ASB - Earnings call transcript Q4 2024

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Operator

Good afternoon, everyone, and welcome to the Associated Banc-Corp's Fourth Quarter 2024 Earnings Conference Call. My name is Matt, and I'll be your operator today. [Operator Instructions] 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.

differ such the forward-looking could projected anticipated results any in statements. actual materially results from or Associated's

Additional detailed the factors filings. information website most cause reference. is Associated's recent concerning by available are and the important results readily and section differ incorporated factors the to Form Risk herein materially of the XX-K These from on information Factors today actual discussed SEC that Associated's could SEC subsequent

mentioned in a of the measures financial For to of GAAP to XX refer release financial these the and the of and XX conference to measures this Pages reconciliation non-GAAP presentation Pages through please XX tables. press call, financial XX slide

given today's session. the question-and-answer Following be instructions presentation, for will

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

Andrew Harmening

Pat good Meyer; and everyone, I'm Financial Harmening. I'm quarter to our our once fourth and Officer, Chief Andy our Chief afternoon, Well, by Officer, again Ahern. joined Derek earnings call. welcome Credit

to start there, Derek I From highlights capital statement credit. margin, income update provide fourth cover trends, on XXXX. off and the an some want Pat of will will quarter by sharing and from

We in economy. closer the other of Midwestern the home, below national of signs well And the rates Midwest, continue remarkably average situation X.X%. in Minnesota U.S. the stable. remained and several see to has Unemployment to Wisconsin, strength in states remained

company. cautiously customers and to was execution stability super the and about continued fourth remain growth are commercial prime prime growth for Our active optimistic our one strategy, with our prospects remained consumer of front-footed have us our an XXXX. quarter and their borrowers enabled has This the in resilient,

and mortgage and stock through repositioning, new vertical. through of worth and in a work low-yielding payment $XXX raised common in put selling AFS $XXX a portion $X.X new capital a commercial loans the We over capital issuance balance added that to approximately specialty our of million capabilities million solutions a of to billion securities. through We launch deposit sheet

card balances agreement Financial also in We $XX expansion participation million Services. purchased an Elan through credit customer of credit our existing customer with

of RMs the During Head our Head Head the leaders respected Deputy of Phil Board senior executive Owen business leadership Commercial also and Sullivan. Corporate X Commercial quarter, Kristen Estate, widely we and Banking, And to the elevated we Greg Business commercial We business growing Steve addition team Banking, to and and of our team. and several leaders Trier; line high-quality Zandpour. of of Consumer announced welcomed X Ludgate Real Warsek; Deputy Directors our to in

results during Importantly, strategies. we our delivered also growth from to continued strong we've financial the as organic quarter benefit

Here risk. growth $XXX in nearly over credit delivered core discipline million, customer $XXX with growth and regards we of loan to deposit while adjusted of stability and maintaining million QX,

we're we XXXX, stacks to and that offense forward anyone look repositioning positioned with we we the capabilities, base improving an As to with enhanced a profitability sheet December. and the up from industry, year consumer customer are household expertise with entering customer profile with growing a results, the play an proposition value deep announced relationships, and satisfaction expanding team commercial and balance strong in deepened in

actions 'XX in for performance Taken together, beyond. positioned these have and strong Associated

XXXX like financial from some I'd on walk highlights the whole, and that, to through beginning With X. additional quarter a Slide as

repositioning $X.XX. businesses by per these core our impacted emerging momentum nonrecurring quarter we share to excluding After the in items reflected were through items, nonrecurring sheet results fourth Our tied of December. adjusted announced the was balance earnings of

the starting million loans adjusting by by over after growth nearly story to during deposits December. the grew for in customer mortgage other take commercial the segments. on quarter. business is grew our balance came million and An $XXX growth sheet, our loan we business Over million And lending side $XXX sale hold. the $XXX that emerging Core announced commercial in of of total within

of the growth said with is fund intention in core our loan to customer did our along all XXXX, that we that. We've just majority deposits. And

grew we or billion X.X%. and by for X.X% by $X.X customer or remain of the loans us XXXX. adjusted core deposits For billion This point a year, in $X.X emphasis will

income Shifting to the statement.

