Table of ~~the individually and collectively evaluated loans by portfolio segment at December 31, 2019, was as follows:~~Contents

Allowance for loan losses Loans
($ in Thousands) Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Individually evaluated for impairment Collectively evaluated for impairment
Acquired and accounted for under ASC 310-30(a)
Total loans
Commercial and industrial $ 12,010 $ 79,123 $ 91,133 $ 62,035 $ 7,292,217 $ 342 $ 7,354,594
Commercial real estate — owner occupied 19 10,265 10,284 1,676 909,010 579 911,265
Commercial and business lending 12,029 89,388 101,417 63,711 8,201,227 921 8,265,858
Commercial real estate — investor 15 40,498 40,514 4,633 3,789,755 129 3,794,517
Real estate construction 67 24,848 24,915 477 1,420,416 7 1,420,900
Commercial real estate lending 82 65,346 65,429 5,110 5,210,171 136 5,215,417
Total commercial 12,111 154,734 166,846 68,821 13,411,398 1,057 13,481,275
Residential mortgage 2,740 14,220 16,960 35,554 8,100,958 469 8,136,980
Home equity 1,190 9,737 10,926 4,422 847,577 26 852,025
Other consumer 125 6,514 6,639 1,247 349,912 0 351,159
Total consumer 4,055 30,471 34,525 41,223 9,298,447 495 9,340,164
Total loans $ 16,165 $ 185,205 $ 201,371 $ 110,043 $ 22,709,845 $ 1,552 $ 22,821,440

~~(a) Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality."~~

Loans Acquired in Acquisitions

Loans acquired in a business combination after January 1, 2020 are recorded in accordance with ASC Topic 326. See Note 2 ~~Acquisitions and Dispositions~~ for more information on loans acquired in a business combination. After January 1, 2020, acquired loans were segregated into two types:

•PCD loans are loans demonstrating more than insignificant credit deterioration since origination and are accounted for with ASC 326-30. Under this guidance, the credit mark on acquired assets grosses up the allowance for loan losses and the amortized cost of the loan.

•Non-PCD loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not show evidence of credit deterioration since origination.

~~Loans acquired in a business combination prior to January 1, 2020 were recorded at estimated fair value on their purchase date without a carryover of the related~~ The allowance for loan ~~losses. Prior to January 1, 2020, acquired~~losses on these loans ~~were segregated into two types:~~is recorded through provision for credit losses on the consolidated statements of income at acquisition.

•~~Performing~~PCD loans ~~were~~are loans demonstrating more than insignificant credit deterioration and are accounted for in accordance with ASC Topic ~~310-20 "Nonrefundable Fees~~326-30. Under this guidance, the credit mark on acquired assets grosses up the ACLL and ~~Other Costs" as these loans do not have evidence~~the amortized cost of ~~credit deterioration since origination.~~

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•~~Nonperforming loans were accounted for in accordance with ASC Topic 310-30 as they displayed significant credit deterioration since origination.~~the loan.

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.

The Corporation conducted its most recent annual impairment testing in May ~~2020,~~2021, utilizing a ~~quantitative~~qualitative assessment. Factors that management considered in this assessment included macroeconomic conditions, industry and market considerations, overall financial performance of ~~goodwill impairment which included determining~~ the ~~estimated fair value of~~Corporation and each reporting unit ~~utilizing an equally weighted combination of discounted cash flow~~(both current and ~~market-based approaches,~~projected), changes in management strategy, and ~~comparing that fair value to each reporting unit’s carrying amount (including goodwill). An impairment loss is recognized if~~changes in the composition or carrying amount of ~~a reporting unit exceeds its fair value.~~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 ~~the quantitative assessment,~~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 ~~based on the~~a step one quantitative analysis ~~no impairment~~ was not required. There have been no events since the May ~~2020~~2021 impairment testing that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in ~~2019~~2020 or the first ~~nine~~six months of ~~2020.~~

Each of the valuation techniques employed by the Company requires significant assumptions. Depending upon the specific approach, assumptions are made regarding the economic environment, expected net interest margins, growth rates, discount rates for cash flows, asset quality metrics, control premiums, and price-to-forward earnings multiples. Changes to any one of these assumptions could result in significantly different results. A sustained decline in the Company’s expected future cash flows or estimated growth rates, or a prolonged decline in the price of the Company’s common stock due to further deterioration in the economic environment, may necessitate additional interim testing, which could result in an impairment charge to goodwill in future reporting periods.2021.

At ~~September~~both June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Corporation had goodwill of $1.1 ~~billion and $1.2 billion, respectively. There~~billion. During the first quarter of 2021, there was ~~an increase~~a reduction of ~~$13~~$4 million ~~relating to the First Staunton acquisition, and an $82 million reduction~~of goodwill related to the ~~disposition~~sale of ~~ABRC.~~Whitnell.

Other Intangible Assets

The Corporation has other intangible assets that are amortized, consisting of CDIs ~~other intangibles,~~ and MSRs. ~~Other intangibles decreased $19 million from December 31, 2019, primarily driven by a $17 million decrease due to the disposition of ABRC.~~ For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:

($ in Thousands) Nine Months Ended September 30, 2020 Year Ended December 31, 2019
Core deposit intangibles
Gross carrying amount at the beginning of the year $ 80,730 $ 58,100
Additions during the period 7,379 22,630
Accumulated amortization (19,003) (12,456)
Net book value $ 69,107 $ 68,274
Amortization during the year $ 6,547 $ 7,130
Other intangibles
Gross carrying amount at the beginning of the year $ 38,970 $ 44,887
Additions during the period 200 0
Reductions due to sale (17,435) (217)
Accumulated amortization (20,335) (24,643)
Net book value $ 1,400 $ 20,027
Amortization during the year $ 1,393 $ 2,818


($ in Thousands)	Six Months Ended June 30, 2021		Year Ended December 31, 2020
Core deposit intangibles
Gross carrying amount at the beginning of the year	$	88,109	$	80,730
Additions during the period	0		7,379
Accumulated amortization	(25,611)		(21,205)
Net book value	$	62,498	$	66,904
Amortization during the year	$	4,405	$	8,749
Other intangibles
Gross carrying amount at the beginning of the year	$	2,000	$	38,970
Additions during the period	0		200
Reductions due to sale	(1,317)		(17,435)
Accumulated amortization	(683)		(20,385)
Net book value	$	0	$	1,350
Amortization during the year	$	33	$	1,443

Mortgage Servicing Rights

The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. MSRs are amortized in proportion to and over the period of estimated net servicing income and assessed for impairment at each reporting date.

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The Corporation evaluates its MSRs asset for impairment at minimum on a quarterly basis. Impairment is 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 fall, prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. During the first nine months of 2020, the Corporation recognized temporary impairment of $18 million driven by decreasing interest rates. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries. 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 and the MSRs valuation allowance is as follows:

($ in Thousands) Nine Months Ended September 30, 2020 Year Ended December 31, 2019
Mortgage servicing rights
Mortgage servicing rights at beginning of period $ 67,607 $ 68,433
Additions from acquisition 1,357 0
Additions 11,495 11,606
Amortization (16,416) (12,432)
Mortgage servicing rights at end of period $ 64,043 $ 67,607
Valuation allowance at beginning of period $ (302) $ (239)
(Additions) recoveries, net (18,481) (63)
Valuation allowance at end of period $ (18,782) $ (302)
Mortgage servicing rights, net $ 45,261 $ 67,306
Fair value of mortgage servicing rights $ 45,303 $ 72,532
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 8,218,839 $ 8,488,969
Mortgage servicing rights, net to servicing portfolio 0.55 % 0.79 %
Mortgage servicing rights expense(a)
$ 34,897 $ 12,494


($ in Thousands)	Six Months Ended June 30, 2021			Year Ended December 31, 2020
Mortgage servicing rights
Mortgage servicing rights at beginning of period	$	59,967		$	67,607
Additions from acquisition	0			1,357
Additions	7,488			13,667
Amortization	(11,352)			(22,664)
Mortgage servicing rights at end of period	$	56,103		$	59,967
Valuation allowance at beginning of period	$	(18,006)		$	(302)
(Additions) recoveries, net	10,239			(17,704)
Valuation allowance at end of period	$	(7,768)		$	(18,006)
Mortgage servicing rights, net	$	48,335		$	41,961
Fair value of mortgage servicing rights	$	48,378		$	41,990
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)	$	7,149,619		$	7,743,956
Mortgage servicing rights, net to servicing portfolio	0.68		%	0.54		%
Mortgage servicing rights expense(a)	$	1,113		$	40,369

(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 are based on existing asset balances, the current interest rate environment, and prepayment speeds as of ~~September~~June 30, ~~2020.~~2021. The actual amortization 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 Intangibles Other Intangibles Mortgage Servicing Rights
Three Months Ending December 31, 2020 $ 2,203 $ 50 $ 4,245
2021 8,811 200 15,333
2022 8,811 200 10,935
2023 8,811 200 8,030
2024 8,811 200 6,095
2025 8,811 200 4,764
Beyond 2025 22,849 350 14,640
Total Estimated Amortization Expense $ 69,107 $ 1,400 $ 64,043


($ in Thousands)	Core Deposit Intangibles		Mortgage Servicing Rights
Six Months Ending December 31, 2021	$	4,405	$	5,834
2022	8,811		11,451
2023	8,811		8,823
2024	8,811		6,926
2025	8,811		5,512
2026	8,811		4,440
Beyond 2026	14,038		13,118
Total Estimated Amortization Expense	$	62,498	$	56,103

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Note 9 Short and Long-Term Funding

The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), and long-term funding (funding with original contractual maturities greater than one year)~~, and FHLB advances (funding based on original contractual maturities)~~:

($ in Thousands) September 30, 2020 December 31, 2019
Short-Term Funding
Federal funds purchased $ 7,575 $ 362,000
Securities sold under agreements to repurchase 147,754 71,097
Federal funds purchased and securities sold under agreements to repurchase 155,329 433,097
Commercial paper 50,987 32,016
Total short-term funding $ 206,316 $ 465,113
Long-Term Funding
Bank senior notes, at par, due 2021 $ 300,000 $ 300,000
Corporation subordinated notes, at par, due 2025 250,000 250,000
PPPLF 1,022,217 0
Finance leases 1,165 2,209
Capitalized costs (1,964) (2,866)
Total long-term funding 1,571,418 549,343
Total short and long-term funding, excluding FHLB advances $ 1,777,735 $ 1,014,456
FHLB Advances
Short-term FHLB advances $ 0 $ 520,000
Long-term FHLB advances 1,706,763 2,660,967
Total FHLB advances $ 1,706,763 $ 3,180,967
Total short and long-term funding $ 3,484,498 $ 4,195,422


($ in Thousands)	June 30, 2021		December 31, 2020
Short-Term Funding
Federal funds purchased	$	45	$	7,070
Securities sold under agreements to repurchase	170,374		185,901
Federal funds purchased and securities sold under agreements to repurchase	170,419		192,971
Commercial paper	55,785		59,346
Total short-term funding	$	226,205	$	252,317
Long-Term Funding

Bank senior notes, at par, due 2021	$	300,000	$	300,000
Corporation subordinated notes, at par, due 2025	250,000		250,000

Finance leases	93		1,128
Capitalized costs	(1,069)		(1,663)

FHLB advances	1,619,826		1,632,723
Total long-term funding	2,168,851		2,182,188




Total short and long-term funding	$	2,395,055	$	2,434,505

Securities Sold Under Agreements to Repurchase ~~("Repurchase Agreements")~~

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). ~~See Note 11 for additional disclosures on balance sheet offsetting.~~

The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. As of ~~September~~June 30, ~~2020,~~2021, the Corporation pledged agency mortgage-related securities with a fair value of ~~$246~~$260 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities.

