2nd Quarter Earnings Highlights         July 26, 2018                            1
 Forward-Looking Statement  This presentation contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These forward-looking statements include, but are not limited to, statements relating to First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward- looking statements, including, among other things: possible changes in economic and business conditions; the existence or exacerbation of general geopolitical instability and uncertainty; the ability of First Merchants to integrate recent acquisitions and attract new customers; possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity, credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants undertakes no obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this presentation or press release. In addition, the company’s past results of operations do not necessarily indicate its anticipated future results.                                            NON-GAAP FINANCIAL MEASURES These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, First Merchants Corporation has provided reconciliations within the slides, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure.                                                                                                               2
 2nd Quarter 2018 Financial Highlights    $39.6 Million of Net Income, a 64.2% Increase over 2Q2017    Earnings Per Share of $ .80, a 40.4% Increase over 2Q2017    Total Assets of $9.7 Billion Grew by 24.7% over 2Q2017    Annualized Organic Loan & Deposit Growth of Approximately 10%    1.63% ROAA; 11.94% ROAE    49.32% Efficiency Ratio    Broad-based Asset Quality Improvement                                                        3
 Mark K. Hardwick  EXECUTIVE VICE PRESIDENT  CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER                                                        4
 Total Assets ($ in Millions)                              2016          2017           Q1-’18       Q2-’18   1. Investments             $1,305        $1,561          $1,544       $1,620   2. Loans                    5,143         6,758           6,906        7,083   3. Allowance                 (66)          (75)            (76)         (78)   4. Goodwill & Intangibles    259           477             475           473   5. BOLI                      202           224             222           223   6. Other                     369           422             402           414   7. Total Assets            $7,212        $9,367          $9,473       $9,735      Annualized Asset Growth               29.9%                          7.9% 1           1 Annualized from December 31, 2017                                                                                5
 Loan and Yield Detail       (as of 6/30/2018)                                                                               QTD Yield     =        5.12% Commercial                      Agricultural Agricultural             Construction Land &                         Public  Real Estate                       Land    Production                         YTD Yield     =        4.99%            Land Development                         Finance/Other  Non-Owner                         3.4%       1.3%                            Total Loans   =   $7.1 Billion                 10.1%                                Commercial  Occupied                                               5.5%   24.0%                                                  Residential                                                           Mortgage            Variable      =   $4.8 Billion                                                           13.7%              Fixed         =   $2.3 Billion                                                              Home                                                              Equity                                                              7.3%                                     Prime                                                                      LIBOR                            18%                                                                      36%                                     Other                                                             Other                                            Variable   Commercial                                             Consumer                                            13%    Real Estate                                             1.2%     Owner-    Occupied                                 Commercial &       10.1%                                   Industrial                                    23.4%                                                                                          Fixed                                                                                         33%                                                                                                              6
