0000007789001-3134306/30/22FALSE2022Q212/31150,305,412P3YP3Y00000077892022-01-012022-06-300000007789exch:XNYS2022-01-012022-06-300000007789exch:XNYSus-gaap:SeriesEPreferredStockMember2022-01-012022-06-300000007789us-gaap:SeriesFPreferredStockMemberexch:XNYS2022-01-012022-06-3000000077892022-07-25xbrli:shares00000077892022-06-30iso4217:USD00000077892021-12-31iso4217:USDxbrli:shares00000077892022-04-012022-06-3000000077892021-04-012021-06-3000000077892021-01-012021-06-300000007789us-gaap:FiduciaryAndTrustMember2022-04-012022-06-300000007789us-gaap:FiduciaryAndTrustMember2021-04-012021-06-300000007789us-gaap:FiduciaryAndTrustMember2022-01-012022-06-300000007789us-gaap:FiduciaryAndTrustMember2021-01-012021-06-300000007789us-gaap:DepositAccountMember2022-04-012022-06-300000007789us-gaap:DepositAccountMember2021-04-012021-06-300000007789us-gaap:DepositAccountMember2022-01-012022-06-300000007789us-gaap:DepositAccountMember2021-01-012021-06-300000007789us-gaap:CreditAndDebitCardMember2022-04-012022-06-300000007789us-gaap:CreditAndDebitCardMember2021-04-012021-06-300000007789us-gaap:CreditAndDebitCardMember2022-01-012022-06-300000007789us-gaap:CreditAndDebitCardMember2021-01-012021-06-300000007789us-gaap:FinancialServiceOtherMember2022-04-012022-06-300000007789us-gaap:FinancialServiceOtherMember2021-04-012021-06-300000007789us-gaap:FinancialServiceOtherMember2022-01-012022-06-300000007789us-gaap:FinancialServiceOtherMember2021-01-012021-06-300000007789us-gaap:PreferredStockMember2021-12-310000007789us-gaap:CommonStockMember2021-12-310000007789us-gaap:AdditionalPaidInCapitalMember2021-12-310000007789us-gaap:RetainedEarningsMember2021-12-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000007789us-gaap:TreasuryStockMember2021-12-310000007789us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789us-gaap:PreferredStockMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789us-gaap:CommonStockMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789asb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMemberus-gaap:AdditionalPaidInCapitalMember2021-12-310000007789us-gaap:RetainedEarningsMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789us-gaap:TreasuryStockMemberasb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789asb:MortgageServicingRightsAccountingPolicyChangeFromAtCostToFairValueMember2021-12-310000007789us-gaap:RetainedEarningsMember2022-01-012022-03-3100000077892022-01-012022-03-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000007789us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000007789us-gaap:TreasuryStockMember2022-01-012022-03-310000007789us-gaap:TreasuryStockMemberasb:PerformanceServiceBasedRSAsRSAMember2022-01-012022-03-310000007789asb:PerformanceServiceBasedRSAsRSAMember2022-01-012022-03-310000007789us-gaap:PreferredStockMember2022-03-310000007789us-gaap:CommonStockMember2022-03-310000007789us-gaap:AdditionalPaidInCapitalMember2022-03-310000007789us-gaap:RetainedEarningsMember2022-03-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000007789us-gaap:TreasuryStockMember2022-03-3100000077892022-03-310000007789us-gaap:RetainedEarningsMember2022-04-012022-06-300000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000007789us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000007789us-gaap:TreasuryStockMember2022-04-012022-06-300000007789us-gaap:TreasuryStockMemberasb:PerformanceServiceBasedRSAsRSAMember2022-04-012022-06-300000007789asb:PerformanceServiceBasedRSAsRSAMember2022-04-012022-06-300000007789us-gaap:PreferredStockMember2022-06-300000007789us-gaap:CommonStockMember2022-06-300000007789us-gaap:AdditionalPaidInCapitalMember2022-06-300000007789us-gaap:RetainedEarningsMember2022-06-300000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000007789us-gaap:TreasuryStockMember2022-06-300000007789us-gaap:SeriesEPreferredStockMember2021-10-012021-12-310000007789us-gaap:RetainedEarningsMemberus-gaap:SeriesFPreferredStockMember2021-10-012021-12-310000007789us-gaap:PreferredStockMember2020-12-310000007789us-gaap:CommonStockMember2020-12-310000007789us-gaap:AdditionalPaidInCapitalMember2020-12-310000007789us-gaap:RetainedEarningsMember2020-12-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000007789us-gaap:TreasuryStockMember2020-12-3100000077892020-12-310000007789us-gaap:RetainedEarningsMember2021-01-012021-03-3100000077892021-01-012021-03-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000007789us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000007789us-gaap:TreasuryStockMember2021-01-012021-03-310000007789us-gaap:TreasuryStockMemberasb:BoardAuthorizedPurchaseProgramMember2021-01-012021-03-310000007789asb:BoardAuthorizedPurchaseProgramMember2021-01-012021-03-310000007789us-gaap:TreasuryStockMemberasb:PerformanceServiceBasedRSAsRSAMember2021-01-012021-03-310000007789asb:PerformanceServiceBasedRSAsRSAMember2021-01-012021-03-310000007789us-gaap:PreferredStockMember2021-03-310000007789us-gaap:CommonStockMember2021-03-310000007789us-gaap:AdditionalPaidInCapitalMember2021-03-310000007789us-gaap:RetainedEarningsMember2021-03-310000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000007789us-gaap:TreasuryStockMember2021-03-3100000077892021-03-310000007789us-gaap:RetainedEarningsMember2021-04-012021-06-300000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000007789us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000007789us-gaap:TreasuryStockMember2021-04-012021-06-300000007789us-gaap:TreasuryStockMemberasb:BoardAuthorizedPurchaseProgramMember2021-04-012021-06-300000007789asb:BoardAuthorizedPurchaseProgramMember2021-04-012021-06-300000007789us-gaap:TreasuryStockMemberasb:PerformanceServiceBasedRSAsRSAMember2021-04-012021-06-300000007789asb:PerformanceServiceBasedRSAsRSAMember2021-04-012021-06-300000007789us-gaap:PreferredStockMemberus-gaap:SeriesCPreferredStockMember2021-04-012021-06-300000007789us-gaap:RetainedEarningsMemberus-gaap:SeriesCPreferredStockMember2021-04-012021-06-300000007789us-gaap:SeriesCPreferredStockMember2021-04-012021-06-300000007789us-gaap:PreferredStockMember2021-06-300000007789us-gaap:CommonStockMember2021-06-300000007789us-gaap:AdditionalPaidInCapitalMember2021-06-300000007789us-gaap:RetainedEarningsMember2021-06-300000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000007789us-gaap:TreasuryStockMember2021-06-3000000077892021-06-300000007789us-gaap:SeriesCPreferredStockMember2021-01-012021-03-310000007789us-gaap:SeriesDPreferredStockMember2021-01-012021-03-310000007789us-gaap:SeriesEPreferredStockMember2021-01-012021-03-310000007789us-gaap:SeriesFPreferredStockMember2021-01-012021-03-310000007789us-gaap:SeriesDPreferredStockMember2021-04-012021-06-300000007789us-gaap:SeriesEPreferredStockMember2021-04-012021-06-300000007789us-gaap:SeriesFPreferredStockMember2021-04-012021-06-300000007789us-gaap:RetainedEarningsMember2022-01-012022-06-300000007789us-gaap:RetainedEarningsMember2021-01-012021-06-300000007789asb:ABRCMember2022-01-012022-06-300000007789asb:ABRCMember2021-01-012021-06-300000007789asb:BoardAuthorizedPurchaseProgramMember2022-01-012022-06-300000007789asb:BoardAuthorizedPurchaseProgramMember2021-01-012021-06-300000007789asb:PerformanceServiceBasedRSAsRSAMember2022-01-012022-06-300000007789asb:PerformanceServiceBasedRSAsRSAMember2021-01-012021-06-30asb:branch00000077892021-01-012021-12-310000007789asb:WhitnellMember2021-03-010000007789asb:WhitnellMember2021-01-012021-03-3100000077892021-02-26asb:percent00000077892022-01-010000007789us-gaap:EmployeeStockOptionMember2022-01-012022-06-300000007789us-gaap:EmployeeStockOptionMember2021-04-012021-06-300000007789us-gaap:EmployeeStockOptionMember2022-04-012022-06-300000007789us-gaap:EmployeeStockOptionMember2021-01-012021-06-300000007789us-gaap:EmployeeStockOptionMember2022-01-012022-06-300000007789us-gaap:EmployeeStockOptionMember2021-01-012021-06-300000007789us-gaap:EmployeeStockOptionMember2022-06-300000007789srt:MinimumMember2022-01-012022-06-30xbrli:pure0000007789srt:MaximumMember2022-01-012022-06-300000007789us-gaap:PerformanceSharesMember2021-01-012021-06-300000007789us-gaap:PerformanceSharesMember2022-01-012022-06-300000007789us-gaap:StockCompensationPlanMember2021-01-012021-06-300000007789us-gaap:StockCompensationPlanMember2022-01-012022-06-300000007789us-gaap:RestrictedStockMember2022-01-012022-06-300000007789us-gaap:RestrictedStockMember2021-01-012021-06-300000007789us-gaap:RestrictedStockMember2022-06-300000007789us-gaap:USTreasurySecuritiesMember2022-06-300000007789us-gaap:USTreasurySecuritiesMember2022-01-012022-06-300000007789us-gaap:AgencySecuritiesMember2022-06-300000007789us-gaap:AgencySecuritiesMember2022-01-012022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMember2022-01-012022-06-300000007789asb:FNMAFHLMCMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789asb:FNMAFHLMCMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-01-012022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-01-012022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-01-012022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMember2022-01-012022-06-300000007789us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-06-300000007789us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-01-012022-06-300000007789us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-06-300000007789us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-01-012022-06-300000007789us-gaap:DebtSecuritiesMember2022-06-300000007789us-gaap:DebtSecuritiesMember2022-01-012022-06-300000007789us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789us-gaap:USTreasurySecuritiesMember2021-12-310000007789us-gaap:USTreasurySecuritiesMember2021-01-012021-12-310000007789us-gaap:AgencySecuritiesMember2021-12-310000007789us-gaap:AgencySecuritiesMember2021-01-012021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMember2021-01-012021-12-310000007789asb:FNMAFHLMCMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789asb:FNMAFHLMCMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-01-012021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-01-012021-12-310000007789us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2021-12-310000007789us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2021-01-012021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-01-012021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMember2021-01-012021-12-310000007789us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-12-310000007789us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-01-012021-12-310000007789us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-12-310000007789us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-01-012021-12-310000007789us-gaap:DebtSecuritiesMember2021-12-310000007789us-gaap:DebtSecuritiesMember2021-01-012021-12-310000007789us-gaap:USTreasurySecuritiesMembersrt:FitchAAARatingMember2022-06-300000007789us-gaap:USTreasurySecuritiesMembersrt:FitchAARatingMember2022-06-300000007789us-gaap:USTreasurySecuritiesMembersrt:FitchARatingMember2022-06-300000007789us-gaap:USTreasurySecuritiesMemberasb:NotRatedMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMembersrt:FitchAAARatingMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMembersrt:FitchAARatingMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMembersrt:FitchARatingMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMemberasb:NotRatedMember2022-06-300000007789srt:FitchAAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789srt:FitchAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789srt:FitchARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789asb:NotRatedMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:NotRatedMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789srt:FitchAAARatingMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMembersrt:FitchAARatingMember2022-06-300000007789srt:FitchARatingMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789asb:NotRatedMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMembersrt:FitchAAARatingMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMembersrt:FitchAARatingMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMembersrt:FitchARatingMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:NotRatedMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAAARatingMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAARatingMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchARatingMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:NotRatedMember2022-06-300000007789srt:FitchAAARatingMember2022-06-300000007789srt:FitchAARatingMember2022-06-300000007789srt:FitchARatingMember2022-06-300000007789asb:NotRatedMember2022-06-300000007789us-gaap:USTreasurySecuritiesMembersrt:FitchAAARatingMember2021-12-310000007789us-gaap:USTreasurySecuritiesMembersrt:FitchAARatingMember2021-12-310000007789us-gaap:USTreasurySecuritiesMembersrt:FitchARatingMember2021-12-310000007789us-gaap:USTreasurySecuritiesMemberasb:NotRatedMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMembersrt:FitchAAARatingMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMembersrt:FitchAARatingMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMembersrt:FitchARatingMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMemberasb:NotRatedMember2021-12-310000007789srt:FitchAAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-12-310000007789srt:FitchAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-12-310000007789srt:FitchARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-12-310000007789asb:NotRatedMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:NotRatedMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMembersrt:FitchAAARatingMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMembersrt:FitchAARatingMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMembersrt:FitchARatingMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:NotRatedMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAAARatingMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchAARatingMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMembersrt:FitchARatingMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:NotRatedMember2021-12-310000007789srt:FitchAAARatingMember2021-12-310000007789srt:FitchAARatingMember2021-12-310000007789srt:FitchARatingMember2021-12-310000007789asb:NotRatedMember2021-12-310000007789us-gaap:HeldtomaturitySecuritiesMember2022-06-300000007789us-gaap:HeldtomaturitySecuritiesMember2021-12-310000007789us-gaap:AvailableforsaleSecuritiesMember2022-06-300000007789us-gaap:AvailableforsaleSecuritiesMember2021-12-310000007789us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-06-300000007789us-gaap:USTreasurySecuritiesMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310000007789us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300000007789us-gaap:USTreasurySecuritiesMember2022-06-30asb:security0000007789us-gaap:USTreasurySecuritiesMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2022-06-300000007789us-gaap:USTreasurySecuritiesMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2022-06-300000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2022-06-300000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2022-06-300000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2022-06-300000007789us-gaap:USStatesAndPoliticalSubdivisionsMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2021-12-310000007789us-gaap:USStatesAndPoliticalSubdivisionsMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberasb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2021-12-310000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionslessthanoneyearMember2021-12-310000007789asb:HeldtomaturitysecuritiesinunrealizedlosspositionsqualitativedisclosurenumberofpositionsgreaterthanorequaltooneyearMember2021-12-310000007789us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember2022-06-300000007789us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember2021-12-310000007789asb:FederalReserveBankStockMember2022-06-300000007789asb:FederalReserveBankStockMember2021-12-310000007789asb:PaycheckProtectionProgramMember2022-06-300000007789asb:PaycheckProtectionProgramMember2021-12-310000007789asb:AssetBasedLendingMember2022-06-300000007789asb:AssetBasedLendingMember2021-12-310000007789asb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789asb:CommercialAndBusinessLendingMember2022-06-300000007789asb:CommercialAndBusinessLendingMember2021-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789us-gaap:ConstructionLoansMember2022-06-300000007789us-gaap:ConstructionLoansMember2021-12-310000007789us-gaap:CommercialRealEstatePortfolioSegmentMember2022-06-300000007789us-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMember2021-12-310000007789us-gaap:ResidentialMortgageMember2022-06-300000007789us-gaap:ResidentialMortgageMember2021-12-310000007789asb:AutoMember2022-06-300000007789asb:AutoMember2021-12-310000007789us-gaap:HomeEquityMember2022-06-300000007789us-gaap:HomeEquityMember2021-12-310000007789asb:OtherConsumerMember2022-06-300000007789asb:OtherConsumerMember2021-12-310000007789us-gaap:ConsumerPortfolioSegmentMember2022-06-300000007789us-gaap:ConsumerPortfolioSegmentMember2021-12-310000007789us-gaap:LoansAndFinanceReceivablesMember2022-06-300000007789us-gaap:LoansAndFinanceReceivablesMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:PaycheckProtectionProgramMemberus-gaap:PassMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMemberasb:PaycheckProtectionProgramMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:PaycheckProtectionProgramMember2022-06-300000007789asb:AssetBasedLendingMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberasb:AssetBasedLendingMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789asb:AssetBasedLendingMemberus-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMember2022-06-300000007789asb:AssetBasedLendingMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndIndustrialFinancingReceivableMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:NonaccrualLoanMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMember2022-06-300000007789us-gaap:ConsumerLoanMemberasb:AutoMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMemberasb:AutoMember2022-06-300000007789us-gaap:ConsumerLoanMemberasb:AutoMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberasb:AutoMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberasb:PotentialProblemMemberus-gaap:HomeEquityLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:ConsumerLoanMemberus-gaap:PassMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:ConsumerLoanMemberasb:NonaccrualLoanMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:ConsumerLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberasb:PotentialProblemMember2022-06-300000007789us-gaap:ConsumerLoanMemberasb:NonaccrualLoanMember2022-06-300000007789us-gaap:ConsumerLoanMember2022-06-300000007789us-gaap:PassMember2022-06-300000007789us-gaap:SpecialMentionMember2022-06-300000007789asb:PotentialProblemMember2022-06-300000007789asb:NonaccrualLoanMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberasb:PaycheckProtectionProgramMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:PaycheckProtectionProgramMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMemberasb:PaycheckProtectionProgramMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:PaycheckProtectionProgramMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:PaycheckProtectionProgramMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndIndustrialFinancingReceivableMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:NonaccrualLoanMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialAndBusinessLendingMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:RealEstateConstructionMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:ResidentialMortgageMember2021-12-310000007789us-gaap:ConsumerLoanMemberasb:AutoMemberus-gaap:PassMember2021-12-310000007789us-gaap:ConsumerLoanMemberasb:AutoMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberasb:AutoMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberasb:PotentialProblemMemberus-gaap:HomeEquityLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:HomeEquityLoanMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:ConsumerLoanMemberus-gaap:PassMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:ConsumerLoanMemberasb:NonaccrualLoanMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:ConsumerLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMemberus-gaap:ConsumerLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberasb:PotentialProblemMember2021-12-310000007789us-gaap:ConsumerLoanMemberasb:NonaccrualLoanMember2021-12-310000007789us-gaap:ConsumerLoanMember2021-12-310000007789us-gaap:PassMember2021-12-310000007789us-gaap:SpecialMentionMember2021-12-310000007789asb:PotentialProblemMember2021-12-310000007789asb:NonaccrualLoanMember2021-12-310000007789us-gaap:FinancingReceivables30To59DaysPastDueMemberasb:PaycheckProtectionProgramMember2022-06-300000007789asb:PaycheckProtectionProgramMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:PaycheckProtectionProgramMember2022-06-300000007789asb:AssetBasedLendingMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789asb:AssetBasedLendingMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:AssetBasedLendingMember2022-06-300000007789us-gaap:FinancingReceivables30To59DaysPastDueMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:CommercialAndIndustrialFinancingReceivableMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789asb:CommercialAndBusinessLendingMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789asb:CommercialAndBusinessLendingMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialAndBusinessLendingMember2022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConstructionLoansMember2022-06-300000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-06-300000007789us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789us-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialMortgageMember2022-06-300000007789asb:AutoMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789asb:AutoMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:AutoMember2022-06-300000007789us-gaap:HomeEquityMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789us-gaap:HomeEquityMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:HomeEquityMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789asb:OtherConsumerMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-06-300000007789us-gaap:ConsumerLoanMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerLoanMember2022-06-300000007789us-gaap:FinancingReceivables30To59DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivables60To89DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-06-300000007789us-gaap:FinancingReceivables30To59DaysPastDueMemberasb:PaycheckProtectionProgramMember2021-12-310000007789asb:PaycheckProtectionProgramMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:PaycheckProtectionProgramMember2021-12-310000007789asb:AssetBasedLendingMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789asb:AssetBasedLendingMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:AssetBasedLendingMember2021-12-310000007789us-gaap:FinancingReceivables30To59DaysPastDueMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789asb:CommercialAndIndustrialFinancingReceivableMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789asb:CommercialAndBusinessLendingMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789asb:CommercialAndBusinessLendingMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialAndBusinessLendingMember2021-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConstructionLoansMember2021-12-310000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310000007789us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000007789us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000007789us-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789us-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialMortgageMember2021-12-310000007789asb:AutoMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789asb:AutoMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberasb:AutoMember2021-12-310000007789us-gaap:HomeEquityMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789us-gaap:HomeEquityMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:HomeEquityMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789asb:OtherConsumerMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-12-310000007789us-gaap:ConsumerLoanMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerLoanMember2021-12-310000007789us-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310000007789us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-12-310000007789asb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789us-gaap:ConstructionLoansMember2022-06-300000007789us-gaap:ConstructionLoansMember2021-12-310000007789us-gaap:ResidentialMortgageMember2022-06-300000007789us-gaap:ResidentialMortgageMember2021-12-310000007789us-gaap:HomeEquityMember2022-06-300000007789us-gaap:HomeEquityMember2021-12-310000007789asb:OtherConsumerMember2022-06-300000007789asb:OtherConsumerMember2021-12-310000007789asb:CommercialAndIndustrialFinancingReceivableMember2022-01-012022-06-30asb:loan0000007789asb:CommercialAndIndustrialFinancingReceivableMember2021-01-012021-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMember2022-01-012022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMember2021-01-012021-06-300000007789us-gaap:ResidentialMortgageMember2022-01-012022-06-300000007789us-gaap:ResidentialMortgageMember2021-01-012021-06-300000007789us-gaap:HomeEquityMember2022-01-012022-06-300000007789us-gaap:HomeEquityMember2021-01-012021-06-300000007789us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-06-300000007789us-gaap:ResidentialPortfolioSegmentMember2021-01-012021-06-300000007789asb:PossibleLiquidityIssuesMember2022-06-300000007789asb:PossibleLiquidityIssuesMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:PaycheckProtectionProgramMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:PaycheckProtectionProgramMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:PaycheckProtectionProgramMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:AssetBasedLendingMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:AssetBasedLendingMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:AssetBasedLendingMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndBusinessLendingMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndBusinessLendingMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndBusinessLendingMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:ConstructionLoansMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ConstructionLoansMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:ConstructionLoansMember2022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ResidentialPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:ResidentialPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:AutoMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:AutoMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:AutoMember2022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:HomeEquityMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:HomeEquityMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:HomeEquityMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:InstallmentAndCreditCardsPortfolioSegmentExcludingAutoMember2021-12-310000007789asb:AllowanceForLoanLossesMemberasb:InstallmentAndCreditCardsPortfolioSegmentExcludingAutoMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberasb:InstallmentAndCreditCardsPortfolioSegmentExcludingAutoMember2022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:ConsumerPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ConsumerPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMemberus-gaap:ConsumerPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoanLossesMember2021-12-310000007789asb:AllowanceForLoanLossesMember2022-01-012022-06-300000007789asb:AllowanceForLoanLossesMember2022-06-300000007789asb:AssetBasedLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789asb:AssetBasedLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789asb:AssetBasedLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-01-012022-06-300000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789asb:CommercialAndBusinessLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789asb:CommercialAndBusinessLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789asb:CommercialAndBusinessLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789us-gaap:ConstructionLoansMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789us-gaap:ConstructionLoansMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789us-gaap:ConstructionLoansMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberus-gaap:CommercialPortfolioSegmentMember2022-01-012022-06-300000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789us-gaap:HomeEquityMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789us-gaap:HomeEquityMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789us-gaap:HomeEquityMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789asb:InstallmentPortFolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789asb:InstallmentPortFolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789asb:InstallmentPortFolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789us-gaap:ReserveForOffBalanceSheetActivitiesMember2021-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMember2022-01-012022-06-300000007789us-gaap:ReserveForOffBalanceSheetActivitiesMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:PaycheckProtectionProgramMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:PaycheckProtectionProgramMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:PaycheckProtectionProgramMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AssetBasedLendingMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AssetBasedLendingMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AssetBasedLendingMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndIndustrialFinancingReceivableMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndBusinessLendingMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndBusinessLendingMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndBusinessLendingMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConstructionLoansMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConstructionLoansMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConstructionLoansMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ResidentialPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ResidentialPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AutoMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AutoMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AutoMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:HomeEquityMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:HomeEquityMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:HomeEquityMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:InstallmentAndCreditCardsPortfolioSegmentExcludingAutoMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:InstallmentAndCreditCardsPortfolioSegmentExcludingAutoMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:InstallmentAndCreditCardsPortfolioSegmentExcludingAutoMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConsumerPortfolioSegmentMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConsumerPortfolioSegmentMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConsumerPortfolioSegmentMember2022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMember2022-01-012022-06-300000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMember2022-06-300000007789asb:AllowanceForLoanLossesMemberasb:PaycheckProtectionProgramMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:PaycheckProtectionProgramMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:AssetBasedLendingMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:AssetBasedLendingMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndIndustrialFinancingReceivableMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndBusinessLendingMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialAndBusinessLendingMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ConstructionLoansMember2020-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ConstructionLoansMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ResidentialPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:AutoMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:AutoMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:HomeEquityMember2020-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:HomeEquityMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:InstallmentPortFolioSegmentMember2020-12-310000007789asb:AllowanceForLoanLossesMemberasb:InstallmentPortFolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMemberasb:InstallmentPortFolioSegmentMember2021-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoanLossesMemberus-gaap:ConsumerPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoanLossesMember2020-12-310000007789asb:AllowanceForLoanLossesMember2021-01-012021-12-310000007789asb:AssetBasedLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789asb:AssetBasedLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberasb:CommercialAndIndustrialFinancingReceivableMember2020-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-01-012021-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789asb:CommercialRealEstateOwnerOccupiedPortfolioMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789asb:CommercialAndBusinessLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789asb:CommercialAndBusinessLendingMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789asb:CommercialRealEstateInvestorPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789us-gaap:ConstructionLoansMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789us-gaap:ConstructionLoansMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-12-310000007789us-gaap:HomeEquityMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789us-gaap:HomeEquityMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789asb:InstallmentPortFolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789asb:InstallmentPortFolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMember2020-12-310000007789us-gaap:ReserveForOffBalanceSheetActivitiesMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:PaycheckProtectionProgramMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:PaycheckProtectionProgramMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AssetBasedLendingMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AssetBasedLendingMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndIndustrialFinancingReceivableMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndIndustrialFinancingReceivableMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateOwnerOccupiedPortfolioMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndBusinessLendingMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialAndBusinessLendingMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:CommercialRealEstateInvestorPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConstructionLoansMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConstructionLoansMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ResidentialPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AutoMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:AutoMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:HomeEquityMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:HomeEquityMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:InstallmentPortFolioSegmentMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:InstallmentPortFolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberasb:InstallmentPortFolioSegmentMember2021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConsumerPortfolioSegmentMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMemberus-gaap:ConsumerPortfolioSegmentMember2021-01-012021-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMember2020-12-310000007789asb:AllowanceForLoansLossesAndUnfundedCommitmentsMember2021-01-012021-12-3100000077892022-05-012022-06-300000007789us-gaap:CoreDepositsMember2021-12-310000007789us-gaap:CoreDepositsMember2020-12-310000007789us-gaap:CoreDepositsMember2022-06-300000007789us-gaap:CoreDepositsMember2022-01-012022-06-300000007789us-gaap:CoreDepositsMember2021-01-012021-12-310000007789us-gaap:OtherIntangibleAssetsMember2021-12-310000007789us-gaap:OtherIntangibleAssetsMember2020-12-310000007789us-gaap:OtherIntangibleAssetsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-01-012022-06-300000007789us-gaap:OtherIntangibleAssetsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-01-012021-12-310000007789us-gaap:OtherIntangibleAssetsMember2022-06-300000007789us-gaap:OtherIntangibleAssetsMember2022-01-012022-06-300000007789us-gaap:OtherIntangibleAssetsMember2021-01-012021-12-310000007789us-gaap:ServicingContractsMember2022-06-300000007789us-gaap:MaturityOvernightAndOnDemandMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-06-300000007789us-gaap:MaturityOvernightAndOnDemandMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-12-310000007789asb:TwoThousandFourteenSubordinatedNotesMember2014-11-012014-11-300000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:CommodityContractMember2022-06-300000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2022-06-300000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2022-06-300000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2021-12-310000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2021-12-310000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-06-300000007789us-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeForwardMember2022-06-300000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-12-310000007789us-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeForwardMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2022-06-300000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:CommodityContractMember2022-06-300000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:CommodityContractMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2021-12-310000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:CommodityContractMember2021-12-310000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:InterestRateLockCommitmentsMember2022-06-300000007789us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberasb:InterestRateLockCommitmentsAndForwardCommitmentsTotalMember2022-06-300000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:InterestRateLockCommitmentsMember2022-06-300000007789us-gaap:FairValueInputsLevel3Member2022-06-300000007789us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:InterestRateLockCommitmentsMember2021-12-310000007789us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberasb:InterestRateLockCommitmentsAndForwardCommitmentsTotalMember2021-12-310000007789us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:InterestRateLockCommitmentsMember2021-12-310000007789us-gaap:FairValueInputsLevel3Member2021-12-310000007789us-gaap:OtherAssetsMember2022-06-300000007789us-gaap:OtherLiabilitiesMember2022-06-300000007789us-gaap:OtherAssetsMember2021-12-310000007789us-gaap:OtherLiabilitiesMember2021-12-310000007789us-gaap:DesignatedAsHedgingInstrumentMember2019-12-310000007789us-gaap:DesignatedAsHedgingInstrumentMember2022-06-300000007789us-gaap:InterestIncomeMember2022-04-012022-06-300000007789us-gaap:InterestIncomeMember2021-04-012021-06-300000007789us-gaap:InterestIncomeMember2022-01-012022-06-300000007789us-gaap:InterestIncomeMember2021-01-012021-06-300000007789us-gaap:InterestIncomeMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-04-012022-06-300000007789us-gaap:InterestIncomeMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-04-012021-06-300000007789us-gaap:InterestIncomeMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-01-012022-06-300000007789us-gaap:InterestIncomeMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-01-012021-06-300000007789asb:CapitalMarketFeesMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2022-04-012022-06-300000007789asb:CapitalMarketFeesMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2021-04-012021-06-300000007789asb:CapitalMarketFeesMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2022-01-012022-06-300000007789asb:CapitalMarketFeesMemberasb:InterestRateRelatedInstrumentsCustomerAndMirrorMember2021-01-012021-06-300000007789asb:InterestRateRelatedInstrumentsMSRsHedgeMemberus-gaap:MortgageBankingMember2022-04-012022-06-300000007789asb:InterestRateRelatedInstrumentsMSRsHedgeMemberus-gaap:MortgageBankingMember2021-04-012021-06-300000007789asb:InterestRateRelatedInstrumentsMSRsHedgeMemberus-gaap:MortgageBankingMember2022-01-012022-06-300000007789asb:InterestRateRelatedInstrumentsMSRsHedgeMemberus-gaap:MortgageBankingMember2021-01-012021-06-300000007789us-gaap:MortgageBankingMemberus-gaap:ForeignExchangeForwardMember2022-04-012022-06-300000007789us-gaap:MortgageBankingMemberus-gaap:ForeignExchangeForwardMember2021-04-012021-06-300000007789us-gaap:MortgageBankingMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-06-300000007789us-gaap:MortgageBankingMemberus-gaap:ForeignExchangeForwardMember2021-01-012021-06-300000007789us-gaap:MortgageBankingMemberus-gaap:CommodityContractMember2022-04-012022-06-300000007789us-gaap:MortgageBankingMemberus-gaap:CommodityContractMember2021-04-012021-06-300000007789us-gaap:MortgageBankingMemberus-gaap:CommodityContractMember2022-01-012022-06-300000007789us-gaap:MortgageBankingMemberus-gaap:CommodityContractMember2021-01-012021-06-300000007789asb:CapitalMarketFeesMemberus-gaap:InterestRateLockCommitmentsMember2022-04-012022-06-300000007789asb:CapitalMarketFeesMemberus-gaap:InterestRateLockCommitmentsMember2021-04-012021-06-300000007789asb:CapitalMarketFeesMemberus-gaap:InterestRateLockCommitmentsMember2022-01-012022-06-300000007789asb:CapitalMarketFeesMemberus-gaap:InterestRateLockCommitmentsMember2021-01-012021-06-300000007789us-gaap:ForwardContractsMemberasb:CapitalMarketFeesMember2022-04-012022-06-300000007789us-gaap:ForwardContractsMemberasb:CapitalMarketFeesMember2021-04-012021-06-300000007789us-gaap:ForwardContractsMemberasb:CapitalMarketFeesMember2022-01-012022-06-300000007789us-gaap:ForwardContractsMemberasb:CapitalMarketFeesMember2021-01-012021-06-300000007789us-gaap:InterestRateContractMember2022-06-300000007789us-gaap:InterestRateContractMember2021-12-310000007789us-gaap:CommitmentsToExtendCreditMember2022-06-300000007789us-gaap:CommitmentsToExtendCreditMember2021-12-310000007789asb:CommercialLettersOfCreditMember2022-06-300000007789asb:CommercialLettersOfCreditMember2021-12-310000007789us-gaap:StandbyLettersOfCreditMember2022-06-300000007789us-gaap:StandbyLettersOfCreditMember2021-12-310000007789asb:UnconsolidatedProjectsLowIncomeHousingMember2022-06-300000007789asb:UnconsolidatedProjectsLowIncomeHousingMember2021-12-310000007789asb:PrincipalInvestmentCommitmentMember2021-12-310000007789asb:PrincipalInvestmentCommitmentMember2022-06-300000007789us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-06-300000007789us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000007789us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberasb:FNMAFHLMCMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberasb:FNMAFHLMCMember2021-12-310000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-12-310000007789us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:DebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:DebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-06-300000007789us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-12-310000007789us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789asb:OtherDebtAndOtherEquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-06-300000007789asb:OtherDebtAndOtherEquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-12-310000007789asb:ResidentialLoansHeldForSaleMemberMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789asb:ResidentialLoansHeldForSaleMemberMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMember2022-06-300000007789us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMember2021-12-310000007789us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300000007789us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000007789asb:TBASecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300000007789asb:TBASecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000007789us-gaap:DerivativeFinancialInstrumentsAssetsMember2020-12-310000007789us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-12-310000007789asb:DerivativesMember2020-12-310000007789us-gaap:DerivativeFinancialInstrumentsAssetsMember2021-01-012021-12-310000007789us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2021-01-012021-12-310000007789asb:DerivativesMember2021-01-012021-12-310000007789us-gaap:DerivativeFinancialInstrumentsAssetsMember2021-12-310000007789us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2021-12-310000007789asb:DerivativesMember2021-12-310000007789us-gaap:DerivativeFinancialInstrumentsAssetsMember2022-01-012022-06-300000007789us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2022-01-012022-06-300000007789asb:DerivativesMember2022-01-012022-06-300000007789us-gaap:DerivativeFinancialInstrumentsAssetsMember2022-06-300000007789us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2022-06-300000007789asb:DerivativesMember2022-06-300000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-06-300000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-06-300000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2022-06-300000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2022-01-012022-06-300000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-12-310000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310000007789us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2021-01-012021-12-310000007789asb:DiscountedCashFlowMemberus-gaap:ServicingContractsMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMember2022-01-012022-06-300000007789asb:DiscountedCashFlowMemberus-gaap:ServicingContractsMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMember2022-01-012022-06-300000007789asb:DiscountedCashFlowMembersrt:WeightedAverageMemberus-gaap:ServicingContractsMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-06-300000007789us-gaap:FairValueInputsLevel3Memberasb:ImpairedFinanceReceivableMembersrt:MinimumMemberasb:AppraisalsDiscountedCashFlowMember2022-01-012022-06-300000007789us-gaap:FairValueInputsLevel3Memberasb:ImpairedFinanceReceivableMembersrt:MaximumMemberasb:AppraisalsDiscountedCashFlowMember2022-01-012022-06-300000007789srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberasb:ImpairedFinanceReceivableMemberasb:AppraisalsDiscountedCashFlowMember2022-01-012022-06-300000007789us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMemberasb:AppraisalsDiscountedCashFlowMember2022-01-012022-06-300000007789us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMemberasb:AppraisalsDiscountedCashFlowMember2022-01-012022-06-300000007789us-gaap:InterestRateLockCommitmentsMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberasb:AppraisalsDiscountedCashFlowMember2022-01-012022-06-300000007789us-gaap:FairValueInputsLevel1Member2022-06-300000007789us-gaap:FairValueInputsLevel1Member2021-12-310000007789us-gaap:FairValueInputsLevel2Member2022-06-300000007789us-gaap:FairValueInputsLevel2Member2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:OtherAssetsMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:OtherAssetsMember2021-12-310000007789us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2022-06-300000007789us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2021-12-310000007789us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel3Member2022-06-300000007789us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel3Member2021-12-310000007789us-gaap:FairValueInputsLevel2Memberus-gaap:OtherLiabilitiesMember2022-06-300000007789us-gaap:FairValueInputsLevel2Memberus-gaap:OtherLiabilitiesMember2021-12-310000007789us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-06-300000007789us-gaap:PensionPlansDefinedBenefitMember2022-04-012022-06-300000007789us-gaap:PensionPlansDefinedBenefitMember2021-04-012021-06-300000007789us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-06-300000007789us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-04-012022-06-300000007789us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-06-300000007789us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-06-300000007789us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-06-30asb:segment0000007789us-gaap:OperatingSegmentsMemberasb:CorporateandCommercialSpecialtysegmentMember2022-04-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:CorporateandCommercialSpecialtysegmentMember2021-04-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:CorporateandCommercialSpecialtysegmentMember2022-01-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:CorporateandCommercialSpecialtysegmentMember2021-01-012021-06-300000007789asb:CommunityConsumerandBusinesssegmentMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300000007789asb:CommunityConsumerandBusinesssegmentMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300000007789asb:CommunityConsumerandBusinesssegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300000007789asb:CommunityConsumerandBusinesssegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedSeriviesSegmentMember2022-04-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedSeriviesSegmentMember2021-04-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedSeriviesSegmentMember2022-01-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedSeriviesSegmentMember2021-01-012021-06-300000007789asb:WhitnellMember2021-01-012021-06-300000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-06-300000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-300000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-06-300000007789us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-012022-06-300000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310000007789us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300000007789us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FiduciaryAndTrustMember2022-04-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FiduciaryAndTrustMember2021-04-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FiduciaryAndTrustMember2022-01-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FiduciaryAndTrustMember2021-01-012021-06-300000007789us-gaap:DepositAccountMemberasb:CorporateandCommercialSpecialtyMember2022-04-012022-06-300000007789us-gaap:DepositAccountMemberasb:CorporateandCommercialSpecialtyMember2021-04-012021-06-300000007789us-gaap:DepositAccountMemberasb:CorporateandCommercialSpecialtyMember2022-01-012022-06-300000007789us-gaap:DepositAccountMemberasb:CorporateandCommercialSpecialtyMember2021-01-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:CreditAndDebitCardMember2022-04-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:CreditAndDebitCardMember2021-04-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:CreditAndDebitCardMember2022-01-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:CreditAndDebitCardMember2021-01-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FinancialServiceOtherMember2022-04-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FinancialServiceOtherMember2021-04-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FinancialServiceOtherMember2022-01-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:FinancialServiceOtherMember2021-01-012021-06-300000007789asb:CorporateandCommercialSpecialtyMember2022-04-012022-06-300000007789asb:CorporateandCommercialSpecialtyMember2021-04-012021-06-300000007789asb:CorporateandCommercialSpecialtyMember2022-01-012022-06-300000007789asb:CorporateandCommercialSpecialtyMember2021-01-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300000007789asb:CorporateandCommercialSpecialtyMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300000007789us-gaap:DepositAccountMemberasb:CommunityConsumerandBusinessMember2022-04-012022-06-300000007789us-gaap:DepositAccountMemberasb:CommunityConsumerandBusinessMember2021-04-012021-06-300000007789us-gaap:DepositAccountMemberasb:CommunityConsumerandBusinessMember2022-01-012022-06-300000007789us-gaap:DepositAccountMemberasb:CommunityConsumerandBusinessMember2021-01-012021-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:CreditAndDebitCardMember2022-04-012022-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:CreditAndDebitCardMember2021-04-012021-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:CreditAndDebitCardMember2022-01-012022-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:CreditAndDebitCardMember2021-01-012021-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:FinancialServiceOtherMember2022-04-012022-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:FinancialServiceOtherMember2021-04-012021-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:FinancialServiceOtherMember2022-01-012022-06-300000007789asb:CommunityConsumerandBusinessMemberus-gaap:FinancialServiceOtherMember2021-01-012021-06-300000007789asb:CommunityConsumerandBusinessMember2022-04-012022-06-300000007789asb:CommunityConsumerandBusinessMember2021-04-012021-06-300000007789asb:CommunityConsumerandBusinessMember2022-01-012022-06-300000007789asb:CommunityConsumerandBusinessMember2021-01-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:CommunityConsumerandBusinessMember2022-04-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:CommunityConsumerandBusinessMember2021-04-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:CommunityConsumerandBusinessMember2022-01-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:CommunityConsumerandBusinessMember2021-01-012021-06-300000007789us-gaap:DepositAccountMemberasb:RiskManagementandSharedServicesMember2022-04-012022-06-300000007789us-gaap:DepositAccountMemberasb:RiskManagementandSharedServicesMember2021-04-012021-06-300000007789us-gaap:DepositAccountMemberasb:RiskManagementandSharedServicesMember2022-01-012022-06-300000007789us-gaap:DepositAccountMemberasb:RiskManagementandSharedServicesMember2021-01-012021-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:CreditAndDebitCardMember2022-04-012022-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:CreditAndDebitCardMember2021-04-012021-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:CreditAndDebitCardMember2022-01-012022-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:CreditAndDebitCardMember2021-01-012021-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:FinancialServiceOtherMember2022-04-012022-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:FinancialServiceOtherMember2021-04-012021-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:FinancialServiceOtherMember2022-01-012022-06-300000007789asb:RiskManagementandSharedServicesMemberus-gaap:FinancialServiceOtherMember2021-01-012021-06-300000007789asb:RiskManagementandSharedServicesMember2022-04-012022-06-300000007789asb:RiskManagementandSharedServicesMember2021-04-012021-06-300000007789asb:RiskManagementandSharedServicesMember2022-01-012022-06-300000007789asb:RiskManagementandSharedServicesMember2021-01-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedServicesMember2022-04-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedServicesMember2021-04-012021-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedServicesMember2022-01-012022-06-300000007789us-gaap:OperatingSegmentsMemberasb:RiskManagementandSharedServicesMember2021-01-012021-06-300000007789srt:MinimumMember2022-06-300000007789srt:MaximumMember2022-06-300000007789us-gaap:EquipmentMember2022-06-300000007789us-gaap:EquipmentMember2021-12-310000007789asb:RetailandCorporateOfficesMember2022-06-300000007789asb:RetailandCorporateOfficesMember2021-12-310000007789us-gaap:LandMember2022-06-300000007789us-gaap:LandMember2021-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2022
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

