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

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

|                                          |
|------------------------------------------|
|                                          |  |  |
| Pennsylvania                             |   | 25-1428528 |
| (State or other jurisdiction of          |   | (I.R.S. Employer |
| incorporation or organization)           |   | Identification No.) |
|                                     |   |   |
| 601 Philadelphia Street, Indiana, PA     |   | 15701 |
| (Address of principal executive offices) |   | (Zip Code) |

----

Table of Contents

|               |
|---------------|
|               |  |  |
|          |   | PAGE |
|          |   |   |
| PART I.  | Financial Information |   |
|          |   |   |
| ITEM 1.  | Financial Statements and Supplementary Data |   |
|          |   |   |
|          | Included in Part I of this report: |   |
|          |   |   |
|          | First Commonwealth Financial Corporation and Subsidiaries |   |
|          |   |   |
|          | Condensed Consolidated Statements of Financial Condition (Unaudited) | 3 |
|          | Condensed Consolidated Statements of Income (Unaudited) | 4 |
|          | Condensed Consolidated Statements of Comprehensive Income (Unaudited) | 5 |
|          | Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) | 6 |
|          | Condensed Consolidated Statements of Cash Flows (Unaudited) | 7 |
|          | Notes to the Unaudited Condensed Consolidated Financial Statements | 8 |
|          |   |   |
| ITEM 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 42 |
|          |   |   |
| ITEM 3.  | Quantitative and Qualitative Disclosures About Market Risk | 64 |
|          |   |   |
| ITEM 4.  | Controls and Procedures | 64 |
|          |   |   |
| PART II. | Other Information |   |
|          |   |   |
| ITEM 1.  | Legal Proceedings | 65 |
|          |   |   |
| ITEM 1A. | Risk Factors | 65 |
|          |   |   |
| ITEM 2.  | Unregistered Sales of Equity Securities and Use of Proceeds | 65 |
|          |   |   |
| ITEM 3.  | Defaults Upon Senior Securities | 65 |
|          |   |   |
| ITEM 4.  | Mine Safety Disclosures | 65 |
|          |   |   |
| ITEM 5.  | Other Information | 65 |
|          |   |   |
| ITEM 6.  | Exhibits | 66 |
|          |   |   |
|          | Signatures | 67 |

----

Table of Contents

|                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                        |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                   | September 30, 2016 |   | December 31, 2015 |
|                                                                                                                                                                                                                                                   | (dollars in thousands,except share data) |
| Assets                                                                                                                                                                                                                                                 |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                | $ | 76,456 |  |   | $ | 66,644 |  |
| Interest-bearing bank deposits                                                                                                                                                                                                                         | 5,097 |  |   | 2,808 |  |
| Securities available for sale, at fair value                                                                                                                                                                                                           | 813,659 |  |   | 886,560 |  |
| Securities held to maturity, at amortized cost (Fair value of $396,994 and $382,341 at September 30, 2016 and December 31, 2015, respectively)                                                                                                         | 389,513 |  |   | 384,324 |  |
| Other investments                                                                                                                                                                                                                                      | 54,066 |  |   | 62,952 |  |
| Loans held for sale                                                                                                                                                                                                                                    | 7,855 |  |   | 5,763 |  |
| Loans:                                                                                                                                                                                                                                                 |   |   |   |
| Portfolio loans                                                                                                                                                                                                                                        | 4,860,652 |  |   | 4,683,750 |  |
| Allowance for credit losses                                                                                                                                                                                                                            | (54,734 | ) |   | (50,812 | ) |
| Net loans                                                                                                                                                                                                                                              | 4,805,918 |  |   | 4,632,938 |  |
| Premises and equipment, net                                                                                                                                                                                                                            | 63,356 |  |   | 63,454 |  |
| Other real estate owned                                                                                                                                                                                                                                | 7,686 |  |   | 9,398 |  |
| Goodwill                                                                                                                                                                                                                                               | 164,437 |  |   | 164,500 |  |
| Amortizing intangibles, net                                                                                                                                                                                                                            | 912 |  |   | 1,231 |  |
| Bank owned life insurance                                                                                                                                                                                                                              | 186,034 |  |   | 182,601 |  |
| Other assets                                                                                                                                                                                                                                           | 91,494 |  |   | 103,717 |  |
| Total assets                                                                                                                                                                                                                                           | $ | 6,666,483 |  |   | $ | 6,566,890 |  |
| Liabilities                                                                                                                                                                                                                                            |   |   |   |
| Deposits (all domestic):                                                                                                                                                                                                                               |   |   |   |
| Noninterest-bearing                                                                                                                                                                                                                                    | $ | 1,241,627 |  |   | $ | 1,116,689 |  |
| Interest-bearing                                                                                                                                                                                                                                       | 3,217,353 |  |   | 3,079,205 |  |
| Total deposits                                                                                                                                                                                                                                         | 4,458,980 |  |   | 4,195,894 |  |
| Short-term borrowings                                                                                                                                                                                                                                  | 1,330,327 |  |   | 1,510,825 |  |
| Subordinated debentures                                                                                                                                                                                                                                | 72,167 |  |   | 72,167 |  |
| Other long-term debt                                                                                                                                                                                                                                   | 8,892 |  |   | 9,314 |  |
| Total long-term debt                                                                                                                                                                                                                                   | 81,059 |  |   | 81,481 |  |
| Other liabilities                                                                                                                                                                                                                                      | 44,330 |  |   | 59,144 |  |
| Total liabilities                                                                                                                                                                                                                                      | 5,914,696 |  |   | 5,847,344 |  |
| Shareholders’ Equity                                                                                                                                                                                                                             |   |   |   |
| Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued                                                                                                                                                                      | — |  |   | — |  |
| Common stock, $1 par value per share, 200,000,000 shares authorized; 105,563,455 shares issued at September 30, 2016 and December 31, 2015, and 88,992,077 and 88,961,268 shares outstanding at September 30, 2016 and December 31, 2015, respectively | 105,563 |  |   | 105,563 |  |
| Additional paid-in capital                                                                                                                                                                                                                             | 366,291 |  |   | 365,981 |  |
| Retained earnings                                                                                                                                                                                                                                      | 401,079 |  |   | 378,081 |  |
| Accumulated other comprehensive income (loss), net                                                                                                                                                                                                     | 6,762 |  |   | (2,386 | ) |
| Treasury stock (16,571,378 and 16,602,187 shares at September 30, 2016 and December 31, 2015, respectively)                                                                                                                                            | (127,908 | ) |   | (127,693 | ) |
| Total shareholders’ equity                                                                                                                                                                                                                       | 751,787 |  |   | 719,546 |  |
| Total liabilities and shareholders’ equity                                                                                                                                                                                                       | $ | 6,666,483 |  |   | $ | 6,566,890 |  |

----

Table of Contents

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | For the Three Months Ended |   | For the Nine Months Ended |
|                                                  | September 30, |   | September 30, |
|                                                  | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                                  | (dollars in thousands, except share data) |
| Interest Income                                       |   |   |   |   |   |   |   |
| Interest and fees on loans                            | $ | 46,657 |  |   | $ | 43,083 |  |   | $ | 137,389 |  |   | $ | 128,334 |  |
| Interest and dividends on investments:                |   |   |   |   |   |   |   |
| Taxable interest                                      | 6,763 |  |   | 6,470 |  |   | 20,937 |  |   | 20,022 |  |
| Interest exempt from federal income taxes             | 380 |  |   | 261 |  |   | 1,112 |  |   | 646 |  |
| Dividends                                             | 671 |  |   | 685 |  |   | 2,225 |  |   | 2,727 |  |
| Interest on bank deposits                             | 8 |  |   | 2 |  |   | 19 |  |   | 7 |  |
| Total interest income                                 | 54,479 |  |   | 50,501 |  |   | 161,682 |  |   | 151,736 |  |
| Interest Expense                                      |   |   |   |   |   |   |   |
| Interest on deposits                                  | 2,125 |  |   | 1,757 |  |   | 5,642 |  |   | 5,787 |  |
| Interest on short-term borrowings                     | 1,987 |  |   | 1,279 |  |   | 6,322 |  |   | 3,353 |  |
| Interest on subordinated debentures                   | 663 |  |   | 588 |  |   | 1,941 |  |   | 1,736 |  |
| Interest on other long-term debt                      | 86 |  |   | 192 |  |   | 261 |  |   | 633 |  |
| Total interest expense                                | 4,861 |  |   | 3,816 |  |   | 14,166 |  |   | 11,509 |  |
| Net Interest Income                                   | 49,618 |  |   | 46,685 |  |   | 147,516 |  |   | 140,227 |  |
| Provision for credit losses                           | 3,408 |  |   | 4,621 |  |   | 20,306 |  |   | 8,818 |  |
| Net Interest Income after Provision for Credit Losses | 46,210 |  |   | 42,064 |  |   | 127,210 |  |   | 131,409 |  |
| Noninterest Income                                    |   |   |   |   |   |   |   |
| Net securities gains                                  | — |  |   | — |  |   | 28 |  |   | 125 |  |
| Trust income                                          | 1,523 |  |   | 1,614 |  |   | 4,098 |  |   | 4,511 |  |
| Service charges on deposit accounts                   | 3,975 |  |   | 4,081 |  |   | 11,528 |  |   | 11,271 |  |
| Insurance and retail brokerage commissions            | 2,104 |  |   | 2,163 |  |   | 6,048 |  |   | 6,536 |  |
| Income from bank owned life insurance                 | 1,350 |  |   | 1,357 |  |   | 3,957 |  |   | 4,089 |  |
| Gain on sale of mortgage loans                        | 1,235 |  |   | 832 |  |   | 2,850 |  |   | 1,856 |  |
| Gain on sale of other loans and assets                | 387 |  |   | 808 |  |   | 1,048 |  |   | 1,428 |  |
| Card-related interchange income                       | 3,698 |  |   | 3,637 |  |   | 11,039 |  |   | 10,784 |  |
| Derivatives mark to market                            | 470 |  |   | (783 | ) |   | (1,075 | ) |   | (420 | ) |
| Swap fee income                                       | 725 |  |   | 84 |  |   | 1,985 |  |   | 727 |  |
| Other income                                          | 1,527 |  |   | 1,712 |  |   | 4,761 |  |   | 5,136 |  |
| Total noninterest income                              | 16,994 |  |   | 15,505 |  |   | 46,267 |  |   | 46,043 |  |
| Noninterest Expense                                   |   |   |   |   |   |   |   |
| Salaries and employee benefits                        | 20,647 |  |   | 22,446 |  |   | 62,212 |  |   | 66,339 |  |
| Net occupancy expense                                 | 3,176 |  |   | 3,291 |  |   | 9,843 |  |   | 10,518 |  |
| Furniture and equipment expense                       | 2,847 |  |   | 2,670 |  |   | 8,596 |  |   | 7,980 |  |
| Data processing expense                               | 1,832 |  |   | 1,558 |  |   | 5,379 |  |   | 4,505 |  |
| Advertising and promotion expense                     | 750 |  |   | 789 |  |   | 1,940 |  |   | 1,946 |  |
| Pennsylvania shares tax expense                       | 914 |  |   | 1,713 |  |   | 2,764 |  |   | 3,617 |  |
| Intangible amortization                               | 67 |  |   | 157 |  |   | 318 |  |   | 469 |  |
| Collection and repossession expense                   | 760 |  |   | 801 |  |   | 1,803 |  |   | 2,229 |  |
| Other professional fees and services                  | 1,202 |  |   | 1,002 |  |   | 2,866 |  |   | 2,877 |  |
| FDIC insurance                                        | 1,105 |  |   | 963 |  |   | 3,205 |  |   | 3,047 |  |
| Loss on sale or write-down of assets                  | 188 |  |   | 140 |  |   | 629 |  |   | 2,037 |  |
| Litigation and operational losses                     | 295 |  |   | 314 |  |   | 1,174 |  |   | 1,637 |  |
| Merger and acquisition related                        | 118 |  |   | 28 |  |   | 358 |  |   | 28 |  |
| Other operating expenses                              | 4,795 |  |   | 4,385 |  |   | 13,163 |  |   | 13,516 |  |
| Total noninterest expense                             | 38,696 |  |   | 40,257 |  |   | 114,250 |  |   | 120,745 |  |
| Income Before Income Taxes                            | 24,508 |  |   | 17,312 |  |   | 59,227 |  |   | 56,707 |  |
| Income tax provision                                  | 7,312 |  |   | 4,898 |  |   | 17,551 |  |   | 16,625 |  |
| Net Income                                            | $ | 17,196 |  |   | $ | 12,414 |  |   | $ | 41,676 |  |   | $ | 40,082 |  |
| Average Shares Outstanding                            | 88,854,448 |  |   | 88,807,294 |  |   | 88,842,143 |  |   | 89,527,560 |  |
| Average Shares Outstanding Assuming Dilution          | 88,858,204 |  |   | 88,813,746 |  |   | 88,843,939 |  |   | 89,531,498 |  |
| Per Share Data:                                       |   |   |   |   |   |   |   |
| Basic Earnings per Share                              | $ | 0.19 |  |   | $ | 0.14 |  |   | $ | 0.47 |  |   | $ | 0.45 |  |
| Diluted Earnings per Share                            | $ | 0.19 |  |   | $ | 0.14 |  |   | $ | 0.47 |  |   | $ | 0.45 |  |
| Cash Dividends Declared per Common Share              | $ | 0.07 |  |   | $ | 0.07 |  |   | $ | 0.21 |  |   | $ | 0.21 |  |

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Table of Contents

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | For the Three Months Ended |   | For the Nine Months Ended |
|                                                                               | September 30, |   | September 30, |
|                                                                               | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                                                               | (dollars in thousands) |
| Net Income                                                                         | $ | 17,196 |  |   | $ | 12,414 |  |   | $ | 41,676 |  |   | $ | 40,082 |  |
| Other comprehensive (loss) income, before tax benefit (expense):                   |   |   |   |   |   |   |   |
| Unrealized holding (losses) gains on securities arising during the period          | (751 | ) |   | 6,344 |  |   | 13,121 |  |   | 12,510 |  |
| Less: reclassification adjustment for gains on securities included in net income   | — |  |   | — |  |   | (28 | ) |   | (125 | ) |
| Unrealized holding (losses) gains on derivatives arising during the period         | (1,056 | ) |   | 1,504 |  |   | 1,038 |  |   | 2,172 |  |
| Less: reclassification adjustment for gains on derivatives included in net income  | (16 | ) |   | — |  |   | (57 | ) |   | (6 | ) |
| Total other comprehensive (loss) income, before tax benefit (expense)              | (1,823 | ) |   | 7,848 |  |   | 14,074 |  |   | 14,551 |  |
| Income tax benefit (expense) related to items of other comprehensive (loss) income | 638 |  |   | (2,747 | ) |   | (4,926 | ) |   | (5,091 | ) |
| Total other comprehensive (loss) income                                            | (1,185 | ) |   | 5,101 |  |   | 9,148 |  |   | 9,460 |  |
| Comprehensive Income                                                               | $ | 16,011 |  |   | $ | 17,515 |  |   | $ | 50,824 |  |   | $ | 49,542 |  |

----

Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | SharesOutstanding |   | CommonStock |   | AdditionalPaid-in-Capital |   | RetainedEarnings |   | AccumulatedOtherComprehensiveIncome (Loss),net |   | TreasuryStock |   | TotalShareholders’Equity |
|                                      | (dollars in thousands, except share and per share data) |
| Balance at December 31, 2015         | 88,961,268 |  |   | $ | 105,563 |  |   | $ | 365,981 |  |   | $ | 378,081 |  |   | $ | (2,386 | ) |   | $ | (127,693 | ) |   | $ | 719,546 |  |
| Net income                                |   |   |   |   |   |   | 41,676 |  |   |   |   |   |   | 41,676 |  |
| Other comprehensive income                |   |   |   |   |   |   |   |   | 9,148 |  |   |   |   | 9,148 |  |
| Cash dividends declared ($0.21 per share) |   |   |   |   |   |   | (18,678 | ) |   |   |   |   |   | (18,678 | ) |
| Treasury stock acquired                   | (98,687 | ) |   |   |   |   |   |   |   |   |   | (864 | ) |   | (864 | ) |
| Treasury stock reissued                   | 23,148 |  |   |   |   | 39 |  |   | — |  |   |   |   | 177 |  |   | 216 |  |
| Restricted stock                          | 106,348 |  |   | — |  |   | 271 |  |   | — |  |   |   |   | 472 |  |   | 743 |  |
| Balance at September 30, 2016        | 88,992,077 |  |   | $ | 105,563 |  |   | $ | 366,291 |  |   | $ | 401,079 |  |   | $ | 6,762 |  |   | $ | (127,908 | ) |   | $ | 751,787 |  |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | SharesOutstanding |   | CommonStock |   | AdditionalPaid-in-Capital |   | RetainedEarnings |   | AccumulatedOtherComprehensiveIncome (Loss),net |   | TreasuryStock |   | TotalShareholders’Equity |
|                                      | (dollars in thousands, except share and per share data) |
| Balance at December 31, 2014         | 91,723,028 |  |   | $ | 105,563 |  |   | $ | 365,615 |  |   | $ | 353,027 |  |   | $ | (4,499 | ) |   | $ | (103,561 | ) |   | $ | 716,145 |  |
| Net income                                |   |   |   |   |   |   | 40,082 |  |   |   |   |   |   | 40,082 |  |
| Other comprehensive income                |   |   |   |   |   |   |   |   | 9,460 |  |   |   |   | 9,460 |  |
| Cash dividends declared ($0.21 per share) |   |   |   |   |   |   | (18,862 | ) |   |   |   |   |   | (18,862 | ) |
| Treasury stock acquired                   | (2,918,066 | ) |   |   |   |   |   |   |   |   |   | (25,383 | ) |   | (25,383 | ) |
| Treasury stock reissued                   | 20,936 |  |   |   |   | 32 |  |   | — |  |   |   |   | 160 |  |   | 192 |  |
| Restricted stock                          | 135,370 |  |   | — |  |   | 303 |  |   | — |  |   |   |   | 831 |  |   | 1,134 |  |
| Balance at September 30, 2015        | 88,961,268 |  |   | $ | 105,563 |  |   | $ | 365,950 |  |   | $ | 374,247 |  |   | $ | 4,961 |  |   | $ | (127,953 | ) |   | $ | 722,768 |  |

