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Table of Contents

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|                               |
|-------------------------------|
|                               |  |  |
| Part I. Financial Information | Page No. |
| Item 1.                       | Financial  Statements: |   |
|                          | Consolidated Condensed Balance Sheets | 3 |
|                          | Consolidated Condensed Statements of Income | 4 |
|                          | Consolidated Condensed Statements of Comprehensive Income | 5 |
|                          | Consolidated Condensed Statement of Stockholders' Equity | 6 |
|                          | Consolidated Condensed Statements of Cash Flows | 7 |
|                          | Notes to Consolidated Condensed Financial Statements | 8 |
| Item 2.                       | Management's Discussion and Analysis of Financial Condition and Results of Operations | 39 |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk | 53 |
| Item 4.                       | Controls and Procedures | 54 |
|                          |   |   |
| Part II. Other Information    |   |
| Item 1.                       | Legal Proceedings | 55 |
| Item 1A.                      | Risk Factors | 55 |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds | 55 |
| Item 3.                       | Defaults Upon Senior Securities | 55 |
| Item 4.                       | Mine Safety Disclosures | 55 |
| Item 5.                       | Other Information | 55 |
| Item 6.                       | Exhibits | 56 |
|                          | Signatures | 57 |
|                          | Index to Exhibits | 58 |

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Table of Contents

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |
|                                                                              | June 30, 2016 |  | December 31, 2015 |
|                                                                              | (Unaudited) |  |
| ASSETS                                                                       |   |  |   |
| Cash and cash equivalents                                                    | $ | 120,471 |  |  | $ | 102,170 |  |
| Interest-bearing time deposits                                               | 62,533 |  |  | 32,315 |  |
| Investment securities available for sale                                     | 658,829 |  |  | 658,400 |  |
| Investment securities held to maturity (fair value of $665,066 and $632,380) | 638,972 |  |  | 618,599 |  |
| Loans held for sale                                                          | 18,854 |  |  | 9,894 |  |
| Loans, net of allowance for loan losses of $62,186 and $62,453          | 4,729,243 |  |  | 4,631,369 |  |
| Premises and equipment                                                       | 95,170 |  |  | 97,648 |  |
| Federal Reserve and Federal Home Loan Bank stock                             | 18,096 |  |  | 37,633 |  |
| Interest receivable                                                          | 23,351 |  |  | 24,415 |  |
| Core deposit intangibles                                                     | 16,821 |  |  | 16,635 |  |
| Goodwill                                                                     | 244,000 |  |  | 243,129 |  |
| Cash surrender value of life insurance                                       | 201,417 |  |  | 200,539 |  |
| Other real estate owned                                                      | 13,219 |  |  | 17,257 |  |
| Tax asset, deferred and receivable                                           | 32,547 |  |  | 46,977 |  |
| Other assets                                                                 | 32,895 |  |  | 24,023 |  |
| TOTAL ASSETS                                                                 | $ | 6,906,418 |  |  | $ | 6,761,003 |  |
| LIABILITIES                                                                  |   |  |   |
| Deposits:                                                                    |   |  |   |
| Noninterest-bearing                                                          | $ | 1,253,747 |  |  | $ | 1,266,027 |  |
| Interest-bearing                                                             | 4,153,807 |  |  | 4,023,620 |  |
| Total Deposits                                                               | 5,407,554 |  |  | 5,289,647 |  |
| Borrowings:                                                                  |   |  |   |
| Federal funds purchased                                                      | 20,000 |  |  | 49,721 |  |
| Securities sold under repurchase agreements                                  | 140,777 |  |  | 155,325 |  |
| Federal Home Loan Bank advances                                              | 268,579 |  |  | 235,652 |  |
| Subordinated debentures and term loans                                       | 127,678 |  |  | 127,846 |  |
| Total Borrowings                                                             | 557,034 |  |  | 568,544 |  |
| Interest payable                                                             | 3,051 |  |  | 3,092 |  |
| Other liabilities                                                            | 51,229 |  |  | 49,211 |  |
| Total Liabilities                                                            | 6,018,868 |  |  | 5,910,494 |  |
| COMMITMENTS AND CONTINGENT LIABILITIES                                       |  |  |  |  |  |
| STOCKHOLDERS' EQUITY                                                         |  |  |  |
| Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:      |   |  |   |
| Authorized - 600 shares                                                      |   |  |   |
| Issued and outstanding - 125 shares                                          | 125 |  |  | 125 |  |
| Common Stock, $.125 stated value:                                            |   |  |   |
| Authorized - 50,000,000 shares                                               |   |  |   |
| Issued and outstanding - 40,772,896 and 40,664,259 shares                    | 5,097 |  |  | 5,083 |  |
| Additional paid-in capital                                                   | 505,725 |  |  | 504,530 |  |
| Retained earnings                                                            | 369,568 |  |  | 342,133 |  |
| Accumulated other comprehensive income (loss)                                | 7,035 |  |  | (1,362 | ) |
| Total Stockholders' Equity                                                   | 887,550 |  |  | 850,509 |  |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                   | $ | 6,906,418 |  |  | $ | 6,761,003 |  |

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Table of Contents

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|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|                                                                  | 2016 |   | 2015 |   | 2016 |   | 2015 |
| INTEREST INCOME                                                       |   |   |   |   |   |   |   |
| Loans receivable:                                                     |   |   |   |   |   |   |   |
| Taxable                                                               | $ | 52,099 |  |   | $ | 45,320 |  |   | $ | 102,588 |  |   | $ | 88,871 |  |
| Tax exempt                                                            | 1,465 |  |   | 736 |  |   | 2,780 |  |   | 984 |  |
| Investment securities:                                                |   |   |   |   |   |   |   |
| Taxable                                                               | 4,202 |  |   | 4,425 |  |   | 8,530 |  |   | 9,148 |  |
| Tax exempt                                                            | 4,583 |  |   | 4,231 |  |   | 9,092 |  |   | 8,066 |  |
| Deposits with financial institutions                                  | 122 |  |   | 31 |  |   | 228 |  |   | 68 |  |
| Federal Reserve and Federal Home Loan Bank stock                      | 233 |  |   | 459 |  |   | 713 |  |   | 1,009 |  |
| Total Interest Income                                                 | 62,704 |  |   | 55,202 |  |   | 123,931 |  |   | 108,146 |  |
| INTEREST EXPENSE                                                      |   |   |   |   |   |   |   |
| Deposits                                                              | 4,039 |  |   | 3,686 |  |   | 8,102 |  |   | 7,202 |  |
| Federal funds purchased                                               | 7 |  |   | 19 |  |   | 35 |  |   | 42 |  |
| Securities sold under repurchase agreements                           | 92 |  |   | 90 |  |   | 192 |  |   | 168 |  |
| Federal Home Loan Bank advances                                       | 818 |  |   | 706 |  |   | 1,614 |  |   | 1,397 |  |
| Subordinated debentures and term loans                                | 1,786 |  |   | 1,670 |  |   | 3,571 |  |   | 3,330 |  |
| Total Interest Expense                                                | 6,742 |  |   | 6,171 |  |   | 13,514 |  |   | 12,139 |  |
| NET INTEREST INCOME                                                   | 55,962 |  |   | 49,031 |  |   | 110,417 |  |   | 96,007 |  |
| Provision for loan losses                                             | 790 |  |   | 417 |  |   | 1,340 |  |   | 417 |  |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                   | 55,172 |  |   | 48,614 |  |   | 109,077 |  |   | 95,590 |  |
| OTHER INCOME                                                          |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                   | 4,416 |  |   | 4,090 |  |   | 8,561 |  |   | 7,638 |  |
| Fiduciary activities                                                  | 2,376 |  |   | 2,309 |  |   | 4,870 |  |   | 4,816 |  |
| Other customer fees                                                   | 4,695 |  |   | 4,602 |  |   | 9,754 |  |   | 8,269 |  |
| Commission income                                                     |  |  |   | 1,815 |  |   |  |  |   | 4,143 |  |
| Earnings on cash surrender value of life insurance                    | 1,297 |  |   | 640 |  |   | 2,773 |  |   | 1,387 |  |
| Net gains and fees on sales of loans                                  | 1,717 |  |   | 1,781 |  |   | 3,177 |  |   | 3,270 |  |
| Net realized gains (losses) on sales of available for sale securities | 706 |  |   | (93 | ) |   | 1,703 |  |   | 932 |  |
| Gain on sale of insurance subsidiary                                  |  |   | 8,265 |  |   |  |  |   | 8,265 |  |
| Other income                                                          | 1,178 |  |   | 697 |  |   | 1,384 |  |   | 785 |  |
| Total Other Income                                                    | 16,385 |  |   | 24,106 |  |   | 32,222 |  |   | 39,505 |  |
| OTHER EXPENSES                                                        |   |   |   |   |   |   |   |
| Salaries and employee benefits                                        | 25,570 |  |   | 26,434 |  |   | 52,907 |  |   | 50,975 |  |
| Net occupancy                                                         | 4,059 |  |   | 3,503 |  |   | 8,081 |  |   | 7,293 |  |
| Equipment                                                             | 3,243 |  |   | 2,840 |  |   | 6,481 |  |   | 5,406 |  |
| Marketing                                                             | 851 |  |   | 951 |  |   | 1,588 |  |   | 1,731 |  |
| Outside data processing fees                                          | 2,025 |  |   | 1,768 |  |   | 4,094 |  |   | 3,485 |  |
| Printing and office supplies                                          | 369 |  |   | 303 |  |   | 733 |  |   | 667 |  |
| Core deposit amortization                                             | 977 |  |   | 729 |  |   | 1,955 |  |   | 1,450 |  |
| FDIC assessments                                                      | 1,002 |  |   | 895 |  |   | 1,952 |  |   | 1,758 |  |
| Other real estate owned and foreclosure expenses                      | 915 |  |   | 845 |  |   | 1,666 |  |   | 1,241 |  |
| Professional and other outside services                               | 1,478 |  |   | 3,134 |  |   | 3,640 |  |   | 4,625 |  |
| Other expenses                                                        | 4,346 |  |   | 4,494 |  |   | 8,213 |  |   | 7,634 |  |
| Total Other Expenses                                                  | 44,835 |  |   | 45,896 |  |   | 91,310 |  |   | 86,265 |  |
| INCOME BEFORE INCOME TAX                                              | 26,722 |  |   | 26,824 |  |   | 49,989 |  |   | 48,830 |  |
| Income tax expense                                                    | 6,716 |  |   | 8,856 |  |   | 12,290 |  |   | 14,690 |  |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS                           | $ | 20,006 |  |   | $ | 17,968 |  |   | $ | 37,699 |  |   | $ | 34,140 |  |
| Per Share Data:                                                       |   |   |   |   |   |   |   |
| Basic Net Income Available to Common Stockholders                     | $ | 0.50 |  |   | $ | 0.47 |  |   | $ | 0.93 |  |   | $ | 0.90 |  |
| Diluted Net Income Available to Common Stockholders                   | $ | 0.49 |  |   | $ | 0.47 |  |   | $ | 0.92 |  |   | $ | 0.90 |  |
| Cash Dividends Paid                                                   | $ | 0.14 |  |   | $ | 0.11 |  |   | $ | 0.25 |  |   | $ | 0.19 |  |
| Average Diluted Shares Outstanding (in thousands)                     | 40,969 |  |   | 38,043 |  |   | 40,941 |  |   | 38,022 |  |

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|                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                            | Three Months EndedJune 30, | Six Months EndedJune 30, |
|                                                                                                                                       | 2016 |   | 2015 | 2016 |  | 2015 |
| Net income                                                                                                                                 | $ | 20,006 |  |  | $ | 17,968 |  | $ | 37,699 |  |  | $ | 34,140 |  |
| Other comprehensive income net of tax:                                                                                                     |   |  |   |   |  |   |
| Unrealized holding gain (loss) on securities available for sale arising during the period, net of tax of $3,096, $2,904, $5,861 and $2,376 | 5,750 |  |  | (5,393 | ) | 10,885 |  |  | (4,413 | ) |
| Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $284, $282, $969 and $165                              | (529 | ) |  | 525 |  | (1,798 | ) |  | (304 | ) |
| Reclassification adjustment for net losses (gains) included in net income, net of tax of $136, $158, $371 and $77                          | (252 | ) |  | 293 |  | (690 | ) |  | (143 | ) |
|                                                                                                                                       | 4,969 |  |  | (4,575 | ) | 8,397 |  |  | (4,860 | ) |
| Comprehensive income                                                                                                                       | $ | 24,975 |  |  | $ | 13,393 |  | $ | 46,096 |  |  | $ | 29,280 |  |

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|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                 | Preferred |  | Common Stock |  | Additional |  |  |  | AccumulatedOther |  |  |
|                                                                 | Shares |  | Amount |  | Shares |  | Amount |  | Paid inCapital |  | RetainedEarnings |  | ComprehensiveIncome (Loss) |  | Total |
| Balances, December 31, 2015                                     | 125 |  |  | $ | 125 |  |  | 40,664,259 |  |  | $ | 5,083 |  |  | $ | 504,530 |  |  | $ | 342,133 |  |  | $ | (1,362 | ) |  | $ | 850,509 |  |
| Comprehensive income                                            |   |  |   |  |   |  |   |  |   |  |   |  |   |  |  |
| Net income                                                      |   |  |  |  |  |  |  |  |  |  | 37,699 |  |  |  |  | 37,699 |  |
| Other comprehensive income, net of tax                          |   |  |  |  |  |  |  |  |  |  |  |  | 8,397 |  |  | 8,397 |  |
| Cash dividends on common stock ($.25 per share)                 |   |  |  |  |   |  |   |  |   |  | (10,264 | ) |  |   |  | (10,264 | ) |
| Share-based compensation                                        |   |  |  |  | 106,290 |  |  | 13 |  |  | 1,222 |  |  |   |  |   |  | 1,235 |  |
| Stock issued under employee benefit plans                       |   |  |  |  | 10,536 |  |  | 1 |  |  | 215 |  |  |   |  |   |  | 216 |  |
| Stock issued under dividend reinvestment andstock purchase plan |   |  |  |  | 15,703 |  |  | 2 |  |  | 382 |  |  |   |  |   |  | 384 |  |
| Stock options exercised                                         |   |  |  |  | 13,828 |  |  | 2 |  |  | 212 |  |  |   |  |   |  | 214 |  |
| Stock redeemed                                                  |   |  |  |  | (37,720 | ) |  | (4 | ) |  | (836 | ) |  |   |  |   |  | (840 | ) |
| Balances, June 30, 2016                                         | 125 |  |  | $ | 125 |  |  | 40,772,896 |  |  | $ | 5,097 |  |  | $ | 505,725 |  |  | $ | 369,568 |  |  | $ | 7,035 |  |  | $ | 887,550 |  |

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|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Six Months Ended |
|                                                                              | June 30, 2016 |  | June 30, 2015 |
| Cash Flow From Operating Activities:                                              |   |  |   |
| Net income                                                                        | $ | 37,699 |  |  | $ | 34,140 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |  |   |
| Provision for loan losses                                                         | 1,340 |  |  | 417 |  |
| Depreciation and amortization                                                     | 3,604 |  |  | 3,123 |  |
| Change in deferred taxes                                                          | 5,571 |  |  | 2,341 |  |
| Share-based compensation                                                          | 1,235 |  |  | 1,130 |  |
| Tax benefit from stock options exercised                                          | (3 | ) |  | (35 | ) |
| Loans originated for sale                                                         | (199,281 | ) |  | (176,552 | ) |
| Proceeds from sales of loans                                                      | 190,321 |  |  | 175,492 |  |
| Gain on sale of insurance subsidiary                                              |  |  |  | (8,265 | ) |
| Gains on sales of securities available for sale                                   | (1,703 | ) |  | (932 | ) |
| Change in interest receivable                                                     | 1,064 |  |  | 396 |  |
| Change in interest payable                                                        | (41 | ) |  | (19 | ) |
| Other adjustments                                                                 | (5,237 | ) |  | 5,170 |  |
| Net cash provided by operating activities                                         | 34,569 |  |  | 36,406 |  |
| Cash Flows from Investing Activities:                                             |   |  |   |
| Net change in interest-bearing deposits                                           | (30,218 | ) |  | 21,773 |  |
| Purchases of:                                                                     |  |  |   |
| Securities available for sale                                                     | (96,873 | ) |  | (101,627 | ) |
| Securities held to maturity                                                       | (76,395 | ) |  | (55,415 | ) |
| Proceeds from sales of securities available for sale                              | 85,081 |  |  | 42,117 |  |
| Proceeds from maturities of:                                                      |  |  |   |
| Securities available for sale                                                     | 32,286 |  |  | 31,917 |  |
| Securities held to maturity                                                       | 54,810 |  |  | 44,035 |  |
| Change in Federal Reserve and Federal Home Loan Bank stock                        | 19,537 |  |  | 7,578 |  |
| Net change in loans                                                               | (102,735 | ) |  | (213,356 | ) |
| Net cash and cash equivalents paid in acquisition                                 |  |  |  | (12,004 | ) |
| Net cash received from sale of insurance subsidiary                               |  |  |  | 15,155 |  |
| Proceeds from the sale of other real estate owned                                 | 4,633 |  |  | 4,444 |  |
| Other adjustments                                                                 | (1,671 | ) |  | 1,464 |  |
| Net cash used in investing activities                                             | (111,545 | ) |  | (213,919 | ) |
| Cash Flows from Financing Activities:                                             |   |  |   |
| Net change in :                                                                   |   |  |   |
| Demand and savings deposits                                                       | 173,705 |  |  | 51,914 |  |
| Certificates of deposit and other time deposits                                   | (56,969 | ) |  | (8,357 | ) |
| Borrowings                                                                        | 279,518 |  |  | 200,467 |  |
| Repayment of borrowings                                                           | (290,687 | ) |  | (71,916 | ) |
| Cash dividends on common stock                                                    | (10,264 | ) |  | (7,246 | ) |
| Stock issued under employee benefit plans                                         | 216 |  |  | 231 |  |
| Stock issued under dividend reinvestment and stock purchase plans                 | 384 |  |  | 310 |  |
| Stock options exercised                                                           | 211 |  |  | 619 |  |
| Tax benefit from stock options exercised                                          | 3 |  |  | 35 |  |
| Stock redeemed                                                                    | (840 | ) |  | (1,232 | ) |
| Net cash provided by financing activities                                         | 95,277 |  |  | 164,825 |  |
| Net Change in Cash and Cash Equivalents                                           | 18,301 |  |  | (12,688 | ) |
| Cash and Cash Equivalents, January 1                                              | 102,170 |  |  | 118,616 |  |
| Cash and Cash Equivalents, June 30                                           | $ | 120,471 |  |  | $ | 105,928 |  |
| Additional cash flow information:                                                 |   |  |   |
| Interest paid                                                                     | $ | 13,555 |  |  | $ | 12,129 |  |
| Income tax paid                                                                   | $ | 3,155 |  |  | $ | 3,000 |  |
| Loans transferred to other real estate owned                                      | $ | 320 |  |  | $ | 3,360 |  |
| Fixed assets transferred to other real estate owned                               | $ | 360 |  |   | $ | 1,003 |  |
| Non-cash investing activities using trade date accounting                         | $ | 4,414 |  |  | $ | 1,887 |  |
| In conjunction with the acquisition, liabilities were assumed as follows:         |   |   |   |
| Fair value of assets acquired                                                     |  |  |   | $ | 141,724 |  |
| Cash received (paid) in acquisition                                               |  |  |   | $ | (14,500 | ) |
| Less:  Common stock issued                                                        |  |  |   |  |  |
| Liabilities assumed                                                               | $ | — |  |   | $ | 127,224 |  |