The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019~~2020 are presented in the following table:

Remaining Contractual Maturity of the Agreements
($ in Thousands) Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total
September 30, 2020
Repurchase agreements
Agency mortgage-related securities $ 147,754 $ 0 $ 0 $ 0 $ 147,754
Total $ 147,754 $ 0 $ 0 $ 0 $ 147,754
December 31, 2019
Repurchase agreements
Agency mortgage-related securities $ 71,097 $ 0 $ 0 $ 0 $ 71,097
Total $ 71,097 $ 0 $ 0 $ 0 $ 71,097


	Remaining Contractual Maturity of the Agreements
($ in Thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
June 30, 2021
Repurchase agreements
Agency mortgage-related securities	$	170,374	$	0	$	0	$	0	$	170,374
Total	$	170,374	$	0	$	0	$	0	$	170,374
December 31, 2020
Repurchase agreements
Agency mortgage-related securities	$	185,901	$	0	$	0	$	0	$	185,901
Total	$	185,901	$	0	$	0	$	0	$	185,901

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Long-Term Funding

Senior Notes

In August 2018, the Bank issued $300 million of senior notes, due August 2021, and callable July 2021. The senior notes have a fixed coupon interest rate of 3.50% and were issued at a discount. The Bank redeemed all of the senior notes on July 13, 2021, the initial redemption date under the terms of the notes.

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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.

~~Paycheck Protection Program Liquidity Facility~~

In connection with the funding of PPP loans, the Corporation has utilized the PPPLF. These borrowings from the Federal Reserve Bank match the term of the underlying loan, which has been pledged to secure the borrowings, with original terms of ~~two~~ or ~~five~~ years. The rate of this funding is 0.35%. The Corporation began submitting PPP forgiveness applications to the SBA on behalf of our customers on September 14, 2020. Forgiveness payments from the SBA began to be received early in the fourth quarter. The Corporation believes we will receive a modest amount of forgiveness payments yet in 2020, with the majority to be received in 2021, therefore the expected maturity is less than the contractual terms of ~~two~~ or ~~five~~ ~~years.~~

Finance Leases

In connection with the construction of a new ~~branches~~branch in Oshkosh, ~~and Eau Claire,~~ Wisconsin, the Corporation entered into a land ~~leases~~lease with ~~options~~the option to purchase the underlying land for a fixed price, which the Corporation now expects to exercise. The finance ~~leases have~~lease has a fixed interest ~~rates~~rate of ~~approximately 1.00%~~1.07%. See Note 18 for additional disclosure regarding the Corporation’s leases.

~~FHLB Advances~~

At September 30, 2020, the Corporation had $1.7 billion of FHLB advances, down $1.5 billion, or 46%, from December 31, 2019. This is primarily due to the Corporation's prepayment of $950 million in long-term FHLB advances in the third quarter of 2020. As a result, the Corporation incurred a $45 million loss on the prepayment. In addition, short-term FHLB advances decreased $520 million from December 31, 2019.

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 ~~$75~~$73 million and $72 million of investment securities as collateral at ~~September~~June 30, ~~2020,~~2021, and ~~pledged $57 million of investment securities as collateral at~~ December 31, ~~2019.~~2020, respectively. At ~~September~~June 30, ~~2020,~~2021, the Corporation posted ~~$30~~$28 million of cash collateral compared to ~~$14~~$31 million at December 31, ~~2019.~~2020.

Federal regulations require the Corporation to clear all LIBOR 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

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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.

~~Fair Value Hedges of Interest Rate Risk~~

The Corporation is exposed to changes in the fair value of certain of its pools of prepayable fixed-rate assets due to changes in benchmark interest rates. The Corporation used interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involved the payment of fixed-rate amounts to a counterparty in exchange for the Corporation receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk were recognized in interest income. During the fourth quarter of 2019, the Corporation terminated the outstanding fair value hedges.

Derivatives to Accommodate Customer Needs

The Corporation ~~also~~ 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 commodity prices. 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 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

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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: Commodity contracts are entered into primarily for the benefit of commercial customers seeking to manage their exposure to fluctuating commodity prices. The Corporation mitigates its risk by then entering into an offsetting commodity derivative contract.

Mortgage Derivatives

Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net.

The following table presents the total notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019.~~2020. 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 ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019.~~2020. 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.


	June 30, 2021								December 31, 2020
	Asset				Liability				Asset				Liability
($ in Thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value
Not designated as hedging instruments
Interest rate-related instruments	$	3,716,697	$	125,879	$	3,716,697	$	23,115	$	3,639,679	$	192,518	$	3,639,679	$	25,680
Foreign currency exchange forwards	476,479		3,747		465,165		3,556		411,292		4,909		398,890		4,836
Commodity contracts	33,320		9,593		33,519		9,393		87,547		12,486		83,214		11,155
Mortgage banking(a)	266,193		6,543		397,000		430		226,818		9,624		335,500		2,046

Gross derivatives before netting			$	145,762			$	36,494			$	219,537			$	43,716
Less: Legally enforceable master netting agreements	1,456				1,456				1,936				1,936
Less: Cash collateral pledged/received	534				25,000				10,879				25,625
Total derivative instruments, after netting	$	143,772			$	10,039			$	206,722			$	16,155

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September 30, 2020 December 31, 2019
Asset Liability Asset Liability
($ in Thousands) Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value
Not designated as hedging instruments
Interest rate-related instruments $ 3,731,752 $ 225,912 $ 3,731,752 $ 28,960 $ 3,029,877 $ 77,024 $ 3,029,877 $ 13,073
Foreign currency exchange forwards 431,862 4,710 422,645 4,563 272,636 4,226 264,653 4,048
Commodity contracts 132,055 25,935 127,597 24,476 255,089 20,528 255,165 19,624
Mortgage banking(a)(b)
171,871 7,888 264,000 0 255,291 2,527 263,000 710
Gross derivatives before netting $ 264,445 $ 57,999 $ 104,305 $ 37,455
Less: Legally enforceable master netting agreements 2,524 2,524 10,410 10,410
Less: Cash collateral pledged/received 24,837 28,363 1,408 11,365
Total derivative instruments, after netting $ 237,084 $ 27,112 $ 92,487 $ 15,680

(a) Mortgage derivative assets include interest rate lock commitments and mortgage derivative liabilities include forward commitments.

~~(b) Includes $108 thousand forward commitment fair value.~~

The Corporation terminated its $500 million fair value hedge during the fourth quarter of 2019. At ~~September~~June 30, ~~2020,~~2021, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was ~~$674~~$486 million and is included in loans ~~and investment securities, available for sale, at fair value~~ on the consolidated balance sheets. This amount includes $4$2 million of hedging adjustments on the discontinued hedging relationships.

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The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019:~~2020:


	Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Three Months Ended June 30,								Six Months Ended June 30,
	2021				2020				2021				2020
($ in Thousands)	Interest Income		Other Income (Expense)		Interest Income		Other Income (Expense)		Interest Income		Other Income (Expense)		Interest Income		Other Income (Expense)
Total amounts of income and expense line items presented on the consolidated statements of income in which the effects of the fair value hedge is recorded	$	(352)	$	0	$	(542)	$	0	$	(837)	$	0	$	(864)	$	(262)
The effects of fair value hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedged items	(352)		0		(542)		0		(837)		0		(864)		(262)

Location and Amount of Gain or (Loss) Recognized in Income on
Fair Value and Cash Flow Hedging Relationships
Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
($ in Thousands) Interest Income Other Income (Expense) Interest Income Other Income (Expense) Interest Income Other Income (Expense) Interest Income Other Income (Expense)
Total amounts of income and expense line items presented on the consolidated statements of income in which the effects of the fair value hedge is recorded $ (481) $ 0 $ (59) $ 0 $ (1,345) $ (262) $ 160 $ 0
The effects of fair value hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedged items (481) 0 452 0 (1,345) (262) 6,674 0
Derivatives designated as hedging instruments(a)
0 0 (511) 0 0 0 (6,514) 0

~~(a) Includes net settlements on the derivatives.~~

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 ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019:~~

Consolidated Statements of Income Category of
Gain / (Loss)
Recognized in Income Three Months Ended September 30, Nine Months Ended September 30,
($ in Thousands) 2020 2019 2020 2019
Derivative Instruments
Interest rate-related instruments — customer and mirror, net Capital markets, net $ 507 $ (619) $ (2,648) $ (2,309)
Foreign currency exchange forwards Capital markets, net 49 72 (31) 284
Commodity contracts Capital markets, net (86) 208 555 (2,037)
Interest rate lock commitments (mortgage) Mortgage banking, net (4,948) (2,851) 5,361 (191)
Forward commitments (mortgage) Mortgage banking, net 1,293 1,313 710 1,482

2020:


	Consolidated Statements of Income Category of Gain / (Loss) Recognized in Income	Three Months Ended June 30,				Six Months Ended June 30,
($ in Thousands)		2021		2020		2021		2020
Derivative Instruments
Interest rate-related instruments — customer and mirror, net	Capital markets, net	$	(950)	$	(65)	$	1,989	$	(3,155)
Foreign currency exchange forwards	Capital markets, net	(25)		41		118		(81)
Commodity contracts	Capital markets, net	(512)		(105)		(1,132)		641
Interest rate lock commitments (mortgage)	Mortgage banking, net	(373)		382		(3,081)		10,310
Forward commitments (mortgage)	Mortgage banking, net	4,685		9,679		(1,616)		(582)

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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, commodity contracts to manage commercial customers' exposure to fluctuating commodity prices, 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. 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, commodity, 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 on a net basis, net of cash collateral, 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.

~~Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”)~~

The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. These repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). The right of set-off for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). In addition, the Corporation does not enter into reverse repurchase agreements; therefore, there is no such offsetting to be done with the repurchase agreements. See Note 9 for additional disclosures on repurchase agreements.

The following table presents the interest rate, commodity, and foreign exchange assets and liabilities subject to an enforceable master netting arrangement. The interest, commodity and foreign exchange agreements the Corporation has with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from this table:


	Gross Amounts Recognized		Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets				Net Amounts Presented on the Consolidated Balance Sheets		Gross Amounts Not Offset on the Consolidated Balance Sheets
($ in Thousands)			Derivative Liabilities Offset		Cash Collateral Received						Net Amount
Derivative assets
June 30, 2021	$	1,990	$	(1,456)	$	(534)	$	0	$	0	$	0
December 31, 2020	13,441		(1,936)		(10,879)		626		0		626

	Gross Amounts Recognized		Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets				Net Amounts Presented on the Consolidated Balance Sheets		Gross Amounts Not Offset on the Consolidated Balance Sheets
($ in Thousands)			Derivative Assets Offset		Cash Collateral Pledged						Net Amount
Derivative liabilities
June 30, 2021	$	27,432	$	(1,456)	$	(25,000)	$	977	$	0	$	977
December 31, 2020	27,951		(1,936)		(25,625)		390		0		390

Gross Amounts Recognized Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets Net Amounts Presented on the Consolidated Balance Sheets Investment Securities Received
($ in Thousands) Derivative
Assets Offset Cash Collateral Received Net amount
Derivative assets
September 30, 2020 $ 27,408 $ (2,524) $ (24,837) $ 47 $ 0 $ 47
December 31, 2019 11,864 (10,410) (1,408) 45 0 45
Gross Amounts Recognized Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets Net Amounts Presented on the Consolidated Balance Sheets Investment Securities Pledged
($ in Thousands) Derivative Liabilities Offset Cash Collateral Pledged Net amount
Derivative liabilities
September 30, 2020 $ 31,164 $ (2,524) $ (28,363) $ 277 $ 0 $ 277
December 31, 2019 22,189 (10,410) (11,365) 413 0 413

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Note 12 Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory 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) September 30, 2020 December 31, 2019
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b)
$ 9,582,235 $ 9,024,412
Commercial letters of credit(a)
6,977 7,081
Standby letters of credit(c)
252,292 277,969


($ in Thousands)	June 30, 2021		December 31, 2020
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b)	$	10,274,533	$	10,010,492
Commercial letters of credit(a)	5,779		3,642
Standby letters of credit(c)	251,341		278,798

(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 0
current fair value, or the fair value is based on fees currently charged to enter into similar agreements and was not material at ~~September~~June 30, ~~2020~~2021 or December 31, ~~2019.~~

2020.
(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 ~~$2 million and~~ $3 million for ~~September~~both June 30, ~~2020~~2021 and December 31, ~~2019, respectively,~~2020, as an estimate of the fair value of these financial instruments.

