Associated Banc-Corp (NYSE: ASB) reaches $51.8B assets after American National deal
Associated Banc-Corp reported net income of $123.6 million for the quarter ended June 30, 2026, up from $111.2 million a year earlier; six‑month net income was $243.2 million versus $212.9 million. Net interest income rose to $370.0 million from $300.0 million, and noninterest income to $80.4 million from $67.0 million. Noninterest expense increased to $271.9 million from $209.4 million, including $24.5 million of merger‑related costs.
Total assets reached $51.8 billion at June 30, 2026, compared with $45.2 billion at December 31, 2025. Loans grew to $36.5 billion and deposits to $39.9 billion, while FHLB advances increased to $4.6 billion. On April 1, 2026, the company completed the $594.1 million all‑stock acquisition of American National, adding $5.2 billion of assets and $4.5 billion of deposits, and recording $42.1 million of goodwill and $103.2 million of core deposit intangibles. Nonaccrual loans totaled $150.0 million; 53% of these were current on payments.
Positive
- None.
Negative
- None.
Filing Explained
The completed acquisition added 22,975,382 shares, while common shares issued were 211,991,791 at June 30 versus 189,016,409 at December 31.
Associated Banc-Corp uses this Form 10-Q to report unaudited interim financial statements and updates; it states that the American National acquisition was completed on
The completed all-stock transaction converted eligible American National shares into 22,975,382 Associated common shares, and common shares issued were 211,991,791 at
Because issuing additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes, the completed acquisition reduced existing common holders’ relative ownership percentage through its share consideration.
The purchase-price allocation remains preliminary because estimates for acquired loans, deposits, other assets, and the core deposit intangible may be refined for up to one year after closing; the filing also says additional transaction and integration costs will be expensed as incurred.
Key Figures
Total Assets: $51,812,506 (in thousands)
Total Loans: $36,467,040 (in thousands)
Total Deposits: $39,931,255 (in thousands)
+5 more
8 metrics
Total Assets
$51,812,506 (in thousands)
Total assets as of June 30, 2026
Total Loans
$36,467,040 (in thousands)
Loans outstanding as of June 30, 2026
Total Deposits
$39,931,255 (in thousands)
Deposits as of June 30, 2026
Q2 2026 Net Income
$123,564 (in thousands)
Net income for the three months ended June 30, 2026
Six-Month 2026 Net Income
$243,200 (in thousands)
Net income for the six months ended June 30, 2026
Diluted EPS Q2 2026
$0.63 per share
Diluted earnings per common share for Q2 2026
American National Consideration
$594,144 (in thousands)
Total stock consideration for the April 1, 2026 American National acquisition
Merger-Related Costs 1H 2026
$25,476 (in thousands)
Transaction and integration expenses for the six months ended June 30, 2026
Key Terms
Allowance for Credit Losses on Loans, Purchased credit deteriorated (PCD), Core deposit intangibles, Comprehensive income, +1 more
5 terms
Allowance for Credit Losses on Loans financial
"ACLL | Allowance for Credit Losses on Loans AFS | Available for Sale"
A bank's allowance for credit losses on loans is a reserve of money set aside to cover loans the lender expects may not be repaid. Think of it as a rainy-day fund for a loan portfolio: larger allowances signal more expected losses and reduce reported profits and available capital, so investors watch it to judge a lender’s risk exposure, earnings quality, and financial strength.
Purchased credit deteriorated (PCD) financial
"are considered purchase credit deteriorated (PCD) assets."
Core deposit intangibles financial
"(a) Core deposit intangibles"
Core deposit intangibles are the recorded value placed on a bank’s customer deposits when one financial institution buys another, reflecting the extra worth of stable, low-cost accounts that are expected to stay after the sale. Investors care because this value is written into the buyer’s books and gradually expensed over time, which affects reported earnings and signals how much the market values the predictability and cost advantage of those customer relationships—similar to paying extra for a neighborhood store because its regular customers keep coming back.
Comprehensive income financial
"Comprehensive income | $ | 88,476 | $ | 132,076"
Comprehensive income is the total change in a company’s value in a reporting period that comes from everyday operations plus other gains or losses not shown on the regular profit-and-loss statement. Think of net income as the visible money earned this year and comprehensive income as that money plus hidden adjustments—such as currency swings, unrealized gains or losses on investments, and pension revaluations—that also affect shareholders’ stake and help investors see the fuller financial picture.
Nonaccrual loans financial
"Of the total nonaccrual loans, $78.9 million, or 53%, were current"
Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.
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FAQ
What were Associated Banc-Corp’s Q2 2026 earnings (ASB)?
Associated Banc-Corp earned $123.6 million in net income for Q2 2026, up from $111.2 million a year earlier. Diluted earnings per common share were $0.63, compared with $0.65 in Q2 2025, as higher net interest income was partly offset by higher expenses.
How did ASB’s balance sheet change by June 30, 2026?
Total assets were $51.8 billion at June 30, 2026, up from $45.2 billion at December 31, 2025. Loans rose to $36.5 billion and deposits to $39.9 billion, while FHLB advances increased to $4.6 billion, reflecting growth and the American National acquisition.
What are the key terms of ASB’s American National acquisition?
On April 1, 2026, ASB closed the American National deal for $594.1 million in stock, issuing 22,975,382 shares at $25.86 each (36.250 ASB shares per American National share). The acquisition added $5.19 billion of assets, $4.54 billion of deposits, and created $42.1 million of goodwill.
How many Associated Banc-Corp (ASB) common shares are outstanding?
At July 31, 2026, ASB had 188,849,659 common shares outstanding. Common shares outstanding were 188,718,072 at June 30, 2026, up from 165,979,940 at December 31, 2025, primarily due to shares issued as consideration in the American National acquisition.
What were ASB’s credit quality and charge-off trends in 1H 2026?
Provision for credit losses was $30.4 million for the first half of 2026. Total gross charge-offs were $34.5 million. Nonaccrual loans stood at $150.0 million, and 53% of these nonaccrual balances were current on payment status at June 30, 2026.
How much did ASB spend on merger-related costs in 1H 2026?
Merger-related expenses tied to the American National acquisition totaled $25.5 million in the first half of 2026. These costs were mainly in personnel ($13.4 million) and legal and professional fees ($10.3 million), with smaller amounts in technology, occupancy, marketing, equipment, and other categories.
On April 1, 2026, the Corporation completed its previously announced acquisition of American National pursuant to the terms of the Merger Agreement by and between Associated and American National.
Pursuant to the Merger Agreement, (i) American National merged with and into Associated Banc-Corp, with Associated Banc-Corp continuing as the surviving corporation, and (ii) following such merger, American National Bank, a national banking association and wholly owned subsidiary of American National, merged with and into the Bank, with the Bank continuing as the surviving bank.
At the effective time of the merger, the outstanding shares of voting common stock and non-voting common stock of American National outstanding immediately prior to the effective time of the merger, other than certain shares held by the Corporation or American National, were converted into the right to receive an aggregate 22,975,382 shares of common stock of the Corporation. This represented 36.250 shares of the Corporation's common stock for each share of outstanding common stock of American National; with cash paid in lieu of fractional shares. Total consideration for the acquisition was 594.1 million valued at the acquisition date fair value of 25.86 per share.
American National operated 33 branches across Nebraska, Minnesota and Iowa, with a concentration in the Greater Omaha and Minneapolis / St. Paul metro markets. As a result of the acquisition, the Corporation will increase its deposit market share and deliver its products and services to an expanded client base across attractive Midwest markets. As of March 31, 2026, American National had total assets of 5.2 billion, total loans of 3.8 billion and total deposits of 4.5 billion.
The acquisition of American National will be accounted for as a business combination using the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. Due to the timing of the acquisition, the initial accounting for the acquisition has not been completed. The Corporation expects to finalize the valuation and complete the purchase price allocation as soon as practicable.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the quarterly period ended: June 30, 2026
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
| For the transition period from to | |||||||||||
Commission file number: 001-31343
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(920 ) 491-7500
(Registrant’s telephone number, including area code)
(not applicable)
(Former name, former address and former fiscal year, if changed since last report)
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☑ | Accelerated filer | ☐ | ||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
| Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares outstanding of registrant’s common stock, par value $0.01 per share, at July 31, 2026 was 188,849,659 .
1
| ASSOCIATED BANC-CORP | |||||
| Table of Contents | |||||
| Page | ||||||||
PART I. Financial Information | ||||||||
Item 1. Financial Statements (Unaudited): | 5 | |||||||
Consolidated Balance Sheets | 5 | |||||||
Consolidated Statements of Income | 6 | |||||||
Consolidated Statements of Comprehensive Income | 7 | |||||||
Consolidated Statements of Changes in Stockholders’ Equity | 8 | |||||||
Consolidated Statements of Cash Flows | 10 | |||||||
Notes to Consolidated Financial Statements | 12 | |||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 54 | |||||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 78 | |||||||
Item 4. Controls and Procedures | 79 | |||||||
PART II. Other Information | ||||||||
Item 1. Legal Proceedings | 80 | |||||||
Item 1A. Risk Factors | 80 | |||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 80 | |||||||
Item 5. Other Information | 80 | |||||||
Item 6. Exhibits | 81 | |||||||
Signatures | 82 | |||||||
2
| ASSOCIATED BANC-CORP | |||||
| Commonly Used Terms | |||||
| The following listing provides a reference of common acronyms, abbreviations, and other defined terms used throughout the document: | |||||
| ACLL | Allowance for Credit Losses on Loans | ||||
| AFS | Available for Sale | ||||
| ALCO | Asset / Liability Committee | ||||
| AOCI | Accumulated Other Comprehensive Income | ||||
| American National | American National Corporation | ||||
| ASC | Accounting Standards Codification | ||||
| ASU | Accounting Standards Update | ||||
| the Bank | Associated Bank, National Association | ||||
| Basel III | International framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity | ||||
| bp | basis point(s) | ||||
| BTFP | Bank Term Funding Program | ||||
| CDs | Certificates of Deposit | ||||
| CDIs | Core Deposit Intangibles | ||||
| CECL | Current Expected Credit Losses | ||||
| CET1 | Common Equity Tier 1 | ||||
| Corporation / our | Associated Banc-Corp collectively with all of its subsidiaries and affiliates | ||||
| CRA | Community Reinvestment Act | ||||
| CRE | Commercial Real Estate | ||||
| EAR | Earnings at Risk | ||||
| ERC | Enterprise Risk Committee of the Corporation's Board of Directors | ||||
| Exchange Act | Securities Exchange Act of 1934, as amended | ||||
| FASB | Financial Accounting Standards Board | ||||
| FDIC | Federal Deposit Insurance Corporation | ||||
| Federal Reserve | Board of Governors of the Federal Reserve System | ||||
| FFELP | Federal Family Education Loan Program | ||||
| FHLB | Federal Home Loan Bank | ||||
| FHLMC | Federal Home Loan Mortgage Corporation | ||||
| FICO | Fair Isaac Corporation, provider of a broad-based risk score to aid in credit decisions | ||||
| FNMA | Federal National Mortgage Association | ||||
| FTEs | Full-time equivalent employees | ||||
| FTP | Funds Transfer Pricing | ||||
| GAAP | Generally Accepted Accounting Principles | ||||
| GNMA | Government National Mortgage Association | ||||
| GSE | Government-Sponsored Enterprise | ||||
| HTM | Held to Maturity | ||||
| LTV | Loan-to-Value | ||||
| Merger Agreement | Agreement and Plan of Merger dated November 30, 2025 | ||||
| Moody's | Moody’s Investors Service | ||||
| MSRs | Mortgage Servicing Rights | ||||
| MVE | Market Value of Equity | ||||
| NAV | Net Asset Value measured at fair value per share (or its equivalent) as a practical expedient | ||||
| Net Free Funds | Noninterest-bearing sources of funds | ||||
| NPAs | Nonperforming Assets | ||||
| OCI | Other Comprehensive Income | ||||
3
| OREO | Other Real Estate Owned | ||||
| Parent Company | Associated Banc-Corp individually | ||||
| PCD | Purchased Credit-Deteriorated | ||||
| PSL | Purchased Seasoned Loans | ||||
| QTD | Quarter-to-date | ||||
| RAP | Retirement Account Plan - the Corporation's noncontributory defined benefit retirement plan | ||||
| Repurchase Agreements | Securities sold under agreements to repurchase | ||||
| Restricted Stock Awards | Restricted common stock and restricted common stock units to certain key employees | ||||
| Retirement Eligible Colleagues | Colleagues whose retirement meets the early retirement or normal retirement definitions under the applicable equity compensation plan | ||||
| Rev Loan(s) | Revolving loans | ||||
| SBA | Small Business Administration | ||||
| SEC | U.S. Securities and Exchange Commission | ||||
| Series E Preferred Stock | The Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series E, liquidation preference $1,000 per share | ||||
| Series F Preferred Stock | The Corporation's 5.625% Non-Cumulative Perpetual Preferred Stock, Series F, liquidation preference $1,000 per share | ||||
| SOFR | Secured Overnight Finance Rate | ||||
| YTD | Year-to-Date | ||||
4
Table of Contents
| PART I - FINANCIAL INFORMATION | |||||
| ITEM 1. | Financial Statements: | ||||
ASSOCIATED BANC-CORP
Consolidated Balance Sheets
| Jun 30, 2026 | Dec 31, 2025 | |||||||
(in thousands, except share and per share data) | (Unaudited) | (Audited) | ||||||
| Assets | ||||||||
| Cash and due from banks | $ | $ | ||||||
| Interest-bearing deposits in other financial institutions | ||||||||
| Federal funds sold and securities purchased under agreements to resell | ||||||||
| AFS investment securities, net, at fair value | ||||||||
| HTM investment securities, net, at amortized cost | ||||||||
| Equity securities | ||||||||
| Regulatory stocks, at cost | ||||||||
| Residential loans held for sale | ||||||||
| Commercial loans held for sale | ||||||||
| Loans | ||||||||
| Allowance for loan losses | ( | ( | ||||||
| Loans, net | ||||||||
| Tax credit and other investments | ||||||||
| Premises and equipment, net | ||||||||
| Bank and corporate owned life insurance | ||||||||
| Goodwill | ||||||||
| Other intangible assets, net | ||||||||
| Mortgage servicing rights, net | ||||||||
| Interest receivable | ||||||||
| Other assets | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities and stockholders' equity | ||||||||
| Noninterest-bearing demand deposits | $ | $ | ||||||
| Interest-bearing deposits | ||||||||
| Total deposits | ||||||||
| Federal funds purchased and securities sold under agreements to repurchase | ||||||||
| FHLB advances | ||||||||
| Senior and subordinated debt | ||||||||
| Allowance for unfunded commitments | ||||||||
| Accrued expenses and other liabilities | ||||||||
| Total liabilities | $ | $ | ||||||
| Stockholders' equity | ||||||||
| Preferred equity | $ | $ | ||||||
| Common equity | ||||||||
| Common stock | $ | $ | ||||||
| Surplus | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||
| Treasury stock, at cost | ( | ( | ||||||
| Total common equity | ||||||||
| Total stockholders' equity | ||||||||
| Total liabilities and stockholders' equity | $ | $ | ||||||
Preferred shares authorized (par value $ | ||||||||
| Preferred shares issued and outstanding | ||||||||
Common shares authorized (par value $ | ||||||||
| Common shares issued | ||||||||
| Common shares outstanding | ||||||||
See accompanying notes to consolidated financial statements.
5
Table of Contents
Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Income (Unaudited)
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | ||||||||||||||||
(in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Interest income | |||||||||||||||||
| Interest and fees on loans | $ | $ | $ | $ | |||||||||||||
| Interest and dividends on investment securities | |||||||||||||||||
| Taxable | |||||||||||||||||
| Tax-exempt | |||||||||||||||||
| Other interest | |||||||||||||||||
| Total interest income | |||||||||||||||||
| Interest expense | |||||||||||||||||
| Interest on deposits | |||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | |||||||||||||||||
| Interest on FHLB advances | |||||||||||||||||
| Interest on senior and subordinated debt | |||||||||||||||||
| Interest on other interest-bearing liabilities | |||||||||||||||||
| Total interest expense | |||||||||||||||||
| Net interest income | |||||||||||||||||
| Provision for credit losses | |||||||||||||||||
| Net interest income after provision for credit losses | |||||||||||||||||
| Noninterest income | |||||||||||||||||
| Wealth management fees | |||||||||||||||||
| Service charges and deposit account fees | |||||||||||||||||
| Card-based fees | |||||||||||||||||
| Other fee-based revenue | |||||||||||||||||
| Capital markets, net | |||||||||||||||||
| Mortgage banking, net | |||||||||||||||||
| Loss on mortgage portfolio sale | ( | ||||||||||||||||
| Bank and corporate owned life insurance | |||||||||||||||||
| Asset gains (losses), net | ( | ( | |||||||||||||||
| Investment securities gains, net | |||||||||||||||||
| Other | |||||||||||||||||
| Total noninterest income | |||||||||||||||||
| Noninterest expense | |||||||||||||||||
| Personnel | |||||||||||||||||
| Technology | |||||||||||||||||
| Occupancy | |||||||||||||||||
| Business development and advertising | |||||||||||||||||
| Equipment | |||||||||||||||||
| Legal and professional | |||||||||||||||||
| Loan and foreclosure costs | |||||||||||||||||
| FDIC assessment | |||||||||||||||||
| Other intangible amortization | 4,405 | ||||||||||||||||
| Other | |||||||||||||||||
| Total noninterest expense | |||||||||||||||||
| Income before income taxes | |||||||||||||||||
| Income tax expense | |||||||||||||||||
| Net income | |||||||||||||||||
| Preferred stock dividends | |||||||||||||||||
| Net income available to common equity | $ | $ | $ | $ | |||||||||||||
| Earnings per common share | |||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||
| Average common shares outstanding | |||||||||||||||||
| Basic | |||||||||||||||||
| Diluted | |||||||||||||||||
Numbers may not recalculate due to rounding conventions.
See accompanying notes to consolidated financial statements.
6
Table of Contents
Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Comprehensive Income (Unaudited)
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net income | $ | $ | $ | $ | ||||||||||
| Other comprehensive (loss) income, net of tax | ||||||||||||||
| Investment securities | ||||||||||||||
| Net unrealized (losses) gains | ( | ( | ||||||||||||
| Amortization of net unrealized losses on AFS securities transferred to HTM securities | ||||||||||||||
| Income tax benefit (expense) | ( | ( | ||||||||||||
| Other comprehensive (loss) income on investment securities | ( | ( | ||||||||||||
| Cash flow hedge derivatives | ||||||||||||||
| Net unrealized (losses) gains | ( | ( | ||||||||||||
| Reclassification adjustment for net (gains) losses realized in net income | ( | ( | ||||||||||||
| Income tax (expense) benefit | ( | ( | ||||||||||||
| Other comprehensive (loss) income on cash flow hedge derivatives | ( | ( | ||||||||||||
| Defined benefit pension and postretirement obligations | ||||||||||||||
| Amortization of prior service cost | ( | ( | ( | ( | ||||||||||
| Net actuarial gain | ||||||||||||||
| Amortization of actuarial loss | ( | ( | ||||||||||||
| Income tax benefit (expense) | ( | |||||||||||||
| Other comprehensive (loss) income on pension and postretirement obligations | ( | ( | ( | |||||||||||
| Total other comprehensive (loss) income | ( | ( | ||||||||||||
| Comprehensive income | $ | $ | $ | $ | ||||||||||
Numbers may not recalculate due to rounding conventions.
See accompanying notes to consolidated financial statements.
7
Table of Contents
Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)
| (in thousands, except per share data) | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||
| Balance, December 31, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||
| Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
| Common stock issued: | |||||||||||||||||||||||
| Stock-based compensation plans, net | — | — | ( | — | — | ||||||||||||||||||
| Purchase of treasury stock, open market purchases | — | — | — | — | — | ( | ( | ||||||||||||||||
| Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
| Cash dividends: | |||||||||||||||||||||||
Common stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
| Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
| Balance, March 31, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||
| Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
| Common stock issued: | |||||||||||||||||||||||
| American National acquisition | — | — | — | — | |||||||||||||||||||
| Stock-based compensation plans, net | — | — | ( | — | — | ||||||||||||||||||
| Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
| Cash dividends: | |||||||||||||||||||||||
Common stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
| Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
| Balance, June 30, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
(a) Common stock dividends of $0.24
(b) Preferred stock dividends for Series E of $0.3671875 0.3515625
8
Table of Contents
| (in thousands, except per share data) | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | ||||||||||||||||
| Balance, December 31, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | ||||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
| Common stock issued: | |||||||||||||||||||||||
| Public common stock offering | — | — | ( | — | — | — | ( | ||||||||||||||||
| Stock-based compensation plans, net | — | — | ( | — | — | ||||||||||||||||||
| Purchase of treasury stock, open market purchases | — | — | — | — | — | ( | ( | ||||||||||||||||
| Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
| Cash dividends: | |||||||||||||||||||||||
Common stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
| Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
| Balance, March 31, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | ||||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
| Common stock issued: | |||||||||||||||||||||||
| Stock-based compensation plans, net | — | — | — | — | ( | ||||||||||||||||||
| Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | ( | ( | ||||||||||||||||
| Cash dividends: | |||||||||||||||||||||||
Common stock(a) | — | — | — | ( | — | — | ( | ||||||||||||||||
Preferred stock(b) | — | — | — | ( | — | — | ( | ||||||||||||||||
| Stock-based compensation expense, net | — | — | — | — | — | ||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||
(a) Common stock dividends of $
(b) Preferred stock dividends for Series E of $0.3671875 0.3515625
See accompanying notes to consolidated financial statements.
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Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
| Six Months Ended Jun 30, | ||||||||
(in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Provision for credit losses | ||||||||
| Depreciation and amortization | ||||||||
| Change in MSRs valuation | ( | |||||||
| Amortization of other intangible assets | ||||||||
| Amortization and accretion on earning assets, funding, and other, net | ||||||||
| Net amortization of tax credit investments | ||||||||
| Loss on sales of investment securities, net | ||||||||
| Asset (gains) losses, net | ( | |||||||
| Loss (gain) on mortgage banking activities, net | ( | |||||||
| Loss on mortgage portfolio sale | ||||||||
| Net periodic pension benefit | ( | ( | ||||||
| Mortgage loans originated for sale | ( | ( | ||||||
| Proceeds from sales of mortgage loans held for sale | ||||||||
| Changes in certain assets and liabilities: | ||||||||
| Increase in interest receivable | ( | ( | ||||||
| Increase in BOLI/COLI cash surrender value | ( | ( | ||||||
| Decrease in net income tax position | ||||||||
| Increase (decrease) in interest payable | ( | |||||||
| Decrease in expense payable | ( | ( | ||||||
| Decrease (increase) in net derivative position | ( | |||||||
| Net change in other assets and other liabilities | ( | |||||||
| Net cash provided by operating activities | ||||||||
| Cash flows from investing activities | ||||||||
| Net increase in loans | ( | ( | ||||||
| Purchases of: | ||||||||
| AFS securities | ( | ( | ||||||
| HTM securities | ( | |||||||
| Regulatory stocks and equity securities | ( | ( | ||||||
| Proceeds from: | ||||||||
| Sales of AFS securities | ||||||||
| Sales of HTM securities | ||||||||
| Sales of regulatory stocks and equity securities | ||||||||
| Prepayments, calls, and maturities of AFS securities | ||||||||
| Prepayments, calls, and maturities of HTM securities | ||||||||
| Sales, prepayments, calls, and maturities of other assets | ||||||||
| Sale of mortgage portfolio | ||||||||
| Premises, equipment, and software | ( | ( | ||||||
| Net change in tax credit and alternative investments | ( | ( | ||||||
| Net cash received from the American National acquisition | ||||||||
| Net cash used in investing activities | ( | ( | ||||||
| Cash flows from financing activities | ||||||||
| Net decrease in deposits | ( | ( | ||||||
| Net increase (decrease) in short-term funding | ( | |||||||
| Net increase in short-term FHLB advances | ||||||||
| Repayment of long-term FHLB advances | ( | ( | ||||||
| Proceeds from long-term FHLB advances | ||||||||
| Repayment of finance lease principal | ( | |||||||
| Repayment of long-term funding | ( | |||||||
| Proceeds from issuance of common stock for stock-based compensation plans | ||||||||
| Purchase of treasury stock, open market purchases | ( | ( | ||||||
| Purchase of treasury stock, stock-based compensation plans | ( | ( | ||||||
| Cash dividends on common stock | ( | ( | ||||||
| Cash dividends on preferred stock | ( | ( | ||||||
| Payments for other financing activities | ( | |||||||
| Net cash provided by financing activities | ||||||||
| Net increase in cash and cash equivalents | ||||||||
| Cash and cash equivalents at beginning of period | ||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||
Numbers may not recalculate due to rounding conventions.
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ASSOCIATED BANC-CORP
Consolidated Statements of Cash Flows
| Six Months Ended Jun 30, | ||||||||
(in thousands) | 2026 | 2025 | ||||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid for interest | $ | $ | ||||||
| Issuance of common stock as consideration for the American National acquisition | ||||||||
| Assets acquired from the American National acquisition | ||||||||
| Liabilities assumed from the American National acquisition | ||||||||
See accompanying notes to consolidated financial statements.
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Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Notes to Consolidated Financial Statements
These interim consolidated financial statements have been prepared according to the rules and regulations of the SEC and, therefore, certain information and footnote disclosures normally presented in accordance with GAAP have been omitted or abbreviated. The information contained on the consolidated financial statements and footnotes in Associated Banc-Corp's 2025 Annual Report on Form 10-K should be referred to in connection with the reading of these unaudited interim consolidated financial statements.
Note 1 Basis of Presentation
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and comprehensive income, changes in stockholders’ equity, and cash flows of the Corporation for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. The determination of the ACLL is particularly susceptible to significant change. Management has evaluated subsequent events for potential recognition or disclosure.
Within the tables presented, certain columns and rows may not recalculate due to the use of rounded numbers for disclosure purposes.
Note 2 Summary of Significant Accounting Policies
The accounting and reporting policies of the Corporation conform to U.S. GAAP and to general practice within the financial services industry. A discussion of these policies can be found in Note 1 Summary of Significant Accounting Policies included in the Corporation’s 2025 Annual Report on Form 10-K, except for new accounting pronouncements adopted, as discussed below.
