Exhibit 99.1
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| 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 Third Quarter Earnings of $0.34 per share
Record deposits and capital markets revenues contribute to bottom line growth
GREEN BAY, Wis. -- October 20, 2016 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $52 million, or $0.34 per common share, for the quarter ended September 30, 2016. This compares to net income available to common equity of $47 million, or $0.31 per common share, for both the quarters ended June 30, 2016 and September 30, 2015.
“In the third quarter, we reached record deposit levels. We saw significant seasonal deposit inflows and we are particularly pleased with double-digit year over year growth in demand deposits. Average loans continued to grow and we remain on track to meet our 2016 loan guidance. Mortgage banking activity and record capital markets revenues drove noninterest income higher in the third quarter, which more than offset seasonally lower insurance commissions and additional loan loss provisions,” said President and CEO Philip B. Flynn.
THIRD QUARTER SUMMARY
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| • | Average loans of $20.1 billion increased $411 million, or 2% from the second quarter |
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| • | Total commercial lending grew 10% year over year |
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| • | Average deposits of $21.4 billion increased $1.1 billion, or 5% from the second quarter |
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| • | Noninterest-bearing demand deposits grew 13% year over year |
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| • | Net interest income of $179 million was up $2 million, or 1% from the second quarter |
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| • | Net interest income grew 5% year over year |
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| • | Net interest margin of 2.77%, down from 2.81% in the second quarter |
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| • | Net interest margin was down 5 basis points year over year |
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| • | Provision for credit losses of $21 million was up $7 million from the second quarter |
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| • | Noninterest income of $95 million was up $13 million, or 16% from the second quarter |
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| • | Noninterest expense of $175 million was up $1 million, or 1% from the second quarter |
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| • | Return on average common equity Tier 1 (CET1) was 10.5%, up from 9.9% in the second quarter |
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| • | Total dividends per common share of $0.11 were up 10% from the year ago quarter |
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| • | Capital ratios remain strong with a CET1 ratio of 9.3% at quarter end, compared to 9.2% at prior quarter end |
THIRD QUARTER RESULTS
Loans
Third quarter average loans of $20.1 billion increased $411 million, or 2% from the second quarter, and have increased $1.6 billion, or 9% from the year ago quarter.
With respect to third quarter average balances,
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| • | Commercial real estate lending grew $202 million, or 4% from the second quarter to $4.9 billion. Commercial real estate lending has increased $595 million, or 14% from the year ago quarter. |
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| • | Consumer lending grew $106 million, net of $239 million of portfolio loan sales, or 1% from the second quarter to $7.6 billion, and has increased $517 million, or 7% from the year ago quarter. |
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| • | Commercial and business lending grew $103 million, or 1% from the second quarter to $7.6 billion, with growth driven by mortgage warehouse and power and utilities. Commercial and business lending has increased $488 million, or 7% from the year ago quarter. |
Deposits
Third quarter average deposits of $21.4 billion increased $1.1 billion, or 5% from the second quarter, and have increased $1.1 billion, or 5% from the year ago quarter.
With respect to third quarter average balances,
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| • | Interest-bearing demand deposits grew $511 million, or 14% from the second quarter to $4.2 billion, and have grown $952 million, or 30% from the year ago quarter. |
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| • | Noninterest-bearing demand deposits grew $192 million, or 4% from the second quarter to $5.2 billion, and have grown $588 million, or 13% from the year ago quarter. |
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| • | Savings and time deposits increased modestly from the second quarter. Savings deposits have grown $91 million, or 7% from the year ago quarter. Time deposits have decreased $71 million, or 4% from the year ago quarter. |
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| • | Money market deposits grew $396 million, or 5% from the second quarter to $9.1 billion, but have decreased $449 million, or 5% from the year ago quarter as we continue to optimize our funding costs. |
Net Interest Income and Net Interest Margin
Third quarter net interest income of $179 million was up $2 million, or 1% from the second quarter, and was up $8 million, or 5% from the year ago quarter. Third quarter net interest margin of 2.77% was 5 basis points lower than the year ago quarter.
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| • | Interest and fees on loans increased $4 million, or 3% from the second quarter. The total loan yield of 3.35% was unchanged from the second quarter. |
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| • | Interest expense on deposits increased $1 million, or 12% from the second quarter. Total deposits costs, including the benefit of free funds, were essentially unchanged from the second quarter. |
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| • | The yields on investment securities declined from the second quarter, and accounted for the majority of the margin compression. |
Noninterest Income
Third quarter total noninterest income of $95 million was up $13 million, or 16% from the second quarter, and was up $15 million, or 19% from the year ago quarter.
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| • | Mortgage banking income increased $14 million to $18 million for the quarter. The Company benefitted from higher volumes of mortgage loans originated for sale during the quarter, and recorded a $2 million positive fair value mark on its loan pipeline at quarter end. Portfolio loan sales generated $9 million of gross gains during the quarter. |
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| • | Capital market fees increased $3 million to $7 million for the quarter on higher derivative and syndication activity. |
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| • | Fee-based revenue decreased $2 million from the second quarter due to seasonally lower insurance commissions. All other fee-based revenue categories were higher in the third quarter, including service charges on deposit accounts, trust service fees, card-based and other nondeposit fees, and brokerage and annuity commissions. |
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| • | All other noninterest income categories, collectively, decreased $2 million from the second quarter, primarily attributable to lower investment securities gains. The Company did not engage in further restructuring of its investment portfolio during the third quarter. |
Noninterest Expense
Third quarter total noninterest expense of $175 million was up $1 million, or 1% from the second quarter, and was up $4 million, or 2% from the year ago quarter.
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| • | Personnel expense increased $2 million from the second quarter and included $1 million of severance. |
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| • | Occupancy expense increased from the second quarter, due to a $2 million lease termination charge related to planned consolidation of office space in Chicago. |
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| • | All other noninterest expense categories, collectively, decreased $3 million from the prior quarter primarily related to lower business development and advertising expense. |
Taxes
Third quarter income tax expense was $24 million with an effective tax rate of 31%, compared to $21 million and 30% in the second quarter, and $22 million and 30% in the year ago quarter.
Credit
The provision for credit losses was $21 million in the third quarter, up $7 million from the prior quarter, with the increase primarily attributable to the Company’s oil and gas portfolio.
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| • | Nonaccrual loans of $290 million were up $7 million from the second quarter. The nonaccrual loans to total loans ratio was 1.46% in the third quarter, compared to 1.43% in the prior quarter. |
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| • | Net charge offs of $18 million were down $2 million from the second quarter. Net charge offs in the third quarter were primarily attributable to oil and gas related charge offs of $22 million, which were partially offset by recoveries in the commercial portfolio. |
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| • | Potential problem loans of $441 million were down $16 million from the second quarter. |
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| • | The allowance for loan losses of $270 million was up $2 million from the second quarter. The allowance for loan losses to total loans was 1.36% in the third quarter, compared to 1.35% in the second quarter. |
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| • | The allowance related to the oil and gas portfolio was $38 million, compared to $42 million at June 30, 2016, and $29 million at September 30, 2015. The allowance on this portfolio reflects year to date net charge offs of $53 million. The allowance represented 5.5% of total oil and gas loans at September 30, 2016, compared to 5.6% at June 30, 2016, and 3.8% at September 30, 2015. |
Capital
The Company’s capital position remains strong, with a common equity Tier 1 ratio of 9.3% at September 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.
THIRD 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, October 20, 2016. Interested parties can access the live webcast of the call through the Investor Relations section of the Company's website, http://investor.associatedbank.com. Parties may also dial into the call at 877-407-8037 (domestic) or 201-689-8037 (international) and request the Associated Banc-Corp third quarter 2016 earnings call. The third quarter 2016 financial tables and an accompanying slide presentation will be available on the Company's website just prior to the 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.
