NYSE$ASB

Associated Banc-Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported net income available to common equity of $80 million, or $0.53 per common share, driven by balance sheet growth and continued progress against strategic initiatives.

Associated Banc-Corp reported a net income available to common equity of $80 million, or $0.53 per common share, for the third quarter of 2023. The results were driven by balance sheet growth and progress against the Company's strategic initiatives. Total period end deposits increased $109 million to $32.1 billion.

  • Total period end commercial loans increased $68 million to $18.5 billion.
  • Total period end consumer loans increased $276 million to $11.7 billion.
  • Total period end deposits increased $109 million to $32.1 billion.
  • Quarterly net interest margin decreased 9 basis points to 2.71%

Headline financials

Total Revenue

$321M

Previous: $335M-4.3%
EPS (adj)

$0.53

Previous: $0.62-14.5%
Net Interest Margin

2.7%

Previous: 3.1%-13.4%
CET1 Capital Ratio

9.6%

No prior period
Nonaccrual Loans to Loans

0.6%

No prior period
Efficiency Ratio

56.7%

No prior period
Free Cash Flow

$83.2M

Previous: $96.3M-13.5%
Net Income

$83.2M

Previous: $96.3M-13.5%
Operating Income

$15.7M

Previous: $216M-92.7%
Gross Profit

$299M

Previous: $318M-6.1%
Cash & Equivalents

$389M

Previous: $498M-22.0%
Total Assets

$41.6B

Previous: $38B+9.4%

Revenue & EPS history

Associated Bank · Revenue · Quarterly

$321M

Q3 2023-4.3%vs Q3 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 expects full-year total loan growth of 5% to 6% in 2023. The company continues to expect total core customer deposits to decrease by 3% in 2023, with 2% growth in the second half of the year. Total net interest income growth of 8% to 10% is expected in 2023. Total noninterest income is expected to compress by 8% to 10% in 2023. Total noninterest expense growth of 3% to 4% is expected in 2023, excluding any nonrecurring items incurred in the fourth quarter. The 2023 effective tax rate is expected to be between 20% and 21%.

Tailwinds

  • Full-year total loan growth of 5% to 6% is expected in 2023.
  • 2% growth in core customer deposits is expected in the second half of the year.
  • Total net interest income growth of 8% to 10% is expected in 2023.
  • The Company’s capital position remains strong
  • The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.

Headwinds

  • Total core customer deposits are expected to decrease by 3% in 2023.
  • Total noninterest income is expected to compress by 8% to 10% in 2023.
  • Nonaccrual loans of $169 million were up $37 million from the prior quarter
  • Third quarter 2023 net charge offs of $18 million were up compared to net charge offs of $11 million in the prior quarter
  • While we feel well positioned today, we recognize that the banking environment continues to evolve

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 Q3 2023

Historical avgQ3 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