Record Quarterly Net Interest Income Drives Associated Banc-Corp's Second Quarter 2025 Earnings per Common Share of $0.65

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]