Investor Relations Contact:
Sarah Lewensohn
312-564-3894
slewensohn@theprivatebank.com

Earnings per share of $0.27, up 42% on lower credit costs and loan growth of $189 million
Conference call scheduled for Oct. 10, 2012 at 4:30 p.m. EDT

CHICAGO, October 10, 2012—PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $19.6 million, or $0.27 per diluted share, for the third quarter 2012, compared to $10.0 million, or $0.14 per diluted share, for the third quarter 2011, and $14.1 million, or $0.19 per diluted share, for the second quarter 2012.

For the nine months ended September 30, 2012, the Company had net income available to common shareholders of $44.5 million, or $0.61 per diluted share, compared to $23.1 million, or $0.32 per diluted share, for the nine months ended September 30, 2011.

"We posted another quarter of strong earnings momentum driven by the consistent execution of our commercial middle market business strategy and the ongoing strengthening of our asset quality position," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Our emphasis on developing client relationships led to continued loan growth and increased fee revenue from cross sell of our banking products. Despite the competitive market and low interest rate environment, we have grown quarterly net revenue, excluding securities gains, by 7 percent over the past year.

"Year to date 2012, we grew total loans by more than $600 million and, at the same time, increased deposits and fee income, and improved asset quality. The continued execution of our strategy and depth of the client relationships that we are building position us well for future opportunities."

Net revenue was $134.0 million in the third quarter 2012, an increase of 4 percent compared to $129.4 million in the third quarter 2011, and up slightly as compared to $132.3 million in the second quarter 2012. Operating profit was $52.2 million in the third quarter 2012, compared to $54.4 million in the same period prior year and $48.4 million in the prior quarter. The third quarter 2011 results included $4.4 million of net securities gains compared to a net loss of $211,000 for third quarter 2012. As compared to the second quarter of 2012, operating profit increased 8 percent, largely as a result of lower net foreclosed property expenses and an increase in fee income.

Net interest income was $105.4 million for the third quarter 2012, an increase of 4 percent from $101.1 million for the third quarter 2011, and flat as compared to second quarter 2012. Average loan balances increased $840.6 million as compared to the same period prior year, and $136.5 million as compared to the prior quarter. Incremental interest income generated from higher loan balances during the quarter was offset by the decline in yields on the loan and investment portfolios. Competitive pricing pressures, change in mix and the low interest rate environment have led to lower yields on the loan and investment portfolios, while the Company's cost of funds has remained relatively flat. Yield trends are likely to continue to pressure net interest margin given the current operating environment.

Net interest margin was 3.35 percent for the third quarter 2012, down from 3.49 percent in the third quarter 2011 and 3.46 percent in the second quarter 2012. Higher federal funds sold balances during the third quarter 2012, primarily due to increased client deposit flows, reduced net interest margin by 5 basis points as these balances generated only minimal interest income. Lower securities investment yields and lower loan yields reduced net interest margin by 6 basis points from the previous quarter.

Non-interest income was $27.8 million in the third quarter 2012, flat compared to the third quarter 2011, and an increase of 6 percent compared to the second quarter 2012. The third quarter 2011 non-interest income included $4.4 million of net securities gains compared to a net loss of $211,000 for third quarter 2012. Growth in mortgage banking, syndication and treasury management fees in the third quarter 2012 contributed to increased non-interest income. Syndication fees, a component of loan and credit related fees, totaled $2.7 million in the third quarter 2012, compared to $908,000 for the third quarter 2011, and $2.0 million for second quarter 2012. Like capital markets revenue, syndication fees tend to fluctuate from quarter to quarter depending on client needs, market conditions and loan origination trends. Capital markets revenue was $5.8 million in the third quarter 2012, compared to $5.5 million in the same period prior year and $6.0 million in the second quarter 2012. Third quarter

2012 capital markets revenue included a $5,000 positive credit valuation adjustment. The third quarter 2011 results included a negative credit valuation adjustment of $1.2 million and the second quarter 2012 results included a negative credit valuation adjustment of $830,000.

Non-interest expense was $81.7 million for the third quarter 2012, compared to $75.0 million for the third quarter 2011 and $83.9 million for the second quarter 2012. The increase in non-interest expense, as compared to the same period prior year, is primarily attributable to higher salaries and employee benefits expense, primarily due to higher costs associated with share-based compensation programs and performance-based incentives. For the third quarter 2012, the 3 percent decline in non-interest expense from the previous quarter is primarily due to lower net foreclosed property expense resulting from lower valuation adjustments, which totaled $6.2 million in the third quarter 2012 compared to $9.2 million in the second quarter 2012. The increase in salaries and employee benefits expense as compared to second quarter 2012 is largely a result of an increase in the Company's accrual for performance-based compensation.

The effective tax rate for the quarter was 39.3 percent, down from 43.0 percent in the second quarter 2012 primarily due to increased tax benefits associated with stock-based compensation. For the first nine months of 2012, the effective tax rate was 40.8 percent. The Company estimates an effective tax rate for the full year 2012 ranging from 41 to 42 percent.

The Company's asset quality continued to improve during the third quarter 2012. Non-performing assets declined to $277.7 million at September 30, 2012, down 34 percent from $421.1 million at September 30, 2011, and down 13 percent from $319.2 million at June 30, 2012. Non-performing assets to total assets were 2.09 percent at September 30, 2012, compared to 3.50 percent a year ago and 2.47 percent at June 30, 2012. Non-performing loans were $179.9 million at the end of the third quarter 2012, a 41 percent decline from $304.7 million a year ago, and a 14 percent decline from $209.3 million at the end of the second quarter 2012. During the third quarter 2012, non-performing loan inflows were $38.9 million, including $15.5 million of restructured loans accruing interest, down considerably from $57.7 million in the prior quarter. Special mention and potential problem loans declined 56 percent from the third quarter 2011, and 20 percent from the second quarter 2012. The Company expects problem assets will continue to trend lower for the fourth quarter 2012.

During the third quarter 2012, the Company disposed of $45 million of problem assets, with an incremental charge of less than 1 percent based on the carrying value net of specific reserves at the time of disposition.

The reduction of the allowance for loan losses reflects the overall improvement in asset quality, the reduced requirement for specific reserves and lower charge-offs. At September 30, 2012, the allowance for loan losses was $166.9 million, or 1.73 percent of total loans, compared to $200.0 million, or 2.31 percent of total loans, at September 30, 2011, and $174.3 million, or 1.85 percent of total loans at June 30, 2012. As a percentage of non-performing loans, the allowance for loan losses was 93 percent at the end of the third quarter 2012, compared to 66 percent a year ago, and 83 percent at the end of the second quarter 2012.

Charge-offs declined to $23.1 million for the third quarter 2012, from $42.0 million for the same period prior year and $33.9 million for the prior quarter. The third quarter 2012 provision for loan losses, excluding covered loan provision, was $13.2 million, down from $32.3 million for the same period prior year and $17.4 million for the prior quarter.

Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement.

Total assets were $13.3 billion at September 30, 2012, up from $12.9 billion at June 30, 2012, and total loans were $9.6 billion at September 30, 2012, compared to $9.4 billion at June 30, 2012. The 2 percent growth in total loans this quarter was primarily from commercial and industrial loans. The Company funded $325.9 million in loans to new relationships during the third quarter 2012.

Total deposits were $11.4 billion at September 30, 2012, up from $10.7 billion at June 30, 2012. Non interest-bearing deposits comprised 29 percent of total deposits at September 30, 2012, up 2 percentage points as compared to total deposits at June 30, 2012. The increase in deposits during the third quarter 2012 reflects a focused initiative to organically grow deposits. The deposit balances of the Company's commercial clients may fluctuate depending on their cash management and liquidity needs.

The Company's investment securities portfolio was $2.4 billion at September 30, 2012, flat as compared to the end of the prior quarter. The securities portfolio is primarily comprised of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.

As of September 30, 2012, the Company's total risk-based capital ratio was 13.90 percent, the Tier 1 risk-based capital ratio was 12.24 percent and the leverage ratio was 11.15 percent. Tier 1 common capital ratio was 8.12 percent and tangible common equity ratio was 7.70 percent at the end of the third quarter 2012.

PrivateBancorp, Inc. will host a conference call on Wednesday, October 10, 2012, at 3:30 p.m. CT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode: 34461639. A live webcast of the call can be accessed on the Company website at www.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on October 24, 2012, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode: 34461639.

PrivateBancorp, Inc., through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. As of September 30, 2012, the Company had 35 offices in 10 states and $13.3 billion in assets. The Company website is www.theprivatebank.com.

Statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of federal securities laws. Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward-looking statements include, but are not limited to: unforeseen credit quality problems or further deterioration in problem assets that could result in charge-offs greater than we have anticipated in our allowance for loan losses; adverse developments impacting one or more large credits; the extent of further deterioration in real estate values in our

market areas, particularly in the Chicago area; difficulties in resolving problem credits or slower than anticipated dispositions of other real estate owned which may result in increased losses or higher credit-related operating costs; continued uncertainty regarding U.S. and global economic recovery and economic outlook, and ongoing volatility in market conditions, that may impact credit quality or prolong weakness in demand for loans or other banking products and services; unanticipated withdrawals of significant deposits; lack of sufficient or cost-effective sources of liquidity or funding; our ability to complete our planned capital raising transactions and fund and complete our anticipated redemption of the preferred stock and common stock warrants we issued to the U.S. Department of the Treasury; loss of key personnel or an inability to recruit and retain appropriate talent; unanticipated changes in interest rates, prolonged low interest rate environment or significant tightening of credit spreads; competitive pricing trends; uncertainty relating to recently proposed regulatory capital rules that could, depending on the nature of our assets, require us to maintain higher levels of regulatory capital; uncertainty regarding implications of recently adopted or proposed rules and regulations, or those remaining to be proposed in connection with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act that may negatively affect our revenues or profitability; other legislative, regulatory or accounting changes affecting financial services companies and/or the products and services offered by financial services companies; or failures or disruptions to our data processing or other information or operational systems. Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2011 as well as those set forth in our subsequent periodic and current reports filed with the SEC. These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Forward-looking statements speak only as of the date they are made and we assume no obligation to update any of these statements in light of new information, future events or otherwise, unless required under the federal securities laws.

