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ASSOCIATED BANC-CORP - Quarter Report: 2023 March (Form 10-Q)

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to 
Commission file number: 001-31343

Associated Banc-Corp
(Exact name of registrant as specified in its charter)
Wisconsin39-1098068
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
433 Main Street
Green Bay,Wisconsin54301
(Address of principal executive offices)(Zip Code)
(920) 491-7500
(Registrant’s telephone number, including area code)
(not applicable)
(Former name, former address and former fiscal year, if changed since last report)

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareASBNew York Stock Exchange
Depositary Shrs, each representing 1/40th intrst in a shr of 5.875% Non-Cum. Perp Pref Stock, Srs EASB PrENew York Stock Exchange
Depositary Shrs, each representing 1/40th intrst in a shr of 5.625% Non-Cum. Perp Pref Stock, Srs FASB PrFNew York Stock Exchange
6.625% Fixed-Rate Reset Subordinated Notes due 2033ASBANew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes          No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes          No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer 
Non-accelerated filer  Smaller reporting company  
Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes          No  
APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares outstanding of registrant’s common stock, par value $0.01 per share, at April 24, 2023 was 150,890,583.
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ASSOCIATED BANC-CORP
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ASSOCIATED BANC-CORP
Commonly Used Acronyms, Abbreviations, and Defined Terms
The following listing provides a reference of common acronyms and abbreviations used throughout the document:
ABLAsset-Based Lending
ACLLAllowance for Credit Losses on Loans
AFSAvailable for Sale
ALCO Asset / Liability Committee
AOCIAccumulated Other Comprehensive Income
ARRCAlternative Reference Rate Committee
Associated / the Company / Corporation / our / weAssociated Banc-Corp collectively with all of its subsidiaries and affiliates
Associated Bank / the BankAssociated Bank, National Association
ASUAccounting Standards Update
Basel IIIInternational framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity
bpbasis point(s)
BTFPBank Term Funding Program
CARES ActCoronavirus Aid, Relief, and Economic Security Act
CDsCertificates of Deposit
CDIsCore Deposit Intangibles
CECLCurrent Expected Credit Losses
CET1Common Equity Tier 1
CRACommunity Reinvestment Act
CRECommercial Real Estate
DIFDeposit Insurance Fund
EAREarnings at Risk
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FDI ActFederal Deposit Insurance Act
FDICFederal Deposit Insurance Corporation
Federal ReserveBoard of Governors of the Federal Reserve System
FFELPFederal Family Education Loan Program
FHLBFederal Home Loan Bank
FHLMCFederal Home Loan Mortgage Corporation
FICOFair Isaac Corporation, provider of a broad-based risk score to aid in credit decisions
FNMAFederal National Mortgage Association
FTEsFull-time equivalent employees
FTPFunds Transfer Pricing
GAAPGenerally Accepted Accounting Principles
GNMAGovernment National Mortgage Association
GSEsGovernment-Sponsored Enterprises
HQLAHigh-Quality Liquid Assets
HTMHeld to Maturity
LIBORLondon Interbank Offered Rate
LOCOMLower of Cost or Market
LTVLoan-to-Value
Moody's
Moody’s Investors Service
MSRsMortgage Servicing Rights
MVEMarket Value of Equity
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Net Free FundsNoninterest-bearing sources of funds
NIINet Interest Income
NPAsNonperforming Assets
OCIOther Comprehensive Income
OREOOther Real Estate Owned
Parent CompanyAssociated Banc-Corp individually
RAPRetirement Account Plan - the Corporation's noncontributory defined benefit retirement plan
Repurchase AgreementsSecurities sold under agreements to repurchase
Restricted Stock AwardsRestricted common stock and restricted common stock units to certain key employees
Retirement Eligible ColleaguesColleagues whose retirement meets the early retirement or normal retirement definitions under the applicable equity compensation plan
ROCET1
Return on Common Equity Tier 1
S&PStandard & Poor's
SBASmall Business Administration
SBNYSignature Bank
SECU.S. Securities and Exchange Commission
Series E Preferred StockThe Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series E, liquidation preference $1,000 per share
Series F Preferred StockThe Corporation's 5.625% Non-Cumulative Perpetual Preferred Stock, Series F, liquidation preference $1,000 per share
SOFRSecured Overnight Finance Rate
SVBSilicon Valley Bank
TDRsTroubled Debt Restructurings
YTDYear-to-Date

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PART I - FINANCIAL INFORMATION
ITEM 1.Financial Statements:
ASSOCIATED BANC-CORP
Consolidated Balance Sheets
 Mar 31, 2023Dec 31, 2022
 (In thousands, except share and per share data)
(Unaudited)(Audited)
Assets
Cash and due from banks$311,269 $436,952 
Interest-bearing deposits in other financial institutions511,116 156,693 
Federal funds sold and securities purchased under agreements to resell455 27,810 
AFS investment securities, at fair value3,381,607 2,742,025 
HTM investment securities, net, at amortized cost3,967,058 3,960,398 
Equity securities30,514 25,216 
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost331,420 295,496 
Residential loans held for sale35,742 20,383 
Commercial loans held for sale33,490 — 
Loans29,207,072 28,799,569 
Allowance for loan losses(326,432)(312,720)
Loans, net28,880,640 28,486,849 
Tax credit and other investments269,269 276,773 
Premises and equipment, net375,540 376,906 
Bank and corporate owned life insurance677,328 676,530 
Goodwill1,104,992 1,104,992 
Other intangible assets, net47,079 49,282 
Mortgage servicing rights, net74,479 77,351 
Interest receivable152,404 144,449 
Other assets518,115 547,621 
Total assets$40,702,519 $39,405,727 
Liabilities and stockholders' equity
Noninterest-bearing demand deposits$7,328,689 $7,760,811 
Interest-bearing deposits23,003,134 21,875,343 
Total deposits30,331,824 29,636,154 
Federal funds purchased and securities sold under agreements to repurchase208,398 585,139 
Commercial paper18,210 20,798 
FHLB advances4,986,138 4,319,861 
Other long-term funding544,103 248,071 
Allowance for unfunded commitments39,776 38,776 
Accrued expenses and other liabilities448,407 541,438 
Total liabilities$36,576,856 $35,390,237 
Stockholders’ equity
Preferred equity$194,112 $194,112 
Common equity
Common stock$1,752 $1,752 
Surplus1,706,206 1,712,733 
Retained earnings2,973,354 2,904,882 
Accumulated other comprehensive (loss)(233,588)(272,799)
Treasury stock, at cost(516,173)(525,190)
Total common equity3,931,551 3,821,378 
Total stockholders’ equity4,125,663 4,015,490 
Total liabilities and stockholders’ equity$40,702,519 $39,405,727 
Preferred shares authorized (par value $1.00 per share)
750,000 750,000 
Preferred shares issued and outstanding200,000 200,000 
Common shares authorized (par value $0.01 per share)
250,000,000 250,000,000 
Common shares issued175,216,409 175,216,409 
Common shares outstanding150,885,862 150,444,019 
Numbers may not sum due to rounding.

