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Mar 31, 2022
Associated Bank Q1 2022 Earnings Report
Associated Banc-Corp's first quarter performance was driven by positive trends in margin, expenses, and credit.
Key Takeaways
Associated Banc-Corp reported a net income available to common equity of $71 million, or $0.47 per common share, for the quarter ended March 31, 2022. The results reflect positive momentum in strategic lending initiatives, with commercial line utilization climbing and benign credit conditions.
Average loans were up $302 million to $24.1 billion.
Average deposits were up $245 million to $28.6 billion.
Net interest income was up $1 million to $188 million.
Noninterest expense was down $9 million to $173 million.
Associated Bank
Associated Bank
Forward Guidance
Associated Banc-Corp anticipates a positive trajectory for the remainder of 2022, expecting net interest income to exceed $840 million.
Positive Outlook
- Short-term interest rates are expected to rise following each of this year's Federal Open Market Committee meetings.
- Assuming rate increases of 25 basis points or more following each meeting, we now expect our 2022 net interest income to exceed $840 million.
- Expect full-year auto finance loan growth of over $1.2 billion.
- Expect total commercial loan growth of $750 million to $1 billion.
- Expect annual tax rate to be between 19% and 21%.
Challenges Ahead
- Planned changes to overdraft program expected to reduce service charges and deposit account fees by approximately $3 million in 2022.
- Expecting less mortgage banking income.
- Expecting lower service charge revenues for both commercial and consumer customers over the back half of the year.
- Expect total noninterest income for the year of between $290 million and $300 million.
- Expect total noninterest expense of approximately $725 million to $740 million for 2022.