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 July 25, 2022 was 150,305,412.
1


ASSOCIATED BANC-CORP
Table of Contents

2


ASSOCIATED BANC-CORP
Commonly Used Acronyms and Abbreviations
The following listing provides a reference of common acronyms and abbreviations used throughout the document:
ACLLAllowance for Credit Losses on Loans
AFSAvailable for Sale
ALCO Asset / Liability Committee
ARRCAlternative Reference Rate Committee
ASCAccounting Standards Codification
Associated / the Company / Corporation / our / weAssociated Banc-Corp collectively with all of its subsidiaries and affiliates
ASUAccounting Standards Update
the BankAssociated Bank, National Association
Basel IIIInternational framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity
bpbasis point(s)
CDsCertificates of Deposit
CDIsCore Deposit Intangibles
CECLCurrent Expected Credit Losses
CET1Common Equity Tier 1
CRACommunity Reinvestment Act
CRECommercial Real Estate
EAREarnings at Risk
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
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
FOMCFederal Open Market Committee
FTEsFull-time equivalent employees
FTPFunds Transfer Pricing
GAAPGenerally Accepted Accounting Principles
GNMAGovernment National Mortgage Association
GSEsGovernment-Sponsored Enterprises
HTMHeld to Maturity
LIBORLondon Interbank Offered Rate
LOCOMLower of Cost or Market
LTVLoan-to-Value
MSRsMortgage Servicing Rights
MVEMarket Value of Equity
Net Free FundsNoninterest-bearing sources of funds
NIINet Interest Income
NPAsNonperforming Assets
OREOOther Real Estate Owned
Parent CompanyAssociated Banc-Corp individually
PPPPaycheck Protection Program
3


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
RockefellerRockefeller Capital Management
S&PStandard & Poor's
SBASmall Business Administration
SECU.S. Securities and Exchange Commission
Series C Preferred StockThe Corporation's 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference $1,000 per share
Series D Preferred StockThe Corporation's 5.375% Non-Cumulative Perpetual Preferred Stock, Series D, liquidation preference $1,000 per share
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
TBATo-Be-Announced
TDRsTroubled Debt Restructurings
WhitnellWhitnell & Co.
YTDYear-to-Date

4

PART I - FINANCIAL INFORMATION
ITEM 1.Financial Statements:
ASSOCIATED BANC-CORP
Consolidated Balance Sheets
 Jun 30, 2022Dec 31, 2021
 (In Thousands, except share and per share data)
(Unaudited)(Audited)
Assets
Cash and due from banks$397,364 $343,831 
Interest-bearing deposits in other financial institutions436,887 681,684 
Federal funds sold and securities purchased under agreements to resell32,820 — 
AFS investment securities, at fair value2,677,511 4,332,015 
HTM investment securities, net, at amortized cost3,945,206 2,238,947 
Equity securities19,039 18,352 
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost237,616 168,281 
Residential loans held for sale42,676 136,638 
Commercial loans held for sale44,721 — 
Loans26,494,698 24,224,949 
Allowance for loan losses(280,771)(280,015)
Loans, net26,213,927 23,944,934 
Tax credit and other investments275,165 293,733 
Premises and equipment, net387,633 385,173 
Bank and corporate owned life insurance675,347 680,021 
Goodwill1,104,992 1,104,992 
Other intangible assets, net53,687 58,093 
Mortgage servicing rights, net(a)
76,570 54,862 
Interest receivable95,426 80,528 
Other assets519,403 582,168 
Total assets$37,235,990 $35,104,253 
Liabilities and Stockholders' Equity
Noninterest-bearing demand deposits$8,085,702 $8,504,077 
Interest-bearing deposits20,490,874 19,962,353 
Total deposits28,576,577 28,466,430 
Federal funds purchased and securities sold under agreements to repurchase682,839 319,532 
Commercial paper22,781 34,730 
FHLB advances3,258,039 1,621,047 
Other long-term funding249,820 249,324 
Allowance for unfunded commitments36,776 39,776 
Accrued expenses and other liabilities449,776 348,560 
Total liabilities$33,276,608 $31,079,399 
Stockholders’ Equity
Preferred equity$193,195 $193,195 
Common equity
Common stock$1,752 $1,752 
Surplus1,710,319 1,713,851 
Retained earnings2,768,736 2,672,601 
Accumulated other comprehensive (loss)(182,788)(10,317)
Treasury stock, at cost(531,832)(546,229)
Total common equity3,766,187 3,831,658 
Total stockholders’ equity3,959,382 4,024,853 
Total liabilities and stockholders’ equity$37,235,990 $35,104,253 
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 outstanding150,126,419 149,342,641 
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.
See accompanying notes to consolidated financial statements.
5

Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Income (Unaudited)
 Three Months Ended Jun 30,Six Months Ended Jun 30,
 (In Thousands, except per share data)
2022202120222021
Interest income
Interest and fees on loans$199,876 $174,228 $367,573 $348,277 
Interest and dividends on investment securities
Taxable18,317 8,840 34,789 15,855 
Tax-exempt16,379 14,366 32,487 28,528 
Other interest2,420 1,826 4,413 3,521 
Total interest income236,991 199,260 439,261 396,180 
Interest expense
Interest on deposits8,019 4,609 11,591 10,519 
Interest on federal funds purchased and securities sold under agreements to repurchase406 30 444 55 
Interest on other short-term funding13 
Interest on FHLB advances9,689 9,524 17,871 19,017 
Interest on long-term funding2,730 5,575 5,460 11,160 
Total interest expense20,845 19,745 35,367 40,764 
Net interest income216,146 179,515 403,893 355,416 
Provision for credit losses(2)(35,004)(3,992)(58,009)
Net interest income after provision for credit losses216,148 214,519 407,886 413,425 
Noninterest income
Wealth management fees21,332 22,706 43,735 45,120 
Service charges and deposit account fees16,506 15,549 33,363 30,404 
Card-based fees11,442 10,982 21,368 20,725 
Other fee-based revenue4,360 4,244 8,126 8,840 
Capital markets, net8,010 5,696 16,656 13,814 
Mortgage banking, net6,145 8,128 14,536 32,054 
Bank and corporate owned life insurance 4,106 3,088 6,177 5,791 
Asset gains (losses), net1,677 (14)1,865 4,796 
Investment securities gains (losses), net(8)24 12 (16)
Gains on sale of branches, net(a)
— 36 — 1,038 
Other1,888 3,004 4,086 6,221 
Total noninterest income75,458 73,443 149,925 168,786 
Noninterest expense
Personnel112,666 106,994 217,477 211,020 
Technology21,223 20,236 42,707 40,975 
Occupancy14,151 14,679 30,231 30,835 
Business development and advertising5,655 4,970 10,610 9,366 
Equipment4,960 5,481 9,920 10,999 
Legal and professional4,873 6,661 9,960 13,191 
Loan and foreclosure costs1,476 2,671 3,490 4,891 
FDIC assessment5,400 3,600 10,500 8,350 
Other intangible amortization2,203 2,203 4,405 4,439 
Other8,815 6,979 15,412 15,755 
Total noninterest expense181,420 174,475 354,712 349,821 
Income before income taxes110,187 113,487 203,099 232,389 
Income tax expense23,363 22,480 42,013 47,082 
Net income86,824 91,007 161,086 185,307 
Preferred stock dividends2,875 4,875 5,750 10,082 
Net income available to common equity$83,949 $86,131 $155,336 $175,226 
Earnings per common share
Basic$0.56 $0.56 $1.04 $1.14 
Diluted$0.56 $0.56 $1.03 $1.13 
Average common shares outstanding
Basic149,083 152,042 148,933 152,198 
Diluted150,203 153,381 150,265 153,473 
Numbers may not sum due to rounding.
(a) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell. See Note 2 Acquisitions and Dispositions for additional details on the branch sales.
See accompanying notes to consolidated financial statements.
6

Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended Jun 30,Six Months Ended Jun 30,
 ($ in Thousands)
2022202120222021
Net income$86,824 $91,007 $161,086 $185,307 
Other comprehensive income (loss), net of tax
AFS investment securities
Net unrealized gains (losses)(65,038)7,978 (168,321)(16,002)
Unrealized (losses) on AFS securities transferred to HTM securities— — (67,604)— 
Amortization of net unrealized losses on AFS securities transferred to HTM securities3,273 645 4,381 1,163 
Reclassification adjustment for net losses (gains) realized in net income(24)(12)16 
Income tax (expense) benefit15,998 (2,277)59,096 3,574 
Other comprehensive income (loss) on AFS securities(45,758)6,322 (172,460)(11,249)
Defined benefit pension and postretirement obligations
Amortization of prior service cost(81)(37)(163)(74)
Amortization of actuarial loss74 1,050 147 2,100 
Income tax (expense) benefit(253)(506)
Other comprehensive income (loss) on pension and postretirement obligations(6)760 (12)1,519 
Total other comprehensive income (loss)(45,764)7,082 (172,472)(9,729)
Comprehensive income (loss)$41,060 $98,088 $(11,386)$175,578 
Numbers may not sum due to rounding.
See accompanying notes to consolidated financial statements.

7

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
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 shareholder's equity at beginning of period, as adjusted193,195 1,752 1,713,851 2,674,314 (10,317)(546,229)4,026,566 
Comprehensive income (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 
Comprehensive income:
Net income— — — 86,824 — — 86,824 
Other comprehensive (loss)— — — — (45,764)— (45,764)
Comprehensive income41,060 
Common stock issued:
Stock-based compensation plans, net— — (1,771)— — 1,910 139 
Purchase of treasury stock, stock-based compensation plans— — — — — (884)(884)
Cash dividends:
Common stock, $0.20 per share— — — (30,331)— — (30,331)
Preferred stock(b)
— — — (2,875)— — (2,875)
Stock-based compensation expense, net— — 3,986 — — — 3,986 
Balance, June 30, 2022$193,195 $1,752 $1,710,319 $2,768,736 $(182,788)$(531,832)$3,959,382 
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.

8

(In Thousands, except per share data)Preferred EquityCommon StockSurplusRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury StockTotal
Balance, December 31, 2020$353,512 $1,752 $1,720,329 $2,458,920 $12,618 $(456,198)$4,090,933 
Comprehensive income (loss)
Net income— — — 94,301 — — 94,301 
Other comprehensive (loss)— — — — (16,811)— (16,811)
Comprehensive income77,490 
Common stock issued
Stock-based compensation plans, net— — (16,986)— — 27,542 10,556 
Purchase of treasury stock, open market purchases— — — — — (17,973)(17,973)
Purchase of treasury stock, stock-based compensation plans— — — — — (3,593)(3,593)
Cash dividends
Common stock, $0.18 per share— — — (27,870)— — (27,870)
Preferred stock(a)
— — — (5,207)— — (5,207)
Stock-based compensation expense, net— — 3,444 — — — 3,444 
Balance, March 31, 2021$353,512 $1,752 $1,706,786 $2,520,144 $(4,193)$(450,222)$4,127,780 
Comprehensive income:
Net income— — — 91,007 — — 91,007 
Other comprehensive income— — — — 7,082 — 7,082 
Comprehensive income98,088 
Common stock issued:
Stock-based compensation plans, net— — (3,632)— — 11,250 7,618 
Purchase of treasury stock, open market purchases— — — — — (29,972)(29,972)
Purchase of treasury stock, stock-based compensation plans— — — — — (856)(856)
Cash dividends:
Common stock, $0.18 per share— — — (27,822)— — (27,822)
Preferred stock(b)
— — — (4,875)— — (4,875)
Redemption of preferred stock(63,313)— — (1,687)— — (65,000)
Stock-based compensation expense, net— — 5,092 — — — 5,092 
Balance, June 30, 2021$290,200 $1,752 $1,708,246 $2,576,766 $2,889 $(469,801)$4,110,052 
Numbers may not sum due to rounding.
(a) Series C, $0.3828125 per share; Series D, $0.3359375 per share; Series E, $0.3671875 per share; and Series F, $0.3515625 per share.
(b) Series C, $0.3197115 per share; Series D, $0.3359375 per share; Series E, $0.3671875 per share; and Series F, $0.3515625 per share.

See accompanying notes to consolidated financial statements.




