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]

Core Insights - Associated Banc-Corp reported revenue of $366.98 million for the quarter ended June 2025, reflecting a year-over-year increase of 12.7% [1] - The company's EPS was $0.65, up from $0.52 in the same quarter last year, exceeding the consensus estimate of $0.62 by 4.84% [1] - The revenue surpassed the Zacks Consensus Estimate of $362.81 million, resulting in a surprise of +1.15% [1] Financial Metrics - Total earning assets averaged $40.07 billion, exceeding the average estimate of $39.56 billion [4] - Net Interest Margin remained stable at 3%, matching the average estimate [4] - Annualized year-to-date net charge offs to average loans were 0.2%, consistent with analyst estimates [4] - Total nonperforming assets were reported at $148.17 million, lower than the estimated $161.65 million [4] - Adjusted efficiency ratio was 57.2%, slightly above the average estimate of 56.4% [4] - Net Interest Income (FTE) was $304.23 million, surpassing the average estimate of $296.03 million [4] - Bank and corporate owned life insurance revenue was $4.14 million, below the estimate of $4.33 million [4] - Capital markets net revenue was $5.77 million, exceeding the average estimate of $4.36 million [4] - Mortgage banking net revenue was $4.21 million, above the estimated $3.74 million [4] - Card-based fees were reported at $11.2 million, slightly higher than the estimate of $11.03 million [4] - Service charges and deposit accounts fees reached $13.15 million, exceeding the average estimate of $12.92 million [4] - Wealth management fees were $23.03 million, above the estimated $22.43 million [4] Stock Performance - Shares of Associated Banc-Corp have returned +8% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Associated Banc-Corp reported quarterly earnings of $0.65 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.52 per share a year ago, indicating a positive earnings surprise of +4.84% [1] Financial Performance - The company achieved revenues of $366.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.15%, and up from $325.5 million year-over-year [2] - Over the last four quarters, Associated Banc-Corp has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance - Since the beginning of the year, Associated Banc-Corp shares have increased by approximately 8.4%, compared to the S&P 500's gain of 8.1% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $369.87 million, and for the current fiscal year, it is $2.50 on revenues of $1.46 billion [7] - The company's favorable estimate revisions trend prior to the earnings release has resulted in a Zacks Rank 2 (Buy), suggesting expected outperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which Associated Banc-Corp belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - The company reported earnings of $0.65 per share for Q2 2025, with total loans growing by 1% quarter-over-quarter and 3% year-over-year [9] - Net interest income reached a record $300 million, up $43 million or 17% compared to the same period last year [10][11] - The return on tangible common equity was 12.96%, a 62 basis point improvement from Q1 [12] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew by over $700 million in the first half of 2025, with $356 million added in Q2 alone [6][10] - Total average quarterly loans increased by nearly $400 million versus Q1, with C&I leading the growth [14] - Non-interest income for Q2 was $67 million, a 3% increase year-over-year [22] Market Data and Key Metrics Changes - Core customer deposits were up 4.3% compared to the same period last year, despite seasonal outflows in Q2 [10][15] - The net interest margin climbed above 3%, reflecting a strong profitability profile [13] Company Strategy and Development Direction - The company is focused on executing its strategic plan, which includes enhancing profitability through a mix shift in its asset base [5][12] - There is a strong emphasis on organic growth in customer relationships, with the best organic checking household growth in nearly a decade [5][16] - The company aims to reduce reliance on wholesale funding by increasing lower-cost core customer deposits [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow core customer deposits in the second half of the year, citing strong household growth trends and a growing commercial pipeline [10][16] - The management remains vigilant regarding credit quality, with a proactive approach to managing portfolios amid macroeconomic uncertainties [8][30] Other Important Information - The company added nine basis points to its CET1 capital in Q2, totaling a 19 basis point increase year-to-date [7] - The efficiency ratio improved to below 56%, the lowest level since early 2023 [23] Q&A Session Summary Question: Seasonal decline in deposits - Management acknowledged the seasonal decline but noted that it was anticipated and that they expect a rebound in the second half of the year due to a growing commercial pipeline [36][39] Question: Update on office CRE portfolio - Management indicated that the office CRE portfolio is evolving positively, with proactive clients benefiting from improvements [46][48] Question: Margin outlook and deposit pricing strategy - Management discussed the importance of asset-side growth in maintaining margin strength and emphasized disciplined pricing strategies for deposits [53][59] Question: Thoughts on acquisitions - Management stated that any potential acquisition would need to be a good strategic, financial, and cultural fit, emphasizing the priority of executing their current strategic plan [68][70] Question: Increase in ACL for C&I portfolio - Management explained that the increase in the allowance for credit losses (ACL) for the C&I portfolio is primarily due to growth in that segment [72] Question: Sustainability of positive operating leverage - Management expressed confidence in sustaining positive operating leverage into 2026, driven by growth in commercial loans and disciplined expense management [79][81]