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Table of Contents

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |
|                                                                             | For the Nine Months Ended |
|                                                                             | September 30, |
|                                                                             | 2016 |   | 2015 |
| Operating Activities                                                             | (dollars in thousands) |
| Net income                                                                       | $ | 41,676 |  |   | $ | 40,082 |  |
| Adjustment to reconcile net income to net cash provided by operating activities: |   |   |   |
| Provision for credit losses                                                      | 20,306 |  |   | 8,818 |  |
| Deferred tax expense                                                             | 4,332 |  |   | 12,520 |  |
| Depreciation and amortization                                                    | 5,234 |  |   | 5,750 |  |
| Net gains on securities and other assets                                         | (2,288 | ) |   | (952 | ) |
| Net amortization of premiums and discounts on securities                         | 3,486 |  |   | 2,012 |  |
| Income from increase in cash surrender value of bank owned life insurance        | (3,957 | ) |   | (4,089 | ) |
| Increase in interest receivable                                                  | (50 | ) |   | (167 | ) |
| Mortgage loans originated for sale                                               | (94,611 | ) |   | (67,708 | ) |
| Proceeds from sale of mortgage loans                                             | 95,341 |  |   | 67,071 |  |
| Decrease in interest payable                                                     | (324 | ) |   | (173 | ) |
| Decrease in income taxes payable                                                 | (3,055 | ) |   | (22 | ) |
| Other-net                                                                        | (6,200 | ) |   | (10,757 | ) |
| Net cash provided by operating activities                                        | 59,890 |  |   | 52,385 |  |
| Investing Activities                                                             |   |   |   |
| Transactions with securities held to maturity:                                   |   |   |   |
| Proceeds from maturities and redemptions                                         | 35,470 |  |   | 3,828 |  |
| Purchases                                                                        | (42,837 | ) |   | (156,756 | ) |
| Transactions with securities available for sale:                                 |   |   |   |
| Proceeds from sales                                                              | 55,744 |  |   | — |  |
| Proceeds from maturities and redemptions                                         | 122,828 |  |   | 286,924 |  |
| Purchases                                                                        | (94,777 | ) |   | (16,600 | ) |
| Purchases of FHLB stock                                                          | (31,218 | ) |   | (46,911 | ) |
| Proceeds from the redemption of FHLB stock                                       | 40,104 |  |   | 36,980 |  |
| Proceeds from bank owned life insurance                                          | 203 |  |   | 378 |  |
| Proceeds from sale of loans                                                      | 3,511 |  |   | 2,898 |  |
| Proceeds from sale of other assets                                               | 6,021 |  |   | 3,668 |  |
| Net increase in loans                                                            | (200,269 | ) |   | (140,268 | ) |
| Purchases of other assets                                                        | (204 | ) |   | — |  |
| Purchases of premises and equipment                                              | (5,511 | ) |   | (3,740 | ) |
| Net cash used in investing activities                                            | (110,935 | ) |   | (29,599 | ) |
| Financing Activities                                                             |   |   |   |
| Net (decrease) increase in federal funds purchased                               | (1,000 | ) |   | 11,000 |  |
| Net (decrease) increase in other short-term borrowings                           | (179,498 | ) |   | 212,918 |  |
| Net increase (decrease) in deposits                                              | 263,392 |  |   | (154,018 | ) |
| Repayments of other long-term debt                                               | (422 | ) |   | (50,407 | ) |
| Dividends paid                                                                   | (18,678 | ) |   | (18,862 | ) |
| Proceeds from reissuance of treasury stock                                       | 216 |  |   | 192 |  |
| Purchase of treasury stock                                                       | (864 | ) |   | (25,383 | ) |
| Net cash provided by (used in) financing activities                              | 63,146 |  |   | (24,560 | ) |
| Net increase (decrease) in cash and cash equivalents                             | 12,101 |  |   | (1,774 | ) |
| Cash and cash equivalents at January 1                                      | 69,452 |  |   | 74,538 |  |
| Cash and cash equivalents at September 30                                        | $ | 81,553 |  |   | $ | 72,764 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                        | For the Nine Months Ended September 30, |
|                                                                        | 2016 |   | 2015 |
|                                                                        | Pretax Amount |   | Tax (Expense) Benefit |   | Net of Tax Amount |   | Pretax Amount |   | Tax (Expense) Benefit |   | Net of Tax Amount |
|                                                                        | (dollars in thousands) |
| Unrealized gains on securities:                                             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities arising during the period            | $ | 13,121 |  |   | $ | (4,593 | ) |   | $ | 8,528 |  |   | $ | 12,510 |  |   | $ | (4,377 | ) |   | $ | 8,133 |  |
| Reclassification adjustment for gains on securities included in net income  | (28 | ) |   | 10 |  |   | (18 | ) |   | (125 | ) |   | 44 |  |   | (81 | ) |
| Total unrealized gains on securities                                        | 13,093 |  |   | (4,583 | ) |   | 8,510 |  |   | 12,385 |  |   | (4,333 | ) |   | 8,052 |  |
| Unrealized gains on derivatives:                                            |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on derivatives arising during the period           | 1,038 |  |   | (363 | ) |   | 675 |  |   | 2,172 |  |   | (760 | ) |   | 1,412 |  |
| Reclassification adjustment for gains on derivatives included in net income | (57 | ) |   | 20 |  |   | (37 | ) |   | (6 | ) |   | 2 |  |   | (4 | ) |
| Total unrealized gains on derivatives                                       | 981 |  |   | (343 | ) |   | 638 |  |   | 2,166 |  |   | (758 | ) |   | 1,408 |  |
| Total other comprehensive income                                            | $ | 14,074 |  |   | $ | (4,926 | ) |   | $ | 9,148 |  |   | $ | 14,551 |  |   | $ | (5,091 | ) |   | $ | 9,460 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                        | For the Three Months Ended September 30, |
|                                                                        | 2016 |   | 2015 |
|                                                                        | Pretax Amount |   | Tax (Expense) Benefit |   | Net of Tax Amount |   | Pretax Amount |   | Tax (Expense) Benefit |   | Net of Tax Amount |
|                                                                        | (dollars in thousands) |
| Unrealized (losses) gains on securities:                                    |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding (losses) gains on securities arising during the period   | $ | (751 | ) |   | $ | 262 |  |   | $ | (489 | ) |   | $ | 6,344 |  |   | $ | (2,221 | ) |   | $ | 4,123 |  |
| Reclassification adjustment for losses on securities included in net income | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total unrealized (losses) gains on securities                               | (751 | ) |   | 262 |  |   | (489 | ) |   | 6,344 |  |   | (2,221 | ) |   | 4,123 |  |
| Unrealized (losses) gains on derivatives:                                   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding (losses) gains on derivatives arising during the period  | (1,056 | ) |   | 370 |  |   | (686 | ) |   | 1,504 |  |   | (526 | ) |   | 978 |  |
| Reclassification adjustment for gains on derivatives included in net income | (16 | ) |   | 6 |  |   | (10 | ) |   | — |  |   | — |  |   | — |  |
| Total unrealized (losses) gains on derivatives                              | (1,072 | ) |   | 376 |  |   | (696 | ) |   | 1,504 |  |   | (526 | ) |   | 978 |  |
| Total other comprehensive (loss) income                                     | $ | (1,823 | ) |   | $ | 638 |  |   | $ | (1,185 | ) |   | $ | 7,848 |  |   | $ | (2,747 | ) |   | $ | 5,101 |  |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | 2016 |   | 2015 |
|                                                                    | Securities Available for Sale | Post-Retirement Obligation | Derivatives | Accumulated Other Comprehensive Income |   | Securities Available for Sale | Post-Retirement Obligation | Derivatives | Accumulated Other Comprehensive Income |
|                                                                    | (dollars in thousands) |
| Balance at December 31                                             | $ | (2,956 | ) | $ | 10 |  | $ | 560 |  | $ | (2,386 | ) |   | $ | (4,875 | ) | $ | 76 |  | $ | 300 |  | $ | (4,499 | ) |
| Other comprehensive income before reclassification adjustment           | 8,528 |  | — |  | 675 |  | 9,203 |  |   | 8,133 |  | — |  | 1,412 |  | 9,545 |  |
| Amounts reclassified from accumulated other comprehensive (loss) income | (18 | ) | — |  | (37 | ) | (55 | ) |   | (81 | ) | — |  | (4 | ) | (85 | ) |
| Net other comprehensive income during the period                        | 8,510 |  | — |  | 638 |  | 9,148 |  |   | 8,052 |  | — |  | 1,408 |  | 9,460 |  |
| Balance at September 30                                            | $ | 5,554 |  | $ | 10 |  | $ | 1,198 |  | $ | 6,762 |  |   | $ | 3,177 |  | $ | 76 |  | $ | 1,708 |  | $ | 4,961 |  |

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |
|                                                                       | 2016 |   | 2015 |
|                                                                       | (dollars in thousands) |
| Cash paid during the period for:                                           |   |   |   |
| Interest                                                                   | $ | 14,768 |  |   | $ | 11,682 |  |
| Income taxes                                                               | 15,750 |  |   | 4,000 |  |
| Non-cash investing and financing activities:                               |   |   |   |
| Loans transferred to other real estate owned and repossessed assets        | 3,973 |  |   | 7,413 |  |
| Loans transferred from held to maturity to held for sale                   | 3,573 |  |   | 3,071 |  |
| Gross increase in market value adjustment to securities available for sale | 13,094 |  |   | 12,381 |  |
| Gross increase in market value adjustment to derivatives                   | 981 |  |   | 2,167 |  |
| Investments committed to purchase, not settled                             | 276 |  |   | 1,350 |  |
| Proceeds from death benefit on bank-owned life insurance not received      | 320 |  |   | — |  |

----

|                                                                                                          |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                          |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                     | For the Three Months Ended September 30, |   | For the Nine Months Ended September 30, |
|                                                                                                     | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Weighted average common shares issued                                                                    | 105,563,455 |  |   | 105,563,455 |  |   | 105,563,455 |  |   | 105,563,455 |  |
| Average treasury stock shares                                                                            | (16,609,505 | ) |   | (16,602,502 | ) |   | (16,617,616 | ) |   | (15,858,433 | ) |
| Average unearned nonvested shares                                                                        | (99,502 | ) |   | (153,659 | ) |   | (103,696 | ) |   | (177,462 | ) |
| Weighted average common shares and common stock equivalents used to calculate basic earnings per share   | 88,854,448 |  |   | 88,807,294 |  |   | 88,842,143 |  |   | 89,527,560 |  |
| Additional common stock equivalents (nonvested stock) used to calculate diluted earnings per share       | 3,756 |  |   | 6,452 |  |   | 1,796 |  |   | 3,938 |  |
| Weighted average common shares and common stock equivalents used to calculate diluted earnings per share | 88,858,204 |  |   | 88,813,746 |  |   | 88,843,939 |  |   | 89,531,498 |  |

|                  |
|------------------|
|                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|             | 2016 |   | 2015 |
|             |   |   | Price Range |   |   |   | Price Range |
|             | Shares |   | From |   | To |   | Shares |   | From |   | To |
| Restricted Stock | 72,432 |  |   | $ | 8.38 |  |   | $ | 10.09 |  |   | 121,091 |  |   | $ | 5.26 |  |   | $ | 9.84 |  |

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                | September 30, 2016 |   | December 31, 2015 |
|                                                                | (dollars in thousands) |
| Financial instruments whose contract amounts represent credit risk: |   |   |   |
| Commitments to extend credit                                        | $ | 1,598,318 |  |   | $ | 1,643,187 |  |
| Financial standby letters of credit                                 | 17,760 |  |   | 17,843 |  |
| Performance standby letters of credit                               | 28,110 |  |   | 26,497 |  |
| Commercial letters of credit                                        | 1,528 |  |   | 1,672 |  |

----

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   | September 30, 2016 |   | December 31, 2015 |
|                                                   | AmortizedCost |   | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFair Value |   | AmortizedCost |   | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFair Value |
|                                                   | (dollars in thousands) |
| Obligations of U.S. Government Agencies:               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities – Residential         | $ | 16,059 |  |   | $ | 1,917 |  |   | $ | — |  |   | $ | 17,976 |  |   | $ | 20,034 |  |   | $ | 2,071 |  |   | $ | (13 | ) |   | $ | 22,092 |  |
| Obligations of U.S. Government-Sponsored Enterprises:  |   |   |   |   |   |   |  |   |   |   |   |   |   |   |  |
| Mortgage-Backed Securities – Residential         | 692,092 |  |   | 13,090 |  |   | (556 | ) |   | 704,626 |  |   | 778,476 |  |   | 7,983 |  |   | (8,882 | ) |   | 777,577 |  |
| Mortgage-Backed Securities – Commercial          | 1 |  |   | — |  |   | — |  |   | 1 |  |   | 28 |  |   | — |  |   | — |  |   | 28 |  |
| Other Government-Sponsored Enterprises                 | 19,300 |  |   | 7 |  |   | — |  |   | 19,307 |  |   | 19,201 |  |   | 2 |  |   | (85 | ) |   | 19,118 |  |
| Obligations of States and Political Subdivisions       | 27,073 |  |   | 878 |  |   | — |  |   | 27,951 |  |   | 27,066 |  |   | 532 |  |   | — |  |   | 27,598 |  |
| Corporate Securities                                   | 5,901 |  |   | 618 |  |   | — |  |   | 6,519 |  |   | 1,897 |  |   | 422 |  |   | — |  |   | 2,319 |  |
| Pooled Trust Preferred Collateralized Debt Obligations | 43,020 |  |   | 677 |  |   | (8,088 | ) |   | 35,609 |  |   | 42,239 |  |   | 916 |  |   | (7,497 | ) |   | 35,658 |  |
| Total Debt Securities                                  | 803,446 |  |   | 17,187 |  |   | (8,644 | ) |   | 811,989 |  |   | 888,941 |  |   | 11,926 |  |   | (16,477 | ) |   | 884,390 |  |
| Equities                                               | 1,670 |  |   | — |  |   | — |  |   | 1,670 |  |   | 2,170 |  |   | — |  |   | — |  |   | 2,170 |  |
| Total Securities Available for Sale                    | $ | 805,116 |  |   | $ | 17,187 |  |   | $ | (8,644 | ) |   | $ | 813,659 |  |   | $ | 891,111 |  |   | $ | 11,926 |  |   | $ | (16,477 | ) |   | $ | 886,560 |  |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |
|                                | AmortizedCost |   | EstimatedFair Value |
|                                | (dollars in thousands) |
| Due within 1 year                   | $ | 5,600 |  |   | $ | 5,602 |  |
| Due after 1 but within 5 years      | 17,697 |  |   | 17,756 |  |
| Due after 5 but within 10 years     | 27,073 |  |   | 27,951 |  |
| Due after 10 years                  | 44,924 |  |   | 38,077 |  |
|                                | 95,294 |  |   | 89,386 |  |
| Mortgage-Backed Securities (a) | 708,152 |  |   | 722,603 |  |
| Total Debt Securities               | $ | 803,446 |  |   | $ | 811,989 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                    |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Mortgage Backed Securities include an amortized cost of $16.1 million and a fair value of $18.0 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $692.1 million and a fair value of $704.6 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac. |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
|                            | 2016 |   | 2015 |
|                            | (dollars in thousands) |
| Proceeds from sales             | $ | 55,744 |  |   | $ | — |  |
| Gross gains (losses) realized:  |   |   |   |
| Sales Transactions:             |   |   |   |
| Gross gains                     | $ | 304 |  |   | $ | — |  |
| Gross losses                    | (276 | ) |   | — |  |
|                            | 28 |  |   | — |  |
| Maturities and impairment       |   |   |   |
| Gross gains                     | — |  |   | 125 |  |
| Gross losses                    | — |  |   | — |  |
| Other-than-temporary impairment | — |  |   | — |  |
|                            | — |  |   | 125 |  |
| Net gains and impairment        | $ | 28 |  |   | $ | 125 |  |

