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Dec 31, 2021
Associated Bank Q4 2021 Earnings Report
Associated Banc-Corp reported earnings for the fourth quarter of 2021.
Key Takeaways
Associated Banc-Corp reported net income available to common equity of $74 million, or $0.49 per common share, for the quarter ended December 31, 2021. The quarter was marked by a resurgence in lending growth. Revenues, margins, and credit trends also showed positive growth.
Net income available to common equity was $74 million, or $0.49 per common share.
Commercial outstandings, line utilization, and new initiatives drove lending growth.
Revenues and margins grew, and credit trends were positive.
The company largely exited its remaining Oil & Gas exposure at minimal cost.
Associated Bank
Associated Bank
Forward Guidance
Associated Banc-Corp expects continued growth and profitability in 2022.
Positive Outlook
- Total net interest income to exceed $800 million in 2022.
- Total noninterest income to exceed $300 million in 2022.
- Auto Finance loan growth of more than $1.2 billion expected in 2022.
- Total Commercial loan growth of $750 million to $1 billion expected in 2022.
- Annual 2022 tax rate to be between 19% to 21%, assuming no change in the corporate tax rate.
Challenges Ahead
- 2022 noninterest expense to be approximately $725 million to $740 million.
- Provision will be adjusted to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
- Expect the annual 2022 tax rate to be between 19% to 21%, assuming no change in the corporate tax rate.
- Mortgage banking income decreased $6 million from the same period last year, driven by slowing refinance activity.
- Personnel expense was flat to the prior quarter and increased $10 million from the same period last year, driven by higher incentive compensation, added costs tied to our strategic initiatives, and the implementation of a minimum wage increase.