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|                                        |
|----------------------------------------|
|                                        |  |  |  |  |
|                                   |   | Fair Value |
| Cash and cash equivalents              |   | $ | 4,068 |  |
| Interest-bearing time deposits         |   | 8,790 |  |
| Investment securities                  |   | 61,754 |  |
| Loans                                  |   | 316,929 |  |
| Premises and equipment                 |   | 13,946 |  |
| Federal Home Loan Bank stock           |   | 2,693 |  |
| Other real estate owned                |   | 5,613 |  |
| Interest receivable                    |   | 1,306 |  |
| Cash surrender value of life insurance |   | 28,188 |  |
| Other assets                           |   | 6,713 |  |
| Deposits                               |   | (383,718 | ) |
| Interest payable                       |   | (24 | ) |
| Federal Home Loan Bank Advances        |   | (24,884 | ) |
| Subordinated debentures                |   | (5,487 | ) |
| Other liabilities                      |   | (9,451 | ) |
| Net tangible assets acquired           |   | 26,436 |  |
| Core deposit intangible                |   | 5,342 |  |
| Goodwill                               |   | 38,624 |  |
| Purchase price                         |   | $ | 70,402 |  |

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|                                 |
|---------------------------------|
|                                 |  |  |  |  |
|                            |   | Fair Value |
| Cash and cash equivalents       |   | $ | 2,496 |  |
| Federal Funds sold              |   | 7,018 |  |
| Interest-bearing time deposits  |   | 922 |  |
| Loans                           |   | 110,625 |  |
| Premises and equipment          |   | 7,290 |  |
| Federal Home Loan Bank stock    |   | 855 |  |
| Interest receivable             |   | 292 |  |
| Other assets                    |   | 119 |  |
| Deposits                        |   | (105,326 | ) |
| Interest payable                |   | (29 | ) |
| Federal Home Loan Bank Advances |  | (18,958 | ) |
| Other liabilities               |   | (2,911 | ) |
| Net tangible assets acquired    |   | 2,393 |  |
| Core deposit intangible         |   | 981 |  |
| Goodwill                        |   | 11,126 |  |
| Purchase price                  |   | $ | 14,500 |  |

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Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | AmortizedCost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | FairValue |
| Available for sale at June 30, 2016                  |   |  |   |  |   |  |   |
| U.S. Government-sponsored agency securities          | $ | 100 |  |  | $ | 2 |  |  |  |  | $ | 102 |  |
| State and municipal                                  | 329,042 |  |  | 24,438 |  |  |  |  |  | 353,480 |  |
| U.S. Government-sponsored mortgage-backed securities | 292,822 |  |  | 8,469 |  |  | $ | 20 |  |  | 301,271 |  |
| Corporate obligations                                | 31 |  |  |  |  |  |  |  | 31 |  |
| Equity securities                                    | 3,882 |  |  | 63 |  |  |  |  | 3,945 |  |
| Total available for sale                             | 625,877 |  |  | 32,972 |  |  | 20 |  |  | 658,829 |  |
| Held to maturity at June 30, 2016                    |   |  |   |  |   |  |   |
| Federal agencies                                     | 28,980 |  |  | 34 |  |  | 5 |  |  | 29,009 |  |
| State and municipal                                  | 207,731 |  |  | 11,621 |  |  |  |  |  | 219,352 |  |
| U.S. Government-sponsored mortgage-backed securities | 402,261 |  |  | 14,444 |  |  |  |  |  | 416,705 |  |
| Total held to maturity                               | 638,972 |  |  | 26,099 |  |  | 5 |  |  | 665,066 |  |
| Total Investment Securities                          | $ | 1,264,849 |  |  | $ | 59,071 |  |  | $ | 25 |  |  | $ | 1,323,895 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | AmortizedCost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | FairValue |
| Available for sale at December 31, 2015              |   |  |   |  |   |  |   |
| U.S. Government-sponsored agency securities          | $ | 100 |  |  | $ | 4 |  |  |  |  | $ | 104 |  |
| State and municipal                                  | 291,730 |  |  | 14,241 |  |  | $ | 60 |  |  | 305,911 |  |
| U.S. Government-sponsored mortgage-backed securities | 342,550 |  |  | 4,234 |  |  | 518 |  |  | 346,266 |  |
| Corporate obligations                                | 31 |  |  |  |  |  |  |  | 31 |  |
| Equity securities                                    | 3,912 |  |  |  |  |  |  | 3,912 |  |
| Certificates of deposit                              | 2,176 |  |   |  |  |   |  |  |   | 2,176 |  |
| Total available for sale                             | 640,499 |  |  | 18,479 |  |  | 578 |  |  | 658,400 |  |
| Held to maturity at December 31, 2015                |   |  |   |  |   |  |   |
| State and municipal                                  | 219,767 |  |  | 6,982 |  |  | 15 |  |  | 226,734 |  |
| U.S. Government-sponsored mortgage-backed securities | 398,832 |  |  | 7,601 |  |  | 787 |  |  | 405,646 |  |
| Total held to maturity                               | 618,599 |  |  | 14,583 |  |  | 802 |  |  | 632,380 |  |
| Total Investment Securities                          | $ | 1,259,098 |  |  | $ | 33,062 |  |  | $ | 1,380 |  |  | $ | 1,290,780 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | Available for Sale |  | Held to Maturity |
|                                                 | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |
| Maturity Distribution at June 30, 2016:              |   |  |   |  |   |  |   |
| Due in one year or less                              | $ | 3,065 |  |  | $ | 3,086 |  |  | $ | 2,500 |  |  | $ | 2,532 |  |
| Due after one through five years                     | 19,909 |  |  | 21,060 |  |  | 42,528 |  |  | 44,205 |  |
| Due after five through ten years                     | 60,972 |  |  | 64,871 |  |  | 82,937 |  |  | 85,365 |  |
| Due after ten years                                  | 245,227 |  |  | 264,596 |  |  | 108,746 |  |  | 116,259 |  |
|                                                 | $ | 329,173 |  |  | $ | 353,613 |  |  | $ | 236,711 |  |  | $ | 248,361 |  |
| U.S. Government-sponsored mortgage-backed securities | 292,822 |  |  | 301,271 |  |  | 402,261 |  |  | 416,705 |  |
| Equity securities                                    | 3,882 |  |  | 3,945 |  |  |  |  |  |
| Total Investment Securities                          | $ | 625,877 |  |  | $ | 658,829 |  |  | $ | 638,972 |  |  | $ | 665,066 |  |

----

Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | Available for Sale |   | Held to Maturity |
|                                                 | Amortized Cost |   | Fair Value |   | Amortized Cost |   | Fair Value |
| Maturity Distribution at December 31, 2015           |   |   |   |   |   |   |   |
| Due in one year or less                              | $ | 4,658 |  |   | $ | 4,704 |  |   | $ | 4,144 |  |   | $ | 4,148 |  |
| Due after one through five years                     | 13,725 |  |   | 14,295 |  |   | 28,054 |  |   | 29,175 |  |
| Due after five through ten years                     | 52,878 |  |   | 55,375 |  |   | 81,483 |  |   | 83,646 |  |
| Due after ten years                                  | 220,600 |  |   | 231,672 |  |   | 106,086 |  |   | 109,765 |  |
|                                                 | $ | 291,861 |  |   | $ | 306,046 |  |   | $ | 219,767 |  |   | $ | 226,734 |  |
| U.S. Government-sponsored mortgage-backed securities | 342,550 |  |   | 346,266 |  |   | 398,832 |  |   | 405,646 |  |
| Equity securities                                    | 3,912 |  |   | 3,912 |  |   |  |   |  |
| Certificates of deposit                              | 2,176 |  |   | 2,176 |  |   |  |   |  |
| Total Investment Securities                          | $ | 640,499 |  |   | $ | 658,400 |  |   | $ | 618,599 |  |   | $ | 632,380 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Three Months EndedJune 30, |  | Six Months EndedJune 30, |
|                                                         | 2016 |  | 2015 |  | 2016 |   | 2015 |
| Sales and Redemptions of Available for Sale Securities: |   |  |   |  |   |   |   |
| Gross gains                                             | $ | 706 |  |  | $ | 7 |  |  | $ | 1,703 |  |   | $ | 1,032 |  |
| Gross losses                                            |  |  | 100 |  |  |   |   | 100 |  |

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                | Less than12 Months |  | 12 Months or Longer |  | Total |
|                                                                | FairValue |  | GrossUnrealizedLosses |  | FairValue |  | GrossUnrealizedLosses |  | FairValue |  | GrossUnrealizedLosses |
| Temporarily Impaired Available for Sale Securities at June 30, 2016 |   |  |   |  |   |  |   |  |   |  |   |
| U.S. Government-sponsored mortgage-backed securities                | 4,007 |  |  | $ | 15 |  |  | $ | 1,053 |  |  | $ | 5 |  |  | 5,060 |  |  | $ | 20 |  |
| Total Temporarily Impaired Available for Sale Securities            | 4,007 |  |  | 15 |  |  | 1,053 |  |  | 5 |  |  | 5,060 |  |  | 20 |  |
| Temporarily Impaired Held to Maturity Securities at June 30, 2016   |   |  |   |  |   |  |   |  |   |  |   |
| Federal agencies                                                    | 4,995 |  |  | 5 |  |  |  |  |  |  | 4,995 |  |  | 5 |  |
| Total Temporarily Impaired Held to Maturity Securities              | 4,995 |  |  | 5 |  |  |  |  |  |  | 4,995 |  |  | 5 |  |
| Total Temporarily Impaired Investment Securities                    | $ | 9,002 |  |  | $ | 20 |  |  | $ | 1,053 |  |  | $ | 5 |  |  | $ | 10,055 |  |  | $ | 25 |  |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Less than12 Months |  | 12 Months or Longer |  | Total |
|                                                                    | FairValue |  | GrossUnrealizedLosses |  | FairValue |  | GrossUnrealizedLosses |  | FairValue |  | GrossUnrealizedLosses |
| Temporarily Impaired Available for Sale Securities at December 31, 2015 |   |  |   |  |   |  |   |  |   |  |   |
| State and municipal                                                     | $ | 7,558 |  |  | $ | 60 |  |  |  |  |  |  | $ | 7,558 |  |  | $ | 60 |  |
| U.S. Government-sponsored mortgage-backed securities                    | 83,396 |  |  | 445 |  |  | $ | 2,101 |  |  | $ | 73 |  |  | 85,497 |  |  | 518 |  |
| Total Temporarily Impaired Available for Sale Securities                | 90,954 |  |  | 505 |  |  | 2,101 |  |  | 73 |  |  | 93,055 |  |  | 578 |  |
| Temporarily Impaired Held to Maturity Securities at December 31, 2015   |   |  |   |  |   |  |   |  |   |  |   |
| State and municipal                                                     |  |  |  |  |  |  | 1,982 |  |  | 15 |  |  | 1,982 |  |  | 15 |  |
| U.S. Government-sponsored mortgage-backed securities                    | 69,641 |  |  | 519 |  |  | 12,906 |  |  | 268 |  |  | 82,547 |  |  | 787 |  |
| Total Temporarily Impaired Held to Maturity Securities                  | 69,641 |  |  | 519 |  |  | 14,888 |  |  | 283 |  |  | 84,529 |  |  | 802 |  |
| Total Temporarily Impaired Investment Securities                        | $ | 160,595 |  |  | $ | 1,024 |  |  | $ | 16,989 |  |  | $ | 356 |  |  | $ | 177,584 |  |  | $ | 1,380 |  |

----

Table of Contents

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |
|                                                                                | June 30, 2016 |  | December 31, 2015 |
| Investments reported at less than historical cost:                             |   |  |   |
| Historical cost                                                                | $ | 10,081 |  |  | $ | 178,964 |  |
| Fair value                                                                     | $ | 10,055 |  |  | $ | 177,584 |  |
| Percent of the Corporation's available for sale and held to maturity portfolio | 0.8 | % |  | 13.9 | % |

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |
|                                                                                            | AccumulatedCredit Losses in2016 |  | AccumulatedCredit Losses in2015 |
| Credit losses on debt securities held:                                                          |   |  |   |
| Balance, January 1                                                                              | $ | — |  |  | $ | 500 |  |
| Reductions for previous other-than-temporary losses realized on securities sold during the year | — |  |  | (500 | ) |
| Balance, June 30                                                                                | $ | — |  |  | $ | — |  |

----

Table of Contents

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                         | June 30, 2016 |  | December 31, 2015 |
| Commercial and industrial loans                                                         | $ | 1,084,890 |  |  | $ | 1,057,075 |  |
| Agricultural production financing and other loans to farmers                            | 95,131 |  |  | 97,711 |  |
| Real estate loans:                                                                      |   |  |   |
| Construction                                                                            | 352,980 |  |  | 366,704 |  |
| Commercial and farmland                                                                 | 1,869,703 |  |  | 1,802,921 |  |
| Residential                                                                             | 758,870 |  |  | 786,105 |  |
| Home Equity                                                                             | 374,159 |  |  | 348,613 |  |
| Individuals' loans for household and other personal expenditures                        | 75,205 |  |  | 74,717 |  |
| Lease financing receivables, net of unearned income                                     | 388 |  |  | 588 |  |
| Other commercial loans                                                                  | 180,103 |  |  | 159,388 |  |
|              Loans                                                                 | $ | 4,791,429 |  |  | $ | 4,693,822 |  |
| Allowance for loan losses                                                               | (62,186 | ) |  | (62,453 | ) |
|              Net Loans | $ | 4,729,243 |  |  | $ | 4,631,369 |  |

