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Mar 31, 2023
Associated Bank Q1 2023 Earnings Report
Associated Bank reported first quarter results, driven by core market strength and strategic plan execution.
Key Takeaways
Associated Banc-Corp reported a net income available to common equity of $100 million, or $0.66 per common share, for the quarter ended March 31, 2023. The results were driven by the strength and stability of the company's core markets and ongoing efforts to deepen customer relationships. Total loans and deposits grew, and positive operating leverage was achieved while maintaining a conservative approach to risk management.
Total period end commercial loans increased $175 million to $18.2 billion.
Total period end consumer loans increased $233 million to $11.0 billion.
Total period end deposits increased $696 million to $30.3 billion.
Net interest margin decreased 24 basis points to 3.07%.
Forward Guidance
Associated Banc-Corp provided forward guidance for the full year 2023, including expectations for total loan growth, total average core customer deposit growth, total net interest income growth, total noninterest income compression, and total noninterest expense growth.
Positive Outlook
- Expects to drive full-year total loan growth of 6% to 8%.
- Expects to drive total average core customer deposit growth of 1% to 3%.
- Expects total net interest income growth of 13% to 15%.
- Expects the 2023 effective tax rate to be between 20% and 21%, assuming no change in the statutory corporate tax rate.
- The Company’s capital position remains strong, with a CET1 capital ratio of 9.45% at March 31, 2023.
Challenges Ahead
- Expects total noninterest income to compress by 8% to 10%.
- Expects total noninterest expense to grow by approximately 4%.
- In 2023, we expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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