"We've continued to see promising results driven by the strategic growth investments we've made across our company," said President & CEO Andy Harmening. "Here in the third quarter, we posted nearly $300 million in C&I loan growth, over $700 million in deposit growth, and strong revenue results including record-high net interest income. We also delivered solid credit performance and expanded CET1 capital by another 13 basis points."
"As we look to the remainder of 2025 and into 2026, the Associated Bank franchise has strong momentum that continues to build. Our strategic plan puts us in a favorable position to grow and deepen our customer base, take market share, bolster capital, and improve our return profile—all while maintaining the disciplined approach that helped get us here."
Third Quarter 2025 Highlights
Diluted earnings per common share of $0.73
Record net interest income of $305 million (+2% vs. 2Q 2025; +16% vs. 3Q 2024)
Total period end loans of $31.0 billion (+1% vs. 2Q 2025; +3% vs. 3Q 2024)
Total period end deposits of $34.9 billion (+2% vs. 2Q 2025; +4% vs. 3Q 2024)
Total period end core customer deposits1 of $28.9 billion (+2% vs. 2Q 2025; +4% vs. 3Q 2024)
Net interest margin of 3.04%
Noninterest income of $81 million
Noninterest expense of $216 million
Provision for credit losses of $16 million
Allowance for credit losses on loans / total loans of 1.34%
Net charge offs / average loans (annualized) of 0.17%
Book value / share of $28.17
Tangible book value / share1 of $21.36
Loans
Third quarter 2025 average total loans of $30.8 billion increased 1%, or $258 million, from the prior quarter and increased 4%, or $1.1 billion, from the same period last year. With respect to third quarter 2025 average balances by loan category:
Commercial and business lending increased $378 million from the prior quarter and increased $1.5 billion from the same period last year to $12.5 billion.
Commercial real estate lending decreased $160 million from the prior quarter and increased $57 million from the same period last year to $7.3 billion.
Consumer lending increased $40 million from the prior quarter and decreased $442 million from the same period last year to $11.0 billion.
Third quarter 2025 period end total loans of $31.0 billion increased 1%, or $344 million, from the prior quarter and increased 3%, or $961 million, from the same period last year. With respect to third quarter 2025 period end balances by loan category:
Commercial and business lending increased $334 million from the prior quarter and increased $1.3 billion from the same period last year to $12.7 billion.
Commercial real estate lending increased $8 million from the prior quarter and increased $143 million the same period last year to $7.3 billion.
Consumer lending increased $3 million from the prior quarter and decreased $520 million from the same period last year to $10.9 billion.
We continue to expect 2025 period end loan growth of 5% to 6% as compared to the year ended December 31, 2024.
Deposits
Third quarter 2025 average deposits of $34.7 billion increased 1%, or $503 million, from the prior quarter and increased 4%, or $1.4 billion, from the same period last year. With respect to third quarter 2025 average balances by deposit category:
Noninterest-bearing demand deposits increased $148 million from the prior quarter and increased $144 million from the same period last year to $5.8 billion.
Savings increased $115 million from the prior quarter and increased $213 million from the same period last year to $5.3 billion.
Interest-bearing demand deposits increased $215 million from the prior quarter and increased $504 million from the same period last year to $7.9 billion.
Money market deposits decreased $128 million from the prior quarter and decreased $81 million from the same period last year to $5.9 billion.
Brokered CDs decreased $174 million from the prior quarter and decreased $332 million from the same period last year to $3.9 billion.
Other time deposits increased $236 million from the prior quarter and increased $647 million from the same period last year to $4.0 billion.
Network transaction deposits increased $90 million from the prior quarter and increased $289 million from the same period last year to $1.9 billion.
Third quarter 2025 period end deposits of $34.9 billion increased 2%, or $734 million, from the prior quarter and increased 4%, or $1.3 billion, from the same period last year. With respect to third quarter 2025 period end balances by deposit category:
Noninterest-bearing demand deposits increased $124 million from the prior quarter and increased $49 million from the same period last year to $5.9 billion.
Savings increased $89 million from the prior quarter and increased $308 million from the same period last year to $5.4 billion.
Interest-bearing demand deposits increased $301 million from the prior quarter and increased $490 million from the same period last year to $7.8 billion.
Money market deposits decreased $130 million from the prior quarter and decreased $46 million from the same period last year to $5.8 billion.
Brokered CDs decreased $116 million from the prior quarter and decreased $286 million from the same period last year to $4.0 billion.
Other time deposits increased $244 million from the prior quarter and increased $366 million from the same period last year to $4.0 billion.
Network transaction deposits increased $222 million from the prior quarter and increased $447 million from the same period last year to $2.0 billion.
Core customer deposits1 increased $628 million from the prior quarter and increased $1.2 billion from the same period last year to $28.9 billion.
We continue to expect 2025 period end total deposit growth of 1% to 3% and period end core customer deposit growth of 4% to 5% as compared to the year ended December 31, 2024.
1 This is a non-GAAP financial measure. See financial tables for a reconciliation of non-GAAP financial measures to GAAP financial measures.
Net Interest Income and Net Interest Margin
Third quarter 2025 net interest income of $305 million increased $5 million from the prior quarter and increased $43 million from the same period last year. The net interest margin of 3.04% was flat from the prior quarter and a 26 basis point increase from the same period last year.
The average yield on total loans for the third quarter of 2025 remained flat from the prior quarter and decreased 38 basis points from the same period last year to 5.89%.
The average cost of total interest-bearing liabilities for the third quarter of 2025 increased 1 basis point from the prior quarter and decreased 56 basis points from the same period last year to 3.03%.
The net free funds benefit for the third quarter of 2025 increased 1 basis point from the prior quarter and decreased 12 basis points from the same period last year to 0.57%.
Based on our latest forecasts for balance sheet growth and mix, and current market conditions, we continue to expect total net interest income growth of 14% to 15% in 2025.
Noninterest Income
Third quarter 2025 total noninterest income of $81 million increased $14 million from the prior quarter and increased $14 million from the same period last year. With respect to third quarter 2025 noninterest income line items:
Capital markets, net increased $5 million from the prior quarter and increased $6 million from the same period last year.
Wealth management fees increased $2 million from the prior quarter and increased $1 million from the same period last year.
Card-based fees increased $1 million from the prior quarter and increased $1 million from the same period last year.
Asset gains (losses), net increased $5 million from the prior quarter and increased $4 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 now expect total noninterest income growth of between 5% and 6% in 2025.
Noninterest Expense
Third quarter 2025 total noninterest expense of $216 million increased $7 million from the prior quarter and increased $16 million from the same period last year. With respect to third quarter 2025 noninterest expense line items:
Personnel expense increased $9 million from the prior quarter and increased $15 million from the same period last year.
Business development and advertising expense increased $1 million from the prior quarter and increased $2 million from the same period last year.
Technology expense increased $2 million from the prior quarter and increased $1 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 now expect total noninterest expense to grow by 5% to 6% in 2025.
Taxes
Third quarter 2025 tax expense was $30 million, compared to $28 million of tax expense in the prior quarter and $20 million of tax expense in the same period last year. The effective tax rate for the third quarter of 2025 was 19.16%, compared to 20.34% in the prior quarter and 18.61% in the same period last year.
We now expect the annual effective tax rate to be between 18% and 19% in 2025.
Credit
Third quarter 2025 provision for credit losses on loans was $16 million, compared to a provision of $18 million in the prior quarter and a provision of $21 million in the same period last year. With respect to third quarter 2025 credit quality:
Nonaccrual loans of $106 million decreased $7 million from the prior quarter and decreased $22 million from the same period last year. The nonaccrual loans to total loans ratio was 0.34% in the third quarter, down from 0.37% in the prior quarter and down from 0.43% in the same period last year.
Third quarter 2025 net charge offs of $13 million were flat compared to net charge offs of $13 million in the prior quarter and net charge offs of $13 million in the same period last year.
The allowance for credit losses on loans (ACLL) of $415 million increased $3 million compared to the prior quarter and increased $17 million compared to the same period last year. The ACLL to total loans ratio was 1.34% in the third quarter, down from 1.35% in the prior quarter and up from 1.33% 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 10.33% at September 30, 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.
