Company: ASB
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000007789-25-000116
Chunk: 102

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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Total loans modified$6,427 $635 $702 

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The following table depicts the performance of loans that have been modified in the twelve months ended June 30, 2024:Payment Status (Amortized Cost Basis)(in thousands)Current30-89 Days Past Due90+ Days Past DueCommercial and industrial$410 $— $— Residential mortgage902 24 55 Auto finance107 41 — Home equity139 — — Other consumer1,615 — — Total loans modified$3,173 $65 $55 

None of the loans modified in the previous twelve months subsequently had a payment default during the six months ended June 30, 2025. 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 six months ended June 30, 2024:Amortized Cost of Loan Modifications that Subsequently Defaulted(in thousands)Interest Rate ConcessionTerm ExtensionCombination Interest Rate Concession and Term ExtensionAuto finance$6 $— $— Total loans modified$6 $— $— 

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 Loans

The 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 June 30, 2025 was the Moody's baseline scenario from May 2025, which was reviewed against the June 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