MB Financial, Inc. Reports Strong Capital and Liquidity Position, Strong Loss Reserve Coverage Ratios

MB Financial, Inc. (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A ("the Bank” or "MB Financial Bank”), announced today first quarter results for 2009. The words "MB Financial,” "the Company,” "we,” "our” and "us” refer to MB Financial, Inc. and its wholly owned subsidiaries, unless indicated otherwise. We had a net loss of $28.1 million for the first quarter of 2009 compared to net income of $5.8 million in the first quarter of 2008, and a net loss of $24.8 million for the fourth quarter of 2008.

On February 27, 2009, the Company acquired all deposits and approximately $159.2 million in loans, net of a $14.5 million discount, of Glenwood-based Heritage Community Bank in a loss-share transaction facilitated by the Federal Deposit Insurance Corporation (FDIC). According to the terms of our purchase agreement with the FDIC, the FDIC has agreed to reimburse the Bank for 80 percent of the losses on loans up to $51.8 million. On loan losses exceeding $51.8 million, the FDIC will reimburse the Bank for 95 percent of the losses. Assets we acquired in this transaction that are covered by the loss-sharing arrangement with the FDIC are referred to below as "covered assets”.

Key items for the quarter were as follows:

Credit Quality (Excluding Covered Assets) – Increased Reserves, Strong Loss Reserve Coverage Ratios, Increased Loan Charge-Offs

• We increased our allowance for loan losses to total loans to 2.84%, as of March 31, 2009, compared to 2.31% as of December 31, 2008.
• Our non-performing loans to total loans and non-performing assets to total assets increased to 3.63% and 2.57%, respectively, as of March 31, 2009, compared to 2.34% and 1.71%, respectively, as of December 31, 2008.
• Our provision for loan losses was $89.7 million for the first quarter, while our net charge-offs were $54.4 million, resulting in a reserve build of $35.3 million during the quarter primarily due to the increase in non-performing loans and continued deteriorating economic conditions.
• We are taking aggressive action to mitigate losses from problem loans, including completing a sale of a group of non-performing loans in late April. These loans are reflected at the lower of cost or fair value as Loans Held for Sale in our March 31, 2009 financial statements.

Liquidity and Capital Position

• Our liquidity position continued to improve during the first quarter. We intend to use $400 million of our short-term liquid assets, generally in the form of deposits held at the Federal Reserve, to decrease non-core funding and our total assets in the second quarter of 2009.
• MB Financial Bank continues to significantly exceed the "Well-Capitalized” threshold established under the regulations of the Office of the Comptroller of the Currency. At March 31, 2009, MB Financial, Inc.’s total risk-based capital ratio was 13.48%, Tier 1 capital to risk-weighted assets ratio was 11.48% and Tier 1 capital to average asset ratio was 9.25%. Total capital was approximately $234.5 million in excess of the 10% "Well-Capitalized” threshold.
• Our tangible common equity to assets and tangible common equity to risk weighted assets ratios were 5.07% and 6.49%, respectively, at March 31, 2009. Excluding short-term liquid assets to be used to reduce non-core funding (as previously discussed), the Company’s tangible common equity ratio would be approximately 5.31%.
• The Company reduced its second quarter dividend by $0.11 to $0.01, based on a detailed review and analysis of our potential capital needs. This analysis considered the current weak state of the economy and increasingly adverse credit cycle as well as opportunities that may arise to effectively deploy capital.

Strong Balance Sheet Position

• Core funding increased by $504.7 million during the first quarter of 2009. Year over year core funding increased by $1.1 billion or 21%.
• Our non-interest bearing deposits grew by 18% from March 31, 2008 to March 31, 2009, and 25% annualized on a linked quarter basis.
• We have maintained our disciplined investment management philosophy and have avoided the types of problem securities that have caused many financial institutions to incur large losses. Net unrealized gains in our portfolio were $18.8 million as of March 31, 2009. The total return on our investment portfolio, defined as interest income plus unrealized and realized gains and losses, was 6.89% in 2008 and 5.79% annualized for the first quarter of 2009.

RESULTS OF OPERATIONS

First Quarter Results

Net Interest Income

Net interest income on a tax equivalent basis increased $1.3 million from the fourth quarter of 2008 to the first quarter of 2009. The increase in net interest income was primarily due to a $278.2 million increase in average interest earning assets and a one basis point increase in the net interest margin on a fully tax equivalent basis. Our non-performing loans negatively impacted the net interest margin during the first quarter of 2009, the fourth quarter of 2008 and the first quarter of 2008 by approximately 16 basis points, 13 basis points and 5 basis points, respectively. Additionally, our short-term liquidity position negatively impacted the net interest margin during the first quarter of 2009 and the fourth quarter of 2008 by approximately 7 basis points and 8 basis points, respectively.

See the supplemental net interest margin table for further detail.

Other Income (in thousands):

				Three Months Ended
				March 31,			December 31,				September 30,			June 30,			March 31,
				2009			2008				2008			2008			2008
Other income:
	Loan service fees			$	1,843		$	1,850			$	2,385		$	2,475		$	2,470
	Deposit service fees				6,399			7,479				7,330			6,889			6,530
	Lease financing, net				4,319			4,604				4,533			3,969			3,867
	Brokerage fees				1,078			968				1,177			1,187			985
	Trust and asset management fees				2,815			2,784				3,276			3,589			2,220
	Net gain on sale of investment securities				9,694			24				-			1			1,105
	Increase in cash surrender value of life insurance				456			570				1,995			1,128			1,606
	Net gain (loss) on sale of other assets				1			(874	)			26			50			(306	)
	Merchant card processing				4,279			4,326				4,541			4,644			4,530
	Other operating income				1,800			206				1,162			1,635			1,530
Total other income				$	32,684		$	21,937			$	26,425		$	25,567		$	24,537

Other income increased by $10.7 million from the fourth quarter of 2008, primarily due to gains on sale of investment securities which totaled approximately $9.7 million during the first quarter of 2009. Given the current low interest rate environment, we realized a portion of our unrealized securities gains and intend to use the proceeds over the next quarter to reduce non-core funding and better position our balance sheet for a rising rate environment. Deposit service fees decreased primarily due to reduced consumer and business spending during the first quarter, which impacted our overdraft fees as well as our treasury management fees. Other operating income increased primarily due to a decrease in market value of assets held in trust for deferred compensation of $526 thousand during the first quarter of 2009 compared to a decrease of $1.2 million during the fourth quarter of 2008, and an increase in gains recognized on the sale of loans and other real estate owned during the first quarter of 2009.