See accompanying notes to consolidated financial statements.
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Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Income (Unaudited)
 Three Months Ended Mar 31,
 (In thousands, except per share data)
20232022
Interest income
Interest and fees on loans$391,320 $167,697 
Interest and dividends on investment securities
Taxable30,142 16,472 
Tax-exempt16,025 16,108 
Other interest5,329 1,993 
Total interest income442,817 202,270 
Interest expense
Interest on deposits109,422 3,571 
Interest on federal funds purchased and securities sold under agreements to repurchase3,143 38 
Interest on other short-term funding— 
Interest on FHLB advances49,960 8,182 
Interest on long-term funding6,281 2,730 
Total interest expense168,807 14,522 
Net interest income274,010 187,747 
Provision for credit losses17,971 (3,990)
Net interest income after provision for credit losses256,039 191,737 
Noninterest income
Wealth management fees20,189 22,404 
Service charges and deposit account fees12,994 16,856 
Card-based fees10,586 9,926 
Other fee-based revenue4,276 3,766 
Capital markets, net5,083 8,646 
Mortgage banking, net3,545 8,391 
Bank and corporate owned life insurance 2,664 2,071 
Asset gains, net263 188 
Investment securities gains (losses), net51 21 
Other2,422 2,198 
Total noninterest income62,073 74,467 
Noninterest expense
Personnel116,420 104,811 
Technology23,598 21,485 
Occupancy15,063 16,080 
Business development and advertising5,849 4,954 
Equipment4,930 4,960 
Legal and professional3,857 5,087 
Loan and foreclosure costs1,138 2,014 
FDIC assessment6,875 5,100 
Other intangible amortization2,203 2,203 
Other7,479 6,597 
Total noninterest expense187,412 173,292 
Income before income taxes130,700 92,912 
Income tax expense27,340 18,650 
Net income103,360 74,262 
Preferred stock dividends2,875 2,875 
Net income available to common equity$100,485 $71,387 
Earnings per common share
Basic$0.67 $0.48 
Diluted$0.66 $0.47 
Average common shares outstanding
Basic149,763 148,781 
Diluted151,128 150,492 

Numbers may not sum due to rounding.
See accompanying notes to consolidated financial statements.
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Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended Mar 31,
 ($ in thousands)
20232022
Net income$103,360 $74,262 
Other comprehensive income (loss), net of tax
AFS investment securities
Net unrealized gains (losses)36,478 (103,284)
Unrealized (losses) on AFS securities transferred to HTM securities— (67,604)
Amortization of net unrealized losses on AFS securities transferred to HTM securities2,267 1,108 
Reclassification adjustment for net (gains) realized in net income— (21)
Income tax benefit (expense)(9,892)43,098 
Other comprehensive income (loss) on AFS securities28,853 (126,702)
Cash flow hedge derivatives
Net unrealized gains13,763 — 
Reclassification adjustment for net losses realized in net income1,262 — 
Income tax (expense)(4,694)— 
Other comprehensive income on cash flow hedge derivatives10,331 — 
Defined benefit pension and postretirement obligations
Amortization of prior service cost(81)(81)
Amortization of actuarial loss30 74 
Income tax benefit79 
Other comprehensive income (loss) on pension and postretirement obligations27 (6)
Total other comprehensive income (loss)39,211 (126,708)
Comprehensive income (loss)$142,571 $(52,445)
Numbers may not sum due to rounding.
See accompanying notes to consolidated financial statements.

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Item 1. Financial Statements Continued:    
ASSOCIATED BANC-CORP
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)
(In thousands, except per share data)Preferred EquityCommon StockSurplusRetained
Earnings
Accumulated
Other
Comprehensive
 (Loss)
Treasury StockTotal
Balance, December 31, 2022$194,112 $1,752 $1,712,733 $2,904,882 $(272,799)$(525,190)$4,015,490 
Comprehensive income:
Net income— — — 103,360 — — 103,360 
Other comprehensive income— — — — 39,211 — 39,211 
Comprehensive income142,571 
Common stock issued:
Stock-based compensation plans, net— — (12,612)— — 14,379 1,766 
Purchase of treasury stock, stock-based compensation plans— — — — — (5,362)(5,362)
Cash dividends:
Common stock, $0.21 per share— — — (32,013)— — (32,013)
Preferred stock(a)
— — — (2,875)— — (2,875)
Stock-based compensation expense, net— — 6,086 — — — 6,086 
Balance, March 31, 2023$194,112 $1,752 $1,706,206 $2,973,354 $(233,588)$(516,173)$4,125,663 
Numbers may not sum due to rounding.
(a) Series E, $0.3671875 per share; and Series F, $0.3515625 per share.

(In thousands, except per share data)Preferred EquityCommon StockSurplusRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury StockTotal
Balance, December 31, 2021$193,195 $1,752 $1,713,851 $2,672,601 $(10,317)$(546,229)$4,024,853 
Change in accounting principle(a)
— — — 1,713 — — 1,713 
Total stockholders' equity at beginning of period, as adjusted193,195 1,752 1,713,851 2,674,314 (10,317)(546,229)4,026,566 
Comprehensive (loss):
Net income— — — 74,262 — — 74,262 
Other comprehensive (loss)— — — — (126,708)— (126,708)
Comprehensive (loss)(52,445)
Common stock issued:
Stock-based compensation plans, net— — (11,911)— — 18,565 6,654 
Purchase of treasury stock, stock-based compensation plans— — — — — (5,193)(5,193)
Cash dividends:
Common stock, $0.20 per share— — — (30,583)— — (30,583)
Preferred stock(b)
— — — (2,875)— — (2,875)
Stock-based compensation expense, net— — 6,164 — — — 6,164 
Balance, March 31, 2022$193,195 $1,752 $1,708,104 $2,715,118 $(137,024)$(532,858)$3,948,287 
Numbers may not sum due to rounding.
(a) MSRs at December 31, 2021 were carried at LOCOM. On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value.
(b) Series E, $0.3671875 per share; and Series F, $0.3515625 per share.