New Accounting Pronouncements Adopted
| Standard | Description | Date of Adoption | Effect on Financial Statements | ||||||||
| ASU 2025-08 Financial Instruments-Credit Losses (Topic 326) | The amendments in this update expand the gross-up approach for initial recognition and measurement of acquired financial assets to purchased seasoned loans. | Early adopted effective April 1, 2026 on a prospective basis, as permitted by the standard | The Corporation early adopted this standard and applied it in the purchase accounting for the acquisition of American National. The ASU expands the gross-up approach to certain acquired non-PCD loans that qualify as purchased seasoned loans, including loans acquired in a business combination, resulting in the acquisition-date allowance for credit losses being added to the loans’ initial amortized cost basis rather than recognized as a Day 1 provision for credit losses. Refer to Note 3 for additional information. | ||||||||
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Future Accounting Pronouncements
The expected impact of applicable material accounting pronouncements recently issued or proposed but not yet required to be adopted are discussed in the table below. To the extent that the adoption of new accounting standards materially affects the Corporation's financial condition, results of operations, liquidity or disclosures, the impacts are discussed in the applicable sections of this financial review.
| Standard | Description | Date of Anticipated Adoption | Effect on Financial Statements | ||||||||
| ASU 2024-03 Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) | The amendments in this update require a public business entity to disclose specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information about a public business entity's expenses to help investors (a) better understand the entity's performance, (b) better assess the entity's prospects for future cash flows, and (c) compare an entity's performance over time and with that of other entities. | Annual period ending December 31, 2027 and subsequent interim periods | The Corporation is currently evaluating the impact on its disclosures. | ||||||||
| ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) | The amendments in this update simplify the capitalization guidance by removing all references to prescriptive and sequential software development stages to align with the shift to incremental and iterative software development methods. | Interim period ending March 31, 2028 and subsequent periods | The Corporation is currently evaluating the impact on its disclosures. | ||||||||
Note 3 Business Combinations
On April 1, 2026 , the Corporation completed its previously announced acquisition of American National pursuant to the terms of the Merger Agreement by and between the Corporation and American National.
At the effective time of the merger, 100 % of the outstanding shares of voting common stock and non-voting common stock of American National outstanding immediately prior to the effective time of the merger, other than certain shares held by the Corporation or American National, were converted into the right to receive an aggregate 22,975,382 shares of common stock of the Corporation. This represented 36.250 shares of the Corporation's common stock for each share of outstanding common stock of American National, with cash paid in lieu of fractional shares. Total consideration for the acquisition was $594.1 million valued at the acquisition date fair value of $25.86 per share.
The acquisition of American National has been accounted for as a business combination using the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations. Accordingly, assets acquired and liabilities assumed were recorded at fair value as of the acquisition date. Fair value estimates related to the assets and liabilities from American National are subject to adjustment for up to one year after the closing date of the acquisition as additional information becomes available. The purchase consideration allocation is considered preliminary as certain estimates related to the assets acquired and liabilities assumed are subject to continuing refinement. Valuations subject to refinement include, but are not limited to, loans, certain deposits, certain other assets, and the core deposit intangible asset.
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The following table presents the estimated fair values of the assets acquired and liabilities assumed as of the effective date of the American National acquisition.
| (in thousands) | ||||||||
| Total Consideration | $ | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | |||||||
| Investment securities | ||||||||
| Loans, net | ||||||||
Other intangible assets(a) | ||||||||
| Other assets | ||||||||
| Total assets | $ | |||||||
| Liabilities | ||||||||
| Deposits | $ | |||||||
| Other liabilities | ||||||||
| Total liabilities | $ | |||||||
| Fair value of net assets acquired | $ | |||||||
| Goodwill | $ | |||||||
(a) Core deposit intangibles | ||||||||
The goodwill arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Corporation with the former operations of American National. None of the goodwill is deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange.
The Corporation engaged an independent, third-party valuation specialist to assist in the valuation of certain assets acquired and liabilities assumed from the business combination. The following valuation techniques were used in the valuation:
Investment securities: The fair value of AFS investment securities and equity securities was determined utilizing quoted prices in an active market, if available, or an external third party broker opinion of the market value.
Loans, net: Fair values of loans were based on a discounted cash flow methodology that considered factors including the type of loan, related collateral, credit quality status, fixed or variable interest rate, term of loan, amortization status and current discount rates. For the non-credit (interest and liquidity) premium, loans were grouped together according to similar characteristics when applying various valuation techniques. For the credit discount, loans were also grouped based on whether they had more than insignificant deterioration in credit since origination. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered purchase credit deteriorated (PCD) assets. All other loans acquired were deemed purchased seasoned loans (non-PCD). The initial estimate of expected credit losses, excluding credit card loans, was recognized in the ACLL on the date of acquisition using the same methodology as other loans and leases held-for-investment.
The following table includes the fair value and unpaid principal balance of the acquired loans and leases:
Investment securities: The fair value of AFS investment securities and equity securities was determined utilizing quoted prices in an active market, if available, or an external third party broker opinion of the market value.
Loans, net: Fair values of loans were based on a discounted cash flow methodology that considered factors including the type of loan, related collateral, credit quality status, fixed or variable interest rate, term of loan, amortization status and current discount rates. For the non-credit (interest and liquidity) premium, loans were grouped together according to similar characteristics when applying various valuation techniques. For the credit discount, loans were also grouped based on whether they had more than insignificant deterioration in credit since origination. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered purchase credit deteriorated (PCD) assets. All other loans acquired were deemed purchased seasoned loans (non-PCD). The initial estimate of expected credit losses, excluding credit card loans, was recognized in the ACLL on the date of acquisition using the same methodology as other loans and leases held-for-investment.
| (in thousands) | Unpaid principal balance | Premium (Discount) | Loans and leases | Allowance for credit losses on loans | Loans and leases, net | ||||||||||||
| Non-PCD loans | $ | $ | $ | $ | ( | $ | |||||||||||
| PCD Loans | ( | ( | |||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | $ | ||||||||||
Core Deposit Intangibles: This intangible asset represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds, and the interest costs associated with customer deposits. The CDIs will be amortized utilizing the sum of years digits basis.
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Time Deposits: The fair value for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits.
The Corporation's operating results include operating results from American National for the three months ended June 30, 2026. Due to the integration of operating activities into those of the Corporation, bifurcation and reporting of revenues and net income from the former American National operations is impracticable. In addition, such amounts would require significant estimates related to the proper allocation of merger cost savings that cannot be objectively made. The following table presents merger related costs, and the line item that these costs are included in on the consolidated statement of income, for the three and six months ended June 30, 2026. Additional transaction and integration costs will be expensed in future periods as incurred.
| (in thousands) | Three Months Ended June 30, 2026 | Six Months Ended Jun 30, 2026 | ||||||
| Personnel | $ | $ | ||||||
| Technology | ||||||||
| Occupancy | ||||||||
| Business development and advertising | ||||||||
| Equipment | ||||||||
| Legal and professional | ||||||||
| Other | ||||||||
| Total | $ | $ | ||||||
Pro Forma Financial Information
The following unaudited pro forma summary presents consolidated information of the Corporation as if the American National acquisition had occurred on January 1, 2025. The amounts do not reflect anticipated operating cost savings, revenue enhancements, or other synergies expected to result from the acquisition. Actual results may differ from the unaudited pro forma information presented.
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (Unaudited) (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net interest income and noninterest income | $ | $ | $ | $ | ||||||||||
| Net income | ||||||||||||||
Note 4 Earnings Per Common Share
Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock awards). Presented below are the calculations for basic and diluted earnings per common share:
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| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net income | $ | $ | $ | $ | ||||||||||
| Preferred stock dividends | ( | ( | ( | ( | ||||||||||
| Net income available to common equity | ||||||||||||||
| Common shareholder dividends | ( | ( | ( | ( | ||||||||||
| Unvested share-based payment awards | ( | ( | ( | ( | ||||||||||
| Undistributed earnings | $ | $ | $ | $ | ||||||||||
| Undistributed earnings allocated to common shareholders | $ | $ | $ | $ | ||||||||||
| Undistributed earnings allocated to unvested share-based payment awards | ||||||||||||||
| Undistributed earnings | $ | $ | $ | $ | ||||||||||
| Basic | ||||||||||||||
| Distributed earnings to common shareholders | $ | $ | $ | $ | ||||||||||
| Undistributed earnings allocated to common shareholders | ||||||||||||||
| Total common shareholders earnings, basic | $ | $ | $ | $ | ||||||||||
| Diluted | ||||||||||||||
| Distributed earnings to common shareholders | $ | $ | $ | $ | ||||||||||
| Undistributed earnings allocated to common shareholders | ||||||||||||||
| Total common shareholders earnings, diluted | $ | $ | $ | $ | ||||||||||
| Weighted average common shares outstanding | ||||||||||||||
| Effect of dilutive common stock awards | ||||||||||||||
| Diluted weighted average common shares outstanding | ||||||||||||||
| Basic earnings per common share | $ | $ | $ | $ | ||||||||||
| Diluted earnings per common share | $ | $ | $ | $ | ||||||||||
Excluded from the earnings per common share calculations were nominal1.4 million anti-dilutive common stock options for the three months ended June 30, 2026 and 2025, respectively, and nominal1.2 million anti-dilutive common stock options for the six months ended June 30, 2026 and 2025, respectively.
Note 5 Stock-Based Compensation
The fair values of stock options and restricted stock are amortized as compensation expense on a straight-line basis over the vesting period of the grants. For colleagues who meet the definition of retirement eligible under the 2020 Incentive Compensation Plan and 2025 Equity Incentive Plan (collectively, the Incentive Plans), expenses related to stock options and restricted stock grants are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense on the consolidated statements of income.
A summary of the Corporation’s stock option activity for the six months ended June 30, 2026 is presented below:
(a) In thousands
| Stock Options | Shares(a) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value(a) | ||||||||||
| Outstanding at December 31, 2025 | $ | $ | ||||||||||||
| Exercised | ||||||||||||||
| Outstanding at June 30, 2026 | $ | $ | ||||||||||||
| Options Exercisable at June 30, 2026 | $ | $ | ||||||||||||
Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. For the six months ended June 30, 2026, the intrinsic value of stock options exercised was $2.3 million, compared to $0.4 million for the six months ended June 30, 2025. All stock options were vested as of December 31, 2025.
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The Corporation has issued service-based and performance-based restricted stock grants, in the form of awards and units, under the Incentive Plans. Service-based awards are contingent upon continued employment or meeting the requirements for retirement. Performance-based awards are based on performance goals determined by the Compensation and Benefits Committee of the Corporation's Board of Directors, with vesting ranging from a minimum of 0 % to a maximum of 150 % of the target award. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date.
The following table summarizes information about the Corporation’s restricted stock activity for the six months ended June 30, 2026:
| Restricted Stock | Shares(a) | Weighted Average Grant Date Fair Value | ||||||
| Outstanding at December 31, 2025 | $ | |||||||
| Granted | ||||||||
| Vested | ||||||||
| Forfeited | ||||||||
| Outstanding at June 30, 2026 | $ | |||||||
(a) In thousands
The Corporation amortizes the expense related to restricted stock awards as compensation expense over the vesting period specified in the grant's award agreement. Performance-based restricted stock granted during 2025 and 2026 will cliff-vest after the three year performance period has ended. Service-based restricted stock granted during 2025 and 2026 will generally vest ratably over a period of four years 11.2 million and $11.3 million was recorded for the six months ended June 30, 2026 and June 30, 2025, respectively. Included in compensation expense for the accelerated vesting of restricted stock granted to retirement eligible colleagues was $4.2 million and $4.4 million of expense in the first six months of 2026 and 2025, respectively. The Corporation had $28.1 million of unrecognized compensation costs related to restricted stock at June 30, 2026 that are expected to be recognized over the remaining requisite service periods that extend through the first quarter of 2030 .
The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock. The Board of Directors has authorized management to repurchase shares of the Corporation’s common stock, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares, if any, will be based on market and investment opportunities, capital levels, growth prospects, and regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities.
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Note 6 Investment Securities
Investment securities are designated as AFS, HTM, or equity on the consolidated balance sheets. The amortized cost and fair values of AFS and HTM securities at June 30, 2026 were as follows:
| (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
| AFS investment securities | ||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | $ | $ | $ | ( | $ | |||||||||
| Residential mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Asset backed securities: | ||||||||||||||
| FFELP | ( | |||||||||||||
| SBA | ( | |||||||||||||
Other debt securities(a) | ( | |||||||||||||
| Total AFS investment securities | $ | $ | $ | ( | $ | |||||||||
| HTM investment securities | ||||||||||||||
| U.S. Treasury securities | $ | $ | $ | $ | ||||||||||
| Obligations of state and political subdivisions (municipal securities) | ( | |||||||||||||
| Residential mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Private-label | ( | |||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Total HTM investment securities | $ | $ | $ | ( | $ | |||||||||
(a)Unrealized losses includes allowance for credit losses
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The amortized cost and fair values of AFS and HTM securities at December 31, 2025 were as follows:
| (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
| AFS investment securities | ||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | $ | $ | $ | ( | $ | |||||||||
| Residential mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Asset backed securities: | ||||||||||||||
| FFELP | ( | |||||||||||||
| SBA | ( | |||||||||||||
| Other debt securities | ( | |||||||||||||
| Total AFS investment securities | $ | $ | $ | ( | $ | |||||||||
| HTM investment securities | ||||||||||||||
| U.S. Treasury securities | $ | $ | $ | $ | ||||||||||
| Obligations of state and political subdivisions (municipal securities) | ( | |||||||||||||
| Residential mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Private-label | ( | |||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ( | |||||||||||||
| GNMA | ( | |||||||||||||
| Total HTM investment securities | $ | $ | $ | ( | $ | |||||||||
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of AFS and HTM securities at June 30, 2026, are shown below:
| AFS | HTM | |||||||||||||
| (in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
| Due in one year or less | $ | $ | $ | $ | ||||||||||
| Due after one year through five years | ||||||||||||||
| Due after five years through ten years | ||||||||||||||
| Due after ten years | ||||||||||||||
| Total municipal, U.S. Treasury and other debt securities | ||||||||||||||
| Residential mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ||||||||||||||
| GNMA | ||||||||||||||
| Private-label | ||||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||
| FNMA/FHLMC | ||||||||||||||
| GNMA | ||||||||||||||
| Asset backed securities: | ||||||||||||||
| FFELP | ||||||||||||||
| SBA | ||||||||||||||
| Total investment securities | $ | $ | $ | $ | ||||||||||
| Ratio of fair value to amortized cost | % | % | ||||||||||||
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The following table summarizes gross realized gains and losses on AFS securities, the gain or loss on sale and fair value adjustment of equity securities, and proceeds from the sale of AFS investment securities:
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Gross losses on HTM securities | $ | $ | $ | ( | $ | |||||||||
| Fair value adjustment of equity securities | ||||||||||||||
| Investment securities (losses) gains, net | $ | $ | $ | $ | ||||||||||
Investment securities with a carrying value of $1.0 billion at June 30, 2026 and $1.2 billion December 31, 2025, respectively, were pledged as required to secure certain deposits or for other purposes.
Accrued interest receivable on HTM securities totaled $17.2 million and $17.7 million at June 30, 2026 and December 31, 2025, respectively. Accrued interest receivable on AFS securities totaled $25.1 million and $23.0 million at June 30, 2026 and December 31, 2025, respectively. Accrued interest receivable on both HTM and AFS securities is included in interest receivable on the consolidated balance sheets.
The Corporation holds U.S. Treasury, municipal, and mortgage-related securities issued by the U.S. government or a GSE which are backed by the full faith and credit of the U.S. government and private-label residential mortgage-related securities that have credit enhancement which covers the first 16% of losses and, as a result, no
There was a nominal allowance for credit losses on HTM securities at June 30, 2026 and $0.1 million at December 31, 2025, attributable entirely to the Corporation's municipal securities, included in HTM investment securities, net, at amortized cost on the consolidated balance sheets. The allowance for credit losses on AFS securities was $1.7 million at June 30, 2026 and zero at December 31, 2025, attributable to a corporate bond acquired through the recent acquisition of American National, included in other debt securities and AFS investment securities, net, at fair value on the consolidated balance sheets.
The following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at June 30, 2026:
(a)Unrealized losses includes allowance for credit losses
| Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
| (in thousands) | Number of Securities | Unrealized Losses | Fair Value | Number of Securities | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | ||||||||||||||||||
| AFS investment securities | ||||||||||||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Residential mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ( | |||||||||||||||||||||||
| GNMA | ( | ( | ( | |||||||||||||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ( | |||||||||||||||||||||||
| GNMA | ( | ( | ||||||||||||||||||||||||
| Asset backed securities: | ||||||||||||||||||||||||||
| FFELP | ( | ( | ( | |||||||||||||||||||||||
| SBA | ( | ( | ( | |||||||||||||||||||||||
Other debt securities(a) | ( | ( | ||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| HTM investment securities | ||||||||||||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Residential mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ( | |||||||||||||||||||||||
| GNMA | ( | ( | ( | |||||||||||||||||||||||
| Private-label | ( | ( | ||||||||||||||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ( | |||||||||||||||||||||||
| GNMA | ( | ( | ||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
20
Table of Contents
For comparative purposes, the following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2025:
| Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
| (in thousands) | Number of Securities | Unrealized Losses | Fair Value | Number of Securities | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | ||||||||||||||||||
| AFS investment securities | ||||||||||||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||
| Residential mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ( | |||||||||||||||||||||||
| GNMA | ( | ( | ( | |||||||||||||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ||||||||||||||||||||||||
| GNMA | ( | ( | ||||||||||||||||||||||||
| Asset backed securities: | ||||||||||||||||||||||||||
| FFELP | ( | ( | ( | |||||||||||||||||||||||
| SBA | ( | ( | ||||||||||||||||||||||||
| Other debt securities | ( | ( | ||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| HTM investment securities | ||||||||||||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Residential mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ||||||||||||||||||||||||
| GNMA | ( | ( | ||||||||||||||||||||||||
| Private-label | ( | ( | ||||||||||||||||||||||||
| Commercial mortgage-related securities: | ||||||||||||||||||||||||||
| FNMA/FHLMC | ( | ( | ( | |||||||||||||||||||||||
| GNMA | ( | ( | ||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||
On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The Company monitors the credit quality of HTM securities through credit ratings provided by S&P and Moody’s. Investment grade securities are rated BBB- or higher by S&P, or Baa3 or higher by Moody’s, and are generally considered by the rating agencies and market participants to be of low credit risk. As of June 30, 2026 and December 31, 2025, the Corporation's HTM portfolio contained all investment grade securities except for securities that were not rated which were individually reviewed noting no credit quality issues.
Based on the Corporation’s evaluation, management does not believe any unrealized losses at June 30, 2026 represent credit deterioration as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions, except as disclosed above. As of June 30, 2026, the Corporation does not intend to sell, nor does it believe that it will be required to sell, the securities in an unrealized loss position before recovery of their amortized cost basis.
Regulatory stocks: The Corporation had FHLB stock of $215.0 million and $154.4 million at June 30, 2026 and December 31, 2025, respectively. The Corporation had Federal Reserve Bank stock of $114.4 million and $98.1 million at June 30, 2026 and December 31, 2025, respectively.
Accrued interest receivable on FHLB stock totaled $4.1 million at June 30, 2026 and $2.8 million at December 31, 2025. There was no accrued interest receivable on Federal Reserve Bank Stock at both June 30, 2026 and December 31, 2025. Accrued interest receivable on both FHLB stock and Federal Reserve Bank stock is included in interest receivable on the consolidated balance sheets.
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Equity Securities
Equity securities with readily determinable fair values: The Corporation's portfolio of equity securities with readily determinable fair values is primarily comprised of mutual funds. The Corporation had equity securities with readily determinable fair values of $15.0 million and $11.1 million at June 30, 2026 and December 31, 2025, respectively.
Note 7 Loans
The period end loan composition was as follows:
| (in thousands) | Jun 30, 2026 | Dec 31, 2025 | ||||||
| Commercial and industrial | $ | $ | ||||||
| Commercial real estate — owner occupied | ||||||||
| Commercial and business lending | ||||||||
| Commercial real estate — investor | ||||||||
| Real estate construction | ||||||||
| Commercial real estate lending | ||||||||
| Total commercial | ||||||||
| Residential mortgage | ||||||||
| Auto finance | ||||||||
| Home equity | ||||||||
| Other consumer | ||||||||
| Total consumer | ||||||||
| Total loans | $ | $ | ||||||
Accrued interest receivable on loans totaled $135.4 million at June 30, 2026 and $117.6 million at December 31, 2025, and is included in interest receivable on the consolidated balance sheets. The amount of accrued interest reversed was $0.4 million for the three months ended June 30, 2026 and $0.8 million for the six months ended June 30, 2026, compared to $0.5 million for the three months ended June 30, 2025 and $1.1 million for the six months ended June 30, 2025.
22
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The following table presents loans by credit quality indicator by origination year at June 30, 2026:
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
| (in thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | YTD 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | ||||||||||||||||||||
| Commercial and industrial: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial real estate - owner occupied: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial real estate - owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial and business lending: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial and business lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial real estate - investor: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial real estate - investor | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Real estate construction: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Real estate construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial real estate lending: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial real estate lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Total commercial: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
23
Table of Contents
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
| (in thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | YTD 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | ||||||||||||||||||||
| Residential mortgage: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Auto finance: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Auto finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Home equity: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Home equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Other consumer: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Other consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Total consumer: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Total loans: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination.
24
Table of Contents
The following table presents loans by credit quality indicator by origination year at December 31, 2025:
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
| (in thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | ||||||||||||||||||||
| Commercial and industrial: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial real estate - owner occupied: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial real estate - owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial and business lending: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial and business lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial real estate - investor: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial real estate - investor | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Real estate construction: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Real estate construction | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Commercial real estate lending: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Commercial real estate lending | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
25
Table of Contents
Term Loans Amortized Cost Basis by Origination Year(a) | |||||||||||||||||||||||||||||
| (in thousands) | Rev Loans Converted to Term(a) | Rev Loans Amortized Cost Basis | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | ||||||||||||||||||||
| Total commercial: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Residential mortgage: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Residential mortgage | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Auto finance: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Auto finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Home equity: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Home equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Other consumer: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Other consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Total consumer: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Total loans: | |||||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Nonaccrual | |||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination.
26
Table of Contents
The following table presents gross charge offs by origination year for the six months ended June 30, 2026:
| Gross Charge Offs by Origination Year | |||||||||||||||||||||||||||||
| (in thousands) | Rev Loans Amortized Cost Basis | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | |||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Commercial real estate-owner occupied | |||||||||||||||||||||||||||||
| Commercial and business lending | |||||||||||||||||||||||||||||
| Commercial real estate-investor | |||||||||||||||||||||||||||||
| Real estate construction | |||||||||||||||||||||||||||||
| Commercial real estate lending | |||||||||||||||||||||||||||||
| Total commercial | |||||||||||||||||||||||||||||
| Residential mortgage | |||||||||||||||||||||||||||||
| Auto finance | |||||||||||||||||||||||||||||
| Home equity | |||||||||||||||||||||||||||||
| Other consumer | |||||||||||||||||||||||||||||
| Total consumer | |||||||||||||||||||||||||||||
| Total gross charge offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
The following table presents gross charge offs by origination year for the year ended December 31, 2025:
| Gross Charge Offs by Origination Year | |||||||||||||||||||||||||||||
| (in thousands) | Rev Loans Amortized Cost Basis | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Commercial real estate-owner occupied | |||||||||||||||||||||||||||||
| Commercial and business lending | |||||||||||||||||||||||||||||
| Commercial real estate-investor | |||||||||||||||||||||||||||||
| Real estate construction | |||||||||||||||||||||||||||||
| Commercial real estate lending | |||||||||||||||||||||||||||||
| Total commercial | |||||||||||||||||||||||||||||
| Residential mortgage | |||||||||||||||||||||||||||||
| Auto finance | |||||||||||||||||||||||||||||
| Home equity | |||||||||||||||||||||||||||||
| Other consumer | |||||||||||||||||||||||||||||
| Total consumer | |||||||||||||||||||||||||||||
| Total gross charge offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate policies for ACLL, nonaccrual loans, and charge offs.
For commercial loans, management has determined the pass credit quality indicator to include credits exhibiting acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits performing in accordance with the original contractual terms.
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit or in the credit position at some future date. Accruing loan modifications could be pass or special mention, depending on the risk rating on the loan. Substandard loans are considered inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness, or weaknesses, which may jeopardize liquidation of the debt, and are characterized by the distinct possibility the Corporation will sustain some loss if the deficiencies are not corrected. Commercial loan relationships over $0.5 million in nonaccrual status, or that otherwise do not share similar risk characteristics with other loans, including those for which a debt restructuring is probable, are evaluated individually for expected credit losses. Commercial loans classified as special mention, substandard, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass credits, which are performing rated credits, are generally reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted.
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The recorded investment of consumer loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $19.4 million and $20.1 million at June 30, 2026 and December 31, 2025, respectively.
The following table presents loans by past due status at June 30, 2026:
| Accruing | ||||||||||||||||||||
| (in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Nonaccrual(a)(b) | Total | ||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | $ | ||||||||||||||
| Commercial real estate - owner occupied | ||||||||||||||||||||
| Commercial and business lending | ||||||||||||||||||||
| Commercial real estate - investor | ||||||||||||||||||||
| Real estate construction | ||||||||||||||||||||
| Commercial real estate lending | ||||||||||||||||||||
| Total commercial | ||||||||||||||||||||
| Residential mortgage | ||||||||||||||||||||
| Auto finance | ||||||||||||||||||||
| Home equity | ||||||||||||||||||||
Other consumer(c) | ||||||||||||||||||||
| Total consumer | ||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | ||||||||||||||
(a) Of the total nonaccrual loans, $78.9 million, or 53 %, were current with respect to payment at June 30, 2026.
(b) No 18.2 million of nonaccrual loans for which there was no related ACLL at June 30, 2026.
(c) Past due portions exclude guaranteed student loans.
The following table presents loans by past due status at December 31, 2025:
| Accruing | ||||||||||||||||||||
| (in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Nonaccrual(a)(b) | Total | ||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | $ | ||||||||||||||
| Commercial real estate - owner occupied | ||||||||||||||||||||
| Commercial and business lending | ||||||||||||||||||||
| Commercial real estate - investor | ||||||||||||||||||||
| Real estate construction | ||||||||||||||||||||
| Commercial real estate lending | ||||||||||||||||||||
| Total commercial | ||||||||||||||||||||
| Residential mortgage | ||||||||||||||||||||
| Auto finance | ||||||||||||||||||||
| Home equity | ||||||||||||||||||||
Other consumer(c) | ||||||||||||||||||||
| Total consumer | ||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | ||||||||||||||
(a) Of the total nonaccrual loans, $31.2 million, or 31 %, were current with respect to payment at December 31, 2025.
(b) No interest income was recognized on nonaccrual loans for the year ended December 31, 2025. In addition, there were $14.6 million of nonaccrual loans for which there was no related ACLL at December 31, 2025
(c) Past due portions exclude guaranteed student loans.
