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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 | 34 |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk | 43 |
| Item 4.                       | Controls and Procedures | 44 |
|                          |   |   |
| Part II. Other Information    |   |
| Item 1.                       | Legal Proceedings | 45 |
| Item 1A.                      | Risk Factors | 45 |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds | 45 |
| Item 3.                       | Defaults Upon Senior Securities | 45 |
| Item 4.                       | Mine Safety Disclosures | 45 |
| Item 5.                       | Other Information | 45 |
| Item 6.                       | Exhibits | 46 |
|                          | Signatures | 47 |
|                          | Index to Exhibits | 48 |

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Table of Contents

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |
|                                                                              | March 31, 2013 |  | December 31, 2012 |
|                                                                              | (Unaudited) |  |
| ASSETS                                                                       |   |  |   |
| Cash and cash equivalents                                                    | $ | 51,592 |  |  | $ | 101,460 |  |
| Interest-bearing time deposits                                               | 60,407 |  |  | 38,443 |  |
| Investment securities available for sale                                     | 532,867 |  |  | 513,343 |  |
| Investment securities held to maturity (fair value of $351,439 and $378,174) | 336,696 |  |  | 361,020 |  |
| Mortgage loans held for sale                                                 | 26,555 |  |  | 22,300 |  |
| Loans, net of allowance for loan losses of $68,537 and $69,366          | 2,811,005 |  |  | 2,832,843 |  |
| Premises and equipment                                                       | 53,762 |  |  | 52,749 |  |
| Federal Reserve and Federal Home Loan Bank stock                             | 32,777 |  |  | 32,785 |  |
| Interest receivable                                                          | 15,346 |  |  | 16,367 |  |
| Core deposit intangibles                                                     | 7,767 |  |  | 8,154 |  |
| Goodwill                                                                     | 141,375 |  |  | 141,375 |  |
| Cash surrender value of life insurance                                       | 126,098 |  |  | 125,397 |  |
| Other real estate owned                                                      | 13,130 |  |  | 13,263 |  |
| Tax asset, deferred and receivable                                           | 27,597 |  |  | 30,867 |  |
| Other assets                                                                 | 15,856 |  |  | 14,455 |  |
| TOTAL ASSETS                                                                 | $ | 4,252,830 |  |  | $ | 4,304,821 |  |
| LIABILITIES                                                                  |   |  |   |
| Deposits:                                                                    |   |  |   |
| Noninterest-bearing                                                          | $ | 763,965 |  |  | $ | 801,597 |  |
| Interest-bearing                                                             | 2,546,843 |  |  | 2,544,786 |  |
| Total Deposits                                                               | 3,310,808 |  |  | 3,346,383 |  |
| Borrowings:                                                                  |   |  |   |
| Federal funds purchased                                                      |  |  |  | 18,862 |  |
| Securities sold under repurchase agreements                                  | 161,813 |  |  | 141,828 |  |
| Federal Home Loan Bank advances                                              | 93,169 |  |  | 94,238 |  |
| Subordinated debentures and term loans                                       | 111,778 |  |  | 112,161 |  |
| Total Borrowings                                                             | 366,760 |  |  | 367,089 |  |
| Interest payable                                                             | 1,348 |  |  | 1,841 |  |
| Other liabilities                                                            | 35,356 |  |  | 37,272 |  |
| Total Liabilities                                                            | 3,714,272 |  |  | 3,752,585 |  |
| COMMITMENTS AND CONTINGENT LIABILITIES                                       |  |  |  |  |  |
| STOCKHOLDERS' EQUITY                                                         |  |  |  |
| Preferred Stock, no-par value, $1,000 liquidation value:                     |   |  |   |
| Authorized - 500,000 shares                                                  |   |  |   |
| Senior Non-Cumulative Perpetual Preferred Stock, Series B                    |   |  |   |
| Issued and outstanding - 68,087 and 90,782.94 shares                         | 68,087 |  |  | 90,783 |  |
| 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 - 28,780,609 and 28,692,616 shares                    | 3,598 |  |  | 3,587 |  |
| Additional paid-in capital                                                   | 256,966 |  |  | 256,843 |  |
| Retained earnings                                                            | 216,530 |  |  | 206,397 |  |
| Accumulated other comprehensive loss                                         | (6,748 | ) |  | (5,499 | ) |
| Total Stockholders' Equity                                                   | 538,558 |  |  | 552,236 |  |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                   | $ | 4,252,830 |  |  | $ | 4,304,821 |  |

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Table of Contents

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                              | Three Months EndedMarch 31, |
|                                                         | 2013 |  | 2012 |
| INTEREST INCOME                                              |   |  |   |
| Loans receivable:                                            |  |  |  |
| Taxable                                                      | $ | 37,159 |  |  | $ | 35,848 |  |
| Tax exempt                                                   | 117 |  |  | 117 |  |
| Investment securities:                                       |   |  |   |
| Taxable                                                      | 3,618 |  |  | 4,574 |  |
| Tax exempt                                                   | 2,454 |  |  | 2,562 |  |
| Deposits with financial institutions                         | 19 |  |  | 25 |  |
| Federal Reserve and Federal Home Loan Bank stock             | 371 |  |  | 343 |  |
| Total Interest Income                                        | 43,738 |  |  | 43,469 |  |
| INTEREST EXPENSE                                             |   |  |   |
| Deposits                                                     | 2,891 |  |  | 4,110 |  |
| Federal funds purchased                                      | 11 |  |  | 12 |  |
| Securities sold under repurchase agreements                  | 194 |  |  | 295 |  |
| Federal Home Loan Bank advances                              | 459 |  |  | 994 |  |
| Subordinated debentures and term loans                       | 725 |  |  | 1,942 |  |
| Total Interest Expense                                       | 4,280 |  |  | 7,353 |  |
| NET INTEREST INCOME                                          | 39,458 |  |  | 36,116 |  |
| Provision for loan losses                                    | 2,102 |  |  | 4,875 |  |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES          | 37,356 |  |  | 31,241 |  |
| OTHER INCOME                                                 |   |  |   |
| Service charges on deposit accounts                          | 2,729 |  |  | 2,819 |  |
| Fiduciary activities                                         | 2,107 |  |  | 1,983 |  |
| Other customer fees                                          | 2,780 |  |  | 2,586 |  |
| Commission income                                            | 2,172 |  |  | 1,667 |  |
| Earnings on cash surrender value of life insurance           | 700 |  |  | 1,378 |  |
| Net gains and fees on sales of loans                         | 2,378 |  |  | 1,952 |  |
| Net realized gains on sales of available for sale securities | 248 |  |  | 789 |  |
| Gain on FDIC modified whole bank transaction                 |  |  | 9,124 |  |
| Other income                                                 | 763 |  |  | 360 |  |
| Total Other Income                                           | 13,877 |  |  | 22,658 |  |
| OTHER EXPENSES                                               |   |  |   |
| Salaries and employee benefits                               | 20,791 |  |  | 19,354 |  |
| Net occupancy                                                | 2,602 |  |  | 2,651 |  |
| Equipment                                                    | 1,774 |  |  | 1,805 |  |
| Marketing                                                    | 467 |  |  | 442 |  |
| Outside data processing fees                                 | 1,480 |  |  | 1,376 |  |
| Printing and office supplies                                 | 331 |  |  | 267 |  |
| Core deposit amortization                                    | 387 |  |  | 469 |  |
| FDIC assessments                                             | 744 |  |  | 1,117 |  |
| Other real estate owned and credit-related expenses          | 1,866 |  |  | 2,186 |  |
| Other expenses                                               | 4,258 |  |  | 4,361 |  |
| Total Other Expenses                                         | 34,700 |  |  | 34,028 |  |
| INCOME BEFORE INCOME TAX                                     | 16,533 |  |  | 19,871 |  |
| Income tax expense                                           | 4,668 |  |  | 5,500 |  |
| NET INCOME                                                   | 11,865 |  |  | 14,371 |  |
| Preferred stock dividends and discount accretion             | (857 | ) |  | (1,135 | ) |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS                  | $ | 11,008 |  |  | $ | 13,236 |  |
| Per Share Data:                                              |   |  |   |
| Basic Net Income Available to Common Stockholders            | $ | 0.38 |  |  | $ | 0.46 |  |
| Diluted Net Income Available to Common Stockholders          | $ | 0.38 |  |  | $ | 0.46 |  |
| Cash Dividends Paid                                          | $ | 0.03 |  |  | $ | 0.01 |  |
| Average Diluted Shares Outstanding (in thousands)            | 28,971 |  |  | 28,755 |  |

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|                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                      |  |  |  |  |  |  |  |
|                                                                                                                                                                                      | Three Months EndedMarch 31, |
|                                                                                                                                                                                 | 2013 |   | 2012 |
| Net income                                                                                                                                                                           | $ | 11,865 |  |  | $ | 14,371 |  |
| Other comprehensive income net of tax:                                                                                                                                               |   |  |   |
| Unrealized holding loss on securities available for sale arising during the period, net of income tax of $1,139 and $11                                                              | (2,115 | ) |  | (20 | ) |
| Unrealized gain (loss) on securities available for sale for which a portion of an other than temporary impairment has been recognized in income, net of tax of  $39 and $7 | 72 |  |  | (14 | ) |
| Unrealized gain on cash flow hedges arising during the period, net of income tax of $104 and $163                                                                                    | 193 |  |  | 303 |  |
| Amortization of items previously recorded in accumulated other comprehensive income, net of income tax of $345 and $282                                                              | 640 |  |  | 521 |  |
| Reclassification adjustment for gains included in net income net of income tax expense of $21 and $276                                                                               | (39 | ) |  | (513 | ) |
|                                                                                                                                                                                 | (1,249 | ) |  | 277 |  |
| Comprehensive income                                                                                                                                                                 | $ | 10,616 |  |  | $ | 14,648 |  |