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Associated Banc-Corp
Consolidated Balance Sheets (Unaudited) | | | | | | |
| (in thousands) | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr $ Change | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr $ Change |
| Assets | | | | | | | | |
| Cash and due from banks | | $ | 356,047 |
| $ | 333,000 |
| $ | 23,047 |
| $ | 287,183 |
| $ | 374,921 |
| $ | 303,701 |
| $ | 52,346 |
|
| Interest-bearing deposits in other financial institutions | | 240,010 |
| 131,680 |
| 108,330 |
| 68,025 |
| 79,764 |
| 70,023 |
| 169,987 |
|
| Federal funds sold and securities purchased under agreements to resell | | 14,250 |
| 13,200 |
| 1,050 |
| 20,200 |
| 19,000 |
| 36,490 |
| (22,240 | ) |
| Investment securities held to maturity, at amortized cost | | 1,253,494 |
| 1,236,140 |
| 17,354 |
| 1,176,821 |
| 1,168,230 |
| 604,799 |
| 648,695 |
|
| Investment securities available for sale, at fair value | | 4,846,088 |
| 4,801,766 |
| 44,322 |
| 4,905,841 |
| 4,967,414 |
| 5,403,656 |
| (557,568 | ) |
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | | 140,215 |
| 194,501 |
| (54,286 | ) | 181,853 |
| 147,240 |
| 160,871 |
| (20,656 | ) |
| Loans held for sale | | 230,795 |
| 284,376 |
| (53,581 | ) | 128,339 |
| 124,915 |
| 105,144 |
| 125,651 |
|
| Loans | | 19,844,005 |
| 19,815,286 |
| 28,719 |
| 19,227,240 |
| 18,714,343 |
| 18,524,773 |
| 1,319,232 |
|
| Allowance for loan losses | | (269,540 | ) | (267,780 | ) | (1,760 | ) | (277,370 | ) | (274,264 | ) | (262,536 | ) | (7,004 | ) |
| Loans, net | | 19,574,465 |
| 19,547,506 |
| 26,959 |
| 18,949,870 |
| 18,440,079 |
| 18,262,237 |
| 1,312,228 |
|
| Premises and equipment, net | | 329,726 |
| 331,427 |
| (1,701 | ) | 331,711 |
| 267,606 |
| 271,119 |
| 58,607 |
|
| Goodwill | | 971,951 |
| 971,951 |
| — |
| 971,951 |
| 968,844 |
| 968,844 |
| 3,107 |
|
| Mortgage servicing rights, net | | 58,414 |
| 57,474 |
| 940 |
| 59,414 |
| 61,341 |
| 61,402 |
| (2,988 | ) |
| Other intangible assets, net | | 15,902 |
| 16,427 |
| (525 | ) | 16,966 |
| 16,458 |
| 16,978 |
| (1,076 | ) |
| Trading assets | | 60,780 |
| 77,112 |
| (16,332 | ) | 53,087 |
| 32,192 |
| 43,752 |
| 17,028 |
|
| Other assets | | 1,060,627 |
| 1,042,139 |
| 18,488 |
| 1,027,606 |
| 1,043,831 |
| 1,154,750 |
| (94,123 | ) |
| Total assets | | $ | 29,152,764 |
| $ | 29,038,699 |
| $ | 114,065 |
| $ | 28,178,867 |
| $ | 27,711,835 |
| $ | 27,463,766 |
| $ | 1,688,998 |
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| Liabilities and Stockholders’ Equity | | | | | | | | |
| Noninterest-bearing demand deposits | | $ | 5,337,677 |
| $ | 5,039,336 |
| $ | 298,341 |
| $ | 5,272,685 |
| $ | 5,562,466 |
| $ | 4,657,261 |
| $ | 680,416 |
|
| Interest-bearing deposits | | 16,410,035 |
| 15,253,514 |
| 1,156,521 |
| 15,412,775 |
| 15,445,199 |
| 15,901,134 |
| 508,901 |
|
| Total deposits | | 21,747,712 |
| 20,292,850 |
| 1,454,862 |
| 20,685,460 |
| 21,007,665 |
| 20,558,395 |
| 1,189,317 |
|
| Federal funds purchased and securities sold under agreements to repurchase | | 698,772 |
| 509,150 |
| 189,622 |
| 583,247 |
| 431,438 |
| 702,569 |
| (3,797 | ) |
| Other short-term funding | | 541,321 |
| 1,402,407 |
| (861,086 | ) | 834,161 |
| 402,978 |
| 319,766 |
| 221,555 |
|
| Long-term funding | | 2,761,635 |
| 3,511,475 |
| (749,840 | ) | 2,861,316 |
| 2,676,164 |
| 2,676,065 |
| 85,570 |
|
| Trading liabilities | | 62,301 |
| 79,466 |
| (17,165 | ) | 55,223 |
| 33,430 |
| 45,817 |
| 16,484 |
|
| Accrued expenses and other liabilities | | 243,908 |
| 213,204 |
| 30,704 |
| 176,962 |
| 222,914 |
| 207,357 |
| 36,551 |
|
| Total liabilities | | 26,055,649 |
| 26,008,552 |
| 47,097 |
| 25,196,369 |
| 24,774,589 |
| 24,509,969 |
| 1,545,680 |
|
| Stockholders’ Equity | | | | | | | | |
| Preferred equity | | 159,929 |
| 120,201 |
| 39,728 |
| 120,347 |
| 121,379 |
| 121,379 |
| 38,550 |
|
| Common equity: | | | | | | | | |
| Common stock | | 1,630 |
| 1,630 |
| — |
| 1,630 |
| 1,642 |
| 1,642 |
| (12 | ) |
| Surplus | | 1,459,161 |
| 1,453,285 |
| 5,876 |
| 1,447,368 |
| 1,458,522 |
| 1,455,034 |
| 4,127 |
|
| Retained earnings | | 1,662,778 |
| 1,629,915 |
| 32,863 |
| 1,599,835 |
| 1,593,239 |
| 1,570,199 |
| 92,579 |
|
| Accumulated other comprehensive income (loss) | | (1,254 | ) | 13,453 |
| (14,707 | ) | 2,167 |
| (32,616 | ) | 15,376 |
| (16,630 | ) |
| Treasury stock, at cost | | (185,129 | ) | (188,337 | ) | 3,208 |
| (188,849 | ) | (204,920 | ) | (209,833 | ) | 24,704 |
|
| Total common equity | | 2,937,186 |
| 2,909,946 |
| 27,240 |
| 2,862,151 |
| 2,815,867 |
| 2,832,418 |
| 104,768 |
|
| Total stockholders’ equity | | 3,097,115 |
| 3,030,147 |
| 66,968 |
| 2,982,498 |
| 2,937,246 |
| 2,953,797 |
| 143,318 |
|
| Total liabilities and stockholders’ equity | | $ | 29,152,764 |
| $ | 29,038,699 |
| $ | 114,065 |
| $ | 28,178,867 |
| $ | 27,711,835 |
| $ | 27,463,766 |
| $ | 1,688,998 |
|
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited) | | | | | | | | | | | | |
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| | | | | Comp Qtr | | YTD | | YTD | | Comp YTD |
| (in thousands, except per share data) | | 3Q16 | | 3Q15 | | $ Change | | % Change | | Sep 2016 | | Sep 2015 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 167,350 |
| | $ | 155,663 |
| | $ | 11,687 |
| | 8 | % | | $ | 490,065 |
| | $ | 460,025 |
| | $ | 30,040 |
| | 7 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | |
| Taxable | | 22,948 |
| | 24,937 |
| | (1,989 | ) | | (8 | )% | | 72,734 |
| | 73,897 |
| | (1,163 | ) | | (2 | )% |
| Tax-exempt | | 8,141 |
| | 7,917 |
| | 224 |
| | 3 | % | | 23,865 |
| | 23,369 |
| | 496 |
| | 2 | % |
| Other interest | | 1,064 |
| | 1,489 |
| | (425 | ) | | (29 | )% | | 3,449 |
| | 4,952 |
| | (1,503 | ) | | (30 | )% |
| Total interest income | | 199,503 |
| | 190,006 |
| | 9,497 |
| | 5 | % | | 590,113 |
| | 562,243 |
| | 27,870 |
| | 5 | % |
| Interest Expense | | | | | | | | | | | | | | | | |
| Interest on deposits | | 13,118 |
| | 8,521 |
| | 4,597 |
| | 54 | % | | 36,562 |
| | 24,281 |
| | 12,281 |
| | 51 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 326 |
| | 248 |
| | 78 |
| | 31 | % | | 1,000 |
| | 714 |
| | 286 |
| | 40 | % |
| Interest on other short-term funding | | 296 |
| | 83 |
| | 213 |
| | 257 | % | | 1,656 |
| | 279 |
| | 1,377 |
| | 494 | % |
| Interest on long-term funding | | 7,229 |
| | 10,645 |
| | (3,416 | ) | | (32 | )% | | 23,657 |
| | 32,159 |
| | (8,502 | ) | | (26 | )% |
| Total interest expense | | 20,969 |
| | 19,497 |
| | 1,472 |
| | 8 | % | | 62,875 |
| | 57,433 |
| | 5,442 |
| | 9 | % |
| Net Interest Income | | 178,534 |
| | 170,509 |
| | 8,025 |
| | 5 | % | | 527,238 |
| | 504,810 |
| | 22,428 |
| | 4 | % |
| Provision for credit losses | | 21,000 |
| | 8,000 |
| | 13,000 |
| | 163 | % | | 55,000 |
| | 17,500 |
| | 37,500 |
| | 214 | % |
| Net interest income after provision for credit losses | | 157,534 |
| | 162,509 |
| | (4,975 | ) | | (3 | )% | | 472,238 |
| | 487,310 |
| | (15,072 | ) | | (3 | )% |
| Noninterest Income | | | | | | | | | | | | | | | | |
| Trust service fees | | 11,700 |
| | 12,273 |
| | (573 | ) | | (5 | )% | | 34,656 |
| | 36,875 |
| | (2,219 | ) | | (6 | )% |
| Service charges on deposit accounts | | 17,445 |
| | 17,385 |
| | 60 |
| | — | % | | 50,162 |
| | 48,894 |
| | 1,268 |
| | 3 | % |
