ASSOCIATED BANC-CORP (ASB)

CIK: 0000007789. SIC: 6022 State Commercial Banks. Latest 10-K as of: 2026-02-12.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=7789. Latest filing source: 0000007789-26-000071.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000007789.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000007789.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0000007789-26-000141.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-04-28. Report date: 2026-03-31.

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 $31.3 billion increased $1.2 billion, or 4%, from the first three months of 2025, driven primarily by an increase in commercial and business lending, auto finance, and real estate construction; partially offset by decreases in residential mortgage and other commercial real estate - investor.

•Average deposits of $35.2 billion increased $327.5 million, or 1%, from the first three months of 2025, driven by increases in all deposit types except brokered CDs, interest-bearing demand, and money market.

•Net interest income of $307.2 increased $21.2 million, or 7%, from the first three months of 2025, and net interest margin was 3.03%, compared to 2.97% for the first three months of 2025. The increases in net interest income and net interest margin were driven by increases average balances of interest earning assets alongside a decrease in rates for interest-bearing liabilities.

•Provision for credit losses was $11.0 million compared to $13.0 million for the first three months of 2025, driven by nominal credit movement coupled with general macroeconomic trends.

•Noninterest income of $75.9 million increased $17.1 million, or 29%, from the first three months of 2025, primarily due to higher wealth management fees and mortgage banking revenue as well as the absence of a loss on mortgage portfolio sale that was 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 $219.2 million increased $8.5 million, or 4%, from the first three months of 2025, primarily due to an increase in personnel expense, primarily driven by increases in health care benefit costs and annual incentive accruals based on increased FTEs in incentive eligible roles; partially offset by a decrease in other noninterest expense, due to elevated OREO write downs in 2025 as compared to 2026.

46

Table of Contents

Table 1 Summary Results of Operations: Trends

Quarter ended

(Dollars in thousands, except per share data)

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Net income

$

119,635 

$

137,129 

$

124,732 

$

111,230 

$

101,687 

Net income available to common equity

116,760 

134,254 

121,857 

108,355 

98,812 

Earnings per common share - basic

0.70 

0.81 

0.73 

0.65 

0.60 

Earnings per common share - diluted

0.70 

0.80 

0.73 

0.65 

0.59 

Dividend payout ratio(a)

34.29 

%

29.63 

%

31.51 

%

35.38%

38.33 

%

Book value / share(b)

29.04 

28.81 

28.17 

27.67 

27.09 

Tangible book value (TBV) / share(b)(c)

22.23 

22.01 

21.36 

20.84 

20.25 

Performance ratios

Return on average assets(d)

1.08 

%

1.23 

%

1.12 

%

1.03 

%

0.97 

%

Return on average tangible assets(c)(d)

1.12 

%

1.27 

%

1.17 

%

1.07 

%

1.01 

%

Return on average equity(d)

9.69 

%

11.09 

%

10.26 

%

9.43 

%

8.91 

%

Return on average tangible common equity (ROATCE)(c)(d)

13.03 

%

15.04 

%

14.02 

%

12.96 

%

12.34 

%

Efficiency ratios (expense / revenue)

Fully tax-equivalent efficiency ratio

56.03 

%

55.21 

%

54.77 

%

55.81 

%

59.72 

%

Adjusted efficiency ratio(c)

55.77 

%

55.15 

%

54.77 

%

55.81 

%

58.55 

%

(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.

47

Table of Contents

Table 2 Net Interest Income Analysis

Three Months Ended,

Mar 31, 2026

December 31, 2025(a)

Mar 31, 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

$

11,776,702 

$

172,507 

5.94%

$

11,588,059 

$

182,101 

6.24%

$

10,583,318 

$

169,785 

6.50%

Commercial real estate—owner occupied

1,190,708 

15,968 

5.44%

1,157,531 

16,358 

5.61%

1,141,167 

16,200 

5.76%

Commercial and business lending

12,967,410 

188,475 

5.89%

12,745,590 

198,459 

6.18%

11,724,484 

185,985 

6.43%

Commercial real estate—investor

5,277,283 

78,154 

6.01%

5,291,562 

84,153 

6.31%

5,415,412 

87,089 

6.52%

Real estate construction

2,055,338 

34,043 

6.72%

1,974,318 

34,870 

7.01%

1,898,582 

33,945 

7.25%

Commercial real estate lending

7,332,621 

112,197 

6.21%

7,265,880 

119,023 

6.50%

7,313,994 

121,034 

6.71%

Total commercial

20,300,031 

300,672 

6.01%

20,011,470 

317,482 

6.30%

19,038,479 

307,020 

6.54%

Residential mortgage

6,831,984 

64,640 

3.78%

6,899,778 

64,779 

3.76%

7,256,320 

66,823 

3.68%

Auto finance

3,125,504 

41,969 

5.45%

3,064,457 

42,915 

5.56%

2,844,730 

39,176 

5.59%

Home equity

709,865 

11,692 

6.60%

706,923 

12,570 

7.11%

657,625 

12,052 

7.34%

Other consumer

314,118 

8,504 

10.98%

312,730 

8,454 

10.72%

313,828 

8,773 

11.34%

Total consumer

10,981,471 

126,805 

4.65%

10,983,888 

128,718 

4.67%

11,072,503 

126,824 

4.61%

Total loans

31,281,502 

427,477 

5.53%

30,995,358 

446,200 

5.72%

30,110,982 

433,844 

5.83%

Investments

Taxable securities

7,071,751 

75,676 

4.28%

6,912,251 

73,511 

4.25%

6,398,584 

69,788 

4.36%

Tax-exempt securities(b)

1,978,501 

17,389 

3.52%

1,990,389 

17,534 

3.52%

2,016,144 

17,666 

3.50%

Other short-term investments

1,016,795 

11,641 

4.64%

972,884 

11,294 

4.61%

757,227 

9,243 

4.95%

Total investments

10,067,047 

104,706 

4.17%

9,875,524 

102,339 

4.14%

9,171,955 

96,696 

4.22%

Total earning assets and related interest income

41,348,549 

$

532,183 

5.20%

40,870,882 

$

548,539 

5.34%

39,282,937 

$

530,540 

5.45%

Other assets, net

3,670,399 

3,531,889 

3,347,690 

Total assets

$

45,018,948 

$

44,402,771 

$

42,630,627 

Liabilities and stockholders' equity

Interest-bearing liabilities

Interest-bearing deposits

Savings

$

5,532,848 

$

17,690 

1.30%

$

5,436,968 

$

18,823 

1.37%

$

5,162,468 

$

17,929 

1.41%

Interest-bearing demand

7,886,442 

34,236 

1.76%

8,054,088 

40,309 

1.99%

8,031,707 

45,430 

2.29%

Money market

6,061,442 

34,239 

2.29%

5,890,836 

35,353 

2.38%

6,079,551 

39,560 

2.64%

Network transaction deposits

1,917,854 

17,502 

3.70%

2,090,587 

20,882 

3.96%

1,847,972 

20,067 

4.40%

Brokered CDs

3,528,294 

34,811 

4.00%

3,998,012 

42,056 

4.17%

4,315,311 

49,292 

4.63%

Other time deposits

4,234,785 

36,795 

3.52%

4,093,939 

37,355 

3.62%

3,756,332 

36,862 

3.98%

Total interest-bearing deposits

29,161,665 

175,273 

2.44%

29,564,430 

194,778 

2.61%

29,193,341 

209,140 

2.91%

Federal funds purchased and securities sold under agreements to repurchase

425,142 

3,732 

3.56%

289,679 

2,682 

3.67%

375,910 

3,622 

3.91%

FHLB advances

3,380,379 

31,570 

3.79%

2,504,464 

26,309 

4.17%

1,595,972 

16,090 

4.09%

Senior and subordinated debt

594,401 

10,163 

6.84%

594,104 

10,483 

7.06%

627,371 

11,085 

7.07%

Other interest-bearing liabilities

11,212 

116 

4.18%

13,212 

110 

3.29%

31,599 

408 

5.24%

Total funding

4,411,134 

45,581 

4.18%

3,401,459 

39,584 

4.63%

2,630,852 

31,205 

4.79%

Total interest-bearing liabilities and related interest expense

33,572,799 

$

220,854 

2.67%

32,965,889 

$

234,362 

2.82%

31,824,193 

$

240,345 

3.06%

Noninterest-bearing demand deposits

5,999,278 

6,064,487 

5,640,123 

Other liabilities

440,344 

464,838 

535,732 

Stockholders’ equity

5,006,527 

4,907,557 

4,630,578 

Total liabilities and stockholders’ equity

$

45,018,948 

$

44,402,771 

$

42,630,627 

Interest rate spread

2.53%

2.52%

2.39%

Net free funds

0.50%

0.55%

0.58%

Fully tax-equivalent net interest income and net interest margin

$

311,329 

3.03%

$

314,177 

3.06%

$

290,195 

2.97%

Fully tax-equivalent adjustment

(4,139)

(4,196)

(4,254)

Net interest income

$

307,190 

$

309,981 

$

285,941 

(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%.

(c) Loans held for sale have been included in the average balances.

48

Table of Contents

Notable Contributions to the Change in Net Interest Income

•Fully tax-equivalent net interest income and net interest income increased $21.1 million and $21.2 million, or 7%, as compared to the first three months of 2025, respectively. The average yield on earning assets decreased 25 bp and the cost of interest-bearing liabilities decreased 39 bp from the first three months of 2025. The increase in net interest income was primarily driven by higher earning assets along with an improved interest rate spread.  Asset yields benefitted from an asset mix shift away from lower yielding residential mortgages to higher yielding commercial and industrial loans, while interest bearing liability r

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-12. Report date: 2025-12-31.

ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion is management’s analysis to assist in the understanding and evaluation of the consolidated financial condition and results of operations of the Corporation. It should be read in conjunction with the consolidated financial statements and footnotes and the selected financial data presented elsewhere in this report. Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes.

The detailed financial discussion that follows focuses on 2025 results compared to 2024. For a discussion of 2024 results compared to 2023, see the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024.

Overview

The Corporation is a bank holding company headquartered in Wisconsin, providing a broad array of banking and nonbanking products and services to businesses and consumers primarily within our four-state footprint. The Corporation’s primary sources of revenue, through the Bank, are net interest income (predominantly from loans and investment securities) and noninterest income (principally fees and other revenue from financial services provided to customers or ancillary services tied to loans and deposits).

Performance Summary

•Average loans of $30.6 billion for the full year of 2025 increased $892.7 million, or 3%, from 2024, driven primarily by increases in commercial and business lending and auto finance loans, partially offset by a decrease in residential mortgage lending due to the mortgage portfolio sale announced as part of the balance sheet repositioning in the fourth quarter of 2024.

•Average deposits of $34.8 billion for the full year of 2025 increased $1.5 billion, or 4%, from 2024, driven by increases in all deposit types, except money market and brokered CDs.

•Net interest income of $1.2 billion in 2025 increased $153.9 million, or 15%, from 2024. Net interest margin of 3.03% in 2025 increased 25 bp from 2.78% in 2024. The increases in net interest income and net interest margin were driven by decreases in interest expense for interest-bearing deposits and the balance sheet repositioning announced in the fourth quarter of 2024 which sold lower yielding residential mortgage loans and investment securities.