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures. The Company believes that these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the Company, its business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	Three Months Ended September 30,					Nine Months Ended September 30,

	2012			2011		2012			2011
	unaudited			unaudited		unaudited			unaudited
Interest Income
Loans, including fees	$	106,358		$	102,174	$	315,039		$	310,212
Federal funds sold and other short-term investments		248			231		513			966
Securities:
Taxable		14,033			15,196		44,267			46,154
Exempt from Federal income taxes		1,389			1,293		4,025			4,166

Total interest income		122,028			118,894		363,844			361,498
Interest Expense
Interest-bearing demand deposits		958			625		2,393			1,854
Savings deposits and money market accounts		4,206			5,356		13,073			18,100
Brokered and time deposits		5,860			5,895		16,271			19,115
Short-term borrowings		101			466		366			1,859
Long-term debt		5,495			5,463		16,611			16,425

Total interest expense		16,620			17,805		48,714			57,353

Net interest income		105,408			101,089		315,130			304,145
Provision for loan and covered loan losses		13,509			32,615		58,248			101,286

Net interest income after provision for loan and covered loan losses		91,899			68,474		256,882			202,859

Non-interest Income
Trust and Investments		4,254			4,452		12,785			13,834
Mortgage banking		3,685			1,565		9,263			3,671
Capital markets products		5,832			5,510		19,214			13,870
Treasury management		5,490			4,590		15,904			13,368
Loan and credit-related fees		7,479			5,413		20,378			16,601
Deposit service charges and fees and other income		1,308			1,735		4,439			6,103
Net securities (losses) gains		(211	)		4,370		(396	)		5,407

Total non-interest income		27,837			27,635		81,587			72,854

Non-interest Expense
Salaries and employee benefits		44,820			38,841		129,695			116,034
Net occupancy expense		7,477			7,515		22,809			22,592
Technology and related costs		3,432			2,856		10,001			8,246
Marketing		2,645			2,218		7,863			6,661
Professional services		2,151			2,434		6,355			7,080
Outsourced servicing costs		1,802			1,918		5,605			5,924
Net foreclosed property expenses		8,596			7,129		28,725			20,920
Postage, telephone, and delivery		837			944		2,588			2,763
Insurance		3,352			5,393		11,896			17,825
Loan and collection expense		3,329			2,931		9,404			9,731
Other expenses		3,289			2,855		10,876			8,271

Total non-interest expense		81,730			75,034		245,817			226,047

Income before income taxes		38,006			21,075		92,652			49,666
Income tax provision		14,952			7,593		37,839			16,192

Net income		23,054			13,482		54,813			33,474
Net income attributable to noncontrolling interests		—			33		—			163

Net income attributable to controlling interests		23,054			13,449		54,813			33,311
Preferred stock dividends and discount accretion		3,447			3,426		10,325			10,260

Net income available to common stockholders	$	19,607		$	10,023	$	44,488		$	23,051

Per Common Share Data
Basic earnings per share	$	0.27		$	0.14	$	0.62		$	0.32
Diluted earnings per share	$	0.27		$	0.14	$	0.61		$	0.32
Cash dividends declared	$	0.01		$	0.01	$	0.03		$	0.03
Weighted-average common shares outstanding		71,010			70,479		70,915			70,418
Weighted-average diluted common shares outstanding		71,274			70,621		71,110			70,682

Quarterly Consolidated Income Statements
Unaudited
(Amounts in thousands except per share data)

	3Q12			2Q12			1Q12		4Q11		3Q11

Interest Income
Loans, including fees	$	106,358		$	105,142		$	103,539	$	102,897	$	102,174
Federal funds sold and other short-term investments		248			133			132		215		231
Securities:
Taxable		14,033			14,854			15,380		15,263		15,196
Exempt from Federal income taxes		1,389			1,336			1,300		1,273		1,293

Total interest income		122,028			121,465			120,351		119,648		118,894
Interest Expense
Interest-bearing demand deposits		958			799			636		585		625
Savings deposits and money market accounts		4,206			4,265			4,602		4,857		5,356
Brokered and time deposits		5,860			5,394			5,017		5,561		5,895
Short-term borrowings		101			123			142		152		466
Long-term debt		5,495			5,538			5,578		5,511		5,463

Total interest expense		16,620			16,119			15,975		16,666		17,805

Net interest income		105,408			105,346			104,376		102,982		101,089
Provision for loan and covered loan losses		13,509			17,038			27,701		31,611		32,615

Net interest income after provision for loan and covered loan losses		91,899			88,308			76,675		71,371		68,474

Non-interest Income
Trust and Investments		4,254			4,312			4,219		3,992		4,452
Mortgage banking		3,685			2,915			2,663		3,032		1,565
Capital markets products		5,832			6,033			7,349		5,471		5,510
Treasury management		5,490			5,260			5,154		4,813		4,590
Loan and credit-related fees		7,479			6,372			6,527		5,606		5,413
Deposit service charges and fees and other income		1,308			1,644			1,487		2,115		1,735
Net securities (losses) gains		(211	)		(290	)		105		364		4,370

Total non-interest income		27,837			26,246			27,504		25,393		27,635

Non-interest Expense
Salaries and employee benefits		44,820			42,177			42,698		40,729		38,841
Net occupancy expense		7,477			7,653			7,679		7,394		7,515
Technology and related costs		3,432			3,273			3,296		3,142		2,856
Marketing		2,645			3,058			2,160		2,250		2,218
Professional services		2,151			2,247			1,957		2,126		2,434
Outsourced servicing costs		1,802			2,093			1,710		2,077		1,918
Net foreclosed property expenses		8,596			11,894			8,235		6,862		7,129
Postage, telephone, and delivery		837			882			869		953		944
Insurance		3,352			4,239			4,305		3,462		5,393
Loan and collection expense		3,329			2,918			3,157		3,840		2,931
Other expenses		3,289			3,424			4,163		3,395		2,855

Total non-interest expense		81,730			83,858			80,229		76,230		75,034

Income before income taxes		38,006			30,696			23,950		20,534		21,075
Income tax provision		14,952			13,192			9,695		9,468		7,593

Net income		23,054			17,504			14,255		11,066		13,482
Net income attributable to noncontrolling interests		—			—			—		7		33

Net income attributable to controlling interests		23,054			17,504			14,255		11,059		13,449
Preferred stock dividends and discount accretion		3,447			3,442			3,436		3,430		3,426

Net income available to common stockholders	$	19,607		$	14,062		$	10,819	$	7,629	$	10,023

Per Common Share Data
Basic earnings per share	$	0.27		$	0.19		$	0.15	$	0.11	$	0.14
Diluted earnings per share	$	0.27		$	0.19		$	0.15	$	0.11	$	0.14
Cash dividends declared	$	0.01		$	0.01		$	0.01	$	0.01	$	0.01
Weighted-average common shares outstanding		71,010			70,956			70,780		70,540		70,479
Weighted-average diluted common shares outstanding		71,274			71,147			70,932		70,713		70,621

	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11

	unaudited			unaudited			unaudited			audited			unaudited
Assets
Cash and due from banks	$	143,573		$	141,563		$	166,062		$	156,131		$	171,268
Fed funds sold and other short-term investments		470,984			315,378			193,571			205,610			248,559
Loans held for sale		49,209			35,342			29,185			32,049			24,126
Securities available-for-sale, at fair value		1,550,516			1,625,649			1,705,649			1,783,465			1,872,587
Securities held-to-maturity, at amortized cost		784,930			693,277			598,066			490,143			273,200
Non-marketable equity investments		48,977			47,702			43,882			43,604			43,894
Loans—excluding covered assets, net of unearned fees		9,625,421			9,436,235			9,222,253			9,008,561			8,674,955
Allowance for loan losses		(166,859	)		(174,302	)		(183,844	)		(191,594	)		(200,041	)

Loans, net of allowance for loan losses and unearned fees		9,458,562			9,261,933			9,038,409			8,816,967			8,474,914

Covered assets		208,979			244,782			276,534			306,807			318,973
Allowance for covered loan losses		(21,500	)		(21,733	)		(26,323	)		(25,939	)		(16,689	)

Covered assets, net of allowance for covered loan losses		187,479			223,049			250,211			280,868			302,284

Other real estate owned, excluding covered assets		97,833			109,836			123,498			125,729			116,364
Premises, furniture, and equipment, net		40,526			38,177			37,462			38,633			39,069
Accrued interest receivable		36,892			37,089			36,033			35,732			32,686
Investment in bank owned life insurance		52,134			51,751			51,356			50,966			50,565
Goodwill		94,534			94,546			94,559			94,571			94,584
Other intangible assets		13,500			14,152			14,683			15,353			15,715
Capital markets derivative assets		104,697			102,613			97,805			101,676			111,248
Other assets		144,208			150,119			142,733			145,373			148,798

Total assets	$	13,278,554		$	12,942,176		$	12,623,164		$	12,416,870		$	12,019,861