Loan Modifications
The following tables show the composition of loan modifications made to borrowers experiencing financial difficulty by the loan portfolio and type of concessions granted. Each of the types of concessions granted comprised less than 1% of their respective classes of loan portfolios at June 30, 2026 and June 30, 2025.
| Interest Rate Concession | |||||||||||||||||
| Amortized Cost | |||||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | ||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Commercial and industrial | $ | $ | $ | $ | |||||||||||||
| Other consumer | |||||||||||||||||
| Total loans modified | $ | $ | $ | $ | |||||||||||||
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| Term Extension | |||||||||||||||||
| Amortized Cost | |||||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | ||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Residential mortgage | $ | $ | $ | $ | |||||||||||||
| Combination - Interest Rate Concession and Term Extension | ||||||||||||||
| Amortized Cost | ||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Residential mortgage | $ | $ | $ | $ | ||||||||||
| Home equity | ||||||||||||||
| Total loans modified | $ | $ | $ | $ | ||||||||||
The following tables summarize, by loan portfolio, the financial effect of the Corporation's loan modifications on the modified loans.
| Interest Rate Concession | ||||||||||||||
Financial Effect, Weighted Average Contractual Interest Rate (Decrease) Increase(a) | ||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| Loan Type | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Commercial and industrial | ( | % | ( | % | ( | % | ( | % | ||||||
| Residential mortgage | % | % | % | % | ||||||||||
| Home equity | ( | % | % | ( | % | ( | % | |||||||
| Other consumer | ( | % | ( | % | ( | % | ( | % | ||||||
| Weighted average of total loans modified | ( | % | ( | % | ( | % | ( | % | ||||||
(a) Some interest rate concessions may involve an increase in rate that was lower in comparison to prevailing market rates.
| Term Extension | ||||||||||||||
Financial Effect, Weighted Average Term Increase(a) | ||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| Loan Type | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Residential mortgage | ||||||||||||||
| Home equity | ||||||||||||||
| Weighted average of total loans modified | ||||||||||||||
The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the twelve months ended June 30, 2026:
| Payment Status (Amortized Cost Basis) | ||||||||||||||
| (in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | |||||||||||
| Commercial and industrial | $ | $ | $ | |||||||||||
| Residential mortgage | ||||||||||||||
| Home equity | ||||||||||||||
| Other consumer | ||||||||||||||
| Total loans modified | $ | $ | $ | |||||||||||
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The following table depicts the performance of loans that have been modified in the twelve months ended June 30, 2025:
| Payment Status (Amortized Cost Basis) | |||||||||||
| (in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | ||||||||
| Commercial and industrial | $ | $ | $ | ||||||||
| Residential mortgage | |||||||||||
| Home equity | |||||||||||
| Other consumer | |||||||||||
| Total loans modified | $ | $ | $ | ||||||||
The following table provides the amortized cost of loan modifications by loan portfolio and type of concession for loans that were modified in the previous twelve months and subsequently had a payment default during the six months ended June 30, 2026:
| Amortized Cost of Loan Modifications that Subsequently Defaulted | |||||||||||
| (in thousands) | Interest Rate Concession | Term Extension | Combination Interest Rate Reduction and Term Extension | ||||||||
| Residential mortgage | $ | $ | $ | ||||||||
None of the loans modified in the previous twelve months subsequently had a payment default during the six months ended June 30, 2025.
The nature and extent of the impairment of modified loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the ACLL.
Allowance for Credit Losses on Loans
The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The forecast the Corporation used for June 30, 2026 was the Moody's baseline scenario from May 2026, which was reviewed against the June 2026 baseline scenario with no material updates made, over a two-year reasonable and supportable period with straight-line reversion to the historical losses over the second year of the period. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 12 for additional information on the change in the allowance for unfunded commitments.
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The following table presents a summary of the changes in the ACLL by portfolio segment for the six months ended June 30, 2026:
| (in thousands) | Dec 31, 2025 | Provision for loan losses recorded at acquisition | Allowance for PCD loans acquired | Allowance for PSL acquired | Charge offs | Recoveries | Net (Charge offs) Recoveries | Provision for Credit Losses | Jun 30, 2026 | ACLL / Loans | |||||||||||||||||||||||||
| Allowance for loan losses | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
| Commercial real estate — owner occupied | — | ( | |||||||||||||||||||||||||||||||||
| Commercial and business lending | ( | ( | |||||||||||||||||||||||||||||||||
| Commercial real estate — investor | — | ( | ( | ( | |||||||||||||||||||||||||||||||
| Real estate construction | — | ||||||||||||||||||||||||||||||||||
| Commercial real estate lending | — | ( | ( | ( | |||||||||||||||||||||||||||||||
| Total commercial | ( | ( | |||||||||||||||||||||||||||||||||
| Residential mortgage | — | ( | ( | ||||||||||||||||||||||||||||||||
| Auto finance | — | ( | ( | ||||||||||||||||||||||||||||||||
| Home equity | — | ( | ( | ||||||||||||||||||||||||||||||||
| Other consumer | ( | ( | |||||||||||||||||||||||||||||||||
| Total consumer | ( | ( | |||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
| Allowance for unfunded commitments | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | — | $ | $ | $ | — | $ | — | $ | — | $ | ( | $ | |||||||||||||||||||||
| Commercial real estate — owner occupied | — | — | — | — | |||||||||||||||||||||||||||||||
| Commercial and business lending | — | — | — | — | ( | ||||||||||||||||||||||||||||||
| Commercial real estate — investor | — | — | — | — | |||||||||||||||||||||||||||||||
| Real estate construction | — | — | — | — | |||||||||||||||||||||||||||||||
| Commercial real estate lending | — | — | — | — | |||||||||||||||||||||||||||||||
| Total commercial | — | — | — | — | |||||||||||||||||||||||||||||||
| Home equity | — | — | — | — | |||||||||||||||||||||||||||||||
| Other consumer | — | — | — | — | ( | ||||||||||||||||||||||||||||||
| Total consumer | — | — | — | — | |||||||||||||||||||||||||||||||
| Total loans | $ | $ | — | $ | $ | $ | — | $ | — | $ | — | $ | $ | ||||||||||||||||||||||
| Allowance for credit losses on loans | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | % | |||||||||||||||||||||||
| Commercial real estate — owner occupied | — | ( | % | ||||||||||||||||||||||||||||||||
| Commercial and business lending | ( | ( | % | ||||||||||||||||||||||||||||||||
| Commercial real estate — investor | — | ( | ( | ( | % | ||||||||||||||||||||||||||||||
| Real estate construction | — | % | |||||||||||||||||||||||||||||||||
| Commercial real estate lending | — | ( | ( | % | |||||||||||||||||||||||||||||||
| Total commercial | ( | ( | % | ||||||||||||||||||||||||||||||||
| Residential mortgage | — | ( | ( | % | |||||||||||||||||||||||||||||||
| Auto finance | — | ( | ( | % | |||||||||||||||||||||||||||||||
| Home equity | — | ( | ( | % | |||||||||||||||||||||||||||||||
| Other consumer | ( | ( | % | ||||||||||||||||||||||||||||||||
| Total consumer | ( | ( | % | ||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | % | |||||||||||||||||||||||
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The following table presents a summary of the changes in the ACLL by portfolio segment for the year ended December 31, 2025:
| (in thousands) | Dec 31, 2024 | Charge offs | Recoveries | Net (Charge offs) Recoveries | Provision for Credit Losses | Dec 31, 2025 | ACLL / Loans | ||||||||||||||||||||||
| Allowance for loan losses | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||
| Commercial real estate — owner occupied | ( | ( | |||||||||||||||||||||||||||
| Commercial and business lending | ( | ( | |||||||||||||||||||||||||||
| Commercial real estate — investor | ( | ( | |||||||||||||||||||||||||||
| Real estate construction | ( | ||||||||||||||||||||||||||||
| Commercial real estate lending | ( | ( | ( | ||||||||||||||||||||||||||
| Total commercial | ( | ( | |||||||||||||||||||||||||||
| Residential mortgage | ( | ( | |||||||||||||||||||||||||||
| Auto finance | ( | ( | |||||||||||||||||||||||||||
| Home equity | ( | ( | |||||||||||||||||||||||||||
| Other consumer | ( | ( | |||||||||||||||||||||||||||
| Total consumer | ( | ( | |||||||||||||||||||||||||||
| Total loans | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||
| Allowance for unfunded commitments | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | — | $ | — | $ | — | $ | $ | ||||||||||||||||||||
| Commercial real estate — owner occupied | — | — | — | ( | |||||||||||||||||||||||||
| Commercial and business lending | — | — | — | ||||||||||||||||||||||||||
| Commercial real estate — investor | — | — | — | ( | |||||||||||||||||||||||||
| Real estate construction | — | — | — | ( | |||||||||||||||||||||||||
| Commercial real estate lending | — | — | — | ( | |||||||||||||||||||||||||
| Total commercial | — | — | — | ||||||||||||||||||||||||||
| Home equity | — | — | — | ( | |||||||||||||||||||||||||
| Other consumer | — | — | — | ||||||||||||||||||||||||||
| Total consumer | — | — | — | ||||||||||||||||||||||||||
| Total loans | $ | $ | — | $ | — | $ | — | $ | $ | ||||||||||||||||||||
| Allowance for credit losses on loans | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | ( | $ | $ | ( | $ | $ | % | ||||||||||||||||||||
| Commercial real estate — owner occupied | ( | ( | % | ||||||||||||||||||||||||||
| Commercial and business lending | ( | ( | % | ||||||||||||||||||||||||||
| Commercial real estate — investor | ( | ( | % | ||||||||||||||||||||||||||
| Real estate construction | ( | % | |||||||||||||||||||||||||||
| Commercial real estate lending | ( | ( | ( | % | |||||||||||||||||||||||||
| Total commercial | ( | ( | % | ||||||||||||||||||||||||||
| Residential mortgage | ( | ( | % | ||||||||||||||||||||||||||
| Auto finance | ( | ( | % | ||||||||||||||||||||||||||
| Home equity | ( | ( | % | ||||||||||||||||||||||||||
| Other consumer | ( | ( | % | ||||||||||||||||||||||||||
| Total consumer | ( | ( | % | ||||||||||||||||||||||||||
| Total loans | $ | $ | ( | $ | $ | ( | $ | $ | % | ||||||||||||||||||||
Note 8 Goodwill and Other Intangible Assets
Goodwill
The Corporation conducted its most recent annual impairment testing in May 2026, utilizing a qualitative assessment. Based on this assessment, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There have been no events since the May 2026 impairment test that have changed the Corporation's impairment assessment conclusion. There were no
The Corporation added $42.1 million goodwill related to the American National acquisition in the second quarter of 2026. The Corporation had goodwill of $1.1
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Core Deposit Intangibles
The Corporation has CDIs which are amortized. CDI recorded as part of the American National acquisition is amortized over ten years using the sum of digits method while prior acquisitions are amortized under the straight line method. Changes in the gross carrying amount, accumulated amortization, and net book value for CDIs were as follows:
| (in thousands) | Six Months Ended Jun 30, 2026 | Year Ended Dec 31, 2025 | ||||||
| Core deposit intangibles | ||||||||
| Gross carrying amount at the beginning of period | $ | $ | ||||||
| Additions during the period | — | |||||||
| Accumulated amortization | ( | ( | ||||||
| Net book value | $ | $ | ||||||
| Amortization during the period | $ | $ | ||||||
Mortgage Servicing Rights
A summary of changes in the balance of the MSRs asset under the fair value measurement method is as follows:
| (in thousands) | Six Months Ended Jun 30, 2026 | Year Ended Dec 31, 2025 | |||||||||
| Mortgage servicing rights | |||||||||||
| Mortgage servicing rights at beginning of period | $ | $ | |||||||||
| Additions | |||||||||||
| Decay | ( | ( | |||||||||
| Valuation: | |||||||||||
| Changes in fair value of asset | ( | ||||||||||
| Mortgage servicing rights at end of period | $ | $ | |||||||||
| Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ | $ | |||||||||
| Mortgage servicing rights to servicing portfolio | % | % | |||||||||
The projections of amortization expense for CDIs and decay for MSRs are based on existing asset balances, the current interest rate environment, and prepayment speeds as of June 30, 2026. The actual expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future yearly amortization expense for CDIs and decay for MSRs:
(a) Includes the decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.
| (in thousands) | Core Deposit Intangibles | Mortgage Servicing Rights | |||||||||
| Six Months Ended December 31, 2026 | $ | $ | |||||||||
| 2027 | |||||||||||
| 2028 | |||||||||||
| 2029 | |||||||||||
| 2030 | |||||||||||
| 2031 | |||||||||||
| Beyond 2031 | |||||||||||
Total estimated amortization expense and MSRs decay(a) | $ | $ | |||||||||
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Note 9 Short and Long-Term Funding
The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), and long-term funding (funding with original contractual maturities greater than one year):
| (in thousands) | June 30, 2026 | December 31, 2025 | ||||||
| Short-term funding | ||||||||
| Federal funds purchased | $ | $ | ||||||
| Securities sold under agreements to repurchase | ||||||||
| Federal funds purchased and securities sold under agreements to repurchase | $ | $ | ||||||
| Long-term funding | ||||||||
| Corporation senior notes, at par | $ | $ | ||||||
| Corporation subordinated notes, at par | ||||||||
| Discount and capitalized costs | ( | ( | ||||||
Subordinated debt fair value hedge(a) | ( | |||||||
| Total long-term funding | $ | $ | ||||||
| Total short and long-term funding, excluding FHLB advances | $ | $ | ||||||
| FHLB advances | ||||||||
| Short-term FHLB advances | $ | $ | ||||||
| Long-term FHLB advances | ||||||||
FHLB advances fair value hedge(a) | ( | ( | ||||||
| Total FHLB advances | $ | $ | ||||||
| Total short and long-term funding | $ | $ | ||||||
(a) For additional information on the fair value hedges, see Note 10.
Securities Sold Under Agreements to Repurchase
The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities).
The Corporation utilizes repurchase agreements to facilitate the needs of its customers. The fair value of securities pledged to secure repurchase agreements may decline. At June 30, 2026, the Corporation had pledged securities valued at 202 % of the gross outstanding balance of repurchase agreements to manage this risk.
The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets is presented in the following table:
| Overnight and Continuous | ||||||||||||||||||||
| (in thousands) | June 30, 2026 | December 31, 2025 | ||||||||||||||||||
| Repurchase agreements | ||||||||||||||||||||
| Agency mortgage-related securities | $ | $ | ||||||||||||||||||
Long-Term Funding
Senior Notes
In August 2024 , the Corporation issued $300.0 million in aggregate principal amount of 6.455 % Fixed Rate / Floating Rate Senior Notes due August 29, 2030 . During the period from, and including, August 29, 2024 , to, but excluding, August 29, 2029 , the senior notes will have a fixed coupon interest rate of 6.455 % per annum, payable semi-annually in arrears. During the period from, and including, August 29, 2029 , to, but excluding, the maturity date, the senior notes will have a floating rate per annum equal to Compounded SOFR, as defined in the Global Note issued in connection with the senior notes, plus 3.030 %, payable quarterly in arrears. Prior to August 29, 2029 , the Corporation may, at its option, redeem the senior notes, in whole or in part, at any time and from time to time, by paying the redemption price, as defined in the Global Note issued in connection with the senior notes, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. On August 29, 2029 , the Corporation may at its option, redeem the senior notes, in whole, but not in part, by paying the aggregate principal amount of the notes to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. At any time and from time to time on or after July 30, 2030 (30 days prior to the maturity date), the Corporation may, at its option,
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redeem the senior notes in whole or in part by paying the aggregate principal amount of the senior notes to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. The senior notes were issued at a discount.
Subordinated Notes
In February 2023 , the Corporation issued $300.0 million of 10 -year subordinated notes, due March 1, 2033 and redeemable in whole or in part at the Corporation's option (i) on the reset date of March 1, 2028 and any interest payment date thereafter, (ii) at any time on or after the three month period prior to the maturity date, and (iii) upon the occurrence of a Regulatory Capital Treatment Event, as defined in the Global Note issued in connection with the subordinated notes. The subordinated notes have a fixed coupon interest rate of 6.625 % until the reset date, after which the rate will be equal to the Five-Year U.S. Treasury Rate as of the reset date plus 2.812 % per annum. The notes were issued at a discount.
FHLB Advances
Under agreements with the FHLB of Chicago, FHLB advances are secured by pledging qualifying collateral of the subsidiary bank (such as residential mortgage loans, residential mortgage loans held for sale, home equity loans, CRE loans, and investment securities). The FHLB advances had maturity or call dates ranging from 2026 through 2031 at June 30, 2026.
Note 10 Derivative and Hedging Activities
The Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest and currency rates as well as other economic conditions.
At inception, the Corporation designates the derivative contract as either a fair value hedge (i.e., a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e., a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a non-designated hedge. The hedge accounting methodologies applied for fair value, cash flow, and non-designated hedges are described in the Derivative and Hedging Activities note in the Corporation's 2025 Annual Report on Form 10-K.
The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, contracts generally contain language outlining collateral pledging requirements for each counterparty. For non-centrally cleared derivatives, collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. Securities and cash are often pledged as collateral. The Corporation pledged $73.8 million and $79.4 million of investment securities as collateral at June 30, 2026, and December 31, 2025, respectively. Cash is often pledged or received as collateral for derivatives that are not centrally cleared. The Corporation's cash collateral pledged was $3.5 million at June 30, 2026 and $11.8 million at December 31, 2025. For fair value information and disclosures and for the Corporation's accounting policy for derivative and hedging activities, see the Fair Value Measurements and Summary of Significant Accounting Policies notes in the Corporation's 2025 Annual Report on Form 10-K.
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The following table presents the total notional amounts and gross fair values of the Corporation's derivatives, as well as the balance sheet netting adjustments:
| Jun 30, 2026 | Dec 31, 2025 | ||||||||||||||||||||||||||||
| Asset | Liability | Asset | Liability | ||||||||||||||||||||||||||
| (in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||
| Designated as hedging instruments: | |||||||||||||||||||||||||||||
Interest rate-related instruments(a) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Foreign currency exchange forwards | |||||||||||||||||||||||||||||
| Total designated as hedging instruments | |||||||||||||||||||||||||||||
| Not designated as hedging instruments: | |||||||||||||||||||||||||||||
| Interest rate-related and other instruments | |||||||||||||||||||||||||||||
| Foreign currency exchange forwards | |||||||||||||||||||||||||||||
Mortgage banking(b) | |||||||||||||||||||||||||||||
| Total not designated as hedging instruments | |||||||||||||||||||||||||||||
| Gross derivatives before netting | |||||||||||||||||||||||||||||
| Less: Legally enforceable master netting agreements | |||||||||||||||||||||||||||||
| Less: Cash collateral pledged/received | |||||||||||||||||||||||||||||
| Total derivative instruments, after netting | $ | $ | $ | $ | |||||||||||||||||||||||||
(a) The notional amounts of the interest rate-related instruments designated as hedging instruments include forward starting interest rate swaps. As of June 30, 2026, this includes swaps with an effective dates of November 1, 2026 to December 1, 2026 that had an asset notational and fair value of $
(b) The mortgage derivative asset includes interest rate lock commitments, while the mortgage derivative liability includes forward commitments. Given the fair value position as of June 30, 2026, the fair value of the mortgage derivative asset included $
| Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included | ||||||||||||||
Carrying Amount of the Hedged Assets/(Liabilities)(a) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Carrying Amount of the Hedged Assets/(Liabilities)(a) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | |||||||||||
| (in thousands) | Jun 30, 2026 | Dec 31, 2025 | ||||||||||||
| Other long-term funding | $ | ( | $ | $ | ( | $ | ( | |||||||
| FHLB Advances | ( | ( | ||||||||||||
| Total | $ | ( | $ | $ | ( | $ | ( | |||||||
(a) Excludes hedged items where only foreign currency risk is the designated hedged risk. At June 30, 2026 and December 31, 2025, the carrying amount excluded for foreign currency denominated loans was $
The Corporation terminated its $500.0 million fair value hedge during the fourth quarter of 2019. At June 30, 2026, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was $151.4 million and is included in loans on the consolidated balance sheets. This amount includes $0.7 million of hedging adjustments on the discontinued hedging relationships, which are not presented in the table above.
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The tables below identify the effect of fair value and cash flow hedge accounting on the Corporation's consolidated statements of income:
| Location and Amount Recognized on the Consolidated Statements of Income in Fair Value and Cash Flow Hedging Relationships | ||||||||||||||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (in thousands) | Interest Income | Interest (Expense) | Interest Income | Interest (Expense) | Interest Income | Interest (Expense) | Interest Income | Interest (Expense) | ||||||||||||||||||
Total amounts of income/expense presented on the consolidated statements of income in which the effects of the fair value or cash flow hedges are recorded(a) | $ | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||
| The effects of fair value and cash flow hedging: Impact on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||||||||||||||
| Interest contracts: | ||||||||||||||||||||||||||
| Hedged items | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
Derivatives designated as hedging instruments(a) | ( | ( | ( | ( | ||||||||||||||||||||||
(a) Includes net settlements on the derivatives.
| Location and Amount Recognized on the Consolidated Statements of Income in Fair Value Hedging Relationships | ||||||||||||||
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in thousands) | Capital Markets, Net | Capital Markets, Net | Capital Markets, Net | Capital Markets, Net | ||||||||||
| Total amounts of income/expense presented on the consolidated statements of income in which the effects of the fair value hedges are recorded | $ | $ | $ | $ | ||||||||||
| The effects of fair value hedging: Impact on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||
| Foreign currency contracts: | ||||||||||||||
| Hedged items | ( | ( | ||||||||||||
| Derivatives designated as hedging instruments | ( | ( | ||||||||||||
The following table presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss):
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Interest rate-related instruments designated as cash flow hedging instruments | ||||||||||||||
Amount of (loss) income recognized in OCI on cash flow hedge derivatives(a) | $ | ( | $ | $ | ( | $ | ||||||||
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest income(a) | ( | ( | ||||||||||||
(a) The entirety of gains (losses) recognized in OCI as well as those reclassified from accumulated other comprehensive income (loss) into interest income were included components in the assessment of hedge effectiveness.
Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedge derivatives are reclassified to interest income as interest payments are made on the hedged variable interest rate assets. The Corporation estimates that $3.1 million will be reclassified as a decrease to interest income over the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, or the addition of other hedges subsequent to June 30, 2026. The maximum length of time over which the Corporation is hedging its exposure to the variability in future cash flows is 41 months as of June 30, 2026.
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The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income:
| Consolidated Statements of Income Category of Gain / (Loss) Recognized in Income | Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Derivative instruments | |||||||||||||||||
| Interest rate-related and other instruments — customer and mirror, net | Capital markets, net | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||
| Interest rate-related instruments — MSRs hedge | Mortgage banking, net | ( | ( | ( | |||||||||||||
| Foreign currency exchange forwards | Capital markets, net | ( | ( | ||||||||||||||
| Interest rate lock commitments (mortgage) | Mortgage banking, net | ||||||||||||||||
| Forward commitments (mortgage) | Mortgage banking, net | ( | ( | ( | |||||||||||||
Note 11 Balance Sheet Offsetting
Interest Rate-Related Instruments and Foreign Exchange Forwards (“Interest and Foreign Exchange Agreements”)
The Corporation is permitted to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the consolidated balance sheets when a legally enforceable master netting agreement exists. The Corporation has elected to net such balances where it has determined that the specified conditions are met.
The Corporation uses master netting agreements to mitigate counterparty credit risk in these transactions, including derivative contracts. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer, or failure to deliver collateral or margin when due).
Typical master netting agreements for these types of transactions also contain a collateral/margin agreement that provides for a security interest in, or title transfer of, securities or cash collateral/margin to the party that has the right to demand margin (the "demanding party"). The collateral/margin agreement typically requires a party to transfer collateral/margin to the demanding party with a value equal to the amount of the margin deficit on a net basis across all transactions governed by the master netting agreement, less any threshold. The collateral/margin agreement grants to the demanding party, upon default by the counterparty, the right to offset any amounts payable by the counterparty against any posted collateral or the cash equivalent of any posted collateral/margin. It also grants to the demanding party the right to liquidate collateral/margin and to apply the proceeds to an amount payable by the counterparty.
For additional information on the Corporation’s derivative and hedging activities, see the Derivative and Hedging Activities note in the Corporation's 2025 Annual Report on Form 10-K.
The following tables present the interest rate and foreign exchange assets and liabilities subject to an enforceable master netting arrangement. The interest rate and foreign exchange agreements the Corporation has with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from these tables:
| Gross Amounts Recognized | Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | |||||||||||||||||
| (in thousands) | Derivative Liabilities Offset | Cash Collateral Received | Security Collateral Received | Net Amount | ||||||||||||||||
| Derivative assets | ||||||||||||||||||||
| June 30, 2026 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||
| December 31, 2025 | ( | ( | ( | |||||||||||||||||
| Gross Amounts Recognized | Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | |||||||||||||||||
| (in thousands) | Derivative Assets Offset | Cash Collateral Pledged | Security Collateral Pledged | Net Amount | ||||||||||||||||
| Derivative liabilities | ||||||||||||||||||||
| June 30, 2026 | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||
| December 31, 2025 | ( | ( | ||||||||||||||||||
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Note 12 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings
The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include lending-related and other commitments (see below) as well as derivative instruments (see Note 10). The following is a summary of lending-related commitments:
| (in thousands) | Jun 30, 2026 | Dec 31, 2025 | ||||||
Commitments to extend credit(a), excluding commitments to originate residential mortgage loans held for sale(b) | $ | $ | ||||||
Commercial letters of credit(a) | ||||||||
Standby letters of credit(c) | ||||||||
(a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no
(b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10.
(c) Standby letters of credit are presented excluding participations. The Corporation has established a liability of $2.4 million at June 30, 2026 and $2.2 million at December 31, 2025, as an estimate of the fair value of these financial instruments.
Lending-related Commitments
As a financial services provider, the Corporation routinely enters into commitments to extend credit. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Corporation, with each customer’s creditworthiness evaluated on a case-by-case basis. The commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of those instruments. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Since a significant portion of commitments to extend credit are subject to specific restrictive loan covenants or may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. An allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded commitments (including unfunded loan commitments and letters of credit).
The following table presents a summary of the changes in the allowance for unfunded commitments:
| (in thousands) | Six Months Ended Jun 30, 2026 | Year Ended Dec 31, 2025 | ||||||
| Allowance for unfunded commitments | ||||||||
| Balance at beginning of period | $ | $ | ||||||
| Initial allowance for PCD unfunded commitments | — | |||||||
| Initial allowance for purchased seasoned unfunded commitments | — | |||||||
| Provision for unfunded commitments | ||||||||
| Balance at end of period | $ | $ | ||||||
Lending-related commitments include commitments to extend credit, commitments to originate residential mortgage loans held for sale, commercial letters of credit, and standby letters of credit. Commitments to extend credit are legally binding agreements to lend to customers at predetermined interest rates, as long as there is no violation of any condition established in the contracts. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 10. Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party.
Other Commitments
The Corporation invests in qualified affordable housing projects, historic projects, new market projects, and opportunity zone funds for the purpose of community reinvestment and obtaining tax credits and other tax benefits. Return on the Corporation's investment in these projects and funds comes in the form of the tax credits and tax losses that pass through to the Corporation.
