Associated Banc-Corp Reports First Quarter 2025 Net Income Available to Common Equity of $99 Million, or $0.59 per Common Share
PR Newswire
GREEN BAY, Wis., April 24, 2025
GREEN BAY, Wis., April 24, 2025 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $99 million, or $0.59 per common share, for the quarter ended March 31, 2025. These amounts compare to a loss of $164 million, or $1.03 per common share, for the quarter ended December 31, 2024 and earnings of $78 million, or $0.52 per common share, for the quarter ended March 31, 2024.
"2025 is off to a strong start at Associated Bank," said President and CEO Andy Harmening. "During the first quarter, we achieved several key milestones of our strategic plan, completing our commercial expansion, achieving a record-high net promoter score, and finalizing the balance sheet repositioning we announced in December. Importantly, the emerging momentum from our initiatives helped us deliver another strong financial quarter, with over $500 million in loan and deposit growth, 16 basis points of margin expansion, ten basis points of CET1 capital accretion and solid credit quality trends."
"The current macroeconomic environment has added an element of uncertainty for the industry, but here at Associated, we're entering this period of uncertainty with the major investments in our strategic plan completed, a strengthened profitability profile, a solid capital position, and a foundational discipline on credit and risk management. We continue to feel well-positioned to deliver enhanced value for our stakeholders in 2025."
First Quarter 2025 Highlights (all comparisons to Fourth Quarter 2024)
-- Diluted earnings per common share of $0.59 -- Total period end loan growth of $526 million -- Total period end deposit growth of $548 million -- Total period end core customer deposit1 growth of $503 million -- Net interest income of $286 million -- Net interest margin of 2.97% -- Noninterest income of $59 million -- Noninterest expense of $211 million -- Provision for credit losses of $13 million -- Allowance for credit losses on loans / total loans of 1.34% -- Net charge offs / average loans (annualized) of 0.12%
(1) This is a non-GAAP financial measure. See financial tables for a reconciliation of non-GAAP financial measures to GAAP financial measures.
Loans
First quarter 2025 average total loans of $30.1 billion decreased $91 million from the prior quarter and increased 3%, or $742 million, from the same period last year. With respect to first quarter 2025 average balances by loan category:
-- Commercial and business lending increased $250 million from the prior
quarter and increased $908 million from the same period last year to
$11.7 billion.
-- Commercial real estate lending increased $107 million from the prior
quarter and decreased $76 million from the same period last year to $7.3
billion.
-- Consumer lending decreased $448 million from the prior quarter and
decreased $90 million from the same period last year to $11.1 billion.
First quarter 2025 period end total loans of $30.3 billion increased 2%, or $526 million, from the prior quarter and increased 3%, or $800 million, from the same period last year. With respect to first quarter 2025 period end balances by loan category:
-- Commercial and business lending increased $327 million from the prior
quarter and increased $1.1 billion from the same period last year to
$12.0 billion.
-- Commercial real estate lending increased $196 million from the prior
quarter and increased $85 million the same period last year to $7.4
billion.
-- Consumer lending increased $3 million from the prior quarter and
decreased $374 million from the same period last year to $10.8 billion.
We continue to expect 2025 period end loan growth of 5% to 6% as compared to the year ended December 31, 2024.
Deposits
First quarter 2025 average deposits of $34.8 billion increased 1%, or $496 million, from the prior quarter and increased 5%, or $1.6 billion, from the same period last year. With respect to first quarter 2025 average balances by deposit category:
-- Noninterest-bearing demand deposits decreased $98 million from the prior
quarter and decreased $242 million from the same period last year to $5.6
billion.
-- Savings increased $30 million from the prior quarter and increased $234
million from the same period last year to $5.2 billion.
-- Interest-bearing demand deposits increased $408 million from the prior
quarter and increased $542 million from the same period last year to $8.0
billion.
-- Money market deposits increased $155 million from the prior quarter and
decreased $37 million from the same period last year to $6.1 billion.
-- Total time deposits decreased $157 million from the prior quarter and
increased $873 million from the same period last year to $8.1 billion.
-- Network transaction deposits increased $157 million from the prior
quarter and increased $196 million from the same period last year to $1.8
billion.
First quarter 2025 period end deposits of $35.2 billion increased 2%, or $548 million, from the prior quarter and increased 4%, or $1.5 billion, from the same period last year. With respect to first quarter 2025 period end balances by deposit category:
-- Noninterest-bearing demand deposits increased $360 million from the prior
quarter and decreased $118 million from the same period last year to $6.1
billion.
-- Savings increased $114 million from the prior quarter and increased $123
million from the same period last year to $5.2 billion.
-- Interest-bearing demand deposits decreased $50 million from the prior
quarter and increased $328 million from the same period last year to $9.1
billion.
-- Money market deposits increased $182 million from the prior quarter and
increased $98 million from the same period last year to $6.8 billion.
-- Total time deposits decreased $59 million from the prior quarter and
increased $1.1 billion from the same period last year to $7.9 billion.
-- Network transaction deposits (included in money market and
interest-bearing demand deposits) increased $125 million from the prior
quarter and increased $90 million from the same period last year to $1.9
billion.
We continue to expect 2025 period end total deposit growth of 1% to 2% and period end core customer deposit growth of 4% to 5% as compared to the year ended December 31, 2024.
