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 2016 Earnings of $1.26 per share
Record loan levels and improved operating leverage drive bottom line growth
GREEN BAY, Wis. -- January 19, 2017 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $191 million, or $1.26 per common share for the year ended December 31, 2016. This compares to net income available to common equity of $181 million, or $1.19 per common share for the year ended December 31, 2015. The Company reported earnings of $0.34 per common share for the quarter ended December 31, 2016, compared to $0.27 per common share for the quarter ended December 31, 2015.
“We are pleased to report full year results in line with our guidance. We delivered loan, revenue, and bottom line growth in 2016. We ended the year with over $20 billion of loans, a new high-water mark for us, reflecting 8% annual average loan growth. Our commercial real estate, residential lending, and capital markets businesses, in particular, performed well,” said President and CEO Philip B. Flynn. “We grew earnings throughout the year and finished strong driven by higher revenues in the second half of the year. We improved our efficiency ratio for the fifth consecutive year. With another successful year now behind us, we remain committed to delivering quality solutions for our customers and communities.”
2016 HIGHLIGHTS
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| • | Average loans of $19.7 billion grew $1.4 billion, or 8% from a year ago |
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| • | Total commercial lending accounted for 62% of average loan growth |
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| • | Average deposits of $21.0 billion grew $1.1 billion, or 6% from a year ago |
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| • | Noninterest-bearing demand deposits accounted for 51% of average deposit growth |
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| • | Net interest income of $707 million increased $31 million, or 5% from last year |
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| • | Net interest margin of 2.80% declined from 2.84% in 2015 |
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| • | Provision for credit losses of $70 million increased $33 million from last year |
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| • | Noninterest income of $353 million increased $24 million, or 7% from last year |
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| • | Noninterest expense of $703 million increased $4 million, or 1% from last year |
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| • | During the year, the Company repurchased $20 million, or approximately 1.2 million shares, of common stock at an average cost of $17.10 per share |
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| • | Return on average common equity Tier 1 (CET1) was 9.9% |
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| • | Total dividends per common share of $0.45 were up 10% from last year |
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| • | Capital ratios remain strong with a CET1 ratio of 9.5% at year end |
2016 AND FOURTH QUARTER FINANCIAL RESULTS
Loans
Full year average loans of $19.7 billion were up 8%, or $1.4 billion from 2015.
With respect to full year average balances as compared to 2015:
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| • | Commercial real estate lending was up 12%, or $502 million to $4.7 billion. |
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| • | Consumer lending was up 8%, or $536 million to $7.5 billion. |
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| • | Commercial and business lending was up 5%, or $360 million to $7.4 billion. |
Fourth quarter average loans of $20.0 billion were down $0.1 billion from the third quarter, and were up 8%, or $1.4 billion from the year ago quarter.
With respect to fourth quarter average balances:
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| • | Commercial real estate lending was up 1%, or $59 million from the third quarter to $4.9 billion. Commercial real estate lending was up 12%, or $541 million from the year ago quarter. |
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| • | Consumer lending was up $36 million from the third quarter to $7.7 billion. Consumer lending was up 5%, or $379 million from the year ago quarter. |
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| • | Commercial and business lending was down 2%, or $171 million from the third quarter to $7.4 billion, with the decline primarily driven by seasonally lower line utilization. Commercial and business lending was up 7%, or $515 million from the year ago quarter. |
For the year ended December 31, 2016, total loans of $20.0 billion were up 7%, or $1.3 billion from December 31, 2015, and were up 1%, or $0.2 billion from September 30, 2016.
With respect to period end balances:
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| • | Commercial real estate lending was up 14%, or $611 million from the prior year end to $5.0 billion. Commercial real estate lending was up 3%, or $162 million from the prior quarter end. |
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| • | Consumer lending was up 6%, or $431 million from the prior year end to $7.6 billion. Consumer lending was up 3%, or $255 million from the prior quarter end. |
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| • | Commercial and business lending was up 4%, or $278 million from the prior year end to $7.4 billion. Commercial and business lending was down 3%, or $227 million from the prior quarter end. |
Deposits
Full year average deposits of $21.0 billion were up 6%, or $1.1 billion from 2015.
With respect to full year average balances as compared to 2015:
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| • | Interest-bearing demand deposits were up 18%, or $589 million to $3.8 billion. |
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| • | Noninterest-bearing demand deposits were up 12%, or $565 million to $5.1 billion. |
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| • | Time and savings deposits, combined, were up 1%, or $31 million to $3.0 billion. |
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| • | Money market deposits were down 1%, or $82 million to $9.1 billion. |
Fourth quarter average deposits of $21.7 billion were up 2%, or $0.3 billion from the third quarter, and were up 5%, or $1.1 billion from the year ago quarter.
With respect to fourth quarter average balances:
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| • | Noninterest-bearing demand deposits were up 3%, or $132 million from the third quarter to $5.3 billion, and were up 7%, or $326 million from the year ago quarter. |
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| • | Money market deposits were up 2%, or $207 million from the third quarter to $9.3 billion, and were down 2%, or $238 million from the year ago quarter. |
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| • | Time and savings deposits were up modestly from the third quarter to $3.0 billion. Time and savings deposits, combined, were up 2%, or $49 million from the year ago quarter. |
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| • | Interest-bearing demand deposits were down slightly from the third quarter to $4.1 billion, and were up 31%, or $989 million from the year ago quarter. |
For the year ended December 31, 2016, total deposits of $21.9 billion were up 4%, or $0.9 billion from December 31, 2015, and were up 1%, or $0.1 billion from September 30, 2016.
With respect to period end balances:
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| • | Interest-bearing demand deposits were up 36%, or $1.2 billion from the prior year end to $4.7 billion, and were up 3%, or $139 million from the prior quarter end. |
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| • | Time and savings deposits, combined, were up 5%, or $140 million from the prior year end to $3.0 billion, and were up 2%, or $70 million from the prior quarter end. |
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| • | Noninterest-bearing demand deposits were down 3%, or $170 million from the prior year end to $5.4 billion, and were up 1%, or $55 million from the prior quarter end. |
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| • | Money market deposits were down 4%, or $332 million to $8.8 billion from the prior year end, and were down 1%, or $123 million from the prior quarter end. |
Net Interest Income and Net Interest Margin
Full year net interest income of $707 million was up $31 million, or 5% from 2015. Net interest margin of 2.80% was down 4 basis points from the prior year.
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| • | Interest and fees on loans increased $44 million, or 7% from the prior year. The total loan yield of 3.38% decreased 2 basis points from the prior year. |
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| • | Total interest expense increased $7 million, or 9% from the prior year. The total cost of interest-bearing liabilities of 0.42% increased 2 basis points from the prior year. |
Fourth quarter net interest income of $180 million was up $1.5 million, or 1% from the third quarter, and was up $9 million, or 5% from the year ago quarter. Net interest margin of 2.80% was up 3 basis points from the third quarter.
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| • | Interest and fees on loans increased $2 million, or 1% from the third quarter. The total loan yield of 3.40% increased 5 basis points from the prior quarter and accounted for the majority of the margin expansion in the quarter. |
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| • | Interest expense on deposits increased $1 million, or 5% from the third quarter. The cost of total interest-bearing deposits increased 1 basis point from the prior quarter. |
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| • | Lower investment income was more than offset by lower cost of short and long-term funding for the fourth quarter, driven by noninterest-bearing deposit growth. |
Noninterest Income
Full year total noninterest income of $353 million was up $24 million, or 7% from 2015.
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| • | Capital market fees of $22 million increased significantly from the prior year on higher customer hedging transactions and higher loan syndication activity. |
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| • | Mortgage banking income increased $6 million, or 18% from the prior year primarily attributable to portfolio loan sales. |
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| • | Insurance commissions increased $5 million, or 7% from the prior year. |
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| • | All other noninterest income categories, collectively, increased $5 million from the prior year. |
Noninterest Income cont.
Fourth quarter total noninterest income of $92 million was down $3 million, or 3% from the third quarter, and was up $9 million, or 11% from the year ago quarter.
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| • | Mortgage banking income decreased $7 million in the fourth quarter, principally related to portfolio sales generating $9 million of gross gains in the prior quarter. |
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| • | Investment securities gains increased $3 million in the fourth quarter, and reflected the Company’s continued shift away from Agency MBS investments and net reduced investment positions. |
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| • | All other noninterest income categories, collectively, increased $1 million from the prior quarter. |
Noninterest Expense
Full year noninterest expense of $703 million was up $4 million, or 1% from the prior year.
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| • | Personnel increased $10 million from the prior year, and included severance of $5 million, principally related to the restructuring of the Company's commercial and business lending areas. |
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| • | Year over year increases in FDIC expense, legal and professional fees, and business development and advertising were more than offset by decreases in all other expense categories. |
Fourth quarter total noninterest expense of $179 million was up $4 million, or 2% from the third quarter, and was up $3 million, or 2% from the year ago quarter.
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| • | Personnel expense increased $4 million from the third quarter, and included severance of $3 million, principally related to the restructuring of the Company's commercial and business lending areas. |
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| • | Quarter over quarter decreases in occupancy, foreclosure / OREO expense, and loan expense were offset by increases in all other expense categories. |
Taxes
Full year income tax expense was $87 million and was up $6 million from 2015. The effective tax rate was 30% in 2016 and 2015.
Fourth quarter income tax expense was $24 million with an effective tax rate of 30%, compared to $24 million and 31% in the third quarter, and $16 million and 27% in the year ago quarter.
Credit
Full year provision for credit losses of $70 million was up $33 million from the prior year, principally related to a $35 million increase in net charge offs year over year, primarily related to oil and gas loans.
Fourth quarter provision for credit losses of $15 million was down $6 million from the prior quarter.
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| • | Potential problem loans of $351 million were down $90 million from the prior quarter, and were up $49 million from the prior year quarter. |
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| • | Nonaccrual loans of $275 million were down $15 million from the prior quarter, and were up $97 million from the prior year quarter. The nonaccrual loans to total loans ratio was 1.37% in the fourth quarter, compared to 1.46% in the prior quarter, and 0.95% in the prior year quarter. |
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| • | Fourth quarter net charge offs of $9 million were down $9 million from the prior quarter. Full year net charge offs of $65 million were up $35 million year over year, primarily related to oil and gas loans. |
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| • | The allowance for loan losses of $278 million was up $9 million from the prior quarter, and was up $4 million from the prior year quarter. The allowance for loan losses to total loans ratio was 1.39% in the fourth quarter, compared to 1.36% in the prior quarter, and 1.47% in the prior year quarter. |
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| • | The allowance related to the oil and gas portfolio was $38 million at December 31, 2016, compared to $38 million at September 30, 2016, and $42 million at December 31, 2015. Full year charge offs related to the oil and gas portfolio were $59 million. The allowance represented 5.7% of total oil and gas loans at December 31, 2016, compared to 5.5% at September 30, 2016, and 5.6% at December 31, 2015. |
Capital
The Company’s capital position remains strong, with a CET1 ratio of 9.5% at December 31, 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.
