NYSE$ASB

Associated Banc-Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported net income available to common equity, driven by robust loan growth, expanding margins, stable deposits, and resilient credit.

Associated Banc-Corp reported a net income available to common equity of $84 million, or $0.56 per common share, for the quarter ended June 30, 2022. The results were driven by strong loan growth, expanding margins, stable deposits, and resilient credit quality.

  • Total commercial loans were up $1.2 billion to $16.8 billion.
  • Total consumer loans were up $766 million to $9.7 billion.
  • Total deposits were up $171 million to $28.6 billion.
  • Net interest margin was up 29 basis points to 2.71%.

Headline financials

Total Revenue

$292M

Previous: $253M+15.3%
EPS (adj)

$0.56

Previous: $0.56+0.0%
Net Interest Margin

2.7%

Previous: 2.4%+14.3%
ACLL to Total Loans

1.2%

No prior period
Nonaccrual Loans to Loans

0.4%

No prior period
Free Cash Flow

$86.8M

Previous: $91M-4.6%
Net Income

$86.8M

Previous: $91M-4.6%
Operating Income

$222M

Previous: $164M+35.1%
Gross Profit

$292M

Previous: $229M+27.2%
Cash & Equivalents

$834M

Previous: $1.75B-52.3%
Total Assets

$37.2B

Previous: $34.2B+9.0%

Revenue & EPS history

Associated Bank · Revenue · Quarterly

$292M

Q2 2022+15.3%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Capital Markets
    $9.67M+64.0%

Forward guidance

The company expects full-year total commercial loan growth of approximately $1.7 billion and auto finance loan growth of approximately $1.3 billion in 2022. They also expect 2022 net interest income to exceed $890 million and total noninterest expense of approximately $730 million to $740 million.

Tailwinds

  • Short-term interest rates are expected to rise by 75 basis points following the Federal Open Market Committee (FOMC) meeting in July.
  • A 25 basis point increase is expected at each remaining FOMC meeting this year.
  • 2022 net interest income is expected to exceed $890 million.
  • Full-year total commercial loan growth of approximately $1.7 billion is expected.
  • Auto finance loan growth of approximately $1.3 billion is expected.

Headwinds

  • Shifting economic environment necessitates a disciplined focus on credit quality.
  • Mortgage Banking, net was down $2 million from the same period last year and down $2 million from the prior quarter, driven by slowing refinance activity and higher retention of mortgages on our balance sheet.
  • Wealth management fees decreased $1 million from the same period last year and decreased $1 million from the prior quarter.
  • Total noninterest expense of approximately $730 million to $740 million for 2022 is expected.
  • The effective tax rate for second quarter of 2022 was 21.2% compared to an effective tax rate of 20.1% in the prior quarter.

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 Q2 2022

Historical avgQ2 2022

+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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