| Card-based and other nondeposit fees | | 12,777 |
| | 12,618 |
| | 159 |
| | 1 | % | | 37,485 |
| | 38,631 |
| | (1,146 | ) | | (3 | )% |
| Insurance commissions | | 19,431 |
| | 17,561 |
| | 1,870 |
| | 11 | % | | 62,818 |
| | 57,366 |
| | 5,452 |
| | 10 | % |
| Brokerage and annuity commissions | | 4,155 |
| | 3,809 |
| | 346 |
| | 9 | % | | 12,047 |
| | 11,684 |
| | 363 |
| | 3 | % |
| Mortgage banking, net | | 18,291 |
| | 6,643 |
| | 11,648 |
| | 175 | % | | 26,562 |
| | 23,992 |
| | 2,570 |
| | 11 | % |
| Capital market fees, net | | 7,012 |
| | 2,170 |
| | 4,842 |
| | 223 | % | | 14,343 |
| | 7,329 |
| | 7,014 |
| | 96 | % |
| Bank owned life insurance income | | 3,290 |
| | 2,448 |
| | 842 |
| | 34 | % | | 11,033 |
| | 7,704 |
| | 3,329 |
| | 43 | % |
| Asset gains (losses), net | | (1,034 | ) | | 244 |
| | (1,278 | ) | | (524 | )% | | (853 | ) | | 2,931 |
| | (3,784 | ) | | (129 | )% |
| Investment securities gains (losses), net | | (13 | ) | | 2,796 |
| | (2,809 | ) | | (100 | )% | | 6,201 |
| | 4,038 |
| | 2,163 |
| | 54 | % |
| Other | | 2,180 |
| | 2,118 |
| | 62 |
| | 3 | % | | 6,140 |
| | 6,916 |
| | (776 | ) | | (11 | )% |
| Total noninterest income | | 95,234 |
| | 80,065 |
| | 15,169 |
| | 19 | % | | 260,594 |
| | 246,360 |
| | 14,234 |
| | 6 | % |
| Noninterest Expense | | | | | | | | | | | | | | | | |
| Personnel expense | | 103,819 |
| | 101,134 |
| | 2,685 |
| | 3 | % | | 307,346 |
| | 304,272 |
| | 3,074 |
| | 1 | % |
| Occupancy | | 15,362 |
| | 14,187 |
| | 1,175 |
| | 8 | % | | 42,379 |
| | 46,178 |
| | (3,799 | ) | | (8 | )% |
| Equipment | | 5,319 |
| | 6,003 |
| | (684 | ) | | (11 | )% | | 16,161 |
| | 17,514 |
| | (1,353 | ) | | (8 | )% |
| Technology | | 14,173 |
| | 14,748 |
| | (575 | ) | | (4 | )% | | 42,887 |
| | 46,660 |
| | (3,773 | ) | | (8 | )% |
| Business development and advertising | | 5,251 |
| | 5,964 |
| | (713 | ) | | (12 | )% | | 20,053 |
| | 18,120 |
| | 1,933 |
| | 11 | % |
| Other intangible amortization | | 525 |
| | 885 |
| | (360 | ) | | (41 | )% | | 1,568 |
| | 2,574 |
| | (1,006 | ) | | (39 | )% |
| Loan expense | | 3,535 |
| | 3,305 |
| | 230 |
| | 7 | % | | 10,198 |
| | 9,982 |
| | 216 |
| | 2 | % |
| Legal and professional fees | | 4,804 |
| | 4,207 |
| | 597 |
| | 14 | % | | 14,685 |
| | 13,089 |
| | 1,596 |
| | 12 | % |
| Foreclosure / OREO expense, net | | 960 |
| | 645 |
| | 315 |
| | 49 | % | | 4,167 |
| | 3,071 |
| | 1,096 |
| | 36 | % |
| FDIC expense | | 9,000 |
| | 6,000 |
| | 3,000 |
| | 50 | % | | 25,500 |
| | 18,500 |
| | 7,000 |
| | 38 | % |
| Other | | 12,566 |
| | 14,507 |
| | (1,941 | ) | | (13 | )% | | 38,701 |
| | 42,394 |
| | (3,693 | ) | | (9 | )% |
| Total noninterest expense | | 175,314 |
| | 171,585 |
| | 3,729 |
| | 2 | % | | 523,645 |
| | 522,354 |
| | 1,291 |
| | — | % |
| Income before income taxes | | 77,454 |
| | 70,989 |
| | 6,465 |
| | 9 | % | | 209,187 |
| | 211,316 |
| | (2,129 | ) | | (1 | )% |
| Income tax expense | | 23,638 |
| | 21,551 |
| | 2,087 |
| | 10 | % | | 63,746 |
| | 65,806 |
| | (2,060 | ) | | (3 | )% |
| Net income | | 53,816 |
| | 49,438 |
| | 4,378 |
| | 9 | % | | 145,441 |
| | 145,510 |
| | (69 | ) | | — | % |
| Preferred stock dividends | | 2,188 |
| | 2,184 |
| | 4 |
| | — | % | | 6,555 |
| | 4,957 |
| | 1,598 |
| | 32 | % |
| Net income available to common equity | | $ | 51,628 |
| | $ | 47,254 |
| | $ | 4,374 |
| | 9 | % | | $ | 138,886 |
| | $ | 140,553 |
| | $ | (1,667 | ) | | (1 | )% |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.34 |
| | $ | 0.31 |
| | $ | 0.03 |
| | 10 | % | | $ | 0.92 |
| | $ | 0.93 |
| | $ | (0.01 | ) | | (1 | )% |
| Diluted | | $ | 0.34 |
| | $ | 0.31 |
| | $ | 0.03 |
| | 10 | % | | $ | 0.92 |
| | $ | 0.92 |
| | $ | — |
| | — | % |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | |
| Basic | | 148,708 |
| | 148,614 |
| | 94 |
| | — | % | | 148,607 |
| | 149,524 |
| | (917 | ) | | (1 | )% |
| Diluted | | 149,973 |
| | 149,799 |
| | 174 |
| | — | % | | 149,645 |
| | 150,704 |
| | (1,059 | ) | | (1 | )% |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Consolidated Statements of Income (Unaudited)—Quarterly Trend |
| | | | | | | Seql Qtr | | | | | | | | Comp Qtr |
| (in thousands, except per share data) | | 3Q16 | | 2Q16 | | $ Change | | % Change | | 1Q16 | | 4Q15 | | 3Q15 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 167,350 |
| | $ | 163,059 |
| | $ | 4,291 |
| | 3 | % | | $ | 159,656 |
| | $ | 155,602 |
| | $ | 155,663 |
| | $ | 11,687 |
| | 8 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | | | |
| Taxable | | 22,948 |
| | 24,270 |
| | (1,322 | ) | | (5 | )% | | 25,516 |
| | 26,395 |
| | 24,937 |
| | (1,989 | ) | | (8 | )% |
| Tax-exempt | | 8,141 |
| | 7,894 |
| | 247 |
| | 3 | % | | 7,830 |
| | 7,783 |
| | 7,917 |
| | 224 |
| | 3 | % |
| Other interest | | 1,064 |
| | 1,318 |
| | (254 | ) | | (19 | )% | | 1,067 |
| | 1,639 |
| | 1,489 |
| | (425 | ) | | (29 | )% |
| Total interest income | | 199,503 |
| | 196,541 |
| | 2,962 |
| | 2 | % | | 194,069 |
| | 191,419 |
| | 190,006 |
| | 9,497 |
| | 5 | % |
| Interest Expense | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | 13,118 |
| | 11,678 |
| | 1,440 |
| | 12 | % | | 11,766 |
| | 8,844 |
| | 8,521 |
| | 4,597 |
| | 54 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 326 |
| | 378 |
| | (52 | ) | | (14 | )% | | 296 |
| | 229 |
| | 248 |
| | 78 |
| | 31 | % |
| Interest on other short-term funding | | 296 |
| | 845 |
| | (549 | ) | | (65 | )% | | 515 |
| | 186 |
| | 83 |
| | 213 |
| | 257 | % |
| Interest on long-term funding | | 7,229 |
| | 6,923 |
| | 306 |
| | 4 | % | | 9,505 |
| | 10,692 |
| | 10,645 |
| | (3,416 | ) | | (32 | )% |
| Total interest expense | | 20,969 |
| | 19,824 |
| | 1,145 |
| | 6 | % | | 22,082 |
| | 19,951 |
| | 19,497 |
| | 1,472 |
| | 8 | % |
| Net Interest Income | | 178,534 |
| | 176,717 |
| | 1,817 |
| | 1 | % | | 171,987 |
| | 171,468 |
| | 170,509 |
| | 8,025 |
| | 5 | % |
| Provision for credit losses | | 21,000 |
| | 14,000 |
| | 7,000 |
| | 50 | % | | 20,000 |
| | 20,000 |
| | 8,000 |
| | 13,000 |
| | 163 | % |
| Net interest income after provision for credit losses | | 157,534 |
| | 162,717 |
| | (5,183 | ) | | (3 | )% | | 151,987 |
| | 151,468 |
| | 162,509 |
| | (4,975 | ) | | (3 | )% |
| Noninterest Income | | | | | | | | | | | | | | | | | | |
| Trust service fees | | 11,700 |
| | 11,509 |
| | 191 |
| | 2 | % | | 11,447 |
| | 11,965 |
| | 12,273 |
| | (573 | ) | | (5 | )% |
| Service charges on deposit accounts | | 17,445 |
| | 16,444 |
| | 1,001 |
| | 6 | % | | 16,273 |
| | 16,577 |
| | 17,385 |
| | 60 |
| | — | % |
| Card-based and other nondeposit fees | | 12,777 |
| | 12,717 |
| | 60 |
| | — | % | | 11,991 |
| | 12,694 |
| | 12,618 |
| | 159 |
| | 1 | % |
| Insurance commissions | | 19,431 |
| | 22,005 |
| | (2,574 | ) | | (12 | )% | | 21,382 |
| | 17,997 |
| | 17,561 |
| | 1,870 |
| | 11 | % |
| Brokerage and annuity commissions | | 4,155 |
| | 4,098 |
| | 57 |
| | 1 | % | | 3,794 |
| | 3,694 |
| | 3,809 |
| | 346 |
| | 9 | % |
| Mortgage banking, net | | 18,291 |
| | 4,067 |
| | 14,224 |
| | 350 | % | | 4,204 |
| | 8,271 |
| | 6,643 |
| | 11,648 |
| | 175 | % |
| Capital market fees, net | | 7,012 |
| | 3,793 |
| | 3,219 |
| | 85 | % | | 3,538 |
| | 3,423 |
| | 2,170 |
| | 4,842 |
| | 223 | % |
| Bank owned life insurance income | | 3,290 |
| | 2,973 |
| | 317 |
| | 11 | % | | 4,770 |
| | 2,092 |