 Investment Portfolio   (as of 6/30/2018)     Tax-Exempt                                                                 Mortgage-Backed     Municipals                                                                   Securities       46%                                                                     24%                                                                                  $1.6 Billion Portfolio                                                                                Modified duration of 5.7 years                                                                                Tax equivalent yield of 3.47%                                                                                Net unrealized loss of $16.4 Million                                                             Collateralized                                                               Mortgage                                                              Obligations                                                                26%        Corporate        U. S. Agencies        Obligations          2%           2%                                                                                                             7
 Total Liabilities and Capital   ($ in Millions)                                       2016         2017          Q1-’18      Q2-’18   1.  Customer Non-Maturity Deposits $4,428       $5,741          $5,850      $6,033   2.  Customer Time Deposits            747        1,051           1,137       1,158   3.  Brokered Deposits                 381          381            341          313   4.  Borrowings                        572          701            644          706   5.  Other Liabilities                  60           57             55           52   6.  Hybrid Capital                    122          133            133          133   7.  Common Equity                     902        1,303           1,313       1,340   8.  Total Liabilities and Capital  $7,212       $9,367          $9,473      $9,735                                                                                     8
 Deposit Detail     (as of 6/30/2018)                                                                          QTD Cost      =          .81%                                                                          YTD Cost      =          .74%                                                                          Total         =    $7.5 Billion                          Certificates &                   Certificates &                         Time Deposits of                  Time Deposits of                            >$100,000                        <$100,000         Savings                               7%                                8%        Deposits                                                     Brokered           28%                                                        Deposits                                                                       4%                                                           Demand                                                          Deposits                                                           53%                                                                                                         9
 Capital Ratios                                                                                            Total Risk-Based Capital Ratio  (Target = 12.50%)                                                                                                              Common Equity Tier 1 Capital Ratio  (Target = 10.00%)              16.00%                                                                       Tangible Common Equity Ratio  (TCE) (Target = 9.00%)               15.00%       14.67%                                      14.18%       14.21%     14.24%                                                                          14.01%                                                                                                                         13.81%              14.00%                                                                  13.76%      13.69%     13.69%               13.00%               12.00%                           11.39%                                                                          11.11%                                       11.05%      11.10%     11.16%                                                     11.21%                                                                                      11.03%      11.00%     11.04%              11.00%               10.00%                           9.43%       9.48%                  9.50%        9.68%                                                                                      9.39%                                                   9.24%                                         9.30%       9.32%         9.36%                9.00%                 8.00%                 7.00%                           2Q16        3Q16        4Q16        1Q17       2Q17        3Q17        4Q17       1Q18        2Q18                                                                                                                                        10