Net Interest Income and Net Interest Margin
First quarter 2025 net interest income of $286 million increased $16 million from the prior quarter and increased $28 million from the same period last year. The net interest margin increased to 2.97%, reflecting a 16 basis point increase from the prior quarter and an 18 basis point increase from the same period last year.
-- The average yield on total loans for the first quarter of 2025 decreased
15 basis points from the prior quarter and decreased 39 basis points from
the same period last year to 5.83%.
-- The average cost of total interest-bearing liabilities for the first
quarter of 2025 decreased 23 basis points from the prior quarter and
decreased 49 basis points from the same period last year to 3.06%.
-- The net free funds benefit for the first quarter of 2025 decreased 6
basis points from the prior quarter and decreased 12 basis points from
the same period last year to 0.58%.
We continue to expect total net interest income growth of 12% to 13% in 2025.
Noninterest Income
First quarter 2025 total noninterest income of $59 million increased $266 million from the prior quarter and decreased $6 million, or 10%, from the same period last year. The increase relative to the prior quarter was primarily driven by nonrecurring items recognized in the fourth quarter of 2024 as a result of the balance sheet repositioning announced in December of 2024. The decrease relative to the same period last year was primarily driven by a $7 million loss related to the settlement of the mortgage sale announced in December of 2024. With respect to first quarter 2025 noninterest income line items:
-- The Company recognized a small investment securities net gain in the
first quarter of 2025 as compared to a $148 million net loss in the prior
quarter and a $4 million net gain in the same period last year. The loss
in the prior quarter was primarily driven by a net loss on a sale of
investments recognized in the fourth quarter of 2024 as a result of the
balance sheet repositioning announced in December of 2024.
-- The Company incurred a loss on mortgage portfolio sale of $7 million in
the first quarter of 2025 as compared to a $130 million loss in the prior
quarter and no loss in the same period last year. The current and prior
quarter losses were driven by the mortgage portfolio sale as a result of
the balance sheet repositioning announced in December of 2024.
-- Capital markets, net decreased $5 million from the prior quarter and
increased slightly from the same period last year.
-- Wealth management fees decreased $2 million from the prior quarter and
increased $1 million from the same period last year.
-- Card-based fees decreased $2 million from the prior quarter and decreased
$1 million from the same period last year.
After adjusting to exclude the fourth quarter 2024 and first quarter 2025 impacts of the mortgage and investment securities sales we announced in December 2024, we continue to expect total noninterest income growth of between 0% and 1% in 2025.
Noninterest Expense
First quarter 2025 total noninterest expense of $211 million decreased $14 million from the prior quarter, driven primarily by a $14 million expense for a loss on prepayments of FHLB advances recognized in the fourth quarter of 2024 as a result of the balance sheet repositioning announced in December of 2024, and increased $13 million from the same period last year. With respect to first quarter 2025 noninterest expense line items:
-- Personnel expense decreased $2 million from the prior quarter and
increased $5 million from the same period last year.
-- Occupancy expense increased $1 million from the prior quarter and
increased $2 million from the same period last year.
-- FDIC assessment expense increased $1 million from the prior quarter and
decreased $4 million from the same period last year.
-- Other noninterest expense increased $1 million from the prior quarter and
increased $7 million from the same period last year.
After adjusting to exclude the $14 million impact of the loss on prepayments of FHLB advances recognized in the fourth quarter of 2024, we continue to expect total noninterest expense to grow by 3% to 4% in 2025.
Taxes
First quarter 2025 tax expense was $19 million compared to a $16 million tax benefit in the prior quarter and $20 million of tax expense in the same period last year. First quarter 2025 tax expense included a $6 million benefit from a partial release of a valuation allowance on deferred taxes. The tax benefit recognized in the prior quarter was primarily driven by a loss on income before income taxes as a result of nonrecurring items associated with the balance sheet repositioning announced in December 2024. The effective tax rate for the first quarter of 2025 was 16.0% compared to an effective tax rate of 19.8% in the same period last year.
We continue to expect the annual effective tax rate to be between 19% and 21% in 2025.
Credit
First quarter 2025 provision for credit losses on loans was $13 million, compared to a provision of $17 million in the prior quarter and a provision of $24 million in the same period last year. With respect to first quarter 2025 credit quality:
-- Nonaccrual loans of $135 million increased $12 million from the prior
quarter and decreased $44 million from the same period last year. The
nonaccrual loans to total loans ratio was 0.44% in the first quarter, up
from 0.41% in the prior quarter and down from 0.60% in the same period
last year.
-- First quarter 2025 net charge offs of $9 million decreased compared to
net charge offs of $12 million in the prior quarter and decreased
compared to net charge offs of $22 million in the same period last year.
-- The allowance for credit losses on loans (ACLL) of $407 million increased
$4 million compared to the prior quarter and increased $19 million
compared to the same period last year. The ACLL to total loans ratio was
1.34% in the first quarter, down from 1.35% in the prior quarter and up
from 1.31% in the same period last year.
In 2025, we continue to expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
Capital
The Company's capital position remains strong, with a CET1 capital ratio of 10.11% at March 31, 2025. The Company's capital ratios continue to be in excess of the Basel III "well-capitalized" regulatory benchmarks on a fully phased in basis.