FOURTH 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, January 19, 2017. 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 fourth quarter 2016 earnings call. The fourth quarter and full year 2016 financial tables with 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 and related materials may contain 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) | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr $ Change | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr $ Change |
| Assets | | | | | | | |
| Cash and due from banks | $ | 446,558 |
| $ | 356,047 |
| $ | 90,511 |
| $ | 333,000 |
| $ | 287,183 |
| $ | 374,921 |
| $ | 71,637 |
|
| Interest-bearing deposits in other financial institutions | 149,175 |
| 240,010 |
| (90,835 | ) | 131,680 |
| 68,025 |
| 79,764 |
| 69,411 |
|
| Federal funds sold and securities purchased under agreements to resell | 46,500 |
| 14,250 |
| 32,250 |
| 13,200 |
| 20,200 |
| 19,000 |
| 27,500 |
|
| Investment securities held to maturity, at amortized cost | 1,273,536 |
| 1,253,494 |
| 20,042 |
| 1,236,140 |
| 1,176,821 |
| 1,168,230 |
| 105,306 |
|
| Investment securities available for sale, at fair value | 4,680,226 |
| 4,846,088 |
| (165,862 | ) | 4,801,766 |
| 4,905,841 |
| 4,967,414 |
| (287,188 | ) |
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 140,001 |
| 140,215 |
| (214 | ) | 194,501 |
| 181,853 |
| 147,240 |
| (7,239 | ) |
| Loans held for sale | 141,383 |
| 230,795 |
| (89,412 | ) | 284,376 |
| 128,339 |
| 124,915 |
| 16,468 |
|
| Loans | 20,033,817 |
| 19,844,005 |
| 189,812 |
| 19,815,286 |
| 19,227,240 |
| 18,714,343 |
| 1,319,474 |
|
| Allowance for loan losses | (278,335 | ) | (269,540 | ) | (8,795 | ) | (267,780 | ) | (277,370 | ) | (274,264 | ) | (4,071 | ) |
| Loans, net | 19,755,482 |
| 19,574,465 |
| 181,017 |
| 19,547,506 |
| 18,949,870 |
| 18,440,079 |
| 1,315,403 |
|
| Premises and equipment, net | 330,315 |
| 329,726 |
| 589 |
| 331,427 |
| 331,711 |
| 267,606 |
| 62,709 |
|
| Goodwill | 971,951 |
| 971,951 |
| — |
| 971,951 |
| 971,951 |
| 968,844 |
| 3,107 |
|
| Mortgage servicing rights, net | 61,476 |
| 58,414 |
| 3,062 |
| 57,474 |
| 59,414 |
| 61,341 |
| 135 |
|
| Other intangible assets, net | 15,377 |
| 15,902 |
| (525 | ) | 16,427 |
| 16,966 |
| 16,458 |
| (1,081 | ) |
| Trading assets | 52,398 |
| 60,780 |
| (8,382 | ) | 77,112 |
| 53,087 |
| 32,192 |
| 20,206 |
|
| Other assets | 1,074,937 |
| 1,060,627 |
| 14,310 |
| 1,042,139 |
| 1,027,606 |
| 1,043,831 |
| 31,106 |
|
| Total assets | $ | 29,139,315 |
| $ | 29,152,764 |
| $ | (13,449 | ) | $ | 29,038,699 |
| $ | 28,178,867 |
| $ | 27,711,835 |
| $ | 1,427,480 |
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| Liabilities and Stockholders’ Equity | | | | | | | |
| Noninterest-bearing demand deposits | $ | 5,392,208 |
| $ | 5,337,677 |
| $ | 54,531 |
| $ | 5,039,336 |
| $ | 5,272,685 |
| $ | 5,562,466 |
| $ | (170,258 | ) |
| Interest-bearing deposits | 16,496,240 |
| 16,410,035 |
| 86,205 |
| 15,253,514 |
| 15,412,775 |
| 15,445,199 |
| 1,051,041 |
|
| Total deposits | 21,888,448 |
| 21,747,712 |
| 140,736 |
| 20,292,850 |
| 20,685,460 |
| 21,007,665 |
| 880,783 |
|
| Federal funds purchased and securities sold under agreements to repurchase | 508,347 |
| 698,772 |
| (190,425 | ) | 509,150 |
| 583,247 |
| 431,438 |
| 76,909 |
|
| Other short-term funding | 583,688 |
| 541,321 |
| 42,367 |
| 1,402,407 |
| 834,161 |
| 402,978 |
| 180,710 |
|
| Long-term funding | 2,761,795 |
| 2,761,635 |
| 160 |
| 3,511,475 |
| 2,861,316 |
| 2,676,164 |
| 85,631 |
|
| Trading liabilities | 51,103 |
| 62,301 |
| (11,198 | ) | 79,466 |
| 55,223 |
| 33,430 |
| 17,673 |
|
| Accrued expenses and other liabilities | 254,622 |
| 243,908 |
| 10,714 |
| 213,204 |
| 176,962 |
| 222,914 |
| 31,708 |
|
| Total liabilities | 26,048,003 |
| 26,055,649 |
| (7,646 | ) | 26,008,552 |
| 25,196,369 |
| 24,774,589 |
| 1,273,414 |
|
| Stockholders’ Equity | | | | | | | |
| Preferred equity | 159,929 |
| 159,929 |
| — |
| 120,201 |
| 120,347 |
| 121,379 |
| 38,550 |
|
| Common equity: | | | | | | | |
| Common stock | 1,630 |
| 1,630 |
| — |
| 1,630 |
| 1,630 |
| 1,642 |
| (12 | ) |
| Surplus | 1,459,498 |
| 1,459,161 |
| 337 |
| 1,453,285 |
| 1,447,368 |
| 1,458,522 |
| 976 |
|
| Retained earnings | 1,695,764 |
| 1,662,778 |
| 32,986 |
| 1,629,915 |
| 1,599,835 |
| 1,593,239 |
| 102,525 |
|
| Accumulated other comprehensive income (loss) | (54,679 | ) | (1,254 | ) | (53,425 | ) | 13,453 |
| 2,167 |
| (32,616 | ) | (22,063 | ) |
| Treasury stock, at cost | (170,830 | ) | (185,129 | ) | 14,299 |
| (188,337 | ) | (188,849 | ) | (204,920 | ) | 34,090 |
|
| Total common equity | 2,931,383 |
| 2,937,186 |
| (5,803 | ) | 2,909,946 |
| 2,862,151 |
| 2,815,867 |
| 115,516 |
|
| Total stockholders’ equity | 3,091,312 |
| 3,097,115 |
| (5,803 | ) | 3,030,147 |
| 2,982,498 |
| 2,937,246 |
| 154,066 |
|
| Total liabilities and stockholders’ equity | $ | 29,139,315 |
| $ | 29,152,764 |
| $ | (13,449 | ) | $ | 29,038,699 |
| $ | 28,178,867 |
| $ | 27,711,835 |
| $ | 1,427,480 |
|
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited) | | | | | | | | | | | | |
| | | | | Comp Qtr | | YTD | | YTD | | Comp YTD |
| (in thousands, except per share data) | | 4Q16 | | 4Q15 | | $ Change | | % Change | | Dec 2016 | | Dec 2015 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 169,473 |
| | $ | 155,602 |
| | $ | 13,871 |
| | 9 | % | | $ | 659,538 |
| | $ | 615,627 |
| | $ | 43,911 |
| | 7 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | |
| Taxable | | 22,418 |
| | 26,395 |
| | (3,977 | ) | | (15 | )% | | 95,152 |
| | 100,292 |
| | (5,140 | ) | | (5 | )% |
| Tax-exempt | | 8,184 |
| | 7,783 |
| | 401 |
| | 5 | % | | 32,049 |
| | 31,152 |
| | 897 |
| | 3 | % |
| Other interest | | 1,380 |
| | 1,639 |
| | (259 | ) | | (16 | )% | | 4,829 |
| | 6,591 |
| | (1,762 | ) | | (27 | )% |
| Total interest income | | 201,455 |
| | 191,419 |
| | 10,036 |
| | 5 | % | | 791,568 |
| | 753,662 |
| | 37,906 |
| | 5 | % |
| Interest Expense | | | | | | | | | | | | | | | | |
| Interest on deposits | | 13,773 |
| | 8,844 |
| | 4,929 |
| | 56 | % | | 50,335 |
| | 33,125 |
| | 17,210 |
| | 52 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 314 |
| | 229 |
| | 85 |
| | 37 | % | | 1,314 |
| | 943 |
| | 371 |
| | 39 | % |
| Interest on other short-term funding | | 458 |
| | 186 |
| | 272 |
| | 146 | % | | 2,114 |
| | 465 |
| | 1,649 |
| | N/M |
|
| Interest on long-term funding | | 6,875 |
| | 10,692 |
| | (3,817 | ) | | (36 | )% | | 30,532 |
| | 42,851 |
| | (12,319 | ) | | (29 | )% |
| Total interest expense | | 21,420 |
| | 19,951 |
| | 1,469 |
| | 7 | % | | 84,295 |
| | 77,384 |
| | 6,911 |
| | 9 | % |
| Net Interest Income | | 180,035 |
| | 171,468 |
| | 8,567 |
| | 5 | % | | 707,273 |
| | 676,278 |
| | 30,995 |
| | 5 | % |
| Provision for credit losses | | 15,000 |
| | 20,000 |
| | (5,000 | ) | | (25 | )% | | 70,000 |
| | 37,500 |
| | 32,500 |
| | 87 | % |
| Net interest income after provision for credit losses | | 165,035 |
| | 151,468 |
| | 13,567 |
| | 9 | % | | 637,273 |
| | 638,778 |
| | (1,505 | ) | | — | % |
| Noninterest Income | | | | | | | | | | | | | | | | |
| Trust service fees | | 12,211 |
| | 11,965 |
| | 246 |
| | 2 | % | | 46,867 |
| | 48,840 |
| | (1,973 | ) | | (4 | )% |
| Service charges on deposit accounts | | 16,447 |
| | 16,577 |
| | (130 | ) | | (1 | )% | | 66,609 |
| | 65,471 |
| | 1,138 |
| | 2 | % |
Card-based and other nondeposit fees (1) | | 12,592 |
| | 11,485 |
| | 1,107 |
| | 10 | % | | 50,077 |
| | 47,912 |
| | 2,165 |
| | 5 | % |
| Insurance commissions | | 17,977 |
| | 17,997 |
| | (20 | ) | | — | % | | 80,795 |
| | 75,363 |
| | 5,432 |