9

Item 1. Financial Statements Continued:
ASSOCIATED BANC-CORP
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended Jun 30,
 ($ in Thousands)
20222021
Cash Flow From Operating Activities
Net income$161,086 $185,307 
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Provision for credit losses(3,992)(58,009)
Depreciation and amortization22,741 24,200 
Change in MSRs valuation(a)
(19,400)(10,239)
Amortization of other intangible assets4,405 4,439 
Amortization and accretion on earning assets, funding, and other, net10,315 10,796 
Net amortization of tax credit investments17,072 16,552 
Losses (gains) on sales of investment securities, net(12)16 
Asset (gains), net(1,865)(4,796)
(Gains) on sale of branch, net— (1,038)
(Gain) loss on mortgage banking activities, net3,036 (24,008)
Mortgage loans originated and acquired for sale(403,951)(889,315)
Proceeds from sales of mortgage loans held for sale500,410 884,581 
Changes in certain assets and liabilities
(Increase) decrease in interest receivable(14,898)8,466 
(Decrease) increase in interest payable1,501 (4,907)
(Decrease) increase in expense payable(24,791)11,274 
Decrease in net derivative position231,332 56,833 
Net change in other assets and other liabilities6,051 20,049 
Net cash provided by operating activities489,039 230,202 
Cash Flow From Investing Activities
Net decrease (increase) in loans(2,271,051)478,170 
Purchases of
AFS securities(502,912)(1,162,109)
HTM securities(202,271)(81,368)
Federal Home Loan Bank and Federal Reserve Bank stocks and equity securities(69,339)(1)
Premises, equipment, and software, net of disposals(33,373)(19,706)
Proceeds from
Sales of AFS and equity securities 1,069 158,743 
Prepayments, calls, and maturities of AFS securities 296,179 699,584 
Prepayments, calls, and maturities of HTM securities 111,796 195,107 
Sales, prepayments, calls, and maturities of other assets23,523 12,421 
Net cash received in business segment sale— 2,415 
Net change in tax credit and alternative investments(34,186)(34,200)
Net cash provided by (used in) investing activities(2,680,566)249,056 
Cash Flow From Financing Activities
Net increase in deposits110,280 813,098 
Net decrease in deposits due to branch sales— (31,083)
Net increase (decrease) in short-term funding351,358 (26,112)
Net increase in short-term FHLB advances2,045,000 — 
Repayment of long-term FHLB advances(408,870)(18,049)
Proceeds from long-term FHLB advances916 5,251 
(Repayment) proceeds of finance lease principal348 (1,035)
Proceeds from issuance of common stock for stock-based compensation plans6,793 18,174 
Redemption of preferred shares— (65,000)
Purchase of treasury stock, open market purchases— (47,945)
Purchase of treasury stock, stock-based compensation plans(6,078)(4,450)
Cash dividends on common stock(60,914)(55,693)
Cash dividends on preferred stock(5,750)(10,082)
Net cash provided by financing activities2,033,084 577,074 
Net increase (decrease) in cash and cash equivalents(158,444)1,056,332 
Cash and cash equivalents at beginning of period1,025,515 716,048 
Cash and cash equivalents at end of period(b)
$867,071 $1,772,379 
Numbers may not sum due to rounding.
(a) On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value. For all prior periods, MSRs were carried at LOCOM.
(b) No restricted cash due to the Federal Reserve reducing the required reserve ratio to zero.
10

ASSOCIATED BANC-CORP
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended Jun 30,
 ($ in Thousands)
20222021
Supplemental disclosures of cash flow information
Cash paid for interest$33,533 $44,782 
Cash (received from) income and franchise taxes2,432 54,179 
Loans and bank premises transferred to OREO1,817 18,535 
Capitalized mortgage servicing rights5,231 7,488 
Loans transferred from held for sale into portfolio, net4,149 9,970 
Transfer of AFS securities to HTM securities1,621,990 — 
Unsettled trades to purchase securities1,450 — 

11

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 2021 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 and MSRs valuation. 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 Acquisitions and Dispositions
Acquisitions:
The Corporation did not have any acquisitions during the first six months of 2022 or during 2021.
Dispositions:
2021
On March 1, 2021, the Corporation closed on the sale of its wealth management subsidiary, Whitnell, to Rockefeller for a purchase price of $8 million. Associated reported a first quarter 2021 pre-tax gain of $2 million, included in asset gains, net on the consolidated statements of income, in conjunction with the sale.
On February 26, 2021, the Bank completed the sale of one branch located in Monroe, Wisconsin to Summit Credit Union. Under the terms of the transaction, the Bank sold $31 million in total deposits and no loans. The Bank received an approximately 4% purchase premium on deposits transferred.
Note 3 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 2021 Annual Report on Form 10-K. As a result of the irrevocable election to account for MSRs under the fair value measurement methodology, as permitted under ASC 860-50-35-3, there has been a change to the Corporation's significant accounting policies since December 31, 2021, which is described below.
Mortgage Servicing Rights
The Corporation sells residential mortgage loans in the secondary market and typically retains the rights to service the loans sold. Upon sale, a MSRs asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. On January 1, 2022, the Corporation made the irrevocable election to account for its MSRs asset under the fair value measurement method. As a result of the change, a cumulative effect adjustment of $2 million, increasing retained earnings on the consolidated balance sheets, was recognized. Under this methodology, changes in the fair value are recognized in earnings as they occur through mortgage banking, net on the consolidated statements of income.
12

MSRs are not traded in active markets. A cash flow model is used to determine fair value. Key assumptions and estimates, including projected prepayment speeds, assumed servicing costs, ancillary income, costs to service delinquent loans, costs of foreclosure, and discount rates with option-adjusted spreads, used by this model are based on current market sources. Assumptions used to value MSRs are considered significant unobservable inputs. A separate third-party model is used to estimate prepayment speeds based on interest rates, housing turnover rates, estimated loan curtailment, anticipated defaults and other relevant factors. Fair value estimates from outside sources are received periodically to corroborate the results of the valuation model.
New Accounting Pronouncements Adopted
There were no applicable material accounting pronouncements adopted by the Corporation since December 31, 2021.
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 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 is not expected to have a material impact on the Corporation's results of operation, financial position or liquidity, but will result 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.
13

Note 4 Earnings Per Common Share
Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock awards). Presented below are the calculations for basic and diluted earnings per common share:
 Three Months Ended Jun 30,Six Months Ended Jun 30,
 (In Thousands, except per share data)2022202120222021
Net income$86,824 $91,007 $161,086 $185,307 
Preferred stock dividends(2,875)(4,875)(5,750)(10,082)
Net income available to common equity$83,949 $86,131 $155,336 $175,226 
Common shareholder dividends(30,126)(27,620)(60,499)(55,280)
Unvested share-based payment awards(205)(203)(415)(412)
Undistributed earnings$53,618 $58,309 $94,422 $119,533 
Undistributed earnings allocated to common shareholders$53,257 $57,887 $93,807 $118,722 
Undistributed earnings allocated to unvested share-based payment awards361 422 615 810 
Undistributed earnings$53,618 $58,309 $94,422 $119,533 
Basic
Distributed earnings to common shareholders$30,126 $27,620 $60,499 $55,280 
Undistributed earnings allocated to common shareholders53,257 57,887 93,807 118,722 
Total common shareholders earnings, basic$83,383 $85,506 $154,306 $174,002 
Diluted
Distributed earnings to common shareholders$30,126 $27,620 $60,499 $55,280 
Undistributed earnings allocated to common shareholders53,257 57,887 93,807 118,722 
Total common shareholders earnings, diluted$83,383 $85,506 $154,306 $174,002 
Weighted average common shares outstanding149,083 152,042 148,933 152,198 
Effect of dilutive common stock awards1,121 1,339 1,332 1,275 
Diluted weighted average common shares outstanding150,203 153,381 150,265 153,473 
Basic earnings per common share$0.56 $0.56 $1.04 $1.14 
Diluted earnings per common share$0.56 $0.56 $1.03 $1.13 
Anti-dilutive common stock options of approximately 3 million for the three and six months ended June 30, 2022 and 2021 were excluded from the earnings per common share calculation.
Note 5 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 six months ended June 30, 2022 is presented below:
Stock Options
Shares(a)
Weighted Average
Exercise Price
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value(a)
Outstanding at December 31, 20214,814 $20.72 5.96 years$12,532 
Exercised367 17.64 
Outstanding at June 30, 20224,447 $20.97 5.56 years$1,770 
Options Exercisable at June 30, 20223,805 $21.28 5.24 years$1,341 
(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 six months ended June 30, 2022, the intrinsic value of stock options exercised was $3 million compared to $6 million for the six months ended June 30, 2021. For the six months ended June 30, 2022, the total fair value of stock options vested was $2 million compared to $3 million for the six months ended June 30, 2021.
14

The Corporation recognized compensation expense for the vesting of stock options of approximately $469,000 for the six months ended June 30, 2022, compared to approximately $755,000 for the six months ended June 30, 2021. Compensation expense for the six months ended June 30, 2022 related to accelerated vesting of stock options for retirement eligible colleagues was immaterial. At June 30, 2022, the Corporation had approximately $855,000 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 Corporation's Compensation and Benefits Committee, 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 six months ended June 30, 2022:
Restricted Stock Awards
Shares(a)
Weighted Average
Grant Date Fair Value
Outstanding at December 31, 20212,635 $19.87 
Granted673 23.44 
Vested754 23.16 
Forfeited22 21.35 
Outstanding at June 30, 20222,532 $20.64 
(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 2021 and 2022 will cliff-vest after the three year performance period has ended. Service-based restricted stock awards granted during 2021 and 2022 will vest ratably over a period of four years. Expense for restricted stock awards of $10 million was recorded for the six months ended June 30, 2022 and $8 million was recorded for the six months ended June 30, 2021. Included in compensation expense for the first six months of 2022 was $3 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $27 million of unrecognized compensation costs related to restricted stock awards at June 30, 2022 that are expected to be recognized over the remaining requisite service periods that extend predominately through the first quarter of 2026.
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, 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.

15

Note 6 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 June 30, 2022 were as follows:
($ in Thousands)Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Fair Value
AFS investment securities
U. S. Treasury securities$124,365 $— $(11,256)$113,109 
Agency securities15,000 — (1,041)13,959 
Obligations of state and political subdivisions (municipal securities)361,712 648 (3,518)358,842 
Residential mortgage-related securities
FNMA / FHLMC1,959,641 547 (148,585)1,811,603 
GNMA87,779 — (1,542)86,238 
Commercial mortgage-related securities
FNMA / FHLMC19,207 — (601)18,606 
GNMA108,153 — (2,473)105,680 
Asset backed securities
FFELP168,357 — (7,092)161,264 
SBA5,287 40 (45)5,281 
Other debt securities3,000 — (71)2,929 
Total AFS investment securities$2,852,501 $1,234 $(176,224)$2,677,511 
HTM investment securities
U. S. Treasury securities$998 $— $(44)$955 
Obligations of state and political subdivisions (municipal securities)1,717,627 4,002 (161,116)1,560,514 
Residential mortgage-related securities
FNMA / FHLMC967,421 34,108 (125,444)876,085 
GNMA42,248 37 (1,637)40,649 
Private-label375,638 12,693 (54,490)333,841 
Commercial mortgage-related securities
FNMA/FHLMC762,086 16,835 (131,851)647,070 
GNMA79,250 799 (4,970)75,079 
Total HTM investment securities$3,945,269 $68,474 $(479,551)$3,534,192 
During the first quarter of 2022, the Corporation redesignated approximately $1.6 billion of mortgage-related securities from AFS to HTM. The reclassification of these investment securities was accounted for at fair value. Management elected to transfer these investment securities as the Corporation has the positive intent and ability to hold these investment securities to maturity. See Note 16 for additional information on the unrealized losses on investment securities transferred from AFS to HTM.

16

The amortized cost and fair values of AFS and HTM securities at December 31, 2021 were as follows:
($ in Thousands)Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Fair Value
AFS investment securities
U. S. Treasury securities$124,291 $— $(1,334)$122,957 
Agency securities15,000 — (103)14,897 
Obligations of state and political subdivisions (municipal securities)381,517 18,940 — 400,457 
Residential mortgage-related securities
FNMA / FHLMC2,709,399 3,729 (21,249)2,691,879 
GNMA66,189 1,591 — 67,780 
Private-label332,028 31 (2,335)329,724 
Commercial mortgage-related securities
FNMA / FHLMC357,240 2,686 (9,302)350,623 
GNMA165,439 1,360 — 166,799 
Asset backed securities
FFELP177,974 475 (1,123)177,325 
SBA6,594 39 (54)6,580 
Other debt securities3,000 — (6)2,994 
Total AFS investment securities$4,338,671 $28,850 $(35,506)$4,332,015 
HTM investment securities
U. S. Treasury securities$1,000 $$— $1,001 
Obligations of state and political subdivisions (municipal securities)1,628,759 113,179 (1,951)1,739,988 
Residential mortgage-related securities
FNMA / FHLMC34,347 1,792 — 36,139 
GNMA48,053 1,578 — 49,631 
Commercial mortgage-related securities
FNMA / FHLMC425,937 122 (6,659)419,400 
GNMA100,907 1,799 (200)102,506 
 Total HTM investment securities$2,239,003 $118,471 $(8,809)$2,348,664 
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of AFS and HTM securities at June 30, 2022, are shown below:
 AFSHTM
($ in Thousands)Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Due in one year or less$6,905 $6,895 $15,582 $15,627 
Due after one year through five years98,473 94,572 34,915 35,027 
Due after five years through ten years361,344 350,609 169,413 167,713 
Due after ten years37,355 36,762 1,498,715 1,343,101 
Total debt securities504,077 488,839 1,718,625 1,561,468 
Residential mortgage-related securities
FNMA / FHLMC1,959,641 1,811,603 967,421 876,085 
GNMA87,779 86,238 42,248 40,649 
Private-label— — 375,638 333,841 
Commercial mortgage-related securities
FNMA / FHLMC19,207 18,606 762,086 647,070 
GNMA108,153 105,680 79,250 75,079 
Asset backed securities
FFELP 168,357 161,264 — — 
SBA5,287 5,281 — — 
Total investment securities$2,852,501 $2,677,511 $3,945,269 $3,534,192 
Ratio of fair value to amortized cost93.9 %89.6 %
17

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 June 30, 2022:
($ in Thousands)AAAAAANot RatedTotal
U. S. Treasury securities$998 $— $— $— $998 
Obligations of state and political subdivisions (municipal securities)799,925 908,098 8,710 894 1,717,627 
Residential mortgage-related securities
FNMA / FHLMC967,421 — — — 967,421 
GNMA42,248 — — — 42,248 
Private-label375,638 — — — 375,638 
Commercial mortgage-related securities
FNMA / FHLMC762,086 — — — 762,086 
GNMA 79,250 — — — 79,250 
Total HTM securities$3,027,567 $908,098 $8,710 $894 $3,945,269 
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2021:
($ in Thousands)AAAAAANot RatedTotal
U. S. Treasury securities$1,000 $— $— $— $1,000 
Obligations of state and political subdivisions (municipal securities)702,399 914,591 10,873 896 1,628,759 
Residential mortgage-related securities
FNMA / FHLMC34,347 — — — 34,347 
GNMA48,053 — — — 48,053 
Commercial mortgage-related securities
FNMA / FHLMC425,937 — — — 425,937 
GNMA 100,907 — — — 100,907 
Total HTM securities$1,312,642 $914,591 $10,873 $896 $2,239,003 
Investment securities gains (losses), net includes proceeds from the sale of AFS investment securities. The proceeds from the sale of AFS investment securities for the three and six months ended June 30, 2022 and 2021, are shown below:
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Gross gains on AFS securities$— $386 $21 $421 
Gross (losses) on AFS securities(8)(362)(8)(437)
Investment securities gains (losses), net$(8)$24 $12 $(16)
Proceeds from sales of AFS investment securities$327 $107,412 $1,061 $158,708 
During the second quarter of 2021, the Corporation sold $107 million of lower yielding FFELP student loan asset backed securities at an immaterial gain and reinvested the proceeds into higher yielding mortgage backed securities. During the first quarter of 2021, the Corporation sold $51 million of lower yielding U.S. Treasury and Agency securities at an immaterial loss to take advantage of the steeper yield curve by reinvesting the proceeds into similar but higher yielding, longer duration securities.
Investment securities with a carrying value of $2.6 billion and $2.3 billion at June 30, 2022 and December 31, 2021, respectively, were pledged to secure certain deposits or for other purposes.
Accrued interest receivable on HTM securities totaled $18 million and $15 million at June 30, 2022 and December 31, 2021, respectively. Accrued interest receivable on AFS securities totaled $7 million and $9 million at June 30, 2022 and December 31, 2021, 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 June 30, 2022 and 2021.
A security is considered past due once it is 30 days past due under the terms of the agreement. At both June 30, 2022 and December 31, 2021, the Corporation had no past due HTM securities.

The allowance for credit losses on HTM securities was approximately $63,000 at June 30, 2022 and approximately $55,000 at December 31, 2021, 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, as a result, no allowance for credit losses has been recorded related to these securities.

18

The following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at June 30, 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$(10,141)$104,289 $(1,115)$8,820 $(11,256)$113,109 
Agency securities(1,041)13,959 — — — (1,041)13,959 
Obligations of state and political subdivisions (municipal securities)373 (3,518)224,804 — — — (3,518)224,804 
Residential mortgage-related securities
FNMA / FHLMC95 (125,142)1,554,774 (23,443)222,626 (148,585)1,777,400 
GNMA17 (1,542)86,238 — — — (1,542)86,238 
Commercial mortgage-related securities
FNMA / FHLMC(601)18,606 — — — (601)18,606 
GNMA35 (2,473)105,680 — — — (2,473)105,680 
Asset backed securities
FFELP(2,905)72,610 (4,187)88,655 (7,092)161,264 
SBA— — — (45)2,456 (45)2,456 
Other debt securities(71)2,929 — — — (71)2,929 
Total536 $(147,433)$2,183,889 26 $(28,791)$322,556 $(176,224)$2,506,446 
HTM investment securities
U.S. Treasury securities$(44)$955 — $— $— $(44)$955 
Obligations of state and political subdivisions (municipal securities)717 (156,757)1,127,009 (4,359)11,242 (161,116)1,138,251 
Residential mortgage-related securities
FNMA / FHLMC81 (125,444)872,561 — — — (125,444)872,561 
GNMA74 (1,637)40,113 — — — (1,637)40,113 
Private-label18 (54,490)333,841 — — — (54,490)333,841 
 Commercial mortgage-related securities
FNMA / FHLMC15 (119,046)313,359 (12,804)68,980 (131,851)382,339 
GNMA33 (4,970)339,810 — — — (4,970)339,810 
Total939 $(462,387)$3,027,647 16 $(17,163)$80,222 $(479,551)$3,107,869 
19

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, 2021:
 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$(1,334)$122,957 — $— $— $(1,334)$122,957 
Agency securities(103)14,897 — — — (103)14,897 
Residential mortgage-related securities
FNMA / FHLMC74 (21,249)2,172,837 — — — (21,249)2,172,837 
Private-label12 (2,335)248,617 — — — (2,335)248,617 
FNMA / FHLMC commercial mortgage-related securities19 (9,302)328,568 — — — (9,302)328,568 
Asset backed securities
FFELP(256)64,282 (867)62,576 (1,123)126,858 
SBA— — — (54)3,902 (54)3,902 
Other debt securities(6)2,994 — — — (6)2,994 
Total120 $(34,586)$2,955,152 17 $(920)$66,478 $(35,506)$3,021,630 
HTM investment securities
Obligations of state and political subdivisions (municipal securities)49 $(1,951)$112,038 — $— $— $(1,951)$112,038 
Commercial mortgage-related securities
FNMA/FHLMC18 (6,272)388,072 (387)10,775 (6,659)398,847 
GNMA(200)33,468 — — — (200)33,468 
Total72 $(8,422)$533,577 $(387)$10,775 $(8,809)$544,352 
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 June 30, 2022 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 $151 million and $82 million at June 30, 2022 and December 31, 2021, respectively. The Corporation had Federal Reserve Bank stock of $87 million at both June 30, 2022 and December 31, 2021. Accrued interest receivable on FHLB stock totaled $1 million and approximately $975,000 at June 30, 2022 and December 31, 2021, respectively. There was no accrued interest receivable on Federal Reserve Bank stock at both June 30, 2022 and December 31, 2021. Accrued interest receivable on both FHLB stock and Federal Reserve Bank stock is included in interest receivable on the consolidated balance sheets.
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 June 30, 2022 and December 31, 2021, the Corporation had equity securities with readily determinable fair values of $6 million and $5 million, respectively.
Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values, which primarily consists of approximately 78,000 Visa Class B restricted shares, was carried at $14 million at both June 30, 2022 and December 31, 2021.
20

Note 7 Loans
The period end loan composition was as follows:
($ in Thousands)Jun 30, 2022Dec 31, 2021
PPP$9,514 $66,070 
Asset-based lending & equipment finance(a)
263,044 178,027 
Commercial and industrial8,984,127 8,208,289 
Commercial real estate — owner occupied928,152 971,326 
Commercial and business lending10,184,836 9,423,711 
Commercial real estate — investor4,790,241 4,384,569 
Real estate construction1,775,648 1,808,976 
Commercial real estate lending6,565,889 6,193,545 
Total commercial16,750,726 15,617,256 
Residential mortgage8,002,943 7,567,310 
Auto finance847,969 143,045 
Home equity592,843 595,615 
Other consumer300,217 301,723 
Total consumer9,743,972 8,607,693 
Total loans$26,494,698 $24,224,949 
(a) Dec 31, 2021 does not include equipment finance.

Accrued interest receivable on loans totaled $68 million at June 30, 2022, and $55 million at December 31, 2021, 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 totaled approximately $44,000 and $139,000 for the three and six months ended June 30, 2022, respectively, and approximately $140,000 and $238,000 for the three and six months ended June 30, 2021, respectively.

21

The following table presents commercial and consumer loans by credit quality indicator by vintage year at June 30, 2022:
Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost BasisYTD 20222021202020192018PriorTotal
PPP:(b)
Risk rating:
Pass$— $— $49 $8,527 $891 $— $— $— $9,467 
Potential Problem— — 47 — — — — — 47 
PPP$— $— $96 $8,527 $891 $— $— $— $9,514 
Asset-based lending & equipment finance:
Risk rating:
Pass$— $19,968 $77,441 $100,349 $44,012 $977 $192 $$242,947 
Special Mention— — — — 285 — — — 285 
Potential Problem— 1,563 1,500 — 16,750 — — — 19,813 
Asset-based lending & equipment finance$— $21,531 $78,941 $100,349 $61,047 $977 $192 $$263,044 
Commercial and industrial:
Risk rating:
Pass$— $2,252,288 $1,499,191 $2,520,309 $695,696 $772,615 $541,349 $542,828 $8,824,277 
Special Mention— 16,663 1,500 5,242 17,308 — — 33,509 74,222 
Potential Problem71 10,237 17,655 1,312 3,751 44,715 175 6,940 84,785 
Nonaccrual— — — — 843 — — — 843 
Commercial and industrial$71 $2,279,187 $1,518,346 $2,526,863 $717,599 $817,331 $541,524 $583,277 $8,984,127 
Commercial real estate - owner occupied:
Risk rating:
Pass$— $6,344 $57,860 $251,874 $170,340 $173,189 $95,730 $126,926 $882,263 
Special Mention— — — — 7,260 — — — 7,260 
Potential Problem— 211 898 8,779 3,752 9,073 5,282 10,634 38,628 
Commercial real estate - owner occupied$— $6,555 $58,757 $260,653 $181,352 $182,262 $101,012 $137,560 $928,152 
Commercial and business lending:
Risk rating:
Pass$— $2,278,600 $1,634,541 $2,881,059 $910,939 $946,782 $637,271 $669,762 $9,958,954 
Special Mention— 16,663 1,500 5,242 24,853 — — 33,509 81,767 
Potential Problem71 12,010 20,100 10,091 24,253 53,788 5,457 17,574 143,273 
Nonaccrual— — — — 843 — — — 843 
Commercial and business lending$71 $2,307,273 $1,656,141 $2,896,392 $960,888 $1,000,570 $642,728 $720,844 $10,184,836 
Commercial real estate - investor:
Risk rating:
Pass$38,623 $91,473 $1,069,896 $1,488,158 $731,756 $569,142 $274,865 $294,879 $4,520,168 
Special Mention— — — 69,497 — 20,906 — 212 90,615 
Potential Problem— — 267 48,237 28,728 25,497 18,746 11,161 132,635 
Nonaccrual— — 814 37,922 7,642 444 — — 46,823 
Commercial real estate - investor$38,623 $91,473 $1,070,977 $1,643,814 $768,126 $615,989 $293,611 $306,252 $4,790,241 
Real estate construction:
Risk rating:
Pass$— $27,288 $263,216 $962,486 $375,197 $65,237 $23,355 $11,039 $1,727,819 
Special Mention— — — 941 11,929 34,274 — — 47,144 
Potential Problem— — — 82 — — — — 82 
Nonaccrual— — — — — — — 604 604 
Real estate construction$— $27,288 $263,216 $963,509 $387,126 $99,511 $23,355 $11,643 $1,775,648 
22

Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost BasisYTD 20222021202020192018PriorTotal
Commercial real estate lending:
Risk rating:
Pass$38,623 $118,762 $1,333,112 $2,450,644 $1,106,953 $634,379 $298,220 $305,917 $6,247,987 
Special Mention— — — 70,438 11,929 55,180 — 212 137,758 
Potential Problem— — 267 48,318 28,728 25,497 18,746 11,161 132,717 
Nonaccrual— — 814 37,922 7,642 444 — 604 47,427 
Commercial real estate lending$38,623 $118,762 $1,334,193 $2,607,322 $1,155,252 $715,500 $316,966 $317,895 $6,565,889 
Total commercial:
Risk rating:
Pass$38,623 $2,397,362 $2,967,653 $5,331,703 $2,017,892 $1,581,161 $935,492 $975,679 $16,206,941 
Special Mention— 16,663 1,500 75,680 36,782 55,180 — 33,721 219,525 
Potential Problem71 12,010 20,367 58,409 52,981 79,285 24,203 28,735 275,990 
Nonaccrual— — 814 37,922 8,485 444 — 604 48,270 
Total commercial$38,694 $2,426,035 $2,990,334 $5,503,714 $2,116,140 $1,716,070 $959,695 $1,038,739 $16,750,726 
Residential mortgage:
Risk rating:
Pass$— $— $825,055 $1,959,667 $1,789,114 $865,412 $389,154 $2,118,258 $7,946,661 
Special Mention— — — — 99 — — 46 145 
Potential Problem— — 330 462 96 754 633 1,022 3,297 
Nonaccrual— — 3,839 1,925 3,497 3,928 6,295 33,355 52,840 
Residential mortgage$— $— $829,224 $1,962,054 $1,792,807 $870,095 $396,082 $2,152,682 $8,002,943 
Auto finance:
Risk rating:
Pass$— $— $719,132 $125,195 $476 $1,904 $760 $179 $847,646 
Special Mention— — 130 140 — — — — 271 
Nonaccrual— — — 21 — 21 11 — 53 
Auto finance$— $— $719,263 $125,356 $476 $1,925 $771 $179 $847,969 
Home equity:
Risk rating:
Pass$5,461 $493,282 $9,466 $3,966 $1,675 $6,664 $7,840 $62,133 $585,026 
Special Mention109 65 — — 33 26 39 366 529 
Potential Problem— — — — — 35 146 188 
Nonaccrual759 — 15 68 165 346 6,497 7,100 
Home equity$6,328 $493,356 $9,466 $3,981 $1,776 $6,890 $8,232 $69,143 $592,843 
Other consumer:
Risk rating:
Pass$111 $190,483 $4,065 $6,704 $3,204 $1,786 $307 $93,134 $299,685 
Special Mention430 — 18 — — — 449 
Nonaccrual15 14 — — 29 27 83 
Other consumer$127 $190,927 $4,065 $6,723 $3,233 $1,795 $312 $93,162 $300,217 
Total consumer:
Risk rating:
Pass$5,572 $683,766 $1,557,718 $2,095,532 $1,794,469 $875,766 $398,061 $2,273,705 $9,679,017 
Special Mention109 495 130 159 131 26 39 413 1,394 
Potential Problem— — 330 462 96 789 640 1,168 3,486 
Nonaccrual774 22 3,839 1,961 3,594 4,123 6,657 39,880 60,075 
Total consumer$6,455 $684,283 $1,562,017 $2,098,113 $1,798,292 $880,705 $405,397 $2,315,166 $9,743,972 
Total loans:
Risk rating:
Pass$44,195 $3,081,128 $4,525,371 $7,427,234 $3,812,361 $2,456,927 $1,333,552 $3,249,384 $25,885,958 
Special Mention109 17,158 1,630 75,838 36,913 55,206 39 34,134 220,919 
Potential Problem71 12,010 20,697 58,871 53,077 80,074 24,843 29,903 279,475 
Nonaccrual774 22 4,653 39,883 12,079 4,567 6,657 40,484 108,345 
Total loans$45,149 $3,110,318 $4,552,351 $7,601,827 $3,914,431 $2,596,775 $1,365,091 $3,353,905 $26,494,698 
(a) Revolving loans converted to term loans are also reported in their year of origination.
(b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans.