Other income increased by $8.1 million from the first quarter of 2008 to the first quarter of 2009, primarily due to the increase in gain on sale of investment securities. Loan service fees decreased, primarily due to a decrease in letter of credit and prepayment fees. Net lease financing increased, primarily due to higher residual realizations during the first quarter of 2009 compared to the first quarter of 2008. Trust and asset management fees increased primarily due to our Cedar Hill acquisition during the second quarter of 2008. The decrease in cash surrender value of life insurance was primarily due to a decrease in overall interest rates from the first quarter of 2008 to the first quarter of 2009, and a $436 thousand death benefit on a bank owned life insurance policy that we recognized during the first quarter of 2008.

Other Expense (in thousands):

				Three Months Ended
				March 31,			December 31,			September 30,			June 30,			March 31,
				2009			2008			2008			2008			2008
Other expense:
	Salaries and employee benefits			$	27,016		$	24,253		$	29,342		$	29,163		$	26,810
	Occupancy and equipment expense				7,700			7,310			7,120			6,967			7,525
	Computer services expense				2,287			1,973			1,840			1,843			1,737
	Advertising and marketing expense				1,314			904			1,450			1,448			1,290
	Professional and legal expense				969			1,117			884			803			306
	Brokerage fee expense				393			476			564			470			419
	Telecommunication expense				751			668			621			774			762
	Other intangibles amortization expense				878			913			913			913			815
	Merchant card processing				3,890			4,045			4,175			4,256			4,105
	FDIC insurance premiums				2,668			1,188			292			235			162
	Other operating expenses				5,194			5,424			4,965			5,254			4,293
Total other expense				$	53,060		$	48,271		$	52,166		$	52,126		$	48,224

Other expense increased $4.8 million from the fourth quarter of 2008 to the first quarter of 2009. Salaries and employee benefits increased from the fourth quarter of 2008 to the first quarter of 2009, primarily due to a reduction in employee bonus expense and employee healthcare expense during the fourth quarter of 2008. FDIC insurance premiums increased from the fourth quarter of 2008 to the first quarter of 2009, as our FDIC credits were fully utilized during the fourth quarter of 2008 combined with the FDIC increasing its assessment rate for the first quarter of 2009. Other operating expense was negatively impacted by a decrease in the market value of assets held in trust for deferred compensation of $526 thousand during the first quarter of 2009 compared to a decrease of $1.2 million during the fourth quarter of 2008. Additionally, the acquisition of Heritage Community Bank increased operating expenses during the first quarter of 2009 as follows: $275 thousand related to salaries and benefits, $225 thousand primarily related to nonrecurring computer conversion expense and $100 thousand related to occupancy.

Other expense increased $4.8 million from the first quarter of 2008 to the first quarter of 2009. The acquisition of Cedar Hill increased total other expense by $1.3 million during the first quarter of 2009. As noted above our FDIC credits were fully utilized during the fourth quarter of 2008 combined with the FDIC increasing its assessment rate.

LOAN PORTFOLIO

The following table sets forth the composition of the loan portfolio, excluding covered assets and loans held for sale, as of the dates indicated (dollars in thousands):

				March 31,							December 31,							September 30,							June 30,							March 31,
				2009							2008							2008							2008							2008
				Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total			Amount				% of Total
Commercial related credits:
	Commercial loans			$	1,507,616			24	%		$	1,522,380			24	%		$	1,510,620			25	%		$	1,450,822			24	%		$	1,433,114			25	%
	Commercial loans collateralized by assignment of lease payments (lease loans)				738,527			12	%			649,918			10	%			609,101			10	%			596,148			10	%			581,502			10	%
	Commercial real estate				2,359,868			37	%			2,353,261			38	%			2,275,183			37	%			2,210,789			37	%			2,026,249			35	%
	Construction real estate				764,876			12	%			757,900			12	%			756,694			12	%			819,565			14	%			844,186			14	%
Total commercial related credits					5,370,887			85	%			5,283,459			85	%			5,151,598			85	%			5,077,324			85	%			4,885,051			84	%
Other loans:
	Residential real estate				287,256			5	%			295,336			5	%			300,223			5	%			311,108			5	%			361,762			6	%
	Indirect motorcycle				157,081			2	%			153,277			2	%			155,045			3	%			144,684			2	%			118,912			2	%
	Indirect automobile				32,731			1	%			35,950			1	%			38,844			1	%			40,399			1	%			43,436			1	%
	Home equity				411,527			6	%			401,029			6	%			383,399			6	%			373,675			6	%			365,269			6	%
	Consumer loans				56,654			1	%			59,512			1	%			66,938			1	%			53,792			1	%			54,671			1	%
Total other loans					945,249			15	%			945,104			15	%			944,449			15	%			923,658			15	%			944,050			16	%
Gross loans					6,316,136			100	%			6,228,563			100	%			6,096,047			100	%			6,000,982			100	%			5,829,101			100	%
	Allowance for loan losses				(179,273	)						(144,001	)						(88,863	)						(82,544	)						(78,764	)
Net loans				$	6,136,863						$	6,084,562						$	6,007,184						$	5,918,438						$	5,750,337

Commercial related credits increased by 7% on an annualized basis from December 31, 2008 to March 31, 2009 and by 10% from March 31, 2008. Total loans, excluding covered assets, grew by 6% on an annualized basis from the fourth quarter of 2008 to the first quarter of 2009, and 8% from March 31, 2008.