| | 7 | % |
| Brokerage and annuity commissions | | 4,188 |
| | 3,694 |
| | 494 |
| | 13 | % | | 16,235 |
| | 15,378 |
| | 857 |
| | 6 | % |
| Mortgage banking, net | | 11,559 |
| | 8,271 |
| | 3,288 |
| | 40 | % | | 38,121 |
| | 32,263 |
| | 5,858 |
| | 18 | % |
Capital market fees, net (1)(2) | | 7,716 |
| | 4,820 |
| | 2,896 |
| | 60 | % | | 22,059 |
| | 14,558 |
| | 7,501 |
| | 52 | % |
| Bank owned life insurance income | | 3,338 |
| | 2,092 |
| | 1,246 |
| | 60 | % | | 14,371 |
| | 9,796 |
| | 4,575 |
| | 47 | % |
| Asset gains (losses), net | | 767 |
| | (391 | ) | | 1,158 |
| | N/M |
| | (86 | ) | | 2,540 |
| | (2,626 | ) | | (103 | )% |
| Investment securities gains (losses), net | | 3,115 |
| | 4,095 |
| | (980 | ) | | (24 | )% | | 9,316 |
| | 8,133 |
| | 1,183 |
| | 15 | % |
Other (2) | | 2,379 |
| | 2,392 |
| | (13 | ) | | (1 | )% | | 8,519 |
| | 9,103 |
| | (584 | ) | | (6 | )% |
| Total noninterest income | | 92,289 |
| | 82,997 |
| | 9,292 |
| | 11 | % | | 352,883 |
| | 329,357 |
| | 23,526 |
| | 7 | % |
| Noninterest Expense | | | | | | | | | | | | | | | | |
| Personnel expense | | 107,491 |
| | 100,469 |
| | 7,022 |
| | 7 | % | | 414,837 |
| | 404,741 |
| | 10,096 |
| | 2 | % |
| Occupancy | | 13,690 |
| | 14,718 |
| | (1,028 | ) | | (7 | )% | | 56,069 |
| | 60,896 |
| | (4,827 | ) | | (8 | )% |
| Equipment | | 5,328 |
| | 5,695 |
| | (367 | ) | | (6 | )% | | 21,489 |
| | 23,209 |
| | (1,720 | ) | | (7 | )% |
| Technology | | 14,413 |
| | 13,953 |
| | 460 |
| | 3 | % | | 57,300 |
| | 60,613 |
| | (3,313 | ) | | (5 | )% |
| Business development and advertising | | 6,298 |
| | 7,652 |
| | (1,354 | ) | | (18 | )% | | 26,351 |
| | 25,772 |
| | 579 |
| | 2 | % |
| Other intangible amortization | | 525 |
| | 520 |
| | 5 |
| | 1 | % | | 2,093 |
| | 3,094 |
| | (1,001 | ) | | (32 | )% |
| Loan expense | | 3,443 |
| | 4,120 |
| | (677 | ) | | (16 | )% | | 13,641 |
| | 14,102 |
| | (461 | ) | | (3 | )% |
| Legal and professional fees | | 5,184 |
| | 3,963 |
| | 1,221 |
| | 31 | % | | 19,869 |
| | 17,052 |
| | 2,817 |
| | 17 | % |
| Foreclosure / OREO expense, net | | 677 |
| | 2,371 |
| | (1,694 | ) | | (71 | )% | | 4,844 |
| | 5,442 |
| | (598 | ) | | (11 | )% |
| FDIC expense | | 9,250 |
| | 7,500 |
| | 1,750 |
| | 23 | % | | 34,750 |
| | 26,000 |
| | 8,750 |
| | 34 | % |
| Other | | 12,616 |
| | 15,032 |
| | (2,416 | ) | | (16 | )% | | 51,317 |
| | 57,426 |
| | (6,109 | ) | | (11 | )% |
| Total noninterest expense | | 178,915 |
| | 175,993 |
| | 2,922 |
| | 2 | % | | 702,560 |
| | 698,347 |
| | 4,213 |
| | 1 | % |
| Income before income taxes | | 78,409 |
| | 58,472 |
| | 19,937 |
| | 34 | % | | 287,596 |
| | 269,788 |
| | 17,808 |
| | 7 | % |
| Income tax expense | | 23,576 |
| | 15,681 |
| | 7,895 |
| | 50 | % | | 87,322 |
| | 81,487 |
| | 5,835 |
| | 7 | % |
| Net income | | 54,833 |
| | 42,791 |
| | 12,042 |
| | 28 | % | | 200,274 |
| | 188,301 |
| | 11,973 |
| | 6 | % |
| Preferred stock dividends | | 2,348 |
| | 2,198 |
| | 150 |
| | 7 | % | | 8,903 |
| | 7,155 |
| | 1,748 |
| | 24 | % |
| Net income available to common equity | | $ | 52,485 |
| | $ | 40,593 |
| | $ | 11,892 |
| | 29 | % | | $ | 191,371 |
| | $ | 181,146 |
| | $ | 10,225 |
| | 6 | % |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.35 |
| | $ | 0.27 |
| | $ | 0.08 |
| | 30 | % | | $ | 1.27 |
| | $ | 1.20 |
| | $ | 0.07 |
| | 6 | % |
| Diluted | | $ | 0.34 |
| | $ | 0.27 |
| | $ | 0.07 |
| | 26 | % | | $ | 1.26 |
| | $ | 1.19 |
| | $ | 0.07 |
| | 6 | % |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | |
| Basic | | 149,253 |
| | 148,834 |
| | 419 |
| | — | % | | 148,769 |
| | 149,350 |
| | (581 | ) | | — | % |
| Diluted | | 151,563 |
| | 150,163 |
| | 1,400 |
| | 1 | % | | 149,961 |
| | 150,603 |
| | (642 | ) | | — | % |
| N/M - Not meaningful | | | | | | | | | | | | | | | | |
(1) During the fourth quarter of 2016, the consolidated statements of income were modified from prior periods' presentation to conform with the current period presentation, which reflects loan syndications as a component of Capital Market fees, net. In prior periods' presentation, loan syndications were reported as a component of Card-based and other nondeposit fees. All prior periods have been restated to reflect this change in presentation. (2) During the fourth quarter of 2016, the consolidated statements of income were modified from prior periods' presentation to conform with the current period presentation, which reflects bond underwriting as a component of Capital Market fees, net. In prior periods' presentation, bond underwriting was reported as a component of Other. All prior periods have been restated to reflect this change in presentation. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Consolidated Statements of Income (Unaudited)—Quarterly Trend |
| | | | | | | Seql Qtr | | | | | | | | Comp Qtr |
| (in thousands, except per share data) | | 4Q16 | | 3Q16 | | $ Change | | % Change | | 2Q16 | | 1Q16 | | 4Q15 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 169,473 |
| | $ | 167,350 |
| | $ | 2,123 |
| | 1 | % | | $ | 163,059 |
| | $ | 159,656 |
| | $ | 155,602 |
| | $ | 13,871 |
| | 9 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | | | |
| Taxable | | 22,418 |
| | 22,948 |
| | (530 | ) | | (2 | )% | | 24,270 |
| | 25,516 |
| | 26,395 |
| | (3,977 | ) | | (15 | )% |
| Tax-exempt | | 8,184 |
| | 8,141 |
| | 43 |
| | 1 | % | | 7,894 |
| | 7,830 |
| | 7,783 |
| | 401 |
| | 5 | % |
| Other interest | | 1,380 |
| | 1,064 |
| | 316 |
| | 30 | % | | 1,318 |
| | 1,067 |
| | 1,639 |
| | (259 | ) | | (16 | )% |
| Total interest income | | 201,455 |
| | 199,503 |
| | 1,952 |
| | 1 | % | | 196,541 |
| | 194,069 |
| | 191,419 |
| | 10,036 |
| | 5 | % |
| Interest Expense | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | 13,773 |
| | 13,118 |
| | 655 |
| | 5 | % | | 11,678 |
| | 11,766 |
| | 8,844 |
| | 4,929 |
| | 56 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 314 |
| | 326 |
| | (12 | ) | | (4 | )% | | 378 |
| | 296 |
| | 229 |
| | 85 |
| | 37 | % |
| Interest on other short-term funding | | 458 |
| | 296 |
| | 162 |
| | 55 | % | | 845 |
| | 515 |
| | 186 |
| | 272 |
| | 146 | % |
| Interest on long-term funding | | 6,875 |
| | 7,229 |
| | (354 | ) | | (5 | )% | | 6,923 |
| | 9,505 |
| | 10,692 |
| | (3,817 | ) | | (36 | )% |
| Total interest expense | | 21,420 |
| | 20,969 |
| | 451 |
| | 2 | % | | 19,824 |
| | 22,082 |
| | 19,951 |
| | 1,469 |
| | 7 | % |
| Net Interest Income | | 180,035 |
| | 178,534 |
| | 1,501 |
| | 1 | % | | 176,717 |
| | 171,987 |
| | 171,468 |
| | 8,567 |
| | 5 | % |
| Provision for credit losses | | 15,000 |
| | 21,000 |
| | (6,000 | ) | | (29 | )% | | 14,000 |
| | 20,000 |
| | 20,000 |
| | (5,000 | ) | | (25 | )% |
| Net interest income after provision for credit losses | | 165,035 |
| | 157,534 |
| | 7,501 |
| | 5 | % | | 162,717 |
| | 151,987 |
| | 151,468 |
| | 13,567 |
| | 9 | % |
| Noninterest Income | | | | | | | | | | | | | | | | | | |
| Trust service fees | | 12,211 |
| | 11,700 |
| | 511 |
| | 4 | % | | 11,509 |
| | 11,447 |
| | 11,965 |
| | 246 |
| | 2 | % |
| Service charges on deposit accounts | | 16,447 |
| | 17,445 |
| | (998 | ) | | (6 | )% | | 16,444 |
| | 16,273 |
| | 16,577 |
| | (130 | ) | | (1 | )% |
Card-based and other nondeposit fees (1) | | 12,592 |
| | 12,777 |
| | (185 | ) | | (1 | )% | | 12,717 |
| | 11,991 |
| | 11,485 |
| | 1,107 |
| | 10 | % |
| Insurance commissions | | 17,977 |
| | 19,431 |
| | (1,454 | ) | | (7 | )% | | 22,005 |
| | 21,382 |
| | 17,997 |
| | (20 | ) | | — | % |
| Brokerage and annuity commissions | | 4,188 |
| | 4,155 |
| | 33 |
| | 1 | % | | 4,098 |
| | 3,794 |
| | 3,694 |
| | 494 |
