ASB - Associated Banc-Corp (ASB) Q2 2024 Earnings Call Transcript

2024-07-25 21:28:08 ET

Associated Banc-Corp (ASB)

Q2 2024 Earnings Conference Call

July 25, 2024 5:00 PM ET

Company Participants

Andy Harmening – President and Chief Executive Officer

Derek Meyer – Chief Financial Officer

Pat Ahern – Chief Credit Officer

Conference Call Participants

Daniel Tamayo – Raymond James

Scott Siefers – Piper Sandler

Timur Braziler – Wells Fargo Securities

Terry McEvoy – Stephens Inc.

Jon Arfstrom – RBC Capital Markets

Presentation

Operator

Good afternoon, everyone, and welcome to Associated Banc-Corp's Second Quarter 2024 Earnings Conference Call. My name is Paul, and I will be your operator today. At this time, all participants are in a listen-only mode. We will be conducting a question-and-answer session at the end of the conference. Copies of the slides that will be referenced during today's call are available on the Company's website at investor.associatedbank.com. As a reminder, this conference call is being recorded. As outlined on Slide 1, during the course of the discussion today, management may make statements that constitute projections, expectations, beliefs or similar forward-looking statements. Associated's actual results could differ materially from the results anticipated or projected in any such forward-looking statements.

Additional detailed information concerning the important factors that could cause Associated's actual results to differ materially from the information discussed today is readily available on the SEC website in the Risk Factors section of Associated's most recent Form 10-K and subsequent SEC filings. These factors are incorporated herein by reference. For a reconciliation of the non-GAAP financial measures to the GAAP financial measures mentioned in this conference call, please refer to Pages 30 through 32 of the slide presentation and to Pages 10 and 11 of the press release financial tables. Following today's presentation, instructions will be given for the question-and-answer session.

At this time, I would like to turn the conference over to Andy Harmening, President and CEO, for opening remarks. Please go ahead, sir.

Andy Harmening

Well, thank you Paul, and good afternoon. I'm Andy Harmening and I'm joined once again by our Chief Financial Officer, Derek Meyer; and our Chief Credit Officer, Pat Ahern. I'd like to start off by sharing some highlights from the quarter and then from there, Derek will provide a few updates on our margin, income statement and capital trends, and Pat will provide an update on credit. Midway through 2024, we have remained squarely focused on supporting our markets while continuing to execute on our plans to grow our customer base, deepen our relationship and enhance our profitability. In the context of the broader U.S. economy, we remain pleased with the stability and resilience of our upper Midwest footprint.

Several states, including Wisconsin and Minnesota, remain below 3% unemployment. Our prime, super prime consumer base has largely taken inflation in stride and our commercial clients have remained upbeat while navigating a challenging rate environment. With these trends as a backdrop, our credit performance remains solid here in the second quarter. Delinquencies, criticized loans and net charge-offs all decreased versus the prior quarter, and we've steadily added to our provision over the past several quarters.

To date, we have yet to see any meaningful negative trends that are concerning with regards to specific asset classes or geographies. This stability is a reflection of our home markets, but it's also a reflection of our disciplined proactive approach we've taken as a company. We've anchored ourselves in familiar Midwest markets and we've developed a diversified CRE portfolio with limited exposure to downtown office properties and other key pressure points. And while we're pleased with the results we've seen to date, our experienced team remains vigilant, methodical in reviewing our portfolios on a continual basis to ensure we're staying ahead of any issues that may emerge down the road....

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