23

The following table presents commercial and consumer loans by credit quality indicator by vintage year at December 31, 2021:
Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost Basis20212020201920182017PriorTotal
PPP:(b)
Risk rating:
Pass$— $— $44,921 $18,610 $— $— $— $— $63,531 
Special Mention— — 212 281 — — — — 493 
Potential Problem— — 2,000 — — — — — 2,000 
Nonaccrual— — — 46 — — — — 46 
PPP$— $— $47,134 $18,936 $— $— $— $— $66,070 
Commercial and industrial:(c)
Risk rating:
Pass$2,084 $2,371,605 $2,631,753 $852,758 $986,300 $710,491 $177,568 $493,876 $8,224,351 
Special Mention— 7,068 5,900 1,695 — — — 2,811 17,474 
Potential Problem2,706 26,387 23,415 19,960 46,296 20,924 104 1,172 138,258 
Nonaccrual76 — 5,996 161 52 24 — — 6,233 
Commercial and industrial$4,867 $2,405,059 $2,667,064 $874,575 $1,032,647 $731,439 $177,671 $497,860 $8,386,316 
Commercial real estate - owner occupied:
Risk rating:
Pass$10,092 $30,869 $261,418 $178,424 $187,073 $110,169 $54,538 $117,011 $939,503 
Special Mention— 226 — 4,628 — — — 245 5,100 
Potential Problem— 526 5,953 4,721 10,047 727 2,204 2,546 26,723 
Commercial real estate - owner occupied$10,092 $31,621 $267,371 $187,773 $197,120 $110,896 $56,742 $119,802 $971,326 
Commercial and business lending:
Risk rating:
Pass$12,176 $2,402,474 $2,938,092 $1,049,792 $1,173,373 $820,660 $232,106 $610,887 $9,227,385 
Special Mention— 7,294 6,112 6,604 — — — 3,056 23,066 
Potential Problem2,706 26,913 31,368 24,681 56,343 21,651 2,307 3,718 166,981 
Nonaccrual76 — 5,996 207 52 24 — — 6,279 
Commercial and business lending$14,958 $2,436,680 $2,981,569 $1,081,284 $1,229,767 $842,335 $234,414 $617,662 $9,423,711 
Commercial real estate - investor:
Risk rating:
Pass$37,430 $105,521 $1,650,936 $685,423 $867,606 $414,079 $139,320 $230,452 $4,093,337 
Special Mention— — 57,163 27,384 33,016 72 — 6,781 124,416 
Potential Problem— — 21,309 9,860 22,243 34,591 3,564 14,573 106,138 
Nonaccrual— — 45,502 8,158 6,820 — — 197 60,677 
Commercial real estate - investor$37,430 $105,521 $1,774,910 $730,825 $929,685 $448,741 $142,883 $252,003 $4,384,569 
Real estate construction:
Risk rating:
Pass$— $31,773 $843,664 $614,469 $204,337 $48,647 $2,229 $12,212 $1,757,331 
Special Mention— — 2,203 11,929 — 15,885 41 30,060 
Potential Problem— — 37 120 21,251 — — — 21,408 
Nonaccrual— — — — — — — 177 177 
Real estate construction$— $31,773 $845,903 $626,518 $225,588 $64,532 $2,270 $12,392 $1,808,976 
Commercial real estate lending:
Risk rating:
Pass$37,430 $137,294 $2,494,600 $1,299,893 $1,071,943 $462,726 $141,549 $242,664 $5,850,668 
Special Mention— — 59,366 39,313 33,016 15,957 41 6,784 154,476 
Potential Problem— — 21,345 9,980 43,494 34,591 3,564 14,573 127,546 
Nonaccrual— — 45,502 8,158 6,820 — — 374 60,855 
Commercial real estate lending$37,430 $137,294 $2,620,814 $1,357,343 $1,155,273 $513,273 $145,153 $264,395 $6,193,545 
24

Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)
Rev Loans Converted to Term(a)
Rev Loans Amortized Cost Basis20212020201920182017PriorTotal
Total commercial:
Risk rating:
Pass$49,606 $2,539,768 $5,432,693 $2,349,685 $2,245,316 $1,283,386 $373,655 $853,551 $15,078,053 
Special Mention— 7,294 65,478 45,917 33,016 15,957 41 9,840 177,543 
Potential Problem2,706 26,913 52,713 34,660 99,837 56,241 5,871 18,291 294,527 
Nonaccrual76 — 51,498 8,365 6,872 24 — 374 67,134 
Total commercial$52,388 $2,573,974 $5,602,382 $2,438,627 $2,385,040 $1,355,608 $379,567 $882,057 $15,617,256 
Residential mortgage:
Risk rating:
Pass$— $— $1,771,447 $1,945,029 $974,188 $428,459 $673,447 $1,716,419 $7,508,989 
Special Mention— — — — — 285 — 461 746 
Potential Problem— — 475 332 404 265 81 658 2,214 
Nonaccrual— — 1,993 2,911 4,479 6,224 6,019 33,734 55,362 
Residential mortgage$— $— $1,773,915 $1,948,272 $979,071 $435,233 $679,547 $1,751,272 $7,567,310 
Auto finance:
Risk rating:
Pass$— $— $137,952 $707 $2,675 $1,200 $352 $107 $142,993 
Nonaccrual— — — — 36 15 — — 52 
Auto finance$— $— $137,952 $707 $2,711 $1,216 $352 $107 $143,045 
Home equity:
Risk rating:
Pass$6,728 $498,970 $1,216 $1,401 $7,640 $8,742 $7,660 $61,251 $586,880 
Special Mention133 100 — 102 — — 638 844 
Potential Problem— — — 13 — 146 165 
Nonaccrual925 35 92 211 305 302 6,772 7,726 
Home equity$7,792 $499,104 $1,232 $1,595 $7,856 $9,059 $7,962 $68,807 $595,615 
Other consumer:
Risk rating:
Pass$443 $180,312 $9,297 $4,987 $2,884 $371 $265 $103,075 $301,191 
Special Mention351 — — — — 363 
Nonaccrual120 — 14 — 19 11 170 
Other consumer$456 $180,783 $9,297 $5,005 $2,890 $371 $284 $103,093 $301,723 
Total consumer:
Risk rating:
Pass$7,171 $679,353 $1,919,912 $1,952,124 $987,387 $438,771 $681,725 $1,880,781 $8,540,053 
Special Mention140 451 — 106 285 — 1,106 1,952 
Potential Problem— 481 332 404 277 81 804 2,379 
Nonaccrual931 154 2,003 3,017 4,733 6,545 6,340 40,517 63,309 
Total consumer$8,248 $679,959 $1,922,396 $1,955,579 $992,528 $445,878 $688,145 $1,923,208 $8,607,693 
Total loans:
Risk rating:
Pass$56,777 $3,219,121 $7,352,605 $4,301,809 $3,232,703 $1,722,157 $1,055,380 $2,734,332 $23,618,106 
Special Mention140 7,745 65,478 46,023 33,021 16,241 41 10,946 179,495 
Potential Problem2,713 26,913 53,194 34,992 100,240 56,519 5,952 19,095 296,905 
Nonaccrual1,006 154 53,501 11,382 11,605 6,569 6,340 40,891 130,443 
Total loans$60,636 $3,253,933 $7,524,778 $4,394,206 $3,377,569 $1,801,486 $1,067,713 $2,805,265 $24,224,949 
(a) Revolving loans converted to term loans are also reported in their year of origination.
(b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans.
(c) Includes asset-based lending & equipment finance.

25

Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate policies for ACLL, nonaccrual loans, and charge offs.
For commercial loans, management has determined the pass credit quality indicator to include credits exhibiting acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits performing in accordance with the original contractual terms.
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that warrant specific attention from management. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Accruing TDRs could be pass or special mention, depending on the risk rating on the loan. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, which may jeopardize liquidation of the debt, and are characterized by the distinct possibility the Corporation will sustain some loss if the deficiencies are not corrected. Management has determined commercial loan relationships in nonaccrual status, and commercial and consumer loan relationships with their terms restructured in a TDR, meet the criteria to be individually evaluated. Commercial loans classified as special mention, potential problem, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass credits, which are performing rated credits, are generally reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted.
The following table presents loans by past due status at June 30, 2022:
Accruing
($ in Thousands)Current30-59 Days
Past Due
60-89 Days
Past Due
90+ Days
Past Due
Nonaccrual(a)(b)
Total
PPP$8,039 $1,361 $113 $— $— $9,514 
Asset-based lending & equipment finance263,044 — — — — 263,044 
Commercial and industrial8,982,984 106 61 133 843 8,984,127 
Commercial real estate - owner occupied928,152 — — — — 928,152 
Commercial and business lending10,182,219 1,467 174 133 843 10,184,836 
Commercial real estate - investor4,737,934 5,484 — — 46,823 4,790,241 
Real estate construction1,775,044 — — — 604 1,775,648 
Commercial real estate lending6,512,978 5,484 — — 47,427 6,565,889 
Total commercial16,695,197 6,952 174 133 48,270 16,750,726 
Residential mortgage7,944,365 5,213 102 423 52,840 8,002,943 
Auto finance845,010 2,635 271 — 53 847,969 
Home equity582,782 2,448 514 — 7,100 592,843 
Other consumer297,770 807 557 999 83 300,217 
Total consumer9,669,928 11,104 1,444 1,422 60,075 9,743,972 
Total loans$26,365,125 $18,055 $1,618 $1,555 $108,345 $26,494,698 
(a) Of the total nonaccrual loans, $65 million, or 60%, were current with respect to payment at June 30, 2022.
(b) No interest income was recognized on nonaccrual loans for the three and six months ended June 30, 2022. In addition, there were $15 million of nonaccrual loans for which there was no related ACLL at June 30, 2022.

26

The following table presents loans by past due status at December 31, 2021:
Accruing
($ in Thousands)Current30-59 Days
Past Due
60-89 Days
Past Due
90+ Days 
Past Due
Nonaccrual(a)(b)
Total
PPP$65,941 $40 $43 $— $46 $66,070 
Asset-based lending178,027 — — — — 178,027 
Commercial and industrial(c)
8,201,272 579 54 151 6,233 8,208,289 
Commercial real estate - owner occupied971,163 163 — — — 971,326 
Commercial and business lending9,416,403 781 97 151 6,279 9,423,711 
Commercial real estate - investor4,323,276 142 474 — 60,677 4,384,569 
Real estate construction1,807,178 1,618 — 177 1,808,976 
Commercial real estate lending6,130,454 1,759 477 — 60,855 6,193,545 
Total commercial15,546,857 2,541 573 151 67,134 15,617,256 
Residential mortgage7,505,654 5,500 669 126 55,362 7,567,310 
Auto finance142,982 11 — — 52 143,045 
Home equity584,177 2,867 844 — 7,726 595,615 
Other consumer298,261 1,835 472 986 170 301,723 
Total consumer8,531,074 10,213 1,985 1,111 63,309 8,607,693 
Total loans$24,077,931 $12,754 $2,558 $1,263 $130,443 $24,224,949 
(a) Of the total nonaccrual loans, $84 million, or 65%, were current with respect to payment at December 31, 2021.
(b) No interest income was recognized on nonaccrual loans for the year ended December 31, 2021. In addition, there were $9 million of nonaccrual loans for which there was no related ACLL at December 31, 2021.
(c) Includes equipment finance.

Troubled Debt Restructurings
Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty.
The following table presents nonaccrual and performing restructured loans by loan portfolio:
 Jun 30, 2022Dec 31, 2021
 ($ in Thousands)Performing
Restructured
Loans
Nonaccrual
Restructured
Loans(a)
Performing
Restructured
Loans
Nonaccrual
Restructured
Loans(a)
Commercial and industrial$13,882 $— $8,687 $— 
Commercial real estate — owner occupied421 — 967 — 
Commercial real estate — investor943 4,266 12,866 3,093 
Real estate construction179 43 242 45 
Residential mortgage15,829 16,854 16,316 13,483 
Home equity2,246 1,009 2,648 806 
Other consumer753 — 803 — 
   Total restructured loans$34,253 $22,172 $42,530 $17,426 
(a) Nonaccrual restructured loans have been included within nonaccrual loans.
The Corporation had a recorded investment of $9 million in loans modified as TDRs during the six months ended June 30, 2022, of which $1 million were in accrual status, included in pass or special mention based on their risk rating within the credit quality tables, and $8 million were in nonaccrual within the credit quality tables, pending a sustained period of repayment. The following table provides the number of loans modified in a TDR by loan portfolio, the recorded investment, and unpaid principal balance for the six months ended June 30, 2022 and 2021:
 Six Months Ended June 30, 2022Six Months Ended June 30, 2021
 ($ in Thousands)Number
of
Loans
Recorded
Investment(a)
Unpaid
Principal
Balance(b)
Number
of
Loans
Recorded
Investment(a)
Unpaid
Principal
Balance(b)
Commercial and industrial$275 $275 $128 $129 
Commercial real estate — investor$553 $573 $1,690 $1,690 
Residential mortgage35 8,149 8,315 37 7,424 7,450 
Home equity291 312 566 603 
   Total loans modified 46 $9,267 $9,474 47 $9,808 $9,871 
(a) Represents post-modification outstanding recorded investment.
(b) Represents pre-modification outstanding recorded investment.
Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some
27

combination of these concessions. During the six months ended June 30, 2022, restructured loan modifications of commercial loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of consumer loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the six months ended June 30, 2022.
The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the six months ended June 30, 2022 and 2021, and the recorded investment in these restructured loans as of June 30, 2022 and 2021:
 Six Months Ended June 30, 2022Six Months Ended June 30, 2021
 ($ in Thousands)Number of
Loans
Recorded
Investment
Number of
Loans
Recorded
Investment
Residential mortgage$1,178 $97 
All loans modified in a TDR are individually evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the ACLL.
The Corporation analyzes loans for classification as a probable TDR. This analysis includes identifying customers that are showing possible liquidity issues in the near term without reasonable access to alternative sources of capital. At June 30, 2022, the Corporation had no loans meeting this classification compared to $7 million at December 31, 2021.
Allowance for Credit Losses on Loans
The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The Corporation utilized Moody's baseline forecast, updated during May 2022 and reviewed against the June 2022 forecast for material updates, in the allowance model. The forecast is applied over a 2 year reasonable and supportable period with straight-line reversion to the historical losses over the second year of the period. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 12 for additional information on the change in the allowance for unfunded commitments.

28

The following table presents a summary of the changes in the ACLL by portfolio segment for the six months ended June 30, 2022:
($ in Thousands)Dec 31, 2021Charge offsRecoveriesNet Charge offsProvision for credit lossesJun 30, 2022ACLL / Loans
Allowance for loan losses
PPP$51 $— $— $— $(45)$
Asset-based lending & equipment finance4,182 — — — 450 4,632 
Commercial and industrial85,624 (1,895)3,305 1,410 5,018 92,052 
Commercial real estate — owner occupied11,473 — (1,074)10,406 
Commercial and business lending101,330 (1,895)3,312 1,417 4,349 107,096 
Commercial real estate — investor72,803 — — — (8,412)64,391 
Real estate construction37,643 — 33 33 (1,537)36,139 
Commercial real estate lending110,446 — 33 33 (9,949)100,531 
Total commercial211,776 (1,895)3,346 1,450 (5,600)207,626 
Residential mortgage40,787 (138)646 508 (2,444)38,851 
Auto finance1,999 (60)49 (10)8,440 10,428 
Home equity14,011 (195)971 776 (1,496)13,291 
Other consumer11,441 (1,531)564 (967)100 10,574 
Total consumer68,239 (1,924)2,230 306 4,600 73,145 
Total loans$280,015 $(3,819)$5,576 $1,757 $(1,000)$280,771 
Allowance for unfunded commitments
Asset-based lending & equipment finance$857 $— $— $— $(124)$733 
Commercial and industrial17,601 — — — (2,949)14,652 
Commercial real estate — owner occupied208 — — — (94)114 
Commercial and business lending18,667 — — — (3,167)15,500 
Commercial real estate — investor936 — — — (287)649 
Real estate construction15,586 — — — 901 16,487 
Commercial real estate lending16,522 — — — 614 17,136 
Total commercial35,189 — — — (2,553)32,636 
Home equity2,592 — — — (150)2,441 
Other consumer1,995 — — — (296)1,698 
Total consumer4,587 — — — (447)4,140 
Total loans$39,776 $— $— $— $(3,000)$36,776 
Allowance for credit losses on loans
PPP$51 $— $— $— $(45)$0.06 %
Asset-based lending & equipment finance5,040 — — — 325 5,365 2.04 %
Commercial and industrial103,225 (1,895)3,305 1,410 2,069 106,704 1.19 %
Commercial real estate — owner occupied11,681 — (1,167)10,520 1.13 %
Commercial and business lending119,997 (1,895)3,312 1,417 1,182 122,595 1.20 %
Commercial real estate — investor73,739 — — — (8,699)65,040 1.36 %
Real estate construction53,229 — 33 33 (636)52,627 2.96 %
Commercial real estate lending126,968 — 33 33 (9,335)117,667 1.79 %
Total commercial246,965 (1,895)3,346 1,450 (8,153)240,262 1.43 %
Residential mortgage40,787 (138)646 508 (2,444)38,851 0.49 %
Auto finance1,999 (60)49 (10)8,440 10,428 1.23 %
Home equity16,603 (195)971 776 (1,647)15,732 2.65 %
Other consumer13,436 (1,531)564 (967)(196)12,273 4.09 %
Total consumer72,825 (1,924)2,230 306 4,153 77,284 0.79 %
Total loans$319,791 $(3,819)$5,576 $1,757 $(4,000)$317,547 1.20 %




29

The following table presents a summary of the changes in the ACLL by portfolio segment for the year ended December 31, 2021:
($ in Thousands)Dec 31, 2020Charge offsRecoveriesNet Charge offsProvision for credit lossesDec 31, 2021ACLL / Loans
Allowance for loan losses
PPP$531 $— $— $— $(480)$51 
Asset-based lending2,077 — 412 412 1,693 4,182 
Commercial and industrial(a)
140,716 (21,564)8,152 (13,412)(41,680)85,624 
Commercial real estate — owner occupied11,274 — 120 120 80 11,473 
Commercial and business lending154,598 (21,564)8,684 (12,880)(40,388)101,330 
Commercial real estate — investor93,435 (14,346)3,162 (11,184)(9,448)72,803 
Real estate construction59,193 (5)126 121 (21,672)37,643 
Commercial real estate lending152,629 (14,351)3,288 (11,063)(31,120)110,446 
Total commercial307,226 (35,915)11,972 (23,943)(71,508)211,776 
Residential mortgage42,996 (880)841 (38)(2,170)40,787 
Auto finance174 (22)31 1,816 1,999 
Home equity18,849 (668)2,854 2,186 (7,024)14,011 
Other consumer14,456 (3,168)1,267 (1,901)(1,113)11,441 
Total consumer76,475 (4,738)4,993 256 (8,492)68,239 
Total loans$383,702 $(40,652)$16,965 $(23,687)$(80,000)$280,015 
Allowance for unfunded commitments
Asset-based lending$901 $— $— $— $(43)$857 
Commercial and industrial(a)
21,411 — — — (3,809)17,601 
Commercial real estate — owner occupied266 — — — (58)208 
Commercial and business lending22,577 — — — (3,911)18,667 
Commercial real estate — investor636 — — — 300 936 
Real estate construction18,887 — — — (3,301)15,586 
Commercial real estate lending19,523 — — — (3,001)16,522 
Total commercial42,101 — — — (6,912)35,189 
Home equity3,118 — — — (526)2,592 
Other consumer2,557 — — — (563)1,995 
Total consumer5,675 — — — (1,088)4,587 
Total loans$47,776 $— $— $— $(8,000)$39,776 
Allowance for credit losses on loans
PPP$531 $— $— $— $(480)$51 0.08 %
Asset-based lending2,978 — 412 412 1,649 5,040 2.83 %
Commercial and industrial(a)
162,126 (21,564)8,152 (13,412)(45,490)103,225 1.26 %
Commercial real estate — owner occupied11,539 — 120 120 22 11,681 1.20 %
Commercial and business lending177,175 (21,564)8,684 (12,880)(44,299)119,997 1.27 %
Commercial real estate — investor94,071 (14,346)3,162 (11,184)(9,148)73,739 1.68 %
Real estate construction78,080 (5)126 121 (24,972)53,229 2.94 %
Commercial real estate lending172,152 (14,351)3,288 (11,063)(34,121)126,968 2.05 %
Total commercial349,327 (35,915)11,972 (23,943)(78,419)246,965 1.58 %
Residential mortgage42,996 (880)841 (38)(2,170)40,787 0.54 %
Auto finance174 (22)31 1,816 1,999 1.40 %
Home equity21,967 (668)2,854 2,186 (7,550)16,603 2.79 %
Other consumer17,013 (3,168)1,267 (1,901)(1,676)13,436 4.45 %
Total consumer82,150 (4,738)4,993 256 (9,581)72,825 0.85 %
Total loans$431,478 $(40,652)$16,965 $(23,687)$(88,000)$319,791 1.32 %
(a) Includes equipment finance.
Note 8 Goodwill and Other Intangible Assets
Goodwill
Goodwill is not amortized but is instead subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
30

The Corporation conducted its most recent annual impairment testing in May 2022, utilizing a qualitative assessment. Factors that management considered in this assessment included macroeconomic conditions, industry and market considerations, overall financial performance of the Corporation and each reporting unit (both current and projected), changes in management strategy, and changes in the composition or carrying amount of net assets. In addition, management considered the changes in both the Corporation's common stock price and in the overall bank common stock index (based on the S&P 400 Regional Bank Sub-Industry Index), as well as the Corporation's earnings per common share trend over the past year. Based on these assessments, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There have been no events since the May 2022 impairment test that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2021 or the first six months of 2022.
The Corporation had goodwill of $1.1 billion at both June 30, 2022 and December 31, 2021.
Other Intangible Assets
The Corporation has CDIs and historically had other intangible assets, both of which are amortized. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
($ in Thousands)Six Months Ended June 30, 2022Year Ended Dec 31, 2021
Core deposit intangibles
Gross carrying amount at the beginning of period$88,109 $88,109 
Accumulated amortization(34,422)(30,016)
Net book value$53,687 $58,093 
Amortization during the period$4,405 $8,811 
Other intangibles
Gross carrying amount at the beginning of period$— $2,000 
Reductions due to sale— (1,317)
Accumulated amortization— (683)
Net book value $— $— 
Amortization during the period$— $33 
Mortgage Servicing Rights
The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. On January 1, 2022, the Corporation made the irrevocable election to account for its MSRs under the fair value measurement method, with any change in fair value being recognized through earnings in mortgage banking, net on the consolidated statements of income. MSRs are not traded in active markets. As a result, a cash flow model is used to determine fair value. Key assumptions and estimates, projected prepayment speeds, assumed servicing costs, ancillary income, costs to service delinquent loans, costs of foreclosure, and discount rates with option-adjusted spreads, are used in measuring the fair value of the MSRs asset. These assumptions are considered significant unobservable inputs. See Note 12 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 13 which further discusses fair value measurement relative to the MSRs asset.
A summary of changes in the balance of the MSRs asset under the fair value measurement method for the six months ended June 30, 2022 is as follows:
($ in Thousands)Six Months Ended June 30, 2022
Mortgage servicing rights
Mortgage servicing rights at beginning of period$54,862 
Cumulative effect of accounting methodology change2,296 
Balance at beginning of period, adjusted$57,158 
Additions5,231 
Paydowns(5,220)
Valuation:
Change in fair value model assumptions6,034 
Changes in fair value of asset13,366 
Mortgage servicing rights at end of period$76,570 
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)$6,910,382 
Mortgage servicing rights to servicing portfolio1.11 %
31

Prior to January 1, 2022, the Corporation accounted for its MSRs under the amortization methodology. Under this methodology the Corporation evaluated its MSRs asset for impairment at minimum on a quarterly basis. Impairment was assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fell, prepayment speeds were usually faster and the value of the MSRs asset generally decreased, requiring additional valuation reserve. Conversely, as mortgage interest rates rose, prepayment speeds were usually slower and the value of the MSRs asset generally increased, requiring less valuation reserve. A valuation allowance was established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeded the estimated fair value by stratification. An other-than-temporary impairment (i.e., recoverability was considered remote when considering interest rates and loan pay off activity) was recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance was available) and then against earnings. A direct write-down permanently reduced the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries.
A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance under the amortization method for the year ended December 31, 2021 is as follows:
($ in Thousands)Year Ended Dec 31, 2021
Mortgage servicing rights
Mortgage servicing rights at beginning of period$59,967 
Additions16,151 
Amortization(19,436)
Mortgage servicing rights at end of period$56,682 
Valuation allowance at beginning of period$(18,006)
Recoveries, net16,186 
Valuation allowance at end of period$(1,820)
Mortgage servicing rights, net$54,862 
Fair value of mortgage servicing rights$57,259 
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)$6,994,834 
Mortgage servicing rights, net to servicing portfolio0.78 %
Mortgage servicing rights expense(a)
$3,250 
(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income.
The projections of amortization expense for CDIs and decay for MSRs are based on existing asset balances, the current interest rate environment, and prepayment speeds as of June 30, 2022. The actual expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets:
($ in Thousands)Core Deposit IntangiblesMortgage Servicing Rights
Six months ended December 31, 2022$4,405 $6,511 
20238,811 12,413 
20248,811 10,884 
20258,811 9,535 
20268,811 8,275 
20278,811 7,198 
Beyond 20275,227 21,752 
Total Estimated Amortization Expense$53,687 $76,570 
32

Note 9 Short and Long-Term Funding
The following table presents the components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year):
($ in Thousands)Jun 30, 2022Dec 31, 2021
Short-Term Funding
Federal funds purchased$409,180 $120 
Securities sold under agreements to repurchase273,659 319,412 
Federal funds purchased and securities sold under agreements to repurchase682,839 319,532 
Commercial paper22,781 34,730 
Total short-term funding$705,620 $354,262 
Long-Term Funding
Corporation subordinated notes, at par, due 2025$250,000 $250,000 
Capitalized costs(691)(839)
Finance leases511 163 
Total long-term funding249,820 249,324 
   Total short and long-term funding, excluding FHLB advances$955,440 $603,587 
FHLB Advances
Short-term FHLB advances$2,045,000 $— 
Long-term FHLB advances1,213,039 1,621,047 
Total FHLB advances3,258,039 1,621,047 
Total short and long-term funding$4,213,479 $2,224,633 
Securities Sold Under Agreements to Repurchase
The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities).
The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. The fair value of securities pledged to secure repurchase agreements may decline. At June 30, 2022, the Corporation had pledged securities valued at 133% of the gross outstanding balance of repurchase agreements to manage this risk.
The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 are presented in the following table:
Overnight and Continuous
($ in Thousands)Jun 30, 2022Dec 31, 2021
Repurchase agreements
Agency mortgage-related securities$273,659 $319,412 
Long-Term Funding
Subordinated Notes 
In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount.
Finance Leases
Finance leases are used in conjunction with branch operations. See Note 18 for additional disclosure regarding the Corporation’s leases.
FHLB Advances
The Corporation prepaid $400 million in long-term FHLB advances during the first quarter of 2022 with no prepayment fee.
33

Note 10 Derivative and Hedging Activities
The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation's known or expected cash receipts and its known or expected cash payments principally related to the Corporation's assets.
The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, contracts generally contain language outlining collateral pledging requirements for each counterparty. For non-centrally cleared derivatives, collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. Securities and cash are often pledged as collateral. The Corporation pledged $73 million and $71 million of investment securities as collateral at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022, the Corporation posted immaterial required cash collateral compared to $11 million at December 31, 2021.
Federal regulations require the Corporation to clear all LIBOR and compound SOFR interest rate swaps through a clearing house, if possible. For derivatives cleared through central clearing houses, the variation margin payments are legally characterized as daily settlements of the derivative rather than collateral. The Corporation's clearing agent for interest rate derivative contracts that are centrally cleared through the Chicago Mercantile Exchange (CME) and the London Clearing House (LCH) settles the variation margin daily. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Depending on the net position, the fair value is reported in other assets or accrued expenses and other liabilities on the consolidated balance sheets. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument.
Derivatives to Accommodate Customer Needs
The Corporation facilitates customer borrowing activity by entering into various derivative contracts which are designated as free standing derivative contracts. Free standing derivative products are entered into primarily for the benefit of commercial customers seeking to manage their exposures to interest rate risk, foreign currency, and until early 2022, commodity prices. As of the end of the first quarter of 2022, the Corporation no longer had any outstanding commodity contracts. These derivative contracts are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and, therefore, do not qualify for hedge accounting treatment. Such derivative contracts are carried at fair value in other assets and accrued expenses and other liabilities on the consolidated balance sheets with changes in the fair value recorded as a component of capital markets, net, and typically include interest rate-related instruments (swaps and caps), foreign currency exchange forwards, and until the end of the first quarter of 2022, commodity contracts. See Note 11 for additional information and disclosures on balance sheet offsetting.
Interest rate-related instruments: The Corporation provides interest rate risk management services to commercial customers, primarily forward interest rate swaps and caps. The Corporation’s market risk from unfavorable movements in interest rates related to these derivative contracts is generally economically hedged by concurrently entering into offsetting derivative contracts. The offsetting derivative contracts have identical notional values, terms, and indices.
Foreign currency exchange forwards: The Corporation provides foreign currency exchange services to customers, primarily forward contracts. The Corporation's customers enter into a foreign currency exchange forward with the Corporation as a means for them to mitigate exchange rate risk. The Corporation mitigates its risk by then entering into an offsetting foreign currency exchange derivative contract.
Commodity contracts: As of the end of the first quarter of 2022, the Corporation no longer had any outstanding commodity contracts. Historically, commodity contracts were entered into primarily for the benefit of commercial customers seeking to manage their exposure to fluctuating commodity prices. The Corporation mitigated its risk by then entering into an offsetting commodity derivative contract.
34