----

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | September 30, 2016 |   | December 31, 2015 |
|                                                  | AmortizedCost |   | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFair Value |   | AmortizedCost |   | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFair Value |
|                                                  | (dollars in thousands) |
| Obligations of U.S. Government Agencies:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities – Residential        | $ | 4,615 |  |   | $ | 154 |  |   | $ | — |  |   | $ | 4,769 |  |   | $ | 4,775 |  |   | $ | — |  |   | $ | (7 | ) |   | $ | 4,768 |  |
| Mortgage-Backed Securities- Commercial                | 35,625 |  |   | 225 |  |   | — |  |   | 35,850 |  |   | 16,843 |  |   | — |  |   | (247 | ) |   | 16,596 |  |
| Obligations of U.S. Government-Sponsored Enterprises: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities – Residential        | 297,681 |  |   | 5,865 |  |   | — |  |   | 303,546 |  |   | 315,609 |  |   | 30 |  |   | (1,824 | ) |   | 313,815 |  |
| Mortgage-Backed Securities – Commercial         | 14,809 |  |   | 378 |  |   | — |  |   | 15,187 |  |   | 15,187 |  |   | — |  |   | (178 | ) |   | 15,009 |  |
| Obligations of States and Political Subdivisions      | 36,783 |  |   | 884 |  |   | (25 | ) |   | 37,642 |  |   | 31,910 |  |   | 301 |  |   | (58 | ) |   | 32,153 |  |
| Total Securities Held to Maturity                     | $ | 389,513 |  |   | $ | 7,506 |  |   | $ | (25 | ) |   | $ | 396,994 |  |   | $ | 384,324 |  |   | $ | 331 |  |   | $ | (2,314 | ) |   | $ | 382,341 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |
|                                | AmortizedCost |   | EstimatedFair Value |
|                                | (dollars in thousands) |
| Due within 1 year                   | $ | — |  |   | $ | — |  |
| Due after 1 but within 5 years      | 1,223 |  |   | 1,249 |  |
| Due after 5 but within 10 years     | 29,368 |  |   | 30,125 |  |
| Due after 10 years                  | 6,192 |  |   | 6,268 |  |
|                                | 36,783 |  |   | 37,642 |  |
| Mortgage-Backed Securities (a) | 352,730 |  |   | 359,352 |  |
| Total Debt Securities               | $ | 389,513 |  |   | $ | 396,994 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                    |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Mortgage Backed Securities include an amortized cost of $40.2 million and a fair value of $40.6 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $312.5 million and a fair value of $318.7 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac. |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   | Less Than 12 Months |   | 12 Months or More |   | Total |
|                                                   | EstimatedFair Value |   | GrossUnrealizedLosses |   | EstimatedFair Value |   | GrossUnrealizedLosses |   | EstimatedFair Value |   | GrossUnrealizedLosses |
|                                                   | (dollars in thousands) |
| Obligations of U.S. Government-Sponsored Enterprises:  |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities – Residential         | $ | 59,691 |  |   | $ | (137 | ) |   | $ | 60,909 |  |   | $ | (419 | ) |   | $ | 120,600 |  |   | $ | (556 | ) |
| Obligations of States and Political Subdivisions       | 1,781 |  |   | (25 | ) |   | — |  |   | — |  |   | 1,781 |  |   | (25 | ) |
| Pooled Trust Preferred Collateralized Debt Obligations | — |  |   | — |  |   | 29,896 |  |   | (8,088 | ) |   | 29,896 |  |   | (8,088 | ) |
| Total Securities                                       | $ | 61,472 |  |   | $ | (162 | ) |   | $ | 90,805 |  |   | $ | (8,507 | ) |   | $ | 152,277 |  |   | $ | (8,669 | ) |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   | Less Than 12 Months |   | 12 Months or More |   | Total |
|                                                   | EstimatedFair Value |   | GrossUnrealizedLosses |   | EstimatedFair Value |   | GrossUnrealizedLosses |   | EstimatedFair Value |   | GrossUnrealizedLosses |
|                                                   | (dollars in thousands) |
| Obligations of U.S. Government Agencies:               |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities – Residential    | $ | 6,798 |  |   | $ | (20 | ) |   | $ | — |  |   | $ | — |  |   | $ | 6,798 |  |   | $ | (20 | ) |
| Mortgage-Backed Securities - Commercial                | 16,596 |  |   | (247 | ) |   | — |  |   | — |  |   | 16,596 |  |   | (247 | ) |
| Obligations of U.S. Government-Sponsored Enterprises:  |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities – Residential    | 436,011 |  |   | (3,293 | ) |   | 263,119 |  |   | (7,413 | ) |   | 699,130 |  |   | (10,706 | ) |
| Mortgage-Backed Securities – Commercial          | 15,009 |  |   | (178 | ) |   | — |  |   | — |  |   | 15,009 |  |   | (178 | ) |
| Other Government-Sponsored Enterprises                 | 12,316 |  |   | (85 | ) |   | — |  |   | — |  |   | 12,316 |  |   | (85 | ) |
| Obligation of States and Political Subdivisions        | 7,208 |  |   | (58 | ) |   | — |  |   | — |  |   | 7,208 |  |   | (58 | ) |
| Pooled Trust Preferred Collateralized Debt Obligations | — |  |   | — |  |   | 29,957 |  |   | (7,497 | ) |   | 29,957 |  |   | (7,497 | ) |
| Total Securities                                       | $ | 493,938 |  |   | $ | (3,881 | ) |   | $ | 293,076 |  |   | $ | (14,910 | ) |   | $ | 787,014 |  |   | $ | (18,791 | ) |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Deal                   | Class |   | BookValue |   | Estimated FairValue |   | UnrealizedGain(Loss) |   | Moody’s/FitchRatings |   | NumberofBanks |   | DeferralsandDefaultsas a % ofCurrentCollateral |   | ExcessSubordinationas a % ofCurrentPerformingCollateral |
| (dollars in thousands) |
| Pre TSL IV   | Mezzanine |   | $ | 1,830 |  |   | $ | 1,331 |  |   | $ | (499 | ) |   | B1/BB |   | 6 |  |   | 18.05 | % |   | 60.61 | % |
| Pre TSL VII  | Mezzanine |   | 3,119 |  |   | 3,513 |  |   | 394 |  |   | Ca/- |   | 14 |  |   | 47.77 |  |   | 0.00 |  |
| Pre TSL VIII | Mezzanine |   | 2,063 |  |   | 2,025 |  |   | (38 | ) |   | C/C |   | 28 |  |   | 44.37 |  |   | 0.00 |  |
| Pre TSL IX   | Mezzanine |   | 2,403 |  |   | 1,893 |  |   | (510 | ) |   | B1/C |   | 37 |  |   | 27.83 |  |   | 12.79 |  |
| Pre TSL X              | Mezzanine |   | 1,707 |  |   | 1,887 |  |   | 180 |  |   | Caa1/C |   | 42 |  |   | 31.58 |  |   | 2.17 |  |
| Pre TSL XII  | Mezzanine |   | 5,839 |  |   | 4,584 |  |   | (1,255 | ) |   | B3/C |   | 64 |  |   | 24.50 |  |   | 0.00 |  |
| Pre TSL XIII | Mezzanine |   | 12,888 |  |   | 10,504 |  |   | (2,384 | ) |   | Ba3/C |   | 54 |  |   | 11.75 |  |   | 48.41 |  |
| Pre TSL XIV  | Mezzanine |   | 12,960 |  |   | 9,559 |  |   | (3,401 | ) |   | B1/CC |   | 54 |  |   | 13.45 |  |   | 37.92 |  |
| MMCap I                | Mezzanine |   | 211 |  |   | 313 |  |   | 102 |  |   | Ca/C |   | 8 |  |   | 58.11 |  |   | 81.65 |  |
| Total                  |   |   | $ | 43,020 |  |   | $ | 35,609 |  |   | $ | (7,411 | ) |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Estimate of Future Cash Flows – Cash flows are constructed in an INTEX cash flow model which includes each deal’s structural features. Projected cash flows include prepayment assumptions, which are dependent on the issuer's asset size and coupon rate.  For collateral issued by financial institutions over $15 billion in asset size with a coupon over 7%, a 100% prepayment rate is assumed. Financial institutions over $15 billion with a coupon of 7% or under are assigned a prepayment rate of 40% for two years and 2% thereafter. Financial institutions with assets between $2 billion and $15 billion with coupons over 7% are assigned a 5% prepayment rate. For financial institutions below $2 billion, if the coupon |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Credit Analysis – A quarterly credit evaluation is performed for each of the 268 banks comprising the collateral across the various pooled trust preferred securities. Our credit evaluation considers all evidence available to us and includes the nature of the issuer’s business, its years of operating history, corporate structure, loan composition, loan concentrations, deposit mix, asset growth rates, geographic footprint and local economic environment. Our analysis focuses on profitability, return on assets, shareholders’ equity, net interest margin, credit quality ratios, operating efficiency, capital adequacy and liquidity. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Probability of Default – A probability of default is determined for each bank and is used to calculate the expected impact of future deferrals and defaults on our expected cash flows. Each bank in the collateral pool is assigned a probability of default for each year until maturity. Currently, any bank that is in default is assigned a 100% probability of default and a 0% projected recovery rate. All other banks in the pool are assigned a probability of default based on their unique credit characteristics and market indicators with a 10% projected recovery rate. For the majority of banks currently in deferral we assume the bank continues to defer and will eventually default and, therefore, a 100% probability of default is assigned. However, for some deferring collateral there is the possibility that they will become current on interest or principal payments at some point in the future and in those cases a probability that the deferral will ultimately cure is assigned. The probability of default is updated quarterly. As of September 30, 2016, default probabilities for performing collateral ranged from 0.33% to 75%. |

----

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                            | For the Three Months Ended September 30, |   | For the Nine Months Ended September 30, |
|                                                                                                            | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                                                                                            | (dollars in thousands) |
| Balance, beginning (a)                                                                                          | $ | 24,310 |  |   | $ | 25,366 |  |   | $ | 24,851 |  |   | $ | 26,246 |  |
| Credit losses on debt securities for which other-than-temporary impairment was not previously recognized        | — |  |   | — |  |   | — |  |   | — |  |
| Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | — |  |   | — |  |   | — |  |   | — |  |
| Increases in cash flows expected to be collected, recognized over the remaining life of the security (b)        | (270 | ) |   | (255 | ) |   | (811 | ) |   | (917 | ) |
| Reduction for debt securities called during the period                                                          | — |  |   | — |  |   | — |  |   | (218 | ) |
| Balance, ending                                                                                                 | $ | 24,040 |  |   | $ | 25,111 |  |   | $ | 24,040 |  |   | $ | 25,111 |  |

|     |                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods. |

|     |                                                                                        |
|-----|----------------------------------------------------------------------------------------|
| (b) | Represents the increase in cash flows recognized in interest income during the period. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |
|                                          | September 30, 2016 |   | December 31, 2015 |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | $ | 1,207,447 |  |   | $ | 1,150,906 |  |
| Real estate construction                      | 229,375 |  |   | 220,736 |  |
| Residential real estate                       | 1,185,759 |  |   | 1,224,465 |  |
| Commercial real estate                        | 1,683,015 |  |   | 1,479,000 |  |
| Loans to individuals                          | 555,056 |  |   | 608,643 |  |
| Total loans                                   | $ | 4,860,652 |  |   | $ | 4,683,750 |  |

----

|      |
|------|
|      |  |  |
| Pass |    | Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful. |

|                                          |
|------------------------------------------|
|                                          |  |  |
| Other Assets Especially Mentioned (OAEM) |    | Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Company’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected. |

|             |
|-------------|
|             |  |  |
| Substandard |    | Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard. |

|          |
|----------|
|          |  |  |
| Doubtful |    | Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable. |

|                |
|----------------|
|                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|           | September 30, 2016 |
|           | Commercial, financial, agricultural and other |   | Real estate construction |   | Residential real estate |   | Commercial real estate |   | Loans to individuals |   | Total |
|           | (dollars in thousands) |
| Pass           | $ | 1,105,422 |  |   | $ | 229,092 |  |   | $ | 1,172,174 |  |   | $ | 1,661,908 |  |   | $ | 554,792 |  |   | $ | 4,723,388 |  |
| Non-Pass       |   |   |   |   |   |   |   |   |   |   |   |
| OAEM           | 26,758 |  |   | 283 |  |   | 5,962 |  |   | 7,002 |  |   | — |  |   | 40,005 |  |
| Substandard    | 75,267 |  |   | — |  |   | 7,623 |  |   | 14,105 |  |   | 264 |  |   | 97,259 |  |
| Doubtful       | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total Non-Pass | 102,025 |  |   | 283 |  |   | 13,585 |  |   | 21,107 |  |   | 264 |  |   | 137,264 |  |
| Total          | $ | 1,207,447 |  |   | $ | 229,375 |  |   | $ | 1,185,759 |  |   | $ | 1,683,015 |  |   | $ | 555,056 |  |   | $ | 4,860,652 |  |