The aggregate carrying value of investments in qualified affordable housing and historic projects at June 30, 2026 was $161.3 million, compared to $174.3 million at December 31, 2025, included in tax credit and other investments on the consolidated balance sheets. The Corporation's remaining investments accounted for under the proportional amortization method totaled $160.0 million at June 30, 2026 and $172.2 million at December 31, 2025.
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Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The following table summarizes income tax credits, other income tax benefits, and investment amortization generated from the Corporation's investments in these projects, which are recognized as a component within income tax expense on the consolidated statements of income and included in the change in net income tax position and amortization of tax credit investments on the consolidated statements of cash flows:
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Income tax credits and other income tax benefits recognized | $ | $ | $ | $ | ||||||||||
| Amortization expense | ||||||||||||||
The Corporation’s unfunded contributions relating to investments in qualified affordable housing and historic projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded contributions totaled $22.5 million at June 30, 2026 and $22.8 million at December 31, 2025.
For the three and six months ended June 30, 2026 and 2025, the Corporation recorded impairment of $0.9
The Corporation has principal investment commitments to provide capital-based financing to private companies through either direct investment in specific companies or through investment funds and partnerships. The timing of future cash requirements to fund such principal investment commitments is generally dependent on the investment cycle, whereby privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial public offering, which can vary based on overall market conditions, as well as the nature and type of industry in which the companies operate. The timing of future cash requirements to fund these pools is dependent upon loan demand, which can vary over time. The aggregate carrying value of these investments was $74.3 million at June 30, 2026 and $62.3 million at December 31, 2025, included in tax credit and other investments on the consolidated balance sheets.
Legal Proceedings
The Corporation is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which involve claims for substantial amounts. Although there can be no assurance as to the ultimate outcomes, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding matters and intends to continue to defend itself vigorously with respect to such legal proceedings. The Corporation will consider settlement of cases when, in management’s judgment, it is in the best interests of the Corporation and its shareholders.
Management believes that the legal proceedings currently pending against it should not have a material adverse effect on the Corporation’s consolidated financial condition. However, in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves the Corporation has currently accrued or that a matter will not have material reputational or other qualitative consequences. As a result, the outcome of a particular matter may be material to the Corporation’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of the Corporation’s income for that period.
Mortgage Repurchase Reserve
The Corporation sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under the Corporation's usual underwriting procedures, and are most often sold on a nonrecourse basis, primarily to the GSEs. The Corporation’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Corporation may be obligated to repurchase the loan or reimburse the GSEs for losses incurred (collectively, “make whole requests”). The make whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. The Corporation also sells qualifying residential mortgage loans guaranteed by U.S. government agencies into GNMA pools.
As a result of make whole requests, the Corporation has repurchased loans with aggregate principal balances of $2.9 million and $3.5 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively. There were no loss reimbursement and settlement claims paid in the six months ended June 30, 2026 or for the year ended December 31, 2025. Make whole requests since January 1, 2025 generally arose from loans originated since January 1, 2022 with balances totaling $4.3 billion at the time of sale, consisting primarily of loans sold to GSEs. As of June 30, 2026, $2.0 billion of those loans originated since January 1, 2022 remain outstanding.
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The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The mortgage repurchase reserve, included in accrued expenses and other liabilities on the consolidated balance sheets, was $0.4 million at June 30, 2026 and $0.3 million at December 31, 2025.
The Corporation may also sell residential mortgage loans with limited recourse (limited in that the recourse period ends prior to the loan’s maturity, usually after certain time and/or loan paydown criteria have been met), whereby repurchase could be required if the loan had defined delinquency issues during the limited recourse periods. At June 30, 2026 and December 31, 2025, there were $12.2 million and $11.4
The Corporation has a subordinate position to the FHLB in the credit risk on residential mortgage loans it sold to the FHLB Mortgage Partnership Finance Traditional program in exchange for a monthly credit enhancement fee. At June 30, 2026 and December 31, 2025, there were $365.8 million and $273.4 immaterial
Note 13 Fair Value Measurements
Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept).
The valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis are described in the Fair Value Measurements note in the Corporation’s 2025 Annual Report on Form 10-K, as well as Note 3 Business Combinations.
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The tables below present the Corporation’s financial instruments measured at fair value on a recurring basis and carrying amounts and estimated fair values of certain financial instruments, aggregated by the level in the fair value hierarchy within which those measurements fall:
| Jun 30, 2026 | |||||||||||||||||
| (in thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
| Assets | |||||||||||||||||
| Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||
| Interest-bearing deposits in other financial institutions | |||||||||||||||||
| Federal funds sold and securities purchased under agreements to resell | |||||||||||||||||
| AFS investment securities: | |||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
| Residential mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Commercial mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Asset backed securities: | |||||||||||||||||
| FFELP | |||||||||||||||||
| SBA | |||||||||||||||||
Other debt securities(b) | |||||||||||||||||
| Total AFS investment securities | |||||||||||||||||
| HTM investment securities: | |||||||||||||||||
| U.S. Treasury securities | |||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
| Residential mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Private-label | |||||||||||||||||
| Commercial mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Total HTM investment securities | |||||||||||||||||
| Equity securities: | |||||||||||||||||
| Equity securities | |||||||||||||||||
| Equity securities at NAV | |||||||||||||||||
| Total equity securities | |||||||||||||||||
| Regulatory stocks | |||||||||||||||||
| Residential loans held for sale | |||||||||||||||||
| Commercial loans held for sale | |||||||||||||||||
| Loans, net | |||||||||||||||||
| Bank and corporate owned life insurance | |||||||||||||||||
| Mortgage servicing rights, net | |||||||||||||||||
Interest rate-related instruments designated as hedging instruments(a) | |||||||||||||||||
Foreign currency exchange forwards designated as hedging instruments(a) | |||||||||||||||||
Interest rate-related and other instruments not designated as hedging instruments(a) | |||||||||||||||||
Foreign currency exchange forwards not designated as hedging instruments(a) | |||||||||||||||||
| Interest rate lock commitments to originate residential mortgage loans held for sale | |||||||||||||||||
| Total selected assets at fair value | $ | $ | $ | $ | $ | ||||||||||||
(a) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place.
(b) The quantifiable unobservable input for fair value measurement of the Level 3 classified security is externally developed.
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| Jun 30, 2026 | |||||||||||||||||
| (in thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
| Liabilities | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Brokered CDs | $ | $ | $ | $ | $ | ||||||||||||
| Other time deposits | |||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | |||||||||||||||||
| FHLB advances | |||||||||||||||||
| Senior and subordinated debt | |||||||||||||||||
Standby letters of credit(a) | |||||||||||||||||
Interest rate-related instruments designated as hedging instruments(b) | |||||||||||||||||
Foreign currency exchange forwards designated as hedging instruments(b) | |||||||||||||||||
Interest rate-related and other instruments not designated as hedging instruments(b) | |||||||||||||||||
Foreign currency exchange forwards not designated as hedging instruments(b) | |||||||||||||||||
| Forward commitments to sell residential mortgage loans | |||||||||||||||||
| Total selected liabilities at fair value | $ | $ | $ | $ | $ | ||||||||||||
(a) The commitment on standby letters of credit was $
(b) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place.
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| Dec 31, 2025 | |||||||||||||||||
| (in thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
| Assets | |||||||||||||||||
| Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||
| Interest-bearing deposits in other financial institutions | |||||||||||||||||
| Federal funds sold and securities purchased under agreements to resell | |||||||||||||||||
| AFS investment securities: | |||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
| Residential mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Commercial mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Asset backed securities: | |||||||||||||||||
| FFELP | |||||||||||||||||
| SBA | |||||||||||||||||
| Other debt securities | |||||||||||||||||
| Total AFS investment securities | |||||||||||||||||
| HTM investment securities: | |||||||||||||||||
| U.S. Treasury securities | |||||||||||||||||
| Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
| Residential mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Private-label | |||||||||||||||||
| Commercial mortgage-related securities: | |||||||||||||||||
| FNMA / FHLMC | |||||||||||||||||
| GNMA | |||||||||||||||||
| Total HTM investment securities | |||||||||||||||||
| Equity securities: | |||||||||||||||||
| Equity securities | |||||||||||||||||
| Equity securities at NAV | |||||||||||||||||
| Total equity securities | |||||||||||||||||
| Regulatory stocks | |||||||||||||||||
| Residential loans held for sale | |||||||||||||||||
| Loans, net | |||||||||||||||||
| Bank and corporate owned life insurance | |||||||||||||||||
| Mortgage servicing rights, net | |||||||||||||||||
Interest rate-related instruments designated as hedging instruments(a) | |||||||||||||||||
Foreign currency exchange forwards designated as hedging instruments(a) | |||||||||||||||||
Interest rate-related and other instruments not designated as hedging instruments(a) | |||||||||||||||||
Foreign currency exchange forwards not designated as hedging instruments(a) | |||||||||||||||||
| Interest rate lock commitments to originate residential mortgage loans held for sale | |||||||||||||||||
| Total selected assets at fair value | $ | $ | $ | $ | $ | ||||||||||||
(a) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place.
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| Dec 31, 2025 | |||||||||||||||||
| (in thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
| Liabilities | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Brokered CDs | $ | $ | $ | $ | $ | ||||||||||||
| Other time deposits | |||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | |||||||||||||||||
| FHLB advances | |||||||||||||||||
| Senior and subordinated debt | |||||||||||||||||
Standby letters of credit(a) | |||||||||||||||||
Interest rate-related instruments designated as hedging instruments(b) | |||||||||||||||||
Foreign currency exchange forwards designated as hedging instruments(b) | |||||||||||||||||
Interest rate-related and other instruments not designated as hedging instruments(b) | |||||||||||||||||
Foreign currency exchange forwards not designated as hedging instruments(b) | |||||||||||||||||
| Forward commitments to sell residential mortgage loans | |||||||||||||||||
| Total selected liabilities at fair value | $ | $ | $ | $ | $ | ||||||||||||
(a) The commitment on standby letters of credit was $222.0 million at December 31, 2025. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
(b) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place.
The table below presents a rollforward of the consolidated balance sheets amounts for the Corporation's mortgage derivatives measured at fair value on a recurring basis and classified within Level 3 of the fair value hierarchy:
| (in thousands) | Interest rate lock commitments to originate residential mortgage loans held for sale | Forward commitments to sell residential mortgage loans | |||||||||
| Balance December 31, 2024 | $ | $ | ( | ||||||||
| New production | ( | ||||||||||
| Closed loans / settlements | ( | ||||||||||
| Other | |||||||||||
| Change in mortgage derivative | |||||||||||
| Balance December 31, 2025 | |||||||||||
| New production | ( | ||||||||||
| Closed loans / settlements | ( | ||||||||||
| Other | ( | ( | |||||||||
| Change in mortgage derivative | ( | ||||||||||
| Balance June 30, 2026 | $ | $ | |||||||||
Refer to Note 8 for a rollforward of the consolidated balance sheets amounts for the Corporation's mortgage servicing rights measured at fair value on a recurring basis and classified within Level 3 of the fair value hierarchy.
The following table presents a rollforward of the fair value of Level 3 equity securities that are measured under the measurement alternative, and the related adjustments recorded during the periods presented for those securities with observable price changes:
| (in thousands) | |||||
| Fair value as of December 31, 2024 | $ | ||||
| Purchases | |||||
| Sales | ( | ||||
| Transfers out of level 3 | ( | ||||
| Fair value as of December 31, 2025 | $ | ||||
The Corporation did not have any activity for Level 3 equity securities for the six months ended June 30, 2026.
The Corporation acquired a Level 3 AFS debt security upon the acquisition of American National on April 1, 2026. The security was valued at $2.1 million and no related adjustments to fair value have been recorded as of June 30, 2026.
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The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:
| Fair Value | |||||||||||||||||
| (in thousands) | Fair Value Hierarchy | June 30, 2026 | December 31, 2025 | ||||||||||||||
| Assets | |||||||||||||||||
| Individually evaluated loans | Level 3 | $ | $ | ||||||||||||||
OREO(a) | Level 2 | ||||||||||||||||
(a) These assets are held at lower of its carrying amount or fair value less cost to sell. Assets included here are those that were adjusted to fair value less cost to sell during the period.
The table below presents the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:
| June 30, 2026 | Valuation Technique | Significant Unobservable Input | Range of Inputs | Weighted Average Input Applied | ||||||||||||||||
| Mortgage servicing rights | Discounted cash flow | Option adjusted spread | - | |||||||||||||||||
| Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | - | |||||||||||||||||
| Individually evaluated loans | Discounted cash flow | Discount factor | - | |||||||||||||||||
| Individually evaluated loans | Market approach | Appraisal / Cost to sell | - | |||||||||||||||||
| Interest rate lock commitments to originate residential mortgage loans held for sale | Discounted cash flow | Closing ratio | - | |||||||||||||||||
Note 14 Retirement Plans
The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans.
The components of net periodic pension benefit and net periodic cost for the RAP and Postretirement Plan were as follows:
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| RAP | ||||||||||||||
| Service cost | $ | $ | $ | $ | ||||||||||
| Interest cost | ||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | ||||||||||
| Amortization of prior service credit | ( | ( | ( | ( | ||||||||||
| Total net periodic pension benefit | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Postretirement Plan | ||||||||||||||
| Interest cost | $ | $ | $ | $ | ||||||||||
| Amortization of prior service credit | ( | ( | ( | ( | ||||||||||
| Amortization of actuarial loss | ||||||||||||||
| Total net periodic cost | $ | $ | $ | $ | ||||||||||
The components of net periodic pension benefit and net periodic cost, other than the service cost component, are included in the other noninterest expense caption of the consolidated statements of income. The service cost component is included in the personnel noninterest expense caption of the consolidated statements of income.
The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no
Note 15 Segment Reporting
The Corporation is managed through operating segments based on our internal structure and management process, which is how we assess performance and allocate resources to the segments. Certain operating segments have been aggregated into our three reportable segments where the nature of the products and services, the type of customer, and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and
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Business; and Risk Management and Shared Services. A description of the products and services and the related customers for each reportable segment can be found in the Segment Reporting note in the Corporation’s 2025 Annual Report on Form 10-K.
Effective beginning the first quarter of 2026, the Corporation made adjustments to both its FTP and expense allocation of shared services to its reportable segments to better align with how management assesses performance and allocates resources. These changes consisted of updates to the FTP methodology, including revisions to the funding curve and deposit assumptions; reassignment of certain branch locations based on the primary business activities supported by those branches; and revisions to the allocation of shared service expenses. The Corporation has recast prior period segment information to conform to the current period presentation.
The financial information of the Corporation’s segments disclosed below has been compiled utilizing the accounting policies described in the Corporation’s 2025 Annual Report on Form 10-K with certain exceptions based on internal management accounting policies. The significant exceptions are as follows:
The Corporation allocates certain net interest income, the provision for credit losses, certain noninterest expenses, and income taxes to each operating segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed.
The Corporation allocates certain net interest income using an internal FTP methodology that charges users of funds (assets, primarily loans) and credits providers of funds (liabilities, primarily deposits) based on the funding curve, maturity, prepayment, and other characteristics of the assets and liabilities. This allocation is reflected as net intersegment interest income (expense) in the accompanying tables.
The provision for credit losses is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an ACLL model using methodologies described in the Corporation’s 2025 Annual Report on Form 10-K.
The net effect of the above allocations is recorded within the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's consolidated financial information.
Indirect expenses incurred by the Corporation's centralized support functions - including facilities, information technology, finance, and corporate risk management - are allocated to reportable segments based on actual usage, such as transaction volumes or FTEs, as well as other relevant drivers that reflect consumption of those services. Because these allocations are based on estimated activity levels, individual period results may reflect variability in the distribution of indirect expenses among segments. Certain corporate-level expenses, including acquisition-related costs, integration expenses, and gains or losses on the disposition of branches or business units, are not allocated and remain in the Risk Management and Shared Services segment. These allocations are reflected as allocated indirect expense in the accompanying tables.
Income tax expense (benefit) is allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses.
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Financial information about the Corporation’s segments is presented below:
| Three Months Ended June 30, 2026 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services | Consolidated Corporation | ||||||||||
| Net segment interest income | $ | $ | $ | $ | ||||||||||
| Net intersegment interest (expense) income | ( | ( | ||||||||||||
| Net interest income (expense) | ( | |||||||||||||
| Noninterest income | ||||||||||||||
| Total income (expense) before provision | ( | |||||||||||||
| Provision for credit losses | ( | |||||||||||||
| Total income after provision | ||||||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | ||||||||||||||
Technology(a) | ||||||||||||||
Occupancy(a) | ||||||||||||||
| Business development and advertising | ||||||||||||||
Equipment(a) | ||||||||||||||
| Legal and professional | ||||||||||||||
| Loan and foreclosure costs | ||||||||||||||
| FDIC assessment | ||||||||||||||
| Other intangible amortization | ||||||||||||||
| Other noninterest expense | ||||||||||||||
| Allocated indirect expense (income) | ( | |||||||||||||
| Total noninterest expense | ||||||||||||||
| Net income (loss) before income taxes | ( | |||||||||||||
| Income tax expense | ( | |||||||||||||
| Net income (loss) | $ | $ | $ | ( | $ | |||||||||
| Loans | $ | $ | $ | $ | ||||||||||
| Allocated goodwill | ||||||||||||||
| Total assets | ||||||||||||||
(a) A portion of total depreciation expense of $0.2 million, $6.3 million, and $6.0 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
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| Three Months Ended June 30, 2025 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services | Consolidated Corporation | ||||||||||
| Net segment interest income (expense) | $ | $ | $ | ( | $ | |||||||||
| Net intersegment interest (expense) income | ( | ( | ||||||||||||
| Net interest income (expense) | ( | |||||||||||||
| Noninterest income | ||||||||||||||
| Total income (expense) before provision | ( | |||||||||||||
| Provision for credit losses | ( | |||||||||||||
| Total income (expense) after provision | ( | |||||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | ||||||||||||||
Technology(a) | ||||||||||||||
Occupancy(a) | ||||||||||||||
| Business development and advertising | ||||||||||||||
Equipment(a) | ||||||||||||||
| Legal and professional | ||||||||||||||
| Loan and foreclosure costs | ||||||||||||||
| FDIC assessment | ||||||||||||||
| Other intangible amortization | ||||||||||||||
| Other noninterest expense | ||||||||||||||
| Allocated indirect expense (income) | ( | |||||||||||||
| Total noninterest expense | ||||||||||||||
| Net income (loss) before income taxes | ( | |||||||||||||
| Income tax expense (benefit) | ( | |||||||||||||
| Net income (loss) | $ | $ | $ | ( | $ | |||||||||
| Loans | $ | $ | $ | $ | ||||||||||
| Allocated goodwill | ||||||||||||||
| Total assets | ||||||||||||||
a) A portion of total depreciation expense of $0.1 million, $5.9 million, and $6.0 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
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| Six Months Ended Jun 30, 2026 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services | Consolidated Corporation | ||||||||||
| Net segment interest income | $ | $ | $ | $ | ||||||||||
| Net intersegment interest (expense) income | ( | ( | ||||||||||||
| Net interest income (expense) | ( | |||||||||||||
| Noninterest income | ||||||||||||||
| Total income (expense) before provision | ( | |||||||||||||
| Provision for credit losses | ( | |||||||||||||
| Total income after provision | ||||||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | ||||||||||||||
Technology(a) | ||||||||||||||
Occupancy(a) | ||||||||||||||
| Business development and advertising | ||||||||||||||
Equipment(a) | ||||||||||||||
| Legal and professional | ||||||||||||||
| Loan and foreclosure costs | ||||||||||||||
| FDIC assessment | ||||||||||||||
| Other intangible amortization | ||||||||||||||
| Other noninterest expense | ||||||||||||||
| Allocated indirect expense (income) | ( | |||||||||||||
| Total noninterest expense | ||||||||||||||
| Net income (loss) before income taxes | ( | |||||||||||||
| Income tax expense (benefit) | ( | |||||||||||||
| Net income (loss) | $ | $ | $ | ( | $ | |||||||||
(a) A portion of total depreciation expense of $0.3 million, $12.5 million, and $11.9 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
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| Six Months Ended Jun 30, 2025 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services | Consolidated Corporation | ||||||||||
| Net segment interest income (expense) | $ | $ | $ | ( | $ | |||||||||
| Net intersegment interest (expense) income | ( | ( | ||||||||||||
| Net interest income (expense) | ( | |||||||||||||
| Noninterest income | ||||||||||||||
| Total income (expense) before provision | ( | |||||||||||||
| Provision for credit losses | ( | |||||||||||||
| Total income (expense) after provision | ( | |||||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | ||||||||||||||
Technology(a) | ||||||||||||||
Occupancy(a) | ||||||||||||||
| Business development and advertising | ||||||||||||||
Equipment(a) | ||||||||||||||
| Legal and professional | ||||||||||||||
| Loan and foreclosure costs | ||||||||||||||
| FDIC assessment | ||||||||||||||
| Other intangible amortization | ||||||||||||||
| Other noninterest expense | ||||||||||||||
| Allocated indirect expense (income) | ( | |||||||||||||
| Total noninterest expense | ||||||||||||||
| Net income (loss) before income taxes | ( | |||||||||||||
| Income tax expense (benefit) | ( | |||||||||||||
| Net income (loss) | $ | $ | $ | ( | $ | |||||||||
Risk Management and Shared Services segments, respectively, is included in this expense caption.
Expenses included within the other noninterest expense line of the segment information above relate to the remaining segment expenses including office expense and card issuance costs. None of the individual expense categories rise to the level of significance for the segment; however, they are utilized in determining the profit or loss measure for each segment.
The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. GAAP. As a result, reportable segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, the information presented is not indicative of how the segments would perform if they operated as independent entities.
The chief operating decision maker for each of the segments is the President and Chief Executive Officer of the Corporation. For the Corporate and Commercial Specialty and Community, Consumer and Business segments, the chief operating decision maker utilizes net interest income, net income and average total loans and deposits in allocating resources for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. Based on the reviews of these two segments and other company-wide initiatives, the chief operating decision maker is informed about allocation of resources to the Risk Management and Shared Services segment.
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Note 16 Accumulated Other Comprehensive Income (Loss)
The following table summarizes the components of accumulated other comprehensive income (loss) at June 30, 2026 and 2025, including changes during the preceding six and three month periods as well as any reclassifications out of accumulated other comprehensive income (loss):
| (in thousands) | Investment Securities | Cash Flow Hedge Derivatives | Defined Benefit Pension and Postretirement Obligations | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance December 31, 2025 | $ | ( | $ | $ | ( | $ | ( | |||||||
| Other comprehensive loss before reclassifications | ( | ( | ||||||||||||
| Amounts reclassified from accumulated other comprehensive (loss) income: | ||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM securities | ||||||||||||||
| Other assets / accrued expenses and other liabilities | ( | ( | ||||||||||||
| Interest expense | ( | ( | ||||||||||||
| Personnel expense | ( | ( | ||||||||||||
| Income tax benefit (expense) | ( | |||||||||||||
| Net other comprehensive loss during period | ( | ( | ( | ( | ||||||||||
| Balance June 30, 2026 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Balance December 31, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Other comprehensive income before reclassifications | ||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM securities | ||||||||||||||
| Other assets / accrued expenses and other liabilities | ||||||||||||||
| Interest income | ||||||||||||||
| Personnel expense | ( | ( | ||||||||||||
| Other expense | ( | ( | ||||||||||||
| Income tax (expense) benefit | ( | ( | ( | |||||||||||
| Net other comprehensive income during period | ||||||||||||||
| Balance June 30, 2025 | $ | ( | $ | $ | ( | $ | ( | |||||||
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| (in thousands) | AFS Investment Securities | Cash Flow Hedge Derivatives | Defined Benefit Pension and Postretirement Obligations | Accumulated Other Comprehensive (Loss) Income | ||||||||||
Balance March 31, 2026 | $ | ( | $ | $ | ( | $ | ( | |||||||
| Other comprehensive loss before reclassifications | ( | ( | ||||||||||||
| Amounts reclassified from accumulated other comprehensive (loss) income: | ||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM securities | ||||||||||||||
| Other assets / accrued expenses and other liabilities | ( | ( | ||||||||||||
| Interest income | ( | ( | ||||||||||||
| Personnel expense | ( | ( | ||||||||||||
| Income tax benefit (expense) | ( | |||||||||||||
| Net other comprehensive loss during period | ( | ( | ( | ( | ||||||||||
| Balance June 30, 2026 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Balance March 31, 2025 | $ | ( | $ | $ | ( | $ | ( | |||||||
| Other comprehensive income before reclassifications | ||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM securities | ||||||||||||||
| Other assets / accrued expenses and other liabilities | ||||||||||||||
| Interest income | ||||||||||||||
| Personnel expense | ( | ( | ||||||||||||
| Other expense | ( | ( | ||||||||||||
| Income tax (expense) benefit | ( | ( | ||||||||||||
| Net other comprehensive income (loss) during period | ( | |||||||||||||
| Balance June 30, 2025 | $ | ( | $ | $ | ( | $ | ( | |||||||
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| ITEM 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||
Special Note Regarding Forward-Looking Statements
This report contains statements that may constitute forward-looking statements within the meaning of the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, such as statements other than historical facts contained or incorporated by reference into this report. These forward-looking statements include statements with respect to the Corporation’s financial condition, results of operations, plans, objectives, future performance and business, including statements preceded by, followed by or that include the words “believes,” “expects,” or “anticipates,” references to estimates or similar expressions. Future filings by the Corporation with the SEC, and future statements other than historical facts contained in written material, press releases and oral statements issued by, or on behalf of the Corporation may also constitute forward-looking statements.
All forward-looking statements contained in this report or which may be contained in future statements made for or on behalf of the Corporation are based upon information available at the time the statement is made and the Corporation assumes no obligation to update any forward-looking statements, except as required by federal securities law. Forward-looking statements are subject to significant risks and uncertainties, and the Corporation’s actual results may differ materially from the expected results discussed in such forward-looking statements. Factors that might cause actual results to differ from the results discussed in forward-looking statements include, but are not limited to, the risk factors in Item 1A, Risk Factors, in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, and as may be described from time to time in the Corporation’s subsequent SEC filings.
Overview
The following discussion and analysis is presented to assist in the understanding and evaluation of the Corporation’s financial condition and results of operations. It is intended to complement the unaudited consolidated financial statements, footnotes, and supplemental financial data appearing elsewhere in this Quarterly Report on Form 10-Q and should be read in conjunction therewith. Management continually evaluates strategic acquisition opportunities and various other strategic alternatives that could involve the sale or acquisition of branches or other assets, or the consolidation or creation of subsidiaries. Within the tables presented, certain columns and rows may not recalculate due to the use of rounded numbers for disclosure purposes.
Performance Summary
•Average loans of $33.6 billion increased $3.3 billion, or 11%, from the first six months of 2025, driven primarily by the American National acquisition and continued organic growth in commercial and business lending portfolio.
•Average deposits of $37.8 billion increased $3.3 billion, or 9%, from the first six months of 2025, primarily due to the American National acquisition, as well as organic growth in noninterest bearing demand, savings and other time deposits, partially offset by a decrease in brokered CDs.
