Exhibit 99.1
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| NEWS RELEASE Investor Contact: Jessica Vanden Heuvel, 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 First Quarter Earnings of $0.35 per share
Earnings per share up 30% from prior year
GREEN BAY, Wis. -- April 20, 2017 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $54 million, or $0.35 per common share for the quarter ended March 31, 2017. This compares to net income available to common equity of $40 million, or $0.27 per common share for the quarter ended March 31, 2016.
“The quarter’s margin expansion coupled with higher residential mortgage and steady commercial real estate loan growth contributed to a 30% year over year increase in earnings per common share. We continued to show progress across our fee businesses while holding expenses flat. Year over year results were also supported by an improving credit environment.” said President and CEO Philip B. Flynn. "We are in a good place - strongly positioned and fully committed to a path of continued disciplined growth. We look forward to delivering against our full year guidance."
FIRST QUARTER SUMMARY
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| • | Average loans of $20.1 billion grew $1.1 billion, or 6% from the year ago quarter |
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| • | Average deposits of $21.5 billion grew $891 million, or 4% from the year ago quarter |
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| • | Net interest income of $180 million increased $8 million, or 5% from the year ago quarter |
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| • | Net interest margin of 2.84% improved from 2.81% in the year ago quarter |
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| • | Provision for credit losses of $9 million decreased $11 million, or 55% from the year ago quarter |
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| • | Noninterest income of $80 million reflected less investment gains from the year ago quarter |
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| • | Noninterest expense was essentially flat at $174 million from the year ago quarter |
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| • | Return on average common equity Tier 1 (CET1) was 10.6% |
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| • | Total dividends per common share of $0.12 were up 9% from the year ago quarter |
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| • | Capital ratios remain strong with a CET1 ratio of 9.9% at quarter end |
FIRST QUARTER FINANCIAL RESULTS
Loans
First quarter average loans of $20.1 billion were up 6%, or $1.1 billion from the year ago quarter and were up $96 million from the fourth quarter.
With respect to first quarter average balances:
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| • | Commercial real estate lending increased 12%, or $530 million from the year ago quarter and grew $85 million from the fourth quarter to $5.0 billion. |
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| • | Consumer lending increased 7%, or $541 million from the year ago quarter and grew $218 million from the fourth quarter to $7.9 billion. |
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| • | Commercial and business lending increased 1%, or $78 million from the year ago quarter to $7.2 billion, but decreased $207 million from the fourth quarter, primarily driven by $200 million of lower mortgage warehouse activity. |
Deposits
First quarter average deposits of $21.5 billion were up 4%, or $891 million from the year ago quarter and were down $277 million from the fourth quarter.
With respect to first quarter average balances:
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| • | Interest-bearing demand deposits increased 32%, or $1.0 billion from the year ago quarter and increased $111 million from the fourth quarter to $4.3 billion. |
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| • | Savings and time deposits increased 5%, or $153 million from the year ago quarter and increased $67 million from the fourth quarter to $3.1 billion. |
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| • | Noninterest-bearing demand deposits decreased 1%, or $31 million from the year ago quarter and decreased $328 million from the fourth quarter to $5.0 billion. |
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| • | Money market deposits decreased 3%, or $263 million from the year ago quarter and decreased $127 million from the fourth quarter to $9.2 billion. |
Net Interest Income and Net Interest Margin
Net interest income was up 5%, or $8 million from the year ago quarter, with net interest margin increasing 3 basis points. First quarter net interest income of $180 million was essentially flat from the fourth quarter as higher yields on loans offset the impact of two fewer days in the quarter. Net interest margin of 2.84% increased 4 basis points from the fourth quarter.
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| • | The average yield on total loans increased to 3.51% from 3.41% in the year ago quarter and increased from 3.40% in the prior quarter. |
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| • | The average cost of interest-bearing deposits increased to 0.42% from 0.30% in the year ago quarter and increased from 0.33% in the prior quarter. |
Noninterest Income
First quarter total noninterest income of $80 million was down 4%, or $3 million from the year ago quarter, reflecting less investment gains. As expected, total noninterest income was down 13%, or $12 million from the prior quarter, primarily related to a shift in the Company's mortgage retention strategy.
With respect to first quarter noninterest income line items:
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| • | Brokerage and annuity commissions were up 14% from the year ago quarter and 3% from the prior quarter primarily due to a stronger market backdrop. |
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| • | Capital market fees were up 10% from the year ago quarter, but decreased $4 million from the fourth quarter primarily due to fewer customer hedging transactions, lower valuation gains, and lower loan syndication activity. |
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| • | Mortgage banking was up 9% from the year ago quarter, but decreased $7 million from the prior quarter reflecting reduced settlements, the Company's increased retention of mortgages on balance sheet, and the Company's switch to fair value accounting for the mortgage pipeline. |
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| • | Insurance commissions were up 1% from the year ago quarter and increased 20% from the prior quarter primarily related to seasonally higher property and casualty insurance revenues. |
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| • | BOLI, asset gains, and investment securities gains were down from both the year ago and prior quarters. |
Noninterest Expense
First quarter total noninterest expense of $174 million was essentially flat compared to the year ago quarter and decreased $5 million, or 3% from the prior quarter.
With respect to first quarter noninterest expense line items:
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| • | Personnel expense was up $3 million from the year ago quarter, but decreased 3% from the prior quarter reflecting increased severance in the fourth quarter. |
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| • | Occupancy expense was up $1 million from the year ago quarter and was up 11% from the prior quarter primarily related to increased snow plowing and higher lease terminations and adjustments. |
Noninterest Expense cont.
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| • | Business development and advertising decreased $2 million from the year ago quarter and decreased 7% from the prior quarter driven by a shift in strategy largely from television to digital advertising. |
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| • | All other noninterest expense line items, collectively, decreased $2 million from the year ago quarter and decreased 6% from the prior quarter. |
Taxes
First quarter income tax expense was $21 million with an effective tax rate of 27%, compared to $19 million and 31% in the year ago quarter, and $24 million and 30% in the prior quarter. The first quarter's lower effective tax rate was due to a change in accounting standards related to stock compensation which lowered income tax expense by $3 million. These tax effects are expected to be higher in the first quarter when the majority of the Company’s restricted stock awards vest.
Credit
First quarter provision for credit losses of $9 million decreased $11 million from the year ago quarter and was down $6 million from the prior quarter.