Mortgage Derivatives
Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments on residential mortgage loans and TBA securities are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net on the consolidated statements of income.
Interest rate-related instruments for MSRs hedge: The fair value of the Corporation's MSRs asset changes in response to changes in primary mortgage loan rates and other assumptions. To mitigate the earnings volatility caused by changes in the fair value of MSRs, the Corporation designates certain financial instruments as an economic hedge. Changes in the fair value of these instruments are generally expected to partially offset changes in the fair value of MSRs and are recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net on the consolidated statements of income.
The following table presents the total notional amounts and gross fair values of the Corporation’s derivatives, as well as the balance sheet netting adjustments as of June 30, 2022 and December 31, 2021. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of June 30, 2022 and December 31, 2021. The resulting net derivative asset and liability fair values are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets.
 Jun 30, 2022Dec 31, 2021
AssetLiabilityAssetLiability
($ in Thousands)Notional AmountFair ValueNotional AmountFair ValueNotional AmountFair ValueNotional AmountFair Value
Not designated as hedging instruments
Interest rate-related instruments$4,116,939 $34,184 $4,116,939 $173,955 $3,874,781 $83,626 $3,874,781 $26,231 
Foreign currency exchange forwards509,404 4,190 498,773 3,764 490,057 5,490 478,745 5,441 
Commodity contracts— — — — 3,894 1,264 3,910 1,248 
Mortgage banking(a)(b)
76,824 1,033 105,000 113 133,990 2,647 245,016 — 
Gross derivatives before netting$39,407 $177,833 $93,026 $32,921 
Less: Legally enforceable master netting agreements4,369 4,369 2,143 2,143 
Less: Cash collateral pledged/received22,756 — 1,313 11,357 
Total derivative instruments, after netting$12,281 $173,464 $89,570 $19,421 
(a) The notional amount of the mortgage derivative asset includes interest rate lock commitments, while the notional amount of the mortgage derivative liability includes forward commitments.
(b) At December 31, 2021, the mortgage derivative asset included approximately $30,000 of forward commitments fair value.
The Corporation terminated its $500 million fair value hedge during the fourth quarter of 2019. At June 30, 2022, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was $362 million and is included in loans on the consolidated balance sheets. This amount includes $2 million of hedging adjustments on the discontinued hedging relationships.
The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income for the three and six months ended June 30, 2022 and 2021:
Location and Amount of Gain or (Loss) Recognized on the Consolidated Statements of Income in
Fair Value and Cash Flow Hedging Relationships
Three months ended Jun 30,Six Months Ended Jun 30,
2022202120222021
($ in Thousands)Interest IncomeInterest Income
Total amounts of income presented on the consolidated statements of income in which the effects of the fair value hedge is recorded$(129)$(352)$(308)$(837)
The effects of fair value hedging: (Loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedged items (129)(352)(308)(837)
35

The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income for the three and six months ended June 30, 2022 and 2021:
Consolidated Statements of Income Category of Gain / (Loss) 
Recognized in Income
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Derivative Instruments
Interest rate-related instruments — customer and mirror, netCapital markets, net$$(950)$581 $1,989 
Interest rate-related instruments — MSRs hedgeMortgage banking, net(5,346)— (9,012)— 
Foreign currency exchange forwardsCapital markets, net254 (25)377 118 
Commodity contractsCapital markets, net— (512)(16)(1,132)
Interest rate lock commitments (mortgage)Mortgage banking, net1,210 (373)(1,631)(3,081)
Forward commitments (mortgage)Mortgage banking, net4,885 4,685 128 (1,616)
Note 11 Balance Sheet Offsetting
Interest Rate-Related Instruments, Commodity Contracts, and Foreign Exchange Forwards (“Interest, Commodity, and Foreign Exchange Agreements”)
The Corporation enters into interest rate-related instruments to facilitate the interest rate risk management strategies of commercial customers and foreign exchange forwards to manage customers' exposure to fluctuating foreign exchange rates. The Corporation mitigates these risks by entering into equal and offsetting agreements with highly rated third-party financial institutions. Historically, the Corporation entered into commodity contracts to manage commercial customers' exposure to fluctuating commodity prices. As of the end of the first quarter of 2022, the Corporation no longer had any outstanding commodity contracts. The Corporation is party to master netting arrangements with its financial institution counterparties that create single net settlements of all legal claims or obligations to pay or receive the net amount of settlement of the individual interest and foreign exchange agreements. Collateral, usually in the form of investment securities and cash, is posted by the counterparty with net liability positions in accordance with contract thresholds. Derivatives subject to a legally enforceable master netting agreement are reported with assets and liabilities offset resulting in a net position which is further offset by any cash and investment securities collateral, and is reported in other assets and accrued expenses and other liabilities, on the face of the consolidated balance sheets. See Note 10 for additional information on the Corporation’s derivative and hedging activities.
The following table presents the interest rate and foreign exchange assets and liabilities subject to an enforceable master netting arrangement as of June 30, 2022 and interest rate, commodity, and foreign exchange assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2021. The interest and foreign exchange agreements the Corporation has with its commercial customers and the commodity agreements the Corporation had with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from this table:
 Gross Amounts RecognizedGross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance SheetsNet Amounts Presented on the Consolidated Balance Sheets
 ($ in Thousands)Derivative
Liabilities Offset
Cash Collateral Received
Derivative assets
June 30, 2022$27,214 $(4,369)$(22,756)$89 
December 31, 20213,567 (2,143)(1,313)111 
 Gross Amounts RecognizedGross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance SheetsNet Amounts Presented on the Consolidated Balance Sheets
 ($ in Thousands)Derivative
Assets Offset
Cash Collateral Pledged
Derivative liabilities
June 30, 2022$4,618 $(4,369)$ $249 
December 31, 202115,620 (2,143)(11,357)2,120 
36

Note 12 Commitments, Off-Balance Sheet Arrangements, Legal Proceedings, Regulatory Matters and Operational Matters
The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include lending-related and other commitments (see below) as well as derivative instruments (see Note 10). The following is a summary of lending-related commitments:
($ in Thousands)Jun 30, 2022Dec 31, 2021
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b)
$11,483,648 $10,848,136 
Commercial letters of credit(a)
5,152 5,992 
Standby letters of credit(c)
274,324 248,292 
(a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at June 30, 2022 or December 31, 2021.
(b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10.
(c) The Corporation has established a liability of $3 million and $2 million for June 30, 2022 and December 31, 2021, respectively, as an estimate of the fair value of these financial instruments.
Lending-related Commitments
As a financial services provider, the Corporation routinely enters into commitments to extend credit. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Corporation, with each customer’s creditworthiness evaluated on a case-by-case basis. The commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of those instruments. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Since a significant portion of commitments to extend credit are subject to specific restrictive loan covenants or may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. An allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded commitments (including unfunded loan commitments and letters of credit).
The following table presents a summary of the changes in the allowance for unfunded commitments:
($ in Thousands)Six Months Ended June 30, 2022Year Ended December 31, 2021
Allowance for Unfunded Commitments
Balance at beginning of period$39,776 $47,776 
Provision for unfunded commitments(3,000)(8,000)
Balance at end of period$36,776 $39,776 
Lending-related commitments include commitments to extend credit, commitments to originate residential mortgage loans held for sale, commercial letters of credit, and standby letters of credit. Commitments to extend credit are legally binding agreements to lend to customers at predetermined interest rates, as long as there is no violation of any condition established in the contracts. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments on residential mortgage loans and TBA securities are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 10. Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party.
Other Commitments
The Corporation invests in qualified affordable housing projects, historic projects, new market projects, and opportunity zone funds for the purpose of community reinvestment and obtaining tax credits and other tax benefits. Return on the Corporation's investment in these projects and funds comes in the form of the tax credits and tax losses that pass through to the Corporation, and deferral or elimination of capital gain recognition for tax purposes. The aggregate carrying value of these investments at June 30, 2022 was $250 million, compared to $268 million at December 31, 2021, included in tax credit and other investments on the consolidated balance sheets. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects.
Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to the amortization of
37

investments in qualified affordable housing projects of $16 million for both the six months ended June 30, 2022 and June 30, 2021, and $8 million for both the three months ended June 30, 2022 and June 30, 2021. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $245 million at June 30, 2022 and $262 million at December 31, 2021.
The Corporation’s unfunded equity contributions relating to investments in qualified affordable housing and historic projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled $44 million at June 30, 2022 and $80 million at December 31, 2021.
For the six months ended June 30, 2022 and the year ended December 31, 2021, the Corporation did not record any impairment related to qualified affordable housing investments.
The Corporation has principal investment commitments to provide capital-based financing to private companies through either direct investment in specific companies or through investment funds and partnerships. The timing of future cash requirements to fund such principal investment commitments is generally dependent on the investment cycle, whereby privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, which can vary based on overall market conditions, as well as the nature and type of industry in which the companies operate. The Corporation also invests in loan pools that support CRA loans. The timing of future cash requirements to fund these pools is dependent upon loan demand, which can vary over time. The aggregate carrying value of these investments was $25 million at both June 30, 2022 and December 31, 2021, included in tax credit and other investments on the consolidated balance sheets.
Legal Proceedings
The Corporation is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which involve claims for substantial amounts. Although there can be no assurance as to the ultimate outcomes, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding matters and intends to continue to defend itself vigorously with respect to such legal proceedings. The Corporation will consider settlement of cases when, in management’s judgment, it is in the best interests of the Corporation and its shareholders.
On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available. On a matter by matter basis, an accrual for loss is established for those matters which the Corporation believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, each accrual is adjusted as appropriate to reflect any subsequent developments. Accordingly, management’s estimate will change from time to time, and actual losses may be more or less than the current estimate. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established.
Resolution of legal claims is inherently unpredictable, and in many legal proceedings various factors exacerbate this inherent unpredictability, including where the damages sought are unsubstantiated or indeterminate, it is unclear whether a case brought as a class action will be allowed to proceed on that basis, discovery is not complete, the proceeding is not yet in its final stages, the matters present legal uncertainties, there are significant facts in dispute, there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants), or there is a wide range of potential results.
A lawsuit, Evans et al v. Associated Banc-Corp et al, was filed in the United States District Court for the Eastern District of Wisconsin - Green Bay Division on January 13, 2021 by one current and one former participant in the Associated Banc-Corp 401(k) and Employee Stock Ownership Plan (the “Plan”) as representatives of a putative class. The plaintiffs alleged that Associated Banc-Corp, the Associated Banc-Corp Plan Administrative Committee, and current and past members of such committee during the relevant time period (the “Defendants”) breached their fiduciary duties with respect to the Plan in violation of Employee Retirement Income Security Act of 1974, as amended, by applying an imprudent and inappropriate preference for products associated with Associated Banc-Corp within the Plan, and that the Defendants failed to monitor or control the recordkeeping expenses paid to Associated Trust Company, N.A. On March 18, 2021, the Defendants filed a motion to dismiss. On April 8, 2021, the plaintiffs filed an amended complaint which dropped the record keeping claim, added Associated Trust Company N.A. and Kellogg Asset Management, LLC as defendants, and alleged various breaches of fiduciary duty related to the selection and monitoring of, and the fees charged by, proprietary collective investment trusts. The plaintiffs, in part, seek an accounting and disgorgement of certain profits, as well as certain equitable restitution and equitable monetary relief. The Corporation intends to vigorously defend against this lawsuit. It is not possible for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss at this time with respect to this lawsuit.
38

Regulatory Matters
A variety of consumer products, including mortgage and deposit products, and certain fees and charges related to such products, have come under increased regulatory scrutiny. It is possible that regulatory authorities could bring enforcement actions, including civil money penalties, or take other actions against the Corporation and the Bank in regard to these consumer products. The Bank could also determine of its own accord, or be required by regulators, to refund or otherwise make remediation payments to customers in connection with these products. It is not possible at this time for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss related to such matters.
Operational Matters
In November 2021, we became aware that during several routine purges of old documents, certain documents that were more than seven years old relating to active accounts were inadvertently purged from our electronic database. The active account documents that were inadvertently purged related to (1) certain customer documents obtained as part of bank acquisitions, and (2) certain customer documents that were transferred to a new cold storage system without correct retention coding. Both the acquisitions and the transfer occurred years ago. The majority of the documents inadvertently purged were signature cards. We have undertaken measures to replace (if possible) or otherwise lessen the impact on customers of any inadvertently purged documents. While the impact on the Company of this incident has been immaterial to date, and we are not aware of any material adverse customer impact, it is not possible at this time for management to reasonably estimate the amount of any potential loss related to this incident.
Mortgage Repurchase Reserve
The Corporation sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under the Corporation's usual underwriting procedures, and are most often sold on a nonrecourse basis, primarily to the GSEs. The Corporation’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Corporation may be obligated to repurchase the loan or reimburse the GSEs for losses incurred (collectively, “make whole requests”). The make whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. Additionally, beginning in the third quarter of 2021, qualifying residential mortgage loans guaranteed by U.S. government agencies have been sold into GNMA pools.
As a result of make whole requests, the Corporation has repurchased loans with aggregate principal balances of $3 million and $8 million for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively. There were no loss reimbursement and settlement claims paid in the six months ended June 30, 2022, and approximately $114,000 of such claims were paid for the year ended December 31, 2021. Make whole requests during 2021 and the first six months of 2022 generally arose from loans originated during the period of January 1, 2017 to December 31, 2021. Since January 1, 2017, loans sold totaled $7.4 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of June 30, 2022, $4.6 billion of loans originated since January 1, 2017 remain outstanding.
The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The mortgage repurchase reserve, included in accrued expenses and other liabilities on the consolidated balance sheets, was $1 million at both June 30, 2022 and December 31, 2021.
The Corporation may also sell residential mortgage loans with limited recourse (limited in that the recourse period ends prior to the loan’s maturity, usually after certain time and / or loan paydown criteria have been met), whereby repurchase could be required if the loan had defined delinquency issues during the limited recourse periods. At June 30, 2022 and December 31, 2021, there were $7 million and $10 million, respectively, of residential mortgage loans sold with such recourse risk. There have been limited instances and immaterial historical losses on repurchases for recourse under the limited recourse criteria.
The Corporation has a subordinate position to the FHLB in the credit risk on residential mortgage loans it sold to the FHLB in exchange for a monthly credit enhancement fee. The Corporation has not sold loans to the FHLB with such credit risk retention since February 2005. At June 30, 2022 and December 31, 2021, there were $22 million and $24 million, respectively, of such residential mortgage loans with credit risk recourse, upon which there have been immaterial historical losses to the Corporation.
39

Note 13 Fair Value Measurements
Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept).
The valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis are described in the Fair Value Measurements note in the Corporation’s 2021 Annual Report on Form 10-K. There has been one significant change to the methodologies for assets and liabilities measured at fair value on a recurring basis:
Mortgage Servicing Rights: The Corporation sells residential mortgage loans in the secondary market and typically retains the rights to service the loans sold. Upon sale, a MSRs asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. On January 1, 2022, the Corporation made the irrevocable election to account for its MSRs asset under the fair value measurement method. Under this methodology, changes in the fair value are recognized in earnings as they occur through mortgage banking, net on the consolidated statements of income.
MSRs are not traded in active markets. A cash flow model is used to determine fair value. Key assumptions and estimates, including projected prepayment speeds, assumed servicing costs, ancillary income, costs to service delinquent loans, costs of foreclosure, and discount rates with option-adjusted spreads, used by this model are based on current market sources. Assumptions used to value MSRs are considered significant unobservable inputs. A separate third-party model is used to estimate prepayment speeds based on interest rates, housing turnover rates, estimated loan curtailment, anticipated defaults and other relevant factors. Fair value estimates from outside sources are received periodically to corroborate the results of the valuation model. Due to the nature of the valuation inputs, MSRs are classified within Level 3 of the fair value hierarchy. See Note 8 for additional disclosures about the Corporation's MSRs.

40

The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall:
 ($ in Thousands)Fair Value HierarchyJun 30, 2022Dec 31, 2021
Assets
AFS investment securities
U.S. Treasury securities Level 1$113,109 $122,957 
Agency securitiesLevel 213,959 14,897 
Obligations of state and political subdivisions (municipal securities)Level 2358,842 400,457 
Residential mortgage-related securities
FNMA / FHLMC Level 21,811,603 2,691,879 
GNMA Level 286,238 67,780 
Private-label Level 2— 329,724 
Commercial mortgage-related securities
FNMA / FHLMCLevel 218,606 350,623 
GNMA Level 2105,680 166,799 
Asset backed securities
FFELP Level 2161,264 177,325 
SBALevel 25,281 6,580 
Other debt securities Level 22,929 2,994 
Total AFS investment securities Level 1$113,109 $122,957 
Total AFS investment securities Level 22,564,402 4,209,058 
Equity securities with readily determinable fair values Level 15,502 4,810 
Residential loans held for sale Level 242,676 136,638 
Mortgage servicing rights, net(a)
Level 376,570 N/A
Interest rate-related instruments(b)
 Level 234,184 83,626 
Foreign currency exchange forwards(b)
 Level 24,190 5,490 
Commodity contracts(b)
 Level 2— 1,264 
Interest rate lock commitments to originate residential mortgage loans held for sale Level 3986 2,617 
Forward commitments on residential mortgage loansLevel 3— 30 
Forward commitments on TBA securitiesLevel 347 — 
Liabilities
Interest rate-related instruments(b)
 Level 2$173,955 $26,231 
Foreign currency exchange forwards(b)
 Level 23,764 5,441 
Commodity contracts(b)
 Level 2— 1,248 
Forward commitments on residential mortgage loans Level 3113 — 
(a) MSRs at December 31, 2021 were carried at LOCOM. On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value on a recurring basis.
(b) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the
    same counterparty where there is a legally enforceable master netting agreement in place.
The table below presents a rollforward of the consolidated balance sheets amounts for the six months ended June 30, 2022 and the year ended December 31, 2021, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
($ in Thousands)Interest rate lock commitments to originate residential mortgage loans held for saleForward commitments on residential mortgage loans and TBA securitiesTotal
Balance December 31, 2020$9,624 $2,046 $7,579 
New production53,686 (3,281)56,966 
Closed loans / settlements(53,477)3,740 (57,217)
Other(7,216)(2,535)(4,680)
Change in mortgage derivative(7,007)(2,076)(4,932)
Balance December 31, 2021$2,617 $(30)$2,647 
New production$7,237 $(1,083)$8,320 
Closed loans / settlements637 20,035 (19,398)
Other(9,505)(18,856)9,351 
Change in mortgage derivative(1,631)96 (1,727)
Balance June 30, 2022$986 $66 $920 

41

The following table presents the carrying value of equity securities without readily determinable fair values as of June 30, 2022 that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of June 30, 2022:
 ($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, 2021
$13,542 
Additions
Sales(8)
Carrying value as of June 30, 2022
$13,538 
Cumulative upward carrying value changes between January 1, 2018 and June 30, 2022
$13,444 
Cumulative downward carrying value changes/impairment between January 1, 2018 and June 30, 2022
$— 
The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:
($ in Thousands)Fair Value HierarchyFair ValueConsolidated Statements of Income Category of Adjustment Recognized in Income
Adjustment Recognized on the Consolidated Statements of Income(c)
June 30, 2022
Assets
Individually evaluated loans(a)
Level 3$35,906 Provision for credit losses$(2,260)
OREO(b)
Level 22,098 
Other noninterest expense / provision for credit losses(d)
496 
December 31, 2021
Assets
Individually evaluated loans(a)
Level 3$69,917 Provision for credit losses$(3,045)
OREO(b)
Level 221,299 
Other noninterest expense / provision for credit losses(d)
7,345 
Mortgage servicing rights(e)
Level 357,259 Mortgage banking, net16,186 
(a) Includes probable TDRs which are individually analyzed, net of the related ACLL, of which there were none at June 30, 2022.
(b) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table.
(c) Includes the full year impact on the consolidated statements of income.
(d) When a property's value is written down at the time it is transferred to OREO, the charge off is booked to the provision for credit losses. When a property is already in OREO and subsequently written down, the charge off is booked to other noninterest expense.
(e) 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 on a recurring basis.
Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a nonrecurring basis include the fair value analysis in the goodwill impairment test as well as intangible assets and other nonfinancial long-lived assets measured at fair value for the purpose of impairment assessment.
The table below presents the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:
June 30, 2022Valuation TechniqueSignificant Unobservable InputRange of InputsWeighted Average Input Applied
Mortgage servicing rightsDiscounted cash flowOption adjusted spread8%-10%8%
Mortgage servicing rightsDiscounted cash flowConstant prepayment rate—%-100%8%
Individually evaluated loansAppraisals / Discounted cash flowCollateral / Discount factor27%-29%27%
Interest rate lock commitments to originate residential mortgage loans held for saleDiscounted cash flowClosing Ratio32%-100%86%
42

Fair Value of Financial Instruments
The Corporation is required to disclose estimated fair values for its financial instruments.
Fair value estimates are set forth below for the Corporation’s financial instruments:
 Jun 30, 2022Dec 31, 2021
($ in Thousands)Fair Value Hierarchy LevelCarrying AmountFair ValueCarrying AmountFair Value
Financial assets
Cash and due from banks Level 1$397,364 $397,364 $343,831 $343,831 
Interest-bearing deposits in other financial institutions Level 1436,887 436,887 681,684 681,684 
Federal funds sold and securities purchased under agreements to resell Level 132,820 32,820 — — 
AFS investment securities Level 1113,109 113,109 122,957 122,957 
AFS investment securitiesLevel 22,564,402 2,564,402 4,209,058 4,209,058 
HTM investment securities, netLevel 1998 955 1,000 1,001 
HTM investment securities, netLevel 23,944,208 3,533,175 2,237,947 2,347,608 
Equity securities with readily determinable fair valuesLevel 15,502 5,502 4,810 4,810 
Equity securities without readily determinable fair valuesLevel 313,538 13,538 13,542 13,542 
FHLB and Federal Reserve Bank stocksLevel 2237,616 237,616 168,281 168,281 
Residential loans held for saleLevel 242,676 42,676 136,638 136,638 
Commercial loans held for saleLevel 244,721 44,721 — — 
Loans, netLevel 326,213,927 25,322,573 23,944,934 23,980,330 
Bank and corporate owned life insuranceLevel 2675,347 675,347 680,021 680,021 
Mortgage servicing rights, net(a)
Level 376,570 76,570 54,862 57,259 
Derivatives (other assets)(b)
Level 238,374 38,374 90,379 90,379 
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)Level 3986 986 2,617 2,617 
Forward commitments on residential mortgage loans (other assets)Level 3— — 30 30 
Forward commitments on TBA securities (other assets)Level 347 47 — — 
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accountsLevel 3$27,352,996 $27,352,996 $27,119,167 $27,119,167 
Time deposits(c)
Level 21,223,581 1,223,581 1,347,262 1,347,262 
Short-term fundingLevel 2705,620 705,216 354,262 354,248 
FHLB advancesLevel 23,258,039 3,250,216 1,621,047 1,680,814 
Other long-term fundingLevel 2249,820 250,571 249,324 265,545 
Standby letters of credit(d)
Level 22,617 2,617 2,367 2,367 
Derivatives (accrued expenses and other liabilities)(b)
Level 2177,720 177,720 32,921 32,921 
Forward commitments on residential mortgage loans (accrued expenses and other liabilities) Level 3113 113 — — 
(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) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the
    same counterparty where there is a legally enforceable master netting agreement in place.
(c) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value.
(d) The commitment on standby letters of credit was $274 million at June 30, 2022 and $248 million at December 31, 2021. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
Note 14 Retirement Plans
The Corporation has a noncontributory defined benefit RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes.
The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans.
43

The components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three and six months ended June 30, 2022 and 2021 were as follows:
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Components of Net Periodic Benefit Cost
RAP
Service cost$923 $2,075 $1,847 $4,151 
Interest cost1,772 1,623 3,545 3,245 
Expected return on plan assets(6,736)(6,430)(13,472)(12,861)
Amortization of prior service cost(63)(18)(125)(37)
Amortization of actuarial loss74 1,050 147 2,100 
Total net periodic pension cost$(4,029)$(1,701)$(8,059)$(3,402)
Postretirement Plan
Interest cost$13 $13 $27 $26 
Amortization of prior service cost(19)(19)(38)(38)
Total net periodic benefit cost$(6)$(6)$(11)$(12)
The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item other of noninterest expense on the consolidated statements of income. The service cost components are included in personnel on the consolidated statements of income.
The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions during the six months ended June 30, 2022 and 2021.
Note 15 Segment Reporting
The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer, and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in the Corporation’s 2021 Annual Report on Form 10-K with certain exceptions. The more significant of these exceptions are described herein.
The reportable segment results are presented based on the Corporation's internal management accounting process. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. GAAP. As a result, reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in previously reported segment financial data. Additionally, the information presented is not indicative of how the segments would perform if they operated as independent entities.
To determine financial performance of each segment, the Corporation allocates FTP assignments, the provision for credit losses, certain noninterest expenses, income taxes, and equity to each segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed.
The Corporation allocates net interest income using an internal FTP methodology that charges users of funds (assets, primarily loans) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment and / or re-pricing characteristics of the assets and liabilities. The net effect of this allocation is offset in the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's net interest income. The net FTP allocation is reflected as net intersegment interest income (expense) in the accompanying tables.
The provision for credit losses is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an ACLL model using the methodologies described in the Corporation’s 2021 Annual Report on Form 10-K. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect
44

expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including amortization of CDIs and other intangible assets associated with acquisitions, acquisition-related costs, and asset gains on disposed business units) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk).
A brief description of each business segment is presented below. A more in-depth discussion of these segments can be found in the Segment Reporting note in the Corporation’s 2021 Annual Report on Form 10-K.
The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions by providing lending and deposit solutions as well as the support to deliver, fund, and manage such banking solutions. In addition, this segment provides a variety of investment, fiduciary, and retirement planning products and services to individuals and small to mid-sized businesses. During the first quarter of 2021, the Corporation sold its wealth management subsidiary Whitnell. The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses, by providing lending and deposit solutions. The Risk Management and Shared Services segment includes key shared operational functions and also includes residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long-term credit charge mismatches).
Effective during the first quarter of 2022, certain support functions and a select group of banking regions were realigned into the Community, Consumer, and Business segment from the Corporate and Commercial Specialty segment.
Information about the Corporation’s segments is presented below:
Corporate and Commercial Specialty
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Net interest income$111,359 $90,039 $201,992 $179,700 
Net intersegment interest income (expense)(5,301)4,324 3,224 8,994 
Segment net interest income106,058 94,363 205,216 188,694 
Noninterest income(a)
39,133 37,281 76,923 79,109 
Total revenue145,191 131,643 282,139 267,803 
Provision for credit losses12,246 15,716 24,900 32,395 
Noninterest expense56,847 53,902 113,406 109,349 
Income before income taxes76,098 62,026 143,833 126,058 
Income tax expense13,919 11,214 26,232 23,106 
Net income$62,179 $50,812 $117,601 $102,953 
Allocated goodwill$525,836 $525,836 
Community, Consumer, and Business
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Net interest income$76,999 $73,477 $146,543 $145,253 
Net intersegment interest income30,638 15,992 49,470 30,881 
Segment net interest income107,636 89,470 196,013 176,134 
Noninterest income32,121 32,967 65,327 80,298 
Total revenue139,757 122,437 261,341 256,432 
Provision for credit losses4,924 5,279 9,580 11,207 
Noninterest expense105,139 101,735 203,802 202,086 
Income before income taxes29,695 15,424 47,959 43,139 
Income tax expense6,236 3,239 10,071 9,059 
Net income$23,459 $12,185 $37,888 $34,080 
Allocated goodwill$579,156 $579,156 
45

 Risk Management and Shared Services
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Net interest income$27,789 $15,999 $55,358 $30,464 
Net intersegment (expense)(25,337)(20,316)(52,694)(39,875)
Segment net interest income (loss)2,452 (4,318)2,664 (9,412)
Noninterest income4,204 3,195 7,675 9,379 
Total revenue6,656 (1,123)10,339 (33)
Provision for credit losses(17,172)(55,999)(38,472)(101,610)
Noninterest expense19,434 18,839 37,505 38,386 
Income before income taxes4,394 36,037 11,307 63,191 
Income tax expense3,209 8,027 5,710 14,917 
Net income$1,186 $28,010 $5,597 $48,274 
Allocated goodwill$— $— 
Consolidated Total
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Net interest income$216,146 $179,515 $403,893 $355,416 
Net intersegment interest income— — — — 
Segment net interest income216,146 179,515 403,893 355,416 
Noninterest income(a)
75,458 73,443 149,925 168,786 
Total revenue291,604 252,957 553,819 524,202 
Provision for credit losses(2)(35,004)(3,992)(58,009)
Noninterest expense181,420 174,475 354,712 349,821 
Income before income taxes110,187 113,487 203,099 232,389 
Income tax expense23,363 22,480 42,013 47,082 
Net income$86,824 $91,007 $161,086 $185,307 
Allocated goodwill$1,104,992 $1,104,992 
(a) For the six months ended June 30, 2021, the Corporation recognized a $2 million pre-tax gain on sale of Whitnell.
46

