Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of ~~April~~July 22, 2022, UMB Financial Corporation had ~~48,404,130~~48,306,281 shares of common stock outstanding.

	March 31,			December 31,			June 30,			December 31,
	2022			2021			2022			2021
	(unaudited)			(audited)			(unaudited)			(audited)
ASSETS
Loans	$	17,731,700		$	17,170,871		$	18,972,158		$	17,170,871
Allowance for credit losses on loans		(179,288	)		(194,771	)		(164,346	)		(194,771	)
Net loans		17,552,412			16,976,100			18,807,812			16,976,100
Loans held for sale		384			1,277			750			1,277
Securities:
Available for sale (amortized cost of $8,898,849 and $11,822,584, respectively)		8,550,093			11,976,514
Held to maturity, net of allowance for credit losses of $2,045 and $1,940, respectively (fair value of $4,393,455 and $1,442,391, respectively)		4,600,187			1,478,476
Available for sale (amortized cost of $8,317,505 and $11,822,584, respectively)								7,739,216			11,976,514
Held to maturity, net of allowance for credit losses of $2,259 and $1,940, respectively (fair value of $5,245,451 and $1,442,391, respectively)								5,707,282			1,478,476
Trading securities		17,059			31,875			9,646			31,875
Other securities		332,123			327,098			342,543			327,098
Total securities		13,499,462			13,813,963			13,798,687			13,813,963
Federal funds sold and securities purchased under agreements to resell		1,319,809			1,216,357			1,055,459			1,216,357
Interest-bearing due from banks		6,355,941			8,841,906			1,825,295			8,841,906
Cash and due from banks		357,772			413,821			360,242			413,821
Premises and equipment, net		264,519			270,933			257,729			270,933
Accrued income		127,139			131,102			144,874			131,102
Goodwill		182,225			174,518			182,225			174,518
Other intangibles, net		15,690			14,416			14,465			14,416
Other assets		930,389			839,091			1,060,303			839,091
Total assets	$	40,605,742		$	42,693,484		$	37,507,841		$	42,693,484

LIABILITIES
Deposits:
Noninterest-bearing demand	$	15,946,738		$	16,342,642		$	14,925,555		$	16,342,642
Interest-bearing demand and savings		17,828,794			18,405,644			16,007,087			18,405,644
Time deposits under $250,000		399,467			403,660			383,832			403,660
Time deposits of $250,000 or more		187,566			447,981			169,550			447,981
Total deposits		34,362,565			35,599,927			31,486,024			35,599,927
Federal funds purchased and repurchase agreements		2,840,535			3,238,435			2,661,283			3,238,435
Long-term debt		272,036			271,544			272,505			271,544
Accrued expenses and taxes		178,130			249,492			182,185			249,492
Other liabilities		204,071			188,662			262,956			188,662
Total liabilities		37,857,337			39,548,060			34,864,953			39,548,060

SHAREHOLDERS' EQUITY
Common stock, $1.00 par value; 80,000,000 shares authorized; 55,056,730 shares issued, 48,403,262 and 48,430,805 shares outstanding, respectively		55,057			55,057
Common stock, $1.00 par value; 80,000,000 shares authorized; 55,056,730 shares issued, 48,305,286 and 48,430,805 shares outstanding, respectively								55,057			55,057
Capital surplus		1,109,585			1,110,520			1,115,504			1,110,520
Retained earnings		2,265,129			2,176,998			2,384,454			2,176,998
Accumulated other comprehensive (loss) income, net		(343,128	)		126,314			(564,803	)		126,314
Treasury stock, 6,653,468 and 6,625,925 shares, at cost, respectively		(338,238	)		(323,465	)
Treasury stock, 6,751,444 and 6,625,925 shares, at cost, respectively								(347,324	)		(323,465	)
Total shareholders' equity		2,748,405			3,145,424			2,642,888			3,145,424
Total liabilities and shareholders' equity	$	40,605,742		$	42,693,484		$	37,507,841		$	42,693,484

	Three Months Ended						Three Months Ended					Six Months Ended
	March 31,						June 30,					June 30,
	2022			2021			2022			2021		2022		2021
INTEREST INCOME
Loans	$	149,470		$	150,170		$	169,919		$	154,537	$	319,389	$	304,707
Securities:
Taxable interest		43,382			27,162			47,295			29,780		90,677		56,942
Tax-exempt interest		23,855			24,964			23,538			24,743		47,393		49,707
Total securities income		67,237			52,126			70,833			54,523		138,070		106,649
Federal funds and resell agreements		2,450			2,821			3,497			2,552		5,947		5,373
Interest-bearing due from banks		2,457			703			4,207			833		6,664		1,536
Trading securities		185			159			114			189		299		348
Total interest income		221,799			205,979			248,570			212,634		470,369		418,613
INTEREST EXPENSE
Deposits		6,173			6,798			15,439			6,574		21,612		13,372
Federal funds and repurchase agreements		2,148			1,886			4,998			1,779		7,146		3,665
Other		3,123			3,180			3,342			3,210		6,465		6,390
Total interest expense		11,444			11,864			23,779			11,563		35,223		23,427
Net interest income		210,355			194,115			224,791			201,071		435,146		395,186
Provision for credit losses		(6,500	)		(7,500	)		13,400			24,000		6,900		16,500
Net interest income after provision for credit losses		216,855			201,615			211,391			177,071		428,246		378,686
NONINTEREST INCOME
Trust and securities processing		59,528			54,834			58,886			53,863		118,414		108,697
Trading and investment banking		5,440			9,356			7,123			8,670		12,563		18,026
Service charges on deposit accounts		24,642			21,976			20,835			22,592		45,477		44,568
Insurance fees and commissions		259			420			245			245		504		665
Brokerage fees		3,456			3,334			12,391			2,592		15,847		5,926
Bankcard fees		16,635			14,673			17,840			16,063		34,475		30,736
Investment securities losses, net		(522	)		(8,336	)
Investment securities gains, net								60,720			15,455		60,198		7,119
Other		14,240			12,640			(1,705	)		12,109		12,535		24,749
Total noninterest income		123,678			108,897			176,335			131,589		300,013		240,486
NONINTEREST EXPENSE
Salaries and employee benefits		130,634			127,681			121,390			120,415		252,024		248,096
Occupancy, net		12,232			11,935			11,976			12,296		24,208		24,231
Equipment		18,164			19,615			18,315			19,196		36,479		38,811
Supplies and services		3,262			3,492			3,492			3,469		6,754		6,961
Marketing and business development		4,932			2,345			5,308			4,797		10,240		7,142
Processing fees		18,443			15,417			19,338			16,501		37,781		31,918
Legal and consulting		6,911			5,755			11,265			8,147		18,176		13,902
Bankcard		6,567			4,956			5,880			4,529		12,447		9,485
Amortization of other intangible assets		1,071			1,380			1,225			1,157		2,296		2,537
Regulatory fees		3,482			2,546			3,464			2,769		6,946		5,315
Other		9,080			5,824			12,474			8,062		21,554		13,886
Total noninterest expense		214,778			200,946			214,127			201,338		428,905		402,284
Income before income taxes		125,755			109,566			173,599			107,322		299,354		216,888
Income tax expense		19,792			16,923			36,043			19,910		55,835		36,833
NET INCOME	$	105,963		$	92,643		$	137,556		$	87,412	$	243,519	$	180,055

PER SHARE DATA
Net income – basic	$	2.19		$	1.93		$	2.85		$	1.81	$	5.03	$	3.74
Net income – diluted		2.17			1.91			2.83			1.79		4.99		3.70
Dividends		0.37			0.32			0.37			0.32		0.74		0.64
Weighted average shares outstanding – basic		48,406,840			48,096,643			48,347,226			48,294,952		48,376,868		48,196,345
Weighted average shares outstanding – diluted		48,832,177			48,520,752			48,673,964			48,698,319		48,755,059		48,604,140

	Common Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total			Common Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance – January 1, 2021	$	55,057	$	1,090,450		$	1,891,246		$	318,340		$	(338,145	)	$	3,016,948		$	55,057	$	1,090,450		$	1,891,246		$	318,340		$	(338,145	)	$	3,016,948
Total comprehensive income (loss)		—		—			92,643			(149,143	)		—			(56,500	)		—		—			180,055			(95,233	)		—			84,822
Dividends ($0.32 per share)		—		—			(15,571	)		—			—			(15,571	)
Dividends ($0.64 per share)																			—		—			(31,167	)		—			—			(31,167	)
Purchase of treasury stock		—		—			—			—			(4,027	)		(4,027	)		—		—			—			—			(4,088	)		(4,088	)
Issuances of equity awards, net of forfeitures		—		(4,043	)		—			—			4,738			695			—		(4,122	)		—			—			4,817			695
Recognition of equity-based compensation		—		4,457			—			—			—			4,457			—		8,609			—			—			—			8,609
Sale of treasury stock		—		65			—			—			86			151			—		148			—			—			153			301
Exercise of stock options		—		2,738			—			—			9,348			12,086			—		3,054			—			—			11,070			14,124
Balance – March 31, 2021	$	55,057	$	1,093,667		$	1,968,318		$	169,197		$	(328,000	)	$	2,958,239
Balance – June 30, 2021																		$	55,057	$	1,098,139		$	2,040,134		$	223,107		$	(326,193	)	$	3,090,244

Balance – January 1, 2022	$	55,057	$	1,110,520		$	2,176,998		$	126,314		$	(323,465	)	$	3,145,424		$	55,057	$	1,110,520		$	2,176,998		$	126,314		$	(323,465	)	$	3,145,424
Total comprehensive income (loss)		—		—			105,963			(469,442	)		—			(363,479	)		—		—			243,519			(691,117	)		—			(447,598	)
Dividends ($0.37 per share)		—		—			(17,832	)		—			—			(17,832	)
Dividends ($0.74 per share)																			—		—			(36,063	)		—			—			(36,063	)
Purchase of treasury stock		—		—			—			—			(22,487	)		(22,487	)		—		—			—			—			(31,806	)		(31,806	)
Issuances of equity awards, net of forfeitures		—		(6,630	)		—			—			7,309			679			—		(6,630	)		—			—			7,309			679
Recognition of equity-based compensation		—		5,485			—			—			—			5,485			—		11,223			—			—			—			11,223
Sale of treasury stock		—		84			—			—			54			138			—		174			—			—			111			285
Exercise of stock options		—		126			—			—			351			477			—		217			—			—			527			744
Balance – March 31, 2022	$	55,057	$	1,109,585		$	2,265,129		$	(343,128	)	$	(338,238	)	$	2,748,405
Balance – June 30, 2022																		$	55,057	$	1,115,504		$	2,384,454		$	(564,803	)	$	(347,324	)	$	2,642,888

The Consolidated Financial Statements include the accounts of UMB Financial Corporation and its subsidiaries (collectively, the Company) after the elimination of all intercompany transactions. In the opinion of management of the Company, all adjustments relating to items that are of a normal recurring nature and necessary for a fair presentation of the financial position and results of operations have been made. The results of operations and cash flows for the interim periods presented may not be indicative of the results of the full year ending December 31, 2022. The financial statements should be read in conjunction with “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations” within this Quarterly Report on Form 10-Q (the Form 10-Q) and in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (SEC) on February 24, 2022 (the Form 10-K).

The Company is a financial holding company, which offers a wide range of banking and other financial services to its customers through its branches and offices. The Company’s national bank, UMB Bank, National Association (the Bank), has its principal office in Missouri and also has branches in Arizona, Colorado, Illinois, Kansas, Nebraska, Oklahoma, and Texas. The Company also has offices in Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, Wisconsin, Iowa, and New York.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also impact reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A summary of the significant accounting policies to assist the reader in understanding the financial presentation is provided in the Notes to Consolidated Financial Statements in the Form 10-K.

Cash and cash equivalents includes Cash and due from banks and amounts due from the Federal Reserve Bank (FRB). Cash on hand, cash items in the process of collection, and amounts due from correspondent banks are included in Cash and due from banks. Amounts due from the FRB are interest-bearing for all periods presented and are included in the Interest-bearing due from banks line on the Company’s Consolidated Balance Sheets.

This table provides a summary of cash and cash equivalents as presented on the Consolidated Statements of Cash Flows as of ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021 (in thousands):

	March 31,				June 30,
	2022		2021		2022		2021
Due from the FRB	$	6,328,886	$	3,806,302	$	1,756,245	$	4,981,723
Cash and due from banks		357,772		387,230		360,242		469,883
Cash and cash equivalents at end of period	$	6,686,658	$	4,193,532	$	2,116,487	$	5,451,606

Also included in the Interest-bearing due from banks, but not considered cash and cash equivalents, are interest-bearing accounts held at other financial institutions, which totaled ~~$27.1~~$63.9 million and ~~$54.5~~$77.4 million at ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021, respectively.

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted quarter-to-date net income per share includes the dilutive effect of ~~425,337~~326,738 and ~~424,109~~403,367 shares issuable upon the exercise of stock options, nonvested restricted shares, and nonvested restricted stock units granted by the Company and outstanding at ~~March 31,~~June 30, 2022 and ~~2021.~~2021, respectively. Diluted year-to-date net income per share includes the dilutive effect of 378,191 and 407,795 shares issuable upon the exercise of stock options, nonvested restricted shares, and nonvested restricted stock units granted by the Company and outstanding at June 30, 2022 and 2021, respectively.

Certain options, restricted stock and restricted stock units issued under employee benefits plans were excluded from the computation of diluted earnings per share because they were anti-dilutive. For the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~ 2021, there were 0 outstanding stock options, restricted stock and restricted stock units excluded from the computation of diluted income per share.

The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Currently, 1210 of the Company’s derivatives are designated in qualifying hedging relationships. ~~The~~However, the remainder of the Company’s derivatives are not designated in qualifying hedging relationships, as the derivatives are not used to manage risks within the Company’s assets or liabilities. All changes in fair value of the Company’s non-designated derivatives and fair value hedges are recognized directly in earnings. Changes in fair value of the Company’s cash flow hedges are recognized in accumulated other comprehensive income (AOCI) and are reclassified to earnings when the hedged transaction affects earnings.

Troubled Debt Restructurings In March 2022, the FASB issued Accounting Standards Update (ASU) No. 2022-02, “Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the accounting guidance for troubled debt restructurings (TDR) by creditors and enhances disclosure requirements for certain loan ~~refinancings~~re-financings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments also add requirements to disclose current-period gross ~~writeoffs~~write-offs by year of origination for financing receivables and net investments in leases, disclosed by credit-quality indicator and class of financing receivable. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in an interim period. The adoption of this accounting pronouncement will have no impact on the Consolidated Financial Statements aside from additional and revised disclosures.

The Company has certain lending policies and procedures in place that are designed to minimize the level of risk within the loan portfolio. Diversification of the loan portfolio manages the risk associated with fluctuations in economic conditions. Authority levels are established for the extension of credit to ensure consistency throughout the Company. It is necessary that policies, processes, and practices implemented to control the risks of individual credit transactions and portfolio segments are sound and adhered to. The Company maintains an independent loan review department that reviews and validates the risk assessment on a continual basis. Management regularly evaluates the results of the loan reviews. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Commercial loans are made based on the identified cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial

loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts from its customers.

Specialty lending loans include Asset-based and Factoring loans. Asset-based loans are offered primarily in the form of revolving lines of credit to commercial borrowers that do not generally qualify for traditional bank financing. Asset-based loans are underwritten based primarily upon the value of the collateral pledged to secure the loan, rather than on the borrower’s general financial condition. The Company utilizes pre-loan due diligence techniques, monitoring disciplines, and loan management practices common within the asset-based lending industry to underwrite loans to these borrowers. Factoring loans provide working capital through the purchase and/or financing of accounts receivable to borrowers in the transportation industry and to commercial borrowers that do not generally qualify for traditional bank financing. During the first quarter of 2022, the Company sold its factoring loan portfolio to an alternative financing company. The sale included $82.6 million of loans, resulting in a gain of $2.4 million.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Company requires that an appraisal of the collateral be made at origination and on an as-needed basis, in conformity with current market conditions and regulatory requirements. The underwriting standards address both owner and non-owner-occupied real estate. Also included in Commercial real estate are Construction loans that are underwritten using feasibility studies, independent appraisal reviews, sensitivity analysis or absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are based upon estimates of costs and value associated with the complete project. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their repayment being sensitive to interest rate changes, governmental regulation of real property, economic conditions, and the availability of long-term financing.

Consumer real estate loans, including residential real estate and home equity loans, are underwritten based on the borrower’s loan-to-value percentage, collection remedies, and overall credit history.

Consumer loans are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer loans and leases. The underwriting and review practices combined with the relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Consumer loans and leases that are 90 days past due or more are considered non-performing.

Credit cards include both commercial and consumer credit cards. Commercial credit cards are generally unsecured and are underwritten with criteria similar to commercial loans, including an analysis of the borrower’s cash flow, available business capital, and overall creditworthiness of the borrower. Consumer credit cards are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer credit cards and periodically reviews the distribution of ~~FICO~~credit scores relative to historical periods to monitor credit risk on its consumer credit card loans.

Credit risk is a potential loss resulting from nonpayment of either the primary or secondary exposure. Credit risk is mitigated with formal risk management practices and a thorough initial credit-granting process including consistent underwriting standards and approval process. Control factors or techniques to minimize credit risk include knowing the client, understanding total exposure, analyzing the client and debtor’s financial capacity, and

monitoring the client’s activities. Credit risk and portions of the portfolio risk are managed through concentration considerations, average risk ratings, and other aggregate characteristics.

This table provides a summary of loan classes and an aging of past due loans at ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022												June 30, 2022
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Nonaccrual Loans		Total Past Due		Current		Total Loans		30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Nonaccrual Loans		Total Past Due		Current		Total Loans
Loans
Commercial and industrial	$	4,564	$	1,375	$	91,053	$	96,992	$	7,516,907	$	7,613,899	$	15,369	$	1,747	$	10,158	$	27,274	$	8,281,580	$	8,308,854
Specialty lending		—		—		11,797		11,797		494,063		505,860		—		—		—		—		545,837		545,837
Commercial real estate		9,470		463		2,651		12,584		6,406,926		6,419,510		1,776		100		2,600		4,476		6,721,357		6,725,833
Consumer real estate		1,397		—		3,892		5,289		2,388,025		2,393,314		176		—		4,437		4,613		2,524,279		2,528,892
Consumer		49		1		572		622		132,193		132,815		121		—		561		682		171,909		172,591
Credit cards		1,679		1,761		366		3,806		393,294		397,100		2,681		1,599		336		4,616		392,676		397,292
Leases and other		—		—		25		25		269,177		269,202		—		—		25		25		292,834		292,859
Total loans	$	17,159	$	3,600	$	110,356	$	131,115	$	17,600,585	$	17,731,700	$	20,123	$	3,446	$	18,117	$	41,686	$	18,930,472	$	18,972,158

The Company sold consumer real estate loans with proceeds of ~~$9.5~~$22.3 million and ~~$43.2~~$88.6 million in the secondary market without recourse during the ~~three~~six months ended ~~March 31,~~June 30, 2022 and 2021, respectively.

The Company has ceased the recognition of interest on loans with a carrying value of ~~$110.4~~$18.1 million and $92.3 million at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. Restructured loans totaled ~~$7.1~~$11.2 million and $7.3 million at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. Loans 90 days past due and still accruing interest amounted to ~~$3.6~~$3.4 million and $2.6 million at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. There was an insignificant amount of interest reversed related to loans on nonaccrual during 2022 and 2021. Nonaccrual loans with no related allowance for credit losses totaled ~~$101.0~~$18.1 million and $85.9 million at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively.

The following tables provide the amortized cost of nonaccrual loans with no related allowance for credit losses by loan class at ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022				June 30, 2022
	Nonaccrual Loans		Amortized Cost of Nonaccrual Loans with no related Allowance		Nonaccrual Loans		Amortized Cost of Nonaccrual Loans with no related Allowance
Loans
Commercial and industrial	$	91,053	$	81,686	$	10,158	$	10,158
Specialty lending		11,797		11,797		—		—
Commercial real estate		2,651		2,651		2,600		2,600
Consumer real estate		3,892		3,892		4,437		4,437
Consumer		572		572		561		561
Credit cards		366		366		336		336
Leases and other		25		25		25		25
Total loans	$	110,356	$	100,989	$	18,117	$	18,117

The following tables provide a summary of the amortized cost balance of each of the Company’s loan classes disaggregated by collateral type and origination year as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

		March 31, 2022																					June 30, 2022
														Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																		Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type		Amortized Cost Basis by Origination Year - Term Loans																					Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total			2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Commercial and industrial:	Commercial and industrial:																					Commercial and industrial:
Equipment/Accounts Receivable/Inventory		$	469,143	$	2,163,848	$	814,546	$	327,868	$	129,190	$	167,029	$	3,362,138		$	31,816		$	7,465,578		$	1,280,093	$	1,799,055	$	750,442	$	298,949	$	116,516	$	109,993	$	3,732,718		$	12,175		$	8,099,941
Agriculture			2,134		10,521		5,608		2,846		857		1,022		119,042			—			142,030			12,904		5,969		4,630		2,488		681		811		142,508			686			170,677
Overdrafts			—		—		—		—		—		—		6,291			—			6,291			—		—		—		—		—		—		38,236			—			38,236
Total Commercial and industrial			471,277		2,174,369		820,154		330,714		130,047		168,051		3,487,471			31,816			7,613,899			1,292,997		1,805,024		755,072		301,437		117,197		110,804		3,913,462			12,861			8,308,854
Specialty lending:	Specialty lending:																					Specialty lending:
Asset-based lending			381		41,195		46,958		—		—		—		417,326			—			505,860			13,279		45,178		43,403		—		—		—		443,977			—			545,837
Total Specialty lending			381		41,195		46,958		—		—		—		417,326			—			505,860			13,279		45,178		43,403		—		—		—		443,977			—			545,837
Commercial real estate:	Commercial real estate:																					Commercial real estate:
Owner-occupied			222,719		655,646		463,030		205,136		157,972		237,072		30,383			—			1,971,958			446,181		615,430		425,538		191,426		149,627		218,128		92,485			—			2,138,815
Non-owner-occupied			299,175		980,164		628,839		490,943		117,452		339,899		9,973			—			2,866,445			367,756		999,661		585,175		474,868		117,895		334,057		11,455			—			2,890,867
Farmland			16,236		65,635		261,388		28,963		17,528		53,334		32,177			—			475,261			65,266		63,609		234,913		25,453		17,015		43,179		34,641			56			484,132
5+ Multi-family			32,049		30,783		98,196		19,354		1,687		7,255		4,485			—			193,809			30,139		52,827		71,699		19,219		1,674		7,166		3,779			—			186,503
1-4 Family construction			16,137		45,105		741		6,753		—		—		2,412			—			71,148			27,681		41,091		—		160		—		—		2,743			902			72,577
General construction			54,487		541,587		168,536		61,272		62		444		14,501			—			840,889			166,905		616,901		111,176		44,191		40		428		13,298			—			952,939
Total Commercial real estate			640,803		2,318,920		1,620,730		812,421		294,701		638,004		93,931			—			6,419,510			1,103,928		2,389,519		1,428,501		755,317		286,251		602,958		158,401			958			6,725,833
Consumer real estate:	Consumer real estate:																					Consumer real estate:
HELOC			—		195		514		344		567		6,529		302,902			1,692			312,743			181		—		657		296		556		6,292		309,724			2,096			319,802
First lien: 1-4 family			182,247		803,684		675,494		188,428		55,015		153,632		19			—			2,058,519			382,504		777,416		642,288		182,611		51,162		148,059		16			—			2,184,056
Junior lien: 1-4 family			1,689		8,371		5,699		3,046		1,241		1,959		47			—			22,052			4,886		9,105		5,197		2,863		1,115		1,806		62			—			25,034
Total Consumer real estate			183,936		812,250		681,707		191,818		56,823		162,120		302,968			1,692			2,393,314			387,571		786,521		648,142		185,770		52,833		156,157		309,802			2,096			2,528,892
Consumer:	Consumer:																					Consumer:
Revolving line			179		971		—		—		—		—		58,028			1,270			60,448			1,381		906		—		—		—		—		57,100			1,161			60,548
Auto			2,666		9,014		6,794		4,577		810		486		—			—			24,347			5,395		8,247		5,883		3,891		616		348		—			—			24,380
Other			6,983		29,744		1,691		1,635		1,419		2,311		4,237			—			48,020			12,287		28,338		1,446		1,476		1,285		2,264		40,567			—			87,663
Total Consumer			9,828		39,729		8,485		6,212		2,229		2,797		62,265			1,270			132,815			19,063		37,491		7,329		5,367		1,901		2,612		97,667			1,161			172,591
Credit cards:	Credit cards:																					Credit cards:
Consumer			—		—		—		—		—		—		171,735			—			171,735			—		—		—		—		—		—		178,456			—			178,456
Commercial			—		—		—		—		—		—		225,365			—			225,365			—		—		—		—		—		—		218,836			—			218,836
Total Credit cards			—		—		—		—		—		—		397,100			—			397,100			—		—		—		—		—		—		397,292			—			397,292
Leases and other:	Leases and other:																					Leases and other:
Leases			—		—		—		814		—		1,323		—			—			2,137			—		—		—		814		—		1,306		—			—			2,120
Other			536		98,148		45,585		59,213		21,641		5,585		36,357			—			267,065			45,839		96,193		42,556		31,440		18,406		1,117		55,188			—			290,739
Total Leases and other			536		98,148		45,585		60,027		21,641		6,908		36,357			—			269,202			45,839		96,193		42,556		32,254		18,406		2,423		55,188			—			292,859
Total loans		$	1,306,761	$	5,484,611	$	3,223,619	$	1,401,192	$	505,441	$	977,880	$	4,797,418		$	34,778		$	17,731,700		$	2,862,677	$	5,159,926	$	2,925,003	$	1,280,145	$	476,588	$	874,954	$	5,375,789		$	17,076		$	18,972,158