The following table sets forth the composition of the construction real estate loan portfolio by geographic location, excluding covered assets and loans held for sale, as of March 31, 2009 (dollars in thousands):

				Geographical Location
										Suburban Illinois
				Chicago						and Northwest Indiana						Other States						Total
				Amount			% of Total Loans			Amount			% of Total Loans			Amount			% of Total Loans			Amount			% of Total Loans
Residential construction related credits
	Unimproved land			$	-		-			$	5,434		0.1	%		$	-		-			$	5,434		0.1	%
	Improved lots and single family construction				44,600		0.6	%			128,532		2.1	%			16,953		0.3	%			190,085		3.0	%
	Condominiums				126,826		2.0	%			55,687		0.9	%			3,990		0.1	%			186,503		3.0	%
	Apartments				6,057		0.1	%			10,625		0.2	%			4,549		0.1	%			21,231		0.4	%
	Townhomes				7,630		0.1	%			34,962		0.6	%			7,661		0.1	%			50,253		0.8	%
Total residential construction related credits					185,113		2.8	%			235,240		3.9	%			33,153		0.6	%			453,506		7.3	%
Commercial construction related credits
	Unimproved land			$	-		0.0	%		$	2,416		0.0	%		$	-		-			$	2,416		0.0	%
	Improved lots and construction				11,724		0.2	%			52,519		0.9	%			-		-				64,243		1.1	%
	Industrial				-		0.0	%			35,889		0.6	%			12,856		0.2	%			48,745		0.8	%
	Office, retail and hotel				33,482		0.5	%			117,489		1.9	%			12,426		0.2	%			163,397		2.6	%
	Schools				10,775		0.2	%			3,129		0.1	%			-		-				13,904		0.3	%
	Medical				-		-				-		-				18,665		0.3	%			18,665		0.3	%
Total commercial construction related credits					55,981		0.9	%			211,442		3.5	%			43,947		0.7	%			311,370		5.1	%
Total construction loans				$	241,094		3.7	%		$	446,682		7.4	%		$	77,100		1.3	%		$	764,876		12.4	%

The following table sets forth the composition of the construction real estate loan portfolio by risk category, excluding covered assets and loans held for sale, as of March 31, 2009 (dollars in thousands):

				Risk Category
										Potential Problem and
				Non-Performing						and Other Watch
				Loans (NPLs)						List Loans						Pass Loans						Total
				Amount			% of Loan Balance Reserved			Amount			% of Loan Balance Reserved			Amount			% of Loan Balance Reserved			Amount			% of Loan Balance Reserved
Residential construction related credits
	Unimproved land			$	-		-			$	1,600		6	%		$	3,834		1	%		$	5,434		2	%
	Improved lots and single family construction				83,775		41	%			41,018		10	%			65,292		4	%			190,085		21	%
	Condos				16,029		15	%			96,656		9	%			73,818		3	%			186,503		7	%
	Apartments				-		-				3,595		2	%			17,636		2	%			21,231		2	%
	Townhomes				14,925		23	%			18,742		13	%			16,586		1	%			50,253		12	%
Total residential construction related credits					114,729		35	%			161,611		13	%			177,166		3	%			453,506		13	%
Commercial construction related credits
	Unimproved land			$	-		-			$	1,493		6	%		$	923		0	%		$	2,416		4	%
	Improved lots and construction				15,724		28	%			8,272		5	%			40,247		1	%			64,243		8	%
	Industrial				-		-				8,576		6	%			40,169		0	%			48,745		1	%
	Office and Retail				14,003		47	%			11,992		16	%			137,402		1	%			163,397		6	%
	Schools				-		-				-		-				13,904		1	%			13,904		1	%
	Medical				-		-				-		-				18,665		3	%			18,665		3	%
Total commercial construction related credits					29,727		37	%			30,333		10	%			251,310		1	%			311,370		5	%
Total construction loans				$	144,456		34	%		$	191,944		10	%		$	428,476		2	%		$	764,876		10	%

After factoring in partial charge-offs taken on non-performing residential construction loans, the percentage of loan balance reserved would increase from 35% to 42%.

The following table sets forth the composition of the commercial real estate loan portfolio, excluding covered assets and loans held for sale, as of March 31, 2009 (dollars in thousands):

		Amount			% of Total
Commercial real estate loans
Industrial - non owner occupied		$	287,431		12	%
Office - non owner occupied			200,752		9	%
Retail - non owner occupied			413,847		18	%
Commercial - non owner occupied			149,079		6	%
Multifamily			517,322		22	%
Owner occupied			456,078		19	%
Healthcare			220,572		9	%
Church and school			56,403		2	%
Other			58,384		3	%
Total commercial real estate loans		$	2,359,868		100	%

ASSET QUALITY

The following table presents a summary of total performing loans, excluding covered assets and loans held for sale, greater than 30 days and less than 90 days past due as of the dates indicated (dollars in thousands):

		March 31,			December 31,			September 30,			June 30,			March 31,
		2009			2008			2008			2008			2008
30 - 59 Days Past Due		$	21,600		$	14,372		$	22,583		$	21,117		$	17,330
60 - 89 Days Past Due			4,809			8,575			14,043			7,188			11,318
		$	26,409		$	22,947		$	36,626		$	28,305		$	28,648

The following table presents a summary of non-performing assets, excluding covered assets and loans held for sale, as of the dates indicated (dollar amounts in thousands):

			March 31,				December 31,				September 30,				June 30,				March 31,
			2009				2008				2008				2008				2008
Non-performing loans:
	Non-accrual loans		$	229,537			$	145,936			$	115,716			$	91,972			$	46,666
	Loans 90 days or more past due, still accruing interest			-				-				1,490				1,627				4,218
Total non-performing loans				229,537				145,936				117,206				93,599				50,884
Other real estate owned				2,500				4,366				3,821				1,499				1,770
Repossessed vehicles				245				356				108				81				225
Total non-performing assets			$	232,282			$	150,658			$	121,135			$	95,179			$	52,879
Total non-performing loans to total loans				3.63	%			2.34	%			1.92	%			1.56	%			0.87	%
Total non-performing assets to total assets				2.57	%			1.71	%			1.45	%			1.13	%			0.65	%
Allowance for loan losses to non-performing loans				78.10	%			98.67	%			75.82	%			88.19	%			154.79	%

Although management believes that adequate specific and general loan loss allowances have been established, actual losses are dependent upon future events and, as such, further additions to the level of specific and general loan loss allowances may become necessary.

