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Associated Banc-Corp’s ASB first-quarter 2025 earnings of 59 cents per share surpassed the Zacks Consensus Estimate of 57 cents. Also, the bottom line compared favorably with 52 cents earned in the prior-year quarter.
Results benefited from an increase in net interest income (NII) and adjusted non-interest income. A rise in loans and deposit balances and lower provisions acted as tailwinds. However, higher expenses were the undermining factor.
Net income available to common shareholders was $98.8 million, up 26% from the year-ago quarter. Our estimate for the metric was $89.5 million.
ASB’s Revenues Rise, Adjusted Expenses Up
Total revenues (FTE basis) for the quarter were $349 million, up 7% year over year. However, the top line lagged the Zacks Consensus Estimate of $350.7 million.
NII was $285.9 million, up 11%. The net interest margin was 2.97%, up 18 basis points (bps) year over year. The increase was driven by a fall in the average cost of total interest-bearing liabilities. We had expected NII and net interest yield to be $278.4 million and 2.84%, respectively.
The non-interest income was $58.8 million, down 10%. Excluding the loss on mortgage portfolio sale, adjusted non-interest income came in at $66 million, rising 2%. Our estimate for adjusted non-interest income was $66.8 million.
Non-interest expenses increased 7% to $210.6 million. Our estimate for non-interest expenses was $203.5 million.
The adjusted FTE efficiency ratio was 58.6%, up from 58.2% in the prior-year quarter. A rise in the efficiency ratio indicates a fall in profitability.
Associated Banc-Corp’s Loans & Deposits Rise
As of March 31, 2025, total loans were $30.3 billion, up 2% from the prior quarter. Our estimate for total loans was $30.5 million.
Also, total deposits grew 2% to $35.2 billion. Our estimate for total deposits was $34.2 million.
Associated Banc-Corp’s Credit Quality Improves
In the reported quarter, the company recorded a provision for credit losses of $13 million, down 46% from the prior-year quarter.
As of March 31, 2025, total non-performing assets were $159 million, down 15%. Total non-accrual loans were $134.8 million, falling 24%.
Net charge-offs were $8.7 million, plunging 61% from the prior-year quarter.
Associated Banc-Corp’s Capital Ratios Improve
As of March 31, 2025, the Tier 1 risk-based capital ratio was 10.68%, up from 10.02% recorded in the corresponding period of 2024. The common equity Tier 1 capital ratio was 10.11%, up from 9.43%.
ASB’s Share Repurchase Update
During the reported quarter, Associated Banc-Corp repurchased 0.9 million shares.