See accompanying notes to consolidated financial statements.




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Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended Mar 31,
 ($ in thousands)
20232022
Cash flows from operating activities
Net income$103,360 $74,262 
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses17,971 (3,990)
Depreciation and amortization11,425 11,680 
Change in MSRs valuation1,857 (9,451)
Amortization of other intangible assets2,203 2,203 
Amortization and accretion on earning assets, funding, and other, net338 5,338 
Net amortization of tax credit investments8,574 8,535 
(Gains) on sales of investment securities, net— (21)
Asset (gains), net(263)(188)
Loss on mortgage banking activities, net251 4,183 
Mortgage loans originated and acquired for sale(69,254)(252,113)
Proceeds from sales of mortgage loans held for sale54,652 296,089 
Changes in certain assets and liabilities:
(Increase) in interest receivable(7,955)(2,592)
(Decrease) increase in interest payable14,775 (1,917)
(Decrease) in expense payable(52,396)(46,737)
(Decrease) increase in net derivative position(42,403)152,545 
Net change in other assets and other liabilities4,336 8,292 
Net cash provided by operating activities47,470 246,119 
Cash flows from investing activities
Net (increase) in loans(414,268)(305,878)
Purchases of:
AFS securities(681,386)(409,076)
HTM securities(41,524)(135,301)
Federal Home Loan Bank and Federal Reserve Bank stocks and equity securities(56,892)(301)
Proceeds from:
Sales of AFS securities— 734 
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks and equity securities15,765 
Prepayments, calls, and maturities of AFS securities 79,746 167,986 
Prepayments, calls, and maturities of HTM securities 33,053 51,206 
Sales, prepayments, calls, and maturities of other assets10,115 18,012 
Premises, equipment, and software, net of disposals(13,898)(17,141)
Net change in tax credit and alternative investments(7,033)(10,293)
Net cash (used in) investing activities(1,076,322)(640,045)
Cash flows from financing activities
Net increase (decrease) in deposits695,723 (60,949)
Net increase (decrease) in short-term funding(379,329)45,098 
Net increase in short-term FHLB advances660,000 320,000 
Repayment of long-term FHLB advances(507)(414,578)
Proceeds from long-term FHLB advances115 11,506 
Proceeds from issuance of long-term funding292,740 — 
(Repayment) proceeds of finance lease principal(21)399 
Proceeds from issuance of common stock for stock-based compensation plans1,766 6,654 
Purchase of treasury stock, stock-based compensation plans(5,362)(5,193)
Cash dividends on common stock(32,013)(30,583)
Cash dividends on preferred stock(2,875)(2,875)
Net cash provided by (used in) financing activities1,230,238 (130,521)
Net increase (decrease) in cash and cash equivalents201,385 (524,447)
Cash and cash equivalents at beginning of period621,455 1,025,515 
Cash and cash equivalents at end of period(a)
$822,840 $501,068 
Numbers may not sum due to rounding.
(a) No restricted cash due to the Federal Reserve reducing the required reserve ratio to zero.
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ASSOCIATED BANC-CORP
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended Mar 31,
 ($ in thousands)
20232022
Supplemental disclosures of cash flow information
Cash paid for interest$153,760 $16,267 
Cash paid for (received from) income and franchise taxes1,086 (1,471)
Loans and bank premises transferred to OREO3,599 426 
Capitalized mortgage servicing rights474 3,042 
Loans transferred into held for sale from portfolio, net94 2,644 
Transfer of AFS securities to HTM securities— 1,621,990 
Unsettled trades to purchase securities— 4,246 
Fair value adjustments on hedged long-term FHLB advances and subordinated debt(10,724)— 
Fair value adjustment on cash flow hedge10,331 — 

