ASSOCIATED BANC-CORP
For the period ended Sep 30, 2026. Filed Oct 27, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 27, 2026
ASB$30.36-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000007789-26-000202
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-27.
0000007789-26-000260
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 215 previous paragraphs and 216 current paragraphs.
145 unchanged; 58 reworded; 13 added; 12 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
•Average deposits of $38.9 billion increased $4.3 billion, or 12%, from the first nine months of 2025, primarily due to the American National acquisition.
Current report
•Net interest income of $1.1 billion increased $163.3 million, or 18%, from the first nine months of 2025, and net interest margin was 3.14%, compared to 3.02% for the first nine months of 2025. These increases were driven by the acquisition of American National in the second quarter of 2026. Additionally, the increase in interest income reflected the continued shift in earning asset mix from lower-yielding residential mortgage loans to higher-yielding commercial and business lending. The decrease in interest expense was driven by lower market interest rates and a favorable shift in deposit mix away from higher-cost money market and brokered CD deposits toward lower-cost funding sources, including savings and other time deposits, and noninterest-bearing demand deposits. Net interest margin benefited from these factors, as reductions in funding costs more than offset the decline in earning asset yields resulting from the repricing of variable-rate assets in the lower interest rate environment.
Current report
•Noninterest expense of $751.4 million increased $115.2 million, or 18%, from the first nine months of 2025. The increase was primarily attributable to the American National acquisition, including recurring expenses such as personnel costs associated with new colleagues and amortization of CDI. The acquisition also resulted in nonrecurring expenses, including severance and retention bonuses impacting personnel expense, contract termination costs increasing technology expense, and transaction and integration-related legal and professional fees. In addition, technology expense increased due to higher subscription costs, increased equipment expense resulting from elevated small equipment purchases, and increased legal and professional expense due to information technology augmentation costs. These increases were offset by a gain on sale of an OREO property in the third quarter of 2026.
Current report
•Card-based fees increased $6.3 million compared to the first nine months of 2025, due to organic increases in interchange fee income as well as additional income from increased card-based activity as a result of the American National acquisition.
Current report
•Asset gains, net increased $3.6 million compared to the first nine months of 2025, primarily due to valuation changes on deferred compensation plan assets whose impact is fully offset in personnel expense. The increase in asset gains, net was also driven by an increase in equity investment valuations, partially offset by losses on leases.
Current report
•Personnel expense increased $63.5 million compared to the first nine months of 2025, primarily due to increased recurring costs associated with employees added through the American National acquisition. The increase also reflected nonrecurring severance costs and retention bonuses related to integration activities.
Current report
•Technology expense increased $23.1 million compared to the first nine months of 2025, driven by an increase in ongoing subscription costs as well as nonrecurring termination fees for subscriptions associated with the integration of American National.
Current report
•Equipment expense increased $3.1 million compared to the first nine months of 2025, driven by increased equipment and supplies purchased for newly acquired American National locations and employees.
Current report
•Other expense decreased $4.5 million compared to the first nine months of 2025, driven by gains on sale of an OREO property and decreased OREO writedowns. These were partially offset by increased card-based expenses due to increased activity as a result of the American National acquisition.
Current report
◦Accrued expenses and other liabilities of $676.9 million at September 30, 2026 were up $213.8 million or 46% from December 31, 2025 primarily due to changes within the customer back-to-back derivative portfolio as a result of interest rate increases.
Current report
Average earning assets increased $215.9 million to $47.5 billion in the third quarter of 2026. Driven primarily by growth in commercial and industrial and real estate construction offset by decreases in CRE-owner occupied and residential mortgage, average loans increased $326.8 million, or 1%. Average investments decreased $110.9 million, or 1% as portfolio runoff exceeded reinvestment activity. On the funding side, average total interest-bearing deposits increased $274.6 million, or 1%, primarily driven by growth in interest-bearing demand and savings offset by a reduction in brokered CDs. Due to decreases in FHLB advances and federal funds purchased as growth in lower-cost funding sources, including noninterest-bearing demand deposits, reduced our reliance on wholesale funding sources, average other funding decreased $311.2 million, or 6%.
Current report
Noninterest income for the third quarter of 2026 was $87.1 million, up $6.7 million, or 8% from the second quarter of 2026. This is due to an increase in capital markets, net due to higher syndication fee revenue. Additionally, there were increased earnings from our private equity investments in the third quarter of 2026.