Liabilities
Demand deposits:
Noninterest-bearing	$	3,295,568		$	2,920,182		$	3,054,536		$	3,244,307		$	2,832,481
Interest-bearing		893,194			785,879			714,522			595,238			611,293
Savings deposits and money market accounts		4,381,595			4,146,022			4,347,832			4,378,220			4,392,697
Brokered deposits		1,290,796			1,484,435			961,481			815,951			902,002
Time deposits		1,498,287			1,398,012			1,344,341			1,359,138			1,370,190

Total deposits		11,359,440			10,734,530			10,422,712			10,392,854			10,108,663
Short-term borrowings		5,000			335,000			355,000			156,000			59,154
Long-term debt		374,793			374,793			379,793			379,793			379,793
Accrued interest payable		5,287			5,855			5,425			5,567			5,841
Capital markets derivative liabilities		108,094			105,773			100,109			104,140			113,968
Other liabilities		62,500			52,071			47,971			81,764			66,266

Total liabilities		11,915,114			11,608,022			11,311,010			11,120,118			10,733,685

Equity
Preferred stock—Series B		241,585			241,185			240,791			240,403			240,020
Common stock		71,884			71,843			71,611			71,483			71,220
Treasury stock		(22,736	)		(22,639	)		(21,749	)		(21,454	)		(20,680	)
Additional paid-in capital		983,739			978,510			973,417			968,787			965,640
Retained earnings/(accumulated deficit)		33,150			14,268			932			(9,164	)		(16,075	)
Accumulated other comprehensive income, net of tax		55,818			50,987			47,152			46,697			46,051

Total stockholders' equity		1,363,440			1,334,154			1,312,154			1,296,752			1,286,176

Noncontrolling interests		—			—			—			—			—

Total equity		1,363,440			1,334,154			1,312,154			1,296,752			1,286,176

Total liabilities and equity	$	13,278,554		$	12,942,176		$	12,623,164		$	12,416,870		$	12,019,861

	3Q12			2Q12			1Q12			4Q11			3Q11

Selected Statement of Income Data:
Net interest income	$	105,408		$	105,346		$	104,376		$	102,982		$	101,089
Net revenue⁽¹⁾⁽²⁾	$	133,974		$	132,291		$	132,560		$	129,046		$	129,404
Operating profit⁽¹⁾⁽²⁾	$	52,244		$	48,433		$	52,331		$	52,816		$	54,370
Provision for loan and covered loan losses	$	13,509		$	17,038		$	27,701		$	31,611		$	32,615
Income before taxes	$	38,006		$	30,696		$	23,950		$	20,534		$	21,075
Net income available to common stockholders	$	19,607		$	14,062		$	10,819		$	7,629		$	10,023
Per Common Share Data:
Basic earnings per share	$	0.27		$	0.19		$	0.15		$	0.11		$	0.14
Diluted earnings per share	$	0.27		$	0.19		$	0.15		$	0.11		$	0.14
Dividends declared	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value (period end)⁽¹⁾	$	15.49		$	15.09		$	14.79		$	14.72		$	14.57
Tangible book value (period end)⁽¹⁾⁽²⁾	$	14.00		$	13.59		$	13.29		$	13.19		$	13.04
Market value (close)	$	15.99		$	14.76		$	15.17		$	10.98		$	7.52
Book value multiple		1.03	x		0.98	x		1.03	x		0.75	x		0.52	x
Share Data:
Weighted-average common shares outstanding		71,010			70,956			70,780			70,540			70,479
Weighted-average diluted common shares outstanding		71,274			71,147			70,932			70,713			70,621
Common shares issued (at period end)		73,291			73,273			73,205			72,514			72,491
Common shares outstanding (at period end)		72,436			72,424			72,415			71,745			71,789
Performance Ratios:
Return on average assets		0.70	%		0.55	%		0.46	%		0.36	%		0.44	%
Return on average common equity		7.00	%		5.18	%		4.05	%		2.86	%		3.80	%
Net interest margin⁽¹⁾⁽²⁾		3.35	%		3.46	%		3.53	%		3.48	%		3.49	%
Fee revenue as a percent of total revenue⁽¹⁾		21.02	%		20.12	%		20.79	%		19.55	%		18.71	%
Non-interest income to average assets		0.85	%		0.83	%		0.89	%		0.82	%		0.91	%
Non-interest expense to average assets		2.49	%		2.64	%		2.59	%		2.45	%		2.46	%
Net overhead ratio⁽¹⁾		1.64	%		1.81	%		1.70	%		1.64	%		1.56	%
Efficiency ratio⁽¹⁾⁽²⁾		61.00	%		63.39	%		60.52	%		59.07	%		57.98	%
Selected Information:
Assets under management and administration (AUMA)⁽¹⁾	$	5,007,235		$	4,738,973		$	4,879,947		$	4,303,547		$	4,161,614
Custody assets included in AUMA	$	2,192,530		$	2,073,777		$	2,060,455		$	1,599,528		$	1,525,001
Credit valuation adjustment on capital markets derivatives⁽¹⁾	$	5		$	(830	)	$	19		$	244		$	(1,207	)
Balance Sheet Ratios:
Loans to deposits (period end)⁽³⁾		84.73	%		87.91	%		88.48	%		86.68	%		85.82	%
Average interest-earning assets to average interest-bearing liabilities		147.76	%		146.44	%		149.68	%		150.70	%		145.30	%
Capital Ratios (period end):
Total risk-based capital⁽¹⁾⁽²⁾		13.90	%		14.12	%		14.20	%		14.28	%		14.82	%
Tier 1 risk-based capital⁽¹⁾⁽²⁾		12.24	%		12.25	%		12.31	%		12.38	%		12.89	%
Leverage⁽¹⁾⁽²⁾		11.15	%		11.20	%		11.35	%		11.33	%		11.48	%
Tier 1 common capital⁽¹⁾⁽²⁾		8.12	%		8.05	%		8.04	%		8.04	%		8.34	%
Tangible common equity to tangible assets⁽¹⁾⁽²⁾		7.70	%		7.67	%		7.69	%		7.69	%		7.86	%
Total equity to total assets		10.27	%		10.31	%		10.39	%		10.44	%		10.70	%

	09/30/12				06/30/12				03/31/12				12/31/11				09/30/11

	unaudited				unaudited				unaudited				audited				unaudited
Commercial and industrial	$	4,666,375	48	%	$	4,523,780	48	%	$	4,325,558	47	%	$	4,192,842	46	%	$	3,959,153	45	%
Commercial—owner-occupied CRE		1,437,935	15	%		1,384,831	15	%		1,175,729	13	%		1,130,932	13	%		1,070,340	12	%

Total commercial		6,104,310	63	%		5,908,611	63	%		5,501,287	60	%		5,323,774	59	%		5,029,493	57	%

Commercial real estate		2,069,423	21	%		2,124,492	23	%		2,378,640	26	%		2,233,851	25	%		2,156,621	25	%
Commercial real estate—multi-family		544,775	6	%		499,250	5	%		493,218	5	%		452,595	5	%		445,908	5	%

Total commercial real estate		2,614,198	27	%		2,623,742	28	%		2,871,858	31	%		2,686,446	30	%		2,602,529	30	%

Construction		162,724	2	%		171,014	2	%		127,837	1	%		287,002	3	%		315,858	4	%
Residential real estate		360,094	4	%		330,254	3	%		308,880	3	%		297,229	3	%		307,705	4	%
Home equity		170,068	2	%		174,131	2	%		175,972	2	%		181,158	2	%		186,914	2	%
Personal		214,027	2	%		228,483	2	%		236,419	3	%		232,952	3	%		232,456	3	%

Total loans	$	9,625,421	100	%	$	9,436,235	100	%	$	9,222,253	100	%	$	9,008,561	100	%	$	8,674,955	100	%

Loan Composition (excluding covered assets⁽¹⁾)
Unaudited
(Dollars in thousands)

Commercial Loans Composition by Industry Segment
(Classified pursuant to the North American Industrial Classification System standard industry descriptions and represents our client's primary business activity)

	09/30/12					06/30/12					12/31/11

	Amount		% of Total			Amount		% of Total			Amount		% of Total
Manufacturing	$	1,361,831		22	%	$	1,347,763		23	%	$	1,257,973		24	%
Healthcare		1,346,520		22	%		1,290,219		22	%		1,218,205		23	%
Wholesale trade		641,077		10	%		588,666		10	%		482,386		9	%
Finance and insurance		489,261		8	%		492,367		8	%		454,830		8	%
Real estate, rental and leasing		349,763		6	%		333,393		6	%		342,860		6	%
Professional, scientific and technical services		408,461		7	%		410,156		7	%		350,677		7	%
Administrative, support, waste management and remediation services		411,977		7	%		351,447		6	%		321,912		6	%
Architectural, engineering and construction		262,524		4	%		257,529		4	%		195,875		4	%
All other⁽²⁾		832,896		14	%		837,071		14	%		699,056		13	%

Total commercial⁽³⁾	$	6,104,310		100	%	$	5,908,611		100	%	$	5,323,774		100	%

	09/30/12										06/30/12										12/31/11

	Amount Outstanding		% of Total			Amount Non- performing		% Non- performing⁽⁴⁾			Amount Outstanding		% of Total			Amount Non- performing		% Non- performing⁽⁴⁾			Amount Outstanding		% of Total
Commercial Real Estate Portfolio
Land	$	244,306		9	%	$	19,664		8	%	$	225,810		9	%	$	24,792		11	%	$	230,579		9	%
Residential 1-4 family		58,410		2	%		12,523		21	%		90,554		3	%		12,139		13	%		105,919		4	%
Multi-family		544,775		21	%		8,619		2	%		499,250		19	%		8,752		2	%		452,595		17	%
Industrial/warehouse		317,593		12	%		10,390		3	%		310,203		12	%		6,886		2	%		350,282		13	%
Office		564,724		22	%		7,056		1	%		568,435		22	%		20,560		4	%		585,183		22	%
Retail		424,683		16	%		24,467		6	%		401,888		15	%		37,730		9	%		431,200		16	%
Healthcare		164,974		6	%		—		—			209,934		8	%		—		—			144,529		5	%
Mixed use/other		294,733		12	%		5,338		2	%		317,668		12	%		8,585		3	%		386,159		14	%

