Associated Banc-Corp. (ASB)

Risks

• The coronavirus (COVID-19) pandemic has resulted in significant deterioration and disruption in national and local economic conditions and record levels of unemployment, which may have a material impact on our business, financial condition or results of operations.
• Regulatory and governmental actions to mitigate the impact of the COVID-19 pandemic on borrowers could result in a material decline in our earnings.
• Changes in economic and political conditions could adversely affect our earnings, as our borrowers’ ability to repay loans and the value of the collateral securing our loans decline.
• Changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations.
• Our allowance for credit losses may be insufficient.
• We are subject to lending concentration risks.
• CRE lending may expose us to increased lending risks.
• We depend on the accuracy and completeness of information furnished by and on behalf of our customers and counterparties.
• Lack of system integrity or credit quality related to funds settlement could result in a financial loss.
• We are subject to environmental liability risk associated with lending activities.
• Liquidity is essential to our businesses.
• We are subject to interest rate risk.
• The impact of interest rates on our mortgage banking business can have a significant impact on revenues.
• Changes in interest rates could reduce the value of our investment securities holdings.
• Changes in interest rates could also reduce the value of our residential mortgage-related securities and MSRs, which could negatively affect our earnings.
• The replacement of the LIBOR as a financial benchmark presents risks to the financial instruments originated or held by the Corporation.
• We rely on dividends from our subsidiaries for most of our revenue.
• We face significant operational risks due to the high volume and the high dollar value nature of transactions we process.
• Unauthorized 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.
• Information security risks for financial institutions like us continue to increase in part because of new technologies, the increased use of the internet and telecommunications technologies (including mobile devices and cloud computing) to conduct financial and other business transactions, political activism, and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.
• From time to time, the Corporation engages in acquisitions, including acquisitions of depository institutions. The integration of core systems and processes for such transactions often occur after the closing, which may create elevated risk of cyber incidents.
• The potential for business interruption exists throughout our organization.
• Changes in the federal, state, or local tax laws may negatively impact our financial performance.
• Impairment 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.
• Revenues from our investment management and asset servicing businesses are significant to our earnings.
• Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business.
• Severe weather, natural disasters, public health issues, acts of war or terrorism, and other external events could significantly impact our ability to conduct business.
• Our earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies.
• Our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.
• We operate in a highly competitive industry and market area.
• Fiscal 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.
• Consumers may decide not to use banks to complete their financial transactions.
• Our profitability depends significantly on economic conditions in the states within which we do business.
• The earnings of financial services companies are significantly affected by general business and economic conditions.
• New lines of business or new products and services may subject us to additional risk.
• Failure to keep pace with technological change could adversely affect our business.
• We may be adversely affected by risks associated with potential and completed acquisitions.
• Acquisitions may be delayed, impeded, or prohibited due to regulatory issues.
• We are subject to extensive government regulation and supervision.
• The Bank faces risks related to the adoption of future legislation and potential changes in federal regulatory agency leadership, policies, and priorities.
• Changes in requirements relating to the standard of conduct for broker-dealers under applicable federal and state law may adversely affect our business.
• The CFPB has reshaped the consumer financial laws through rulemaking and enforcement of the prohibitions against unfair, deceptive and abusive business practices. Compliance with any such change may impact the business operations of depository institutions offering consumer financial products or services, including the Bank.
• The Bank is periodically examined for mortgage-related issues, including mortgage loan and default services, fair lending, and mortgage banking.
• Fee revenues from overdraft protection programs constitute a significant portion of our noninterest income and may be subject to increased supervisory scrutiny.
• We are subject to examinations and challenges by tax authorities.
• We are subject to claims and litigation pertaining to fiduciary responsibility.
• We 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.
• The Economic Growth Act did not eliminate many of the aspects of the Dodd-Frank Act that have increased our compliance costs, and remains subject to further rulemaking.
• Negative publicity could damage our reputation.
• Ethics or conflict of interest issues could damage our reputation.
• The price of our securities can be volatile.
• There may be future sales or other dilution of our equity, which may adversely affect the market price of our securities.
• We may reduce or eliminate dividends on our common stock.
• Common 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.
• Our articles of incorporation, bylaws, and certain banking laws may have an anti-takeover effect.
• An investment in our common stock is not an insured deposit.
• An entity holding as little as a 5% interest in our outstanding common stock could, under certain circumstances, be subject to regulation as a "bank holding company."
• Our 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.
• Changes in our accounting policies or in accounting standards could materially affect how we report our financial results.
• Our internal controls may be ineffective.
• We may not be able to attract and retain skilled people.
• Loss of key employees may disrupt relationships with certain customers.