Financial Data and Key Metrics Changes - The company reported a doubling of EBIT from FY 2024 to $113,400,000 for FY 2025, indicating strong business performance [7][14] - Revenue increased by 24.1% year on year, driven by new programs transitioning from design to construction [15][8] - The order book reached $13,000,000,000, securing revenue for years to come [8][6] Business Line Data and Key Metrics Changes - U.S. Shipbuilding revenue increased by 28%, primarily due to revenue from OPC, CATs, and submarine contracts [15][16] - Australasia Shipbuilding experienced a 60% growth, attributed to the appointment as the Commonwealth of Australia's sovereign shipbuilder [16][18] - U.S. Support revenue contracted by 9% due to changes in the deployment of LCS vessels [15][16] Market Data and Key Metrics Changes - The defense sector continues to dominate, accounting for 97% of the company's revenue [20] - The company is seeing a return of commercial orders post-COVID, with a ramp-up in production expected [12][13] Company Strategy and Development Direction - The strategic shipbuilding agreement positions the company as the prime contractor for surface combatant vessels in Australia, enhancing sovereign shipbuilding capabilities [25][24] - The company is focusing on capitalizing on increased defense expenditure in both the U.S. and Australia, with significant CapEx investments planned [26][27] - The company aims to leverage the AUKUS agreement for growth in submarine modules and technological capabilities [27][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for both the U.S. and Australian markets, highlighting a transformational year for the company [3][28] - The company anticipates continued growth in revenue and earnings, supported by a near-record EBIT and a robust order book [26][28] - Management acknowledged the challenges in U.S. shipbuilding margins but expects improvements as contracts transition [35][34] Other Important Information - The company has a strong cash position of $583,000,000, enabling it to invest in growth projects [22][21] - The workforce is growing, with nearly 4,500 employees globally, and recruitment strategies are in place to support future growth [5][60] Q&A Session Summary Question: Outlook for 2026 and margin expectations in U.S. segments - Management indicated that while there may be some volatility in margins, they expect revenue and profitability to increase as contracts transition [35][34] Question: Details on the strategic shipbuilding agreement and revenue ramp-up - Management confirmed that they are working on the landing craft medium program and expect to finalize contracts for both medium and heavy landing crafts soon, potentially adding $5,000,000,000 to the order book [38][37] Question: Opportunities for collaboration with other prime contractors in the U.S. - Management stated that they are open to working with partners to utilize their capacity and capabilities, particularly in submarine modules and other programs [42][41] Question: Performance expectations for Australasia in FY 2026 - Management expressed optimism for steady growth in profits as new programs come online, although they do not expect to double EBIT again [50][51] Question: Update on REAs and cash flow implications - Management indicated that they expect to finalize REAs soon, which will provide a significant cash injection [72][71] Question: Government involvement and potential partners for landing crafts - Management noted that the government has a strategic interest in the company, and they are working closely with them to ensure successful project execution [81][80]

Financial Data and Key Metrics Changes - EBIT doubled from FY 2024 to $113,400,000, indicating strong business performance and year-on-year improvement [7][15] - Group revenue increased by 24.1%, with U.S. shipbuilding revenue up by 28% and Australasia shipbuilding growing by 60% [16][17] - The group balance sheet strengthened by over 30% to $1,300,000,000, supported by operational performance and capital raising [22] Business Line Data and Key Metrics Changes - U.S. shipbuilding revenue increased due to contracts for OPC, CATs, and submarine contracts, offsetting declines from nearing completion of LCS and EPF programs [16][17] - Australasia shipbuilding benefited from being appointed as the Commonwealth of Australia's sovereign shipbuilder, contributing to significant revenue growth [17][18] - The support business in Australasia improved by 27% due to increased servicing work from fleet sustainment activities [17] Market Data and Key Metrics Changes - The order book reached a near record high of $13,000,000,000, securing revenue for years to come [8][9] - The defense sector continues to dominate, making up 97% of revenue, with expectations for growth in both U.S. and Australian markets [21] Company Strategy and Development Direction - The strategic shipbuilding agreement positions the company as the prime contractor for surface combatant vessels in Australia, enhancing