CashNews.co
-
Diluted EPS: $0.56 per share.
-
Core Customer Deposit Growth: Over 2% from the prior quarter and 2% year-over-year.
-
Total Loan Growth: Over 1%, led by C&I and auto loans.
-
Net Interest Margin: Increased by 3 basis points to 2.78%.
-
Net Interest Income (NII): $263 million, a $6 million increase from the prior quarter.
-
Non-Interest Income: Increased by $2 million, primarily from wealth management fees.
-
Total Non-Interest Expense: $201 million for the quarter.
-
Efficiency Ratio: Decreased to 60.4%.
-
CET1 Ratio: 9.72%, a 33-basis-point increase from the end of 2023.
-
Provision for Credit Losses: $21 million added, with ACL increased by 1 basis point.
-
Net Charge-Offs: $13 million, with a net charge-off ratio of 0.18%.
-
Non-Accrual Loans: Decreased to $128 million.
-
Core Customer Deposit Growth Forecast: Expected to finish 2024 at the lower end of the 3% to 5% range.
-
Net Interest Income Growth Forecast: Between 0% and 1% for 2024.
-
Non-Interest Income Growth Forecast: Negative 1% to positive 1% for 2024.
-
Non-Interest Expense Growth Forecast: 1% to 2% for 2024, excluding FDIC special assessment.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
Associated Banc-Corp (NYSE: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.