		December 31, 2021																						December 31, 2021
														Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type																																		Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




		Amortized Cost Basis by Origination Year - Term Loans														Amortized Cost - Revolving Loans				Amortized Cost - Revolving Loans Converted to Term Loans						Amortized Cost Basis by Origination Year - Term Loans
		2021		2020		2019		2018		2017		Prior							Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans		Total		2021		2020		2019		2018				2017			Prior				Total
Commercial and industrial:	Commercial and industrial:									��													Commercial and industrial:
Equipment/Accounts Receivable/Inventory		$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900				$	7,085,191						$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900		$	2,984,740	$	247	$	7,085,191
Agriculture			12,077		5,884		3,308		640		344		1,143					154,342							12,077		5,884		3,308		640		344		1,143			130,946		—		154,342
Overdrafts			—		—		—		—		—		—					18,587							—		—		—		—		—		—			18,587		—		18,587
Total Commercial and industrial			2,412,187		951,267		359,656		151,532		115,915		133,043					7,258,120							2,412,187		951,267		359,656		151,532		115,915		133,043			3,134,273		247		7,258,120
Specialty lending:	Specialty lending:																						Specialty lending:
Asset-based lending			34,552		49,373		—		—		—		—		331,282			—			415,207				34,552		49,373		—		—		—		—			331,282		—		415,207
Factoring			—		—		—		—		—		—		107,155			—			107,155				—		—		—		—		—		—			107,155		—		107,155
Total Specialty lending			34,552		49,373		—		—		—		—		438,437			—			522,362				34,552		49,373		—		—		—		—			438,437		—		522,362
Commercial real estate:	Commercial real estate:																						Commercial real estate:
Owner-occupied			680,135		519,448		226,631		177,576		91,539		159,482		11,727			—			1,866,538				680,135		519,448		226,631		177,576		91,539		159,482			11,727		—		1,866,538
Non-owner-occupied			1,058,025		689,167		591,886		162,491		135,100		258,541		10,969			—			2,906,179				1,058,025		689,167		591,886		162,491		135,100		258,541			10,969		—		2,906,179
Farmland			61,505		273,624		34,145		16,969		19,929		34,858		38,239			999			480,268				61,505		273,624		34,145		16,969		19,929		34,858			38,239		999		480,268
5+ Multi-family			58,268		95,024		41,426		1,206		511		6,820		2,057			—			205,312				58,268		95,024		41,426		1,206		511		6,820			2,057		—		205,312
1-4 Family construction			53,004		4,933		17,333		—		—		—		985			—			76,255				53,004		4,933		17,333		—		—		—			985		—		76,255
General construction			439,973		160,553		64,283		38,505		203		256		29,219			—			732,992				439,973		160,553		64,283		38,505		203		256			29,219		—		732,992
Total Commercial real estate			2,350,910		1,742,749		975,704		396,747		247,282		459,957		93,196			999			6,267,544				2,350,910		1,742,749		975,704		396,747		247,282		459,957			93,196		999		6,267,544
Consumer real estate:	Consumer real estate:																						Consumer real estate:
HELOC			248		547		327		574		646		6,363		320,410			2,523			331,638				248		547		327		574		646		6,363			320,410		2,523		331,638
First lien: 1-4 family			830,513		712,264		200,167		58,734		61,641		102,997		19			—			1,966,335				830,513		712,264		200,167		58,734		61,641		102,997			19		—		1,966,335
Junior lien: 1-4 family			9,114		6,299		3,361		1,150		820		1,299		17			—			22,060				9,114		6,299		3,361		1,150		820		1,299			17		—		22,060
Total Consumer real estate			839,875		719,110		203,855		60,458		63,107		110,659		320,446			2,523			2,320,033				839,875		719,110		203,855		60,458		63,107		110,659			320,446		2,523		2,320,033
Consumer:	Consumer:																						Consumer:
Revolving line			974		—		—		—		—		—		60,049			120			61,143				974		—		—		—		—		—			60,049		120		61,143
Auto			9,886		7,775		5,462		1,107		479		220		—			—			24,929				9,886		7,775		5,462		1,107		479		220			—		—		24,929
Other			31,391		2,041		1,949		1,543		2,542		708		2,889			—			43,063				31,391		2,041		1,949		1,543		2,542		708			2,889		—		43,063
Total Consumer			42,251		9,816		7,411		2,650		3,021		928		62,938			120			129,135				42,251		9,816		7,411		2,650		3,021		928			62,938		120		129,135
Credit cards:	Credit cards:																						Credit cards:
Consumer			—		—		—		—		—		—		180,296			—			180,296				—		—		—		—		—		—			180,296		—		180,296
Commercial			—		—		—		—		—		—		211,093			—			211,093				—		—		—		—		—		—			211,093		—		211,093
Total Credit cards			—		—		—		—		—		—		391,389			—			391,389				—		—		—		—		—		—			391,389		—		391,389
Leases and other:	Leases and other:																						Leases and other:
Leases			—		—		814		—		739		614		—			—			2,167				—		—		814		—		739		614			—		—		2,167
Other			99,952		44,113		58,164		22,344		5,631		779		49,138			—			280,121				99,952		44,113		58,164		22,344		5,631		779			49,138		—		280,121
Total Leases and other			99,952		44,113		58,978		22,344		6,370		1,393		49,138			—			282,288				99,952		44,113		58,978		22,344		6,370		1,393			49,138		—		282,288
Total loans		$	5,779,727	$	3,516,428	$	1,605,604	$	633,731	$	435,695	$	705,980	$	4,489,817		$	3,889		$	17,170,871			$	5,779,727	$	3,516,428	$	1,605,604	$	633,731	$	435,695	$	705,980		$	4,489,817	$	3,889	$	17,170,871

Accrued interest on loans totaled ~~$47.6~~$52.1 million and $45.2 million as of ~~March 31,~~June 30, 2022 and December 31, 2021, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable.

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans, net charge-offs, non-performing loans, and general economic conditions.

The Company utilizes a risk grading matrix to assign a rating to each of its commercial, commercial real estate, and construction real estate loans. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. The loan ratings are summarized into the following categories: Non-watch list, Watch, Special Mention, Substandard, and Doubtful. Any loan not classified in one of the categories described below is considered to be a Non-watch list loan. A description of the general characteristics of the loan rating categories is as follows:

A discussion of the credit quality indicators that impact each type of collateral securing Commercial and industrial loans is included below:

Equipment, accounts receivable, and inventory General commercial and industrial loans are secured by working capital assets and non-real estate assets. The general purpose of these loans is for financing capital expenditures and current operations for commercial and industrial entities. These assets are short-term in nature. In the case of accounts receivable and inventories, the repayment of debt is reliant upon converting assets into cash or through goods and services being sold and collected. ~~Collateral based-risk~~Collateral-based risk is due to aged short-term assets, which can be indicative of underlying issues with the borrower and lead to the value of the collateral being overstated.

Agriculture Agricultural loans are secured by non-real estate agricultural assets. These include shorter-term assets such as equipment, crops, and livestock. The risks associated with loans to finance crops or livestock include the borrower’s ability to successfully raise and market the commodity. Adverse weather conditions and other natural perils can dramatically affect farmers’ or ranchers’ production and ability to service debt. Volatile commodity prices present another significant risk for agriculture borrowers. Market price volatility and production cost volatility can affect both revenues and expenses.

Overdrafts Commercial overdrafts are typically short-term and unsecured.�� Some commercial borrowers tie their overdraft obligation to their line of credit, so any draw on the line of credit will satisfy the overdraft.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022																				June 30, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	443,997	$	2,048,497	$	745,218	$	298,758	$	120,445	$	157,038	$	3,138,826		$	31,698		$	6,984,477	$	1,249,012	$	1,710,330	$	674,224	$	276,684	$	110,670	$	101,103	$	3,497,161		$	12,096		$	7,631,280
Watch – Pass		15,779		103,276		32,486		22,977		4,771		2,150		103,130			—			284,569		18,156		64,990		64,685		7,187		3,426		2,946		88,499			48			249,937
Special Mention		—		2,984		2,386		2,600		570		2,654		38,673			—			49,867		8,842		17,013		10,903		12,065		2,089		948		88,598			—			140,458
Substandard		9,367		8,812		1,206		3,533		3,404		660		44,779			118			71,879		4,083		6,443		630		3,013		331		634		55,530			31			70,695
Doubtful		—		279		33,250		—		—		4,527		36,730			—			74,786		—		279		—		—		—		4,362		2,930			—			7,571
Total Equipment/Accounts Receivable/Inventory	$	469,143	$	2,163,848	$	814,546	$	327,868	$	129,190	$	167,029	$	3,362,138		$	31,816		$	7,465,578	$	1,280,093	$	1,799,055	$	750,442	$	298,949	$	116,516	$	109,993	$	3,732,718		$	12,175		$	8,099,941
Agriculture
Non-watch list – Pass	$	1,934	$	10,167	$	5,401	$	2,542	$	703	$	1,022	$	101,422		$	—		$	123,191	$	12,839	$	5,770	$	4,424	$	2,488	$	563	$	811	$	129,633		$	136		$	156,664
Watch – Pass		—		354		—		304		154		—		3,632			—			4,444		65		199		206		—		118		—		7,310			550			8,448
Special Mention		200		—		—		—		—		—		—			—			200		—		—		—		—		—		—		—			—			—
Substandard		—		—		207		—		—		—		13,988			—			14,195		—		—		—		—		—		—		5,565			—			5,565
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Agriculture	$	2,134	$	10,521	$	5,608	$	2,846	$	857	$	1,022	$	119,042		$	—		$	142,030	$	12,904	$	5,969	$	4,630	$	2,488	$	681	$	811	$	142,508		$	686		$	170,677

	December 31, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,299,784	$	874,786	$	325,630	$	141,667	$	106,141	$	130,153	$	2,750,764	$	247	$	6,629,172
Watch – Pass		68,322		34,324		25,572		5,056		1,794		698		106,177		—		241,943
Special Mention		5,886		—		2,600		592		1,742		997		41,209		—		53,026
Substandard		25,466		3,023		2,546		3,577		1,202		52		45,053		—		80,919
Doubtful		652		33,250		—		—		4,692		—		41,537		—		80,131
Total Equipment/Accounts Receivable/Inventory	$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740	$	247	$	7,085,191
Agriculture
Non-watch list – Pass	$	11,512	$	5,394	$	2,608	$	212	$	344	$	1,143	$	100,630	$	—	$	121,843
Watch – Pass		500		222		328		428		—		—		6,532		—		8,010
Special Mention		—		—		372		—		—		—		1,361		—		1,733
Substandard		65		268		—		—		—		—		22,423		—		22,756
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	12,077	$	5,884	$	3,308	$	640	$	344	$	1,143	$	130,946	$	—	$	154,342

A discussion of the credit quality indicators that impact each type of collateral securing Specialty loans is included below:

Asset-based lending General asset-based loans are secured by accounts receivable, inventory, equipment, and real estate. The purpose of these loans is for financing current operations for commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days or converting assets into cash or through goods and services being sold and collected. The Company tracks each individual borrower credit risk based on their loan to collateral position. Any borrower position where the underlying value of collateral is below the fair value of the loan is considered out-of-margin and inherently higher risk.

Factoring During the first quarter of 2022, the Company sold its factoring loan portfolio to an alternative financing company. Prior to the sale of this portfolio, factoring loans were secured by accounts receivable. The purpose of these loans was for financing current operations for trucking or other commercial customers. The repayment of debt was reliant upon collection of the accounts receivable within 30 to 90 days. The Company tracked each individual borrower’s credit risk based on their loan to collateral position. To assess credit risk, the portfolio was separated into two tiers and a specifically impaired category. Tier 1 were loans that had not experienced collateral coverage rates falling below an internally tracked threshold at any time during their relationship history. The internal threshold was lower than each customers’ actual contractual collateral coverage ratio. Tier 2 were loans that had experienced collateral coverage rates falling below the same internally tracked threshold during their relationship history. Loans individually evaluated were loans that had either experienced collateral coverage rates falling below an internally tracked threshold during their relationship history or had balances that were greater than an internally tracked threshold. Individually evaluated loans utilized a practical expedient for the purpose of determining the expected credit loss. Collateral dependent assets were loans placed on non-accrual and loans considered to be TDRs. The combination of these categories created an associated allowance to this portfolio of $1.0 million as of December 31, 2021.

The following table provides a summary of the amortized cost balance by risk rating for asset-based loans as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Asset-based lending				Asset-based lending
Risk	March 31, 2022		December 31, 2021		June 30, 2022		December 31, 2021
In-margin	$	495,318	$	409,844	$	526,650	$	409,844
Out-of-margin		10,542		5,363		19,187		5,363
Total	$	505,860	$	415,207	$	545,837	$	415,207

The following table provides a summary of the amortized cost balance by risk rating for factoring loans as of December 31, 2021 (in thousands):

A discussion of the credit quality indicators that impact each type of collateral securing Commercial real estate loans is included below:

Owner-occupied Owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The loans rely on the owner-occupied operations to service debt which cover a broad spectrum of industries. Real estate debt can carry a significant amount of leverage for a borrower to maintain.

Non-owner-occupied Non-owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The key element of risk in this type of lending is the cyclical nature of real estate markets. Although national conditions affect the overall real estate industry, the effect of national conditions on local markets is equally important. Factors such as unemployment rates, consumer demand, household formation, and the level of economic activity can vary widely from state to state and among metropolitan areas. In addition to geographic considerations, markets can be defined by property type. While all sectors are influenced by economic conditions, some sectors are more sensitive to certain economic factors than others.

Farmland Farmland loans are secured by real estate used for agricultural purposes such as crop and livestock production. Assets used as collateral are long-term assets that carry the ability to have longer amortizations and maturities. Longer terms carry the risk of added susceptibility to market conditions. The limited purpose of some Agriculture-related collateral affects credit risk because such collateral may have limited or no other uses to support values when loan repayment problems emerge.

5+ Multi-family 5+ multi-family loans are secured by a multi-family residential property. The primary risks associated with this type of collateral are largely driven by economic conditions. The national and local market conditions can change with unemployment rates or competing supply of multi-family housing. Tenants may not be able to afford their housing or have better options and this can result in increased vacancy. Rents may need to be lowered to fill apartment units. Increased vacancy and lower rental rates not only drive the borrower’s ability to repay debt but also contribute to how the collateral is valued.

1-4 Family construction 1-4 family construction loans are secured by 1-4 family residential real estate and are in the process of construction or improvements being made. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Market

conditions also play an important role in understanding the risk profile. Risk from adverse changes in market conditions from the start of development to completion can result in deflated collateral values

General construction General construction loans are secured by commercial real estate in process of construction or improvements being made and their repayment is dependent on the collateral’s completion. Construction lending presents unique risks not encountered in term financing of existing real estate. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Commercial properties under construction are susceptible to market and economic conditions. Demand from prospective customers may erode after construction begins because of a general economic slowdown or an increase in the supply of competing properties.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022																				June 30, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Owner-occupied
Non-watch list – Pass	$	220,777	$	654,551	$	451,647	$	175,858	$	156,402	$	230,287	$	30,283		$	—		$	1,919,805	$	440,982	$	608,269	$	411,289	$	159,821	$	148,077	$	213,990	$	92,385		$	—		$	2,074,813
Watch – Pass		1,942		820		10,090		9,843		1,048		3,466		—			—			27,209		1,962		351		12,989		8,588		1,041		1,360		—			—			26,291
Special Mention		—		90		1,263		17,091		—		—		—			—			18,444		1,919		6,810		1,232		21,326		—		—		—			—			31,287
Substandard		—		185		30		2,344		522		3,319		100			—			6,500		1,318		—		28		1,691		509		2,778		100			—			6,424
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Owner-occupied	$	222,719	$	655,646	$	463,030	$	205,136	$	157,972	$	237,072	$	30,383		$	—		$	1,971,958	$	446,181	$	615,430	$	425,538	$	191,426	$	149,627	$	218,128	$	92,485		$	—		$	2,138,815
Non-owner-occupied
Non-watch list – Pass	$	270,118	$	934,677	$	620,352	$	452,911	$	94,777	$	298,577	$	9,973		$	—		$	2,681,385	$	338,699	$	954,471	$	585,175	$	463,417	$	94,034	$	292,791	$	11,455		$	—		$	2,740,042
Watch – Pass		29,057		45,487		—		38,032		22,675		5,228		—			—			140,479		29,057		45,190		—		11,451		23,861		5,177		—			—			114,736
Special Mention		—		—		8,487		—		—		36,069		—			—			44,556		—		—		—		—		—		36,069		—			—			36,069
Substandard		—		—		—		—		—		25		—			—			25		—		—		—		—		—		20		—			—			20
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Non-owner-occupied	$	299,175	$	980,164	$	628,839	$	490,943	$	117,452	$	339,899	$	9,973		$	—		$	2,866,445	$	367,756	$	999,661	$	585,175	$	474,868	$	117,895	$	334,057	$	11,455		$	—		$	2,890,867
Farmland
Non-watch list – Pass	$	12,236	$	44,152	$	234,926	$	21,444	$	3,302	$	51,476	$	23,939		$	—		$	391,475	$	49,811	$	43,474	$	232,869	$	18,689	$	3,081	$	39,172	$	26,702		$	56		$	413,854
Watch – Pass		—		2,241		11,214		—		227		1,055		—			—			14,737		1,628		2,060		1,261		104		219		3,204		—			—			8,476
Special Mention		4,000		3,800		—		6,583		13,983		—		7,274			—			35,640		13,827		3,733		741		6,458		13,700		—		7,274			—			45,733
Substandard		—		15,442		15,248		936		16		803		964			—			33,409		—		14,342		42		202		15		803		665			—			16,069
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Farmland	$	16,236	$	65,635	$	261,388	$	28,963	$	17,528	$	53,334	$	32,177		$	—		$	475,261	$	65,266	$	63,609	$	234,913	$	25,453	$	17,015	$	43,179	$	34,641		$	56		$	484,132
5+ Multi-family
Non-watch list – Pass	$	32,049	$	30,783	$	98,196	$	19,354	$	1,687	$	7,255	$	4,485		$	—		$	193,809	$	30,139	$	52,827	$	71,699	$	19,219	$	1,674	$	7,166	$	3,779		$	—		$	186,503
Watch – Pass		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Special Mention		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Substandard		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total 5+ Multi-family	$	32,049	$	30,783	$	98,196	$	19,354	$	1,687	$	7,255	$	4,485		$	—		$	193,809	$	30,139	$	52,827	$	71,699	$	19,219	$	1,674	$	7,166	$	3,779		$	—		$	186,503
1-4 Family construction
Non-watch list – Pass	$	16,137	$	45,105	$	741	$	6,753	$	—	$	—	$	2,412		$	—		$	71,148	$	27,681	$	41,091	$	—	$	160	$	—	$	—	$	2,743		$	902		$	72,577
Watch – Pass		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Special Mention		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Substandard		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total 1-4 Family construction	$	16,137	$	45,105	$	741	$	6,753	$	—	$	—	$	2,412		$	—		$	71,148	$	27,681	$	41,091	$	—	$	160	$	—	$	—	$	2,743		$	902		$	72,577
General construction
Non-watch list – Pass	$	54,487	$	521,028	$	168,536	$	61,186	$	62	$	427	$	14,501		$	—		$	820,227	$	166,905	$	616,901	$	111,176	$	44,105	$	40	$	411	$	13,298		$	—		$	952,836
Watch – Pass		—		4,114		—		—		—		—		—			—			4,114		—		—		—		—		—		—		—			—			—
Special Mention		—		16,445		—		—		—		—		—			—			16,445		—		—		—		—		—		—		—			—			—
Substandard		—		—		—		—		—		17		—			—			17		—		—		—		—		—		17		—			—			17
Doubtful		—		—		—		86		—		—		—			—			86		—		—		—		86		—		—		—			—			86
Total General construction	$	54,487	$	541,587	$	168,536	$	61,272	$	62	$	444	$	14,501		$	—		$	840,889	$	166,905	$	616,901	$	111,176	$	44,191	$	40	$	428	$	13,298		$	—		$	952,939

	December 31, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Owner-occupied
Non-watch list – Pass	$	679,662	$	507,220	$	208,376	$	174,352	$	89,588	$	154,920	$	11,627	$	—	$	1,825,745
Watch – Pass		191		10,891		16,493		1,055		1,143		1,572		—		—		31,345
Special Mention		93		1,304		—		—		—		—		—		—		1,397
Substandard		189		33		1,762		2,169		808		2,990		100		—		8,051
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	680,135	$	519,448	$	226,631	$	177,576	$	91,539	$	159,482	$	11,727	$	—	$	1,866,538
Non-owner-occupied
Non-watch list – Pass	$	976,097	$	679,313	$	536,084	$	143,243	$	129,820	$	219,701	$	10,969	$	—	$	2,695,227
Watch – Pass		57,052		1,277		55,802		19,248		5,280		2,587		—		—		141,246
Special Mention		24,876		8,577		—		—		—		36,223		—		—		69,676
Substandard		—		—		—		—		—		30		—		—		30
Doubtful		—		—		—		—		—		—		—		—		—
Total Non-owner-occupied	$	1,058,025	$	689,167	$	591,886	$	162,491	$	135,100	$	258,541	$	10,969	$	—	$	2,906,179
Farmland
Non-watch list – Pass	$	40,526	$	246,955	$	26,332	$	2,147	$	19,199	$	29,136	$	28,276	$	—	$	392,571
Watch – Pass		2,263		10,177		—		823		213		4,889		—		—		18,365
Special Mention		3,800		—		6,875		13,983		517		—		8,999		—		34,174
Substandard		14,916		16,492		938		16		—		833		964		999		35,158
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	61,505	$	273,624	$	34,145	$	16,969	$	19,929	$	34,858	$	38,239	$	999	$	480,268
5+ Multi-family
Non-watch list – Pass	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057	$	—	$	205,312
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057	$	—	$	205,312
1-4 Family construction
Non-watch list – Pass	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985	$	—	$	76,255
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985	$	—	$	76,255
General construction
Non-watch list – Pass	$	436,696	$	160,553	$	62,675	$	38,505	$	203	$	239	$	29,219	$	—	$	728,090
Watch – Pass		3,277		—		—		—		—		—		—		—		3,277
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		1,522		—		—		17		—		—		1,539
Doubtful		—		—		86		—		—		—		—		—		86
Total General construction	$	439,973	$	160,553	$	64,283	$	38,505	$	203	$	256	$	29,219	$	—	$	732,992

A discussion of the credit quality indicators that impact each type of collateral securing Consumer real estate loans is included below:

HELOC HELOC loans are revolving lines of credit secured by 1-4 family residential property. The primary risk is the borrower’s inability to repay debt. Revolving notes are often associated with HELOCs that can be secured by real estate without a 1st lien priority. Collateral is susceptible to market volatility impacting home values or economic downturns.

First lien: 1-4 family First lien 1-4 family loans are secured by a first lien on 1-4 family residential property. These term loans carry longer maturities and amortizations. The longer tenure exposes the borrower to multiple economic cycles, coupled with longer amortizations that result in smaller principal reduction early in the life of the loan. Collateral is susceptible to market volatility impacting home values.

Junior lien: 1-4 family Junior lien 1-4 family loans are secured by a junior lien on 1-4 family residential property. The Company’s primary risk is the borrower’s inability to repay debt and not being in a first lien position. Collateral is susceptible to market volatility impacting home values or economic downturns.

A borrower is considered non-performing if the Company has ceased the recognition of interest and the loan is placed on non-accrual. Charge-offs and borrower performance are tracked on a loan origination vintage basis. Certain vintages, based on their maturation cycle, could be at higher risk due to collateral-based risk factors.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022																				June 30, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
HELOC
Performing	$	—	$	195	$	514	$	206	$	164	$	4,873	$	302,804		$	1,538		$	310,294	$	181	$	—	$	575	$	159	$	192	$	4,784	$	309,633		$	1,933		$	317,457
Non-performing		—		—		—		138		403		1,656		98			154			2,449		—		—		82		137		364		1,508		91			163			2,345
Total HELOC	$	—	$	195	$	514	$	344	$	567	$	6,529	$	302,902		$	1,692		$	312,743	$	181	$	—	$	657	$	296	$	556	$	6,292	$	309,724		$	2,096		$	319,802
First lien: 1-4 family
Performing	$	182,247	$	803,684	$	675,440	$	188,225	$	54,978	$	152,556	$	19		$	—		$	2,057,149	$	382,504	$	776,840	$	642,235	$	182,367	$	51,162	$	146,329	$	16		$	—		$	2,181,453
Non-performing		—		—		54		203		37		1,076		—			—			1,370		—		576		53		244		—		1,730		—			—			2,603
Total First lien: 1-4 family	$	182,247	$	803,684	$	675,494	$	188,428	$	55,015	$	153,632	$	19		$	—		$	2,058,519	$	382,504	$	777,416	$	642,288	$	182,611	$	51,162	$	148,059	$	16		$	—		$	2,184,056
Junior lien: 1-4 family
Performing	$	1,689	$	8,371	$	5,699	$	3,046	$	1,234	$	1,893	$	47		$	—		$	21,979	$	4,886	$	9,105	$	5,197	$	2,863	$	1,115	$	1,742	$	62		$	—		$	24,970
Non-performing		—		—		—		—		7		66		—			—			73		—		—		—		—		—		64		—			—			64
Total Junior lien: 1-4 family	$	1,689	$	8,371	$	5,699	$	3,046	$	1,241	$	1,959	$	47		$	—		$	22,052	$	4,886	$	9,105	$	5,197	$	2,863	$	1,115	$	1,806	$	62		$	—		$	25,034

A discussion of the credit quality indicators that impact each type of collateral securing Consumer loans is included below:

Revolving line Consumer Revolving lines of credit are secured by consumer assets other than real estate. The primary risk associated with this collateral is related to market volatility and the value of the underlying financial assets.