----

|                |
|----------------|
|                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|           | December 31, 2015 |
|           | Commercial, financial, agricultural and other |   | Real estate construction |   | Residential real estate |   | Commercial real estate |   | Loans to individuals |   | Total |
|           | (dollars in thousands) |
| Pass           | $ | 1,074,858 |  |   | $ | 220,267 |  |   | $ | 1,209,606 |  |   | $ | 1,436,714 |  |   | $ | 608,342 |  |   | $ | 4,549,787 |  |
| Non-Pass       |   |   |   |   |   |   |   |   |   |   |   |
| OAEM           | 11,825 |  |   | 442 |  |   | 5,244 |  |   | 30,012 |  |   | — |  |   | 47,523 |  |
| Substandard    | 64,223 |  |   | 27 |  |   | 9,615 |  |   | 12,274 |  |   | 301 |  |   | 86,440 |  |
| Doubtful       | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total Non-Pass | 76,048 |  |   | 469 |  |   | 14,859 |  |   | 42,286 |  |   | 301 |  |   | 133,963 |  |
| Total          | $ | 1,150,906 |  |   | $ | 220,736 |  |   | $ | 1,224,465 |  |   | $ | 1,479,000 |  |   | $ | 608,643 |  |   | $ | 4,683,750 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | September 30, 2016 |
|                                          | 30 - 59dayspast due |   | 60 - 89dayspastdue |   | 90 daysandgreaterand stillaccruing |   | Nonaccrual |   | Total pastdue andnonaccrual |   | Current |   | Total |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | $ | 780 |  |   | $ | 37 |  |   | $ | 826 |  |   | $ | 30,868 |  |   | $ | 32,511 |  |   | $ | 1,174,936 |  |   | $ | 1,207,447 |  |
| Real estate construction                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 229,375 |  |   | 229,375 |  |
| Residential real estate                       | 3,736 |  |   | 878 |  |   | 527 |  |   | 6,031 |  |   | 11,172 |  |   | 1,174,587 |  |   | 1,185,759 |  |
| Commercial real estate                        | 785 |  |   | 73 |  |   | 195 |  |   | 3,377 |  |   | 4,430 |  |   | 1,678,585 |  |   | 1,683,015 |  |
| Loans to individuals                          | 2,038 |  |   | 615 |  |   | 795 |  |   | 264 |  |   | 3,712 |  |   | 551,344 |  |   | 555,056 |  |
| Total                                         | $ | 7,339 |  |   | $ | 1,603 |  |   | $ | 2,343 |  |   | $ | 40,540 |  |   | $ | 51,825 |  |   | $ | 4,808,827 |  |   | $ | 4,860,652 |  |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | December 31, 2015 |
|                                          | 30 - 59dayspast due |   | 60 - 89dayspastdue |   | 90 daysandgreaterand stillaccruing |   | Nonaccrual |   | Total pastdue andnonaccrual |   | Current |   | Total |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | $ | 364 |  |   | $ | 49 |  |   | $ | 129 |  |   | $ | 23,653 |  |   | $ | 24,195 |  |   | $ | 1,126,711 |  |   | $ | 1,150,906 |  |
| Real estate construction                      | 280 |  |   | — |  |   | — |  |   | 28 |  |   | 308 |  |   | 220,428 |  |   | 220,736 |  |
| Residential real estate                       | 4,175 |  |   | 1,055 |  |   | 1,315 |  |   | 6,500 |  |   | 13,045 |  |   | 1,211,420 |  |   | 1,224,465 |  |
| Commercial real estate                        | 781 |  |   | — |  |   | 65 |  |   | 6,223 |  |   | 7,069 |  |   | 1,471,931 |  |   | 1,479,000 |  |
| Loans to individuals                          | 2,998 |  |   | 774 |  |   | 946 |  |   | 301 |  |   | 5,019 |  |   | 603,624 |  |   | 608,643 |  |
| Total                                         | $ | 8,598 |  |   | $ | 1,878 |  |   | $ | 2,455 |  |   | $ | 36,705 |  |   | $ | 49,636 |  |   | $ | 4,634,114 |  |   | $ | 4,683,750 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | An $11.8 million relationship of commercial industrial loans to a steel and aluminum servicing company.  These loans were originated in 2011 and were placed in nonaccrual status during the first quarter of 2016.  The collateral valuation completed in the third quarter of 2016 incorporated certain estimates obtained in the first quarter of 2016. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A $4.3 million relationship of commercial industrial loans to an oil and gas well services company.  These loans were originated in 2014 and were placed in nonaccrual status during the fourth quarter of 2015.  During the nine months ended September 30, 2016, charge-offs of $2.0 million related to this relationship were recorded. Values used in the September 30, 2016 collateral valuation were updated in the third quarter of 2016. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A $4.0 million relationship of commercial industrial loans to a manufacturer of mine safety products.  These loans were originated from 2014 to 2015 and were placed in nonaccrual status during the second quarter of 2016.  During the nine months ended September 30, 2016, charge-offs of $6.5 million related to this relationship were recorded.  A collateral valuation completed in September 2016 incorporated certain estimates obtained in the second quarter of 2016. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A $3.4 million relationship of commercial industrial loans to a local energy company involved in the drilling and production of natural gas wells.  These loans were originated from 2008 to 2011 and were placed in nonaccrual status during the third quarter of 2013.  Two of these loans were modified resulting in TDR classification: one loan totaling $1.0 million was modified in 2012, and the other loan totaling $2.3 million was modified in 2014.  During the nine months ended September 30, 2016, charge-offs of $1.3 million related to this relationship were recorded.  The September 30, 2016 collateral valuation incorporated estimates obtained in the first quarter of 2016. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A $3.3 million relationship of commercial industrial loans to a gear manufacturer.  These loans were originated in 2013 and were placed in nonaccrual status during the third quarter of 2015.  During the nine months ended September 30, 2016, charge-offs of $0.4 million related to this relationship were recorded.  The September 30, 2016 collateral valuation incorporated estimates obtained in the second quarter of 2016. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | September 30, 2016 |   | December 31, 2015 |
|                                          | Recordedinvestment |   | Unpaidprincipalbalance |   | Relatedallowance |   | Recordedinvestment |   | Unpaidprincipalbalance |   | Relatedallowance |
|                                          | (dollars in thousands) |
| With no related allowance recorded:           |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other | $ | 17,948 |  |   | $ | 27,205 |  |   |  |  |   | $ | 11,344 |  |   | $ | 15,673 |  |   |  |  |
| Real estate construction                      | — |  |   | — |  |   |  |  |   | 28 |  |   | 117 |  |   |  |  |
| Residential real estate                       | 11,506 |  |   | 13,513 |  |   |  |  |   | 9,952 |  |   | 11,819 |  |   |  |  |
| Commercial real estate                        | 6,045 |  |   | 7,244 |  |   |  |  |   | 7,562 |  |   | 9,449 |  |   |  |  |
| Loans to individuals                          | 377 |  |   | 444 |  |   |  |  |   | 421 |  |   | 507 |  |   |  |  |
| Subtotal                                      | 35,876 |  |   | 48,406 |  |   |  |  |   | 29,307 |  |   | 37,565 |  |   |  |  |
| With an allowance recorded:                   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other | 18,238 |  |   | 20,748 |  |   | 7,739 |  |   | 20,132 |  |   | 22,590 |  |   | 6,952 |  |
| Real estate construction                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Residential real estate                       | 175 |  |   | 215 |  |   | 6 |  |   | 461 |  |   | 672 |  |   | 51 |  |
| Commercial real estate                        | 537 |  |   | 537 |  |   | 430 |  |   | 944 |  |   | 1,008 |  |   | 42 |  |
| Loans to individuals                          | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Subtotal                                      | 18,950 |  |   | 21,500 |  |   | 8,175 |  |   | 21,537 |  |   | 24,270 |  |   | 7,045 |  |
| Total                                         | $ | 54,826 |  |   | $ | 69,906 |  |   | $ | 8,175 |  |   | $ | 50,844 |  |   | $ | 61,835 |  |   | $ | 7,045 |  |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | For the Nine Months Ended September 30, |
|                                          | 2016 |   | 2015 |
|                                          | Averagerecordedinvestment |   | InterestIncomeRecognized |   | Averagerecordedinvestment |   | InterestIncomeRecognized |
|                                          | (dollars in thousands) |
| With no related allowance recorded:           |   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other | $ | 24,020 |  |   | $ | 421 |  |   | $ | 19,199 |  |   | $ | 161 |  |
| Real estate construction                      | 6 |  |   | 44 |  |   | 102 |  |   | — |  |
| Residential real estate                       | 11,546 |  |   | 232 |  |   | 10,987 |  |   | 118 |  |
| Commercial real estate                        | 7,143 |  |   | 140 |  |   | 8,545 |  |   | 69 |  |
| Loans to individuals                          | 423 |  |   | 10 |  |   | 312 |  |   | 14 |  |
| Subtotal                                      | 43,138 |  |   | 847 |  |   | 39,145 |  |   | 362 |  |
| With an allowance recorded:                   |   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other | 15,310 |  |   | 77 |  |   | 6,125 |  |   | 100 |  |
| Real estate construction                      | — |  |   | — |  |   | — |  |   | — |  |
| Residential real estate                       | 111 |  |   | — |  |   | 275 |  |   | — |  |
| Commercial real estate                        | 524 |  |   | 18 |  |   | 83 |  |   | 4 |  |
| Loans to individuals                          | — |  |   | — |  |   | — |  |   | — |  |
| Subtotal                                      | 15,945 |  |   | 95 |  |   | 6,483 |  |   | 104 |  |
| Total                                         | $ | 59,083 |  |   | $ | 942 |  |   | $ | 45,628 |  |   | $ | 466 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | For the Three Months Ended September 30, |
|                                          | 2016 |   | 2015 |
|                                          | Averagerecordedinvestment |   | InterestIncomeRecognized |   | Averagerecordedinvestment |   | InterestIncomeRecognized |
|                                          | (dollars in thousands) |
| With no related allowance recorded:           |   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other | $ | 24,674 |  |   | $ | 128 |  |   | $ | 14,215 |  |   | $ | 40 |  |
| Real estate construction                      | — |  |   | — |  |   | 32 |  |   | — |  |
| Residential real estate                       | 11,636 |  |   | 94 |  |   | 10,748 |  |   | 39 |  |
| Commercial real estate                        | 6,463 |  |   | 73 |  |   | 7,894 |  |   | 26 |  |
| Loans to individuals                          | 384 |  |   | 7 |  |   | 314 |  |   | 5 |  |
| Subtotal                                      | 43,157 |  |   | 302 |  |   | 33,203 |  |   | 110 |  |
| With an allowance recorded:                   |   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other | 17,207 |  |   | 22 |  |   | 7,700 |  |   | 29 |  |
| Real estate construction                      | — |  |   | — |  |   | — |  |   | — |  |
| Residential real estate                       | 174 |  |   | — |  |   | 351 |  |   | — |  |
| Commercial real estate                        | 547 |  |   | 7 |  |   | 81 |  |   | 1 |  |
| Loans to individuals                          | — |  |   | — |  |   | — |  |   | — |  |
| Subtotal                                      | 17,928 |  |   | 29 |  |   | 8,132 |  |   | 30 |  |
| Total                                         | $ | 61,085 |  |   | $ | 331 |  |   | $ | 41,335 |  |   | $ | 140 |  |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |
|                             | September 30, 2016 |   | December 31, 2015 |
|                             | (dollars in thousands) |
| Troubled debt restructured loans |   |   |   |
| Accrual status                   | $ | 14,286 |  |   | $ | 14,139 |  |
| Nonaccrual status                | 12,723 |  |   | 12,360 |  |
| Total                            | $ | 27,009 |  |   | $ | 26,499 |  |
| Commitments                      |   |   |   |
| Unused lines of credit           | $ | 349 |  |   | $ | 3,252 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | For the Nine Months Ended September 30, 2016 |
|                                          |   |   | Type of Modification |   |   |   |   |   |   |
|                                          | NumberofContracts |   | ExtendMaturity |   | ModifyRate |   | ModifyPayments |   | TotalPre-ModificationOutstandingRecordedInvestment |   | Post-ModificationOutstandingRecordedInvestment |   | SpecificReserve |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | 5 |  |   | $ | 93 |  |   | $ | 4,009 |  |   | $ | 3,853 |  |   | $ | 7,955 |  |   | $ | 7,281 |  |   | $ | 1,612 |  |
| Residential real estate                       | 35 |  |   | — |  |   | 214 |  |   | 2,548 |  |   | 2,762 |  |   | 2,620 |  |   | — |  |
| Commercial real estate                        | 7 |  |   | 1,348 |  |   | — |  |   | 25 |  |   | 1,373 |  |   | 1,285 |  |   | 68 |  |
| Loans to individuals                          | 10 |  |   | — |  |   | 71 |  |   | 25 |  |   | 96 |  |   | 76 |  |   | — |  |
| Total                                         | 57 |  |   | $ | 1,441 |  |   | $ | 4,294 |  |   | $ | 6,451 |  |   | $ | 12,186 |  |   | $ | 11,262 |  |   | $ | 1,680 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | For the Nine Months Ended September 30, 2015 |
|                                          |   |   | Type of Modification |   |   |   |   |   |   |
|                                          | NumberofContracts |   | ExtendMaturity |   | ModifyRate |   | ModifyPayments |   | TotalPre-ModificationOutstandingRecordedInvestment |   | Post-ModificationOutstandingRecordedInvestment |   | SpecificReserve |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | 4 |  |   | $ | 1,751 |  |   | $ | — |  |   | $ | 652 |  |   | $ | 2,403 |  |   | $ | 2,314 |  |   | $ | 52 |  |
| Residential real estate                       | 24 |  |   | — |  |   | 296 |  |   | 958 |  |   | 1,254 |  |   | 1,165 |  |   | — |  |
| Commercial real estate                        | 1 |  |   | — |  |   | — |  |   | 464 |  |   | 464 |  |   | 407 |  |   | — |  |
| Loans to individuals                          | 8 |  |   | — |  |   | 61 |  |   | 35 |  |   | 96 |  |   | 77 |  |   | — |  |
| Total                                         | 37 |  |   | $ | 1,751 |  |   | $ | 357 |  |   | $ | 2,109 |  |   | $ | 4,217 |  |   | $ | 3,963 |  |   | $ | 52 |  |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | For the Three Months Ended September 30, 2016 |
|                                          |   |   | Type of Modification |   |   |   |   |   |   |
|                                          | NumberofContracts |   | ExtendMaturity |   | ModifyRate |   | ModifyPayments |   | TotalPre-ModificationOutstandingRecordedInvestment |   | Post-ModificationOutstandingRecordedInvestment |   | SpecificReserve |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 3,853 |  |   | $ | 3,853 |  |   | $ | 3,853 |  |   | $ | 1,612 |  |
| Residential real estate                       | 11 |  |   | — |  |   | 100 |  |   | 373 |  |   | 473 |  |   | 441 |  |   | — |  |
| Commercial real estate                        | 1 |  |   | 85 |  |   | — |  |   | — |  |   | 85 |  |   | 85 |  |   | — |  |
| Loans to individuals                          | 4 |  |   | — |  |   | 42 |  |   | 10 |  |   | 52 |  |   | 45 |  |   | — |  |
| Total                                         | 17 |  |   | $ | 85 |  |   | $ | 142 |  |   | $ | 4,236 |  |   | $ | 4,463 |  |   | $ | 4,424 |  |   | $ | 1,612 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | For the Three Months Ended, September 30, 2015 |
|                                          |   |   | Type of Modification |   |   |   |   |   |   |
|                                          | NumberofContracts |   | ExtendMaturity |   | ModifyRate |   | ModifyPayments |   | TotalPre-ModificationOutstandingRecordedInvestment |   | Post-ModificationOutstandingRecordedInvestment |   | SpecificReserve |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 543 |  |   | $ | 543 |  |   | $ | 525 |  |   | $ | — |  |
| Residential real estate                       | 8 |  |   | — |  |   | — |  |   | 455 |  |   | 455 |  |   | 455 |  |   | — |  |
| Loans to individuals                          | 2 |  |   | — |  |   | — |  |   | 18 |  |   | 18 |  |   | 16 |  |   | — |  |
| Total                                         | 11 |  |   | $ | — |  |   | $ | — |  |   | $ | 1,016 |  |   | $ | 1,016 |  |   | $ | 996 |  |   | $ | — |  |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | 2016 |   | 2015 |
|                    | Number ofContracts |   | RecordedInvestment |   | Number ofContracts |   | RecordedInvestment |
|                    | (dollars in thousands) |
| Residential real estate | — |  |   | $ | — |  |   | 3 |  |   | $ | 108 |  |
| Total                   | — |  |   | $ | — |  |   | 3 |  |   | $ | 108 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | 2016 |   | 2015 |
|                    | Number ofContracts |   | RecordedInvestment |   | Number ofContracts |   | RecordedInvestment |
|                    | (dollars in thousands) |
| Residential real estate | — |  |   | $ | — |  |   | 2 |  |   | $ | 105 |  |
| Total                   | — |  |   | $ | — |  |   | 2 |  |   | $ | 105 |  |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | For the Nine Months Ended September 30, 2016 |
|                                                  | Commercial,financial,agriculturaland other |   | Real estateconstruction |   | Residentialreal estate |   | Commercialreal estate |   | Loans toindividuals |   | Total |
|                                                  | (dollars in thousands) |
| Allowance for credit losses:                          |   |   |   |   |   |   |   |   |   |   |   |
| Beginning Balance                                     | $ | 31,035 |  |   | $ | 887 |  |   | $ | 2,606 |  |   | $ | 11,924 |  |   | $ | 4,360 |  |   | $ | 50,812 |  |
| Charge-offs                                           | (13,308 | ) |   | — |  |   | (976 | ) |   | (418 | ) |   | (3,751 | ) |   | (18,453 | ) |
| Recoveries                                            | 261 |  |   | 227 |  |   | 407 |  |   | 803 |  |   | 371 |  |   | 2,069 |  |
| Provision (credit)                                    | 23,935 |  |   | (638 | ) |   | 330 |  |   | (6,725 | ) |   | 3,404 |  |   | 20,306 |  |
| Ending Balance                                        | $ | 41,923 |  |   | $ | 476 |  |   | $ | 2,367 |  |   | $ | 5,584 |  |   | $ | 4,384 |  |   | $ | 54,734 |  |
| Ending balance: individually evaluated for impairment | $ | 7,739 |  |   | $ | — |  |   | $ | 6 |  |   | $ | 430 |  |   | $ | — |  |   | $ | 8,175 |  |
| Ending balance: collectively evaluated for impairment | 34,184 |  |   | 476 |  |   | 2,361 |  |   | 5,154 |  |   | 4,384 |  |   | 46,559 |  |
| Loans:                                                |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                        | 1,207,447 |  |   | 229,375 |  |   | 1,185,759 |  |   | 1,683,015 |  |   | 555,056 |  |   | 4,860,652 |  |
| Ending balance: individually evaluated for impairment | 35,501 |  |   | — |  |   | 5,670 |  |   | 5,081 |  |   | — |  |   | 46,252 |  |
| Ending balance: collectively evaluated for impairment | 1,171,946 |  |   | 229,375 |  |   | 1,180,089 |  |   | 1,677,934 |  |   | 555,056 |  |   | 4,814,400 |  |