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|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Preferred |  | Common Stock |  | Additional |  |  |  | AccumulatedOther |  |  |
|                                                                    | Shares |  | Amount |  | Shares |  | Amount |  | Paid inCapital |  | RetainedEarnings |  | ComprehensiveLoss |  | Total |
| Balances, December 31, 2012                                        | 90,908 |  |  | $ | 90,908 |  |  | 28,692,616 |  |  | $ | 3,587 |  |  | $ | 256,843 |  |  | $ | 206,397 |  |  | $ | (5,499 | ) |  | $ | 552,236 |  |
| Comprehensive Income                                               |   |  |   |  |   |  |   |  |   |  |   |  |   |  |  |
| Net Income                                                         |   |  |   |  |   |  |   |  |   |  | 11,865 |  |  |   |  | 11,865 |  |
| Other Comprehensive Income, net of tax                             |   |  |   |  |   |  |   |  |   |  |   |  | (1,249 | ) |  | (1,249 | ) |
| Cash Dividends on Common Stock ($.03 per Share)                    |   |  |   |  |   |  |   |  |   |  | (875 | ) |  |   |  | (875 | ) |
| Cash Dividends on Preferred Stock under SmallBusiness Lending Fund |   |  |   |  |   |  |   |  |   |  | (857 | ) |  |   |  | (857 | ) |
| Preferred Stock redeemed under Small Business Lending Fund         | (22,696 | ) |  | (22,696 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22,696 | ) |
| Share-based Compensation                                           |   |  |   |  | 101,681 |  |  | 13 |  |  | 361 |  |  |   |  |   |  | 374 |  |
| Stock Issued Under Employee Benefit Plans                          |   |  |   |  | 11,997 |  |  | 1 |  |  | 154 |  |  |   |  |   |  | 155 |  |
| Stock Issued Under Dividend Reinvestment andStock Purchase Plan    |   |  |   |  | 4,052 |  |  | 1 |  |  | 62 |  |  |   |  |   |  | 63 |  |
| Stock options exercised                                            |   |  |   |  | 2,250 |  |  |   |  |  | 16 |  |  |   |  |   |  | 16 |  |
| Stock Redeemed                                                     |   |  |   |  | (31,987 | ) |  | (4 | ) |  | (470 | ) |  |   |  |   |  | (474 | ) |
| Balances, March 31, 2013                                           | 68,212 |  |  | $ | 68,212 |  |  | 28,780,609 |  |  | $ | 3,598 |  |  | $ | 256,966 |  |  | $ | 216,530 |  |  | $ | (6,748 | ) |  | $ | 538,558 |  |

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Table of Contents

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | March 31, |
|                                                                              | 2013 |  | 2012 |
| Cash Flow From Operating Activities:                                              |   |  |   |
| Net income                                                                        | $ | 11,865 |  |  | $ | 14,371 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |  |   |
| Provision for loan losses                                                         | 2,102 |  |  | 4,875 |  |
| Depreciation and amortization                                                     | 1,069 |  |  | 1,149 |  |
| Change in deferred taxes                                                          | 5,574 |  |  | 4,682 |  |
| Share-based compensation                                                          | 374 |  |  | 326 |  |
| Mortgage loans originated for sale                                                | (92,411 | ) |  | (91,199 | ) |
| Proceeds from sales of mortgage loans                                             | 88,156 |  |  | 86,925 |  |
| Gain on acquisition                                                               |  |  |  | (9,124 | ) |
| Gains on sales of securities available for sale                                   | (248 | ) |  | (789 | ) |
| Change in interest receivable                                                     | 1,021 |  |  | 1,521 |  |
| Change in interest payable                                                        | (493 | ) |  | (1,198 | ) |
| Other adjustments                                                                 | (5,168 | ) |  | (1,023 | ) |
| Net cash provided by operating activities                                         | $ | 11,841 |  |  | $ | 10,516 |  |
| Cash Flows from Investing Activities:                                             |   |  |   |
| Net change in interest-bearing deposits                                           | $ | (21,964 | ) |  | $ | 18,561 |  |
| Purchases of:                                                                     |   |  |   |
| Securities available for sale                                                     | (73,470 | ) |  | (52,706 | ) |
| Securities held to maturity                                                       |  |  |  | (566 | ) |
| Proceeds from sales of securities available for sale                              | 21,721 |  |  | 21,928 |  |
| Proceeds from maturities of:                                                      |   |  |   |
| Securities available for sale                                                     | 31,542 |  |  | 22,653 |  |
| Securities held to maturity                                                       | 23,628 |  |  | 14,949 |  |
| Change in Federal Reserve and Federal Home Loan Bank stock                        | 8 |  |  | 5 |  |
| Net change in loans                                                               | 16,561 |  |  | 6,390 |  |
| Net cash received from acquisition                                                |  |  |  | 29,113 |  |
| Proceeds from the sale of other real estate owned                                 | 2,536 |  |  | 1,983 |  |
| Other adjustments                                                                 | (2,082 | ) |  | (719 | ) |
| Net cash provided (used) by investing activities                                  | $ | (1,520 | ) |  | $ | 61,591 |  |
| Cash Flows from Financing Activities:                                             |   |  |   |
| Net change in :                                                                   |   |  |   |
| Demand and savings deposits                                                       | $ | 3,062 |  |  | $ | 22,890 |  |
| Certificates of deposit and other time deposits                                   | (38,637 | ) |  | (3,876 | ) |
| Borrowings                                                                        | 19,985 |  |  | 10,936 |  |
| Repayment of borrowings                                                           | (19,931 | ) |  | (112,878 | ) |
| Cash dividends on common stock                                                    | (875 | ) |  | (289 | ) |
| Cash dividends on preferred stock                                                 | (857 | ) |  | (1,135 | ) |
| Stock issued under employee benefit plans                                         | 155 |  |  | 119 |  |
| Stock issued under dividend reinvestment and stock purchase plans                 | 63 |  |  | 29 |  |
| Stock options exercised                                                           | 16 |  |  |   |
| Stock redeemed                                                                    | (474 | ) |  | (224 | ) |
| Cumulative preferred stock redeemed (SBLF)                                        | (22,696 | ) |  |   |  |
| Net cash used in financing activities                                             | $ | (60,189 | ) |  | $ | (84,428 | ) |
| Net Change in Cash and Cash Equivalents                                           | (49,868 | ) |  | (12,321 | ) |
| Cash and Cash Equivalents, January 1                                              | 101,460 |  |  | 73,312 |  |
| Cash and Cash Equivalents, March 31                                               | $ | 51,592 |  |  | $ | 60,991 |  |
| Additional cash flow information:                                                 |   |  |   |
| Interest paid                                                                     | $ | 4,773 |  |  | $ | 8,184 |  |
| Income tax paid (refunded)                                                        | $ | 104 |  |  | $ | 1,000 |  |
| Loans transferred to other real estate owned                                      | $ | 3,175 |  |  | $ | 2,425 |  |
| Non-cash investing activities using trade date accounting                         | $ | 4,489 |  |  | $ | 2,390 |  |
| Liabilities assumed, net of cash                                                  |   |   | $ | 166,112 |  |

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|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
| Assets                                    |   | Liabilities |   |
| Cash and due from banks (1)               | $ | 29,113 |  | Deposits: |   |
| Investment securities, available for sale | 18,896 |  | Non-interest bearing | $ | 13,715 |  |
| Federal Home Loan Bank stock              | 1,761 |  | NOW accounts | 14,746 |  |
| Loans:                                    |   | Savings and money market | 25,843 |  |
| Commercial                                | 51,042 |  | Certificate of deposit | 71,605 |  |
| Residential mortgage                      | 11,181 |  | Total Deposits | 125,909 |  |
| Installment                               | 31,570 |  |   |   |
| Total Loans                               | 93,793 |  | Federal Home Loan Bank advances | 10,286 |  |
|                                      |   | Other liabilities | 804 |  |
| Premises                                  | 1,516 |  | Total Liabilities Assumed | $ | 136,999 |  |
| Core deposit intangible                   | 484 |  |   |   |
| Other assets                              | 560 |  | Net Gain on Acquisition | $ | 9,124 |  |
| Total Assets Purchased                    | $ | 146,123 |  |   |   |

|     |                                                       |
|-----|-------------------------------------------------------|
| (1) | Includes $17,200,000 cash received from the FDIC. |

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|                                                                                                         |
|---------------------------------------------------------------------------------------------------------|
|                                                                                                         |  |  |  |
| Preliminary estimate of contractually required principal and interest at acquisition                    | $ | 31,143 |  |
| Preliminary estimate of contractual cash flows not expected to be collected (nonaccretable differences) | 9,688 |  |
| Preliminary estimate of expected cash flows at acquisition                                              | 21,455 |  |
| Preliminary estimate of interest component of expected cash flows (accretable discount)                 | 4,152 |  |
| Preliminary estimate of fair value of acquired loans accounted for under ASC 310-30                     | $ | 17,303 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | AmortizedCost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | FairValue |
| Available for sale at March 31, 2013                 |   |  |   |  |   |  |   |
| U.S. Government-sponsored agency securities          | $ | 4,228 |  |  | $ | 159 |  |  |   |  | $ | 4,387 |  |
| State and municipal                                  | 151,379 |  |  | 8,615 |  |  | $ | 122 |  |  | 159,872 |  |
| U.S. Government-sponsored mortgage-backed securities | 357,307 |  |  | 9,444 |  |  | 216 |  |  | 366,535 |  |
| Corporate obligations                                | 6,173 |  |  |   |  | 5,806 |  |  | 367 |  |
| Equity securities                                    | 1,706 |  |  |   |  |   |  | 1,706 |  |
| Total available for sale                             | 520,793 |  |  | 18,218 |  |  | 6,144 |  |  | 532,867 |  |
| Held to maturity at March 31, 2013                   |   |  |   |  |   |  |   |
| State and municipal                                  | 112,390 |  |  | 4,120 |  |  | 1 |  |  | 116,509 |  |
| U.S. Government-sponsored mortgage-backed securities | 224,306 |  |  | 10,687 |  |  | 63 |  |  | 234,930 |  |
| Total held to maturity                               | 336,696 |  |  | 14,807 |  |  | 64 |  |  | 351,439 |  |
| Total Investment Securities                          | $ | 857,489 |  |  | $ | 33,025 |  |  | $ | 6,208 |  |  | $ | 884,306 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | AmortizedCost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | FairValue |
| Available for sale at December 31, 2012              |   |  |   |  |   |  |   |
| U.S. Government-sponsored agency securities          | $ | 4,475 |  |  | $ | 165 |  |  |   |  | $ | 4,640 |  |
| State and municipal                                  | 148,187 |  |  | 10,025 |  |  | $ | 18 |  |  | 158,194 |  |
| U.S. Government-sponsored mortgage-backed securities | 337,631 |  |  | 10,994 |  |  | 46 |  |  | 348,579 |  |
| Corporate obligations                                | 6,105 |  |  |   |  | 5,881 |  |  | 224 |  |
| Equity securities                                    | 1,706 |  |  |   |  |   |  | 1,706 |  |
| Total available for sale                             | 498,104 |  |  | 21,184 |  |  | 5,945 |  |  | 513,343 |  |
| Held to maturity at December 31, 2012                |   |  |   |  |   |  |   |
| State and municipal                                  | 117,227 |  |  | 5,489 |  |  | 1 |  |  | 122,715 |  |
| U.S. Government-sponsored mortgage-backed securities | 243,793 |  |  | 11,681 |  |  | 15 |  |  | 255,459 |  |
| Total held to maturity                               | 361,020 |  |  | 17,170 |  |  | 16 |  |  | 378,174 |  |
| Total Investment Securities                          | $ | 859,124 |  |  | $ | 38,354 |  |  | $ | 5,961 |  |  | $ | 891,517 |  |