Auto Direct consumer auto loans are secured by new and used consumer vehicles. The primary risk with this collateral class is the rate at which the collateral depreciates.

Other This category includes Other consumer loans made to an individual. The primary risk for this category is for those loans where the loan is unsecured. This collateral type also includes other unsecured lending such as consumer overdrafts.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022																				June 30, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Revolving line
Performing	$	179	$	971	$	—	$	—	$	—	$	—	$	57,532		$	1,270		$	59,952	$	1,381	$	906	$	—	$	—	$	—	$	—	$	56,609		$	1,161		$	60,057
Non-performing		—		—		—		—		—		—		496			—			496		—		—		—		—		—		—		491			—			491
Total Revolving line	$	179	$	971	$	—	$	—	$	—	$	—	$	58,028		$	1,270		$	60,448	$	1,381	$	906	$	—	$	—	$	—	$	—	$	57,100		$	1,161		$	60,548
Auto
Performing	$	2,666	$	8,990	$	6,794	$	4,543	$	810	$	486	$	—		$	—		$	24,289	$	5,395	$	8,225	$	5,881	$	3,860	$	616	$	348	$	—		$	—		$	24,325
Non-performing		—		24		—		34		—		—		—			—			58		—		22		2		31		—		—		—			—			55
Total Auto	$	2,666	$	9,014	$	6,794	$	4,577	$	810	$	486	$	—		$	—		$	24,347	$	5,395	$	8,247	$	5,883	$	3,891	$	616	$	348	$	—		$	—		$	24,380
Other
Performing	$	6,983	$	29,744	$	1,676	$	1,635	$	1,419	$	2,309	$	4,237		$	—		$	48,003	$	12,272	$	28,338	$	1,446	$	1,476	$	1,285	$	2,264	$	40,567		$	—		$	87,648
Non-performing		—		—		15		—		—		2		—			—			17		15		—		—		—		—		—		—			—			15
Total Other	$	6,983	$	29,744	$	1,691	$	1,635	$	1,419	$	2,311	$	4,237		$	—		$	48,020	$	12,287	$	28,338	$	1,446	$	1,476	$	1,285	$	2,264	$	40,567		$	—		$	87,663

A discussion of the credit quality indicators that impact Credit card loans is included below:

Consumer Consumer credit card loans are revolving loans made to individuals. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. The highly competitive environment for credit card lending provides consumers with ample opportunity to hold several credit cards from different issuers and to pay only minimum monthly payments on outstanding balances. In such an environment, borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a personal catastrophic event.

The consumer credit card portfolio is segmented by borrower payment activity. Transactors are defined as accounts that pay off their balance by the end of each statement cycle. Revolvers are defined as an account that carries a balance from statement cycle to the next. These accounts incur monthly finance charges, and, sometimes, late fees. Revolvers are inherently higher risk and are tracked by ~~FICO~~credit score.

Commercial Commercial credit card loans are revolving loans made to small and commercial businesses. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. Borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a catastrophic event.

The commercial credit card portfolio is segmented by current and past due payment status. A borrower is past due after 30 days. In general, commercial credit card customers do not have incentive to hold a balance resulting in paying interest on credit card debt as commercial customers will typically have other debt obligations with lower interest rates in which they can utilize for capital.

The following table provides a summary of the amortized cost balance of consumer credit cards by risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Consumer				Consumer
Risk	March 31, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Transactor accounts	$	54,503	$	57,777	$	60,138	$	57,777
Revolver accounts (by FICO score):
Revolver accounts (by credit score):
Less than 600		4,395		6,065		4,268		6,065
600-619		2,534		2,416		2,398		2,416
620-639		4,361		4,158		4,523		4,158
640-659		7,723		7,854		8,114		7,854
660-679		9,251		13,185		9,393		13,185
680-699		11,881		15,365		11,198		15,365
700-719		14,462		16,308		14,401		16,308
720-739		13,811		14,753		13,880		14,753
740-759		12,573		12,734		12,755		12,734
760-779		12,806		8,879		13,048		8,879
780-799		11,629		7,048		11,902		7,048
800-819		7,598		5,787		7,807		5,787
820-839		3,441		5,026		3,813		5,026
840+		767		2,941		818		2,941
Total	$	171,735	$	180,296	$	178,456	$	180,296

The following table provides a summary of the amortized cost balance of commercial credit cards by risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Commercial				Commercial
Risk	March 31, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Current	$	214,300	$	200,402	$	210,174	$	200,402
Past Due		11,065		10,691		8,662		10,691
Total	$	225,365	$	211,093	$	218,836	$	211,093

A discussion of the credit quality indicators that impact each type of collateral securing Leases and other loans is included below:

Leases Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family and other personal expenditure purposes. All leases are secured by the lease between the lessor and the lessee. These assignments grant the creditor a security interest in the rent stream from any lease, an important source of cash to pay the note in case of the borrower’s default.

Other Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans. Risk associated with other loans is tied to the underlying collateral by each type of loan. Collateral is generally equipment, accounts receivable, inventory, 1-4 family residential construction and susceptible to the same risks mentioned with those collateral types previously. Other risks consist of collateral that is secured by the stock of a non-depository financial institution, which can be unlisted stock with a limited market for the stock, or volatility of asset values driven by market performance.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Leases				Other				Leases				Other
Risk	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Non-watch list – Pass	$	2,137	$	2,167	$	266,334	$	279,401	$	2,120	$	2,167	$	289,998	$	279,401
Watch – Pass		—		—		706		695		—		—		716		695
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		25		25		—		—		25		25
Doubtful		—		—		—		—		—		—		—		—
Total	$	2,137	$	2,167	$	267,065	$	280,121	$	2,120	$	2,167	$	290,739	$	280,121

The allowance for credit losses (ACL) is a valuation account that is deducted from loans’ and held-to-maturity (HTM) securities’ amortized cost bases to present the net amount expected to be collected on the instrument. Loans and HTM securities are charged off against the ACL when management believes the balance has become uncollectible. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses and is tracked over an economic cycle to capture a ‘through the cycle’ loss history. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in portfolio industry-based segmentation,

risk rating and ~~FICO~~credit score changes, average prepayment rates, changes in environmental conditions, or other relevant factors. For economic forecasts, the Company uses the Moody’s baseline scenario. The Company has developed a dynamic reasonable and supportable forecast period that ranges from one to three years and changes based on economic conditions. Due to current economic conditions, the Company’s reasonable and supportable forecast period is one year. After the reasonable and supportable forecast period, the Company reverts to historical losses. The reversion method applied to each portfolio can either be cliff or straight-line over four quarters.

The ACL is measured on a collective (pool) basis when similar risk characteristics exists. The ACL also incorporates qualitative factors which represent adjustments to historical credit loss experience for items such as concentrations of credit and results of internal loan review. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods. The Company’s portfolio segmentation consists of Commercial and industrial, Specialty lending, Commercial real estate, Consumer real estate, Consumer, Credit cards, Leases and other, and Held-to-maturity securities. Multiple modeling techniques are used to measure credit losses based on the portfolio.

The ACL for Commercial & industrial and Leases and other segments are measured using a probability of default and loss given default method. Primary risk drivers within the segment are risk ratings of the individual loans along with changes of macro-economic variables such as interest rates and farm income. The ACL for commercial & industrial loans is calculated by modeling probability of default (PD) over future periods multiplied by historical loss given default rates (LGD) multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

Collateral positions for Specialty lending loans are continuously monitored by the Company and the borrower is required to continually adjust the amount of collateral securing the loan. Credit losses are measured for any position where the amortized cost basis is greater than the fair value of the collateral. The ACL for specialty lending loans is calculated by using a ~~bottom up~~bottom-up approach comparing collateral values to outstanding balances.

The ACL for the Commercial real estate segment is measured using a PD and LGD method. Primary risk characteristics within the segment are risk ratings of the individual loans, along with changes of macro-economic variables, such as interest rates, CRE price index, median household income, construction activity, farm income, and vacancy rates. The ACL for commercial real estate loans is calculated by modeling PD over future periods based on peer bank data. The PD loss rate is then multiplied by historical LGD multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

The ACL for the Consumer real estate and Consumer segments are measured using an origination vintage loss rate method applied to the loans’ amortized cost balance. The primary risk driver within the segments is year of origination along with changes of macro-economic variables such as unemployment and the home price index.

The Credit card segment contains both consumer and commercial credit cards. The ACL for Consumer credit cards is measured using a PD and LGD method for Revolvers and average historical loss rates across a defined lookback period for Transactors. The PD and LGD method used for Revolvers is similar in nature to the method used in the Commercial & industrial and Commercial real estate segments. Primary risk drivers within the segment are ~~FICO~~credit ratings of the individual card holders along with changes of macro-economic variables such as unemployment and retail sales. The ACL for Commercial credit cards is measured using roll-rate loss rate method based on days past due.

The ACL for the State and political HTM securities segment is measured using a loss rate method based on historical bond rating transitions. Primary risk drivers within the segment are bond ratings in the portfolio along with changes of macro-economic conditions. There is no ACL for the U.S. Agency and GSE mortgage-backed HTM securities portfolios as they are considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. For further discussion on these securities, including the aging and amortized cost balance of HTM securities, see Note 5, “Securities.”

See the credit quality indicators presented previously for a summary of current risk in the Company’s portfolio. Changes in economic forecasts will affect all portfolio segments, updated financial records from borrowers will affect portfolio segments by risk rating, updated ~~FICO~~credit scores will affect consumer credit cards,

payment performance will affect consumer and commercial credit card portfolio segments, and updated bond credit ratings will affect held-to-maturity securities. The Company actively monitors all credit quality indicators for risk changes that will influence the current estimate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Credit card receivables do not have stated maturities. In determining the estimated life of a credit card receivable, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the credit card balance. Expected credit losses for credit cards are determined by estimating the amount and timing of principal payments expected to be received as payment for the balance outstanding as of the reporting period until the expected payments have been fully allocated. The ACL is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually include loans on nonaccrual, loans classified as TDRs, or any loans specifically identified, and are excluded from the collective evaluation. When it is determined that payment of interest or recovery of all principal is questionable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for undiscounted selling costs as appropriate. All loans are classified as collateral dependent if placed on non-accrual or are considered to be a TDR.

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The allowance for credit loss on a TDR is measured using the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the allowance for credit loss is determined by discounting the expected future cash flows, including contractual payments and value of collateral at termination, at the original effective interest rate of the loan.

This table provides a rollforward of the allowance for credit losses by portfolio segment for the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021 (in thousands):

		Three Months Ended March 31, 2022																														Three Months Ended June 30, 2022
		Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total				Commercial and industrial			Specialty lending		Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total
Allowance for credit losses:	Allowance for credit losses:																														Allowance for credit losses:
Beginning balance		$	123,732		$	1,738		$	56,265		$	3,921		$	845		$	6,075		$	2,195		$	194,771		$	1,940	$	196,711			$	118,668		$	861	$	47,310		$	4,037		$	418		$	5,819		$	2,175		$	179,288		$	2,045	$	181,333
Charge-offs			(8,202	)		—			—			(32	)		(158	)		(1,465	)		—			(9,857	)		—		(9,857	)			(28,015	)		—		—			(25	)		(161	)		(1,468	)		—			(29,669	)		—		(29,669	)
Recoveries			661			—			362			28			29			399			—			1,479			—		1,479				729			1		23			82			31			675			—			1,541			—		1,541
Provision			2,477			(877	)		(9,317	)		120			(298	)		810			(20	)		(7,105	)		105		(7,000	)			21,560			271		(10,093	)		471			575			553			(151	)		13,186			214		13,400
Ending balance - ACL		$	118,668		$	861		$	47,310		$	4,037		$	418		$	5,819		$	2,175		$	179,288		$	2,045	$	181,333			$	112,942		$	1,133	$	37,240		$	4,565		$	863		$	5,579		$	2,024		$	164,346		$	2,259	$	166,605
Allowance for credit losses on off-balance sheet credit exposures:	Allowance for credit losses on off-balance sheet credit exposures:																														Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance		$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88	$	2,588			$	2,178		$	186	$	418		$	124		$	13		$	—		$	62		$	2,981		$	107	$	3,088
Provision			439			26			(62	)		18			13			—			47			481			19		500				—			—		—			—			—			—			—			—			—		—
Ending balance - ACL on off-balance sheet		$	2,178		$	186		$	418		$	124		$	13		$	—		$	62		$	2,981		$	107	$	3,088			$	2,178		$	186	$	418		$	124		$	13		$	—		$	62		$	2,981		$	107	$	3,088

		Three Months Ended March 31, 2021																														Three Months Ended June 30, 2021
		Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total				Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:	Allowance for credit losses:																														Allowance for credit losses:
Beginning balance		$	122,700		$	5,219		$	61,931		$	6,586		$	1,480		$	15,786		$	2,271		$	215,973		$	2,610	$	218,583			$	119,568		$	4,673		$	60,043		$	4,183		$	603		$	12,144		$	1,600		$	202,814		$	2,959		$	205,773
Charge-offs			(4,717	)		—			—			(76	)		(109	)		(1,692	)		(8	)		(6,602	)		—		(6,602	)			(2	)		(31,945	)		—			(10	)		(139	)		(1,477	)		—			(33,573	)		—			(33,573	)
Recoveries			126			115			509			59			23			442			18			1,292			—		1,292				3,635			36			838			54			64			572			—			5,199			—			5,199
Provision			1,459			(661	)		(2,397	)		(2,386	)		(791	)		(2,392	)		(681	)		(7,849	)		349		(7,500	)			(5,080	)		33,137			(4,147	)		1,580			329			504			(200	)		26,123			(123	)		26,000
Ending balance - ACL		$	119,568		$	4,673		$	60,043		$	4,183		$	603		$	12,144		$	1,600		$	202,814		$	2,959	$	205,773			$	118,121		$	5,901		$	56,734		$	5,807		$	857		$	11,743		$	1,400		$	200,563		$	2,836		$	203,399
Allowance for credit losses on off-balance sheet credit exposures:	Allowance for credit losses on off-balance sheet credit exposures:																														Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance		$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55	$	5,588			$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55		$	5,588
Provision			—			—			—			—			—			—			—			—			—		—				(1,515	)		(74	)		(121	)		(3	)		(173	)		—			(150	)		(2,036	)		36			(2,000	)
Ending balance - ACL on off-balance sheet		$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55	$	5,588			$	2,344		$	213		$	326		$	142		$	208		$	—		$	264		$	3,497		$	91		$	3,588

The allowance for credit losses on off-balance sheet credit exposures is recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets. See Note 10 “Commitments, Contingencies and Guarantees.”

The following tables provide the amortized cost balance of financial assets considered collateral dependent as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022						June 30, 2022
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance		Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	91,053	$	500	$	81,686	$	14,412	$	340	$	13,856
Agriculture		—		—		—		—		—		—
Total Commercial and industrial		91,053		500		81,686		14,412		340		13,856
Specialty lending:
Asset-based lending		11,797		—		11,797		—		—		—
Total Specialty lending		11,797		—		11,797		—		—		—
Commercial real estate:
Owner-occupied		2,293		—		2,293		2,258		—		2,258
Non-owner-occupied		—		—		—		—		—		—
Farmland		440		—		440		420		—		420
5+ Multi-family		—		—		—		—		—		—
1-4 Family construction		—		—		—		—		—		—
General construction		103		—		103		103		—		103
Total Commercial real estate		2,836		—		2,836		2,781		—		2,781
Consumer real estate:
HELOC		2,449		—		2,449		2,346		—		2,346
First lien: 1-4 family		1,370		—		1,370		2,027		—		2,027
Junior lien: 1-4 family		73		—		73		64		—		64
Total Consumer real estate		3,892		—		3,892		4,437		—		4,437
Consumer:
Revolving line		496		—		496		491		—		491
Auto		58		—		58		55		—		55
Other		18		—		18		15		—		15
Total Consumer		572		—		572		561		—		561
Leases and other:
Leases		—		—		—		—		—		—
Other		25		—		25		25		—		25
Total Leases and other		25		—		25		25		—		25
Total loans	$	110,175	$	500	$	100,808	$	22,216	$	340	$	21,660

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The ~~Company’s~~Company��s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. These modifications allow the debtor short-term cash relief to allow them to improve their financial condition. The Company’s restructured loans are considered collateral dependent and evaluated as part of the allowance for credit loss as described above in the Allowance for Credit Losses section of this note.

The Company had 0 commitments to lend to borrowers with loan modifications classified as TDRs as of ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021. The Company monitors loan payments on an on-going basis to determine if a loan

~~loan~~ is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.

For the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2022, the Company had 2 commercial TDRs with a pre-modification loan balance of $5.1 million and ~~March 31,~~a post-modification loan balance of $4.3 million. For the three and six-month periods ended June 30, 2021, the Company had 0 new TDRs. For the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021, the Company had 0 TDRs for which there was a payment default within the 12 months following the restructure date.

This table provides detailed information about securities available for sale at ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2022										Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury	$	388,866	$	58	$	(6,789	)	$	382,135	$	763,497	$	80	$	(12,825	)	$	750,752
U.S. Agencies		153,489		554		(1,265	)		152,778		178,406		—		(3,159	)		175,247
Mortgage-backed		5,679,853		15,184		(286,815	)		5,408,222		4,893,628		567		(407,610	)		4,486,585
State and political subdivisions		2,101,114		18,327		(72,930	)		2,046,511		1,783,759		2,402		(123,786	)		1,662,375
Corporates		381,163		252		(15,330	)		366,085		409,719		2		(25,936	)		383,785
Collateralized loan obligations		194,364		12		(14	)		194,362		288,496		—		(8,024	)		280,472
Total	$	8,898,849	$	34,387	$	(383,143	)	$	8,550,093	$	8,317,505	$	3,051	$	(581,340	)	$	7,739,216

The following table presents contractual maturity information for securities available for sale at ~~March 31,~~June 30, 2022 (in thousands):

	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in 1 year or less	$	123,219	$	123,499	$	108,437	$	108,364
Due after 1 year through 5 years		1,141,112		1,121,962		1,571,301		1,533,973
Due after 5 years through 10 years		699,721		686,107		760,248		727,509
Due after 10 years		1,254,944		1,210,303		983,891		882,785
Total		3,218,996		3,141,871		3,423,877		3,252,631
Mortgage-backed securities		5,679,853		5,408,222		4,893,628		4,486,585
Total securities available for sale	$	8,898,849	$	8,550,093	$	8,317,505	$	7,739,216

Securities may be disposed of before contractual maturities due to sales by the Company or because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

For the ~~three~~six months ended ~~March 31,~~June 30, 2022, there were 0 sales of securities available for sale. For the ~~three~~six months ended ~~March 31,~~June 30, 2021, there were ~~$129.1~~$176.8 million in proceeds from sales of securities available for sale.

There were 0 gross realized gains for the ~~three~~six months ended ~~March 31,~~June 30, 2022. Securities transactions resulted in gross realized gains of $~~2.7~~$4.0 million for the ~~three~~six months ended ~~March 31,~~June 30, 2021. There were 0 gross realized losses for either the ~~three~~six months ended ~~March 31,~~June 30, 2022 or 2021.

There were ~~$9.3~~$9.8 billion and $10.2 billion of securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase agreements at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. Of these amounts, ~~$148.7~~securities with a market value of $140.7 million and $171.2 million ~~of securities~~ at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively, were pledged at the Federal Reserve Discount Window but were unencumbered as of those dates.

Accrued interest on securities available for sale totaled ~~$27.1~~$33.6 million and $45.8 million as of ~~March 31,~~June 30, 2022 and December 31, 2021, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of available-for-sale securities presented above. Further, the Company has elected not to measure an ACL for accrued interest receivable.

The following table shows the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

The unrealized losses in the Company’s investments were caused by changes in interest rates, and not from a decline in credit of the underlying issuers. The U.S. Treasury, U.S. Agency, and GSE mortgage-backed securities are all considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly

guaranteed by the U.S. government. The changes in fair value in the agency-backed portfolios are solely driven by change in interest rates caused by changing economic conditions. The Company has no knowledge of any

underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates.

For the State and political subdivision portfolio, the majority of the Company’s holdings are in general obligation bonds, which have a very low historical default rate due to issuers generally having unlimited taxing authority to service the debt. For the State and political, Corporate, and Collateralized loan obligations portfolios, the Company has a robust process for monitoring credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends.

As of ~~March 31,~~June 30, 2022 and December 31, 2021, there was no ACL related to the Company’s available-for-sale securities as the decline in fair value did not result from credit issues.

The following table shows the Company’s held-to-maturity investments’ amortized cost, fair value, and gross unrealized gains and losses at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively (in thousands):

March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses			Net Carrying Amount
June 30, 2022															Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses			Net Carrying Amount
U.S. Agencies	$	6,000	$	4	$	—		$	6,004	$	—		$	6,000	$	123,033	$	—	$	(1,177	)	$	121,856	$	—		$	123,033
Mortgage-backed		2,490,693		10		(66,501	)		2,424,202		—			2,490,693		3,088,814		160		(212,959	)		2,876,015		—			3,088,814
State and political subdivisions		2,105,539		363		(142,653	)		1,963,249		(2,045	)		2,103,494		2,497,694		648		(250,762	)		2,247,580		(2,259	)		2,495,435
Total	$	4,602,232	$	377	$	(209,154	)	$	4,393,455	$	(2,045	)	$	4,600,187	$	5,709,541	$	808	$	(464,898	)	$	5,245,451	$	(2,259	)	$	5,707,282

The following table presents contractual maturity information for securities held to maturity at ~~March 31,~~June 30, 2022 (in ~~thousands~~thousands):):

	Amortized		Fair
	Cost		Value		Amortized Cost		Fair Value
Due in 1 year or less	$	13,819	$	13,784	$	55,797	$	55,397
Due after 1 year through 5 years		151,022		144,816		341,617		333,267
Due after 5 years through 10 years		616,835		579,542		720,150		654,860
Due after 10 years		1,329,863		1,231,111		1,503,163		1,325,912
Total		2,111,539		1,969,253		2,620,727		2,369,436
Mortgage-backed securities		2,490,693		2,424,202		3,088,814		2,876,015
Total securities held to maturity	$	4,602,232	$	4,393,455	$	5,709,541	$	5,245,451

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were 0 sales of securities held to maturity during the ~~three~~six months ended ~~March~~June 30, 2022 or 2021.

During the first quarter of 2022, securities with an amortized cost of $3.0 billion and a fair value of $2.9 billion were transferred from the available-for-sale classification to the held-to-maturity classification as the Company has the positive intent and ability to hold these securities to maturity. Additionally, during the second quarter of 2022, securities with an amortized cost of $831.3 million and a fair value of $736.5 million were transferred from the available-for-sale classification to the held-to-maturity classification. The ~~transfer~~transfers of securities ~~was~~were made at fair value at the time of transfer. The unrealized holding loss at the time of transfer is retained in AOCI and will be amortized over the remaining life of the securities, offsetting the related amortization of discount or premium on the transferred securities. NaN gains or losses were recognized at the time of the ~~transfer.~~transfers. The amortized cost balance of securities held to maturity in the tables above includes a net unamortized unrealized loss of ~~$155.7~~$238.1 million at ~~March 31,~~June 30, 2022.

Accrued interest on securities held to maturity totaled ~~$17.0~~$21.6 million and $5.3 million ~~as March 31,~~at June 30, 2022 and December 31, 2021, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of held-to-maturity securities presented above. Further, the Company has elected not to measure an ACL for accrued interest receivable.

The following table shows the Company’s held-to-maturity investments’ gross unrealized losses and fair value, aggregated by length of time that individual securities have been in a continuous unrealized loss position, at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively (in thousands):

	Less than 12 months							12 months or more							Total							Less than 12 months							12 months or more							Total
March 31, 2022	Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
June 30, 2022																						Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
U.S. Agencies		—	$	—	$	—			—	$	—	$	—			—	$	—	$	—			11	$	121,856	$	(1,177	)		—	$	—	$	—			11	$	121,856	$	(1,177	)
Mortgage-backed		194		2,404,509		(66,501	)		—		—		—			194		2,404,509		(66,501	)		252		2,843,277		(212,959	)		—		—		—			252		2,843,277		(212,959	)
State and political subdivisions		1,205		1,625,062		(96,594	)		41		332,118		(46,059	)		1,246		1,957,180		(142,653	)		1,321		1,676,062		(200,246	)		44		357,949		(50,516	)		1,365		2,034,011		(250,762	)
Total		1,399	$	4,029,571	$	(163,095	)		41	$	332,118	$	(46,059	)		1,440	$	4,361,689	$	(209,154	)		1,584	$	4,641,195	$	(414,382	)		44	$	357,949	$	(50,516	)		1,628	$	4,999,144	$	(464,898	)

	Less than 12 months							12 months or more							Total							Less than 12 months							12 months or more							Total
December 31, 2021	Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
Mortgage-backed		12	$	317,887	$	(2,431	)		—	$	—	$	—			12	$	317,887	$	(2,431	)		12	$	317,887	$	(2,431	)		—	$	—	$	—			12	$	317,887	$	(2,431	)
State and political subdivisions		58		585,153		(12,494	)		28		217,579		(26,460	)		86		802,732		(38,954	)		58		585,153		(12,494	)		28		217,579		(26,460	)		86		802,732		(38,954	)
Total		70	$	903,040	$	(14,925	)		28	$	217,579	$	(26,460	)		98	$	1,120,619	$	(41,385	)		70	$	903,040	$	(14,925	)		28	$	217,579	$	(26,460	)		98	$	1,120,619	$	(41,385	)

The unrealized losses in the Company’s held-to-maturity portfolio were caused by changes in the interest rate environment. The U.S. Agency and GSE mortgage-backed securities are considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. Therefore, the Company’s expected lifetime loss for these portfolios is zero and there is no ACL recorded for this portfolio. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates.

