Financial Data and Key Metrics Changes - The company reported earnings of $0.65 per share for Q2 2025, with total loans growing by 1% quarter-over-quarter and 3% year-over-year [9] - Net interest income reached a record $300 million, up $43 million or 17% compared to the same period last year [10][11] - The return on tangible common equity was 12.96%, a 62 basis point improvement from Q1 [12] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew by over $700 million in the first half of 2025, with $356 million added in Q2 alone [6][10] - Total average quarterly loans increased by nearly $400 million versus Q1, with C&I leading the growth [14] - Non-interest income for Q2 was $67 million, a 3% increase year-over-year [22] Market Data and Key Metrics Changes - Core customer deposits were up 4.3% compared to the same period last year, despite seasonal outflows in Q2 [10][15] - The net interest margin climbed above 3%, reflecting a strong profitability profile [13] Company Strategy and Development Direction - The company is focused on executing its strategic plan, which includes enhancing profitability through a mix shift in its asset base [5][12] - There is a strong emphasis on organic growth in customer relationships, with the best organic checking household growth in nearly a decade [5][16] - The company aims to reduce reliance on wholesale funding by increasing lower-cost core customer deposits [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow core customer deposits in the second half of the year, citing strong household growth trends and a growing commercial pipeline [10][16] - The management remains vigilant regarding credit quality, with a proactive approach to managing portfolios amid macroeconomic uncertainties [8][30] Other Important Information - The company added nine basis points to its CET1 capital in Q2, totaling a 19 basis point increase year-to-date [7] - The efficiency ratio improved to below 56%, the lowest level since early 2023 [23] Q&A Session Summary Question: Seasonal decline in deposits - Management acknowledged the seasonal decline but noted that it was anticipated and that they expect a rebound in the second half of the year due to a growing commercial pipeline [36][39] Question: Update on office CRE portfolio - Management indicated that the office CRE portfolio is evolving positively, with proactive clients benefiting from improvements [46][48] Question: Margin outlook and deposit pricing strategy - Management discussed the importance of asset-side growth in maintaining margin strength and emphasized disciplined pricing strategies for deposits [53][59] Question: Thoughts on acquisitions - Management stated that any potential acquisition would need to be a good strategic, financial, and cultural fit, emphasizing the priority of executing their current strategic plan [68][70] Question: Increase in ACL for C&I portfolio - Management explained that the increase in the allowance for credit losses (ACL) for the C&I portfolio is primarily due to growth in that segment [72] Question: Sustainability of positive operating leverage - Management expressed confidence in sustaining positive operating leverage into 2026, driven by growth in commercial loans and disciplined expense management [79][81]

Financial Data and Key Metrics Changes - The company reported earnings of $0.65 per share for Q2 2025, with total loans growing by 1% quarter over quarter and 3% year over year [8][10] - Net interest income reached $300 million, marking a 17% increase compared to the same period last year, and was the highest in the company's history [10][18] - The return on tangible common equity was 12.96%, reflecting a 62 basis point improvement from Q1 [12] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew by over $700 million in the first half of 2025, with $356 million added in Q2 alone [6][9] - Total average quarterly loans increased by nearly $400 million compared to Q1, driven primarily by C&I growth [14] - Non-interest income for Q2 was $67 million, a 3% increase year over year, with fee-based revenues and capital markets income contributing to this growth [11][23] Market Data and Key Metrics Changes - Core customer deposits were up 4.3% compared to the same period last year, despite seasonal outflows in Q2 [10][15] - The net interest margin climbed above 3%, with a 29 basis point increase year over year [13][18] - The securities book increased to $9 billion, with an overall yield of 4.24% [22] Company Strategy and Development Direction - The company is focused on executing its strategic plan, which includes enhancing profitability through a mix shift in its asset base and deepening customer relationships [5][12] - The strategy involves replacing lower-yielding residential mortgage loans with higher-yielding C&I loans, aiming for total bank loan growth of 5% to 6% for the year [12][15] - The company remains open to potential acquisitions but emphasizes that any opportunity must align strategically, financially, and culturally with its goals [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow core customer deposits in the second half of the year, citing strong household growth trends and a growing commercial pipeline [16][41] - The management team remains vigilant regarding credit quality, with a proactive approach to managing portfolios amid macroeconomic uncertainties [7][30] - The company expects net interest income growth of 14-15% in 2025, assuming three Fed rate cuts [20] Other Important Information - The company added 19 basis points to its CET1 capital so far in 2025, reflecting a strong capital position [7][25] - Non-accrual loans decreased by 16%, indicating improved credit quality [11][31] - The efficiency ratio improved to below 56%, the lowest level since early 2023 [24] Q&A Session Summary Question: Seasonal decline in deposits - Management acknowledged the seasonal decline but noted that it was anticipated and that the commercial pipeline for deposits has increased significantly [38][40] Question: Update on office CRE portfolio - Management indicated that the office CRE portfolio is evolving positively, with proactive clients benefiting from improvements [47][49] Question: Margin outlook and deposit pricing strategy - Management discussed the importance of asset remixing for margin strength and emphasized disciplined pricing strategies for deposits [54][60] Question: Thoughts on acquisitions - Management reiterated that any acquisition would need to be a good strategic, financial, and cultural fit, while focusing on executing the current strategic plan [68][70] Question: ACL increase for C&I portfolio - Management explained that the increase in the allowance for credit losses (ACL) for the C&I portfolio is due to growth in that segment, reflecting a proactive risk management approach [71][72]

