Associated Banc-Corp reported its financial results for the second quarter of 2025, revealing a net income of $111.2 million, a decrease from $115.6 million in the same quarter of the previous year. The net income available to common equity was $108.4 million, translating to earnings per share of $0.65, down from $0.75 in the prior year. The decline in profitability was attributed to a tax benefit recognized in the second quarter of 2024, which did not recur this year. The bank's net interest income increased by 14% to $585.9 million, driven by a rise in higher-yielding loan balances and a strategic repositioning of the balance sheet that involved selling lower-yielding residential mortgage loans.
In terms of operational metrics, total loans reached $30.6 billion, up $839 million or 3% from the end of 2024, primarily due to growth in commercial and business lending, as well as auto finance. However, residential loans held for sale plummeted by 85% to $96.8 million, reflecting the impact of the aforementioned balance sheet repositioning. Average deposits decreased by 1% to $34.1 billion, with notable declines in interest-bearing demand deposits and brokered CDs, although savings deposits saw a slight increase.
The provision for credit losses was reported at $31 million, a significant reduction from $47 million in the first half of 2024, reflecting stable credit quality and macroeconomic conditions. Noninterest income decreased by 3% to $125.8 million, primarily due to a loss recognized from the settlement of a mortgage loan sale. Noninterest expenses rose by 7% to $420 million, driven by increases in personnel costs and legal expenses, as well as write-downs related to other real estate owned (OREO).
Looking ahead, Associated Banc-Corp remains focused on strategic growth and maintaining its capital ratios above regulatory requirements. The bank's total assets increased to $44 billion, up 2% from the previous year, while its capital ratios, including a Common Equity Tier 1 ratio of 10.20%, indicate a strong capital position. The management anticipates continued growth in commercial lending and a stable economic environment, which should support future profitability.
About ASSOCIATED BANC-CORP
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