The following table presents data related to non-performing loans, excluding covered assets and loans held for sale, by Dollar amount and category at March 31, 2009 (dollar amounts in thousands):

		Commercial and Lease Loans						Construction Real Estate Loans						Commercial Real Estate Loans						Consumer Loans				Total Loans
		Number of Borrowers		Amount				Number of Borrowers		Amount				Number of Borrowers		Amount				Amount				Amount
$10.0 million or more		-		$	-			3		$	45,807			1		$	13,625			$	-			$	59,432
$5.0 million to $9.9 million		4			24,872			9			60,064			-			-				-				84,936
$1.5 million to $4.9 million		7			20,152			8			31,583			2			6,103				-				57,838
Under $1.5 million		16			4,955			9			7,002			15			3,870				11,504				27,331
		27		$	49,979			29		$	144,456			18		$	23,598			$	11,504			$	229,537
Percentage of individual loan category					2.23	%					18.89	%					1.00	%			1.22	%			3.63	%

The following table presents data related to non-performing loans, excluding covered assets and loans held for sale, by dollar amount and category at December 31, 2008 (dollar amounts in thousands):

		Commercial and Lease Loans						Construction Real Estate Loans						Commercial Real Estate Loans						Consumer Loans				Total Loans
		Number of Borrowers		Amount				Number of Borrowers		Amount				Number of Borrowers		Amount				Amount				Amount
$10.0 million or more		1		$	10,851			2		$	24,595			-		$	-			$	-			$	35,446
$5.0 million to $9.9 million		-			-			4			29,235			-			-				-				29,235
$1.5 million to $4.9 million		-			-			6			22,893			7			17,917				-				40,810
Under $1.5 million		16			9,167			16			9,324			33			14,141				7,813				40,445
		17		$	20,018			28		$	86,047			40		$	32,058			$	7,813			$	145,936
Percentage of individual loan category					0.92	%					11.35	%					1.36	%			0.83	%			2.34	%

We define potential problem loans as performing loans rated substandard that do not meet the definition of a non-performing loan (See "Asset Quality” section above for non-performing loans). We do not necessarily expect to realize losses on potential problem loans, but we recognize potential problem loans carry a higher probability of default and require additional attention by management. The aggregate principal amount of potential problem loans, was $215.4 million, or 3.41% of total loans, excluding covered assets and loans held for sale, as of March 31, 2009, compared to $100.9 million, or 1.60% of total loans as of December 31, 2008. This increase was primarily due to a $71.8 million increase in construction real estate loans, as a result of the continued weak residential construction market.

Below is a reconciliation of the activity in our allowance for loan losses for the periods indicated (dollar amounts in thousands):

				Three Months Ended
				March 31,				December 31,				September 30,				June 30,				March 31,
				2009				2008				2008				2008				2008
Balance at the beginning of period				$	144,001			$	88,863			$	82,544			$	78,764			$	65,103
Provision for loan losses					89,700				72,581				18,400				12,200				22,540
Charge-offs:
	Commercial loans				(10,548	)			(1,914	)			(6,231	)			(1,342	)			(4,166	)
	Commercial loans collateralized by assignment of lease payments (lease loans)				(3,420	)			(440	)			(482	)			(154	)			(182	)
	Commercial real estate loans				(24,189	)			(7,076	)			(2,292	)			(1,854	)			(3,650	)
	Construction real estate				(14,697	)			(7,144	)			(2,110	)			(4,551	)			(1,135	)
	Residential real estate				(178	)			(117	)			(315	)			(92	)			(26	)
	Indirect vehicle				(1,065	)			(615	)			(499	)			(366	)			(629	)
	Home equity				(604	)			(503	)			(628	)			(488	)			(182	)
	Consumer loans				(155	)			(216	)			(167	)			(144	)			(115	)
		Total charge-offs			(54,856	)			(18,025	)			(12,724	)			(8,991	)			(10,085	)
Recoveries:
	Commercial loans				31				354				132				214				191
	Commercial loans collateralized by assignment of lease payments (lease loans)				-				67				-				-				-
	Commercial real estate loans				18				-				257				6				3
	Construction real estate				250				-				40				161				750
	Residential real estate				3				17				1				5				6
	Indirect vehicle				111				116				152				163				194
	Home equity				11				17				48				15				52
	Consumer loans				5				11				13				7				10
		Total recoveries			429				582				643				571				1,206
Net charge-offs, excluding covered assets					(54,427	)			(17,443	)			(12,081	)			(8,420	)			(8,879	)
Net charge-offs on covered assets					(1	)			-				-				-				-
Total net charge-offs					(54,428	)			(17,443	)			(12,081	)			(8,420	)			(8,879	)
Balance				$	179,273			$	144,001			$	88,863			$	82,544			$	78,764
Total loans, excluding covered assets and loans held for sale				$	6,316,136			$	6,228,563			$	6,096,047			$	6,000,982			$	5,829,101
Average loans, excluding covered assets and loans held for sale				$	6,275,711			$	6,166,152			$	6,026,179			$	5,927,236			$	5,687,646
Ratio of allowance for loan losses to total loans, excluding covered assets and loans held for sale					2.84	%			2.31	%			1.46	%			1.38	%			1.35	%
Net loan charge-offs to average loans, excluding covered assets and loans held for sale (annualized)					3.52	%			1.13	%			0.80	%			0.57	%			0.63	%

INVESTMENT SECURITIES AVAILABLE FOR SALE

The following table sets forth the fair value, amortized cost, and total unrealized gain (loss) of our investment securities available for sale, by type (in thousands):

			At March 31,				At December 31,			At September 30,				At June 30,				At March 31,
			2009				2008			2008				2008				2008
Fair Value
U.S. Treasury securities			$	11,545			$	-		$	-			$	-			$	-
Government sponsored agencies and enterprises				108,227				179,373			209,350				269,947				274,217
States and political subdivisions				424,541				427,986			430,120				431,882				417,609
Mortgage-backed securities				539,953				690,298			569,947				608,737				479,383
Corporate bonds				30,726				34,565			6,990				8,000				11,123
Equity securities				3,681				3,607			3,524				3,480				3,520
Debt securities issued by foreign governments				302				301			298				295				301
	Total fair value		$	1,118,975			$	1,336,130		$	1,220,229			$	1,322,341			$	1,186,153
Amortized cost
U.S. Treasury securities			$	11,546			$	-		$	-			$	-			$	-
Government sponsored agencies and enterprises				105,354				171,385			206,429				266,418				266,276
States and political subdivisions				416,329				417,595			428,610				432,780				408,969
Mortgage-backed securities				531,547				682,692			568,054				606,150				472,482
Corporate bonds				31,487				34,546			7,764				7,765				10,779
Equity securities				3,631				3,595			3,557				3,520				3,484
Debt securities issued by foreign governments				302				301			301				301				301
	Total amortized cost		$	1,100,196			$	1,310,114		$	1,214,715			$	1,316,934			$	1,162,291
Unrealized gain (loss)
U.S. Treasury securities			$	(1	)		$	-		$	-			$	-			$	-
Government sponsored agencies and enterprises				2,873				7,988			2,921				3,529				7,941
States and political subdivisions				8,212				10,391			1,510				(898	)			8,640
Mortgage-backed securities				8,406				7,606			1,893				2,587				6,901
Corporate bonds				(761	)			19			(774	)			235				344
Equity securities				50				12			(33	)			(40	)			36
Debt securities issued by foreign governments				-				-			(3	)			(6	)			-
	Total unrealized gain		$	18,779			$	26,016		$	5,514			$	5,407			$	23,862