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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) Nine Months Ended September 30, 2020 Year Ended December 31, 2019
Allowance for Unfunded Commitments
Balance at beginning of period $ 21,907 $ 24,336
Cumulative effect of ASU 2016-13 adoption (CECL) 18,690 N/A
Balance at beginning of period, adjusted 40,597 24,336
Provision for unfunded commitments 16,500 (2,500)
Amount recorded at acquisition 179 70
Balance at end of period $ 57,276 $ 21,907

The increase is a result of the Day 1 modified retrospective adjustment of $19 million for the adoption of ASU 2016-13. In addition, during the year, there was a $17 million increase to the allowance for unfunded commitments driven by the expected impact of the COVID-19 pandemic within the economic models used in the new expected credit loss methodology. See Note 3 and Note 7 of the notes to consolidated financial statements for additional information on the adoption of ASU 2016-13 and the allowance for unfunded commitments.


($ in Thousands)	Six Months Ended June 30, 2021		Year Ended December 31, 2020
Allowance for Unfunded Commitments
Balance at beginning of period	$	47,776	$	21,907
Cumulative effect of ASU 2016-13 adoption (CECL)	N/A		18,690
Balance at beginning of period, adjusted	47,776		40,597
Provision for unfunded commitments	(2,500)		7,000
Amount recorded at acquisition	N/A		179
Balance at end of period	$	45,276	$	47,776

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 to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments ~~are~~is recorded in other assets and accrued expenses and other liabilities, respectively, 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, federal and state 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 ~~September~~June 30, ~~2020~~2021 was ~~$285~~$271 million, compared to ~~$248~~$272 million at December 31, ~~2019,~~2020, 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.

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Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of ~~$18~~$16 million and ~~$14~~$12 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and $6$8 million and $4$6 million for the three months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled ~~$274~~$269 million at ~~September~~June 30, ~~2020~~2021 and ~~$234~~$268 million at December 31, ~~2019.~~2020.

The Corporation’s unfunded equity contributions relating to investments in federal and state qualified affordable housing and federal and state historic ~~projects, and new market~~ projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled ~~$147~~$97 million and ~~$123~~$118 million at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

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For the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and the year ended December 31, ~~2019,~~2020, the Corporation did 0t record any impairment related to qualified affordable housing investments.

The Corporation has principal investment commitments to provide capital-based financing to private and public companies through either direct ~~investments~~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 ~~$28~~$23 million and ~~$26~~$25 million at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, 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 ~~does~~intends to vigorously defend against this lawsuit. It is not ~~believe it is presently subject~~possible for management to ~~any legal proceedings~~assess the ~~resolution~~

Table of ~~which would have~~Contents

probability of a material adverse ~~effect on our business, financial condition, operating results~~outcome or ~~cash flows.~~reasonably estimate the amount of any potential loss at this time with respect to this lawsuit.

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.

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.

As a result of make whole requests, the Corporation has repurchased loans with aggregate principal balances of $7$4 million and $2$10 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and the year ended December 31, ~~2019,~~2020, respectively. There were noapproximately $114,000 of loss reimbursement and settlement claims paid for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and there were no such claims ~~were negligible~~ for

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the year ended December 31, ~~2019.~~2020. Make whole requests during ~~2019~~2020 and the first ~~nine~~six months of ~~2020~~2021 generally arose from loans sold during the period of January 1, 2012 to December 31, ~~2019.~~2020. Since January 1, 2012, loans sold totaled ~~$14.0~~$15.3 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of ~~September~~June 30, ~~2020,~~2021, approximately ~~$7.2~~$6.4 billion of these sold loans 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 as of June 30, 2021 and $2 million as of ~~September 30, 2020 and approximately $795,000 as of~~ December 31, ~~2019.~~

2020.

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 ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, there were approximately ~~$47~~$24 million and ~~$39~~$36 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 ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, there were ~~$36~~$29 million and ~~$45~~$33 million, respectively, of such residential mortgage loans with credit risk recourse, upon which there have been negligible historical losses to the Corporation.

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 ~~2019~~2020 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 nonrecurring basis:~~

~~Individually Evaluated Loans:~~ The Corporation individually evaluates loans when a commercial loan relationship is in nonaccrual status or when a commercial and consumer loan relationship has its terms restructured in a TDR or when a loan meets the Corporation's definition of a probable TDR. Prior to January 1, 2020, management considered a loan impaired when it was probable that the Corporation would be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. See Note 7 for additional information regarding the Corporation’s individually evaluated loans.

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The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, aggregated by the level in the fair value hierarchy within which those measurements fall:

($ in Thousands) Fair Value Hierarchy September 30, 2020 December 31, 2019
Assets
Investment securities available for sale
U.S. Treasury securities Level 1 $ 26,650 $ 0
Agency securities Level 2 25,033 0
Obligations of state and political subdivisions (municipal securities) Level 2 474,695 546,160
Residential mortgage-related securities
FNMA / FHLMC Level 2 1,276,463 132,660
GNMA Level 2 407,313 985,139
Commercial mortgage-related securities
FNMA / FHLMC Level 2 21,877 21,728
GNMA Level 2 688,378 1,310,207
Asset backed securities
FFELP Level 2 325,843 263,693
SBA Level 2 9,111 0
Other debt securities Level 2 2,997 3,000
Total investment securities available for sale Level 1 $ 26,650 $ 0
Total investment securities available for sale Level 2 3,231,711 3,262,586
Equity securities with readily determinable fair values Level 1 1,646 1,646
Residential loans held for sale Level 2 130,139 136,280
Interest rate-related instruments(a)
Level 2 225,912 77,024
Foreign currency exchange forwards(a)
Level 2 4,710 4,226
Commodity contracts(a)
Level 2 25,935 20,528
Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 7,888 2,527
Liabilities
Interest rate-related instruments(a)
Level 2 $ 28,960 $ 13,073
Foreign currency exchange forwards(a)
Level 2 4,563 4,048
Commodity contracts(a)
Level 2 24,476 19,624
Forward commitments to sell residential mortgage loans Level 3 0 710


($ in Thousands)	Fair Value Hierarchy	June 30, 2021		December 31, 2020
Assets
Investment securities AFS
U.S. Treasury securities	Level 1	$	124,533	$	26,531
Agency securities	Level 2	14,991		25,038
Obligations of state and political subdivisions (municipal securities)	Level 2	420,609		450,662
Residential mortgage-related securities
FNMA / FHLMC	Level 2	2,057,909		1,461,241
GNMA	Level 2	93,967		235,537

Commercial mortgage-related securities
FNMA / FHLMC	Level 2	95,708		22,904
GNMA	Level 2	289,593		524,756
Asset backed securities
FFELP	Level 2	215,464		327,189
SBA	Level 2	7,573		8,584
Other debt securities	Level 2	3,000		3,000

Total investment securities AFS	Level 1	$	124,533	$	26,531
Total investment securities AFS	Level 2	3,198,813		3,058,910

Equity securities with readily determinable fair values	Level 1	3,187		1,661
Residential loans held for sale	Level 2	160,547		129,158
Interest rate-related instruments(a)	Level 2	125,879		192,518
Foreign currency exchange forwards(a)	Level 2	3,747		4,909

Commodity contracts(a)	Level 2	9,593		12,486


Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	6,543		9,624

Liabilities
Interest rate-related instruments(a)	Level 2	$	23,115	$	25,680
Foreign currency exchange forwards(a)	Level 2	3,556		4,836
Commodity contracts(a)	Level 2	9,393		11,155


Forward commitments to sell residential mortgage loans	Level 3	430		2,046

(a) Figures are presented gross before netting. See Note 10 and Note 11 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the
same counterparty where there is a legally enforceable master netting agreement in place.

The table below presents a rollforward of the consolidated balance sheets amounts for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and the year ended December 31, ~~2019,~~2020, 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 sale Forward commitments to sell residential mortgage loans Total
Balance December 31, 2018 $ 2,208 $ 2,072 $ 140
New production 24,164 (2,367) 26,531
Closed loans / settlements (29,375) (5,968) (23,407)
Other 5,530 6,973 (1,443)
Mortgage derivative gain (loss) 319 (1,362) 1,681
Balance December 31, 2019 $ 2,527 $ 710 $ 1,817
New production $ 59,550 $ (1,790) $ 61,340
Closed loans / settlements (60,000) (14,169) (45,831)
Other 5,703 15,140 (9,437)
Mortgage derivative gain (loss) 5,253 (819) 6,072
Balance September 30, 2020 $ 7,780 $ (108) $ 7,888


($ in Thousands)	Interest rate lock commitments to originate residential mortgage loans held for sale		Forward commitments to sell residential mortgage loans		Total
Balance December 31, 2019	$	2,527	$	710	$	1,817
New production	72,659		(3,505)		76,164
Closed loans / settlements	(76,001)		(12,587)		(63,414)
Other	10,439		17,427		(6,988)
Mortgage derivative gain (loss)	7,097		1,335		5,762

Balance December 31, 2020	$	9,624	$	2,046	$	7,579
New production	$	32,014	$	(1,970)	$	33,984
Closed loans / settlements	(30,061)		3,118		(33,179)
Other	(5,034)		(2,763)		(2,271)
Mortgage derivative gain (loss)	(3,081)		(1,615)		(1,465)

Balance June 30, 2021	$	6,543	$	430	$	6,113

The closing ratio on interest rate lock commitments to originate residential mortgage loans held for sale is a Level 3 measurement, and was 88% at ~~September~~June 30, ~~2020.~~

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2021.

The following table presents the carrying value of equity securities without readily determinable fair values still held as of ~~September~~June 30, ~~2020~~2021 that are measured under the measurement alternative and the related adjustments recorded during the periods

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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 ~~September~~June 30, ~~2020:~~

2021:


($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, ~~2019~~2020	$	13,444
Carrying value changes	0
Additions	546
Sales	(33)
Carrying value as of ~~September~~June 30, ~~2020~~2021	$	~~13,444~~13,958

Cumulative upward carrying value changes between January 1, 2018 and ~~September~~June 30, ~~2020~~2021	$	13,444
Cumulative downward carrying value changes/impairment between January 1, 2018 and ~~September~~June 30, ~~2020~~2021	$	0

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:

Consolidated Statements of Income
Category of Adjustment
Recognized in Income Adjustment Recognized on the Consolidated Statements of Income
($ in Thousands) Fair Value Hierarchy Fair Value
September 30, 2020
Assets
Individually evaluated loans(a)
Level 3 $ 117,451 Provision for credit losses $ (96,856)
OREO(b)
Level 2 10,953 Other noninterest expense (7,339)
Mortgage servicing rights Level 3 45,303 Mortgage banking, net (18,481)
December 31, 2019
Assets
Impaired loans(c)
Level 3 $ 45,792
Provision for credit losses(d)
$ (66,172)
OREO(b)
Level 2 3,565 Other noninterest expense (1,860)
Mortgage servicing rights Level 3 72,532 Mortgage banking, net (63)
Equity securities Level 3 13,444 Investment securities gains (losses), net 13,444

Consolidated Statements of Income
Category of Adjustment
Recognized in Income

($ in Thousands)

Fair Value Hierarchy

Fair Value

Adjustment Recognized on the Consolidated Statements of Income(c)

June 30, 2021

Assets

Individually evaluated loans(a)

Level 3

81,668

Provision for credit losses

(3,230)

OREO(b)

Level 2

14,197

Other noninterest expense / provision for credit losses(d)

4,567

Mortgage servicing rights

Level 3

48,378

Mortgage banking, net

10,239

December 31, 2020

Assets

Individually evaluated loans(a)

Level 3

138,752

Provision for credit losses

97,519

OREO(b)

Level 2

6,125

Other noninterest expense

3,747

Mortgage servicing rights

Level 3

41,990

Mortgage banking, net

(17,704)

(a) Includes probable TDRs which are individually analyzed, net of the related allowance for ~~loan~~credit losses.