| | 2,448 |
| | 842 |
| | 34 | % |
| Asset gains (losses), net | | (1,034 | ) | | (343 | ) | | (691 | ) | | 201 | % | | 524 |
| | (391 | ) | | 244 |
| | (1,278 | ) | | (524 | )% |
| Investment securities gains (losses), net | | (13 | ) | | 3,116 |
| | (3,129 | ) | | (100 | )% | | 3,098 |
| | 4,095 |
| | 2,796 |
| | (2,809 | ) | | (100 | )% |
| Other | | 2,180 |
| | 1,789 |
| | 391 |
| | 22 | % | | 2,171 |
| | 2,580 |
| | 2,118 |
| | 62 |
| | 3 | % |
| Total noninterest income | | 95,234 |
| | 82,168 |
| | 13,066 |
| | 16 | % | | 83,192 |
| | 82,997 |
| | 80,065 |
| | 15,169 |
| | 19 | % |
| Noninterest Expense | | | | | | | | | | | | | | | | | | |
| Personnel expense | | 103,819 |
| | 102,129 |
| | 1,690 |
| | 2 | % | | 101,398 |
| | 100,469 |
| | 101,134 |
| | 2,685 |
| | 3 | % |
| Occupancy | | 15,362 |
| | 13,215 |
| | 2,147 |
| | 16 | % | | 13,802 |
| | 14,718 |
| | 14,187 |
| | 1,175 |
| | 8 | % |
| Equipment | | 5,319 |
| | 5,396 |
| | (77 | ) | | (1 | )% | | 5,446 |
| | 5,695 |
| | 6,003 |
| | (684 | ) | | (11 | )% |
| Technology | | 14,173 |
| | 14,450 |
| | (277 | ) | | (2 | )% | | 14,264 |
| | 13,953 |
| | 14,748 |
| | (575 | ) | | (4 | )% |
| Business development and advertising | | 5,251 |
| | 6,591 |
| | (1,340 | ) | | (20 | )% | | 8,211 |
| | 7,652 |
| | 5,964 |
| | (713 | ) | | (12 | )% |
| Other intangible amortization | | 525 |
| | 539 |
| | (14 | ) | | (3 | )% | | 504 |
| | 520 |
| | 885 |
| | (360 | ) | | (41 | )% |
| Loan expense | | 3,535 |
| | 3,442 |
| | 93 |
| | 3 | % | | 3,221 |
| | 4,120 |
| | 3,305 |
| | 230 |
| | 7 | % |
| Legal and professional fees | | 4,804 |
| | 4,856 |
| | (52 | ) | | (1 | )% | | 5,025 |
| | 3,963 |
| | 4,207 |
| | 597 |
| | 14 | % |
| Foreclosure / OREO expense, net | | 960 |
| | 1,330 |
| | (370 | ) | | (28 | )% | | 1,877 |
| | 2,371 |
| | 645 |
| | 315 |
| | 49 | % |
| FDIC expense | | 9,000 |
| | 8,750 |
| | 250 |
| | 3 | % | | 7,750 |
| | 7,500 |
| | 6,000 |
| | 3,000 |
| | 50 | % |
| Other | | 12,566 |
| | 13,662 |
| | (1,096 | ) | | (8 | )% | | 12,473 |
| | 15,032 |
| | 14,507 |
| | (1,941 | ) | | (13 | )% |
| Total noninterest expense | | 175,314 |
| | 174,360 |
| | 954 |
| | 1 | % | | 173,971 |
| | 175,993 |
| | 171,585 |
| | 3,729 |
| | 2 | % |
| Income before income taxes | | 77,454 |
| | 70,525 |
| | 6,929 |
| | 10 | % | | 61,208 |
| | 58,472 |
| | 70,989 |
| | 6,465 |
| | 9 | % |
| Income tax expense | | 23,638 |
| | 21,434 |
| | 2,204 |
| | 10 | % | | 18,674 |
| | 15,681 |
| | 21,551 |
| | 2,087 |
| | 10 | % |
| Net income | | 53,816 |
| | 49,091 |
| | 4,725 |
| | 10 | % | | 42,534 |
| | 42,791 |
| | 49,438 |
| | 4,378 |
| | 9 | % |
| Preferred stock dividends | | 2,188 |
| | 2,169 |
| | 19 |
| | 1 | % | | 2,198 |
| | 2,198 |
| | 2,184 |
| | 4 |
| | — | % |
| Net income available to common equity | | $ | 51,628 |
| | $ | 46,922 |
| | $ | 4,706 |
| | 10 | % | | $ | 40,336 |
| | $ | 40,593 |
| | $ | 47,254 |
| | $ | 4,374 |
| | 9 | % |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.34 |
| | $ | 0.31 |
| | $ | 0.03 |
| | 10 | % | | $ | 0.27 |
| | $ | 0.27 |
| | $ | 0.31 |
| | $ | 0.03 |
| | 10 | % |
| Diluted | | $ | 0.34 |
| | $ | 0.31 |
| | $ | 0.03 |
| | 10 | % | | $ | 0.27 |
| | $ | 0.27 |
| | $ | 0.31 |
| | $ | 0.03 |
| | 10 | % |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | | | |
| Basic | | 148,708 |
| | 148,511 |
| | 197 |
| | — | % | | 148,601 |
| | 148,834 |
| | 148,614 |
| | 94 |
| | — | % |
| Diluted | | 149,973 |
| | 149,530 |
| | 443 |
| | — | % | | 149,454 |
| | 150,163 |
| | 149,799 |
| | 174 |
| | — | % |
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Quarterly Information | | | | | | | | |
| ($ in millions, except share and per share, full time equivalent employee data and branch count) | | YTD
Sep 2016 | YTD
Sep 2015 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 |
| Per Common Share Data | | | | | | | | |
| Dividends | | $ | 0.33 |
| $ | 0.30 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.10 |
|
| Market value: | | | | | | | | |
| High | | 19.91 |
| 20.84 |
| 19.91 |
| 18.84 |
| 18.79 |
| 20.61 |
| 20.55 |
|
| Low | | 15.48 |
| 16.62 |
| 16.49 |
| 15.84 |
| 15.48 |
| 17.98 |
| 17.17 |
|
| Close | | 19.59 |
| 17.97 |
| 19.59 |
| 17.15 |
| 17.94 |
| 18.75 |
| 17.97 |
|
| Book value | | 19.42 |
| 18.77 |
| 19.42 |
| 19.27 |
| 18.96 |
| 18.62 |
| 18.77 |
|
| Tangible book value / share | | $ | 12.89 |
| $ | 12.23 |
| $ | 12.89 |
| $ | 12.72 |
| $ | 12.41 |
| $ | 12.10 |
| $ | 12.23 |
|
| Performance Ratios (annualized) | | | | | | | | |
| Return on average assets | | 0.68 | % | 0.72 | % | 0.74 | % | 0.69 | % | 0.62 | % | 0.62 | % | 0.72 | % |
| Effective tax rate | | 30.47 | % | 31.14 | % | 30.52 | % | 30.39 | % | 30.51 | % | 26.82 | % | 30.36 | % |
Dividend payout ratio(1) | | 35.87 | % | 32.26 | % | 32.35 | % | 35.48 | % | 40.74 | % | 40.74 | % | 32.26 | % |
| Selected Trend Information | | | | | | | | |
| Average full time equivalent employees | | 4,422 |
| 4,436 |
| 4,477 |
| 4,415 |
| 4,374 |
| 4,378 |
| 4,421 |
|
| Branch count | | | | 217 |
| 215 |
| 215 |
| 215 |
| 225 |
|
| Trust assets under management, at market value | | | | $ | 8,179 |
| $ | 7,944 |
| $ | 7,844 |
| $ | 7,729 |
| $ | 7,626 |
|
| Mortgage loans originated for sale during period | | $ | 984 |
| $ | 911 |
| $ | 466 |
| $ | 324 |
| $ | 194 |
| $ | 317 |
| $ | 292 |
|
| Mortgage portfolio serviced for others | | | | $ | 8,011 |
| $ | 7,776 |
| $ | 7,877 |
| $ | 7,915 |
| $ | 7,907 |
|
| Mortgage servicing rights, net / mortgage portfolio serviced for others | | | | 0.73 | % | 0.74 | % | 0.75 | % | 0.77 | % | 0.78 | % |
| Shares outstanding, end of period | | | | 151,243 |
| 151,036 |
| 150,994 |
| 151,239 |
| 150,928 |
|
| Selected Quarterly Ratios | | | | | | | | |
| Loans / deposits | | | | 91.25 | % | 97.65 | % | 92.95 | % | 89.08 | % | 90.11 | % |
| Stockholders’ equity / assets | | | | 10.62 | % | 10.43 | % | 10.58 | % | 10.60 | % | 10.76 | % |
Risk-based Capital (2) (3) | | | | | | | | |
| Total risk-weighted assets | | | | $ | 21,268 |
| $ | 21,168 |
| $ | 20,454 |
| $ | 19,930 |
| $ | 19,866 |
|
| Common equity Tier 1 | | | | $ | 1,984 |
| $ | 1,941 |
| $ | 1,903 |
| $ | 1,898 |
| $ | 1,865 |
|
| Common equity Tier 1 capital ratio | | | | 9.33 | % | 9.17 | % | 9.30 | % | 9.52 | % | 9.39 | % |
| Tier 1 capital ratio | | | | 10.08 | % | 9.73 | % | 9.88 | % | 10.12 | % | 9.98 | % |
| Total capital ratio | | | | 12.50 | % | 12.16 | % | 12.35 | % | 12.62 | % | 12.49 | % |
| Tier 1 leverage ratio | | | | 7.66 | % | 7.43 | % | 7.55 | % | 7.60 | % | 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) | September 30, 2016 data is estimated. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information | | | | | | |
| (in thousands) | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | | $ | 267,780 |
| $ | 277,370 |
| (3 | )% | | $ | 274,264 |
| $ | 262,536 |
| $ | 261,538 |
| 2 | % |
| Provision for loan losses | | 20,000 |
| 11,000 |
| 82 | % | | 20,000 |
| 19,500 |
| 9,000 |
| 122 | % |
| Charge offs | | (28,964 | ) | (24,621 | ) | 18 | % | | (21,245 | ) | (12,741 | ) | (11,732 | ) | 147 | % |
| Recoveries | | 10,724 |
| 4,031 |
| 166 | % | | 4,351 |
| 4,969 |
| 3,730 |
| 188 | % |
| Net charge offs | | (18,240 | ) | (20,590 | ) | (11 | )% | | (16,894 | ) | (7,772 | ) | (8,002 | ) | 128 | % |
| Balance at end of period | | $ | 269,540 |
| $ | 267,780 |
