Associated Banc-Corp: Form 10-Q for the period ended Sep 30, 2026

Special Note Regarding Forward-Looking Statements

This report contains statements that may constitute forward-looking statements within the meaning of the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, such as statements other than historical facts contained or incorporated by reference into this report. These forward-looking statements include statements with respect to the Corporation’s financial condition, results of operations, plans, objectives, future performance and business, including statements preceded by, followed by or that include the words “believes,” “expects,” or “anticipates,” references to estimates or similar expressions. Future filings by the Corporation with the SEC, and future statements other than historical facts contained in written material, press releases and oral statements issued by, or on behalf of the Corporation may also constitute forward-looking statements.

All forward-looking statements contained in this report or which may be contained in future statements made for or on behalf of the Corporation are based upon information available at the time the statement is made and the Corporation assumes no obligation to update any forward-looking statements, except as required by federal securities law. Forward-looking statements are subject to significant risks and uncertainties, and the Corporation’s actual results may differ materially from the expected results discussed in such forward-looking statements. Factors that might cause actual results to differ from the results discussed in forward-looking statements include, but are not limited to, the risk factors in Item 1A, Risk Factors, in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, and as may be described from time to time in the Corporation’s subsequent SEC filings.

Overview

The following discussion and analysis is presented to assist in the understanding and evaluation of the Corporation’s financial condition and results of operations. It is intended to complement the unaudited consolidated financial statements, footnotes, and supplemental financial data appearing elsewhere in this Quarterly Report on Form 10-Q and should be read in conjunction therewith. Management continually evaluates strategic acquisition opportunities and various other strategic alternatives that could involve the sale or acquisition of branches or other assets, or the consolidation or creation of subsidiaries. Within the tables presented, certain columns and rows may not recalculate due to the use of rounded numbers for disclosure purposes.

Performance Summary

• Average loans of $34.5 billion increased $4.0 billion, or 13%, from the first nine months of 2025, driven primarily by the American National acquisition and the organic growth in commercial and business lending portfolio.
• Average deposits of $38.9 billion increased $4.3 billion, or 12%, from the first nine months of 2025, primarily due to the American National acquisition.
• Net interest income of $1.1 billion increased $163.3 million, or 18%, from the first nine months of 2025, and net interest margin was 3.14%, compared to 3.02% for the first nine months of 2025. These increases were driven by the acquisition of American National in the second quarter of 2026. Additionally, the increase in interest income reflected the continued shift in earning asset mix from lower-yielding residential mortgage loans to higher-yielding commercial and business lending. The decrease in interest expense was driven by lower market interest rates and a favorable shift in deposit mix away from higher-cost money market and brokered CD deposits toward lower-cost funding sources, including savings and other time deposits, and noninterest-bearing demand deposits. Net interest margin benefited from these factors, as reductions in funding costs more than offset the decline in earning asset yields resulting from the repricing of variable-rate assets in the lower interest rate environment.
• Provision for credit losses was $44.4 million compared to $47.0 million for the first nine months of 2025, driven by nominal credit movement coupled with general macroeconomic trends. In addition, expected credit losses associated with acquired seasoned loans were largely recognized through purchase accounting following the adoption of ASU 2025-08, reducing the need for incremental provision expense associated with the acquired balances.
• Noninterest income of $243.4 million increased $36.4 million, or 18%, from the first nine months of 2025. The increase was primarily driven by higher service charges and deposit account fees and card-based fees, reflecting, in part, the American National acquisition, higher wealth management fees resulting from increased trust and investment advisory revenue, increased capital markets revenue driven by elevated syndication fees and foreign exchange swap revenue, higher other asset gains due to valuation changes in deferred compensation plan assets whose impact is fully offset in personnel expense, and the absence of the nonrecurring loss on mortgage portfolio sale recognized in the first quarter of 2025 in connection with the completion of balance sheet repositioning announced in the fourth quarter of 2024.
• Noninterest expense of $751.4 million increased $115.2 million, or 18%, from the first nine months of 2025. The increase was primarily attributable to the American National acquisition, including recurring expenses such as personnel costs associated with new colleagues and amortization of CDI. The acquisition also resulted in nonrecurring expenses, including severance and retention bonuses impacting personnel expense, contract termination costs increasing technology expense, and transaction and integration-related legal and professional fees. In addition, technology expense increased due to higher subscription costs, increased equipment expense resulting from elevated small equipment purchases, and increased legal and professional expense due to information technology augmentation costs. These increases were offset by a gain on sale of an OREO property in the third quarter of 2026.

Table 1 Summary Results of Operations: Trends

(Dollars in thousands, except per share data)

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

(b) Based on period end common shares outstanding.

(c) This is a non-GAAP financial measure. See Table 19 Non-GAAP Measures for a reconciliation to GAAP financial measures.

(d) This ratio is annualized.

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Income Statement Analysis

Net Interest Income

Table 2 Net Interest Income Analysis

(Dollars in thousands)

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

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

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

Table 2 Net Interest Income Analysis

(Dollars in thousands)

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

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

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

Notable Contributions to the Change in Net Interest Income

• Fully tax-equivalent net interest income and net interest income increased $163.0 million and $163.3 million, respectively or 18%, as compared to the first nine months of 2025. The average yield on earning assets decreased 19 bp, while the cost of interest-bearing liabilities decreased 37 bp from the first nine months of 2025. The increase in net interest income was primarily driven by growth in average earning assets resulting from the American National acquisition in the second quarter of 2026. In addition, the continued shift in the asset mix away from lower-yielding residential mortgages toward higher-yielding commercial loans partially offset the impact of lower market rates on earning asset yields, while rates paid on interest-bearing liabilities decreased due to lower market rates and a favorable shift in deposit mix toward lower-cost products. As a result, reductions in funding costs more than offset the decline in earning asset yields. See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market Risk for a discussion of interest rate risk and market risk.
• Average earning assets increased $5.4 billion, or 14%, from the first nine months of 2025. Average loans increased $4.0 billion, or 13%, from the first nine months of 2025, primarily driven by loans acquired from American National as well as organic increases in commercial and industrial, auto finance, and real estate construction loans, partially offset by a decrease in residential mortgage loans as a result of the Corporation's focus on relationship-based lending and balance sheet remix. Average investments increased $1.4 billion, or 15%, from the first nine months of 2025 due to the American National acquisition.
• Average interest-bearing liabilities increased $4.2 billion, or 13%, compared to the first nine months of 2025. Average interest-bearing deposits increased $3.2 billion, or 11% from the first nine months of 2025. This was primarily driven by the acquisition of American National along with organic increases in other time deposits and savings, partially offset by a decrease in brokered CDs. Average total funding increased $1.0 billion, or 28%, from the first nine months of 2025, primarily driven by an increase in FHLB advances related to funding for continued loan growth. Average noninterest-bearing demand deposits increased $1.1 billion, or 20%, driven by deposits acquired from the American National acquisition and organic growth from the first nine months of 2025.

