Company: ASB
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000007789-25-000013
Chunk: 75

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-02-12
Form: 10-K
Item: Item 8
Chunk 75
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 related to capital loss carryovers. The changes in the valuation allowance were as follows:($ in thousands)20242023Valuation allowance for deferred tax assets, beginning of year$— $— (Increase) in current year(32,702)— Valuation allowance for deferred tax assets, end of year$(32,702)$— At December 31, 2024, the Corporation had state net operating loss carryforwards of $117 million (of which $2 million was acquired from various acquisitions) that will begin expiring in 2025. 

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The effective income tax rate differs from the statutory federal tax rate. The major reasons for this difference were as follows:202420232022Federal income tax rate at statutory rate21.0 %21.0 %21.0 %Increases (decreases) resulting from:Tax-exempt interest and dividends(10.6)%(7.4)%(3.4)%State income taxes (net of federal benefit)2.2 %0.3 %4.2 %Bank owned life insurance(2.1)%(1.1)%(0.5)%Tax effect of tax credits and benefits, net of related expenses(7.9)%(4.7)%(1.6)%Net tax (benefit) from stock-based compensation(0.2)%— %(0.2)%Net tax (benefit) of portfolio reallocation and legal entity rationalization plan(a)(25.7)%— %— %Changes in valuation allowance24.3 %— %— %FDIC premium4.8 %3.0 %0.7 %Other nondeductible expenses2.3 %— %— %Changes in unrecognized tax benefits0.4 %— %— %Prior year return to provision(0.5)%— %— %Other0.4 %0.1 %0.1 %Effective income tax rate8.4 %11.2 %20.3 %(a) Related to the previously announced strategic reallocation of the investment portfolio and adoption of a legal entity rationalization plan in the second quarter of 2024.Savings banks acquired by the Corporation in 1997 and 2004 qualified under provisions of the Internal Revenue Code that permitted them to deduct from taxable income an allowance for bad debts that differed from the provision for such losses charged to income