FIRST QUARTER 2025 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 24, 2025. Interested parties can access the live webcast of the call through the Investor Relations section of the Company's website, http://investor.associatedbank.com. Parties may also dial into the call at 877-407-8037 (domestic) or 201-689-8037 (international) and request the Associated Banc-Corp first quarter 2025 earnings call. The first quarter 2025 financial tables with an accompanying slide presentation will be available on the Company's website just prior to the call. An audio archive of the webcast will be available on the Company's website approximately fifteen minutes after the call is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $43 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from nearly 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois, Minnesota and Missouri. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD-LOOKING STATEMENTS
Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "should," "intend," "target," "outlook," "project," "guidance," "forecast," or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release and related materials may contain references to measures which are not defined in generally accepted accounting principles ("GAAP"). Information concerning these non-GAAP financial measures can be found in the financial tables. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
Associated Banc-Corp
Consolidated Balance
Sheets (Unaudited)
March 31, December 31, Seql Qtr $ September 30, June 30, March 31, Comp Qtr $
($ in thousands) 2025 2024 Change 2024 2024 2024 Change
-------------------- ------------- --------------- -------------- --------------- ------------ ------------- -------------
Assets
Cash and due from
banks $ 521,323 $ 544,059 $ (22,737) $ 554,631 $ 470,818 $ 429,859 $ 91,464
Interest-bearing
deposits in other
financial
institutions 711,033 453,590 257,443 408,101 484,677 420,114 290,919
Federal funds sold
and securities
purchased under
agreements to
resell 105 21,955 (21,850) 4,310 3,600 1,610 (1,505)
Investment
securities
available for sale,
at fair value 4,796,570 4,581,434 215,136 4,152,527 3,912,730 3,724,148 1,072,422
Investment
securities held to
maturity, net, at
amortized cost 3,705,793 3,738,687 (32,894) 3,769,150 3,799,035 3,832,967 (127,174)
Equity securities 23,331 23,242 89 23,158 22,944 19,571 3,760
Federal Home Loan
Bank and Federal
Reserve Bank
stocks, at cost 194,244 179,665 14,578 178,168 212,102 173,968 20,276
Residential loans
held for sale 47,611 646,687 (599,076) 67,219 83,795 52,414 (4,803)
Commercial loans
held for sale 7,910 32,634 (24,724) 11,833 -- -- 7,910
Loans 30,294,127 29,768,586 525,541 29,990,897 29,618,271 29,494,263 799,864
Allowance for loan
losses (371,348) (363,545) (7,802) (361,765) (355,844) (356,006) (15,342)
------------- --------------- -------------- --------------- ------------ ------------- -------------
Loans, net 29,922,780 29,405,041 517,739 29,629,131 29,262,428 29,138,257 784,523
Tax credit and other
investments 254,187 258,886 (4,699) 265,385 246,300 255,252 (1,065)
Premises and
equipment, net 377,521 379,093 (1,572) 373,816 369,968 367,618 9,903
Bank and corporate
owned life
insurance 690,551 689,000 1,552 686,704 683,451 685,089 5,462
Goodwill 1,104,992 1,104,992 -- 1,104,992 1,104,992 1,104,992 --
Other intangible
assets, net 29,457 31,660 (2,203) 33,863 36,066 38,268 (8,811)
Mortgage servicing
rights, net 86,251 87,683 (1,433) 81,977 85,640 85,226 1,025
Interest receivable 159,729 167,772 (8,044) 167,777 173,106 167,092 (7,363)
Other assets 675,748 676,987 (1,239) 698,073 672,256 640,638 35,110
------------- --------------- -------------- --------------- ------------ ------------- -------------
Total assets $ 43,309,136 $ 43,023,068 $ 286,068 $ 42,210,815 $ 41,623,908 $ 41,137,084 $ 2,172,052
============= =============== ============== =============== ============ ============= =============
Liabilities and
stockholders'
equity
Noninterest-bearing
demand deposits $ 6,135,946 $ 5,775,657 $ 360,289 $ 5,857,421 $ 5,815,045 $ 6,254,135 $ (118,189)
Interest-bearing
deposits 29,060,767 28,872,777 187,990 27,696,877 26,875,995 27,459,023 1,601,744
------------- --------------- -------------- --------------- ------------ ------------- -------------
Total deposits 35,196,713 34,648,434 548,279 33,554,298 32,691,039 33,713,158 1,483,555
Short-term funding 311,335 470,369 (159,033) 917,028 859,539 765,671 (454,336)
FHLB advances 2,027,297 1,853,807 173,490 1,913,294 2,673,046 1,333,411 693,886
Other long-term
funding 591,382 837,635 (246,253) 844,342 536,113 536,055 55,327
Allowance for
unfunded
commitments 35,276 38,776 (3,500) 35,776 33,776 31,776 3,500
Accrued expenses and
other liabilities 460,574 568,485 (107,911) 532,842 588,057 588,341 (127,767)
------------- --------------- -------------- --------------- ------------ ------------- -------------
Total liabilities 38,622,578 38,417,506 205,071 37,797,579 37,381,571 36,968,412 1,654,166
Stockholders' equity
Preferred equity 194,112 194,112 -- 194,112 194,112 194,112 --
Common equity 4,492,446 4,411,450 80,996 4,219,125 4,048,225 3,974,561 517,885
------------- --------------- -------------- --------------- ------------ ------------- -------------
Total
stockholders'
equity 4,686,558 4,605,562 80,996 4,413,236 4,242,337 4,168,673 517,885
------------- --------------- -------------- --------------- ------------ ------------- -------------
Total
liabilities
and
stockholders'
equity $ 43,309,136 $ 43,023,068 $ 286,068 $ 42,210,815 $ 41,623,908 $ 41,137,084 $ 2,172,052
============= =============== ============== =============== ============ ============= =============
Numbers may not recalculate due to rounding conventions.
Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend
Seql Qtr Comp Qtr
-----------------
($ in thousands,
except per share
data) 1Q25 4Q24 $ Change % Change 3Q24 2Q24 1Q24 $ Change % Change
----------------- ----------- ------------ ----------- -------- ----------- ----------- ----------- ----------- --------
Interest income
Interest and fees
on loans $ 433,299 $ 453,253 $ (19,954) (4) % $ 465,728 $ 456,788 $ 454,472 $ (21,173) (5) %
Interest and
dividends on
investment
securities
Taxable 69,702 50,524 19,178 38 % 51,229 50,278 46,548 23,154 50 %
Tax-exempt 13,956 14,469 (513) (4) % 14,660 14,669 14,774 (818) (6) %
Other interest 8,920 10,478 (1,558) (15) % 8,701 8,539 7,595 1,325 17 %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total interest
income 525,877 528,724 (2,847) (1) % 540,318 530,274 523,388 2,489 -- %
Interest expense
Interest on
deposits 209,140 222,888 (13,748) (6) % 231,623 221,062 226,231 (17,091) (8) %
Interest on
federal funds
purchased and
securities sold
under agreements
to repurchase 3,622 3,203 419 13 % 3,385 2,303 2,863 759 27 %
Interest on other
short-term
funding -- 668 (668) (100) % 6,144 6,077 4,708 (4,708) (100) %
Interest on FHLB
advances 16,090 17,908 (1,818) (10) % 24,799 34,143 21,671 (5,581) (26) %
Interest on other
long-term
funding 11,085 13,769 (2,684) (19) % 11,858 10,096 10,058 1,027 10 %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total interest
expense 239,937 258,436 (18,499) (7) % 277,809 273,681 265,530 (25,593) (10) %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Net interest
income 285,941 270,289 15,652 6 % 262,509 256,593 257,858 28,083 11 %
Provision for
credit losses 13,003 16,986 (3,982) (23) % 20,991 23,008 24,001 (10,998) (46) %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Net interest
income after
provision for
credit losses 272,938 253,303 19,635 8 % 241,518 233,585 233,857 39,081 17 %
Noninterest
income
Wealth management
fees 22,498 24,103 (1,605) (7) % 24,144 22,628 21,694 804 4 %
Service charges
and deposit
account fees 12,814 13,232 (418) (3) % 13,708 12,263 12,439 375 3 %
Card-based fees 10,442 11,948 (1,506) (13) % 11,731 11,975 11,267 (825) (7) %
Other fee-based
revenue 5,251 5,182 68 1 % 5,057 4,857 4,402 849 19 %
Capital markets,
net 4,345 9,032 (4,687) (52) % 4,317 4,685 4,050 295 7 %
Mortgage banking,
net 3,822 3,387 435 13 % 2,132 2,505 2,662 1,160 44 %
Loss on mortgage
portfolio sale (6,976) (130,406) 123,430 (95) % -- -- -- (6,976) N/M
Bank and
corporate owned
life insurance 5,204 2,322 2,883 124 % 4,001 4,584 2,570 2,634 102 %
Asset (losses)
gains, net (878) 364 (1,242) N/M (474) (627) (306) (572) 187 %
Investment
securities gains
(losses), net 4 (148,194) 148,198 N/M 100 67 3,879 (3,875) (100) %
Other 2,251 2,257 (6) -- % 2,504 2,222 2,327 (76) (3) %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total
noninterest
income
(loss) 58,776 (206,772) 265,549 N/M 67,221 65,159 64,985 (6,209) (10) %
Noninterest
expense
Personnel 123,897 125,944 (2,047) (2) % 121,036 121,581 119,395 4,502 4 %
Technology 27,139 26,984 154 1 % 27,217 27,161 26,200 939 4 %
Occupancy 15,381 14,325 1,056 7 % 13,536 13,128 13,633 1,748 13 %
Business
development and
advertising 6,386 7,408 (1,022) (14) % 6,683 7,535 6,517 (131) (2) %
Equipment 4,527 4,729 (202) (4) % 4,653 4,450 4,599 (72) (2) %
Legal and
professional 6,083 6,861 (778) (11) % 5,639 4,429 4,672 1,411 30 %
Loan and
foreclosure
costs 2,594 1,951 642 33 % 2,748 1,793 1,979 615 31 %
FDIC assessment 10,436 9,139 1,298 14 % 8,223 7,131 13,946 (3,510) (25) %
Other intangible
amortization 2,203 2,203 -- -- % 2,203 2,203 2,203 -- -- %
Loss on
prepayments of
FHLB advances -- 14,243 (14,243) (100) % -- -- -- -- N/M
Other 11,974 10,496 1,478 14 % 8,659 6,450 4,513 7,461 165 %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total
