Exhibit 99.1
|
| |
| NEWS RELEASE Investor Contact: Teresa Gutierrez, Senior Vice President, Director of Investor Relations 920-491-7059 Media Contact: Jennifer Kaminski, Vice President, Manager of Public Relations 920-491-7576 |
Associated Banc-Corp Reports Second Quarter Earnings of $0.31 per share
Revenue increases on record organic loan growth
GREEN BAY, Wis. -- July 21, 2016 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $47 million, or $0.31 per common share, for the quarter ended June 30, 2016. This compares to net income available to common equity of $40 million, or $0.27 per common share, for the quarter ended March 31, 2016.
“This quarter’s results demonstrated our ability to grow in a challenging environment. We benefit from a mix of diverse businesses and are encouraged by the consistent demand across our product offerings.
We delivered record loan growth, and together with a stable margin, saw a significant increase in net interest income. We are also pleased to report stronger fee-based revenue which highlights the resiliency of our fee product offerings,” said President and CEO Philip B. Flynn. “We held expenses in line with prior quarters and we are on target to deliver improved efficiency for the fifth straight year. Outside of energy, our credit quality metrics remain sound and net charge offs were at cyclical lows. Our customers look to Associated as a partner for growth as we continue to enhance our capabilities while delivering value to our shareholders.”
SECOND QUARTER SUMMARY
| |
| • | Average loans of $19.6 billion grew $719 million, or 4% from the first quarter |
| |
| • | Total commercial lending accounted for 75% of average loan growth |
| |
| • | Average deposits of $20.3 billion declined $286 million, or 1% from the first quarter |
| |
| • | Net interest income of $177 million, up $5 million, or 3% from the first quarter |
| |
| • | Net interest margin of 2.81% was stable from the first quarter |
| |
| • | Provision for credit losses of $14 million, down $6 million from the first quarter |
| |
| • | Noninterest income of $82 million, down $1 million from the prior quarter |
| |
| • | Fee-based revenue of $67 million, up $2 million from the first quarter |
| |
| • | Noninterest expense of $174 million was flat from the first quarter |
| |
| • | Return on average common equity Tier 1 (CET1) was 9.9% |
| |
| • | Total dividends per common share of $0.11 in the quarter, up 10% from the year ago quarter |
| |
| • | Capital ratios remain strong with a CET1 ratio of 9.2% at quarter end |
SECOND QUARTER RESULTS
Loans
Second quarter average loans of $19.6 billion increased $719 million from the first quarter, and have increased $1.5 billion from the year ago quarter.
With respect to second quarter average balances,
| |
| • | Commercial and business lending grew $354 million from the first quarter to $7.5 billion, with growth driven by general commercial lending, mortgage warehouse, and power and utilities. Commercial and business lending increased $307 million, or 4%, from the year ago quarter. |
| |
| • | Commercial real estate lending grew $185 million from the first quarter to $4.7 billion. Commercial real estate lending has increased $505 million, or 12%, from the year ago quarter. |
| |
| • | Consumer lending grew $181 million from the first quarter to $7.5 billion, and increased $641 million, or 9%, from the year ago quarter. |
Deposits
Second quarter average deposits of $20.3 billion decreased $286 million from the first quarter, and have increased $663 million from the year ago quarter.
With respect to second quarter average balances,
| |
| • | Noninterest-bearing demand deposits decreased modestly from the first quarter to $5.0 billion, and have grown $679 million, or 16%, from the year ago quarter. |
| |
| • | Interest-bearing demand deposits increased $420 million from the first quarter to $3.6 billion, and grew $390 million, or 12%, from the year ago quarter. |
| |
| • | Savings deposits increased $77 million from the first quarter to $1.4 billion, and have grown $92 million, or 7%, from the year ago quarter. |
| |
| • | Money market deposits declined $739 million from the first quarter to $8.7 billion, and have declined $409 million, or 4%, from the year ago quarter. |
| |
| • | Time deposits declined slightly from the first quarter to $1.5 billion, and have decreased $90 million, or 6%, from the year ago quarter. |
Net Interest Income and Net Interest Margin
Second quarter net interest income of $177 million was up $5 million, or 3% from the first quarter and up $10 million, or 6% from the year ago quarter. Second quarter net interest margin of 2.81% was flat from the prior quarter and 2 basis points lower than the year ago quarter.
| |
| • | Interest and fees on loans increased $3 million, or 2%, from the first quarter. This increase was partially offset by $1 million in lower interest income from investment securities. |
| |
| • | Interest expense on deposits declined modestly from the first quarter, partially attributable to lower rates paid on interest-bearing demand, savings, and time deposit balances. |
| |
| • | Interest on long-term funding decreased $3 million from the first quarter, driven by the retirement of $430 million of the Company’s senior notes in February 2016. |
Noninterest Income
Second quarter total noninterest income of $82 million was down $1 million, or 1% from the first quarter and down $4 million, or 5% from the year ago quarter.
| |
| • | Fee-based revenue increased $2 million from the first quarter, due to increases across all categories including trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions. |
| |
| • | Mortgage banking income decreased modestly from the first quarter. While gain on sales benefitted from higher volumes of mortgage loans originated for sale during the period, these were offset by adverse fair value marks on the Company’s pipeline and the mortgage servicing rights valuation; reflecting lower rates at quarter end. |
| |
| • | All remaining noninterest income categories, on a combined basis, were down $3 million from the prior quarter primarily related to lower bank owned life insurance income and lower asset gains in the second quarter. |
Noninterest Expense
Second quarter total noninterest expense of $174 million was flat from the first quarter, and down $2 million, or 1% from the year ago quarter.
| |
| • | Lower business development and advertising, occupancy, foreclosure and OREO expense, and legal and professional fees contributed to a $3 million reduction in expenses from the first quarter. |
| |
| • | These savings were partially offset by $3 million in higher FDIC, personnel, and other expenses. |
Taxes
Second quarter income taxes were $21 million with an effective tax rate of 30%, compared to $19 million and 31% in the first quarter, and $22 million and 31% in the year ago quarter.
Credit
The provision for credit losses was $14 million in the second quarter, down $6 million from the prior quarter, primarily attributed to a change in estimate resulting from further segmentation of mortgage warehouse loans within our specialized lending business.
| |
| • | Nonaccrual loans of $283 million were down $4 million from the first quarter. The nonaccrual loans to total loans ratio was 1.43% in the second quarter and was down from 1.49% in the prior quarter. |
| |
| • | Net charge offs of $21 million were up $4 million from the first quarter. Net charge offs in the second quarter were primarily attributable to oil and gas related charge offs of $19 million. |
| |
| • | Potential problem loans of $457 million were up $56 million from the first quarter, related to risk rating migration in the general commercial and oil and gas portfolios. |
| |
| • | The allowance for loan losses of $268 million was down $10 million from the first quarter. The allowance for loan losses to total loans was 1.35% in the second quarter, compared to 1.44% in the first quarter. |
| |
| • | The allowance related to the oil and gas portfolio was $42 million, down $7 million from March 31, 2016, and was flat to December 31, 2015. The allowance on this portfolio reflects year to date net charge offs of $32 million. The allowance represented 5.6% of total oil and gas loans at June 30, 2016, flat to 5.6% at December 31, 2015. |
| |
| • | The allowance for unfunded commitments of $27 million increased $3 million from the first quarter, driven by risk rating migration and new volumes. |
Capital
The Company’s capital position remains strong, with a common equity Tier 1 ratio of 9.2% at June 30, 2016. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
SECOND QUARTER 2016 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 21, 2016. Interested parties can listen to the call live on the internet through the investor relations section of the Company's website, http://investor.associatedbank.com or by dialing 877-407-8037. The second quarter 2016 financial tables and an accompanying slide presentation for the call will be available on the Company's website just prior to the call. The number for international callers is 201-689-8037. Participants should ask the operator for the Associated Banc-Corp second quarter 2016 earnings call. An audio archive of the webcast will be available on the Company’s website approximately fifteen minutes after the call is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $29 billion and is one of the top 50 publicly traded U.S. bank holding companies. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release contains references to measures which are not defined in generally accepted accounting principles (“GAAP”). Information concerning these non-GAAP financial measures can be found in the financial tables.