(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) ~~Represents individually evaluated impaired loans, net~~Includes the full year impact on the consolidated statements of income
(d) When a property's value is written down at the ~~related allowance for loan losses.~~

~~(d) Represents~~time it is transferred to OREO, the charge off is booked to the provision for credit ~~losses on individually evaluated impaired loans.~~

losses. When a property is already in OREO and subsequently written down, the charge off is booked to other noninterest expense.

Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a nonrecurring basis include the fair value analysis in the goodwill impairment test, and intangible assets and other nonfinancial long-lived assets measured at fair value for impairment assessment.

The Corporation's significant Level 3 measurements which employ unobservable inputs that are readily quantifiable pertain to MSRs and individually evaluated loans.

The table below presents information about these inputs and further discussion is found above:

September 30, 2020 Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average Input Applied
Mortgage servicing rights Discounted cash flow Discount rate 9% - 14% 9%
Mortgage servicing rights Discounted cash flow Constant prepayment rate 14% - 46% 20%
Individually evaluated loans Appraisals / Discounted cash flow Collateral / Discount factor 0% - 42% 37%


June 30, 2021	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Discount rate	9%	-	14%	9%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	9%	-	43%	16%
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	34%	-	53%	38%

4742

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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:

September 30, 2020 December 31, 2019
($ in Thousands) Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value
Financial assets
Cash and due from banks Level 1 $ 401,151 $ 401,151 $ 373,380 $ 373,380
Interest-bearing deposits in other financial institutions Level 1 712,416 712,416 207,624 207,624
Federal funds sold and securities purchased under agreements to resell Level 1 95 95 7,740 7,740
Investment securities held to maturity, net Level 1 999 1,030 999 1,018
Investment securities held to maturity, net Level 2 1,989,870 2,123,351 2,204,084 2,275,447
Investment securities available for sale Level 1 26,650 26,650 0 0
Investment securities available for sale Level 2 3,231,711 3,231,711 3,262,586 3,262,586
Equity securities with readily determinable fair values Level 1 1,646 1,646 1,646 1,646
Equity securities without readily determinable fair values Level 3 13,444 13,444 13,444 13,444
FHLB and Federal Reserve Bank stocks Level 2 168,280 168,280 227,347 227,347
Residential loans held for sale Level 2 130,139 130,139 136,280 136,280
Commercial loans held for sale Level 2 19,360 19,360 15,000 15,000
Loans, net Level 3 24,619,041 24,532,881 22,620,068 22,399,621
Bank and corporate owned life insurance Level 2 679,257 679,257 671,948 671,948
Derivatives (other assets)(a)
Level 2 256,557 256,557 101,778 101,778
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets) Level 3 7,888 7,888 2,527 2,527
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 24,685,695 $ 24,685,695 $ 21,156,261 $ 21,156,261
Brokered CDs and other time deposits(b)
Level 2 2,026,852 2,039,995 2,622,803 2,622,803
Short-term funding(c)
Level 2 206,316 206,316 465,113 465,113
Long-term funding (excluding PPPLF) Level 2 549,201 589,717 549,343 572,873
PPPLF Level 2 1,022,217 1,022,399 0 0
FHLB advances Level 2 1,706,763 1,851,567 3,180,967 3,207,793
Standby letters of credit(d)
Level 2 2,489 2,489 2,710 2,710
Derivatives (accrued expenses and other liabilities)(a)
Level 2 57,999 57,999 36,745 36,745
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities) Level 3 0 0 710 710


		June 30, 2021				December 31, 2020
($ in Thousands)	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value

Financial assets
Cash and due from banks	Level 1	$	406,994	$	406,994	$	416,154	$	416,154
Interest-bearing deposits in other financial institutions	Level 1	1,340,385		1,340,385		298,759		298,759
Federal funds sold and securities purchased under agreements to resell	Level 1	25,000		25,000		1,135		1,135
Investment securities AFS	Level 1	124,533		124,533		26,531		26,531
Investment securities AFS	Level 2	3,198,813		3,198,813		3,058,910		3,058,910
Investment securities HTM, net	Level 1	1,000		1,013		999		1,024
Investment securities HTM, net	Level 2	1,798,835		1,929,470		1,877,939		2,027,852

Equity securities with readily determinable fair values	Level 1	3,187		3,187		1,661		1,661
Equity securities without readily determinable fair values	Level 3	13,958		13,958		13,444		13,444
FHLB and Federal Reserve Bank stocks	Level 2	168,281		168,281		168,280		168,280
Residential loans held for sale	Level 2	160,547		160,547		129,158		129,158

Loans, net	Level 3	23,628,725		23,601,959		24,068,022		24,012,738
Bank and corporate owned life insurance	Level 2	682,709		682,709		679,647		679,647

Derivatives (other assets)(a)	Level 2	139,219		139,219		209,913		209,913
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)	Level 3	6,543		6,543		9,624		9,624

Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	25,791,904	$	25,791,904	$	24,725,451	$	24,725,451
Brokered CDs and other time deposits(b)	Level 2	1,472,395		1,475,846		1,757,030		1,766,200
Short-term funding	Level 2	226,205		226,200		252,317		252,303
FHLB advances	Level 2	1,619,826		1,693,728		1,632,723		1,760,727
Other long-term funding	Level 2	549,024		570,836		549,465		578,233

Standby letters of credit(c)	Level 2	2,549		2,549		2,731		2,731

Derivatives (accrued expenses and other liabilities)(a)	Level 2	36,065		36,065		41,671		41,671
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities)	Level 3	430		430		2,046		2,046

(b) 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 ~~$252~~$251 million at ~~September~~June 30, ~~2020~~2021 and ~~$278~~$279 million at December 31, ~~2019.~~2020. 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 retirement account plan, the 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.

The Huntington branch acquisition closed on June 14, 2019, and the employees gained as a result of the transaction became eligible to participate in the RAP on the same date, with their vesting service credit based on their prior hours of service with Huntington. See Note 2 for additional information on the Huntington branch acquisition.

~~Table of Contents~~

~~The~~ First Staunton acquisition closed on February 14, 2020, and the employees who met the required criteria as a result of the transaction became eligible to participate in the RAP on February 15, 2020, with their vesting service credit based on their prior hours of service with First Staunton. See Note 2 for additional information on the First Staunton acquisition.

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The components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

Three Months Ended September 30, Nine Months Ended September 30,
($ in Thousands) 2020 2019 2020 2019
Components of Net Periodic Benefit Cost
RAP
Service cost $ 1,853 $ 1,598 $ 6,183 $ 5,448
Interest cost 2,124 2,489 6,139 7,314
Expected return on plan assets (6,386) (6,099) (19,196) (18,249)
Amortization of prior service cost (18) (18) (55) (55)
Amortization of actuarial loss (gain) 1,313 230 2,923 360
Total net periodic pension cost $ (1,114) $ (1,800) $ (4,006) $ (5,183)
Postretirement Plan
Interest cost $ 20 $ 26 $ 59 $ 78
Amortization of prior service cost (19) (19) (56) (56)
Amortization of actuarial loss (gain) 0 (1) 0 (3)
Total net periodic benefit cost $ 1 $ 6 $ 2 $ 19


	Three Months Ended June 30,				Six Months Ended June 30,
($ in Thousands)	2021		2020		2021		2020
Components of Net Periodic Benefit Cost
RAP
Service cost	$	2,075	$	2,165	$	4,151	$	4,330
Interest cost	1,623		2,008		3,245		4,015
Expected return on plan assets	(6,430)		(6,405)		(12,861)		(12,810)
Amortization of prior service cost	(18)		(19)		(37)		(38)
Amortization of actuarial loss (gain)	1,050		803		2,100		1,610
Total net periodic pension cost	$	(1,701)	$	(1,449)	$	(3,402)	$	(2,893)







Postretirement Plan
Interest cost	$	13	$	20	$	26	$	39
Amortization of prior service cost	(19)		(19)		(38)		(38)

Total net periodic benefit cost	$	(6)	$	1	$	(12)	$	2

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 0 contributions during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019.~~2020.

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 3 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 ~~2019~~2020 Annual Report on Form 10-K ~~and Note 3 in this Quarterly Report on Form 10-Q,~~ 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) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment and / or ~~repricing~~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

~~Table of Contents~~

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.

A provision for credit ~~provision~~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 ~~allowance~~ACLL model using the methodologies described in ~~Note 3 in this Quarterly~~the Corporation’s 2020 Annual Report on

Table of Contents

Form ~~10-Q.~~10-K. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect 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, loss on prepayment of FHLB advances, and income tax benefits as a result of tax planning strategies)~~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 ~~footnote~~note in the Corporation’s ~~2019~~2020 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. In addition, the Corporation historically offered insurance and risk consulting services. ~~During the second quarter of 2020, the Corporation sold ABRC.~~ 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). ~~All First Staunton and Huntington branch acquisition related costs,~~

Information about the ~~gain on sale of ABRC, the loss on the prepayment of FHLB advances, and the income tax benefit from tax planning strategies are included within the Risk Management and Shared Services segment.~~Corporation’s segments is presented below:


	Corporate and Commercial Specialty
	Three Months Ended June 30,				Six Months Ended June 30,
($ in Thousands)	2021		2020		2021		2020
Net interest income	$	93,366	$	98,824	$	186,527	$	206,577
Net intersegment interest income (expense)	6,394		6,912		13,078		(3,814)
Segment net interest income	99,760		105,736		199,605		202,764
Noninterest income(a)	38,588		35,115		81,619		73,848
Total revenue	138,348		140,851		281,224		276,612
Provision for credit losses	16,429		13,713		33,938		25,885
Noninterest expense	56,404		53,959		114,129		108,264
Income (loss) before income taxes	65,514		73,179		133,157		142,464
Income tax expense (benefit)	11,947		13,724		24,596		26,664
Net income	$	53,568	$	59,456	$	108,560	$	115,800






Allocated goodwill					$	525,836	$	530,144

During the first quarter of 2020, the Corporation reassigned goodwill of approximately $4 million to the Corporate and Commercial Specialty segment from the Community, Consumer and Business segment as a result of a reorganization of the investment and fiduciary businesses. The goodwill reassigned was attributable to the Corporation's acquisition of Whitnell & Co. in 2017. Also effective in the first quarter of 2020, the marketing business unit, formerly part of the Risk Management and Shared Services segment, was reorganized under the Community, Consumer and Business segment.

During the third quarter of 2020, the retirement plan services business unit, formerly part of the Community, Consumer, and Business segment, was reorganized under the Corporate and Commercial Specialty segment. In addition, the oil and gas business unit, formerly part of the Corporate and Commercial Specialty segment, was reorganized under the Risk Management and Shared Services segment as the Corporation's Credit team manages our exposure to the Corporation's higher-leveraged borrowers.