•Provision for credit losses was $54.0 million in 2025, compared to $85.0 million in 2024, driven by nominal credit movement coupled with general macroeconomic trends.

•Noninterest income of $286.4 million in 2025 increased $295.8 million from 2024, primarily driven by nonrecurring losses on the sale of mortgages and investments in 2024 associated with the balance sheet repositioning announced in the fourth quarter of 2024. Additional increases were due to increased capital markets revenue from an elevated level of activity in our syndications, interest rate swaps and foreign currency businesses. The increases were partially offset by the nonrecurring loss recognized related to the settlement of the mortgage loan sale in the first quarter of 2025 as part of the balance sheet repositioning announced in the fourth quarter of 2024.

•Noninterest expense of $855.6 million in 2025 increased $37.2 million, or 5%, from 2024, primarily driven by increases in personnel expense reflective of higher variable compensation, which is the result of strong execution against our strategic plan and increased healthcare costs, business development and advertising expense increase due to additional spend on advertising, legal and professional expenses due to increased consultant and IT staff augmentation expenditures, and other noninterest expense primarily due to OREO write downs in 2025. These increases were offset by a decrease in loss on prepayments of FHLB advances due to the nonrecurring fee incurred in 2024 due to the prepayment of long-term FHLB advances.

43

Table 1 Summary Results of Operations: Trends

Year Ended December 31,

(Dollars in thousands, except per share data)

2025

2024

2023

Net income

$

474,777 

$

123,145 

$

182,956 

Net income available to common equity

463,277 

111,645 

171,456 

Earnings per common share - basic

2.79 

0.73 

1.14 

Earnings per common share - diluted

2.77 

0.72 

1.13 

Dividend payout ratio(a)

33.33 

%

121.92 

%

74.56 

%

Performance ratios

Return on average assets

1.09 

%

0.30 

%

0.45 

%

Return on average tangible assets(b)

1.13 

%

0.32 

%

0.48 

%

Return on average equity

9.95 

%

2.86 

%

4.45 

%

Return on average tangible common equity (ROATCE)(b)

13.63 

%

3.99 

%

6.44 

%

Efficiency ratios (expense / revenue)

Fully tax-equivalent efficiency ratio

56.29 

%

67.64 

%

68.16 

%

Adjusted efficiency ratio(b)

56.01 

%

59.34 

%

58.79 

%

N/M = Not Meaningful

(a) Ratio is based upon basic earnings per common share.

(b) This is a non-GAAP financial measure. See Table 23 Non-GAAP Measures for a reconciliation to GAAP financial measures.

44

Income Statement Analysis

Net Interest Income

Net interest income is the primary source of the Corporation’s revenue. Net interest income is the difference between interest income on interest-earning assets, such as loans and investment securities, and the interest expense on interest-bearing deposits and other borrowings used to fund interest-earning and other assets or activities. Net interest income is affected by the amount and composition of earning assets and interest-bearing liabilities, as well as the sensitivity of the balance sheet to changes in interest rates, including characteristics such as the fixed or variable nature of the financial instruments, contractual maturities, re-pricing frequencies, loan prepayment behavior, and the use of interest rate derivative financial instruments.

Interest rate spread and net interest margin are utilized to measure and explain changes in net interest income. Interest rate spread is the difference between the yield on earning assets and the rate paid on interest-bearing liabilities that fund those assets. The net interest margin is expressed as the percentage of net interest income to average earning assets. The net interest margin exceeds the interest rate spread because net free funds, principally noninterest-bearing demand deposits and stockholders’ equity, also support earning assets. To compare tax-exempt asset yields to taxable yields, the yield on tax-exempt loans and investment securities is computed on a fully tax-equivalent basis. Net interest income, interest rate spread, and net interest margin are discussed on a fully tax-equivalent basis.

Table 2 provides average daily balances of earning assets and interest-bearing liabilities, the associated interest income and expense, and the corresponding interest rates earned and paid, as well as net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis for the years ended December 31, 2025, 2024, and 2023. Table 2 presents additional information to facilitate the review and discussion of fully tax-equivalent net interest income, interest rate spread, and net interest margin.

45

Table 2 Net Interest Income Analysis

Years Ended December 31,

2025

2024(a)

2023(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

$

11,133,436 

$

718,887 

6.46 

%

$

9,967,970 

$

720,359 

7.23 

%

$

9,783,075 

$

679,257 

6.94 

%

Commercial real estate—owner occupied

1,129,614 

64,400 

5.70 

%

1,101,216 

66,605 

6.05 

%

1,048,201 

60,760 

5.80 

%

Commercial and business lending

12,263,050 

783,287 

6.39 

%

11,069,185 

786,963 

7.11 

%

10,831,275 

740,017 

6.83 

%

Commercial real estate—investor

5,396,914 

349,925 

6.48 

%

5,053,175 

363,187 

7.19 

%

5,165,710 

363,158 

7.03 

%

Real estate construction

1,933,910 

139,468 

7.21 

%

2,217,064 

175,041 

7.90 

%

2,148,940 

156,870 

7.30 

%

Commercial real estate lending

7,330,824 

489,393 

6.68 

%

7,270,239 

538,228 

7.40 

%

7,314,651 

520,028 

7.11 

%

Total commercial

19,593,874 

1,272,680 

6.50 

%

18,339,424 

1,325,191 

7.23 

%

18,145,926 

1,260,045 

6.94 

%

Residential mortgage

7,043,508 

262,150 

3.72 

%

7,907,962 

278,804 

3.53 

%

8,696,706 

293,446 

3.37 

%

Auto finance

2,961,544 

165,476 

5.59 

%

2,576,979 

144,892 

5.62 

%

1,793,959 

89,454 

4.99 

%

Home equity

680,716 

49,361 

7.25 

%

607,044 

52,404 

8.63 

%

619,507 

49,243 

7.95 

%

Other consumer

310,429 

34,843 

11.22 

%

265,951 

30,982 

11.65 

%

278,195 

30,946 

11.12 

%

Total consumer

10,996,197 

511,830 

4.65 

%

11,357,935 

507,083 

4.46 

%

11,388,367 

463,088 

4.07 

%

Total loans

30,590,071 

1,784,510 

5.83 

%

29,697,360 

1,832,274 

6.17 

%

29,534,293 

1,723,134 

5.83 

%

Investments

Taxable securities

6,665,988 

288,200 

4.32 

%

5,690,238 

199,424 

3.50 

%

5,243,805 

146,006 

2.78 

%

Tax-exempt securities(b)

2,002,085 

70,377 

3.52 

%

2,111,523 

71,458 

3.38 

%

2,288,328 

79,673 

3.48 

%

Other short-term investments

944,904 

46,568 

4.93 

%

668,730 

37,291 

5.58 

%

564,284 

28,408 

5.03 

%

Total investments

9,612,977 

405,145 

4.21 

%

8,470,491 

308,173 

3.64 

%

8,096,417 

254,087 

3.14 

%

Total earning assets and related interest income

$

40,203,048 

$

2,189,655 

5.45 

%

$

38,167,851 

$

2,140,446 

5.61 

%

$

37,630,710 

$

1,977,221 

5.25 

%

Other assets, net

3,420,064 

3,166,002 

3,018,214 

Total assets

$

43,623,112 

$

41,333,853 

$

40,648,923 

Liabilities and stockholders' equity

Interest-bearing liabilities

Interest-bearing deposits

Savings

$

5,290,992 

$

72,932 

1.38 

%

$

5,080,045 

$

85,450 

1.68 

%

$

4,773,366 

$

63,945 

1.34 

%

Interest-bearing demand

7,917,003 

172,987 

2.19 

%

7,443,738 

193,900 

2.60 

%

6,904,514 

154,136 

2.23 

%

Money market

5,954,259 

151,669 

2.55 

%

5,994,171 

181,444 

3.03 

%

6,668,930 

177,311 

2.66 

%

Network transaction deposits

1,929,731 

82,437 

4.27 

%

1,645,695 

85,788 

5.21 

%

1,469,616 

75,294 

5.12 

%

Brokered CDs

4,078,557 

179,645 

4.40 

%

4,240,621 

221,157 

5.22 

%

2,687,316 

137,280 

5.11 

%

Other time deposits

3,885,386 

144,248 

3.71 

%

3,240,865 

134,065 

4.14 

%

2,218,432 

65,658 

2.96 

%

Total interest-bearing deposits

29,055,928 

803,918 

2.77 

%

27,645,135 

901,804 

3.26 

%

24,722,174 

673,624 

2.72 

%

Federal funds purchased and securities sold under agreements to repurchase

278,104 

10,415 

3.75 

%

272,069 

11,754 

4.32 

%

345,519 

12,238 

3.54 

%

Other short-term funding

20,177 

1,016 

5.04 

%

403,214 

20,420 

5.06 

%

8,582 

1 

0.01 

%

FHLB advances

2,630,034 

113,253 

4.31 

%

1,793,734 

98,520 

5.49 

%

3,741,790 

196,535 

5.25 

%

Other long-term funding

601,867 

43,009 

7.15 

%

640,842 

45,781 

7.14 

%

504,438 

36,080 

7.15 

%

Total short and long-term funding

3,530,182 

167,693 

4.75 

%

3,109,859 

176,475 

5.67 

%

4,600,329 

244,855 

5.32 

%

Total interest-bearing liabilities and related interest expense

$

32,586,110 

$

971,611 

2.98 

%

$

30,754,994 

$

1,078,279 

3.51 

%

$

29,322,503 

$

918,479 

3.13 

%

Noninterest-bearing demand deposits

5,788,743 

5,745,960 

6,620,965 

Other liabilities

474,382 

530,537 

594,318 

Stockholders’ equity

4,773,877 

4,302,362 

4,111,138 

Total liabilities and stockholders’ equity

$

43,623,112 

$

41,333,853 

$

40,648,923 

Interest rate spread

2.46 

%

2.10 

%

2.12 

%

Net free funds

0.56 

%

0.68 

%

0.69 

%

Fully tax-equivalent net interest income and net interest margin

$

1,218,044 

3.03 

%

$

1,062,167 

2.78 

%

$

1,058,742 

2.81 

%

Fully tax-equivalent adjustment

(16,899)

(14,919)

(19,168)

Net interest income

$

1,201,145 

$

1,047,248 

$

1,039,573 

(a) Prior periods have 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%.

(c) Loans held for sale have been included in the average balances.

Notable Contributions to the Change in 2025 Net Interest Income

•Fully tax-equivalent net interest income was up $155.9 million and net interest income was up $153.9 million, or 15%, compared to 2024. The average yield on earning assets decreased 16 bp compared to 2024 and the cost of interest-bearing liabilities decreased 53 bp from 2024. The increase in net interest income was driven, in part, by the actions taken by the

46

Corporation as part of the balance sheet repositioning announced in the fourth quarter of 2024 which sold off lower yielding investment securities and residential mortgages. Additionally, continued organic investment activity in the AFS portfolio during 2025 drove higher average investment balances contributing to interest income expansion. Finally, given that the Corporation is slightly asset sensitive, the Federal Reserve decreasing the federal funds target interest rate by 100 bp in the second half of 2024 and 75 bp in the second half of 2025 caused contraction in the interest income earned on loans; however, this contraction was more than offset by the repricing of deposits downward, in line with market rates, resulting in lower interest expense on interest-bearing deposits. 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 $2.0 billion, or 5% , from 2024. Average loans increased $892.7 million, or 3%, compared to 2024, driven by increases in commercial and industrial loans, auto loans, and commercial real estate lending, partially offset by a decrease in residential mortgage as a result of our balance sheet repositioning announced in the fourth quarter of 2024. Average investments increased $1.1 billion, or 13%, compared to 2024, due to organic investment activity.