Second Quarter 2025 Earnings Presentation July 24, 2025 Associated Banc-Corp Important Disclosures Forward-looking statements: Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation's results of operations. These non- GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance ...

Financial Performance - Associated Banc-Corp reported net income of $108 million, or $0.65 per common share, for Q2 2025, compared to $99 million, or $0.59 per share in Q1 2025, and $113 million, or $0.74 per share in Q2 2024[1]. - Noninterest income for Q2 2025 was $67 million, an increase of $8 million from Q1 2025[14]. - Income before income taxes increased by 36% to $139,629,000 in Q2 2025, compared to $102,884,000 in Q2 2024[28]. - Net income available to common equity decreased by 4% to $108,355,000 in Q2 2025, down from $112,698,000 in Q2 2024[28]. - Adjusted net income available to common equity was $210,470 thousand in Jun 2025, compared to $194,296 thousand in Jun 2024, reflecting an increase of 8.3%[45]. Interest Income and Margin - The company achieved record net interest income of $300 million, reflecting a 5% increase from Q1 2025 and a 17% increase from Q2 2024[4]. - Total interest income increased by 3% year-over-year to $545,536,000 in Q2 2025, compared to $530,274,000 in Q2 2024[28]. - Net interest income rose by 17% to $300,000,000 in Q2 2025, up from $256,593,000 in Q2 2024[28]. - The net interest margin increased to 3.04%, a 7 basis point increase from Q1 2025 and a 29 basis point increase from Q2 2024[10]. - The fully tax-equivalent net interest margin was 3.04%, up from 2.97% in the previous quarter and 2.75% a year ago[38]. Loans and Deposits - Total period end loans reached $30.6 billion, up 1% from Q1 2025 and 3% from Q2 2024[4]. - Total period end deposits were $34.1 billion, down 3% from Q1 2025 but up 4% from Q2 2024[9]. - Total loans increased to $30.30 billion in 2025, generating interest income of $882.16 million, a yield of 5.86%, compared to $29.47 billion and $912.30 million in 2024 with a yield of 6.22%[41]. - Total deposits decreased to $34,147,565 thousand in Jun 2025 from $35,196,713 thousand in Jun 2024[45]. - Commercial and industrial loans rose by 3% to $11,281,964 compared to the previous quarter, with a year-over-year increase of 13%[43]. Noninterest Expense - Total noninterest expense was $209 million, a decrease of $1 million from Q1 2025, with an expected growth of 4% to 5% in 2025[15]. - Total noninterest expense rose by 7% to $209,352,000 in Q2 2025, up from $195,861,000 in Q2 2024[28]. - Noninterest expense for Jun 2025 was $419,971, an increase from $393,518 in Jun 2024, reflecting a year-over-year increase of 6.1%[48]. Credit Quality - The provision for credit losses on loans was $18 million, compared to $13 million in Q1 2025 and $23 million in Q2 2024[19]. - The allowance for loan losses increased by $5.2 million to $376.5 million, reflecting a slight increase in risk provisions[26]. - Provision for credit losses was $30,999 thousand in Jun 2025, compared to $47,009 thousand in Jun 2024, indicating a decrease of 34.3%[45]. - Total nonaccrual loans decreased by 16% to $112,999 thousand from $134,808 thousand in the prior quarter[36]. Capital Ratios - The CET1 capital ratio stood at 10.20% as of June 30, 2025, exceeding Basel III regulatory benchmarks[20]. - Average stockholders' equity to average assets increased to 10.88% in Jun 2025 from 10.20% in Jun 2024[45]. - The common equity Tier 1 capital ratio improved to 10.20%, compared to 10.11% in the previous quarter[31]. Operational Efficiency - The fully tax-equivalent efficiency ratio improved to 57.70% in Jun 2025 from 60.03% in Jun 2024, showing enhanced operational efficiency[48]. - The adjusted efficiency ratio for Jun 2025 was 57.15%, compared to 58.85% in Jun 2024, reflecting a positive trend in cost management[48].