noninterest
expense 210,619 224,282 (13,664) (6) % 200,597 195,861 197,657 12,962 7 %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Income (loss)
before income
taxes 121,095 (177,752) 298,847 N/M 108,142 102,884 101,185 19,910 20 %
Income tax
expense
(benefit) 19,409 (16,137) 35,546 N/M 20,124 (12,689) 20,016 (607) (3) %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Net income (loss) 101,687 (161,615) 263,301 N/M 88,018 115,573 81,169 20,518 25 %
Preferred stock
dividends 2,875 2,875 -- -- % 2,875 2,875 2,875 -- -- %
----------- ------------ ----------- ----------- ----------- ----------- -----------
Net income (loss)
available to
common equity $ 98,812 $ (164,490) $ 263,301 N/M $ 85,143 $ 112,698 $ 78,294 $ 20,518 26 %
=========== ============ =========== =========== =========== =========== ===========
Earnings (loss)
per common share
Basic $ 0.60 $ (1.04) $ 1.64 N/M $ 0.56 $ 0.75 $ 0.52 $ 0.08 15 %
Diluted $ 0.59 $ (1.03) $ 1.62 N/M $ 0.56 $ 0.74 $ 0.52 $ 0.07 13 %
Average common
shares
outstanding
Basic 165,228 157,710 7,518 5 % 150,247 149,872 149,855 15,373 10 %
Diluted 166,604 159,164 7,441 5 % 151,492 151,288 151,292 15,312 10 %
N/M = Not meaningful
Numbers may not recalculate due to rounding conventions.
Associated
Banc-Corp Selected
Quarterly
Information
($ in millions
except per share
data; shares
repurchased and
outstanding in
thousands) 1Q25 4Q24 3Q24 2Q24 1Q24
------------------ ---------- ---------- ---------- ---------- ----------
Per common share
data
Dividends $ 0.23 $ 0.23 $ 0.22 $ 0.22 $ 0.22
Market value:
High 25.63 28.14 23.95 22.48 22.00
Low 21.06 20.64 20.07 19.90 19.73
Close 22.53 23.90 21.54 21.15 21.51
Book value / share 27.09 26.55 27.90 26.85 26.37
Tangible book
value / share 20.25 19.71 20.37 19.28 18.78
------------------ ---------- ---------- ---------- ---------- ----------
Performance ratios
(annualized)
Return on average
assets 0.97 % (1.53) % 0.85 % 1.13 % 0.80 %
Noninterest
expense / average
assets 2.00 % 2.12 % 1.93 % 1.92 % 1.95 %
Effective tax rate 16.03 % N/M 18.61 % (12.33) % 19.78 %
Dividend payout
ratio(a) 38.33 % N/M 39.29 % 29.33 % 42.31 %
Net interest
margin 2.97 % 2.81 % 2.78 % 2.75 % 2.79 %
------------------ ---------- ---------- ---------- ---------- ----------
Selected trend
information
Average full time
equivalent
employees(b) 4,006 3,982 4,041 4,025 4,070
Branch count 183 188 188 188 188
Assets under
management, at
market value(c) $ 14,685 $ 14,773 $ 15,033 $ 14,304 $ 14,171
Mortgage portfolio
serviced for
others $ 6,243 $ 6,285 $ 6,302 $ 6,307 $ 6,349
Mortgage servicing
rights, net /
mortgage
portfolio
serviced for
others 1.38 % 1.40 % 1.30 % 1.36 % 1.34 %
Shares repurchased
during period(d) 900 -- -- -- 900
Shares
outstanding, end
of period 165,807 166,178 151,213 150,785 150,739
------------------ ---------- ---------- ---------- ---------- ----------
Selected quarterly
ratios
Loans / deposits 86.07 % 85.92 % 89.38 % 90.60 % 87.49 %
Stockholders'
equity / assets 10.82 % 10.70 % 10.46 % 10.19 % 10.13 %
------------------ ---------- ---------- ---------- ---------- ----------
Risk-based
capital(e)(f)
Total
risk-weighted
assets $ 33,801 $ 33,950 $ 33,326 $ 32,768 $ 32,753
Common equity Tier
1 $ 3,417 $ 3,397 $ 3,238 $ 3,172 $ 3,089
Common equity Tier
1 capital ratio 10.11 % 10.01 % 9.72 % 9.68 % 9.43 %
Tier 1 capital
ratio 10.68 % 10.58 % 10.30 % 10.27 % 10.02 %
Total capital
ratio 12.75 % 12.61 % 12.36 % 12.34 % 12.08 %
Tier 1 leverage
ratio 8.69 % 8.73 % 8.49 % 8.37 % 8.24 %
N/M = Not meaningful
Numbers may not recalculate due to rounding conventions.
(a) Ratio is based upon basic earnings per common share.
(b) Average full time equivalent employees without overtime.
(c) Excludes assets held in brokerage accounts.
(d) Does not include repurchases related to tax withholding on equity
compensation.
