ASSOCIATED BANC-CORPASB
ASSOCIATED BANC-CORP Debt Disclosure
The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), and long-term funding (funding with original contractual maturities greater than one year):
| (in thousands) | December 31, 2025 | December 31, 2024 | ||||||
| Short-term funding | ||||||||
| Federal funds purchased | $ | 260,070 | $ | 370,325 | ||||
| Securities sold under agreements to repurchase | 47,794 | 100,044 | ||||||
| Federal funds purchased and securities sold under agreements to repurchase | $ | 307,864 | $ | 470,369 | ||||
| Long-term funding | ||||||||
| Corporation senior notes, at par | $ | 300,000 | $ | 300,000 | ||||
| Corporation subordinated notes, at par | 300,000 | 550,000 | ||||||
| Discount and capitalized costs | (7,484) | (8,664) | ||||||
Subordinated debt fair value hedge(a) | 1,760 | (3,996) | ||||||
| Finance leases | — | 295 | ||||||
| Total long-term funding | $ | 594,276 | $ | 837,635 | ||||
Total short and long-term funding, excluding FHLB advances | $ | 902,140 | $ | 1,308,004 | ||||
| FHLB advances | ||||||||
| Short-term FHLB advances | $ | 2,855,250 | $ | 1,250,000 | ||||
| Long-term FHLB advances | 414,122 | 611,551 | ||||||
FHLB advances fair value hedge(a) | (1,278) | (7,744) | ||||||
| Total FHLB advances | $ | 3,268,094 | $ | 1,853,807 | ||||
Total short and long-term funding | $ | 4,170,234 | $ | 3,161,811 | ||||
(a) For additional information on the fair value hedges, see Note 13.
Securities Sold Under Agreements to Repurchase
The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities).
The Corporation utilizes repurchase agreements to facilitate the needs of its customers. The fair value of securities pledged to secure repurchase agreements may decline. At December 31, 2025, the Corporation had pledged securities valued at 283% of the gross outstanding balance of repurchase agreements to manage this risk.
The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets is presented in the following table:
| Overnight and Continuous | ||||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | ||||||
| Repurchase agreements | ||||||||
Agency mortgage-related securities | $ | 47,794 | $ | 100,044 | ||||
Long-Term Funding
Senior Notes
In August 2024, the Corporation issued $300.0 million in aggregate principal amount of 6.455% Fixed Rate / Floating Rate Senior Notes due August 29, 2030. During the period from, and including, August 29, 2024, to, but excluding, August 29, 2029, the senior notes will have a fixed coupon interest rate of 6.455% per annum, payable semi-annually in arrears. During the period from, and including, August 29, 2029, to, but excluding, the maturity date, the senior notes will have a floating rate per annum equal to Compounded SOFR, as defined in the Global Note issued in connection with the senior notes, plus 3.030%, payable quarterly in arrears. Prior to August 29, 2029, the Corporation may, at its option, redeem the senior notes, in whole or in part, at any time and from time to time, by paying the redemption price, as defined in the Global Note issued in connection with the senior notes, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. On August 29, 2029, the Corporation may at its option, redeem the senior notes, in whole, but not in part, by paying the aggregate principal amount of the notes to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. At any time and from time to time on or after July 30, 2030 (30 days prior to the maturity date), the Corporation may, at its option, redeem the senior notes in whole or in part by paying the aggregate principal amount of the senior notes to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. The senior notes were issued at a discount.
Subordinated Notes
In February 2023, the Corporation issued $300.0 million of 10-year subordinated notes, due March 1, 2033 and redeemable in whole or in part at the Corporation's option (i) on the reset date of March 1, 2028 and any interest payment date thereafter, (ii) at any time on or after the three month period prior to the maturity date, and (iii) upon the occurrence of a Regulatory Capital Treatment Event, as defined in the Global Note issued in connection with the subordinated notes. The subordinated notes have a fixed coupon interest rate of 6.625% until the reset date, after which the rate will be equal to the Five-Year U.S. Treasury Rate as of the reset date plus 2.812% per annum. The notes were issued at a discount.
In January 2025, $250.0 million of 10-year subordinated notes issued in November 2014 by the Corporation matured and were repaid.
FHLB Advances
Under agreements with the FHLB of Chicago, FHLB advances are secured by pledging qualifying collateral of the subsidiary bank (such as residential mortgage loans, residential mortgage loans held for sale, home equity loans, CRE loans, and investment securities). At December 31, 2025, the Corporation had $11.4 billion of total collateral capacity, primarily supported by pledged consumer and CRE loans and investment securities. The FHLB advances had maturity or call dates ranging from 2026 through 2031 and had a weighted average interest rate of 3.77% as of December 31, 2025. The Corporation prepaid $600.0 million in long-term FHLB advances during the fourth quarter of 2024, incurring a prepayment fee of $14.0 million.
The table below summarizes the expected maturities of the Corporation’s long-term funding at December 31, 2025:
| ($ in thousands) | Long Term Funding | ||||
| Year | |||||
| 2026 | $ | 204,283 | |||
| 2027 | 2,244 | ||||
| 2028 | 201,366 | ||||
| 2029 | 3,235 | ||||
| 2030 | 299,560 | ||||
| Beyond 2030 | 296,432 | ||||
| Total long-term funding | $ | 1,007,120 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 8, 2022 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.