NYSE$ASB

Associated Banc-Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Associated Bank reported a net loss for Q4 2023 due to one-time items related to balance sheet repositioning, while full-year earnings were impacted by increased provision for credit losses.

Associated Banc-Corp reported a net loss of $94 million, or $(0.62) per common share, for the quarter ended December 31, 2023. The loss was primarily driven by one-time items associated with the balance sheet repositioning. Full year 2023 earnings were $1.13 per common share.

  • End of period total loans of $29.2 billion decreased 3% from the prior quarter, driven primarily by a sale of $969 million in residential mortgages.
  • End of period deposits of $33.4 billion were up 4% from the prior quarter.
  • Net interest income of $253 million decreased $1 million from the prior quarter.
  • Noninterest income of negative $131 million decreased $198 million from the prior quarter and decreased $193 million from the same period last year.

Headline financials

Total Revenue

$259M

Previous: $351M-26.2%
EPS (adj)

$0.53

Previous: $0.70-24.3%
Net Interest Margin

2.7%

Previous: 3.3%-18.7%
CET1 Capital Ratio

9.4%

No prior period
Net Income

-$90.8M

Previous: $109M-183.5%
Operating Income

-$138M

Previous: $134M-202.9%
Gross Profit

$122M

Previous: $331M-63.2%

Revenue & EPS history

Associated Bank · Revenue · Quarterly

$259M

Q4 2023-26.2%vs Q4 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 anticipates several financial outcomes for 2024, including loan and deposit growth, net interest income increase, and adjustments to noninterest income and expenses.

Tailwinds

  • Total loan growth of 4% to 6% on an end of period basis.
  • Core customer deposit growth of 3% to 5% on an end of period basis.
  • Total net interest income growth of 2% to 4%.
  • Annual effective tax rate to be between 19% and 21%.
  • Adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.

Headwinds

  • Total noninterest income to decrease by 0% to 2% after adjusting to exclude the impact of one time items.
  • Total noninterest expense to grow by 2% to 3% after adjusting to exclude the impact of the FDIC special assessment.
  • Expects to adjust provision to reflect changes to risk grades.
  • Uncertain economic conditions.
  • Noninterest income one time items include a $136 million loss on a mortgage portfolio sale and $65 million in investment securities losses.

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 Q4 2023

Historical avgQ4 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%

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