Company: ASB
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000007789-25-000013
Chunk: 271

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-02-12
Form: 10-K
Item: Item 7
Chunk 271
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 by increased allocated indirect expenses. 

•Average earning assets and average loan balances decreased $220 million and $222 million, respectively, from the year ended December 31, 2023, primarily driven by the sale of residential mortgages as part of the balance sheet repositioning announced in the fourth quarter of 2024 which closed in January 2025, partially offset by an increase in auto finance loans.

•Average deposit balances increased $530 million from the year ended December 31, 2023, largely driven by increases in time and savings deposits, partially offset by decreases in noninterest-bearing demand and money market deposits.

Risk Management and Shared Services

•Revenue decreased $146 million from the year ended December 31, 2023, primarily due to nonrecurring investment losses on the announced balance sheet repositioning during the fourth quarter of 2024 and lower interest income resulting from growth in higher cost funding sources. 

•Noninterest expense decreased $20 million from the year ended December 31, 2023, driven by a $29 million decrease in FDIC expense due to the nonrecurring FDIC special assessment recognized in 2023, offset by an increase in personnel expense and nonrecurring FHLB prepayment penalties which were part of the balance sheet repositioning announced in the fourth quarter of 2024.

•Income tax benefit increased $23 million from the year ended December 31, 2023, primarily due to the strategic reallocation of the investment portfolio announced in the second quarter of 2024. 

•Average earning assets increased $381 million from the year ended December 31, 2023, primarily due to an increase in AFS investment securities. 

•Average deposit balances increased $1.9 billion from the year ended December 31, 2023, mainly due to increased brokered CDs as we paid down other higher interest sources of funding like FHLB advances.

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.

The consolidated financial statements of the Corporation are prepared in conformity with U.S. GAAP and follow general practices within the industries in which it operates. This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These