| 1 | % | | $ | 277,370 |
| $ | 274,264 |
| $ | 262,536 |
| 3 | % |
| Allowance for Unfunded Commitments | | | | | | | | | |
| Balance at beginning of period | | $ | 27,400 |
| $ | 24,400 |
| 12 | % | | $ | 24,400 |
| $ | 23,900 |
| $ | 24,900 |
| 10 | % |
| Provision for unfunded commitments | | 1,000 |
| 3,000 |
| (67 | )% | | — |
| 500 |
| (1,000 | ) | (200 | )% |
| Balance at end of period | | $ | 28,400 |
| $ | 27,400 |
| 4 | % | | $ | 24,400 |
| $ | 24,400 |
| $ | 23,900 |
| 19 | % |
| Allowance for credit losses | | $ | 297,940 |
| $ | 295,180 |
| 1 | % | | $ | 301,770 |
| $ | 298,664 |
| $ | 286,436 |
| 4 | % |
| Provision for credit losses | | $ | 21,000 |
| $ | 14,000 |
| 50 | % | | $ | 20,000 |
| $ | 20,000 |
| $ | 8,000 |
| 163 | % |
| Net Charge Offs | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | (16,407 | ) | $ | (18,564 | ) | (12 | )% | | $ | (14,936 | ) | $ | (4,586 | ) | $ | (4,709 | ) | 248 | % |
| Commercial real estate—owner occupied | | (154 | ) | (20 | ) | 670 | % | | (43 | ) | (291 | ) | 504 |
| (131 | )% |
| Commercial and business lending | | (16,561 | ) | (18,584 | ) | (11 | )% | | (14,979 | ) | (4,877 | ) | (4,205 | ) | 294 | % |
| Commercial real estate—investor | | (564 | ) | (560 | ) | 1 | % | | 1,239 |
| (665 | ) | (496 | ) | 14 | % |
| Real estate construction | | (22 | ) | (219 | ) | (90 | )% | | (28 | ) | 140 |
| (38 | ) | (42 | )% |
| Commercial real estate lending | | (586 | ) | (779 | ) | (25 | )% | | 1,211 |
| (525 | ) | (534 | ) | 10 | % |
| Total commercial | | (17,147 | ) | (19,363 | ) | (11 | )% | | (13,768 | ) | (5,402 | ) | (4,739 | ) | 262 | % |
| Residential mortgage | | (540 | ) | (757 | ) | (29 | )% | | (1,232 | ) | (714 | ) | (1,562 | ) | (65 | )% |
| Home equity revolving lines of credit | | 36 |
| 275 |
| (87 | )% | | (902 | ) | (294 | ) | (533 | ) | (107 | )% |
| Home equity loans junior liens | | 89 |
| 42 |
| 112 | % | | (244 | ) | (623 | ) | (358 | ) | (125 | )% |
| Home equity | | 125 |
| 317 |
| (61 | )% | | (1,146 | ) | (917 | ) | (891 | ) | (114 | )% |
| Other consumer | | (678 | ) | (787 | ) | (14 | )% | | (748 | ) | (739 | ) | (810 | ) | (16 | )% |
| Total consumer | | (1,093 | ) | (1,227 | ) | (11 | )% | | (3,126 | ) | (2,370 | ) | (3,263 | ) | (67 | )% |
| Total net charge offs | | $ | (18,240 | ) | $ | (20,590 | ) | (11 | )% | | $ | (16,894 | ) | $ | (7,772 | ) | $ | (8,002 | ) | 128 | % |
| Net Charge Offs to Average Loans (in basis points) * | | Sep 30, 2016 | Jun 30, 2016 | | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | |
| Commercial and industrial | | (98 | ) | (114 | ) | | | (97 | ) | (31 | ) | (31 | ) | |
| Commercial real estate—owner occupied | | (7 | ) | (1 | ) | | | (2 | ) | (12 | ) | 21 |
| |
| Commercial and business lending | | (87 | ) | (100 | ) | | | (85 | ) | (28 | ) | (24 | ) | |
| Commercial real estate—investor | | (6 | ) | (7 | ) | | | 15 |
| (8 | ) | (6 | ) | |
| Real estate construction | | (1 | ) | (7 | ) | | | (1 | ) | 5 |
| (1 | ) | |
| Commercial real estate lending | | (5 | ) | (7 | ) | | | 11 |
| (5 | ) | (5 | ) | |
| Total commercial | | (55 | ) | (64 | ) | | | (48 | ) | (19 | ) | (17 | ) | |
| Residential mortgage | | (3 | ) | (5 | ) | | | (8 | ) | (5 | ) | (11 | ) | |
| Home equity revolving lines of credit | | 2 |
| 13 |
| | | (41 | ) | (13 | ) | (24 | ) | |
| Home equity loans junior liens | | 34 |
| 15 |
| | | (83 | ) | (195 | ) | (104 | ) | |
| Home equity | | 5 |
| 13 |
| | | (46 | ) | (36 | ) | (35 | ) | |
| Other consumer | | (67 | ) | (78 | ) | | | (72 | ) | (69 | ) | (75 | ) | |
| Total consumer | | (6 | ) | (7 | ) | | | (17 | ) | (13 | ) | (18 | ) | |
| Total net charge offs | | (36 | ) | (42 | ) | | | (36 | ) | (17 | ) | (17 | ) | |
| Credit Quality | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Nonaccrual loans | | $ | 289,911 |
| $ | 282,602 |
| 3 | % | | $ | 286,395 |
| $ | 178,258 |
| $ | 147,454 |
| 97 | % |
| Other real estate owned (OREO) | | 14,499 |
| 13,669 |
| 6 | % | | 16,056 |
| 14,569 |
| 13,740 |
| 6 | % |
| Total nonperforming assets | | $ | 304,410 |
| $ | 296,271 |
| 3 | % | | $ | 302,451 |
| $ | 192,827 |
| $ | 161,194 |
| 89 | % |
| Loans 90 or more days past due and still accruing | | $ | 1,511 |
| $ | 1,494 |
| 1 | % | | $ | 1,629 |
| $ | 1,648 |
| $ | 1,484 |
| 2 | % |
| Allowance for loan losses to loans | | 1.36 | % | 1.35 | % | | | 1.44 | % | 1.47 | % | 1.42 | % | |
| Allowance for loan losses to nonaccrual loans | | 92.97 | % | 94.76 | % | | | 96.85 | % | 153.86 | % | 178.05 | % | |
| Nonaccrual loans to total loans | | 1.46 | % | 1.43 | % | | | 1.49 | % | 0.95 | % | 0.80 | % | |
| Nonperforming assets to total loans plus OREO | | 1.53 | % | 1.49 | % | | | 1.57 | % | 1.03 | % | 0.87 | % | |
| Nonperforming assets to total assets | | 1.04 | % | 1.02 | % | | | 1.07 | % | 0.70 | % | 0.59 | % | |
| Year-to-date net charge offs to average loans * | | 0.38 | % | 0.39 | % | | | 0.36 | % | 0.16 | % | 0.16 | % | |
| * Annualized | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information (continued) |
| (in thousands) | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change |
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Nonaccrual loans | | | | | | | | | |
| Commercial and industrial | | $ | 205,902 |
| $ | 193,439 |
| 6 | % | | $ | 197,115 |
| $ | 93,575 |
| $ | 60,184 |
| 242 | % |
| Commercial real estate—owner occupied | | 6,995 |
| 9,635 |
| (27 | )% | | 9,443 |
| 8,049 |
| 13,368 |
| (48 | )% |
| Commercial and business lending | | 212,897 |
| 203,074 |
| 5 | % | | 206,558 |
| 101,624 |
| 73,552 |
| 189 | % |
| Commercial real estate—investor | | 8,028 |
| 11,528 |
| (30 | )% | | 12,330 |
| 8,643 |
| 6,921 |
| 16 | % |
| Real estate construction | | 864 |
| 957 |
| (10 | )% | | 840 |
| 940 |
| 997 |
| (13 | )% |
| Commercial real estate lending | | 8,892 |
| 12,485 |
| (29 | )% | | 13,170 |
| 9,583 |
| 7,918 |
| 12 | % |
| Total commercial | | 221,789 |
| 215,559 |
| 3 | % | | 219,728 |
| 111,207 |
| 81,470 |
| 172 | % |
| Residential mortgage | | 53,475 |
| 52,300 |
| 2 | % | | 52,212 |
| 51,482 |
| 51,957 |
| 3 | % |
| Home equity revolving lines of credit | | 9,462 |
| 8,797 |
| 8 | % | | 8,822 |
| 9,917 |
| 8,060 |
| 17 | % |
| Home equity loans junior liens | | 4,885 |
| 5,566 |
| (12 | )% | | 5,250 |
| 5,327 |
| 5,581 |
| (12 | )% |
| Home equity | | 14,347 |
| 14,363 |
| — | % | | 14,072 |
| 15,244 |
| 13,641 |
| 5 | % |
| Other consumer | | 300 |
| 380 |
| (21 | )% | | 383 |
| 325 |
| 386 |
| (22 | )% |
| Total consumer | | 68,122 |
| 67,043 |
| 2 | % | | 66,667 |
| 67,051 |
| 65,984 |
| 3 | % |
| Total nonaccrual loans | | $ | 289,911 |
| $ | 282,602 |
| 3 | % | | $ | 286,395 |
| $ | 178,258 |
| $ | 147,454 |
| 97 | % |
| | | | | | | | | | |
| Restructured loans (accruing) | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 30,248 |
| $ | 29,179 |
| 4 | % | | $ | 28,908 |
| $ | 29,293 |
| $ | 28,598 |
| 6 | % |
| Commercial real estate—owner occupied | | 7,445 |
| 7,509 |
| (1 | )% | | 7,693 |
| 7,877 |
| 7,343 |
| 1 | % |
| Commercial and business lending | | 37,693 |
| 36,688 |
| 3 | % | | 36,601 |
| 37,170 |
| 35,941 |
| 5 | % |
| Commercial real estate—investor | | 15,352 |
| 20,191 |
| (24 | )% | | 20,993 |
| 21,915 |
| 18,580 |
| (17 | )% |
| Real estate construction | | 365 |
| 372 |
| (2 | )% | | 386 |
| 510 |
| 485 |
| (25 | )% |
| Commercial real estate lending | | 15,717 |
