ASB Q4 Earnings Beat as Revenues Improve, Provisions Decline

Associated Banc-Corp’s ASB fourth-quarter 2025 earnings of 80 cents per share handily surpassed the Zacks Consensus Estimate of 69 cents. This compared favorably with adjusted earnings of 57 cents in the prior-year quarter. 

Results reflected higher net interest income (NII) and a robust improvement in non-interest income. A rise in loans and deposit balances, and lower provisions and expenses acted as tailwinds. 

Net income available to common equity was $134 million against a loss of $164 million in the year-ago quarter. Our estimate for the metric was $111 million.

ASB’s Revenues Rise, Expenses Down

Total revenues (FTE basis) for the quarter were $393.5 million, up from adjusted revenues of $346 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $379.7 million. 

NII was $310 million, increasing 15% year over year. The net interest margin was 3.06%, up 25 basis points (bps). The rise was driven by a lower average cost of total interest-bearing liabilities.  We had expected NII and net interest yield to be $300.2 million and 3.02%, respectively.

Non-interest income totaled $79.4 million, improving 11% from adjusted non-interest income of $71.8 million. This primarily reflected increases in wealth management fees and capital markets revenue. Our estimate for non-interest income was $70.1 million.

Non-interest expenses were $219 million, down 2% year over year. The decline mainly reflected the absence of the prior-year loss on prepayments of FHLB advances, partially offset by higher personnel and technology costs. Our estimate for non-interest expenses was $210.7 million.

The adjusted efficiency ratio was 55.15%, down from 60.10 % in the prior-year quarter. A fall in the efficiency ratio indicates an improvement in profitability.

Associated Banc-Corp’s Loans & Deposits Rise

As of Dec. 31, 2025, total loans were $31.2 billion, up 1% sequentially. The rise was primarily driven by higher commercial and business lending. Our estimate for total loans was $31.4 billion.

Total deposits rose 2% sequentially to $35.6 billion. Our estimate for total deposits was $35.3 billion.

Associated Banc-Corp’s Credit Quality Improves

In the reported quarter, the company recorded a provision for credit losses of $7 million, down from $17 million in the prior-year quarter. Our estimate for the metric was $18.8 million.

As of Dec. 31, 2025, total non-performing assets were $129.2 million, down 10% year over year. Total non-accrual loans were $100.4 million, falling 19%.

Net charge-offs were $2 million, down 81% from the prior-year quarter.

Associated Banc-Corp’s Capital Ratios Improve

As of Dec. 31, 2025, the common equity Tier 1 (CET1) capital ratio was 10.49%, up from 10.33% recorded in the corresponding period of 2024. The Tier 1 capital ratio was 11.04%, up from 10.89%.

ASB 2026 View (Excluding the American National Deal Impact)

Management expects total period-end loan growth of 5-6% 

Period-end total deposit growth and period-end core customer deposit growth are estimated in the range of 5-6%.

NII is projected to grow in the 5.5-6.5% band.

Total non-interest income is expected to rise 4-5%.

Total non-interest expense is expected to grow 3%.

The annual effective tax rate is expected to be 19-21% (assuming no change in the corporate tax rate and excluding any acquisition impact).

Our Take on Associated Banc-Corp

Associated Banc-Corp’s solid quarterly performance highlights the benefits of its diversified franchise and disciplined balance sheet management. Continued commercial lending momentum, expanding customer deposits, a robust capital base position and the impending American National buyout bode well for the company’s sustained growth. 

However, rising expenses and a competitive funding environment could limit margin expansion in the near term.
 

Associated Banc-Corp Price, Consensus and EPS Surprise

Associated Banc-Corp price-consensus-eps-surprise-chart | Associated Banc-Corp Quote

ASB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

BankUnited, Inc.’s BKU fourth-quarter 2025 adjusted earnings of 94 cents per share surpassed the Zacks Consensus Estimate of 85 cents. Further, the bottom line was up 3.3% from the prior-year quarter.

Results were aided primarily by a rise in non-interest income and NII. Higher loan balance and improved deposits were the other positives. However, higher expenses and provisions were the undermining factors for BKU.

F.N.B. Corporation FNB reported fourth-quarter 2025 operating earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents. Also, the bottom line jumped 31.6% year over year.

FNB’s quarterly results benefited from higher NII and non-interest income. Higher loans and deposits and a decline in provisions were additional positives. However, higher non-interest expenses were an undermining factor.

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