Financial Data and Key Metrics Changes - The company reported earnings of $0.65 per share for Q2 2025, with total loans growing by 1% quarter over quarter and 3% year over year [8][10] - Net interest income reached $300 million, marking a 17% increase compared to the same period last year, and was the highest in the company's history [10][18] - The return on tangible common equity was 12.96%, reflecting a 62 basis point improvement from Q1 [12] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew by over $700 million in the first half of 2025, with $356 million added in Q2 alone [6][9] - Total average quarterly loans increased by nearly $400 million compared to Q1, driven primarily by C&I growth [14] - Non-interest income for Q2 was $67 million, a 3% increase year over year, with fee-based revenues and capital markets income contributing to this growth [11][23] Market Data and Key Metrics Changes - Core customer deposits were up 4.3% compared to the same period last year, despite seasonal outflows in Q2 [10][15] - The net interest margin climbed above 3%, with a 29 basis point increase year over year [13][18] - The securities book increased to $9 billion, with an overall yield of 4.24% [22] Company Strategy and Development Direction - The company is focused on executing its strategic plan, which includes enhancing profitability through a mix shift in its asset base and deepening customer relationships [5][12] - The strategy involves replacing lower-yielding residential mortgage loans with higher-yielding C&I loans, aiming for total bank loan growth of 5% to 6% for the year [12][15] - The company remains open to potential acquisitions but emphasizes that any opportunity must align strategically, financially, and culturally with its goals [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow core customer deposits in the second half of the year, citing strong household growth trends and a growing commercial pipeline [16][41] - The management team remains vigilant regarding credit quality, with a proactive approach to managing portfolios amid macroeconomic uncertainties [7][30] - The company expects net interest income growth of 14-15% in 2025, assuming three Fed rate cuts [20] Other Important Information - The company added 19 basis points to its CET1 capital so far in 2025, reflecting a strong capital position [7][25] - Non-accrual loans decreased by 16%, indicating improved credit quality [11][31] - The efficiency ratio improved to below 56%, the lowest level since early 2023 [24] Q&A Session Summary Question: Seasonal decline in deposits - Management acknowledged the seasonal decline but noted that it was anticipated and that the commercial pipeline for deposits has increased significantly [38][40] Question: Update on office CRE portfolio - Management indicated that the office CRE portfolio is evolving positively, with proactive clients benefiting from improvements [47][49] Question: Margin outlook and deposit pricing strategy - Management discussed the importance of asset remixing for margin strength and emphasized disciplined pricing strategies for deposits [54][60] Question: Thoughts on acquisitions - Management reiterated that any acquisition would need to be a good strategic, financial, and cultural fit, while focusing on executing the current strategic plan [68][70] Question: ACL increase for C&I portfolio - Management explained that the increase in the allowance for credit losses (ACL) for the C&I portfolio is due to growth in that segment, reflecting a proactive risk management approach [71][72]

Second Quarter 2025 Earnings Presentation July 24, 2025 Associated Banc-Corp Important Disclosures Forward-looking statements: Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation's results of operations. These non- GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance ...