We do not have any meaningful direct or indirect holdings of subprime residential mortgage loans, home equity lines of credit, or any Fannie Mae or Freddie Mac preferred or common equity securities in our investment portfolio. Additionally, more than 99% of our mortgage-backed securities are agency guaranteed.

FUNDING MIX AND LIQUIDITY

The following table shows the composition of our core and wholesale funding resources as of the dates indicated (dollars in thousands):

				March 31,						December 31,						September 30,						June 30,						March 31,
				2009						2008						2008						2008						2008
							% of						% of						% of						% of						% of
				Amount			Total			Amount			Total			Amount			Total			Amount			Total			Amount			Total
Core funding:
	Non-interest bearing deposits			$	1,018,849		13	%		$	960,117		13	%		$	935,153		13	%		$	898,954		12	%		$	865,665		12	%
	Money market and NOW accounts				1,762,340		22	%			1,465,436		19	%			1,326,474		18	%			1,257,852		17	%			1,220,152		17	%
	Savings accounts				440,326		6	%			367,684		5	%			375,567		5	%			390,145		5	%			389,944		5	%
	Certificates of deposit				2,690,087		33	%			2,604,565		34	%			2,523,198		34	%			2,379,894		32	%			2,324,157		33	%
	Customer repurchase agreements				273,718		4	%			282,831		4	%			260,087		3	%			312,170		4	%			328,976		5	%
Total core funding					6,185,320		78	%			5,680,633		75	%			5,420,479		73	%			5,239,015		70	%			5,128,894		72	%
Wholesale funding:
	Public funds deposits				166,501		2	%			232,994		3	%			211,250		3	%			252,693		3	%			264,972		5	%
	Brokered deposit accounts				818,604		10	%			864,775		11	%			997,767		13	%			858,135		12	%			616,197		9	%
	Other short-term borrowings				200,780		3	%			205,787		2	%			125,000		2	%			452,002		6	%			594,009		7	%
	Long-term borrowings				312,246		4	%			421,466		6	%			429,548		6	%			433,625		6	%			304,010		4	%
	Subordinated debt				50,000		1	%			50,000		1	%			50,000		1	%			50,000		1	%			50,000		1	%
	Junior subordinated notes issued to capital trusts				158,784		2	%			158,824		2	%			158,872		2	%			158,920		2	%			158,968		2	%
Total wholesale funding					1,706,915		22	%			1,933,846		25	%			1,972,437		27	%			2,205,375		30	%			1,988,156		28	%
		Total funding		$	7,892,235		100	%		$	7,614,479		100	%		$	7,392,916		100	%		$	7,444,390		100	%		$	7,117,050		100	%

Our liquidity position improved during the first quarter, primarily due to an increase in core funding. Core funding increased by $504.7 million, or 36%, on an annualized link quarter basis, and $1.1 billion, or 21%, compared to March 31, 2008.

FORWARD-LOOKING STATEMENTS

When used in this press release and in filings with the Securities and Exchange Commission, in other press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "believe," "will," "should," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements may relate to our future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial items. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.

Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following (1) expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized within the anticipated time frames or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; (2) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses, which could necessitate additional provisions for loan losses, resulting both from loans we originate and loans we acquire from other financial institutions; (3) results of examinations by the Office of Comptroller of Currency and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for loan losses or write-down assets; (4) competitive pressures among depository institutions; (5) interest rate movements and their impact on customer behavior and net interest margin; (6) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (7) fluctuations in real estate values; (8) the ability to adapt successfully to technological changes to meet customers' needs and developments in the market place; (9) our ability to realize the residual values of our direct finance, leveraged, and operating leases; (10) our ability to access cost-effective funding; (11) changes in financial markets; (12) changes in economic conditions in general and in the Chicago metropolitan area in particular; (13) the costs, effects and outcomes of litigation; (14) new legislation or regulatory changes, including but not limited to changes in federal and/or state tax laws or interpretations thereof by taxing authorities and other governmental initiatives affecting the financial services industry; (15) changes in accounting principles, policies or guidelines; (16) our future acquisitions of other depository institutions or lines of business; and (17) future goodwill impairment due to changes in our business, changes in market conditions, or other factors.

