Associated Banc-Corp Q4 FY2025 earnings call

• In March 2025, the company completed all major investments from Phase two of its strategic plan, providing strong momentum. - The company achieved the strongest organic household growth in a decade with net growth in all four quarters of 2025. - Added over $1.2 billion in C&I loan growth in 2025 while reducing low-yielding resi mortgage loan balances. - Core customer deposits increased nearly $1 billion in 2025. - Q4 net interest income was $310 million, a record, and NII was up 15% for the year. Q4 non-interest income was $79 million, with growth in capital markets, wealth fees, and card fees. - Credit performance was strong with criticized loans decreasing, non-accruals at 32 basis points of total loans, and net charge-offs at 12 basis points for the full year. - In December 2025, the company announced the acquisition of American National Corporation, enabling entry into the Omaha market and strengthening position in the Twin Cities market. - Plans to make additional investments in 2026 in strategic growth markets like Twin Cities, Omaha, Kansas City, and Dallas to accelerate organic growth.

In 2025, Associated Banc-Corp reported earnings of $2.77 per share for the full year and $0.80 per share in Q4. Total loans grew 5% versus 2024. C&I loans were a primary growth driver, growing another 2% in Q4 and adding $1.2 billion in balances for the year. Core deposits grew nearly $1 billion in 2025, with a $700 million increase in Q4 versus Q3 and a 3.5% growth rate point to point, and 5% quarterly average growth from 2024 to 2025.

• Net interest income is expected to grow between 5.5% and 6.5% in 2026, assuming two Fed rate cuts and excluding the impact of the American National acquisition. - Non-interest income is expected to grow by 4% to 5% in 2026, excluding potential impacts from the American National acquisition. - Total non-interest expense is expected to grow 3% in 2026, excluding the impact of the American National acquisition. - Core customer deposits are expected to grow by 5% to 6% in 2026, excluding the impact of the American National acquisition. - C&I loan growth is expected to be 9% to 10% in 2026, and total bank loan growth is expected to be 5% to 6% in 2026, both excluding the impact of the American National acquisition.

• Economic uncertainty could impact credit quality and business performance. - Interest rate changes may affect net interest income. - Macro-economic factors such as inflation, labor market changes, and tariff negotiations could impact credit and business operations.

Q: Daniel Tamayo asked about net interest income guidance including the American National acquisition.

A: Andrew Harmening stated the acquisition is in the approval process, expected to close in Q2 and integrate in Q3, strategic alignment is good but no specific financial projections for now.

Q: Scott Siefers inquired about portfolio segments that have been drags.

A: Andrew Harmening said resi mortgage will continue to run off at a similar pace, allowing C&I expansion and deposit growth.

Q: Terry McEvoy asked about capital markets revenues and guidance.

A: Derek Meyer noted capital markets revenues can be lumpy, but the growth plan for relationship banking should benefit it, and they aim for a more durable pattern in forecasting.

Q: Andrew Leishner asked about capital considerations and credit risks.

A: Andrew Harmening said organic growth is the top priority, and Patrick Ahern stated no突出stressed portfolio verticals or geographies currently, monitoring economic dynamics.

Q: Jon Arfstrom asked about deposit mix change and Chicago market.

A: Derek Meyer explained non-maturity deposit buckets have seasonality, and Andrew Harmening said Chicago is a successful market but specific size not disclosed, emphasizing growth via recruiting talented RMs