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| • | Potential problem loans of $340 million were down $61 million from the year ago quarter and down $11 million from the prior quarter. |
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| • | Nonaccrual loans of $260 million were down $26 million from the year ago quarter and down $15 million from the prior quarter. The nonaccrual loans to total loans ratio was 1.29% in the first quarter, compared to 1.49% in the year ago quarter, and 1.37% in the prior quarter. |
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| • | First quarter net charge offs of $6 million were down $11 million from the year ago quarter and down $4 million from the prior quarter. |
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| • | The allowance for loan losses of $283 million was up $5 million from the year ago quarter and was up $4 million from the prior quarter. The allowance for loan losses to total loans ratio was 1.40% in the first quarter, compared to 1.44% in the year ago quarter, and 1.39% in the prior quarter. |
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| • | The allowance related to the oil and gas portfolio was $42 million at March 31, 2017 and represented 6.7% of total oil and gas loans. |
Capital
The Company’s capital position remains strong, with a CET1 ratio of 9.9% at March 31, 2017. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
FIRST QUARTER 2017 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 20, 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 first quarter 2017 earnings call. The first quarter 2017 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) | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr
$ Change | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr
$ Change |
| Assets | | | | | | | |
| Cash and due from banks | $ | 332,601 |
| $ | 446,558 |
| $ | (113,957 | ) | $ | 356,047 |
| $ | 333,000 |
| $ | 287,183 |
| $ | 45,418 |
|
| Interest-bearing deposits in other financial institutions | 337,167 |
| 149,175 |
| 187,992 |
| 240,010 |
| 131,680 |
| 68,025 |
| 269,142 |
|
| Federal funds sold and securities purchased under agreements to resell | 19,700 |
| 46,500 |
| (26,800 | ) | 14,250 |
| 13,200 |
| 20,200 |
| (500 | ) |
| Investment securities held to maturity, at amortized cost | 1,554,843 |
| 1,273,536 |
| 281,307 |
| 1,253,494 |
| 1,236,140 |
| 1,176,821 |
| 378,022 |
|
| Investment securities available for sale, at fair value | 4,300,490 |
| 4,680,226 |
| (379,736 | ) | 4,846,088 |
| 4,801,766 |
| 4,905,841 |
| (605,351 | ) |
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 139,273 |
| 140,001 |
| (728 | ) | 140,215 |
| 194,501 |
| 181,853 |
| (42,580 | ) |
Residential loans held for sale(1) | 34,051 |
| 108,010 |
| (73,959 | ) | 213,883 |
| 253,682 |
| 98,250 |
| (64,199 | ) |
| Commercial loans held for sale | 2,901 |
| 12,474 |
| (9,573 | ) | 16,912 |
| 30,694 |
| 30,089 |
| (27,188 | ) |
| Loans | 20,147,683 |
| 20,054,716 |
| 92,967 |
| 19,844,005 |
| 19,815,286 |
| 19,227,240 |
| 920,443 |
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| Allowance for loan losses | (282,672 | ) | (278,335 | ) | (4,337 | ) | (269,540 | ) | (267,780 | ) | (277,370 | ) | (5,302 | ) |
| Loans, net | 19,865,011 |
| 19,776,381 |
| 88,630 |
| 19,574,465 |
| 19,547,506 |
| 18,949,870 |
| 915,141 |
|
| Premises and equipment, net | 332,884 |
| 330,315 |
| 2,569 |
| 329,726 |
| 331,427 |
| 331,711 |
| 1,173 |
|
| Goodwill | 972,006 |
| 971,951 |
| 55 |
| 971,951 |
| 971,951 |
| 971,951 |
| 55 |
|
| Mortgage servicing rights, net | 60,702 |
| 61,476 |
| (774 | ) | 58,414 |
| 57,474 |
| 59,414 |
| 1,288 |
|
| Other intangible assets, net | 15,026 |
| 15,377 |
| (351 | ) | 15,902 |
| 16,427 |
| 16,966 |
| (1,940 | ) |
| Trading assets | 49,306 |
| 52,398 |
| (3,092 | ) | 60,780 |
| 77,112 |
| 53,087 |
| (3,781 | ) |
| Other assets | 1,093,896 |
| 1,074,937 |
| 18,959 |
| 1,060,627 |
| 1,042,139 |
| 1,027,606 |
| 66,290 |
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| Total assets | $ | 29,109,857 |
| $ | 29,139,315 |
| $ | (29,458 | ) | $ | 29,152,764 |
| $ | 29,038,699 |
| $ | 28,178,867 |
| $ | 930,990 |
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| Liabilities and Stockholders’ Equity | | | | | | | |
| Noninterest-bearing demand deposits | $ | 5,338,212 |
| $ | 5,392,208 |
| $ | (53,996 | ) | $ | 5,337,677 |
| $ | 5,039,336 |
| $ | 5,272,685 |
| $ | 65,527 |
|
| Interest-bearing deposits | 16,489,823 |
| 16,496,240 |
| (6,417 | ) | 16,410,035 |
| 15,253,514 |
| 15,412,775 |
| 1,077,048 |
|
| Total deposits | 21,828,035 |
| 21,888,448 |
| (60,413 | ) | 21,747,712 |
| 20,292,850 |
| 20,685,460 |
| 1,142,575 |
|
| Federal funds purchased and securities sold under agreements to repurchase | 650,188 |
| 508,347 |
| 141,841 |
| 698,772 |
| 509,150 |
| 583,247 |
| 66,941 |
|
| Other short-term funding | 430,679 |
| 583,688 |
| (153,009 | ) | 541,321 |
| 1,402,407 |
| 834,161 |
| (403,482 | ) |
| Long-term funding | 2,761,955 |
| 2,761,795 |
| 160 |
| 2,761,635 |
| 3,511,475 |
| 2,861,316 |
| (99,361 | ) |
| Trading liabilities | 47,561 |
| 51,103 |
| (3,542 | ) | 62,301 |
| 79,466 |
| 55,223 |
| (7,662 | ) |
| Accrued expenses and other liabilities | 246,645 |
| 254,622 |
| (7,977 | ) | 243,908 |
| 213,204 |
| 176,962 |
| 69,683 |
|
| Total liabilities | 25,965,063 |
| 26,048,003 |
| (82,940 | ) | 26,055,649 |
| 26,008,552 |
| 25,196,369 |
| 768,694 |
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| Stockholders’ Equity | | | | | | | |
| Preferred equity | 159,929 |
| 159,929 |
| — |
| 159,929 |
| 120,201 |
| 120,347 |
| 39,582 |
|
| Common equity: | | | | | | | |
| Common stock | 1,630 |
| 1,630 |
| — |
| 1,630 |
| 1,630 |
| 1,630 |
| — |
|
| Surplus | 1,469,744 |
| 1,459,498 |
| 10,246 |
| 1,459,161 |
| 1,453,285 |
| 1,447,368 |
| 22,376 |
|
| Retained earnings | 1,709,514 |
| 1,695,764 |
| 13,750 |
| 1,662,778 |
| 1,629,915 |
| 1,599,835 |
| 109,679 |
|
| Accumulated other comprehensive income (loss) | (56,344 | ) | (54,679 | ) | (1,665 | ) | (1,254 | ) | 13,453 |
| 2,167 |
| (58,511 | ) |
