Company: ASB
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000007789-25-000013
Chunk: 58

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-02-12
Form: 10-K
Item: Item 8
Chunk 58
---
. See Note 1 for the Corporation’s accounting policy for MSRs. See Note 15 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 17 which further discusses fair value measurement relative to the MSRs asset.A summary of changes in the balance of the MSRs asset under the fair value measurement method is as follows: ($ in thousands)20242023Mortgage servicing rightsMortgage servicing rights at beginning of period$84,390 $77,351 Additions6,707 3,564 Decay(8,060)(7,185)Valuation:Change in fair value model assumptions— 8,881 Changes in fair value of asset4,646 1,778 Mortgage servicing rights at end of period$87,683 $84,390 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)(a)$6,285,018 $7,364,492 Mortgage servicing rights to servicing portfolio(a)1.40 %1.15 %(a) During the fourth quarter of 2023, the Corporation transferred $969 million of residential mortgages into held for sale and subsequently sold them for $844 million. After sale, the servicing was retained for a short period until full servicing was transferred to the purchaser in January 2024. 

112

The projections of amortization expense for CDIs and decay for MSRs are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2024. The actual expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future yearly amortization expense for CDIs and decay for MSRs:($ in thousands)Core Deposit IntangiblesMortgage Servicing Rights2025$8,811 $9,767 20268,811 11,230 20278,811 11,602 20283,485 10,945 20291,681 9,767 Beyond 202961 34,373 Total estimated amortization expense and MSRs decay(a)$31,660 $87,683 

(a) Represents the decrease in value due to passage of time, including the impact from both