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Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Notes to Consolidated Financial Statements
These interim consolidated financial statements have been prepared according to the rules and regulations of the SEC and, therefore, certain information and footnote disclosures normally presented in accordance with GAAP have been omitted or abbreviated. The information contained on the consolidated financial statements and footnotes in Associated Banc-Corp's 2022 Annual Report on Form 10-K should be referred to in connection with the reading of these unaudited interim consolidated financial statements.
Note 1 Basis of Presentation
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and comprehensive income, changes in stockholders’ equity, and cash flows of the Corporation and Parent Company for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are particularly susceptible to significant change include the determination of the ACLL. Management has evaluated subsequent events for potential recognition or disclosure.
Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes.
Note 2 Summary of Significant Accounting Policies
The accounting and reporting policies of the Corporation conform to U.S. GAAP and to general practice within the financial services industry. A discussion of these policies can be found in Note 1 Summary of Significant Accounting Policies included in the Corporation’s 2022 Annual Report on Form 10-K.
New Accounting Pronouncements Adopted
StandardDescriptionDate of adoptionEffect on financial statements
ASU 2022-02 Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage DisclosuresThe FASB issued these amendments to eliminate accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty, and to require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively, except as provided in the next sentence. For the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted if an entity has adopted the amendments in Update 2016-03, including adoption in an interim period.1st Quarter 2023Adoption of this amendment did not have a material impact on the Corporation's results of operation, financial position or liquidity, but resulted in additional disclosure requirements related to gross charge offs by vintage year and the removal of TDR disclosures, replaced by additional disclosures on the types of modifications of loans to borrowers experiencing financial difficulties. The Corporation has adopted this update prospectively.
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Future Accounting Pronouncements
The expected impact of applicable material accounting pronouncements recently issued or proposed but not yet required to be adopted are discussed in the table below. To the extent that the adoption of new accounting standards materially affects the Corporation's financial condition, results of operations, liquidity or disclosures, the impacts are discussed in the applicable sections of this financial review.
StandardDescriptionDate of anticipated adoptionEffect on financial statements
ASU 2023-02 Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization MethodThe amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and must be applied on either a modified retrospective or a retrospective basis. Early adoption is permitted in any interim period, however if adopted in an interim period the entity shall adopt the amendments in this update as of the beginning of the fiscal year that includes the interim period. 1st Quarter 2024The Corporation is currently evaluating the impact on its results of operation, financial position, liquidity, and disclosures.
Note 3 Earnings Per Common Share
Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock awards). Presented below are the calculations for basic and diluted earnings per common share:
 Three Months Ended Mar 31,
 ($ in thousands, except per share data)20232022
Net income$103,360 $74,262 
Preferred stock dividends(2,875)(2,875)
Net income available to common equity$100,485 $71,387 
Common shareholder dividends(31,808)(30,372)
Unvested share-based payment awards(205)(211)
Undistributed earnings$68,472 $40,804 
Undistributed earnings allocated to common shareholders$68,086 $40,548 
Undistributed earnings allocated to unvested share-based payment awards386 256 
Undistributed earnings$68,472 $40,804 
Basic
Distributed earnings to common shareholders$31,808 $30,372 
Undistributed earnings allocated to common shareholders68,086 40,548 
Total common shareholders earnings, basic$99,894 $70,920 
Diluted
Distributed earnings to common shareholders$31,808 $30,372 
Undistributed earnings allocated to common shareholders68,086 40,548 
Total common shareholders earnings, diluted$99,894 $70,920 
Weighted average common shares outstanding149,763 148,781 
Effect of dilutive common stock awards1,365 1,711 
Diluted weighted average common shares outstanding151,128 150,492 
Basic earnings per common share$0.67 $0.48 
Diluted earnings per common share$0.66 $0.47 
Approximately 2 million anti-dilutive common stock options were excluded from the earnings per common share calculation for both the three months ended March 31, 2023 and 2022.
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Note 4 Stock-Based Compensation
The fair values of stock options and restricted stock awards are amortized as compensation expense on a straight-line basis over the vesting period of the grants. For colleagues who meet the definition of retirement eligible under the 2017 Incentive Compensation Plan and the 2020 Incentive Compensation Plan, expenses related to stock options and restricted stock awards are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense on the consolidated statements of income.
A summary of the Corporation’s stock option activity for the three months ended March 31, 2023 is presented below:
Stock Options
Shares(a)
Weighted Average
Exercise Price
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value(a)
Outstanding at December 31, 20223,994 $21.06 5.11 years$10,525 
Exercised34 17.07 
Forfeited or expired— — 
Outstanding at March 31, 20233,960 $21.10 4.87 years$1,039 
Options Exercisable at March 31, 20233,746 $21.27 4.75 years$887 
(a) In thousands
Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. For the three months ended March 31, 2023, the intrinsic value of stock options exercised was approximately $219,000, compared to $3 million for the three months ended March 31, 2022. For the three months ended March 31, 2023, the total fair value of stock options vested was approximately $955,000 compared to $2 million for the three months ended March 31, 2022.
The Corporation recognized compensation expense for the vesting of stock options of approximately $108,000 for the three months ended March 31, 2023, compared to $241,000 for the three months ended March 31, 2022. At March 31, 2023, the Corporation had approximately $270,000 of unrecognized compensation expense related to stock options that is expected to be recognized over the remaining requisite service periods that extend predominately through the first quarter of 2024.
The Corporation also has issued time-based and performance-based restricted stock awards under the 2017 Incentive Compensation Plan and subsequent 2020 Incentive Compensation Plan. Performance awards are based on performance goals determined by the Compensation and Benefits Committee of the Corporation's Board of Directors, with vesting ranging from a minimum of 0% to a maximum of 150% of the target award. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date.
The following table summarizes information about the Corporation’s restricted stock awards activity for the three months ended March 31, 2023:
Restricted Stock
Shares(a)
Weighted Average
Grant Date Fair Value
Outstanding at December 31, 20222,303 $20.81 
Granted813 22.67 
Vested630 20.99 
Forfeited21.92 
Outstanding at March 31, 20232,484 $21.38 
(a) In thousands
The Corporation amortizes the expense related to restricted stock awards as compensation expense over the vesting period specified in the grant's award agreement. Performance-based restricted stock awards granted during 2022 and 2023 will cliff-vest after the three year performance period has ended. Service-based restricted stock awards granted during 2022 and 2023 will vest ratably over a period of four years. Expense for restricted stock awards of $6 million was recorded for both the three months ended March 31, 2023 and the three months ended March 31, 2022. Included in compensation expense for the first three months of 2023 was $3 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $31 million of unrecognized compensation costs related to restricted stock awards at March 31, 2023 that are expected to be recognized over the remaining requisite service periods that extend predominately through the first quarter of 2027.
The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock awards. The Board of Directors has authorized management to repurchase shares of the Corporation’s common stock in the market, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares, if any, will be based on market and investment opportunities, capital levels,
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growth prospects, and regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities.

Note 5 Investment Securities
Investment securities are designated as AFS, HTM, or equity on the consolidated balance sheets at the time of purchase. The amortized cost and fair values of AFS and HTM securities at March 31, 2023 were as follows:
($ in thousands)Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Fair Value
AFS investment securities
U. S. Treasury securities$124,478 $— $(12,735)$111,743 
Agency securities15,000 — (1,271)13,730 
Obligations of state and political subdivisions (municipal securities)230,673 291 (2,063)228,902 
Residential mortgage-related securities:
FNMA/FHLMC1,768,846 260 (194,529)1,574,578 
GNMA1,092,742 7,273 (4,427)1,095,588 
Commercial mortgage-related securities:
FNMA/FHLMC18,952 — (1,335)17,618 
GNMA194,550 17 (5,101)189,466 
Asset backed securities:
FFELP147,876 — (4,791)143,084 
SBA4,020 13 (50)3,983 
Other debt securities3,000 — (82)2,918 
Total AFS investment securities$3,600,137 $7,854 $(226,383)$3,381,607 
HTM investment securities
U. S. Treasury securities$999 $— $(51)$947 
Obligations of state and political subdivisions (municipal securities)1,720,177 4,888 (146,544)1,578,521 
Residential mortgage-related securities:
FNMA/FHLMC981,065 30,284 (163,514)847,835 
GNMA53,298 195 (2,897)50,596 
Private-label361,170 11,242 (71,147)301,265 
Commercial mortgage-related securities:
FNMA/FHLMC785,516 14,657 (156,369)643,803 
GNMA64,859 502 (6,826)58,536 
Total HTM investment securities$3,967,083 $61,768 $(547,349)$3,481,502 


