Exhibit 99.1
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| NEWS RELEASE Investor Contact: Robb Timme, Senior Vice President, Director of Investor Relations 920-491-7059 Media Contact: Jennifer Kaminski, Vice President, Public Relations Senior Manager 920-491-7576 |
Associated Banc-Corp Reports First Quarter 2019 Earnings of $0.50 Per Common Share,
Earnings per share up 25% from the prior year
GREEN BAY, Wis. -- April 25, 2019 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $83 million, or $0.50 per common share for the quarter ended March 31, 2019. These amounts compare to net income available to common equity of $67 million, or $0.40 per common share for the quarter ended March 31, 2018.
“We were pleased with our commercial and business lending results in the quarter as we had solid growth in our general commercial line and across most of our specialty lending verticals. This growth, coupled with effective cost controls and improving fee income, helped drive a 25% increase in earnings per share compared to the first quarter of 2018," said President and CEO Philip B. Flynn. "We remain optimistic for the remainder of 2019. We expect continued growth in our C&I portfolio and anticipate that our commercial real estate book will begin to ramp up in the second half of the year. Additionally, we believe the Huntington Bank branch acquisition, which is scheduled to close in June, will help us manage our funding costs this year."
FIRST QUARTER 2019 SUMMARY (all comparisons to the first quarter of 2018)
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| • | Average loans of $23.1 billion were up 5%, or $1.0 billion |
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| • | Average deposits of $24.6 billion were up 4%, or $0.9 billion |
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| • | Net interest income of $216 million increased $6 million, or 3% |
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| • | Net interest margin of 2.90% declined 2 basis points from 2.92% |
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| • | Provision for credit losses was $6 million, up from zero |
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| • | Noninterest income of $91 million increased 1%, or $1 million |
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| • | Noninterest expense of $192 million was down 10%, or $21 million |
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| • | Income before income taxes was up 25%, or $22 million |
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| • | During the quarter, the Company repurchased over 1 million shares, or $30 million, of common stock |
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| • | Total dividends paid per common share were $0.17, up 13% |
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| • | Return on average common equity Tier 1 increased to 13.6% from 11.4% |
Loans
First quarter 2019 average loans of $23.1 billion were up $1.0 billion, or 5%, from the year ago quarter, and were up $299 million from the fourth quarter of 2018 as growth in commercial and business lending outpaced run-off in the commercial real estate portfolio.
With respect to first quarter 2019 average balances by loan category:
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| • | Commercial and business lending increased $1.1 billion from the year ago quarter and increased $357 million from the fourth quarter of 2018 to $8.4 billion. General commercial lending and power & utilities specialized lending drove the increase from the year ago quarter. |
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| • | Consumer lending increased $244 million from the year ago quarter and increased $34 million from the fourth quarter of 2018 to $9.6 billion. |
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| • | Commercial real estate lending decreased $282 million from the year ago quarter and decreased $92 million from the fourth quarter of 2018 to $5.1 billion as paydown activity continued to be elevated. |
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| • | The Company has over $500 million in construction commitments that are expected to fund over the course of the year. |
Deposits
First quarter 2019 average deposits of $24.6 billion were up $905 million, or 4% from the year ago quarter and were up $326 million compared to the fourth quarter of 2018. First quarter period end deposits were $25.5 billion, up $636 million from the end of the fourth quarter.
With respect to first quarter 2019 average balances by deposit category:
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| • | Time deposits increased $407 million from the year ago quarter and increased $61 million from the fourth quarter of 2018 to $3.1 billion. |
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| • | Savings increased $376 million from the year ago quarter and increased $104 million from the fourth quarter of 2018 to $2.1 billion. |
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| • | Interest-bearing demand deposits increased $236 million from the year ago quarter, but decreased $98 million from the fourth quarter of 2018 to $4.7 billion. |
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| • | Money market deposits increased $173 million from the year ago quarter and increased $299 million from the fourth quarter of 2018 to $7.4 billion. |
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| • | Noninterest-bearing demand deposits decreased $102 million from the year ago quarter and decreased $384 million from the fourth quarter of 2018 to $5.0 billion as the company experienced its typical seasonal outflow of deposits. |
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| • | Network transaction deposits decreased $184 million from the year ago quarter, but increased $344 million from the fourth quarter of 2018 to $2.2 billion. |
Net Interest Income and Net Interest Margin
First quarter 2019 net interest income of $216 million was up 3%, or $6 million, while the net interest margin decreased 2 basis points to 2.90% from the year ago quarter. First quarter 2019 net interest income decreased 4%, or $8 million, and the net interest margin decreased 12 basis points from the prior quarter, primarily due to reduced prepayments.
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| • | The average yield on total commercial loans for the first quarter of 2019 increased 64 basis points to 4.98% from the year ago quarter, but decreased 9 basis points from the prior quarter. |
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| • | The average cost of total interest-bearing deposits for the first quarter of 2019 increased 57 basis points to 1.30% from the year ago quarter and increased 16 basis points from the prior quarter. |
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| • | The net free funds benefit, which is the net margin increase from noninterest-bearing deposits, increased 12 basis points in the first quarter of 2019 compared to the year ago quarter and was unchanged from the prior quarter. |
Noninterest Income
First quarter 2019 total noninterest income of $91 million increased $1 million from the year ago quarter and increased $7 million from the prior quarter.
With respect to first quarter 2019 noninterest income line items:
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| • | Insurance revenues were up $3 million from the year ago quarter, driven by the acquisitions of Diversified Insurance Solutions and Anderson Insurance, and were up $4 million compared to the previous quarter due to seasonally higher property and casualty revenues. |
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| • | Service charges and deposit account fees were down $1 million from both the year ago quarter and the previous quarter. |
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| • | Mortgage banking revenues were down $2 million from the year ago quarter, but were up $1 million from the previous quarter. |
Noninterest Expense
First quarter 2019 total noninterest expense of $192 million decreased 10%, or $21 million from the year ago quarter and decreased $1 million from the prior quarter. The year ago quarter included $21 million of Bank Mutual acquisition related costs.
With respect to first quarter 2019 noninterest expense line items:
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| • | Personnel expense increased $2 million from the year ago quarter, and increased $4 million from the prior quarter due primarily to seasonal increases in stock-based compensation expense. |
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| • | Occupancy expense increased $1 million from the year ago quarter and increased $2 million from the prior quarter due to higher snow removal expense. |
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| • | Technology expense increased $1 million from the year ago quarter and the prior quarter as the company continued to make investments to enhance its online and mobile product offerings. |
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| • | With the removal of the FDIC surcharge, the Company's FDIC assessment decreased $5 million from the year ago quarter and $2 million from the prior quarter. |
Taxes
The first quarter 2019 effective tax rate was 21% compared to 20% in the year ago quarter and 22% in the prior quarter.
Credit
The first quarter 2019 provision for credit losses was $6 million, up from zero in the year ago quarter and up from $1 million in the prior quarter. With respect to first quarter 2019 credit quality:
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| • | Potential problem loans of $241 million were down $41 million from the year ago quarter and were down $9 million from the prior quarter. |
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| • | Nonaccrual loans of $156 million were down $53 million from the year ago quarter, primarily due to improvements in commercial credits. While nonaccrual loans were up $28 million from the prior quarter, primarily due to migration in commercial credits, they remained flat with third quarter 2018 levels. The nonaccrual loans to total loans ratio was 0.67% in the first quarter, compared to 0.91% in the year ago quarter and 0.56% in the prior quarter. |
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| • | Net charge offs of $7 million were down $2 million from the year ago quarter and up $7 million from the prior quarter. |
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| • | The allowance for loan losses of $235 million was down $22 million from the year ago quarter and was down $3 million from the prior quarter. The allowance for loan losses to total loans ratio was 1.02% in the first quarter of 2019, compared to 1.13% in the year ago quarter, and 1.04% in the prior quarter. |
Capital
The Company’s capital position remains strong, with a CET1 capital ratio of 10.3% at March 31, 2019. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
During the quarter, the Company repurchased over 1 million shares, or $30 million, of common stock at an average price of $22.93 per share.