•Net interest income of $677.2 million increased $91.3 million, or 16%, from the first six months of 2025, and net interest margin was 3.10%, compared to 3.01% for the first six months of 2025. The increases in net interest income and net interest margin were driven by the acquisition of American National in the second quarter of 2026 as well as organic growth in commercial and business lending alongside a mix shift in deposits to lower cost products.
•Provision for credit losses was $30.4 million compared to $31.0 million for the first six months of 2025, driven by nominal credit movement coupled with general macroeconomic trends. Provision for credit losses was relatively unchanged from the first six months of 2025, as credit losses associated with acquired seasoned loans were largely reflected through purchase accounting following the adoption of ASU 2025-08.
•Noninterest income of $156.3 million increased $30.5 million, or 24%, from the first six months of 2025, primarily due to higher wealth management fees and capital markets revenue in addition to the absence of a nonrecurring loss on mortgage portfolio sale recognized in the first quarter of 2025 in connection with the completion of balance sheet repositioning announced in the fourth quarter of 2024.
•Noninterest expense of $491.0 million increased $71.1 million, or 17%, from the first six months of 2025, primarily driven by increases in expenses related to the American National acquisition.
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Table 1 Summary Results of Operations: Trends
| YTD | Quarter ended | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||||||||||||
| Net income | $ | 243,200 | $ | 212,916 | $ | 123,564 | $ | 119,635 | $ | 137,129 | $ | 124,732 | $ | 111,230 | |||||||||||||||
| Net income available to common equity | 237,450 | 207,166 | 120,689 | 116,760 | 134,254 | 121,857 | 108,355 | ||||||||||||||||||||||
| Earnings per common share - basic | 1.34 | 1.25 | 0.64 | 0.70 | 0.81 | 0.73 | 0.65 | ||||||||||||||||||||||
| Earnings per common share - diluted | 1.33 | 1.24 | 0.63 | 0.70 | 0.80 | 0.73 | 0.65 | ||||||||||||||||||||||
Dividend payout ratio(a) | 35.82 | % | 36.80 | % | 37.50 | % | 34.29 | % | 29.63 | % | 31.51% | 35.38 | % | ||||||||||||||||
Book value / share(b) | 28.85 | 29.04 | 28.81 | 28.17 | 27.67 | ||||||||||||||||||||||||
Tangible book value (TBV) / share(b)(c) | 22.15 | 22.23 | 22.01 | 21.36 | 20.84 | ||||||||||||||||||||||||
| Performance ratios | |||||||||||||||||||||||||||||
Return on average assets(d) | 1.02 | % | 1.00 | % | 0.97 | % | 1.08 | % | 1.23 | % | 1.12 | % | 1.03 | % | |||||||||||||||
Return on average tangible assets(c)(d) | 1.07 | % | 1.04 | % | 1.03 | % | 1.12 | % | 1.27 | % | 1.17 | % | 1.07 | % | |||||||||||||||
Return on average equity(d) | 9.22 | % | 9.17 | % | 8.81 | % | 9.69 | % | 11.09 | % | 10.26 | % | 9.43 | % | |||||||||||||||
Return on average tangible common equity (ROATCE)(c)(d) | 12.54 | % | 12.66 | % | 12.12 | % | 13.03 | % | 15.04 | % | 14.02 | % | 12.96 | % | |||||||||||||||
| Efficiency ratios (expense / revenue) | |||||||||||||||||||||||||||||
| Fully tax-equivalent efficiency ratio | 57.26 | % | 57.70 | % | 58.30 | % | 56.03 | % | 55.21 | % | 54.77 | % | 55.81 | % | |||||||||||||||
Adjusted efficiency ratio(c) | 54.23 | % | 57.15 | % | 52.91 | % | 55.77 | % | 55.15 | % | 54.77 | % | 55.81 | % | |||||||||||||||
(a) Ratio is based upon basic earnings per common share.
(b) Based on period end common shares outstanding.
(c) This is a non-GAAP financial measure. See Table 19 Non-GAAP Measures for a reconciliation to GAAP financial measures.
(d) This ratio is annualized.
55
Back to table of contents
Income Statement Analysis
Net Interest Income
Table 2 Net Interest Income Analysis
| Six Months Ended Jun 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025(a) | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Earning assets | |||||||||||||||||||||||||||||||||||
Loans(b)(c) | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 12,485,064 | $ | 369,755 | 5.97% | $ | 10,783,368 | $ | 349,740 | 6.54% | |||||||||||||||||||||||||
| Commercial real estate—owner occupied | 1,385,167 | 37,968 | 5.53% | 1,127,535 | 32,214 | 5.76% | |||||||||||||||||||||||||||||
| Commercial and business lending | 13,870,231 | 407,723 | 5.93% | 11,910,904 | 381,954 | 6.46% | |||||||||||||||||||||||||||||
| Commercial real estate—investor | 5,893,380 | 177,285 | 6.06% | 5,499,334 | 178,658 | 6.55% | |||||||||||||||||||||||||||||
| Real estate construction | 2,233,900 | 74,468 | 6.72% | 1,884,065 | 67,829 | 7.26% | |||||||||||||||||||||||||||||
| Commercial real estate lending | 8,127,280 | 251,753 | 6.24% | 7,383,399 | 246,486 | 6.73% | |||||||||||||||||||||||||||||
| Total commercial | 21,997,511 | 659,476 | 6.04% | 19,294,303 | 628,440 | 6.57% | |||||||||||||||||||||||||||||
| Residential mortgage | 6,874,603 | 130,603 | 3.80% | 7,144,851 | 131,818 | 3.69% | |||||||||||||||||||||||||||||
| Auto finance | 3,587,435 | 100,736 | 5.66% | 2,889,190 | 80,332 | 5.61% | |||||||||||||||||||||||||||||
| Home equity | 763,919 | 24,788 | 6.49% | 662,509 | 24,150 | 7.29% | |||||||||||||||||||||||||||||
| Other consumer | 365,077 | 18,892 | 10.44% | 311,691 | 17,417 | 11.27% | |||||||||||||||||||||||||||||
| Total consumer | 11,591,034 | 275,019 | 4.76% | 11,008,241 | 253,717 | 4.62% | |||||||||||||||||||||||||||||
| Total loans | 33,588,545 | 934,495 | 5.60% | 30,302,544 | 882,157 | 5.86% | |||||||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||||||||||||
| Taxable securities | 7,615,581 | 164,023 | 4.31% | 6,489,135 | 140,962 | 4.34% | |||||||||||||||||||||||||||||
Tax-exempt securities(b) | 1,975,205 | 34,763 | 3.52% | 2,010,403 | 35,264 | 3.51% | |||||||||||||||||||||||||||||
| Other short-term investments | 1,154,975 | 26,335 | 4.60% | 878,929 | 21,921 | 5.03% | |||||||||||||||||||||||||||||
| Total investments | 10,745,761 | 225,121 | 4.19% | 9,378,467 | 198,147 | 4.23% | |||||||||||||||||||||||||||||
| Total earning assets and related interest income | 44,334,306 | $ | 1,159,616 | 5.26% | 39,681,011 | $ | 1,080,304 | 5.48% | |||||||||||||||||||||||||||
| Other assets, net | 3,810,263 | 3,346,515 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 48,144,569 | $ | 43,027,526 | |||||||||||||||||||||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||||||||
| Savings | $ | 5,791,146 | $ | 37,505 | 1.31% | $ | 5,192,835 | $ | 35,068 | 1.36% | |||||||||||||||||||||||||
| Interest-bearing demand | 8,305,614 | 71,397 | 1.73% | 7,856,593 | 87,915 | 2.26% | |||||||||||||||||||||||||||||
| Money market | 6,855,912 | 80,215 | 2.36% | 6,033,999 | 78,255 | 2.62% | |||||||||||||||||||||||||||||
| Network transaction deposits | 1,898,760 | 34,961 | 3.71% | 1,845,974 | 40,278 | 4.40% | |||||||||||||||||||||||||||||
| Brokered CDs | 3,808,685 | 75,298 | 3.99% | 4,201,955 | 94,711 | 4.55% | |||||||||||||||||||||||||||||
| Other time deposits | 4,592,267 | 79,662 | 3.50% | 3,740,683 | 70,569 | 3.80% | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 31,252,384 | 379,038 | 2.45% | 28,872,038 | 406,796 | 2.84% | |||||||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 442,876 | 7,818 | 3.56% | 297,963 | 5,626 | 3.81% | |||||||||||||||||||||||||||||
| FHLB advances | 3,558,141 | 66,621 | 3.78% | 2,413,352 | 50,979 | 4.26% | |||||||||||||||||||||||||||||
| Senior and subordinated debt | 593,292 | 20,326 | 6.85% | 609,788 | 21,785 | 7.15% | |||||||||||||||||||||||||||||
| Other interest-bearing liabilities | 13,835 | 306 | 4.46% | 24,683 | 695 | 5.68% | |||||||||||||||||||||||||||||
| Total funding | 4,608,144 | 95,071 | 4.15% | 3,345,786 | 79,085 | 4.76% | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities and related interest expense | 35,860,528 | $ | 474,109 | 2.67% | 32,217,824 | $ | 485,881 | 3.04% | |||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 6,533,624 | 5,644,554 | |||||||||||||||||||||||||||||||||
| Other liabilities | 431,445 | 483,247 | |||||||||||||||||||||||||||||||||
| Stockholders’ equity | 5,318,972 | 4,681,901 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 48,144,569 | $ | 43,027,526 | |||||||||||||||||||||||||||||||
| Interest rate spread | 2.59% | 2.44% | |||||||||||||||||||||||||||||||||
| Net free funds | 0.51% | 0.57% | |||||||||||||||||||||||||||||||||
| Fully tax-equivalent net interest income and net interest margin | $ | 685,507 | 3.10% | $ | 594,423 | 3.01% | |||||||||||||||||||||||||||||
| Fully tax-equivalent adjustment | (8,279) | (8,483) | |||||||||||||||||||||||||||||||||
| Net interest income | $ | 677,228 | $ | 585,940 | |||||||||||||||||||||||||||||||
(a) Prior period has been adjusted to conform with current period presentation.
(b) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.
(b) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.
(c) Loans held for sale have been included in the average balances.
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Table 2 Net Interest Income Analysis
| Three Months Ended, | |||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Jun 30, 2025(a) | |||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Earning assets | |||||||||||||||||||||||||||||
Loans(b)(c) | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 13,185,643 | $ | 197,248 | 6.00% | $ | 11,776,702 | $ | 172,507 | 5.94% | $ | 10,981,221 | $ | 179,955 | 6.57% | ||||||||||||||
| Commercial real estate—owner occupied | 1,577,489 | 22,000 | 5.59% | 1,190,708 | 15,968 | 5.44% | 1,114,054 | 16,014 | 5.77% | ||||||||||||||||||||
| Commercial and business lending | 14,763,132 | 219,248 | 5.96% | 12,967,410 | 188,475 | 5.89% | 12,095,274 | 195,969 | 6.50% | ||||||||||||||||||||
| Commercial real estate—investor | 6,502,707 | 99,131 | 6.11% | 5,277,283 | 78,154 | 6.01% | 5,582,333 | 91,569 | 6.58% | ||||||||||||||||||||
| Real estate construction | 2,410,500 | 40,425 | 6.73% | 2,055,338 | 34,043 | 6.72% | 1,869,708 | 33,883 | 7.27% | ||||||||||||||||||||
| Commercial real estate lending | 8,913,207 | 139,556 | 6.28% | 7,332,621 | 112,197 | 6.21% | 7,452,041 | 125,452 | 6.75% | ||||||||||||||||||||
| Total commercial | 23,676,339 | 358,804 | 6.08% | 20,300,031 | 300,672 | 6.01% | 19,547,316 | 321,421 | 6.59% | ||||||||||||||||||||
| Residential mortgage | 6,916,754 | 65,963 | 3.81% | 6,831,984 | 64,640 | 3.78% | 7,034,607 | 64,995 | 3.70% | ||||||||||||||||||||
| Auto finance | 4,044,290 | 58,768 | 5.83% | 3,125,504 | 41,969 | 5.45% | 2,933,161 | 41,156 | 5.63% | ||||||||||||||||||||
| Home equity | 817,378 | 13,096 | 6.41% | 709,865 | 11,692 | 6.60% | 667,339 | 12,098 | 7.25% | ||||||||||||||||||||
| Other consumer | 415,476 | 10,388 | 10.03% | 314,118 | 8,504 | 10.98% | 309,578 | 8,644 | 11.20% | ||||||||||||||||||||
| Total consumer | 12,193,898 | 148,215 | 4.87% | 10,981,471 | 126,805 | 4.65% | 10,944,685 | 126,893 | 4.64% | ||||||||||||||||||||
| Total loans | 35,870,237 | 507,019 | 5.67% | 31,281,502 | 427,477 | 5.53% | 30,492,001 | 448,313 | 5.89% | ||||||||||||||||||||
| Investments | |||||||||||||||||||||||||||||
| Taxable securities | 8,153,435 | 88,347 | 4.33% | 7,071,751 | 75,676 | 4.28% | 6,578,690 | 71,174 | 4.33% | ||||||||||||||||||||
Tax-exempt securities(b) | 1,971,946 | 17,373 | 3.52% | 1,978,501 | 17,389 | 3.52% | 2,004,725 | 17,598 | 3.51% | ||||||||||||||||||||
| Other short-term investments | 1,291,636 | 14,694 | 4.56% | 1,016,795 | 11,641 | 4.64% | 999,294 | 12,679 | 5.09% | ||||||||||||||||||||
| Total investments | 11,417,017 | 120,414 | 4.22% | 10,067,047 | 104,706 | 4.17% | 9,582,709 | 101,451 | 4.24% | ||||||||||||||||||||
| Total earning assets and related interest income | 47,287,254 | $ | 627,433 | 5.32% | 41,348,549 | $ | 532,183 | 5.20% | 40,074,710 | $ | 549,764 | 5.50% | |||||||||||||||||
| Other assets, net | 3,948,588 | 3,670,399 | 3,345,353 | ||||||||||||||||||||||||||
| Total assets | $ | 51,235,842 | $ | 45,018,948 | $ | 43,420,063 | |||||||||||||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||
| Savings | $ | 6,046,605 | $ | 19,815 | 1.31% | $ | 5,532,848 | $ | 17,690 | 1.30% | $ | 5,222,869 | $ | 17,139 | 1.32% | ||||||||||||||
| Interest-bearing demand | 8,720,180 | 37,161 | 1.71% | 7,886,442 | 34,236 | 1.76% | 7,683,402 | 42,485 | 2.22% | ||||||||||||||||||||
| Money market | 7,641,652 | 45,976 | 2.41% | 6,061,442 | 34,239 | 2.29% | 5,988,947 | 38,695 | 2.59% | ||||||||||||||||||||
| Network transaction deposits | 1,879,876 | 17,459 | 3.73% | 1,917,854 | 17,502 | 3.70% | 1,843,998 | 20,211 | 4.40% | ||||||||||||||||||||
| Brokered CDs | 4,085,995 | 40,487 | 3.97% | 3,528,294 | 34,811 | 4.00% | 4,089,844 | 45,418 | 4.45% | ||||||||||||||||||||
| Other time deposits | 4,945,821 | 42,867 | 3.48% | 4,234,785 | 36,795 | 3.52% | 3,725,205 | 33,707 | 3.63% | ||||||||||||||||||||
| Total interest-bearing deposits | 33,320,129 | 203,765 | 2.45% | 29,161,665 | 175,273 | 2.44% | 28,554,266 | 197,656 | 2.78% | ||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 460,414 | 4,085 | 3.56% | 425,142 | 3,732 | 3.56% | 220,872 | 2,004 | 3.64% | ||||||||||||||||||||
| FHLB advances | 3,733,950 | 35,052 | 3.77% | 3,380,379 | 31,570 | 3.79% | 3,221,749 | 34,889 | 4.34% | ||||||||||||||||||||
| Senior and subordinated debt | 592,195 | 10,163 | 6.86% | 594,401 | 10,163 | 6.84% | 592,399 | 10,700 | 7.22% | ||||||||||||||||||||
| Other interest-bearing liabilities | 16,430 | 190 | 4.64% | 11,212 | 116 | 4.18% | 17,844 | 287 | 6.45% | ||||||||||||||||||||
| Total funding | 4,802,989 | 49,490 | 4.13% | 4,411,134 | 45,581 | 4.18% | 4,052,863 | 47,880 | 4.74% | ||||||||||||||||||||
| Total interest-bearing liabilities and related interest expense | 38,123,118 | $ | 253,255 | 2.66% | 33,572,799 | $ | 220,854 | 2.67% | 32,607,129 | $ | 245,536 | 3.02% | |||||||||||||||||
| Noninterest-bearing demand deposits | 7,062,098 | 5,999,278 | 5,648,935 | ||||||||||||||||||||||||||
| Other liabilities | 422,642 | 440,344 | 431,338 | ||||||||||||||||||||||||||
| Stockholders’ equity | 5,627,984 | 5,006,527 | 4,732,661 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 51,235,842 | $ | 45,018,948 | $ | 43,420,063 | |||||||||||||||||||||||
| Interest rate spread | 2.65% | 2.53% | 2.48% | ||||||||||||||||||||||||||
| Net free funds | 0.52% | 0.50% | 0.56% | ||||||||||||||||||||||||||
| Fully tax-equivalent net interest income and net interest margin | $ | 374,178 | 3.17% | $ | 311,329 | 3.03% | $ | 304,228 | 3.04% | ||||||||||||||||||||
| Fully tax-equivalent adjustment | (4,139) | (4,139) | (4,228) | ||||||||||||||||||||||||||
| Net interest income | $ | 370,039 | $ | 307,190 | $ | 300,000 | |||||||||||||||||||||||
(a) Prior period has been adjusted to conform with current period presentation.
(b) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.
(b) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.
(c) Loans held for sale have been included in the average balances.
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Notable Contributions to the Change in Net Interest Income
•Fully tax-equivalent net interest income and net interest income increased $91.1 million and $91.3 million, or 15% and 16%, as compared to the first six months of 2025, respectively. The average yield on earning assets decreased 22 bp and the cost of interest-bearing liabilities decreased 37 bp from the first six months of 2025. The increase in net interest income was primarily driven by growth in average earning assets resulting from the American National acquisition in the second quarter of 2026. In addition, asset yields benefited from a continued focus to shift the asset mix away from lower-yielding residential mortgages toward higher-yielding commercial loans, while rates paid on interest-bearing liabilities decreased alongside a mix shift in deposits to lower cost products. See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market Risk for a discussion of interest rate risk and market risk.
•Average earning assets increased $4.7 billion, or 12%, from the first six months of 2025. Average loans increased $3.3 billion, or 11%, from the first six months of 2025, driven by loans acquired from American National as well as increases in commercial and industrial, auto finance, and real estate construction loans, partially offset by a decrease in residential mortgage loans as a result of the completion of the Corporation's mortgage portfolio sale in the first quarter of 2025 as part of the balance sheet repositioning announced in the fourth quarter of 2024. Average investments increased $1.4 billion, or 15%, from the first six months of 2025 due to the American National acquisition.
• Average interest-bearing liabilities increased $3.6 billion, or 11%, compared to the first six months of 2025. Average interest-bearing deposits increased $2.4 billion, or 8% from the first six months of 2025. This was primarily driven by the acquisition of American National along with increases in other time deposits and savings, partially offset by a decrease in brokered CDs. Average total funding increased $1.3 billion, or 38%, from the first six months of 2025, primarily driven by an increase in FHLB advances to prepare for and execute the acquisition of American National and fund continued loan growth. Average noninterest-bearing demand deposits increased $889.1 million, or 16%, driven by deposits acquired from the American National acquisition and organic growth from the first six months of 2025.
Provision for Credit Losses
The provision for credit losses is predominantly a function of the Corporation’s reserving methodology and judgments as to other qualitative and quantitative factors used to determine the appropriate level of the ACLL, which focuses on changes in the size and character of the loan portfolio, changes in levels of individually evaluated and other nonaccrual loans, historical losses and delinquencies in each portfolio category, the risk inherent in specific loans, concentrations of loans to specific borrowers or industries, existing economic conditions and economic forecasts, the fair value of underlying collateral, and other factors which could affect potential credit losses. See additional discussion under the sections titled Loans, Credit Risk, Nonperforming Assets, and Allowance for Credit Losses on Loans.
Noninterest Income
Table 3 Noninterest Income
N/M = Not meaningful
(a) In millions. Excludes assets held in brokerage accounts.
| Six months ended | Three months ended | Changes vs | ||||||||||||||||||||||||||||||
| (Dollars in thousands, except as noted) | Jun 30, 2026 | Jun 30, 2025 | YTD % Change | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| Wealth management fees | $ | 51,435 | $ | 45,522 | 13 | % | $ | 26,217 | $ | 25,219 | $ | 25,742 | $ | 25,315 | $ | 23,025 | 4 | % | 14 | % | ||||||||||||
| Service charges and deposit account fees | 29,916 | 25,961 | 15 | % | 15,863 | 14,054 | 13,827 | 13,861 | 13,147 | 13 | % | 21 | % | |||||||||||||||||||
| Card-based fees | 25,740 | 21,642 | 19 | % | 14,161 | 11,579 | 12,679 | 12,308 | 11,200 | 22 | % | 26 | % | |||||||||||||||||||
| Other fee-based revenue | 10,623 | 10,245 | 4 | % | 5,758 | 4,862 | 5,557 | 5,414 | 4,995 | 18 | % | 15 | % | |||||||||||||||||||
| Capital markets, net | 14,018 | 10,110 | 39 | % | 7,476 | 6,543 | 11,175 | 10,764 | 5,765 | 14 | % | 30 | % | |||||||||||||||||||
| Mortgage banking, net | 8,888 | 8,035 | 11 | % | 2,777 | 6,111 | 2,926 | 3,541 | 4,213 | (55) | % | (34) | % | |||||||||||||||||||
| Loss on mortgage portfolio sale | — | (6,976) | (100) | % | — | — | — | — | — | — | % | — | % | |||||||||||||||||||
| Bank and corporate owned life insurance | 8,430 | 9,339 | (10) | % | 4,615 | 3,816 | 3,804 | 4,051 | 4,135 | 21 | % | 12 | % | |||||||||||||||||||
| Asset gains (losses), net | 1,629 | (2,613) | N/M | 789 | 840 | 838 | 3,340 | (1,735) | (6) | % | N/M | |||||||||||||||||||||
| Investment securities gains, net | 6 | 11 | (45) | % | 35 | (28) | 37 | 1 | 7 | N/M | N/M | |||||||||||||||||||||
| Other | 5,571 | $ | 4,477 | 24 | % | 2,707 | 2,861 | 2,799 | 2,670 | 2,226 | (5) | % | 22 | % | ||||||||||||||||||
| Total noninterest income | $ | 156,256 | $ | 125,754 | 24 | % | $ | 80,398 | $ | 75,857 | $ | 79,384 | $ | 81,265 | $ | 66,977 | 6 | % | 20 | % | ||||||||||||
Assets under management, at market value(a) | 17,009 | 15,708 | 16,132 | 16,178 | 15,537 | 8 | % | 9 | % | |||||||||||||||||||||||
(a) In millions. Excludes assets held in brokerage accounts.
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Notable Contributions to the Change in Noninterest Income
•Wealth management fees increased $5.9 million from the first six months of 2025, primarily due to increased assets under management.
•Service charges and deposit account fees increased $4.0 million from the first six months of 2025, due to an increase in overdraft and business demand deposit account fees.
•Card-based fees increased $4.1 million from the first six months of 2025, primarily due to commercial loan charges and interchange fee income.
•Capital markets, net increased $3.9 million from the first six months of 2025, primarily from increased syndication fees and interest rate swaps.
•Loss on mortgage portfolio sale decreased $7.0 million from the first six months of 2025, due to the balance sheet repositioning completed during the first quarter of 2025.
•Asset gains (losses), net increased $4.2 million from the first six months of 2025, due to changes in deferred compensation, partially offset by losses on leases.
Noninterest Expense
Table 4 Noninterest Expense
| Six months ended | Three months ended | QTD % Change vs | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | Jun 30, 2026 | Jun 30, 2025 | YTD % Change | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| Personnel | $ | 296,341 | $ | 250,890 | 18 | % | $ | 161,168 | $ | 135,172 | $ | 135,130 | $ | 135,703 | $ | 126,994 | 19 | % | 27 | % | ||||||||||||
| Technology | 62,603 | 53,646 | 17 | % | 32,867 | 29,736 | 28,641 | 28,590 | 26,508 | 11 | % | 24 | % | |||||||||||||||||||
| Occupancy | 27,817 | 28,025 | (1) | % | 14,091 | 13,725 | 14,229 | 12,757 | 12,644 | 3 | % | 11 | % | |||||||||||||||||||
| Business development and advertising | 16,374 | 14,134 | 16 | % | 8,548 | 7,827 | 9,118 | 8,362 | 7,748 | 9 | % | 10 | % | |||||||||||||||||||
| Equipment | 11,033 | 9,021 | 22 | % | 5,423 | 5,610 | 6,888 | 4,368 | 4,494 | (3) | % | 21 | % | |||||||||||||||||||
| Legal and professional | 24,176 | 12,757 | 90 | % | 17,454 | 6,721 | 5,945 | 5,232 | 6,674 | 160 | % | 162 | % | |||||||||||||||||||
| Loan and foreclosure costs | 3,259 | 5,299 | (38) | % | 1,552 | 1,707 | 1,327 | 1,638 | 2,705 | (9) | % | (43) | % | |||||||||||||||||||
| FDIC assessment | 19,432 | 20,144 | (4) | % | 10,595 | 8,837 | 6,589 | 9,980 | 9,708 | 20 | % | 9 | % | |||||||||||||||||||
| Other intangible amortization | 9,096 | 4,405 | 106 | % | 6,894 | 2,203 | 2,203 | 2,203 | 2,203 | N/M | N/M | |||||||||||||||||||||
| Other | 20,914 | 21,648 | (3) | % | 13,290 | 7,625 | 9,396 | 7,369 | 9,674 | 74 | % | 37 | % | |||||||||||||||||||
| Total noninterest expense | $ | 491,045 | $ | 419,971 | 17 | % | $ | 271,882 | $ | 219,163 | $ | 219,466 | $ | 216,202 | $ | 209,352 | 24 | % | 30 | % | ||||||||||||
| Average FTEs excluding overtime | 4,129 | 3,993 | 3 | % | 4,321 | 3,934 | 3,919 | 3,982 | 3,980 | 10 | % | 9 | % | |||||||||||||||||||
| Annualized noninterest expense / average assets | 2.06 | % | 1.97 | % | 2.13 | % | 1.97 | % | 1.96 | % | 1.95 | % | 1.93 | % | ||||||||||||||||||
Notable Contributions to the Change in Noninterest Expense
•Personnel expense increased $45.5 million from the first six months of 2025, driven by nonrecurring increases in severance and retention bonuses paired with ongoing increased salaries and annual incentive accruals primarily from the American National acquisition, and elevated health care benefit costs.