•Average interest-bearing liabilities increased $1.8 billion, or 6%, compared to 2024. Average interest-bearing deposits increased $1.4 billion, or 5%, compared to 2024, driven by increases in most deposit types except brokered CDs and money market which decreased slightly. Average total short and long-term funding increased $420.3 million, or 14%, from 2024, primarily driven by an increase in FHLB funding, partially offset by a decrease in other short-term funding related to the payoff of BTFP advances in October 2024. Average noninterest-bearing demand deposits increased $42.8 million, or 1%, compared to 2024.

47

Table 3 Rate/Volume Analysis(a)

2025 Compared to 2024

Increase (Decrease) Due to

2024 Compared to 2023

Increase (Decrease) Due to(b)

 (Dollars in thousands)

Volume

Rate

Net

Volume

Rate

Net

Interest income

Loans(c)(d)

Commercial and industrial

$

79,531 

$

(81,002)

$

(1,471)

$

12,900 

$

28,201 

$

41,101 

Commercial real estate—owner occupied

1,687 

(3,892)

(2,205)

3,165 

2,679 

5,844 

Commercial and business lending

81,218 

(84,894)

(3,676)

16,066 

30,880 

46,946 

Commercial real estate—investor

23,714 

(36,976)

(13,262)

(8,003)

8,032 

29 

Real estate construction

(21,202)

(14,371)

(35,573)

5,087 

13,083 

18,171 

Commercial real estate lending

2,512 

(51,347)

(48,835)

(2,915)

21,115 

18,200 

Total commercial

83,730 

(136,241)

(52,511)

13,150 

51,996 

65,146 

Residential mortgage

(31,602)

14,948 

(16,654)

(27,413)

12,771 

(14,641)

Auto finance

21,493 

(909)

20,584 

42,899 

12,539 

55,438 

Home equity

5,921 

(8,964)

(3,043)

(1,005)

4,167 

3,162 

Other consumer

5,026 

(1,165)

3,861 

(1,398)

1,434 

36 

Total consumer

838 

3,910 

4,748 

13,083 

30,912 

43,994 

Total loans

84,568 

(132,331)

(47,763)

26,233 

82,907 

109,140 

Investments

Taxable securities

37,579 

51,197 

88,776 

13,226 

40,191 

53,418 

Tax-exempt securities(c)

(3,786)

2,705 

(1,081)

(6,029)

(2,186)

(8,215)

Other short-term investments

14,004 

(4,727)

9,277 

5,616 

3,267 

8,883 

Total investments

47,797 

49,175 

96,972 

12,813 

41,272 

54,086 

Total earning assets

$

132,365 

$

(83,156)

$

49,209 

$

39,046 

$

124,180 

$

163,226 

Interest expense

Savings

$

3,428 

$

(15,946)

$

(12,518)

$

4,319 

$

17,186 

$

21,505 

Interest-bearing demand

11,765 

(32,678)

(20,913)

12,678 

27,085 

39,763 

Money market

(1,200)

(28,575)

(29,775)

(18,989)

23,123 

4,134 

Network transaction deposits

13,501 

(16,852)

(3,351)

9,159 

1,336 

10,495 

Brokered CDs

(8,194)

(33,318)

(41,512)

80,992 

2,885 

83,876 

Other time deposits

24,859 

(14,676)

10,183 

36,727 

31,679 

68,406 

Total interest-bearing deposits

44,159 

(142,045)

(97,886)

124,886 

103,294 

228,180 

Federal funds purchased and securities sold under agreements to repurchase

255 

(1,594)

(1,339)

(2,883)

2,399 

(484)

Other short-term funding

(19,297)

(107)

(19,404)

1,771 

18,648 

20,419 

FHLB advances

39,154 

(24,421)

14,733 

(106,619)

8,604 

(98,015)

Other long-term funding

(2,785)

13 

(2,772)

9,745 

(44)

9,701 

Total short and long-term funding

17,327 

(26,109)

(8,782)

(97,986)

29,606 

(68,380)

Total interest-bearing liabilities

61,486 

(168,154)

(106,668)

26,900 

132,900 

159,800 

Fully tax-equivalent net interest income (expense)

$

70,879 

$

84,998 

$

155,877 

$

12,146 

$

(8,721)

$

3,426 

(a) The change in interest due to both rate and volume has been allocated in proportion to the relationship to the dollar amounts of the change in each.

(b) Prior periods have been adjusted to conform with current period presentation.

(c) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.

(d) Loans held for sale have been included in the average balances used in the analysis.

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. The forecast the Corporation used for December 31, 2025 was the Moody's baseline scenario from November 2025, which was reviewed against the December 2025 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. See additional discussion under the sections titled Loans, Credit Risk, Nonperforming Assets, and Allowance for Credit Losses on Loans.

48

Noninterest Income

Table 4 Noninterest Income

Years Ended December 31,

$ Change

% Change

(Dollars in thousands, except as noted)

2025

2024

2023

2025 from 2024

2024 from 2023

2025 from 2024

2024 from 2023

Wealth management fees

$

96,579 

$

92,569 

$

82,502 

$

4,010 

$

10,067 

4 

%

12 

%

Service charges and deposit account fees

53,649 

51,642 

49,045 

2,007 

2,597 

4 

%

5 

%

Card-based fees

46,629 

46,921 

45,020 

(292)

1,901 

(1)

%

4 

%

Other fee-based revenue

21,216 

19,499 

17,268 

1,717 

2,231 

9 

%

13 

%

Capital markets, net

32,048 

22,084 

24,649 

9,964 

(2,565)

45 

%

(10)

%

Mortgage banking, net

14,502 

10,686 

19,429 

3,816 

(8,743)

36 

%

(45)

%

Loss on mortgage portfolio sale

(6,976)

(130,406)

(136,239)

123,430 

5,833 

(95)

%

(4)

%

Bank and corporate owned life insurance

17,195 

13,477 

10,266 

3,718 

3,211 

28 

%

31 

%

Asset gains (losses), net

1,565 

(1,042)

454 

2,607 

(1,496)

N/M

N/M

Investment securities gains (losses), net

49 

(144,147)

(58,903)

144,196 

(85,244)

N/M

145 

%

Other

9,944 

9,310 

9,691 

634 

(381)

7 

%

(4)

%

Total noninterest income (loss)

$

286,400 

$

(9,407)

$

63,182 

$

295,807 

$

(72,589)

N/M

N/M

Assets under management, at market value(a)

$

16,132 

$

14,773 

$

13,545 

$

1,359 

$

1,228 

9 

%

9 

%

N/M = Not Meaningful

(a) In millions. Excludes assets held in brokerage accounts.

Notable Contributions to the Change in 2025 Noninterest Income

•Capital markets increased $10.0 million from 2024, primarily due to an elevated level of activity in our interest rate swap, syndications, and foreign currency businesses.

•Mortgage banking increased $3.8 million from 2024, primarily as a result of increased gains on sales of mortgage loans originated for sale and MSR income impacts.

•Loss on mortgage portfolio sale decreased $123.4 million from 2024 driven by a nonrecurring $130.4 million loss on sale of mortgages recognized in 2024 following the balance sheet repositioning announced during the fourth quarter of 2024, and an additional $7.0 million loss that was recognized in 2025 upon completion of the sale.

•Bank and corporate owned life insurance increased $3.7 million 2024, driven by an increased number of claims.

•Asset gains (losses), net improved $2.6 million from 2024, driven primarily by deferred compensation valuation adjustments given market conditions.

•Investment securities (losses) gains, net improved $144.2 million from 2024, driven primarily by a nonrecurring $148.2 million net loss on a sale of investments associated with the balance sheet repositioning announced during the fourth quarter of 2024.

49

Noninterest Expense

Table 5 Noninterest Expense

Years Ended December 31,

$ Change

% Change

 (Dollars in thousands)

2025

2024

2023

2025 from 2024

2024 from 2023

2025 from 2024

2024 from 2023

Personnel

$

521,723 

$

487,956 

$

468,355 

$

33,767 

$

19,601 

7 

%

4 

%

Technology

110,877 

107,563 

102,018 

3,314 

5,545 

3 

%

5 

%

Occupancy

55,011 

54,622 

57,204 

389 

(2,582)

1 

%

(5)

%

Business development and advertising

31,614 

28,142 

28,405 

3,472 

(263)

12 

%

(1)

%

Equipment

20,277 

18,431 

19,663 

1,846 

(1,232)

10 

%

(6)

%

Legal and professional

23,934 

21,601 

19,911 

2,333 

1,690 

11 

%

8 

%

Loan and foreclosure costs

8,264 

8,471 

5,408 

(207)

3,063 

(2)

%

57 

%

FDIC assessment

36,713 

38,439 

67,072 

(1,726)

(28,633)

(4)

%

(43)

%

Other intangible amortization

8,811 

8,811 

8,811 

— 

— 

— 

%

— 

%

Loss on prepayments of FHLB advances

— 

14,243 

— 

(14,243)

14,243 

N/M

N/M

Other

38,415 

30,118 

36,837 

8,297 

(6,719)

28 

%

(18)

%

Total noninterest expense

$

855,639 

$

818,397 

$

813,682 

$

37,242 

$

4,715 

5 

%

1 

%

Average FTEs(a)

3,886 

4,030 

4,199 

(144)

(169)

(4)

%

(4)

%

Noninterest expense / average assets

1.96 

%

1.98 

%

2.00 

%

(a) Average FTEs without overtime

Notable Contributions to the Change in 2025 Noninterest Expense

•Personnel expense increased $33.8 million from 2024 largely driven by continued investment in our colleagues as we continue to execute on our growth strategy.

•Business development and advertising expense increased $3.5 million from 2024 primarily due to additional spend on advertising including direct mail and television production.

•Legal and professional expenses increased $2.3 million from 2024, primarily driven by increased consultant and IT staff augmentation expenses in the current year.

•The decrease in loss on prepayments of FHLB advances was due to the prepayment of $600.0 million of long-term FHLB advances in the fourth quarter of 2024, for which the Corporation incurred a nonrecurring loss of $14.2 million.

•Other noninterest expense increased $8.3 million from 2024 primarily due to OREO write downs in 2025 as compared to a gain on the sale of OREO properties in 2024 and higher donation expenditures in 2025.

Income Taxes

The Corporation recognized income tax expense of $103.1 million for 2025, compared to income tax expense of $11.3 million for 2024. The Corporation's effective tax rate was 17.85% for 2025, compared to an effective tax rate of 8.41% for 2024. The increase in income tax expense and higher effective tax rate during 2025 were primarily due to a strategic reallocation of the investment portfolio and the adoption of a legal entity rationalization plan that resulted in the recognition of deferred tax benefits in 2024 and increased net income in 2025.

See Note 1 Summary of Significant Accounting Policies of the notes to consolidated financial statements for the Corporation’s income tax accounting policy. 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. See Note 12 Income Taxes of the notes to consolidated financial statements for more information.