----

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | For the Nine Months Ended September 30, 2015 |
|                                                  | Commercial,financial,agriculturaland other |   | Real estateconstruction |   | Residentialreal estate |   | Commercialreal estate |   | Loans toindividuals |   | Total |
|                                                  | (dollars in thousands) |
| Allowance for credit losses:                          |   |   |   |   |   |   |   |   |   |   |   |
| Beginning Balance                                     | $ | 29,627 |  |   | $ | 2,063 |  |   | $ | 3,664 |  |   | $ | 11,881 |  |   | $ | 4,816 |  |   | $ | 52,051 |  |
| Charge-offs                                           | (8,579 | ) |   | — |  |   | (1,351 | ) |   | (1,249 | ) |   | (3,283 | ) |   | (14,462 | ) |
| Recoveries                                            | 922 |  |   | 84 |  |   | 417 |  |   | 186 |  |   | 502 |  |   | 2,111 |  |
| Provision (credit)                                    | 5,230 |  |   | (554 | ) |   | (54 | ) |   | 1,584 |  |   | 2,612 |  |   | 8,818 |  |
| Ending Balance                                        | $ | 27,200 |  |   | $ | 1,593 |  |   | $ | 2,676 |  |   | $ | 12,402 |  |   | $ | 4,647 |  |   | $ | 48,518 |  |
| Ending balance: individually evaluated for impairment | $ | 4,202 |  |   | $ | — |  |   | $ | 20 |  |   | $ | 33 |  |   | $ | — |  |   | $ | 4,255 |  |
| Ending balance: collectively evaluated for impairment | 22,998 |  |   | 1,593 |  |   | 2,656 |  |   | 12,369 |  |   | 4,647 |  |   | 44,263 |  |
| Loans:                                                |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                        | 1,126,881 |  |   | 179,710 |  |   | 1,204,220 |  |   | 1,435,954 |  |   | 628,970 |  |   | 4,575,735 |  |
| Ending balance: individually evaluated for impairment | 22,852 |  |   | — |  |   | 6,037 |  |   | 5,706 |  |   | — |  |   | 34,595 |  |
| Ending balance: collectively evaluated for impairment | 1,104,029 |  |   | 179,710 |  |   | 1,198,183 |  |   | 1,430,248 |  |   | 628,970 |  |   | 4,541,140 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | For the Three Months Ended September 30, 2016 |
|                         | Commercial,financial,agriculturaland other |   | Real estateconstruction |   | Residentialreal estate |   | Commercialreal estate |   | Loans toindividuals |   | Total |
|                         | (dollars in thousands) |
| Allowance for credit losses: |   |   |   |   |   |   |   |   |   |   |   |
| Beginning Balance            | $ | 46,357 |  |   | $ | 480 |  |   | $ | 2,605 |  |   | $ | 5,862 |  |   | $ | 4,517 |  |   | $ | 59,821 |  |
| Charge-offs                  | (7,163 | ) |   | — |  |   | (374 | ) |   | (10 | ) |   | (1,260 | ) |   | (8,807 | ) |
| Recoveries                   | 63 |  |   | — |  |   | 147 |  |   | 20 |  |   | 82 |  |   | 312 |  |
| Provision (credit)           | 2,666 |  |   | (4 | ) |   | (11 | ) |   | (288 | ) |   | 1,045 |  |   | 3,408 |  |
| Ending Balance               | $ | 41,923 |  |   | $ | 476 |  |   | $ | 2,367 |  |   | $ | 5,584 |  |   | $ | 4,384 |  |   | $ | 54,734 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | For the Three Months Ended, September 30, 2015 |
|                         | Commercial,financial,agriculturaland other |   | Real estateconstruction |   | Residentialreal estate |   | Commercialreal estate |   | Loans toindividuals |   | Total |
|                         | (dollars in thousands) |
| Allowance for credit losses: |   |   |   |   |   |   |   |   |   |   |   |
| Beginning Balance            | $ | 23,755 |  |   | $ | 1,518 |  |   | $ | 2,923 |  |   | $ | 12,227 |  |   | $ | 4,921 |  |   | $ | 45,344 |  |
| Charge-offs                  | (639 | ) |   | — |  |   | (301 | ) |   | (561 | ) |   | (900 | ) |   | (2,401 | ) |
| Recoveries                   | 564 |  |   | — |  |   | 178 |  |   | 33 |  |   | 179 |  |   | 954 |  |
| Provision (credit)           | 3,520 |  |   | 75 |  |   | (124 | ) |   | 703 |  |   | 447 |  |   | 4,621 |  |
| Ending Balance               | $ | 27,200 |  |   | $ | 1,593 |  |   | $ | 2,676 |  |   | $ | 12,402 |  |   | $ | 4,647 |  |   | $ | 48,518 |  |

----

|         |                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 1 – Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange (“NYSE”). Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2 – Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained for identical or comparable assets or liabilities from alternative pricing sources with reasonable levels of price transparency. Level 2 includes Obligations of U.S. Government securities issued by Agencies and Sponsored Enterprises, Obligations of States and Political Subdivisions, corporate securities, FHLB stock, loans held for sale, interest rate derivatives (including interest rate caps, interest rate swaps and risk participation agreements), certain other real estate owned and certain impaired loans. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 3 – Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. If the inputs used to provide the valuation are unobservable and/or there is very little, if any, market activity for the security or similar securities, the securities would be considered Level 3 securities. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The assets included in Level 3 are pooled trust preferred collateralized debt obligations, non-marketable equity investments, certain interest rate derivatives, certain other real estate owned and certain impaired loans. |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |
|                              | Fair Value (dollarsin thousands) |   | ValuationTechnique |   | Unobservable Inputs |   | Range /(weighted average) |
| Pooled Trust Preferred Securities | $ | 35,609 |  |   | Discounted Cash Flow |   | Probability of default |   | 0% - 100% (10.26%) |
|                              |   |   |   |   | Prepayment rates |   | 0% - 72.91% (4.00%) |
|                              |   |   |   |   | Discount rates |   | 5.25% - 12.00% (a) |
| Equities                          | 1,670 |  |   | Par Value |   | N/A |   | N/A |
| Impaired Loans                    | 2,348 |  (b) |   | Reserve study |   | Discount rate |   | 10.00% |
|                              |   |   |   |   | Gas per MCF |   | $1.63 - $3.38 (c) |
|                              |   |   |   |   | Oil per BBL/d |   | $40.97 - $56.16 (c) |
|                              | 7,308 |  (b) |   | Discounted Cash Flow |   | Discount Rate |   | 1.90% - 4.68% |
| Limited Partnership Investments   | 704 |  |   | Par Value |   | N/A |   | N/A |

|     |                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------|
| (a) | Incorporates spread over risk free rate related primarily to credit quality and illiquidity of securities. |

|     |                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | The remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation. |

|     |                                                                                                |
|-----|------------------------------------------------------------------------------------------------|
| (c) | Unobservable inputs are defined as follows: MCF - million cubic feet; BBL/d - barrels per day. |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   | September 30, 2016 |
|                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                                   | (dollars in thousands) |
| Obligations of U.S. Government Agencies:               |   |   |   |   |   |   |   |
| Mortgage-Backed Securities - Residential               | $ | — |  |   | $ | 17,976 |  |   | $ | — |  |   | $ | 17,976 |  |
| Obligations of U.S. Government-Sponsored Enterprises:  |   |   |   |   |   |   |   |
| Mortgage-Backed Securities - Residential               | — |  |   | 704,626 |  |   | — |  |   | 704,626 |  |
| Mortgage-Backed Securities - Commercial                | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Other Government-Sponsored Enterprises                 | — |  |   | 19,307 |  |   | — |  |   | 19,307 |  |
| Obligations of States and Political Subdivisions       | — |  |   | 27,951 |  |   | — |  |   | 27,951 |  |
| Corporate Securities                                   | — |  |   | 6,519 |  |   | — |  |   | 6,519 |  |
| Pooled Trust Preferred Collateralized Debt Obligations | — |  |   | — |  |   | 35,609 |  |   | 35,609 |  |
| Total Debt Securities                                  | — |  |   | 776,380 |  |   | 35,609 |  |   | 811,989 |  |
| Equities                                               | — |  |   | — |  |   | 1,670 |  |   | 1,670 |  |
| Total Securities Available for Sale                    | — |  |   | 776,380 |  |   | 37,279 |  |   | 813,659 |  |
| Other Investments                                      | — |  |   | 54,066 |  |   | — |  |   | 54,066 |  |
| Loans held for sale                                    | — |  |   | 7,855 |  |   | — |  |   | 7,855 |  |
| Other Assets(a)                                        | — |  |   | 19,224 |  |   | 704 |  |   | 19,928 |  |
| Total Assets                                           | $ | — |  |   | $ | 857,525 |  |   | $ | 37,983 |  |   | $ | 895,508 |  |
| Other Liabilities(a)                                   | $ | — |  |   | $ | 18,879 |  |   | $ | — |  |   | $ | 18,879 |  |
| Total Liabilities                                      | $ | — |  |   | $ | 18,879 |  |   | $ | — |  |   | $ | 18,879 |  |

|     |                                                   |
|-----|---------------------------------------------------|
| (a) | Hedging and non-hedging interest rate derivatives |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   | December 31, 2015 |
|                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                                   | (dollars in thousands) |
| Obligations of U.S. Government Agencies:               |   |   |   |   |   |   |   |
| Mortgage-Backed Securities - Residential               | $ | — |  |   | $ | 22,092 |  |   | $ | — |  |   | $ | 22,092 |  |
| Obligations of U.S. Government-Sponsored Enterprises:  |   |   |   |   |   |   |   |
| Mortgage-Backed Securities - Residential               | — |  |   | 777,577 |  |   | — |  |   | 777,577 |  |
| Mortgage-Backed Securities - Commercial                | — |  |   | 28 |  |   | — |  |   | 28 |  |
| Other Government-Sponsored Enterprises                 | — |  |   | 19,118 |  |   | — |  |   | 19,118 |  |
| Obligations of States and Political Subdivisions       | — |  |   | 27,598 |  |   | — |  |   | 27,598 |  |
| Corporate Securities                                   | — |  |   | 2,319 |  |   | — |  |   | 2,319 |  |
| Pooled Trust Preferred Collateralized Debt Obligations | — |  |   | — |  |   | 35,658 |  |   | 35,658 |  |
| Total Debt Securities                                  | — |  |   | 848,732 |  |   | 35,658 |  |   | 884,390 |  |
| Equities                                               | — |  |   | — |  |   | 2,170 |  |   | 2,170 |  |
| Total Securities Available for Sale                    | — |  |   | 848,732 |  |   | 37,828 |  |   | 886,560 |  |
| Other Investments                                      | — |  |   | 62,952 |  |   | — |  |   | 62,952 |  |
| Loans held for sale                                    | — |  |   | 5,763 |  |   | — |  |   | 5,763 |  |
| Other Assets(a)                                        | — |  |   | 11,273 |  |   | — |  |   | 11,273 |  |
| Total Assets                                           | $ | — |  |   | $ | 928,720 |  |   | $ | 37,828 |  |   | $ | 966,548 |  |
| Other Liabilities(a)                                   | $ | — |  |   | $ | 10,829 |  |   | $ | — |  |   | $ | 10,829 |  |
| Total Liabilities                                      | $ | — |  |   | $ | 10,829 |  |   | $ | — |  |   | $ | 10,829 |  |

|     |                                                   |
|-----|---------------------------------------------------|
| (a) | Hedging and non-hedging interest rate derivatives |

----

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        | 2016 |
|                                        | Pooled Trust Preferred Collateralized Debt Obligations |   | Equities |   | OtherAssets |   | Total |
|                                        | (dollars in thousands) |
| Balance, beginning of period                | $ | 35,658 |  |   | $ | 2,170 |  |   | $ | — |  |   | $ | 37,828 |  |
| Total gains or losses                       |   |   |   |   |   |   |   |
| Included in earnings                        | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income      | (19 | ) |   | — |  |   | — |  |   | (19 | ) |
| Purchases, issuances, sales and settlements |   |   |   |   |   |   |   |
| Purchases                                   | — |  |   | 36 |  |   | 168 |  |   | 204 |  |
| Issuances                                   | — |  |   | — |  |   | — |  |   | — |  |
| Sales                                       | — |  |   | — |  |   | — |  |   | — |  |
| Settlements                                 | (30 | ) |   | — |  |   | — |  |   | (30 | ) |
| Transfers from Level 3                      | — |  |   | (536 | ) |   | — |  |   | (536 | ) |
| Transfers into Level 3                      | — |  |   | — |  |   | 536 |  |   | 536 |  |
| Balance, end of period                      | $ | 35,609 |  |   | $ | 1,670 |  |   | $ | 704 |  |   | $ | 37,983 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |
|                                        | 2015 |
|                                        | Pooled Trust Preferred Collateralized Debt Obligations |   | Equities |   | Total |
|                                        | (dollars in thousands) |
| Balance, beginning of period                | $ | 28,999 |  |   | $ | 1,420 |  |   | $ | 30,419 |  |
| Total gains or losses                       |   |   |   |   |   |
| Included in earnings                        | 105 |  |   | — |  |   | 105 |  |
| Included in other comprehensive income      | 7,729 |  |   | — |  |   | 7,729 |  |
| Purchases, issuances, sales and settlements |   |   |   |   |   |
| Purchases                                   | — |  |   | 500 |  |   | 500 |  |
| Issuances                                   | — |  |   | — |  |   | — |  |
| Sales                                       | — |  |   | — |  |   | — |  |
| Settlements                                 | (1,054 | ) |   | — |  |   | (1,054 | ) |
| Transfers into Level 3                      | — |  |   | — |  |   | — |  |
| Balance, end of period                      | $ | 35,779 |  |   | $ | 1,920 |  |   | $ | 37,699 |  |

----

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        | 2016 |
|                                        | Pooled Trust Preferred Collateralized Debt Obligations |   | Equities |   | OtherAssets |   | Total |
|                                        | (dollars in thousands) |
| Balance, beginning of period                | $ | 33,723 |  |   | $ | 1,670 |  |   | $ | 704 |  |   | $ | 36,097 |  |
| Total gains or losses                       |   |   |   |   |   |   |   |
| Included in earnings                        | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income      | 1,886 |  |   | — |  |   | — |  |   | 1,886 |  |
| Purchases, issuances, sales and settlements |   |   |   |   |   |   |   |
| Purchases                                   | — |  |   | — |  |   | — |  |   | — |  |
| Issuances                                   | — |  |   | — |  |   | — |  |   | — |  |
| Sales                                       | — |  |   | — |  |   | — |  |   | — |  |
| Settlements                                 | — |  |   | — |  |   | — |  |   | — |  |
| Transfers from Level 3                      | — |  |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                      | — |  |   | — |  |   | — |  |   | — |  |
| Balance, end of period                      | $ | 35,609 |  |   | $ | 1,670 |  |   | $ | 704 |  |   | $ | 37,983 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |
|                                        | 2015 |
|                                        | Pooled Trust Preferred Collateralized Debt Obligations |   | Equities |   | Total |
|                                        | (dollars in thousands) |
| Balance, beginning of period                | $ | 35,521 |  |   | $ | 1,920 |  |   | 37,441 |  |
| Total gains or losses                       |   |   |   |   |   |
| Included in earnings                        | — |  |   | — |  |   | — |  |
| Included in other comprehensive income      | 258 |  |   | — |  |   | 258 |  |
| Purchases, issuances, sales and settlements |   |   |   |   |   |
| Purchases                                   | — |  |   | — |  |   | — |  |
| Issuances                                   | — |  |   | — |  |   | — |  |
| Sales                                       | — |  |   | — |  |   | — |  |
| Settlements                                 | — |  |   | — |  |   | — |  |
| Transfers into Level 3                      | — |  |   | — |  |   | — |  |
| Balance, end of period                      | $ | 35,779 |  |   | $ | 1,920 |  |   | $ | 37,699 |  |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | September 30, 2016 |
|                    | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                    | (dollars in thousands) |
| Impaired loans          | $ | — |  |   | $ | 28,158 |  |   | $ | 18,493 |  |   | $ | 46,651 |  |
| Other real estate owned | — |  |   | 8,620 |  |   | — |  |   | 8,620 |  |
| Total Assets            | $ | — |  |   | $ | 36,778 |  |   | $ | 18,493 |  |   | $ | 55,271 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | December 31, 2015 |
|                    | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                    | (dollars in thousands) |
| Impaired loans          | $ | — |  |   | $ | 30,979 |  |   | $ | 12,820 |  |   | $ | 43,799 |  |
| Other real estate owned | — |  |   | 10,039 |  |   | 8 |  |   | 10,047 |  |
| Total Assets            | $ | — |  |   | $ | 41,018 |  |   | $ | 12,828 |  |   | $ | 53,846 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | For the Three Months Ended September 30, |   | For the Nine Months Ended September 30, |
|                    | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                    | (dollars in thousands) |
| Impaired loans          | $ | 386 |  |   | $ | (2,838 | ) |   | $ | (13,982 | ) |   | $ | (3,532 | ) |
| Other real estate owned | (114 | ) |   | (78 | ) |   | (331 | ) |   | (1,205 | ) |
| Total losses            | $ | 272 |  |   | $ | (2,916 | ) |   | $ | (14,313 | ) |   | $ | (4,737 | ) |

