Associated Banc-Corp reported fourth quarter earnings of $0.80 per share, surpassing the consensus estimate of $0.69 and up from $0.57 in the year-ago quarter. Net income rose 28% year-over-year to $120 million, driven by higher core banking revenues and lower credit costs. Return on tangible common equity improved to 12.5%, compared with 10.8% in Q4 2024, underscoring the bank’s enhanced profitability.

Total revenue increased 6% sequentially to $480 million as net interest income climbed 8% to $360 million. The net interest margin expanded 15 basis points to 3.25%, reflecting repricing in the loan portfolio and stable deposit costs. Non-interest income held steady at $120 million, supported by fee revenue from treasury management and wealth services.

Loan loss provisions fell 40% quarter-to-quarter to $18 million, as the reserve build stabilized after one-time adjustments in Q3. The allowance for credit losses covers 1.40% of total loans, up from 1.35% at year-end 2024. Net charge-offs remained low at 0.15% of average loans, indicating continued portfolio resilience.

Non-interest expenses declined 3% sequentially to $260 million, driven by efficiency initiatives and branch rationalizations. The efficiency ratio improved to 54.2%, compared with 56.7% in the prior quarter. The common equity Tier 1 capital ratio stood at 10.8%, providing ample headroom above regulatory requirements and supporting future growth investments.