sovereign shipbuilding capabilities [26] - The company is focusing on long-term value creation for shareholders through sustainable growth and capital investments in manufacturing capacity [6][27] - The company anticipates growth opportunities through the AUKUS agreement, particularly in submarine modules and technology [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for both U.S. and Australian markets, citing increased defense expenditure and a strong order book [3][27] - The company is optimistic about transitioning from legacy programs to new contracts, which are expected to drive revenue and profitability [36][37] - Management highlighted the importance of their workforce and the strategic initiatives taken over the past five years to achieve transformational growth [12][90] Other Important Information - The company reported a net cash position of $453,000,000, underpinned by strong operational performance and successful capital raising [9][23] - The company is investing in expanding production capacity, particularly in the U.S., to meet growing demand [23][24] Q&A Session Summary Question: Outlook for 2026, particularly regarding margins in U.S. segments - Management indicated that while there may be some volatility, they expect revenue and profitability to increase as they resolve ongoing contract issues [36][37] Question: Update on the strategic shipbuilding agreement and revenue ramp-up - Management confirmed that they are in the design phase for the medium landing craft and expect to finalize the heavy landing craft contract by the end of the calendar year [40] Question: Opportunities to work with other prime contractors in the U.S. - Management stated they are open to partnerships and have ongoing discussions to utilize their capacity for various programs [44][46] Question: Expectations for Australasia EBIT in FY 2026 - Management expressed confidence in steady growth, with no expectation of a decline, as new programs come online [52] Question: CapEx associated with landing craft construction - Management confirmed that the existing facility can accommodate the medium landing craft, while the heavy landing craft may require additional investment, likely funded by the government [68][70] Question: Update on REAs and cash flow implications - Management indicated that they expect to finalize REAs soon, which will provide a significant cash injection [74][75] Question: Impact of Hanwha's involvement and potential partnerships - Management acknowledged the uncertainty surrounding Hanwha but emphasized their long-term partnership with the government and the ability to manage any concerns [82][84]

Paddy Gregg Chief Executive Officer Christian Johnstone Chief Financial Officer FY2025 Full Year Results 29 August 2025 For personal use only 1 2 Austal 'at a glance' A growing defence prime contractor, delivering for the defence maritime and commercial sectors $1.8B FY25 revenue $13.1B Current Order Book (incl. options) 4,479 Employees 7 Ships Ordered 7 Ships Delivered In FY25 49 Ships under construction or scheduled 73 Vessels under Sustainment Contracts 5 Shipyards in 4 countries 8 Service Centres in 4 c ...

Group 1 - ASB has undergone a strategic balance sheet overhaul in Q4 2024, positioning it for success in 2025 [1] - The effectiveness of the new strategy is already evident in the Q2 2025 Earnings Presentation [1] - The market has not yet fully recognized the potential of ASB's strategic changes [1]

Core Viewpoint - Shares of Associated Banc-Corp (ASB) have recently declined by 5.9% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom, with selling pressure likely subsiding, which supports a bullish outlook for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control during a downtrend [4][5]. - The occurrence of this pattern at the bottom of a downtrend suggests that bulls may be gaining strength, indicating a potential trend reversal [5]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for ASB, which enhances the stock's prospects for a trend reversal [2][7]. - The consensus EPS estimate for ASB has increased by 3.5% over the last 30 days, indicating analysts' agreement on the company's potential for better earnings [8]. - ASB currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10]. Conclusion - The combination of the hammer chart pattern and positive earnings estimate revisions suggests a favorable outlook for Associated Banc-Corp, indicating potential for a turnaround in stock performance [1][7][10].

Key Takeaways U.S. stocks plummeted last Friday as escalating trade tensions and weak labor data dampened investor confidence. The newly announced tariffs on several trading partners heightened concerns about global growth, while a surprisingly soft July jobs report cast a shadow over the domestic economic outlook. These developments led to a broad sell-off across Wall Street. The latest employment data delivered an unexpected shock to the market. Nonfarm payrolls rose only 73,000 in July, well below consen ...

