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 March 31, 2015

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, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting 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

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 75,123,683 shares of the Registrant’s common stock as of May 6, 2015.

1

MB FINANCIAL, INC.

FORM 10-Q

March 31, 2015

INDEX

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Changes in Stockholders’ Equity	7
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	67
Item 4.	Controls and Procedures	69
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	70
Item 1A.	Risk Factors	70
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 6.	Exhibits	70
	Signatures	71

2

PART I.        FINANCIAL INFORMATION

Item 1.   Financial Statements

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except per share data)

	(Unaudited)
	March 31, 2015			December 31, 2014
ASSETS
Cash and due from banks	$	248,840		$	256,804
Interest earning deposits with banks	52,212			55,277
Total cash and cash equivalents	301,052			312,081
Investment securities:
Securities available for sale, at fair value	1,589,424			1,654,752
Securities held to maturity, at amortized cost ($1,045,205 fair value at March 31, 2015 and $1,035,061 at December 31, 2014)	1,000,859			993,380
Non-marketable securities - FHLB and FRB stock	87,677			75,569
Total investment securities	2,677,960			2,723,701
Loans held for sale	686,838			737,209
Loans:
Total loans, excluding purchased credit impaired and covered loans	8,693,814			8,831,572
Purchased credit impaired and covered loans	227,514			251,645
Total loans	8,921,328			9,083,217
Less: Allowance for loan losses	113,412			110,026
Net loans	8,807,916			8,973,191
Lease investments, net	159,191			162,833
Premises and equipment, net	234,077			238,377
Cash surrender value of life insurance	134,401			133,562
Goodwill	711,521			711,521
Other intangibles	36,488			38,006
Mortgage servicing rights, at fair value	219,254			235,402
Other real estate owned, net	21,839			19,198
Other real estate owned related to FDIC-assisted transactions	17,890			19,328
Other assets	319,883			297,690
Total assets	$	14,328,310		$	14,602,099
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing	$	4,290,499		$	4,118,256
Interest bearing	6,729,002			6,872,686
Total deposits	11,019,501			10,990,942
Short-term borrowings	615,231			931,415
Long-term borrowings	85,477			82,916
Junior subordinated notes issued to capital trusts	185,874			185,778
Accrued expenses and other liabilities	363,934			382,762
Total liabilities	12,270,017			12,573,813
STOCKHOLDERS’ EQUITY
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at March 31, 2015 and December 31, 2014; Series A, 8% perpetual non-cumulative, 4,000,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, $25 liquidation value)	115,280			115,280
Common stock, ($0.01 par value; authorized 100,000,000 shares at March 31, 2015 and December 31, 2014; issued 75,355,257 shares at March 31, 2015 and 75,067,482 shares at December 31, 2014)	754			751
Additional paid-in capital	1,268,851			1,267,761
Retained earnings	651,178			629,677
Accumulated other comprehensive income	26,101			20,356
Less: 233,181 and 296,715 shares of treasury common stock, at cost, at March 31, 2015 and December 31, 2014, respectively	(5,277		)	(6,974		)
Controlling interest stockholders’ equity	2,056,887			2,026,851
Noncontrolling interest	1,406			1,435
Total stockholders’ equity	2,058,293			2,028,286
Total liabilities and stockholders’ equity	$	14,328,310		$	14,602,099

     See Accompanying Notes to Consolidated Financial Statements.

3

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three Months Ended
	March 31,
	2015			2014
Interest income:
Loans:
Taxable	$	98,846		$	53,946
Nontaxable	2,174			2,298
Investment securities:
Taxable	9,934			8,146
Nontaxable	9,113			8,067
Federal funds sold	—			5
Other interest earning accounts	62			113
Total interest income	120,129			72,575
Interest expense:
Deposits	4,645			3,769
Short-term borrowings	277			100
Long-term borrowings and junior subordinated notes	1,812			1,378
Total interest expense	6,734			5,247
Net interest income	113,395			67,328
Provision for credit losses	4,974			1,150
Net interest income after provision for credit losses	108,421			66,178
Non-interest income:
Lease financing, net	25,080			13,196
Mortgage banking revenue	24,544			59
Commercial deposit and treasury management fees	11,038			7,144
Trust and asset management fees	5,714			5,207
Card fees	3,927			2,701
Capital markets and international banking fees	1,928			978
Consumer and other deposit service fees	3,083			2,935
Brokerage fees	1,678			1,325
Loan service fees	1,485			965
Increase in cash surrender value of life insurance	839			827
Net (loss) gain on investment securities	(460		)	317
Net gain on sale of assets	4			7
Other operating income	2,408			951
Total non-interest income	81,268			36,612
Non-interest expenses:
Salaries and employee benefits	84,786			44,377
Occupancy and equipment	12,940			9,592
Computer services and telecommunication	8,904			5,084
Advertising and marketing	2,446			2,081
Professional and legal	2,670			1,779
Other intangibles amortization	1,518			1,240
Branch exit and facilities impairment charges	7,391			—
Net loss recognized on other real estate owned and other related	896			583
Prepayment fees on interest bearing liabilities	85			—
Other operating expenses	18,284			11,311
Total non-interest expenses	139,920			76,047
Income before income taxes	49,769			26,743
Income tax expense	15,658			6,774
Net income	34,111			19,969
Dividends on preferred shares	2,000			—
Net income available to common stockholders	$	32,111		$	19,969

4

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued)

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

	Three Months Ended
	March 31,
	2015		2014
Common share data:
Basic earnings per common share	$	0.43	$	0.37
Diluted earnings per common share	0.43		0.36
Weighted average common shares outstanding for basic earnings per common share	74,567,104		54,639,951
Diluted weighted average common shares outstanding for diluted earnings per common share	75,164,716		55,265,188

See Accompanying Notes to Consolidated Financial Statements.

5

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands) (Unaudited)

	Three Months Ended
	March 31,
	2015			2014
Net income	$	34,111		$	19,969
Unrealized holding gains on investment securities, net of reclassification adjustments	9,404			4,946
Reclassification adjustment for amortization of unrealized gains on investment securities transferred to held to maturity from available for sale	(402		)	(1,376		)
Reclassification adjustments for losses (gains) included in net income	460			(317		)
Other comprehensive income, before tax	9,462			3,253
Income tax expense related to items of other comprehensive income	(3,717		)	(1,274		)
Other comprehensive income, net of tax	5,745			1,979
Comprehensive income	$	39,856		$	21,948

See Accompanying Notes to Consolidated Financial Statements.

6

MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months EndedMarch 31, 2015 and 2014

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

	Preferred Stock		Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income, Net of Tax		Treasury Stock			Noncontrolling Interest			Total Stock- holders’ Equity
Balance at December 31, 2013	$	—	$	551	$	738,053		$	581,998		$	8,383	$	(3,747	)	$	1,444		$	1,326,682
Net income	—		—		—			19,969			—		—			70			20,039
Other comprehensive income, net of tax	—		—		—			—			1,979		—			—			1,979
Cash dividends declared on common shares ($0.12 per share)	—		—		—			(6,666		)	—		—			—			(6,666		)
Restricted common stock activity, net of tax	—		2		102			—			—		—			—			104
Stock option activity, net of tax	—		—		27			—			—		—			—			27
Repurchase of common shares in connection with
employee benefit plans and held in trust for
deferred compensation plan	—		—		51			—			—		(385		)	—			(334		)
Stock-based compensation expense	—		—		2,012			—			—		—			—			2,012
Distributions to noncontrolling interest	—		—		—			—			—		—			(63		)	(63		)
Balance at March 31, 2014	$	—	$	553	$	740,245		$	595,301		$	10,362	$	(4,132	)	$	1,451		$	1,343,780
Balance at December 31, 2014	$	115,280	$	751	$	1,267,761		$	629,677		$	20,356	$	(6,974	)	$	1,435		$	2,028,286
Net income	—		—		—			34,111			—		—			71			34,182
Other comprehensive income, net of tax	—		—		—			—			5,745		—			—			5,745
Cash dividends declared on preferred shares	—		—		—			(2,000		)	—		—			—			(2,000		)
Cash dividends declared on common shares ($0.14 per share)	—		—		—			(10,610		)	—		—			—			(10,610		)
Restricted common stock activity, net of tax	—		3		(2,744		)	—			—		2,876			—			135
Stock option activity, net of tax	—		—		35			—			—		—			—			35
Repurchase of common shares in connection with
employee benefit plans and held in trust for
deferred compensation plan	—		—		194			—			—		(1,179		)	—			(985		)
Stock-based compensation expense	—		—		3,605			—			—		—			—			3,605
Distributions to noncontrolling interest	—		—		—			—			—		—			(100		)	(100		)
Balance at March 31, 2015	$	115,280	$	754	$	1,268,851		$	651,178		$	26,101	$	(5,277	)	$	1,406		$	2,058,293

See Accompanying Notes to Consolidated Financial Statements.

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MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands) (Unaudited)

	Three Months Ended
	March 31,
	2015			2014
Cash Flows From Operating Activities
Net income	$	34,111		$	19,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment and leased equipment	14,737			13,653
Branch exit and facilities impairment charges	7,391			—
Compensation expense for share-based payment plans	3,605			2,012
Net gain on sales of premises and equipment and leased equipment	(167		)	(630		)
Amortization of other intangibles	1,518			1,240
Provision for credit losses	4,974			1,150
Deferred income tax expense	8,384			(1,406		)
Amortization of premiums and discounts on investment securities, net	11,231			11,110
Accretion of premiums and discounts on loans, net	(9,879		)	(550		)
Accretion of FDIC indemnification asset	(24		)	(31		)
Net loss (gain) on investment securities	460			(317		)
Proceeds from sale of loans held for sale	1,741,704			3,247
Origination of loans held for sale	(1,701,005		)	(3,342		)
Net gain on sale of loans held for sale	(12,574		)	(59		)
Change in fair value of mortgage servicing rights	32,793			—
Net loss on sales of other real estate owned	888			122
Net loss on other real estate owned related to FDIC-assisted transactions	273			65
Increase in cash surrender value of life insurance	(839		)	(827		)
(Increase) decrease in other assets, net	(38,984		)	23,713
Decrease in other liabilities, net	(41,616		)	(36,590		)
Net cash provided by operating activities	56,981			32,529
Cash Flows From Investing Activities
Decrease in federal funds sold	—			35,450
Proceeds from sales of investment securities available for sale	28,067			11,375
Proceeds from maturities and calls of investment securities available for sale	51,922			61,989
Purchases of investment securities available for sale	(11,570		)	(37,670		)
Proceeds from maturities and calls of investment securities held to maturity	19,177			11,736
Purchases of investment securities held to maturity	(24,448		)	(12,836		)
Purchases of non-marketable securities - FHLB and FRB stock	(12,108		)	(15		)
Net decrease in loans	190,353			134,795
Purchases in mortgage servicing rights	(85		)	—
Purchases of premises and equipment and leased equipment	(11,557		)	(5,572		)
Proceeds from sales of premises and equipment and leased equipment	1,326			4,219
Proceeds from sale of other real estate owned	1,086			2,778
Proceeds from sale of other real estate owned related to FDIC-assisted transactions	2,087			631
Net proceeds from FDIC related covered assets	(3,773		)	3,032
Net cash provided by investing activities	230,477			209,912
Cash Flows From Financing Activities
Net increase in deposits	28,559			104,488
Net decrease in short-term borrowings	(316,184		)	(303,517		)
Proceeds from long-term borrowings	7,650			6,117
Principal paid on long-term borrowings	(5,089		)	(2,612		)
Treasury stock transactions, net	(985		)	(334		)
Stock options exercised	45			61
Excess tax expense from share-based payment arrangements	12			95
Dividends paid on preferred stock	(2,000		)	—
Dividends paid on common stock	(10,495		)	(6,576		)
Net cash used in financing activities	(298,487		)	(202,278		)
Net (decrease) increase in cash and cash equivalents	$	(11,029	)	$	40,163
Cash and cash equivalents:
Beginning of period	312,081			473,459
End of period	$	301,052		$	513,622

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MB FINANCIAL, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

(Amounts in Thousands) (Unaudited)

	Three Months Ended
	March 31,
	2015		2014
Supplemental Disclosures of Cash Flow Information:
Cash payments for:
Interest paid to depositors and other borrowed funds	$	7,438	$	5,275
Income tax payments, net	987		1,967
Supplemental Schedule of Noncash Investing Activities:
Investment securities held to maturity purchased not settled	$	6,416	$	9,941
Loans held for sale transferred to loans held for investment	20,829		—
Loans transferred to other real estate owned	4,615		539
Loans transferred to other real estate owned related to FDIC-assisted transactions	1,345		3,419
Loans transferred to repossessed vehicles	286		205
Operating leases rewritten as direct finance leases included as loans	5,590		316

See Accompanying Notes to Consolidated Financial Statements.

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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 position, results of operations and cash flows for the interim periods have been made. The results of operations for the three months endedMarch 31, 2015 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, 2014.

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 310 “Receivables.” New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical

possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosures. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to require an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have a material impact on the Company's statements of operations or financial condition.

ASC Topic 323 “Investments - Equity Method and Joint Ventures.” New authoritative accounting guidance under ASC Topic 323, “Investments - Equity Method and Joint Ventures” amended prior guidance to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operation as a component of income tax expense. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topics 205 “Presentation of Financial Statements” and 360 “Property, Plant, and Equipment.” New authoritative accounting guidance under ASC Topic 205, “Presentation of Financial Statements” and ASC Topic 360 “Property, Plant, and Equipment” amended prior guidance to change the requirements for reporting discontinued operations. The disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new authoritative guidance also

10

requires additional disclosures about discontinued operations. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topic 860 “Transfers and Servicing.” New authoritative accounting guidance under ASC Topic 860, “Transfers and Servicing” amended prior guidance to change the accounting for repurchase-to-maturity transactions to secured borrowing accounting and to require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The new authoritative guidance also requires disclosures for a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an 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” amended prior guidance to require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topic 225 “Income Statement - Extraordinary and Unusual Items.” New authoritative accounting guidance under ASC Topic 225, “Income Statement - Extraordinary and Unusual Items” amended prior guidance to eliminate the concept of extraordinary items. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 810 “Consolidation.” New authoritative accounting guidance under ASC Topic 810, “Consolidation” amended prior guidance over the consolidation of certain legal entities. The new authoritative guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with variable interest entities and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those for registered money market funds. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition.

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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
	March 31,
	2015		2014
Distributed earnings allocated to common stock	$	10,610	$	6,666
Undistributed earnings	23,501		13,303
Net income	34,111		19,969
Less: preferred stock dividends	2,000		—
Net income available to common stockholders	32,111		19,969
Less: earnings allocated to participating securities	1		—
Earnings allocated to common stockholders	$	32,110	$	19,969
Weighted average shares outstanding for basic earnings per common share	74,567,104		54,639,951
Dilutive effect of equity awards	597,612		625,237
Weighted average shares outstanding for diluted earnings per common share	75,164,716		55,265,188
Basic earnings per common share	$	0.43	$	0.37
Diluted earnings per common share	0.43		0.36

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Note 4.    Business Combination

On August 18, 2014, the Company acquired Taylor Capital Group, Inc. (“Taylor Capital”), a bank holding company and the parent company of Cole Taylor Bank, a commercial bank headquartered in Chicago, through the merger (the “Merger”) of Taylor Capital with and into the Company, followed immediately by the merger of Cole Taylor Bank with and into MB Financial Bank. This transaction solidifies the Company's market position in Chicago and diversifies its revenue streams. At the effective time of the Merger (the “Effective Time”), each share of the common stock of Taylor Capital and each share of nonvoting convertible preferred stock of Taylor Capital converted into the right to receive (1) 0.64318 of a share of the common stock of the Company, and (2) $4.08 in cash. All “in-the-money” Taylor Capital stock options and warrants outstanding immediately prior to the Effective Time were canceled in exchange for the right to receive a cash payment as provided in the merger agreement, as were the outstanding unvested restricted stock awards of Taylor Capital; however, the cash consideration payable for such restricted stock awards will remain subject to vesting or other lapse restrictions. Each share of Taylor Capital’s perpetual non-cumulative preferred stock, Series A, converted into the right to receive one share of the Company’s perpetual non-cumulative preferred stock, Series A.

The Company issued approximately 19.6 million shares of common stock and paid approximately $129.5 million in cash in the Merger. For the “in-the-money” Taylor Capital stock options and warrants, the Company paid in the aggregate approximately $4.4 million in cash. For the outstanding unvested Taylor Capital restricted stock awards, the Company will pay or has paid in the aggregate up to approximately $3.7 million in cash, as and to the extent such awards vest. The $129.5 million cash consideration includes payments for the Taylor Capital stock options, warrants and restricted stock awards.

This business combination was accounted for under the acquisition method of accounting.  Accordingly, the results of operations of the acquired company have been included in the Company’s results of operations since the date of acquisition.  Under this method of accounting, the assets acquired, liabilities assumed and consideration paid are recorded at their estimated fair values.  The excess cost over fair value of net assets acquired is recorded as goodwill.  As the consideration paid for Taylor Capital exceeded the net assets acquired, goodwill of $288.2 million was recorded on the acquisition and was allocated to the banking segment. Goodwill recorded in the transaction, which reflects the increased Chicago market share and related synergies expected from the combined operations, is not tax deductible. The amounts recognized for the business combination in the financial statements as of March 31, 2015 have been determined to be final.

13

Estimated fair values of the assets acquired and liabilities assumed in the Taylor Capital transaction, as of the closing date of the transaction were as follows (in thousands):

	August 18,
	2014
ASSETS
Cash and cash equivalents	$	154,684
Investment securities available for sale	826,691
Investment securities held to maturity	22,599
Non-marketable securities - FRB and FHLB Stock	50,620
Loans held for sale	670,671
Loans	3,532,211
Leases investments	11,885
Premises and equipment	19,701
Goodwill	288,152
Core deposit intangible	20,079
Mortgage servicing rights	224,453
Other real estate owned	4,720
Other assets	130,478
Total assets	$	5,956,944
LIABILITIES
Deposits	$	3,953,213
Short-term borrowings	1,035,800
Junior subordinated notes issued to capital trusts	80,843
Accrued expenses and other liabilities	123,028
Total liabilities	$	5,192,884
Series A preferred stock at $28.82 per share at August 15, 2014	$	115,280
Total identifiable net assets less Series A preferred stock	$	648,780
Consideration excluding Series A preferred stock:
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued)	$	519,270
Cash paid	129,510
Total fair value of consideration, excluding Series A preferred stock	$	648,780

The Company's Series A preferred stock was valued based upon the closing price of Taylor Capital's Series A preferred stock on August 15, 2014, the last trading day before the Merger date.

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 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 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 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 (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor Capital loans which will largely offset the accretion from the pass rated loans.

14

In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans ("PCI loans"), 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 when there is a reasonable expectation about the amount and timing of such cash flows.

The following table presents the acquired loans as of the acquisition date (in thousands):

	PCI Loans			Non-PCI Loans
Contractually required principal and interest payments	$	244,650		$	3,707,463
Contractually required interest payments not expected to be collected due to estimated prepayments	—			(302,329		)
Nonaccretable difference	(34,219		)	—
Cash flows expected to be collected	210,431			3,405,134
Accretable difference	(5,626		)	(77,728		)
Fair value of acquired loans	$	204,805		$	3,327,406

The Company recorded $8.1 million and $680 thousand in pre-tax merger related expenses for the three months ended March 31, 2015 and 2014, respectively. These merger related expenses primarily relate to retention and severance compensation costs, professional and legal fees and branch exit and facilities impairment charges. The data processing systems were converted in September 2014.

The following table provides the unaudited pro forma information for the results of operations for the three months ended March 31, 2014, as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of operations including the impact of certain purchase accounting adjustments including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. Net income in the table below includes merger related expenses.

	Pro Forma
	Three Months Ended
	March 31,
	2014
(in thousands)
Total revenues (net interest income plus non-interest income)	$	185,028
Net income	34,752

Revenues and earnings of the acquired company since the acquisition date have not been disclosed as it is not practicable as Taylor Capital was merged into the Company and separate financial information is not readily available.

15

Note 5. Investment Securities

Amortized cost and fair value of investment securities were as follows as of the dates indicated (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015
Available for Sale
U.S. Government sponsored agencies and enterprises	$	64,411	$	1,659	$	—		$	66,070
States and political subdivisions	381,704		21,953		(29		)	403,628
Residential mortgage-backed securities	666,904		12,383		(812		)	678,475
Commercial mortgage-backed securities	174,823		3,816		(181		)	178,458
Corporate bonds	250,543		3,462		(1,963		)	252,042
Equity securities	10,587		164		—			10,751
Total Available for Sale	1,548,972		43,437		(2,985		)	1,589,424
Held to Maturity
States and political subdivisions	764,931		32,136		(284		)	796,783
Residential mortgage-backed securities	235,928		12,494		—			248,422
Total Held to Maturity	1,000,859		44,630		(284		)	1,045,205
Total	$	2,549,831	$	88,067	$	(3,269	)	$	2,634,629
December 31, 2014
Available for Sale
U.S. Government sponsored agencies and enterprises	$	64,612	$	1,281	$	(20	)	$	65,873
States and political subdivisions	390,076		20,846		(68		)	410,854
Residential mortgage-backed securities	713,413		8,977		(1,827		)	720,563
Commercial mortgage-backed securities	186,110		1,772		(220		)	187,662
Corporate bonds	259,526		2,428		(2,751		)	259,203
Equity securities	10,531		66		—			10,597
Total Available for Sale	1,624,268		35,370		(4,886		)	1,654,752
Held to Maturity
States and political subdivisions	752,558		30,089		(382		)	782,265
Residential mortgage-backed securities	240,822		11,974		—			252,796
Total Held to Maturity	993,380		42,063		(382		)	1,035,061
Total	$	2,617,648	$	77,433	$	(5,268	)	$	2,689,813

The Company has no direct exposure to the State of Illinois, but approximately 25% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of March 31, 2015. Approximately 93% of such securities were general obligation issues as of March 31, 2015.

16

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at March 31, 2015 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
States and political subdivisions	$	4,761	$	(10	)	$	2,253	$	(19	)	$	7,014	$	(29	)
Residential mortgage-backed securities	62,437		(278		)	43,263		(534		)	105,700		(812		)
Commercial mortgage-backed securities	16,752		(181		)	—		—			16,752		(181		)
Corporate bonds	26,242		(459		)	9,675		(1,504		)	35,917		(1,963		)
Total Available for Sale	110,192		(928		)	55,191		(2,057		)	165,383		(2,985		)
Held to Maturity
States and political subdivisions	36,619		(137		)	6,240		(147		)	42,859		(284		)
Total	$	146,811	$	(1,065	)	$	61,431	$	(2,204	)	$	208,242	$	(3,269	)

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, 2014 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	$	9,644	$	(20	)	$	—	$	—		$	9,644	$	(20	)
States and political subdivisions	7,784		(21		)	3,558		(47		)	11,342		(68		)
Residential mortgage-backed securities	235,818		(1,336		)	29,373		(491		)	265,191		(1,827		)
Commercial mortgage-backed securities	89,509		(220		)	—		—			89,509		(220		)
Corporate bonds	62,693		(1,159		)	9,675		(1,592		)	72,368		(2,751		)
Total Available for Sale	405,448		(2,756		)	42,606		(2,130		)	448,054		(4,886		)
Held to Maturity
States and political subdivisions	28,786		(130		)	14,238		(252		)	43,024		(382		)
Total	$	434,234	$	(2,886	)	$	56,844	$	(2,382	)	$	491,078	$	(5,268	)

The total number of security positions in the investment portfolio in an unrealized loss position at March 31, 2015 was 97 compared to 168 at December 31, 2014. 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 March 31, 2015, 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 March 31, 2015, 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.

17

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

	Three Months Ended
	March 31,
	2015			2014
Realized gains	$	759		$	318
Realized losses	(1,219		)	(1		)
Net (losses) gains	$	(460	)	$	317

The amortized cost and fair value of investment securities as of March 31, 2015 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	$	17,722	$	17,770
Due after one year through five years	291,975		294,881
Due after five years through ten years	42,645		44,133
Due after ten years	344,316		364,956
Equity securities	10,587		10,751
Residential and commercial mortgage-backed securities	841,727		856,933
	1,548,972		1,589,424
Held to maturity:
Due in one year or less	52,102		52,249
Due after one year through five years	222,670		224,797
Due after five years through ten years	99,975		104,546
Due after ten years	390,184		415,191
Residential mortgage-backed securities	235,928		248,422
	1,000,859		1,045,205
Total	$	2,549,831	$	2,634,629

Investment securities with a carrying amount of $1.5 billion at March 31, 2015 and December 31, 2014, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $908.6 million and $980.4 million were required to be pledged at March 31, 2015 and December 31, 2014, respectively. Of those pledged, the Company had investment securities pledged as collateral for advances from the Federal Home Loan Bank of $200.9 million and $226.9 million at March 31, 2015 and December 31, 2014, respectively.

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Note 6. Loans

Loans consist of the following at (in thousands):

	March 31, 2015		December 31, 2014
Commercial loans	$	3,258,652	$	3,245,206
Commercial loans collateralized by assignment of lease payments	1,628,031		1,692,258
Commercial real estate	2,525,640		2,544,867
Residential real estate	505,558		503,287
Construction real estate	184,105		247,068
Indirect vehicle	273,105		268,840
Home equity	241,078		251,909
Other consumer loans	77,645		78,137
Total loans, excluding purchased credit-impaired and covered loans	8,693,814		8,831,572
Purchased credit-impaired and covered loans	227,514		251,645
Total loans	$	8,921,328	$	9,083,217

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 and asset-based loans, credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by MB Financial Bank.

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 Company's Board of Directors on a regular basis.

Commercial Loans. Commercial credit is extended primarily 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 and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave 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 or Standard & Poor's Rating Services or, in the event the related lessee has not received any such rating, where the related lessee would be viewed under the underwriting policies of the Company as an investment grade company. 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.

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 cash flow loans and the repayment of these loans is largely dependent on the successful operation 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 controlled 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, they are subject to other industry specific policy guidelines outlined in the Company's Credit Risk Policy.

19

Consumer Related Loans. The Company originates direct and indirect consumer loans, including primarily residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans (motorcycle, powersports, recreational and marine 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 Company relationship with the borrower. Indirect loan and credit card underwriting involves the use of risk-based pricing in the underwriting process.

A collateral pledge agreement exists whereby at all times, the Company must keep on hand, free of all other pledges, liens, and encumbrances, first mortgage loans and home equity loans with unpaid principal balances aggregating no less than 133% for first mortgage loans and 250% for home equity loans of the outstanding advances from the Federal Home Loan Bank.  As of March 31, 2015 and December 31, 2014, the Company had $3.5 billion and $2.0 billion, respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $1.3 billion were required to be pledged at March 31, 2015 and December 31, 2014, respectively.

The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2015 and December 31, 2014 (in thousands):

	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total Past Due		Total
March 31, 2015
Commercial	$	3,220,398	$	27,393	$	1,899	$	8,962	$	38,254	$	3,258,652
Commercial collateralized by assignment of lease payments	1,611,508		12,350		2,062		2,111		16,523		1,628,031
Commercial real estate
Healthcare	344,393		—		—		—		—		344,393
Industrial	334,667		—		—		2,309		2,309		336,976
Multifamily	372,358		2,823		—		1,336		4,159		376,517
Retail	436,710		240		1,817		2,054		4,111		440,821
Office	243,266		1,235		23		2,048		3,306		246,572
Other	776,851		1,156		281		2,073		3,510		780,361
Residential real estate	492,557		5,060		951		6,990		13,001		505,558
Construction real estate	183,768		—		—		337		337		184,105
Indirect vehicle	270,474		1,933		473		225		2,631		273,105
Home equity	232,851		2,551		268		5,408		8,227		241,078
Other consumer	77,546		76		23		—		99		77,645
Total loans, excluding purchased credit-impaired and covered loans	8,597,347		54,817		7,797		33,853		96,467		8,693,814
Purchased credit-impaired and covered loans	134,140		8,291		1,685		83,398		93,374		227,514
Total loans	$	8,731,487	$	63,108	$	9,482	$	117,251	$	189,841	$	8,921,328
Non-performing loan aging	$	45,674	$	3,018	$	911	$	33,675	$	37,604	$	83,278
December 31, 2014
Commercial	$	3,231,571	$	8,222	$	—	$	5,413	$	13,635	$	3,245,206
Commercial collateralized by assignment of lease payments	1,679,991		2,025		6,095		4,147		12,267		1,692,258
Commercial real estate
Healthcare	342,984		—		—		—		—		342,984
Industrial	333,907		944		—		3,182		4,126		338,033
Multifamily	417,504		1,377		—		1,517		2,894		420,398
Retail	432,718		2,481		652		2,325		5,458		438,176
Office	244,166		—		—		2,127		2,127		246,293
Other	754,031		307		2,421		2,224		4,952		758,983
Residential real estate	485,492		8,038		2,319		7,438		17,795		503,287
Construction real estate	246,731		—		—		337		337		247,068
Indirect vehicle	265,296		2,516		702		326		3,544		268,840
Home equity	242,756		2,717		1,039		5,397		9,153		251,909
Other consumer	78,106		16		12		3		31		78,137
Total loans, excluding purchased credit-impaired and covered loans	8,755,253		28,643		13,240		34,436		76,319		8,831,572
Purchased credit-impaired and covered loans	158,215		4,432		585		88,413		93,430		251,645
Total loans	$	8,913,468	$	33,075	$	13,825	$	122,849	$	169,749	$	9,083,217
Non-performing loan aging	$	46,149	$	5,764	$	1,099	$	34,075	$	40,938	$	87,087

20

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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
			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	$	13,897	$	75	$	14,088	$	—
Commercial collateralized by assignment of lease payments	3,602		741		2,404		3,566
Commercial real estate:
Healthcare	—		—		—		—
Industrial	4,816		—		6,371		—
Multifamily	5,008		—		5,333		—
Office	3,268		—		3,644		464
Retail	2,898		—		2,986		—
Other	13,655		—		13,541		324
Residential real estate	16,925		891		17,311		—
Construction real estate	337		—		337		—
Indirect vehicle	1,473		—		1,542		—
Home equity	15,672		—		15,171		—
Other consumer	20		—		5		—
Total	$	81,571	$	1,707	$	82,733	$	4,354

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. Risk ratings are updated any time the situation warrants and at least annually. Loans listed as not rated are included in groups of homogeneous loans with similar risk and loss characteristics.

21

The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015
Commercial	$	3,029,893	$	155,032	$	73,727	$	—	$	3,258,652
Commercial collateralized by assignment of lease payments	1,614,968		935		12,128		—		1,628,031
Commercial real estate
Healthcare	340,036		4,357		—		—		344,393
Industrial	314,666		13,200		9,110		—		336,976
Multifamily	368,675		1,287		6,555		—		376,517
Retail	426,760		4,165		9,896		—		440,821
Office	225,451		13,544		7,577		—		246,572
Other	727,643		17,426		35,292		—		780,361
Construction real estate	183,244		524		337		—		184,105
Total	$	7,231,336	$	210,470	$	154,622	$	—	$	7,596,428
December 31, 2014
Commercial	$	3,036,069	$	178,984	$	30,153	$	—	$	3,245,206
Commercial collateralized by assignment of lease payments	1,680,736		6,853		4,669		—		1,692,258
Commercial real estate
Healthcare	338,622		4,362		—		—		342,984
Industrial	314,225		8,817		14,991		—		338,033
Multifamily	412,824		920		6,654		—		420,398
Retail	423,842		2,740		11,594		—		438,176
Office	229,947		8,524		7,822		—		246,293
Other	708,447		22,013		28,523		—		758,983
Construction real estate	246,204		527		337		—		247,068
Total	$	7,390,916	$	233,740	$	104,743	$	—	$	7,729,399

Approximately $46.9 million and $49.1 million of the substandard and doubtful loans were non-performing as of March 31, 2015 and December 31, 2014, respectively.

For residential real estate, home equity, indirect vehicle and other consumer loan classes, which are not rated, the Company 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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	Performing		Non-performing		Total
March 31, 2015
Residential real estate	$	487,742	$	17,816	$	505,558
Indirect vehicle	271,631		1,474		273,105
Home equity	225,407		15,671		241,078
Other consumer	77,625		20		77,645
Total	$	1,062,405	$	34,981	$	1,097,386
December 31, 2014
Residential real estate	$	485,976	$	17,311	$	503,287
Indirect vehicle	267,297		1,543		268,840
Home equity	236,739		15,170		251,909
Other consumer	78,132		5		78,137
Total	$	1,068,144	$	34,029	$	1,102,173

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The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015
									Three Months 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	$	9,686	$	8,925	$	761	$	—	$	10,640	$	—
Commercial collateralized by assignment of lease payments	1,508		1,508		—		—		1,626		29
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	5,846		4,670		1,176		—		4,962		—
Multifamily	1,698		1,698		—		—		1,792		7
Retail	2,019		807		1,212		—		825		—
Office	1,608		1,031		577		—		1,609		—
Other	1,490		1,465		25		—		1,527		—
Residential real estate	970		970		—		—		—		—
Construction real estate	—		—		—		—		—		—
Indirect vehicle	—		—		—		—
Home equity	1,025		1,025		—		—		—		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	6,464		6,464		—		2,051		6,760		—
Commercial collateralized by assignment of lease payments	2,145		2,145		—		1,534		1,331		14
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	146		146		—		37		49		—
Multifamily	5,723		4,749		974		664		5,926		8
Retail	8,889		7,493		1,396		626		7,710		—
Office	2,369		1,866		503		484		2,274		—
Other	12,247		12,227		20		100		13,207		—
Residential real estate	14,153		14,153		—		3,045		14,407		—
Construction real estate	2,708		337		2,371		162		431		—
Indirect vehicle	164		164		—		14		372		—
Home equity	26,954		26,954		—		2,348		27,213		—
Other consumer	—		—		—		—		—		—
Total	$	107,812	$	98,797	$	9,015	$	11,065	$	102,661	$	58

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	December 31, 2014
	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	$	9,752	$	8,992	$	760	$	—	$	10,324	$	—
Commercial collateralized by assignment of lease payments	2,316		2,316		—		—		2,569		121
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	9,115		5,858		3,257		—		7,870		—
Multifamily	1,733		1,733		—		—		1,928		52
Retail	2,025		813		1,212		—		3,465		—
Office	—		—		—		—		1,127		—
Other	1,479		1,465		14		—		5,249		—
Residential real estate	1,941		1,941		—		—		2,740		—
Construction real estate	—		—		—		—		34		—
Indirect vehicle	—		—		—		—		—		—
Home equity	577		577		—		—		762		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	7,987		7,987		—		2,395		14,227		—
Commercial collateralized by assignment of lease payments	715		715		—		105		1,515		91
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	517		513		4		130		4,982		—
Multifamily	5,680		4,709		971		996		6,354		131
Retail	9,264		7,897		1,367		720		8,547		—
Office	4,528		2,986		1,542		545		2,833		—
Other	12,612		12,527		85		136		11,022		12
Residential real estate	14,234		14,234		—		3,126		14,632		—
Construction real estate	2,707		337		2,370		162		455		—
Indirect vehicle	227		227		—		14		358		—
Home equity	25,927		25,705		222		2,153		25,672		—
Other consumer	—		—		—		—		—		—
Total	$	113,336	$	101,532	$	11,804	$	10,482	$	126,665	$	407

Impaired loans included accruing restructured loans of $16.9 million and $15.6 million that have been modified and are performing in accordance with those modified terms as of March 31, 2015 and December 31, 2014, respectively.  In addition, impaired loans included $25.5 million and $25.8 million of non-performing, restructured loans as of March 31, 2015 and December 31, 2014, 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. Programs that we offer to residential real estate borrowers include the Home Affordable Refinance Program (“HARP”), a restructuring program similar to the Home Affordable Modification Program (“HAMP”) for first mortgage borrowers, the Second Lien Modification Program (“2MP”) and similar programs for home equity borrowers in keeping with the restructuring techniques discussed above.

Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of

24

repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. As of March 31, 2015 and December 31, 2014, there was one A/B structure with a recorded investment of $1.0 million, which is included above as an accruing restructured loan. 

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 loss 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 March 31, 2015 (dollars in thousands):

	March 31, 2015
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Home equity	6	$	2,346	$	2,346	$	—
Total	6	$	2,346	$	2,346	$	—
Non-Performing:
Indirect vehicle	3	$	9	$	9	$	—
Home equity	5	798		798		122
Total	8	$	807	$	807	$	122

The following table presents loans that were restructured during the three months ended March 31, 2014 (dollars in thousands):

	March 31, 2014
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Indirect vehicle	1	$	5	$	5	$	—
Home equity	3	1,039		1,039		—
Total	4	$	1,044	$	1,044	$	—
Non-Performing:
Residential real estate	4	$	1,439	$	1,439	$	—
Indirect vehicle	18	108		108		—
Home equity	4	532		532		—
Total	26	$	2,079	$	2,079	$	—

Of the troubled debt restructurings entered into during the past twelve months, $224 thousand subsequently defaulted during the three months endedMarch 31, 2015.  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.

