- Associated Banc-Corp (ASB, Financial) reports Q1 2025 net income of $99 million, or $0.59 per share, marking a turnaround from a Q4 2024 loss.
- Q1 2025 witnessed a robust loan growth of $526 million and deposit growth of $548 million.
- The net interest margin expanded to 2.97%, up 16 basis points from the previous quarter, indicating improved financial health.
Associated Banc-Corp (ASB) has announced a solid financial performance for the first quarter of 2025, reporting a net income of $99 million, or $0.59 per common share. This marks a significant improvement from a loss of $164 million in Q4 2024 and compares favorably to the $78 million earned in Q1 2024.
Strong fundamentals underpin the bank's performance, with total loans increasing by $526 million and deposits growing by $548 million in the same quarter. Notably, commercial and business lending led the way, rising by $327 million quarter-over-quarter and a substantial $1.1 billion year-over-year, showcasing the bank's successful commercial expansion strategy.
Net interest income rose to $286 million, with a notable expansion in the net interest margin to 2.97%, an improvement of 16 basis points compared to the prior quarter. This rise occurred despite a decrease in the average yield on loans by 15 basis points to 5.83%, reflecting effective cost management as interest-bearing liability costs decreased by 23 basis points to 3.06%.
Credit quality remains strong, with net charge-offs at 0.12% of average loans, a decrease from both 0.14% in Q4 2024 and 0.30% a year earlier. Despite a slight increase from the previous quarter, the nonaccrual loan ratio of 0.44% is significantly better than the 0.60% reported a year ago.
Further solidifying its financial position, Associated Banc-Corp maintains a robust Common Equity Tier 1 (CET1) ratio of 10.11%, providing the bank flexibility to support future growth and return value to shareholders. The bank's forward guidance reflects confidence in continuing growth, with an expected loan growth of 5-6%, net interest income growth of 12-13%, and total deposit growth of 1-2% for the full year 2025.
CEO Andy Harmening expressed optimism about the bank's strategic advances and readiness to enhance stakeholder value, emphasizing the completion of key strategic initiatives, including balance sheet repositioning, commercial expansion, and achieving a record-high net promoter score. These milestones underscore Associated Banc-Corp's preparedness to navigate the uncertain macroeconomic environment.