Provision for Credit Losses

The provision for credit losses is predominantly a function of the Corporation’s reserving methodology and judgments as to other qualitative and quantitative factors used to determine the appropriate level of the ACLL, which focuses on changes in the size and character of the loan portfolio, changes in levels of individually evaluated and other nonaccrual loans, historical losses and delinquencies in each portfolio category, the risk inherent in specific loans, concentrations of loans to specific borrowers or industries, existing economic conditions and economic forecasts, the fair value of underlying collateral, and other factors which could affect potential credit losses. See additional discussion under the sections titled Loans, Credit Risk, Nonperforming Assets, and Allowance for Credit Losses on Loans.

Noninterest Income

Table 3 Noninterest Income

(Dollars in thousands, except as noted)

N/M = Not meaningful

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

Notable Contributions to the Change in Noninterest Income

• Wealth management fees increased $6.8 million compared to the first nine months of 2025, primarily due to increased assets under management.
• Service charges and deposit account fees increased $6.9 million compared to the first nine months of 2025, due to organic increases in business demand deposit and overdraft account fees as well as additional income from American National deposit accounts acquired.
• Card-based fees increased $6.3 million compared to the first nine months of 2025, due to organic increases in interchange fee income as well as additional income from increased card-based activity as a result of the American National acquisition.
• Capital markets, net increased $3.8 million compared to the first nine months of 2025, primarily from increased syndication fees.
• Loss on mortgage portfolio sale decreased $7.0 million compared to the first nine months of 2025, due to the balance sheet repositioning completed during the first quarter of 2025.
• Asset gains, net increased $3.6 million compared to the first nine months of 2025, primarily due to valuation changes on deferred compensation plan assets whose impact is fully offset in personnel expense. The increase in asset gains, net was also driven by an increase in equity investment valuations, partially offset by losses on leases.

Noninterest Expense

Table 4 Noninterest Expense

(Dollars in thousands)

Notable Contributions to the Change in Noninterest Expense

• Personnel expense increased $63.5 million compared to the first nine months of 2025, primarily due to increased recurring costs associated with employees added through the American National acquisition. The increase also reflected nonrecurring severance costs and retention bonuses related to integration activities.
• Technology expense increased $23.1 million compared to the first nine months of 2025, driven by an increase in ongoing subscription costs as well as nonrecurring termination fees for subscriptions associated with the integration of American National.
• Business development and advertising increased $3.4 million compared to the first nine months of 2025, driven by marketing and advertising initiatives and nonrecurring advertising expenses associated with the American National acquisition.
• Equipment expense increased $3.1 million compared to the first nine months of 2025, driven by increased equipment and supplies purchased for newly acquired American National locations and employees.
• Legal and professional expense increased $15.2 million compared to the first nine months of 2025, primarily due to nonrecurring expenses related to the American National acquisition.
• Other intangible amortization increased $9.4 million compared to the first nine months of 2025, driven by additional amortization related to core deposit intangibles recognized as part of the American National acquisition.
• Other expense decreased $4.5 million compared to the first nine months of 2025, driven by gains on sale of an OREO property and decreased OREO writedowns. These were partially offset by increased card-based expenses due to increased activity as a result of the American National acquisition.

Income Taxes

The Corporation records income tax expense during interim periods based on the best estimate of the full year's effective tax rate as adjusted for discrete items, if any, taken into account in the relevant interim period. Each quarter, the Corporation updates its estimate of the annual effective tax rate and the effect of any change in the estimated rate is recorded on a cumulative basis. The Corporation recognized income tax expense of $112.3 million for the nine months ended September 30, 2026, compared to income tax expense of $77.4 million for the nine months ended September 30, 2025. The Corporation's effective tax rate from continuing operations was 22.37% and 18.64% for the nine months ended September 30, 2026, and 2025, respectively. The increase in income tax expense of $34.9 million and higher effective tax rate during the first nine months of 2026 as compared to the same period of 2025 were primarily due to the net impact of several discrete items from 2025 that resulted in the release of a portion of the valuation allowance, which did not reoccur in 2026. Additionally, the Corporation recognized higher net income before tax for the nine months ended September 30, 2026, which reduced the relative impact of any recurring favorable rate drivers.

Income tax expense recorded on the consolidated statements of income involves the interpretation and application of certain accounting pronouncements and federal and state tax laws and regulations.

The Corporation is subject to examination by various taxing authorities. Examination by taxing authorities may impact the amount of tax expense and/or the reserve for uncertainty in income taxes if their interpretations differ from those of management, based on their judgments about information available to them at the time of their examinations.