	Community, Consumer, and Business
	Three Months Ended June 30,				Six Months Ended June 30,
($ in Thousands)	2021		2020		2021		2020
Net interest income	$	70,150	$	73,120	$	138,425	$	148,047
Net intersegment interest income (expense)	13,922		14,317		26,797		32,982
Segment net interest income	84,073		87,437		165,223		181,029
Noninterest income	31,660		54,133		77,788		107,483
Total revenue	115,732		141,570		243,011		288,512
Provision for credit losses	4,565		5,429		9,664		10,537
Noninterest expense	98,260		119,715		195,607		233,491
Income (loss) before income taxes	12,907		16,426		37,740		44,483
Income tax expense (benefit)	2,710		3,450		7,925		9,342
Net income	$	10,196	$	12,977	$	29,815	$	35,142






Allocated goodwill					$	579,156	$	577,758

5045

Table of Contents

~~Information about the Corporation’s segments is presented below:~~

Corporate and Commercial Specialty
Three Months Ended September 30, Nine Months Ended September 30,
($ in Thousands) 2020 2019 2020 2019
Net interest income $ 92,033 $ 111,060 $ 298,611 $ 339,222
Net intersegment interest income (expense) 6,937 (12,041) 3,123 (40,863)
Segment net interest income 98,970 99,020 301,734 298,359
Noninterest income 37,405 33,671 111,254 101,135
Total revenue 136,376 132,691 412,987 399,495
Credit provision 15,572 12,248 41,456 37,417
Noninterest expense 52,144 57,946 159,471 174,570
Income (loss) before income taxes 68,660 62,497 212,060 187,508
Income tax expense (benefit) 12,600 11,249 39,461 35,472
Net income $ 56,060 $ 51,248 $ 172,599 $ 152,036
Allocated goodwill $ 530,144 $ 530,144

Community, Consumer, and Business
Three Months Ended September 30, Nine Months Ended September 30,
($ in Thousands) 2020 2019 2020 2019
Net interest income $ 73,644 $ 73,777 $ 221,691 $ 230,476
Net intersegment interest income (expense) 9,231 25,437 42,213 68,930
Segment net interest income 82,875 99,214 263,904 299,406
Noninterest income 32,958 59,934 140,442 171,283
Total revenue 115,833 159,148 404,345 470,688
Credit provision 5,758 4,631 16,296 13,942
Noninterest expense 102,100 118,241 335,591 345,611
Income (loss) before income taxes 7,975 36,277 52,458 111,135
Income tax expense (benefit) 1,675 7,618 11,016 23,338
Net income $ 6,300 $ 28,658 $ 41,442 $ 87,797
Allocated goodwill $ 577,758 $ 646,086


	Risk Management and Shared Services
	Three Months Ended June 30,				Six Months Ended June 30,
($ in Thousands)	2021		2020		2021		2020
Net interest income	$	15,999	$	17,929	$	30,464	$	38,190
Net intersegment interest income (expense)	(20,316)		(21,229)		(39,875)		(29,169)
Segment net interest income	(4,318)		(3,301)		(9,412)		9,021
Noninterest income(b)	3,195		165,242		9,379		171,465
Total revenue	(1,123)		161,941		(32)		180,486
Provision for credit losses	(55,999)		41,858		(101,610)		77,579
Noninterest expense	19,810		9,733		40,086		33,843
Income (loss) before income taxes	35,065		110,350		61,492		69,065
Income tax expense (benefit)	7,823		34,065		14,560		25,451
Net income	$	27,242	$	76,285	$	46,932	$	43,613






Allocated goodwill					$	0	$	0


		Risk Management and Shared Services									Consolidated Total
		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
($ in Thousands)	($ in Thousands)	2020		2019		2020		2019		($ in Thousands)	2021		2020		2021		2020
Net interest income	Net interest income	$	16,472	$	21,528	$	54,662	$	65,834	Net interest income	$	179,515	$	189,872	$	355,416	$	392,814
Net intersegment interest income (expense)	Net intersegment interest income (expense)	(16,167)		(13,396)		(45,336)		(28,067)		Net intersegment interest income (expense)	0		0		0		0
Segment net interest income	Segment net interest income	305		8,131		9,326		37,767		Segment net interest income	179,515		189,872		355,416		392,814
Noninterest income~~(a)~~(b)	Noninterest income~~(a)~~(b)	5,182		7,245		176,646		15,472		Noninterest income~~(a)~~(b)	73,443		254,490		168,786		352,796
Total revenue	Total revenue	5,487		15,376		185,973		53,239		Total revenue	252,957		444,362		524,202		745,610
Credit provision		21,679		(14,879)		99,257		(35,359)
Provision for credit losses										Provision for credit losses	(35,004)		61,000		(58,009)		114,001
Noninterest expense~~(b)~~	Noninterest expense~~(b)~~	73,343		24,743		108,122		70,198		Noninterest expense~~(b)~~	174,475		183,407		349,821		375,598
Income (loss) before income taxes	Income (loss) before income taxes	(89,535)		5,512		(21,407)		18,400		Income (loss) before income taxes	113,487		199,955		232,389		256,012
Income tax expense (benefit)~~(c)~~	Income tax expense (benefit)~~(c)~~	(72,389)		2,080		(47,135)		3,546		Income tax expense (benefit)~~(c)~~	22,480		51,238		47,082		61,457
Net income	Net income	$	(17,146)	$	3,432	$	25,728	$	14,854	Net income	$	91,007	$	148,718	$	185,307	$	194,555

Allocated goodwill	Allocated goodwill					$	0	$	0	Allocated goodwill					$	1,104,992	$	1,107,902


Wisconsin									39-1098068
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)


433 Main Street
Green Bay,	Wisconsin	54301
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, par value $0.01 per share	ASB	~~New York Stock Exchange~~
~~Depositary Shrs, each representing 1/40th intrst in a shr of 6.125% Non-Cum. Perp Pref Stock, Srs C~~	~~ASB PrC~~	New York Stock Exchange
Depositary Shrs, each representing 1/40th intrst in a shr of 5.375% Non-Cum. Perp Pref Stock, Srs D	ASB PrD	New York Stock Exchange
Depositary Shrs, each representing 1/40th intrst in a shr of 5.875% Non-Cum. Perp Pref Stock, Srs E	ASB PrE	New York Stock Exchange
Depositary Shrs, each representing 1/40th intrst in a shr of 5.625% Non-Cum. Perp Pref Stock, Srs F	ASB PrF	New York Stock Exchange


		Page
PART I. Financial Information

	Item 1. Financial Statements (Unaudited):	5

	Consolidated Balance Sheets	5

	Consolidated Statements of Income	6

	Consolidated Statements of Comprehensive Income	7

	Consolidated Statements of Changes in Stockholders’ Equity	8

	Consolidated Statements of Cash Flows	10

	Notes to Consolidated Financial Statements	12

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	5751

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	8677

	Item 4. Controls and Procedures	8678

PART II. Other Information

	Item 1. Legal Proceedings	8779

	Item 1A. Risk Factors	8679

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	8980

	Item 6. Exhibits	9182

	Signatures	9283


ABRC			Associated Benefits & Risk Consulting, the Corporation's insurance division which was sold on June 30, 2020
~~ABS~~			~~Asset Backed Securities~~
~~ACL~~			~~Allowance for Credit Losses on Loans and Investments~~
ACLL			Allowance for Credit Losses on Loans

AFS			Available for Sale
ALCO			Asset / Liability Committee
ARRC			Alternative Reference Rate Committee
ASC			Accounting Standards Codification
Associated / Corporation / our ~~/ us~~ / we			Associated Banc-Corp collectively with all of its subsidiaries and affiliates
Associated Bank / the Bank			Associated Bank, National Association
ASU			Accounting Standards Update

Basel III			International framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity
bp			basis point(s)
CARES Act			Coronavirus Aid, Relief, and Economic Security Act
CDs			Certificates of Deposit
CDIs			Core Deposit Intangibles
CECL			Current Expected Credit Losses
CET1			Common Equity Tier 1

~~CMO~~			~~Collateralized Mortgage Obligation~~
CRA			Community Reinvestment Act
CRE			Commercial Real Estate

EAR			Earnings at Risk
Economic Aid Act			Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

Exchange Act			Securities Exchange Act of 1934, as amended
FASB			Financial Accounting Standards Board
FDIC			Federal Deposit Insurance Corporation
Federal Reserve			Board of Governors of the Federal Reserve System
FFELP			Federal Family Education Loan Program
FHLB			Federal Home Loan Bank
FHLMC			Federal Home Loan Mortgage Corporation
FICO			Fair Isaac Corporation, provider of a broad-based risk score to aid in credit decisions
First Staunton			First Staunton Bancshares, Incorporated
FNMA			Federal National Mortgage Association

~~FOMC~~FTEs			~~Federal Open Market Committee~~Full-time equivalent employees
FTP			Funds Transfer Pricing
GAAP			Generally Accepted Accounting Principles
GNMA			Government National Mortgage Association
GSEs			Government-Sponsored Enterprises
~~Huntington~~HTM			~~The Huntington National Bank, a subsidiary of Huntington Bancshares Incorporated~~Held to Maturity



LIBOR			London Interbank Offered Rate
LTV			Loan-to-Value
~~MBS~~			~~Mortgage-Backed Securities~~
~~MSLP~~			~~Main Street Lending Program~~
MSRs			Mortgage Servicing Rights


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to


ASSOCIATED BANC-CORP
Commonly Used Acronyms and Abbreviations
The following listing provides a reference of common acronyms and abbreviations used throughout the document:


MVE			Market Value of Equity
Net Free Funds			Noninterest-bearing sources of funds
NII			Net Interest Income


NPAs			Nonperforming Assets
~~OCC~~			~~Office of the Comptroller of the Currency~~

OREO			Other Real Estate Owned
Parent Company			Associated Banc-Corp individually
PCD			Purchased Credit Deteriorated
PPP			Paycheck Protection Program
PPPLF			Paycheck Protection Program Liquidity Facility
RAP			Retirement Account Plan - the Corporation's noncontributory defined benefit retirement plan
Repurchase Agreements			Securities sold under agreements to repurchase
Restricted Stock Awards			Restricted common stock and restricted common stock units to certain key employees
Retirement Eligible Colleagues			Colleagues whose retirement meets the early retirement or normal retirement definitions under the applicable equity compensation plan
Rockefeller			Rockefeller Capital Management
S&P			Standard & Poor's
SBA			Small Business Administration
SEC			U.S. Securities and Exchange Commission
Series C Preferred Stock			The Corporation's 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference $1,000 per share
Series D Preferred Stock			The Corporation's 5.375% Non-Cumulative Perpetual Preferred Stock, Series D, liquidation preference $1,000 per share
Series E Preferred Stock			The Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series E, liquidation preference $1,000 per share
Series F Preferred Stock			The Corporation's 5.625% Non-Cumulative Perpetual Preferred Stock, Series F, liquidation preference $1,000 per share
SOFR			Secured Overnight Finance Rate

TDR			Troubled Debt Restructuring
USI			USI Insurance Services LLC
Whitnell			Whitnell & Co.
YTD			Year-to-Date


	September 30, 2020		December 31, 2019
(In Thousands, except share and per share data)	(Unaudited)		(Audited)
Assets
Cash and due from banks	$	401,151	$	373,380
Interest-bearing deposits in other financial institutions	712,416		207,624
Federal funds sold and securities purchased under agreements to resell	95		7,740
Investment securities held to maturity, net, at amortized cost(a)	1,990,870		2,205,083
Investment securities available for sale, at fair value	3,258,360		3,262,586
Equity securities	15,090		15,090
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	168,280		227,347
Residential loans held for sale	130,139		136,280
Commercial loans held for sale	19,360		15,000
Loans	25,003,753		22,821,440
Allowance for loan losses(a)	(384,711)		(201,371)
Loans, net	24,619,041		22,620,068
Bank and corporate owned life insurance	679,257		671,948
Tax credit and other investments	314,066		279,969

Premises and equipment, net	422,222		435,284
Goodwill	1,107,902		1,176,230
Mortgage servicing rights, net	45,261		67,306
Other intangible assets, net	70,507		88,301

Interest receivable	91,612		91,196
Other assets	653,117		506,046
Total assets	$	34,698,746	$	32,386,478
Liabilities and Stockholders' Equity
Noninterest-bearing demand deposits	$	7,489,048	$	5,450,709
Interest-bearing deposits	19,223,500		18,328,355
Total deposits	26,712,547		23,779,064
Federal funds purchased and securities sold under agreements to repurchase	155,329		433,097
Commercial paper	50,987		32,016
PPPLF	1,022,217		0
FHLB advances	1,706,763		3,180,967
Other long-term funding	549,201		549,343

