ASSOCIATED BANC-CORPASB
ASSOCIATED BANC-CORP Segments Disclosure
Segment Reporting
The Corporation is managed through operating segments based on our internal structure and management process, which is how we assess performance and allocate resources to the segments. Certain operating segments have been aggregated into our three reportable segments where the nature of the products and services, the type of customer, and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. A description of the products and services and the related customers for each reportable segment is as follows:
Corporate and Commercial Specialty: The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions by providing lending and deposit solutions as well as the support to deliver, fund, and manage such banking solutions. Within this segment we provide the following products and services: (1) lending solutions, such as commercial loans and lines of credit, CRE financing, construction loans, letters of credit, leasing, ABL & equipment finance, and, for our larger clients, loan syndications; (2) deposit and cash management solutions such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and (3) specialized financial services such as interest rate risk management, and foreign exchange solutions.
Community, Consumer and Business: The Community, Consumer and Business segment serves individuals and businesses by providing lending and deposit solutions and a variety of investment, fiduciary, and retirement planning products and services. Within this segment we provide the following products and services: (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance loans, business loans, and
business lines of credit; (2) deposit and transactional solutions such as checking, credit and debit cards, online banking and bill pay, and money transfer services; (3) fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management; and (4) investable funds solutions such as savings; money market deposit accounts; IRA accounts; CDs; fixed and variable annuities; full-service, discount and online investment brokerage; investment advisory services; and trust and investment management accounts.
Risk Management and Shared Services: The Risk Management and Shared Services segment includes key shared operational functions and also includes residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long-term credit charge mismatches).
Effective beginning the fourth quarter of 2024, the Corporation made the change to move the private wealth operating segment from the Corporate and Commercial Specialty segment to the Community, Consumer and Business segment given its continued alignment with the products, services, and customers of that segment. This impacted the composition of the reportable segments and the Corporation has recast the impacted items of reportable segment information for the earlier presented periods.
The financial information of the Corporation’s segments disclosed below has been compiled utilizing the accounting policies described in Note 1, with certain exceptions based on internal management accounting policies. The significant exceptions are as follows:
The Corporation allocates certain net interest income, the provision for credit losses, certain noninterest expenses, and income taxes to each operating segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed. There were no significant changes in the current year to the methods for allocations to the segments from the prior periods.
The Corporation allocates certain net interest income using an internal FTP methodology that charges users of funds (assets, primarily loans) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment, and/or re-pricing characteristics of the assets and liabilities. This allocation is reflected as net intersegment interest income (expense) in the accompanying tables.
The provision for credit losses is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an ACLL model using methodologies described in Note 1.
The net effect of the above allocations is recorded within the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's consolidated financial information.
Indirect expenses incurred by certain centralized support areas (including facilities, information technology services and applications, management expenses, and FDIC expense) are allocated to segments based on actual usage (for example, volume measurements or FTEs) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including, when applicable, amortization of CDIs and other intangible assets associated with acquisitions, acquisition-related costs, and asset gains on disposed business units) are generally not allocated and remain in the Risk Management and Shared Services segment. This allocation is reflected as allocated indirect expense in the accompanying tables.
Income tax expense (benefit) is allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses.