$X net QX Our interest $XXX increased income and million finished at from million.

of Our benefit points the repositioning, our XXXX. expect X.XX%. from Due in most margin margin the basis of increased X the transaction to of sheet we to timing realize to here balance QX

nonrecurring Our balance to an during But tied quarterly saw our $X increase. QX. basis, GAAP million by noninterest income on items a was sheet adjusted impacted repositioning we

million support of $XXX expenses finished we've staying strategic of Total growth disciplined plan, while continued And at focus remains to adjusted foundational make noninterest a our for the our quarter. in expense company. investments on

risk. Another managing credit is foundational focus

Here better staying can loan in In that risk loans, decreased so risk nonaccrual in segment charge-offs QX, the to ratings and curve consistent portfolio versus our we year. of committed the we to ahead all understand quarter and last remain disciplined, geography. same by by taking prior our a approach provision credit both XXXX, period and the

impact breakdown items we Slide of a On provided that from in impacted nonrecurring X, QX. our several EPS detailed financial results

items $XXX million. we balance our the $XXX the security from income million we quarter net impacted repositioning completed. the loss million announced noninterest income sale by mortgages the a $XXX reduced Combined, of during and sale loss First, statement these sheet through another on

we million our card on impact slightly by net a Second, release the increased due mortgage to of provision sale the from finally, purchased loss was And tied expense our $XX of a build during the of noninterest a impacted the FHLB loans to and total the quarter. credit repositioning. balances prepayment advances from

quarter. adjusted came that our adjusted $X.XX confidence gives path XXXX. strength our This in tax, underscores the the on of us we strategic the move of core right businesses as a at and for EPS number we're into plan positive Net with our

are more on key those track leadership to we've over than X. We've recent as in having executive impact. right short have XX significant leadership I'm as QX, and also increased relationships, of confident hires late made who to and sales This Shifting the In months, that company role includes been that a she's the of an I several business retirement her emerge, joined higher we're seen the thanks hires XXXX. Slide for other progress the it Jayne tailwinds includes 'XX. first. members since XX to made course added And past ever our several started Hladio, to the we've plans in but in new services. President more Private stepped team into time X Wealth here, already referrals activity and

scores, better industry, household a can and can with and that high consumer us proposition in we with anyone which those just deepen relationships positive customers equipped new to ones. seen quality be have improved has Second, trends The customer compete households. about attract existing value record growth of in now the our satisfaction results

momentum current but Given by XXXX we be market the expectations we've for to dynamics, tweaked net seen date. household continue encouraged our to we've growth

to By which Third, I efforts shifting lending of high from model abandoning out total an progress loan without total to loans of getting to of has and our loan approach our TPO we've to reduced profitable continued make year-end, lending, of provided before categories. more loans consumer we've of resi balance in credit. here XX% capacity our grow on got conservative diversify our XX% a sheet, to concentration as portfolio to repositioning originate-to-sell our

central XX We've a XX And and of QX. fully banking strategy. hiring planned of component have the expect commercial is our added completed end finally, growth by hires of to

across footprint mentioned XXXX As of sheet our as these new pipelines. the the balance to settle increase previously, RMs build we respective and throughout expect impact their new hires in

the quarter. growth over again sold On repositioning, loans C&I, Slide X, as by through led once increased After trends million $XXX we This excluding which QX. loan by in balance of grew total million was by the in highlight part QX. our $XXX loans mortgage sheet

projects the by was $XXX CRE We investor the of during which driven QX. growth also saw construction completion in quarter, million in largely

continue activity we elevated in fourth to While the in quarters, were the payoffs coming expect limited quarter. payoff

we grew was the $XXX and in As The by we largely consumer by million million portfolio, $XX consumer purchased grow million. latter quarter. diversifying balances auto card we finance balances $XX the credit saw driven by categories during here continue in QX other our

basis. has our on XX% higher-return mortgage categories, trend portfolio approach reliance show by On all an into our Slide diversified annual total while growing XXXX, over and X, and since we residential loans loan conservative clear. decreased the We've And noncustomer loan low-yielding,, been on maintaining credit. trends our to

commercial back are the their first in in year, C&I the RMs accelerating of of million million has over traction half loans More After hired by half we This $XXX production. grew $XXX steadily recently, $XXX loans in of by in by particularly 'XX. the emerging business, year-end from total back year-end grew our been growing 'XX the year 'XX. as the to highlighted growth the we've half million