FIRST QUARTER 2019 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 25, 2019. 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 2019 earnings call. The first quarter 2019 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 nearly $34 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 more than 230 banking locations serving more than 110 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,” "target," “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. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
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Associated Banc-Corp
Consolidated Balance Sheets (Unaudited) | | | | | | |
| (In thousands) | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr $ Change | Sept 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr $ Change |
| Assets | | | | | | | |
| Cash and due from banks | $ | 334,095 |
| $ | 507,187 |
| $ | (173,092 | ) | $ | 374,168 |
| $ | 396,761 |
| $ | 328,260 |
| $ | 5,835 |
|
| Interest-bearing deposits in other financial institutions | 270,843 |
| 221,226 |
| 49,617 |
| 147,848 |
| 71,462 |
| 94,918 |
| 175,925 |
|
| Federal funds sold and securities purchased under agreements to resell | 41,405 |
| 148,285 |
| (106,880 | ) | 24,325 |
| 3,150 |
| 10,000 |
| 31,405 |
|
| Investment securities held to maturity, at amortized cost | 2,846,689 |
| 2,740,511 |
| 106,178 |
| 2,661,755 |
| 2,602,247 |
| 2,443,203 |
| 403,486 |
|
| Investment securities available for sale, at fair value | 3,829,388 |
| 3,946,941 |
| (117,553 | ) | 4,052,624 |
| 4,260,037 |
| 4,484,275 |
| (654,887 | ) |
| Equity securities with readily determinable fair values | 1,609 |
| 1,568 |
| 41 |
| 1,573 |
| 1,613 |
| 1,599 |
| 10 |
|
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 216,940 |
| 250,534 |
| (33,594 | ) | 220,825 |
| 249,040 |
| 233,216 |
| (16,276 | ) |
| Residential loans held for sale | 81,392 |
| 64,321 |
| 17,071 |
| 134,361 |
| 143,022 |
| 103,953 |
| (22,561 | ) |
| Commercial loans held for sale | 15,467 |
| 14,943 |
| 524 |
| 30,452 |
| — |
| 6,091 |
| 9,376 |
|
| Loans | 23,148,359 |
| 22,940,429 |
| 207,930 |
| 22,867,112 |
| 22,976,786 |
| 22,810,491 |
| 337,868 |
|
| Allowance for loan losses | (235,081 | ) | (238,023 | ) | 2,942 |
| (236,250 | ) | (252,601 | ) | (257,058 | ) | 21,977 |
|
| Loans, net | 22,913,278 |
| 22,702,406 |
| 210,872 |
| 22,630,861 |
| 22,724,184 |
| 22,553,433 |
| 359,845 |
|
| Bank and corporate owned life insurance | 665,976 |
| 663,203 |
| 2,773 |
| 661,009 |
| 659,592 |
| 657,841 |
| 8,135 |
|
| Investment in unconsolidated subsidiaries | 194,670 |
| 161,181 |
| 33,489 |
| 156,878 |
| 161,676 |
| 166,124 |
| 28,546 |
|
| Trading assets | 77,920 |
| 88,943 |
| (11,023 | ) | 140,328 |
| 132,919 |
| 102,890 |
| (24,970 | ) |
| Premises and equipment | 361,668 |
| 363,225 |
| (1,557 | ) | 358,926 |
| 361,385 |
| 381,327 |
| (19,659 | ) |
| Goodwill | 1,168,944 |
| 1,169,023 |
| (79 | ) | 1,168,922 |
| 1,166,665 |
| 1,153,156 |
| 15,788 |
|
| Mortgage servicing rights, net | 66,626 |
| 68,193 |
| (1,567 | ) | 67,872 |
| 66,980 |
| 66,407 |
| 219 |
|
| Other intangible assets, net | 73,610 |
| 75,836 |
| (2,226 | ) | 78,069 |
| 80,346 |
| 79,714 |
| (6,104 | ) |
| Other assets | 540,346 |
| 460,331 |
| 80,015 |
| 578,206 |
| 571,566 |
| 500,099 |
| 40,247 |
|
| Total assets | $ | 33,700,866 |
| $ | 33,647,859 |
| $ | 53,007 |
| $ | 33,489,002 |
| $ | 33,652,647 |
| $ | 33,366,505 |
| $ | 334,361 |
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| Liabilities and stockholders’ equity | | | | | | | |
| Noninterest-bearing demand deposits | $ | 5,334,154 |
| $ | 5,698,530 |
| $ | (364,376 | ) | $ | 5,421,270 |
| $ | 5,341,361 |
| $ | 5,458,473 |
| $ | (124,319 | ) |
| Interest-bearing deposits | 20,198,903 |
| 19,198,863 |
| 1,000,040 |
| 19,410,342 |
| 18,474,953 |
| 18,367,129 |
| 1,831,774 |
|
| Total deposits | 25,533,057 |
| 24,897,393 |
| 635,664 |
| 24,831,612 |
| 23,816,314 |
| 23,825,602 |
| 1,707,455 |
|
| Federal funds purchased and securities sold under agreements to repurchase | 127,098 |
| 111,651 |
| 15,447 |
| 166,556 |
| 203,733 |
| 283,954 |
| (156,856 | ) |
| Commercial paper | 32,019 |
| 45,423 |
| (13,404 | ) | 43,604 |
| 52,791 |
| 82,420 |
| (50,401 | ) |
| FHLB advances | 2,944,769 |
| 3,574,371 |
| (629,602 | ) | 3,332,655 |
| 4,797,857 |
| 4,515,887 |
| (1,571,118 | ) |
| Other long-term funding | 796,007 |
| 795,611 |
| 396 |
| 795,215 |
| 497,619 |
| 497,451 |
| 298,556 |
|
| Trading liabilities | 77,859 |
| 87,668 |
| (9,809 | ) | 138,940 |
| 131,612 |
| 100,247 |
| (22,388 | ) |
| Accrued expenses and other liabilities | 354,188 |
| 354,855 |
| (667 | ) | 383,381 |
| 382,476 |
| 348,246 |
| 5,942 |
|
| Total liabilities | 29,864,996 |
| 29,866,971 |
| (1,975 | ) | 29,691,963 |
| 29,882,403 |
| 29,653,806 |
| 211,190 |
|
Stockholders’ equity(a) | | | | | | | |
| Preferred equity | 256,716 |
| 256,716 |
| — |
| 256,716 |
| 159,401 |
| 159,853 |
| 96,863 |
|
| Common equity | | | | | | | |
| Common stock | 1,752 |
| 1,752 |
| — |
| 1,752 |
| 1,751 |
| 1,741 |
| 11 |
|
| Surplus | 1,689,792 |
| 1,712,615 |
| (22,823 | ) | 1,709,078 |
| 1,704,587 |
| 1,698,521 |
| (8,729 | ) |
| Retained earnings | 2,235,824 |
| 2,181,414 |
| 54,410 |
| 2,128,490 |
| 2,070,872 |
| 2,010,746 |
| 225,078 |
|
| Accumulated other comprehensive income (loss) | (103,375 | ) | (124,972 | ) | 21,597 |
| (135,520 | ) | (119,888 | ) | (107,673 | ) | 4,298 |
|
| Treasury stock, at cost | (244,840 | ) | (246,638 | ) | 1,798 |
| (163,478 | ) | (46,479 | ) | (50,488 | ) | (194,352 | ) |
| Total common equity | 3,579,153 |
| 3,524,171 |
| 54,982 |
| 3,540,322 |
| 3,610,843 |
| 3,552,847 |
| 26,306 |
|
| Total stockholders’ equity | 3,835,870 |
| 3,780,888 |
| 54,982 |
| 3,797,038 |
| 3,770,244 |
| 3,712,699 |
| 123,171 |
|
| Total liabilities and stockholders’ equity | $ | 33,700,866 |
| $ | 33,647,859 |
| $ | 53,007 |
| $ | 33,489,002 |
| $ | 33,652,647 |
| $ | 33,366,505 |
| $ | 334,361 |
|
Numbers may not sum due to rounding.
(a) An adjustment of $115 million was made within stockholders' equity related to the grant and vesting of options, restricted stock awards, and restricted stock units awarded from 2006-2017 to the March 31, 2018 ending balances. This adjustment impacted Retained Earnings and Surplus. The reclassification had no impact on earnings, expenses, or total stockholder’s equity.