Current report
Noninterest expense for the third quarter of 2026 was $260.3 million, up $44.1 million, or 20%, from the third quarter of 2025. The increase was primarily attributable to the acquisition of American National, including higher personnel costs resulting from increased salaries, health care costs and incentive compensation, increased technology expense primarily related to contract termination costs and subscription fees, higher occupancy expense associated with building maintenance and repairs, and increased amortization expense of the additional CDI recognized as part of the acquisition. These increases were partially offset by a lower other noninterest expense, primarily due to a gain on the sale of an OREO property recognized in the third quarter of 2026.
Removed paragraphs (12)
Previous report
•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.
Previous report
•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.
Previous report
•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.
Previous report
•Card-based fees increased $4.1 million from the first six months of 2025, primarily due to commercial loan charges and interchange fee income.
Previous report
•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.
Previous report
•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.
Previous report
•Technology expense increased $9.0 million from the first six months of 2025, driven by an increase in subscription costs.
Previous report
•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.
Previous report
•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.
Previous report
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.
Previous report
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.
Previous report
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.
Reworded paragraphs (58)
Previous wording
•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.
Current wording
•Average loans of $34.5 billion increased $4.0 billion, or 13%, from the first nine months of 2025, driven primarily by the American National acquisition and the organic growth in commercial and business lending portfolio.
Previous wording
•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.
Current wording
•Provision for credit losses was $44.4 million compared to $47.0 million for the first nine months of 2025, driven by nominal credit movement coupled with general macroeconomic trends. In addition, expected credit losses associated with acquired seasoned loans were largely recognized through purchase accounting following the adoption of ASU 2025-08, reducing the need for incremental provision expense associated with the acquired balances.
Previous wording
•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.
Current wording
•Noninterest income of $243.4 million increased $36.4 million, or 18%, from the first nine months of 2025. The increase was primarily driven by higher service charges and deposit account fees and card-based fees, reflecting, in part, the American National acquisition, higher wealth management fees resulting from increased trust and investment advisory revenue, increased capital markets revenue driven by elevated syndication fees and foreign exchange swap revenue, higher other asset gains due to valuation changes in deferred compensation plan assets whose impact is fully offset in personnel expense, and the absence of the 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.
Previous wording
•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.
Current wording
•Fully tax-equivalent net interest income and net interest income increased $163.0 million and $163.3 million, respectively or 18%, as compared to the first nine months of 2025. The average yield on earning assets decreased 19 bp, while the cost of interest-bearing liabilities decreased 37 bp from the first nine 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, the continued shift in the asset mix away from lower-yielding residential mortgages toward higher-yielding commercial loans partially offset the impact of lower market rates on earning asset yields, while rates paid on interest-bearing liabilities decreased due to lower market rates and a favorable shift in deposit mix toward lower-cost products. As a result, reductions in funding costs more than offset the decline in earning asset yields. See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market Risk for a discussion of interest rate risk and market risk.
Previous wording
•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.
Current wording
•Average earning assets increased $5.4 billion, or 14%, from the first nine months of 2025. Average loans increased $4.0 billion, or 13%, from the first nine months of 2025, primarily driven by loans acquired from American National as well as organic 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 Corporation's focus on relationship-based lending and balance sheet remix. Average investments increased $1.4 billion, or 15%, from the first nine months of 2025 due to the American National acquisition.
Previous wording
• 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.
Current wording
• Average interest-bearing liabilities increased $4.2 billion, or 13%, compared to the first nine months of 2025. Average interest-bearing deposits increased $3.2 billion, or 11% from the first nine months of 2025. This was primarily driven by the acquisition of American National along with organic increases in other time deposits and savings, partially offset by a decrease in brokered CDs. Average total funding increased $1.0 billion, or 28%, from the first nine months of 2025, primarily driven by an increase in FHLB advances related to funding for continued loan growth. Average noninterest-bearing demand deposits increased $1.1 billion, or 20%, driven by deposits acquired from the American National acquisition and organic growth from the first nine months of 2025.
Previous wording
•Wealth management fees increased $5.9 million from the first six months of 2025, primarily due to increased assets under management.
Current wording
•Wealth management fees increased $6.8 million compared to the first nine months of 2025, primarily due to increased assets under management.
Previous wording
•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.
Current wording
•Service charges and deposit account fees increased $6.9 million compared to the first nine months of 2025, due to organic increases in business demand deposit and overdraft account fees as well as additional income from American National deposit accounts acquired.
Previous wording
•Capital markets, net increased $3.9 million from the first six months of 2025, primarily from increased syndication fees and interest rate swaps.
Current wording
•Capital markets, net increased $3.8 million compared to the first nine months of 2025, primarily from increased syndication fees.
Previous wording
•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.
Current wording
•Loss on mortgage portfolio sale decreased $7.0 million compared to the first nine months of 2025, due to the balance sheet repositioning completed during the first quarter of 2025.
Previous wording
•Business development and advertising increased $2.2 million from the first six months of 2025, driven by marketing and advertising activities.
Current wording
•Business development and advertising increased $3.4 million compared to the first nine months of 2025, driven by marketing and advertising initiatives and nonrecurring advertising expenses associated with the American National acquisition.
Previous wording
•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.
Current wording
•Legal and professional expense increased $15.2 million compared to the first nine months of 2025, primarily due to nonrecurring expenses related to the American National acquisition.
Previous wording
•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.
Current wording
•Other intangible amortization increased $9.4 million compared to the first nine months of 2025, driven by additional amortization related to core deposit intangibles recognized as part of the American National acquisition.
Previous wording
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.
Current wording
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 $112.3 million for the nine months ended September 30, 2026, compared to income tax expense of $77.4 million for the nine months ended September 30, 2025. The Corporation's effective tax rate from continuing operations was 22.37% and 18.64% for the nine months ended September 30, 2026, and 2025, respectively. The increase in income tax expense of $34.9 million and higher effective tax rate during the first nine 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 nine months ended September 30, 2026, which reduced the relative impact of any recurring favorable rate drivers.
Previous wording
•At June 30, 2026, total assets were $51.8 billion, up $6.6 billion, or 15%, from December 31, 2025.
Current wording
•At September 30, 2026, total assets were $51.4 billion, up $6.2 billion, or 14%, from December 31, 2025.
Previous wording
◦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.
Current wording
◦Cash and due from banks were $644.5 million at September 30, 2026, up $69.8 million, or 12%, from December 31, 2025. Interest bearing deposits in other financial institutions were $982.9 million at September 30, 2026, down $161.3 million, or 14%, from December 31, 2025. See the Consolidated Statements of Cash Flows for detailed information on those fluctuations.
Previous wording
◦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.
Current wording
◦Available for sale investment securities were $6.2 billion at September 30, 2026, up $801.3 million or 15%, 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.
Previous wording
◦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.
Current wording
◦Regulatory stocks of $304.3 million at September 30, 2026 were up $51.8 million, or 21%, from December 31, 2025 primarily due to increases in FHLB advances to fund loan growth, which required additional purchases of FHLB stock. Increases in FRB stock were also required due to the increase in capital used to fund the American National acquisition.
Previous wording
◦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.
Current wording
◦Loans of $36.5 billion at September 30, 2026 were up $5.4 billion, or 17%, from December 31, 2025 primarily due to the American National acquisition and continued organic growth in the commercial and business lending 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.
Previous wording
◦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.
Current wording
◦Premises and equipment of $447.1 million at September 30, 2026, up $65.5 million, or 17% from December 31, 2025, primarily due to assets acquired from the American National acquisition. Other intangible assets, net of $110.1 million at September 30, 2026, increased $87.2 million, or 382% from December 31, 2025, due to the additional CDI recognized as part of the American National acquisition. See Note 3 Business Combinations of the notes to consolidated financial statements for additional detail.
Previous wording
•At June 30, 2026, total liabilities were $46.2 billion, up $5.9 billion, or 15%, from December 31, 2025.
Current wording
•At September 30, 2026, total liabilities were $45.9 billion, up $5.7 billion, or 14%, from December 31, 2025.
Previous wording
◦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.
Current wording
◦Total deposits of $40.4 billion at September 30, 2026 were up $4.8 billion or 14%, from December 31, 2025. The increase was primarily due to deposits assumed from the American National acquisition as well as organic growth in the customer base. See Note 3 Business Combinations for additional detail.
Previous wording
◦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.
Current wording
◦Federal funds purchased and securities sold under agreements to repurchase was $266.3 million at September 30, 2026, down $41.5 million, or 13%, from December 31, 2025. FHLB advances of $4.0 billion at September 30, 2026 were up $693.0 million, or 21%, from December 31, 2025. These changes were primarily driven by funding needs associated with loan growth and a mix shift from federal funds purchased and securities sold under agreements to repurchase to FHLB advances. See Note 9 Short and Long-Term Funding of the notes to consolidated financial statements for additional details.
Previous wording
•At June 30, 2026, the loans to deposits ratio was 91.32%, up from 87.65% at December 31, 2025.
Current wording
•At September 30, 2026, the loans to deposits ratio was 90.44%, up from 87.65% at December 31, 2025.
Previous wording
•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.
Current wording
•At September 30, 2026, total stockholders' equity was $5.5 billion, up $500.3 million, or 10%, 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. This was partially offset by the repurchase of $100.0 million of the Corporation's common stock in association with an accelerated share repurchase agreement executed during the third quarter of 2026.
Previous wording
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.