Core Insights - Associated Banc-Corp reported a net income of $108 million, or $0.65 per common share, for Q2 2025, showing a slight increase from $99 million in Q1 2025 but a decrease from $113 million in Q2 2024 [1][9][23] - The company experienced strong momentum in C&I loan growth, achieving over $350 million in the second quarter, alongside a 7 basis point margin expansion, leading to the highest quarterly net interest income in its history [2][10] Financial Performance - **Earnings**: Net income available to common equity was $108 million, or $0.65 per share, compared to $99 million ($0.59 per share) in Q1 2025 and $113 million ($0.74 per share) in Q2 2024 [1][9] - **Net Interest Income**: Q2 2025 net interest income reached $300 million, up $14 million from Q1 2025 and $43 million from Q2 2024, with a net interest margin of 3.04% [8][9] - **Loans**: Average total loans for Q2 2025 were $30.5 billion, a 1% increase from the prior quarter and a 3% increase from the same period last year [5][9] - **Deposits**: Average deposits decreased by 2% from the prior quarter to $34.2 billion but increased by 5% from the same period last year [6][9] Growth Projections - The company expects total net interest income growth of 14% to 15% for 2025, driven by balance sheet growth and favorable market conditions [10] - Loan growth is anticipated to be between 5% to 6% for the year compared to the end of 2024 [5][9] - Deposit growth is projected to be between 1% to 3%, with core customer deposit growth expected at 4% to 5% [6][9] Capital and Credit Quality - The CET1 capital ratio stood at 10.20% as of June 30, 2025, indicating a strong capital position above regulatory benchmarks [15] - The provision for credit losses was $18 million, reflecting a stable credit quality environment [14][21] Noninterest Income and Expense - Total noninterest income for Q2 2025 was $67 million, an increase from the prior quarter and the same period last year [11][9] - Noninterest expense decreased slightly by $1 million from the prior quarter to $209 million, but increased by $13 million from the same period last year [12][9]

Core Viewpoint - Associated Banc-Corp (ASB) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for July 24, and a positive surprise in key numbers could lead to a stock price increase, while a miss may result in a decline [2]. - The consensus estimate for quarterly earnings is $0.62 per share, reflecting a year-over-year increase of +19.2%, with revenues expected to reach $362.81 million, up 11.5% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - For Associated Banc-Corp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.81% and a Zacks Rank of 2, suggesting a likely earnings beat [12]. Earnings Surprise History - In the last reported quarter, Associated Banc-Corp had an earnings surprise of +3.51%, reporting $0.59 per share against an expectation of $0.57 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - QCR Holdings (QCRH), another player in the Zacks Banks - Midwest industry, is expected to report earnings of $1.63 per share, indicating a year-over-year decline of -5.8%, with revenues projected at $84.65 million, down 2.8% [18]. - QCR Holdings has an Earnings ESP of +2.45% but carries a Zacks Rank of 5 (Strong Sell), complicating predictions for an earnings beat [19].