# # #
|
| | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Consolidated Balance Sheets (Unaudited) | | | | | | |
| (in thousands) | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr
$ Change | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr $ Change |
| Assets | | | | | | | | |
| Cash and due from banks | | $ | 333,000 |
| $ | 287,183 |
| $ | 45,817 |
| $ | 374,921 |
| $ | 303,701 |
| $ | 375,369 |
| $ | (42,369 | ) |
| Interest-bearing deposits in other financial institutions | | 131,680 |
| 68,025 |
| 63,655 |
| 79,764 |
| 70,023 |
| 101,573 |
| 30,107 |
|
| Federal funds sold and securities purchased under agreements to resell | | 13,200 |
| 20,200 |
| (7,000 | ) | 19,000 |
| 36,490 |
| 39,850 |
| (26,650 | ) |
| Investment securities held to maturity, at amortized cost | | 1,236,140 |
| 1,176,821 |
| 59,319 |
| 1,168,230 |
| 604,799 |
| 532,382 |
| 703,758 |
|
| Investment securities available for sale, at fair value | | 4,801,766 |
| 4,905,841 |
| (104,075 | ) | 4,967,414 |
| 5,403,656 |
| 5,407,998 |
| (606,232 | ) |
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | | 194,501 |
| 181,853 |
| 12,648 |
| 147,240 |
| 160,871 |
| 160,765 |
| 33,736 |
|
| Loans held for sale | | 284,376 |
| 128,339 |
| 156,037 |
| 124,915 |
| 105,144 |
| 151,146 |
| 133,230 |
|
| Loans | | 19,815,286 |
| 19,227,240 |
| 588,046 |
| 18,714,343 |
| 18,524,773 |
| 18,303,252 |
| 1,512,034 |
|
| Allowance for loan losses | | (267,780 | ) | (277,370 | ) | 9,590 |
| (274,264 | ) | (262,536 | ) | (261,538 | ) | (6,242 | ) |
| Loans, net | | 19,547,506 |
| 18,949,870 |
| 597,636 |
| 18,440,079 |
| 18,262,237 |
| 18,041,714 |
| 1,505,792 |
|
| Premises and equipment, net | | 331,427 |
| 331,711 |
| (284 | ) | 267,606 |
| 271,119 |
| 274,338 |
| 57,089 |
|
| Goodwill | | 971,951 |
| 971,951 |
| — |
| 968,844 |
| 968,844 |
| 968,844 |
| 3,107 |
|
| Mortgage servicing rights, net | | 57,474 |
| 59,414 |
| (1,940 | ) | 61,341 |
| 61,402 |
| 61,192 |
| (3,718 | ) |
| Other intangible assets, net | | 16,427 |
| 16,966 |
| (539 | ) | 16,458 |
| 16,978 |
| 17,863 |
| (1,436 | ) |
| Trading assets | | 77,112 |
| 53,087 |
| 24,025 |
| 32,192 |
| 43,752 |
| 35,386 |
| 41,726 |
|
| Other assets | | 1,042,139 |
| 1,027,606 |
| 14,533 |
| 1,043,831 |
| 1,154,750 |
| 1,012,957 |
| 29,182 |
|
| Total assets | | $ | 29,038,699 |
| $ | 28,178,867 |
| $ | 859,832 |
| $ | 27,711,835 |
| $ | 27,463,766 |
| $ | 27,181,377 |
| $ | 1,857,322 |
|
| Liabilities and Stockholders’ Equity | | | | | | | | |
| Noninterest-bearing demand deposits | | $ | 5,039,336 |
| $ | 5,272,685 |
| $ | (233,349 | ) | $ | 5,562,466 |
| $ | 4,657,261 |
| $ | 4,332,171 |
| $ | 707,165 |
|
| Interest-bearing deposits | | 15,253,514 |
| 15,412,775 |
| (159,261 | ) | 15,445,199 |
| 15,901,134 |
| 14,937,392 |
| 316,122 |
|
| Total deposits | | 20,292,850 |
| 20,685,460 |
| (392,610 | ) | 21,007,665 |
| 20,558,395 |
| 19,269,563 |
| 1,023,287 |
|
| Federal funds purchased and securities sold under agreements to repurchase | | 509,150 |
| 583,247 |
| (74,097 | ) | 431,438 |
| 702,569 |
| 689,699 |
| (180,549 | ) |
| Other short-term funding | | 1,402,407 |
| 834,161 |
| 568,246 |
| 402,978 |
| 319,766 |
| 905,837 |
| 496,570 |
|
| Long-term funding | | 3,511,475 |
| 2,861,316 |
| 650,159 |
| 2,676,164 |
| 2,676,065 |
| 3,175,966 |
| 335,509 |
|
| Trading liabilities | | 79,466 |
| 55,223 |
| 24,243 |
| 33,430 |
| 45,817 |
| 37,169 |
| 42,297 |
|
| Accrued expenses and other liabilities | | 213,204 |
| 176,962 |
| 36,242 |
| 222,914 |
| 207,357 |
| 198,752 |
| 14,452 |
|
| Total liabilities | | 26,008,552 |
| 25,196,369 |
| 812,183 |
| 24,774,589 |
| 24,509,969 |
| 24,276,986 |
| 1,731,566 |
|
| Stockholders’ Equity | | | | | | | | |
| Preferred equity | | 120,201 |
| 120,347 |
| (146 | ) | 121,379 |
| 121,379 |
| 122,015 |
| (1,814 | ) |
| Common equity | | | | | | | | |
| Common stock | | 1,630 |
| 1,630 |
| — |
| 1,642 |
| 1,642 |
| 1,642 |
| (12 | ) |
| Surplus | | 1,453,285 |
| 1,447,368 |
| 5,917 |
| 1,458,522 |
| 1,455,034 |
| 1,450,200 |
| 3,085 |
|
| Retained earnings | | 1,629,915 |
| 1,599,835 |
| 30,080 |
| 1,593,239 |
| 1,570,199 |
| 1,538,684 |
| 91,231 |
|
| Accumulated other comprehensive income (loss) | | 13,453 |
| 2,167 |
| 11,286 |
| (32,616 | ) | 15,376 |
| 2,594 |
| 10,859 |
|
| Treasury stock | | (188,337 | ) | (188,849 | ) | 512 |
| (204,920 | ) | (209,833 | ) | (210,744 | ) | 22,407 |
|
| Total common equity | | 2,909,946 |
| 2,862,151 |
| 47,795 |
| 2,815,867 |
| 2,832,418 |
| 2,782,376 |
| 127,570 |
|
| Total stockholders’ equity | | 3,030,147 |
| 2,982,498 |
| 47,649 |
| 2,937,246 |
| 2,953,797 |
| 2,904,391 |
| 125,756 |
|
| Total liabilities and stockholders’ equity | | $ | 29,038,699 |
| $ | 28,178,867 |
| $ | 859,832 |
| $ | 27,711,835 |
| $ | 27,463,766 |
| $ | 27,181,377 |
| $ | 1,857,322 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Consolidated Statements of Income (Unaudited) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | Comp Qtr | | YTD | | YTD | | Comp YTD |
| (in thousands, except per share amounts) | | 2Q16 | | 2Q15 | | $ Change | | % Change | | Jun 2016 | | Jun 2015 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 163,059 |
| | $ | 152,417 |
| | $ | 10,642 |
| | 7 | % | | $ | 322,715 |
| | $ | 304,362 |
| | $ | 18,353 |
| | 6 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | |
| Taxable | | 24,270 |
| | 23,868 |
| | 402 |
| | 2 | % | | 49,786 |
| | 48,960 |
| | 826 |
| | 2 | % |
| Tax-exempt | | 7,894 |
| | 7,565 |
| | 329 |
| | 4 | % | | 15,724 |
| | 15,452 |
| | 272 |
| | 2 | % |
| Other interest | | 1,318 |
| | 1,771 |
| | (453 | ) | | (26 | )% | | 2,385 |
| | 3,463 |
| | (1,078 | ) | | (31 | )% |
| Total interest income | | 196,541 |
| | 185,621 |
| | 10,920 |
| | 6 | % | | 390,610 |
| | 372,237 |
| | 18,373 |
| | 5 | % |
| Interest Expense | | | | | | | | | | | | | | | | |
| Interest on deposits | | 11,678 |
| | 8,141 |
| | 3,537 |
| | 43 | % | | 23,444 |
| | 15,760 |
| | 7,684 |
| | 49 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 378 |
| | 235 |
| | 143 |
| | 61 | % | | 674 |
| | 466 |
| | 208 |
| | 45 | % |
| Interest on other short-term funding | | 845 |
| | 115 |
| | 730 |
| | 635 | % | | 1,360 |
| | 196 |
| | 1,164 |
| | 594 | % |
| Interest on long-term funding | | 6,923 |
| | 10,642 |
| | (3,719 | ) | | (35 | )% | | 16,428 |
| | 21,514 |
| | (5,086 | ) | | (24 | )% |
| Total interest expense | | 19,824 |
| | 19,133 |
| | 691 |
| | 4 | % | | 41,906 |
| | 37,936 |
| | 3,970 |
| | 10 | % |
| Net Interest Income | | 176,717 |
| | 166,488 |
| | 10,229 |
| | 6 | % | | 348,704 |
| | 334,301 |
| | 14,403 |
| | 4 | % |
| Provision for credit losses | | 14,000 |
| | 5,000 |
| | 9,000 |
| | 180 | % | | 34,000 |
| | 9,500 |
| | 24,500 |
| | 258 | % |
| Net interest income after provision for credit losses | | 162,717 |
| | 161,488 |
| | 1,229 |
| | 1 | % | | 314,704 |
| | 324,801 |
| | (10,097 | ) | | (3 | )% |
| Noninterest Income | | | | | | | | | | | | | | | | |
| Trust service fees | | 11,509 |
| | 12,515 |
| | (1,006 | ) | | (8 | )% | | 22,956 |
| | 24,602 |
| | (1,646 | ) | | (7 | )% |
| Service charges on deposit accounts | | 16,444 |
| | 15,703 |
| | 741 |
| | 5 | % | | 32,717 |
| | 31,509 |
| | 1,208 |
| | 4 | % |
| Card-based and other nondeposit fees | | 12,717 |
| | 13,597 |
| | (880 | ) | | (6 | )% | | 24,708 |
| | 26,013 |
| | (1,305 | ) | | (5 | )% |
| Insurance commissions | | 22,005 |
| | 20,077 |
| | 1,928 |
| | 10 | % | | 43,387 |
| | 39,805 |
| | 3,582 |
| | 9 | % |
| Brokerage and annuity commissions | | 4,098 |
| | 4,192 |
| | (94 | ) | | (2 | )% | | 7,892 |
| | 7,875 |
| | 17 |
| | — | % |
| Mortgage banking, net | | 4,067 |
| | 9,941 |
| | (5,874 | ) | | (59 | )% | | 8,271 |
| | 17,349 |
| | (9,078 | ) | | (52 | )% |