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The following table presents the troubled debt restructurings activity during the three months endedMarch 31, 2015 (in thousands):

	Performing			Non-performing
Beginning balance	$	15,603		$	25,771
Additions	2,346			807
Charge-offs	—			(203		)
Principal payments, net	(111		)	(619		)
Removals	(1,185		)	(22		)
Transfer from/to performing	221			—
Transfer from/to non-performing	—			(221		)
Ending balance	$	16,874		$	25,513

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 three months endedMarch 31, 2015 (in thousands):

	March 31, 2015
	Extended
	Maturity,		Delay in
	Amortization		Payments or
	and Reduction		Reduction of
	of Interest Rate		Interest Rate		Total
Indirect vehicle	$	—	$	9	$	9
Home equity	791		2,353		3,144
Total	$	791	$	2,362	$	3,153

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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 March 31, 2015 and 2014 (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
March 31, 2015
Allowance for credit losses:
Three Months Ended
Beginning balance	$	29,571		$	9,962		$	41,826	$	6,646		$	8,918		$	1,687	$	9,456		$	1,960	$	4,031		$	114,057
Charge-offs	569			—			2,034		579			3			874		444			424		—			4,927
Recoveries	242			749			1,375		72			2			475		101			69		—			3,085
Provision	3,583			(886		)	791		621			556			427		(333		)	469		(254		)	4,974
Ending balance	$	32,827		$	9,825		$	41,958	$	6,760		$	9,473		$	1,715	$	8,780		$	2,074	$	3,777		$	117,189
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,051		$	1,534		$	1,911	$	3,045		$	162		$	14	$	2,348		$	—	$	1,333		$	12,398
Collectively evaluated for impairment	30,320			8,291			39,435		3,715			9,305			1,701		6,432			2,074		2,444			103,717
Acquired and accounted for under ASC 310-30 (1)	456			—			612		—			6			—		—			—		—			1,074
Total ending allowance balance	$	32,827		$	9,825		$	41,958	$	6,760		$	9,473		$	1,715	$	8,780		$	2,074	$	3,777		$	117,189
Loans:
Individually evaluated for impairment	$	15,389		$	3,653		$	36,152	$	15,123		$	337		$	164	$	27,979		$	—	$	—		$	98,797
Collectively evaluated for impairment	3,243,263			1,624,378			2,489,488		490,435			183,768			272,941		213,099			77,645		—			8,595,017
Acquired and accounted for under ASC 310-30 (1)	84,564			—			75,008		19,265			28,801			—		75			19,801		—			227,514
Total ending loans balance	$	3,343,216		$	1,628,031		$	2,600,648	$	524,823		$	212,906		$	273,105	$	241,153		$	97,446	$	—		$	8,921,328
March 31, 2014
Allowance for credit losses:
Three Months Ended
Beginning balance	$	23,461		$	9,159		$	51,628	$	8,872		$	6,856		$	1,662	$	8,478		$	1,630	$	1,716		$	113,462
Charge-offs	90			—			7,156		265			56			920		619			495		—			9,601
Recoveries	1,628			—			485		519			99			442		133			78		—			3,384
Provision	(1,061		)	(101		)	2,583		(1,039		)	(415		)	500		405			351		(73		)	1,150
Ending balance	$	23,938		$	9,058		$	47,540	$	8,087		$	6,484		$	1,684	$	8,397		$	1,564	$	1,643		$	108,395
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,160		$	174		$	4,151	$	3,076		$	195		$	25	$	1,395		$	—	$	665		$	15,841
Collectively evaluated for impairment	17,312			8,884			41,707		5,011			6,229			1,659		7,002			1,564		978			90,346
Acquired and accounted for under ASC 310-30 (1)	466			—			1,682		—			60			—		—			—		—			2,208
Total ending allowance balance	$	23,938		$	9,058		$	47,540	$	8,087		$	6,484		$	1,684	$	8,397		$	1,564	$	1,643		$	108,395
Loans:
Individually evaluated for impairment	$	41,191		$	4,235		$	57,960	$	18,151		$	782		$	183	$	24,810		$	—	$	—		$	147,312
Collectively evaluated for impairment	1,208,639			1,468,386			1,565,549		287,790			132,215			265,861		233,310			64,812		—			5,226,562
Acquired and accounted for under ASC 310-30 (1)	30,976			—			95,506		5,121			36,752			—		110			25,976		—			194,441
Total ending loans balance	$	1,280,806		$	1,472,621		$	1,719,015	$	311,062		$	169,749		$	266,044	$	258,230		$	90,788	$	—		$	5,568,315

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

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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 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 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 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 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 (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor loans which will largely offset the accretion from the pass rated loans.

In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans, 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 when there is a reasonable expectation about the amount and timing of such cash flows.

Substantially all of the loans acquired in transactions with the FDIC 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 three months endedMarch 31, 2015, there was a negative provision for credit losses of $429 thousand and net recoveries of $220 thousand, in relation to 16 pools of purchased loans with a total carrying amount of $71.7 million as of March 31, 2015. There was $1.1 million and $1.3 million in allowance for loan losses related to these purchased loans at March 31, 2015 and December 31, 2014, 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 months endedMarch 31, 2015 and 2014 (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Balance at beginning of period	$	7,434		$	2,337
Accretion	(1,930		)	(550		)
Other	863			574
Balance at end of period	$	6,367		$	2,361

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.

When cash flow estimates are adjusted downward for a particular loan pool, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows.

When cash flow estimates are adjusted upward for a particular loan pool, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan pool.

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When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows.

When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed.

In both scenarios, the clawback liability (the amount the FDIC requires the Company to pay back if certain thresholds are met) will increase or decrease accordingly.

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 type are as follows (in thousands):

March 31, 2015	Purchased Credit-Impaired Loans		Purchased Non-Credit-Impaired Loans		Total
Covered loans:
Commercial related (1)	$	139	$	4	$	143
Commercial	837		273		1,110
Commercial real estate	19,570		13,669		33,239
Construction real estate	—		1,269		1,269
Other	1,134		19,794		20,928
Total covered loans	$	21,680	$	35,009	$	56,689
Estimated (payable) receivable amount from the FDIC under the loss-share agreement (2)	$	482	$	4,125	$	4,607
Non-covered loans:
Commercial related (1)	$	7,033	$	11,495	$	18,528
Commercial loans	76,279		1,285,210		1,361,489
Commercial loans collateralized by assignment of lease payments	—		114,829		114,829
Commercial real estate	41,769		840,863		882,632
Construction real estate	27,532		89,200		116,732
Other	18,212		198,740		216,952
Total non-covered loans	$	170,825	$	2,540,337	$	2,711,162

⁽¹⁾  Commercial related loans include commercial, commercial real estate and construction real estate for the InBank, Heritage and Benchmark FDIC-assisted transactions.

⁽²⁾  Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $1.3 million in amounts due to the FDIC related to covered other real estate owned.

Outstanding balances on purchased loans from the FDIC were $86.5 million and $95.1 million as of March 31, 2015 and December 31, 2014, respectively.  The related carrying amount on loans purchased from the FDIC was $81.6 million and $91.4 million as of March 31, 2015 and December 31, 2014, respectively.

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Effective April 1, 2014, the losses on commercial related loans (commercial, commercial real estate and construction real estate) acquired in connection with the Heritage FDIC-assisted transaction ceased being covered under the loss-share agreement for that transaction. The carrying amount of those loans was $3.0 million as of March 31, 2015. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to April 1, 2014 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreement) through March 31, 2017. The losses on consumer related loans acquired in connection with the Heritage FDIC-assisted transaction will continue to be covered under the loss-share agreement through March 31, 2019.

The losses on commercial related loans acquired in connection with the Benchmark FDIC-assisted transaction ceased to be covered under the loss-share agreement for that transaction effective January 1, 2015. The carrying amount of those loans was $2.8 million as of March 31, 2015. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to January 1, 2015 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreements) through December 31, 2017. The losses on consumer related loans acquired in connection with the Benchmark FDIC-assisted transaction will continue to be covered under the loss-share agreements through December 31, 2019.

Effective July 1, 2015, the losses on commercial related loans acquired in connection with Broadway and New Century FDIC-assisted transactions will cease to be covered under the loss-share agreements for those transactions. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to July 1, 2015 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreements) through June 30, 2018. The losses on consumer related loans acquired in connection with the Broadway and New Century FDIC-assisted transactions will continue to be covered under the loss-share agreements through June 30, 2020.

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Note 7.   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. No impairment losses were recognized during the three months endedMarch 31, 2015 or 2014.   The carrying amount of goodwill was $711.5 million at March 31, 2015 and December 31, 2014.

The Company has other intangible assets consisting of core deposit and client relationship intangibles that had a remaining weighted average amortization period of approximately five years as of March 31, 2015.

The following table presents the changes in the carrying amount of core deposit and client relationship intangibles, gross carrying amount, accumulated amortization, and net book value as of March 31, 2015 (in thousands):

	Three Months Ended
	March 31, 2015
Balance at beginning of period	$	38,006
Amortization expense	(1,518		)
Balance at end of period	$	36,488
Gross carrying amount	$	80,371
Accumulated amortization	(43,883		)
Net book value	$	36,488

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

Year ending December 31,	Amount
2015	$	4,445
2016	5,157
2017	4,637
2018	4,221
2019	2,743
Thereafter	15,285
	$	36,488

Note 8. Deposits

The composition of deposits was as follows (in thousands):

	March 31,		December 31,
	2015		2014
Demand deposit accounts, noninterest bearing	$	4,290,499	$	4,118,256
NOW and money market accounts	4,002,818		3,913,765
Savings accounts	969,560		940,345
Certificates of deposit, $250,000 or more	716,701		838,928
Other certificates of deposit	1,039,923		1,179,648
Total	$	11,019,501	$	10,990,942

Certificates of deposit of $250,000 or more included $395.3 million and $485.3 million of brokered deposits at March 31, 2015 and December 31, 2014, respectively.  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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Note 9. Short-Term Borrowings

Short-term borrowings were as follows as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31, 2015				December 31, 2014
	Weighted Average Cost		Amount		Weighted Average Cost		Amount
Customer repurchase agreements	0.16	%	$	240,478	0.21	%	$	219,824
Federal Home Loan Bank advances	0.11		300,000		0.13		700,000
Federal funds purchased	0.33		74,753		0.14		11,591
	0.16	%	$	615,231	0.15	%	$	931,415

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 had Federal Home Loan Bank fixed rate advances with a maturity date less than one year of $300.0 million and $700.0 million at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015, the interest rate on the advance outstanding on that date had a rate of 0.11% with a maturity of December 11, 2015. The Company has investment securities available for sale and loans pledged as collateral on this FHLB advance. See Note 5. Investment Securities and Note 6. Loans of the notes to the consolidated financial statements.

On March 9, 2012, the Company entered into a $35.0 million unsecured line of credit with a correspondent bank. Interest is payable at a rate of one month LIBOR + 1.85%. As of March 31, 2015, no amount was outstanding and the line of credit is scheduled to mature on September 7, 2015.

Note 10. Long-term Borrowings

The Company had Federal Home Loan Bank advances with remaining contractual maturities greater than one year of $4.1 million at March 31, 2015 and $4.2 million at December 31, 2014. As of March 31, 2015, the advances had fixed terms with effective interest rates, net of discounts, ranging from 3.23% to 5.87% and maturities ranging from April 2021 to April 2035. The Company has investment securities available for sale and loans pledged as collateral on these FHLB advances. See Note 5. Investment Securities and Note 6. Loans of the notes to the consolidated financial statements.

The Company had notes payable to banks totaling $41.2 million and $38.5 million at March 31, 2015 and December 31, 2014, respectively, which as of March 31, 2015, were accruing interest at rates ranging from 2.25% to 12.00%.  Lease investments includes equipment with an amortized cost of $50.8 million and $48.8 million at March 31, 2015 and December 31, 2014, respectively, that is pledged as collateral on these notes.

The Company had a $40.0 million10-year structured repurchase agreement as of March 31, 2015 and December 31, 2014, which bears interest at a fixed rate borrowing of 4.75% and expires in 2016.

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Note 11. 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 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 March 31, 2015 (in thousands):

	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

(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 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 discount of $7.4 million.

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.

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Note 12. 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 March 31, 2015 and December 31, 2014, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands):

	Contractual Amount
	March 31, 2015		December 31, 2014
Commitments to extend credit:
Home equity lines	$	209,466	$	221,102
Other commitments	2,651,028		2,643,220
Letters of credit:
Standby	132,056		131,810
Commercial	5,992		2,401

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 March 31, 2015, the maximum remaining term for any standby letters of credit was September 30, 2030.  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 March 31, 2015, 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 $3.8 million to $138.0 million from $134.2 million at December 31, 2014.  Of the $138.0 million in commitments outstanding at March 31, 2015, approximately $32.2 million of the letters of credit have been issued or renewed since December 31, 2014.

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 March 31, 2015, the Company had approximately $2.6 million in capital expenditure commitments outstanding which relate to various projects to renovate existing branches.

Concentrations of credit risk:  The majority of the loans, commitments to extend credit and standby letters of credit have been granted to customers in the Company’s market area.  As of March 31, 2015, approximately 25% 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 March 31, 2015. The distribution of commitments to extend credit approximates the distribution of loans outstanding.  Standby letters of credit are granted primarily to commercial borrowers. Our asset-based loans are made to borrowers located

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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.

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.

Note 13. 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 a 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.

Loans Held for Sale. Residential real estate 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.

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.

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 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.

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.

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. We also obtain dealer quotations for these derivatives for comparative purposes to assess the reasonableness of the model valuations. In addition, we use 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. We also offer 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 which 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.

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The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, 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)
March 31, 2015
Financial assets
Securities available for sale:
U.S Government sponsored agencies and enterprises	$	66,070	$	—	$	66,070	$	—
States and political subdivisions	403,628		—		403,165		463
Residential mortgage-backed securities	678,475		—		678,003		472
Commercial mortgage-backed securities	178,458		—		178,458		—
Corporate bonds	252,042		—		252,042		—
Equity securities	10,751		10,751		—		—
Loans held for sale	686,838		—		686,838		—
Loans	20,829		—		20,829		—
Mortgage servicing rights	219,254		—		—		219,254
Assets held in trust for deferred compensation	18,087		18,087		—		—
Derivative financial instruments	68,283		6,427		50,642		11,214
Financial liabilities
Other liabilities (1)	17,633		17,633		—		—
Derivative financial instruments	47,162		8,235		38,927		—
December 31, 2014
Financial assets
Securities available for sale:
U.S. Government sponsored agencies and enterprises	$	65,873	$	—	$	65,873	$	—
States and political subdivisions	410,854		—		410,391		463
Residential mortgage-backed securities	720,563		—		720,053		510
Commercial mortgage-backed securities	187,662		—		187,662		—
Corporate bonds	259,203		—		259,203		—
Equity securities	10,597		10,597		—		—
Loans held for sale	737,209		—		737,209		—
Mortgage servicing rights	235,402		—		—		235,402
Assets held in trust for deferred compensation	16,829		16,829		—		—
Derivative financial instruments	46,388		1,607		39,707		5,074
Financial liabilities
Other liabilities (1)	16,483		16,483		—		—
Derivative financial instruments	40,499		7,209		33,290		—

⁽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 at
	March 31, 2015		Valuation Technique	Unobservable Input	Range
	(in thousands)
States and political subdivisions	$	463	Discounted cash flows	Credit assumption	45% Loss
Residential mortgage-backed securities	472		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	219,254		Discounted cash flows	CPR	10.4% - 14.2%
				Discount rate	9.25 - 12.00
				Maturity (months)	299 - 356
				Delinquencies	0.25 - 5.00
				Costs to service	$ 60 - $ 160
				Costs to service - delinquent	$ 100 - $ 1,000
Derivative financial instruments (mortgage	11,214		Sales cash flows	Expected closing ratio	65% - 95%
interest rate lock commitments)				Expected delivery price	98.86 bps - 108.93 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 March 31, 2015 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)	March 31, 2015
Weighted average CPR	13.60		%
Impact on fair value of 10% adverse change	$	(9,979	)
Impact on fair value of 20% adverse change	(19,144		)
Weighted average discount rate	9.42		%
Impact on fair value of 10% adverse change	$	(7,330	)
Impact on fair value of 20% adverse change	(14,193		)
Weighted average delinquency rate	0.98		%
Impact on fair value of 10% adverse change	$	(1,310	)
Impact on fair value of 20% adverse change	(1,977		)
Weighted average costs to service	$	70
Impact on fair value of 10% adverse change	(3,142		)
Impact on fair value of 20% adverse change	(6,284		)

The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months endedMarch 31, 2015. 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.

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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):

	Three Months Ended
	March 31,
	2015			2014			2015			2014		2015		2014
(in thousands)	Investment Securities						Mortgage Servicing Rights					Derivatives
Balance, beginning of period	$	973		$	5,856		$	235,402		$	—	$	5,074	$	—
Purchases	—			—			85			—		—		—
Originations	—			—			16,560			—		—		—
Other comprehensive income	—			(179		)	—			—		—		—
Included in earnings	—			—			(32,793		)	—		6,140		—
Principal payments	(38		)	(178		)	—			—		—		—
Balance, ending of period	$	935		$	5,499		$	219,254		$	—	$	11,214	$	—

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 (90% at March 31, 2015), 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 March 31, 2015 and December 31, 2014 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)
March 31, 2015
Financial assets:
Impaired loans	$	61,757	$	—	$	—	$	61,757
Non-financial assets:
Foreclosed assets	39,889		—		—		39,889
December 31, 2014
Financial assets:
Impaired loans	$	61,717	$	—	$	—	$	61,717
Non-financial assets:
Foreclosed assets	38,619		—		—		38,619

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 at		Valuation	Unobservable
	March 31, 2015		Technique	Input	Range
	(in thousands)
Impaired loans	$	61,757	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	39,889		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 following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments:

Cash and due from banks, interest earning deposits with banks and federal funds sold: 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 a 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. 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.

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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):

	March 31, 2015
	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	$	248,840	$	248,840	$	248,840	$	—	$	—
Interest earning deposits with banks	52,212		52,212		52,212		—		—
Investment securities available for sale	1,589,424		1,589,424		10,751		1,577,738		935
Investment securities held to maturity	1,000,859		1,045,205		—		1,045,205		—
Non-marketable securities - FHLB and FRB stock	87,677		87,677		—		—		87,677
Loans held for sale	686,838		686,838		—		686,838		—
Loans, net	8,807,916		8,870,489		—		20,829		8,849,660
Accrued interest receivable	46,532		46,532		46,532		—		—
Derivative financial instruments	68,283		68,283		6,427		50,642		11,214
Financial Liabilities:
Noninterest bearing deposits	$	4,290,499	$	4,290,499	$	4,290,499	$	—	$	—
Interest bearing deposits	6,729,002		6,734,854		—		—		6,734,854
Short-term borrowings	615,231		615,216		—		—		615,216
Long-term borrowings	85,477		88,299		—		—		88,299
Junior subordinated notes issued to capital trusts	185,874		123,059		—		—		123,059
Accrued interest payable	3,005		3,005		3,005		—		—
Derivative financial instruments	47,162		47,162		8,235		38,927		—

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	December 31, 2014
	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	$	256,804	$	256,804	$	256,804	$	—	$	—
Interest earning deposits with banks	55,277		55,277		55,277		—		—
Investment securities available for sale	1,654,752		1,654,752		10,597		1,643,182		973
Investment securities held to maturity	993,380		1,035,061		—		1,035,061		—
Non-marketable securities - FHLB and FRB stock	75,569		75,569		—		—		75,569
Loans held for sale	737,209		737,209		—		737,209		—
Loans, net	8,973,191		8,956,494		—		—		8,956,494
Accrued interest receivable	49,065		49,065		49,065		—		—
Derivative financial instruments	46,388		46,388		1,607		39,707		5,074
Financial Liabilities:
Non-interest bearing deposits	$	4,118,256	$	4,118,256	$	4,118,256	$	—	$	—
Interest bearing deposits	6,872,686		6,877,349		—		—		6,877,349
Short-term borrowings	931,415		931,415		—		—		931,415
Long-term borrowings	82,916		86,025		—		—		86,025
Junior subordinated notes issued to capital trusts	185,778		122,408		—		—		122,408
Accrued interest payable	3,709		3,709		3,709		—		—
Derivative financial instruments	40,499		40,499		7,209		33,290		—

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Note 14. 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
	March 31,
	2015		2014
Total cost of share-based payment plans during the period	$	3,605	$	2,012
Amount of related income tax benefit recognized in income	1,412		$	790

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. Following May 28, 2014, no more than 10% of the total number of authorized shares may be issued with respect to awards granted after that date, 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 March 31, 2015, there were 4,979,712 shares available for future grants.

Prior to 2014, annual equity-based incentive awards were typically granted to selected officers and employees mid-year. In 2014, these awards began being granted 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 stock options outstanding for the three months endedMarch 31, 2015:

	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, 2014	2,250,714		$	27.94	4.39
Granted	296,413		31.26
Exercised	(7,284	)	19.85
Expired or cancelled	(3,933	)	30.34
Forfeited	(2,928	)	25.00
Options outstanding as of March 31, 2015	2,532,982		$	28.35	4.81	$	11,342
Options exercisable as of March 31, 2015	1,729,575		$	29.07	3.12	$	7,723

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

43

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 three months endedMarch 31, 2015:

	March 31, 2015
Risk-free interest rate	1.71		%
Expected volatility of Company’s stock	30.43		%
Expected dividend yield	1.79		%
Expected life of options	5.9 years
Weighted average fair value per option of options granted during the year	$	8.08

The total intrinsic value of options exercised during the three months endedMarch 31, 2015 and 2014 was $81 thousand and $550 thousand, respectively.

The following is a summary of changes in restricted shares and units for the three months endedMarch 31, 2015:

	Number of Shares and Units		Weighted Average Grant Date Fair Value
Shares Outstanding at December 31, 2014	801,085		$	26.99
Granted	490,504		31.65
Vested	(94,740	)	27.74
Forfeited	(3,539	)	27.08
Shares Outstanding at March 31, 2015	1,193,310		$	28.85

The total intrinsic value of restricted shares that vested during the three months endedMarch 31, 2015 and 2014 was $3.0 million and $1.0 million, respectively.

The Company issued 71,560, 48,569, 56,752 and 65,333 market-based restricted stock units in 2015, 2014, 2013 and 2012, 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 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 of issuance.

As of March 31, 2015, there was $31.6 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 March 31, 2015, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 2.7 years.

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Note 15. Derivative Financial Instruments

The Company offers various derivatives, including interest rate swaps and foreign currency forward contracts, to our 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 March 31, 2015 was approximately $3 thousand, and the net amount payable as of December 31, 2014 was approximately $1.1 million.  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 March 31, 2015, the Company’s credit exposure relating to interest rate swaps was approximately $33.7 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 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 $187 thousand at March 31, 2015.  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 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 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 March 31, 2015 and December 31, 2014 (in thousands):

	Asset Derivatives								Liability Derivatives
	March 31, 2015				December 31, 2014				March 31, 2015					December 31, 2014
	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)	$	—	$	—	$	—	$	—	$	187	$	(14	)	$	197	$	(15	)
Stand-alone derivative instruments: (2)
Interest rate swap contracts	2,072,809		50,633		1,509,930		37,039		1,268,604		(34,942		)	2,001,787		(30,761		)
Interest rate options contracts	617,089		982		55,830		283		67,089		(260		)	55,830		(283		)
Foreign exchange contracts	49,017		4,470		27,402		2,276		46,904		(4,181		)	27,002		(2,109		)
Spot foreign exchange contracts	210		6		512		5		462		(46		)	304		(18		)
Mortgage related derivatives	955,583		12,192		871,446		6,785		1,271,000		(7,719		)	879,841		(7,313		)
Total non-hedging derivative instruments	3,694,708		68,283		2,465,120		46,388		2,654,059		(47,148		)	2,964,764		(40,484		)
Total	$	3,694,708	$	68,283	$	2,465,120	$	46,388	$	2,654,246	$	(47,162	)	$	2,964,961	$	(40,499	)

⁽¹⁾ Hedged fixed-rate commercial real estate loans

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

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

	Three Months Ended
	March 31,
	2015			2014
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts	$	1		$	—
Stand-alone derivative instruments:
Interest rate swap contracts	11,125			9
Interest rate options contracts	723			—
Foreign exchange contracts	122			61
Spot foreign exchange contracts	(28		)	8
Mortgage related derivatives	908			3
Total non-hedging derivative instruments	12,850			81
Total	$	12,851		$	81

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 March 31, 2015 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 swaps, caps and floors	$	17,959	$	—	$	17,959	$	34,795	$	—	$	34,795
Foreign currency forward contracts	2,307		—		2,307		2,050		—		2,050
Mortgage related derivatives	1,394		—		1,394		8,134		—		8,134
Total derivatives	21,660		—		21,660		44,979		—		44,979
Repurchase agreements	—		—		—		240,478		—		240,478
Total	$	21,660	$	—	$	21,660	$	285,457	$	—	$	285,457

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	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	19	$	(19	)	$	—	$	—	$	10,604	$	(19	)	$	(10,585	)	$	—
Counterparty B	27		(27		)	—		—		4,962		(27		)	(4,935		)	—
Counterparty C	9,792		(9,792		)	—		—		13,218		(9,792		)	(3,426		)	—
Other counterparties	11,822		(6,917		)	—		4,905		16,195		(6,918		)	(7,745		)	1,532
Total derivatives	21,660		(16,755		)	—		4,905		44,979		(16,756		)	(26,691		)	1,532
Repurchase agreements	—		—			—		—		240,478		—			(240,478		)	—
Total	$	21,660	$	(16,755	)	$	—	$	4,905	$	285,457	$	(16,756	)	$	(267,169	)	$	1,532

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2014 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 swaps, caps and floors	$	10,727	$	—	$	10,727	$	29,916	$	—	$	29,916
Foreign currency forward contracts	1,525		—		1,525		709		—		709
Mortgage related derivatives	1,700		—		1,700		7,302		—		7,302
Total derivatives	13,952		—		13,952		37,927		—		37,927
Repurchase agreements	—		—		—		219,824		—		219,824
Total	$	13,952	$	—	$	13,952	$	257,751	$	—	$	257,751

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	13	$	(13	)	$	—	$	—	$	9,556	$	(13	)	$	(9,543	)	$	—
Counterparty B	145		(145		)	—		—		3,736		(145		)	(3,591		)	—
Counterparty C	6,123		(6,123		)	—		—		10,335		(6,122		)	(4,213		)	—
Other counterparties	7,671		(3,920		)	—		3,751		14,300		(3,920		)	(8,663		)	1,717
Total derivatives	13,952		(10,201		)	—		3,751		37,927		(10,200		)	(26,010		)	1,717
Repurchase agreements	—		—			—		—		219,824		—			(219,824		)	—
Total	$	13,952	$	(10,201	)	$	—	$	3,751	$	257,751	$	(10,200	)	$	(245,834	)	$	1,717

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Note 16.   Operating Segments

The Company's operations 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 and deposit gathering 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 dependent on changes in its 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 customers and depositors.  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 offered through the Company's leasing subsidiaries, LaSalle Systems Leasing, Inc., Celtic Leasing Corp. and Cole Taylor Equipment Finance, LLC. The leasing subsidiaries invest directly in equipment that we lease (referred to as direct finance, leveraged or operating leases) to "Fortune 1000," large middle-market companies and healthcare 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 subsidiaries also specialize in selling third party equipment maintenance contracts to large companies.

The mortgage banking segment originates mortgage loans for sale to investors and for the Company's portfolio through its retail and broker channels. This segment also services residential mortgage loans for various investors and for loans owned by the Company. The mortgage banking segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of customers.

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 March 31, 2015
Net interest income	$	104,126	$	3,015	$	6,254		$	113,395
Provision for credit losses	4,974		—		—			4,974
Non-interest income	31,517		25,203		24,548			81,268
Non-interest expense (1)	95,334		13,656		30,930			139,920
Income tax expense	9,962		5,747		(51		)	15,658
Net income	$	25,373	$	8,815	$	(77	)	$	34,111
Total assets	$	12,246,659	$	937,903	$	1,143,748		$	14,328,310
Three months ended March 31, 2014
Net interest income	$	66,324	$	1,004	$	—		$	67,328
Provision for credit losses	1,150		—		—			1,150
Non-interest income	23,701		12,852		59			36,612
Non-interest expense	68,334		7,713		—			76,047
Income tax expense	4,483		2,291		—			6,774
Net income	$	16,058	$	3,852	$	59		$	19,969
Total assets	$	8,968,195	$	469,108	$	—		$	9,437,303

⁽¹⁾  Includes merger related expenses of $8.1 million and $680 thousand in the banking segment for the three months ended March 31, 2015 and 2014, respectively.

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Note 17.   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 are 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 is $25 per share, at a rate of 8.00% per annum, payable quarterly. The Company Series A Preferred Stock is included in Tier 1 capital for regulatory capital purposes.

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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 income, mortgage banking revenue, commercial deposit and treasury management fees, trust and asset management fees, card fees and capital markets and international banking fees. Non-interest income also included 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 gain on sale of assets and other operating income. During the periods under report, non-interest expenses included salaries and employee benefits, 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, prepayment fees on interest bearing liabilities and other operating expenses. Additionally, dividends on preferred shares reduced net income available to common stockholders.

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 banking, leasing and mortgage banking 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 August 18, 2014, the Company completed the Taylor Capital Group, Inc. ("Taylor Capital") merger (the "Merger"). Total consideration paid by the Company was $648.8 million, including $519.3 million in common stock and $129.5 million in cash. The Company issued 19.6 million shares of common stock as a result of the Merger. In addition, each share of Taylor Capital’s Perpetual Non-Cumulative Preferred Stock, Series A was converted into one share of the Company's Perpetual Non-Cumulative Preferred Stock, Series A with substantially identical terms. The Company issued 4,000,000 shares of its Series A preferred stock in connection with the Merger. Holders of the Company’s Series A 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 amount, which is $25 per share, at a rate of 8.00% per annum, payable quarterly.

The Company had net income of $34.1 million for the three months ended March 31, 2015 compared to net income of $20.0 million for the three months ended March 31, 2014. Net income available to common stockholders was $32.1 million for the three months ended March 31, 2015. Fully diluted earnings per common share were $0.43 for the three months ended March 31, 2015 compared to $0.36 per common share for the three months ended March 31, 2014.

The results of operations for the three months ended March 31, 2015 and 2014 were impacted by $8.1 million and $680 thousand in merger related expenses, respectively. See "Non-interest Expenses" section for a detailed schedule of merger related 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

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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 reported.  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 Losses.  The allowance for loan 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 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 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 losses, based on their judgments about information available to them at the time of their examination. We believe the allowance for loan losses is appropriate and properly recorded in the financial statements.  See “Allowance for Loan 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.  At March 31, 2015, the aggregate residual value of the equipment leased under our direct finance, leveraged, and operating leases totaled $125.9 million.  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, 2014 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 March 31, 2015, the Company had $1.0 million of 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.  As of March 31, 2015, the Company had approximately $7 thousand of accrued interest related to tax reserves.  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 income.

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 13 to the consolidated financial statements for a complete discussion on the Company’s use of fair valuation of assets and liabilities and the related measurement techniques.

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Goodwill.  The excess of the cost of an acquisition over the fair value of the net assets acquired consists of goodwill, and core deposit and client relationship intangibles.  See Note 8 to the audited consolidated financial statements contained in our Annual Report Form 10-K for the year ended December 31, 2014 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 has three reporting units: banking, leasing and mortgage banking.  No impairment losses were recognized during the three months endedMarch 31, 2015 or 2014. We are not aware of any events or circumstances subsequent to our annual goodwill impairment testing date of December 31, 2014 that would indicate impairment of goodwill at March 31, 2015. The carrying amount of goodwill was $711.5 million at March 31, 2015 and December 31, 2014.

Valuation 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 resolved by an internal committee.

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.

Reconciliations of net interest income and net interest margin on a tax-equivalent basis 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.

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	Three Months Ended March 31,
(dollars in thousands)	2015						2014
	Average				Yield/		Average				Yield/
	Balance		Interest		Rate		Balance		Interest		Rate
Interest Earning Assets:
Loans held for sale	$	658,169	$	5,785	3.52	%	$	294	$	—	—	%
Loans (1) (2)	8,568,549		93,061		4.40		5,283,351		53,946		4.14
Loans exempt from federal income taxes (3)	320,137		3,344		4.18		323,526		3,536		4.37
Taxable investment securities	1,556,530		9,934		2.55		1,384,371		8,146		2.35
Investment securities exempt from federal income taxes (3)	1,126,133		14,021		4.98		935,863		12,410		5.30
Federal funds sold	16		—		—		5,889		5		0.34
Other interest earning deposits	102,346		62		0.25		187,049		113		0.25
Total interest earning assets	12,331,880		$	126,207	4.15		8,120,343		$	78,156	3.90
Non-interest earning assets	2,031,364						1,247,599
Total assets	$	14,363,244					$	9,367,942
Interest Bearing Liabilities:
Deposits:
NOW and money market deposit	$	3,937,707	$	1,595	0.16	%	$	2,727,620	$	848	0.13	%
Savings deposit	952,345		120		0.05		862,197		109		0.05
Time deposits	1,896,565		2,930		0.63		1,434,114		2,812		0.80
Short-term borrowings	700,252		277		0.16		200,578		100		0.20
Long-term borrowings and junior subordinated notes	277,311		1,812		2.61		221,694		1,378		2.49
Total interest bearing liabilities	7,764,180		$	6,734	0.35		5,446,203		$	5,247	0.39
Non-interest bearing deposits	4,199,948						2,372,866
Other non-interest bearing liabilities	361,685						213,650
Stockholders’ equity	2,037,431						1,335,223
Total liabilities and stockholders’ equity	$	14,363,244					$	9,367,942
Net interest income/interest rate spread (4)			$	119,473	3.80	%			$	72,909	3.51	%
Less: taxable equivalent adjustment			6,078						5,581
Net interest income, as reported			$	113,395					$	67,328
Net interest margin (5)					3.73	%					3.36	%
Tax equivalent effect					0.20	%					0.28	%
Net interest margin on a fully tax equivalent basis (5)					3.93	%					3.64	%

(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 35% tax rate.

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

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

Net interest income on a fully tax equivalent basis increased$46.6 million during the three months ended March 31, 2015 compared to the three months ended March 31, 2014 primarily due to the interest earning assets acquired through the Merger. The net interest margin, expressed on a fully tax equivalent basis, was 3.93% for the first quarter of 2015 and 3.64% for the first quarter of 2014. Net interest income in the first quarter of 2015 included interest income of $8.6 million resulting from accretion of the acquisition accounting discount recorded on loans acquired in the Merger ($7.9 million for non-purchased credit-impaired loans and $628 thousand for purchased credit-impaired loans). Excluding the purchase accounting loan discount accretion on loans acquired through the Merger, our net interest margin on a fully tax equivalent basis would have been 3.62% for the three months ended March 31, 2015.

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Non-interest Income

	Three Months Ended
	March 31,
	2015			2014		Increase/ (Decrease)			Percentage Change
Non-interest income (in thousands):
Lease financing, net	$	25,080		$	13,196	$	11,884		90.1	%
Mortgage banking revenue	24,544			59		24,485			NM
Commercial deposit and treasury management fees	11,038			7,144		3,894			54.5
Trust and asset management fees	5,714			5,207		507			9.7
Card fees	3,927			2,701		1,226			45.4
Capital markets and international banking fees	1,928			978		950			97.1
Consumer and other deposit service fees	3,083			2,935		148			5.0
Brokerage fees	1,678			1,325		353			26.6
Loan service fees	1,485			965		520			53.9
Increase in cash surrender value of life insurance	839			827		12			1.5
Net (loss) gain on investment securities	(460		)	317		(777		)	(245.1	)
Net loss on sale of assets	4			7		(3		)	(42.9	)
Other operating income	2,408			951		1,457			153.2
Total non-interest income	$	81,268		$	36,612	$	44,656		122.0	%

NM - not meaningful

Non-interest income increased by $44.7 million, or 122.0%, for the three months ended March 31, 2015 compared to the three months ended March 31, 2014.

• Mortgage banking revenue increased due to the mortgage operations acquired through the Merger.

• Leasing revenues increased due to higher fees and promotional revenue from the sale of third-party equipment maintenance contracts and higher lease residual realization.

• Commercial deposit and treasury management fees increased due to new customer activity as well as the increased customer base as a result of the Merger.

• Other operating income increased due to higher earnings from investments in Small Business Investment Companies.

• Card fees increased due to a new payroll prepaid card program that started in the second quarter of 2014 as well as higher credit card fees.

• Capital markets and international banking services fees increased due to higher swap, commercial real estate advisory and syndication fees.

• Trust and asset management fees increased due to the addition of new customers and the impact of higher equity values.

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Non-interest Expenses

	Three Months Ended
	March 31,
	2015		2014		Increase/ (Decrease)		Percentage Change
Non-interest expenses (in thousands):
Salaries and employee benefits	$	84,786	$	44,377	$	40,409	91.1	%
Occupancy and equipment	12,940		9,592		3,348		34.9
Computer services and telecommunication	8,904		5,084		3,820		75.1
Advertising and marketing	2,446		2,081		365		17.5
Professional and legal	2,670		1,779		891		50.1
Other intangibles amortization	1,518		1,240		278		22.4
Branch exit and facilities impairment charges	7,391		—		7,391		100.0
Net loss recognized on other real estate owned and other related	896		583		313		53.7
Prepayment fees on interest bearing liabilities	85		—		85		100.0
Other operating expenses	18,284		11,311		6,973		61.6
Total non-interest expenses	$	139,920	$	76,047	$	63,873	84.0	%

Non-interest expenses increased by $63.9 million, or 84.0%, for the three months ended March 31, 2015 from the three months ended March 31, 2014. Non-interest expenses include $8.1 million and $680 thousand in expenses related to the Merger for the three months ended March 31, 2015 and 2014, respectively.

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

	Three Months Ended
	March 31,
	2015		2014
Merger related expenses:
Salaries and employee benefits	$	33	$	104
Occupancy and equipment expense	177		—
Computer services and telecommunication expense	270		13
Advertising and marketing expense	—		90
Professional and legal expense	190		410
Branch exit and facilities impairment charges	7,391		—
Other operating expenses	8		63
Total merger related expenses	$	8,069	$	680

Other explanations for changes are as follows:

• Salaries and employee benefits increased primarily due to the increased staff from the Merger.

• Other operating expense increased primarily as a result of an increase in filing and other loan expense, higher FDIC assessments due to our larger balance sheet, higher currency delivery expenses related to new treasury management accounts for customers and clawback expense related to our loss share agreements with the FDIC.

• Computer services and telecommunication expenses increased due primarily to the Merger as well as an increase in spending on IT security and our data warehouse.

• Professional and legal expense increased due to higher consulting expense.

• Occupancy and equipment expense increased due to the additional offices acquired in the Merger.