----

Table of Contents

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | Three Months Ended June 30, 2016 |
|                       | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance for loan losses: |   |  |   |  |   |  |   |  |   |  |   |
| Balances, April 1          | $ | 26,264 |  |  | $ | 22,317 |  |  | $ | 2,647 |  |  | $ | 10,856 |  |  | $ | 2 |  |  | $ | 62,086 |  |
| Provision for losses       | 400 |  |  | 200 |  |  | 44 |  |  | 146 |  |  |  |  | 790 |  |
| Recoveries on loans        | 683 |  |  | 276 |  |  | 107 |  |  | 273 |  |  |  |  | 1,339 |  |
| Loans charged off          | (1,026 | ) |  | (513 | ) |  | (114 | ) |  | (376 | ) |  |  |  | (2,029 | ) |
| Balances, June 30, 2016    | $ | 26,321 |  |  | $ | 22,280 |  |  | $ | 2,684 |  |  | $ | 10,899 |  |  | $ | 2 |  |  | $ | 62,186 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | Six Months Ended June 30, 2016 |
|                       | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance for loan losses: |   |  |   |  |   |  |   |  |   |  |   |
| Balances, January 1        | $ | 26,478 |  |  | $ | 22,145 |  |  | $ | 2,689 |  |  | $ | 11,139 |  |  | $ | 2 |  |  | $ | 62,453 |  |
| Provision for losses       | 539 |  |  | 414 |  |  | 77 |  |  | 310 |  |  |  |  | 1,340 |  |
| Recoveries on loans        | 975 |  |  | 1,228 |  |  | 185 |  |  | 585 |  |  |  |  | 2,973 |  |
| Loans charged off          | (1,671 | ) |  | (1,507 | ) |  | (267 | ) |  | (1,135 | ) |  |  |  | (4,580 | ) |
| Balances, June 30, 2016    | $ | 26,321 |  |  | $ | 22,280 |  |  | $ | 2,684 |  |  | $ | 10,899 |  |  | $ | 2 |  |  | $ | 62,186 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Three Months Ended June 30, 2015 |
|                       | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance for loan losses: |   |  |   |  |   |  |   |  |   |  |   |
| Balances, April 1          | $ | 30,007 |  |  | $ | 16,383 |  |  | $ | 3,138 |  |  | $ | 13,269 |  |  | $ | 4 |  |  | $ | 62,801 |  |
| Provision for losses       | 1,190 |  |  | (502 | ) |  | (200 | ) |  | (72 | ) |  | 1 |  |  | 417 |  |
| Recoveries on loans        | 437 |  |  | 147 |  |  | 101 |  |  | 747 |  |  |  |  |  | 1,432 |  |
| Loans charged off          | (155 | ) |  | (200 | ) |  | (112 | ) |  | (1,633 | ) |  |  |  | (2,100 | ) |
| Balances, June 30, 2015    | $ | 31,479 |  |  | $ | 15,828 |  |  | $ | 2,927 |  |  | $ | 12,311 |  |  | $ | 5 |  |  | $ | 62,550 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | Six Months Ended June 30, 2015 |
|                       | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance for loan losses: |   |  |   |  |   |  |   |  |   |  |   |
| Balances, January 1        | $ | 28,824 |  |  | $ | 19,327 |  |  | $ | 2,658 |  |  | $ | 13,152 |  |  | $ | 3 |  |  | $ | 63,964 |  |
| Provision for losses       | 3,024 |  |  | (3,398 | ) |  | 327 |  |  | 462 |  |  | 2 |  |  | 417 |  |
| Recoveries on loans        | 887 |  |  | 559 |  |  | 179 |  |  | 879 |  |  |  |  |  | 2,504 |  |
| Loans charged off          | (1,256 | ) |  | (660 | ) |  | (237 | ) |  | (2,182 | ) |  |  |  | (4,335 | ) |
| Balances, June 30, 2015    | $ | 31,479 |  |  | $ | 15,828 |  |  | $ | 2,927 |  |  | $ | 12,311 |  |  | $ | 5 |  |  | $ | 62,550 |  |

----

Table of Contents

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | June 30, 2016 |
|                                            | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance Balances:                             |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 1,573 |  |  | $ | 276 |  |  |  |  | $ | 69 |  |  |  |  | $ | 1,918 |  |
| Collectively evaluated for impairment           | 24,748 |  |  | 21,824 |  |  | $ | 2,684 |  |  | 10,808 |  |  | $ | 2 |  |  | 60,066 |  |
| Loans Acquired with Deteriorated Credit Quality |  |  |  | 180 |  |  |  |  |  | 22 |  |  |  |  | 202 |  |
| Total Allowance for Loan Losses                 | $ | 26,321 |  |  | $ | 22,280 |  |  | $ | 2,684 |  |  | $ | 10,899 |  |  | $ | 2 |  |  | $ | 62,186 |  |
| Loan Balances:                                  |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 7,841 |  |  | $ | 21,118 |  |  |  |  | $ | 3,462 |  |  |  |  | $ | 32,421 |  |
| Collectively evaluated for impairment           | 1,345,826 |  |  | 2,155,077 |  |  | $ | 75,205 |  |  | 1,126,707 |  |  | $ | 388 |  |  | 4,703,203 |  |
| Loans Acquired with Deteriorated Credit Quality | 6,457 |  |  | 46,488 |  |  |  |  |  | 2,860 |  |  |  |  |  | 55,805 |  |
| Loans                                           | $ | 1,360,124 |  |  | $ | 2,222,683 |  |  | $ | 75,205 |  |  | $ | 1,133,029 |  |  | $ | 388 |  |  | $ | 4,791,429 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | December 31, 2015 |
|                                            | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance Balances:                             |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 1,277 |  |  | $ | 243 |  |  |  |  | $ | 169 |  |  |  |  | $ | 1,689 |  |
| Collectively evaluated for impairment           | 25,201 |  |  | 21,753 |  |  | $ | 2,689 |  |  | 10,966 |  |  | $ | 2 |  |  | 60,611 |  |
| Loans Acquired with Deteriorated Credit Quality |  |  |  | 149 |  |  |  |  |  | 4 |  |  |  |  | 153 |  |
| Total Allowance for Loan Losses                 | $ | 26,478 |  |  | $ | 22,145 |  |  | $ | 2,689 |  |  | $ | 11,139 |  |  | $ | 2 |  |  | $ | 62,453 |  |
| Loan Balances:                                  |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 7,877 |  |  | $ | 16,670 |  |  |  |  | $ | 4,020 |  |  |  |  | $ | 28,567 |  |
| Collectively evaluated for impairment           | 1,298,988 |  |  | 2,096,089 |  |  | $ | 74,717 |  |  | 1,125,316 |  |  | $ | 588 |  |  | 4,595,698 |  |
| Loans Acquired with Deteriorated Credit Quality | 7,309 |  |  | 56,866 |  |  |  |  |  | 5,382 |  |  |  |  |  | 69,557 |  |
| Loans                                           | $ | 1,314,174 |  |  | $ | 2,169,625 |  |  | $ | 74,717 |  |  | $ | 1,134,718 |  |  | $ | 588 |  |  | $ | 4,693,822 |  |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |
|                                                                  | June 30, 2016 |  | December 31, 2015 |
| Commercial and industrial loans                                  | $ | 3,413 |  |  | $ | 4,634 |  |
| Agriculture production financing and other loans to farmers      | 1,471 |  |  | 827 |  |
| Real estate Loans:                                               |   |  |   |
| Construction                                                     | 721 |  |  | 736 |  |
| Commercial and farmland                                          | 15,541 |  |  | 11,277 |  |
| Residential                                                      | 9,952 |  |  | 11,818 |  |
| Home Equity                                                      | 2,345 |  |  | 1,952 |  |
| Individuals' loans for household and other personal expenditures | 122 |  |  | 145 |  |
| Total                                                            | $ | 33,565 |  |  | $ | 31,389 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | June 30, 2016 |
|                                                        | UnpaidPrincipalBalance |  | RecordedInvestment |  | RelatedAllowance |
| Impaired loans with no related allowance:                   |   |  |   |  |  |
| Commercial and industrial loans                             | $ | 19,322 |  |  | $ | 10,183 |  |  |  |  |
| Agriculture production financing and other loans to farmers | 709 |  |  | 701 |  |  |  |  |
| Real estate Loans:                                          |   |  |   |  |  |
| Construction                                                | 8,089 |  |  | 4,091 |  |  |  |  |
| Commercial and farmland                                     | 83,028 |  |  | 61,319 |  |  |  |  |
| Residential                                                 | 8,650 |  |  | 5,016 |  |  |  |  |
| Home equity                                                 | 176 |  |  | 139 |  |  |  |  |
| Other commercial loans                                      | 16 |  |  |  |  |  |  |  |
| Total                                                       | $ | 119,990 |  |  | $ | 81,449 |  |  |  |  |
| Impaired loans with related allowance:                      |   |  |   |  |  |
| Commercial and industrial loans                             | $ | 2,491 |  |  | $ | 2,114 |  |  | $ | 1,007 |  |
| Agriculture production financing and other loans to farmers | 1,331 |  |  | 1,301 |  |  | 566 |  |
| Real estate Loans:                                          |   |  |   |  |   |
| Commercial and farmland                                     | 2,145 |  |  | 1,978 |  |  | 456 |  |
| Residential                                                 | 877 |  |  | 801 |  |  | 91 |  |
| Total                                                       | $ | 6,844 |  |  | $ | 6,194 |  |  | $ | 2,120 |  |
| Total Impaired Loans                                        | $ | 126,834 |  |  | $ | 87,643 |  |  | $ | 2,120 |  |

----

Table of Contents

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | December 31, 2015 |
|                                                        | UnpaidPrincipalBalance |   | RecordedInvestment |   | RelatedAllowance |
| Impaired loans with no related allowance:                   |   |   |   |   |   |
| Commercial and industrial loans                             | $ | 22,151 |  |   | $ | 11,669 |  |   |   |
| Agriculture production financing and other loans to farmers | 370 |  |   | 361 |  |   |   |
| Real estate Loans:                                          |   |   |   |   |   |
| Construction                                                | 4,551 |  |   | 2,336 |  |   |   |
| Commercial and farmland                                     | 95,930 |  |   | 69,024 |  |   |   |
| Residential                                                 | 11,262 |  |   | 7,338 |  |   |   |
| Home equity                                                 | 297 |  |   | 247 |  |   |   |
| Other commercial loans                                      | 20 |  |   |  |  |   |   |
| Total                                                       | $ | 134,581 |  |   | $ | 90,975 |  |   |   |
| Impaired loans with related allowance:                      |   |   |   |   |   |
| Commercial and industrial loans                             | $ | 3,043 |  |   | $ | 2,690 |  |   | $ | 1,247 |  |
| Agriculture production financing and other loans to farmers | 466 |  |  | 466 |  |  | 30 |  |
| Real estate Loans:                                          |   |   |   |   |   |
| Commercial and farmland                                     | 2,144 |  |   | 1,933 |  |   | 392 |  |
| Residential                                                 | 2,300 |  |   | 1,463 |  |   | 173 |  |
| Total                                                       | $ | 7,953 |  |   | $ | 6,552 |  |   | $ | 1,842 |  |
| Total Impaired Loans                                        | $ | 142,534 |  |   | $ | 97,527 |  |   | $ | 1,842 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | Three Months Ended June 30, 2016 |  | Six Months Ended June 30, 2016 |
|                                                        | AverageRecorded Investment |  | InterestIncome Recognized |  | AverageRecorded Investment |  | InterestIncome Recognized |
| Impaired loans with no related allowance:                   |   |  |   |  |   |  |   |
| Commercial and industrial loans                             | $ | 10,372 |  |  | $ | 128 |  |  | $ | 10,307 |  |  | $ | 231 |  |
| Agriculture production financing and other loans to farmers | 834 |  |  | 2 |  |  | 882 |  |  | 2 |  |
| Real estate Loans:                                          |   |  |   |  |  |  |  |
| Construction                                                | 4,085 |  |  | 74 |  |  | 4,074 |  |  | 147 |  |
| Commercial and farmland                                     | 62,173 |  |  | 861 |  |  | 63,136 |  |  | 1,706 |  |
| Residential                                                 | 5,069 |  |  | 54 |  |  | 5,390 |  |  | 107 |  |
| Home equity                                                 | 138 |  |  |  |  |  | 139 |  |  |  |
| Total                                                       | $ | 82,671 |  |  | $ | 1,119 |  |  | $ | 83,928 |  |  | $ | 2,193 |  |
| Impaired loans with related allowance:                      |   |  |   |  |   |  |   |
| Commercial and industrial loans                             | $ | 2,120 |  |  | $ | 9 |  |  | $ | 2,129 |  |  | $ | 19 |  |
| Agriculture production financing and other loans to farmers | 1,321 |  |  |  |  | 1,405 |  |  |  |
| Real estate Loans:                                          |   |  |   |  |  |  |  |
| Commercial and farmland                                     | 1,986 |  |  |  |  | 2,008 |  |  |  |
| Residential                                                 | 840 |  |  |  |  | 860 |  |  |  |
| Total                                                       | $ | 6,267 |  |  | $ | 9 |  |  | $ | 6,402 |  |  | $ | 19 |  |
| Total Impaired Loans                                        | $ | 88,938 |  |  | $ | 1,128 |  |  | $ | 90,330 |  |  | $ | 2,212 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | Three Months Ended June 30, 2015 |  | Six Months Ended June 30, 2015 |
|                                                        | AverageRecorded Investment |  | InterestIncome Recognized |  | AverageRecorded Investment |  | InterestIncome Recognized |
| Impaired loans with no related allowance:                   |   |  |   |  |   |  |   |
| Commercial and industrial loans                             | $ | 12,154 |  |  | $ | 111 |  |  | $ | 12,942 |  |  | $ | 200 |  |
| Agriculture production financing and other loans to farmers | 1,325 |  |  |  |  | 1,343 |  |  |  |
| Real estate Loans:                                          |  |  |  |  |  |  |  |
| Construction                                                | 7,648 |  |  | 95 |  |  | 7,898 |  |  | 191 |  |
| Commercial and farmland                                     | 66,625 |  |  | 894 |  |  | 66,957 |  |  | 1,765 |  |
| Residential                                                 | 7,114 |  |  | 57 |  |  | 7,150 |  |  | 107 |  |
| Home equity                                                 | 208 |  |  |  |  |  | 208 |  |  |  |  |
| Total                                                       | $ | 95,074 |  |  | $ | 1,157 |  |  | $ | 96,498 |  |  | $ | 2,263 |  |
| Impaired loans with related allowance:                      |  |  |  |  |  |  |  |
| Commercial and industrial loans                             | $ | 3,204 |  |  | $ | 10 |  |  | $ | 3,214 |  |  | $ | 19 |  |
| Real estate Loans:                                          |  |  |  |  |  |  |  |
| Commercial and farmland                                     | 2,622 |  |  |  |  |  | 2,727 |  |  |  |  |
| Residential                                                 | 2,600 |  |  |  |  | 2,603 |  |  |  |  |
| Total                                                       | $ | 8,426 |  |  | $ | 10 |  |  | $ | 8,544 |  |  | $ | 19 |  |
| Total Impaired Loans                                        | $ | 103,500 |  |  | $ | 1,167 |  |  | $ | 105,042 |  |  | $ | 2,282 |  |

----

Table of Contents

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | Pass - Loans that are considered to be of acceptable credit quality. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date.  Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification.  The key distinctions of this category's classification are that it is indicative of an unwarranted level of risk; and weaknesses are considered “potential”, not “defined”, impairments to the primary source of repayment. Examples include businesses that may be suffering from inadequate management, loss of key personnel or significant customer or litigation. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.  Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt.  They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.  Other characteristics may include: |

|        |
|--------|
|        |  |  |
|   | o | the likelihood that a loan will be paid from the primary source of repayment is uncertain or financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss, |

|        |
|--------|
|        |  |  |
|   | o | the primary source of repayment is gone, and the Corporation is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees, |

|        |
|--------|
|        |  |  |
|   | o | loans have a distinct possibility that the Corporation will sustain some loss if deficiencies are not corrected, |

|        |
|--------|
|        |  |  |
|   | o | unusual courses of action are needed to maintain a high probability of repayment, |

|        |
|--------|
|        |  |  |
|   | o | the borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments, |

|        |
|--------|
|        |  |  |
|   | o | the Corporation is forced into a subordinated or unsecured position due to flaws in documentation, |

|        |
|--------|
|        |  |  |
|   | o | loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms, |

|        |
|--------|
|        |  |  |
|   | o | the Corporation is seriously contemplating foreclosure or legal action due to the apparent deterioration of the loan, and |

|        |
|--------|
|        |  |  |
|   | o | there is significant deterioration in market conditions to which the borrower is highly vulnerable. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Doubtful - Loans that have all of the weaknesses of those classified as Substandard.  However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable.  Other credit characteristics may include the primary source of repayment is gone or there is considerable doubt as to the quality of the secondary sources of repayment.  The possibility of loss is high, but because of certain important pending factors that may strengthen the loan, loss classification is deferred until the exact status of repayment is known. |