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|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | Available for Sale |  | Held to Maturity |
|                                                 | AmortizedCost |  | FairValue |  | AmortizedCost |  | FairValue |
| Maturity Distribution at March 31, 2013:             |   |  |   |  |   |  |   |
| Due in one year or less                              | $ | 2,811 |  |  | $ | 2,866 |  |  | $ | 1,755 |  |  | $ | 1,759 |  |
| Due after one through five years                     | 15,341 |  |  | 16,043 |  |  | 4,929 |  |  | 5,295 |  |
| Due after five through ten years                     | 55,107 |  |  | 58,080 |  |  | 55,406 |  |  | 57,228 |  |
| Due after ten years                                  | 88,521 |  |  | 87,637 |  |  | 50,300 |  |  | 52,227 |  |
|                                                 | $ | 161,780 |  |  | $ | 164,626 |  |  | $ | 112,390 |  |  | $ | 116,509 |  |
| U.S. Government-sponsored mortgage-backed securities | 357,307 |  |  | 366,535 |  |  | 224,306 |  |  | 234,930 |  |
| Equity securities                                    | 1,706 |  |  | 1,706 |  |  |  |  |  |
| Total Investment Securities                          | $ | 520,793 |  |  | $ | 532,867 |  |  | $ | 336,696 |  |  | $ | 351,439 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
|                                                         | Three Months EndedMarch 31, |
|                                                         | 2013 |  | 2012 |
| Sales and Redemptions of Available for Sale Securities: |   |  |   |
| Gross gains                                             | $ | 248 |  |  | $ | 789 |  |
| Gross losses                                            | — |  |  | — |  |
| Other-than-temporary impairment losses                  | — |  |  | — |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | Less than12 Months |  | 12 Months or Longer |  | Total |
|                                                 | FairValue |  | GrossUnrealizedLosses |  | FairValue |  | GrossUnrealizedLosses |  | FairValue |  | GrossUnrealizedLosses |
| Temporarily Impaired Investment                      |   |  |   |  |   |  |   |  |   |  |   |
| Securities at March 31, 2013                         |   |  |   |  |   |  |   |  |   |  |   |
| State and municipal                                  | $ | 10,702 |  |  | $ | 123 |  |  |   |  |   |  | $ | 10,702 |  |  | $ | 123 |  |
| U.S. Government-sponsored mortgage-backed securities | 27,183 |  |  | 279 |  |  |   |  |   |  | 27,183 |  |  | 279 |  |
| Corporate obligations                                |   |  |   |  | $ | 336 |  |  | $ | 5,806 |  |  | 336 |  |  | 5,806 |  |
| Total Temporarily Impaired Investment Securities     | $ | 37,885 |  |  | $ | 402 |  |  | $ | 336 |  |  | $ | 5,806 |  |  | $ | 38,221 |  |  | $ | 6,208 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | Less than12 Months |  | 12 Months or Longer |  | Total |
|                                                 | FairValue |  | GrossUnrealized Losses |  | FairValue |  | GrossUnrealized Losses |  | FairValue |  | GrossUnrealized Losses |
| Temporarily Impaired Investment                      |   |  |   |  |   |  |   |  |   |  |   |
| Securities at December 31, 2012                      |   |  |   |  |   |  |   |  |   |  |   |
| State and municipal                                  | $ | 4,524 |  |  | $ | 19 |  |  |   |  |   |  | $ | 4,524 |  |  | $ | 19 |  |
| U.S. Government-sponsored mortgage-backed securities | 12,320 |  |  | 61 |  |  |   |  |   |  | 12,320 |  |  | 61 |  |
| Corporate obligations                                |   |  |   |  | $ | 194 |  |  | $ | 5,881 |  |  | 194 |  |  | 5,881 |  |
| Total Temporarily Impaired Investment Securities     | $ | 16,844 |  |  | $ | 80 |  |  | $ | 194 |  |  | $ | 5,881 |  |  | $ | 17,038 |  |  | $ | 5,961 |  |

----

Table of Contents

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |
|                                                                                | March 31, 2013 |  | December 31, 2012 |
| Investments reported at less than historical cost:                             |   |  |   |
| Historical cost                                                                | $ | 44,428 |  |  | $ | 22,999 |  |
| Fair value                                                                     | $ | 38,221 |  |  | $ | 17,038 |  |
| Percent of the Corporation's available for sale and held to maturity portfolio | 4.4 | % |  | 1.9 | % |

----

Table of Contents

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |
|                                                                       | AccumulatedCredit Losses in2013 |  | AccumulatedCredit Losses in2012 |
| Credit losses on debt securities held:                                     |   |  |   |
| Balance, January 1                                                         | $ | 11,355 |  |  | $ | 11,355 |  |
| Additions related to other-than-temporary losses not previously recognized |  |  |  |  |
| Balance, March 31                                                          | $ | 11,355 |  |  | $ | 11,355 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |
|                                                                  | March 31, 2013 |  | December 31, 2012 |
| Loans:                                                           |   |  |   |
| Commercial and industrial loans                                  | $ | 637,952 |  |  | $ | 622,579 |  |
| Agricultural production financing and other loans to farmers     | 104,284 |  |  | 112,527 |  |
| Real estate loans:                                               |   |  |   |
| Construction                                                     | 75,877 |  |  | 98,639 |  |
| Commercial and farmland                                          | 1,280,611 |  |  | 1,266,682 |  |
| Residential                                                      | 467,629 |  |  | 473,537 |  |
| Home Equity                                                      | 201,767 |  |  | 203,406 |  |
| Individuals' loans for household and other personal expenditures | 73,314 |  |  | 75,748 |  |
| Lease financing receivables, net of unearned income              | 2,013 |  |  | 2,590 |  |
| Other loans                                                      | 36,095 |  |  | 46,501 |  |
|  Loans                                                      | 2,879,542 |  |  | 2,902,209 |  |
| Allowance for loan losses                                        | (68,537 | ) |  | (69,366 | ) |
| Net Loans                                                        | $ | 2,811,005 |  |  | $ | 2,832,843 |  |

----

Table of Contents

----

Table of Contents

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | Three Months Ended March 31, 2013 |
|                       | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance for loan losses: |   |  |   |  |   |  |   |  |   |  |   |
| Balances, January 1        | $ | 25,913 |  |  | $ | 26,703 |  |  | $ | 2,593 |  |  | $ | 14,157 |  |  |   |  | $ | 69,366 |  |
| Provision for losses       | 358 |  |  | (755 | ) |  | 73 |  |  | 2,406 |  |  | $ | 20 |  |  | 2,102 |  |
| Recoveries on loans        | 1,873 |  |  | 1,376 |  |  | 209 |  |  | 288 |  |  |   |  | 3,746 |  |
| Loans charged off          | (2,773 | ) |  | (2,346 | ) |  | (186 | ) |  | (1,372 | ) |  |   |  | (6,677 | ) |
| Balances, March 31, 2013   | $ | 25,371 |  |  | $ | 24,978 |  |  | $ | 2,689 |  |  | $ | 15,479 |  |  | $ | 20 |  |  | $ | 68,537 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | Three Months Ended March 31, 2012 |
|                       | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance for loan losses: |   |  |   |  |   |  |   |  |   |  |   |
| Balances, January 1        | $ | 17,731 |  |  | $ | 37,919 |  |  | $ | 2,902 |  |  | $ | 12,343 |  |  | $ | 3 |  |  | $ | 70,898 |  |
| Provision for losses       | 577 |  |  | 1,778 |  |  | 16 |  |  | 2,508 |  |  | (4 | ) |  | 4,875 |  |
| Recoveries on loans        | 148 |  |  | 228 |  |  | 208 |  |  | 313 |  |  | 1 |  |  | 898 |  |
| Loans charged off          | (2,882 | ) |  | (2,018 | ) |  | (321 | ) |  | (1,081 | ) |  |   |  | (6,302 | ) |
| Balances, March 31, 2012   | $ | 15,574 |  |  | $ | 37,907 |  |  | $ | 2,805 |  |  | $ | 14,083 |  |  | $ | — |  |  | $ | 70,369 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | March 31, 2013 |
|                                            | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance Balances:                             |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 838 |  |  | $ | 2,373 |  |  |  |  | $ | 297 |  |  |   |  | $ | 3,508 |  |
| Collectively evaluated for impairment           | 24,533 |  |  | 22,508 |  |  | $ | 2,689 |  |  | 15,165 |  |  | $ | 20 |  |  | 64,915 |  |
| Loans Acquired with Deteriorated Credit Quality |  |  |  | $ | 97 |  |  |  |  |  | $ | 17 |  |  |  |  | 114 |  |
| Total Allowance for Loan Losses                 | $ | 25,371 |  |  | $ | 24,978 |  |  | $ | 2,689 |  |  | $ | 15,479 |  |  | $ | 20 |  |  | $ | 68,537 |  |
| Loan Balances:                                  |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 11,057 |  |  | $ | 39,154 |  |  |   |  | $ | 7,776 |  |  |   |  | $ | 57,987 |  |
| Collectively evaluated for impairment           | 766,238 |  |  | 1,307,663 |  |  | $ | 73,314 |  |  | 660,897 |  |  | $ | 2,013 |  |  | 2,810,125 |  |
| Loans Acquired with Deteriorated Credit Quality | 1,037 |  |  | 9,669 |  |  |  |  |  | 724 |  |  |  |  |  | 11,430 |  |
| Loans                                           | $ | 778,332 |  |  | $ | 1,356,486 |  |  | $ | 73,314 |  |  | $ | 669,397 |  |  | $ | 2,013 |  |  | $ | 2,879,542 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | December 31, 2012 |
|                                            | Commercial |  | CommercialReal Estate |  | Consumer |  | Residential |  | FinanceLeases |  | Total |
| Allowance Balances:                             |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 1,628 |  |  | $ | 2,565 |  |  |   |  | $ | 50 |  |  |   |  | $ | 4,243 |  |
| Collectively evaluated for impairment           | 24,285 |  |  | 24,138 |  |  | $ | 2,593 |  |  | 14,107 |  |  |   |  | 65,123 |  |
| Total Allowance for Loan Losses                 | $ | 25,913 |  |  | $ | 26,703 |  |  | $ | 2,593 |  |  | $ | 14,157 |  |  |   |  | $ | 69,366 |  |
| Loan Balances:                                  |   |  |   |  |   |  |   |  |   |  |   |
| Individually evaluated for impairment           | $ | 14,190 |  |  | $ | 45,394 |  |  |   |  | $ | 8,515 |  |  |   |  | $ | 68,099 |  |
| Collectively evaluated for impairment           | 765,707 |  |  | 1,309,912 |  |  | $ | 75,748 |  |  | 667,401 |  |  | $ | 2,590 |  |  | 2,821,358 |  |
| Loans Acquired with Deteriorated Credit Quality | 1,710 |  |  | 10,015 |  |  |  |  |  | 1,027 |  |  |  |  |  | 12,752 |  |
| Loans                                           | $ | 781,607 |  |  | $ | 1,365,321 |  |  | $ | 75,748 |  |  | $ | 676,943 |  |  | $ | 2,590 |  |  | $ | 2,902,209 |  |