Total commercial real estate	$	2,614,198		100	%	$	88,057		3	%	$	2,623,742		100	%	$	119,444		5	%	$	2,686,446		100	%

Construction Portfolio
Land	$	54,534		34	%	$	—		—		$	53,050		31	%	$	—		—		$	23,422		8	%
Residential 1-4 family		9,865		6	%		—		—			14,785		9	%		—		—			21,906		8	%
Multi-family		13,362		8	%		—		—			11,950		7	%		—		—			64,892		23	%
Industrial/warehouse		3,194		2	%		—		—			4,870		3	%		—		—			15,216		5	%
Office		34,957		21	%		402		1	%		39,303		23	%		401		1	%		43,403		15	%
Retail		19,737		12	%		—		—			11,736		7	%		—		—			61,469		21	%
Mixed use/other		27,075		17	%		155		1	%		35,320		20	%		154		*			56,694		20	%

Total construction	$	162,724		100	%	$	557		*		$	171,014		100	%	$	555		*		$	287,002		100	%

Asset Quality (excluding covered assets⁽¹⁾)
Unaudited
(Dollars in thousands)

	3Q12			2Q12			1Q12			4Q11			3Q11

Credit Quality Key Ratios
Net charge-offs (annualized) to average loans		0.87	%		1.16	%		1.57	%		1.72	%		1.76	%
Nonperforming loans to total loans		1.87	%		2.22	%		2.53	%		2.88	%		3.51	%
Nonperforming loans to total assets		1.35	%		1.62	%		1.85	%		2.09	%		2.54	%
Nonperforming assets to total assets		2.09	%		2.47	%		2.83	%		3.11	%		3.50	%
Allowance for loan losses to:
Total loans		1.73	%		1.85	%		1.99	%		2.13	%		2.31	%
Nonperforming loans		93	%		83	%		79	%		74	%		66	%
Nonperforming assets
Loans past due 90 days and accruing	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans		179,895			209,339			233,222			259,852			304,747
OREO		97,833			109,836			123,498			125,729			116,364

Total nonperforming assets	$	277,728		$	319,175		$	356,720		$	385,581		$	421,111

Restructured loans accruing interest	$	58,431		$	97,690		$	136,521		$	100,909		$	106,330
Special mention loans	$	104,706		$	108,052		$	143,790		$	204,965		$	218,561
Potential problem loans	$	112,929		$	164,077		$	184,029		$	177,095		$	277,125
Nonperforming Loans Rollforward
Beginning balance	$	209,339		$	233,222		$	259,852		$	304,747		$	330,448
Additions:
New nonaccrual loans		38,948			57,717			69,581			67,512			68,298
Reductions:
Return to performing status		(236	)		(1,953	)		(14,291	)		(2,072	)		(1,608	)
Paydowns and payoffs, net of advances		(11,094	)		(9,961	)		(4,806	)		(8,950	)		(13,166	)
Net sales		(21,351	)		(25,954	)		(27,479	)		(27,178	)		(20,432	)
Transfer to OREO		(3,250	)		(9,968	)		(13,513	)		(33,695	)		(24,373	)
Transfer to loans held for sale		(9,200	)		—			—			—			—
Charge-offs		(23,261	)		(33,764	)		(36,122	)		(40,512	)		(34,420	)

Total reductions		(68,392	)		(81,600	)		(96,211	)		(112,407	)		(93,999	)

Balance at end of period	$	179,895		$	209,339		$	233,222		$	259,852		$	304,747

OREO Rollforward
Beginning balance	$	109,836		$	123,498		$	125,729		$	116,364		$	123,997
New foreclosed properties		3,250			9,968			13,513			33,695			24,373
Valuation adjustments		(6,245	)		(9,207	)		(4,522	)		(3,999	)		(1,175	)
Disposals:
Sales proceeds		(8,041	)		(13,517	)		(9,078	)		(18,085	)		(25,921	)
Net loss on sale		(967	)		(906	)		(2,144	)		(2,246	)		(4,910	)

Balance at end of period	$	97,833		$	109,836		$	123,498		$	125,729		$	116,364

Restructured Loans Accruing Interest Rollforward
Beginning balance	$	97,690		$	136,521		$	100,909		$	106,330		$	124,614
Additions:
New restructured loans accruing interest		2,001			1,864			47,673			8,803			8,592
Restructured loans returned to accruing status		—			157			—			1,099			1,029
Reductions:
Paydowns and payoffs, net of advances		(3,935	)		(14,593	)		(4,661	)		(3,334	)		(20,545	)
Transferred to nonperforming loans		(15,464	)		(25,688	)		(6,665	)		(5,735	)		(4,716	)
Net sales		—			(170	)		—			—			(2,260	)
Removal of restructured loan status		(21,861	)		(401	)		(735	)		(6,254	)		(340	)
Charge-offs, net		—			—			—			—			(44	)

Balance at end of period	$	58,431		$	97,690		$	136,521		$	100,909		$	106,330

Asset Quality (excluding covered assets⁽¹⁾)
Unaudited
(Dollars in thousands)

	Special Mention Loans				Potential Problem Loans				Non- Performing Loans				Total Loans

As of September 30, 2012
Transformational⁽¹⁾
Commercial	$	38,369	0.7	%	$	37,792	0.7	%	$	52,845	0.9	%	$	5,669,595
Commercial real estate		33,333	1.9	%		1,250	0.1	%		40,072	2.3	%		1,768,955
Construction		—	—			—	—			—	—			159,696
Residential real estate		—	—			4,323	2.0	%		1,439	0.7	%		220,066
Home equity		—	—			1,528	2.2	%		794	1.1	%		69,700
Personal		—	—			49	*			600	0.4	%		162,658

Total transformational	$	71,702	0.9	%	$	44,942	0.6	%	$	95,750	1.2	%	$	8,050,670
Legacy⁽¹⁾
Commercial	$	17,078	3.9	%	$	4,950	1.1	%	$	8,337	1.9	%	$	434,715
Commercial real estate		13,241	1.6	%		45,901	5.4	%		47,985	5.7	%		845,243
Construction		—	—			—	—			557	18.4	%		3,028
Residential real estate		2,371	1.7	%		13,018	9.3	%		11,063	7.9	%		140,028
Home equity		312	0.3	%		3,836	3.8	%		11,614	11.6	%		100,368
Personal		2	*			282	0.5	%		4,589	8.9	%		51,369

Total legacy		33,004	2.1	%		67,987	4.3	%		84,145	5.3	%		1,574,751

Total	$	104,706	1.1	%	$	112,929	1.2	%	$	179,895	1.9	%	$	9,625,421

As of June 30, 2012
Transformational⁽¹⁾
Commercial	$	50,348	0.9	%	$	54,982	1.0	%	$	45,464	0.8	%	$	5,413,098
Commercial real estate		16,724	1.0	%		21,921	1.3	%		68,843	4.0	%		1,721,408
Construction		5,844	3.5	%		—	—			—	—			164,639
Residential real estate		351	0.2	%		4,653	3.1	%		1,250	0.8	%		149,150
Home equity		—	—			1,656	2.6	%		423	0.7	%		64,266
Personal		—	—			51	*			1,010	0.6	%		158,378

Total transformational	$	73,267	1.0	%	$	83,263	1.1	%	$	116,990	1.5	%	$	7,670,939
Legacy⁽¹⁾
Commercial	$	5,630	1.1	%	$	7,940	1.6	%	$	14,377	2.9	%	$	495,513
Commercial real estate		26,254	2.9	%		52,943	5.9	%		50,601	5.6	%		902,334
Construction		—	—			—	—			555	8.7	%		6,375
Residential real estate		2,378	1.3	%		14,959	8.3	%		9,778	5.4	%		181,104
Home equity		516	0.5	%		4,200	3.8	%		11,640	10.6	%		109,865
Personal		7	*			772	1.1	%		5,398	7.7	%		70,105

Total legacy		34,785	2.0	%		80,814	4.6	%		92,349	5.2	%		1,765,296

Total	$	108,052	1.1	%	$	164,077	1.7	%	$	209,339	2.2	%	$	9,436,235

Loan Portfolio Aging (excluding covered assets⁽¹⁾)
Unaudited
(Dollars in thousands)

As of September 30, 2012	Current			30-59 Days Past Due			60-89 Days Past Due			90 Days Past Due and Accruing		Nonaccrual			Total Loans

Loan balances:
Commercial	$	6,035,858		$	6,141		$	1,129		$	—	$	61,182		$	6,104,310
Commercial real estate		2,517,321			5,232			3,588			—		88,057			2,614,198
Construction		162,167			—			—			—		557			162,724
Residential real estate		346,697			240			655			—		12,502			360,094
Personal and home equity		362,857			2,072			1,569			—		17,597			384,095

Total loans	$	9,424,900		$	13,685		$	6,941		$	—	$	179,895		$	9,625,421

Aging as a percent of loan balance:
Commercial		98.88	%		0.10	%		0.02	%		—		1.00	%		100.00	%
Commercial real estate		96.29	%		0.20	%		0.14	%		—		3.37	%		100.00	%
Construction		99.66	%		—			—			—		0.34	%		100.00	%
Residential real estate		96.28	%		0.07	%		0.18	%		—		3.47	%		100.00	%
Personal and home equity		94.47	%		0.54	%		0.41	%		—		4.58	%		100.00	%

Total loans		97.92	%		0.14	%		0.07	%		—		1.87	%		100.00	%

	3Q12			2Q12			1Q12			4Q11			3Q11

Nonaccrual loans:
Commercial	$	61,182		$	59,841		$	40,186		$	65,958		$	61,399
Commercial real estate		88,057			119,444			159,255			133,257			168,078
Construction		557			555			2,781			21,879			29,997
Residential real estate		12,502			11,028			12,069			14,589			18,007
Personal and home equity		17,597			18,471			18,931			24,169			27,266

Total	$	179,895		$	209,339		$	233,222		$	259,852		$	304,747

Nonaccrual loans as a percent of total loan type:
Commercial		1.00	%		1.01	%		0.73	%		1.24	%		1.22	%
Commercial real estate		3.37	%		4.55	%		5.55	%		4.96	%		6.46	%
Construction		0.34	%		0.32	%		2.18	%		7.62	%		9.50	%
Residential real estate		3.47	%		3.34	%		3.91	%		4.91	%		5.85	%
Personal and home equity		4.58	%		4.59	%		4.59	%		5.84	%		6.50	%

Total		1.87	%		2.22	%		2.53	%		2.88	%		3.51	%

Loan Portfolio Aging (excluding covered assets⁽¹⁾) (Cont.)
Unaudited
(Dollars in thousands)

	3Q12			2Q12			1Q12			4Q11			3Q11

Loans past due 60-89 days and still accruing:
Commercial	$	1,129		$	5,064		$	3,963		$	923		$	101
Commercial real estate		3,588			2,543			2,081			9,777			8,801
Construction		—			—			68			2,381			—
Residential real estate		655			21			1,135			645			2,864
Personal and home equity		1,569			1,017			253			809			1,016

Total	$	6,941		$	8,645		$	7,500		$	14,535		$	12,782

Loans past due 60-89 days and still accruing as a percent of total loan type:
Commercial		0.02	%		0.09	%		0.07	%		0.02	%		*
Commercial real estate		0.14	%		0.10	%		0.07	%		0.36	%		0.34	%
Construction		—			—			0.05	%		0.83	%		—
Residential real estate		0.18	%		0.01	%		0.37	%		0.22	%		0.93	%
Personal and home equity		0.41	%		0.25	%		0.06	%		0.20	%		0.24	%

Total		0.07	%		0.09	%		0.08	%		0.16	%		0.15	%
Loans past due 30-59 days and still accruing:
Commercial	$	6,141		$	901		$	3,216		$	6,018		$	3,529
Commercial real estate		5,232			1,314			6,590			3,523			5,884
Construction		—			—			—			—			342
Residential real estate		240			341			4,960			3,800			7
Personal and home equity		2,072			1,983			1,754			446			776

Total	$	13,685		$	4,539		$	16,520		$	13,787		$	10,538

Loans past due 30-59 days and still accruing as a percent of total loan type:
Commercial		0.10	%		0.01	%		0.06	%		0.11	%		0.07	%
Commercial real estate		0.20	%		0.05	%		0.23	%		0.13	%		0.23	%
Construction		—			—			—			—			0.11	%
Residential real estate		0.07	%		0.10	%		1.61	%		1.28	%		*
Personal and home equity		0.54	%		0.49	%		0.43	%		0.11	%		0.19	%

Total		0.14	%		0.05	%		0.18	%		0.15	%		0.12	%

Asset Quality (excluding covered assets⁽¹⁾)
Unaudited
(Dollars in thousands)

	$10.0 Million or More		$5.0 to $9.9 Million		$3.0 to $4.9 Million		$1.5 to $2.9 Million		Under $1.5 Million		Total

As of September 30, 2012
Amount:
Commercial	$	45,603	$	—	$	7,535	$	3,107	$	4,937	$	61,182
Commercial real estate		31,426		12,528		7,371		19,549		17,183		88,057
Construction		—		—		—		—		557		557
Residential real estate		—		—		4,789		—		7,713		12,502
Personal and home equity		—		—		3,848		—		13,749		17,597

Total	$	77,029	$	12,528	$	23,543	$	22,656	$	44,139	$	179,895

Number of borrowers:
Commercial		3		—		2		2		29		36
Commercial real estate		2		2		2		9		35		50
Construction		—		—		—		—		2		2
Residential real estate		—		—		1		—		28		29
Personal and home equity		—		—		1		—		46		47

Total		5		2		6		11		140		164

As of June 30, 2012
Amount:
Commercial	$	31,535	$	—	$	11,407	$	8,792	$	8,107	$	59,841
Commercial real estate		63,709		6,409		6,984		12,220		30,122		119,444
Construction		—		—		—		—		555		555
Residential real estate		—		—		4,789		—		6,239		11,028
Personal and home equity		—		—		3,848		—		14,623		18,471

Total	$	95,244	$	6,409	$	27,028	$	21,012	$	59,646	$	209,339

Number of borrowers:
Commercial		2		—		3		4		30		39
Commercial real estate		4		1		2		5		48		60
Construction		—		—		—		—		2		2
Residential real estate		—		—		1		—		21		22
Personal and home equity		—		—		1		—		43		44

Total		6		1		7		9		144		167

Asset Quality (excluding covered assets⁽¹⁾) (Cont.)
Unaudited
(Dollars in thousands)

	$10.0 Million or More		$5.0 to $9.9 Million		$3.0 to $4.9 Million		$1.5 to $2.9 Million		Under $1.5 Million		Total

As of September 30, 2012
Amount:
Commercial	$	24,992	$	14,700	$	—	$	—	$	4,629	$	44,321
Commercial real estate		—		5,136		—		4,169		2,641		11,946
Construction		—		—		—		—		—		—
Residential real estate		—		—		—		—		670		670
Personal and home equity		—		—		—		—		1,494		1,494

Total	$	24,992	$	19,836	$	—	$	4,169	$	9,434	$	58,431

Number of borrowers:
Commercial		2		2		—		—		5		9
Commercial real estate		—		1		—		2		6		9
Construction		—		—		—		—		—		—
Residential real estate		—		—		—		—		2		2
Personal and home equity		—		—		—		—		1		1

Total		2		3		—		2		14		21

As of June 30, 2012
Amount:
Commercial	$	60,733	$	14,190	$	—	$	2,799	$	4,496	$	82,218
Commercial real estate		—		5,157		—		4,211		3,609		12,977
Construction		—		—		—		—		—		—
Residential real estate		—		—		—		—		874		874
Personal and home equity		—		—		—		—		1,621		1,621

Total	$	60,733	$	19,347	$	—	$	7,010	$	10,600	$	97,690

Number of borrowers:
Commercial		4		2		—		1		10		17
Commercial real estate		—		1		—		2		8		11
Construction		—		—		—		—		—		—
Residential real estate		—		—		—		—		3		3
Personal and home equity		—		—		—		—		2		2

Total		4		3		—		3		23		33

Foreclosed Real Estate (OREO), excluding covered assets⁽¹⁾
Unaudited
(Dollars in thousands)

	Illinois			Georgia			Michigan			South Eastern⁽²⁾			Mid Western⁽³⁾			Other			Total

September 30, 2012
Single-family homes	$	13,180		$	—		$	—		$	—		$	146		$	241		$	13,567
Land parcels		22,997			2,830			1,757			7,820			5,039			—			40,443
Multi-family		1,835			—			—			—			193			—			2,028
Office/industrial		19,755			598			839			2,852			7,321			1,679			33,044
Retail		7,274			1,477			—			—			—			—			8,751

Total	$	65,041		$	4,905		$	2,596		$	10,672		$	12,699		$	1,920		$	97,833

% of Total		66	%		5	%		3	%		11	%		13	%		2	%		100	%
June 30, 2012
Single-family homes	$	16,431		$	—		$	—		$	—		$	1,062		$	241		$	17,734
Land parcels		24,104			2,996			1,956			8,133			6,178			—			43,367
Multi-family		1,918			—			—			—			108			—			2,026
Office/industrial		18,720			1,058			1,181			3,762			8,140			2,051			34,912
Retail		8,946			2,851			—			—			—			—			11,797

Total	$	70,119		$	6,905		$	3,137		$	11,895		$	15,488		$	2,292		$	109,836

% of Total		64	%		6	%		3	%		11	%		14	%		2	%		100	%
December 31, 2011
Single family homes	$	23,277		$	385		$	1,718		$	—		$	608		$	878		$	26,866
Land parcels		29,370			2,898			3,171			9,568			6,458			—			51,465
Multi-family		3,327			—			—			—			—			—			3,327
Office/industrial		18,430			1,656			548			3,762			9,228			3,395			37,019
Retail		4,501			1,615			936			—			—			—			7,052

Total	$	78,905		$	6,554		$	6,373		$	13,330		$	16,294		$	4,273		$	125,729

% of Total		63	%		5	%		5	%		11	%		13	%		3	%		100	%

Allowance for Loan Losses (excluding covered assets⁽¹⁾)
Unaudited
(Dollars in thousands)

	3Q12			2Q12			1Q12			4Q11			3Q11

Change in allowance for loan losses:
Balance at beginning of period	$	174,302		$	183,844		$	191,594		$	200,041		$	206,286
Loans charged-off:
Commercial		(4,062	)		(7,769	)		(9,549	)		(12,991	)		(5,039	)
Commercial real estate		(16,790	)		(17,924	)		(25,280	)		(24,083	)		(29,920	)
Construction		64			(828	)		(1,245	)		(1,526	)		(1,419	)
Residential real estate		(299	)		(1,006	)		(1,084	)		(1,203	)		(234	)
Home equity		(1,001	)		(4	)		(483	)		(1,340	)		(3,291	)
Personal		(1,006	)		(6,341	)		(2,085	)		(290	)		(2,083	)