50

Balance Sheet Analysis

•At December 31, 2025, total assets were $45.2 billion, up $2.2 billion, or 5%, from December 31, 2024.

◦Interest bearing deposits in other financial institutions were $1.1 billion at December 31, 2025, up $690.5 million, or 152%, from December 31, 2024. Federal funds sold and securities purchased under agreement to resell were $1.4 million at December 31, 2025, down $20.6 million, or 94% from December 31, 2024. See Consolidated Statements of Cash Flows for detailed information.

◦AFS investment securities at fair value were $5.4 billion at December 31, 2025, up $816.1 million, or 18%, from December 31, 2024. Regulatory stocks were $252.5 million at December 31, 2025, up $72.8 million, or 41%, from December 31, 2024. See Note 2 Investment Securities of the notes to the consolidated financial statements for details on these changes.

◦Loans of $31.2 billion at December 31, 2025 were up $1.4 billion, or 5%, from December 31, 2024 primarily due to increases in commercial and business lending and auto finance loans, offset by a decrease in residential mortgage loans. See section Loans and Note 3 Loans of the notes to consolidated financial statements for additional details.

◦Residential loans held for sale were $72.5 million at December 31, 2025, down $574.2 million, or 89%, from December 31, 2024. The decrease from December 31, 2024 was a result of the mortgage portfolio sale announced as part of the balance sheet repositioning in the fourth quarter of 2024 and the sale closing in January 2025.

•At December 31, 2025, total liabilities were $40.2 billion, up $1.8 billion, or 5%, from December 31, 2024.

◦Short-term funding was $307.9 million at December 31, 2025, down $162.5 million, or 35%, from December 31, 2024. FHLB advances were $3.3 billion at December 31, 2025, up $1.4 billion, or 76%, from December 31, 2024. These changes were due to a mix shift in funding away from federal funds purchased to short-term FHLB advances. See Note 8 Short and Long-Term Funding of the notes to consolidated financial statements for additional details.

◦Other long-term funding was $594.3 million at December 31, 2025, down $243.4 million, or 29%, from December 31, 2024, primarily due to subordinated notes maturing in January 2025. See Note 8 Short and Long-Term Funding of the notes to consolidated financial statements for additional details.

◦Accrued expenses and other liabilities were $463.1 million, down $105.4 million, or 19%, from December 31, 2024, primarily due to decreases in derivative liabilities. See Note 13 Derivative and Hedging Activities of the notes to consolidated financial statements for additional details.

•At December 31, 2025, the loans to deposits ratio was 87.65%, up from 85.92% at December 31, 2024.

51

Loans

Table 6 Period End Loan Composition

As of December 31,

2025

2024

2023

 (Dollars in thousands)

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

Commercial and industrial

$

11,799,757 

38 

%

$

10,573,741 

36 

%

$

9,731,555 

33 

%

Commercial real estate — owner occupied

1,186,324 

4 

%

1,143,741 

4 

%

1,061,700 

4 

%

Commercial and business lending

12,986,081 

42 

%

11,717,483 

39 

%

10,793,255 

37 

%

Commercial real estate — investor

5,246,030 

17 

%

5,227,975 

18 

%

5,124,245 

18 

%

Real estate construction

1,994,642 

6 

%

1,982,632 

7 

%

2,271,398 

8 

%

Commercial real estate lending

7,240,672 

23 

%

7,210,607 

24 

%

7,395,644 

25 

%

Total commercial

20,226,753 

65 

%

18,928,090 

64 

%

18,188,898 

62 

%

Residential mortgage

6,793,957 

22 

%

7,047,541 

24 

%

7,864,891 

27 

%

Auto finance

3,106,498 

10 

%

2,810,220 

9 

%

2,256,162 

8 

%

Home equity

713,271 

2 

%

664,252 

2 

%

628,526 

2 

%

Other consumer

323,135 

1 

%

318,483 

1 

%

277,740 

1 

%

Total consumer

10,936,861 

35 

%

10,840,496 

36 

%

11,027,319 

38 

%

Total loans

$

31,163,614 

100 

%

$

29,768,586 

100 

%

$

29,216,218 

100 

%

Commercial real estate and real estate construction loan detail

Non-owner occupied

$

3,215,636 

61 

%

$

3,210,509 

61 

%

$

3,362,085 

66 

%

Multi-family

2,028,760 

39 

%

2,015,401 

39 

%

1,759,504 

34 

%

Farmland

1,634 

— 

%

2,065 

— 

%

2,656 

— 

%

Commercial real estate — investor

$

5,246,030 

100 

%

$

5,227,975 

100 

%

$

5,124,245 

100 

%

1-4 family construction

$

191,892 

10 

%

$

160,699 

8 

%

$

275,292 

12 

%

All other construction

1,802,750 

90 

%

1,821,933 

92 

%

1,996,106 

88 

%

Real estate construction

$

1,994,642 

100 

%

$

1,982,632 

100 

%

$

2,271,398 

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.

In the first quarter of 2025, the Corporation completed a mortgage portfolio sale of $722.9 million in residential mortgages at a loss of $130.4 million as part of the balance sheet repositioning announced during the fourth quarter of 2024. The proceeds of this sale were used to pay down long-term FHLB advances and reinvest into higher yielding investment securities.

During the fourth quarter of 2023, the Corporation completed a mortgage portfolio sale of $968.6 million of residential mortgages at a loss of $136.2 million related to the balance sheet repositioning announced during the fourth quarter of 2023. The proceeds of this sale were used to pay down higher cost funding and increase liquidity capacity.

52

The Corporation's loan distribution and interest rate sensitivity as of December 31, 2025 are summarized in the following table:

Table 7 Loan Distribution and Interest Rate Sensitivity

(Dollars in thousands)

Within 1 Year(a)

1-5 Years

5-15 Years

Over 15 Years

Total

% of Total

Fixed rate

Commercial and industrial

$

4,693,130 

$

1,007,322 

$

372,774 

$

470 

$

6,073,696 

19 

%

Commercial real estate — owner occupied

135,508 

245,098 

94,870 

— 

475,476 

2 

%

Commercial and business lending

4,828,638 

1,252,420 

467,644 

470 

6,549,172 

21 

%

Commercial real estate — investor

496,650 

259,389 

10,888 

— 

766,927 

2 

%

Real estate construction

287,453 

30,377 

8,865 

— 

326,695 

1 

%

Commercial real estate lending

784,103 

289,766 

19,753 

— 

1,093,622 

4 

%

Total commercial

5,612,741 

1,542,186 

487,397 

470 

7,642,794 

25 

%

Residential mortgage

7,636 

52,475 

309,644 

4,099,119 

4,468,874 

14 

%

Auto finance

5,191 

1,793,088 

1,308,219 

— 

3,106,498 

10 

%

Home equity

360 

5,318 

21,297 

7,555 

34,530 

— 

%

Other consumer

7,121 

27,959 

16,963 

4,839 

56,882 

— 

%

Total consumer

20,308 

1,878,840 

1,656,123 

4,111,513 

7,666,784 

25 

%

Total fixed rate loans

$

5,633,049 

$

3,421,026 

$

2,143,520 

$

4,111,983 

$

15,309,578 

49 

%

Floating or adjustable rate

Commercial and industrial

$

5,676,991 

$

48,522 

$

548 

$

— 

$

5,726,061 

18 

%

Commercial real estate — owner occupied

710,151 

697 

— 

— 

710,848 

2 

%

Commercial and business lending

6,387,142 

49,219 

548 

— 

6,436,909 

21 

%

Commercial real estate — investor

4,477,941 

1,162 

— 

— 

4,479,103 

14 

%

Real estate construction

1,667,485 

462 

— 

— 

1,667,947 

5 

%

Commercial real estate lending

6,145,426 

1,624 

— 

— 

6,147,050 

20 

%

Total commercial

12,532,568 

50,843 

548 

— 

12,583,959 

40 

%

Residential mortgage

199,876 

984,186 

1,140,966 

55 

2,325,083 

7 

%

Auto finance

— 

— 

— 

— 

— 

— 

%

Home equity

678,043 

698 

— 

— 

678,741 

2 

%

Other consumer

266,253 

— 

— 

— 

266,253 

1 

%

Total consumer

1,144,172 

984,884 

1,140,966 

55 

3,270,077 

10 

%

Total floating or adjustable rate loans

$

13,676,740 

$

1,035,727 

$

1,141,514 

$

55 

$

15,854,036 

51 

%

Total loans

$

19,309,789 

$

4,456,753 

$

3,285,034 

$

4,112,038 

$

31,163,614 

100 

%

(a) Demand loans, past due loans, overdrafts, and credit cards are reported in the “Within 1 Year” category.

At December 31, 2025, $21.5 billion, or 69%, of the total loans outstanding and $18.2 billion, or 90%, 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 are performed to monitor trends, financial performance, and concentrations. See Note 3 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 December 31, 2025, no significant concentrations existed in the Corporation’s loan portfolio in excess of 10% of total loan exposure.

53

Commercial and business lending: The commercial and business lending classification primarily includes commercial loans to large corporations, middle market companies, small businesses, and ABL and equipment financing.

Table 8 Largest Commercial and Industrial Industry Group Exposures, by NAICS Subsector

December 31, 2025

NAICS Subsector

Outstanding Balance

Total Exposure

% of Total Loan Exposure

(Dollars in thousands)

Utilities(a)

221 

$

3,009,210 

$

3,787,934 

9 

%

Real Estate(b)

531 

2,183,905 

3,757,948 

9 

%

Credit Intermediation and Related Activities(c)

522 

671,604 

1,331,594 

3 

%

Merchant Wholesalers, Durable Goods

423 

713,836 

1,212,061 

3 

%

(a) 68% of the total utilities exposure comes from renewable energy sources (wind, solar, hydroelectric, and geothermal).

(b) Includes REIT lines

(c) Includes 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: CRE-investor is comprised of loans secured by various non-owner occupied or investor income producing property types.

Table 9 Largest Commercial Real Estate - Investor Property Type Exposures

December 31, 2025

% of Total Loan Exposure

% of Total Commercial Real Estate - Investor Loan Exposure

Multi-Family

5 

%

37 

%

Industrial

3 

%

27 

%

Office

2 

%

16 

%

The remaining CRE-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 10 Largest Real Estate Construction Property Type Exposures

December 31, 2025

% of Total Loan Exposure

% of Total Real Estate Construction Loan Exposure

Multi-Family

5 

%

52 

%

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. The Corporation’s LTV guidelines are in compliance with regulatory supervisory limits. In most cases, for real estate construction loans, the loan

54

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.

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 three-state branch footprint, with approximately 88% of the outstanding loan balances in the Corporation's branch footprint at December 31, 2025. 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 adjustable-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%. 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 16 states throughout the Northeast, Mid-Atlantic, and Midwestern 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 student loans, short-term personal installment loans, and credit cards. 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.