| Treasury stock, at cost | (139,679 | ) | (170,830 | ) | 31,151 |
| (185,129 | ) | (188,337 | ) | (188,849 | ) | 49,170 |
|
| Total common equity | 2,984,865 |
| 2,931,383 |
| 53,482 |
| 2,937,186 |
| 2,909,946 |
| 2,862,151 |
| 122,714 |
|
| Total stockholders’ equity | 3,144,794 |
| 3,091,312 |
| 53,482 |
| 3,097,115 |
| 3,030,147 |
| 2,982,498 |
| 162,296 |
|
| Total liabilities and stockholders’ equity | $ | 29,109,857 |
| $ | 29,139,315 |
| $ | (29,458 | ) | $ | 29,152,764 |
| $ | 29,038,699 |
| $ | 28,178,867 |
| $ | 930,990 |
|
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| (1) | Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. |
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited)—Quarterly Trend |
| | | | | | | Seql Qtr | | | | | | | | Comp Qtr |
| (In thousands, except per share data) | | 1Q17 | | 4Q16 | | $ Change | | % Change | | 3Q16 | | 2Q16 | | 1Q16 | | $ Change | | % Change |
| Interest Income | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 173,649 |
| | $ | 169,473 |
| | $ | 4,176 |
| | 2 | % | | $ | 167,350 |
| | $ | 163,059 |
| | $ | 159,656 |
| | $ | 13,993 |
| | 9 | % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | | | |
| Taxable | | 23,475 |
| | 22,418 |
| | 1,057 |
| | 5 | % | | 22,948 |
| | 24,270 |
| | 25,516 |
| | (2,041 | ) | | (8 | )% |
| Tax-exempt | | 8,129 |
| | 8,184 |
| | (55 | ) | | (1 | )% | | 8,141 |
| | 7,894 |
| | 7,830 |
| | 299 |
| | 4 | % |
| Other interest | | 1,536 |
| | 1,380 |
| | 156 |
| | 11 | % | | 1,064 |
| | 1,318 |
| | 1,067 |
| | 469 |
| | 44 | % |
| Total interest income | | 206,789 |
| | 201,455 |
| | 5,334 |
| | 3 | % | | 199,503 |
| | 196,541 |
| | 194,069 |
| | 12,720 |
| | 7 | % |
| Interest Expense | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | 16,924 |
| | 13,773 |
| | 3,151 |
| | 23 | % | | 13,118 |
| | 11,678 |
| | 11,766 |
| | 5,158 |
| | 44 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | | 515 |
| | 314 |
| | 201 |
| | 64 | % | | 326 |
| | 378 |
| | 296 |
| | 219 |
| | 74 | % |
| Interest on other short-term funding | | 1,080 |
| | 458 |
| | 622 |
| | 136 | % | | 296 |
| | 845 |
| | 515 |
| | 565 |
| | 110 | % |
| Interest on long-term funding | | 7,996 |
| | 6,875 |
| | 1,121 |
| | 16 | % | | 7,229 |
| | 6,923 |
| | 9,505 |
| | (1,509 | ) | | (16 | )% |
| Total interest expense | | 26,515 |
| | 21,420 |
| | 5,095 |
| | 24 | % | | 20,969 |
| | 19,824 |
| | 22,082 |
| | 4,433 |
| | 20 | % |
| Net Interest Income | | 180,274 |
| | 180,035 |
| | 239 |
| | — | % | | 178,534 |
| | 176,717 |
| | 171,987 |
| | 8,287 |
| | 5 | % |
| Provision for credit losses | | 9,000 |
| | 15,000 |
| | (6,000 | ) | | (40 | )% | | 21,000 |
| | 14,000 |
| | 20,000 |
| | (11,000 | ) | | (55 | )% |
| Net interest income after provision for credit losses | | 171,274 |
| | 165,035 |
| | 6,239 |
| | 4 | % | | 157,534 |
| | 162,717 |
| | 151,987 |
| | 19,287 |
| | 13 | % |
| Noninterest Income | | | | | | | | | | | | | | | | | | |
| Trust service fees | | 11,935 |
| | 12,211 |
| | (276 | ) | | (2 | )% | | 11,700 |
| | 11,509 |
| | 11,447 |
| | 488 |
| | 4 | % |
| Service charges on deposit accounts | | 16,356 |
| | 16,447 |
| | (91 | ) | | (1 | )% | | 17,445 |
| | 16,444 |
| | 16,273 |
| | 83 |
| | 1 | % |
Card-based and other nondeposit fees | | 12,465 |
| | 12,592 |
| | (127 | ) | | (1 | )% | | 12,777 |
| | 12,717 |
| | 11,991 |
| | 474 |
| | 4 | % |
| Insurance commissions | | 21,620 |
| | 17,977 |
| | 3,643 |
| | 20 | % | | 19,431 |
| | 22,005 |
| | 21,382 |
| | 238 |
| | 1 | % |
| Brokerage and annuity commissions | | 4,333 |
| | 4,188 |
| | 145 |
| | 3 | % | | 4,155 |
| | 4,098 |
| | 3,794 |
| | 539 |
| | 14 | % |
| Mortgage banking, net | | 4,579 |
| | 11,559 |
| | (6,980 | ) | | (60 | )% | | 18,291 |
| | 4,067 |
| | 4,204 |
| | 375 |
| | 9 | % |
Capital market fees, net | | 3,883 |
| | 7,716 |
| | (3,833 | ) | | (50 | )% | | 7,012 |
| | 3,793 |
| | 3,538 |
| | 345 |
| | 10 | % |
| Bank owned life insurance income | | 2,615 |
| | 3,338 |
| | (723 | ) | | (22 | )% | | 3,290 |
| | 2,973 |
| | 4,770 |
| | (2,155 | ) | | (45 | )% |
| Asset gains (losses), net | | (234 | ) | | 767 |
| | (1,001 | ) | | (131 | )% | | (1,034 | ) | | (343 | ) | | 524 |
| | (758 | ) | | (145 | )% |
| Investment securities gains (losses), net | | — |
| | 3,115 |
| | (3,115 | ) | | (100 | )% | | (13 | ) | | 3,116 |
| | 3,098 |
| | (3,098 | ) | | (100 | )% |
Other | | 2,279 |
| | 2,379 |
| | (100 | ) | | (4 | )% | | 2,180 |
| | 1,789 |
| | 2,171 |
| | 108 |
| | 5 | % |
| Total noninterest income | | 79,831 |
| | 92,289 |
| | (12,458 | ) | | (13 | )% | | 95,234 |
| | 82,168 |
| | 83,192 |
| | (3,361 | ) | | (4 | )% |
| Noninterest Expense | | | | | | | | | | | | | | | | | | |
| Personnel expense | | 104,419 |
| | 107,491 |
| | (3,072 | ) | | (3 | )% | | 103,819 |
| | 102,129 |
| | 101,398 |
| | 3,021 |
| | 3 | % |
| Occupancy | | 15,219 |
| | 13,690 |
| | 1,529 |
| | 11 | % | | 15,362 |
| | 13,215 |
| | 13,802 |
| | 1,417 |
| | 10 | % |
| Equipment | | 5,485 |
| | 5,328 |
| | 157 |
| | 3 | % | | 5,319 |
| | 5,396 |
| | 5,446 |
| | 39 |
| | 1 | % |
| Technology | | 14,420 |
| | 14,413 |
| | 7 |
| | — | % | | 14,173 |
| | 14,450 |
| | 14,264 |
| | 156 |
| | 1 | % |
| Business development and advertising | | 5,835 |
| | 6,298 |
| | (463 | ) | | (7 | )% | | 5,251 |
| | 6,591 |
| | 8,211 |
| | (2,376 | ) | | (29 | )% |
| Other intangible amortization | | 513 |
| | 525 |
| | (12 | ) | | (2 | )% | | 525 |
| | 539 |
| | 504 |
| | 9 |
| | 2 | % |
| Loan expense | | 2,620 |
| | 3,443 |
| | (823 | ) | | (24 | )% | | 3,535 |
| | 3,442 |
| | 3,221 |
| | (601 | ) | | (19 | )% |
| Legal and professional fees | | 4,166 |
| | 5,184 |
| | (1,018 | ) | | (20 | )% | | 4,804 |
| | 4,856 |
| | 5,025 |
| | (859 | ) | | (17 | )% |
| Foreclosure / OREO expense, net | | 1,505 |
| | 677 |
| | 828 |
| | 122 | % | | 960 |
| | 1,330 |
| | 1,877 |
| | (372 | ) | | (20 | )% |
| FDIC expense | | 8,000 |
| | 9,250 |
| | (1,250 | ) | | (14 | )% | | 9,000 |
| | 8,750 |
| | 7,750 |
| | 250 |
| | 3 | % |
| Other | | 11,509 |
| | 12,616 |
| | (1,107 | ) | | (9 | )% | | 12,566 |
| | 13,662 |
| | 12,473 |
| | (964 | ) | | (8 | )% |