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend |
| (In thousands, except per share data) | | | | | Seql Qtr | | | | | | | | Comp Qtr |
| 1Q19 | | 4Q18 | | $ Change | | % Change | | 3Q18 | | 2Q18 | | 1Q18 | | $ Change | | % Change |
| Interest income | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | $ | 258,853 |
| | $ | 260,661 |
| | $ | (1,808 | ) | | (1 | )% | | $ | 249,649 |
| | $ | 246,646 |
| | $ | 220,034 |
| | $ | 38,819 |
| | 18 | % |
| Interest and dividends on investment securities | | | | | | | | | | | | | | | | | |
| Taxable | 29,053 |
| | 29,119 |
| | (66 | ) | | — | % | | 29,895 |
| | 30,623 |
| | 30,104 |
| | (1,051 | ) | | (3 | )% |
| Tax-exempt | 13,816 |
| | 12,899 |
| | 917 |
| | 7 | % | | 11,883 |
| | 10,783 |
| | 9,217 |
| | 4,599 |
| | 50 | % |
| Other interest | 4,226 |
| | 3,257 |
| | 969 |
| | 30 | % | | 4,036 |
| | 3,153 |
| | 2,177 |
| | 2,049 |
| | 94 | % |
| Total interest income | 305,948 |
| | 305,936 |
| | 12 |
| | — | % | | 295,464 |
| | 291,205 |
| | 261,532 |
| | 44,416 |
| | 17 | % |
| Interest expense | | | | | | | | | | | | | | | | | |
| Interest on deposits | 62,773 |
| | 54,159 |
| | 8,614 |
| | 16 | % | | 50,116 |
| | 38,431 |
| | 33,412 |
| | 29,361 |
| | 88 | % |
| Interest on Federal funds purchased and securities sold under agreements to repurchase | 627 |
| | 442 |
| | 185 |
| | 42 | % | | 504 |
| | 538 |
| | 522 |
| | 105 |
| | 20 | % |
| Interest on other short-term funding | 51 |
| | 36 |
| | 15 |
| | 42 | % | | 38 |
| | 51 |
| | 60 |
| | (9 | ) | | (15 | )% |
| Interest on FHLB advances | 19,554 |
| | 19,948 |
| | (394 | ) | | (2 | )% | | 19,318 |
| | 21,279 |
| | 13,123 |
| | 6,431 |
| | 49 | % |
| Interest on long-term funding | 7,396 |
| | 7,396 |
| | — |
| | — | % | | 6,095 |
| | 4,544 |
| | 4,544 |
| | 2,852 |
| | 63 | % |
| Total interest expense | 90,401 |
| | 81,980 |
| | 8,421 |
| | 10 | % | | 76,072 |
| | 64,843 |
| | 51,661 |
| | 38,740 |
| | 75 | % |
| Net interest income | 215,547 |
| | 223,955 |
| | (8,408 | ) | | (4 | )% | | 219,392 |
| | 226,362 |
| | 209,871 |
| | 5,676 |
| | 3 | % |
| Provision for credit losses | 6,000 |
| | 1,000 |
| | 5,000 |
| | N/M |
| | (5,000 | ) | | 4,000 |
| | — |
| | 6,000 |
| | N/M |
|
| Net interest income after provision for credit losses | 209,547 |
| | 222,955 |
| | (13,408 | ) | | (6 | )% | | 224,392 |
| | 222,362 |
| | 209,871 |
| | (324 | ) | | — | % |
| Noninterest income | | | | | | | | | | | | | | | | | |
| Insurance commissions and fees | 25,464 |
| | 21,232 |
| | 4,232 |
| | 20 | % | | 21,636 |
| | 23,996 |
| | 22,648 |
| | 2,816 |
| | 12 | % |
Wealth management fees (a) | 20,180 |
| | 20,364 |
| | (184 | ) | | (1 | )% | | 21,224 |
| | 20,333 |
| | 20,642 |
| | (462 | ) | | (2 | )% |
| Service charges and deposit account fees | 15,115 |
| | 16,361 |
| | (1,246 | ) | | (8 | )% | | 16,904 |
| | 16,390 |
| | 16,420 |
| | (1,305 | ) | | (8 | )% |
| Card-based fees | 9,261 |
| | 10,316 |
| | (1,055 | ) | | (10 | )% | | 9,783 |
| | 10,115 |
| | 9,442 |
| | (181 | ) | | (2 | )% |
| Other fee-based revenue | 3,983 |
| | 5,260 |
| | (1,277 | ) | | (24 | )% | | 4,307 |
| | 4,272 |
| | 3,980 |
| | 3 |
| | — | % |
| Capital markets, net | 3,189 |
| | 4,931 |
| | (1,742 | ) | | (35 | )% | | 5,099 |
| | 4,783 |
| | 5,306 |
| | (2,117 | ) | | (40 | )% |
| Mortgage banking, net | 4,712 |
| | 3,271 |
| | 1,441 |
| | 44 | % | | 4,012 |
| | 6,258 |
| | 6,370 |
| | (1,658 | ) | | (26 | )% |
| Bank and corporate owned life insurance | 3,792 |
| | 3,247 |
| | 545 |
| | 17 | % | | 3,540 |
| | 3,978 |
| | 3,187 |
| | 605 |
| | 19 | % |
Asset gains (losses), net (b) | 567 |
| | (2,456 | ) | | 3,023 |
| | N/M |
| | (1,037 | ) | | 2,497 |
| | (107 | ) | | 674 |
| | N/M |
|
| Investment securities gains (losses), net | 1,680 |
| | — |
| | 1,680 |
| | N/M |
| | 30 |
| | (2,015 | ) | | — |
| | 1,680 |
| | N/M |
|
| Other | 3,260 |
| | 1,522 |
| | 1,738 |
| | 114 | % | | 2,802 |
| | 2,235 |
| | 2,492 |
| | 768 |
| | 31 | % |
| Total noninterest income | 91,202 |
| | 84,046 |
| | 7,156 |
| | 9 | % | | 88,300 |
| | 92,842 |
| | 90,380 |
| | 822 |
| | 1 | % |
| Noninterest expense | | | | | | | | | | | | | | | | | |
| Personnel | 120,050 |
| | 116,535 |
| | 3,515 |
| | 3 | % | | 124,476 |
| | 123,980 |
| | 117,685 |
| | 2,365 |
| | 2 | % |
| Technology | 19,012 |
| | 17,944 |
| | 1,068 |
| | 6 | % | | 17,563 |
| | 19,452 |
| | 17,715 |
| | 1,297 |
| | 7 | % |
| Occupancy | 16,472 |
| | 14,174 |
| | 2,298 |
| | 16 | % | | 14,519 |
| | 15,071 |
| | 15,357 |
| | 1,115 |
| | 7 | % |
| Business development and advertising | 6,636 |
| | 8,950 |
| | (2,314 | ) | | (26 | )% | | 8,213 |
| | 7,067 |
| | 6,693 |
| | (57 | ) | | (1 | )% |
| Equipment | 5,668 |
| | 5,897 |
| | (229 | ) | | (4 | )% | | 5,838 |
| | 5,953 |
| | 5,556 |
| | 112 |
| | 2 | % |
| Legal and professional | 3,951 |
| | 5,888 |
| | (1,937 | ) | | (33 | )% | | 5,476 |
| | 6,284 |
| | 5,413 |
| | (1,462 | ) | | (27 | )% |
| Card issuance costs | 977 |
| | 1,442 |
| | (465 | ) | | (32 | )% | | 2,247 |
| | 2,412 |
| | 2,332 |
| | (1,355 | ) | | (58 | )% |
| Loan costs | 1,364 |
| | 790 |
| | 574 |
| | 73 | % | | 1,430 |
| | 761 |
| | 972 |
| | 392 |
| | 40 | % |
| Foreclosure / OREO expense, net | 567 |
| | 909 |
| | (342 | ) | | (38 | )% | | 950 |
| | 1,021 |
| | 723 |
| | (156 | ) | | (22 | )% |
| FDIC assessment | 3,750 |
| | 5,750 |
| | (2,000 | ) | | (35 | )% | | 7,750 |
| | 8,250 |
| | 8,250 |
| | (4,500 | ) | | (55 | )% |
| Other intangible amortization | 2,226 |
| | 2,233 |
| | (7 | ) | | — | % | | 2,233 |
| | 2,168 |
| | 1,525 |
| | 701 |
| | 46 | % |
Acquisition related costs (c) | 632 |
| | (981 | ) | | 1,613 |
| | N/M |
| | 2,271 |
| | 7,107 |
| | 20,605 |
| | (19,973 | ) | | (97 | )% |
| Other | 10,366 |
| | 13,632 |
| | (3,266 | ) | | (24 | )% | | 11,445 |
| | 11,732 |
| | 10,140 |
| | 226 |
| | 2 | % |
| Total noninterest expense | 191,671 |
| | 193,163 |
| | (1,492 | ) | | (1 | )% | | 204,413 |
| | 211,258 |
| | 212,965 |
| | (21,294 | ) | | (10 | )% |
| Income before income taxes | 109,078 |
| | 113,839 |
| | (4,761 | ) | | (4 | )% | | 108,279 |
| | 103,947 |
| | 87,285 |
| | 21,793 |
| | 25 | % |
| Income tax expense | 22,392 |
| | 24,854 |
| | (2,462 | ) | | (10 | )% | | 22,349 |
| | 14,754 |
| | 17,829 |
| | 4,563 |
| | 26 | % |
| Net income | 86,686 |
| | 88,985 |
| | (2,299 | ) | | (3 | )% | | 85,929 |
| | 89,192 |
| | 69,456 |
| | 17,230 |
| | 25 | % |
| Preferred stock dividends | 3,801 |
| | 3,707 |
| | 94 |
| | 3 | % | | 2,409 |
| | 2,329 |
| | 2,339 |
| | 1,462 |
| | 63 | % |
| Net income available to common equity | $ | 82,885 |
| | $ | 85,278 |
| | $ | (2,393 | ) | | (3 | )% | | $ | 83,521 |
| | $ | 86,863 |
| | $ | 67,117 |
| | $ | 15,768 |
| | 23 | % |
| Earnings per common share | | | | | | | | | | | | | | | | | |
| Basic | $ | 0.50 |
| | $ | 0.52 |
| | $ | (0.02 | ) | | (4 | )% | | $ | 0.49 |
| | $ | 0.51 |
| | $ | 0.41 |
| | $ | 0.09 |
| | 22 | % |
| Diluted | $ | 0.50 |
| | $ | 0.51 |
| | $ | (0.01 | ) | | (2 | )% | | $ | 0.48 |
| | $ | 0.50 |
| | $ | 0.40 |
| | $ | 0.10 |
| | 25 | % |
| Average common shares outstanding | | | | | | | | | | | | | | | | | |
| Basic | 163,928 |
| | 164,662 |
| | (734 | ) | | — | % | | 170,516 |
| | 170,633 |
| | 163,520 |
| | 408 |
| | — | % |
| Diluted | 165,433 |
| | 166,394 |
| | (961 | ) | | (1 | )% | | 172,802 |
| | 173,409 |
| | 166,432 |
| | (999 | ) | | (1 | )% |
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Includes trust, asset management, brokerage, and annuity fees.