55

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 11 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:

Table 11 Nonperforming Assets

As of December 31,

 (Dollars in thousands)

2025

2024

2023

Nonperforming assets

Commercial and industrial

$

7,178 

$

19,084 

$

62,022 

Commercial real estate — owner occupied

203 

1,501 

1,394 

Commercial and business lending

7,381 

20,585 

63,416 

Commercial real estate — investor

8,311 

16,705 

— 

Real estate construction

144 

30 

6 

Commercial real estate lending

8,455 

16,735 

6 

Total commercial

15,836 

37,320 

63,422 

Residential mortgage

68,492 

70,038 

71,142 

Auto finance

8,271 

7,402 

5,797 

Home equity

7,774 

8,378 

8,508 

Other consumer

55 

122 

128 

Total consumer

84,592 

85,941 

85,574 

Total nonaccrual loans

100,428 

123,260 

148,997 

Commercial real estate owned

25,530 

11,914 

914 

Residential real estate owned

2,414 

2,068 

1,290 

Bank properties real estate owned(a)

72 

6,235 

8,301 

OREO

28,016 

20,217 

10,506 

Repossessed assets

757 

687 

919 

Total nonperforming assets

$

129,201 

$

144,164 

$

160,421 

Accruing loans past due 90 days or more

Commercial

$

370 

$

642 

$

19,812 

Consumer(b)

2,444 

2,547 

1,876 

Total accruing loans past due 90 days or more

$

2,814 

$

3,189 

$

21,689 

Restructured loans (accruing)

Commercial

$

458 

$

475 

$

306 

Consumer

5,584 

3,057 

2,414 

Total restructured loans (accruing)

$

6,042 

$

3,531 

$

2,719 

Nonaccrual restructured loans (included in nonaccrual loans)

$

3,472 

$

2,581 

$

805 

Ratios

Nonaccrual loans to total loans

0.32 

%

0.41 

%

0.51 

%

NPAs to total loans plus OREO and repossessed assets

0.41 

%

0.48 

%

0.55 

%

NPAs to total assets

0.29 

%

0.34 

%

0.39 

%

Allowance for credit losses on loans to nonaccrual loans

417.56 

%

326.40 

%

258.98 

%

56

Table 11 Nonperforming Assets (continued)

As of December 31,

(Dollars in thousands)

2025

2024

2023

Accruing loans 30-89 days past due

Commercial and industrial

$

2,683 

$

1,260 

$

5,565 

Commercial real estate — owner occupied

34 

1,634 

358 

Commercial and business lending

2,717 

2,893 

5,923 

Commercial real estate — investor

19,405 

36,391 

18,697 

Real estate construction

117 

21 

— 

Commercial real estate lending

19,522 

36,412 

18,697 

Total commercial

22,239 

39,305 

24,619 

Residential mortgage

13,135 

14,892 

13,446 

Auto finance

16,445 

14,850 

17,386 

Home equity

3,779 

4,625 

4,208 

Other consumer(b)

2,704 

3,128 

2,166 

Total consumer

36,063 

37,496 

37,205 

Total accruing loans 30-89 days past due

$

58,302 

$

76,801 

$

61,825 

(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 management’s accounting policy for nonaccrual loans in Note 1 Summary of Significant Accounting Policies and Note 3 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.

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 3 Loans of the notes to consolidated financial statements for additional restructured loans disclosures.

OREO: Management actively seeks to ensure OREO properties held are monitored to minimize the Corporation's risk of loss.

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 3 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 December 31, 2025 was the Moody's baseline scenario from November 2025, which was reviewed against the December 2025 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 for additional information on the ACLL. See section Nonperforming Assets for a detailed discussion on asset quality. See also Note 3 Loans of the notes to consolidated financial statements for additional ACLL disclosures. Table 6 provides information

57

on loan growth and period end loan composition, Table 11 provides additional information regarding NPAs, and Table 12 and Table 13 provide additional information regarding activity in the ACLL.

The loan segmentation used in calculating the ACLL at December 31, 2025 and December 31, 2024 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.

58

Table 12 Allowance for Credit Losses on Loans

Years Ended December 31,

(Dollars in thousands)

2025

2024

2023

Allowance for loan losses

Balance at beginning of period

$

363,545 

$

351,094 

$

312,720 

Provision for loan losses

51,500 

81,000 

87,000 

Charge offs

(54,953)

(76,415)

(58,768)

Recoveries

17,976 

7,867 

10,142 

Net charge offs

(36,977)

(68,549)

(48,626)

Balance at end of period

$

378,068 

$

363,545 

$

351,094 

Allowance for unfunded commitments

Balance at beginning of period

$

38,776 

$

34,776 

$

38,776 

Provision for unfunded commitments

2,500 

4,000 

(4,000)

Balance at end of period

$

41,276 

$

38,776 

$

34,776 

Allowance for credit losses on loans

$

419,344 

$

402,322 

$

385,870 

Provision for credit losses on loans

54,000 

85,000 

83,000 

Net loan (charge offs) recoveries

Commercial and industrial

$

(6,258)

$

(45,369)

$

(42,672)

Commercial real estate — owner occupied

(113)

4 

(15)

Commercial and business lending

(6,371)

(45,365)

(42,687)

Commercial real estate — investor

(18,221)

(11,187)

2,763 

Real estate construction

154 

65 

55 

Commercial real estate lending

(18,067)

(11,122)

2,819 

Total commercial

(24,438)

(56,487)

(39,868)

Residential mortgage

(533)

(750)

(411)

Auto finance

(5,723)

(6,637)

(4,709)

Home equity

583 

1,150 

837 

Other consumer

(6,866)

(5,826)

(4,475)

Total consumer

(12,539)

(12,062)

(8,758)

Total net charge offs

$

(36,977)

$

(68,549)

$

(48,626)

Ratios

Allowance for credit losses on loans to total loans

1.35 

%

1.35 

%

1.32 

%

Allowance for credit losses on loans to net charge offs

11.3x

5.9x

7.9x

Loan evaluation method for ACLL

Individually evaluated for impairment

$

2,992 

$

5,689 

$

15,492 

Collectively evaluated for impairment

375,076 

396,632 

370,378 

Total ACLL

$

378,068 

$

402,322 

$

385,870 

Loan balance

Individually evaluated for impairment

$

21,651 

$

37,172 

$

62,712 

Collectively evaluated for impairment

31,141,963 

29,731,414 

29,153,505 

Total loan balance

$

31,163,614 

$

29,768,586 

$

29,216,218 

59

Table 13 Net (Charge Offs) Recoveries to Average Loans

Years Ended December 31,

(In basis points)

2025

2024

2023

Net loan (charge offs) recoveries

Commercial and industrial

(6)

(46)

(44)

Commercial real estate — owner occupied

(1)

— 

— 

Commercial and business lending

(5)

(41)

(39)

Commercial real estate — investor

(34)

(22)

5 

Real estate construction

1 

— 

— 

Commercial real estate lending

(25)

(15)

4 

Total commercial

(12)

(31)

(22)

Residential mortgage

(1)

(1)

— 

Auto finance

(19)

(26)

(26)

Home equity

9 

19 

14 

Other consumer

(221)

(219)

(161)

Total consumer

(11)

(11)

(8)

Total net charge offs

(12)

(23)

(16)

Notable Contributions to the Change in the Allowance for Credit Losses on Loans

•Total loans increased $1.4 billion, or 5%, from December 31, 2024, driven by increases in commercial and industrial lending and auto finance, partially offset by a decrease in residential mortgage lending, mainly due to the Corporation's balance sheet repositioning in December 2024. See also Note 3 Loans of the notes to consolidated financial statements for additional information on loans.

•Total nonaccrual loans decreased $22.8 million, or 19%, from December 31, 2024, primarily driven by decreases in nonaccrual loans within the Corporation's commercial and industrial portfolio and CRE-investor portfolio, partially offset by increases in nonaccrual loans within the auto finance portfolio and real estate construction portfolio. See also Note 3 Loans of the notes to consolidated financial statements and section Nonperforming Assets for additional disclosures on the changes in asset quality.

•For the year ended December 31, 2025, net charge offs decreased $31.6 million, or 46%, from December 31, 2024, primarily driven by a decrease in net charge offs in the Corporation's commercial and industrial portfolio, partially offset by an increase in net charge offs in the CRE-investor portfolio. See Tables 12 and 13 for additional information regarding the activity in the ACLL.

Management believes the level of ACLL to be appropriate at December 31, 2025.

Consolidated net income and stockholders’ equity could be affected if management’s estimate of the ACLL is subsequently materially different, requiring additional or less provision for credit losses to be recorded. Management carefully considers numerous detailed and general factors, its assumptions, and the likelihood of materially different conditions that could alter its assumptions. While management uses currently available information to recognize losses on loans, future adjustments to the ACLL may be necessary based on newly received appraisals, updated commercial customer financial statements, rapidly deteriorating customer cash flow, and changes in economic conditions that affect our customers. Additionally, larger credit relationships do not inherently create more risk, but can create wider fluctuations in net charge offs and asset quality measures. As an integral part of their examination processes, various federal and state regulatory agencies also review the ACLL. These agencies may require additions to the ACLL or may require that certain loan balances be charged off or downgraded into criticized loan categories when their credit evaluations differ from those of management, based on their judgments about information available to them at the time of their examinations.

60

Investment Securities Portfolio

Management of the investment securities portfolio involves the maximization of income while actively monitoring the portfolio's liquidity, market risk, quality of the investment securities, and its role in balance sheet and capital management. The Corporation classifies its investment securities as AFS, HTM, or equity securities on the consolidated balance sheets at the time of purchase. Securities classified as AFS may be sold from time to time in order to help manage interest rate risk, liquidity, credit quality, capital levels, or to take advantage of relative value opportunities in the marketplace. Investment securities classified as AFS and equity are carried at fair value on the consolidated balance sheets, while investment securities classified as HTM are carried at amortized cost on the consolidated balance sheets.

The Corporation's investment securities portfolio contains the following types of securities:

U.S. Treasury securities: U.S. Treasury Securities, including Treasury bills, notes, and bonds, are debt obligations issued by the U.S. Department of the Treasury and are backed by the full faith and credit of the U.S. government.

Municipal securities: The municipal securities relate to various state and political subdivisions and school districts. The municipal securities portfolio is regularly assessed for credit quality and deterioration.

Residential and commercial mortgage-related securities: Residential and commercial mortgage-related securities include predominantly FNMA, FHLMC and GNMA MBS and CMOs. The Corporation also has private-label residential mortgage-related securities are the most senior AAA-rated tranche CMO securities issued by a non-agency sponsor and collateralized by Prime Jumbo residential mortgage loans. The fair value of these mortgage-related securities is subject to inherent risks, such as prepayment risk and interest rate changes.

FFELP asset backed securities: FFELP asset backed securities are collateralized with government guaranteed student loans.

SBA asset backed securities: SBA asset backed securities are securities whose underlying assets are loans from the SBA. These loans are backed by the U.S. government.

Other debt securities: Other debt securities are primarily comprised of debt securities that mature within 3 years and have a rating of A.