| Total noninterest expense | | 173,691 |
| | 178,915 |
| | (5,224 | ) | | (3 | )% | | 175,314 |
| | 174,360 |
| | 173,971 |
| | (280 | ) | | — | % |
| Income before income taxes | | 77,414 |
| | 78,409 |
| | (995 | ) | | (1 | )% | | 77,454 |
| | 70,525 |
| | 61,208 |
| | 16,206 |
| | 26 | % |
| Income tax expense | | 21,144 |
| | 23,576 |
| | (2,432 | ) | | (10 | )% | | 23,638 |
| | 21,434 |
| | 18,674 |
| | 2,470 |
| | 13 | % |
| Net income | | 56,270 |
| | 54,833 |
| | 1,437 |
| | 3 | % | | 53,816 |
| | 49,091 |
| | 42,534 |
| | 13,736 |
| | 32 | % |
| Preferred stock dividends | | 2,330 |
| | 2,348 |
| | (18 | ) | | (1 | )% | | 2,188 |
| | 2,169 |
| | 2,198 |
| | 132 |
| | 6 | % |
| Net income available to common equity | | $ | 53,940 |
| | $ | 52,485 |
| | $ | 1,455 |
| | 3 | % | | $ | 51,628 |
| | $ | 46,922 |
| | $ | 40,336 |
| | $ | 13,604 |
| | 34 | % |
| Earnings Per Common Share: | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.36 |
| | $ | 0.35 |
| | $ | 0.01 |
| | 3 | % | | $ | 0.34 |
| | $ | 0.31 |
| | $ | 0.27 |
| | $ | 0.09 |
| | 33 | % |
| Diluted | | $ | 0.35 |
| | $ | 0.34 |
| | $ | 0.01 |
| | 3 | % | | $ | 0.34 |
| | $ | 0.31 |
| | $ | 0.27 |
| | $ | 0.08 |
| | 30 | % |
| Average Common Shares Outstanding: | | | | | | | | | | | | | | | | | | |
| Basic | | 150,815 |
| | 149,253 |
| | 1,562 |
| | 1 | % | | 148,708 |
| | 148,511 |
| | 148,601 |
| | 2,214 |
| | 1 | % |
| Diluted | | 153,869 |
| | 151,563 |
| | 2,306 |
| | 2 | % | | 149,973 |
| | 149,530 |
| | 149,454 |
| | 4,415 |
| | 3 | % |
| |
|
| | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Quarterly Information | | | | | | |
| ($ in millions, except share and per share, full time equivalent employee data and branch count) | | 1Q17 | 4Q16 | 3Q16 | 2Q16 | 1Q16 |
| Per Common Share Data | | | | | | |
| Dividends | | $ | 0.12 |
| $ | 0.12 |
| $ | 0.11 |
| $ | 0.11 |
| $ | 0.11 |
|
| Market value: | | | | | | |
| High | | 26.50 |
| 25.15 |
| 19.91 |
| 18.84 |
| 18.79 |
|
| Low | | 23.40 |
| 19.05 |
| 16.49 |
| 15.84 |
| 15.48 |
|
| Close | | 24.40 |
| 24.70 |
| 19.59 |
| 17.15 |
| 17.94 |
|
| Book value | | 19.42 |
| 19.27 |
| 19.42 |
| 19.27 |
| 18.96 |
|
| Tangible book value / share | | $ | 13.00 |
| $ | 12.78 |
| $ | 12.89 |
| $ | 12.72 |
| $ | 12.41 |
|
| Performance Ratios (Annualized) | | | | | | |
| Return on average assets | | 0.79 | % | 0.75 | % | 0.74 | % | 0.69 | % | 0.62 | % |
| Effective tax rate | | 27.31 | % | 30.07 | % | 30.52 | % | 30.39 | % | 30.51 | % |
Dividend payout ratio(1) | | 33.33 | % | 34.29 | % | 32.35 | % | 35.48 | % | 40.74 | % |
| Selected Trend Information | | | | | | |
| Average full time equivalent employees | | 4,370 |
| 4,439 |
| 4,477 |
| 4,415 |
| 4,374 |
|
| Branch count | | 215 |
| 217 |
| 217 |
| 215 |
| 215 |
|
| Trust assets under management, at market value | | $ | 8,716 |
| $ | 8,302 |
| $ | 8,179 |
| $ | 7,944 |
| $ | 7,844 |
|
| Mortgage loans originated for sale during period | | $ | 101 |
| $ | 287 |
| $ | 466 |
| $ | 324 |
| $ | 194 |
|
| Mortgage loan settlements during period | | $ | 197 |
| $ | 396 |
| $ | 655 |
| $ | 270 |
| $ | 222 |
|
| Mortgage portfolio serviced for others | | $ | 7,909 |
| $ | 7,975 |
| $ | 8,011 |
| $ | 7,776 |
| $ | 7,877 |
|
| Mortgage servicing rights, net / mortgage portfolio serviced for others | | 0.77 | % | 0.77 | % | 0.73 | % | 0.74 | % | 0.75 | % |
| Shares outstanding, end of period | | 153,734 |
| 152,121 |
| 151,243 |
| 151,036 |
| 150,994 |
|
| Selected Quarterly Ratios | | | | | | |
| Loans / deposits | | 92.30 | % | 91.62 | % | 91.25 | % | 97.65 | % | 92.95 | % |
| Stockholders’ equity / assets | | 10.80 | % | 10.61 | % | 10.62 | % | 10.43 | % | 10.58 | % |
Risk-based Capital (2) (3) | | | | | | |
| Total risk-weighted assets | | $ | 21,121 |
| $ | 21,341 |
| $ | 21,265 |
| $ | 21,168 |
| $ | 20,454 |
|
| Common equity Tier 1 | | $ | 2,085 |
| $ | 2,033 |
| $ | 1,984 |
| $ | 1,941 |
| $ | 1,903 |
|
| Common equity Tier 1 capital ratio | | 9.87 | % | 9.52 | % | 9.33 | % | 9.17 | % | 9.30 | % |
| Tier 1 capital ratio | | 10.63 | % | 10.27 | % | 10.08 | % | 9.73 | % | 9.88 | % |
| Total capital ratio | | 13.05 | % | 12.68 | % | 12.49 | % | 12.16 | % | 12.35 | % |
| Tier 1 leverage ratio | | 8.05 | % | 7.83 | % | 7.64 | % | 7.43 | % | 7.55 | % |
| |
| (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) | March 31, 2017 data is estimated. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information | | | | | | |
| (In thousands) | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | | $ | 278,335 |
| $ | 269,540 |
| 3 | % | | $ | 267,780 |
| $ | 277,370 |
| $ | 274,264 |
| 1 | % |
| Provision for loan losses | | 10,000 |
| 18,000 |
| (44 | )% | | 20,000 |
| 11,000 |
| 20,000 |
| (50 | )% |
| Charge offs | | (11,854 | ) | (11,609 | ) | 2 | % | | (28,964 | ) | (24,621 | ) | (21,245 | ) | (44 | )% |
| Recoveries | | 6,191 |
| 2,404 |
| 158 | % | | 10,724 |
| 4,031 |
| 4,351 |
| 42 | % |
| Net charge offs | | (5,663 | ) | (9,205 | ) | (38 | )% | | (18,240 | ) | (20,590 | ) | (16,894 | ) | (66 | )% |
| Balance at end of period | | $ | 282,672 |
| $ | 278,335 |
| 2 | % | | $ | 269,540 |
| $ | 267,780 |
| $ | 277,370 |
| 2 | % |
| Allowance for Unfunded Commitments | | | | | | | | | |
| Balance at beginning of period | | $ | 25,400 |
| $ | 28,400 |
| (11 | )% | | $ | 27,400 |
| $ | 24,400 |
| $ | 24,400 |
| 4 | % |
| Provision for unfunded commitments | | (1,000 | ) | (3,000 | ) | (67 | )% | | 1,000 |
| 3,000 |
| — |
| N/M |
|
| Balance at end of period | | $ | 24,400 |
| $ | 25,400 |
| (4 | )% | | $ | 28,400 |
| $ | 27,400 |
| $ | 24,400 |
| — | % |
| Allowance for credit losses | | $ | 307,072 |
| $ | 303,735 |
| 1 | % | | $ | 297,940 |
| $ | 295,180 |
| $ | 301,770 |
| 2 | % |
| Provision for credit losses | | $ | 9,000 |
| $ | 15,000 |
| (40 | )% | | $ | 21,000 |
| $ | 14,000 |
| $ | 20,000 |
| (55 | )% |
| Net Charge Offs | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Commercial and industrial | | $ | (4,368 | ) | $ | (6,566 | ) | (33 | )% | | $ | (16,407 | ) | $ | (18,564 | ) | $ | (14,936 | ) | (71 | )% |
| Commercial real estate—owner occupied | | 19 |
