Financial Data and Key Metrics Changes - The company reported earnings of $0.73 per share for Q3 2025, with net interest income reaching a record $305 million, up 16% compared to Q3 2024 [6][8] - Total loans grew by 1% quarter-over-quarter and 3% year-over-year, with C&I loans leading the growth, increasing by nearly $1 billion year-to-date [6][11] - The CET1 capital ratio increased by 30 basis points year-to-date, reaching 10.33% in Q3 [5][20] Business Line Data and Key Metrics Changes - C&I lending saw significant growth, with nearly $300 million added in Q3 alone, contributing to a year-to-date increase of nearly $1 billion [7][11] - Core customer deposits increased by over $600 million in Q3, up 2% from Q2 and over 4% or $1.2 billion compared to the same period last year [12][14] - Non-interest income rose to $81 million in Q3, a 21% increase from the prior quarter, driven by capital markets revenue and wealth fees [8][18] Market Data and Key Metrics Changes - The company experienced strong seasonal deposit inflows, with core customer deposits up 2% or $628 million from Q2 [7][12] - The overall wholesale funding sources decreased by 2% versus Q2, indicating a shift towards lower-cost core deposits [12][14] - The company expects total bank loan growth of 5% to 6% for the year, despite challenges in the CRE sector [11][45] Company Strategy and Development Direction - The company is focused on organic growth and deepening customer relationships, with a strategy to hire talented relationship managers in underpenetrated metro markets [9][10] - The strategic investments are aimed at enhancing profitability and capital generation while maintaining a conservative credit culture [5][9] - The company plans to continue refining its focus on commercial deposits and enhancing its consumer value proposition [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and deepen its customer base despite macroeconomic uncertainties [6][10] - The outlook for 2026 remains positive, with expectations for continued strong C&I growth and improved deposit production [30][31] - Management highlighted the importance of maintaining credit discipline and proactive portfolio management in the current economic environment [5][22] Other Important Information - The company reported flat delinquencies and non-accruals at 34 basis points of total loans, indicating stable asset quality [8][24] - The efficiency ratio improved to below 55%, reflecting positive operating leverage [19][20] - The company is preparing for product upgrades and enhancements in late Q4 2025 and into 2026 to attract and retain customers [12][14] Q&A Session Summary Question: What happens when the remaining RMs come off their non-compete? - Management expects C&I growth to accelerate as more relationship managers become available, with production up 12% and pipelines up 31% [30] Question: Can you discuss the fee income and expectations for Q4? - Management noted that Q3 included a one-time asset gain, and while Q4 may see a decline, underlying capital markets and commercial production trends remain positive [32] Question: How does the company view the margin outlook with potential rate cuts? - Management believes there is an opportunity for continued margin improvement, despite potential fluctuations due to market behavior [33][51] Question: What drove the modest increase in deposit costs in Q3? - The increase was attributed to seasonal factors and higher-end pricing accounts, but management remains comfortable with the overall deposit pricing [37] Question: What is the company's approach to hiring new relationship managers? - The company is open to hiring quality relationship managers year-round and will be opportunistic in seizing opportunities as they arise [40] Question: How does the company view the interplay between C&I growth and headwinds in other areas? - Management acknowledged that while RESI is a headwind in terms of balances, it is a purposeful strategy, and they expect to offset CRE payoffs with increased production in other areas [44]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported earnings of $0.73 per share, with total loans growing by 1% quarter-over-quarter and 3% year-over-year [8][10] - Net interest income reached a record $305 million in Q3, up 16% compared to 2024, while the net interest margin held steady at 3.04% [10][21] - The return on average tangible common equity improved to over 14%, a 250 basis point increase from Q3 of the previous year [12] Business Line Data and Key Metrics Changes - Commercial and industrial (C and I) loans grew by nearly $300 million in Q3 and by almost $1 billion year-to-date, leading the growth in total loans [9][15] - Core customer deposits increased by over $600 million in Q3, with a year-over-year growth of 4% or $1.2 billion [10][16] - Non-interest income for Q3 was $81 million, a 21% increase from the prior quarter, driven by capital markets revenue and wealth fees [10][24] Market Data and Key Metrics Changes - The company added $600 million in core deposits in Q3, contributing to a decrease in reliance on wholesale funding, which fell by 2% compared to Q2 [16] - The overall wholesale funding sources decreased, indicating a shift towards more stable funding sources [16] Company Strategy and Development Direction - The company is focused on organic growth, particularly in commercial lending and deposit acquisition, by hiring talented relationship managers in underpenetrated metro markets [12][13] - The strategy includes remixing the balance sheet to replace low-yielding residential mortgages with higher-yielding commercial loans, enhancing profitability [13][14] - The company aims to maintain a conservative credit culture while proactively managing existing portfolios and emerging risks [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and deepen its customer base despite macroeconomic uncertainties [8][12] - The outlook for 2026 remains positive, with expectations for continued growth in C and I loans and core deposits as non-compete agreements expire [12][19] - Management is closely monitoring credit quality and macroeconomic factors, maintaining a high degree of confidence in the loan portfolio [29][31] Other Important Information - The company expects total bank loan growth of 5% to 6% for the year, with a focus on maintaining credit discipline [15][19] - Capital ratios increased, with the CET1 ratio rising to 10.33%, indicating a strong capital position [27] Q&A Session Summary Question: What happens when the remaining RMs come off their non-compete? - Management expects growth rates to accelerate as production is up 12% and the pipeline is up 31% [35][36] Question: Can you discuss the fee income and expectations for Q4? - Fee income can be lumpy, and a one-time asset gain in Q3 is not likely to repeat at the same level, but underlying capital markets and commercial production are expected to remain strong [39][40] Question: How do you see the return on average tangible common equity improving further? - Management believes there are opportunities to continue improving the return on equity, especially with the hiring of new talent and the response to rate cuts [41][42] Question: What drove the modest increase in deposit costs in Q3? - The increase was attributed to seasonality and higher pricing accounts coming back into play, but overall, management is comfortable with the net results [49][50] Question: What is the outlook for loan growth in residential and commercial real estate? - Residential loans are expected to continue running off, while commercial real estate payoffs may remain elevated, but new construction lending is increasing [59][62] Question: Is the company considering M&A for growth? - The focus remains on organic growth, but the company is open to opportunistic acquisitions if they align with its strategy [66] Question: How is the lending pipeline performing? - The increase in the lending pipeline is primarily due to new hires and market share gains rather than borrower optimism [72][74]

