1,387		)	5,225			(3,512		)
Other comprehensive (loss) income, net of tax	(5,670		)	2,105			(14,309		)	5,330
Comprehensive income	$	32,863		$	46,571		$	80,981		$	104,333

See Accompanying Notes to Consolidated Financial Statements.

4

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Six Months EndedJune 30, 2018 and 2017

(Amounts in thousands, except per share data) (Unaudited)

	Preferred Stock			Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net of Tax			Treasury Stock			Non-controlling Interest			Total Stock- holders’ Equity
Balance at December 31, 2016	$	115,572		$	856	$	1,678,826		$	838,892		$	5,190		$	(60,384	)	$	257		$	2,579,209
Net income	—			—		—			99,003			—			—			—			99,003
Other comprehensive income, net of tax	—			—		—			—			5,330			—			—			5,330
Cash dividends declared on preferred shares	—			—		—			(4,005		)	—			—			—			(4,005		)
Cash dividends declared on common shares ($0.40 per share)	—			—		—			(33,960		)	—			—			—			(33,960		)
Restricted common stock activity, net of tax	—			—		(6,837		)	—			—			3,550			—			(3,287		)
Stock option activity, net of tax	—			1		448			—			—			—			—			449
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan	—			—		461			—			—			(3,017		)	—			(2,556		)
Stock-based compensation expense	—			—		8,924			—			—			—			—			8,924
Purchase of additional investment in subsidiary from minority owners	—			—		(570		)	—			—			—			(257		)	(827		)
Balance at June 30, 2017	$	115,572		$	857	$	1,681,252		$	899,930		$	10,520		$	(59,851	)	$	—		$	2,648,280
Balance at December 31, 2017	$	309,999		$	858	$	1,691,007		$	1,065,303		$	3,584		$	(60,928	)	$	—		$	3,009,823
Cumulative effect of accounting changes	—			—		—			(1,204		)	907			—			—			(297		)
Net income	—			—		—			95,290			—			—			—			95,290
Other comprehensive loss, net of tax	—			—		—			—			(14,309		)	—			—			(14,309		)
Redemption of preferred stock	(115,280		)	—		—			15,280			—			—			—			(100,000		)
Cash dividends declared on preferred shares	—			—		—			(6,100		)	—			—			—			(6,100		)
Cash dividends declared on common shares ($0.48 per share)	—			—		—			(40,755		)	—			—			—			(40,755		)
Restricted common stock activity, net of tax	—			1		(3,210		)	—			—			—			—			(3,209		)
Stock option activity, net of tax	—			2		428			—			—			—			—			430
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan	—			—		686			—			—			(2,012		)	—			(1,326		)
Stock-based compensation expense	—			—		9,146			—			—			—			—			9,146
Balance at June 30, 2018	$	194,719		$	861	$	1,698,057		$	1,127,814		$	(9,818	)	$	(62,940	)	$	—		$	2,948,693

See Accompanying Notes to Consolidated Financial Statements.

5

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands) (Unaudited)

	Six Months Ended
	June 30,
	2018			2017
Cash Flows From Operating Activities
Net income	$	95,290		$	99,003
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment and leased equipment	55,690			44,922
Branch exit and facilities impairment charges	340			5,907
Compensation expense for share-based payment plans	9,146			8,924
Net loss (gain) on sales of premises and equipment and leased equipment	684			(752		)
Amortization of other intangibles	3,798			4,176
Provision for credit losses	13,727			13,433
Deferred income tax expense	26,233			22,072
Amortization of premiums and discounts on investment securities, net	16,731			20,754
Accretion of discounts on loans, net	(9,239		)	(13,858		)
Net loss (gain) on investment securities	260			(368		)
Proceeds from sale of loans held for sale	2,046,650			2,340,861
Origination of loans held for sale	(1,949,399		)	(2,321,902		)
Net loss on sale of loans held for sale	13,732			887
Origination of mortgage servicing rights	(25,041		)	(27,568		)
Change in fair value of mortgage servicing rights	4,826			16,677
Net loss on other real estate owned	737			1,313
Increase in cash surrender value of life insurance	(2,380		)	(2,589		)
Loss on extinguishment of debt	3,136			—
Goodwill impairment loss	3,623			—
Increase in other assets, net	13,370			2,797
Decrease in other liabilities, net	(58,110		)	(37,530		)
Net cash provided by operating activities	263,804			177,159
Cash Flows From Investing Activities
Proceeds from sales of investment securities available for sale	2,610			2,271
Proceeds from maturities and calls of investment securities available for sale	202,918			167,856
Purchases of investment securities available for sale	(480,158		)	(47,016		)
Proceeds from maturities and calls of investment securities held to maturity	62,668			72,250
Purchases of investment securities held to maturity	(26,443		)	(29,457		)
Purchase of marketable equity securities	(312		)	—
Proceeds from sales of marketable equity securities	178			—
Purchases of non-marketable securities - FHLB and FRB stock	(33,212		)	(110,711		)
Redemption of non-marketable securities - FHLB and FRB stock	31,870			93,783
Net decrease (increase) in loans	143,580			(832,802		)
Purchases of mortgage servicing rights	(135		)	(786		)
Purchases of premises and equipment and leased equipment	(76,901		)	(78,833		)
Proceeds from sales of premises and equipment and leased equipment	7,361			14,227
Proceeds from sale of other real estate owned	2,766			16,686
Proceeds from sale of other real estate owned related to FDIC-assisted transactions	1,213			2,587
Purchase of additional investment in subsidiary from minority owners	—			(827		)
Net proceeds from FDIC related covered assets	434			(227		)
Net cash used in investing activities	(161,563		)	(730,999		)
Cash Flows From Financing Activities
Net (decrease) increase in deposits	(35,715		)	151,371
Proceeds from short-term borrowings - FHLB advances	140,000			2,350,000
Principal paid on short-term borrowings - FHLB advances	(550,000		)	(2,125,000		)
Net increase in other short-term borrowings	15,423			49,070
Proceeds from long-term borrowings	451,827			262,864
Principal paid on long-term borrowings	(41,693		)	(94,494		)
Redemption of junior subordinated notes issued to capital trusts	(20,619		)	—
Redemption of preferred stock	(100,000		)	—
Treasury stock transactions, net	(1,326		)	(2,556		)
Stock options exercised	2,803			1,376
Dividends paid on preferred stock	(8,100		)	(4,005		)
Dividends paid on common stock	(40,942		)	(33,998		)
Net cash (used in) provided by financing activities	(188,342		)	554,628
Net (decrease) increase in cash and cash equivalents	$	(86,101	)	$	788
Cash and cash equivalents:
Beginning of period	579,221			463,469
End of period	$	493,120		$	464,257

6

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

(Amounts in thousands) (Unaudited)

	Six Months Ended
	June 30,
	2018		2017
Supplemental Disclosures of Cash Flow Information:
Cash payments for:
Interest paid to depositors and on other borrowed funds	$	50,873	$	27,666
Income tax payments, net	1,951		2,486
Supplemental Schedule of Noncash Investing Activities:
Investment securities held to maturity purchased not settled	$	8,806	$	2,553
Loans transferred to other real estate owned	3,890		2,658
Loans transferred to other real estate owned related to FDIC-assisted transactions	—		2,321
Loans transferred to repossessed assets	1,299		969
Operating leases rewritten as direct finance leases included as loans	2,359		1,547
Long-term borrowings transferred to short-term borrowings	185,000		150,000
Supplemental Schedule of Noncash Investing Activities From Acquisitions:
Adjustments to noncash assets previously acquired:
Loans	$	—	$	1,846
Goodwill	—		(1,113		)
Other assets	—		(733		)
Total adjustments to noncash assets previously acquired	$	—	$	—

See Accompanying Notes to Consolidated Financial Statements.

7

MB FINANCIAL, INC. & SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1.    Basis of Presentation

These unaudited consolidated financial statements include the accounts of MB Financial, Inc., a Maryland corporation (the “Company”), and its subsidiaries, including its wholly owned national bank subsidiary, MB Financial Bank, N.A. (“MB Financial Bank”), based in Chicago, Illinois. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition, results of operations and cash flows for the interim periods have been made. The results of operations for the six months endedJune 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year.

These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and industry practice. Certain information in footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP and industry practice has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ from those estimates.

Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity.

Note 2. New Authoritative Accounting Guidance

ASC Topic 805 "Business Combinations." New authoritative accounting guidance under ASC Topic 805 "Business Combinations" amends prior guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 606 "Revenue from Contracts with Customers." New authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" amended prior guidance to require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. The Company's revenue is comprised of interest income on financial assets, which is excluded from the scope of this new guidance, and non-interest income. This new guidance changes how certain recurring revenue streams are recognized within lease financing revenue and insignificant components of non-interest income. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

ASC Topic 825 "Financial Instruments." New authoritative accounting guidance under ASC Topic 825 "Financial Instruments" amended prior guidance to require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The new guidance simplifies the impairment assessment of equity investments without readily determinable fair values, requires public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from changes in the instrument-specific credit risk when the entity has selected the fair value option for financial instruments and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

8

ASC Topic 405 "Liabilities-Extinguishment of Liabilities." New authoritative accounting guidance under ASC Topic 405, "Liabilities-Extinguishment of Liabilities" amended prior guidance to clarify that liabilities related to the sale of prepaid store-value products within the scope of this guidance are financial liabilities and that breakage for those liabilities are to be accounted for consistent with the breakage guidance in ASC Topic 606 "Revenue from Contracts with Customers." The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 842 "Leases." New authoritative accounting guidance under ASC Topic 842 "Leases" amended prior guidance to require lessees to recognize the assets and liabilities arising from all leases on the balance sheet. The new authoritative guidance defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In addition, the qualifications for a sale and leaseback transaction have been amended. The new authoritative guidance also requires qualitative and quantitative disclosures bylessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The new authoritative guidance will be effective for reporting periods after January 1, 2019. In July 2018, the Financial Accounting Standards Board issued new authoritative guidance to provide an additional transition method that allows entities to not apply this new guidance in the comparative periods presented in the financial statements and instead recognize a cumulative effect adjustment to the beginning retained earnings at the date of application. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition. The Company expects an increase in assets and liabilities as a result of recording additional lease contracts where the Company is lessee.

ASC Topic 815 "Derivatives and Hedging." New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new authoritative guidance expands and refines hedge accounting for both nonfinancial and financial risk components. The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 718 "Compensation - Stock Compensation." New authoritative accounting guidance under ASC Topic 718 "Compensation - Stock Compensation" amends prior guidance by clarifying which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 326 "Financial Instruments - Credit Losses." New authoritative accounting guidance under ASC Topic 326 "Financial Instruments - Credit Losses" amended the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The new authoritative guidance also requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected (net of the allowance for credit losses). In addition, the credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses rather than a write-down. The new authoritative guidance will be effective for reporting periods after January 1, 2020. The Company is evaluating the new guidance and expects it to have an impact on the Company's statements of operations and financial condition, the significance of which is not yet known nor can it be reasonably estimated currently. Due to the significant differences in the new authoritative guidance from existing GAAP, the implementation of this guidance may result in material changes in our accounting for credit losses on the financial instruments and will be impacted by the Company's loan and securities portfolios' composition, attributes, and quality in addition to the prevailing economic conditions and forecasts at the time of adoption. As part of the Company's evaluation process, it has established a steering committee and working group, including individuals from various functional areas, to assess processes and related controls, portfolio segmentation, model development, system requirements, and needed resources.

ASC Topic 230 "Statement of Cash Flows." New authoritative accounting guidance under ASC Topic 230 "Statement of Cash Flows" addresses eight specific cash flow classification issues with the objective of reducing the existing diversity in practice. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

9

New authoritative accounting guidance under ASC Topic 230 "Statement of Cash Flows" amends prior guidance to require an entity to include amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 740 "Income Taxes." New authoritative accounting guidance under ASC Topic 740 "Income Taxes" amends prior guidance to require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 350 "Intangibles-Goodwill and Other." New authoritative accounting guidance under ASC Topic 350 "Intangibles-Goodwill and Other" amends prior guidance to eliminate Step 2 from the goodwill impairment test and require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new authoritative guidance will be effective for reporting periods after January 1, 2020. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition.

ASC Topic 610 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets." New authoritative accounting guidance under ASC Topic 610 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" amends prior guidance to clarify the scope of Subtopic 610-20 by defining in substance nonfinancial assets and to add guidance for partial sales of nonfinancial assets. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 310 "Receivables - Nonrefundable Fees and Other Costs." New authoritative accounting guidance under ASC Topic 310 "Receivables - Nonrefundable Fees and Other Costs" amends prior guidance by shortening the amortization period for certain callable debt securities held at a premium requiring the premium to be amortized to the earliest call date. The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition.

ASC Topic 220 "Income Statement - Reporting Comprehensive Income." New authoritative accounting guidance under ASC Topic 220 "Income Statement - Reporting Comprehensive Income" allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from enactment of H.R. 1, originally known as the "Tax Cuts and Jobs Act." The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. The Company early adopted the new guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

Accounting changes. The Company adopted the new authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" on January 1, 2018 using the modified retrospective transition method for contracts that were not completed at the date of initial application. The Company recognized a cumulative effect reduction to the beginning retained earnings totaling $683 thousand. This amount relates to lease financing revenue where the Company's performance obligation is over time. Previously, such revenue was recognized immediately. See "Lease financing revenue, net" below.

The new authoritative accounting guidance under ASC Topic 606 requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The non-interest revenue streams that are considered to be in the scope of this new guidance are discussed below.

Lease financing revenue, net. Fees from the sale of third-party equipment maintenance contracts are included within lease financing revenue, net. The Company sells third-party equipment maintenance contracts and provides customers with an asset and maintenance contract management tool over the life of the maintenance contract. Since the Company provides support for the asset and maintenance contract management tool, the Company's performance obligation is satisfied over the life of the maintenance contract, and the fees are recognized monthly over the life of the maintenance contract. Payment is typically received at the time of sale of the maintenance contract.

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Treasury management fees and consumer and other deposit service fees. Deposit related fees (account analysis fees, monthly service fees, and other related fees) are included within treasury management fees and consumer and other deposit service fees. The Company's performance obligation is ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly.

Wealth management fees. Wealth management fees include revenue from the management and advisement of client assets and trust administration. The Company's performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually.

Card fees. Card fees include debit and credit card interchange fees and ATM fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. The Company's performance obligation for ATM fees is satisfied when services are provided, and the fees are recognized at that time. Payment is typically received immediately or in the following month.

Capital markets and international banking fees. Capital markets and international banking fees include M&A advisory and syndication fees. The Company's performance obligation is generally satisfied over time, and the fees are recognized monthly. For M&A advisory fees, a portion of the payment is received at the beginning of the engagement with the remainder once the transaction is completed. For syndication fees, payment is received annually.

The Company also adopted the new authoritative accounting guidance under ASC Topic 825 "Financial Instruments" and ASC Topic 220 "Income Statement - Reporting Comprehensive Income" on January 1, 2018. The Company recognized a cumulative effect increase to the beginning retained earnings and accumulated other comprehensive income totaling $385 thousand under ASC Topic 825 representing the fair value adjustment to equity securities at the date of initial application. In addition, the Company reclassified $729 thousand from accumulated other comprehensive loss to retained earnings for the stranded tax effects resulting from enactment of the Tax Cuts and Jobs Act at the date of initial application of the new guidance under ASC Topic 220.

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Note 3.   Earnings Per Common Share

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company's common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (amounts in thousands, except share and per share data).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Distributed earnings allocated to common stock	$	20,472	$	17,829	$	40,755	$	33,960
Undistributed earnings	18,061		26,637		54,535		65,043
Net income	38,533		44,466		95,290		99,003
Less: preferred stock dividends	3,000		2,002		6,100		4,005
Plus: return from preferred stockholders due to redemption (1)	—		—		15,280		—
Net income available to common stockholders for basic earnings per common share	35,533		42,464		104,470		94,998
Plus: preferred stock dividends on convertible preferred stock	—		2		—		5
Less: earnings allocated to participating securities	1		1		3		2
Earnings allocated to common stockholders for diluted earnings per common share	$	35,532	$	42,465	$	104,467	$	95,001
Weighted average shares outstanding for basic earnings per common share	84,253,966		83,842,963		84,160,344		83,753,195
Dilutive effect of:
Stock options	553,999		554,314		530,892		595,415
Restricted shares and units	443,845		363,003		383,390		417,433
Convertible preferred stock	—		7,134		—		7,228
Total dilutive effect of equity awards and convertible preferred stock	997,844		924,451		914,282		1,020,076
Weighted average shares outstanding for diluted earnings per common share	85,251,810		84,767,414		85,074,626		84,773,271
Basic earnings per common share	$	0.42	$	0.51	$	1.24	$	1.13
Diluted earnings per common share	0.42		0.50		1.23		1.12

⁽¹⁾  Represents the excess carrying amount over the redemption price of the 8% Series A non-cumulative perpetual preferred stock redeemed in the first quarter of 2018.

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Note 4. Investment Securities

Amortized cost and fair value of investment securities, excluding marketable equity securities and non-marketable FHLB and FRB stock, were as follows as of the dates indicated (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2018
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,098	$	—	$	(72	)	$	5,026
States and political subdivisions	338,927		11,686		(552		)	350,061
Residential mortgage-backed securities	1,225,978		1,594		(21,993		)	1,205,579
Commercial mortgage-backed securities	63,527		84		(187		)	63,424
Corporate bonds	23,179		—		(9		)	23,170
Total Available for Sale	1,656,709		13,364		(22,813		)	1,647,260
Held to Maturity
States and political subdivisions	884,576		18,512		(1,745		)	901,343
Residential mortgage-backed securities	38,460		400		—			38,860
Total Held to Maturity	923,036		18,912		(1,745		)	940,203
Total	$	2,579,745	$	32,276	$	(24,558	)	$	2,587,463
December 31, 2017
Available for Sale
U.S. Government sponsored agencies and enterprises	$	23,013	$	3	$	(9	)	$	23,007
States and political subdivisions	363,813		15,998		(486		)	379,325
Residential mortgage-backed securities	861,594		3,035		(11,930		)	852,699
Commercial mortgage-backed securities	71,554		612		(131		)	72,035
Corporate bonds	70,155		84		(42		)	70,197
Equity securities (1)	11,236		—		(173		)	11,063
Total Available for Sale	1,401,365		19,732		(12,771		)	1,408,326
Held to Maturity
States and political subdivisions	878,400		32,559		(447		)	910,512
Residential mortgage-backed securities	80,682		1,261		—			81,943
Total Held to Maturity	959,082		33,820		(447		)	992,455
Total	$	2,360,447	$	53,552	$	(13,218	)	$	2,400,781

⁽¹⁾  Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new guidance under ASC Topic 825 "Financial Instruments" on January 1, 2018.

The increase in investment securities was due to investments in residential mortgage-backed securities in the first quarter of 2018. The Company has no direct exposure to the State of Illinois in its investment securities portfolio, but approximately 20% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of June 30, 2018. Approximately 95% of the state and political subdivisions securities were general obligation issues, and 27% were insured or had another form of credit enhancement as of June 30, 2018.

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Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at June 30, 2018 were as follows (in thousands):

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,026	$	(72	)	$	—	$	—		$	5,026	$	(72	)
States and political subdivisions	13,492		(57		)	18,587		(495		)	32,079		(552		)
Residential mortgage-backed securities	713,248		(7,402		)	398,203		(14,591		)	1,111,451		(21,993		)
Commercial mortgage-backed securities	31,993		(127		)	11,263		(60		)	43,256		(187		)
Corporate bonds	23,170		(9		)	—		—			23,170		(9		)
Total Available for Sale	786,929		(7,667		)	428,053		(15,146		)	1,214,982		(22,813		)
Held to Maturity
States and political subdivisions	131,461		(1,191		)	14,546		(554		)	146,007		(1,745		)
Total	$	918,390	$	(8,858	)	$	442,599	$	(15,700	)	$	1,360,989	$	(24,558	)

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at December 31, 2017 were as follows (in thousands):

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,111	$	(9	)	$	—	$	—		$	5,111	$	(9	)
States and political subdivisions	9,016		(29		)	18,754		(457		)	27,770		(486		)
Residential mortgage-backed securities	256,769		(1,853		)	407,224		(10,077		)	663,993		(11,930		)
Commercial mortgage-backed securities	19,483		(20		)	14,583		(111		)	34,066		(131		)
Corporate bonds	7,052		(8		)	9,963		(34		)	17,015		(42		)
Equity securities	11,063		(173		)	—		—			11,063		(173		)
Total Available for Sale	308,494		(2,092		)	450,524		(10,679		)	759,018		(12,771		)
Held to Maturity
States and political subdivisions	45,499		(257		)	12,561		(190		)	58,060		(447		)
Total	$	353,993	$	(2,349	)	$	463,085	$	(10,869	)	$	817,078	$	(13,218	)

The total number of security positions in the investment portfolio in an unrealized loss position at June 30, 2018 was 626 compared to 471 at December 31, 2017. This increase in total number of security positions in a continuous unrealized loss position from December 31, 2017 to June 30, 2018 was mainly attributable to the mortgage-backed securities in the investment securities portfolio.

Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) whether the Company is more likely than not to sell the security before recovery of its cost basis.

As of June 30, 2018, management does not have the intent to sell any of the securities in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2018, management believes the impairments detailed in the table above are temporary.

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Changes in market interest rates can significantly influence the fair value of securities, and the fair value of our municipal securities portfolio would decline substantially if interest rates increase materially.

Net gains (losses) recognized on investment securities were as follows (in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Realized gains	$	62		$	137	$	150		$	374
Realized losses	(148		)	—		(410		)	(6		)
Net (losses) gains	$	(86	)	$	137	$	(260	)	$	368

The amortized cost and fair value of investment securities as of June 30, 2018 by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.

	Amortized		Fair
(In thousands)	Cost		Value
Available for sale:
Due in one year or less	$	61,670	$	62,235
Due after one year through five years	124,424		128,078
Due after five years through ten years	40,076		40,532
Due after ten years	141,034		147,412
Residential and commercial mortgage-backed securities	1,289,505		1,269,003
	1,656,709		1,647,260
Held to maturity:
Due in one year or less	42,695		42,916
Due after one year through five years	175,308		180,895
Due after five years through ten years	224,040		229,732
Due after ten years	442,533		447,800
Residential mortgage-backed securities	38,460		38,860
	923,036		940,203
Total	$	2,579,745	$	2,587,463

Investment securities with a carrying amount of $738.6 million at June 30, 2018 and $726.1 million at December 31, 2017 were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $606.0 million and $625.2 million were required to be pledged at June 30, 2018 and December 31, 2017, respectively.

Investment securities held to maturity with a carrying amount of $2.6 million were transferred to the available for sale portfolio and subsequently sold during the first quarter of 2018. These investment securities were obligations of states and political subdivisions that were downgraded and no longer met our credit criteria.

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Note 5. Loans

Loans consist of the following at (in thousands):

	June 30, 2018		December 31, 2017
Commercial loans	$	4,816,545	$	4,786,180
Commercial loans collateralized by assignment of lease payments	2,100,460		2,113,135
Commercial real estate	3,929,327		4,147,529
Residential real estate	1,352,625		1,432,458
Construction real estate	495,805		406,849
Indirect vehicle	749,983		667,928
Home equity	192,785		219,098
Other consumer loans	81,714		73,141
Total loans, excluding purchased credit-impaired loans	13,719,244		13,846,318
Purchased credit-impaired loans	101,001		119,744
Total loans	$	13,820,245	$	13,966,062

Loans are made to individuals as well as commercial and tax exempt entities. Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Except for commercial loans collateralized by assignment of lease payments, asset-based loans, residential real estate loans, and indirect vehicle loans, credit risk tends to be geographically concentrated in that a majority of the loan customers are located in Illinois.

The Company's extension of credit is governed by its Credit Risk Policy, which was established to control the quality of the Company's loans. This policy is reviewed and approved by the Enterprise Risk Committee of the Company's Board of Directors on an annual basis.

Commercial Loans. Commercial credit is extended mostly to middle market customers. Such credits are typically comprised of working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a significant amount by the businesses' principal owners. Commercial loans are made based primarily on the historical cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not perform as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. Asset-based loans, also included in commercial loans, are made to businesses with the primary source of repayment derived from payments on the related assets securing the loan. Collateral for these loans may include accounts receivable, inventory and equipment, and is monitored regularly to ensure ongoing sufficiency of collateral coverage and quality. The primary risk for these loans is a significant decline in collateral values due to general market conditions. Loan terms that mitigate these risks include typical industry amortization schedules, percentage of collateral advances, maintenance of cash collateral accounts and regular asset monitoring. Because of the national scope of our asset-based lending, the risk of these loans is also diversified by geography.

Commercial Loans Collateralized by Assignment of Lease Payments ("Lease Loans"). The Company makes lease loans to lessors where the underlying leases are with both investment grade and non-investment grade companies. Investment grade lessees are companies rated in one of the four highest categories by Moody's Investor Services. Whether or not companies fall into this category, each lease loan is considered on its individual merit based on the financial wherewithal of the lessee using financial information available at the time of underwriting. In addition, leases that transfer substantially all of the benefits and risk related to the equipment ownership are classified as direct finance leases and are included in lease loans.

Commercial Real Estate Loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as property income based loans and the repayment of these loans is largely dependent on the successful operation of the property, which also serves as collateral for the loan. In addition, $1.2 billion of commercial real estate loans at June 30, 2018 were secured by owner-occupied properties where the primary source of repayment is the cash flow from the ongoing operations and activities conducted by the owner of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.

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Construction Real Estate Loans. The Company defines construction loans as loans where the loan proceeds are monitored by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, these loans are subject to other industry specific policy guidelines outlined in the Company's Credit Risk Policy.

Consumer Related Loans. The Company originates direct and indirect consumer loans, including residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans (motorcycle, marine, recreational, and powersports vehicles). Each loan type is underwritten based upon several factors including debt to income, type of collateral and loan to collateral value, credit history, and the Company's relationship with the borrower. Indirect loan and credit card underwriting involves the use of risk-based pricing in the underwriting process.

Purchased credit-impaired loans. Purchased credit-impaired loans are accounted for under ASC Topic 310-30, which include purchased credit-impaired loans acquired through business combinations, FDIC-assisted transactions and re-purchase transactions with the Government National Mortgage Association ("GNMA"). The loans re-purchased from GNMA were originally sold by the Company with servicing retained and subsequently became delinquent. These loans are also insured by the Federal Housing Administration (commonly referred to as "FHA") or the U.S. Department of Veterans Affairs (commonly referred to as "VA") where the Company would be able to recover the principal balance of these loans. All re-purchases from GNMA are at the Company's discretion.

Pledged loans. A collateral pledge agreement exists whereby at all times, the Company must keep on hand, free of all other pledges, liens, and encumbrances, loans with unpaid principal balances aggregating no less than 160% for qualifying first mortgage loans, 170% for home equity loans, 161% for qualifying commercial real estate loans and 105% for loans held for sale, of the outstanding advances from the Federal Home Loan Bank.  As of June 30, 2018 and December 31, 2017, the Company had $4.3 billion and $4.7 billion, respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $3.2 billion and $3.1 billion were required to be pledged at June 30, 2018 and December 31, 2017, respectively.

The Company also has a collateral pledge agreement with the Federal Reserve Bank. As of June 30, 2018 and December 31, 2017, the Company had $858.9 million and $902.2 million, respectively, of loans pledged as collateral at the Federal Reserve Bank for the discount window as a backup liquidity funding source.

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The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of June 30, 2018 and December 31, 2017 (in thousands):

	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total Past Due		Total
June 30, 2018
Commercial	$	4,808,606	$	116	$	217	$	7,606	$	7,939	$	4,816,545
Commercial collateralized by assignment of lease payments	2,069,443		16,560		10,769		3,688		31,017		2,100,460
Commercial real estate:
Health care	694,863		—		—		—		—		694,863
Industrial	857,560		764		—		3,424		4,188		861,748
Multifamily	549,083		529		—		—		529		549,612
Retail	489,135		—		—		835		835		489,970
Office	430,984		—		—		228		228		431,212
Other	900,604		552		86		680		1,318		901,922
Residential real estate	1,341,504		617		1,687		8,817		11,121		1,352,625
Construction real estate	495,805		—		—		—		—		495,805
Indirect vehicle	744,297		3,947		1,131		608		5,686		749,983
Home equity	186,479		1,187		794		4,325		6,306		192,785
Other consumer	81,541		91		43		39		173		81,714
Total loans, excluding purchased credit-impaired loans	13,649,904		24,363		14,727		30,250		69,340		13,719,244
Purchased credit-impaired loans	60,429		4,685		5,124		30,763		40,572		101,001
Total loans	$	13,710,333	$	29,048	$	19,851	$	61,013	$	109,912	$	13,820,245
Non-performing loan aging	$	30,509	$	1,103	$	6,663	$	30,250	$	38,016	$	68,525
December 31, 2017
Commercial	$	4,769,244	$	1,702	$	6,926	$	8,308	$	16,936	$	4,786,180
Commercial collateralized by assignment of lease payments	2,099,246		11,320		1,878		691		13,889		2,113,135
Commercial real estate:
Health care	710,722		—		—		—		—		710,722
Industrial	908,394		—		—		755		755		909,149
Multifamily	601,844		688		—		732		1,420		603,264
Retail	503,224		—		—		474		474		503,698
Office	453,960		—		956		1,454		2,410		456,370
Other	956,181		7,035		76		1,034		8,145		964,326
Residential real estate	1,410,473		12,359		1,907		7,719		21,985		1,432,458
Construction real estate	404,595		2,254		—		—		2,254		406,849
Indirect vehicle	661,028		4,905		1,083		912		6,900		667,928
Home equity	210,831		3,161		1,073		4,033		8,267		219,098
Other consumer	72,846		202		36		57		295		73,141
Total loans, excluding purchased credit-impaired loans	13,762,588		43,626		13,935		26,169		83,730		13,846,318
Purchased credit-impaired loans	63,937		8,749		3,997		43,061		55,807		119,744
Total loans	$	13,826,525	$	52,375	$	17,932	$	69,230	$	139,537	$	13,966,062
Non-performing loan aging	$	36,879	$	8,799	$	4,961	$	26,169	$	39,929	$	76,808

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The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing by class of loans, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018				December 31, 2017
			Loans past due				Loans past due
	Non-accrual		90 days or more and still accruing		Non-accrual		90 days or more and still accruing
Commercial	$	10,727	$	—	$	14,001	$	3,500
Commercial collateralized by assignment of lease payments	5,373		3,688		490		531
Commercial real estate:
Health care	—		—		—		—
Industrial	3,485		—		8,807		—
Multifamily	635		—		860		—
Office	557		—		2,772		—
Retail	835		—		590		—
Other	5,813		75		8,016		190
Residential real estate	19,103		201		18,374		1,210
Construction real estate	—		—		—		—
Indirect vehicle	3,444		7		3,019		81
Home equity	14,541		—		14,305		—
Other consumer	2		39		4		58
Total	$	64,515	$	4,010	$	71,238	$	5,570

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company's risk rating system, the Company classifies potential problem and problem loans as “Special Mention,” “Substandard,” and “Doubtful.” Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management's close attention are deemed to be Special Mention. Loans rated but not adversely classified are deemed to be Pass. Risk ratings are updated any time the situation warrants and at least annually.

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Loans not rated are included in groups of homogeneous loans with similar risk and loss characteristics and are not included in the table below. The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2018
Commercial	$	4,518,183	$	169,458	$	128,904	$	—	$	4,816,545
Commercial collateralized by assignment of lease payments	2,083,287		6,114		11,059		—		2,100,460
Commercial real estate:
Health care	610,505		7,149		77,209		—		694,863
Industrial	833,104		19,720		8,924		—		861,748
Multifamily	546,488		1,345		1,779		—		549,612
Retail	465,899		21,226		2,845		—		489,970
Office	422,682		4,735		3,795		—		431,212
Other	854,186		16,600		31,136		—		901,922
Construction real estate	490,270		—		5,535		—		495,805
Total	$	10,824,604	$	246,347	$	271,186	$	—	$	11,342,137
December 31, 2017
Commercial	$	4,535,111	$	147,232	$	103,837	$	—	$	4,786,180
Commercial collateralized by assignment of lease payments	2,095,668		7,527		9,940		—		2,113,135
Commercial real estate:
Health care	640,751		33,672		36,299		—		710,722
Industrial	885,524		12,411		11,214		—		909,149
Multifamily	595,818		146		7,300		—		603,264
Retail	492,830		8,326		2,542		—		503,698
Office	452,902		696		2,772		—		456,370
Other	891,703		37,682		34,941		—		964,326
Construction real estate	406,849		—		—		—		406,849
Total	$	10,997,156	$	247,692	$	208,845	$	—	$	11,453,693

Approximately $27.5 million and $35.6 million of the substandard loans were non-performing as of June 30, 2018 and December 31, 2017, respectively.

For residential real estate, home equity, indirect vehicle and other consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	Performing		Non-performing		Total
June 30, 2018
Residential real estate	$	1,333,321	$	19,304	$	1,352,625
Indirect vehicle	746,532		3,451		749,983
Home equity	178,244		14,541		192,785
Other consumer	81,673		41		81,714
Total	$	2,339,770	$	37,337	$	2,377,107
December 31, 2017
Residential real estate	$	1,412,874	$	19,584	$	1,432,458
Indirect vehicle	664,828		3,100		667,928
Home equity	204,793		14,305		219,098
Other consumer	73,079		62		73,141
Total	$	2,355,574	$	37,051	$	2,392,625

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The recorded investment in residential mortgage loans secured by residential real estate properties (including purchased credit-impaired loans) for which foreclosure proceedings are in process totaled $54.7 million and $43.6 million at June 30, 2018 and December 31, 2017, respectively.

The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018
									Three Months Ended				Six Months Ended
	Unpaid Principal Balance		Recorded Investment		Partial Charge-offs		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	5,862	$	5,321	$	541	$	—	$	6,473	$	—	$	6,768	$	—
Commercial collateralized by assignment of lease payments	—		—		—		—		—		—		—		—
Commercial real estate:
Health care	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		1,653		52
Residential real estate	4,089		4,051		38		—		4,142		—		3,770		—
Construction real estate	—		—		—		—		—		—		—		—
Indirect vehicle	647		334		313		—		644		21		562		28
Home equity	79		79		—		—		—		—		—		—
Other consumer	—		—		—		—		—		—		—		—
With an allowance recorded:
Commercial	4,795		4,795		—		1,421		4,917		78		4,921		97
Commercial collateralized by assignment of lease payments	5,078		5,078		—		3,144		331		—		166		—
Commercial real estate:
Health care	—		—		—		—		—		—		539		28
Industrial	3,423		3,423		—		1,420		3,493		4		3,207		8
Multifamily	—		—		—		—		—		—		—		—
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Other	6,487		6,487		—		559		4,149		124		2,086		124
Residential real estate	20,461		18,603		1,858		1,729		18,605		31		18,956		32
Construction real estate	—		—		—		—		—		—		—		—
Indirect vehicle	—		—		—		—		—		—		—		—
Home equity	31,383		28,767		2,616		1,923		28,933		20		29,305		30
Other consumer	—		—		—		—		—		—		—		—
Total	$	82,304	$	76,938	$	5,366	$	10,196	$	71,687	$	278	$	71,933	$	399

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	December 31, 2017
									Year Ended
	Unpaid Principal Balance		Recorded Investment		Partial Charge-offs		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	8,312	$	7,771	$	541	$	—	$	5,595	$	95
Commercial collateralized by assignment of lease payments	—		—		—		—		301		—
Commercial real estate:
Health care	—		—		—		—		—		—
Industrial	—		—		—		—		1,260		8
Multifamily	—		—		—		—		1,261		29
Retail	—		—		—		—		814		27
Office	527		527		—		—		1,426		18
Other	10,597		10,597		—		—		2,312		128
Residential real estate	1,950		1,912		38		—		483		—
Construction real estate	—		—		—		—		—		—
Indirect vehicle	408		202		206		—		411		26
Home equity	81		81		—		—		376		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	7,418		7,418		—		2,315		7,668		277
Commercial collateralized by assignment of lease payments	—		—		—		—		126		14
Commercial real estate:
Health care	—		—		—		—		—		—
Industrial	8,339		8,317		22		2,669		3,215		171
Multifamily	568		568		—		320		426		—
Retail	—		—		—		—		1,345		28
Office	2,293		2,277		16		752		636		4
Other	—		—		—		—		29		—
Residential real estate	21,380		19,014		2,366		2,158		17,616		25
Construction real estate	—		—		—		—		—		—
Indirect vehicle	—		—		—		—		—		—
Home equity	30,762		28,286		2,476		2,200		27,982		54
Other consumer	—		—		—		—		—		—
Total	$	92,635	$	86,970	$	5,665	$	10,414	$	73,282	$	904

Impaired loans included accruing restructured loans of $25.7 million and $28.6 million that have been modified and are performing in accordance with those modified terms as of June 30, 2018 and December 31, 2017, respectively.  In addition, impaired loans included $26.2 million and $30.8 million of non-performing restructured loans as of June 30, 2018 and December 31, 2017, respectively.

Loans may be restructured in an effort to maximize collections from financially distressed borrowers. We use various restructuring techniques, including, but not limited to, deferring past due interest or principal, implementing an A/B note structure, redeeming past due taxes, reducing interest rates, extending maturities and modifying amortization schedules. Residential real estate loans are restructured in an effort to minimize losses while allowing borrowers to remain in their primary residences when possible.

A loan classified as a troubled debt restructuring will no longer be included in the troubled debt restructuring disclosures in the years after the restructuring if the loan performs in accordance with the terms specified by the restructuring agreement and the interest rate specified in the restructuring agreement represents a market rate at the time of modification. The specified interest rate is considered a market rate when the interest rate is equal to or greater than the rate the Company is willing to accept at the

22

time of restructuring for a new loan with comparable risk. If there are concerns that the borrower will not be able to meet the modified terms of the loan, the loan will continue to be included in the troubled debt restructuring disclosures.

Impairment analyses on commercial-related loans classified as troubled debt restructurings are performed in conjunction with the normal allowance for loan and lease losses process. Consumer loans classified as troubled debt restructurings are aggregated in two pools that share common risk characteristics, home equity and residential real estate loans, with impairment measured on a quarterly basis based on the present value of expected future cash flows discounted at the loan's effective interest rate.

The following table presents loans that were restructured during the three months ended June 30, 2018 (dollars in thousands):

	June 30, 2018
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Total	—	$	—	$	—	$	—
Non-Performing:
Residential real estate	8	$	935	$	935	$	152
Indirect vehicle	9	54		54		36
Home equity	2	76		76		5
Total	19	$	1,065	$	1,065	$	193

The following table presents loans that were restructured during the six months endedJune 30, 2018 (dollars in thousands):

	June 30, 2018
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Residential real estate	1	$	88	$	88	$	9
Total	1	$	88	$	88	$	9
Non-Performing:
Residential real estate	16	$	2,441	$	2,441	$	938
Indirect vehicle	20	120		120		38
Home equity	5	210		210		14
Total	41	$	2,771	$	2,771	$	990

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The following table presents loans that were restructured during the three months ended June 30, 2017 (dollars in thousands):

	June 30, 2017
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Commercial	5	$	2,491	$	2,491	$	373
Commercial real estate:
Industrial	2	2,787		2,787		—
Office	1	549		549		—
Other	1	147		147		—
Residential real estate	3	$	493	$	493	$	86
Home equity	2	46		46		3
Total	14	$	6,513	$	6,513	$	462
Non-Performing:
Commercial	2	$	676	$	676	$	—
Commercial real estate:
Multifamily	3	290		290		—
Retail	1	906		906		—
Residential real estate	8	1,122		1,122		289
Indirect vehicle	8	77		77		25
Home equity	2	593		593		57
Total	24	$	3,664	$	3,664	$	371

The following table presents loans that were restructured during the six months endedJune 30, 2017 (dollars in thousands):

	June 30, 2017
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Commercial	5	$	2,491	$	2,491	$	373
Commercial real estate
Industrial	2	2,787		2,787		—
Office	1	549		549		—
Other	1	147		147		—
Residential real estate	6	902		902		135
Home equity	3	78		78		6
Total	18	$	6,954	$	6,954	$	514
Non-Performing:
Commercial	2	$	676	$	676	$	—
Commercial real estate:
Multifamily	3	290		290		—
Retail	1	906		906		—
Residential real estate	17	2,380		2,380		443
Indirect vehicle	11	97		97		29
Home equity	3	593		593		57
Total	37	$	4,942	$	4,942	$	529

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Of the troubled debt restructurings entered into during the past twelve months, none subsequently defaulted during the six months endedJune 30, 2018.  Performing troubled debt restructurings are considered to have defaulted when they become 90 days or more past due post-restructuring or are placed on non-accrual status.

The following table presents the troubled debt restructurings activity during the six months endedJune 30, 2018 (in thousands):

	Performing			Non-performing
Beginning balance	$	28,554		$	30,836
Additions	88			2,771
Charge-offs	—			(130		)
Principal payments, net	(4,774		)	(5,364		)
Removals	(77		)	(8		)
Transfer to other real estate owned	—			—
Transfers in	2,382			513
Transfers out	(513		)	(2,382		)
Ending balance	$	25,660		$	26,236

Loans removed from troubled debt restructuring status are those that were restructured in a previous calendar year at a market rate of interest and have performed in compliance with the modified terms.

The following table presents the type of modification for loans that have been restructured during the six months endedJune 30, 2018 (in thousands):

	June 30, 2018
	Extended
	Maturity,				Delay in
	Amortization		Extended		Payments and/or
	and Reduction		Maturity and/or		Reduction of
	of Interest Rate		Amortization		Interest Rate		Total
Residential real estate	$	1,256	$	862	$	411	$	2,529
Indirect vehicle	—		—		120		120
Home equity	—		210		—		210
Total	$	1,256	$	1,072	$	531	$	2,859

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The following table presents the activity in the allowance for credit losses, balance in allowance for credit losses and recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2018 and 2017 (in thousands):

	Commercial			Commercial collateralized by assignment of lease payments		Commercial real estate		Residential real estate			Construction real estate		Indirect vehicle		Home equity			Other consumer		Unfunded commitments		Total
June 30, 2018
Allowance for credit losses:
Three Months Ended
Beginning balance	$	45,551		$	12,993	$	65,798	$	6,376		$	19,803	$	4,350	$	4,346		$	2,495	$	1,678	$	163,390
Charge-offs	1,534			716		2,621		28			—		1,328		184			309		—		6,720
Recoveries	167			149		329		26			37		664		228			89		—		1,689
Provision	(3,866		)	669		1,885		(642		)	6,952		1,052		(248		)	307		110		6,219
Ending balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Six Months Ended
Beginning balance	$	46,267		$	13,007	$	63,429	$	7,012		$	15,501	$	4,728	$	5,296		$	2,470	$	1,698	$	159,408
Charge-offs	2,936			716		5,097		729			—		3,152		248			660		—		13,538
Recoveries	504			400		1,091		96			430		1,843		298			319		—		4,981
Provision	(3,517		)	404		5,968		(647		)	10,861		1,319		(1,204		)	453		90		13,727
Ending balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,421		$	3,144	$	1,979	$	1,729		$	—	$	—	$	1,923		$	—	$	616	$	10,812
Collectively evaluated for impairment	38,823			9,951		62,400		4,003			26,757		4,738		2,219			2,582		1,172		152,645
Acquired and accounted for under ASC 310-30 (1)	74			—		1,012		—			35		—		—			—		—		1,121
Total ending allowance balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Loans:
Individually evaluated for impairment	$	10,116		$	5,078	$	9,910	$	22,654		$	—	$	334	$	28,846		$	—	$	—	$	76,938
Collectively evaluated for impairment	4,806,429			2,095,382		3,919,417		1,329,971			495,805		749,649		163,939			81,714		—		13,642,306
Acquired and accounted for under ASC 310-30 (1)	10,459			—		24,286		51,485			3,641		—		9,855			1,275		—		101,001
Total ending loans balance	$	4,827,004		$	2,100,460	$	3,953,613	$	1,404,110		$	499,446	$	749,983	$	202,640		$	82,989	$	—	$	13,820,245

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	Commercial			Commercial collateralized  by assignment of lease payments			Commercial real estate		Residential real estate		Construction real estate		Indirect vehicle		Home equity			Other consumer		Unfunded commitments			Total
June 30, 2017
Allowance for credit losses:
Three Months Ended
Beginning balance	$	40,690		$	12,143		$	58,220	$	8,131	$	14,859	$	3,624	$	5,312		$	1,191	$	2,328		$	146,498
Charge-offs	700			—			262		270		—		930		261			498		—			2,921
Recoveries	1,339			249			362		58		47		565		292			109		—			3,021
Provision	2,454			373			4,927		330		357		704		206			412		(64		)	9,699
Ending balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Six Months Ended
Beginning balance	$	44,661		$	12,238		$	51,807	$	5,971	$	14,758	$	3,421	$	5,469		$	1,041	$	2,476		$	141,842
Charge-offs	868			—			1,347		360		—		2,341		434			944		—			6,294
Recoveries	2,849			712			880		586		159		1,217		575			338		—			7,316
Provision	(2,859		)	(185		)	11,907		2,052		346		1,666		(61		)	779		(212		)	13,433
Ending balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,076		$	—		$	724	$	1,839	$	—	$	—	$	2,940		$	—	$	516		$	7,095
Collectively evaluated for impairment	42,619			12,765			62,115		6,410		15,227		3,963		2,609			1,214		1,748			148,670
Acquired and accounted for under ASC 310-30 (1)	88			—			408		—		36		—		—			—		—			532
Total ending allowance balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Loans:
Individually evaluated for impairment	$	11,167		$	1		$	13,820	$	16,956	$	—	$	144	$	29,019		$	—	$	—		$	71,107
Collectively evaluated for impairment	4,692,161			2,076,910			3,868,934		1,394,303		449,116		627,675		209,933			74,925		—			13,393,957
Acquired and accounted for under ASC 310-30 (1)	17,797			—			38,859		73,872		5,201		—		11,558			1,790		—			149,077
Total ending loans balance	$	4,721,125		$	2,076,911		$	3,921,613	$	1,485,131	$	454,317	$	627,819	$	250,510		$	76,715	$	—		$	13,614,141

⁽¹⁾  Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.”

Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration.  

• Pass rated loans (typically performing loans) are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.

• Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC Topic 310-30 if they display at least some level of credit deterioration since origination.

• Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.

For pass rated loans (non-purchased credit-impaired loans), the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans.

In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans, the loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows.

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Substantially all of the loans acquired in FDIC-assisted transactions displayed at least some level of credit deterioration and as such are included as non-impaired and impaired loans as described immediately above.

During the six months endedJune 30, 2018, there was a negative provision for credit losses of $413 thousand and net recoveries of $357 thousand in relation to purchased credit-impaired loans. There was $1.1 million and $1.2 million in allowance for loan and lease losses related to these purchased credit-impaired loans at June 30, 2018 and December 31, 2017, respectively.  The provision for credit losses and accompanying charge-offs are included in the table above.

Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the three and six months endedJune 30, 2018 and 2017 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Balance at beginning of period	$	10,267		$	14,911		$	12,069		$	16,050
Purchases	—			—			—			43
Accretion	(2,223		)	(2,831		)	(4,634		)	(5,019		)
Other (1)	197			606			806			1,612
Balance at end of period	$	8,241		$	12,686		$	8,241		$	12,686

⁽¹⁾  Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC 310-30.

In our FDIC-assisted transactions, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. Due to the loss-share agreements with the FDIC, we recorded a receivable (FDIC indemnification asset) from the FDIC equal to the present value of the corresponding reimbursement percentages on the estimated losses embedded in the loan portfolio.

For other loans acquired through business combinations, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors.

The carrying amount of loans acquired through a business combination by loan pool type are as follows (in thousands):

June 30, 2018	Purchased Credit-Impaired Loans		Purchased Non-Credit-Impaired Loans		Total
Covered loans (1):
Consumer related	$	14,005	$	—	$	14,005
Non-covered loans:
Commercial loans	10,459		176,660		187,119
Commercial loans collateralized by assignment of lease payments	—		15,406		15,406
Commercial real estate	24,285		601,356		625,641
Construction real estate	3,641		2,758		6,399
Consumer related	5,029		231,229		236,258
Total non-covered loans	43,414		1,027,409		1,070,823
Total acquired	$	57,419	$	1,027,409	$	1,084,828

⁽¹⁾  Covered loans refer to loans covered under loss-sharing agreements with the FDIC. The remaining loss-share agreements expire between 2019 and 2020.

In addition to loans acquired through a business combination noted in the table above, consumer related purchased credit-impaired loans includes loans repurchased from GNMA of $43.6 million as of June 30, 2018.

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Note 6.   Goodwill and Intangibles

The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit and client relationship intangibles, consists of goodwill. Under ASC Topic 350, goodwill is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill to determine potential impairment annually, or more frequently if events and circumstances indicate that goodwill might be impaired, by comparing the carrying value of the reporting units with the fair value of the reporting units.

The Company's annual assessment date is as of December 31. Goodwill is tested for impairment at the reporting unit level. The Company has three reporting units: Banking, Leasing, and Mortgage Banking. The carrying amount of goodwill was $1.0 billion at June 30, 2018 and December 31, 2017. On April 12, 2018, the Company announced the discontinuation of its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area. As a result, the Company recorded an impairment loss in the amount of $3.6 million within the Mortgage Banking segment in the second quarter of 2018. No impairment losses were recognized during the six months endedJune 30, 2017.

The following table presents the carrying amount of goodwill by segment for the six months endedJune 30, 2018 (in thousands):

	Banking		Leasing		Mortgage Banking			Total
Balance at beginning of period	$	959,285	$	40,640	$	3,623		$	1,003,548
Impairment	—		—		(3,623		)	(3,623		)
Balance at end of period	$	959,285	$	40,640	$	—		$	999,925

The Company has other intangible assets consisting of core deposit and client relationship intangibles that had a remaining weighted average amortization period of approximately 12 years as of June 30, 2018.

The following table presents the changes during the six months endedJune 30, 2018 in the carrying amount of core deposit and client relationship intangibles, and the gross carrying amount, accumulated amortization, and net book value as of June 30, 2018 (in thousands):

	June 30, 2018
Balance at beginning of period	$	54,766
Amortization expense	(3,798		)
Balance at end of period	$	50,968
Gross carrying amount	$	112,820
Accumulated amortization	(61,852		)
Net book value	$	50,968

The following presents the estimated future amortization expense of other intangible assets (in thousands):

Year ending December 31,	Amount
2018	$	3,653
2019	5,674
2020	5,022
2021	4,790
2022	3,806
Thereafter	28,023
	$	50,968

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Note 7. Deposits

The composition of deposits was as follows as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30,		December 31,
	2018		2017
Demand deposit accounts, non-interest bearing	$	6,347,208	$	6,381,512
NOW, money market, and interest bearing deposits	4,950,676		4,954,765
Savings accounts	1,181,078		1,167,810
Certificates of deposit, $250,000 or more	1,459,919		1,506,071
Other certificates of deposit	983,782		948,220
Total	$	14,922,663	$	14,958,378

Certificates of deposit of $250,000 or more included $1.1 billion of brokered deposits at June 30, 2018 and December 31, 2017.  Brokered deposits typically consist of smaller individual time certificates that have the same liquidity characteristics and yields consistent with time certificates of $250,000 or more.

Note 8. Short-Term Borrowings

Short-term borrowings were as follows as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	June 30, 2018				December 31, 2017
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
Customer repurchase agreements	0.55	%	$	244,462	0.27	%	$	232,789
Federal Home Loan Bank advances	2.13		400,000		1.31		625,000
Federal funds purchased	2.21		7,000		1.26		3,250
Line of credit	—		—		—		—
Total	1.53	%	$	651,462	1.03	%	$	861,039

Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date.  The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements.  All securities sold under agreements to repurchase are recorded on the face of the balance sheet. The Company pledges mortgage-backed securities as collateral for the repurchase agreements and may be required to provide additional collateral based on the fair value of those securities.

The Company had Federal Home Loan Bank ("FHLB") advances with a maturity date less than one year of $400.0 million at June 30, 2018 and $625.0 million at December 31, 2017. At June 30, 2018, the interest rate on the advances outstanding on that date had rates ranging from 1.35% to 2.35% with maturities from September 2018 to June 2019. The Company has loans pledged as collateral on these Federal Home Loan Bank advances. See Note 5. Loans.

On December 18, 2015, the Company entered into a $35.0 million unsecured line of credit at the holding company level with a correspondent bank. Interest was payable at a rate of one month LIBOR + 1.75%. No borrowings under the line of credit were outstanding as of June 30, 2018 and December 31, 2017. The line of credit matured on June 30, 2018.

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Note 9. Long-Term Borrowings

Long-term borrowings were as follows as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	June 30, 2018				December 31, 2017
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
Federal Home Loan Bank advances	2.52	%	$	478,096	1.73	%	$	231,317
Notes payable	4.57		79,196		4.14		90,807
Subordinated notes, net of issuance costs (1)	4.00		173,000		4.00		173,034
Term note	—		—		3.31		10,000
Total	3.09	%	$	730,292	2.97	%	$	505,158

⁽¹⁾  The amount decreased from December 31, 2017 as a result of an increase in issuance costs due to adjustments for actual costs.

The Company had Federal Home Loan Bank advances with remaining contractual maturities greater than one year of $478.1 million at June 30, 2018 and $231.3 million at December 31, 2017. As of June 30, 2018, the advances had interest rates ranging from 2.31% to 5.87% and maturities ranging from September 2019 to April 2035. The Company has loans pledged as collateral on these Federal Home Loan Bank advances. See Note 5. Loans.

The Company had notes payable to banks totaling $75.5 million and $76.3 million at June 30, 2018 and December 31, 2017, respectively, which as of June 30, 2018, were accruing interest at rates ranging from 2.25% to 7.25%, with a weighted average rate of 4.57%.  Lease investments includes equipment with an amortized cost of $92.8 million and $91.9 million at June 30, 2018 and December 31, 2017, respectively, that is pledged as collateral on these notes. The Company also had $3.7 million and $14.5 million at June 30, 2018 and December 31, 2017, respectively, in other secured borrowings (included in the notes payable above) with a weighted average rate of 4.56% as of June 30, 2018.

On August 24, 2016, the Company assumed a $16.0 million unsecured term loan at the holding company level with a correspondent bank through the merger of American Chartered Bancorp, Inc. ("American Chartered") with and into the Company on that date. Interest was payable at a rate of one month LIBOR + 1.75%, and the loan was to mature on June 30, 2020. Principal payments of $1.0 million were due quarterly until maturity. As of June 30, 2018, nothing was outstanding on this loan as it was prepaid in full in the first quarter of 2018.

On November 16, 2017, MB Financial Bank issued $175.0 million in 4.00% fixed-to-floating subordinated notes that mature on December 1, 2027. The subordinated notes bear a fixed interest rate of 4.00% until December 1, 2022 and a variable interest rate of three month LIBOR + 1.873% thereafter until maturity. The subordinated notes are callable on a semi-annual basis beginning on December 1, 2022.

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Note 10. Junior Subordinated Notes Issued to Capital Trusts

The Company has established statutory trusts for the sole purpose of issuing trust preferred securities and related trust common securities.  The proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust.  Concurrently with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities.  The Company’s outstanding trust preferred securities qualify, and are treated by the Company, as Tier 2 regulatory capital. Prior to the completion of the American Chartered merger, the trust preferred securities qualified, and were treated by the Company, as Tier 1 regulatory capital.  The Company owns all of the common securities of each trust.  The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment.

The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of June 30, 2018 (in thousands). Subsequent to June 30, 2018, the Company redeemed all of the outstanding junior subordinated notes held by Coal City Capital Trust I, which concurrently redeemed all of its outstanding trust preferred securities, and the Company called for redemption all of the outstanding junior subordinated notes held by TAYC Capital Trust II, which will concurrently redeem all of its outstanding trust preferred securities. See Note 18. Subsequent Events.

	Coal City Capital Trust I		MB Financial Capital Trust II		MB Financial Capital Trust III		MB Financial Capital Trust IV
Junior Subordinated Notes:
Principal balance	$	25,774	$	36,083	$	10,310	$	20,619
Annual interest rate	3-mo LIBOR + 1.80%		3-mo LIBOR + 1.40%		3-mo LIBOR + 1.50%		3-mo LIBOR + 1.52%
Stated maturity date	September 1, 2028		September 15, 2035		September 23, 2036		September 15, 2036
Call date	September 1, 2008		December 15, 2010		September 23, 2011		September 15, 2011
Trust Preferred Securities:
Face Value	$	25,000	$	35,000	$	10,000	$	20,000
Annual distribution rate	3-mo LIBOR + 1.80%		3-mo LIBOR + 1.40%		3-mo LIBOR + 1.50%		3-mo LIBOR + 1.52%
Issuance date	July 1998		August 2005		July 2006		August 2006
Distribution dates (1)	Quarterly		Quarterly		Quarterly		Quarterly

	MB Financial Capital Trust V		MB Financial Capital Trust VI		FOBB Statutory Trust III (2)		TAYC Capital Trust II (3)
Junior Subordinated Notes:
Principal balance	$	30,928	$	23,196	$	5,155	$	41,238
Annual interest rate	3-mo LIBOR + 1.30%		3-mo LIBOR + 1.30%		3-mo LIBOR + 2.80%		3-mo LIBOR + 2.68%
Stated maturity date	December 15, 2037		October 30, 2037		January 23, 2034		June 17, 2034
Call date	December 15, 2012		October 30, 2012		January 23, 2009		June 17, 2009
Trust Preferred Securities:
Face Value	$	30,000	$	22,500	$	5,000	$	40,000
Annual distribution rate	3-mo LIBOR + 1.30%		3-mo LIBOR + 1.30%		3-mo LIBOR + 2.80%		3-mo LIBOR + 2.68%
Issuance date	September 2007		October 2007		December 2003		June 2004
Distribution dates (1)	Quarterly		Quarterly		Quarterly		Quarterly

	American Chartered Statutory Trust II (4)
Junior Subordinated Notes:
Principal balance	$	10,310
Annual interest rate	3-mo LIBOR + 2.75%
Stated maturity date	October 7, 2034
Call date	October 7, 2009
Trust Preferred Securities:
Face Value	$	10,000
Annual distribution rate	3-mo LIBOR + 2.75%
Issuance date	August 2004
Distribution dates (1)	Quarterly

⁽¹⁾  All distributions are cumulative and paid in cash.