|         |                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical not desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | June 30, 2016 |
|                                                             | CommercialPass |  | CommercialSpecialMention |  | Commercial Substandard |  | CommercialDoubtful |  | Commercial Loss |  | Consumer Performing |  | ConsumerNon-Performing |  | Total |
| Commercial and industrial loans                                  | $ | 1,022,507 |  |  | $ | 29,117 |  |  | $ | 33,266 |  |  |  |  |  |  |   |  |   |  | $ | 1,084,890 |  |
| Agriculture production financing and other loans to farmers      | 37,114 |  |  | 32,784 |  |  | 25,233 |  |  |   |  |  |  |   |  |   |  | 95,131 |  |
| Real estate Loans:                                               |   |  |   |  |   |  |   |  |  |  |   |  |   |  |   |
| Construction                                                     | 328,366 |  |  | 5,023 |  |  | 1,606 |  |  |  |  |  |  | $ | 17,908 |  |  | $ | 77 |  |  | 352,980 |  |
| Commercial and farmland                                          | 1,733,503 |  |  | 51,793 |  |  | 84,407 |  |  |  |  |  |  |   |  |  |  |  | 1,869,703 |  |
| Residential                                                      | 157,186 |  |  | 7,953 |  |  | 6,352 |  |  |  |  |  |  | 579,403 |  |  | 7,976 |  |  | 758,870 |  |
| Home equity                                                      | 7,377 |  |  | 97 |  |  | 743 |  |  |   |  |  |  | 363,618 |  |  | 2,324 |  |  | 374,159 |  |
| Individuals' loans for household and other personal expenditures |   |  |   |  |   |  |   |  |  |  | 75,084 |  |  | 121 |  |  | 75,205 |  |
| Lease financing receivables, net of unearned income              | 300 |  |  |   |  | 88 |  |  |   |  |  |  |  |  |  |  |  |  | 388 |  |
| Other commercial loans                                           | 180,103 |  |  |  |  |  |  |  |   |  |  |  |   |  |   |  | 180,103 |  |
| Loans                                                            | $ | 3,466,456 |  |  | $ | 126,767 |  |  | $ | 151,695 |  |  |  |  |  |  | $ | 1,036,013 |  |  | $ | 10,498 |  |  | $ | 4,791,429 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | December 31, 2015 |
|                                                             | CommercialPass |  | CommercialSpecialMention |  | Commercial Substandard |  | CommercialDoubtful |  | Commercial Loss |  | Consumer Performing |  | ConsumerNon-Performing |  | Total |
| Commercial and industrial loans                                  | $ | 962,340 |  |  | $ | 48,432 |  |  | $ | 45,984 |  |  | $ | 319 |  |  |  |  |   |  |   |  | $ | 1,057,075 |  |
| Agriculture production financing and other loans to farmers      | 77,884 |  |  | 6,665 |  |  | 13,162 |  |  |   |  |  |  |   |  |   |  | 97,711 |  |
| Real estate Loans:                                               |  |  |   |  |  |  |   |  |  |  |   |  |   |  |   |
| Construction                                                     | 345,449 |  |  | 1,271 |  |  | 1,790 |  |  |   |  |  |  | $ | 18,114 |  |  | $ | 80 |  |  | 366,704 |  |
| Commercial and farmland                                          | 1,679,141 |  |  | 46,442 |  |  | 77,338 |  |  |  |  |  |  |  |   |  |  |  |  |  | 1,802,921 |  |
| Residential                                                      | 171,576 |  |  | 3,107 |  |  | 10,428 |  |  |  |  |  |  |  | 593,533 |  |  | 7,461 |  |  | 786,105 |  |
| Home equity                                                      | 8,218 |  |  | 48 |  |  | 600 |  |  |   |  |  |  | 337,718 |  |  | 2,029 |  |  | 348,613 |  |
| Individuals' loans for household and other personal expenditures |   |  |   |  |   |  |   |  |  |  | 74,491 |  |  | 226 |  |  | 74,717 |  |
| Lease financing receivables, net of unearned income              | 495 |  |  |   |  | 93 |  |  |   |  |  |  |  |  |  |  |  | 588 |  |
| Other commercial loans                                           | 159,388 |  |  |  |  |  |  |  |  |   |  |  |  |  |   |  |   |  | 159,388 |  |
| Loans                                                            | $ | 3,404,491 |  |  | $ | 105,965 |  |  | $ | 149,395 |  |  | $ | 319 |  |  |  |  | $ | 1,023,856 |  |  | $ | 9,796 |  |  | $ | 4,693,822 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | June 30, 2016 |
|                                                             | Current |  | 30-59 DaysPast Due |  | 60-89 DaysPast Due |  | Loans > 90 DaysAnd Accruing |  | Non-Accrual |  | Total Past Due& Non-Accrual |  | Total |
| Commercial and industrial loans                                  | $ | 1,080,184 |  |  | $ | 998 |  |  | $ | 282 |  |  | $ | 13 |  |  | $ | 3,413 |  |  | $ | 4,706 |  |  | $ | 1,084,890 |  |
| Agriculture production financing and other loans to farmers      | 92,979 |  |  | 250 |  |  | 431 |  |  |  |  |  | 1,471 |  |  | 2,152 |  |  | 95,131 |  |
| Real estate Loans:                                               |  |  |   |  |   |  |   |  |  |  |   |  |   |
| Construction                                                     | 351,147 |  |  |  |  |  | 1,112 |  |  |  |  | 721 |  |  | 1,833 |  |  | 352,980 |  |
| Commercial and farmland                                          | 1,850,882 |  |  | 2,384 |  |  | 896 |  |  |  |  |  | 15,541 |  |  | 18,821 |  |  | 1,869,703 |  |
| Residential                                                      | 743,951 |  |  | 3,847 |  |  | 888 |  |  | 232 |  |  | 9,952 |  |  | 14,919 |  |  | 758,870 |  |
| Home equity                                                      | 370,602 |  |  | 628 |  |  | 467 |  |  | 117 |  |  | 2,345 |  |  | 3,557 |  |  | 374,159 |  |
| Individuals' loans for household and other personal expenditures | 74,744 |  |  | 297 |  |  | 42 |  |  |  |  | 122 |  |  | 461 |  |  | 75,205 |  |
| Lease financing receivables, net of unearned income              | 388 |  |  |  |  |   |  |  |  |  |  |  |  |  |  | 388 |  |
| Other commercial loans                                           | 180,103 |  |  |  |  |   |  |   |  |  |  |  |  |  |  | 180,103 |  |
| Loans                                                            | $ | 4,744,980 |  |  | $ | 8,404 |  |  | $ | 4,118 |  |  | $ | 362 |  |  | $ | 33,565 |  |  | $ | 46,449 |  |  | $ | 4,791,429 |  |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | December 31, 2015 |
|                                                             | Current |  | 30-59 DaysPast Due |  | 60-89 DaysPast Due |  | Loans > 90 DaysAnd Accruing |  | Non-Accrual |  | Total Past Due& Non-Accrual |  | Total |
| Commercial and industrial loans                                  | $ | 1,052,275 |  |  | $ | 166 |  |  |  |  |  |  |  |  | $ | 4,634 |  |  | $ | 4,800 |  |  | $ | 1,057,075 |  |
| Agriculture production financing and other loans to farmers      | 96,884 |  |  |  |  |  |  |  |  |  | 827 |  |  | 827 |  |  | 97,711 |  |
| Real estate Loans:                                               |   |  |   |  |   |  |   |  |   |  |  |  |   |
| Construction                                                     | 362,084 |  |  | 3,884 |  |  |  |  |  |   |  |  | 736 |  |  | 4,620 |  |  | 366,704 |  |
| Commercial and farmland                                          | 1,786,092 |  |  | 5,552 |  |  |  |  |  |  |  | 11,277 |  |  | 16,829 |  |  | 1,802,921 |  |
| Residential                                                      | 765,634 |  |  | 6,090 |  |  | $ | 2,061 |  |  | $ | 502 |  |  | 11,818 |  |  | 20,471 |  |  | 786,105 |  |
| Home equity                                                      | 344,344 |  |  | 1,433 |  |  | 560 |  |  | 324 |  |  | 1,952 |  |  | 4,269 |  |  | 348,613 |  |
| Individuals' loans for household and other personal expenditures | 73,990 |  |  | 445 |  |  | 56 |  |  | 81 |  |  | 145 |  |  | 727 |  |  | 74,717 |  |
| Lease financing receivables, net of unearned income              | 588 |  |  |   |  |   |  |   |  |  |  |  |  | 588 |  |
| Other commercial loans                                           | 159,324 |  |  |   |  | 64 |  |  |   |  |  |  |  | 64 |  |  | 159,388 |  |
| Loans                                                            | $ | 4,641,215 |  |  | $ | 17,570 |  |  | $ | 2,741 |  |  | $ | 907 |  |  | $ | 31,389 |  |  | $ | 52,607 |  |  | $ | 4,693,822 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | Three Months Ended June 30, 2016 |  | Six Months Ended June 30, 2016 |
|                                                             | Pre-ModificationRecordedBalance |  | Post-ModificationRecordedBalance |  | NumberofLoans |  | Pre-ModificationRecordedBalance |  | Post-ModificationRecordedBalance |  | NumberofLoans |
| Commercial and industrial loans                             |  |  |  |  |  |  |  |  |  | $ | 260 |  |  | $ | 260 |  |  | 3 |  |
| Agriculture production financing and other loans to farmers | $ | 1,141 |  |   | $ | 1,141 |  |   | 3 |  |   | 1,606 |  |   | 1,472 |  |   | 5 |  |
| Real estate Loans:                                          |   |  |   |  |   |  |   |  |   |  |   |
| Commercial and farmland                                     | 3,539 |  |  | 3,508 |  |  | 5 |  |  | 3,891 |  |  | 3,860 |  |  | 6 |  |
| Residential                                                 |  |  |  |  |  |  |  |  |  | 113 |  |  | 133 |  |  | 3 |  |
| Home Equity                                                 | 174 |  |  | 146 |  |  | 1 |  |  | 174 |  |  | 146 |  |  | 1 |  |
| Total                                                       | $ | 4,854 |  |  | $ | 4,795 |  |  | 9 |  |  | $ | 6,044 |  |  | $ | 5,871 |  |  | 18 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Three Months Ended June 30, 2015 |  | Six Months Ended June 30, 2015 |
|                                 | Pre-ModificationRecordedBalance |  | Post-ModificationRecordedBalance |  | NumberofLoans |  | Pre-ModificationRecordedBalance |  | Post-ModificationRecordedBalance |  | NumberofLoans |
| Commercial and industrial loans | $ | 1,386 |  |  | $ | 536 |  |  | 1 |  |  | $ | 3,748 |  |  | $ | 1,897 |  |  | 5 |  |
| Real estate Loans:              |  |  |   |  |   |  |   |  |   |  |   |
| Construction                    |  |  |  |  |  |  |  |  |  | 79 |  |  | 80 |  |  | 1 |  |
| Commercial and farmland         | 537 |  |  | 537 |  |  | 1 |  |  | 537 |  |  | 2,280 |  |  | 2 |  |
| Residential                     | 20 |  |  | 871 |  |  | 2 |  |  | 44 |  |  | 895 |  |  | 3 |  |
| Total                           | $ | 1,943 |  |  | $ | 1,944 |  |  | 4 |  |  | $ | 4,408 |  |  | $ | 5,152 |  |  | 11 |  |

----

Table of Contents

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | Three Months Ended June 30, 2016 |
|                                                                               | TermModification |  | RateModification |  | Combination |  | TotalModification |
| Agriculture production financing and other loans to farmers                   | $ | 1,141 |  |   |  |   |  |   | $ | 1,141 |  |
| Real estate Loans:                                                            |   |  |   |  |   |  |  |
| Commercial and farmland                                                       | 418 |  |  |  |  |  | $ | 3,086 |  |  | 3,504 |  |
|            Home Equity |  |  | $ | 143 |  |  |  |  |  | 143 |  |
| Total                                                                         | $ | 1,559 |  |  | $ | 143 |  |  | $ | 3,086 |  |  | $ | 4,788 |  |

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | Six Months Ended June 30, 2016 |
|                                                                               | TermModification |  | RateModification |  | Combination |  | TotalModification |
| Commercial and industrial loans                                               |  |  |  |  |  | $ | 198 |  |  | $ | 198 |  |
| Agriculture production financing and other loans to farmers                   | $ | 1,141 |  |   | $ | 49 |  |   |  |   | 1,190 |  |
| Real estate Loans:                                                            |   |  |   |  |   |  |   |
| Commercial and farmland                                                       | 418 |  |  |  |  |  | 3,433 |  |  | 3,851 |  |
| Residential                                                                   |  |  |  | 112 |  |  |  |  |  | 112 |  |
|            Home Equity |  |   | 143 |  |   |  |  |   | 143 |  |
| Total                                                                         | $ | 1,559 |  |  | $ | 304 |  |  | $ | 3,631 |  |  | $ | 5,494 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Three Months Ended June 30, 2015 |
|                                 | TermModification |  | RateModification |  | Combination |  | TotalModification |
| Commercial and industrial loans | $ | 492 |  |  |  |  |  |  |  | $ | 492 |  |
| Real estate Loans:              |   |  |   |  |   |  |  |
| Commercial and farmland         |  |  |  |  |  |  | $ | 240 |  |  | 240 |  |
| Residential                     | 850 |  |  | $ | 21 |  |  |  |  |  | 871 |  |
| Total                           | $ | 1,342 |  |  | $ | 21 |  |  | $ | 240 |  |  | $ | 1,603 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Six Months Ended June 30, 2015 |
|                                 | TermModification |  | RateModification |  | Combination |  | TotalModification |
| Commercial and industrial loans | $ | 1,234 |  |  |  |  | $ | 1,030 |  |  | $ | 2,264 |  |
| Real estate Loans:              |  |  |   |  |   |  |   |
| Construction                    | 199 |  |  |  |  |  |  |  | 199 |  |
| Commercial and farmland         | 1,442 |  |  |  |  |  | 240 |  |  | 1,682 |  |
| Residential                     | 850 |  |  | $ | 47 |  |  |  |  |  | 897 |  |
| Total                           | $ | 3,725 |  |  | $ | 47 |  |  | $ | 1,270 |  |  | $ | 5,042 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Three Months Ended June 30, 2016 |  | Six Months Ended June 30, 2016 |
|                                 | Number ofLoans |  | RecordedBalance |  | Number ofLoans |  | RecordedBalance |
| Commercial and industrial loans | 1 |  |  | $ | 72 |  |  | 4 |  |  | $ | 269 |  |
| Real estate Loans:              |   |  |   |  |   |  |   |
| Residential                     | 1 |  |  | 55 |  |  | 1 |  |  | 55 |  |
| Total                           | 2 |  |  | $ | 127 |  |  | 5 |  |  | $ | 324 |  |

|        |
|--------|
|        |  |  |  |
|   |   |   |   |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | June 30, 2016 |
|                                                                  | Ameriana |   | C Financial |  | Community |  | CFS |  | SCB |  | Total |
| Commercial and industrial loans                                  | $ | 21,544 |  |   | $ | 95 |  |  | $ | 5,613 |  |  | $ | 49,079 |  |  | $ | 4,408 |  |  | $ | 80,739 |  |
| Agricultural production financing and other loans to farmers     |  |  |   |  |  |  | 2,802 |  |  | 25 |  |  | 1,047 |  |  | 3,874 |  |
| Real estate loans:                                               |  |   |  |  |  |  |  |  |  |  |   |
| Construction                                                     | 32,597 |  |   | 5,034 |  |  | 8,923 |  |  | 624 |  |  |  |  |  | 47,178 |  |
| Commercial and farmland                                          | 120,330 |  |   | 25,024 |  |  | 45,281 |  |  | 164,742 |  |  | 11,265 |  |  | 366,642 |  |
| Residential                                                      | 112,520 |  |   | 48,782 |  |  | 12,159 |  |  | 107,895 |  |  | 5,467 |  |  | 286,823 |  |
|        Home Equity            | 13,029 |  |   | 8,646 |  |  | 7,724 |  |  | 29,464 |  |  | 12,480 |  |  | 71,343 |  |
| Individuals' loans for household and other personal expenditures | 1,101 |  |   | 5 |  |  | 238 |  |  | 295 |  |  | 38 |  |  | 1,677 |  |
| Other commercial loans                                           | 1,840 |  |   |  |  |  |  |  |  | 69 |  |  |  |  |  | 1,909 |  |
| Total                                                            | $ | 302,961 |  |   | $ | 87,586 |  |  | $ | 82,740 |  |  | $ | 352,193 |  |  | $ | 34,705 |  |  | $ | 860,185 |  |
|                                                                  |  |   |  |  |  |  |  |  |  |  |  |
| Carrying Amount                                                  | $ | 290,946 |  |   | $ | 85,505 |  |  | $ | 77,933 |  |  | $ | 336,031 |  |  | $ | 30,743 |  |  | $ | 821,158 |  |
| Allowance                                                        |  |  |   | 180 |  |  | 22 |  |  |  |  |  |  |  |  | 202 |  |
| Carrying Amount Net of Allowance                                 | $ | 290,946 |  |   | $ | 85,325 |  |  | $ | 77,911 |  |  | $ | 336,031 |  |  | $ | 30,743 |  |  | $ | 820,956 |  |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | December 31, 2015 |
|                                                                  | Ameriana |   | C Financial |   | Community |  | CFS |  | SCB |  | Total |
| Commercial and industrial loans                                  | $ | 21,888 |  |   | $ | 104 |  |   | $ | 6,769 |  |  | $ | 52,060 |  |  | $ | 4,620 |  |  | $ | 85,441 |  |
| Agricultural production financing and other loans to farmers     |  |  |   |   |   | 1,761 |  |  |  |  |  | 1,288 |  |  | 3,049 |  |
| Real estate loans:                                               |  |   |   |   |  |  |  |  |  |  |   |
| Construction                                                     | 23,365 |  |   | 6,214 |  |   | 10,436 |  |  | 976 |  |  |  |  |  | 40,991 |  |
| Commercial and farmland                                          | 144,514 |  |   | 27,838 |  |   | 49,997 |  |  | 189,372 |  |  | 13,293 |  |  | 425,014 |  |
| Residential                                                      | 123,231 |  |   | 55,856 |  |   | 21,886 |  |  | 118,105 |  |  | 6,063 |  |  | 325,141 |  |
|        Home Equity            | 14,261 |  |   | 9,144 |  |   | 8,231 |  |  | 31,986 |  |  | 13,431 |  |  | 77,053 |  |
| Individuals' loans for household and other personal expenditures | 1,731 |  |   | 10 |  |   | 461 |  |  | 443 |  |  | 48 |  |  | 2,693 |  |
| Other commercial loans                                           | 1,928 |  |   |   |   |  |  |  | 72 |  |  |  |  |  | 2,000 |  |
| Total                                                            | $ | 330,918 |  |   | $ | 99,166 |  |   | $ | 99,541 |  |  | $ | 393,014 |  |  | $ | 38,743 |  |  | $ | 961,382 |  |
|                                                                  |  |   |   |   |  |  |  |  |  |  |  |
| Carrying Amount                                                  | $ | 319,664 |  |   | $ | 96,829 |  |   | $ | 93,355 |  |  | $ | 373,649 |  |  | $ | 34,092 |  |  | $ | 917,589 |  |
| Allowance                                                        |  |  |   |   |   | 4 |  |  | 149 |  |  |  |  |  | 153 |  |
| Carrying Amount Net of Allowance                                 | $ | 319,664 |  |   | $ | 96,829 |  |   | $ | 93,351 |  |  | $ | 373,500 |  |  | $ | 34,092 |  |  | $ | 917,436 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Three Months Ended June 30, 2016 |
|                                     | Ameriana |   | C Financial |  | Community |  | CFS |  | SCB |  | Total |
| Beginning balance                   | $ | 2,120 |  |   | $ | 100 |  |  | $ | 1,456 |  |  | $ | 1,033 |  |  | $ | 590 |  |  | $ | 5,299 |  |
| Additions                           |  |  |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Accretion                           | (47 | ) |   | (71 | ) |  | (849 | ) |  | (855 | ) |  | (293 | ) |  | (2,115 | ) |
| Reclassification from nonaccretable | 5 |  |   | 52 |  |  | 738 |  |  | 737 |  |  | 154 |  |  | 1,686 |  |
| Disposals                           | (232 | ) |   |  |  |  |  |  |  | (11 | ) |  |  |  |  | (243 | ) |
| Ending balance                      | $ | 1,846 |  |   | $ | 81 |  |  | $ | 1,345 |  |  | $ | 904 |  |  | $ | 451 |  |  | $ | 4,627 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | Six Months Ended June 30, 2016 |
|                                     | Ameriana |   | C Financial |  | Community |  | CFS |  | SCB |  | Total |
| Beginning balance                   | $ | 2,160 |  |   | $ | 114 |  |  | $ | 1,508 |  |  | $ | 1,188 |  |  | $ | 642 |  |  | $ | 5,612 |  |
| Additions                           |   |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Accretion                           | (87 | ) |   | (86 | ) |  | (912 | ) |  | (2,145 | ) |  | (381 | ) |  | (3,611 | ) |
| Reclassification from nonaccretable | 5 |  |   | 53 |  |  | 749 |  |  | 1,872 |  |  | 190 |  |  | 2,869 |  |
| Disposals                           | (232 | ) |   |  |  |  |  |  |  | (11 | ) |  |  |  |  | (243 | ) |
| Ending balance                      | $ | 1,846 |  |   | $ | 81 |  |  | $ | 1,345 |  |  | $ | 904 |  |  | $ | 451 |  |  | $ | 4,627 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | Three Months Ended June 30, 2015 |
|                                     | C Financial |   | Community |   | CFS |  | SCB |  | Total |
| Beginning balance                   |   |   | $ | 1,990 |  |   | $ | 2,009 |  |  | $ | 818 |  |  | $ | 4,817 |  |
| Additions                           | $ | 145 |  |   |  |   |  |  |  |  | 145 |  |
| Accretion                           | (12 | ) |   | (353 | ) |   | (578 | ) |  | (304 | ) |  | (1,247 | ) |
| Reclassification from nonaccretable |   |   | 181 |  |   | 309 |  |  | 244 |  |  | 734 |  |
| Disposals                           |   |   |  |   | (8 | ) |  |  |  | (8 | ) |
| Ending balance                      | $ | 133 |  |   | $ | 1,818 |  |   | $ | 1,732 |  |  | $ | 758 |  |  | $ | 4,441 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Six Months Ended June 30, 2015 |
|                                     | C Financial |   | Community |   | CFS |  | SCB |  | Total |
| Beginning balance                   |  |  | $ | 2,122 |  |  | $ | 2,400 |  |  | $ | 868 |  |  | $ | 5,390 |  |
| Additions                           | $ | 145 |  |  |  |  |  |  |  |  | $ | 145 |  |
| Accretion                           | (12 | ) |  | (532 | ) |  | (1,919 | ) |  | (489 | ) |  | (2,952 | ) |
| Reclassification from nonaccretable |  |  | 228 |  |  | 1,259 |  |  | 379 |  |  | 1,866 |  |
| Disposals                           |  |  |  |  | (8 | ) |  |  |  | (8 | ) |
| Ending balance                      | $ | 133 |  |  | $ | 1,818 |  |  | $ | 1,732 |  |  | $ | 758 |  |  | $ | 4,441 |  |