For the State and political subdivision portfolio, the Company’s holdings are in general obligation bonds as well as private placement bonds, which have very low historical default rates due to issuers generally having unlimited taxing authority to service the debt. The Company has a robust process for monitoring credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends. The underlying bonds are evaluated for credit losses in conjunction with management’s estimate of the ACL based on credit rating.

The following tables show the amortized cost basis by credit rating of the Company’s held-to-maturity investments at ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Amortized Cost Basis by Credit Rating - HTM Debt Securities														Amortized Cost Basis by Credit Rating - HTM Debt Securities
March 31, 2022	AAA		AA		A		BBB		BB		CCC-C		Total
June 30, 2022															AAA		AA		A		BBB		BB		CCC-C		Total
State and political subdivisions:
Competitive	$	—	$	—	$	379,924	$	560,001	$	20,219	$	830	$	960,974	$	—	$	—	$	392,343	$	628,494	$	18,975	$	789	$	1,040,601
Utilities		342,489		690,649		81,855		29,572		—		—		1,144,565
Utilities and general obligation																576,670		769,033		84,104		26,722		564		—		1,457,093
Total state and political subdivisions	$	342,489	$	690,649	$	461,779	$	589,573	$	20,219	$	830	$	2,105,539	$	576,670	$	769,033	$	476,447	$	655,216	$	19,539	$	789	$	2,497,694

Competitive held-to-maturity securities include not-for-profit enterprises that provide public functions such as housing, higher education or healthcare, but do so in a competitive environment. It also includes project financings that can have relatively high enterprise risk, such as deals backed by revenues from sports or convention facilities or start-up transportation ventures.

Utilities and general obligation are public enterprises providing essential services with a monopoly or near-monopoly over the service area. This includes environmental utilities (water, sewer, solid waste), power utilities (electric distribution and generation, gas), and transportation utilities (airports, parking, toll roads, mass transit, ports).

All held-to-maturity securities were current and not past due at ~~March 31,~~June 30, 2022.

The following table presents the aging of past due held-to-maturity securities at December 31, 2021 (in ~~thousands~~thousands):):

There were net unrealized ~~losses~~gains on trading securities of ~~$280~~$26 thousand and ~~net unrealized losses of $40~~$1 thousand at ~~March 31,~~June 30, 2022 and 2021, respectively. Net unrealized gains and losses are included in trading and investment banking income on the

Company’s Consolidated Statements of Income. Securities sold not yet purchased

totaled $~~1.6~~$1.3 million and $3.2 million at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively, and are classified within the Other liabilities line of the Company’s Consolidated Balance Sheets.

The table below provides detailed information for Other securities at ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	March 31, 2022		December 31, 2021		June 30, 2022		December 31, 2021
FRB and FHLB stock	$	36,222	$	36,222	$	36,222	$	36,222
Equity securities with readily determinable fair values		53,056		64,149		40,639		64,149
Equity securities without readily determinable fair values		242,845		226,727		265,682		226,727
Total	$	332,123	$	327,098	$	342,543	$	327,098

Investment in FRB stock is based on the capital structure of the investing bank, and investment in FHLB stock is mainly tied to the level of borrowings from the FHLB. These holdings are carried at cost. Equity securities with readily determinable fair values are generally traded on an exchange and market prices are readily available. Equity securities without readily determinable fair values include equity investments which are held by a subsidiary qualified as a Small Business Investment Company, as well as investments in low-income housing partnerships within the areas the Company serves. Unrealized gains or losses on equity securities with and without readily determine fair values are recognized in the Investment securities ~~losses,~~gains, net line of the Company’s Consolidated Statements of Income.

The table below presents the components of Investments securities ~~losses,~~gains, net for the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021 (in thousands):

	Three Months Ended March 31,						Three Months Ended June 30,					Six Months Ended June 30,
	2022			2021			2022			2021		2022			2021
Investment securities losses, net
Investment securities gains, net
Available-for-sale debt securities:
Gains realized on sales	$	—		$	2,720		$	—		$	1,300	$	—		$	4,020
Equity securities with readily determinable fair values:
Fair value adjustments, net		(1,722	)		(13,918	)		(5,407	)		8,738		(7,129	)		(5,180	)
Equity securities without readily determinable fair values:
Fair value adjustments, net		1,200			2,862			(35	)		5,417		1,165			8,279
Total investment securities losses, net	$	(522	)	$	(8,336	)
Sales								66,162			—		66,162			—
Total investment securities gains, net							$	60,720		$	15,455	$	60,198		$	7,119

During June 2022, the Company sold the entirety of its Visa Inc. Class B common shares in a cash transaction which resulted in a pre-tax gain of $66.2 million. Prior to the sale, the Visa Inc. Class B shares had no carrying value on the Company’s Consolidated Balance Sheets as the Company had no historical cost basis in the shares.

Changes in the carrying amount of goodwill for the periods ended ~~March 31,~~June 30, 2022 and December 31, 2021 by reportable segment are as follows (in thousands):

	Commercial Banking		Institutional Banking		Personal Banking			Total			Commercial Banking		Institutional Banking		Personal Banking			Total
Balances as of January 1, 2022	$	59,419	$	51,332	$	63,767		$	174,518		$	59,419	$	51,332	$	63,767		$	174,518
Branch acquisition		3,694		—		4,013			7,707			3,694		—		4,013			7,707
Balances as of March 31, 2022	$	63,113	$	51,332	$	67,780		$	182,225
Balances as of June 30, 2022											$	63,113	$	51,332	$	67,780		$	182,225


Balances as of January 1, 2021	$	59,419	$	51,332	$	70,116		$	180,867		$	59,419	$	51,332	$	70,116		$	180,867
Sale of component of business segment		—		—		(6,349	)		(6,349	)		—		—		(6,349	)		(6,349	)
Balances as of December 31, 2021	$	59,419	$	51,332	$	63,767		$	174,518		$	59,419	$	51,332	$	63,767		$	174,518

The following table lists the finite-lived intangible assets that continue to be subject to amortization as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	As of March 31, 2022						As of June 30, 2022
	Core Deposit Intangible Assets		Customer Relationships		Total		Core Deposit Intangible Assets		Customer Relationships		Total
Gross carrying amount	$	50,059	$	73,512	$	123,571	$	50,059	$	73,512	$	123,571
Accumulated amortization		49,781		58,100		107,881		49,947		59,159		109,106
Net carrying amount	$	278	$	15,412	$	15,690	$	112	$	14,353	$	14,465

On March 28, 2022, the Company acquired a bank branch. Included in the branch acquisition were ~~$42.9~~$43.0 million in loans and ~~$234.5~~$226.8 million of deposits. The purchase resulted in recognition of $7.7 million of goodwill and a $2.3 million core deposit intangible asset.

On March 31, 2021, the Company sold its membership interests in its Prairie Capital Management, LLC and UMB Merchant Banc, LLC subsidiaries, a component of its Personal Banking segment. The sale included disposition of $6.3 million of goodwill and $1.9 million of net unamortized customer relationship intangibles.

The following table has the aggregate amortization expense recognized in each period (in thousands):

The following table lists estimated amortization expense of intangible assets in future periods (in thousands):

For the nine months ending December 31, 2022	$	3,408
For the six months ending December 31, 2022			$	2,183
For the year ending December 31, 2023		3,899		3,899
For the year ending December 31, 2024		3,169		3,169
For the year ending December 31, 2025		2,962		2,962
For the year ending December 31, 2026		2,103		2,103

The Company enters into sales of securities with simultaneous agreements to repurchase (repurchase agreements). The Company utilizes repurchase agreements to facilitate the needs of customers and to facilitate secured short-term funding needs. Repurchase agreements are stated at the amount of cash received in connection with the transaction. The Company monitors collateral levels on a continuous basis and may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with the Company’s safekeeping agents.

The table below presents the remaining contractual maturities of repurchase agreements outstanding at ~~March 31,~~June 30, 2022 and December 31, 2021, in addition to the various types of marketable securities that have been pledged as collateral for these borrowings (in thousands):

	As of March 31, 2022										As of June 30, 2022
	Remaining Contractual Maturities of the Agreements										Remaining Contractual Maturities of the Agreements
	Overnight		2-29 Days		30-90 Days		Over 90 Days		Total		Overnight		2-29 Days		30-90 Days		Over 90 Days		Total
Repurchase agreements, secured by:
U.S. Treasury	$	74,523	$	—	$	—	$	—	$	74,523	$	41,430	$	—	$	—	$	—	$	41,430
U.S. Agencies		2,210,192		171,106		298,422		500		2,680,220		2,063,998		73,924		428,445		500		2,566,867
Total repurchase agreements	$	2,284,715	$	171,106	$	298,422	$	500	$	2,754,743	$	2,105,428	$	73,924	$	428,445	$	500	$	2,608,297

The Company has strategically aligned its operations into the following 3 reportable segments: Commercial Banking, Institutional Banking, and Personal Banking (collectively, the Business Segments, and each, a Business Segment). The Company’s senior executive officers regularly evaluate the Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. For comparability purposes, amounts in all periods are based on methodologies in effect at ~~March 31,~~June 30, 2022. Previously reported results have been reclassified in this Form 10-Q to conform to the Company’s current organizational structure.

The following summaries provide information about the activities of each Business Segment:

Commercial Banking serves the commercial banking and treasury management needs of the Company’s small to middle-market businesses through a variety of products and services. Such services include commercial loans, commercial real estate financing, commercial credit cards, letters of credit, loan syndication services, and consultative services. In addition, the Company’s specialty lending group offers a variety of business solutions including asset-based lending, ~~accounts receivable financing,~~ mezzanine debt and minority equity investments. Treasury management services include depository services, account reconciliation and cash management tools such as, accounts payable and receivable solutions, electronic funds transfer and automated payments, controlled disbursements, lockbox services and remote deposit capture services.

Institutional Banking is a combination of banking services, fund services, asset management services and healthcare services provided to institutional clients. This segment also provides fixed income sales, trading and underwriting, corporate trust and escrow services, as well as institutional custody. Institutional Banking includes UMB Fund Services, which provides fund administration and accounting, investor services and transfer agency, marketing and distribution, custody, and alternative investment services. Healthcare services provides healthcare payment solutions including custodial services for health savings accounts (HSAs) and private label, multipurpose debit cards to insurance carriers, third-party administrators, software companies, employers, and financial institutions.

Personal Banking combines consumer banking and wealth management services offered to clients and delivered through personal relationships and the Company’s bank branches, ATM network and internet banking. Products offered include deposit accounts, retail credit cards, installment loans, home equity lines of credit, residential mortgages, and small business loans. The range of client services extends from a basic checking account to estate planning and trust services and includes private banking, brokerage services, and insurance services in addition to a full spectrum of investment advisory, trust, and custody services.

Business Segment financial results for the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021 were as follows (in thousands):

	Three Months Ended March 31, 2022										Three Months Ended June 30, 2022
	Commercial Banking			Institutional Banking		Personal Banking		Total			Commercial Banking		Institutional Banking		Personal Banking		Total
Net interest income	$	145,002		$	26,253	$	39,100	$	210,355		$	149,094	$	34,981	$	40,716	$	224,791
Provision for credit losses		(7,040	)		151		389		(6,500	)		12,067		89		1,244		13,400
Noninterest income		26,707			73,262		23,709		123,678			56,894		81,082		38,359		176,335
Noninterest expense		79,596			75,592		59,590		214,778			79,521		76,511		58,095		214,127
Income before taxes		99,153			23,772		2,830		125,755			114,400		39,463		19,736		173,599
Income tax expense		15,606			3,741		445		19,792			23,752		8,193		4,098		36,043
Net income	$	83,547		$	20,031	$	2,385	$	105,963		$	90,648	$	31,270	$	15,638	$	137,556
Average assets	$	16,827,000		$	14,677,000	$	7,650,000	$	39,154,000		$	16,829,000	$	13,577,000	$	7,157,000	$	37,563,000

	Three Months Ended March 31, 2021										Three Months Ended June 30, 2021
	Commercial Banking			Institutional Banking		Personal Banking		Total			Commercial Banking		Institutional Banking		Personal Banking		Total
Net interest income	$	136,410		$	22,138	$	35,567	$	194,115		$	142,878	$	21,258	$	36,935	$	201,071
Provision for credit losses		(8,178	)		220		458		(7,500	)		21,993		147		1,860		24,000
Noninterest income		8,176			68,421		32,300		108,897			37,106		68,745		25,738		131,589
Noninterest expense		69,725			71,282		59,939		200,946			73,472		72,575		55,291		201,338
Income before taxes		83,039			19,057		7,470		109,566			84,519		17,281		5,522		107,322
Income tax expense		12,826			2,943		1,154		16,923			15,679		3,206		1,025		19,910
Net income	$	70,213		$	16,114	$	6,316	$	92,643		$	68,840	$	14,075	$	4,497	$	87,412
Average assets	$	14,204,000		$	11,603,000	$	7,245,000	$	33,052,000		$	14,993,000	$	11,611,000	$	7,660,000	$	34,264,000

The following is a description of the principal activities from which the Company generates revenue that are within the scope of ASC Topic 606, Revenue from Contracts with Customers:

Trust and securities processing – Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, and mutual fund and alternative asset servicing. The performance obligations related to this revenue include items such

as performing full bond trustee service administration, investment advisory services, custody and record-keeping services, and fund administrative and accounting services. These fees are part of long-term contractual agreements and the performance obligations are satisfied upon completion of service and fees are generally a fixed flat monthly rate or based on a percentage of the account’s market value per the contract with the customer. These fees are primarily recorded within the Company’s Institutional and Personal Banking segments.

Trading and investment banking – Trading and investment banking income consists of income earned related to the Company’s trading securities portfolio, including futures hedging, dividends, bond underwriting, and other securities incomes. The vast majority of this revenue is recognized in accordance with ASC 320, Debt and Equity Securities, and is out of the scope of ASC 606. A portion of trading and investment banking represents fees earned for management fees, commissions, and underwriting of corporate bond issuances. The performance obligations related to these fees include reviewing the credit worthiness of the customer, ensuring appropriate regulatory approval and participating in due diligence. The fees are fixed per the bond prospectus and the performance obligations are satisfied upon registration approval of the bonds by the applicable regulatory agencies. Revenue is recognized at the point in time upon completion of service and when approval is granted by the regulators.

Service charges on deposits – Service charges on deposit accounts represent monthly analysis fees recognized for the services related to customer deposit accounts, including account maintenance and depository transactions processing fees. Commercial Banking and Institutional Banking depository accounts charge fees in accordance with the customer’s pricing schedule while Personal Banking account holders are generally charged a flat service fee per month. Deposit service charges for the healthcare accounts included in the Institutional Banking segment are priced

according to either standard pricing schedules with individual account holders or according to service agreements between the Company and employer groups or ~~third party~~third-party administrators. The Company satisfies the performance obligation related to providing depository accounts monthly as transactions are processed and deposit service charge revenue is recorded monthly. These fees are recognized within all Business Segments.

Insurance fees and commissions – Insurance fees and commissions includes all insurance-related fees earned, including commissions for individual life, variable life, group life, health, group health, fixed annuity, and variable annuity insurance contracts. The performance obligations related to these revenues primarily represent the placement of insurance policies with the insurance company partners. The fees are based on the contracts with insurance company partners and the performance obligations are satisfied when the terms of the policy have been agreed to and the insurance policy becomes effective.

Brokerage fees – Brokerage fees represent income earned related to providing brokerage transaction services, including commissions on equity and commodity trades, and fees for investment management, advisory and administration. The performance obligations related to transaction services are executing the specified trade and are priced according to the customer’s fee schedule. Such income is recognized at a point in time as the trade occurs and the performance obligation is fulfilled. The performance obligations related to investment management, advisory and administration include allocating customer assets across a wide range of mutual funds and other investments, on-going account monitoring and re-balancing of the portfolio. These performance obligations are satisfied over time and the related revenue is calculated monthly based on the assets under management of each customer. All material performance obligations are satisfied as of the end of each accounting period.

Bankcard fees – Bankcard fees primarily represent income earned from interchange revenue from MasterCard and Visa for the Company’s processing of debit, credit, HSA, and flexible spending account transactions. Additionally, the Company earns income and incentives related to various referrals of customers to card programs. The performance obligation for interchange revenue is the processing of each transaction through the Company’s access to the banking system. This performance obligation is completed for each individual transaction and income is recognized per transaction in accordance with interchange rates established by MasterCard and Visa. The performance obligations for various referral and incentive programs include either referring customers to certain card products or issuing exclusively branded cards for certain customer segments. The pricing of these incentive and referral programs are in accordance with the agreement with the individual card partner. These performance obligations are completed as the referrals are made or over a period of time when the Company is exclusively issuing branded cards. For the three months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021, the Company had ~~$8.1~~$9.6 million and ~~$7.8~~$9.0 million of expense, respectively, recorded within the Bankcard fees line on the Company’s Consolidated Income Statements related to rebates and rewards programs that are outside of the scope of ASC 606. For the six months ended June 30, 2022 and June 30, 2021, the Company had $17.7 million and $16.8 million of expense, respectively, related to these rebates and rewards programs. All material performance obligations are satisfied as of the end of each accounting period.

Investment securities ~~losses,~~gains, net – In the regular course of business, the Company recognizes gains on the sale of available-for-sale securities. Additionally, the Company recognizes gains and losses on equity securities with readily determinable fair values and equity securities without readily determinable fair values. These gains and losses are recognized in accordance with ASC 321, Equity Securities, and are outside of the scope of ASC 606.

Other income – The Company recognizes other miscellaneous income through a variety of other revenue streams, the most material of which include letter of credit fees, certain loan origination fees, gains on the sale of assets, derivative income, and bank-owned and company-owned life insurance income. These revenue streams are outside of the scope of ASC 606 and are recognized in accordance with the applicable U.S. GAAP. The remainder of Other income is primarily earned through transactions with personal banking customers, including wire transfer service charges, stop payment charges, and fees for items like money orders and cashier’s checks. The performance obligations of these types of fees are satisfied as transactions are completed and revenue is recognized upon transaction execution according to established fee schedules with the customers.

The Company had no material contract assets, contract liabilities, or remaining performance obligations as of ~~March 31,~~June 30, 2022. Total receivables from revenue recognized under the scope of ASC 606 were ~~$81.5~~$77.1 million and $73.6 million as of ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. These receivables are included as part of the Other assets line on the Company’s Consolidated Balance Sheets.

The following table depicts the disaggregation of noninterest income according to revenue stream and Business Segment for the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021. As stated in Note 8, “Business Segment Reporting,” for comparability purposes, amounts in all periods are based on methodologies in effect at ~~March 31,~~June 30, 2022 and previously reported results have been reclassified in this Form 10-Q to conform to the Company’s current organizational structure.

	Three Months Ended March 31, 2022												Three Months Ended June 30, 2022
NONINTEREST INCOME	Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total			Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total
Trust and securities processing	$	—	$	45,485	$	14,043	$	—		$	59,528		$	—	$	45,355	$	13,531	$	—		$	58,886
Trading and investment banking		—		155		—		5,285			5,440			—		60		—		7,063			7,123
Service charges on deposit accounts		8,945		13,890		1,737		70			24,642			8,696		10,250		1,839		50			20,835
Insurance fees and commissions		—		—		259		—			259			—		—		245		—			245
Brokerage fees		33		1,484		1,939		—			3,456			75		10,350		1,966		—			12,391
Bankcard fees		13,974		5,331		5,220		(7,890	)		16,635			15,757		5,553		5,913		(9,383	)		17,840
Investment securities losses, net		—		—		—		(522	)		(522	)
Investment securities gains, net														—		—		—		60,720			60,720
Other		164		424		686		12,966			14,240			232		479		694		(3,110	)		(1,705	)
Total Noninterest income	$	23,116	$	66,769	$	23,884	$	9,909		$	123,678		$	24,760	$	72,047	$	24,188	$	55,340		$	176,335

	Three Months Ended March 31, 2021												Six Months Ended June 30, 2022
NONINTEREST INCOME	Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total			Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total
Trust and securities processing	$	—	$	37,485	$	17,349	$	—		$	54,834		$	—	$	90,840	$	27,574	$	—		$	118,414
Trading and investment banking		—		301		—		9,055			9,356			—		216		—		12,347			12,563
Service charges on deposit accounts		7,905		12,577		1,424		70			21,976			17,641		24,140		3,576		120			45,477
Insurance fees and commissions		—		—		420		—			420			—		—		504		—			504
Brokerage fees		64		1,319		1,951		—			3,334			108		11,834		3,905		—			15,847
Bankcard fees		12,535		4,813		4,941		(7,616	)		14,673			29,731		10,884		11,132		(17,272	)		34,475
Investment securities losses, net		—		—		—		(8,336	)		(8,336	)
Investment securities gains, net														—		—		—		60,198			60,198
Other		231		404		669		11,336			12,640			396		903		1,379		9,857			12,535
Total Noninterest income	$	20,735	$	56,899	$	26,754	$	4,509		$	108,897		$	47,876	$	138,817	$	48,070	$	65,250		$	300,013

In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, commercial letters of credit, standby letters of credit, forward foreign exchange contracts and spot foreign exchange contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contractual or notional amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. Many of the commitments expire without being drawn upon; therefore, the total amount of these commitments does not necessarily represent the future cash requirements of the Company.

The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instruments for commitments to extend credit, commercial letters of credit, and standby letters of credit is represented by the contract or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

The following table summarizes the Company’s off-balance sheet financial instruments (in thousands):

	Contract or Notional Amount				Contract or Notional Amount
	March 31,		December 31,		June 30,		December 31,
	2022		2021		2022		2021
Commitments to extend credit for loans (excluding credit card loans)	$	10,214,525	$	10,122,617	$	11,229,926	$	10,122,617
Commitments to extend credit under credit card loans		3,809,495		3,743,165		3,846,870		3,743,165
Commercial letters of credit		4,501		2,754		2,694		2,754
Standby letters of credit		414,036		365,030		423,628		365,030
Forward contracts		8,127		9,729		5,555		9,729
Spot foreign exchange contracts		12,148		2,946		3,663		2,946

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate is based on expected utilization rates by portfolio segment. Utilization rates are influenced by historical trends and current conditions. The expected utilization rates are applied to the total commitment to determine the expected amount to be funded.

The allowance for off-balance sheet credit exposure is calculated by applying portfolio segment expected credit loss rates to the expected amount to be funded.

The following categories of off-balance sheet credit exposures have been identified:

Revolving Lines of Credit: includes commercial, construction, agriculture, personal, and home-equity. Risks inherent to revolving lines of credit often are related to the susceptibility of an individual or business experiencing unpredictable cash flow or financial troubles, thus leading to payment default. During these financial troubles, the borrower could have less than desirable assets collateralizing the revolving line of credit. The financial strain the borrower is experiencing could lead to drawing against the line without the ability to pay the line down.

Non-Revolving Lines of Credit: includes commercial and personal. Lines that do not carry a revolving feature are generally associated with a specific expenditure or project, such as to purchase equipment or the construction of real estate. The predominate risk associated with non-revolving lines is the diversion of funds for other expenditures. If funds get diverted, the contributory value to collateral suffers.

Letters of Credit: includes standby letters of credit. Generally, a standby letter of credit is established to provide assurance to the beneficiary that the applicant will perform certain obligations arising out of a separate transaction between the beneficiary and applicant. These obligations might be the performance of a service or delivery of a product. If the obligations are not met, it gives the beneficiary, the right to draw on the letter of credit.

The ACL for off-balance sheet credit exposures was $3.1 million and $2.6 million ~~as of March 31,~~at June 30, 2022 and December 31, 2021, respectively, and was recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets. ~~Provision~~There was 0 provision for off-balance sheet credit exposures recorded for the three months ended June 30, 2022. For the six months ended June 30, 2022, provision of $500 thousand was recorded for ~~the three months ended March 31, 2022. NaN~~off-balance sheet credit exposures. A reduction of $2.0 million as provision for off-balance sheet credit exposures was recorded for the three and six months ended ~~March 31,~~June 30, 2021. Provision for off-balance sheet credit exposure is recorded in the Provision for credit losses line of the Company’s Consolidated Statements of Income.

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity,

and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. Specifically, the Company 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 Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk of the Company’s assets or liabilities. The Company has entered into an offsetting position for each of these derivative instruments with a matching instrument from another financial institution in order to minimize its net risk exposure resulting from such transactions.

The table below presents the fair value of the Company’s derivative financial instruments as of ~~March 31,~~June 30, 2022 and December 31, 2021. The Company’s derivative assets and derivative liabilities are located within Other assets and Other liabilities, respectively, on the Company’s Consolidated Balance Sheets.

