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- **Record Financial Performance**: Q3 net interest income ($305M) and ROTCE (14%) set new highs, up 16% and 250bps YoY. CET1 capital +13bps Q/Q to 10.33%.
- **C&I Growth Acceleration**: $1B+ C&I loan growth YoY, with pipeline up 31%. 2026 growth poised to benefit from expiring noncompetes and new RM hires.
- **Profitability Drivers**: 14-15% NII growth target for 2025, supported by asset remixing and 55%+ deposit beta. Efficiency ratio below 55%.
- **Credit Resilience**: Delinquencies flat at $52M, nonaccruals down 34bps. Strong credit culture maintains ACLL stability despite macro uncertainty.

**【Management Opening Remarks】**
- **Revenue Growth and Organic Expansion**: Q3 revenue growth driven by 1% quarterly loan growth (3% YoY), with C&I loans up $300M Q/Q and $1B YoY. Organic checking household growth on track for the strongest year in a decade.
- **Balance Sheet Remixing**: Added $1B in high-quality C&I loans while reducing low-yielding residential mortgages. Core deposits grew $628M Q/Q and $1.2B YoY, enabling wholesale funding reduction.
- **Profitability Milestones**: Record Q3 net interest income ($305M) and ROTCE of 14%, up 250bps YoY. CET1 capital increased 13bps Q/Q to 10.33%.

**【CFO Financial Commentary】**
- **Net Interest Income (NII)**: Q3 NII of $305M, up 16% YoY, with margin stable at 3.04%. 2025 NII growth target 14-15% (assuming 2 Fed rate cuts). Asset sensitivity reduced to 0.5% impact on NII in a 100bps rate cut scenario.
- **Noninterest Income**: $81M in Q3, up 21% Q/Q driven by capital markets and wealth fees. 2025 noninterest income growth expected 5-6%.
- **Expense Management**: Q3 noninterest expense $216M (+$7M Q/Q) due to incentive programs. Efficiency ratio improved to below 55%, with 2025 expense growth target 5-6%.

**【Q&A Highlights】**
- **C&I Growth Momentum**: Pipeline up 31% YoY, with $1B+ C&I growth YoY. Noncompete expirations and new RM hires expected to accelerate 2026 growth. Deposit production up 23% Q/Q in commercial segment.
- **Deposit Cost Dynamics**: Q3 deposit beta 55-58%, with stable pricing despite seasonal high-rate inflows. 2025 core deposit growth forecast 4-5%.
- **Credit Quality**: Delinquencies flat at $52M, nonaccruals down 34bps to 1.34%. Net charge-offs 17bps, consistent with prior quarters. CRE payoff activity expected to continue with falling rates.
- **Strategic Investments**: New wealth product launches and HOA/title verticals expected to drive incremental growth. 2026 focus on relationship-based C&I and low-cost deposits.


Associated Banc-Corp (ASB) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ASB

ASB fundamentals

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