Balance Sheet Analysis

• At September 30, 2026, total assets were $51.4 billion, up $6.2 billion, or 14%, from December 31, 2025.
• Cash and due from banks were $644.5 million at September 30, 2026, up $69.8 million, or 12%, from December 31, 2025. Interest bearing deposits in other financial institutions were $982.9 million at September 30, 2026, down $161.3 million, or 14%, from December 31, 2025. See the Consolidated Statements of Cash Flows for detailed information on those fluctuations.
• Available for sale investment securities were $6.2 billion at September 30, 2026, up $801.3 million or 15%, from December 31, 2025. Changes were primarily driven by the acquisition, sale, and reinvestment of the proceeds of the investment securities from the American National acquisition. See Note 3 Business Combinations and Note 6 Investment Securities of the notes to consolidated financial statements for additional detail.
• Regulatory stocks of $304.3 million at September 30, 2026 were up $51.8 million, or 21%, from December 31, 2025 primarily due to increases in FHLB advances to fund loan growth, which required additional purchases of FHLB stock. Increases in FRB stock were also required due to the increase in capital used to fund the American National acquisition.
• Loans of $36.5 billion at September 30, 2026 were up $5.4 billion, or 17%, from December 31, 2025 primarily due to the American National acquisition and continued organic growth in the commercial and business lending portfolio. See Note 3 Business Combinations and Note 7 Loans of the notes to consolidated financial statements and Table 5 Period End Loan Composition below for additional detail.
• Premises and equipment of $447.1 million at September 30, 2026, up $65.5 million, or 17% from December 31, 2025, primarily due to assets acquired from the American National acquisition. Other intangible assets, net of $110.1 million at September 30, 2026, increased $87.2 million, or 382% from December 31, 2025, due to the additional CDI recognized as part of the American National acquisition. See Note 3 Business Combinations of the notes to consolidated financial statements for additional detail.
• At September 30, 2026, total liabilities were $45.9 billion, up $5.7 billion, or 14%, from December 31, 2025.
• Total deposits of $40.4 billion at September 30, 2026 were up $4.8 billion or 14%, from December 31, 2025. The increase was primarily due to deposits assumed from the American National acquisition as well as organic growth in the customer base. See Note 3 Business Combinations for additional detail.
• Federal funds purchased and securities sold under agreements to repurchase was $266.3 million at September 30, 2026, down $41.5 million, or 13%, from December 31, 2025. FHLB advances of $4.0 billion at September 30, 2026 were up $693.0 million, or 21%, from December 31, 2025. These changes were primarily driven by funding needs associated with loan growth and a mix shift from federal funds purchased and securities sold under agreements to repurchase to FHLB advances. See Note 9 Short and Long-Term Funding of the notes to consolidated financial statements for additional details.
• Accrued expenses and other liabilities of $676.9 million at September 30, 2026 were up $213.8 million or 46% from December 31, 2025 primarily due to changes within the customer back-to-back derivative portfolio as a result of interest rate increases.
• At September 30, 2026, the loans to deposits ratio was 90.44%, up from 87.65% at December 31, 2025.
• At September 30, 2026, total stockholders' equity was $5.5 billion, up $500.3 million, or 10%, from December 31, 2025 primarily due to the issuance of additional shares of the Corporation's common stock in connection with the acquisition of American National. This was partially offset by the repurchase of $100.0 million of the Corporation's common stock in association with an accelerated share repurchase agreement executed during the third quarter of 2026.

Loans

Table 5 Period End Loan Composition

(Dollars in thousands)

The Corporation has long-term guidelines relative to the proportion of Commercial and Business, CRE, and Consumer loans within the overall loan portfolio. Furthermore, certain sub-asset classes within the respective portfolios are further defined and dollar limitations are placed on these sub-portfolios. These guidelines and limits are reviewed quarterly and approved annually by the ERC. These guidelines and limits are designed to create balance and diversification within the loan portfolios.

The Corporation’s loan distribution and interest rate sensitivity as of September 30, 2026 are summarized in the following table:

Table 6 Loan Distribution and Interest Rate Sensitivity

(Dollars in thousands)

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

At September 30, 2026, $25.0 billion, or 68%, of the loans outstanding and $21.4 billion, or 87%, of the commercial loans outstanding were floating rate, adjustable rate, re-pricing within one year, or maturing within one year.

Credit Risk

An active credit risk management process is used for commercial loans to ensure that sound and consistent credit decisions are made. Credit risk is controlled by detailed underwriting procedures, comprehensive loan administration, and periodic review of borrowers’ outstanding loans and commitments. Borrower relationships are formally reviewed and graded on an ongoing basis for early identification of potential problems. Further analysis by customer, industry, and geographic location is performed to monitor trends, financial performance, and concentrations. See Note 7 Loans of the notes to consolidated financial statements for additional information on managing overall credit quality.

The loan portfolio is widely diversified by types of borrowers, industry groups, and market areas primarily within the Corporation's lending footprint. Significant loan concentrations are considered to exist when there are amounts loaned to numerous borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. At September 30, 2026, no significant concentrations existed in the Corporation’s portfolio in excess of 10% of total loan exposure.

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

Table 7 Largest Commercial and Industrial Industry Group Exposures, by NAICS Subsector

(Dollars in thousands)

(a) 72% of the total utilities exposure comes from renewable energy sources (wind, solar, hydroelectric, and geothermal).

(b) 64% of the total real estate exposure comes from REIT lines.

(c) 68% of credit intermediation and related activities exposure comes from mortgage warehouse lines.

The remaining commercial and industrial portfolio is spread over a diverse range of industries, none of which exceed 2% of total loan exposure.

The CRE-owner occupied portfolio is spread over a diverse range of industries, none of which exceed 2% of total loan exposure.

The credit risk related to commercial and business lending is largely influenced by general economic conditions and the resulting impact on a borrower’s operations or on the value of underlying collateral, if any.

Commercial real estate - investor: Commercial real estate - investor is comprised of loans secured by various non-owner occupied or investor income producing property types.

Table 8 Largest Commercial Real Estate - Investor Property Type Exposures

The remaining commercial real estate - investor portfolio is spread over various other property types, none of which exceed 2% of total loan exposure.

Credit risk is managed in a similar manner to commercial and business lending by employing sound underwriting guidelines, lending primarily to borrowers in local markets and businesses, periodically evaluating the underlying collateral, and formally reviewing the borrower’s financial soundness and relationship on an ongoing basis.

Real estate construction: Real estate construction loans are primarily short-term or interim loans that provide financing for the acquisition or development of commercial income properties, multi-family projects, or residential development, both single family and condominium. Real estate construction loans are made to developers and project managers who are generally well known to the Corporation and have prior successful project experience. The credit risk associated with real estate construction loans is generally confined to specific geographic areas but is also influenced by general economic conditions. The Corporation controls the credit risk on these types of loans by making loans in familiar markets to developers, reviewing the merits of individual projects, controlling loan structure, and monitoring project progress and construction advances.