----

Table of Contents

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |
|                                                             | March 31, 2013 |  | December 31, 2012 |
| Commercial and industrial                                   | $ | 9,462 |  |  | $ | 12,195 |  |
| Agriculture Production financing and other loans to farmers | 86 |  |  |  |
| Real Estate Loans:                                          |   |  |   |
| Construction                                                | 3,786 |  |  | 4,814 |  |
| Commercial and farmland                                     | 19,303 |  |  | 22,612 |  |
| Residential                                                 | 11,856 |  |  | 11,476 |  |
| Home Equity                                                 | 2,268 |  |  | 1,997 |  |
| Lease financing receivables, net of unearned income         |  |  |  | 301 |  |
| Other Loans                                                 |  |  |  | 4 |  |
| Total                                                       | $ | 46,761 |  |  | $ | 53,399 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |
|                                                        |   |  |   |  |   |
|                                                        | March 31, 2013 |
|                                                        | UnpaidPrincipalBalance |  | RecordedInvestment |  | RelatedAllowance |
| Impaired loans with no related allowance:                   |   |  |   |  |  |
| Commercial and industrial                                   | $ | 20,987 |  |  | $ | 7,628 |  |  |  |  |
| Agriculture production financing and other loans to farmers | 86 |  |  | 86 |  |  |  |  |
| Real Estate Loans:                                          |   |  |   |  |  |
| Construction                                                | 6,008 |  |  | 3,928 |  |  |  |  |
| Commercial and farmland                                     | 52,030 |  |  | 37,803 |  |  |  |  |
| Residential                                                 | 7,039 |  |  | 4,650 |  |  |  |  |
| Home equity                                                 | 4,083 |  |  | 896 |  |  |  |  |
| Other loans                                                 | 57 |  |  | 9 |  |  |  |  |
| Total                                                       | $ | 90,290 |  |  | $ | 55,000 |  |  |  |  |
| Impaired loans with related allowance:                      |   |  |   |  |   |
| Commercial and industrial                                   | $ | 5,751 |  |  | $ | 4,370 |  |  | $ | 838 |  |
| Real Estate Loans:                                          |   |  |   |  |   |
| Construction                                                | 1,025 |  |  | 911 |  |  | 85 |  |
| Commercial and farmland                                     | 5,875 |  |  | 5,406 |  |  | 2,385 |  |
| Residential                                                 | 2,725 |  |  | 2,390 |  |  | 314 |  |
| Total                                                       | $ | 15,376 |  |  | $ | 13,077 |  |  | $ | 3,622 |  |
| Total Impaired Loans                                        | $ | 105,666 |  |  | $ | 68,077 |  |  | $ | 3,622 |  |

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Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |
|                                      | December 31, 2012 |
|                                      | UnpaidPrincipalBalance |  | RecordedInvestment |  | RelatedAllowance |
| Impaired loans with no related allowance: |   |  |   |  |   |
| Commercial and industrial                 | $ | 28,532 |  |  | $ | 11,730 |  |  |  |  |
| Real Estate Loans:                        |   |  |   |  |   |
| Construction                              | 9,787 |  |  | 5,164 |  |  |  |  |
| Commercial and farmland                   | 58,173 |  |  | 43,204 |  |  |  |  |
| Residential                               | 8,820 |  |  | 6,215 |  |  |  |  |
| Home equity                               | 4,199 |  |  | 1,006 |  |  |  |  |
| Other loans                               | 83 |  |  | 14 |  |  |  |  |
| Total                                     | $ | 109,594 |  |  | $ | 67,333 |  |  |  |  |
| Impaired loans with related allowance:    |   |  |   |  |   |
| Commercial and industrial                 | $ | 4,415 |  |  | $ | 4,155 |  |  | $ | 1,628 |  |
| Real Estate Loans:                        |   |  |   |  |   |
| Construction                              | 1,202 |  |  | 1,058 |  |  | 105 |  |
| Commercial and farmland                   | 5,579 |  |  | 5,182 |  |  | 2,460 |  |
| Residential                               | 1,722 |  |  | 1,451 |  |  | 50 |  |
| Total                                     | $ | 12,918 |  |  | $ | 11,846 |  |  | $ | 4,243 |  |
| Total Impaired Loans                      | $ | 122,512 |  |  | $ | 79,179 |  |  | $ | 4,243 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |
|                                                        | Three Months Ended March 31, 2013 |
|                                                        | AverageRecorded Investment |  | InterestIncome Recognized |
| Impaired loans with no related allowance:                   |   |  |   |
| Commercial and industrial                                   | $ | 8,043 |  |  | $ | 44 |  |
| Agriculture production financing and other loans to farmers | 86 |  |  |   |
| Real Estate Loans:                                          |   |  |   |
| Construction                                                | 3,936 |  |  | 19 |  |
| Commercial and farmland                                     | 39,228 |  |  | 382 |  |
| Residential                                                 | 4,737 |  |  | 22 |  |
| Home equity                                                 | 923 |  |  | 3 |  |
| Other loans                                                 | 10 |  |  |   |
| Total                                                       | $ | 56,963 |  |  | $ | 470 |  |
| Impaired loans with related allowance:                      |   |  |   |
| Commercial and industrial                                   | $ | 5,124 |  |  | $ | 3 |  |
| Real Estate Loans:                                          |   |  |   |
| Construction                                                | 915 |  |  |   |
| Commercial and farmland                                     | 5,428 |  |  |  |
| Residential                                                 | 2,390 |  |  |  |
| Total                                                       | $ | 13,857 |  |  | $ | 3 |  |
| Total Impaired Loans                                        | $ | 70,820 |  |  | $ | 473 |  |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
|                                      | Three Months Ended March 31, 2012 |
|                                      | AverageRecorded Investment |  | InterestIncome Recognized |
| Impaired loans with no related allowance: |   |  |   |
| Commercial and industrial                 | $ | 13,785 |  |  | $ | 37 |  |
| Real Estate Loans:                        |  |  |  |
| Construction                              | 8,994 |  |  | 14 |  |
| Commercial and farmland                   | 50,333 |  |  | 289 |  |
| Residential                               | 6,562 |  |  | 28 |  |
| Home equity                               | 305 |  |  | 3 |  |
| Other loans                               | 20 |  |  |  |
| Total                                     | $ | 79,999 |  |  | $ | 371 |  |
| Impaired loans with related allowance:    |   |  |   |
| Commercial and industrial                 | $ | 7,188 |  |  | $ | 11 |  |
| Real Estate Loans:                        |  |  |  |
| Construction                              | 2,360 |  |  |  |
| Commercial and farmland                   | 5,821 |  |  | 36 |  |
| Residential                               | 1,312 |  |  |  |
| Home equity                               | 215 |  |  |  |
| Total                                     | $ | 16,896 |  |  | $ | 47 |  |
| Total Impaired Loans                      | $ | 96,895 |  |  | $ | 418 |  |