|        |
|--------|
|        |  |  |  |
|   |   |   |   |

----

Table of Contents

|                               |
|-------------------------------|
|                               |  |  |  |
|                               | 2016 |
| Balance, January 1            | $ | 243,129 |  |
| Measurement period adjustment | 871 |  |
| Balance, June 30              | $ | 244,000 |  |

|                      |
|----------------------|
|                      |  |  |  |
|                      | 2015 |
| Balance, January 1   | $ | 202,724 |  |
| Goodwill acquired    | 48,879 |  |
| Goodwill reduction   | (8,474 | ) |
| Balance, December 31 | $ | 243,129 |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
|                                              | June 30, 2016 |  | December 31, 2015 |
| Gross carrying amount                        | $ | 61,798 |  |  | $ | 58,360 |  |
| Core deposit and other intangibles acquired  |  |  | 4,181 |  |
| Accumulated amortization                     | (47,119 | ) |  | (45,164 | ) |
| Measurement period adjustment                | 2,142 |  |  |  |
| Core deposit and other intangibles reduction |  |  | (742 | ) |
| Core deposit and other intangibles           | $ | 16,821 |  |  | $ | 16,635 |  |

|            |
|------------|
|            |  |  |  |
|       | Amortization Expense |
| 2016       | $ | 1,955 |  |
| 2017       | 3,614 |  |
| 2018       | 2,299 |  |
| 2019       | 1,914 |  |
| 2020       | 1,733 |  |
| After 2020 | 5,306 |  |
|       | $ | 16,821 |  |

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----

Table of Contents

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Asset Derivatives |  | Liability Derivatives |
|                                               | June 30, 2016 |  | December 31, 2015 |  | June 30, 2016 |  | December 31, 2015 |
|                                               | BalanceSheetLocation |  | FairValue |  | BalanceSheetLocation |  | FairValue |  | BalanceSheetLocation |  | FairValue |  | BalanceSheetLocation |  | FairValue |
| Derivatives designated as hedging instruments:     |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |
| Interest rate contracts                            | Other Assets |  | $ | 5 |  |  | Other Assets |  | $ | 36 |  |  | Other Liabilities |  | $ | 5,092 |  |  | Other Liabilities |  | $ | 2,921 |  |
| Derivatives not designated as hedging instruments: |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |
| Interest rate contracts                            | Other Assets |  | $ | 11,971 |  |  | Other Assets |  | $ | 4,938 |  |  | Other Liabilities |  | $ | 12,669 |  |  | Other Liabilities |  | $ | 5,149 |  |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) |
| Three Months Ended                             |  | Six Months Ended |
| June 30, 2016                             |  | June 30, 2015 |  | June 30, 2016 |  | June 30, 2015 |
| Interest Rate Products                         | $ | (813 | ) |  | $ | 807 |  |  | $ | (2,767 | ) |  | $ | (469 | ) |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives Not Designated asHedging Instruments underFASB ASC 815-10 |  | Location of Gain (Loss)Recognized Income onDerivative |  | Amount of Gain (Loss) Recognized in Income on Derivative |
|                                                                       |  | Three Months EndedJune 30, 2016 |  | Three Months Ended June 30, 2015 |
| Interest rate contracts                                               |  | Other income |  | $ | (242 | ) |  | $ | 156 |  |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives Not Designated asHedging Instruments underFASB ASC 815-10 |  | Location of Gain (Loss)Recognized Income onDerivative |  | Amount of Gain (Loss) Recognized in Income on Derivative |
|                                                                       | Six Months Ended June 30, 2016 |  | Six Months Ended June 30, 2015 |
| Interest rate contracts                                               |  | Other income |  | $ | (488 | ) |  | $ | 55 |  |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |
| Derivatives Designated asHedging Instruments underFASB ASC 815-10 |  | Location of Gain (Loss)Recognized Income onDerivative |  | Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income  (Effective Portion) |
|                                                                   |  | Three Months EndedJune 30, 2016 |  | Three Months Ended June 30, 2015 |
| Interest rate contracts                                           |  | Interest Expense |  | (318 | ) |  | (358 | ) |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |
| Derivatives Designated asHedging Instruments underFASB ASC 815-10 |  | Location of Gain (Loss)Recognized Income onDerivative |  | Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income  (Effective Portion) |
|                                                                   |  | Six Months EndedJune 30, 2016 |  | Six Months Ended June 30, 2015 |
| Interest rate contracts                                           |  | Interest Expense |  | $ | (642 | ) |  | $ | (712 | ) |

----

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----

Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 |   |  | Fair Value Measurements Using: |
| June 30, 2016                                   | Fair Value |  | Quoted Prices in Active Markets for Identical Assets(Level 1) |  | Significant OtherObservable Inputs(Level 2) |  | SignificantUnobservableInputs(Level 3) |
| Available for sale securities:                       |   |   |   |   |   |   |   |
| U.S. Government-sponsored agency securities          | $ | 102 |  |   |   |   | $ | 102 |  |   |   |
| State and municipal                                  | 353,480 |  |   |   |   | 347,951 |  |   | $ | 5,529 |  |
| U.S. Government-sponsored mortgage-backed securities | 301,271 |  |   |   |   | 301,271 |  |   |   |
| Corporate obligations                                | 31 |  |   |   |   |   |   | 31 |  |
| Equity securities                                    | 3,945 |  |   |   |   | 3,941 |  |   | 4 |  |
| Interest rate swap asset                             | 11,971 |  |   |   |   | 11,971 |  |   |   |
| Interest rate cap                                    | 5 |  |   |   |   | 5 |  |   |   |
| Interest rate swap liability                         | 17,761 |  |   |   |   | 17,761 |  |   |   |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 |   |  | Fair Value Measurements Using: |
| December 31, 2015                               | Fair Value |  | Quoted Prices inActive Markets forIdentical Assets(Level 1) |  | Significant Other Observable Inputs(Level 2) |  | SignificantUnobservableInputs(Level 3) |
| Available for sale securities:                       |   |  |   |  |   |  |   |
| U.S. Government-sponsored agency securities          | $ | 104 |  |  |   |  | $ | 104 |  |  |   |
| State and municipal                                  | 305,911 |  |  |   |  | 300,014 |  |  | $ | 5,897 |  |
| U.S. Government-sponsored mortgage-backed securities | 346,266 |  |  |   |  | 346,266 |  |  |   |
| Certificates of deposit                              | 2,176 |  |   |   |   | 2,176 |  |   |   |
| Corporate obligations                                | 31 |  |  |   |  |   |  | 31 |  |
| Equity securities                                    | 3,912 |  |  |   |  | 3,908 |  |  | 4 |  |
| Interest rate swap asset                             | 4,938 |  |  |   |  | 4,938 |  |  |  |  |
| Interest rate cap                                    | 36 |  |  |   |  | 36 |  |  |  |  |
| Interest rate swap liability                         | 8,070 |  |  |   |  | 8,070 |  |  |  |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | Available for Sale Securities |
|                                            | Three Months EndedJune 30, 2016 |  | Three Months Ended June 30, 2015 |  | Six Months Ended June 30, 2016 |  | Six Months Ended June 30, 2015 |
| Balance at beginning of the period              | $ | 5,504 |  |  | $ | 6,198 |  |  | $ | 5,932 |  |  | $ | 6,646 |  |
| Total realized and unrealized gains and losses: |   |  |  |  |   |  |  |
| Included in net income                          |  |  |  |  |  |  |  |  |  |
| Included in other comprehensive income          | 59 |  |  | 50 |  |  | 96 |  |  | 141 |  |
| Purchases, issuances and settlements            |  |  |  |  |  |  |  |  |  |  |  |
| Transfers in/(out) of Level 3                   |  |  |  |  |  |  |  |  |  |
| Principal payments                              | 1 |  |  | (220 | ) |  | (464 | ) |  | (759 | ) |
| Ending balance                                  | $ | 5,564 |  |  | $ | 6,028 |  |  | $ | 5,564 |  |  | $ | 6,028 |  |

----

Table of Contents

|        |
|--------|
|        |  |  |  |  |  |  |  |
|   |   |   |   |   |   |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |  |   |  | Fair Value Measurements Using |
| June 30, 2016                    |  | Fair Value |  | Quoted Prices inActive Markets forIdentical Assets(Level 1) |  | Significant OtherObservableInputs(Level 2) |  | Significant UnobservableInputs(Level 3) |
| Impaired loans (collateral dependent) |  | $ | 11,013 |  |  |   |  |   |  | $ | 11,013 |  |
| Other real estate owned               |  | 2,256 |  |  |   |  |   |  | 2,256 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |  |   |  | Fair Value Measurements Using |
| December 31, 2015                |  | Fair Value |  | Quoted Prices inActive Markets forIdentical Assets(Level 1) |  | Significant OtherObservable Inputs(Level 2) |  | Significant UnobservableInputs(Level 3) |
| Impaired loans (collateral dependent) |  | $ | 7,066 |  |  |   |  |   |  | $ | 7,066 |  |
| Other real estate owned               |  | 5,529 |  |  |   |  |   |  | 5,529 |  |

----

Table of Contents

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |
| June 30, 2016                          | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range                  (Weighted-Average) |
| State and municipal securities              | $ | 5,529 |  |  | Discounted cash flow |  | Maturity/Call date |  | 1 month to 20 yrs |
|                                        |   |  |   |  | Blend of US Muni BQ curve |  | A- to BBB- |
|                                        |   |  |   |  | Discount rate |  | .69% - 5% |
|                                        |   |   |   |   |   |   |   |
| Corporate obligations and Equity securities | $ | 35 |  |  | Discounted cash flow |  | Risk free rate |  | 3 month LIBOR |
|                                        |   |  |   |  | plus premium for illiquidity |  | plus 200bps |
|                                        |   |   |   |   |   |   |   |
| Impaired loans (collateral dependent)       | $ | 11,013 |  |  | Collateral based measurements |  | Discount to reflect current market conditions and ultimate collectability |  | 0% - 10%                                        (1%) |
|                                        |   |  |  |  |  |  |   |
| Other real estate owned                     | $ | 2,256 |  |  | Appraisals |  | Discount to reflect current market conditions |  | 0% - 10%                               (4%) |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |
| December 31, 2015                           | Fair Value |   | Valuation Technique |   | Unobservable Inputs |   | Range                  (Weighted-Average) |
| State and municipal securities              | $ | 5,897 |  |   | Discounted cash flow |   | Maturity/Call date |   | 1 month to 15 yrs |
|                                        |   |   |   |   | Blend of US Muni BQ curve |   | A- to BBB- |
|                                        |   |   |   |   | Discount rate |   | .80% - 5% |
|                                        |   |   |   |   |   |   |   |
| Corporate obligations and Equity securities | $ | 35 |  |   | Discounted cash flow |   | Risk free rate |   | 3 month LIBOR |
|                                        |   |   |   |   | plus premium for illiquidity |   | plus 200bps |
|                                        |   |   |   |   |   |   |   |
| Impaired loans (collateral dependent)       | $ | 7,066 |  |   | Collateral based measurements |   | Discount to reflect current market conditions and ultimate collectability |   | 0% - 50%                                        (2%) |
|                                        |   |   |   |   |   |   |   |
| Other real estate owned                     | $ | 5,529 |  |   | Appraisals |   | Discount to reflect current market conditions |   | 0% - 20%                               (2%) |

----

Table of Contents

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       |  |  | June 30, 2016 |  |  |
|                                                  | CarryingAmount |  | Quoted Prices in Active Marketsfor IdenticalAssets |  | SignificantOtherObservableInputs |  | Significant UnobservableInputs |
|                                                  | (Level 1) |  | (Level 2) |  | (Level 3) |
| Assets:                                               |   |  |   |  |   |  |   |
| Cash and cash equivalents                             | $ | 120,471 |  |  | $ | 120,471 |  |  |   |  |   |
| Interest-bearing time deposits                        | 62,533 |  |  | 62,533 |  |  |   |  |   |
| Investment securities available for sale              | 658,829 |  |  |   |  | $ | 653,265 |  |  | $ | 5,564 |  |
| Investment securities held to maturity                | 638,972 |  |  |   |  | 648,705 |  |  | 16,361 |  |
| Loans held for sale                                   | 18,854 |  |  |   |  | 18,854 |  |  |   |
| Loans                                                 | 4,729,243 |  |  |   |  |   |  | 4,710,073 |  |
| Federal Reserve Bank and Federal Home Loan Bank stock | 18,096 |  |  |   |  | 18,096 |  |  |   |
| Interest rate swap and cap asset                      | 11,976 |  |  |   |  | 11,976 |  |  |   |
| Interest receivable                                   | 23,351 |  |  |   |  | 23,351 |  |  |   |
| Liabilities:                                          |   |  |   |  |   |  |   |
| Deposits                                              | $ | 5,407,554 |  |  | $ | 4,268,709 |  |  | $ | 1,129,241 |  |  |   |
| Borrowings:                                           |  |  |  |  |   |  |   |
| Federal funds purchased                               | 20,000 |  |   |   |   | 20,000 |  |   |   |
| Securities sold under repurchase agreements           | 140,777 |  |  |   |  | 140,763 |  |  |   |
| Federal Home Loan Bank advances                       | 268,579 |  |  |   |  | 268,150 |  |  |   |
| Subordinated debentures and term loans                | 127,678 |  |  |   |  | 103,155 |  |  |   |
| Interest rate swap liability                          | 17,761 |  |  |   |  | 17,761 |  |  |   |
| Interest payable                                      | 3,051 |  |  |   |  | 3,051 |  |  |   |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       |  |  | December 31, 2015 |  |  |
|                                                  | CarryingAmount |  | Quoted Prices in Active Marketsfor IdenticalAssets |  | SignificantOtherObservableInputs |  | Significant UnobservableInputs |
|                                                  | (Level 1) |  | (Level 2) |  | (Level 3) |
| Assets:                                               |   |  |   |  |   |  |   |
| Cash and cash equivalents                             | $ | 102,170 |  |  | $ | 102,170 |  |  |   |  |   |
| Interest-bearing time deposits                        | 32,315 |  |  | 32,315 |  |  |   |  |   |
| Investment securities available for sale              | 658,400 |  |  |   |  | $ | 652,468 |  |  | $ | 5,932 |  |
| Investment securities held to maturity                | 618,599 |  |  |   |  | 598,082 |  |  | 34,298 |  |
| Loans held for sale                                   | 9,894 |  |  |   |  | 9,894 |  |  |   |
| Loans                                                 | 4,631,369 |  |  |   |  |   |  | 4,539,940 |  |
| Federal Reserve Bank and Federal Home Loan Bank stock | 37,633 |  |  |   |  | 37,633 |  |  |   |
| Interest rate swap and cap asset                      | 4,974 |  |  |   |  | 4,974 |  |  |  |  |
| Interest receivable                                   | 24,415 |  |  |   |  | 24,415 |  |  |   |
| Liabilities:                                          |   |  |   |  |   |  |   |
| Deposits                                              | $ | 5,289,647 |  |  | $ | 4,095,004 |  |  | $ | 1,177,142 |  |  |   |
| Borrowings:                                           |   |  |   |  |   |  |   |
| Federal funds purchased                               | 49,721 |  |  |  |  | 49,721 |  |  |  |
| Securities sold under repurchase agreements           | 155,325 |  |  |   |  | 155,325 |  |  |   |
| Federal Home Loan Bank advances                       | 235,652 |  |  |   |  | 236,375 |  |  |   |
| Subordinated debentures and term loans                | 127,846 |  |  |   |  | 103,643 |  |  |   |  |
| Interest rate swap liability                          | 8,070 |  |  |   |  | 8,070 |  |  |  |
| Interest payable                                      | 3,092 |  |  |   |  | 3,092 |  |  |   |

