Associated Banc-Corp Reports $474.8 Million Net Income for 2025, Acquires American National Corporation

Associated Banc-Corp reported a net income of $474.8 million for the year ended December 31, 2025, a significant increase compared to $123.1 million in 2024. Net income available to common equity also rose substantially to $463.3 million from $111.6 million in the previous year. This translates to basic earnings per common share of $2.79 and diluted earnings per common share of $2.77, compared to $0.73 and $0.72, respectively, in 2024. The company's return on average assets was 1.09%, up from 0.30% in the prior year, while the return on average tangible common equity reached 13.63%, a considerable jump from 3.99% in 2024.

The company's financial performance was driven by a 15% increase in net interest income, reaching $1.2 billion in 2025. This growth was attributed to a 25 basis point expansion in the net interest margin, which stood at 3.03% for the year. Average loans increased by 3% to $30.6 billion, while average deposits grew by 4% to $34.8 billion. A notable strategic move was the balance sheet repositioning announced in the fourth quarter of 2024, involving the sale of lower-yielding residential mortgage loans and investment securities, which contributed to the improved net interest margin. The provision for credit losses decreased to $54.0 million, compared to $85.0 million in 2024, reflecting nominal credit movement and general macroeconomic trends.

Strategic developments included a definitive agreement entered into on November 30, 2025, for the acquisition of American National Corporation in an all-stock transaction valued at approximately $604 million. This acquisition is expected to close in the second quarter of 2026, pending regulatory approvals and customary closing conditions. Operationally, the company continued to focus on human capital management, with approximately 4,000 colleagues at the end of 2025. The company hired 675 external candidates and experienced a low voluntary turnover rate of 12%. Internal promotions and lateral moves accounted for 21% of colleague career advancements.

Associated Banc-Corp is subject to extensive government regulation and supervision, including capital requirements and ongoing examinations by regulatory authorities. The company continues to exceed all capital requirements necessary to be deemed "well-capitalized" for regulatory purposes. The company is also navigating evolving regulatory frameworks related to cybersecurity, data protection, and the use of artificial intelligence in its operations. The company is also monitoring proposed regulatory changes, including those related to the Basel III standards and the Community Reinvestment Act.