| |
| (b) | 3Q18 and 2Q18 include approximately $1 million of Bank Mutual acquisition related asset losses net of asset gains. |
| |
| (c) | Includes Bank Mutual and Huntington acquisition related costs only. |
|
| | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Quarterly Information | | | | | |
| (In millions, except per share, full time equivalent employee and branch count data; shares in thousands) | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 |
| Per common share data | | | | | |
| Dividends | $ | 0.17 |
| $ | 0.17 |
| $ | 0.15 |
| $ | 0.15 |
| $ | 0.15 |
|
| Market value: | | | | | |
| High | 23.67 |
| 26.55 |
| 28.35 |
| 28.85 |
| 26.90 |
|
| Low | 19.77 |
| 18.72 |
| 26.00 |
| 24.20 |
| 23.60 |
|
| Close | 21.35 |
| 19.79 |
| 26.00 |
| 27.30 |
| 24.85 |
|
| Book value | 21.77 |
| 21.43 |
| 21.06 |
| 20.95 |
| 20.78 |
|
| Tangible book value / share | 14.21 |
| 13.86 |
| 13.64 |
| 13.71 |
| 13.57 |
|
| Performance ratios (annualized) | | | | | |
| Return on average assets | 1.05 | % | 1.07 | % | 1.02 | % | 1.07 | % | 0.88 | % |
| Effective tax rate | 20.53 | % | 21.83 | % | 20.64 | % | 14.19 | % | 20.43 | % |
Dividend payout ratio (a) | 34.00 | % | 32.69 | % | 30.61 | % | 29.41 | % | 36.59 | % |
| Net interest margin | 2.90 | % | 3.02 | % | 2.92 | % | 3.02 | % | 2.92 | % |
| Selected trend information | | | | | |
Average full time equivalent employees (b) | 4,660 |
| 4,659 |
| 4,707 |
| 4,792 |
| 4,637 |
|
| Branch count | 233 |
| 236 |
| 236 |
| 237 |
| 271 |
|
Assets under management, at market value (c) | $ | 11,192 |
| $ | 10,291 |
| $ | 11,206 |
| $ | 10,776 |
| $ | 10,540 |
|
| Mortgage loans originated for sale during period | $ | 163 |
| $ | 245 |
| $ | 331 |
| $ | 319 |
| $ | 198 |
|
| Mortgage loan settlements during period | $ | 160 |
| $ | 305 |
| $ | 345 |
| $ | 294 |
| $ | 188 |
|
| Mortgage portfolio serviced for others | $ | 8,543 |
| $ | 8,601 |
| $ | 8,547 |
| $ | 8,501 |
| $ | 8,507 |
|
| Mortgage servicing rights, net / mortgage portfolio serviced for others | 0.78 | % | 0.79 | % | 0.79 | % | 0.79 | % | 0.78 | % |
| Shares repurchased during period | 1,308 |
| 3,764 |
| 4,349 |
| 249 |
| 1,108 |
|
| Shares outstanding, end of period | 164,418 |
| 164,440 |
| 168,138 |
| 172,358 |
| 170,995 |
|
| Selected quarterly ratios | | | | | |
| Loans / deposits | 90.66 | % | 92.14 | % | 92.09 | % | 96.47 | % | 95.74 | % |
| Stockholders’ equity / assets | 11.38 | % | 11.24 | % | 11.34 | % | 11.20 | % | 11.13 | % |
Risk-based capital (d) (e) | | | | | |
| Total risk-weighted assets | $ | 24,141 |
| $ | 23,875 |
| $ | 23,907 |
| $ | 24,059 |
| $ | 23,535 |
|
| Common equity Tier 1 | $ | 2,485 |
| $ | 2,450 |
| $ | 2,475 |
| $ | 2,528 |
| $ | 2,474 |
|
| Common equity Tier 1 capital ratio | 10.29 | % | 10.26 | % | 10.35 | % | 10.51 | % | 10.51 | % |
| Tier 1 capital ratio | 11.35 | % | 11.33 | % | 11.42 | % | 11.17 | % | 11.19 | % |
| Total capital ratio | 13.46 | % | 13.47 | % | 13.56 | % | 13.36 | % | 13.45 | % |
| Tier 1 leverage ratio | 8.49 | % | 8.48 | % | 8.43 | % | 8.32 | % | 8.48 | % |
| Loans | | | | | |
| Recorded investment on loans | $ | 23,078 |
| $ | 22,872 |
| $ | 22,800 |
| $ | 22,916 |
| $ | 22,756 |
|
| Net unaccreted Bank Mutual purchase discount on performing loans | (16 | ) | (18 | ) | (21 | ) | (26 | ) | (34 | ) |
| Net other deferred costs | 86 |
| 87 |
| 87 |
| 87 |
| 88 |
|
| Loans | $ | 23,148 |
| $ | 22,940 |
| $ | 22,867 |
| $ | 22,977 |
| $ | 22,810 |
|
Numbers may not sum due to rounding.
| |
| (a) | Ratio is based upon basic earnings per common share. |
| |
| (b) | Average full time equivalent employees without overtime. |
| |
| (c) | Excludes assets held in brokerage accounts. |
| |
| (d) | 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. |
| |
| (e) | March 31, 2019 data is estimated. |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information | | | | | | |
| (In thousands) | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr %
Change | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Allowance for loan losses | | | | | | | | | |
| Balance at beginning of period | | $ | 238,023 |
| $ | 236,250 |
| 1 | % | | $ | 252,601 |
| $ | 257,058 |
| $ | 265,880 |
| (10 | )% |
| Provision for loan losses | | 4,500 |
| 2,000 |
| 125 | % | | (4,000 | ) | 4,000 |
| 500 |
| N/M |
|
| Charge offs | | (15,486 | ) | (6,151 | ) | 152 | % | | (17,304 | ) | (14,926 | ) | (12,155 | ) | 27 | % |
| Recoveries | | 8,044 |
| 5,923 |
| 36 | % | | 4,953 |
| 6,470 |
| 2,832 |
| 184 | % |
| Net charge offs | | (7,442 | ) | (228 | ) | N/M |
| | (12,351 | ) | (8,456 | ) | (9,323 | ) | (20 | )% |
| Balance at end of period | | $ | 235,081 |
| $ | 238,023 |
| (1 | )% | | $ | 236,250 |
| $ | 252,601 |
| $ | 257,058 |
| (9 | )% |
| Allowance for unfunded commitments | | | | | | | | | |
| Balance at beginning of period | | $ | 24,336 |
| $ | 25,336 |
| (4 | )% | | $ | 26,336 |
| $ | 26,336 |
| $ | 24,400 |
| — | % |
| Provision for unfunded commitments | | 1,500 |
| (1,000 | ) | N/M |
| | (1,000 | ) | — |
| (500 | ) | N/M |
|
| Amount recorded at acquisition | | — |
| — |
| N/M |
| | — |
| — |
| 2,436 |
| (100 | )% |
| Balance at end of period | | $ | 25,836 |
| $ | 24,336 |
| 6 | % | | $ | 25,336 |
| $ | 26,336 |
| $ | 26,336 |
| (2 | )% |
| Allowance for credit losses | | $ | 260,917 |
| $ | 262,359 |
| (1 | )% | | $ | 261,586 |
| $ | 278,937 |
| $ | 283,394 |
| (8 | )% |
| Provision for credit losses | | $ | 6,000 |
| $ | 1,000 |
| N/M |
| | $ | (5,000 | ) | $ | 4,000 |
| $ | — |
| N/M |
|
| | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr % Change | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Net charge offs | | | | | | | | | |
| Commercial and industrial | | $ | (7,428 | ) | $ | 2,974 |
| N/M |
| | $ | (6,893 | ) | $ | (6,606 | ) | $ | (6,599 | ) | 13 | % |
| Commercial real estate—owner occupied | | 1,193 |
| 282 |
| N/M |
| | (252 | ) | 270 |
| (1,025 | ) | N/M |
|
| Commercial and business lending | | (6,235 | ) | 3,256 |
| N/M |
| | (7,145 | ) | (6,336 | ) | (7,624 | ) | (18 | )% |
| Commercial real estate—investor | | 31 |
| (2,107 | ) | N/M |
| | (3,958 | ) | (1,189 | ) | 8 |
| N/M |
|
| Real estate construction | | — |
| 106 |
| (100 | )% | | (195 | ) | 48 |
| 189 |
| (100 | )% |
| Commercial real estate lending | | 31 |
| (2,001 | ) | N/M |
| | (4,153 | ) | (1,141 | ) | 197 |
| (84 | )% |
| Total commercial | | (6,203 | ) | 1,255 |
| N/M |
| | (11,298 | ) | (7,477 | ) | (7,427 | ) | (16 | )% |
| Residential mortgage | | (457 | ) | (94 | ) | N/M |
| | 5 |
| (135 | ) | (131 | ) | N/M |
|
| Home equity | | 309 |
| (270 | ) | N/M |
| | 200 |
| 140 |
| (677 | ) | N/M |
|
| Other consumer | | (1,090 | ) | (1,118 | ) | (3 | )% | | (1,258 | ) | (984 | ) | (1,088 | ) | — | % |
| Total consumer | | (1,239 | ) | (1,482 | ) | (16 | )% | | (1,053 | ) | (979 | ) | (1,896 | ) | (35 | )% |