| | 13 | % |
| Mortgage banking, net | | 11,559 |
| | 18,291 |
| | (6,732 | ) | | (37 | )% | | 4,067 |
| | 4,204 |
| | 8,271 |
| | 3,288 |
| | 40 | % |
Capital market fees, net (1)(2) | | 7,716 |
| | 7,012 |
| | 704 |
| | 10 | % | | 3,793 |
| | 3,538 |
| | 4,820 |
| | 2,896 |
| | 60 | % |
| Bank owned life insurance income | | 3,338 |
| | 3,290 |
| | 48 |
| | 1 | % | | 2,973 |
| | 4,770 |
| | 2,092 |
| | 1,246 |
| | 60 | % |
| Asset gains (losses), net | | 767 |
| | (1,034 | ) | | 1,801 |
| | (174 | )% | | (343 | ) | | 524 |
| | (391 | ) | | 1,158 |
| | N/M |
|
| Investment securities gains (losses), net | | 3,115 |
| | (13 | ) | | 3,128 |
| | N/M |
| | 3,116 |
| | 3,098 |
| | 4,095 |
| | (980 | ) | | (24 | )% |
Other (2) | | 2,379 |
| | 2,180 |
| | 199 |
| | 9 | % | | 1,789 |
| | 2,171 |
| | 2,392 |
| | (13 | ) | | (1 | )% |
| Total noninterest income | | 92,289 |
| | 95,234 |
| | (2,945 | ) | | (3 | )% | | 82,168 |
| | 83,192 |
| | 82,997 |
| | 9,292 |
| | 11 | % |
| Noninterest Expense | | | | | | | | | | | | | | | | | | |
| Personnel expense | | 107,491 |
| | 103,819 |
| | 3,672 |
| | 4 | % | | 102,129 |
| | 101,398 |
| | 100,469 |
| | 7,022 |
| | 7 | % |
| Occupancy | | 13,690 |
| | 15,362 |
| | (1,672 | ) | | (11 | )% | | 13,215 |
| | 13,802 |
| | 14,718 |
| | (1,028 | ) | | (7 | )% |
| Equipment | | 5,328 |
| | 5,319 |
| | 9 |
| | — | % | | 5,396 |
| | 5,446 |
| | 5,695 |
| | (367 | ) | | (6 | )% |
| Technology | | 14,413 |
| | 14,173 |
| | 240 |
| | 2 | % | | 14,450 |
| | 14,264 |
| | 13,953 |
| | 460 |
| | 3 | % |
| Business development and advertising | | 6,298 |
| | 5,251 |
| | 1,047 |
| | 20 | % | | 6,591 |
| | 8,211 |
| | 7,652 |
| | (1,354 | ) | | (18 | )% |
| Other intangible amortization | | 525 |
| | 525 |
| | — |
| | — | % | | 539 |
| | 504 |
| | 520 |
| | 5 |
| | 1 | % |
| Loan expense | | 3,443 |
| | 3,535 |
| | (92 | ) | | (3 | )% | | 3,442 |
| | 3,221 |
| | 4,120 |
| | (677 | ) | | (16 | )% |
| Legal and professional fees | | 5,184 |
| | 4,804 |
| | 380 |
| | 8 | % | | 4,856 |
| | 5,025 |
| | 3,963 |
| | 1,221 |
| | 31 | % |
| Foreclosure / OREO expense, net | | 677 |
| | 960 |
| | (283 | ) | | (29 | )% | | 1,330 |
| | 1,877 |
| | 2,371 |
| | (1,694 | ) | | (71 | )% |
| FDIC expense | | 9,250 |
| | 9,000 |
| | 250 |
| | 3 | % | | 8,750 |
| | 7,750 |
| | 7,500 |
| | 1,750 |
| | 23 | % |
| Other | | 12,616 |
| | 12,566 |
| | 50 |
| | — | % | | 13,662 |
| | 12,473 |
| | 15,032 |
| | (2,416 | ) | | (16 | )% |
| Total noninterest expense | | 178,915 |
| | 175,314 |
| | 3,601 |
| | 2 | % | | 174,360 |
| | 173,971 |
| | 175,993 |
| | 2,922 |
| | 2 | % |
| Income before income taxes | | 78,409 |
| | 77,454 |
| | 955 |
| | 1 | % | | 70,525 |
| | 61,208 |
| | 58,472 |
| | 19,937 |
| | 34 | % |
| Income tax expense | | 23,576 |
| | 23,638 |
| | (62 | ) | | — | % | | 21,434 |
| | 18,674 |
| | 15,681 |
| | 7,895 |
| | 50 | % |
| Net income | | 54,833 |
| | 53,816 |
| | 1,017 |
| | 2 | % | | 49,091 |
| | 42,534 |
| | 42,791 |
| | 12,042 |
| | 28 | % |
| Preferred stock dividends | | 2,348 |
| | 2,188 |
| | 160 |
| | 7 | % | | 2,169 |
| | 2,198 |
| | 2,198 |
| | 150 |
| | 7 | % |
| Net income available to common equity | | $ | 52,485 |
| | $ | 51,628 |
| | $ | 857 |
| | 2 | % | | $ | 46,922 |
| | $ | 40,336 |
| | $ | 40,593 |
| | $ | 11,892 |
| | 29 | % |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.35 |
| | $ | 0.34 |
| | $ | 0.01 |
| | 3 | % | | $ | 0.31 |
| | $ | 0.27 |
| | $ | 0.27 |
| | $ | 0.08 |
| | 30 | % |
| Diluted | | $ | 0.34 |
| | $ | 0.34 |
| | $ | — |
| | — | % | | $ | 0.31 |
| | $ | 0.27 |
| | $ | 0.27 |
| | $ | 0.07 |
| | 26 | % |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | | | |
| Basic | | 149,253 |
| | 148,708 |
| | 545 |
| | — | % | | 148,511 |
| | 148,601 |
| | 148,834 |
| | 419 |
| | — | % |
| Diluted | | 151,563 |
| | 149,973 |
| | 1,590 |
| | 1 | % | | 149,530 |
| | 149,454 |
| | 150,163 |
| | 1,400 |
| | 1 | % |
| N/M - Not meaningful |
(1) During the fourth quarter of 2016, the consolidated statements of income were modified from prior periods' presentation to conform with the current period presentation, which reflects loan syndications as a component of Capital Market fees, net. In prior periods' presentation, loan syndications were reported as a component of Card-based and other nondeposit fees. All prior periods have been restated to reflect this change in presentation. (2) During the fourth quarter of 2016, the consolidated statements of income were modified from prior periods' presentation to conform with the current period presentation, which reflects bond underwriting as a component of Capital Market fees, net. In prior periods' presentation, bond underwriting was reported as a component of Other. All prior periods have been restated to reflect this change in presentation. |
|
| | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Quarterly Information | | | | | | | | |
| ($ in millions, except share and per share, full time equivalent employee data and branch count) | | YTD
Dec 2016 | YTD
Dec 2015 | 4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 |
| Per Common Share Data | | | | | | | | |
| Dividends | | $ | 0.45 |
| $ | 0.41 |
| $ | 0.12 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.11 |
|
| Market value: | | | | | | | | |
| High | | 25.15 |
| 20.84 |
| 25.15 |
| 19.91 |
| 18.84 |
| 18.79 |
| 20.61 |
|
| Low | | 15.48 |
| 16.62 |
| 19.05 |
| 16.49 |
| 15.84 |
| 15.48 |
| 17.98 |
|
| Close | | 24.70 |
| 18.75 |
| 24.70 |
| 19.59 |
| 17.15 |
| 17.94 |
| 18.75 |
|
| Book value | | 19.27 |
| 18.62 |
| 19.27 |
| 19.42 |
| 19.27 |
| 18.96 |
| 18.62 |
|
| Tangible book value / share | | $ | 12.78 |
| $ | 12.10 |
| $ | 12.78 |
| $ | 12.89 |
| $ | 12.72 |
| $ | 12.41 |
| $ | 12.10 |
|
| Performance Ratios (annualized) | | | | | | | | |
| Return on average assets | | 0.70 | % | 0.70 | % | 0.75 | % | 0.74 | % | 0.69 | % | 0.62 | % | 0.62 | % |
| Effective tax rate | | 30.36 | % | 30.20 | % | 30.07 | % | 30.52 | % | 30.39 | % | 30.51 | % | 26.82 | % |
Dividend payout ratio(1) | | 35.43 | % | 34.17 | % | 34.29 | % | 32.35 | % | 35.48 | % | 40.74 | % | 40.74 | % |
| Selected Trend Information | | | | | | | | |
| Average full time equivalent employees | | 4,426 |
| 4,421 |
| 4,439 |
| 4,477 |
| 4,415 |
| 4,374 |
| 4,378 |
|
| Branch count | | | | 217 |
| 217 |
| 215 |
| 215 |
| 215 |
|
| Trust assets under management, at market value | | | | $ | 8,302 |
| $ | 8,179 |
| $ | 7,944 |
| $ | 7,844 |
| $ | 7,729 |
|
| Mortgage loans originated for sale during period | | $ | 1,282 |
| $ | 1,228 |
| $ | 298 |
| $ | 466 |
| $ | 324 |
| $ | 194 |
| $ | 317 |
|
| Mortgage loan settlements during period | | $ | 1,543 |
| $ | 1,241 |
| $ | 396 |
| $ | 655 |
| $ | 270 |
| $ | 222 |
| $ | 299 |
|
| Mortgage portfolio serviced for others | | | | $ | 7,975 |
| $ | 8,011 |
| $ | 7,776 |
| $ | 7,877 |
| $ | 7,915 |
|
| Mortgage servicing rights, net / mortgage portfolio serviced for others | | | | 0.77 | % | 0.73 | % | 0.74 | % | 0.75 | % | 0.77 | % |
| Shares outstanding, end of period | | | | 152,121 |
| 151,243 |
| 151,036 |
| 150,994 |
| 151,239 |
|
| Selected Quarterly Ratios | | | | | | | | |
| Loans / deposits | | | | 91.53 | % | 91.25 | % | 97.65 | % | 92.95 | % | 89.08 | % |
| Stockholders’ equity / assets | | | | 10.61 | % | 10.62 | % | 10.43 | % | 10.58 | % | 10.60 | % |
Risk-based Capital (2) (3) | | | | | | | | |
| Total risk-weighted assets | | | | $ | 21,350 |
| $ | 21,265 |
| $ | 21,168 |
| $ | 20,454 |
| $ | 19,930 |
|
| Common equity Tier 1 | | | | $ | 2,033 |
| $ | 1,984 |
| $ | 1,941 |
| $ | 1,903 |
| $ | 1,898 |
|
| Common equity Tier 1 capital ratio | | | | 9.52 | % | 9.33 | % | 9.17 | % | 9.30 | % | 9.52 | % |