| Capital market fees, net | | 3,793 |
| | 2,692 |
| | 1,101 |
| | 41 | % | | 7,331 |
| | 5,159 |
| | 2,172 |
| | 42 | % |
| Bank owned life insurance income | | 2,973 |
| | 2,381 |
| | 592 |
| | 25 | % | | 7,743 |
| | 5,256 |
| | 2,487 |
| | 47 | % |
| Asset gains (losses), net | | (343 | ) | | 1,854 |
| | (2,197 | ) | | (119 | )% | | 181 |
| | 2,687 |
| | (2,506 | ) | | (93 | )% |
| Investment securities gains, net | | 3,116 |
| | 1,242 |
| | 1,874 |
| | 151 | % | | 6,214 |
| | 1,242 |
| | 4,972 |
| | 400 | % |
| Other | | 1,789 |
| | 2,288 |
| | (499 | ) | | (22 | )% | | 3,960 |
| | 4,798 |
| | (838 | ) | | (17 | )% |
| Total noninterest income | | 82,168 |
| | 86,482 |
| | (4,314 | ) | | (5 | )% | | 165,360 |
| | 166,295 |
| | (935 | ) | | (1 | )% |
| Noninterest Expense | | | | | | | | | | | | | | | | |
| Personnel expense | | 102,129 |
| | 102,986 |
| | (857 | ) | | (1 | )% | | 203,527 |
| | 203,138 |
| | 389 |
| | — | % |
| Occupancy | | 13,215 |
| | 14,308 |
| | (1,093 | ) | | (8 | )% | | 27,017 |
| | 31,991 |
| | (4,974 | ) | | (16 | )% |
| Equipment | | 5,396 |
| | 5,739 |
| | (343 | ) | | (6 | )% | | 10,842 |
| | 11,511 |
| | (669 | ) | | (6 | )% |
| Technology | | 14,450 |
| | 16,354 |
| | (1,904 | ) | | (12 | )% | | 28,714 |
| | 31,912 |
| | (3,198 | ) | | (10 | )% |
| Business development and advertising | | 6,591 |
| | 6,829 |
| | (238 | ) | | (3 | )% | | 14,802 |
| | 12,156 |
| | 2,646 |
| | 22 | % |
| Other intangible amortization | | 539 |
| | 888 |
| | (349 | ) | | (39 | )% | | 1,043 |
| | 1,689 |
| | (646 | ) | | (38 | )% |
| Loan expense | | 3,442 |
| | 3,681 |
| | (239 | ) | | (6 | )% | | 6,663 |
| | 6,677 |
| | (14 | ) | | — | % |
| Legal and professional fees | | 4,856 |
| | 4,344 |
| | 512 |
| | 12 | % | | 9,881 |
| | 8,882 |
| | 999 |
| | 11 | % |
| Foreclosure / OREO expense, net | | 1,330 |
| | 1,264 |
| | 66 |
| | 5 | % | | 3,207 |
| | 2,426 |
| | 781 |
| | 32 | % |
| FDIC expense | | 8,750 |
| | 6,000 |
| | 2,750 |
| | 46 | % | | 16,500 |
| | 12,500 |
| | 4,000 |
| | 32 | % |
| Other | | 13,662 |
| | 14,384 |
| | (722 | ) | | (5 | )% | | 26,135 |
| | 27,887 |
| | (1,752 | ) | | (6 | )% |
| Total noninterest expense | | 174,360 |
| | 176,777 |
| | (2,417 | ) | | (1 | )% | | 348,331 |
| | 350,769 |
| | (2,438 | ) | | (1 | )% |
| Income before income taxes | | 70,525 |
| | 71,193 |
| | (668 | ) | | (1 | )% | | 131,733 |
| | 140,327 |
| | (8,594 | ) | | (6 | )% |
| Income tax expense | | 21,434 |
| | 21,793 |
| | (359 | ) | | (2 | )% | | 40,108 |
| | 44,255 |
| | (4,147 | ) | | (9 | )% |
| Net income | | 49,091 |
| | 49,400 |
| | (309 | ) | | (1 | )% | | 91,625 |
| | 96,072 |
| | (4,447 | ) | | (5 | )% |
| Preferred stock dividends | | 2,169 |
| | 1,545 |
| | 624 |
| | 40 | % | | 4,367 |
| | 2,773 |
| | 1,594 |
| | 57 | % |
| Net income available to common equity | | $ | 46,922 |
| | $ | 47,855 |
| | $ | (933 | ) | | (2 | )% | | $ | 87,258 |
| | $ | 93,299 |
| | $ | (6,041 | ) | | (6 | )% |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.31 |
| | $ | 0.32 |
| | $ | (0.01 | ) | | (3 | )% | | $ | 0.58 |
| | $ | 0.62 |
| | $ | (0.04 | ) | | (6 | )% |
| Diluted | | $ | 0.31 |
| | $ | 0.31 |
| | $ | — |
| | — | % | | $ | 0.58 |
| | $ | 0.61 |
| | $ | (0.03 | ) | | (5 | )% |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | |
| Basic | | 148,511 |
| | 149,903 |
| | (1,392 | ) | | (1 | )% | | 148,556 |
| | 149,986 |
| | (1,430 | ) | | (1 | )% |
| Diluted | | 149,530 |
| | 151,108 |
| | (1,578 | ) | | (1 | )% | | 149,518 |
| | 151,129 |
| | (1,611 | ) | | (1 | )% |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Consolidated Statements of Income (Unaudited)—Quarterly Trend |
| | | | | | | Seql Qtr | | | | | | | | Comp Qtr |
| (in thousands, except per share amounts) | | 2Q16 | | 1Q16 | | $ Change | | % Change | | 4Q15 | | 3Q15 | | 2Q15 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 163,059 |
| | $ | 159,656 |
| | $ | 3,403 |
| | 2 | % | | $ | 155,602 |
| | $ | 155,663 |
| | $ | 152,417 |
| | $ | 10,642 |
| | 7 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | | | |
| Taxable | | 24,270 |
| | 25,516 |
| | (1,246 | ) | | (5 | )% | | 26,395 |
| | 24,937 |
| | 23,868 |
| | 402 |
| | 2 | % |
| Tax-exempt | | 7,894 |
| | 7,830 |
| | 64 |
| | 1 | % | | 7,783 |
| | 7,917 |
| | 7,565 |
| | 329 |
| | 4 | % |
| Other interest | | 1,318 |
| | 1,067 |
| | 251 |
| | 24 | % | | 1,639 |
| | 1,489 |
| | 1,771 |
| | (453 | ) | | (26 | )% |
| Total interest income | | 196,541 |
| | 194,069 |
| | 2,472 |
| | 1 | % | | 191,419 |
| | 190,006 |
| | 185,621 |
| | 10,920 |
| | 6 | % |
| Interest Expense | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | 11,678 |
| | 11,766 |
| | (88 | ) | | (1 | )% | | 8,844 |
| | 8,521 |
| | 8,141 |
| | 3,537 |
| | 43 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 378 |
| | 296 |
| | 82 |
| | 28 | % | | 229 |
| | 248 |
| | 235 |
| | 143 |
| | 61 | % |
| Interest on other short-term funding | | 845 |
| | 515 |
| | 330 |
| | 64 | % | | 186 |
| | 83 |
| | 115 |
| | 730 |
| | 635 | % |
| Interest on long-term funding | | 6,923 |
| | 9,505 |
| | (2,582 | ) | | (27 | )% | | 10,692 |
| | 10,645 |
| | 10,642 |
| | (3,719 | ) | | (35 | )% |
| Total interest expense | | 19,824 |
| | 22,082 |
| | (2,258 | ) | | (10 | )% | | 19,951 |
| | 19,497 |
| | 19,133 |
| | 691 |
| | 4 | % |
| Net Interest Income | | 176,717 |
| | 171,987 |
| | 4,730 |
| | 3 | % | | 171,468 |
| | 170,509 |
| | 166,488 |
| | 10,229 |
| | 6 | % |
| Provision for credit losses | | 14,000 |
| | 20,000 |
| | (6,000 | ) | | (30 | )% | | 20,000 |
| | 8,000 |
| | 5,000 |
| | 9,000 |
| | 180 | % |
| Net interest income after provision for credit losses | | 162,717 |
| | 151,987 |
| | 10,730 |
| | 7 | % | | 151,468 |
| | 162,509 |
| | 161,488 |
| | 1,229 |
| | 1 | % |
| Noninterest Income | | | | | | | | | | | | | | | | | | |
| Trust service fees | | 11,509 |
| | 11,447 |
| | 62 |
| | 1 | % | | 11,965 |
| | 12,273 |
| | 12,515 |
| | (1,006 | ) | | (8 | )% |
| Service charges on deposit accounts | | 16,444 |
| | 16,273 |
| | 171 |
| | 1 | % | | 16,577 |
| | 17,385 |
| | 15,703 |
| | 741 |
| | 5 | % |
| Card-based and other nondeposit fees | | 12,717 |
| | 11,991 |
| | 726 |
| | 6 | % | | 12,694 |
| | 12,618 |
| | 13,597 |
| | (880 | ) | | (6 | )% |
| Insurance commissions | | 22,005 |
| | 21,382 |
| | 623 |
| | 3 | % | | 17,997 |
| | 17,561 |
| | 20,077 |
| | 1,928 |
| | 10 | % |
| Brokerage and annuity commissions | | 4,098 |
| | 3,794 |
| | 304 |
| | 8 | % | | 3,694 |
| | 3,809 |
| | 4,192 |
| | (94 | ) | | (2 | )% |
| Mortgage banking, net | | 4,067 |
| | 4,204 |
| | (137 | ) | | (3 | )% | | 8,271 |
| | 6,643 |
| | 9,941 |
| | (5,874 | ) | | (59 | )% |
| Capital market fees, net | | 3,793 |
| | 3,538 |
| | 255 |
| | 7 | % | | 3,423 |
| | 2,170 |
| | 2,692 |
| | 1,101 |
| | 41 | % |
| Bank owned life insurance income | | 2,973 |
| | 4,770 |
| | (1,797 | ) | | (38 | )% | | 2,092 |
| | 2,448 |
| | 2,381 |
| | 592 |
| | 25 | % |
| Asset gains (losses), net | | (343 | ) | | 524 |
| | (867 | ) | | (165 | )% | | (391 | ) | | 244 |
| | 1,854 |
| | (2,197 | ) | | (119 | )% |
| Investment securities gains, net | | 3,116 |
| | 3,098 |
| | 18 |
| | 1 | % | | 4,095 |
| | 2,796 |
| | 1,242 |
| | 1,874 |
| | 151 | % |
| Other | | 1,789 |
| | 2,171 |
| | (382 | ) | | (18 | )% | | 2,580 |
| | 2,118 |
| | 2,288 |
| | (499 | ) | | (22 | )% |
| Total noninterest income | | 82,168 |
| | 83,192 |
| | (1,024 | ) | | (1 | )% | | 82,997 |
| | 80,065 |
| | 86,482 |
| | (4,314 | ) | | (5 | )% |
| Noninterest Expense | | | | | | | | | | | | | | | | | | |
| Personnel expense | | 102,129 |
| | 101,398 |
| | 731 |
| | 1 | % | | 100,469 |
| | 101,134 |
| | 102,986 |
| | (857 | ) | | (1 | )% |
| Occupancy | | 13,215 |
| | 13,802 |