We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

TABLES TO FOLLOW

MB FINANCIAL, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of the dates indicated
(Amounts in thousands, except per share data)
(Unaudited)
			March 31,			December 31,			September 30,			June 30,			March 31,
			2009			2008			2008			2008			2008
ASSETS
Cash and due from banks			$ 108,416			$ 79,824			$ 118,191			$ 164,996			$ 187,116
Interest bearing deposits with banks			416,404			261,834			6,043			6,487			16,054
		Total cash and cash equivalents	524,820			341,658			124,234			171,483			203,170
Investment securities:						-			-			-			-
	Securities available for sale, at fair value		1,118,975			1,336,130			1,220,229			1,322,341			1,186,153
	Non-marketable securities - FHLB and FRB Stock		65,752			64,246			63,913			63,913			63,671
		Total investment securities	1,184,727			1,400,376			1,284,142			1,386,254			1,249,824
Loans held for sale			18,406			-			-			-			-
Loans:
	Total loans		6,316,136			6,228,563			6,096,047			6,000,982			5,829,101
	Less allowance for loan loss		179,273			144,001			88,863			82,544			78,764
		Net loans	6,136,863			6,084,562			6,007,184			5,918,438			5,750,337
Covered assets			158,348			-			-			-			-
Lease investments, net			117,648			125,034			117,474			113,101			91,675
Premises and equipment, net			185,941			186,474			185,556			185,411			184,257
Cash surrender value of life insurance			119,943			119,526			120,481			119,423			118,296
Goodwill, net			387,069			387,069			387,069			387,069			379,047
Other intangibles, net			26,993			25,776			26,689			27,602			24,537
Other assets			164,374			149,288			105,780			97,811			89,213
		Total assets	$ 9,025,132			$ 8,819,763			$ 8,358,609			$ 8,406,592			$ 8,090,356
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
	Noninterest bearing		$ 1,018,849			$ 960,117			$ 935,153			$ 898,954			$ 865,665
	Interest bearing		5,877,859			5,535,454			5,434,256			5,138,719			4,814,621
		Total deposits	6,896,708			6,495,571			6,369,409			6,037,673			5,680,286
Short-term borrowings			474,498			488,619			385,087			764,172			922,985
Long-term borrowings			362,246			471,466			479,548			483,625			354,010
Junior subordinated notes issued to capital trusts			158,784			158,824			158,872			158,920			158,968
Accrued expenses and other liabilities			98,314			136,459			76,172			81,321			102,060
		Total liabilities	7,990,550			7,750,939			7,469,088			7,525,711			7,218,309
Stockholders' Equity
Preferred stock, ($0.01 par value, authorized 1,000,000 shares at March 31,
	2009 and December 31, 2008; series A, 5% cumulative perpetual, 196,000
	issued and outstanding at March 31, 2009 and December 31, 2008,
	$1,000.00 liquidation value)		193,105			193,025			-			-			-
Common stock, ($0.01 par value; authorized 50,000,000 shares at March 31,
	2009 and December 31, 2008, and 43,000,000 at September 30, 2008, June
	30, 2008 and March 31, 2008; issued 37,541,869, 37,542,968, 37,539,615,
	37,525,940 and 37,414,091 shares at March 31, 2009, December 31, 2008,
	September 30, 2008, June 30, 2008 and March 31, 2008, respectively)		375			375			375			375			374
Additional paid-in capital			446,909			445,692			443,380			441,914			441,405
Retained earnings			450,983			495,505			527,453			520,595			504,861
Accumulated other comprehensive income			11,456			16,910			3,584			3,515			15,511
Less: 2,213,554, 2,612,143, 2,674,240, 2,676,592 and 2,734,281 shares of
	Treasury stock at cost, at March 31, 2009, December 31, 2008, September
	30, 2008, June 30, 2008 and March 31, 2008, respectively		(70,831	)		(85,312	)		(87,866	)		(88,082	)		(90,104	)
		Controlling interest stockholders' equity	1,031,997			1,066,195			886,926			878,317			872,047
Noncontrolling interest			2,585			2,629			2,595			2,564			-
		Total stockholders' equity	1,034,582			1,068,824			889,521			880,881			872,047
Total liabilities and stockholders' equity			$ 9,025,132			$ 8,819,763			$ 8,358,609			$ 8,406,592			$ 8,090,356

MB FINANCIAL, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
			Three months ended
			March 31,			December 31,			September 30,			June 30,			March 31,
			2009			2008			2008			2008			2008
Interest income:
	Loans		$ 81,494			$ 87,474			$ 88,266			$ 87,458			$ 93,877
	Investment securities available for sale:
		Taxable	10,316			9,927			10,569			10,001			9,971
		Nontaxable	3,875			3,944			3,977			3,828			3,753
	Federal funds sold		-			2			165			14			95
	Other interest bearing accounts		130			188			84			89			106
		Total interest income	95,815			101,535			103,061			101,390			107,802
Interest expense:
	Deposits		33,579			38,996			37,216			34,309			40,849
	Short-term borrowings		1,546			1,406			2,966			5,351			7,867
	Long-term borrowings & junior subordinated notes		4,662			6,387			6,273			5,657			5,623
		Total interest expense	39,787			46,789			46,455			45,317			54,339
Net interest income			56,028			54,746			56,606			56,073			53,463
Provision for loan losses			89,700			72,581			18,400			12,200			22,540
Net interest income (loss) after provision for loan losses			(33,672	)		(17,835	)		38,206			43,873			30,923
Other income:
	Loan service fees		1,843			1,850			2,385			2,475			2,470
	Deposit service fees		6,399			7,479			7,330			6,889			6,530
	Lease financing, net		4,319			4,604			4,533			3,969			3,867
	Brokerage fees		1,078			968			1,177			1,187			985
	Trust & asset management fees		2,815			2,784			3,276			3,589			2,220
	Net gain on sale of investment securities		9,694			24			-			1			1,105
	Increase in cash surrender value of life insurance		456			570			1,995			1,128			1,606
	Net gain (loss) on sale of other assets		1			(874	)		26			50			(306	)
	Merchant card processing income		4,279			4,326			4,541			4,644			4,530
	Other operating income		1,800			206			1,162			1,635			1,530
	Total other income		32,684			21,937			26,425			25,567			24,537
Other expense:
	Salaries & employee benefits		27,016			24,253			29,342			29,163			26,810
	Occupancy & equipment expense		7,700			7,310			7,120			6,967			7,525
	Computer services expense		2,287			1,973			1,840			1,843			1,737
	Advertising & marketing expense		1,314			904			1,450			1,448			1,290
	Professional & legal expense		969			1,117			884			803			306
	Brokerage fee expense		393			476			564			470			419
	Telecommunication expense		751			668			621			774			762
	Other intangible amortization expense		878			913			913			913			815
	Merchant card processing expense		3,890			4,045			4,175			4,256			4,105
	FDIC insurance premiums		2,668			1,188			292			235			162
	Other operating expenses		5,194			5,424			4,965			5,254			4,293
	Total other expense		53,060			48,271			52,166			52,126			48,224
Income (loss) before income taxes			(54,048	)		(44,169	)		12,465			17,314			7,236
Income tax (benefit) expense			(25,943	)		(19,348	)		(689	)		(4,693	)		1,412
Income (loss)			(28,105	)		(24,821	)		13,154			22,007			5,824
Preferred stock dividends and discount accretion			2,531			789			-			-			-
		Net income (loss) available to common shareholders	$ (30,636	)		$ (25,610	)		$ 13,154			$ 22,007			$ 5,824
Common share data:
Basic (loss) earnings per common share			$ (0.88	)		$ (0.74	)		$ 0.38			$ 0.63			$ 0.17
Diluted (loss) earnings per common share			$ (0.88	)		$ (0.74	)		$ 0.38			$ 0.63			$ 0.17
Weighted average common shares outstanding			34,914,012			34,777,651			34,732,633			34,692,571			34,620,435
Diluted weighted average common shares outstanding			35,053,352			35,164,585			35,074,297			35,047,596			34,994,731