Allowance for unfunded commitments(a)	57,276		21,907
Accrued expenses and other liabilities(a)	398,991		467,961
Total liabilities	30,653,313		28,464,355
Stockholders’ Equity
Preferred equity	353,637		256,716
Common equity
Common stock	1,752		1,752
Surplus	1,717,186		1,716,431
Retained earnings(a)	2,424,992		2,380,867
Accumulated other comprehensive income (loss)	3,995		(33,183)
Treasury stock, at cost	(456,129)		(400,460)
Total common equity	3,691,796		3,665,407
Total stockholders’ equity	4,045,433		3,922,124
Total liabilities and stockholders’ equity	$	34,698,746	$	32,386,478
Preferred shares authorized (par value $1.00 per share)	750,000		750,000
Preferred shares issued and outstanding	364,458		264,458
Common shares authorized (par value $0.01 per share)	250,000,000		250,000,000
Common shares issued	175,216,409		175,216,409
Common shares outstanding	153,551,692		157,171,247


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands, except per share data)	2020		2019		2020		2019
Interest income
Interest and fees on loans	$	182,625	$	248,579	$	599,306	$	768,216
Interest and dividends on investment securities
Taxable	13,689		23,485		50,064		79,248
Tax-exempt	14,523		14,491		44,021		42,950
Other interest	2,238		4,865		7,774		13,086
Total interest income	213,075		291,420		701,165		903,500
Interest expense
Interest on deposits	10,033		61,585		59,877		191,408
Interest on federal funds purchased and securities sold under agreements to repurchase	34		145		454		1,058
Interest on other short-term funding	5		30		46		113
Interest on PPPLF	899		0		1,574		0
Interest on FHLB advances	14,375		15,896		47,471		53,194
Interest on long-term funding	5,580		7,398		16,780		22,196
Total interest expense	30,925		85,054		126,201		267,969
Net interest income	182,150		206,365		574,964		635,532
Provision for credit losses	43,009		2,000		157,009		16,000
Net interest income after provision for credit losses	139,141		204,365		417,954		619,532
Noninterest income
Wealth management fees(a)	21,152		21,015		62,884		61,885
Service charges and deposit account fees	14,283		16,561		40,989		47,102
Card-based fees	10,195		10,456		28,685		29,848
Other fee-based revenue	4,968		5,085		14,240		14,246
Capital markets, net	7,222		4,300		22,067		12,215
Mortgage banking, net	12,636		10,940		31,043		25,118
Bank and corporate owned life insurance	3,074		4,337		9,793		11,482
Insurance commissions and fess	114		20,954		45,153		69,403
Asset gains (losses), net(b)	(339)		877		156,945		2,316
Investment securities gains (losses), net	7		3,788		9,222		5,931
Other	2,232		2,537		7,321		8,344
Total noninterest income	75,545		100,850		428,342		287,890
Noninterest expense
Personnel	108,567		123,170		334,117		366,449
Technology	19,666		20,572		61,639		59,698
Occupancy	17,854		15,164		48,386		45,466
Business development and advertising	3,626		7,991		13,007		21,284
Equipment	5,399		6,335		16,150		17,580
Legal and professional	5,591		5,724		15,809		14,342
Loan and foreclosure costs	2,118		1,638		8,842		5,599
FDIC assessment	3,900		4,000		14,650		12,250
Other intangible amortization	2,253		2,686		7,939		7,237
Acquisition related costs(c)	218		1,629		2,457		5,995
Loss on prepayments of FHLB advances	44,650		0		44,650		0
Other	13,745		12,021		35,537		34,479
Total noninterest expense	227,587		200,930		603,184		590,380
Income (loss) before income taxes	(12,900)		104,286		243,112		317,042
Income tax expense (benefit)	(58,114)		20,947		3,342		62,356
Net income	45,214		83,339		239,769		254,686
Preferred stock dividends	5,207		3,801		13,152		11,402
Net income available to common equity	$	40,007	$	79,539	$	226,618	$	243,285
Earnings per common share
Basic	$	0.26	$	0.50	$	1.47	$	1.49
Diluted	$	0.26	$	0.49	$	1.46	$	1.48
Average common shares outstanding
Basic	152,440		159,126		153,175		161,727
Diluted	153,194		160,382		153,914		163,061


($ in Thousands)	Purchase Accounting Adjustments		February 14, 2020
Assets
Cash and cash equivalents	$	0	$	44,782
Investment securities available for sale	(24)		98,743
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	0		781
Loans	(4,808)		369,741
Premises and equipment, net	(3,005)		4,865
Bank owned life insurance	9		6,770
Goodwill			13,414
Core deposit intangibles (included in other intangible assets, net on the face of the consolidated balance sheets)	7,379		7,379
OREO (included in other assets on the face of the consolidated balance sheets)	670		762
Other assets	4,193		9,090
Total assets			$	556,328
Liabilities
Deposits	$	1,285	$	438,684
Other borrowings	61		34,613
Accrued expenses and other liabilities	179		6,730
Total liabilities			$	480,028
Total consideration paid			$	76,300


($ in Thousands)	February 14, 2020
Purchase price of loans at acquisition	$	77,221
Allowance for credit losses at acquisition	3,504
Non-credit discount/(premium) at acquisition	(951)
Par value of acquired loans at acquisition	$	79,774


($ in Thousands)	Purchase Accounting Adjustments		June 14, 2019
Assets
Cash and cash equivalents	$	0	$	551,250


Loans	(1,552)		116,346
Premises and equipment, net	4,800		22,430

Goodwill			7,286
Core deposit intangibles (included in other intangible assets, net on the face of the consolidated balance sheets)	22,630		22,630
OREO (included in other assets on the face of the consolidated balance sheets)	(2,561)		5,263
Other assets	0		559
Total assets			$	725,764
Liabilities
Deposits	$	156	$	725,173

Other liabilities	70		590
Total liabilities			$	725,764


PART I - FINANCIAL INFORMATION

ITEM 1.			Financial Statements:


	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands, except per share data)	2021		2020			2021		2020
Net income	$	91,007	$	148,718		$	185,307	$	194,555
Preferred stock dividends	(4,875)		(4,144)			(10,082)		(7,945)
Net income available to common equity	$	86,131	$	144,573		$	175,226	$	186,611
Common shareholder dividends	(27,620)		(27,667)			(55,280)		(55,931)
Unvested share-based payment awards	(203)		(222)			(412)		(351)
Undistributed earnings	$	58,309	$	116,684		$	119,533	$	130,329
Undistributed earnings allocated to common shareholders	$	57,887	$	115,750		$	118,722	$	129,377
Undistributed earnings allocated to unvested share-based payment awards	422		934			810		953
Undistributed earnings	$	58,309	$	116,684		$	119,533	$	130,329
Basic
Distributed earnings to common shareholders	$	27,620	$	27,667		$	55,280	$	55,931
Undistributed earnings allocated to common shareholders	57,887		115,750			118,722		129,377
Total common shareholders earnings, basic	$	85,506	$	143,417		$	174,002	$	185,307
Diluted
Distributed earnings to common shareholders	$	27,620	$	27,667		$	55,280	$	55,931
Undistributed earnings allocated to common shareholders	57,887		115,750			118,722		129,377
Total common shareholders earnings, diluted	$	85,506	$	143,417		$	174,002	$	185,307
Weighted average common shares outstanding	152,042		152,393			152,198		153,547
Effect of dilutive common stock awards	1,339		757			1,275		813

Diluted weighted average common shares outstanding	153,381		153,150			153,473		154,360
Basic earnings per common share	$	0.56	$	0.94		$	1.14	$	1.21
Diluted earnings per common share	$	0.56	$	0.94		$	1.13	$	1.20


	December 31, 2019				January 1, 2020
($ in Thousands)	Allowance for Loan Losses		Allowance for Unfunded Commitments		CECL Day 1 Adjustment		ACLL Beginning Balance
Commercial and industrial	$	91,133	$	12,276	$	48,921	$	152,330
Commercial real estate - owner occupied	10,284		127		(1,851)		8,560
Commercial and business lending	101,417		12,403		47,070		160,890
Commercial real estate - investor	40,514		530		2,287		43,331
Real estate construction	24,915		7,532		25,814		58,261
Commercial real estate lending	65,428		8,062		28,101		101,591
Total Commercial	166,846		20,465		75,171		262,482
Residential mortgage	16,960		0		33,215		50,175
Home equity	10,926		1,038		14,240		26,204
Other consumer	6,639		405		8,520		15,564
Total consumer	34,525		1,443		55,975		91,943
Total loans	$	201,371	$	21,907	$	131,147	$	354,425


	2020
Dividend yield	3.50	%
Risk-free interest rate	1.60	%
Weighted average expected volatility	21.00	%
Weighted average expected life	5.75 years
Weighted average per share fair value of options	$2.39


Stock Options	Shares(a)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value(a)
Outstanding at December 31, 2019	5,543	$	20.13	6.25 years	$	16,043
Granted	1,697	18.43
Exercised	(117)	13.89
Forfeited or expired	(306)	21.48
Outstanding at September 30, 2020	6,817	$	19.75	6.47 years	$	18
Options Exercisable at September 30, 2020	4,203	$	19.21	5.07 years	$	18


Restricted Stock Awards	Shares(a)	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2019	2,393	$	22.39
Granted	1,043	18.21
Vested	(905)	22.64
Forfeited	(146)	20.65
Outstanding at September 30, 2020	2,385	$	20.56


($ in Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value


Investment securities available for sale
U. S. Treasury securities	$	26,541	$	108	$	0	$	26,650
Agency securities	24,983		50		0		25,033
Obligations of state and political subdivisions (municipal securities)	450,174		24,521		0		474,695
Residential mortgage-related securities
FNMA / FHLMC	1,267,003		9,554		(94)		1,276,463
GNMA	399,490		7,823		0		407,313

Commercial mortgage-related securities
FNMA / FHLMC	19,724		2,153		0		21,877
GNMA	670,573		17,805		0		688,378
Asset backed securities
FFELP	332,398		0		(6,556)		325,843
SBA	9,159		0		(48)		9,111

Other debt securities	3,000		0		(3)		2,997
Total investment securities available for sale	$	3,203,046	$	62,015	$	(6,701)	$	3,258,360
Investment securities held to maturity
U. S. Treasury securities	$	999	$	31	$	0	$	1,030
Obligations of state and political subdivisions (municipal securities)	1,444,325		115,343		(368)		1,559,300
Residential mortgage-related securities
FNMA / FHLMC	63,142		3,147		0		66,289
GNMA	159,455		5,217		0		164,672
Commercial mortgage-related securities
FNMA/FHLMC	11,220		0		0		11,220
GNMA	311,798		10,142		0		321,941
Total investment securities held to maturity	$	1,990,940	$	133,880	$	(368)	$	2,124,452


	Available for Sale					Held to Maturity
($ in Thousands)	Amortized Cost		Fair Value			Amortized Cost		Fair Value
Due in one year or less	$	8,343	$	8,350		$	28,957	$	29,140
Due after one year through five years	82,198		82,964			63,630		65,751
Due after five years through ten years	344,172		362,247			161,769		170,223
Due after ten years	69,987		75,815			1,190,968		1,295,217
Total debt securities	504,699		529,375			1,445,325		1,560,331
Residential mortgage-related securities
FNMA / FHLMC	1,267,003		1,276,463			63,142		66,289
GNMA	399,490		407,313			159,455		164,672

Commercial mortgage-related securities
FNMA / FHLMC	19,724		21,877			11,220		11,220
GNMA	670,573		688,378			311,798		321,941
Asset backed securities
FFELP	332,398		325,843			0		0
SBA	9,159		9,111			0		0

Total investment securities	$	3,203,046	$	3,258,360		$	1,990,940	$	2,124,452
Ratio of fair value to amortized cost			101.7		%			106.7		%