| | (587 | ) | | (4 | )% | | 14,718 |
| | 14,187 |
| | 14,308 |
| | (1,093 | ) | | (8 | )% |
| Equipment | | 5,396 |
| | 5,446 |
| | (50 | ) | | (1 | )% | | 5,695 |
| | 6,003 |
| | 5,739 |
| | (343 | ) | | (6 | )% |
| Technology | | 14,450 |
| | 14,264 |
| | 186 |
| | 1 | % | | 13,953 |
| | 14,748 |
| | 16,354 |
| | (1,904 | ) | | (12 | )% |
| Business development and advertising | | 6,591 |
| | 8,211 |
| | (1,620 | ) | | (20 | )% | | 7,652 |
| | 5,964 |
| | 6,829 |
| | (238 | ) | | (3 | )% |
| Other intangible amortization | | 539 |
| | 504 |
| | 35 |
| | 7 | % | | 520 |
| | 885 |
| | 888 |
| | (349 | ) | | (39 | )% |
| Loan expense | | 3,442 |
| | 3,221 |
| | 221 |
| | 7 | % | | 4,120 |
| | 3,305 |
| | 3,681 |
| | (239 | ) | | (6 | )% |
| Legal and professional fees | | 4,856 |
| | 5,025 |
| | (169 | ) | | (3 | )% | | 3,963 |
| | 4,207 |
| | 4,344 |
| | 512 |
| | 12 | % |
| Foreclosure / OREO expense, net | | 1,330 |
| | 1,877 |
| | (547 | ) | | (29 | )% | | 2,371 |
| | 645 |
| | 1,264 |
| | 66 |
| | 5 | % |
| FDIC expense | | 8,750 |
| | 7,750 |
| | 1,000 |
| | 13 | % | | 7,500 |
| | 6,000 |
| | 6,000 |
| | 2,750 |
| | 46 | % |
| Other | | 13,662 |
| | 12,473 |
| | 1,189 |
| | 10 | % | | 15,032 |
| | 14,507 |
| | 14,384 |
| | (722 | ) | | (5 | )% |
| Total noninterest expense | | 174,360 |
| | 173,971 |
| | 389 |
| | — | % | | 175,993 |
| | 171,585 |
| | 176,777 |
| | (2,417 | ) | | (1 | )% |
| Income before income taxes | | 70,525 |
| | 61,208 |
| | 9,317 |
| | 15 | % | | 58,472 |
| | 70,989 |
| | 71,193 |
| | (668 | ) | | (1 | )% |
| Income tax expense | | 21,434 |
| | 18,674 |
| | 2,760 |
| | 15 | % | | 15,681 |
| | 21,551 |
| | 21,793 |
| | (359 | ) | | (2 | )% |
| Net income | | 49,091 |
| | 42,534 |
| | 6,557 |
| | 15 | % | | 42,791 |
| | 49,438 |
| | 49,400 |
| | (309 | ) | | (1 | )% |
| Preferred stock dividends | | 2,169 |
| | 2,198 |
| | (29 | ) | | (1 | )% | | 2,198 |
| | 2,184 |
| | 1,545 |
| | 624 |
| | 40 | % |
| Net income available to common equity | | $ | 46,922 |
| | $ | 40,336 |
| | $ | 6,586 |
| | 16 | % | | $ | 40,593 |
| | $ | 47,254 |
| | $ | 47,855 |
| | $ | (933 | ) | | (2 | )% |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.31 |
| | $ | 0.27 |
| | $ | 0.04 |
| | 15 | % | | $ | 0.27 |
| | $ | 0.31 |
| | $ | 0.32 |
| | $ | (0.01 | ) | | (3 | )% |
| Diluted | | $ | 0.31 |
| | $ | 0.27 |
| | $ | 0.04 |
| | 15 | % | | $ | 0.27 |
| | $ | 0.31 |
| | $ | 0.31 |
| | $ | — |
| | — | % |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | | | |
| Basic | | 148,511 |
| | 148,601 |
| | (90 | ) | | — | % | | 148,834 |
| | 148,614 |
| | 149,903 |
| | (1,392 | ) | | (1 | )% |
| Diluted | | 149,530 |
| | 149,454 |
| | 76 |
| | — | % | | 150,163 |
| | 149,799 |
| | 151,108 |
| | (1,578 | ) | | (1 | )% |
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Quarterly Information | | | | | | | | |
| ($ in millions, except share and per share, full time equivalent employee data and branch count) | | YTD
Jun 2016 | YTD
Jun 2015 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 |
| Per Common Share Data | | | | | | | | |
| Dividends | | $ | 0.22 |
| $ | 0.20 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.10 |
| $ | 0.10 |
|
| Market value: | | | | | | | | |
| High | | 18.84 |
| 20.84 |
| 18.84 |
| 18.79 |
| 20.61 |
| 20.55 |
| 20.84 |
|
| Low | | 15.48 |
| 16.62 |
| 15.84 |
| 15.48 |
| 17.98 |
| 17.17 |
| 18.50 |
|
| Close | | 17.15 |
| 20.27 |
| 17.15 |
| 17.94 |
| 18.75 |
| 17.97 |
| 20.27 |
|
| Book value | | 19.27 |
| 18.44 |
| 19.27 |
| 18.96 |
| 18.62 |
| 18.77 |
| 18.44 |
|
| Tangible book value / share | | $ | 12.72 |
| $ | 11.90 |
| $ | 12.72 |
| $ | 12.41 |
| $ | 12.10 |
| $ | 12.23 |
| $ | 11.90 |
|
| Performance Ratios (annualized) | | | | | | | | |
| Return on average assets | | 0.66 | % | 0.73 | % | 0.69 | % | 0.62 | % | 0.62 | % | 0.72 | % | 0.74 | % |
| Effective tax rate | | 30.45 | % | 31.54 | % | 30.39 | % | 30.51 | % | 26.82 | % | 30.36 | % | 30.61 | % |
Dividend payout ratio(1) | | 37.93 | % | 32.26 | % | 35.48 | % | 40.74 | % | 40.74 | % | 32.26 | % | 31.25 | % |
| Selected Trend Information | | | | | | | | |
| Average full time equivalent employees | | 4,394 |
| 4,443 |
| 4,415 |
| 4,374 |
| 4,378 |
| 4,421 |
| 4,465 |
|
| Branch count | | | | 215 |
| 215 |
| 215 |
| 225 |
| 228 |
|
| Trust assets under management, at market value | | | | $ | 7,944 |
| $ | 7,844 |
| $ | 7,729 |
| $ | 7,626 |
| $ | 8,068 |
|
| Mortgage loans originated for sale during period | | | | $ | 324 |
| $ | 194 |
| $ | 317 |
| $ | 292 |
| $ | 351 |
|
| Mortgage portfolio serviced for others | | | | $ | 7,776 |
| $ | 7,877 |
| $ | 7,915 |
| $ | 7,907 |
| $ | 7,898 |
|
| Mortgage servicing rights, net / mortgage portfolio serviced for others | | | | 0.74 | % | 0.75 | % | 0.77 | % | 0.78 | % | 0.77 | % |
| Selected Quarterly Ratios | | | | | | | | |
| Loans / deposits | | | | 97.65 | % | 92.95 | % | 89.08 | % | 90.11 | % | 94.99 | % |
| Stockholders’ equity / assets | | | | 10.43 | % | 10.58 | % | 10.60 | % | 10.76 | % | 10.69 | % |
| Shares outstanding, end of period | | | | 151,036 |
| 150,994 |
| 151,239 |
| 150,928 |
| 150,862 |
|
Risk-based Capital (2) (3) | | | | | | | | |
| Total risk-weighted assets | | | | $ | 21,169 |
| $ | 20,454 |
| $ | 19,930 |
| $ | 19,866 |
| $ | 19,610 |
|
| Common equity Tier 1 | | | | $ | 1,941 |
| $ | 1,903 |
| $ | 1,898 |
| $ | 1,865 |
| $ | 1,825 |
|
| Common equity Tier 1 capital ratio | | | | 9.17 | % | 9.30 | % | 9.52 | % | 9.39 | % | 9.31 | % |
| Tier 1 capital ratio | | | | 9.73 | % | 9.88 | % | 10.12 | % | 9.98 | % | 9.90 | % |
| Total capital ratio | | | | 12.16 | % | 12.35 | % | 12.62 | % | 12.49 | % | 12.43 | % |
| Tier 1 leverage ratio | | | | 7.44 | % | 7.55 | % | 7.60 | % | 7.53 | % | 7.53 | % |
| |
| (1) | Ratio is based upon basic earnings per common share. |
| |
| (2) | The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. |
| |
| (3) | June 30, 2016 data is estimated. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information | | | | | | |
| (in thousands) | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | | $ | 277,370 |
| $ | 274,264 |
| 1 | % | | $ | 262,536 |
| $ | 261,538 |
| $ | 265,268 |
| 5 | % |
| Provision for loan losses | | 11,000 |
| 20,000 |
| (45 | )% | | 19,500 |
| 9,000 |
| 5,000 |
| 120 | % |
| Charge offs | | (24,621 | ) | (21,245 | ) | 16 | % | | (12,741 | ) | (11,732 | ) | (14,537 | ) | 69 | % |
| Recoveries | | 4,031 |
| 4,351 |
| (7 | )% | | 4,969 |
| 3,730 |
| 5,807 |
| (31 | )% |
| Net charge offs | | (20,590 | ) | (16,894 | ) | 22 | % | | (7,772 | ) | (8,002 | ) | (8,730 | ) | 136 | % |
| Balance at end of period | | $ | 267,780 |
| $ | 277,370 |
| (3 | )% | | $ | 274,264 |
| $ | 262,536 |
| $ | 261,538 |
| 2 | % |
| Allowance for Unfunded Commitments | | | | | | | | | |
| Balance at beginning of period | | $ | 24,400 |
| $ | 24,400 |
| — | % | | $ | 23,900 |
| $ | 24,900 |
| $ | 24,900 |
| (2 | )% |
| Provision for unfunded commitments | | 3,000 |
| — |
| N/M |
| | 500 |
| (1,000 | ) | — |
| N/M |
|
| Balance at end of period | | $ | 27,400 |
| $ | 24,400 |
| 12 | % | | $ | 24,400 |
| $ | 23,900 |
| $ | 24,900 |
| 10 | % |
| Allowance for credit losses | | $ | 295,180 |
| $ | 301,770 |
| (2 | )% | | $ | 298,664 |
| $ | 286,436 |
| $ | 286,438 |
| 3 | % |
| Provision for credit losses | | $ | 14,000 |
| $ | 20,000 |
| (30 | )% | | $ | 20,000 |
| $ | 8,000 |
| $ | 5,000 |
| 180 | % |
| Net Charge Offs | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | (18,564 | ) | $ | (14,936 | ) | 24 | % | | $ | (4,586 | ) | $ | (4,709 | ) | $ | (3,921 | ) | 373 | % |
| Commercial real estate—owner occupied | | (20 | ) | (43 | ) | (53 | )% | | (291 | ) | 504 |
| (1,198 | ) | (98 | )% |
| Commercial and business lending | | (18,584 | ) | (14,979 | ) | 24 | % | | (4,877 | ) | (4,205 | ) | (5,119 | ) | 263 | % |