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|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      | June 30, 2016 |
|                                                      | Remaining Contractual Maturity of the Agreements |
|                                                      | Overnight and Continuous |  | Up to 30 Days |  | 30-90 Days |  | Greater Than 90 Days |  | Total |
| U.S. Government-sponsored mortgage-backed securities | $ | 119,935 |  |  | $ | 1,335 |  |  | $ | 2,672 |  |  | $ | 16,835 |  |  | $ | 140,777 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      | December 31, 2015 |
|                                                      | Remaining Contractual Maturity of the Agreements |
|                                                      | Overnight and Continuous |  | Up to 30 Days |  | 30-90 Days |  | Greater Than 90 Days |  | Total |
| U.S. Government-sponsored mortgage-backed securities | $ | 131,537 |  |  | $ | 5,680 |  |  | $ | 8,892 |  |  | $ | 9,216 |  |  | $ | 155,325 |  |

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|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | Accumulated Other Comprehensive Income (Loss) |
|                                                             | Unrealized Gains (Losses) on Securities Available for Sale |   | Unrealized Gains (Losses) on Cash Flow Hedges |   | Unrealized Gains (Losses) on Defined Benefit Plans |   | Total |
| Balance at December 31, 2015                                     | $ | 12,325 |  |   | $ | (2,347 | ) |   | $ | (11,340 | ) |   | $ | (1,362 | ) |
| Other comprehensive income before reclassifications              | 10,885 |  |   | (1,798 | ) |   |  |  |   | 9,087 |  |
| Amounts reclassified from accumulated other comprehensive income | (1,107 | ) |   | 417 |  |   |  |  |   | (690 | ) |
| Period change                                                    | 9,778 |  |   | (1,381 | ) |   | — |  |   | 8,397 |  |
| Balance at June 30, 2016                                         | $ | 22,103 |  |   | $ | (3,728 | ) |   | $ | (11,340 | ) |   | $ | 7,035 |  |
|                                                             |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |
| Balance at December 31, 2014                                     | $ | 14,098 |  |   | $ | (2,182 | ) |   | $ | (13,546 | ) |   | $ | (1,630 | ) |
| Other comprehensive income before reclassifications              | (4,413 | ) |   | (304 | ) |   |  |  |   | (4,717 | ) |
| Amounts reclassified from accumulated other comprehensive income | (606 | ) |   | 463 |  |   |  |  |   | (143 | ) |
| Period change                                                    | (5,019 | ) |   | 159 |  |   | — |  |   | (4,860 | ) |
| Balance at June 30, 2015                                         | $ | 9,079 |  |   | $ | (2,023 | ) |   | $ | (13,546 | ) |   | $ | (6,490 | ) |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
|                                                                  |   | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended June 30, |   |   |
| Details about Accumulated Other Comprehensive Income (Loss)Components |   | 2016 |   | 2015 |   | Affected Line Item in the Statements of Income |
| Unrealized gains (losses) on available for sale securities (1)        |   |   |   |   |   |   |
| Realized securities gains (losses) reclassified into income           |   | $ | 706 |  |   | $ | (93 | ) |   | Other income - net realized gains on sales of available for sale securities |
| Related income tax expense                                            |   | (247 | ) |   | 33 |  |   | Income tax expense |
|                                                                  |   | $ | 459 |  |   | $ | (60 | ) |   |   |
|                                                                  |   |   |   |   |   |   |
| Unrealized gains (losses) on cash flow hedges (2)                     |   |   |   |   |   |   |
| Interest rate contracts                                               |   | $ | (318 | ) |   | $ | (358 | ) |   | Interest expense - subordinated debentures and term loans |
| Related income tax benefit                                            |   | 111 |  |   | 125 |  |   | Income tax expense |
|                                                                  |   | $ | (207 | ) |   | $ | (233 | ) |   |   |
|                                                                  |   |   |   |   |   |   |
| Total reclassifications for the period, net of tax                    |   | $ | 252 |  |   | $ | (293 | ) |   |   |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
|                                                                       |   | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Six Months Ended June 30, |  |  |
| Details about Accumulated Other Comprehensive Income (Loss)Components |   | 2016 |  | 2015 |  | Affected Line Item in the Statements of Income |
| Unrealized gains (losses) on available for sale securities (1)        |   |  |  |  |  |  |
| Realized securities gains reclassified into income                    |   | $ | 1,703 |  |  | $ | 932 |  |  | Other income - net realized gains on sales of available for sale securities |
| Related income tax expense                                            |   | (596 | ) |  | (326 | ) |  | Income tax expense |
|                                                                       |   | $ | 1,107 |  |  | $ | 606 |  |  |  |
|                                                                       |   |  |  |  |  |  |
| Unrealized gains (losses) on cash flow hedges (2)                     |   |  |  |  |  |  |
| Interest rate contracts                                               |   | $ | (642 | ) |  | $ | (712 | ) |  | Interest expense - subordinated debentures and term loans |
| Related income tax benefit                                            |   | 225 |  |  | 249 |  |  | Income tax expense |
|                                                                       |   | $ | (417 | ) |  | $ | (463 | ) |  |  |
|                                                                       |   |  |  |  |  |  |
| Total reclassifications for the period, net of tax                    |   | $ | 690 |  |  | $ | 143 |  |  |  |

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|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|                                                        | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Stock and ESPP Options                                      |   |   |   |   |   |   |   |
| Pre-tax compensation expense                                | $ | 21 |  |   | $ | 28 |  |   | $ | 36 |  |   | $ | 54 |  |
| Income tax expense (benefit)                                | 10 |  |   |  |  |   | 10 |  |   | (1 | ) |
| Stock and ESPP option expense, net of income taxes          | $ | 31 |  |   | $ | 28 |  |   | $ | 46 |  |   | $ | 53 |  |
| Restricted Stock Awards                                     |   |   |   |   |   |   |   |
| Pre-tax compensation expense                                | $ | 620 |  |   | $ | 586 |  |   | $ | 1,199 |  |   | $ | 1,076 |  |
| Income tax benefit                                          | (217 | ) |   | (198 | ) |   | (420 | ) |   | (366 | ) |
| Restricted stock awards expense, net of income taxes        | $ | 403 |  |   | $ | 388 |  |   | $ | 779 |  |   | $ | 710 |  |
| Total Share-Based Compensation                              |   |   |   |   |   |   |   |
| Pre-tax compensation expense                                | $ | 641 |  |   | $ | 614 |  |   | $ | 1,235 |  |   | $ | 1,130 |  |
| Income tax benefit                                          | (207 | ) |   | (198 | ) |   | (410 | ) |   | (367 | ) |
| Total share-based compensation expense, net of income taxes | $ | 434 |  |   | $ | 416 |  |   | $ | 825 |  |   | $ | 763 |  |

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|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                         | Number ofShares |  | Weighted-Average Exercise Price |  | Weighted Average RemainingContractual Term(in Years) |  | AggregateIntrinsicValue |
| Outstanding at January 1, 2016               | 442,012 |  |  | $ | 19.99 |  |  |   |  |   |
| Granted                                      | — |  |  |  |  |  |   |  |   |
| Exercised                                    | (13,828 | ) |  | $ | 15.94 |  |  |   |  |   |
| Canceled                                     | (49,482 | ) |  | $ | 25.14 |  |  |   |  |   |
| Outstanding June 30, 2016               | 378,702 |  |  | $ | 19.47 |  |  | 3.05 |  | 2,313,252 |  |
| Vested and Expected to Vest at June 30, 2016 | 378,702 |  |  | $ | 19.47 |  |  | 3.02 |  | 2,313,252 |  |
| Exercisable at June 30, 2016                 | 378,702 |  |  | $ | 19.47 |  |  | 3.05 |  | 2,313,252 |  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |
|                             | Number of Shares |  | Weighted-AverageGrant Date Fair Value |
| Unvested RSAs at January 1, 2016 | 354,504 |  |  | $ | 19.65 |  |
| Granted                          | 116,133 |  |  | $ | 23.48 |  |
| Vested                           | (106,290 | ) |  | $ | 15.39 |  |
| Forfeited                        | (4,943 | ) |  | $ | 22.28 |  |
| Unvested RSAs at June 30, 2016   | 359,404 |  |  | $ | 22.42 |  |

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | Three Months EndedJune 30, |  | Six Months EndedJune 30, |
|                                                       | 2016 |  | 2015 |  | 2016 |  | 2015 |
| Reconciliation of Federal Statutory to Actual Tax Expense: |   |  |   |  |   |  |   |
| Federal statutory income tax at 35%                        | $ | 9,353 |  |  | $ | 9,389 |  |  | $ | 17,496 |  |  | $ | 17,091 |  |
| Tax-exempt interest income                                 | (2,104 | ) |  | (1,738 | ) |  | (4,130 | ) |  | (3,167 | ) |
| Basis difference on sale of insurance subsidiary           |  |  |  | 2,252 |  |   |  |  |  | 2,252 |  |
| Stock compensation                                         | 8 |  |  | 10 |  |  | 13 |  |  | 18 |  |
| Earnings on life insurance                                 | (453 | ) |  | (223 | ) |  | (970 | ) |  | (485 | ) |
| Tax credits                                                | (129 | ) |  | (148 | ) |  | (258 | ) |  | (292 | ) |
| Other                                                      | 41 |  |  | (686 | ) |  | 139 |  |  | (727 | ) |
| Actual Tax Expense                                         | $ | 6,716 |  |  | $ | 8,856 |  |  | $ | 12,290 |  |  | $ | 14,690 |  |
|                                                            |  |  |  |  |  |  |  |  |  |  |  |
| Effective Tax Rate                                         | 25.1 | % |  | 33.0 | % |  | 24.6 | % |  | 30.1 | % |

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|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | Three Months Ended June 30, |
|                                          | 2016 |   | 2015 |
|                                          | Net Income |   | Weighted-Average Shares |   | Per ShareAmount |   | Net Income |   | Weighted-Average Shares |   | Per ShareAmount |
| Net income available to common stockholders   | 20,006 |  |   | 40,751,720 |  |   | $ | 0.50 |  |   | 17,968 |  |   | 37,793,448 |  |   | $ | 0.47 |  |
| Effect of dilutive stock options and warrants |   |   | 217,391 |  |   |   |   |   |   | 249,911 |  |   |   |
| Diluted net income per share                  | $ | 20,006 |  |   | 40,969,111 |  |   | $ | 0.49 |  |   | $ | 17,968 |  |   | 38,043,359 |  |   | $ | 0.47 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | Six Months Ended June 30, |
|                                          | 2016 |   | 2015 |
|                                          | Net Income |   | Weighted-Average Shares |   | Per ShareAmount |   | Net Income |   | Weighted-Average Shares |   | Per ShareAmount |
| Net income available to common stockholders   | 37,699 |  |   | 40,721,147 |  |   | $ | 0.93 |  |   | 34,140 |  |   | 37,751,896 |  |   | $ | 0.90 |  |
| Effect of dilutive stock options and warrants |   |   | 220,338 |  |   |   |   |   |   | 270,036 |  |   |   |
| Diluted net income per share                  | $ | 37,699 |  |   | 40,941,485 |  |   | $ | 0.92 |  |   | $ | 34,140 |  |   | 38,021,932 |  |   | $ | 0.90 |  |

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|         |                                                       |
|---------|-------------------------------------------------------|
| • | statements of our goals, intentions and expectations; |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | statements regarding our business plan and growth strategies; |

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | statements regarding the asset quality of our loan and investment portfolios; and |

|         |                                                       |
|---------|-------------------------------------------------------|
| • | estimates of our risks and future costs and benefits. |

|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | fluctuations in market rates of interest and loan and deposit pricing, which could negatively affect our net interest margin, asset valuations and expense expectations; |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | adverse changes in the economy, which might affect our business prospects and could cause credit-related losses and expenses; |

|         |                                                             |
|---------|-------------------------------------------------------------|
| • | adverse developments in our loan and investment portfolios; |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | competitive factors in the banking industry, such as the trend towards consolidation in our market; |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes in the banking legislation or the regulatory requirements of federal and state agencies applicable to bank holding companies and banks like our affiliate bank; |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | acquisitions of other businesses by us and integration of such acquired businesses; |

|         |                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------|
| • | changes in market, economic, operational, liquidity, credit and interest rate risks associated with our business; and |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends. |