| Tier 1 capital ratio | | | | 10.27 | % | 10.08 | % | 9.73 | % | 9.88 | % | 10.12 | % |
| Total capital ratio | | | | 12.68 | % | 12.49 | % | 12.16 | % | 12.35 | % | 12.62 | % |
| Tier 1 leverage ratio | | | | 7.83 | % | 7.64 | % | 7.43 | % | 7.55 | % | 7.60 | % |
| |
| (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) | December 31, 2016 data is estimated. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information | | | | | | |
| (in thousands) | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | | $ | 269,540 |
| $ | 267,780 |
| 1 | % | | $ | 277,370 |
| $ | 274,264 |
| $ | 262,536 |
| 3 | % |
| Provision for loan losses | | 18,000 |
| 20,000 |
| (10 | )% | | 11,000 |
| 20,000 |
| 19,500 |
| (8 | )% |
| Charge offs | | (11,609 | ) | (28,964 | ) | (60 | )% | | (24,621 | ) | (21,245 | ) | (12,741 | ) | (9 | )% |
| Recoveries | | 2,404 |
| 10,724 |
| (78 | )% | | 4,031 |
| 4,351 |
| 4,969 |
| (52 | )% |
| Net charge offs | | (9,205 | ) | (18,240 | ) | (50 | )% | | (20,590 | ) | (16,894 | ) | (7,772 | ) | 18 | % |
| Balance at end of period | | $ | 278,335 |
| $ | 269,540 |
| 3 | % | | $ | 267,780 |
| $ | 277,370 |
| $ | 274,264 |
| 1 | % |
| Allowance for Unfunded Commitments | | | | | | | | | |
| Balance at beginning of period | | $ | 28,400 |
| $ | 27,400 |
| 4 | % | | $ | 24,400 |
| $ | 24,400 |
| $ | 23,900 |
| 19 | % |
| Provision for unfunded commitments | | (3,000 | ) | 1,000 |
| N/M |
| | 3,000 |
| — |
| 500 |
| N/M |
|
| Balance at end of period | | $ | 25,400 |
| $ | 28,400 |
| (11 | )% | | $ | 27,400 |
| $ | 24,400 |
| $ | 24,400 |
| 4 | % |
| Allowance for credit losses | | $ | 303,735 |
| $ | 297,940 |
| 2 | % | | $ | 295,180 |
| $ | 301,770 |
| $ | 298,664 |
| 2 | % |
| Provision for credit losses | | $ | 15,000 |
| $ | 21,000 |
| (29 | )% | | $ | 14,000 |
| $ | 20,000 |
| $ | 20,000 |
| (25 | )% |
| Net Charge Offs | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | (6,566 | ) | $ | (16,407 | ) | (60 | )% | | $ | (18,564 | ) | $ | (14,936 | ) | $ | (4,586 | ) | 43 | % |
| Commercial real estate—owner occupied | | (221 | ) | (154 | ) | 44 | % | | (20 | ) | (43 | ) | (291 | ) | (24 | )% |
| Commercial and business lending | | (6,787 | ) | (16,561 | ) | (59 | )% | | (18,584 | ) | (14,979 | ) | (4,877 | ) | 39 | % |
| Commercial real estate—investor | | 5 |
| (564 | ) | (101 | )% | | (560 | ) | 1,239 |
| (665 | ) | (101 | )% |
| Real estate construction | | (86 | ) | (22 | ) | N/M |
| | (219 | ) | (28 | ) | 140 |
| (161 | )% |
| Commercial real estate lending | | (81 | ) | (586 | ) | (86 | )% | | (779 | ) | 1,211 |
| (525 | ) | (85 | )% |
| Total commercial | | (6,868 | ) | (17,147 | ) | (60 | )% | | (19,363 | ) | (13,768 | ) | (5,402 | ) | 27 | % |
| Residential mortgage | | (1,048 | ) | (540 | ) | 94 | % | | (757 | ) | (1,232 | ) | (714 | ) | 47 | % |
| Home equity revolving lines of credit | | (611 | ) | 36 |
| N/M |
| | 275 |
| (902 | ) | (294 | ) | 108 | % |
| Home equity loans junior liens | | 120 |
| 89 |
| 35 | % | | 42 |
| (244 | ) | (623 | ) | (119 | )% |
| Home equity | | (491 | ) | 125 |
| N/M |
| | 317 |
| (1,146 | ) | (917 | ) | (46 | )% |
| Other consumer | | (798 | ) | (678 | ) | 18 | % | | (787 | ) | (748 | ) | (739 | ) | 8 | % |
| Total consumer | | (2,337 | ) | (1,093 | ) | 114 | % | | (1,227 | ) | (3,126 | ) | (2,370 | ) | (1 | )% |
| Total net charge offs | | $ | (9,205 | ) | $ | (18,240 | ) | (50 | )% | | $ | (20,590 | ) | $ | (16,894 | ) | $ | (7,772 | ) | 18 | % |
| Net Charge Offs to Average Loans (in basis points) * | | Dec 31, 2016 | Sep 30, 2016 | | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |
| Commercial and industrial | | (40 | ) | (98 | ) | | | (114 | ) | (97 | ) | (31 | ) | |
| Commercial real estate—owner occupied | | (10 | ) | (7 | ) | | | (1 | ) | (2 | ) | (12 | ) | |
| Commercial and business lending | | (36 | ) | (87 | ) | | | (100 | ) | (85 | ) | (28 | ) | |
| Commercial real estate—investor | | N/M |
| (6 | ) | | | (7 | ) | 15 |
| (8 | ) | |
| Real estate construction | | (3 | ) | (1 | ) | | | (7 | ) | (1 | ) | 5 |
| |
| Commercial real estate lending | | (1 | ) | (5 | ) | | | (7 | ) | 11 |
| (5 | ) | |
| Total commercial | | (22 | ) | (55 | ) | | | (64 | ) | (48 | ) | (19 | ) | |
| Residential mortgage | | (7 | ) | (3 | ) | | | (5 | ) | (8 | ) | (5 | ) | |
| Home equity revolving lines of credit | | (29 | ) | 2 |
| | | 13 |
| (41 | ) | (13 | ) | |
| Home equity loans junior liens | | 49 |
| 34 |
| | | 15 |
| (83 | ) | (195 | ) | |
| Home equity | | (21 | ) | 5 |
| | | 13 |
| (46 | ) | (36 | ) | |
| Other consumer | | (80 | ) | (67 | ) | | | (78 | ) | (72 | ) | (69 | ) | |
| Total consumer | | (12 | ) | (6 | ) | | | (7 | ) | (17 | ) | (13 | ) | |
| Total net charge offs | | (18 | ) | (36 | ) | | | (42 | ) | (36 | ) | (17 | ) | |
| Credit Quality | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Nonaccrual loans | | $ | 275,303 |
| $ | 289,911 |
| (5 | )% | | $ | 282,602 |
| $ | 286,395 |
| $ | 178,258 |
| 54 | % |
| Other real estate owned (OREO) | | 10,274 |
| 14,499 |
| (29 | )% | | 13,669 |
| 16,056 |
| 14,569 |
| (29 | )% |
| Other nonperforming assets | | 7,418 |
| — |
| N/M |
| | — |
| — |
| — |
| N/M |
|
| Total nonperforming assets | | $ | 292,995 |
| $ | 304,410 |
| (4 | )% | | $ | 296,271 |
| $ | 302,451 |
| $ | 192,827 |
| 52 | % |
| Loans 90 or more days past due and still accruing | | $ | 1,613 |
| $ | 1,511 |
| 7 | % | | $ | 1,494 |
| $ | 1,629 |
| $ | 1,648 |
| (2 | )% |
| Allowance for loan losses to loans | | 1.39 | % | 1.36 | % | | | 1.35 | % | 1.44 | % | 1.47 | % | |
| Allowance for loan losses to nonaccrual loans | | 101.10 | % | 92.97 | % | | | 94.76 | % | 96.85 | % | 153.86 | % | |
| Nonaccrual loans to total loans | | 1.37 | % | 1.46 | % | | | 1.43 | % | 1.49 | % | 0.95 | % | |
| Nonperforming assets to total loans plus OREO | | 1.46 | % | 1.53 | % | | | 1.49 | % | 1.57 | % | 1.03 | % | |
| Nonperforming assets to total assets | | 1.01 | % | 1.04 | % | | | 1.02 | % | 1.07 | % | 0.70 | % | |
| Year-to-date net charge offs to average loans * | | 0.33 | % | 0.38 | % | | | 0.39 | % | 0.36 | % | 0.16 | % | |
| * Annualized | | | | | | | | | |
| N/M - Not meaningful | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information (continued) |
| (in thousands) | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change |
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Nonaccrual loans | | | | | | | | | |
| Commercial and industrial | | $ | 183,371 |
| $ | 205,902 |
| (11 | )% | | $ | 193,439 |
| $ | 197,115 |
| $ | 93,575 |
| 96 | % |
| Commercial real estate—owner occupied | | 9,544 |
| 6,995 |
| 36 | % | | 9,635 |
| 9,443 |
| 8,049 |
| 19 | % |
| Commercial and business lending | | 192,915 |
| 212,897 |
| (9 | )% | | 203,074 |
| 206,558 |
| 101,624 |
| 90 | % |
| Commercial real estate—investor | | 18,051 |
| 8,028 |
| 125 | % | | 11,528 |
| 12,330 |
| 8,643 |
| 109 | % |
| Real estate construction | | 844 |
| 864 |
| (2 | )% | | 957 |
| 840 |
| 940 |
| (10 | )% |
| Commercial real estate lending | | 18,895 |
| 8,892 |
| 112 | % | | 12,485 |
| 13,170 |
| 9,583 |
| 97 | % |
| Total commercial | | 211,810 |
| 221,789 |
| (4 | )% | | 215,559 |
| 219,728 |
| 111,207 |
| 90 | % |
| Residential mortgage | | 50,236 |
| 53,475 |
| (6 | )% | | 52,300 |
| 52,212 |
| 51,482 |
| (2 | )% |
| Home equity revolving lines of credit | | 8,588 |
| 9,462 |
| (9 | )% | | 8,797 |
| 8,822 |
| 9,917 |
| (13 | )% |
| Home equity loans junior liens | | 4,413 |
| 4,885 |
| (10 | )% | | 5,566 |
| 5,250 |
| 5,327 |
| (17 | )% |
| Home equity | | 13,001 |
| 14,347 |
| (9 | )% | | 14,363 |
| 14,072 |
| 15,244 |
| (15 | )% |
| Other consumer | | 256 |
| 300 |