Derivative fair values are determined using valuation techniques including discounted cash flow analysis on the expected cash flows from each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value

measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

This table provides a summary of the fair value of the Company’s derivative assets and liabilities as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Derivative Assets				Derivative Liabilities				Derivative Assets				Derivative Liabilities
	March 31,		December 31,		March 31,		December 31,		June 30,		December 31,		June 30,		December 31,
Fair Value	2022		2021		2022		2021		2022		2021		2022		2021
Interest Rate Products:
Derivatives not designated as hedging instruments	$	19,113	$	57,134	$	43,016	$	13,944	$	22,760	$	57,134	$	71,268	$	13,944
Derivatives designated as hedging instruments		860		546		—		—		866		546		—		—
Total	$	19,973	$	57,680	$	43,016	$	13,944	$	23,626	$	57,680	$	71,268	$	13,944

The Company is exposed to changes in the fair value of certain of its fixed-rate assets and liabilities due to changes in the benchmark interest rate, London Interbank Offered Rate (LIBOR). Interest rate swaps designated as fair value hedges involve making fixed rate payments to a counterparty in exchange for the Company receiving variable rate payments over the life of the agreements without the exchange of the underlying notional amount. As of ~~both March 31,~~June 30, 2022, ~~and December 31, 2021,~~ the Company had 108 interest rate swaps that were designated as fair value hedges of interest rate risk associated with the Company’s municipal bond securities. These swaps had an aggregate notional amount of ~~$1.0 billion at both March 31, 2022 and~~$757.9 million as of June 30, 2022. As of December 31, ~~2021.~~2021, the Company had 10 interest rate swaps that were designated as fair value hedges of interest rate risk associated with the Company’s municipal bond securities with an aggregate notional amount of $1.0 billion. During the second quarter of 2022, the Company terminated two fair value hedges. In connection with these terminated hedges, $15.9 million of hedging adjustments will be amortized through the contractual maturity date of each respective hedged item.

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 are recognized in Interest income in the Consolidated Statements of Income.

The Company’s objective in using interest rate derivatives is to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of ~~March 31,~~June 30, 2022 and December 31, 2021, the Company had 2 interest rate swaps that were designated as cash flow hedges of interest rate risk associated with the Company’s variable-rate subordinated debentures issued by Marquette Capital Trusts III and IV. These swaps had an aggregate notional amount of $51.5 million at both ~~March 31,~~June 30, 2022 and December 31, 2021. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an upfront premium. On August 28, 2020, the Company terminated an interest rate floor with a notional amount of $750.0 million. At the date of termination, the interest rate floor had a net asset fair value of $34.1 million. The gross unrealized gain on the terminated interest rate floor remaining in AOCI was ~~$11.2~~$9.9 million, or ~~$8.4~~$7.5 million net of tax, and $12.3 million, or $9.4 million net of tax, as of ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. The unrealized gain will be reclassified into Interest income as the underlying forecasted transactions impact earnings through the original maturity of the hedged forecasted transactions. The total remaining term over which the unrealized gain will be reclassified into earnings is ~~2.4~~2.2 years.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and is subsequently reclassified into interest expense and interest income in the period during which the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to interest rate swap derivatives will be reclassified to Interest expense as interest payments are received or paid on the Company’s hedged items. Amounts reported in AOCI related to interest rate floor derivatives will be reclassified to Interest income as interest payments are received or paid on the Company’s ~~hedged~~ items. The Company expects to reclassify ~~$442~~$212 thousand from AOCI as a reduction to Interest expense and ~~$5.1~~$5.0 million from AOCI to Interest income during the

next 12 months. As of ~~March 31,~~June 30, 2022, the Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of ~~14.5 years~~.14.2 years.

The remainder of the Company’s derivatives are not designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of both the customer swaps and the offsetting swaps are recognized in Other noninterest expense in the Consolidated Statements of Income. As of ~~March 31,~~June 30, 2022, the Company had ~~204~~208 interest rate swaps with an aggregate notional amount of ~~$3.3~~$3.4 billion related to this program. As of December 31, 2021, the Company had 188 interest rate swaps with an aggregate notional amount of $2.9 billion.

Effect of Derivative Instruments on the Consolidated Statements of Income and Accumulated Other Comprehensive Income

This table provides a summary of the amount of gain or loss recognized in Interest income and Other noninterest expense in the Consolidated Statements of Income related to the Company’s derivative assets and liabilities for the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021 (in thousands):

	Amount of Gain (Loss) Recognized						Amount of Gain (Loss) Recognized
	For the Three Months Ended						For the Three Months Ended						For the Six Months Ended
	March 31,			March 31,			June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021			2022			2021
Interest Rate Products
Derivatives not designated as hedging instruments	$	183		$	489		$	191		$	(245	)	$	374		$	244
Total	$	183		$	489		$	191		$	(245	)	$	374		$	244
Interest Rate Products
Derivatives designated as hedging instruments:
Fair value adjustments on derivatives	$	36,676		$	9,328		$	16,035		$	(8,953	)	$	52,711		$	375
Fair value adjustments on hedged items		(36,058	)		(9,251	)		(16,106	)		8,896			(52,164	)		(355	)
Total	$	618		$	77		$	(71	)	$	(57	)	$	547		$	20

These tables provide a summary of the effect of hedges on AOCI in the Consolidated Statements of Comprehensive Income related to the Company’s derivative assets and liabilities for the three and six months ended ~~March 31,~~June 30, 2022 and ~~March 31,~~June 30, 2021 (in thousands):

	For the Three Months Ended March 31, 2022															For the Three Months Ended June 30, 2022
Derivatives in Cash Flow Hedging Relationships	Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component			Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	—	$	—	$	—	$	1,163		$	1,718		$	(555	)	$	—	$	—	$	—	$	1,250		$	1,811		$	(561	)
Interest rate swaps		4,680		4,680		—		(312	)		(312	)		—			4,437		4,437		—		(224	)		(224	)		—
Total	$	4,680	$	4,680	$	—	$	851		$	1,406		$	(555	)	$	4,437	$	4,437	$	—	$	1,026		$	1,587		$	(561	)

	For the Three Months Ended March 31, 2021															For the Six Months Ended June 30, 2022
Derivatives in Cash Flow Hedging Relationships	Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component			Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	—	$	—	$	—	$	1,166		$	1,721		$	(555	)	$	—	$	—	$	—	$	2,413		$	3,529		$	(1,116	)
Interest rate swaps		6,503		6,503		—		(324	)		(324	)		—			9,117		9,117		—		(536	)		(536	)		—
Total	$	6,503	$	6,503	$	—	$	842		$	1,397		$	(555	)	$	9,117	$	9,117	$	—	$	1,877		$	2,993		$	(1,116	)

The Company has agreements with certain of its derivative counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

~~As of March 31, 2022, the termination value of derivatives in a net liability position, which includes accrued interest, related to these agreements was $2.9 million.~~ The Company has minimum collateral posting thresholds with certain of its derivative counterparties. At ~~March 31,~~June 30, 2022, the Company had 0t posted ~~$11.3 million of collateral.~~any collateral as there were 0 derivatives in a net liability position. If the Company had breached any of these provisions at ~~March 31,~~June 30, 2022, it could have been required to settle its obligations under the agreements at the termination value.

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of ~~March 31,~~June 30, 2022, and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets and liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Assets and liabilities measured at fair value on a recurring basis as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Fair Value Measurement at March 31, 2022								Fair Value Measurement at June 30, 2022
Description	March 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		June 30, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
U.S. Treasury	$	602	$	602	$	—	$	—	$	593	$	593	$	—	$	—
State and political subdivisions		15,474		—		15,474		—		5,897		—		5,897		—
Corporates		800		800		—		—		2,743		2,743		—		—
Trading – other		183		183		—		—		413		413		—		—
Trading securities		17,059		1,585		15,474		—		9,646		3,749		5,897		—
U.S. Treasury		382,135		382,135		—		—		750,752		750,752		—		—
U.S. Agencies		152,778		—		152,778		—		175,247		—		175,247		—
Mortgage-backed		5,408,222		—		5,408,222		—		4,486,585		—		4,486,585		—
State and political subdivisions		2,046,511		—		2,046,511		—		1,662,375		—		1,662,375		—
Corporates		366,085		366,085		—		—		383,785		383,785		—		—
Collateralized loan obligations		194,362		—		194,362		—		280,472		—		280,472		—
Available-for-sale securities		8,550,093		748,220		7,801,873		—		7,739,216		1,134,537		6,604,679		—
Equity securities with readily determinable fair values		53,056		53,056		—		—		40,639		40,639		—		—
Company-owned life insurance		65,094		—		65,094		—		54,413		—		54,413		—
Bank-owned life insurance		501,308		—		501,308		—		504,250		—		504,250		—
Derivatives		19,973		—		19,973		—		23,626		—		23,626		—
Total	$	9,206,583	$	802,861	$	8,403,722	$	—	$	8,371,790	$	1,178,925	$	7,192,865	$	—
Liabilities
Derivatives	$	43,016	$	—	$	43,016	$	—	$	71,268	$	—	$	71,268	$	—
Securities sold not yet purchased		1,621		—		1,621		—		1,282		—		1,282		—
Total	$	44,637	$	—	$	44,637	$	—	$	72,550	$	—	$	72,550	$	—

	Fair Value Measurement at December 31, 2021								Fair Value Measurement at December 31, 2021
Description	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
U.S. Treasury	$	1,625	$	1,625	$	—	$	—	$	1,625	$	1,625	$	—	$	—
U.S. Agencies		2,159		—		2,159		—		2,159		—		2,159		—
Mortgage-backed		2,060		—		2,060		—		2,060		—		2,060		—
State and political subdivisions		21,671		—		21,671		—		21,671		—		21,671		—
Corporates		4,000		4,000		—		—	��	4,000		4,000		—		—
Trading – other		360		360		—		—		360		360		—		—
Trading securities		31,875		5,985		25,890		—		31,875		5,985		25,890		—
U.S. Treasury		69,174		69,174		—		—		69,174		69,174		—		—
U.S. Agencies		124,932		—		124,932		—		124,932		—		124,932		—
Mortgage-backed		7,965,055		—		7,965,055		—		7,965,055		—		7,965,055		—
State and political subdivisions		3,422,688		—		3,422,688		—		3,422,688		—		3,422,688		—
Corporates		317,846		317,846		—		—		317,846		317,846		—		—
Collateralized loan obligations		76,819		—		76,819		—		76,819		—		76,819		—
Available for sale securities		11,976,514		387,020		11,589,494		—
Available-for-sale securities										11,976,514		387,020		11,589,494		—
Equity securities with readily determinable fair values		64,149		64,149		—		—		64,149		64,149		—		—
Company-owned life insurance		65,245		—		65,245		—		65,245		—		65,245		—
Bank-owned life insurance		498,373		—		498,373		—		498,373		—		498,373		—
Derivatives		57,680		—		57,680		—		57,680		—		57,680		—
Total	$	12,693,836	$	457,154	$	12,236,682	$	—	$	12,693,836	$	457,154	$	12,236,682	$	—
Liabilities
Derivatives	$	13,944	$	—	$	13,944	$	—	$	13,944	$	—	$	13,944	$	—
Securities sold not yet purchased		3,197		—		3,197		—		3,197		—		3,197		—
Total	$	17,141	$	—	$	17,141	$	—	$	17,141	$	—	$	17,141	$	—

The following methods and assumptions were used to estimate the fair value of each class of financial instruments measured on a recurring basis:

Trading Securities Fair values for trading securities (including financial futures), are based on quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices for similar securities.

Available-for-Sale Securities Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Prices are provided by third-party pricing services and are based on observable market inputs. On an annual basis, the Company compares a sample of these prices to other independent sources for the same securities. Additionally, throughout the year, if securities are sold, comparisons are made between the pricing services prices and the market prices at which the securities were sold. Variances are analyzed, and, if appropriate, additional research is conducted with the third-party pricing services. Based on this research, the pricing services may affirm or revise their quoted price. No significant adjustments have been made to the prices provided by the pricing services. The pricing services also provide documentation on an ongoing basis that includes reference data, inputs and methodology by asset class, which is reviewed to ensure that security placement within the fair value hierarchy is appropriate.

Equity securities with readily determinable fair values Fair values are based on quoted market prices.

Company-owned Life Insurance Fair value is equal to the cash surrender value of the life insurance policies.

Bank-owned Life Insurance Fair value is equal to the cash surrender value of the life insurance policies.

Derivatives Fair values are determined using valuation techniques including discounted cash flow analysis on the expected cash flows from each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Securities sold not yet purchased Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Prices are provided by third-party pricing services and are based on observable market inputs.

Assets measured at fair value on a non-recurring basis as of ~~March 31,~~June 30, 2022 and December 31, 2021 (in thousands):

	Fair Value Measurement at March 31, 2022 Using											Fair Value Measurement at June 30, 2022 Using
Description	March 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Losses Recognized During the Three Months Ended March 31			June 30, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) Recognized During the Six Months Ended June 30
Collateral dependent assets	$	10,916	$	—	$	—	$	10,916	$	(6,278	)	$	1,996	$	—	$	—	$	1,996	$	(2,618	)
Other real estate owned		—		—		—		—		—			12,313		—		—		12,313		—
Total	$	10,916	$	—	$	—	$	10,916	$	(6,278	)	$	14,309	$	—	$	—	$	14,309	$	(2,618	)

Valuation methods for instruments measured at fair value on a non-recurring basis

The following methods and assumptions were used to estimate the fair value of each class of financial instruments measured on a non-recurring basis:

Collateral Dependent Assets Collateral dependent assets are assets evaluated as part of the ACL on an individual basis. Those assets for which there is an associated allowance are considered financial assets measured at fair value on a non-recurring basis. Adjustments are recorded on certain assets to reflect write-downs that are based on the external appraised value of the underlying collateral. The external appraisals are generally based on recent sales of comparable properties which are then adjusted for the unique characteristics of the property being valued. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists within the Company’s property management group and the Company’s credit department. The valuations of the collateral dependent assets are

reviewed on a quarterly basis. Because many of these inputs are not observable, the measurements are classified as Level 3.

Other real estate owned Other real estate owned consists of loan collateral which has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including auto, recreational and marine vehicles. Other real estate owned is recorded as held for sale initially at the fair value of the collateral less estimated selling costs. The initial valuation of the foreclosed property is obtained through an appraisal process similar to the process described in the impaired loans paragraph above. Subsequent to foreclosure, valuations are reviewed quarterly and updated periodically, and the assets may be marked down further, reflecting a new cost basis. Fair value measurements may be based upon appraisals, third-party price opinions, or internally developed pricing methods and those measurements are classified as Level 3.

Fair value disclosures require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The estimated fair value of the Company’s financial instruments at ~~March 31,~~June 30, 2022 and December 31, 2021 are as follows (in thousands):

	Fair Value Measurement at March 31, 2022 Using										Fair Value Measurement at June 30, 2022 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value		Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
FINANCIAL ASSETS
Cash and short-term investments	$	8,033,522	$	6,715,213	$	1,318,309	$	—	$	8,033,522	$	3,240,996	$	2,205,537	$	1,035,459	$	—	$	3,240,996
Securities available for sale		8,550,093		748,220		7,801,873		—		8,550,093		7,739,216		1,134,537		6,604,679		—		7,739,216
Securities held to maturity (exclusive of allowance for credit losses)		4,602,232		—		4,393,455		—		4,393,455		5,709,541		—		5,245,451		—		5,245,451
Trading securities		17,059		1,585		15,474		—		17,059		9,646		3,749		5,897		—		9,646
Other securities		332,123		53,056		279,067		—		332,123		342,543		40,639		301,904		—		342,543
Loans (exclusive of allowance for credit losses)		17,732,083		—		17,820,959		—		17,820,959		18,972,908		—		18,971,934		—		18,971,934
Derivatives		19,973		—		19,973		—		19,973		23,626		—		23,626		—		23,626
FINANCIAL LIABILITIES
Demand and savings deposits		33,775,532		33,775,532		—		—		33,775,532		30,932,642		30,932,642		—		—		30,932,642
Time deposits		587,033		—		587,033		—		587,033		553,382		—		553,382		—		553,382
Other borrowings		2,840,535		85,791		2,754,744		—		2,840,535		2,661,283		52,987		2,608,296		—		2,661,283
Long-term debt		272,036		—		278,844		—		278,844		272,505		—		273,596		—		273,596
Derivatives		43,016		—		43,016		—		43,016		71,268		—		71,268		—		71,268
OFF-BALANCE SHEET ARRANGEMENTS
Commitments to extend credit for loans										2,167										4,116
Commercial letters of credit										47										113
Standby letters of credit										924										2,074

Cash and short-term investments The carrying amounts of cash and due from banks, federal funds sold and resell agreements are reasonable estimates of their fair values.

Securities held to maturity For U.S. Agency and mortgage-backed securities, as well as general obligation bonds in the State and political subdivision portfolio, fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Prices are provided by third-party pricing services and are based on observable market inputs. On an annual basis, the Company compares a sample of these prices to other independent sources for the same securities. Variances are analyzed, and, if appropriate, additional research is conducted with the third-party pricing services. Based on this research, the pricing services may affirm or revise their quoted price. No significant adjustments have been made to the prices provided by the pricing services. The pricing services also provide documentation on an ongoing basis that includes reference data, inputs and methodology by asset class, which is reviewed to ensure that security placement within the fair value hierarchy is appropriate. For private placement bonds in the State and political subdivision portfolio, fair values are estimated by discounting the future cash flows using current market rates.

Other securities Amount consists of FRB and FHLB stock held by the Company, equity securities with readily determinable fair values, and equity securities without readily determinable fair values, including equity-method investments and other miscellaneous investments. The carrying amount of the FRB and FHLB stock equals its fair value because the shares can only be redeemed by the FRB and FHLB at their carrying amount. Equity securities with readily determinable fair values are measured at fair value using quoted market prices. Equity securities without readily determinable fair values are carried at cost, which approximates fair value.

Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, consumer, and credit card. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans are estimated by discounting the future cash flows. The

discount rates used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments.

Demand and savings deposits The fair value of demand deposits and savings accounts is the amount payable on demand at ~~March 31,~~June 30, 2022 and December 31, 2021.

Time deposits The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using the rates that are currently offered for deposits of similar remaining maturities.

Other borrowings The carrying amounts of federal funds purchased, repurchase agreements and other short-term debt are reasonable estimates of their fair value because of the short-term nature of their maturities. Federal funds purchased are classified as Level 1 based on availability of quoted market prices and repurchase agreements and other short-term debt are classified as Level 2.

Long-term debt Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt.

Other off-balance sheet instruments The fair value of loan commitments and letters of credit are determined based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the present creditworthiness of the counterparties. Neither the fees earned during the year on these instruments nor their fair value at period-end are significant to the Company’s consolidated financial position.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations highlights the material changes in the results of operations and changes in financial condition of the Company for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022. It should be read in conjunction with the accompanying Consolidated Financial Statements, Notes to Consolidated Financial Statements and other financial information appearing elsewhere in this Form 10-Q and the Form 10-K. Results of operations for the periods included in this review are not necessarily indicative of results to be attained during any future period.

From time to time the Company has made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey the Company’s expectations, intentions, or forecasts about future events, circumstances, results, or aspirations, in each case as of the date such forward-looking statements are made.

This Form 10-Q, including any information incorporated by reference in this Form 10-Q, contains forward-looking statements. The Company also may make forward-looking statements in other documents that are filed or furnished with the Securities and Exchange Commission. In addition, the Company may make forward-looking statements orally or in writing to investors, analysts, members of the media, or others.

All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond the Company’s control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, or uncertainties could be complete, some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements include:

Any forward-looking statement made by the Company or on its behalf speaks only as of the date that it was made. The Company does not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that the Company may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K.

~~Over the past~~For over two years, the Company has experienced the impacts of the COVID-19 global pandemic (the COVID-19 pandemic, or the pandemic). Such impacts have included significant volatility in the global stock and

fixed income markets, ~~reductions in the target federal funds rate,~~ the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the American Rescue Plan Act of 2021, both including the Paycheck Protection Program (PPP) administered by the Small Business Administration, and a variety of rulings from the Company’s banking regulators.

The Company continues to actively monitor developments related to COVID-19 and its impact to its business, customers, employees, counterparties, vendors, and service providers. During the ~~first~~second quarter of 2022, the Company’s results of operations included continued maintenance of the ACL at a level appropriate given the state of key macroeconomic variables utilized in the econometric models at ~~March 31,~~June 30, 2022. Additionally, the Company continued to see impacts of the volatile equity and debt markets ~~and low interest rate environment~~ in its fee-based ~~businesses.~~businesses, as well as the impacts of the recent interest rate increases in net interest income.

The COVID-19 pandemic has necessitated certain actions related to the way the Company operates its business. The Company is carefully monitoring the activities of its vendors and other third-party service providers to mitigate the risks associated with any potential service disruptions. The length of time it may be required to operate under such circumstances and future degrees of disruption remain uncertain. While the Company has not experienced material adverse disruptions to its internal operations due to the pandemic, it continues to review evolving risks and developments.

The Company focuses on the following four core financial objectives. Management believes these objectives will guide its efforts to achieve its vision, to deliver the Unparalleled Customer Experience, all while seeking to improve net income and strengthen the balance sheet while undertaking prudent risk management.

The first financial objective is to continuously improve operating efficiencies. The Company has focused on identifying efficiencies that simplify our organizational and reporting structures, streamline back office functions, and take advantage of synergies and newer technologies among various platforms and distribution networks. The Company has identified and expects to continue identifying ongoing efficiencies through the normal course of business that, when combined with increased revenue, will contribute to improved operating leverage. During the ~~first~~second quarter of 2022, total revenue increased ~~$31.0~~$68.5 million, or ~~10.2%~~20.6%, as compared to the ~~first~~second quarter of 2021, while noninterest expense increased ~~$13.8~~$12.8 million, or ~~6.9%~~6.4%, for the same period. As part of the initiative to improve operating efficiencies, the Company continues to invest in technological advances that it believes will help management drive operating leverage in the future through improved data analysis and automation. The Company also continues to evaluate core systems and will invest in enhancements that it believes will yield operating efficiencies.

The second financial objective is to increase net interest income through profitable loan and deposit growth and the optimization of the balance sheet. During the ~~first~~second quarter of 2022, the Company had an increase in net interest income of ~~$16.2~~$23.7 million, or ~~8.4%~~11.8%, from the same period in 2021. The Company has shown increased net interest income through the effects of increased volume and mix of average earning assets, coupled with higher interest rates. This increase is partially offset by ~~a decrease in~~higher interest-bearing deposit rates compared to the first quarter of 2021. The increase in interest income was driven by an increase of $2.3 billion in average non-PPP loans. This increase was offset by reduced interest rates and decreased income from the PPP for the three months ended March 31, 2022, as compared to the ~~same period~~second quarter of 2021 and lower PPP income. There was a decrease of $10.7 million in ~~2021. Loan~~ interest income ~~related to~~for loans recorded under the PPP ~~decreased $11.5 million in the first quarter of 2022~~ as compared to the ~~prior year, primarily due to a decline in average PPP balances~~second quarter of ~~$1.2 billion.~~2021. Average loan balances increased ~~$1.1~~$1.5 billion, or ~~6.9%~~8.9%, for the ~~first~~second quarter of 2022, compared to the same period in 2021. Average PPP loans decreased $1.1 billion compared to the second quarter of 2021. Average securities balances increased $2.4 billion compared to the same period in 2022, while average liquidity decreased $720.5 million. The funding for these assets was driven primarily by a ~~9.8%~~32.8% increase in noninterest-bearing deposits and a 1.1% increase in average interest-bearing ~~liabilities and a 43.8% increase in noninterest-bearing deposits.~~liabilities. Net interest margin, on a tax-equivalent basis, ~~decreased 24~~increased four basis points compared to the same period in 2021, in large part due to an increase in the benefit of free funds during the second quarter of 2022 with the increase in short-term interest rates. This increase was partially offset by excess liquidity buildup and repricing of earning assets in the low interest rate ~~environment. These declines were partially offset by a three-basis-point decrease in cost of interest-bearing deposits.~~environment during 2021. Net interest spread contracted by 24eight basis points during the same period. The Company expects to see continued volatility in the economic markets and governmental responses to inflation, geopolitical tensions, supply chain constraints, and the COVID-19 pandemic. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year.

The third financial objective is to grow the Company’s revenue from noninterest sources. The Company seeks to grow noninterest revenues throughout all economic and interest rate cycles, while positioning itself to

benefit in periods of economic growth. Noninterest income increased ~~$14.8~~$44.7 million, or ~~13.6%~~34.0%, to ~~$123.7~~$176.3 million for the three

months ended ~~March 31,~~June 30, 2022, compared to the same period in 2021. This change is primarily due to an increase of $45.3 million in investment securities gains, primarily due to the ~~value~~$66.2 million gain on the sale of the ~~company’s investment in Tattooed Chef,~~Company’s Visa Inc. ~~(TTCF), trust and securities processing, and service charges on deposits,~~Class B common shares, partially offset by ~~a decrease~~declines of $14.1 million and $5.5 million in ~~trading~~valuations of other securities with and ~~investment banking income.~~without readily determinable fair values, respectively. See greater detail below under Noninterest Income. The Company continues to emphasize its asset management, brokerage, bankcard services, healthcare services, and treasury management businesses. ~~At March 31,~~For the three months ended June 30, 2022, noninterest income represented ~~37.0%~~44.0% of total ~~revenues,~~revenue, compared to ~~35.9% at March 31,~~39.6% for the same period in 2021. The recent economic changes have impacted fee income, especially those with assets tied to market values and interest rates.

The fourth financial objective is effective capital management. The Company places a significant emphasis on maintaining a strong capital position, which management believes promotes investor confidence, provides access to funding sources under favorable terms, and enhances the Company’s ability to capitalize on business growth and acquisition opportunities. The Company continues to maximize shareholder value through a mix of reinvesting in organic growth, evaluating acquisition opportunities that complement the Company’s strategies, increasing dividends over time, and appropriately utilizing a share repurchase program. At ~~March 31,~~June 30, 2022, the Company had ~~$2.7~~$2.6 billion in total shareholders’ equity. This is a decrease of ~~$209.8~~$447.4 million, or ~~7.1%~~14.5%, compared to total shareholders’ equity at ~~March 31,~~June 30, 2021. This decrease is driven by lower AOCI due to the current rate environment. At ~~March 31,~~June 30, 2022, the Company had a total risk-based capital ratio of ~~13.55%~~13.00%. The Company repurchased ~~226,706~~104,293 shares of common stock at an average price of ~~$99.19~~$89.36 per share during the ~~first~~second quarter of 2022.