| Commercial real estate—investor | | (560 | ) | 1,239 |
| (145 | )% | | (665 | ) | (496 | ) | (1,856 | ) | (70 | )% |
| Real estate construction | | (219 | ) | (28 | ) | N/M |
| | 140 |
| (38 | ) | 673 |
| (133 | )% |
| Commercial real estate lending | | (779 | ) | 1,211 |
| (164 | )% | | (525 | ) | (534 | ) | (1,183 | ) | (34 | )% |
| Total commercial | | (19,363 | ) | (13,768 | ) | 41 | % | | (5,402 | ) | (4,739 | ) | (6,302 | ) | 207 | % |
| Residential mortgage | | (757 | ) | (1,232 | ) | (39 | )% | | (714 | ) | (1,562 | ) | (1,278 | ) | (41 | )% |
| Home equity revolving lines of credit | | 275 |
| (902 | ) | (130 | )% | | (294 | ) | (533 | ) | (246 | ) | (212 | )% |
| Home equity loans junior liens | | 42 |
| (244 | ) | (117 | )% | | (623 | ) | (358 | ) | (118 | ) | (136 | )% |
| Home equity | | 317 |
| (1,146 | ) | (128 | )% | | (917 | ) | (891 | ) | (364 | ) | (187 | )% |
| Other consumer | | (787 | ) | (748 | ) | 5 | % | | (739 | ) | (810 | ) | (786 | ) | — | % |
| Total consumer | | (1,227 | ) | (3,126 | ) | (61 | )% | | (2,370 | ) | (3,263 | ) | (2,428 | ) | (49 | )% |
| Total net charge offs | | $ | (20,590 | ) | $ | (16,894 | ) | 22 | % | | $ | (7,772 | ) | $ | (8,002 | ) | $ | (8,730 | ) | 136 | % |
| Net Charge Offs to Average Loans (in basis points) * | | Jun 30, 2016 | Mar 31, 2016 | | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |
| Commercial and industrial | | (114 | ) | (97 | ) | | | (31 | ) | (31 | ) | (25 | ) | |
| Commercial real estate—owner occupied | | (1 | ) | (2 | ) | | | (12 | ) | 21 |
| (48 | ) | |
| Commercial and business lending | | (100 | ) | (85 | ) | | | (28 | ) | (24 | ) | (29 | ) | |
| Commercial real estate—investor | | (7 | ) | 15 |
| | | (8 | ) | (6 | ) | (24 | ) | |
| Real estate construction | | (7 | ) | (1 | ) | | | 5 |
| (1 | ) | 26 |
| |
| Commercial real estate lending | | (7 | ) | 11 |
| | | (5 | ) | (5 | ) | (11 | ) | |
| Total commercial | | (64 | ) | (48 | ) | | | (19 | ) | (17 | ) | (22 | ) | |
| Residential mortgage | | (5 | ) | (8 | ) | | | (5 | ) | (11 | ) | (9 | ) | |
| Home equity revolving lines of credit | | 13 |
| (41 | ) | | | (13 | ) | (24 | ) | (11 | ) | |
| Home equity loans junior liens | | 15 |
| (83 | ) | | | (195 | ) | (104 | ) | (32 | ) | |
| Home equity | | 13 |
| (46 | ) | | | (36 | ) | (35 | ) | (14 | ) | |
| Other consumer | | (78 | ) | (72 | ) | | | (69 | ) | (75 | ) | (73 | ) | |
| Total consumer | | (7 | ) | (17 | ) | | | (13 | ) | (18 | ) | (14 | ) | |
| Total net charge offs | | (42 | ) | (36 | ) | | | (17 | ) | (17 | ) | (19 | ) | |
| Credit Quality | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Nonaccrual loans | | $ | 282,602 |
| $ | 286,395 |
| (1 | )% | | $ | 178,258 |
| $ | 147,454 |
| $ | 160,361 |
| 76 | % |
| Other real estate owned (OREO) | | 13,669 |
| 16,056 |
| (15 | )% | | 14,569 |
| 13,740 |
| 13,557 |
| 1 | % |
| Total nonperforming assets | | $ | 296,271 |
| $ | 302,451 |
| (2 | )% | | $ | 192,827 |
| $ | 161,194 |
| $ | 173,918 |
| 70 | % |
| Loans 90 or more days past due and still accruing | | $ | 1,494 |
| $ | 1,629 |
| (8 | )% | | $ | 1,648 |
| $ | 1,484 |
| $ | 1,662 |
| (10 | )% |
| Allowance for loan losses to loans | | 1.35 | % | 1.44 | % | | | 1.47 | % | 1.42 | % | 1.43 | % | |
| Allowance for loan losses to nonaccrual loans | | 94.76 |
| 96.85 |
| | | 153.86 |
| 178.05 |
| 163.09 |
| |
| Nonaccrual loans to total loans | | 1.43 |
| 1.49 |
| | | 0.95 |
| 0.80 |
| 0.88 |
| |
| Nonperforming assets to total loans plus OREO | | 1.49 |
| 1.57 |
| | | 1.03 |
| 0.87 |
| 0.95 |
| |
| Nonperforming assets to total assets | | 1.02 |
| 1.07 |
| | | 0.70 |
| 0.59 |
| 0.64 |
| |
| Year-to-date net charge offs to average loans * | | 0.39 |
| 0.36 |
| | | 0.16 |
| 0.16 |
| 0.16 |
| |
| * Annualized | | | | | | | | | |
| N/M = Not meaningful | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information (continued) |
| (in thousands) | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change |
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Nonaccrual loans | | | | | | | | | |
| Commercial and industrial | | $ | 193,439 |
| $ | 197,115 |
| (2 | )% | | $ | 93,575 |
| $ | 60,184 |
| $ | 66,394 |
| 191 | % |
| Commercial real estate—owner occupied | | 9,635 |
| 9,443 |
| 2 | % | | 8,049 |
| 13,368 |
| 18,821 |
| (49 | )% |
| Commercial and business lending | | 203,074 |
| 206,558 |
| (2 | )% | | 101,624 |
| 73,552 |
| 85,215 |
| 138 | % |
| Commercial real estate—investor | | 11,528 |
| 12,330 |
| (7 | )% | | 8,643 |
| 6,921 |
| 6,090 |
| 89 | % |
| Real estate construction | | 957 |
| 840 |
| 14 | % | | 940 |
| 997 |
| 2,906 |
| (67 | )% |
| Commercial real estate lending | | 12,485 |
| 13,170 |
| (5 | )% | | 9,583 |
| 7,918 |
| 8,996 |
| 39 | % |
| Total commercial | | 215,559 |
| 219,728 |
| (2 | )% | | 111,207 |
| 81,470 |
| 94,211 |
| 129 | % |
| Residential mortgage | | 52,300 |
| 52,212 |
| — | % | | 51,482 |
| 51,957 |
| 51,920 |
| 1 | % |
| Home equity revolving lines of credit | | 8,797 |
| 8,822 |
| — | % | | 9,917 |
| 8,060 |
| 8,420 |
| 4 | % |
| Home equity loans junior liens | | 5,566 |
| 5,250 |
| 6 | % | | 5,327 |
| 5,581 |
| 5,356 |
| 4 | % |
| Home equity | | 14,363 |
| 14,072 |
| 2 | % | | 15,244 |
| 13,641 |
| 13,776 |
| 4 | % |
| Other consumer | | 380 |
| 383 |
| (1 | )% | | 325 |
| 386 |
| 454 |
| (16 | )% |
| Total consumer | | 67,043 |
| 66,667 |
| 1 | % | | 67,051 |
| 65,984 |
| 66,150 |
| 1 | % |
| Total nonaccrual loans | | $ | 282,602 |
| $ | 286,395 |
| (1 | )% | | $ | 178,258 |
| $ | 147,454 |
| $ | 160,361 |
| 76 | % |
| | | | | | | | | | |
| Restructured loans (accruing) | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 29,179 |
| $ | 28,908 |
| 1 | % | | $ | 29,293 |
| $ | 28,598 |
| $ | 32,063 |
| (9 | )% |
| Commercial real estate—owner occupied | | 7,509 |
| 7,693 |
| (2 | )% | | 7,877 |
| 7,343 |
| 5,433 |
| 38 | % |
| Commercial and business lending | | 36,688 |
| 36,601 |
| — | % | | 37,170 |
| 35,941 |
| 37,496 |
| (2 | )% |
| Commercial real estate—investor | | 20,191 |
| 20,993 |
| (4 | )% | | 21,915 |
| 18,580 |
| 22,009 |
| (8 | )% |
| Real estate construction | | 372 |
| 386 |
| (4 | )% | | 510 |
| 485 |
| 714 |
| (48 | )% |
| Commercial real estate lending | | 20,563 |
| 21,379 |
| (4 | )% | | 22,425 |
| 19,065 |
| 22,723 |
| (10 | )% |
| Total commercial | | 57,251 |
| 57,980 |
| (1 | )% | | 59,595 |
| 55,006 |
| 60,219 |
| (5 | )% |
| Residential mortgage | | 18,314 |
| 19,807 |
| (8 | )% | | 19,870 |
| 20,054 |
| 21,373 |
| (14 | )% |
| Home equity revolving lines of credit | | 576 |
| 1,377 |
| (58 | )% | | 1,332 |
| 1,121 |
| 1,222 |
| (53 | )% |
| Home equity loans junior liens | | 6,379 |
| 5,540 |
| 15 | % | | 5,737 |
| 5,824 |
| 6,610 |
| (3 | )% |
| Home equity | | 6,955 |
| 6,917 |
| 1 | % | | 7,069 |
| 6,945 |
| 7,832 |
| (11 | )% |
| Other consumer | | 906 |
| 893 |
| 1 | % | | 829 |
| 804 |
| 796 |
| 14 | % |
| Total consumer | | 26,175 |
| 27,617 |
| (5 | )% | | 27,768 |
| 27,803 |
| 30,001 |
| (13 | )% |
| Total restructured loans (accruing) | | $ | 83,426 |
| $ | 85,597 |
| (3 | )% | | $ | 87,363 |
| $ | 82,809 |
| $ | 90,220 |
| (8 | )% |
| Restructured loans included in nonaccrual loans (not included with restructed loans (accruing)) | | $ | 34,841 |
| $ | 35,232 |
| (1 | )% | | $ | 37,684 |
| $ | 36,583 |
| $ | 43,699 |
| (20 | )% |
| | | | | | | | | | |
| Accruing Loans 30-89 Days Past Due | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 2,124 |
| $ | 2,901 |
| (27 | )% | | $ | 1,011 |
| $ | 3,296 |
| $ | 6,357 |
| (67 | )% |
| Commercial real estate—owner occupied | | 193 |
| 520 |
| (63 | )% | | 7,142 |
| 2,018 |
| 1,090 |
| (82 | )% |
| Commercial and business lending | | 2,317 |
| 3,421 |