 Net Interest Margin                                               Q2 - '16     Q3 - '16    Q4 - '16    Q1 - '17     Q2 - '17    Q3 - '17    Q4 - '17    Q1 - '18     Q2 - '18   Net Interest Income - FTE ($millions)     $        59.2 $        61.1 $        62.1 $        64.9 $        67.2 $        78.9 $        83.5 $        82.5 $        87.2    Fair Value Accretion                      $          3.2 $          3.8 $          2.9 $          4.3 $          2.3 $          3.2 $          4.1 $          3.2 $          3.8    Tax Equivalent Yield on Earning Assets        4.30%       4.37%       4.32%        4.42%       4.44%       4.56%       4.67%        4.57% 1     4.74% 2  Interest Expense/Average Earning Assets       0.44%       0.43%       0.42%        0.44%       0.49%       0.53%       0.57%        0.65%       0.75%  Net Interest Margin                           3.86%       3.94%       3.90%        3.98%       3.95%       4.03%       4.10%        3.92%       3.99%  Fair Value Accretion Effect                   0.21%       0.24%       0.18%        0.26%       0.14%       0.17%       0.20%        0.15%       0.18%                                                                                                                                                        2 $90                                                                                                            4.10%                            3.99%        4.20%                                                                                                4.03% $86                                                           3.98%                                                                   1                              3.94%                                             3.95%                                            3.92%                        4.00% $82                                          3.90%             3.86% $78                                                                                                                                                          3.80% $74 $70                                                                                                                                                          3.60% $66 $62                                                                                                                                                          3.40% $58                                                                                                                                                          3.20% $54 $50                                                                                                                                                          3.00%           Q2 - '16         Q3 - '16        Q4 - '16         Q1 - '17         Q2 - '17        Q3 - '17         Q4 - '17        Q1 - '18         Q2 - '18                                         Net Interest Income - FTE ($millions)                                     Net Interest Margin                                                                                                                      1 Reflects 13 bps impact of Tax Cuts and Jobs Act                                                                                                                       2 Reflects 12 bps impact of Tax Cuts and Jobs Act                                                                                                                                                              11
 Non-Interest Income      ($ in Millions)                        2016      2017      Q1-’18    Q2-’18   1. Service Charges on Deposit Accounts   $17.8     $ 18.7      $ 4.8     $ 5.0   2. Wealth Management Fees                 12.6      14.7         3.8      3.6   3. Card Payment Fees                      15.0      16.1         4.6      4.5   4. Cash Surrender Value of Life Ins        4.3       6.6         1.2      1.0   5. Gains on Sales of Mortgage Loans        7.1       7.6         1.8      1.6   6. Gains on Sales of Securities            3.4       2.6         1.6      1.1   7. Other                                   5.0       4.7         1.8      1.4   8. Total Non-Interest Income             $65.2     $71.0       $19.6     $18.2                                                                                12
 Non-Interest Expense ($ in Millions)                                       2016        2017       Q1-’18    Q2-’18   1. Salary & Benefits               $102.6      $119.8      $  32.2   $  32.2   2. Premises & Equipment              29.5        30.1        8.4        7.9   3. Intangible Asset Amortization      3.9         5.6        1.7        1.7   4. Professional & Other Outside Services 6.5     12.8        1.5        1.8   5. OREO/Credit-Related Expense        2.9         1.9        0.4        0.4   6. FDIC Expense                       3.0         2.6        0.7        0.7   7. Outside Data Processing            9.2        12.2        3.0        3.4   8. Marketing                          3.0         3.7        0.9        1.5   9. Other                             16.7        16.9        4.9        3.9                                                       1   10. Total Non-Interest Expense     $177.3     $ 205.6      $ 53.7    $ 53.5      1 2017 includes acquisition-related expenses of $12.2 million                                                                                13
 Earnings    ($ in Millions)                     2016       2017        Q1-’18   Q2-’18 1. Net Interest Income                $226.5    $ 277.3       $ 79.9   $  84.6 2. Provision for Loan Losses           (5.7)      (9.1)         (2.5)    (1.7) 3. Net Interest Income after Provision 220.8     268.2          77.4     82.9 4. Non-Interest Income                  65.2      71.0          19.6     18.2 5. Non-Interest Expense               (177.3)   (205.6)        (53.7)   (53.5) 6. Income before Income Taxes          108.7     133.6          43.3     47.6 7. Income Tax Expense                 (27.6)     (37.5)1        (6.6)    (8.0) 8. Net Income Avail. for Distribution $  81.1    $ 96.1       $ 36.7   $  39.6                                                        2 9. EPS                                $  1.98    $ 2.12       $ 0.74   $  0.80 10. Efficiency Ratio                 56.51%     54.56%       51.33%    49.32%    1 2017 includes $5.1 million of additional tax expense due to revaluing deferred taxes as a result of the Tax Cuts and Jobs Act    2 Acquisition-related expenses, the impact of tax reform, and pension settlement accounting reduced EPS by $0.30 for 2017                                                                              14