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Income Taxes

Income tax expense for the three months endedMarch 31, 2015 was $15.7 million compared to $6.8 million for the three months endedMarch 31, 2014. The increase was primarily due to an increase in our pre-tax income during the three months endedMarch 31, 2015.

Balance Sheet

Total assets decreased$273.8 million, or 1.9%, from $14.6 billion at December 31, 2014 to $14.3 billion at March 31, 2015. 

• Cash and cash equivalents decreased$11.0 million, or 3.5% from $312.1 million at December 31, 2014 to $301.1 million at March 31, 2015.

• Investment securities decreased$45.7 million, or 1.7%, from December 31, 2014 to March 31, 2015 mostly as a result of principal payments on mortgage-backed securities.

• Total loans, excluding purchased credit-impaired and covered loans, decreased by $137.8 million to $8.7 billion at March 31, 2015 from December 31, 2014 primarily due to seasonality in our customer activity and some commercial real estate pay-offs. The first quarter is often the softest quarter from a loan growth perspective.

Total liabilities decreased by $303.8 million, or 2.4%, from $12.6 billion at December 31, 2014 to $12.3 billion at March 31, 2015 primarily due to less borrowings.

• Total deposits increased by $28.6 million, or 0.3%, to $11.0 billion at March 31, 2015 from December 31, 2014 primarily due to strong noninterest bearing deposit flows.

• Noninterest bearing deposits increased by $172.2 million, or 4.2%, compared to December 31, 2014.

• Total borrowings decreased by $313.5 million, or 26.1%, to $886.6 million at March 31, 2015 primarily due to the maturity of a short term FHLB advance.

Total stockholders’ equity increased$30.0 million to $2.1 billion at March 31, 2015 compared to December 31, 2014 primarily as a result of earnings for the quarter 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, by type of security as indicated (in thousands):

	March 31, 2015				December 31, 2014				March 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
U.S. Government sponsored agencies and enterprises	$	64,411	$	66,070	$	64,612	$	65,873	$	50,291	$	51,836
States and political subdivisions	381,704		403,628		390,076		410,854		19,285		19,350
Residential mortgage-backed securities	666,904		678,475		713,413		720,563		666,707		673,515
Commercial mortgage-backed securities	174,823		178,458		186,110		187,662		50,841		52,924
Corporate bonds	250,543		252,042		259,526		259,203		272,490		273,853
Equity securities	10,587		10,751		10,531		10,597		10,703		10,572
Total Available for Sale	1,548,972		1,589,424		1,624,268		1,654,752		1,070,317		1,082,050
Held to maturity
States and political subdivisions	764,931		796,783		752,558		782,265		940,610		961,630
Residential mortgage-backed securities	235,928		248,422		240,822		252,796		248,082		261,841
Total Held to Maturity	1,000,859		1,045,205		993,380		1,035,061		1,188,692		1,223,471
Total	$	2,549,831	$	2,634,629	$	2,617,648	$	2,689,813	$	2,259,009	$	2,305,521

Loan Portfolio

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

	March 31, 2015				December 31, 2014				March 31, 2014
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Commercial related credits:
Commercial loans	$	3,258,652	37	%	$	3,245,206	36	%	$	1,267,398	23	%
Commercial loans collateralized by assignment of lease payments	1,628,031		18		1,692,258		18		1,472,621		27
Commercial real estate	2,525,640		28		2,544,867		28		1,623,509		29
Construction real estate	184,105		2		247,068		3		132,997		2
Total commercial related credits	7,596,428		85		7,729,399		85		4,496,525		81
Other loans:
Residential real estate	505,558		5		503,287		5		309,137		5
Indirect vehicle	273,105		3		268,840		3		266,044		5
Home equity	241,078		3		251,909		3		258,120		5
Other consumer loans	77,645		1		78,137		1		64,812		1
Total other loans	1,097,386		12		1,102,173		12		898,113		16
Total loans excluding purchased credit-impaired and covered loans	8,693,814		97		8,831,572		97		5,394,638		97
Purchased credit-impaired and covered loans (1)	227,514		3		251,645		3		173,677		3
Total loans	$	8,921,328	100	%	$	9,083,217	100	%	$	5,568,315	100	%

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

Gross loans, excluding purchased credit-impaired and covered loans, decreased by $137.8 million to $8.7 billion at March 31, 2015 from December 31, 2014. Gross loans decreased by $161.9 million to $8.9 billion at March 31, 2015 from $9.1 billion at December 31, 2014. This decrease was primarily due to seasonality in our customer activity. The first quarter is often the softest quarter from a loan growth perspective.

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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 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.

Non-performing loans exclude loans held for sale and purchased credit-impaired loans. Fair value of these loans as of acquisition includes estimates of credit losses. See Note 6 of the notes to our consolidated financial statements for further information regarding purchased credit-impaired loans.

The following table sets forth the amounts of non-performing loans and non-performing assets at the dates indicated (dollars in thousands):

	March 31, 2015			December 31, 2014			March 31, 2014
Non-performing loans:
Non-accruing loans	$	81,571		$	82,733		$	118,023
Loans 90 days or more past due, still accruing interest	1,707			4,354			747
Total non-performing loans	83,278			87,087			118,770
Other real estate owned	21,839			19,198			20,928
Repossessed assets	160			93			772
Total non-performing assets	$	105,277		$	106,378		$	140,470
Total allowance for loan losses	$	113,412		$	110,026		$	106,752
Accruing restructured loans (1)	16,874			15,603			25,797
Total non-performing loans to total loans	0.93		%	0.96		%	2.13		%
Total non-performing assets to total assets	0.73			0.73			1.49
Allowance for loan losses to non-performing loans	136.18			126.34			89.88

⁽¹⁾  Accruing restructured loans consists primarily of residential real estate and home equity 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 at the time of restructuring. A period of sustained repayment for at least six months generally is required for return to accrual status.

Occasionally, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established.

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Non-performing assets consist 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 income statement. 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 MB Financial Bank obtains title, repossessed vehicles are not included in loans, but are classified as “other assets” on the 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.  Other real estate owned related to the Heritage, Benchmark, Broadway, and New Century FDIC-assisted transactions totaled $15.0 million and $18.2 million at March 31, 2015 and December 31, 2014, respectively, much of which is subject to the loss-share agreements with the FDIC.  See Note 6 of the notes to our consolidated financial statements for further information.

The following table presents a summary of other real estate owned, excluding assets related to FDIC-assisted transactions, for the three months endedMarch 31, 2015 and 2014 (in thousands):

	March 31,
	2015			2014
Beginning balance	$	19,198		$	23,289
Transfers in at fair value less estimated costs to sell	4,615			539
Fair value adjustments	(922		)	(140		)
Net gains on sales of other real estate owned	34			18
Cash received upon disposition	(1,086		)	(2,778		)
Ending balance	$	21,839		$	20,928

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, excluding purchased credit-impaired loans, at the dates indicated (in thousands):

	March 31, 2015		December 31, 2014
Commercial loans	$	59,831	$	16,065
Commercial loans collateralized by assignment of lease payments	9,088		2,264
Commercial real estate	38,784		37,322
Total	$	107,703	$	55,651

Potential problem loans increased primarily due to normal rotation in the portfolio.

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Allowance for Loan Losses

Management believes the allowance for loan 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 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 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.

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 loan, with the exception of those included in large groups of smaller-balance homogeneous consumer related loans, is risk rated between one and nine by the originating loan officer, Senior Credit Management, Loan Review or any loan committee. Loans rated "one" represent those loans least likely to default and a loan rated "nine" represents a loss. The probability of loans defaulting for each risk rating, sometimes referred to as default factors, are 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 the migration of loan risk ratings and historical default data over a multi-year period to develop our estimated default factors (EDFs). The model tracks annual loan rating migrations by loan type and currently uses loan risk rating migrations for 14 years. The migration data is adjusted by using average losses for an economic cycle (approximately 13 years) to develop EDFs by loan type, risk rating and maturity. EDFs are updated annually in December.

Estimated loan 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 (which incorporates estimated 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 (ALLL) also includes adjustments for macroeconomic factors. 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 has shown to be a statistically reliable predictor of our credit losses relative to our long term average credit losses. We tested over 20 economic variables (U.S. manufacturing index, unemployment rate, U.S. GDP growth, etc.). We annually review this data to determine that such a relationship continues to exist. We currently use the following macroeconomic indicators in our macroeconomic factor computation:

Commercial loans and lease loans:  initial unemployment insurance claims in Illinois, our prior period charge-off rates and crude oil prices.

Commercial real estate loans and construction loans:  M2 Money stock, our prior period charge-off rates and the U.S. commercial real estate index.

Using the indicators noted above, a predicted charge-off percentage is calculated. The predicted charge-off percentage is then compared to the cycle average charge-off percentage, and a macroeconomic adjustment factor is calculated. The macroeconomic adjustment factor is applied to each commercial loan type. Each year, we review the predictive nature of the macroeconomic factors by comparing actual charge-offs to the predicted model charge-offs, re-run our regression analysis and re-calibrate the macroeconomic factors as appropriate.

The commercial related general loss reserve was $88.4 million as of March 31, 2015 and $85.1 million as of December 31, 2014. Reserves on impaired commercial related loans are included in the “Commercial Related Specific Reserves” section below. 

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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 commercial 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 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 $5.7 million as of March 31, 2015 compared to $5.2 million as of December 31, 2014 . 

Consumer Related Reserves.  Pools of homogenous 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 $19.3 million at March 31, 2015 and $19.8 million at December 31, 2014.

We consistently apply our methodology for determining the appropriateness of the allowance for loan 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 losses: historical net charge-offs as they relate to prior periods' allowance for loan loss, comparison of historical loan migration in past years compared to the current year, overall credit trends and ratios and any significant changes in loan concentrations. 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.

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

	Three Months Ended
	March 31,
	2015			2014
Balance at beginning of period	$	114,057		$	113,462
Provision for credit losses	4,974			1,150
Charge-offs:
Commercial loans	569			90
Commercial loans collateralized by assignment of lease payments	—			—
Commercial real estate	2,034			7,156
Construction real estate	3			265
Residential real estate	579			56
Home equity	444			920
Indirect vehicles	874			619
Other consumer loans	424			495
Total charge-offs	4,927			9,601
Recoveries:
Commercial loans	242			1,628
Commercial loans collateralized by assignment of lease payments	749			—
Commercial real estate	1,375			485
Construction real estate	2			519
Residential real estate	72			99
Home equity	101			442
Indirect vehicles	475			133
Other consumer loans	69			78
Total recoveries	3,085			3,384
Net charge-offs	1,842			6,217
Allowance for credit losses	117,189			108,395
Allowance for unfunded credit commitments	(3,777		)	(1,643		)
Allowance for loan losses	$	113,412		$	106,752
Total loans	$	8,921,328		$	5,568,315
Ratio of allowance to total loans	1.27		%	1.92		%
Ratio of net charge-offs to average loans	0.08			0.45

Net charge-offs of $1.8 million were recorded in the three months endedMarch 31, 2015 compared to net charge-offs of $6.2 million in the three months endedMarch 31, 2014. A provision for credit losses of $5.0 million was recorded for the three months endedMarch 31, 2015 compared to $1.2 million for the three months endedMarch 31, 2014.

The provision for credit losses for the three months endedMarch 31, 2015 included a negative provision for credit losses of $550 thousand for the legacy MB Financial portfolio and a positive provision of $5.5 million related to the acquired Taylor Capital portfolio for loan renewals subsequent to the acquisition date and the establishment of a corresponding general reserve for Taylor Capital loans in excess of the loan discount. We anticipate recording a provision related to the acquired portfolio in future quarters related to renewing Taylor loans which will largely offset the accretion from non-purchase credit-impaired loans.

Additions to the allowance for loan 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 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 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.

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

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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 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 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 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 loss allowances may become necessary.

Lease Investments

The lease portfolio is comprised of various types of equipment, generally technology related, including computer systems and satellite equipment, material handling and general manufacturing equipment. 

Lease investments by categories follow (in thousands):

	March 31, 2015			December 31, 2014			March 31, 2014
Direct finance leases:
Minimum lease payments	$	338,072		$	340,602		$	179,661
Estimated unguaranteed residual values	68,254			70,469			30,615
Less: unearned income	(29,652		)	(31,229		)	(14,963		)
Direct finance leases (1)	$	376,674		$	379,842		$	195,313
Leveraged leases:
Minimum lease payments	$	8,040		$	10,689		$	19,986
Estimated unguaranteed residual values	1,136			1,586			2,303
Less: unearned income	(390		)	(540		)	(1,281		)
Less: related non-recourse debt	(7,780		)	(10,330		)	(19,157		)
Leveraged leases (1)	$	1,006		$	1,405		$	1,851
Operating leases:
Equipment, at cost	$	257,527		$	257,495		$	210,539
Less accumulated depreciation	(98,336		)	(94,662		)	(87,950		)
Lease investments, net	$	159,191		$	162,833		$	122,589

⁽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

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for a leveraged lease, they are further classified as leverage 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 $41.2 million at March 31, 2015, $38.5 million at December 31, 2014 and $21.1 million at March 31, 2014.

At March 31, 2015, 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
2015	$	7,078	$	407	$	8,769	$	16,254
2016	7,476		605		10,075		18,156
2017	20,308		105		9,460		29,873
2018	14,206		19		8,395		22,620
2019	9,916		—		4,101		14,017
Thereafter	9,270		—		15,706		24,976
	$	68,254	$	1,136	$	56,506	$	125,896

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 generally reviewed quarterly, and any write-downs or charge-offs deemed necessary are recorded in the period in which they become known. To mitigate this risk of loss, we usually limit individual leased equipment residuals to approximately $1 million per transaction and seek to diversify both the type of equipment leased and the industries in which the lessees participate. Often times, there are several individual lease schedules under one master lease. There were 3,680 leases at March 31, 2015 compared to 3,793 at December 31, 2014.  The average residual value per lease schedule was approximately $34 thousand at March 31, 2015 and December 31, 2014.  The average residual value per master lease schedule was approximately $144 thousand at March 31, 2015 and $155 thousand at December 31, 2014, respectively.

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 primarily include net income, adjusted for items in net income that did not impact cash.  Net cash flows provided by operating activities were $57.0 million for the three months endedMarch 31, 2015 compared to net cash flows provided by operating activities of $32.5 million for the three months endedMarch 31, 2014. The change is primarily due to the increase in sales of loans held for sale as a result of the acquisition of the mortgage operations through the Merger.

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 three months endedMarch 31, 2015, the Company had net cash flows provided by investing activities of $230.5 million compared to net cash flows provided by investing activities of $209.9 million for the three months endedMarch 31, 2014. 

Cash flows from financing activities include transactions and events whereby cash is obtained from depositors, creditors or investors.  For the three months endedMarch 31, 2015, the Company had net cash flows used in financing activities of $298.5 million compared to net cash flows used in financing activities of $202.3 million for the three months endedMarch 31, 2014.  The change in cash flows from financing activities was primarily due to less of an increase in deposits compared to the increase during the three months endedMarch 31, 2014.

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 March 31, 2015, there were no firm lending commitments in place, management believes that we could borrow approximately $308 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 March 31,

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2015, the Company had $304.1 million outstanding in FHLB advances, and could borrow an additional amount of approximately $1.2 billion.  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 March 31, 2015, the Company had approximately $1.7 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. In addition, the Company has a $35.0 million unsecured line of credit with a correspondent bank. As of March 31, 2015, none was outstanding. The holding company had $38.1 million in cash as of March 31, 2015.

See Notes 9 and 10 of the Financial Statements presented under 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 March 31, 2015 as compared to December 31, 2014.

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 an amount that would cause MB Financial Bank’s total risk-based capital ratio, Tier 1 capital to risk-weighted assets ratio and Tier 1 capital to average assets ratio to fall below 12%, 9% and 8%, respectively.  See “Item 1. Business — Supervision and Regulation” in our Annual Report on Form 10-K for the year ended December 31, 2014.

At March 31, 2015, the Company’s total risk-based capital ratio was 13.22%, Tier 1 capital to risk-weighted assets ratio was 12.24%, common equity Tier 1 capital to risk-weighted assets ratio was 9.79% and Tier 1 capital to average asset ratio was 10.80%. At March 31, 2015, MB Financial Bank’s total risk-based capital ratio was 12.75%, Tier 1 capital to risk-weighted assets ratio was 11.77%, common equity Tier 1 capital to risk-weighted assets ratio was 11.77% and Tier 1 capital to average asset ratio was 10.36%. MB Financial Bank was categorized as “Well-Capitalized” at March 31, 2015 under the regulations of the Office of the Comptroller of the Currency.

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 and net interest margin on a fully tax equivalent basis. 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 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income and net interest margin on a fully tax equivalent basis, and accordingly believes that providing these measures may be useful for peer comparison purposes. 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 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.

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Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) expected revenues, cost savings, synergies and other benefits from the Merger and our other merger and acquisition activities might not be realized within the anticipated time frames or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; (2) the 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 loans we originate and loans we acquire from other financial institutions; (3) results of examinations by the Office of Comptroller of Currency, the Federal Reserve Board, the Consumer Financial Protection Bureau and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for loan and lease losses or write-down assets; (4) competitive pressures among depository institutions; (5) interest rate movements and their impact on customer behavior, net interest margin and the value of our mortgage servicing rights; (6) the possibility that our mortgage banking business may increase volatility in our revenues and earnings and the possibility that the profitability of our mortgage banking business could be significantly reduced if we are unable to originate and sell mortgage loans at profitable margins or if changes in interest rates negatively impact the value of our mortgage servicing rights; (7) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (8) fluctuations in real estate values; (9) the ability to adapt successfully to technological changes to meet customers’ needs and developments in the market-place; (10) our ability to realize the residual values of our direct finance, leveraged, and operating leases; (11) our ability to access cost-effective funding; (12) changes in financial markets; (13) changes in economic conditions in general and in the Chicago metropolitan area in particular; (14) the costs, effects and outcomes of litigation; (15) new legislation or regulatory changes, including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and regulations adopted thereunder, changes in capital requirements pursuant to the Dodd-Frank Act, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws or interpretations thereof by taxing authorities; (16) changes in accounting principles, policies or guidelines; (17) our future acquisitions of other depository institutions or lines of business; and (18) future goodwill impairment due to changes in our business, changes in market conditions, or other factors.

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

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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 15 to the Consolidated Financial Statements.

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, have similar maturities or repricing dates, are based on different indexes 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 negative gap would tend to adversely affect net interest income.  Conversely, during a period of falling interest rates, a negative gap position would tend to result in an increase in net interest income.

The following table sets forth the amounts of interest earning assets and interest bearing liabilities outstanding at March 31, 2015 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 March 31, 2015 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 expected prepayment assumptions.  While NOW, money market and savings deposit accounts have adjustable rates, it is assumed

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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: 4%, 10%, and 6%, respectively, in the first three months, 11%, 26%, and 15%, respectively, in the next nine months, 52%, 58%, and 57%, respectively, from one year to five years, and 33%, 6%, and 22%, 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	$	50,574		$	470		$	1,168		$	—		$	52,212
Investment securities	238,601			294,480			1,439,466			705,413			2,677,960
Loans held for sale	686,838			—			—			—			686,838
Loans, including covered loans	4,179,622			1,709,199			2,855,706			176,801			8,921,328
Total interest earning assets	$	5,155,635		$	2,004,149		$	4,296,340		$	882,214		$	12,338,338
Interest Bearing Liabilities:
NOW and money market deposit accounts	$	277,677		$	756,950		$	2,191,369		$	776,822		$	4,002,818
Savings deposits	53,111			149,719			550,665			216,065			969,560
Time deposits	605,265			762,778			383,446			5,135			1,756,624
Short-term borrowings	408,403			59,750			133,289			13,789			615,231
Long-term borrowings	4,983			53,911			24,645			1,938			85,477
Junior subordinated notes issued to capital trusts	185,874			—			—			—			185,874
Total interest bearing liabilities	$	1,535,313		$	1,783,108		$	3,283,414		$	1,013,749		$	7,615,584
Rate sensitive assets (RSA)	$	5,155,635		$	7,159,784		$	11,456,124		$	12,338,338		$	12,338,338
Rate sensitive liabilities (RSL)	1,535,313			3,318,421			6,601,835			7,615,584			7,615,584
Cumulative GAP (GAP=RSA-RSL)	3,620,322			3,841,363			4,854,289			4,722,754			4,722,754
RSA/Total assets	35.98		%	49.97		%	79.95		%	86.11		%	86.11		%
RSL/Total assets	10.72			23.16			46.08			53.15			53.15
GAP/Total assets	25.27			26.81			33.88			32.96			32.96
GAP/RSA	70.22			53.65			42.37			38.28			38.28

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, 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	March 31, 2015					December 31, 2014
Levels of	Dollar			Percentage		Dollar			Percentage
Interest Rates	Change			Change		Change			Change
+ 2.00%	$	22,701		5.20	%	$	19,270		4.60	%
+ 1.00%	10,058			2.31		7,930			1.89
- 1.00%	(18,588		)	(4.26	)	(20,299		)	(4.85	)

In the interest rate sensitivity table above, changes in net interest income between March 31, 2015 and December 31, 2014 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.

68

The assumptions used in our interest rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates on net interest income.  Our model assumes that a portion of our variable rate loans that have minimum interest rates will remain in our portfolio regardless of changes in the interest rate environment.  Actual results will differ from simulated results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and management strategies.

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 March 31, 2015 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 March 31, 2015, 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 March 31, 2015, 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.

69

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

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, 2014.

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

The following table sets forth information for the three months ended March 31, 2015 with respect to our repurchases of our outstanding common shares:

	Total Number of Shares Purchased (1)	Average Price Paid per Share		Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 1, 2015 — January 31, 2015	5,344	$	32.86	—	—
February 1, 2015 — February 28, 2015	24,944	31.45		—	—
March 1, 2015 — March 31, 2015	818	30.66		—	—
Total	31,106	$	31.67	—

(1)          Represents shares withheld to satisfy tax withholding obligations upon the exercise of stock options and vesting of restricted stock awards.

Item 6.   Exhibits

See Exhibit Index.

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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:	May 6, 2015	By:	/s/Mitchell Feiger
			Mitchell Feiger
			President and Chief Executive Officer
			(Principal Executive Officer)
Date:	May 6, 2015	By:	/s/Jill E. York
			Jill E. York
			Vice President and Chief Financial Officer
			(Principal Financial and Principal Accounting Officer)

71

EXHIBIT INDEX
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, 2010 (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))
3.1	Charter of the Registrant, as amended (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (File No. 001-36599))
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))
3.2	Bylaws 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

72

EXHIBIT INDEX
Exhibit Number	Description
10.1	Letter Agreement, dated as of December 5, 2008, between the Registrant and the United States Department of the Treasury (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on December 8, 2008 (File No.0-24566-01))
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 Larry J. Kallembach, Brian Wildman, Rosemarie Bouman and Susan Peterson (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 each of Mark A. Heckler and Edward F. Milefchik (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 each of Randall T. Conte, Michael J. Morton, Lawrence G. Ryan and Michael D. Sharkey (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))
10.4E	Separation Agreement by and between MB Financial Bank, National Association, and Larry J. Kallembach
10.5	Form of Letter Agreement dated December 4, 2008 between MB Financial, Inc. and each of Mitchell Feiger, Jill E. York, Larry J. Kallembach, Brian Wildman, Rosemarie Bouman, and Susan Peterson relating to the TARP Capital Purchase Program (incorporated herein by reference to Exhibit 10.5 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 0-24566-01))
10.5A	Form of Compensation Amendment and Waiver Agreement under the TARP Capital Purchase Program between MB Financial, Inc. and certain employees (incorporated herein by reference to Exhibit 10.5A to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 (File No. 0-24566-01))
10.5B	Form of Compensation Amendment and Waiver Agreement under the TARP Capital Purchase Program between MB Financial, Inc. and each of Mark A. Heckler and Edward F. Milefchik (incorporated herein by reference to Exhibit 10.5B to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 (File No. 0-24566-01))
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))

73

EXHIBIT INDEX
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	Avondale Federal Savings Bank Supplemental Executive Retirement Plan Agreement (incorporated herein by reference to Exhibit 10.2 to the Annual Report on Form 10-K of MB Financial, Inc., a Delaware corporation (then known as Avondale Financial Corp.) for the year ended December 31, 1996 (File No. 0-24566))
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, Larry J. Kallembach, Edward F. Milefchik, Susan G. Peterson 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, Larry J. Kallembach, Brian Wildman, and Susan Peterson (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))

74

EXHIBIT INDEX
Exhibit Number	Description
10.17	Form of Non-Qualified Stock Option Agreement for Directors 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))
10.18	Form of Restricted Stock 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))
10.18A	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 10.16 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))

75

EXHIBIT INDEX
Exhibit Number	Description
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))
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 10.2 to the Registrant's Current Report on Form 8-K filed on August 20, 2014 (File No.001-36599))
10.24	Employment Agreement, dated as of July 14, 2013 by and between the Registrant, MB Financial Bank, N.A. and Mark A. Hoppe (included as Exhibit E to the 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 18, 2013 (File No.0-24566-01)))
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)
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))

76

EXHIBIT INDEX
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 March 31, 2015, 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

77

EX-10.4E

EXHIBIT 10.4E

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (the "Release" or “Agreement”) is made and entered into by and between MB Financial Bank N.A. (the "Company") and Larry J. Kallembach (the "Employee").

FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.Separation of Employment. Effective the close of business on October 24, 2014 (the “Separation Date”), the Employee and the Company agree that the Employee’s employment with the Company permanently ended for the business reasons previously reviewed with Employee. The Employee agrees that Employee will not hereinafter seek reinstatement, recall or re-employment with the Company and the Employee acknowledges that the Company is not obligated to process an employment application submitted by Employee in the future.

2.Final Pay and Employee Benefits. Regardless of whether Employee signs this Release, on or before the next regular pay date following the Separation Date, the Company will pay Employee his/her wages or salary earned through the Separation Date and Employee’s earned but unused vacation hours, if any, less all legally required withholdings. Employee shall be entitled to receive Employee’s account balance, if any, under the Company’s 401(k) Profit Sharing Plan in accordance with the terms of such Plan.

3.Equity Grants. Employee’s separation from employment is an “involuntary termination without Cause” for purposes of Employee’s outstanding equity grants. The vesting, exercise and payment terms for such outstanding equity grants shall be determined in accordance with the terms of the applicable grant agreements; provided that the Employee’s Incentive Stock Option awards with grant dates of August 29, 2012 and August 29, 2013 shall vest in full on the Separation Date and remain exercisable for one year after the Separation Date.

4.Separation Payments and Benefits. As consideration for the Employee to enter, comply with and not revoke this Release and to assist the Employee in their transition to alternate employment, the Company shall provide the Employee the following separation payments and benefits:

(a)As a “Separation Payment” to assist the Employee in his/her transition to alternate employment, the Company shall pay the Employee the sum of $808,893.00 on the first regular payroll date occurring after the Separation Date, after the expiration of the seven (7) day revocation period described in Paragraph 13 below and after Employee has signed this Release. This payment represents two (2) years of Employee’s regular base pay of $263,000 (a total of $526,000.00) and two (2) years of Employee’s average annual bonus ($141,446.50) (a total of $282,893.00). All

1

payments made hereunder shall be subject to all applicable withholding and other employment taxes. Employee agrees that he is solely responsible for all income and other taxes associated with the Separation Payment.

(b)One-fourth (¼) of the Separation Payment hereunder shall be in consideration of the release of any claim under the Age Discrimination in Employment Act of 1967, as amended, and as described in Paragraph 4 hereof, and the Employee agrees that such consideration is in addition to anything of value to which Employee is already entitled. The remainder of the separation payment shall be in consideration of both the release of all other claims described below in Paragraph 5, the promise not to file a lawsuit in Paragraph 6, and the Protective Agreement described in Paragraph 8.

(c)No other sums (contingent or otherwise) shall be paid to the Employee with respect of his/her employment by the Company. Employee further acknowledges that by entering into this Release, Employee is receiving more money, compensation and benefits than Employee would otherwise be entitled to receive from the Company.

(d)Provided the Employee makes a timely COBRA election and subject to the restrictions described herein, the Company shall continue to provide the Employee and his dependents with medical, dental, or other health benefits (subject to the terms and conditions set forth in such benefit programs) at the same premium cost to the Employee and at the same coverage level as in effect as of the Employee’s Separation Date until the second anniversary of the Separation Date, without regard to the federal income tax consequences of that continuation. The benefits provided under this subsection (d) will be discontinued prior to the end of the second anniversary of the Separation Date if the Employee receives substantially similar benefits in the aggregate from a subsequent employer. Additionally, the period of continued medical, dental and other health benefits will count towards any COBRA continuation coverage period that may apply to the Employee. The Company or its designee will provide the Employee with a document that describes the Employee’s right to elect COBRA coverage and his rights and obligations under the COBRA laws.

(e)    To further assist in the transition to alternate employment, the Employee will be eligible to receive outplacement services at an outplacement company and level of outplacement services to be determined by the Company, provided that the Employee begins to use such services within six (6) months of the Separation Date and otherwise complies with this Agreement and the Company's applicable outplacement contract.

5.    General Release. As a material inducement to the Company to enter into this Agreement and in consideration of the payments to be made by the Company to the Employee in Paragraph 3 above, the Employee, with full understanding of the contents and legal effect of this Release and having the right and opportunity to consult with his counsel, releases and discharges MB Financial, Inc., the Company, and each of their subsidiaries, affiliates and related entities of any kind, each of their respective shareholders, officers, directors, supervisors, members, managers, employees, agents, representatives, attorneys, and its and their predecessors, successors, heirs, executors, administrators, and assigns (collectively, the "Released Parties") from any and all claims, actions, causes of action, grievances, suits,

2

or complaints of any kind or nature whatsoever, that he ever had or now has, whether fixed or contingent, liquidated or unliquidated, known or unknown, suspected or unsuspected, and whether arising in tort, contract, statute, or equity. Without limiting the generality of the foregoing, it being the intention of the parties to make this Release as broad and as general as the law permits, this Release specifically includes any and all subject matter and claims arising from any alleged violation by the Released Parties under the Age Discrimination in Employment Act of 1967, as amended; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1866, as amended by the Civil Rights Act of 1991 (42 U.S.C. § 1981); the Rehabilitation Act of 1973, as amended; the Employee Retirement Income Security Act of 1974, as amended; the Older Workers’ Benefit Protection Act; the Illinois Wage Payment and Collection Act; the Illinois Human Rights Act, the Cook County Human Rights Ordinance, the Chicago Human Rights Ordinance, and other similar state or local laws; the Americans with Disabilities Act; the Family and Medical Leave Act; the Equal Pay Act; Executive Order 11246; Executive Order 11141; and any other statutory claim, employment or other contract or implied contract claim, or common law claim for wrongful discharge, breach of an implied covenant of good faith and fair dealing, defamation, or invasion of privacy arising out of or involving his employment with the Company, the termination of Employee’s employment with the Company, or involving any continuing effects of Employee’s employment with the Company or the separation of Employee’s employment with the Company. The Employee further acknowledges that he is aware that statutes exist that render null and void releases and discharges of any claims, rights, demands, liabilities, action and causes of action which are unknown to the releasing or discharging party at the time of execution of the release and discharge. The Employee hereby expressly waives, surrenders and agrees to forego any protection to which he would otherwise be entitled by virtue of the existence of any such statute in any jurisdiction including, but not limited to, the State of Illinois. Employee further waives any right to any form of recovery, compensation or other remedy in any action brought by him or on his behalf.

6.    Covenant Not to File a Lawsuit. Employee promises and covenants that Employee will not file any lawsuit against the Released Parties based upon any claim covered under the foregoing release, except that Employee is not prohibited from bringing any claim under the Age Discrimination in Employment Act, as amended, wherein Employee seeks to challenge whether he knowingly and voluntarily entered into this Settlement Agreement and General Release. Additionally, nothing in this Agreement prohibits Employee from filing a complaint or charge with any government agency responsible for enforcing discrimination laws or from cooperating with any such agency’s investigation. Employee further waives any right to any form of recovery, compensation or other remedy in any action brought by him, on his behalf, or relating to his employment.

7.    Indemnification.  The Employee will fully indemnify the Released Parties and hold them harmless from any and all claims, costs, damages, demands, expenses (including without limitation attorneys' fees), judgments, losses or other liabilities arising out of any breach of this Release by Employee, the fact that any representation made herein by Employee was false when made, or the Company’s successful enforcement of this Release against Employee, except that this Paragraph shall not apply to a lawsuit challenging the validity of this Release under the Age Discrimination in Employment Act, as amended.

3

8.    Confidential Information; Protective Covenants Agreement.

(a)The Employee agrees that he will not, for any reason whatsoever, whether voluntarily or involuntarily, use for himself or disclose to any person any "Confidential Information" of the Company acquired by the Employee during his relationship with the Company. Confidential Information includes but is not limited to: (a) any financial, business, planning, operations, services, potential services, products, potential products, technical information and/or know-how, formulas, production, purchasing, marketing, sales, customer, broker, supplier or other information of the Company; (b) any papers, data, records, processes, methods, techniques, systems, models, samples, devices, equipment, compilations, invoices, customer lists or documents of the Company; (c) any information or trade secrets of any third party provided to the Company in confidence or subject to other use or disclosure restrictions or limitations; and (d) any other information, written, oral or electronic, which pertains to the Company's business activities, or interests or with whom or how the Company does business. The Company acknowledges and agrees that Confidential Information does not include (i) information properly in the public domain, or (ii) information in the Employee's possession prior to the date of his original employment with the Company and its predecessors, except to the extent that such information is or has become a trade secret of the Company or is or otherwise has become the property of the Company. In addition, the Employee acknowledges that he and the Company are parties to a Protective Covenants Agreement, that Employee has certain obligations thereunder including obligations relating to confidentiality, non-solicitation of customers, non-solicitation of employees, and non-disparagement, and that such agreement and Employee’s obligations thereunder remain in full force and effect as if set forth fully herein.

(b)It is agreed that breach of Paragraph 8(a) will result in irreparable harm and continuing damages to the Company and it’s business and that the Company's remedy at law for any such breach or threatened breach, will be inadequate and, accordingly, in addition to such other remedies as may be available to the Company at law or in equity in such event (including under the Protective Covenants Agreement), any court of competent jurisdiction may issue a temporary and permanent injunction, without the necessity of the Company posting bond and, enjoining and restricting the breach, or threatened breach, of this Paragraph 8(a), including, but not limited to, any injunction restraining the breaching party from disclosing, using or otherwise misappropriating in whole or part, any Confidential Information. The Employee will pay all of the Company's costs and expenses, including reasonable attorneys' and accountants' fees, incurred in enforcing this Paragraph 7(a).

9.    Severability. If any provision of this Release shall be found by a court to be invalid or unenforceable, in whole or in part, then such provision shall be construed and/or modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Release, as the case may require, and this Release shall be construed and enforced to the maximum extent permitted by law, as if such provision had been originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be. The parties further agree to seek a lawful substitute for any provision found

4

to be unlawful; provided, that, if the parties are unable to agree upon a lawful substitute, the parties desire and request that a court or other authority called upon to decide the enforceability of this Release modify the Release so that, once modified, the Release will be enforceable to the maximum extent permitted by the law in existence at the time of the requested enforcement.

10.    Waiver. A waiver by the Company of a breach of any provision of this Release by the Employee shall not operate or be construed as a waiver or estoppel of any subsequent breach by the Employee. No waiver shall be valid unless in writing and signed by an authorized officer of the Company.

11.    Medicare and Social Security. Employee represents that Employee has never been enrolled in Medicare Part A or Part B, or applied for such benefits. Further, Employee represents that Employee has no claim for Social Security Disability benefits nor is Employee appealing or re-filing for Social Security Disability benefits. Employee further represents that Employee did not incur any physical injuries or receive medical care arising from or related to any of the claims released by this Agreement. Employee also warrants and represents that Medicare has not made any payments to or on behalf of Employee, nor has Employee made any claims to Medicare for payments of any medical bills, invoices, fees or costs, related to any of the claims released by this Agreement. Employee agrees to indemnify and hold the Company and the Released Parties harmless from any claims by Medicare with respect to the Settlement Payment and from any penalties levied by Medicare based upon any failure to report or late reporting of the settlement payment to Medicare caused by misrepresentations made by Employee in this Paragraph. Employee agrees to hold harmless the Company and the Released Parties for any loss of Medicare benefits or Social Security benefits (including Social Security Disability) that Employee may sustain as a result of this Agreement.

12.    Confidentiality of Agreement. The Employee agrees that Employee will keep the terms and amounts set forth in this Release completely confidential and will not disclose any information concerning this Release's terms and amounts to any person other than Employee’s attorney, accountant, tax advisor, or immediate family or as is necessary in response to lawful process of any judicial, adjudicative or administrative authority or otherwise allowed by law. The employee acknowledges and agrees that violation of this Paragraph prior to payment of any separation pay will render the Employee ineligible for any separation payment and violation of this Paragraph at any time may also result in irreparable harm and damages to the Company.

13. Employee’s Understanding of Agreement. The Employee represents and certifies that he has carefully read the entire Release and acknowledges that it is written in a manner calculated for Employee to understand. Employee further acknowledges that Employee fully understands all of the provisions and effects of this Release, has knowingly and voluntarily entered into this Release freely and without coercion.

14.    Time to Consider Agreement and Right to Consult Attorney. Employee acknowledges that: (i) the Company advised Employee of Employee’s right to consult with an attorney prior to executing this Release and further

5

advised Employee that Employee had forty-five (45) days within which to consider this Release, sign it and return it to the Company; (ii) the has seven (7) days from the date this Release is executed in which to revoke Employee’s acceptance of this Release and this Release will not be effective or enforceable until such seven (7) day period has expired and (iii) he received with this Release the attached Exhibit A containing information regarding employees in your department whose employment will end due to this group termination.

15.    Complete Agreement. This Release sets forth the entire agreement between the parties, and except as expressly set forth herein, fully supersedes any and all prior agreements or understandings between the parties pertaining to actual or potential claims arising from the Employee's employment with the Company or the separation of the Employee's employment with the Company.