(e) The Federal Reserve establishes regulatory capital requirements,
including well-capitalized standards for the Corporation. The regulatory
capital requirements effective for the Corporation follow Basel III,
subject to certain transition provisions.
(f) March 31, 2025 data is estimated.
Associated Banc-Corp
Selected Asset Quality Information
Seql Comp
Qtr % Qtr %
($ in thousands) Mar 31, 2025 Dec 31, 2024 Change Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Change
------------------ ------------- ------------- ------ ------------- ------------- ------------- -------
Allowance for loan
losses
Balance at
beginning of
period $ 363,545 $ 361,765 -- % $ 355,844 $ 356,006 $ 351,094 4 %
Provision for loan
losses 16,500 14,000 18 % 19,000 21,000 27,000 (39) %
Charge offs (13,714) (13,770) -- % (15,337) (23,290) (24,018) (43) %
Recoveries 5,017 1,551 N/M 2,258 2,127 1,930 160 %
------------- ------------- ------------- ------------- -------------
Net (charge offs)
recoveries (8,698) (12,220) (29) % (13,078) (21,163) (22,088) (61) %
------------- ------------- ------------- ------------- -------------
Balance at end of
period $ 371,348 $ 363,545 2 % $ 361,765 $ 355,844 $ 356,006 4 %
============= ============= ============= ============= =============
Allowance for
unfunded
commitments
Balance at
beginning of
period $ 38,776 $ 35,776 8 % $ 33,776 $ 31,776 $ 34,776 12 %
Provision for
unfunded
commitments (3,500) 3,000 N/M 2,000 2,000 (3,000) 17 %
------------- ------------- ------------- ------------- -------------
Balance at end of
period $ 35,276 $ 38,776 (9) % $ 35,776 $ 33,776 $ 31,776 11 %
------------- ------------- ------------- ------------- -------------
Allowance for
credit losses on
loans (ACLL) $ 406,624 $ 402,322 1 % $ 397,541 $ 389,620 $ 387,782 5 %
============= ============= ============= ============= =============
Provision for
credit losses on
loans $ 13,000 $ 17,000 (24) % $ 21,000 $ 23,000 $ 24,000 (46) %
Seql Comp
Qtr % Qtr %
($ in thousands) Mar 31, 2025 Dec 31, 2024 Change Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Change
------------------ ------------- ------------- ------ ------------- ------------- ------------- -------
Net (charge offs)
recoveries
Commercial and
industrial $ (4,726) $ (2,406) 96 % $ (10,649) $ (13,676) $ (18,638) (75) %
Commercial real
estate--owner
occupied -- -- N/M -- 1 2 (100) %
------------- ------------- ------------- ------------- -------------
Commercial and
business
lending (4,726) (2,406) 96 % (10,649) (13,674) (18,636) (75) %
Commercial real
estate--investor (892) (6,617) (87) % (1) (4,569) -- N/M
Real estate
construction 30 4 N/M 2 28 30 -- %
------------- ------------- ------------- ------------- -------------
Commercial real
estate lending (863) (6,612) (87) % 2 (4,541) 30 N/M
------------- ------------- ------------- ------------- -------------
Total
commercial (5,589) (9,018) (38) % (10,647) (18,216) (18,606) (70) %
------------- ------------- ------------- ------------- -------------
Residential
mortgage 197 (239) N/M (160) (289) (62) N/M
Auto finance (1,519) (1,782) (15) % (1,281) (1,480) (2,094) (27) %
Home equity 289 277 4 % 424 238 211 37 %
Other consumer (2,076) (1,457) 42 % (1,414) (1,417) (1,537) 35 %
------------- ------------- ------------- ------------- -------------
Total consumer (3,109) (3,202) (3) % (2,431) (2,947) (3,482) (11) %
------------- ------------- ------------- ------------- -------------
Total net
(charge offs)
recoveries $ (8,698) $ (12,220) (29) % $ (13,078) $ (21,163) $ (22,088) (61) %
(In basis points) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
------------------ ------------- ------------- ------ ------------- ------------- ------------- -------
Net (charge offs)
recoveries to
average loans
(annualized)
Commercial and
industrial (18) (9) (43) (55) (77)
Commercial real
estate--owner
occupied -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Commercial and
business
lending (16) (8) (39) (50) (69)
Commercial real
estate--investor (7) (51) -- (37) --
Real estate
construction 1 -- -- -- 1
------------- ------------- ------------- ------------- -------------
Commercial real
estate lending (5) (37) -- (25) --
------------- ------------- ------------- ------------- -------------
Total
commercial (12) (19) (23) (40) (41)
------------- ------------- ------------- ------------- -------------
Residential
mortgage 1 (1) (1) (1) --
Auto finance (22) (26) (19) (24) (35)
Home equity 18 17 26 15 14
Other consumer (268) (208) (216) (221) (232)
------------- ------------- ------------- ------------- -------------
Total consumer (11) (11) (8) (10) (13)
------------- ------------- ------------- ------------- -------------
Total net
(charge offs)
recoveries (12) (16) (18) (29) (30)
Seql Comp
Qtr % Qtr %
($ in thousands) Mar 31, 2025 Dec 31, 2024 Change Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Change
------------------ ------------- ------------- ------ ------------- ------------- ------------- -------
Credit quality
Nonaccrual loans $ 134,808 $ 123,260 9 % $ 128,476 $ 154,423 $ 178,346 (24) %
Other real estate
owned (OREO) 23,475 20,217 16 % 18,830 8,325 8,437 178 %
Repossessed assets 688 687 -- % 793 671 1,241 (45) %
------------- ------------- ------------- ------------- -------------
Total
nonperforming
assets $ 158,971 $ 144,164 10 % $ 148,098 $ 163,418 $ 188,025 (15) %
Loans 90 or more
days past due and
still accruing $ 3,036 $ 3,189 (5) % $ 7,107 $ 2,354 $ 2,417 26 %
Allowance for
credit losses on
loans to total
loans 1.34 % 1.35 % 1.33 % 1.32 % 1.31 %
Allowance for
credit losses on
loans to
nonaccrual loans 301.63 % 326.40 % 309.43 % 252.31 % 217.43 %
Nonaccrual loans
to total loans 0.44 % 0.41 % 0.43 % 0.52 % 0.60 %
Nonperforming
assets to total
loans plus OREO
and repossessed
assets 0.52 % 0.48 % 0.49 % 0.55 % 0.64 %
Nonperforming
assets to total
assets 0.37 % 0.34 % 0.35 % 0.39 % 0.46 %
Annualized
year-to-date net
charge offs
(recoveries) to
year-to-date
average loans 0.12 % 0.23 % 0.25 % 0.30 % 0.30 %
Associated Banc-Corp
Selected Asset Quality Information (continued)
Seql
Qtr % Comp Qtr %
($ in thousands) Mar 31, 2025 Dec 31, 2024 Change Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Change
----------------- ---------------- ---------------- ------- ---------------- ---------------- ---------------- ----------
Nonaccrual loans
Commercial and
industrial $ 12,898 $ 19,084 (32) % $ 14,369 $ 21,190 $ 72,243 (82) %
Commercial real
estate--owner
occupied 1,501 1,501 -- % 9,285 1,851 2,090 (28) %
---------------- ---------------- ---------------- ---------------- ----------------
Commercial and
business
lending 14,399 20,585 (30) % 23,654 23,041 74,333 (81) %
Commercial real
estate--investor 31,689 16,705 90 % 18,913 48,249 18,697 69 %
Real estate
construction 125 30 N/M 15 16 18 N/M
---------------- ---------------- ---------------- ---------------- ----------------
Commercial real
estate lending 31,814 16,735 90 % 18,928 48,265 18,715 70 %
---------------- ---------------- ---------------- ---------------- ----------------
Total
commercial 46,213 37,320 24 % 42,582 71,306 93,047 (50) %
---------------- ---------------- ---------------- ---------------- ----------------
Residential
mortgage 72,455 70,038 3 % 70,138 68,058 69,954 4 %
Auto finance 7,692 7,402 4 % 7,456 6,986 7,158 7 %
Home equity 8,275 8,378 (1) % 8,231 7,996 8,100 2 %
Other consumer 173 122 42 % 70 77 87 99 %
---------------- ---------------- ---------------- ---------------- ----------------
Total consumer 88,595 85,941 3 % 85,894 83,117 85,299 4 %
---------------- ---------------- ---------------- ---------------- ----------------
Total
nonaccrual
loans $ 134,808 $ 123,260 9 % $ 128,476 $ 154,423 $ 178,346 (24) %
Seql
Qtr % Comp Qtr %
Mar 31, 2025 Dec 31, 2024 Change Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Change
----------------- ---------------- ---------------- ------- ---------------- ---------------- ---------------- ----------
Restructured
loans
(accruing)(a)
Commercial and
industrial $ 459 $ 475 (3) % $ 424 $ 410 $ 377 22 %
Commercial real
estate--owner
occupied -- -- N/M -- -- -- N/M
---------------- ---------------- ---------------- ---------------- ----------------
Commercial and
business
lending 459 475 (3) % 424 410 377 22 %
Commercial real
estate--investor -- -- N/M -- -- -- N/M
Real estate
construction -- -- N/M -- -- -- N/M
---------------- ---------------- ---------------- ---------------- ----------------
Commercial real
estate lending -- -- N/M -- -- -- N/M
---------------- ---------------- ---------------- ---------------- ----------------
Total
commercial 459 475 (3) % 424 410 377 22 %
---------------- ---------------- ---------------- ---------------- ----------------
Residential
mortgage 599 782 (23) % 361 306 345 74 %
Auto finance 1 8 (88) % 35 142 66 (98) %
Home equity 171 27 N/M 104 103 182 (6) %
Other consumer 2,421 2,239 8 % 1,642 1,615 1,487 63 %
---------------- ---------------- ---------------- ---------------- ----------------
Total consumer 3,192 3,057 4 % 2,141 2,166 2,080 53 %
---------------- ---------------- ---------------- ---------------- ----------------
Total
restructured
loans
(accruing) $ 3,651 $ 3,531 3 % $ 2,565 $ 2,576 $ 2,457 49 %
================ ================ ================ ================ ================
Nonaccrual
restructured
loans (included
in nonaccrual
loans) $ 3,451 $ 2,581 34 % $ 1,840 $ 717 $ 1,141 N/M