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Financial Performance - Associated Banc-Corp (ASB) reported net income available to common equity of $122 million, or $0.73 per common share[7] - Net interest income was $305 million[7], with a net interest margin of 3.04%[7], a 16.3% increase compared to 3Q 2024[7] - Noninterest income reached $81 million[7], while noninterest expense amounted to $216 million[7] Balance Sheet Growth - Total loans reached $31.0 billion, a 1.1% increase compared to 2Q 2025 and a 3.2% increase compared to 3Q 2024[7] - Total C&I (Commercial & Industrial) loans amounted to $11.6 billion, a 2.5% increase compared to 2Q 2025 and a 12.8% increase compared to 3Q 2024[7] - Total deposits reached $34.9 billion, a 2.2% increase compared to 2Q 2025 and a 4.0% increase compared to 3Q 2024[7] - Core customer deposits totaled $28.9 billion, a 2.2% increase compared to 2Q 2025 and a 4.2% increase compared to 3Q 2024[7] Asset Quality - The allowance for credit losses on loans (ACLL) was 1.34% of total loans[7], with net charge-offs (NCOs) at 0.17% of average loans (annualized)[7] - Total common equity to total assets was 10.51%[7], with a tangible common equity (TCE) ratio of 8.18%[7] Strategic Outlook - The company maintains its FY 2025 guidance for total loans (up 5% to 6%), total deposits (up 1% to 3%), and core customer deposits (up 4% to 5%)[68] - The effective tax rate guidance for FY 2025 has been updated to 18% to 19%[68] - Noninterest income guidance for FY 2025 is up 5% to 6%, and noninterest expense is projected to increase by 5% to 6%[68]