The following is a summary regarding the Company’s earnings for the ~~first~~second quarter of 2022. The changes identified in the summary are explained in greater detail below. The Company recorded net income of ~~$106.0~~$137.6 million for the three-month period ended ~~March 31,~~June 30, 2022, compared to net income of ~~$92.6~~$87.4 million for the same period a year earlier. Basic earnings per share for the ~~first~~second quarter of 2022 ~~was $2.19~~were $2.85 per share ($~~2.17~~2.83 per share fully-diluted) compared to ~~basic earnings~~$1.81 per share ~~of $1.93 per share~~ ($~~1.91~~1.79 per share fully-diluted) for the ~~first~~second quarter of 2021. Return on average assets and return on average common shareholders’ equity for the three-month period ended ~~March 31,~~June 30, 2022 were ~~1.10%~~1.47% and ~~14.65%~~20.83%, respectively, compared to ~~1.14%~~1.02% and ~~12.56%~~11.43%, respectively, for the three-month period ended ~~March 31,~~June 30, 2021.

The Company recorded net income of $243.5 million for the six-month period ended June 30, 2022, compared to net income of $180.1 million for the same period a year earlier. Basic earnings per share for the six-month period ended June 30, 2022 were $5.03 per share ($4.99 per share fully-diluted) compared to $3.74 per share ($3.70 per share fully-diluted) for the same period in 2021. Return on average assets and return on average common shareholders’ equity for the six-month period ended June 30, 2022 were 1.28% and 17.60%, respectively, compared to 1.08% and 11.98%, respectively, for the six-month period ended June 30, 2021.

Net interest income for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022 increased ~~$16.2~~$23.7 million, or ~~8.4%~~11.8%, and $40.0 million, or 10.1%, respectively, compared to the same ~~period~~periods in 2021. For the three-month period ended ~~March 31,~~June 30, 2022, average earning assets increased by ~~$6.0~~$3.1 billion, or ~~19.2%~~9.6%, and for the six-month period ended June 30, 2022, they increased by $4.6 billion, or 14.3%, compared to the same ~~period~~periods in 2021. Net interest margin, on a tax-equivalent basis, increased to 2.60% and decreased to ~~2.35%~~2.47% for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to ~~2.59%~~2.56% and 2.57% for the same ~~period~~periods in 2021.

The provision for credit losses ~~increased~~decreased by ~~$1.0~~$10.6 million for the three-month period ended ~~March 31,~~June 30, 2022 and decreased by $9.6 million for the six-month period ended June 30, 2022, as compared to the same ~~period~~periods in 2021. ~~Provision expense for both periods represents a release~~The decrease in the second quarter of ~~ACL for each period based on positive~~2022 is driven by the impact of changes in macro-economic ~~data~~metrics, risk ratings, and ~~portfolio credit metrics.~~net charge-offs. The Company’s nonperforming loans ~~increased $33.7~~decreased $40.1 million to ~~$110.4~~$18.1 million at ~~March 31,~~June 30, 2022, compared to ~~March 31,~~June 30, 2021. The ACL on loans as a percentage of total loans decreased to ~~1.01%~~0.87% as of ~~March 31,~~June 30, 2022, compared to ~~1.23%~~1.19% at ~~March 31,~~June 30, 2021. For a description of the Company’s methodology for computing the ACL, please see the summary discussion in the “Provision and Allowance for Credit Losses” section included below.

Noninterest income increased by ~~$14.8~~$44.7 million, or ~~13.6%~~34.0%, for the three-month period ended ~~March 31,~~June 30, 2022, and increased by $59.5 million, or 24.8%, for the six-month period ended June 30, 2022, compared to the same ~~period~~periods in 2021. These changes are discussed in greater detail below under Noninterest Income.

Noninterest expense increased by ~~$13.8~~$12.8 million, or ~~6.9%~~6.4%, for the three-month period ended ~~March 31,~~June 30, 2022, and increased by $26.6 million, or 6.6%, for the six-month period ended June 30, 2022, compared to the same ~~period~~periods in 2021. These changes are discussed in greater detail below under Noninterest Expense.

Net interest income is a significant source of the Company’s earnings and represents the amount by which interest income on earning assets exceeds the interest expense paid on liabilities. The volume of interest-earning assets and the related funding sources, the overall mix of these assets and liabilities, and the rates paid on each affect net interest income. Net interest income for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022 increased ~~$16.2~~$23.7 million, or ~~8.4%~~11.8%, and $40.0 million, or 10.1%, compared to the same ~~period~~periods in 2021.

Table 1 shows the impact of earning asset rate changes compared to changes in the cost of interest-bearing liabilities. As illustrated in this table, net interest spread for the three months ended ~~March 31,~~June 30, 2022 decreased 24eight basis points as compared to the same period in 2021. Net interest margin for the three months ended ~~March 31,~~June 30, 2022 increased four basis points compared to the same period in 2021. Net interest spread for the six-month period ended June 30, 2022 decreased 24by 16 basis points as compared to the same period in 2021. Net interest margin for the six-month period ended June 30, 2022 decreased by 10 basis points compared to the same period in 2021. The changes are primarily due to ~~unfavorable~~favorable volume and rate variances on ~~loans, partially~~earning assets and an increased benefit of interest-free funds. These are offset by ~~favorable volume variance on loans and securities and favorable~~unfavorable rate variances on interest-bearing deposits. Earning asset balance increases have been driven by higher average loan and security balances. These variances have led to an increase in the Company’s net interest income during 2022, as compared to results for the same ~~period~~periods in 2021. ~~The changes compared to last year have been impacted by loan growth and increased liquidity, offset by lower loan rates.~~ The Company expects to see continued volatility in the economic markets and governmental responses to changes in the economy. These changing conditions could have impacts on the balance sheet and income statement of the Company the remainder of the year. For the impact of the contribution from free funds, see the Analysis of Net Interest Margin within Table 2 below. Table 2 also illustrates how the changes in volume and interest rates have resulted in an increase in net interest income.

AVERAGE BALANCE SHEETS/YIELDS AND RATES (tax-equivalent basis) (unaudited, dollars in thousands)

The following table presents, for the periods indicated, the average earning assets and resulting yields, as well as the average interest-bearing liabilities and resulting yields, expressed in both dollars and rates. All average balances are daily average balances. The average yield on earning assets without the tax-equivalent basis adjustment would have been ~~2.40%~~2.79% for the three-month period ended ~~March 31,~~June 30, 2022, and ~~2.66%~~2.62% for the same period in 2021. The average yield on earning assets without the tax-equivalent basis adjustment would have been 2.59% for the six-month period ended June 30, 2022, and 2.64% for the same period in 2021.

Table 2 presents the dollar amount of change in net interest income and margin due to volume and rate. Table 2 also reflects the effect that interest-free funds have on net interest margin. The average balance of interest-free funds (total earning assets less interest-bearing liabilities) increased ~~$4.1~~$2.9 billion and $3.5 billion for the three-month ~~period~~and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021. The benefit from interest-free funds ~~remained flat~~increased 12 and six basis points in the three and six-month periods ended June 30, 2022, respectively, compared to the same ~~period~~periods in ~~2021.~~2021, due to increased short-term interest rates coupled with increased noninterest-bearing deposits.

ANALYSIS OF CHANGES IN NET INTEREST INCOME AND MARGIN (unaudited, dollars in thousands)

	Three Months Ended									Three Months Ended								Six Months Ended
	March 31, 2022 and 2021									June 30, 2022 and 2021								June 30, 2022 and 2021
	Volume			Rate			Total			Volume			Rate		Total			Volume			Rate			Total
Change in interest earned on:
Loans	$	9,954		$	(10,654	)	$	(700	)	$	13,899		$	1,483	$	15,382		$	23,609		$	(8,927	)	$	14,682
Securities:
Taxable		13,897			2,323			16,220			13,241			4,274		17,515			27,187			6,548			33,735
Tax-exempt		(1,722	)		613			(1,109	)		(3,406	)		2,201		(1,205	)		(5,137	)		2,823			(2,314	)
Federal funds sold and resell agreements		(702	)		331			(371	)		(22	)		967		945			(824	)		1,398			574
Interest-bearing due from banks		892			862			1,754			(213	)		3,587		3,374			555			4,573			5,128
Trading		24			2			26			(128	)		53		(75	)		(88	)		39			(49	)
Interest income		22,343			(6,523	)		15,820			23,371			12,565		35,936			45,302			6,454			51,756
Change in interest incurred on:
Interest-bearing deposits		556			(1,181	)		(625	)		117			8,748		8,865			728			7,512			8,240
Federal funds purchased and repurchase agreements		330			(68	)		262			(58	)		3,277		3,219			270			3,211			3,481
Other borrowed funds		25			(82	)		(57	)		23			109		132			49			26			75
Interest expense		911			(1,331	)		(420	)		82			12,134		12,216			1,047			10,749			11,796
Net interest income	$	21,432		$	(5,192	)	$	16,240		$	23,289		$	431	$	23,720		$	44,255		$	(4,295	)	$	39,960

	Three Months Ended March 31,									Three Months Ended June 30,									Six Months Ended June 30,
	2022			2021			Change			2022			2021			Change			2022			2021			Change
Average earning assets	$	37,469,355		$	31,430,742		$	6,038,613		$	35,700,866		$	32,576,829		$	3,124,037		$	36,576,584		$	32,001,658		$	4,574,926
Interest-bearing liabilities		21,800,210			19,861,293			1,938,917			20,310,283			20,095,791			214,492			21,051,130			19,979,190			1,071,940
Interest-free funds	$	15,669,145		$	11,569,449		$	4,099,696		$	15,390,583		$	12,481,038		$	2,909,545		$	15,525,454		$	12,022,468		$	3,502,986
Free funds ratio (interest free funds to average earning assets)		41.82	%		36.81	%		5.01	%		43.11	%		38.31	%		4.80	%		42.45	%		37.57	%		4.88	%
Tax-equivalent yield on earning assets		2.47			2.74			(0.27	)		2.86			2.70			0.16			2.66			2.72			(0.06	)
Cost of interest-bearing liabilities		0.21			0.24			(0.03	)		0.47			0.23			0.24			0.34			0.24			0.10
Net interest spread		2.26			2.50			(0.24	)		2.39			2.47			(0.08	)		2.32			2.48			(0.16	)
Benefit of interest-free funds		0.09			0.09			—			0.21			0.09			0.12			0.15			0.09			0.06
Net interest margin		2.35	%		2.59	%		(0.24	)%		2.60	%		2.56	%		0.04	%		2.47	%		2.57	%		(0.10	)%

The ACL represents management’s judgment of the total expected losses included in the Company’s loan portfolio as of the balance sheet date. The Company’s process for recording the ACL is based on the evaluation of the Company’s lifetime historical loss experience, management’s understanding of the credit quality inherent in the loan portfolio, and the impact of the current economic environment, coupled with reasonable and supportable economic forecasts.

A mathematical calculation of an estimate is made to assist in determining the adequacy and reasonableness of management’s recorded ACL. To develop the estimate, the Company follows the guidelines in ASC Topic 326,

Financial Instruments – Credit Losses. The estimate reserves for assets held at amortized cost and any related credit deterioration in the Company’s available-for-sale debt security portfolio. Assets held at amortized cost include the Company’s loan book and held-to-maturity security portfolio.

The process involves the consideration of quantitative and qualitative factors relevant to the specific segmentation of loans. These factors have been established over decades of financial institution experience and include economic observation and loan loss characteristics. This process is designed to produce a lifetime estimate of the losses, at a reporting date, that includes evaluation of historical loss experience, current economic conditions, reasonable and supportable forecasts, and the qualitative framework outlined by the Office of the Comptroller of the Currency in the published 2020 Interagency Policy Statement. This process allows management to take a holistic view of the recorded ACL reserve and ensure that all significant and pertinent information is considered.

The Company considers a variety of factors to ensure the safety and soundness of its estimate including a strong internal control framework, extensive methodology documentation, credit underwriting standards which encompass the Company’s desired risk profile, model validation, and ratio analysis. If the Company’s total ACL estimate, as determined in accordance with the approved ACL methodology, is either outside a reasonable range based on review of economic indicators or by comparison of historical ratio analysis, the ACL estimate is an outlier and management will investigate the underlying reason(s). Based on that investigation, issues or factors that previously had not been considered may be identified in the estimation process, which may warrant adjustments to estimated credit losses.

The ending result of this process is a recorded consolidated ACL that represents management’s best estimate of the total expected losses included in the loan portfolio, held-to-maturity securities, and credit deterioration in available-for-sale securities.

Based on the factors above, management of the Company recorded ~~a reduction of $6.5~~$13.4 million as provision for credit losses for the three-month period ended ~~March 31,~~June 30, 2022, as compared to ~~a reduction of $7.5~~$24.0 million for the same period in 2021. ~~This change is~~For the six-month period ended June 30, 2022, management of the Company recorded $6.9 million as provision for credit losses, as compared to $16.5 million for the same period in 2021. These changes are the result of applying the methodology for computing the ~~allowance for credit losses,~~ACL, coupled with the impacts of the current and forecasted economic environment. As illustrated in Table 3 below, the ACL on loans decreased to ~~1.01%~~0.87% of total loans as of ~~March 31,~~June 30, 2022, compared to ~~1.23%~~1.19% of total loans as of ~~March 31,~~June 30, 2021.

Table 3 presents a summary of the Company’s ACL for the ~~three-month~~six-month periods ended ~~March 31,~~June 30, 2022 and 2021, and for the year ended December 31, 2021. Net charge-offs were ~~$8.4~~$36.5 million for the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, compared to ~~$5.3~~$33.7 million for the same period in 2021. See “Credit Risk Management” under “Item 3. Quantitative and Qualitative Disclosures About Market Risk” in this report for information relating to nonaccrual loans, past due loans, restructured loans and other credit risk matters.

	Three Months Ended						Year Ended			Six Months Ended						Year Ended
	March 31,						December 31,			June 30,						December 31,
	2022			2021			2021			2022			2021			2021
Allowance – January 1	$	196,711		$	218,583		$	218,583		$	196,711		$	218,583		$	218,583
Provision for credit losses		(7,000	)		(7,500	)		23,000			6,400			18,500			23,000
Charge-offs:
Commercial and industrial		(8,202	)		(4,717	)		(13,981	)		(36,217	)		(4,719	)		(13,981	)
Specialty lending		—			—			(31,945	)		—			(31,945	)		(31,945	)
Commercial real estate		—			—			(1,198	)		—			—			(1,198	)
Consumer real estate		(32	)		(76	)		(96	)		(57	)		(86	)		(96	)
Consumer		(158	)		(109	)		(2,424	)		(319	)		(248	)		(2,424	)
Credit cards		(1,465	)		(1,692	)		(6,011	)		(2,933	)		(3,169	)		(6,011	)
Leases and other		—			(8	)		(8	)		—			(8	)		(8	)
Total charge-offs		(9,857	)		(6,602	)		(55,663	)		(39,526	)		(40,175	)		(55,663	)
Recoveries:
Commercial and industrial		661			126			6,694			1,390			3,761			6,694
Specialty lending		—			115			187			1			151			187
Commercial real estate		362			509			1,560			385			1,347			1,560
Consumer real estate		28			59			142			110			113			142
Consumer		29			23			223			60			87			223
Credit cards		399			442			1,967			1,074			1,014			1,967
Leases and other		—			18			18			—			18			18
Total recoveries		1,479			1,292			10,791			3,020			6,491			10,791
Net charge-offs		(8,378	)		(5,310	)		(44,872	)		(36,506	)		(33,684	)		(44,872	)
Allowance for credit losses – end of period	$	181,333		$	205,773		$	196,711		$	166,605		$	203,399		$	196,711
Allowance for credit losses on loans	$	179,288		$	202,814		$	194,771		$	164,346		$	200,563		$	194,771
Allowance for credit losses on held-to-maturity securities		2,045			2,959			1,940			2,259			2,836			1,940
Loans at end of period, net of unearned interest		17,731,700			16,497,385			17,170,871			18,972,158			16,910,790			17,170,871
Held-to-maturity securities at end of period		4,602,232			1,042,670			1,480,416			5,709,541			1,084,009			1,480,416
Total assets at amortized cost		22,333,932			17,540,055			18,651,287			24,681,699			17,994,799			18,651,287
Average loans, net of unearned interest		17,360,071			16,230,886			16,618,350			17,840,970			16,517,950			16,618,350
Allowance for credit losses on loans to loans at end of period		1.01	%		1.23	%		1.13	%		0.87	%		1.19	%		1.13	%
Allowance for credit losses – end of period to total assets at amortized cost		0.81	%		1.17	%		1.05	%		0.68	%		1.13	%		1.05	%
Allowance as a multiple of net charge-offs	5.34x			9.56x			4.38x			2.26x			2.99x			4.38x
Net charge-offs to average loans		0.20	%		0.13	%		0.27	%		0.41	%		0.41	%		0.27	%

A key objective of the Company is the growth of noninterest income to provide a diverse source of revenue not directly tied to interest rates. Fee-based services are typically non-credit related and are not generally affected by fluctuations in interest rates.

The Company offers multiple fee-based products and services, which management believes will more closely align with customer demands. The Company is currently emphasizing fee-based products and services including trust and securities processing, bankcard, securities trading and brokerage, and cash and treasury management. Management believes that it can offer these products and services both efficiently and profitably, as most have common platforms and support structures.

	Three Months Ended						Dollar			Percent			Three Months Ended					Dollar			Percent
	March 31,						Change			Change			June 30,					Change			Change
	2022			2021			22-21			22-21			2022			2021		22-21			22-21
Trust and securities processing	$	59,528		$	54,834		$	4,694			8.6	%	$	58,886		$	53,863	$	5,023			9.3	%
Trading and investment banking		5,440			9,356			(3,916	)		(41.9	)		7,123			8,670		(1,547	)		(17.8	)
Service charges on deposits		24,642			21,976			2,666			12.1			20,835			22,592		(1,757	)		(7.8	)
Insurance fees and commissions		259			420			(161	)		(38.3	)		245			245		—			—
Brokerage fees		3,456			3,334			122			3.7			12,391			2,592		9,799			378.0
Bankcard fees		16,635			14,673			1,962			13.4			17,840			16,063		1,777			11.1
Investment securities losses, net		(522	)		(8,336	)		7,814			(93.7	)
Investment securities gains, net														60,720			15,455		45,265			292.9
Other		14,240			12,640			1,600			12.7			(1,705	)		12,109		(13,814	)		(114.1	)
Total noninterest income	$	123,678		$	108,897		$	14,781			13.6	%	$	176,335		$	131,589	$	44,746			34.0	%

Noninterest income increased by ~~$14.8~~$44.7 million, or ~~13.6%~~34.0%, during the three-month period ended ~~March 31,~~June 30, 2022, and increased $59.5 million, or 24.8%, during the six-month period ended June 30, 2022, compared to the same ~~period~~periods in 2021. Table 4 above summarizes the components of noninterest income and the respective year-over-year comparison for each category.

Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, mutual fund assets, and alternative asset servicing. The increase in these fees for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, compared to the same ~~period~~periods in 2021, was primarily due to an increase in fund services and corporate trust revenues. For the three-month period ended ~~March 31,~~June 30, 2022, fund services revenue increased ~~$6.4~~$3.7 million, or ~~23.8%~~12.6%, and corporate trust revenue increased $1.7 million, or ~~17.2%~~16.8%, compared to the same period in 2021. For the six-month period ended June 30, 2022, fund services revenue increased $10.1 million, or 17.9%, and corporate trust revenue increased $3.5 million, or 17.0%, compared to the same period in 2021. These increases are partially offset by a decrease ~~in trust services revenue~~ of ~~$3.4~~$3.8 million, or ~~19.2%.~~11.8%, in wealth management income. The recent volatile markets have impacted the income in this category. Since trust and securities processing fees are primarily asset-based, which are highly correlated to the change in market value of the assets, the related income for the remainder of the year will be affected by changes in the securities markets. Management continues to emphasize sales of services to both new and existing clients as well as increasing and improving the distribution channels.

Trading and investment banking fees for the three-month period ended ~~March 31,~~June 30, 2022 decreased ~~$3.9~~$1.5 million, or ~~41.9%~~17.8%, and decreased $5.5 million, or 30.3%, for the six-month period ended June 30, 2022 compared to the same ~~period~~periods in 2021. ~~This decrease was~~These changes were primarily driven by ~~decreased~~the volatile market’s impact on trading volume. The income in this category is market driven and impacted by general increases or decreases in trading volume.

Service charges on deposit accounts for the three-month period ended March 31, 2022 increased by $2.7 million, or 12.1%, compared to the same period last year, driven by higher healthcare income related to customer termination fees.

~~Bankcard~~Brokerage fees for the three-month period ended ~~March 31,~~June 30, 2022 increased ~~$2.0~~$9.8 million, or ~~13.4%~~378.0%, compared to the same period in 2021. ~~This increase was driven by higher interchange income.~~

~~Investment securities losses, net for~~For the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, brokerage fees increased ~~by $7.8~~$9.9 million, or ~~93.7%~~167.4%, compared to the same period in 2021. ~~This~~The increases in both periods were driven by higher 12b-1 fees and money market income. The increases in short-term interest rates will impact the income in this category the remainder of the year.

Bankcard fees for the three and six-month periods ended June 30, 2022 increased $1.8 million, or 11.1%, and $3.7 million, or 12.2%, respectively, as compared to the same periods in 2021. The increase in both periods was driven by increased interchange income.

Investment securities gains, net for the ~~$13.9~~three and six-month periods ended June 30, 2022 increased $45.3 million, ~~increased valuation~~or 292.9%, and $53.1 million, or 745.6%, respectively, compared to the same periods in 2021. The increase for the three-month and six-month periods was primarily due to a $66.2 million gain realized on the ~~company’s investment in TTCF, during~~sale of the ~~first quarter of 2022,~~Company’s Visa Inc. Class B common shares. This gain for the three-month period is partially offset by ~~decreased~~declines of $14.1 million and $5.5 million in valuations of other securities with and without readily determinable fair values, respectively, and a decrease in gains on sales of available-for-sale securities of $1.3 million. This gain for the six-month period is partially offset by declines of $7.1 million and ~~equity earnings~~$1.9 million in valuations of other securities without and with readily determinable fair values, respectively, and a decrease of $4.0 million in gains on ~~alternative investments.~~sales of available-for-sale securities. The income in this category is highly correlated to the change in market value of the assets, and the related income for the remainder of the year will be affected by changes in the securities markets. The Company’s investment portfolio is continually evaluated for opportunities to improve its performance and risk profile relative to market conditions and the Company’s interest rate expectations. This can result in differences from quarter to quarter in the amount of realized gains or losses on this portfolio.

Other noninterest income for the three-month period ended ~~March 31,~~June 30, 2022, ~~increased $1.6~~decreased $13.8 million, or ~~12.7%~~114.1%, compared to the same period in 2021, driven by a decrease of $11.6 million in company-owned life insurance and a $2.6 million decrease in derivative income. For the six-month period, other noninterest income decreased $12.2 million, or 49.4%, compared to the same period in 2021, driven by a $12.8 million decrease in company-owned life insurance and a $2.6 million decrease in gains on the sale of mortgage loans. These decreases are offset by an increase of ~~$5.0~~$2.4 million in derivative income and an increase of $1.0 million in bank-owned life insurance. The changes in company-owned life insurance are offset by ~~decreased gains on sale of other assets of $2.1 million and a decrease of $1.3 million~~proportionate changes in ~~mortgage loan gains.~~deferred compensation expense.

	Three Months Ended				Dollar			Percent			Three Months Ended				Dollar			Percent
	March 31,				Change			Change			June 30,				Change			Change
	2022		2021		22-21			22-21			2022		2021		22-21			22-21
Salaries and employee benefits	$	130,634	$	127,681	$	2,953			2.3	%	$	121,390	$	120,415	$	975			0.8	%
Occupancy, net		12,232		11,935		297			2.5			11,976		12,296		(320	)		(2.6	)
Equipment		18,164		19,615		(1,451	)		(7.4	)		18,315		19,196		(881	)		(4.6	)
Supplies and services		3,262		3,492		(230	)		(6.6	)		3,492		3,469		23			0.7
Marketing and business development		4,932		2,345		2,587			110.3			5,308		4,797		511			10.7
Processing fees		18,443		15,417		3,026			19.6			19,338		16,501		2,837			17.2
Legal and consulting		6,911		5,755		1,156			20.1			11,265		8,147		3,118			38.3
Bankcard		6,567		4,956		1,611			32.5			5,880		4,529		1,351			29.8
Amortization of other intangible assets		1,071		1,380		(309	)		(22.4	)		1,225		1,157		68			5.9
Regulatory fees		3,482		2,546		936			36.8			3,464		2,769		695			25.1
Other		9,080		5,824		3,256			55.9			12,474		8,062		4,412			54.7
Total noninterest expense	$	214,778	$	200,946	$	13,832			6.9	%	$	214,127	$	201,338	$	12,789			6.4	%

Noninterest expense increased ~~by $13.8~~$12.8 million, or ~~6.9%~~6.4%, and increased $26.6 million, or 6.6%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021. Table 5 above summarizes the components of noninterest expense and the respective year-over-year comparison for each category.