| (32 | )% | | 8,153 |
| 5,314 |
| 7,447 |
| (69 | )% |
| Commercial real estate—investor | | 2,715 |
| 1,072 |
| 153 | % | | 291 |
| 1,218 |
| 19,843 |
| (86 | )% |
| Real estate construction | | 524 |
| 415 |
| 26 | % | | 296 |
| 373 |
| 312 |
| 68 | % |
| Commercial real estate lending | | 3,239 |
| 1,487 |
| 118 | % | | 587 |
| 1,591 |
| 20,155 |
| (84 | )% |
| Total commercial | | 5,556 |
| 4,908 |
| 13 | % | | 8,740 |
| 6,905 |
| 27,602 |
| (80 | )% |
| Residential mortgage | | 7,382 |
| 3,594 |
| 105 | % | | 4,930 |
| 4,811 |
| 6,602 |
| 12 | % |
| Home equity revolving lines of credit | | 6,075 |
| 3,582 |
| 70 | % | | 5,559 |
| 6,142 |
| 5,157 |
| 18 | % |
| Home equity loans junior liens | | 1,655 |
| 2,222 |
| (26 | )% | | 2,360 |
| 2,423 |
| 1,894 |
| (13 | )% |
| Home equity | | 7,730 |
| 5,804 |
| 33 | % | | 7,919 |
| 8,565 |
| 7,051 |
| 10 | % |
| Other consumer | | 1,895 |
| 1,682 |
| 13 | % | | 1,870 |
| 1,723 |
| 1,655 |
| 15 | % |
| Total consumer | | 17,007 |
| 11,080 |
| 53 | % | | 14,719 |
| 15,099 |
| 15,308 |
| 11 | % |
| Total accruing loans 30-89 days past due | | $ | 22,563 |
| $ | 15,988 |
| 41 | % | | $ | 23,459 |
| $ | 22,004 |
| $ | 42,910 |
| (47 | )% |
| | | | | | | | | | |
| Potential Problem Loans | | Jun 30, 2016 | Mar 31, 2016 | Seql Qtr % Change | | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 379,818 |
| $ | 328,464 |
| 16 | % | | $ | 233,130 |
| $ | 192,174 |
| $ | 127,028 |
| 199 | % |
| Commercial real estate—owner occupied | | 45,671 |
| 41,107 |
| 11 | % | | 35,706 |
| 41,466 |
| 41,997 |
| 9 | % |
| Commercial and business lending | | 425,489 |
| 369,571 |
| 15 | % | | 268,836 |
| 233,640 |
| 169,025 |
| 152 | % |
| Commercial real estate—investor | | 25,081 |
| 25,385 |
| (1 | )% | | 25,944 |
| 23,633 |
| 23,543 |
| 7 | % |
| Real estate construction | | 2,117 |
| 2,422 |
| (13 | )% | | 3,919 |
| 2,354 |
| 1,327 |
| 60 | % |
| Commercial real estate lending | | 27,198 |
| 27,807 |
| (2 | )% | | 29,863 |
| 25,987 |
| 24,870 |
| 9 | % |
| Total commercial | | 452,687 |
| 397,378 |
| 14 | % | | 298,699 |
| 259,627 |
| 193,895 |
| 133 | % |
| Residential mortgage | | 3,953 |
| 3,488 |
| 13 | % | | 2,796 |
| 3,966 |
| 5,341 |
| (26 | )% |
| Home equity revolving lines of credit | | 62 |
| 48 |
| 29 | % | | 48 |
| 141 |
| 202 |
| (69 | )% |
| Home equity loans junior liens | | 32 |
| 161 |
| (80 | )% | | 174 |
| 86 |
| 230 |
| (86 | )% |
| Home equity | | 94 |
| 209 |
| (55 | )% | | 222 |
| 227 |
| 432 |
| (78 | )% |
| Total consumer | | 4,047 |
| 3,697 |
| 9 | % | | 3,018 |
| 4,193 |
| 5,773 |
| (30 | )% |
| Total potential problem loans | | $ | 456,734 |
| $ | 401,075 |
| 14 | % | | $ | 301,717 |
| $ | 263,820 |
| $ | 199,668 |
| 129 | % |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis—Fully Tax-Equivalent Basis — Sequential and Comparable Quarter | | | | |
| | Quarter ended, |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 |
| (in thousands) | Average
Balance | Interest
Income /Expense | Average
Yield /Rate | | Average
Balance | Interest
Income /Expense | Average
Yield /Rate | | Average
Balance | Interest
Income /Expense | Average
Yield /Rate |
| Assets | | | | | | | | | | | |
| Earning assets: | | | | | | | | | | | |
Loans: (1) (2) (3) | | | | | | | | | | | |
| Commercial and business lending | $ | 7,474,633 |
| $ | 59,052 |
| 3.18 | % | | $ | 7,121,061 |
| $ | 57,258 |
| 3.23 | % | | $ | 7,167,315 |
| $ | 56,329 |
| 3.15 | % |
| Commercial real estate lending | 4,654,111 |
| 40,169 |
| 3.47 | % | | 4,469,531 |
| 38,989 |
| 3.51 | % | | 4,148,955 |
| 35,688 |
| 3.45 | % |
| Total commercial | 12,128,744 |
| 99,221 |
| 3.29 | % | | 11,590,592 |
| 96,247 |
| 3.34 | % | | 11,316,270 |
| 92,017 |
| 3.26 | % |
| Residential mortgage | 6,129,924 |
| 48,382 |
| 3.16 | % | | 5,920,280 |
| 47,748 |
| 3.23 | % | | 5,411,193 |
| 44,447 |
| 3.29 | % |
| Retail | 1,383,317 |
| 16,414 |
| 4.75 | % | | 1,411,958 |
| 16,640 |
| 4.72 | % | | 1,460,842 |
| 16,857 |
| 4.62 | % |
| Total loans | 19,641,985 |
| 164,017 |
| 3.35 | % | | 18,922,830 |
| 160,635 |
| 3.41 | % | | 18,188,305 |
| 153,321 |
| 3.38 | % |
| Investment securities: | | | | | | | | | | | |
| Taxable | 4,967,437 |
| 24,270 |
| 1.95 | % | | 5,034,072 |
| 25,516 |
| 2.03 | % | | 4,761,445 |
| 23,868 |
| 2.01 | % |
Tax-exempt(1) | 1,064,252 |
| 12,077 |
| 4.54 | % | | 1,045,210 |
| 11,980 |
| 4.58 | % | | 942,032 |
| 11,575 |
| 4.92 | % |
| Other short-term investments | 294,375 |
| 1,318 |
| 1.80 | % | | 270,261 |
| 1,067 |
| 1.59 | % | | 374,585 |
| 1,771 |
| 1.89 | % |
| Investments and other | 6,326,064 |
| 37,665 |
| 2.38 | % | | 6,349,543 |
| 38,563 |
| 2.43 | % | | 6,078,062 |
| 37,214 |
| 2.45 | % |
| Total earning assets | 25,968,049 |
| $ | 201,682 |
| 3.12 | % | | 25,272,373 |
| $ | 199,198 |
| 3.16 | % | | 24,266,367 |
| $ | 190,535 |
| 3.15 | % |
| Other assets, net | 2,674,427 |
| | | | 2,426,475 |
| | | | 2,461,765 |
| | |
| Total assets | $ | 28,642,476 |
| | | | $ | 27,698,848 |
| | | | $ | 26,728,132 |
| | |
| Liabilities and stockholder's equity | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings | $ | 1,445,020 |
| $ | 228 |
| 0.06 | % | | $ | 1,367,646 |
| $ | 236 |
| 0.07 | % | | $ | 1,352,616 |
| $ | 259 |
| 0.08 | % |
| Interest-bearing demand | 3,640,733 |
| 2,144 |
| 0.24 | % | | 3,220,409 |
| 2,032 |
| 0.25 | % | | 3,251,196 |
| 1,037 |
| 0.13 | % |
| Money market | 8,692,782 |
| 6,309 |
| 0.29 | % | | 9,432,245 |
| 6,444 |
| 0.27 | % | | 9,101,589 |
| 4,088 |
| 0.18 | % |
| Time deposits | 1,540,424 |
| 2,997 |
| 0.78 | % | | 1,558,278 |
| 3,054 |
| 0.79 | % | | 1,630,242 |
| 2,757 |
| 0.68 | % |
| Total interest-bearing deposits | 15,318,959 |
| 11,678 |
| 0.31 | % | | 15,578,578 |
| 11,766 |
| 0.30 | % | | 15,335,643 |
| 8,141 |
| 0.21 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 674,360 |
| 378 |
| 0.23 | % | | 559,459 |
| 296 |
| 0.21 | % | | 662,047 |
| 235 |
| 0.14 | % |
| Other short-term funding | 1,209,511 |
| 845 |
| 0.28 | % | | 777,898 |
| 515 |
| 0.27 | % | | 236,459 |
| 115 |
| 0.20 | % |
| Total short-term funding | 1,883,871 |
| 1,223 |
| 0.26 | % | | 1,337,357 |
| 811 |
| 0.24 | % | | 898,506 |
| 350 |
| 0.16 | % |
| Long-term funding | 3,052,581 |
| 6,923 |
| 0.91 | % | | 2,582,538 |
| 9,505 |
| 1.47 | % | | 3,077,012 |
| 10,642 |
| 1.38 | % |
| Total short and long-term funding | 4,936,452 |
| 8,146 |
| 0.66 | % | | 3,919,895 |
| 10,316 |
| 1.05 | % | | 3,975,518 |
| 10,992 |
| 1.11 | % |
| Total interest-bearing liabilities | 20,255,411 |
| $ | 19,824 |
| 0.39 | % | | 19,498,473 |
| $ | 22,082 |
| 0.45 | % | | 19,311,161 |
| $ | 19,133 |
| 0.40 | % |
| Noninterest-bearing demand deposits | 4,969,994 |
| | | | 4,996,596 |
| | | | 4,290,567 |
| | |
| Other liabilities | 228,027 |
| | | | 233,029 |
| | | | 251,743 |
| | |
| Stockholders’ equity | 3,189,044 |
| | | | 2,970,750 |
| | | | 2,874,661 |
| | |
| Total liabilities and stockholders’ equity | $ | 28,642,476 |
| | | | $ | 27,698,848 |
| | | | $ | 26,728,132 |
| | |
| Interest rate spread | | | 2.73 | % | | | | 2.71 | % | | | | 2.75 | % |
| Net free funds | | | 0.08 | % | | | | 0.10 | % | | | | 0.08 | % |
| Fully tax-equivalent net interest income and net interest margin | | $ | 181,858 |
| 2.81 | % | | | $ | 177,116 |
| 2.81 | % | | | $ | 171,402 |
| 2.83 | % |
| Fully tax-equivalent adjustment | | 5,141 |
| | | | 5,129 |
| | | | 4,914 |
| |
| Net interest income | | $ | 176,717 |
| | | | $ | 171,987 |
| | | | $ | 166,488 |
| |
| |
| (1) | The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions. |
| |
| (2) | Nonaccrual loans and loans held for sale have been included in the average balances. |
| |
| (3) | Interest income includes net loan fees. |
|
| | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis—Fully Tax-Equivalent Basis — Year Over Year |
