Company: ASB
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000007789-25-000116
Chunk: 270

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 8
Chunk 270
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,381 53,586 5.75%Total interest-bearing liabilities and related interest expense32,607,129 $245,536 3.02%31,824,193 $240,345 3.06%30,658,670 $274,648 3.60%Noninterest-bearing demand deposits5,648,935 5,640,123 5,712,115 Other liabilities431,338 535,732 563,616 Stockholders’ equity4,732,661 4,630,578 4,166,204 Total liabilities and stockholders’ equity$43,420,063 $42,630,627 $41,100,606 Interest rate spread2.48%2.39%2.05%Net free funds0.56%0.58%0.70%Fully tax-equivalent net interest income and net interest margin$304,228 3.04%$290,195 2.97%$260,340 2.75%Fully tax-equivalent adjustment4,228 4,254 3,747 Net interest income$300,000 $285,941 $256,593 

(a) Prior periods have been adjusted to conform with current period presentation.(b) The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21%.

(c) Nonaccrual loans and loans held for sale have been included in the average balances.

56

Notable Contributions to the Change in Net Interest Income

•Fully tax-equivalent net interest income and net interest income were $72.5 million and $71.5 million, or 14%, higher than the first six months of 2024, respectively. The increase was driven by the actions taken by the Corporation as part of the balance sheet repositioning announced in the fourth quarter of 2024 which sold off lower yielding investment securities and residential mortgages and increased earning assets.  This was offset by the Federal Reserve decreasing the federal funds target interest rate by 100 bp in the second half of 2024 causing a decrease in the rate environment.  This resulted in the average yield on earning assets to decrease 17 bp and the cost of interest-bearing liabilities to decrease 54 bp from the first six months of 2024 given our ability to reprice deposits downwards.  See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market