Table 9 Largest Real Estate Construction Property Type Exposures

The remaining real estate construction portfolio is spread over various other property types, none of which exceed 2% of total loan exposure.

The Corporation’s current lending standards for CRE and real estate construction lending are determined by property type and specifically address many criteria, including: maximum loan amounts, maximum LTV, requirements for pre-leasing and/or presales, minimum borrower equity, and maximum loan-to-cost. Currently, the maximum standard for LTV is 80%, with lower limits established for certain higher risk types, such as raw land that has a 50% LTV maximum. Certain loans acquired through business combinations may not adhere to these underwriting standards. The Corporation’s LTV guidelines are in compliance with regulatory supervisory limits. In most cases, for real estate construction loans, the loan amounts include interest reserves, which are built into the loans and sized to fund loan payments through construction and lease up and/or sell out.

Residential mortgages: Residential mortgage loans are primarily first-lien home mortgages with a maximum loan-to-collateral value without credit enhancement (e.g. private mortgage insurance) of 80%. The residential mortgage portfolio is focused primarily in the Corporation's six-state branch footprint, with approximately 94% of the outstanding loan balances in the Corporation's branch footprint at September 30, 2026. The rates on adjustable rate mortgages adjust based upon the movement in the underlying index which is then added to a margin and rounded to the nearest 0.125%. That result is then subjected to any periodic caps to produce the borrower's interest rate for the coming term. Adjustable rate mortgages are typically offered with an initial fixed rate term of 5, 7 or 10 years.

The Corporation generally retains certain fixed-rate residential real estate mortgages in its loan portfolio, including retail and private banking jumbo mortgages and CRA-related mortgages. As part of management’s historical practice of originating and servicing residential mortgage loans, generally the Corporation’s 30-year, agency conforming, fixed-rate residential real estate mortgage loans have been sold in the secondary market with servicing rights retained. Subject to management’s analysis of the current interest rate environment, among other market factors, the Corporation may choose to retain mortgage loan production on its balance sheet.

The Corporation’s underwriting and risk-based pricing guidelines for residential mortgage loans include minimum borrower FICO score and maximum LTV of the property securing the loan. Residential mortgage products generally are underwritten using FHLMC and FNMA secondary marketing guidelines.

Home equity: Home equity consists of both home equity lines of credit and closed-end home equity loans. The Corporation’s credit risk monitoring guidelines for home equity are based on an ongoing review of loan delinquency status, as well as a quarterly review of FICO score deterioration and property devaluation. The Corporation does not routinely obtain appraisals on performing loans to update LTV ratios after origination; however, the Corporation monitors the local housing markets by reviewing the various home price indices and incorporates the impact of the changing market conditions in its ongoing credit monitoring process. For junior lien home equity loans, the Corporation is unable to track the performance of the first lien loan if it does not own or service the first lien loan. However, the Corporation obtains a refreshed FICO score on a quarterly basis and monitors this as part of its assessment of the home equity portfolio.

The Corporation’s underwriting and risk-based pricing guidelines for home equity lines of credit and loans consist of a combination of both borrower FICO score and the original cumulative LTV against the property securing the loan. Currently, the Corporation's policy sets the maximum acceptable LTV at 90%. Certain loans acquired through business combinations may not adhere to these underwriting standards. The Corporation's current home equity line of credit offering is priced based on floating rate indices and generally allows 10 years of interest-only payments followed by a 20-year amortization of the outstanding balance. The loans in the Corporation's portfolio generally have an original term of 20 years with principal and interest payments required.

Indirect Auto: The Corporation currently purchases retail sales contracts via a network of approved dealerships across 22 states throughout the Northeast, Mid-Atlantic, Midwest, and Great Plains regions of the United States. The dealerships finance the sale of automobiles and other recreational vehicles as the initial lender and then assign the contracts to the Corporation pursuant to dealer agreements. The Corporation’s underwriting and pricing guidelines are based on a dual risk grade derived from a combination of FICO auto score and proprietary internal custom score. Minimum grade and FICO score standards ensure the credit risk is appropriately managed to the Corporation’s risk appetite. Further, the grade influences loan-specific parameters such as vehicle age, term, LTV, loan amount, mileage, payment and debt service thresholds, and pricing. Maximum loan terms offered are 84 months on select grades with vehicle age, mileage, and other limitations in place to qualify. The program is designed to capture primarily prime and super prime contracts. Contracts for other recreational vehicles is a legacy business inherited from the acquisition of American National and is in runoff.

Other consumer: Other consumer consists of credit cards, revolving credit plans, and student loans. Credit risk for other consumer loans is influenced by general economic conditions, the characteristics of individual borrowers, and the nature of the loan collateral. Risks of loss are generally on smaller average balances per loan spread over many borrowers. Once charged off, there is usually less opportunity for recovery of these smaller consumer loans. Credit risk is primarily controlled by reviewing the creditworthiness of the borrowers, monitoring payment histories, and taking appropriate collateral and guarantee positions.

Nonperforming Assets

Management is committed to a proactive nonaccrual and problem loan identification philosophy. This philosophy is implemented through the ongoing monitoring and review of all pools of risk in the loan portfolio to ensure that problem loans are identified quickly and the risk of loss is minimized. Table 10 provides detailed information regarding NPAs, which include nonaccrual loans, OREO, and repossessed assets, and also includes information on accruing loans past due and restructured loans:

Table 10 Nonperforming Assets

(Dollars in thousands)

(a) Primarily closed branches and other bank operated real estate facilities, pending disposition.

(b) Excluding guaranteed student loans.

Nonaccrual loans: Nonaccrual loans are considered to be one indicator of potential future loan losses. See Note 7 Loans of the notes to consolidated financial statements for additional nonaccrual loan disclosures. See also sections Credit Risk and Allowance for Credit Losses on Loans.

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

Accruing loans past due 90 days or more: Loans past due 90 days or more but still accruing interest are classified as such where the underlying loans are both well-secured (the collateral value is sufficient to cover principal and accrued interest) and are in the process of collection.

Restructured loans: Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See also Note 7 Loans of the notes to consolidated financial statements for additional restructured loans disclosures.

