Associated Banc-Corp (Associated) reported diluted earnings per common share of $0.72 for 2024, a 36% decrease from $1.13 in 2023. This decline was primarily attributed to non-recurring items related to a fourth-quarter 2024 balance sheet repositioning and the issuance of 13.8 million common shares during the same period. Average loans for the year totaled $29.7 billion, a 1% increase year-over-year, driven by growth in auto finance and commercial and business lending, offset by a decrease in residential mortgages. Average deposits increased 7% to $33.4 billion, reflecting growth across several deposit categories.
Net interest income rose by 1% to $1.0 billion in 2024, despite a 3 basis point decrease in the net interest margin to 2.78%. The increase in net interest income resulted from growth in earning assets, while margin compression stemmed from a shift towards higher-cost funding sources. The provision for credit losses was $85 million in 2024, slightly higher than the $83 million reported in 2023. Noninterest income (loss) decreased significantly to $(9) million, primarily due to higher investment securities losses associated with the fourth-quarter balance sheet repositioning.
Noninterest expense increased by 1% to $818 million, primarily due to higher personnel expenses reflecting the company's growth strategy and losses on prepayments of FHLB advances related to the balance sheet repositioning. The company's effective tax rate decreased to 8.41% in 2024 from 11.21% in 2023, primarily due to a strategic investment portfolio reallocation and a legal entity rationalization plan. At year-end 2024, total assets reached $43.0 billion, a 5% increase from the previous year, driven by growth in AFS investment securities and loans, partially offset by a decrease in residential mortgages due to the portfolio sale.
Associated's total deposits increased by 4% to $34.6 billion, with notable growth in time deposits. The company's loan portfolio showed a 2% increase to $29.8 billion, primarily due to growth in commercial and business lending and auto finance, offset by a decrease in residential mortgages resulting from the balance sheet repositioning. The company's risk factors include credit risks, liquidity and interest rate risks, operational risks, strategic and external risks, and legal, compliance, and reputational risks. These risks are discussed in detail within the filing, along with the company's risk management strategies. The company's outlook is dependent on various economic and market factors, including interest rate movements and overall economic conditions. The company's 2021 $100 million share repurchase program had $61 million remaining as of December 31, 2024.
About ASSOCIATED BANC-CORP
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