Company: ASB
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000007789-25-000179
Chunk: 181

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 181
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 4,254 3,680 3,723 Total revenue for fully tax-equivalent efficiency ratio1,110,874 981,518 390,708 371,198 348,968 215,390 333,353 Less: Announced initiatives(b)(6,976)— — — (6,976)(130,406)— Total revenue for adjusted efficiency ratio$1,117,850 $981,518 $390,708 $371,198 $355,943 $345,795 $333,353 

(a) Periods prior to the quarter ended June 30, 2025 have been adjusted to conform with current period presentation.

(b) Announced initiatives include the loss on mortgage portfolio sale and loss on prepayment of FHLB advances as a result of balance sheet repositionings that the Corporation announced in the fourth quarter of 2024.  The net loss on the sale of investments is already excluded from noninterest income within the efficiency ratio.

73

Sequential Quarter Results

The Corporation reported net income of $124.7 million for the third quarter of 2025, compared to a net income of $111.2 million for the second quarter of 2025. Net income available to common equity was $121.9 million for the third quarter of 2025, or $0.73 for both basic and diluted earnings per common share. Comparatively, the net income available to common equity for the second quarter of 2025 was $108.4 million, or $0.65 for both basic and diluted earnings per common share. The increase was primarily driven by organic growth in net interest income, increases in noninterest income through elevated activity in our capital markets syndications and swaps businesses.  These increases were offset by increases in noninterest expense, primarily personnel due to variable compensation as a result of strong execution against our strategic plan and increased healthcare costs.

Fully tax-equivalent net interest income for the third quarter of 2025 was $309.4 million, $5.2 million, or 2%, higher than the second quarter of 2025. The net interest margin in the second and third quarter of 2025 was 3.04%.  This was due to organic net interest income growth driven by continued growth in higher yielding loans in our commercial and industrial segment.

Average earning assets increased $487.6 million, or 1%, to $40.6 billion in the third quarter of