61

Table 14 Investment Securities Portfolio

At December 31,

(Dollars in thousands)

2025

% of Total

2024

% of Total

2023

% of Total

AFS investment securities

Amortized cost

U.S. Treasury securities

$

— 

— 

%

$

— 

— 

%

$

39,984 

1 

%

Obligations of state and political subdivisions (municipal securities)

3,063 

— 

%

3,063 

— 

%

94,008 

3 

%

Residential mortgage-related securities:

FNMA/FHLMC

134,142 

3 

%

120,272 

3 

%

1,274,052 

34 

%

GNMA

5,000,015 

93 

%

4,236,199 

92 

%

2,021,242 

54 

%

Commercial mortgage-related securities:

FNMA/FHLMC

17,959 

— 

%

18,332 

— 

%

18,691 

— 

%

GNMA

113,374 

2 

%

116,275 

3 

%

161,928 

4 

%

Asset backed securities:

FFELP

95,977 

2 

%

108,319 

2 

%

135,832 

4 

%

SBA

283 

— 

%

495 

— 

%

1,077 

— 

%

Other debt securities

3,000 

— 

%

3,000 

— 

%

3,000 

— 

%

Total amortized cost

$

5,367,813 

100 

%

$

4,605,954 

100 

%

$

3,749,814 

100 

%

Fair value

U.S. Treasury securities

$

— 

— 

%

$

— 

— 

%

$

35,902 

1 

%

Obligations of state and political subdivisions (municipal securities)

3,044 

— 

%

3,005 

— 

%

91,817 

3 

%

Residential mortgage-related securities:

FNMA/FHLMC

129,863 

3 

%

110,928 

2 

%

1,120,794 

31 

%

GNMA

5,039,829 

93 

%

4,227,727 

92 

%

2,042,675 

57 

%

Commercial mortgage-related securities:

FNMA/FHLMC

16,958 

— 

%

17,000 

— 

%

16,937 

— 

%

GNMA

109,556 

2 

%

111,475 

2 

%

154,793 

4 

%

Asset backed securities:

FFELP

95,046 

2 

%

107,839 

2 

%

133,975 

4 

%

SBA

269 

— 

%

471 

— 

%

1,051 

— 

%

Other debt securities

2,998 

— 

%

2,989 

— 

%

2,950 

— 

%

Total fair value and carrying value

$

5,397,563 

100 

%

$

4,581,434 

100 

%

$

3,600,892 

100 

%

Net unrealized gains (losses)

$

29,750 

$

(24,520)

$

(148,922)

62

Table 14 Investment Securities Portfolio (continued)

At December 31,

(Dollars in thousands)

2025

% of Total

2024

% of Total

2023

% of Total

HTM investment securities

Amortized cost

U.S. Treasury securities

$

996 

— 

%

$

1,000 

— 

%

$

999 

— 

%

Obligations of state and political subdivisions (municipal securities)

1,628,088 

45 

%

1,659,722 

44 

%

1,682,473 

44 

%

Residential mortgage-related securities:

FNMA/FHLMC

823,630 

23 

%

885,476 

24 

%

941,973 

24 

%

GNMA

39,123 

1 

%

43,693 

1 

%

48,979 

1 

%

Private-label

302,817 

9 

%

324,182 

9 

%

345,083 

9 

%

Commercial mortgage-related securities:

FNMA/FHLMC

763,370 

21 

%

772,456 

21 

%

780,995 

20 

%

GNMA

44,552 

1 

%

52,219 

1 

%

59,733 

2 

%

Total amortized cost and carrying value

$

3,602,576 

100 

%

$

3,738,747 

100 

%

$

3,860,235 

100 

%

Fair value

U.S. Treasury securities

$

1,015 

— 

%

$

999 

— 

%

$

963 

— 

%

Obligations of state and political subdivisions (municipal securities)

1,507,302 

47 

%

1,486,642 

47 

%

1,554,059 

46 

%

Residential mortgage-related securities:

FNMA/FHLMC

696,462 

22 

%

721,946 

23 

%

804,393 

24 

%

GNMA

36,884 

1 

%

39,927 

1 

%

46,170 

1 

%

Private-label

258,827 

8 

%

266,353 

8 

%

289,507 

9 

%

Commercial mortgage-related securities:

FNMA/FHLMC

650,366 

21 

%

623,595 

20 

%

632,914 

19 

%

GNMA

40,138 

1 

%

46,032 

1 

%

52,619 

2 

%

Total fair value

$

3,190,994 

100 

%

$

3,185,494 

100 

%

$

3,380,624 

100 

%

Net unrealized losses

$

(411,582)

$

(553,253)

$

(479,610)

During the fourth quarter of 2024 as part of a balance sheet repositioning, the Corporation sold lower yielding AFS securities with a carrying value of $1.1 billion at a net loss of $148.2 million and reinvested the proceeds into higher yielding and lower risk-weighted GNMA securities.

During the fourth quarter of 2023 as part of a balance sheet repositioning, the Corporation sold lower yielding AFS securities with a carrying value of $715.1 million at a net loss of $64.9 million and reinvested the proceeds into higher yielding and lower risk-weighted GNMA securities.

At December 31, 2025, the Corporation’s investment securities portfolio did not contain securities of any single non-government or non-GSE issuer that were payable from and secured by the same source of revenue or taxing authority where the aggregate carrying value of such securities exceeded 5% of stockholders’ equity.

The Corporation did not recognize any credit-related write-downs to the allowance for credit losses on investments during 2025, 2024, or 2023. See Note 1 Summary of Significant Accounting Policies for management's accounting policy for investment securities and Note 2 Investment Securities of the notes to consolidated financial statements for additional investment securities disclosures.

63

Table 15 Investment Securities Portfolio Maturity Distribution(a)

December 31, 2025

(Dollars in thousands)

Amortized Cost

Fair Value

Weighted Average Yield(b)

AFS securities

Obligations of state and political subdivisions (municipal securities)

After one but within five years

$

2,430 

$

2,424 

4.41 

%

After ten years

633 

620 

4.46 

%

Total obligations of state and political subdivisions (municipal securities)

$

3,063 

$

3,044 

4.42 

%

Agency residential mortgage-related securities

Within one year

$

227,011 

$

228,194 

6.03 

%

After one but within five years

4,217,709 

4,251,763 

5.16 

%

After five years but within ten years

591,705 

591,618 

4.56 

%

After ten years

97,732 

98,117 

5.19 

%

Total agency residential mortgage-related securities

$

5,134,157 

$

5,169,692 

5.13 

%

Agency commercial mortgage-related securities

Within one year

$

803 

$

778 

2.31 

%

After one but within five years

84,383 

81,515 

3.69 

%

After five years but within ten years

46,147 

44,221 

3.92 

%

Total agency commercial mortgage-related securities

$

131,333 

$

126,514 

3.77 

%

Asset backed securities

Within one year

$

8 

$

8 

5.31 

%

After one but within five years

75,576 

75,007 

5.30 

%

After five years but within ten years

20,676 

20,300 

5.08 

%

Total asset backed securities

$

96,260 

$

95,315 

5.25 

%

Other debt securities

Within one year

$

1,000 

$

1,000 

4.40 

%

After one but within five years

2,000 

1,998 

4.88 

%

Total other debt securities

$

3,000 

$

2,998 

4.72 

%

Total AFS securities

$

5,367,813 

$

5,397,563 

5.10 

%

HTM securities

U.S. Treasury securities

After one but within five years

$

996 

$

1,015 

4.49 

%

Obligations of state and political subdivisions (municipal securities)

Within one year

$

4,214 

$

4,215 

4.40 

%

After one but within five years

98,081 

98,021 

4.08 

%

After five years but within ten years

218,537 

218,398 

4.03 

%

After ten years

1,307,256 

1,186,668 

3.69 

%

Total obligations of state and political subdivisions (municipal securities)

$

1,628,088 

$

1,507,302 

3.76 

%

Agency residential mortgage-related securities

After one but within five years

$

32,391 

$

30,864 

3.63 

%

After five years but within ten years

281,632 

233,526 

2.21 

%

After ten years

548,730 

468,956 

2.20 

%

Total agency residential mortgage-related securities

$

862,753 

$

733,346 

2.26 

%

Private-label residential mortgage-related securities

After one but within five years

$

52,479 

$

47,036 

2.54 

%

After five years but within ten years

250,338 

211,791 

2.31 

%

Total private-label residential mortgage-related securities

$

302,817 

$

258,827 

2.35 

%

Agency commercial mortgage-related securities

Within one year

$

3,042 

$

2,933 

2.35 

%

After one but within five years

345,903 

308,464 

1.56 

%

After five years but within ten years

313,249 

264,357 

2.32 

%

After ten years

145,728 

114,750 

2.13 

%

Total agency commercial mortgage-related securities

$

807,922 

$

690,504 

1.96 

%

Total HTM securities

$

3,602,576 

$

3,190,994 

2.88 

%

(a) Expected maturities will differ from contractual maturities, as borrowers may have the right to call or repay obligations with or without call or prepayment penalties.

(b) Yields on tax-exempt securities are computed on a fully tax-equivalent basis using a tax rate of 21%.

In addition to the investment securities portfolio noted above, the Corporation also holds the following investments:

Equity Securities with Readily Determinable Fair Values: Equity securities with readily determinable fair values is primarily comprised of mutual funds.

64

Equity Securities without Readily Determinable Fair Values: Equity securities without readily determinable fair values primarily consists of an investment in a private loan fund, and historically, Visa Class B restricted shares which the Corporation sold all remaining shares during the first quarter of 2024.

Regulatory Stock: The Corporation is required to hold and maintain, for regulatory purposes, Federal Reserve Bank stock and FHLB stock as member banks of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions.

See Note 2 Investment Securities of the notes to consolidated financial statements for additional information on the equity securities and regulatory stock.

Deposits and Customer Funding

The following table summarizes the composition of our deposits and customer funding:

Table 16 Period End Deposit and Customer Funding Composition(a)

As of December 31,

2025

2024

2023

(Dollars in thousands)

Amount

% of Total

Amount

% of Total

Amount

% of Total

Noninterest-bearing demand

$

6,126,632 

17 

%

$

5,775,657 

17 

%

$

6,119,956 

18 

%

Savings

5,471,870 

15 

%

5,133,295 

15 

%

4,835,701 

14 

%

Interest-bearing demand

7,823,362 

22 

%

7,994,475 

23 

%

7,561,353 

23 

%

Money market

6,139,438 

17 

%

6,009,793 

17 

%

6,046,928 

18 

%

Network transaction deposits

2,154,995 

6 

%

1,758,388 

5 

%

1,566,139 

5 

%

Brokered CDs

3,795,133 

11 

%

4,276,309 

12 

%

4,447,479 

13 

%

Other time deposits

4,041,178 

11 

%

3,700,518 

11 

%

2,868,494 

9 

%

Total deposits

$

35,552,608 

100 

%

$

34,648,434 

100 

%

$

33,446,049 

100 

%

Other customer funding(b)

47,794 

100,044 

106,620 

Total deposits and other customer funding

$

35,600,402 

$

34,748,478 

$

33,552,669 

Less: Total network transaction deposits and brokered CDs

5,950,128 

6,034,697 

6,013,618 

Core customer deposits(c) and other customer funding

$

29,650,274 

$

28,713,780 

$

27,539,051 

Time deposits of more than $250,000

$

834,309 

$

757,675 

$

522,626 

(a) Prior periods have been adjusted to conform with current period presentation.

(b) Includes repurchase agreements.

(c) Total deposits excluding brokered CDs and network transaction deposits. This is a non-GAAP financial measure. See Table 23 Non-GAAP Measures for a reconciliation to GAAP financial measures.

•Total deposits, which are the Corporation's largest source of funds, increased $904.2 million, or 3%, from December 31, 2024 driven by growth in all deposit types except interest-bearing demand and brokered CDs.

