Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2025 Earnings Presentation
27 slides from Associated Banc-corp's earnings presentation, Oct 23, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation October 23, 2025 Associated Banc-Corp
Slide 2: Important Disclosures
Important Disclosures 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 f
Slide 3: Third Quarter 2025 Results
Third Quarter 2025 Results1 ASB reported net income available to common equity of $122 million, or $0.73 per common share ▪ Total loans of $31.0 billion ▪ +1.1% vs. 2Q 2025; +3.2% vs. 3Q 2024 $0.73 ▪ Total C&I loans of $11.6 billion Diluted Earnings Per Common Share ▪ +2.5% vs. 2Q 2025; +12.8% vs. 3
Slide 4: Our Strategic Plan is Delivering Growth & Profitability
Our Strategic Plan is Delivering Growth & Profitability1 Growing & remixing our balance sheet simultaneously sets up for enhanced profitability in 2025 & 2026 Period End Commercial & Industrial Loans Bolstered Key Leadership ($ in billions) $11.3 $11.6 $10.6 $10.9 $9.8 $9.7 $8.5 Expanded Commercial
Slide 5: Quarterly Loan Trends
Quarterly Loan Trends Total period end loans increased 1% vs. 2Q 2025, led by C&I growth of $286 million Average Quarterly Loans Period End Loan Change (6/30/2025 to 9/30/2025) ($ in billions) ($ in millions) $30.8 Total Loans +$344 (+1%) $30.2 $30.1 $30.5 $29.6 Commercial & Industrial $286 $11.0 $1
Slide 6: Quarterly Deposit & Funding Trends
Quarterly Deposit & Funding Trends Total deposits & core customer deposits1 both grew 2% vs. the prior quarter Average Quarterly Deposits Period End Funding Change (6/30/2025 to 9/30/2025) ($ in billions) ($ in millions) $34.3 $34.8 $34.2 $34.7 Total Deposits +$734 (+2%) $33.3 $5.7 $5.6 $5.6 $5.8 Co
Slide 7: Average Yield Trends
Average Yield Trends 3Q earning asset yields & interest-bearing deposit costs were both flat vs. the prior quarter Quarterly Average Yields Asset & Liability Yield / Rate Trends (%) (%) 7.52 7.09 7.27 6.71 6.75 6.74 6.74 6.43 6.50 6.45 5.68 5.50 5.50 5.46 5.45 5.72 5.65 5.63 5.59 5.58 4.22 4.24 4.26
Slide 8: Net Interest Income & Net Interest Margin Trends
Net Interest Income & Net Interest Margin Trends Net interest income increased by $5 million vs. the prior quarter to $305 million ($ in millions) $305 $300 $286 $270 $263 3.04% 3.04% 2.97% 2.81% 2.78% 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 Quarterly Net Interest Income Quarterly Net Interest Margi
Slide 9: Interest Rate Risk Management
Interest Rate Risk Management1 We’ve taken proactive steps to reduce our asset sensitivity & protect NII in a falling rate environment Contractual Funding Obligations Estimated NII Sensitivity Profile (%) ($ in billions) (12-Month Ramp, Dynamic Forecast) 1-3 3+ ≤ 1 Yr. Yrs. Yrs. Total 9.2 Time Depos
Slide 10: Cash & Investment Securities Portfolio
Cash & Investment Securities Portfolio We continue to target securities + cash / total assets of 22% to 24% in 2025 Period End Investment Securities Average Investment Securities Yields ($ in billions) 4.22% 4.24% 4.26% $9.0 $9.1 $8.5 $8.7 $0.3 3.66% 3.64% $0.3 $8.1 $0.2 $0.2 $0.2 $3.7 $3.6 $3.7 $3.
Slide 11: Noninterest Income Trends
Noninterest Income Trends 3Q GAAP noninterest income increased 21% vs. the prior quarter, led by capital markets, wealth & asset gains Quarterly Noninterest Income Trends ($ in millions) $81 $72 $67 $67 $15 $10 $59 $4 $11 $3 $10 $2 $5 $4 $11 $4 $9 $4 $4 $6 $12 $12 $12 $10 $11 $14 $13 $13 $14 $13 $24
Slide 12: Noninterest Expense Trends
Noninterest Expense Trends Noninterest expense was up $7 million vs. 2Q, with the increase largely attributable to performance Noninterest Expense Trends Efficiency Ratio ($ in millions) (%) 103.1 $224 $216 59.5 59.5 60.1 59.7 58.6 55.8 55.8 54.8 54.8 $14 $211 $209 $201 $29 $34 $34 $33 $31 $10 $9 $1
Slide 13: Capital Profile
Capital Profile We continue to target a CET1 range of 10% to 10.5% in 2025 Regulatory Capital Ratios Additional Capital Ratios (%) (%) 10.25 10.37 10.43 10.51 12.94 10.00 12.36 7.82 7.96 8.06 8.18 7.50 10.89 10.33 10.30 9.72 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 Total Common Equity / Total Assets
Slide 14: Allowance for Credit Losses on Loans (ACLL)
Allowance for Credit Losses on Loans (ACLL) Our ACLL percentage decreased by 1 basis point vs. the prior quarter to 1.34% ACLL1 Update ACLL / Total Loans (%) ▪ ACLL increased $3 million from the prior quarter to $415 million, driven primarily by loan growth plus some incremental credit 1.33 1.35 1.3
Slide 15: Credit Quality Trends
Credit Quality Trends 3Q 2025 credit quality remained solid with decreases in delinquencies & nonaccruals, stable NCOs Total Delinquent Loans Nonaccrual Loans ($ in millions) ($ in millions) $128 $123 $135 $80 $113 $24 $14 $106 $56 $21 $32 $7 $47 $52 $52 $19 $17 $16 $13 $7 $77 $49 $38 $49 $86 $86 $8
Slide 16: FY 2025 Outlook
FY 2025 Outlook Previous FY 2025 Updated FY 2025 Guidance1 Guidance1 Total Loans Up 5% to 6% No change Total Deposits Up 1% to 3% No change Core Customer Deposits2 Up 4% to 5% No change Net Interest Income Up 14% to 15% No change Effective Tax Rate 19% to 21% 18% to 19% CET1 Capital Ratio 10% to 10.