16.    Future Cooperation. In connection with any and all claims, disputes, negotiations, investigations, lawsuits or administrative proceedings involving the Company, the Employee agrees to make himself/herself available, upon reasonable notice from the Company and without the necessity of subpoena, to provide information or documents, provide declarations or statements to the Company, meet with attorneys or other representatives of the Company, prepare for and give depositions or testimony, and/or otherwise cooperate in the investigation, defense or prosecution of any or all such matters. This is a material term of this Release.

17.    Amendment. This Release may not be altered, amended, or modified except in writing signed by both the Employee and the Company.

18.    Joint Participation. The parties hereto participated jointly in the negotiation and preparation of this Release, and each party has had the opportunity to obtain the advice of legal counsel and to review and comment upon the Release. Accordingly, it is agreed that no rule of construction shall apply against any party or in favor of any party. This Release shall be construed as if the parties jointly prepared this Release, and any uncertainty or ambiguity shall not be interpreted against one party and in favor of the other.

19.    Applicable Law. This Release shall be governed by, and construed in accordance with, the laws of the State of Illinois, and any court action commenced to enforce this Release shall have as its sole and exclusive venue the County of DuPage, Illinois.

20.    Execution of Release. This Release may be executed in several counterparts, each of which shall be considered an original, but which when taken together, shall constitute one Release.

6

PLEASE READ THIS AGREEMENT AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT. THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, INCLUDING THOSE UNDER THE FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT AS AMENDED, AND OTHER FEDERAL, STATE AND LOCAL LAWS PROHIBITING DISCRIMINATION IN EMPLOYMENT.

IN WITNESS WHEREOF, the Employee and the Company have voluntarily signed this Separation Agreement and General Release consisting of seven (7) pages on the date set forth above.

MB Financial Bank, N.A.	Employee
/s/Kathryn Drinan	/s/Larry Kallembach
Kathryn Drinan, PHR	Larry Kallembach
VP, Human Resources
10/28/2014	10/24/2014
Date	Date

7

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:  May 6, 2015

/s/ Mitchell Feiger

Mitchell Feiger

President and Chief Executive Officer 

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Jill E. York, 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:  May 6, 2015

/s/ Jill E. York

Jill E. York

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 March 31, 2015 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:	May 6, 2015	/s/Mitchell Feiger
		Mitchell Feiger
		President and Chief Executive Officer
Date:	May 6, 2015	/s/Jill E. York
		Jill E. York
		Vice President and Chief Financial Officer

XML

Operating Segments (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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

	Banking		Leasing		Mortgage Banking			Consolidated
Three months ended March 31, 2015
Net interest income	$	104,126	$	3,015	$	6,254		$	113,395
Provision for credit losses	4,974		—		—			4,974
Non-interest income	31,517		25,203		24,548			81,268
Non-interest expense (1)	95,334		13,656		30,930			139,920
Income tax expense	9,962		5,747		(51		)	15,658
Net income	$	25,373	$	8,815	$	(77	)	$	34,111
Total assets	$	12,246,659	$	937,903	$	1,143,748		$	14,328,310
Three months ended March 31, 2014
Net interest income	$	66,324	$	1,004	$	—		$	67,328
Provision for credit losses	1,150		—		—			1,150
Non-interest income	23,701		12,852		59			36,612
Non-interest expense	68,334		7,713		—			76,047
Income tax expense	4,483		2,291		—			6,774
Net income	$	16,058	$	3,852	$	59		$	19,969
Total assets	$	8,968,195	$	469,108	$	—		$	9,437,303

⁽¹⁾  Includes merger related expenses of $8.1 million and $680 thousand in the banking segment for the three months ended March 31, 2015 and 2014, respectively.

XML

Loans (Details 7) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward]
Transfer from/to performing	$ 221
Ending balance	3,153
Non-performing
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward]
Beginning balance	25,771
Additions	807
Charge-offs	(203)
Principal payments, net	(619)
Removals	(22)
Transfer from/to performing	0
Transfer from/to non-performing	(221)
Ending balance	25,513
Performing
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward]
Beginning balance	15,603
Additions	2,346
Charge-offs	0
Principal payments, net	(111)
Removals	(1,185)
Transfer from/to non-performing	0
Ending balance	$ 16,874

XML

Loans (Details) (USD $)	3 Months Ended
	Mar. 31, 2015 investmentrating	Dec. 31, 2014	Mar. 31, 2014
Loans
Total loans, excluding purchased credit impaired and covered loans	$ 8,693,814,000	$ 8,831,572,000
Purchased credit impaired and covered loans	227,514,000	251,645,000
Total loans	8,921,328,000	9,083,217,000	5,568,315,000
Number of highest rating categories by rating services company	1
Number of highest rating categories to be achieved for classification as investment grade companies	4
Percentage of collateral pledge of first mortgage loans as per agreement	133.00%
Percentage of collateral pledge of home equity loans as per agreement	250.00%
Loans pledged as collateral for long-term Federal Home Loan Bank advances	3,500,000,000	2,000,000,000
Loans required to be pledged as collateral for long-term Federal Home Loan Bank advances	1,300,000,000	1,300,000,000
Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	3,258,652,000	3,245,206,000
Total loans	3,343,216,000		1,280,806,000
Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	1,628,031,000	1,692,258,000
Total loans	1,628,031,000		1,472,621,000
Commercial real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	2,525,640,000	2,544,867,000
Total loans	2,600,648,000		1,719,015,000
Residential real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	505,558,000	503,287,000
Total loans	524,823,000		311,062,000
Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	184,105,000	247,068,000
Total loans	212,906,000		169,749,000
Indirect vehicle
Loans
Total loans, excluding purchased credit impaired and covered loans	273,105,000	268,840,000
Total loans	273,105,000		266,044,000
Home equity lines
Loans
Total loans, excluding purchased credit impaired and covered loans	241,078,000	251,909,000
Total loans	241,153,000		258,230,000
Other consumer
Loans
Total loans, excluding purchased credit impaired and covered loans	77,645,000	78,137,000
Total loans	$ 97,446,000		$ 90,788,000

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Fair Value Measurements (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	$ 1,589,424,000	$ 1,654,752,000
Mortgage servicing rights	219,254,000	235,402,000
Derivative financial instruments, assets	21,660,000	13,952,000
States and political subdivisions
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	403,628,000	410,854,000
Residential mortgage-backed securities
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	678,475,000	720,563,000
Corporate bonds
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	252,042,000	259,203,000
Recurring basis
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	219,254,000	235,402,000
Derivative financial instruments, assets	68,283,000	46,388,000
Recurring basis | States and political subdivisions
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	403,628,000	410,854,000
Recurring basis | Residential mortgage-backed securities
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	678,475,000	720,563,000
Recurring basis | Corporate bonds
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	252,042,000	259,203,000
Significant Unobservable Inputs (Level 3) | Recurring basis
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	935,000	973,000
Mortgage servicing rights		235,402,000
Derivative financial instruments, assets	11,214,000	5,074,000
Significant Unobservable Inputs (Level 3) | Recurring basis | States and political subdivisions
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	463,000	463,000
Credit assumption (as a percent)	45.00%
Significant Unobservable Inputs (Level 3) | Recurring basis | Residential mortgage-backed securities
Assets measured at fair value on a nonrecurring basis
Investment securities available for sale	472,000	510,000
Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	219,254,000
Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage derivative instruments
Assets measured at fair value on a nonrecurring basis
Derivative financial instruments, assets	11,214,000
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Residential mortgage-backed securities
Assets measured at fair value on a nonrecurring basis
Constant prepayment rates (as a percent)	1.00%
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Mortgage servicing rights
Assets measured at fair value on a nonrecurring basis
Constant prepayment rates (as a percent)	10.40%
Discount rate	9.25%
Maturity	299 months
Delinquencies	0.25%
Cost to services	60
Cost to services - deliquent	100
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Mortgage derivative instruments
Assets measured at fair value on a nonrecurring basis
Expected closing ratio	65.00%
Expected delivery price	0.9886%
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Residential mortgage-backed securities
Assets measured at fair value on a nonrecurring basis
Constant prepayment rates (as a percent)	3.00%
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Mortgage servicing rights
Assets measured at fair value on a nonrecurring basis
Constant prepayment rates (as a percent)	14.20%
Discount rate	12.00%
Maturity	356 months
Delinquencies	5.00%
Cost to services	160
Cost to services - deliquent	$ 1,000
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Mortgage derivative instruments
Assets measured at fair value on a nonrecurring basis
Expected closing ratio	95.00%
Expected delivery price	1.0893%

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Loans (Details 8) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
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
Extended Maturity and Amortization and Reduction of Interest Rate	$ 791
Delay in Payments or Reduction of Interest Rate	2,362
Total	3,153
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
Extended Maturity and Amortization and Reduction of Interest Rate	0
Delay in Payments or Reduction of Interest Rate	9
Total	9
Home equity lines
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
Extended Maturity and Amortization and Reduction of Interest Rate	791
Delay in Payments or Reduction of Interest Rate	2,353
Total	$ 3,144

XML

Derivative Financial Instruments (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Financial Assets, Gross Amount Recognized	$ 21,660	$ 13,952
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	21,660	13,952
Financial Liabilities, Gross Amount Recognized	44,979	37,927
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	44,979	37,927
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
Repurchase Agreements, Financial Liabilities, Gross Amount Recognized	240,478	219,824
Repurchase Agreements, Financial Liabilities, Gross Amount Offset	0	0
Repurchase Agreements, Financial Liabilities, Net Amount Recognized	240,478	219,824
Total Financial Assets, Gross Amount Recognized	21,660	13,952
Total Financial Assets, Gross Amount Offset	0	0
Total Financial Assets, Net Amount Recognized	21,660	13,952
Total Financial Liabilities, Gross Amount Recognized	285,457	257,751
Total Financial Liabilities, Gross Amount Offset	0	0
Total Financial Liabilities, Net Amount Recognized	285,457	257,751
Interest rate swaps, caps and floors
Derivative [Line Items]
Financial Assets, Gross Amount Recognized	17,959	10,727
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	17,959	10,727
Financial Liabilities, Gross Amount Recognized	34,795	29,916
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	34,795	29,916
Foreign currency forward contracts
Derivative [Line Items]
Financial Assets, Gross Amount Recognized	2,307	1,525
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	2,307	1,525
Financial Liabilities, Gross Amount Recognized	2,050	709
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	2,050	709
Mortgage related derivatives
Derivative [Line Items]
Financial Assets, Gross Amount Recognized	1,394	1,700
Financial Assets, Gross Amount Offset	0	0
Financial Assets, Net Amount Recognized	1,394	1,700
Financial Liabilities, Gross Amount Recognized	8,134	7,302
Financial Liabilities, Gross Amount Offset	0	0
Financial Liabilities, Net Amount Recognized	$ 8,134	$ 7,302

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Investment Securities (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015 Security_Position	Dec. 31, 2014 Security_Position
Available for Sale
Less Than 12 Months, Fair Value	$ 110,192	$ 405,448
Less Than 12 Months, Unrealized Losses	(928)	(2,756)
12 Months or More, Fair Value	55,191	42,606
12 Months or More, Unrealized Losses	(2,057)	(2,130)
Total Fair Value	165,383	448,054
Total Unrealized Losses	(2,985)	(4,886)
Total
Less Than 12 Months, Fair Value	146,811	434,234
Less Than 12 Months, Unrealized Losses	(1,065)	(2,886)
12 Months or More, Fair Value	61,431	56,844
12 Months or More, Unrealized Losses	(2,204)	(2,382)
Total Fair Value	208,242	491,078
Total Unrealized Losses	(3,269)	(5,268)
Number of security positions in the investment portfolio in an unrealized loss position	97	168
U.S. Government sponsored agencies and enterprises
Available for Sale
Less Than 12 Months, Fair Value		9,644
Less Than 12 Months, Unrealized Losses		(20)
12 Months or More, Fair Value		0
12 Months or More, Unrealized Losses		0
Total Fair Value		9,644
Total Unrealized Losses		(20)
States and political subdivisions
Available for Sale
Less Than 12 Months, Fair Value	4,761	7,784
Less Than 12 Months, Unrealized Losses	(10)	(21)
12 Months or More, Fair Value	2,253	3,558
12 Months or More, Unrealized Losses	(19)	(47)
Total Fair Value	7,014	11,342
Total Unrealized Losses	(29)	(68)
Held to maturity
Less Than 12 Months, Fair Value	36,619	28,786
Less Than 12 Months, Unrealized Losses	(137)	(130)
12 Months or More, Fair Value	6,240	14,238
12 Months or More, Unrealized Losses	(147)	(252)
Total Fair Value	42,859	43,024
Total Unrealized Losses	(284)	(382)
Residential mortgage-backed securities
Available for Sale
Less Than 12 Months, Fair Value	62,437	235,818
Less Than 12 Months, Unrealized Losses	(278)	(1,336)
12 Months or More, Fair Value	43,263	29,373
12 Months or More, Unrealized Losses	(534)	(491)
Total Fair Value	105,700	265,191
Total Unrealized Losses	(812)	(1,827)
Commercial mortgage-backed securities
Available for Sale
Less Than 12 Months, Fair Value	16,752	89,509
Less Than 12 Months, Unrealized Losses	(181)	(220)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total Fair Value	16,752	89,509
Total Unrealized Losses	(181)	(220)
Corporate bonds
Available for Sale
Less Than 12 Months, Fair Value	26,242	62,693
Less Than 12 Months, Unrealized Losses	(459)	(1,159)
12 Months or More, Fair Value	9,675	9,675
12 Months or More, Unrealized Losses	(1,504)	(1,592)
Total Fair Value	35,917	72,368
Total Unrealized Losses	$ (1,963)	$ (2,751)

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Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Summary of short-term borrowings

Short-term borrowings were as follows as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31, 2015				December 31, 2014
	Weighted Average Cost		Amount		Weighted Average Cost		Amount
Customer repurchase agreements	0.16	%	$	240,478	0.21	%	$	219,824
Federal Home Loan Bank advances	0.11		300,000		0.13		700,000
Federal funds purchased	0.33		74,753		0.14		11,591
	0.16	%	$	615,231	0.15	%	$	931,415

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Derivative Financial Instruments (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Financial Assets, Net Amount Recognized	$ 21,660	$ 13,952
Financial Assets, Financial Instruments	(16,755)	(10,201)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	4,905	3,751
Financial Liabilities, Net Amount Recognized	44,979	37,927
Financial Liabilities, Financial Instruments	(16,756)	(10,200)
Financial Liabilities, Collateral	(26,691)	(26,010)
Financial Liabilities, Net Amount	1,532	1,717
Repurchase Agreements, Financial Assets, Net Amount Recognized	0	0
Repurchase Agreements, Financial Assets, Financial Instruments	0	0
Repurchase Agreements, Financial Assets, Collateral	0	0
Repurchase Agreements, Financial Assets, Net Amount	0	0
Repurchase Agreements, Financial Liabilities, Net Amount Recognized	240,478	219,824
Repurchase Agreements, Financial Liabilities, Financial Instruments	0	0
Repurchase Agreements, Financial Liabilities, Financial Instruments	(240,478)	(219,824)
Repurchase Agreements, Financial Liabilities, Collateral	0	0
Total Financial Assets, Net Amount Recognized	21,660	13,952
Total Financial Assets, Financial Instruments	(16,755)	(10,201)
Total Financial Assets, Collateral	0	0
Total Financial Assets, Net Amount	4,905	3,751
Total Financial Liabilities, Net Amount Recognized	285,457	257,751
Total Financial Liabilities, Financial Instruments	(16,756)	(10,200)
Total Financial Liabilities, Collateral	(267,169)	(245,834)
Total Financial Liabilities, Net Amount	1,532	1,717
Counterparty A
Derivative [Line Items]
Financial Assets, Net Amount Recognized	19	13
Financial Assets, Financial Instruments	(19)	(13)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	0	0
Financial Liabilities, Net Amount Recognized	10,604	9,556
Financial Liabilities, Financial Instruments	(19)	(13)
Financial Liabilities, Collateral	(10,585)	(9,543)
Financial Liabilities, Net Amount	0	0
Counterparty B
Derivative [Line Items]
Financial Assets, Net Amount Recognized	27	145
Financial Assets, Financial Instruments	(27)	(145)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	0	0
Financial Liabilities, Net Amount Recognized	4,962	3,736
Financial Liabilities, Financial Instruments	(27)	(145)
Financial Liabilities, Collateral	(4,935)	(3,591)
Financial Liabilities, Net Amount	0	0
Counterparty C
Derivative [Line Items]
Financial Assets, Net Amount Recognized	9,792	6,123
Financial Assets, Financial Instruments	(9,792)	(6,123)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	0	0
Financial Liabilities, Net Amount Recognized	13,218	10,335
Financial Liabilities, Financial Instruments	(9,792)	(6,122)
Financial Liabilities, Collateral	(3,426)	(4,213)
Financial Liabilities, Net Amount	0	0
Other counterparties
Derivative [Line Items]
Financial Assets, Net Amount Recognized	11,822	7,671
Financial Assets, Financial Instruments	(6,917)	(3,920)
Financial Assets, Collateral	0	0
Financial Assets, Net Amount	4,905	3,751
Financial Liabilities, Net Amount Recognized	16,195	14,300
Financial Liabilities, Financial Instruments	(6,918)	(3,920)
Financial Liabilities, Collateral	(7,745)	(8,663)
Financial Liabilities, Net Amount	$ 1,532	$ 1,717

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Fair Value Measurements (Details 5) (Nonrecurring basis, USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financial Assets:
Impaired loans	$ 61,757	$ 61,717
Foreclosed assets	39,889	38,619
Significant Unobservable Inputs (Level 3)
Financial Assets:
Impaired loans	61,757	61,717
Foreclosed assets	$ 39,889	$ 38,619
Significant Unobservable Inputs (Level 3) | Maximum
Financial Assets:
Appraisal adjustment impaired loans (as a percent)	10.00%
Appraisal adjustment foreclosed assets (as a percent)	10.00%
Significant Unobservable Inputs (Level 3) | Minimum
Financial Assets:
Appraisal adjustment impaired loans (as a percent)	5.00%
Appraisal adjustment foreclosed assets (as a percent)	5.00%

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Loans (Details 10) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Changes in the accretable yield for purchased credit-impaired loans
Balance at beginning of period	$ 7,434	$ 2,337
Accretion	(1,930)	(550)
Other	863	574
Balance at end of period	$ 6,367	$ 2,361

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Stock Incentive Plans (Details 2) (USD $)	3 Months Ended	0 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2015	May 28, 2014	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock-based compensation
Grants beyond threshold limit count numerator	2
Grants beyond threshold limit count denominator	1
Omnibus Incentive Plan
Stock-based compensation
Additional number of share authorized		3,100,000
Total number of shares authorized		11,400,000
Percentage of shares authorized for issuance		10.00%
Vesting period		3 years
Shares available for future grant	4,979,712
Unrecognized compensation cost related to nonvested share-based compensation	31,600,000
Period for recognition	2 years 8 months 10 days
Employee stock options
Stock-based compensation
Award requisite service period	4 years
Expiration term of options	10 years
Intrinsic value of options exercised	81,000		550,000
Restricted shares
Stock-based compensation
Intrinsic value of restricted shares that vested	3,000,000		$ 1,000,000
Restricted shares | Minimum
Stock-based compensation
Vesting period	2 years
Restricted shares | Maximum
Stock-based compensation
Vesting period	4 years
Performance-based restricted stock units
Stock-based compensation
Restricted stock issued (in shares)	71,560			48,569	56,752	65,333
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%
Taylor Capital Group, Inc. | Omnibus Incentive Plan
Stock-based compensation
Total number of shares authorized	13,800,000
Increase in amount of shares authorized	2,400,000
Director | Restricted stock
Stock-based compensation
Vesting period	1 year
Maximum percentage of directors fees with option to be received in equity based incentive awards	100.00%
Director | Employee stock options
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

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Preferred Stock (Details) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended
	Aug. 18, 2014	Mar. 31, 2015	Dec. 31, 2014	Aug. 18, 2014
Equity [Abstract]
Stock conversion	1
Preferred stock, shares outstanding		4,000,000	4,000,000	4,000,000
Preferred stock, liquidation preference per share (in dollars per share)		$ 25	$ 25
Preferred stock, dividend rate, percentage		8.00%	8.00%

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Derivative Financial Instruments (Details) (USD $)	3 Months Ended			12 Months Ended
	Mar. 31, 2015		Mar. 31, 2014	Dec. 31, 2014
Derivative [Line Items]
Net amount payable under interest rate swap	$ 3,000			$ 1,100,000
Interest rate swap credit risk exposure	33,700,000
Asset Derivatives, Notional Amount	3,694,708,000			2,465,120,000
Asset Derivatives, Estimated Fair Value	68,283,000			46,388,000
Liability Derivatives, Notional Amount	2,654,246,000			2,964,961,000
Liability Derivatives, Estimated Fair Value	(47,162,000)			(40,499,000)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	12,851,000		81,000
Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	3,694,708,000	[1]		2,465,120,000	[1]
Asset Derivatives, Estimated Fair Value	68,283,000	[1]		46,388,000	[1]
Liability Derivatives, Notional Amount	2,654,059,000	[1]		2,964,764,000	[1]
Liability Derivatives, Estimated Fair Value	(47,148,000)	[1]		(40,484,000)	[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	12,850,000		81,000
Commercial loan interest rate swaps
Derivative [Line Items]
Liability Derivatives, Notional Amount	187,000
Interest rate swap contracts | Derivative instruments designated as hedges of fair value
Derivative [Line Items]
Asset Derivatives, Notional Amount	0	[1]		0	[1]
Asset Derivatives, Estimated Fair Value	0	[1]		0	[1]
Liability Derivatives, Notional Amount	187,000	[2]		197,000	[2]
Liability Derivatives, Estimated Fair Value	(14,000)	[2]		(15,000)	[2]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract]
Amounts of gain or (loss) recognized in income on derivatives	1,000		0
Interest rate swap contracts | Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	2,072,809,000	[1]		1,509,930,000	[1]
Asset Derivatives, Estimated Fair Value	50,633,000	[1]		37,039,000	[1]
Liability Derivatives, Notional Amount	1,268,604,000	[1]		2,001,787,000	[1]
Liability Derivatives, Estimated Fair Value	(34,942,000)	[1]		(30,761,000)	[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	11,125,000		9,000
Interest rate options contracts | Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	617,089,000	[1]		55,830,000	[1]
Asset Derivatives, Estimated Fair Value	982,000	[1]		283,000	[1]
Liability Derivatives, Notional Amount	67,089,000	[1]		55,830,000	[1]
Liability Derivatives, Estimated Fair Value	(260,000)	[1]		(283,000)	[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	723,000		0
Foreign exchange contracts | Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	49,017,000	[1]		27,402,000	[1]
Asset Derivatives, Estimated Fair Value	4,470,000	[1]		2,276,000	[1]
Liability Derivatives, Notional Amount	46,904,000	[1]		27,002,000	[1]
Liability Derivatives, Estimated Fair Value	(4,181,000)	[1]		(2,109,000)	[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	122,000		61,000
Spot foreign exchange contract | Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	210,000	[1]		512,000	[1]
Asset Derivatives, Estimated Fair Value	6,000	[1]		5,000	[1]
Liability Derivatives, Notional Amount	462,000	[1]		304,000	[1]
Liability Derivatives, Estimated Fair Value	(46,000)	[1]		(18,000)	[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	(28,000)		8,000
Mortgage related derivatives | Stand-alone derivative instruments
Derivative [Line Items]
Asset Derivatives, Notional Amount	955,583,000	[1]		871,446,000	[1]
Asset Derivatives, Estimated Fair Value	12,192,000	[1]		6,785,000	[1]
Liability Derivatives, Notional Amount	1,271,000,000	[1]		879,841,000	[1]
Liability Derivatives, Estimated Fair Value	(7,719,000)	[1]		(7,313,000)	[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	$ 908,000		$ 3,000

[1] These portfolio swaps are not designated as hedging instruments under ASC Topic 815.

[2] Hedged fixed-rate commercial real estate loans

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Fair Value Measurements (Details 3) (Mortgage servicing rights, USD $)	3 Months Ended
	Mar. 31, 2015
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	$ (9,979,000)
Impact on fair value of 20% adverse change	(19,144,000)
Impact on fair value of 10% adverse change	(7,330,000)
Impact on fair value of 20% adverse change	(14,193,000)
Impact on fair value of 10% adverse change	(1,310,000)
Impact on fair value of 20% adverse change	(1,977,000)
Impact on fair value of 10% adverse change	(3,142,000)
Impact on fair value of 20% adverse change	(6,284,000)
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	13.60%
Weighted average discount rate	9.42%
Weighted average delinquency rate	0.98%
Weighted average costs to service	$ 70

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Preferred Stock

3 Months Ended

Mar. 31, 2015

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 are 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 is $25 per share, at a rate of 8.00% per annum, payable quarterly. The Company Series A Preferred Stock is included in Tier 1 capital for regulatory capital purposes.

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Loans (Details 3) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Loans
Total loans, excluding purchased credit impaired and covered loans	$ 8,693,814,000	$ 8,831,572,000
Loans and Leases Receivable Net of Deferred Income of Nonperforming Substandard and Doubtful Loans	46,900,000	49,100,000
Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	3,258,652,000	3,245,206,000
Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	1,628,031,000	1,692,258,000
Healthcare
Loans
Total loans, excluding purchased credit impaired and covered loans	344,393,000	342,984,000
Industrial
Loans
Total loans, excluding purchased credit impaired and covered loans	336,976,000	338,033,000
Multifamily
Loans
Total loans, excluding purchased credit impaired and covered loans	376,517,000	420,398,000
Retail
Loans
Total loans, excluding purchased credit impaired and covered loans	440,821,000	438,176,000
Office
Loans
Total loans, excluding purchased credit impaired and covered loans	246,572,000	246,293,000
Other
Loans
Total loans, excluding purchased credit impaired and covered loans	780,361,000	758,983,000
Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	184,105,000	247,068,000
Pass
Loans
Total loans, excluding purchased credit impaired and covered loans	7,231,336,000	7,390,916,000
Pass | Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	3,029,893,000	3,036,069,000
Pass | Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	1,614,968,000	1,680,736,000
Pass | Healthcare
Loans
Total loans, excluding purchased credit impaired and covered loans	340,036,000	338,622,000
Pass | Industrial
Loans
Total loans, excluding purchased credit impaired and covered loans	314,666,000	314,225,000
Pass | Multifamily
Loans
Total loans, excluding purchased credit impaired and covered loans	368,675,000	412,824,000
Pass | Retail
Loans
Total loans, excluding purchased credit impaired and covered loans	426,760,000	423,842,000
Pass | Office
Loans
Total loans, excluding purchased credit impaired and covered loans	225,451,000	229,947,000
Pass | Other
Loans
Total loans, excluding purchased credit impaired and covered loans	727,643,000	708,447,000
Pass | Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	183,244,000	246,204,000
Special Mention
Loans
Total loans, excluding purchased credit impaired and covered loans	210,470,000	233,740,000
Special Mention | Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	155,032,000	178,984,000
Special Mention | Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	935,000	6,853,000
Special Mention | Healthcare
Loans
Total loans, excluding purchased credit impaired and covered loans	4,357,000	4,362,000
Special Mention | Industrial
Loans
Total loans, excluding purchased credit impaired and covered loans	13,200,000	8,817,000
Special Mention | Multifamily
Loans
Total loans, excluding purchased credit impaired and covered loans	1,287,000	920,000
Special Mention | Retail
Loans
Total loans, excluding purchased credit impaired and covered loans	4,165,000	2,740,000
Special Mention | Office
Loans
Total loans, excluding purchased credit impaired and covered loans	13,544,000	8,524,000
Special Mention | Other
Loans
Total loans, excluding purchased credit impaired and covered loans	17,426,000	22,013,000
Special Mention | Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	524,000	527,000
Substandard
Loans
Total loans, excluding purchased credit impaired and covered loans	154,622,000	104,743,000
Substandard | Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	73,727,000	30,153,000
Substandard | Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	12,128,000	4,669,000
Substandard | Healthcare
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Substandard | Industrial
Loans
Total loans, excluding purchased credit impaired and covered loans	9,110,000	14,991,000
Substandard | Multifamily
Loans
Total loans, excluding purchased credit impaired and covered loans	6,555,000	6,654,000
Substandard | Retail
Loans
Total loans, excluding purchased credit impaired and covered loans	9,896,000	11,594,000
Substandard | Office
Loans
Total loans, excluding purchased credit impaired and covered loans	7,577,000	7,822,000
Substandard | Other
Loans
Total loans, excluding purchased credit impaired and covered loans	35,292,000	28,523,000
Substandard | Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	337,000	337,000
Doubtful
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Healthcare
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Industrial
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Multifamily
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Retail
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Office
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Other
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Doubtful | Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	0	0
Risk Rated Category
Loans
Total loans, excluding purchased credit impaired and covered loans	7,596,428,000	7,729,399,000
Risk Rated Category | Commercial loans
Loans
Total loans, excluding purchased credit impaired and covered loans	3,258,652,000	3,245,206,000
Risk Rated Category | Commercial loans collateralized by assignment of lease payments
Loans
Total loans, excluding purchased credit impaired and covered loans	1,628,031,000	1,692,258,000
Risk Rated Category | Healthcare
Loans
Total loans, excluding purchased credit impaired and covered loans	344,393,000	342,984,000
Risk Rated Category | Industrial
Loans
Total loans, excluding purchased credit impaired and covered loans	336,976,000	338,033,000
Risk Rated Category | Multifamily
Loans
Total loans, excluding purchased credit impaired and covered loans	376,517,000	420,398,000
Risk Rated Category | Retail
Loans
Total loans, excluding purchased credit impaired and covered loans	440,821,000	438,176,000
Risk Rated Category | Office
Loans
Total loans, excluding purchased credit impaired and covered loans	246,572,000	246,293,000
Risk Rated Category | Other
Loans
Total loans, excluding purchased credit impaired and covered loans	780,361,000	758,983,000
Risk Rated Category | Construction real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	$ 184,105,000	$ 247,068,000

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Business Combinations (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended
	Aug. 18, 2014	Aug. 15, 2014	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Goodwill			$ 711,521	$ 711,521
LIABILITIES
Series A preferred stock at $28.82 per share at August 15, 2014			115,280	115,280
Consideration excluding Series A preferred stock:
Preferred stock, stated value per share			$ 0.01	$ 0.01
Taylor Capital Group, Inc.
ASSETS
Cash and cash equivalents	154,684
Investment securities available for sale	826,691
Investment securities held to maturity	22,599
Non-marketable securities - FRB and FHLB Stock	50,620
Loans held for sale	670,671
Loans	3,532,211
Leases investments	11,885
Premises and equipment	19,701
Goodwill	288,152
Core deposit intangible	20,079
Mortgage servicing rights	224,453
Other real estate owned	4,720
Other assets	130,478
Total assets	5,956,944
LIABILITIES
Deposits	3,953,213
Short-term borrowings	1,035,800
Junior subordinated notes issued to capital trusts	80,843
Accrued expenses and other liabilities	123,028
Total liabilities	5,192,884
Total identifiable net assets less Series A preferred stock	648,780
Consideration excluding Series A preferred stock:
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued)	519,270
Cash paid	129,510
Total fair value of consideration, excluding Series A preferred stock	648,780
Taylor Capital Group, Inc. | Series A Preferred Stock
LIABILITIES
Series A preferred stock at $28.82 per share at August 15, 2014	$ 115,280
Consideration excluding Series A preferred stock:
Preferred stock, stated value per share		$ 28.82
Common Stock | Taylor Capital Group, Inc.
Consideration excluding Series A preferred stock:
Share price		$ 26.49
Number of shares issued	19,600,000	19,602,482

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Stock Incentive Plans (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Impact of the share-based payment plans in the financial statements
Total cost of share-based payment plans during the period	$ 3,605	$ 2,012
Amount of related income tax benefit recognized in income	1,412	790
Restricted shares
Changes in restricted shares
Number of Shares and Units, Shares Outstanding, Beginning balance	801,085
Number of Shares and Units, Granted	490,504
Number of Shares and Units, Vested	(94,740)
Number of Shares and Units, Forfeited	(3,539)
Number of Shares and Units, Shares Outstanding, Ending balance	1,193,310
Weighted Average Grant Date Fair Value, restricted shares
Weighted Average Grant Date Fair Value, Shares Outstanding, Beginning balance (in dollars per share)	$ 26.99
Weighted Average Grant Date Fair Value, Granted (in dollars per share)	$ 31.65
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	$ 27.74
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share)	$ 27.08
Weighted Average Grant Date Fair Value, Shares Outstanding, Ending balance (in dollars per share)	$ 28.85
Employee stock options
Options outstanding activity
Number of Options, Outstanding, Beginning balance	2,250,714
Number of Options, Granted	296,413
Number of Options, Exercised	(7,284)
Number of Options, Expired or Cancelled	(3,933)
Number of Options, Forfeited	(2,928)
Number of Options, Outstanding, Ending balance	2,532,982		2,250,714
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding, Beginning balance (in dollars per share)	$ 27.94
Weighted Average Exercise Price, Granted (in dollars per share)	$ 31.26
Weighted Average Exercise Price, Exercised (in dollars per share)	$ 19.85
Weighted Average Exercise Price, Expired or Cancelled (in dollars per share)	$ 30.34
Weighted Average Exercise Price, Forfeited (in dollars per share)	$ 25.00
Weighted Average Exercise Price, Outstanding, Ending balance (in dollars per share)	$ 28.35		$ 27.94
Weighted Average Remaining Contractual Term (In Years)
Weighted Average Remaining Contractual Term, Beginning balance (in years)	4 years 9 months 22 days		4 years 4 months 20 days
Weighted Average Remaining Contractual Term, Ending balance (in years)	4 years 9 months 22 days		4 years 4 months 20 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Options Outstanding	11,342
Options Exercisable, Number (in shares)	1,729,575
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 29.07
Options Exercisable, Weighted Average Remaining Contractual Term (in years)	3 years 1 month 15 days
Options Exercisable, Aggregate Intrinsic Value	$ 7,723
Fair value assumptions
Risk-free interest rate	1.71%
Expected volatility of Company’s stock	30.43%
Expected dividend yield	1.79%
Expected life of options	5 years 11 months 10 days
Weighted average fair value per option of options granted during the year	$ 8.08

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Stock Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2015

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

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

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
	March 31,
	2015		2014
Total cost of share-based payment plans during the period	$	3,605	$	2,012
Amount of related income tax benefit recognized in income	1,412		$	790

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock options outstanding for the three months endedMarch 31, 2015:

	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, 2014	2,250,714		$	27.94	4.39
Granted	296,413		31.26
Exercised	(7,284	)	19.85
Expired or cancelled	(3,933	)	30.34
Forfeited	(2,928	)	25.00
Options outstanding as of March 31, 2015	2,532,982		$	28.35	4.81	$	11,342
Options exercisable as of March 31, 2015	1,729,575		$	29.07	3.12	$	7,723

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

 The following assumptions were used for options granted during the three months endedMarch 31, 2015:

	March 31, 2015
Risk-free interest rate	1.71		%
Expected volatility of Company’s stock	30.43		%
Expected dividend yield	1.79		%
Expected life of options	5.9 years
Weighted average fair value per option of options granted during the year	$	8.08

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The following is a summary of changes in restricted shares and units for the three months endedMarch 31, 2015:

	Number of Shares and Units		Weighted Average Grant Date Fair Value
Shares Outstanding at December 31, 2014	801,085		$	26.99
Granted	490,504		31.65
Vested	(94,740	)	27.74
Forfeited	(3,539	)	27.08
Shares Outstanding at March 31, 2015	1,193,310		$	28.85