($ in Thousands)	AAA		AA		A		Not Rated		Total
U. S. Treasury securities	$	1,000	$	0	$	0	$	0	$	1,000
Obligations of state and political subdivisions (municipal securities)	600,671		867,638		10,872		194		1,479,375
Residential mortgage-related securities
FNMA / FHLMC	41,505		0		0		0		41,505
GNMA	66,979		0		0		0		66,979
Commercial mortgage-related securities
FNMA / FHLMC	63,668		0		0		0		63,668
GNMA	147,366		0		0		0		147,366
Total HTM securities	$	921,188	$	867,638	$	10,872	$	194	$	1,799,893


	Less than 12 months					12 months or more					Total
($ in Thousands)	Number of Securities	Unrealized (Losses)		Fair Value		Number of Securities	Unrealized (Losses)		Fair Value		Unrealized (Losses)		Fair Value
Investment securities AFS
U.S. Treasury securities	2	$	(181)	$	9,743	0	0		$	0	$	(181)	$	9,743
Agency securities	1	(9)		14,991		0	0		0		(9)		14,991


FNMA / FHLMC residential mortgage-related securities	17	(3,285)		604,030		0	0		0		(3,285)		604,030


Commercial mortgage-related securities
FNMA / FHLMC	1	(632)		39,472		0	0		0		(632)		39,472
GNMA	2	0		34		0	0		0		0		34
Asset backed securities
FFELP	2	(36)		23,835		9	(318)		72,947		(354)		96,782
SBA	0	0		0		9	(48)		4,642		(48)		4,642


Total	25	$	(4,143)	$	692,103	18	$	(366)	$	77,589	$	(4,509)	$	769,692
Investment securities HTM
Obligations of state and political subdivisions (municipal securities)	11	$	(190)	$	18,891	0	$	0	$	0	$	(190)	$	18,891




FNMA / FHLMC commercial mortgage-related securities	6	(591)		42,530		0	0		0		(591)		42,530

Total	17	$	(781)	$	61,422	0	$	0	$	0	$	(781)	$	61,422


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in Thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		YTD 2020		2019		2018		2017		2016		Prior		Total
PPP:(b)
Risk rating:
Pass	$	0	$	0	$	995,646	$	0	$	0	$	0	$	0	$	0	$	995,646
Special Mention	0		0		7,409		0		0		0		0		0		7,409
Potential Problem	0		0		19,161		0		0		0		0		0		19,161

PPP	$	0	$	0	$	1,022,217	$	0	$	0	$	0	$	0	$	0	$	1,022,217
Commercial and industrial:
Risk rating:
Pass	$	4,904	$	2,031,744	$	1,102,032	$	1,581,019	$	1,430,036	$	545,931	$	326,862	$	518,950	$	7,536,572
Special Mention	0		9,424		13,594		61,594		48,357		22		13,783		0		146,774
Potential Problem(c)	3,089		10,580		21,483		18,101		81,580		2,369		8,031		2,015		144,159
Nonaccrual(d)	568		200		1,571		6,761		15,728		44,933		29,193		7,513		105,899
Commercial and industrial	$	8,562	$	2,051,948	$	1,138,680	$	1,667,475	$	1,575,701	$	593,255	$	377,868	$	528,478	$	7,933,404
Commercial real estate - owner occupied:
Risk rating:
Pass	$	1,150	$	18,912	$	120,161	$	236,928	$	137,669	$	106,305	$	155,023	$	90,750	$	865,748
Special Mention	0		0		2,420		2,410		1,106		556		2,671		5,236		14,398
Potential Problem	0		2,593		678		7,804		1,354		1,135		5,127		4,117		22,808
Nonaccrual	0		0		168		0		371		326		0		1,177		2,043
Commercial real estate - owner occupied	$	1,150	$	21,505	$	123,426	$	247,142	$	140,499	$	108,323	$	162,821	$	101,280	$	904,997
Commercial and business lending:
Risk rating:
Pass	$	6,054	$	2,050,656	$	2,217,839	$	1,817,947	$	1,567,704	$	652,236	$	481,885	$	609,700	$	9,397,966
Special Mention	0		9,424		23,423		64,004		49,462		578		16,454		5,236		168,582
Potential Problem(c)	3,089		13,173		41,323		25,905		82,934		3,504		13,158		6,132		186,129
Nonaccrual(d)	568		200		1,739		6,761		16,099		45,259		29,193		8,690		107,941
Commercial and business lending	$	9,712	$	2,073,453	$	2,284,323	$	1,914,617	$	1,716,200	$	701,578	$	540,690	$	629,759	$	9,860,618
Commercial real estate - investor:
Risk rating:
Pass	$	84	$	189,623	$	1,082,792	$	1,030,772	$	781,592	$	321,341	$	350,582	$	245,290	$	4,001,992
Special Mention	0		0		57,701		53,145		12,408		13,439		29,818		1,506		168,018
Potential Problem	0		854		16,032		18,026		11,424		14,733		265		39,124		100,459
Nonaccrual	19,964		0		1,018		48,691		446		0		0		304		50,458
Commercial real estate - investor	$	20,049	$	190,477	$	1,157,543	$	1,150,634	$	805,870	$	349,513	$	380,665	$	286,224	$	4,320,926
Real estate construction:
Risk rating:
Pass	$	1,151	$	45,347	$	545,859	$	772,861	$	376,567	$	69,025	$	2,588	$	19,928	$	1,832,176
Special Mention	0		0		411		0		24,437		0		0		16		24,863
Potential Problem	0		0		127		0		355		1,557		95		45		2,178
Nonaccrual	0		0		12		0		0		0		0		380		392
Real estate construction	$	1,151	$	45,347	$	546,409	$	772,861	$	401,358	$	70,582	$	2,683	$	20,369	$	1,859,609
Commercial real estate lending:
Risk rating:
Pass	$	1,236	$	234,970	$	1,628,651	$	1,803,633	$	1,158,158	$	390,366	$	353,170	$	265,219	$	5,834,167
Special Mention	0		0		58,112		53,145		36,845		13,439		29,818		1,522		192,881
Potential Problem	0		854		16,159		18,026		11,779		16,289		360		39,169		102,637
Nonaccrual	19,964		0		1,030		48,691		446		0		0		684		50,850
Commercial real estate lending	$	21,200	$	235,823	$	1,703,952	$	1,923,495	$	1,207,229	$	420,095	$	383,348	$	306,593	$	6,180,536


	Accruing
($ in Thousands)	Current(a)		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Nonaccrual(b)(c)		Total
PPP	$	405,482	$	0	$	0	$	0	$	0	$	405,482
Commercial and industrial	7,890,277		80		179		203		18,380		7,909,119
Commercial real estate - owner occupied	880,700		47		0		0		7		880,755
Commercial and business lending	9,176,459		127		179		203		18,387		9,195,355
Commercial real estate - investor	4,237,257		391		0		—		63,003		4,300,651
Real estate construction	1,880,533		115		2		0		247		1,880,897
Commercial real estate lending	6,117,791		507		2		0		63,250		6,181,549
Total commercial	15,294,250		634		180		203		81,637		15,376,904
Residential mortgage	7,576,418		4,524		491		144		56,795		7,638,372
Home equity	620,794		2,202		270		0		8,517		631,783
Other consumer	298,261		649		425		955		186		300,477
Total consumer	8,495,473		7,375		1,186		1,099		65,498		8,570,632
Total loans	$	23,789,723	$	8,009	$	1,367	$	1,302	$	147,135	$	23,947,536


	Accruing
($ in Thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonaccrual(a)		Total
Commercial and industrial	$	7,307,118	$	576	$	245	$	342	$	46,312	$	7,354,594
Commercial real estate - owner occupied	909,828		1,369		0		0		67		911,265
Commercial and business lending	8,216,947		1,945		245		342		46,380		8,265,858
Commercial real estate - investor	3,788,296		1,812		0		0		4,409		3,794,517
Real estate construction	1,420,310		64		33		0		493		1,420,900
Commercial real estate lending	5,208,606		1,876		33		0		4,902		5,215,417
Total commercial	13,425,552		3,821		278		342		51,282		13,481,275
Residential mortgage	8,069,863		8,749		525		0		57,844		8,136,980
Home equity	837,274		4,483		1,164		0		9,104		852,025
Other consumer	347,007		1,135		949		1,917		152		351,159
Total consumer	9,254,144		14,366		2,638		1,917		67,099		9,340,164
Total loans	$	22,679,696	$	18,188	$	2,916	$	2,259	$	118,380	$	22,821,440


($ in Thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Loans with a related allowance
Commercial and industrial	$	47,249	$	63,346	$	12,010	$	45,290	$	1,832
Commercial real estate — owner occupied	1,676		1,682		19		1,774		88
Commercial and business lending	48,924		65,028		12,029		47,064		1,919
Commercial real estate — investor	928		2,104		15		950		15
Real estate construction	477		559		67		494		30
Commercial real estate lending	1,405		2,663		82		1,445		45
Total commercial	50,329		67,691		12,111		48,509		1,965
Residential mortgage	21,450		22,625		2,740		23,721		856
Home equity	3,076		3,468		1,190		3,756		191
Other consumer	1,247		1,249		125		1,250		1
Total consumer	25,773		27,342		4,055		28,726		1,047
Total loans with a related allowance	$	76,102	$	95,033	$	16,165	$	77,235	$	3,012
Loans with no related allowance
Commercial and industrial	$	14,787	$	33,438	$	0	$	20,502	$	63
Commercial real estate — owner occupied	0		0		0		0		0
Commercial and business lending	14,787		33,438		0		20,502		63
Commercial real estate — investor	3,705		3,705		0		3,980		159
Real estate construction	0		0		0		0		0
Commercial real estate lending	3,705		3,705		0		3,980		159
Total commercial	18,491		37,142		0		24,482		222
Residential mortgage	14,104		14,461		0		10,962		373
Home equity	1,346		1,383		0		1,017		21
Other consumer	0		0		0		0		0
Total consumer	15,450		15,845		0		11,979		394
Total loans with no related allowance	$	33,941	$	52,987	$	0	$	36,462	$	616
Total
Commercial and industrial	$	62,035	$	96,784	$	12,010	$	65,792	$	1,895
Commercial real estate — owner occupied	1,676		1,682		19		1,774		88
Commercial and business lending	63,711		98,466		12,029		67,566		1,982
Commercial real estate — investor	4,633		5,808		15		4,931		174
Real estate construction	477		559		67		494		30
Commercial real estate lending	5,110		6,367		82		5,425		204
Total commercial	68,820		104,833		12,111		72,991		2,186
Residential mortgage	35,554		37,087		2,740		34,683		1,229
Home equity	4,422		4,851		1,190		4,773		211
Other consumer	1,247		1,249		125		1,250		1
Total consumer	41,223		43,187		4,055		40,706		1,441
Total loans(a)	$	110,043	$	148,020	$	16,165	$	113,697	$	3,628


	Nine Months Ended September 30, 2020					Nine Months Ended September 30, 2019
($ 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	3	$	1,250	$	1,324	1	$	185	$	185
Commercial real estate — owner occupied	2	453		751		0	0		0
Commercial real estate — investor	1	530		530		0	0		0
Real estate construction	1	102		102		0	0		0
Residential mortgage	32	5,789		5,870		47	6,785		6,863
Home equity	18	676		702		18	520		520
Other consumer	0	0		0		1	9		9
Total loans modified	57	$	8,800	$	9,280	67	$	7,500	$	7,577


	Six Months Ended June 30, 2021					Six Months Ended June 30, 2020
($ 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	2	$	128	$	129	2	$	1,112	$	1,140
Commercial real estate — owner occupied	0	0		0		1	288		319
Commercial real estate — investor	4	1,690		1,690		1	395		1,705
Real estate construction	0	0		0		1	102		102
Residential mortgage	37	7,424		7,450		24	5,163		5,237
Home equity	4	566		603		15	471		483