Financial Performance - Net income available to common equity for Q3 2025 was $122 million, or $0.73 per common share, up from $108 million, or $0.65 per share in Q2 2025, and $85 million, or $0.56 per share in Q3 2024[1]. - Noninterest income for Q3 2025 was $81 million, an increase of $14 million from both the prior quarter and the same period last year[14]. - Net income for Q3 2025 was reported at $124,732, a 12% increase from $111,230 in Q2 2025[30]. - Earnings per common share for Q3 2025 were $0.73, up 12% from $0.65 in the previous quarter[30]. - Net income increased by 42% to $124,732,000, compared to $88,018,000 in the same quarter last year[28]. - The company reported a net income of $337,648 thousand for the year-to-date, up from $284,760 thousand in the previous year, indicating a growth of 18.5%[47]. Income and Expenses - Total noninterest expense for Q3 2025 was $216 million, up $7 million from Q2 2025 and $16 million from Q3 2024[15]. - Total noninterest expense increased by 8% to $216,202,000, compared to $200,597,000 in the same quarter last year[28]. - Noninterest expense for the latest quarter was $636,173 thousand, compared to $594,115 thousand in the same quarter last year, reflecting an increase of 7.1%[47]. Loans and Deposits - Total period end loans reached $31.0 billion, up 1% from Q2 2025 and 3% from Q3 2024[4]. - Total period end deposits increased to $34.9 billion, a 2% increase from Q2 2025 and a 4% increase from Q3 2024[9]. - Total loans increased to $30,750,460 thousand with an interest income of $456,153 thousand, maintaining an average yield of 5.89%[32]. - Total deposits reached $34,881,853 thousand in September 2025, up from $34,147,565 thousand in September 2024, indicating a growth of 2.1% year-over-year[47]. Capital and Ratios - The CET1 capital ratio stood at 10.33% as of September 30, 2025, exceeding Basel III regulatory benchmarks[20]. - Common equity Tier 1 capital ratio increased to 10.33% in Q3 2025 from 10.20% in Q3 2024, showing a 13 basis point improvement[42]. - Return on average equity rose to 9.55% in Q3 2025, up from 9.00% in Q3 2024, indicating a 55 basis point increase[42]. - The allowance for loan losses slightly increased by $1,826 thousand to $378,341 thousand[26]. Interest Income and Margin - Record net interest income of $305 million, a 2% increase from Q2 2025 and a 16% increase from Q3 2024[4]. - Total interest income increased by 3% to $556,591,000 compared to $540,318,000 in the same quarter last year[28]. - The net interest margin improved to 3.02% in 2025 from 2.77% in 2024, indicating a positive trend in profitability[35]. - The company reported a fully tax-equivalent net interest margin of 3.04% for the quarter[32]. Credit Quality - Provision for credit losses on loans was $16 million, down from $18 million in the prior quarter and $21 million in the same period last year[19]. - Nonaccrual loans decreased to $106 million, with a nonaccrual loans to total loans ratio of 0.34%, down from 0.37% in the prior quarter[21]. - Total nonaccrual loans decreased by 6% to $106,179 thousand compared to $112,999 thousand in the previous quarter[40]. - The provision for credit losses on loans was $16,000 thousand, an 11% decrease from $18,000 thousand in the previous quarter[39]. Growth and Future Expectations - The company expects period end loan growth of 5% to 6% for 2025 compared to the year ended December 31, 2024[6]. - Total earning assets increased to $39,977,990,000 in 2025 from $37,929,019,000 in 2024, representing a growth of 5.4%[35]. - Total assets as of September 30, 2025, were $44,015,203 thousand, up from $43,420,063 thousand in the previous quarter[32].