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|                                                                                                                                                                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                                                                                                                                                                                                                                                                          | Three Months Ended |
|                                                                                                                                                                                                                                                                                            | June 30, 2016 |   | June 30, 2015 |
|                                                                                                                                                                                                                                                                                            | Average Balance |   | Interest Income /Expense |   | AverageRate |   | Average Balance |   | Interest Income /Expense |   | AverageRate |
| Assets:                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing time deposits                                                                                                                                                                                                                                                                  | $ | 99,735 |  |   | $ | 122 |  |   | 0.49 | % |   | $ | 59,979 |  |   | $ | 31 |  |   | 0.21 | % |
| Federal Reserve and Federal Home Loan Bank stock                                                                                                                                                                                                                                                | 23,442 |  |   | 233 |  |   | 3.98 |  |   | 39,195 |  |   | 459 |  |   | 4.68 |  |
| Investment Securities: (1)                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                                                                                                                                                                         | 730,179 |  |   | 4,202 |  |   | 2.30 |  |   | 696,505 |  |   | 4,425 |  |   | 2.54 |  |
| Tax-Exempt (2)                                                                                                                                                                                                                                                                                  | 539,004 |  |   | 7,050 |  |   | 5.23 |  |   | 484,541 |  |   | 6,510 |  |   | 5.37 |  |
| Total Investment Securities                                                                                                                                                                                                                                                                     | 1,269,183 |  |   | 11,252 |  |   | 3.55 |  |   | 1,181,046 |  |   | 10,935 |  |   | 3.70 |  |
| Loans held for sale                                                                                                                                                                                                                                                                             | 3,664 |  |   | 96 |  |   | 10.48 |  |   | 6,033 |  |   | 146 |  |   | 9.68 |  |
| Loans: (3)                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                                                                                                                                                      | 3,501,919 |  |   | 40,501 |  |   | 4.63 |  |   | 3,193,314 |  |   | 35,660 |  |   | 4.47 |  |
| Real Estate Mortgage                                                                                                                                                                                                                                                                            | 568,746 |  |   | 6,116 |  |   | 4.30 |  |   | 455,470 |  |   | 4,962 |  |   | 4.36 |  |
| Installment                                                                                                                                                                                                                                                                                     | 470,254 |  |   | 5,386 |  |   | 4.58 |  |   | 396,378 |  |   | 4,552 |  |   | 4.59 |  |
| Tax-Exempt (2)                                                                                                                                                                                                                                                                                  | 194,496 |  |   | 2,254 |  |   | 4.64 |  |   | 100,665 |  |   | 1,132 |  |   | 4.49 |  |
| Total Loans                                                                                                                                                                                                                                                                                     | 4,739,079 |  |   | 54,353 |  |   | 4.59 |  |   | 4,151,860 |  |   | 46,452 |  |   | 4.48 |  |
| Total Earning Assets                                                                                                                                                                                                                                                                            | 6,131,439 |  |   | 65,960 |  |   | 4.30 |  |   | 5,432,080 |  |   | 57,877 |  |   | 4.26 |  |
| Net unrealized gain on securities available for sale                                                                                                                                                                                                                                            | 10,924 |  |   |   |   |   |   | 12,575 |  |   |   |   |   |
| Allowance for loan losses                                                                                                                                                                                                                                                                       | (62,235 | ) |   |   |   |   |   | (62,881 | ) |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                       | 104,372 |  |   |   |   |   |   | 97,738 |  |   |   |   |   |
| Premises and equipment                                                                                                                                                                                                                                                                          | 96,620 |  |   |   |   |   |   | 84,359 |  |   |   |   |   |
| Other assets                                                                                                                                                                                                                                                                                    | 576,719 |  |   |   |   |   |   | 496,606 |  |   |   |   |   |
| Total Assets                                                                                                                                                                                                                                                                                    | $ | 6,857,839 |  |   |   |   |   |   | $ | 6,060,477 |  |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing NOW deposits                                                                                                                                                                                                                                                                   | $ | 1,429,191 |  |   | $ | 637 |  |   | 0.18 | % |   | $ | 1,088,896 |  |   | $ | 283 |  |   | 0.10 | % |
| Money market deposits                                                                                                                                                                                                                                                                           | 849,270 |  |   | 502 |  |   | 0.24 |  |   | 853,776 |  |   | 446 |  |   | 0.21 |  |
| Savings deposits                                                                                                                                                                                                                                                                           | 717,044 |  |   | 149 |  |   | 0.08 |  |   | 612,920 |  |   | 166 |  |   | 0.11 |  |
| Certificates and other time deposits                                                                                                                                                                                                                                                            | 1,159,247 |  |   | 2,751 |  |   | 0.95 |  |   | 1,148,463 |  |   | 2,791 |  |   | 0.97 |  |
| Total Interest-bearing Deposits                                                                                                                                                                                                                                                                 | 4,154,752 |  |   | 4,039 |  |   | 0.39 |  |   | 3,704,055 |  |   | 3,686 |  |   | 0.40 |  |
| Borrowings                                                                                                                                                                                                                                                                                      | 476,852 |  |   | 2,703 |  |   | 2.27 |  |   | 471,467 |  |   | 2,485 |  |   | 2.11 |  |
| Total Interest-bearing Liabilities                                                                                                                                                                                                                                                              | 4,631,604 |  |   | 6,742 |  |   | 0.58 |  |   | 4,175,522 |  |   | 6,171 |  |   | 0.59 |  |
| Noninterest-bearing deposits                                                                                                                                                                                                                                                                    | 1,285,396 |  |   |   |   |   |   | 1,093,031 |  |   |   |   |   |
| Other liabilities                                                                                                                                                                                                                                                                               | 64,723 |  |   |   |   |   |   | 45,743 |  |   |   |   |   |
| Total Liabilities                                                                                                                                                                                                                                                                               | 5,981,723 |  |   |   |   |   |   | 5,314,296 |  |   |   |   |   |
| Stockholders' Equity                                                                                                                                                                                                                                                                            | 876,116 |  |   |   |   |   |   | 746,181 |  |   |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                                                                                                                                      | $ | 6,857,839 |  |   | 6,742 |  |   | 0.44 |  |   | $ | 6,060,477 |  |   | 6,171 |  |   | 0.45 |  |
| Net Interest Income                                                                                                                                                                                                                                                                             |   |   | $ | 59,218 |  |   |   |   |   |   | $ | 51,706 |  |   |   |
| Net Interest Margin                                                                                                                                                                                                                                                                             |   |   |   |   | 3.86 | % |   |   |   |   |   | 3.81 | % |
|                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| (1)  Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.  Annualized amounts are computed utilizing a 30/360 day basis.                                                                 |
| (2)  Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2016 and 2015.  The fully taxable equivalent adjustments equal $3,256 and $2,675 for the three months ended June 30, 2016 and 2015, respectively. |
| (3)  Non-accruing loans have been included in the average balances.                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in Thousands)                                                                                                                                                                                                                                                                   | Six Months Ended |
|                                                                                                                                                                                                                                                                                     | June 30, 2016 |   | June 30, 2015 |
|                                                                                                                                                                                                                                                                                     | Average Balance |   | Interest Income /Expense |   | AverageRate |   | Average Balance |   | Interest Income /Expense |   | AverageRate |
| Assets:                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing time deposits                                                                                                                                                                                                                                                           | $ | 87,722 |  |   | $ | 228 |  |   | 0.52 | % |   | $ | 58,452 |  |   | $ | 68 |  |   | 0.23 | % |
| Federal Reserve and Federal Home Loan Bank stock                                                                                                                                                                                                                                         | 30,537 |  |   | 713 |  |   | 4.67 |  |   | 40,267 |  |   | 1,009 |  |   | 5.01 |  |
| Investment Securities: (1)                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                                                                                                                                                                  | 723,333 |  |   | 8,530 |  |   | 2.36 |  |   | 716,331 |  |   | 9,148 |  |   | 2.55 |  |
| Tax-Exempt (2)                                                                                                                                                                                                                                                                           | 529,963 |  |   | 13,987 |  |   | 5.28 |  |   | 459,177 |  |   | 12,409 |  |   | 5.40 |  |
| Total Investment Securities                                                                                                                                                                                                                                                              | 1,253,296 |  |   | 22,517 |  |   | 3.59 |  |   | 1,175,508 |  |   | 21,557 |  |   | 3.67 |  |
| Loans held for sale                                                                                                                                                                                                                                                                      | 4,956 |  |   | 218 |  |   | 8.80 |  |   | 5,483 |  |   | 256 |  |   | 9.34 |  |
| Loans: (3)                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                                                                                                                                               | 3,475,684 |  |   | 79,365 |  |   | 4.57 |  |   | 3,117,698 |  |   | 69,830 |  |   | 4.48 |  |
| Real Estate Mortgage                                                                                                                                                                                                                                                                     | 572,006 |  |   | 12,510 |  |   | 4.37 |  |   | 457,620 |  |   | 9,811 |  |   | 4.29 |  |
| Installment                                                                                                                                                                                                                                                                              | 463,454 |  |   | 10,495 |  |   | 4.53 |  |   | 395,227 |  |   | 8,975 |  |   | 4.54 |  |
| Tax-Exempt (2)                                                                                                                                                                                                                                                                           | 188,223 |  |   | 4,277 |  |   | 4.54 |  |   | 68,903 |  |   | 1,513 |  |   | 4.39 |  |
| Total Loans                                                                                                                                                                                                                                                                              | 4,704,323 |  |   | 106,865 |  |   | 4.54 |  |   | 4,044,931 |  |   | 90,385 |  |   | 4.47 |  |
| Total Earning Assets                                                                                                                                                                                                                                                                     | 6,075,878 |  |   | 130,323 |  |   | 4.29 | % |   | 5,319,158 |  |   | 113,019 |  |   | 4.25 | % |
| Net unrealized gain on securities available for sale                                                                                                                                                                                                                                     | 10,464 |  |   |   |   |   |   | 13,522 |  |   |   |   |   |
| Allowance for loan losses                                                                                                                                                                                                                                                                | (62,724 | ) |   |   |   |   |   | (63,154 | ) |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                | 103,143 |  |   |   |   |   |   | 98,262 |  |   |   |   |   |
| Premises and equipment                                                                                                                                                                                                                                                                   | 96,659 |  |   |   |   |   |   | 81,052 |  |   |   |   |   |
| Other assets                                                                                                                                                                                                                                                                             | 577,157 |  |   |   |   |   |   | 492,597 |  |   |   |   |   |
| Total Assets                                                                                                                                                                                                                                                                             | $ | 6,800,577 |  |   |   |   |   |   | $ | 5,941,437 |  |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing NOW deposits                                                                                                                                                                                                                                                            | $ | 1,364,729 |  |   | $ | 1,181 |  |   | 0.17 | % |   | $ | 1,059,826 |  |   | $ | 534 |  |   | 0.10 | % |
| Money market deposits                                                                                                                                                                                                                                                                    | 857,601 |  |   | 993 |  |   | 0.23 |  |   | 838,852 |  |   | 858 |  |   | 0.20 |  |
| Savings deposits                                                                                                                                                                                                                                                                    | 703,174 |  |   | 284 |  |   | 0.08 |  |   | 592,449 |  |   | 326 |  |   | 0.11 |  |
| Certificates and other time deposits                                                                                                                                                                                                                                                     | 1,172,852 |  |   | 5,644 |  |   | 0.96 |  |   | 1,137,342 |  |   | 5,484 |  |   | 0.96 |  |
| Total Interest-bearing Deposits                                                                                                                                                                                                                                                          | 4,098,356 |  |   | 8,102 |  |   | 0.40 |  |   | 3,628,469 |  |   | 7,202 |  |   | 0.40 |  |
| Borrowings                                                                                                                                                                                                                                                                               | 498,470 |  |   | 5,412 |  |   | 2.17 |  |   | 454,758 |  |   | 4,937 |  |   | 2.17 |  |
| Total Interest-bearing Liabilities                                                                                                                                                                                                                                                       | 4,596,826 |  |   | 13,514 |  |   | 0.59 |  |   | 4,083,227 |  |   | 12,139 |  |   | 0.59 |  |
| Noninterest-bearing deposits                                                                                                                                                                                                                                                             | 1,270,363 |  |   |   |   |   |   | 1,073,173 |  |   |   |   |   |
| Other liabilities                                                                                                                                                                                                                                                                        | 64,504 |  |   |   |   |   |   | 44,659 |  |   |   |   |   |
| Total Liabilities                                                                                                                                                                                                                                                                        | 5,931,693 |  |   |   |   |   |   | 5,201,059 |  |   |   |   |   |
| Stockholders' Equity                                                                                                                                                                                                                                                                     | 868,884 |  |   |   |   |   |   | 740,378 |  |   |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                                                                                                                               | $ | 6,800,577 |  |   | 13,514 |  |   | 0.44 |  |   | $ | 5,941,437 |  |   | 12,139 |  |   | 0.46 |  |
| Net Interest Income                                                                                                                                                                                                                                                                      |   |   | $ | 116,809 |  |   |   |   |   |   | $ | 100,880 |  |   |   |
| Net Interest Margin                                                                                                                                                                                                                                                                      |   |   |   |   | 3.85 | % |   |   |   |   |   | 3.79 | % |
|                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| (1)  Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.  Annualized amounts are computed utilizing a 30/360 day basis.                                                |
| (2)  Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 35 percent for 2016 and 2015.  The fully taxable equivalent adjustments equal $6,392 and $4,873 for the six months ended June 30, 2016 and 2015, respectively. |
| (3)  Non-accruing loans have been included in the average balances.                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      |  |  | Prompt Corrective Action Thresholds |
|                                                 | Actual |  | Adequately Capitalized |  | Well Capitalized |
| June 30, 2016                                        | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |
| Total risk-based capital to risk-weighted assets     |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 808,369 |  |  | 14.67 | % |  | $ | 440,925 |  |  | 8.00 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 766,409 |  |  | 13.80 |  |  | 444,337 |  |  | 8.00 |  |  | $ | 555,422 |  |  | 10.00 | % |
| Tier 1 capital to risk-weighted assets               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 681,183 |  |  | 12.36 | % |  | $ | 330,693 |  |  | 6.00 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 704,223 |  |  | 12.68 |  |  | 333,253 |  |  | 6.00 |  |  | $ | 444,337 |  |  | 8.00 | % |
| Common equity tier 1 capital to risk-weighted assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 627,715 |  |  | 11.39 | % |  | $ | 248,020 |  |  | 4.50 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 704,223 |  |  | 12.68 |  |  | 249,940 |  |  | 4.50 |  |  | $ | 361,024 |  |  | 6.50 | % |
| Tier 1 capital to average assets                     |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 681,183 |  |  | 10.41 | % |  | $ | 261,843 |  |  | 4.00 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 704,223 |  |  | 10.66 |  |  | 264,191 |  |  | 4.00 |  |  | $ | 330,239 |  |  | 5.00 | % |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      |  |  | Prompt Corrective Action Thresholds |
|                                                 | Actual |  | Adequately Capitalized |  | Well Capitalized |
| December 31, 2015                                    | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |
| Total risk-based capital to risk-weighted assets     |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 783.776 |  |  | 14.94 | % |  | $ | 419,809 |  |  | 8.00 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 739.793 |  |  | 13.98 |  |  | 423,242 |  |  | 8.00 |  |  | $ | 529,052 |  |  | 10.00 | % |
| Tier 1 capital to risk weighted assets               |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 656,323 |  |  | 12.51 | % |  | $ | 314,857 |  |  | 6.00 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 677,340 |  |  | 12.80 |  |  | 317,431 |  |  | 6.00 |  |  | $ | 423,242 |  |  | 8.00 | % |
| Common equity tier 1 capital to risk-weighted assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 603,063 |  |  | 11.49 | % |  | $ | 236,143 |  |  | 4.50 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 677,340 |  |  | 12.80 |  |  | 238,074 |  |  | 4.50 |  |  | 343,884 |  |  | 6.50 | % |
| Tier 1 capital to average assets                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First Merchants Corporation                          | $ | 656,323 |  |  | 10.85 | % |  | $ | 242,001 |  |  | 4.00 | % |  | N/A |  |  | N/A |  |
| First Merchants Bank                                 | 677,340 |  |  | 11.22 |  |  | 241,423 |  |  | 4.00 |  |  | $ | 301,779 |  |  | 5.00 | % |

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Table of Contents

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | June 30, 2016 |  | December 31, 2015 |
|                                                              | First Merchants Corporation |  | First Merchants Bank |  | First Merchants Corporation |  | First Merchants Bank |
| Total Risk-Based Capital                                     |  |  |  |  |  |  |  |
| Total Stockholders' Equity (GAAP)                            | 887,550 |  |  | 966,974 |  |  | 850,509 |  |  | 927,649 |  |
| Adjust for Accumulated Other Comprehensive (Income) Loss (1) | (7,035 | ) |  | (9,699 | ) |  | 1,362 |  |  | (579 | ) |
| Less:  Preferred Stock                                       | (125 | ) |  |  |  | (125 | ) |  |  |
| Add:  Qualifying Capital Securities                          | 55,296 |  |  |  |  | 55,776 |  |  |  |
| Less:  Tier 1 Capital Deductions                             | (1,828 | ) |  | (1,427 | ) |  | (2,516 | ) |  | (1,903 | ) |
| Less:  Disallowed Goodwill and Intangible Assets             | (249,932 | ) |  | (249,484 | ) |  | (247,006 | ) |  | (246,558 | ) |
| Less:  Disallowed Servicing Assets                           |  |  |  |  |  |  |  |
| Less:  Disallowed Deferred Tax Assets                        | (2,743 | ) |  | (2,141 | ) |  | (1,677 | ) |  | (1,269 | ) |
| Total Tier 1 Capital (Regulatory)                            | 681,183 |  |  | 704,223 |  |  | 656,323 |  |  | 677,340 |  |
| Qualifying Subordinated Debentures                           | 65,000 |  |  |  |  | 65,000 |  |  |  |
| Allowance for Loan Losses Includible in Tier 2 Capital       | 62,186 |  |  | 62,186 |  |  | 62,453 |  |  | 62,453 |  |
| Total Risk-Based Capital (Regulatory)                        | 808,369 |  |  | 766,409 |  |  | 783,776 |  |  | 739,793 |  |
|                                                              |  |  |  |  |  |  |  |
| Net Risk-Weighted Assets (Regulatory)                        | 5,511,557 |  |  | 5,554,218 |  |  | 5,247,617 |  |  | 5,290,524 |  |
| Average Assets                                               | 6,546,074 |  |  | 6,604,787 |  |  | 6,050,023 |  |  | 6,035,575 |  |
|                                                              |  |  |  |  |  |  |  |
| Total Risk-Based Capital Ratio (Regulatory)                  | 14.67 | % |  | 13.80 | % |  | 14.94 | % |  | 13.98 | % |
| Tier 1 Capital to Risk-Weighted Assets                       | 12.36 | % |  | 12.68 | % |  | 12.51 | % |  | 12.80 | % |
| Tier 1 Capital to Average Assets                             | 10.41 | % |  | 10.66 | % |  | 10.85 | % |  | 11.22 | % |
|                                                              |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital Ratio                           |  |  |  |  |  |  |  |
| Total Tier 1 Capital (Regulatory)                            | 681,183 |  |  | 704,223 |  |  | 656,323 |  |  | 677,340 |  |
| Less:  Qualified Capital Securities                          | (55,296 | ) |  |  |  | (55,776 | ) |  |  |
| Add:  Additional Tier 1 Capital Deductions                   | 1,828 |  |  |  |  | 2,516 |  |  |  |
| Common Equity Tier 1 Capital (Regulatory)                    | 627,715 |  |  | 704,223 |  |  | 603,063 |  |  | 677,340 |  |
|                                                              |  |  |  |  |  |  |  |
| Net Risk-Weighted Assets (Regulatory)                        | 5,511,557 |  |  | 5,554,218 |  |  | 5,247,617 |  |  | 5,290,524 |  |
| Common Equity Tier 1 Capital Ratio (Regulatory)              | 11.39 | % |  | 12.68 | % |  | 11.49 | % |  | 12.80 | % |