 Per Share Results  2017                       Q1        Q2       Q3      Q4      Total  1. Earnings Per Share    $    .56 $    .57  $    .50  $   .49 $   2.12  2. Dividends             $    .15 $    .18 $    .18 $   .18 $     .69  3. Tangible Book Value  $16.49   $16.97   $16.62   $16.96   2018                       Q1        Q2       Q3      Q4      Total  1. Earnings Per Share    $   .74  $     .80    –       –    $   1.54  2. Dividends             $ .18    $     .22    –       –    $  .40  3. Tangible Book Value  $17.14    $17.71       –       –                                                                    15
 Dividends and Tangible Book Value             Quarterly Dividends                              Tangible Book Value                                         0.22 0.22                                                                                            $17.71 0.20                                                                                  $16.96                                     .18                                          $15.85 0.18                                                                        $14.68 0.16                            .15                                     $13.65                             .14                                    $12.17 0.14                                                          $10.95                        .11 0.12                                                 $9.21 $9.64 0.10                    .08 0.08 0.06           .05 0.04      .03 0.02  .01 0.00           1.90% Forward Dividend Yield                    Compound Annual Growth Rate of 9.11%       Equals 26.0% Dividend Payout Ratio                                                                                                    16
 John J. Martin  EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER                                                      17
 Loan Portfolio Trends                                                                                    Change                      ($ in Millions)                                            Linked Quarter                                                2016    2017     Q1-'18  Q2-'18      $      %    Const. Commitments:                    1. Commercial & Industrial $  1,195 $  1,494 $  1,554 $  1,658 $      104 6.7%       Billions Util. 2Q ‘18 $1.244 58%  2. Construction, Land and    1Q ‘18 $1.151 51%  2017 $1.253 49%     Land Development           419    612        590    715      125    21.2%  2016  $.928 45%                    3. CRE Non-Owner Occupied  1,272   1,618     1,760   1,700     (60)   (3.4%)                    4. CRE Owner Occupied        531    700       709     714        5     0.7%                    5. Agricultural Production    80    122        98      89       (9)   (9.2%)                    6. Agricultural Land         149    244        245    239       (6)   (2.4%)                    7. Residential Mortgage      742    970        953    968       15     1.6%                                                                                                  8. Home Equity               419    514        511    519        8     1.6%                                                                                                  9. Public Finance/Other                       Commercial                 258    397        398    389       (9)   (2.3%)                   10. Other Consumer             78     87        88      92        4     4.5%                   11. Total Loans            $ 5,143 $  6,758  $  6,906 $  7,083 $      177 2.6%                   12. Construction Concentration1 52%   60%       57%    67%                   13. Investment RE Concentration1 211% 219%     226%   227%                       1As a % of Risk Based Capital                                                                                                                                  18
 Asset Quality Summary                                                                                    Change            ($ in Millions)                                                     Linked Quarter                                             2016      2017    Q1-'18  Q2-'18       $      %            1. Non-Accrual Loans             $   30.0 $   28.7 $    27.5 $   20.1 $    (7.4) (26.9%)           2. Other Real Estate                     9.0       10.4          9.7         9.1        (0.6) (6.2%)           3. Renegotiated Loans                    4.7         1.0          0.6         0.5        (0.1) (16.7%)           4. 90+ Days Delinquent Loans             0.1         0.9          0.7         0.2        (0.5) (71.4%)           5. Total NPAs & 90+ Days Delinquent $   43.8 $   41.0 $    38.5 $   29.9 $    (8.6) (22.3%)          6. Total NPAs & 90+ Days/Loans & ORE 0.9%   0.6%      0.6%     0.4%           7. Classified Assets             $ 174.1 $ 153.1   $ 178.4  $ 166.3  $  (12.1) (6.8%)           8. Specific Reserves             $      0.9 $      1.6 $      1.3 $      0.5 $    (0.8) (61.5%)                                                                                                  19