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Loans (Details 5) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015 loan	Dec. 31, 2014 loan
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	$ 107,812,000	$ 113,336,000
Recorded Investment	98,797,000	101,532,000
Partial Charge-Offs	9,015,000	11,804,000
Allowance for Loan Losses Allocated	11,065,000	10,482,000
Impaired Financing Receivable, Average Recorded Investment	102,661,000	126,665,000
Interest Income Recognized	58,000	407,000
Restructured loans	3,153,000
Financing Receivable Modifications Minimum Period of Sustained Repayment Required to Return Note to Accrual Status	6 months
Financing Receivable Modifications Restructured Loans Representing A And B Structures	1,000,000	1,000,000
Financing Receivable Modifications Restructured Loans Number of A and B Structures	1	1
Indirect vehicle
Loans individually evaluated for impairment by class of loans
Restructured loans	9,000
Home equity lines
Loans individually evaluated for impairment by class of loans
Restructured loans	3,144,000
Impaired Financing Receivable With No Allowance | Commercial loans
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	9,686,000	9,752,000
Recorded Investment	8,925,000	8,992,000
Partial Charge-Offs	761,000	760,000
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	10,640,000	10,324,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Commercial loans collateralized by assignment of lease payments
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	1,508,000	2,316,000
Recorded Investment	1,508,000	2,316,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	1,626,000	2,569,000
Interest Income Recognized	29,000	121,000
Impaired Financing Receivable With No Allowance | Healthcare
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	0
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Industrial
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	5,846,000	9,115,000
Recorded Investment	4,670,000	5,858,000
Partial Charge-Offs	1,176,000	3,257,000
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	4,962,000	7,870,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Multifamily
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	1,698,000	1,733,000
Recorded Investment	1,698,000	1,733,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	1,792,000	1,928,000
Interest Income Recognized	7,000	52,000
Impaired Financing Receivable With No Allowance | Retail
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	2,019,000	2,025,000
Recorded Investment	807,000	813,000
Partial Charge-Offs	1,212,000	1,212,000
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	825,000	3,465,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Office
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	1,608,000	0
Recorded Investment	1,031,000	0
Partial Charge-Offs	577,000	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	1,609,000	1,127,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Other
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	1,490,000	1,479,000
Recorded Investment	1,465,000	1,465,000
Partial Charge-Offs	25,000	14,000
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	1,527,000	5,249,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Residential real estate
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	970,000	1,941,000
Recorded Investment	970,000	1,941,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	2,740,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Construction real estate
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	34,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Indirect vehicle
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment		0
Interest Income Recognized		0
Impaired Financing Receivable With No Allowance | Home equity lines
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	1,025,000	577,000
Recorded Investment	1,025,000	577,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	762,000
Interest Income Recognized	0	0
Impaired Financing Receivable With No Allowance | Other consumer
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	0
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Commercial loans
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	6,464,000	7,987,000
Recorded Investment	6,464,000	7,987,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	2,051,000	2,395,000
Impaired Financing Receivable, Average Recorded Investment	6,760,000	14,227,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Commercial loans collateralized by assignment of lease payments
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	2,145,000	715,000
Recorded Investment	2,145,000	715,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	1,534,000	105,000
Impaired Financing Receivable, Average Recorded Investment	1,331,000	1,515,000
Interest Income Recognized	14,000	91,000
Impaired Financing Receivable With Allowance | Healthcare
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	0
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Industrial
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	146,000	517,000
Recorded Investment	146,000	513,000
Partial Charge-Offs	0	4,000
Allowance for Loan Losses Allocated	37,000	130,000
Impaired Financing Receivable, Average Recorded Investment	49,000	4,982,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Multifamily
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	5,723,000	5,680,000
Recorded Investment	4,749,000	4,709,000
Partial Charge-Offs	974,000	971,000
Allowance for Loan Losses Allocated	664,000	996,000
Impaired Financing Receivable, Average Recorded Investment	5,926,000	6,354,000
Interest Income Recognized	8,000	131,000
Impaired Financing Receivable With Allowance | Retail
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	8,889,000	9,264,000
Recorded Investment	7,493,000	7,897,000
Partial Charge-Offs	1,396,000	1,367,000
Allowance for Loan Losses Allocated	626,000	720,000
Impaired Financing Receivable, Average Recorded Investment	7,710,000	8,547,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Office
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	2,369,000	4,528,000
Recorded Investment	1,866,000	2,986,000
Partial Charge-Offs	503,000	1,542,000
Allowance for Loan Losses Allocated	484,000	545,000
Impaired Financing Receivable, Average Recorded Investment	2,274,000	2,833,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Other
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	12,247,000	12,612,000
Recorded Investment	12,227,000	12,527,000
Partial Charge-Offs	20,000	85,000
Allowance for Loan Losses Allocated	100,000	136,000
Impaired Financing Receivable, Average Recorded Investment	13,207,000	11,022,000
Interest Income Recognized	0	12,000
Impaired Financing Receivable With Allowance | Residential real estate
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	14,153,000	14,234,000
Recorded Investment	14,153,000	14,234,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	3,045,000	3,126,000
Impaired Financing Receivable, Average Recorded Investment	14,407,000	14,632,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Construction real estate
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	2,708,000	2,707,000
Recorded Investment	337,000	337,000
Partial Charge-Offs	2,371,000	2,370,000
Allowance for Loan Losses Allocated	162,000	162,000
Impaired Financing Receivable, Average Recorded Investment	431,000	455,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Indirect vehicle
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	164,000	227,000
Recorded Investment	164,000	227,000
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	14,000	14,000
Impaired Financing Receivable, Average Recorded Investment	372,000	358,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Home equity lines
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	26,954,000	25,927,000
Recorded Investment	26,954,000	25,705,000
Partial Charge-Offs	0	222,000
Allowance for Loan Losses Allocated	2,348,000	2,153,000
Impaired Financing Receivable, Average Recorded Investment	27,213,000	25,672,000
Interest Income Recognized	0	0
Impaired Financing Receivable With Allowance | Other consumer
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Partial Charge-Offs	0	0
Allowance for Loan Losses Allocated	0	0
Impaired Financing Receivable, Average Recorded Investment	0	0
Interest Income Recognized	0	0
Performing
Loans individually evaluated for impairment by class of loans
Restructured loans	16,900,000	15,600,000
Non-performing
Loans individually evaluated for impairment by class of loans
Restructured loans	$ 25,500,000	$ 25,800,000

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Commitments and Contingencies (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
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	$ 3,800,000
Dollar amount of letters of credit outstanding	138,000,000	134,200,000
Letters of credit issued or renewed	32,200,000
Capital expenditure commitments outstanding	2,600,000
Home equity lines
Commitments and contingencies
Dollar amount of line of credit outstanding	209,466,000	221,102,000
Other commitments
Commitments and contingencies
Dollar amount of line of credit outstanding	2,651,028,000	2,643,220,000
Standby
Commitments and contingencies
Dollar amount of line of credit outstanding	132,056,000	131,810,000
Commercial
Commitments and contingencies
Dollar amount of line of credit outstanding	$ 5,992,000	$ 2,401,000

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Goodwill and Intangibles (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 4,445
2016	5,157
2017	4,637
2018	4,221
2019	2,743
Thereafter	15,285
Total estimated future amortization expense	$ 36,488

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Investment Securities (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Amortized cost and fair value of investment securities by contractual maturity
Realized gains	$ 759,000	$ 318,000
Realized losses	(1,219,000)	(1,000)
Net (losses) gains	(460,000)	317,000
Amortized Cost, Available for sale
Due in one year or less	17,722,000
Due after one year through five years	291,975,000
Due after five years through ten years	42,645,000
Due after ten years	344,316,000
Amortized Cost	1,548,972,000		1,624,268,000
Fair Value, Available for sale
Due in one year or less	17,770,000
Due after one year through five years	294,881,000
Due after five years through ten years	44,133,000
Due after ten years	364,956,000
Fair Value	1,589,424,000		1,654,752,000
Amortized Cost, Held to maturity
Due in one year or less	52,102,000
Due in after one year through five years	222,670,000
Due after five years through ten years	99,975,000
Due after ten years	390,184,000
Investment securities held to maturity	1,000,859,000		993,380,000
Fair value, Held to maturity
Due in one year or less	52,249,000
Due in after one year through five years	224,797,000
Due after five years through ten years	104,546,000
Due after ten years	415,191,000
Investment securities held to maturity	1,045,205,000		1,035,061,000
Total Available for Sale and Held to Maturity Investment Securities
Amortized Cost	2,549,831,000		2,617,648,000
Fair Value	2,634,629,000		2,689,813,000
Pledged financial instruments, not separately reported, securities	1,500,000,000		1,500,000,000
Pledged financial instruments, not separately reported, securities required to be pledged	908,600,000		980,400,000
Investment securities pledged as collateral for long-term Federal Home Loan Bank advances	200,900,000		226,900,000
Equity securities
Amortized Cost, Available for sale
Amortized Cost	10,587,000		10,531,000
Fair Value, Available for sale
Fair Value	10,751,000		10,597,000
Residential and commercial mortgage-backed securities
Amortized Cost, Available for sale
Amortized Cost	841,727,000
Fair Value, Available for sale
Fair Value	856,933,000
Residential mortgage-backed securities
Amortized Cost, Available for sale
Amortized Cost	666,904,000		713,413,000
Fair Value, Available for sale
Fair Value	678,475,000		720,563,000
Amortized Cost, Held to maturity
Investment securities held to maturity	235,928,000		240,822,000
Fair value, Held to maturity
Investment securities held to maturity	$ 248,422,000		$ 252,796,000

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [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 position, results of operations and cash flows for the interim periods have been made. The results of operations for the three months endedMarch 31, 2015 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, 2014.

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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Deposits (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Deposits [Abstract]
Demand deposit accounts, noninterest bearing	$ 4,290,499,000	$ 4,118,256,000
NOW and money market accounts	4,002,818,000	3,913,765,000
Savings accounts	969,560,000	940,345,000
Certificates of deposit, $250,000 or more	716,701,000	838,928,000
Other certificates of deposit	1,039,923,000	1,179,648,000
Total deposits	11,019,501,000	10,990,942,000
Brokered deposits	$ 395,300,000	$ 485,300,000

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Business Combinations (Details 3) (Taylor Capital Group, Inc., USD $) In Thousands, unless otherwise specified	Aug. 18, 2014
Business Combination, Acquired Receivables [Abstract]
Fair value of acquired loans	$ 3,532,211
Purchased Credit Impaired Loans Receivable
Business Combination, Acquired Receivables [Abstract]
Contractually required principal and interest payments	244,650
Nonaccretable difference	(34,219)
Cash flows expected to be collected	210,431
Accretable difference	(5,626)
Fair value of acquired loans	204,805
Purchased Non-Credit Impaired Loans Receivable
Business Combination, Acquired Receivables [Abstract]
Fair value of acquired loans	3,327,406
Contractually required principal and interest payments	3,707,463
Contractually required interest payments not expected to be collected due to estimated prepayments	(302,329)
Cash flows expected to be collected	3,405,134
Accretable difference	$ (77,728)

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Summary investment holdings

Amortized cost and fair value of investment securities were as follows as of the dates indicated (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015
Available for Sale
U.S. Government sponsored agencies and enterprises	$	64,411	$	1,659	$	—		$	66,070
States and political subdivisions	381,704		21,953		(29		)	403,628
Residential mortgage-backed securities	666,904		12,383		(812		)	678,475
Commercial mortgage-backed securities	174,823		3,816		(181		)	178,458
Corporate bonds	250,543		3,462		(1,963		)	252,042
Equity securities	10,587		164		—			10,751
Total Available for Sale	1,548,972		43,437		(2,985		)	1,589,424
Held to Maturity
States and political subdivisions	764,931		32,136		(284		)	796,783
Residential mortgage-backed securities	235,928		12,494		—			248,422
Total Held to Maturity	1,000,859		44,630		(284		)	1,045,205
Total	$	2,549,831	$	88,067	$	(3,269	)	$	2,634,629
December 31, 2014
Available for Sale
U.S. Government sponsored agencies and enterprises	$	64,612	$	1,281	$	(20	)	$	65,873
States and political subdivisions	390,076		20,846		(68		)	410,854
Residential mortgage-backed securities	713,413		8,977		(1,827		)	720,563
Commercial mortgage-backed securities	186,110		1,772		(220		)	187,662
Corporate bonds	259,526		2,428		(2,751		)	259,203
Equity securities	10,531		66		—			10,597
Total Available for Sale	1,624,268		35,370		(4,886		)	1,654,752
Held to Maturity
States and political subdivisions	752,558		30,089		(382		)	782,265
Residential mortgage-backed securities	240,822		11,974		—			252,796
Total Held to Maturity	993,380		42,063		(382		)	1,035,061
Total	$	2,617,648	$	77,433	$	(5,268	)	$	2,689,813

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 March 31, 2015 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
States and political subdivisions	$	4,761	$	(10	)	$	2,253	$	(19	)	$	7,014	$	(29	)
Residential mortgage-backed securities	62,437		(278		)	43,263		(534		)	105,700		(812		)
Commercial mortgage-backed securities	16,752		(181		)	—		—			16,752		(181		)
Corporate bonds	26,242		(459		)	9,675		(1,504		)	35,917		(1,963		)
Total Available for Sale	110,192		(928		)	55,191		(2,057		)	165,383		(2,985		)
Held to Maturity
States and political subdivisions	36,619		(137		)	6,240		(147		)	42,859		(284		)
Total	$	146,811	$	(1,065	)	$	61,431	$	(2,204	)	$	208,242	$	(3,269	)

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, 2014 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	$	9,644	$	(20	)	$	—	$	—		$	9,644	$	(20	)
States and political subdivisions	7,784		(21		)	3,558		(47		)	11,342		(68		)
Residential mortgage-backed securities	235,818		(1,336		)	29,373		(491		)	265,191		(1,827		)
Commercial mortgage-backed securities	89,509		(220		)	—		—			89,509		(220		)
Corporate bonds	62,693		(1,159		)	9,675		(1,592		)	72,368		(2,751		)
Total Available for Sale	405,448		(2,756		)	42,606		(2,130		)	448,054		(4,886		)
Held to Maturity
States and political subdivisions	28,786		(130		)	14,238		(252		)	43,024		(382		)
Total	$	434,234	$	(2,886	)	$	56,844	$	(2,382	)	$	491,078	$	(5,268	)

Summary of realized gains on the sale of investment securities available for sale

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

	Three Months Ended
	March 31,
	2015			2014
Realized gains	$	759		$	318
Realized losses	(1,219		)	(1		)
Net (losses) gains	$	(460	)	$	317

Schedule of remaining contractual maturities of securities included in the securities portfolio

The amortized cost and fair value of investment securities as of March 31, 2015 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	$	17,722	$	17,770
Due after one year through five years	291,975		294,881
Due after five years through ten years	42,645		44,133
Due after ten years	344,316		364,956
Equity securities	10,587		10,751
Residential and commercial mortgage-backed securities	841,727		856,933
	1,548,972		1,589,424
Held to maturity:
Due in one year or less	52,102		52,249
Due after one year through five years	222,670		224,797
Due after five years through ten years	99,975		104,546
Due after ten years	390,184		415,191
Residential mortgage-backed securities	235,928		248,422
	1,000,859		1,045,205
Total	$	2,549,831	$	2,634,629

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Business Combinations (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

Estimated fair values of the assets acquired and liabilities assumed in the Taylor Capital transaction, as of the closing date of the transaction were as follows (in thousands):

	August 18,
	2014
ASSETS
Cash and cash equivalents	$	154,684
Investment securities available for sale	826,691
Investment securities held to maturity	22,599
Non-marketable securities - FRB and FHLB Stock	50,620
Loans held for sale	670,671
Loans	3,532,211
Leases investments	11,885
Premises and equipment	19,701
Goodwill	288,152
Core deposit intangible	20,079
Mortgage servicing rights	224,453
Other real estate owned	4,720
Other assets	130,478
Total assets	$	5,956,944
LIABILITIES
Deposits	$	3,953,213
Short-term borrowings	1,035,800
Junior subordinated notes issued to capital trusts	80,843
Accrued expenses and other liabilities	123,028
Total liabilities	$	5,192,884
Series A preferred stock at $28.82 per share at August 15, 2014	$	115,280
Total identifiable net assets less Series A preferred stock	$	648,780
Consideration excluding Series A preferred stock:
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued)	$	519,270
Cash paid	129,510
Total fair value of consideration, excluding Series A preferred stock	$	648,780

The following table presents the acquired loans as of the acquisition date (in thousands):

	PCI Loans			Non-PCI Loans
Contractually required principal and interest payments	$	244,650		$	3,707,463
Contractually required interest payments not expected to be collected due to estimated prepayments	—			(302,329		)
Nonaccretable difference	(34,219		)	—
Cash flows expected to be collected	210,431			3,405,134
Accretable difference	(5,626		)	(77,728		)
Fair value of acquired loans	$	204,805		$	3,327,406

Business Acquisition, Pro Forma Information

The following table provides the unaudited pro forma information for the results of operations for the three months ended March 31, 2014, as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of operations including the impact of certain purchase accounting adjustments including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. Net income in the table below includes merger related expenses.

	Pro Forma
	Three Months Ended
	March 31,
	2014
(in thousands)
Total revenues (net interest income plus non-interest income)	$	185,028
Net income	34,752

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Loans (Details 9) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014
Allowance for credit losses [Roll Forward]
Beginning Balance	$ 110,026,000
Ending Balance	113,412,000
Ending allowance balance attributable to loans:
Acquired and accounted for under ASC 310-30	1,074,000	[1]	2,208,000	[1]
Unfunded Commitments
Allowance for unfunded credit commitments, beginning balance	4,031,000		1,716,000
Allowance for unfunded commitments, Provision	(254,000)		(73,000)
Individually evaluated for impairment for unfunded commitments	1,333,000		665,000
Unfunded commitments collectively evaluated for impairment	2,444,000		978,000
Allowance for unfunded credit commitments, ending balance	3,777,000		1,643,000
Allowance for credit losses
Allowance for credit losses, beginning balance	114,057,000		113,462,000
Allowance for loan losses and unfunded commitments charge offs	4,927,000		9,601,000
Allowance for loan losses and unfunded commitments recoveries	3,085,000		3,384,000
Allowance for loan losses and unfunded commitments provision	4,974,000		1,150,000
Allowance for credit losses, individually evaluated for impairment	12,398,000		15,841,000
Allowance for credit losses, collectively evaluated for impairment	103,717,000		90,346,000
Acquired and accounted for under ASC 310-30	1,074,000	[1]	2,208,000	[1]
Allowance for credit losses, ending balance	117,189,000		108,395,000
Loans:
Individually evaluated for impairment	98,797,000		147,312,000
Collectively evaluated for impairment	8,595,017,000		5,226,562,000
Acquired and accounted for under ASC 310-30	227,514,000	[1]	194,441,000	[1]
Total loans	8,921,328,000		5,568,315,000		9,083,217,000
Commercial loans
Allowance for credit losses [Roll Forward]
Beginning Balance	29,571,000		23,461,000
Charge-offs	569,000		90,000
Recoveries	242,000		1,628,000
Provision	3,583,000		(1,061,000)
Ending Balance	32,827,000		23,938,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	2,051,000		6,160,000
Collectively evaluated for impairment	30,320,000		17,312,000
Acquired and accounted for under ASC 310-30	456,000	[1]	466,000
Allowance for credit losses
Acquired and accounted for under ASC 310-30	456,000	[1]	466,000
Loans:
Individually evaluated for impairment	15,389,000		41,191,000
Collectively evaluated for impairment	3,243,263,000		1,208,639,000
Acquired and accounted for under ASC 310-30	84,564,000	[1]	30,976,000	[1]
Total loans	3,343,216,000		1,280,806,000
Commercial loans collateralized by assignment of lease payments
Allowance for credit losses [Roll Forward]
Beginning Balance	9,962,000		9,159,000
Charge-offs	0
Recoveries	749,000
Provision	(886,000)		(101,000)
Ending Balance	9,825,000		9,058,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,534,000		174,000
Collectively evaluated for impairment	8,291,000		8,884,000
Loans:
Individually evaluated for impairment	3,653,000		4,235,000
Collectively evaluated for impairment	1,624,378,000		1,468,386,000
Total loans	1,628,031,000		1,472,621,000
Commercial real estate
Allowance for credit losses [Roll Forward]
Beginning Balance	41,826,000		51,628,000
Charge-offs	2,034,000		7,156,000
Recoveries	1,375,000		485,000
Provision	791,000		2,583,000
Ending Balance	41,958,000		47,540,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,911,000		4,151,000
Collectively evaluated for impairment	39,435,000		41,707,000
Acquired and accounted for under ASC 310-30	612,000	[1]	1,682,000	[1]
Allowance for credit losses
Acquired and accounted for under ASC 310-30	612,000	[1]	1,682,000	[1]
Loans:
Individually evaluated for impairment	36,152,000		57,960,000
Collectively evaluated for impairment	2,489,488,000		1,565,549,000
Acquired and accounted for under ASC 310-30	75,008,000	[1]	95,506,000	[1]
Total loans	2,600,648,000		1,719,015,000
Allowance for loan losses and unfunded commitments acquired with deteriorated credit quality	1,100,000				1,300,000
Residential real estate
Allowance for credit losses [Roll Forward]
Beginning Balance	6,646,000		8,872,000
Charge-offs	579,000		265,000
Recoveries	72,000		519,000
Provision	621,000		(1,039,000)
Ending Balance	6,760,000		8,087,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	3,045,000		3,076,000
Collectively evaluated for impairment	3,715,000		5,011,000
Acquired and accounted for under ASC 310-30			0	[1]
Allowance for credit losses
Acquired and accounted for under ASC 310-30			0	[1]
Loans:
Individually evaluated for impairment	15,123,000		18,151,000
Collectively evaluated for impairment	490,435,000		287,790,000
Acquired and accounted for under ASC 310-30	19,265,000	[1]	5,121,000	[1]
Total loans	524,823,000		311,062,000
Construction real estate
Allowance for credit losses [Roll Forward]
Beginning Balance	8,918,000		6,856,000
Charge-offs	3,000		56,000
Recoveries	2,000		99,000
Provision	556,000		(415,000)
Ending Balance	9,473,000		6,484,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	162,000		195,000
Collectively evaluated for impairment	9,305,000		6,229,000
Acquired and accounted for under ASC 310-30	6,000	[1]	60,000	[1]
Allowance for credit losses
Acquired and accounted for under ASC 310-30	6,000	[1]	60,000	[1]
Loans:
Individually evaluated for impairment	337,000		782,000
Collectively evaluated for impairment	183,768,000		132,215,000
Acquired and accounted for under ASC 310-30	28,801,000	[1]	36,752,000	[1]
Total loans	212,906,000		169,749,000
Indirect vehicle
Allowance for credit losses [Roll Forward]
Beginning Balance	1,687,000		1,662,000
Charge-offs	874,000		920,000
Recoveries	475,000		442,000
Provision	427,000		500,000
Ending Balance	1,715,000		1,684,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	14,000		25,000
Collectively evaluated for impairment	1,701,000		1,659,000
Loans:
Individually evaluated for impairment	164,000		183,000
Collectively evaluated for impairment	272,941,000		265,861,000
Total loans	273,105,000		266,044,000
Home equity lines
Allowance for credit losses [Roll Forward]
Beginning Balance	9,456,000		8,478,000
Charge-offs	444,000		619,000
Recoveries	101,000		133,000
Provision	(333,000)		405,000
Ending Balance	8,780,000		8,397,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment	2,348,000		1,395,000
Collectively evaluated for impairment	6,432,000		7,002,000
Loans:
Individually evaluated for impairment	27,979,000		24,810,000
Collectively evaluated for impairment	213,099,000		233,310,000
Acquired and accounted for under ASC 310-30	75,000	[1]	110,000	[1]
Total loans	241,153,000		258,230,000
Other consumer
Allowance for credit losses [Roll Forward]
Beginning Balance	1,960,000		1,630,000
Charge-offs	424,000		495,000
Recoveries	69,000		78,000
Provision	469,000		351,000
Ending Balance	2,074,000		1,564,000
Ending allowance balance attributable to loans:
Individually evaluated for impairment			0
Collectively evaluated for impairment	2,074,000		1,564,000
Loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	77,645,000		64,812,000
Acquired and accounted for under ASC 310-30	19,801,000	[1]	25,976,000	[1]
Total loans	97,446,000		90,788,000
Purchased loans
Allowance for credit losses [Roll Forward]
Provision	(429,000)
Loans:
Total loans	71,700,000
Provision and charge-offs related to the number of pools	16
Allowance for loan losses and unfunded commitments write offs net of recoveries	$ (220,000)

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

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Business Combinations (Details 4) (Taylor Capital Group, Inc., USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Taylor Capital Group, Inc.
Business Acquisition [Line Items]
Pretax merger related costs	$ 8,100,000	$ 680,000
Total revenues (net interest income plus non-interest income)		185,028,000
Net income		$ 34,752,000

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Loans (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Schedule of composition of loans

Loans consist of the following at (in thousands):

	March 31, 2015		December 31, 2014
Commercial loans	$	3,258,652	$	3,245,206
Commercial loans collateralized by assignment of lease payments	1,628,031		1,692,258
Commercial real estate	2,525,640		2,544,867
Residential real estate	505,558		503,287
Construction real estate	184,105		247,068
Indirect vehicle	273,105		268,840
Home equity	241,078		251,909
Other consumer loans	77,645		78,137
Total loans, excluding purchased credit-impaired and covered loans	8,693,814		8,831,572
Purchased credit-impaired and covered loans	227,514		251,645
Total loans	$	8,921,328	$	9,083,217

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 March 31, 2015 and December 31, 2014 (in thousands):

	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total Past Due		Total
March 31, 2015
Commercial	$	3,220,398	$	27,393	$	1,899	$	8,962	$	38,254	$	3,258,652
Commercial collateralized by assignment of lease payments	1,611,508		12,350		2,062		2,111		16,523		1,628,031
Commercial real estate
Healthcare	344,393		—		—		—		—		344,393
Industrial	334,667		—		—		2,309		2,309		336,976
Multifamily	372,358		2,823		—		1,336		4,159		376,517
Retail	436,710		240		1,817		2,054		4,111		440,821
Office	243,266		1,235		23		2,048		3,306		246,572
Other	776,851		1,156		281		2,073		3,510		780,361
Residential real estate	492,557		5,060		951		6,990		13,001		505,558
Construction real estate	183,768		—		—		337		337		184,105
Indirect vehicle	270,474		1,933		473		225		2,631		273,105
Home equity	232,851		2,551		268		5,408		8,227		241,078
Other consumer	77,546		76		23		—		99		77,645
Total loans, excluding purchased credit-impaired and covered loans	8,597,347		54,817		7,797		33,853		96,467		8,693,814
Purchased credit-impaired and covered loans	134,140		8,291		1,685		83,398		93,374		227,514
Total loans	$	8,731,487	$	63,108	$	9,482	$	117,251	$	189,841	$	8,921,328
Non-performing loan aging	$	45,674	$	3,018	$	911	$	33,675	$	37,604	$	83,278
December 31, 2014
Commercial	$	3,231,571	$	8,222	$	—	$	5,413	$	13,635	$	3,245,206
Commercial collateralized by assignment of lease payments	1,679,991		2,025		6,095		4,147		12,267		1,692,258
Commercial real estate
Healthcare	342,984		—		—		—		—		342,984
Industrial	333,907		944		—		3,182		4,126		338,033
Multifamily	417,504		1,377		—		1,517		2,894		420,398
Retail	432,718		2,481		652		2,325		5,458		438,176
Office	244,166		—		—		2,127		2,127		246,293
Other	754,031		307		2,421		2,224		4,952		758,983
Residential real estate	485,492		8,038		2,319		7,438		17,795		503,287
Construction real estate	246,731		—		—		337		337		247,068
Indirect vehicle	265,296		2,516		702		326		3,544		268,840
Home equity	242,756		2,717		1,039		5,397		9,153		251,909
Other consumer	78,106		16		12		3		31		78,137
Total loans, excluding purchased credit-impaired and covered loans	8,755,253		28,643		13,240		34,436		76,319		8,831,572
Purchased credit-impaired and covered loans	158,215		4,432		585		88,413		93,430		251,645
Total loans	$	8,913,468	$	33,075	$	13,825	$	122,849	$	169,749	$	9,083,217
Non-performing loan aging	$	46,149	$	5,764	$	1,099	$	34,075	$	40,938	$	87,087

Recorded investment in nonaccrual 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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
			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	$	13,897	$	75	$	14,088	$	—
Commercial collateralized by assignment of lease payments	3,602		741		2,404		3,566
Commercial real estate:
Healthcare	—		—		—		—
Industrial	4,816		—		6,371		—
Multifamily	5,008		—		5,333		—
Office	3,268		—		3,644		464
Retail	2,898		—		2,986		—
Other	13,655		—		13,541		324
Residential real estate	16,925		891		17,311		—
Construction real estate	337		—		337		—
Indirect vehicle	1,473		—		1,542		—
Home equity	15,672		—		15,171		—
Other consumer	20		—		5		—
Total	$	81,571	$	1,707	$	82,733	$	4,354

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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015
Commercial	$	3,029,893	$	155,032	$	73,727	$	—	$	3,258,652
Commercial collateralized by assignment of lease payments	1,614,968		935		12,128		—		1,628,031
Commercial real estate
Healthcare	340,036		4,357		—		—		344,393
Industrial	314,666		13,200		9,110		—		336,976
Multifamily	368,675		1,287		6,555		—		376,517
Retail	426,760		4,165		9,896		—		440,821
Office	225,451		13,544		7,577		—		246,572
Other	727,643		17,426		35,292		—		780,361
Construction real estate	183,244		524		337		—		184,105
Total	$	7,231,336	$	210,470	$	154,622	$	—	$	7,596,428
December 31, 2014
Commercial	$	3,036,069	$	178,984	$	30,153	$	—	$	3,245,206
Commercial collateralized by assignment of lease payments	1,680,736		6,853		4,669		—		1,692,258
Commercial real estate
Healthcare	338,622		4,362		—		—		342,984
Industrial	314,225		8,817		14,991		—		338,033
Multifamily	412,824		920		6,654		—		420,398
Retail	423,842		2,740		11,594		—		438,176
Office	229,947		8,524		7,822		—		246,293
Other	708,447		22,013		28,523		—		758,983
Construction real estate	246,204		527		337		—		247,068
Total	$	7,390,916	$	233,740	$	104,743	$	—	$	7,729,399

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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	Performing		Non-performing		Total
March 31, 2015
Residential real estate	$	487,742	$	17,816	$	505,558
Indirect vehicle	271,631		1,474		273,105
Home equity	225,407		15,671		241,078
Other consumer	77,625		20		77,645
Total	$	1,062,405	$	34,981	$	1,097,386
December 31, 2014
Residential real estate	$	485,976	$	17,311	$	503,287
Indirect vehicle	267,297		1,543		268,840
Home equity	236,739		15,170		251,909
Other consumer	78,132		5		78,137
Total	$	1,068,144	$	34,029	$	1,102,173

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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015
									Three Months 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	$	9,686	$	8,925	$	761	$	—	$	10,640	$	—
Commercial collateralized by assignment of lease payments	1,508		1,508		—		—		1,626		29
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	5,846		4,670		1,176		—		4,962		—
Multifamily	1,698		1,698		—		—		1,792		7
Retail	2,019		807		1,212		—		825		—
Office	1,608		1,031		577		—		1,609		—
Other	1,490		1,465		25		—		1,527		—
Residential real estate	970		970		—		—		—		—
Construction real estate	—		—		—		—		—		—
Indirect vehicle	—		—		—		—
Home equity	1,025		1,025		—		—		—		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	6,464		6,464		—		2,051		6,760		—
Commercial collateralized by assignment of lease payments	2,145		2,145		—		1,534		1,331		14
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	146		146		—		37		49		—
Multifamily	5,723		4,749		974		664		5,926		8
Retail	8,889		7,493		1,396		626		7,710		—
Office	2,369		1,866		503		484		2,274		—
Other	12,247		12,227		20		100		13,207		—
Residential real estate	14,153		14,153		—		3,045		14,407		—
Construction real estate	2,708		337		2,371		162		431		—
Indirect vehicle	164		164		—		14		372		—
Home equity	26,954		26,954		—		2,348		27,213		—
Other consumer	—		—		—		—		—		—
Total	$	107,812	$	98,797	$	9,015	$	11,065	$	102,661	$	58

	December 31, 2014
	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	$	9,752	$	8,992	$	760	$	—	$	10,324	$	—
Commercial collateralized by assignment of lease payments	2,316		2,316		—		—		2,569		121
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	9,115		5,858		3,257		—		7,870		—
Multifamily	1,733		1,733		—		—		1,928		52
Retail	2,025		813		1,212		—		3,465		—
Office	—		—		—		—		1,127		—
Other	1,479		1,465		14		—		5,249		—
Residential real estate	1,941		1,941		—		—		2,740		—
Construction real estate	—		—		—		—		34		—
Indirect vehicle	—		—		—		—		—		—
Home equity	577		577		—		—		762		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	7,987		7,987		—		2,395		14,227		—
Commercial collateralized by assignment of lease payments	715		715		—		105		1,515		91
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	517		513		4		130		4,982		—
Multifamily	5,680		4,709		971		996		6,354		131
Retail	9,264		7,897		1,367		720		8,547		—
Office	4,528		2,986		1,542		545		2,833		—
Other	12,612		12,527		85		136		11,022		12
Residential real estate	14,234		14,234		—		3,126		14,632		—
Construction real estate	2,707		337		2,370		162		455		—
Indirect vehicle	227		227		—		14		358		—
Home equity	25,927		25,705		222		2,153		25,672		—
Other consumer	—		—		—		—		—		—
Total	$	113,336	$	101,532	$	11,804	$	10,482	$	126,665	$	407

Schedule of loans that have been restructured classified as performing and non-performing

The following table presents loans that were restructured during the three months ended March 31, 2015 (dollars in thousands):

	March 31, 2015
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Home equity	6	$	2,346	$	2,346	$	—
Total	6	$	2,346	$	2,346	$	—
Non-Performing:
Indirect vehicle	3	$	9	$	9	$	—
Home equity	5	798		798		122
Total	8	$	807	$	807	$	122

The following table presents loans that were restructured during the three months ended March 31, 2014 (dollars in thousands):

	March 31, 2014
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Indirect vehicle	1	$	5	$	5	$	—
Home equity	3	1,039		1,039		—
Total	4	$	1,044	$	1,044	$	—
Non-Performing:
Residential real estate	4	$	1,439	$	1,439	$	—
Indirect vehicle	18	108		108		—
Home equity	4	532		532		—
Total	26	$	2,079	$	2,079	$	—

Troubled debt restructuring activity rollforward

The following table presents the troubled debt restructurings activity during the three months endedMarch 31, 2015 (in thousands):

	Performing			Non-performing
Beginning balance	$	15,603		$	25,771
Additions	2,346			807
Charge-offs	—			(203		)
Principal payments, net	(111		)	(619		)
Removals	(1,185		)	(22		)
Transfer from/to performing	221			—
Transfer from/to non-performing	—			(221		)
Ending balance	$	16,874		$	25,513

Type of financing receivable modifications and restructuring

The following table presents the type of modification for loans that have been restructured during the three months endedMarch 31, 2015 (in thousands):

	March 31, 2015
	Extended
	Maturity,		Delay in
	Amortization		Payments or
	and Reduction		Reduction of
	of Interest Rate		Interest Rate		Total
Indirect vehicle	$	—	$	9	$	9
Home equity	791		2,353		3,144
Total	$	791	$	2,362	$	3,153

Allowance activity for loan losses by portfolio segment based on impairment method

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 March 31, 2015 and 2014 (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
March 31, 2015
Allowance for credit losses:
Three Months Ended
Beginning balance	$	29,571		$	9,962		$	41,826	$	6,646		$	8,918		$	1,687	$	9,456		$	1,960	$	4,031		$	114,057
Charge-offs	569			—			2,034		579			3			874		444			424		—			4,927
Recoveries	242			749			1,375		72			2			475		101			69		—			3,085
Provision	3,583			(886		)	791		621			556			427		(333		)	469		(254		)	4,974
Ending balance	$	32,827		$	9,825		$	41,958	$	6,760		$	9,473		$	1,715	$	8,780		$	2,074	$	3,777		$	117,189
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,051		$	1,534		$	1,911	$	3,045		$	162		$	14	$	2,348		$	—	$	1,333		$	12,398
Collectively evaluated for impairment	30,320			8,291			39,435		3,715			9,305			1,701		6,432			2,074		2,444			103,717
Acquired and accounted for under ASC 310-30 (1)	456			—			612		—			6			—		—			—		—			1,074
Total ending allowance balance	$	32,827		$	9,825		$	41,958	$	6,760		$	9,473		$	1,715	$	8,780		$	2,074	$	3,777		$	117,189
Loans:
Individually evaluated for impairment	$	15,389		$	3,653		$	36,152	$	15,123		$	337		$	164	$	27,979		$	—	$	—		$	98,797
Collectively evaluated for impairment	3,243,263			1,624,378			2,489,488		490,435			183,768			272,941		213,099			77,645		—			8,595,017
Acquired and accounted for under ASC 310-30 (1)	84,564			—			75,008		19,265			28,801			—		75			19,801		—			227,514
Total ending loans balance	$	3,343,216		$	1,628,031		$	2,600,648	$	524,823		$	212,906		$	273,105	$	241,153		$	97,446	$	—		$	8,921,328
March 31, 2014
Allowance for credit losses:
Three Months Ended
Beginning balance	$	23,461		$	9,159		$	51,628	$	8,872		$	6,856		$	1,662	$	8,478		$	1,630	$	1,716		$	113,462
Charge-offs	90			—			7,156		265			56			920		619			495		—			9,601
Recoveries	1,628			—			485		519			99			442		133			78		—			3,384
Provision	(1,061		)	(101		)	2,583		(1,039		)	(415		)	500		405			351		(73		)	1,150
Ending balance	$	23,938		$	9,058		$	47,540	$	8,087		$	6,484		$	1,684	$	8,397		$	1,564	$	1,643		$	108,395
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,160		$	174		$	4,151	$	3,076		$	195		$	25	$	1,395		$	—	$	665		$	15,841
Collectively evaluated for impairment	17,312			8,884			41,707		5,011			6,229			1,659		7,002			1,564		978			90,346
Acquired and accounted for under ASC 310-30 (1)	466			—			1,682		—			60			—		—			—		—			2,208
Total ending allowance balance	$	23,938		$	9,058		$	47,540	$	8,087		$	6,484		$	1,684	$	8,397		$	1,564	$	1,643		$	108,395
Loans:
Individually evaluated for impairment	$	41,191		$	4,235		$	57,960	$	18,151		$	782		$	183	$	24,810		$	—	$	—		$	147,312
Collectively evaluated for impairment	1,208,639			1,468,386			1,565,549		287,790			132,215			265,861		233,310			64,812		—			5,226,562
Acquired and accounted for under ASC 310-30 (1)	30,976			—			95,506		5,121			36,752			—		110			25,976		—			194,441
Total ending loans balance	$	1,280,806		$	1,472,621		$	1,719,015	$	311,062		$	169,749		$	266,044	$	258,230		$	90,788	$	—		$	5,568,315

⁽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 months endedMarch 31, 2015 and 2014 (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Balance at beginning of period	$	7,434		$	2,337
Accretion	(1,930		)	(550		)
Other	863			574
Balance at end of period	$	6,367		$	2,361

Purchased loans disclosures

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

March 31, 2015	Purchased Credit-Impaired Loans		Purchased Non-Credit-Impaired Loans		Total
Covered loans:
Commercial related (1)	$	139	$	4	$	143
Commercial	837		273		1,110
Commercial real estate	19,570		13,669		33,239
Construction real estate	—		1,269		1,269
Other	1,134		19,794		20,928
Total covered loans	$	21,680	$	35,009	$	56,689
Estimated (payable) receivable amount from the FDIC under the loss-share agreement (2)	$	482	$	4,125	$	4,607
Non-covered loans:
Commercial related (1)	$	7,033	$	11,495	$	18,528
Commercial loans	76,279		1,285,210		1,361,489
Commercial loans collateralized by assignment of lease payments	—		114,829		114,829
Commercial real estate	41,769		840,863		882,632
Construction real estate	27,532		89,200		116,732
Other	18,212		198,740		216,952
Total non-covered loans	$	170,825	$	2,540,337	$	2,711,162

⁽¹⁾  Commercial related loans include commercial, commercial real estate and construction real estate for the InBank, Heritage and Benchmark FDIC-assisted transactions.

⁽²⁾  Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $1.3 million in amounts due to the FDIC related to covered other real estate owned.

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Goodwill and Intangibles (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of core deposit and client relationship intangibles

The following table presents the changes in the carrying amount of core deposit and client relationship intangibles, gross carrying amount, accumulated amortization, and net book value as of March 31, 2015 (in thousands):

	Three Months Ended
	March 31, 2015
Balance at beginning of period	$	38,006
Amortization expense	(1,518		)
Balance at end of period	$	36,488
Gross carrying amount	$	80,371
Accumulated amortization	(43,883		)
Net book value	$	36,488

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
2015	$	4,445
2016	5,157
2017	4,637
2018	4,221
2019	2,743
Thereafter	15,285
	$	36,488

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flows From Operating Activities
Net income	$ 34,111	$ 19,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment and leased equipment	14,737	13,653
Branch exit and facilities impairment charges	7,391	0
Compensation expense for share-based payment plans	3,605	2,012
Net gain on sales of premises and equipment and leased equipment	(167)	(630)
Amortization of other intangibles	1,518	1,240
Provision for credit losses	4,974	1,150
Deferred income tax expense	8,384	(1,406)
Amortization of premiums and discounts on investment securities, net	11,231	11,110
Accretion of premiums and discounts on loans, net	(9,879)	(550)
Accretion of FDIC indemnification asset	(24)	(31)
Net loss (gain) on investment securities	460	(317)
Proceeds from sale of loans held for sale	1,741,704	3,247
Origination of loans held for sale	(1,701,005)	(3,342)
Net gain on sale of loans held for sale	(12,574)	(59)
Change in fair value of mortgage servicing rights	32,793	0
Net loss on sales of other real estate owned	888	122
Net loss on other real estate owned related to FDIC-assisted transactions	273	65
Increase in cash surrender value of life insurance	(839)	(827)
(Increase) decrease in other assets, net	(38,984)	23,713
Decrease in other liabilities, net	(41,616)	(36,590)
Net cash provided by operating activities	56,981	32,529
Cash Flows From Investing Activities
Decrease in federal funds sold	0	35,450
Proceeds from sales of investment securities available for sale	28,067	11,375
Proceeds from maturities and calls of investment securities available for sale	51,922	61,989
Purchases of investment securities available for sale	(11,570)	(37,670)
Proceeds from maturities and calls of investment securities held to maturity	19,177	11,736
Purchases of investment securities held to maturity	(24,448)	(12,836)
Purchases of non-marketable securities - FHLB and FRB stock	(12,108)	(15)
Net decrease in loans	190,353	134,795
Purchases in mortgage servicing rights	(85)	0
Purchases of premises and equipment and leased equipment	(11,557)	(5,572)
Proceeds from sales of premises and equipment and leased equipment	1,326	4,219
Proceeds from sale of other real estate owned	1,086	2,778
Proceeds from sale of other real estate owned related to FDIC-assisted transactions	2,087	631
Net proceeds from FDIC related covered assets	(3,773)	3,032
Net cash provided by investing activities	230,477	209,912
Cash Flows From Financing Activities
Net increase in deposits	28,559	104,488
Net decrease in short-term borrowings	(316,184)	(303,517)
Proceeds from long-term borrowings	7,650	6,117
Principal paid on long-term borrowings	(5,089)	(2,612)
Treasury stock transactions, net	(985)	(334)
Stock options exercised	45	61
Excess tax expense from share-based payment arrangements	12	95
Dividends paid on preferred stock	(2,000)	0
Dividends paid on common stock	(10,495)	(6,576)
Net cash used in financing activities	(298,487)	(202,278)
Net (decrease) increase in cash and cash equivalents	(11,029)	40,163
Cash and cash equivalents:
Beginning of period	312,081	473,459
End of period	301,052	513,622
Cash payments for:
Interest paid to depositors and other borrowed funds	7,438	5,275
Income tax payments, net	987	1,967
Supplemental Schedule of Noncash Investing Activities:
Investment securities held to maturity purchased not settled	6,416	9,941
Loans held for sale transferred to loans held for investment	20,829	0
Loans transferred to other real estate owned	4,615	539
Loans transferred to other real estate owned related to FDIC-assisted transactions	1,345	3,419
Loans transferred to repossessed vehicles	286	205
Operating leases rewritten as direct finance leases included as loans	$ 5,590	$ 316

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Deposits (Tables)

3 Months Ended

Mar. 31, 2015

Deposits [Abstract]

Schedule of composition of deposits

The composition of deposits was as follows (in thousands):

	March 31,		December 31,
	2015		2014
Demand deposit accounts, noninterest bearing	$	4,290,499	$	4,118,256
NOW and money market accounts	4,002,818		3,913,765
Savings accounts	969,560		940,345
Certificates of deposit, $250,000 or more	716,701		838,928
Other certificates of deposit	1,039,923		1,179,648
Total	$	11,019,501	$	10,990,942

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Earnings Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Basic and diluted earnings per common share:
Net income	$ 34,111	$ 19,969
Less: preferred stock dividends	2,000	0
Net income available to common stockholders	32,111	19,969
Earnings allocated to common stockholders	32,110	19,969
Weighted average shares outstanding for basic earnings per common share	74,567,104	54,639,951
Weighted average shares outstanding for diluted earnings per common share	75,164,716	55,265,188
Basic earnings per common share	$ 0.43	$ 0.37
Diluted earnings per common share	$ 0.43	$ 0.36
Common Stock
Basic and diluted earnings per common share:
Distributed earnings allocated to common stock	10,610	6,666
Undistributed earnings	23,501	13,303
Net income	34,111	19,969
Net income available to common stockholders	32,111	19,969
Dilutive effect of equity awards	597,612	625,237
Weighted average shares outstanding for diluted earnings per common share	75,164,716	55,265,188
Participating Securities
Basic and diluted earnings per common share:
Less: earnings allocated to participating securities	$ 1	$ 0

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Loans (Details 6) (USD $)	3 Months Ended
	Mar. 31, 2015 note	Mar. 31, 2014	Dec. 31, 2014
Restructured loans
Loans required to be pledged as collateral for long-term Federal Home Loan Bank advances	$ 1,300,000,000		$ 1,300,000,000
Financing Receivable Modifications Number of Separate Notes into which Note is Restructured	2
Redefaulted loans	223,651.000
Period past due of recorded redefaulted loans (in days)	90 days	90 days
Performing
Restructured loans
Number of loans	6	4
Pre-Modification Recorded Investment	2,346,000	1,044,000
Post-Modification Recorded Investment	2,346,000	1,044,000
Charge-offs and Specific Reserves	0	0
Non-performing
Restructured loans
Number of loans	8	26
Pre-Modification Recorded Investment	807,000	2,079,000
Post-Modification Recorded Investment	807,000	2,079,000
Charge-offs and Specific Reserves	122,000	0
Residential real estate | Non-performing
Restructured loans
Number of loans		4
Pre-Modification Recorded Investment		1,439,000
Post-Modification Recorded Investment		1,439,000
Charge-offs and Specific Reserves		0
Indirect vehicle | Performing
Restructured loans
Number of loans		1
Pre-Modification Recorded Investment		5,000
Post-Modification Recorded Investment		5,000
Charge-offs and Specific Reserves		0
Indirect vehicle | Non-performing
Restructured loans
Number of loans	3	18
Pre-Modification Recorded Investment	9,000	108,000
Post-Modification Recorded Investment	9,000	108,000
Charge-offs and Specific Reserves	0	0
Home equity lines | Performing
Restructured loans
Number of loans	6	3
Pre-Modification Recorded Investment	2,346,000	1,039,000
Post-Modification Recorded Investment	2,346,000	1,039,000
Charge-offs and Specific Reserves	0	0
Home equity lines | Non-performing
Restructured loans
Number of loans	5	4
Pre-Modification Recorded Investment	798,000	532,000
Post-Modification Recorded Investment	798,000	532,000
Charge-offs and Specific Reserves	$ 122,000	0

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Fair Value Measurements (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Fair value assumption, allowance for impaired real estate loans percentage	90.00%
Investment securities
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance, beginning of period	$ 973	$ 5,856
Purchases	0	0
Originations	0	0
Other comprehensive income	0	(179)
Included in earnings	0	0
Principal payments	(38)	(178)
Balance, ending of period	935	5,499
Mortgage servicing rights
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance, beginning of period	235,402	0
Purchases	85	0
Originations	16,560	0
Other comprehensive income	0	0
Included in earnings	(32,793)	0
Principal payments	0	0
Balance, ending of period	219,254	0
Mortgage derivative instruments
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance, beginning of period	5,074	0
Purchases	0	0
Originations	0	0
Other comprehensive income	0	0
Included in earnings	6,140	0
Principal payments	0	0
Balance, ending of period	$ 11,214	$ 0

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 248,840	$ 256,804
Interest earning deposits with banks	52,212	55,277
Total cash and cash equivalents	301,052	312,081
Investment securities:
Securities available for sale, at fair value	1,589,424	1,654,752
Securities held to maturity, at amortized cost ($1,045,205 fair value at March 31, 2015 and $1,035,061 at December 31, 2014)	1,000,859	993,380
Non-marketable securities - FHLB and FRB stock	87,677	75,569
Total investment securities	2,677,960	2,723,701
Loans held for sale	686,838	737,209
Loans:
Total loans, excluding purchased credit impaired and covered loans	8,693,814	8,831,572
Purchased credit impaired and covered loans	227,514	251,645
Total loans	8,921,328	9,083,217
Less: Allowance for loan losses	113,412	110,026
Net loans	8,807,916	8,973,191
Lease investments, net	159,191	162,833
Premises and equipment, net	234,077	238,377
Cash surrender value of life insurance	134,401	133,562
Goodwill	711,521	711,521
Other intangibles	36,488	38,006
Mortgage servicing rights, at fair value	219,254	235,402
Other real estate owned, net	21,839	19,198
Other real estate owned related to FDIC-assisted transactions	17,890	19,328
Other assets	319,883	297,690
Total assets	14,328,310	14,602,099
Deposits:
Non-interest bearing	4,290,499	4,118,256
Interest bearing	6,729,002	6,872,686
Total deposits	11,019,501	10,990,942
Short-term borrowings	615,231	931,415
Long-term borrowings	85,477	82,916
Junior subordinated notes issued to capital trusts	185,874	185,778
Accrued expenses and other liabilities	363,934	382,762
Total liabilities	12,270,017	12,573,813
STOCKHOLDERS’ EQUITY
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at March 31, 2015 and December 31, 2014; Series A, 8% perpetual non-cumulative, 4,000,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, $25 liquidation value)	115,280	115,280
Common stock, ($0.01 par value; authorized 100,000,000 shares at March 31, 2015 and December 31, 2014; issued 75,355,257 shares at March 31, 2015 and 75,067,482 shares at December 31, 2014)	754	751
Additional paid-in capital	1,268,851	1,267,761
Retained earnings	651,178	629,677
Accumulated other comprehensive income	26,101	20,356
Less: 233,181 and 296,715 shares of treasury common stock, at cost, at March 31, 2015 and December 31, 2014, respectively	(5,277)	(6,974)
Controlling interest stockholders’ equity	2,056,887	2,026,851
Noncontrolling interest	1,406	1,435
Total stockholders’ equity	2,058,293	2,028,286
Total liabilities and stockholders’ equity	$ 14,328,310	$ 14,602,099

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Investment Securities (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Available for Sale
Amortized Cost	$ 1,548,972	$ 1,624,268
Gross Unrealized Gains	43,437	35,370
Gross Unrealized Losses	(2,985)	(4,886)
Fair Value	1,589,424	1,654,752
Held to Maturity
Investment securities held to maturity	1,000,859	993,380
Gross Unrealized Gains	44,630	42,063
Gross Unrealized Losses	(284)	(382)
Investment securities held to maturity	1,045,205	1,035,061
Total Available for Sale and Held to Maturity Investment Securities
Amortized Cost	2,549,831	2,617,648
Gross Unrealized Gains	88,067	77,433
Gross Unrealized Losses	(3,269)	(5,268)
Fair Value	2,634,629	2,689,813
U.S. Government sponsored agencies and enterprises
Available for Sale
Amortized Cost	64,411	64,612
Gross Unrealized Gains	1,659	1,281
Gross Unrealized Losses	0	(20)
Fair Value	66,070	65,873
States and political subdivisions
Available for Sale
Amortized Cost	381,704	390,076
Gross Unrealized Gains	21,953	20,846
Gross Unrealized Losses	(29)	(68)
Fair Value	403,628	410,854
Held to Maturity
Investment securities held to maturity	764,931	752,558
Gross Unrealized Gains	32,136	30,089
Gross Unrealized Losses	(284)	(382)
Investment securities held to maturity	796,783	782,265
Total Available for Sale and Held to Maturity Investment Securities
Percentage of securities consisting general obligation issues	93.00%
States and political subdivisions | State of Illinois
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	25.00%
Residential mortgage-backed securities
Available for Sale
Amortized Cost	666,904	713,413
Gross Unrealized Gains	12,383	8,977
Gross Unrealized Losses	(812)	(1,827)
Fair Value	678,475	720,563
Held to Maturity
Investment securities held to maturity	235,928	240,822
Gross Unrealized Gains	12,494	11,974
Gross Unrealized Losses	0	0
Investment securities held to maturity	248,422	252,796
Commercial mortgage-backed securities
Available for Sale
Amortized Cost	174,823	186,110
Gross Unrealized Gains	3,816	1,772
Gross Unrealized Losses	(181)	(220)
Fair Value	178,458	187,662
Corporate bonds
Available for Sale
Amortized Cost	250,543	259,526
Gross Unrealized Gains	3,462	2,428
Gross Unrealized Losses	(1,963)	(2,751)
Fair Value	252,042	259,203
Equity securities
Available for Sale
Amortized Cost	10,587	10,531
Gross Unrealized Gains	164	66
Gross Unrealized Losses	0	0
Fair Value	$ 10,751	$ 10,597

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands, unless otherwise specified	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income, Net of Tax	Treasury Stock	Noncontrolling Interest
Beginning balance at Dec. 31, 2013	$ 1,326,682	$ 0	$ 551	$ 738,053	$ 581,998	$ 8,383	$ (3,747)	$ 1,444
Increase (Decrease) in Stockholders' Equity
Net income	20,039				19,969			70
Other comprehensive income, net of tax	1,979					1,979
Cash dividends declared on common stock	(6,666)				(6,666)
Restricted common stock activity, net of tax	104		2	102
Stock option activity, net of tax	27			27
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan	(334)			51			(385)
Stock-based compensation expense	2,012			2,012
Distributions to noncontrolling interest	(63)							(63)
Ending balance at Mar. 31, 2014	1,343,780	0	553	740,245	595,301	10,362	(4,132)	1,451
Beginning balance at Dec. 31, 2014	2,028,286	115,280	751	1,267,761	629,677	20,356	(6,974)	1,435
Increase (Decrease) in Stockholders' Equity
Net income	34,182				34,111			71
Other comprehensive income, net of tax	5,745					5,745
Cash dividends declared on preferred shares	(2,000)				(2,000)
Cash dividends declared on common stock	(10,610)				(10,610)
Restricted common stock activity, net of tax	135		3	(2,744)			2,876
Stock option activity, net of tax	35			35
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan	(985)			194			(1,179)
Stock-based compensation expense	3,605			3,605
Distributions to noncontrolling interest	(100)							(100)
Ending balance at Mar. 31, 2015	$ 2,058,293	$ 115,280	$ 754	$ 1,268,851	$ 651,178	$ 26,101	$ (5,277)	$ 1,406

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Goodwill and Intangibles (Details) (USD $)	3 Months Ended
	Mar. 31, 2015 segment	Mar. 31, 2014	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments	3
Goodwill, Impairment Loss	$ 0	$ 0
Goodwill	$ 711,521,000		$ 711,521,000
Weighted average amortization period (in years)	5 years

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of outstanding financial instruments, contractual amounts of off-balance sheet credit risk

At March 31, 2015 and December 31, 2014, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands):

	Contractual Amount
	March 31, 2015		December 31, 2014
Commitments to extend credit:
Home equity lines	$	209,466	$	221,102
Other commitments	2,651,028		2,643,220
Letters of credit:
Standby	132,056		131,810
Commercial	5,992		2,401

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Long-term Borrowings (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Long-term borrowings
Federal Home Loan Bank advances	$ 4,100,000	$ 4,200,000
Effective interest rates on Federal Home Loan Bank advances, low end of range (as a percent)	3.23%
Effective interest rates on Federal Home Loan Bank advances, high end of range (as a percent)	5.87%
Long-term Debt	85,477,000	82,916,000
Notes payable to banks
Long-term borrowings
Long-term Debt	41,200,000	38,500,000
Minimum interest rates (as a percent)	2.25%
Maximum interest rates (as a percent)	12.00%
Equipment pledged as collateral	50,800,000	48,800,000
Structured repurchase agreement
Long-term borrowings
Long-term Debt	$ 40,000,000	$ 40,000,000
Term of structured repurchase agreement (in years)	10 years	10 years
Fixed interest rate, if option not exercised (as a percent)	4.75%	4.75%

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Stock Incentive Plans

3 Months Ended

Mar. 31, 2015

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
	March 31,
	2015		2014
Total cost of share-based payment plans during the period	$	3,605	$	2,012
Amount of related income tax benefit recognized in income	1,412		$	790

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. Following May 28, 2014, no more than 10% of the total number of authorized shares may be issued with respect to awards granted after that date, 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 March 31, 2015, there were 4,979,712 shares available for future grants.

Prior to 2014, annual equity-based incentive awards were typically granted to selected officers and employees mid-year. In 2014, these awards began being granted 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 stock options outstanding for the three months endedMarch 31, 2015:

	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, 2014	2,250,714		$	27.94	4.39
Granted	296,413		31.26
Exercised	(7,284	)	19.85
Expired or cancelled	(3,933	)	30.34
Forfeited	(2,928	)	25.00
Options outstanding as of March 31, 2015	2,532,982		$	28.35	4.81	$	11,342
Options exercisable as of March 31, 2015	1,729,575		$	29.07	3.12	$	7,723

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 three months endedMarch 31, 2015:

	March 31, 2015
Risk-free interest rate	1.71		%
Expected volatility of Company’s stock	30.43		%
Expected dividend yield	1.79		%
Expected life of options	5.9 years
Weighted average fair value per option of options granted during the year	$	8.08

The total intrinsic value of options exercised during the three months endedMarch 31, 2015 and 2014 was $81 thousand and $550 thousand, respectively.

The following is a summary of changes in restricted shares and units for the three months endedMarch 31, 2015:

	Number of Shares and Units		Weighted Average Grant Date Fair Value
Shares Outstanding at December 31, 2014	801,085		$	26.99
Granted	490,504		31.65
Vested	(94,740	)	27.74
Forfeited	(3,539	)	27.08
Shares Outstanding at March 31, 2015	1,193,310		$	28.85

The total intrinsic value of restricted shares that vested during the three months endedMarch 31, 2015 and 2014 was $3.0 million and $1.0 million, respectively.

The Company issued 71,560, 48,569, 56,752 and 65,333 market-based restricted stock units in 2015, 2014, 2013 and 2012, 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 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 of issuance.

As of March 31, 2015, there was $31.6 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 March 31, 2015, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 2.7 years.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014, 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)
March 31, 2015
Financial assets
Securities available for sale:
U.S Government sponsored agencies and enterprises	$	66,070	$	—	$	66,070	$	—
States and political subdivisions	403,628		—		403,165		463
Residential mortgage-backed securities	678,475		—		678,003		472
Commercial mortgage-backed securities	178,458		—		178,458		—
Corporate bonds	252,042		—		252,042		—
Equity securities	10,751		10,751		—		—
Loans held for sale	686,838		—		686,838		—
Loans	20,829		—		20,829		—
Mortgage servicing rights	219,254		—		—		219,254
Assets held in trust for deferred compensation	18,087		18,087		—		—
Derivative financial instruments	68,283		6,427		50,642		11,214
Financial liabilities
Other liabilities (1)	17,633		17,633		—		—
Derivative financial instruments	47,162		8,235		38,927		—
December 31, 2014
Financial assets
Securities available for sale:
U.S. Government sponsored agencies and enterprises	$	65,873	$	—	$	65,873	$	—
States and political subdivisions	410,854		—		410,391		463
Residential mortgage-backed securities	720,563		—		720,053		510
Commercial mortgage-backed securities	187,662		—		187,662		—
Corporate bonds	259,203		—		259,203		—
Equity securities	10,597		10,597		—		—
Loans held for sale	737,209		—		737,209		—
Mortgage servicing rights	235,402		—		—		235,402
Assets held in trust for deferred compensation	16,829		16,829		—		—
Derivative financial instruments	46,388		1,607		39,707		5,074
Financial liabilities
Other liabilities (1)	16,483		16,483		—		—
Derivative financial instruments	40,499		7,209		33,290		—

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

Financial assets measured at fair value on a recurring and non-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 nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy:

	Fair Value at		Valuation	Unobservable
	March 31, 2015		Technique	Input	Range
	(in thousands)
Impaired loans	$	61,757	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	39,889		Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%

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 at
	March 31, 2015		Valuation Technique	Unobservable Input	Range
	(in thousands)
States and political subdivisions	$	463	Discounted cash flows	Credit assumption	45% Loss
Residential mortgage-backed securities	472		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	219,254		Discounted cash flows	CPR	10.4% - 14.2%
				Discount rate	9.25 - 12.00
				Maturity (months)	299 - 356
				Delinquencies	0.25 - 5.00
				Costs to service	$ 60 - $ 160
				Costs to service - delinquent	$ 100 - $ 1,000
Derivative financial instruments (mortgage	11,214		Sales cash flows	Expected closing ratio	65% - 95%
interest rate lock commitments)				Expected delivery price	98.86 bps - 108.93 bps

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 March 31, 2015 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)	March 31, 2015
Weighted average CPR	13.60		%
Impact on fair value of 10% adverse change	$	(9,979	)
Impact on fair value of 20% adverse change	(19,144		)
Weighted average discount rate	9.42		%
Impact on fair value of 10% adverse change	$	(7,330	)
Impact on fair value of 20% adverse change	(14,193		)
Weighted average delinquency rate	0.98		%
Impact on fair value of 10% adverse change	$	(1,310	)
Impact on fair value of 20% adverse change	(1,977		)
Weighted average costs to service	$	70
Impact on fair value of 10% adverse change	(3,142		)
Impact on fair value of 20% adverse change	(6,284		)

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):

	Three Months Ended
	March 31,
	2015			2014			2015			2014		2015		2014
(in thousands)	Investment Securities						Mortgage Servicing Rights					Derivatives
Balance, beginning of period	$	973		$	5,856		$	235,402		$	—	$	5,074	$	—
Purchases	—			—			85			—		—		—
Originations	—			—			16,560			—		—		—
Other comprehensive income	—			(179		)	—			—		—		—
Included in earnings	—			—			(32,793		)	—		6,140		—
Principal payments	(38		)	(178		)	—			—		—		—
Balance, ending of period	$	935		$	5,499		$	219,254		$	—	$	11,214	$	—

Assets measured at fair value on a nonrecurring basis

Assets measured at fair value on a nonrecurring basis as of March 31, 2015 and December 31, 2014 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)
March 31, 2015
Financial assets:
Impaired loans	$	61,757	$	—	$	—	$	61,757
Non-financial assets:
Foreclosed assets	39,889		—		—		39,889
December 31, 2014
Financial assets:
Impaired loans	$	61,717	$	—	$	—	$	61,717
Non-financial assets:
Foreclosed assets	38,619		—		—		38,619

Estimated fair values of financial instruments

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

	March 31, 2015
	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	$	248,840	$	248,840	$	248,840	$	—	$	—
Interest earning deposits with banks	52,212		52,212		52,212		—		—
Investment securities available for sale	1,589,424		1,589,424		10,751		1,577,738		935
Investment securities held to maturity	1,000,859		1,045,205		—		1,045,205		—
Non-marketable securities - FHLB and FRB stock	87,677		87,677		—		—		87,677
Loans held for sale	686,838		686,838		—		686,838		—
Loans, net	8,807,916		8,870,489		—		20,829		8,849,660
Accrued interest receivable	46,532		46,532		46,532		—		—
Derivative financial instruments	68,283		68,283		6,427		50,642		11,214
Financial Liabilities:
Noninterest bearing deposits	$	4,290,499	$	4,290,499	$	4,290,499	$	—	$	—
Interest bearing deposits	6,729,002		6,734,854		—		—		6,734,854
Short-term borrowings	615,231		615,216		—		—		615,216
Long-term borrowings	85,477		88,299		—		—		88,299
Junior subordinated notes issued to capital trusts	185,874		123,059		—		—		123,059
Accrued interest payable	3,005		3,005		3,005		—		—
Derivative financial instruments	47,162		47,162		8,235		38,927		—

	December 31, 2014
	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	$	256,804	$	256,804	$	256,804	$	—	$	—
Interest earning deposits with banks	55,277		55,277		55,277		—		—
Investment securities available for sale	1,654,752		1,654,752		10,597		1,643,182		973
Investment securities held to maturity	993,380		1,035,061		—		1,035,061		—
Non-marketable securities - FHLB and FRB stock	75,569		75,569		—		—		75,569
Loans held for sale	737,209		737,209		—		737,209		—
Loans, net	8,973,191		8,956,494		—		—		8,956,494
Accrued interest receivable	49,065		49,065		49,065		—		—
Derivative financial instruments	46,388		46,388		1,607		39,707		5,074
Financial Liabilities:
Non-interest bearing deposits	$	4,118,256	$	4,118,256	$	4,118,256	$	—	$	—
Interest bearing deposits	6,872,686		6,877,349		—		—		6,877,349
Short-term borrowings	931,415		931,415		—		—		931,415
Long-term borrowings	82,916		86,025		—		—		86,025
Junior subordinated notes issued to capital trusts	185,778		122,408		—		—		122,408
Accrued interest payable	3,709		3,709		3,709		—		—
Derivative financial instruments	40,499		40,499		7,209		33,290		—

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Operating Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Operating Segments

Operating Segments

The Company's operations 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 and deposit gathering 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 dependent on changes in its 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 customers and depositors.  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 offered through the Company's leasing subsidiaries, LaSalle Systems Leasing, Inc., Celtic Leasing Corp. and Cole Taylor Equipment Finance, LLC. The leasing subsidiaries invest directly in equipment that we lease (referred to as direct finance, leveraged or operating leases) to "Fortune 1000," large middle-market companies and healthcare 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 subsidiaries also specialize in selling third party equipment maintenance contracts to large companies.

The mortgage banking segment originates mortgage loans for sale to investors and for the Company's portfolio through its retail and broker channels. This segment also services residential mortgage loans for various investors and for loans owned by the Company. The mortgage banking segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of customers.

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 March 31, 2015
Net interest income	$	104,126	$	3,015	$	6,254		$	113,395
Provision for credit losses	4,974		—		—			4,974
Non-interest income	31,517		25,203		24,548			81,268
Non-interest expense (1)	95,334		13,656		30,930			139,920
Income tax expense	9,962		5,747		(51		)	15,658
Net income	$	25,373	$	8,815	$	(77	)	$	34,111
Total assets	$	12,246,659	$	937,903	$	1,143,748		$	14,328,310
Three months ended March 31, 2014
Net interest income	$	66,324	$	1,004	$	—		$	67,328
Provision for credit losses	1,150		—		—			1,150
Non-interest income	23,701		12,852		59			36,612
Non-interest expense	68,334		7,713		—			76,047
Income tax expense	4,483		2,291		—			6,774
Net income	$	16,058	$	3,852	$	59		$	19,969
Total assets	$	8,968,195	$	469,108	$	—		$	9,437,303

⁽¹⁾  Includes merger related expenses of $8.1 million and $680 thousand in the banking segment for the three months ended March 31, 2015 and 2014, respectively.

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Commitments and Contingencies (Details 2) (States and political subdivisions, State of Illinois)	3 Months Ended
	Mar. 31, 2015
States and political subdivisions | State of Illinois
Concentrations of credit risk
Percentage of investments issued by states and political subdivisions that were within the state of Illinois	25.00%

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.14	$ 0.12

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Securities held to maturity, at amortized cost, fair value	$ 1,045,205	$ 1,035,061
Preferred stock, par or stated value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, dividend rate, percentage	8.00%	8.00%
Preferred stock, shares issued	4,000,000	4,000,000
Preferred stock, shares outstanding	4,000,000	4,000,000
Preferred stock, liquidation preference per share (in dollars per share)	$ 25	$ 25
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	75,355,257	75,067,482
Treasury stock, shares	233,181	296,715

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Short-Term Borrowings

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings were as follows as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31, 2015				December 31, 2014
	Weighted Average Cost		Amount		Weighted Average Cost		Amount
Customer repurchase agreements	0.16	%	$	240,478	0.21	%	$	219,824
Federal Home Loan Bank advances	0.11		300,000		0.13		700,000
Federal funds purchased	0.33		74,753		0.14		11,591
	0.16	%	$	615,231	0.15	%	$	931,415

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 had Federal Home Loan Bank fixed rate advances with a maturity date less than one year of $300.0 million and $700.0 million at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015, the interest rate on the advance outstanding on that date had a rate of 0.11% with a maturity of December 11, 2015. The Company has investment securities available for sale and loans pledged as collateral on this FHLB advance. See Note 5. Investment Securities and Note 6. Loans of the notes to the consolidated financial statements.

On March 9, 2012, the Company entered into a $35.0 million unsecured line of credit with a correspondent bank. Interest is payable at a rate of one month LIBOR + 1.85%. As of March 31, 2015, no amount was outstanding and the line of credit is scheduled to mature on September 7, 2015.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 06, 2015
Document and Entity Information
Entity Registrant Name	MB FINANCIAL INC /MD
Entity Central Index Key	0001139812
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
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		75,123,683
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

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Long-term Borrowings

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Long-term Borrowings

Long-term Borrowings

The Company had Federal Home Loan Bank advances with remaining contractual maturities greater than one year of $4.1 million at March 31, 2015 and $4.2 million at December 31, 2014. As of March 31, 2015, the advances had fixed terms with effective interest rates, net of discounts, ranging from 3.23% to 5.87% and maturities ranging from April 2021 to April 2035. The Company has investment securities available for sale and loans pledged as collateral on these FHLB advances. See Note 5. Investment Securities and Note 6. Loans of the notes to the consolidated financial statements.

The Company had notes payable to banks totaling $41.2 million and $38.5 million at March 31, 2015 and December 31, 2014, respectively, which as of March 31, 2015, were accruing interest at rates ranging from 2.25% to 12.00%.  Lease investments includes equipment with an amortized cost of $50.8 million and $48.8 million at March 31, 2015 and December 31, 2014, respectively, that is pledged as collateral on these notes.

The Company had a $40.0 million10-year structured repurchase agreement as of March 31, 2015 and December 31, 2014, which bears interest at a fixed rate borrowing of 4.75% and expires in 2016.

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Operating Segments (Details) (USD $)	3 Months Ended
	Mar. 31, 2015 segment		Mar. 31, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Reportable Segments Number	3
Net interest income	$ 113,395,000		$ 67,328,000
Provision for credit losses	4,974,000		1,150,000
Non-interest income	81,268,000		36,612,000
Non-interest expense	139,920,000	[1]	76,047,000
Income tax expense	15,658,000		6,774,000
Net income	34,111,000		19,969,000
Total assets	14,328,310,000		9,437,303,000	14,602,099,000
Taylor Capital Group, Inc.
Segment Reporting Information [Line Items]
Pretax merger related costs	8,100,000		680,000
Banking
Segment Reporting Information [Line Items]
Net interest income	104,126,000		66,324,000
Provision for credit losses	4,974,000		1,150,000
Non-interest income	31,517,000		23,701,000
Non-interest expense	95,334,000	[1]	68,334,000
Income tax expense	9,962,000		4,483,000
Net income	25,373,000		16,058,000
Total assets	12,246,659,000		8,968,195,000
Leasing
Segment Reporting Information [Line Items]
Net interest income	3,015,000		1,004,000
Provision for credit losses	0		0
Non-interest income	25,203,000		12,852,000
Non-interest expense	13,656,000	[1]	7,713,000
Income tax expense	5,747,000		2,291,000
Net income	8,815,000		3,852,000
Total assets	937,903,000		469,108,000
Mortgage Banking
Segment Reporting Information [Line Items]
Net interest income	6,254,000		0
Provision for credit losses	0		0
Non-interest income	24,548,000		59,000
Non-interest expense	30,930,000	[1]	0
Income tax expense	(51,000)		0
Net income	(77,000)		59,000
Total assets	$ 1,143,748,000		$ 0

[1] Includes merger related expenses of $8.1 million and $680 thousand in the banking segment for the three months ended March 31, 2015 and 2014, respectively.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Loans:
Taxable	$ 98,846		$ 53,946
Nontaxable	2,174		2,298
Investment securities:
Taxable	9,934		8,146
Nontaxable	9,113		8,067
Federal funds sold	0		5
Other interest earning accounts	62		113
Total interest income	120,129		72,575
Interest expense:
Deposits	4,645		3,769
Short-term borrowings	277		100
Long-term borrowings and junior subordinated notes	1,812		1,378
Total interest expense	6,734		5,247
Net interest income	113,395		67,328
Provision for credit losses	4,974		1,150
Net interest income after provision for credit losses	108,421		66,178
Non-interest income:
Lease financing, net	25,080		13,196
Mortgage banking revenue	24,544		59
Commercial deposit and treasury management fees	11,038		7,144
Trust and asset management fees	5,714		5,207
Card fees	3,927		2,701
Capital markets and international banking fees	1,928		978
Consumer and other deposit service fees	3,083		2,935
Brokerage fees	1,678		1,325
Loan service fees	1,485		965
Increase in cash surrender value of life insurance	839		827
Net (loss) gain on investment securities	(460)		317
Net gain on sale of assets	4		7
Other operating income	2,408		951
Total non-interest income	81,268		36,612
Non-interest expenses:
Salaries and employee benefits	84,786		44,377
Occupancy and equipment	12,940		9,592
Computer services and telecommunication	8,904		5,084
Advertising and marketing	2,446		2,081
Professional and legal	2,670		1,779
Other intangibles amortization	1,518		1,240
Branch exit and facilities impairment charges	7,391		0
Net loss recognized on other real estate owned and other related	896		583
Prepayment fees on interest bearing liabilities	85		0
Other operating expenses	18,284		11,311
Total non-interest expenses	139,920	[1]	76,047
Income before income taxes	49,769		26,743
Income tax expense	15,658		6,774
Net income	34,111		19,969
Dividends on preferred shares	2,000		0
Net income available to common stockholders	$ 32,111		$ 19,969
Common share data:
Basic earnings per common share	$ 0.43		$ 0.37
Diluted earnings per common share	$ 0.43		$ 0.36
Weighted average common shares outstanding for basic earnings per common share	74,567,104		54,639,951
Diluted weighted average common shares outstanding for diluted earnings per common share	75,164,716		55,265,188

[1] Includes merger related expenses of $8.1 million and $680 thousand in the banking segment for the three months ended March 31, 2015 and 2014, respectively.

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Business Combinations

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Business Combination

Business Combination

On August 18, 2014, the Company acquired Taylor Capital Group, Inc. (“Taylor Capital”), a bank holding company and the parent company of Cole Taylor Bank, a commercial bank headquartered in Chicago, through the merger (the “Merger”) of Taylor Capital with and into the Company, followed immediately by the merger of Cole Taylor Bank with and into MB Financial Bank. This transaction solidifies the Company's market position in Chicago and diversifies its revenue streams. At the effective time of the Merger (the “Effective Time”), each share of the common stock of Taylor Capital and each share of nonvoting convertible preferred stock of Taylor Capital converted into the right to receive (1) 0.64318 of a share of the common stock of the Company, and (2) $4.08 in cash. All “in-the-money” Taylor Capital stock options and warrants outstanding immediately prior to the Effective Time were canceled in exchange for the right to receive a cash payment as provided in the merger agreement, as were the outstanding unvested restricted stock awards of Taylor Capital; however, the cash consideration payable for such restricted stock awards will remain subject to vesting or other lapse restrictions. Each share of Taylor Capital’s perpetual non-cumulative preferred stock, Series A, converted into the right to receive one share of the Company’s perpetual non-cumulative preferred stock, Series A.

The Company issued approximately 19.6 million shares of common stock and paid approximately $129.5 million in cash in the Merger. For the “in-the-money” Taylor Capital stock options and warrants, the Company paid in the aggregate approximately $4.4 million in cash. For the outstanding unvested Taylor Capital restricted stock awards, the Company will pay or has paid in the aggregate up to approximately $3.7 million in cash, as and to the extent such awards vest. The $129.5 million cash consideration includes payments for the Taylor Capital stock options, warrants and restricted stock awards.

This business combination was accounted for under the acquisition method of accounting.  Accordingly, the results of operations of the acquired company have been included in the Company’s results of operations since the date of acquisition.  Under this method of accounting, the assets acquired, liabilities assumed and consideration paid are recorded at their estimated fair values.  The excess cost over fair value of net assets acquired is recorded as goodwill.  As the consideration paid for Taylor Capital exceeded the net assets acquired, goodwill of $288.2 million was recorded on the acquisition and was allocated to the banking segment. Goodwill recorded in the transaction, which reflects the increased Chicago market share and related synergies expected from the combined operations, is not tax deductible. The amounts recognized for the business combination in the financial statements as of March 31, 2015 have been determined to be final.