| Total net charge offs | | $ | (7,442 | ) | $ | (228 | ) | N/M |
| | $ | (12,351 | ) | $ | (8,456 | ) | $ | (9,323 | ) | (20 | )% |
| | | | | | | | | | |
| (In basis points) | | Mar 31, 2019 | Dec 31, 2018 | | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |
| Net charge offs to average loans (annualized) | | | | | | | | | |
| Commercial and industrial | | (40 | ) | 16 |
| | | (39 | ) | (39 | ) | (41 | ) | |
| Commercial real estate—owner occupied | | 53 |
| 13 |
| | | (11 | ) | 12 |
| (48 | ) | |
| Commercial and business lending | | (30 | ) | 16 |
| | | (36 | ) | (33 | ) | (42 | ) | |
| Commercial real estate—investor | | — |
| (22 | ) | | | (40 | ) | (12 | ) | — |
| |
| Real estate construction | | — |
| 3 |
| | | (5 | ) | 1 |
| 5 |
| |
| Commercial real estate lending | | — |
| (15 | ) | | | (30 | ) | (8 | ) | 1 |
| |
| Total commercial | | (19 | ) | 4 |
| | | (34 | ) | (22 | ) | (24 | ) | |
| Residential mortgage | | (2 | ) | — |
| | | — |
| (1 | ) | (1 | ) | |
| Home equity | | 14 |
| (12 | ) | | | 9 |
| 6 |
| (30 | ) | |
| Other consumer | | (123 | ) | (121 | ) | | | (133 | ) | (105 | ) | (115 | ) | |
| Total consumer | | (5 | ) | (6 | ) | | | (4 | ) | (4 | ) | (8 | ) | |
| Total net charge offs | | (13 | ) | — |
| | | (21 | ) | (15 | ) | (17 | ) | |
| | | | | | | | | | |
| (In thousands) | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr %
Change | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Credit Quality | | | | | | | | | |
| Nonaccrual loans | | $ | 155,556 |
| $ | 127,901 |
| 22 | % | | $ | 154,092 |
| $ | 204,460 |
| $ | 208,553 |
| (25 | )% |
| Other real estate owned (OREO) | | 12,286 |
| 11,984 |
| 3 | % | | 25,653 |
| 27,207 |
| 16,919 |
| (27 | )% |
| Other nonperforming assets | | — |
| — |
| N/M |
| | 6,379 |
| 7,059 |
| 7,117 |
| (100 | )% |
| Total nonperforming assets | | $ | 167,843 |
| $ | 139,885 |
| 20 | % | | $ | 186,124 |
| $ | 238,726 |
| $ | 232,589 |
| (28 | )% |
| | | | | | | | | | |
| Loans 90 or more days past due and still accruing | | $ | 2,218 |
| $ | 2,165 |
| 2 | % | | $ | 2,175 |
| $ | 1,839 |
| $ | 3,393 |
| (35 | )% |
| Allowance for loan losses to loans | | 1.02 | % | 1.04 | % | | | 1.03 | % | 1.10 | % | 1.13 | % | |
| Net unaccreted purchase discount to net purchased loans | | 1.41 | % | 1.44 | % | | | 1.48 | % | 1.58 | % | 1.80 | % | |
| Allowance for loan losses to nonaccrual loans | | 151.12 | % | 186.10 | % | | | 153.32 | % | 123.55 | % | 123.26 | % | |
| Nonaccrual loans to total loans | | 0.67 | % | 0.56 | % | | | 0.67 | % | 0.89 | % | 0.91 | % | |
| Nonperforming assets to total loans plus OREO | | 0.72 | % | 0.61 | % | | | 0.81 | % | 1.04 | % | 1.02 | % | |
| Nonperforming assets to total assets | | 0.50 | % | 0.42 | % | | | 0.56 | % | 0.71 | % | 0.70 | % | |
| Year-to-date net charge offs to average loans (annualized) | | 0.13 | % | 0.13 | % | | | 0.18 | % | 0.16 | % | 0.17 | % | |
|
| | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information (continued) |
| (In thousands) | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr %
Change |
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Nonaccrual loans | | | | | | | | | |
| Commercial and industrial | | $ | 73,379 |
| $ | 41,021 |
| 79 | % | | $ | 50,146 |
| $ | 81,776 |
| $ | 102,667 |
| (29 | )% |
| Commercial real estate—owner occupied | | 890 |
| 3,957 |
| (78 | )% | | 4,779 |
| 18,649 |
| 20,636 |
| (96 | )% |
| Commercial and business lending | | 74,269 |
| 44,978 |
| 65 | % | | 54,925 |
| 100,425 |
| 123,303 |
| (40 | )% |
| Commercial real estate—investor | | 776 |
| 1,952 |
| (60 | )% | | 19,725 |
| 26,503 |
| 15,574 |
| (95 | )% |
| Real estate construction | | 739 |
| 979 |
| (25 | )% | | 1,154 |
| 1,544 |
| 1,219 |
| (39 | )% |
| Commercial real estate lending | | 1,516 |
| 2,931 |
| (48 | )% | | 20,879 |
| 28,047 |
| 16,793 |
| (91 | )% |
| Total commercial | | 75,784 |
| 47,909 |
| 58 | % | | 75,804 |
| 128,472 |
| 140,096 |
| (46 | )% |
| Residential mortgage | | 67,323 |
| 67,574 |
| — | % | | 65,896 |
| 62,896 |
| 55,100 |
| 22 | % |
| Home equity | | 12,300 |
| 12,339 |
| — | % | | 12,324 |
| 12,958 |
| 13,218 |
| (7 | )% |
| Other consumer | | 149 |
| 79 |
| 89 | % | | 68 |
| 134 |
| 139 |
| 7 | % |
| Total consumer | | 79,772 |
| 79,992 |
| — | % | | 78,288 |
| 75,988 |
| 68,456 |
| 17 | % |
| Total nonaccrual loans | | $ | 155,556 |
| $ | 127,901 |
| 22 | % | | $ | 154,092 |
| $ | 204,460 |
| $ | 208,553 |
| (25 | )% |
| | | | | | | | | | |
| | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr %
Change | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Restructured loans (accruing) | | | | | | | | | |
| Commercial and industrial | | $ | 15,443 |
| $ | 25,478 |
| (39 | )% | | $ | 38,885 |
| $ | 32,438 |
| $ | 29,580 |
| (48 | )% |
| Commercial real estate—owner occupied | | 2,026 |
| 2,080 |
| (3 | )% | | 3,746 |
| 3,820 |
| 3,892 |
| (48 | )% |
| Commercial and business lending | | 17,469 |
| 27,558 |
| (37 | )% | | 42,631 |
| 36,258 |
| 33,472 |
| (48 | )% |
| Commercial real estate—investor | | 1,700 |
| 799 |
| 113 | % | | 350 |
| 372 |
| 13,683 |
| (88 | )% |
| Real estate construction | | 311 |
| 311 |
| — | % | | 218 |
| 222 |
| 305 |
| 2 | % |
| Commercial real estate lending | | 2,011 |
| 1,110 |
| 81 | % | | 568 |
| 594 |
| 13,988 |
| (86 | )% |
| Total commercial | | 19,480 |
| 28,668 |
| (32 | )% | | 43,199 |
| 36,852 |
| 47,460 |
| (59 | )% |
| Residential mortgage | | 18,226 |
| 16,036 |
| 14 | % | | 16,986 |
| 17,934 |
| 19,902 |
| (8 | )% |
| Home equity | | 7,688 |
| 7,385 |
| 4 | % | | 7,792 |
| 7,900 |
| 8,098 |
| (5 | )% |
| Other consumer | | 1,154 |
| 1,174 |
| (2 | )% | | 1,177 |
| 1,037 |
| 1,041 |
| 11 | % |
| Total consumer | | 27,068 |
| 24,595 |
| 10 | % | | 25,955 |
| 26,871 |
| 29,041 |
| (7 | )% |
| Total restructured loans (accruing) | | $ | 46,548 |
| $ | 53,263 |
| (13 | )% | | $ | 69,154 |
| $ | 63,723 |
| $ | 76,501 |
| (39 | )% |
| Nonaccrual restructured loans (included in nonaccrual loans) | | $ | 24,172 |
| $ | 26,292 |
| (8 | )% | | $ | 33,757 |
| $ | 38,005 |
| $ | 23,827 |
| 1 | % |
| | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr %
Change | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Accruing Loans 30-89 Days Past Due | | | | | | | | | |
| Commercial and industrial | | $ | 3,295 |
| $ | 525 |
| N/M |
| | $ | 5,732 |
| $ | 588 |
| $ | 880 |
| N/M |
|
| Commercial real estate—owner occupied | | 6,066 |
| 2,699 |
| 125 | % | | 6,126 |
| 193 |
| 511 |
| N/M |
|
| Commercial and business lending | | 9,361 |
| 3,224 |
| 190 | % | | 11,858 |
| 781 |
| 1,391 |
| N/M |
|
| Commercial real estate—investor | | 1,090 |
| 3,767 |
| (71 | )% | | 373 |
| 828 |
| 240 |
| N/M |
|
| Real estate construction | | 6,773 |
| 330 |
| N/M |
| | 517 |
| 19,765 |
| 490 |
| N/M |
|
| Commercial real estate lending | | 7,863 |
| 4,097 |