 Non-Performing Asset Reconciliation            ($ in Millions)                        Q3-'17   Q4-'17  Q1-'18   Q2-'18           1. Beginning Balance NPAs & 90+ Days Delinquent $   40.3 $   45.2 $  41.0 $  38.5             Non-Accrual          2.    Add: New Non-Accruals                12.7      4.9     4.8     2.7          3.    Less:  To Accrual/Payoff/Renegotiated (6.1)   (7.3)    (4.1)   (6.3)          4.    Less:  To OREO                        (0.6)   (0.2)    (0.1)   (0.1)          5.    Less:  Charge-offs                    (1.1)   (1.0)    (1.8)   (3.7)          6. Increase / (Decrease):  Non-Accrual Loans 4.9    (3.6)    (1.2)   (7.4)             Other Real Estate Owned (ORE)          7.    Add:  New ORE Properties              0.6      0.2     0.1     0.1          8.    Less: ORE Sold                        (0.3)   (1.5)    (0.7)   (0.5)           9.    Less: ORE Losses (write-downs)       (0.3)   (0.2)    (0.1)   (0.2)         10. Increase / (Decrease): ORE               0.0     (1.5)    (0.7)   (0.6)          11. Increase / (Decrease): 90+ Days Delinquent (0.2)  0.5     (0.2)   (0.5)         12. Increase / (Decrease): Renegotiated Loans 0.2     0.4     (0.4)   (0.1)          13. Total NPAs & 90+ Days Delinquent Change  4.9     (4.2)    (2.5)   (8.6)          14. Ending Balance NPAs & 90+ Days Delinquent $   45.2 $   41.0 $  38.5 $  29.9                                                                                           20
 ALLL and Fair Value Summary    ($ in Millions)                               Q3-'17   Q4-'17    Q1-'18    Q2-'18  1. Beginning Allowance for Loan Losses (ALLL) $      70.5 $     73.4 $      75.0 $     76.4   2. Net Charge-offs (Recoveries)                  (0.8)      0.2       1.1      0.6  3. Provision Expense                              2.1       1.8       2.5      1.7  4. Ending Allowance for Loan Losses (ALLL)    $     73.4 $     75.0 $     76.4 $     77.5    5. ALLL/Non-Accrual Loans                      227.4%    261.2%    277.9%   385.0%  6. ALLL/Non-Purchased Loans                     1.44%     1.36%     1.32%    1.28%   7. ALLL/Loans                                  1.13%     1.11%     1.11%    1.09%   8. Fair Value Adjustment (FVA)                $     50.4 $     46.3 $     43.1 $     37.2   9. Total ALLL plus FVA                             123.8      121.3      119.5       114.7 10. Purchased Loans plus FVA                    1,445.8   1,304.7   1,179.8  1,059.1  11. FVA/Purchased Loans plus FVA                 3.49%     3.55%     3.65%    3.51%                                                                                         21
 Portfolio Summary       Strong quarterly loan growth of $177 million, led by Construction and C&I loans       Non-Accrual Loans and ORE both declined for the quarter, Total NPAs & 90+ Days        remained low at 0.4% of Loans and ORE       Classified Assets decreased $12.1 million to $166.3 million       Quarterly Net charge-offs were $0.6 million or .03% annualized with provision        expense of $1.7 million        ALLL to Loans of 1.09% and to Non-Purchased Loans of 1.28%.  ALLL to        Non-accruals at 385%.                                                                      22
 Michael C. Rechin  PRESIDENT AND CHIEF EXECUTIVE OFFICER                                                      23
 FMC Strategy and Tactics Overview   Looking Forward . . .     Manage market presence and our core banking business.  Continue organic       growth protocol.      Optimize our retail and commercial deposit strategy... products and pricing.      Capitalize on talent opportunities from performance and preferred employer       recognitions      Build out of specialty finance businesses in sponsor finance, public finance,       asset-based lending, and loan syndications      Assess M&A opportunities and operating strategies as we prepare to cross the       $10 Billion asset level          “Responsive, Knowledgeable, High-Performing”                                                                   24
 Contact Information                        First Merchants Corporation common stock is                         traded on the NASDAQ Global Select Market                                under the symbol FRME.                          Additional information can be found at                             www.FIRSTMERCHANTS.COM                                 Investor inquiries:                                 Nicole M. Weaver                                 Investor Relations                               Telephone: 765.521.7619                             nweaver@firstmerchants.com                                                           25
 Appendix                      26