Allowance for Credit Losses on Loans

Credit risks within the loan portfolio are inherently different for each loan type. Credit risk is controlled and monitored through the use of lending standards, a thorough review of potential borrowers, and ongoing review of loan payment performance. Active asset quality administration, including early problem loan identification and timely resolution of problems, aids in the management of credit risk and the minimization of loan losses. Credit risk management for each loan type is discussed in the section entitled Credit Risk. See Note 7 Loans of the notes to consolidated financial statements for additional disclosures on the ACLL.

To assess the appropriateness of the ACLL, the Corporation focuses on the evaluation of many factors, including but not limited to: evaluation of facts and issues related to specific loans, management’s ongoing review and grading of the loan portfolio, credit report refreshes, consideration of historical loan loss and delinquency experience on each portfolio category, trends in past due and nonaccrual loans, the risk characteristics of the various classifications of loan segments, changes in the size and character of the loan portfolio, concentrations of loans to specific borrowers or industries, existing economic conditions and economic forecasts, the fair value of underlying collateral, funding assumptions on lines, and other qualitative and quantitative factors which could affect potential credit losses. The forecast the Corporation used for September 30, 2026 was the Moody's baseline scenario from August 2026, which was reviewed against the September 2026 baseline scenario with no material updates made, over a two year reasonable and supportable period with straight-line reversion to historical losses over the second year of the period. Assessing these factors involves significant judgment. Because each of the criteria used is subject to change, the ACLL is not necessarily indicative of the trend of future credit losses on loans in any particular segment. Therefore, management considers the ACLL a critical accounting estimate, see section Critical Accounting Estimates in the Corporation's 2025 Annual Report on Form 10-K for additional information on the ACLL. See section Nonperforming Assets for a detailed discussion on asset quality. See also Note 7 Loans of the notes to consolidated financial statements for additional ACLL disclosures. Table 5 provides information on loan growth and period end loan composition, Table 10 provides additional information regarding NPAs, and Table 11 and Table 12 provide additional information regarding activity in the ACLL.

The loan segmentation used in calculating the ACLL at September 30, 2026 and December 31, 2025 was generally comparable. The methodology to calculate the ACLL consists of the following components: a valuation allowance estimate is established for commercial and consumer loans determined by the Corporation to be individually evaluated, using discounted cash flows, estimated fair value of underlying collateral, and/or other data available. Loans are segmented for criticized loan pools by loan type as well as for non-criticized loan pools by loan type, primarily based on risk rating rates after considering loan type, historical loss and delinquency experience, credit quality, and industry classifications. Loans that have been criticized are considered to have a higher risk of default than non-criticized loans, as circumstances were present to support the lower loan grade, warranting higher loss factors. Additionally, management allocates ACLL to absorb losses that may not be provided for by the other components due to qualitative factors evaluated by management, such as limitations within the credit risk grading process, known current economic or business conditions that may not yet show in trends, industry or other concentrations with current issues that impose higher inherent risks than are reflected in the loss factors, and other relevant considerations. The total allowance is available to absorb losses from any segment of the loan portfolio.

Table 11 Allowance for Credit Losses on Loans

(Dollars in thousands)

69

Table 12 Annualized Net (Charge Offs) Recoveries to Average Loans

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

• Total nonaccrual loans increased $83.0 million, or 83%, from December 31, 2025, and increased $77.3 million, or 73%, from September 30, 2025. The increase from December 31, 2025 was primarily driven by an organic increase in commercial and industrial, residential mortgage, and auto finance lending, partially offset by a decrease in home equity. Additionally, nonaccrual loans acquired from American National contributed to the increase. The increase from September 30, 2025 was primarily driven by organic increases in commercial and industrial, residential mortgage, CRE - investor, and auto finance lending, partially offset by a decrease in home equity. Additionally, nonaccrual loans acquired from American National contributed to the increase. See Note 7 Loans of the notes to consolidated financial statements and Table 10 for additional disclosures on the changes in asset quality.
• YTD net charge offs increased $11.4 million from September 30, 2025, primarily driven by net charge offs of loans acquired from American National. See Table 11 and Table 12 for additional information on the activity in the ACLL.

Management believes the level of ACLL to be appropriate at September 30, 2026.

Deposits and Customer Funding

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

Table 13 Period End Deposit and Customer Funding Composition

(Dollars in thousands)

(a) Includes repurchase agreements.

(b) This is a non-GAAP financial measure. See Table 19 Non-GAAP Measures for a reconciliation to GAAP financial measures.

• Total deposits, which are the Corporation's largest source of funds, increased $4.8 billion, or 14% from December 31, 2025, and increased $5.5 billion, or 16%, from September 30, 2025. The increases from December 31, 2025 and September 30, 2025, were driven by the American National acquisition as well as organic growth in the customer base causing increases in all deposit categories, except network transaction deposits and brokered CDs.
• Estimated uninsured and uncollateralized deposits, excluding intercompany deposits, were 27.3% of total deposits at September 30, 2026 compared to 26.5% at December 31, 2025, and 24.9% at September 30, 2025. The increase was primarily driven by an increase in uninsured balances in business deposit accounts.

Liquidity

The objective of liquidity risk management is to ensure that the Corporation has the ability to generate sufficient cash or cash equivalents in a timely and cost-effective manner to satisfy the cash flow requirements of depositors and borrowers and to meet its other commitments as they become due. The Corporation’s liquidity risk management process is designed to identify, measure, and manage the Corporation’s funding and liquidity risk to meet its daily funding needs in the ordinary course of business, as well as to address expected and unexpected changes in its funding requirements. The Corporation engages in various activities to manage its liquidity risk, including diversifying its funding sources, stress testing, and holding readily-marketable assets which can be used as a source of liquidity, if needed.

The Corporation performs dynamic scenario analysis in accordance with industry best practices. Measures have been established to ensure the Corporation has sufficient high quality short-term liquidity to meet cash flow requirements under stressed scenarios. In addition, the Corporation also reviews static measures such as deposit funding as a percent of total assets and liquid asset levels. Strong capital ratios, credit quality, and core earnings are also essential to maintaining cost effective access to wholesale funding markets. At September 30, 2026, the Corporation was in compliance with its internal liquidity objectives and had sufficient asset-based liquidity to meet its obligations even under a stressed scenario.

