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Dec 31, 2024

Associated Bank Q4 2024 Earnings Report

Associated Bank reported a net loss due to nonrecurring items associated with balance sheet repositioning, but core financial results showed strength with loan and deposit growth.

Key Takeaways

Associated Banc-Corp reported a net loss of $164 million, or $1.03 per common share, for Q4 2024, impacted by nonrecurring items. Excluding these items, adjusted earnings were $91 million, or $0.57 per common share. The company saw strong commercial loan growth, core customer deposit growth, and stable credit trends.

Reported a net loss of $164 million, or $1.03 per common share, for the quarter ended December 31, 2024.

Excluding nonrecurring items, adjusted earnings were $91 million, or $0.57 per common share for Q4 2024.

Total deposits increased by $1.1 billion from the prior quarter.

Commercial and business lending increased $338 million from the prior quarter.

Total Revenue
$342M
Previous year: $259M
+32.3%
EPS
$0.57
Previous year: $0.53
+7.5%
Net Interest Margin
2.81%
Previous year: 2.69%
+4.5%
Cash and Equivalents
$544M
Previous year: $924M
-41.1%
Total Assets
$43B
Previous year: $41B
+4.9%

Associated Bank

Associated Bank

Forward Guidance

Associated Banc-Corp anticipates total period end loan growth of 5% to 6%, total deposit growth of 1% to 2%, core customer deposit growth of 4% to 5%, and net interest income growth of 12% to 13% in 2025. Total noninterest income growth is expected to be between 0% and 1%, and total noninterest expense to grow by 3% to 4%. The annual effective tax rate is projected to be between 19% and 21%.

Positive Outlook

  • Total period end loan growth of 5% to 6% is expected.
  • Total deposit growth of 1% to 2% is anticipated.
  • Core customer deposit growth of 4% to 5% is projected.
  • Total net interest income growth of 12% to 13% is expected.
  • The annual effective tax rate is expected to be between 19% and 21%.

Challenges Ahead

  • Total noninterest income growth is expected to be between 0% and 1%.
  • Total noninterest expense is expected to grow by 3% to 4%.
  • Provision will adjust to reflect risk grades, economic conditions, loan volumes, and other indications of credit quality.
  • Guidance assumes no change in the corporate tax rate.
  • 2024 was a year of significant progress for Associated, but results for the year and quarter ended December 31, 2024 were impacted by several nonrecurring items.