THIRD 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, October 23, 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 third quarter 2025 earnings call. The third 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 $44 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)
(Dollars in thousands)
September 30, 2025
June 30, 2025
Sequential Quarter Change
March 31, 2025
December 31, 2024
September 30, 2024
ComparableQuarter Change
Assets
Cash and due from banks
$ 490,431
$ 521,167
$ (30,736)
$ 521,323
$ 544,059
$ 554,631
$ (64,200)
Interest-bearing deposits in other financial institutions
802,251
738,938
63,313
711,033
453,590
408,101
394,150
Federal funds sold and securities purchased under agreements to resell
90
—
90
105
21,955
4,310
(4,220)
Available for sale (AFS) investment securities, at fair value
5,217,278
5,036,508
180,770
4,796,570
4,581,434
4,152,527
1,064,751
Held to maturity (HTM) investment securities, net, at amortized cost
3,636,080
3,672,101
(36,021)
3,705,793
3,738,687
3,769,150
(133,070)
Equity securities
26,000
25,912
88
23,331
23,242
23,158
2,842
Federal Home Loan Bank (FHLB) and Federal Reserve Bank stocks, at cost
251,642
278,356
(26,714)
194,244
179,665
178,168
73,474
Residential loans held for sale
74,563
96,804
(22,241)
47,611
646,687
67,219
7,344
Commercial loans held for sale
—
8,406
(8,406)
7,910
32,634
11,833
(11,833)
Loans
30,951,964
30,607,605
344,359
30,294,127
29,768,586
29,990,897
961,067
Allowance for loan losses
(378,341)
(376,515)
(1,826)
(371,348)
(363,545)
(361,765)
(16,576)
Loans, net
30,573,623
30,231,091
342,532
29,922,780
29,405,041
29,629,131
944,492
Tax credit and other investments
245,239
247,111
(1,872)
254,187
258,886
265,385
(20,146)
Premises and equipment, net
384,139
377,372
6,767
377,521
379,093
373,816
10,323
Bank and corporate owned life insurance
693,511
691,470
2,041
690,551
689,000
686,704
6,807
Goodwill
1,104,992
1,104,992
—
1,104,992
1,104,992
1,104,992
—
Other intangible assets, net
25,052
27,255
(2,203)
29,457
31,660
33,863
(8,811)
Mortgage servicing rights, net
85,063
85,245
(182)
86,251
87,683
81,977
3,086
Interest receivable
168,451
168,627
(176)
159,729
167,772
167,777
674
Other assets
677,458
682,373
(4,915)
675,748
676,987
698,073
(20,615)
Total assets
$ 44,455,863
$ 43,993,729
$ 462,134
$ 43,309,136
$ 43,023,068
$ 42,210,815
$ 2,245,048
Liabilities and stockholders' equity
Noninterest-bearing demand deposits
$ 5,906,251
$ 5,782,487
$ 123,764
$ 6,135,946
$ 5,775,657
$ 5,857,421
$ 48,830
Interest-bearing deposits
28,975,602
28,365,079
610,523
29,060,767
28,872,777
27,696,877
1,278,725
Total deposits
34,881,853
34,147,565
734,288
35,196,713
34,648,434
33,554,298
1,327,555
Short-term funding
399,665
75,585
324,080
311,335
470,369
917,028
(517,363)
FHLB advances
3,220,679
3,879,489
(658,810)
2,027,297
1,853,807
1,913,294
1,307,385
Other long-term funding
594,074
593,530
544
591,382
837,635
844,342
(250,268)
Allowance for unfunded commitments
36,276
35,276
1,000
35,276
38,776
35,776
500
Accrued expenses and other liabilities
455,019
481,503
(26,484)
460,574
568,485
532,842
(77,823)
Total liabilities
39,587,565
39,212,948
374,617
38,622,578
38,417,506
37,797,579
1,789,986
Stockholders' equity
Preferred equity
194,112
194,112
—
194,112
194,112
194,112
—
Common equity
4,674,186
4,586,669
87,517
4,492,446
4,411,450
4,219,125
455,061
Total stockholders' equity
4,868,298
4,780,781
87,517
4,686,558
4,605,562
4,413,236
455,061
Total liabilities and stockholders' equity
$ 44,455,863
$ 43,993,729
$ 462,134
$ 43,309,136
$ 43,023,068
$ 42,210,815
$ 2,245,048
Numbers may not recalculate due to rounding conventions.