| (221 | ) | (109 | )% | | (154 | ) | (20 | ) | (43 | ) | (144 | )% |
| Commercial and business lending | | (4,349 | ) | (6,787 | ) | (36 | )% | | (16,561 | ) | (18,584 | ) | (14,979 | ) | (71 | )% |
| Commercial real estate—investor | | (514 | ) | 5 |
| N/M |
| | (564 | ) | (560 | ) | 1,239 |
| (141 | )% |
| Real estate construction | | 11 |
| (86 | ) | (113 | )% | | (22 | ) | (219 | ) | (28 | ) | (139 | )% |
| Commercial real estate lending | | (503 | ) | (81 | ) | N/M |
| | (586 | ) | (779 | ) | 1,211 |
| (142 | )% |
| Total commercial | | (4,852 | ) | (6,868 | ) | (29 | )% | | (17,147 | ) | (19,363 | ) | (13,768 | ) | (65 | )% |
| Residential mortgage | | (128 | ) | (1,048 | ) | (88 | )% | | (540 | ) | (757 | ) | (1,232 | ) | (90 | )% |
| Home equity revolving lines of credit | | 85 |
| (611 | ) | (114 | )% | | 36 |
| 275 |
| (902 | ) | (109 | )% |
| Home equity loans junior liens | | 88 |
| 120 |
| (27 | )% | | 89 |
| 42 |
| (244 | ) | (136 | )% |
| Home equity | | 173 |
| (491 | ) | (135 | )% | | 125 |
| 317 |
| (1,146 | ) | (115 | )% |
| Other consumer | | (856 | ) | (798 | ) | 7 | % | | (678 | ) | (787 | ) | (748 | ) | 14 | % |
| Total consumer | | (811 | ) | (2,337 | ) | (65 | )% | | (1,093 | ) | (1,227 | ) | (3,126 | ) | (74 | )% |
| Total net charge offs | | $ | (5,663 | ) | $ | (9,205 | ) | (38 | )% | | $ | (18,240 | ) | $ | (20,590 | ) | $ | (16,894 | ) | (66 | )% |
| Net Charge Offs to Average Loans (in basis points)* | | Mar 31, 2017 | Dec 31, 2016 | | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |
| Commercial and industrial | | (28 | ) | (40 | ) | | | (98 | ) | (114 | ) | (97 | ) | |
| Commercial real estate—owner occupied | | 1 |
| (10 | ) | | | (7 | ) | (1 | ) | (2 | ) | |
| Commercial and business lending | | (24 | ) | (36 | ) | | | (87 | ) | (100 | ) | (85 | ) | |
| Commercial real estate—investor | | (6 | ) | N/M |
| | | (6 | ) | (7 | ) | 15 |
| |
| Real estate construction | | N/M |
| (3 | ) | | | (1 | ) | (7 | ) | (1 | ) | |
| Commercial real estate lending | | (4 | ) | (1 | ) | | | (5 | ) | (7 | ) | 11 |
| |
| Total commercial | | (16 | ) | (22 | ) | | | (55 | ) | (64 | ) | (48 | ) | |
| Residential mortgage | | (1 | ) | (7 | ) | | | (3 | ) | (5 | ) | (8 | ) | |
| Home equity revolving lines of credit | | 4 |
| (29 | ) | | | 2 |
| 13 |
| (41 | ) | |
| Home equity loans junior liens | | 39 |
| 49 |
| | | 34 |
| 15 |
| (83 | ) | |
| Home equity | | 8 |
| (21 | ) | | | 5 |
| 13 |
| (46 | ) | |
| Other consumer | | (90 | ) | (80 | ) | | | (67 | ) | (78 | ) | (72 | ) | |
| Total consumer | | (4 | ) | (12 | ) | | | (6 | ) | (7 | ) | (17 | ) | |
| Total net charge offs | | (11 | ) | (18 | ) | | | (36 | ) | (42 | ) | (36 | ) | |
| Credit Quality | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Nonaccrual loans | | $ | 259,991 |
| $ | 275,303 |
| (6 | )% | | $ | 289,911 |
| $ | 282,602 |
| $ | 286,395 |
| (9 | )% |
| Other real estate owned (OREO) | | 7,540 |
| 10,274 |
| (27 | )% | | 14,499 |
| 13,669 |
| 16,056 |
| (53 | )% |
| Other nonperforming assets | | 7,418 |
| 7,418 |
| — | % | | — |
| — |
| — |
| N/M |
|
| Total nonperforming assets | | $ | 274,949 |
| $ | 292,995 |
| (6 | )% | | $ | 304,410 |
| $ | 296,271 |
| $ | 302,451 |
| (9 | )% |
| Loans 90 or more days past due and still accruing | | $ | 1,720 |
| $ | 1,613 |
| 7 | % | | $ | 1,511 |
| $ | 1,494 |
| $ | 1,629 |
| 6 | % |
| Allowance for loan losses to loans | | 1.40 | % | 1.39 | % | | | 1.36 | % | 1.35 | % | 1.44 | % | |
| Allowance for loan losses to nonaccrual loans | | 108.72 | % | 101.10 | % | | | 92.97 | % | 94.76 | % | 96.85 | % | |
| Nonaccrual loans to total loans | | 1.29 | % | 1.37 | % | | | 1.46 | % | 1.43 | % | 1.49 | % | |
| Nonperforming assets to total loans plus OREO | | 1.36 | % | 1.46 | % | | | 1.53 | % | 1.49 | % | 1.57 | % | |
| Nonperforming assets to total assets | | 0.94 | % | 1.01 | % | | | 1.04 | % | 1.02 | % | 1.07 | % | |
| Year-to-date net charge offs to average loans * | | 0.11 | % | 0.33 | % | | | 0.38 | % | 0.39 | % | 0.36 | % | |
| * Annualized | | | | | | | | | |
| N/M = Not meaningful | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information (continued) |
| (in thousands) | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change |
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Nonaccrual loans | | | | | | | | | |
| Commercial and industrial | | $ | 164,891 |
| $ | 183,371 |
| (10 | )% | | $ | 205,902 |
| $ | 193,439 |
| $ | 197,115 |
| (16 | )% |
| Commercial real estate—owner occupied | | 17,925 |
| 9,544 |
| 88 | % | | 6,995 |
| 9,635 |
| 9,443 |
| 90 | % |
| Commercial and business lending | | 182,816 |
| 192,915 |
| (5 | )% | | 212,897 |
| 203,074 |
| 206,558 |
| (11 | )% |
| Commercial real estate—investor | | 8,273 |
| 18,051 |
| (54 | )% | | 8,028 |
| 11,528 |
| 12,330 |
| (33 | )% |
| Real estate construction | | 1,247 |
| 844 |
| 48 | % | | 864 |
| 957 |
| 840 |
| 48 | % |
| Commercial real estate lending | | 9,520 |
| 18,895 |
| (50 | )% | | 8,892 |
| 12,485 |
| 13,170 |
| (28 | )% |
| Total commercial | | 192,336 |
| 211,810 |
| (9 | )% | | 221,789 |
| 215,559 |
| 219,728 |
| (12 | )% |
| Residential mortgage | | 54,183 |
| 50,236 |
| 8 | % | | 53,475 |
| 52,300 |
| 52,212 |
| 4 | % |
| Home equity revolving lines of credit | | 8,817 |
| 8,588 |
| 3 | % | | 9,462 |
| 8,797 |
| 8,822 |
| — | % |
| Home equity loans junior liens | | 4,395 |
| 4,413 |
| — | % | | 4,885 |
| 5,566 |
| 5,250 |
| (16 | )% |
| Home equity | | 13,212 |
| 13,001 |
| 2 | % | | 14,347 |
| 14,363 |
| 14,072 |
| (6 | )% |
| Other consumer | | 260 |
| 256 |
| 2 | % | | 300 |
| 380 |
| 383 |
| (32 | )% |
| Total consumer | | 67,655 |
| 63,493 |
| 7 | % | | 68,122 |
| 67,043 |
| 66,667 |
| 1 | % |
| Total nonaccrual loans | | $ | 259,991 |
| $ | 275,303 |
| (6 | )% | | $ | 289,911 |
| $ | 282,602 |
| $ | 286,395 |
| (9 | )% |
| | | | | | | | | | |
| Restructured loans (accruing) | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Commercial and industrial | | $ | 30,852 |
| $ | 31,884 |
| (3 | )% | | $ | 30,248 |
| $ | 29,179 |
| $ | 28,908 |
| 7 | % |
| Commercial real estate—owner occupied | | 5,532 |