| (15 | )% | | 380 |
| 383 |
| 325 |
| (21 | )% |
| Total consumer | | 63,493 |
| 68,122 |
| (7 | )% | | 67,043 |
| 66,667 |
| 67,051 |
| (5 | )% |
| Total nonaccrual loans | | $ | 275,303 |
| $ | 289,911 |
| (5 | )% | | $ | 282,602 |
| $ | 286,395 |
| $ | 178,258 |
| 54 | % |
| | | | | | | | | | |
| Restructured loans (accruing) | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 31,884 |
| $ | 30,248 |
| 5 | % | | $ | 29,179 |
| $ | 28,908 |
| $ | 29,293 |
| 9 | % |
| Commercial real estate—owner occupied | | 5,490 |
| 7,445 |
| (26 | )% | | 7,509 |
| 7,693 |
| 7,877 |
| (30 | )% |
| Commercial and business lending | | 37,374 |
| 37,693 |
| (1 | )% | | 36,688 |
| 36,601 |
| 37,170 |
| 1 | % |
| Commercial real estate—investor | | 15,289 |
| 15,352 |
| — | % | | 20,191 |
| 20,993 |
| 21,915 |
| (30 | )% |
| Real estate construction | | 359 |
| 365 |
| (2 | )% | | 372 |
| 386 |
| 510 |
| (30 | )% |
| Commercial real estate lending | | 15,648 |
| 15,717 |
| — | % | | 20,563 |
| 21,379 |
| 22,425 |
| (30 | )% |
| Total commercial | | 53,022 |
| 53,410 |
| (1 | )% | | 57,251 |
| 57,980 |
| 59,595 |
| (11 | )% |
| Residential mortgage | | 18,100 |
| 18,049 |
| — | % | | 18,314 |
| 19,807 |
| 19,870 |
| (9 | )% |
| Home equity revolving lines of credit | | 555 |
| 585 |
| (5 | )% | | 576 |
| 1,377 |
| 1,332 |
| (58 | )% |
| Home equity loans junior liens | | 7,201 |
| 7,100 |
| 1 | % | | 6,379 |
| 5,540 |
| 5,737 |
| 26 | % |
| Home equity | | 7,756 |
| 7,685 |
| 1 | % | | 6,955 |
| 6,917 |
| 7,069 |
| 10 | % |
| Other consumer | | 979 |
| 926 |
| 6 | % | | 906 |
| 893 |
| 829 |
| 18 | % |
| Total consumer | | 26,835 |
| 26,660 |
| 1 | % | | 26,175 |
| 27,617 |
| 27,768 |
| (3 | )% |
| Total restructured loans (accruing) | | $ | 79,857 |
| $ | 80,070 |
| — | % | | $ | 83,426 |
| $ | 85,597 |
| $ | 87,363 |
| (9 | )% |
| Restructured loans included in nonaccrual loans (not included with restructed loans (accruing)) | | $ | 29,385 |
| $ | 31,758 |
| (7 | )% | | $ | 34,841 |
| $ | 35,232 |
| $ | 37,684 |
| (22 | )% |
| | | | | | | | | | |
| Accruing Loans 30-89 Days Past Due | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 1,413 |
| $ | 950 |
| 49 | % | | $ | 2,124 |
| $ | 2,901 |
| $ | 1,011 |
| 40 | % |
| Commercial real estate—owner occupied | | 1,384 |
| 869 |
| 59 | % | | 193 |
| 520 |
| 7,142 |
| (81 | )% |
| Commercial and business lending | | 2,797 |
| 1,819 |
| 54 | % | | 2,317 |
| 3,421 |
| 8,153 |
| (66 | )% |
| Commercial real estate—investor | | 931 |
| 630 |
| 48 | % | | 2,715 |
| 1,072 |
| 291 |
| N/M |
|
| Real estate construction | | 369 |
| 402 |
| (8 | )% | | 524 |
| 415 |
| 296 |
| 25 | % |
| Commercial real estate lending | | 1,300 |
| 1,032 |
| 26 | % | | 3,239 |
| 1,487 |
| 587 |
| 121 | % |
| Total commercial | | 4,097 |
| 2,851 |
| 44 | % | | 5,556 |
| 4,908 |
| 8,740 |
| (53 | )% |
| Residential mortgage | | 8,142 |
| 6,697 |
| 22 | % | | 7,382 |
| 3,594 |
| 4,930 |
| 65 | % |
| Home equity revolving lines of credit | | 4,219 |
| 4,137 |
| 2 | % | | 6,075 |
| 3,582 |
| 5,559 |
| (24 | )% |
| Home equity loans junior liens | | 1,630 |
| 1,336 |
| 22 | % | | 1,655 |
| 2,222 |
| 2,360 |
| (31 | )% |
| Home equity | | 5,849 |
| 5,473 |
| 7 | % | | 7,730 |
| 5,804 |
| 7,919 |
| (26 | )% |
| Other consumer | | 3,189 |
| 2,046 |
| 56 | % | | 1,895 |
| 1,682 |
| 1,870 |
| 71 | % |
| Total consumer | | 17,180 |
| 14,216 |
| 21 | % | | 17,007 |
| 11,080 |
| 14,719 |
| 17 | % |
| Total accruing loans 30-89 days past due | | $ | 21,277 |
| $ | 17,067 |
| 25 | % | | $ | 22,563 |
| $ | 15,988 |
| $ | 23,459 |
| (9 | )% |
| | | | | | | | | | |
| Potential Problem Loans | | Dec 31, 2016 | Sep 30, 2016 | Seql Qtr % Change | | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Comp Qtr % Change |
| Commercial and industrial | | $ | 227,196 |
| $ | 351,290 |
| (35 | )% | | $ | 379,818 |
| $ | 328,464 |
| $ | 233,130 |
| (3 | )% |
| Commercial real estate—owner occupied | | 64,524 |
| 47,387 |
| 36 | % | | 45,671 |
| 41,107 |
| 35,706 |
| 81 | % |
| Commercial and business lending | | 291,720 |
| 398,677 |
| (27 | )% | | 425,489 |
| 369,571 |
| 268,836 |
| 9 | % |
| Commercial real estate—investor | | 51,228 |
| 36,765 |
| 39 | % | | 25,081 |
| 25,385 |
| 25,944 |
| 97 | % |
| Real estate construction | | 2,465 |
| 1,929 |
| 28 | % | | 2,117 |
| 2,422 |
| 3,919 |
| (37 | )% |
| Commercial real estate lending | | 53,693 |
| 38,694 |
| 39 | % | | 27,198 |
| 27,807 |
| 29,863 |
| 80 | % |
| Total commercial | | 345,413 |
| 437,371 |
| (21 | )% | | 452,687 |
| 397,378 |
| 298,699 |
| 16 | % |
| Residential mortgage | | 5,615 |
| 3,226 |
| 74 | % | | 3,953 |
| 3,488 |
| 2,796 |
| 101 | % |
| Home equity revolving lines of credit | | 46 |
| 46 |
| — | % | | 62 |
| 48 |
| 48 |
| (4 | )% |
| Home equity loans junior liens | | 68 |
| 32 |
| 113 | % | | 32 |
| 161 |
| 174 |
| (61 | )% |
| Home equity | | 114 |
| 78 |
| 46 | % | | 94 |
| 209 |
| 222 |
| (49 | )% |
| Total consumer | | 5,729 |
| 3,304 |
| 73 | % | | 4,047 |
| 3,697 |
| 3,018 |
| 90 | % |
| Total potential problem loans | | $ | 351,142 |
| $ | 440,675 |
| (20 | )% | | $ | 456,734 |
| $ | 401,075 |
| $ | 301,717 |
| 16 | % |
| N/M - Not meaningful | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis—Fully Tax-Equivalent Basis — Sequential and Comparable Quarter | | | | |
| | Quarter ended, |
| | December 31, 2016 | | September 30, 2016 | | December 31, 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 | $ | 7,406,810 |
| $ | 61,464 |
| 3.30 | % | | $ | 7,577,470 |
| $ | 61,147 |
| 3.21 | % | | $ | 6,892,162 |
| $ | 55,451 |
| 3.19 | % |
| Commercial real estate lending | 4,914,643 |
| 42,663 |
| 3.45 | % | | 4,855,827 |
| 41,600 |
| 3.41 | % | | 4,373,460 |
| 37,587 |
| 3.41 | % |
| Total commercial | 12,321,453 |
| 104,127 |
| 3.36 | % | | 12,433,297 |
| 102,747 |
| 3.29 | % | | 11,265,622 |
| 93,038 |
| 3.28 | % |
| Residential mortgage | 6,317,769 |
| 49,557 |
| 3.14 | % | | 6,255,264 |
| 49,254 |
| 3.15 | % | | 5,845,557 |
| 47,305 |
| 3.24 | % |
| Retail | 1,337,848 |
| 16,716 |
| 4.99 | % | | 1,364,215 |
| 16,283 |
| 4.77 | % | | 1,431,509 |
| 16,673 |
| 4.65 | % |
| Total loans | 19,977,070 |
| 170,400 |
| 3.40 | % | | 20,052,776 |
| 168,284 |
| 3.35 | % | | 18,542,688 |
| 157,016 |
| 3.37 | % |
| Investment securities: | | | | | | | | | | | |
| Taxable | 4,963,633 |
| 22,418 |
| 1.81 | % | | 4,859,750 |
| 22,948 |
| 1.89 | % | | 5,205,033 |
| 26,395 |
| 2.03 | % |
Tax-exempt(1) | 1,140,175 |
| 12,523 |
| 4.39 | % | | 1,119,873 |
| 12,456 |
| 4.45 | % | | 1,016,329 |
| 11,909 |
| 4.69 | % |
| Other short-term investments | 342,344 |
| 1,380 |
| 1.53 | % | | 401,764 |
| 1,064 |
| 1.06 | % | | 259,053 |
| 1,639 |
| 2.53 | % |
| Investments and other | 6,446,152 |
| 36,321 |
| 2.25 | % | | 6,381,387 |
| 36,468 |
| 2.29 | % | | 6,480,415 |
| 39,943 |
| 2.47 | % |
| Total earning assets | 26,423,222 |
| $ | 206,721 |
| 3.12 | % | | 26,434,163 |
| $ | 204,752 |
| 3.09 | % | | 25,023,103 |
| $ | 196,959 |
| 3.14 | % |
| Other assets, net | 2,482,062 |
| | | | 2,534,209 |
| | | | 2,434,297 |
| | |
| Total assets | $ | 28,905,284 |
| | | | $ | 28,968,372 |
| | | | $ | 27,457,400 |
| | |
| Liabilities and stockholders' equity | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings | $ | 1,451,803 |
| $ | 198 |
| 0.05 | % | | $ | 1,448,223 |
| $ | 198 |
| 0.05 | % | | $ | 1,358,141 |
| $ | 249 |
| 0.07 | % |
| Interest-bearing demand | 4,140,072 |
| 3,248 |
| 0.31 | % | | 4,151,708 |
| 2,937 |
| 0.28 | % | | 3,150,628 |
| 1,217 |
| 0.15 | % |
| Money market | 9,296,364 |
| 7,269 |
| 0.31 | % | | 9,088,943 |
| 6,956 |
| 0.30 | % | | 9,534,551 |
| 4,351 |
| 0.18 | % |
| Time deposits | 1,560,145 |