 Appendix –                         Non-GAAP Reconciliation  CAPITAL RATIOS (dollars in thousands):                                                            2Q16        3Q16        4Q16         1Q17        2Q17        3Q17        4Q17        1Q18        2Q18 Total Risk-Based Capital Ratio Total Stockholders' Equity (GAAP)                           887,550         900,865         901,657         929,470     1,035,116     1,283,120     1,303,463     1,313,073     1,340,328  Adjust for Accumulated Other Comprehensive (Income) Loss              (7,035)              (3,924)            13,581               3,722              (1,384)               6,358               3,534            21,725            24,868  Less:  Preferred Stock                                               (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)  Add: Qualifying Capital Securities                             55,296            55,355            55,415            55,474            55,534            65,864            65,919            65,975            66,030  Less: Tier 1 Capital Deductions                                  (1,828)              (1,440)                  (376)                     (80)                  (166)                     -                     -                     -                     -  Less: Disallowed Goodwill and Intangible Assets            (249,932)        (249,541)        (249,104)        (250,493)        (300,307)        (462,080)        (464,066)        (467,518)        (466,063)  Less: Disallowed Deferred Tax Assets                             (2,743)              (2,161)                  (564)                  (320)                  (665)                     -                     -              (2,594)              (2,104)       Total Tier 1 Capital (Regulatory)              $     681,183 $     699,029 $     720,484 $     737,648 $     788,003 $     893,137 $     908,725 $     930,536 $     962,934  Qualifying Subordinated Debentures                             65,000            65,000            65,000            65,000            65,000            65,000            65,000            65,000            65,000  Allowance for Loan Losses includible in Tier 2 Capital            62,186            63,456            66,037            68,225            70,471            73,354            75,032            76,420            77,543       Total Risk-Based Capital (Regulatory)          $     808,369 $     827,485 $     851,521 $     870,873 $     923,474 $ 1,031,491 $ 1,048,757 $ 1,071,956 $ 1,105,477        Net Risk-Weighted Assets (Regulatory)          $ 5,511,557 $ 5,836,806 $ 5,993,381 $ 6,114,112  $ 6,592,710 $ 7,497,321 $ 7,660,604 $ 7,831,727 $ 8,002,666  Total Risk-Based Capital Ratio (Regulatory)             14.67%      14.18%       14.21%      14.24%      14.01%      13.76%      13.69%       13.69%      13.81%  Common Equity Tier 1 Capital Ratio Total Tier 1 Capital (Regulatory)                   $     681,183 $     699,029 $     720,484 $     737,648 $     788,003 $     893,137 $     908,725 $     930,536 $     962,934  Less: Qualified Capital Securities                            (55,296)           (55,355)           (55,415)           (55,474)           (55,534)           (65,864)           (65,919)           (65,975)           (66,030)  Add:  Additional Tier 1 Capital Deductions                        1,828               1,440                    376                       80                    166                     -                     -                     -                     -       Common Equity Tier 1 Capital (Regulatory)      $     627,715 $     645,114 $     665,445 $     682,254 $     732,635 $     827,273 $     842,806 $     864,561 $     896,904        Net Risk-Weighted Assets (Regulatory)          $ 5,511,557 $ 5,836,806 $ 5,993,381 $ 6,114,112  $ 6,592,710 $ 7,497,321 $ 7,660,604 $ 7,831,727 $ 8,002,666  Common Equity Tier 1 Capital Ratio (Regulatory)         11.39%      11.05%       11.10%      11.16%      11.11%      11.03%      11.00%       11.04%      11.21%  1  Includes net unrealized gains or losses on securities available for sale, net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting   guidance for defined benefit and other postretirement plans.                                                                                                                                                            27
 Appendix –                                       Non-GAAP Reconciliation    TANGIBLE COMMON EQUITY RATIO  (dollars in thousands):                                                                                 2Q16             3Q16            4Q16             1Q17             2Q17             3Q17            4Q17             1Q18             2Q18  Total Stockholders' Equity (GAAP)                                      $      887,550   $     900,865   $     901,657    $     929,470    $ 1,035,116     $ 1,283,120      $ 1,303,463      $ 1,313,073      $ 1,340,328   Less: Preferred Stock                                                                    (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)   Less: Intangible Assets                                                       (260,822)        (259,844)        (258,866)        (257,963)        (309,686)        (478,558)        (476,503)        (474,777)        (473,059)         Tangible Common Equity (non-GAAP)                                $      626,603   $     640,896   $     642,666    $     671,382    $     725,305    $     804,437   $     826,835    $     838,171    $     867,144   Total Assets (GAAP)                                                    $ 6,906,418     $ 7,022,352      $ 7,211,611      $ 7,326,193      $ 7,805,029     $ 9,049,403      $ 9,367,478      $ 9,472,796      $ 9,734,715   Less:  Intangible Assets                                                      (260,822)        (259,844)        (258,866)        (257,963)        (309,686)        (478,558)        (476,503)        (474,777)        (473,059)         Tangible Assets (non-GAAP)                                       $ 6,645,596     $ 6,762,508      $ 6,952,745      $ 7,068,230      $ 7,495,343     $ 8,570,845      $ 8,890,975      $ 8,998,019      $ 9,261,656   Tangible Common Equity Ratio (non-GAAP)                                       9.43%            9.48%            9.24%           9.50%            9.68%            9.39%            9.30%           9.32%            9.36%   TANGIBLE COMMON EQUITY PER SHARE (dollars in thousands):                                                           4Q10          4Q11             4Q12         4Q13          4Q14        4Q15         4Q16         1Q17        2Q17         3Q17        4Q17         1Q18         2Q18 Total Stockholders' Equity (GAAP)                     $        454,408 $        514,467 $       552,236 $       634,923 $       726,827 $     850,509 $     901,657 $     929,470 $ 1,035,116 $ 1,283,120 $ 1,303,463 $ 1,313,073 $ 1,340,328  Less: Preferred Stock                                             (67,880)             (90,783)             (90,908)                    (125)                    (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)                  (125)  Less: Intangible Assets                                        (154,019)          (150,471)          (149,529)          (202,767)          (218,755)        (259,764)        (258,866)        (257,963)        (309,686)        (478,558)        (476,503)        (474,777)        (473,059)  Tax Benefit                                                            2,907                  2,224                 2,249                 4,973                 6,085               6,278               5,930               5,659               6,941            12,510               6,788               6,043               5,690      Tangible Common Equity, Net of Tax (non-GAAP)     $        235,416 $        275,437 $       314,048 $       437,004 $       514,032 $     596,898 $     648,596 0 $     677,041 $     732,246 $     816,947 $     833,623 $     844,214 $     872,834      Shares Outstanding                                    25,574,251    28,559,707    28,692,616    35,921,761    37,669,948  40,664,258  40,912,697  41,047,543  43,153,509  49,140,594  49,158,238  49,243,096  49,280,188  Tangible Common Equity per Share (non-GAAP)           $                 9.21 $                 9.64 $             10.95 $             12.17 $             13.65 $           14.68 $           15.85 $           16.49 $           16.97 $           16.62 $           16.96 $           17.14 $           17.71                                                                                                                                                                                                                      28
 Appendix –                          Non-GAAP Reconciliation   EFFICIENCY RATIO (dollars in thousands):                                                                    2016        2017         1Q18          2Q18  Non Interest Expense (GAAP)                                $       177,359 $    205,556 $          53,687 $          53,504   Less:  Intangible Asset Amortization                                      (3,910)            (5,647)                (1,726)                (1,718)   Less:  OREO and Foreclosure Expenses                                      (2,877)            (1,903)                    (402)                    (362)   Adjusted Non Interest Expense (non-GAAP)                             170,572        198,006              51,559              51,424   Net Interest Income (GAAP)                                           226,473        277,284              79,916              84,571   Plus:  Fully Taxable Equivalent Adjustment                              13,541           17,270                 2,584                 2,625   Net Interest Income on a Fully Taxable Equivalent Basis (non-GAA          240,014        294,554              82,500              87,196   Non Interest Income (GAAP)                                              65,203           71,009              19,561              18,191   Less:  Investment Securities Gains (Losses)                               (3,389)            (2,631)                (1,609)                (1,122)   Adjusted Non Interest Income (non-GAAP)                                 61,814           68,378              17,952              17,069   Adjusted Revenue (non-GAAP)                                          301,828        362,932           100,452           104,265   Efficiency Ratio (non-GAAP)                                     56.51%      54.56%        51.33%       49.32%    FORWARD DIVIDEND YIELD                                                                                  2Q18   Most recent quarter's dividend per share                                 $             0.22    Most recent quarter's dividend per share - Annualized                    $             0.88     Stock Price at 6/30/18                                                   $          46.40       Forward Dividend Yield                                                      1.90%    DIVIDEND PAYOUT RATIO                                                                               2018 YTD   Dividends per share                                                      $             0.40    Earnings Per Share                                                       $             1.54       Dividend Payout Ratio                                                       26.0%                                                                                                                                                           29