•Technology expense increased $9.0 million from the first six months of 2025, driven by an increase in subscription costs.
•Business development and advertising increased $2.2 million from the first six months of 2025, driven by marketing and advertising activities.
•Legal and professional expense increased $11.4 million from the first six months of 2025, primarily due to nonrecurring expenses related to the American National acquisition.
•Loan and foreclosure costs decreased $2.0 million from the first six months of 2025, due to recoveries on foreclosure costs due to sales of OREO properties in the first half of 2026.
•Other intangible amortization increased $4.4 million from the first six months of 2025, due to additional amortization related to core deposit intangibles recognized as part of the American National acquisition.
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Income Taxes
The Corporation records income tax expense during interim periods based on the best estimate of the full year's effective tax rate as adjusted for discrete items, if any, taken into account in the relevant interim period. Each quarter, the Corporation updates its estimate of the annual effective tax rate and the effect of any change in the estimated rate is recorded on a cumulative basis. The Corporation recognized income tax expense of $68.9 million for the six months ended June 30, 2026, compared to income tax expense of $47.8 million for the six months ended June 30, 2025. The Corporation's effective tax rate from continuing operations was 22.06% and 18.34% for the six months ended June 30, 2026, and 2025, respectively. The increase in income tax expense of $21.0 million and higher effective tax rate during the first six months of 2026 as compared to the same period of 2025 were primarily due to the net impact of several discrete items from 2025 that resulted in the release of a portion of the valuation allowance, which did not reoccur in 2026. Additionally, the Corporation recognized higher net income before tax for the six months ended June 30, 2026, which reduced the relative impact of any recurring favorable rate drivers.
Income tax expense recorded on the consolidated statements of income involves the interpretation and application of certain accounting pronouncements and federal and state tax laws and regulations.
The Corporation is subject to examination by various taxing authorities. Examination by taxing authorities may impact the amount of tax expense and/or the reserve for uncertainty in income taxes if their interpretations differ from those of management, based on their judgments about information available to them at the time of their examinations.
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Balance Sheet Analysis
•At June 30, 2026, total assets were $51.8 billion, up $6.6 billion, or 15%, from December 31, 2025.
◦Cash and due from banks were $548.1 million at June 30, 2026, down $26.6 million, or 5%, from December 31, 2025. Interest bearing deposits in other financial institutions were $1.3 billion at June 30, 2026, up $124.3 million, or 11%, from December 31, 2025. See the Consolidated Statements of Cash Flows for detailed information on those fluctuations.
◦Available for sale investment securities were $6.4 billion at June 30, 2026, up $969.0 million or 18%, from December 31, 2025. Changes were primarily driven by the acquisition, sale, and reinvestment of the proceeds of the investment securities from the American National acquisition. See Note 3 Business Combinations and Note 6 Investment Securities of the notes to consolidated financial statements for additional detail.
◦Regulatory stocks of $329.4 million at June 30, 2026 were up $76.9 million, or 30%, from December 31, 2025 due to increases in FHLB advances in preparation for and execution of the the American National acquisition requiring additional purchases of FHLB stock.
◦Loans of $36.5 billion at June 30, 2026 were up $5.3 billion, or 17%, from December 31, 2025 primarily due to the American National acquisition and continued organic growth in the commercial and industrial loan portfolio. See Note 3 Business Combinations and Note 7 Loans of the notes to consolidated financial statements and Table 5 Period End Loan Composition below for additional detail.
◦Premise and equipment of $449.0 million at June 30, 2026, up $67.4 million, or 18% from December 31, 2025, primarily due to the American National acquisition. See Note 3 Business Combinations of the notes to consolidated financial statements for additional detail.
•At June 30, 2026, total liabilities were $46.2 billion, up $5.9 billion, or 15%, from December 31, 2025.
◦Total deposits of $39.9 billion at June 30, 2026 were up $4.4 billion or 12%, from December 31, 2025. The increase was primarily due to deposits assumed from the American National acquisition. See Note 3 Business Combinations of the notes to consolidated financial statements for additional detail.
◦Federal funds purchased and securities sold under agreements to repurchase was $529.3 million at June 30, 2026, up $221.4 million, or 72%, from December 31, 2025. FHLB advances of $4.6 billion at June 30, 2026 were up $1.3 billion, or 40%, from December 31, 2025. These increases were driven by the Corporation's need for additional funding to fund the loan growth in the first half of 2026 as well as execution of the American National acquisition. See Note 9 Short and Long-Term Funding of the notes to consolidated financial statements for additional details.
•At June 30, 2026, the loans to deposits ratio was 91.32%, up from 87.65% at December 31, 2025.
•At June 30, 2026, total stockholders' equity was $5.6 billion, up $662.8 million, or 13%, from December 31, 2025 primarily due to the issuance of additional shares of the Corporation's common stock in connection with the acquisition of American National.
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Loans
Table 5 Period End Loan Composition
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
| Commercial and industrial | $ | 13,750,175 | 38 | % | $ | 12,339,597 | 39 | % | $ | 11,799,757 | 38 | % | $ | 11,567,651 | 37 | % | $ | 11,281,964 | 37 | % | ||||||||||||
| Commercial real estate — owner occupied | 1,575,445 | 4 | % | 1,193,778 | 4 | % | 1,186,324 | 4 | % | 1,149,939 | 4 | % | 1,101,501 | 4 | % | |||||||||||||||||
| Commercial and business lending | 15,325,620 | 42 | % | 13,533,375 | 43 | % | 12,986,081 | 42 | % | 12,717,590 | 41 | % | 12,383,465 | 40 | % | |||||||||||||||||
| Commercial real estate — investor | 6,492,950 | 18 | % | 5,266,584 | 16 | % | 5,246,030 | 17 | % | 5,369,441 | 17 | % | 5,370,422 | 18 | % | |||||||||||||||||
| Real estate construction | 2,546,186 | 7 | % | 2,117,479 | 7 | % | 1,994,642 | 6 | % | 1,958,766 | 6 | % | 1,950,267 | 6 | % | |||||||||||||||||
| Commercial real estate lending | 9,039,136 | 25 | % | 7,384,063 | 23 | % | 7,240,672 | 23 | % | 7,328,207 | 24 | % | 7,320,689 | 24 | % | |||||||||||||||||
| Total commercial | 24,364,756 | 67 | % | 20,917,438 | 66 | % | 20,226,753 | 65 | % | 20,045,797 | 65 | % | 19,704,154 | 64 | % | |||||||||||||||||
| Residential mortgage | 6,808,398 | 19 | % | 6,727,734 | 21 | % | 6,793,957 | 22 | % | 6,858,285 | 22 | % | 6,949,387 | 23 | % | |||||||||||||||||
| Auto finance | 4,044,416 | 11 | % | 3,136,334 | 10 | % | 3,106,498 | 10 | % | 3,041,644 | 10 | % | 2,969,495 | 10 | % | |||||||||||||||||
| Home equity | 826,343 | 2 | % | 706,075 | 2 | % | 713,271 | 2 | % | 698,112 | 2 | % | 676,208 | 2 | % | |||||||||||||||||
| Other consumer | 423,127 | 1 | % | 310,583 | 1 | % | 323,135 | 1 | % | 308,126 | 1 | % | 308,361 | 1 | % | |||||||||||||||||
| Total consumer | 12,102,284 | 33 | % | 10,880,726 | 34 | % | 10,936,861 | 35 | % | 10,906,167 | 35 | % | 10,903,451 | 36 | % | |||||||||||||||||
| Total loans | $ | 36,467,040 | 100 | % | $ | 31,798,164 | 100 | % | $ | 31,163,614 | 100 | % | $ | 30,951,964 | 100 | % | $ | 30,607,605 | 100 | % | ||||||||||||
The Corporation has long-term guidelines relative to the proportion of Commercial and Business, CRE, and Consumer loans within the overall loan portfolio. Furthermore, certain sub-asset classes within the respective portfolios are further defined and dollar limitations are placed on these sub-portfolios. These guidelines and limits are reviewed quarterly and approved annually by the ERC. These guidelines and limits are designed to create balance and diversification within the loan portfolios.
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The Corporation’s loan distribution and interest rate sensitivity as of June 30, 2026 are summarized in the following table:
Table 6 Loan Distribution and Interest Rate Sensitivity
(a) Demand loans, past due loans, overdrafts, and credit cards are reported in the “Within 1 Year” category.
| (Dollars in thousands) | Within 1 Year(a) | 1-5 Years | 5-15 Years | Over 15 Years | Total | % of Total | ||||||||||||||
| Fixed rate | ||||||||||||||||||||
| Commercial and industrial | $ | 4,840,849 | $ | 1,396,539 | $ | 342,031 | $ | 35 | $ | 6,579,454 | 18 | % | ||||||||
| Commercial real estate — owner occupied | 160,187 | 397,749 | 125,816 | 6,931 | 690,683 | 2 | % | |||||||||||||
| Commercial and business lending | 5,001,036 | 1,794,288 | 467,847 | 6,966 | 7,270,137 | 20 | % | |||||||||||||
| Commercial real estate — investor | 697,252 | 654,378 | 94,312 | 5,232 | 1,451,174 | 4 | % | |||||||||||||
| Real estate construction | 410,812 | 113,475 | 10,903 | 6,935 | 542,125 | 1 | % | |||||||||||||
| Commercial real estate lending | 1,108,064 | 767,853 | 105,215 | 12,167 | 1,993,299 | 5 | % | |||||||||||||
| Total commercial | 6,109,100 | 2,562,141 | 573,062 | 19,133 | 9,263,436 | 25 | % | |||||||||||||
| Residential mortgage | 22,691 | 74,371 | 302,290 | 3,953,549 | 4,352,901 | 12 | % | |||||||||||||
| Auto finance | 22,074 | 2,310,151 | 1,712,191 | — | 4,044,416 | 11 | % | |||||||||||||
| Home equity | 1,099 | 6,308 | 23,844 | 6,995 | 38,246 | — | % | |||||||||||||
| Other consumer | 7,684 | 75,135 | 61,436 | 4,315 | 148,570 | — | % | |||||||||||||
| Total consumer | 53,548 | 2,465,965 | 2,099,761 | 3,964,859 | 8,584,133 | 23 | % | |||||||||||||
| Total fixed rate loans | $ | 6,162,648 | $ | 5,028,106 | $ | 2,672,823 | $ | 3,983,992 | $ | 17,847,569 | 48 | % | ||||||||
| Floating or adjustable rate | ||||||||||||||||||||
| Commercial and industrial | $ | 7,046,167 | $ | 114,620 | $ | 972 | $ | 8,962 | $ | 7,170,721 | 20 | % | ||||||||
| Commercial real estate — owner occupied | 789,238 | 94,747 | 777 | — | 884,762 | 2 | % | |||||||||||||
| Commercial and business lending | 7,835,405 | 209,367 | 1,749 | 8,962 | 8,055,483 | 22 | % | |||||||||||||
| Commercial real estate — investor | 4,786,443 | 250,962 | 3,759 | 612 | 5,041,776 | 14 | % | |||||||||||||
| Real estate construction | 1,981,142 | 22,919 | — | — | 2,004,061 | 6 | % | |||||||||||||
| Commercial real estate lending | 6,767,585 | 273,881 | 3,759 | 612 | 7,045,837 | 20 | % | |||||||||||||
| Total commercial | 14,602,990 | 483,248 | 5,508 | 9,574 | 15,101,320 | 42 | % | |||||||||||||
| Residential mortgage | 221,237 | 1,035,531 | 1,198,674 | 55 | 2,455,497 | 7 | % | |||||||||||||
| Home equity | 754,144 | 33,600 | 316 | 37 | 788,097 | 2 | % | |||||||||||||
| Other consumer | 274,557 | — | — | — | 274,557 | 1 | % | |||||||||||||
| Total consumer | 1,249,938 | 1,069,131 | 1,198,990 | 92 | 3,518,151 | 10 | % | |||||||||||||
| Total floating or adjustable rate loans | $ | 15,852,928 | $ | 1,552,379 | $ | 1,204,498 | $ | 9,666 | $ | 18,619,471 | 52 | % | ||||||||
| Total loans | $ | 22,015,576 | $ | 6,580,485 | $ | 3,877,321 | $ | 3,993,658 | $ | 36,467,040 | 100 | % | ||||||||
At June 30, 2026, $24.8 billion, or 68%, of the loans outstanding and $21.2 billion, or 87%, of the commercial loans outstanding were floating rate, adjustable rate, re-pricing within one year, or maturing within one year.
Credit Risk
An active credit risk management process is used for commercial loans to ensure that sound and consistent credit decisions are made. Credit risk is controlled by detailed underwriting procedures, comprehensive loan administration, and periodic review of borrowers’ outstanding loans and commitments. Borrower relationships are formally reviewed and graded on an ongoing basis for early identification of potential problems. Further analysis by customer, industry, and geographic location is performed to monitor trends, financial performance, and concentrations. See Note 7 Loans of the notes to consolidated financial statements for additional information on managing overall credit quality.
The loan portfolio is widely diversified by types of borrowers, industry groups, and market areas primarily within the Corporation's lending footprint. Significant loan concentrations are considered to exist when there are amounts loaned to numerous borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. At June 30, 2026, no significant concentrations existed in the Corporation’s portfolio in excess of 10% of total loan exposure.
Commercial and business lending: The commercial and business lending classification primarily includes commercial loans to large corporations, middle market companies, small businesses, and asset-based lending and equipment financing.
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Table 7 Largest Commercial and Industrial Industry Group Exposures, by NAICS Subsector
| Jun 30, 2026 | NAICS Subsector | Outstanding Balance | Total Exposure | % of Total Loan Exposure | ||||||||||
| (Dollars in thousands) | ||||||||||||||
Utilities(a) | 221 | $ | 3,253,512 | $ | 4,249,681 | 9 | % | |||||||
Real Estate(b) | 531 | 2,616,999 | 4,137,227 | 8 | % | |||||||||
Credit Intermediation and Related Activities(c) | 522 | 1,039,948 | 1,583,471 | 3 | % | |||||||||
| Merchant Wholesalers, Durable Goods | 423 | 737,268 | 1,213,733 | 2 | % | |||||||||
(a) 72% of the total utilities exposure comes from renewable energy sources (wind, solar, hydroelectric, and geothermal).
(b) 63% of the total real estate exposure comes from REIT lines.
(c) 71% of credit intermediation and related activities exposure comes from mortgage warehouse lines.
The remaining commercial and industrial portfolio is spread over a diverse range of industries, none of which exceed 2% of total loan exposure.
The CRE-owner occupied portfolio is spread over a diverse range of industries, none of which exceed 2% of total loan exposure.
The credit risk related to commercial and business lending is largely influenced by general economic conditions and the resulting impact on a borrower’s operations or on the value of underlying collateral, if any.
Commercial real estate - investor: Commercial real estate - investor is comprised of loans secured by various non-owner occupied or investor income producing property types.
Table 8 Largest Commercial Real Estate - Investor Property Type Exposures
| Jun 30, 2026 | % of Total Loan Exposure | % of Total Commercial Real Estate - Investor Loan Exposure | ||||||
| Multi-Family | 5 | % | 37 | % | ||||
| Industrial | 3 | % | 24 | % | ||||
| Office | 2 | % | 16 | % | ||||
The remaining commercial real estate - investor portfolio is spread over various other property types, none of which exceed 2% of total loan exposure.
Credit risk is managed in a similar manner to commercial and business lending by employing sound underwriting guidelines, lending primarily to borrowers in local markets and businesses, periodically evaluating the underlying collateral, and formally reviewing the borrower’s financial soundness and relationship on an ongoing basis.
Real estate construction: Real estate construction loans are primarily short-term or interim loans that provide financing for the acquisition or development of commercial income properties, multi-family projects, or residential development, both single family and condominium. Real estate construction loans are made to developers and project managers who are generally well known to the Corporation and have prior successful project experience. The credit risk associated with real estate construction loans is generally confined to specific geographic areas but is also influenced by general economic conditions. The Corporation controls the credit risk on these types of loans by making loans in familiar markets to developers, reviewing the merits of individual projects, controlling loan structure, and monitoring project progress and construction advances.
Table 9 Largest Real Estate Construction Property Type Exposures
| Jun 30, 2026 | % of Total Loan Exposure | % of Total Real Estate Construction Loan Exposure | ||||||
| Multi-Family | 5 | % | 50 | % | ||||
The remaining real estate construction portfolio is spread over various other property types, none of which exceed 2% of total loan exposure.
The Corporation’s current lending standards for CRE and real estate construction lending are determined by property type and specifically address many criteria, including: maximum loan amounts, maximum LTV, requirements for pre-leasing and/or presales, minimum borrower equity, and maximum loan-to-cost. Currently, the maximum standard for LTV is 80%, with lower limits established for certain higher risk types, such as raw land that has a 50% LTV maximum. Certain loans acquired through business combinations may not adhere to these underwriting standards. The Corporation’s LTV guidelines are in compliance with regulatory supervisory limits. In most cases, for real estate construction loans, the loan amounts include interest reserves, which are built into the loans and sized to fund loan payments through construction and lease up and/or sell out.
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Residential mortgages: Residential mortgage loans are primarily first-lien home mortgages with a maximum loan-to-collateral value without credit enhancement (e.g. private mortgage insurance) of 80%. The residential mortgage portfolio is focused primarily in the Corporation's six-state branch footprint, with approximately 94% of the outstanding loan balances in the Corporation's branch footprint at June 30, 2026. The rates on adjustable rate mortgages adjust based upon the movement in the underlying index which is then added to a margin and rounded to the nearest 0.125%. That result is then subjected to any periodic caps to produce the borrower's interest rate for the coming term. Adjustable rate mortgages are typically offered with an initial fixed rate term of 5, 7 or 10 years.
The Corporation generally retains certain fixed-rate residential real estate mortgages in its loan portfolio, including retail and private banking jumbo mortgages and CRA-related mortgages. As part of management’s historical practice of originating and servicing residential mortgage loans, generally the Corporation’s 30-year, agency conforming, fixed-rate residential real estate mortgage loans have been sold in the secondary market with servicing rights retained. Subject to management’s analysis of the current interest rate environment, among other market factors, the Corporation may choose to retain mortgage loan production on its balance sheet.
The Corporation’s underwriting and risk-based pricing guidelines for residential mortgage loans include minimum borrower FICO score and maximum LTV of the property securing the loan. Residential mortgage products generally are underwritten using FHLMC and FNMA secondary marketing guidelines.
Home equity: Home equity consists of both home equity lines of credit and closed-end home equity loans. The Corporation’s credit risk monitoring guidelines for home equity are based on an ongoing review of loan delinquency status, as well as a quarterly review of FICO score deterioration and property devaluation. The Corporation does not routinely obtain appraisals on performing loans to update LTV ratios after origination; however, the Corporation monitors the local housing markets by reviewing the various home price indices and incorporates the impact of the changing market conditions in its ongoing credit monitoring process. For junior lien home equity loans, the Corporation is unable to track the performance of the first lien loan if it does not own or service the first lien loan. However, the Corporation obtains a refreshed FICO score on a quarterly basis and monitors this as part of its assessment of the home equity portfolio.
The Corporation’s underwriting and risk-based pricing guidelines for home equity lines of credit and loans consist of a combination of both borrower FICO score and the original cumulative LTV against the property securing the loan. Currently, the Corporation's policy sets the maximum acceptable LTV at 90%. Certain loans acquired through business combinations may not adhere to these underwriting standards. The Corporation's current home equity line of credit offering is priced based on floating rate indices and generally allows 10 years of interest-only payments followed by a 20-year amortization of the outstanding balance. The loans in the Corporation's portfolio generally have an original term of 20 years with principal and interest payments required.
Indirect Auto: The Corporation currently purchases retail auto sales contracts via a network of approved auto dealerships across 22 states throughout the Northeast, Mid-Atlantic, Midwest, and Great Plains regions of the United States. The auto dealerships finance the sale of automobiles as the initial lender and then assign the contracts to the Corporation pursuant to dealer agreements. The Corporation’s underwriting and pricing guidelines are based on a dual risk grade derived from a combination of FICO auto score and proprietary internal custom score. Minimum grade and FICO score standards ensure the credit risk is appropriately managed to the Corporation’s risk appetite. Further, the grade influences loan-specific parameters such as vehicle age, term, LTV, loan amount, mileage, payment and debt service thresholds, and pricing. Maximum loan terms offered are 84 months on select grades with vehicle age, mileage, and other limitations in place to qualify. The program is designed to capture primarily prime and super prime contracts.
Other consumer: Other consumer consists of credit cards, recreational vehicles, revolving credit plans, and student loans. Credit risk for other consumer loans is influenced by general economic conditions, the characteristics of individual borrowers, and the nature of the loan collateral. Risks of loss are generally on smaller average balances per loan spread over many borrowers. Once charged off, there is usually less opportunity for recovery of these smaller consumer loans. Credit risk is primarily controlled by reviewing the creditworthiness of the borrowers, monitoring payment histories, and taking appropriate collateral and guarantee positions.
Nonperforming Assets
Management is committed to a proactive nonaccrual and problem loan identification philosophy. This philosophy is implemented through the ongoing monitoring and review of all pools of risk in the loan portfolio to ensure that problem loans are identified quickly and the risk of loss is minimized. Table 10 provides detailed information regarding NPAs, which include nonaccrual loans, OREO, and repossessed assets, and also includes information on accruing loans past due and restructured loans:
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Table 10 Nonperforming Assets
| (Dollars in thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||
| Nonperforming assets | |||||||||||||||||
| Commercial and industrial | $ | 44,388 | $ | 19,606 | $ | 7,178 | $ | 12,802 | $ | 6,945 | |||||||
| Commercial real estate — owner occupied | 3,255 | 34 | 203 | 203 | — | ||||||||||||
| Commercial and business lending | 47,643 | 19,640 | 7,381 | 13,006 | 6,945 | ||||||||||||
| Commercial real estate — investor | 11,184 | 8,078 | 8,311 | 7,333 | 15,805 | ||||||||||||
| Real estate construction | 2,974 | 25 | 144 | 145 | 146 | ||||||||||||
| Commercial real estate lending | 14,158 | 8,103 | 8,455 | 7,478 | 15,950 | ||||||||||||
| Total commercial | 61,801 | 27,743 | 15,836 | 20,484 | 22,895 | ||||||||||||
| Residential mortgage | 70,335 | 66,890 | 68,492 | 69,093 | 73,817 | ||||||||||||
| Auto finance | 10,973 | 8,888 | 8,271 | 8,218 | 8,004 | ||||||||||||
| Home equity | 6,582 | 6,950 | 7,774 | 8,299 | 8,201 | ||||||||||||
| Other consumer | 262 | 110 | 55 | 85 | 82 | ||||||||||||
| Total consumer | 88,152 | 82,838 | 84,592 | 85,696 | 90,104 | ||||||||||||
| Total nonaccrual loans | 149,953 | 110,581 | 100,428 | 106,179 | 112,999 | ||||||||||||
| Commercial real estate owned | 28,856 | 25,530 | 25,530 | 27,203 | 31,629 | ||||||||||||
| Residential real estate owned | 2,690 | 3,692 | 2,414 | 1,816 | 1,687 | ||||||||||||
Bank properties real estate owned(a) | 2,506 | 3,312 | 72 | 249 | 972 | ||||||||||||
| OREO | 34,052 | 32,534 | 28,016 | 29,268 | 34,287 | ||||||||||||
| Repossessed assets | 1,293 | 806 | 757 | 789 | 882 | ||||||||||||
| Total nonperforming assets | $ | 185,298 | $ | 143,921 | $ | 129,201 | $ | 136,236 | $ | 148,169 | |||||||
| Accruing loans past due 90 days or more | |||||||||||||||||
| Commercial | $ | 565 | $ | 385 | $ | 370 | $ | 395 | $ | 12,123 | |||||||
Consumer(b) | 1,723 | 2,105 | 2,444 | 2,297 | 2,038 | ||||||||||||
| Total accruing loans past due 90 days or more | $ | 2,288 | $ | 2,490 | $ | 2,814 | $ | 2,692 | $ | 14,160 | |||||||
| Restructured loans (accruing) | |||||||||||||||||
| Commercial | $ | 367 | $ | 461 | $ | 458 | $ | 458 | $ | 431 | |||||||
| Consumer | 5,888 | 5,849 | 5,584 | 4,280 | 3,630 | ||||||||||||
| Total restructured loans (accruing) | $ | 6,255 | $ | 6,310 | $ | 6,042 | $ | 4,738 | $ | 4,061 | |||||||
| Nonaccrual restructured loans (included in nonaccrual loans) | $ | 5,068 | $ | 4,424 | $ | 3,472 | $ | 3,899 | $ | 3,704 | |||||||
| Ratios | |||||||||||||||||
| Nonaccrual loans to total loans | 0.41 | % | 0.35 | % | 0.32 | % | 0.34 | % | 0.37 | % | |||||||
| NPAs to total loans plus OREO and repossessed assets | 0.51 | % | 0.45 | % | 0.41 | % | 0.44 | % | 0.48 | % | |||||||
| NPAs to total assets | 0.36 | % | 0.32 | % | 0.29 | % | 0.31 | % | 0.34 | % | |||||||
| Allowance for credit losses on loans to nonaccrual loans | 329.75 | % | 384.36 | % | 417.56 | % | 390.49 | % | 364.42 | % | |||||||
| Accruing loans 30-89 days past due | |||||||||||||||||
| Commercial and industrial | $ | 10,668 | $ | 24,253 | $ | 2,683 | $ | 1,071 | $ | 2,593 | |||||||
| Commercial real estate — owner occupied | 893 | 345 | 34 | — | 5,628 | ||||||||||||
| Commercial and business lending | 11,561 | 24,598 | 2,717 | 1,071 | 8,221 | ||||||||||||
| Commercial real estate — investor | 3,089 | 33,487 | 19,405 | 14,190 | 1,042 | ||||||||||||
| Real estate construction | 1,437 | — | 117 | 21 | 90 | ||||||||||||
| Commercial real estate lending | 4,526 | 33,487 | 19,522 | 14,211 | 1,132 | ||||||||||||
| Total commercial | 16,087 | 58,085 | 22,239 | 15,282 | 9,353 | ||||||||||||
| Residential mortgage | 14,034 | 7,755 | 13,135 | 12,684 | 8,744 | ||||||||||||
| Auto finance | 20,367 | 14,549 | 16,445 | 14,013 | 13,149 | ||||||||||||
| Home equity | 4,536 | 2,742 | 3,779 | 4,265 | 4,338 | ||||||||||||
Other consumer(b) | 2,988 | 2,173 | 2,704 | 2,728 | 2,578 | ||||||||||||
| Total consumer | 41,925 | 27,219 | 36,063 | 33,689 | 28,810 | ||||||||||||
| Total accruing loans 30-89 days past due | $ | 58,012 | $ | 85,304 | $ | 58,302 | $ | 48,971 | $ | 38,163 | |||||||
(a) Primarily closed branches and other bank operated real estate facilities, pending disposition.