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The amortized cost and fair values of AFS and HTM securities at December 31, 2022 were as follows:
($ in thousands)Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Fair Value
AFS investment securities
U. S. Treasury securities$124,441 $— $(15,063)$109,378 
Agency securities15,000 — (1,468)13,532 
Obligations of state and political subdivisions (municipal securities)235,693 96 (5,074)230,714 
Residential mortgage-related securities:
FNMA/FHLMC1,820,642 404 (216,436)1,604,610 
GNMA502,537 314 (5,255)497,596 
Commercial mortgage-related securities:
FNMA/FHLMC19,038 — (1,896)17,142 
GNMA115,031 — (4,569)110,462 
Asset backed securities:
FFELP157,138 — (5,947)151,191 
SBA4,512 15 (51)4,477 
Other debt securities3,000 — (78)2,922 
Total AFS investment securities$2,997,032 $830 $(255,837)$2,742,025 
HTM investment securities
U. S. Treasury securities$999 $— $(62)$936 
Obligations of state and political subdivisions (municipal securities)1,732,351 1,994 (182,697)1,551,647 
Residential mortgage-related securities:
FNMA/FHLMC961,231 31,301 (175,760)816,771 
GNMA52,979 85 (3,436)49,628 
Private-label364,728 11,697 (72,920)303,505 
Commercial mortgage-related securities:
FNMA/FHLMC778,796 15,324 (178,281)615,839 
GNMA69,369 577 (7,254)62,691 
 Total HTM investment securities$3,960,451 $60,978 $(620,411)$3,401,018 
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of AFS and HTM securities at March 31, 2023, are shown below:
 AFSHTM
($ in thousands)Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Due in one year or less$6,773 $6,768 $14,358 $14,350 
Due after one year through five years179,763 165,292 36,046 35,926 
Due after five years through ten years150,181 149,003 161,217 159,591 
Due after ten years36,434 36,229 1,509,554 1,369,602 
Total debt securities373,151 357,292 1,721,175 1,579,468 
Residential mortgage-related securities:
FNMA/FHLMC1,768,846 1,574,578 981,065 847,835 
GNMA1,092,742 1,095,588 53,298 50,596 
Private-label— — 361,170 301,265 
Commercial mortgage-related securities:
FNMA/FHLMC18,952 17,618 785,516 643,803 
GNMA194,550 189,466 64,859 58,536 
Asset backed securities:
FFELP 147,876 143,084 — — 
SBA4,020 3,983 — — 
Total investment securities$3,600,137 $3,381,607 $3,967,083 $3,481,502 
Ratio of fair value to amortized cost93.9 %87.8 %
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On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The following table summarizes the credit quality indicators of HTM securities at amortized cost at March 31, 2023:
($ in thousands)AAAAAANot RatedTotal
U. S. Treasury securities$999 $— $— $— $999 
Obligations of state and political subdivisions (municipal securities)807,729 903,689 7,602 1,157 1,720,177 
Residential mortgage-related securities:
FNMA/FHLMC981,065 — — — 981,065 
GNMA53,298 — — — 53,298 
Private-label361,170 — — — 361,170 
Commercial mortgage-related securities:
FNMA/FHLMC785,516 — — — 785,516 
GNMA 64,859 — — — 64,859 
Total HTM securities$3,054,635 $903,689 $7,602 $1,157 $3,967,083 
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2022:
($ in thousands)AAAAAANot RatedTotal
U. S. Treasury securities$999 $— $— $— $999 
Obligations of state and political subdivisions (municipal securities)806,529 917,059 7,604 1,158 1,732,351 
Residential mortgage-related securities:
FNMA/FHLMC961,231 — — — 961,231 
GNMA52,979 — — — 52,979 
Private-label364,728 — — — 364,728 
Commercial mortgage-related securities:
FNMA/FHLMC778,796 — — — 778,796 
GNMA 69,369 — — — 69,369 
Total HTM securities$3,034,630 $917,059 $7,604 $1,158 $3,960,451 
The following table summarizes gross realized gains and losses on AFS securities, net write-up of equity securities, and proceeds from the sale of investment securities for the three months ended March 31, 2023 and 2022:
Three Months Ended Mar 31,
($ in thousands)20232022
Gross gains on AFS securities$— $21 
Net write-up of equity securities51 — 
Investment securities gains (losses), net$51 $21 
Proceeds from sales of AFS investment securities$— $734 
Investment securities with a carrying value of $2.2 billion and $2.3 billion at March 31, 2023 and December 31, 2022, respectively, were pledged as required to secure certain deposits or for other purposes.
Accrued interest receivable on HTM securities totaled $16 million and $19 million at March 31, 2023 and December 31, 2022, respectively. Accrued interest receivable on AFS securities totaled $12 million and $9 million at March 31, 2023 and December 31, 2022, respectively. Accrued interest receivable on both HTM and AFS securities is included in interest receivable on the consolidated balance sheets. There was no interest income reversed for investments going into nonaccrual at both March 31, 2023 and December 31, 2022.
A security is considered past due once it is 30 days past due under the terms of the agreement. At both March 31, 2023 and December 31, 2022, the Corporation had no past due HTM securities.

The allowance for credit losses on HTM securities was approximately $25,000 at March 31, 2023 and approximately $54,000 at December 31, 2022, attributable entirely to the Corporation's municipal securities, included in HTM investment securities, net, at amortized cost on the consolidated balance sheets. The Corporation also holds U.S. Treasury, municipal, and mortgage-related securities issued by the U.S. government or a GSE which are backed by the full faith and credit of the U.S. government and private-label residential mortgage-related securities that have credit enhancement which covers the first 15% of losses and, as a result, no allowance for credit losses has been recorded related to these securities.

