Associated Banc-Corp (NYSE:ASB) Q3 2020 Earnings Conference Call - Final Transcript

Oct 22, 2020 • 05:00 pm ET


Associated Banc-Corp (NYSE:ASB) Q3 2020 Earnings Conference Call - Final Transcript


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Philip B. Flynn

million, including $60 million of restructuring costs previously mentioned. Core expenses continue to trend lower largely driven by the reduction of expense following the sale of ABRC. We expect the expense initiatives executed in Q3 to provide further savings as we move into 2021. And as you can see from the lower right chart, on an adjusted or run rate basis, our expenses to average assets ratio is already trending below 2%.

As shown on Slide 15, our regulatory capital levels remain strong. At the end of Q3, our regulatory capital levels were at or above where we ended the year for 2019 and our tangible common equity ratio increased 25 basis points to 7.5%. Tangible book value per share also increased to $16.37 per share, up from $16.21 in the prior quarter, reflecting the net additive benefit to shareholders of the actions we took during the quarter.

On Slide 16, we're updating select items for the remainder of 2020 and reiterating our expense guidance for 2021. We expect a net interest margin of 2.5% or slightly higher in the fourth quarter, we expect fee revenue to continue on a positive trend through the end of 2020. Expenses for Q4 are expected to come in at $175 million including about $3 million of remaining restructuring costs. We reiterate our full year 2021 expenses are expected to be approximately $685 million. The full year 2020 tax rate will be in the low to mid-single digits and we expect the full year '21 tax rate to be between 15% and 17%.

Thank you. With that, we'd be happy to answer your questions.