Slide 17: Appendix
Appendix
Slide 18: Stable, Granular Deposit Portfolio
Stable, Granular Deposit Portfolio As of 9/30/2025, ASB’s total liquidity sources covered 179% of uninsured, uncollateralized deposits Period End Deposit Trends (Associated Bank, N.A.) Liquidity Sources ($ in billions) ($ in millions) $34.9 $35.2 $34.9 6/30/2025 9/30/2025 $33.8 $34.2 Federal Reserve
Slide 19: Additional Quarterly Loan Trends
Additional Quarterly Loan Trends Period End Quarterly Loan Trends Average Loan Change (2Q 2025 to 3Q 2025) ($ in billions) ($ in millions) $30.6 $31.0 Total Loans +$258 (+1%) $30.0 $29.8 $30.3 Commercial & Industrial $386 $11.4 $11.7 $12.0 $12.4 $12.7 CRE-Construction $122 Auto Finance $68 $7.2 $7.2
Slide 20: Additional Quarterly Deposit & Funding Trends
Additional Quarterly Deposit & Funding Trends Period End Quarterly Deposits Quarterly Average Funding Change (2Q25 to 3Q25) ($ in billions) ($ in millions) $35.2 Total Deposits +$503 (+1%) $34.6 $34.1 $34.9 $33.6 Core Customer Deposits1 +$587 (+2%) $5.8 $6.1 $5.9 $5.9 $5.8 Customer CDs $236 $8.0 $7.
Slide 21: Total Loans Outstanding Balances as of September 30, 2025
Total Loans Outstanding Balances as of September 30, 2025 ($ in millions) % of Total % of Total 1 1 9/30/2025 Loans 9/30/2025 Loans 2 C&BL (by NAICS ) CRE (by property type) Utilities $ 2,923 9.4% Multi-Family $ 3,179 10.3% Manufacturing & Wholesale Trade 2,781 9.0% Industrial 1,716 5.5% Real Estate
Slide 22: Loan Stratification Outstanding Balances as of September 30, 2025
Loan Stratification Outstanding Balances as of September 30, 2025 Illinois Illinois Minnesota Minnesota 19% 9% 14% 7% Minnesota Texas Illinois Other 9% 6% 14% Midwest2 20% Other C&BL by Midwest 2 Other CRE by Wisconsin 21% Geography 9% Wisconsin Total Midwest 2 12% Geography $12.7 billion 28% Loans1
Slide 23: High-Quality Commercial Real Estate Portfolio
High-Quality Commercial Real Estate Portfolio1 ASB has built a diversified CRE portfolio by partnering with well-known developers in stable Midwest markets CRE Credit Quality 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 Portfolio LTV 58% 57% 57% 57% 58% Com'l & Delinquencies3/Loans 0.22% 0.50% 0.03% 0.17% 0.19% Co
Slide 24: High-Quality Consumer Loan Portfolio
High-Quality Consumer Loan Portfolio1 94% of our $10.9 billion consumer loan portfolio is prime / super prime Period End Consumer Loans Prime/Super Prime Consumer Loan Portfolio ($ in millions) % of Total 8% 9/30/2025 Loans 6% Super Prime (720+) Residential Mortgage $6,858 22.2% Portfolio Prime (660
Slide 25: Reconciliation & Definitions of Non-GAAP Items
Reconciliation & Definitions of Non-GAAP Items Period End Loans Reconciliation ($ in thousands) 3Q 2025 Total loans $30,951,964 Mortgage portfolio loans sold in 1Q 2025 694,985 Total adjusted loans $31,646,949 Period End Core Customer Deposits Reconciliation ($ in thousands) 3Q 2025 2Q 2025 1Q 2025
Slide 26: Reconciliation & Definitions of Non-GAAP Items
Reconciliation & Definitions of Non-GAAP Items Return on Average Tangible Common Equity (ROATCE) Reconciliation ($ in thousands) 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 Net income (loss) available to common equity $121,857 $108,355 $98,812 $(164,490) $85,143 Other intangible amortization, net of tax
Slide 27: Reconciliation & Definitions of Non-GAAP Items
Reconciliation & Definitions of Non-GAAP Items Non-GAAP Efficiency Ratios Reconciliation ($ in thousands) 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 Total expense for efficiency ratios reconciliation Noninterest expense $216,202 $209,352 $210,619 $224,282 $200,597 Less: Other intangible amortization 2,