•Total uninsured deposits were $17.0 billion, $15.5 billion and $14.8 billion at December 31, 2025, 2024 and 2023 respectively. The increase was primarily driven by increase in balances in business deposit accounts. Estimated uninsured and uncollateralized deposits, excluding intercompany deposits, were $9.4 billion or 26.5% of total deposits at December 31, 2025, compared to $8.0 billion or 23.0% at December 31, 2024 and $7.6 billion or 22.7% at December 31, 2023.

Table 17 Maturity Distribution – Time Deposits of $250,000 or More

(Dollars in thousands)

December 31, 2025

Three months or less

$

351,362 

Over three months through six months

373,122 

Over six months through twelve months

107,581 

Over twelve months

2,244 

Total

$

834,309 

Selected period end deposit information is detailed in Note 7 Deposits of the notes to consolidated financial statements, including a maturity distribution of all time deposits at December 31, 2025. See Table 2 for additional information on average deposit balances and deposit rates.

65

Other Funding Sources

Short-Term Funding: Short-term funding is comprised of short-term FHLB advances (with original contractual maturities less than one year), federal funds purchased, securities sold under agreements to repurchase. Many short-term funding sources are secured with collateral, expected to be reissued, and, therefore, do not represent an immediate need for cash. The organization manages to a multitude of liquidity risk limits which consider availability of short-term funding sources across a spectrum of stress scenarios, among other risk-based assumptions. Short-term funding sources at December 31, 2025 were $3.2 billion, an increase of $1.4 billion, or 84%, from December 31, 2024, driven by a $1.6 billion, or 128%, increase in short-term FHLB advances.

Long-Term Funding: Long-term funding is comprised of long-term FHLB advances (with original contractual maturities greater than one year), senior notes, subordinated notes, and finance leases. Long-term funding at December 31, 2025 was $1.0 billion, a decrease of $434.3 million, or 30%, from December 31, 2024, driven by a $250.0 million, or 45%, decrease in subordinated notes, and a $197.4 million, or 32%, decrease in long-term FHLB advances.

See Note 8 Short and Long-Term Funding of the notes to consolidated financial statements for additional information on short-term and long-term funding. See Table 2 for additional information on average funding and rates.

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 December 31, 2025, 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 December 31, 2025, the Bank had $6.2 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 December 31, 2025, the Bank had $6.4 billion available for discount window borrowings.

•Acquisition related equity issuances by the Parent Company; the Corporation has filed a shelf registration statement with the SEC under which the Parent Company may, from time to time, offer shares of the Corporation’s common stock in connection with acquisitions of businesses, assets, or securities of other companies.

•Other 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.

66

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 18 Liquidity Sources and Uninsured Deposit Coverage Ratio

As of December 31,

(Dollars in thousands)

2025

2024

2023

Federal Reserve Bank balance

$

1,139,401 

$

451,298 

$

421,848 

Available FHLB Chicago capacity

6,221,495 

7,097,420 

5,985,385 

Available Federal Reserve Bank discount window capacity

6,443,766 

2,778,294 

1,433,655 

Available BTFP capacity

— 

— 

522,465 

     Funding available within one business day(a)

13,804,662 

10,327,012 

8,363,353 

Available federal funds lines

1,846,000 

1,164,000 

1,550,000 

Available brokered deposits capacity(b)

823,055 

418,198 

138,512 

Unsecured debt capacity(c)

1,000,000 

1,000,000 

1,000,000 

     Total available liquidity

$

17,473,717 

$

12,909,210 

$

11,051,865 

Uninsured and uncollateralized deposits

$

9,432,066 

$

7,954,259 

$

7,586,047 

Coverage ratio of uninsured and uncollateralized deposits with secured funding available within one business day

146 

%

130 

%

110 

%

Coverage ratio of uninsured and uncollateralized deposits with total funding

185 

%

162 

%

146 

%

(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 21 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.

For the year ended December 31, 2025, net cash provided by operating and financing activities was $615.7 million and $1.7 billion, respectively, while investing activities used net cash of $1.6 billion, for a net increase in cash and cash equivalents of $700.6 million since year-end 2024. During 2025, total assets increased to $45.2 billion, up $2.2 billion compared to year-end 2024, primarily due to increases in loans of $1.4 billion, AFS investment securities at fair value of $816.1 million, and interest-bearing deposits in other financial institutions of $690.5 million offset by a decrease in residential loans held for sale of $574.2 million. On the funding side, FHLB advances increased $1.4 billion, and deposits increased $904.2 million, mainly driven by increases in all deposit types except for brokered CDs which decreased $481.2 million.

For the year ended December 31, 2024, net cash provided by operating and financing activities was $580.2 million and $1.7 billion, respectively, while investing activities used net cash of $2.2 billion, for a net increase in cash and cash equivalents of $95.8 million since year-end 2023. During 2024, total assets increased to $43.0 billion, up $2.0 billion compared to year-end 2023, primarily due to increases in AFS investment securities, at fair value of $980.5 million, residential loans held for sale of $613.7 million resulting from a nonrecurring mortgage portfolio sale related to the balance sheet repositioning announced in the fourth quarter of 2024 which closed in January 2025, and loans of $552.4 million. On the funding side, deposits increased $1.2 billion, mainly driven by increases in other time deposits, money market, savings, and interest-bearing demand of $832.0 million, $307.5 million, $297.6 million, and $280.8 million, respectively, partially offset by a decrease in noninterest-bearing demand of $344.3 million. Additionally, other long-term funding increased $296.4 million, primarily driven by the Corporation's issuance of senior notes in August 2024.

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.

67

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.

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 December 31, 2025.

MVE and EAR are complementary interest rate risk metrics and should be viewed together. EAR sensitivity captures asset and liability re-pricing mismatches for the first year inclusive of forecast balance sheet changes and is considered a shorter-term measure, while MVE sensitivity captures mismatches within the period end balance sheets through the financial instruments’ respective maturities and is considered a longer term measure.

A positive EAR sensitivity in a rising rate environment indicates that over the forecast horizon of one year, asset-based income will increase more quickly than liability-based expense due to the balance sheet composition. A negative MVE sensitivity in a rising rate environment indicates that the value of financial assets will decrease more than the value of financial liabilities.

One of the primary methods that we use to quantify and manage interest rate risk is simulation analysis, which we use to model net interest income and rate-sensitive noninterest items from the Corporation’s balance sheet and derivative positions under various interest rate scenarios. As the future path of interest rates is not known with certainty, we use simulation analysis to project rate-sensitive income under many scenarios including implied forward and deliberately extreme and perhaps unlikely scenarios. The analyses may include rapid and gradual ramping of interest rates, rate shocks, basis risk analysis, and yield curve twists. Specific balance sheet management strategies are also analyzed to determine their impact on EAR.

Key assumptions in the simulation analysis (and in the valuation analysis discussed below) relate to the behavior of interest rates and pricing spreads, the changes in product balances, and the behavior of loan and deposit clients in different rate environments. This analysis incorporates several assumptions, the most material of which relate to the re-pricing characteristics and balance fluctuations of deposits with indeterminate or non-contractual maturities, and prepayment of loans and securities.

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 2025.

Table 19 Estimated % Change in Rate Sensitive EAR Over 12 Months

Dynamic Forecast

December 31, 2025

Static Forecast

December 31, 2025

Dynamic Forecast

December 31, 2024

Static Forecast

December 31, 2024

Gradual Rate Change

100 bp increase in interest rates

1.5%

2.0%

1.0%

0.7%

200 bp increase in interest rates

2.8%

3.9%

2.0%

1.3%

100 bp decrease in interest rates

(0.8)%

(1.4)%

(0.5)%

(0.2)%

200 bp decrease in interest rates

(2.2)%

(3.4)%

(1.3)%

(0.8)%

We also perform valuation analysis, which we use for discerning levels of risk present in the balance sheet and derivative positions that might not be taken into account in the EAR simulation analysis. Whereas, EAR simulation highlights exposures over a relatively short time horizon, valuation analysis incorporates all cash flows over the estimated remaining life of all balance sheet and derivative positions. The valuation of the balance sheet, at a point in time, is defined as the discounted present value of all asset cash flows and derivative cash flows, minus the discounted present value of all liability cash flows, the net of which is referred to as MVE. The sensitivity of MVE to changes in the level of interest rates is a measure of the longer-term re-

68

pricing risk and options risk embedded in the balance sheet. Unlike the EAR simulation, MVE uses instantaneous changes in rates. Additionally, MVE values only the current balance sheet and does not incorporate the growth assumptions that are used in the EAR simulation. As with EAR simulations, assumptions about the timing and variability of balance sheet cash flows are critical in the MVE analysis. Particularly important are the assumptions driving prepayments and the expected changes in balances and pricing of the indeterminate deposit portfolios. At December 31, 2025, 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 20 Market Value of Equity Sensitivity

December 31, 2025

December 31, 2024

Instantaneous Rate Change

100 bp increase in interest rates

(5.2)

%

(9.1)

%

200 bp increase in interest rates

(11.8)

%

(18.5)

%

100 bp decrease in interest rates

2.3 

%

7.1 

%

200 bp decrease in interest rates

1.4 

%

12.6 

%

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.

Contractual Obligations, Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities

The following table summarizes significant contractual obligations and other commitments at December 31, 2025, at those amounts contractually due to the recipient, including any unamortized premiums or discounts, hedge basis adjustments, or other similar carrying value adjustments.

Table 21 Contractual Obligations and Other Commitments

(Dollars in thousands)

Note

Reference

One Year

or Less

One to

Three Years

Three to

Five Years

Over

Five Years

Total

Time deposits

7

$

7,772,473 

$

52,886 

$

10,947 

$

5 

$

7,836,311 

Short-term funding

8

307,864 

— 

— 

— 

307,864 

FHLB advances

8

3,059,532 

203,610 

4,427 

525 

3,268,094 

Other long-term funding

8

— 

— 

298,369 

295,907 

594,276 

Operating leases

6

5,304 

9,707 

6,915 

17,203 

39,129 

Total

$

11,145,173 

$

266,203 

$

320,658 

$

313,640 

$

12,045,674 

The Corporation also has obligations under its retirement plans, derivatives, and lending-related commitments as described in Note 11 Retirement Plans, Note 13 Derivative and Hedging Activities, and Note 15 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings of the notes to consolidated financial statements, respectively. Further discussion of the nature of each obligation is included in the referenced note to the 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 December 31, 2025, 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

69

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.

Table 22 Capital Ratios

As of December 31,

(Dollars in thousands)

2025

2024

2023

Risk-based capital(a)

CET1

$

3,683,711 

$

3,396,836 

$

3,074,938 

Tier 1 capital

3,877,823 

3,590,948 

3,269,050 

Total capital

4,593,079 

4,282,597 

3,997,205 

Total risk-weighted assets

35,125,680 

33,950,173 

32,732,710 

Modified CECL transitional amount

— 

22,425 

44,851 

CET1 capital ratio

10.49 

%

10.01 

%

9.39 

%

Tier 1 capital ratio

11.04 

%

10.58 

%

9.99 

%

Total capital ratio

13.08 

%

12.61 

%

12.21 

%

Tier 1 leverage ratio

8.96 

%

8.73 

%

8.06 

%

Selected equity and performance ratios

Total stockholders’ equity / total assets

11.01 

%

10.70 

%

10.18 

%

Average stockholders' equity / average assets

10.94 

%

10.41 

%

10.11 

%

Tangible common equity / tangible assets (TCE Ratio)(b)

8.29 

%

7.82 

%

7.11 

%

(a) The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards, for the Corporation. These regulatory capital measurements are used by management, regulators, investors, and analysts to assess, monitor, and compare the quality and composition of the Corporation's capital with the capital of other financial services companies.