We have commercial clear the space. momentum in

in place. the have We leaders

continue pipelines Our build. hiring and is to largely complete

continue As growth loan year. loan X% the such, we growth and $X.X growth of full X% C&I to total bank improved broadly, profiles we mind, expect expect deliver returns. seek quality diversification More of in With credit relationships, selective that banking in this to we billion to for emphasizes XXXX.

and work that impacts down in driven over added or half CD deposits an that Moving of spot core nearly emerged deposits our On versus year, Slide interest-bearing our primarily mentioned and efforts sheet in X% QX. the was growth billion here adding sources down X, QX, We've Unlike we $XXX again the XXXX. grown expected. $X.X funding back grew money more enabled in market grow inflow years, balance deposits which by the wholesale by were in heavy the to of customer had customer savings consistently Total basis, show to clearly core X. categories. $XXX us expanded have basis. in expected We some up of quarter as funding core trend QX. On core The customer deposits Through annual wholesale reliance. annual played and the deposits saw back deposits once we a largely to average in over XXXX. pick demand, to has Slide our customer X.X% on million as we our out in growth QX, customer million deposit inflows, QX during

initiatives deepening customer As tailwinds look primarily we to continue on progress our as growth promising attracting, with look several we strategic and deposits, our XXXX, our relationships. is provided continue has loan funding retaining against and to customer to core intention

to for core X% X% expect year. customer to deposits we As the grow such, by

With to and the that, Derek through to walk income capital statement I'll pass it trends.

Derek Meyer

on with and trends. asset start liability our I'll Andy. yield X Thanks, Slide

September basis point in XX both the and Fed December, costs and liability quarter. yields earning fell the cuts during interest-bearing subsequent and cut Following meaningfully basis point fourth XX rate November asset in

portfolios the CRE loans in in XX decrease rate floating respond XX basis more stability quickly These commercial decreases were securities asset largely basis bank changes auto, point business Total point decreased rate were which quarter to offset earning that and by relative points fixed yields led in partially decrease during of rates. by lending a a resi XX books. and market in large our by and both basis

the our a function along with down points was the quarter. our interest-bearing costs On liability decreased efforts costs quarter during of other sheet, balance wholesale total to XX This during basis by the pay by the XX decrease funding. basis larger deposit side of ability decrease points to

Moving to XX. Slide

quarter. net Our million for $XXX million grew the $XX the prior $X interest of quarter XXXX, total QX landing versus income versus at and by million

Our margin to X.XX%. basis points interest by net X expanded

loan to of sale, in end due expected year, quarter, in securities reinvestment, the the the the the During advances. we the initial the end of which high-cost and sale our FHLB the of securities saw was by largely benefit closed timing the of refinancing by month, at NII settled timing the QX which be is the of driven to

net along the repositioning, expectations for on to between latest we interest and from growth our transactions. received that having sheet basis the a the from On have betas our we basis, our quarter's a Fed we drive net December, income XX% to made interest and Based including balance XXXX. sheet our deposit card in expect approximately estimate balance added points sheet benefit XX growth, of XX% full with forma balance credit action, in pro enhanced profitability repositioning, acquisition would balance more margin,

position. On proactive steps XX, provide of to Slide we've get a a taken we more asset sensitivity reminder the neutral

and has billion as book providing year-end, credit solid to $X.X auto with strong prepayment of a of assets base characteristics. risk rate Our fixed low grown

obligations set balances In billion. of $XX.X in finally, is in swap And as X we of maintained of notional XX, total. we billion QX, over approximately funding mature addition, which XX% or less as had of $X.X contractual the December to year

our ramp from XXX impact a these in over the were QX impact reduced together, NII asset is XXXX. about Taken of reduced to have X.X% down actions as at sensitivity scenario This modeling time we X.X% our representing with QX.