| 20,563 |
| (24 | )% | | 21,379 |
| 22,425 |
| 19,065 |
| (18 | )% |
| Total commercial | | 53,410 |
| 57,251 |
| (7 | )% | | 57,980 |
| 59,595 |
| 55,006 |
| (3 | )% |
| Residential mortgage | | 18,049 |
| 18,314 |
| (1 | )% | | 19,807 |
| 19,870 |
| 20,054 |
| (10 | )% |
| Home equity revolving lines of credit | | 585 |
| 576 |
| 2 | % | | 1,377 |
| 1,332 |
| 1,121 |
| (48 | )% |
| Home equity loans junior liens | | 7,100 |
| 6,379 |
| 11 | % | | 5,540 |
| 5,737 |
| 5,824 |
| 22 | % |
| Home equity | | 7,685 |
| 6,955 |
| 10 | % | | 6,917 |
| 7,069 |
| 6,945 |
| 11 | % |
| Other consumer | | 926 |
| 906 |
| 2 | % | | 893 |
| 829 |
| 804 |
| 15 | % |
| Total consumer | | 26,660 |
| 26,175 |
| 2 | % | | 27,617 |
| 27,768 |
| 27,803 |
| (4 | )% |
| Total restructured loans (accruing) | | $ | 80,070 |
| $ | 83,426 |
| (4 | )% | | $ | 85,597 |
| $ | 87,363 |
| $ | 82,809 |
| (3 | )% |
| Restructured loans included in nonaccrual loans (not included with restructed loans (accruing)) | | $ | 31,758 |
| $ | 34,841 |
| (9 | )% | | $ | 35,232 |
| $ | 37,684 |
| $ | 36,583 |
| (13 | )% |
| | | | | | | | | | |
| Accruing Loans 30-89 Days Past Due | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 950 |
| $ | 2,124 |
| (55 | )% | | $ | 2,901 |
| $ | 1,011 |
| $ | 3,296 |
| (71 | )% |
| Commercial real estate—owner occupied | | 869 |
| 193 |
| 350 | % | | 520 |
| 7,142 |
| 2,018 |
| (57 | )% |
| Commercial and business lending | | 1,819 |
| 2,317 |
| (21 | )% | | 3,421 |
| 8,153 |
| 5,314 |
| (66 | )% |
| Commercial real estate—investor | | 630 |
| 2,715 |
| (77 | )% | | 1,072 |
| 291 |
| 1,218 |
| (48 | )% |
| Real estate construction | | 402 |
| 524 |
| (23 | )% | | 415 |
| 296 |
| 373 |
| 8 | % |
| Commercial real estate lending | | 1,032 |
| 3,239 |
| (68 | )% | | 1,487 |
| 587 |
| 1,591 |
| (35 | )% |
| Total commercial | | 2,851 |
| 5,556 |
| (49 | )% | | 4,908 |
| 8,740 |
| 6,905 |
| (59 | )% |
| Residential mortgage | | 6,697 |
| 7,382 |
| (9 | )% | | 3,594 |
| 4,930 |
| 4,811 |
| 39 | % |
| Home equity revolving lines of credit | | 4,137 |
| 6,075 |
| (32 | )% | | 3,582 |
| 5,559 |
| 6,142 |
| (33 | )% |
| Home equity loans junior liens | | 1,336 |
| 1,655 |
| (19 | )% | | 2,222 |
| 2,360 |
| 2,423 |
| (45 | )% |
| Home equity | | 5,473 |
| 7,730 |
| (29 | )% | | 5,804 |
| 7,919 |
| 8,565 |
| (36 | )% |
| Other consumer | | 2,046 |
| 1,895 |
| 8 | % | | 1,682 |
| 1,870 |
| 1,723 |
| 19 | % |
| Total consumer | | 14,216 |
| 17,007 |
| (16 | )% | | 11,080 |
| 14,719 |
| 15,099 |
| (6 | )% |
| Total accruing loans 30-89 days past due | | $ | 17,067 |
| $ | 22,563 |
| (24 | )% | | $ | 15,988 |
| $ | 23,459 |
| $ | 22,004 |
| (22 | )% |
| | | | | | | | | | |
| Potential Problem Loans | | Sep 30, 2016 | Jun 30, 2016 | Seql Qtr % Change | | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 351,290 |
| $ | 379,818 |
| (8 | )% | | $ | 328,464 |
| $ | 233,130 |
| $ | 192,174 |
| 83 | % |
| Commercial real estate—owner occupied | | 47,387 |
| 45,671 |
| 4 | % | | 41,107 |
| 35,706 |
| 41,466 |
| 14 | % |
| Commercial and business lending | | 398,677 |
| 425,489 |
| (6 | )% | | 369,571 |
| 268,836 |
| 233,640 |
| 71 | % |
| Commercial real estate—investor | | 36,765 |
| 25,081 |
| 47 | % | | 25,385 |
| 25,944 |
| 23,633 |
| 56 | % |
| Real estate construction | | 1,929 |
| 2,117 |
| (9 | )% | | 2,422 |
| 3,919 |
| 2,354 |
| (18 | )% |
| Commercial real estate lending | | 38,694 |
| 27,198 |
| 42 | % | | 27,807 |
| 29,863 |
| 25,987 |
| 49 | % |
| Total commercial | | 437,371 |
| 452,687 |
| (3 | )% | | 397,378 |
| 298,699 |
| 259,627 |
| 68 | % |
| Residential mortgage | | 3,226 |
| 3,953 |
| (18 | )% | | 3,488 |
| 2,796 |
| 3,966 |
| (19 | )% |
| Home equity revolving lines of credit | | 46 |
| 62 |
| (26 | )% | | 48 |
| 48 |
| 141 |
| (67 | )% |
| Home equity loans junior liens | | 32 |
| 32 |
| — | % | | 161 |
| 174 |
| 86 |
| (63 | )% |
| Home equity | | 78 |
| 94 |
| (17 | )% | | 209 |
| 222 |
| 227 |
| (66 | )% |
| Total consumer | | 3,304 |
| 4,047 |
| (18 | )% | | 3,697 |
| 3,018 |
| 4,193 |
| (21 | )% |
| Total potential problem loans | | $ | 440,675 |
| $ | 456,734 |
| (4 | )% | | $ | 401,075 |
| $ | 301,717 |
| $ | 263,820 |
| 67 | % |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis—Fully Tax-Equivalent Basis — Sequential and Comparable Quarter | | | | |
| | Quarter ended, |
| | September 30, 2016 | | June 30, 2016 | | September 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 | $ | 7,577,470 |
| $ | 61,147 |
| 3.21 | % | | $ | 7,474,633 |
| $ | 59,052 |
| 3.18 | % | | $ | 7,089,664 |
| $ | 55,944 |
| 3.13 | % |
| Commercial real estate lending | 4,855,827 |
| 41,600 |
| 3.41 | % | | 4,654,111 |
| 40,169 |
| 3.47 | % | | 4,260,329 |
| 36,694 |
| 3.42 | % |
| Total commercial | 12,433,297 |
| 102,747 |
| 3.29 | % | | 12,128,744 |
| 99,221 |
| 3.29 | % | | 11,349,993 |
| 92,638 |
| 3.24 | % |
| Residential mortgage | 6,255,264 |
| 49,254 |
| 3.15 | % | | 6,129,924 |
| 48,382 |
| 3.16 | % | | 5,658,253 |
| 47,004 |
| 3.32 | % |
| Retail | 1,364,215 |
| 16,283 |
| 4.77 | % | | 1,383,317 |
| 16,414 |
| 4.75 | % | | 1,444,503 |
| 16,913 |
| 4.67 | % |
| Total loans | 20,052,776 |
| 168,284 |
| 3.35 | % | | 19,641,985 |
| 164,017 |
| 3.35 | % | | 18,452,749 |
| 156,555 |
| 3.38 | % |
| Investment securities: | | | | | | | | | | | |
| Taxable | 4,859,750 |
| 22,948 |
| 1.89 | % | | 4,967,437 |
| 24,270 |
| 1.95 | % | | 4,968,609 |
| 24,937 |
| 2.01 | % |
Tax-exempt(1) | 1,119,873 |
| 12,456 |
| 4.45 | % | | 1,064,252 |
| 12,077 |
| 4.54 | % | | 997,489 |
| 12,112 |
| 4.86 | % |
| Other short-term investments | 401,764 |
| 1,064 |
| 1.06 | % | | 294,375 |
| 1,318 |
| 1.80 | % | | 415,496 |
| 1,489 |
| 1.43 | % |
| Investments and other | 6,381,387 |
| 36,468 |
| 2.29 | % | | 6,326,064 |
| 37,665 |
| 2.38 | % | | 6,381,594 |
| 38,538 |
| 2.42 | % |
| Total earning assets | 26,434,163 |
| $ | 204,752 |
| 3.09 | % | | 25,968,049 |
| $ | 201,682 |
| 3.12 | % | | 24,834,343 |
| $ | 195,093 |
| 3.13 | % |
| Other assets, net | 2,534,209 |
| | | | 2,674,427 |
| | | | 2,442,078 |
| | |
| Total assets | $ | 28,968,372 |
| | | | $ | 28,642,476 |
| | | | $ | 27,276,421 |
| | |
| Liabilities and stockholders' equity | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings | $ | 1,448,223 |
| $ | 198 |
| 0.05 | % | | $ | 1,445,020 |
| $ | 228 |
| 0.06 | % | | $ | 1,357,677 |
| $ | 254 |
| 0.07 | % |
| Interest-bearing demand | 4,151,708 |
| 2,937 |
| 0.28 | % | | 3,640,733 |
| 2,144 |
| 0.24 | % | | 3,199,391 |
| 962 |
| 0.12 | % |
| Money market | 9,088,943 |
| 6,956 |
| 0.30 | % | | 8,692,782 |
| 6,309 |
| 0.29 | % | | 9,538,030 |
| 4,350 |
| 0.18 | % |
| Time deposits | 1,553,349 |
| 3,027 |
| 0.78 | % | | 1,540,424 |
| 2,997 |
| 0.78 | % | | 1,624,661 |
| 2,955 |
| 0.72 | % |
| Total interest-bearing deposits | 16,242,223 |
| 13,118 |
| 0.32 | % | | 15,318,959 |
| 11,678 |
| 0.31 | % | | 15,719,759 |
| 8,521 |
| 0.22 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 655,825 |
| 326 |
| 0.20 | % | | 674,360 |
| 378 |
| 0.23 | % | | 649,891 |
| 248 |
| 0.15 | % |
| Other short-term funding | 324,623 |
| 296 |
| 0.36 | % | | 1,209,511 |
| 845 |
| 0.28 | % | | 154,811 |
| 83 |
| 0.21 | % |
| Total short-term funding | 980,448 |
| 622 |
| 0.25 | % | | 1,883,871 |
| 1,223 |
| 0.26 | % | | 804,702 |
| 331 |
| 0.16 | % |
| Long-term funding | 3,256,099 |
