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Sep 30, 2024

Associated Bank Q3 2024 Earnings Report

Associated Bank reported net income available to common equity of $85 million for Q3 2024.

Key Takeaways

Associated Banc-Corp reported a solid third quarter in 2024, driven by loan and deposit growth, margin expansion, and strong credit performance. The company's net income available to common equity was $85 million, or $0.56 per common share.

Diluted earnings per common share were $0.56.

Total period end core customer deposit growth was $618 million.

Total period end deposit growth was $863 million.

Total period end loan growth was $373 million.

Total Revenue
$330M
Previous year: $321M
+2.9%
EPS
$0.56
Previous year: $0.53
+5.7%
Net Interest Margin
2.78%
Previous year: 2.71%
+2.6%
Gross Profit
$608M
Previous year: $299M
+103.3%
Cash and Equivalents
$967M
Previous year: $389M
+148.8%
Free Cash Flow
$155M
Total Assets
$42.2B
Previous year: $41.6B
+1.4%

Associated Bank

Associated Bank

Forward Guidance

Associated Banc-Corp provided forward guidance for 2024, including expectations for loan growth, deposit growth, and noninterest expense.

Positive Outlook

  • Expecting 2024 period end loan growth to finish at the lower end of previous 4% to 6% range as compared to 2023.
  • Expecting 2024 period end core customer deposit growth to finish at the lower end of previous 3% to 5% range as compared to 2023.
  • Expect total net interest income growth of 0% to 1% in 2024.
  • Continue to expect total noninterest income to finish within a range of negative 1% to 1% growth in 2024, excluding the impact of the mortgage and investment securities sales announced during the fourth quarter of 2023.
  • Expect the annual effective tax rate to be between 19% and 21% in 2024, assuming no change in the corporate tax rate.

Challenges Ahead

  • Unspecified changes to risk grades.
  • Unspecified economic conditions.
  • Unspecified loan volumes.
  • Other indications of credit quality.
  • Total noninterest expense to grow by 1% to 2% in 2024, after adjusting to exclude the impact of the $31 million FDIC special assessment booked during the fourth quarter of 2023 and $4 million of FDIC special assessment, net recognized over the first three quarters of 2024.