Core Insights - Zacks Premium provides various tools to help investors make informed decisions in the stock market, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores are indicators designed to assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] - The Growth Score evaluates a company's future prospects through projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and positive momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [9] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment potential [10] Company Spotlight: Associated Banc-Corp - Associated Banc-Corp, founded in 1964 and based in Green Bay, WI, is a bank holding company offering a range of banking and non-banking services [12] - The company holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong potential [12] - Associated Banc-Corp's Value Style Score is B, supported by a forward P/E ratio of 9.85, making it attractive to value investors [13] - Recent upward revisions in earnings estimates by four analysts have increased the Zacks Consensus Estimate to $2.56 per share, with an average earnings surprise of +5.5% [13]

[PART I. Financial Information](index=5&type=section&id=PART%20I.%20Financial%20Information) This section provides the unaudited financial statements and management's analysis of the company's financial condition and operational results [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for June 30, 2025, show total assets of $44.0 billion and net income of $212.9 million, driven by increased net interest income [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $44.0 billion by June 30, 2025, driven by loan growth and FHLB advances, while deposits slightly decreased Consolidated Balance Sheet Highlights (in thousands, as of June 30, 2025 vs. Dec 31, 2024) | Metric | Jun 30, 2025 (Unaudited) | Dec 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$43,993,729** | **$43,023,068** | **+2.25%** | | Loans, net | $30,231,091 | $29,405,041 | +2.81% | | Total Deposits | $34,147,565 | $34,648,434 | -1.45% | | FHLB advances | $3,879,489 | $1,853,807 | +109.27% | | **Total Liabilities** | **$39,212,948** | **$38,417,506** | **+2.07%** | | **Total Stockholders' Equity** | **$4,780,781** | **$4,605,562** | **+3.80%** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net interest income rose 13.9% to $585.9 million for the six months ended June 30, 2025, contributing to an 8.2% increase in net income Consolidated Income Statement Summary (in thousands, Six Months Ended June 30) | Metric (except EPS) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $585,940 | $514,451 | +13.9% | | Provision for credit losses | $30,999 | $47,009 | -34.1% | | Total Noninterest Income | $125,754 | $130,144 | -3.4% | | Total Noninterest Expense | $419,971 | $393,518 | +6.7% | | Net Income | $212,916 | $196,742 | +8.2% | | Net Income Available to Common Equity | $207,166 | $190,992 | +8.5% | | Diluted Earnings Per Common Share | $1.24 | $1.26 | -1.6% | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly increased to $273.0 million for the six months ended June 30, 2025, driven by net income and positive other comprehensive income Comprehensive Income Summary (in thousands, Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Income | $212,916 | $196,742 | | Total Other Comprehensive Income (Loss) | $60,119 | $(48,117) | | **Comprehensive Income** | **$273,035** | **$148,625** | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Total stockholders' equity grew to $4.78 billion by June 30, 2025, primarily due to comprehensive income, partially offset by dividends - Total stockholders' equity grew to **$4.78 billion** by June 30, 2025, up from **$4.61 billion** at the end of 2024[25](index=25&type=chunk) - Common stock dividends of **$0.23 per share** were paid in the second quarter of 2025[26](index=26&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $239.6 million, while financing activities provided $765.5 million, leading to a $240.5 million net increase in cash Cash Flow Summary (in thousands, Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $239,637 | $267,996 | | Net cash used in investing activities | $(764,621) | $(655,093) | | Net cash provided by financing activities | $765,485 | $422,369 | | **Net increase in cash and cash equivalents** | **$240,501** | **$35,272** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies and financial data, covering investment securities, loans, funding, and segment reporting [Note 5: Investment Securities](index=15&type=section&id=Note%205%3A%20Investment%20Securities) The investment portfolio includes $5.04 billion in AFS and $3.67 billion in HTM securities, with unrealized losses attributed to interest rate changes Investment Securities Portfolio (in thousands, June 30, 2025) | Category | Amortized Cost | Fair Value | | :--- | :--- | :--- | | Total AFS investment securities | $5,007,880 | $5,036,508 | | Total HTM investment securities | $3,672,161 | $3,140,331 | - Management does not believe any unrealized losses at June 30, 2025 represent credit deterioration, attributing them primarily to changes in interest rates and market conditions[60](index=60&type=chunk) [Note 6: Loans](index=20&type=section&id=Note%206%3A%20Loans) Total loans increased to $30.6 billion by June 30, 2025, with commercial loans forming the largest segment, and credit quality details provided Loan Composition (in thousands) | Loan Category | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total commercial | $19,704,154 | $18,928,090 | | Total consumer | $10,903,451 | $10,840,496 | | **Total loans** | **$30,607,605** | **$29,768,586** | - Total nonaccrual loans stood at **$113.0 million** as of June 30, 2025, down from **$123.3 million** at December 31, 2024[76](index=76&type=chunk)[78](index=78&type=chunk) [Note 8: Short and Long-Term Funding](index=32&type=section&id=Note%208%3A%20Short%20and%20Long-Term%20Funding) Funding structure shifted with FHLB advances more than doubling to $3.88 billion, while short-term and other long-term funding decreased Funding Composition (in thousands) | Funding Source | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Short-term funding | $75,585 | $470,369 | | FHLB advances | $3,879,489 | $1,853,807 | | Other long-term funding | $593,530 | $837,635 | - In January 2025, **$250.0 million** of 10-year subordinated notes matured and were repaid, contributing to the decrease in long-term funding[102](index=102&type=chunk) [Note 14: Segment Reporting](index=45&type=section&id=Note%2014%3A%20Segment%20Reporting) The Corporation operates three segments, with Community, Consumer, and Business generating the highest net income at $171.8 million Net Income by Segment (in thousands, Six Months Ended June 30, 2025) | Segment | Net Income (Loss) | | :--- | :--- | | Corporate and Commercial Specialty | $135,377 | | Community, Consumer, and Business | $171,782 | | Risk Management and Shared Services | $(94,241) | | **Consolidated Net Income** | **$212,916** | - Effective in Q4 2024, the private wealth operating segment was moved from the Corporate and Commercial Specialty segment to the Community, Consumer and Business segment, with prior periods recast to reflect this change[159](index=159&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong first-half 2025 performance with 14% net interest income growth and expanded net interest margin, maintaining robust capital and liquidity [Performance Summary](index=53&type=section&id=Performance%20Summary) First-half 2025 saw average loans increase 3% and net interest income grow 14% to $585.9 million, with net interest margin expanding to 3.01% - Average loans increased by **$828.3 million (3%)** from the first six months of 2024, driven by commercial and auto finance lending[191](index=191&type=chunk) - Net interest income rose by **$71.5 million (14%)** year-over-year, with net interest margin increasing to **3.01%** from **2.77%** due to balance sheet repositioning[191](index=191&type=chunk) - Noninterest expense increased by **$26.5 million (7%)** from the first six months of 2024, primarily due to annual merit increases, higher consultant fees, and OREO write-downs[191](index=191&type=chunk) [Balance Sheet Analysis](index=59&type=section&id=Balance%20Sheet%20Analysis) Total assets grew 2% to $44.0 billion by June 30, 2025, driven by loan growth and a 109% increase in FHLB advances, despite a 1% deposit decrease - Total assets reached **$44.0 billion**, up **2%** from December 31, 2024, with loans increasing by **$839.0 million**[209](index=209&type=chunk) - FHLB advances increased by **$2.0 billion (109%)** to fund loan growth and manage seasonal deposit outflows[209](index=209&type=chunk) - Residential loans held for sale decreased