Our asset-sensitive going forward. to positioning goal maintain modestly is this

Shifting to XX. Slide

on largely as to in increased the of book sheet settlement securities securities a Our announced by $X.X purchases we increase with the the period-end driven billion repositioning December. of basis balance part

During from in at announced the in capital we saw in December, that in a common our repositioning XX% December. And pickup the after CETX work quarter, announced raised CETX the offering portion to we year-end. putting a thanks we to sheet landed at ratio, capital balance stock an even of

We securities the regulatory XX our gap ratio a decreased to sale. impact ratio reduction between AOCI points also due saw CETX AOCI just our in in our our such, And QX. CETX as basis and to plus

in would and securities XX% to ratio to assets our total to cash XX% XXXX. the to plus in range we Following quarter, for rose ratio the manage the XX% fourth the expect transaction,

income XX. are trends Slide highlighted noninterest Our on

a As and sheet announced in the income to in results, prior versus by banking loss tied by repositioning for $X income. $X increase this income, mortgage results in XXXX driven quarter, QX decrease versus we $XX Adjusting a at loss million fourth quarterly markets a Andy capital December. was and mentioned, the nonrecurring increase QX, our increase core came the was the figure. The noninterest reflected for million quarter adjusted BOLI a driven net our these our items in in offset partially GAAP million balance increases in representing and primarily

base deposit million. while mortgage grow X% expect and we X% income million. banking grew noninterest as by same period the grew XXXX, adjusted to both by million, by to year, XXXX $X management $X fees of to wealth fees Compared compared In income last $XXX to our

XX. Slide to Moving

sheet Our impacted advances fourth FHLB by as balance million were repositioning. of quarter a our part prepayment loss $XX the of expenses on

a adjusted expense increase acceleration an represents in quarterly including the Excluding third our but item, The QX initiatives, came of adjusted quarter that of This our million noninterest expenses. hiring personnel from $X adjusted in XXXX QX. from million in in this stemmed investments $X bulk our $XXX just expense nonrecurring our increase increased the at a QX. organic million number from increase

year, after noninterest on full our in the million nonrecurring came exclude For to expense loss $XXX adjusting FHLB the prepayment. the at

focused XXXX expect basis. growth rate on managing the expense plans, XXXX continued to we've our off support in to expense we people mind, we've of of also While remained invest $XXX million. squarely total in overall and that strategies run between growth our noninterest ongoing our X% With on base in adjusted an of and X%

On Slide we common the in our stock capital million board ratios saw of across raising again QX after November with $XXX XX, here once capital increase key offering.

portion of announced this capital While still balance we we we pre-transaction. a repositioning of to with maintain did work expect put did higher December, in level than we to the a sheet capital

point of increase XXXX. in X.XX% basis XX QX to to a increased increase to which XX relative ratio TCE QX, basis relative represents a and point Our QX

XX% steadily of XX ratio increase to of in points sale basis that currently With relative once a XXXX and at X QX. expect to of QX, incremental an basis CETX climbed closes said, loan CETX sits as our throughout we QX. benefits see here point Our

XXXX. manage the we XXXX we actions XX% the to for growth to XX.X% in Following our in range took QX, conditions, a and within of current expectations market CETX expect in

update hand on now Pat Credit I'll provide it credit Chief over Ahern, Officer, to to an quality.

Patrick Ahern

with on Thanks, Derek. XX. an I'll update start Slide allowance

rates, cooling a continued additional the of XXXX deceleration The CECL a of environment. slower GDP rate We consistent positive resilient forecast and baseline interest the hikes, high market forecast economy assumptions. contains Moody's forward-looking utilized monitoring remains forecast continued labor for but growth inflation no November market developments. Moody's baseline with ongoing despite The baseline our with rate

with in Our mortgage. finish by ACLL and the consumer residential million, partially increased increases million business by quarter QX commercial and and lending in to in decreases another $X other CRE at the $XXX categories, offset

risk increased credit stress, stable view reflected rather, stemmed QX. a significant at from loan points X largely in representing these a rating quarter to profiles. points basis feel we same credits Altogether, in to this The risk this last quarter, in adherence not ACLL. loans of by increase guidance, as migration an is the basis uptick criticized definition prior in acknowledging is shifts our it a ago into that indication credit of reserves X.XX%. to does not our bank our The but X reflection to commercial time loss ratio from shift do some the of Similar year from and period during

portfolio in the for from maintain from quarter, of Total to XX. Slide $XX of high trends. the loan $XX with credit bank-wide but in a degree quality of prior representing performance quality core to increased million million the continued We XXXX. $X Moving quarter, our a decrease a increase solid delinquencies our confidence million QX