| 5,490 |
| 1 | % | | 7,445 |
| 7,509 |
| 7,693 |
| (28 | )% |
| Commercial and business lending | | 36,384 |
| 37,374 |
| (3 | )% | | 37,693 |
| 36,688 |
| 36,601 |
| (1 | )% |
| Commercial real estate—investor | | 14,563 |
| 15,289 |
| (5 | )% | | 15,352 |
| 20,191 |
| 20,993 |
| (31 | )% |
| Real estate construction | | 327 |
| 359 |
| (9 | )% | | 365 |
| 372 |
| 386 |
| (15 | )% |
| Commercial real estate lending | | 14,890 |
| 15,648 |
| (5 | )% | | 15,717 |
| 20,563 |
| 21,379 |
| (30 | )% |
| Total commercial | | 51,274 |
| 53,022 |
| (3 | )% | | 53,410 |
| 57,251 |
| 57,980 |
| (12 | )% |
| Residential mortgage | | 18,535 |
| 18,100 |
| 2 | % | | 18,049 |
| 18,314 |
| 19,807 |
| (6 | )% |
| Home equity revolving lines of credit | | 683 |
| 555 |
| 23 | % | | 585 |
| 576 |
| 1,377 |
| (50 | )% |
| Home equity loans junior liens | | 7,526 |
| 7,201 |
| 5 | % | | 7,100 |
| 6,379 |
| 5,540 |
| 36 | % |
| Home equity | | 8,209 |
| 7,756 |
| 6 | % | | 7,685 |
| 6,955 |
| 6,917 |
| 19 | % |
| Other consumer | | 1,041 |
| 979 |
| 6 | % | | 926 |
| 906 |
| 893 |
| 17 | % |
| Total consumer | | 27,785 |
| 26,835 |
| 4 | % | | 26,660 |
| 26,175 |
| 27,617 |
| 1 | % |
| Total restructured loans (accruing) | | $ | 79,059 |
| $ | 79,857 |
| (1 | )% | | $ | 80,070 |
| $ | 83,426 |
| $ | 85,597 |
| (8 | )% |
| Restructured loans included in nonaccrual loans (not included with restructed loans (accruing)) | | $ | 78,902 |
| $ | 29,385 |
| 169 | % | | $ | 31,758 |
| $ | 34,841 |
| $ | 35,232 |
| 124 | % |
| | | | | | | | | | |
| Accruing Loans 30-89 Days Past Due | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Commercial and industrial | | $ | 1,675 |
| $ | 1,413 |
| 19 | % | | $ | 950 |
| $ | 2,124 |
| $ | 2,901 |
| (42 | )% |
| Commercial real estate—owner occupied | | 970 |
| 1,384 |
| (30 | )% | | 869 |
| 193 |
| 520 |
| 87 | % |
| Commercial and business lending | | 2,645 |
| 2,797 |
| (5 | )% | | 1,819 |
| 2,317 |
| 3,421 |
| (23 | )% |
| Commercial real estate—investor | | 1,122 |
| 931 |
| 21 | % | | 630 |
| 2,715 |
| 1,072 |
| 5 | % |
| Real estate construction | | 431 |
| 369 |
| 17 | % | | 402 |
| 524 |
| 415 |
| 4 | % |
| Commercial real estate lending | | 1,553 |
| 1,300 |
| 19 | % | | 1,032 |
| 3,239 |
| 1,487 |
| 4 | % |
| Total commercial | | 4,198 |
| 4,097 |
| 2 | % | | 2,851 |
| 5,556 |
| 4,908 |
| (14 | )% |
| Residential mortgage | | 7,243 |
| 8,142 |
| (11 | )% | | 6,697 |
| 7,382 |
| 3,594 |
| 102 | % |
| Home equity revolving lines of credit | | 3,332 |
| 4,219 |
| (21 | )% | | 4,137 |
| 6,075 |
| 3,582 |
| (7 | )% |
| Home equity loans junior liens | | 1,180 |
| 1,630 |
| (28 | )% | | 1,336 |
| 1,655 |
| 2,222 |
| (47 | )% |
| Home equity | | 4,512 |
| 5,849 |
| (23 | )% | | 5,473 |
| 7,730 |
| 5,804 |
| (22 | )% |
| Other consumer | | 1,658 |
| 3,189 |
| (48 | )% | | 2,046 |
| 1,895 |
| 1,682 |
| (1 | )% |
| Total consumer | | 13,413 |
| 17,180 |
| (22 | )% | | 14,216 |
| 17,007 |
| 11,080 |
| 21 | % |
| Total accruing loans 30-89 days past due | | $ | 17,611 |
| $ | 21,277 |
| (17 | )% | | $ | 17,067 |
| $ | 22,563 |
| $ | 15,988 |
| 10 | % |
| | | | | | | | | | |
| Potential Problem Loans | | Mar 31, 2017 | Dec 31, 2016 | Seql Qtr % Change | | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Comp Qtr % Change |
| Commercial and industrial | | $ | 218,930 |
| $ | 227,196 |
| (4 | )% | | $ | 351,290 |
| $ | 379,818 |
| $ | 328,464 |
| (33 | )% |
| Commercial real estate—owner occupied | | 58,994 |
| 64,524 |
| (9 | )% | | 47,387 |
| 45,671 |
| 41,107 |
| 44 | % |
| Commercial and business lending | | 277,924 |
| 291,720 |
| (5 | )% | | 398,677 |
| 425,489 |
| 369,571 |
| (25 | )% |
| Commercial real estate—investor | | 49,217 |
| 51,228 |
| (4 | )% | | 36,765 |
| 25,081 |
| 25,385 |
| 94 | % |
| Real estate construction | | 10,141 |
| 2,465 |
| N/M |
| | 1,929 |
| 2,117 |
| 2,422 |
| N/M |
|
| Commercial real estate lending | | 59,358 |
| 53,693 |
| 11 | % | | 38,694 |
| 27,198 |
| 27,807 |
| 113 | % |
| Total commercial | | 337,282 |
| 345,413 |
| (2 | )% | | 437,371 |
| 452,687 |
| 397,378 |
| (15 | )% |
| Residential mortgage | | 2,155 |
| 5,615 |
| (62 | )% | | 3,226 |
| 3,953 |
| 3,488 |
| (38 | )% |
| Home equity revolving lines of credit | | 46 |
| 46 |
| — | % | | 46 |
| 62 |
| 48 |
| (4 | )% |
| Home equity loans junior liens | | 174 |
| 68 |
| 156 | % | | 32 |
| 32 |
| 161 |
| 8 | % |
| Home equity | | 220 |
| 114 |
| 93 | % | | 78 |
| 94 |
| 209 |
| 5 | % |
| Total consumer | | 2,375 |
| 5,729 |
| (59 | )% | | 3,304 |
| 4,047 |
| 3,697 |
| (36 | )% |
| Total potential problem loans | | $ | 339,657 |
| $ | 351,142 |
| (3 | )% | | $ | 440,675 |
| $ | 456,734 |
| $ | 401,075 |
| (15 | )% |
| N/M = Not meaningful | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis—Fully Tax-Equivalent Basis — Sequential and Comparable Quarter | | | | |
| | Quarter ended, |
| | March 31, 2017 | | December 31, 2016 | | March 31, 2016 |
| (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 | $ | 7,199,481 |
| $ | 60,680 |
| 3.42 | % | | $ | 7,406,810 |
| $ | 61,501 |
| 3.30 | % | | $ | 7,121,061 |
| $ | 57,291 |
| 3.23 | % |
| Commercial real estate lending | 4,999,994 |
| 45,135 |
| 3.66 | % | | 4,914,643 |
| 42,663 |
| 3.45 | % | | 4,469,531 |
| 38,989 |
| 3.51 | % |
| Total commercial | 12,199,475 |
| 105,815 |
| 3.52 | % | | 12,321,453 |
| 104,164 |
| 3.36 | % | | 11,590,592 |
| 96,280 |
| 3.34 | % |
| Residential mortgage | 6,564,600 |
| 53,306 |
| 3.25 | % | | 6,317,769 |
| 49,557 |
| 3.14 | % | | 5,920,280 |
| 47,748 |
| 3.23 | % |
| Retail | 1,308,650 |
| 15,450 |
| 4.74 | % | | 1,337,848 |
| 16,679 |
| 4.98 | % | | 1,411,958 |
| 16,607 |
| 4.71 | % |
| Total loans | 20,072,725 |
| 174,571 |
| 3.51 | % | | 19,977,070 |
| 170,400 |
| 3.40 | % | | 18,922,830 |
| 160,635 |
| 3.41 | % |
| Investment securities: | | | | | | | | | | | |
| Taxable | 4,830,421 |
| 23,475 |
| 1.94 | % | | 4,963,633 |
| 22,418 |
| 1.81 | % | | 5,034,072 |
| 25,516 |
| 2.03 | % |
Tax-exempt(1) | 1,138,010 |
| 12,438 |
| 4.37 | % | | 1,140,175 |
| 12,523 |
| 4.39 | % | | 1,045,210 |
| 11,980 |
| 4.58 | % |