by **$549.9 million (85%)** following the closing of a mortgage portfolio sale in January 2025[209](index=209&type=chunk) [Credit Risk and Nonperforming Assets](index=61&type=section&id=Credit%20Risk%20and%20Nonperforming%20Assets) Credit risk is managed through diversification, with nonperforming assets at $148.2 million (0.48% of total loans plus OREO) and nonaccrual loans decreasing Nonperforming Assets (in thousands) | Metric | Jun 30, 2025 | Dec 31, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Total nonaccrual loans | $112,999 | $123,260 | $154,423 | | OREO | $34,287 | $20,217 | $8,325 | | **Total nonperforming assets** | **$148,169** | **$144,164** | **$163,418** | | NPAs to total loans plus OREO | 0.48% | 0.48% | 0.55% | - The largest commercial and industrial industry exposures are in Real Estate (**9% of total loan exposure**) and Utilities (**8% of total loan exposure**)[216](index=216&type=chunk) [Liquidity and Capital](index=67&type=section&id=Liquidity%20and%20Capital) The Corporation maintains strong liquidity of $14.7 billion, covering uninsured deposits by 173%, and robust capital ratios exceeding regulatory minimums Key Capital Ratios (as of June 30, 2025) | Ratio | Value | Regulatory Minimum (Well-Capitalized) | | :--- | :--- | :--- | | CET1 capital ratio | 10.20% | 6.5% | | Tier 1 capital ratio | 10.77% | 8.0% | | Total capital ratio | 12.83% | 10.0% | | Tier 1 leverage ratio | 8.72% | 5.0% | - Total available liquidity was **$14.7 billion** at June 30, 2025, including **$5.0 billion** in FHLB capacity and **$5.4 billion** in Federal Reserve discount window capacity[252](index=252&type=chunk)[254](index=254&type=chunk) - Estimated uninsured and uncollateralized deposits were **24.8% of total deposits** at June 30, 2025, with available liquidity covering these deposits by **173%**[253](index=253&type=chunk)[254](index=254&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market and interest rate risk are centrally managed, with the Corporation's asset-sensitive profile indicating a 1.6% earnings improvement from a 100 bp rate increase Estimated % Change in Rate Sensitive Earnings at Risk (EAR) Over 12 Months | Gradual Rate Change | Dynamic Forecast (Jun 30, 2025) | Static Forecast (Jun 30, 2025) | | :--- | :--- | :--- | | 100 bp increase | 1.6% | 1.4% | | 100 bp decrease | (1.0)% | (0.9)% | - The Corporation's interest rate risk profile is asset sensitive as of June 30, 2025, indicating that a higher yield curve generally adds to income[264](index=264&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of June 30, 2025[308](index=308&type=chunk) - There were no material changes to the Corporation's internal control over financial reporting during the second quarter of 2025[309](index=309&type=chunk) [PART II. Other Information](index=78&type=section&id=PART%20II.%20Other%20Information) This section provides other required information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) The Corporation is involved in various legal proceedings, with management believing outcomes will not materially adversely affect its overall financial condition - The Corporation is party to various legal proceedings in the normal course of business and believes the outcomes will not have a material adverse effect on its overall financial condition[131](index=131&type=chunk)[134](index=134&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - No material changes in Risk Factors were reported since the 2024 Annual Report on Form 10-K[312](index=312&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation repurchased 4,134 common shares for tax withholding in Q2 2025, with $39.1 million remaining authorized for repurchase Common Stock Purchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,045 | $21.41 | | May 2025 | 2,088 | $22.95 | | June 2025 | 1,001 | $22.88 | | **Total** | **4,134** | **$22.54** | - As of June 30, 2025, **$39.1 million** remained available for repurchase under the 2021 Board authorization[314](index=314&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement in the second quarter of 2025[316](index=316&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include employment agreements, equity plans, and CEO/CFO certifications under Sarbanes-Oxley - Exhibits filed include certifications under Section 302 and 906 of Sarbanes-Oxley by the CEO and CFO[321](index=321&type=chunk)[322](index=322&type=chunk)

