Q3 2024 Associated Banc-Corp Earnings Call Transcript
Key Points
- Associated Banc-Corp (ASB) reported a strong asset quality trend, with non-accruals and net charge-offs decreasing meaningfully during the quarter.
- The company achieved a 2% growth in core customer deposits from the prior quarter, demonstrating the effectiveness of their strategic initiatives.
- ASB's net interest margin increased by 3 basis points, driven by balance sheet growth and an expansion of asset yields.
- The company saw a $6 million increase in net interest income and a $2 million increase in non-interest income, led by growth in wealth management fees.
- ASB's CET1 ratio improved to 9.72%, marking the highest level since Q1 2022, reflecting strong capital accretion.
- The company expects total loan growth to land at the lower end of their original 4% to 6% range for 2024.
- ASB's non-interest expense increased to $201 million for the quarter, driven by legal, professional, and FDIC assessment costs.
- The company anticipates net interest income growth of only 0% to 1% for 2024, indicating limited upside in the current rate environment.
- ASB's criticized and classified loans increased, primarily due to migration within CRE loans, though not seen as a systemic issue.
- The company expects core customer deposit growth to finish 2024 at the lower end of their original 3% to 5% growth range.
Good afternoon, everyone and welcome to Associated Banc-Corp's third-quarter 2024 earnings conference call. My name is Paul, and I will be your operator today. (Operator Instructions)
Copies of the slides that will be referenced during today's call are available on the company's website at investor.associatedbank.com. As a reminder, this conference call is being recorded.
As outlined on slide 1, during the course of the discussion today, management may make statements that constitute projections, expectations, beliefs or similar forward-looking statements. Associated actual results could differ materially from the results anticipated or projected in any such forward-looking statements.
Additional detailed information concerning the important factors that could cause Associated's actual results to differ materially from the information discussed today is readily available on the SEC website in the risk factors section of Associated's most recent Form 10-K and subsequent SEC filings. These factors are incorporated herein by reference.
For a reconciliation of the non
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