Total charge-offs		(23,094	)		(33,872	)		(39,726	)		(41,433	)		(41,986	)

Recoveries on loans previously charged-off:
Commercial		919			634			1,679			830			2,278
Commercial real estate		544			4,150			1,882			1,410			969
Construction		594			1,664			41			109			29
Residential real estate		7			2			11			10			9
Home equity		117			314			26			300			12
Personal		229			163			702			544			103

Total recoveries		2,410			6,927			4,341			3,203			3,400

Net charge-offs		(20,684	)		(26,945	)		(35,385	)		(38,230	)		(38,586	)
Provisions charged to operating expense		13,241			17,403			27,635			29,783			32,341

Balance at end of period	$	166,859		$	174,302		$	183,844		$	191,594		$	200,041

Allocation of allowance for loan losses:
General allocated reserve:
Commercial	$	49,115		$	47,210		$	45,850		$	46,500		$	45,000
Commercial real estate		54,500			53,700			57,750			56,000			60,000
Construction		2,200			2,635			1,900			7,650			10,450
Residential real estate		5,100			5,200			5,400			5,400			5,800
Home equity		3,980			4,200			4,700			2,750			3,500
Personal		2,800			3,260			3,295			3,350			3,100

Total allocated		117,695			116,205			118,895			121,650			127,850
Specific reserve		49,164			58,097			64,949			69,944			72,191

Total	$	166,859		$	174,302		$	183,844		$	191,594		$	200,041

Allocation of reserve by a percent of total allowance for loan losses:
General allocated reserve:
Commercial		29	%		27	%		25	%		24	%		22	%
Commercial real estate		33	%		31	%		31	%		29	%		30	%
Construction		1	%		2	%		1	%		4	%		5	%
Residential real estate		3	%		3	%		3	%		3	%		3	%
Home equity		2	%		2	%		3	%		1	%		2	%
Personal		2	%		2	%		2	%		2	%		2	%

Total allocated		70	%		67	%		65	%		63	%		64	%
Specific reserve		30	%		33	%		35	%		37	%		36	%

Total		100	%		100	%		100	%		100	%		100	%

Allowance for loan losses to:
Total loans		1.73	%		1.85	%		1.99	%		2.13	%		2.31	%
Nonperforming loans		93	%		83	%		79	%		74	%		66	%

	09/30/12				06/30/12				03/31/12				12/31/11				09/30/11

	unaudited				unaudited				unaudited				audited				unaudited
Noninterest-bearing deposits	$	3,295,568	29	%	$	2,920,182	27	%	$	3,054,536	29	%	$	3,244,307	31	%	$	2,832,481	28	%
Interest-bearing demand deposits		893,194	8	%		785,879	7	%		714,522	7	%		595,238	6	%		611,293	6	%
Savings deposits		245,906	2	%		221,816	2	%		225,300	2	%		210,138	2	%		214,610	2	%
Money market accounts		4,135,689	37	%		3,924,206	37	%		4,122,532	40	%		4,168,082	40	%		4,178,087	41	%
Brokered deposits:
Traditional		562,717	5	%		667,454	6	%		191,023	2	%		20,499	*			60,665	1	%
Client CDARS⁽¹⁾		728,079	6	%		762,231	7	%		695,458	6	%		795,452	8	%		841,337	8	%
Non-client CDARS⁽¹⁾		—	—			54,750	1	%		75,000	1	%		—	—			—	—

Total brokered deposits		1,290,796	11	%		1,484,435	14	%		961,481	9	%		815,951	8	%		902,002	9	%
Time deposits		1,498,287	13	%		1,398,012	13	%		1,344,341	13	%		1,359,138	13	%		1,370,190	14	%

Total deposits	$	11,359,440	100	%	$	10,734,530	100	%	$	10,422,712	100	%	$	10,392,854	100	%	$	10,108,663	100	%

Client deposits⁽¹⁾	$	10,796,723	95	%	$	10,012,326	93	%	$	10,156,689	97	%	$	10,372,355	100	%	$	10,047,998	99	%

	Three Months Ended September 30,

	2012								2011
	Average Balance			Interest⁽¹⁾		Yield/ Rate			Average Balance			Interest⁽¹⁾		Yield/ Rate
Assets:
Federal funds sold and other short-term investments	$	376,212		$	248		0.26	%	$	373,705		$	231		0.24	%
Securities:
Taxable		2,119,890			14,033		2.65	%		1,935,653			15,196		3.14	%
Tax-exempt⁽²⁾		188,627			2,118		4.49	%		132,716			1,973		5.95	%

Total securities		2,308,517			16,151		2.80	%		2,068,369			17,169		3.32	%

Loans, excluding covered assets:
Commercial		5,951,785			68,711		4.52	%		5,079,470			60,936		4.69	%
Commercial real estate		2,645,713			26,924		3.98	%		2,511,749			26,590		4.14	%
Construction		174,044			1,659		3.73	%		361,764			3,492		3.78	%
Residential		369,694			3,739		4.05	%		315,244			3,411		4.33	%
Personal and home equity		397,174			3,484		3.49	%		429,632			3,879		3.58	%

Total loans, excluding covered assets⁽³⁾		9,538,410			104,517		4.29	%		8,697,859			98,308		4.43	%

Total interest-earning assets before covered assets⁽²⁾		12,223,139			120,916		3.89	%		11,139,933			115,708		4.08	%
Covered assets⁽⁴⁾		197,630			1,841		3.66	%		306,390			3,866		4.95	%

Total interest-earning assets⁽²⁾		12,420,769		$	122,757		3.88	%		11,446,323		$	119,574		4.11	%

Cash and due from banks		144,442								153,020
Allowance for loan and covered loan losses		(201,136	)							(232,501	)
Other assets		696,676								718,891

Total assets	$	13,060,751							$	12,085,733

Liabilities and Equity:
Interest-bearing demand deposits	$	895,825		$	958		0.43	%	$	597,741		$	625		0.42	%
Savings deposits		226,355			163		0.29	%		210,191			210		0.40	%
Money market accounts		4,014,467			4,043		0.40	%		4,183,937			5,146		0.49	%
Time deposits		1,450,904			4,108		1.13	%		1,335,757			4,087		1.21	%
Brokered deposits		1,406,748			1,752		0.50	%		1,083,815			1,808		0.66	%

Total interest-bearing deposits		7,994,299			11,024		0.55	%		7,411,441			11,876		0.64	%
Short-term borrowings		36,967			101		1.06	%		60,283			466		3.02	%
Long-term debt		374,793			5,495		5.82	%		405,880			5,463		5.34	%

Total interest-bearing liabilities		8,406,059			16,620		0.79	%		7,877,604			17,805		0.90	%

Noninterest-bearing demand deposits		3,124,473								2,747,760
Other liabilities		173,975								174,937
Equity		1,356,244								1,285,432

Total liabilities and equity	$	13,060,751							$	12,085,733

Net interest spread⁽²⁾⁽⁵⁾							3.09	%							3.21	%
Effect of noninterest-bearing funds							0.26	%							0.28	%

Net interest income/margin⁽²⁾⁽⁵⁾				$	106,137		3.35	%				$	101,769		3.49	%

	Three Months Ended September 30,								Three Months Ended June 30,

	2012								2012
	Average Balance			Interest⁽¹⁾		Yield/ Rate			Average Balance			Interest⁽¹⁾		Yield/ Rate
Assets:
Federal funds sold and other short-term investments	$	376,212		$	248		0.26	%	$	210,756		$	133		0.25	%
Securities:
Taxable		2,119,890			14,033		2.65	%		2,126,446			14,854		2.79	%
Tax-exempt⁽²⁾		188,627			2,118		4.49	%		171,426			2,035		4.75	%

Total securities		2,308,517			16,151		2.80	%		2,297,872			16,889		2.94	%

Loans, excluding covered assets:
Commercial		5,951,785			68,711		4.52	%		5,704,843			65,535		4.54	%
Commercial real estate		2,645,713			26,924		3.98	%		2,778,787			28,586		4.07	%
Construction		174,044			1,659		3.73	%		152,891			1,536		3.97	%
Residential		369,694			3,739		4.05	%		347,922			3,630		4.17	%
Personal and home equity		397,174			3,484		3.49	%		417,427			3,666		3.53	%

Total loans, excluding covered assets⁽³⁾		9,538,410			104,517		4.29	%		9,401,870			102,953		4.34	%

Total interest-earning assets before covered assets⁽²⁾		12,223,139			120,916		3.89	%		11,910,498			119,975		3.99	%
Covered assets⁽⁴⁾		197,630			1,841		3.66	%		237,781			2,189		3.66	%

Total interest-earning assets⁽²⁾		12,420,769		$	122,757		3.88	%		12,148,279		$	122,164		3.99	%

Cash and due from banks		144,442								148,174
Allowance for loan and covered loan losses		(201,136	)							(218,798	)
Other assets		696,676								702,533

Total assets	$	13,060,751							$	12,780,188

Liabilities and Equity:
Interest-bearing demand deposits	$	895,825		$	958		0.43	%	$	795,833		$	799		0.40	%
Savings deposits		226,355			163		0.29	%		225,335			161		0.29	%
Money market accounts		4,014,467			4,043		0.40	%		3,920,627			4,104		0.42	%
Time deposits		1,450,904			4,108		1.13	%		1,341,312			3,862		1.16	%
Brokered deposits		1,406,748			1,752		0.50	%		1,382,207			1,532		0.45	%

