Associated Banc-p(ASB)2022-04-22 02:07Financial Data and Key Metrics Changes - The first-quarter earnings per share were 176 million, down 5 million, down about 83% from the fourth quarter [9] - The tangible book value per share increased to 1.2 billion or 5% compared to the first quarter of 2020 [10] - Mortgage banking income increased by 95 million, up over 11% from the fourth quarter [19] Market Data and Key Metrics Changes - Average deposits were up 200 million or more in 2021 [12][13] - The company aims to grow its indirect auto outstandings into a multibillion-dollar loan portfolio over time [13] - The management expressed optimism about loan growth in the latter part of the year, particularly in commercial real estate lending [11] Management Comments on Operating Environment and Future Outlook - Management noted a strengthening economy and improving credit dynamics across all portfolios [7] - The company expects full-year commercial loan growth of approximately 2% to 4%, excluding PPP loans [11] - Management anticipates that net interest margin will gradually expand over the course of the second through fourth quarters [16] Other Important Information - The company is revising its noninterest income guidance up by 310 million and 404 million, down from $431 million in the prior quarter [24] - The company is targeting Common Equity Tier 1 ratio at or above 9.5% [25] Q&A Session Summary Question: What is the outlook for fee improvement for the remainder of the year? - Management expects mortgage banking to remain strong and anticipates significant loan demand in the back half of the year, contributing to fee income [30] Question: What is the credit box for the new auto lending product? - The company will operate in the higher credit quality area, focusing on prime and near-prime customers [34] Question: What is holding back from larger buybacks? - There is no specific barrier; future buybacks will be reviewed by the new CEO, and capital deployment will be done thoughtfully [36] Question: What is the outlook for net interest income? - Management believes quarterly net interest income has bottomed and expects improvement as mortgage refinance dynamics abate [39] Question: What are the drivers behind the general commercial decline? - The decline is attributed to low line utilization, currently at about 32%, which is expected to increase as business activity picks up [49] Question: What is the expected impact of the infrastructure bill? - Customers in the heavy civil contracting space are eager to get started, indicating readiness for increased activity [68]