Note 16 Accumulated Other Comprehensive Income (Loss)
The following tables summarize the components of accumulated other comprehensive income (loss) at June 30, 2022 and 2021, including changes during the preceding three and six month periods as well as any reclassifications out of accumulated other comprehensive income (loss):
($ in Thousands)AFS Investment
Securities
Defined Benefit
Pension and
Postretirement
Obligations
Accumulated
Other
Comprehensive
Income (Loss)
Balance December 31, 2021
$(5,266)$(5,051)$(10,317)
Other comprehensive (loss) before reclassifications(168,321)— (168,321)
Unrealized (losses) on AFS securities transferred to HTM securities(67,604)— (67,604)
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities (gains), net(12)— (12)
HTM investment securities, net, at amortized cost4,381 — 4,381 
Personnel expense— (163)(163)
Other expense— 147 147 
Income tax benefit59,096 59,100 
Net other comprehensive (loss) during period(172,460)(12)(172,472)
Balance June 30, 2022$(177,726)$(5,062)$(182,788)
Balance December 31, 2020
$41,325 $(28,707)$12,618 
Other comprehensive (loss) before reclassifications(16,002)— (16,002)
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities losses, net16 — 16 
HTM investment securities, net, at amortized cost1,163 — 1,163 
Personnel expense— (74)(74)
Other expense— 2,100 2,100 
Income tax (expense) benefit3,574 (506)3,068 
Net other comprehensive income (loss) during period(11,249)1,519 (9,729)
Balance June 30, 2021$30,076 $(27,187)$2,889 
($ in Thousands)AFS Investments
Securities
Defined Benefit
Pension and
Post Retirement
Obligations
Accumulated
Other
Comprehensive
Income (Loss)
Balance March 31, 2022$(131,968)$(5,057)$(137,024)
Other comprehensive (loss) before reclassifications(65,038)— (65,038)
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities losses, net— 
HTM investment securities, net, at amortized cost3,273 — 3,273 
Personnel expense— (81)(81)
Other expense— 74 74 
Income tax benefit15,998 16,000 
Net other comprehensive (loss) during period(45,758)(6)(45,764)
Balance June 30, 2022$(177,726)$(5,062)$(182,788)
Balance March 31, 2021$23,754 $(27,947)$(4,193)
Other comprehensive income before reclassifications7,978 — 7,978 
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities (gains), net(24)— (24)
HTM investment securities, net, at amortized cost645 — 645 
Personnel expense— (37)(37)
Other expense— 1,050 1,050 
Income tax (expense)(2,277)(253)(2,530)
Net other comprehensive income during period6,322 760 7,082 
Balance June 30, 2021$30,076 $(27,187)$2,889 

47

Note 17 Revenue from Contracts with Customers
Revenue from contracts with customers is recognized when obligations under the terms of a contract with the Corporation's customer are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We do not have any material significant payment terms as payment is received at or shortly after the satisfaction of the performance obligation.
The Corporation's disaggregated revenue by major source is presented below:
Corporate and Commercial Specialty
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Wealth management fees$21,332 $22,706 $43,735 $45,120 
Service charges and deposit account fees3,724 3,859 7,508 7,800 
Card-based fees(a)
327 295 744 640 
Other revenue658 1,151 1,893 1,814 
   Noninterest income (in-scope of Topic 606) $26,041 $28,010 $53,881 $55,375 
   Noninterest income (out-of-scope of Topic 606)(b)
13,092 9,271 23,042 23,734 
  Total noninterest income $39,133 $37,281 $76,923 $79,109 
Community, Consumer, and Business
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Service charges and deposit account fees$12,777 $11,683 $25,846 $22,583 
Card-based fees(a)
11,135 10,709 20,659 20,123 
Other revenue1,770 2,801 3,632 6,476 
   Noninterest income (in-scope of Topic 606) $25,683 $25,193 $50,138 $49,181 
Noninterest income (out-of-scope of Topic 606)6,438 7,774 15,189 31,116 
  Total noninterest income $32,121 $32,967 $65,327 $80,298 
Risk Management and Shared Services
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Service charges and deposit account fees$$$$22 
Card-based fees(a)
10 17 
Other revenue(120)307 (81)697 
Noninterest income (in-scope of Topic 606) $(105)$319 $(56)$728 
Noninterest income (out-of-scope of Topic 606)4,310 2,876 7,731 8,651 
  Total noninterest income $4,204 $3,195 $7,675 $9,379 
Consolidated Total
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Wealth management fees$21,332 $22,706 $43,735 $45,120 
Service charges and deposit account fees16,506 15,549 33,363 30,404 
Card-based fees(a)
11,472 11,009 21,421 20,773 
Other revenue2,309 4,258 5,444 8,987 
Noninterest income (in-scope of Topic 606) $51,619 $53,522 $103,963 $105,284 
Noninterest income (out-of-scope of Topic 606)(b)
23,840 19,921 45,962 63,502 
  Total noninterest income $75,458 $73,443 $149,925 $168,786 
(a) Certain card-based fees are out-of-scope of Topic 606.
(b) For the six months ended June 30, 2021, the Corporation recognized a $2 million pre-tax gain on the sale of Whitnell.

48

Below is a listing of performance obligations for the Corporation's main revenue streams:
Revenue StreamNoninterest income in-scope of Topic 606
Service charges and deposit account feesService charges and deposit account fees consist of monthly service fees (i.e. business analyzed fees and consumer service charges) and other deposit account related fees. The Corporation's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges and deposit account fees is primarily received immediately or in the following month through a direct charge to customers’ accounts.
Card-based fees(a)
Card-based fees are primarily comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation's debit and credit cards are processed through card payment networks. ATM and merchant fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment is typically received immediately or in the following month.
Trust and asset management fees(b)
Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to the customers’ accounts. The Corporation's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.
Brokerage and advisory fees(b)
Brokerage and advisory fees primarily consist of investment advisory, brokerage, retirement services, and annuities. The Corporation's performance obligation for investment advisory services and retirement services is generally satisfied, and the related revenue recognized, over the period in which the services are provided. The performance obligation for annuities is satisfied upon sale of the annuity, and therefore, the related revenue is primarily recognized at the time of sale. Payment for these services are typically received immediately or in advance of the service.
(a) Certain card-based fees are out-of-scope of Topic 606.
(b) Trust and asset management fees and brokerage and advisory fees are included in wealth management fees.
Note 18 Leases
The Corporation has operating leases for retail and corporate offices, land, and equipment. The Corporation also has a finance lease for retail and corporate offices.
These leases have original terms of 1 year or longer with remaining maturities up to 40 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any purchase options or optional periods that the Corporation is reasonably likely to extend have been included in the capitalization.
The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered.
Operating and finance lease costs and cash flows resulting from these leases are presented below:
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)2022202120222021
Operating lease costs$1,926 $2,243 $3,724 $4,483 
Finance lease costs32 19 73 58 
Operating lease cash flows2,327 2,777 4,735 5,740 
Finance lease cash flows37 40 80 80 
The lease classifications on the consolidated balance sheets were as follows:
($ in Thousands)Consolidated Balance Sheets CategoryJun 30, 2022Dec 31, 2021
Operating lease right-of-use assetPremises and equipment$26,621 $28,299 
Finance lease right-of-use assetOther assets498 143 
Operating lease liabilityAccrued expenses and other liabilities29,627 31,345 
Finance lease liabilityOther long-term funding511 163 
49

The lease payment obligations, weighted-average remaining lease term, and weighted-average original discount rate were as follows:
Jun 30, 2022Dec 31, 2021
($ in Thousands)Lease paymentsWeighted-average lease term (in years)Weighted-average discount rateLease paymentsWeighted-average lease term (in years)Weighted-average discount rate
Operating leases
Equipment$191 1.000.44 %$192 1.500.45 %
Retail and corporate offices26,553 5.712.28 %29,008 5.563.26 %
Land5,160 7.933.13 %5,551 8.293.12 %
Total operating leases$31,904 6.022.41 %$34,751 5.943.22 %
Finance leases
Retail and corporate offices$530 5.751.32 %$112 1.251.32 %
Land— 0.00— %51 0.671.07 %
Total finance leases$530 5.751.32 %$164 1.071.24 %
Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows:
($ in Thousands)Operating LeasesFinance LeasesTotal Leases
Six months ended December 31, 2022$3,515 $45 $3,560 
20236,240 92 6,332 
20245,650 93 5,742 
20254,387 93 4,479 
20263,823 93 3,915 
Beyond 20268,290 116 8,406 
Total lease payments$31,904 $530 $32,434 
Less: interest2,276 19 2,296 
Present value of lease payments$29,627 $511 $30,138 
As of June 30, 2022 and December 31, 2021, additional operating leases, primarily retail and corporate offices, that had not yet commenced totaled $14 million and $13 million, respectively. The leases that had not yet commenced as of June 30, 2022 will commence between July 2022 and October 2023 with lease terms of 1 year to 6 years.
50

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, 2021, in the Corporations Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, in Item 1A of Part 2 herein, 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 sum due to the use of rounded numbers for disclosure purposes.
Performance Summary
Average loans of $24.8 billion increased $472 million, or 2%, compared to the first six months of 2021. For 2022, the Corporation expects commercial loan growth, including asset-based lending and equipment finance, of approximately $1.7 billion and auto finance loan growth of approximately $1.3 billion.
Average deposits of $28.4 billion increased $1.3 billion, or 5%, from the first six months of 2021, driven primarily by increases in low cost deposits partially offset by decreases in higher cost deposits.
Net interest income of $404 million increased $48 million, or 14%, from the first six months of 2021, and net interest margin was 2.57% compared to 2.38% for the first six months of 2021. The increase in net interest income was driven by higher loan income in a majority of loan categories and higher investment income resulting from the Federal Reserve increasing the federal funds target interest rate 150 bp during the first six months of 2022. For 2022, the Corporation expects net interest income of more than $890 million, assuming a 75 bp increase in July and a 25 bp increase at each remaining FOMC meeting this year.
Provision for credit losses had a release of $4 million, compared to a release of $58 million for the first six months of 2021. For 2022, the Corporation expects to adjust provision to reflect changes to risk grades, economic conditions, other indications of credit quality, and loan volume.
Noninterest income of $150 million decreased $19 million, or 11%, from the first six months of 2021, primarily driven by the $18 million, or 55%, decrease in mortgage banking, net, resulting from decreased gains on sold loans due to lower mortgage settlements, partially offset by an increase of $5 million in mortgage servicing fees, net that was primarily due to lower levels of decay in the MSRs asset as a result of slower prepayment speeds. For 2022, the Corporation expects noninterest income of $290 million to $300 million.
Noninterest expense of $355 million increased $5 million, or 1%, from the first six months of 2021. For 2022, the Corporation expects noninterest expense will be approximately $730 million to $740 million.
51

Table 1 Summary Results of Operations: Trends
Six months endedThree months ended
($ in Thousands, except per share data)Jun 30, 2022Jun 30, 2021Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
Net income$161,086 $185,307 $86,824 $74,262 $76,877 $88,809 $91,007 
Net income available to common equity155,336 175,226 83,949 71,387 74,002 84,655 86,131 
Earnings per common share - basic 1.04 1.14 0.56 0.48 0.49 0.56 0.56 
Earnings per common share - diluted1.03 1.13 0.56 0.47 0.49 0.56 0.56 
Effective tax rate20.69 %20.26 %21.20 %20.07 %16.48 %20.61 %19.81 %
52

Income Statement Analysis
Net Interest Income
Table 2 Net Interest Income Analysis
 Six Months Ended Jun 30,
 20222021
 ($ in Thousands)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
Assets
Earning assets
Loans(a)(b)(c)
Commercial PPP lending$28,818 $1,624 11.36 %$753,778 $18,949 5.07 %
Asset-based lending (ABL) & equipment finance(d)
223,717 3,631 3.27 %129,461 1,966 3.06 %
Commercial and business lending (excl PPP, ABL and equipment finance)9,082,412 121,502 2.70 %8,357,726 106,010 2.56 %
Commercial real estate lending6,270,743 97,119 3.12 %6,165,433 88,455 2.89 %
Total commercial15,605,690 223,876 2.89 %15,406,399 215,380 2.82 %
Residential mortgage7,766,296 113,837 2.93 %7,911,635 110,841 2.80 %
Auto finance498,175 8,667 3.51 %9,319 204 4.42 %
Other retail881,382 22,032 5.02 %952,621 22,623 4.77 %
Total loans24,751,542 368,412 2.99 %24,279,974 349,049 2.89 %
Investment securities
Taxable4,406,507 34,789 1.58 %3,099,322 15,855 1.02 %
Tax-exempt(a)
2,405,952 40,933 3.40 %1,927,169 35,945 3.73 %
Other short-term investments751,407 4,413 1.18 %1,381,370 3,521 0.51 %
Investments and other7,563,866 80,135 2.12 %6,407,860 55,320 1.73 %
Total earning assets32,315,408 $448,547 2.79 %30,687,834 $404,369 2.65 %
Other assets, net3,152,445 3,345,982 
Total assets$35,467,853 $34,033,816 
Liabilities and Stockholders' Equity
Interest-bearing liabilities
Interest-bearing deposits
Savings$4,606,809 $910 0.04 %$3,966,797 $689 0.04 %
Interest-bearing demand6,566,704 4,002 0.12 %5,796,680 2,234 0.08 %
Money market6,970,392 3,168 0.09 %6,928,898 2,082 0.06 %
Network transaction deposits755,357 1,745 0.47 %994,016 591 0.12 %
Time deposits1,284,037 1,766 0.28 %1,583,725 4,923 0.63 %
Total interest-bearing deposits20,183,299 11,591 0.12 %19,270,116 10,519 0.11 %
Federal funds purchased and securities sold under agreements to repurchase374,661 444 0.24 %146,941 55 0.08 %
Commercial paper25,545 0.01 %49,026 13 0.05 %
FHLB advances2,019,622 17,871 1.78 %1,626,114 19,017 2.36 %
Long-term funding249,719 5,460 4.37 %549,402 11,160 4.06 %
Total short and long-term funding2,669,547 23,776 1.79 %2,371,483 30,245 2.56 %
Total interest-bearing liabilities22,852,845 $35,367 0.31 %21,641,598 $40,764 0.38 %
Noninterest-bearing demand deposits8,224,440 7,869,320 
Other liabilities428,752 405,519 
Stockholders’ equity3,961,816 4,117,378 
Total liabilities and stockholders’ equity$35,467,853 $34,033,816 
Interest rate spread2.48 %2.27 %
Net free funds0.09 %0.11 %
Fully tax-equivalent net interest income and net interest margin ("NIM")$413,179 2.57 %$363,605 2.38 %
Fully tax-equivalent adjustment9,286 8,189 
Net interest income$403,893 $355,416 
(a) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21% and is net of the effects of certain disallowed interest deductions.
(b) Nonaccrual loans and loans held for sale have been included in the average balances.
(c) Interest income includes amortization of net deferred loan origination costs and net accreted purchase loan discount.
(d) Periods prior to March 31, 2022 do not include equipment finance.
53

Table 2 Net Interest Income Analysis
 Three Months Ended
 Jun 30, 2022Mar 31, 2022Jun 30, 2021
 ($ 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(a)(b)(c)
Commercial PPP lending$14,026 $346 9.91 %$43,774 $1,277 11.83 %$701,440 $10,048 5.75 %
Asset-based lending (ABL) & equipment finance(d)
244,369 2,181 3.58 %202,836 1,449 2.90 %121,153 894 2.96 %
Commercial and business lending (excl PPP, ABL and equipment finance)9,346,218 68,748 2.95 %8,815,676 52,754 2.43 %8,316,472 52,992 2.56 %
Commercial real estate lending6,363,395 53,233 3.36 %6,177,062 43,886 2.88 %6,159,728 44,139 2.87 %
Total commercial15,968,007 124,509 3.13 %15,239,348 99,366 2.64 %15,298,792 108,073 2.83 %
Residential mortgage7,860,220 58,434 2.97 %7,671,329 55,403 2.89 %7,861,139 55,337 2.82 %
Auto finance689,027 6,017 3.50 %305,202 2,649 3.52 %8,458 93 4.42 %
Other retail880,910 11,370 5.17 %881,859 10,662 4.87 %930,224 11,104 4.78 %
Total loans25,398,163 200,331 3.16 %24,097,738 168,081 2.81 %24,098,614 174,607 2.90 %
Investment securities
Taxable4,448,811 18,317 1.65 %4,363,733 16,472 1.51 %3,220,825 8,840 1.10 %
Tax-exempt(a)
2,427,068 20,637 3.40 %2,384,601 20,296 3.40 %1,953,696 18,101 3.71 %
Other short-term investments352,310 2,420 2.75 %1,154,939 1,993 0.70 %1,766,615 1,826 0.41 %
Investments and other7,228,189 41,374 2.29 %7,903,273 38,761 1.96 %6,941,135 28,767 1.66 %
Total earning assets32,626,351 $241,705 2.97 %32,001,010 $206,842 2.60 %31,039,749 $203,375 2.62 %
Other assets, net3,106,232 3,199,172 3,339,898 
Total assets$35,732,583 $35,200,182 $34,379,647 
Liabilities and Stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings$4,682,783 $530 0.05 %$4,529,991 $380 0.03 %$4,121,553 $357 0.03 %
Interest-bearing demand6,413,077 2,977 0.19 %6,722,038 1,025 0.06 %5,879,173 1,057 0.07 %
Money market6,910,505 2,203 0.13 %7,030,945 965 0.06 %6,981,482 1,023 0.06 %
Network transaction deposits775,593 1,480 0.77 %734,895 265 0.15 %908,869 264 0.12 %
Time deposits1,255,292 829 0.26 %1,313,101 937 0.29 %1,509,705 1,909 0.51 %
Total interest-bearing deposits20,037,250 8,019 0.16 %20,330,970 3,571 0.07 %19,400,781 4,609 0.10 %
Federal funds purchased and securities sold under agreements to repurchase454,519 406 0.36 %293,915 38 0.05 %157,619 30 0.08 %
Commercial paper23,154 0.01 %27,963 0.01 %55,209 0.05 %
FHLB advances2,423,771 9,689 1.60 %1,610,983 8,182 2.06 %1,620,397 9,524 2.36 %
Long-term funding249,805 2,730 4.37 %249,632 2,730 4.38 %549,222 5,575 4.06 %
Total short and long-term funding3,151,249 12,826 1.63 %2,182,492 10,951 2.03 %2,382,446 15,136 2.55 %
Total interest-bearing liabilities23,188,499 $20,845 0.36 %22,513,462 $14,522 0.26 %21,783,227 $19,745 0.36 %
Noninterest-bearing demand deposits8,133,492 8,316,399 8,069,851 
Other liabilities473,478 383,528 395,950 
Stockholders’ Equity3,937,114 3,986,792 4,130,618 
Total liabilities and stockholders’ equity$35,732,583 $35,200,182 $34,379,647 
Interest rate spread2.61 %2.34 %2.26 %
Net free funds0.10 %0.08 %0.11 %
Fully tax-equivalent net interest income and net interest margin ("NIM")$220,860 2.71 %$192,320 2.42 %$183,629 2.37 %
Fully tax-equivalent adjustment4,713 4,573 4,115 
Net interest income$216,146 $187,747 $179,515 

(a) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21% and is net of the effects of certain disallowed interest deductions.
(b) Nonaccrual loans and loans held for sale have been included in the average balances.
(c) Interest income includes amortization of net deferred loan origination costs and net accreted purchase loan discount.
(d) Periods prior to March 31, 2022 do not include equipment finance.



54

Notable Contributions to the Change in Net Interest Income
Fully tax-equivalent net interest income and net interest income were $50 million, or 14%, and $48 million, or 14%, higher than the first six months of 2021, respectively. Average investments and other short-term investments increased $1.2 billion, or 18%. The increase in net interest income was driven by higher loan income in a majority of loan categories and higher investment income resulting from the Federal Reserve increasing the federal funds target interest rate 150 bp during the first six months of 2022, which resulted in the yield on earning assets increasing by 14 bp. Additionally, interest bearing liabilities costs decreased from the first six months of 2021. See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market Risk for a discussion of interest rate risk and market risk.
•    Average interest-bearing liabilities were up $1.2 billion, or 6%, compared to the first six months of 2021. Interest-bearing deposits increased $913 million, or 5%, primarily driven by an increase in low cost deposits partially offset by decreases in higher cost deposits. Average noninterest-bearing demand deposits were up $355 million, or 5%, versus the first six months of 2021. The cost of interest-bearing liabilities decreased 7 bp from the first six months of 2021, primarily attributable to a favorable mix with lower cost core deposit balances and lower cost short term FHLB advances increasing and higher cost deposits and long-term funding decreasing.
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 June 30, 2022 was the Moody's baseline forecast from May 2022 which was reviewed against the June 2022 forecast for material updates, over a 2 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.
55

Noninterest Income
Table 3 Noninterest Income
Six months endedThree months endedChanges vs
($ in Thousands, except as noted)Jun 30, 2022Jun 30, 2021YTD % ChangeJun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2022Jun 30, 2021
Wealth management fees(a)
$43,735 $45,120 (3)%$21,332 $22,404 $22,625 $22,110 $22,706 (5)%(6)%
Service charges and deposit account fees33,363 30,404 10 %16,506 16,856 17,039 16,962 15,549 (2)%%
Card-based fees21,368 20,725 %11,442 9,926 11,176 11,113 10,982 15 %%
Other fee-based revenue8,126 8,840 (8)%4,360 3,766 4,316 3,929 4,244 16 %%
Total fee-based revenue106,592 105,089 %53,641 52,952 55,157 54,113 53,480 %— %
Capital markets, net16,656 13,814 21 %8,010 8,646 9,674 7,114 5,696 (7)%41 %
Mortgage servicing fees, net(b)
3,712 (1,552)N/M1,882 1,830 795 323 (155)%N/M
Gains and fair value adjustments on loans held for sale421 23,367 (98)%(363)785 3,290 8,341 8,623 N/MN/M
Changes in mortgage servicing rights valuation, net of economic hedge(c)
10,403 10,239 %4,627 5,776 3,955 1,993 (340)(20)%N/M
Mortgage banking, net14,536 32,054 (55)%6,145 8,391 8,041 10,657 8,128 (27)%(24)%
Bank and corporate owned life insurance6,177 5,791 %4,106 2,071 4,704 2,760 3,088 98 %33 %
Other4,086 6,221 (34)%1,888 2,198 2,941 2,205 3,004 (14)%(37)%
Subtotal148,048 162,968 (9)%73,790 74,258 80,517 76,848 73,397 (1)%%
Asset gains (losses), net1,865 4,796 (61)%1,677 188 985 5,228 (14)N/MN/M
Investment securities gains(losses), net12 (16)N/M(8)21 — — 24 N/MN/M
Gain on the sale of branches, net(d)
— 1,038 (100)%— — — — 36 N/M(100)%
Total noninterest income$149,925 $168,786 (11)%$75,458 $74,467 $81,502 $82,076 $73,443 %%
Mortgage loans originated for sale during period$403,951 $889,315 (55)%$151,838 $252,113 $404,398 $455,842 $476,670 (40)%(68)%
Mortgage loan settlements during period500,410 884,581 (43)%204,321 296,089 426,785 463,425 484,446 (31)%(58)%
Assets under management, at market value(e)
11,561 12,937 13,679 13,148 13,141 (11)%(12)%
N/M = Not Meaningful
(a) Includes trust, asset management, brokerage, and annuity fees.
(b) Includes mortgage origination and servicing fees, net of MSRs amortization/decay.
(c) On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value. For all prior periods, MSRs were carried at LOCOM.
(d) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell. See Note 2 Acquisitions and Dispositions of the notes to the consolidated financial statements for additional details on the branch sales.
(e) $ in millions. Excludes assets held in brokerage accounts.
Notable Contributions to the Change in Noninterest Income
Mortgage banking, net decreased $18 million from the first six months of 2021, driven by decreased gains on sold loans due to lower mortgage settlements offset partially by an increase in mortgage servicing fees, net of $5 million primarily due to lower levels of decay in the MSRs asset as a result of slower prepayment speeds.
Service charges and deposit account fees increased $3 million from the first six months of 2021 as a result of higher overdraft and non-sufficient funds fees. On July 20, 2022, the Corporation eliminated non-sufficient funds fees, overdraft protection transfer fees, and continuous overdraft fees and reduced the daily limit of overdraft fee occurrences from 4 to 2.
Capital markets, net increased $3 million from the first six months of 2021 as a result of higher interest rate swap revenue.
Asset gains (losses), net decreased $3 million from the first six months of 2021, due to a gain of $2 million from the sale of Whitnell and higher gains from private equity investments during the first six months of 2021.

