On October 19, 2023, Associated Banc-Corp (ASB, Financial) reported its third-quarter earnings for 2023. The company's net income available to common equity ("earnings") was $80 million, or $0.53 per common share. This is a decrease from earnings of $84 million, or $0.56 per common share, for the quarter ended June 30, 2023, and earnings of $93 million, or $0.62 per common share, for the quarter ended September 30, 2022.
Performance and Challenges
Despite the decrease in earnings, ASB saw steady improvements in customer acquisition, retention, and satisfaction scores during the quarter. This enabled the company to grow core customer deposits by over $500 million and decrease its reliance on non-customer funding sources. However, the banking environment continues to evolve, posing challenges for the company.
Financial Achievements
ASB's strategic initiatives have enabled it to deliver another quarter of balanced, high-quality loan growth. Total period end commercial loans increased $68 million to $18.5 billion, and total period end consumer loans increased $276 million to $11.7 billion. Total period end deposits also increased $109 million to $32.1 billion.
Income Statement Highlights
ASB's net interest income for Q3 2023 was $254 million, a decrease of $4 million, or 1%, from the prior quarter and a decrease of $10 million, or 4%, from the same period last year. The net interest margin decreased to 2.71%, reflecting a 9 basis point decrease from the prior quarter and a 42 basis point decrease from the same period last year.
Balance Sheet and Cash Flow Statement Highlights
ASB's total assets as of September 30, 2023, were $41.6 billion, an increase from $41.2 billion as of June 30, 2023. The company's capital position remains strong, with a CET1 capital ratio of 9.55% at September 30, 2023.
Looking Forward
While ASB feels well-positioned today, it recognizes that the banking environment continues to evolve. The company looks forward to sharing more details about the second phase of its strategic plan later this quarter.