----

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

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | March 31, 2013 |
|                                                             | CommercialPass |  | CommercialSpecialMention |  | Commercial Substandard |  | CommercialDoubtful |  | Commercial Loss |  | Consumer Performing |  | ConsumerNon-Performing |  | Total |
| Commercial and industrial                                        | $ | 588,140 |  |  | $ | 17,592 |  |  | $ | 30,027 |  |  | $ | 2,193 |  |  |  |  |   |  |   |  | $ | 637,952 |  |
| Agriculture production financing and other loans to farmers      | 103,894 |  |  | 217 |  |  | 173 |  |  |   |  |  |  |   |  |   |  | 104,284 |  |
| Real Estate Loans:                                               |   |  |   |  |   |  |   |  |  |  |   |  |   |  |   |
| Construction                                                     | 64,904 |  |  | 1,372 |  |  | 9,091 |  |  |   |  |  |  |   |  | 510 |  |  | 75,877 |  |
| Commercial and farmland                                          | 1,157,933 |  |  | 48,235 |  |  | 73,845 |  |  | 350 |  |  |  |  |   |  | 248 |  |  | 1,280,611 |  |
| Residential                                                      | 145,949 |  |  | 3,480 |  |  | 14,579 |  |  | 144 |  |  |  |  | 296,613 |  |  | 6,864 |  |  | 467,629 |  |
| Home equity                                                      | 10,334 |  |  | 638 |  |  | 1,240 |  |  |   |  |  |  | 187,877 |  |  | 1,678 |  |  | 201,767 |  |
| Individuals' loans for household and other personal expenditures |   |  |   |  |   |  |   |  |  |  | 73,303 |  |  | 11 |  |  | 73,314 |  |
| Lease financing receivables, net of unearned income              | 1,866 |  |  |   |  | 147 |  |  |   |  |  |  |  |  |  |  |  |  | 2,013 |  |
| Other loans                                                      | 36,079 |  |  | 16 |  |  |  |  |  |   |  |  |  |   |  |   |  | 36,095 |  |
| Loans                                                            | $ | 2,109,099 |  |  | $ | 71,550 |  |  | $ | 129,102 |  |  | $ | 2,687 |  |  |  |  | $ | 557,793 |  |  | $ | 9,311 |  |  | $ | 2,879,542 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | December 31, 2012 |
|                                                             | CommercialPass |  | CommercialSpecialMention |  | Commercial Substandard |  | CommercialDoubtful |  | Commercial Loss |  | Consumer Performing |  | ConsumerNon-Performing |  | Total |
| Commercial and industrial                                        | $ | 559,852 |  |  | $ | 23,678 |  |  | $ | 34,460 |  |  | $ | 4,589 |  |  |  |  |   |  |   |  | $ | 622,579 |  |
| Agriculture production financing and other loans to farmers      | 112,209 |  |  | 224 |  |  | 94 |  |  |   |  |  |  |   |  |   |  | 112,527 |  |
| Real Estate Loans:                                               |   |  |   |  |   |  |   |  |  |  |   |  |   |  |   |
| Construction                                                     | 85,728 |  |  | 1,384 |  |  | 11,356 |  |  |   |  |  |  |  |  |  | 171 |  |  | 98,639 |  |
| Commercial and farmland                                          | 1,148,561 |  |  | 38,199 |  |  | 79,078 |  |  | 553 |  |  |  |  |  |  |  | 291 |  |  | 1,266,682 |  |
| Residential                                                      | 145,402 |  |  | 5,437 |  |  | 13,880 |  |  | 922 |  |  |  |  | 301,614 |  |  | 6,282 |  |  | 473,537 |  |
| Home equity                                                      | 9,092 |  |  | 893 |  |  | 1,657 |  |  |   |  |  |  | 189,721 |  |  | 2,043 |  |  | 203,406 |  |
| Individuals' loans for household and other personal expenditures |   |  |   |  |   |  |   |  |  |  | 75,748 |  |  |  |  |  | 75,748 |  |
| Lease financing receivables, net of unearned income              |   |  |   |  |   |  |   |  |  |  | 2,289 |  |  | 301 |  |  | 2,590 |  |
| Other loans                                                      | 46,473 |  |  |  |  |  | 28 |  |  |  |  |  |  |  |   |  |   |  | 46,501 |  |
| Loans                                                            | $ | 2,107,317 |  |  | $ | 69,815 |  |  | $ | 140,553 |  |  | $ | 6,064 |  |  |  |  | $ | 569,372 |  |  | $ | 9,088 |  |  | $ | 2,902,209 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | March 31, 2013 |
|                                                             | Current |  | 30-59 DaysPast Due |  | 60-89 DaysPast Due |  | Loans > 90 DaysAnd Accruing |  | Non-Accrual |  | Total Past Due& Non-Accrual |  | Total |
| Commercial and industrial                                        | $ | 625,645 |  |  | $ | 2,058 |  |  | $ | 596 |  |  | $ | 191 |  |  | $ | 9,462 |  |  | $ | 12,307 |  |  | $ | 637,952 |  |
| Agriculture production financing and other loans to farmers      | 104,198 |  |  |  |  |  |  |  |  |  |  |  | 86 |  |  | 86 |  |  | 104,284 |  |
| Real Estate Loans:                                               |   |  |   |  |   |  |   |  |   |  |   |  |   |
| Construction                                                     | 71,682 |  |  | 373 |  |  | 36 |  |  |   |  | 3,786 |  |  | 4,195 |  |  | 75,877 |  |
| Commercial and farmland                                          | 1,258,913 |  |  | 1,332 |  |  | 1,063 |  |  |  |  |  | 19,303 |  |  | 21,698 |  |  | 1,280,611 |  |
| Residential                                                      | 448,486 |  |  | 5,460 |  |  | 1,194 |  |  | 633 |  |  | 11,856 |  |  | 19,143 |  |  | 467,629 |  |
| Home equity                                                      | 197,003 |  |  | 2,054 |  |  | 335 |  |  | 107 |  |  | 2,268 |  |  | 4,764 |  |  | 201,767 |  |
| Individuals' loans for household and other personal expenditures | 72,771 |  |  | 441 |  |  | 91 |  |  | 11 |  |  |  |  |  | 543 |  |  | 73,314 |  |
| Lease financing receivables, net of unearned income              | 1,886 |  |  | 110 |  |  |   |  | 17 |  |  |  |  |  | 127 |  |  | 2,013 |  |
| Other loans                                                      | 36,095 |  |  |   |  |   |  |   |  |  |  |  |  |  |  | 36,095 |  |
| Loans                                                            | $ | 2,816,679 |  |  | $ | 11,828 |  |  | $ | 3,315 |  |  | $ | 959 |  |  | $ | 46,761 |  |  | $ | 62,863 |  |  | $ | 2,879,542 |  |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | December 31, 2012 |
|                                                             | Current |  | 30-59 DaysPast Due |  | 60-89 DaysPast Due |  | Loans > 90 DaysAnd Accruing |  | Non-Accrual |  | Total Past Due& Non-Accrual |  | Total |
| Commercial and industrial                                        | $ | 607,442 |  |  | $ | 2,628 |  |  | $ | 144 |  |  | $ | 170 |  |  | $ | 12,195 |  |  | $ | 15,137 |  |  | $ | 622,579 |  |
| Agriculture production financing and other loans to farmers      | 112,527 |  |  |  |  |  |  |  |  |  |   |  |  |  |  | 112,527 |  |
| Real Estate Loans:                                               |   |  |   |  |   |  |   |  |   |  |   |  |   |
| Construction                                                     | 93,426 |  |  | 399 |  |  |   |  |  |   |  |  | 4,814 |  |  | 5,213 |  |  | 98,639 |  |
| Commercial and farmland                                          | 1,238,907 |  |  | 3,276 |  |  | 1,822 |  |  | 65 |  |  | 22,612 |  |  | 27,775 |  |  | 1,266,682 |  |
| Residential                                                      | 453,743 |  |  | 5,734 |  |  | 1,338 |  |  | 1,246 |  |  | 11,476 |  |  | 19,794 |  |  | 473,537 |  |
| Home equity                                                      | 199,063 |  |  | 1,467 |  |  | 323 |  |  | 556 |  |  | 1,997 |  |  | 4,343 |  |  | 203,406 |  |
| Individuals' loans for household and other personal expenditures | 74,919 |  |  | 799 |  |  | 30 |  |  |   |  |  |  |  |  | 829 |  |  | 75,748 |  |
| Lease financing receivables, net of unearned income              | 2,289 |  |  |   |  |   |  |   |  | 301 |  |  | 301 |  |  | 2,590 |  |
| Other loans                                                      | 46,497 |  |  |   |  |   |  |   |  | 4 |  |  | 4 |  |  | 46,501 |  |
| Loans                                                            | $ | 2,828,813 |  |  | $ | 14,303 |  |  | $ | 3,657 |  |  | $ | 2,037 |  |  | $ | 53,399 |  |  | $ | 73,396 |  |  | $ | 2,902,209 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended March 31, 2013 |
|                           | Pre-ModificationRecordedBalance |  | Post-ModificationRecordedBalance |  | NumberofLoans |
| Commercial and industrial | $ | 96 |  |  | $ | 96 |  |  | 3 |  |
| Real Estate Loans:        |   |  |   |  |   |
| Commercial and farmland   | 511 |  |  | 431 |  |  | 2 |  |
| Residential               | 37 |  |  | 38 |  |  | 1 |  |
| Total                     | $ | 644 |  |  | $ | 565 |  |  | 6 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended March 31, 2012 |
|                           | Pre-ModificationRecordedBalance |  | Post-ModificationRecordedBalance |  | NumberofLoans |
| Commercial and industrial | $ | 238 |  |  | $ | 238 |  |  | 2 |  |
| Real Estate Loans:        |   |  |   |  |   |
| Commercial and farmland   | 1,774 |  |  | 1,635 |  |  | 2 |  |
| Residential               | 224 |  |  | 224 |  |  | 4 |  |
| Total                     | $ | 2,236 |  |  | $ | 2,097 |  |  | 8 |  |

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Table of Contents

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended March 31, 2013 |
|                           | TermModification |  | RateModification |  | Combination |  | TotalModification |
| Commercial and industrial | $ | 31 |  |  |  |  | $ | 69 |  |  | $ | 100 |  |
| Real Estate Loans:        |   |  |   |  |   |  |   |
| Commercial and farmland   |   |  |  |  | 415 |  |  | 415 |  |
| Residential               |   |  |   |  | 37 |  |  | 37 |  |
| Total                     | $ | 31 |  |  |  |  | $ | 521 |  |  | $ | 552 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended March 31, 2012 |
|                           | TermModification |  | RateModification |  | Combination |  | TotalModification |
| Commercial and industrial | $ | 238 |  |  | $ | 22 |  |  |  |  |  | $ | 238 |  |
| Real Estate Loans:        |   |  |   |  |   |  |   |
| Commercial and farmland   | 1,635 |  |  |  |  |  |  |  |  | 1,635 |  |
| Residential               | 199 |  |  |  |  |  | $ | 25 |  |  | 224 |  |
| Total                     | $ | 2,072 |  |  | $ | 22 |  |  | $ | 25 |  |  | $ | 2,097 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |
|                           | Three Months Ended March 31, 2013 |
|                           | Number ofLoans |  | RecordedBalance |
| Commercial and Industrial | 1 |  | $ | 5 |  |
| Real Estate Loans:        |   |  |   |
| Commercial and farmland   | 1 |  | 230 |  |
| Residential               | 1 |  | 47 |  |
| Total                     | 3 |  | $ | 282 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |
|                         | Three Months Ended March 31, 2012 |
|                         | Number ofLoans |  | RecordedBalance |
| Real Estate Loans:      |   |  |   |
| Commercial and farmland | 1 |  | $ | 717 |  |
| Residential             | 3 |  |  | 217 |  |
| Total                   | 4 |  |  | $ | 934 |  |

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Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |
|                                                                  | March 31, 2013 |  | December 31, 2012 |
| Commercial and industrial loans                                  | $ | 6,337 |  |  | $ | 8,542 |  |
| Agricultural production financing and other loans to farmers     | 245 |  |  | 1,127 |  |
| Real estate loans:                                               |   |  |   |
| Construction                                                     | 28 |  |  | 58 |  |
| Commercial and farmland                                          | 22,534 |  |  | 24,259 |  |
| Residential                                                      | 11,269 |  |  | 12,118 |  |
|        Home Equity            | 18,016 |  |  | 18,805 |  |
| Individuals' loans for household and other personal expenditures | 570 |  |  | 691 |  |
| Total                                                            | $ | 58,999 |  |  | $ | 65,600 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |
|                            | Three Months EndedMarch 31, 2013 |
| Beginning balance, Dec 31, 2012 | $ | 5,142 |  |
| Accretions                      | (771 | ) |
| Ending balance, March 31, 2013  | $ | 4,371 |  |

|                                      |
|--------------------------------------|
|                                      |  |  |  |
|                                 | Three Months Ended March 31, 2012 |
| Beginning balance, February 10, 2012 | $ | 9,774 |  |
| Accretions                           |  |  |
| Ending balance, March 31, 2012       | $ | 9,774 |  |

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|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Asset Derivatives |  | Liability Derivatives |
|                                               | March 31, 2013 |  | December 31, 2012 |  | March 31, 2013 |  | December 31, 2012 |
|                                               | BalanceSheetLocation |  | FairValue |  | BalanceSheetLocation |  | FairValue |  | BalanceSheetLocation |  | FairValue |  | BalanceSheetLocation |  | FairValue |
| Derivatives designated as hedging instruments:     |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |
| Interest rate contracts                            | Other Assets |  | $ | 233 |  |  | Other Assets |  | $ | 197 |  |  | Other Liabilities |  | $ | 2,888 |  |  | Other Liabilities |  | $ | 3,332 |  |
| Derivatives not designated as hedging instruments: |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |
| Interest rate contracts                            | Other Assets |  | $ | 5,155 |  |  | Other Assets |  | $ | 6,103 |  |  | Other Liabilities |  | $ | 5,419 |  |  | Other Liabilities |  | $ | 6,434 |  |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives Not Designated asHedging Instruments underFASB ASC 815-10 |  | Location of Gain (Loss)Recognized Income onDerivative |  | Amount of Gain (Loss)Recognized Income onDerivative |  | Amount of Gain (Loss)Recognized Income onDerivative |
|                                                                  |  |   |  | Three Months Ended March 31, 2013 |  | Three Months Ended March 31, 2012 |
| Interest rate contracts                                               |  | Other income |  | $ | 66 |  |  | $ | 3 |  |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |
| Derivatives in Cash Flow Hedging Relationships | Amount of Gain Recognized in Other Comprehensive Income on Derivative (Effective Portion) | Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion) |
| Three Months ended                             | Three Months ended |
| March 31, 2013                            | March 31, 2012 | March 31, 2013 | March 31, 2012 |
| Interest Rate Products                         | $ | 297 |  | $ | 467 |  | Interest Expense | $ | 188 |  |  |