| Other short-term investments | 298,158 |
| 1,536 |
| 2.08 | % | | 342,344 |
| 1,380 |
| 1.61 | % | | 270,261 |
| 1,067 |
| 1.59 | % |
| Investments and other | 6,266,589 |
| 37,449 |
| 2.39 | % | | 6,446,152 |
| 36,321 |
| 2.25 | % | | 6,349,543 |
| 38,563 |
| 2.43 | % |
| Total earning assets | 26,339,314 |
| $ | 212,020 |
| 3.24 | % | | 26,423,222 |
| $ | 206,721 |
| 3.12 | % | | 25,272,373 |
| $ | 199,198 |
| 3.16 | % |
| Other assets, net | 2,441,013 |
| | | | 2,482,062 |
| | | | 2,426,475 |
| | |
| Total assets | $ | 28,780,327 |
| | | | $ | 28,905,284 |
| | | | $ | 27,698,848 |
| | |
| Liabilities and stockholders' equity | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings | $ | 1,465,811 |
| $ | 188 |
| 0.05 | % | | $ | 1,451,803 |
| $ | 198 |
| 0.05 | % | | $ | 1,367,646 |
| $ | 236 |
| 0.07 | % |
| Interest-bearing demand | 4,251,357 |
| 4,210 |
| 0.40 | % | | 4,140,072 |
| 3,248 |
| 0.31 | % | | 3,220,409 |
| 2,032 |
| 0.25 | % |
| Money market | 9,169,141 |
| 9,388 |
| 0.42 | % | | 9,296,364 |
| 7,269 |
| 0.31 | % | | 9,432,245 |
| 6,444 |
| 0.27 | % |
| Time deposits | 1,613,331 |
| 3,138 |
| 0.79 | % | | 1,560,145 |
| 3,058 |
| 0.78 | % | | 1,558,278 |
| 3,054 |
| 0.79 | % |
| Total interest-bearing deposits | 16,499,640 |
| 16,924 |
| 0.42 | % | | 16,448,384 |
| 13,773 |
| 0.33 | % | | 15,578,578 |
| 11,766 |
| 0.30 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 495,311 |
| 515 |
| 0.42 | % | | 549,738 |
| 314 |
| 0.23 | % | | 559,459 |
| 296 |
| 0.21 | % |
| Other short-term funding | 683,306 |
| 1,080 |
| 0.64 | % | | 491,800 |
| 458 |
| 0.37 | % | | 777,898 |
| 515 |
| 0.27 | % |
| Total short-term funding | 1,178,617 |
| 1,595 |
| 0.55 | % | | 1,041,538 |
| 772 |
| 0.29 | % | | 1,337,357 |
| 811 |
| 0.24 | % |
| Long-term funding | 2,761,850 |
| 7,996 |
| 1.17 | % | | 2,761,695 |
| 6,875 |
| 0.99 | % | | 2,582,538 |
| 9,505 |
| 1.47 | % |
| Total short and long-term funding | 3,940,467 |
| 9,591 |
| 0.98 | % | | 3,803,233 |
| 7,647 |
| 0.80 | % | | 3,919,895 |
| 10,316 |
| 1.05 | % |
| Total interest-bearing liabilities | 20,440,107 |
| $ | 26,515 |
| 0.52 | % | | 20,251,617 |
| $ | 21,420 |
| 0.42 | % | | 19,498,473 |
| $ | 22,082 |
| 0.45 | % |
| Noninterest-bearing demand deposits | 4,966,082 |
| | | | 5,294,078 |
| | | | 4,996,596 |
| | |
| Other liabilities | 250,747 |
| | | | 274,829 |
| | | | 233,029 |
| | |
| Stockholders’ equity | 3,123,391 |
| | | | 3,084,760 |
| | | | 2,970,750 |
| | |
| Total liabilities and stockholders’ equity | $ | 28,780,327 |
| | | | $ | 28,905,284 |
| | | | $ | 27,698,848 |
| | |
| Interest rate spread | | | 2.72 | % | | | | 2.70 | % | | | | 2.71 | % |
| Net free funds | | | 0.12 | % | | | | 0.10 | % | | | | 0.10 | % |
| Fully tax-equivalent net interest income and net interest margin | | $ | 185,505 |
| 2.84 | % | | | $ | 185,301 |
| 2.80 | % | | | $ | 177,116 |
| 2.81 | % |
| Fully tax-equivalent adjustment | | 5,231 |
| | | | 5,266 |
| | | | 5,129 |
| |
| Net interest income | | $ | 180,274 |
| | | | $ | 180,035 |
| | | | $ | 171,987 |
| |
| |
| (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 | | Mar 31, 2017 | | Dec 31, 2016 | | Seql Qtr % Change | | Sep 30, 2016 | | Jun 30, 2016 | | Mar 31, 2016 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,300,646 |
| | $ | 6,489,014 |
| | (3 | )% | | $ | 6,721,557 |
| | $ | 6,701,986 |
| | $ | 6,511,648 |
| | (3 | )% |
| Commercial real estate—owner occupied | | 878,391 |
| | 897,724 |
| | (2 | )% | | 892,678 |
| | 921,736 |
| | 917,285 |
| | (4 | )% |
| Commercial and business lending | | 7,179,037 |
| | 7,386,738 |
| | (3 | )% | | 7,614,235 |
| | 7,623,722 |
| | 7,428,933 |
| | (3 | )% |
| Commercial real estate—investor | | 3,415,355 |
| | 3,574,732 |
| | (4 | )% | | 3,530,370 |
| | 3,495,791 |
| | 3,276,733 |
| | 4 | % |
| Real estate construction | | 1,553,205 |
| | 1,432,497 |
| | 8 | % | | 1,314,431 |
| | 1,285,573 |
| | 1,184,398 |
| | 31 | % |
| Commercial real estate lending | | 4,968,560 |
| | 5,007,229 |
| | (1 | )% | | 4,844,801 |
| | 4,781,364 |
| | 4,461,131 |
| | 11 | % |
| Total commercial | | 12,147,597 |
| | 12,393,967 |
| | (2 | )% | | 12,459,036 |
| | 12,405,086 |
| | 11,890,064 |
| | 2 | % |
| Residential mortgage | | 6,715,282 |
| | 6,332,327 |
| | 6 | % | | 6,034,166 |
| | 6,035,720 |
| | 5,944,457 |
| | 13 | % |
| Home equity revolving lines of credit | | 823,594 |
| | 840,872 |
| | (2 | )% | | 851,382 |
| | 861,311 |
| | 867,860 |
| | (5 | )% |
| Home equity loans junior liens | | 88,375 |
| | 93,571 |
| | (6 | )% | | 100,212 |
| | 107,460 |
| | 115,134 |
| | (23 | )% |
| Home equity | | 911,969 |
| | 934,443 |
| | (2 | )% | | 951,594 |
| | 968,771 |
| | 982,994 |
| | (7 | )% |
| Other consumer | | 372,835 |
| | 393,979 |
| | (5 | )% | | 399,209 |
| | 405,709 |
| | 409,725 |
| | (9 | )% |
| Total consumer | | 8,000,086 |
| | 7,660,749 |
| | 4 | % | | 7,384,969 |
| | 7,410,200 |
| | 7,337,176 |
| | 9 | % |
| Total loans | | $ | 20,147,683 |
| | $ | 20,054,716 |
| | — | % | | $ | 19,844,005 |
| | $ | 19,815,286 |
| | $ | 19,227,240 |
| | 5 | % |
| | | | | | | | | | | | | | | |
| Period End Deposit and Customer Funding Composition | | Mar 31, 2017 | | Dec 31, 2016 | | Seql Qtr % Change | | Sep 30, 2016 | | Jun 30, 2016 | | Mar 31, 2016 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,338,212 |
| | $ | 5,392,208 |
| | (1 | )% | | $ | 5,337,677 |
| | $ | 5,039,336 |
| | $ | 5,272,685 |
| | 1 | % |
| Savings | | 1,530,155 |
| | 1,431,494 |
| | 7 | % | | 1,441,187 |
| | 1,451,801 |
| | 1,426,951 |
| | 7 | % |
| Interest-bearing demand | | 4,736,236 |
| | 4,687,656 |
| | 1 | % | | 4,548,390 |
| | 3,789,138 |
| | 3,698,941 |
| | 28 | % |
| Money market | | 8,608,523 |
| | 8,770,963 |
| | (2 | )% | | 8,894,357 |
| | 8,448,543 |
| | 8,718,841 |
| | (1 | )% |
| Brokered CDs | | 54,993 |
| | 52,725 |
| | 4 | % | | 44,373 |
| | 46,268 |
| | 41,440 |
| | 33 | % |
| Other time | | 1,559,916 |
| | 1,553,402 |
| | — | % | | 1,481,728 |
| | 1,517,764 |
| | 1,526,602 |
| | 2 | % |
| Total deposits | | 21,828,035 |
| | 21,888,448 |
| | — | % | | 21,747,712 |
| | 20,292,850 |
| | 20,685,460 |