| 7,229 |
| 0.89 | % | | 3,052,581 |
| 6,923 |
| 0.91 | % | | 3,021,119 |
| 10,645 |
| 1.41 | % |
| Total short and long-term funding | 4,236,547 |
| 7,851 |
| 0.74 | % | | 4,936,452 |
| 8,146 |
| 0.66 | % | | 3,825,821 |
| 10,976 |
| 1.15 | % |
| Total interest-bearing liabilities | 20,478,770 |
| $ | 20,969 |
| 0.41 | % | | 20,255,411 |
| $ | 19,824 |
| 0.39 | % | | 19,545,580 |
| $ | 19,497 |
| 0.40 | % |
| Noninterest-bearing demand deposits | 5,161,802 |
| | | | 4,969,994 |
| | | | 4,573,840 |
| | |
| Other liabilities | 281,442 |
| | | | 228,027 |
| | | | 237,725 |
| | |
| Stockholders’ equity | 3,046,358 |
| | | | 3,189,044 |
| | | | 2,919,276 |
| | |
| Total liabilities and stockholders’ equity | $ | 28,968,372 |
| | | | $ | 28,642,476 |
| | | | $ | 27,276,421 |
| | |
| Interest rate spread | | | 2.68 | % | | | | 2.73 | % | | | | 2.73 | % |
| Net free funds | | | 0.09 | % | | | | 0.08 | % | | | | 0.09 | % |
| Fully tax-equivalent net interest income and net interest margin | | $ | 183,783 |
| 2.77 | % | | | $ | 181,858 |
| 2.81 | % | | | $ | 175,596 |
| 2.82 | % |
| Fully tax-equivalent adjustment | | 5,249 |
| | | | 5,141 |
| | | | 5,087 |
| |
| Net interest income | | $ | 178,534 |
| | | | $ | 176,717 |
| | | | $ | 170,509 |
| |
| |
| (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 |
| | | Nine months ended September 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 | | $ | 7,391,735 |
| | $ | 177,457 |
| | 3.21 | % | | $ | 7,083,736 |
| | $ | 168,188 |
| | 3.17 | % |
| Commercial real estate lending | | 4,660,538 |
| | 120,758 |
| | 3.46 | % | | 4,171,250 |
| | 108,785 |
| | 3.49 | % |
| Total commercial | | 12,052,273 |
| | 298,215 |
| | 3.30 | % | | 11,254,986 |
| | 276,973 |
| | 3.29 | % |
| Residential mortgage | | 6,102,383 |
| | 145,384 |
| | 3.18 | % | | 5,435,277 |
| | 134,923 |
| | 3.31 | % |
| Retail | | 1,386,416 |
| | 49,337 |
| | 4.75 | % | | 1,464,129 |
| | 50,851 |
| | 4.64 | % |
| Total loans | | 19,541,072 |
| | 492,936 |
| | 3.37 | % | | 18,154,392 |
| | 462,747 |
| | 3.40 | % |
| Investment securities: | | | | | | | | | | | | |
| Taxable | | 4,953,410 |
| | 72,734 |
| | 1.96 | % | | 4,845,424 |
| | 73,897 |
| | 2.03 | % |
Tax-exempt (1) | | 1,076,603 |
| | 36,513 |
| | 4.52 | % | | 963,458 |
| | 35,754 |
| | 4.95 | % |
| Other short-term investments | | 322,424 |
| | 3,449 |
| | 1.43 | % | | 455,485 |
| | 4,952 |
| | 1.45 | % |
| Investments and other | | 6,352,437 |
| | 112,696 |
| | 2.37 | % | | 6,264,367 |
| | 114,603 |
| | 2.44 | % |
| Total earning assets | | 25,893,509 |
| | $ | 605,632 |
| | 3.12 | % | | 24,418,759 |
| | $ | 577,350 |
| | 3.16 | % |
| Other assets, net | | 2,478,574 |
| | | | | | 2,452,790 |
| | | | |
| Total assets | | $ | 28,372,083 |
| | | | | | $ | 26,871,549 |
| | | | |
| Liabilities and stockholders' equity | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | |
| Savings | | $ | 1,420,398 |
| | $ | 662 |
| | 0.06 | % | | $ | 1,329,548 |
| | $ | 751 |
| | 0.08 | % |
| Interest-bearing demand | | 3,672,705 |
| | 7,113 |
| | 0.26 | % | | 3,218,089 |
| | 3,049 |
| | 0.13 | % |
| Money market | | 9,071,388 |
| | 19,709 |
| | 0.29 | % | | 9,100,867 |
| | 12,223 |
| | 0.18 | % |
| Time deposits | | 1,550,693 |
| | 9,078 |
| | 0.78 | % | | 1,616,474 |
| | 8,258 |
| | 0.68 | % |
| Total interest-bearing deposits | | 15,715,184 |
| | 36,562 |
| | 0.31 | % | | 15,264,978 |
| | 24,281 |
| | 0.21 | % |
| Federal funds purchased and securities sold under agreements to repurchase | | 629,976 |
| | 1,000 |
| | 0.21 | % | | 632,714 |
| | 714 |
| | 0.15 | % |
| Other short-term funding | | 769,049 |
| | 1,656 |
| | 0.29 | % | | 170,300 |
| | 279 |
| | 0.22 | % |
| Total short-term funding | | 1,399,025 |
| | 2,656 |
| | 0.25 | % | | 803,014 |
| | 993 |
| | 0.17 | % |
| Long-term funding | | 2,964,807 |
| | 23,657 |
| | 1.06 | % | | 3,273,898 |
| | 32,159 |
| | 1.31 | % |
| Total short and long-term funding | | 4,363,832 |
| | 26,313 |
| | 0.80 | % | | 4,076,912 |
| | 33,152 |
| | 1.08 | % |
| Total interest-bearing liabilities | | 20,079,016 |
| | $ | 62,875 |
| | 0.42 | % | | 19,341,890 |
| | $ | 57,433 |
| | 0.40 | % |
| Noninterest-bearing demand deposits | | 5,043,231 |
| | | | | | 4,397,894 |
| | | | |
| Other liabilities | | 247,624 |
| | | | | | 251,937 |
| | | | |
| Stockholders’ equity | | 3,002,212 |
| | | | | | 2,879,828 |
| | | | |
| Total liabilities and stockholders’ equity | | $ | 28,372,083 |
| | | | | | $ | 26,871,549 |
| | | | |
| Interest rate spread | | | | | | 2.70 | % | | | | | | 2.76 | % |
| Net free funds | | | | | | 0.10 | % | | | | | | 0.08 | % |
| Fully tax-equivalent net interest income and net interest margin | | | | $ | 542,757 |
| | 2.80 | % | | | | $ | 519,917 |
| | 2.84 | % |
| Fully tax-equivalent adjustment | | | | 15,519 |
| | | | | | 15,107 |
| | |
| Net interest income | | | | $ | 527,238 |
| | | | | | $ | 504,810 |
| | |
| |
| (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 | | Sep 30, 2016 | | Jun 30, 2016 | | Seql Qtr % Change | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,721,557 |
| | $ | 6,701,986 |
| | — | % | | $ | 6,511,648 |
| | $ | 6,190,683 |
| | $ | 6,128,080 |
| | 10 | % |
| Commercial real estate—owner occupied | | 892,678 |
| | 921,736 |
| | (3 | )% | | 917,285 |
| | 918,212 |
| | 966,689 |
| | (8 | )% |
| Commercial and business lending | | 7,614,235 |
| | 7,623,722 |
| | — | % | | 7,428,933 |
| | 7,108,895 |
| | 7,094,769 |
| | 7 | % |
| Commercial real estate—investor | | 3,530,370 |
| | 3,495,791 |
| | 1 | % | | 3,276,733 |
| | 3,234,266 |
| | 3,183,352 |
| | 11 | % |
| Real estate construction | | 1,314,431 |
| | 1,285,573 |
| | 2 | % | | 1,184,398 |
| | 1,162,145 |
| | 1,124,280 |
| | 17 | % |
| Commercial real estate lending | | 4,844,801 |
| | 4,781,364 |
| | 1 | % | | 4,461,131 |
| | 4,396,411 |
| | 4,307,632 |
| | 12 | % |
| Total commercial | | 12,459,036 |
| | 12,405,086 |
| | — | % | | 11,890,064 |
| | 11,505,306 |
| | 11,402,401 |
| | 9 | % |
| Residential mortgage | | 6,034,166 |
| | 6,035,720 |
| | — | % | | 5,944,457 |
| | 5,783,267 |
| | 5,682,178 |
| | 6 | % |
| Home equity revolving lines of credit | | 851,382 |
| | 861,311 |
| | (1 | )% | | 867,860 |
| | 883,759 |
| | 883,573 |
| | (4 | )% |
| Home equity loans junior liens | | 100,212 |
| | 107,460 |
| | (7 | )% | | 115,134 |
| | 122,043 |
| | 130,892 |
| | (23 | )% |
| Home equity | | 951,594 |
| | 968,771 |
| | (2 | )% | | 982,994 |
| | 1,005,802 |
| | 1,014,465 |
| | (6 | )% |
| Other consumer | | 399,209 |
| | 405,709 |
| | (2 | )% | | 409,725 |
| | 419,968 |
| | 425,729 |
| | (6 | )% |
| Total consumer | | 7,384,969 |
| | 7,410,200 |
| | — | % | | 7,337,176 |
| | 7,209,037 |
| | 7,122,372 |
| | 4 | % |
| Total loans | | $ | 19,844,005 |
| | $ | 19,815,286 |
| | — | % | | $ | 19,227,240 |
| | $ | 18,714,343 |
| | $ | 18,524,773 |
| | 7 | % |
| | | | | | | | | | | | | | | |
| Period End Deposit and Customer Funding Composition | | Sep 30, 2016 | | Jun 30, 2016 | | Seql Qtr % Change | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,337,677 |
| | $ | 5,039,336 |
| | 6 | % | | $ | 5,272,685 |
| | $ | 5,562,466 |
| | $ | 4,657,261 |
| | 15 | % |
| Savings | | 1,441,187 |
| | 1,451,801 |
| | (1 | )% | | 1,426,951 |
| | 1,334,420 |
| | 1,346,407 |
| | 7 | % |
| Interest-bearing demand | | 4,548,390 |
| | 3,789,138 |
| | 20 | % | | 3,698,941 |
| | 3,445,000 |