The Corporation maintains diverse and readily available liquidity sources, including:

• Lines of credit with the Federal Reserve Bank and FHLB, which require eligible loan and investment collateral to be pledged. Based on the amount of collateral pledged, the FHLB established a collateral value from which the Bank may draw advances, and issue letters of credit in favor of public fund depositors, against the collateral. As of September 30, 2026, the Bank had $5.7 billion available for future funding. The Federal Reserve Bank also establishes a collateral value of assets to support borrowings from the discount window. As of September 30, 2026, the Bank had $6.5 billion available for discount window borrowings.
• Issuances by the Parent Company; the Corporation maintains on file with the SEC a universal shelf registration statement, under which the Parent Company may offer the following securities, either separately or in units: debt securities, preferred stock, depositary shares, common stock, and warrants.
• Bank issuances; the Bank may also issue institutional CDs, network transaction deposits, and brokered CDs.

The following table presents secured and total available liquidity sources, estimated uninsured and uncollateralized deposits (excluding intercompany deposits), and coverage of estimated uninsured and uncollateralized deposits.

Table 14 Liquidity Sources and Uninsured Deposit Coverage Ratio

(Dollars in thousands)

(a) Estimated based on normal course of operations with indicated institution.

(b) Availability based on internal policy limitations. The Corporation includes outstanding deposits that have received a primary purpose exemption in the brokered deposit classification as they have similar funding characteristics and risk as brokered deposits.

(c) Estimated availability based on the Corporation's current internal funding considerations.

Based on contractual obligations and ongoing operations, the Corporation's sources of liquidity are sufficient to meet present and future liquidity needs. See Table 17 for information about the Corporation's contractual obligations and other commitments. See section Deposits and Customer Funding for information about uninsured deposits and concentrations.

Credit ratings impact the Corporation's ability to issue debt securities and the cost to borrow money. Adverse changes in credit ratings impact not only the ability to raise funds in the capital markets but also the cost of these funds. For additional information regarding risks related to adverse changes in our credit ratings, see Part I, Item 1A, Risk Factors in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.

For the nine months ended September 30, 2026, net cash provided by operating and financing activities was $672.2 million and $623.6 million, respectively, while investing activities used net cash of $1.4 billion, for a net decrease in cash and cash equivalents of $92.8 million since year-end 2025. At September 30, 2026, assets of $51.4 billion increased $6.2 billion, or 14%, from year-end 2025. On the funding side, deposits of $40.4 billion increased $4.8 billion, or 14% from year-end 2025, short-term funding decreased $41.5 million, or 13%, and FHLB advances increased $693.0 million or 21%.

For the nine months ended September 30, 2025, net cash provided by operating and financing activities was $397.6 million and $1.1 billion, respectively, while investing activities used net cash of $1.2 billion, for a net increase in cash and cash equivalents of $273.2 million since year-end 2024. At September 30, 2025, assets of $44.5 billion increased $1.4 billion, or 3%, from year-end 2024. On the funding side, deposits of $34.9 billion increased $233.4 million, or 1%, from year-end 2024, short-term funding decreased $70.7 million, or 15%, and FHLB advances increased $1.4 billion, or 74%, and senior and subordinated debt decreased $243.6 million, or 29%.

Quantitative and Qualitative Disclosures about Market Risk

Market risk and interest rate risk are managed centrally. Market risk is the potential for loss arising from adverse changes in the fair value of fixed-income securities, equity securities, other earning assets, and derivative financial instruments as a result of changes in interest rates or other factors. Interest rate risk is the potential for reduced net interest income resulting from adverse changes in the level of interest rates. As a financial institution that engages in transactions involving an array of financial products, the Corporation is exposed to both market risk and interest rate risk. In addition to market risk, interest rate risk is measured and managed through a number of methods. The Corporation uses financial modeling simulation techniques that measure the sensitivity of future earnings due to changing rate environments to measure interest rate risk.

Policies established by the Corporation’s ALCO and approved by the Board of Directors are intended to limit these risks. The Board has delegated day-to-day responsibility for managing market and interest rate risk to ALCO. The primary objectives of market risk management are to minimize any adverse effect that changes in market risk factors may have on net interest income and to offset the risk of price changes for certain assets recorded at fair value.

Interest Rate Risk

The primary goal of interest rate risk management is to control exposure to interest rate risk within policy limits approved by the Board of Directors. These limits and guidelines reflect the Corporation's risk appetite for interest rate risk over both short-term and long-term horizons.

The major sources of the Corporation's non-trading interest rate risk are timing differences in the maturity and re-pricing characteristics of assets and liabilities, changes in the shape of the yield curve, and the potential exercise of explicit or embedded options. We measure these risks and their impact by identifying and quantifying exposures through the use of sophisticated simulation and valuation models which are employed by management to understand interest rate sensitive EAR and MVE at risk. The Corporation’s interest rate risk profile is such that, generally, a higher yield curve adds to income while a lower yield curve has a negative impact on earnings. The Corporation's EAR profile is asset sensitive at September 30, 2026.

For further discussion of the Corporation's interest rate risk and corresponding key assumptions, see the Interest Rate Risk section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Corporation’s 2025 Annual Report on Form 10-K.

The sensitivity analysis included below is measured as a percentage change in EAR due to gradual moves in benchmark interest rates from a baseline scenario over 12 months. We evaluate the sensitivity using: 1) a dynamic forecast incorporating expected growth in the balance sheet, and 2) a static forecast where the current balance sheet is held constant.

While a gradual shift in interest rates was used in this analysis to provide an estimate of exposure under a probable scenario, an instantaneous shift in interest rates would have a more significant impact. No EAR breaches occurred during the first nine months of 2026.

Table 15 Estimated % Change in Rate Sensitive Earnings at Risk Over 12 Months

At September 30, 2026, the MVE profile indicates a decrease in net balance sheet value due to instantaneous upward changes in rates and an increase in net balance sheet value due to instantaneous downward changes in rates.

Table 16 Market Value of Equity Sensitivity

Since MVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in MVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (i.e., the current year). Further, MVE does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, and changes in product spreads that could mitigate the adverse impact of changes in interest rates.

