Associated Banc-Corp (ASB) risk factors, 2025 10-K

Other

1. 01Changes and instability in economic conditions, geopolitical matters and financial markets, including a contraction of economic activity, could adversely impact our business, results of operations and financial condition
2. 02Changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations
3. 03Our allowance for credit losses on loans may be insufficient
4. 04We are subject to lending concentration risks
5. 05CRE lending may expose us to increased lending risks
6. 06We depend on the accuracy and completeness of information furnished by and on behalf of our customers and counterparties
7. 07Lack of system integrity or credit quality related to funds settlement could result in a financial loss
8. 08We are subject to environmental liability risk associated with lending activities
9. 09Impairment of our access to liquidity could affect our ability to meet our obligations
10. 10The proportion of our deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk in times of financial distress
11. 11Adverse changes to our credit ratings could limit our access to funding and increase our borrowing costs
12. 12support to the Corporation or its subsidiaries in a crisis. Rating agencies could make adjustments to our credit ratings at any time, and there can be no assurance that they will maintain our ratings at current levels or that downgrades will not occur
13. 13We are subject to interest rate risk
14. 14The impact of interest rates on our mortgage banking business can have a significant impact on revenues
15. 15Changes in interest rates could reduce the value of our investment securities holdings which would increase our accumulated other comprehensive loss and thereby negatively impact stockholders' equity
16. 16Changes in interest rates could also reduce the value of our residential mortgage-related securities and MSRs, which could negatively affect our earnings
17. 17We rely on dividends from our subsidiaries for most of our cash flow

Operational Risks

1. 18We face significant operational risks due to the high volume and the high dollar value nature of transactions we process
2. 19Unauthorized disclosure of sensitive or confidential client or customer information, whether through a cyber-attack, other breach of our computer systems or otherwise, could severely harm our business
3. 20From time to time, the Corporation engages in acquisitions, including acquisitions of depository institutions. The integration of core systems and processes for such transactions often occurs after the closing, which may create elevated risk of cyber incidents
4. 21We rely heavily on communications and information systems to conduct our business. We have experienced cybersecurity attacks in the past and our communications and information systems may experience an interruption or breach in security from future attacks
5. 22We are subject to certain industry standards regarding our credit card-related services. Failure to meet those standards may significantly impact our ability to offer these services
6. 23Any actual or perceived failure to comply with evolving regulatory frameworks around the development and use of AI could adversely affect our business, results of operations, and financial condition
7. 24We are dependent upon third parties for certain information system, data management and processing services, and to provide key components of our business infrastructure
8. 25The potential for business interruption exists throughout our organization
9. 26Changes in the federal, state, or local tax laws may negatively impact our financial performance
10. 27Impairment of investment securities, goodwill, other intangible assets, or DTAs could require charges to earnings, which could result in a negative impact on our results of operations
11. 28Failure to appropriately administer or manage our investment management and asset servicing businesses properly could put the related earnings at risk
12. 29Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business
13. 30Severe weather, natural disasters, public health issues, civil unrest, acts of war or terrorism, and other external events could significantly impact our ability to conduct business
14. 31The Corporation is subject to a variety of risks arising from ESG/DEI matters, which include, among other things, climate change, human capital, and human rights. Risks arising from such matters may adversely affect, among other things, our reputation and the market price of our securities
15. 32government authorities of the Corporation’s human capital and strategic businesses practices, or those of the banking sector generally, may have a material adverse effect on us. Please refer to Item 1 – Business – Human Capital Matters

Strategic and External Risks

1. 33Our earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies
2. 34Significant changes to the size, structure, powers and operations of the federal government may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition
3. 35Our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively
4. 36We operate in a highly competitive industry and market area
5. 37Fiscal challenges facing the U.S. government could negatively impact financial markets which in turn could have an adverse effect on our financial position or results of operations
6. 38Consumers may decide not to use banks to complete their financial transactions
7. 39Our profitability depends significantly on economic conditions in the states within which we do business
8. 40The earnings of financial services companies are significantly affected by general business and economic conditions
9. 41New lines of business or new products and services may subject us to additional risk
10. 42Failure to keep pace with technological change could adversely affect our business
11. 43We may be adversely affected by risks associated with potential and completed acquisitions
12. 44Acquisitions may be delayed, impeded, or prohibited due to regulatory issues
13. 45In addition, the DOJ withdrew from the 1995 Bank Merger Guidelines and announced that it would consider bank mergers under its 2023 Merger Guidelines, which includes a brief bank merger addendum

Legal, Regulatory, Compliance and Reputational Risks

1. 46We are subject to extensive government regulation and supervision
2. 47The Bank faces risks related to the adoption of future legislation and potential changes in federal regulatory agency leadership, policies, and priorities
3. 48We could continue to experience adjustments in FDIC insurance assessments
4. 49Changes in requirements relating to the standard of conduct for broker-dealers under applicable federal and state law may adversely affect our business
5. 50The Bank is periodically examined for mortgage-related issues, including mortgage loan and default services, fair lending, and mortgage banking
6. 51We may experience unanticipated losses as a result of residential mortgage loan repurchase or reimbursement obligations under agreements with secondary market purchasers
7. 52Fee revenues from overdraft protection programs constitute a significant portion of our noninterest income and have become subject to increased supervisory scrutiny
8. 53We are subject to examinations and challenges by tax authorities
9. 54We are subject to claims and litigation pertaining to fiduciary responsibility
10. 55We are a defendant in a variety of litigation and other actions, which may have a material adverse effect on our financial condition and results of operation
11. 56Negative publicity could damage our reputation
12. 57Ethics or conflict of interest issues could damage our reputation

Risks Related to an Investment in Our Securities

1. 58The price of our securities can be volatile
2. 59There may be future sales or other dilution of our equity, which may adversely affect the market price of our securities
3. 60We may reduce or eliminate dividends on our common stock
4. 61Common stock is equity and is subordinate to our existing and future indebtedness and preferred stock and effectively subordinated to all the indebtedness and other non-common equity claims against our subsidiaries
5. 62Our articles of incorporation, bylaws, and certain banking laws may have an anti-takeover effect
6. 63An investment in our common stock is not an insured deposit
7. 64Our ability to originate residential mortgage loans for portfolio has been adversely affected by the increased competition resulting from the unprecedented involvement of the U.S. government and GSEs in the residential mortgage market
8. 65Changes in our accounting policies or in accounting standards could materially affect how we report our financial results
9. 66Our internal controls may be ineffective
10. 67We may not be able to attract and retain skilled people
11. 68Loss of key colleagues may disrupt relationships with certain customers