We with continue and credit that's something not of line indicative in future necessarily are stress. to believe these course our business of trends normal

bucket, the quarterly to of coming at and credit have increase quarter-over-quarter in delinquencies both reflecting timing in some decreased was day and recent the limited to QX. XX-plus XX-day $X year-over-year, just Importantly, XX- completion million actions.

down the is was credit majority classified Further within and the conforming proactive and this changes. and of an increase indication do portfolio, QX, to this to C&I but increased not profile prior a we criticized in of significant approach a quarter. guidance CRE loans to categories. driven and The credit by industry total of a conservative shift Similar line, increase rather, reflection relative the of migration from feel the

see ongoing systemic and in commercial portfolios. dives don't deep We portfolio shift continue our our a

present remains in downgrades we fact, the resolution near-term market. in liquidity potential the see In of many noted as

in is the trends in positive Underpinning we're our nonaccruals. the seeing continued confidence portfolio

balances the of steady third pace to $XXX decreasing nonaccrual We million. for continue consecutive credits, within stress resolution a with quarter these total to see

commercial saw CRE as business we decreases and Importantly, nonaccruals in in QX both lending well. and

net Finally, lowest of represented the past million several in numbers during charge-offs $XX both we we've million the which quarters. and $XX provision, booked in the in quarter seen

As and of of balances a we $X Andy release sale mentioned, QX loans million card build a residential our provision million the mortgage quarter. during credit for for the December $X million $XX in announced in purchase provision included a

X charge-off ratio X.XX%. to decreased by net Our points basis

necessarily broader what give quarters. rating comfortable In specific is across summary, a handful of metrics that we level seen the bank. these the seen of road sign to future within credit of Overall, of outside and date a in confidence our migrating credits down us to not normalized situations, our continue we've issues in activity we've coming system the remain

forward, both Going reflects on macro concerns. to we name labor ensure remain to credit diligent inflation stressors shifting economy a monitoring the pressures few and underwriting current economic in market, just

continue to of we addition, portfolio, including effects analysis the attention rate the interest In elevated to interest on ongoing rates maintain sensitivity bank-wide. specific

risk expect and economic will rates, to We adjustments other future reflect loan provision any credit indications to quality. conditions, changes of continue volumes

remarks. pass will Andy With that, to I back now it for closing

Andrew Harmening

key Thank you, on balance Slide I'll with from XX, reiterating up Pat. wrap couple presentation our points of a sheet. starting the by

that seek We expect loan to full X% growth in and growth X% total profiles diversification XXXX. relationships, this in improved quality credit emphasizes returns. continue banking we selective to mind, With deliver to of

fund other expect loan a we the with of in continue the sheet, deposits. of side majority to growth customer growth our core On our balance to

X% X% core to grow deposits As to we by XXXX. such, in customer expect

enhanced along interest incorporated, balance our with for expect to net the front, revenue drive from forecast all XXXX. On deposit XX% between most repositioning. XX% profitability our With growth, adjusted and growth factors to balance sheet these Fed in income we've betas we the sheet action, recent

the challenged to our feel in years, We X% relative a by expect past base. adjusted in income encouraged the X% 'XX to durability of noninterest income environment to grow and XXXX over to our we also of continue by couple noninterest

our finally, expenses disciplined And foundational focus. to approach remains a

in of mind, continue to noninterest to to to we our X% X% in hold in We invest business support XXXX. to strategically expense a With growth. this growth range expect

that, questions. would And to I with open up it like for

Operator

from question is Scott from First Siefers Instructions] Sandler. Piper [Operator

Robert Siefers

the I of starting of just trajectory was mean thoughts from presumably fourth just the loans that dynamics other the X.XX% please. full you you of a see response, could And sort margin point disclosure about on the can so just grow the parts got given with curious which year. you'd the at XX priority, discuss those I than the always on a key if good deposits dynamics, the with of from gets your the detail sort this on funding moving maybe on a I the but us Derek, I the restructuring, hoping you horizon. pro given little core then funding benefit we've curious Slide quarter's lower discuss a more sort guess deposits in expect within forma, is X.XX%. to know clip

Derek Meyer

Yes. Thanks, Scott.