The above EAR and MVE measures do not include all actions that management may undertake to manage this risk in response to anticipated changes in interest rates.

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

The following table summarizes significant contractual obligations and other commitments at September 30, 2026, at those amounts contractually due to the recipient, including any unamortized premiums or discounts, hedge basis adjustments, or other similar carrying value adjustments.

Table 17 Contractual Obligations and Other Commitments

(in thousands)

The Corporation also has obligations under its derivatives, lending-related commitments, and retirement plans as described in Note 10 Derivative and Hedging Activities, Note 12 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings, and Note 14 Retirement Plans of the notes to consolidated financial statements, respectively. Further discussion of the nature of federal funds purchased and securities sold under agreements to repurchase, FHLB advances, and senior and subordinated debt is included in Note 9 Short and Long-Term Funding of the notes to consolidated financial statements.

Capital

Management actively reviews capital strategies for the Corporation and each of its subsidiaries in light of perceived business risks, future growth opportunities, industry standards, and compliance with regulatory requirements. The assessment of overall capital adequacy depends on a variety of factors, including asset quality, liquidity, stability of earnings, changing competitive forces, economic conditions in markets served, and strength of management. At September 30, 2026, the capital ratios of the Corporation and its banking subsidiaries were in excess of regulatory minimum requirements. The Corporation’s capital ratios are summarized in the following table.

Table 18 Capital Ratios

(Dollars in thousands)

(a) The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards, for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions.

(b) The Corporation is not classified as an advanced approaches holding company as defined by the Federal Reserve. As such, the Corporation has elected to be subject to the AOCI-related adjustments when calculating CET1 capital which allows the Corporation to opt-out of the requirement to include most components of AOCI in CET1 capital.

(c) This is a non-GAAP financial measure. See Table 19 Non-GAAP Measures for a reconciliation to GAAP financial measures.

Compliance with regulatory minimum capital requirements is a tool used in assessing the Corporation's capital adequacy, but not determinative of how the Corporation would fare under extreme stress. Factors that may affect the adequacy of the Corporation's capital include the inherent limitations of fair value estimates and the assumptions thereof, the inherent limitations of the regulatory risk-weights assigned to various asset types, the inherent limitations of accounting classifications of certain investments and the effect on their measurement, external macroeconomic conditions and their effects on capital and the Corporation's ability to raise capital or refinance capital commitments, and the extent of steps taken by state or federal government authorities in periods of extreme stress.

For additional information regarding the potential for additional regulation and supervision, see Part I, Item 1A, Risk Factors in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025.

See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, for information on the shares repurchased during the third quarter of 2026.

Non-GAAP Measures

Table 19 Non-GAAP Measures

(Dollars in thousands)

(a) During the fourth quarter of 2025, the Corporation entered into a definitive agreement to acquire American National. The acquisition was completed on April 1, 2026. These costs, incurred in connection with the acquisition, represent nonrecurring costs.

(b) Announced initiatives include the loss on mortgage portfolio sale as a result of balance sheet repositioning that the Corporation announced in the fourth quarter of 2024.

Sequential Quarter Results

The Corporation reported net income of $146.6 million for the third quarter of 2026, compared to a net income of $123.6 million for the second quarter of 2026. Net income available to common equity was $143.7 million for the third quarter of 2026, or $0.77 and $0.76 for basic and diluted earnings per common share, respectively. Comparatively, the net income available to common equity for the second quarter of 2026 was $120.7 million, or $0.64 and $0.63 for basic and diluted earnings per common share, respectively.

Fully tax-equivalent net interest income for the third quarter of 2026 was $381.3 million, $7.2 million, or 2%, higher than the second quarter of 2026. The increase in net interest income was driven by growth in average loans and an improved interest rate spread aided by the favorable shifts in asset and deposit mix. The net interest margin in the third quarter of 2026 and second quarter of 2026 were 3.20% and 3.17%, respectively.

Average earning assets increased $215.9 million to $47.5 billion in the third quarter of 2026. Driven primarily by growth in commercial and industrial and real estate construction offset by decreases in CRE-owner occupied and residential mortgage, average loans increased $326.8 million, or 1%. Average investments decreased $110.9 million, or 1% as portfolio runoff exceeded reinvestment activity. On the funding side, average total interest-bearing deposits increased $274.6 million, or 1%, primarily driven by growth in interest-bearing demand and savings offset by a reduction in brokered CDs. Due to decreases in FHLB advances and federal funds purchased as growth in lower-cost funding sources, including noninterest-bearing demand deposits, reduced our reliance on wholesale funding sources, average other funding decreased $311.2 million, or 6%.

The provision for credit losses was $14.0 million for the third quarter of 2026 and $19.4 million for the second quarter of 2026. This was due to a decrease in our allowance for unfunded commitments, nominal credit movement, and general macroeconomic trends. See discussion under sections: Provision for Credit Losses, Nonperforming Assets, and Allowance for Credit Losses on Loans.

Noninterest income for the third quarter of 2026 was $87.1 million, up $6.7 million, or 8% from the second quarter of 2026. This is due to an increase in capital markets, net due to higher syndication fee revenue. Additionally, there were increased earnings from our private equity investments in the third quarter of 2026.

Noninterest expense for the third quarter of 2026 was $260.3 million, down $11.5 million, or 4% from the second quarter of 2026. This was primarily driven by lower expenses related to the American National acquisition and a gain on sale of an OREO asset in the third quarter of 2026.

For the third quarter of 2026, the Corporation recognized income tax expense of $43.4 million, compared to an income tax expense of $35.6 million for the second quarter of 2026. The increase in expense from the second quarter of 2026 was primarily attributable to an increase in net income.

Comparable Quarter Results

The Corporation reported net income of $146.6 million for the third quarter of 2026, compared to net income of $124.7 million for the third quarter of 2025. Net income available to common equity was $143.7 million for the third quarter of 2026, or $0.77 and $0.76 for basic and diluted earnings per common share, respectively. Comparatively, net income available to common equity for the third quarter of 2025 was $121.9 million, or $0.73 for both basic and diluted earnings per common share.