(b) Excluding guaranteed student loans.
Nonaccrual loans: Nonaccrual loans are considered to be one indicator of potential future loan losses. See Note 7 Loans of the notes to consolidated financial statements for additional nonaccrual loan disclosures. See also sections Credit Risk and Allowance for Credit Losses on Loans.
OREO: Management actively seeks to ensure OREO properties held are monitored to minimize the Corporation’s risk of loss.
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Accruing loans past due 90 days or more: Loans past due 90 days or more but still accruing interest are classified as such where the underlying loans are both well-secured (the collateral value is sufficient to cover principal and accrued interest) and are in the process of collection.
Restructured loans: Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See also Note 7 Loans of the notes to consolidated financial statements for additional restructured loans disclosures.
Allowance for Credit Losses on Loans
Credit risks within the loan portfolio are inherently different for each loan type. Credit risk is controlled and monitored through the use of lending standards, a thorough review of potential borrowers, and ongoing review of loan payment performance. Active asset quality administration, including early problem loan identification and timely resolution of problems, aids in the management of credit risk and the minimization of loan losses. Credit risk management for each loan type is discussed in the section entitled Credit Risk. See Note 7 Loans of the notes to consolidated financial statements for additional disclosures on the ACLL.
To assess the appropriateness of the ACLL, the Corporation focuses on the evaluation of many factors, including but not limited to: evaluation of facts and issues related to specific loans, management’s ongoing review and grading of the loan portfolio, credit report refreshes, consideration of historical loan loss and delinquency experience on each portfolio category, trends in past due and nonaccrual loans, the risk characteristics of the various classifications of loan segments, changes in the size and character of the loan portfolio, concentrations of loans to specific borrowers or industries, existing economic conditions and economic forecasts, the fair value of underlying collateral, funding assumptions on lines, and other qualitative and quantitative factors which could affect potential credit losses. The forecast the Corporation used for June 30, 2026 was the Moody's baseline scenario from May 2026, which was reviewed against the June 2026 baseline scenario with no material updates made, over a two year reasonable and supportable period with straight-line reversion to historical losses over the second year of the period. Assessing these factors involves significant judgment. Because each of the criteria used is subject to change, the ACLL is not necessarily indicative of the trend of future credit losses on loans in any particular segment. Therefore, management considers the ACLL a critical accounting estimate, see section Critical Accounting Estimates in the Corporation's 2025 Annual Report on Form 10-K for additional information on the ACLL. See section Nonperforming Assets for a detailed discussion on asset quality. See also Note 7 Loans of the notes to consolidated financial statements for additional ACLL disclosures. Table 5 provides information on loan growth and period end loan composition, Table 10 provides additional information regarding NPAs, and Table 11 and Table 12 provide additional information regarding activity in the ACLL.
The loan segmentation used in calculating the ACLL at June 30, 2026 and December 31, 2025 was generally comparable. The methodology to calculate the ACLL consists of the following components: a valuation allowance estimate is established for commercial and consumer loans determined by the Corporation to be individually evaluated, using discounted cash flows, estimated fair value of underlying collateral, and/or other data available. Loans are segmented for criticized loan pools by loan type as well as for non-criticized loan pools by loan type, primarily based on risk rating rates after considering loan type, historical loss and delinquency experience, credit quality, and industry classifications. Loans that have been criticized are considered to have a higher risk of default than non-criticized loans, as circumstances were present to support the lower loan grade, warranting higher loss factors. Additionally, management allocates ACLL to absorb losses that may not be provided for by the other components due to qualitative factors evaluated by management, such as limitations within the credit risk grading process, known current economic or business conditions that may not yet show in trends, industry or other concentrations with current issues that impose higher inherent risks than are reflected in the loss factors, and other relevant considerations. The total allowance is available to absorb losses from any segment of the loan portfolio.
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Table 11 Allowance for Credit Losses on Loans
| YTD | Quarter Ended | |||||||||||||||||||||||||
| (Dollars in thousands) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | |||||||||||||||||||
| Allowance for loan losses | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 378,068 | $ | 363,545 | $ | 385,756 | $ | 378,068 | $ | 378,341 | $ | 376,515 | $ | 371,348 | ||||||||||||
| Provision for loan losses recorded at acquisition | 397 | — | 397 | — | — | — | — | |||||||||||||||||||
| Initial allowance for PCD loans | 39,512 | — | 39,512 | — | — | — | — | |||||||||||||||||||
| Initial allowance for PSL | 28,263 | — | 28,263 | — | — | — | — | |||||||||||||||||||
| Provision for loan losses | 26,000 | 34,500 | 13,000 | 13,000 | 2,000 | 15,000 | 18,000 | |||||||||||||||||||
| Charge offs | (34,492) | (32,062) | (26,282) | (8,210) | (7,636) | (15,254) | (18,348) | |||||||||||||||||||
| Recoveries | 5,981 | 10,531 | 3,083 | 2,898 | 5,363 | 2,081 | 5,515 | |||||||||||||||||||
| Net charge offs | (28,511) | (21,531) | (23,199) | (5,312) | (2,273) | (13,173) | (12,833) | |||||||||||||||||||
| Balance at end of period | $ | 443,729 | $ | 376,515 | $ | 443,729 | $ | 385,756 | $ | 378,068 | $ | 378,341 | $ | 376,515 | ||||||||||||
| Allowance for unfunded commitments | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 41,276 | $ | 38,776 | $ | 39,276 | $ | 41,276 | $ | 36,276 | $ | 35,276 | $ | 35,276 | ||||||||||||
| Initial allowance for PCD unfunded commitments | 3,597 | — | 3,597 | — | — | — | — | |||||||||||||||||||
| Initial allowance for purchased seasoned unfunded commitments | 1,871 | — | 1,871 | — | — | — | — | |||||||||||||||||||
| Provision for unfunded commitments | 4,000 | (3,500) | 6,000 | (2,000) | 5,000 | 1,000 | — | |||||||||||||||||||
| Balance at end of period | $ | 50,744 | $ | 35,276 | $ | 50,744 | $ | 39,276 | $ | 41,276 | $ | 36,276 | $ | 35,276 | ||||||||||||
| Allowance for credit losses on loans | $ | 494,473 | $ | 411,791 | $ | 494,473 | $ | 425,032 | $ | 419,344 | $ | 414,618 | $ | 411,791 | ||||||||||||
| Provision for credit losses on loans | 30,397 | 31,000 | 19,397 | 11,000 | 7,000 | 16,000 | 18,000 | |||||||||||||||||||
| Net (charge offs) recoveries | ||||||||||||||||||||||||||
| Commercial and industrial | $ | (20,340) | $ | (6,552) | $ | (17,604) | $ | (2,736) | $ | 1,524 | $ | (1,230) | $ | (1,826) | ||||||||||||
| Commercial real estate — owner occupied | — | — | — | — | (113) | — | — | |||||||||||||||||||
| Commercial and business lending | (20,340) | (6,552) | (17,604) | (2,736) | 1,411 | (1,230) | (1,826) | |||||||||||||||||||
| Commercial real estate — investor | (2,210) | (9,385) | (2,710) | 500 | 94 | (8,930) | (8,493) | |||||||||||||||||||
| Real estate construction | 4 | 150 | 2 | 2 | 2 | 2 | 121 | |||||||||||||||||||
| Commercial real estate lending | (2,206) | (9,235) | (2,708) | 502 | 96 | (8,928) | (8,372) | |||||||||||||||||||
| Total commercial | (22,546) | (15,787) | (20,312) | (2,234) | 1,507 | (10,158) | (10,198) | |||||||||||||||||||
| Residential mortgage | (49) | (105) | (197) | 148 | (197) | (231) | (302) | |||||||||||||||||||
| Auto finance | (3,351) | (2,208) | (1,508) | (1,843) | (2,010) | (1,505) | (689) | |||||||||||||||||||
| Home equity | 690 | 526 | 251 | 439 | 2 | 56 | 237 | |||||||||||||||||||
| Other consumer | (3,255) | (3,957) | (1,433) | (1,822) | (1,575) | (1,336) | (1,881) | |||||||||||||||||||
| Total consumer | (5,965) | (5,744) | (2,887) | (3,078) | (3,780) | (3,015) | (2,636) | |||||||||||||||||||
| Total net charge offs | $ | (28,511) | $ | (21,531) | $ | (23,199) | $ | (5,312) | $ | (2,273) | $ | (13,173) | $ | (12,833) | ||||||||||||
| Ratios | ||||||||||||||||||||||||||
| Allowance for credit losses on loans to total loans | 1.36 | % | 1.34 | % | 1.35 | % | 1.34 | % | 1.35 | % | ||||||||||||||||
| Allowance for credit losses on loans to net charge offs (annualized) | 8.6x | 9.5x | 5.3x | 19.7x | 46.5x | 7.9x | 8.0x | |||||||||||||||||||
| Loan evaluation method for ACLL | ||||||||||||||||||||||||||
| Individually evaluated for impairment | $ | 18,624 | $ | 19,919 | $ | 2,992 | $ | 4,518 | $ | — | ||||||||||||||||
| Collectively evaluated for impairment | 475,849 | 405,113 | 416,352 | 410,100 | 411,791 | |||||||||||||||||||||
| Total ACLL | $ | 494,473 | $ | 425,032 | $ | 419,344 | $ | 414,618 | $ | 411,791 | ||||||||||||||||
| Loan balance | ||||||||||||||||||||||||||
| Individually evaluated for impairment | $ | 65,645 | $ | 59,321 | $ | 21,651 | $ | 19,282 | $ | 21,431 | ||||||||||||||||
| Collectively evaluated for impairment | 36,401,395 | 31,738,843 | 31,141,963 | 30,932,683 | 30,586,174 | |||||||||||||||||||||
| Total loan balance | $ | 36,467,040 | $ | 31,798,164 | $ | 31,163,614 | $ | 30,951,964 | $ | 30,607,605 | ||||||||||||||||
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Table 12 Annualized Net (Charge Offs) Recoveries to Average Loans
| YTD | Quarter Ended | |||||||||||||||||||||||||
| (In basis points) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | |||||||||||||||||||
| Net (charge offs) recoveries | ||||||||||||||||||||||||||
| Commercial and industrial | (33) | (12) | (54) | (9) | 5 | (4) | (7) | |||||||||||||||||||
| Commercial real estate — owner occupied | — | — | — | — | (4) | — | — | |||||||||||||||||||
| Commercial and business lending | (30) | (11) | (48) | (9) | 4 | (4) | (6) | |||||||||||||||||||
| Commercial real estate — investor | (8) | (34) | (17) | 4 | 1 | (67) | (61) | |||||||||||||||||||
| Real estate construction | — | 2 | — | — | — | — | 3 | |||||||||||||||||||
| Commercial real estate lending | (5) | (25) | (12) | 3 | 1 | (49) | (45) | |||||||||||||||||||
| Total commercial | (21) | (16) | (34) | (4) | 3 | (20) | (21) | |||||||||||||||||||
| Residential mortgage | — | — | (1) | 1 | (1) | (1) | (2) | |||||||||||||||||||
| Auto finance | (19) | (15) | (15) | (24) | (26) | (20) | (9) | |||||||||||||||||||
| Home equity | 18 | 16 | 12 | 25 | — | 3 | 14 | |||||||||||||||||||
| Other consumer | (180) | (256) | (138) | (235) | (200) | (173) | (244) | |||||||||||||||||||
| Total consumer | (10) | (11) | (9) | (11) | (14) | (11) | (10) | |||||||||||||||||||
| Total net charge offs | (17) | (14) | (26) | (7) | (3) | (17) | (17) | |||||||||||||||||||
Notable Contributions to the Change in the Allowance for Credit Losses on Loans
•Total nonaccrual loans increased $49.5 million, or 49%, from December 31, 2025, and increased $37.0 million, or 33%, from June 30, 2025. The increase from December 31, 2025 was primarily driven by an organic increase in commercial and industrial and auto finance lending, partially offset by decreases in home equity and residential mortgage lending. Additionally, nonaccrual loans acquired from American National contributed to the increase. The increase from June 30, 2025 was primarily driven by nonaccrual loans acquired from American National. There were also organic increases in commercial and industrial and auto finance lending, partially offset by decreases in CRE - investor, residential mortgage, and home equity lending. See Note 7 Loans of the notes to consolidated financial statements and Table 10 for additional disclosures on the changes in asset quality.
•YTD net charge offs increased $7.0 million from June 30, 2025, primarily driven by net charge offs of loans acquired from American National. See Table 11 and Table 12 for additional information on the activity in the ACLL.
Management believes the level of ACLL to be appropriate at June 30, 2026.
Deposits and Customer Funding
The following table summarizes the composition of our deposits and customer funding:
Table 13 Period End Deposit and Customer Funding Composition
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
| Noninterest-bearing demand | $ | 6,908,338 | 17 | % | $ | 6,125,067 | 17 | % | $ | 6,126,632 | 17 | % | $ | 5,906,251 | 17 | % | $ | 5,782,487 | 17 | % | ||||||||||||
| Savings | 6,171,614 | 15 | % | 5,660,641 | 16 | % | 5,471,870 | 15 | % | 5,380,574 | 15 | % | 5,291,674 | 15 | % | |||||||||||||||||
| Interest-bearing demand | 8,697,879 | 22 | % | 7,964,665 | 22 | % | 7,823,362 | 22 | % | 7,791,861 | 22 | % | 7,490,772 | 22 | % | |||||||||||||||||
| Money market | 7,614,164 | 19 | % | 6,188,045 | 17 | % | 6,139,438 | 17 | % | 5,785,871 | 17 | % | 5,915,867 | 17 | % | |||||||||||||||||
| Network transaction deposits | 1,823,130 | 5 | % | 1,746,518 | 5 | % | 2,154,995 | 6 | % | 2,013,964 | 6 | % | 1,792,362 | 5 | % | |||||||||||||||||
| Brokered CDs | 3,933,787 | 10 | % | 3,562,752 | 10 | % | 3,795,133 | 11 | % | 3,956,517 | 11 | % | 4,072,048 | 12 | % | |||||||||||||||||
| Other time deposits | 4,782,343 | 12 | % | 4,484,077 | 13 | % | 4,041,178 | 11 | % | 4,046,815 | 12 | % | 3,802,356 | 11 | % | |||||||||||||||||
| Total deposits | $ | 39,931,255 | 100 | % | $ | 35,731,765 | 100 | % | $ | 35,552,608 | 100 | % | $ | 34,881,853 | 100 | % | $ | 34,147,565 | 100 | % | ||||||||||||
Other customer funding(a) | 55,371 | 42,372 | 47,794 | 64,570 | 75,440 | |||||||||||||||||||||||||||
| Total deposits and other customer funding | $ | 39,986,626 | $ | 35,774,137 | $ | 35,600,402 | $ | 34,946,423 | $ | 34,223,005 | ||||||||||||||||||||||
| Less: Total network transaction deposits and brokered CDs | 5,756,917 | 5,309,270 | 5,950,128 | 5,970,481 | 5,864,410 | |||||||||||||||||||||||||||
Core customer deposits(b) and other customer funding | $ | 34,229,709 | $ | 30,464,867 | $ | 29,650,274 | $ | 28,975,941 | $ | 28,358,595 | ||||||||||||||||||||||
| Time deposits of more than $250,000 | 1,073,890 | 956,299 | 834,309 | 832,718 | 775,107 | |||||||||||||||||||||||||||
(a) Includes repurchase agreements.
(b) This is a non-GAAP financial measure. See Table 19 Non-GAAP Measures for a reconciliation to GAAP financial measures.
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•Total deposits, which are the Corporation's largest source of funds, increased $4.4 billion, or 12% from December 31, 2025, and increased $5.8 billion, or 17%, from June 30, 2025. The increases from December 31, 2025 and June 30, 2025, were driven by the American National acquisition causing increases in all deposit categories, except network transaction deposits and brokered CD's, respectively.
•Estimated uninsured and uncollateralized deposits, excluding intercompany deposits, were 26.5% of total deposits at both June 30, 2026 and December 31, 2025, while it was 24.8% at June 30, 2025.
Liquidity
The objective of liquidity risk management is to ensure that the Corporation has the ability to generate sufficient cash or cash equivalents in a timely and cost-effective manner to satisfy the cash flow requirements of depositors and borrowers and to meet its other commitments as they become due. The Corporation’s liquidity risk management process is designed to identify, measure, and manage the Corporation’s funding and liquidity risk to meet its daily funding needs in the ordinary course of business, as well as to address expected and unexpected changes in its funding requirements. The Corporation engages in various activities to manage its liquidity risk, including diversifying its funding sources, stress testing, and holding readily-marketable assets which can be used as a source of liquidity, if needed.
The Corporation performs dynamic scenario analysis in accordance with industry best practices. Measures have been established to ensure the Corporation has sufficient high quality short-term liquidity to meet cash flow requirements under stressed scenarios. In addition, the Corporation also reviews static measures such as deposit funding as a percent of total assets and liquid asset levels. Strong capital ratios, credit quality, and core earnings are also essential to maintaining cost effective access to wholesale funding markets. At June 30, 2026, the Corporation was in compliance with its internal liquidity objectives and had sufficient asset-based liquidity to meet its obligations even under a stressed scenario.
The Corporation maintains diverse and readily available liquidity sources, including:
•Lines of credit with the Federal Reserve Bank and FHLB, which require eligible loan and investment collateral to be pledged. Based on the amount of collateral pledged, the FHLB established a collateral value from which the Bank may draw advances, and issue letters of credit in favor of public fund depositors, against the collateral. As of June 30, 2026, the Bank had $5.3 billion available for future funding. The Federal Reserve Bank also establishes a collateral value of assets to support borrowings from the discount window. As of June 30, 2026, the Bank had $6.4 billion available for discount window borrowings.
•Issuances by the Parent Company; the Corporation maintains on file with the SEC a universal shelf registration statement, under which the Parent Company may offer the following securities, either separately or in units: debt securities, preferred stock, depositary shares, common stock, and warrants.
•Bank issuances; the Bank may also issue institutional CDs, network transaction deposits, and brokered CDs.
•Global Bank Note Program issuances; the Bank has implemented a program pursuant to which it may offer up to $2.0 billion aggregate principal amount of its unsecured senior and subordinated notes.
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The following table presents secured and total available liquidity sources, estimated uninsured and uncollateralized deposits (excluding intercompany deposits), and coverage of estimated uninsured and uncollateralized deposits.
Table 14 Liquidity Sources and Uninsured Deposit Coverage Ratio
| (Dollars in thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||
| Federal Reserve Bank balance | $ | 1,265,738 | $ | 915,691 | $ | 1,139,401 | $ | 799,991 | $ | 735,876 | |||||||
| Available FHLB Chicago capacity | 5,330,837 | 5,574,246 | 6,221,495 | 5,943,747 | 5,026,154 | ||||||||||||
| Available Federal Reserve Bank discount window capacity | 6,387,365 | 6,506,759 | 6,443,766 | 5,725,892 | 5,441,186 | ||||||||||||
Funding available within one business day(a) | 12,983,940 | 12,996,696 | 13,804,662 | 12,469,630 | 11,203,216 | ||||||||||||
| Available federal funds lines | 1,967,000 | 1,981,000 | 1,846,000 | 1,419,000 | 1,729,000 | ||||||||||||
Available brokered deposits capacity(b) | 2,014,958 | 1,529,791 | 823,055 | 697,898 | 734,649 | ||||||||||||
Unsecured debt capacity(c) | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
| Total available liquidity | $ | 17,965,898 | $ | 17,507,487 | $ | 17,473,717 | $ | 15,586,528 | $ | 14,666,865 | |||||||
| Uninsured and uncollateralized deposits | $ | 10,590,229 | $ | 9,178,436 | $ | 9,432,066 | $ | 8,697,563 | $ | 8,469,167 | |||||||
| Coverage ratio of uninsured and uncollateralized deposits with secured funding available within one business day | 123 | % | 142 | % | 146 | % | 143 | % | 132 | % | |||||||
| Coverage ratio of uninsured and uncollateralized deposits with total funding | 170 | % | 191 | % | 185 | % | 179 | % | 173 | % | |||||||
(a) Estimated based on normal course of operations with indicated institution.
(b) Availability based on internal policy limitations. The Corporation includes outstanding deposits that have received a primary purpose exemption in the brokered deposit classification as they have similar funding characteristics and risk as brokered deposits.
(c) Estimated availability based on the Corporation's current internal funding considerations.
Based on contractual obligations and ongoing operations, the Corporation's sources of liquidity are sufficient to meet present and future liquidity needs. See Table 17 for information about the Corporation's contractual obligations and other commitments. See section Deposits and Customer Funding for information about uninsured deposits and concentrations.
Credit ratings impact the Corporation's ability to issue debt securities and the cost to borrow money. Adverse changes in credit ratings impact not only the ability to raise funds in the capital markets but also the cost of these funds. For additional information regarding risks related to adverse changes in our credit ratings, see Part I, Item 1A, Risk Factors in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.
For the six months ended June 30, 2026, net cash provided by operating and financing activities was $343.0 million and $1.2 billion, respectively, while investing activities used net cash of $1.4 billion, for a net increase in cash and cash equivalents of $110.6 million since year-end 2025. At June 30, 2026, assets of $51.8 billion increased $6.6 billion, or 15%, from year-end 2025. On the funding side, deposits of $39.9 billion increased $4.4 billion, or 12% from year-end 2025, short-term funding increased $221.4 million, or 72%, and FHLB advances increased $1.3 billion or 40%.
For the six months ended June 30, 2025, net cash provided by operating and financing activities was $239.6 million and $765.5 million, respectively, while investing activities used net cash of $764.6 million, for a net increase in cash and cash equivalents of $240.5 million since year-end 2024. At June 30, 2025, assets of $44.0 billion increased $970.7 million, or 2%, from year-end 2024. On the funding side, deposits of $34.1 billion decreased $500.9 million, or 1%, from year-end 2024, short-term funding decreased $394.8 million, or 84%, and FHLB advances increased $2.0 billion, or 109%.
Quantitative and Qualitative Disclosures about Market Risk
Market risk and interest rate risk are managed centrally. Market risk is the potential for loss arising from adverse changes in the fair value of fixed-income securities, equity securities, other earning assets, and derivative financial instruments as a result of changes in interest rates or other factors. Interest rate risk is the potential for reduced net interest income resulting from adverse changes in the level of interest rates. As a financial institution that engages in transactions involving an array of financial products, the Corporation is exposed to both market risk and interest rate risk. In addition to market risk, interest rate risk is measured and managed through a number of methods. The Corporation uses financial modeling simulation techniques that measure the sensitivity of future earnings due to changing rate environments to measure interest rate risk.
Policies established by the Corporation’s ALCO and approved by the Board of Directors are intended to limit these risks. The Board has delegated day-to-day responsibility for managing market and interest rate risk to ALCO. The primary objectives of market risk management are to minimize any adverse effect that changes in market risk factors may have on net interest income and to offset the risk of price changes for certain assets recorded at fair value.
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Interest Rate Risk
The primary goal of interest rate risk management is to control exposure to interest rate risk within policy limits approved by the Board of Directors. These limits and guidelines reflect the Corporation's risk appetite for interest rate risk over both short-term and long-term horizons.
The major sources of the Corporation's non-trading interest rate risk are timing differences in the maturity and re-pricing characteristics of assets and liabilities, changes in the shape of the yield curve, and the potential exercise of explicit or embedded options. We measure these risks and their impact by identifying and quantifying exposures through the use of sophisticated simulation and valuation models which are employed by management to understand interest rate sensitive EAR and MVE at risk. The Corporation’s interest rate risk profile is such that, generally, a higher yield curve adds to income while a lower yield curve has a negative impact on earnings. The Corporation's EAR profile is asset sensitive at June 30, 2026.
For further discussion of the Corporation's interest rate risk and corresponding key assumptions, see the Interest Rate Risk section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Corporation’s 2025 Annual Report on Form 10-K.
The sensitivity analysis included below is measured as a percentage change in EAR due to gradual moves in benchmark interest rates from a baseline scenario over 12 months. We evaluate the sensitivity using: 1) a dynamic forecast incorporating expected growth in the balance sheet, and 2) a static forecast where the current balance sheet is held constant.
While a gradual shift in interest rates was used in this analysis to provide an estimate of exposure under a probable scenario, an instantaneous shift in interest rates would have a more significant impact. No EAR breaches occurred during the first six months of 2026.
Table 15 Estimated % Change in Rate Sensitive Earnings at Risk Over 12 Months
| Jun 30, 2026 | Dec 31, 2025 | |||||||||||||
| Dynamic Forecast | Static Forecast | Dynamic Forecast | Static Forecast | |||||||||||
| Gradual Rate Change | ||||||||||||||
| 100 bp increase in interest rates | 1.9 | % | 1.8 | % | 1.5 | % | 2.0 | % | ||||||
| 200 bp increase in interest rates | 3.7 | % | 3.4 | % | 2.8 | % | 3.9 | % | ||||||
| 100 bp decrease in interest rates | (1.2) | % | (1.0) | % | (0.8) | % | (1.4) | % | ||||||
| 200 bp decrease in interest rates | (2.6) | % | (2.4) | % | (2.2) | % | (3.4) | % | ||||||
At June 30, 2026, the MVE profile indicates a decrease in net balance sheet value due to instantaneous upward changes in rates and an increase in net balance sheet value due to instantaneous downward changes in rates.
Table 16 Market Value of Equity Sensitivity
| Jun 30, 2026 | Dec 31, 2025 | |||||||
| Instantaneous Rate Change | ||||||||
| 100 bp increase in interest rates | (4.8) | % | (5.2) | % | ||||
| 200 bp increase in interest rates | (10.6) | % | (11.8) | % | ||||
| 100 bp decrease in interest rates | 2.5 | % | 2.3 | % | ||||
| 200 bp decrease in interest rates | 2.2 | % | 1.4 | % | ||||
Since MVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in MVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (i.e., the current year). Further, MVE does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, and changes in product spreads that could mitigate the adverse impact of changes in interest rates.
The above EAR and MVE measures do not include all actions that management may undertake to manage this risk in response to anticipated changes in interest rates.
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Contractual Obligations, Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities
The following table summarizes significant contractual obligations and other commitments at June 30, 2026, at those amounts contractually due to the recipient, including any unamortized premiums or discounts, hedge basis adjustments, or other similar carrying value adjustments.
Table 17 Contractual Obligations and Other Commitments
| (in thousands) | One Year or Less | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||
| Time deposits | $ | 8,500,693 | $ | 195,624 | $ | 19,761 | $ | 52 | $ | 8,716,130 | |||||||
| Federal funds purchased and securities sold under agreements to repurchase | 529,276 | — | — | — | 529,276 | ||||||||||||
| FHLB advances | 4,368,275 | 204,249 | 2,157 | — | 4,574,681 | ||||||||||||
| Senior and subordinated debt | — | — | 298,547 | 292,533 | 591,080 | ||||||||||||
| Operating leases | 5,853 | 10,098 | 7,342 | 16,544 | 39,837 | ||||||||||||
| Total | $ | 13,404,097 | $ | 409,971 | $ | 327,807 | $ | 309,129 | $ | 14,451,004 | |||||||
The Corporation also has obligations under its derivatives, lending-related commitments, and retirement plans as described in Note 10 Derivative and Hedging Activities, Note 12 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings, and Note 14 Retirement Plans of the notes to consolidated financial statements, respectively. Further discussion of the nature of federal funds purchased and securities sold under agreements to repurchase, FHLB advances, and senior and subordinated debt is included in Note 9 Short and Long-Term Funding of the notes to consolidated financial statements.
