Company: ASB
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000007789-25-000179
Chunk: 113

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 113
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14,297 (a) The entirety of gains (losses) recognized in OCI as well as the losses reclassified from accumulated other comprehensive income (loss) into interest income were included components in the assessment of hedge effectiveness.Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedge derivatives are reclassified to interest income as interest payments are made on the hedged variable interest rate assets. The Corporation estimates that $5.1 million will be reclassified as an increase to interest income over the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, or the addition of other hedges subsequent to September 30, 2025. The maximum length of time over which the Corporation is hedging its exposure to the variability in future cash flows is 27 months as of September 30, 2025.The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income:Consolidated Statements of Income Category of Gain / (Loss) Recognized in IncomeThree Months Ended Sep 30,Nine Months Ended Sep 30,(in thousands)2025202420252024Derivative instrumentsInterest rate-related and other instruments — customer and mirror, netCapital markets, net$(18)$(215)$(108)$(273)Interest rate-related instruments — MSRs hedgeMortgage banking, net131 3,363 1,290 (948)Foreign currency exchange forwardsCapital markets, net315 1,130 (261)1,736 Interest rate lock commitments (mortgage)Mortgage banking, net(792)55 803 383 Forward commitments (mortgage)Mortgage banking, net913 (390)(703)188 

Note 10 Balance Sheet Offsetting 

Interest Rate-Related Instruments and Foreign Exchange Forwards (“Interest and Foreign Exchange Agreements”)The Corporation is permitted to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the consolidated balance sheets when a legally enforceable master netting agreement exists. The Corporation has elected to net such balances where it has determined that the specified conditions are met.The Corporation uses master netting agreements to mitigate counterparty credit risk in these transactions, including derivative contracts. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to