Associated Banc-p(US:ASB)2026-01-22 23:00Financial Data and Key Metrics Changes - The company reported earnings of $0.80 per share in Q4 and $2.77 per share for the full year, marking the strongest net income in its history [6][30] - Total loans grew by 1% quarter-over-quarter and 5% year-over-year, with C&I loans being a primary growth driver [6][7] - Net interest income (NII) reached a record $310 million in Q4, up 15% for the year, with a net interest margin (NIM) of over 3% for the year [8][10] Business Line Data and Key Metrics Changes - C&I loans grew by over $1.2 billion in 2025, with a 2% increase in Q4 alone [4][7] - Core customer deposits increased by nearly $700 million in Q4 and $1 billion for the year, reflecting a 3.5% growth rate year-over-year [8][19] - Non-interest income for Q4 was $79 million, down slightly from Q3 but up from the previous year, driven by growth in wealth management and card fees [24] Market Data and Key Metrics Changes - The company is expanding its presence in major metropolitan markets, including Omaha and the Twin Cities, where it aims to deepen market share [5][13] - The acquisition of American National Corporation is expected to enhance growth prospects in these markets [5][30] Company Strategy and Development Direction - The company completed major investments from its strategic plan in March 2025, positioning it for growth in 2026 and beyond [3][4] - Plans for 2026 include increasing marketing spend by over 100% in key markets to drive household growth [15] - The focus remains on high-quality commercial relationships and maintaining a low-risk profile while expanding [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth momentum and profitability, anticipating continued organic growth in 2026 [6][30] - The economic outlook includes expectations of two Fed rate cuts in 2026, which could impact net interest income positively [22][30] Other Important Information - The company has maintained a disciplined approach to credit, with low charge-offs and improving asset quality [9][29] - Capital ratios increased, with the tangible common equity ratio at 8.29% and the CET1 ratio at 10.49% [26] Q&A Session Summary Question: Non-interest income guidance excluding American National - Management indicated that they do not have updates on financial impacts from the acquisition yet, but they are optimistic about the strategic alignment of the franchises [31][32] Question: Investments in targeted cities for 2026 - Management confirmed that they expect to see a significant increase in marketing expenses in Omaha and Minneapolis, with hires for relationship managers already underway [34][36] Question: Loan and deposit growth expectations from new hires - Management expects that new hires will contribute to loan growth in 2026, with a forecast of $1.2 billion in C&I growth [37] Question: Capital considerations for buybacks - The primary focus remains on organic growth and executing the acquisition, with capital decisions to be made based on future profitability [49] Question: Credit metrics and portfolio concerns - Management reported no significant stress in the portfolio, with positive signs in commercial real estate paydowns [51]