Salaries and employee benefits increased by ~~$3.0~~$1.0 million, or ~~2.3%~~0.8%, and $3.9 million, or 1.6%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021. Bonus and commission expense increased ~~$1.5~~$7.8 million, or ~~5.5%~~30.2%, and increased $9.3 million, or 17.4%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021. Salaries and wages expense increased ~~$0.8~~$1.9 million, or ~~1.2%~~2.6%, and increased $2.8 million, or 1.9%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021. ~~Employee~~These increases are offset by decreases in employee benefits expense ~~increased $0.6~~of $8.8 million, or ~~2.2%~~44.6%, and $8.2 million, or 17.7%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in ~~2021.~~2021, driven by decreases in deferred compensation expense.

Equipment expense decreased ~~$1.5~~$0.9 million, or ~~7.4%~~4.6%, and $2.3 million, or 6.0%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021, primarily due to lower software and equipment maintenance expense.

Marketing and business development expense increased ~~$2.6~~$0.5 million, or ~~110.3%~~10.7%, and $3.1 million, or 43.4%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021, primarily due to ~~higher advertising expense and~~increased travel and entertainment ~~expense.~~expense as well as the timing of multiple marketing initiatives.

Processing fees increased ~~$3.0~~$2.8 million, or ~~19.6%~~17.2%, and $5.9 million, or 18.4%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021, primarily due to increased software subscription ~~cost.~~costs.

~~Bankcard~~Legal and consulting expense increased ~~$1.6~~$3.1 million, or ~~32.5%~~38.3%, and $4.3 million, or 30.7%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021, primarily due to timing of multiple projects.

Bankcard expense increased $1.4 million, or 29.8%, and $3.0 million, or 31.2%, for the three and six-month periods ended June 30,2022, respectively, compared to the same periods in 2021 primarily driven by higher administrative expense and fraud losses.

Other expense increased ~~$3.3~~$4.4 million, or ~~55.9%~~54.7%, and $7.7 million, or 55.2%, for the ~~three-month period~~three and six-month periods ended ~~March 31,~~June 30, 2022, respectively, compared to the same ~~period~~periods in 2021, primarily due to ~~increased~~higher charitable contributions and an increase in operational ~~losses and derivative-related expense.~~losses.

The Company’s effective tax rate was ~~15.7%~~18.7% for the ~~three~~six months ended ~~March 31,~~June 30, 2022, compared to ~~15.4%~~17.0% for the same period in 2021. The increase in the effective tax rate for 2022 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.

The Company has strategically aligned its operations into the following three reportable Business Segments: Commercial Banking, Institutional Banking, and Personal Banking. The Company’s senior executive officers regularly evaluate Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. For comparability purposes, amounts in all periods are based on methodologies in effect at ~~March 31,~~June 30, 2022. Previously reported results have been reclassified in this Form 10-Q to conform to the Company’s current organizational structure.

	Three Months Ended						Dollar		Percent			Three Months Ended				Dollar			Percent
	March 31,						Change		Change			June 30,				Change			Change
	2022			2021			22-21		22-21			2022		2021		22-21			22-21
Net interest income	$	145,002		$	136,410		$	8,592		6.3	%	$	149,094	$	142,878	$	6,216			4.4	%
Provision for credit losses		(7,040	)		(8,178	)		1,138		13.9			12,067		21,993		(9,926	)		(45.1	)
Noninterest income		26,707			8,176			18,531		226.7			56,894		37,106		19,788			53.3
Noninterest expense		79,596			69,725			9,871		14.2			79,521		73,472		6,049			8.2
Income before taxes		99,153			83,039			16,114		19.4			114,400		84,519		29,881			35.4
Income tax expense		15,606			12,826			2,780		21.7			23,752		15,679		8,073			51.5
Net income	$	83,547		$	70,213		$	13,334		19.0	%	$	90,648	$	68,840	$	21,808			31.7	%

For the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, Commercial Banking net income increased ~~$13.3~~$34.6 million to ~~$83.5~~$173.7 million, as compared to the same period in 2021. Net interest income increased ~~$8.6~~$14.8 million, or ~~6.3%~~5.3%, for the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, compared to the same period in 2021, primarily driven by strong loan growth, ~~and~~ earning asset mix ~~changes.~~changes, and increases in short-term interest rates. Provision for credit losses ~~increased by $1.1~~decreased $8.8 million for the ~~period. Provision expense for both periods represents a release of ACL~~period, based on positive macro-economic data and ~~portfolio~~ credit ~~metrics.~~metrics in 2022 as compared to 2021. Noninterest income increased ~~$18.5~~$38.3 million, or ~~226.7%~~84.6%, over the same period in 2021, primarily due to an ~~increase~~allocated portion of ~~$15.0~~the gain on the sale of Visa Inc. Class B common shares, partially offset by the decline in company-owned life insurance for the six months ended June 30, 2022 as compared to the prior year. Additionally, there were increases of $9.6 million in other investment ~~securities~~security gains, ~~and $5.0~~$4.7 million in ~~derivative~~other income, driven by the gain on the sale of the Company’s factoring loan portfolio, and $2.2 million in bankcard income, primarily due to increased interchange income. Noninterest expense increased ~~$9.9~~$15.9 million, or ~~14.2%~~11.1%, to ~~$79.6~~$159.1 million for the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, compared to the same period in 2021. This increase was driven by a ~~$3.2~~$5.7 million

increase in technology, service, and overhead expenses, an increase of $2.6 million in other noninterest expense driven by higher operational losses, derivative expense and loan expense in the first quarter of 2022, an increase of $1.1 million in marketing and business development expense due to increased travel and entertainment expense and advertising expense, and an increase of $1.3$2.5 million in salary and employee benefits expense, ~~driven by increased company performance during the first quarter~~an increase of ~~2022.~~$1.6 million in operational losses, an increase of $1.6 million in marketing and business development, an increase of $1.4 million in legal and consulting expense, an increase of $1.0 million in bankcard expense, and an increase of $0.8 million in regulatory fees.

	Three Months Ended				Dollar			Percent			Three Months Ended				Dollar			Percent
	March 31,				Change			Change			June 30,				Change			Change
	2022		2021		22-21			22-21			2022		2021		22-21			22-21
Net interest income	$	26,253	$	22,138	$	4,115			18.6	%	$	34,981	$	21,258	$	13,723			64.6	%
Provision for credit losses		151		220		(69	)		(31.4	)		89		147		(58	)		(39.5	)
Noninterest income		73,262		68,421		4,841			7.1			81,082		68,745		12,337			17.9
Noninterest expense		75,592		71,282		4,310			6.0			76,511		72,575		3,936			5.4
Income before taxes		23,772		19,057		4,715			24.7			39,463		17,281		22,182			128.4
Income tax expense		3,741		2,943		798			27.1			8,193		3,206		4,987			155.6
Net income	$	20,031	$	16,114	$	3,917			24.3	%	$	31,270	$	14,075	$	17,195			122.2	%

For the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, Institutional Banking net income increased ~~$3.9~~$21.3 million, or ~~24.3%~~70.5%, compared to the same period last year. Net interest income increased ~~$4.1~~$17.8 million, or ~~18.6%~~41.1%, compared to the same period last year, driven by an increase in funds transfer pricing due to anthe increase in ~~deposit balances.~~interest rates. Noninterest income increased ~~$4.8~~$17.2 million, or ~~7.1%~~12.5%, primarily due to an allocated portion of the gain on the sale of Visa Inc. Class B common shares, partially offset by the decline in company-owned life insurance for the six months ended June 30, 2022 as compared to the prior year. Additionally, there were increases of ~~$6.4~~$10.1 million in fund services income, ~~and $1.7~~$9.8 million in brokerage fees, $3.5 million in corporate trust income, ~~both recorded~~and an increase of $1.4 million in ~~trust~~bankcard fees. These increases were partially offset by decreases of $5.5 million and ~~securities processing revenue, and $1.3~~$0.9 million in bond trading income and service charges on ~~deposit accounts due to healthcare customer transfer~~deposits, respectively. Noninterest expense increased $8.3 million, or 5.7%, primarily driven by an increase of $7.4 million in salary and ~~conversion fees.~~employee benefits expense, $1.4 million in marketing and business development, and $1.1 million in bankcard expense. These increases were partially offset by a decrease of ~~$3.9~~$1.3 million in ~~bond trading income driven by lower trading volume. Noninterest expense increased $4.3 million, or 6.0%, primarily driven by an increase of $3.3 million in salary~~ technology, service, and ~~employee benefits expense, an increase of $0.7 million in bankcard expense and an increase of $0.7 million in marketing and business development expense.~~overhead expenses.

	Three Months Ended				Dollar			Percent			Three Months Ended				Dollar			Percent
	March 31,				Change			Change			June 30,				Change			Change
	2022		2021		22-21			22-21			2022		2021		22-21			22-21
Net interest income	$	39,100	$	35,567	$	3,533			9.9	%	$	40,716	$	36,935	$	3,781			10.2	%
Provision for credit losses		389		458		(69	)		(15.1	)		1,244		1,860		(616	)		(33.1	)
Noninterest income		23,709		32,300		(8,591	)		(26.6	)		38,359		25,738		12,621			49.0
Noninterest expense		59,590		59,939		(349	)		(0.6	)		58,095		55,291		2,804			5.1
Income before taxes		2,830		7,470		(4,640	)		(62.1	)		19,736		5,522		14,214			257.4
Income tax expense		445		1,154		(709	)		(61.4	)		4,098		1,025		3,073			299.8
Net income	$	2,385	$	6,316	$	(3,931	)		(62.2	)%	$	15,638	$	4,497	$	11,141			247.7	%

For the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, Personal Banking net income ~~decreased by $3.9~~increased $7.6 million, or 70.2%, to ~~$2.4~~$18.4 million, as compared to the same period in 2021. Net interest income increased ~~$3.5~~$7.3 million, or ~~9.9%~~10.1%, compared to the same period last year due to increased loan ~~balances.~~ balances and the impact of higher short-term interest rates. Provision for credit losses decreased $0.7 million due to positive macro-economic data and credit metrics in 2022 as compared to 2021. Noninterest income ~~decreased $8.6~~increased $4.0 million, or ~~26.6%~~6.9%, for the same ~~period driven~~period. This increase is primarily due to an allocated portion of the gain on the sale of Visa Inc. Class B common shares, partially offset by ~~a decrease~~the decline in company-owned life insurance for the six months ended June 30, 2022 as compared to the prior year. This increase was partially offset by decreases of ~~$3.4~~$3.6 million in ~~trust~~wealth management income, $2.6 million on gains on the sale of mortgage loans, and ~~securities processing income, a decrease of~~ $2.3 million in ~~equity earnings on alternative investments, and a decrease of $1.3 million in gains on sale of mortgage originations.~~investment security gains. Noninterest expense ~~decreased $0.3~~increased $2.5 million, or ~~0.6%~~2.1%, primarily due to ~~a decrease of $4.1 million in salaries and employee benefits expense, partially offset by~~ increases of ~~$1.8~~$4.2 million in technology, service, and overhead expenses and ~~$1.3~~$2.8 million in processing fees, ~~expense.~~partially offset by a decrease of $5.0 million in salaries and employee benefits.

Total assets of the Company decreased by ~~$2.1~~$5.2 billion, or ~~4.9%~~12.1%, as of ~~March 31,~~June 30, 2022, compared to December 31, 2021, primarily due to a decrease of ~~$2.5~~$7.0 billion, or ~~28.1%~~79.4%, in interest-bearing due from banks, partially offset by an increase of ~~$560.8 million,~~$1.8 billion, or ~~3.3%~~10.5%, in loan balances.

Total assets of the Company increased ~~$5.9 billion,~~$888.8 million, or ~~17.1%~~2.4%, as of ~~March 31,~~June 30, 2022, compared to ~~March 31,~~June 30, 2021, primarily due to an increase in ~~interest-bearing due from banks~~loan balances of ~~$2.5~~$2.1 billion, or ~~64.6%~~12.2%, an increase in investment securities of ~~$2.4~~$2.1 billion, or ~~21.4%~~17.7%, ~~and an increase in loan balances~~partially offset by a decrease of ~~$1.2~~$3.2 billion, or ~~7.5%.~~63.9% in interest-bearing due from banks. Total assets, including interest-bearing due from banks, ~~are~~is being impacted by ~~excess liquidity~~volatility in the ~~market due~~economic markets and governmental responses to ~~PPP.~~inflation, geopolitical tensions, supply chain constraints, and the COVID-19 pandemic. These changing conditions could have impacts on the consolidated balance sheets of the Company for the remainder of the year.

	March 31,				December 31,		June 30,				December 31,
	2022		2021		2021		2022		2021		2021
Total assets	$	40,605,742	$	34,669,389	$	42,693,484	$	37,507,841	$	36,619,015	$	42,693,484
Loans, net of unearned interest		17,732,084		16,507,660		17,172,148		18,972,908		16,916,093		17,172,148
Total securities		13,501,507		11,123,370		13,815,903		13,800,946		11,726,407		13,815,903
Interest-bearing due from banks		6,355,941		3,860,763		8,841,906		1,825,295		5,059,098		8,841,906
Total earning assets		38,728,008		32,915,833		40,849,603		35,488,003		34,644,720		40,849,603
Total deposits		34,362,565		28,280,792		35,599,927		31,486,024		30,048,471		35,599,927
Total borrowed funds		3,112,571		3,029,892		3,509,979		2,933,788		3,053,947		3,509,979

Loans represent the Company’s largest source of interest income. In addition to growing the commercial loan portfolio, management believes its middle market commercial business and its consumer business, including home equity and credit card loan products, are the market niches that represent its best opportunity to cross-sell fee-related services and generate additional noninterest income for the Company.

Actual loan balances totaled ~~$17.7~~$19.0 billion as of ~~March 31,~~June 30, 2022, and increased ~~$560.8 million,~~$1.8 billion, or ~~3.3%~~10.5%, compared to December 31, 2021, and increased ~~$1.2~~$2.1 billion, or ~~7.5%~~12.2%, compared to ~~March 31,~~June 30, 2021. Compared to December 31, 2021, commercial and industrial loans increased ~~$355.8 million,~~$1.1 billion, or ~~4.9%~~14.5%, commercial real estate loans increased ~~$152.0~~$458.3 million, or ~~2.4%~~7.3%, and consumer real estate loans increased ~~$73.3~~$208.9 million, or ~~3.2%~~9.0%. Compared to ~~March 31,~~June 30, 2021, commercial and industrial loans increased ~~$444.5~~$924.2 million, or ~~6.2%~~12.5%, commercial real estate loans increased $479.5 million, or 7.7%, consumer real estate loans increased ~~$393.6~~$390.1 million, or ~~19.7%, commercial real estate loans increased $269.2 million, or 4.4%~~18.2%, and leases and other loans increased ~~$89.1~~$113.7 million, or ~~49.5%~~63.4%. During the first quarter of 2022, the Company sold its factoring loan portfolio to an alternative financing company. These loans had actual balances of $107.2 million and ~~$152.4~~$109.1 million as of December 31, 2021 and ~~March 31,~~June 30, 2021, respectively, and had been included in the specialty lending loan segment. See further information in Note 4, “Loans and Allowance for Credit Losses” in the Notes to Consolidated Financial Statements.

Nonaccrual, past due and restructured loans are discussed under “Credit Risk Management” within “Item 3. Quantitative and Qualitative Disclosures About Market Risk” in this report.

The Company’s investment portfolio contains trading, AFS, and HTM securities, as well as FRB stock, FHLB stock, and other miscellaneous investments. Investment securities totaled ~~$13.5~~$13.8 billion as of ~~March 31,~~both June 30, 2022, and ~~$13.8 billion as of~~ December 31, 2021, and comprised ~~34.9%~~38.9% and 33.8% of the Company’s earning assets, respectively, as of those dates.

During the first ~~quarter~~half of 2022, securities with an amortized cost of ~~$3.0~~$3.8 billion and a fair value of ~~$2.9~~$3.6 billion were transferred from the available-for-sale classification to the held-to-maturity classification as the Company has the positive intent and ability to hold these securities to maturity. The ~~transfer~~transfers of securities ~~was~~were made at fair value at the time of transfer. See further information in Note 5, “Securities” in the Notes to Consolidated Financial Statements.

The Company’s AFS securities portfolio comprised ~~63.3%~~56.1% of the Company’s investment securities portfolio at ~~March 31,~~June 30, 2022 and 86.7% at December 31, 2021. The Company’s AFS securities portfolio provides liquidity as a result of the composition and average life of the underlying securities. This liquidity can be used to fund loan growth or to offset the outflow of traditional funding sources. The average life of the AFS securities portfolio was ~~74.1~~73.0 months at ~~March 31,~~June 30, 2022, compared to 67.6 months at December 31, 2021, and ~~83.9~~78.4 months at ~~March 31,~~

June 30, 2021. In addition to providing a potential source of liquidity, the AFS securities portfolio can be used as a tool to manage interest rate sensitivity. The Company’s goal in the management of its AFS securities portfolio is to maximize return within the Company’s parameters of liquidity goals, interest rate risk, and credit risk.

Management expects collateral pledging requirements for public funds, loan demand, and deposit funding to be the primary factors impacting changes in the level of AFS securities. There were ~~$9.3~~$9.8 billion and $10.2 billion of securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase agreements at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. Of ~~these amounts, $148.7~~this amount, securities with a market value of $140.7 million and $171.2 million ~~of securities~~ at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively, were pledged at the Federal Reserve Discount Window but were unencumbered as of those dates.

The Company’s HTM securities portfolio consists of U.S. agency-backed securities, mortgage-backed securities, general obligation bonds, and private placement ~~bonds, which are issued primarily to refinance existing revenue bonds in the healthcare and education sectors.~~bonds. The HTM portfolio, net of the ACL totaled ~~$4.6~~$5.7 billion ~~at March 31, 2022~~ and $1.5 billion at June 30, 2022 and December 31, ~~2021.~~2021, respectively. The average life of the HTM portfolio was ~~8.6~~9.3 years at ~~March 31,~~June 30, 2022, compared to 5.2 years at December 31, 2021, and ~~6.1~~5.8 years at ~~March 31,~~June 30, 2021.

The securities portfolio generates the Company’s second largest component of interest income. The securities portfolio achieved an average yield on a tax-equivalent basis of ~~2.21%~~2.24% for the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022, compared to ~~2.23%~~2.20% for the same period in 2021.

Deposits decreased ~~$1.2~~$4.1 billion, or ~~3.5%~~11.6%, from December 31, 2021 to ~~March 31,~~June 30, 2022 and increased ~~$6.1~~$1.4 billion, or ~~21.5%~~4.8%, from ~~March 31,~~June 30, 2021 to ~~March 31,~~June 30, 2022. ~~Total~~Noninterest-bearing deposits decreased $1.4 billion, and total interest-bearing deposits decreased ~~$841.5 million and total noninterest-bearing deposits decreased $395.9 million~~$2.7 billion from December 31, 2021 to ~~March 31,~~June 30, 2022. ~~Total noninterest-bearing~~Noninterest-bearing deposits increased ~~$4.3~~$2.4 billion, and total interest-bearing deposits ~~increased $1.7 billion~~decreased $975.0 million from ~~March 31,~~June 30, 2021 to ~~March 31,~~June 30, 2022. ~~The increase in deposits as compared to prior periods is related to the excess liquidity~~Deposit balances are being impacted by volatility in the ~~market created by the PPP~~economic markets and ~~customer behavior changes related~~governmental responses to inflation, geopolitical tensions, supply chain constraints, and the COVID-19 pandemic. These changing conditions could have impacts on the consolidated balance sheets of the Company for the remainder of the year.

Deposits represent the Company’s primary funding source for its asset base. In addition to the core deposits garnered by the Company’s retail branch structure, the Company continues to focus on its cash management services, as well as its trust and mutual fund servicing businesses, in order to attract and retain additional deposits. Management believes a strong core deposit composition is one of the Company’s key strengths given its competitive product mix.

Long-term debt totaled ~~$272.0~~$272.5 million ~~at March 31,~~as of June 30, 2022, compared to $271.5 million as of December 31, 2021, and ~~$270.1~~$270.6 million as of ~~March 31,~~June 30, 2021. In September 2020, the Company issued $200.0 million in aggregate subordinated notes due in September 2030. The Company received $197.7 million, after deducting underwriting discounts and commissions and offering expenses, and used the proceeds from the offering for general corporate purposes, including, among other uses, contributing Tier 1 capital into the Bank. The subordinated notes were issued with a fixed-to-fixed rate of 3.70% and an effective rate of 3.93%, due to issuance costs, with an interest rate reset date of September 2025. The remainder of the Company’s long-term debt was assumed from the acquisition of Marquette Financial Companies (Marquette) and consists of debt obligations payable to four unconsolidated trusts (Marquette Capital Trust I, Marquette Capital Trust II, Marquette Capital Trust III, and Marquette Capital Trust IV) that previously issued trust preferred securities. These long-term debt obligations have an aggregate contractual balance of $103.1 million. Interest rates on trust preferred securities are tied to the three-month LIBOR rate with spreads ranging from 133 basis points to 160 basis points and reset quarterly. The trust preferred securities have maturity dates ranging from January 2036 to September 2036.

The Company has a revolving line of credit with Wells Fargo Bank, N.A. which allows the Company to borrow up to $30.0 million for general working capital purposes. The interest rate applied to borrowed balances will be at the Company’s option either 1.25% above LIBOR or 1.75% below the prime rate on the date of an advance. The Company pays a 0.4% unused commitment fee for unused portions of the revolving line of credit. As of ~~March 31,~~June 30, 2022, the Company had no advances outstanding on this revolving line of credit. ~~This borrowing is included in the Short-term debt line on the Company’s Consolidated Balance Sheets.~~

Federal funds purchased and securities sold under agreements to repurchase totaled ~~$2.8~~$2.7 billion as of ~~March 31,~~June 30, 2022, $3.2 billion at December 31, 2021, and $2.8 billion at ~~March 31,~~June 30, 2021. Repurchase agreements are transactions involving the exchange of investment funds by the customer for securities by the Company under an agreement to

repurchase the same or similar issues at an agreed-upon price and date. The level of borrowings could be impacted by earning asset mix changes in the Company’s balance sheet from the impacts of inflation and the COVID-19 pandemic. These changing conditions could have impacts on the consolidated balance sheets of the Company for the remainder of the year.

The Company places a significant emphasis on the maintenance of a strong capital position, which promotes investor confidence, provides access to funding sources under favorable terms, and enhances the Company’s ability to capitalize on business growth and acquisition opportunities. Higher levels of liquidity, however, bear corresponding costs, measured in terms of lower yields on short-term, more liquid earning assets and higher expenses for extended liability maturities. The Company manages capital for each subsidiary based upon the subsidiary’s respective risks and growth opportunities as well as regulatory requirements.

Total shareholders’ equity was ~~$2.7~~$2.6 billion at ~~March 31,~~June 30, 2022, a ~~$397.0~~$502.5 million decrease compared to December 31, 2021, and a ~~$209.8~~$447.4 million decrease compared to ~~March 31,~~June 30, 2021.

The Company’s Board of Directors authorized, at its April 26, 2022, April 27, 2021, and April 28, 2020 meetings, the repurchase of up to two million shares of the Company’s common stock during the twelve months following each meeting (each a Repurchase Authorization). During the ~~three-month~~six-month periods ended ~~March 31,~~June 30, 2022 and 2021, the Company acquired ~~226,706~~330,999 shares and ~~52,658~~53,374 shares, respectively, of its common stock pursuant to the applicable Repurchase Authorization.

At the Company’s quarterly board meeting, the Board of Directors declared a $0.37 per share quarterly cash dividend payable on ~~July 1,~~October 3, 2022, to shareholders of record at the close of business on ~~June 10,~~September 12, 2022.

Through the Company’s relationship with the FHLB of Des Moines, the Company owns $10.0 million of FHLB stock and has access to additional liquidity and funding sources through FHLB advances. The Company’s borrowing capacity is dependent upon the amount of collateral the Company places at the FHLB. The Company’s borrowing capacity with the FHLB was $1.6 billion as of ~~March 31,~~June 30, 2022. The Company had no outstanding FHLB advances at FHLB of Des Moines as of ~~March 31,~~June 30, 2022.

Risk-based capital guidelines established by regulatory agencies set minimum capital standards based on the level of risk associated with a financial institution’s assets. The Company has implemented the Basel III regulatory capital rules adopted by the FRB. Basel III capital rules include a minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5% and a minimum tier 1 risk-based capital ratio of 6%. A financial institution’s total capital is also required to equal at least 8% of risk-weighted assets.

The risk-based capital guidelines indicate the specific risk weightings by type of asset. Certain off-balance sheet items (such as standby letters of credit and binding loan commitments) are multiplied by credit conversion factors to translate them into balance sheet equivalents before assigning them specific risk weightings. The Company is also required to maintain a leverage ratio equal to or greater than 4%. The leverage ratio is calculated as the ratio of tier 1 core capital to total average assets, less goodwill and intangibles.

U.S. banking agencies in December 2018 approved a final rule to address the impact of CECL on regulatory capital by allowing banking organizations the option to phase in the day-one impact of CECL until the first quarter of 2023. In March 2020, the U.S. banking agencies issued an interim final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. The Company ~~is electing~~elected this alternative option instead of the one described in the December 2018 rule.

The Company's capital position as of ~~March 31,~~June 30, 2022 is summarized in the table below and exceeded regulatory requirements.