| 3,058 |
| 0.78 | % | | 1,553,349 |
| 3,027 |
| 0.78 | % | | 1,604,864 |
| 3,027 |
| 0.75 | % |
| Total interest-bearing deposits | 16,448,384 |
| 13,773 |
| 0.33 | % | | 16,242,223 |
| 13,118 |
| 0.32 | % | | 15,648,184 |
| 8,844 |
| 0.22 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 549,738 |
| 314 |
| 0.23 | % | | 655,825 |
| 326 |
| 0.20 | % | | 605,026 |
| 229 |
| 0.15 | % |
| Other short-term funding | 491,800 |
| 458 |
| 0.37 | % | | 324,623 |
| 296 |
| 0.36 | % | | 368,752 |
| 186 |
| 0.20 | % |
| Total short-term funding | 1,041,538 |
| 772 |
| 0.29 | % | | 980,448 |
| 622 |
| 0.25 | % | | 973,778 |
| 415 |
| 0.17 | % |
| Long-term funding | 2,761,695 |
| 6,875 |
| 0.99 | % | | 3,256,099 |
| 7,229 |
| 0.89 | % | | 2,676,116 |
| 10,692 |
| 1.60 | % |
| Total short and long-term funding | 3,803,233 |
| 7,647 |
| 0.80 | % | | 4,236,547 |
| 7,851 |
| 0.74 | % | | 3,649,894 |
| 11,107 |
| 1.22 | % |
| Total interest-bearing liabilities | 20,251,617 |
| $ | 21,420 |
| 0.42 | % | | 20,478,770 |
| $ | 20,969 |
| 0.41 | % | | 19,298,078 |
| $ | 19,951 |
| 0.41 | % |
| Noninterest-bearing demand deposits | 5,294,078 |
| | | | 5,161,802 |
| | | | 4,967,719 |
| | |
| Other liabilities | 274,829 |
| | | | 281,442 |
| | | | 250,957 |
| | |
| Stockholders’ equity | 3,084,760 |
| | | | 3,046,358 |
| | | | 2,940,646 |
| | |
| Total liabilities and stockholders’ equity | $ | 28,905,284 |
| | | | $ | 28,968,372 |
| | | | $ | 27,457,400 |
| | |
| Interest rate spread | | | 2.70 | % | | | | 2.68 | % | | | | 2.73 | % |
| Net free funds | | | 0.10 | % | | | | 0.09 | % | | | | 0.09 | % |
| Fully tax-equivalent net interest income and net interest margin | | $ | 185,301 |
| 2.80 | % | | | $ | 183,783 |
| 2.77 | % | | | $ | 177,008 |
| 2.82 | % |
| Fully tax-equivalent adjustment | | 5,266 |
| | | | 5,249 |
| | | | 5,540 |
| |
| Net interest income | | $ | 180,035 |
| | | | $ | 178,534 |
| | | | $ | 171,468 |
| |
| |
| (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 |
| | | Years Ended December 31, |
| | | 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 | | $ | 7,395,524 |
| | $ | 238,921 |
| | 3.23 | % | | $ | 7,035,449 |
| | $ | 223,639 |
| | 3.18 | % |
| Commercial real estate lending | | 4,724,412 |
| | 163,421 |
| | 3.46 | % | | 4,222,218 |
| | 146,372 |
| | 3.47 | % |
| Total commercial | | 12,119,936 |
| | 402,342 |
| | 3.32 | % | | 11,257,667 |
| | 370,011 |
| | 3.29 | % |
| Residential mortgage | | 6,156,524 |
| | 194,941 |
| | 3.17 | % | | 5,538,690 |
| | 182,228 |
| | 3.29 | % |
| Retail | | 1,374,207 |
| | 66,053 |
| | 4.81 | % | | 1,455,907 |
| | 67,524 |
| | 4.64 | % |
| Total loans | | 19,650,667 |
| | 663,336 |
| | 3.38 | % | | 18,252,264 |
| | 619,763 |
| | 3.40 | % |
| Investment securities: | | | | | | | | | | | | |
| Taxable | | 4,955,980 |
| | 95,152 |
| | 1.92 | % | | 4,936,065 |
| | 100,292 |
| | 2.03 | % |
Tax-exempt (1) | | 1,092,583 |
| | 49,036 |
| | 4.49 | % | | 976,784 |
| | 47,663 |
| | 4.88 | % |
| Other short-term investments | | 327,431 |
| | 4,829 |
| | 1.45 | % | | 405,974 |
| | 6,591 |
| | 1.62 | % |
| Investments and other | | 6,375,994 |
| | 149,017 |
| | 2.34 | % | | 6,318,823 |
| | 154,546 |
| | 2.45 | % |
| Total earning assets | | 26,026,661 |
| | $ | 812,353 |
| | 3.12 | % | | 24,571,087 |
| | $ | 774,309 |
| | 3.15 | % |
| Other assets, net | | 2,479,451 |
| | | | | | 2,448,129 |
| | | | |
| Total assets | | $ | 28,506,112 |
| | | | | | $ | 27,019,216 |
| | | | |
| Liabilities and stockholders' equity | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | |
| Savings | | $ | 1,428,292 |
| | $ | 860 |
| | 0.06 | % | | $ | 1,336,755 |
| | $ | 1,000 |
| | 0.07 | % |
| Interest-bearing demand | | 3,790,185 |
| | 10,361 |
| | 0.27 | % | | 3,201,085 |
| | 4,266 |
| | 0.13 | % |
| Money market | | 9,127,940 |
| | 26,978 |
| | 0.30 | % | | 9,210,179 |
| | 16,574 |
| | 0.18 | % |
| Time deposits | | 1,553,069 |
| | 12,136 |
| | 0.78 | % | | 1,613,547 |
| | 11,285 |
| | 0.70 | % |
| Total interest-bearing deposits | | 15,899,486 |
| | 50,335 |
| | 0.32 | % | | 15,361,566 |
| | 33,125 |
| | 0.22 | % |
| Federal funds purchased and securities sold under agreements to repurchase | | 609,807 |
| | 1,314 |
| | 0.22 | % | | 625,736 |
| | 943 |
| | 0.15 | % |
| Other short-term funding | | 699,358 |
| | 2,114 |
| | 0.30 | % | | 220,321 |
| | 465 |
| | 0.21 | % |
| Total short-term funding | | 1,309,165 |
| | 3,428 |
| | 0.26 | % | | 846,057 |
| | 1,408 |
| | 0.17 | % |
| Long-term funding | | 2,913,751 |
| | 30,532 |
| | 1.05 | % | | 3,123,224 |
| | 42,851 |
| | 1.37 | % |
| Total short and long-term funding | | 4,222,916 |
| | 33,960 |
| | 0.80 | % | | 3,969,281 |
| | 44,259 |
| | 1.12 | % |
| Total interest-bearing liabilities | | 20,122,402 |
| | $ | 84,295 |
| | 0.42 | % | | 19,330,847 |
| | $ | 77,384 |
| | 0.40 | % |
| Noninterest-bearing demand deposits | | 5,106,286 |
| | | | | | 4,541,521 |
| | | | |
| Other liabilities | | 254,462 |
| | | | | | 251,690 |
| | | | |
| Stockholders’ equity | | 3,022,962 |
| | | | | | 2,895,158 |
| | | | |
| Total liabilities and stockholders’ equity | | $ | 28,506,112 |
| | | | | | $ | 27,019,216 |
| | | | |
| Interest rate spread | | | | | | 2.70 | % | | | | | | 2.75 | % |
| Net free funds | | | | | | 0.10 | % | | | | | | 0.09 | % |
| Fully tax-equivalent net interest income and net interest margin | | | | $ | 728,058 |
| | 2.80 | % | | | | $ | 696,925 |
| | 2.84 | % |
| Fully tax-equivalent adjustment | | | | 20,785 |
| | | | | | 20,647 |
| | |
| Net interest income | | | | $ | 707,273 |
| | | | | | $ | 676,278 |
| | |
| |
| (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 | | Dec 31, 2016 | | Sep 30, 2016 | | Seql Qtr % Change | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,489,014 |
| | $ | 6,721,557 |
| | (3 | )% | | $ | 6,701,986 |
| | $ | 6,511,648 |
| | $ | 6,190,683 |
| | 5 | % |
| Commercial real estate—owner occupied | | 897,724 |
| | 892,678 |
| | 1 | % | | 921,736 |
| | 917,285 |
| | 918,212 |
| | (2 | )% |
| Commercial and business lending | | 7,386,738 |
| | 7,614,235 |
| | (3 | )% | | 7,623,722 |
| | 7,428,933 |
| | 7,108,895 |
| | 4 | % |
| Commercial real estate—investor | | 3,574,732 |
| | 3,530,370 |
| | 1 | % | | 3,495,791 |
| | 3,276,733 |
| | 3,234,266 |
| | 11 | % |
| Real estate construction | | 1,432,497 |
| | 1,314,431 |
| | 9 | % | | 1,285,573 |
| | 1,184,398 |
| | 1,162,145 |
| | 23 | % |
| Commercial real estate lending | | 5,007,229 |
| | 4,844,801 |
| | 3 | % | | 4,781,364 |
| | 4,461,131 |
| | 4,396,411 |
| | 14 | % |
| Total commercial | | 12,393,967 |
| | 12,459,036 |
| | (1 | )% | | 12,405,086 |
| | 11,890,064 |
| | 11,505,306 |
| | 8 | % |
| Residential mortgage | | 6,311,428 |
| | 6,034,166 |
| | 5 | % | | 6,035,720 |
| | 5,944,457 |
| | 5,783,267 |
| | 9 | % |
| Home equity revolving lines of credit | | 840,872 |
| | 851,382 |
| | (1 | )% | | 861,311 |
| | 867,860 |
| | 883,759 |
| | (5 | )% |
| Home equity loans junior liens | | 93,571 |
| | 100,212 |
| | (7 | )% | | 107,460 |
| | 115,134 |
| | 122,043 |
| | (23 | )% |
| Home equity | | 934,443 |
| | 951,594 |
| | (2 | )% | | 968,771 |
| | 982,994 |
| | 1,005,802 |
| | (7 | )% |
| Other consumer | | 393,979 |
| | 399,209 |
| | (1 | )% | | 405,709 |
| | 409,725 |
| | 419,968 |
| | (6 | )% |
| Total consumer | | 7,639,850 |
| | 7,384,969 |
| | 3 | % | | 7,410,200 |
| | 7,337,176 |
| | 7,209,037 |
| | 6 | % |
| Total loans | | $ | 20,033,817 |
| | $ | 19,844,005 |
| | 1 | % | | $ | 19,815,286 |
| | $ | 19,227,240 |
| | $ | 18,714,343 |
| | 7 | % |
| | | | | | | | | | | | | | | |
| Period End Deposit and Customer Funding Composition | | Dec 31, 2016 | | Sep 30, 2016 | | Seql Qtr % Change | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,392,208 |
