Company: ASB
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000007789-25-000013
Chunk: 85

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-02-12
Form: 10-K
Item: Item 8
Chunk 85
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 commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded in other assets and accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 13. Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party.Other CommitmentsThe Corporation invests in qualified affordable housing projects, historic projects, new market projects, and opportunity zone funds for the purpose of community reinvestment and obtaining tax credits and other tax benefits. Return on the Corporation's investment in these projects and funds comes in the form of the tax credits and tax losses that pass through to the Corporation, and deferral or elimination of capital gain recognition for tax purposes. The aggregate carrying value of these investments at December 31, 2024, was $205 million, compared to $219 million at December 31, 2023, included in tax credit and other investments on the consolidated balance sheets. Under the proportional amortization method, the Corporation amortizes the initial cost of qualified, eligible investments in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to 

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the amortization of investments in qualified, eligible investments of $35 million, $34 million, and $34 million during the years ended December 31, 2024, 2023, and 2022, respectively. The Corporation's remaining investment in qualified, eligible investments accounted for under the proportional amortization method totaled $203 million at December 31, 2024 and $215 million at December 31, 2023. The Corporation’s unfunded equity contributions relating to investments in qualified affordable housing and historic projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled $30 million and $27 million at December 31, 2024 and 2023, respectively. Additionally, at December 31, 2024, the Corporation also invests in a private loan fund, recorded in equity securities on the consolidated balance sheets, which has a remaining unfunded equity contribution of $