Fully tax-equivalent net interest income for the third quarter of 2026 was $381.3 million, $71.9 million, or 23%, higher than the third quarter of 2025. The increase in net interest income was primarily driven by growth from the American National acquisition, along with an improved interest rate spread driven by a reduction in funding costs that outpaced the decline in earning asset yields in the lower interest rate environment. The net interest margin in the third quarter of 2026 and third quarter of 2025 was 3.20% and 3.04%, respectively.

Average earning assets increased $6.9 billion, or 17%, to $47.5 billion in the third quarter of 2026. Average loans increased $5.4 billion, or 18% and average investments increased $1.5 billion, or 15%, primarily due to the American National transaction. In addition to the acquisition, average loans benefited from continued organic growth in commercial and industrial lending and real estate construction. On the funding side, average interest-bearing deposits increased $4.7 billion, or 16%, from the third quarter of 2025, primarily due to the American National acquisition. Interest-bearing deposits also reflected organic growth across deposit categories, partially offset by decreases in network transaction deposits and brokered CDs. Average other funding increased $470.1 million, or 12%, primarily due to increases in FHLB advances and federal funds purchased used to support loan growth.

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The provision for credit losses was $14.0 million for the third quarter of 2026, compared to a provision of $16.0 million for the third quarter of 2025. This was primarily due to a decrease in the allowance for unfunded commitments. See discussion under sections: Provision for Credit Losses, Nonperforming Assets, and Allowance for Credit Losses on Loans.

Noninterest income for the third quarter of 2026 was $87.1 million, up $5.9 million, or 7%, compared to the third quarter of 2025. This is primarily due to an increase in income from service charges and deposit account fees and card-based fees driven substantially by the American National acquisition.

Noninterest expense for the third quarter of 2026 was $260.3 million, up $44.1 million, or 20%, from the third quarter of 2025. The increase was primarily attributable to the acquisition of American National, including higher personnel costs resulting from increased salaries, health care costs and incentive compensation, increased technology expense primarily related to contract termination costs and subscription fees, higher occupancy expense associated with building maintenance and repairs, and increased amortization expense of the additional CDI recognized as part of the acquisition. These increases were partially offset by a lower other noninterest expense, primarily due to a gain on the sale of an OREO property recognized in the third quarter of 2026.

The Corporation recognized income tax expense of $43.4 million for the third quarter of 2026, compared to income tax expense of $29.6 million for the third quarter of 2025. The increase was primarily due to the increase in net income in the third quarter of 2026 as compared to the third quarter of 2025 reducing the related impact of the Corporation's favorable rate drivers.

Segment Review

The reportable segments are Corporate and Commercial Specialty; Community, Consumer and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments was compiled utilizing the accounting policies described in the Corporation’s 2025 Annual Report on Form 10-K and Note 15 Segment Reporting of the notes to consolidated financial statements.

Table 20 Selected Segment Financial Data

(Dollars in thousands)

N/M = Not meaningful

Notable Changes in Segment Financial Data

Corporate and Commercial Specialty

• Total revenue and net income increased $48.6 million and $41.8 million respectively from the nine months ended September 30, 2025, attributable to organic growth in commercial and business lending as well as the inclusion of operating results from the recent acquisition of American National.
• Average earning assets and average loans increased $2.9 billion compared to the nine months ended September 30, 2025, primarily driven by the acquisition of American National and continued organic growth in commercial and industrial lending.
• Average deposits increased $1.2 billion from the nine months ended September 30, 2025 due to increases in all major deposit types primarily through the acquisition of American National.

Community, Consumer, and Business

• Average earning assets and average loans both increased by $1.2 billion from the nine months ended September 30, 2025, driven by the acquisition of American National loans with the majority being auto finance loans.
• Average deposits increased $2.6 billion from the nine months ended September 30, 2025, driven by increases in all deposit types through the acquisition of American National and organic growth across all deposit categories excluding brokered CDs and network transaction deposits.

Risk Management and Shared Services

• Total net revenue increased $97.5 million from the nine months ended September 30, 2025, due to an increase in direct interest income due to the increased AFS securities acquired from American National and additional FTP expense being allocated to the other segments based on their related funding mixes.
• Average earning assets increased $1.4 billion from the nine months ended September 30, 2025, due to an increase to the Corporation's investment portfolio following the American National acquisition.

Critical Accounting Estimates

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. The determination of the ACLL is particularly susceptible to significant change. A discussion of these estimates can be found in the Critical Accounting Estimates section in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Corporation’s 2025 Annual Report on Form 10-K. There have been no changes in the Corporation's application of critical accounting estimates since December 31, 2025.

Recent Developments

On October 27, 2026, the Corporation’s Board of Directors declared a regular quarterly cash dividend of $0.25 per common share, payable on December 15, 2026, to shareholders of record at the close of business on December 1, 2026.

The Board of Directors also declared a regular quarterly cash dividend of $0.3671875 per depositary share on Associated's 5.875% Perpetual Preferred Stock, Series E, payable on December 15, 2026 to the shareholders of record at the close of business on December 1, 2026.

The Board of Directors also declared a regular quarterly cash dividend of $0.3515625 per depositary share on Associated's 5.625% Perpetual Preferred Stock, Series F, payable on December 15, 2026 to the shareholders of record at the close of business on December 1, 2026.

Information required by this item is set forth in Item 2 under the captions Quantitative and Qualitative Disclosures about Market Risk and Interest Rate Risk.

The Corporation maintains disclosure controls and procedures as required under Rule 13a-15 promulgated under the Securities Exchange Act that are designed to ensure that information required to be disclosed in the Corporation's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Corporation’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of September 30, 2026, the Corporation’s management carried out an evaluation, under the supervision and with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures. Based on the foregoing, its Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective as of September 30, 2026.

On April 1, 2026, the Corporation completed its acquisition of American National. The Corporation is in the process of integrating the acquired operations, business processes and systems into its overall internal control environment and has begun to extend its oversight and monitoring activities to include the acquired operations. Management's evaluation of internal control over financial reporting as of September 30, 2026 did not include an assessment of the internal control over financial reporting of American National. The Corporation continues evaluating and integrating American National into the Corporation's control environment in connection with the conversion of systems and operations in the fourth quarter of 2026.

Other than the integration activities associated with the American National acquisition, no changes were made to the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.