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----

Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 |   |  | Fair Value Measurements Using: |
| March 31, 2013                                  | 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          | $ | 4,387 |  |  |   |  | $ | 4,387 |  |  |   |
| State and municipal                                  | 159,872 |  |  |   |  | 142,565 |  |  | $ | 17,307 |  |
| U.S. Government-sponsored mortgage-backed securities | 366,535 |  |  |   |  | 366,535 |  |  |   |
| Corporate obligations                                | 367 |  |  |   |  |   |  | 367 |  |
| Equity securities                                    | 1,706 |  |  |   |  | 1,702 |  |  | 4 |  |
| Interest rate swap asset                             | 5,155 |  |  |   |  | 5,155 |  |  |   |
| Interest rate cap                                    | 233 |  |  |   |  | 233 |  |  |   |
| Interest rate swap liability                         | 8,307 |  |  |   |  | 8,307 |  |  |   |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 |   |  | Fair Value Measurements Using: |
| December 31, 2012                               | 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          | $ | 4,640 |  |  |   |  | $ | 4,640 |  |  |   |
| State and municipal                                  | 158,194 |  |  |   |  | 140,094 |  |  | $ | 18,100 |  |
| U.S. Government-sponsored mortgage-backed securities | 348,579 |  |  |   |  | 348,579 |  |  |   |
| Corporate obligations                                | 224 |  |  |   |  |   |  | 224 |  |
| Equity securities                                    | 1,706 |  |  |   |  | 1,702 |  |  | 4 |  |
| Interest rate swap asset                             | 6,103 |  |  |   |  | 6,103 |  |  |  |  |
| Interest rate cap                                    | 197 |  |  |   |  | 197 |  |  |  |  |
| Interest rate swap liability                         | 9,766 |  |  |   |  | 9,766 |  |  |  |  |

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Table of Contents

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |
|                                            | Three Months Ended March 31, 2013 |
|                                            | Availablefor SaleSecurities |  | InterestRate SwapAsset |  | InterestRateCap |  | Interest Rate SwapLiability |
| Balance at beginning of the period              | $ | 18,328 |  |  |  |  |  |  |  |
| Total realized and unrealized gains and losses: |   |  |  |  |  |  |  |
| Included in net income (loss)                   |  |  |  |  |  |  |  |  |
| Included in other comprehensive income          | (176 | ) |  |  |  |  |  |  |
| Purchases, issuances and settlements            |  |  |  |  |  |  |  |  |
| Transfers in/(out) of Level 3                   |  |  |  |  |  |  |  |
| Principal payments/additions                    | (474 | ) |  |  |  |  |  |  |
| Ending balance at March 31, 2013                | $ | 17,678 |  |  |  |  |  |  |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | Three Months Ended March 31, 2012 |
|                                            | Availablefor SaleSecurities |  | InterestRate SwapAsset |  | InterestRateCap |  | InterestRate SwapLiability |
| Balance at beginning of the period              | $ | 20,838 |  |  | $ | 5,241 |  |  | $ | 424 |  |  | $ | (7,797 | ) |
| Total realized and unrealized gains and losses: |   |  |   |  |   |  |   |
| Included in net income (loss)                   |  |  | (860 | ) |  |  |  | 863 |  |
| Included in other comprehensive income          | (523 | ) |  | 481 |  |  | (15 | ) |  |  |  |
| Purchases, issuances and settlements            |  |  |  |  |  |  |  |  |  |  |  |
| Transfers in/(out) of Level 3                   |  |  | (4,862 | ) |  | (409 | ) |  | 6,934 |  |
| Principal payments                              | (437 | ) |  |   |  |   |  |  |  |
| Ending balance at  March 31, 2012               | $ | 19,878 |  |  |  |  |  |  |  |

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Table of Contents

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three Months Ended March 31, 2012 |   |
|                         | Quoted Prices inActive Marketsfor IdenticalAssets (Level 1) |  | SignificantOtherObservableInputs(Level 2) |  | Significant UnobservableInputs (Level 3) |  | Reason for Transfer |
| Transfers to/(from) Level:   |   |  |   |  |   |  |   |
| Interest rate swap asset     |   |  | $ | 4,862 |  |  | $ | (4,862 | ) |  | The interest rate swap and cap instruments were transferred from Level 3 to Level 2 as of March 31, 2012 due to the availability of additional valuation information. These instruments are valued using widely accepted valuation techniques including discounted cash flow analysis using observable inputs such as contractual terms and LIBOR-based rate curves. |
| Interest rate cap            |   |  | 409 |  |  | (409 | ) |  |
| Interest rate swap liability |   |  | 6,934 |  |  | (6,934 | ) |  |
|                              |   |  | $ | 12,205 |  |  | $ | (12,205 | ) |  |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |  |   |  | Fair Value Measurements Using |
| March 31, 2013                   |  | Fair Value |  | Quoted Prices inActive Markets forIdentical Assets(Level 1) |  | Significant OtherObservableInputs(Level 2) |  | Significant UnobservableInputs(Level 3) |
| Impaired loans (collateral dependent) |  | $ | 11,096 |  |  |   |  |   |  | $ | 11,096 |  |
| Other real estate owned               |  | $ | 4,411 |  |  |   |  |   |  | $ | 4,411 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |  |   |  | Fair Value Measurements Using |
| December 31, 2012                |  | Fair Value |  | Quoted Prices inActive Markets forIdentical Assets(Level 1) |  | Significant OtherObservable Inputs(Level 2) |  | Significant UnobservableInputs(Level 3) |
| Impaired loans (collateral dependent) |  | $ | 17,703 |  |  |   |  |   |  | $ | 17,703 |  |
| Other real estate owned               |  | $ | 7,684 |  |  |   |  |   |  | $ | 7,684 |  |

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |
|                                    | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range |
| State and municipal securities          | $ | 17,307 |  |  | Discounted cash flow |  | Maturity/Call date |  | 1 month to 11 yrs |
|                                    |   |  |   |  | Blend of US Muni BQ curve |  | A- to BBB- |
|                                    |   |  |   |  | Discount rate |  | 1% - 4% |
| Corporate obligations/Equity securities | $ | 371 |  |  | Discounted cash flow |  | Risk free rate |  | 3 month LIBOR |
|                                    |   |  |   |  | plus Premium for illiquidity |  | plus 200bps |
| Impaired loans (collateral dependent)   | $ | 11,096 |  |  | Collateral based |  | Discount to reflect current market |  | 0% - 50% |
|                                    |   |  | measurements |  | conditions and ultimate collectability |  |   |
| Other real estate owned                 | $ | 4,411 |  |  | Appraisals |  | Discount to reflect current market |  | 0% - 20% |
|                                    |   |  |   |  | conditions |  |   |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       |  |  | March 31, 2013 |  |  |
|                                                       |  |  | (unaudited) |  |  |
|                                                  | CarryingAmount |  | Quoted Prices in Active Marketsfor IdenticalAssets |  | SignificantOtherObservableInputs |  | Significant UnobservableInputs |
|                                                  | (Level 1) |  | (Level 2) |  | (Level 3) |
| Assets:                                               |   |  |   |  |   |  |   |
| Cash and due from banks                               | $ | 51,592 |  |  | $ | 51,592 |  |  |   |  |   |
| Interest-bearing time deposits                        | 60,407 |  |  | 60,407 |  |  |   |  |   |
| Investment securities available for sale              | 532,867 |  |  |   |  | $ | 515,189 |  |  | $ | 17,678 |  |
| Investment securities held to maturity                | 336,696 |  |  |   |  | 344,948 |  |  | 6,491 |  |
| Mortgage loans held for sale                          | 26,555 |  |  |   |  | 26,555 |  |  |   |
| Loans                                                 | 2,811,005 |  |  |   |  |   |  | 2,824,164 |  |
| Federal Reserve Bank and Federal Home Loan Bank stock | 32,777 |  |  |   |  | 32,777 |  |  |   |
| Interest rate swap asset                              | 5,388 |  |  |   |  | 5,388 |  |  |   |
| Interest receivable                                   | 15,346 |  |  |   |  | 15,346 |  |  |   |
| Liabilities:                                          |   |  |   |  |   |  |   |
| Deposits                                              | $ | 3,310,808 |  |  | $ | 2,481,769 |  |  | $ | 825,841 |  |  |   |
| Borrowings:                                           |   |  |   |  |   |  |   |
| Federal funds purchased                               |  |  |  |   |  |  |  |  |   |
| Securities sold under repurchase agreements           | 161,813 |  |  |   |  | 162,234 |  |  |   |
| Federal Home Loan Bank advances                       | 93,169 |  |  |   |  | 96,211 |  |  |   |
| Subordinated debentures and term loans                | 111,778 |  |  |   |  | 62,596 |  |  |   |
| Interest rate swap liability                          | 8,307 |  |  |   |  | 8,307 |  |  |   |
| Interest payable                                      | 1,348 |  |  |   |  | 1,348 |  |  |   |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       |  |  | December 31, 2012 |  |  |
|                                                  | CarryingAmount |  | Quoted Prices in Active Marketsfor IdenticalAssets |  | SignificantOtherObservableInputs |  | Significant UnobservableInputs |
|                                                  | (Level 1) |  | (Level 2) |  | (Level 3) |
| Assets:                                               |   |  |   |  |   |  |   |
| Cash and due from banks                               | $ | 101,460 |  |  | $ | 101,460 |  |  |   |  |   |
| Interest-bearing time deposits                        | 38,443 |  |  | 38,443 |  |  |   |  |   |
| Investment securities available for sale              | 513,343 |  |  |   |  | $ | 495,015 |  |  | $ | 18,328 |  |
| Investment securities held to maturity                | 361,020 |  |  |   |  | 366,590 |  |  | 11,584 |  |
| Mortgage loans held for sale                          | 22,300 |  |  |   |  | 22,300 |  |  |   |
| Loans                                                 | 2,832,843 |  |  |   |  |   |  | 2,852,614 |  |
| Federal Reserve Bank and Federal Home Loan Bank stock | 32,785 |  |  |   |  | 32,785 |  |  |   |
| Interest rate swap asset                              | 6,300 |  |  |   |  | 6,300 |  |  |  |  |
| Interest receivable                                   | 16,367 |  |  |   |  | 16,367 |  |  |   |
| Liabilities:                                          |   |  |   |  |   |  |   |
| Deposits                                              | $ | 3,346,383 |  |  | $ | 2,478,706 |  |  | $ | 865,793 |  |  |   |
| Borrowings:                                           |   |  |   |  |   |  |   |
| Federal funds purchased                               | 18,862 |  |  |  |  | 18,862 |  |  |  |
| Securities sold under repurchase agreements           | 141,828 |  |  |   |  | 142,318 |  |  |   |
| Federal Home Loan Bank advances                       | 94,238 |  |  |   |  | 97,357 |  |  |   |
| Subordinated debentures and term loans                | 112,161 |  |  |   |  | 62,133 |  |  |   |  |
| Interest rate swap liability                          | 9,766 |  |  |   |  | 9,766 |  |  |  |
| Interest payable                                      | 1,841 |  |  |   |  | 1,841 |  |  |   |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | Accumulated Other Comprehensive Income |
|                                                             | Unrealized Gains (Losses) on Securities Available for Sale |   | Unrealized Gains (Losses) on Securities Available for Sale for which a Portion of Other-Than-Temporary Impairment has been Recognized in Income |   | Unrealized Gains (Losses) on Cash Flow Hedges |   | Unrealized Gains (Losses) on Defined Benefit Plans |   | Total |
| Balance at December 31, 2012                                     | $ | 17,904 |  |   | $ | (3,272 | ) |   | $ | (2,652 | ) |   | $ | (17,479 | ) |   | $ | (5,499 | ) |
| Other comprehensive income before reclassifications              | (2,115 | ) |   | 72 |  |   | 193 |  |   |  |  |   | (1,850 | ) |
| Amounts reclassified from accumulated other comprehensive income | (161 | ) |   |  |  |   | 122 |  |   | 640 |  |   | 601 |  |
| Period change                                                    | (2,276 | ) |   | 72 |  |   | 315 |  |   | 640 |  |   | (1,249 | ) |
| Balance at March 31, 2013                                        | $ | 15,628 |  |   | $ | (3,200 | ) |   | $ | (2,337 | ) |   | $ | (16,839 | ) |   | $ | (6,748 | ) |
|                                                             |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2011                                     | $ | 18,244 |  |   | $ | (3,168 | ) |   | $ | (1,841 | ) |   | $ | (16,837 | ) |   | $ | (3,602 | ) |
| Other comprehensive income before reclassifications              | (20 | ) |   | (14 | ) |   | 304 |  |   |  |  |   | 270 |  |
| Amounts reclassified from accumulated other comprehensive income | (513 | ) |   |  |  |   |  |  |   | 520 |  |   | 7 |  |
| Period change                                                    | (533 | ) |   | (14 | ) |   | 304 |  |   | 520 |  |   | 277 |  |
| Balance at March 31, 2012                                        | $ | 17,711 |  |   | $ | (3,182 | ) |   | $ | (1,537 | ) |   | $ | (16,317 | ) |   | $ | (3,325 | ) |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |
|                                                            | Amount Reclassified from Accumulated Other Comprehensive Income For the Three Months Ended March 31, |   |   |
| Details about Accumulated Other Comprehensive Income Components | 2013 |   | 2012 |   | Affected Line Item in the Statements of Income |
| Unrealized gains (losses) on available for sale securities (1)  |   |   |   |   |   |
| Realized securities gains reclassified into income              | $ | 248 |  |   | $ | 789 |  |   | Other income - net realized gains on sales of available for sale securities |
| Related income tax expense                                      | (87 | ) |   | (276 | ) |   | Income tax expense |
|                                                            | $ | 161 |  |   | $ | 513 |  |   |   |
|                                                            |   |   |   |   |   |
| Unrealized gains (losses) on cash flow hedges (2)               |   |   |   |   |   |
| Interest rate contracts                                         | $ | (188 | ) |   |  |   | Interest expense - subordinated debentures and term loans |
| Related income tax benefit                                      | 66 |  |   |  |   | Income tax expense |
|                                                            | $ | (122 | ) |   |  |   |   |
|                                                            |   |   |   |   |   |
| Unrealized gains (losses) on defined benefit plans              |   |   |   |   |   |
| Amortization of net loss and prior service costs                | $ | (985 | ) |   | $ | (802 | ) |   | Other expenses - salaries and employee benefits |
| Related income tax benefit                                      | 345 |  |   | 282 |  |   | Income tax expense |
|                                                            | $ | (640 | ) |   | $ | (520 | ) |   |   |
|                                                            |   |   |   |   |   |
| Total reclassifications for the period, net of tax              | $ | (601 | ) |   | $ | (7 | ) |   |   |