 Appendix –                                Non-GAAP Reconciliation   CONSTRUCTION AND INVESTMENT REAL ESTATE CONCENTRATIONS (dollars in thousands):                                                                      2016              2017             1Q18             2Q18   Total Risk-Based Capital (Subsidiary Bank Only)   Total Stockholders' Equity (GAAP)                        $                973,641 $            1,404,303 $            1,414,109 $            1,432,722    Adjust for Accumulated Other Comprehensive (Income) Loss  1                          9,701                               763                       19,231                       22,589    Less:  Preferred Stock                                                               (125)                             (125)                             (125)                             (125)    Less: Tier 1 Capital Deductions                                                         -                                -                                -                                -    Less: Disallowed Goodwill and Intangible Assets                           (248,656)                   (463,618)                   (467,070)                   (465,616)    Less: Disallowed Deferred Tax Assets                                                    -                                -                         (2,234)                         (1,862)         Total Tier 1 Capital (Regulatory)                                      734,561                    941,323                    963,911                    987,708    Allowance for Loan Losses includible in Tier 2 Capital                         66,037                       75,032                       76,420                       77,543         Total Risk-Based Capital (Regulatory)               $                800,598 $            1,016,355 $            1,040,331 $            1,065,251     Construction, Land and Land Development Loans            $                418,703 $                612,219 $                590,093 $                714,866    Concentration as a % of the Bank's Risk-Based Capital               52%              60%               57%              67%   Construction, Land and Land Development Loans            $                418,703 $                612,219 $                590,093 $                714,866    Investment Real Estate Loans                                           1,272,415                1,617,943                1,760,226                1,699,962    Total Construction and Investment RE Loans              $            1,691,118 $            2,230,162 $            2,350,319 $            2,414,828    Concentration as a % of the Bank's Risk-Based Capital              211%             219%              226%             227%   1  Includes net unrealized gains or losses on securities available for sale, net gains or losses on cash flow hedges, and amounts resulting     from the application of the applicable accounting guidance for defined benefit and other postretirement plans.    ALLOWANCE AS A PERCENTAGE OF NON-PURCHASED LOANS (dollars in thousands):                                                                       3Q17         4Q17        1Q18         2Q18    Loans Held for Sale (GAAP)                                       $            4,514 $            7,216 $            4,469 $            2,046   Loans (GAAP)                                                         6,483,448     6,751,199     6,901,696     7,081,059         Total Loans                                                     6,487,962     6,758,415     6,906,165     7,083,105    Less: Purchased Loans                                               (1,395,368)    (1,258,386)    (1,136,711)    (1,022,160)        Non-Purchased Loans (non-GAAP)                              $ 5,092,594  $ 5,500,029 $ 5,769,454  $ 6,060,945     Allowance for Loan Losses (GAAP)                                 $         73,354 $         75,032 $         76,420 $         77,543   Fair Value Adjustment (FVA) (GAAP)                                           50,434             46,304             43,121             37,221        Allowance plus FVA (non-GAAP)                               $      123,788 $      121,336 $      119,541 $      114,764    Purchased Loans (GAAP)                                           $ 1,395,368  $ 1,258,386 $ 1,136,711  $ 1,022,160    Fair Value Adjustment (FVA) (GAAP)                                           50,434             46,304             43,121             37,221        Purchased Loans plus FVA (non-GAAP)                         $ 1,445,802  $ 1,304,690 $ 1,179,832  $ 1,059,381     Allowance as a Percentage of Non-Purchased Loans (non-GAAP)            1.44%       1.36%        1.32%        1.28%   FVA as a Percentage of Purchased Loans plus FVA (non-GAAP)             3.49%       3.55%        3.65%        3.51%                                                                                                                                                                                  30