(b) This is a non-GAAP financial measure. See Table 23 Non-GAAP Measures for a reconciliation to GAAP financial measures.

See Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, for information on the shares repurchased during the fourth quarter of 2025.

See Note 9 Stockholders' Equity and Note 18 Regulatory Matters of the notes to consolidated financial statements for additional capital disclosures.

70

Table 23 Non-GAAP Measures

At or for the Year Ended December 31,

(Dollars in thousands)

2025

2024

2023

Tangible common equity reconciliation

Common equity

$

4,781,235 

$

4,411,450 

$

3,979,861 

Less: Goodwill and other intangible assets, net

1,127,842 

1,136,653 

1,145,464 

Tangible common equity for TCE Ratio

$

3,653,393 

$

3,274,797 

$

2,834,398 

Tangible assets reconciliation

Total assets

$

45,202,596 

$

43,023,068 

$

41,015,855 

Less: Goodwill and other intangible assets, net

1,127,842 

1,136,653 

1,145,464 

Tangible assets for TCE Ratio

$

44,074,754 

$

41,886,415 

$

39,870,392 

Average tangible common equity reconciliation

Average common equity

$

4,579,765 

$

4,108,251 

$

3,917,026 

Less: Average goodwill and other intangible assets, net

1,132,392 

1,141,198 

1,149,939 

Average tangible common equity for ROATCE

3,447,373 

2,967,052 

2,767,087 

Average tangible assets reconciliation

Average total assets

$

43,623,112 

$

41,333,853 

$

40,648,923 

Less: Average goodwill and other intangible assets, net

1,132,392 

1,141,198 

1,149,939 

Average tangible assets for return on average tangible assets

$

42,490,720 

$

40,192,655 

$

39,498,984 

Adjusted net income reconciliation

Net income

$

474,777 

$

123,145 

$

182,956 

Other intangible amortization, net of tax

6,608 

6,608 

6,608 

Adjusted net income for return on average tangible assets

$

481,385 

$

129,753 

$

189,564 

Adjusted net income available to common equity reconciliation

Net income available to common equity

$

463,277 

$

111,645 

$

171,456 

Other intangible amortization, net of tax

6,608 

6,608 

6,608 

Adjusted net income available to common equity for ROATCE

$

469,885 

$

118,253 

$

178,064 

Period end core customer deposits reconciliation

Total deposits

$

35,552,608 

$

34,648,434 

$

33,446,049 

Less: Network transaction deposits

2,154,995 

1,758,388 

1,566,139 

Less: Brokered CDs

3,795,133 

4,276,309 

4,447,479 

Core customer deposits

$

29,602,480 

$

28,613,737 

$

27,432,431 

Average core customer deposits reconciliation

Average total deposits

$

34,844,671 

$

33,391,095 

$

31,343,139 

Less: Average network transaction deposits

1,929,731 

1,645,695 

1,469,616 

Less: Average brokered CDs

4,078,557 

4,240,621 

2,687,316 

Average core customer deposits

$

28,836,383 

$

27,504,780 

$

27,186,207 

Total expense for efficiency ratios reconciliation(a)

Noninterest expense

$

855,639 

$

818,397 

$

813,682 

Less: Other intangible amortization

8,811 

8,811 

8,811 

Total expense for fully tax-equivalent efficiency ratio

846,828 

809,586 

804,871 

Less: FDIC special assessment

— 

7,696 

30,597 

Less: Announced initiatives(b)

— 

14,243 

— 

Less: Acquisition costs(c)

252 

— 

— 

Total expense for adjusted efficiency ratio

$

846,576 

$

787,647 

$

774,274 

Total revenue for efficiency ratios reconciliation(a)

Net interest income

$

1,201,145 

$

1,047,248 

$

1,039,573 

Noninterest income (loss)

286,400 

(9,407)

63,182 

Less: Investment securities gains (losses), net

49 

(144,147)

(58,903)

Fully tax-equivalent adjustment

16,899 

14,919 

19,168 

Total revenue for fully tax-equivalent efficiency ratio

1,504,395 

1,196,907 

1,180,826 

Less: Announced initiatives(b)

(6,976)

(130,406)

(136,239)

Total revenue for adjusted efficiency ratio

$

1,511,371 

$

1,327,313 

$

1,317,065 

(a) Prior periods have been adjusted to conform with current period presentation.

(b) Announced initiatives include the loss on mortgage portfolio sale and loss on prepayment of FHLB advances as a result of balance sheet repositionings that the Corporation announced in the fourth quarter of 2024. The net loss on the sale of investments is already excluded from noninterest income within the efficiency ratio.

(c) During the fourth quarter of 2025, the Corporation entered into a definitive agreement to acquire American National. These costs, incurred in connection with the proposed acquisition, represent nonrecurring costs.

71

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 Note 1 Summary of Significant Accounting Policies and Note 20 Segment Reporting of the notes to consolidated financial statements.

Table 24 Selected Segment Financial Data

Year Ended December 31,

% Change From

(Dollars in thousands)

2025

2024

2023

2024 to 2025

2023 to 2024

Corporate and Commercial Specialty

Total revenue

$

621,039 

$

600,396 

$

553,761 

3 

%

8 

%

Provision for credit losses

80,808 

66,390 

54,302 

22 

%

22 

%

Noninterest expense

185,890 

179,291 

167,589 

4 

%

7 

%

Income tax expense

68,165 

64,346 

59,143 

6 

%

9 

%

Net income

286,176 

290,369 

272,727 

(1)

%

6 

%

Average earning assets

17,533,814 

16,232,593 

15,856,298 

8 

%

2 

%

Average loans

17,517,683 

16,224,504 

15,844,450 

8 

%

2 

%

Average deposits

7,099,832 

6,936,891 

7,289,740 

2 

%

(5)

%

Community, Consumer, and Business

Total revenue

$

1,014,441 

$

1,025,863 

$

991,136 

(1)

%

4 

%

Provision for credit losses

25,790 

24,759 

29,757 

4 

%

(17)

%

Noninterest expense

551,434 

530,084 

517,323 

4 

%

2 

%

Income tax expense

91,816 

97,460 

91,770 

(6)

%

6 

%

Net income

345,401 

373,560 

352,286 

(8)

%

6 

%

Average earning assets

12,602,149 

12,945,288 

13,165,560 

(3)

%

(2)

%

Average loans

12,598,738 

12,943,509 

13,165,560 

(3)

%

(2)

%

Average deposits

21,501,775 

20,458,411 

19,928,414 

5 

%

3 

%

Risk Management and Shared Services

Total net revenue

$

(147,935)

$

(588,418)

$

(442,142)

(75)

%

33 

%

Provision for credit losses

(52,602)

(6,163)

(1,038)

N/M

N/M

Noninterest expense

118,315 

109,022 

128,770 

9 

%

(15)

%

Income tax benefit

(56,848)

(150,492)

(127,816)

(62)

%

18 

%

Net loss

(156,800)

(540,785)

(442,057)

(71)

%

22 

%

Average earning assets

10,067,085 

8,989,970 

8,608,852 

12 

%

4 

%

Average loans

473,650 

529,347 

524,283 

(11)

%

1 

%

Average deposits

6,243,064 

5,995,793 

4,124,985 

4 

%

45 

%

N/M = Not Meaningful

Segment Review 2025 Compared to 2024

Corporate and Commercial Specialty

•Average earning assets and average loans both increased $1.3 billion, from the year ended December 31, 2024, primarily as a result of growth within commercial and business lending.

•Provision for credit losses increased $14.4 million from the year ended December 31, 2024, due to increased commercial loan balances coupled with general macroeconomic trends.

Community, Consumer, and Business

•Average earning assets and average loan balances decreased $343.1 million and $344.8 million, respectively, from the year ended December 31, 2024, primarily driven by the sale of residential mortgages as part of the balance sheet repositioning announced in the fourth quarter of 2024 which closed in January 2025 offset by growth in all other consumer loan categories.

•Average deposit balances increased $1.0 billion from the year ended December 31, 2024, largely driven by increases in time, interest bearing and savings deposits.

72

Risk Management and Shared Services

•Total revenue increased $440.5 million from the year ended December 31, 2024, driven by the nonrecurring losses incurred in 2024 due to the investment portfolio and mortgage sale actions taken as part of the balance sheet repositioning announced in the fourth quarter of 2024 and organic interest income expansion due to the continued investment in higher yielding AFS securities throughout 2025.

•Income tax benefit decreased $93.6 million from the year ended December 31, 2024, due to the decrease in the net loss incurred in 2025 compared to 2024 and the strategic reallocation of the investment portfolio announced in the second quarter of 2024 creating additional benefit in 2024 which did not recur in 2025.

•Average earning assets increased $1.1 billion from the year ended December 31, 2024, primarily due to increased investment in AFS investment securities.

•Average loan balances decreased $55.7 million from the year ended December 31, 2024, attributable to lower balances in all loan categories.

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.

The consolidated financial statements of the Corporation are prepared in conformity with U.S. GAAP and follow general practices within the industries in which it operates. This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. Certain estimates inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes the following estimate is both important to the portrayal of the Corporation’s financial condition and results of operations and requires subjective or complex judgments and, therefore, management considers the following to be a critical accounting estimate. This critical accounting estimate is discussed directly with the Audit Committee of the Corporation’s Board of Directors.

Allowance for Credit Losses on Loans: Management’s evaluation process used to determine the appropriateness of the ACLL is subject to the use of estimates, assumptions, and judgments. The evaluation process combines many factors: management’s ongoing review and grading of the loan portfolio using a dual risk rating system leveraging probability of default and loss given default, consideration of historical loan loss and delinquency experience, trends in past due and nonaccrual loans, risk characteristics of the various classifications of loans, concentrations of loans to specific borrowers or industries, existing economic conditions and forecasts, the fair value of underlying collateral, and other qualitative and quantitative factors which could affect future credit losses. The Corporation uses Moody's baseline economic forecast within its model. Because current economic conditions and forecasts can change and future events are inherently difficult to predict, the anticipated amount of estimated credit losses on loans, and therefore the appropriateness of the ACLL, could change significantly. It is difficult to estimate how potential changes in any one economic factor or input might affect the overall allowance because a wide variety of factors and inputs are considered in estimating the allowance and changes in those factors and inputs considered may not occur at the same rate and may not be consistent across all product types. Additionally, changes in factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others. As an integral part of their examination process, various regulatory agencies also review the ACLL. Such agencies may require additions to the ACLL or may require that certain loan balances be charged off or downgraded into criticized loan categories when their credit evaluations differ from those of management, based on their judgments about information available to them at the time of their examination. A large driver to the ACLL is the overall credit quality of the underlying credits. Deterioration or improvement in credit quality could have a significant impact on the overall level of ACLL. At December 31, 2025, a 10% change in loans classified as special mention or worse would result in a +/- 4 bp change in the ACLL to total loans ratio. The Corporation believes the level of the ACLL is appropriate. See Note 1 Summary of Significant Accounting Policies and Note 3 Loans of the notes to consolidated financial statements as well as the Allowance for Credit Losses on Loans section.