Market Overview - The Dow Jones Industrial Average declined by 436.36 points, or 0.98%, closing at 44,023.29, amid rising inflation concerns and mixed earnings from major banks [2] - The Consumer Price Index increased by 0.3% month over month, indicating potential cost impacts from recent tariff policies [1] Value Investing Insights - Current market conditions suggest a renewed focus on value investing, emphasizing companies with strong fundamentals, stable cash flows, and reasonable valuations [2] - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric, with a lower ratio indicating better value and strong cash generation potential [3][4] Company Performance and Projections - Hudbay Minerals Inc. (HBM) is projected to have sales growth of 9.7% and EPS growth of 43.8% this year, with shares rising 18.9% in the past year [9][14] - CVS Health Corporation (CVS) expects 3.4% sales growth and 12.9% EPS growth, with shares increasing by 3.8% over the past year [9][14] - Universal Health Services, Inc. (UHS) anticipates 8% sales growth and 17% EPS growth, although shares have declined by 3.7% in the past year [16] - Associated Banc-Corp (ASB) forecasts 10.1% sales growth and 5% EPS growth, with shares rising 6.3% in the past year [17] Investment Strategy Parameters - Parameters for selecting true-value stocks include a P/CF less than or equal to the industry median, a minimum stock price of $5, and an average 20-day volume greater than 100,000 [8] - Additional metrics for screening include P/E, P/B, and P/S ratios, with a PEG ratio of less than 1 indicating undervaluation [10][11]

Core Viewpoint - Associated Banc-Corp (ASB) is positioned well to continue its trend of beating earnings estimates, with a solid history of performance in recent quarters [1][5]. Earnings Performance - For the last reported quarter, Associated Banc-Corp achieved earnings of $0.59 per share, surpassing the Zacks Consensus Estimate of $0.57 per share, resulting in a surprise of 3.51% [2]. - In the previous quarter, the company was expected to post earnings of $0.55 per share but delivered $0.57 per share, yielding a surprise of 3.64% [2]. Earnings Estimates and Predictions - Estimates for Associated Banc-Corp have been trending higher, supported by its history of earnings surprises [5]. - The company currently has an Earnings ESP (Expected Surprise Prediction) of +0.81%, indicating a bullish outlook from analysts regarding its earnings prospects [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong possibility of another earnings beat in the upcoming report [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Core Insights - Edge Total Intelligence Inc. (edgeTI) has partnered with Austal Australia to integrate its real-time digital operations software, EdgeCore, into Austal's customer operating ecosystems [1][2][5] - The partnership aims to leverage Austal's maritime expertise to expand edgeTI's presence in the Asia Pacific region [5] - Austal Australia will have the capability to integrate, procure, and configure EdgeCore for its own use and for its global customer base [2] Company Overview - EdgeTI specializes in real-time digital operations software that enables AI-driven Digital Twins, enhancing situational awareness and operational efficiency for various sectors [1][8] - Austal Australia is a leading global shipbuilder and defense contractor, recognized as Australia's largest defense exporter and the world's largest aluminum shipbuilder [6] - Austal has a strong track record, having contracted over 350 vessels for more than 122 operators in 59 countries over 35 years [6]

Core Viewpoint - Associated Banc-Corp is set to release its second quarter 2025 financial results on July 24, 2025, after market close, and will host a conference call for investors and analysts at 4:00 p.m. Central Time on the same day [1]. Group 1 - The live webcast of the earnings call will be accessible through the Investor Relations section of the company's website, and participants can also dial in using provided domestic and international numbers [2]. - Financial tables and a slide presentation will be available on the company's website shortly before the call, with an audio archive expected to be accessible approximately fifteen minutes after the call concludes [2]. Group 2 - Associated Banc-Corp has total assets of $43 billion and is the largest bank holding company based in Wisconsin, operating nearly 200 banking locations across multiple states [3]. - The company offers a comprehensive range of financial products and services and serves over 100 communities in Wisconsin, Illinois, Minnesota, and Missouri, with additional loan production offices in several other states [3].