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⁽²⁾  FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBB”) prior to the Company's acquisition of FOBB in 2006, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition.

⁽³⁾  TAYC Capital Trust II was established by Taylor Capital Group, Inc. (“Taylor Capital”) prior to the Company's acquisition of Taylor Capital in 2014, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a remaining discount of $6.2 million at June 30, 2018.

⁽⁴⁾  American Chartered Statutory Trust II was established by American Chartered prior to the Company's acquisition of American Chartered in August 2016, and the junior subordinated notes issued by American Chartered to American Chartered Statutory Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with American Chartered Statutory Trust II do not include acquisition accounting adjustments to such amounts, which in each case resulted in a remaining discount of $2.6 million at June 30, 2018.

The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption.  Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes.  The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust.  The Company has the right to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above.  During any such deferral period, the Company may not pay cash dividends on its common or preferred stock and generally may not repurchase its common or preferred stock.

On March 19, 2018, the Company redeemed the junior subordinated notes held by American Chartered Statutory Trust I and, as a result, all of the issued and outstanding three month LIBOR + 3.60% American Chartered Statutory Trust I capital (preferred) securities were concurrently redeemed. The aggregate liquidation amount of these trust preferred securities was $20.0 million. American Chartered Statutory Trust I was established by American Chartered prior to the Company's acquisition of American Chartered, and the junior subordinated notes issued by American Chartered to American Chartered Statutory Trust I were assumed by the Company upon completion of the acquisition. As a result, the Company recognized a $3.1 million loss on extinguishment of debt in the first quarter of 2018.

Note 11. Commitments and Contingencies

Commitments: The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit, standby letters of credit, and commercial letters of credit.  Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments.  The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments.

At June 30, 2018 and December 31, 2017, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands):

	Contractual Amount
	June 30, 2018		December 31, 2017
Commitments to extend credit:
Home equity lines	$	185,528	$	203,922
Other commitments	4,084,835		4,073,044
Letters of credit:
Standby	165,960		161,014
Commercial	756		2,248

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee.  The commitments for home equity lines of credit may expire without being drawn upon.  Therefore, the total commitment amounts do not necessarily represent future cash requirements.  The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

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The Company, in the normal course of its business, regularly offers standby and commercial letters of credit to its bank customers.  Standby and commercial letters of credit are a conditional but irrevocable form of guarantee.  Under letters of credit, the Company typically guarantees payment to a third party beneficiary upon the default of payment or nonperformance by the bank customer and upon receipt of complying documentation from that beneficiary.

Both standby and commercial letters of credit may be issued for any length of time, but normally do not exceed a period of five years.  These letters of credit may also be extended or amended from time to time depending on the bank customer’s needs.  As of June 30, 2018, the maximum remaining term for any standby letters of credit was December 31, 2025.  A fee is charged to the bank customer and is recognized as income over the life of the letter of credit, unless considered non-rebatable under the terms of a letter of credit application.

At June 30, 2018, the aggregate contractual amount of these letters of credit, which represents the maximum potential amount of future payments that the Company would be obligated to pay, increased$3.4 million to $166.7 million from $163.3 million at December 31, 2017.  Of the $166.7 million in commitments outstanding at June 30, 2018, approximately $77.2 million of the letters of credit have been issued or renewed since December 31, 2017.

Letters of credit issued on behalf of bank customers may be done on either a secured or unsecured basis.  If a letter credit is secured, the collateral can take various forms including bank accounts, investments, fixed assets, inventory, accounts receivable or real estate.  The Company takes the same care in making credit decisions and obtaining collateral when it issues letters of credit on behalf of its customers as it does when making other types of loans.

As of June 30, 2018, the Company had approximately $3.2 million in capital expenditure commitments outstanding which relate to various projects to renovate the corporate office space and branches.

Concentrations of credit risk:  As of June 30, 2018, approximately 20% of our investments in securities issued by states and political subdivisions were within the state of Illinois.  We did not hold any direct exposure to the state of Illinois as of June 30, 2018. Our commitments to extend credit are primarily related to commercial credits.  Standby and commercial letters of credit are granted primarily to commercial borrowers. Our asset-based loans are made to borrowers located throughout the United States. Lease banking provides banking services to lessors located throughout the United States. Our leasing subsidiaries originate leases to companies located throughout the United States. In addition, our mortgage segment and indirect vehicle lenders originate loans to borrowers located throughout the United States.

Contingencies: In the normal course of business, the Company is involved in various legal proceedings.  In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company’s consolidated financial statements.

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Note 12. Fair Value Measurements

ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert expected future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process.

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Financial Instruments Recorded at Fair Value on a Recurring Basis

Securities Available for Sale. The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level 1. If quoted market prices are not available, the fair value is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level 2. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3. The change in fair value is recorded through an adjustment to the statement of other comprehensive income.

Marketable Equity Securities. The fair values of marketable equity securities are determined by quoted prices in active markets, when available, and classified as Level 1. The change in fair value is recorded through an adjustment to the statement of operations.

Loans Held for Sale. Mortgage loans originated and held for sale in the secondary market are carried at fair value.The fair value of loans held for sale is determined using quoted secondary market prices and classified as Level 2. The change in fair value is recorded through an adjustment to the statement of operations.

Loans. The Company has elected to record certain mortgage loans at fair value. The fair value of these loans is determined using quoted secondary market prices and classified as Level 2. The change in fair value is recorded through an adjustment to the statement of operations.

Mortgage Servicing Rights. The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies and cost to service. The assumptions used in the model are validated on a regular basis. The fair value is validated on a quarterly basis with an independent third party. Any material discrepancies between the internal model and the third party validation are investigated and resolved by an internal committee. Due to the nature of the valuation inputs, mortgage servicing rights are classified in Level 3 of the fair value hierarchy. The change in fair value is recorded through an adjustment to the statement of operations.

Assets Held in Trust for Deferred Compensation and Associated Liabilities.Assets held in trust for deferred compensation are recorded at fair value and included in “Other Assets” on the consolidated balance sheets. These assets are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. The change in fair value is recorded through an adjustment to the statement of operations.

Derivatives. Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative and classified as Level 2. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including LIBOR rate curves. The Company also obtains dealer quotations for these derivatives for comparative purposes to assess the reasonableness of the model valuations. In addition, the Company uses forward commitments to buy to-be-announced mortgage securities for which we do not intend to take delivery of the security and will enter into an offsetting position before physical delivery to lessen the price volatility of the mortgage servicing rights asset. Dealer quotations are used for these derivatives and are classified as Level 1. The Company also offers other derivatives, including foreign currency forward contracts and interest rate lock commitments, to our customers and offset our exposure from such contracts by purchasing other financial contracts, which are valued using market consensus prices. For certain interest rate lock commitments, the Company uses an external valuation model that relies on internally developed inputs to estimate the fair value of its interest rate lock commitments. This is based on unobservable inputs that reflect management’s assumptions and specific information about each borrower transaction and is classified in Level 3 of the hierarchy. The change in fair value is recorded through an adjustment to the statement of operations.

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The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2018
Financial assets
Securities available for sale:
U.S Government sponsored agencies and enterprises	$	5,026	$	—	$	5,026	$	—
States and political subdivisions	350,061		—		349,732		329
Residential mortgage-backed securities	1,205,579		—		1,205,566		13
Commercial mortgage-backed securities	63,424		—		63,424		—
Corporate bonds	23,170		—		23,170		—
Marketable equity securities	10,922		10,922		—		—
Loans held for sale	423,367		—		423,367		—
Loans	36,347		—		36,347		—
Mortgage servicing rights	296,629		—		—		296,629
Assets held in trust for deferred compensation	24,300		24,300		—		—
Derivative financial instruments	52,418		482		51,659		277
Financial liabilities
Other liabilities (1)	24,300		24,300		—		—
Derivative financial instruments	52,572		1,217		51,355		—
December 31, 2017
Financial assets
Securities available for sale:
U.S. Government sponsored agencies and enterprises	$	23,007	$	—	$	23,007	$	—
States and political subdivisions	379,325		—		378,996		329
Residential mortgage-backed securities	852,699		—		852,665		34
Commercial mortgage-backed securities	72,035		—		72,035		—
Corporate bonds	70,197		—		70,197		—
Equity securities	11,063		11,063		—		—
Loans held for sale	548,578		—		548,578		—
Loans	40,531		—		40,531		—
Mortgage servicing rights	276,279		—		—		276,279
Assets held in trust for deferred compensation	21,410		21,410		—		—
Derivative financial instruments	31,499		389		29,539		1,571
Financial liabilities
Other liabilities (1)	21,410		21,410		—		—
Derivative financial instruments	40,296		1,072		39,224		—

⁽¹⁾  Liabilities associated with assets held in trust for deferred compensation

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The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a recurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands):

	Fair Value at
	June 30, 2018		Valuation Technique	Unobservable Input	Range
States and political subdivisions	$	329	Discounted cash flows	Credit assumption	40% - 45% Loss
Residential mortgage-backed securities	13		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	296,629		Discounted cash flows	CPR	6.30% - 6.71%
				Discount rate	9.53 - 11.07
				Maturity (months)	326 - 358
				Delinquency rate	2.19 - 4.88
				Costs to service	$ 67 - $ 227
				Additive delinquent costs to service	$ 175 - $ 1,000
Derivative financial instruments (mortgage	277		Sales cash flows	Expected closing ratio	70% - 95%
interest rate lock commitments)				Expected delivery price	98.12 bps - 106.46 bps

	Fair Value at
	December 31, 2017		Valuation Technique	Unobservable Input	Range
States and political subdivisions	$	329	Discounted cash flows	Credit assumption	40-45% Loss
Residential mortgage-backed securities	34		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	276,279		Discounted cash flows	CPR	6.7% - 7.8%
				Discount rate	9.53 - 11.06
				Maturity (months)	324 - 358
				Delinquency rate	2.42 - 5.30
				Costs to service	$ 67 - $ 227
				Additive delinquent costs to service	$ 175 - $ 1,000
Derivative financial instruments (mortgage	1,571		Sales cash flows	Expected closing ratio	70% - 95%
interest rate lock commitments)				Expected delivery price	97.38 bps - 106.87 bps

The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights include prepayment speeds, discount rates, maturities, delinquencies and cost to service. Significant increases in prepayment speeds, discount rates, delinquencies or cost to service would result in a significantly lower fair value measurement. Conversely, significant decreases in prepayment speeds, discount rates, delinquencies or costs to service would result in a significantly higher fair value measurement. With the exception of changes in delinquencies, which can change the cost to service, the unobservable inputs move independently of each other.

Key economic assumptions used in the measuring of the fair value of the mortgage servicing rights and the sensitivity of the fair value to immediate adverse changes in those assumptions at June 30, 2018 are presented in the following table. This table does not take into account the derivatives used to economically hedge the mortgage servicing rights.

(dollars in thousands, except for weighted average cost to service)	June 30, 2018
Weighted average CPR	6.49		%
Impact on fair value of 10% adverse change	$	(8,581	)
Impact on fair value of 20% adverse change	(16,741		)
Weighted average discount rate	9.83		%
Impact on fair value of 10% adverse change	$	(12,630	)
Impact on fair value of 20% adverse change	(24,245		)
Weighted average delinquency rate	4.65		%
Impact on fair value of 10% adverse change	$	(3,657	)
Impact on fair value of 20% adverse change	(6,023		)
Weighted average costs to service	$	91.39
Impact on fair value of 10% adverse change	(5,534		)
Impact on fair value of 20% adverse change	(11,067		)

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The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the six months endedJune 30, 2018. The Company's policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels.

The following table presents additional information about financial assets measured at fair value on a recurring basis for which the Company used significant unobservable inputs (Level 3):

	Six Months Ended
	June 30,
	2018			2017			2018			2017			2018			2017
(in thousands)	Investment Securities						Mortgage Servicing Rights						Derivatives
Balance, beginning of period	$	363		$	544		$	276,279		$	238,011		$	1,571		$	3,160
Purchases	—			—			135			786			—			—
Originations	—			—			25,041			27,568			—			—
Included in earnings	—			—			(4,826		)	(16,677		)	(1,294		)	(461		)
Principal payments	(21		)	(82		)	—			—			—			—
Sales	—			—			—			—			—			—
Balance, ending of period	$	342		$	462		$	296,629		$	249,688		$	277		$	2,699

Financial Instruments Recorded at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period.

Impaired Loans.Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with ASC Topic 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. For a majority of impaired real estate loans where an allowance is established based on the fair value of collateral (100% at June 30, 2018), the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information.

Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value

The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include foreclosed assets and non-financial long-lived assets.

Other Real Estate and Repossessed Vehicles Owned (Foreclosed Assets). Foreclosed assets, upon initial recognition, are measured and reported at fair value through a charge-off to the allowance for loan and lease losses based upon the fair value of the foreclosed asset. The fair value of foreclosed assets, upon initial recognition, are estimated using Level 3 inputs based on customized discounting criteria.

Non-Financial Long-Lived Assets.  Non-financial long-lived assets, when determined to be impaired, are measured and reported at fair value using Level 3 inputs based on customized discounting criteria.

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Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2018
Financial assets:
Impaired loans	$	62,089	$	—	$	—	$	62,089
Non-financial assets:
Foreclosed assets	14,420		—		—		14,420
December 31, 2017
Financial assets:
Impaired loans	$	60,569	$	—	$	—	$	60,569
Non-financial assets:
Foreclosed assets	15,113		—		—		15,113

The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands):

	Fair Value at		Valuation
	June 30, 2018		Technique	Unobservable Input	Range
Impaired loans	$	62,089	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	14,420		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

	Fair Value at		Valuation
	December 31, 2017		Technique	Unobservable Input	Range
Impaired loans	$	60,569	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	15,113		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The estimated fair value approximates carrying value for cash and cash equivalents, accrued interest and the cash surrender value of life insurance policies. The methodologies for other financial assets and financial liabilities are discussed below:

The following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments:

Cash and due from banks and interest earning deposits with banks: The carrying amounts reported in the balance sheet approximate fair value.

Securities held to maturity: The fair values of securities held to maturity are determined by quoted prices in active markets, when available, and classified as Level 1. If quoted market prices are not available, the fair value is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level 2. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3.

Non-marketable securities - FHLB and FRB Stock: The carrying amounts reported in the balance sheet approximate fair value.

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Loans: The fair values for loans are estimated using discounted cash flow analyses, using the corporate bond curve adjusted for liquidity for commercial loans and the swap curve adjusted for liquidity for retail loans, including increased interest rate spreads to incorporate a credit mark, estimating an exit price.

Non-interest bearing deposits: The fair values disclosed are equal to their balance sheet carrying amounts, which represent the amount payable on demand.

Interest bearing deposits: The fair values disclosed for deposits with no defined maturities are equal to their carrying amounts, which represent the amounts payable on demand. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies the Company's current incremental borrowing rates for similar terms.

Short-term borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings with maturities of 90 days or less approximate their fair values.  The fair value of short-term borrowings greater than 90 days is based on the discounted value of contractual cash flows.

Long-term borrowings: The fair values of the Company's long-term borrowings (other than deposits) are estimated using discounted cash flow analyses, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements.

Junior subordinated notes issued to capital trusts: The fair values of the Company's junior subordinated notes issued to capital trusts are estimated based on the quoted market prices, when available, of the related trust preferred security instruments, or are estimated based on the quoted market prices of comparable trust preferred securities.

Accrued interest: The carrying amount of accrued interest receivable and payable approximate their fair values.

Off-balance-sheet instruments: Fair values for the Company’s off-balance-sheet lending commitments (guarantees, letters of credit and commitments to extend credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements.

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The estimated fair values of financial instruments are as follows (in thousands):

	June 30, 2018
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	$	373,448	$	373,448	$	373,448	$	—	$	—
Interest earning deposits with banks	119,672		119,672		119,672		—		—
Investment securities available for sale	1,647,260		1,647,260		—		1,646,918		342
Investment securities held to maturity	923,036		940,203		—		940,203		—
Marketable equity securities	10,922		10,922		10,922		—		—
Non-marketable securities - FHLB and FRB stock	115,453		115,453		—		—		115,453
Loans held for sale	423,367		423,367		—		423,367		—
Loans, net	13,657,455		13,728,529		—		36,347		13,692,182
Accrued interest receivable	65,129		65,129		65,129		—		—
Derivative financial instruments	52,418		52,418		482		51,659		277
Financial Liabilities:
Non-interest bearing deposits	$	6,347,208	$	6,347,208	$	6,347,208	$	—	$	—
Interest bearing deposits	8,575,455		8,563,444		—		—		8,563,444
Short-term borrowings	651,462		651,328		—		—		651,328
Long-term borrowings	730,292		731,194		—		—		731,194
Junior subordinated notes issued to capital trusts	194,450		163,817		—		—		163,817
Accrued interest payable	7,058		7,058		7,058		—		—
Derivative financial instruments	52,572		52,572		1,217		51,355		—

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	December 31, 2017
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	$	397,880	$	397,880	$	397,880	$	—	$	—
Interest earning deposits with banks	181,341		181,341		181,341		—		—
Investment securities available for sale	1,408,326		1,408,326		11,063		1,396,900		363
Investment securities held to maturity	959,082		992,455		—		992,455		—
Non-marketable securities - FHLB and FRB stock	114,111		114,111		—		—		114,111
Loans held for sale	548,578		548,578		—		548,578		—
Loans, net	13,808,352		13,988,392		—		40,531		13,947,861
Accrued interest receivable	63,589		63,589		63,589		—		—
Derivative financial instruments	31,499		31,499		389		29,539		1,571
Financial Liabilities:
Non-interest bearing deposits	$	6,381,512	$	6,381,512	$	6,381,512	$	—	$	—
Interest bearing deposits	8,576,866		8,569,368		—		—		8,569,368
Short-term borrowings	861,039		860,676		—		—		860,676
Long-term borrowings	505,158		513,725		—		—		513,725
Junior subordinated notes issued to capital trusts	211,494		170,965		—		—		170,965
Accrued interest payable	6,458		6,458		6,458		—		—
Derivative financial instruments	40,296		40,296		1,072		39,224		—

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Note 13. Stock Incentive Plans

ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such award.

The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Total compensation expense for share-based payment plans during the period	$	4,695	$	4,443	$	9,146	$	8,924
Amount of related income tax benefit recognized in income (1)	2,599		1,916		3,953		6,338

⁽¹⁾ Includes tax benefits recorded for the vesting of restricted shares and exercise of options.

The Company adopted the Omnibus Incentive Plan (the “Omnibus Plan”) in 1997.  On May 28, 2014, the Company’s stockholders approved the third amendment and restatement of the Omnibus Plan to add 3,100,000 authorized shares for a total of 11,400,000 shares of common stock authorized to be utilized in connection with awards under the Omnibus Plan to directors, officers, and employees of the Company or any of its subsidiaries. The number of shares authorized increased by 2,400,000 to 13,800,000 upon completion of the Taylor Capital merger.  Equity grants under the Omnibus Plan can be in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, and other stock-based awards.  Shares awarded in the form of restricted stock, restricted stock units, performance shares, performance units, or other stock-based awards generally will reduce the shares available under the Omnibus Plan on a 2-for-1 basis. No more than 10% of the total number of authorized shares may be issued with respect to awards granted after May 28, 2014, other than stock appreciation rights, stock options and performance-based awards, which at the date of grant are scheduled to fully vest prior to three years from the date of grant (although such awards may provide scheduled vesting earlier with respect to some of such shares and for acceleration of vesting as provided in the Omnibus Plan).  As of June 30, 2018, there were 2,114,097 shares available for future grants.

Annual equity-based incentive awards are generally granted to selected officers and employees in the first quarter of the year.  Options are granted with an exercise price equal to no less than the market price of the Company’s shares at the date of grant; those option awards generally vest over four years of service and have 10-year contractual terms.  Restricted shares and units typically vest over a two to four year period.  Equity awards may also be granted at other times throughout the year in connection with the recruitment and retention of officers and employees.  Directors currently may elect, in lieu of cash, to receive up to 70% of their fees in stock options with a five year term, which are fully vested on the grant date (provided that the director may not sell the underlying shares for at least six months after the grant date), and up to 100% of their fees in restricted shares, which vest one year after the grant date.

The following table summarizes changes in stock options for the six months endedJune 30, 2018:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of December 31, 2017	1,721,978		$	29.10	5.19
Granted	160,644		41.14
Exercised	(380,567	)	26.39
Expired	(1,092	)	39.28
Forfeited or cancelled	(9,411	)	28.93
Options outstanding as of June 30, 2018	1,491,552		$	31.08	6.11	$	23,303
Options exercisable as of June 30, 2018	989,220		$	28.19	4.99	$	18,313

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions.  Expected volatility is based on historical volatility and the expectations of future volatility of Company shares.  The risk free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the

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time of the grant.  The expected life of options is estimated based on historical employee behavior and represents the period of time that options granted are expected to remain outstanding.

 The following assumptions were used for options granted during the six months endedJune 30, 2018:

	June 30, 2018
Risk-free interest rate	2.80		%
Expected volatility of Company’s stock	26.13		%
Expected dividend yield	2.06		%
Expected life of options	5.9 years
Weighted average fair value per option of options granted during the year	$	9.65

The total intrinsic value of options exercised during the six months endedJune 30, 2018 and 2017 was $8.3 million and $3.9 million, respectively.

The following is a summary of changes in restricted shares and units for the six months endedJune 30, 2018:

	Number of Shares and Units		Weighted Average Grant Date Fair Value
Shares and units outstanding at December 31, 2017	973,201		$	37.03
Granted	414,895		41.45
Vested	(303,774	)	34.98
Forfeited or cancelled	(88,806	)	34.86
Shares and units outstanding at June 30, 2018	995,516		39.69

The total intrinsic value of restricted shares and units that vested during the six months endedJune 30, 2018 and 2017 was $12.8 million and $15.5 million, respectively.

The Company awarded 71,567, 65,476, and 80,780 market-based restricted stock units in 2018, 2017, and 2016, respectively, which entitle recipients to shares of common stock at the end of a three year vesting period. Recipients will earn shares, totaling between 0% and 175% of the number of units issued, based on the Company's total stockholder return relative to a specified peer group of financial institutions over the three year period. The Company awarded 71,560 market-based restricted stock units in 2015 that vested in 2018. The threshold performance for the units granted in 2015 was not met and, as a result, no shares were issued. The market-based restricted stock units are included in the preceding table as if the recipients earned shares equal to 100% of the units issued. A Monte Carlo simulation model was used to value the market-based restricted stock units at the time awarded.

As of June 30, 2018, there was $30.9 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share option and nonvested share awards) granted under the Omnibus Plan.  At June 30, 2018, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately two years.

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Note 14. Derivative Financial Instruments

The Company offers various derivatives, including interest rate swaps and foreign currency forward contracts, to its qualifying customers which can mitigate our exposure to market risk through the execution of off-setting positions with inter-bank dealer counterparties. This also permits the Company to offer customized risk management solutions to our customers. These customer accommodations and any offsetting financial contracts are treated as non-designated derivative instruments and carried at fair value through an adjustment to the statement of operations.

Interest rate swap and foreign currency forward contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. The net amount payable or receivable under interest rate swaps is accrued as an adjustment to interest income.  The net amount payable as of June 30, 2018 and December 31, 2017 was approximately $1 thousand.  The Company's credit exposure on interest rate swaps is limited to the Company's net favorable value and interest payments of all swaps to each counterparty. In such cases, collateral is generally required from the counterparties involved if the net value of the swaps exceeds a nominal amount.  At June 30, 2018, the Company’s credit exposure relating to interest rate swaps was approximately $17.7 million, which is secured by the underlying collateral on customer loans. 

The Company also enters into mortgage banking derivatives which are classified as non-designated hedging derivatives. These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale.

The Company had fair value commercial loan interest rate swaps, to hedge its interest rate risk, with an aggregate notional amount of $32 thousand at June 30, 2018.  For fair value hedges, the changes in fair values of both the hedging derivative and the hedged item were recorded in current earnings as other income.

Interest rate swaps, swaptions and treasury futures are used in order to lessen the price volatility of the mortgage servicing rights asset. The Company also uses forward commitments to buy to-be-announced ("TBA") mortgage securities for which the Company does not intend to take delivery of the security and will enter into an offsetting position before physical delivery to lessen the price volatility of the mortgage servicing rights asset. These derivatives are recorded at their fair value on the consolidated balance sheets in other assets with changes in fair value recorded on the consolidated statements of operations in mortgage banking revenue in non-interest income.

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The Company’s derivative financial instruments are summarized below as of June 30, 2018 and December 31, 2017 (in thousands):

	Asset Derivatives								Liability Derivatives
	June 30, 2018				December 31, 2017				June 30, 2018					December 31, 2017
	Notional		Estimated		Notional		Estimated		Notional		Estimated			Notional		Estimated
	Amount		Fair Value		Amount		Fair Value		Amount		Fair Value			Amount		Fair Value
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts (1)	$	—	$	—	$	—	$	—	$	32	$	(1	)	$	58	$	(1	)
Stand-alone derivative instruments: (2)
Interest rate swap contracts	1,732,420		34,477		1,563,109		21,217		1,732,420		(34,477		)	1,563,109		(21,217		)
Interest rate options contracts	510,228		3,818		372,927		1,887		510,157		(3,818		)	372,927		(1,887		)
Foreign exchange contracts	64,661		2,309		40,713		1,934		53,842		(2,006		)	34,029		(1,759		)
Spot foreign exchange contracts	10,135		18		1,424		23		11,823		(23		)	24		—
Mortgage related derivatives:
Interest rate swap contracts	270,000		10,983		458,000		4,479		320,000		(11,031		)	1,008,000		(14,360		)
Interest rate swaptions contracts	240,000		54		—		—		—		—			—		—
Treasury futures contracts	20,000		66		28,000		39		32,500		(105		)	30,000		(222		)
TBA mortgage securities	50,000		359		15,000		16		—		—			100,000		(63		)
Forward loan sale commitments	36,000		57		259,000		333		298,700		(1,111		)	483,500		(787		)
Interest rate lock commitments	66,093		277		404,557		1,571		—		—			—		—
Total stand-alone derivative instruments	2,999,537		52,418		3,142,730		31,499		2,959,442		(52,571		)	3,591,589		(40,295		)
Total	$	2,999,537	$	52,418	$	3,142,730	$	31,499	$	2,959,474	$	(52,572	)	$	3,591,647	$	(40,296	)

⁽¹⁾ Derivative instruments designated to hedge fixed-rate commercial real estate loans.

⁽²⁾ These portfolio swaps are not designated as hedging instruments under ASC Topic 815.

Amounts included in other operating income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts	$	1		$	1		$	1		$	2
Stand-alone derivative instruments:
Interest rate swap contracts	1,913			1,624			3,628			3,473
Interest rate options contracts	—			—			—			—
Foreign exchange contracts	212			197			255			260
Spot foreign exchange contracts	884			729			1,617			1,407
Mortgage related derivatives	(872		)	(301		)	(1,453		)	(10,442		)
Total stand-alone derivative instruments	2,137			2,249			4,047			(5,302		)
Total	$	2,138		$	2,250		$	4,048		$	(5,300	)

Methods and assumptions used by the Company in estimating the fair value of its interest rate swaps are discussed in Note 13 to consolidated financial statements.

Certain instruments and transactions subject to an agreement similar to a master netting arrangement are eligible for offset in the consolidated balance sheet. The instruments and transactions would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The Company’s derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. Under these agreements, there is generally a legally enforceable right to offset recognized amounts, and there may be an intention to settle such amounts on a net basis. The Company, however, does not generally offset such financial instruments for financial reporting purposes.

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Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of June 30, 2018 is summarized below (in thousands):

	Financial Assets						Financial Liabilities
	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized		Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
Derivatives:
Interest rate swap contracts, caps and floors	$	33,823	$	—	$	33,823	$	4,649	$	—	$	4,649
Foreign exchange contracts	1,338		—		1,338		966		—		966
Mortgage related derivatives	11,518		—		11,518		12,248		—		12,248
Total derivatives	46,679		—		46,679		17,863		—		17,863
Repurchase agreements	—		—		—		244,462		—		244,462
Total	$	46,679	$	—	$	46,679	$	262,325	$	—	$	262,325

	Financial Assets										Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral			Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	16,943	$	(11,030	)	$	—		$	5,913	$	11,030	$	(11,030	)	$	—		$	—
Counterparty B	9,885		(2,262		)	—			7,623		2,262		(2,262		)	—			—
Counterparty C	3,253		(492		)	(2,761		)	—		492		(492		)	—			—
Other counterparties	16,598		(531		)	(3,434		)	12,633		4,079		(531		)	(690		)	2,858
Total derivatives	46,679		(14,315		)	(6,195		)	26,169		17,863		(14,315		)	(690		)	2,858
Repurchase agreements	—		—			—			—		244,462		—			(244,462		)	—
Total	$	46,679	$	(14,315	)	$	(6,195	)	$	26,169	$	262,325	$	(14,315	)	$	(245,152	)	$	2,858

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2017 is summarized below (in thousands):

	Financial Assets						Financial Liabilities
	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized		Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
Derivatives:
Interest rate swap contracts, caps and floors	$	11,659	$	—	$	11,659	$	11,562	$	—	$	11,562
Foreign exchange contracts	1,013		—		1,013		953		—		953
Mortgage related derivatives	4,868		—		4,868		15,432		—		15,432
Total derivatives	17,540		—		17,540		27,947		—		27,947
Repurchase agreements	—		—		—		232,789		—		232,789
Total	$	17,540	$	—	$	17,540	$	260,736	$	—	$	260,736

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	6,068	$	(6,068	)	$	—	$	—	$	13,807	$	(6,068	)	$	(7,739	)	$	—
Counterparty B	3,261		(3,261		)	—		—		5,595		(3,261		)	(2,334		)	—
Counterparty C	5,285		(3,640		)	—		1,645		3,640		(3,640		)	—			—
Other counterparties	2,926		(1,750		)	—		1,176		4,905		(1,750		)	(3,150		)	5
Total derivatives	17,540		(14,719		)	—		2,821		27,947		(14,719		)	(13,223		)	5
Repurchase agreements	—		—			—		—		232,789		—			(232,789		)	—
Total	$	17,540	$	(14,719	)	$	—	$	2,821	$	260,736	$	(14,719	)	$	(246,012	)	$	5

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Note 15.   Operating Segments

The Company's operations currently consist of three reportable operating segments: Banking, Leasing, and Mortgage Banking. The Company offers different products and services through its three segments. The accounting policies of the segments are generally the same as those of the consolidated company.

The Banking Segment generates its revenues primarily from its lending, deposit gathering and fee business activities. The profitability of this segment's operations depends primarily on its net interest income after provision for credit losses, which is the difference between interest earned on interest earning assets and interest paid on interest bearing liabilities less provision for credit losses.  The provision for credit losses is almost entirely dependent on changes in the Banking Segment's loan portfolio and management’s assessment of the collectability of the loan portfolio as well as prevailing economic and market conditions.  The Banking Segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of depositors and other customers, federal deposit insurance funds and the banking system as a whole.  These laws and regulations govern such areas as capital, permissible activities, allowance for loan and lease losses, loans and investments, and rates of interest that can be charged on loans. 

The Leasing Segment generates its revenues through lease originations and related services. The Leasing Segment invests directly in equipment that the Company leases (referred to as direct finance, leveraged or operating leases) to "Fortune 1000," middle-market companies and health care providers located throughout the United States. The lease portfolio is made up of various kinds of equipment, generally technology related, such as computer systems, satellite equipment, medical equipment and general manufacturing, industrial, construction and transportation equipment. The Leasing Segment also specializes in selling third party equipment maintenance contracts to large companies.

The Mortgage Banking Segment originates residential mortgage loans for sale to investors and for the Company's portfolio through its retail and third party originator channels. This segment also services residential mortgage loans for various investors and for loans owned by the Company. The Mortgage Banking Segment is subject to an extensive system of laws and regulations that are intended primarily for the protection of customers. On April 12, 2018, the Company announced the discontinuation of its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area. The Company expects to stop operating its mortgage business as a defined segment with separate Mortgage Banking Segment reporting prior to the first quarter of 2019.

Net interest income for the Leasing and Mortgage Banking segments include adjustments based on the Company's internal funds transfer pricing model. Non-interest income for the Leasing Segment includes income on loans originated for the sole purpose of funding equipment purchases related to leases at the Company's lease subsidiaries.

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The following tables present summary financial information for the reportable segments (in thousands):

	Banking		Leasing		Mortgage Banking			Consolidated
Three months ended June 30, 2018
Net interest income	$	146,614	$	2,349	$	10,106		$	159,069
Provision for credit losses	5,746		500		(27		)	6,219
Non-interest income	46,716		22,651		18,939			88,306
Non-interest expense (1)	124,682		15,212		53,098			192,992
Income tax expense	15,009		1,052		(6,430		)	9,631
Net income	$	47,893	$	8,236	$	(17,596	)	$	38,533
Total assets	$	16,581,205	$	1,354,940	$	2,030,412		$	19,966,557
Three months ended June 30, 2017
Net interest income	$	135,982	$	2,345	$	10,667		$	148,994
Provision for credit losses	8,890		410		399			9,699
Non-interest income	43,491		18,180		29,499			91,170
Non-interest expense (1)	117,022		13,436		35,754			166,212
Income tax expense	15,662		2,525		1,600			19,787
Net income	$	37,899	$	4,154	$	2,413		$	44,466
Total assets	$	16,320,111	$	1,275,386	$	2,369,560		$	19,965,057

⁽¹⁾  Includes merger related and repositioning expenses of $5.5 million and $19.5 million in the Banking and Mortgage Banking Segment, respectively, for the three months ended June 30, 2018 and $7.2 million in the Banking Segment for the three months ended June 30, 2017.

	Banking		Leasing		Mortgage Banking			Consolidated
Six months ended June 30, 2018
Net interest income	$	287,085	$	4,831	$	20,534		$	312,450
Provision for credit losses	13,325		476		(74		)	13,727
Non-interest income	89,808		47,507		43,793			181,108
Non-interest expense (1)	240,510		30,708		89,660			360,878
Income tax expense	28,617		1,808		(6,762		)	23,663
Net income	$	94,441	$	19,346	$	(18,497	)	$	95,290
Total assets	$	16,581,205	$	1,354,940	$	2,030,412		$	19,966,557
Six months ended June 30, 2017
Net interest income	$	267,431	$	4,614	$	19,992		$	292,037
Provision for credit losses	12,417		275		741			13,433
Non-interest income	86,699		39,643		57,278			183,620
Non-interest expense (1)	225,538		27,280		69,736			322,554
Income tax expense	31,322		6,644		2,701			40,667
Net income	$	84,853	$	10,058	$	4,092		$	99,003
Total assets	$	16,320,111	$	1,275,386	$	2,369,560		$	19,965,057

⁽¹⁾  Includes merger related and repositioning expenses of $5.5 million and $20.1 million in the Banking and Mortgage Banking Segment, respectively, for the six months endedJune 30, 2018 and $7.4 million in the Banking Segment for the six months endedJune 30, 2017.

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Note 16.   Preferred Stock

On August 18, 2014, in connection with the Taylor Capital merger, the Company issued one share of its Perpetual Non-Cumulative Preferred Stock, Series A (“Company Series A Preferred Stock”), in exchange for each of the 4,000,000 outstanding shares of Taylor Capital’s Perpetual Non-Cumulative Preferred Stock, Series A. Holders of the Company Series A Preferred Stock were entitled to receive, when as and if declared by the Company’s board of directors, non-cumulative cash dividends on the liquidation preference amount, which was $25 per share, at a rate of 8.00% per annum, payable quarterly. The Company Series A Preferred Stock was included in Tier 1 capital for regulatory capital purposes. On February 15, 2018, the Company redeemed all of the 4,000,000 issued and outstanding shares of Company Series A Preferred Stock at a redemption price of $25.00 per share, or $100.0 million in the aggregate. The excess carrying amount of the Series A Preferred Stock in the amount of $15.3 million was retained in stockholders' equity and reflected as income available to common stockholders, which was included in the calculation of earnings per common share.

On November 22, 2017, the Company issued8,000,000depositary shares, each representing a 1/40th interest in a share of itsNon-Cumulative Preferred Stock, Series C (“Company Series C Preferred Stock”). Holders of the Company Series C Preferred Stock are entitled to receive, when as and if declared by the Company's board of directors, non-cumulative cash dividends on the liquidation preference, which is $25 per depositary share (equivalent to $1,000 per share of preferred stock), at a rate of 6.00% per annum, payable quarterly. The Company Series C Preferred Stock is included in Tier 1 capital for regulatory capital purposes and is redeemable at the option of the Company at a redemption price of $25 per depositary share, plus any declared and unpaid dividends, (i) in whole or in part from time to time, on any dividend payment date on or after November 25, 2022, and (ii) in whole but not in part prior to November 25, 2022, within 90 days following a “regulatory capital treatment event,” as defined in the terms of the Company Series C Preferred Stock. The Company must receive the approval of the Federal Reserve Board prior to any redemption of the Company Series C Preferred Stock.

Note 17. Definitive Merger Agreement

On May 20, 2018, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Fifth Third Bancorp, an Ohio corporation ("Fifth Third"), and its wholly-owned subsidiary, Fifth Third Financial Corporation, an Ohio corporation ("Intermediary"). The Merger Agreement provides for the combination of the Company and Fifth Third, either through the merger of the Company with and into Intermediary, with Intermediary as the surviving corporation (the "Direct Merger"), or through the merger of a newly formed subsidiary of Fifth Third with and into the Company, with the Company as the surviving corporation (the "Alternative Merger" and collectively with the Direct Merger, the "Merger"). Only if the Direct Merger is not approved by the holders of the Company Series C Preferred Stock will the Alternative Merger occur instead of the Direct Merger, if the holders of the Company's common stock ("Company Common Stock") approve the Merger and the Charter Amendment (as defined and described below).

At the effective time of the Merger (the "Effective Time"), each outstanding share of Company Common Stock will be converted into the right to receive (i) 1.45 shares of Fifth Third common stock ("Fifth Third Common Stock"), and (ii) $5.54 in cash (collectively, the "Merger Consideration"). In addition, if the Direct Merger is approved by the holders of Company Series C Preferred Stock, each share of Company Series C Preferred Stock will be converted into the right to receive one share of a newly created series of preferred stock of Fifth Third, having substantially the same terms as the Company Series C Preferred Stock, except that the new series of preferred stock will have no voting rights (including upon an arrearage in the payment of dividends thereon) except as required by Ohio law and have certain other differences consistent with Fifth Third’s currently outstanding series of preferred stock and its articles of incorporation. If the Direct Merger is not approved by the holders of Company Series C Preferred Stock, then the Alternative Merger will occur instead of the Direct Merger, in which case the holders of Company Common Stock will receive the same Merger Consideration as described above, but the Company Series C Preferred Stock will not be converted into a share of new Fifth Third preferred stock and will instead remain outstanding and unchanged (except as modified by the Charter Amendment) as preferred stock of the Company, which will be a subsidiary of Fifth Third.

Pursuant to an amendment to the Company's charter (the "Charter Amendment"), effective immediately prior to consummation of the Alternative Merger, the holders of Company Series C Preferred Stock will have the right to vote with the holders of Company Common Stock as a single class on all matters submitted to a vote of such common stockholders. Upon completion of the Alternative Merger, Fifth Third, as the sole holder of Company Common Stock, will control the Company. Following completion of the Alternative Merger, the holders of Company Series C Preferred Stock will vote with Fifth Third as a single class on all matters submitted to a vote of Fifth Third, as the sole common stockholder of the Company. Thus, the voting rights that would be conferred upon the holders of Company Series C Preferred Stock by the Charter Amendment would continue to apply with respect to the Company, and not Fifth Third, following completion of the Alternative Merger.

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At the Effective Time, each option granted by the Company to purchase shares of Company Common Stock (the "Company Options") will be converted into an option to purchase shares of Fifth Third Common Stock on the same terms and conditions as were applicable to such Company Options prior to the Merger, subject to certain adjustments to the exercise price and the number of shares of Fifth Third Common Stock issuable upon exercise of such option in accordance with the Merger Agreement. In addition, each Company restricted stock award, restricted stock unit and performance-based award (the "Company Equity Awards") that remains unvested and would not automatically vest by its terms at the Effective Time will be assumed by Fifth Third and converted into a number of shares of Fifth Third Common Stock (the "Assumed Equity Awards") with such shares being subject to certain adjustments in accordance with the Merger Agreement but otherwise remaining subject to the same terms and conditions as applicable immediately prior to such conversion. Each Company Equity Award that is outstanding immediately prior to the Effective Time that is not assumed under the Merger Agreement will be cancelled and converted automatically into the right to receive the Merger Consideration.

The Merger is subject to regulatory approvals, approval by the Company's stockholders, and certain other customary closing conditions.

Note 18. Subsequent Events

On August 6, 2018, the Company redeemed the junior subordinated notes held by Coal City Capital Trust I and, as a result, all of the issued and outstanding three month LIBOR + 1.80% Coal City Capital Trust I capital (preferred) securities were concurrently redeemed. The aggregate liquidation amount of these trust preferred securities was $25.0 million.

On September 17, 2018, the Company will redeem the junior subordinated notes held by TAYC Capital Trust II and, as a result, all of the issued and outstanding three month LIBOR + 2.68% TAYC Capital Trust II capital (preferred) securities will be concurrently redeemed. The aggregate liquidation amount of these trust preferred securities is $40.0 million.

For additional information regarding these securities, see Note 10. Junior Subordinated Notes Issued to Capital Trusts.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion and analysis of MB Financial, Inc.’s financial condition and results of operations and should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. The words “the Company,” “we,” “our” and “us” refer to MB Financial, Inc. and its consolidated subsidiaries, unless we indicate otherwise.

Overview

The profitability of our operations depends primarily on our net interest income after provision for credit losses, which is the difference between interest earned on interest earning assets and interest paid on interest bearing liabilities less provision for credit losses.  The provision for credit losses is dependent on changes in our loan portfolio and management’s assessment of the collectability of our loan portfolio as well as prevailing economic and market conditions.  

Our net income is also affected by non-interest income and non-interest expenses.  During the periods under report, non-interest income included revenue from our key fee initiatives: net lease financing revenue, treasury management fees, wealth management fees, card fees and capital markets and international banking fees. Non-interest income also included mortgage banking revenue, consumer and other deposit service fees, brokerage fees, loan service fees, increase in cash surrender value of life insurance, net gain (loss) on investment securities, net loss on disposal of other assets, and other operating income. During the periods under report, non-interest expenses included salaries and employee benefits expense, occupancy and equipment expense, computer services and telecommunication expense, advertising and marketing expense, professional and legal expense, other intangibles amortization expense, branch exit and facilities impairment charges, net loss on other real estate owned and other related expenses, loss on extinguishment of debt, and other operating expenses. Additionally, dividends on preferred shares reduced net income available to common stockholders, which, as discussed below, was more than offset during the six months ended June 30, 2018 by a return from preferred stockholders resulting from the redemption during that period of our 8% Series A non-cumulative perpetual preferred stock.

Net interest income is affected by changes in the volume and mix of interest earning assets, interest earned on those assets, the volume and mix of interest bearing liabilities and interest paid on interest bearing liabilities. Non-interest income and non-interest expenses are impacted by growth of operations and growth in the number of loan and deposit accounts through both acquisitions and core banking and leasing business growth. Growth in operations affects other expenses primarily as a result of additional employee, branch facility and promotional marketing expense. Growth in the number of loan and deposit accounts affects other income, including service fees as well as other expenses such as computer services, supplies, postage, telecommunications and other miscellaneous expenses. Non-performing asset levels impact salaries and benefits, legal expenses and other real estate owned expenses.

On April 12, 2018, the Company announced the discontinuation of its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area. As a result, the Company expects to incur one-time pre-tax costs of approximately $37 to $41 million during 2018, of which approximately $19 million were incurred in the second quarter of 2018, and to stop operating its mortgage business as a defined segment with separate Mortgage Banking Segment reporting prior to the first quarter of 2019. The first phase of staff reductions was completed in early July 2018. The Company plans to continue originating residential mortgage loans in the greater Chicago area through its mortgage retail offices, retain the mortgage servicing asset as well as its mortgage servicing operation in Wilmington, Ohio, and continue holding residential mortgages on its balance sheet.

On May 20, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Fifth Third Bancorp, an Ohio corporation (“Fifth Third”), and its wholly-owned subsidiary, Fifth Third Financial Corporation, an Ohio corporation (“Intermediary”). The Merger Agreement provides that upon the terms and subject to the conditions set forth therein, the Company will merge with a subsidiary of Fifth Third. The transaction is subject to regulatory approvals, approval by the Company’s stockholders and certain other customary closing conditions. For additional information, see Note 17 of the notes to consolidated financial statements in Part I, Item 1 of this report.

The Company had net income of $38.5 million for the three months ended June 30, 2018 compared to $44.5 million for the three months ended June 30, 2017. Net income available to common stockholders was $35.5 million for the three months ended June 30, 2018 compared to $42.5 million for the three months ended June 30, 2017. Fully diluted earnings per common share were $0.42 for the three months ended June 30, 2018 compared to $0.50 per common share for the three months ended June 30, 2017.

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The results of operations for the three months ended June 30, 2018 and 2017 were impacted by $24.9 million and $7.2 million in merger related and repositioning expenses, respectively. For the second quarter of 2018, $19.5 million related to the discontinuation of our national mortgage origination business and $5.5 million related to the pending merger with Fifth Third. See "Non-interest Expenses" section for a detailed schedule of merger related and repositioning expenses.

The Company had net income of $95.3 million for the six months endedJune 30, 2018 compared to $99.0 million for the six months endedJune 30, 2017. Net income available to common stockholders was $104.5 million for the six months endedJune 30, 2018 compared to $95.0 million for the six months endedJune 30, 2017. Fully diluted earnings per common share were $1.23 for the six months endedJune 30, 2018 compared to $1.12 per common share for the six months endedJune 30, 2017. Net income available to common stockholders and diluted earnings per common share in the first half 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 all $100.0 million 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 results of operations for the six months endedJune 30, 2018 and 2017 were impacted by $25.6 million and $7.4 million in merger related and repositioning expenses, respectively. For the six months endedJune 30, 2018, $19.5 million related to the discontinuation of our national mortgage origination business and $5.5 million related to the pending merger with Fifth Third. The results of operations for the six months endedJune 30, 2018 were also impacted by the $3.1 million loss on extinguishment of debt due to the redemption of the junior subordinated notes held by American Chartered Statutory Trust I, which resulted in the concurrent redemption of all of the issued and outstanding three month LIBOR + 3.60% American Chartered Statutory Trust I capital (preferred) securities. The aggregate liquidation amount of these trust preferred securities was $20.0 million. See "Non-interest Expenses" section for a detailed schedule of merger related and repositioning expenses.

Critical Accounting Policies

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which we operate.  This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes.  These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements.  Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and, as such, have a greater possibility of producing results that could be materially different than originally expected.  Management believes the following policies are both important to the portrayal of our financial condition and results of operations and require subjective or complex judgments; therefore, management considers the following to be critical accounting policies.  Management has reviewed the application of these polices with the Audit Committee of our Board of Directors.

Allowance for Loan and Lease Losses.  The allowance for loan and lease losses is subject to the use of estimates, assumptions, and judgments in management's evaluation process used to determine the adequacy of the allowance for loan and lease losses, which combines several factors: management's ongoing review and grading of the loan portfolio, consideration of past loan loss experience, trends in past due and non-performing loans, risk characteristics of the various classifications of loans, existing economic conditions, the fair value of underlying collateral, and other qualitative and quantitative factors which could affect probable credit losses. Because current economic conditions can change and future events are inherently difficult to predict, the anticipated amount of estimated loan losses, and therefore the adequacy of the allowance, could change significantly. As an integral part of their examination process, various regulatory agencies also review the allowance for loan and lease losses. Such agencies may require that certain loan balances be charged off when their credit evaluations differ from those of management or require that adjustments be made to the allowance for loan and lease losses, based on their judgments about information available to them at the time of their examination. We believe the allowance for loan and lease losses is appropriate and properly recorded in the financial statements.  See “Allowance for Loan and Lease Losses” section below for further analysis.

Residual Value of Our Direct Finance, Leveraged, and Operating Leases.  Lease residual value represents the present value of the estimated fair value of the leased equipment at the termination date of the lease.  Realization of these residual values depends on many factors, including management’s use of estimates, assumptions, and judgment to determine such values.  Several other factors outside of management’s control may reduce the residual values realized, including general market conditions at the time of expiration of the lease, whether there has been technological or economic obsolescence or unusual wear and tear on, or use of, the equipment and the cost of comparable equipment.  If, upon the expiration of a lease, we sell the equipment and the amount realized is less than the recorded value of the residual interest in the equipment, we will recognize a loss reflecting the difference.  On a quarterly basis, management reviews the lease residuals for potential impairment.  If we fail to realize our aggregate recorded residual values, our financial condition and profitability could be adversely affected. The aggregate residual value of the equipment leased under our direct finance, leveraged, and operating leases totaled $195.5 million at June 30, 2018 and $214.3 million at

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December 31, 2017.  See Note 1 and Note 6 to the audited consolidated financial statements contained in our Annual Report Form 10-K for the year ended December 31, 2017 for additional information.

Income Tax Accounting.  ASC Topic 740 provides guidance on accounting for income taxes by prescribing the minimum recognition threshold that a tax position must meet to be recognized in the financial statements. ASC Topic 740 also provides guidance on measurement, recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  As of June 30, 2018, the Company had $113 thousand in uncertain tax positions.  The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense.  However, interest and penalties imposed by taxing authorities on issues specifically addressed in ASC Topic 740 will be taken out of the tax reserves up to the amount allocated to interest and penalties.  The amount of interest and penalties exceeding the amount allocated in the tax reserves will be treated as income tax expense.  The application of income tax law is inherently complex.  Laws and regulations in this area are voluminous and are often ambiguous.  As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures.  Interpretations of, and guidance surrounding income tax laws and regulations change over time.  As such, changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of operations.

Fair Value of Assets and Liabilities.  ASC Topic 820 defines fair value as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date.

The degree of management judgment involved in determining the fair value of assets and liabilities is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not fully available, management judgment is necessary to estimate fair value. In addition, changes in market conditions may reduce the availability of quoted prices or observable data. For example, reduced liquidity in the capital markets or changes in secondary market activities could result in observable market inputs becoming unavailable. Therefore, when market data is not available, the Company would use valuation techniques requiring more management judgment to estimate the appropriate fair value measurement. 

See Note 12 to the consolidated financial statements in Part I, Item 1 of this report for a complete discussion on the Company’s use of fair valuation of assets and liabilities and the related measurement techniques.

Goodwill.  The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit and client relationship intangibles, consists of goodwill.  See Note 6 to the consolidated financial statements in Part I, Item 1 of this report for further information regarding core deposit and client relationship intangibles.  The Company reviews goodwill to determine potential impairment annually, or more frequently if events and circumstances indicate that goodwill might be impaired, by comparing the carrying value of the reporting units with the fair value of the reporting units.

The Company’s annual assessment date for goodwill impairment testing is as of December 31. Goodwill is tested for impairment at the reporting unit level. The Company currently has three reporting units: Banking, Leasing, and Mortgage Banking.  The carrying amount of goodwill was $1.0 billion at June 30, 2018 and December 31, 2017. On April 12, 2018, the Company announced the discontinuation of its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area. As a result, the Company recorded an impairment loss in the amount of $3.6 million within the Mortgage Banking segment in the second quarter of 2018. No impairment losses were recognized during the six months endedJune 30, 2017.

Value of Mortgage Servicing Rights. The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Purchased mortgage servicing rights are recorded at the purchase price at the date of purchase and at fair value thereafter.

Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies and cost to service. The assumptions used in the valuation model are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party. Material discrepancies between the internal valuation and the third party valuation are analyzed, and an internal committee determines whether or not an adjustment is required.

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The Company has elected to account for mortgage servicing rights using the fair value option. Changes in the fair value are recognized in mortgage banking revenue on the Company's Consolidated Statements of Operations.

Recent Accounting Pronouncements.  Refer to Note 2 of our consolidated financial statements for a description of recent accounting pronouncements including the respective dates of adoption and anticipated effects on results of operations and financial condition.

Net Interest Income

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest earning assets and the related yields, as well as the interest expense on average interest bearing liabilities, and the related costs, expressed both in dollars and rates (dollars in thousands).  The table below and the discussion that follows contain presentations of net interest income and net interest margin on a tax-equivalent basis, which is adjusted for the tax-favored status of income from certain loans and investments.  We believe this measure to be the preferred industry measurement of net interest income, as it provides a relevant comparison between taxable and non-taxable amounts. The table below and the discussion that follows also contains presentations of net interest margin on a tax equivalent basis excluding the effect of acquisition accounting discount accretion on loans acquired through the American Chartered and Taylor Capital mergers ("bank mergers").

Reconciliations of net interest income and net interest margin on a tax-equivalent basis and net interest margin on a tax-equivalent basis excluding the effect of acquisition accounting discount accretion on loans acquired through the bank mergers to net interest income and net interest margin in accordance with accounting principles generally accepted in the United States of America are provided in the table. For additional information, see "Non-GAAP Financial Information."

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	Three Months Ended June 30,
(dollars in thousands)	2018						2017
	Average				Yield/		Average				Yield/
	Balance		Interest		Rate		Balance		Interest		Rate
Interest Earning Assets:
Loans held for sale	$	573,444	$	5,429	3.79	%	$	585,207	$	5,434	3.71	%
Loans (1) (2)	13,560,785		158,971		4.65		12,850,707		137,992		4.26
Loans exempt from federal income taxes (3)	278,238		2,950		4.19		354,706		4,294		4.79
Taxable investment securities	1,510,287		10,579		2.80		1,539,432		8,717		2.26
Investment securities exempt from federal income taxes (3)	1,222,531		11,948		3.91		1,263,213		15,134		4.79
Federal funds sold	265		2		2.17		145		1		1.37
Other interest earning deposits	129,274		242		0.75		87,549		227		1.04
Total interest earning assets	17,274,824		$	190,121	4.37		16,680,959		$	171,799	4.10
Non-interest earning assets	2,882,363						2,708,504
Total assets	$	20,157,187					$	19,389,463
Interest Bearing Liabilities:
Deposits:
NOW, money market and interest bearing deposits	$	4,878,700	$	7,647	0.63	%	$	4,506,765	$	3,284	0.29	%
Savings deposits	1,209,360		886		0.29		1,113,159		244		0.09
Time deposits	2,493,726		8,853		1.42		2,138,021		5,265		0.99
Short-term borrowings	737,718		2,769		1.51		1,697,212		3,912		0.92
Long-term borrowings and junior subordinated notes	997,203		7,768		3.07		520,241		3,300		2.47
Total interest bearing liabilities	10,316,707		$	27,923	1.08		9,975,398		$	16,005	0.64
Non-interest bearing deposits	6,414,450						6,336,151
Other non-interest bearing liabilities	490,314						451,071
Stockholders’ equity	2,935,716						2,626,843
Total liabilities and stockholders’ equity	$	20,157,187					$	19,389,463
Net interest income/interest rate spread (4)			$	162,198	3.29	%			$	155,794	3.46	%
Less: taxable equivalent adjustment			3,129						6,800
Net interest income, as reported			$	159,069					$	148,994
Net interest margin (5)					3.66	%					3.55	%
Tax equivalent effect					0.07	%					0.16	%
Net interest margin on a fully tax equivalent basis (non-GAAP) (5)					3.73	%					3.71	%
Effect of acquisition accounting discount accretion on loans acquired through bank mergers					(0.11	)%					(0.17	)%
Net interest margin on a fully tax equivalent basis, excluding the effect of acquisition accounting discount accretion on loans acquired through bank mergers (non-GAAP) (5)					3.62	%					3.54	%

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

(2)       Interest income includes amortization of net 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.

Net interest income on a fully tax equivalent basis increased$6.4 million during the three months ended June 30, 2018 compared to the three months ended June 30, 2017 due to higher average loan balances and higher loan yields partly offset by higher funding costs. The average yield on loans increased as a result of an increase in short-term rates.

The net interest margin, expressed on a fully tax equivalent basis, was 3.73% for the second quarter of 2018 and 3.71% for the second quarter of 2017. Net interest income in the second quarter of 2018 included interest income of $4.5 million resulting from the accretion of the acquisition accounting discount recorded on loans acquired in bank mergers compared to $6.7 million in the second quarter of 2017. Excluding the accretion of the acquisition accounting discount recorded on loans acquired in bank mergers, our net interest margin on a fully tax equivalent basis would have been 3.62% and 3.54% for the three months ended June 30, 2018 and June 30, 2017, respectively. The increase in our net interest margin on a fully tax equivalent basis was due to higher loan yields and a favorable mix in liabilities partly offset by increased funding costs and a lower tax benefit on municipal investment securities and tax exempt loans as a result of the H.R. 1, originally known as the "Tax Cuts and Jobs Act" (the "TCJ Act"), which was enacted in the fourth quarter of 2017.