Capital
Management actively reviews capital strategies for the Corporation and each of its subsidiaries in light of perceived business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, stability of earnings, changing competitive forces, economic conditions in markets served, and strength of management. At June 30, 2026, the capital ratios of the Corporation and its banking subsidiaries were in excess of regulatory minimum requirements. The Corporation’s capital ratios are summarized in the following table.
Compliance with regulatory minimum capital requirements is a tool used in assessing the Corporation's capital adequacy, but not determinative of how the Corporation would fare under extreme stress. Factors that may affect the adequacy of the Corporation's capital include the inherent limitations of fair value estimates and the assumptions thereof, the inherent limitations of the regulatory risk-weights assigned to various asset types, the inherent limitations of accounting classifications of certain investments and the effect on their measurement, external macroeconomic conditions and their effects on capital and the Corporation's ability to raise capital or refinance capital commitments, and the extent of steps taken by state or federal government authorities in periods of extreme stress.
For additional information regarding the potential for additional regulation and supervision, see Part I, Item 1A, Risk Factors in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025.
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Table 18 Capital Ratios
| YTD | Quarter Ended | ||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||||||
Risk-based capital(a) | |||||||||||||||||||||||
CET1(b) | $ | 4,304,915 | $ | 3,744,610 | $ | 3,683,711 | $ | 3,584,712 | $ | 3,493,316 | |||||||||||||
| Tier 1 capital | 4,499,027 | 3,938,722 | 3,877,823 | 3,778,824 | 3,687,428 | ||||||||||||||||||
| Total capital | 5,259,164 | 4,657,925 | 4,593,079 | 4,488,957 | 4,394,367 | ||||||||||||||||||
| Total risk-weighted assets | 41,108,330 | 35,773,810 | 35,125,680 | 34,688,358 | 34,241,408 | ||||||||||||||||||
CET1 capital ratio(b) | 10.47 | % | 10.47 | % | 10.49 | % | 10.33 | % | 10.20 | % | |||||||||||||
| Tier 1 capital ratio | 10.94 | % | 11.01 | % | 11.04 | % | 10.89 | % | 10.77 | % | |||||||||||||
| Total capital ratio | 12.79 | % | 13.02 | % | 13.08 | % | 12.94 | % | 12.83 | % | |||||||||||||
| Tier 1 leverage ratio | 8.99 | % | 8.98 | % | 8.96 | % | 8.81 | % | 8.72 | % | |||||||||||||
| Selected equity and performance ratios | |||||||||||||||||||||||
| Total stockholders’ equity / total assets | 10.88 | % | 10.96 | % | 11.01 | % | 10.95 | % | 10.87 | % | |||||||||||||
| Average stockholders' equity / average assets | 11.05 | % | 10.88 | % | 10.98 | % | 11.12 | % | 11.05 | % | 10.95 | % | 10.90 | % | |||||||||
Tangible common equity / tangible assets (TCE Ratio)(c) | 8.27 | % | 8.27 | % | 8.29 | % | 8.18 | % | 8.06 | % | |||||||||||||
(a) The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards, for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions.
(b) The Corporation is not classified as an advanced approaches holding company as defined by the Federal Reserve. As such, the Corporation has elected to be subject to the AOCI-related adjustments when calculating CET1 capital which allows the Corporation to opt-out of the requirement to include most components of AOCI in CET1 capital.
(c) This is a non-GAAP financial measure. See Table 19 Non-GAAP Measures for a reconciliation to GAAP financial measures.
See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, for information on the shares repurchased during the second quarter of 2026.
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Non-GAAP Measures
Table 19 Non-GAAP Measures
| YTD | Quarter Ended | ||||||||||||||||||||||
| (Dollars in thousands) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | ||||||||||||||||
| Tangible common equity reconciliation | |||||||||||||||||||||||
| Common equity | $ | 5,444,011 | $ | 4,803,760 | $ | 4,781,235 | $ | 4,674,186 | $ | 4,586,669 | |||||||||||||
| Less: Goodwill and other intangible assets, net | 1,264,034 | 1,125,639 | 1,127,842 | 1,130,044 | 1,132,247 | ||||||||||||||||||
| Tangible common equity for TBV / share and TCE Ratio | $ | 4,179,977 | $ | 3,678,121 | $ | 3,653,393 | $ | 3,544,142 | $ | 3,454,422 | |||||||||||||
| Tangible assets reconciliation | |||||||||||||||||||||||
| Total assets | $ | 51,812,506 | $ | 45,593,740 | $ | 45,202,596 | $ | 44,455,863 | $ | 43,993,729 | |||||||||||||
| Less: Goodwill and other intangible assets, net | 1,264,034 | 1,125,639 | 1,127,842 | 1,130,044 | 1,132,247 | ||||||||||||||||||
| Tangible assets for TCE Ratio | $ | 50,548,472 | $ | 44,468,101 | $ | 44,074,754 | $ | 43,325,819 | $ | 42,861,482 | |||||||||||||
| Average tangible common equity reconciliation | |||||||||||||||||||||||
| Average common equity | $ | 5,124,860 | $ | 4,487,789 | $ | 5,433,872 | $ | 4,812,415 | $ | 4,713,445 | $ | 4,627,038 | $ | 4,538,549 | |||||||||
| Less: Average goodwill and other intangible assets, net | 1,197,702 | 1,134,600 | 1,267,876 | 1,126,748 | 1,129,055 | 1,131,385 | 1,133,627 | ||||||||||||||||
| Average tangible common equity for ROATCE | $ | 3,927,158 | $ | 3,353,189 | $ | 4,165,996 | $ | 3,685,667 | $ | 3,584,390 | $ | 3,495,653 | $ | 3,404,922 | |||||||||
| Average tangible assets reconciliation | |||||||||||||||||||||||
| Average total assets | $ | 48,144,569 | $ | 43,027,526 | $ | 51,235,842 | $ | 45,018,948 | $ | 44,402,771 | $ | 44,015,203 | $ | 43,420,063 | |||||||||
| Less: Average goodwill and other intangible assets, net | 1,197,702 | 1,134,600 | 1,267,876 | 1,126,748 | 1,129,055 | 1,131,385 | 1,133,627 | ||||||||||||||||
| Average tangible assets for return on average tangible assets | $ | 46,946,867 | $ | 41,892,926 | $ | 49,967,966 | $ | 43,892,200 | $ | 43,273,716 | $ | 42,883,818 | $ | 42,286,436 | |||||||||
| Adjusted net income reconciliation | |||||||||||||||||||||||
| Net income | $ | 243,200 | $ | 212,916 | $ | 123,564 | $ | 119,635 | $ | 137,129 | $ | 124,732 | $ | 111,230 | |||||||||
| Other intangible amortization, net of tax | 6,822 | 3,304 | 5,170 | 1,652 | 1,652 | 1,652 | 1,652 | ||||||||||||||||
| Adjusted net income for return on average tangible assets | $ | 250,022 | $ | 216,220 | $ | 128,734 | $ | 121,287 | $ | 138,781 | $ | 126,384 | $ | 112,882 | |||||||||
| Adjusted net income available to common equity reconciliation | |||||||||||||||||||||||
| Net income available to common equity | $ | 237,450 | $ | 207,166 | $ | 120,689 | $ | 116,760 | $ | 134,254 | $ | 121,857 | $ | 108,355 | |||||||||
| Other intangible amortization, net of tax | 6,822 | 3,304 | 5,170 | 1,652 | 1,652 | 1,652 | 1,652 | ||||||||||||||||
| Adjusted net income available to common equity for ROATCE | $ | 244,272 | $ | 210,470 | $ | 125,859 | $ | 118,412 | $ | 135,906 | $ | 123,509 | $ | 110,007 | |||||||||
| Period end core customer deposits reconciliation | |||||||||||||||||||||||
| Total deposits | $ | 39,931,255 | $ | 35,731,765 | $ | 35,552,608 | $ | 34,881,853 | $ | 34,147,565 | |||||||||||||
| Less: Network transaction deposits | 1,823,130 | 1,746,518 | 2,154,995 | 2,013,964 | 1,792,362 | ||||||||||||||||||
| Less: Brokered CDs | 3,933,787 | 3,562,752 | 3,795,133 | 3,956,517 | 4,072,048 | ||||||||||||||||||
| Core customer deposits | $ | 34,174,338 | $ | 30,422,495 | $ | 29,602,480 | $ | 28,911,371 | $ | 28,283,155 | |||||||||||||
| Average core customer deposits reconciliation | |||||||||||||||||||||||
| Average total deposits | $ | 37,786,008 | $ | 34,516,592 | $ | 40,382,227 | $ | 35,160,943 | $ | 35,628,917 | $ | 34,705,887 | $ | 34,203,201 | |||||||||
| Less: Average network transaction deposits | 1,898,760 | 1,845,974 | 1,879,876 | 1,917,854 | 2,090,587 | 1,933,659 | 1,843,998 | ||||||||||||||||
| Less: Average brokered CDs | 3,808,685 | 4,201,955 | 4,085,995 | 3,528,294 | 3,998,012 | 3,916,329 | 4,089,844 | ||||||||||||||||
| Average core customer deposits | $ | 32,078,563 | $ | 28,468,663 | $ | 34,416,356 | $ | 29,714,795 | $ | 29,540,318 | $ | 28,855,899 | $ | 28,269,359 | |||||||||
| Total expense for efficiency ratios reconciliation | |||||||||||||||||||||||
| Noninterest expense | $ | 491,045 | $ | 419,971 | $ | 271,882 | $ | 219,163 | $ | 219,466 | $ | 216,202 | $ | 209,352 | |||||||||
| Less: Other intangible amortization | 9,096 | 4,405 | 6,894 | 2,203 | 2,203 | 2,203 | 2,203 | ||||||||||||||||
| Total expense for fully tax-equivalent efficiency ratio | 481,949 | 415,566 | 264,988 | 216,960 | 217,263 | 213,999 | 207,149 | ||||||||||||||||
Less: Acquisition costs(a) | 25,476 | — | 24,469 | 1,007 | 252 | — | — | ||||||||||||||||
| Total expense for adjusted efficiency ratio | $ | 456,473 | $ | 415,566 | $ | 240,519 | $ | 215,953 | $ | 217,011 | $ | 213,999 | $ | 207,149 | |||||||||
| Total revenue for efficiency ratios reconciliation | |||||||||||||||||||||||
| Net interest income | $ | 677,228 | $ | 585,940 | $ | 370,039 | $ | 307,190 | $ | 309,981 | $ | 305,222 | $ | 300,000 | |||||||||
| Noninterest income | 156,256 | 125,754 | 80,398 | 75,857 | 79,384 | 81,265 | 66,977 | ||||||||||||||||
| Less: Investment securities (losses) gains, net | 6 | 11 | 35 | (28) | 37 | 1 | 7 | ||||||||||||||||
| Fully tax-equivalent adjustment | 8,279 | 8,483 | 4,139 | 4,139 | 4,196 | 4,222 | 4,228 | ||||||||||||||||
| Total revenue for fully tax-equivalent efficiency ratio | 841,757 | 720,166 | 454,541 | 387,214 | 393,524 | 390,708 | 371,198 | ||||||||||||||||
Less: Announced initiatives(b) | — | (6,976) | — | — | — | — | — | ||||||||||||||||
| Total revenue for adjusted efficiency ratio | $ | 841,757 | $ | 727,142 | $ | 454,541 | $ | 387,214 | $ | 393,524 | $ | 390,708 | $ | 371,198 | |||||||||
(a) During the fourth quarter of 2025, the Corporation entered into a definitive agreement to acquire American National. The acquisition was completed on April 1, 2026. These costs, incurred in connection with the acquisition, represent nonrecurring costs.
(b) Announced initiatives include the loss on mortgage portfolio sale as a result of balance sheet repositioning that the Corporation announced in the fourth quarter of 2024.
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Sequential Quarter Results
The Corporation reported net income of $123.6 million for the second quarter of 2026, compared to a net income of $119.6 million for the first quarter of 2026. Net income available to common equity was $120.7 million for the second quarter of 2026, or $0.64 and $0.63 for basic and diluted earnings per common share, respectively. Comparatively, the net income available to common equity for the first quarter of 2026 was $116.8 million, or $0.70 for both basic and diluted earnings per common share.
Fully tax-equivalent net interest income for the second quarter of 2026 was $374.2 million, $62.8 million, or 20%, higher than the first quarter of 2026. The increase in net interest income was driven by growth in average earning assets resulting from the American National acquisition, along with an improved interest rate spread. The net interest margin in the second quarter of 2026 and first quarter of 2026 were 3.17% and 3.03%, respectively.
Average earning assets increased $5.9 billion, or 14%, to $47.3 billion in the second quarter of 2026. Driven by the acquisition of American National's loan portfolio and continued organic growth in commercial and industrial lending, average loans increased $4.6 billion, or 15%. On the funding side, average total interest-bearing deposits increased $4.2 billion, or 14%, primarily driven by the acquisition of American National along with organic increases in all deposit types except for network transaction deposits and money market.
The provision for credit losses was $19.4 million for the second quarter of 2026 and $11.0 million for the first quarter of 2026. This was due to an increase in our allowance for unfunded commitments; and general macroeconomic trends. See discussion under sections: Provision for Credit Losses, Nonperforming Assets, and Allowance for Credit Losses on Loans.
Noninterest income for the second quarter of 2026 was $80.4 million, up $4.5 million, or 6% from the first quarter of 2026. This is due to an increase in income from card-based fees and service charges and deposit account fees, partially offset by a decrease in mortgage banking income.
Noninterest expense for the second quarter of 2026 was $271.9 million, up $52.7 million, or 24% from the first quarter of 2026. This was primarily driven by increases in expenses related to the American National acquisition.
For the second quarter of 2026, the Corporation recognized income tax expense of $35.6 million, compared to an income tax expense of $33.2 million for the first quarter of 2026. The increase in expense from the first quarter of 2026 was primarily attributable to an increase in net income from the American National acquisition.
Comparable Quarter Results
The Corporation reported net income of $123.6 million for the second quarter of 2026, compared to net income of $111.2 million for the second quarter of 2025. Net income available to common equity was $120.7 million for the second quarter of 2026, or $0.64 and $0.63 for basic and diluted earnings per common share, respectively. Comparatively, net income available to common equity for the second quarter of 2025 was $108.4 million, or $0.65 for both basic and diluted earnings per common share.
Fully tax-equivalent net interest income for the second quarter of 2026 was $374.2 million, $70.0 million, or 23%, higher than the second quarter of 2025. The net interest margin between the comparable quarters was up 13 bp, to 3.17% in the second quarter of 2026 from the second quarter of 2025. The increase in net interest income was primarily driven by growth in average earning assets resulting from the American National acquisition, along with an improved interest rate spread.
Average earning assets increased $7.2 billion, or 18%, to $47.3 billion in the second quarter of 2026. Average loans increased $5.4 billion, or 18% and average investments increased $1.8 billion, or 19%, primarily due to the American National transaction and continued organic growth in commercial and industrial lending. On the funding side, average interest-bearing deposits increased $4.8 billion, or 17%, from the second quarter of 2025, primarily due to the American National acquisition. Average short and long-term funding increased $750.1 million, or 19%, primarily due to increases in federal funds purchased and securities sold under repurchase agreements and short term FHLB advances driven by the Corporation's need for additional funding to continue to fund the loan growth as well as execution of the American National acquisition.
The provision for credit losses was $19.4 million for the second quarter of 2026, compared to a provision of $18.0 million for the second quarter of 2025. This was due to loan growth, continued nominal credit movement in the portfolio, and general macroeconomic conditions. See discussion under sections: Provision for Credit Losses, Nonperforming Assets, and Allowance for Credit Losses on Loans.
Noninterest income for the second quarter of 2026 was $80.4 million, up $13.4 million, or 20%, compared to the second quarter of 2025. This is due to an increase in income from wealth management fees, card-based fees, and service charges and deposit account fees, and partially offset by a decrease in mortgage banking income.
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Noninterest expense for the second quarter of 2026 was $271.9 million, up $62.5 million, or 30%, from the second quarter of 2025, driven by nonrecurring expenses related to the American National transaction and increases in personnel expense related to increases in annual incentive accruals and health care costs and technology costs.
The Corporation recognized income tax expense of $35.6 million for the second quarter of 2026, compared to income tax expense of $28.4 million for the second quarter of 2025. The increase was due the net effect of several discrete items with favorable tax rate impacts in the second quarter of 2025 that did not reoccur, as well as an increase in net income in the second quarter of 2026.
Segment Review
The reportable segments are Corporate and Commercial Specialty; Community, Consumer and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments was compiled utilizing the accounting policies described in the Corporation’s 2025 Annual Report on Form 10-K and Note 15 Segment Reporting of the notes to consolidated financial statements.
Table 20 Selected Segment Financial Data
| Three Months Ended Jun 30, | Six Months Ended Jun 30, | |||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||
| Corporate and Commercial Specialty | ||||||||||||||||||||
| Total revenue | $ | 177,331 | $ | 147,625 | 20% | $ | 319,616 | $ | 291,593 | 10% | ||||||||||
| Provision for credit losses | 21,287 | 20,369 | 5% | 41,947 | 39,382 | 7% | ||||||||||||||
| Noninterest expense | 58,400 | 56,021 | 4% | 108,131 | 112,155 | (4)% | ||||||||||||||
| Income tax expense | 17,567 | 13,211 | 33% | 30,825 | 25,997 | 19% | ||||||||||||||
| Net income | 80,077 | 58,025 | 38% | 138,713 | 114,059 | 22% | ||||||||||||||
| Average earning assets | 21,167,443 | 17,501,224 | 21% | 19,689,554 | 17,253,366 | 14% | ||||||||||||||
| Average loans | 21,160,951 | 17,483,645 | 21% | 19,680,150 | 17,241,671 | 14% | ||||||||||||||
| Average deposits | 8,907,099 | 6,921,336 | 29% | 7,928,845 | 7,082,223 | 12% | ||||||||||||||
| Community, Consumer, and Business | ||||||||||||||||||||
| Total revenue | $ | 278,964 | $ | 263,830 | 6% | $ | 533,373 | $ | 520,783 | 2% | ||||||||||
| Provision for credit losses | 6,456 | 6,363 | 1% | 13,391 | 12,434 | 8% | ||||||||||||||
| Noninterest expense | 174,545 | 153,331 | 14% | 330,630 | 307,816 | 7% | ||||||||||||||
| Income tax expense | 20,676 | 21,869 | (5)% | 39,868 | 42,112 | (5)% | ||||||||||||||
| Net income | 77,287 | 82,268 | (6)% | 149,484 | 158,421 | (6)% | ||||||||||||||
| Average earning assets | 14,263,119 | 12,533,452 | 14% | 13,478,556 | 12,591,669 | 7% | ||||||||||||||
| Average loans | 14,259,708 | 12,530,041 | 14% | 13,475,145 | 12,588,258 | 7% | ||||||||||||||
| Average deposits | 24,622,409 | 21,185,516 | 16% | 23,409,579 | 21,239,541 | 10% | ||||||||||||||
| Risk Management and Shared Services | ||||||||||||||||||||
| Total net revenue | $ | (5,858) | $ | (44,478) | (87)% | $ | (19,505) | $ | (100,682) | (81)% | ||||||||||
| Provision for credit losses | (8,355) | (8,736) | (4)% | (24,949) | (20,817) | 20% | ||||||||||||||
| Noninterest expense | 38,937 | — | N/M | 52,284 | — | N/M | ||||||||||||||
| Income tax benefit | (2,640) | (6,681) | (60)% | (1,843) | (20,301) | (91)% | ||||||||||||||
| Net loss | (33,800) | (29,063) | 16% | (44,997) | (59,564) | (24)% | ||||||||||||||
| Average earning assets | 11,856,692 | 10,040,034 | 18% | 11,166,195 | 9,835,976 | 14% | ||||||||||||||
| Average loans | 449,578 | 478,315 | (6)% | 433,250 | 472,615 | (8)% | ||||||||||||||
| Average deposits | 6,852,719 | 6,096,349 | 12% | 6,447,584 | 6,194,828 | 4% | ||||||||||||||
N/M = Not meaningful
Notable Changes in Segment Financial Data
Corporate and Commercial Specialty
•Net income increased $24.7 million from the six months ended June 30, 2025, attributable to growth in commercial and business lending as well as the inclusion of operating results from the recent acquisition of American National.
•Average earning assets and average loans increased $2.4 billion and compared to the six months ended June 30, 2025, primarily driven by the acquisition of American National and continued organic growth in commercial and industrial lending.
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•Average deposits increased $846.6 million from the six months ended June 30, 2025 due to increases in all major deposit types primarily through the acquisition of American National.
Community, Consumer, and Business
•Average earning assets and average loans both increased by $886.9 million from the six months ended June 30, 2025, driven by the acquisition of American National loans with the majority being auto finance loans.
•Average deposits increased $2.2 billion from the six months ended June 30, 2025, driven by increases in all deposit types through the acquisition of American National and organic core customer deposit growth.
Risk Management and Shared Services
•Total net revenue increased $81.2 million from the six months ended June 30, 2025, due to an increase in direct interest income due to the increased AFS securities acquired from American National and additional FTP expense being allocated to the other segments based on their related funding mixes.
•Average earning assets increased $1.3 billion from the six months ended June 30, 2025, due to an increase to the Corporation's the investment portfolio following the American National acquisition.
Critical Accounting Estimates
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. The determination of the ACLL is particularly susceptible to significant change. A discussion of these estimates can be found in the Critical Accounting Estimates section in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Corporation’s 2025 Annual Report on Form 10-K. There have been no changes in the Corporation's application of critical accounting estimates since December 31, 2025.
Recent Developments
On July 28, 2026, the Corporation’s Board of Directors declared a regular quarterly cash dividend of $0.24 per common share, payable on September 15, 2026, to shareholders of record at the close of business on September 1, 2026.
The Board of Directors also declared a regular quarterly cash dividend of $0.3671875 per depositary share on Associated's 5.875% Perpetual Preferred Stock, Series E, payable on September 15, 2026 to the shareholders of record at the close of business on September 1, 2026.
The Board of Directors also declared a regular quarterly cash dividend of $0.3515625 per depositary share on Associated's 5.625% Perpetual Preferred Stock, Series F, payable on September 15, 2026 to the shareholders of record at the close of business on September 1, 2026.
| ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk | ||||
Information required by this item is set forth in Item 2 under the captions Quantitative and Qualitative Disclosures about Market Risk and Interest Rate Risk.
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| ITEM 4. | Controls and Procedures | ||||
The Corporation maintains disclosure controls and procedures as required under Rule 13a-15 promulgated under the Securities Exchange Act that are designed to ensure that information required to be disclosed in the Corporation's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Corporation’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As of June 30, 2026, the Corporation’s management carried out an evaluation, under the supervision and with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures. Based on the foregoing, its Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective as of June 30, 2026.
On April 1, 2026, the Corporation completed its acquisition of American National. The Corporation is in the process of integrating the acquired operations, business processes and systems into its overall internal control environment and has begun to extend its oversight and monitoring activities to include the acquired operations. Management's evaluation of internal control over financial reporting as of June 30, 2026 did not include an assessment of the internal controls over financial reporting of American National. The Corporation expects to continue evaluating and integrating American National into the Corporation's internal control environment in connection with the planned conversion of systems and operations.
Other than the integration activities associated with the American National acquisition, there were no changes were made to the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.
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| PART II - OTHER INFORMATION | ||
| ITEM 1. | Legal Proceedings | ||||
The information required by this item is set forth in Part I, Item 1 under Note 12 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings of the notes to consolidated financial statements.
| ITEM 1A. | Risk Factors | ||||
There have been no material changes in the Risk Factors described in the Corporation’s 2025 Annual Report on Form 10-K.
| ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||||
During the second quarter of 2026, the Corporation repurchased $0.7 million of common stock, all of which were related to tax withholding on equity compensation. The repurchase details are presented in the table below:
Common Stock Purchases
Total Number of Shares Purchased(a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(b) | |||||||||||
| Period | ||||||||||||||
| April 1, 2026 - April 30, 2026 | 2,614 | $ | 26.74 | — | ||||||||||
| May 1, 2026 - May 31, 2026 | 17,840 | 28.21 | — | |||||||||||
| June 1, 2026 - June 30, 2026 | 2,935 | 27.54 | — | |||||||||||
| Total | 23,389 | $ | 27.96 | — | 6,950,375 | |||||||||
(a) During the second quarter of 2026, the Corporation repurchased 23,389 shares for minimum tax withholding settlements on equity compensation. These purchases do not count against the maximum value of shares remaining available for purchase under the Board of Directors' 2021 and 2026 authorization.
(b) On January 27 and April 28, 2026, the Board of Directors authorized the repurchase of up to $100 million each of the Corporation's common stock. This repurchase authorization was in addition to the authority remaining under the previous program. At June 30, 2026, there remained $213.9 million authorized to be repurchased in the aggregate. Approximately 7.0 million shares of common stock remained available to be repurchased under this Board authorization given the closing share price on June 30, 2026.
Repurchases under Board authorized repurchase programs are subject to any necessary regulatory approvals and other limitations and may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchases, or similar facilities.
| ITEM 5. | Other Information | ||||
During the three months ended June 30, 2026, no director or "officer" of the Corporation adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
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| ITEM 6. | Exhibits | ||||
(a) Exhibits:
Exhibit (31.1), Certification Under Section 302 of Sarbanes-Oxley by Andrew J. Harmening, Chief Executive Officer. | ||
Exhibit (31.2), Certification Under Section 302 of Sarbanes-Oxley by Derek S. Meyer, Chief Financial Officer. | ||
Exhibit (32), Certification by the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley. | ||
Exhibit (101), Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | ||
Exhibit (104), The cover page from the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 has been formatted in Inline XBRL (Inline Extensible Business Reporting Language) and contained in Exhibits in 101. | ||
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| Signatures | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ASSOCIATED BANC-CORP | ||||||||
| (Registrant) | ||||||||
Date: August 4, 2026 | /s/ Andrew J. Harmening | |||||||
| Andrew J. Harmening | ||||||||
| President and Chief Executive Officer | ||||||||
Date: August 4, 2026 | /s/ Derek S. Meyer | |||||||
| Derek S. Meyer | ||||||||
| Chief Financial Officer | ||||||||
Date: August 4, 2026 | /s/ Ryan J. Beld | |||||||
| Ryan J. Beld | ||||||||
| Chief Accounting Officer | ||||||||
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