Q2 2025 Associated Banc-Corp Earnings Call Transcript
Key Points
- Associated Banc-Corp (ASB) achieved the best organic checking household growth in nearly a decade during Q2 2025.
- The company posted a record quarterly net interest income of $300 million, the strongest in its history.
- ASB's CET1 capital increased by 9 basis points in Q2, contributing to a total increase of 19 basis points for the year.
- Commercial and Industrial (C&I) loan growth exceeded $700 million in the first half of 2025, with expectations to surpass the $1.2 billion target for the year.
- The company reported a return on tangible common equity of 12.96% in Q2, marking a 62 basis point improvement from Q1.
- Q2 deposit levels were impacted by seasonal outflows, although core customer deposits were up 4.3% compared to the previous year.
- Total non-interest expense slightly decreased to $209 million, but the company continues to face challenges in managing expenses.
- The allowance for credit losses increased by $5 million in Q2, reflecting potential risks in commercial and business lending.
- Total delinquencies increased slightly to $52 million in Q2, with an uptick in the 90-plus day bucket.
- The company remains cautious about the ongoing uncertainty in the macroeconomic environment, particularly concerning interest rates and credit quality.
Good afternoon, everyone, and welcome to Associated Banc-Corp's second quarter 2025 earnings conference call. My name is Alicia, and I'll be your operator today. (Operator Instructions) Copies of the slides will be referenced during today's call and 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 may 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
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