"As we look to the remainder of 2025 and into 2026, the Associated Bank franchise has strong momentum that continues to build. Our strategic plan puts us in a favorable position to grow and deepen our customer base, take market share, bolster capital, and improve our return profile—all while maintaining the disciplined approach that helped get us here." Accessibility StatementSkip Navigation GREEN BAY, Wis., Oct. 23, 2025 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today rep ...

Core Viewpoint - Associated Banc-Corp is set to release its third quarter 2025 financial results on October 23, 2025, after market close, and will host a conference call for investors and analysts at 4:00 p.m. Central Time on the same day [1]. Company Overview - Associated Banc-Corp, listed on NYSE as ASB, has total assets of $44 billion and is the largest bank holding company based in Wisconsin [3]. - The company operates nearly 200 banking locations across more than 100 communities in Wisconsin, Illinois, Minnesota, and Missouri, and has loan production offices in several other states including Indiana, Kansas, Michigan, New York, Ohio, and Texas [3]. Conference Call Details - Interested parties can access the live webcast of the earnings call through the Investor Relations section of the company's website or by dialing into the call [2]. - Financial tables and a slide presentation are expected to be available on the company's website just prior to the call, with an audio archive available approximately fifteen minutes after the call concludes [2].

Core Insights - California International Bank is experiencing a potential record year in profitability, reporting a net income of $600,000 through June 30, marking a significant turnaround after years of losses [1][10] - The bank has been released from two long-standing enforcement actions by the Office of the Comptroller of the Currency, which may facilitate its growth and operational improvements [2][14] - CEO Thanh Pham is optimistic about continued earnings growth, attributing the bank's turnaround to finding a niche in small business lending, with a portfolio growth of nearly 50% since the end of 2022 [3][4] Financial Performance - The bank's net income of $600,000 is notable given its history of only three annual profits in 20 years, with the largest being $1.5 million [1] - California International has reported zero charge-offs in 2023, 2024, and the first half of 2025, indicating strong credit quality [5] Business Strategy - The bank primarily serves small businesses with an average loan size of about $1 million, positioning itself as more accommodating than larger banks [4][5] - CEO Pham emphasizes the bank's ability to approve loans that larger banks often reject, which has contributed to its growth [5] Community and Market Potential - Located in Westminster, California, the bank serves a large Vietnamese-American community, which has a significant number of small businesses [6][12] - Despite the community's conservatism towards financial institutions, there is a growing optimism among local business owners, suggesting potential for further growth [11][12] Future Goals - CEO Pham aims to grow the bank's assets to $1 billion within five years, which would require a compound annual growth rate of 68% [10][17] - Upgrading technology and improving customer experience are priorities to compete with nonbank fintechs, as younger consumers increasingly turn to alternative financial services [15][16]

Core Insights - The article compares Associated Banc-Corp (ASB) and UMB Financial (UMBF) to determine which stock is more attractive to value investors [1] Valuation Metrics - ASB has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to UMBF, which has a Zacks Rank of 3 (Hold) [3] - ASB's forward P/E ratio is 10.19, while UMBF's forward P/E ratio is 11.80 [5] - ASB has a PEG ratio of 1.02, compared to UMBF's PEG ratio of 1.39, suggesting ASB is better positioned in terms of expected earnings growth [5] - ASB's P/B ratio is 0.96, indicating a lower market value relative to its book value, while UMBF has a P/B ratio of 1.34 [6] - Based on these valuation metrics, ASB holds a Value grade of B, while UMBF has a Value grade of D, making ASB the superior value option [6]

Core Insights - Associated Banc-Corp has been implementing a new growth strategy since 2020, focusing on sustainable organic growth and enhancing its leadership team [2][3] - The company has made significant investments in its commercial banking sector and has repositioned its balance sheet to shift from non-customer residential real estate to commercial banking [3] Company Developments - Over the past four years, Associated Banc-Corp has added nine new members to its executive leadership team [3] - The company has completed its initial phase of strategic investments, particularly in hiring and product development, with all commercial bankers now hired [4] Strategic Plan - The company is currently halfway through Phase 2 of its strategic plan, which is set to continue until 2025 [4]