56

Noninterest Expense
Table 4 Noninterest Expense
Six months endedThree months endedChange vs
($ in Thousands)Jun 30, 2022Jun 30, 2021YTD % ChangeJun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2022Jun 30, 2021
Personnel$217,477 $211,020 %$112,666 $104,811 $107,787 $107,880 $106,994 %%
Technology42,707 40,975 %21,223 21,485 20,787 19,927 20,236 (1)%%
Occupancy30,231 30,835 (2)%14,151 16,080 16,863 15,814 14,679 (12)%(4)%
Business development and advertising10,610 9,366 13 %5,655 4,954 5,627 6,156 4,970 14 %14 %
Equipment9,920 10,999 (10)%4,960 4,960 4,905 5,200 5,481 — %(10)%
Legal and professional9,960 13,191 (24)%4,873 5,087 4,428 4,304 6,661 (4)%(27)%
Loan and foreclosure costs3,490 4,891 (29)%1,476 2,014 1,636 1,616 2,671 (27)%(45)%
FDIC assessment10,500 8,350 26 %5,400 5,100 4,800 5,000 3,600 %50 %
Other intangible amortization4,405 4,439 (1)%2,203 2,203 2,203 2,203 2,203 — %— %
Other15,412 15,755 (2)%8,815 6,597 13,173 9,793 6,979 34 %26 %
Total noninterest expense$354,712 $349,821 %$181,420 $173,292 $182,210 $177,892 $174,475 %%
Average FTEs(a)
4,060 4,005 %4,101 4,018 3,992 4,010 3,990 %%

(a) Average FTEs without overtime
Notable Contributions to the Change in Noninterest Expense
Personnel expense increased $6 million from the first six months of 2021, largely as a result of increased FTEs due to hiring related to previously announced initiatives.
Legal and professional expenses decreased $3 million from the first six months of 2021 as a result of lower consulting costs associated with mortgage activity.
Income Taxes
The Corporation recognized income tax expense of $42 million for the six months ended June 30, 2022, compared to income tax expense of $47 million for the six months ended June 30, 2021. The Corporation's effective tax rate was 20.69% for the first six months of 2022, compared to an effective tax rate of 20.26% for the first six months of 2021. The decrease in income tax expense during the first six months of 2022 was primarily driven by a decrease in income before tax. The increase in the effective tax rate was primarily driven by an increase in state tax expense. The Corporation expects a full year effective tax rate of approximately 21%, assuming no change in the statutory corporate tax rate.
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.
57

Balance Sheet Analysis
At June 30, 2022, total assets were $37.2 billion, up $2.1 billion, or 6%, from December 31, 2021 and up $3.1 billion, or 9%, from June 30, 2021.
Interest bearing deposits in other financial institutions were $437 million at June 30, 2022, down $245 million, or 36%, from December 31, 2021 and down $903 million, or 67%, from June 30, 2021, due to the deployment of excess liquidity into investment securities purchases and loan growth.
AFS investment securities, at fair value were $2.7 billion at June 30, 2022, down $1.7 billion, or 38%, from December 31, 2021, and down $646 million, or 19%, from June 30, 2021. HTM investment securities, net, at amortized cost were $3.9 billion at June 30, 2022, up $1.7 billion, or 76%, from December 31, 2021 and up $2.1 billion, or 119%, from June 30, 2021, driven by the deployment of cash into higher yielding assets and a $1.6 billion transfer of AFS investment securities, at fair value, to HTM investment securities, net, at amortized cost during the first quarter of 2022. See Note 6 Investment Securities of the notes to consolidated financial statements for additional details.
Loans of $26.5 billion at June 30, 2022 were up $2.3 billion, or 9%, from December 31, 2021 and up $2.5 billion, or 11%, from June 30, 2021. See Note 7 Loans of the notes to consolidated financial statements for additional details.
At June 30, 2022, total deposits of $28.6 billion were up $110 million from December 31, 2021 and were up $1.3 billion, or 5%, from June 30, 2021. See section Deposits and Customer Funding for additional information on deposits.
Other long-term funding was $250 million at June 30, 2022 and $249 million at December 31, 2021, and was down $299 million, or 54%, from June 30, 2021, primarily driven by the redemption of the Bank's senior notes on July 13, 2021.
FHLB advances were $3.3 billion at June 30, 2022, up $1.6 billion, or 101%, from both December 31, 2021 and June 30, 2021, and federal funds purchased and securities sold under agreements to repurchase were $683 million at June 30, 2022, up $363 million, or 114%, from December 31, 2021, and up $512 million from June 30, 2021, mainly due to loan growth. See Note 9 Short and Long-Term Funding of the notes to consolidated financial statements for additional details.
Preferred equity was $193 million at both June 30, 2022 and December 31, 2021, and was down $97 million, or 33%, from June 30, 2021, as a result of the redemption of the Corporation's Series D Preferred Stock during the third quarter of 2021.
Loans
Table 5 Period End Loan Composition
 Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
 ($ in Thousands)Amount% of
Total
Amount% of
Total
Amount% of
Total
Amount% of
Total
Amount% of
Total
PPP$9,514 — %$17,995 — %$66,070 — %$182,121 %$405,482 %
Asset-based lending & equipment finance(a)
263,044 %231,040 %178,027 %111,027 — %105,726 — %
Commercial and industrial8,984,127 34 %8,102,380 33 %8,208,289 34 %7,816,432 33 %7,803,393 33 %
Commercial real estate — owner occupied928,152 %973,572 %971,326 %879,554 %880,755 %
Commercial and business lending10,184,836 38 %9,324,986 38 %9,423,711 39 %8,989,133 38 %9,195,355 38 %
Commercial real estate — investor4,790,241 18 %4,469,241 18 %4,384,569 18 %4,296,489 18 %4,300,651 18 %
Real estate construction1,775,648 %1,760,076 %1,808,976 %1,834,871 %1,880,897 %
Commercial real estate lending6,565,889 25 %6,229,317 25 %6,193,545 26 %6,131,360 26 %6,181,549 26 %
Total commercial16,750,726 63 %15,554,303 63 %15,617,256 64 %15,120,493 64 %15,376,904 64 %
Residential mortgage8,002,943 30 %7,609,343 31 %7,567,310 31 %7,590,895 32 %7,638,372 32 %
Auto finance847,969 %497,523 %143,045 %6,739 — %7,817 — %
Home equity592,843 %580,867 %595,615 %608,566 %631,783 %
Other consumer300,217 %289,889 %301,723 %294,979 %292,660 %
Total consumer9,743,972 37 %8,977,622 37 %8,607,693 36 %8,501,180 36 %8,570,632 36 %
Total loans$26,494,698 100 %$24,531,926 100 %$24,224,949 100 %$23,621,673 100 %$23,947,536 100 %
(a) Periods prior to March 31, 2022 do not include equipment finance.
The Corporation has long-term guidelines relative to the proportion of Commercial and Business, CRE, and Consumer loan commitments within the overall loan portfolio, with each targeted to represent 30 to 40% of the overall loan portfolio. The targeted long-term guidelines were unchanged during 2021 and the first six months of 2022. 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 Enterprise Risk Committee of the Corporation’s Board of Directors. These guidelines and limits are designed to create balance and diversification within the loan portfolios.
58

The Corporation’s loan distribution and interest rate sensitivity as of June 30, 2022 are summarized in the following table:
Table 6 Loan Distribution and Interest Rate Sensitivity
($ in Thousands)
Within 1 Year(a)
1-5 Years5-15 YearsOver 15 YearsTotal% of Total
PPP$762 $8,752 $— $— $9,514 — %
Asset-based lending & equipment finance172,885 45,130 45,029 — 263,044 %
Commercial and industrial8,403,145 450,789 105,220 24,972 8,984,127 34 %
Commercial real estate — owner occupied523,377 292,090 111,254 1,430 928,152 %
Commercial real estate — investor4,394,743 250,521 143,394 1,583 4,790,241 18 %
Real estate construction1,717,452 45,392 3,543 9,261 1,775,648 %
Commercial - adjustable9,083,007 100,371 12,127 8,660 9,204,165 35 %
Commercial - fixed6,129,357 992,305 396,314 28,586 7,546,561 28 %
Residential mortgage - adjustable324,248 628,309 1,573,688 155,750 2,681,995 10 %
Residential mortgage - fixed35,061 81,033 254,987 4,949,868 5,320,948 20 %
Auto finance288 20,490 827,191 — 847,969 %
Home equity545,872 16,283 13,367 17,321 592,843 %
Other consumer173,190 48,276 36,700 42,050 300,217 %
Total loans$16,291,022 $1,887,067 $3,114,374 $5,202,234 $26,494,698 100 %
Fixed-rate$6,232,983 $1,153,906 $697,833 $5,019,768 $13,104,489 49 %
Floating or adjustable rate10,058,040 733,161 2,416,542 182,466 13,390,209 51 %
Total$16,291,022 $1,887,067 $3,114,374 $5,202,234 $26,494,698 100 %
(a) Demand loans, past due loans, overdrafts, and credit cards are reported in the “Within 1 Year” category.
At June 30, 2022, $19.6 billion, or 74%, of the loans outstanding and $15.3 billion, or 92%, 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 7 Loans of the notes to consolidated financial statements for additional information on managing overall credit quality.
The loan portfolio is widely diversified by types of borrowers, industry groups, and market areas within the Corporation's branch footprint. Significant loan concentrations are considered to exist when there are amounts loaned to numerous borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. At June 30, 2022, no significant concentrations existed in the Corporation’s portfolio in excess of 10% of total loan exposure.
Commercial and business lending: The commercial and business lending classification primarily includes commercial loans to large corporations, middle market companies, small businesses, and lease financing.
Table 7 Largest Commercial and Industrial Industry Group Exposures, by NAICS Subsector
June 30, 2022NAICS SubsectorOutstanding BalanceTotal Exposure% of Total Loan Exposure
Real Estate(a)
531$1,725,081 $3,160,552 %
Credit Intermediation and Related Activities(b)
5221,037,994 2,511,829 %
Utilities(c)
2212,100,956 2,383,329 %
Merchant Wholesalers, Durable Goods423453,912 769,019 %
(a) Includes REIT lines
(b) Includes mortgage warehouse lines
(c) 55% of the total exposure supports wind and solar projects
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 loans 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.
59

Commercial real estate - investor: CRE-investor is comprised of loans secured by various non-owner occupied or investor income producing property types.
Table 8 Largest Commercial Real Estate Investor Property Type Exposures
June 30, 2022% of Total Loan Exposure% of Total Commercial Real Estate - Investor Loan Exposure
Multi-Family%32 %
Office%24 %
Industrial%22 %
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 9 Largest Real Estate Construction Property Type Exposures
June 30, 2022% of Total Loan Exposure% of Total Real Estate Construction Loan Exposure
Multi-Family%35 %
Single Family%24 %
Industrial%22 %
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 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 87% of the outstanding loan balances in the Corporation's branch footprint at June 30, 2022. 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. Most of the adjustable rate mortgages have an initial fixed rate term of 3, 5, 7 or 10 years.
The Corporation generally retains certain fixed-rate residential real estate mortgages in its loan portfolio, including retail and private banking jumbo mortgages and CRA-related mortgages. As part of management’s historical practice of originating and servicing residential mortgage loans, generally the Corporation’s 30 year, agency conforming, fixed-rate residential real estate mortgage loans have been sold in the secondary market with servicing rights retained. Subject to management’s analysis of the current interest rate environment, among other market factors, the Corporation may choose to retain mortgage loan production on its balance sheet. See section Loans for additional information on loans.
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.
60

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. See section Loans for additional information on loans.
Indirect Auto: The Corporation currently purchases retail auto sales contracts via a network of approved auto dealerships across 13 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. Over time, the Corporation expects roughly 60% of originations to be secured by used vehicles.
Other consumer: Other consumer consists of student loans, short-term personal installment loans, and credit cards. The Corporation had $91 million and $101 million of student loans at June 30, 2022 and December 31, 2021, respectively, the majority of which are government guaranteed. Currently, there is federal student loan relief in effect through August 31, 2022. Credit risk for non-government guaranteed student loans, short-term personal installment loans, and credit cards 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. The student loan portfolio is in run-off and no new student loans are being originated.
61

Nonperforming Assets
Management is committed to a proactive nonaccrual and problem loan identification philosophy. This philosophy is implemented through the ongoing monitoring and review of all pools of risk in the loan portfolio to ensure that problem loans are identified quickly and the risk of loss is minimized. Table 10 provides detailed information regarding NPAs, which include nonaccrual loans, OREO, and repossessed assets:
Table 10 Nonperforming Assets
 ($ in Thousands)Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Nonperforming assets
PPP$— $41 $46 $— $— 
Commercial and industrial843 225 6,233 8,497 18,380 
Commercial real estate — owner occupied— — — 
Commercial and business lending843 266 6,279 8,504 18,387 
Commercial real estate — investor46,823 80,886 60,677 61,504 63,003 
Real estate construction604 609 177 247 247 
Commercial real estate lending47,427 81,495 60,855 61,751 63,250 
Total commercial48,270 81,761 67,134 70,256 81,637 
Residential mortgage52,840 53,827 55,362 56,678 56,795 
Auto finance53 49 52 67 56 
Home equity7,100 7,490 7,726 7,838 8,517 
Other consumer83 95 170 222 131 
Total consumer60,075 61,460 63,309 64,806 65,498 
Total nonaccrual loans108,345 143,221 130,443 135,062 147,135 
Commercial real estate owned957 861 984 1,005 1,318 
Residential real estate owned3,042 2,209 3,666 2,126 2,438 
Bank properties real estate owned(a)
13,880 15,123 24,969 30,724 20,244 
OREO17,879 18,194 29,619 33,855 24,000 
Repossessed assets102 — — — — 
Total nonperforming assets$126,327 $161,414 $160,062 $168,917 $171,135 
Accruing loans past due 90 days or more
Commercial$133 $125 $151 $98 $203 
Consumer1,422 1,470 1,111 932 1,099 
Total accruing loans past due 90 days or more$1,555 $1,595 $1,263 $1,029 $1,302 
Restructured loans (accruing)
Commercial$15,425 $10,127 $22,763 $25,582 $26,353 
Consumer18,828 19,876 19,768 18,917 15,582 
Total restructured loans (accruing)$34,253 $30,003 $42,530 $44,499 $41,935 
Nonaccrual restructured loans (included in nonaccrual loans)$22,172 $19,352 $17,426 $15,226 $17,237 
Ratios
Nonaccrual loans to total loans0.41 %0.58 %0.54 %0.57 %0.61 %
NPAs to total loans plus OREO and repossessed assets0.48 %0.66 %0.66 %0.71 %0.71 %
NPAs to total assets0.34 %0.46 %0.46 %0.49 %0.50 %
Allowance for credit losses on loans to nonaccrual loans293.09 %221.92 %245.16 %246.02 %247.45 %
62

Table 10 Nonperforming Assets (continued)
 ($ in Thousands)Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Accruing loans 30-89 days past due
PPP$1,475 $$83 $568 $— 
Commercial and industrial167 1,085 632 1,229 258 
Commercial real estate — owner occupied— 198 163 30 47 
Commercial and business lending1,642 1,284 878 1,827 306 
Commercial real estate — investor5,484 — 616 17,021 391 
Real estate construction— — 1,620 — 117 
Commercial real estate lending5,484 — 2,236 17,021 509 
Total commercial7,126 1,284 3,114 18,848 814 
Residential mortgage 5,315 4,957 6,169 7,095 5,015 
Auto finance2,906 949 11 10 38 
Home equity 2,961 4,207 3,711 2,931 2,472 
Other consumer1,365 1,232 2,307 1,272 1,036 
Total consumer12,547 11,345 12,198 11,308 8,562 
Total accruing loans 30-89 days past due$19,673 $12,629 $15,312 $30,156 $9,376 
Potential problem loans
PPP(b)
$47 $54 $2,000 $4,160 $8,695 
Asset-based lending & equipment finance(c)
19,813 19,057 17,697 — — 
Commercial and industrial84,785 93,396 120,561 124,990 77,064 
Commercial real estate — owner occupied38,628 24,005 26,723 21,241 17,828 
Commercial and business lending143,273 136,513 166,981 150,391 103,587 
Commercial real estate — investor132,635 130,792 106,138 78,962 71,613 
Real estate construction82 200 21,408 19,187 16,465 
Commercial real estate lending132,717 130,992 127,546 98,150 88,078 
Total commercial275,990 267,505 294,527 248,541 191,665 
Residential mortgage 3,297 3,032 2,214 2,374 3,024 
Home equity 188 156 165 171 1,558 
Total consumer3,486 3,188 2,379 2,546 4,583 
Total potential problem loans$279,475 $270,693 $296,905 $251,087 $196,248 
(a) Primarily closed branches and other bank operated real estate facilities, pending disposition.
(b) The Corporation’s policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a
     risk profile similar to pass rated loans.
(c) Periods prior to March 31, 2022 do not include equipment finance.
Nonaccrual loans: Nonaccrual loans are considered to be one indicator of potential future loan losses. See Note 7 Loans of the notes to consolidated financial statements for additional nonaccrual loan disclosures. See also sections Credit Risk and Allowance for Credit Losses on Loans.
Accruing loans past due 90 days or more: Loans past due 90 days or more but still accruing interest are classified as such where the underlying loans are both well secured (the collateral value is sufficient to cover principal and accrued interest) and are in the process of collection.
Restructured loans: Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See also Note 7 Loans of the notes to consolidated financial statements for additional restructured loans disclosures.
Potential problem loans: The level of potential problem loans is another predominant factor in determining the relative level of risk in the loan portfolio and in determining the appropriate level of the ACLL. Potential problem loans are generally defined by management to include loans rated as substandard by management that are collectively evaluated (not nonaccrual loans or accruing TDRs); however, there are circumstances present to create doubt as to the ability of the borrower to comply with present repayment terms. The decision of management to include performing loans in potential problem loans does not necessarily mean that the Corporation expects losses to occur, but that management recognizes a higher degree of risk associated with these loans.
OREO: Management actively seeks to ensure OREO properties held are monitored to minimize the Corporation’s risk of loss.

63

Allowance for Credit Losses on Loans
Credit risks within the loan portfolio are inherently different for each loan type. Credit risk is controlled and monitored through the use of lending standards, a thorough review of potential borrowers, and ongoing review of loan payment performance. Active asset quality administration, including early problem loan identification and timely resolution of problems, aids in the management of credit risk and the minimization of loan losses. Credit risk management for each loan type is discussed in the section entitled Credit Risk. See Note 7 Loans of the notes to consolidated financial statements for additional disclosures on the ACLL.
To assess the appropriateness of the ACLL, the Corporation focuses on the evaluation of many factors, including but not limited to: evaluation of facts and issues related to specific loans, management’s ongoing review and grading of the loan portfolio, credit report refreshes, consideration of historical loan loss and delinquency experience on each portfolio category, trends in past due and nonaccrual loans, the level of potential problem 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 Corporation utilized the Moody's baseline forecast for May 2022 which was compared to the June 2022 forecast for material updates, in the allowance model. The forecast is applied over a 2 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 7 Loans of the notes to consolidated financial statements for additional ACLL disclosures. Table 5 provides information on loan growth and period end loan composition, Table 10 provides additional information regarding NPAs, and Table 11 and Table 12 provide additional information regarding activity in the ACLL.
The loan segmentation used in calculating the ACLL at June 30, 2022 and December 31, 2021 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 historical loss 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.

64

Table 11 Allowance for Credit Losses on Loans
YTDQuarter Ended
($ in Thousands)Jun 30,
2022
Jun 30,
2021
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Allowance for Loan Losses
Balance at beginning of period$280,015 $383,702 $279,058 $280,015 $290,997 $318,811 $352,938 
Provision for loan losses(1,000)(55,500)2,000 (3,000)(4,500)(20,000)(29,500)
Charge offs(3,819)(20,855)(1,791)(2,028)(8,869)(10,929)(7,681)
Recoveries5,576 11,464 1,504 4,072 2,387 3,115 3,054 
Net (charge offs) recoveries1,757 (9,391)(287)2,044 (6,482)(7,814)(4,628)
Balance at end of period$280,771 $318,811 $280,771 $279,058 $280,015 $290,997 $318,811 
Allowance for Unfunded Commitments
Balance at beginning of period$39,776 $47,776 $38,776 $39,776 $41,276 $45,276 $50,776 
Provision for unfunded commitments(3,000)(2,500)(2,000)(1,000)(1,500)(4,000)(5,500)
Balance at end of period$36,776 $45,276 $36,776 $38,776 $39,776 $41,276 $45,276 
Allowance for credit losses on loans$317,547 $364,087 $317,547 $317,835 $319,791 $332,273 $364,087 
Provision for credit losses on loans(4,000)(58,000)— (4,000)(6,000)(24,000)(35,000)
Net loan (charge offs) recoveries
Asset-based lending & equipment finance(a)
$— $294 $— $— $27 $91 $261 
Commercial and industrial1,410 2,406 (444)1,854 (6,669)(9,149)1,072 
Commercial real estate — owner occupied106 
Commercial and business lending1,417 2,709 (440)1,857 (6,638)(8,951)1,338 
Commercial real estate — investor— (11,475)— — 109 181 (5,589)
Real estate construction33 52 32 52 18 23 
Commercial real estate lending33 (11,423)32 162 199 (5,566)
Total commercial1,450 (8,715)(439)1,889 (6,476)(8,752)(4,228)
Residential mortgage508 (332)220 288 (6)300 (223)
Auto finance(10)12 (14)(11)
Home equity776 681 461 315 546 959 337 
Other consumer(967)(1,038)(516)(451)(534)(329)(517)
Total consumer306 (676)151 155 (6)938 (400)
Total net (charge offs) recoveries$1,757 $(9,391)$(287)$2,044 $(6,482)$(7,814)$(4,628)
Ratios
Allowance for credit losses on loans to total loans1.20 %1.52 %1.20 %1.30 %1.32 %1.41 %1.52 %
Allowance for credit losses on loans to net charge offs (annualized)N/M19.2xN/MN/M12.4x10.7x19.6x
Loan Evaluation Method for ACLL
Individually evaluated for impairment$10,068 $13,625 $15,194 $19,913 $29,352 
Collectively evaluated for impairment307,480 304,210 304,597 312,359 334,734 
     Total ACLL$317,547 $317,835 $319,791 $332,273 $364,087 
Loan Balance
Individually evaluated for impairment$81,457 $110,445 $115,643 $131,484 $141,817 
Collectively evaluated for impairment26,413,241 24,421,481 24,109,306 23,490,189 23,805,719 
     Total loan balance$26,494,698 $24,531,926 $24,224,949 $23,621,673 $23,947,536 
N/M = Not Meaningful
(a) Periods prior to March 31, 2022 do not include equipment finance.
65

Table 12 Annualized Net (Charge Offs) Recoveries(a)
YTDQuarter Ended
(In basis points)Jun 30,
2022
Jun 30,
2021
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Net loan (charge offs) recoveries
Asset-based lending & equipment finance(b)
— 46 — — 36 87 
Commercial and industrial(2)10 (34)(47)
Commercial real estate — owner occupied— — — — — — 
Commercial and business lending(2)(29)(40)
Commercial real estate — investor— (54)— — (52)
Real estate construction— — — 
Commercial real estate lending— (37)— — (36)
Total commercial(11)(1)(17)(23)(11)
Residential mortgage(1)— (1)
Auto finance— 27 (1)(9)43 15 
Home equity27 21 32 22 36 61 21 
Other consumer(66)(72)(70)(62)(71)(44)(72)
Total consumer(2)— (2)
Total net (charge offs) recoveries(8)— (11)(13)(8)
(a) Annualized ratio of net charge offs to average loans by loan type.
(b) Periods prior to March 31, 2022 do not include equipment finance.
Notable Contributions to the Change in the Allowance for Credit Losses on Loans
Potential problem loans decreased $17 million, or 6%, from December 31, 2021, and increased $83 million, or 42%, from June 30, 2021. The decrease from December 31, 2021 was primarily driven by commercial and industrial and real estate construction lending, partially offset by increases in CRE-investor and CRE-owner occupied lending. The increase from June 30, 2021 was primarily driven by increases in CRE-investor, CRE-owner occupied, and asset-based lending. These increases were partially offset by a decrease in real estate construction lending. See Table 10 for additional information regarding potential problem loans.
Total nonaccrual loans decreased $22 million, or 17%, from December 31, 2021, and decreased $39 million, or 26%, from June 30, 2021. The decrease from December 31, 2021 was primarily due to decreases in CRE-investor and commercial and industrial lending. The decrease from June 30, 2021 was primarily driven by decreases in commercial and industrial, CRE-investor, and residential mortgage lending. See Note 7 Loans of the notes to consolidated financial statements and Table 10 for additional disclosures on the changes in asset quality.
YTD net charge offs (recoveries) decreased $11 million from June 30, 2021 to a recovery position, primarily driven by no charge offs in the CRE-investor portfolio in the current period, combined with net recoveries in the commercial and industrial, home equity, and residential mortgage portfolios. See Table 11 and Table 12 for additional information on the activity in the ACLL.
Management believes the level of ACLL to be appropriate at June 30, 2022.
66

Deposits and Customer Funding
The following table summarizes the composition of our deposits and customer funding:
Table 13 Period End Deposit and Customer Funding Composition
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
 ($ in Thousands)Amount% of
Total
Amount% of
Total
Amount% of
Total
Amount% of
Total
Amount% of
Total
Noninterest-bearing demand$8,085,702 28 %$8,315,699 29 %$8,504,077 30 %$8,170,105 29 %$7,999,143 29 %
Savings4,708,156 16 %4,661,232 16 %4,410,198 15 %4,278,453 15 %4,182,651 15 %
Interest-bearing demand6,789,722 24 %6,616,767 23 %7,019,782 25 %6,407,844 23 %5,969,285 22 %
Money market7,769,415 27 %7,522,797 26 %7,185,111 25 %7,583,978 27 %7,640,825 28 %
Time deposits1,223,581 %1,288,913 %1,347,262 %1,410,886 %1,472,395 %
   Total deposits$28,576,577 100 %$28,405,409 100 %$28,466,430 100 %$27,851,266 100 %$27,264,299 100 %
Customer funding(a)
296,440 299,301 354,142 322,081 226,160 
Total deposits and customer funding$28,873,017 $28,704,710 $28,820,572 $28,173,348 $27,490,459 
Network transaction deposits(b)
$891,902 $762,680 $766,965 $929,174 $871,603 
Net deposits and customer funding (total deposits and customer funding, excluding network transaction deposits)
27,981,114 27,942,029 28,053,607 27,244,174 26,618,856 
Time deposits of more than $250,000180,705 209,208 215,100 223,075 232,035 
(a) Securities sold under agreement to repurchase and commercial paper.
(b) Included above in interest-bearing demand and money market.
Total deposits, which are the Corporation's largest source of funds, increased $110 million from December 31, 2021, and increased $1.3 billion, or 5%, from June 30, 2021.
Time deposits decreased $124 million, or 9%, from December 31, 2021, and decreased $249 million, or 17%, from June 30, 2021, due to the maturity of time deposits.
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 percentage of total assets and liquid asset levels. Strong capital ratios, credit quality, and core earnings are also essential to maintaining cost effective access to wholesale funding markets. At June 30, 2022, the Corporation was in compliance with its internal liquidity objectives and had sufficient asset-based liquidity to meet its obligations under a stressed scenario.
The Corporation maintains diverse and readily available liquidity sources, including:
Investment securities, which are an important tool to the Corporation’s liquidity objective and can be pledged or sold to enhance liquidity, if necessary. See Note 6 Investment Securities of the notes to consolidated financial statements for additional information on the Corporation's investment securities portfolio, including pledged investment securities.
Pledgeable loan collateral, which is eligible collateral with both the Federal Reserve Bank and the FHLB under established lines of credit. Based on the amount of collateral pledged, the FHLB established a collateral value from which the Bank may draw advances, and issue letters of credit in favor of public fund depositors, against the collateral. As of June 30, 2022, the Bank had $1.3 billion available for future funding. The Federal Reserve Bank also establishes a collateral value of assets to support borrowings from the discount window. As of June 30, 2022, the Bank had $645 million available for discount window borrowings.
A $200 million Parent Company commercial paper program, of which $23 million was outstanding as of June 30, 2022.
67

Dividends and service fees from subsidiaries, as well as the proceeds from issuance of capital, are also funding sources for the Parent Company.
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 from time to time offer up to $2.0 billion aggregate principal amount of its unsecured senior and subordinated notes.
Credit ratings relate to the Corporation’s ability to issue debt securities and the cost to borrow money, and should not be viewed as an indication of future stock performance or a recommendation to buy, sell, or hold securities. Adverse changes in these factors could result in a negative change in credit ratings and impact not only the ability to raise funds in the capital markets but also the cost of these funds. The credit ratings of the Parent Company and the Bank at June 30, 2022 are displayed below:
Table 14 Credit Ratings
 Moody’sS&P
Bank short-term depositsP-1-
Bank long-term deposits/issuerA1BBB+
Corporation commercial paperP-2-
Corporation long-term senior debt/issuerBaa1BBB
OutlookNegativeStable
For the six months ended June 30, 2022, net cash provided by operating and financing activities was $489 million and $2.0 billion, respectively, while net cash used in investing activities was $2.7 billion, for a net decrease in cash and cash equivalents of $158 million since year-end 2021. At June 30, 2022, assets of $37.2 billion increased $2.1 billion, or 6%, from year-end 2021, primarily due to loan growth. On the funding side, deposits of $28.6 billion increased $110 million from year-end 2021 and FHLB advances increased $1.6 billion to fund loan growth.
For the six months ended June 30, 2021, net cash provided by operating, investing, and financing activities was $230 million, $249 million, and $577 million, respectively, for a net increase in cash and cash equivalents of $1.1 billion from year-end 2020. At June 30, 2021, assets of $34.2 billion increased $733 million, or 2%, from year-end 2020, primarily driven by a $1.0 billion increase in interest-bearing deposits in other financial institutions, partially offset by a $504 million, or 2%, decrease in loans. On the funding side, deposits of $27.3 billion increased $782 million, or 3%, from year-end 2020 related to deposit inflows from government stimulus programs.
Quantitative and Qualitative Disclosures about Market Risk
Market risk and interest rate risk are managed centrally. Market risk is the potential for loss arising from adverse changes in the fair value of fixed-income securities, equity securities, other earning assets and derivative financial instruments as a result of changes in interest rates or other factors. Interest rate risk is the potential for reduced net interest income resulting from adverse changes in the level of interest rates. As a financial institution that engages in transactions involving an array of financial products, the Corporation is exposed to both market risk and interest rate risk. In addition to market risk, interest rate risk is measured and managed through a number of methods. The Corporation uses financial modeling simulation techniques that measure the sensitivity of future earnings due to changing rate environments to measure interest rate risk.
Policies established by the Corporation’s ALCO and approved by the Board of Directors are intended to limit these risks. The Board has delegated day-to-day responsibility for managing market and interest rate risk to ALCO. The primary objectives of market risk management are to minimize any adverse effect that changes in market risk factors may have on net interest income and to offset the risk of price changes for certain assets recorded at fair value.
68