	Three Months Ended						Three Months Ended						Six Months Ended
	March 31,						June 30,						June 30,
RATIOS	2022			2021			2022			2021			2022			2021
Common equity tier 1 capital ratio		11.81	%		12.25	%		11.44	%		11.91	%		11.44	%		11.91	%
Tier 1 risk-based capital ratio		11.81			12.25			11.44			11.91			11.44			11.91
Total risk-based capital ratio		13.55			14.28			13.00			13.84			13.00			13.84
Leverage ratio		7.53			8.08			8.17			8.00			8.17			8.00
Return on average assets		1.10			1.14			1.47			1.02			1.28			1.08
Return on average equity		14.65			12.56			20.83			11.43			17.60			11.98
Average equity to assets		7.49			9.05			7.05			8.96			7.27			9.00

	Three Months Ended						Three Months Ended						Six Months Ended
	March 31,						June 30,						June 30,
Per Share Data	2022			2021			2022			2021			2022			2021
Earnings - basic	$	2.19		$	1.93		$	2.85		$	1.81		$	5.03		$	3.74
Earnings - diluted		2.17			1.91			2.83			1.79			4.99			3.70
Cash dividends		0.37			0.32			0.37			0.32			0.74			0.64
Dividend payout ratio		16.9	%		16.6	%		12.98	%		17.68	%		14.71	%		17.11	%
Book value	$	56.78		$	61.24		$	54.71		$	63.92		$	54.71		$	63.92

The Company’s main off-balance sheet arrangements are loan commitments, commercial and standby letters of credit, futures contracts and forward exchange contracts, which have maturity dates rather than payment due dates. See Note 10, “Commitments, Contingencies and Guarantees” in the Notes to Consolidated Financial Statements for detailed information on these arrangements. The level of the outstanding commitments ~~will~~could be impacted by ~~financial impacts related~~volatility in the economic markets and governmental responses to inflation, geopolitical tensions, supply chain constraints, and the COVID-19 pandemic. These changing conditions could have impacts on the consolidated balance sheets of the Company for the remainder of the year

The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to customers and suppliers, allowance for credit losses, bad debts, investments, financing operations, long-lived assets, taxes, other contingencies, and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which have formed the basis for making such judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Under different assumptions or conditions, actual results may differ from the recorded estimates.

A summary of critical accounting policies is listed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Form 10-K.

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair value of a financial instrument. These changes may be the result of various factors, including interest rates, foreign exchange prices, commodity prices, or equity prices. Financial instruments that are subject to market risk can be classified either as held for trading or held for purposes other than trading.

The Company is subject to market risk primarily through the effect of changes in interest rates of its assets held for purposes other than trading. The following discussion of interest rate risk, however, combines instruments held for trading and instruments held for purposes other than trading because the instruments held for trading represent such a small portion of the Company’s portfolio that the interest rate risk associated with them is immaterial.

In the banking industry, a major risk exposure is changing interest rates. To minimize the effect of interest rate changes to net interest income and exposure levels to economic losses, the Company manages its exposure to changes in interest rates through asset and liability management within guidelines established by its Asset Liability Committee (ALCO) and approved by the Board. The ALCO is responsible for approving and ensuring compliance with asset/liability management policies, including interest rate exposure. The Company’s primary method for measuring and analyzing consolidated interest rate risk is the Net Interest Income Simulation Analysis. The Company also uses a Net Portfolio Value model to measure market value risk under various rate change scenarios and a gap analysis to measure maturity and repricing relationships between interest-earning assets and interest-bearing liabilities at specific points in time. On a limited basis, the Company uses hedges such as swaps, rate floors, and futures contracts to manage interest rate risk on certain loans, ~~trading~~ securities, and trust preferred securities. See further information in Note 11 “Derivatives and Hedging Activities” in the Notes to the Consolidated Financial Statements.

Overall, the Company manages interest rate risk by positioning the balance sheet to maximize net interest income while maintaining an acceptable level of interest rate and credit risk, remaining mindful of the relationship among profitability, liquidity, interest rate risk, and credit risk.

The Company’s primary interest rate risk tool, the Net Interest Income Simulation Analysis, measures interest rate risk and the effect of interest rate changes on net interest income and net interest margin. This analysis incorporates all of the Company’s assets and liabilities together with assumptions that reflect the current interest rate environment. Through these simulations, management estimates the impact on net interest income of a 300 basis-point upward or a 100 basis point downward gradual change (e.g. ramp) and immediate change (e.g. shock) of market interest rates over a two year period. In ramp scenarios, rates change gradually for a one-year period and remain constant in year two. In shock scenarios, rates change immediately and the change is sustained for the remainder of the two-year scenario horizon. Assumptions are made to project rates for new loans and deposits based on historical analysis, management outlook and repricing strategies. Asset prepayments and other market risks are developed from industry estimates of prepayment speeds and other market changes. The results of these simulations can be significantly influenced by assumptions utilized and management evaluates the sensitivity of the simulation results on a regular basis.

Table 11 shows the net interest income increase or decrease over the next two years as of ~~March 31,~~June 30, 2022 and 2021 based on hypothetical changes in interest rates and a constant sized balance sheet with runoff being replaced.

	Hypothetical change in interest rate – Rate Ramp												Hypothetical change in interest rate – Rate Ramp
	Year One						Year Two						Year One						Year Two
	March 31, 2022			March 31, 2021			March 31, 2022			March 31, 2021			June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Change in basis points	Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change
300		6.1	%		3.0	%		23.3	%		16.1	%		5.3	%		1.4	%		20.4	%		14.2	%
200		3.9			1.8			15.4			10.9			3.1			0.7			12.8			9.6
100		1.7			0.6			7.5			5.4			1.0			0.1			5.2			4.8
Static		—			—			—			—			—			—			—			—
(100)		(3.4	)		(2.3	)		(9.7	)		(7.9	)		(4.3	)		(2.1	)		(12.1	)		(8.4	)

	Hypothetical change in interest rate – Rate Shock												Hypothetical change in interest rate – Rate Shock
	Year One						Year Two						Year One						Year Two
	March 31, 2022			March 31, 2021			March 31, 2022			March 31, 2021			June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Change in basis points	Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change
300		11.6	%		6.1	%		23.7	%		17.1	%		10.3	%		3.6	%		19.7	%		15.5	%
200		7.5			3.8			15.7			11.7			6.5			2.2			12.3			10.7
100		3.4			1.5			7.6			5.9			2.6			0.7			4.9			5.4
Static		—			—			—			—			—			—			—			—
(100)		(6.0	)		(4.9	)		(10.9	)		(9.7	)		(7.0	)		(4.9	)		(11.9	)		(10.6	)

The Company is positioned slightly asset sensitive to changes in interest rates in the next year. Net interest income is predicted to increase in all upward rate ramp and shock scenarios. In down rate scenarios, income is predicted to decrease in all scenarios. The increase in net interest income in rising rate scenarios is due to the projections of yields on earning assets increasing more than the cost of paying liabilities. In year two, net interest income is predicted to rise in all increasing rate scenarios and decrease in falling rate scenarios. The Company’s ability to price deposits in a rising rate environment consistent with our history is a key assumption in these scenarios.

The Company carries securities in a trading account that is maintained according to Board-approved policy and procedures. The policy limits the amount and type of securities that can be carried in the trading account, requires compliance with any limits under applicable law and regulations, and mandates the use of a value-at-risk methodology to manage price volatility risks within financial parameters. The risk associated with the carrying of trading securities is offset by utilizing financial instruments including exchange-traded financial futures as well as short sales of U.S. Treasury and Corporate securities. The trading securities and related hedging instruments are marked-to-market daily. The trading account had a balance of ~~$17.1~~$9.6 million as of ~~March 31,~~June 30, 2022, $31.9 million as of December 31, 2021, and ~~$29.1~~$40.6 million as of ~~March 31,~~June 30, 2021. Securities sold not yet purchased (i.e. short positions) totaled ~~$1.6~~$1.3 million at ~~March 31,~~June 30, 2022, $3.2 million as of December 31, 2021, and ~~$2.0~~$9.7 million at ~~March 31,~~June 30, 2021 and are classified within the Other liabilities line of the Company’s Consolidated Balance Sheets.

The Company is subject to market risk primarily through the effect of changes in interest rates of its assets held for purposes other than trading. The discussion in Table 11 above of interest rate risk, however, combines instruments held for trading and instruments held for purposes other than trading, because the instruments held for trading represent such a small portion of the Company’s portfolio that the interest rate risk associated with them is immaterial.

The Company has minimal foreign currency risk as a result of foreign exchange contracts. See Note 10 “Commitments, Contingencies and Guarantees” in the notes to the Consolidated Financial Statements.

Credit risk represents the risk that a customer or counterparty may not perform in accordance with contractual terms. The Company utilizes a centralized credit administration function, which provides information on the Bank’s risk levels, delinquencies, an internal ranking system and overall credit exposure. Loan requests are centrally reviewed to ensure the consistent application of the loan policy and standards. In addition, the Company has an internal loan review staff that operates independently of the Bank. This review team performs periodic examinations of the Bank’s loans for credit quality, documentation and loan administration. The respective regulatory authorities governing the Bank also review loan portfolios.

A primary indicator of credit quality and risk management is the level of nonperforming loans. Nonperforming loans include both nonaccrual loans and restructured loans on nonaccrual. The Company’s nonperforming loans ~~increased $33.7~~decreased $40.1 million to ~~$110.4~~$18.1 million at ~~March 31,~~June 30, 2022, compared to ~~March 31,~~June 30, 2021, and ~~increased $18.1~~decreased $74.2 million, compared to December 31, 2021. The increase in nonperforming loans as compared to March 31, 2021 is primarily related to two credits in the commercial and industrial loan segment. The increase in nonperforming loans as compared to December 31, 2021 is primarily related to one credit in the specialty lending segment.

The Company had ~~$4.7~~$12.3 million, and $1.9 million of other real estate owned as of ~~March 31, 2021.~~June 30, 2022 and 2021, respectively. Loans past due more than 90 days and still accruing interest totaled ~~$3.6~~$3.4 million as of ~~March 31,~~June 30, 2022, compared to ~~$1.8~~$1.3 million at ~~March 31,~~June 30, 2021 and $2.6 million as of December 31, 2021.

A loan is generally placed on nonaccrual status when payments are past due 90 days or more and/or when management has considerable doubt about the borrower’s ability to repay on the terms originally contracted. The accrual of interest is discontinued and recorded thereafter only when received in cash.

Certain loans are restructured to provide a reduction or deferral of interest or principal due to deterioration in the financial condition of the respective borrowers. The Company had ~~$7.1~~$11.2 million of restructured loans at ~~March 31,~~June 30, 2022, ~~$7.9~~$7.7 million at ~~March 31,~~June 30, 2021, and $7.3 million at December 31, 2021.

	March 31,						December 31,			June 30,						December 31,
	2022			2021			2021			2022			2021			2021
Nonaccrual loans	$	103,429		$	69,098		$	85,207		$	11,359		$	50,791		$	85,207
Restructured loans on nonaccrual		6,927			7,608			7,093			6,758			7,428			7,093
Total nonperforming loans		110,356			76,706			92,300			18,117			58,219			92,300
Other real estate owned		—			4,740			—			12,313			1,860			—
Total nonperforming assets	$	110,356		$	81,446		$	92,300		$	30,430		$	60,079		$	92,300
Loans past due 90 days or more	$	3,600		$	1,773		$	2,633		$	3,446		$	1,265		$	2,633
Restructured loans accruing		185			280			189			4,434			276			189
Allowance for credit losses on loans		179,288			202,814			194,771			164,346			200,563			194,771
Ratios:
Nonperforming loans as a percent of loans		0.62	%		0.46	%		0.54	%		0.10	%		0.34	%		0.54	%
Nonperforming assets as a percent of loans plus other real estate owned		0.62			0.49			0.54			0.16			0.36			0.54
Nonperforming assets as a percent of total assets		0.27			0.23			0.22			0.08			0.16			0.22
Loans past due 90 days or more as a percent of loans		0.02			0.01			0.02			0.02			0.01			0.02
Allowance for credit losses on loans as a percent of loans		1.01			1.23			1.13			0.87			1.19			1.13
Allowance for credit losses on loans as a multiple of nonperforming loans	1.62x			2.64x			2.11x			9.07x			3.44x			2.11x

Liquidity represents the Company’s ability to meet financial commitments through the maturity and sale of existing assets or availability of additional funds. The Company believes that the most important factor in the preservation of liquidity is maintaining public confidence that facilitates the retention and growth of a large, stable supply of core deposits and wholesale funds. Ultimately, the Company believes public confidence is generated through profitable operations, sound credit quality and a strong capital position. The primary source of liquidity for the Company is regularly scheduled payments on and maturity of assets, which include ~~$8.6~~$7.7 billion of high-quality securities available for sale as of ~~March 31,~~June 30, 2022. The liquidity of the Company and the Bank is also enhanced by its activity in the federal funds market and by its core deposits. Additionally, management believes it can raise debt or equity capital on favorable terms in the future, should the need arise.

Another factor affecting liquidity is the amount of deposits and customer repurchase agreements that have pledging requirements. All customer repurchase agreements require collateral in the form of a security. The U.S. Government, other public entities, and certain trust depositors require the Company to pledge securities if their deposit balances are greater than the FDIC-insured deposit limitations. These pledging requirements affect liquidity risk in that the related security cannot otherwise be disposed of due to the pledging restriction. There were ~~$9.3~~$9.8 billion and $10.2 billion of securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase agreements at ~~March 31,~~June 30, 2022 and December 31, 2021, respectively. Of these amounts, ~~$148.7~~securities with a market value of $140.7 million at June 30, 2022 and $171.2 million ~~of securities~~ at ~~March 31, 2022 and~~ December 31, 2021 ~~respectively,~~ were pledged at the Federal Reserve Discount Window but were unencumbered as of those dates.

The Company also has other commercial commitments that may impact liquidity. These commitments include unused commitments to extend credit, standby letters of credit and financial guarantees, and commercial letters of credit. The total amount of these commercial commitments at ~~March 31,~~June 30, 2022 was ~~$14.4~~$15.5 billion. Since many of these commitments expire without being drawn upon, the total amount of these commercial commitments does not necessarily represent the future cash requirements of the Company.

The Company’s cash requirements consist primarily of dividends to shareholders, debt service, operating expenses, and treasury stock purchases. Management fees and dividends received from bank and non-bank subsidiaries traditionally have been sufficient to satisfy these requirements and are expected to be sufficient in the future. The Bank is subject to various rules regarding payment of dividends to the Company. For the most part, the Bank can pay dividends at least equal to its current year’s earnings without seeking prior regulatory approval. The Company also uses cash to inject capital into its bank and non-bank subsidiaries to maintain adequate capital as well as fund strategic initiatives.

In September 2020, the Company issued $200.0 million in aggregate subordinated notes due in September 2030. The Company received $197.7 million, after deducting underwriting discounts and commissions and offering expenses, and used the proceeds from the offering for general corporate purposes, including, among other uses, contributing Tier 1 capital into the Bank. The subordinated notes were issued with a fixed-to-fixed rate of 3.70% and an effective rate of 3.93%, due to issuance costs, with an interest rate reset date of September 2025.

To enhance general working capital needs, the Company has a revolving line of credit with Wells Fargo Bank, N.A., which allows the Company to borrow up to $30.0 million for general working capital purposes. The interest rate applied to borrowed balances will be at the Company’s option, either 1.25% above LIBOR or 1.75% below the prime rate on the date of an advance. The Company pays a 0.4% unused commitment fee for unused portions of the line of credit. The Company had no advances outstanding as of ~~March 31,~~June 30, 2022.

The Company is a member bank of the FHLB. The Company owns $10.0 million of FHLB stock and has access to additional liquidity and funding sources through FHLB advances. Additionally, the Company has access to borrow up to $1.6 billion through advances at the FHLB of Des Moines but had no outstanding FHLB Des Moines advances as of ~~March 31,~~June 30, 2022.

Operational risk generally refers to the risk of loss resulting from the Company’s operations, including those operations performed for the Company by third parties. This would include but is not limited to the risk of fraud by employees or persons outside the Company, the execution of unauthorized transactions by employees or others, errors relating to transaction processing, breaches of the internal control system and compliance requirements, and unplanned interruptions in service. This risk of loss also includes the potential legal or regulatory actions that could arise as a result of an operational deficiency, or as a result of noncompliance with applicable regulatory standards. The Company must comply with a number of legal and regulatory requirements.

The Company operates in many markets and relies on the ability of its employees and systems to properly process a high number of transactions. In the event of a breakdown in internal control systems, improper operation of systems or improper employee actions, the Company could suffer financial loss, face regulatory action and suffer damage to its reputation. In order to address this risk, management maintains a system of internal controls with the objective of providing proper transaction authorization and execution, safeguarding of assets from misuse or theft, and ensuring the reliability of financial and other data.

The Company maintains systems of internal controls that provide management with timely and accurate information about the Company’s operations. These systems have been designed to manage operational risk at appropriate levels given the Company’s financial strength, the environment in which it operates, and considering factors such as competition and regulation. The Company has also established procedures that are designed to ensure that policies relating to conduct, ethics, and business practices are followed on a uniform basis. In certain cases, the Company has experienced losses from operational risk. Such losses have included the effects of operational errors that the Company has discovered and included as expense in the statement of income. While there can be no assurance that the Company will not suffer such losses in the future, management continually monitors and works to improve its internal controls, systems, and corporate-wide processes and procedures.

The Sarbanes-Oxley Act of 2002, as amended, requires the Chief Executive Officer and the Chief Financial Officer to make certain certifications under this Form 10-Q with respect to the Company’s disclosure controls and procedures and internal control over financial reporting. The Company has a Code of Ethics that expresses the values that drive employee behavior and maintains the Company’s commitment to the highest standards of ethics.

The Company’s management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company's “disclosure controls and procedures” (as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this Form 10-Q. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Form 10-Q, the Company’s disclosure controls and procedures were effective for ensuring that the Company’s SEC filings are recorded, processed, summarized, and reported within the time period required and that information required to be disclosed by the Company is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

There has been no change in the Company’s internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

In the normal course of business, the Company and its subsidiaries are named defendants in various legal proceedings. In the opinion of management, after consultation with legal counsel, none of these lawsuits are expected to have a materially adverse effect on the financial position, results of operations, or cash flows of the Company.

There were no material changes to the risk factors as previously disclosed in response to Item 1A to Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The table below sets forth the information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our common stock during the three-month period ended ~~March 31,~~June 30, 2022.

On April 27, 2021, the Company announced a plan to repurchase up to two million shares of common stock, which terminated on April 26, 2022. On April 26, 2022, the Company announced a plan to repurchase up to two million shares of common stock, which will terminate on April 25, 2023. The Company has not made any repurchases other than through these Repurchase Authorizations. ~~The Company is not currently engaging in repurchases. In the future, it may determine to resume repurchases.~~ All share purchases pursuant to the Repurchase Authorizations are intended to be within the scope of Rule 10b-18 promulgated under the Exchange Act. Rule 10b-18 provides a safe harbor for purchases in a given day if the Company satisfies the manner, timing and volume conditions of the rule when purchasing its own shares of common stock.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Missouri		43-0903811
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

1010 Grand Boulevard, Kansas City, Missouri		64106
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value	UMBF	The NASDAQ Global Select Market

PART I – FINANCIAL INFORMATION		3

ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
CONSOLIDATED BALANCE SHEETS		3
CONSOLIDATED STATEMENTS OF INCOME		4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		5
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY		6
CONSOLIDATED STATEMENTS OF CASH FLOWS		7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		9
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	5557
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	7277
ITEM 4.	CONTROLS AND PROCEDURES	7782

PART II - OTHER INFORMATION		7883

ITEM 1.	LEGAL PROCEEDINGS	7883
ITEM 1A.	RISK FACTORS	7883
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	7883
ITEM 6.	EXHIBITS	7984
SIGNATURES		8085

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Net income	$	137,556		$	87,412		$	243,519		$	180,055
Other comprehensive (loss) income, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net		(308,352	)		76,335			(931,262	)		(122,703	)
Less: Reclassification adjustment for gains included in net income		—			(1,300	)		—			(4,020	)
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity		12,539			—			13,121			—
Change in unrealized gains and losses on debt securities during the period		(295,813	)		75,035			(918,141	)		(126,723	)
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges		4,437			(3,422	)		9,117			3,081
Less: Reclassification adjustment for gains included in net income		(1,090	)		(877	)		(1,941	)		(1,719	)
Change in unrealized gains and losses on derivative hedges		3,347			(4,299	)		7,176			1,362
Other comprehensive (loss) income, before tax		(292,466	)		70,736			(910,965	)		(125,361	)
Income tax benefit (expense)		70,791			(16,826	)		219,848			30,128
Other comprehensive (loss) income		(221,675	)		53,910			(691,117	)		(95,233	)
Comprehensive (loss) income	$	(84,119	)	$	141,322		$	(447,598	)	$	84,822

Large accelerated filer	☒	Accelerated filer	☐
Non- accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

FINANCING ACTIVITIES
Net (decrease) increase in demand and savings deposits		(1,207,226	)		1,441,071
Net decrease in time deposits		(264,608	)		(211,530	)
Net (decrease) increase in fed funds purchased and repurchase agreements		(397,900	)		444,321
Cash dividends paid		(17,917	)		(15,456	)
Proceeds from exercise of stock options and sales of treasury shares		615			12,237
Purchases of treasury stock		(22,487	)		(4,027	)
Net cash (used in) provided by financing activities		(1,909,523	)		1,666,616
(Decrease) increase in cash and cash equivalents		(2,527,906	)		695,966
Cash and cash equivalents at beginning of period		9,214,564			3,497,566
Cash and cash equivalents at end of period	$	6,686,658		$	4,193,532

Supplemental disclosures:
Income tax payments	$	795	$	622
Total interest payments		13,043		14,337
Noncash disclosures:
Acquisition of low-income housing tax credit investments	$	6,398	$	—
Commitment to fund low-income housing tax credit investments		6,398		—
Transfer of securities from available-for-sale to held-to-maturity		2,857,187		—

FINANCING ACTIVITIES
Net (decrease) increase in demand and savings deposits		(4,042,398	)		3,195,002
Net decrease in time deposits		(298,259	)		(197,782	)
Net (decrease) increase in fed funds purchased and repurchase agreements		(577,152	)		467,892
Cash dividends paid		(35,790	)		(30,935	)
Proceeds from exercise of stock options and sales of treasury shares		1,029			14,425
Purchases of treasury stock		(31,806	)		(4,088	)
Net cash (used in) provided by financing activities		(4,984,376	)		3,444,514
(Decrease) increase in cash and cash equivalents		(7,098,077	)		1,954,040
Cash and cash equivalents at beginning of period		9,214,564			3,497,566
Cash and cash equivalents at end of period	$	2,116,487		$	5,451,606


Supplemental disclosures:
Income tax payments	$	54,785		$	48,003
Total interest payments		31,239			24,388
Noncash disclosures:
Acquisition of low-income housing tax credit investments	$	27,490		$	12,622
Commitment to fund low-income housing tax credit investments		27,490			12,622
Transfer of loans to other real estate owned		12,313			—
Transfer of securities from available-for-sale to held-to-maturity		3,593,711			—

	Six Months Ended June 30, 2021
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total
Allowance for credit losses:
Beginning balance	$	122,700		$	5,219		$	61,931		$	6,586		$	1,480		$	15,786		$	2,271		$	215,973		$	2,610	$	218,583
Charge-offs		(4,719	)		(31,945	)		—			(86	)		(248	)		(3,169	)		(8	)		(40,175	)		—		(40,175	)
Recoveries		3,761			151			1,347			113			87			1,014			18			6,491			—		6,491
Provision		(3,621	)		32,476			(6,544	)		(806	)		(462	)		(1,888	)		(881	)		18,274			226		18,500
Ending balance - ACL	$	118,121		$	5,901		$	56,734		$	5,807		$	857		$	11,743		$	1,400		$	200,563		$	2,836	$	203,399
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55	$	5,588
Provision		(1,515	)		(74	)		(121	)		(3	)		(173	)		—			(150	)		(2,036	)		36		(2,000	)
Ending balance - ACL on off-balance sheet	$	2,344		$	213		$	326		$	142		$	208		$	—		$	264		$	3,497		$	91	$	3,588

	As of December 31, 2021
	Core Deposit Intangible Assets		Customer Relationships		Total
Gross carrying amount	$	50,059	$	71,167	$	121,226
Accumulated amortization		49,623		57,187		106,810
Net carrying amount	$	436	$	13,980	$	14,416

	For the Three Months Ended June 30, 2021
Derivatives in Cash Flow Hedging Relationships	Loss Recognized in OCI on Derivative			Loss Recognized in OCI Included Component			Loss Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	—		$	—		$	—	$	1,210		$	1,771		$	(561	)
Interest rate swaps		(3,422	)		(3,422	)		—		(333	)		(333	)		—
Total	$	(3,422	)	$	(3,422	)	$	—	$	877		$	1,438		$	(561	)

	For the Six Months Ended June 30, 2021
Derivatives in Cash Flow Hedging Relationships	Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	—	$	—	$	—	$	2,376		$	3,492		$	(1,116	)
Interest rate swaps		3,081		3,081		—		(657	)		(657	)		—
Total	$	3,081	$	3,081	$	—	$	1,719		$	2,835		$	(1,116	)

Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
January 1 - January 31, 2022		25,227	$	103.24		25,227		1,960,128
February 1 - February 28, 2022		185,459		98.78		185,459		1,774,669
March 1 - March 31, 2022		16,020		97.56		16,020		1,758,649
Total		226,706	$	99.19		226,706


3.1		Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 and filed with the Commission on May 9, 2006).

3.2		Bylaws, amended as of October 28, 2014 (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 and filed with the Commission on August 2, 2016).


31.1		CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act filed herewith.

31.2		CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act filed herewith.

32.1		CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act filed herewith.

32.2		CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act filed herewith.

101.INS		XBRL Instance Document – The instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document filed herewith.

101.CAL		Inline XBRL Taxonomy Extension Calculation Document filed herewith.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document filed herewith.

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101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document filed herewith.

104		The cover page of our Form 10-Q for the quarter ended ~~March 31,~~June 30, 2022, formatted in iXBRL.