Financial Performance - Associated Banc-Corp reported net income of $108 million, or $0.65 per common share, for Q2 2025, compared to $99 million, or $0.59 per share in Q1 2025, and $113 million, or $0.74 per share in Q2 2024[1]. - Noninterest income for Q2 2025 was $67 million, an increase of $8 million from Q1 2025[14]. - Income before income taxes increased by 36% to $139,629,000 in Q2 2025, compared to $102,884,000 in Q2 2024[28]. - Net income available to common equity decreased by 4% to $108,355,000 in Q2 2025, down from $112,698,000 in Q2 2024[28]. - Adjusted net income available to common equity was $210,470 thousand in Jun 2025, compared to $194,296 thousand in Jun 2024, reflecting an increase of 8.3%[45]. Interest Income and Margin - The company achieved record net interest income of $300 million, reflecting a 5% increase from Q1 2025 and a 17% increase from Q2 2024[4]. - Total interest income increased by 3% year-over-year to $545,536,000 in Q2 2025, compared to $530,274,000 in Q2 2024[28]. - Net interest income rose by 17% to $300,000,000 in Q2 2025, up from $256,593,000 in Q2 2024[28]. - The net interest margin increased to 3.04%, a 7 basis point increase from Q1 2025 and a 29 basis point increase from Q2 2024[10]. - The fully tax-equivalent net interest margin was 3.04%, up from 2.97% in the previous quarter and 2.75% a year ago[38]. Loans and Deposits - Total period end loans reached $30.6 billion, up 1% from Q1 2025 and 3% from Q2 2024[4]. - Total period end deposits were $34.1 billion, down 3% from Q1 2025 but up 4% from Q2 2024[9]. - Total loans increased to $30.30 billion in 2025, generating interest income of $882.16 million, a yield of 5.86%, compared to $29.47 billion and $912.30 million in 2024 with a yield of 6.22%[41]. - Total deposits decreased to $34,147,565 thousand in Jun 2025 from $35,196,713 thousand in Jun 2024[45]. - Commercial and industrial loans rose by 3% to $11,281,964 compared to the previous quarter, with a year-over-year increase of 13%[43]. Noninterest Expense - Total noninterest expense was $209 million, a decrease of $1 million from Q1 2025, with an expected growth of 4% to 5% in 2025[15]. - Total noninterest expense rose by 7% to $209,352,000 in Q2 2025, up from $195,861,000 in Q2 2024[28]. - Noninterest expense for Jun 2025 was $419,971, an increase from $393,518 in Jun 2024, reflecting a year-over-year increase of 6.1%[48]. Credit Quality - The provision for credit losses on loans was $18 million, compared to $13 million in Q1 2025 and $23 million in Q2 2024[19]. - The allowance for loan losses increased by $5.2 million to $376.5 million, reflecting a slight increase in risk provisions[26]. - Provision for credit losses was $30,999 thousand in Jun 2025, compared to $47,009 thousand in Jun 2024, indicating a decrease of 34.3%[45]. - Total nonaccrual loans decreased by 16% to $112,999 thousand from $134,808 thousand in the prior quarter[36]. Capital Ratios - The CET1 capital ratio stood at 10.20% as of June 30, 2025, exceeding Basel III regulatory benchmarks[20]. - Average stockholders' equity to average assets increased to 10.88% in Jun 2025 from 10.20% in Jun 2024[45]. - The common equity Tier 1 capital ratio improved to 10.20%, compared to 10.11% in the previous quarter[31]. Operational Efficiency - The fully tax-equivalent efficiency ratio improved to 57.70% in Jun 2025 from 60.03% in Jun 2024, showing enhanced operational efficiency[48]. - The adjusted efficiency ratio for Jun 2025 was 57.15%, compared to 58.85% in Jun 2024, reflecting a positive trend in cost management[48].

Core Insights - Associated Banc-Corp reported a net income of $108 million, or $0.65 per common share, for Q2 2025, showing a slight increase from $99 million in Q1 2025 but a decrease from $113 million in Q2 2024 [1][9][23] - The company experienced strong momentum in C&I loan growth, achieving over $350 million in the second quarter, alongside a 7 basis point margin expansion, leading to the highest quarterly net interest income in its history [2][10] Financial Performance - **Earnings**: Net income available to common equity was $108 million, or $0.65 per share, compared to $99 million ($0.59 per share) in Q1 2025 and $113 million ($0.74 per share) in Q2 2024 [1][9] - **Net Interest Income**: Q2 2025 net interest income reached $300 million, up $14 million from Q1 2025 and $43 million from Q2 2024, with a net interest margin of 3.04% [8][9] - **Loans**: Average total loans for Q2 2025 were $30.5 billion, a 1% increase from the prior quarter and a 3% increase from the same period last year [5][9] - **Deposits**: Average deposits decreased by 2% from the prior quarter to $34.2 billion but increased by 5% from the same period last year [6][9] Growth Projections - The company expects total net interest income growth of 14% to 15% for 2025, driven by balance sheet growth and favorable market conditions [10] - Loan growth is anticipated to be between 5% to 6% for the year compared to the end of 2024 [5][9] - Deposit growth is projected to be between 1% to 3%, with core customer deposit growth expected at 4% to 5% [6][9] Capital and Credit Quality - The CET1 capital ratio stood at 10.20% as of June 30, 2025, indicating a strong capital position above regulatory benchmarks [15] - The provision for credit losses was $18 million, reflecting a stable credit quality environment [14][21] Noninterest Income and Expense - Total noninterest income for Q2 2025 was $67 million, an increase from the prior quarter and the same period last year [11][9] - Noninterest expense decreased slightly by $1 million from the prior quarter to $209 million, but increased by $13 million from the same period last year [12][9]

Associated Banc-Corp (ASB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 24, might help the stock move higher if these key numbers are better than exp ...