Associated Banc-p(US:ASB)2025-07-24 20:17Financial 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].