than stable for in that looking think the margin that, drive and asset bias the the down and I upside market sensitive that are So rates curve be to outlook we're continuing before. to of get this. a once exposes to cuts our sensitivity. right little cuts, of could includes rate X benefit But asset we're largely a us while outlook going being bit be to fewer assumption and seems profitability with are There improved we we in sensitive our now

that hedging. transaction lock we in X%, closer aside is expect what of and help the to benefits from us, So the to this

So the put time. the we have first back hedging for details in we

to And the the dropped lock which it continue and that and albeit stabilize stay go slower our up, the in the do we is that to at You'll going to first securities continue has sensitivity to then there reduce expect And and that a us that's help pace see then been. repositioning we forward time, implied down the for modestly longer. scenario, than the forwards. that scenario rate book auto in upside gives in asset out

we out had our end to dynamics, close predominantly growth gap the we by guidance think when the growth. a also. fund from funding From We with there gap deposit loan and the I that our of managed put year XXXX,

takes some to our and side build-out the that of in vertical, what do gap that we the want into put we new to I end support from guidance to still XXXX. start recognize towards closing and beyond accelerate may that, deposit the our think year

essentially gap result continuing FHLB Scott. of tried got your pay expect to wholesale to all and we've close, questions, position. capacity got that So I a from we've gap our we as funding that answer a X% funding down our to current

Robert Siefers

No, think I that's the Yes. you final was, I you perfect. C&I expect year. one And the about billion this $X.X talk could guess growth of maybe Andy,

discussed million I think to walk delta. compares through of that number maybe be previously. I drivers the correct, could I'm apples that comparing you of $XXX if had just to oranges. sort if But can favorable main you

Andrew Harmening

course. Yes, of

at So XXXX. I $XXX in what And is mean you're outlines in little about of pretty trend right think roughly X billion close. with growth XXXX a in million now. $X.X Page I we're bit the about

'XX you can our growth going largely from coming to X-plus in look commercial. X% at to X% from X% if in see So forecast plus, percent 'XX, you it's

trend see a that can emerging. also there's You

first of half the to stronger we are up. half back be as We expected ramping than 'XX

RMs. expect our has incredibly that spend high-quality the 'XX. concluded fourth not quarter hiring. a year have few the the we quarter. out built first announced in This number, hiring. to but to the intend And We something that don't announce gotten largely whole have But been we we close of We'll in only to we more

year, full the really of commercial more and a production. full then here in function So a really them doing on a in just ramped-up being the year, is increase average having

lot we what's XXXX. clearer So possible into in visibility a have

that. of just we extrapolated kind So

we've side, to about $X.X for as to billion about be would that we that on ABL the that, it. but to that It and in add started a business opportunity the that's continued ago, leasing well. X has outstandings, years continues us now an and I grow

commercial we pleased that into So had is XXXX. that and plan are in year-end, growth the that growth we've I'm ramp-up very in see right track, and on where why the we is with heading

Operator

Daniel Tamayo from Raymond is The James. next question from

Daniel Tamayo

credit I for guess, Pat on one first, here. just the side,

how we the You've that and in on the to far should that loan you're ratings how just doing I'm process and are just portfolio to deep migration that see talked to along on about work expect dive doing loans. you're related you impacting curious the continue some the that's that. if in the

Patrick Ahern

The doing of last been for deep for clarity, dives, we've years. a just on basis, couple and it constant doing we're the

really, what just early of any recognition is So you're seeing changes of kind credit. in

say ongoing at. an come course constantly of little quarter-to-quarter, and just that's there's with we're I outs process from So business. that a more that the to certainly would ins looking And normal trying be We're proactive on kind seeing we're But risk stress. rating doing there be if to it we're buildup the news is ahead good to the the of any how going in is any nonaccrual. not get of

think we they things we're of kind of as staying these up. ahead So do pop

Daniel Tamayo

Andy. one maybe then And Okay. for you,

fourth you'd changes quarter, the sheet some there the likely you does the sounds It But the in are major of lot With made interested in to through making that the of that kind do in commercial like side. here it you're on majority overall as structure, talked sheet be changes that changes are been future? think it's then these that over? the significant you've you've done? making changes it balance a major like that about and kind are the you the relates Or balance still changes the hirings feel of