| | 3,416,429 |
| | 33 | % |
| Money market | | 8,894,357 |
| | 8,448,543 |
| | 5 | % | | 8,718,841 |
| | 9,102,977 |
| | 9,516,503 |
| | (7 | )% |
| Brokered CDs | | 44,373 |
| | 46,268 |
| | (4 | )% | | 41,440 |
| | 42,443 |
| | 42,689 |
| | 4 | % |
| Other time | | 1,481,728 |
| | 1,517,764 |
| | (2 | )% | | 1,526,602 |
| | 1,520,359 |
| | 1,579,106 |
| | (6 | )% |
| Total deposits | | 21,747,712 |
| | 20,292,850 |
| | 7 | % | | 20,685,460 |
| | 21,007,665 |
| | 20,558,395 |
| | 6 | % |
| Customer funding | | 477,607 |
| | 464,880 |
| | 3 | % | | 508,262 |
| | 383,568 |
| | 524,630 |
| | (9 | )% |
| Total deposits and customer funding | | $ | 22,225,319 |
| | $ | 20,757,730 |
| | 7 | % | | $ | 21,193,722 |
| | $ | 21,391,233 |
| | $ | 21,083,025 |
| | 5 | % |
| Network transaction deposits included above in interest-bearing demand & money market | | $ | 3,730,513 |
| | $ | 3,141,214 |
| | 19 | % | | $ | 3,399,054 |
| | $ | 3,174,911 |
| | $ | 3,207,867 |
| | 16 | % |
| Brokered CDs | | 44,373 |
| | 46,268 |
| | (4 | )% | | 41,440 |
| | 42,443 |
| | 42,689 |
| | 4 | % |
| Total network and brokered funding | | 3,774,886 |
| | 3,187,482 |
| | 18 | % | | 3,440,494 |
| | 3,217,354 |
| | 3,250,556 |
| | 16 | % |
Net customer deposits and funding(1) | | $ | 18,450,433 |
| | $ | 17,570,248 |
| | 5 | % | | $ | 17,753,228 |
| | $ | 18,173,879 |
| | $ | 17,832,469 |
| | 3 | % |
| |
| Quarter Average Loan Composition | | Sep 30, 2016 | | Jun 30, 2016 | | Seql Qtr % Change | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,674,688 |
| | $ | 6,559,613 |
| | 2 | % | | $ | 6,207,458 |
| | $ | 5,947,939 |
| | $ | 6,119,552 |
| | 9 | % |
| Commercial real estate—owner occupied | | 902,782 |
| | 915,020 |
| | (1 | )% | | 913,603 |
| | 944,223 |
| | 970,112 |
| | (7 | )% |
| Commercial and business lending | | 7,577,470 |
| | 7,474,633 |
| | 1 | % | | 7,121,061 |
| | 6,892,162 |
| | 7,089,664 |
| | 7 | % |
| Commercial real estate—investor | | 3,532,861 |
| | 3,448,741 |
| | 2 | % | | 3,298,522 |
| | 3,266,008 |
| | 3,134,454 |
| | 13 | % |
| Real estate construction | | 1,322,966 |
| | 1,205,370 |
| | 10 | % | | 1,171,009 |
| | 1,107,452 |
| | 1,125,875 |
| | 18 | % |
| Commercial real estate lending | | 4,855,827 |
| | 4,654,111 |
| | 4 | % | | 4,469,531 |
| | 4,373,460 |
| | 4,260,329 |
| | 14 | % |
| Total commercial | | 12,433,297 |
| | 12,128,744 |
| | 3 | % | | 11,590,592 |
| | 11,265,622 |
| | 11,349,993 |
| | 10 | % |
| Residential mortgage | | 6,255,264 |
| | 6,129,924 |
| | 2 | % | | 5,920,280 |
| | 5,845,557 |
| | 5,658,253 |
| | 11 | % |
| Home equity revolving lines of credit | | 857,244 |
| | 863,941 |
| | (1 | )% | | 876,820 |
| | 882,599 |
| | 880,660 |
| | (3 | )% |
| Home equity loans junior liens | | 103,790 |
| | 111,372 |
| | (7 | )% | | 118,610 |
| | 126,658 |
| | 136,254 |
| | (24 | )% |
| Home equity | | 961,034 |
| | 975,313 |
| | (1 | )% | | 995,430 |
| | 1,009,257 |
| | 1,016,914 |
| | (5 | )% |
| Other consumer | | 403,181 |
| | 408,004 |
| | (1 | )% | | 416,528 |
| | 422,252 |
| | 427,589 |
| | (6 | )% |
| Total consumer | | 7,619,479 |
| | 7,513,241 |
| | 1 | % | | 7,332,238 |
| | 7,277,066 |
| | 7,102,756 |
| | 7 | % |
| Total loans | | $ | 20,052,776 |
| | $ | 19,641,985 |
| | 2 | % | | $ | 18,922,830 |
| | $ | 18,542,688 |
| | $ | 18,452,749 |
| | 9 | % |
| | | | | | | | | | | | | | | |
| Quarter Average Deposit Composition | | Sep 30, 2016 | | Jun 30, 2016 | | Seql Qtr % Change | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,161,802 |
| | $ | 4,969,994 |
| | 4 | % | | $ | 4,996,596 |
| | $ | 4,967,719 |
| | $ | 4,573,840 |
| | 13 | % |
| Savings | | 1,448,223 |
| | 1,445,020 |
| | — | % | | 1,367,646 |
| | 1,358,141 |
| | 1,357,677 |
| | 7 | % |
| Interest-bearing demand | | 4,151,708 |
| | 3,640,733 |
| | 14 | % | | 3,220,409 |
| | 3,150,628 |
| | 3,199,391 |
| | 30 | % |
| Money market | | 9,088,943 |
| | 8,692,782 |
| | 5 | % | | 9,432,245 |
| | 9,534,551 |
| | 9,538,030 |
| | (5 | )% |
| Time deposits | | 1,553,349 |
| | 1,540,424 |
| | 1 | % | | 1,558,278 |
| | 1,604,864 |
| | 1,624,661 |
| | (4 | )% |
| Total deposits | | $ | 21,404,025 |
| | $ | 20,288,953 |
| | 5 | % | | $ | 20,575,174 |
| | $ | 20,615,903 |
| | $ | 20,293,599 |
| | 5 | % |
| |
| (1) | Total deposits and customer funding excluding total network and brokered funding. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation | | | | | | | |
| ($ in millions) | YTD
Sep 2016 | YTD
Sep 2015 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 |
Tangible Common Equity Reconciliation (1) | | | | | | | |
| Common equity | | | $ | 2,937 |
| $ | 2,910 |
| $ | 2,862 |
| $ | 2,816 |
| $ | 2,832 |
|
| Goodwill and other intangible assets, net | | | (988 | ) | (988 | ) | (989 | ) | (985 | ) | (986 | ) |
| Tangible common equity | | | $ | 1,949 |
| $ | 1,922 |
| $ | 1,873 |
| $ | 1,831 |
| $ | 1,846 |
|
Tangible Assets Reconciliation (1) | | | | | | | |
| Total assets | | | $ | 29,153 |
| $ | 29,039 |
| $ | 28,179 |
| $ | 27,712 |
| $ | 27,464 |
|
| Goodwill and other intangible assets, net | | | (988 | ) | (988 | ) | (989 | ) | (985 | ) | (986 | ) |
| Tangible assets | | | $ | 28,165 |
| $ | 28,051 |
| $ | 27,190 |
| $ | 26,727 |
| $ | 26,478 |
|
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation (1) | | | | | | | |
| Common equity | $ | 2,876 |
| $ | 2,792 |
| $ | 2,911 |
| $ | 2,869 |
| $ | 2,849 |
| $ | 2,819 |
| $ | 2,798 |
|
| Goodwill and other intangible assets, net | (989 | ) | (981 | ) | (988 | ) | (989 | ) | (989 | ) | (985 | ) | (986 | ) |
| Tangible common equity | 1,887 |
| 1,811 |
| 1,923 |
| 1,880 |
| 1,860 |
| 1,834 |
| 1,812 |
|
| Less: Accumulated other comprehensive income / loss | 1 |
| (14 | ) | (3 | ) | 1 |
| 3 |
| 4 |
| (7 | ) |
| Less: Deferred tax assets / deferred tax liabilities, net | 33 |
| 24 |
| 33 |
| 32 |
| 33 |
| 34 |
| 32 |
|
| Average common equity Tier 1 | $ | 1,921 |
| $ | 1,821 |
| $ | 1,953 |
| $ | 1,913 |
| $ | 1,896 |
| $ | 1,872 |
| $ | 1,837 |
|
Selected Trend Information (2) | | | | | | | |
Fee-based revenue (3) | $ | 197 |
| $ | 194 |
| $ | 65 |
| $ | 67 |
| $ | 65 |
| $ | 63 |
| $ | 64 |
|
Total revenue (4) | $ | 788 |
| $ | 751 |
| $ | 274 |
| $ | 259 |
| $ | 255 |
| $ | 254 |
| $ | 251 |
|
Selected Equity and Performance Ratios (1) (5) | | | | | | | |
| Tangible common equity / tangible assets | | | 6.92 | % | 6.85 | % | 6.89 | % | 6.85 | % | 6.97 | % |
| Return on average equity | 6.47 | % | 6.76 | % | 7.03 | % | 6.19 | % | 5.76 | % | 5.77 | % | 6.72 | % |
| Return on average tangible common equity | 9.83 | % | 10.38 | % | 10.68 | % | 10.04 | % | 8.72 | % | 8.78 | % | 10.35 | % |
| Return on average common equity Tier 1 | 9.66 | % | 10.32 | % | 10.52 | % | 9.86 | % | 8.55 | % | 8.60 | % | 10.20 | % |
Efficiency Ratio Reconciliation (6) | | | | | | | |
| Federal Reserve efficiency ratio | 67.51 | % | 69.78 | % | 64.40 | % | 69.34 | % | 69.01 | % | 70.49 | % | 68.85 | % |
| Fully tax-equivalent adjustment | (1.32 | )% | (1.38 | )% | (1.21 | )% | (1.36 | )% | (1.37 | )% | (1.52 | )% | (1.38 | )% |
| Other intangible amortization | (0.20 | )% | (0.34 | )% | (0.19 | )% | (0.21 | )% | (0.20 | )% | (0.21 | )% | (0.36 | )% |
| Fully tax-equivalent efficiency ratio | 65.99 | % | 68.06 | % | 63.00 | % | 67.77 | % | 67.44 | % | 68.76 | % | 67.11 | % |
| |
| (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. |
