Associated Banc-Corp Roars into 2025 with Strong Q4 Earnings and Future Prospects
Associated Banc-Corp kicked off the new year on a high note, delivering solid financial results in the fourth quarter of 2024. The company's president and CEO, Andy Harmening, highlighted key takeaways from the quarter during the earnings conference call on January 23rd.
In his opening remarks, Harmening noted that the U.S. economy is showing signs of strength, with unemployment rates in Wisconsin, Minnesota, and other Midwestern states remaining below the national average. This stability has enabled Associated to remain proactive in executing its growth strategy, which included launching a new specialty deposit and payment solutions vertical, raising over $300 million of new capital through a common stock issuance, and repositioning the balance sheet by selling low-yielding mortgage loans and AFS securities.
The company's commercial customers are cautiously optimistic about their growth prospects in 2025, which has allowed Associated to position itself for strong performance. Harmening emphasized that the continued stability of the Midwest economy has enabled them to remain front-footed with their growth strategy, adding that they have added two widely respected business leaders to their Board of Directors and elevated several senior business line leaders to the executive leadership team.
One of the key highlights from the quarter was the delivery of strong financial results. Associated reported adjusted loan growth of over $500 million and core customer deposit growth of nearly $900 million, while maintaining stability and discipline with regards to credit risk. Harmening noted that these actions have positioned Associated for strong performance in 2025 and beyond.
The company's Chief Financial Officer, Derek Meyer, covered margin, income statement, and capital trends during the call, highlighting that the fourth quarter results were impacted by nonrecurring items tied to the balance sheet repositioning. After excluding these nonrecurring items, Associated reported adjusted earnings per share of $0.57.
Chief Credit Officer Pat Ahern provided an update on credit, noting that the company's prime and super prime consumer borrowers have remained resilient, and commercial customers are cautiously optimistic about their growth prospects in 2025. This continued stability has enabled them to remain proactive in executing their growth strategy.
As Associated enters 2025, it is positioned to play offense with a strong consumer value proposition, a growing customer household base with deepened relationships, and an expanding commercial team with deep expertise and capabilities. The company's enhanced profitability profile from the balance sheet repositioning announced in December has also set them up for success.
With a solid foundation in place, Associated Banc-Corp is poised to tackle the challenges of 2025 with confidence. Their commitment to organic growth strategies, combined with their focus on maintaining stability and discipline with regards to credit risk, positions them well for continued success in the year ahead.