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	Six Months Ended June 30,
(dollars in thousands)	2018						2017
	Average				Yield/		Average				Yield/
	Balance		Interest		Rate		Balance		Interest		Rate
Interest Earning Assets:
Loans held for sale	$	559,495	$	9,860	3.52	%	$	575,223	$	10,467	3.64	%
Loans (1) (2)	13,595,255		311,659		4.57		12,578,441		266,696		4.23
Loans exempt from federal income taxes (3)	276,986		5,824		4.18		367,257		8,724		4.72
Taxable investment securities	1,387,964		18,513		2.67		1,566,172		17,839		2.28
Investment securities exempt from federal income taxes (3)	1,224,415		23,943		3.91		1,270,640		30,478		4.80
Federal funds sold	169		2		2.09		92		1		1.34
Other interest earning deposits	127,323		373		0.59		108,932		426		0.79
Total interest earning assets	17,171,607		$	370,174	4.30		16,466,757		$	334,631	4.05
Non-interest earning assets	2,876,869						2,730,533
Total assets	$	20,048,476					$	19,197,290
Interest Bearing Liabilities:
Deposits:
NOW and money market deposit	$	4,875,120	$	13,967	0.58	%	$	4,518,021	$	5,906	0.26	%
Savings deposit	1,209,103		1,703		0.28		1,122,407		499		0.09
Time deposits	2,476,119		16,748		1.36		2,099,536		9,863		0.95
Short-term borrowings	803,851		5,285		1.33		1,597,339		6,292		0.79
Long-term borrowings and junior subordinated notes	887,980		13,770		3.07		521,122		6,313		2.38
Total interest bearing liabilities	10,252,173		$	51,473	1.01		9,858,425		$	28,873	0.59
Non-interest bearing deposits	6,354,286						6,273,127
Other non-interest bearing liabilities	493,595						458,039
Stockholders’ equity	2,948,422						2,607,699
Total liabilities and stockholders’ equity	$	20,048,476					$	19,197,290
Net interest income/interest rate spread (4)			$	318,701	3.29	%			$	305,758	3.46	%
Less: taxable equivalent adjustment			6,251						13,721
Net interest income, as reported			$	312,450					$	292,037
Net interest margin (5)					3.63	%					3.54	%
Tax equivalent effect					0.07	%					0.16	%
Net interest margin on a fully tax equivalent basis (non-GAAP) (5)					3.70	%					3.70	%
Effect of acquisition accounting discount accretion on loans acquired through bank mergers					(0.12	)%					(0.18	)%
Net interest margin on a fully tax equivalent basis, excluding the effect of acquisition accounting discount accretion on loans acquired through bank mergers (non-GAAP)					3.58	%					3.52	%

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

(2)       Interest income includes amortization of net 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.

Net interest income on a fully tax equivalent basis increased$12.9 million during the six months endedJune 30, 2018 compared to the six months endedJune 30, 2017. This increase was due to higher average loan balances and higher loan yields partly offset by higher funding costs.

The net interest margin, expressed on a fully tax equivalent basis, was 3.70% for the six months endedJune 30, 2018 and 2017. Net interest income in the six months endedJune 30, 2018 included interest income of $9.2 million resulting from the accretion of the acquisition accounting discount recorded on loans acquired in bank mergers compared to $13.9 million in the same period of 2017. Excluding the accretion of the acquisition accounting discount recorded on loans acquired in bank mergers, our net interest margin on a fully tax equivalent basis would have been 3.58% and 3.52% for the six months endedJune 30, 2018 and 2017, respectively. The increase in our net interest margin on a fully tax equivalent basis was due to higher loan yields partly offset by increased funding costs and a lower tax benefit on municipal investment securities and tax exempt loans as a result of the TCJ Act.

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Non-interest Income

The following table presents non-interest income for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 (in thousands):

	Three Months Ended
	June 30,
	2018			2017			Increase/ (Decrease)			Percentage Change
Non-interest income:
Mortgage banking revenue	$	18,926		$	30,152		$	(11,226	)	(37.2	)%
Lease financing revenue, net	22,918			18,401			4,517			24.5
Treasury management fees	15,066			14,499			567			3.9
Wealth management fees	8,969			8,498			471			5.5
Card fees	5,654			4,413			1,241			28.1
Capital markets and international banking fees	3,785			3,586			199			5.5
Consumer and other deposit service fees	2,929			3,285			(356		)	(10.8	)
Brokerage fees	1,050			1,250			(200		)	(16.0	)
Loan service fees	2,148			2,037			111			5.4
Increase in cash surrender value of life insurance	1,272			1,301			(29		)	(2.2	)
Net (loss) gain on investment securities	(86		)	137			(223		)	(162.8	)
Net loss on disposal of other assets	(397		)	(4		)	(393		)	NM
Other operating income	6,072			3,615			2,457			68.0
Total non-interest income	$	88,306		$	91,170		$	(2,864	)	(3.1	)%

NM - Not meaningful

Non-interest income decreased by $2.9 million, or 3.1%, for the three months ended June 30, 2018 compared to the three months ended June 30, 2017.

• Mortgage banking revenue decreased due to lower mortgage origination volume as a result of the discontinuation of the national mortgage origination business in the second quarter of 2018.

• Lease financing revenue increased due to higher residual gains and promotional income partly offset by lower fees from the sale of third-party equipment maintenance contracts.

• Card fees increased due to higher prepaid card fees and credit card fees as a result of increased sales and volume.

• Other operating income increased as a result of stronger earnings from investments in Small Business Investment Companies.

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The following table presents non-interest income for the six months endedJune 30, 2018 compared to the six months endedJune 30, 2017 (in thousands):

	Six Months Ended
	June 30,
	2018			2017			Increase/ (Decrease)			Percentage Change
Non-interest income:
Mortgage banking revenue	$	43,973		$	58,608		$	(14,635	)	(25.0	)%
Lease financing revenue, net	47,628			39,819			7,809			19.6
Treasury management fees	30,222			29,188			1,034			3.5
Wealth management fees	18,090			17,018			1,072			6.3
Card fees	10,441			8,979			1,462			16.3
Capital markets and international banking fees	6,783			6,839			(56		)	(0.8	)
Consumer and other deposit service fees	5,841			6,648			(807		)	(12.1	)
Brokerage fees	1,914			2,375			(461		)	(19.4	)
Loan service fees	4,393			4,006			387			9.7
Increase in cash surrender value of life insurance	2,380			2,589			(209		)	(8.1	)
Net (loss) gain on investment securities	(260		)	368			(628		)	(170.7	)
Net loss on sale of assets	(754		)	(127		)	(627		)	493.7
Other operating income	10,457			7,310			3,147			43.1
Total non-interest income	$	181,108		$	183,620		$	(2,512	)	(1.4	)%

Non-interest income decreased by $2.5 million, or 1.4%, for the six months endedJune 30, 2018 compared to the six months endedJune 30, 2017.

• Mortgage banking revenue decreased due to lower mortgage origination volume as a result of the discontinuation of the national mortgage origination business.

• Lease financing revenue increased due to higher residual gains and promotional income.

• Treasury management fees increased due to increased corporate treasury management services.

• Wealth management fees increased due to the addition of new customers.

• Card fees increased due to higher prepaid card fees and credit card fees as a result of increased sales and volume.

• Other operating income increased as a result of stronger earnings from investments in Small Business Investment Companies.

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Non-interest Expenses

The following table presents non-interest expense for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 (in thousands):

	Three Months Ended
	June 30,
	2018		2017		Increase/ (Decrease)			Percentage Change
Non-interest expenses:
Salaries and employee benefits expense	$	123,478	$	102,566	$	20,912		20.4	%
Occupancy and equipment expense	16,451		15,284		1,167			7.6
Computer services and telecommunication expense	10,871		9,785		1,086			11.1
Advertising and marketing expense	3,342		3,245		97			3.0
Professional and legal expense	8,887		2,450		6,437			262.7
Other intangibles amortization expense	1,896		2,086		(190		)	(9.1	)
Branch exit and facilities impairment charges	340		6,589		(6,249		)	(94.8	)
Net loss recognized on other real estate owned and other expense	1,048		690		358			51.9
Goodwill impairment loss	3,623		—		3,623			100.0
Other operating expenses	23,056		23,517		(461		)	(2.0	)
Total non-interest expenses	$	192,992	$	166,212	$	26,780		16.1	%

Non-interest expenses increased by $26.8 million, or 16.1%, for the three months ended June 30, 2018 from the three months ended June 30, 2017. Non-interest expenses include $24.9 million and $7.2 million in merger related and repositioning expenses for the three months ended June 30, 2018 and 2017, respectively. For the second quarter of 2018, approximately $19 million of the merger related and repositioning expenses related to the discontinuation of our national mortgage origination business and approximately $6 million related to the pending merger with Fifth Third. Explanations for changes other than merger related and repositioning expenses are as follows:

• Salaries and employee benefits expense increased due to annual salary increases, new hires, and higher health insurance costs.

• Occupancy and equipment expense increased due to higher depreciation, as a result of our investment in our buildings and technology, and higher rental expenses, as a result of the office locations from the mortgage banking acquisition in the fourth quarter of 2017.

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

• Professional and legal expense increased due to case settlements and other legal and professional fees.

The following table presents the detail of the merger related and repositioning expenses for the three months ended June 30, 2018 and 2017 (dollars in thousands):

	Three Months Ended
	June 30,
	2018		2017
Merger related and repositioning expenses (1):
Salaries and employee benefits	$	17,510	$	552
Occupancy and equipment expense	1		6
Computer services and telecommunication expense	—		76
Professional and legal expense	3,453		3
Branch exit and facilities impairment charges	340		6,589
Goodwill impairment loss (2)	3,623		—
Other operating expenses	17		(60		)
Total merger related and repositioning expenses	$	24,944	$	7,166

⁽¹⁾  Primarily includes costs incurred in connection with the pending merger with Fifth Third, the discontinuation of our national mortgage origination business, and the American Chartered merger.

⁽²⁾  Represents the goodwill impairment charge within the Mortgage Banking Segment in the second quarter of 2018.

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The following table presents non-interest expense for the six months endedJune 30, 2018 compared to the six months endedJune 30, 2017 (in thousands):

	Six Months Ended
	June 30,
	2018		2017		Increase/ (Decrease)			Percentage Change
Non-interest expenses:
Salaries and employee benefits	$	229,992	$	204,117	$	25,875		12.7	%
Occupancy and equipment expense	33,880		30,328		3,552			11.7
Computer services and telecommunication expense	22,027		19,225		2,802			14.6
Advertising and marketing expense	7,205		6,406		799			12.5
Professional and legal expense	10,785		5,141		5,644			109.8
Other intangibles amortization expense	3,798		4,176		(378		)	(9.1	)
Branch exit and facilities impairment charges	340		5,907		(5,567		)	(94.2	)
Net loss recognized on other real estate owned and other expense	1,095		1,534		(439		)	(28.6	)
Loss on extinguishment of debt	3,136		—		3,136			100.0
Goodwill impairment loss	3,623		—		3,623			100.0
Other operating expenses	44,997		45,720		(723		)	(1.6	)
Total non-interest expenses	$	360,878	$	322,554	$	38,324		11.9	%

Non-interest expenses increased by $38.3 million, or 11.9%, for the six months endedJune 30, 2018 from the six months endedJune 30, 2017. Non-interest expenses include $25.6 million and $7.4 million in merger related and repositioning expenses for the six months endedJune 30, 2018 and 2017, respectively. For the six months endedJune 30, 2018 approximately $19 million of the merger related and repositioning expenses related to the discontinuation of our national mortgage origination business and approximately $6 million related to the pending merger with Fifth Third. Explanations for changes other than merger related and repositioning expenses are as follows:

• Salaries and employee benefits expense increased due to annual salary increases, new hires, and higher health insurance costs.

• Occupancy and equipment expense increased due to higher depreciation, as a result of our investment in our buildings and technology, and higher rental expenses, as a result of the office locations from the mortgage banking acquisition.

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

• Professional and legal expense increased due to case settlements and other legal and professional fees.

• A $3.1 million loss on extinguishment of debt was recognized in the first quarter of 2018 due to the redemption of the junior subordinated notes held by American Chartered Statutory Trust I, as noted earlier.

	Six Months Ended
	June 30,
	2018		2017
Merger related and repositioning expenses (1):
Salaries and employee benefits	$	18,067	$	1,166
Occupancy and equipment expense	36		10
Computer services and telecommunication expense	—		261
Advertising and marketing expense	26		—
Professional and legal expense	3,457		100
Branch exit and facilities impairment charges	340		5,907
Goodwill impairment loss (2)	3,623		—
Other operating expenses	39		(20		)
Total merger related and repositioning expenses	$	25,588	$	7,424

⁽¹⁾  Primarily includes costs incurred in connection with the pending merger with Fifth Third, the discontinuation of our national mortgage origination business, and the American Chartered merger.

⁽²⁾  Represents the goodwill impairment charge within the Mortgage Banking Segment in the second quarter of 2018.

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Income Taxes

Income tax expense for the six months endedJune 30, 2018 was $23.7 million compared to $40.7 million for the six months endedJune 30, 2017. The decrease was due to the decrease in the effective tax rate resulting from the TCJ Act for six months endedJune 30, 2018.

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

	Six Months Ended
	June 30,
	2018			2017
Income before income taxes - as reported	$	118,953		$	139,670
Tax at Federal statutory rate (21% for 2018 and 35% for 2017)	24,980			48,885
Increase (decrease) due to:
Tax exempt income, net	(5,320		)	(9,715		)
State tax expense (benefit), net of Federal impact	6,557			5,491
Other items, net	1,517			1,068
Tax expense before discrete items	27,734			45,729
Income tax rate before discrete items (effective tax rate)	23.3		%	32.7		%
Discrete tax expense (benefit) items (1)	(684		)	(2,958		)
Discrete tax benefit corporate tax rate changes (2)	(3,387		)	—
Discrete tax expense (benefit) merger related items (3)	—			(2,104		)
Income tax expense - as reported	$	23,663		$	40,667
Income tax rate	19.9		%	29.1		%

⁽¹⁾  Includes tax benefits on the vesting of restricted shares, exercise of options, and other compensation.

⁽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. The re-measurement of our net deferred tax liabilities due to the TCJ Act was determined to be provisional at June 30, 2018.

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

Operating Segments

The Company's operations currently consist of three reportable operating segments: Banking, Leasing and Mortgage Banking. Our Banking Segment generates revenues primarily from its lending, deposit gathering and fee business activities. Our Leasing Segment generates revenues through lease originations and related services. Our Mortgage Banking Segment originates residential mortgage loans for sale to investors through its retail and third party origination channels as well as residential mortgage loans held in our loan portfolio. The Mortgage Banking Segment also services residential mortgage loans owned by investors and the Company.

Three Month Comparison

Net income from our Banking Segment for the three months ended June 30, 2018increased$10.0 million to $47.9 million compared to the three months ended June 30, 2017. The increase in net income was due to the increase in net interest income, higher card fees (more sales and volume in prepaid and credit cards), stronger earnings in SBIC investments, and lower provision for credit losses partly offset by higher non-interest expense. The increase in net interest income was due to higher average loan balances and higher loan yields partly offset by higher funding costs. The average yield on loans increased as a result of an increase in short-term rates. The increase in non-interest expense was due to higher salaries and employee benefits expense (annual pay increases, new hires, and higher insurance costs), occupancy and equipment expense (higher depreciation expense), computer services and telecommunication expense (investments in technology and infrastructure), and professional and legal expense (case settlements and other legal and professional fees). In addition, the Banking Segment was favorably impacted by a lower effective tax rate due to the TCJ Act. Merger related and repositioning expenses were $5.5 million for the three months ended June 30, 2018 compared to $7.2 million for the same period in the prior year.

Net income from our Leasing Segment for the three months ended June 30, 2018increased$4.1 million to $8.2 million compared to the three months ended June 30, 2017. This increase in net income was due to higher lease financing revenue partly offset by increased salaries and employee benefits expense (the investment in sales and other revenue generating staff). Lease

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financing revenue increased due to higher residual gains and promotional income partly offset by lower fees from the sale of third-party equipment maintenance contracts. The Leasing Segment was also favorably impacted by a $1.3 million reversal of a deferred tax liability as a result of the decrease in Federal income tax rate due to the TCJ Act.

Compared to the three months ended June 30, 2017, net income from our Mortgage Banking Segment decreased$20.0 million to a loss of $17.6 million for the three months ended June 30, 2018. This decrease was due to lower mortgage origination volume as a result of the discontinuation of our national mortgage origination business and increased salaries and benefits expense due to employee severance expense associated with the discontinuation of our national mortgage origination business.

Six Month Comparison

Net income from our Banking Segment for the six months endedJune 30, 2018increased$9.6 million to $94.4 million compared to the six months endedJune 30, 2017. The increase in net income was due to the increase in net interest income, higher card fees (increased sales and volume in prepaid cards and higher credit card usage), and stronger earnings in SBIC investments partly offset by higher non-interest expense. The increase in net interest income was due to higher average loan balances and yields partly offset by higher funding costs. The increase in non-interest expense was due to higher salaries and employee benefits expense, computer services and telecommunication expense (investments in new technology), and professional and legal fees (case settlements and other legal and professional fees). Salaries and employee benefits expense increased due to annual salary increases, new hires, higher health insurance costs, and higher 401(k) and profit sharing contributions expense. In addition, the Banking Segment was favorably impacted by a lower effective tax rate due to the TCJ Act. Merger related and repositioning expenses were $5.5 million for the six months endedJune 30, 2018 compared to $7.4 million for the same period in the prior year.

Net income from our Leasing Segment for the six months endedJune 30, 2018increased$9.3 million to $19.3 million compared to the six months endedJune 30, 2017. This increase in net income was due to higher lease financing revenue partly offset by increased salaries and employee benefits expense (the investment in sales and other revenue generating staff). Lease financing revenue increased due to higher residual gains and promotional income. The Leasing Segment was also favorably impacted by a $3.8 million reversal of a deferred tax liability as a result of the decrease in Federal income tax rate due to the TCJ Act.

Compared to the six months endedJune 30, 2017, net income from our Mortgage Banking Segment decreased$22.6 million to a loss of $18.5 million for the six months endedJune 30, 2018. This decrease was due to lower mortgage origination volume as a result of the discontinuation of our national mortgage origination business and increased salaries and benefits expense due to employee severance expense associated with the discontinuation of our national mortgage origination business.

Balance Sheet

Total assets decreased$120.4 million, or 0.6%, to $20.0 billion at June 30, 2018 from December 31, 2017. 

• Investment securities increased$215.2 million, or 8.7%, from December 31, 2017 to June 30, 2018 due to the purchase of residential mortgage-backed securities in March 2018.

• Total loans, excluding purchased credit-impaired, decreased by $127.1 million, or 0.9%, to $13.7 billion at June 30, 2018 from December 31, 2017 mostly due to a decrease in commercial real estate loans.

Total liabilities decreased by $59.3 million, or 0.3%, to $17.0 billion at June 30, 2018 from December 31, 2017 due to the decrease in non-interest bearing deposits and the redemption of the junior subordinated notes held by American Chartered Statutory Trust I, as noted earlier.

• Total deposits decreased by $35.7 million, or 0.2%, to $14.9 billion at June 30, 2018 from December 31, 2017 due to the decrease in non-interest bearing deposits.

• Total borrowings decreased by $1.5 million, or 0.1%, to $1.6 billion at June 30, 2018.

Total stockholders’ equity decreased$61.1 million, or 2.0%, to $2.9 billion at June 30, 2018 compared to December 31, 2017 as a result of the redemption of all $100 million of our 8% Series A non-cumulative perpetual preferred stock partly offset by earnings for the six months endedJune 30, 2018 net of dividends declared.

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Investment Securities

The following table sets forth the amortized cost and fair value of our investment securities, excluding marketable equity securities and non-marketable FHLB and FRB stock, by type of security as indicated (in thousands):

	June 30, 2018				December 31, 2017				June 30, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
U.S. Government sponsored agencies and enterprises	$	5,098	$	5,026	$	23,013	$	23,007	$	23,141	$	23,229
States and political subdivisions	338,927		350,061		363,813		379,325		367,385		387,351
Residential mortgage-backed securities	1,225,978		1,205,579		861,594		852,699		920,005		917,605
Commercial mortgage-backed securities	63,527		63,424		71,554		72,035		88,159		89,326
Corporate bonds	23,179		23,170		70,155		70,197		137,948		138,556
Equity securities (1)	—		—		11,236		11,063		11,114		11,004
Total Available for Sale	1,656,709		1,647,260		1,401,365		1,408,326		1,547,752		1,567,071
Held to maturity
States and political subdivisions	884,576		901,343		878,400		910,512		896,043		931,209
Residential mortgage-backed securities	38,460		38,860		80,682		81,943		126,869		129,835
Total Held to Maturity	923,036		940,203		959,082		992,455		1,022,912		1,061,044
Total	$	2,579,745	$	2,587,463	$	2,360,447	$	2,400,781	$	2,570,664	$	2,628,115

⁽¹⁾  Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new guidance under ASC Topic 825 "Financial Instruments" on January 1, 2018.

Loan Portfolio

The following table sets forth the composition of our loan portfolio (excluding loans held for sale) as of the dates indicated showing the balances of legacy loans and loans acquired through the American Chartered and Taylor Capital mergers (dollars in thousands):

	June 30, 2018								December 31, 2017
	Legacy (1)		Acquired (2)		Total		% of Total		Legacy (1)		Acquired (2)		Total		% of Total
Commercial-related credits:
Commercial loans	$	4,639,885	$	176,660	$	4,816,545	35	%	$	4,532,153	$	254,027	$	4,786,180	34	%
Commercial loans collateralized by assignment of lease payments	2,085,054		15,406		2,100,460		15		2,077,972		35,163		2,113,135		15
Commercial real estate	3,327,971		601,356		3,929,327		28		3,370,590		776,939		4,147,529		30
Construction real estate	493,047		2,758		495,805		4		401,189		5,660		406,849		3
Total commercial-related credits	10,545,957		796,180		11,342,137		82		10,381,904		1,071,789		11,453,693		82
Other loans:
Residential real estate	1,159,942		192,683		1,352,625		10		1,212,120		220,338		1,432,458		10
Indirect vehicle	748,645		1,338		749,983		5		666,443		1,485		667,928		4
Home equity	155,877		36,908		192,785		1		165,297		53,801		219,098		2
Other consumer loans	81,414		300		81,714		1		72,742		399		73,141		1
Total other loans	2,145,878		231,229		2,377,107		17		2,116,602		276,023		2,392,625		17
Total loans excluding purchased credit-impaired loans	12,691,835		1,027,409		13,719,244		99		12,498,506		1,347,812		13,846,318		99
Purchased credit-impaired loans	66,229		34,772		101,001		1		79,066		40,678		119,744		1
Total loans	$	12,758,064	$	1,062,181	$	13,820,245	100	%	$	12,577,572	$	1,388,490	$	13,966,062	100	%

⁽¹⁾  Legacy loans include all loans other than those acquired through the American Chartered and Taylor Capital mergers, including loans acquired in connection with our FDIC-assisted transactions and our other acquisition transactions, as well as new loans originated subsequent to the American Chartered and Taylor Capital mergers, and American Chartered and Taylor Capital loans that have been renewed.

⁽²⁾  Represents loans acquired through the American Chartered and Taylor Capital mergers that have not yet been renewed. These balances will decrease to zero over time.

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Asset Quality

Non-performing loans include loans accounted for on a non-accrual basis and accruing loans contractually past due 90 days or more as to interest or principal. Management reviews the loan portfolio for problem loans on an ongoing basis. During the ordinary course of business, management becomes aware of borrowers that may not be able to meet the contractual requirements of loan agreements. These loans are placed under close supervision with consideration given to placing the loan on non-accrual status, increasing the allowance for loan and lease losses and (if appropriate) partial or full charge-off. After a loan is placed on non-accrual status, any interest previously accrued but not yet collected is reversed against current income. Generally, if interest payments are received on non-accrual loans, these payments will be applied to principal and not taken into income. Loans will not be placed back on accrual status unless back interest and principal payments are made. Our general policy is to place loans 90 days past due on non-accrual status, as well as those loans that continue to pay, but display a well-defined material weakness that we believe will result in a loss of principal and interest.

Non-performing loans exclude loans held for sale. Fair value of these loans includes estimates of credit losses.  

The following table sets forth the amounts of non-performing loans, non-performing assets and purchased credit-impaired loans (excluding loans held for sale and other real estate owned acquired as part of our FDIC-assisted transactions) as well as other information regarding asset quality at the dates indicated (dollars in thousands):

	June 30, 2018			December 31, 2017			June 30, 2017
Non-performing loans:
Non-accruing loans	$	64,515		$	71,238		$	51,013
Loans 90 days or more past due, still accruing interest	4,010			5,570			1,190
Total non-performing loans	68,525			76,808			52,203
Other real estate owned	10,869			9,736			11,063
Repossessed assets	643			589			484
Total non-performing assets	$	80,037		$	87,133		$	63,750
Purchased credit-impaired loans	$	101,001		$	119,744		$	149,077
Total allowance for loan and lease losses	$	162,790		$	157,710		$	154,033
Accruing restructured loans (1)	25,660			28,554			29,658
Total non-performing loans to total loans	0.50		%	0.55		%	0.38		%
Total non-performing assets to total assets	0.40			0.43			0.32
Allowance for loan and lease losses to total non-performing loans	237.56			205.33			295.07

⁽¹⁾  Accruing restructured loans consists of loans that have been modified and are performing in accordance with those modified terms.

A loan is classified as a troubled debt restructuring when a borrower is experiencing financial difficulties that leads to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses.  A loan that is modified at a market rate of interest may no longer be classified as troubled debt restructuring in the calendar year subsequent to the restructuring if it is in compliance with the modified terms.  Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms.  This may result in the loan being returned to accrual status at the time of restructuring.  A period of sustained repayment for at least six months generally is required for return to accrual status.

Non-performing assets consists of non-performing loans as well as other repossessed assets and other real estate owned.  Other real estate owned represents properties acquired through foreclosure or other proceedings and is recorded at fair value less the estimated cost of disposal at the date of acquisition.  Other real estate owned is evaluated regularly to ensure that the recorded amount is supported by its current fair value.  Valuation allowances to reduce the carrying amount to fair value less estimated costs of disposal are recorded as necessary.  Gains and losses and changes in valuations on other real estate owned are included in net gain (loss) recognized on other real estate within non-interest expense.  Expenses, net of rental income, from the operations of other real estate owned are reflected as a separate line item on the statement of operations.  Other repossessed assets primarily consist of repossessed vehicles.  Losses on repossessed vehicles are charged-off to the allowance when title is taken and the vehicle is valued.  Once the Bank obtains title, repossessed vehicles are not included in loans, but are classified as “other assets” on the

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consolidated balance sheets.  The typical holding period for resale of repossessed automobiles is less than 90 days unless significant repairs to the vehicle are needed which occasionally results in a longer holding period.  The typical holding period for motorcycles can be more than 90 days, as the average motorcycle re-sale period is longer than the average automobile re-sale period.  The longer average period for motorcycles is a result of cyclical trends in the motorcycle market.

Other real estate owned that is related to our FDIC-assisted transactions is excluded from non-performing assets. 

The following table presents a summary of other real estate owned, excluding assets related to FDIC-assisted transactions, for the six months endedJune 30, 2018 and 2017 (in thousands):

	June 30,
	2018			2017
Beginning balance	$	9,736		$	26,279
Transfers in at fair value less estimated costs to sell	3,890			2,658
Fair value adjustments	(160		)	(1,858		)
Net gains on sales of other real estate owned	169			670
Cash received upon disposition	(2,766		)	(16,686		)
Ending balance	$	10,869		$	11,063

Potential Problem Loans

We define potential problem loans as performing loans rated substandard and that do not meet the definition of a non-performing loan (See “Asset Quality” section above for non-performing loans). We do not necessarily expect to realize losses on potential problem loans, but we recognize potential problem loans carry a higher probability of default and require additional attention by management. The following table sets forth the aggregate principal amount of potential problem loans at the dates indicated (in thousands):

	June 30, 2018		December 31, 2017
Commercial loans	$	118,178	$	89,836
Commercial loans collateralized by assignment of lease payments	5,686		9,407
Commercial real estate	114,286		74,023
Construction real estate	5,534		—
Total	$	243,684	$	173,266

Potential problem loans increased compared to December 31, 2017 due to migrations from the health care and asset-based lending portfolios. 

Allowance for Loan and Lease Losses

Management believes the allowance for loan and lease losses accounting policy is critical to the portrayal and understanding of our financial condition and results of operations. Selection and application of this “critical accounting policy” involves judgments, estimates, and uncertainties that are subject to change. In the event that different assumptions or conditions were to prevail, and depending upon the severity of such changes, materially different financial condition or results of operations is a reasonable possibility.

We maintain our allowance for loan and lease losses at a level that management believes is appropriate to absorb probable losses on existing loans based on an evaluation of the collectability of loans, underlying collateral, and prior loss experience.

Our allowance for loan and lease losses is comprised of three elements: a commercial-related general loss reserve; a commercial-related specific reserve for impaired loans; and a consumer related reserve for smaller-balance homogenous loans. Each element is discussed below.

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Commercial-Related General Loss Reserve.  We maintain a general loan loss reserve for the four categories of commercial-related loans in our portfolio - commercial loans, commercial loans collateralized by the assignment of lease payments (lease loans), commercial real estate loans, and construction real estate loans. 

Under our loan risk rating system, each commercial-related loan is risk rated between one and nine by the originating loan officer, Senior Credit Management, Loan Review or loan committee.  A loan rated "one" represents a loan least likely to default, while a loan rated "nine" represents a loss.  The probability of loans defaulting for each risk rating, sometimes referred to as default factors, is estimated based on the frequency with which loans migrate from one risk rating to another and to default status over time.  We use a loan loss reserve model that incorporates loan risk rating migrations and historical default data over a multi-year period to develop estimated default factors ("EDFs").  The model tracks annual loan rating migrations by loan type over the last 17 years and is adjusted to reflect average losses over an economic cycle. EDFs are updated annually in December.

EDFs are multiplied by individual loan balances in each risk-rating category and by a historical loss given default estimate for each loan type (which incorporates recoveries) to determine the appropriate allowance by loan type.  This approach is applied to the commercial, lease, commercial real estate, and construction real estate components of the portfolio.

To account for current economic conditions, the general allowance for loan and lease losses also includes macroeconomic factor adjustments.  Macroeconomic factors adjust the ALLL upward or downward based on the current point in the economic cycle using predictive economic data and are applied to the loan loss model through a separate allowance element for the commercial, commercial real estate, construction real estate and lease loan components.  To determine our macroeconomic factors, we use specific economic data that are deemed predictive of future credit losses. We tested over 20 economic variables (U.S. manufacturing index, unemployment rate, U.S. GDP growth, etc.). We review this data annually to determine that such relationships continue to exist. We currently use the following macroeconomic indicators in our macroeconomic factor computation:

• Commercial loans and lease loans:  BBB-rated debt yield and number of civilians unemployed for 27 weeks or more.

• Commercial real estate loans and construction loans:  M2 Money stock, the U.S. Commercial Real Estate Index and the University of Michigan Consumer Sentiment Index.

Using the indicators noted above, a net charge-off rate is estimated and compared to our cycle average rate, resulting in a macroeconomic adjustment factor.  The macroeconomic adjustment factor is applied to each commercial loan type.  Each year, we evaluate the predictive nature of the macroeconomic factors and re-calibrate the macroeconomic models as needed.

Management may also adjust for other qualitative factors such as loan growth, migration trends, portfolio characteristics, loan concentrations, changing legal and regulatory landscape as well as other similar factors.

The commercial-related general loss reserve was $139.4 million as of June 30, 2018 and $132.8 million as of December 31, 2017. Reserves on impaired commercial-related loans are included in the “Commercial-Related Specific Reserves” section below. 

Commercial-Related Specific Reserves.  Our allowance for loan and lease losses also includes specific reserves on impaired commercial loans. A loan is considered to be impaired when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that the collection of all contractual principal and interest payments due is doubtful.

At each quarter-end, impaired loans are reviewed individually, with adjustments made to the general calculated reserve for each loan as deemed necessary.  Specific adjustments are made depending on expected cash flows and/or the value of the collateral securing each loan.  Generally, the Company obtains a current external appraisal (within 12 months) on real estate secured impaired loans.  Our appraisal policy is designed to comply with the Interagency Appraisal and Evaluation Guidelines, most recently updated in December 2010. As part of our compliance with these guidelines, we maintain an internal Appraisal Review Department that engages and reviews all third party appraisals.

In addition, each impaired commercial loan with real estate collateral is reviewed quarterly by our appraisal department to determine that the most recent valuation remains appropriate during subsequent quarters until the next appraisal is received.  If considered necessary by our appraisal department, the appraised value may be further discounted to reflect current values. 

Other valuation techniques are also used to value non-real estate assets.  Discounts may be applied in the impairment analysis used for general business assets ("GBA").  Examples of GBA include accounts receivable, inventory, and any marketable

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securities pledged. The discount is used to reflect collection risk in the event of default that may not have been included in the valuation of the asset.

The total commercial-related specific reserves component of the allowance was $6.5 million as of June 30, 2018 compared to $6.1 million as of December 31, 2017.

Consumer-Related Reserves.  Pools of homogeneous loans with similar risk and loss characteristics are also assessed for probable losses.  These loan pools include consumer, residential real estate, home equity, credit cards, and indirect vehicle loans.  Migration probabilities obtained from past due roll rate analyses and historical loss rates are applied to current balances to forecast charge-offs over a one-year time horizon. The reserves for consumer-related loans totaled $16.9 million at June 30, 2018 and $18.9 million at December 31, 2017.

We consistently apply our methodology for determining the appropriateness of the allowance for loan and lease losses but may adjust our methodologies and assumptions based on historical information related to charge-offs and management's evaluation of the loan portfolio. In this regard, we periodically review the following to validate our allowance for loan and lease losses: historical net charge-offs as they relate to prior periods' allowance for loan and lease loss, comparison of historical loan migration in past years compared to the current year, overall credit trends and ratios, any significant changes in loan concentrations, lending policies, and emerging impacts in the legal/regulatory landscape. In reviewing this data, we adjust qualitative factors within our allowance methodology to appropriately reflect any changes warranted by the validation process. Management believes it has established an allowance for probable loan losses as appropriate under GAAP.

We recorded a provision for credit losses of $30 thousand for acquired loans related to the non-purchased credit-impaired bank merger loans as accounted for in accordance with ASC Topic 310-20 for the six months endedJune 30, 2018. No additional provisions were recorded on the purchase credit-impaired bank merger loans accounted for in accordance with ASC Topic 310-30.

The provision for credit losses for non-purchased credit-impaired loans bank merger loans is calculated using a process similar to the one used for the legacy portfolio. A general loan loss reserve is calculated for the non-purchased credit-impaired bank merger loans that have renewed and not renewed separately using the same loan loss reserve model used for the legacy loans. The general loan loss reserve is calculated for the four categories of commercial-related loans in our portfolio: commercial loans, commercial loans collateralized by the assignment of lease payments (lease loans), commercial real estate loans, and construction real estate loans. The probability of loans defaulting for each risk rating (referred to as default factors) is estimated based on the frequency with which loans migrate from one risk rating to another and to default status over time. The default factors are multiplied by individual loan balances in each risk rating category and again multiplied by an historical loss given default estimate for each loan type to determine the appropriate allowance. The bank merger loans are risk rated using the Company's rating methodology. The general loan loss reserve amount is adjusted upward to reflect uncertainty regarding the performance of the acquired portfolios due to our limited history with the borrowers.

For bank merger loans (non-purchased credit-impaired) that renewed during the period (quarter or year to date), the default factors were multiplied by the loan balance and loss given default estimate to calculate the required reserves. The amount of required reserves was recognized as a provision for credit losses in the statement of operations. For bank merger loans (non-purchased credit-impaired) that were not renewed subsequent to the merger consummation, the default factors were multiplied by the loan balance and the historical loss given default estimate. The resulting general loan loss reserve was compared to the remaining acquisition accounting discounts related to credit on the bank merger loans (non-purchased credit-impaired), with the excess recognized as a provision for credit losses in the statement of operations.

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The following table presents an analysis of the allowance for loan and lease losses for the periods presented (dollars in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Balance at beginning of period	$	163,390		$	146,498		$	159,408		$	141,842
Provision for credit losses	6,219			9,699			13,727			13,433
Charge-offs:
Commercial loans	1,534			700			2,936			868
Commercial loans collateralized by assignment of lease payments	716			—			716			—
Commercial real estate	2,621			262			5,097			1,347
Construction real estate	—			—			—			—
Residential real estate	28			270			729			360
Home equity	184			261			248			434
Indirect vehicles	1,328			930			3,152			2,341
Other consumer loans	309			498			660			944
Total charge-offs	6,720			2,921			13,538			6,294
Recoveries:
Commercial loans	167			1,339			504			2,849
Commercial loans collateralized by assignment of lease payments	149			249			400			712
Commercial real estate	329			362			1,091			880
Construction real estate	37			47			430			159
Residential real estate	26			58			96			586
Home equity	228			292			298			575
Indirect vehicles	664			565			1,843			1,217
Other consumer loans	89			109			319			338
Total recoveries	1,689			3,021			4,981			7,316
Net charge-offs (recoveries)	5,031			(100		)	8,557			(1,022		)
Allowance for credit losses	164,578			156,297			164,578			156,297
Allowance for unfunded credit commitments	(1,788		)	(2,264		)	(1,788		)	(2,264		)
Allowance for loan and lease losses	$	162,790		$	154,033		$	162,790		$	154,033
Total loans	$	13,820,245		$	13,614,141		$	13,820,245		$	13,614,141
Ratio of allowance to total loans	1.18		%	1.13		%	1.18		%	1.13		%
Ratio of net charge-offs (recoveries) to average loans (annualized)	0.15			(0.00		)	0.12			(0.02		)

Net charge-offs of $5.0 million were recorded in the three months ended June 30, 2018 compared to net recoveries of $100 thousand in the three months ended June 30, 2017. A provision for credit losses of $6.2 million was recorded for the three months ended June 30, 2018 compared to $9.7 million for the three months ended June 30, 2017. A provision for credit losses of $1.8 million was recorded for bank merger loans for the three months ended June 30, 2018 compared to a provision for credit losses of $1.5 million for bank merger loans for the three months ended June 30, 2017.

Net charge-offs of $8.6 million were recorded in the six months endedJune 30, 2018 compared to net recoveries of $1.0 million in the six months endedJune 30, 2017. A provision for credit losses of $13.7 million was recorded for the six months endedJune 30, 2018 compared to $13.4 million for the six months endedJune 30, 2017. A provision for credit losses of $30 thousand was recorded for bank merger loans for the six months endedJune 30, 2018 compared to a provision for credit losses of $6.9 million for bank merger loans for the six months endedJune 30, 2017.

Additions to the allowance for loan and lease losses, which are charged to earnings through the provision for credit losses, are determined based on a variety of factors, including specific reserves, current loan risk ratings, delinquent loans, historical loss experience and economic conditions in our market area. In addition, federal regulatory authorities, as part of the examination process, periodically review our allowance for loan and lease losses. The regulators may require us to record adjustments to the allowance level based upon their assessment of the information available to them at the time of examination. Although management believes the allowance for loan and lease losses is sufficient to cover probable losses inherent in the loan portfolio, there can be no assurance that the allowance will prove sufficient to cover actual loan losses.

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We utilize an internal asset classification system as a means of reporting problem and potential problem assets. At scheduled meetings of the board of directors of MB Financial Bank, a watch list is presented, showing significant loan relationships listed as “Special Mention,” “Substandard,” and “Doubtful.” An asset is classified Substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets classified as Loss are those considered uncollectible and viewed as valueless assets and have been charged-off. Assets that do not currently expose us to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management's close attention are deemed to be Special Mention.

Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the Office of the Comptroller of the Currency, MB Financial Bank's primary regulator, which can order the establishment of additional general or specific loss allowances. There can be no assurance that regulators, in reviewing our loan portfolio, will not request us to materially adjust our allowance for loan and lease losses. The Office of the Comptroller of the Currency, in conjunction with the other federal banking agencies, has adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of adequate allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines. Generally, the policy statement recommends that (1) institutions have effective systems and controls to identify, monitor and address asset quality problems; (2) management has analyzed all significant factors that affect the collectability of the portfolio in a reasonable manner; and (3) management has established acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. We analyze our process regularly, with modifications made if needed, and report those results four times per year at meetings of our board of directors. However, there can be no assurance that regulators, in reviewing our loan portfolio, will not request us to materially adjust our allowance for loan and lease losses at the time of their examination.

Although management believes that appropriate 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 and lease loss allowances may become necessary.

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Lease Investments

The lease portfolio is comprised of various types of equipment, generally technology related, health care, material handling, and general manufacturing equipment. 

Lease investments by categories follow (in thousands):

	June 30, 2018			December 31, 2017			June 30, 2017
Direct finance leases:
Minimum lease payments	$	460,476		$	492,953		$	454,283
Estimated unguaranteed residual values	64,717			74,220			68,135
Less: unearned income	(38,712		)	(41,311		)	(37,020		)
Direct finance leases (1)	$	486,481		$	525,862		$	485,398
Leveraged leases:
Minimum lease payments	$	45		$	179		$	390
Estimated unguaranteed residual values	10			10			54
Less: unearned income	—			(3		)	(10		)
Less: related non-recourse debt	(45		)	(177		)	(383		)
Leveraged leases (1)	$	10		$	9		$	51
Operating leases:
Equipment, at cost	$	620,227		$	575,612		$	491,844
Less accumulated depreciation	(186,722		)	(166,561		)	(145,808		)
Lease investments, net	$	433,505		$	409,051		$	346,036

⁽¹⁾  Direct finance and leveraged leases are included as commercial loans collateralized by assignment of lease payments for financial statement purposes.

Leases that transfer substantially all of the benefits and risk related to the equipment ownership are classified as direct finance leases. If these direct finance leases have non-recourse debt associated with them and meet the additional requirements for a leveraged lease, they are further classified as leveraged leases, and the associated debt is netted with the outstanding balance in the consolidated financial statements. Interest income on direct finance and leveraged leases is recognized using methods which approximate a level yield over the term of the lease. Operating leases are investments in equipment leased to other companies, where the residual component makes up more than 10% of the investment.  The Company funds most of the lease equipment purchases internally, but has some loans at other banks which totaled $75.5 million at June 30, 2018, $76.3 million at December 31, 2017, and $71.5 million at June 30, 2017.

At June 30, 2018, the following reflects the residual values for leases by category in the year the initial lease term ends (in thousands):

	Residual Values
	Direct
End of initial lease term	Finance		Leveraged		Operating
December 31,	Leases		Leases		Leases		Total
2018	$	5,112	$	10	$	10,050	$	15,172
2019	9,190		—		12,240		21,430
2020	13,795		—		26,984		40,779
2021	5,629		—		21,085		26,714
2022	9,417		—		17,147		26,564
Thereafter	21,574		—		43,280		64,854
	$	64,717	$	10	$	130,786	$	195,513

The lease residual value represents the present value of the estimated fair value of the leased equipment at the termination of the lease. Lease residual values are reviewed annually, and any write-downs for permanent impairments deemed necessary are recorded in the period in which they become known. To mitigate this risk of loss, we seek to diversify both the type of equipment

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leased and the industries in which the lessees participate. In addition, a portion of our leases are terminal rental adjustment clause or "TRAC" leases where the lessee effectively guarantees the full residual value through a rental adjustment at the end of term or those where partial residual value is guaranteed ("split-TRAC"), which has a limited residual risk. Under a split-TRAC structure, the limited residual risk would be satisfied first by the net sale proceeds of the leased asset. The lessee’s at-risk portion, or top risk, is satisfied last and is subject to repayment as additional rent, if the TRAC amount is not satisfied by the net sale proceeds.

Often times, there are several individual lease schedules under one master lease.  There were 4,718 leases at June 30, 2018 compared to 4,773 at December 31, 2017.  The average residual value per lease schedule was approximately $41 thousand and $45 thousand at June 30, 2018 and December 31, 2017, respectively.  The average residual value per master lease schedule was approximately $168 thousand at June 30, 2018 and $183 thousand at December 31, 2017. Certain residual values have less than full residual risk.

Liquidity and Sources of Capital

Our cash flows are composed of three classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Cash flows from operating activities include net income, adjusted for items in net income that did not impact cash.  Net cash flows provided by operating activities were $263.8 million for the six months endedJune 30, 2018 compared to net cash flows provided by operating activities of $177.2 million for the six months endedJune 30, 2017. The change was mostly due to lower net proceeds of loans held for sale in the six months endedJune 30, 2017.

Cash flows from investing activities reflects the impact of loans and investment securities acquired for the Company’s interest-earning asset portfolios, as well as cash flows from asset sales and the impact of acquisitions.  For the six months endedJune 30, 2018, the Company had net cash flows used in investing activities of $161.6 million compared to net cash flows used in investing activities of $731.0 million for the six months endedJune 30, 2017.  The change was mostly due to a decrease in loans partly offset by an increase in purchases of investment securities during the six months endedJune 30, 2018.

Cash flows from financing activities include transactions and events whereby cash is obtained from depositors, creditors or investors.  For the six months endedJune 30, 2018, the Company had net cash flows used in financing activities of $188.3 million compared to net cash flows provided by financing activities of $554.6 million for the six months endedJune 30, 2017.  The change in cash flows from financing activities was mostly due to the decrease in short-term borrowings, the redemption of our 8% Series A non-cumulative perpetual preferred stock and junior subordinated notes held by American Chartered Statutory Trust I, and a decrease in deposits during the six months endedJune 30, 2018 partly offset by an increase in long-term borrowings.

In the event that additional short-term liquidity is needed, we have established relationships with several large and regional banks to provide short-term borrowings in the form of federal funds purchases.  While, at June 30, 2018, there were no firm lending commitments in place, management believes that we could borrow approximately $641.5 million for a short time from these banks on a collective basis.  Additionally, we are a member of Federal Home Loan Bank of Chicago ("FHLB").  As of June 30, 2018, the Company had $878.1 million outstanding in FHLB advances, and could borrow an additional amount of approximately $762.1 million.  As a contingency plan for significant funding needs, the Asset/Liability Committee may also consider the sale of investment securities, selling securities under agreement to repurchase, or the temporary curtailment of lending activities.  As of June 30, 2018, the Company had approximately $1.9 billion of unpledged securities, excluding securities available for pledge at the FHLB.

Our main sources of liquidity at the holding company level are dividends from MB Financial Bank and cash on hand. We previously maintained a $35.0 million unsecured line of credit at the holding company level with a correspondent bank. No borrowings were outstanding on the line of credit as of June 30, 2018, and the line of credit matured on June 30, 2018. The holding company had $165.4 million in cash as of June 30, 2018.

See Notes 8 and 9 to the consolidated financial statements in Part I, Item 1 of this report for details of period end balances and other information for these various funding sources. There were no material changes outside the ordinary course of business in the Company’s contractual obligations at June 30, 2018 as compared to December 31, 2017.

MB Financial Bank is subject to various regulatory capital requirements which affect its ability to pay dividends to us.  Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. The minimum ratios required for a bank to be considered “well capitalized” for regulatory purposes are a total risk-based capital ratio of 10.00%, a Tier 1 capital to risk-weighted assets ratio of 8.00%, a common equity Tier 1 capital to risk-weighted assets ratio of 6.50% and a Tier 1 capital to average assets ratio of 5.00%.   In addition, we have an internal policy which provides that dividends paid to us by MB Financial Bank cannot exceed

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an amount that would cause MB Financial Bank’s total risk-based capital ratio, Tier 1 capital to risk-weighted assets ratio, common equity Tier 1 capital to risk-weighted assets ratio and Tier 1 capital to average assets ratio to fall below 11%, 9%, 7.5% and 7%, respectively.  See “Item 1. Business — Supervision and Regulation” in our Annual Report on Form 10-K for the year ended December 31, 2017.

At June 30, 2018, the Company’s total risk-based capital ratio was 13.75%, Tier 1 capital to risk-weighted assets ratio was 10.81%, common equity Tier 1 capital to risk-weighted assets ratio was 9.68% and Tier 1 capital to average asset ratio was 9.74%. At June 30, 2018, MB Financial Bank’s total risk-based capital ratio was 12.79%, Tier 1 capital to risk-weighted assets ratio was 10.81%, common equity Tier 1 capital to risk-weighted assets ratio was 10.79% and Tier 1 capital to average asset ratio was 9.73%. MB Financial Bank was categorized as “Well-Capitalized” at June 30, 2018 under the regulations of the Office of the Comptroller of the Currency.

The Company and MB Financial Bank must maintain a capital conservation buffer consisting of additional common equity Tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses.  The new capital conservation buffer requirement began phasing in on January 1, 2016 when a buffer greater than 0.625% of risk-weighted assets was required, which amount will increase each year until the buffer requirement is fully implemented on January 1, 2019. At June 30, 2018, the Company and MB Financial Bank maintained capital above the 1.875% conservation buffer required for 2018.

Non-GAAP Financial Information

This report 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 net interest income on a fully tax equivalent basis, net interest margin on a fully tax equivalent basis and net interest margin on a fully tax equivalent basis excluding the effect of the acquisition accounting discount accretion on loans acquired through the bank mergers. 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. The tax equivalent adjustment to net interest income 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. Management also believes that presenting net interest margin on a tax equivalent basis excluding the effect of the acquisition accounting discount accretion on loans acquired through the Taylor Capital and American Chartered mergers is useful in assessing the impact of acquisition accounting on net interest margin, as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off our balance sheet. 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. Reconciliations of net interest income on a fully tax equivalent basis to net interest income and net interest margin on a fully tax equivalent basis and net interest margin on a fully tax equivalent basis excluding the effect of the acquisition accounting discount accretion on loans acquired through the Taylor Capital and American Chartered mergers to net interest margin are contained in the tables under “Net Interest Margin.”

Forward-Looking Statements

When used in this Quarterly Report on Form 10-Q and in other documents filed or furnished with the Securities and Exchange Commission, in press releases or other public shareholder 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 MB Financial, Inc.’s future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial items. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.

Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) the possibility that our actual results on selected items relating to our mortgage operations for which we have provided projections or estimates in this document will be materially different from such projections or estimates; (2) the ability to satisfy closing conditions to our pending merger with Fifth Third, including the approvals by our stockholders, on the expected terms and schedule; (3) the ability to obtain regulatory approvals required to complete our pending merger with Fifth Third, and the timing and conditions for such approvals; (4) delays in closing our pending merger with Fifth Third; (5) disruptions to our business resulting from our pending merger with Fifth Third; (6) the risk that funds obtained from capital raising

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activities will not be utilized efficiently or effectively; (7) 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; (8) 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; (9) the quality and composition of our securities portfolio; (10) competitive pressures among depository institutions; (11) interest rate movements and their impact on customer behavior, net interest margin and the value of our mortgage servicing rights; (12) the possibility that our mortgage banking business may experience increased volatility in its revenues and earnings and the possibility that the profitability of our mortgage banking business could be significantly reduced, both before and after the discontinuation of our national mortgage origination business, if we are unable to originate and sell mortgage loans at profitable margins or if changes in interest rates negatively impact the value of our mortgage servicing rights; (13) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (14) fluctuations in real estate values; (15) 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; (16) our ability to adapt successfully to technological changes to meet customers’ needs and developments in the market place; (17) 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; (18) our ability to realize the residual values of our direct finance, leveraged, and operating leases; (19) our ability to access cost-effective funding; (20) changes in financial markets; (21) changes in economic conditions in general and in the Chicago metropolitan area in particular; (22) the costs, effects, and outcomes of litigation; (23) new legislation or regulatory changes, 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; (24) changes in accounting principles, policies or guidelines; and (25) 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.

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Item 3.   Quantitative and Qualitative Disclosures about Market Risk

Market Risk and Asset Liability Management

Market Risk.  Market risk is the risk that the market value or estimated fair value of our assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that our net income will be significantly reduced by interest rate changes.  Market risk is managed operationally in our Treasury Group and is addressed through a selection of funding and hedging instruments supporting balance sheet growth, as well as monitoring our asset investment strategies.

Asset Liability Management.  Management and our Treasury Group continually monitor our sensitivity to interest rate changes.  It is our policy to maintain an acceptable level of interest rate risk over a range of possible changes in interest rates while remaining responsive to market demand for loan and deposit products.  The strategy we employ to manage our interest rate risk is to measure our risk using an asset/liability simulation model.  The model considers several factors to determine our potential exposure to interest rate risk, including measurement of repricing gaps, duration, convexity, value at risk, and the market value of portfolio equity under assumed changes in the level of interest rates, shape of the yield curves, and general market volatility.  Management controls our interest rate exposure using several strategies, which include adjusting the maturities of securities in our investment portfolio, and limiting fixed rate loans or fixed rate deposits with terms of more than five years.  We also use derivative instruments, principally interest rate swaps, to manage our interest rate risk.  See Note 14 to the consolidated financial statements in Part I, Item 1 of this report.

Interest Rate Risk.  Interest rate risk can come in a variety of forms, including repricing risk, yield curve risk, basis risk, and prepayment risk.  We experience repricing risk when the change in the average yield of our interest earning assets or average rate of our interest bearing liabilities is more sensitive than the other to changes in market interest rates.  Such a change in sensitivity could reflect a number of possible mismatches in the repricing opportunities of our assets and liabilities.

In the event that yields on our assets and liabilities do adjust to changes in market rates to the same extent, we may still be exposed to yield curve risk.  Yield curve risk reflects the possibility the changes in the shape of the yield curve could have different effects on our assets and liabilities.

Variable rate assets and liabilities that reprice at similar times, or that have similar maturities or repricing dates, are based on different indexes that still have interest rate risk.  Basis risk reflects the possibility that indexes will not move in a coordinated manner.

We hold mortgage-related investments, including mortgage loans and mortgage-backed securities.  Prepayment risk is associated with mortgage-related investments and results from homeowners’ ability to pay off their mortgage loans prior to maturity.  We limit this risk by restricting the types of mortgage-backed securities we own to those with limited average life changes under certain interest-rate shock scenarios, or securities with embedded prepayment penalties.

Measuring Interest Rate Risk.  As noted above, interest rate risk can be measured by analyzing the extent to which the repricing of assets and liabilities are mismatched to create an interest sensitivity gap.  An asset or liability is said to be interest rate sensitive within a specific period if it will mature or reprice within that period.  The interest rate sensitivity gap is defined as the difference between the amount of interest earning assets maturing or repricing within a specific time period and the amount of interest bearing liabilities maturing or repricing within that same time period.  A gap is considered positive when the amount of interest rate sensitive assets exceeds the amount of interest rate sensitive liabilities.  A gap is considered negative when the amount of interest rate sensitive liabilities exceeds the amount of interest rate sensitive assets.  During a period of rising interest rates, therefore, a positive gap would tend to positively affect net interest income.  Conversely, during a period of falling interest rates, a positive gap position would tend to result in a decrease in net interest income.

The following table sets forth the amounts of interest earning assets and interest bearing liabilities outstanding at June 30, 2018 that we anticipate, based upon certain assumptions, to reprice or mature in each of the future time periods shown.  Except as stated below, the amount of assets and liabilities shown which reprice or mature during a particular period were determined based on the earlier of the term to repricing or the term to repayment of the asset or liability. 

The table is intended to provide an approximation of the projected repricing of assets and liabilities at June 30, 2018 based on contractual maturities and scheduled rate adjustments within a three-month period and subsequent selected time intervals.  The loan amounts in the table reflect principal balances expected to be reinvested and/or repriced because of contractual amortization and rate adjustments on adjustable-rate loans.  Loan and investment securities’ contractual maturities and amortization reflect

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expected prepayment assumptions.  While NOW, money market and savings deposit accounts have adjustable rates, it is assumed that the interest rates on some of the accounts will not adjust immediately to changes in other interest rates. Therefore, the information in the table is calculated assuming that NOW, money market and savings deposits will reprice as follows: 49%, 47%, and 31%, respectively, in the first three months, 5%, 10%, and 12%, respectively, in the next nine months, 19%, 30%, and 37%, respectively, from one year to five years, and 27%, 13%, and 20%, respectively over five years (dollars in thousands):

	Time to Maturity or Repricing
	0 – 90			91 - 365			1 – 5			Over 5
	Days			Days			Years			Years			Total
Interest Earning Assets:
Interest earning deposits with banks	$	106,833		$	10,519		$	2,320		$	—		$	119,672
Investment securities	95,850			279,635			1,257,482			1,063,704			2,696,671
Loans held for sale	423,367			—			—			—			423,367
Loans, including covered loans	8,200,144			1,530,777			3,386,908			702,416			13,820,245
Total interest earning assets	$	8,826,194		$	1,820,931		$	4,646,710		$	1,766,120		$	17,059,955
Interest Bearing Liabilities:
NOW, money market, and interest bearing deposits	$	2,356,771		$	378,214		$	1,219,715		$	995,976		$	4,950,676
Savings deposits	370,623			145,882			442,857			221,716			1,181,078
Time deposits	384,151			970,464			1,088,115			971			2,443,701
Short-term borrowings	576,462			75,000			—			—			651,462
Long-term borrowings	383,282			19,260			323,762			3,988			730,292
Junior subordinated notes issued to capital trusts	194,450			—			—			—			194,450
Total interest bearing liabilities	$	4,265,739		$	1,588,820		$	3,074,449		$	1,222,651		$	10,151,659
Rate sensitive assets (RSA)	$	8,826,194		$	10,647,125		$	15,293,835		$	17,059,955		$	17,059,955
Rate sensitive liabilities (RSL)	4,265,739			5,854,559			8,929,008			10,151,659			10,151,659
Cumulative GAP (GAP=RSA-RSL)	4,560,455			4,792,566			6,364,827			6,908,296			6,908,296
RSA/Total assets	44.20		%	53.32		%	76.60		%	85.44		%	85.44		%
RSL/Total assets	21.36			29.32			44.72			50.84			50.84
GAP/Total assets	22.84			24.00			31.88			34.60			34.60
GAP/RSA	51.67			45.01			41.62			40.49			40.49

Certain shortcomings are inherent in the method of analysis presented in the foregoing table.  For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates.  Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types of assets may lag behind changes in market rates.  Additionally, in the event of a change in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the table.  Therefore, we do not rely on a gap analysis to manage our interest rate risk, but rather we use what we believe to be the more reliable simulation model relating to changes in net interest income.

Based on simulation modeling which assumes gradual changes in interest rates over a one-year period and no growth in balances of our interest earning assets and interest bearing liabilities at June 30, 2018 and December 31, 2017, we believe that our net interest income would change due to changes in interest rates as follows (dollars in thousands):  

Gradual	Changes in Net Interest Income Over One Year Horizon
Changes in	June 30, 2018					December 31, 2017
Levels of	Dollar			Percentage		Dollar			Percentage
Interest Rates	Change			Change		Change			Change
+ 2.00%	$	54,542		8.43	%	$	46,967		7.33	%
+ 1.00%	27,675			4.28		25,565			3.99
- 1.00%	(27,058		)	(4.18	)	(33,889		)	(5.29	)

In the interest rate sensitivity table above, changes in net interest income between June 30, 2018 and December 31, 2017 reflect changes in the composition of interest earning assets and interest bearing liabilities, related interest rates, repricing frequencies, and the fixed or variable characteristics of the interest earning assets and interest bearing liabilities.  The changes in net interest income incorporate the impact of loan floors as well as shifts from low cost deposits to higher cost certificates of deposit in a rising rate environment.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures: An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Act”)) was carried out as of June 30, 2018 under the supervision and with the participation of our Chief Executive Officer, Chief Financial Officer and several other members of our senior management.  Our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2018, our disclosure controls and procedures were effective in ensuring that the information we are required to disclose in the reports we file or submit under the Act is (i) accumulated and communicated to our management (including the Chief Executive Officer and Chief Financial Officer) to allow timely decisions regarding required disclosure, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control Over Financial Reporting: During the quarter ended June 30, 2018, no change occurred in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

We do not expect that our disclosure controls and procedures and internal control over financial reporting will prevent all error and all fraud.  A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met.  Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns in controls or procedures can occur because of simple error or mistake.  Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control.  The design of any control procedure also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.  Because of the inherent limitations in a cost-effective control procedure, misstatements due to error or fraud may occur and not be detected.

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PART II.        OTHER INFORMATION

Item 1.   Legal Proceedings

We are involved from time to time as plaintiff or defendant in various legal actions arising in the normal course of our businesses.  While the ultimate outcome of pending proceedings cannot be predicted with certainty, it is the opinion of management, after consultation with counsel representing us in such proceedings, that the resolution of these proceedings should not have a material adverse effect on our consolidated financial position or results of operation.

Item 1A.   Risk Factors

Except as set forth below, there have been no material changes to the risk factors disclosed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2017.

The discontinuation of our national residential mortgage origination business could adversely affect our results of operations.

On April 12, 2018, we announced the discontinuation of our national mortgage origination business, which includes substantially all originations outside of our consumer banking footprint in the Chicagoland area. As a result, we expect to incur one-time pre-tax costs of approximately $37 million to $41 million. It may take longer than we expect to complete the winding down of this business and we may incur costs that exceed our estimated costs. Although we expect the net impact of anticipated reductions in our quarterly net interest income from the Mortgage Banking Segment, mortgage origination revenue from the Mortgage Banking Segment, mortgage servicing revenue from the Mortgage Banking Segment and non-interest expense from the Mortgage Banking Segment to increase our quarterly pre-tax income from the first quarter of 2018 by approximately $7.4 million by the first quarter of 2019, no assurance can be given as to when or whether we will realize this benefit. In addition, we expect revenues from the Mortgage Banking Segment to decrease more quickly than expenses from the Mortgage Banking Segment, as we stopped accepting locked loans and loan applications from our national residential mortgage origination business during the second quarter of 2018.

Our merger agreement with Fifth Third may be terminated in accordance with its terms and the merger may not be completed.

Our merger agreement with Fifth Third is subject to a number of conditions which must be fulfilled in order to complete the merger. Those conditions include: approval of the merger and a charter amendment by our common stockholders, receipt of requisite regulatory approvals, absence of orders prohibiting completion of any of the proposed transactions, effectiveness of Fifth Third’s registration statement filed with the SEC for the shares of Fifth Third stock to be issued in connection with the merger, the accuracy of the representations and warranties in the merger agreement by both parties (subject to the materiality standards set forth in the merger agreement) and the performance by both parties of their covenants and agreements under the merger agreement, and the receipt by both parties of legal opinions from their respective tax counsels. These conditions to the closing of the merger may not be fulfilled in a timely manner or at all, and, accordingly, the merger may not be completed. In addition, the parties can mutually decide to terminate the merger agreement at any time, before or after stockholder approval, and we or Fifth Third may elect to terminate the merger agreement in certain other circumstances.

Termination of the merger agreement could negatively impact us.

If the merger is not completed for any reason, including as a result of a failure to obtain the requisite approvals from our stockholders, our ongoing business may be adversely impacted and, without realizing any of the anticipated benefits of completing the merger, we would be subject to a number of risks, including the following:

• we may experience negative reactions from the financial markets, including negative impacts on our stock price (including to the extent that the current market price reflects a market assumption that the merger will be completed);

• we may experience negative reactions from our customers, vendors and employees;

• we will have incurred substantial expenses and will be required to pay certain costs relating to the merger, whether or not the merger is completed;

• the merger agreement places certain restrictions on the conduct of our businesses prior to completion of the merger. Such restrictions, the waiver of which is subject to the consent of Fifth Third (not to be unreasonably withheld, conditioned or delayed), may prevent us from making certain acquisitions or taking certain other specified actions during the pendency of the merger; and

79

• matters relating to the merger (including integration planning) will require substantial commitments of time and resources by our management, which would otherwise have been devoted to other opportunities that may have been beneficial to us as an independent company.

If the merger agreement is terminated and our board of directors seeks another merger or business combination, our stockholders cannot be certain that we will be able to find a party willing to offer equivalent or more attractive consideration than the consideration Fifth Third has agreed to provide in the merger, or that such other merger or business combination will be completed. If the merger agreement is terminated under certain circumstances, we may be required to pay a termination fee of $151.2 million to Fifth Third.

We will be subject to business uncertainties and contractual restrictions while the merger is pending.

Uncertainty about the effect of the merger on employees and customers may have an adverse effect on us. These uncertainties may impair our ability to attract, retain and motivate key personnel until the merger is completed, and could cause customers and others that deal with us to seek to change existing business relationships with us. Retention of certain employees may be challenging during the pendency of the merger, as certain employees may experience uncertainty about their future roles. If key employees depart, our business could be negatively impacted. In addition, the merger agreement restricts us from making certain acquisitions and taking other specified actions without the consent of Fifth Third until the merger occurs. These restrictions may prevent us from pursuing attractive business opportunities that may arise prior to the completion of the merger.

The merger agreement contains provisions that may discourage other companies from trying to acquire us for greater merger consideration.

The merger agreement contains provisions that may discourage a third party from submitting a business combination proposal to us that might result in greater value to our stockholders than the merger or may result in a potential competing acquirer proposing to pay a lower per share price to acquire us than it might otherwise have proposed to pay absent such provisions. These provisions include a general prohibition on us soliciting, or, subject to certain exceptions relating to the exercise of fiduciary duties by our board of directors, entering into discussions with any third party regarding any acquisition proposal or offers for competing transactions. We also have an unqualified obligation to submit the proposal to approve the merger to a vote by our stockholders, even if we receive an alternative acquisition proposal that our board of directors believes is superior to the proposed merger with Fifth Third, unless the merger agreement has been terminated in accordance with its terms. In addition, we may be required to pay Fifth Third a termination fee of $151.2 million upon termination of the merger agreement in certain circumstances involving acquisition proposals for competing transactions.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth information for the three months ended June 30, 2018 with respect to our repurchases of our outstanding common shares:

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in Thousands)
April 1, 2018 — April 30, 2018	—	$	—	—	$	—
May 1, 2018 — May 31, 2018	—	—		—	—
June 1, 2018 — June 30, 2018	—	—		—	—
Total	—	$	—	—

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Item 6.   Exhibits

81

Exhibit Number	Description
2.1	Agreement and Plan of Merger, dated as of July 14, 2013, by and among the Registrant and Taylor Capital Group, Inc. (incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on July 18, 2013 (File No.0-24566-01))
2.2	Amendment, dated as of June 30, 3014, to Agreement and Plan of Merger, dated as of July 14, 2013, by and between the Registrant and Taylor Capital Group, Inc. (incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on July 1, 2014 (File No.0-24566-01))
2.3	Letter Agreement, dated as of June 30, 3014, by and between the Registrant and Taylor Capital Group, Inc. (incorporated herein by reference to Exhibit 2.2 to the Registrant's Current Report on Form 8-K filed on July 1, 2014 (File No.0-24566-01))
2.4	Agreement and Plan of Merger, dated as of May 1, 2006, by and among the Registrant, MBFI Acquisition Corp. and First Oak Brook Bancshares, Inc. (“First Oak Brook”)(incorporated herein by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on May 2, 2006 (File No.0-24566-01))
2.5	Purchase and Assumption Agreement among Federal Deposit Insurance Corporation, Receiver of Corus Bank, National Association, Chicago, Illinois, Federal Deposit Insurance Corporation and MB Financial Bank, N.A., dated as of September 11, 2009 (incorporated herein by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on September 17, 2009 (File No.0-24566-01))
2.6	Purchase and Assumption Agreement among Federal Deposit Insurance Corporation, Receiver of Broadway Bank, Chicago, Illinois, Federal Deposit Insurance Corporation and MB Financial Bank, N.A., dated as of April 23, 2010 (incorporated herein by reference to Exhibit 2.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 (File No. 0-24566-01))
2.7	Purchase and Assumption Agreement among Federal Deposit Insurance Corporation, Receiver of New Century Bank, Chicago, Illinois, Federal Deposit Insurance Corporation and MB Financial Bank, N.A., dated as of April 23, 2010 (incorporated herein by reference to Exhibit 2.7 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 (File No. 0-24566-01))
2.8	Agreement and Plan of Merger, dated as of November 20, 2015, by and between the Registrant and American Chartered Bancorp, Inc. (incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on November 24, 2015 (File No.001-36599))
2.9	Agreement and Plan of Merger by and among Fifth Third Bancorp, Fifth Third Financial Corporation and MB Financial, Inc., dated as of May 20, 2018 (incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on May 23, 2018 (File No. 001-36599))
3.1	Charter of the Registrant, as amended (incorporated herein by reference to Exhibit 4.1 to the Post-Effective Amendment No. One on Form S-8 to the Registrant’s Form S-4 Registration Statement filed on August 26, 2016 (Registration No. 333-208966))
3.1A	Articles Supplementary to the Charter of the Registrant for the Registrant’s Perpetual Non-Cumulative Preferred Stock, Series A (incorporated herein by reference to Exhibit 3.3 to the Registrant’s Registration Statement on Form 8-A filed on August 14, 2014 (File No.001-36599))
3.1B	Articles Supplementary to the Charter of the Registrant for the Registrant’s Cumulative Voting Convertible Preferred Stock, Series B (incorporated herein by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on August 30, 2016 (File No.001-36599))

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Exhibit Number	Description
3.1C	Articles Supplementary to the Charter of the Registrant for the Registrant’s 6.00% Non-Cumulative Perpetual Preferred Stock, Series C (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on November 21, 2017 (File No.001-36599))
3.2	By-laws of the Registrant, as amended (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on March 2, 2015 (File No. 001-36599))
4.1	The Registrant hereby agrees to furnish to the Commission, upon request, the instruments defining the rights of the holders of each issue of long-term debt of the Registrant and its consolidated subsidiaries
4.2	Deposit Agreement, dated as of November 22, 2017, between the Registrant, Computershare Inc. and Computershare Trust Company, N.A., as depositary, and the holders from time to time of the depositary receipts described therein (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on November 22, 2017 (File No.001-36599))
10.1	Reserved
10.2	Amended and Restated Employment Agreement between the Registrant and Mitchell Feiger (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.4	Form of Change and Control Severance Agreement between MB Financial Bank, National Association and Jill E. York (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.4B	Form of Change and Control Severance Agreement between MB Financial Bank, National Association and each of Brian Wildman and Rosemarie Bouman (incorporated herein by reference to Exhibit 10.4B to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.4C	Form of Change in Control Severance Agreement between MB Financial Bank, National Association and Mark A. Heckler (incorporated herein by reference to Exhibit 10.4C to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 (File No. 0-24566-01))
10.4D	Form of Change in Control Severance Agreement between MB Financial Bank, National Association and Randall T. Conte (incorporated herein by reference to Exhibit 10.4D to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (File No. 001-36599))
10.5	Reserved
10.5A	Reserved
10.5B	Reserved
10.7	MB Financial, Inc. Third Amended and Restated Omnibus Incentive Plan (the “Omnibus Incentive Plan”) (incorporated herein by reference to Appendix A to the Registrant’s definitive proxy statement filed on April 11, 2014 (File No. 0-24566-01))

83

Exhibit Number	Description
10.8	MB Financial Stock Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.9	MB Financial Non-Stock Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.9 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.10	Reserved
10.11	Agreement Regarding Salary Adjustment and Portion of Salary Payable by Stock, dated as of December 21, 2009, between MB Financial, Inc. and Mitchell Feiger (incorporated herein by reference to Exhibit 10.11 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-24566-01))
10.11A	Form of Agreement Regarding Salary Adjustment and Portion of Salary Payable by Stock between MB Financial, Inc. and Rosemarie Bouman, Mark A. Heckler and Brian J. Wildman (incorporated herein by reference to Exhibit 10.11A to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 (File No. 0-24566-01))
10.12	Agreement Regarding Salary Adjustment and Portion of Salary Payable by Stock, dated as of December 21, 2009, between MB Financial, Inc. and Jill E. York (incorporated herein by reference to Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-24566-01))
10.13	Amended and Restated Employment Agreement between MB Financial Bank, N.A. and Ronald D. Santo (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on December 14, 2004 (File No. 0-24566-01))
10.13A	Amendment to Amended and Restated Employment Agreement between MB Financial Bank, N.A. and Ronald D. Santo ((incorporated herein by reference to Exhibit 10.13A to the Registrant’s Annual Report on Form 10-K/A for the year ended December 31, 2006, filed on March 2, 2007 (File No. 0-24566-01))
10.15	Tax Gross Up Agreements between the Registrant and each of Mitchell Feiger, Jill E. York and Brian Wildman (incorporated herein by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.15A	Tax Gross Up Agreement between the Registrant and Rosemarie Bouman (incorporated herein by reference to Exhibit 10.15A to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.16	Form of Incentive Stock Option Agreement for Executive Officers under the Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.16 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 (File No. 0-24566-01))
10.17	Form of Non-Qualified Stock Option Agreement for Directors under the Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.17 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 (File No. 0-24566-01))

84

Exhibit Number	Description
10.18	Form of Restricted Stock Agreement for Executive Officers under the Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.18 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 (File No. 0-24566-01))
10.18A	Amendment to Form of Incentive Stock Option Agreement and Form of Restricted Stock Agreement for Executive Officers under the Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.18A to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.18B	Form of Performance-Based Restricted Stock Agreement for Executive Officers under the Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.18B to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 (File No. 0-24566-01))
10.18C	Form of Restricted Stock Agreement for grants on December 2, 2009 to Mitchell Feiger and Jill E. York (incorporated herein by reference to Exhibit 10.18C to the Registrant’s Current Report on Form 8-K filed on December 7, 2009 (File No. 0-24566-01))
10.19	Form of Restricted Stock Agreement for Directors under the Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.19 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 (File No. 0-24566-01))
10.20	First Oak Brook Bancshares, Inc. Incentive Compensation Plan (incorporated herein by reference to Appendix A to the definitive proxy statement filed by First Oak Brook on March 30, 2004 (File No. 0-14468))
10.20A	Amendment to First Oak Brook Bancshares, Inc. Incentive Compensation Plan ((incorporated herein by reference to Exhibit 10.20A to the Registrant’s Annual Report on Form 10-K/A for the year ended December 31, 2006, filed on March 2, 2007 (File No. 0-24566-01))
10.21	First Oak Brook Bancshares, Inc. 2001 Stock Incentive Plan (incorporated herein by reference to Appendix A to the definitive proxy statement filed by First Oak Brook on April 2, 2001 (File No. 0-14468))
10.21A	Amendment to First Oak Brook Bancshares, Inc. 2001 Stock Incentive Plan ((incorporated herein by reference to Exhibit 10.21A to the Registrant’s Annual Report on Form 10-K/A for the year ended December 31, 2006, filed on March 2, 2007 (File No. 0-24566-01))
10.22	First Oak Brook Bancshares, Inc. Directors Stock Plan (incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 filed by First Oak Brook on October 25, 1999 (File No. 333-89647))
10.22A	Amendment to First Oak Brook Bancshares, Inc. Directors Stock Plan (incorporated herein by reference to Exhibit 10.22A to the Registrant’s Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2007 filed on May 15, 2007 (File No. 0-24566-01))
10.23	Letter Agreement, dated as of June 30, 2014, by and among the Registrant and certain principal stockholders of Taylor Capital Group, Inc. (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on July 1, 2014 (File No.0-24566-01))
10.23A	Supplemental Agreement, dated as of August 15, 2014, by and among the Registrant, MB Financial Bank, N.A., and Jennifer W. Steans, as representative of certain principal stockholders of Taylor Capital Group, Inc. (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on August 20, 2014 (File No.001-36599))

85

Exhibit Number	Description
10.23B	Escrow Agreement, dated as of August 15, 2014, by and among MB Financial Bank, N.A., Jennifer W. Steans, as representative of certain principal stockholders of Taylor Capital Group, Inc., and The Northern Trust Company, as escrow agent (incorporated herein by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on August 20, 2014 (File No.001-36599))
10.23C	Second Amendment to Letter Agreement Re: Escrow of Merger Consideration, dated as of December 16, 2016, by and among the Registrant, MB Financial Bank, N.A., and Jennifer W. Steans, as representative of certain principal stockholders of Taylor Capital Group, Inc. (incorporated herein by reference to Exhibit 10.23C to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 001-36599))
10.24	Reserved
10.24A	Amended and Restated Employment Agreement by and between the Registrant, MB Financial Bank, N.A. and Mark A. Hoppe (incorporated herein by reference to Exhibit 10.24A to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 001-36599))
10.25	Taylor Capital Group, Inc. Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.1 to the Annual Report on Form 10-K of Taylor Capital Group, Inc. for the year ended December 31, 2008 (File No. 000-50034))
10.25A	Trust Under Taylor Capital Group, Inc. Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.17 of the Registration Statement on Form S-1 of Taylor Capital Group, Inc. filed May 24, 2002 (Registration No. 333-89158))
10.25B	Amendment to the Taylor Capital Group, Inc. Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.25B to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (File No. 001-36599))
10.26	Taylor Capital Group, Inc. Senior Officer Change in Control Severance Plan (incorporated herein by reference to Exhibit 10.1 of the Quarterly Report on Form 10-Q of Taylor Capital Group, Inc. for the quarterly period ended June 30, 2009 (File No. 000-50034))
10.26A	Amendment to the Taylor Capital Group, Inc. Senior Officer Change in Control Severance Plan (incorporated herein by reference to Exhibit 10.26A to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (File No. 001-36599))
10.27	First Oak Brook Bancshares, Inc. Executive Deferred Compensation Plan (incorporated by reference to Exhibit 10.3 to First Oak Brook’s Annual Report on Form 10-K for the year ended December 31, 1997 (File No. 0-14468))
10.27A	Amendment to First Oak Brook Bancshares, Inc. Executive Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.27A to the Registrant’s Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2007 filed on May 15, 2007 (File No. 0-24566-01))
10.29	Form of Transitional Employment Agreement between the Registrant (as successor to First Oak Brook) and Rosemarie Bouman (incorporated herein by reference to Exhibit 10.10 to First Oak Brook’s Annual Report on Form 10-K for the year ended December 31, 1998 (File No. 0-14468))
10.29A	First Amendment to Transitional Employment Agreement between the Registrant (as successor to First Oak Brook) and Rosemarie Bouman ((incorporated herein by reference to Exhibit 10.28A to the Registrant’s Annual Report on Form 10-K/A for the year ended December 31, 2006, filed March 2, 2007 (File No. 0-24566-01))

86

Exhibit Number	Description
10.29B	Second Amendment to Transitional Employment Agreement between the Registrant (as successor to First Oak Brook) and Rosemarie Bouman ((incorporated herein by reference to Exhibit 10.28B to the Registrant’s Annual Report on Form 10-K/A for the year ended December 31, 2006, filed March 2, 2007 (File No. 0-24566-01))
10.30	Form of Performance Share Unit Award Agreement (incorporated herein by reference to Exhibit 10.30 to the Registrant's Current Report on Form 8-K filed on September 5, 2012 (File No. 0-24566-01))
10.31	Form of Incentive Stock Option Agreement (Management Committee) (incorporated herein by reference to Exhibit 10.31 to the Registrant's Current Report on Form 8-K filed on September 5, 2012 (File No. 0-24566-01))
10.32	Form of Restricted Stock Agreement (Management Committee) (incorporated herein by reference to Exhibit 10.32 to the Registrant's Current Report on Form 8-K filed on September 5, 2012 (File No. 0-24566-01))
10.32A	Form of Restricted Stock Unit Agreement (Management Committee) (incorporated herein by reference to Exhibit 10.32A to the Registrant's Current Report on Form 8-K filed on September 5, 2012 (File No. 0-24566-01))
31.1	Rule 13a — 14(a)/15d — 14(a) Certification (Chief Executive Officer)*
31.2	Rule 13a — 14(a)/15d — 14(a) Certification (Chief Financial Officer)*
32	Section 1350 Certifications*
101	The following financial statements from the MB Financial, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated balance sheets, (ii) consolidated statements of operations, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of cash flows and (v) the notes to consolidated financial statements*

*  Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MB FINANCIAL, INC.

(registrant)

Date:	August 9, 2018	By:	/s/Mitchell Feiger
			Mitchell Feiger
			President and Chief Executive Officer
			(Principal Executive Officer)
Date:	August 9, 2018	By:	/s/Randall T. Conte
			Randall T. Conte
			Vice President and Chief Financial Officer
			(Principal Financial Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION 

I, Mitchell Feiger, certify that: 

1.           I have reviewed this Quarterly Report on Form 10-Q of MB Financial, Inc.; 

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  

4.           The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  

a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  

b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and  

5.           The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): 

a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and  

b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.  

Date:  August 9, 2018

/s/ Mitchell Feiger

Mitchell Feiger

President and Chief Executive Officer 

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Randall T. Conte, certify that: 

 1.           I have reviewed this Quarterly Report on Form 10-Q of MB Financial, Inc.; 

 2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4.           The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

 b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and  

5.           The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

  a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

 b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.  

 Date:  August 9, 2018

/s/ Randall T. Conte

Randall T. Conte

Vice President and Chief Financial Officer 

EX-32

EXHIBIT 32

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned hereby certifies in his or her capacity as an officer of MB Financial, Inc. (the Company) that the Quarterly Report of the Company on Form 10-Q for the quarter ended June 30, 2018 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such report.

Date:	August 9, 2018	/s/Mitchell Feiger
		Mitchell Feiger
		President and Chief Executive Officer
Date:	August 9, 2018	/s/Randall T. Conte
		Randall T. Conte
		Vice President and Chief Financial Officer

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 2018
Document and Entity Information
Entity Registrant Name	MB FINANCIAL INC /MD
Entity Central Index Key	0001139812
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock shares outstanding		84,200,745
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 373,448	$ 397,880
Interest earning deposits with banks	119,672	181,341
Total cash and cash equivalents	493,120	579,221
Investment securities:
Securities available for sale, at fair value	1,647,260	1,408,326
Securities held to maturity, at amortized cost ($940,203 fair value at June 30, 2018 and $992,455 at December 31, 2017)	923,036	959,082
Marketable equity securities	10,922	0
Non-marketable securities - FHLB and FRB stock	115,453	114,111
Total investment securities	2,696,671	2,481,519
Loans held for sale	423,367	548,578
Loans:
Total loans, excluding purchased credit-impaired loans	13,719,244	13,846,318
Purchased credit-impaired loans	101,001	119,744
Total loans	13,820,245	13,966,062
Less: Allowance for loan and lease losses	162,790	157,710
Net loans	13,657,455	13,808,352
Lease investments, net	433,505	409,051
Premises and equipment, net	281,458	286,690
Cash surrender value of life insurance	205,982	203,602
Goodwill	999,925	1,003,548
Other intangibles	50,968	54,766
Mortgage servicing rights, at fair value	296,629	276,279
Other real estate owned, net	10,869	9,736
Other real estate owned related to FDIC-assisted transactions	2,908	4,788
Other assets	413,700	420,810
Total assets	19,966,557	20,086,940
Deposits:
Non-interest bearing	6,347,208	6,381,512
Interest bearing	8,575,455	8,576,866
Total deposits	14,922,663	14,958,378
Short-term borrowings	651,462	861,039
Long-term borrowings	730,292	505,158
Junior subordinated notes issued to capital trusts	194,450	211,494
Accrued expenses and other liabilities	518,997	541,048
Total liabilities	17,017,864	17,077,117
STOCKHOLDERS’ EQUITY
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at June 30, 2018 and December 31, 2017; Series A, 8% perpetual non-cumulative, none issued and outstanding at June 30, 2018 and 4,000,000 shares issued and outstanding at December 31, 2017, $25 liquidation value; Series C, 6% perpetual non-cumulative, 200,000 shares issued and outstanding at June 30, 2018 and December 31, 2017, $1,000 liquidation value)	194,719	309,999
Common stock, ($0.01 par value; authorized 120,000,000 shares at June 30, 2018 and December 31, 2017; issued 86,121,465 shares at June 30, 2018 and 85,801,702 shares at December 31, 2017)	861	858
Additional paid-in capital	1,698,057	1,691,007
Retained earnings	1,127,814	1,065,303
Accumulated other comprehensive (loss) income	(9,818)	3,584
Less: 1,926,871 and 1,883,810 shares of treasury common stock, at cost, at June 30, 2018 and December 31, 2017, respectively	(62,940)	(60,928)
Total stockholders’ equity	2,948,693	3,009,823
Total liabilities and stockholders’ equity	$ 19,966,557	$ 20,086,940

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Securities held to maturity, at amortized cost, fair value	$ 940,203	$ 992,455
Preferred stock, par or stated value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares (in shares)	120,000,000	120,000,000
Common stock, issued shares (in shares)	86,121,465	85,801,702
Treasury stock, shares (in shares)	1,926,871	1,883,810
Series A Preferred Stock
Preferred stock, dividend rate (percent)	8.00%	8.00%
Preferred stock, shares issued (in shares)	0	4,000,000
Preferred stock, shares outstanding (in shares)	0	4,000,000
Preferred stock, liquidation preference per share (in dollars per share)	$ 25	$ 25
Series C Preferred Stock
Preferred stock, dividend rate (percent)	6.00%	6.00%
Preferred stock, shares issued (in shares)	200,000	200,000
Preferred stock, shares outstanding (in shares)	200,000	200,000
Preferred stock, liquidation preference per share (in dollars per share)	$ 1,000	$ 1,000

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Loans:
Taxable	$ 164,401,000	$ 143,426,000	$ 321,520,000	$ 277,163,000
Nontaxable	2,330,000	2,791,000	4,601,000	5,671,000
Investment securities:
Taxable	10,578,000	8,717,000	18,512,000	17,839,000
Nontaxable	9,439,000	9,837,000	18,915,000	19,810,000
Other interest earning accounts and Federal funds sold	244,000	228,000	375,000	427,000
Total interest income	186,992,000	164,999,000	363,923,000	320,910,000
Interest expense:
Deposits	17,386,000	8,793,000	32,418,000	16,268,000
Short-term borrowings	2,769,000	3,912,000	5,285,000	6,292,000
Long-term borrowings and junior subordinated notes	7,768,000	3,300,000	13,770,000	6,313,000
Total interest expense	27,923,000	16,005,000	51,473,000	28,873,000
Net interest income	159,069,000	148,994,000	312,450,000	292,037,000
Provision for credit losses	6,219,000	9,699,000	13,727,000	13,433,000
Net interest income after provision for credit losses	152,850,000	139,295,000	298,723,000	278,604,000
Non-interest income:
Mortgage banking revenue	18,926,000	30,152,000	43,973,000	58,608,000
Lease financing revenue, net	22,918,000	18,401,000	47,628,000	39,819,000
Treasury management fees	15,066,000	14,499,000	30,222,000	29,188,000
Wealth management fees	8,969,000	8,498,000	18,090,000	17,018,000
Card fees	5,654,000	4,413,000	10,441,000	8,979,000
Capital markets and international banking fees	3,785,000	3,586,000	6,783,000	6,839,000
Consumer and other deposit service fees	2,929,000	3,285,000	5,841,000	6,648,000
Brokerage fees	1,050,000	1,250,000	1,914,000	2,375,000
Loan service fees	2,148,000	2,037,000	4,393,000	4,006,000
Increase in cash surrender value of life insurance	1,272,000	1,301,000	2,380,000	2,589,000
Net (loss) gain on investment securities	(86,000)	137,000	(260,000)	368,000
Net loss on disposal of other assets	(397,000)	(4,000)	(754,000)	(127,000)
Other operating income	6,072,000	3,615,000	10,457,000	7,310,000
Total non-interest income	88,306,000	91,170,000	181,108,000	183,620,000
Non-interest expenses:
Salaries and employee benefits expense	123,478,000	102,566,000	229,992,000	204,117,000
Occupancy and equipment expense	16,451,000	15,284,000	33,880,000	30,328,000
Computer services and telecommunication expense	10,871,000	9,785,000	22,027,000	19,225,000
Advertising and marketing expense	3,342,000	3,245,000	7,205,000	6,406,000
Professional and legal expense	8,887,000	2,450,000	10,785,000	5,141,000
Other intangibles amortization expense	1,896,000	2,086,000	3,798,000	4,176,000
Branch exit and facilities impairment charges	340,000	6,589,000	340,000	5,907,000
Net loss recognized on other real estate owned and other related expense	1,048,000	690,000	1,095,000	1,534,000
Loss on extinguishment of debt	0	0	3,136,000	0
Goodwill impairment loss	3,623,000	0	3,623,000	0
Other operating expenses	23,056,000	23,517,000	44,997,000	45,720,000
Total non-interest expenses	192,992,000	166,212,000	360,878,000	322,554,000
Income before income taxes	48,164,000	64,253,000	118,953,000	139,670,000
Income tax expense	9,631,000	19,787,000	23,663,000	40,667,000
Net income	38,533,000	44,466,000	95,290,000	99,003,000
Dividends on preferred shares	3,000,000	2,002,000	6,100,000	4,005,000
Return from preferred stockholders due to redemption	0	0	(15,280,000)	0
Net income available to common stockholders	$ 35,533,000	$ 42,464,000	$ 104,470,000	$ 94,998,000
Common share data:
Basic earnings per common share (in dollars per share)	$ 0.42	$ 0.51	$ 1.24	$ 1.13
Diluted earnings per common share (in dollars per share)	$ 0.42	$ 0.50	$ 1.23	$ 1.12
Weighted average common shares outstanding for basic earnings per common share (in shares)	84,253,966	83,842,963	84,160,344	83,753,195
Diluted weighted average common shares outstanding for diluted earnings per common share (in shares)	85,251,810	84,767,414	85,074,626	84,773,271

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 38,533	$ 44,466	$ 95,290	$ 99,003
Unrealized holding (gains) losses on investment securities, net of reclassification adjustments	(7,968)	3,979	(20,060)	10,033
Reclassification adjustment for amortization of unrealized losses (gains) on investment securities transferred to held to maturity from available for sale	115	(350)	266	(823)
Reclassification adjustments for losses (gains) included in net income	86	(137)	260	(368)
Other comprehensive (loss) income, before tax	(7,767)	3,492	(19,534)	8,842
Income tax expense (benefit) related to items of other comprehensive (loss) income	2,097	(1,387)	5,225	(3,512)
Other comprehensive (loss) income, net of tax	(5,670)	2,105	(14,309)	5,330
Comprehensive income	$ 32,863	$ 46,571	$ 80,981	$ 104,333

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Tax	Treasury Stock	Non-controlling Interest
Beginning balance at Dec. 31, 2016	$ 2,579,209	$ 115,572	$ 856	$ 1,678,826	$ 838,892	$ 5,190	$ (60,384)	$ 257
Increase (Decrease) in Stockholders' Equity
Net income	99,003				99,003
Other comprehensive income (loss), net of tax	5,330					5,330
Cash dividends declared on preferred shares	(4,005)				(4,005)
Cash dividends declared on common shares	(33,960)				(33,960)
Restricted common stock activity, net of tax	(3,287)			(6,837)			3,550
Stock option activity, net of tax	449		1	448
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan	(2,556)			461			(3,017)
Stock-based compensation expense	8,924			8,924
Purchase of additional investment in subsidiary from minority owners	(827)			(570)				(257)
Ending balance at Jun. 30, 2017	2,648,280	115,572	857	1,681,252	899,930	10,520	(59,851)	0
Increase (Decrease) in Stockholders' Equity
Cumulative effect of accounting changes	(297)				(1,204)	907
Beginning balance at Dec. 31, 2017	3,009,823	309,999	858	1,691,007	1,065,303	3,584	(60,928)
Increase (Decrease) in Stockholders' Equity
Net income	95,290				95,290
Other comprehensive income (loss), net of tax	(14,309)					(14,309)
Redemption of preferred stock	(100,000)	(115,280)			15,280
Cash dividends declared on preferred shares	(6,100)				(6,100)
Cash dividends declared on common shares	(40,755)				(40,755)
Restricted common stock activity, net of tax	(3,209)		1	(3,210)
Stock option activity, net of tax	430		2	428
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan	(1,326)			686			(2,012)
Stock-based compensation expense	9,146			9,146
Ending balance at Jun. 30, 2018	$ 2,948,693	$ 194,719	$ 861	$ 1,698,057	$ 1,127,814	$ (9,818)	$ (62,940)	$ 0

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.48	$ 0.40

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From Operating Activities
Net income	$ 95,290,000	$ 99,003,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment and leased equipment	55,690,000	44,922,000
Branch exit and facilities impairment charges	340,000	5,907,000
Compensation expense for share-based payment plans	9,146,000	8,924,000
Net loss (gain) on sales of premises and equipment and leased equipment	684,000	(752,000)
Amortization of other intangibles	3,798,000	4,176,000
Provision for credit losses	13,727,000	13,433,000
Deferred income tax expense	26,233,000	22,072,000
Amortization of premiums and discounts on investment securities, net	16,731,000	20,754,000
Accretion of discounts on loans, net	(9,239,000)	(13,858,000)
Net loss (gain) on investment securities	260,000	(368,000)
Proceeds from sale of loans held for sale	2,046,650,000	2,340,861,000
Origination of loans held for sale	(1,949,399,000)	(2,321,902,000)
Net loss on sale of loans held for sale	13,732,000	887,000
Origination of mortgage servicing rights	(25,041,000)	(27,568,000)
Change in fair value of mortgage servicing rights	4,826,000	16,677,000
Net loss on other real estate owned	737,000	1,313,000
Increase in cash surrender value of life insurance	(2,380,000)	(2,589,000)
Loss on extinguishment of debt	3,136,000	0
Goodwill impairment loss	3,623,000	0
Increase in other assets, net	13,370,000	2,797,000
Decrease in other liabilities, net	(58,110,000)	(37,530,000)
Net cash provided by operating activities	263,804,000	177,159,000
Cash Flows From Investing Activities
Proceeds from sales of investment securities available for sale	2,610,000	2,271,000
Proceeds from maturities and calls of investment securities available for sale	202,918,000	167,856,000
Purchases of investment securities available for sale	(480,158,000)	(47,016,000)
Proceeds from maturities and calls of investment securities held to maturity	62,668,000	72,250,000
Purchases of investment securities held to maturity	(26,443,000)	(29,457,000)
Purchase of marketable equity securities	(312,000)	0
Proceeds from sales of marketable equity securities	178,000	0
Purchases of non-marketable securities - FHLB and FRB stock	(33,212,000)	(110,711,000)
Redemption of non-marketable securities - FHLB and FRB stock	31,870,000	93,783,000
Net decrease (increase) in loans	143,580,000	(832,802,000)
Purchases of mortgage servicing rights	(135,000)	(786,000)
Purchases of premises and equipment and leased equipment	(76,901,000)	(78,833,000)
Proceeds from sales of premises and equipment and leased equipment	7,361,000	14,227,000
Proceeds from sale of other real estate owned	2,766,000	16,686,000
Proceeds from sale of other real estate owned related to FDIC-assisted transactions	1,213,000	2,587,000
Purchase of additional investment in subsidiary from minority owners	0	(827,000)
Net proceeds from FDIC related covered assets	434,000	(227,000)
Net cash used in investing activities	(161,563,000)	(730,999,000)
Cash Flows From Financing Activities
Net (decrease) increase in deposits	(35,715,000)	151,371,000
Proceeds from short-term borrowings - FHLB advances	140,000,000	2,350,000,000
Principal paid on short-term borrowings - FHLB advances	(550,000,000)	(2,125,000,000)
Net increase in other short-term borrowings	15,423,000	49,070,000
Proceeds from long-term borrowings	451,827,000	262,864,000
Principal paid on long-term borrowings	(41,693,000)	(94,494,000)
Redemption of junior subordinated notes issued to capital trusts	(20,619,000)	0
Redemption of preferred stock	(100,000,000)	0
Treasury stock transactions, net	(1,326,000)	(2,556,000)
Stock options exercised	2,803,000	1,376,000
Dividends paid on preferred stock	(8,100,000)	(4,005,000)
Dividends paid on common stock	(40,942,000)	(33,998,000)
Net cash (used in) provided by financing activities	(188,342,000)	554,628,000
Net (decrease) increase in cash and cash equivalents	(86,101,000)	788,000
Cash and cash equivalents:
Beginning of period	579,221,000	463,469,000
End of period	493,120,000	464,257,000
Cash payments for:
Interest paid to depositors and on other borrowed funds	50,873,000	27,666,000
Income tax payments, net	1,951,000	2,486,000
Supplemental Schedule of Noncash Investing Activities:
Investment securities held to maturity purchased not settled	8,806,000	2,553,000
Loans transferred to other real estate owned	3,890,000	2,658,000
Loans transferred to other real estate owned related to FDIC-assisted transactions	0	2,321,000
Loans transferred to repossessed assets	1,299,000	969,000
Operating leases rewritten as direct finance leases included as loans	2,359,000	1,547,000
Long-term borrowings transferred to short-term borrowings	185,000,000	150,000,000
Adjustments to noncash assets previously acquired:
Loans	0	1,846,000
Goodwill	0	(1,113,000)
Other assets	0	(733,000)
Total adjustments to noncash assets previously acquired	$ 0	$ 0

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Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

These unaudited consolidated financial statements include the accounts of MB Financial, Inc., a Maryland corporation (the “Company”), and its subsidiaries, including its wholly owned national bank subsidiary, MB Financial Bank, N.A. (“MB Financial Bank”), based in Chicago, Illinois. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition, results of operations and cash flows for the interim periods have been made. The results of operations for the six months endedJune 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year.

These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and industry practice. Certain information in footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP and industry practice has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ from those estimates.

Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity.

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New Authoritative Accounting Guidance

6 Months Ended

Jun. 30, 2018

Accounting Changes and Error Corrections [Abstract]

New Authoritative Accounting Guidance

New Authoritative Accounting Guidance

ASC Topic 805 "Business Combinations." New authoritative accounting guidance under ASC Topic 805 "Business Combinations" amends prior guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 606 "Revenue from Contracts with Customers." New authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" amended prior guidance to require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. The Company's revenue is comprised of interest income on financial assets, which is excluded from the scope of this new guidance, and non-interest income. This new guidance changes how certain recurring revenue streams are recognized within lease financing revenue and insignificant components of non-interest income. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

ASC Topic 825 "Financial Instruments." New authoritative accounting guidance under ASC Topic 825 "Financial Instruments" amended prior guidance to require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The new guidance simplifies the impairment assessment of equity investments without readily determinable fair values, requires public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from changes in the instrument-specific credit risk when the entity has selected the fair value option for financial instruments and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

ASC Topic 405 "Liabilities-Extinguishment of Liabilities." New authoritative accounting guidance under ASC Topic 405, "Liabilities-Extinguishment of Liabilities" amended prior guidance to clarify that liabilities related to the sale of prepaid store-value products within the scope of this guidance are financial liabilities and that breakage for those liabilities are to be accounted for consistent with the breakage guidance in ASC Topic 606 "Revenue from Contracts with Customers." The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 842 "Leases." New authoritative accounting guidance under ASC Topic 842 "Leases" amended prior guidance to require lessees to recognize the assets and liabilities arising from all leases on the balance sheet. The new authoritative guidance defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In addition, the qualifications for a sale and leaseback transaction have been amended. The new authoritative guidance also requires qualitative and quantitative disclosures bylessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The new authoritative guidance will be effective for reporting periods after January 1, 2019. In July 2018, the Financial Accounting Standards Board issued new authoritative guidance to provide an additional transition method that allows entities to not apply this new guidance in the comparative periods presented in the financial statements and instead recognize a cumulative effect adjustment to the beginning retained earnings at the date of application. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition. The Company expects an increase in assets and liabilities as a result of recording additional lease contracts where the Company is lessee.

ASC Topic 815 "Derivatives and Hedging." New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new authoritative guidance expands and refines hedge accounting for both nonfinancial and financial risk components. The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 718 "Compensation - Stock Compensation." New authoritative accounting guidance under ASC Topic 718 "Compensation - Stock Compensation" amends prior guidance by clarifying which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 326 "Financial Instruments - Credit Losses." New authoritative accounting guidance under ASC Topic 326 "Financial Instruments - Credit Losses" amended the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The new authoritative guidance also requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected (net of the allowance for credit losses). In addition, the credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses rather than a write-down. The new authoritative guidance will be effective for reporting periods after January 1, 2020. The Company is evaluating the new guidance and expects it to have an impact on the Company's statements of operations and financial condition, the significance of which is not yet known nor can it be reasonably estimated currently. Due to the significant differences in the new authoritative guidance from existing GAAP, the implementation of this guidance may result in material changes in our accounting for credit losses on the financial instruments and will be impacted by the Company's loan and securities portfolios' composition, attributes, and quality in addition to the prevailing economic conditions and forecasts at the time of adoption. As part of the Company's evaluation process, it has established a steering committee and working group, including individuals from various functional areas, to assess processes and related controls, portfolio segmentation, model development, system requirements, and needed resources.

ASC Topic 230 "Statement of Cash Flows." New authoritative accounting guidance under ASC Topic 230 "Statement of Cash Flows" addresses eight specific cash flow classification issues with the objective of reducing the existing diversity in practice. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

New authoritative accounting guidance under ASC Topic 230 "Statement of Cash Flows" amends prior guidance to require an entity to include amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 740 "Income Taxes." New authoritative accounting guidance under ASC Topic 740 "Income Taxes" amends prior guidance to require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 350 "Intangibles-Goodwill and Other." New authoritative accounting guidance under ASC Topic 350 "Intangibles-Goodwill and Other" amends prior guidance to eliminate Step 2 from the goodwill impairment test and require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new authoritative guidance will be effective for reporting periods after January 1, 2020. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition.

ASC Topic 610 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets." New authoritative accounting guidance under ASC Topic 610 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" amends prior guidance to clarify the scope of Subtopic 610-20 by defining in substance nonfinancial assets and to add guidance for partial sales of nonfinancial assets. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 310 "Receivables - Nonrefundable Fees and Other Costs." New authoritative accounting guidance under ASC Topic 310 "Receivables - Nonrefundable Fees and Other Costs" amends prior guidance by shortening the amortization period for certain callable debt securities held at a premium requiring the premium to be amortized to the earliest call date. The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition.

ASC Topic 220 "Income Statement - Reporting Comprehensive Income." New authoritative accounting guidance under ASC Topic 220 "Income Statement - Reporting Comprehensive Income" allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from enactment of H.R. 1, originally known as the "Tax Cuts and Jobs Act." The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. The Company early adopted the new guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

Accounting changes. The Company adopted the new authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" on January 1, 2018 using the modified retrospective transition method for contracts that were not completed at the date of initial application. The Company recognized a cumulative effect reduction to the beginning retained earnings totaling $683 thousand. This amount relates to lease financing revenue where the Company's performance obligation is over time. Previously, such revenue was recognized immediately. See "Lease financing revenue, net" below.

The new authoritative accounting guidance under ASC Topic 606 requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The non-interest revenue streams that are considered to be in the scope of this new guidance are discussed below.

Lease financing revenue, net. Fees from the sale of third-party equipment maintenance contracts are included within lease financing revenue, net. The Company sells third-party equipment maintenance contracts and provides customers with an asset and maintenance contract management tool over the life of the maintenance contract. Since the Company provides support for the asset and maintenance contract management tool, the Company's performance obligation is satisfied over the life of the maintenance contract, and the fees are recognized monthly over the life of the maintenance contract. Payment is typically received at the time of sale of the maintenance contract.

Treasury management fees and consumer and other deposit service fees. Deposit related fees (account analysis fees, monthly service fees, and other related fees) are included within treasury management fees and consumer and other deposit service fees. The Company's performance obligation is ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly.

Wealth management fees. Wealth management fees include revenue from the management and advisement of client assets and trust administration. The Company's performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually.

Card fees. Card fees include debit and credit card interchange fees and ATM fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. The Company's performance obligation for ATM fees is satisfied when services are provided, and the fees are recognized at that time. Payment is typically received immediately or in the following month.

Capital markets and international banking fees. Capital markets and international banking fees include M&A advisory and syndication fees. The Company's performance obligation is generally satisfied over time, and the fees are recognized monthly. For M&A advisory fees, a portion of the payment is received at the beginning of the engagement with the remainder once the transaction is completed. For syndication fees, payment is received annually.

The Company also adopted the new authoritative accounting guidance under ASC Topic 825 "Financial Instruments" and ASC Topic 220 "Income Statement - Reporting Comprehensive Income" on January 1, 2018. The Company recognized a cumulative effect increase to the beginning retained earnings and accumulated other comprehensive income totaling $385 thousand under ASC Topic 825 representing the fair value adjustment to equity securities at the date of initial application. In addition, the Company reclassified $729 thousand from accumulated other comprehensive loss to retained earnings for the stranded tax effects resulting from enactment of the Tax Cuts and Jobs Act at the date of initial application of the new guidance under ASC Topic 220.

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company's common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (amounts in thousands, except share and per share data).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Distributed earnings allocated to common stock	$	20,472	$	17,829	$	40,755	$	33,960
Undistributed earnings	18,061		26,637		54,535		65,043
Net income	38,533		44,466		95,290		99,003
Less: preferred stock dividends	3,000		2,002		6,100		4,005
Plus: return from preferred stockholders due to redemption (1)	—		—		15,280		—
Net income available to common stockholders for basic earnings per common share	35,533		42,464		104,470		94,998
Plus: preferred stock dividends on convertible preferred stock	—		2		—		5
Less: earnings allocated to participating securities	1		1		3		2
Earnings allocated to common stockholders for diluted earnings per common share	$	35,532	$	42,465	$	104,467	$	95,001
Weighted average shares outstanding for basic earnings per common share	84,253,966		83,842,963		84,160,344		83,753,195
Dilutive effect of:
Stock options	553,999		554,314		530,892		595,415
Restricted shares and units	443,845		363,003		383,390		417,433
Convertible preferred stock	—		7,134		—		7,228
Total dilutive effect of equity awards and convertible preferred stock	997,844		924,451		914,282		1,020,076
Weighted average shares outstanding for diluted earnings per common share	85,251,810		84,767,414		85,074,626		84,773,271
Basic earnings per common share	$	0.42	$	0.51	$	1.24	$	1.13
Diluted earnings per common share	0.42		0.50		1.23		1.12

⁽¹⁾  Represents the excess carrying amount over the redemption price of the 8% Series A non-cumulative perpetual preferred stock redeemed in the first quarter of 2018.

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Investment Securities

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Amortized cost and fair value of investment securities, excluding marketable equity securities and non-marketable FHLB and FRB stock, were as follows as of the dates indicated (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2018
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,098	$	—	$	(72	)	$	5,026
States and political subdivisions	338,927		11,686		(552		)	350,061
Residential mortgage-backed securities	1,225,978		1,594		(21,993		)	1,205,579
Commercial mortgage-backed securities	63,527		84		(187		)	63,424
Corporate bonds	23,179		—		(9		)	23,170
Total Available for Sale	1,656,709		13,364		(22,813		)	1,647,260
Held to Maturity
States and political subdivisions	884,576		18,512		(1,745		)	901,343
Residential mortgage-backed securities	38,460		400		—			38,860
Total Held to Maturity	923,036		18,912		(1,745		)	940,203
Total	$	2,579,745	$	32,276	$	(24,558	)	$	2,587,463
December 31, 2017
Available for Sale
U.S. Government sponsored agencies and enterprises	$	23,013	$	3	$	(9	)	$	23,007
States and political subdivisions	363,813		15,998		(486		)	379,325
Residential mortgage-backed securities	861,594		3,035		(11,930		)	852,699
Commercial mortgage-backed securities	71,554		612		(131		)	72,035
Corporate bonds	70,155		84		(42		)	70,197
Equity securities (1)	11,236		—		(173		)	11,063
Total Available for Sale	1,401,365		19,732		(12,771		)	1,408,326
Held to Maturity
States and political subdivisions	878,400		32,559		(447		)	910,512
Residential mortgage-backed securities	80,682		1,261		—			81,943
Total Held to Maturity	959,082		33,820		(447		)	992,455
Total	$	2,360,447	$	53,552	$	(13,218	)	$	2,400,781

⁽¹⁾  Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new guidance under ASC Topic 825 "Financial Instruments" on January 1, 2018.

The increase in investment securities was due to investments in residential mortgage-backed securities in the first quarter of 2018. The Company has no direct exposure to the State of Illinois in its investment securities portfolio, but approximately 20% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of June 30, 2018. Approximately 95% of the state and political subdivisions securities were general obligation issues, and 27% were insured or had another form of credit enhancement as of June 30, 2018.

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at June 30, 2018 were as follows (in thousands):

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,026	$	(72	)	$	—	$	—		$	5,026	$	(72	)
States and political subdivisions	13,492		(57		)	18,587		(495		)	32,079		(552		)
Residential mortgage-backed securities	713,248		(7,402		)	398,203		(14,591		)	1,111,451		(21,993		)
Commercial mortgage-backed securities	31,993		(127		)	11,263		(60		)	43,256		(187		)
Corporate bonds	23,170		(9		)	—		—			23,170		(9		)
Total Available for Sale	786,929		(7,667		)	428,053		(15,146		)	1,214,982		(22,813		)
Held to Maturity
States and political subdivisions	131,461		(1,191		)	14,546		(554		)	146,007		(1,745		)
Total	$	918,390	$	(8,858	)	$	442,599	$	(15,700	)	$	1,360,989	$	(24,558	)

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at December 31, 2017 were as follows (in thousands):

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,111	$	(9	)	$	—	$	—		$	5,111	$	(9	)
States and political subdivisions	9,016		(29		)	18,754		(457		)	27,770		(486		)
Residential mortgage-backed securities	256,769		(1,853		)	407,224		(10,077		)	663,993		(11,930		)
Commercial mortgage-backed securities	19,483		(20		)	14,583		(111		)	34,066		(131		)
Corporate bonds	7,052		(8		)	9,963		(34		)	17,015		(42		)
Equity securities	11,063		(173		)	—		—			11,063		(173		)
Total Available for Sale	308,494		(2,092		)	450,524		(10,679		)	759,018		(12,771		)
Held to Maturity
States and political subdivisions	45,499		(257		)	12,561		(190		)	58,060		(447		)
Total	$	353,993	$	(2,349	)	$	463,085	$	(10,869	)	$	817,078	$	(13,218	)

The total number of security positions in the investment portfolio in an unrealized loss position at June 30, 2018 was 626 compared to 471 at December 31, 2017. This increase in total number of security positions in a continuous unrealized loss position from December 31, 2017 to June 30, 2018 was mainly attributable to the mortgage-backed securities in the investment securities portfolio.

Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) whether the Company is more likely than not to sell the security before recovery of its cost basis.

As of June 30, 2018, management does not have the intent to sell any of the securities in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2018, management believes the impairments detailed in the table above are temporary.

Changes in market interest rates can significantly influence the fair value of securities, and the fair value of our municipal securities portfolio would decline substantially if interest rates increase materially.

Net gains (losses) recognized on investment securities were as follows (in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Realized gains	$	62		$	137	$	150		$	374
Realized losses	(148		)	—		(410		)	(6		)
Net (losses) gains	$	(86	)	$	137	$	(260	)	$	368

The amortized cost and fair value of investment securities as of June 30, 2018 by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.

	Amortized		Fair
(In thousands)	Cost		Value
Available for sale:
Due in one year or less	$	61,670	$	62,235
Due after one year through five years	124,424		128,078
Due after five years through ten years	40,076		40,532
Due after ten years	141,034		147,412
Residential and commercial mortgage-backed securities	1,289,505		1,269,003
	1,656,709		1,647,260
Held to maturity:
Due in one year or less	42,695		42,916
Due after one year through five years	175,308		180,895
Due after five years through ten years	224,040		229,732
Due after ten years	442,533		447,800
Residential mortgage-backed securities	38,460		38,860
	923,036		940,203
Total	$	2,579,745	$	2,587,463

Investment securities with a carrying amount of $738.6 million at June 30, 2018 and $726.1 million at December 31, 2017 were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $606.0 million and $625.2 million were required to be pledged at June 30, 2018 and December 31, 2017, respectively.

Investment securities held to maturity with a carrying amount of $2.6 million were transferred to the available for sale portfolio and subsequently sold during the first quarter of 2018. These investment securities were obligations of states and political subdivisions that were downgraded and no longer met our credit criteria.

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Loans

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Loans

Loans

Loans consist of the following at (in thousands):

	June 30, 2018		December 31, 2017
Commercial loans	$	4,816,545	$	4,786,180
Commercial loans collateralized by assignment of lease payments	2,100,460		2,113,135
Commercial real estate	3,929,327		4,147,529
Residential real estate	1,352,625		1,432,458
Construction real estate	495,805		406,849
Indirect vehicle	749,983		667,928
Home equity	192,785		219,098
Other consumer loans	81,714		73,141
Total loans, excluding purchased credit-impaired loans	13,719,244		13,846,318
Purchased credit-impaired loans	101,001		119,744
Total loans	$	13,820,245	$	13,966,062

Loans are made to individuals as well as commercial and tax exempt entities. Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Except for commercial loans collateralized by assignment of lease payments, asset-based loans, residential real estate loans, and indirect vehicle loans, credit risk tends to be geographically concentrated in that a majority of the loan customers are located in Illinois.

The Company's extension of credit is governed by its Credit Risk Policy, which was established to control the quality of the Company's loans. This policy is reviewed and approved by the Enterprise Risk Committee of the Company's Board of Directors on an annual basis.

Commercial Loans. Commercial credit is extended mostly to middle market customers. Such credits are typically comprised of working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a significant amount by the businesses' principal owners. Commercial loans are made based primarily on the historical cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not perform as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. Asset-based loans, also included in commercial loans, are made to businesses with the primary source of repayment derived from payments on the related assets securing the loan. Collateral for these loans may include accounts receivable, inventory and equipment, and is monitored regularly to ensure ongoing sufficiency of collateral coverage and quality. The primary risk for these loans is a significant decline in collateral values due to general market conditions. Loan terms that mitigate these risks include typical industry amortization schedules, percentage of collateral advances, maintenance of cash collateral accounts and regular asset monitoring. Because of the national scope of our asset-based lending, the risk of these loans is also diversified by geography.

Commercial Loans Collateralized by Assignment of Lease Payments ("Lease Loans"). The Company makes lease loans to lessors where the underlying leases are with both investment grade and non-investment grade companies. Investment grade lessees are companies rated in one of the four highest categories by Moody's Investor Services. Whether or not companies fall into this category, each lease loan is considered on its individual merit based on the financial wherewithal of the lessee using financial information available at the time of underwriting. In addition, leases that transfer substantially all of the benefits and risk related to the equipment ownership are classified as direct finance leases and are included in lease loans.

Commercial Real Estate Loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as property income based loans and the repayment of these loans is largely dependent on the successful operation of the property, which also serves as collateral for the loan. In addition, $1.2 billion of commercial real estate loans at June 30, 2018 were secured by owner-occupied properties where the primary source of repayment is the cash flow from the ongoing operations and activities conducted by the owner of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.

Construction Real Estate Loans. The Company defines construction loans as loans where the loan proceeds are monitored by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, these loans are subject to other industry specific policy guidelines outlined in the Company's Credit Risk Policy.

Consumer Related Loans. The Company originates direct and indirect consumer loans, including residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans (motorcycle, marine, recreational, and powersports vehicles). Each loan type is underwritten based upon several factors including debt to income, type of collateral and loan to collateral value, credit history, and the Company's relationship with the borrower. Indirect loan and credit card underwriting involves the use of risk-based pricing in the underwriting process.

Purchased credit-impaired loans. Purchased credit-impaired loans are accounted for under ASC Topic 310-30, which include purchased credit-impaired loans acquired through business combinations, FDIC-assisted transactions and re-purchase transactions with the Government National Mortgage Association ("GNMA"). The loans re-purchased from GNMA were originally sold by the Company with servicing retained and subsequently became delinquent. These loans are also insured by the Federal Housing Administration (commonly referred to as "FHA") or the U.S. Department of Veterans Affairs (commonly referred to as "VA") where the Company would be able to recover the principal balance of these loans. All re-purchases from GNMA are at the Company's discretion.