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The following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2023:
 Less than 12 months12 months or moreTotal
($ in thousands)Number
of
Securities
Unrealized
(Losses)
Fair
Value
Number
of
Securities
Unrealized
(Losses)
Fair
Value
Unrealized
(Losses)
Fair
Value
AFS investment securities
U.S. Treasury securities— $— $— $(12,735)$111,743 $(12,735)$111,743 
Agency securities— — — (1,271)13,730 (1,271)13,730 
Obligations of state and political subdivisions (municipal securities)189 (1,025)111,529 72 (1,037)40,199 (2,063)151,727 
Residential mortgage-related securities:
FNMA/FHLMC12 (3,619)51,021 96 (190,909)1,504,384 (194,529)1,555,405 
GNMA23 (2,583)294,212 (1,844)33,128 (4,427)327,340 
Commercial mortgage-related securities:
FNMA/FHLMC— — — (1,335)17,618 (1,335)17,618 
GNMA13 (1,039)100,585 29 (4,062)74,665 (5,101)175,250 
Asset backed securities:
FFELP— — — 15 (4,791)143,084 (4,791)143,084 
SBA(1)331 (49)1,755 (50)2,087 
Other debt securities(31)969 (51)1,949 (82)2,918 
Total240 $(8,299)$558,647 238 $(218,084)$1,942,255 $(226,383)$2,500,901 
HTM investment securities
U.S. Treasury securities— $— $— $(51)$947 $(51)$947 
Obligations of state and political subdivisions (municipal securities)311 (7,598)454,461 400 (138,946)614,842 (146,544)1,069,304 
Residential mortgage-related securities:
FNMA/FHLMC63 (2,881)75,386 50 (160,633)762,280 (163,514)837,666 
GNMA16 (168)6,511 63 (2,729)32,771 (2,897)39,282 
Private-label— — — 18 (71,147)301,265 (71,147)301,265 
 Commercial mortgage-related securities:
FNMA/FHLMC(473)29,658 41 (155,897)614,153 (156,369)643,811 
GNMA— — — 14 (6,826)58,536 (6,826)58,536 
Total394 $(11,120)$566,017 587 $(536,229)$2,384,794 $(547,349)$2,950,811 
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For comparative purposes, the following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022:
 Less than 12 months12 months or moreTotal
($ in thousands)Number
of
Securities
Unrealized
(Losses)
Fair
Value
Number
of
Securities
Unrealized
(Losses)
Fair
Value
Unrealized
(Losses)
Fair
Value
AFS investment securities
U.S. Treasury securities— $— $— $(15,063)$109,378 $(15,063)$109,378 
Agency securities— — — (1,468)13,532 (1,468)13,532 
Obligations of state and political subdivisions (municipal securities)358 (5,066)201,260 (8)1,916 (5,074)203,176 
Residential mortgage-related securities:
FNMA/FHLMC24 (31,266)260,986 84 (185,170)1,321,420 (216,436)1,582,406 
GNMA23 (4,415)220,276 (840)11,096 (5,255)231,372 
Commercial mortgage-related securities:
FNMA/FHLMC(1,896)17,142 — — — (1,896)17,142 
GNMA33 (3,920)101,036 (649)9,426 (4,569)110,462 
Asset backed securities:
FFELP(1,668)44,304 12 (4,278)106,887 (5,947)151,191 
SBA(1)417 (50)2,057 (51)2,474 
Other debt securities(30)1,970 (49)951 (78)2,922 
Total446 $(48,263)$847,391 121 $(207,575)$1,576,665 $(255,837)$2,424,055 
HTM investment securities
U.S. Treasury securities$(62)$936 — $— $— $(62)$936 
Obligations of state and political subdivisions (municipal securities)771 (96,282)1,079,216 156 (86,415)231,022 (182,697)1,310,238 
Residential mortgage-related securities:
FNMA/FHLMC79 (18,925)143,201 22 (156,836)671,570 (175,760)814,770 
GNMA81 (3,436)44,476 — — — (3,436)44,476 
Private-label(9,509)58,733 15 (63,411)244,772 (72,920)303,505 
Commercial mortgage-related securities:
FNMA/FHLMC(3,814)20,338 39 (174,467)576,911 (178,281)597,249 
GNMA(2,528)34,612 (4,726)28,080 (7,254)62,691 
Total947 $(134,556)$1,381,511 238 $(485,855)$1,752,354 $(620,411)$3,133,865 
The Corporation reviews the AFS investment securities portfolio on a quarterly basis to monitor its credit exposure. A determination as to whether a security’s decline in fair value is the result of credit risk takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Corporation may consider in this impairment analysis include the extent to which the security has been in an unrealized loss position, the change in security rating, financial condition and near-term prospects of the issuer, as well as the security and industry specific economic conditions.
Based on the Corporation’s evaluation, management does not believe any unrealized losses at March 31, 2023 represent credit deterioration as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions. The Corporation does not intend to sell, nor does it believe that it will be required to sell, the securities in an unrealized loss position before recovery of their amortized cost basis.
FHLB and Federal Reserve Bank stocks: The Corporation is required to maintain Federal Reserve Bank stock and FHLB stock as a member bank of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. The Corporation had FHLB stock of $245 million and $209 million at March 31, 2023 and December 31, 2022, respectively. The Corporation had Federal Reserve Bank stock of $87 million at both March 31, 2023 and December 31, 2022. Accrued interest receivable on FHLB stock totaled $4 million and $3 million at March 31, 2023 and December 31, 2022, respectively. There was approximately $776,000 of accrued interest receivable on Federal Reserve Bank Stock at March 31, 2023, and none at December 31, 2022. Accrued interest receivable on both FHLB stock and Federal Reserve Bank stock is included in interest receivable on the consolidated balance sheets.
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Equity Securities
Equity securities with readily determinable fair values: The Corporation's portfolio of equity securities with readily determinable fair values is primarily comprised of CRA Qualified Investment mutual funds and other mutual funds. At both March 31, 2023 and December 31, 2022, the Corporation had equity securities with readily determinable fair values of $6 million.
Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values, which primarily consists of Visa Class B restricted shares and an investment in a private SBA loan fund, was carried at $24 million and $19 million at March 31, 2023 and December 31, 2022, respectively.
Note 6 Loans
The period end loan composition was as follows:
($ in thousands)Mar 31, 2023Dec 31, 2022
Asset-based lending & equipment finance$522,834 $458,887 
Commercial and industrial9,346,947 9,300,567 
Commercial real estate — owner occupied1,050,236 991,722 
Commercial and business lending10,920,017 10,751,176 
Commercial real estate — investor5,094,249 5,080,344 
Real estate construction2,147,070 2,155,222 
Commercial real estate lending7,241,318 7,235,565 
Total commercial18,161,335 17,986,742 
Residential mortgage8,605,164 8,511,550 
Auto finance1,551,538 1,382,073 
Home equity609,787 624,353 
Other consumer279,248 294,851 
Total consumer11,045,737 10,812,828 
Total loans$29,207,072 $28,799,569 
Accrued interest receivable on loans totaled $119 million at March 31, 2023, and $113 million at December 31, 2022, and is included in interest receivable on the consolidated balance sheets. Interest accrued but not received for loans placed on nonaccrual is reversed against interest income. The amount of accrued interest reversed was immaterial at both the three months ended March 31, 2023 and 2022.