Andrew Harmening

Well, it's a question. great

So is estate. largely what noncustomer now. be could residential We're of done real mix. other Will needed we've out opportunities? And we an I proving real We out would that there down estate shift take to what organically we concentration the could say that. grow that to saw we residential is We our opportunity prove inorganically have and is digital, invested in right opportunities at from we we an have customer don't have scale we ability planned now, because it's this organic it point. that base, a household always are in commercial look And deposit side, But to there growth the right We've its on anything the growing growth, growing different has at XXXX. business satisfaction. standpoint. have that we

now, there's for opportunistically, stable that's team on see have good could months, XX opportunity a move organic to really down side. and the in XXXX, But is if So next deal right the very that XX to execute a we I a what path.

Operator

question from is Terry from Our next Stephens. McEvoy

Terence McEvoy

for My you, is, balance the is you right income the Maybe we a that at sheet And talked confidence you've the into when statement? scores, direction. the question core all X% question moving Promoter look consumer in about? growth how the customer in growth deposit Net satisfaction where record-high that the and does give Score, does the that translate and

Andrew Harmening

question a I Yes, that hall, question I've somewhere. our want I wheelhouse. planted think that about the to on that's if we a I make lot at and talked think talked to a about because we've were a customer satisfaction, Terry, was that road growth, town right in household is

And customer grew break that at 'XX And base 'XX, XX%. down X%. In it we our we quality like increased of grew we X%. now matters and 'XX, at reason so we're in the In The 'XX, X%. forecasting between this, in X%. dollars account I'll 'XX, is shrunk because

the that we X%, growth, to every number about by million that additional So in balances. have for equates $XXX we now time grow

to $XXX now it we've a coming is this first productivity that decade. And a time tailwind over that year had from into goes $XXX to a the goes million. growth, million, tailwind the X% expectation So in and

at So we that. look

talented business, talk But is is no do. the that, of just sure them XX-plus scorecard expectations also what really balanced then in in we lot, full RMs we've deposit vertical And they just We there's hired year but add business. whole make that bring an we've technology a to HSA that accelerating we're getting they people, in our with a top they're a that started. incents everything that we into to are about done. doubt on to of a We've Then and add accelerator which on experts deposit-heavy it don't that's have effective. invested we relationships. That whatever going

So when balanced when growth I not we're with in the the faster add accounts, we than we add that invested that. when quality We've new we to do RMs just hoping household add strategies deposit scorecard, grow with HSA, increase and in marketplace. a vertical,

confidence where I the get coming. And so deposit I a where that's on see growth

Terence McEvoy

think we all I then play you're swear. as would 'XX. I Ben me positioned follow-up, agree didn't just to question, e-mail offense that in And a

year of now larger and markets. committing loan maybe this Some it's banks the to metro are of your more growth

about the had the C&I more what environment, especially year up where Scott in second half of how of as a the a be for guide think you success lot side, did brought in So your the you competitive expense on might year? what

Andrew Harmening

I'll number? or question. do X% we that that can the mean the what on translate to in Maybe on we have upside? Is Is it the expense pressure X% you stay

Terence McEvoy

loan and being more No, large I talking was on the competitive. banks growth

Andrew Harmening

the I see. Yes, on pricing side.

question the this this from Chief I've of actually experienced so books. have our that every that on you can whether we've been pressure in, the on been we on the increased or pricing verticals as And the week, in, Officer, who we're we're see, our that Head we've not And deals And be an amount putting with sees the Credit been deal, that markets the asking putting across Commercial. books.

and new knowledge we just managers primary quality haven't of on relationship We that deals, that's long-term relationships, pressure pricing the it created if immune, driver. that get so not this at but market seen would when point. be course, marketplace have on And you the

Operator

if the And to any Instructions] no further comments. floor questions, for management back [Operator to closing turn I'd like there are

Andrew Harmening

X the look will We in Bank along. heading the you. we been Well, as interest what to have say we've story, forward Thank in appreciate here. goes providing I've that closing updates as in years is Associated your as year much I momentum year the and had we the into

Operator

today's teleconference. This concludes

may time. for you disconnect at participation. You your again Thank this lines your

Associated Banc-Corp (ASB) 23 Jan 252024 Q4 Earnings call transcript