Associated Banc-Corp reported fourth-quarter net income of $118 million, or $0.80 per diluted share, surpassing the Zacks Consensus Estimate of $0.69 by 16 cents and up from $0.57 a year ago. Return on average assets rose to 1.02% from 0.78% in Q4 2024, while return on average tangible common equity improved to 11.5% versus 8.4% in the prior year period. This marks the bank’s fourth consecutive quarter of year-over-year EPS growth.

Total revenue climbed 6% year-over-year to $573 million as net interest income increased 8% to $492 million. The net interest margin expanded 15 basis points to 3.25%, driven by repricing of higher-beta commercial and consumer loan portfolios. Non-interest income contributed $81 million, up 2% year-over-year, reflecting higher fees on transaction accounts and improved capital markets activity.

Provision for credit losses fell 25% year-over-year to $40 million, reflecting continued stability in loan performance and proactive risk management. Net charge-offs declined to 0.20% of average loans from 0.30% in the year-ago quarter. The nonperforming assets ratio improved to 0.79% from 0.95% at the end of Q4 2024, and the allowance for credit losses covered 1.40% of total loans, up slightly from 1.35% a year ago.

Non-interest expenses decreased 3% year-over-year to $237 million as the efficiency ratio improved to 65.4% from 69.8% in Q4 2024. The bank realized $12 million of operating cost savings through branch consolidation and technology investments, partially offset by higher compensation related to performance incentives. Technology and digital-channel spend rose 5% but contributed to a 7% increase in digital customer adoption.