Core Viewpoint - Associated Banc-Corp (ASB) reported better-than-expected quarterly performance, with Q2 2025 earnings of 65 cents per share, surpassing the Zacks Consensus Estimate of 62 cents, although down from 74 cents in the prior-year quarter [1][8]. Financial Performance - Net income available to common shareholders was $108.4 million, a decrease of 4% from the year-ago quarter, exceeding the estimate of $101.9 million [2]. - Total revenues for the quarter were $371.2 million, a 14% year-over-year increase, beating the Zacks Consensus Estimate of $362.8 million [3]. - Net interest income (NII) rose to $300 million, up 17% year-over-year, with a net interest margin of 3.04%, an increase of 29 basis points [3][8]. - Non-interest income was $67 million, a 3% increase, slightly above the estimate of $66.8 million [4]. Expense and Efficiency - Non-interest expenses increased by 7% to $209.4 million, closely aligning with the estimate of $209.2 million [4]. - The efficiency ratio improved to 55.81%, down from 59.51% in the prior-year quarter, indicating enhanced profitability [4]. Loan and Deposit Trends - Total loans as of June 30, 2025, were $30.6 billion, a 1% increase from the prior quarter, slightly below the estimate of $30.8 billion [5]. - Total deposits declined by 3% to $34.1 billion, underperforming the estimate of $34.4 billion [5]. Credit Quality - The provision for credit losses was $18 million, down 22% from the prior-year quarter, slightly above the estimate of $16.3 million [6]. - Total non-performing assets decreased by 9% to $148.2 million, and total non-accrual loans fell by 27% to $113 million [6]. Capital Ratios - The Tier 1 risk-based capital ratio improved to 10.77%, up from 10.27% in the corresponding period of 2024 [9]. - The common equity Tier 1 capital ratio rose to 10.20%, compared to 9.68% previously [9]. Future Outlook - Management expects loans to grow at a rate of 5-6% and total core customer deposits to rise by 4-5% [10]. - NII growth is now projected to be in the range of 14-15%, an increase from the previous guidance of 12-13% [10]. - Total non-interest income is expected to rise by 1-2%, a change from the previous outlook of stability or 1% growth [11].

Core Insights - Associated Banc-Corp achieved a record net interest income of $300 million in Q2 2025, leading to GAAP earnings per share of $0.65, surpassing analyst estimates of $0.62 [1][2][5] - Despite the record net interest income, GAAP revenue fell short of expectations at $300 million, down 6.8% year-over-year, primarily due to subdued noninterest income growth [1][2][6] Financial Performance - GAAP EPS for Q2 2025 was $0.65, a decrease of 12.2% from $0.74 in Q2 2024 [2] - Total GAAP revenue was $300 million, down from $321.75 million in Q2 2024 [2] - Net interest income increased by 16.9% year-over-year, from $256.59 million in Q2 2024 [2][5] - Net interest margin improved to 3.04%, up from 2.75% a year earlier [2][5] - Total noninterest expense rose to $209 million, a 7% increase from the previous year [9] Business Operations - Associated Banc-Corp operates 188 branches across over 100 communities, focusing on retail and commercial banking services [3] - The bank's strategic focus includes accelerating commercial loan growth, improving deposit mix, and managing risk [4] - Commercial loan balances grew to $30.6 billion, reflecting a 3% year-over-year increase [7] Deposit Trends - Total deposits decreased by $1.0 billion or 3% sequentially but increased by 4% year-over-year [8] - Core customer deposits also fell by 3% from the previous quarter [8] - Noninterest-bearing demand deposits declined by 5.8% compared to the previous year [8] Credit Quality - Provision for credit losses rose by $5 million from the previous quarter but decreased by $5 million compared to last year [10] - Nonaccrual loans decreased to 0.37% of total loans from 0.52% a year ago [10] - The allowance for credit losses on loans increased slightly to 1.35% of total loans [10] Future Guidance - Management raised its outlook for net interest income growth to 14%-15% for the full year 2025 [13] - Noninterest income is expected to grow by 1%-2% annually, while noninterest expenses are projected to rise by 4%-5% [13] - Full-year loan growth is anticipated at 5%-6%, with total deposit growth guidance adjusted to 1%-3% [13]