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. No interest rate limit breaches occurred during the first six months of 2022.
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 NII at risk, interest rate sensitive EAR, and MVE at risk. The Corporation’s interest rate risk profile is such that a higher or steeper yield curve adds to income while a flatter yield curve is relatively neutral, and a lower or inverted yield curve generally has a negative impact on earnings. The Corporation's EAR profile is asset sensitive at June 30, 2022.
For further discussion of the Corporation's interest rate risk and corresponding key assumptions, see the Interest Rate Risk section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Corporation’s 2021 Annual Report on Form 10-K.
The sensitivity analysis included below is measured as a percentage change in NII and 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.
Table 15 Estimated % Change in Rate Sensitive Earnings at Risk Over 12 Months
Jun 30, 2022Dec 31, 2021
 Dynamic ForecastStatic ForecastDynamic ForecastStatic Forecast
Gradual Rate Change
100 bp increase in interest rates5.4 %4.1 %5.0 %5.4 %
200 bp increase in interest rates10.8 %8.2 %10.6 %11.7 %
At June 30, 2022, the MVE profile indicates a decrease in net balance sheet value due to instantaneous upward changes in rates.
Table 16 Market Value of Equity Sensitivity
Jun 30, 2022Dec 31, 2021
Instantaneous Rate Change
100 bp increase in interest rates(3.0)%(1.8)%
200 bp increase in interest rates(6.0)%(3.7)%
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 NII, 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.
In 2014, the Financial Stability Oversight Council and Financial Stability Board raised concerns about the reliability and robustness of LIBOR and called for the development of alternative interest rate benchmarks. The ARRC, through authority from the Federal Reserve, has selected the SOFR as the alternative rate and developed a paced transition plan which addresses the risk that LIBOR may not exist beyond June 2023.
As part of the Corporation's efforts to limit exposure to LIBOR based loans, performing borrowers can modify or refinance their residential mortgage loans to a fixed interest rate or an adjustable rate mortgage tied to the one-year treasury adjusted to a constant maturity of one year with an appropriate margin. This provides the Bank and borrower with greater certainty around the loan structure. The Bank has not booked a LIBOR adjustable rate mortgage since the first quarter of 2020.
Additionally, the Corporation has been monitoring its volume of commercial credits and derivatives tied to LIBOR. In 2021, the Corporation began prioritizing SOFR, Prime and Ameribor as the preferred alternative reference rates and ceased booking LIBOR based commitments after the end of 2021. Loans with a maturity after June 2023 are being reviewed and monitored to
69

ensure there is appropriate fallback language in place when LIBOR is no longer published. Loans with a maturity date before that time should naturally mature and be re-underwritten with an appropriate alternative index rate.
Contractual Obligations, Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities
The following table summarizes significant contractual obligations and other commitments at June 30, 2022, at those amounts contractually due to the recipient, including any unamortized premiums or discounts, hedge basis adjustments, or other similar carrying value adjustments.
Table 17 Contractual Obligations and Other Commitments
($ in Thousands)Note ReferenceOne Year
or Less
One to
Three Years
Three to
Five Years
Over
Five Years
Total
Time deposits$987,686 $191,715 $44,175 $$1,223,581 
Short-term funding9705,620 — — — 705,620 
FHLB advances92,050,140 400,633 605,227 202,039 3,258,039 
Other long-term funding984 249,485 181 69 249,820 
Operating leases186,112 10,106 7,219 6,191 29,627 
Total$3,749,642 $851,939 $656,802 $208,304 $5,466,687 
The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include derivatives and lending-related commitments. Additional discussion of these instruments can be found in Note 10 Derivative and Hedging Activities and Note 12 Commitments, Off-Balance Sheet Arrangements, Legal Proceedings, Regulatory Matters and Operational Matters of the notes to consolidated financial statements, respectively. The Corporation also has obligations under its retirement plans as described in Note 14 Retirement Plans of the notes to the consolidated financial statements.
Capital
Management actively reviews capital strategies for the Corporation and each of its subsidiaries in light of perceived business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, stability of earnings, changing competitive forces, economic condition in markets served, and strength of management. At June 30, 2022, the capital ratios of the Corporation and its banking subsidiaries were in excess of regulatory minimum requirements. The Corporation’s capital ratios are summarized in the following table.
Table 18 Capital Ratios
YTDQuarter Ended
 ($ in Thousands)
Jun 30,
2022
Jun 30,
2021
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Risk-based Capital(a)
CET1$2,896,675 $2,837,789 $2,808,289 $2,779,943 $2,790,392 
Tier 1 capital3,089,593 3,030,579 3,001,074 2,972,622 3,080,015 
Total capital3,506,864 3,448,108 3,570,026 3,550,556 3,655,411 
Total risk-weighted assets29,863,512 27,780,642 27,242,735 26,303,703 26,072,881 
Modified CECL transitional amount67,276 67,276 89,702 92,822 100,776 
CET1 capital ratio9.70 %10.22 %10.31 %10.57 %10.70 %
Tier 1 capital ratio10.35 %10.91 %11.02 %11.30 %11.81 %
Total capital ratio11.74 %12.41 %13.10 %13.50 %14.02 %
Tier 1 leverage ratio8.87 %8.86 %8.83 %8.81 %9.23 %
Selected Equity and Performance Ratios
Total stockholders’ equity / assets10.63 %11.30 %11.47 %11.60 %12.03 %
Dividend payout ratio(b)
38.46 %31.58 %35.71 %41.67 %40.82 %35.71 %32.14 %
Return on average assets0.92 %1.10 %0.97 %0.86 %0.87 %1.01 %1.06 %
Annualized noninterest expense / average assets2.02 %2.07 %2.04 %2.00 %2.06 %2.03 %2.04 %
(a) The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The Corporation follows Basel III, subject to certain
    transition provisions. 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) Ratio is based upon basic earnings per common share.
See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, for information on the shares repurchased during the second quarter of 2022.
70

Non-GAAP Measures
Table 19 Non-GAAP Measures
YTDQuarter Ended
($ in Thousands)Jun 30,
2022
Jun 30,
2021
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Selected equity and performance ratios(a)(b)(c)
Tangible common equity / tangible assets7.23 %7.68 %7.86 %7.92 %8.04 %
Return on average equity8.20 %9.08 %8.85 %7.55 %7.62 %8.63 %8.84 %
Return on average tangible common equity12.27 %13.86 %13.29 %11.26 %11.34 %12.97 %13.44 %
Return on average CET111.03 %12.87 %11.77 %10.27 %10.50 %12.11 %12.51 %
Return on average tangible assets0.97 %1.16 %1.03 %0.90 %0.92 %1.07 %1.12 %
Average stockholders' equity / average assets11.17 %12.10 %11.02 %11.33 %11.43 %11.74 %12.01 %
Tangible common equity reconciliation(a)
Common equity$3,766,187 $3,755,092 $3,831,658 $3,801,766 $3,819,852 
Goodwill and other intangible assets, net(1,158,680)(1,160,883)(1,163,085)(1,165,288)(1,167,491)
Tangible common equity$2,607,507 $2,594,209 $2,668,573 $2,636,478 $2,652,361 
Tangible assets reconciliation(a)
Total assets$37,235,990 $34,955,900 $35,104,253 $34,439,666 $34,152,625 
Goodwill and other intangible assets, net(1,158,680)(1,160,883)(1,163,085)(1,165,288)(1,167,491)
Tangible assets$36,077,310 $33,795,017 $33,941,167 $33,274,378 $32,985,134 
Average tangible common equity and average CET1 reconciliation(a)
Common equity$3,768,621 $3,769,463 $3,743,919 $3,793,597 $3,810,668 $3,807,083 $3,788,237 
Goodwill and other intangible assets, net(1,161,114)(1,171,679)(1,160,035)(1,162,204)(1,164,394)(1,166,589)(1,168,774)
Tangible common equity2,607,507 2,597,783 2,583,884 2,631,393 2,646,273 2,640,494 2,619,464 
Modified CECL transitional amount67,276 110,778 67,276 67,276 90,528 97,420 105,961 
Accumulated other comprehensive loss (income)125,566 (4,218)170,253 80,383 18,513 (5,320)(3,111)
Deferred tax assets, net39,241 40,260 39,072 39,411 39,640 39,893 39,915 
Average CET1$2,839,591 $2,744,603 $2,860,485 $2,818,464 $2,794,954 $2,772,487 $2,762,229 
Average tangible assets reconciliation(a)
Total assets$35,467,853 $34,033,816 $35,732,583 $35,200,182 $35,016,159 $34,759,489 $34,379,647 
Goodwill and other intangible assets, net(1,161,114)(1,171,679)(1,160,035)(1,162,204)(1,164,394)(1,166,589)(1,168,774)
Tangible assets$34,306,740 $32,862,137 $34,572,548 $34,037,978 $33,851,765 $33,592,900 $33,210,873 
Adjusted net income reconciliation(b)
Net income$161,086 $185,307 $86,824 $74,262 $76,877 $88,809 $91,007 
Other intangible amortization, net of tax3,304 3,329 1,652 1,652 1,652 1,652 1,652 
Adjusted net income$164,390 $188,637 $88,476 $75,914 $78,529 $90,461 $92,659 
Adjusted net income available to common equity reconciliation(b)
Net income available to common equity$155,336 $175,226 $83,949 $71,387 $74,002 $84,655 $86,131 
Other intangible amortization, net of tax3,304 3,329 1,652 1,652 1,652 1,652 1,652 
Adjusted net income available to common equity$158,640 $178,555 $85,601 $73,039 $75,654 $86,307 $87,784 
Efficiency ratio reconciliation(d)
Federal Reserve efficiency ratio 63.51 %66.26 %61.53 %65.71 %67.36 %65.43 %66.81 %
Fully tax-equivalent adjustment(1.05)%(1.02)%(0.98)%(1.13)%(1.10)%(1.01)%(1.07)%
Other intangible amortization(0.80)%(0.85)%(0.76)%(0.84)%(0.82)%(0.83)%(0.87)%
Fully tax-equivalent efficiency ratio61.68 %64.40 %59.80 %63.76 %65.46 %63.61 %64.88 %
Provision for unfunded commitments adjustment0.53 %0.47 %0.67 %0.37 %0.55 %1.48 %2.14 %
Asset gains, net adjustment0.21 %0.59 %0.34 %0.05 %0.24 %1.29 %— %
Acquisitions, branch sales, and initiatives— %0.12 %— %— %(1.43)%(0.91)%0.01 %
Adjusted efficiency ratio62.42 %65.58 %60.82 %64.18 %64.82 %65.46 %67.02 %
(a) Tangible common equity and tangible assets exclude goodwill and other intangible assets, net.
(b) Adjusted net income and adjusted net income available to common equity, which are used in the calculation of return on average tangible assets and return on average tangible common equity, respectively, add back other intangible amortization, net of tax.
(c) These capital measurements are used by management, regulators, investors, and analysts to assess, monitor and compare the quality and composition of our capital with the capital of other financial services companies.
(d) The efficiency ratio as defined by the Federal Reserve guidance is noninterest expense (which includes the provision for unfunded commitments) divided by the sum of net interest income plus noninterest income, excluding investment securities gains (losses), net. The fully tax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net. The adjusted efficiency ratio is noninterest expense, which excludes the provision for unfunded commitments, other intangible amortization, acquisition related costs, and announced initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net, asset gains (losses), net, and gain on sale of branches, net. Management believes the adjusted efficiency ratio is a meaningful measure as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and provides a better measure as to how the Corporation is managing its expenses by adjusting for acquisition related costs, provision for unfunded commitments, asset gains (losses), net, branch sales, and announced initiatives.
71

Sequential Quarter Results
The Corporation reported net income of $87 million for the second quarter of 2022, compared to net income of $74 million for the first quarter of 2022. Net income available to common equity was $84 million for the second quarter of 2022, or $0.56 for both basic and diluted earnings per common share. Comparatively, net income available to common equity for the first quarter of 2022 was $71 million, or $0.48 for basic and $0.47 for diluted earnings per common share (see Table 1).
Fully tax-equivalent net interest income for the second quarter of 2022 was $221 million, $29 million, or 15%, higher than the first quarter of 2022. The net interest margin in the second quarter of 2022 was up 29 bp to 2.71%. The increase in net interest income and net interest margin was due to higher interest on earning assets due to the Federal Reserve increasing their federal funds target rate. Average earning assets increased $625 million, or 2%, to $32.6 billion in the second quarter of 2022. Average loans increased $1.3 billion, or 5%. On the funding side, FHLB advances increased $813 million, or 50%, and total interest-bearing deposits decreased $294 million, or 1% (see Table 2).
The provision for credit losses had a negligible release for the second quarter of 2022, compared to a release of $4 million for the first quarter of 2022 (see Table 11). See discussion under sections: Provision for Credit Losses, Nonperforming Assets, and Allowance for Credit Losses on Loans.
Noninterest income for the second quarter of 2022 was $75 million, up $1 million, or 1%, from the first quarter of 2022, driven by higher bank owned life insurance policy redemptions and card-based fees, partially offset by lower mortgage banking, net income (see Table 3).
Noninterest expense for the second quarter of 2022 was $181 million, up $8 million, or 5%, from the first quarter of 2022, driven by higher personnel expenses (see Table 4).
For the second quarter of 2022, the Corporation recognized income tax expense of $23 million, compared to income tax expense of $19 million for the first quarter of 2022. See Income Taxes section for a detailed discussion on income taxes.
Comparable Quarter Results
The Corporation reported net income of $87 million for the second quarter of 2022, compared to $91 million for the second quarter of 2021. Net income available to common equity was $84 million for the second quarter of 2022, or $0.56 for both basic and diluted earnings per common share. Comparatively, net income available to common equity for the second quarter of 2021 was $86 million, or $0.56 for both basic and diluted earnings per share (see Table 1).
Fully tax-equivalent net interest income for the second quarter of 2022 was $221 million, $37 million, or 20%, higher than the second quarter of 2021. The net interest margin between the comparable quarters was up 34 bp, to 2.71% in the second quarter of 2022. The increase in net interest income and net interest margin was due to higher interest on earning assets due to the Federal Reserve increasing their federal funds target rate. Average earning assets increased $1.6 billion, or 5%, to $32.6 billion in the second quarter of 2022 as average loans increased $1.3 billion, or 5%, and investments and other increased by $287 million, or 4%. On the funding side, average interest-bearing deposits increased $636 million, or 3%, from the second quarter of 2021, due to increases in lower cost deposits, partially offset by a decrease in higher cost deposits. Average short and long-term funding increased $769 million, or 32% (see Table 2), primarily driven by an increase in FHLB advances.
The provision for credit losses had a negligible release for the second quarter of 2022, compared to a release of $35 million for the second quarter of 2021, as a result of improving credit quality within the loan portfolio (see Table 11). See discussion under sections: Provision for Credit Losses, Nonperforming Assets, and Allowance for Credit Losses on Loans.
Noninterest income for the second quarter of 2022 was $75 million, up $2 million, or 3%, compared to the second quarter of 2021, primarily due to higher capital markets, net (see Table 3).
Noninterest expense increased $7 million, or 4%, to $181 million for the second quarter of 2022 primarily due to higher personnel expenses (see Table 4).
The Corporation recognized income tax expense of $23 million for the second quarter of 2022, compared to an income tax expense of $22 million for the second quarter of 2021. See section Income Taxes for a detailed discussion on income taxes.
72

Segment Review
As discussed in Note 15 Segment Reporting of the notes to consolidated financial statements, the Corporation’s reportable segments have been determined based upon its internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer, and the distribution of those products and services are similar. The reportable segments are Corporate and Commercial Specialty; Community, Consumer and Business; and Risk Management and Shared Services.
Table 20 Selected Segment Financial Data
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in Thousands)20222021% Change20222021% Change
Corporate and Commercial Specialty
Total revenue(a)
$145,191 $131,643 10 %$282,139 $267,803 %
Provision for credit losses12,246 15,716 (22)%24,900 32,395 (23)%
Noninterest expense56,847 53,902 %113,406 109,349 %
Income tax expense13,919 11,214 24 %26,232 23,106 14 %
Net income62,179 50,812 22 %117,601 102,953 14 %
Average earning assets15,083,176 14,024,769 %14,751,601 14,037,418 %
Average loans15,079,176 14,023,611 %14,748,739 14,036,707 %
Average deposits8,752,899 8,646,551 %9,080,190 8,590,041 %
Average allocated capital (Average CET1)(b)
1,515,244 1,406,646 %1,468,386 1,401,915 %
Return on average allocated capital(b)
16.46 %14.49 %197 bp16.15 %14.81 %134 bp
Community, Consumer, and Business
Total revenue$139,757 $122,437 14 %$261,341 $256,432 %
Provision for credit losses4,924 5,279 (7)%9,580 11,207 (15)%
Noninterest expense105,139 101,735 %203,802 202,086 %
Income tax expense6,236 3,239 93 %10,071 9,059 11 %
Net income23,459 12,185 93 %37,888 34,080 11 %
Average earning assets9,784,918 9,379,435 %9,481,879 9,496,153 — %
Average loans9,784,918 9,379,435 %9,481,879 9,496,153 — %
Average deposits18,544,542 17,825,851 %18,479,893 17,469,726 %
Average allocated capital (Average CET1)(b)
593,296 543,810 %554,137 556,549 — %
Return on average allocated capital(b)
15.86 %8.99 %N/M13.79 %12.35 %144 bp
Risk Management and Shared Services
Total revenue$6,656 $(1,123)N/M$10,339 $(33)N/M
Provision for credit losses(17,172)(55,999)(69)%(38,472)(101,610)(62)%
Noninterest expense19,434 18,839 %37,505 38,386 (2)%
Income tax expense3,209 8,027 (60)%5,710 14,917 (62)%
Net income1,186 28,010 (96)%5,597 48,274 (88)%
Average earning assets7,758,257 7,635,545 %8,081,928 7,154,263 13 %
Average loans534,069 695,568 (23)%520,924 747,114 (30)%
Average deposits873,301 998,231 (13)%847,656 1,079,669 (21)%
Average allocated capital (Average CET1)(b)
751,945 811,773 (7)%817,067 786,139 %
Return on average allocated capital(b)
(0.90)%11.43 %N/M(0.04)%9.80 %N/M
Consolidated Total
Total revenue(a)
$291,604 $252,957 15 %$553,819 $524,202 %
Return on average allocated capital(b)
11.77 %12.51 %-74 bp11.03 %12.87 %-184 bp
N//M = Not meaningful
(a) For the six months ended June 30, 2021, the Corporation recognized a $2 million pre-tax gain on sale of Whitnell.
(b) The Federal Reserve establishes capital adequacy requirements for the Corporation, including CET1. For segment reporting purposes, the ROCET1 reflects return on average allocated CET1. The ROCET1 for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the
preferred stock dividends.
73

Notable Changes in Segment Financial Data
The Corporate and Commercial Specialty segment consists of lending and deposit solutions to larger businesses, developers, not-for-profits, municipalities, and financial institutions, and the support to deliver, fund, and manage such banking solutions. In addition, this segment provides a variety of investment, fiduciary, and retirement planning products and services to individuals and small to mid-sized businesses.
Total revenue increased $14 million from the three and six months ended June 30, 2021 as a result of loan growth and increasing interest rates.
Provision for credit losses decreased $7 million from the six months ended June 30, 2021 and decreased $3 million from the three months ended June 30, 2021 as a result of improving credit quality.
Average loans increased $712 million from the six months ended June 30, 2021 and increased $1.1 billion from the three months ended June 30, 2021, primarily driven by growth within the commercial and business lending portfolio.
Average deposits increased $490 million from the six months ended June 30, 2021 and increased $106 million from the three months ended June 30, 2021, primarily driven by increases in low-cost interest bearing deposits.
The Community, Consumer, and Business segment consists of lending and deposit solutions to individuals and small to mid-sized businesses.
Total revenue increased $5 million from the six months ended June 30, 2021 and increased $17 million from the three months ended June 30, 2021 as a result of receiving FTP credit for providing funding for the Corporation's loan growth.
Provision for credit losses decreased $2 million from the six months ended June 30, 2021 as a result of improving credit quality.
Average loans increased $405 million from the three months ended June 30, 2021, driven by growth in auto finance lending within the consumer portfolio.
Average deposits increased $1.0 billion from the six months ended June 30, 2021 and increased $719 million from the three months ended June 30, 2021 as a result of customers holding higher deposit balances in every category except time deposits.
The Risk Management and Shared Services segment includes key shared Corporate functions, Parent Company activity, intersegment eliminations, and residual revenues and expenses.
Revenues increased $10 million from the six months ended June 30, 2021 and increased $8 million from the three months ended June 30, 2021, primarily driven by increased interest income as a result of higher investment income due to the current rate environment.
Provision for credit losses increased $63 million from the six months ended June 30, 2021 and increased $39 million from the three months ended June 30, 2021, driven by larger provision releases during 2021.
Average earning assets increased $928 million from the six months ended June 30, 2021 and increased $123 million from the three months ended June 30, 2021, driven by investment purchases throughout the past year.
Average loans decreased $226 million from the six months ended June 30, 2021 and decreased $161 million from the three months ended June 30, 2021, primarily driven by decreases in commercial and business lending.
Average deposits decreased $232 million from the six months ended June 30, 2021 and decreased $125 million from the three months ended June 30, 2021, primarily driven by decreases in network deposits.
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. Estimates that are particularly susceptible to significant change include the determination of the ACLL and MSRs valuation. A discussion of these estimates can be found in the Critical Accounting Estimates section in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Corporation’s 2021 Annual Report on Form 10-K. There has been one change in the Corporation's application of critical
74

accounting estimates since December 31, 2021 driven by the irrevocable election to account for MSRs under the fair value measurement methodology.
Mortgage Servicing Rights Valuation: We have a significant investment in MSRs. Our MSRs are primarily retained from sales in the secondary market of residential mortgage loans we have originated or purchased from correspondent lenders. MSRs are initially recognized and subsequently carried at fair value. Changes in fair value are recognized in earnings as they occur through mortgage banking, net on the consolidated statements of income.

MSRs are not traded in active markets. The fair value of MSRs is determined by discounting the projected cash flows. Certain significant assumptions and estimates used in valuing MSRs are based on current market sources including projected prepayment speeds, assumed servicing costs, ancillary income, costs to service delinquent loans, costs of foreclosure, and discount rates with option-adjusted spreads. Assumptions used to value our MSRs are considered significant unobservable inputs and represent our best estimate of assumptions that market participants would use to value this asset. A separate third party model is used to estimate prepayment speeds based on interest rates, housing turnover rates, estimated loan curtailment, anticipated defaults and other relevant factors. The prepayment model is updated periodically for changes in market conditions and adjusted to better correlate with actual performance of our servicing portfolio. The option-adjusted spread is added to the discount rate across all interest rate paths generated in a stochastic process, which will properly capture the embedded options for MSRs cash flows.

The assumptions used in this model are primarily based on mortgage interest rates. Evaluation of the effect of a change in one assumption without considering the effect of that change on other assumptions is not meaningful. Considering all related assumptions, we expect a 50 basis point increase in the yield curve to increase the fair value of our servicing rights by $4 million and decrease the value of the hedge by $3 million. Likewise, we expect a 50 basis point decrease in the yield curve to decrease the fair value of our servicing rights by $4 million and increase the value of our hedge by $4 million.
Recent Developments
On July 26, 2022, the Corporation’s Board of Directors declared a regular quarterly cash dividend of $0.20 per common share, payable on September 15, 2022 to shareholders of record at the close of business on September 1, 2022. The Board of Directors also declared a regular quarterly cash dividend of $0.3671875 per depositary share on Associated's 5.875% Series E Perpetual Preferred Stock, payable on September 15, 2022 to shareholders of record at the close of business on September 1, 2022. The Board of Directors also declared a regular quarterly cash dividend of $0.3515625 per depositary share on Associated's 5.625% Series F Perpetual Preferred Stock, payable on September 15, 2022 to shareholders of record at the close of business on September 1, 2022.
ITEM 3.    Quantitative and Qualitative Disclosures About Market Risk
Information required by this item is set forth in Item 2 under the captions Quantitative and Qualitative Disclosures about Market Risk and Interest Rate Risk.
75

ITEM 4.    Controls and Procedures
The Corporation maintains disclosure controls and procedures as required under Rule 13a-15 promulgated under the Securities Exchange Act of 1934, as amended, that are designed to ensure that information required to be disclosed in the Corporation's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Corporation’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As of June 30, 2022, the Corporation’s management carried out an evaluation, under the supervision and with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures. Based on the foregoing, its Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective as of June 30, 2022.
No changes were made to the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act of 1934) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.
76

PART II - OTHER INFORMATION

ITEM 1.Legal Proceedings
The information required by this item is set forth in Part I, Item 1 under Note 12 Commitments, Off-Balance Sheet Arrangements, Legal Proceedings, Regulatory Matters and Operational Matters of the notes to consolidated financial statements.

ITEM 1A.Risk Factors
The following risk factors supplement the Risk Factors described in the Corporation’s 2021 Annual Report on Form 10-K and in the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and should be read in conjunction therewith.
Changes and instability in economic conditions, geopolitical matters and financial markets, including a contraction of economic activity, could adversely impact our business, results of operations and financial condition. Our success depends, to a certain extent, upon global, domestic and local economic and political conditions, as well as governmental monetary policies. Conditions such as changes in interest rates, money supply, levels of employment and other factors beyond our control may have a negative impact on economic activity. Any contraction of economic activity, including an economic recession, may adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings. In particular, interest rates are highly sensitive to many factors that are beyond our control, including global, domestic and local economic conditions and the policies of various governmental and regulatory agencies and, specifically, the Federal Reserve. Since March of 2022, the FOMC of the Federal Reserve has raised the target range for the federal funds rate on three separate occasions, resulting in an increase in the target range from 0.00% - 0.25% that prevailed in early March of 2022 to 1.50% - 1.75% at the June 2022 FOMC meeting. At the July 2022 FOMC meeting, the target rate was increased again to 2.25% - 2.50%. The FOMC—citing specifically the hardships caused by the ongoing Russia-Ukraine conflict, continued global supply chain disruptions and imbalances, and increased inflationary pressure—has signaled that it anticipates additional increases in the target range will be appropriate. Increases to prevailing interest rates could influence not only the interest we receive on loans and investments and the amount of interest we pay on deposits and borrowings, but such changes could also affect (i) our ability to originate loans and obtain deposits; (ii) the fair value of our financial assets and liabilities; and (iii) the average duration of our mortgage portfolio and other interest-earning assets.
The tightening of the Federal Reserve’s monetary policies, including repeated and aggressive increases in target range for the federal funds rate as noted above as well as the conclusion of the Federal Reserve’s tapering of asset purchases, together with ongoing economic and geopolitical instability, increases the risk of an economic recession. Although forecasts have varied, many economists are projecting that U.S. economic growth will slow and inflation will remain elevated in the coming quarters, potentially resulting in a contraction of U.S. gross domestic output by 2023 if not earlier. Any such downturn, especially domestically and in the regions in which we operate, may adversely affect our asset quality, deposit levels, loan demand and results of operations.
As a result of the economic and geopolitical factors discussed above, financial institutions also face heightened credit risk, among other forms of risk. Of note, because we have a significant amount of real estate loans, decreases in real estate values could adversely affect the value of property used as collateral, which, in turn, can adversely affect the value of our loan and investment portfolios. The Office of the Comptroller of the Currency recently reported that although residential real estate values have continued to rise in many markets, the rate of appreciation has slowed in recent quarters. Adverse economic developments, specifically including inflation-related impacts, may have a negative effect on the ability of our borrowers to make timely repayments of their loans or to finance future home purchases. Moreover, while CRE values have stabilized as demand has returned to pre-pandemic levels in several markets, the outlook for CRE remains dependent on the broader economic environment and, specifically, how major subsectors respond to a rising interest rate environment and higher prices for commodities, goods and services. In each case, credit performance over the medium- and long-term is susceptible to economic and market forces and therefore forecasts remain uncertain. Instability and uncertainty in the commercial and residential real estate markets, as well as in the broader commercial and retail credit markets, could have a material adverse effect on our financial condition and results of operations.
77

ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds
During the second quarter of 2022, the Corporation repurchased approximately $884,000 of common stock, or approximately 43,000 shares, all of which were repurchases related to tax withholding on equity compensation with no open market purchases during the quarter. The repurchase details are presented in the table below:
Common Stock Purchases
Total Number  of
Shares Purchased(a)
Average Price
Paid per Share
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans
or Programs(b)
Period
April 1, 2022 - April 30, 202239,864 $20.61 — — 
May 1, 2022 - May 31, 20222,525 19.96 — — 
June 1, 2022 - June 30, 2022614 18.93 — — 
Total43,003 $20.55  4,361,770 
(a) During the second quarter of 2022, the Corporation repurchased 43,003 common shares for minimum tax withholding settlements on equity compensation. These purchases do not count against the maximum value of shares remaining available for purchase under the Board of Directors' authorization.
(b) At June 30, 2022, there remained $80 million authorized to be repurchased in the aggregate. Approximately 4.4 million shares of common stock remained available to be repurchased under this Board authorization given the closing share price on June 30, 2022.
Repurchases under Board authorized repurchase programs are subject to any necessary regulatory approvals and other limitations and may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchases, or similar facilities.


78


ITEM 6.Exhibits
(a)    Exhibits:
Exhibit (101), Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
Exhibit (104), The cover page from the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 has been formatted in Inline XBRL (Inline Extensible Business Reporting Language) and contained in Exhibits in 101.

79


Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ASSOCIATED BANC-CORP
(Registrant)
Date: July 28, 2022/s/ Andrew J. Harmening
Andrew J. Harmening
President and Chief Executive Officer
Date: July 28, 2022/s/ Christopher J. Del Moral-Niles
  Christopher J. Del Moral-Niles
Chief Financial Officer
Date: July 28, 2022/s/ Tammy C. Stadler
Tammy C. Stadler
Chief Accounting Officer

80
Associated Banc (NYSE:ASB)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Associated Banc Charts.
Associated Banc (NYSE:ASB)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Associated Banc Charts.