Associated Banc-Corp (ASB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income available to common equity was $85 million ($0.56 per share), up from $80 million ($0.53/share) in Q3 2023, with continued resilience in core Midwestern markets and record customer satisfaction.

• Strategic initiatives, including digital enhancements, new commercial hires, and ongoing investments in talent and technology, are driving growth in deposits and loans.

• Credit quality remains strong, with disciplined risk management, a diversified loan portfolio focused on prime/super-prime borrowers, and high customer satisfaction.

• Customer base and per-household deposit balances are increasing, reversing prior negative trends.

• Leadership strengthened by key hires and execution of strategic growth plans.

Financial highlights

• GAAP diluted EPS was $0.56 for Q3 2024; net income for Q3 2024 was $88 million, up from $83 million in Q3 2023.

• Net interest income for Q3 2024 was $263 million, up $6 million sequentially and $8 million year-over-year, with net interest margin rising to 2.78%.

• Noninterest income increased 3% from Q2, led by wealth management fees, and totaled $67 million in Q3 2024.

• Noninterest expense was $201 million, up $5 million from Q2, with the efficiency ratio improving to 60.4%.

• CET1 ratio increased to 9.72%, the highest since Q1 2022.

Outlook and guidance

• 2024 period-end loan and core customer deposit growth expected at the lower end of the 4%-6% and 3%-5% ranges, respectively.

• Net interest income growth projected between 0% and 1% for 2024; noninterest income growth expected between -1% and 1%.

• Noninterest expense growth outlook lowered to 1%-2% for 2024, excluding FDIC special assessments.

• TCE and CET1 ratios expected to remain within 6.75%-7.75% and 9%-10% ranges, respectively.

• Effective tax rate expected between 19%-21%, excluding a $33 million deferred tax benefit in Q2 2024.