| | | Six Months ended June 30, |
| | | 2016 | | 2015 |
| (in thousands) | | Average
Balance | | Interest
Income /Expense | | Average
Yield /Rate | | Average
Balance | | Interest
Income /Expense | | Average
Yield /Rate |
| Assets | | | | | | | | | | | | |
| Earning assets: | | | | | | | | | | | | |
Loans: (1) (2) (3) | | | | | | | | | | | | |
| Commercial and business lending | | $ | 7,297,847 |
| | $ | 116,310 |
| | 3.20 | % | | $ | 7,080,723 |
| | $ | 112,244 |
| | 3.19 | % |
| Commercial real estate lending | | 4,561,821 |
| | 79,158 |
| | 3.49 | % | | 4,125,972 |
| | 72,091 |
| | 3.52 | % |
| Total commercial | | 11,859,668 |
| | 195,468 |
| | 3.31 | % | | 11,206,695 |
| | 184,335 |
| | 3.32 | % |
| Residential mortgage | | 6,025,102 |
| | 96,130 |
| | 3.19 | % | | 5,321,942 |
| | 87,919 |
| | 3.31 | % |
| Retail | | 1,397,638 |
| | 33,054 |
| | 4.74 | % | | 1,474,104 |
| | 33,938 |
| | 4.62 | % |
| Total loans | | 19,282,408 |
| | 324,652 |
| | 3.38 | % | | 18,002,741 |
| | 306,192 |
| | 3.42 | % |
| Investment securities | | | | | | | | | | | | |
| Taxable | | 5,000,754 |
| | 49,786 |
| | 1.99 | % | | 4,782,809 |
| | 48,960 |
| | 2.05 | % |
Tax-exempt (1) | | 1,054,731 |
| | 24,057 |
| | 4.56 | % | | 946,161 |
| | 23,642 |
| | 5.00 | % |
| Other short-term investments | | 282,318 |
| | 2,385 |
| | 1.70 | % | | 475,812 |
| | 3,463 |
| | 1.46 | % |
| Investments and other | | 6,337,803 |
| | 76,228 |
| | 2.41 | % | | 6,204,782 |
| | 76,065 |
| | 2.45 | % |
| Total earning assets | | 25,620,211 |
| | $ | 400,880 |
| | 3.14 | % | | 24,207,523 |
| | $ | 382,257 |
| | 3.17 | % |
| Other assets, net | | 2,450,451 |
| | | | | | 2,458,235 |
| | | | |
| Total assets | | $ | 28,070,662 |
| | | | | | $ | 26,665,758 |
| | | | |
| Liabilities and stockholder's equity | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | |
| Savings | | $ | 1,406,333 |
| | $ | 464 |
| | 0.07 | % | | $ | 1,315,250 |
| | $ | 497 |
| | 0.08 | % |
| Interest-bearing demand | | 3,430,571 |
| | 4,176 |
| | 0.24 | % | | 3,227,593 |
| | 2,087 |
| | 0.13 | % |
| Money market | | 9,062,514 |
| | 12,753 |
| | 0.28 | % | | 8,878,663 |
| | 7,873 |
| | 0.18 | % |
| Time deposits | | 1,549,351 |
| | 6,051 |
| | 0.79 | % | | 1,612,312 |
| | 5,303 |
| | 0.66 | % |
| Total interest-bearing deposits | | 15,448,769 |
| | 23,444 |
| | 0.31 | % | | 15,033,818 |
| | 15,760 |
| | 0.21 | % |
| Federal funds purchased and securities sold under agreements to repurchase | | 617,007 |
| | 674 |
| | 0.22 | % | | 623,984 |
| | 466 |
| | 0.15 | % |
| Other short-term funding | | 993,704 |
| | 1,360 |
| | 0.28 | % | | 178,173 |
| | 196 |
| | 0.22 | % |
| Total short-term funding | | 1,610,711 |
| | 2,034 |
| | 0.25 | % | | 802,157 |
| | 662 |
| | 0.17 | % |
| Long-term funding | | 2,817,560 |
| | 16,428 |
| | 1.17 | % | | 3,402,382 |
| | 21,514 |
| | 1.27 | % |
| Total short and long-term funding | | 4,428,271 |
| | 18,462 |
| | 0.84 | % | | 4,204,539 |
| | 22,176 |
| | 1.06 | % |
| Total interest-bearing liabilities | | 19,877,040 |
| | $ | 41,906 |
| | 0.42 | % | | 19,238,357 |
| | $ | 37,936 |
| | 0.40 | % |
| Noninterest-bearing demand deposits | | 4,983,197 |
| | | | | | 4,308,463 |
| | | | |
| Other liabilities | | 230,528 |
| | | | | | 259,160 |
| | | | |
| Stockholders’ equity | | 2,979,897 |
| | | | | | 2,859,778 |
| | | | |
| Total liabilities and stockholders’ equity | | $ | 28,070,662 |
| | | | | | $ | 26,665,758 |
| | | | |
| Interest rate spread | | | | | | 2.72 | % | | | | | | 2.77 | % |
| Net free funds | | | | | | 0.09 | % | | | | | | 0.09 | % |
| Fully tax-equivalent net interest income and net interest margin | | | | $ | 358,974 |
| | 2.81 | % | | | | $ | 344,321 |
| | 2.86 | % |
| Fully tax-equivalent adjustment | | | | 10,270 |
| | | | | | 10,020 |
| | |
| Net interest income | | | | $ | 348,704 |
| | | | | | $ | 334,301 |
| | |
| |
| (1) | The yield on tax exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions. |
| |
| (2) | Nonaccrual loans and loans held for sale have been included in the average balances. |
| |
| (3) | Interest income includes net loan fees. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp Loan and Deposit Composition (in thousands) | | | | | | | | | | | | | | |
| Period End Loan Composition | | Jun 30, 2016 | | Mar 31, 2016 | | Seql Qtr % Change | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,701,986 |
| | $ | 6,511,648 |
| | 3 | % | | $ | 6,190,683 |
| | $ | 6,128,080 |
| | $ | 6,255,092 |
| | 7 | % |
| Commercial real estate—owner occupied | | 921,736 |
| | 917,285 |
| | — | % | | 918,212 |
| | 966,689 |
| | 978,183 |
| | (6 | )% |
| Commercial and business lending | | 7,623,722 |
| | 7,428,933 |
| | 3 | % | | 7,108,895 |
| | 7,094,769 |
| | 7,233,275 |
| | 5 | % |
| Commercial real estate—investor | | 3,495,791 |
| | 3,276,733 |
| | 7 | % | | 3,234,266 |
| | 3,183,352 |
| | 3,126,440 |
| | 12 | % |
| Real estate construction | | 1,285,573 |
| | 1,184,398 |
| | 9 | % | | 1,162,145 |
| | 1,124,280 |
| | 1,092,308 |
| | 18 | % |
| Commercial real estate lending | | 4,781,364 |
| | 4,461,131 |
| | 7 | % | | 4,396,411 |
| | 4,307,632 |
| | 4,218,748 |
| | 13 | % |
| Total commercial | | 12,405,086 |
| | 11,890,064 |
| | 4 | % | | 11,505,306 |
| | 11,402,401 |
| | 11,452,023 |
| | 8 | % |
| Residential mortgage | | 6,035,720 |
| | 5,944,457 |
| | 2 | % | | 5,783,267 |
| | 5,682,178 |
| | 5,398,434 |
| | 12 | % |
| Home equity revolving lines of credit | | 861,311 |
| | 867,860 |
| | (1 | )% | | 883,759 |
| | 883,573 |
| | 880,628 |
| | (2 | )% |
| Home equity loans junior liens | | 107,460 |
| | 115,134 |
| | (7 | )% | | 122,043 |
| | 130,892 |
| | 141,344 |
| | (24 | )% |
| Home equity | | 968,771 |
| | 982,994 |
| | (1 | )% | | 1,005,802 |
| | 1,014,465 |
| | 1,021,972 |
| | (5 | )% |
| Other consumer | | 405,709 |
| | 409,725 |
| | (1 | )% | | 419,968 |
| | 425,729 |
| | 430,823 |
| | (6 | )% |
| Total consumer | | 7,410,200 |
| | 7,337,176 |
| | 1 | % | | 7,209,037 |
| | 7,122,372 |
| | 6,851,229 |
| | 8 | % |
| Total loans | | $ | 19,815,286 |
| | $ | 19,227,240 |
| | 3 | % | | $ | 18,714,343 |
| | $ | 18,524,773 |
| | $ | 18,303,252 |
| | 8 | % |
| | | | | | | | | | | | | | | |
| Period End Deposit and Customer Funding Composition | | Jun 30, 2016 | | Mar 31, 2016 | | Seql Qtr % Change | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,039,336 |
| | $ | 5,272,685 |
| | (4 | )% | | $ | 5,562,466 |
| | $ | 4,657,261 |
| | $ | 4,332,171 |
| | 16 | % |
| Savings | | 1,451,801 |
| | 1,426,951 |
| | 2 | % | | 1,334,420 |
| | 1,346,407 |
| | 1,359,478 |
| | 7 | % |
| Interest-bearing demand | | 3,789,138 |
| | 3,698,941 |
| | 2 | % | | 3,445,000 |
| | 3,416,429 |
| | 3,576,311 |
| | 6 | % |
| Money market | | 8,448,543 |
| | 8,718,841 |
| | (3 | )% | | 9,102,977 |
| | 9,516,503 |
| | 8,374,186 |
| | 1 | % |
| Brokered CDs | | 46,268 |
| | 41,440 |
| | 12 | % | | 42,443 |
| | 42,689 |
| | 39,760 |
| | 16 | % |
| Other time | | 1,517,764 |
| | 1,526,602 |
| | (1 | )% | | 1,520,359 |
| | 1,579,106 |
| | 1,587,657 |
| | (4 | )% |
| Total deposits | | 20,292,850 |
| | 20,685,460 |
| | (2 | )% | | 21,007,665 |
| | 20,558,395 |
| | 19,269,563 |
| | 5 | % |
| Customer funding | | 464,880 |
| | 508,262 |
| | (9 | )% | | 383,568 |
| | 524,630 |
| | 433,044 |
| | 7 | % |
| Total deposits and customer funding | | $ | 20,757,730 |
| | $ | 21,193,722 |
| | (2 | )% | | $ | 21,391,233 |
| | $ | 21,083,025 |
| | $ | 19,702,607 |
| | 5 | % |
| Network transaction deposits included above in interest-bearing demand & money market | | $ | 3,141,214 |
| | $ | 3,399,054 |
| | (8 | )% | | $ | 3,174,911 |
| | $ | 3,207,867 |
| | $ | 2,920,939 |
| | 8 | % |
| Brokered CDs | | 46,268 |
| | 41,440 |
| | 12 | % | | 42,443 |
| | 42,689 |
