Associated Banc-Corp (ASB) Q4 2024 earnings summary

Executive summary

• Q4 2024 results were impacted by significant nonrecurring losses from balance sheet repositioning, but adjusted EPS was $0.57, reflecting strong organic growth and enhanced commercial capabilities.

• Net income available to common equity for 2024 was $112M ($0.72/share); adjusted net income was $367M ($2.38/share).

• Expanded leadership team and commercial hires, with new board members and executive leaders added in 2024.

• Positioned for continued growth in 2025 with enhanced profitability, customer satisfaction, and digital upgrades.

Financial highlights

• Adjusted Q4 EPS was $0.57; GAAP diluted EPS was $(1.03) due to repositioning losses.

• Net interest income for Q4 was $270M, up $8M sequentially; full year NII was $1.0B, up 1% from 2023.

• Core customer deposits grew $900M in Q4 and $1.2B (4%) for the year; total deposits at $34.6B.

• Adjusted loans grew $501M in Q4 and $1.3B for 2024; total loans up $552M to $29.8B.

• Adjusted noninterest income was $72M in Q4; noninterest expense was $210M (adjusted), up $9M from Q3.

Outlook and guidance

• 2025 guidance: period-end loan growth of 5–6%, deposit growth of 1–2%, core customer deposit growth of 4–5%.

• Net interest income projected to grow 12–13% in 2025; noninterest income to rise 0–1%; noninterest expense up 3–4%.

• CET1 capital ratio projected at 10–10.5%; effective tax rate expected between 19–21%.