| | $ | 5,337,677 |
| | 1 | % | | $ | 5,039,336 |
| | $ | 5,272,685 |
| | $ | 5,562,466 |
| | (3 | )% |
| Savings | | 1,431,494 |
| | 1,441,187 |
| | (1 | )% | | 1,451,801 |
| | 1,426,951 |
| | 1,334,420 |
| | 7 | % |
| Interest-bearing demand | | 4,687,656 |
| | 4,548,390 |
| | 3 | % | | 3,789,138 |
| | 3,698,941 |
| | 3,445,000 |
| | 36 | % |
| Money market | | 8,770,963 |
| | 8,894,357 |
| | (1 | )% | | 8,448,543 |
| | 8,718,841 |
| | 9,102,977 |
| | (4 | )% |
| Brokered CDs | | 52,725 |
| | 44,373 |
| | 19 | % | | 46,268 |
| | 41,440 |
| | 42,443 |
| | 24 | % |
| Other time | | 1,553,402 |
| | 1,481,728 |
| | 5 | % | | 1,517,764 |
| | 1,526,602 |
| | 1,520,359 |
| | 2 | % |
| Total deposits | | 21,888,448 |
| | 21,747,712 |
| | 1 | % | | 20,292,850 |
| | 20,685,460 |
| | 21,007,665 |
| | 4 | % |
| Customer funding | | 300,197 |
| | 477,607 |
| | (37 | )% | | 464,880 |
| | 508,262 |
| | 383,568 |
| | (22 | )% |
| Total deposits and customer funding | | $ | 22,188,645 |
| | $ | 22,225,319 |
| | — | % | | $ | 20,757,730 |
| | $ | 21,193,722 |
| | $ | 21,391,233 |
| | 4 | % |
| Network transaction deposits included above in interest-bearing demand & money market | | $ | 3,895,467 |
| | $ | 3,730,513 |
| | 4 | % | | $ | 3,141,214 |
| | $ | 3,399,054 |
| | $ | 3,174,911 |
| | 23 | % |
| Brokered CDs | | 52,725 |
| | 44,373 |
| | 19 | % | | 46,268 |
| | 41,440 |
| | 42,443 |
| | 24 | % |
| Total network and brokered funding | | 3,948,192 |
| | 3,774,886 |
| | 5 | % | | 3,187,482 |
| | 3,440,494 |
| | 3,217,354 |
| | 23 | % |
Net customer deposits and funding(1) | | $ | 18,240,453 |
| | $ | 18,450,433 |
| | (1 | )% | | $ | 17,570,248 |
| | $ | 17,753,228 |
| | $ | 18,173,879 |
| | — | % |
| |
| Quarter Average Loan Composition | | Dec 31, 2016 | | Sep 30, 2016 | | Seql Qtr % Change | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,514,974 |
| | $ | 6,674,688 |
| | (2 | )% | | $ | 6,559,613 |
| | $ | 6,207,458 |
| | $ | 5,947,939 |
| | 10 | % |
| Commercial real estate—owner occupied | | 891,836 |
| | 902,782 |
| | (1 | )% | | 915,020 |
| | 913,603 |
| | 944,223 |
| | (6 | )% |
| Commercial and business lending | | 7,406,810 |
| | 7,577,470 |
| | (2 | )% | | 7,474,633 |
| | 7,121,061 |
| | 6,892,162 |
| | 7 | % |
| Commercial real estate—investor | | 3,546,559 |
| | 3,532,861 |
| | — | % | | 3,448,741 |
| | 3,298,522 |
| | 3,266,008 |
| | 9 | % |
| Real estate construction | | 1,368,084 |
| | 1,322,966 |
| | 3 | % | | 1,205,370 |
| | 1,171,009 |
| | 1,107,452 |
| | 24 | % |
| Commercial real estate lending | | 4,914,643 |
| | 4,855,827 |
| | 1 | % | | 4,654,111 |
| | 4,469,531 |
| | 4,373,460 |
| | 12 | % |
| Total commercial | | 12,321,453 |
| | 12,433,297 |
| | (1 | )% | | 12,128,744 |
| | 11,590,592 |
| | 11,265,622 |
| | 9 | % |
| Residential mortgage | | 6,317,769 |
| | 6,255,264 |
| | 1 | % | | 6,129,924 |
| | 5,920,280 |
| | 5,845,557 |
| | 8 | % |
| Home equity revolving lines of credit | | 845,740 |
| | 857,244 |
| | (1 | )% | | 863,941 |
| | 876,820 |
| | 882,599 |
| | (4 | )% |
| Home equity loans junior liens | | 96,880 |
| | 103,790 |
| | (7 | )% | | 111,372 |
| | 118,610 |
| | 126,658 |
| | (24 | )% |
| Home equity | | 942,620 |
| | 961,034 |
| | (2 | )% | | 975,313 |
| | 995,430 |
| | 1,009,257 |
| | (7 | )% |
| Other consumer | | 395,228 |
| | 403,181 |
| | (2 | )% | | 408,004 |
| | 416,528 |
| | 422,252 |
| | (6 | )% |
| Total consumer | | 7,655,617 |
| | 7,619,479 |
| | — | % | | 7,513,241 |
| | 7,332,238 |
| | 7,277,066 |
| | 5 | % |
| Total loans | | $ | 19,977,070 |
| | $ | 20,052,776 |
| | — | % | | $ | 19,641,985 |
| | $ | 18,922,830 |
| | $ | 18,542,688 |
| | 8 | % |
| | | | | | | | | | | | | | | |
| Quarter Average Deposit Composition | | Dec 31, 2016 | | Sep 30, 2016 | | Seql Qtr % Change | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,294,078 |
| | $ | 5,161,802 |
| | 3 | % | | $ | 4,969,994 |
| | $ | 4,996,596 |
| | $ | 4,967,719 |
| | 7 | % |
| Savings | | 1,451,803 |
| | 1,448,223 |
| | — | % | | 1,445,020 |
| | 1,367,646 |
| | 1,358,141 |
| | 7 | % |
| Interest-bearing demand | | 4,140,072 |
| | 4,151,708 |
| | — | % | | 3,640,733 |
| | 3,220,409 |
| | 3,150,628 |
| | 31 | % |
| Money market | | 9,296,364 |
| | 9,088,943 |
| | 2 | % | | 8,692,782 |
| | 9,432,245 |
| | 9,534,551 |
| | (2 | )% |
| Time deposits | | 1,560,145 |
| | 1,553,349 |
| | — | % | | 1,540,424 |
| | 1,558,278 |
| | 1,604,864 |
| | (3 | )% |
| Total deposits | | $ | 21,742,462 |
| | $ | 21,404,025 |
| | 2 | % | | $ | 20,288,953 |
| | $ | 20,575,174 |
| | $ | 20,615,903 |
| | 5 | % |
| |
| (1) | Total deposits and customer funding excluding total network and brokered funding. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation | | | | | | | |
| ($ in millions) | YTD
Dec 2016 | YTD
Dec 2015 | 4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 |
Tangible Common Equity Reconciliation (1) | | | | | | | |
| Common equity | | | $ | 2,931 |
| $ | 2,937 |
| $ | 2,910 |
| $ | 2,862 |
| $ | 2,816 |
|
| Goodwill and other intangible assets, net | | | (987 | ) | (988 | ) | (988 | ) | (989 | ) | (985 | ) |
| Tangible common equity | | | $ | 1,944 |
| $ | 1,949 |
| $ | 1,922 |
| $ | 1,873 |
| $ | 1,831 |
|
Tangible Assets Reconciliation (1) | | | | | | | |
| Total assets | | | $ | 29,139 |
| $ | 29,153 |
| $ | 29,039 |
| $ | 28,179 |
| $ | 27,712 |
|
| Goodwill and other intangible assets, net | | | (987 | ) | (988 | ) | (988 | ) | (989 | ) | (985 | ) |
| Tangible assets | | | $ | 28,152 |
| $ | 28,165 |
| $ | 28,051 |
| $ | 27,190 |
| $ | 26,727 |
|
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation (1) | | | | | | | |
| Common equity | $ | 2,888 |
| $ | 2,799 |
| $ | 2,925 |
| $ | 2,911 |
| $ | 2,869 |
| $ | 2,849 |
| $ | 2,819 |
|
| Goodwill and other intangible assets, net | (988 | ) | (982 | ) | (988 | ) | (988 | ) | (989 | ) | (989 | ) | (985 | ) |
| Tangible common equity | 1,900 |
| 1,817 |
| 1,937 |
| 1,923 |
| 1,880 |
| 1,860 |
| 1,834 |
|
| Less: Accumulated other comprehensive income / loss | 8 |
| (9 | ) | 28 |
| (3 | ) | 1 |
| 3 |
| 4 |
|
| Less: Deferred tax assets / deferred tax liabilities, net | 32 |
| 26 |
| 33 |
| 33 |
| 32 |
| 33 |
| 34 |
|
| Average common equity Tier 1 | $ | 1,940 |
| $ | 1,834 |
| $ | 1,998 |
| $ | 1,953 |
| $ | 1,913 |
| $ | 1,896 |
| $ | 1,872 |
|
Selected Equity and Performance Ratios (1) (2) | | | | | | | |
| Tangible common equity / tangible assets | | | 6.91 | % | 6.92 | % | 6.85 | % | 6.89 | % | 6.85 | % |
| Return on average equity | 6.63 | % | 6.50 | % | 7.07 | % | 7.03 | % | 6.19 | % | 5.76 | % | 5.77 | % |
| Return on average tangible common equity | 10.07 | % | 9.97 | % | 10.78 | % | 10.68 | % | 10.04 | % | 8.72 | % | 8.78 | % |
| Return on average common equity Tier 1 | 9.86 | % | 9.88 | % | 10.45 | % | 10.52 | % | 9.86 | % | 8.55 | % | 8.60 | % |
Efficiency Ratio Reconciliation (3) | | | | | | | |
| Federal Reserve efficiency ratio | 66.95 | % | 69.96 | % | 65.35 | % | 64.40 | % | 69.34 | % | 69.01 | % | 70.49 | % |
| Fully tax-equivalent adjustment | (1.29 | )% | (1.41 | )% | (1.25 | )% | (1.21 | )% | (1.36 | )% | (1.37 | )% | (1.52 | )% |
| Other intangible amortization | (0.20 | )% | (0.31 | )% | (0.20 | )% | (0.19 | )% | (0.21 | )% | (0.20 | )% | (0.21 | )% |
| Fully tax-equivalent efficiency ratio | 65.46 | % | 68.24 | % | 63.90 | % | 63.00 | % | 67.77 | % | 67.44 | % | 68.76 | % |
| |
| (1) | The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. 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 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. |
| |
| (3) | 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. |