Pledged loans. A collateral pledge agreement exists whereby at all times, the Company must keep on hand, free of all other pledges, liens, and encumbrances, loans with unpaid principal balances aggregating no less than 160% for qualifying first mortgage loans, 170% for home equity loans, 161% for qualifying commercial real estate loans and 105% for loans held for sale, of the outstanding advances from the Federal Home Loan Bank.  As of June 30, 2018 and December 31, 2017, the Company had $4.3 billion and $4.7 billion, respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $3.2 billion and $3.1 billion were required to be pledged at June 30, 2018 and December 31, 2017, respectively.

The Company also has a collateral pledge agreement with the Federal Reserve Bank. As of June 30, 2018 and December 31, 2017, the Company had $858.9 million and $902.2 million, respectively, of loans pledged as collateral at the Federal Reserve Bank for the discount window as a backup liquidity funding source.

The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of June 30, 2018 and December 31, 2017 (in thousands):

	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total Past Due		Total
June 30, 2018
Commercial	$	4,808,606	$	116	$	217	$	7,606	$	7,939	$	4,816,545
Commercial collateralized by assignment of lease payments	2,069,443		16,560		10,769		3,688		31,017		2,100,460
Commercial real estate:
Health care	694,863		—		—		—		—		694,863
Industrial	857,560		764		—		3,424		4,188		861,748
Multifamily	549,083		529		—		—		529		549,612
Retail	489,135		—		—		835		835		489,970
Office	430,984		—		—		228		228		431,212
Other	900,604		552		86		680		1,318		901,922
Residential real estate	1,341,504		617		1,687		8,817		11,121		1,352,625
Construction real estate	495,805		—		—		—		—		495,805
Indirect vehicle	744,297		3,947		1,131		608		5,686		749,983
Home equity	186,479		1,187		794		4,325		6,306		192,785
Other consumer	81,541		91		43		39		173		81,714
Total loans, excluding purchased credit-impaired loans	13,649,904		24,363		14,727		30,250		69,340		13,719,244
Purchased credit-impaired loans	60,429		4,685		5,124		30,763		40,572		101,001
Total loans	$	13,710,333	$	29,048	$	19,851	$	61,013	$	109,912	$	13,820,245
Non-performing loan aging	$	30,509	$	1,103	$	6,663	$	30,250	$	38,016	$	68,525
December 31, 2017
Commercial	$	4,769,244	$	1,702	$	6,926	$	8,308	$	16,936	$	4,786,180
Commercial collateralized by assignment of lease payments	2,099,246		11,320		1,878		691		13,889		2,113,135
Commercial real estate:
Health care	710,722		—		—		—		—		710,722
Industrial	908,394		—		—		755		755		909,149
Multifamily	601,844		688		—		732		1,420		603,264
Retail	503,224		—		—		474		474		503,698
Office	453,960		—		956		1,454		2,410		456,370
Other	956,181		7,035		76		1,034		8,145		964,326
Residential real estate	1,410,473		12,359		1,907		7,719		21,985		1,432,458
Construction real estate	404,595		2,254		—		—		2,254		406,849
Indirect vehicle	661,028		4,905		1,083		912		6,900		667,928
Home equity	210,831		3,161		1,073		4,033		8,267		219,098
Other consumer	72,846		202		36		57		295		73,141
Total loans, excluding purchased credit-impaired loans	13,762,588		43,626		13,935		26,169		83,730		13,846,318
Purchased credit-impaired loans	63,937		8,749		3,997		43,061		55,807		119,744
Total loans	$	13,826,525	$	52,375	$	17,932	$	69,230	$	139,537	$	13,966,062
Non-performing loan aging	$	36,879	$	8,799	$	4,961	$	26,169	$	39,929	$	76,808

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing by class of loans, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018				December 31, 2017
			Loans past due				Loans past due
	Non-accrual		90 days or more and still accruing		Non-accrual		90 days or more and still accruing
Commercial	$	10,727	$	—	$	14,001	$	3,500
Commercial collateralized by assignment of lease payments	5,373		3,688		490		531
Commercial real estate:
Health care	—		—		—		—
Industrial	3,485		—		8,807		—
Multifamily	635		—		860		—
Office	557		—		2,772		—
Retail	835		—		590		—
Other	5,813		75		8,016		190
Residential real estate	19,103		201		18,374		1,210
Construction real estate	—		—		—		—
Indirect vehicle	3,444		7		3,019		81
Home equity	14,541		—		14,305		—
Other consumer	2		39		4		58
Total	$	64,515	$	4,010	$	71,238	$	5,570

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company's risk rating system, the Company classifies potential problem and problem loans as “Special Mention,” “Substandard,” and “Doubtful.” Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management's close attention are deemed to be Special Mention. Loans rated but not adversely classified are deemed to be Pass. Risk ratings are updated any time the situation warrants and at least annually.

Loans not rated are included in groups of homogeneous loans with similar risk and loss characteristics and are not included in the table below. The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2018
Commercial	$	4,518,183	$	169,458	$	128,904	$	—	$	4,816,545
Commercial collateralized by assignment of lease payments	2,083,287		6,114		11,059		—		2,100,460
Commercial real estate:
Health care	610,505		7,149		77,209		—		694,863
Industrial	833,104		19,720		8,924		—		861,748
Multifamily	546,488		1,345		1,779		—		549,612
Retail	465,899		21,226		2,845		—		489,970
Office	422,682		4,735		3,795		—		431,212
Other	854,186		16,600		31,136		—		901,922
Construction real estate	490,270		—		5,535		—		495,805
Total	$	10,824,604	$	246,347	$	271,186	$	—	$	11,342,137
December 31, 2017
Commercial	$	4,535,111	$	147,232	$	103,837	$	—	$	4,786,180
Commercial collateralized by assignment of lease payments	2,095,668		7,527		9,940		—		2,113,135
Commercial real estate:
Health care	640,751		33,672		36,299		—		710,722
Industrial	885,524		12,411		11,214		—		909,149
Multifamily	595,818		146		7,300		—		603,264
Retail	492,830		8,326		2,542		—		503,698
Office	452,902		696		2,772		—		456,370
Other	891,703		37,682		34,941		—		964,326
Construction real estate	406,849		—		—		—		406,849
Total	$	10,997,156	$	247,692	$	208,845	$	—	$	11,453,693

Approximately $27.5 million and $35.6 million of the substandard loans were non-performing as of June 30, 2018 and December 31, 2017, respectively.

For residential real estate, home equity, indirect vehicle and other consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	Performing		Non-performing		Total
June 30, 2018
Residential real estate	$	1,333,321	$	19,304	$	1,352,625
Indirect vehicle	746,532		3,451		749,983
Home equity	178,244		14,541		192,785
Other consumer	81,673		41		81,714
Total	$	2,339,770	$	37,337	$	2,377,107
December 31, 2017
Residential real estate	$	1,412,874	$	19,584	$	1,432,458
Indirect vehicle	664,828		3,100		667,928
Home equity	204,793		14,305		219,098
Other consumer	73,079		62		73,141
Total	$	2,355,574	$	37,051	$	2,392,625

The recorded investment in residential mortgage loans secured by residential real estate properties (including purchased credit-impaired loans) for which foreclosure proceedings are in process totaled $54.7 million and $43.6 million at June 30, 2018 and December 31, 2017, respectively.

The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018
									Three Months Ended				Six Months Ended
	Unpaid Principal Balance		Recorded Investment		Partial Charge-offs		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	5,862	$	5,321	$	541	$	—	$	6,473	$	—	$	6,768	$	—
Commercial collateralized by assignment of lease payments	—		—		—		—		—		—		—		—
Commercial real estate:
Health care	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		1,653		52
Residential real estate	4,089		4,051		38		—		4,142		—		3,770		—
Construction real estate	—		—		—		—		—		—		—		—
Indirect vehicle	647		334		313		—		644		21		562		28
Home equity	79		79		—		—		—		—		—		—
Other consumer	—		—		—		—		—		—		—		—
With an allowance recorded:
Commercial	4,795		4,795		—		1,421		4,917		78		4,921		97
Commercial collateralized by assignment of lease payments	5,078		5,078		—		3,144		331		—		166		—
Commercial real estate:
Health care	—		—		—		—		—		—		539		28
Industrial	3,423		3,423		—		1,420		3,493		4		3,207		8
Multifamily	—		—		—		—		—		—		—		—
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Other	6,487		6,487		—		559		4,149		124		2,086		124
Residential real estate	20,461		18,603		1,858		1,729		18,605		31		18,956		32
Construction real estate	—		—		—		—		—		—		—		—
Indirect vehicle	—		—		—		—		—		—		—		—
Home equity	31,383		28,767		2,616		1,923		28,933		20		29,305		30
Other consumer	—		—		—		—		—		—		—		—
Total	$	82,304	$	76,938	$	5,366	$	10,196	$	71,687	$	278	$	71,933	$	399

	December 31, 2017
									Year Ended
	Unpaid Principal Balance		Recorded Investment		Partial Charge-offs		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	8,312	$	7,771	$	541	$	—	$	5,595	$	95
Commercial collateralized by assignment of lease payments	—		—		—		—		301		—
Commercial real estate:
Health care	—		—		—		—		—		—
Industrial	—		—		—		—		1,260		8
Multifamily	—		—		—		—		1,261		29
Retail	—		—		—		—		814		27
Office	527		527		—		—		1,426		18
Other	10,597		10,597		—		—		2,312		128
Residential real estate	1,950		1,912		38		—		483		—
Construction real estate	—		—		—		—		—		—
Indirect vehicle	408		202		206		—		411		26
Home equity	81		81		—		—		376		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	7,418		7,418		—		2,315		7,668		277
Commercial collateralized by assignment of lease payments	—		—		—		—		126		14
Commercial real estate:
Health care	—		—		—		—		—		—
Industrial	8,339		8,317		22		2,669		3,215		171
Multifamily	568		568		—		320		426		—
Retail	—		—		—		—		1,345		28
Office	2,293		2,277		16		752		636		4
Other	—		—		—		—		29		—
Residential real estate	21,380		19,014		2,366		2,158		17,616		25
Construction real estate	—		—		—		—		—		—
Indirect vehicle	—		—		—		—		—		—
Home equity	30,762		28,286		2,476		2,200		27,982		54
Other consumer	—		—		—		—		—		—
Total	$	92,635	$	86,970	$	5,665	$	10,414	$	73,282	$	904

Impaired loans included accruing restructured loans of $25.7 million and $28.6 million that have been modified and are performing in accordance with those modified terms as of June 30, 2018 and December 31, 2017, respectively.  In addition, impaired loans included $26.2 million and $30.8 million of non-performing restructured loans as of June 30, 2018 and December 31, 2017, respectively.

Loans may be restructured in an effort to maximize collections from financially distressed borrowers. We use various restructuring techniques, including, but not limited to, deferring past due interest or principal, implementing an A/B note structure, redeeming past due taxes, reducing interest rates, extending maturities and modifying amortization schedules. Residential real estate loans are restructured in an effort to minimize losses while allowing borrowers to remain in their primary residences when possible.

A loan classified as a troubled debt restructuring will no longer be included in the troubled debt restructuring disclosures in the years after the restructuring if the loan performs in accordance with the terms specified by the restructuring agreement and the interest rate specified in the restructuring agreement represents a market rate at the time of modification. The specified interest rate is considered a market rate when the interest rate is equal to or greater than the rate the Company is willing to accept at the time of restructuring for a new loan with comparable risk. If there are concerns that the borrower will not be able to meet the modified terms of the loan, the loan will continue to be included in the troubled debt restructuring disclosures.

Impairment analyses on commercial-related loans classified as troubled debt restructurings are performed in conjunction with the normal allowance for loan and lease losses process. Consumer loans classified as troubled debt restructurings are aggregated in two pools that share common risk characteristics, home equity and residential real estate loans, with impairment measured on a quarterly basis based on the present value of expected future cash flows discounted at the loan's effective interest rate.

The following table presents loans that were restructured during the three months ended June 30, 2018 (dollars in thousands):

	June 30, 2018
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Total	—	$	—	$	—	$	—
Non-Performing:
Residential real estate	8	$	935	$	935	$	152
Indirect vehicle	9	54		54		36
Home equity	2	76		76		5
Total	19	$	1,065	$	1,065	$	193

The following table presents loans that were restructured during the six months endedJune 30, 2018 (dollars in thousands):

	June 30, 2018
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Residential real estate	1	$	88	$	88	$	9
Total	1	$	88	$	88	$	9
Non-Performing:
Residential real estate	16	$	2,441	$	2,441	$	938
Indirect vehicle	20	120		120		38
Home equity	5	210		210		14
Total	41	$	2,771	$	2,771	$	990

The following table presents loans that were restructured during the three months ended June 30, 2017 (dollars in thousands):

	June 30, 2017
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Commercial	5	$	2,491	$	2,491	$	373
Commercial real estate:
Industrial	2	2,787		2,787		—
Office	1	549		549		—
Other	1	147		147		—
Residential real estate	3	$	493	$	493	$	86
Home equity	2	46		46		3
Total	14	$	6,513	$	6,513	$	462
Non-Performing:
Commercial	2	$	676	$	676	$	—
Commercial real estate:
Multifamily	3	290		290		—
Retail	1	906		906		—
Residential real estate	8	1,122		1,122		289
Indirect vehicle	8	77		77		25
Home equity	2	593		593		57
Total	24	$	3,664	$	3,664	$	371

The following table presents loans that were restructured during the six months endedJune 30, 2017 (dollars in thousands):

	June 30, 2017
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Commercial	5	$	2,491	$	2,491	$	373
Commercial real estate
Industrial	2	2,787		2,787		—
Office	1	549		549		—
Other	1	147		147		—
Residential real estate	6	902		902		135
Home equity	3	78		78		6
Total	18	$	6,954	$	6,954	$	514
Non-Performing:
Commercial	2	$	676	$	676	$	—
Commercial real estate:
Multifamily	3	290		290		—
Retail	1	906		906		—
Residential real estate	17	2,380		2,380		443
Indirect vehicle	11	97		97		29
Home equity	3	593		593		57
Total	37	$	4,942	$	4,942	$	529

Of the troubled debt restructurings entered into during the past twelve months, none subsequently defaulted during the six months endedJune 30, 2018.  Performing troubled debt restructurings are considered to have defaulted when they become 90 days or more past due post-restructuring or are placed on non-accrual status.

The following table presents the troubled debt restructurings activity during the six months endedJune 30, 2018 (in thousands):

	Performing			Non-performing
Beginning balance	$	28,554		$	30,836
Additions	88			2,771
Charge-offs	—			(130		)
Principal payments, net	(4,774		)	(5,364		)
Removals	(77		)	(8		)
Transfer to other real estate owned	—			—
Transfers in	2,382			513
Transfers out	(513		)	(2,382		)
Ending balance	$	25,660		$	26,236

Loans removed from troubled debt restructuring status are those that were restructured in a previous calendar year at a market rate of interest and have performed in compliance with the modified terms.

The following table presents the type of modification for loans that have been restructured during the six months endedJune 30, 2018 (in thousands):

	June 30, 2018
	Extended
	Maturity,				Delay in
	Amortization		Extended		Payments and/or
	and Reduction		Maturity and/or		Reduction of
	of Interest Rate		Amortization		Interest Rate		Total
Residential real estate	$	1,256	$	862	$	411	$	2,529
Indirect vehicle	—		—		120		120
Home equity	—		210		—		210
Total	$	1,256	$	1,072	$	531	$	2,859

The following table presents the activity in the allowance for credit losses, balance in allowance for credit losses and recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2018 and 2017 (in thousands):

	Commercial			Commercial collateralized by assignment of lease payments		Commercial real estate		Residential real estate			Construction real estate		Indirect vehicle		Home equity			Other consumer		Unfunded commitments		Total
June 30, 2018
Allowance for credit losses:
Three Months Ended
Beginning balance	$	45,551		$	12,993	$	65,798	$	6,376		$	19,803	$	4,350	$	4,346		$	2,495	$	1,678	$	163,390
Charge-offs	1,534			716		2,621		28			—		1,328		184			309		—		6,720
Recoveries	167			149		329		26			37		664		228			89		—		1,689
Provision	(3,866		)	669		1,885		(642		)	6,952		1,052		(248		)	307		110		6,219
Ending balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Six Months Ended
Beginning balance	$	46,267		$	13,007	$	63,429	$	7,012		$	15,501	$	4,728	$	5,296		$	2,470	$	1,698	$	159,408
Charge-offs	2,936			716		5,097		729			—		3,152		248			660		—		13,538
Recoveries	504			400		1,091		96			430		1,843		298			319		—		4,981
Provision	(3,517		)	404		5,968		(647		)	10,861		1,319		(1,204		)	453		90		13,727
Ending balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,421		$	3,144	$	1,979	$	1,729		$	—	$	—	$	1,923		$	—	$	616	$	10,812
Collectively evaluated for impairment	38,823			9,951		62,400		4,003			26,757		4,738		2,219			2,582		1,172		152,645
Acquired and accounted for under ASC 310-30 (1)	74			—		1,012		—			35		—		—			—		—		1,121
Total ending allowance balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Loans:
Individually evaluated for impairment	$	10,116		$	5,078	$	9,910	$	22,654		$	—	$	334	$	28,846		$	—	$	—	$	76,938
Collectively evaluated for impairment	4,806,429			2,095,382		3,919,417		1,329,971			495,805		749,649		163,939			81,714		—		13,642,306
Acquired and accounted for under ASC 310-30 (1)	10,459			—		24,286		51,485			3,641		—		9,855			1,275		—		101,001
Total ending loans balance	$	4,827,004		$	2,100,460	$	3,953,613	$	1,404,110		$	499,446	$	749,983	$	202,640		$	82,989	$	—	$	13,820,245

	Commercial			Commercial collateralized  by assignment of lease payments			Commercial real estate		Residential real estate		Construction real estate		Indirect vehicle		Home equity			Other consumer		Unfunded commitments			Total
June 30, 2017
Allowance for credit losses:
Three Months Ended
Beginning balance	$	40,690		$	12,143		$	58,220	$	8,131	$	14,859	$	3,624	$	5,312		$	1,191	$	2,328		$	146,498
Charge-offs	700			—			262		270		—		930		261			498		—			2,921
Recoveries	1,339			249			362		58		47		565		292			109		—			3,021
Provision	2,454			373			4,927		330		357		704		206			412		(64		)	9,699
Ending balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Six Months Ended
Beginning balance	$	44,661		$	12,238		$	51,807	$	5,971	$	14,758	$	3,421	$	5,469		$	1,041	$	2,476		$	141,842
Charge-offs	868			—			1,347		360		—		2,341		434			944		—			6,294
Recoveries	2,849			712			880		586		159		1,217		575			338		—			7,316
Provision	(2,859		)	(185		)	11,907		2,052		346		1,666		(61		)	779		(212		)	13,433
Ending balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,076		$	—		$	724	$	1,839	$	—	$	—	$	2,940		$	—	$	516		$	7,095
Collectively evaluated for impairment	42,619			12,765			62,115		6,410		15,227		3,963		2,609			1,214		1,748			148,670
Acquired and accounted for under ASC 310-30 (1)	88			—			408		—		36		—		—			—		—			532
Total ending allowance balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Loans:
Individually evaluated for impairment	$	11,167		$	1		$	13,820	$	16,956	$	—	$	144	$	29,019		$	—	$	—		$	71,107
Collectively evaluated for impairment	4,692,161			2,076,910			3,868,934		1,394,303		449,116		627,675		209,933			74,925		—			13,393,957
Acquired and accounted for under ASC 310-30 (1)	17,797			—			38,859		73,872		5,201		—		11,558			1,790		—			149,077
Total ending loans balance	$	4,721,125		$	2,076,911		$	3,921,613	$	1,485,131	$	454,317	$	627,819	$	250,510		$	76,715	$	—		$	13,614,141

⁽¹⁾  Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.”

Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration.  

• Pass rated loans (typically performing loans) are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.

• Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC Topic 310-30 if they display at least some level of credit deterioration since origination.

• Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.

For pass rated loans (non-purchased credit-impaired loans), the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans.

In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans, the loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows.

Substantially all of the loans acquired in FDIC-assisted transactions displayed at least some level of credit deterioration and as such are included as non-impaired and impaired loans as described immediately above.

During the six months endedJune 30, 2018, there was a negative provision for credit losses of $413 thousand and net recoveries of $357 thousand in relation to purchased credit-impaired loans. There was $1.1 million and $1.2 million in allowance for loan and lease losses related to these purchased credit-impaired loans at June 30, 2018 and December 31, 2017, respectively.  The provision for credit losses and accompanying charge-offs are included in the table above.

Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the three and six months endedJune 30, 2018 and 2017 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Balance at beginning of period	$	10,267		$	14,911		$	12,069		$	16,050
Purchases	—			—			—			43
Accretion	(2,223		)	(2,831		)	(4,634		)	(5,019		)
Other (1)	197			606			806			1,612
Balance at end of period	$	8,241		$	12,686		$	8,241		$	12,686

⁽¹⁾  Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC 310-30.

In our FDIC-assisted transactions, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. Due to the loss-share agreements with the FDIC, we recorded a receivable (FDIC indemnification asset) from the FDIC equal to the present value of the corresponding reimbursement percentages on the estimated losses embedded in the loan portfolio.

For other loans acquired through business combinations, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors.

The carrying amount of loans acquired through a business combination by loan pool type are as follows (in thousands):

June 30, 2018	Purchased Credit-Impaired Loans		Purchased Non-Credit-Impaired Loans		Total
Covered loans (1):
Consumer related	$	14,005	$	—	$	14,005
Non-covered loans:
Commercial loans	10,459		176,660		187,119
Commercial loans collateralized by assignment of lease payments	—		15,406		15,406
Commercial real estate	24,285		601,356		625,641
Construction real estate	3,641		2,758		6,399
Consumer related	5,029		231,229		236,258
Total non-covered loans	43,414		1,027,409		1,070,823
Total acquired	$	57,419	$	1,027,409	$	1,084,828

⁽¹⁾  Covered loans refer to loans covered under loss-sharing agreements with the FDIC. The remaining loss-share agreements expire between 2019 and 2020.

In addition to loans acquired through a business combination noted in the table above, consumer related purchased credit-impaired loans includes loans repurchased from GNMA of $43.6 million as of June 30, 2018.

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Goodwill and Intangibles

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

Goodwill and Intangibles

The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit and client relationship intangibles, consists of goodwill. Under ASC Topic 350, goodwill is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill to determine potential impairment annually, or more frequently if events and circumstances indicate that goodwill might be impaired, by comparing the carrying value of the reporting units with the fair value of the reporting units.

The Company's annual assessment date is as of December 31. Goodwill is tested for impairment at the reporting unit level. The Company has three reporting units: Banking, Leasing, and Mortgage Banking. The carrying amount of goodwill was $1.0 billion at June 30, 2018 and December 31, 2017. On April 12, 2018, the Company announced the discontinuation of its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area. As a result, the Company recorded an impairment loss in the amount of $3.6 million within the Mortgage Banking segment in the second quarter of 2018. No impairment losses were recognized during the six months endedJune 30, 2017.

The following table presents the carrying amount of goodwill by segment for the six months endedJune 30, 2018 (in thousands):

	Banking		Leasing		Mortgage Banking			Total
Balance at beginning of period	$	959,285	$	40,640	$	3,623		$	1,003,548
Impairment	—		—		(3,623		)	(3,623		)
Balance at end of period	$	959,285	$	40,640	$	—		$	999,925

The Company has other intangible assets consisting of core deposit and client relationship intangibles that had a remaining weighted average amortization period of approximately 12 years as of June 30, 2018.

The following table presents the changes during the six months endedJune 30, 2018 in the carrying amount of core deposit and client relationship intangibles, and the gross carrying amount, accumulated amortization, and net book value as of June 30, 2018 (in thousands):

	June 30, 2018
Balance at beginning of period	$	54,766
Amortization expense	(3,798		)
Balance at end of period	$	50,968
Gross carrying amount	$	112,820
Accumulated amortization	(61,852		)
Net book value	$	50,968

The following presents the estimated future amortization expense of other intangible assets (in thousands):

Year ending December 31,	Amount
2018	$	3,653
2019	5,674
2020	5,022
2021	4,790
2022	3,806
Thereafter	28,023
	$	50,968

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Deposits

6 Months Ended

Jun. 30, 2018

Banking and Thrift [Abstract]

Deposits

Deposits

The composition of deposits was as follows as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30,		December 31,
	2018		2017
Demand deposit accounts, non-interest bearing	$	6,347,208	$	6,381,512
NOW, money market, and interest bearing deposits	4,950,676		4,954,765
Savings accounts	1,181,078		1,167,810
Certificates of deposit, $250,000 or more	1,459,919		1,506,071
Other certificates of deposit	983,782		948,220
Total	$	14,922,663	$	14,958,378

Certificates of deposit of $250,000 or more included $1.1 billion of brokered deposits at June 30, 2018 and December 31, 2017.  Brokered deposits typically consist of smaller individual time certificates that have the same liquidity characteristics and yields consistent with time certificates of $250,000 or more.

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Short-Term Borrowings

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings were as follows as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	June 30, 2018				December 31, 2017
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
Customer repurchase agreements	0.55	%	$	244,462	0.27	%	$	232,789
Federal Home Loan Bank advances	2.13		400,000		1.31		625,000
Federal funds purchased	2.21		7,000		1.26		3,250
Line of credit	—		—		—		—
Total	1.53	%	$	651,462	1.03	%	$	861,039

Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date.  The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements.  All securities sold under agreements to repurchase are recorded on the face of the balance sheet. The Company pledges mortgage-backed securities as collateral for the repurchase agreements and may be required to provide additional collateral based on the fair value of those securities.

The Company had Federal Home Loan Bank ("FHLB") advances with a maturity date less than one year of $400.0 million at June 30, 2018 and $625.0 million at December 31, 2017. At June 30, 2018, the interest rate on the advances outstanding on that date had rates ranging from 1.35% to 2.35% with maturities from September 2018 to June 2019. The Company has loans pledged as collateral on these Federal Home Loan Bank advances. See Note 5. Loans.

On December 18, 2015, the Company entered into a $35.0 million unsecured line of credit at the holding company level with a correspondent bank. Interest was payable at a rate of one month LIBOR + 1.75%. No borrowings under the line of credit were outstanding as of June 30, 2018 and December 31, 2017. The line of credit matured on June 30, 2018.

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Long-Term Borrowings

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-Term Borrowings

Long-Term Borrowings

Long-term borrowings were as follows as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	June 30, 2018				December 31, 2017
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
Federal Home Loan Bank advances	2.52	%	$	478,096	1.73	%	$	231,317
Notes payable	4.57		79,196		4.14		90,807
Subordinated notes, net of issuance costs (1)	4.00		173,000		4.00		173,034
Term note	—		—		3.31		10,000
Total	3.09	%	$	730,292	2.97	%	$	505,158

⁽¹⁾  The amount decreased from December 31, 2017 as a result of an increase in issuance costs due to adjustments for actual costs.

The Company had Federal Home Loan Bank advances with remaining contractual maturities greater than one year of $478.1 million at June 30, 2018 and $231.3 million at December 31, 2017. As of June 30, 2018, the advances had interest rates ranging from 2.31% to 5.87% and maturities ranging from September 2019 to April 2035. The Company has loans pledged as collateral on these Federal Home Loan Bank advances. See Note 5. Loans.

The Company had notes payable to banks totaling $75.5 million and $76.3 million at June 30, 2018 and December 31, 2017, respectively, which as of June 30, 2018, were accruing interest at rates ranging from 2.25% to 7.25%, with a weighted average rate of 4.57%.  Lease investments includes equipment with an amortized cost of $92.8 million and $91.9 million at June 30, 2018 and December 31, 2017, respectively, that is pledged as collateral on these notes. The Company also had $3.7 million and $14.5 million at June 30, 2018 and December 31, 2017, respectively, in other secured borrowings (included in the notes payable above) with a weighted average rate of 4.56% as of June 30, 2018.

On August 24, 2016, the Company assumed a $16.0 million unsecured term loan at the holding company level with a correspondent bank through the merger of American Chartered Bancorp, Inc. ("American Chartered") with and into the Company on that date. Interest was payable at a rate of one month LIBOR + 1.75%, and the loan was to mature on June 30, 2020. Principal payments of $1.0 million were due quarterly until maturity. As of June 30, 2018, nothing was outstanding on this loan as it was prepaid in full in the first quarter of 2018.

On November 16, 2017, MB Financial Bank issued $175.0 million in 4.00% fixed-to-floating subordinated notes that mature on December 1, 2027. The subordinated notes bear a fixed interest rate of 4.00% until December 1, 2022 and a variable interest rate of three month LIBOR + 1.873% thereafter until maturity. The subordinated notes are callable on a semi-annual basis beginning on December 1, 2022.

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Junior Subordinated Notes Issued to Capital Trusts

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Junior Subordinated Notes Issued to Capital Trusts

Junior Subordinated Notes Issued to Capital Trusts

The Company has established statutory trusts for the sole purpose of issuing trust preferred securities and related trust common securities.  The proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust.  Concurrently with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities.  The Company’s outstanding trust preferred securities qualify, and are treated by the Company, as Tier 2 regulatory capital. Prior to the completion of the American Chartered merger, the trust preferred securities qualified, and were treated by the Company, as Tier 1 regulatory capital.  The Company owns all of the common securities of each trust.  The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment.

The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of June 30, 2018 (in thousands). Subsequent to June 30, 2018, the Company redeemed all of the outstanding junior subordinated notes held by Coal City Capital Trust I, which concurrently redeemed all of its outstanding trust preferred securities, and the Company called for redemption all of the outstanding junior subordinated notes held by TAYC Capital Trust II, which will concurrently redeem all of its outstanding trust preferred securities. See Note 18. Subsequent Events.

	Coal City Capital Trust I		MB Financial Capital Trust II		MB Financial Capital Trust III		MB Financial Capital Trust IV
Junior Subordinated Notes:
Principal balance	$	25,774	$	36,083	$	10,310	$	20,619
Annual interest rate	3-mo LIBOR + 1.80%		3-mo LIBOR + 1.40%		3-mo LIBOR + 1.50%		3-mo LIBOR + 1.52%
Stated maturity date	September 1, 2028		September 15, 2035		September 23, 2036		September 15, 2036
Call date	September 1, 2008		December 15, 2010		September 23, 2011		September 15, 2011
Trust Preferred Securities:
Face Value	$	25,000	$	35,000	$	10,000	$	20,000
Annual distribution rate	3-mo LIBOR + 1.80%		3-mo LIBOR + 1.40%		3-mo LIBOR + 1.50%		3-mo LIBOR + 1.52%
Issuance date	July 1998		August 2005		July 2006		August 2006
Distribution dates (1)	Quarterly		Quarterly		Quarterly		Quarterly

	MB Financial Capital Trust V		MB Financial Capital Trust VI		FOBB Statutory Trust III (2)		TAYC Capital Trust II (3)
Junior Subordinated Notes:
Principal balance	$	30,928	$	23,196	$	5,155	$	41,238
Annual interest rate	3-mo LIBOR + 1.30%		3-mo LIBOR + 1.30%		3-mo LIBOR + 2.80%		3-mo LIBOR + 2.68%
Stated maturity date	December 15, 2037		October 30, 2037		January 23, 2034		June 17, 2034
Call date	December 15, 2012		October 30, 2012		January 23, 2009		June 17, 2009
Trust Preferred Securities:
Face Value	$	30,000	$	22,500	$	5,000	$	40,000
Annual distribution rate	3-mo LIBOR + 1.30%		3-mo LIBOR + 1.30%		3-mo LIBOR + 2.80%		3-mo LIBOR + 2.68%
Issuance date	September 2007		October 2007		December 2003		June 2004
Distribution dates (1)	Quarterly		Quarterly		Quarterly		Quarterly

	American Chartered Statutory Trust II (4)
Junior Subordinated Notes:
Principal balance	$	10,310
Annual interest rate	3-mo LIBOR + 2.75%
Stated maturity date	October 7, 2034
Call date	October 7, 2009
Trust Preferred Securities:
Face Value	$	10,000
Annual distribution rate	3-mo LIBOR + 2.75%
Issuance date	August 2004
Distribution dates (1)	Quarterly

⁽¹⁾  All distributions are cumulative and paid in cash.

⁽²⁾  FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBB”) prior to the Company's acquisition of FOBB in 2006, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition.

⁽³⁾  TAYC Capital Trust II was established by Taylor Capital Group, Inc. (“Taylor Capital”) prior to the Company's acquisition of Taylor Capital in 2014, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a remaining discount of $6.2 million at June 30, 2018.

⁽⁴⁾  American Chartered Statutory Trust II was established by American Chartered prior to the Company's acquisition of American Chartered in August 2016, and the junior subordinated notes issued by American Chartered to American Chartered Statutory Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with American Chartered Statutory Trust II do not include acquisition accounting adjustments to such amounts, which in each case resulted in a remaining discount of $2.6 million at June 30, 2018.

The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption.  Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes.  The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust.  The Company has the right to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above.  During any such deferral period, the Company may not pay cash dividends on its common or preferred stock and generally may not repurchase its common or preferred stock.

On March 19, 2018, the Company redeemed the junior subordinated notes held by American Chartered Statutory Trust I and, as a result, all of the issued and outstanding three month LIBOR + 3.60% American Chartered Statutory Trust I capital (preferred) securities were concurrently redeemed. The aggregate liquidation amount of these trust preferred securities was $20.0 million. American Chartered Statutory Trust I was established by American Chartered prior to the Company's acquisition of American Chartered, and the junior subordinated notes issued by American Chartered to American Chartered Statutory Trust I were assumed by the Company upon completion of the acquisition. As a result, the Company recognized a $3.1 million loss on extinguishment of debt in the first quarter of 2018.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments: The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit, standby letters of credit, and commercial letters of credit.  Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments.  The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments.

At June 30, 2018 and December 31, 2017, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands):

	Contractual Amount
	June 30, 2018		December 31, 2017
Commitments to extend credit:
Home equity lines	$	185,528	$	203,922
Other commitments	4,084,835		4,073,044
Letters of credit:
Standby	165,960		161,014
Commercial	756		2,248

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee.  The commitments for home equity lines of credit may expire without being drawn upon.  Therefore, the total commitment amounts do not necessarily represent future cash requirements.  The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

The Company, in the normal course of its business, regularly offers standby and commercial letters of credit to its bank customers.  Standby and commercial letters of credit are a conditional but irrevocable form of guarantee.  Under letters of credit, the Company typically guarantees payment to a third party beneficiary upon the default of payment or nonperformance by the bank customer and upon receipt of complying documentation from that beneficiary.

Both standby and commercial letters of credit may be issued for any length of time, but normally do not exceed a period of five years.  These letters of credit may also be extended or amended from time to time depending on the bank customer’s needs.  As of June 30, 2018, the maximum remaining term for any standby letters of credit was December 31, 2025.  A fee is charged to the bank customer and is recognized as income over the life of the letter of credit, unless considered non-rebatable under the terms of a letter of credit application.

At June 30, 2018, the aggregate contractual amount of these letters of credit, which represents the maximum potential amount of future payments that the Company would be obligated to pay, increased$3.4 million to $166.7 million from $163.3 million at December 31, 2017.  Of the $166.7 million in commitments outstanding at June 30, 2018, approximately $77.2 million of the letters of credit have been issued or renewed since December 31, 2017.

Letters of credit issued on behalf of bank customers may be done on either a secured or unsecured basis.  If a letter credit is secured, the collateral can take various forms including bank accounts, investments, fixed assets, inventory, accounts receivable or real estate.  The Company takes the same care in making credit decisions and obtaining collateral when it issues letters of credit on behalf of its customers as it does when making other types of loans.

As of June 30, 2018, the Company had approximately $3.2 million in capital expenditure commitments outstanding which relate to various projects to renovate the corporate office space and branches.

Concentrations of credit risk:  As of June 30, 2018, approximately 20% of our investments in securities issued by states and political subdivisions were within the state of Illinois.  We did not hold any direct exposure to the state of Illinois as of June 30, 2018. Our commitments to extend credit are primarily related to commercial credits.  Standby and commercial letters of credit are granted primarily to commercial borrowers. Our asset-based loans are made to borrowers located throughout the United States. Lease banking provides banking services to lessors located throughout the United States. Our leasing subsidiaries originate leases to companies located throughout the United States. In addition, our mortgage segment and indirect vehicle lenders originate loans to borrowers located throughout the United States.

Contingencies: In the normal course of business, the Company is involved in various legal proceedings.  In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company’s consolidated financial statements.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert expected future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process.

Financial Instruments Recorded at Fair Value on a Recurring Basis

Securities Available for Sale. The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level 1. If quoted market prices are not available, the fair value is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level 2. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3. The change in fair value is recorded through an adjustment to the statement of other comprehensive income.

Marketable Equity Securities. The fair values of marketable equity securities are determined by quoted prices in active markets, when available, and classified as Level 1. The change in fair value is recorded through an adjustment to the statement of operations.

Loans Held for Sale. Mortgage loans originated and held for sale in the secondary market are carried at fair value.The fair value of loans held for sale is determined using quoted secondary market prices and classified as Level 2. The change in fair value is recorded through an adjustment to the statement of operations.

Loans. The Company has elected to record certain mortgage loans at fair value. The fair value of these loans is determined using quoted secondary market prices and classified as Level 2. The change in fair value is recorded through an adjustment to the statement of operations.

Mortgage Servicing Rights. The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies and cost to service. The assumptions used in the model are validated on a regular basis. The fair value is validated on a quarterly basis with an independent third party. Any material discrepancies between the internal model and the third party validation are investigated and resolved by an internal committee. Due to the nature of the valuation inputs, mortgage servicing rights are classified in Level 3 of the fair value hierarchy. The change in fair value is recorded through an adjustment to the statement of operations.

Assets Held in Trust for Deferred Compensation and Associated Liabilities.Assets held in trust for deferred compensation are recorded at fair value and included in “Other Assets” on the consolidated balance sheets. These assets are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. The change in fair value is recorded through an adjustment to the statement of operations.

Derivatives. Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative and classified as Level 2. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including LIBOR rate curves. The Company also obtains dealer quotations for these derivatives for comparative purposes to assess the reasonableness of the model valuations. In addition, the Company uses forward commitments to buy to-be-announced mortgage securities for which we do not intend to take delivery of the security and will enter into an offsetting position before physical delivery to lessen the price volatility of the mortgage servicing rights asset. Dealer quotations are used for these derivatives and are classified as Level 1. The Company also offers other derivatives, including foreign currency forward contracts and interest rate lock commitments, to our customers and offset our exposure from such contracts by purchasing other financial contracts, which are valued using market consensus prices. For certain interest rate lock commitments, the Company uses an external valuation model that relies on internally developed inputs to estimate the fair value of its interest rate lock commitments. This is based on unobservable inputs that reflect management’s assumptions and specific information about each borrower transaction and is classified in Level 3 of the hierarchy. The change in fair value is recorded through an adjustment to the statement of operations.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2018
Financial assets
Securities available for sale:
U.S Government sponsored agencies and enterprises	$	5,026	$	—	$	5,026	$	—
States and political subdivisions	350,061		—		349,732		329
Residential mortgage-backed securities	1,205,579		—		1,205,566		13
Commercial mortgage-backed securities	63,424		—		63,424		—
Corporate bonds	23,170		—		23,170		—
Marketable equity securities	10,922		10,922		—		—
Loans held for sale	423,367		—		423,367		—
Loans	36,347		—		36,347		—
Mortgage servicing rights	296,629		—		—		296,629
Assets held in trust for deferred compensation	24,300		24,300		—		—
Derivative financial instruments	52,418		482		51,659		277
Financial liabilities
Other liabilities (1)	24,300		24,300		—		—
Derivative financial instruments	52,572		1,217		51,355		—
December 31, 2017
Financial assets
Securities available for sale:
U.S. Government sponsored agencies and enterprises	$	23,007	$	—	$	23,007	$	—
States and political subdivisions	379,325		—		378,996		329
Residential mortgage-backed securities	852,699		—		852,665		34
Commercial mortgage-backed securities	72,035		—		72,035		—
Corporate bonds	70,197		—		70,197		—
Equity securities	11,063		11,063		—		—
Loans held for sale	548,578		—		548,578		—
Loans	40,531		—		40,531		—
Mortgage servicing rights	276,279		—		—		276,279
Assets held in trust for deferred compensation	21,410		21,410		—		—
Derivative financial instruments	31,499		389		29,539		1,571
Financial liabilities
Other liabilities (1)	21,410		21,410		—		—
Derivative financial instruments	40,296		1,072		39,224		—

⁽¹⁾  Liabilities associated with assets held in trust for deferred compensation

The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a recurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands):

	Fair Value at
	June 30, 2018		Valuation Technique	Unobservable Input	Range
States and political subdivisions	$	329	Discounted cash flows	Credit assumption	40% - 45% Loss
Residential mortgage-backed securities	13		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	296,629		Discounted cash flows	CPR	6.30% - 6.71%
				Discount rate	9.53 - 11.07
				Maturity (months)	326 - 358
				Delinquency rate	2.19 - 4.88
				Costs to service	$ 67 - $ 227
				Additive delinquent costs to service	$ 175 - $ 1,000
Derivative financial instruments (mortgage	277		Sales cash flows	Expected closing ratio	70% - 95%
interest rate lock commitments)				Expected delivery price	98.12 bps - 106.46 bps

	Fair Value at
	December 31, 2017		Valuation Technique	Unobservable Input	Range
States and political subdivisions	$	329	Discounted cash flows	Credit assumption	40-45% Loss
Residential mortgage-backed securities	34		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	276,279		Discounted cash flows	CPR	6.7% - 7.8%
				Discount rate	9.53 - 11.06
				Maturity (months)	324 - 358
				Delinquency rate	2.42 - 5.30
				Costs to service	$ 67 - $ 227
				Additive delinquent costs to service	$ 175 - $ 1,000
Derivative financial instruments (mortgage	1,571		Sales cash flows	Expected closing ratio	70% - 95%
interest rate lock commitments)				Expected delivery price	97.38 bps - 106.87 bps

The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights include prepayment speeds, discount rates, maturities, delinquencies and cost to service. Significant increases in prepayment speeds, discount rates, delinquencies or cost to service would result in a significantly lower fair value measurement. Conversely, significant decreases in prepayment speeds, discount rates, delinquencies or costs to service would result in a significantly higher fair value measurement. With the exception of changes in delinquencies, which can change the cost to service, the unobservable inputs move independently of each other.

Key economic assumptions used in the measuring of the fair value of the mortgage servicing rights and the sensitivity of the fair value to immediate adverse changes in those assumptions at June 30, 2018 are presented in the following table. This table does not take into account the derivatives used to economically hedge the mortgage servicing rights.

(dollars in thousands, except for weighted average cost to service)	June 30, 2018
Weighted average CPR	6.49		%
Impact on fair value of 10% adverse change	$	(8,581	)
Impact on fair value of 20% adverse change	(16,741		)
Weighted average discount rate	9.83		%
Impact on fair value of 10% adverse change	$	(12,630	)
Impact on fair value of 20% adverse change	(24,245		)
Weighted average delinquency rate	4.65		%
Impact on fair value of 10% adverse change	$	(3,657	)
Impact on fair value of 20% adverse change	(6,023		)
Weighted average costs to service	$	91.39
Impact on fair value of 10% adverse change	(5,534		)
Impact on fair value of 20% adverse change	(11,067		)

The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the six months endedJune 30, 2018. The Company's policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels.

The following table presents additional information about financial assets measured at fair value on a recurring basis for which the Company used significant unobservable inputs (Level 3):

	Six Months Ended
	June 30,
	2018			2017			2018			2017			2018			2017
(in thousands)	Investment Securities						Mortgage Servicing Rights						Derivatives
Balance, beginning of period	$	363		$	544		$	276,279		$	238,011		$	1,571		$	3,160
Purchases	—			—			135			786			—			—
Originations	—			—			25,041			27,568			—			—
Included in earnings	—			—			(4,826		)	(16,677		)	(1,294		)	(461		)
Principal payments	(21		)	(82		)	—			—			—			—
Sales	—			—			—			—			—			—
Balance, ending of period	$	342		$	462		$	296,629		$	249,688		$	277		$	2,699

Financial Instruments Recorded at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period.

Impaired Loans.Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with ASC Topic 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. For a majority of impaired real estate loans where an allowance is established based on the fair value of collateral (100% at June 30, 2018), the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information.

Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value

The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include foreclosed assets and non-financial long-lived assets.

Other Real Estate and Repossessed Vehicles Owned (Foreclosed Assets). Foreclosed assets, upon initial recognition, are measured and reported at fair value through a charge-off to the allowance for loan and lease losses based upon the fair value of the foreclosed asset. The fair value of foreclosed assets, upon initial recognition, are estimated using Level 3 inputs based on customized discounting criteria.

Non-Financial Long-Lived Assets.  Non-financial long-lived assets, when determined to be impaired, are measured and reported at fair value using Level 3 inputs based on customized discounting criteria.

Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2018
Financial assets:
Impaired loans	$	62,089	$	—	$	—	$	62,089
Non-financial assets:
Foreclosed assets	14,420		—		—		14,420
December 31, 2017
Financial assets:
Impaired loans	$	60,569	$	—	$	—	$	60,569
Non-financial assets:
Foreclosed assets	15,113		—		—		15,113

The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands):

	Fair Value at		Valuation
	June 30, 2018		Technique	Unobservable Input	Range
Impaired loans	$	62,089	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	14,420		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

	Fair Value at		Valuation
	December 31, 2017		Technique	Unobservable Input	Range
Impaired loans	$	60,569	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	15,113		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The estimated fair value approximates carrying value for cash and cash equivalents, accrued interest and the cash surrender value of life insurance policies. The methodologies for other financial assets and financial liabilities are discussed below:

The following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments:

Cash and due from banks and interest earning deposits with banks: The carrying amounts reported in the balance sheet approximate fair value.

Securities held to maturity: The fair values of securities held to maturity are determined by quoted prices in active markets, when available, and classified as Level 1. If quoted market prices are not available, the fair value is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level 2. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3.

Non-marketable securities - FHLB and FRB Stock: The carrying amounts reported in the balance sheet approximate fair value.

Loans: The fair values for loans are estimated using discounted cash flow analyses, using the corporate bond curve adjusted for liquidity for commercial loans and the swap curve adjusted for liquidity for retail loans, including increased interest rate spreads to incorporate a credit mark, estimating an exit price.

Non-interest bearing deposits: The fair values disclosed are equal to their balance sheet carrying amounts, which represent the amount payable on demand.

Interest bearing deposits: The fair values disclosed for deposits with no defined maturities are equal to their carrying amounts, which represent the amounts payable on demand. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies the Company's current incremental borrowing rates for similar terms.

Short-term borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings with maturities of 90 days or less approximate their fair values.  The fair value of short-term borrowings greater than 90 days is based on the discounted value of contractual cash flows.

Long-term borrowings: The fair values of the Company's long-term borrowings (other than deposits) are estimated using discounted cash flow analyses, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements.

Junior subordinated notes issued to capital trusts: The fair values of the Company's junior subordinated notes issued to capital trusts are estimated based on the quoted market prices, when available, of the related trust preferred security instruments, or are estimated based on the quoted market prices of comparable trust preferred securities.

Accrued interest: The carrying amount of accrued interest receivable and payable approximate their fair values.

Off-balance-sheet instruments: Fair values for the Company’s off-balance-sheet lending commitments (guarantees, letters of credit and commitments to extend credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements.

The estimated fair values of financial instruments are as follows (in thousands):

	June 30, 2018
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	$	373,448	$	373,448	$	373,448	$	—	$	—
Interest earning deposits with banks	119,672		119,672		119,672		—		—
Investment securities available for sale	1,647,260		1,647,260		—		1,646,918		342
Investment securities held to maturity	923,036		940,203		—		940,203		—
Marketable equity securities	10,922		10,922		10,922		—		—
Non-marketable securities - FHLB and FRB stock	115,453		115,453		—		—		115,453
Loans held for sale	423,367		423,367		—		423,367		—
Loans, net	13,657,455		13,728,529		—		36,347		13,692,182
Accrued interest receivable	65,129		65,129		65,129		—		—
Derivative financial instruments	52,418		52,418		482		51,659		277
Financial Liabilities:
Non-interest bearing deposits	$	6,347,208	$	6,347,208	$	6,347,208	$	—	$	—
Interest bearing deposits	8,575,455		8,563,444		—		—		8,563,444
Short-term borrowings	651,462		651,328		—		—		651,328
Long-term borrowings	730,292		731,194		—		—		731,194
Junior subordinated notes issued to capital trusts	194,450		163,817		—		—		163,817
Accrued interest payable	7,058		7,058		7,058		—		—
Derivative financial instruments	52,572		52,572		1,217		51,355		—

	December 31, 2017
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	$	397,880	$	397,880	$	397,880	$	—	$	—
Interest earning deposits with banks	181,341		181,341		181,341		—		—
Investment securities available for sale	1,408,326		1,408,326		11,063		1,396,900		363
Investment securities held to maturity	959,082		992,455		—		992,455		—
Non-marketable securities - FHLB and FRB stock	114,111		114,111		—		—		114,111
Loans held for sale	548,578		548,578		—		548,578		—
Loans, net	13,808,352		13,988,392		—		40,531		13,947,861
Accrued interest receivable	63,589		63,589		63,589		—		—
Derivative financial instruments	31,499		31,499		389		29,539		1,571
Financial Liabilities:
Non-interest bearing deposits	$	6,381,512	$	6,381,512	$	6,381,512	$	—	$	—
Interest bearing deposits	8,576,866		8,569,368		—		—		8,569,368
Short-term borrowings	861,039		860,676		—		—		860,676
Long-term borrowings	505,158		513,725		—		—		513,725
Junior subordinated notes issued to capital trusts	211,494		170,965		—		—		170,965
Accrued interest payable	6,458		6,458		6,458		—		—
Derivative financial instruments	40,296		40,296		1,072		39,224		—

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Stock Incentive Plans

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Incentive Plans

Stock Incentive Plans

ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such award.

The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Total compensation expense for share-based payment plans during the period	$	4,695	$	4,443	$	9,146	$	8,924
Amount of related income tax benefit recognized in income (1)	2,599		1,916		3,953		6,338

⁽¹⁾ Includes tax benefits recorded for the vesting of restricted shares and exercise of options.

The Company adopted the Omnibus Incentive Plan (the “Omnibus Plan”) in 1997.  On May 28, 2014, the Company’s stockholders approved the third amendment and restatement of the Omnibus Plan to add 3,100,000 authorized shares for a total of 11,400,000 shares of common stock authorized to be utilized in connection with awards under the Omnibus Plan to directors, officers, and employees of the Company or any of its subsidiaries. The number of shares authorized increased by 2,400,000 to 13,800,000 upon completion of the Taylor Capital merger.  Equity grants under the Omnibus Plan can be in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, and other stock-based awards.  Shares awarded in the form of restricted stock, restricted stock units, performance shares, performance units, or other stock-based awards generally will reduce the shares available under the Omnibus Plan on a 2-for-1 basis. No more than 10% of the total number of authorized shares may be issued with respect to awards granted after May 28, 2014, other than stock appreciation rights, stock options and performance-based awards, which at the date of grant are scheduled to fully vest prior to three years from the date of grant (although such awards may provide scheduled vesting earlier with respect to some of such shares and for acceleration of vesting as provided in the Omnibus Plan).  As of June 30, 2018, there were 2,114,097 shares available for future grants.

Annual equity-based incentive awards are generally granted to selected officers and employees in the first quarter of the year.  Options are granted with an exercise price equal to no less than the market price of the Company’s shares at the date of grant; those option awards generally vest over four years of service and have 10-year contractual terms.  Restricted shares and units typically vest over a two to four year period.  Equity awards may also be granted at other times throughout the year in connection with the recruitment and retention of officers and employees.  Directors currently may elect, in lieu of cash, to receive up to 70% of their fees in stock options with a five year term, which are fully vested on the grant date (provided that the director may not sell the underlying shares for at least six months after the grant date), and up to 100% of their fees in restricted shares, which vest one year after the grant date.

The following table summarizes changes in stock options for the six months endedJune 30, 2018:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of December 31, 2017	1,721,978		$	29.10	5.19
Granted	160,644		41.14
Exercised	(380,567	)	26.39
Expired	(1,092	)	39.28
Forfeited or cancelled	(9,411	)	28.93
Options outstanding as of June 30, 2018	1,491,552		$	31.08	6.11	$	23,303
Options exercisable as of June 30, 2018	989,220		$	28.19	4.99	$	18,313

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions.  Expected volatility is based on historical volatility and the expectations of future volatility of Company shares.  The risk free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.  The expected life of options is estimated based on historical employee behavior and represents the period of time that options granted are expected to remain outstanding.

 The following assumptions were used for options granted during the six months endedJune 30, 2018:

	June 30, 2018
Risk-free interest rate	2.80		%
Expected volatility of Company’s stock	26.13		%
Expected dividend yield	2.06		%
Expected life of options	5.9 years
Weighted average fair value per option of options granted during the year	$	9.65

The total intrinsic value of options exercised during the six months endedJune 30, 2018 and 2017 was $8.3 million and $3.9 million, respectively.

The following is a summary of changes in restricted shares and units for the six months endedJune 30, 2018:

	Number of Shares and Units		Weighted Average Grant Date Fair Value
Shares and units outstanding at December 31, 2017	973,201		$	37.03
Granted	414,895		41.45
Vested	(303,774	)	34.98
Forfeited or cancelled	(88,806	)	34.86
Shares and units outstanding at June 30, 2018	995,516		39.69

The total intrinsic value of restricted shares and units that vested during the six months endedJune 30, 2018 and 2017 was $12.8 million and $15.5 million, respectively.

The Company awarded 71,567, 65,476, and 80,780 market-based restricted stock units in 2018, 2017, and 2016, respectively, which entitle recipients to shares of common stock at the end of a three year vesting period. Recipients will earn shares, totaling between 0% and 175% of the number of units issued, based on the Company's total stockholder return relative to a specified peer group of financial institutions over the three year period. The Company awarded 71,560 market-based restricted stock units in 2015 that vested in 2018. The threshold performance for the units granted in 2015 was not met and, as a result, no shares were issued. The market-based restricted stock units are included in the preceding table as if the recipients earned shares equal to 100% of the units issued. A Monte Carlo simulation model was used to value the market-based restricted stock units at the time awarded.

As of June 30, 2018, there was $30.9 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share option and nonvested share awards) granted under the Omnibus Plan.  At June 30, 2018, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately two years.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company offers various derivatives, including interest rate swaps and foreign currency forward contracts, to its qualifying customers which can mitigate our exposure to market risk through the execution of off-setting positions with inter-bank dealer counterparties. This also permits the Company to offer customized risk management solutions to our customers. These customer accommodations and any offsetting financial contracts are treated as non-designated derivative instruments and carried at fair value through an adjustment to the statement of operations.

Interest rate swap and foreign currency forward contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. The net amount payable or receivable under interest rate swaps is accrued as an adjustment to interest income.  The net amount payable as of June 30, 2018 and December 31, 2017 was approximately $1 thousand.  The Company's credit exposure on interest rate swaps is limited to the Company's net favorable value and interest payments of all swaps to each counterparty. In such cases, collateral is generally required from the counterparties involved if the net value of the swaps exceeds a nominal amount.  At June 30, 2018, the Company’s credit exposure relating to interest rate swaps was approximately $17.7 million, which is secured by the underlying collateral on customer loans. 

The Company also enters into mortgage banking derivatives which are classified as non-designated hedging derivatives. These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale.

The Company had fair value commercial loan interest rate swaps, to hedge its interest rate risk, with an aggregate notional amount of $32 thousand at June 30, 2018.  For fair value hedges, the changes in fair values of both the hedging derivative and the hedged item were recorded in current earnings as other income.

Interest rate swaps, swaptions and treasury futures are used in order to lessen the price volatility of the mortgage servicing rights asset. The Company also uses forward commitments to buy to-be-announced ("TBA") mortgage securities for which the Company does not intend to take delivery of the security and will enter into an offsetting position before physical delivery to lessen the price volatility of the mortgage servicing rights asset. These derivatives are recorded at their fair value on the consolidated balance sheets in other assets with changes in fair value recorded on the consolidated statements of operations in mortgage banking revenue in non-interest income.

The Company’s derivative financial instruments are summarized below as of June 30, 2018 and December 31, 2017 (in thousands):

	Asset Derivatives								Liability Derivatives
	June 30, 2018				December 31, 2017				June 30, 2018					December 31, 2017
	Notional		Estimated		Notional		Estimated		Notional		Estimated			Notional		Estimated
	Amount		Fair Value		Amount		Fair Value		Amount		Fair Value			Amount		Fair Value
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts (1)	$	—	$	—	$	—	$	—	$	32	$	(1	)	$	58	$	(1	)
Stand-alone derivative instruments: (2)
Interest rate swap contracts	1,732,420		34,477		1,563,109		21,217		1,732,420		(34,477		)	1,563,109		(21,217		)
Interest rate options contracts	510,228		3,818		372,927		1,887		510,157		(3,818		)	372,927		(1,887		)
Foreign exchange contracts	64,661		2,309		40,713		1,934		53,842		(2,006		)	34,029		(1,759		)
Spot foreign exchange contracts	10,135		18		1,424		23		11,823		(23		)	24		—
Mortgage related derivatives:
Interest rate swap contracts	270,000		10,983		458,000		4,479		320,000		(11,031		)	1,008,000		(14,360		)
Interest rate swaptions contracts	240,000		54		—		—		—		—			—		—
Treasury futures contracts	20,000		66		28,000		39		32,500		(105		)	30,000		(222		)
TBA mortgage securities	50,000		359		15,000		16		—		—			100,000		(63		)
Forward loan sale commitments	36,000		57		259,000		333		298,700		(1,111		)	483,500		(787		)
Interest rate lock commitments	66,093		277		404,557		1,571		—		—			—		—
Total stand-alone derivative instruments	2,999,537		52,418		3,142,730		31,499		2,959,442		(52,571		)	3,591,589		(40,295		)
Total	$	2,999,537	$	52,418	$	3,142,730	$	31,499	$	2,959,474	$	(52,572	)	$	3,591,647	$	(40,296	)

⁽¹⁾ Derivative instruments designated to hedge fixed-rate commercial real estate loans.