----

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | September 30, 2016 |
|                          |   |   | Fair Value Measurements Using: |
|                          | CarryingAmount |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |
|                          | (dollars in thousands) |
| Financial assets              |   |   |   |   |   |   |   |   |   |
| Cash and due from banks       | $ | 76,456 |  |   | $ | 76,456 |  |   | $ | 76,456 |  |   | $ | — |  |   | $ | — |  |
| Interest-bearing deposits     | 5,097 |  |   | 5,097 |  |   | 5,097 |  |   | — |  |   | — |  |
| Securities available for sale | 813,659 |  |   | 813,659 |  |   | — |  |   | 776,380 |  |   | 37,279 |  |
| Securities held to maturity   | 389,513 |  |   | 396,994 |  |   | — |  |   | 396,994 |  |   | — |  |
| Other investments             | 54,066 |  |   | 54,066 |  |   | — |  |   | 54,066 |  |   | — |  |
| Loans held for sale           | 7,855 |  |   | 7,855 |  |   | — |  |   | 7,855 |  |   | — |  |
| Loans                         | 4,860,652 |  |   | 4,882,076 |  |   | — |  |   | 28,158 |  |   | 4,853,918 |  |
| Financial liabilities         |   |   |   |   |   |   |   |   |   |
| Deposits                      | 4,458,980 |  |   | 4,461,516 |  |   | — |  |   | 4,461,516 |  |   | — |  |
| Short-term borrowings         | 1,330,327 |  |   | 1,329,740 |  |   | — |  |   | 1,329,740 |  |   | — |  |
| Subordinated debt             | 72,167 |  |   | 63,858 |  |   | — |  |   | — |  |   | 63,858 |  |
| Long-term debt                | 8,892 |  |   | 9,840 |  |   | — |  |   | 9,840 |  |   | — |  |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | December 31, 2015 |
|                          |   |   | Fair Value Measurements Using: |
|                          | CarryingAmount |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |
|                          | (dollars in thousands) |
| Financial assets              |   |   |   |   |   |   |   |   |   |
| Cash and due from banks       | $ | 66,644 |  |   | $ | 66,644 |  |   | $ | 66,644 |  |   | $ | — |  |   | $ | — |  |
| Interest-bearing deposits     | 2,808 |  |   | 2,808 |  |   | 2,808 |  |   | — |  |   | — |  |
| Securities available for sale | 886,560 |  |   | 886,560 |  |   | — |  |   | 848,732 |  |   | 37,828 |  |
| Other investments             | 62,952 |  |   | 62,952 |  |   | — |  |   | 62,952 |  |   | — |  |
| Loans held for sale           | 5,763 |  |   | 5,763 |  |   | — |  |   | 5,763 |  |   | — |  |
| Loans                         | 4,683,750 |  |   | 4,690,852 |  |   | — |  |   | 30,979 |  |   | 4,659,873 |  |
| Financial liabilities         |   |   |   |   |   |   |   |   |   |
| Deposits                      | 4,195,894 |  |   | 4,198,817 |  |   | — |  |   | 4,198,817 |  |   | — |  |
| Short-term borrowings         | 1,510,825 |  |   | 1,510,718 |  |   | — |  |   | 1,510,718 |  |   | — |  |
| Subordinated debt             | 72,167 |  |   | 62,794 |  |   | — |  |   | — |  |   | 62,794 |  |
| Long-term debt                | 9,314 |  |   | 9,834 |  |   | — |  |   | 9,834 |  |   | — |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
|                                                    | September 30, 2016 |   | December 31, 2015 |
|                                                    | (dollars in thousands) |
| Derivatives not Designated as Hedging Instruments       |   |   |   |
| Credit value adjustment                                 | $ | (1,604 | ) |   | $ | (542 | ) |
| Notional Amount:                                        |   |   |   |
| Interest rate derivatives                               | 343,193 |  |   | 276,860 |  |
| Interest rate caps                                      | 20,356 |  |   | 22,793 |  |
| Risk participation agreements                           | 195,075 |  |   | 126,612 |  |
| Sold credit protection on risk participation agreements | (40,536 | ) |   | (20,383 | ) |
| Derivatives Designated as Hedging Instruments           |   |   |   |
| Fair value adjustment                                   | (1,960 | ) |   | 922 |  |
| Notional Amount - Interest rate derivatives             | 200,000 |  |   | 200,000 |  |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                              | For the Three Months Ended September 30, |   | For the Nine Months Ended September 30, |
|                                              | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                              | (dollars in thousands) |
| Non-hedging interest rate derivatives             |   |   |   |   |   |   |   |
| Increase (decrease) in other income               | $ | 470 |  |   | $ | (783 | ) |   | $ | (1,075 | ) |   | $ | (420 | ) |
| Hedging interest rate derivatives                 |   |   |   |   |   |   |   |
| Increase (decrease) in interest and fees on loans | 404 |  |   | (565 | ) |   | 1,258 |  |   | 1,503 |  |
| Increase in other expense                         | 16 |  |   | — |  |   | 57 |  |   | 21 |  |

----

----

----

Table of Contents

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | For the Three Months Ended September 30, |   | For the Nine Months Ended September 30, |
|                                     | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                     | (dollars in thousands, except per share data) |
| Net Income                               | $ | 17,196 |  |   | $ | 12,414 |  |   | $ | 41,676 |  |   | $ | 40,082 |  |
| Per Share Data:                          |   |   |   |   |   |   |   |
| Basic Earnings per Share                 | $ | 0.19 |  |   | $ | 0.14 |  |   | $ | 0.47 |  |   | $ | 0.45 |  |
| Diluted Earnings per Share               | 0.19 |  |   | 0.14 |  |   | 0.47 |  |   | 0.45 |  |
| Cash Dividends Declared per Common Share | 0.07 |  |   | 0.07 |  |   | 0.21 |  |   | 0.21 |  |
| Average Balance:                         |   |   |   |   |   |   |   |
| Total assets                             | $ | 6,679,676 |  |   | $ | 6,343,009 |  |   | $ | 6,668,176 |  |   | $ | 6,354,128 |  |
| Total equity                             | 748,078 |  |   | 718,178 |  |   | 739,347 |  |   | 716,200 |  |
| End of Period Balance:                   |   |   |   |   |   |   |   |
| Net loans                                |   |   |   |   | $ | 4,813,773 |  |   | $ | 4,532,203 |  |
| Total assets                             |   |   |   |   | 6,666,483 |  |   | 6,384,749 |  |
| Total deposits                           |   |   |   |   | 4,458,980 |  |   | 4,161,490 |  |
| Total equity                             |   |   |   |   | 751,787 |  |   | 722,768 |  |
| Key Ratios:                              |   |   |   |   |   |   |   |
| Return on average assets                 | 1.02 | % |   | 0.78 | % |   | 0.83 | % |   | 0.84 | % |
| Return on average equity                 | 9.14 | % |   | 6.86 | % |   | 7.53 | % |   | 7.48 | % |
| Dividends payout ratio                   | 36.84 | % |   | 50.00 | % |   | 44.68 | % |   | 46.67 | % |
| Average equity to average assets ratio   | 11.20 | % |   | 11.32 | % |   | 11.09 | % |   | 11.27 | % |
| Net interest margin                      | 3.29 | % |   | 3.25 | % |   | 3.28 | % |   | 3.29 | % |
| Net loans to deposits ratio              |   |   |   |   | 107.96 | % |   | 108.91 | % |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |
|                                                                      | 2016 | 2015 |
|                                                                      | (dollars in thousands) |
| Interest income per Condensed Consolidated Statements of Income           | $ | 161,682 |  | $ | 151,736 |  |
| Adjustment to fully taxable equivalent basis                              | 2,836 |  | 2,536 |  |
| Interest income adjusted to fully taxable equivalent basis (non-GAAP)     | 164,518 |  | 154,272 |  |
| Interest expense                                                          | 14,166 |  | 11,509 |  |
| Net interest income adjusted to fully taxable equivalent basis (non-GAAP) | $ | 150,352 |  | $ | 142,763 |  |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | 2016 | 2015 |
|                                                            | AverageBalance | Income /Expense (a) | YieldorRate | AverageBalance | Income /Expense (a) | YieldorRate |
|                                                            | (dollars in thousands) |
| Assets                                                          |   |   |   |   |   |   |
| Interest-earning assets:                                        |   |   |   |   |   |   |
| Interest-bearing deposits with banks                            | $ | 5,350 |  | $ | 19 |  | 0.47 | % | $ | 3,993 |  | $ | 7 |  | 0.23 | % |
| Tax-free investment securities                                  | 61,968 |  | 1,711 |  | 3.69 |  | 34,374 |  | 994 |  | 3.87 |  |
| Taxable investment securities                                   | 1,244,828 |  | 23,162 |  | 2.49 |  | 1,260,030 |  | 22,749 |  | 2.41 |  |
| Loans, net of unearned income (b)(c)                            | 4,806,061 |  | 139,626 |  | 3.88 |  | 4,509,628 |  | 130,522 |  | 3.87 |  |
| Total interest-earning assets                                   | 6,118,207 |  | 164,518 |  | 3.59 |  | 5,808,025 |  | 154,272 |  | 3.55 |  |
| Noninterest-earning assets:                                     |   |   |   |   |   |   |
| Cash                                                            | 68,860 |  |   |   | 66,249 |  |   |   |
| Allowance for credit losses                                     | (56,905 | ) |   |   | (49,617 | ) |   |   |
| Other assets                                                    | 538,014 |  |   |   | 529,471 |  |   |   |
| Total noninterest-earning assets                                | 549,969 |  |   |   | 546,103 |  |   |   |
| Total Assets                                                    | $ | 6,668,176 |  |   |   | $ | 6,354,128 |  |   |   |
| Liabilities and Shareholders’ Equity                      |   |   |   |   |   |   |
| Interest-bearing liabilities:                                   |   |   |   |   |   |   |
| Interest-bearing demand deposits (d)                            | $ | 735,297 |  | $ | 355 |  | 0.06 | % | $ | 653,737 |  | $ | 172 |  | 0.04 | % |
| Savings deposits (d)                                            | 1,887,277 |  | 2,524 |  | 0.18 |  | 1,857,077 |  | 1,872 |  | 0.13 |  |
| Time deposits                                                   | 586,638 |  | 2,763 |  | 0.63 |  | 714,005 |  | 3,743 |  | 0.70 |  |
| Short-term borrowings                                           | 1,447,207 |  | 6,322 |  | 0.58 |  | 1,193,122 |  | 3,353 |  | 0.38 |  |
| Long-term debt                                                  | 81,268 |  | 2,202 |  | 3.62 |  | 126,896 |  | 2,369 |  | 2.50 |  |
| Total interest-bearing liabilities                              | 4,737,687 |  | 14,166 |  | 0.40 |  | 4,544,837 |  | 11,509 |  | 0.34 |  |
| Noninterest-bearing liabilities and shareholders’ equity: |   |   |   |   |   |   |
| Noninterest-bearing demand deposits (d)                         | 1,129,511 |  |   |   | 1,038,016 |  |   |   |
| Other liabilities                                               | 61,631 |  |   |   | 55,075 |  |   |   |
| Shareholders’ equity                                      | 739,347 |  |   |   | 716,200 |  |   |   |
| Total Noninterest-Bearing Funding Sources                       | 1,930,489 |  |   |   | 1,809,291 |  |   |   |
| Total Liabilities and Shareholders’ Equity                | $ | 6,668,176 |  |   |   | $ | 6,354,128 |  |   |   |
| Net Interest Income and Net Yield on Interest-Earning Assets    |   | $ | 150,352 |  | 3.28 | % |   | $ | 142,763 |  | 3.29 | % |

|     |                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Income on interest-earning assets has been computed on a fully taxable equivalent basis using the 35% federal income tax statutory rate. |

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (b) | Loan balances include held for sale and nonaccrual loans. Income on nonaccrual loans is accounted for on the cash basis. |

|     |                                        |
|-----|----------------------------------------|
| (c) | Loan income includes loan fees earned. |

|     |                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d) | Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits, which were made for regulatory purposes. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   | Analysis of Year-to-Year Changes in Net Interest Income |
|                                 |   | TotalChange |   | Change Due ToVolume |   | Change Due ToRate (a) |
|                                 |   | (dollars in thousands) |
| Interest-earning assets:             |   |   |   |   |   |   |
| Interest-bearing deposits with banks |   | $ | 12 |  |   | $ | 2 |  |   | $ | 10 |  |
| Tax-free investment securities       |   | 717 |  |   | 799 |  |   | (82 | ) |
| Taxable investment securities        |   | 413 |  |   | (274 | ) |   | 687 |  |
| Loans                                |   | 9,104 |  |   | 8,580 |  |   | 524 |  |
| Total interest income (b)            |   | 10,246 |  |   | 9,107 |  |   | 1,139 |  |
| Interest-bearing liabilities:        |   |   |   |   |   |   |
| Interest-bearing demand deposits     |   | 183 |  |   | 24 |  |   | 159 |  |
| Savings deposits                     |   | 652 |  |   | 29 |  |   | 623 |  |
| Time deposits                        |   | (980 | ) |   | (667 | ) |   | (313 | ) |
| Short-term borrowings                |   | 2,969 |  |   | 722 |  |   | 2,247 |  |
| Long-term debt                       |   | (167 | ) |   | (853 | ) |   | 686 |  |
| Total interest expense               |   | 2,657 |  |   | (745 | ) |   | 3,402 |  |
| Net interest income                  |   | $ | 7,589 |  |   | $ | 9,852 |  |   | $ | (2,263 | ) |

|     |                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|
| (a) | Changes in interest income or expense not arising solely as a result of volume or rate variances are allocated to rate variances. |

|     |                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Changes in interest income have been computed on a fully taxable equivalent basis using the 35% federal income tax statutory rate. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                          | 2016 |   | 2015 |
|                                          | Dollars | Percentage |   | Dollars | Percentage |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | $ | 23,935 |  | 118 |  % |   | $ | 5,230 |  | 59 |  % |
| Real estate construction                      | (638 | ) | (3 | ) |   | (554 | ) | (6 | ) |
| Residential real estate                       | 330 |  | 2 |  |   | (54 | ) | (1 | ) |
| Commercial real estate                        | (6,725 | ) | (33 | ) |   | 1,584 |  | 18 |  |
| Loans to individuals                          | 3,404 |  | 16 |  |   | 2,612 |  | 30 |  |
| Total                                         | $ | 20,306 |  | 100 |  % |   | $ | 8,818 |  | 100 |  % |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          |   | September 30, 2016 |   | September 30, 2015 |   | December 31, 2015 |
|                                          |   | (dollars in thousands) |
| Balance, beginning of period                  |   | $ | 50,812 |  |   | $ | 52,051 |  |   | $ | 52,051 |  |
| Loans charged off:                            |   |   |   |   |   |   |
| Commercial, financial, agricultural and other |   | 13,308 |  |   | 8,579 |  |   | 11,429 |  |
| Real estate construction                      |   | — |  |   | — |  |   | 8 |  |
| Residential real estate                       |   | 976 |  |   | 1,351 |  |   | 1,539 |  |
| Commercial real estate                        |   | 418 |  |   | 1,249 |  |   | 1,538 |  |
| Loans to individuals                          |   | 3,751 |  |   | 3,283 |  |   | 4,354 |  |
| Total loans charged off                       |   | 18,453 |  |   | 14,462 |  |   | 18,868 |  |
| Recoveries of loans previously charged off:   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other |   | 261 |  |   | 922 |  |   | 1,097 |  |
| Real estate construction                      |   | 227 |  |   | 84 |  |   | 84 |  |
| Residential real estate                       |   | 407 |  |   | 417 |  |   | 587 |  |
| Commercial real estate                        |   | 803 |  |   | 186 |  |   | 229 |  |
| Loans to individuals                          |   | 371 |  |   | 502 |  |   | 684 |  |
| Total recoveries                              |   | 2,069 |  |   | 2,111 |  |   | 2,681 |  |
| Net credit losses                             |   | 16,384 |  |   | 12,351 |  |   | 16,187 |  |
| Provision charged to expense                  |   | 20,306 |  |   | 8,818 |  |   | 14,948 |  |
| Balance, end of period                        |   | $ | 54,734 |  |   | $ | 48,518 |  |   | $ | 50,812 |  |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       |   | 2016 |   | 2015 |   | $ Change |   | % Change |
|                                       |   | (dollars in thousands) |
| Noninterest Income:                        |   |   |   |   |   |   |   |   |
| Trust income                               |   | $ | 4,098 |  |   | $ | 4,511 |  |   | $ | (413 | ) |   | (9 | )% |
| Service charges on deposit accounts        |   | 11,528 |  |   | 11,271 |  |   | 257 |  |   | 2 |  |
| Insurance and retail brokerage commissions |   | 6,048 |  |   | 6,536 |  |   | (488 | ) |   | (7 | ) |
| Income from bank owned life insurance      |   | 3,957 |  |   | 4,089 |  |   | (132 | ) |   | (3 | ) |
| Card-related interchange income            |   | 11,039 |  |   | 10,784 |  |   | 255 |  |   | 2 |  |
| Swap fee income                            |   | 1,985 |  |   | 727 |  |   | 1,258 |  |   | 173 |  |
| Other income                               |   | 4,761 |  |   | 5,136 |  |   | (375 | ) |   | (7 | ) |
| Subtotal                                   |   | 43,416 |  |   | 43,054 |  |   | 362 |  |   | 1 |  |
| Net securities gains                       |   | 28 |  |   | 125 |  |   | (97 | ) |   | (78 | ) |
| Gain on sale of mortgage loans             |   | 2,850 |  |   | 1,856 |  |   | 994 |  |   | 54 |  |
| Gain on sale of other loans and assets     |   | 1,048 |  |   | 1,428 |  |   | (380 | ) |   | (27 | ) |
| Derivatives mark to market                 |   | (1,075 | ) |   | (420 | ) |   | (655 | ) |   | 156 |  |
| Total noninterest income                   |   | $ | 46,267 |  |   | $ | 46,043 |  |   | $ | 224 |  |   | — |  % |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   | 2016 |   | 2015 |   | $ Change |   | % Change |
|                                 |   | (dollars in thousands) |
| Noninterest Expense:                 |   |   |   |   |   |   |   |   |
| Salaries and employee benefits       |   | $ | 62,212 |  |   | $ | 66,339 |  |   | $ | (4,127 | ) |   | (6 | )% |
| Net occupancy expense                |   | 9,843 |  |   | 10,518 |  |   | (675 | ) |   | (6 | ) |
| Furniture and equipment expense      |   | 8,596 |  |   | 7,980 |  |   | 616 |  |   | 8 |  |
| Data processing expense              |   | 5,379 |  |   | 4,505 |  |   | 874 |  |   | 19 |  |
| Advertising and promotion expense    |   | 1,940 |  |   | 1,946 |  |   | (6 | ) |   | — |  |
| Pennsylvania shares tax expense      |   | 2,764 |  |   | 3,617 |  |   | (853 | ) |   | (24 | ) |
| Intangible amortization              |   | 318 |  |   | 469 |  |   | (151 | ) |   | (32 | ) |
| Collection and repossession expense  |   | 1,803 |  |   | 2,229 |  |   | (426 | ) |   | (19 | ) |
| Other professional fees and services |   | 2,866 |  |   | 2,877 |  |   | (11 | ) |   | — |  |
| FDIC insurance                       |   | 3,205 |  |   | 3,047 |  |   | 158 |  |   | 5 |  |
| Other operating expenses             |   | 13,163 |  |   | 13,516 |  |   | (353 | ) |   | (3 | ) |
| Subtotal                             |   | 112,089 |  |   | 117,043 |  |   | (4,954 | ) |   | (4 | ) |
| Loss on sale or write-down of assets |   | 629 |  |   | 2,037 |  |   | (1,408 | ) |   | (69 | ) |
| Merger and acquisition related       |   | 358 |  |   | 28 |  |   | 330 |  |   | 1,179 |  % |
| Litigation and operational losses    |   | 1,174 |  |   | 1,637 |  |   | (463 | ) |   | 28 |  % |
| Total noninterest expense            |   | $ | 114,250 |  |   | $ | 120,745 |  |   | $ | (6,495 | ) |   | (5 | )% |