Total loans modified	47	$	9,808	$	9,871	44	$	7,531	$	8,986


($ in Thousands)	December 31, 2020		Charge offs		Recoveries		Net Charge offs		Provision for credit losses		June 30, 2021		ACLL / Loans
Allowance for loan losses
PPP	$	531	$	0	$	0	$	0	$	(299)	$	232
Commercial and industrial	142,793		(3,723)		6,423		2,700		(41,178)		104,315
Commercial real estate — owner occupied	11,274		0		9		9		1,023		12,306
Commercial and business lending	154,598		(3,723)		6,432		2,709		(40,454)		116,853
Commercial real estate — investor	93,435		(14,340)		2,865		(11,475)		1,410		83,371
Real estate construction	59,193		(3)		54		52		(10,023)		49,221
Commercial real estate lending	152,629		(14,342)		2,919		(11,423)		(8,613)		132,592
Total commercial	307,226		(18,065)		9,350		(8,715)		(49,067)		249,445
Residential mortgage	42,996		(554)		222		(332)		566		43,230
Home equity	18,849		(535)		1,216		681		(4,464)		15,066
Other consumer	14,630		(1,700)		675		(1,025)		(2,535)		11,069
Total consumer	76,475		(2,790)		2,114		(676)		(6,433)		69,366
Total loans	$	383,702	$	(20,855)	$	11,464	$	(9,391)	$	(55,500)	$	318,811
Allowance for unfunded commitments

Commercial and industrial	22,311		—		—		—		(1,151)		21,161
Commercial real estate — owner occupied	266		—		—		—		140		406
Commercial and business lending	22,577		—		—		—		(1,011)		21,566
Commercial real estate — investor	636		—		—		—		87		723
Real estate construction	18,887		—		—		—		(1,267)		17,620
Commercial real estate lending	19,523		—		—		—		(1,180)		18,343
Total commercial	42,101		—		—		—		(2,191)		39,910

Home equity	3,118		—		—		—		(172)		2,946
Other consumer	2,557		—		—		—		(137)		2,420
Total consumer	5,675		—		—		—		(309)		5,366
Total loans	$	47,776	$	—	$	—	$	—	$	(2,500)	$	45,276
Allowance for credit losses on loans
PPP	$	531	$	0	$	0	$	0	$	(299)	$	232	0.06	%
Commercial and industrial	165,105		(3,723)		6,423		2,700		(42,328)		125,476		1.59	%
Commercial real estate — owner occupied	11,539		0		9		9		1,163		12,711		1.44	%
Commercial and business lending	177,175		(3,723)		6,432		2,709		(41,465)		138,419		1.51	%
Commercial real estate — investor	94,071		(14,340)		2,865		(11,475)		1,497		84,093		1.96	%
Real estate construction	78,080		(3)		54		52		(11,290)		66,842		3.55	%
Commercial real estate lending	172,152		(14,342)		2,919		(11,423)		(9,793)		150,936		2.44	%
Total commercial	349,327		(18,065)		9,350		(8,715)		(51,257)		289,355		1.88	%
Residential mortgage	42,996		(554)		222		(332)		566		43,230		0.57	%
Home equity	21,967		(535)		1,216		681		(4,636)		18,012		2.85	%
Other consumer	17,187		(1,700)		675		(1,025)		(2,672)		13,489		4.49	%
Total consumer	82,150		(2,790)		2,114		(676)		(6,743)		74,731		0.87	%
Total loans	$	431,478	$	(20,855)	$	11,464	$	(9,391)	$	(58,000)	$	364,087	1.52	%


($ in Thousands)	Dec. 31, 2019		Cumulative effect of ASU 2016-13 adoption (CECL)		Jan. 1, 2020		Charge offs		Recoveries		Net Charge offs		Gross up of allowance for PCD loans at acquisition		Provision recorded at acquisition		Provision for loan losses		Sept. 30, 2020		ACLL / Loans
Allowance for loan losses
PPP	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	968	$	968
Commercial and industrial	91,133		52,919		144,052		(70,011)		5,210		(64,802)		293		408		87,840		167,793
Commercial real estate — owner occupied	10,284		(1,851)		8,433		(419)		4		(415)		890		255		2,027		11,190
Commercial and business lending	101,417		51,068		152,485		(70,430)		5,213		(65,216)		1,183		663		90,836		179,951
Commercial real estate — investor	40,514		2,041		42,555		(4,224)		643		(3,581)		753		472		50,004		90,201
Real estate construction	24,915		7,467		32,382		(42)		30		(12)		435		492		3,823		37,119
Commercial real estate lending	65,429		9,508		74,937		(4,266)		673		(3,593)		1,188		964		53,827		127,321
Total commercial	166,846		60,576		227,422		(74,696)		5,887		(68,810)		2,371		1,627		144,662		307,272
Residential mortgage	16,960		33,215		50,175		(1,615)		409		(1,206)		651		403		(6,382)		43,640
Home equity	10,926		11,649		22,575		(1,551)		1,476		(76)		422		374		(3,935)		19,361
Other consumer	6,639		7,016		13,655		(3,875)		845		(3,030)		61		140		3,612		14,438
Total consumer	34,525		51,880		86,405		(7,042)		2,730		(4,311)		1,134		917		(6,705)		77,440
Total loans	$	201,371	$	112,457	$	313,828	$	(81,738)	$	8,617	$	(73,121)	$	3,504	$	2,543	$	137,957	$	384,711
Allowance for unfunded commitments

Commercial and industrial	12,276		(3,998)		8,278		—		—		—		—		61		12,851		21,190
Commercial real estate — owner occupied	127		0		127		—		—		—		—		4		434		564
Commercial and business lending	12,403		(3,998)		8,405		—		—		—		—		65		13,285		21,754
Commercial real estate — investor	530		246		776		—		—		—		—		2		(58)		719
Real estate construction	7,532		18,347		25,879				—		—		—		45		2,703		28,626
Commercial real estate lending	8,062		18,593		26,655		—		—		—		—		47		2,644		29,345
Total commercial	20,465		14,595		35,060		—		—		—		—		112		15,929		51,100

Home equity	1,038		2,591		3,629		—		—		—		—		66		(106)		3,588
Other consumer	405		1,504		1,909		—		—		—		—		0		676		2,585
Total consumer	1,443		4,095		5,538		—		—		—		—		66		571		6,176
Total loans	$	21,907	$	18,690	$	40,597	$	—	$	—	$	—	$	—	$	179	$	16,500	$	57,276
Allowance for credit losses on loans
PPP	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	968	$	968	0.09	%
Commercial and industrial	103,409		48,921		152,330		(70,011)		5,210		(64,802)		293		469		100,691		188,983		2.38	%
Commercial real estate — owner occupied	10,411		(1,851)		8,560		(419)		4		(415)		890		259		2,461		11,755		1.30	%
Commercial and business lending	113,820		47,070		160,890		(70,430)		5,213		(65,216)		1,183		728		104,120		201,706		2.05	%
Commercial real estate — investor	41,044		2,287		43,331		(4,224)		643		(3,581)		753		474		49,945		90,921		2.10	%
Real estate construction	32,447		25,814		58,261		(42)		30		(12)		435		537		6,525		65,745		3.54	%
Commercial real estate lending	73,490		28,101		101,591		(4,266)		673		(3,593)		1,188		1,011		56,471		156,667		2.53	%
Total commercial	187,311		75,171		262,482		(74,696)		5,887		(68,810)		2,371		1,739		160,591		358,372		2.23	%
Residential mortgage	16,960		33,215		50,175		(1,615)		409		(1,206)		651		403		(6,380)		43,643		0.55	%
Home equity	11,964		14,240		26,204		(1,551)		1,476		(76)		422		440		(4,041)		22,949		3.01	%
Other consumer	7,044		8,520		15,564		(3,875)		845		(3,030)		61		140		4,287		17,023		5.40	%
Total consumer	35,968		55,975		91,943		(7,042)		2,730		(4,311)		1,134		983		(6,134)		83,616		0.93	%
Total loans	$	223,278	$	131,147	$	354,425	$	(81,738)	$	8,617	$	(73,121)	$	3,504	$	2,722	$	154,457	$	441,988	1.77	%


($ in Thousands)	December 31, 2018		Charge offs		Recoveries		Net Charge offs		Provision for loan losses		December 31, 2019
Allowance for loan losses
Commercial and industrial	$	108,835	$	(63,315)	$	11,875	$	(51,441)	$	33,738	$	91,133
Commercial real estate — owner occupied	9,255		(222)		2,795		2,573		(1,543)		10,284
Commercial and business lending	118,090		(63,537)		14,670		(48,868)		32,195		101,417
Commercial real estate — investor	40,844		0		31		31		(361)		40,514
Real estate construction	28,240		(60)		302		243		(3,568)		24,915
Commercial real estate lending	69,084		(60)		333		274		(3,929)		65,429
Total commercial	187,174		(63,597)		15,003		(48,594)		28,266		166,846
Residential mortgage	25,595		(3,322)		692		(2,630)		(6,005)		16,960
Home equity	19,266		(1,846)		2,599		753		(9,093)		10,926
Other consumer	5,988		(5,548)		868		(4,681)		5,332		6,639
Total consumer	50,849		(10,716)		4,159		(6,558)		(9,766)		34,525
Total loans	$	238,023	$	(74,313)	$	19,161	$	(55,152)	$	18,500	$	201,371


($ in Thousands)	Nine Months Ended September 30, 2020		Year Ended December 31, 2019
Core deposit intangibles
Gross carrying amount at the beginning of the year	$	80,730	$	58,100
Additions during the period	7,379		22,630
Accumulated amortization	(19,003)		(12,456)
Net book value	$	69,107	$	68,274
Amortization during the year	$	6,547	$	7,130
Other intangibles
Gross carrying amount at the beginning of the year	$	38,970	$	44,887
Additions during the period	200		0
Reductions due to sale	(17,435)		(217)
Accumulated amortization	(20,335)		(24,643)
Net book value	$	1,400	$	20,027
Amortization during the year	$	1,393	$	2,818


($ in Thousands)	Investment Securities AFS		Defined Benefit Pension and Postretirement Obligations		Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2020	$	41,325	$	(28,707)	$	12,618
Other comprehensive income (loss) before reclassifications	(16,002)		0		(16,002)
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities losses (gains), net	16		0		16
Personnel expense	0		(74)		(74)

Other expense	0		2,100		2,100


Interest income	1,163		0		1,163
Income tax (expense) benefit	3,574		(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

Balance December 31, 2019	$	3,989	$	(37,172)	$	(33,183)
Other comprehensive income (loss) before reclassifications	48,060		0		48,060
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities losses (gains), net	(9,214)		0		(9,214)
Personnel expense	0		(75)		(75)
Other expense	0		1,610		1,610


Interest income	1,332		0		1,332
Income tax (expense) benefit	(10,066)		(385)		(10,450)
Net other comprehensive income (loss) during period	30,112		1,150		31,263
Balance June 30, 2020	$	34,101	$	(36,021)	$	(1,920)


($ in Thousands)	Investment Securities Available For Sale		Defined Benefit Pension and Postretirement Obligations		Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2019	$	3,989	$	(37,172)	$	(33,183)
Other comprehensive income (loss) before reclassifications	53,900		0		53,900
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities losses (gains), net	(9,222)		0		(9,222)
Personnel expense	0		(111)		(111)

Other expense	0		2,923		2,923


Interest income	2,628		0		2,628
Income tax (expense) benefit	(11,852)		(1,088)		(12,939)
Net other comprehensive income (loss) during period	35,454		1,724		37,178
Balance September 30, 2020	$	39,443	$	(35,448)	$	3,995

Balance December 31, 2018	$	(75,643)	$	(49,330)	$	(124,972)
Other comprehensive income (loss) before reclassifications	123,139		0		123,139
Amounts reclassified from accumulated other comprehensive income (loss)
Investment securities losses (gains), net	(5,931)		0		(5,931)
Personnel expense	0		(111)		(111)
Other expense	0		357		357


Interest income	279		0		279
Income tax (expense) benefit	(29,651)		(62)		(29,713)
Net other comprehensive income (loss) during period	87,836		184		88,020
Balance September 30, 2019	$	12,194	$	(49,146)	$	(36,953)