			Three months ended
			March 31,			December 31,			September 30,			June 30,			March 31,
			2009			2008			2008			2008			2008
Performance Ratios:
	Annualized return on average assets		(1.30	%)		(1.15	%)		0.63	%		1.08	%		0.30	%
	Annualized return on average common equity		(14.01	)		(11.38	)		5.91			10.11			2.66
	Annualized cash return on average tangible common equity (1)		(25.25	)		(20.14	)		11.31			19.12			5.28
	Net interest rate spread		2.64			2.63			2.82			2.88			2.75
	Efficiency ratio (2)		65.05			60.90			60.92			61.96			61.07
	Net interest margin		2.88			2.86			3.04			3.11			3.10
	Tax equivalent effect		0.13			0.14			0.14			0.14			0.12
	Net interest margin - fully tax equivalent basis (3)		3.01			3.00			3.18			3.25			3.22
Asset Quality Ratios (4):
	Non-performing loans to total loans		3.63	%		2.34	%		1.92	%		1.56	%		0.87	%
	Non-performing assets to total assets		2.57			1.71			1.45			1.13			0.65
	Allowance for loan losses to total loans		2.84			2.31			1.46			1.38			1.35
	Allowance for loan losses to non-performing loans		78.10			98.67			75.82			88.19			154.79
	Net loan charge-offs to average loans (annualized)		3.52			1.13			0.80			0.57			0.63
Capital Ratios:
	Tangible equity to assets (5)		7.31	%		7.90	%		6.10	%		5.95	%		6.20	%
	Tangible common equity to risk weighted assets (6)		6.49			7.10			7.36			7.28			7.55
	Tangible common equity to assets (7)		5.07			5.65			6.10			5.95			6.20
	Common book value per share (8)		$23.82			$25.17			$25.51			$25.20			$25.15
	Less: goodwill and other intangible assets, net of tax
		benefit, per common share	11.45			11.56			11.60			11.62			11.39
	Tangible book value per share (9)		12.37			13.61			13.91			13.58			13.76
	Total capital (to risk-weighted assets)		13.48	%		14.07	%		11.65	%		11.59	%		11.81	%
	Tier 1 capital (to risk-weighted assets)		11.48			12.06			9.64			9.58			9.78
	Tier 1 capital (to average assets)		9.25			9.85			8.00			8.08			8.29

(1)		Net cash flow available to common shareholders (net income available to common shareholders or net income, as appropriate, plus other intangibles amortization expense, net of tax benefit) / Average tangible common equity (average common equity less average goodwill and average other intangibles, net of tax benefit)
(2)		Equals total other expense divided by the sum of net interest income on a fully tax equivalent basis and total other income less net gains (losses) on securities available for sale
(3)		Represents net interest income, on a fully tax equivalent basis assuming a 35% tax rate, as a percentage of average interest earning assets.
(4)		Excluded covered assets and loans held for sale.
(5)		Equals total ending equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit.
(6)		Equals total ending common shareholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total risk weighted assets.
(7)		Equals total ending common shareholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit.
(8)		Equals total ending common shareholders’ equity divided by common shares outstanding.
(9)		Equals total ending common shareholders’ equity less goodwill and other intangibles, net of tax benefit, divided by common shares outstanding.

NON-GAAP FINANCIAL INFORMATION

This press release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). These measures include net interest income on a fully tax equivalent basis, net interest margin on a fully tax equivalent basis, tangible common equity to assets ratio, tangible common book value per share, and annualized cash return on average tangible common equity. Our management uses these non-GAAP measures in its analysis of our performance. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income and net interest margin on a fully tax equivalent basis, and accordingly believes that providing these measures may be useful for peer comparison purposes. The other measures exclude the ending balances of acquisition-related goodwill and other intangible assets, net of tax benefit, in determining tangible stockholders’ equity. Management believes the presentation of these other financial measures excluding the impact of such items provides useful supplemental information that is helpful in understanding our financial results, as they provide a method to assess management’s success in utilizing our tangible capital. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table presents a reconciliation of tangible equity to equity (in thousands):

			March 31,		December 31,		September 30,		June 30,		March 31,
			2009		2008		2008		2008		2008
Stockholders' equity - as reported			$ 1,034,582		$ 1,068,824		$ 889,521		$ 880,881		$ 872,047
	Less: goodwill		387,069		387,069		387,069		387,069		379,047
	Less: other intangible, net of tax benefit		17,545		16,754		17,348		17,941		15,949
Tangible equity			$ 629,968		$ 665,001		$ 485,104		$ 475,871		$ 477,051

The following table presents a reconciliation of tangible common equity to shareholders’ common equity (in thousands):

			March 31,		December 31,		September 30,		June 30,		March 31,
			2009		2008		2008		2008		2008
Common stockholders' equity - as reported			$ 841,477		$ 875,799		$ 889,521		$ 880,881		$ 872,047
	Less: goodwill		387,069		387,069		387,069		387,069		379,047
	Less: other intangible, net of tax benefit		17,545		16,754		17,348		17,941		15,949
Tangible common equity			$ 436,863		$ 471,976		$ 485,104		$ 475,871		$ 477,051

The following table presents a reconciliation of average tangible common equity to average common shareholders’ equity (in thousands):

		Three months ended
		March 31,		December 31,		September 30,		June 30,		March 31,
		2009		2008		2008		2008		2008
Average common stockholders' equity - as reported		$ 886,740		$ 898,246		$ 888,206		$ 877,450		$ 879,056
Less: average goodwill		387,069		387,069		387,069		384,865		379,047
Less: average other intangible assets,
net of tax benefit		16,872		16,999		17,582		17,295		16,131
Average tangible common equity		$ 482,799		$ 494,178		$ 483,555		$ 475,290		$ 483,878

The following table presents a reconciliation of net cash flow available to common shareholders to net (loss) income available to common shareholders (in thousands):

			Three months ended
			March 31,			December 31,			September 30,		June 30,		March 31,
			2009			2008			2008		2008		2008
Net (loss) income available to common
		shareholders - as reported	$ (30,636	)		$ (25,610	)		$ 13,154		$ 22,007		$ 5,824
	Add: other intangible amortization
		expense, net of tax benefit	571			593			593		593		530
Net cash flow available to common shareholders			$ (30,065	)		$ (25,017	)		$ 13,747		$ 22,600		$ 6,354

Reconciliations of net interest income on a fully tax equivalent basis to net interest income and net interest margin on a fully tax equivalent basis to net interest margin are contained in the tables under "Net Interest Margin.” A reconciliation of tangible book value per share to book value per share is contained in the "Selected Financial Ratios” table.