----

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |
|                                                                      | 2016 |   | 2015 |
|                                                                      | (dollars in thousands) |
| Interest income per Condensed Consolidated Statements of Income           | $ | 54,479 |  |   | $ | 50,501 |  |
| Adjustment to fully taxable equivalent basis                              | 951 |  |   | 883 |  |
| Interest income adjusted to fully taxable equivalent basis (non-GAAP)     | 55,430 |  |   | 51,384 |  |
| Interest expense                                                          | 4,861 |  |   | 3,816 |  |
| Net interest income adjusted to fully taxable equivalent basis (non-GAAP) | $ | 50,569 |  |   | $ | 47,568 |  |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | 2016 | 2015 |
|                                                            | AverageBalance | Income /Expense (a) | YieldorRate | AverageBalance | Income /Expense (a) | YieldorRate |
|                                                            | (dollars in thousands) |
| Assets                                                          |   |   |   |   |   |   |
| Interest-earning assets:                                        |   |   |   |   |   |   |
| Interest-bearing deposits with banks                            | $ | 5,853 |  | $ | 8 |  | 0.54 | % | $ | 3,221 |  | $ | 2 |  | 0.25 | % |
| Tax-free investment securities                                  | 64,098 |  | 585 |  | 3.63 |  | 41,671 |  | 401 |  | 3.82 |  |
| Taxable investment securities                                   | 1,214,542 |  | 7,434 |  | 2.44 |  | 1,203,603 |  | 7,155 |  | 2.36 |  |
| Loans, net of unearned income (b)(c)                            | 4,839,206 |  | 47,403 |  | 3.90 |  | 4,550,882 |  | 43,826 |  | 3.82 |  |
| Total interest-earning assets                                   | 6,123,699 |  | 55,430 |  | 3.60 |  | 5,799,377 |  | 51,384 |  | 3.52 |  |
| Noninterest-earning assets:                                     |   |   |   |   |   |   |
| Cash                                                            | 71,099 |  |   |   | 66,685 |  |   |   |
| Allowance for credit losses                                     | (61,264 | ) |   |   | (47,152 | ) |   |   |
| Other assets                                                    | 546,142 |  |   |   | 524,099 |  |   |   |
| Total noninterest-earning assets                                | 555,977 |  |   |   | 543,632 |  |   |   |
| Total Assets                                                    | $ | 6,679,676 |  |   |   | $ | 6,343,009 |  |   |   |
| Liabilities and Shareholders’ Equity                      |   |   |   |   |   |   |
| Interest-bearing liabilities:                                   |   |   |   |   |   |   |
| Interest-bearing demand deposits (d)                            | $ | 748,932 |  | $ | 135 |  | 0.07 | % | $ | 656,008 |  | $ | 66 |  | 0.04 | % |
| Savings deposits (d)                                            | 1,903,630 |  | 1,034 |  | 0.22 |  | 1,848,508 |  | 647 |  | 0.14 |  |
| Time deposits                                                   | 586,470 |  | 956 |  | 0.65 |  | 659,445 |  | 1,044 |  | 0.63 |  |
| Short-term borrowings                                           | 1,391,766 |  | 1,987 |  | 0.57 |  | 1,232,795 |  | 1,279 |  | 0.41 |  |
| Long-term debt                                                  | 81,128 |  | 749 |  | 3.67 |  | 111,285 |  | 780 |  | 2.78 |  |
| Total interest-bearing liabilities                              | 4,711,926 |  | 4,861 |  | 0.41 |  | 4,508,041 |  | 3,816 |  | 0.34 |  |
| Noninterest-bearing liabilities and shareholders’ equity: |   |   |   |   |   |   |
| Noninterest-bearing demand deposits (d)                         | 1,153,945 |  |   |   | 1,065,204 |  |   |   |
| Other liabilities                                               | 65,727 |  |   |   | 51,586 |  |   |   |
| Shareholders’ equity                                      | 748,078 |  |   |   | 718,178 |  |   |   |
| Total noninterest-bearing funding sources                       | 1,967,750 |  |   |   | 1,834,968 |  |   |   |
| Total Liabilities and Shareholders’ Equity                | $ | 6,679,676 |  |   |   | $ | 6,343,009 |  |   |   |
| Net Interest Income and Net Yield on Interest-Earning Assets    |   | $ | 50,569 |  | 3.29 | % |   | $ | 47,568 |  | 3.25 | % |

|     |                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Income on interest-earning assets has been computed on a fully taxable equivalent basis using the 35% federal income tax statutory rate. |

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (b) | Loan balances include held for sale and nonaccrual loans. Income on nonaccrual loans is accounted for on the cash basis. |

|     |                                        |
|-----|----------------------------------------|
| (c) | Loan income includes loan fees earned. |

|     |                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d) | Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits, which were made for regulatory purposes. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   | Analysis of Year-to-Year Changes in Net Interest Income |
|                                 |   | TotalChange |   | Change Due ToVolume |   | Change Due ToRate (a) |
|                                 |   | (dollars in thousands) |
| Interest-earning assets:             |   |   |   |   |   |   |
| Interest-bearing deposits with banks |   | $ | 6 |  |   | $ | 2 |  |   | $ | 4 |  |
| Tax-free investment securities       |   | 184 |  |   | 216 |  |   | (32 | ) |
| Taxable investment securities        |   | 279 |  |   | 65 |  |   | 214 |  |
| Loans                                |   | 3,577 |  |   | 2,776 |  |   | 801 |  |
| Total interest income (b)            |   | 4,046 |  |   | 3,059 |  |   | 987 |  |
| Interest-bearing liabilities:        |   |   |   |   |   |   |
| Interest-bearing demand deposits     |   | 69 |  |   | 9 |  |   | 60 |  |
| Savings deposits                     |   | 387 |  |   | 19 |  |   | 368 |  |
| Time deposits                        |   | (88 | ) |   | (116 | ) |   | 28 |  |
| Short-term borrowings                |   | 708 |  |   | 164 |  |   | 544 |  |
| Long-term debt                       |   | (31 | ) |   | (211 | ) |   | 180 |  |
| Total interest expense               |   | 1,045 |  |   | (135 | ) |   | 1,180 |  |
| Net interest income                  |   | $ | 3,001 |  |   | $ | 3,194 |  |   | $ | (193 | ) |

|     |                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|
| (a) | Changes in interest income or expense not arising solely as a result of volume or rate variances are allocated to rate variances. |

|     |                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Changes in interest income have been computed on a fully taxable equivalent basis using the 35% federal income tax statutory rate. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                          | 2016 |   | 2015 |
|                                          | Dollars | Percentage |   | Dollars | Percentage |
|                                          | (dollars in thousands) |
| Commercial, financial, agricultural and other | $ | 2,666 |  | 78 |  % |   | $ | 3,520 |  | 76 |  % |
| Real estate construction                      | (4 | ) | — |  |   | 75 |  | 2 |  |
| Residential real estate                       | (11 | ) | — |  |   | (124 | ) | (3 | ) |
| Commercial real estate                        | (288 | ) | (8 | ) |   | 703 |  | 15 |  |
| Loans to individuals                          | 1,045 |  | 30 |  |   | 447 |  | 10 |  |
| Total                                         | $ | 3,408 |  | 100 |  % |   | $ | 4,621 |  | 100 |  % |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          |   | September 30, 2016 |   | September 30, 2015 |   | December 31, 2015 |
|                                          |   | (dollars in thousands) |
| Balance, beginning of period                  |   | $ | 59,821 |  |   | $ | 45,344 |  |   | $ | 52,051 |  |
| Loans charged off:                            |   |   |   |   |   |   |
| Commercial, financial, agricultural and other |   | 7,163 |  |   | 639 |  |   | 11,429 |  |
| Real estate construction                      |   | — |  |   | — |  |   | 8 |  |
| Residential real estate                       |   | 374 |  |   | 301 |  |   | 1,539 |  |
| Commercial real estate                        |   | 10 |  |   | 561 |  |   | 1,538 |  |
| Loans to individuals                          |   | 1,260 |  |   | 900 |  |   | 4,354 |  |
| Total loans charged off                       |   | 8,807 |  |   | 2,401 |  |   | 18,868 |  |
| Recoveries of loans previously charged off:   |   |   |   |   |   |   |
| Commercial, financial, agricultural and other |   | 63 |  |   | 564 |  |   | 1,097 |  |
| Real estate construction                      |   | — |  |   | — |  |   | 84 |  |
| Residential real estate                       |   | 147 |  |   | 178 |  |   | 587 |  |
| Commercial real estate                        |   | 20 |  |   | 33 |  |   | 229 |  |
| Loans to individuals                          |   | 82 |  |   | 179 |  |   | 684 |  |
| Total recoveries                              |   | 312 |  |   | 954 |  |   | 2,681 |  |
| Net credit losses                             |   | 8,495 |  |   | 1,447 |  |   | 16,187 |  |
| Provision charged to expense                  |   | 3,408 |  |   | 4,621 |  |   | 14,948 |  |
| Balance, end of period                        |   | $ | 54,734 |  |   | $ | 48,518 |  |   | $ | 50,812 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       |   | 2016 |   | 2015 |   | $ Change |   | % Change |
|                                       |   | (dollars in thousands) |
| Noninterest Income:                        |   |   |   |   |   |   |   |   |
| Trust income                               |   | $ | 1,523 |  |   | $ | 1,614 |  |   | $ | (91 | ) |   | (6 | )% |
| Service charges on deposit accounts        |   | 3,975 |  |   | 4,081 |  |   | (106 | ) |   | (3 | ) |
| Insurance and retail brokerage commissions |   | 2,104 |  |   | 2,163 |  |   | (59 | ) |   | (3 | ) |
| Income from bank owned life insurance      |   | 1,350 |  |   | 1,357 |  |   | (7 | ) |   | (1 | ) |
| Card related interchange income            |   | 3,698 |  |   | 3,637 |  |   | 61 |  |   | 2 |  |
| Swap fee income                            |   | 725 |  |   | 84 |  |   | 641 |  |   | 763 |  |
| Other income                               |   | 1,527 |  |   | 1,712 |  |   | (185 | ) |   | (11 | ) |
| Subtotal                                   |   | 14,902 |  |   | 14,648 |  |   | 254 |  |   | 2 |  |
| Net securities gains                       |   | — |  |   | — |  |   | — |  |   | N/A |  |
| Gain on sale of mortgage loans             |   | 1,235 |  |   | 832 |  |   | 403 |  |   | 48 |  |
| Gain on sale of other loans and assets     |   | 387 |  |   | 808 |  |   | (421 | ) |   | (52 | ) |
| Derivatives mark to market                 |   | 470 |  |   | (783 | ) |   | 1,253 |  |   | (160 | ) |
| Total noninterest income                   |   | $ | 16,994 |  |   | $ | 15,505 |  |   | $ | 1,489 |  |   | 10 |  % |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   | 2016 |   | 2015 |   | $ Change |   | % Change |
|                                 |   | (dollars in thousands) |
| Noninterest Expense:                 |   |   |   |   |   |   |   |   |
| Salaries and employee benefits       |   | $ | 20,647 |  |   | $ | 22,446 |  |   | $ | (1,799 | ) |   | (8 | )% |
| Net occupancy expense                |   | 3,176 |  |   | 3,291 |  |   | (115 | ) |   | (3 | ) |
| Furniture and equipment expense      |   | 2,847 |  |   | 2,670 |  |   | 177 |  |   | 7 |  |
| Data processing expense              |   | 1,832 |  |   | 1,558 |  |   | 274 |  |   | 18 |  |
| Advertising and promotion expense    |   | 750 |  |   | 789 |  |   | (39 | ) |   | (5 | ) |
| Pennsylvania shares tax expense      |   | 914 |  |   | 1,713 |  |   | (799 | ) |   | (47 | ) |
| Intangible amortization              |   | 67 |  |   | 157 |  |   | (90 | ) |   | (57 | ) |
| Collection and repossession expense  |   | 760 |  |   | 801 |  |   | (41 | ) |   | (5 | ) |
| Other professional fees and services |   | 1,202 |  |   | 1,002 |  |   | 200 |  |   | 20 |  |
| FDIC insurance                       |   | 1,105 |  |   | 963 |  |   | 142 |  |   | 15 |  |
| Other operating expenses             |   | 4,795 |  |   | 4,385 |  |   | 410 |  |   | 9 |  |
| Subtotal                             |   | 38,095 |  |   | 39,775 |  |   | (1,680 | ) |   | (4 | ) |
| Loss on sale or write-down of assets |   | 188 |  |   | 140 |  |   | 48 |  |   | 34 |  |
| Merger and acquisition related       |   | 118 |  |   | 28 |  |   | 90 |  |   | 321 |  |
| Litigation and operational losses    |   | 295 |  |   | 314 |  |   | (19 | ) |   | (6 | ) |
| Total noninterest expense            |   | $ | 38,696 |  |   | $ | 40,257 |  |   | $ | (1,561 | ) |   | (4 | )% |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |
|                                |   | September 30, 2016 |   | December 31, 2015 |
|                                |   | (dollars in thousands) |
| Noninterest-bearing demand deposits |   | $ | 1,241,627 |  |   | $ | 1,116,689 |  |
| Interest-bearing demand deposits    |   | 87,507 |  |   | 86,365 |  |
| Savings deposits                    |   | 2,552,754 |  |   | 2,390,607 |  |
| Time deposits                       |   | 577,092 |  |   | 602,233 |  |
| Total                               |   | $ | 4,458,980 |  |   | $ | 4,195,894 |  |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       |   | September 30, 2016 |
|                                       |   | 0-90 Days |   | 91-180Days |   | 181-365Days |   | Cumulative0-365 Days |   | Over 1 YearThrough 5Years |   | Over 5Years |
|                                       |   | (dollars in thousands) |
| Loans                                      |   | $ | 2,485,254 |  |   | $ | 165,618 |  |   | $ | 327,440 |  |   | $ | 2,978,312 |  |   | $ | 1,466,263 |  |   | $ | 383,392 |  |
| Investments                                |   | 115,805 |  |   | 50,053 |  |   | 103,688 |  |   | 269,546 |  |   | 594,317 |  |   | 378,881 |  |
| Other interest-earning assets              |   | 5,097 |  |   | — |  |   | — |  |   | 5,097 |  |   | — |  |   | — |  |
| Total interest-sensitive assets (ISA)      |   | 2,606,156 |  |   | 215,671 |  |   | 431,128 |  |   | 3,252,955 |  |   | 2,060,580 |  |   | 762,273 |  |
| Certificates of deposit                    |   | 92,091 |  |   | 86,658 |  |   | 131,660 |  |   | 310,409 |  |   | 262,342 |  |   | 4,341 |  |
| Other deposits                             |   | 2,640,261 |  |   | — |  |   | — |  |   | 2,640,261 |  |   | — |  |   | — |  |
| Borrowings                                 |   | 1,402,637 |  |   | 145 |  |   | 293 |  |   | 1,403,075 |  |   | 2,559 |  |   | 5,752 |  |
| Total interest-sensitive liabilities (ISL) |   | 4,134,989 |  |   | 86,803 |  |   | 131,953 |  |   | 4,353,745 |  |   | 264,901 |  |   | 10,093 |  |
| Gap                                        |   | $ | (1,528,833 | ) |   | $ | 128,868 |  |   | $ | 299,175 |  |   | $ | (1,100,790 | ) |   | $ | 1,795,679 |  |   | $ | 752,180 |  |
| ISA/ISL                                    |   | 0.63 |  |   | 2.48 |  |   | 3.27 |  |   | 0.75 |  |   | 7.78 |  |   | 75.52 |  |
| Gap/Total assets                           |   | 22.93 | % |   | 1.93 | % |   | 4.49 | % |   | 16.51 | % |   | 26.94 | % |   | 11.28 | % |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       |   | December 31, 2015 |
|                                       |   | 0-90 Days |   | 91-180Days |   | 181-365Days |   | Cumulative0-365 Days |   | Over 1 YearThrough 5Years |   | Over 5Years |
|                                       |   | (dollars in thousands) |
| Loans                                      |   | $ | 2,371,092 |  |   | $ | 184,323 |  |   | $ | 315,162 |  |   | $ | 2,870,577 |  |   | $ | 1,439,199 |  |   | $ | 343,538 |  |
| Investments                                |   | 115,292 |  |   | 50,950 |  |   | 102,357 |  |   | 268,599 |  |   | 597,263 |  |   | 454,200 |  |
| Other interest-earning assets              |   | 2,808 |  |   | — |  |   | — |  |   | 2,808 |  |   | — |  |   | — |  |
| Total interest-sensitive assets (ISA)      |   | 2,489,192 |  |   | 235,273 |  |   | 417,519 |  |   | 3,141,984 |  |   | 2,036,462 |  |   | 797,738 |  |
| Certificates of deposit                    |   | 125,403 |  |   | 89,522 |  |   | 139,133 |  |   | 354,058 |  |   | 244,173 |  |   | 4,000 |  |
| Other deposits                             |   | 2,476,973 |  |   | — |  |   | — |  |   | 2,476,973 |  |   | — |  |   | — |  |
| Borrowings                                 |   | 1,583,132 |  |   | 140 |  |   | 285 |  |   | 1,583,557 |  |   | 2,487 |  |   | 6,263 |  |
| Total interest-sensitive liabilities (ISL) |   | 4,185,508 |  |   | 89,662 |  |   | 139,418 |  |   | 4,414,588 |  |   | 246,660 |  |   | 10,263 |  |
| Gap                                        |   | $ | (1,696,316 | ) |   | $ | 145,611 |  |   | $ | 278,101 |  |   | $ | (1,272,604 | ) |   | $ | 1,789,802 |  |   | $ | 787,475 |  |
| ISA/ISL                                    |   | 0.59 |  |   | 2.62 |  |   | 2.99 |  |   | 0.71 |  |   | 8.26 |  |   | 77.73 |  |
| Gap/Total assets                           |   | 25.83 | % |   | 2.22 | % |   | 4.23 | % |   | 19.38 | % |   | 27.25 | % |   | 11.99 | % |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |   | Net interest income change (12 months) |
|                        |   | -200 |   | -100 |   | +100 |   | +200 |
|                        |   | (dollars in thousands) |
| September 30, 2016 ($) |   | $ | (6,928 | ) |   | $ | (2,661 | ) |   | $ | 2,363 |  |   | $ | 4,715 |  |
| September 30, 2016 (%) |   | (3.53 | )% |   | (1.35 | )% |   | 1.20 | % |   | 2.40 | % |
|                        |   |   |   |   |   |   |   |   |
| December 31, 2015 ($)  |   | $ | (7,293 | ) |   | $ | (2,438 | ) |   | $ | 916 |  |   | $ | 1,900 |  |
| December 31, 2015 (%)  |   | (3.74 | )% |   | (1.25 | )% |   | 0.47 | % |   | 0.97 | % |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |   | Net interest income change (12 months) |
|                        |   | -200 |   | -100 |   | +100 |   | +200 |
|                        |   | (dollars in thousands) |
| September 30, 2016 ($) |   | $ | (11,342 | ) |   | $ | (7,637 | ) |   | $ | 3,273 |  |   | $ | 6,416 |  |
| September 30, 2016 (%) |   | (5.77 | )% |   | (3.89 | )% |   | 1.67 | % |   | 3.27 | % |
|                        |   |   |   |   |   |   |   |   |
| December 31, 2015 ($)  |   | $ | (11,405 | ) |   | $ | (5,132 | ) |   | $ | 1,842 |  |   | $ | 3,658 |  |
| December 31, 2015 (%)  |   | (5.85 | )% |   | (2.63 | )% |   | 0.94 | % |   | 1.88 | % |