| 92 | % | | 890 |
| 20,593 |
| 730 |
| N/M |
|
| Total commercial | | 17,224 |
| 7,321 |
| 135 | % | | 12,748 |
| 21,374 |
| 2,121 |
| N/M |
|
| Residential mortgage | | 13,274 |
| 9,706 |
| 37 | % | | 8,899 |
| 9,341 |
| 15,133 |
| (12 | )% |
| Home equity | | 6,363 |
| 6,049 |
| 5 | % | | 8,080 |
| 7,270 |
| 5,868 |
| 8 | % |
| Other consumer | | 2,364 |
| 2,269 |
| 4 | % | | 1,979 |
| 1,735 |
| 1,811 |
| 31 | % |
| Total consumer | | 22,001 |
| 18,024 |
| 22 | % | | 18,958 |
| 18,346 |
| 22,812 |
| (4 | )% |
| Total accruing loans 30-89 days past due | | $ | 39,225 |
| $ | 25,345 |
| 55 | % | | $ | 31,706 |
| $ | 39,720 |
| $ | 24,934 |
| 57 | % |
| | | | | | | | | | |
| | | Mar 31, 2019 | Dec 31, 2018 | Seql Qtr %
Change | | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Comp Qtr %
Change |
| Potential Problem Loans | | | | | | | | | |
| Commercial and industrial | | $ | 111,772 |
| $ | 116,578 |
| (4 | )% | | $ | 144,468 |
| $ | 172,177 |
| $ | 196,766 |
| (43 | )% |
| Commercial real estate—owner occupied | | 48,929 |
| 55,964 |
| (13 | )% | | 32,526 |
| 38,879 |
| 34,410 |
| 42 | % |
| Commercial and business lending | | 160,701 |
| 172,542 |
| (7 | )% | | 176,994 |
| 211,056 |
| 231,176 |
| (30 | )% |
| Commercial real estate—investor | | 70,613 |
| 67,481 |
| 5 | % | | 49,842 |
| 24,790 |
| 46,970 |
| 50 | % |
| Real estate construction | | 4,600 |
| 3,834 |
| 20 | % | | 3,392 |
| 3,168 |
| 1,695 |
| 171 | % |
| Commercial real estate lending | | 75,213 |
| 71,315 |
| 5 | % | | 53,234 |
| 27,958 |
| 48,665 |
| 55 | % |
| Total commercial | | 235,914 |
| 243,856 |
| (3 | )% | | 230,228 |
| 239,014 |
| 279,841 |
| (16 | )% |
| Residential mortgage | | 5,351 |
| 5,975 |
| (10 | )% | | 6,073 |
| 2,355 |
| 2,155 |
| 148 | % |
| Home equity | | 91 |
| 103 |
| (12 | )% | | 148 |
| 142 |
| 188 |
| (52 | )% |
| Other consumer | | — |
| — |
| N/M |
| | — |
| 6 |
| — |
| N/M |
|
| Total consumer | | 5,443 |
| 6,078 |
| (10 | )% | | 6,221 |
| 2,503 |
| 2,343 |
| 132 | % |
| Total potential problem loans | | $ | 241,357 |
| $ | 249,935 |
| (3 | )% | | $ | 236,449 |
| $ | 241,517 |
| $ | 282,184 |
| (14 | )% |
N/M = Not meaningful
Numbers may not sum due to rounding.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter | | | | |
| | Three Months Ended |
| | March 31, 2019 | | December 31, 2018 | | March 31, 2018 |
| (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 (a) (b) (c) | | | | | | | | | | | |
| Commercial and business lending | $ | 8,376,163 |
| $ | 100,298 |
| 4.86 | % | | $ | 8,019,254 |
| $ | 96,539 |
| 4.78 | % | | $ | 7,313,621 |
| $ | 74,706 |
| 4.14 | % |
| Commercial real estate lending | 5,117,926 |
| 65,512 |
| 5.19 | % | | 5,209,743 |
| 72,364 |
| 5.51 | % | | 5,399,429 |
| 61,504 |
| 4.62 | % |
| Total commercial | 13,494,089 |
| 165,810 |
| 4.98 | % | | 13,228,997 |
| 168,903 |
| 5.07 | % | | 12,713,050 |
| 136,210 |
| 4.34 | % |
Residential mortgage (d) | 8,366,452 |
| 73,981 |
| 3.54 | % | | 8,314,421 |
| 73,158 |
| 3.52 | % | | 8,066,297 |
| 66,955 |
| 3.32 | % |
Retail (d) | 1,242,973 |
| 19,355 |
| 6.26 | % | | 1,261,307 |
| 18,982 |
| 6.00 | % | | 1,299,181 |
| 17,299 |
| 5.35 | % |
| Total loans | 23,103,514 |
| 259,147 |
| 4.53 | % | | 22,804,725 |
| 261,043 |
| 4.55 | % | | 22,078,529 |
| 220,464 |
| 4.03 | % |
| Investment securities | | | | | | | | | | | |
| Taxable | 4,977,866 |
| 29,053 |
| 2.34 | % | | 5,087,746 |
| 29,119 |
| 2.29 | % | | 5,576,826 |
| 30,104 |
| 2.16 | % |
Tax-exempt (a) | 1,845,352 |
| 17,270 |
| 3.74 | % | | 1,740,964 |
| 16,253 |
| 3.73 | % | | 1,312,913 |
| 11,613 |
| 3.54 | % |
| Other short-term investments | 468,449 |
| 4,226 |
| 3.65 | % | | 383,286 |
| 3,257 |
| 3.38 | % | | 313,864 |
| 2,177 |
| 2.80 | % |
| Investments and other | 7,291,666 |
| 50,549 |
| 2.78 | % | | 7,211,997 |
| 48,629 |
| 2.70 | % | | 7,203,603 |
| 43,894 |
| 2.44 | % |
| Total earning assets | 30,395,180 |
| $ | 309,695 |
| 4.11 | % | | 30,016,722 |
| $ | 309,672 |
| 4.11 | % | | 29,282,132 |
| $ | 264,358 |
| 3.64 | % |
| Other assets, net | 3,049,123 |
| | | | 3,045,836 |
| | | | 2,884,248 |
| | |
| Total assets | $ | 33,444,303 |
| | | | $ | 33,062,558 |
| | | | $ | 32,166,380 |
| | |
| Liabilities and stockholders' equity | | | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | | | |
| Savings | $ | 2,098,834 |
| $ | 1,150 |
| 0.22 | % | | $ | 1,995,160 |
| $ | 696 |
| 0.14 | % | | $ | 1,722,665 |
| $ | 202 |
| 0.05 | % |
| Interest-bearing demand | 4,739,662 |
| 13,920 |
| 1.19 | % | | 4,837,223 |
| 14,006 |
| 1.15 | % | | 4,503,974 |
| 7,818 |
| 0.70 | % |
| Money market | 7,388,174 |
| 20,786 |
| 1.14 | % | | 7,089,449 |
| 16,532 |
| 0.93 | % | | 7,215,329 |
| 9,785 |
| 0.55 | % |
| Network transaction deposits | 2,225,027 |
| 13,626 |
| 2.48 | % | | 1,880,595 |
| 10,943 |
| 2.31 | % | | 2,408,681 |
| 8,778 |
| 1.48 | % |
| Time deposits | 3,121,960 |
| 13,291 |
| 1.73 | % | | 3,060,896 |
| 11,982 |
| 1.55 | % | | 2,715,292 |
| 6,830 |
| 1.02 | % |
| Total interest-bearing deposits | 19,573,656 |
| 62,773 |
| 1.30 | % | | 18,863,323 |
| 54,159 |
| 1.14 | % | | 18,565,941 |
| 33,412 |
| 0.73 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 177,361 |
| 627 |
| 1.43 | % | | 134,748 |
| 442 |
| 1.30 | % | | 275,578 |
| 522 |
| 0.77 | % |
| Commercial paper | 41,640 |
| 51 |
| 0.50 | % | | 41,528 |
| 36 |
| 0.35 | % | | 73,722 |
| 60 |
| 0.33 | % |
| FHLB advances | 3,639,660 |
| 19,554 |
| 2.18 | % | | 3,654,905 |
| 19,948 |
| 2.17 | % | | 3,736,510 |
| 13,123 |
| 1.42 | % |
| Long-term funding | 795,757 |
| 7,396 |
| 3.72 | % | | 795,379 |
| 7,396 |
| 3.72 | % | | 497,348 |
| 4,544 |
| 3.66 | % |
| Total short and long-term funding | 4,654,418 |
| 27,628 |
| 2.40 | % | | 4,626,560 |
| 27,822 |
| 2.39 | % | | 4,583,158 |
| 18,249 |
| 1.61 | % |
| Total interest-bearing liabilities | 24,228,074 |
| $ | 90,401 |
| 1.51 | % | | 23,489,883 |
| $ | 81,980 |
| 1.39 | % | | 23,149,099 |
| $ | 51,661 |
| 0.90 | % |
| Noninterest-bearing demand deposits | 4,982,553 |
| | | | 5,366,711 |
| | | | 5,084,957 |
| | |
| Other liabilities | 418,546 |
| | | | 459,204 |
| | | | 395,008 |
| | |
| Stockholders’ equity | 3,815,130 |
| | | | 3,746,760 |
| | | | 3,537,316 |
| | |
| Total liabilities and stockholders’ equity | $ | 33,444,303 |
| | | | $ | 33,062,558 |
| | | | $ | 32,166,380 |
| | |
| Interest rate spread | | | 2.60 | % | | | | 2.72 | % | | | | 2.74 | % |
| Net free funds | | | 0.30 | % | | | | 0.30 | % | | | | 0.18 | % |
| Fully tax-equivalent net interest income and net interest margin ("NIM") | | $ | 219,294 |
| 2.90 | % | | | $ | 227,692 |
| 3.02 | % | | | $ | 212,697 |
| 2.92 | % |
| Fully tax-equivalent adjustment | | 3,747 |
| | | | 3,736 |
| | | | 2,826 |
| |
| Net interest income | | $ | 215,547 |
| | | | $ | 223,955 |
| | | | $ | 209,871 |
| |
Numbers may not sum due to rounding.