Associated Banc-Corp
Consolidated Statements of Income (Unaudited)
Comparable Quarter
Year to Date (YTD)
Comparable YTD
(Dollars in thousands, except per share data)
3Q25
3Q24
Dollar Change
Percentage Change
September 2025
September 2024
Dollar Change
Percentage Change
Interest income
Interest and fees on loans
$ 455,623
$ 465,728
$ (10,105)
(2) %
$ 1,336,703
$ 1,376,988
$ (40,285)
(3) %
Interest and dividends on investment securities
Taxable
73,727
51,229
22,498
44 %
214,689
148,055
66,634
45 %
Tax-exempt
13,888
14,660
(772)
(5) %
41,746
44,103
(2,357)
(5) %
Other interest
13,353
8,701
4,652
53 %
35,274
24,834
10,440
42 %
Total interest income
556,591
540,318
16,273
3 %
1,628,412
1,593,980
34,432
2 %
Interest expense
Interest on deposits
202,344
231,623
(29,279)
(13) %
609,139
678,916
(69,777)
(10) %
Interest on federal funds purchased and securities sold under agreements to repurchase
2,107
3,385
(1,278)
(38) %
7,733
8,551
(818)
(10) %
Interest on other short-term funding
212
6,144
(5,932)
(97) %
907
16,929
(16,022)
(95) %
Interest on FHLB advances
35,965
24,799
11,166
45 %
86,944
80,612
6,332
8 %
Interest on other long-term funding
10,741
11,858
(1,117)
(9) %
32,526
32,012
514
2 %
Total interest expense
251,369
277,809
(26,440)
(10) %
737,250
817,021
(79,771)
(10) %
Net interest income
305,222
262,509
42,713
16 %
891,163
776,960
114,203
15 %
Provision for credit losses
16,000
20,991
(4,991)
(24) %
46,999
68,000
(21,001)
(31) %
Net interest income after provision for credit losses
289,223
241,518
47,705
20 %
844,164
708,960
135,204
19 %
Noninterest income
Wealth management fees
25,315
24,144
1,171
5 %
70,837
68,466
2,371
3 %
Service charges and deposit account fees
13,861
13,708
153
1 %
39,822
38,410
1,412
4 %
Card-based fees
12,308
11,731
577
5 %
33,950
34,973
(1,023)
(3) %
Other fee-based revenue
5,414
5,057
357
7 %
15,659
14,316
1,343
9 %
Capital markets, net
10,764
4,317
6,447
149 %
20,873
13,052
7,821
60 %
Mortgage banking, net
3,541
2,132
1,409
66 %
11,577
7,299
4,278
59 %
Loss on mortgage portfolio sale
—
—
—
N/M
(6,976)
—
(6,976)
N/M
Bank and corporate owned life insurance
4,051
4,001
50
1 %
13,391
11,156
2,235
20 %
Asset gains (losses), net
3,340
(474)
3,814
N/M
727
(1,407)
2,134
N/M
Investment securities gains, net
1
100
(99)
(99) %
13
4,047
(4,034)
(100) %
Other
2,670
2,504
166
7 %
7,147
7,054
93
1 %
Total noninterest income
81,265
67,221
14,044
21 %
207,019
197,365
9,654
5 %
Noninterest expense
Personnel
135,703
121,036
14,667
12 %
386,593
362,012
24,581
7 %
Technology
28,590
27,217
1,373
5 %
82,237
80,579
1,658
2 %
Occupancy
12,757
13,536
(779)
(6) %
40,782
40,297
485
1 %
Business development and advertising
8,362
6,683
1,679
25 %
22,496
20,735
1,761
8 %
Equipment
4,368
4,653
(285)
(6) %
13,389
13,702
(313)
(2) %
Legal and professional
5,232
5,639
(407)
(7) %
17,989
14,740
3,249
22 %
Loan and foreclosure costs
1,638
2,748
(1,110)
(40) %
6,937
6,519
418
6 %
FDIC assessment
9,980
8,223
1,757
21 %
30,124
29,300
824
3 %
Other intangible amortization
2,203
2,203
—
— %
6,608
6,608
—
— %
Other
7,369
8,659
(1,290)
(15) %
29,017
19,622
9,395
48 %