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Table of Contents

|                                                |
|------------------------------------------------|
|                                                |  |  |
| Risk-free interest rate                        | 1.25 | % |
| Expected price volatility                      | 45.68 | % |
| Dividend yield                                 | 2.96 | % |
| Forfeiture rate                                | 4.73 | % |
| Weighted-average expected life, until exercise | 7.3 years |  |

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Table of Contents

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |
|                                                             | Three Months EndedMarch 31, |
|                                                        | 2013 |  | 2012 |
| Stock and ESPP Options                                      |   |  |   |
| Pre-tax compensation expense                                | $ | 38 |  |  | $ | 46 |  |
| Income tax benefit                                          | (2 | ) |  |  |  |
| Stock and ESPP option expense, net of income taxes          | $ | 36 |  |  | $ | 46 |  |
| Restricted Stock Awards                                     |   |  |   |
| Pre-tax compensation expense                                | $ | 336 |  |  | $ | 280 |  |
| Income tax benefit                                          | (117 | ) |  | (106 | ) |
| Restricted stock awards expense, net of income taxes        | $ | 219 |  |  | $ | 174 |  |
| Total Share-Based Compensation:                             |   |  |   |
| Pre-tax compensation expense                                | $ | 374 |  |  | $ | 326 |  |
| Income tax benefit                                          | (119 | ) |  | (106 | ) |
| Total share-based compensation expense, net of income taxes | $ | 255 |  |  | $ | 220 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                          | Number ofShares |  | Weighted-Average Exercise Price |  | Weighted Average RemainingContractual Term(in Years) |  | AggregateIntrinsicValue |
| Outstanding at January 1, 2013                | 906,636 |  |  | $ | 21.58 |  |  |   |  |   |
| Granted                                       | 9,000 |  |  | $ | 15.32 |  |  |   |  |   |
| Exercised                                     | (2,250 | ) |  | $ | 6.99 |  |  |   |  |   |
| Canceled                                      | (8,471 | ) |  | $ | 24.69 |  |  |   |  |   |
| Outstanding March 31, 2013                    | 904,915 |  |  | $ | 21.60 |  |  | 3.87 |  | 1,140,887 |  |
| Vested and Expected to Vest at March 31, 2013 | 904,915 |  |  | $ | 21.60 |  |  | 3.87 |  | 1,140,887 |  |
| Exercisable at March 31, 2013                 | 867,615 |  |  | $ | 22.00 |  |  | 3.64 |  | 1,023,790 |  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |
|                             | Number of Shares |  | Weighted-AverageGrant Date Fair Value |
| Unvested RSAs at January 1, 2013 | 401,375 |  |  | $ | 9.29 |  |
| Granted                          | 109,118 |  |  | $ | 14.74 |  |
| Vested                           | (100,123 | ) |  | $ | 5.95 |  |
| Forfeited                        | (200 | ) |  | $ | 11.38 |  |
| Unvested RSAs at March 31, 2013  | 410,170 |  |  | $ | 11.55 |  |

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Table of Contents

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |
|                                                            | Three Months Ended March 31, |
|                                                       | 2013 |  | 2012 |
| Income Tax Expense :                                       |   |  |   |
| Currently Payable:                                         |   |  |   |
| Federal                                                    | $ | (906 | ) |  | $ | 818 |  |
| State                                                      |  |  |  |  |  |
| Deferred:                                                  |   |  |   |
| Federal                                                    | 5,574 |  |  | 4,682 |  |
| State                                                      |  |  |  |  |  |
| Total Income Tax Expense                                   | $ | 4,668 |  |  | $ | 5,500 |  |
| Reconciliation of Federal Statutory to Actual Tax Expense: |   |  |   |
| Federal statutory income tax at 35%                        | $ | 5,787 |  |  | $ | 6,955 |  |
| Tax-exempt interest income                                 | (897 | ) |  | (931 | ) |
| Stock compensation                                         | 11 |  |  | 16 |  |
| Earnings on life insurance                                 | (245 | ) |  | (483 | ) |
| Tax credits                                                | (18 | ) |  | (18 | ) |
| Other                                                      | 30 |  |  | (39 | ) |
| Actual Tax Expense                                         | $ | 4,668 |  |  | $ | 5,500 |  |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   | Three Months Ended March 31, |
|                                                   | 2013 |  | 2012 |
|                                                   | Net Income |  | Weighted-Average Shares |  | Per ShareAmount |  | Net Income |  | Weighted-Average Shares |  | Per ShareAmount |
| Basic net income per share:                            | $ | 11,865 |  |  |   |  |   |  | $ | 14,371 |  |  |   |  |   |
| Less: Preferred Stock dividends and discount accretion | (857 | ) |  |   |  |   |  | (1,135 | ) |  |   |  |   |
| Net income available to common stockholders            | 11,008 |  |  | 28,716,987 |  |  | $ | 0.38 |  |  | 13,236 |  |  | 28,582,616 |  |  | $ | 0.46 |  |
| Effect of dilutive stock options and warrants          |  |  |  | 254,251 |  |  |   |  |  |  |  | 172,097 |  |  |   |
| Diluted net income per share:                          |   |  |   |  |   |  |   |  |   |  |   |
| Net income available to common stockholders            | $ | 11,008 |  |  | 28,971,238 |  |  | $ | 0.38 |  |  | $ | 13,236 |  |  | 28,754,713 |  |  | $ | 0.46 |  |

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Table of Contents

|         |                                                       |
|---------|-------------------------------------------------------|
| • | 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 banks; |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | 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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|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |
|                                                                    | Three Months Ended March 31, |
| (Dollars in Thousands)                                             | 2013 |  | 2012 |
| Annualized net interest income                                     | $ | 157,830 |  |  | $ | 144,465 |  |
| Annualized FTE adjustment                                          | $ | 5,537 |  |  | $ | 5,771 |  |
| Annualized net interest income on a fully taxable equivalent basis | $ | 163,367 |  |  | $ | 150,236 |  |
| Average earning assets                                             | $ | 3,843,741 |  |  | $ | 3,789,437 |  |
| Interest income (FTE) as a percent of average earning assets       | 4.70 | % |  | 4.74 | % |
| Interest expense as a percent of average earning assets            | 0.45 | % |  | 0.78 | % |
| Net interest income (FTE) as a percent of average earning assets   | 4.25 | % |  | 3.96 | % |

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Table of Contents

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | March 31, 2013 |  | December 31, 2012 |
| (Dollars in Thousands)                             | Amount |  | Ratio |  | Amount |  | Ratio |
| Consolidated                                       |   |  |   |  |   |  |   |
| Total risk-based capital (to risk-weighted assets) | $ | 511,597 |  |  | 15.91 | % |  | $ | 526,792 |  |  | 16.34 | % |
| Tier 1 capital (to risk-weighted assets)           | 451,059 |  |  | 14.03 | % |  | 456,132 |  |  | 14.15 | % |
| Tier 1 capital (to average assets)                 | 451,059 |  |  | 11.00 | % |  | 456,132 |  |  | 11.03 | % |
| First Merchants Bank                               |   |  |   |  |   |  |   |
| Total risk-based capital (to risk-weighted assets) | $ | 521,316 |  |  | 16.22 | % |  | $ | 515,337 |  |  | 16.01 | % |
| Tier 1 capital (to risk-weighted assets)           | 480,825 |  |  | 14.96 | % |  | 474,782 |  |  | 14.75 | % |
| Tier 1 capital (to average assets)                 | 480,825 |  |  | 11.75 | % |  | 474,782 |  |  | 11.50 | % |

