Associated Banc-Corp has recently released its 10-K report, providing a comprehensive overview of the company's financial performance and operations. The bank holding company offers a wide range of banking and nonbanking products and services to individuals and businesses in Wisconsin, Illinois, and Minnesota. It includes lending solutions, deposit and cash management services, specialized financial services, fiduciary services, investable funds solutions, and deposit and transactional solutions. The company's primary sources of revenue are net interest income and noninterest income, with a focus on commercial and business lending, residential mortgages, and auto finance.
In the 10-K report, the company's management discussed the financial condition and results of operations for 2024 compared to 2023. The report highlighted several key performance indicators, including diluted earnings per common share, average loans, average deposits, net interest income, provision for credit losses, noninterest income, and noninterest expense.
The report indicated that diluted earnings per common share in 2024 decreased by 36% from 2023, mainly due to nonrecurring items related to the balance sheet repositioning announced in the fourth quarter of 2024. Average loans increased by 1% in 2024 compared to the previous year, driven by growth in auto finance and commercial and business lending. Average deposits also saw a 7% increase in 2024 compared to 2023.
Net interest income in 2024 increased by $8 million, or 1%, from 2023, while the net interest margin decreased by 3 basis points. The provision for credit losses was $85 million in 2024, compared to $83 million in 2023. Noninterest income in 2024 decreased by $73 million from 2023, primarily due to higher investment securities losses related to nonrecurring items from the balance sheet repositioning announced in the fourth quarter of 2024.
The report also provided a detailed analysis of net interest income, interest rate spread, and net interest margin, showing the average balance, interest income/expense, and yield/rate for earning assets and interest-bearing liabilities. The report discussed the notable contributions to the change in net interest income, including factors such as changes in loan and investment balances, interest-bearing liabilities, and interest rates.
Furthermore, the report outlined noninterest income for the years ended December 31, showing changes in wealth management fees, service charges and deposit account fees, card-based fees, and other fee-based revenue. It also discussed capital markets, mortgage banking, bank and corporate owned life insurance, and other sources of noninterest income, along with asset and investment securities losses and gains.
Today the company's shares have moved -2.1% to a price of $24.72. For the full picture, make sure to review Associated Banc-Corp's 10-K report.