NET INTEREST MARGIN

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest earning assets and the resultant yields, as well as the interest expense on average interest bearing liabilities, and the resultant costs, expressed both in dollars and rates (dollars in thousands):

			Three Months Ended March 31,														Three Months Ended December 31,
			2009							2008							2008
			Average				Yield/			Average				Yield/			Average				Yield/
			Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest Earning Assets:
Loans (1) (2):
Commercial related credits
	Commercial		$ 1,436,170		$ 16,960		4.72	%		$ 1,365,694		$ 22,771		6.60	%		$ 1,463,630		$ 19,926		5.33	%
	Commercial - nontaxable (3)		80,464		1,327		6.60			7,560		141		7.38			74,636		1,377		7.22
	Commercial loans collateralized by assignment
		of lease payments	679,314		10,876		6.40			555,076		9,411		6.78			611,390		10,065		6.58
	Real estate commercial		2,362,314		31,958		5.41			2,003,039		32,969		6.51			2,339,641		34,981		5.85
	Real estate construction		769,996		7,936		4.12			827,220		14,124		6.75			730,342		8,816		4.72
Total commercial related credits			5,328,258		69,057		5.18			4,758,589		79,416		6.60			5,219,639		75,165		5.63
Other loans
	Real estate residential		292,611		4,122		5.63			373,989		5,587		5.98			297,204		3,374		4.54
	Home equity		405,761		4,416		4.41			348,789		5,082		5.86			394,865		5,552		5.59
	Indirect		188,970		3,127		6.71			152,774		3,028		7.97			192,016		3,116		6.46
	Consumer loans		60,111		608		4.10			53,505		813		6.11			62,428		748		4.77
Total other loans			947,453		12,273		5.25			929,057		14,510		6.28			946,513		12,790		5.38
	Total loans, excluding covered assets		6,275,711		81,330		5.26			5,687,646		93,926		6.64			6,166,152		87,955		5.67
	Covered assets		54,693		628		4.66			-		-		-			-		-		-
	Total loans		6,330,404		81,958		5.25			5,687,646		93,926		6.64			6,166,152		87,955		5.67
Taxable investment securities			944,603		10,316		4.37			819,845		9,971		4.86			856,852		9,927		4.63
Investment securities exempt from federal income taxes (3)			412,251		5,962		5.78			401,207		5,774		5.69			421,025		6,069		5.64
Federal funds sold			-		-		0.00			15,220		95		2.47			761		2		1.03
Other interest bearing deposits			195,104		130		0.27			15,387		106		2.77			159,414		188		0.47
	Total interest earning assets		$ 7,882,362		98,366		5.06			$ 6,939,305		109,872		6.37			$ 7,604,204		104,141		5.45
Non-interest earning assets			909,913							925,512							951,683
	Total assets		$ 8,792,275							$ 7,864,817							$ 8,555,887
Interest Bearing Liabilities:
Core funding:
	Money market and NOW accounts		$ 1,519,499		$ 3,948		1.05	%		$ 1,234,965		$ 6,602		2.15	%		$ 1,421,131		$ 6,319		1.77	%
	Savings accounts		393,667		314		0.32			388,956		443		0.46			369,587		257		0.28
	Certificate of deposit		2,647,526		20,435		3.13			2,218,570		24,899		4.51			2,590,821		21,460		3.30
	Customer repos		267,440		250		0.38			334,464		1,830		2.20			266,354		486		0.73
Total core funding			4,828,132		24,947		2.10			4,176,955		33,774		3.25			4,647,893		28,522		2.44
Whole sale funding:
	Public funds		199,902		943		1.91			282,793		3,013		4.29			218,821		1,474		2.68
	Brokered accounts (includes fee expense)		833,606		7,939		3.86			516,841		5,892		4.59			950,163		9,486		3.97
	Other short-term borrowings		265,435		1,296		1.98			605,282		6,037		4.01			156,384		920		2.34
	Long-term borrowings		536,189		4,662		3.48			461,053		5,623		4.82			633,787		6,387		3.94
Total wholesale funding			1,835,132		14,840		3.28			1,865,969		20,565		4.43			1,959,155		18,267		3.71
Total interest bearing liabilities			$ 6,663,264		$ 39,787		2.42			$ 6,042,924		$ 54,339		3.62			$ 6,607,048		$ 46,789		2.82
Non-interest bearing deposits			960,167							839,386							914,720
Other non-interest bearing liabilities			91,222							103,451							82,840
Stockholders' equity			1,077,622							879,056							951,279
		Total liabilities and stockholders' equity	$ 8,792,275							$ 7,864,817							$ 8,555,887
		Net interest income/interest rate spread (4)			$ 58,579		2.64	%				$ 55,533		2.75	%				$ 57,352		2.63	%
		Taxable equivalent adjustment			2,551							2,070							2,606
		Net interest income, as reported			$ 56,028							$ 53,463							$ 54,746
		Net interest margin (5)					2.88	%						3.10	%						2.86	%
		Tax equivalent effect					0.13	%						0.12	%						0.14	%
		Net interest margin on a fully equivalent basis (5)					3.01	%						3.22	%						3.00	%

(1)		Non-accrual loans are included in average loans.
(2)		Interest income includes amortization of deferred loan origination fees of $1.3 million, $2.0 million and $1.7 million for the three months ended March 31, 2009, March 31, 2008, and December 31, 2008, respectively.
(3)		Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate.
(4)		Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(5)		Net interest margin represents net interest income as a percentage of average interest earning assets.