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |
|                                                                                             | Three Months Ended March 31, |
| (Dollars in Thousands, Except Per Share Amounts)                                            | 2013 |  | 2012 |
| Average goodwill                                                                            | $ | 141,374 |  |  | $ | 141,357 |  |
| Average core deposit intangible (CDI)                                                       | 7,966 |  |  | 8,871 |  |
| Average deferred tax on CDI                                                                 | (2,242 | ) |  | (2,200 | ) |
| Intangible adjustment                                                                       | $ | 147,098 |  |  | $ | 148,028 |  |
| Average stockholders' equity (GAAP capital)                                                 | $ | 533,797 |  |  | $ | 517,774 |  |
| Average cumulative preferred stock                                                          | (125 | ) |  | (125 | ) |
| Average non-cumulative preferred stock issued under the Small Business Lending Fund Program | (68,591 | ) |  | (90,782 | ) |
| Intangible adjustment                                                                       | (147,098 | ) |  | (148,028 | ) |
| Average tangible capital                                                                    | $ | 317,983 |  |  | $ | 278,839 |  |
| Average assets                                                                              | $ | 4,248,955 |  |  | $ | 4,202,955 |  |
| Intangible adjustment                                                                       | (147,098 | ) |  | (148,028 | ) |
| Average tangible assets                                                                     | $ | 4,101,857 |  |  | $ | 4,054,927 |  |
| Net income available to common stockholders                                                 | $ | 11,008 |  |  | $ | 13,236 |  |
| CDI amortization, net of tax                                                                | 207 |  |  | 266 |  |
| Tangible net income available to common stockholders                                        | $ | 11,215 |  |  | $ | 13,502 |  |
| Per Share Data:                                                                             |   |  |   |
| Diluted net income available to common stockholders                                         | $ | 0.38 |  |  | $ | 0.46 |  |
| Diluted tangible net income available to common stockholders                                | $ | 0.39 |  |  | $ | 0.47 |  |
| Ratios:                                                                                     |   |  |   |
| Return on average GAAP capital (ROE)                                                        | 8.25 | % |  | 10.23 | % |
| Return on average tangible capital                                                          | 14.11 | % |  | 19.37 | % |
| Return on average assets (ROA)                                                              | 1.04 | % |  | 1.26 | % |
| Return on average tangible assets                                                           | 1.09 | % |  | 1.33 | % |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                         |  | March 31, 2013 |  | December 31, 2012 |
| Non-Performing Assets:                         |  |   |  |  |   |  |
| Non-accrual loans                              |  | $ | 46,761 |  |  | $ | 53,399 |  |
| Renegotiated loans                             |  | 5,445 |  |  | 12,681 |  |
| Non-performing loans (NPL)                     |  | 52,206 |  |  | 66,080 |  |
| Other real estate owned                        |  | 13,130 |  |  | 13,263 |  |
| Non-performing assets (NPA)                    |  | 65,336 |  |  | 79,343 |  |
| 90+ days delinquent and still accruing         |  | 959 |  |  | 2,037 |  |
| Non-performing assets plus 90+ days delinquent |  | 66,295 |  |  | 81,380 |  |
| Impaired Loans                                 |  | $ | 68,077 |  |  | $ | 79,179 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                                           | March 31, 2013 |  | December 31, 2012 |
| Non-Performing Assets and 90+ Days Delinquent:                   |   |  |   |
| Commercial and industrial loans                                  | $ | 9,713 |  |  | $ | 13,690 |  |
| Agricultural production financing and other loans to farmers     | 86 |  |  |   |
| Real estate loans:                                               |   |  |   |
| Construction                                                     | 10,738 |  |  | 12,378 |  |
| Commercial and farmland                                          | 29,752 |  |  | 34,999 |  |
| Residential                                                      | 13,446 |  |  | 16,620 |  |
| Home Equity                                                      | 2,452 |  |  | 3,198 |  |
| Individuals' loans for household and other personal expenditures | 91 |  |  | 190 |  |
| Lease financing receivables, net of unearned income              | 17 |  |  | 301 |  |
| Other loans                                                      |  |  |  | 4 |  |
| Non-performing assets plus 90+ days delinquent                   | $ | 66,295 |  |  | $ | 81,380 |  |

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|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |
|                                                                  | Three Months Ended March 31, |
| (Dollars in Thousands)                                           | 2013 |  | 2012 |
| Net Charge Offs (Recoveries):                                    |   |  |   |
| Commercial and industrial loans                                  | $ | 930 |  |  | $ | 2,206 |  |
| Agricultural production financing and other loans to farmers     | (18 | ) |  | (14 | ) |
| Real estate loans:                                               |   |  |   |
| Construction                                                     | (258 | ) |  | 143 |  |
| Commercial and farmland                                          | 1,228 |  |  | 1,647 |  |
| Residential                                                      | 746 |  |  | 768 |  |
| Home Equity                                                      | 338 |  |  |  |  |
| Individuals' loans for household and other personal expenditures | (23 | ) |  | 113 |  |
| Lease financing receivables, net of unearned income              |   |  | (1 | ) |
| Other Loans                                                      | (12 | ) |  | 542 |  |
| Total Net Charge Offs                                            | $ | 2,931 |  |  | $ | 5,404 |  |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |
| (Dollars in Thousands)                   | March 31, 2013 |
| Amounts of commitments:                  |   |
| Loan commitments to extend credit        | $ | 898,083 |  |
| Standby and commercial letters of credit | 18,339 |  |
|                                     | $ | 916,422 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                      | Remaining2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 andafter |  | Total |
| Operating leases                            | $ | 1,726 |  |  | $ | 2,257 |  |  | $ | 2,086 |  |  | $ | 1,666 |  |  | $ | 1,023 |  |  | $ | 324 |  |  | $ | 1,041 |  |  | $ | 10,123 |  |
| Securities sold under repurchase agreements | 151,813 |  |  | 10,000 |  |  |  |  |  |   |  |   |  |   |  |   |  | 161,813 |  |
| Federal Home Loan Bank advances             | 559 |  |  | 26,506 |  |  | 30,979 |  |  | 28,933 |  |  | 2,729 |  |  | 3,360 |  |  | 103 |  |  | 93,169 |  |
| Subordinated debentures and term loans      | 76 |  |  |   |  | 55,000 |  |  |  |  |  |   |  |   |  | 56,702 |  |  | 111,778 |  |
| Total                                       | $ | 154,174 |  |  | $ | 38,763 |  |  | $ | 88,065 |  |  | $ | 30,599 |  |  | $ | 3,752 |  |  | $ | 3,684 |  |  | $ | 57,846 |  |  | $ | 376,883 |  |

----

Table of Contents

|                |
|----------------|
|                |  |  |  |  |  |
|           |  | March 31, 2013 |
|           |  | RISING |  | FALLING |
| Driver Rates   |  | (200 Basis Points) |  | (100 Basis Points) |
| Prime          |  | 200 |  | — |  |
| Federal funds  |  | 200 |  | — |  |
| One-year CMT   |  | 200 |  | (6 | ) |
| Three-year CMT |  | 200 |  | (3 | ) |
| Five-year CMT  |  | 200 |  | (15 | ) |
| CD's           |  | 200 |  | (24 | ) |
| FHLB advances  |  | 200 |  | (8 | ) |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |  |  |  | March 31, 2013 |
|                        |  |   |  | RISING |  | FALLING |
| (Dollars in Thousands)      |  | Base |  | (200 Basis Points) |  | (100 Basis Points) |
| Net interest income         |  | $ | 144,546 |  |  | $ | 152,514 |  |  | $ | 142,738 |  |
| Variance from base          |  |   |  | $ | 7,968 |  |  | $ | (1,808 | ) |
| Percent of change from base |  |   |  | 5.51 | % |  | (1.25 | )% |

|                |
|----------------|
|                |  |  |  |  |  |
|           |  | December 31, 2012 |
|           |  | RISING |  | FALLING |
| Driver Rates   |  | (200 Basis Points) |  | (100 Basis Points) |
| Prime          |  | 200 |  | — |  |
| Federal funds  |  | 200 |  | — |  |
| One-year CMT   |  | 200 |  | (8 | ) |
| Three-year CMT |  | 200 |  | (3 | ) |
| Five-year CMT  |  | 200 |  | (10 | ) |
| CD's           |  | 200 |  | (25 | ) |
| FHLB advances  |  | 200 |  | (5 | ) |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |  |  |  | December 31, 2012 |
|                        |  |   |  | RISING |  | FALLING |
| (Dollars in Thousands)      |  | Base |  | (200 Basis Points) |  | (100 Basis Points) |
| Net interest income         |  | $ | 145,846 |  |  | $ | 153,621 |  |  | $ | 144,122 |  |
| Variance from base          |  |   |  | $ | 7,775 |  |  | $ | (1,724 | ) |
| Percent of change from base |  |   |  | 5.33 | % |  | (1.18 | )% |

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|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |
| (Dollars in Thousands)                           |  | March 31, 2013 |  | December 31, 2012 |
| Interest-bearing time deposits                   |  | $ | 60,407 |  |  | $ | 38,443 |  |
| Investment securities available for sale         |  | 532,867 |  |  | 513,343 |  |
| Investment securities held to maturity           |  | 336,696 |  |  | 361,020 |  |
| Mortgage loans held for sale                     |  | 26,555 |  |  | 22,300 |  |
| Loans                                            |  | 2,879,542 |  |  | 2,902,209 |  |
| Federal Reserve and Federal Home Loan Bank stock |  | 32,777 |  |  | 32,785 |  |
| Total                                            |  | $ | 3,868,844 |  |  | $ | 3,870,100 |  |

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Table of Contents

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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 |
| January, 2013  |  |  |  |  |  |  | — |  |  | — |  |
| February, 2013 |  | 31,805 |  |  | $14.81 |  | — |  |  | — |  |
| March, 2013    |  | 182 |  |  | $14.83 |  | — |  |  | — |  |

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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) |
| 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) |
| 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) |
| 4.2         | Indenture dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) |
| 4.3         | Guarantee Agreement dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) |
| 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) |
| 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) |
| 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: May 10, 2013 | by /s/ Michael C. Rechin |
|               | Michael C. Rechin |
|               | President and Chief Executive Officer |
|               | (Principal Executive Officer) |
|               |   |
| Date: May 10, 2013 | by /s/ Mark K. Hardwick |
|               | Mark K. Hardwick |
|               | Executive Vice President and |
|               | Chief Financial 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) |
| 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) |
| 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) |
| 4.2         | Indenture dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) |
| 4.3         | Guarantee Agreement dated as of July 2, 2007 (Incorporated by reference to registrant's Form 8-K filed on July 3, 2007) |
| 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) |
| 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) |
| 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. |