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The following table presents loans by credit quality indicator by origination year at March 31, 2023:
Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost BasisYTD 20232022202120202019PriorTotal
Asset-based lending & equipment finance:
Risk rating:
Pass$— $60,256 $55,535 $262,074 $125,609 $1,420 $543 $— $505,437 
Potential Problem— — — 1,396 — 16,000 — — 17,396 
Asset-based lending & equipment finance$— $60,256 $55,535 $263,471 $125,609 $17,420 $543 $— $522,834 
Commercial and industrial:
Risk rating:
Pass$71 $2,003,455 $332,572 $2,872,816 $2,101,488 $467,455 $558,852 $685,216 $9,021,853 
Special Mention— 86,593 — 30,540 31,161 2,913 — 33,501 184,709 
Potential Problem128 39,951 6,145 34,388 27,494 4,675 132 4,865 117,650 
Nonaccrual9,500 — — 4,707 9,500 8,528 — — 22,735 
Commercial and industrial$9,698 $2,130,000 $338,716 $2,942,451 $2,169,643 $483,571 $558,983 $723,583 $9,346,947 
Commercial real estate - owner occupied:
Risk rating:
Pass$— $22,344 $87,095 $205,922 $234,300 $150,009 $152,649 $151,106 $1,003,424 
Special Mention— — — — — 3,483 9,500 274 13,257 
Potential Problem— — 2,812 877 11,651 4,064 518 12,156 32,077 
Nonaccrual— 1,470 — — — — 1,478 
Commercial real estate - owner occupied$$22,344 $89,914 $208,269 $245,950 $157,555 $162,667 $163,536 $1,050,236 
Commercial and business lending:
Risk rating:
Pass$71 $2,086,055 $475,201 $3,340,812 $2,461,397 $618,883 $712,044 $836,323 $10,530,715 
Special Mention— 86,593 — 30,540 31,161 6,396 9,500 33,775 197,965 
Potential Problem128 39,951 8,956 36,661 39,145 24,739 649 17,021 167,124 
Nonaccrual9,508 — 6,177 9,500 8,528 — — 24,213 
Commercial and business lending$9,707 $2,212,600 $484,166 $3,414,190 $2,541,203 $658,546 $722,194 $887,119 $10,920,017 
Commercial real estate - investor:
Risk rating:
Pass$— $118,873 $324,298 $1,506,258 $1,375,935 $612,765 $489,024 $411,246 $4,838,398 
Special Mention— — 18,454 92,149 22,247 8,225 — — 141,075 
Potential Problem— — 24,803 22,047 22,209 — 1,019 19,575 89,653 
Nonaccrual— — — — 24,855 — — 267 25,122 
Commercial real estate - investor$— $118,873 $367,555 $1,620,454 $1,445,246 $620,991 $490,042 $431,088 $5,094,249 
Real estate construction:
Risk rating:
Pass$— $29,616 $34,604 $1,025,918 $812,505 $197,722 $7,510 $11,059 $2,118,934 
Special Mention— — — — — 12,308 15,651 — 27,958 
Nonaccrual— — — — — — — 178 178 
Real estate construction$— $29,616 $34,604 $1,025,918 $812,505 $210,030 $23,160 $11,237 $2,147,070 
Commercial real estate lending:
Risk rating:
Pass$— $148,489 $358,901 $2,532,176 $2,188,440 $810,487 $496,533 $422,305 $6,957,332 
Special Mention— — 18,454 92,149 22,247 20,533 15,651 — 169,033 
Potential Problem— — 24,803 22,047 22,209 — 1,019 19,575 89,653 
Nonaccrual— — — — 24,855 — — 445 25,300 
Commercial real estate lending$— $148,489 $402,159 $2,646,372 $2,257,752 $831,020 $513,203 $442,325 $7,241,318 
Total commercial:
Risk rating:
Pass$71 $2,234,544 $834,103 $5,872,988 $4,649,837 $1,429,370 $1,208,578 $1,258,628 $17,488,047 
Special Mention— 86,593 18,454 122,689 53,408 26,929 25,151 33,775 366,999 
Potential Problem128 39,951 33,760 58,708 61,354 24,739 1,668 36,596 256,776 
Nonaccrual9,508 — 6,177 34,355 8,528 — 445 49,513 
Total commercial$9,707 $2,361,089 $886,324 $6,060,562 $4,798,955 $1,489,566 $1,235,396 $1,329,444 $18,161,335 
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Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost BasisYTD 20232022202120202019PriorTotal
Residential mortgage:
Risk rating:
Pass$— $— $85,201 $1,490,848 $2,221,515 $1,687,853 $798,205 $2,261,293 $8,544,915 
Special Mention— — 91 — — 95 — 105 291 
Potential Problem— — 45 216 548 — 551 323 1,684 
Nonaccrual— — 279 7,384 4,101 8,394 4,356 33,760 58,274 
Residential mortgage$— $— $85,616 $1,498,448 $2,226,164 $1,696,342 $803,113 $2,295,481 $8,605,164 
Auto finance:
Risk rating:
Pass$— $— $239,138 $1,208,658 $98,290 $299 $1,020 $388 $1,547,793 
Special Mention— — — 1,168 141 — — — 1,310 
Nonaccrual— — — 1,952 474 — — 2,436 
Auto finance$— $— $239,138 $1,211,778 $98,906 $299 $1,029 $388 $1,551,538 
Home equity:
Risk rating:
Pass$2,173 $495,755 $230 $31,083 $6,835 $2,243 $5,732 $59,670 $601,549 
Special Mention18 124 — — — — 29 594 747 
Potential Problem14 — 14 196 — — 34 — 244 
Nonaccrual388 20 — 303 106 131 252 6,434 7,246 
Home equity$2,592 $495,900 $244 $31,583 $6,941 $2,374 $6,047 $66,698 $609,787 
Other consumer:
Risk rating:
Pass$90 $190,219 $1,860 $5,279 $4,017 $1,922 $849 $74,324 $278,471 
Special Mention617 — 13 11 10 23 676 
Nonaccrual— 44 — — 36 100 
Other consumer$91 $190,881 $1,860 $5,292 $4,035 $1,930 $866 $74,384 $279,248 
Total consumer:
Risk rating:
Pass$2,263 $685,974 $326,429 $2,735,869 $2,330,657 $1,692,318 $805,806 $2,395,676 $10,972,729 
Special Mention19 742 91 1,181 152 98 39 722 3,024 
Potential Problem14 — 59 413 548 — 585 323 1,928 
Nonaccrual388 65 279 9,639 4,688 8,530 4,624 40,231 68,056 
Total consumer$2,683 $686,781 $326,858 $2,747,101 $2,336,046 $1,700,946 $811,054 $2,436,951 $11,045,737 
Total loans:
Risk rating:
Pass$2,334 $2,920,518 $1,160,532 $8,608,857 $6,980,494 $3,121,688 $2,014,384 $3,654,303 $28,460,776 
Special Mention19 87,335 18,545 123,869 53,560 27,027 25,189 34,497 370,023 
Potential Problem141 39,951 33,818 59,120 61,903 24,739 2,253 36,919 258,704 
Nonaccrual9,896 65 287 15,816 39,044 17,058 4,624 40,675 117,569 
Total loans$12,390 $3,047,870 $1,213,182 $8,807,663 $7,135,000 $3,190,512 $2,046,450 $3,766,395 $29,207,072 
(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination.


