NYSE$ASB

Associated Banc-Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Associated Bank reported first quarter results, driven by core market strength and strategic plan execution.

Associated Banc-Corp reported a net income available to common equity of $100 million, or $0.66 per common share, for the quarter ended March 31, 2023. The results were driven by the strength and stability of the company's core markets and ongoing efforts to deepen customer relationships. Total loans and deposits grew, and positive operating leverage was achieved while maintaining a conservative approach to risk management.

  • Total period end commercial loans increased $175 million to $18.2 billion.
  • Total period end consumer loans increased $233 million to $11.0 billion.
  • Total period end deposits increased $696 million to $30.3 billion.
  • Net interest margin decreased 24 basis points to 3.07%.

Headline financials

Total Revenue

$336M

Previous: $262M+28.2%
EPS (adj)

$0.66

Previous: $0.47+40.4%
Net Interest Margin

3.1%

Previous: 2.4%+26.9%
Efficiency Ratio

54.6%

Previous: 63.8%-14.3%
Free Cash Flow

$103M

Previous: $74.3M+39.2%
Net Income

$103M

Previous: $74.3M+39.2%
Operating Income

$143M

Previous: $201M-28.9%
Gross Profit

$318M

Previous: $258M+23.2%
Cash & Equivalents

$822M

Previous: $501M+64.1%
Total Assets

$40.7B

Previous: $35B+16.4%

Revenue & EPS history

Associated Bank · Revenue · Quarterly

$336M

Q1 2023+28.2%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
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 provided forward guidance for the full year 2023, including expectations for total loan growth, total average core customer deposit growth, total net interest income growth, total noninterest income compression, and total noninterest expense growth.

Tailwinds

  • Expects to drive full-year total loan growth of 6% to 8%.
  • Expects to drive total average core customer deposit growth of 1% to 3%.
  • Expects total net interest income growth of 13% to 15%.
  • Expects the 2023 effective tax rate to be between 20% and 21%, assuming no change in the statutory corporate tax rate.
  • The Company’s capital position remains strong, with a CET1 capital ratio of 9.45% at March 31, 2023.

Headwinds

  • Expects total noninterest income to compress by 8% to 10%.
  • Expects total noninterest expense to grow by approximately 4%.
  • In 2023, we expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
  • Nonaccrual loans of $118 million were up $6 million from the prior quarter and down $26 million from the same period last year.
  • First quarter 2023 net charge offs of $3 million were up compared to net charge offs of $1 million in the prior quarter and were up compared to a net recovery of $2 million in the same period last year.

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 2023

Historical avgQ1 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro