ASSOCIATED BANC-CORP

Red flags

• Commercial loans comprised 65% of the loan portfolio at December 31, 2025, creating sensitivity to borrower defaults and larger individual credit losses.
• CRE loans totaled $8.4 billion, equal to 27% of total loans and 183% of total risk-based capital. Although nonaccrual CRE loans were only $8.7 million, management expects instability as loans refinance in higher-vacancy markets.
• Total FHLB advances increased to $3.27 billion from $1.85 billion year over year, while total short- and long-term funding rose to $4.17 billion from $3.16 billion.
• 2025 earnings benefited materially from comparisons against 2024’s $130.4 million mortgage-sale loss and $148.2 million investment-securities loss; the reported rebound is not fully representative of underlying recurring growth.
• The company had $11.9 billion of commitments to extend credit and $222.0 million of standby letters of credit at year-end, creating additional potential exposure if commercial borrowers weaken.