⁽²⁾ These portfolio swaps are not designated as hedging instruments under ASC Topic 815.

Amounts included in other operating income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts	$	1		$	1		$	1		$	2
Stand-alone derivative instruments:
Interest rate swap contracts	1,913			1,624			3,628			3,473
Interest rate options contracts	—			—			—			—
Foreign exchange contracts	212			197			255			260
Spot foreign exchange contracts	884			729			1,617			1,407
Mortgage related derivatives	(872		)	(301		)	(1,453		)	(10,442		)
Total stand-alone derivative instruments	2,137			2,249			4,047			(5,302		)
Total	$	2,138		$	2,250		$	4,048		$	(5,300	)

Methods and assumptions used by the Company in estimating the fair value of its interest rate swaps are discussed in Note 13 to consolidated financial statements.

Certain instruments and transactions subject to an agreement similar to a master netting arrangement are eligible for offset in the consolidated balance sheet. The instruments and transactions would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The Company’s derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. Under these agreements, there is generally a legally enforceable right to offset recognized amounts, and there may be an intention to settle such amounts on a net basis. The Company, however, does not generally offset such financial instruments for financial reporting purposes.

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of June 30, 2018 is summarized below (in thousands):

	Financial Assets						Financial Liabilities
	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized		Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
Derivatives:
Interest rate swap contracts, caps and floors	$	33,823	$	—	$	33,823	$	4,649	$	—	$	4,649
Foreign exchange contracts	1,338		—		1,338		966		—		966
Mortgage related derivatives	11,518		—		11,518		12,248		—		12,248
Total derivatives	46,679		—		46,679		17,863		—		17,863
Repurchase agreements	—		—		—		244,462		—		244,462
Total	$	46,679	$	—	$	46,679	$	262,325	$	—	$	262,325

	Financial Assets										Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral			Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	16,943	$	(11,030	)	$	—		$	5,913	$	11,030	$	(11,030	)	$	—		$	—
Counterparty B	9,885		(2,262		)	—			7,623		2,262		(2,262		)	—			—
Counterparty C	3,253		(492		)	(2,761		)	—		492		(492		)	—			—
Other counterparties	16,598		(531		)	(3,434		)	12,633		4,079		(531		)	(690		)	2,858
Total derivatives	46,679		(14,315		)	(6,195		)	26,169		17,863		(14,315		)	(690		)	2,858
Repurchase agreements	—		—			—			—		244,462		—			(244,462		)	—
Total	$	46,679	$	(14,315	)	$	(6,195	)	$	26,169	$	262,325	$	(14,315	)	$	(245,152	)	$	2,858

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2017 is summarized below (in thousands):

	Financial Assets						Financial Liabilities
	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized		Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
Derivatives:
Interest rate swap contracts, caps and floors	$	11,659	$	—	$	11,659	$	11,562	$	—	$	11,562
Foreign exchange contracts	1,013		—		1,013		953		—		953
Mortgage related derivatives	4,868		—		4,868		15,432		—		15,432
Total derivatives	17,540		—		17,540		27,947		—		27,947
Repurchase agreements	—		—		—		232,789		—		232,789
Total	$	17,540	$	—	$	17,540	$	260,736	$	—	$	260,736

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	6,068	$	(6,068	)	$	—	$	—	$	13,807	$	(6,068	)	$	(7,739	)	$	—
Counterparty B	3,261		(3,261		)	—		—		5,595		(3,261		)	(2,334		)	—
Counterparty C	5,285		(3,640		)	—		1,645		3,640		(3,640		)	—			—
Other counterparties	2,926		(1,750		)	—		1,176		4,905		(1,750		)	(3,150		)	5
Total derivatives	17,540		(14,719		)	—		2,821		27,947		(14,719		)	(13,223		)	5
Repurchase agreements	—		—			—		—		232,789		—			(232,789		)	—
Total	$	17,540	$	(14,719	)	$	—	$	2,821	$	260,736	$	(14,719	)	$	(246,012	)	$	5

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Operating Segments

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Operating Segments

Operating Segments

The Company's operations currently consist of three reportable operating segments: Banking, Leasing, and Mortgage Banking. The Company offers different products and services through its three segments. The accounting policies of the segments are generally the same as those of the consolidated company.

The Banking Segment generates its revenues primarily from its lending, deposit gathering and fee business activities. The profitability of this segment's operations depends primarily on its net interest income after provision for credit losses, which is the difference between interest earned on interest earning assets and interest paid on interest bearing liabilities less provision for credit losses.  The provision for credit losses is almost entirely dependent on changes in the Banking Segment's loan portfolio and management’s assessment of the collectability of the loan portfolio as well as prevailing economic and market conditions.  The Banking Segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of depositors and other customers, federal deposit insurance funds and the banking system as a whole.  These laws and regulations govern such areas as capital, permissible activities, allowance for loan and lease losses, loans and investments, and rates of interest that can be charged on loans. 

The Leasing Segment generates its revenues through lease originations and related services. The Leasing Segment invests directly in equipment that the Company leases (referred to as direct finance, leveraged or operating leases) to "Fortune 1000," middle-market companies and health care providers located throughout the United States. The lease portfolio is made up of various kinds of equipment, generally technology related, such as computer systems, satellite equipment, medical equipment and general manufacturing, industrial, construction and transportation equipment. The Leasing Segment also specializes in selling third party equipment maintenance contracts to large companies.

The Mortgage Banking Segment originates residential mortgage loans for sale to investors and for the Company's portfolio through its retail and third party originator channels. This segment also services residential mortgage loans for various investors and for loans owned by the Company. The Mortgage Banking Segment is subject to an extensive system of laws and regulations that are intended primarily for the protection of customers. On April 12, 2018, the Company announced the discontinuation of its national mortgage origination business, which includes substantially all originations outside of the Company's consumer banking footprint in the Chicagoland area. The Company expects to stop operating its mortgage business as a defined segment with separate Mortgage Banking Segment reporting prior to the first quarter of 2019.

Net interest income for the Leasing and Mortgage Banking segments include adjustments based on the Company's internal funds transfer pricing model. Non-interest income for the Leasing Segment includes income on loans originated for the sole purpose of funding equipment purchases related to leases at the Company's lease subsidiaries.

The following tables present summary financial information for the reportable segments (in thousands):

	Banking		Leasing		Mortgage Banking			Consolidated
Three months ended June 30, 2018
Net interest income	$	146,614	$	2,349	$	10,106		$	159,069
Provision for credit losses	5,746		500		(27		)	6,219
Non-interest income	46,716		22,651		18,939			88,306
Non-interest expense (1)	124,682		15,212		53,098			192,992
Income tax expense	15,009		1,052		(6,430		)	9,631
Net income	$	47,893	$	8,236	$	(17,596	)	$	38,533
Total assets	$	16,581,205	$	1,354,940	$	2,030,412		$	19,966,557
Three months ended June 30, 2017
Net interest income	$	135,982	$	2,345	$	10,667		$	148,994
Provision for credit losses	8,890		410		399			9,699
Non-interest income	43,491		18,180		29,499			91,170
Non-interest expense (1)	117,022		13,436		35,754			166,212
Income tax expense	15,662		2,525		1,600			19,787
Net income	$	37,899	$	4,154	$	2,413		$	44,466
Total assets	$	16,320,111	$	1,275,386	$	2,369,560		$	19,965,057

⁽¹⁾  Includes merger related and repositioning expenses of $5.5 million and $19.5 million in the Banking and Mortgage Banking Segment, respectively, for the three months ended June 30, 2018 and $7.2 million in the Banking Segment for the three months ended June 30, 2017.

	Banking		Leasing		Mortgage Banking			Consolidated
Six months ended June 30, 2018
Net interest income	$	287,085	$	4,831	$	20,534		$	312,450
Provision for credit losses	13,325		476		(74		)	13,727
Non-interest income	89,808		47,507		43,793			181,108
Non-interest expense (1)	240,510		30,708		89,660			360,878
Income tax expense	28,617		1,808		(6,762		)	23,663
Net income	$	94,441	$	19,346	$	(18,497	)	$	95,290
Total assets	$	16,581,205	$	1,354,940	$	2,030,412		$	19,966,557
Six months ended June 30, 2017
Net interest income	$	267,431	$	4,614	$	19,992		$	292,037
Provision for credit losses	12,417		275		741			13,433
Non-interest income	86,699		39,643		57,278			183,620
Non-interest expense (1)	225,538		27,280		69,736			322,554
Income tax expense	31,322		6,644		2,701			40,667
Net income	$	84,853	$	10,058	$	4,092		$	99,003
Total assets	$	16,320,111	$	1,275,386	$	2,369,560		$	19,965,057

⁽¹⁾  Includes merger related and repositioning expenses of $5.5 million and $20.1 million in the Banking and Mortgage Banking Segment, respectively, for the six months endedJune 30, 2018 and $7.4 million in the Banking Segment for the six months endedJune 30, 2017.

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Preferred Stock

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Preferred Stock

Preferred Stock

On August 18, 2014, in connection with the Taylor Capital merger, the Company issued one share of its Perpetual Non-Cumulative Preferred Stock, Series A (“Company Series A Preferred Stock”), in exchange for each of the 4,000,000 outstanding shares of Taylor Capital’s Perpetual Non-Cumulative Preferred Stock, Series A. Holders of the Company Series A Preferred Stock were entitled to receive, when as and if declared by the Company’s board of directors, non-cumulative cash dividends on the liquidation preference amount, which was $25 per share, at a rate of 8.00% per annum, payable quarterly. The Company Series A Preferred Stock was included in Tier 1 capital for regulatory capital purposes. On February 15, 2018, the Company redeemed all of the 4,000,000 issued and outstanding shares of Company Series A Preferred Stock at a redemption price of $25.00 per share, or $100.0 million in the aggregate. The excess carrying amount of the Series A Preferred Stock in the amount of $15.3 million was retained in stockholders' equity and reflected as income available to common stockholders, which was included in the calculation of earnings per common share.

On November 22, 2017, the Company issued8,000,000depositary shares, each representing a 1/40th interest in a share of itsNon-Cumulative Preferred Stock, Series C (“Company Series C Preferred Stock”). Holders of the Company Series C Preferred Stock are entitled to receive, when as and if declared by the Company's board of directors, non-cumulative cash dividends on the liquidation preference, which is $25 per depositary share (equivalent to $1,000 per share of preferred stock), at a rate of 6.00% per annum, payable quarterly. The Company Series C Preferred Stock is included in Tier 1 capital for regulatory capital purposes and is redeemable at the option of the Company at a redemption price of $25 per depositary share, plus any declared and unpaid dividends, (i) in whole or in part from time to time, on any dividend payment date on or after November 25, 2022, and (ii) in whole but not in part prior to November 25, 2022, within 90 days following a “regulatory capital treatment event,” as defined in the terms of the Company Series C Preferred Stock. The Company must receive the approval of the Federal Reserve Board prior to any redemption of the Company Series C Preferred Stock.

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Definitive Merger Agreement

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Definitive Merger Agreement

Definitive Merger Agreement

On May 20, 2018, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Fifth Third Bancorp, an Ohio corporation ("Fifth Third"), and its wholly-owned subsidiary, Fifth Third Financial Corporation, an Ohio corporation ("Intermediary"). The Merger Agreement provides for the combination of the Company and Fifth Third, either through the merger of the Company with and into Intermediary, with Intermediary as the surviving corporation (the "Direct Merger"), or through the merger of a newly formed subsidiary of Fifth Third with and into the Company, with the Company as the surviving corporation (the "Alternative Merger" and collectively with the Direct Merger, the "Merger"). Only if the Direct Merger is not approved by the holders of the Company Series C Preferred Stock will the Alternative Merger occur instead of the Direct Merger, if the holders of the Company's common stock ("Company Common Stock") approve the Merger and the Charter Amendment (as defined and described below).

At the effective time of the Merger (the "Effective Time"), each outstanding share of Company Common Stock will be converted into the right to receive (i) 1.45 shares of Fifth Third common stock ("Fifth Third Common Stock"), and (ii) $5.54 in cash (collectively, the "Merger Consideration"). In addition, if the Direct Merger is approved by the holders of Company Series C Preferred Stock, each share of Company Series C Preferred Stock will be converted into the right to receive one share of a newly created series of preferred stock of Fifth Third, having substantially the same terms as the Company Series C Preferred Stock, except that the new series of preferred stock will have no voting rights (including upon an arrearage in the payment of dividends thereon) except as required by Ohio law and have certain other differences consistent with Fifth Third’s currently outstanding series of preferred stock and its articles of incorporation. If the Direct Merger is not approved by the holders of Company Series C Preferred Stock, then the Alternative Merger will occur instead of the Direct Merger, in which case the holders of Company Common Stock will receive the same Merger Consideration as described above, but the Company Series C Preferred Stock will not be converted into a share of new Fifth Third preferred stock and will instead remain outstanding and unchanged (except as modified by the Charter Amendment) as preferred stock of the Company, which will be a subsidiary of Fifth Third.

Pursuant to an amendment to the Company's charter (the "Charter Amendment"), effective immediately prior to consummation of the Alternative Merger, the holders of Company Series C Preferred Stock will have the right to vote with the holders of Company Common Stock as a single class on all matters submitted to a vote of such common stockholders. Upon completion of the Alternative Merger, Fifth Third, as the sole holder of Company Common Stock, will control the Company. Following completion of the Alternative Merger, the holders of Company Series C Preferred Stock will vote with Fifth Third as a single class on all matters submitted to a vote of Fifth Third, as the sole common stockholder of the Company. Thus, the voting rights that would be conferred upon the holders of Company Series C Preferred Stock by the Charter Amendment would continue to apply with respect to the Company, and not Fifth Third, following completion of the Alternative Merger.

At the Effective Time, each option granted by the Company to purchase shares of Company Common Stock (the "Company Options") will be converted into an option to purchase shares of Fifth Third Common Stock on the same terms and conditions as were applicable to such Company Options prior to the Merger, subject to certain adjustments to the exercise price and the number of shares of Fifth Third Common Stock issuable upon exercise of such option in accordance with the Merger Agreement. In addition, each Company restricted stock award, restricted stock unit and performance-based award (the "Company Equity Awards") that remains unvested and would not automatically vest by its terms at the Effective Time will be assumed by Fifth Third and converted into a number of shares of Fifth Third Common Stock (the "Assumed Equity Awards") with such shares being subject to certain adjustments in accordance with the Merger Agreement but otherwise remaining subject to the same terms and conditions as applicable immediately prior to such conversion. Each Company Equity Award that is outstanding immediately prior to the Effective Time that is not assumed under the Merger Agreement will be cancelled and converted automatically into the right to receive the Merger Consideration.

The Merger is subject to regulatory approvals, approval by the Company's stockholders, and certain other customary closing conditions.

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Subsequent Events Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On August 6, 2018, the Company redeemed the junior subordinated notes held by Coal City Capital Trust I and, as a result, all of the issued and outstanding three month LIBOR + 1.80% Coal City Capital Trust I capital (preferred) securities were concurrently redeemed. The aggregate liquidation amount of these trust preferred securities was $25.0 million.

On September 17, 2018, the Company will redeem the junior subordinated notes held by TAYC Capital Trust II and, as a result, all of the issued and outstanding three month LIBOR + 2.68% TAYC Capital Trust II capital (preferred) securities will be concurrently redeemed. The aggregate liquidation amount of these trust preferred securities is $40.0 million.

For additional information regarding these securities, see Note 10. Junior Subordinated Notes Issued to Capital Trusts.

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New Authoritative Accounting Guidance (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Changes and Error Corrections [Abstract]

New Authoritative Accounting Guidance

ASC Topic 805 "Business Combinations." New authoritative accounting guidance under ASC Topic 805 "Business Combinations" amends prior guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 606 "Revenue from Contracts with Customers." New authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" amended prior guidance to require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. The Company's revenue is comprised of interest income on financial assets, which is excluded from the scope of this new guidance, and non-interest income. This new guidance changes how certain recurring revenue streams are recognized within lease financing revenue and insignificant components of non-interest income. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

ASC Topic 825 "Financial Instruments." New authoritative accounting guidance under ASC Topic 825 "Financial Instruments" amended prior guidance to require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The new guidance simplifies the impairment assessment of equity investments without readily determinable fair values, requires public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from changes in the instrument-specific credit risk when the entity has selected the fair value option for financial instruments and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

ASC Topic 405 "Liabilities-Extinguishment of Liabilities." New authoritative accounting guidance under ASC Topic 405, "Liabilities-Extinguishment of Liabilities" amended prior guidance to clarify that liabilities related to the sale of prepaid store-value products within the scope of this guidance are financial liabilities and that breakage for those liabilities are to be accounted for consistent with the breakage guidance in ASC Topic 606 "Revenue from Contracts with Customers." The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 842 "Leases." New authoritative accounting guidance under ASC Topic 842 "Leases" amended prior guidance to require lessees to recognize the assets and liabilities arising from all leases on the balance sheet. The new authoritative guidance defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In addition, the qualifications for a sale and leaseback transaction have been amended. The new authoritative guidance also requires qualitative and quantitative disclosures bylessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The new authoritative guidance will be effective for reporting periods after January 1, 2019. In July 2018, the Financial Accounting Standards Board issued new authoritative guidance to provide an additional transition method that allows entities to not apply this new guidance in the comparative periods presented in the financial statements and instead recognize a cumulative effect adjustment to the beginning retained earnings at the date of application. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition. The Company expects an increase in assets and liabilities as a result of recording additional lease contracts where the Company is lessee.

ASC Topic 815 "Derivatives and Hedging." New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new authoritative guidance expands and refines hedge accounting for both nonfinancial and financial risk components. The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 718 "Compensation - Stock Compensation." New authoritative accounting guidance under ASC Topic 718 "Compensation - Stock Compensation" amends prior guidance by clarifying which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification of the modified award are the same as the original award. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 326 "Financial Instruments - Credit Losses." New authoritative accounting guidance under ASC Topic 326 "Financial Instruments - Credit Losses" amended the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The new authoritative guidance also requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected (net of the allowance for credit losses). In addition, the credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses rather than a write-down. The new authoritative guidance will be effective for reporting periods after January 1, 2020. The Company is evaluating the new guidance and expects it to have an impact on the Company's statements of operations and financial condition, the significance of which is not yet known nor can it be reasonably estimated currently. Due to the significant differences in the new authoritative guidance from existing GAAP, the implementation of this guidance may result in material changes in our accounting for credit losses on the financial instruments and will be impacted by the Company's loan and securities portfolios' composition, attributes, and quality in addition to the prevailing economic conditions and forecasts at the time of adoption. As part of the Company's evaluation process, it has established a steering committee and working group, including individuals from various functional areas, to assess processes and related controls, portfolio segmentation, model development, system requirements, and needed resources.

ASC Topic 230 "Statement of Cash Flows." New authoritative accounting guidance under ASC Topic 230 "Statement of Cash Flows" addresses eight specific cash flow classification issues with the objective of reducing the existing diversity in practice. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

New authoritative accounting guidance under ASC Topic 230 "Statement of Cash Flows" amends prior guidance to require an entity to include amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 740 "Income Taxes." New authoritative accounting guidance under ASC Topic 740 "Income Taxes" amends prior guidance to require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 350 "Intangibles-Goodwill and Other." New authoritative accounting guidance under ASC Topic 350 "Intangibles-Goodwill and Other" amends prior guidance to eliminate Step 2 from the goodwill impairment test and require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new authoritative guidance will be effective for reporting periods after January 1, 2020. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition.

ASC Topic 610 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets." New authoritative accounting guidance under ASC Topic 610 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" amends prior guidance to clarify the scope of Subtopic 610-20 by defining in substance nonfinancial assets and to add guidance for partial sales of nonfinancial assets. The Company adopted this new authoritative guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 310 "Receivables - Nonrefundable Fees and Other Costs." New authoritative accounting guidance under ASC Topic 310 "Receivables - Nonrefundable Fees and Other Costs" amends prior guidance by shortening the amortization period for certain callable debt securities held at a premium requiring the premium to be amortized to the earliest call date. The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition.

ASC Topic 220 "Income Statement - Reporting Comprehensive Income." New authoritative accounting guidance under ASC Topic 220 "Income Statement - Reporting Comprehensive Income" allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from enactment of H.R. 1, originally known as the "Tax Cuts and Jobs Act." The new authoritative guidance will be effective for reporting periods after January 1, 2019 with early adoption permitted. The Company early adopted the new guidance on January 1, 2018, and it did not have a significant impact on the Company's statements of operations or financial condition. See "Accounting changes" below.

Accounting changes. The Company adopted the new authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" on January 1, 2018 using the modified retrospective transition method for contracts that were not completed at the date of initial application. The Company recognized a cumulative effect reduction to the beginning retained earnings totaling $683 thousand. This amount relates to lease financing revenue where the Company's performance obligation is over time. Previously, such revenue was recognized immediately. See "Lease financing revenue, net" below.

The new authoritative accounting guidance under ASC Topic 606 requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The non-interest revenue streams that are considered to be in the scope of this new guidance are discussed below.

Lease financing revenue, net. Fees from the sale of third-party equipment maintenance contracts are included within lease financing revenue, net. The Company sells third-party equipment maintenance contracts and provides customers with an asset and maintenance contract management tool over the life of the maintenance contract. Since the Company provides support for the asset and maintenance contract management tool, the Company's performance obligation is satisfied over the life of the maintenance contract, and the fees are recognized monthly over the life of the maintenance contract. Payment is typically received at the time of sale of the maintenance contract.

Treasury management fees and consumer and other deposit service fees. Deposit related fees (account analysis fees, monthly service fees, and other related fees) are included within treasury management fees and consumer and other deposit service fees. The Company's performance obligation is ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly.

Wealth management fees. Wealth management fees include revenue from the management and advisement of client assets and trust administration. The Company's performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually.

Card fees. Card fees include debit and credit card interchange fees and ATM fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. The Company's performance obligation for ATM fees is satisfied when services are provided, and the fees are recognized at that time. Payment is typically received immediately or in the following month.

Capital markets and international banking fees. Capital markets and international banking fees include M&A advisory and syndication fees. The Company's performance obligation is generally satisfied over time, and the fees are recognized monthly. For M&A advisory fees, a portion of the payment is received at the beginning of the engagement with the remainder once the transaction is completed. For syndication fees, payment is received annually.

The Company also adopted the new authoritative accounting guidance under ASC Topic 825 "Financial Instruments" and ASC Topic 220 "Income Statement - Reporting Comprehensive Income" on January 1, 2018. The Company recognized a cumulative effect increase to the beginning retained earnings and accumulated other comprehensive income totaling $385 thousand under ASC Topic 825 representing the fair value adjustment to equity securities at the date of initial application. In addition, the Company reclassified $729 thousand from accumulated other comprehensive loss to retained earnings for the stranded tax effects resulting from enactment of the Tax Cuts and Jobs Act at the date of initial application of the new guidance under ASC Topic 220.

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Reconciliation of the Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Common Share

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (amounts in thousands, except share and per share data).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Distributed earnings allocated to common stock	$	20,472	$	17,829	$	40,755	$	33,960
Undistributed earnings	18,061		26,637		54,535		65,043
Net income	38,533		44,466		95,290		99,003
Less: preferred stock dividends	3,000		2,002		6,100		4,005
Plus: return from preferred stockholders due to redemption (1)	—		—		15,280		—
Net income available to common stockholders for basic earnings per common share	35,533		42,464		104,470		94,998
Plus: preferred stock dividends on convertible preferred stock	—		2		—		5
Less: earnings allocated to participating securities	1		1		3		2
Earnings allocated to common stockholders for diluted earnings per common share	$	35,532	$	42,465	$	104,467	$	95,001
Weighted average shares outstanding for basic earnings per common share	84,253,966		83,842,963		84,160,344		83,753,195
Dilutive effect of:
Stock options	553,999		554,314		530,892		595,415
Restricted shares and units	443,845		363,003		383,390		417,433
Convertible preferred stock	—		7,134		—		7,228
Total dilutive effect of equity awards and convertible preferred stock	997,844		924,451		914,282		1,020,076
Weighted average shares outstanding for diluted earnings per common share	85,251,810		84,767,414		85,074,626		84,773,271
Basic earnings per common share	$	0.42	$	0.51	$	1.24	$	1.13
Diluted earnings per common share	0.42		0.50		1.23		1.12

⁽¹⁾  Represents the excess carrying amount over the redemption price of the 8% Series A non-cumulative perpetual preferred stock redeemed in the first quarter of 2018.

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Fair Value of Investment Securities

Amortized cost and fair value of investment securities, excluding marketable equity securities and non-marketable FHLB and FRB stock, were as follows as of the dates indicated (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2018
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,098	$	—	$	(72	)	$	5,026
States and political subdivisions	338,927		11,686		(552		)	350,061
Residential mortgage-backed securities	1,225,978		1,594		(21,993		)	1,205,579
Commercial mortgage-backed securities	63,527		84		(187		)	63,424
Corporate bonds	23,179		—		(9		)	23,170
Total Available for Sale	1,656,709		13,364		(22,813		)	1,647,260
Held to Maturity
States and political subdivisions	884,576		18,512		(1,745		)	901,343
Residential mortgage-backed securities	38,460		400		—			38,860
Total Held to Maturity	923,036		18,912		(1,745		)	940,203
Total	$	2,579,745	$	32,276	$	(24,558	)	$	2,587,463
December 31, 2017
Available for Sale
U.S. Government sponsored agencies and enterprises	$	23,013	$	3	$	(9	)	$	23,007
States and political subdivisions	363,813		15,998		(486		)	379,325
Residential mortgage-backed securities	861,594		3,035		(11,930		)	852,699
Commercial mortgage-backed securities	71,554		612		(131		)	72,035
Corporate bonds	70,155		84		(42		)	70,197
Equity securities (1)	11,236		—		(173		)	11,063
Total Available for Sale	1,401,365		19,732		(12,771		)	1,408,326
Held to Maturity
States and political subdivisions	878,400		32,559		(447		)	910,512
Residential mortgage-backed securities	80,682		1,261		—			81,943
Total Held to Maturity	959,082		33,820		(447		)	992,455
Total	$	2,360,447	$	53,552	$	(13,218	)	$	2,400,781

⁽¹⁾  Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new guidance under ASC Topic 825 "Financial Instruments" on January 1, 2018.

Unrealized Losses on Investment Securities and the Fair Value of the Related Securities

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at June 30, 2018 were as follows (in thousands):

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,026	$	(72	)	$	—	$	—		$	5,026	$	(72	)
States and political subdivisions	13,492		(57		)	18,587		(495		)	32,079		(552		)
Residential mortgage-backed securities	713,248		(7,402		)	398,203		(14,591		)	1,111,451		(21,993		)
Commercial mortgage-backed securities	31,993		(127		)	11,263		(60		)	43,256		(187		)
Corporate bonds	23,170		(9		)	—		—			23,170		(9		)
Total Available for Sale	786,929		(7,667		)	428,053		(15,146		)	1,214,982		(22,813		)
Held to Maturity
States and political subdivisions	131,461		(1,191		)	14,546		(554		)	146,007		(1,745		)
Total	$	918,390	$	(8,858	)	$	442,599	$	(15,700	)	$	1,360,989	$	(24,558	)

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at December 31, 2017 were as follows (in thousands):

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Available for Sale
U.S. Government sponsored agencies and enterprises	$	5,111	$	(9	)	$	—	$	—		$	5,111	$	(9	)
States and political subdivisions	9,016		(29		)	18,754		(457		)	27,770		(486		)
Residential mortgage-backed securities	256,769		(1,853		)	407,224		(10,077		)	663,993		(11,930		)
Commercial mortgage-backed securities	19,483		(20		)	14,583		(111		)	34,066		(131		)
Corporate bonds	7,052		(8		)	9,963		(34		)	17,015		(42		)
Equity securities	11,063		(173		)	—		—			11,063		(173		)
Total Available for Sale	308,494		(2,092		)	450,524		(10,679		)	759,018		(12,771		)
Held to Maturity
States and political subdivisions	45,499		(257		)	12,561		(190		)	58,060		(447		)
Total	$	353,993	$	(2,349	)	$	463,085	$	(10,869	)	$	817,078	$	(13,218	)

Summary of Net Gains (Losses) on Investment Securities Available for Sale

Net gains (losses) recognized on investment securities were as follows (in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Realized gains	$	62		$	137	$	150		$	374
Realized losses	(148		)	—		(410		)	(6		)
Net (losses) gains	$	(86	)	$	137	$	(260	)	$	368

Amortized Cost and Fair Value of Investment Securities by Contractual Maturity

The amortized cost and fair value of investment securities as of June 30, 2018 by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.

	Amortized		Fair
(In thousands)	Cost		Value
Available for sale:
Due in one year or less	$	61,670	$	62,235
Due after one year through five years	124,424		128,078
Due after five years through ten years	40,076		40,532
Due after ten years	141,034		147,412
Residential and commercial mortgage-backed securities	1,289,505		1,269,003
	1,656,709		1,647,260
Held to maturity:
Due in one year or less	42,695		42,916
Due after one year through five years	175,308		180,895
Due after five years through ten years	224,040		229,732
Due after ten years	442,533		447,800
Residential mortgage-backed securities	38,460		38,860
	923,036		940,203
Total	$	2,579,745	$	2,587,463

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Loans (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Schedule of Composition of Loans

Loans consist of the following at (in thousands):

	June 30, 2018		December 31, 2017
Commercial loans	$	4,816,545	$	4,786,180
Commercial loans collateralized by assignment of lease payments	2,100,460		2,113,135
Commercial real estate	3,929,327		4,147,529
Residential real estate	1,352,625		1,432,458
Construction real estate	495,805		406,849
Indirect vehicle	749,983		667,928
Home equity	192,785		219,098
Other consumer loans	81,714		73,141
Total loans, excluding purchased credit-impaired loans	13,719,244		13,846,318
Purchased credit-impaired loans	101,001		119,744
Total loans	$	13,820,245	$	13,966,062

Contractual Aging of the Recorded Investment in Past Due Loans by Class of Loans

The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of June 30, 2018 and December 31, 2017 (in thousands):

	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total Past Due		Total
June 30, 2018
Commercial	$	4,808,606	$	116	$	217	$	7,606	$	7,939	$	4,816,545
Commercial collateralized by assignment of lease payments	2,069,443		16,560		10,769		3,688		31,017		2,100,460
Commercial real estate:
Health care	694,863		—		—		—		—		694,863
Industrial	857,560		764		—		3,424		4,188		861,748
Multifamily	549,083		529		—		—		529		549,612
Retail	489,135		—		—		835		835		489,970
Office	430,984		—		—		228		228		431,212
Other	900,604		552		86		680		1,318		901,922
Residential real estate	1,341,504		617		1,687		8,817		11,121		1,352,625
Construction real estate	495,805		—		—		—		—		495,805
Indirect vehicle	744,297		3,947		1,131		608		5,686		749,983
Home equity	186,479		1,187		794		4,325		6,306		192,785
Other consumer	81,541		91		43		39		173		81,714
Total loans, excluding purchased credit-impaired loans	13,649,904		24,363		14,727		30,250		69,340		13,719,244
Purchased credit-impaired loans	60,429		4,685		5,124		30,763		40,572		101,001
Total loans	$	13,710,333	$	29,048	$	19,851	$	61,013	$	109,912	$	13,820,245
Non-performing loan aging	$	30,509	$	1,103	$	6,663	$	30,250	$	38,016	$	68,525
December 31, 2017
Commercial	$	4,769,244	$	1,702	$	6,926	$	8,308	$	16,936	$	4,786,180
Commercial collateralized by assignment of lease payments	2,099,246		11,320		1,878		691		13,889		2,113,135
Commercial real estate:
Health care	710,722		—		—		—		—		710,722
Industrial	908,394		—		—		755		755		909,149
Multifamily	601,844		688		—		732		1,420		603,264
Retail	503,224		—		—		474		474		503,698
Office	453,960		—		956		1,454		2,410		456,370
Other	956,181		7,035		76		1,034		8,145		964,326
Residential real estate	1,410,473		12,359		1,907		7,719		21,985		1,432,458
Construction real estate	404,595		2,254		—		—		2,254		406,849
Indirect vehicle	661,028		4,905		1,083		912		6,900		667,928
Home equity	210,831		3,161		1,073		4,033		8,267		219,098
Other consumer	72,846		202		36		57		295		73,141
Total loans, excluding purchased credit-impaired loans	13,762,588		43,626		13,935		26,169		83,730		13,846,318
Purchased credit-impaired loans	63,937		8,749		3,997		43,061		55,807		119,744
Total loans	$	13,826,525	$	52,375	$	17,932	$	69,230	$	139,537	$	13,966,062
Non-performing loan aging	$	36,879	$	8,799	$	4,961	$	26,169	$	39,929	$	76,808

Recorded Investment in Non-accrual Loans and Loans Past Due Ninety Days or More and Still Accruing by Class of Loans

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing by class of loans, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018				December 31, 2017
			Loans past due				Loans past due
	Non-accrual		90 days or more and still accruing		Non-accrual		90 days or more and still accruing
Commercial	$	10,727	$	—	$	14,001	$	3,500
Commercial collateralized by assignment of lease payments	5,373		3,688		490		531
Commercial real estate:
Health care	—		—		—		—
Industrial	3,485		—		8,807		—
Multifamily	635		—		860		—
Office	557		—		2,772		—
Retail	835		—		590		—
Other	5,813		75		8,016		190
Residential real estate	19,103		201		18,374		1,210
Construction real estate	—		—		—		—
Indirect vehicle	3,444		7		3,019		81
Home equity	14,541		—		14,305		—
Other consumer	2		39		4		58
Total	$	64,515	$	4,010	$	71,238	$	5,570

Risk Category of Loans by Class of Loans

The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2018
Commercial	$	4,518,183	$	169,458	$	128,904	$	—	$	4,816,545
Commercial collateralized by assignment of lease payments	2,083,287		6,114		11,059		—		2,100,460
Commercial real estate:
Health care	610,505		7,149		77,209		—		694,863
Industrial	833,104		19,720		8,924		—		861,748
Multifamily	546,488		1,345		1,779		—		549,612
Retail	465,899		21,226		2,845		—		489,970
Office	422,682		4,735		3,795		—		431,212
Other	854,186		16,600		31,136		—		901,922
Construction real estate	490,270		—		5,535		—		495,805
Total	$	10,824,604	$	246,347	$	271,186	$	—	$	11,342,137
December 31, 2017
Commercial	$	4,535,111	$	147,232	$	103,837	$	—	$	4,786,180
Commercial collateralized by assignment of lease payments	2,095,668		7,527		9,940		—		2,113,135
Commercial real estate:
Health care	640,751		33,672		36,299		—		710,722
Industrial	885,524		12,411		11,214		—		909,149
Multifamily	595,818		146		7,300		—		603,264
Retail	492,830		8,326		2,542		—		503,698
Office	452,902		696		2,772		—		456,370
Other	891,703		37,682		34,941		—		964,326
Construction real estate	406,849		—		—		—		406,849
Total	$	10,997,156	$	247,692	$	208,845	$	—	$	11,453,693

Recorded Investment in Loan Classes Based on Payment Activity

The following table presents the recorded investment in those loan classes based on payment activity, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	Performing		Non-performing		Total
June 30, 2018
Residential real estate	$	1,333,321	$	19,304	$	1,352,625
Indirect vehicle	746,532		3,451		749,983
Home equity	178,244		14,541		192,785
Other consumer	81,673		41		81,714
Total	$	2,339,770	$	37,337	$	2,377,107
December 31, 2017
Residential real estate	$	1,412,874	$	19,584	$	1,432,458
Indirect vehicle	664,828		3,100		667,928
Home equity	204,793		14,305		219,098
Other consumer	73,079		62		73,141
Total	$	2,355,574	$	37,051	$	2,392,625

Loans Individually Evaluated for Impairment by Class of Loans

The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018
									Three Months Ended				Six Months Ended
	Unpaid Principal Balance		Recorded Investment		Partial Charge-offs		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	5,862	$	5,321	$	541	$	—	$	6,473	$	—	$	6,768	$	—
Commercial collateralized by assignment of lease payments	—		—		—		—		—		—		—		—
Commercial real estate:
Health care	—		—		—		—		—		—		—		—
Industrial	—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		1,653		52
Residential real estate	4,089		4,051		38		—		4,142		—		3,770		—
Construction real estate	—		—		—		—		—		—		—		—
Indirect vehicle	647		334		313		—		644		21		562		28
Home equity	79		79		—		—		—		—		—		—
Other consumer	—		—		—		—		—		—		—		—
With an allowance recorded:
Commercial	4,795		4,795		—		1,421		4,917		78		4,921		97
Commercial collateralized by assignment of lease payments	5,078		5,078		—		3,144		331		—		166		—
Commercial real estate:
Health care	—		—		—		—		—		—		539		28
Industrial	3,423		3,423		—		1,420		3,493		4		3,207		8
Multifamily	—		—		—		—		—		—		—		—
Retail	—		—		—		—		—		—		—		—
Office	—		—		—		—		—		—		—		—
Other	6,487		6,487		—		559		4,149		124		2,086		124
Residential real estate	20,461		18,603		1,858		1,729		18,605		31		18,956		32
Construction real estate	—		—		—		—		—		—		—		—
Indirect vehicle	—		—		—		—		—		—		—		—
Home equity	31,383		28,767		2,616		1,923		28,933		20		29,305		30
Other consumer	—		—		—		—		—		—		—		—
Total	$	82,304	$	76,938	$	5,366	$	10,196	$	71,687	$	278	$	71,933	$	399

	December 31, 2017
									Year Ended
	Unpaid Principal Balance		Recorded Investment		Partial Charge-offs		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	8,312	$	7,771	$	541	$	—	$	5,595	$	95
Commercial collateralized by assignment of lease payments	—		—		—		—		301		—
Commercial real estate:
Health care	—		—		—		—		—		—
Industrial	—		—		—		—		1,260		8
Multifamily	—		—		—		—		1,261		29
Retail	—		—		—		—		814		27
Office	527		527		—		—		1,426		18
Other	10,597		10,597		—		—		2,312		128
Residential real estate	1,950		1,912		38		—		483		—
Construction real estate	—		—		—		—		—		—
Indirect vehicle	408		202		206		—		411		26
Home equity	81		81		—		—		376		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	7,418		7,418		—		2,315		7,668		277
Commercial collateralized by assignment of lease payments	—		—		—		—		126		14
Commercial real estate:
Health care	—		—		—		—		—		—
Industrial	8,339		8,317		22		2,669		3,215		171
Multifamily	568		568		—		320		426		—
Retail	—		—		—		—		1,345		28
Office	2,293		2,277		16		752		636		4
Other	—		—		—		—		29		—
Residential real estate	21,380		19,014		2,366		2,158		17,616		25
Construction real estate	—		—		—		—		—		—
Indirect vehicle	—		—		—		—		—		—
Home equity	30,762		28,286		2,476		2,200		27,982		54
Other consumer	—		—		—		—		—		—
Total	$	92,635	$	86,970	$	5,665	$	10,414	$	73,282	$	904

Schedule of Loans That Have Been Restructured

The following table presents loans that were restructured during the three months ended June 30, 2018 (dollars in thousands):

	June 30, 2018
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Total	—	$	—	$	—	$	—
Non-Performing:
Residential real estate	8	$	935	$	935	$	152
Indirect vehicle	9	54		54		36
Home equity	2	76		76		5
Total	19	$	1,065	$	1,065	$	193

The following table presents loans that were restructured during the six months endedJune 30, 2018 (dollars in thousands):

	June 30, 2018
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Residential real estate	1	$	88	$	88	$	9
Total	1	$	88	$	88	$	9
Non-Performing:
Residential real estate	16	$	2,441	$	2,441	$	938
Indirect vehicle	20	120		120		38
Home equity	5	210		210		14
Total	41	$	2,771	$	2,771	$	990

The following table presents loans that were restructured during the three months ended June 30, 2017 (dollars in thousands):

	June 30, 2017
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Commercial	5	$	2,491	$	2,491	$	373
Commercial real estate:
Industrial	2	2,787		2,787		—
Office	1	549		549		—
Other	1	147		147		—
Residential real estate	3	$	493	$	493	$	86
Home equity	2	46		46		3
Total	14	$	6,513	$	6,513	$	462
Non-Performing:
Commercial	2	$	676	$	676	$	—
Commercial real estate:
Multifamily	3	290		290		—
Retail	1	906		906		—
Residential real estate	8	1,122		1,122		289
Indirect vehicle	8	77		77		25
Home equity	2	593		593		57
Total	24	$	3,664	$	3,664	$	371

The following table presents loans that were restructured during the six months endedJune 30, 2017 (dollars in thousands):

	June 30, 2017
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Commercial	5	$	2,491	$	2,491	$	373
Commercial real estate
Industrial	2	2,787		2,787		—
Office	1	549		549		—
Other	1	147		147		—
Residential real estate	6	902		902		135
Home equity	3	78		78		6
Total	18	$	6,954	$	6,954	$	514
Non-Performing:
Commercial	2	$	676	$	676	$	—
Commercial real estate:
Multifamily	3	290		290		—
Retail	1	906		906		—
Residential real estate	17	2,380		2,380		443
Indirect vehicle	11	97		97		29
Home equity	3	593		593		57
Total	37	$	4,942	$	4,942	$	529

Troubled Debt Restructuring Activity Rollforward

The following table presents the troubled debt restructurings activity during the six months endedJune 30, 2018 (in thousands):

	Performing			Non-performing
Beginning balance	$	28,554		$	30,836
Additions	88			2,771
Charge-offs	—			(130		)
Principal payments, net	(4,774		)	(5,364		)
Removals	(77		)	(8		)
Transfer to other real estate owned	—			—
Transfers in	2,382			513
Transfers out	(513		)	(2,382		)
Ending balance	$	25,660		$	26,236

Type of Financing Receivable Modifications and Restructuring

The following table presents the type of modification for loans that have been restructured during the six months endedJune 30, 2018 (in thousands):

	June 30, 2018
	Extended
	Maturity,				Delay in
	Amortization		Extended		Payments and/or
	and Reduction		Maturity and/or		Reduction of
	of Interest Rate		Amortization		Interest Rate		Total
Residential real estate	$	1,256	$	862	$	411	$	2,529
Indirect vehicle	—		—		120		120
Home equity	—		210		—		210
Total	$	1,256	$	1,072	$	531	$	2,859

Allowance Activity for Credit Losses, Balance in Allowance for Credit Losses and Recorded Investment in Loans by Portfolio Segment

The following table presents the activity in the allowance for credit losses, balance in allowance for credit losses and recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2018 and 2017 (in thousands):

	Commercial			Commercial collateralized by assignment of lease payments		Commercial real estate		Residential real estate			Construction real estate		Indirect vehicle		Home equity			Other consumer		Unfunded commitments		Total
June 30, 2018
Allowance for credit losses:
Three Months Ended
Beginning balance	$	45,551		$	12,993	$	65,798	$	6,376		$	19,803	$	4,350	$	4,346		$	2,495	$	1,678	$	163,390
Charge-offs	1,534			716		2,621		28			—		1,328		184			309		—		6,720
Recoveries	167			149		329		26			37		664		228			89		—		1,689
Provision	(3,866		)	669		1,885		(642		)	6,952		1,052		(248		)	307		110		6,219
Ending balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Six Months Ended
Beginning balance	$	46,267		$	13,007	$	63,429	$	7,012		$	15,501	$	4,728	$	5,296		$	2,470	$	1,698	$	159,408
Charge-offs	2,936			716		5,097		729			—		3,152		248			660		—		13,538
Recoveries	504			400		1,091		96			430		1,843		298			319		—		4,981
Provision	(3,517		)	404		5,968		(647		)	10,861		1,319		(1,204		)	453		90		13,727
Ending balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,421		$	3,144	$	1,979	$	1,729		$	—	$	—	$	1,923		$	—	$	616	$	10,812
Collectively evaluated for impairment	38,823			9,951		62,400		4,003			26,757		4,738		2,219			2,582		1,172		152,645
Acquired and accounted for under ASC 310-30 (1)	74			—		1,012		—			35		—		—			—		—		1,121
Total ending allowance balance	$	40,318		$	13,095	$	65,391	$	5,732		$	26,792	$	4,738	$	4,142		$	2,582	$	1,788	$	164,578
Loans:
Individually evaluated for impairment	$	10,116		$	5,078	$	9,910	$	22,654		$	—	$	334	$	28,846		$	—	$	—	$	76,938
Collectively evaluated for impairment	4,806,429			2,095,382		3,919,417		1,329,971			495,805		749,649		163,939			81,714		—		13,642,306
Acquired and accounted for under ASC 310-30 (1)	10,459			—		24,286		51,485			3,641		—		9,855			1,275		—		101,001
Total ending loans balance	$	4,827,004		$	2,100,460	$	3,953,613	$	1,404,110		$	499,446	$	749,983	$	202,640		$	82,989	$	—	$	13,820,245

	Commercial			Commercial collateralized  by assignment of lease payments			Commercial real estate		Residential real estate		Construction real estate		Indirect vehicle		Home equity			Other consumer		Unfunded commitments			Total
June 30, 2017
Allowance for credit losses:
Three Months Ended
Beginning balance	$	40,690		$	12,143		$	58,220	$	8,131	$	14,859	$	3,624	$	5,312		$	1,191	$	2,328		$	146,498
Charge-offs	700			—			262		270		—		930		261			498		—			2,921
Recoveries	1,339			249			362		58		47		565		292			109		—			3,021
Provision	2,454			373			4,927		330		357		704		206			412		(64		)	9,699
Ending balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Six Months Ended
Beginning balance	$	44,661		$	12,238		$	51,807	$	5,971	$	14,758	$	3,421	$	5,469		$	1,041	$	2,476		$	141,842
Charge-offs	868			—			1,347		360		—		2,341		434			944		—			6,294
Recoveries	2,849			712			880		586		159		1,217		575			338		—			7,316
Provision	(2,859		)	(185		)	11,907		2,052		346		1,666		(61		)	779		(212		)	13,433
Ending balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,076		$	—		$	724	$	1,839	$	—	$	—	$	2,940		$	—	$	516		$	7,095
Collectively evaluated for impairment	42,619			12,765			62,115		6,410		15,227		3,963		2,609			1,214		1,748			148,670
Acquired and accounted for under ASC 310-30 (1)	88			—			408		—		36		—		—			—		—			532
Total ending allowance balance	$	43,783		$	12,765		$	63,247	$	8,249	$	15,263	$	3,963	$	5,549		$	1,214	$	2,264		$	156,297
Loans:
Individually evaluated for impairment	$	11,167		$	1		$	13,820	$	16,956	$	—	$	144	$	29,019		$	—	$	—		$	71,107
Collectively evaluated for impairment	4,692,161			2,076,910			3,868,934		1,394,303		449,116		627,675		209,933			74,925		—			13,393,957
Acquired and accounted for under ASC 310-30 (1)	17,797			—			38,859		73,872		5,201		—		11,558			1,790		—			149,077
Total ending loans balance	$	4,721,125		$	2,076,911		$	3,921,613	$	1,485,131	$	454,317	$	627,819	$	250,510		$	76,715	$	—		$	13,614,141

⁽¹⁾  Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.”

Changes in the Accretable Yield for Purchased Credit-Impaired Loans

Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the three and six months endedJune 30, 2018 and 2017 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Balance at beginning of period	$	10,267		$	14,911		$	12,069		$	16,050
Purchases	—			—			—			43
Accretion	(2,223		)	(2,831		)	(4,634		)	(5,019		)
Other (1)	197			606			806			1,612
Balance at end of period	$	8,241		$	12,686		$	8,241		$	12,686

⁽¹⁾  Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC 310-30.

Carrying Amount of Loans Acquired Through a Business Combination by Loan Pool Type

The carrying amount of loans acquired through a business combination by loan pool type are as follows (in thousands):

June 30, 2018	Purchased Credit-Impaired Loans		Purchased Non-Credit-Impaired Loans		Total
Covered loans (1):
Consumer related	$	14,005	$	—	$	14,005
Non-covered loans:
Commercial loans	10,459		176,660		187,119
Commercial loans collateralized by assignment of lease payments	—		15,406		15,406
Commercial real estate	24,285		601,356		625,641
Construction real estate	3,641		2,758		6,399
Consumer related	5,029		231,229		236,258
Total non-covered loans	43,414		1,027,409		1,070,823
Total acquired	$	57,419	$	1,027,409	$	1,084,828

⁽¹⁾  Covered loans refer to loans covered under loss-sharing agreements with the FDIC. The remaining loss-share agreements expire between 2019 and 2020.

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Goodwill and Intangibles (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Amount of Goodwill

The following table presents the carrying amount of goodwill by segment for the six months endedJune 30, 2018 (in thousands):

	Banking		Leasing		Mortgage Banking			Total
Balance at beginning of period	$	959,285	$	40,640	$	3,623		$	1,003,548
Impairment	—		—		(3,623		)	(3,623		)
Balance at end of period	$	959,285	$	40,640	$	—		$	999,925

Changes in the Carrying Amount of Core Deposit and Client Relationship Intangibles

The following table presents the changes during the six months endedJune 30, 2018 in the carrying amount of core deposit and client relationship intangibles, and the gross carrying amount, accumulated amortization, and net book value as of June 30, 2018 (in thousands):

	June 30, 2018
Balance at beginning of period	$	54,766
Amortization expense	(3,798		)
Balance at end of period	$	50,968
Gross carrying amount	$	112,820
Accumulated amortization	(61,852		)
Net book value	$	50,968

Estimated Future Amortization Expense of Other Intangible Assets

The following presents the estimated future amortization expense of other intangible assets (in thousands):

Year ending December 31,	Amount
2018	$	3,653
2019	5,674
2020	5,022
2021	4,790
2022	3,806
Thereafter	28,023
	$	50,968

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Deposits (Tables)

6 Months Ended

Jun. 30, 2018

Banking and Thrift [Abstract]

Schedule of Composition of Deposits

The composition of deposits was as follows as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30,		December 31,
	2018		2017
Demand deposit accounts, non-interest bearing	$	6,347,208	$	6,381,512
NOW, money market, and interest bearing deposits	4,950,676		4,954,765
Savings accounts	1,181,078		1,167,810
Certificates of deposit, $250,000 or more	1,459,919		1,506,071
Other certificates of deposit	983,782		948,220
Total	$	14,922,663	$	14,958,378

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Short-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Short-Term Borrowings

Short-term borrowings were as follows as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	June 30, 2018				December 31, 2017
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
Customer repurchase agreements	0.55	%	$	244,462	0.27	%	$	232,789
Federal Home Loan Bank advances	2.13		400,000		1.31		625,000
Federal funds purchased	2.21		7,000		1.26		3,250
Line of credit	—		—		—		—
Total	1.53	%	$	651,462	1.03	%	$	861,039

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Long-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Borrowings

Long-term borrowings were as follows as of June 30, 2018 and December 31, 2017 (dollars in thousands):

	June 30, 2018				December 31, 2017
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
Federal Home Loan Bank advances	2.52	%	$	478,096	1.73	%	$	231,317
Notes payable	4.57		79,196		4.14		90,807
Subordinated notes, net of issuance costs (1)	4.00		173,000		4.00		173,034
Term note	—		—		3.31		10,000
Total	3.09	%	$	730,292	2.97	%	$	505,158

⁽¹⁾  The amount decreased from December 31, 2017 as a result of an increase in issuance costs due to adjustments for actual costs.

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Junior Subordinated Notes Issued to Capital Trusts (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Outstanding Junior Subordinated Notes and the Related Trust Preferred Securities Issued by Each Trust

The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of June 30, 2018 (in thousands). Subsequent to June 30, 2018, the Company redeemed all of the outstanding junior subordinated notes held by Coal City Capital Trust I, which concurrently redeemed all of its outstanding trust preferred securities, and the Company called for redemption all of the outstanding junior subordinated notes held by TAYC Capital Trust II, which will concurrently redeem all of its outstanding trust preferred securities. See Note 18. Subsequent Events.

	Coal City Capital Trust I		MB Financial Capital Trust II		MB Financial Capital Trust III		MB Financial Capital Trust IV
Junior Subordinated Notes:
Principal balance	$	25,774	$	36,083	$	10,310	$	20,619
Annual interest rate	3-mo LIBOR + 1.80%		3-mo LIBOR + 1.40%		3-mo LIBOR + 1.50%		3-mo LIBOR + 1.52%
Stated maturity date	September 1, 2028		September 15, 2035		September 23, 2036		September 15, 2036
Call date	September 1, 2008		December 15, 2010		September 23, 2011		September 15, 2011
Trust Preferred Securities:
Face Value	$	25,000	$	35,000	$	10,000	$	20,000
Annual distribution rate	3-mo LIBOR + 1.80%		3-mo LIBOR + 1.40%		3-mo LIBOR + 1.50%		3-mo LIBOR + 1.52%
Issuance date	July 1998		August 2005		July 2006		August 2006
Distribution dates (1)	Quarterly		Quarterly		Quarterly		Quarterly

	MB Financial Capital Trust V		MB Financial Capital Trust VI		FOBB Statutory Trust III (2)		TAYC Capital Trust II (3)
Junior Subordinated Notes:
Principal balance	$	30,928	$	23,196	$	5,155	$	41,238
Annual interest rate	3-mo LIBOR + 1.30%		3-mo LIBOR + 1.30%		3-mo LIBOR + 2.80%		3-mo LIBOR + 2.68%
Stated maturity date	December 15, 2037		October 30, 2037		January 23, 2034		June 17, 2034
Call date	December 15, 2012		October 30, 2012		January 23, 2009		June 17, 2009
Trust Preferred Securities:
Face Value	$	30,000	$	22,500	$	5,000	$	40,000
Annual distribution rate	3-mo LIBOR + 1.30%		3-mo LIBOR + 1.30%		3-mo LIBOR + 2.80%		3-mo LIBOR + 2.68%
Issuance date	September 2007		October 2007		December 2003		June 2004
Distribution dates (1)	Quarterly		Quarterly		Quarterly		Quarterly

	American Chartered Statutory Trust II (4)
Junior Subordinated Notes:
Principal balance	$	10,310
Annual interest rate	3-mo LIBOR + 2.75%
Stated maturity date	October 7, 2034
Call date	October 7, 2009
Trust Preferred Securities:
Face Value	$	10,000
Annual distribution rate	3-mo LIBOR + 2.75%
Issuance date	August 2004
Distribution dates (1)	Quarterly

⁽¹⁾  All distributions are cumulative and paid in cash.

⁽²⁾  FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBB”) prior to the Company's acquisition of FOBB in 2006, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition.

⁽³⁾  TAYC Capital Trust II was established by Taylor Capital Group, Inc. (“Taylor Capital”) prior to the Company's acquisition of Taylor Capital in 2014, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a remaining discount of $6.2 million at June 30, 2018.

⁽⁴⁾  American Chartered Statutory Trust II was established by American Chartered prior to the Company's acquisition of American Chartered in August 2016, and the junior subordinated notes issued by American Chartered to American Chartered Statutory Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with American Chartered Statutory Trust II do not include acquisition accounting adjustments to such amounts, which in each case resulted in a remaining discount of $2.6 million at June 30, 2018.