Seql
Qtr % Comp Qtr %
Mar 31, 2025 Dec 31, 2024 Change Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Change
----------------- ---------------- ---------------- ------- ---------------- ---------------- ---------------- ----------
Accruing loans
30-89 days past
due
Commercial and
industrial $ 7,740 $ 1,260 N/M $ 1,212 $ 2,052 $ 521 N/M
Commercial real
estate--owner
occupied 1,156 1,634 (29) % 2,209 -- -- N/M
---------------- ---------------- ---------------- ---------------- ----------------
Commercial and
business
lending 8,896 2,893 N/M 3,421 2,052 521 N/M
Commercial real
estate--investor 2,463 36,391 (93) % 10,746 1,023 19,164 (87) %
Real estate
construction -- 21 (100) % 88 -- 1,260 (100) %
---------------- ---------------- ---------------- ---------------- ----------------
Commercial real
estate lending 2,463 36,412 (93) % 10,834 1,023 20,424 (88) %
---------------- ---------------- ---------------- ---------------- ----------------
Total
commercial 11,360 39,305 (71) % 14,255 3,075 20,945 (46) %
---------------- ---------------- ---------------- ---------------- ----------------
Residential
mortgage 13,568 14,892 (9) % 13,630 10,374 9,903 37 %
Auto finance 12,522 14,850 (16) % 15,458 15,814 12,521 -- %
Home equity 3,606 4,625 (22) % 3,146 3,694 2,819 28 %
Other consumer(b) 2,381 3,128 (24) % 2,163 1,995 2,260 5 %
---------------- ---------------- ---------------- ---------------- ----------------
Total consumer 32,076 37,496 (14) % 34,397 31,877 27,503 17 %
---------------- ---------------- ---------------- ---------------- ----------------
Total accruing
loans 30-89
days past
due $ 43,435 $ 76,801 (43) % $ 48,651 $ 34,952 $ 48,448 (10) %
================ ================ ================ ================ ================
N/M = Not meaningful
Numbers may not recalculate due to rounding conventions.
(a) Balances depict loans that have been modified in the preceding 12 months
for each respective period end.
(b) Excluding guaranteed student loans.
Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter
Three Months Ended
---------------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024 March 31, 2024
----------------------------------- ------------------------------------ ------------------------------------
Interest Average Interest Average Interest Average
Average Income / Yield Average Income / Yield / Average Income / Yield /
($ in thousands) Balance Expense /Rate Balance Expense Rate Balance Expense Rate
-------------------- ------------ ------------ ------- ------------ ------------ -------- -------------- ----------- -------
Assets
Earning assets
Loans (a) (b)
Commercial and
business lending $ 11,724,484 $ 185,985 6.43 % $ 11,474,489 $ 194,355 6.74 % $ 10,816,255 $ 194,090 7.22 %
Commercial real
estate lending 7,313,994 121,034 6.71 % 7,206,796 128,476 7.09 % 7,389,962 138,850 7.56 %
------------ ------------ ------------ ------------ -------------- -----------
Total commercial 19,038,479 307,020 6.54 % 18,681,285 322,831 6.88 % 18,206,217 332,940 7.35 %
Residential mortgage 7,256,320 66,823 3.68 % 7,814,056 70,513 3.61 % 7,896,956 68,787 3.48 %
Auto finance 2,844,730 39,176 5.59 % 2,771,414 39,365 5.65 % 2,373,720 32,603 5.52 %
Other retail 971,453 20,826 8.63 % 935,162 21,041 8.98 % 892,128 20,661 9.28 %
------------ ------------ ------------ ------------ -------------- -----------
Total loans 30,110,982 433,844 5.83 % 30,201,918 453,750 5.98 % 29,369,022 454,991 6.22 %
Investment
securities
Taxable 6,398,584 69,919 4.37 % 5,745,085 50,752 3.53 % 5,517,023 46,727 3.39 %
Tax-exempt(a) 2,016,144 17,666 3.50 % 2,085,957 17,653 3.39 % 2,133,352 18,024 3.38 %
Other short-term
investments 757,227 9,111 4.88 % 846,195 10,717 5.04 % 576,782 8,311 5.80 %
------------ ------------ ------------ ------------ -------------- -----------
Total investments
and other 9,171,955 96,696 4.22 % 8,677,238 79,122 3.64 % 8,227,158 73,062 3.55 %
------------ ------------ ------------ ------------ -------------- -----------
Total earning
assets 39,282,937 $ 530,540 5.45 % 38,879,155 $ 532,871 5.46 % 37,596,179 $ 528,053 5.64 %
Other assets, net 3,347,690 3,192,406 3,173,027
------------ ------------ --------------
Total assets $ 42,630,627 $ 42,071,562 $ 40,769,206
============ ============ ==============
Liabilities and
stockholders'
equity
Interest-bearing
liabilities
Interest-bearing
deposits
Savings $ 5,162,468 $ 17,929 1.41 % $ 5,132,247 $ 20,120 1.56 % $ 4,928,031 $ 21,747 1.77 %
Interest-bearing
demand 8,031,707 45,430 2.29 % 7,623,230 46,061 2.40 % 7,490,119 49,990 2.68 %
(MORE TO FOLLOW) Dow Jones Newswires
April 24, 2025 16:15 ET (20:15 GMT)
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