| |
| (a) | The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21% and is net of the effects of certain disallowed interest deductions. |
| |
| (b) | Nonaccrual loans and loans held for sale have been included in the average balances. |
| |
| (c) | Interest income includes amortization of net deferred loan origination costs and net accreted purchase loan discount. |
| |
| (d) | Upon conversion, certain Bank Mutual loans were reclassified from home equity to residential mortgage. March 31, 2018 balances have been adjusted to reflect this change. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp Loan and Deposit Composition | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | |
| Period end loan composition | | Mar 31, 2019 | | Dec 31, 2018 | | Seql Qtr % Change | | Sep 30, 2018 | | Jun 30, 2018 | | Mar 31, 2018 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 7,587,597 |
| | $ | 7,398,044 |
| | 3 | % | | $ | 7,159,941 |
| | $ | 7,109,796 |
| | $ | 6,756,983 |
| | 12 | % |
| Commercial real estate—owner occupied | | 932,393 |
| | 920,443 |
| | 1 | % | | 867,682 |
| | 888,330 |
| | 900,913 |
| | 3 | % |
| Commercial and business lending | | 8,519,990 |
| | 8,318,487 |
| | 2 | % | | 8,027,622 |
| | 7,998,126 |
| | 7,657,896 |
| | 11 | % |
| Commercial real estate—investor | | 3,809,253 |
| | 3,751,554 |
| | 2 | % | | 3,924,499 |
| | 3,996,415 |
| | 4,077,671 |
| | (7 | )% |
| Real estate construction | | 1,273,782 |
| | 1,335,031 |
| | (5 | )% | | 1,416,209 |
| | 1,487,159 |
| | 1,579,778 |
| | (19 | )% |
| Commercial real estate lending | | 5,083,035 |
| | 5,086,585 |
| | — | % | | 5,340,708 |
| | 5,483,574 |
| | 5,657,449 |
| | (10 | )% |
| Total commercial | | 13,603,025 |
| | 13,405,072 |
| | 1 | % | | 13,368,330 |
| | 13,481,700 |
| | 13,315,345 |
| | 2 | % |
| Residential mortgage | | 8,323,846 |
| | 8,277,712 |
| | 1 | % | | 8,227,649 |
| | 8,207,253 |
| | 8,197,223 |
| | 2 | % |
| Home equity | | 868,886 |
| | 894,473 |
| | (3 | )% | | 901,275 |
| | 911,363 |
| | 923,470 |
| | (6 | )% |
| Other consumer | | 352,602 |
| | 363,171 |
| | (3 | )% | | 369,858 |
| | 376,470 |
| | 374,453 |
| | (6 | )% |
| Total consumer | | 9,545,333 |
| | 9,535,357 |
| | — | % | | 9,498,782 |
| | 9,495,086 |
| | 9,495,146 |
| | 1 | % |
| Total loans | | $ | 23,148,359 |
| | $ | 22,940,429 |
| | 1 | % | | $ | 22,867,112 |
| | $ | 22,976,786 |
| | $ | 22,810,491 |
| | 1 | % |
| Purchased credit-impaired loans | | $ | 4,907 |
| | $ | 4,852 |
| | 1 | % | | $ | 13,133 |
| | $ | 15,900 |
| | $ | 14,838 |
| | (67 | )% |
| Period end deposit and customer funding composition | | Mar 31, 2019 | | Dec 31, 2018 | | Seql Qtr % Change | | Sep 30, 2018 | | Jun 30, 2018 | | Mar 31, 2018 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 5,334,154 |
| | $ | 5,698,530 |
| | (6 | )% | | $ | 5,421,270 |
| | $ | 5,341,361 |
| | $ | 5,458,473 |
| | (2 | )% |
| Savings | | 2,215,857 |
| | 2,012,841 |
| | 10 | % | | 1,937,006 |
| | 1,887,777 |
| | 1,883,638 |
| | 18 | % |
| Interest-bearing demand | | 5,226,362 |
| | 5,336,952 |
| | (2 | )% | | 5,096,998 |
| | 4,650,407 |
| | 4,719,566 |
| | 11 | % |
| Money market | | 9,005,018 |
| | 9,033,669 |
| | — | % | | 9,087,587 |
| | 9,208,993 |
| | 9,086,553 |
| | (1 | )% |
| Brokered CDs | | 387,459 |
| | 192,234 |
| | 102 | % | | 235,711 |
| | 228,029 |
| | 44,503 |
| | N/M |
|
| Other time | | 3,364,206 |
| | 2,623,167 |
| | 28 | % | | 3,053,041 |
| | 2,499,747 |
| | 2,632,869 |
| | 28 | % |
| Total deposits | | 25,533,057 |
| | 24,897,393 |
| | 3 | % | | 24,831,612 |
| | 23,816,314 |
| | 23,825,602 |
| | 7 | % |
Customer funding (a) | | 146,027 |
| | 137,364 |
| | 6 | % | | 184,269 |
| | 235,804 |
| | 297,289 |
| | (51 | )% |
| Total deposits and customer funding | | $ | 25,679,083 |
| | $ | 25,034,757 |
| | 3 | % | | $ | 25,015,882 |
| | $ | 24,052,118 |
| | $ | 24,122,891 |
| | 6 | % |
Network transaction deposits (b) | | $ | 2,204,204 |
| | $ | 2,276,296 |
| | (3 | )% | | $ | 1,852,863 |
| | $ | 2,094,670 |
| | $ | 2,244,739 |
| | (2 | )% |
| Net deposits and customer funding (Total deposits and customer funding, excluding Brokered CDs and network transaction deposits) | | $ | 23,087,421 |
| | $ | 22,566,227 |
| | 2 | % | | $ | 22,927,308 |
| | $ | 21,729,419 |
| | $ | 21,833,649 |
| | 6 | % |
| | | | | | | | | | | | | | | |
Quarter average loan composition (c) | | Mar 31, 2019 | | Dec 31, 2018 | | Seql Qtr % Change | | Sep 30, 2018 | | Jun 30, 2018 | | Mar 31, 2018 | | Comp Qtr % Change |
| Commercial and industrial | | $ | 7,459,318 |
| | $ | 7,166,092 |
| | 4 | % | | $ | 7,059,946 |
| | $ | 6,804,311 |
| | $ | 6,449,898 |
| | 16 | % |
| Commercial real estate—owner occupied | | 916,845 |
| | 853,162 |
| | 7 | % | | 878,793 |
| | 892,746 |
| | 863,723 |
| | 6 | % |
| Commercial and business lending | | 8,376,163 |
| | 8,019,254 |
| | 4 | % | | 7,938,739 |
| | 7,697,057 |
| | 7,313,621 |
| | 15 | % |
| Commercial real estate—investor | | 3,777,520 |
| | 3,788,398 |
| | — | % | | 3,948,922 |
| | 4,117,675 |
| | 3,866,286 |
| | (2 | )% |
| Real estate construction | | 1,340,406 |
| | 1,421,344 |
| | (6 | )% | | 1,471,758 |
| | 1,588,141 |
| | 1,533,143 |
| | (13 | )% |
| Commercial real estate lending | | 5,117,926 |
| | 5,209,743 |
| | (2 | )% | | 5,420,680 |
| | 5,705,817 |
| | 5,399,429 |
| | (5 | )% |
| Total commercial | | 13,494,089 |
| | 13,228,997 |
| | 2 | % | | 13,359,419 |
| | 13,402,874 |
| | 12,713,050 |
| | 6 | % |
| Residential mortgage | | 8,366,452 |
| | 8,314,421 |
| | 1 | % | | 8,333,303 |
| | 8,310,358 |
| | 8,066,297 |
| | 4 | % |
| Home equity | | 883,735 |
| | 895,412 |
| | (1 | )% | | 906,364 |
| | 917,688 |
| | 917,001 |
| | (4 | )% |
| Other consumer | | 359,238 |
| | 365,895 |
| | (2 | )% | | 374,632 |
| | 374,508 |
| | 382,180 |
| | (6 | )% |
| Total consumer | | 9,609,426 |
| | 9,575,728 |
| | — | % | | 9,614,298 |
| | 9,602,555 |
| | 9,365,479 |
| | 3 | % |
| Total loans | | $ | 23,103,514 |
| | $ | 22,804,725 |
| | 1 | % | | $ | 22,973,717 |
| | $ | 23,005,428 |
| | $ | 22,078,529 |
| | 5 | % |
| | | | | | | | | | | | | | | |
Quarter average deposit composition (d) | | Mar 31, 2019 | | Dec 31, 2018 | | Seql Qtr % Change | | Sep 30, 2018 | | Jun 30, 2018 | | Mar 31, 2018 | | Comp Qtr % Change |