Financial information about the Corporation’s segments is presented below:
| As of and for the Year Ended December 31, 2025 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services(a) | Consolidated Corporation | ||||||||||
| Net segment interest income (expense) | $ | 960,032 | $ | 266,645 | $ | (25,532) | $ | 1,201,145 | ||||||
| Net intersegment interest (expense) income | (400,918) | 538,345 | (137,427) | — | ||||||||||
| Net interest income (expense) | 559,114 | 804,990 | (162,959) | 1,201,145 | ||||||||||
| Noninterest income | 61,925 | 209,451 | 15,024 | 286,400 | ||||||||||
| Total income (expense) before provision | 621,039 | 1,014,441 | (147,935) | 1,487,545 | ||||||||||
| Provision for credit losses | 80,808 | 25,790 | (52,602) | 53,996 | ||||||||||
| Total income (expense) after provision | 540,231 | 988,651 | (95,333) | 1,433,549 | ||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | 84,455 | 238,367 | 198,901 | 521,723 | ||||||||||
Technology(b) | 3,179 | 52,394 | 55,304 | 110,877 | ||||||||||
Occupancy(b) | 81 | 109 | 54,821 | 55,011 | ||||||||||
| Business development and advertising | 4,467 | 3,609 | 23,538 | 31,614 | ||||||||||
Equipment(b) | 1 | 5,118 | 15,158 | 20,277 | ||||||||||
| Legal and professional | 1,015 | 2,347 | 20,572 | 23,934 | ||||||||||
| Loan and foreclosure costs | 1,603 | 4,690 | 1,971 | 8,264 | ||||||||||
| FDIC assessment | — | — | 36,713 | 36,713 | ||||||||||
| Other intangible amortization | — | — | 8,811 | 8,811 | ||||||||||
| Other noninterest expense | 3,397 | 33,414 | 1,604 | 38,415 | ||||||||||
| Allocated indirect expense (income) | 87,692 | 211,386 | (299,078) | — | ||||||||||
| Total noninterest expense | 185,890 | 551,434 | 118,315 | 855,639 | ||||||||||
| Net income (loss) before income taxes | 354,341 | 437,217 | (213,648) | 577,910 | ||||||||||
| Income tax expense (benefit) | 68,165 | 91,816 | (56,848) | 103,133 | ||||||||||
| Net income (loss) | $ | 286,176 | $ | 345,401 | $ | (156,800) | $ | 474,777 | ||||||
| Loans | $ | 18,129,783 | $ | 12,618,662 | $ | 415,169 | $ | 31,163,614 | ||||||
| Allocated goodwill | 525,836 | 579,156 | — | 1,104,992 | ||||||||||
| Total assets | 18,910,235 | 13,476,698 | 12,815,663 | 45,202,596 | ||||||||||
(a) An unusual item of a $7.0 million loss on mortgage portfolio sale as a result of the settlement of the mortgage sale completed in the first quarter of 2024 is included within the noninterest income caption.
(b) A portion of total depreciation expense of $0.2 million, $10.9 million, and $39.2 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
| As of and for the Year Ended December 31, 2024 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services(a) | Consolidated Corporation | ||||||||||
| Net segment interest income (expense) | $ | 976,878 | $ | 247,791 | $ | (177,421) | $ | 1,047,248 | ||||||
| Net intersegment interest (expense) income | (429,917) | 579,587 | (149,670) | — | ||||||||||
| Net interest income (expense) | 546,961 | 827,378 | (327,091) | 1,047,248 | ||||||||||
| Noninterest income (expense) | 53,435 | 198,485 | (261,327) | (9,407) | ||||||||||
| Total income (expense) before provision | 600,396 | 1,025,863 | (588,418) | 1,037,841 | ||||||||||
| Provision for credit losses | 66,390 | 24,759 | (6,163) | 84,986 | ||||||||||
| Total income (expense) after provision | 534,006 | 1,001,104 | (582,255) | 952,855 | ||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | 79,853 | 232,787 | 175,316 | 487,956 | ||||||||||
Technology(b) | 2,594 | 47,241 | 57,728 | 107,563 | ||||||||||
Occupancy(b) | — | 61 | 54,561 | 54,622 | ||||||||||
| Business development and advertising | 3,543 | 3,169 | 21,430 | 28,142 | ||||||||||
Equipment(b) | 2 | 5,930 | 12,499 | 18,431 | ||||||||||
| Legal and professional | 825 | 1,978 | 18,798 | 21,601 | ||||||||||
| Loan and foreclosure costs | 1,100 | 5,018 | 2,353 | 8,471 | ||||||||||
| FDIC assessment | — | — | 38,439 | 38,439 | ||||||||||
| Other intangible amortization | — | — | 8,811 | 8,811 | ||||||||||
| Loss on prepayments of FHLB advances | — | — | 14,243 | 14,243 | ||||||||||
| Other noninterest expense | 3,338 | 27,921 | (1,141) | 30,118 | ||||||||||
| Allocated indirect expense (income) | 88,036 | 205,979 | (294,015) | — | ||||||||||
| Total noninterest expense | 179,291 | 530,084 | 109,022 | 818,397 | ||||||||||
| Net income (loss) before income taxes | 354,715 | 471,020 | (691,277) | 134,459 | ||||||||||
| Income tax expense (benefit) | 64,346 | 97,460 | (150,492) | 11,314 | ||||||||||
| Net income (loss) | $ | 290,369 | $ | 373,560 | $ | (540,785) | $ | 123,145 | ||||||
| Loans | $ | 16,959,921 | $ | 12,318,648 | $ | 490,017 | $ | 29,768,586 | ||||||
| Allocated goodwill | 525,836 | 579,156 | — | 1,104,992 | ||||||||||
| Total assets | 17,794,372 | 13,892,891 | 11,335,805 | 43,023,068 | ||||||||||
(a) Unusual items including a $130.4 million loss on mortgage portfolio sale and a $148.2 million loss on investment securities as a result of the balance sheet repositioning announced in the fourth quarter of 2024 are included within the noninterest income (expense) caption.