----

----

----

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                           |   | September 30, |   |   |   | December 31, 2015 |   |   |
|                                                                           |   | 2016 |   |   |   | 2015 |   |   |   |
|                                                                           |   | (dollars in thousands) |   |   |
| Nonperforming Loans:                                                           |   |   |   |   |
| Loans on nonaccrual basis                                                      |   | $ | 27,817 |  |   |    |   | $ | 20,220 |  |   |  |   | $ | 24,345 |  |   |    |
| Troubled debt restructured loans on nonaccrual basis                           |   | 12,723 |  |   |    |   | 8,583 |  |   |    |   | 12,360 |  |   |    |
| Troubled debt restructured loans on accrual basis                              |   | 14,286 |  |   |    |   | 12,024 |  |   |    |   | 14,139 |  |   |    |
| Total nonperforming loans                                                      |   | $ | 54,826 |  |   |    |   | $ | 40,827 |  |   |    |   | $ | 50,844 |  |   |    |
| Loans past due 30 to 90 days and still accruing                                |   | $ | 8,942 |  |   |   |   | $ | 12,482 |  |   |   |   | $ | 10,476 |  |   |   |
| Loans past due in excess of 90 days and still accruing                         |   | $ | 2,343 |  |   |    |   | $ | 2,054 |  |   |    |   | $ | 2,455 |  |   |    |
| Other real estate owned                                                        |   | $ | 7,686 |  |   |    |   | $ | 10,542 |  |   |    |   | $ | 9,398 |  |   |    |
| Loans held for sale at end of period                                           |   | $ | 7,855 |  |   |   |   | $ | 4,986 |  |   |   |   | $ | 5,763 |  |   |   |
| Loans outstanding at end of period                                             |   | $ | 4,860,652 |  |   |    |   | $ | 4,575,735 |  |   |  |   | $ | 4,683,750 |  |   |    |
| Average loans outstanding                                                      |   | $ | 4,806,061 |  |   | (a)  |   | $ | 4,509,628 |  |   | (a)  |   | $ | 4,553,634 |  |   | (b)  |
| Nonperforming loans as a percentage of total loans                             |   | 1.13 | % |   |   |   | 0.89 | % |   |   |   | 1.09 | % |   |   |
| Provision for credit losses                                                    |   | $ | 20,306 |  |   | (a)  |   | $ | 8,818 |  |   | (a)  |   | $ | 14,948 |  |   | (b)  |
| Allowance for credit losses                                                    |   | $ | 54,734 |  |   |    |   | $ | 48,518 |  |   |    |   | $ | 50,812 |  |   |    |
| Net charge-offs                                                                |   | $ | 16,384 |  |   | (a)  |   | $ | 12,351 |  |   | (a)  |   | $ | 16,187 |  |   | (b)  |
| Net charge-offs as a percentage of average loans outstanding (annualized)      |   | 0.46 | % |   |   |   | 0.37 | % |   |   |   | 0.36 | % |   |   |
| Provision for credit losses as a percentage of net charge-offs                 |   | 123.94 | % |   | (a)  |   | 71.40 | % |   | (a)  |   | 92.35 | % |   | (b)  |
| Allowance for credit losses as a percentage of end-of-period loans outstanding |   | 1.13 | % |   |   |   | 1.06 | % |   |   |   | 1.08 | % |   |   |
| Allowance for credit losses as a percentage of nonperforming loans (c)         |   | 99.83 | % |   |   |   | 118.84 | % |   |   |   | 99.94 | % |   |   |

|     |                                  |
|-----|----------------------------------|
| (a) | For the nine-month period ended. |

|     |                                    |
|-----|------------------------------------|
| (b) | For the twelve-month period ended. |

|     |                                                     |
|-----|-----------------------------------------------------|
| (c) | Does not include nonperforming loans held for sale. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          |   | September 30, 2016 |   | December 31, 2015 |
|                                          |   | Amount |   | % |   | Amount |   | % |
|                                          |   | (dollars in thousands) |
| Commercial, financial, agricultural and other |   | $ | 1,207,447 |  |   | 25 | % |   | $ | 1,150,906 |  |   | 25 | % |
| Real estate construction                      |   | 229,375 |  |   | 5 |  |   | 220,736 |  |   | 5 |  |
| Residential real estate                       |   | 1,185,759 |  |   | 24 |  |   | 1,224,465 |  |   | 26 |  |
| Commercial real estate                        |   | 1,683,015 |  |   | 35 |  |   | 1,479,000 |  |   | 31 |  |
| Loans to individuals                          |   | 555,056 |  |   | 11 |  |   | 608,643 |  |   | 13 |  |
| Total loans and leases net of unearned income |   | $ | 4,860,652 |  |   | 100 | % |   | $ | 4,683,750 |  |   | 100 | % |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          |   | For the Nine Months Ended September 30, 2016 |   | As of September 30, 2016 |
|                                          |   | NetCharge-offs |   | % ofTotal NetCharge-offs |   | Net Charge-offs as a % ofAverageLoans (annualized) |   | NonperformingLoans |   | % of TotalNonperformingLoans |   | NonperformingLoans as a % ofTotal Loans |
|                                          |   | (dollars in thousands) |
| Commercial, financial, agricultural and other |   | $ | 13,047 |  |   | 79.63 |  % |   | 0.36 |  % |   | $ | 36,186 |  |   | 66.00 | % |   | 0.74 | % |
| Real estate construction                      |   | (227 | ) |   | (1.39 | ) |   | (0.01 | ) |   | — |  |   | — |  |   | — |  |
| Residential real estate                       |   | 569 |  |   | 3.48 |  |   | 0.03 |  |   | 11,681 |  |   | 21.31 |  |   | 0.24 |  |
| Commercial real estate                        |   | (385 | ) |   | (2.35 | ) |   | (0.01 | ) |   | 6,582 |  |   | 12.00 |  |   | 0.14 |  |
| Loans to individuals                          |   | 3,380 |  |   | 20.63 |  |   | 0.09 |  |   | 377 |  |   | 0.69 |  |   | 0.01 |  |
| Total loans, net of unearned income           |   | $ | 16,384 |  |   | 100.00 |  % |   | 0.46 |  % |   | $ | 54,826 |  |   | 100.00 | % |   | 1.13 | % |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         | Actual |   | Minimum Capital Required - Basel III Phase-In Schedule |   | Minimum Capital Required - Basel III Fully Phased-In |   | Required to be Considered WellCapitalized |
|                                         | CapitalAmount |   | Ratio |   | CapitalAmount |   | Ratio |   | CapitalAmount |   | Ratio |   | CapitalAmount |   | Ratio |
|                                         | (dollars in thousands) |
| Total Capital to Risk Weighted Assets        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Commonwealth Financial Corporation     | $ | 708,808 |  |   | 12.64 | % |   | $ | 483,826 |  |   | 8.625 | % |   | $ | 589,005 |  |   | 10.50 | % |   | $ | 560,957 |  |   | 10.00 | % |
| First Commonwealth Bank                      | 640,868 |  |   | 11.47 |  |   | 481,935 |  |   | 8.625 |  |   | 586,703 |  |   | 10.50 |  |   | 558,765 |  |   | 10.00 |  |
| Tier I Capital to Risk Weighted Assets       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Commonwealth Financial Corporation     | $ | 650,038 |  |   | 11.59 | % |   | $ | 371,634 |  |   | 6.625 | % |   | $ | 476,814 |  |   | 8.50 | % |   | $ | 448,766 |  |   | 8.00 | % |
| First Commonwealth Bank                      | 582,098 |  |   | 10.42 |  |   | 370,182 |  |   | 6.625 |  |   | 474,950 |  |   | 8.50 |  |   | 447,012 |  |   | 8.00 |  |
| Tier I Capital to Average Assets             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Commonwealth Financial Corporation     | $ | 650,038 |  |   | 9.98 | % |   | $ | 260,588 |  |   | 4.000 | % |   | $ | 260,588 |  |   | 4.00 | % |   | $ | 325,735 |  |   | 5.00 | % |
| First Commonwealth Bank                      | 582,098 |  |   | 8.95 |  |   | 260,111 |  |   | 4.000 |  |   | 260,111 |  |   | 4.00 |  |   | 325,138 |  |   | 5.00 |  |
| Common Equity Tier I to Risk Weighted Assets |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Commonwealth Financial Corporation     | $ | 580,038 |  |   | 10.34 | % |   | $ | 287,491 |  |   | 5.125 | % |   | $ | 392,670 |  |   | 7.00 | % |   | $ | 364,622 |  |   | 6.50 | % |
| First Commonwealth Bank                      | 582,098 |  |   | 10.42 |  |   | 286,367 |  |   | 5.125 |  |   | 391,135 |  |   | 7.00 |  |   | 363,197 |  |   | 6.50 |  |

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Table of Contents

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Table of Contents

|                   |                   |
|-------------------|-------------------|
| ITEM 1.  | LEGAL PROCEEDINGS |

|               |              |
|---------------|--------------|
| ITEM 1A. | RISK FACTORS |

|              |                                                             |
|--------------|-------------------------------------------------------------|
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |

|                                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |
| Month Ending:                                                                                                                                                                                           | Total Number ofSharesPurchased |   | Average PricePaid per Share(or Unit) |   | Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor Programs |   | Maximum Numberof Shares thatMay Yet BePurchased Underthe Plans orPrograms* |
| July 31, 2016                                                                                                                                                                                      | 0 |  |   | $ | 0.00 |  |   | 0 |  |   | 2,550,790 |  |
| August 31, 2016                                                                                                                                                                                    | 918 |  |   | 9.88 |  |   | — |  |   | 2,410,884 |  |
| September 30, 2016                                                                                                                                                                                 | 0 |  |   | 0.00 |  |   | 0 |  |   | 2,439,556 |  |
|                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total                                                                                                                                                                                                   | 918 |  |   | $ | 9.88 |  |   | — |  |   |   |
|                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| * Remaining number of shares approved under the Plan is based on the market value of the Company's common stock of $9.65 at July 31, 2016, $10.21 at August 31, 2016, and $10.09 at September 30, 2016. |

|              |                                 |
|--------------|---------------------------------|
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |

|              |                         |
|--------------|-------------------------|
| ITEM 4. | MINE SAFETY DISCLOSURES |

|              |                   |
|--------------|-------------------|
| ITEM 5. | OTHER INFORMATION |

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|               |
|---------------|
|               |  |  |  |  |
| ExhibitNumber |    | Description |    | Incorporated by Reference to |
|          |   |   |
| 10.1          |   | Employment Agreement dated September 19, 2016 between First Commonwealth Financial Corporation and Brian G. Karrip |   | Filed herewith |
|          |   |   |   |   |
| 10.2          |   | Change of Control Agreement dated September 19, 2016 between First Commonwealth Financial Corporation and Brian G. Karrip |   | Filed herewith |
|          |   |   |   |   |
| 10.3          |   | Restricted Stock Agreement dated September 19, 2016 between First Commonwealth Financial Corporation and Brian G. Karrip |   | Filed herewith |
|          |   |   |   |   |
| 31.1          |    | Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |    | Filed herewith |
|          |   |   |
| 31.2          |    | Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |    | Filed herewith |
|          |   |   |
| 32.1          |    | Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |    | Filed herewith |
|          |   |   |
| 32.2          |    | Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |    | Filed herewith |
|          |   |   |
| 101           |    | The following materials from First Commonwealth Financial Corporation’s Quarterly Report on Form 10-Q, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income and Comprehensive Income, (iii) the Condensed Consolidated Statements of Changes in Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) the Notes to Unaudited Condensed Consolidated Financial Statements. |    | Filed herewith |

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|                              |
|------------------------------|
|                              |  |  |
| DATED: November 9, 2016 |   | /s/ T. Michael Price |
|                         |   | T. Michael PricePresident and Chief Executive Officer |
|                         |   |
| DATED: November 9, 2016 |   | /s/ James R. Reske |
|                         |   | James R. ReskeExecutive Vice President, Chief Financial Officer and Treasurer |