| Noninterest-bearing demand | | $ | 4,982,553 |
| | $ | 5,366,711 |
| | (7 | )% | | $ | 5,310,977 |
| | $ | 5,131,894 |
| | $ | 5,084,957 |
| | (2 | )% |
| Savings | | 2,098,834 |
| | 1,995,160 |
| | 5 | % | | 1,901,960 |
| | 1,892,808 |
| | 1,722,665 |
| | 22 | % |
| Interest-bearing demand | | 4,739,662 |
| | 4,837,223 |
| | (2 | )% | | 4,988,694 |
| | 4,735,514 |
| | 4,503,974 |
| | 5 | % |
| Money market | | 7,388,174 |
| | 7,089,449 |
| | 4 | % | | 7,546,059 |
| | 7,190,178 |
| | 7,215,329 |
| | 2 | % |
| Network transaction deposits | | 2,225,027 |
| | 1,880,595 |
| | 18 | % | | 1,969,915 |
| | 2,130,854 |
| | 2,408,681 |
| | (8 | )% |
| Time deposits | | 3,121,960 |
| | 3,060,896 |
| | 2 | % | | 2,978,314 |
| | 2,565,001 |
| | 2,715,292 |
| | 15 | % |
| Total deposits | | $ | 24,556,209 |
| | $ | 24,230,034 |
| | 1 | % | | $ | 24,695,918 |
| | $ | 23,646,250 |
| | $ | 23,650,898 |
| | 4 | % |
N/M = Not meaningful
Numbers may not sum due to rounding.
| |
| (a) | Includes repurchase agreements and commercial paper. |
(b) Included above in interest-bearing demand and money market.
(c) On February 1, 2018, the Corporation acquired Bank Mutual and added $1.9 billion in loans. March 31, 2018 average balances only include two months (from 2/1/2018 through 3/31/2018).
(d) On February 1, 2018, the Corporation acquired Bank Mutual and added $1.8 billion of deposits. March 31, 2018 average balances only include two months (from 2/1/2018 through 3/31/2018).
|
| | | | | | | | | | | | | | | |
Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation | | | | | |
| (In millions, except per share data) | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 |
Tangible common equity reconciliation (a) | | | | | |
| Common equity | $ | 3,579 |
| $ | 3,524 |
| $ | 3,540 |
| $ | 3,611 |
| $ | 3,553 |
|
| Goodwill and other intangible assets, net | (1,243 | ) | (1,245 | ) | (1,247 | ) | (1,247 | ) | (1,233 | ) |
| Tangible common equity | $ | 2,337 |
| $ | 2,279 |
| $ | 2,293 |
| $ | 2,364 |
| $ | 2,320 |
|
Tangible assets reconciliation (a) | | | | | |
| Total assets | $ | 33,701 |
| $ | 33,648 |
| $ | 33,489 |
| $ | 33,653 |
| $ | 33,367 |
|
| Goodwill and other intangible assets, net | (1,243 | ) | (1,245 | ) | (1,247 | ) | (1,247 | ) | (1,233 | ) |
| Tangible assets | $ | 32,458 |
| $ | 32,403 |
| $ | 32,242 |
| $ | 32,406 |
| $ | 32,134 |
|
Average tangible common equity and average common equity tier 1 reconciliation(a) | | | | | |
| Common equity | $ | 3,558 |
| $ | 3,490 |
| $ | 3,589 |
| $ | 3,561 |
| $ | 3,377 |
|
| Goodwill and other intangible assets, net | (1,244 | ) | (1,246 | ) | (1,246 | ) | (1,236 | ) | (1,108 | ) |
| Tangible common equity | 2,314 |
| 2,244 |
| 2,343 |
| 2,325 |
| 2,269 |
|
| Accumulated other comprehensive loss (income) | 116 |
| 137 |
| 125 |
| 117 |
| 89 |
|
| Deferred tax assets (liabilities), net | 45 |
| 46 |
| 45 |
| 47 |
| 32 |
|
| Average common equity Tier 1 | $ | 2,475 |
| $ | 2,427 |
| $ | 2,513 |
| $ | 2,489 |
| $ | 2,390 |
|
Selected Trend Information (b) | | | | | |
| Insurance commissions and fees | $ | 25 |
| $ | 21 |
| $ | 22 |
| $ | 24 |
| $ | 23 |
|
Wealth management fees (c) | 20 |
| 20 |
| 21 |
| 20 |
| 21 |
|
| Service charges and deposit account fees | 15 |
| 16 |
| 17 |
| 16 |
| 16 |
|
| Card-based fees | 9 |
| 10 |
| 10 |
| 10 |
| 9 |
|
| Other fee-based revenue | 4 |
| 5 |
| 4 |
| 4 |
| 4 |
|
| Fee-based revenue | 74 |
| 74 |
| 74 |
| 75 |
| 73 |
|
| Other | 17 |
| 11 |
| 14 |
| 18 |
| 17 |
|
| Total noninterest income | $ | 91 |
| $ | 84 |
| $ | 88 |
| $ | 93 |
| $ | 90 |
|
Selected equity and performance ratios (a) (d) | | | | | |
| Tangible common equity / tangible assets | 7.20 | % | 7.03 | % | 7.11 | % | 7.29 | % | 7.22 | % |
| Return on average equity | 9.21 | % | 9.42 | % | 9.06 | % | 9.61 | % | 7.96 | % |
| Return on average tangible common equity | 14.52 | % | 15.08 | % | 14.14 | % | 14.98 | % | 11.99 | % |
| Return on average common equity Tier 1 | 13.58 | % | 13.94 | % | 13.18 | % | 14.00 | % | 11.39 | % |
Efficiency ratio reconciliation (e) | | | | | |
| Federal Reserve efficiency ratio | 63.32 | % | 62.39 | % | 66.12 | % | 65.77 | % | 70.76 | % |
| Fully tax-equivalent adjustment | (0.77 | )% | (0.75 | )% | (0.75 | )% | (0.65 | )% | (0.66 | )% |
| Other intangible amortization | (0.73 | )% | (0.72 | )% | (0.73 | )% | (0.68 | )% | (0.51 | )% |
| Fully tax-equivalent efficiency ratio | 61.83 | % | 60.93 | % | 64.66 | % | 64.45 | % | 69.60 | % |
| Acquisition related costs adjustment | (0.20 | )% | 0.31 | % | (0.94 | )% | (2.40 | )% | (6.80 | )% |
| Fully tax-equivalent efficiency ratio, excluding acquisition related costs (adjusted efficiency ratio) | 61.63 | % | 61.24 | % | 63.72 | % | 62.05 | % | 62.80 | % |
| Acquisition Related Costs |
|
| | 1Q 2019 | 1Q 2019 per share data(g) |
| GAAP earnings | | | | $ | 83 |
| $ | 0.50 |
|
| Total acquisition related costs | | | | $ | 1 |
| |
Earnings, excluding acquisition related costs (f) | | | | $ | 84 |
| $ | 0.50 |
|
Numbers may not sum due to rounding.
| |
| (a) | 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. |
| |
| (b) | These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation’s results of operations. |
| |
| (c) | Includes trust, asset management, brokerage, and annuity fees. |
| |
| (d) | 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. |
| |
| (e) | 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. The adjusted efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization and acquisition related costs, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and acquisition related costs. Management believes the adjusted efficiency ratio, which adjusts net interest income for the tax-favored status of certain loans and investment securities and acquisition related costs, to be a meaningful measure as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and excludes acquisition related costs. |
| |
| (f) | This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share and provide greater understanding of ongoing operations and enhanced comparability of results with prior periods. |
| |
| (g) | Earnings and per share data presented after-tax. |
