Company: ASB
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000007789-25-000049
Chunk: 127

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 1
Chunk 127
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 long-term funding627,658 11,085 7.06%840,880 13,769 6.55%539,106 10,058 7.46%Total short and long-term funding2,630,852 31,205 4.79%2,695,752 36,015 5.33%2,793,331 40,194 5.78%Total interest-bearing liabilities31,824,193 $240,345 3.06%31,294,664 $258,903 3.29%30,178,337 $266,425 3.55%Noninterest-bearing demand deposits5,640,123 5,738,557 5,882,052 Other liabilities535,732 510,000 527,437 Stockholders’ equity4,630,578 4,528,342 4,181,381 Total liabilities and stockholders’ equity$42,630,627 $42,071,562 $40,769,206 Interest rate spread2.39%2.17%2.09%Net free funds0.58%0.64%0.70%Fully tax-equivalent net interest income and net interest margin$290,195 2.97%$273,968 2.81%$261,628 2.79%Fully tax-equivalent adjustment4,254 3,680 3,770 Net interest income$285,941 $270,289 $257,858 

(a) The average yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.

(b) Loans held for sale have been included in the average balances.

51

Notable Contributions to the Change in Net Interest Income

•Fully tax-equivalent net interest income and net interest income were $29 million and $28 million, or 11%, higher than the first three months of 2024, respectively. The Federal Reserve decreased the federal funds target interest rate by 100 bp in the second half of 2024 causing a decrease in the rate environment and resulted in the average yield on earning assets to decrease 19 bp and the cost of interest-bearing liabilities to decrease 49 bp from the first three months of 2024 given our ability to reprice deposits downwards. See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market Risk for