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Dec 31, 2022
Associated Bank Q4 2022 Earnings Report
Reported earnings of $0.70 per common share for the fourth quarter and $2.34 per common share for the full year.
Key Takeaways
Associated Banc-Corp reported a net income available to common equity of $106 million, or $0.70 per common share, for the quarter ended December 31, 2022. The company's end of period total loans were up 4%, or $982 million, from the prior quarter and were up 19%, or $4.6 billion from the same period last year. End of period deposits of $29.6 billion were up 1%, or $438 million, from the prior quarter and were up 4%, or $1.2 billion from the same period last year.
Net income available to common equity was $106 million, or $0.70 per common share.
End of period total loans were up 4%, or $982 million, from the prior quarter and were up 19%, or $4.6 billion from the same period last year.
End of period total deposits were up 1%, or $438 million, from the prior quarter and were up 4%, or $1.2 billion from the same period last year.
Net interest income was up 9%, or $25 million, from the prior quarter. Net interest margin of 3.31% was up 18 basis points from the prior quarter.
Forward Guidance
In 2023, we expect total loan growth of 7% to 9% on an end of period basis as compared to the year ended December 31, 2022. We expect total net interest income growth of 15% to 17% in 2023. We expect total noninterest income to compress by 6% to 8% in 2023. We expect noninterest expense to grow by 4% to 6% in 2023. In 2023, we expect the annual effective tax rate to be between 20% and 21%, assuming no change in the corporate tax rate. In 2023, we expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
Positive Outlook
- Expect total loan growth of 7% to 9% on an end of period basis as compared to the year ended December 31, 2022.
- Expect total net interest income growth of 15% to 17% in 2023.
- Expect the annual effective tax rate to be between 20% and 21%, assuming no change in the corporate tax rate.
- Expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
Challenges Ahead
- Expect total noninterest income to compress by 6% to 8% in 2023.
- Expect noninterest expense to grow by 4% to 6% in 2023.
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