Associated Banc-Corp Reports Quarterly Results for the Period Ended September 30, 2025

Press release · 2025-10-28 22:30

Associated Banc-Corp reported its quarterly financial results for the period ended September 30, 2025. The company’s net income was $123.1 million, a decrease of 12.1% compared to the same period last year. Total revenue was $343.4 million, a decrease of 5.6% year-over-year. The decline in net income was primarily due to a decrease in non-interest income and an increase in non-interest expense. The company’s net interest income was $234.1 million, a decrease of 3.4% compared to the same period last year. Associated Banc-Corp’s total assets were $34.4 billion, a decrease of 2.1% compared to September 30, 2024. The company’s common equity tier 1 capital ratio was 9.4%, exceeding the regulatory minimum requirement.

Overview of the Company’s Financial Performance

The Corporation reported strong financial results for the first nine months of 2025, with net income of $337.6 million, up 19% from the same period in 2024. Net income available to common equity was $329.0 million, or $1.98 per basic share and $1.96 per diluted share. The increase in net income was driven by growth in net interest income, higher noninterest income, and lower provision for credit losses, partially offset by higher noninterest expense.

Revenue and Profit Trends

Net interest income increased 15% year-over-year, driven by higher earning asset yields and lower funding costs. The net interest margin expanded to 3.02% from 2.77% in the prior year period.
Noninterest income increased 5% year-over-year, primarily due to higher capital markets revenue and mortgage banking income. This was partially offset by a loss on the sale of the mortgage portfolio as part of the balance sheet repositioning.
Provision for credit losses decreased $18.5 million, or 27%, from the prior year period due to improved credit quality and macroeconomic conditions.
Noninterest expense increased 7% year-over-year, mainly from higher personnel costs and legal/professional fees.

Strengths and Weaknesses

Strengths:

Strong net interest income growth from balance sheet optimization and higher-yielding loans
Diversified revenue streams with growth in fee-based businesses like capital markets and mortgage banking
Improving credit quality and lower provision for credit losses

Weaknesses:

Elevated noninterest expense growth, particularly in personnel costs
One-time loss on mortgage portfolio sale as part of balance sheet repositioning

Outlook

The Corporation is well-positioned for continued growth and profitability. Key focus areas include:

Maintaining momentum in commercial and industrial lending while optimizing the balance sheet
Expanding fee-based businesses like capital markets and wealth management
Disciplined expense management to offset inflationary pressures
Prudent credit risk management as the economic environment evolves

Overall, the Corporation delivered solid financial performance in the first nine months of 2025 by executing on its strategic initiatives. The outlook remains positive, though the Corporation will need to carefully manage expenses and credit risk going forward.