Company: ASB
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000007789-25-000179
Chunk: 100

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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$48 Total loans modified$— $— $48 The following table provides the amortized cost of loan modifications by loan portfolio and type of concession that were modified in the previous twelve months had a payment default during the nine months ended September 30, 2024:Amortized Cost of Loan Modifications that Subsequently Defaulted(in thousands)Interest Rate ConcessionTerm ExtensionCombination Interest Rate Concession and Term ExtensionAuto finance$8 $— $— Home equity— — 132 Total loans modified$8 $— $132 The nature and extent of the impairment of modified loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the ACLL.Allowance for Credit Losses on LoansThe ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The forecast the Corporation used for September 30, 2025 was the Moody's baseline scenario from August 2025, which was reviewed against the September 2025 baseline scenario with no material updates made, over a two year reasonable and supportable period with straight-line reversion to the historical losses over the second year of the period. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 11 for additional information on the change in the allowance for unfunded commitments. 

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The following table presents a summary of the changes in the ACLL by portfolio segment for the nine months ended September 30, 2025:(in thousands)Dec 31, 2024Charge offsRecoveriesNet (Charge offs) RecoveriesProvision for Credit LossesSep 30, 2025ACLL / LoansAllowance for loan lossesCommercial and industrial$136,596 $(12,286)$4,504 $(7,782)$32,261 $161,075 Commercial real estate — owner occupied9,417 — — —