| | 6 | % |
| Customer funding | | 326,823 |
| | 300,197 |
| | 9 | % | | 477,607 |
| | 464,880 |
| | 508,262 |
| | (36 | )% |
| Total deposits and customer funding | | $ | 22,154,858 |
| | $ | 22,188,645 |
| | — | % | | $ | 22,225,319 |
| | $ | 20,757,730 |
| | $ | 21,193,722 |
| | 5 | % |
Network transactions deposits (1) | | $ | 3,417,380 |
| | $ | 3,895,467 |
| | (12 | )% | | $ | 3,730,513 |
| | $ | 3,141,214 |
| | $ | 3,399,054 |
| | 1 | % |
| Total deposits and customer funding, excluding Brokered CDs and network transaction deposits | | $ | 18,682,485 |
| | $ | 18,240,453 |
| | 2 | % | | $ | 18,450,433 |
| | $ | 17,570,248 |
| | $ | 17,753,228 |
| | 5 | % |
| |
| Quarter Average Loan Composition | | Mar 31, 2017 | | Dec 31, 2016 | | Seql Qtr % Change | | Sep 30, 2016 | | Jun 30, 2016 | | Mar 31, 2016 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 6,313,389 |
| | $ | 6,514,974 |
| | (3 | )% | | $ | 6,674,688 |
| | $ | 6,559,613 |
| | $ | 6,207,458 |
| | 2 | % |
| Commercial real estate—owner occupied | | 886,092 |
| | 891,836 |
| | (1 | )% | | 902,782 |
| | 915,020 |
| | 913,603 |
| | (3 | )% |
| Commercial and business lending | | 7,199,481 |
| | 7,406,810 |
| | (3 | )% | | 7,577,470 |
| | 7,474,633 |
| | 7,121,061 |
| | 1 | % |
| Commercial real estate—investor | | 3,502,769 |
| | 3,546,559 |
| | (1 | )% | | 3,532,861 |
| | 3,448,741 |
| | 3,298,522 |
| | 6 | % |
| Real estate construction | | 1,497,225 |
| | 1,368,084 |
| | 9 | % | | 1,322,966 |
| | 1,205,370 |
| | 1,171,009 |
| | 28 | % |
| Commercial real estate lending | | 4,999,994 |
| | 4,914,643 |
| | 2 | % | | 4,855,827 |
| | 4,654,111 |
| | 4,469,531 |
| | 12 | % |
| Total commercial | | 12,199,475 |
| | 12,321,453 |
| | (1 | )% | | 12,433,297 |
| | 12,128,744 |
| | 11,590,592 |
| | 5 | % |
| Residential mortgage | | 6,564,600 |
| | 6,317,769 |
| | 4 | % | | 6,255,264 |
| | 6,129,924 |
| | 5,920,280 |
| | 11 | % |
| Home equity revolving lines of credit | | 833,032 |
| | 845,740 |
| | (2 | )% | | 857,244 |
| | 863,941 |
| | 876,820 |
| | (5 | )% |
| Home equity loans junior liens | | 90,864 |
| | 96,880 |
| | (6 | )% | | 103,790 |
| | 111,372 |
| | 118,610 |
| | (23 | )% |
| Home equity | | 923,896 |
| | 942,620 |
| | (2 | )% | | 961,034 |
| | 975,313 |
| | 995,430 |
| | (7 | )% |
| Other consumer | | 384,754 |
| | 395,228 |
| | (3 | )% | | 403,181 |
| | 408,004 |
| | 416,528 |
| | (8 | )% |
| Total consumer | | 7,873,250 |
| | 7,655,617 |
| | 3 | % | | 7,619,479 |
| | 7,513,241 |
| | 7,332,238 |
| | 7 | % |
| Total loans | | $ | 20,072,725 |
| | $ | 19,977,070 |
| | — | % | | $ | 20,052,776 |
| | $ | 19,641,985 |
| | $ | 18,922,830 |
| | 6 | % |
| | | | | | | | | | | | | | | |
| Quarter Average Deposit Composition | | Mar 31, 2017 | | Dec 31, 2016 | | Seql Qtr % Change | | Sep 30, 2016 | | Jun 30, 2016 | | Mar 31, 2016 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 4,966,082 |
| | $ | 5,294,078 |
| | (6 | )% | | $ | 5,161,802 |
| | $ | 4,969,994 |
| | $ | 4,996,596 |
| | (1 | )% |
| Savings | | 1,465,811 |
| | 1,451,803 |
| | 1 | % | | 1,448,223 |
| | 1,445,020 |
| | 1,367,646 |
| | 7 | % |
| Interest-bearing demand | | 4,251,357 |
| | 4,140,072 |
| | 3 | % | | 4,151,708 |
| | 3,640,733 |
| | 3,220,409 |
| | 32 | % |
| Money market | | 9,169,141 |
| | 9,296,364 |
| | (1 | )% | | 9,088,943 |
| | 8,692,782 |
| | 9,432,245 |
| | (3 | )% |
| Time deposits | | 1,613,331 |
| | 1,560,145 |
| | 3 | % | | 1,553,349 |
| | 1,540,424 |
| | 1,558,278 |
| | 4 | % |
| Total deposits | | $ | 21,465,722 |
| | $ | 21,742,462 |
| | (1 | )% | | $ | 21,404,025 |
| | $ | 20,288,953 |
| | $ | 20,575,174 |
| | 4 | % |
| |
| (1) | Included above in interest-bearing demand and money market. |
|
| | | | | | | | | | | | | | | |
Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation | | | | | |
| ($ in millions) | 1Q17 | 4Q16 | 3Q16 | 2Q16 | 1Q16 |
Tangible Common Equity Reconciliation (1) | | | | | |
| Common equity | $ | 2,985 |
| $ | 2,931 |
| $ | 2,937 |
| $ | 2,910 |
| $ | 2,862 |
|
| Goodwill and other intangible assets, net | (987 | ) | (987 | ) | (988 | ) | (988 | ) | (989 | ) |
| Tangible common equity | $ | 1,998 |
| $ | 1,944 |
| $ | 1,949 |
| $ | 1,922 |
| $ | 1,873 |
|
Tangible Assets Reconciliation (1) | | | | | |
| Total assets | $ | 29,110 |
| $ | 29,139 |
| $ | 29,153 |
| $ | 29,039 |
| $ | 28,179 |
|
| Goodwill and other intangible assets, net | (987 | ) | (987 | ) | (988 | ) | (988 | ) | (989 | ) |
| Tangible assets | $ | 28,123 |
| $ | 28,152 |
| $ | 28,165 |
| $ | 28,051 |
| $ | 27,190 |
|
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation (1) | | | | | |
| Common equity | $ | 2,963 |
| $ | 2,925 |
| $ | 2,911 |
| $ | 2,869 |
| $ | 2,849 |
|
| Goodwill and other intangible assets, net | (987 | ) | (988 | ) | (988 | ) | (989 | ) | (989 | ) |
| Tangible common equity | 1,976 |
| 1,937 |
| 1,923 |
| 1,880 |
| 1,860 |
|
| Less: Accumulated other comprehensive income / loss | 54 |
| 28 |
| (3 | ) | 1 |
| 3 |
|
| Less: Deferred tax assets / deferred tax liabilities, net | 32 |
| 33 |
| 33 |
| 32 |
| 33 |
|
| Average common equity Tier 1 | $ | 2,062 |
| $ | 1,998 |
| $ | 1,953 |
| $ | 1,913 |
| $ | 1,896 |
|
Selected Equity and Performance Ratios (1) (2) | | | | | |
| Tangible common equity / tangible assets | 7.10 | % | 6.91 | % | 6.92 | % | 6.85 | % | 6.89 | % |
| Return on average equity | 7.31 | % | 7.07 | % | 7.03 | % | 6.19 | % | 5.76 | % |
| Return on average tangible common equity | 11.07 | % | 10.78 | % | 10.68 | % | 10.04 | % | 8.72 | % |
| Return on average common equity Tier 1 | 10.61 | % | 10.45 | % | 10.52 | % | 9.86 | % | 8.55 | % |
Efficiency Ratio Reconciliation (3) | | | | | |
| Federal Reserve efficiency ratio | 66.39 | % | 65.35 | % | 64.40 | % | 69.34 | % | 69.01 | % |
| Fully tax-equivalent adjustment | (1.30 | )% | (1.25 | )% | (1.21 | )% | (1.36 | )% | (1.37 | )% |
| Other intangible amortization | (0.20 | )% | (0.20 | )% | (0.19 | )% | (0.21 | )% | (0.20 | )% |
| Fully tax-equivalent efficiency ratio | 64.89 | % | 63.90 | % | 63.00 | % | 67.77 | % | 67.44 | % |
| |
| (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. |
