Q3 2025 Associated Banc-Corp Earnings Call Transcript
Key Points
- Associated Banc-Corp (ASB) achieved record net interest income of $305 million in Q3 2025, marking a 16% increase from Q3 2024.
- The company reported strong organic growth, with net household growth each quarter and a significant increase in core customer deposits by over $600 million in Q3.
- ASB successfully added nearly $1 billion in high-quality C&I loans year-to-date, demonstrating effective balance sheet remixing.
- The bank's capital generation improved, with a 13 basis point increase in CET1 capital in Q3, supporting future growth.
- ASB maintained strong credit quality, with flat delinquencies and nonaccruals at just 34 basis points of total loans, reflecting disciplined credit management.
- Total noninterest expense increased by $7 million in Q3, driven by performance-based incentive programs, impacting overall profitability.
- The company anticipates elevated CRE payoff activity in coming quarters, which could affect loan growth.
- Deposit costs increased slightly in Q3, reflecting some pressure from higher-priced accounts returning with seasonality.
- ASB's reliance on wholesale funding sources remains a concern, although efforts are underway to reduce this dependency.
- The potential impact of macroeconomic uncertainties, including interest rate changes and trade policy negotiations, poses ongoing risks to ASB's financial performance.
Good afternoon, everyone, and welcome to Associated Banc-Corp's third-quarter 2025 earnings conference call. My name is Diego, and I will be your operator today. (Operator Instructions) Copies of the slides that will be referenced during today's call are available on the company's website at investor.associatedbank.com. As a reminder, this conference call is being recorded.
As outlined on slide 1, during the course of the discussion today, management may make statements that constitute projections, expectations, beliefs or similar forward-looking statements. Associated's actual results could differ materially from the results anticipated or projected in any such forward-looking statements. Additional detailed information concerning the important factors that could cause Associated's actual results to differ materially from the information discussed today is readily available on the SEC website in the Risk Factors section of Associated's most recent Form 10-K and subsequent SEC filings. These factors are incorporated herein by reference.
For a reconciliation of the non-GAAP financial
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