Total noninterest expense
216,202
200,597
15,605
8 %
636,173
594,115
42,058
7 %
Income before income taxes
154,286
108,142
46,144
43 %
415,010
312,211
102,799
33 %
Income tax expense
29,554
20,124
9,430
47 %
77,362
27,451
49,911
182 %
Net income
124,732
88,018
36,714
42 %
337,648
284,760
52,888
19 %
Preferred stock dividends
2,875
2,875
—
— %
8,625
8,625
—
— %
Net income available to common equity
$ 121,857
$ 85,143
$ 36,714
43 %
$ 329,023
$ 276,135
$ 52,888
19 %
Pre-tax pre-provision income(a)
170,286
129,133
41,153
32 %
462,009
380,211
81,798
22 %
Earnings per common share
Basic
$ 0.73
$ 0.56
$ 0.17
30 %
$ 1.98
$ 1.83
$ 0.15
8 %
Diluted
$ 0.73
$ 0.56
$ 0.17
30 %
$ 1.96
$ 1.82
$ 0.14
8 %
Average common shares outstanding
Basic
165,029
150,247
14,782
10 %
165,064
149,993
15,071
10 %
Diluted
166,703
151,492
15,211
10 %
166,645
151,244
15,401
10 %
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) This is a non-GAAP financial measure. See the non-GAAP financial measures reconciliation below for a reconciliation to GAAP financial measures.
Associated Banc-CorpConsolidated Statements of Income (Unaudited) - Quarterly Trend
(Dollars and shares in thousands, except per share data)
Sequential Quarter
3Q25
2Q25
Dollar Change
Percentage Change
1Q25
4Q24
3Q24
Interest income
Interest and fees on loans
$ 455,623
$ 447,781
$ 7,842
2 %
$ 433,299
$ 453,253
$ 465,728
Interest and dividends on investment securities
Taxable
73,727
71,174
2,553
4 %
69,788
50,524
51,229
Tax-exempt
13,888
13,902
(14)
— %
13,956
14,469
14,660
Other interest
13,353
12,679
674
5 %
9,243
10,478
8,701
Total interest income
556,591
545,536
11,055
2 %
526,285
528,724
540,318
Interest expense
Interest on deposits
202,344
197,656
4,688
2 %
209,140
222,888
231,623
Interest on federal funds purchased and securities sold under agreements to repurchase
2,107
2,004
103
5 %
3,622
3,203
3,385
Interest on other short-term funding
212
287
(75)
(26) %
408
668
6,144
Interest on FHLB advances
35,965
34,889
1,076
3 %
16,090
17,908
24,799
Interest on other long-term funding
10,741
10,700
41
— %
11,085
13,769
11,858
Total interest expense
251,369
245,536
5,833
2 %
240,345
258,436
277,809
Net interest income
305,222
300,000
5,222
2 %
285,941
270,289
262,509
Provision for credit losses
16,000
17,996
(1,996)
(11) %
13,003
16,986
20,991
Net interest income after provision for credit losses
289,223
282,004
7,219
3 %
272,938
253,303
241,518
Noninterest income
Wealth management fees
25,315
23,025
2,290
10 %
22,498
24,103
24,144
Service charges and deposit account fees
13,861
13,147
714
5 %
12,814
13,232
13,708
Card-based fees
12,308
11,200
1,108
10 %
10,442
11,948
11,731
Other fee-based revenue
5,414
4,995
419
8 %
5,251
5,182
5,057
Capital markets, net
10,764
5,765
4,999
87 %
4,345
9,032
4,317
Mortgage banking, net
3,541
4,213
(672)
(16) %
3,822
3,387
2,132
Loss on mortgage portfolio sale
—
—
—
N/M
(6,976)
(130,406)
—
Bank and corporate owned life insurance
4,051
4,135
(84)
(2) %
5,204
2,322
4,001
Asset gains (losses), net
3,340
(1,735)
5,075
N/M
(878)
364
(474)
Investment securities gains (losses), net
1
7
(6)
(86) %
4
(148,194)
100
Other