Total interest-bearing deposits		7,994,299			11,024		0.55	%		7,665,314			10,458		0.55	%
Short-term borrowings		36,967			101		1.06	%		250,774			123		0.19	%
Long-term debt		374,793			5,495		5.82	%		379,463			5,538		5.82	%

Total interest-bearing liabilities		8,406,059			16,620		0.79	%		8,295,551			16,119		0.78	%

Noninterest-bearing demand deposits		3,124,473								2,995,802
Other liabilities		173,975								156,656
Equity		1,356,244								1,332,179

Total liabilities and equity	$	13,060,751							$	12,780,188

Net interest spread⁽²⁾⁽⁵⁾							3.09	%							3.21	%
Effect of noninterest-bearing funds							0.26	%							0.25	%

Net interest income/margin⁽²⁾⁽⁵⁾				$	106,137		3.35	%				$	106,045		3.46	%

(1): Interest income included $6.5 million and $6.3 million in loan fees for the three months ended September 30, 2012 and June 30, 2012, respectively.
(2): Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-U.S. GAAP financial measure. Refer to Non-U.S. GAAP Financial Measures for a reconciliation of the effect of the tax-equivalent adjustment.
(3): Average loans on a nonaccrual basis for the recognition of interest income totaled $201.6 million and $222.1 million for the three months ended September 30, 2012 and June 30, 2012, respectively, and are included in loans for purposes of this analysis. Interest foregone on nonperforming loans was estimated to be approximately $2.1 million and $2.3 million for the three months ended September 30, 2012 and June 30, 2012, respectively, based on the average loan portfolio yield for the respective period.
(4): Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.
(5): Refer to Glossary of Terms for definition.

	Nine Months Ended September 30,

	2012								2011
	Average Balance			Interest⁽¹⁾		Yield/ Rate			Average Balance			Interest⁽¹⁾		Yield/ Rate
Assets:
Fed funds sold and other short-term investments	$	266,506		$	513		0.25	%	$	507,210		$	966		0.25	%
Securities:
Taxable		2,114,605			44,267		2.79	%		1,832,916			46,154		3.36	%
Tax-exempt⁽²⁾		170,887			6,134		4.79	%		140,471			6,353		6.03	%

Total securities		2,285,492			50,401		2.94	%		1,973,387			52,507		3.55	%

Loans, excluding covered assets:
Commercial		5,700,937			198,156		4.57	%		5,066,733			177,349		4.62	%
Commercial real estate		2,674,118			83,225		4.09	%		2,689,833			84,868		4.16	%
Construction		208,777			5,806		3.65	%		429,968			12,017		3.69	%
Residential		347,036			10,988		4.22	%		319,377			10,619		4.43	%
Personal and home equity		407,455			10,881		3.57	%		445,691			11,967		3.59	%

Total loans, excluding covered assets⁽³⁾		9,338,323			309,056		4.35	%		8,951,602			296,820		4.38	%

Total interest-earning assets before covered assets⁽²⁾		11,890,321			359,970		3.99	%		11,432,199			350,293		4.05	%
Covered assets⁽⁴⁾		233,213			5,983		3.39	%		330,443			13,392		5.36	%

Total interest-earning assets⁽²⁾		12,123,534		$	365,953		3.98	%		11,762,642		$	363,685		4.09	%

Cash and due from banks		144,614								160,169
Allowance for loan and covered loan losses		(214,619	)							(242,659	)
Other assets		702,724								681,592

Total assets	$	12,756,253							$	12,361,744

Liabilities and Equity:
Interest-bearing demand deposits	$	782,565		$	2,393		0.41	%	$	583,470		$	1,854		0.42	%
Savings deposits		223,290			480		0.29	%		204,208			618		0.40	%
Money market accounts		4,044,872			12,593		0.42	%		4,467,903			17,482		0.52	%
Time deposits		1,381,779			11,903		1.15	%		1,349,224			12,893		1.28	%
Brokered deposits		1,200,763			4,368		0.49	%		1,317,105			6,222		0.63	%

Total interest-bearing deposits		7,633,269			31,737		0.56	%		7,921,910			39,069		0.66	%
Short-term borrowings		183,778			366		0.26	%		81,561			1,859		3.01	%
Long-term debt		378,005			16,611		5.79	%		409,189			16,425		5.31	%

Total interest-bearing liabilities		8,195,052			48,714		0.79	%		8,412,660			57,353		0.91	%

Noninterest-bearing demand deposits		3,058,559								2,524,607
Other liabilities		167,972								162,697
Equity		1,334,670								1,261,780

Total liabilities and equity	$	12,756,253							$	12,361,744

Net interest spread⁽²⁾⁽⁵⁾							3.19	%							3.18	%
Effect of non interest-bearing funds							0.25	%							0.26	%

Net interest income/margin⁽²⁾⁽⁵⁾				$	317,239		3.44	%				$	306,332		3.44	%

This document contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. These non-U.S. GAAP measures include net interest income, net interest margin, net revenue, operating profit and efficiency ratio all on a fully taxable-equivalent basis; Tier 1 common equity to risk-weighted assets, tangible common equity to tangible assets, tangible equity to risk-weighted assets, tangible equity to tangible assets, and tangible book value. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry.

We use net interest income on a taxable-equivalent basis in calculating various performance measures by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments assuming a 35% tax rate. Management believes this measure to be the preferred industry measurement of net interest income as it enhances comparability to net interest income arising from taxable and tax-exempt sources, and accordingly believes that providing this measure may be useful for peer comparison purposes.

In addition to capital ratios defined by banking regulators, we also consider various measures when evaluating capital utilization and adequacy, including Tier 1 common equity to risk-weighted assets, tangible common equity to tangible assets, tangible equity to risk-weighted assets, tangible equity to tangible assets, and tangible book value. These calculations are intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. All of these measures exclude from capital the ending balances of goodwill and other intangibles while certain of these ratios exclude preferred capital components. Because U.S. GAAP does not include capital ratio measures, we believe there are no comparable U.S. GAAP financial measures to these ratios. We believe these non-U.S. GAAP financial measures are relevant because they provide information that is helpful in assessing the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of our capitalization to other companies. However, because there are no standardized definitions for these ratios, our calculations may not be comparable with other companies, and the usefulness of these measures to investors may be limited.

Non-U.S. GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-U.S. GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under U.S. GAAP. As a result, we encourage readers to consider our Consolidated Financial Statements in their entirety and

not to rely on any single financial measure. The following table reconciles Non-U.S. GAAP financial measures to U.S. GAAP:

	Quarters Ended

	3Q12			2Q12			1Q12			4Q11			3Q11
Taxable-equivalent interest income
U.S. GAAP net interest income	$	105,408		$	105,346		$	104,376		$	102,982		$	101,089
Taxable-equivalent adjustment		729			699			680			671			680

Taxable-equivalent net interest income (a)	$	106,137		$	106,045		$	105,056		$	103,653		$	101,769

Average Earning Assets (b)	$	12,420,769		$	12,148,279		$	11,796,499		$	11,696,741		$	11,446,323
Net Interest Margin ((a) annualized) / (b)		3.35	%		3.46	%		3.53	%		3.48	%		3.49	%
Net Revenue
Taxable-equivalent net interest income (a)	$	106,137		$	106,045		$	105,056		$	103,653		$	101,769
U.S. GAAP non-interest income		27,837			26,246			27,504			25,393			27,635

Net revenue (c)	$	133,974		$	132,291		$	132,560		$	129,046		$	129,404

Operating Profit
U.S. GAAP income before income taxes	$	38,006		$	30,696		$	23,950		$	20,534		$	21,075
Provision for loan and covered loan losses		13,509			17,038			27,701			31,611			32,615
Taxable-equivalent adjustment		729			699			680			671			680

Operating profit	$	52,244		$	48,433		$	52,331		$	52,816		$	54,370

Efficiency Ratio
U.S. GAAP non-interest expense (d)	$	81,730		$	83,858		$	80,229		$	76,230		$	75,034
Net revenue (c)	$	133,974		$	132,291		$	132,560		$	129,046		$	129,404
Efficiency ratio (d)/ (c)		61.00	%		63.39	%		60.52	%		59.07	%		57.98	%

Non-U.S. GAAP Financial Measures (Continued)
Unaudited
(Amounts in thousands, except per share data)

	Nine Months Ended September 30,

	2012			2011
Taxable-equivalent interest income
U.S. GAAP net interest income	$	315,130		$	304,145
Taxable-equivalent adjustment		2,109			2,187

Taxable-equivalent net interest income (a)	$	317,239		$	306,332

Average Earning Assets (b)	$	12,123,534		$	11,762,642
Net Interest Margin ((a) annualized) / (b)		3.44	%		3.44	%
Net Revenue
Taxable-equivalent net interest income (a)	$	317,239		$	306,332
U.S. GAAP non-interest income		81,587			72,854

Net revenue (c)	$	398,826		$	379,186

Operating Profit
U.S. GAAP income before income taxes	$	92,652		$	49,666
Provision for loan and covered loan losses		58,248			101,286
Taxable-equivalent adjustment		2,109			2,187

Operating profit	$	153,009		$	153,139

Efficiency Ratio
U.S. GAAP non-interest expense (d)	$	245,817		$	226,047
Net revenue (c)	$	398,826		$	379,186
Efficiency ratio (d)/ (c)		61.64	%		59.61	%

Non-U.S. GAAP Financial Measures (Continued)
Unaudited
(Amounts in thousands, except per share data)