Current wording
At September 30, 2026, $25.0 billion, or 68%, of the loans outstanding and $21.4 billion, or 87%, of the commercial loans outstanding were floating rate, adjustable rate, re-pricing within one year, or maturing within one year.
Previous wording
(b) 63% of the total real estate exposure comes from REIT lines.
Current wording
(b) 64% of the total real estate exposure comes from REIT lines.
Previous wording
(c) 71% of credit intermediation and related activities exposure comes from mortgage warehouse lines.
Current wording
(c) 68% of credit intermediation and related activities exposure comes from mortgage warehouse lines.
Previous wording
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.
Current wording
Indirect Auto: The Corporation currently purchases retail sales contracts via a network of approved dealerships across 22 states throughout the Northeast, Mid-Atlantic, Midwest, and Great Plains regions of the United States. The dealerships finance the sale of automobiles and other recreational vehicles 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. Contracts for other recreational vehicles is a legacy business inherited from the acquisition of American National and is in runoff.
Previous wording
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.
Current wording
Other consumer: Other consumer consists of credit cards, 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.
Previous wording
•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.
Current wording
•Total nonaccrual loans increased $83.0 million, or 83%, from December 31, 2025, and increased $77.3 million, or 73%, from September 30, 2025. The increase from December 31, 2025 was primarily driven by an organic increase in commercial and industrial, residential mortgage, and auto finance lending, partially offset by a decrease in home equity. Additionally, nonaccrual loans acquired from American National contributed to the increase. The increase from September 30, 2025 was primarily driven by organic increases in commercial and industrial, residential mortgage, CRE - investor, and auto finance lending, partially offset by a decrease in home equity. Additionally, nonaccrual loans acquired from American National contributed to the increase. See Note 7 Loans of the notes to consolidated financial statements and Table 10 for additional disclosures on the changes in asset quality.
Previous wording
•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.
Current wording
•YTD net charge offs increased $11.4 million from September 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.
Previous wording
•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.
Current wording
•Total deposits, which are the Corporation's largest source of funds, increased $4.8 billion, or 14% from December 31, 2025, and increased $5.5 billion, or 16%, from September 30, 2025. The increases from December 31, 2025 and September 30, 2025, were driven by the American National acquisition as well as organic growth in the customer base causing increases in all deposit categories, except network transaction deposits and brokered CDs.
Previous wording
•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.
Current wording
•Estimated uninsured and uncollateralized deposits, excluding intercompany deposits, were 27.3% of total deposits at September 30, 2026 compared to 26.5% at December 31, 2025, and 24.9% at September 30, 2025. The increase was primarily driven by an increase in uninsured balances in business deposit accounts.
Previous wording
•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.
Current wording
•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 September 30, 2026, the Bank had $5.7 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 September 30, 2026, the Bank had $6.5 billion available for discount window borrowings.
Previous wording
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%.
Current wording
For the nine months ended September 30, 2026, net cash provided by operating and financing activities was $672.2 million and $623.6 million, respectively, while investing activities used net cash of $1.4 billion, for a net decrease in cash and cash equivalents of $92.8 million since year-end 2025. At September 30, 2026, assets of $51.4 billion increased $6.2 billion, or 14%, from year-end 2025. On the funding side, deposits of $40.4 billion increased $4.8 billion, or 14% from year-end 2025, short-term funding decreased $41.5 million, or 13%, and FHLB advances increased $693.0 million or 21%.
Previous wording
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%.
Current wording
For the nine months ended September 30, 2025, net cash provided by operating and financing activities was $397.6 million and $1.1 billion, respectively, while investing activities used net cash of $1.2 billion, for a net increase in cash and cash equivalents of $273.2 million since year-end 2024. At September 30, 2025, assets of $44.5 billion increased $1.4 billion, or 3%, from year-end 2024. On the funding side, deposits of $34.9 billion increased $233.4 million, or 1%, from year-end 2024, short-term funding decreased $70.7 million, or 15%, and FHLB advances increased $1.4 billion, or 74%, and senior and subordinated debt decreased $243.6 million, or 29%.
Previous wording
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.
Current wording
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 nine months of 2026.
Previous wording
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.
Current wording
See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, for information on the shares repurchased during the third quarter of 2026.
Previous wording
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.
Current wording
The Corporation reported net income of $146.6 million for the third quarter of 2026, compared to a net income of $123.6 million for the second quarter of 2026. Net income available to common equity was $143.7 million for the third quarter of 2026, or $0.77 and $0.76 for basic and diluted earnings per common share, respectively. Comparatively, the net income available to common equity for the second quarter of 2026 was $120.7 million, or $0.64 and $0.63 for basic and diluted earnings per common share, respectively.
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