It may be easier to think about this by looking at some lower numbers. All (positive) integers up to 16777216 can be exactly represented in a float. After that point, only every other integer can be represented (up to the next time we hit a limit, at which point it's only every 4th integer that can be represented).
So what has to happen then is the 16777218 has to stand for 16777218∓1, 16777220 has to stand for 16777220∓1, etc. As you move up into even larger numbers, the range of integers that each value has to "represent" grows wider and wider - until the point where 340282300000000000000000000000000000000 represents all numbers in the range 340282300000000000000000000000000000000∓100000000000000000000000000000000, approximately (I've not actually worked out what the right ∓ value is here, but hopefully you get the point)
Number Significand Exponent
16777215 = 1 11111111111111111111111 2^0 = 111111111111111111111111
16777216 = 1 00000000000000000000000 2^1 = 1000000000000000000000000
16777218 = 1 00000000000000000000001 2^1 = 1000000000000000000000010
^
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Implicit leading bit