Associated Banc-p(US:ASB)2026-01-22 21:16Financial Performance - Associated Banc-Corp reported record annual net income available to common equity of $463 million, or $2.77 per common share for 2025, compared to $112 million, or $0.72 per common share for 2024[1]. - The company achieved record net interest income of $1.2 billion, reflecting a 15% increase from 2024, with a net interest margin of 3.03%[12]. - Noninterest income for 2025 was $286 million, significantly impacted by nonrecurring items from a balance sheet repositioning[15]. - Full year 2025 noninterest expense was $856 million, a 5% increase from 2024, with personnel expenses rising by $34 million[20]. - Net income for Q4 2025 was $137,129,000, a turnaround from a loss of $161,615,000 in Q4 2024, with year-to-date net income of $474,777,000[35]. - Earnings per common share for Q4 2025 was $0.81, compared to a loss of $1.04 in Q4 2024, with year-to-date earnings of $2.79[35]. - The corporation's return on average tangible common equity (ROATCE) improved to 12.31% from previous periods, indicating enhanced profitability[56]. Loan and Deposit Growth - Total period end loans reached $31.2 billion, a 5% increase from 2024, while total period end deposits were $35.6 billion, up 3% from the previous year[4]. - The bank's loans increased by $211.7 million to $31.2 billion compared to the previous quarter, reflecting a year-over-year growth of $1.4 billion[33]. - Total deposits rose by $670.8 million to $35.6 billion, marking a significant increase of $904.2 million year-over-year[33]. - Total loans increased to $30.59 billion in 2025, up from $29.70 billion in 2024, reflecting a growth of 3.0%[40]. - Total deposits rose by 2% quarter-over-quarter to $35,552,608, compared to $34,881,853[42]. Credit Quality and Provision for Losses - The provision for credit losses for 2025 was $54 million, down from $85 million in the prior year, indicating improved credit quality[25]. - Provision for credit losses decreased by 59% to $6,998,000 in Q4 2025, resulting in a year-to-date reduction of 36% to $53,996,000[35]. - The provision for loan losses decreased significantly by 87% to $2,000 from $15,000 in the previous quarter[45]. - Nonaccrual loans decreased by 5% to $100,428 from 106,179 in the previous quarter[46]. - The allowance for credit losses on loans to total loans ratio remained stable at 1.35%[46]. Capital and Regulatory Ratios - The company's CET1 capital ratio stood at 10.49% as of December 31, 2025, exceeding Basel III regulatory benchmarks[26]. - Common equity Tier 1 capital ratio improved to 10.49% in Q4 2025, compared to 10.33% in Q4 2024, showing a 1.55% increase[48]. - Stockholders' equity increased by $107.0 million to $5.0 billion, reflecting strong capital management strategies[33]. - Total risk-weighted assets reached $35.13 billion as of December 31, 2025, up from $34.69 billion a year earlier, representing a 1.27% increase[48]. Future Expectations - For 2026, the company expects total period end loan growth of 5% to 6% and total deposit growth of 5% to 6%, excluding the impact of the acquisition of American National Corporation[6][11]. - The company anticipates total net interest income growth of 5.5% to 6.5% in 2026, excluding the acquisition impact[14]. - The expected annual effective tax rate for 2026 is projected to be between 19% and 21%[24]. Strategic Transactions - The company is actively pursuing a proposed transaction with American National Bank, which may impact future operations and financial performance[30]. - The corporation announced a definitive agreement to acquire American National, incurring nonrecurring costs associated with the acquisition[55]. Operational Efficiency - Management emphasizes the importance of non-GAAP financial measures to provide a clearer understanding of ongoing operations and earnings adequacy[31]. - The efficiency ratio improved to 56.29% in Q4 2025, down from 67.64% in Q4 2024, indicating a 16.67% improvement[48].