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|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
|                                                 | Tangible Common Equity to Tangible Assets (non-GAAP) |
| (Dollars in Thousands, Except Per Share Amounts)     | June 30, 2016 |   | December 31, 2015 |
| Total Stockholders' Equity (GAAP)                    | $ | 887,550 |  |   | $ | 850,509 |  |
| Less:  Cumulative preferred stock (GAAP)             | (125 | ) |   | (125 | ) |
| Less:  Intangible assets, net of tax (GAAP)          | (254,368 | ) |   | (253,486 | ) |
| Tangible common equity (non-GAAP)                    | $ | 633,057 |  |   | $ | 596,898 |  |
| Total assets (GAAP)                                  | $ | 6,906,418 |  |   | $ | 6,761,003 |  |
| Less: Intangible assets, net of tax (GAAP)           | (254,368 | ) |   | (253,486 | ) |
| Tangible assets (non-GAAP)                           | $ | 6,652,050 |  |   | 6,507,517 |  |
| Tangible common equity to tangible assets (non-GAAP) | 9.52 | % |   | 9.17 | % |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Three Months Ended June 30, | Six Months Ended June 30, |
| (Dollars in Thousands, Except Per Share Amounts)                        | 2016 |   | 2015 | 2016 |   | 2015 |
| Average goodwill (GAAP)                                                 | $ | 244,000 |  |   | $ | 210,217 |  | $ | 244,000 |  |   | $ | 206,491 |  |
| Average core deposit intangible (GAAP)                                  | 17,273 |  |   | 15,584 |  | 17,816 |  |   | 15,615 |  |
| Average deferred tax on CDI (GAAP)                                      | (6,606 | ) |   | (5,724 | ) | (6,751 | ) |   | (5,840 | ) |
| Intangible adjustment (non-GAAP)                                        | $ | 254,667 |  |   | $ | 220,077 |  | $ | 255,065 |  |   | $ | 216,266 |  |
| Average stockholders' equity (GAAP)                                     | $ | 876,116 |  |   | $ | 746,181 |  | $ | 868,884 |  |   | $ | 740,378 |  |
| Average cumulative preferred stock (GAAP)                               | (125 | ) |   | (125 | ) | (125 | ) |   | (125 | ) |
| Intangible adjustment (non-GAAP)                                        | (254,666 | ) |   | (220,077 | ) | (255,065 | ) |   | (216,266 | ) |
| Average tangible capital (non-GAAP)                                     | $ | 621,325 |  |   | $ | 525,979 |  | $ | 613,694 |  |   | $ | 523,987 |  |
| Average assets (GAAP)                                                   | $ | 6,857,839 |  |   | $ | 6,060,477 |  | $ | 6,800,577 |  |   | $ | 5,941,437 |  |
| Intangible adjustment (non-GAAP)                                        | (254,666 | ) |   | (220,077 | ) | (255,065 | ) |   | (216,266 | ) |
| Average tangible assets (non-GAAP)                                      | $ | 6,603,173 |  |   | $ | 5,840,400 |  | $ | 6,545,512 |  |   | $ | 5,725,171 |  |
| Net income available to common stockholders (GAAP)                      | $ | 20,006 |  |   | $ | 17,968 |  | $ | 37,699 |  |   | $ | 34,140 |  |
| CDI amortization, net of tax (GAAP)                                     | 635 |  |   | 430 |  | 1,271 |  |   | 848 |  |
| Tangible net income available to common stockholders (non-GAAP)         | $ | 20,641 |  |   | $ | 18,398 |  | $ | 38,970 |  |   | $ | 34,988 |  |
| Per Share Data:                                                         |   |   |   |   |   |   |
| Diluted net income available to common stockholders (GAAP)              | $ | 0.49 |  |   | $ | 0.47 |  | $ | 0.92 |  |   | $ | 0.90 |  |
| Diluted tangible net income available to common stockholders (non-GAAP) | $ | 0.50 |  |   | $ | 0.48 |  | $ | 0.95 |  |   | $ | 0.92 |  |
| Ratios:                                                                 |   |   |   |   |   |   |
| Return on average GAAP capital (ROE)                                    | 9.13 | % |   | 9.63 | % | 8.68 | % |   | 9.22 | % |
| Return on average tangible capital                                      | 13.29 | % |   | 13.99 | % | 12.70 | % |   | 13.35 | % |
| Return on average assets (ROA)                                          | 1.17 | % |   | 1.19 | % | 1.11 | % |   | 1.15 | % |
| Return on average tangible assets                                       | 1.25 | % |   | 1.26 | % | 1.19 | % |   | 1.22 | % |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                         |  | June 30, 2016 |  | December 31, 2015 |
| Non-Performing Assets:                         |  |   |  |  |   |  |
| Non-accrual loans                              |  | $ | 33,565 |  |  | $ | 31,389 |  |
| Renegotiated loans                             |  | 4,299 |  |  | 1,923 |  |
| Non-performing loans (NPL)                     |  | 37,864 |  |  | 33,312 |  |
| Other real estate owned                        |  | 13,219 |  |  | 17,257 |  |
| Non-performing assets (NPA)                    |  | 51,083 |  |  | 50,569 |  |
| 90+ days delinquent                            |  | 362 |  |  | 907 |  |
| Non-performing assets plus 90+ days delinquent |  | $ | 51,445 |  |  | $ | 51,476 |  |
| Impaired Loans                                 |  | $ | 87,643 |  |  | $ | 97,527 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                                           | June 30, 2016 |  | December 31, 2015 |
| Non-Performing Assets plus loans 90+ Days Delinquent:            |   |  |   |
| Commercial and industrial loans                                  | $ | 3,426 |  |  | $ | 5,544 |  |
| Agricultural production financing and other loans to farmers     | 2,000 |  |  | 827 |  |
| Real estate loans:                                               |   |  |   |
| Construction                                                     | 9,110 |  |  | 9,345 |  |
| Commercial and farmland                                          | 22,143 |  |  | 18,243 |  |
| Residential                                                      | 12,173 |  |  | 14,528 |  |
| Home Equity                                                      | 2,462 |  |  | 2,665 |  |
| Individuals' loans for household and other personal expenditures | 131 |  |  | 324 |  |
| Non-performing assets plus 90+ days delinquent                   | $ | 51,445 |  |  | $ | 51,476 |  |

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|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Three Months Ended June 30, |  | Six Months Ended June 30, |
| (Dollars in Thousands)                                           | 2016 |  | 2015 |  | 2016 |  | 2015 |
| Net Charge Offs (Recoveries):                                    |   |  |   |  |   |  |   |
| Commercial and industrial loans                                  | $ | 313 |  |  | $ | (307 | ) |  | $ | 644 |  |  | $ | (383 | ) |
| Agricultural production financing and other loans to farmers     | 30 |  |  | 29 |  |  | 53 |  |  | 760 |  |
| Real estate loans:                                               |   |  |   |  |   |  |   |
| Construction                                                     | 21 |  |  | 35 |  |  | 18 |  |  | 39 |  |
| Commercial and farmland                                          | 216 |  |  | 18 |  |  | 261 |  |  | 62 |  |
| Residential                                                      | 35 |  |  | 575 |  |  | 422 |  |  | 789 |  |
| Home Equity                                                      | 68 |  |  | 311 |  |  | 128 |  |  | 514 |  |
| Individuals' loans for household and other personal expenditures | 7 |  |  | 11 |  |  | 82 |  |  | 58 |  |
| Other commercial loans                                           |  |  |  | (4 | ) |  | (1 | ) |  | (8 | ) |
| Total Net Charge Offs                                            | $ | 690 |  |  | $ | 668 |  |  | $ | 1,607 |  |  | $ | 1,831 |  |

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|                                          |
|------------------------------------------|
|                                          |  |  |  |
| (Dollars in Thousands)                   | June 30, 2016 |
| Amounts of commitments:                  |   |
| Loan commitments to extend credit        | $ | 1,863,978 |  |
| Standby and commercial letters of credit | 46,205 |  |
|                                     | $ | 1,910,183 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                      | Remaining2016 |   | 2017 |   | 2018 |   | 2019 |   | 2020 |   | 2021 |   | 2022 andafter |   | ASC 805 fair value adjustments at acquisition |   | Total |
| Operating leases                            | $ | 1,636 |  |   | $ | 2,643 |  |   | $ | 1,650 |  |   | $ | 1,453 |  |   | $ | 1,291 |  |   | $ | 970 |  |   | $ | 6,007 |  |   |   |   | $ | 15,650 |  |
| Federal funds purchased                     | 20,000 |  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 20,000 |  |
| Securities sold under repurchase agreements | 140,777 |  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 140,777 |  |
| Federal Home Loan Bank advances             | 99,405 |  |   | 37,185 |  |   | 26,851 |  |   | 13,828 |  |   | 31,310 |  |   | 25,000 |  |   | 35,000 |  |   |   |   | 268,579 |  |
| Subordinated debentures and term loans      | 370 |  |   |   |   |   |   |   |   |   |   |   |   | 132,012 |  |   | (4,704 | ) |   | 127,678 |  |
| Total                                       | $ | 262,188 |  |   | $ | 39,828 |  |   | $ | 28,501 |  |   | $ | 15,281 |  |   | $ | 32,601 |  |   | $ | 25,970 |  |   | $ | 173,019 |  |   | $ | (4,704 | ) |   | $ | 572,684 |  |

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|                |
|----------------|
|                |  |  |  |  |  |
|           |  | June 30, 2016 |
|           |  | RISING |  | FALLING |
| Driver Rates   |  | (200 Basis Points) |  | (100 Basis Points) |
| Prime          |  | 200 |  | (25 | ) |
| Federal funds  |  | 200 |  | (25 | ) |
| One-year CMT   |  | 200 |  | (38 | ) |
| Three-year CMT |  | 200 |  | (46 | ) |
| Five-year CMT  |  | 200 |  | (47 | ) |
| CD's           |  | 200 |  | (21 | ) |
| FHLB advances  |  | 200 |  | (36 | ) |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |  | June 30, 2016 |
|                        |  |   |  | RISING |  | FALLING |
| (Dollars in Thousands)      |  | Base |  | (200 Basis Points) |  | (100 Basis Points) |
| Net interest income         |  | $ | 211,909 |  |  | $ | 231,545 |  |  | $ | 203,522 |  |
| Variance from base          |  |   |  | $ | 19,636 |  |  | $ | (8,387 | ) |
| Percent of change from base |  |   |  | 9.27 | % |  | (3.96 | )% |

|                |
|----------------|
|                |  |  |  |  |  |
|           |  | December 31, 2015 |
|           |  | RISING |  | FALLING |
| Driver Rates   |  | (200 Basis Points) |  | (100 Basis Points) |
| Prime          |  | 200 |  | (25 | ) |
| Federal funds  |  | 200 |  | (25 | ) |
| One-year CMT   |  | 200 |  | (56 | ) |
| Three-year CMT |  | 200 |  | (100 | ) |
| Five-year CMT  |  | 200 |  | (100 | ) |
| CD's           |  | 200 |  | (21 | ) |
| FHLB advances  |  | 200 |  | (83 | ) |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |  | December 31, 2015 |
|                        |  |   |  | RISING |  | FALLING |
| (Dollars in Thousands)      |  | Base |  | (200 Basis Points) |  | (100 Basis Points) |
| Net interest income         |  | $ | 198,711 |  |  | $ | 213,758 |  |  | $ | 188,921 |  |
| Variance from base          |  |   |  | $ | 15,047 |  |  | $ | (9,790 | ) |
| Percent of change from base |  |   |  | 7.57 | % |  | (4.93 | )% |

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|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                           |  | June 30, 2016 |  | December 31, 2015 |
| Interest-bearing time deposits                   |  | $ | 62,533 |  |  | $ | 32,315 |  |
| Investment securities available for sale         |  | 658,829 |  |  | 658,400 |  |
| Investment securities held to maturity           |  | 638,972 |  |  | 618,599 |  |
| Mortgage loans held for sale                     |  | 18,854 |  |  | 9,894 |  |
| Loans                                            |  | 4,791,429 |  |  | 4,693,822 |  |
| Federal Reserve and Federal Home Loan Bank stock |  | 18,096 |  |  | 37,633 |  |
| Total                                            |  | $ | 6,188,713 |  |  | $ | 6,050,663 |  |

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Table of Contents

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Table of Contents

|             |
|-------------|
|             |  |  |  |  |  |  |  |  |  |
| Period      |  | Total Numberof SharesPurchased |  | AveragePrice Paidper Share |  | Total Number of SharesPurchased as part of Publicly announced Plans or Programs |  | Maximum Number of Sharesthat may yet be PurchasedUnder the Plans or Programs |
| April, 2016 |  |  |  |  |  |  |  |  |  |
| May, 2016   |  | 112 |  |  | $24.62 |  |  |  |  |
| June, 2016  |  | 1,043 |  |  | $24.80 |  |  |  |  |

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Table of Contents

|             |
|-------------|
|             |  |
| Exhibit No: | Description of Exhibits: |
|        |   |
| 3.1         | First Merchants Corporation Articles of Incorporation, as amended (Incorporated by reference to registrant’s Form 10-Q filed on November 9, 2011) (SEC No. 000-17071) |
| 3.2         | Bylaws of First Merchants Corporation dated October 28, 2009 (Incorporated by reference to registrant’s Form 10-Q filed on November 9, 2009) (SEC No. 000-17071) |
| 3.3         | First Merchants Corporation Articles of Amendment of the Articles of Incorporation for the Series B Preferred Stock (Incorporated by reference to registrant's Form 8-K filed on September 23, 2011) (SEC No. 000-17071) |
| 4.1         | First Merchants Corporation Amended and Restated Declaration of Trust of First Merchants Capital Trust II dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.2         | Indenture dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.3         | Guarantee Agreement dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.4         | Form of Capital Securities Certification of First Merchants Capital Trust II (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.5         | First Merchants Corporation Dividend Reinvestment and Stock Purchase Plan (Incorporated by reference to registrant’s Post-Effective Amendment No. 1 to Form S-3 filed on August 21, 2009) (SEC No. 033-45393) |
| 4.6         | Upon request, the registrant agrees to furnish supplementally to the Commission a copy of the instruments defining the rights of holders of its (a) 5.00% Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million and (b) 6.75% Fixed-to-Floating Rate Subordinated Notes due 2028 in aggregate principal amount of $65 million. |
| 31.1        | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 (1) |
| 31.2        | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 (1) |
| 32          | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) |
| 101.INS     | XBRL Instance Document (2) |
| 101.SCH     | XBRL Taxonomy Extension Schema Document (2) |
| 101.CAL     | XBRL Taxonomy Extension Calculation Linkbase Document (2) |
| 101.DEF     | XBRL Taxonomy Extension Definition Linkbase Document (2) |
| 101.LAB     | XBRL Taxonomy Extension Label Linkbase Document (2) |
| 101.PRE     | XBRL Taxonomy Extension Presentation Linkebase Document (2) |
|        |   |
|        |   |
|        | (1) Filed herewith. |
|        | (2) Furnished herewith. |

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Table of Contents

|                       |
|-----------------------|
|                       |  |
|                  | First Merchants Corporation |
|                  | (Registrant) |
|                  |   |
|                  |   |
| Date:  August 9, 2016 | by /s/ Michael C. Rechin |
|                  | Michael C. Rechin |
|                  | President and Chief Executive Officer |
|                  | (Principal Executive Officer) |
|                  |   |
| Date:  August 9, 2016 | by /s/ Mark K. Hardwick |
|                  | Mark K. Hardwick |
|                  | Executive Vice President, |
|                  | Chief Financial Officer and Chief Operating Officer |
|                  | (Principal Financial and Accounting Officer) |

----

Table of Contents

|             |
|-------------|
|             |  |
| Exhibit No: | Description of Exhibits: |
|        |   |
| 3.1         | First Merchants Corporation Articles of Incorporation, as amended (Incorporated by reference to registrant’s Form 10-Q filed on November 9, 2011) (SEC No. 000-17071) |
| 3.2         | Bylaws of First Merchants Corporation dated October 28, 2009 (Incorporated by reference to registrant’s Form 10-Q filed on November 9, 2009) (SEC No. 000-17071) |
| 3.3         | First Merchants Corporation Articles of Amendment of the Articles of Incorporation for the Series B Preferred Stock (Incorporated by reference to registrant's Form 8-K filed on September 23, 2011) (SEC No. 000-17071) |
| 4.1         | First Merchants Corporation Amended and Restated Declaration of Trust of First Merchants Capital Trust II dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.2         | Indenture dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.3         | Guarantee Agreement dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.4         | Form of Capital Securities Certification of First Merchants Capital Trust II (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) (SEC No. 000-17071) |
| 4.5         | First Merchants Corporation Dividend Reinvestment and Stock Purchase Plan (Incorporated by reference to registrant’s Post-Effective Amendment No. 1 to Form S-3 filed on August 21, 2009) (SEC No. 033-45393) |
| 4.6         | Upon request, the registrant agrees to furnish supplementally to the Commission a copy of the instruments defining the rights of holders of its (a) 5.00% Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million and (b) 6.75% Fixed-to-Floating Rate Subordinated Notes due 2028 in aggregate principal amount of $65 million. |
| 31.1        | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 (1) |
| 31.2        | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 (1) |
| 32          | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) |
| 101.INS     | XBRL Instance Document (2) |
| 101.SCH     | XBRL Taxonomy Extension Schema Document (2) |
| 101.CAL     | XBRL Taxonomy Extension Calculation Linkbase Document (2) |
| 101.DEF     | XBRL Taxonomy Extension Definition Linkbase Document (2) |
| 101.LAB     | XBRL Taxonomy Extension Label Linkbase Document (2) |
| 101.PRE     | XBRL Taxonomy Extension Presentation Linkebase Document (2) |
|        |   |
|        |   |
|        | (1) Filed herewith. |
|        | (2) Furnished herewith. |