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Outstanding Financial Instruments, Contractual Amounts of Off-Balance Sheet Credit Risk

At June 30, 2018 and December 31, 2017, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands):

	Contractual Amount
	June 30, 2018		December 31, 2017
Commitments to extend credit:
Home equity lines	$	185,528	$	203,922
Other commitments	4,084,835		4,073,044
Letters of credit:
Standby	165,960		161,014
Commercial	756		2,248

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2018
Financial assets
Securities available for sale:
U.S Government sponsored agencies and enterprises	$	5,026	$	—	$	5,026	$	—
States and political subdivisions	350,061		—		349,732		329
Residential mortgage-backed securities	1,205,579		—		1,205,566		13
Commercial mortgage-backed securities	63,424		—		63,424		—
Corporate bonds	23,170		—		23,170		—
Marketable equity securities	10,922		10,922		—		—
Loans held for sale	423,367		—		423,367		—
Loans	36,347		—		36,347		—
Mortgage servicing rights	296,629		—		—		296,629
Assets held in trust for deferred compensation	24,300		24,300		—		—
Derivative financial instruments	52,418		482		51,659		277
Financial liabilities
Other liabilities (1)	24,300		24,300		—		—
Derivative financial instruments	52,572		1,217		51,355		—
December 31, 2017
Financial assets
Securities available for sale:
U.S. Government sponsored agencies and enterprises	$	23,007	$	—	$	23,007	$	—
States and political subdivisions	379,325		—		378,996		329
Residential mortgage-backed securities	852,699		—		852,665		34
Commercial mortgage-backed securities	72,035		—		72,035		—
Corporate bonds	70,197		—		70,197		—
Equity securities	11,063		11,063		—		—
Loans held for sale	548,578		—		548,578		—
Loans	40,531		—		40,531		—
Mortgage servicing rights	276,279		—		—		276,279
Assets held in trust for deferred compensation	21,410		21,410		—		—
Derivative financial instruments	31,499		389		29,539		1,571
Financial liabilities
Other liabilities (1)	21,410		21,410		—		—
Derivative financial instruments	40,296		1,072		39,224		—

⁽¹⁾  Liabilities associated with assets held in trust for deferred compensation

Summary of Financial Assets Measured at Fair Value on a Recurring Basis, Unobservable Inputs Used

The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a recurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands):

	Fair Value at
	June 30, 2018		Valuation Technique	Unobservable Input	Range
States and political subdivisions	$	329	Discounted cash flows	Credit assumption	40% - 45% Loss
Residential mortgage-backed securities	13		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	296,629		Discounted cash flows	CPR	6.30% - 6.71%
				Discount rate	9.53 - 11.07
				Maturity (months)	326 - 358
				Delinquency rate	2.19 - 4.88
				Costs to service	$ 67 - $ 227
				Additive delinquent costs to service	$ 175 - $ 1,000
Derivative financial instruments (mortgage	277		Sales cash flows	Expected closing ratio	70% - 95%
interest rate lock commitments)				Expected delivery price	98.12 bps - 106.46 bps

	Fair Value at
	December 31, 2017		Valuation Technique	Unobservable Input	Range
States and political subdivisions	$	329	Discounted cash flows	Credit assumption	40-45% Loss
Residential mortgage-backed securities	34		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	276,279		Discounted cash flows	CPR	6.7% - 7.8%
				Discount rate	9.53 - 11.06
				Maturity (months)	324 - 358
				Delinquency rate	2.42 - 5.30
				Costs to service	$ 67 - $ 227
				Additive delinquent costs to service	$ 175 - $ 1,000
Derivative financial instruments (mortgage	1,571		Sales cash flows	Expected closing ratio	70% - 95%
interest rate lock commitments)				Expected delivery price	97.38 bps - 106.87 bps

The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands):

	Fair Value at		Valuation
	June 30, 2018		Technique	Unobservable Input	Range
Impaired loans	$	62,089	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	14,420		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

	Fair Value at		Valuation
	December 31, 2017		Technique	Unobservable Input	Range
Impaired loans	$	60,569	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	15,113		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets

Key economic assumptions used in the measuring of the fair value of the mortgage servicing rights and the sensitivity of the fair value to immediate adverse changes in those assumptions at June 30, 2018 are presented in the following table. This table does not take into account the derivatives used to economically hedge the mortgage servicing rights.

(dollars in thousands, except for weighted average cost to service)	June 30, 2018
Weighted average CPR	6.49		%
Impact on fair value of 10% adverse change	$	(8,581	)
Impact on fair value of 20% adverse change	(16,741		)
Weighted average discount rate	9.83		%
Impact on fair value of 10% adverse change	$	(12,630	)
Impact on fair value of 20% adverse change	(24,245		)
Weighted average delinquency rate	4.65		%
Impact on fair value of 10% adverse change	$	(3,657	)
Impact on fair value of 20% adverse change	(6,023		)
Weighted average costs to service	$	91.39
Impact on fair value of 10% adverse change	(5,534		)
Impact on fair value of 20% adverse change	(11,067		)

Financial Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents additional information about financial assets measured at fair value on a recurring basis for which the Company used significant unobservable inputs (Level 3):

	Six Months Ended
	June 30,
	2018			2017			2018			2017			2018			2017
(in thousands)	Investment Securities						Mortgage Servicing Rights						Derivatives
Balance, beginning of period	$	363		$	544		$	276,279		$	238,011		$	1,571		$	3,160
Purchases	—			—			135			786			—			—
Originations	—			—			25,041			27,568			—			—
Included in earnings	—			—			(4,826		)	(16,677		)	(1,294		)	(461		)
Principal payments	(21		)	(82		)	—			—			—			—
Sales	—			—			—			—			—			—
Balance, ending of period	$	342		$	462		$	296,629		$	249,688		$	277		$	2,699

Assets Measured at Fair Value on a Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017 are included in the table below (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2018
Financial assets:
Impaired loans	$	62,089	$	—	$	—	$	62,089
Non-financial assets:
Foreclosed assets	14,420		—		—		14,420
December 31, 2017
Financial assets:
Impaired loans	$	60,569	$	—	$	—	$	60,569
Non-financial assets:
Foreclosed assets	15,113		—		—		15,113

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments are as follows (in thousands):

	June 30, 2018
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	$	373,448	$	373,448	$	373,448	$	—	$	—
Interest earning deposits with banks	119,672		119,672		119,672		—		—
Investment securities available for sale	1,647,260		1,647,260		—		1,646,918		342
Investment securities held to maturity	923,036		940,203		—		940,203		—
Marketable equity securities	10,922		10,922		10,922		—		—
Non-marketable securities - FHLB and FRB stock	115,453		115,453		—		—		115,453
Loans held for sale	423,367		423,367		—		423,367		—
Loans, net	13,657,455		13,728,529		—		36,347		13,692,182
Accrued interest receivable	65,129		65,129		65,129		—		—
Derivative financial instruments	52,418		52,418		482		51,659		277
Financial Liabilities:
Non-interest bearing deposits	$	6,347,208	$	6,347,208	$	6,347,208	$	—	$	—
Interest bearing deposits	8,575,455		8,563,444		—		—		8,563,444
Short-term borrowings	651,462		651,328		—		—		651,328
Long-term borrowings	730,292		731,194		—		—		731,194
Junior subordinated notes issued to capital trusts	194,450		163,817		—		—		163,817
Accrued interest payable	7,058		7,058		7,058		—		—
Derivative financial instruments	52,572		52,572		1,217		51,355		—

	December 31, 2017
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	$	397,880	$	397,880	$	397,880	$	—	$	—
Interest earning deposits with banks	181,341		181,341		181,341		—		—
Investment securities available for sale	1,408,326		1,408,326		11,063		1,396,900		363
Investment securities held to maturity	959,082		992,455		—		992,455		—
Non-marketable securities - FHLB and FRB stock	114,111		114,111		—		—		114,111
Loans held for sale	548,578		548,578		—		548,578		—
Loans, net	13,808,352		13,988,392		—		40,531		13,947,861
Accrued interest receivable	63,589		63,589		63,589		—		—
Derivative financial instruments	31,499		31,499		389		29,539		1,571
Financial Liabilities:
Non-interest bearing deposits	$	6,381,512	$	6,381,512	$	6,381,512	$	—	$	—
Interest bearing deposits	8,576,866		8,569,368		—		—		8,569,368
Short-term borrowings	861,039		860,676		—		—		860,676
Long-term borrowings	505,158		513,725		—		—		513,725
Junior subordinated notes issued to capital trusts	211,494		170,965		—		—		170,965
Accrued interest payable	6,458		6,458		6,458		—		—
Derivative financial instruments	40,296		40,296		1,072		39,224		—

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Stock Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-Based Payment Plans

The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Total compensation expense for share-based payment plans during the period	$	4,695	$	4,443	$	9,146	$	8,924
Amount of related income tax benefit recognized in income (1)	2,599		1,916		3,953		6,338

⁽¹⁾ Includes tax benefits recorded for the vesting of restricted shares and exercise of options.

Summary of Changes in Stock Options

The following table summarizes changes in stock options for the six months endedJune 30, 2018:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of December 31, 2017	1,721,978		$	29.10	5.19
Granted	160,644		41.14
Exercised	(380,567	)	26.39
Expired	(1,092	)	39.28
Forfeited or cancelled	(9,411	)	28.93
Options outstanding as of June 30, 2018	1,491,552		$	31.08	6.11	$	23,303
Options exercisable as of June 30, 2018	989,220		$	28.19	4.99	$	18,313

Assumptions Used for Options Granted

 The following assumptions were used for options granted during the six months endedJune 30, 2018:

	June 30, 2018
Risk-free interest rate	2.80		%
Expected volatility of Company’s stock	26.13		%
Expected dividend yield	2.06		%
Expected life of options	5.9 years
Weighted average fair value per option of options granted during the year	$	9.65

Summary of Changes in Restricted Shares and Units

The following is a summary of changes in restricted shares and units for the six months endedJune 30, 2018:

	Number of Shares and Units		Weighted Average Grant Date Fair Value
Shares and units outstanding at December 31, 2017	973,201		$	37.03
Granted	414,895		41.45
Vested	(303,774	)	34.98
Forfeited or cancelled	(88,806	)	34.86
Shares and units outstanding at June 30, 2018	995,516		39.69

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Financial Instruments

The Company’s derivative financial instruments are summarized below as of June 30, 2018 and December 31, 2017 (in thousands):

	Asset Derivatives								Liability Derivatives
	June 30, 2018				December 31, 2017				June 30, 2018					December 31, 2017
	Notional		Estimated		Notional		Estimated		Notional		Estimated			Notional		Estimated
	Amount		Fair Value		Amount		Fair Value		Amount		Fair Value			Amount		Fair Value
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts (1)	$	—	$	—	$	—	$	—	$	32	$	(1	)	$	58	$	(1	)
Stand-alone derivative instruments: (2)
Interest rate swap contracts	1,732,420		34,477		1,563,109		21,217		1,732,420		(34,477		)	1,563,109		(21,217		)
Interest rate options contracts	510,228		3,818		372,927		1,887		510,157		(3,818		)	372,927		(1,887		)
Foreign exchange contracts	64,661		2,309		40,713		1,934		53,842		(2,006		)	34,029		(1,759		)
Spot foreign exchange contracts	10,135		18		1,424		23		11,823		(23		)	24		—
Mortgage related derivatives:
Interest rate swap contracts	270,000		10,983		458,000		4,479		320,000		(11,031		)	1,008,000		(14,360		)
Interest rate swaptions contracts	240,000		54		—		—		—		—			—		—
Treasury futures contracts	20,000		66		28,000		39		32,500		(105		)	30,000		(222		)
TBA mortgage securities	50,000		359		15,000		16		—		—			100,000		(63		)
Forward loan sale commitments	36,000		57		259,000		333		298,700		(1,111		)	483,500		(787		)
Interest rate lock commitments	66,093		277		404,557		1,571		—		—			—		—
Total stand-alone derivative instruments	2,999,537		52,418		3,142,730		31,499		2,959,442		(52,571		)	3,591,589		(40,295		)
Total	$	2,999,537	$	52,418	$	3,142,730	$	31,499	$	2,959,474	$	(52,572	)	$	3,591,647	$	(40,296	)

⁽¹⁾ Derivative instruments designated to hedge fixed-rate commercial real estate loans.

⁽²⁾ These portfolio swaps are not designated as hedging instruments under ASC Topic 815.

Schedule of the Amounts Included in Consolidated Statements of Operations Related to Derivative Financial Instruments

Amounts included in other operating income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts	$	1		$	1		$	1		$	2
Stand-alone derivative instruments:
Interest rate swap contracts	1,913			1,624			3,628			3,473
Interest rate options contracts	—			—			—			—
Foreign exchange contracts	212			197			255			260
Spot foreign exchange contracts	884			729			1,617			1,407
Mortgage related derivatives	(872		)	(301		)	(1,453		)	(10,442		)
Total stand-alone derivative instruments	2,137			2,249			4,047			(5,302		)
Total	$	2,138		$	2,250		$	4,048		$	(5,300	)

Schedule of Financial Instruments Eligible for Offset In the Consolidated Balance Sheet

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of June 30, 2018 is summarized below (in thousands):

	Financial Assets						Financial Liabilities
	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized		Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
Derivatives:
Interest rate swap contracts, caps and floors	$	33,823	$	—	$	33,823	$	4,649	$	—	$	4,649
Foreign exchange contracts	1,338		—		1,338		966		—		966
Mortgage related derivatives	11,518		—		11,518		12,248		—		12,248
Total derivatives	46,679		—		46,679		17,863		—		17,863
Repurchase agreements	—		—		—		244,462		—		244,462
Total	$	46,679	$	—	$	46,679	$	262,325	$	—	$	262,325

	Financial Assets										Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral			Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	16,943	$	(11,030	)	$	—		$	5,913	$	11,030	$	(11,030	)	$	—		$	—
Counterparty B	9,885		(2,262		)	—			7,623		2,262		(2,262		)	—			—
Counterparty C	3,253		(492		)	(2,761		)	—		492		(492		)	—			—
Other counterparties	16,598		(531		)	(3,434		)	12,633		4,079		(531		)	(690		)	2,858
Total derivatives	46,679		(14,315		)	(6,195		)	26,169		17,863		(14,315		)	(690		)	2,858
Repurchase agreements	—		—			—			—		244,462		—			(244,462		)	—
Total	$	46,679	$	(14,315	)	$	(6,195	)	$	26,169	$	262,325	$	(14,315	)	$	(245,152	)	$	2,858

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2017 is summarized below (in thousands):

	Financial Assets						Financial Liabilities
	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized		Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
Derivatives:
Interest rate swap contracts, caps and floors	$	11,659	$	—	$	11,659	$	11,562	$	—	$	11,562
Foreign exchange contracts	1,013		—		1,013		953		—		953
Mortgage related derivatives	4,868		—		4,868		15,432		—		15,432
Total derivatives	17,540		—		17,540		27,947		—		27,947
Repurchase agreements	—		—		—		232,789		—		232,789
Total	$	17,540	$	—	$	17,540	$	260,736	$	—	$	260,736

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	6,068	$	(6,068	)	$	—	$	—	$	13,807	$	(6,068	)	$	(7,739	)	$	—
Counterparty B	3,261		(3,261		)	—		—		5,595		(3,261		)	(2,334		)	—
Counterparty C	5,285		(3,640		)	—		1,645		3,640		(3,640		)	—			—
Other counterparties	2,926		(1,750		)	—		1,176		4,905		(1,750		)	(3,150		)	5
Total derivatives	17,540		(14,719		)	—		2,821		27,947		(14,719		)	(13,223		)	5
Repurchase agreements	—		—			—		—		232,789		—			(232,789		)	—
Total	$	17,540	$	(14,719	)	$	—	$	2,821	$	260,736	$	(14,719	)	$	(246,012	)	$	5

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Operating Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Summary Financial Information for the Reportable Segments

The following tables present summary financial information for the reportable segments (in thousands):

	Banking		Leasing		Mortgage Banking			Consolidated
Three months ended June 30, 2018
Net interest income	$	146,614	$	2,349	$	10,106		$	159,069
Provision for credit losses	5,746		500		(27		)	6,219
Non-interest income	46,716		22,651		18,939			88,306
Non-interest expense (1)	124,682		15,212		53,098			192,992
Income tax expense	15,009		1,052		(6,430		)	9,631
Net income	$	47,893	$	8,236	$	(17,596	)	$	38,533
Total assets	$	16,581,205	$	1,354,940	$	2,030,412		$	19,966,557
Three months ended June 30, 2017
Net interest income	$	135,982	$	2,345	$	10,667		$	148,994
Provision for credit losses	8,890		410		399			9,699
Non-interest income	43,491		18,180		29,499			91,170
Non-interest expense (1)	117,022		13,436		35,754			166,212
Income tax expense	15,662		2,525		1,600			19,787
Net income	$	37,899	$	4,154	$	2,413		$	44,466
Total assets	$	16,320,111	$	1,275,386	$	2,369,560		$	19,965,057

⁽¹⁾  Includes merger related and repositioning expenses of $5.5 million and $19.5 million in the Banking and Mortgage Banking Segment, respectively, for the three months ended June 30, 2018 and $7.2 million in the Banking Segment for the three months ended June 30, 2017.

	Banking		Leasing		Mortgage Banking			Consolidated
Six months ended June 30, 2018
Net interest income	$	287,085	$	4,831	$	20,534		$	312,450
Provision for credit losses	13,325		476		(74		)	13,727
Non-interest income	89,808		47,507		43,793			181,108
Non-interest expense (1)	240,510		30,708		89,660			360,878
Income tax expense	28,617		1,808		(6,762		)	23,663
Net income	$	94,441	$	19,346	$	(18,497	)	$	95,290
Total assets	$	16,581,205	$	1,354,940	$	2,030,412		$	19,966,557
Six months ended June 30, 2017
Net interest income	$	267,431	$	4,614	$	19,992		$	292,037
Provision for credit losses	12,417		275		741			13,433
Non-interest income	86,699		39,643		57,278			183,620
Non-interest expense (1)	225,538		27,280		69,736			322,554
Income tax expense	31,322		6,644		2,701			40,667
Net income	$	84,853	$	10,058	$	4,092		$	99,003
Total assets	$	16,320,111	$	1,275,386	$	2,369,560		$	19,965,057

⁽¹⁾  Includes merger related and repositioning expenses of $5.5 million and $20.1 million in the Banking and Mortgage Banking Segment, respectively, for the six months endedJune 30, 2018 and $7.4 million in the Banking Segment for the six months endedJune 30, 2017.

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New Authoritative Accounting Guidance (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Retained earnings	$ 1,127,814		$ 1,065,303
Cumulative effect of accounting changes			(297)
Accumulated Other Comprehensive Income (Loss), Net of Tax
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Cumulative effect of accounting changes			907
Retained Earnings
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Cumulative effect of accounting changes			(1,204)
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance In Effect Before And After Topic 606
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Retained earnings			$ (683)
Accounting Standards Update, 2016-01 | Retained Earnings And Accumulated Other Comprehensive Income
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Cumulative effect of accounting changes		$ 385
Accounting Standards Update, 2016-01 | Accumulated Other Comprehensive Income (Loss), Net of Tax
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Cumulative effect of accounting changes		(729)
Accounting Standards Update, 2016-01 | Retained Earnings
Accounting Changes and Prior Period Adjustments Restatement [Line Items]
Cumulative effect of accounting changes		$ 1,200

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 38,533		$ 44,466	$ 95,290	$ 99,003
Less: preferred stock dividends	3,000		2,002	6,100	4,005
Plus: return from preferred stockholders due to redemption	0		0	15,280	0
Net income available to common stockholders	35,533		42,464	104,470	94,998
Plus: preferred stock dividends on convertible preferred stock	0		2	0	5
Earnings allocated to common stockholders for diluted earnings per common share	$ 35,532		$ 42,465	$ 104,467	$ 95,001
Weighted average shares outstanding for basic earnings per common share (in shares)	84,253,966		83,842,963	84,160,344	83,753,195
Dilutive effect of convertible preferred stock (in shares)	0		7,134	0	7,228
Total dilutive effect of equity awards and convertible preferred stock (in shares)	997,844		924,451	914,282	1,020,076
Weighted average shares outstanding for diluted earnings per common share (in shares)	85,251,810		84,767,414	85,074,626	84,773,271
Basic earnings per common share (in dollars per share)	$ 0.42		$ 0.51	$ 1.24	$ 1.13
Diluted earnings per common share (in dollars per share)	$ 0.42		$ 0.50	$ 1.23	$ 1.12
Stock options
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive effect of stock options and restricted shares/units (in shares)	553,999		554,314	530,892	595,415
Restricted shares and units
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive effect of stock options and restricted shares/units (in shares)	443,845		363,003	383,390	417,433
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributed earnings allocated to common stock	$ 20,472		$ 17,829	$ 40,755	$ 33,960
Undistributed earnings	18,061		26,637	54,535	65,043
Net income	38,533		44,466	95,290	99,003
Net income available to common stockholders	$ 35,533		$ 42,464	$ 104,470	$ 94,998
Weighted average shares outstanding for basic earnings per common share (in shares)	84,253,966		83,842,963	84,160,344	83,753,195
Weighted average shares outstanding for diluted earnings per common share (in shares)	85,251,810		84,767,414	85,074,626	84,773,271
Participating Securities
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Less: earnings allocated to participating securities	$ 1		$ 1	$ 3	$ 2
Series A Preferred Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Preferred stock, dividend rate (percent)		8.00%		8.00%		8.00%

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Investment Securities - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Available for Sale
Amortized Cost	$ 1,656,709
Gross Unrealized Gains	13,364
Gross Unrealized Losses	(22,813)
Fair Value	1,647,260
Amortized Cost	1,656,709	$ 1,401,365
Gross Unrealized Gains		19,732
Gross Unrealized Losses		(12,771)
Fair Value	1,647,260	1,408,326
Held to Maturity
Amortized Cost	923,036	959,082
Gross Unrealized Gains	18,912	33,820
Gross Unrealized Losses	(1,745)	(447)
Fair Value	940,203	992,455
Total Available for Sale and Held to Maturity Investment Securities
Amortized Cost	2,579,745	2,360,447
Gross Unrealized Gains	32,276	53,552
Gross Unrealized Losses	(24,558)	(13,218)
Fair Value	2,587,463	2,400,781
U.S. Government sponsored agencies and enterprises
Available for Sale
Amortized Cost	5,098
Gross Unrealized Gains	0
Gross Unrealized Losses	(72)
Fair Value	5,026
Amortized Cost		23,013
Gross Unrealized Gains		3
Gross Unrealized Losses		(9)
Fair Value		23,007
States and political subdivisions
Available for Sale
Amortized Cost	338,927
Gross Unrealized Gains	11,686
Gross Unrealized Losses	(552)
Fair Value	350,061
Amortized Cost		363,813
Gross Unrealized Gains		15,998
Gross Unrealized Losses		(486)
Fair Value		379,325
Held to Maturity
Amortized Cost	884,576	878,400
Gross Unrealized Gains	18,512	32,559
Gross Unrealized Losses	(1,745)	(447)
Fair Value	$ 901,343	910,512
Total Available for Sale and Held to Maturity Investment Securities
Percentage of securities consisting general obligation issues	95.00%
Percentage of securities insured	27.00%
States and political subdivisions | State of Illinois | Securities Portfolio
Total Available for Sale and Held to Maturity Investment Securities
Percentage of investments issued by states and political subdivisions that were within the state of Illinois	20.00%
Residential mortgage-backed securities
Available for Sale
Amortized Cost	$ 1,225,978
Gross Unrealized Gains	1,594
Gross Unrealized Losses	(21,993)
Fair Value	1,205,579
Amortized Cost		861,594
Gross Unrealized Gains		3,035
Gross Unrealized Losses		(11,930)
Fair Value		852,699
Held to Maturity
Amortized Cost	38,460	80,682
Gross Unrealized Gains	400	1,261
Gross Unrealized Losses	0	0
Fair Value	38,860	81,943
Commercial mortgage-backed securities
Available for Sale
Amortized Cost	63,527
Gross Unrealized Gains	84
Gross Unrealized Losses	(187)
Fair Value	63,424
Amortized Cost		71,554
Gross Unrealized Gains		612
Gross Unrealized Losses		(131)
Fair Value		72,035
Corporate bonds
Available for Sale
Amortized Cost	23,179
Gross Unrealized Gains	0
Gross Unrealized Losses	(9)
Fair Value	$ 23,170
Amortized Cost		70,155
Gross Unrealized Gains		84
Gross Unrealized Losses		(42)
Fair Value		70,197
Equity securities
Available for Sale
Amortized Cost		11,236
Gross Unrealized Gains		0
Gross Unrealized Losses		(173)
Fair Value		$ 11,063

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Investment Securities - Unrealized Losses on Investment Securities and Fair Value of Related Securities (Details) $ in Thousands	Jun. 30, 2018 USD ($) Security_Position	Dec. 31, 2017 USD ($) Security_Position
Available for Sale
Less Than 12 Months, Fair Value	$ 786,929
Less Thank 12 Months, Fair Value		$ 308,494
Less Than 12 Months, Unrealized Losses	(7,667)
Less Than 12 Months, Unrealized Losses		(2,092)
12 Months or More, Fair Value	428,053
12 Months or More, Fair Value		450,524
12 Months or More, Unrealized Losses	(15,146)
12 Months or More, Unrealized Losses		(10,679)
Total Fair Value	1,214,982
Total Fair Value		759,018
Total Unrealized Losses	(22,813)
Total Unrealized Losses		(12,771)
Total
Less Than 12 Months, Fair Value	918,390	353,993
Less Than 12 Months, Unrealized Losses	(8,858)	(2,349)
12 Months or More, Fair Value	442,599	463,085
12 Months or More, Unrealized Losses	(15,700)	(10,869)
Total Fair Value	1,360,989	817,078
Total Unrealized Losses	$ (24,558)	$ (13,218)
Number of security positions in the investment portfolio in an unrealized loss position | Security_Position	626	471
U.S. Government sponsored agencies and enterprises
Available for Sale
Less Than 12 Months, Fair Value	$ 5,026
Less Thank 12 Months, Fair Value		$ 5,111
Less Than 12 Months, Unrealized Losses	(72)
Less Than 12 Months, Unrealized Losses		(9)
12 Months or More, Fair Value	0
12 Months or More, Fair Value		0
12 Months or More, Unrealized Losses	0
12 Months or More, Unrealized Losses		0
Total Fair Value	5,026
Total Fair Value		5,111
Total Unrealized Losses	(72)
Total Unrealized Losses		(9)
States and political subdivisions
Available for Sale
Less Than 12 Months, Fair Value	13,492
Less Thank 12 Months, Fair Value		9,016
Less Than 12 Months, Unrealized Losses	(57)
Less Than 12 Months, Unrealized Losses		(29)
12 Months or More, Fair Value	18,587
12 Months or More, Fair Value		18,754
12 Months or More, Unrealized Losses	(495)
12 Months or More, Unrealized Losses		(457)
Total Fair Value	32,079
Total Fair Value		27,770
Total Unrealized Losses	(552)
Total Unrealized Losses		(486)
Held to Maturity
Less Than 12 Months, Fair Value	131,461	45,499
Less Than 12 Months, Unrealized Losses	(1,191)	(257)
12 Months or More, Fair Value	14,546	12,561
12 Months or More, Unrealized Losses	(554)	(190)
Total Fair Value	146,007	58,060
Total Unrealized Losses	(1,745)	(447)
Residential mortgage-backed securities
Available for Sale
Less Than 12 Months, Fair Value	713,248
Less Thank 12 Months, Fair Value		256,769
Less Than 12 Months, Unrealized Losses	(7,402)
Less Than 12 Months, Unrealized Losses		(1,853)
12 Months or More, Fair Value	398,203
12 Months or More, Fair Value		407,224
12 Months or More, Unrealized Losses	(14,591)
12 Months or More, Unrealized Losses		(10,077)
Total Fair Value	1,111,451
Total Fair Value		663,993
Total Unrealized Losses	(21,993)
Total Unrealized Losses		(11,930)
Commercial mortgage-backed securities
Available for Sale
Less Than 12 Months, Fair Value	31,993
Less Thank 12 Months, Fair Value		19,483
Less Than 12 Months, Unrealized Losses	(127)
Less Than 12 Months, Unrealized Losses		(20)
12 Months or More, Fair Value	11,263
12 Months or More, Fair Value		14,583
12 Months or More, Unrealized Losses	(60)
12 Months or More, Unrealized Losses		(111)
Total Fair Value	43,256
Total Fair Value		34,066
Total Unrealized Losses	(187)
Total Unrealized Losses		(131)
Corporate bonds
Available for Sale
Less Than 12 Months, Fair Value	23,170
Less Thank 12 Months, Fair Value		7,052
Less Than 12 Months, Unrealized Losses	(9)
Less Than 12 Months, Unrealized Losses		(8)
12 Months or More, Fair Value	0
12 Months or More, Fair Value		9,963
12 Months or More, Unrealized Losses	0
12 Months or More, Unrealized Losses		(34)
Total Fair Value	23,170
Total Fair Value		17,015
Total Unrealized Losses	$ (9)
Total Unrealized Losses		(42)
Equity securities
Available for Sale
Less Thank 12 Months, Fair Value		11,063
Less Than 12 Months, Unrealized Losses		(173)
12 Months or More, Fair Value		0
12 Months or More, Unrealized Losses		0
Total Fair Value		11,063
Total Unrealized Losses		$ (173)

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Investment Securities - Net Gains (Losses) Recognized and Amortized Cost and Fair Value by Contractual Maturity of Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Realized gains	$ 62		$ 137	$ 150	$ 374
Realized losses	(148)		0	(410)	(6)
Net (losses) gains	(86)		$ 137	(260)	$ 368
Amortized Cost, Available for sale
Due in one year or less	61,670			61,670
Due after one year through five years	124,424			124,424
Due after five years through ten years	40,076			40,076
Due after ten years	141,034			141,034
Amortized Cost	1,656,709			1,656,709		$ 1,401,365
Fair Value, Available for sale
Due in one year or less	62,235			62,235
Due after one year through five years	128,078			128,078
Due after five years through ten years	40,532			40,532
Due after ten years	147,412			147,412
Fair Value	1,647,260			1,647,260		1,408,326
Amortized Cost, Held to maturity
Due in one year or less	42,695			42,695
Due after one year through five years	175,308			175,308
Due after five years through ten years	224,040			224,040
Due after ten years	442,533			442,533
Investment securities held to maturity	923,036			923,036		959,082
Fair value, Held to maturity
Due in one year or less	42,916			42,916
Due after one year through five years	180,895			180,895
Due after five years through ten years	229,732			229,732
Due after ten years	447,800			447,800
Fair Value	940,203			940,203		992,455
Total Available for Sale and Held to Maturity Investment Securities
Amortized Cost	2,579,745			2,579,745		2,360,447
Fair Value	2,587,463			2,587,463		2,400,781
Pledged financial instruments, not separately reported, securities	738,600			738,600		726,100
Pledged financial instruments, not separately reported, securities required to be pledged	606,000			606,000		625,200
Transfer of investment securities from held-to-maturity to available-for-sale		$ 2,600
Residential and commercial mortgage-backed securities
Amortized Cost, Available for sale
Amortized Cost	1,289,505			1,289,505
Fair Value, Available for sale
Fair Value	1,269,003			1,269,003
Residential mortgage-backed securities
Amortized Cost, Available for sale
Amortized Cost						861,594
Fair Value, Available for sale
Fair Value						852,699
Amortized Cost, Held to maturity
Investment securities held to maturity	38,460			38,460		80,682
Fair value, Held to maturity
Fair Value	$ 38,860			$ 38,860		$ 81,943

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Loans - Schedule of Composition of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Loans
Total loans, excluding purchased credit-impaired loans	$ 13,719,244	$ 13,846,318
Purchased credit-impaired loans	101,001	119,744
Total loans	13,820,245	13,966,062	$ 13,614,141
Commercial Portfolio Segment
Loans
Total loans, excluding purchased credit-impaired loans	4,816,545	4,786,180
Total loans	4,827,004		4,721,125
Commercial Portfolio Segment | Collateralized
Loans
Total loans, excluding purchased credit-impaired loans	2,100,460	2,113,135
Total loans	2,100,460		2,076,911
Commercial Real Estate Portfolio Segment | Commercial real estate
Loans
Total loans, excluding purchased credit-impaired loans	3,929,327	4,147,529
Total loans	3,953,613		3,921,613
Commercial Real Estate Portfolio Segment | Construction real estate
Loans
Total loans, excluding purchased credit-impaired loans	495,805	406,849
Total loans	499,446		454,317
Commercial Real Estate Portfolio Segment | Other
Loans
Total loans, excluding purchased credit-impaired loans	901,922	964,326
Consumer Portfolio Segment | Commercial real estate
Loans
Total loans, excluding purchased credit-impaired loans	1,352,625	1,432,458
Consumer Portfolio Segment | Indirect vehicle
Loans
Total loans, excluding purchased credit-impaired loans	749,983	667,928
Total loans	749,983		627,819
Consumer Portfolio Segment | Home equity
Loans
Total loans, excluding purchased credit-impaired loans	192,785	219,098
Total loans	202,640		250,510
Consumer Portfolio Segment | Other
Loans
Total loans, excluding purchased credit-impaired loans	81,714	$ 73,141
Total loans	$ 82,989		$ 76,715

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Loans - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) category	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Receivables [Abstract]
Number of highest rating categories by rating services company | category			1
Number of highest rating categories to be achieved for classification as investment grade companies | category			4
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of collateral pledge of first mortgage loans as per agreement (minimum)	160.00%		160.00%
Percentage of collateral pledge of home equity loans as per agreement (minimum)	170.00%		170.00%
Percentage of collateral pledge of commercial real estate loans as per agreement (minimum)	161.00%		161.00%
Percentage of collateral pledge of outstanding advances from federal home loan bank as per agreement (minimum)	105.00%		105.00%
Loans pledged as collateral for long-term Federal Home Loan Bank advances	$ 4,300,000		$ 4,300,000		$ 4,700,000
Loans required to be pledged as collateral for long-term Federal Home Loan Bank advances	3,200,000		3,200,000		3,100,000
Loans pledged as collateral	858,900		858,900		902,200
Real estate | Commercial Real Estate Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans secured by owner-occupied properties	1,200,000		1,200,000
Provision	1,885	$ 4,927	5,968	$ 11,907
Purchased Credit-Impaired Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision			(413)
Allowance for loan losses and unfunded commitments write offs net of recoveries			(357)
Allowance for loan losses and unfunded commitments acquired with deteriorated credit quality	$ 1,100		$ 1,100		$ 1,200

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Loans - Contractual Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	$ 13,719,244	$ 13,846,318
Total loans	13,820,245	13,966,062	$ 13,614,141
Non-performing loan aging
Contractual aging of the recorded investment in loans
Current	30,509	36,879
Past Due	38,016	39,929
Total loans	68,525	76,808
Non-performing loan aging | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	1,103	8,799
Non-performing loan aging | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	6,663	4,961
Non-performing loan aging | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	30,250	26,169
Purchased credit-impaired loans
Contractual aging of the recorded investment in loans
Current	60,429	63,937
Past Due	40,572	55,807
Total loans	101,001	119,744
Purchased credit-impaired loans | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	4,685	8,749
Purchased credit-impaired loans | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	5,124	3,997
Purchased credit-impaired loans | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	30,763	43,061
Total loans, excluding purchased credit-impaired loans
Contractual aging of the recorded investment in loans
Current	13,649,904	13,762,588
Past Due	69,340	83,730
Total loans, excluding covered loans	13,719,244	13,846,318
Total loans, excluding purchased credit-impaired loans | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	24,363	43,626
Total loans, excluding purchased credit-impaired loans | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	14,727	13,935
Total loans, excluding purchased credit-impaired loans | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	30,250	26,169
Total loans
Contractual aging of the recorded investment in loans
Current	13,710,333	13,826,525
Past Due	109,912	139,537
Total loans	13,820,245	13,966,062
Total loans | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	29,048	52,375
Total loans | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	19,851	17,932
Total loans | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	61,013	69,230
Commercial Portfolio Segment
Contractual aging of the recorded investment in loans
Current	4,808,606	4,769,244
Past Due	7,939	16,936
Total loans, excluding covered loans	4,816,545	4,786,180
Total loans	4,827,004		4,721,125
Commercial Portfolio Segment | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	116	1,702
Commercial Portfolio Segment | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	217	6,926
Commercial Portfolio Segment | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	7,606	8,308
Commercial Portfolio Segment | Collateralized
Contractual aging of the recorded investment in loans
Current	2,069,443	2,099,246
Past Due	31,017	13,889
Total loans, excluding covered loans	2,100,460	2,113,135
Total loans	2,100,460		2,076,911
Commercial Portfolio Segment | Collateralized | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	16,560	11,320
Commercial Portfolio Segment | Collateralized | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	10,769	1,878
Commercial Portfolio Segment | Collateralized | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	3,688	691
Commercial Real Estate Portfolio Segment | Health care
Contractual aging of the recorded investment in loans
Current	694,863	710,722
Past Due	0	0
Total loans, excluding covered loans	694,863	710,722
Commercial Real Estate Portfolio Segment | Health care | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Health care | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Health care | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Industrial
Contractual aging of the recorded investment in loans
Current	857,560	908,394
Past Due	4,188	755
Total loans, excluding covered loans	861,748	909,149
Commercial Real Estate Portfolio Segment | Industrial | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	764	0
Commercial Real Estate Portfolio Segment | Industrial | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Industrial | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	3,424	755
Commercial Real Estate Portfolio Segment | Multifamily
Contractual aging of the recorded investment in loans
Current	549,083	601,844
Past Due	529	1,420
Total loans, excluding covered loans	549,612	603,264
Commercial Real Estate Portfolio Segment | Multifamily | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	529	688
Commercial Real Estate Portfolio Segment | Multifamily | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Multifamily | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	0	732
Commercial Real Estate Portfolio Segment | Retail
Contractual aging of the recorded investment in loans
Current	489,135	503,224
Past Due	835	474
Total loans, excluding covered loans	489,970	503,698
Commercial Real Estate Portfolio Segment | Retail | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Retail | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Retail | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	835	474
Commercial Real Estate Portfolio Segment | Office
Contractual aging of the recorded investment in loans
Current	430,984	453,960
Past Due	228	2,410
Total loans, excluding covered loans	431,212	456,370
Commercial Real Estate Portfolio Segment | Office | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Office | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	956
Commercial Real Estate Portfolio Segment | Office | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	228	1,454
Commercial Real Estate Portfolio Segment | Other
Contractual aging of the recorded investment in loans
Current	900,604	956,181
Past Due	1,318	8,145
Total loans, excluding covered loans	901,922	964,326
Commercial Real Estate Portfolio Segment | Other | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	552	7,035
Commercial Real Estate Portfolio Segment | Other | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	86	76
Commercial Real Estate Portfolio Segment | Other | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	680	1,034
Commercial Real Estate Portfolio Segment | Construction real estate
Contractual aging of the recorded investment in loans
Current	495,805	404,595
Past Due	0	2,254
Total loans, excluding covered loans	495,805	406,849
Total loans	499,446		454,317
Commercial Real Estate Portfolio Segment | Construction real estate | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	2,254
Commercial Real Estate Portfolio Segment | Construction real estate | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	0	0
Commercial Real Estate Portfolio Segment | Construction real estate | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	0	0
Consumer Portfolio Segment | Other
Contractual aging of the recorded investment in loans
Current	81,541	72,846
Past Due	173	295
Total loans, excluding covered loans	81,714	73,141
Total loans	82,989		76,715
Consumer Portfolio Segment | Other | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	91	202
Consumer Portfolio Segment | Other | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	43	36
Consumer Portfolio Segment | Other | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	39	57
Consumer Portfolio Segment | Residential real estate
Contractual aging of the recorded investment in loans
Current	1,341,504	1,410,473
Past Due	11,121	21,985
Total loans, excluding covered loans	1,352,625	1,432,458
Total loans	1,404,110		1,485,131
Consumer Portfolio Segment | Residential real estate | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	617	12,359
Consumer Portfolio Segment | Residential real estate | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	1,687	1,907
Consumer Portfolio Segment | Residential real estate | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	8,817	7,719
Consumer Portfolio Segment | Indirect vehicle
Contractual aging of the recorded investment in loans
Current	744,297	661,028
Past Due	5,686	6,900
Total loans, excluding covered loans	749,983	667,928
Total loans	749,983		627,819
Consumer Portfolio Segment | Indirect vehicle | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	3,947	4,905
Consumer Portfolio Segment | Indirect vehicle | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	1,131	1,083
Consumer Portfolio Segment | Indirect vehicle | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	608	912
Consumer Portfolio Segment | Home equity
Contractual aging of the recorded investment in loans
Current	186,479	210,831
Past Due	6,306	8,267
Total loans, excluding covered loans	192,785	219,098
Total loans	202,640		$ 250,510
Consumer Portfolio Segment | Home equity | 30-59 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	1,187	3,161
Consumer Portfolio Segment | Home equity | 60-89 Days Past Due
Contractual aging of the recorded investment in loans
Past Due	794	1,073
Consumer Portfolio Segment | Home equity | Loans Past Due 90 Days or More
Contractual aging of the recorded investment in loans
Past Due	$ 4,325	$ 4,033

XML

Loans - Recorded Investment in Non-Accrual Loans and Loans Past Due (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Contractual aging of the recorded investment in loans
Period past due of recorded investment in loans	90 days
Total loans
Contractual aging of the recorded investment in loans
Non-accrual	$ 64,515	$ 71,238
Loans past due 90 days or more and still accruing	4,010	5,570
Commercial Portfolio Segment
Contractual aging of the recorded investment in loans
Non-accrual	10,727	14,001
Loans past due 90 days or more and still accruing	0	3,500
Commercial Portfolio Segment | Collateralized
Contractual aging of the recorded investment in loans
Non-accrual	5,373	490
Loans past due 90 days or more and still accruing	3,688	531
Commercial Real Estate Portfolio Segment | Health care
Contractual aging of the recorded investment in loans
Non-accrual	0	0
Loans past due 90 days or more and still accruing	0	0
Commercial Real Estate Portfolio Segment | Industrial
Contractual aging of the recorded investment in loans
Non-accrual	3,485	8,807
Loans past due 90 days or more and still accruing	0	0
Commercial Real Estate Portfolio Segment | Multifamily
Contractual aging of the recorded investment in loans
Non-accrual	635	860
Loans past due 90 days or more and still accruing	0	0
Commercial Real Estate Portfolio Segment | Office
Contractual aging of the recorded investment in loans
Non-accrual	557	2,772
Loans past due 90 days or more and still accruing	0	0
Commercial Real Estate Portfolio Segment | Retail
Contractual aging of the recorded investment in loans
Non-accrual	835	590
Loans past due 90 days or more and still accruing	0	0
Commercial Real Estate Portfolio Segment | Other
Contractual aging of the recorded investment in loans
Non-accrual	5,813	8,016
Loans past due 90 days or more and still accruing	75	190
Commercial Real Estate Portfolio Segment | Construction real estate
Contractual aging of the recorded investment in loans
Non-accrual	0	0
Loans past due 90 days or more and still accruing	0	0
Consumer Portfolio Segment | Residential real estate
Contractual aging of the recorded investment in loans
Non-accrual	19,103	18,374
Loans past due 90 days or more and still accruing	201	1,210
Consumer Portfolio Segment | Indirect vehicle
Contractual aging of the recorded investment in loans
Non-accrual	3,444	3,019
Loans past due 90 days or more and still accruing	7	81
Consumer Portfolio Segment | Home equity
Contractual aging of the recorded investment in loans
Non-accrual	14,541	14,305
Loans past due 90 days or more and still accruing	0	0
Consumer Portfolio Segment | Other
Contractual aging of the recorded investment in loans
Non-accrual	2	4
Loans past due 90 days or more and still accruing	$ 39	$ 58

XML

Loans - Risk Category and Recorded Investment of Loans by Class (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loans
Commercial related loans, excluding purchased credit-impaired loans	$ 11,342,137	$ 11,453,693
Non-performing substandard and doubtful loans	27,500	35,600
Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	10,824,604	10,997,156
Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	246,347	247,692
Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	271,186	208,845
Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Portfolio Segment
Loans
Commercial related loans, excluding purchased credit-impaired loans	4,816,545	4,786,180
Commercial Portfolio Segment | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	4,518,183	4,535,111
Commercial Portfolio Segment | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	169,458	147,232
Commercial Portfolio Segment | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	128,904	103,837
Commercial Portfolio Segment | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Portfolio Segment | Collateralized
Loans
Commercial related loans, excluding purchased credit-impaired loans	2,100,460	2,113,135
Commercial Portfolio Segment | Collateralized | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	2,083,287	2,095,668
Commercial Portfolio Segment | Collateralized | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	6,114	7,527
Commercial Portfolio Segment | Collateralized | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	11,059	9,940
Commercial Portfolio Segment | Collateralized | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Multifamily
Loans
Commercial related loans, excluding purchased credit-impaired loans	549,612	603,264
Commercial Real Estate Portfolio Segment | Multifamily | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	546,488	595,818
Commercial Real Estate Portfolio Segment | Multifamily | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	1,345	146
Commercial Real Estate Portfolio Segment | Multifamily | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	1,779	7,300
Commercial Real Estate Portfolio Segment | Multifamily | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Retail
Loans
Commercial related loans, excluding purchased credit-impaired loans	489,970	503,698
Commercial Real Estate Portfolio Segment | Retail | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	465,899	492,830
Commercial Real Estate Portfolio Segment | Retail | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	21,226	8,326
Commercial Real Estate Portfolio Segment | Retail | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	2,845	2,542
Commercial Real Estate Portfolio Segment | Retail | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Office
Loans
Commercial related loans, excluding purchased credit-impaired loans	431,212	456,370
Commercial Real Estate Portfolio Segment | Office | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	422,682	452,902
Commercial Real Estate Portfolio Segment | Office | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	4,735	696
Commercial Real Estate Portfolio Segment | Office | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	3,795	2,772
Commercial Real Estate Portfolio Segment | Office | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Construction real estate
Loans
Commercial related loans, excluding purchased credit-impaired loans	495,805	406,849
Commercial Real Estate Portfolio Segment | Construction real estate | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	490,270	406,849
Commercial Real Estate Portfolio Segment | Construction real estate | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Construction real estate | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	5,535	0
Commercial Real Estate Portfolio Segment | Construction real estate | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Other
Loans
Commercial related loans, excluding purchased credit-impaired loans	901,922	964,326
Commercial Real Estate Portfolio Segment | Other | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	854,186	891,703
Commercial Real Estate Portfolio Segment | Other | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	16,600	37,682
Commercial Real Estate Portfolio Segment | Other | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	31,136	34,941
Commercial Real Estate Portfolio Segment | Other | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Health care
Loans
Commercial related loans, excluding purchased credit-impaired loans	694,863	710,722
Commercial Real Estate Portfolio Segment | Health care | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	610,505	640,751
Commercial Real Estate Portfolio Segment | Health care | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	7,149	33,672
Commercial Real Estate Portfolio Segment | Health care | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	77,209	36,299
Commercial Real Estate Portfolio Segment | Health care | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Commercial Real Estate Portfolio Segment | Industrial
Loans
Commercial related loans, excluding purchased credit-impaired loans	861,748	909,149
Commercial Real Estate Portfolio Segment | Industrial | Pass
Loans
Commercial related loans, excluding purchased credit-impaired loans	833,104	885,524
Commercial Real Estate Portfolio Segment | Industrial | Special Mention
Loans
Commercial related loans, excluding purchased credit-impaired loans	19,720	12,411
Commercial Real Estate Portfolio Segment | Industrial | Substandard
Loans
Commercial related loans, excluding purchased credit-impaired loans	8,924	11,214
Commercial Real Estate Portfolio Segment | Industrial | Doubtful
Loans
Commercial related loans, excluding purchased credit-impaired loans	0	0
Consumer Portfolio Segment
Loans
Commercial related loans, excluding purchased credit-impaired loans	2,377,107	2,392,625
Consumer Portfolio Segment | Performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	2,339,770	2,355,574
Consumer Portfolio Segment | Non-performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	37,337	37,051
Consumer Portfolio Segment | Residential real estate
Loans
Commercial related loans, excluding purchased credit-impaired loans	1,352,625	1,432,458
Consumer Portfolio Segment | Residential real estate | Performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	1,333,321	1,412,874
Consumer Portfolio Segment | Residential real estate | Non-performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	19,304	19,584
Consumer Portfolio Segment | Indirect vehicle
Loans
Commercial related loans, excluding purchased credit-impaired loans	749,983	667,928
Consumer Portfolio Segment | Indirect vehicle | Performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	746,532	664,828
Consumer Portfolio Segment | Indirect vehicle | Non-performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	3,451	3,100
Consumer Portfolio Segment | Home equity
Loans
Commercial related loans, excluding purchased credit-impaired loans	192,785	219,098
Consumer Portfolio Segment | Home equity | Performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	178,244	204,793
Consumer Portfolio Segment | Home equity | Non-performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	14,541	14,305
Consumer Portfolio Segment | Other
Loans
Commercial related loans, excluding purchased credit-impaired loans	81,714	73,141
Consumer Portfolio Segment | Other | Performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	81,673	73,079
Consumer Portfolio Segment | Other | Non-performing
Loans
Commercial related loans, excluding purchased credit-impaired loans	$ 41	$ 62

XML

Loans - Loans Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Loans
Amount of mortgage loans in process of foreclosure	$ 54,700	$ 54,700	$ 43,600
Unpaid Principal Balance	82,304	82,304	92,635
Recorded Investment	76,938	76,938	86,970
Partial Charge-offs	5,366	5,366	5,665
Allowance for Loan Losses Allocated	10,196	10,196	10,414
Average Recorded Investment	71,687	71,933	73,282
Interest Income Recognized	278	399	904
Performing
Loans
Restructured loans	25,660	25,660	28,554
Non-performing
Loans
Restructured loans	26,236	26,236	30,836
Impaired financing receivable with no allowance | Commercial Portfolio Segment
Loans
Unpaid Principal Balance	5,862	5,862	8,312
Recorded Investment	5,321	5,321	7,771
Partial Charge-offs	541	541	541
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	6,473	6,768	5,595
Interest Income Recognized	0	0	95
Impaired financing receivable with no allowance | Commercial Portfolio Segment | Collateralized
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	301
Interest Income Recognized	0	0	0
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Health care
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	0
Interest Income Recognized	0	0	0
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Industrial
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	1,260
Interest Income Recognized	0	0	8
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Multifamily
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	1,261
Interest Income Recognized	0	0	29
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Retail
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	814
Interest Income Recognized	0	0	27
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Office
Loans
Unpaid Principal Balance	0	0	527
Recorded Investment	0	0	527
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	1,426
Interest Income Recognized	0	0	18
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Other
Loans
Unpaid Principal Balance	0	0	10,597
Recorded Investment	0	0	10,597
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	1,653	2,312
Interest Income Recognized	0	52	128
Impaired financing receivable with no allowance | Commercial Real Estate Portfolio Segment | Construction real estate
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	0
Interest Income Recognized	0	0	0
Impaired financing receivable with no allowance | Consumer Portfolio Segment | Real estate
Loans
Unpaid Principal Balance	4,089	4,089	1,950
Recorded Investment	4,051	4,051	1,912
Partial Charge-offs	38	38	38
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	4,142	3,770	483
Interest Income Recognized	0	0	0
Impaired financing receivable with no allowance | Consumer Portfolio Segment | Indirect vehicle
Loans
Unpaid Principal Balance	647	647	408
Recorded Investment	334	334	202
Partial Charge-offs	313	313	206
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	644	562	411
Interest Income Recognized	21	28	26
Impaired financing receivable with no allowance | Consumer Portfolio Segment | Home equity
Loans
Unpaid Principal Balance	79	79	81
Recorded Investment	79	79	81
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	376
Interest Income Recognized	0	0	0
Impaired financing receivable with no allowance | Consumer Portfolio Segment | Other consumer
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	0
Interest Income Recognized	0	0	0
Impaired financing receivable with allowance | Commercial Portfolio Segment
Loans
Unpaid Principal Balance	4,795	4,795	7,418
Recorded Investment	4,795	4,795	7,418
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	1,421	1,421	2,315
Average Recorded Investment	4,917	4,921	7,668
Interest Income Recognized	78	97	277
Impaired financing receivable with allowance | Commercial Portfolio Segment | Collateralized
Loans
Unpaid Principal Balance	5,078	5,078	0
Recorded Investment	5,078	5,078	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	3,144	3,144	0
Average Recorded Investment	331	166	126
Interest Income Recognized	0	0	14
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Health care
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	539	0
Interest Income Recognized	0	28	0
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Industrial
Loans
Unpaid Principal Balance	3,423	3,423	8,339
Recorded Investment	3,423	3,423	8,317
Partial Charge-offs	0	0	22
Allowance for Loan Losses Allocated	1,420	1,420	2,669
Average Recorded Investment	3,493	3,207	3,215
Interest Income Recognized	4	8	171
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Multifamily
Loans
Unpaid Principal Balance	0	0	568
Recorded Investment	0	0	568
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	320
Average Recorded Investment	0	0	426
Interest Income Recognized	0	0	0
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Retail
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	1,345
Interest Income Recognized	0	0	28
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Office
Loans
Unpaid Principal Balance	0	0	2,293
Recorded Investment	0	0	2,277
Partial Charge-offs	0	0	16
Allowance for Loan Losses Allocated	0	0	752
Average Recorded Investment	0	0	636
Interest Income Recognized	0	0	4
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Other
Loans
Unpaid Principal Balance	6,487	6,487	0
Recorded Investment	6,487	6,487	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	559	559	0
Average Recorded Investment	4,149	2,086	29
Interest Income Recognized	124	124	0
Impaired financing receivable with allowance | Commercial Real Estate Portfolio Segment | Construction real estate
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	0
Interest Income Recognized	0	0	0
Impaired financing receivable with allowance | Consumer Portfolio Segment | Real estate
Loans
Unpaid Principal Balance	20,461	20,461	21,380
Recorded Investment	18,603	18,603	19,014
Partial Charge-offs	1,858	1,858	2,366
Allowance for Loan Losses Allocated	1,729	1,729	2,158
Average Recorded Investment	18,605	18,956	17,616
Interest Income Recognized	31	32	25
Impaired financing receivable with allowance | Consumer Portfolio Segment | Indirect vehicle
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	0
Interest Income Recognized	0	0	0
Impaired financing receivable with allowance | Consumer Portfolio Segment | Home equity
Loans
Unpaid Principal Balance	31,383	31,383	30,762
Recorded Investment	28,767	28,767	28,286
Partial Charge-offs	2,616	2,616	2,476
Allowance for Loan Losses Allocated	1,923	1,923	2,200
Average Recorded Investment	28,933	29,305	27,982
Interest Income Recognized	20	30	54
Impaired financing receivable with allowance | Consumer Portfolio Segment | Other consumer
Loans
Unpaid Principal Balance	0	0	0
Recorded Investment	0	0	0
Partial Charge-offs	0	0	0
Allowance for Loan Losses Allocated	0	0	0
Average Recorded Investment	0	0	0
Interest Income Recognized	$ 0	$ 0	$ 0

XML

Loans - Loans That Have Been Restructured (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) loan	Jun. 30, 2017 USD ($) loan	Jun. 30, 2018 USD ($) loan	Jun. 30, 2017 USD ($) loan
Restructured loans
Redefaulted loans			$ 0
Period past due of redefaulted loans			90 days
Performing
Restructured loans
Number of Loans | loan	0	14	1	18
Pre-Modification Recorded Investment	$ 0	$ 6,513,000	$ 88,000	$ 6,954,000
Post-Modification Recorded Investment	0	6,513,000	88,000	6,954,000
Charge-offs and Specific Reserves	$ 0	$ 462,000	$ 9,000	$ 514,000
Non-performing
Restructured loans
Number of Loans | loan	19	24	41	37
Pre-Modification Recorded Investment	$ 1,065,000	$ 3,664,000	$ 2,771,000	$ 4,942,000
Post-Modification Recorded Investment	1,065,000	3,664,000	2,771,000	4,942,000
Charge-offs and Specific Reserves	$ 193,000	$ 371,000	$ 990,000	$ 529,000
Commercial Portfolio Segment | Performing
Restructured loans
Number of Loans | loan		5		5
Pre-Modification Recorded Investment		$ 2,491,000		$ 2,491,000
Post-Modification Recorded Investment		2,491,000		2,491,000
Charge-offs and Specific Reserves		$ 373,000		$ 373,000
Commercial Portfolio Segment | Non-performing
Restructured loans
Number of Loans | loan		2		2
Pre-Modification Recorded Investment		$ 676,000		$ 676,000
Post-Modification Recorded Investment		676,000		676,000
Charge-offs and Specific Reserves		$ 0		$ 0
Commercial Real Estate Portfolio Segment | Performing | Office
Restructured loans
Number of Loans | loan		1		1
Pre-Modification Recorded Investment		$ 549,000		$ 549,000
Post-Modification Recorded Investment		549,000		549,000
Charge-offs and Specific Reserves		$ 0		$ 0
Commercial Real Estate Portfolio Segment | Performing | Other
Restructured loans
Number of Loans | loan		1		1
Pre-Modification Recorded Investment		$ 147,000		$ 147,000
Post-Modification Recorded Investment		147,000		147,000
Charge-offs and Specific Reserves		$ 0		$ 0
Commercial Real Estate Portfolio Segment | Performing | Industrial
Restructured loans
Number of Loans | loan		2		2
Pre-Modification Recorded Investment		$ 2,787,000		$ 2,787,000
Post-Modification Recorded Investment		2,787,000		2,787,000
Charge-offs and Specific Reserves		$ 0		$ 0
Commercial Real Estate Portfolio Segment | Non-performing | Multifamily
Restructured loans
Number of Loans | loan		3		3
Pre-Modification Recorded Investment		$ 290,000		$ 290,000
Post-Modification Recorded Investment		290,000		290,000
Charge-offs and Specific Reserves		$ 0		$ 0
Commercial Real Estate Portfolio Segment | Non-performing | Retail
Restructured loans
Number of Loans | loan		1		1
Pre-Modification Recorded Investment		$ 906,000		$ 906,000
Post-Modification Recorded Investment		906,000		906,000
Charge-offs and Specific Reserves		$ 0		$ 0
Consumer Portfolio Segment | Performing | Residential real estate
Restructured loans
Number of Loans | loan		3	1	6
Pre-Modification Recorded Investment		$ 493,000	$ 88,000	$ 902,000
Post-Modification Recorded Investment		493,000	88,000	902,000
Charge-offs and Specific Reserves		$ 86,000	$ 9,000	$ 135,000
Consumer Portfolio Segment | Performing | Home equity
Restructured loans
Number of Loans | loan		2		3
Pre-Modification Recorded Investment		$ 46,000		$ 78,000
Post-Modification Recorded Investment		46,000		78,000
Charge-offs and Specific Reserves		$ 3,000		$ 6,000
Consumer Portfolio Segment | Non-performing | Residential real estate
Restructured loans
Number of Loans | loan	8	8	16	17
Pre-Modification Recorded Investment	$ 935,000	$ 1,122,000	$ 2,441,000	$ 2,380,000
Post-Modification Recorded Investment	935,000	1,122,000	2,441,000	2,380,000
Charge-offs and Specific Reserves	$ 152,000	$ 289,000	$ 938,000	$ 443,000
Consumer Portfolio Segment | Non-performing | Indirect vehicle
Restructured loans
Number of Loans | loan	9	8	20	11
Pre-Modification Recorded Investment	$ 54,000	$ 77,000	$ 120,000	$ 97,000
Post-Modification Recorded Investment	54,000	77,000	120,000	97,000
Charge-offs and Specific Reserves	$ 36,000	$ 25,000	$ 38,000	$ 29,000
Consumer Portfolio Segment | Non-performing | Home equity
Restructured loans
Number of Loans | loan	2	2	5	3
Pre-Modification Recorded Investment	$ 76,000	$ 593,000	$ 210,000	$ 593,000
Post-Modification Recorded Investment	76,000	593,000	210,000	593,000
Charge-offs and Specific Reserves	$ 5,000	$ 57,000	$ 14,000	$ 57,000

