NYSE$ASB

Associated Banc-Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported first quarter net income available to common equity of $89 million, or $0.58 per common share.

Associated Banc-Corp reported a strong first quarter with net income available to common equity of $89 million, or $0.58 per common share, driven by strong credit dynamics and the ongoing mortgage refinance wave. Average loans were up 5% and average deposits were up 10%. The company is optimistic about growth later in the year due to the improving credit outlook and strong fee income trends.

  • Average loans of $24.5 billion were up 5%, or $1.2 billion year-over-year.
  • Average deposits of $26.8 billion were up 10%, or $2.5 billion year-over-year.
  • Net income available to common equity of $89 million increased 112%, or $47 million year-over-year.
  • Earnings per common share of $0.58 increased 115%, or $0.31 per common share year-over-year.

Headline financials

Total Revenue

$271M

Previous: $301M-10.0%
EPS (adj)

$0.58

Previous: $0.28+107.1%
Net Interest Margin

2.4%

Previous: 2.8%-15.8%
Tangible Book Value

$16.95

Previous: $14.64+15.8%
Efficiency Ratio

64.0%

Previous: 68.5%-6.6%
Free Cash Flow

$94.3M

Previous: $45.8M+105.7%
Net Income

$94.3M

Previous: $45.8M+105.7%
Operating Income

$195M

Previous: $152M+28.3%
Gross Profit

$255M

Previous: $245M+4.1%
Cash & Equivalents

$1.95B

Previous: $1.34B+45.7%
Total Assets

$34.6B

Previous: $33.9B+2.0%

Revenue & EPS history

Associated Bank · Revenue · Quarterly

$271M

Q1 2021-10%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Associated Bank · $9.67M total across 1 segment · Q4 2021

  • Capital Markets
    $9.67M+64.0%

Forward guidance

Associated Banc-Corp anticipates commercial loan growth of 2% to 4% for the full year 2021, driven by an expected 4% to 6% increase in CRE balances and an expected 1% to 2% increase in C&BL outstandings, excluding PPP. The company expects the full year's margin to be approximately 2.45% to 2.55% in 2021. Noninterest income is expected to be $310 million to $330 million in 2021, and noninterest expense is expected to be approximately $690 million to $695 million. The annual 2021 tax rate is expected to be between 19% to 21%, assuming no change in the corporate tax rate. The full year 2021 provision is expected to be nominal.

Tailwinds

  • Commercial loan growth of 2% to 4% expected in 2021.
  • CRE balances are expected to increase 4% to 6%.
  • C&BL outstandings are expected to increase 1% to 2%, excluding PPP.
  • Full year's margin expected to be approximately 2.45% to 2.55% in 2021.
  • Annual 2021 tax rate expected to be between 19% to 21%.

Headwinds

  • Guidance assumes no change in the corporate tax rate.
  • Nominal full year 2021 provision, implying limited credit loss reversals.
  • Expected noninterest expense of $690 million to $695 million.
  • Noninterest income is expected to be $310 million to $330 million in 2021.
  • The company expects full year commercial loan growth of 2% to 4% in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+2.0%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+9.5%

Q1 2018

Best reaction

-9.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%-1.0%-1.2%
Q4 2025-3.9%-2.4%+4.0%
Q3 2025+0.7%-2.0%+1.2%
Q2 2025-2.4%-0.5%+3.1%
Q1 2025+1.4%+0.2%+4.5%
Q4 2024-0.8%-2.4%-3.5%
Q3 2024+2.0%+4.9%+21.6%
Q2 2024+3.5%+0.2%-2.6%
Q1 2024+1.1%-1.3%-0.5%
Q4 2023-1.0%+0.0%-5.6%
Q3 2023-6.1%-6.2%+10.3%
Q2 2023-2.0%-3.0%-6.5%
Q1 2023-3.0%-8.1%-17.6%
Q4 2022-0.9%+1.1%+6.4%
Q3 2022+2.6%+6.8%+9.3%
Q2 2022+2.7%+3.7%+13.1%
Q1 2022-5.9%-9.5%-12.8%
Q4 2021-0.1%+0.2%+2.2%
Q3 2021-1.2%+0.2%+1.5%
Q2 2021+0.0%-0.6%+6.7%
Q1 2021+0.6%+2.9%+9.0%
Q4 2020-2.9%-5.3%-1.5%
Q3 2020+3.8%-1.2%+13.7%
Q2 2020+3.4%-1.1%-0.8%
Q1 2020+8.2%+14.4%+10.9%
Q4 2019-1.3%-2.5%-5.1%
Q3 2019-2.0%-0.8%+4.8%
Q2 2019+0.8%+1.4%-11.7%
Q1 2019-0.3%+1.3%-5.7%
Q4 2018+3.5%+4.3%+11.1%
Q3 2018-9.1%-10.3%-8.2%
Q2 2018-1.6%-1.6%-3.7%
Q1 2018+9.5%+9.9%+11.4%
Q4 2017-1.6%-2.7%-1.6%
Q3 2017+6.1%+5.1%+0.2%
Q2 2017-5.1%-3.7%-11.4%
Q1 2017+4.8%+6.3%+2.1%
Q4 2016+1.9%+4.1%+7.8%
Q3 2016-0.5%+0.0%+16.6%
Q2 2016+2.8%+3.8%+9.8%
Q1 2016-0.3%
Q4 2015-0.9%
Q3 2015+2.8%
Q2 2015-1.8%
Q1 2015-1.6%
Q4 2014+2.5%
Q3 2014+1.1%
Q2 2014-0.5%
Q1 2014-0.6%
Q4 2013+0.9%
Q3 2013+0.6%
Q2 2013-0.7%
Q1 2013+3.6%
Q4 2012+0.3%
Q3 2012+0.5%
Q2 2012+2.8%
Q1 2012-0.1%
Q4 2011+0.6%
Q3 2011-1.6%
Q2 2011-5.1%
Q1 2010-0.9%
Q1 2011+2.7%
Q4 2008+0.5%
Q4 2010+0.5%
Q4 2009+0.5%
Q3 2009+5.6%
Q3 2010+5.6%
Q2 2009+1.0%
Q2 2010+1.0%

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