#United States #Financial Growth #Associated Banc-Corp #Green Bay #Net Income

Associated Banc-Corp Reports Strong Q1 2025 Financial Results

Associated Banc-Corp, the prominent banking institution headquartered in Green Bay, Wisconsin, has reported a substantial net income of $99 million for the first quarter of 2025. This figure translates to $0.59 per common share, a notable improvement when compared to a loss of $164 million ($1.03 per share) in the preceding quarter and an increase from the $78 million in net income recorded in the same period last year.

Strong Start in 2025

The bank's President and CEO, Andy Harmening, expressed enthusiasm about the financial results, highlighting that 2025 is off to a solid start. The first quarter saw the successful implementation of several key components of their strategic plan, including significant commercial expansion, achieving a record-high net promoter score, and effectively restructuring their balance sheet as previously announced in December 2024.

The momentum from these initiatives has played a crucial role in delivering a robust financial performance marked by growth in both loans and deposits exceeding $500 million. Other highlights included a 16 basis points margin expansion and 10 basis points of capital accretion in CET1, alongside solid credit quality trends.

Overview of Key Financial Metrics

In terms of specific metrics, the first quarter of 2025 saw:

• - Diluted earnings per common share: $0.59
• - Total loans: Increased by $526 million to a total of $30.3 billion
• - Total deposits: Rose by $548 million to reach $35.2 billion
• - Net interest income: Recorded at $286 million, with a net interest margin of 2.97%
• - Noninterest expense: Amounted to $211 million, representing an efficient management of expenses during this fiscal period.

Loan and Deposit Performance

Looking at loan performance, the average total loans for the first quarter were $30.1 billion, which reflects a decrease of $91 million from the prior quarter but an increase of 3% year-over-year, up by $742 million compared to the same period last year. Growth in commercial and business lending played a significant role in this increase, rising by $250 million from the last quarter.

On the deposit side, Associated Banc-Corp reported an average deposit of $34.8 billion, indicating a 1% increase from the previous quarter, alongside a notable 5% growth year-over-year, revealing solid customer engagement and confidence in the bank's offerings.

Credit Quality and Capital Position

Strong credit quality continued to be a characteristic of Associated's operations, with provisions for credit losses totaling $13 million. While nonaccrual loans increased slightly to $135 million, the ratio of nonaccrual loans to total loans was 0.44%, underscoring the bank's prudent risk management practices.

The bank's capital position remains robust, with a Common Equity Tier 1 (CET1) capital ratio standing at 10.11%. This is well above the regulatory benchmark, showcasing the bank's commitment to maintaining a strong financial footing in light of evolving economic conditions.

Conclusion

In conclusion, Associated Banc-Corp’s strategic initiatives and robust financial results for the first quarter of 2025 highlight its strong market position and dedicated leadership. As the bank continues to navigate the broader macroeconomic environment, its solid fundamentals signal a promising outlook for the remainder of the year, with an expected loan and deposit growth forecasted at 5% to 6% and 1% to 2%, respectively.

This performance record not only reflects the effective execution of its strategic goals but also sets a strong foundation for delivering enhanced stakeholder value in 2025 and beyond.