	Quarters Ended

	3Q12			2Q12			1Q12			4Q11			3Q11
Tier 1 Common Capital
U.S. GAAP total equity	$	1,363,440		$	1,334,154		$	1,312,154		$	1,296,752		$	1,286,176
Trust preferred securities		244,793			244,793			244,793			244,793			244,793
Less: accumulated other comprehensive income, net of tax		55,818			50,987			47,152			46,697			46,051
Less: goodwill		94,534			94,546			94,559			94,571			94,584
Less: other intangibles		13,500			14,152			14,683			15,353			15,715

Tier 1 risk-based capital		1,444,381			1,419,262			1,400,553			1,384,924			1,374,619
Less: preferred stock		241,585			241,185			240,791			240,403			240,020
Less: trust preferred securities		244,793			244,793			244,793			244,793			244,793

Tier 1 common capital (e)	$	958,003		$	933,284		$	914,969		$	899,728		$	889,806

Tangible Common Equity
U.S. GAAP total equity	$	1,363,440		$	1,334,154		$	1,312,154		$	1,296,752		$	1,286,176
Less: goodwill		94,534			94,546			94,559			94,571			94,584
Less: other intangibles		13,500			14,152			14,683			15,353			15,715

Tangible equity (f)		1,255,406			1,225,456			1,202,912			1,186,828			1,175,877
Less: preferred stock		241,585			241,185			240,791			240,403			240,020

Tangible common equity (g)	$	1,013,821		$	984,271		$	962,121		$	946,425		$	935,857

Tangible Assets
U.S. GAAP total assets	$	13,278,554		$	12,942,176		$	12,623,164		$	12,416,870		$	12,019,861
Less: goodwill		94,534			94,546			94,559			94,571			94,584
Less: other intangibles		13,500			14,152			14,683			15,353			15,715

Tangible assets (h)	$	13,170,520		$	12,833,478		$	12,513,922		$	12,306,946		$	11,909,562

Risk-weighted Assets (i)	$	11,804,578		$	11,588,371		$	11,374,212		$	11,191,298		$	10,665,256
Period-end Common Shares Outstanding (j)		72,436			72,424			72,415			71,745			71,789
Ratios:
Tier 1 common equity to risk-weighted assets (e) / (i)		8.12	%		8.05	%		8.04	%		8.04	%		8.34	%
Tangible equity to tangible assets (f) / (h)		9.53	%		9.55	%		9.61	%		9.64	%		9.87	%
Tangible equity to risk-weighted assets (f) / (i)		10.63	%		10.57	%		10.58	%		10.60	%		11.03	%
Tangible common equity to tangible assets (g) / (h)		7.70	%		7.67	%		7.69	%		7.69	%		7.86	%
Tangible book value (g) / (j)	$	14.00		$	13.59		$	13.29		$	13.19		$	13.04

Assets under management and administration ("AUMA")—Assets held in trust where we serve as trustee or in accounts where we make investment decisions on behalf of clients. AUMA also includes non-managed assets we hold in custody for clients or for which we receive fees for advisory or brokerage services. We do not include these assets on our Consolidated Balance Sheets.

Book value—Total common equity divided by outstanding shares of common stock at end of period.

CDARS® deposit program—is a deposit services arrangement that effectively achieves FDIC deposit insurance for jumbo deposit relationships. These deposits are classified as brokered deposits for regulatory deposit purposes; however, we classify certain of these deposits as client CDARS® due to the source being our client relationships and are, therefore, not traditional 'brokered' deposits. We also participate in a non-client CDARS® program that is more like a traditional brokered deposit program.

Client deposits—Total deposits, net of traditional brokered deposits and non-client CDARS®.

Covered assets—Assets acquired through an FDIC-assisted transaction that are subject to a loss share agreement and are presented separately on the Consolidated Balance Sheets.

Credit quality indicators—The Company has adopted an internal risk rating policy in which each loan is rated for credit quality with a numerical rating of 1 through 8. Loans rated 5 and better (1-5 ratings, inclusive) are credits that exhibit acceptable financial performance, cash flow, and leverage. If any risk exists, we attempt to mitigate by structure, collateral, monitoring, or other meaningful controls. Credits rated 6 are considered special mention as these credits demonstrate potential weakness and that if left unresolved, may result in deterioration in the Company's credit position and/or the repayment prospects for the credit. Borrowers rated special mention may exhibit adverse operating trends, high leverage, tight liquidity or other credit concerns. Potential problem loans have a risk rating of 7 and are considered inadequately protected by the current net worth and paying capacity of the obligor, the collateral pledged, or guarantors. These loans generally have a well defined weakness or weaknesses that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not resolved. Nonperforming loans include nonaccrual loans risk rated 7 or 8 and have all the weaknesses inherent in a 7-rated potential problem loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Special mention, potential problem and nonperforming loans are reviewed at minimum on a quarterly basis, while all other rated credits are reviewed as the situation warrants.

Credit valuation adjustment ("CVA")—An adjustment may need to be incorporated into the valuation of derivative instruments for nonperformance risk to include the counterparty's credit risk and the Company's own credit risk. This adjustment is referred to as the CVA. The CVA represents the credit component of fair value with regard to both client-based trades and the related matched trades with interbank dealer counterparties.

Efficiency ratio—Total non-interest expense divided by the sum of net interest income on a tax equivalent basis and non-interest income. This is a non-U.S. GAAP financial measure.

Fee revenue as percent of total revenue ratio—Total non-interest income less net securities gains (losses) divided by the sum of net interest income and non-interest income less net securities gains (losses).

U.S. GAAP—Accounting principles generally accepted in the United States of America.

Net interest margin—Expressed as a percentage, net interest margin is a ratio computed as annualized taxable-equivalent net interest income divided by average interest-earning assets. The annualization of net interest income for the quarterly yield takes into consideration the interest payment convention at the product level. This is a non-U.S. GAAP financial measure.

Net interest spread—The difference between the average yield earned on interest-earning assets on a taxable-equivalent basis and the average rate paid for interest-bearing liabilities.

Net overhead ratio—Total non-interest expense less non-interest income divided by average total assets.

Net revenue—The sum of taxable equivalent net interest income and non-interest income. This is a non-U.S. GAAP financial measure.

Non-U.S. GAAP—Certain financial measures within this document that are not formally defined by U.S. GAAP or codified in the federal banking regulations. A reconciliation of these non-U.S. GAAP financial measures may be found on the previous pages.

Operating profit—The sum of U.S. GAAP income before income taxes, provision for loan and covered loan losses and taxable-equivalent adjustment. This is a non-U.S. GAAP financial measure.

Risk-weighted assets—Computed by the assignment of specific risk-weights (as currently defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Tangible book value—Total common equity less goodwill and other intangibles divided by outstanding shares of common stock at end of period. This is a non-U.S. GAAP financial measure.

Tangible common equity to tangible assets ratio—Tangible common equity divided by tangible assets, where tangible common equity equals total equity less preferred stock, goodwill and other intangible assets and tangible assets equals total assets less goodwill and other intangible assets. This is a non-U.S. GAAP financial measure.

Taxable-equivalent interest income—The interest income earned on certain assets is completely or partially exempt from Federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under U.S. GAAP on the Consolidated Income Statement.

Tier 1 common capital—Tier 1 risk-based capital, less preferred equity, less trust preferred capital securities, and less noncontrolling interests.

Tier 1 common capital ratio—Tier 1 common capital divided by period-end risk-weighted assets. This is a non-U.S. GAAP financial measure and for purposes of our presentation we calculate risk-weighted assets under current requirements and not under the recently proposed rules issued by banking regulators.

Tier 1 risk-based capital—Total equity, plus trust preferred capital securities, plus certain noncontrolling interests that are held by others; less goodwill and certain other intangible assets, less equity investments in nonfinancial companies, less ineligible servicing assets, less disallowed deferred

tax assets and less net unrealized holding gains (losses) on available for sale equity securities, available for sale debt securities, and cash flow hedge derivatives.

Tier 1 risk-based capital ratio—Tier 1 risk-based capital divided by period-end risk-weighted assets.

Leverage ratio—Tier 1 risk-based capital divided by adjusted average total assets.

Total risk-based capital—Tier 1 risk-based capital plus qualifying subordinated debt, other noncontrolling interest not qualified as Tier 1, eligible gains on available-for-sale equity securities and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio—Total risk-based capital divided by period-end risk-weighted assets.

Transformational and legacy portfolios—We aggregate loans by originating line of business for reserve purposes because of observable similarities in the performance experience of loans underwritten by the business units. Loans originated by the business units that existed prior to the strategic changes in 2007 are considered "legacy" loans. Loans originated by a business unit that was established in connection with or following the business transformation plan are considered "transformational" loans. Renewals or restructurings of legacy loans may continue to be evaluated as legacy loans depending on the structure or defining characteristics of the new transaction. The Company has implemented a line of business model that has reorganized the legacy business units so that after 2009, all new loan originations are considered transformational.

	September 30, 2012							June 30, 2012							December 31, 2011

	Number of Properties		Amount		% of Total			Number of Properties		Amount		% of Total			Number of Properties		Amount		% of Total
Single-family homes		54	$	13,567		14	%		58	$	17,734		16	%		71	$	26,866		21	%
Land parcels		244		40,443		41	%		273		43,367		39	%		262		51,465		41	%
Multi-family		10		2,028		2	%		8		2,026		2	%		14		3,327		3	%
Office/industrial		42		33,044		34	%		45		34,912		32	%		44		37,019		29	%
Retail		8		8,751		9	%		23		11,797		11	%		9		7,052		6	%

Total		358	$	97,833		100	%		407	$	109,836		100	%		400	$	125,729		100	%