(b) A portion of total depreciation expense of $0.2 million, $9.7 million, and $39.1 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
| As of and for the Year Ended December 31, 2023 | ||||||||||||||
| (in thousands) | Corporate and Commercial Specialty | Community, Consumer and Business | Risk Management and Shared Services(a) | Consolidated Corporation | ||||||||||
| Net segment interest income | $ | 933,929 | $ | 309,291 | $ | (203,647) | $ | 1,039,573 | ||||||
| Net intersegment interest (expense) income | (432,073) | 487,897 | (55,824) | — | ||||||||||
| Net interest income (expense) | 501,856 | 797,188 | (259,471) | 1,039,573 | ||||||||||
| Noninterest income | 51,905 | 193,948 | (182,671) | 63,182 | ||||||||||
| Total income before provision | 553,761 | 991,136 | (442,142) | 1,102,756 | ||||||||||
| Provision for credit losses | 54,302 | 29,757 | (1,038) | 83,021 | ||||||||||
| Total income after provision | 499,459 | 961,379 | (441,104) | 1,019,734 | ||||||||||
| Noninterest expense | ||||||||||||||
| Personnel | 71,688 | 236,385 | 160,282 | 468,355 | ||||||||||
Technology(b) | 2,931 | 44,661 | 54,426 | 102,018 | ||||||||||
Occupancy(b) | — | 95 | 57,109 | 57,204 | ||||||||||
| Business development and advertising | 4,042 | 4,001 | 20,362 | 28,405 | ||||||||||
Equipment(b) | 1 | 5,770 | 13,892 | 19,663 | ||||||||||
| Legal and professional | 1,359 | 1,933 | 16,619 | 19,911 | ||||||||||
| Loan and foreclosure costs | 877 | 3,065 | 1,466 | 5,408 | ||||||||||
| FDIC assessment | — | — | 67,072 | 67,072 | ||||||||||
| Other intangible amortization | — | — | 8,811 | 8,811 | ||||||||||
| Other noninterest expense | 3,501 | 29,800 | 3,534 | 36,837 | ||||||||||
| Allocated indirect expense (income) | 83,190 | 191,613 | (274,803) | — | ||||||||||
| Total noninterest expense | 167,589 | 517,323 | 128,770 | 813,682 | ||||||||||
| Net income (loss) before income taxes | 331,870 | 444,056 | (569,873) | 206,052 | ||||||||||
| Income tax expense (benefit) | 59,143 | 91,770 | (127,816) | 23,097 | ||||||||||
| Net income (loss) | $ | 272,727 | $ | 352,286 | $ | (442,057) | $ | 182,956 | ||||||
| Loans | $ | 16,045,897 | $ | 12,642,123 | $ | 528,198 | $ | 29,216,218 | ||||||
| Allocated goodwill | 525,836 | 579,156 | — | 1,104,992 | ||||||||||
| Total assets | 16,897,021 | 13,453,475 | 10,665,359 | 41,015,855 | ||||||||||
(a) Unusual items including a $136.2 million loss on mortgage portfolio sale and a $64.9 million loss on investment securities as a result of the balance sheet repositioning announced in the fourth quarter of 2023 are included within the noninterest income (expense) caption and a $30.6 million FDIC special assessment is included in the FDIC assessment caption.
(b) A portion of total depreciation expense of $0.2 million, $8.0 million, and $38.9 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
Expenses included within the other noninterest expense line of the segment information above relate to the remaining segment expenses including office expense and card issuance costs. None of the individual expense categories rise to the level of significance for the segment; however, they are utilized in determining the profit or loss measure for each segment.
The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. GAAP. As a result, reportable segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, the information presented is not indicative of how the segments would perform if they operated as independent entities.
The chief operating decision maker for each of the segments is the President and Chief Executive Officer of the Corporation. For the Corporate and Commercial Specialty and Community, Consumer and Business segments, the chief operating decision maker utilizes net interest income, net income and average total loans and deposits in allocating resources for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. Based on the reviews of these two segments and other company-wide initiatives, the chief operating decision maker is informed about allocation of resources to the Risk Management and Shared Services segment.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.