Associated Banc-p(ASB) - 2024 Q4 - Annual Report

Capital Requirements and Regulatory Compliance - The Bank continues to exceed all capital requirements necessary to be deemed "well-capitalized" for regulatory purposes[76] - As of December 31, 2024, the Bank satisfied the capital requirements necessary to be deemed "well-capitalized"[85] - The Corporation's capital ratios were in excess of regulatory minimum requirements as of December 31, 2024[451] - CET1 capital increased to $3,396,836 thousand in 2024 from$3,074,938 thousand in 2023, reflecting a growth of 10.5%[454] - Total capital rose to $4,282,597 thousand in 2024, up from$3,997,205 thousand in 2023, marking a 7.2% increase[454] - CET1 capital ratio improved to 10.01% in 2024 compared to 9.39% in 2023, indicating a stronger capital position[454] Deposits and Funding - The estimated level of uninsured deposits was $15.5 billion as of December 31, 2024[89] - Total deposits rose to$34.6 billion, up $1.2 billion, or 4$832 million, or 29%, and savings by $298 million, or 6$5.78 billion, representing 17% of total deposits, down from 18% in 2023[417] - Total AFS securities amounted to $4.61 billion with a weighted average yield of 5.31$3.74 billion with a weighted average yield of 2.86%[415] - The corporation had $7.1 billion available for future funding from lines of credit with the Federal Reserve Bank and FHLB as of December 31, 2024[425] Loan Performance and Credit Quality - Total loans reached$29.8 billion, an increase of $552 million, or 2$924 million, or 9%, rise in commercial and business lending and a $554 million, or 25$144,164,000, a decrease from $160,421,000 in 2023, reflecting a reduction of approximately 10$76.415 million in 2024, up from $58.768 million in 2023, indicating a significant increase in credit losses[391] Income and Expenses - Fully tax-equivalent net interest income increased by$3 million, while net interest income rose by $8 million, or 1$(9,407) thousand in 2024, a decline of $72,589 thousand from 2023[344] - Personnel costs increased by$19,601 thousand in 2024, reflecting the Corporation's ongoing growth strategy[347] - Total noninterest expense increased slightly by $4,715 thousand in 2024, totaling$818,397 thousand, with notable increases in personnel and technology expenses[347] Risk Management and Compliance - The Corporation's Environmental Risk Management Policy aims to integrate environmental sustainability into its risk management processes[129] - The proposed rule by FinCEN aims to strengthen AML/CFT programs, requiring periodic risk assessments and independent testing[114] - The company must notify regulators of cybersecurity incidents within 36 hours as per new federal banking agency rules[105] - The Corporation's credit risk management includes detailed underwriting procedures and ongoing borrower reviews to mitigate potential risks[361] Market and Economic Conditions - The Economic Growth Act raised the asset threshold for stress testing requirements from $10 billion to$250 billion[78] - The Dodd-Frank Act authorized a permanent increase in deposit insurance to $250,000 per depositor, per IDI[86] - The SEC finalized climate-related disclosure rules in March 2024, although these rules are currently stayed pending litigation[128] Financial Performance Metrics - Adjusted net income available to common equity was$118,253 thousand in 2024, down from $178,064 thousand in 2023, a decrease of 33.6%[457] - Return on average equity decreased to 2.86% in 2024 from 4.45% in 2023, reflecting challenges in profitability[457] - The efficiency ratio as defined by the Federal Reserve was 69.58% in 2024, slightly improved from 69.70% in 2023[457] - Tangible common equity to tangible assets ratio increased to 7.82% in 2024 from 7.11% in 2023, showing enhanced capital efficiency[457]