XML

Loans - Troubled Debt Restructuring Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Performing
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward]
Beginning balance	$ 28,554
Additions	88
Charge-offs	0
Principal payments, net	(4,774)
Removals	(77)
Transfer to other real estate owned	0
Transfers in	2,382
Transfers out	(513)
Ending balance	25,660
Non-performing
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward]
Beginning balance	30,836
Additions	2,771
Charge-offs	(130)
Principal payments, net	(5,364)
Removals	(8)
Transfer to other real estate owned	0
Transfers in	513
Transfers out	(2,382)
Ending balance	$ 26,236

XML

Loans - Financing Receivable Modifications and Restructuring (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	$ 2,859
Extended Maturity, Amortization and Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	1,256
Extended Maturity and/or Amortization
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	1,072
Delay in Payments and/or Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	531
Consumer Portfolio Segment | Residential real estate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	2,529
Consumer Portfolio Segment | Residential real estate | Extended Maturity, Amortization and Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	1,256
Consumer Portfolio Segment | Residential real estate | Extended Maturity and/or Amortization
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	862
Consumer Portfolio Segment | Residential real estate | Delay in Payments and/or Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	411
Consumer Portfolio Segment | Indirect vehicle
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	120
Consumer Portfolio Segment | Indirect vehicle | Extended Maturity, Amortization and Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	0
Consumer Portfolio Segment | Indirect vehicle | Extended Maturity and/or Amortization
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	0
Consumer Portfolio Segment | Indirect vehicle | Delay in Payments and/or Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	120
Consumer Portfolio Segment | Home equity
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	210
Consumer Portfolio Segment | Home equity | Extended Maturity, Amortization and Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	0
Consumer Portfolio Segment | Home equity | Extended Maturity and/or Amortization
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	210
Consumer Portfolio Segment | Home equity | Delay in Payments and/or Reduction of Interest Rate
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method
Post-modification recorded investment	$ 0

XML

Loans - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Allowance for credit losses:
Beginning balance			$ 157,710
Ending balance	$ 162,790		162,790
Unfunded Commitments
Allowance for unfunded credit commitments, Beginning balance	1,678	$ 2,328	1,698	$ 2,476
Allowance for unfunded commitments, Charge-Offs	0	0	0	0
Allowance for unfunded commitments, Recoveries	0	0	0	0
Allowance for unfunded commitments, Provision	110	(64)	90	(212)
Allowance for unfunded credit commitments, Ending balance	1,788	2,264	1,788	2,264
Allowance for credit losses
Allowance for credit losses, Beginning balance	163,390	146,498	159,408	141,842
Allowance for loan losses and unfunded commitments charge offs	6,720	2,921	13,538	6,294
Allowance for loan losses and unfunded commitments recoveries	1,689	3,021	4,981	7,316
Allowance for loan losses and unfunded commitments provision	6,219	9,699	13,727	13,433
Allowance for credit losses, Ending balance	164,578	156,297	164,578	156,297
Ending allowance balance attributable to loans:
Individually evaluated for impairment, Unfunded commitments	616	516	616	516
Individually evaluated for impairment, Total	10,812	7,095	10,812	7,095
Collectively evaluated for impairment, Unfunded commitments	1,172	1,748	1,172	1,748
Collectively evaluated for impairment, Total	152,645	148,670	152,645	148,670
Acquired and accounted for under ASC 310-30	1,121	532	1,121	532
Acquired and accounted for under ASC 310-30, Unfunded commitments	0	0	0	0
Loans:
Individually evaluated for impairment	76,938	71,107	76,938	71,107
Individually evaluated for impairment, Unfunded commitments	0	0	0	0
Collectively evaluated for impairment	13,642,306	13,393,957	13,642,306	13,393,957
Collectively evaluated for impairment, Unfunded commitments	0	0	0	0
Acquired and accounted for under ASC 310-30	101,001	149,077	101,001	149,077
Acquired and accounted for under ASC 310-30, Unfunded commitments	0	0	0	0
Total loans	13,820,245	13,614,141	13,820,245	13,614,141	$ 13,966,062
Total loans, Unfunded commitments	0	0	0	0
Commercial Portfolio Segment
Allowance for credit losses:
Beginning balance	45,551	40,690	46,267	44,661
Charge-offs	1,534	700	2,936	868
Recoveries	167	1,339	504	2,849
Provision	(3,866)	2,454	(3,517)	(2,859)
Ending balance	40,318	43,783	40,318	43,783
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,421	1,076	1,421	1,076
Collectively evaluated for impairment	38,823	42,619	38,823	42,619
Acquired and accounted for under ASC 310-30	74	88	74	88
Loans:
Individually evaluated for impairment	10,116	11,167	10,116	11,167
Collectively evaluated for impairment	4,806,429	4,692,161	4,806,429	4,692,161
Acquired and accounted for under ASC 310-30	10,459	17,797	10,459	17,797
Total loans	4,827,004	4,721,125	4,827,004	4,721,125
Commercial Portfolio Segment | Collateralized
Allowance for credit losses:
Beginning balance	12,993	12,143	13,007	12,238
Charge-offs	716		716
Recoveries	149	249	400	712
Provision	669	373	404	(185)
Ending balance	13,095	12,765	13,095	12,765
Ending allowance balance attributable to loans:
Individually evaluated for impairment	3,144	0	3,144	0
Collectively evaluated for impairment	9,951	12,765	9,951	12,765
Acquired and accounted for under ASC 310-30		0		0
Loans:
Individually evaluated for impairment	5,078	1	5,078	1
Collectively evaluated for impairment	2,095,382	2,076,910	2,095,382	2,076,910
Acquired and accounted for under ASC 310-30	0	0	0	0
Total loans	2,100,460	2,076,911	2,100,460	2,076,911
Commercial Real Estate Portfolio Segment | Commercial real estate
Allowance for credit losses:
Beginning balance	65,798	58,220	63,429	51,807
Charge-offs	2,621	262	5,097	1,347
Recoveries	329	362	1,091	880
Provision	1,885	4,927	5,968	11,907
Ending balance	65,391	63,247	65,391	63,247
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,979	724	1,979	724
Collectively evaluated for impairment	62,400	62,115	62,400	62,115
Acquired and accounted for under ASC 310-30	1,012	408	1,012	408
Loans:
Individually evaluated for impairment	9,910	13,820	9,910	13,820
Collectively evaluated for impairment	3,919,417	3,868,934	3,919,417	3,868,934
Acquired and accounted for under ASC 310-30	24,286	38,859	24,286	38,859
Total loans	3,953,613	3,921,613	3,953,613	3,921,613
Commercial Real Estate Portfolio Segment | Construction real estate
Allowance for credit losses:
Beginning balance	19,803	14,859	15,501	14,758
Charge-offs	0		0
Recoveries	37	47	430	159
Provision	6,952	357	10,861	346
Ending balance	26,792	15,263	26,792	15,263
Ending allowance balance attributable to loans:
Individually evaluated for impairment		0		0
Collectively evaluated for impairment	26,757	15,227	26,757	15,227
Acquired and accounted for under ASC 310-30	35	36	35	36
Loans:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	495,805	449,116	495,805	449,116
Acquired and accounted for under ASC 310-30	3,641	5,201	3,641	5,201
Total loans	499,446	454,317	499,446	454,317
Consumer Portfolio Segment | Residential real estate
Allowance for credit losses:
Beginning balance	6,376	8,131	7,012	5,971
Charge-offs	28	270	729	360
Recoveries	26	58	96	586
Provision	(642)	330	(647)	2,052
Ending balance	5,732	8,249	5,732	8,249
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,729	1,839	1,729	1,839
Collectively evaluated for impairment	4,003	6,410	4,003	6,410
Acquired and accounted for under ASC 310-30		0		0
Loans:
Individually evaluated for impairment	22,654	16,956	22,654	16,956
Collectively evaluated for impairment	1,329,971	1,394,303	1,329,971	1,394,303
Acquired and accounted for under ASC 310-30	51,485	73,872	51,485	73,872
Total loans	1,404,110	1,485,131	1,404,110	1,485,131
Consumer Portfolio Segment | Indirect vehicle
Allowance for credit losses:
Beginning balance	4,350	3,624	4,728	3,421
Charge-offs	1,328	930	3,152	2,341
Recoveries	664	565	1,843	1,217
Provision	1,052	704	1,319	1,666
Ending balance	4,738	3,963	4,738	3,963
Ending allowance balance attributable to loans:
Individually evaluated for impairment		0		0
Collectively evaluated for impairment	4,738	3,963	4,738	3,963
Acquired and accounted for under ASC 310-30		0		0
Loans:
Individually evaluated for impairment	334	144	334	144
Collectively evaluated for impairment	749,649	627,675	749,649	627,675
Acquired and accounted for under ASC 310-30	0	0	0	0
Total loans	749,983	627,819	749,983	627,819
Consumer Portfolio Segment | Home equity
Allowance for credit losses:
Beginning balance	4,346	5,312	5,296	5,469
Charge-offs	184	261	248	434
Recoveries	228	292	298	575
Provision	(248)	206	(1,204)	(61)
Ending balance	4,142	5,549	4,142	5,549
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,923	2,940	1,923	2,940
Collectively evaluated for impairment	2,219	2,609	2,219	2,609
Acquired and accounted for under ASC 310-30		0		0
Loans:
Individually evaluated for impairment	28,846	29,019	28,846	29,019
Collectively evaluated for impairment	163,939	209,933	163,939	209,933
Acquired and accounted for under ASC 310-30	9,855	11,558	9,855	11,558
Total loans	202,640	250,510	202,640	250,510
Consumer Portfolio Segment | Other
Allowance for credit losses:
Beginning balance	2,495	1,191	2,470	1,041
Charge-offs	309	498	660	944
Recoveries	89	109	319	338
Provision	307	412	453	779
Ending balance	2,582	1,214	2,582	1,214
Ending allowance balance attributable to loans:
Individually evaluated for impairment		0		0
Collectively evaluated for impairment	2,582	1,214	2,582	1,214
Acquired and accounted for under ASC 310-30		0		0
Loans:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	81,714	74,925	81,714	74,925
Acquired and accounted for under ASC 310-30	1,275	1,790	1,275	1,790
Total loans	$ 82,989	$ 76,715	$ 82,989	$ 76,715

XML

Loans - Changes in the Accretable Yield (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Changes in the accretable yield for purchased credit-impaired loans
Balance at beginning of period	$ 10,267	$ 14,911	$ 12,069	$ 16,050
Purchases	0	0	0	43
Accretion	(2,223)	(2,831)	(4,634)	(5,019)
Other	197	606	806	1,612
Balance at end of period	$ 8,241	$ 12,686	$ 8,241	$ 12,686

XML

Loans - Carrying Amount of Loans Acquired (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Loans
Non covered loans	$ 1,070,823
Total acquired	1,084,828
Purchased Credit-Impaired Loans
Loans
Non covered loans	43,414
Total acquired	57,419
Purchased Non-Credit-Impaired Loans
Loans
Non covered loans	1,027,409
Total acquired	1,027,409
Other Loans | Purchased Credit-Impaired Loans | Ginnie Mae
Loans
Consumer related purchased credit-impaired loans	43,600
Consumer Portfolio Segment | Consumer related
Loans
Covered loans	14,005
Non covered loans	236,258
Consumer Portfolio Segment | Consumer related | Purchased Credit-Impaired Loans
Loans
Covered loans	14,005
Non covered loans	5,029
Consumer Portfolio Segment | Consumer related | Purchased Non-Credit-Impaired Loans
Loans
Covered loans	0
Non covered loans	231,229
Commercial Portfolio Segment
Loans
Non covered loans	187,119
Commercial Portfolio Segment | Purchased Credit-Impaired Loans
Loans
Non covered loans	10,459
Commercial Portfolio Segment | Purchased Non-Credit-Impaired Loans
Loans
Non covered loans	176,660
Commercial Portfolio Segment | Collateralized
Loans
Non covered loans	15,406
Commercial Portfolio Segment | Collateralized | Purchased Credit-Impaired Loans
Loans
Non covered loans	0
Commercial Portfolio Segment | Collateralized | Purchased Non-Credit-Impaired Loans
Loans
Non covered loans	15,406
Commercial Real Estate Portfolio Segment | Real estate
Loans
Non covered loans	625,641
Commercial Real Estate Portfolio Segment | Real estate | Purchased Credit-Impaired Loans
Loans
Non covered loans	24,285
Commercial Real Estate Portfolio Segment | Real estate | Purchased Non-Credit-Impaired Loans
Loans
Non covered loans	601,356
Commercial Real Estate Portfolio Segment | Construction real estate
Loans
Non covered loans	6,399
Commercial Real Estate Portfolio Segment | Construction real estate | Purchased Credit-Impaired Loans
Loans
Non covered loans	3,641
Commercial Real Estate Portfolio Segment | Construction real estate | Purchased Non-Credit-Impaired Loans
Loans
Non covered loans	$ 2,758

XML

Goodwill and Intangibles - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments | segment			3
Goodwill	$ 999,925,000		$ 999,925,000		$ 1,003,548,000
Impairment	$ 3,623,000	$ 0	$ 3,623,000	$ 0
Weighted average amortization period (in years)			12 years

XML

Goodwill and Intangibles - Changes In Carrying Amount of Goodwill (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Goodwill [Roll Forward]
Balance at beginning of period			$ 1,003,548,000
Impairment	$ (3,623,000)	$ 0	(3,623,000)	$ 0
Balance at end of period	999,925,000		999,925,000
Banking
Goodwill [Roll Forward]
Balance at beginning of period			959,285,000
Impairment			0
Balance at end of period	959,285,000		959,285,000
Leasing
Goodwill [Roll Forward]
Balance at beginning of period			40,640,000
Impairment			0
Balance at end of period	40,640,000		40,640,000
Mortgage Banking
Goodwill [Roll Forward]
Balance at beginning of period			3,623,000
Impairment			(3,623,000)
Balance at end of period	$ 0		$ 0

XML

Goodwill and Intangibles - Changes in Core Deposit and Client Relationship Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018
Changes in the carrying amount of core deposit and client relationship intangibles
Balance at beginning of period			$ 54,766
Amortization expense	$ (1,896)	$ (2,086)	(3,798)	$ (4,176)
Balance at end of period	50,968		50,968
Gross carrying amount					$ 112,820
Accumulated amortization					(61,852)
Net book value	$ 50,968		$ 54,766		$ 50,968

XML

Goodwill and Intangibles - Estimated Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 3,653
2019	5,674
2020	5,022
2021	4,790
2022	3,806
Thereafter	28,023
Total estimated future amortization expense	$ 50,968

XML

Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Banking and Thrift [Abstract]
Demand deposit accounts, noninterest bearing	$ 6,347,208	$ 6,381,512
NOW, money market, and interest bearing deposits	4,950,676	4,954,765
Savings accounts	1,181,078	1,167,810
Certificates of deposit, $250,000 or more	1,459,919	1,506,071
Other certificates of deposit	983,782	948,220
Total deposits	14,922,663	14,958,378
Brokered deposits	$ 1,100,000	$ 1,100,000

XML

Short-Term Borrowings - Schedule of Short-Term Borrowings (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Short-term borrowings
Weighted Average Interest Rate	1.53%	1.03%
Amount	$ 651,462,000	$ 861,039,000
Customer repurchase agreements
Short-term borrowings
Weighted Average Interest Rate	0.55%	0.27%
Amount	$ 244,462,000	$ 232,789,000
Federal Home Loan Bank advances
Short-term borrowings
Weighted Average Interest Rate	2.13%	1.31%
Amount	$ 400,000,000	$ 625,000,000
Federal funds purchased
Short-term borrowings
Weighted Average Interest Rate	2.21%	1.26%
Amount	$ 7,000,000	$ 3,250,000
Line of credit
Short-term borrowings
Weighted Average Interest Rate	0.00%	0.00%
Amount	$ 0	$ 0

XML

Short-Term Borrowings - Additional Information (Details) - USD ($)	Aug. 24, 2016	Dec. 18, 2015	Jun. 30, 2018	Dec. 31, 2017
Short-term borrowings
Fixed interest rate Federal Home Loan Bank advances			$ 400,000,000	$ 625,000,000
Short-term borrowings			651,462,000	861,039,000
London Interbank Offered Rate (LIBOR)
Short-term borrowings
Basis spread on variable rate	1.75%
Federal Home Loan Bank advances
Short-term borrowings
Short-term borrowings			$ 400,000,000	625,000,000
Federal Home Loan Bank advances | Minimum
Short-term borrowings
Effective interest rate of amounts due within one year			1.35%
Federal Home Loan Bank advances | Maximum
Short-term borrowings
Effective interest rate of amounts due within one year			2.35%
Line of credit
Short-term borrowings
Line of credit facility, maximum borrowing capacity		$ 35,000,000.0
Short-term borrowings			$ 0	$ 0
Line of credit | London Interbank Offered Rate (LIBOR)
Short-term borrowings
Basis spread on variable rate		1.75%

XML

Long-Term Borrowings (Details) - USD ($)	Nov. 16, 2017	Aug. 24, 2016	Jun. 30, 2018	Dec. 31, 2017
Long-term borrowings
Weighted Average Interest Rate			3.09%	2.97%
Amount			$ 730,292,000	$ 505,158,000
Federal Home Loan Bank advances			$ 478,100,000	$ 231,300,000
London Interbank Offered Rate (LIBOR)
Long-term borrowings
Basis spread on variable rate		1.75%
Federal Home Loan Bank advances
Long-term borrowings
Weighted Average Interest Rate			2.52%	1.73%
Amount			$ 478,096,000	$ 231,317,000
Federal Home Loan Bank advances | Minimum
Long-term borrowings
Interest rate			2.31%
Federal Home Loan Bank advances | Maximum
Long-term borrowings
Interest rate			5.87%
Notes payable
Long-term borrowings
Weighted Average Interest Rate			4.57%	4.14%
Amount			$ 79,196,000	$ 90,807,000
Subordinated notes, net of issuance costs
Long-term borrowings
Weighted Average Interest Rate			4.00%	4.00%
Amount			$ 173,000,000	$ 173,034,000
Debt instrument, face amount	$ 175,000,000
Debt instrument, stated interest rate	4.00%
Subordinated notes, net of issuance costs | London Interbank Offered Rate (LIBOR)
Long-term borrowings
Basis spread on variable rate	1.873%
Unsecured term
Long-term borrowings
Weighted Average Interest Rate			0.00%	3.31%
Amount		$ 16,000,000	$ 0	$ 10,000,000
Quarterly principal payments		$ 1,000,000
Notes payable to banks
Long-term borrowings
Weighted Average Interest Rate			4.57%
Amount			$ 75,500,000	76,300,000
Equipment pledged as collateral			$ 92,800,000	91,900,000
Notes payable to banks | Minimum
Long-term borrowings
Interest rate			2.25%
Notes payable to banks | Maximum
Long-term borrowings
Interest rate			7.25%
Other secured borrowings
Long-term borrowings
Weighted Average Interest Rate			4.56%
Amount			$ 3,700,000	$ 14,500,000

XML

Junior Subordinated Notes Issued to Capital Trusts (Details) - USD ($) $ in Thousands			3 Months Ended			6 Months Ended
	Mar. 19, 2018	Aug. 24, 2016	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Junior Subordinated Notes
Principal balance			$ 194,450			$ 194,450		$ 211,494
Investment Owned, Balance [Abstract]
Loss on extinguishment of debt			0		$ 0	$ 3,136	$ 0
Junior Subordinated Notes | Maximum
Investment Owned, Balance [Abstract]
Period for deferment of payment of interest on notes (in years)						5 years
London Interbank Offered Rate (LIBOR)
Junior Subordinated Notes
Basis spread on variable rate		1.75%
Coal City Capital Trust I | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						1.80%
Face Value			25,000			$ 25,000
Coal City Capital Trust I | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			25,774			$ 25,774
Basis spread on variable rate						1.80%
MB Financial Capital Trust II | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						1.40%
Face Value			35,000			$ 35,000
MB Financial Capital Trust II | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			36,083			$ 36,083
Basis spread on variable rate						1.40%
MB Financial Capital Trust III | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						1.50%
Face Value			10,000			$ 10,000
MB Financial Capital Trust III | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			10,310			$ 10,310
Basis spread on variable rate						1.50%
MB Financial Capital Trust IV | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						1.52%
Face Value			20,000			$ 20,000
MB Financial Capital Trust IV | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			20,619			$ 20,619
Basis spread on variable rate						1.52%
MB Financial Capital Trust V | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						1.30%
Face Value			30,000			$ 30,000
MB Financial Capital Trust V | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			30,928			$ 30,928
Basis spread on variable rate						1.30%
MB Financial Capital Trust VI | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						1.30%
Face Value			22,500			$ 22,500
MB Financial Capital Trust VI | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			23,196			$ 23,196
Basis spread on variable rate						1.30%
FOBB Statutory Trust III | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						2.80%
Face Value			5,000			$ 5,000
FOBB Statutory Trust III | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			5,155			$ 5,155
Basis spread on variable rate						2.80%
TAYC Capital Trust II
Investment Owned, Balance [Abstract]
Purchase accounting adjustments discount			6,200			$ 6,200
TAYC Capital Trust II | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						2.68%
Face Value			40,000			$ 40,000
TAYC Capital Trust II | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			41,238			$ 41,238
Basis spread on variable rate						2.68%
American Chartered Statutory Trust II | Trust Preferred Securities
Junior Subordinated Notes
Basis spread on variable rate						2.75%
Face Value			10,000			$ 10,000
American Chartered Statutory Trust II | Junior Subordinated Notes
Junior Subordinated Notes
Principal balance			10,310			$ 10,310
Basis spread on variable rate						2.75%
American Chartered Statutory Trust I and American Chartered Statutory Trust II
Investment Owned, Balance [Abstract]
Purchase accounting adjustments discount			$ 2,600			$ 2,600
American Chartered Statutory Trust I | Trust Preferred Securities
Junior Subordinated Notes
Face Value	$ 20,000
Investment Owned, Balance [Abstract]
Loss on extinguishment of debt				$ 3,100
American Chartered Statutory Trust I | London Interbank Offered Rate (LIBOR) | Junior Subordinated Notes
Junior Subordinated Notes
Basis spread on variable rate	3.60%

XML

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Commitments [Abstract]
Maximum maturity period for letters of credit (in years)	5 years
Increase (decrease) in maximum potential amount of future payments under letters of credit	$ 3,400
Dollar amount of letters of credit outstanding	166,700	$ 163,300
Letters of credit issued or renewed	77,200
Capital expenditure commitments outstanding	$ 3,200
State of Illinois | States and political subdivisions
Concentrations of credit risk
Concentration risk	20.00%
Home equity lines
Long-term Purchase Commitment [Line Items]
Dollar amount of line of credit outstanding	$ 185,528	203,922
Other commitments
Long-term Purchase Commitment [Line Items]
Dollar amount of line of credit outstanding	4,084,835	4,073,044
Standby
Long-term Purchase Commitment [Line Items]
Dollar amount of line of credit outstanding	165,960	161,014
Commercial
Long-term Purchase Commitment [Line Items]
Dollar amount of line of credit outstanding	$ 756	$ 2,248

XML

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	$ 1,647,260	$ 1,408,326
Marketable equity securities	10,922	0
Loans held for sale	423,367	548,578
Loans	13,719,244	13,846,318
Mortgage servicing rights	296,629	276,279
Derivative financial instruments	46,679	17,540
Derivative financial instruments	17,863	27,947
U.S. Government sponsored agencies and enterprises
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		23,007
States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		379,325
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		852,699
Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		72,035
Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		70,197
Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		11,063
Recurring basis
Financial assets and financial liabilities measured at fair value on a recurring basis
Loans held for sale	423,367	548,578
Loans	36,347	40,531
Assets held in trust for deferred compensation	24,300	21,410
Other liabilities	24,300	21,410
Derivative financial instruments	52,572	40,296
Recurring basis | U.S. Government sponsored agencies and enterprises
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	5,026	23,007
Recurring basis | States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	350,061	379,325
Recurring basis | Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	1,205,579	852,699
Recurring basis | Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	63,424	72,035
Recurring basis | Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	23,170	70,197
Recurring basis | Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		11,063
Marketable equity securities	10,922
Recurring basis | Mortgage servicing rights
Financial assets and financial liabilities measured at fair value on a recurring basis
Mortgage servicing rights	296,629	276,279
Recurring basis | Derivative financial instruments
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative financial instruments	52,418	31,499
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	11,063
Marketable equity securities	10,922
Loans held for sale	0	0
Loans	0	0
Assets held in trust for deferred compensation	24,300	21,410
Derivative financial instruments	482	389
Other liabilities	24,300	21,410
Derivative financial instruments	1,217	1,072
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government sponsored agencies and enterprises
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		11,063
Marketable equity securities	10,922
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights
Financial assets and financial liabilities measured at fair value on a recurring basis
Mortgage servicing rights	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative financial instruments
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative financial instruments	482	389
Recurring basis | Significant Other Observable Inputs (Level 2)
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	1,646,918	1,396,900
Marketable equity securities	0
Loans held for sale	423,367	548,578
Loans	36,347	40,531
Assets held in trust for deferred compensation	0	0
Derivative financial instruments	51,659	29,539
Other liabilities	0	0
Derivative financial instruments	51,355	39,224
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government sponsored agencies and enterprises
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	5,026	23,007
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	349,732	378,996
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	1,205,566	852,665
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	63,424	72,035
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	23,170	70,197
Recurring basis | Significant Other Observable Inputs (Level 2) | Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		0
Marketable equity securities	0
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage servicing rights
Financial assets and financial liabilities measured at fair value on a recurring basis
Mortgage servicing rights	0	0
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative financial instruments
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative financial instruments	51,659	29,539
Recurring basis | Significant Unobservable Inputs (Level 3)
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	342	363
Marketable equity securities	0
Loans held for sale	0	0
Loans	0	0
Assets held in trust for deferred compensation	0	0
Derivative financial instruments	277	1,571
Other liabilities	0	0
Derivative financial instruments	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Government sponsored agencies and enterprises
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	329	329
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	13	34
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale		0
Marketable equity securities	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights
Financial assets and financial liabilities measured at fair value on a recurring basis
Mortgage servicing rights	296,629	276,279
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative financial instruments
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative financial instruments	$ 277	$ 1,571

XML

Fair Value Measurements - Unobservable Inputs Used In Fair Value Measurement (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	$ 1,647,260,000	$ 1,408,326,000
Mortgage servicing rights	296,629,000	276,279,000
Derivative financial instruments	46,679,000	17,540,000
Significant Unobservable Inputs (Level 3) | Recurring basis
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	342,000	363,000
Derivative financial instruments	$ 277,000	$ 1,571,000
Discounted cash flows | Credit assumption | Significant Unobservable Inputs (Level 3) | Recurring basis | States and political subdivisions | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Debt securities, available for sale, measurement input	0.40	0.40
Discounted cash flows | Credit assumption | Significant Unobservable Inputs (Level 3) | Recurring basis | States and political subdivisions | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Debt securities, available for sale, measurement input	0.45	0.45
Discounted cash flows | Constant pre-payment rates (CPR) | Significant Unobservable Inputs (Level 3) | Recurring basis | Residential mortgage-backed securities | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Debt securities, available for sale, measurement input	0.01	0.01
Discounted cash flows | Constant pre-payment rates (CPR) | Significant Unobservable Inputs (Level 3) | Recurring basis | Residential mortgage-backed securities | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Debt securities, available for sale, measurement input	0.03	0.03
Discounted cash flows | Constant pre-payment rates (CPR) | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement input	0.0630	0.0670
Discounted cash flows | Constant pre-payment rates (CPR) | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement input	0.0671	0.0780
Discounted cash flows | Discount rate | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement input	0.0953	0.0953
Discounted cash flows | Discount rate | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement input	0.1107	0.1106
Discounted cash flows | Maturity (months) | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, term	326 months	324 months
Discounted cash flows | Maturity (months) | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, term	358 months	358 months
Discounted cash flows | Delinquency rate | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement input	0.0219	0.0242
Discounted cash flows | Delinquency rate | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement input	0.0488	0.0530
Discounted cash flows | Costs to service | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement inputs, value	$ 67	$ 67
Discounted cash flows | Costs to service | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement inputs, value	227	227
Discounted cash flows | Additive delinquent costs to service | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement inputs, value	175	175
Discounted cash flows | Additive delinquent costs to service | Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Servicing asset, measurement inputs, value	$ 1,000	$ 1,000
Sales cash flows | Expected closing ratio | Significant Unobservable Inputs (Level 3) | Recurring basis | Derivative financial instruments | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative instrument, measurement input	0.70	0.70
Sales cash flows | Expected closing ratio | Significant Unobservable Inputs (Level 3) | Recurring basis | Derivative financial instruments | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative instrument, measurement input	0.95	0.95
Sales cash flows | Expected delivery price | Significant Unobservable Inputs (Level 3) | Recurring basis | Derivative financial instruments | Minimum
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative instrument, measurement input	0.009812	0.009738
Sales cash flows | Expected delivery price | Significant Unobservable Inputs (Level 3) | Recurring basis | Derivative financial instruments | Maximum
Financial assets and financial liabilities measured at fair value on a recurring basis
Derivative instrument, measurement input	0.01064600	0.01068700

XML

Fair Value Measurements - Assumptions Used In Measuring Fair Value of Mortgage Servicing Rights (Details) - Mortgage servicing rights	6 Months Ended
	Jun. 30, 2018 USD ($)
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Impact on fair value of 10% adverse change, CPR	$ (8,581,000)
Impact on fair value of 20% adverse change, CPR	(16,741,000)
Impact on fair value of 10% adverse change, discount rate	(12,630,000)
Impact on fair value of 20% adverse change, discount rate	(24,245,000)
Impact on fair value of 10% adverse change, delinquency rate	(3,657,000)
Impact on fair value of 20% adverse change, delinquency rate	(6,023,000)
Impact on fair value of 10% adverse change, costs to service	(5,534,000)
Impact on fair value of 20% adverse change, costs to service	$ (11,067,000)
Weighted average
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Weighted average CPR	6.49%
Weighted average discount rate	9.83%
Weighted average delinquency rate	4.65%
Weighted average costs to service	$ 91.39

XML

Fair Value Measurements - Level 3 Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Investment Securities
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance, beginning of period	$ 363	$ 544
Purchases	0	0
Originations	0	0
Included in earnings	0	0
Principal payments	(21)	(82)
Sales	0	0
Balance, ending of period	342	462
Mortgage Servicing Rights
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance, beginning of period	276,279	238,011
Purchases	135	786
Originations	25,041	27,568
Included in earnings	(4,826)	(16,677)
Principal payments	0	0
Sales	0	0
Balance, ending of period	296,629	249,688
Derivatives
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance, beginning of period	1,571	3,160
Purchases	0	0
Originations	0	0
Included in earnings	(1,294)	(461)
Principal payments	0	0
Sales	0	0
Balance, ending of period	$ 277	$ 2,699

XML

Fair Value Measurements - Additional Information (Details)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair value assumption, allowance for impaired real estate loans percentage	100.00%
Maximum maturity period of short-term borrowings where carrying value approximates fair value (in days)	90 days
Minimum maturity period of short-term borrowings where fair value is based on discounted value of contractual cash flows (in days)	90 days

XML

Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring basis - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial Assets:
Impaired loans	$ 62,089	$ 60,569
Foreclosed assets	14,420	15,113
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets:
Impaired loans	0	0
Foreclosed assets	0	0
Significant Other Observable Inputs (Level 2)
Financial Assets:
Impaired loans	0	0
Foreclosed assets	0	0
Significant Unobservable Inputs (Level 3)
Financial Assets:
Impaired loans	62,089	60,569
Foreclosed assets	$ 14,420	$ 15,113
Significant Unobservable Inputs (Level 3) | Minimum
Financial Assets:
Appraisal adjustment impaired loans (as a percent)	5.00%	5.00%
Appraisal adjustment foreclosed assets (as a percent)	5.00%	5.00%
Significant Unobservable Inputs (Level 3) | Maximum
Financial Assets:
Appraisal adjustment impaired loans (as a percent)	10.00%	10.00%
Appraisal adjustment foreclosed assets (as a percent)	10.00%	10.00%

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Fair Value Measurements - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial Assets:
Cash and due from banks	$ 373,448	$ 397,880
Interest earning deposits with banks	119,672	181,341
Investment securities available for sale	1,647,260	1,408,326
Investment securities held to maturity	940,203	992,455
Marketable equity securities	10,922	0
Non-marketable securities - FHLB and FRB stock	115,453	114,111
Loans held for sale	423,367	548,578
Derivative financial instruments	46,679	17,540
Financial Liabilities:
Non-interest bearing deposits	6,347,208	6,381,512
Interest bearing deposits	8,575,455	8,576,866
Short-term borrowings	651,462	861,039
Junior subordinated notes issued to capital trusts	194,450	211,494
Derivative financial instruments	17,863	27,947
Recurring basis
Financial Assets:
Loans held for sale	423,367	548,578
Financial Liabilities:
Derivative financial instruments	52,572	40,296
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets:
Cash and due from banks	373,448	397,880
Interest earning deposits with banks	119,672	181,341
Investment securities available for sale	0	11,063
Investment securities held to maturity	0	0
Marketable equity securities	10,922
Non-marketable securities - FHLB and FRB stock	0	0
Loans held for sale	0	0
Loans, net	0	0
Accrued interest receivable	65,129	63,589
Derivative financial instruments	482	389
Financial Liabilities:
Non-interest bearing deposits	6,347,208	6,381,512
Interest bearing deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Junior subordinated notes issued to capital trusts	0	0
Accrued interest payable	7,058	6,458
Derivative financial instruments	1,217	1,072
Recurring basis | Significant Other Observable Inputs (Level 2)
Financial Assets:
Cash and due from banks	0	0
Interest earning deposits with banks	0	0
Investment securities available for sale	1,646,918	1,396,900
Investment securities held to maturity	940,203	992,455
Marketable equity securities	0
Non-marketable securities - FHLB and FRB stock	0	0
Loans held for sale	423,367	548,578
Loans, net	36,347	40,531
Accrued interest receivable	0	0
Derivative financial instruments	51,659	29,539
Financial Liabilities:
Non-interest bearing deposits	0	0
Interest bearing deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Junior subordinated notes issued to capital trusts	0	0
Accrued interest payable	0	0
Derivative financial instruments	51,355	39,224
Recurring basis | Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	0	0
Interest earning deposits with banks	0	0
Investment securities available for sale	342	363
Investment securities held to maturity	0	0
Marketable equity securities	0
Non-marketable securities - FHLB and FRB stock	115,453	114,111
Loans held for sale	0	0
Loans, net	13,692,182	13,947,861
Accrued interest receivable	0	0
Derivative financial instruments	277	1,571
Financial Liabilities:
Non-interest bearing deposits	0	0
Interest bearing deposits	8,563,444	8,569,368
Short-term borrowings	651,328	860,676
Long-term borrowings	731,194	513,725
Junior subordinated notes issued to capital trusts	163,817	170,965
Accrued interest payable	0	0
Derivative financial instruments	0	0
Carrying Amount
Financial Assets:
Cash and due from banks	373,448	397,880
Interest earning deposits with banks	119,672	181,341
Investment securities available for sale	1,647,260	1,408,326
Investment securities held to maturity	923,036	959,082
Marketable equity securities	10,922
Non-marketable securities - FHLB and FRB stock	115,453	114,111
Loans held for sale	423,367	548,578
Loans, net	13,657,455	13,808,352
Accrued interest receivable	65,129	63,589
Derivative financial instruments	52,418	31,499
Financial Liabilities:
Non-interest bearing deposits	6,347,208	6,381,512
Interest bearing deposits	8,575,455	8,576,866
Short-term borrowings	651,462	861,039
Long-term borrowings	730,292	505,158
Junior subordinated notes issued to capital trusts	194,450	211,494
Accrued interest payable	7,058	6,458
Derivative financial instruments	52,572	40,296
Estimated Fair Value
Financial Assets:
Cash and due from banks	373,448	397,880
Interest earning deposits with banks	119,672	181,341
Investment securities available for sale	1,647,260	1,408,326
Investment securities held to maturity	940,203	992,455
Marketable equity securities	10,922
Non-marketable securities - FHLB and FRB stock	115,453	114,111
Loans held for sale	423,367	548,578
Loans, net	13,728,529	13,988,392
Accrued interest receivable	65,129	63,589
Derivative financial instruments	52,418	31,499
Financial Liabilities:
Non-interest bearing deposits	6,347,208	6,381,512
Interest bearing deposits	8,563,444	8,569,368
Short-term borrowings	651,328	860,676
Long-term borrowings	731,194	513,725
Junior subordinated notes issued to capital trusts	163,817	170,965
Accrued interest payable	7,058	6,458
Derivative financial instruments	$ 52,572	$ 40,296

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Stock Incentive Plans - Impact of Share-Based Payment Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total compensation expense for share-based payment plans during the period	$ 4,695	$ 4,443	$ 9,146	$ 8,924
Amount of related income tax benefit recognized in income	$ 2,599	$ 1,916	$ 3,953	$ 6,338

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Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions			6 Months Ended		12 Months Ended
	Aug. 18, 2014	May 28, 2014	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock-based compensation
Grants beyond threshold limit count numerator (in shares)		2
Omnibus Incentive Plan
Stock-based compensation
Additional number of share authorized (in shares)		3,100,000
Total number of shares authorized (in shares)		11,400,000
Percentage of shares authorized for issuance		10.00%
Vesting period		3 years
Shares available for future grant (in shares)			2,114,097
Unrecognized compensation cost related to nonvested share-based compensation			$ 30.9
Period for recognition			2 years
Omnibus Incentive Plan | Taylor Capital Group, Inc.
Stock-based compensation
Total number of shares authorized (in shares)	13,800,000
Increase in amount of shares authorized (in shares)	2,400,000
Stock options
Stock-based compensation
Award requisite service period			4 years
Expiration term of options			10 years
Intrinsic value of options exercised			$ 8.3	$ 3.9
Stock options | Director
Stock-based compensation
Vesting period			5 years
Maximum percentage of directors fees with option to be received in equity based incentive awards			70.00%
Period of restriction for sale of shares vested			6 months
Restricted shares
Stock-based compensation
Intrinsic value of restricted shares that vested			$ 12.8	$ 15.5
Restricted shares | Minimum
Stock-based compensation
Vesting period			2 years
Restricted shares | Maximum
Stock-based compensation
Vesting period			4 years
Restricted stock | Director
Stock-based compensation
Vesting period			1 year
Maximum percentage of directors fees with option to be received in equity based incentive awards			100.00%
Performance-based restricted stock units
Stock-based compensation
Vesting period			3 years
Restricted stock issued (in shares)			71,567		65,476	80,780	71,560
Percentage of shares earned to number of units issued			0.00%
Performance based restricted units performance period			3 years
Share based compensation restricted stock units multiplier			100.00%
Performance-based restricted stock units | Minimum
Stock-based compensation
Percentage of shares earned to number of units issued			0.00%
Performance-based restricted stock units | Maximum
Stock-based compensation
Percentage of shares earned to number of units issued			175.00%

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Stock Incentive Plans - Summary of Impact of Share-Based Payment Plans (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Number of Options
Outstanding, beginning balance (in shares)	1,721,978
Granted (in shares)	160,644
Exercised (in shares)	(380,567)
Expired (in shares)	(1,092)
Forfeited or cancelled (in shares)	(9,411)
Outstanding, ending balance (in shares)	1,491,552	1,721,978
Options exercisable (in shares)	989,220
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 29.10
Granted (in dollars per share)	41.14
Exercised (in dollars per share)	26.39
Expired (in dollars per share)	39.28
Forfeited or cancelled (in dollars per share)	28.93
Outstanding, ending balance (in dollars per share)	31.08	$ 29.10
Options exercisable (in dollars per share)	$ 28.19
Weighted Average Remaining Contractual Term (In Years)
Outstanding, balance (in years)	6 years 1 month 10 days	5 years 2 months 10 days
Options exercisable (in years)	4 years 11 months 28 days
Aggregate Intrinsic Value (in thousands)
Options outstanding	$ 23,303
Options exercisable	$ 18,313

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Stock Incentive Plans - Assumptions Used For Options Granted (Details) - Stock options	6 Months Ended
	Jun. 30, 2018 $ / shares
Fair value assumptions
Risk-free interest rate	2.80%
Expected volatility of Company’s stock	26.13%
Expected dividend yield	2.06%
Expected life of options	5 years 10 months 20 days
Weighted average fair value per option of options granted during the year (in dollars per share)	$ 9.65

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Stock Incentive Plans - Changes in Restricted Shares and Units (Details) - Restricted shares	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Number of Shares and Units
Shares and units outstanding, beginning balance (in shares) | shares	973,201
Granted (in shares) | shares	414,895
Vested (in shares) | shares	(303,774)
Forfeited or cancelled (in shares) | shares	(88,806)
Shares and units outstanding, ending balance (in shares) | shares	995,516
Weighted Average Grant Date Fair Value
Shares and units outstanding, beginning balance (in dollars per share) | $ / shares	$ 37.03
Granted (in dollars per share) | $ / shares	41.45
Vested (in dollars per share) | $ / shares	34.98
Forfeited or cancelled (in dollars per share) | $ / shares	34.86
Shares and units outstanding, ending balance (in dollars per share) | $ / shares	$ 39.69

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Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Net amount payable under interest rate swap	$ 1	$ 1
Interest rate swap credit risk exposure	17,700
Derivative liability, notional amount	2,959,474	$ 3,591,647
Commercial loan interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative liability, notional amount	$ 32

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Derivative Financial Instruments - Summary of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Derivative [Line Items]
Asset Derivatives, Notional Amount	$ 2,999,537		$ 2,999,537		$ 3,142,730
Asset Derivatives, Estimated Fair Value	52,418		52,418		31,499
Liability Derivatives, Notional Amount	2,959,474		2,959,474		3,591,647
Liability Derivatives, Estimated Fair Value	(52,572)		(52,572)		(40,296)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	2,138	$ 2,250	4,048	$ (5,300)
Derivative instruments designated as hedges of fair value | Interest rate swap contracts
Derivative [Line Items]
Asset Derivatives, Notional Amount	0		0		0
Asset Derivatives, Estimated Fair Value	0		0		0
Liability Derivatives, Notional Amount	32		32		58
Liability Derivatives, Estimated Fair Value	(1)		(1)		(1)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	1	1	1	2
Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	2,999,537		2,999,537		3,142,730
Asset Derivatives, Estimated Fair Value	52,418		52,418		31,499
Liability Derivatives, Notional Amount	2,959,442		2,959,442		3,591,589
Liability Derivatives, Estimated Fair Value	(52,571)		(52,571)		(40,295)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	2,137	2,249	4,047	(5,302)
Stand-alone derivative instruments | Interest rate swap contracts
Derivative [Line Items]
Asset Derivatives, Notional Amount	1,732,420		1,732,420		1,563,109
Asset Derivatives, Estimated Fair Value	34,477		34,477		21,217
Liability Derivatives, Notional Amount	1,732,420		1,732,420		1,563,109
Liability Derivatives, Estimated Fair Value	(34,477)		(34,477)		(21,217)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	1,913	1,624	3,628	3,473
Stand-alone derivative instruments | Interest rate swap contracts | Mortgage Banking
Derivative [Line Items]
Asset Derivatives, Notional Amount	270,000		270,000		458,000
Asset Derivatives, Estimated Fair Value	10,983		10,983		4,479
Liability Derivatives, Notional Amount	320,000		320,000		1,008,000
Liability Derivatives, Estimated Fair Value	(11,031)		(11,031)		(14,360)
Stand-alone derivative instruments | Interest rate options contracts
Derivative [Line Items]
Asset Derivatives, Notional Amount	510,228		510,228		372,927
Asset Derivatives, Estimated Fair Value	3,818		3,818		1,887
Liability Derivatives, Notional Amount	510,157		510,157		372,927
Liability Derivatives, Estimated Fair Value	(3,818)		(3,818)		(1,887)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	0	0	0	0
Stand-alone derivative instruments | Foreign exchange contracts
Derivative [Line Items]
Asset Derivatives, Notional Amount	64,661		64,661		40,713
Asset Derivatives, Estimated Fair Value	2,309		2,309		1,934
Liability Derivatives, Notional Amount	53,842		53,842		34,029
Liability Derivatives, Estimated Fair Value	(2,006)		(2,006)		(1,759)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	212	197	255	260
Stand-alone derivative instruments | Spot foreign exchange contracts
Derivative [Line Items]
Asset Derivatives, Notional Amount	10,135		10,135		1,424
Asset Derivatives, Estimated Fair Value	18		18		23
Liability Derivatives, Notional Amount	11,823		11,823		24
Liability Derivatives, Estimated Fair Value	(23)		(23)		0
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	884	729	1,617	1,407
Stand-alone derivative instruments | Interest rate swaptions contracts | Mortgage Banking
Derivative [Line Items]
Asset Derivatives, Notional Amount	240,000		240,000		0
Asset Derivatives, Estimated Fair Value	54		54		0
Liability Derivatives, Notional Amount	0		0		0
Liability Derivatives, Estimated Fair Value	0		0		0
Stand-alone derivative instruments | Treasury futures contracts | Mortgage Banking
Derivative [Line Items]
Asset Derivatives, Notional Amount	20,000		20,000		28,000
Asset Derivatives, Estimated Fair Value	66		66		39
Liability Derivatives, Notional Amount	32,500		32,500		30,000
Liability Derivatives, Estimated Fair Value	(105)		(105)		(222)
Stand-alone derivative instruments | TBA mortgage securities | Mortgage Banking
Derivative [Line Items]
Asset Derivatives, Notional Amount	50,000		50,000		15,000
Asset Derivatives, Estimated Fair Value	359		359		16
Liability Derivatives, Notional Amount	0		0		100,000
Liability Derivatives, Estimated Fair Value	0		0		(63)
Stand-alone derivative instruments | Forward loan sale commitments | Mortgage Banking
Derivative [Line Items]
Asset Derivatives, Notional Amount	36,000		36,000		259,000
Asset Derivatives, Estimated Fair Value	57		57		333
Liability Derivatives, Notional Amount	298,700		298,700		483,500
Liability Derivatives, Estimated Fair Value	(1,111)		(1,111)		(787)
Stand-alone derivative instruments | Interest rate lock commitments | Mortgage Banking
Derivative [Line Items]
Asset Derivatives, Notional Amount	66,093		66,093		404,557
Asset Derivatives, Estimated Fair Value	277		277		1,571
Liability Derivatives, Notional Amount	0		0		0
Liability Derivatives, Estimated Fair Value	0		0		$ 0
Stand-alone derivative instruments | Mortgage related derivatives
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	$ (872)	$ (301)	$ (1,453)	$ (10,442)

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Derivative Financial Instruments - Financial Instruments Eligible for Offset In Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial Assets
Financial Assets, Gross Amount Recognized	$ 46,679	$ 17,540
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	46,679	17,540
Repurchase Agreements, Financial Assets, Gross Amount Recognized	0	0
Repurchase Agreements, Financial Assets, Gross Amount Offset	0	0
Repurchase Agreements, Financial Assets, Net Amount Recognized	0	0
Total Financial Assets, Gross Amount Recognized	46,679	17,540
Total Financial Assets, Gross Amount Offset	0	0
Total Financial Assets, Net Amount Recognized	46,679	17,540
Financial Assets, Financial Instruments	(14,315)	(14,719)
Financial Assets, Collateral	(6,195)	0
Financial Assets, Net Amount	26,169	2,821
Repurchase Agreements, Financial Assets, Financial Instruments	0	0
Repurchase Agreements, Financial Assets, Collateral	0	0
Repurchase Agreements, Financial Assets, Net Amount	0	0
Total Financial Assets, Financial Instruments	(14,315)	(14,719)
Total Financial Assets, Collateral	(6,195)	0
Total Financial Assets, Net Amount	26,169	2,821
Financial Liabilities
Financial Liabilities, Gross Amount Recognized	17,863	27,947
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	17,863	27,947
Repurchase Agreements, Financial Liabilities, Gross Amount Recognized	244,462	232,789
Repurchase Agreements, Financial Liabilities, Gross Amount Offset	0	0
Repurchase Agreements, Financial Liabilities, Net Amount Recognized	244,462	232,789
Total Financial Liabilities, Gross Amount Recognized	262,325	260,736
Total Financial Liabilities, Gross Amount Offset	0	0
Total Financial Liabilities, Net Amount Recognized	262,325	260,736
Financial Liabilities, Financial Instruments	(14,315)	(14,719)
Financial Liabilities, Collateral	(690)	(13,223)
Financial Liabilities, Net Amount	2,858	5
Repurchase Agreements, Financial Liabilities, Financial Instruments	0	0
Repurchase Agreements, Financial Liabilities, Collateral	(244,462)	(232,789)
Repurchase Agreements, Financial Liabilities, Net Amount	0	0
Total Financial Liabilities, Financial Instruments	(14,315)	(14,719)
Total Financial Liabilities, Collateral	(245,152)	(246,012)
Total Financial Liabilities, Net Amount	2,858	5
Counterparty A
Financial Assets
Financial Assets, Net Amount Recognized	16,943	6,068
Financial Assets, Financial Instruments	(11,030)	(6,068)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	5,913	0
Financial Liabilities
Financial Liabilities, Net Amount Recognized	11,030	13,807
Financial Liabilities, Financial Instruments	(11,030)	(6,068)
Financial Liabilities, Collateral	0	(7,739)
Financial Liabilities, Net Amount	0	0
Counterparty B
Financial Assets
Financial Assets, Net Amount Recognized	9,885	3,261
Financial Assets, Financial Instruments	(2,262)	(3,261)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	7,623	0
Financial Liabilities
Financial Liabilities, Net Amount Recognized	2,262	5,595
Financial Liabilities, Financial Instruments	(2,262)	(3,261)
Financial Liabilities, Collateral	0	(2,334)
Financial Liabilities, Net Amount	0	0
Counterparty C
Financial Assets
Financial Assets, Net Amount Recognized	3,253	5,285
Financial Assets, Financial Instruments	(492)	(3,640)
Financial Assets, Collateral	(2,761)	0
Financial Assets, Net Amount	0	1,645
Financial Liabilities
Financial Liabilities, Net Amount Recognized	492	3,640
Financial Liabilities, Financial Instruments	(492)	(3,640)
Financial Liabilities, Collateral	0	0
Financial Liabilities, Net Amount	0	0
Other counterparties
Financial Assets
Financial Assets, Net Amount Recognized	16,598	2,926
Financial Assets, Financial Instruments	(531)	(1,750)
Financial Assets, Collateral	(3,434)	0
Financial Assets, Net Amount	12,633	1,176
Financial Liabilities
Financial Liabilities, Net Amount Recognized	4,079	4,905
Financial Liabilities, Financial Instruments	(531)	(1,750)
Financial Liabilities, Collateral	(690)	(3,150)
Financial Liabilities, Net Amount	2,858	5
Interest rate swap contracts, caps and floors
Financial Assets
Financial Assets, Gross Amount Recognized	33,823	11,659
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	33,823	11,659
Financial Liabilities
Financial Liabilities, Gross Amount Recognized	4,649	11,562
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	4,649	11,562
Foreign exchange contracts
Financial Assets
Financial Assets, Gross Amount Recognized	1,338	1,013
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	1,338	1,013
Financial Liabilities
Financial Liabilities, Gross Amount Recognized	966	953
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	966	953
Mortgage related derivatives
Financial Assets
Financial Assets, Gross Amount Recognized	11,518	4,868
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	11,518	4,868
Financial Liabilities
Financial Liabilities, Gross Amount Recognized	12,248	15,432
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	$ 12,248	$ 15,432

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Operating Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of reportable operating segments | segment			3
Net interest income	$ 159,069	$ 148,994	$ 312,450	$ 292,037
Provision for credit losses	6,219	9,699	13,727	13,433
Non-interest income	88,306	91,170	181,108	183,620
Non-interest expense	192,992	166,212	360,878	322,554
Income tax expense	9,631	19,787	23,663	40,667
Net income	38,533	44,466	95,290	99,003
Total assets	19,966,557	19,965,057	19,966,557	19,965,057	$ 20,086,940
Banking
Segment Reporting Information [Line Items]
Net interest income	146,614	135,982	287,085	267,431
Provision for credit losses	5,746	8,890	13,325	12,417
Non-interest income	46,716	43,491	89,808	86,699
Non-interest expense	124,682	117,022	240,510	225,538
Income tax expense	15,009	15,662	28,617	31,322
Net income	47,893	37,899	94,441	84,853
Total assets	16,581,205	16,320,111	16,581,205	16,320,111
Pretax merger related costs	5,500	7,200	5,500	7,400
Leasing
Segment Reporting Information [Line Items]
Net interest income	2,349	2,345	4,831	4,614
Provision for credit losses	500	410	476	275
Non-interest income	22,651	18,180	47,507	39,643
Non-interest expense	15,212	13,436	30,708	27,280
Income tax expense	1,052	2,525	1,808	6,644
Net income	8,236	4,154	19,346	10,058
Total assets	1,354,940	1,275,386	1,354,940	1,275,386
Mortgage Banking
Segment Reporting Information [Line Items]
Net interest income	10,106	10,667	20,534	19,992
Provision for credit losses	(27)	399	(74)	741
Non-interest income	18,939	29,499	43,793	57,278
Non-interest expense	53,098	35,754	89,660	69,736
Income tax expense	(6,430)	1,600	(6,762)	2,701
Net income	(17,596)	2,413	(18,497)	4,092
Total assets	2,030,412	$ 2,369,560	2,030,412	$ 2,369,560
Pretax merger related costs	$ 19,500		$ 20,100

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Preferred Stock (Details) $ / shares in Units, $ in Thousands				3 Months Ended	6 Months Ended	12 Months Ended
	Feb. 15, 2018 USD ($) $ / shares shares	Nov. 22, 2017 $ / shares shares	Aug. 18, 2014 $ / shares shares	Mar. 31, 2018	Jun. 30, 2018 USD ($) $ / shares shares	Dec. 31, 2017 $ / shares shares
Business Acquisition [Line Items]
Redemption of preferred stock | $					$ (100,000)
Series A Preferred Stock
Business Acquisition [Line Items]
Preferred stock, shares outstanding (in shares) | shares					0	4,000,000
Preferred stock, liquidation preference per share (in dollars per share)					$ 25	$ 25
Preferred stock, dividend rate (percent)				8.00%	8.00%	8.00%
Stock redeemed or called during period (in shares) | shares	4,000,000
Preferred stock, redemption price per share (in dollars per share)	$ 25.00
Redemption of preferred stock | $	$ 100,000
Preferred stock redemption premium | $	$ 15,300
Series A Preferred Stock | Taylor Capital Merger
Business Acquisition [Line Items]
Stock conversion			1
Preferred stock, shares outstanding (in shares) | shares			4,000,000
Preferred stock, liquidation preference per share (in dollars per share)			$ 25
Preferred stock, dividend rate (percent)			8.00%
Series C Preferred Stock, Depository Shares
Business Acquisition [Line Items]
Preferred stock, liquidation preference per share (in dollars per share)		$ 25
Preferred stock, dividend rate (percent)		6.00%
Preferred stock, redemption price per share (in dollars per share)		$ 25
New issues of stock during period (in shares) | shares		8,000,000
Interest in preferred stock					0.025%
Series C Preferred Stock
Business Acquisition [Line Items]
Preferred stock, shares outstanding (in shares) | shares					200,000	200,000
Preferred stock, liquidation preference per share (in dollars per share)		$ 1,000			$ 1,000	$ 1,000
Preferred stock, dividend rate (percent)					6.00%	6.00%

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Definitive Merger Agreement (Details) - $ / shares		6 Months Ended	12 Months Ended
	May 20, 2018	Jun. 30, 2018	Dec. 31, 2017
Business Combination, Separately Recognized Transactions [Line Items]
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Preferred stock, par or stated value per share (in dollars per share)		$ 0.01	$ 0.01
Series C Preferred Stock
Business Combination, Separately Recognized Transactions [Line Items]
Preferred stock, dividend rate (percent)		6.00%	6.00%
Merger With Fifth Third Bancorp
Business Combination, Separately Recognized Transactions [Line Items]
Number of shares called by each right (in shares)	1.450
Cash paid per share (in dollars per share)	$ 5.54

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Subsequent Events (Details) - USD ($) $ in Thousands			6 Months Ended
	Sep. 17, 2018	Aug. 06, 2018	Jun. 30, 2018	Jun. 30, 2017
Subsequent Event [Line Items]
Liquidation of trust preferred securities			$ 20,619	$ 0
Coal City Capital Trust I | Junior Subordinated Notes
Subsequent Event [Line Items]
Basis spread on variable rate			1.80%
TAYC Capital Trust II | Junior Subordinated Notes
Subsequent Event [Line Items]
Basis spread on variable rate			2.68%
Trust Preferred Securities | Coal City Capital Trust I
Subsequent Event [Line Items]
Basis spread on variable rate			1.80%
Trust Preferred Securities | TAYC Capital Trust II
Subsequent Event [Line Items]
Basis spread on variable rate			2.68%
Subsequent Event | Trust Preferred Securities | Coal City Capital Trust I
Subsequent Event [Line Items]
Liquidation of trust preferred securities		$ 25,000
Scenario, Forecast | Trust Preferred Securities | TAYC Capital Trust II
Subsequent Event [Line Items]
Liquidation of trust preferred securities	$ 40,000