Estimated fair values of the assets acquired and liabilities assumed in the Taylor Capital transaction, as of the closing date of the transaction were as follows (in thousands):

	August 18,
	2014
ASSETS
Cash and cash equivalents	$	154,684
Investment securities available for sale	826,691
Investment securities held to maturity	22,599
Non-marketable securities - FRB and FHLB Stock	50,620
Loans held for sale	670,671
Loans	3,532,211
Leases investments	11,885
Premises and equipment	19,701
Goodwill	288,152
Core deposit intangible	20,079
Mortgage servicing rights	224,453
Other real estate owned	4,720
Other assets	130,478
Total assets	$	5,956,944
LIABILITIES
Deposits	$	3,953,213
Short-term borrowings	1,035,800
Junior subordinated notes issued to capital trusts	80,843
Accrued expenses and other liabilities	123,028
Total liabilities	$	5,192,884
Series A preferred stock at $28.82 per share at August 15, 2014	$	115,280
Total identifiable net assets less Series A preferred stock	$	648,780
Consideration excluding Series A preferred stock:
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued)	$	519,270
Cash paid	129,510
Total fair value of consideration, excluding Series A preferred stock	$	648,780

The Company's Series A preferred stock was valued based upon the closing price of Taylor Capital's Series A preferred stock on August 15, 2014, the last trading day before the Merger date.

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 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 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 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 (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor Capital loans which will largely offset the accretion from the pass rated loans.

In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans ("PCI loans"), 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 when there is a reasonable expectation about the amount and timing of such cash flows.

The following table presents the acquired loans as of the acquisition date (in thousands):

	PCI Loans			Non-PCI Loans
Contractually required principal and interest payments	$	244,650		$	3,707,463
Contractually required interest payments not expected to be collected due to estimated prepayments	—			(302,329		)
Nonaccretable difference	(34,219		)	—
Cash flows expected to be collected	210,431			3,405,134
Accretable difference	(5,626		)	(77,728		)
Fair value of acquired loans	$	204,805		$	3,327,406

The Company recorded $8.1 million and $680 thousand in pre-tax merger related expenses for the three months ended March 31, 2015 and 2014, respectively. These merger related expenses primarily relate to retention and severance compensation costs, professional and legal fees and branch exit and facilities impairment charges. The data processing systems were converted in September 2014.

The following table provides the unaudited pro forma information for the results of operations for the three months ended March 31, 2014, as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of operations including the impact of certain purchase accounting adjustments including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. Net income in the table below includes merger related expenses.

	Pro Forma
	Three Months Ended
	March 31,
	2014
(in thousands)
Total revenues (net interest income plus non-interest income)	$	185,028
Net income	34,752

Revenues and earnings of the acquired company since the acquisition date have not been disclosed as it is not practicable as Taylor Capital was merged into the Company and separate financial information is not readily available.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2015

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
	March 31,
	2015		2014
Distributed earnings allocated to common stock	$	10,610	$	6,666
Undistributed earnings	23,501		13,303
Net income	34,111		19,969
Less: preferred stock dividends	2,000		—
Net income available to common stockholders	32,111		19,969
Less: earnings allocated to participating securities	1		—
Earnings allocated to common stockholders	$	32,110	$	19,969
Weighted average shares outstanding for basic earnings per common share	74,567,104		54,639,951
Dilutive effect of equity awards	597,612		625,237
Weighted average shares outstanding for diluted earnings per common share	75,164,716		55,265,188
Basic earnings per common share	$	0.43	$	0.37
Diluted earnings per common share	0.43		0.36

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2015

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 our 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 March 31, 2015 was approximately $3 thousand, and the net amount payable as of December 31, 2014 was approximately $1.1 million.  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 March 31, 2015, the Company’s credit exposure relating to interest rate swaps was approximately $33.7 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 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 $187 thousand at March 31, 2015.  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 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 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 March 31, 2015 and December 31, 2014 (in thousands):

	Asset Derivatives								Liability Derivatives
	March 31, 2015				December 31, 2014				March 31, 2015					December 31, 2014
	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)	$	—	$	—	$	—	$	—	$	187	$	(14	)	$	197	$	(15	)
Stand-alone derivative instruments: (2)
Interest rate swap contracts	2,072,809		50,633		1,509,930		37,039		1,268,604		(34,942		)	2,001,787		(30,761		)
Interest rate options contracts	617,089		982		55,830		283		67,089		(260		)	55,830		(283		)
Foreign exchange contracts	49,017		4,470		27,402		2,276		46,904		(4,181		)	27,002		(2,109		)
Spot foreign exchange contracts	210		6		512		5		462		(46		)	304		(18		)
Mortgage related derivatives	955,583		12,192		871,446		6,785		1,271,000		(7,719		)	879,841		(7,313		)
Total non-hedging derivative instruments	3,694,708		68,283		2,465,120		46,388		2,654,059		(47,148		)	2,964,764		(40,484		)
Total	$	3,694,708	$	68,283	$	2,465,120	$	46,388	$	2,654,246	$	(47,162	)	$	2,964,961	$	(40,499	)

⁽¹⁾ Hedged fixed-rate commercial real estate loans

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

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

	Three Months Ended
	March 31,
	2015			2014
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts	$	1		$	—
Stand-alone derivative instruments:
Interest rate swap contracts	11,125			9
Interest rate options contracts	723			—
Foreign exchange contracts	122			61
Spot foreign exchange contracts	(28		)	8
Mortgage related derivatives	908			3
Total non-hedging derivative instruments	12,850			81
Total	$	12,851		$	81

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 March 31, 2015 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 swaps, caps and floors	$	17,959	$	—	$	17,959	$	34,795	$	—	$	34,795
Foreign currency forward contracts	2,307		—		2,307		2,050		—		2,050
Mortgage related derivatives	1,394		—		1,394		8,134		—		8,134
Total derivatives	21,660		—		21,660		44,979		—		44,979
Repurchase agreements	—		—		—		240,478		—		240,478
Total	$	21,660	$	—	$	21,660	$	285,457	$	—	$	285,457

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	19	$	(19	)	$	—	$	—	$	10,604	$	(19	)	$	(10,585	)	$	—
Counterparty B	27		(27		)	—		—		4,962		(27		)	(4,935		)	—
Counterparty C	9,792		(9,792		)	—		—		13,218		(9,792		)	(3,426		)	—
Other counterparties	11,822		(6,917		)	—		4,905		16,195		(6,918		)	(7,745		)	1,532
Total derivatives	21,660		(16,755		)	—		4,905		44,979		(16,756		)	(26,691		)	1,532
Repurchase agreements	—		—			—		—		240,478		—			(240,478		)	—
Total	$	21,660	$	(16,755	)	$	—	$	4,905	$	285,457	$	(16,756	)	$	(267,169	)	$	1,532

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2014 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 swaps, caps and floors	$	10,727	$	—	$	10,727	$	29,916	$	—	$	29,916
Foreign currency forward contracts	1,525		—		1,525		709		—		709
Mortgage related derivatives	1,700		—		1,700		7,302		—		7,302
Total derivatives	13,952		—		13,952		37,927		—		37,927
Repurchase agreements	—		—		—		219,824		—		219,824
Total	$	13,952	$	—	$	13,952	$	257,751	$	—	$	257,751

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	13	$	(13	)	$	—	$	—	$	9,556	$	(13	)	$	(9,543	)	$	—
Counterparty B	145		(145		)	—		—		3,736		(145		)	(3,591		)	—
Counterparty C	6,123		(6,123		)	—		—		10,335		(6,122		)	(4,213		)	—
Other counterparties	7,671		(3,920		)	—		3,751		14,300		(3,920		)	(8,663		)	1,717
Total derivatives	13,952		(10,201		)	—		3,751		37,927		(10,200		)	(26,010		)	1,717
Repurchase agreements	—		—			—		—		219,824		—			(219,824		)	—
Total	$	13,952	$	(10,201	)	$	—	$	3,751	$	257,751	$	(10,200	)	$	(245,834	)	$	1,717

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Junior Subordinated Notes Issued to Capital Trusts

3 Months Ended

Mar. 31, 2015

JUNIOR SUBORDINATED NOTES ISSUED TO CAPITAL TRUSTS

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 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 March 31, 2015 (in thousands):

	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

(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 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 discount of $7.4 million.

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.

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Goodwill and Intangibles

3 Months Ended

Mar. 31, 2015

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. No impairment losses were recognized during the three months endedMarch 31, 2015 or 2014.   The carrying amount of goodwill was $711.5 million at March 31, 2015 and December 31, 2014.

The Company has other intangible assets consisting of core deposit and client relationship intangibles that had a remaining weighted average amortization period of approximately five years as of March 31, 2015.

The following table presents the changes in the carrying amount of core deposit and client relationship intangibles, gross carrying amount, accumulated amortization, and net book value as of March 31, 2015 (in thousands):

	Three Months Ended
	March 31, 2015
Balance at beginning of period	$	38,006
Amortization expense	(1,518		)
Balance at end of period	$	36,488
Gross carrying amount	$	80,371
Accumulated amortization	(43,883		)
Net book value	$	36,488

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

Year ending December 31,	Amount
2015	$	4,445
2016	5,157
2017	4,637
2018	4,221
2019	2,743
Thereafter	15,285
	$	36,488

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Goodwill and Intangibles (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Changes in the carrying amount of core deposit and client relationship intangibles
Balance at beginning of period	$ 38,006
Amortization expense	(1,518)	(1,240)
Balance at end of period	36,488
Gross carrying amount	80,371
Accumulated amortization	(43,883)
Net book value	$ 36,488

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Investment Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Amortized cost and fair value of investment securities were as follows as of the dates indicated (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015
Available for Sale
U.S. Government sponsored agencies and enterprises	$	64,411	$	1,659	$	—		$	66,070
States and political subdivisions	381,704		21,953		(29		)	403,628
Residential mortgage-backed securities	666,904		12,383		(812		)	678,475
Commercial mortgage-backed securities	174,823		3,816		(181		)	178,458
Corporate bonds	250,543		3,462		(1,963		)	252,042
Equity securities	10,587		164		—			10,751
Total Available for Sale	1,548,972		43,437		(2,985		)	1,589,424
Held to Maturity
States and political subdivisions	764,931		32,136		(284		)	796,783
Residential mortgage-backed securities	235,928		12,494		—			248,422
Total Held to Maturity	1,000,859		44,630		(284		)	1,045,205
Total	$	2,549,831	$	88,067	$	(3,269	)	$	2,634,629
December 31, 2014
Available for Sale
U.S. Government sponsored agencies and enterprises	$	64,612	$	1,281	$	(20	)	$	65,873
States and political subdivisions	390,076		20,846		(68		)	410,854
Residential mortgage-backed securities	713,413		8,977		(1,827		)	720,563
Commercial mortgage-backed securities	186,110		1,772		(220		)	187,662
Corporate bonds	259,526		2,428		(2,751		)	259,203
Equity securities	10,531		66		—			10,597
Total Available for Sale	1,624,268		35,370		(4,886		)	1,654,752
Held to Maturity
States and political subdivisions	752,558		30,089		(382		)	782,265
Residential mortgage-backed securities	240,822		11,974		—			252,796
Total Held to Maturity	993,380		42,063		(382		)	1,035,061
Total	$	2,617,648	$	77,433	$	(5,268	)	$	2,689,813

The Company has no direct exposure to the State of Illinois, but approximately 25% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of March 31, 2015. Approximately 93% of such securities were general obligation issues as of March 31, 2015.

Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at March 31, 2015 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
States and political subdivisions	$	4,761	$	(10	)	$	2,253	$	(19	)	$	7,014	$	(29	)
Residential mortgage-backed securities	62,437		(278		)	43,263		(534		)	105,700		(812		)
Commercial mortgage-backed securities	16,752		(181		)	—		—			16,752		(181		)
Corporate bonds	26,242		(459		)	9,675		(1,504		)	35,917		(1,963		)
Total Available for Sale	110,192		(928		)	55,191		(2,057		)	165,383		(2,985		)
Held to Maturity
States and political subdivisions	36,619		(137		)	6,240		(147		)	42,859		(284		)
Total	$	146,811	$	(1,065	)	$	61,431	$	(2,204	)	$	208,242	$	(3,269	)

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, 2014 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	$	9,644	$	(20	)	$	—	$	—		$	9,644	$	(20	)
States and political subdivisions	7,784		(21		)	3,558		(47		)	11,342		(68		)
Residential mortgage-backed securities	235,818		(1,336		)	29,373		(491		)	265,191		(1,827		)
Commercial mortgage-backed securities	89,509		(220		)	—		—			89,509		(220		)
Corporate bonds	62,693		(1,159		)	9,675		(1,592		)	72,368		(2,751		)
Total Available for Sale	405,448		(2,756		)	42,606		(2,130		)	448,054		(4,886		)
Held to Maturity
States and political subdivisions	28,786		(130		)	14,238		(252		)	43,024		(382		)
Total	$	434,234	$	(2,886	)	$	56,844	$	(2,382	)	$	491,078	$	(5,268	)

The total number of security positions in the investment portfolio in an unrealized loss position at March 31, 2015 was 97 compared to 168 at December 31, 2014. 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 March 31, 2015, 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 March 31, 2015, 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 (losses) gains recognized on investment securities available for sale were as follows (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Realized gains	$	759		$	318
Realized losses	(1,219		)	(1		)
Net (losses) gains	$	(460	)	$	317

The amortized cost and fair value of investment securities as of March 31, 2015 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	$	17,722	$	17,770
Due after one year through five years	291,975		294,881
Due after five years through ten years	42,645		44,133
Due after ten years	344,316		364,956
Equity securities	10,587		10,751
Residential and commercial mortgage-backed securities	841,727		856,933
	1,548,972		1,589,424
Held to maturity:
Due in one year or less	52,102		52,249
Due after one year through five years	222,670		224,797
Due after five years through ten years	99,975		104,546
Due after ten years	390,184		415,191
Residential mortgage-backed securities	235,928		248,422
	1,000,859		1,045,205
Total	$	2,549,831	$	2,634,629

Investment securities with a carrying amount of $1.5 billion at March 31, 2015 and December 31, 2014, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $908.6 million and $980.4 million were required to be pledged at March 31, 2015 and December 31, 2014, respectively. Of those pledged, the Company had investment securities pledged as collateral for advances from the Federal Home Loan Bank of $200.9 million and $226.9 million at March 31, 2015 and December 31, 2014, respectively.

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Loans

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans

Loans

Loans consist of the following at (in thousands):

	March 31, 2015		December 31, 2014
Commercial loans	$	3,258,652	$	3,245,206
Commercial loans collateralized by assignment of lease payments	1,628,031		1,692,258
Commercial real estate	2,525,640		2,544,867
Residential real estate	505,558		503,287
Construction real estate	184,105		247,068
Indirect vehicle	273,105		268,840
Home equity	241,078		251,909
Other consumer loans	77,645		78,137
Total loans, excluding purchased credit-impaired and covered loans	8,693,814		8,831,572
Purchased credit-impaired and covered loans	227,514		251,645
Total loans	$	8,921,328	$	9,083,217

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 and asset-based loans, credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by MB Financial Bank.

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 Company's Board of Directors on a regular basis.

Commercial Loans. Commercial credit is extended primarily 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 and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave 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 or Standard & Poor's Rating Services or, in the event the related lessee has not received any such rating, where the related lessee would be viewed under the underwriting policies of the Company as an investment grade company. 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.

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 cash flow loans and the repayment of these loans is largely dependent on the successful operation 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 controlled 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, they 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 primarily residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans (motorcycle, powersports, recreational and marine 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 Company relationship with the borrower. Indirect loan and credit card underwriting involves the use of risk-based pricing in the underwriting process.

A collateral pledge agreement exists whereby at all times, the Company must keep on hand, free of all other pledges, liens, and encumbrances, first mortgage loans and home equity loans with unpaid principal balances aggregating no less than 133% for first mortgage loans and 250% for home equity loans of the outstanding advances from the Federal Home Loan Bank.  As of March 31, 2015 and December 31, 2014, the Company had $3.5 billion and $2.0 billion, respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $1.3 billion were required to be pledged at March 31, 2015 and December 31, 2014, respectively.

The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2015 and December 31, 2014 (in thousands):

	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total Past Due		Total
March 31, 2015
Commercial	$	3,220,398	$	27,393	$	1,899	$	8,962	$	38,254	$	3,258,652
Commercial collateralized by assignment of lease payments	1,611,508		12,350		2,062		2,111		16,523		1,628,031
Commercial real estate
Healthcare	344,393		—		—		—		—		344,393
Industrial	334,667		—		—		2,309		2,309		336,976
Multifamily	372,358		2,823		—		1,336		4,159		376,517
Retail	436,710		240		1,817		2,054		4,111		440,821
Office	243,266		1,235		23		2,048		3,306		246,572
Other	776,851		1,156		281		2,073		3,510		780,361
Residential real estate	492,557		5,060		951		6,990		13,001		505,558
Construction real estate	183,768		—		—		337		337		184,105
Indirect vehicle	270,474		1,933		473		225		2,631		273,105
Home equity	232,851		2,551		268		5,408		8,227		241,078
Other consumer	77,546		76		23		—		99		77,645
Total loans, excluding purchased credit-impaired and covered loans	8,597,347		54,817		7,797		33,853		96,467		8,693,814
Purchased credit-impaired and covered loans	134,140		8,291		1,685		83,398		93,374		227,514
Total loans	$	8,731,487	$	63,108	$	9,482	$	117,251	$	189,841	$	8,921,328
Non-performing loan aging	$	45,674	$	3,018	$	911	$	33,675	$	37,604	$	83,278
December 31, 2014
Commercial	$	3,231,571	$	8,222	$	—	$	5,413	$	13,635	$	3,245,206
Commercial collateralized by assignment of lease payments	1,679,991		2,025		6,095		4,147		12,267		1,692,258
Commercial real estate
Healthcare	342,984		—		—		—		—		342,984
Industrial	333,907		944		—		3,182		4,126		338,033
Multifamily	417,504		1,377		—		1,517		2,894		420,398
Retail	432,718		2,481		652		2,325		5,458		438,176
Office	244,166		—		—		2,127		2,127		246,293
Other	754,031		307		2,421		2,224		4,952		758,983
Residential real estate	485,492		8,038		2,319		7,438		17,795		503,287
Construction real estate	246,731		—		—		337		337		247,068
Indirect vehicle	265,296		2,516		702		326		3,544		268,840
Home equity	242,756		2,717		1,039		5,397		9,153		251,909
Other consumer	78,106		16		12		3		31		78,137
Total loans, excluding purchased credit-impaired and covered loans	8,755,253		28,643		13,240		34,436		76,319		8,831,572
Purchased credit-impaired and covered loans	158,215		4,432		585		88,413		93,430		251,645
Total loans	$	8,913,468	$	33,075	$	13,825	$	122,849	$	169,749	$	9,083,217
Non-performing loan aging	$	46,149	$	5,764	$	1,099	$	34,075	$	40,938	$	87,087

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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
			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	$	13,897	$	75	$	14,088	$	—
Commercial collateralized by assignment of lease payments	3,602		741		2,404		3,566
Commercial real estate:
Healthcare	—		—		—		—
Industrial	4,816		—		6,371		—
Multifamily	5,008		—		5,333		—
Office	3,268		—		3,644		464
Retail	2,898		—		2,986		—
Other	13,655		—		13,541		324
Residential real estate	16,925		891		17,311		—
Construction real estate	337		—		337		—
Indirect vehicle	1,473		—		1,542		—
Home equity	15,672		—		15,171		—
Other consumer	20		—		5		—
Total	$	81,571	$	1,707	$	82,733	$	4,354

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. Risk ratings are updated any time the situation warrants and at least annually. Loans listed as not rated are included in groups of homogeneous loans with similar risk and loss characteristics.

The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015
Commercial	$	3,029,893	$	155,032	$	73,727	$	—	$	3,258,652
Commercial collateralized by assignment of lease payments	1,614,968		935		12,128		—		1,628,031
Commercial real estate
Healthcare	340,036		4,357		—		—		344,393
Industrial	314,666		13,200		9,110		—		336,976
Multifamily	368,675		1,287		6,555		—		376,517
Retail	426,760		4,165		9,896		—		440,821
Office	225,451		13,544		7,577		—		246,572
Other	727,643		17,426		35,292		—		780,361
Construction real estate	183,244		524		337		—		184,105
Total	$	7,231,336	$	210,470	$	154,622	$	—	$	7,596,428
December 31, 2014
Commercial	$	3,036,069	$	178,984	$	30,153	$	—	$	3,245,206
Commercial collateralized by assignment of lease payments	1,680,736		6,853		4,669		—		1,692,258
Commercial real estate
Healthcare	338,622		4,362		—		—		342,984
Industrial	314,225		8,817		14,991		—		338,033
Multifamily	412,824		920		6,654		—		420,398
Retail	423,842		2,740		11,594		—		438,176
Office	229,947		8,524		7,822		—		246,293
Other	708,447		22,013		28,523		—		758,983
Construction real estate	246,204		527		337		—		247,068
Total	$	7,390,916	$	233,740	$	104,743	$	—	$	7,729,399

Approximately $46.9 million and $49.1 million of the substandard and doubtful loans were non-performing as of March 31, 2015 and December 31, 2014, respectively.

For residential real estate, home equity, indirect vehicle and other consumer loan classes, which are not rated, the Company 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 and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	Performing		Non-performing		Total
March 31, 2015
Residential real estate	$	487,742	$	17,816	$	505,558
Indirect vehicle	271,631		1,474		273,105
Home equity	225,407		15,671		241,078
Other consumer	77,625		20		77,645
Total	$	1,062,405	$	34,981	$	1,097,386
December 31, 2014
Residential real estate	$	485,976	$	17,311	$	503,287
Indirect vehicle	267,297		1,543		268,840
Home equity	236,739		15,170		251,909
Other consumer	78,132		5		78,137
Total	$	1,068,144	$	34,029	$	1,102,173

The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired and covered loans, as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015
									Three Months 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	$	9,686	$	8,925	$	761	$	—	$	10,640	$	—
Commercial collateralized by assignment of lease payments	1,508		1,508		—		—		1,626		29
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	5,846		4,670		1,176		—		4,962		—
Multifamily	1,698		1,698		—		—		1,792		7
Retail	2,019		807		1,212		—		825		—
Office	1,608		1,031		577		—		1,609		—
Other	1,490		1,465		25		—		1,527		—
Residential real estate	970		970		—		—		—		—
Construction real estate	—		—		—		—		—		—
Indirect vehicle	—		—		—		—
Home equity	1,025		1,025		—		—		—		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	6,464		6,464		—		2,051		6,760		—
Commercial collateralized by assignment of lease payments	2,145		2,145		—		1,534		1,331		14
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	146		146		—		37		49		—
Multifamily	5,723		4,749		974		664		5,926		8
Retail	8,889		7,493		1,396		626		7,710		—
Office	2,369		1,866		503		484		2,274		—
Other	12,247		12,227		20		100		13,207		—
Residential real estate	14,153		14,153		—		3,045		14,407		—
Construction real estate	2,708		337		2,371		162		431		—
Indirect vehicle	164		164		—		14		372		—
Home equity	26,954		26,954		—		2,348		27,213		—
Other consumer	—		—		—		—		—		—
Total	$	107,812	$	98,797	$	9,015	$	11,065	$	102,661	$	58

	December 31, 2014
	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	$	9,752	$	8,992	$	760	$	—	$	10,324	$	—
Commercial collateralized by assignment of lease payments	2,316		2,316		—		—		2,569		121
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	9,115		5,858		3,257		—		7,870		—
Multifamily	1,733		1,733		—		—		1,928		52
Retail	2,025		813		1,212		—		3,465		—
Office	—		—		—		—		1,127		—
Other	1,479		1,465		14		—		5,249		—
Residential real estate	1,941		1,941		—		—		2,740		—
Construction real estate	—		—		—		—		34		—
Indirect vehicle	—		—		—		—		—		—
Home equity	577		577		—		—		762		—
Other consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial	7,987		7,987		—		2,395		14,227		—
Commercial collateralized by assignment of lease payments	715		715		—		105		1,515		91
Commercial real estate:
Healthcare	—		—		—		—		—		—
Industrial	517		513		4		130		4,982		—
Multifamily	5,680		4,709		971		996		6,354		131
Retail	9,264		7,897		1,367		720		8,547		—
Office	4,528		2,986		1,542		545		2,833		—
Other	12,612		12,527		85		136		11,022		12
Residential real estate	14,234		14,234		—		3,126		14,632		—
Construction real estate	2,707		337		2,370		162		455		—
Indirect vehicle	227		227		—		14		358		—
Home equity	25,927		25,705		222		2,153		25,672		—
Other consumer	—		—		—		—		—		—
Total	$	113,336	$	101,532	$	11,804	$	10,482	$	126,665	$	407

Impaired loans included accruing restructured loans of $16.9 million and $15.6 million that have been modified and are performing in accordance with those modified terms as of March 31, 2015 and December 31, 2014, respectively.  In addition, impaired loans included $25.5 million and $25.8 million of non-performing, restructured loans as of March 31, 2015 and December 31, 2014, 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. Programs that we offer to residential real estate borrowers include the Home Affordable Refinance Program (“HARP”), a restructuring program similar to the Home Affordable Modification Program (“HAMP”) for first mortgage borrowers, the Second Lien Modification Program (“2MP”) and similar programs for home equity borrowers in keeping with the restructuring techniques discussed above.

Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. As of March 31, 2015 and December 31, 2014, there was one A/B structure with a recorded investment of $1.0 million, which is included above as an accruing restructured loan. 

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 loss 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 March 31, 2015 (dollars in thousands):

	March 31, 2015
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Home equity	6	$	2,346	$	2,346	$	—
Total	6	$	2,346	$	2,346	$	—
Non-Performing:
Indirect vehicle	3	$	9	$	9	$	—
Home equity	5	798		798		122
Total	8	$	807	$	807	$	122

The following table presents loans that were restructured during the three months ended March 31, 2014 (dollars in thousands):

	March 31, 2014
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Charge-offs and Specific Reserves
Performing:
Indirect vehicle	1	$	5	$	5	$	—
Home equity	3	1,039		1,039		—
Total	4	$	1,044	$	1,044	$	—
Non-Performing:
Residential real estate	4	$	1,439	$	1,439	$	—
Indirect vehicle	18	108		108		—
Home equity	4	532		532		—
Total	26	$	2,079	$	2,079	$	—

Of the troubled debt restructurings entered into during the past twelve months, $224 thousand subsequently defaulted during the three months endedMarch 31, 2015.  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 three months endedMarch 31, 2015 (in thousands):

	Performing			Non-performing
Beginning balance	$	15,603		$	25,771
Additions	2,346			807
Charge-offs	—			(203		)
Principal payments, net	(111		)	(619		)
Removals	(1,185		)	(22		)
Transfer from/to performing	221			—
Transfer from/to non-performing	—			(221		)
Ending balance	$	16,874		$	25,513

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 three months endedMarch 31, 2015 (in thousands):

	March 31, 2015
	Extended
	Maturity,		Delay in
	Amortization		Payments or
	and Reduction		Reduction of
	of Interest Rate		Interest Rate		Total
Indirect vehicle	$	—	$	9	$	9
Home equity	791		2,353		3,144
Total	$	791	$	2,362	$	3,153

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 March 31, 2015 and 2014 (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
March 31, 2015
Allowance for credit losses:
Three Months Ended
Beginning balance	$	29,571		$	9,962		$	41,826	$	6,646		$	8,918		$	1,687	$	9,456		$	1,960	$	4,031		$	114,057
Charge-offs	569			—			2,034		579			3			874		444			424		—			4,927
Recoveries	242			749			1,375		72			2			475		101			69		—			3,085
Provision	3,583			(886		)	791		621			556			427		(333		)	469		(254		)	4,974
Ending balance	$	32,827		$	9,825		$	41,958	$	6,760		$	9,473		$	1,715	$	8,780		$	2,074	$	3,777		$	117,189
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,051		$	1,534		$	1,911	$	3,045		$	162		$	14	$	2,348		$	—	$	1,333		$	12,398
Collectively evaluated for impairment	30,320			8,291			39,435		3,715			9,305			1,701		6,432			2,074		2,444			103,717
Acquired and accounted for under ASC 310-30 (1)	456			—			612		—			6			—		—			—		—			1,074
Total ending allowance balance	$	32,827		$	9,825		$	41,958	$	6,760		$	9,473		$	1,715	$	8,780		$	2,074	$	3,777		$	117,189
Loans:
Individually evaluated for impairment	$	15,389		$	3,653		$	36,152	$	15,123		$	337		$	164	$	27,979		$	—	$	—		$	98,797
Collectively evaluated for impairment	3,243,263			1,624,378			2,489,488		490,435			183,768			272,941		213,099			77,645		—			8,595,017
Acquired and accounted for under ASC 310-30 (1)	84,564			—			75,008		19,265			28,801			—		75			19,801		—			227,514
Total ending loans balance	$	3,343,216		$	1,628,031		$	2,600,648	$	524,823		$	212,906		$	273,105	$	241,153		$	97,446	$	—		$	8,921,328
March 31, 2014
Allowance for credit losses:
Three Months Ended
Beginning balance	$	23,461		$	9,159		$	51,628	$	8,872		$	6,856		$	1,662	$	8,478		$	1,630	$	1,716		$	113,462
Charge-offs	90			—			7,156		265			56			920		619			495		—			9,601
Recoveries	1,628			—			485		519			99			442		133			78		—			3,384
Provision	(1,061		)	(101		)	2,583		(1,039		)	(415		)	500		405			351		(73		)	1,150
Ending balance	$	23,938		$	9,058		$	47,540	$	8,087		$	6,484		$	1,684	$	8,397		$	1,564	$	1,643		$	108,395
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,160		$	174		$	4,151	$	3,076		$	195		$	25	$	1,395		$	—	$	665		$	15,841
Collectively evaluated for impairment	17,312			8,884			41,707		5,011			6,229			1,659		7,002			1,564		978			90,346
Acquired and accounted for under ASC 310-30 (1)	466			—			1,682		—			60			—		—			—		—			2,208
Total ending allowance balance	$	23,938		$	9,058		$	47,540	$	8,087		$	6,484		$	1,684	$	8,397		$	1,564	$	1,643		$	108,395
Loans:
Individually evaluated for impairment	$	41,191		$	4,235		$	57,960	$	18,151		$	782		$	183	$	24,810		$	—	$	—		$	147,312
Collectively evaluated for impairment	1,208,639			1,468,386			1,565,549		287,790			132,215			265,861		233,310			64,812		—			5,226,562
Acquired and accounted for under ASC 310-30 (1)	30,976			—			95,506		5,121			36,752			—		110			25,976		—			194,441
Total ending loans balance	$	1,280,806		$	1,472,621		$	1,719,015	$	311,062		$	169,749		$	266,044	$	258,230		$	90,788	$	—		$	5,568,315

⁽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 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 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 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 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 (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor loans which will largely offset the accretion from the pass rated loans.

In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans, 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 when there is a reasonable expectation about the amount and timing of such cash flows.

Substantially all of the loans acquired in transactions with the FDIC 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 three months endedMarch 31, 2015, there was a negative provision for credit losses of $429 thousand and net recoveries of $220 thousand, in relation to 16 pools of purchased loans with a total carrying amount of $71.7 million as of March 31, 2015. There was $1.1 million and $1.3 million in allowance for loan losses related to these purchased loans at March 31, 2015 and December 31, 2014, 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 months endedMarch 31, 2015 and 2014 (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Balance at beginning of period	$	7,434		$	2,337
Accretion	(1,930		)	(550		)
Other	863			574
Balance at end of period	$	6,367		$	2,361

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.

When cash flow estimates are adjusted downward for a particular loan pool, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows.

When cash flow estimates are adjusted upward for a particular loan pool, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan pool.

When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows.

When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed.

In both scenarios, the clawback liability (the amount the FDIC requires the Company to pay back if certain thresholds are met) will increase or decrease accordingly.

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 type are as follows (in thousands):

March 31, 2015	Purchased Credit-Impaired Loans		Purchased Non-Credit-Impaired Loans		Total
Covered loans:
Commercial related (1)	$	139	$	4	$	143
Commercial	837		273		1,110
Commercial real estate	19,570		13,669		33,239
Construction real estate	—		1,269		1,269
Other	1,134		19,794		20,928
Total covered loans	$	21,680	$	35,009	$	56,689
Estimated (payable) receivable amount from the FDIC under the loss-share agreement (2)	$	482	$	4,125	$	4,607
Non-covered loans:
Commercial related (1)	$	7,033	$	11,495	$	18,528
Commercial loans	76,279		1,285,210		1,361,489
Commercial loans collateralized by assignment of lease payments	—		114,829		114,829
Commercial real estate	41,769		840,863		882,632
Construction real estate	27,532		89,200		116,732
Other	18,212		198,740		216,952
Total non-covered loans	$	170,825	$	2,540,337	$	2,711,162

⁽¹⁾  Commercial related loans include commercial, commercial real estate and construction real estate for the InBank, Heritage and Benchmark FDIC-assisted transactions.

⁽²⁾  Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $1.3 million in amounts due to the FDIC related to covered other real estate owned.

Outstanding balances on purchased loans from the FDIC were $86.5 million and $95.1 million as of March 31, 2015 and December 31, 2014, respectively.  The related carrying amount on loans purchased from the FDIC was $81.6 million and $91.4 million as of March 31, 2015 and December 31, 2014, respectively.

Effective April 1, 2014, the losses on commercial related loans (commercial, commercial real estate and construction real estate) acquired in connection with the Heritage FDIC-assisted transaction ceased being covered under the loss-share agreement for that transaction. The carrying amount of those loans was $3.0 million as of March 31, 2015. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to April 1, 2014 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreement) through March 31, 2017. The losses on consumer related loans acquired in connection with the Heritage FDIC-assisted transaction will continue to be covered under the loss-share agreement through March 31, 2019.

The losses on commercial related loans acquired in connection with the Benchmark FDIC-assisted transaction ceased to be covered under the loss-share agreement for that transaction effective January 1, 2015. The carrying amount of those loans was $2.8 million as of March 31, 2015. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to January 1, 2015 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreements) through December 31, 2017. The losses on consumer related loans acquired in connection with the Benchmark FDIC-assisted transaction will continue to be covered under the loss-share agreements through December 31, 2019.

Effective July 1, 2015, the losses on commercial related loans acquired in connection with Broadway and New Century FDIC-assisted transactions will cease to be covered under the loss-share agreements for those transactions. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to July 1, 2015 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreements) through June 30, 2018. The losses on consumer related loans acquired in connection with the Broadway and New Century FDIC-assisted transactions will continue to be covered under the loss-share agreements through June 30, 2020.

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Deposits

3 Months Ended

Mar. 31, 2015

Deposits [Abstract]

Deposits

Deposits

The composition of deposits was as follows (in thousands):

	March 31,		December 31,
	2015		2014
Demand deposit accounts, noninterest bearing	$	4,290,499	$	4,118,256
NOW and money market accounts	4,002,818		3,913,765
Savings accounts	969,560		940,345
Certificates of deposit, $250,000 or more	716,701		838,928
Other certificates of deposit	1,039,923		1,179,648
Total	$	11,019,501	$	10,990,942

Certificates of deposit of $250,000 or more included $395.3 million and $485.3 million of brokered deposits at March 31, 2015 and December 31, 2014, respectively.  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 - Additional Information (Details) (USD $)	0 Months Ended
	Mar. 09, 2012	Mar. 31, 2015	Dec. 31, 2014
Short-term borrowings
Fixed interest rate Federal Home Loan Bank advances		$ 300,000,000	$ 700,000,000
Effective Interest Rate of Amounts Due within One Year		0.11%
Line of credit
Short-term borrowings
Unsecured line of credit	$ 35,000,000
Description of interest rate basis	one month LIBOR
LIBOR | Line of credit
Short-term borrowings
Debt instrument, basis spread on variable rate	1.85%

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Junior Subordinated Notes Issued to Capital Trusts (Details) (USD $)	3 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Outstanding junior subordinated notes
Principal balance	185,874,000		$ 185,778,000
Junior Subordinated Notes | Maximum
Outstanding junior subordinated notes
Period for deferment of payment of interest on notes (in years)	5 years
Coal City Capital Trust I | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	25,774,000
Debt instrument, basis spread on variable rate	1.80%
Description of annual interest rate basis	3-mo LIBOR
MB Financial Capital Trust II | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	36,083,000
Debt instrument, basis spread on variable rate	1.40%
Description of annual interest rate basis	3-mo LIBOR
MB Financial Capital Trust III | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	10,310,000
Debt instrument, basis spread on variable rate	1.50%
Description of annual interest rate basis	3-mo LIBOR
MB Financial Capital Trust IV | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	20,619,000
Debt instrument, basis spread on variable rate	1.52%
Description of annual interest rate basis	3-mo LIBOR
MB Financial Capital Trust V | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	30,928,000
Debt instrument, basis spread on variable rate	1.30%
Description of annual interest rate basis	3-mo LIBOR
MB Financial Capital Trust VI | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	23,196,000
Debt instrument, basis spread on variable rate	1.30%
Description of annual interest rate basis	3-mo LIBOR
FOBB Statutory Trust III | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	5,155,000	[1]
Debt instrument, basis spread on variable rate	2.80%	[1]
Description of annual interest rate basis	3-mo LIBOR	[1]
TAYC Capital Trust II
Outstanding junior subordinated notes
Debt Instrument, Purchase Accounting Adjustments Discount	7,400,000
TAYC Capital Trust II | Junior Subordinated Notes
Outstanding junior subordinated notes
Principal balance	41,238,000	[2]
Debt instrument, basis spread on variable rate	2.68%	[2]
Description of annual interest rate basis	3-mo LIBOR	[2]
Trust Preferred Securities | Coal City Capital Trust I
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	1.80%
Description of annual interest rate basis	3-mo LIBOR
Investment Owned, Balance, Principal Amount	25,000,000
Trust Preferred Securities | MB Financial Capital Trust II
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	1.40%
Description of annual interest rate basis	3-mo LIBOR
Investment Owned, Balance, Principal Amount	35,000,000
Trust Preferred Securities | MB Financial Capital Trust III
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	1.50%
Description of annual interest rate basis	3-mo LIBOR
Investment Owned, Balance, Principal Amount	10,000,000
Trust Preferred Securities | MB Financial Capital Trust IV
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	1.52%
Description of annual interest rate basis	3-mo LIBOR
Investment Owned, Balance, Principal Amount	20,000,000
Trust Preferred Securities | MB Financial Capital Trust V
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	1.30%
Description of annual interest rate basis	3-mo LIBOR
Investment Owned, Balance, Principal Amount	30,000,000
Trust Preferred Securities | MB Financial Capital Trust VI
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	1.30%
Description of annual interest rate basis	3-mo LIBOR
Investment Owned, Balance, Principal Amount	22,500,000
Trust Preferred Securities | FOBB Statutory Trust III
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	2.80%	[1]
Description of annual interest rate basis	3-mo LIBOR	[1]
Investment Owned, Balance, Principal Amount	5,000,000	[1]
Trust Preferred Securities | TAYC Capital Trust II
Outstanding junior subordinated notes
Debt instrument, basis spread on variable rate	2.68%	[2]
Description of annual interest rate basis	3-mo LIBOR	[2]
Investment Owned, Balance, Principal Amount	40,000,000	[2]

[1] 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.

[2] TAYC Capital Trust II was established by 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 discount of $7.4 million.

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Short-Term Borrowings (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Short-term borrowings
Weighted Average Cost	0.16%	0.15%
Amount	$ 615,231	$ 931,415
Customer repurchase agreements
Short-term borrowings
Weighted Average Cost	0.16%	0.21%
Amount	240,478	219,824
Federal Home Loan Bank advances
Short-term borrowings
Weighted Average Cost	0.11%	0.13%
Amount	300,000	700,000
Federal funds purchased
Short-term borrowings
Weighted Average Cost	0.33%	0.14%
Amount	$ 74,753	$ 11,591

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Junior Subordinated Notes Issued to Capital Trusts (Tables)

3 Months Ended

Mar. 31, 2015

JUNIOR SUBORDINATED NOTES ISSUED TO CAPITAL TRUSTS

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 March 31, 2015 (in thousands):

	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

(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 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 discount of $7.4 million.

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Loans (Details 4) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loans
Total loans, excluding purchased credit impaired and covered loans	$ 8,693,814	$ 8,831,572
Residential real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	505,558	503,287
Indirect vehicle
Loans
Total loans, excluding purchased credit impaired and covered loans	273,105	268,840
Home equity lines
Loans
Total loans, excluding purchased credit impaired and covered loans	241,078	251,909
Other consumer
Loans
Total loans, excluding purchased credit impaired and covered loans	77,645	78,137
Other loans
Loans
Total loans, excluding purchased credit impaired and covered loans	1,097,386	1,102,173
Performing | Residential real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	487,742	485,976
Performing | Indirect vehicle
Loans
Total loans, excluding purchased credit impaired and covered loans	271,631	267,297
Performing | Home equity lines
Loans
Total loans, excluding purchased credit impaired and covered loans	225,407	236,739
Performing | Other consumer
Loans
Total loans, excluding purchased credit impaired and covered loans	77,625	78,132
Performing | Other loans
Loans
Total loans, excluding purchased credit impaired and covered loans	1,062,405	1,068,144
Non-performing | Residential real estate
Loans
Total loans, excluding purchased credit impaired and covered loans	17,816	17,311
Non-performing | Indirect vehicle
Loans
Total loans, excluding purchased credit impaired and covered loans	1,474	1,543
Non-performing | Home equity lines
Loans
Total loans, excluding purchased credit impaired and covered loans	15,671	15,170
Non-performing | Other consumer
Loans
Total loans, excluding purchased credit impaired and covered loans	20	5
Non-performing | Other loans
Loans
Total loans, excluding purchased credit impaired and covered loans	$ 34,981	$ 34,029

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

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 a 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.

Loans Held for Sale. Residential real estate 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.

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.

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 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.

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.

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. We also obtain dealer quotations for these derivatives for comparative purposes to assess the reasonableness of the model valuations. In addition, we use 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. We also offer 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 which 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 following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, 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)
March 31, 2015
Financial assets
Securities available for sale:
U.S Government sponsored agencies and enterprises	$	66,070	$	—	$	66,070	$	—
States and political subdivisions	403,628		—		403,165		463
Residential mortgage-backed securities	678,475		—		678,003		472
Commercial mortgage-backed securities	178,458		—		178,458		—
Corporate bonds	252,042		—		252,042		—
Equity securities	10,751		10,751		—		—
Loans held for sale	686,838		—		686,838		—
Loans	20,829		—		20,829		—
Mortgage servicing rights	219,254		—		—		219,254
Assets held in trust for deferred compensation	18,087		18,087		—		—
Derivative financial instruments	68,283		6,427		50,642		11,214
Financial liabilities
Other liabilities (1)	17,633		17,633		—		—
Derivative financial instruments	47,162		8,235		38,927		—
December 31, 2014
Financial assets
Securities available for sale:
U.S. Government sponsored agencies and enterprises	$	65,873	$	—	$	65,873	$	—
States and political subdivisions	410,854		—		410,391		463
Residential mortgage-backed securities	720,563		—		720,053		510
Commercial mortgage-backed securities	187,662		—		187,662		—
Corporate bonds	259,203		—		259,203		—
Equity securities	10,597		10,597		—		—
Loans held for sale	737,209		—		737,209		—
Mortgage servicing rights	235,402		—		—		235,402
Assets held in trust for deferred compensation	16,829		16,829		—		—
Derivative financial instruments	46,388		1,607		39,707		5,074
Financial liabilities
Other liabilities (1)	16,483		16,483		—		—
Derivative financial instruments	40,499		7,209		33,290		—

⁽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 at
	March 31, 2015		Valuation Technique	Unobservable Input	Range
	(in thousands)
States and political subdivisions	$	463	Discounted cash flows	Credit assumption	45% Loss
Residential mortgage-backed securities	472		Discounted cash flows	Constant pre-payment rates (CPR)	1% - 3%
Mortgage servicing rights	219,254		Discounted cash flows	CPR	10.4% - 14.2%
				Discount rate	9.25 - 12.00
				Maturity (months)	299 - 356
				Delinquencies	0.25 - 5.00
				Costs to service	$ 60 - $ 160
				Costs to service - delinquent	$ 100 - $ 1,000
Derivative financial instruments (mortgage	11,214		Sales cash flows	Expected closing ratio	65% - 95%
interest rate lock commitments)				Expected delivery price	98.86 bps - 108.93 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 March 31, 2015 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)	March 31, 2015
Weighted average CPR	13.60		%
Impact on fair value of 10% adverse change	$	(9,979	)
Impact on fair value of 20% adverse change	(19,144		)
Weighted average discount rate	9.42		%
Impact on fair value of 10% adverse change	$	(7,330	)
Impact on fair value of 20% adverse change	(14,193		)
Weighted average delinquency rate	0.98		%
Impact on fair value of 10% adverse change	$	(1,310	)
Impact on fair value of 20% adverse change	(1,977		)
Weighted average costs to service	$	70
Impact on fair value of 10% adverse change	(3,142		)
Impact on fair value of 20% adverse change	(6,284		)

The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months endedMarch 31, 2015. 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):

	Three Months Ended
	March 31,
	2015			2014			2015			2014		2015		2014
(in thousands)	Investment Securities						Mortgage Servicing Rights					Derivatives
Balance, beginning of period	$	973		$	5,856		$	235,402		$	—	$	5,074	$	—
Purchases	—			—			85			—		—		—
Originations	—			—			16,560			—		—		—
Other comprehensive income	—			(179		)	—			—		—		—
Included in earnings	—			—			(32,793		)	—		6,140		—
Principal payments	(38		)	(178		)	—			—		—		—
Balance, ending of period	$	935		$	5,499		$	219,254		$	—	$	11,214	$	—

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 (90% at March 31, 2015), 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 March 31, 2015 and December 31, 2014 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)
March 31, 2015
Financial assets:
Impaired loans	$	61,757	$	—	$	—	$	61,757
Non-financial assets:
Foreclosed assets	39,889		—		—		39,889
December 31, 2014
Financial assets:
Impaired loans	$	61,717	$	—	$	—	$	61,717
Non-financial assets:
Foreclosed assets	38,619		—		—		38,619

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 at		Valuation	Unobservable
	March 31, 2015		Technique	Input	Range
	(in thousands)
Impaired loans	$	61,757	Appraisal of collateral	Appraisal adjustments - sales costs	5% - 10%
Foreclosed assets	39,889		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 following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments:

Cash and due from banks, interest earning deposits with banks and federal funds sold: 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 a 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. 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.

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):

	March 31, 2015
	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	$	248,840	$	248,840	$	248,840	$	—	$	—
Interest earning deposits with banks	52,212		52,212		52,212		—		—
Investment securities available for sale	1,589,424		1,589,424		10,751		1,577,738		935
Investment securities held to maturity	1,000,859		1,045,205		—		1,045,205		—
Non-marketable securities - FHLB and FRB stock	87,677		87,677		—		—		87,677
Loans held for sale	686,838		686,838		—		686,838		—
Loans, net	8,807,916		8,870,489		—		20,829		8,849,660
Accrued interest receivable	46,532		46,532		46,532		—		—
Derivative financial instruments	68,283		68,283		6,427		50,642		11,214
Financial Liabilities:
Noninterest bearing deposits	$	4,290,499	$	4,290,499	$	4,290,499	$	—	$	—
Interest bearing deposits	6,729,002		6,734,854		—		—		6,734,854
Short-term borrowings	615,231		615,216		—		—		615,216
Long-term borrowings	85,477		88,299		—		—		88,299
Junior subordinated notes issued to capital trusts	185,874		123,059		—		—		123,059
Accrued interest payable	3,005		3,005		3,005		—		—
Derivative financial instruments	47,162		47,162		8,235		38,927		—

	December 31, 2014
	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	$	256,804	$	256,804	$	256,804	$	—	$	—
Interest earning deposits with banks	55,277		55,277		55,277		—		—
Investment securities available for sale	1,654,752		1,654,752		10,597		1,643,182		973
Investment securities held to maturity	993,380		1,035,061		—		1,035,061		—
Non-marketable securities - FHLB and FRB stock	75,569		75,569		—		—		75,569
Loans held for sale	737,209		737,209		—		737,209		—
Loans, net	8,973,191		8,956,494		—		—		8,956,494
Accrued interest receivable	49,065		49,065		49,065		—		—
Derivative financial instruments	46,388		46,388		1,607		39,707		5,074
Financial Liabilities:
Non-interest bearing deposits	$	4,118,256	$	4,118,256	$	4,118,256	$	—	$	—
Interest bearing deposits	6,872,686		6,877,349		—		—		6,877,349
Short-term borrowings	931,415		931,415		—		—		931,415
Long-term borrowings	82,916		86,025		—		—		86,025
Junior subordinated notes issued to capital trusts	185,778		122,408		—		—		122,408
Accrued interest payable	3,709		3,709		3,709		—		—
Derivative financial instruments	40,499		40,499		7,209		33,290		—

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New Authoritative Accounting Guidance (Policies)

3 Months Ended

Mar. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Authoritative Accounting Pronouncements

New Authoritative Accounting Guidance

ASC Topic 310 “Receivables.” New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical

possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosures. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to require an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have a material impact on the Company's statements of operations or financial condition.

ASC Topic 323 “Investments - Equity Method and Joint Ventures.” New authoritative accounting guidance under ASC Topic 323, “Investments - Equity Method and Joint Ventures” amended prior guidance to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operation as a component of income tax expense. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topics 205 “Presentation of Financial Statements” and 360 “Property, Plant, and Equipment.” New authoritative accounting guidance under ASC Topic 205, “Presentation of Financial Statements” and ASC Topic 360 “Property, Plant, and Equipment” amended prior guidance to change the requirements for reporting discontinued operations. The disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new authoritative guidance also requires additional disclosures about discontinued operations. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topic 860 “Transfers and Servicing.” New authoritative accounting guidance under ASC Topic 860, “Transfers and Servicing” amended prior guidance to change the accounting for repurchase-to-maturity transactions to secured borrowing accounting and to require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The new authoritative guidance also requires disclosures for a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an 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” amended prior guidance to require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topic 225 “Income Statement - Extraordinary and Unusual Items.” New authoritative accounting guidance under ASC Topic 225, “Income Statement - Extraordinary and Unusual Items” amended prior guidance to eliminate the concept of extraordinary items. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 810 “Consolidation.” New authoritative accounting guidance under ASC Topic 810, “Consolidation” amended prior guidance over the consolidation of certain legal entities. The new authoritative guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with variable interest entities and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those for registered money market funds. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition.

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Loans (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	$ 8,693,814	$ 8,831,572
Total loans	8,921,328	9,083,217	5,568,315
Period past due of recorded investment in loans (in days)	90 days
Commercial loans
Contractual aging of the recorded investment in loans
Current	3,220,398	3,231,571
30-59 days, past due	27,393	8,222
60-89 days, past due	1,899	0
Loans past due, 90 days or more	8,962	5,413
Total, past due	38,254	13,635
Total loans, excluding covered loans	3,258,652	3,245,206
Total loans	3,343,216		1,280,806
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	13,897	14,088
Loans past due 90 days or more and still accruing	75	0
Commercial loans collateralized by assignment of lease payments
Contractual aging of the recorded investment in loans
Current	1,611,508	1,679,991
30-59 days, past due	12,350	2,025
60-89 days, past due	2,062	6,095
Loans past due, 90 days or more	2,111	4,147
Total, past due	16,523	12,267
Total loans, excluding covered loans	1,628,031	1,692,258
Total loans	1,628,031		1,472,621
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	3,602	2,404
Loans past due 90 days or more and still accruing	741	3,566
Commercial real estate
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	2,525,640	2,544,867
Total loans	2,600,648		1,719,015
Healthcare
Contractual aging of the recorded investment in loans
Current	344,393	342,984
30-59 days, past due	0	0
60-89 days, past due	0	0
Loans past due, 90 days or more	0	0
Total, past due	0	0
Total loans, excluding covered loans	344,393	342,984
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	0	0
Loans past due 90 days or more and still accruing	0	0
Industrial
Contractual aging of the recorded investment in loans
Current	334,667	333,907
30-59 days, past due	0	944
60-89 days, past due	0	0
Loans past due, 90 days or more	2,309	3,182
Total, past due	2,309	4,126
Total loans, excluding covered loans	336,976	338,033
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	4,816	6,371
Loans past due 90 days or more and still accruing	0	0
Multifamily
Contractual aging of the recorded investment in loans
Current	372,358	417,504
30-59 days, past due	2,823	1,377
60-89 days, past due	0	0
Loans past due, 90 days or more	1,336	1,517
Total, past due	4,159	2,894
Total loans, excluding covered loans	376,517	420,398
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	5,008	5,333
Loans past due 90 days or more and still accruing	0	0
Retail
Contractual aging of the recorded investment in loans
Current	436,710	432,718
30-59 days, past due	240	2,481
60-89 days, past due	1,817	652
Loans past due, 90 days or more	2,054	2,325
Total, past due	4,111	5,458
Total loans, excluding covered loans	440,821	438,176
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	2,898	2,986
Loans past due 90 days or more and still accruing	0	0
Office
Contractual aging of the recorded investment in loans
Current	243,266	244,166
30-59 days, past due	1,235	0
60-89 days, past due	23	0
Loans past due, 90 days or more	2,048	2,127
Total, past due	3,306	2,127
Total loans, excluding covered loans	246,572	246,293
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	3,268	3,644
Loans past due 90 days or more and still accruing	0	464
Other
Contractual aging of the recorded investment in loans
Current	776,851	754,031
30-59 days, past due	1,156	307
60-89 days, past due	281	2,421
Loans past due, 90 days or more	2,073	2,224
Total, past due	3,510	4,952
Total loans, excluding covered loans	780,361	758,983
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	13,655	13,541
Loans past due 90 days or more and still accruing	0	324
Residential real estate
Contractual aging of the recorded investment in loans
Current	492,557	485,492
30-59 days, past due	5,060	8,038
60-89 days, past due	951	2,319
Loans past due, 90 days or more	6,990	7,438
Total, past due	13,001	17,795
Total loans, excluding covered loans	505,558	503,287
Total loans	524,823		311,062
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	16,925	17,311
Loans past due 90 days or more and still accruing	891	0
Construction real estate
Contractual aging of the recorded investment in loans
Current	183,768	246,731
30-59 days, past due	0	0
60-89 days, past due	0	0
Loans past due, 90 days or more	337	337
Total, past due	337	337
Total loans, excluding covered loans	184,105	247,068
Total loans	212,906		169,749
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	337	337
Loans past due 90 days or more and still accruing	0	0
Indirect vehicle
Contractual aging of the recorded investment in loans
Current	270,474	265,296
30-59 days, past due	1,933	2,516
60-89 days, past due	473	702
Loans past due, 90 days or more	225	326
Total, past due	2,631	3,544
Total loans, excluding covered loans	273,105	268,840
Total loans	273,105		266,044
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	1,473	1,542
Loans past due 90 days or more and still accruing	0	0
Home equity lines
Contractual aging of the recorded investment in loans
Current	232,851	242,756
30-59 days, past due	2,551	2,717
60-89 days, past due	268	1,039
Loans past due, 90 days or more	5,408	5,397
Total, past due	8,227	9,153
Total loans, excluding covered loans	241,078	251,909
Total loans	241,153		258,230
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	15,672	15,171
Loans past due 90 days or more and still accruing	0	0
Other consumer
Contractual aging of the recorded investment in loans
Current	77,546	78,106
30-59 days, past due	76	16
60-89 days, past due	23	12
Loans past due, 90 days or more	0	3
Total, past due	99	31
Total loans, excluding covered loans	77,645	78,137
Total loans	97,446		90,788
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	20	5
Loans past due 90 days or more and still accruing	0	0
Gross loans, excluding covered loans
Contractual aging of the recorded investment in loans
Current	8,597,347	8,755,253
30-59 days, past due	54,817	28,643
60-89 days, past due	7,797	13,240
Loans past due, 90 days or more	33,853	34,436
Total, past due	96,467	76,319
Total loans, excluding covered loans	8,693,814	8,831,572
Purchased credit-impaired including covered loans
Contractual aging of the recorded investment in loans
Current	134,140	158,215
30-59 days, past due	8,291	4,432
60-89 days, past due	1,685	585
Loans past due, 90 days or more	83,398	88,413
Total, past due	93,374	93,430
Total loans	227,514	251,645
Loans
Contractual aging of the recorded investment in loans
Current	8,731,487	8,913,468
30-59 days, past due	63,108	33,075
60-89 days, past due	9,482	13,825
Loans past due, 90 days or more	117,251	122,849
Total, past due	189,841	169,749
Total loans	8,921,328	9,083,217
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing
Non-accrual	81,571	82,733
Loans past due 90 days or more and still accruing	1,707	4,354
Non-performing
Contractual aging of the recorded investment in loans
Current	45,674	46,149
30-59 days, past due	3,018	5,764
60-89 days, past due	911	1,099
Loans past due, 90 days or more	33,675	34,075
Total, past due	37,604	40,938
Total loans	83,278	87,087
Non-performing | Residential real estate
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	17,816	17,311
Non-performing | Indirect vehicle
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	1,474	1,543
Non-performing | Home equity lines
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	15,671	15,170
Non-performing | Other consumer
Contractual aging of the recorded investment in loans
Total loans, excluding covered loans	$ 20	$ 5

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Business Combinations (Details) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended
	Aug. 18, 2014	Mar. 31, 2015	Mar. 31, 2014	Aug. 15, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill		$ 711,521,000			$ 711,521,000
Taylor Capital Group, Inc.
Business Acquisition [Line Items]
Amount called by each right	4.08
Cash paid	129,510,000
Cash paid, net, stock options and warrants	4,400,000
Goodwill	288,152,000
Pretax merger related costs		8,100,000	680,000
Taylor Capital Group, Inc. | Restricted stock
Business Acquisition [Line Items]
Cash paid	$ 3,700,000
Taylor Capital Group, Inc. | Common Stock
Business Acquisition [Line Items]
Number of securities called by each right (in shares)	0.64318
Number of shares issued	19,600,000			19,602,482

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 34,111	$ 19,969
Unrealized holding gains on investment securities, net of reclassification adjustments	9,404	4,946
Reclassification adjustment for amortization of unrealized gains on investment securities transferred to held to maturity from available for sale	(402)	(1,376)
Reclassification adjustments for losses (gains) included in net income	460	(317)
Other comprehensive income, before tax	9,462	3,253
Income tax expense related to items of other comprehensive income	(3,717)	(1,274)
Other comprehensive income, net of tax	5,745	1,979
Comprehensive income	$ 39,856	$ 21,948

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New Authoritative Accounting Guidance

3 Months Ended

Mar. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Authoritative Accounting Guidance

New Authoritative Accounting Guidance

ASC Topic 310 “Receivables.” New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical

possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosures. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to require an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have a material impact on the Company's statements of operations or financial condition.

ASC Topic 323 “Investments - Equity Method and Joint Ventures.” New authoritative accounting guidance under ASC Topic 323, “Investments - Equity Method and Joint Ventures” amended prior guidance to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operation as a component of income tax expense. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topics 205 “Presentation of Financial Statements” and 360 “Property, Plant, and Equipment.” New authoritative accounting guidance under ASC Topic 205, “Presentation of Financial Statements” and ASC Topic 360 “Property, Plant, and Equipment” amended prior guidance to change the requirements for reporting discontinued operations. The disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new authoritative guidance also requires additional disclosures about discontinued operations. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topic 860 “Transfers and Servicing.” New authoritative accounting guidance under ASC Topic 860, “Transfers and Servicing” amended prior guidance to change the accounting for repurchase-to-maturity transactions to secured borrowing accounting and to require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The new authoritative guidance also requires disclosures for a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an 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” amended prior guidance to require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition.

ASC Topic 225 “Income Statement - Extraordinary and Unusual Items.” New authoritative accounting guidance under ASC Topic 225, “Income Statement - Extraordinary and Unusual Items” amended prior guidance to eliminate the concept of extraordinary items. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition.

ASC Topic 810 “Consolidation.” New authoritative accounting guidance under ASC Topic 810, “Consolidation” amended prior guidance over the consolidation of certain legal entities. The new authoritative guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with variable interest entities and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those for registered money market funds. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition.

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Loans (Details 11) (USD $)	Mar. 31, 2015		Dec. 31, 2014
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	$ 56,689,000
Estimated receivable amount from the FDIC under the loss-share agreement	4,607,000	[1]
Non covered loans	2,711,162,000
Outstanding balances on purchased loans from the FDIC	86,500,000		95,100,000
Carrying amount on loans purchased from the FDIC	81,600,000		91,400,000
Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	21,680,000
Estimated receivable amount from the FDIC under the loss-share agreement	482,000	[1]
Non covered loans	170,825,000
Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	35,009,000
Estimated receivable amount from the FDIC under the loss-share agreement	4,125,000	[1]
Non covered loans	2,540,337,000
Commercial related
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	143,000	[2]
Non covered loans	18,528,000
Commercial related | Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	139,000	[2]
Non covered loans	7,033,000
Reimbursable Amount Covered Other Real Estate Owned	1,300,000
Commercial related | Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	4,000	[2]
Non covered loans	11,495,000
Commercial loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	1,110,000
Non covered loans	1,361,489,000
Commercial loans | Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	837,000
Non covered loans	76,279,000
Commercial loans | Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	273,000
Non covered loans	1,285,210,000
Commercial loans collateralized by assignment of lease payments
Purchased credit-impaired loans and non-credit-impaired loans
Non covered loans	114,829,000
Commercial loans collateralized by assignment of lease payments | Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Non covered loans	0
Commercial loans collateralized by assignment of lease payments | Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Non covered loans	114,829,000
Commercial real estate
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	33,239,000
Non covered loans	882,632,000
Commercial real estate | Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	19,570,000
Non covered loans	41,769,000
Commercial real estate | Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	13,669,000
Non covered loans	840,863,000
Construction real estate
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	1,269,000
Non covered loans	116,732,000
Construction real estate | Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	0
Non covered loans	27,532,000
Construction real estate | Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	1,269,000
Non covered loans	89,200,000
Other
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	20,928,000
Non covered loans	216,952,000
Other | Purchased Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	1,134,000
Non covered loans	18,212,000
Other | Purchased Non-Impaired Loans
Purchased credit-impaired loans and non-credit-impaired loans
Covered Loans	19,794,000
Non covered loans	198,740,000
Heritage | Commercial loans, commercial real estate receivable and construction loans
Purchased credit-impaired loans and non-credit-impaired loans
Loans not covered under the loss share agreement	3,000,000	[2]
Benchmark | Commercial loans, commercial real estate receivable and construction loans
Purchased credit-impaired loans and non-credit-impaired loans
Loans not covered under the loss share agreement	$ 2,800,000	[2]

[1] Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $1.3 million in amounts due to the FDIC related to covered other real estate owned.

[2] Commercial related loans include commercial, commercial real estate and construction real estate for the InBank, Heritage and Benchmark FDIC-assisted transactions.

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	$ 1,589,424		$ 1,654,752
Loans held for sale	686,838		737,209
Total loans, excluding purchased credit impaired and covered loans	8,693,814		8,831,572
Mortgage servicing rights	219,254		235,402
Derivative financial instruments, assets	21,660		13,952
Derivative financial instrument, liabilities	44,979		37,927
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	66,070		65,873
States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	403,628		410,854
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	678,475		720,563
Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	178,458		187,662
Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	252,042		259,203
Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	10,751		10,597
Recurring basis
Financial assets and financial liabilities measured at fair value on a recurring basis
Loans held for sale	686,838		737,209
Total loans, excluding purchased credit impaired and covered loans	20,829
Mortgage servicing rights	219,254		235,402
Assets held in trust for deferred compensation	18,087		16,829
Derivative financial instruments, assets	68,283		46,388
Other liabilities	17,633	[1]	16,483	[1]
Derivative financial instrument, liabilities	47,162		40,499
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	66,070		65,873
Recurring basis | States and political subdivisions
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	403,628		410,854
Recurring basis | Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	678,475		720,563
Recurring basis | Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	178,458		187,662
Recurring basis | Corporate bonds
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	252,042		259,203
Recurring basis | Equity securities
Financial assets and financial liabilities measured at fair value on a recurring basis
Investment securities available for sale	10,751		10,597
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	10,751		10,597
Loans held for sale	0		0
Assets held in trust for deferred compensation	18,087		16,829
Derivative financial instruments, assets	6,427		1,607
Other liabilities	17,633	[1]	16,483	[1]
Derivative financial instrument, liabilities	8,235		7,209
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	10,751		10,597
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	1,577,738		1,643,182
Loans held for sale	686,838		737,209
Total loans, excluding purchased credit impaired and covered loans	20,829
Derivative financial instruments, assets	50,642		39,707
Derivative financial instrument, liabilities	38,927		33,290
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	66,070		65,873
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	403,165		410,391
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	678,003		720,053
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	178,458		187,662
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	252,042		259,203
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	935		973
Loans held for sale	0		0
Mortgage servicing rights			235,402
Derivative financial instruments, assets	11,214		5,074
Derivative financial instrument, liabilities	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	463		463
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	$ 472		$ 510

[1] Liabilities associated with assets held in trust for deferred compensation

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Reconciliation of the number of shares used in the calculation of basic and diluted earnings (loss) per common share, net income available to common stockholders, and earnings per 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
	March 31,
	2015		2014
Distributed earnings allocated to common stock	$	10,610	$	6,666
Undistributed earnings	23,501		13,303
Net income	34,111		19,969
Less: preferred stock dividends	2,000		—
Net income available to common stockholders	32,111		19,969
Less: earnings allocated to participating securities	1		—
Earnings allocated to common stockholders	$	32,110	$	19,969
Weighted average shares outstanding for basic earnings per common share	74,567,104		54,639,951
Dilutive effect of equity awards	597,612		625,237
Weighted average shares outstanding for diluted earnings per common share	75,164,716		55,265,188
Basic earnings per common share	$	0.43	$	0.37
Diluted earnings per common share	0.43		0.36

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Fair Value Measurements (Details 6) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
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
Financial Assets:
Cash and due from banks	$ 248,840	$ 256,804
Interest bearing deposits with banks	52,212	55,277
Investment securities available for sale	1,589,424	1,654,752
Investment securities held to maturity	1,045,205	1,035,061
Non-marketable securities - FHLB and FRB stock	87,677	75,569
Loans held for sale	686,838	737,209
Derivative financial instruments	21,660	13,952
Financial Liabilities:
Noninterest bearing deposits	4,290,499	4,118,256
Interest bearing deposits	6,729,002	6,872,686
Short-term borrowings	615,231	931,415
Junior subordinated notes issued to capital trusts	185,874	185,778
Derivative financial instruments	44,979	37,927
Carrying Amount
Financial Assets:
Cash and due from banks	248,840	256,804
Interest bearing deposits with banks	52,212	55,277
Investment securities available for sale	1,589,424	1,654,752
Investment securities held to maturity	1,000,859	993,380
Non-marketable securities - FHLB and FRB stock	87,677	75,569
Loans held for sale	686,838	737,209
Loans, net	8,807,916	8,973,191
Accrued interest receivable	46,532	49,065
Derivative financial instruments	68,283	46,388
Financial Liabilities:
Noninterest bearing deposits	4,290,499	4,118,256
Interest bearing deposits	6,729,002	6,872,686
Short-term borrowings	615,231	931,415
Long-term borrowings	85,477	82,916
Junior subordinated notes issued to capital trusts	185,874	185,778
Accrued interest payable	3,005	3,709
Derivative financial instruments	47,162	40,499
Total Fair Value
Financial Assets:
Cash and due from banks	248,840	256,804
Interest bearing deposits with banks	52,212	55,277
Investment securities available for sale	1,589,424	1,654,752
Investment securities held to maturity	1,045,205	1,035,061
Non-marketable securities - FHLB and FRB stock	87,677	75,569
Loans held for sale	686,838	737,209
Loans, net	8,870,489	8,956,494
Accrued interest receivable	46,532	49,065
Derivative financial instruments	68,283	46,388
Financial Liabilities:
Noninterest bearing deposits	4,290,499	4,118,256
Interest bearing deposits	6,734,854	6,877,349
Short-term borrowings	615,216	931,415
Long-term borrowings	88,299	86,025
Junior subordinated notes issued to capital trusts	123,059	122,408
Accrued interest payable	3,005	3,709
Derivative financial instruments	47,162	40,499
Recurring basis
Financial Assets:
Loans held for sale	686,838	737,209
Derivative financial instruments	68,283	46,388
Financial Liabilities:
Derivative financial instruments	47,162	40,499
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets:
Cash and due from banks	248,840	256,804
Interest bearing deposits with banks	52,212	55,277
Investment securities available for sale	10,751	10,597
Investment securities held to maturity	0	0
Non-marketable securities - FHLB and FRB stock	0	0
Loans held for sale	0	0
Loans, net	0	0
Accrued interest receivable	46,532	49,065
Derivative financial instruments	6,427	1,607
Financial Liabilities:
Noninterest bearing deposits	4,290,499	4,118,256
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	3,005	3,709
Derivative financial instruments	8,235	7,209
Recurring basis | Significant Other Observable Inputs (Level 2)
Financial Assets:
Cash and due from banks	0	0
Interest bearing deposits with banks	0	0
Investment securities available for sale	1,577,738	1,643,182
Investment securities held to maturity	1,045,205	1,035,061
Non-marketable securities - FHLB and FRB stock	0	0
Loans held for sale	686,838	737,209
Loans, net	20,829	0
Accrued interest receivable	0	0
Derivative financial instruments	50,642	39,707
Financial Liabilities:
Noninterest 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	38,927	33,290
Recurring basis | Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks	0	0
Interest bearing deposits with banks	0	0
Investment securities available for sale	935	973
Investment securities held to maturity	0	0
Non-marketable securities - FHLB and FRB stock	87,677	75,569
Loans held for sale	0	0
Loans, net	8,849,660	8,956,494
Accrued interest receivable	0	0
Derivative financial instruments	11,214	5,074
Financial Liabilities:
Noninterest bearing deposits	0	0
Interest bearing deposits	6,734,854	6,877,349
Short-term borrowings	615,216	931,415
Long-term borrowings	88,299	86,025
Junior subordinated notes issued to capital trusts	123,059	122,408
Accrued interest payable	0	0
Derivative financial instruments	$ 0	$ 0

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of derivative financial instruments

The Company’s derivative financial instruments are summarized below as of March 31, 2015 and December 31, 2014 (in thousands):

	Asset Derivatives								Liability Derivatives
	March 31, 2015				December 31, 2014				March 31, 2015					December 31, 2014
	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)	$	—	$	—	$	—	$	—	$	187	$	(14	)	$	197	$	(15	)
Stand-alone derivative instruments: (2)
Interest rate swap contracts	2,072,809		50,633		1,509,930		37,039		1,268,604		(34,942		)	2,001,787		(30,761		)
Interest rate options contracts	617,089		982		55,830		283		67,089		(260		)	55,830		(283		)
Foreign exchange contracts	49,017		4,470		27,402		2,276		46,904		(4,181		)	27,002		(2,109		)
Spot foreign exchange contracts	210		6		512		5		462		(46		)	304		(18		)
Mortgage related derivatives	955,583		12,192		871,446		6,785		1,271,000		(7,719		)	879,841		(7,313		)
Total non-hedging derivative instruments	3,694,708		68,283		2,465,120		46,388		2,654,059		(47,148		)	2,964,764		(40,484		)
Total	$	3,694,708	$	68,283	$	2,465,120	$	46,388	$	2,654,246	$	(47,162	)	$	2,964,961	$	(40,499	)

⁽¹⁾ Hedged fixed-rate commercial real estate loans

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

Schedule of the amount of gains and losses on derivative contracts designated as hedges and not designated as hedges

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

	Three Months Ended
	March 31,
	2015			2014
Derivative instruments designated as hedges of fair value:
Interest rate swap contracts	$	1		$	—
Stand-alone derivative instruments:
Interest rate swap contracts	11,125			9
Interest rate options contracts	723			—
Foreign exchange contracts	122			61
Spot foreign exchange contracts	(28		)	8
Mortgage related derivatives	908			3
Total non-hedging derivative instruments	12,850			81
Total	$	12,851		$	81

Schedule of Derivative Instruments

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	19	$	(19	)	$	—	$	—	$	10,604	$	(19	)	$	(10,585	)	$	—
Counterparty B	27		(27		)	—		—		4,962		(27		)	(4,935		)	—
Counterparty C	9,792		(9,792		)	—		—		13,218		(9,792		)	(3,426		)	—
Other counterparties	11,822		(6,917		)	—		4,905		16,195		(6,918		)	(7,745		)	1,532
Total derivatives	21,660		(16,755		)	—		4,905		44,979		(16,756		)	(26,691		)	1,532
Repurchase agreements	—		—			—		—		240,478		—			(240,478		)	—
Total	$	21,660	$	(16,755	)	$	—	$	4,905	$	285,457	$	(16,756	)	$	(267,169	)	$	1,532

	Financial Assets									Financial Liabilities
	Net Amount Recognized		Financial Instruments			Collateral		Net Amount		Net Amount Recognized		Financial Instruments			Collateral			Net Amount
Derivatives:
Counterparty A	$	13	$	(13	)	$	—	$	—	$	9,556	$	(13	)	$	(9,543	)	$	—
Counterparty B	145		(145		)	—		—		3,736		(145		)	(3,591		)	—
Counterparty C	6,123		(6,123		)	—		—		10,335		(6,122		)	(4,213		)	—
Other counterparties	7,671		(3,920		)	—		3,751		14,300		(3,920		)	(8,663		)	1,717
Total derivatives	13,952		(10,201		)	—		3,751		37,927		(10,200		)	(26,010		)	1,717
Repurchase agreements	—		—			—		—		219,824		—			(219,824		)	—
Total	$	13,952	$	(10,201	)	$	—	$	3,751	$	257,751	$	(10,200	)	$	(245,834	)	$	1,717

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of March 31, 2015 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 swaps, caps and floors	$	17,959	$	—	$	17,959	$	34,795	$	—	$	34,795
Foreign currency forward contracts	2,307		—		2,307		2,050		—		2,050
Mortgage related derivatives	1,394		—		1,394		8,134		—		8,134
Total derivatives	21,660		—		21,660		44,979		—		44,979
Repurchase agreements	—		—		—		240,478		—		240,478
Total	$	21,660	$	—	$	21,660	$	285,457	$	—	$	285,457

Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2014 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 swaps, caps and floors	$	10,727	$	—	$	10,727	$	29,916	$	—	$	29,916
Foreign currency forward contracts	1,525		—		1,525		709		—		709
Mortgage related derivatives	1,700		—		1,700		7,302		—		7,302
Total derivatives	13,952		—		13,952		37,927		—		37,927
Repurchase agreements	—		—		—		219,824		—		219,824
Total	$	13,952	$	—	$	13,952	$	257,751	$	—	$	257,751

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands):

	Contractual Amount
	March 31, 2015		December 31, 2014
Commitments to extend credit:
Home equity lines	$	209,466	$	221,102
Other commitments	2,651,028		2,643,220
Letters of credit:
Standby	132,056		131,810
Commercial	5,992		2,401

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 March 31, 2015, the maximum remaining term for any standby letters of credit was September 30, 2030.  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 March 31, 2015, 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 $3.8 million to $138.0 million from $134.2 million at December 31, 2014.  Of the $138.0 million in commitments outstanding at March 31, 2015, approximately $32.2 million of the letters of credit have been issued or renewed since December 31, 2014.

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 March 31, 2015, the Company had approximately $2.6 million in capital expenditure commitments outstanding which relate to various projects to renovate existing branches.

Concentrations of credit risk:  The majority of the loans, commitments to extend credit and standby letters of credit have been granted to customers in the Company’s market area.  As of March 31, 2015, approximately 25% 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 March 31, 2015. The distribution of commitments to extend credit approximates the distribution of loans outstanding.  Standby 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.

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.