| | 39,760 |
| | 16 | % |
| Total network and brokered funding | | 3,187,482 |
| | 3,440,494 |
| | (7 | )% | | 3,217,354 |
| | 3,250,556 |
| | 2,960,699 |
| | 8 | % |
Net customer deposits and funding(1) | | $ | 17,570,248 |
| | $ | 17,753,228 |
| | (1 | )% | | $ | 18,173,879 |
| | $ | 17,832,469 |
| | $ | 16,741,908 |
| | 5 | % |
| |
| Quarter Average Loan Composition | | Jun 30, 2016 | | Mar 31, 2016 | | Seql Qtr % Change | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,559,613 |
| | $ | 6,207,458 |
| | 6 | % | | $ | 5,947,939 |
| | $ | 6,119,552 |
| | $ | 6,171,334 |
| | 6 | % |
| Commercial real estate—owner occupied | | 915,020 |
| | 913,603 |
| | — | % | | 944,223 |
| | 970,112 |
| | 995,981 |
| | (8 | )% |
| Commercial and business lending | | 7,474,633 |
| | 7,121,061 |
| | 5 | % | | 6,892,162 |
| | 7,089,664 |
| | 7,167,315 |
| | 4 | % |
| Commercial real estate—investor | | 3,448,741 |
| | 3,298,522 |
| | 5 | % | | 3,266,008 |
| | 3,134,454 |
| | 3,110,637 |
| | 11 | % |
| Real estate construction | | 1,205,370 |
| | 1,171,009 |
| | 3 | % | | 1,107,452 |
| | 1,125,875 |
| | 1,038,318 |
| | 16 | % |
| Commercial real estate lending | | 4,654,111 |
| | 4,469,531 |
| | 4 | % | | 4,373,460 |
| | 4,260,329 |
| | 4,148,955 |
| | 12 | % |
| Total commercial | | 12,128,744 |
| | 11,590,592 |
| | 5 | % | | 11,265,622 |
| | 11,349,993 |
| | 11,316,270 |
| | 7 | % |
| Residential mortgage | | 6,129,924 |
| | 5,920,280 |
| | 4 | % | | 5,845,557 |
| | 5,658,253 |
| | 5,411,193 |
| | 13 | % |
| Home equity revolving lines of credit | | 863,941 |
| | 876,820 |
| | (1 | )% | | 882,599 |
| | 880,660 |
| | 881,036 |
| | (2 | )% |
| Home equity loans junior liens | | 111,372 |
| | 118,610 |
| | (6 | )% | | 126,658 |
| | 136,254 |
| | 147,391 |
| | (24 | )% |
| Home equity | | 975,313 |
| | 995,430 |
| | (2 | )% | | 1,009,257 |
| | 1,016,914 |
| | 1,028,427 |
| | (5 | )% |
| Other consumer | | 408,004 |
| | 416,528 |
| | (2 | )% | | 422,252 |
| | 427,589 |
| | 432,415 |
| | (6 | )% |
| Total consumer | | 7,513,241 |
| | 7,332,238 |
| | 2 | % | | 7,277,066 |
| | 7,102,756 |
| | 6,872,035 |
| | 9 | % |
| Total loans | | $ | 19,641,985 |
| | $ | 18,922,830 |
| | 4 | % | | $ | 18,542,688 |
| | $ | 18,452,749 |
| | $ | 18,188,305 |
| | 8 | % |
| | | | | | | | | | | | | | | |
| Quarter Average Deposit Composition | | Jun 30, 2016 | | Mar 31, 2016 | | Seql Qtr % Change | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 4,969,994 |
| | $ | 4,996,596 |
| | (1 | )% | | $ | 4,967,719 |
| | $ | 4,573,840 |
| | $ | 4,290,567 |
| | 16 | % |
| Savings | | 1,445,020 |
| | 1,367,646 |
| | 6 | % | | 1,358,141 |
| | 1,357,677 |
| | 1,352,616 |
| | 7 | % |
| Interest-bearing demand | | 3,640,733 |
| | 3,220,409 |
| | 13 | % | | 3,150,628 |
| | 3,199,391 |
| | 3,251,196 |
| | 12 | % |
| Money market | | 8,692,782 |
| | 9,432,245 |
| | (8 | )% | | 9,534,551 |
| | 9,538,030 |
| | 9,101,589 |
| | (4 | )% |
| Time deposits | | 1,540,424 |
| | 1,558,278 |
| | (1 | )% | | 1,604,864 |
| | 1,624,661 |
| | 1,630,242 |
| | (6 | )% |
| Total deposits | | $ | 20,288,953 |
| | $ | 20,575,174 |
| | (1 | )% | | $ | 20,615,903 |
| | $ | 20,293,599 |
| | $ | 19,626,210 |
| | 3 | % |
| |
| (1) | Total deposits and customer funding excluding total network and brokered funding. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation | | | | | | | |
| ($ in millions) | YTD
Jun 2016 | YTD
Jun 2015 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 |
Tangible Common Equity Reconciliation (1) | | | | | | | |
| Common equity | | | $ | 2,910 |
| $ | 2,862 |
| $ | 2,816 |
| $ | 2,832 |
| $ | 2,782 |
|
| Goodwill and other intangible assets, net | | | (988 | ) | (989 | ) | (985 | ) | (986 | ) | (987 | ) |
| Tangible common equity | | | $ | 1,922 |
| $ | 1,873 |
| $ | 1,831 |
| $ | 1,846 |
| $ | 1,795 |
|
Tangible Assets Reconciliation (1) | | | | | | | |
| Total assets | | | $ | 29,039 |
| $ | 28,179 |
| $ | 27,712 |
| $ | 27,464 |
| $ | 27,181 |
|
| Goodwill and other intangible assets, net | | | (988 | ) | (989 | ) | (985 | ) | (986 | ) | (987 | ) |
| Tangible assets | | | $ | 28,051 |
| $ | 27,190 |
| $ | 26,727 |
| $ | 26,478 |
| $ | 26,194 |
|
Average Tangible Common Equity and Common Equity Tier 1 Reconciliation (1) | | | | | | | |
| Common equity | $ | 2,859 |
| $ | 2,790 |
| $ | 2,869 |
| $ | 2,849 |
| $ | 2,819 |
| $ | 2,798 |
| $ | 2,794 |
|
| Goodwill and other intangible assets, net | (989 | ) | (979 | ) | (989 | ) | (989 | ) | (985 | ) | (986 | ) | (987 | ) |
| Tangible common equity | 1,870 |
| 1,811 |
| 1,880 |
| 1,860 |
| 1,834 |
| 1,812 |
| 1,807 |
|
| Less: Accumulated other comprehensive income / loss | 2 |
| (17 | ) | 1 |
| 3 |
| 4 |
| (7 | ) | (16 | ) |
| Less: Deferred tax assets / deferred tax liabilities, net | 33 |
| 18 |
| 32 |
| 33 |
| 34 |
| 32 |
| 29 |
|
| Average common equity Tier 1 | $ | 1,905 |
| $ | 1,812 |
| $ | 1,913 |
| $ | 1,896 |
| $ | 1,872 |
| $ | 1,837 |
| $ | 1,820 |
|
Selected Trend Information (2) | | | | | | | |
Fee-based revenue (3) | $ | 132 |
| $ | 130 |
| $ | 67 |
| $ | 65 |
| $ | 63 |
| $ | 64 |
| $ | 66 |
|
Total revenue (4) | $ | 514 |
| $ | 501 |
| $ | 259 |
| $ | 255 |
| $ | 254 |
| $ | 251 |
| $ | 253 |
|
Selected Equity and Performance Ratios (1) (5) | | | | | | | |
| Tangible common equity / tangible assets | | | 6.85 | % | 6.89 | % | 6.85 | % | 6.97 | % | 6.86 | % |
| Return on average equity | 6.18 | % | 6.77 | % | 6.19 | % | 5.76 | % | 5.77 | % | 6.72 | % | 6.89 | % |
| Return on average tangible common equity | 9.38 | % | 10.39 | % | 10.04 | % | 8.72 | % | 8.78 | % | 10.35 | % | 10.62 | % |
| Return on average common equity Tier 1 | 9.21 | % | 10.38 | % | 9.86 | % | 8.55 | % | 8.60 | % | 10.20 | % | 10.55 | % |
Efficiency Ratio Reconciliation (6) | | | | | | | |
| Federal Reserve efficiency ratio | 69.18 | % | 70.24 | % | 69.34 | % | 69.01 | % | 70.49 | % | 68.85 | % | 70.23 | % |
| Fully tax-equivalent adjustment | (1.36 | )% | (1.37 | )% | (1.36 | )% | (1.37 | )% | (1.52 | )% | (1.38 | )% | (1.35 | )% |
| Other intangible amortization | (0.21 | )% | (0.34 | )% | (0.21 | )% | (0.20 | )% | (0.21 | )% | (0.36 | )% | (0.35 | )% |
| Fully tax-equivalent efficiency ratio | 67.61 | % | 68.53 | % | 67.77 | % | 67.44 | % | 68.76 | % | 67.11 | % | 68.53 | % |
| |
| (1) | The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net, which is a non-GAAP financial measure. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. |
| |
| (2) | These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation’s results of operations. |
| |
| (3) | Fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions, as presented on Pages 2 and 3 of the Consolidated Statements of Income. |
| |
| (4) | Total revenue, a non-GAAP financial measure, is the sum of net interest income and noninterest income, as presented on Pages 2 and 3 of the Consolidated Statements of Income. |
| |
| (5) | The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. These regulatory capital measurements are used by management, regulators, investors, and analysts to assess, monitor and compare the quality and composition of our capital with the capital of other financial services companies. |
| |
| (6) | The efficiency ratio as defined by the Federal Reserve guidance is noninterest expense (which includes the provision for unfunded commitments) divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. The fully tax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net. Management believes the fully tax-equivalent efficiency ratio, which adjusts net interest income for the tax-favored status of certain loans and investment securities, to be the preferred industry measurement as it enhances the comparability of net interest income arising from taxable and tax-exempt sources. |
