ASB Q3 Earnings Beat as Provisions Decline, Fee Income View Raised

Core Insights - Associated Banc-Corp's (ASB) Q3 2025 earnings per share (EPS) of 73 cents exceeded the Zacks Consensus Estimate of 66 cents and improved from 56 cents in the prior-year quarter [1][9] - The increase in net income available to common shareholders was 43% year over year, reaching $122 million, surpassing the estimate of $106.1 million [2] Revenue and Expenses - Total revenues for the quarter were $391 million, reflecting a 20% year-over-year increase and beating the Zacks Consensus Estimate of $375.91 million [3] - Net interest income (NII) reached a record $305 million, up 16% year over year, driven by higher commercial lending volumes and improved deposit mix management [4] - Non-interest income totaled $81 million, increasing 21%, primarily due to higher capital markets revenues and fees [5] - Non-interest expenses rose 8% to $216 million, mainly due to increased personnel and technology costs, exceeding the estimate of $209.3 million [5] Efficiency and Credit Quality - The efficiency ratio improved to 54.77%, down from 59.51% in the prior-year quarter, indicating enhanced profitability [6] - The provision for credit losses was $16 million, down from $21 million in the prior-year quarter, with total non-performing assets decreasing by 8% [8] Loans and Deposits - Total loans as of September 30, 2025, were $31.0 billion, up 1% sequentially, while total deposits rose 2% to $34.9 billion [7] Capital Ratios and Outlook - The Tier 1 risk-based capital ratio improved to 10.89%, up from 10.30% in the corresponding period of 2024 [10] - Management expects loans to grow at 5-6% and total core customer deposits to rise by 4-5% in 2025 [11] - Non-interest income is projected to increase by 5-6%, up from the previous guidance of 1-2% [12]