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The following table presents loans by credit quality indicator by origination year at December 31, 2022:
Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost Basis20222021202020192018PriorTotal
Asset-based lending & equipment finance:
Risk rating:
Pass$— $47,446 $269,258 $121,914 $1,832 $653 $85 $— $441,189 
Potential Problem— — 1,448 — 16,250 — — — 17,698 
Asset-based lending & equipment finance:$— $47,446 $270,706 $121,914 $18,082 $653 $85 $— $458,887 
Commercial and industrial:
Risk rating:
Pass$1,423 $1,891,331 $2,976,288 $2,245,094 $566,001 $572,467 $330,557 $432,906 $9,014,644 
Special Mention— 93,209 3,411 23,607 — — 19 32,497 152,744 
Potential Problem447 24,549 39,952 4,193 5,637 38,169 218 6,133 118,851 
Nonaccrual3,926 — 5,210 — 9,119 — — — 14,329 
Commercial and industrial$5,796 $2,009,089 $3,024,861 $2,272,895 $580,757 $610,636 $330,794 $471,535 $9,300,567 
Commercial real estate - owner occupied:
Risk rating:
Pass$— $12,447 $211,645 $225,627 $163,965 $160,370 $73,487 $97,420 $944,961 
Special Mention— — — — 1,136 1,491 9,713 — 12,339 
Potential Problem— 1,325 1,238 11,141 5,523 10,769 370 4,055 34,422 
Commercial real estate - owner occupied$— $13,772 $212,883 $236,769 $170,624 $172,630 $83,570 $101,475 $991,722 
Commercial and business lending:
Risk rating:
Pass$1,423 $1,951,224 $3,457,191 $2,592,636 $731,798 $733,490 $404,129 $530,326 $10,400,794 
Special Mention— 93,209 3,411 23,607 1,136 1,491 9,732 32,497 165,083 
Potential Problem447 25,874 42,638 15,335 27,410 48,938 589 10,188 170,971 
Nonaccrual3,926 — 5,210 — 9,119 — — — 14,329 
Commercial and business lending$5,796 $2,070,307 $3,508,450 $2,631,578 $769,463 $783,919 $414,449 $573,010 $10,751,176 
Commercial real estate - investor:
Risk rating:
Pass$38,412 $106,280 $1,633,094 $1,419,000 $683,121 $530,444 $262,858 $210,299 $4,845,096 
Special Mention— — 61,968 24,149 7,361 9,400 — 10,455 113,333 
Potential Problem— — 16,147 21,303 27,635 1,333 19,017 7,099 92,535 
Nonaccrual— — 2,177 25,668 — — — 1,535 29,380 
Commercial real estate - investor$38,412 $106,280 $1,713,387 $1,490,120 $718,117 $541,177 $281,875 $229,387 $5,080,344 
Real estate construction:
Risk rating:
Pass$— $29,892 $900,593 $913,107 $241,230 $12,062 $2,226 $9,775 $2,108,885 
Special Mention— — — — 12,174 33,087 — — 45,261 
Potential Problem— — — — 970 — — — 970 
Nonaccrual— — — — — — — 105 105 
Real estate construction$— $29,892 $900,593 $913,107 $254,374 $45,149 $2,226 $9,880 $2,155,222 
Commercial real estate lending:
Risk rating:
Pass$38,412 $136,173 $2,533,687 $2,332,107 $924,351 $542,505 $265,083 $220,073 $6,953,981 
Special Mention— — 61,968 24,149 19,535 42,487 — 10,455 158,595 
Potential Problem— — 16,147 21,303 28,605 1,333 19,017 7,099 93,505 
Nonaccrual— — 2,177 25,668 — — — 1,640 29,485 
Commercial real estate lending$38,412 $136,173 $2,613,980 $2,403,227 $972,492 $586,326 $284,101 $239,267 $7,235,565 
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Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost Basis20222021202020192018PriorTotal
Total commercial:
Risk rating:
Pass$39,835 $2,087,396 $5,990,879 $4,924,743 $1,656,149 $1,275,996 $669,213 $750,399 $17,354,774 
Special Mention— 93,209 65,379 47,756 20,671 43,978 9,732 42,952 323,677 
Potential Problem447 25,874 58,785 36,638 56,016 50,271 19,606 17,287 264,476 
Nonaccrual3,926 — 7,387 25,668 9,119 — — 1,640 43,814 
Total commercial$44,208 $2,206,480 $6,122,430 $5,034,805 $1,741,955 $1,370,245 $698,550 $812,278 $17,986,742 
Residential mortgage:
Risk rating:
Pass$— $— $1,410,566 $2,184,125 $1,716,663 $817,164 $370,724 $1,951,406 $8,450,648 
Special Mention— — — 284 96 — — 63 444 
Potential Problem— — 455 71 — 738 29 685 1,978 
Nonaccrual— — 8,506 3,851 6,219 3,744 5,014 31,145 58,480 
Residential mortgage$— $— $1,419,527 $2,188,332 $1,722,979 $821,645 $375,768 $1,983,299 $8,511,550 
Auto finance:
Risk rating: