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| NEWS RELEASE Investor Contact: Ben McCarville, 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 Fourth Quarter 2021 Earnings of $0.49 Per Common Share and $2.18 Per Common Share for the Full Year 2021.
GREEN BAY, Wis. -- January 20, 2022 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $74 million, or $0.49 per common share, for the quarter ended December 31, 2021. These amounts compare to earnings of $62 million, or $0.40 per common share for the quarter ended December 31, 2020 and earnings of $85 million, or $0.56 per common share for the quarter ended September 30, 2021. For the year ended December 31, 2021, the Company reported earnings of $334 million, or $2.18 per common share. These amounts compare to earnings of $288 million, or $1.86 per common share, for the year ended December 31, 2020.
“This quarter was marked by a resurgence in lending growth as commercial outstandings, line utilization, and our new initiatives all kicked into gear,” said President and CEO Andy Harmening. “We were pleased to grow in most of our key loan and deposit verticals and took advantage of the positive economic backdrop to largely exit our remaining Oil & Gas exposure at minimal cost. We see 2022 as primed for a rebound in general commercial lending,” he continued. "Alongside the balance sheet growth, we also enjoyed growing revenues, expanding margins, and further positive credit trends."
2021 SUMMARY (all comparisons to 2020)
•Full-year average loans of $24.1 billion were down 2%, or $480 million
•Full-year average deposits of $27.7 billion were up 6%, or $1.7 billion
•Net interest income of $726 million decreased 5%, or $37 million
◦Average cost of total interest-bearing deposits decreased 26 basis points to 0.09%
•Provision for credit losses was negative $88 million, compared to a provision of $174 million
•Noninterest income of $332 million decreased 35%, or $182 million
◦Fee-based revenues1 increased 8%, or $15 million
•Noninterest expense of $710 million decreased 9%, or $66 million
•Net income available to common equity was up $45 million, to $334 million
•Earnings per common share increased $0.32, to $2.18
•Tangible book value per share was $17.87, up 7% from $16.67
1This is a non-GAAP financial measure. Please refer to page 10 of the attached tables for a reconciliation of fee-based revenues to noninterest income.
The Company also announced today that Executive Vice President, CFO Christopher Del Moral-Niles will retire from Associated later this year. To ensure a seamless transition, Mr. Del Moral-Niles will continue in his role until a successor is in place. The Company has retained Diversified Search Group to assist in the search for a successor. Additional details can be found in the press release available at http://investor.associatedbank.com.
Loans
Fourth quarter 2021 period-end total loans of $24.2 billion were up approximately 3%, or $603 million from the prior quarter and were down 1%, or $227 million from the same period last year. Excluding PPP, period-end total loans of $24.2 billion were up over 3%, or $719 million from the prior quarter and were up 2%, or $475 million from the same period last year. With respect to fourth quarter 2021 period-end balances by loan category:
•Commercial and business lending (excluding PPP) increased $551 million from the prior quarter and increased $755 million from the same period last year to $9.4 billion.
•Commercial real estate lending increased $62 million from the prior quarter and increased $11 million from the same period last year to $6.2 billion.
•Consumer lending was $8.6 billion, up $107 million from the prior quarter and down $291 million from the same period last year.
•PPP loans decreased $116 million from the prior quarter and decreased $702 million from the same period last year to $66 million.
Fourth quarter 2021 average total loans of $23.8 billion were down $89 million from the prior quarter and were down 4%, or $887 million from the same period last year. Excluding PPP, average total loans of $23.7 billion were up $72 million from the prior quarter and were down $72 million from the same period last year. With respect to fourth quarter 2021 average balances by loan category:
•Commercial and business lending (excluding PPP) increased $133 million from the prior quarter and increased $328 million compared to the same period last year to $8.8 billion.
•Commercial real estate lending decreased $26 million from the prior quarter and decreased $24 million from the same period last year to $6.1 billion.
•Consumer lending was $8.7 billion, down $35 million from the prior quarter and down $376 million from the same period last year.
•PPP loans decreased $160 million from the prior quarter and decreased $815 million from the same period last year to $115 million.
Full-year 2021 average loans of $24.1 billion were down 2%, or $480 million from 2020. With respect to full-year 2021 average balances by loan category compared to 2020:
•Commercial and business lending (excluding PPP) decreased $77 million to $8.6 billion.
•Commercial real estate lending increased $345 million to $6.2 billion.
•Consumer lending decreased $519 million to $8.8 billion.
•PPP loans decreased $229 million to $472 million.
In 2022, we expect Auto Finance loan growth of more than $1.2 billion and Total Commercial loan growth of $750 million to $1 billion.
Deposits
Fourth quarter 2021 period-end deposits of $28.5 billion were up 2%, or $615 million compared to the prior quarter and were up 7%, or $2.0 billion from the same period last year. Low-cost core deposits (interest-bearing demand, noninterest-bearing demand and savings) made up 68% of deposit balances as of December 31, 2021. With respect to fourth quarter 2021 period-end balances by deposit category:
•Noninterest-bearing demand deposits increased $334 million from the prior quarter and increased $842 million from the same period last year to $8.5 billion.
•Savings increased $132 million from the prior quarter and increased $760 million from the same period last year to $4.4 billion.
•Interest-bearing demand deposits increased $612 million from the prior quarter and increased $929 million from the same period last year to $7.0 billion.
•Money market deposits decreased $399 million from the prior quarter and decreased $138 million from the same period last year to $7.2 billion.
•Time deposits decreased $64 million from the prior quarter and decreased $410 million from the same period last year to $1.3 billion.
•Network transaction deposits (included in money market and interest-bearing deposits) decreased $162 million from the prior quarter and decreased $430 million from the same period last year to $767 million.
Fourth quarter 2021 average deposits of $28.4 billion were up 1%, or $328 million compared to the prior quarter and were up 6%, or $1.7 billion from the same period last year. With respect to fourth quarter 2021 average balances by deposit category:
•Noninterest-bearing demand deposits increased $275 million from the prior quarter and increased $740 million from the same period last year to $8.4 billion.
•Savings increased $119 million from the prior quarter and increased $739 million from the same period last year to $4.4 billion.
•Interest-bearing demand deposits increased $162 million from the prior quarter and increased $766 million from the same period last year to $6.5 billion.
•Money market deposits decreased $118 million from the prior quarter and increased $353 million from the same period last year to $6.9 billion.
•Time deposits decreased $53 million from the prior quarter and decreased $507 million from the same period last year to $1.4 billion.
•Network transaction deposits decreased $56 million from the prior quarter and decreased $427 million from the same period last year to $838 million.
Full-year 2021 average deposits of $27.7 billion were up 6%, or $1.7 billion from 2020. With respect to full-year 2021 average balances by deposit category as compared to 2020:
•Noninterest-bearing demand deposits increased $1.2 billion to $8.1 billion.
•Savings increased $832 million to $4.1 billion.
•Interest-bearing demand deposits increased $531 million to $6.1 billion.
•Money market deposits increased $431 million to $6.9 billion.
•Network transaction deposits decreased $513 million to $930 million.
•Time deposits decreased $786 million to $1.5 billion.
Net Interest Income and Net Interest Margin
Full-year 2021 net interest income of $726 million was down 5%, or $37 million from 2020. Net interest margin of
2.39% was down 14 basis points from the prior year. The decreases in net interest income and margin were driven
by continued low interest rates and significant increases in liquidity during 2021.
•The average yield on total earning assets decreased 39 basis points from the prior year to 2.62%.
•The average cost of interest-bearing liabilities decreased 32 basis points from the prior year to 0.33%.
•The net free funds benefit compressed 7 basis points from the prior year to 0.10%.
Fourth quarter 2021 net interest income of $187 million was up 2%, or $3 million from the prior quarter and the net interest margin increased 2 basis points from the prior quarter to 2.40%. Compared to the same period last year, net interest income decreased 1%, or $1 million, and the net interest margin decreased 9 basis points.
•The average yield on total earning assets for the fourth quarter of 2021 was flat to the prior quarter and decreased 21 basis points from the same period last year to 2.59%.
•The average cost of total interest-bearing liabilities for the fourth quarter of 2021 decreased 3 basis points from the prior quarter and decreased 16 basis points from the same period last year to 0.27%.
•The net free funds benefit for the fourth quarter of 2021 decreased 1 basis point from the prior quarter and decreased 4 basis points compared to the same period last year.
We expect total net interest income to exceed $800 million in 2022.
Noninterest Income
Full-year 2021 noninterest income of $332 million decreased $182 million from the prior year. The decrease was largely driven by $9 million in investment securities gains in 2020 as well as several non-routine items in 2020, including $163 million in asset gains tied to the sale of Associated Benefits and Risk Consulting (ABRC) and a $7 million gain on branch sales. The sale of ABRC in 2020 also drove a $45 million reduction in insurance revenues year-over-year. Excluding 2020 ABRC revenues and related gains, all other noninterest income increased 9%, or $27 million year-over-year. With respect to 2021 noninterest income line items:
•Service charges and deposit account fees increased $8 million from the prior year primarily driven by increased customer activity in 2021 and fee waivers implemented during 2020 in response to the pandemic.
•Net mortgage banking income increased $5 million from the prior year, driven by a recovery of $16 million in 2021 as opposed to an impairment of $18 million in 2020, partially offset by lower gains on mortgages sold of $29 million.
•Wealth management fees increased $5 million from the prior year, driven by higher market valuations.
•Card-based fees increased $4 million from the prior year, driven by increased customer activity.
Fourth quarter 2021 total noninterest income of $82 million decreased $1 million from the prior quarter and decreased $4 million from the same period last year. With respect to fourth quarter 2021 noninterest income line items:
•Capital markets fees increased $3 million from the prior quarter and increased $4 million from the same period last year.
•Mortgage Banking, net was $8 million for the fourth quarter, down $3 million from the prior quarter and down $6 million from the same period last year, driven by slowing refinance activity.
We expect total noninterest income to exceed $300 million in 2022.
Noninterest Expense
Full-year 2021 noninterest expense of $710 million decreased 9%, or $66 million from the prior year. Included in 2020 noninterest expense figures is the loss on prepayments of FHLB advances of $45 million. With respect to full year 2021 noninterest expense line items:
•Personnel costs decreased $5 million from the prior year, largely driven by reduced headcount, partially offset by increased incentive plan expenses.
•Loan and foreclosure costs decreased $4 million from the prior year, driven by lower costs associated with resolving loans.
•Business development and advertising increased $3 million from the prior year as business activity resumed in 2021.
Fourth quarter 2021 total noninterest expense of $182 million increased $4 million from the prior quarter and increased $9 million compared to the same period last year. With respect to fourth quarter 2021 noninterest expense line items:
•Personnel expense was flat to the prior quarter and increased $10 million from the same period last year, driven by higher incentive compensation, added costs tied to our strategic initiatives, and the implementation of a minimum wage increase.
•Occupancy expense increased $1 million from both the prior quarter and the same period last year.
•Other expense increased $3 million from the prior quarter and increased $2 million from the same period last year.
We expect 2022 noninterest expense to be approximately $725 million to $740 million.
Taxes
The fourth quarter 2021 tax expense was $15 million compared to $23 million of tax expense in the prior quarter and $17 million of tax expense in the same period last year. The effective tax rate for fourth quarter 2021 was 16.5% compared to an effective tax rate of 20.6% in the prior quarter and an effective tax rate of 20.1% in the same period last year. The lower effective tax rate in fourth quarter 2021 was due in part to an increase in tax-exempt interest and benefits from bank and corporate owned life insurance compared to the prior quarter and the same period last year.
We expect the annual 2022 tax rate to be between 19% to 21%, assuming no change in the corporate tax rate.
Credit
Full-year 2021 provision for credit losses was negative $88 million, compared to a provision of $174 million in the prior year.
The fourth quarter 2021 provision for credit losses was negative $6 million, compared to a negative provision of $24 million in the prior quarter and provision of $17 million in the same period last year. With respect to fourth quarter 2021 credit quality:
•Nonaccrual loans of $130 million were down $5 million, or 3%, from the prior quarter and down $80 million, or 38% from the same period last year. The nonaccrual loans to total loans ratio was 0.54% in the fourth quarter, down from 0.57% in the prior quarter and down from 0.86% in the same period last year.
•Net charge offs of $6 million were down $1 million, or 17%, from the prior quarter and down $21 million, or 76%, from the same period last year.
•The allowance for credit losses on loans (ACLL) of $320 million was down $12 million from the prior quarter and down $112 million compared to the same period last year. The ACLL to total loans ratio was 1.32% in the fourth quarter, down from 1.41% in the prior quarter and down from 1.76% in the same period last year.
In 2022, we expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
Capital
The Company’s capital position remains strong, with a CET1 capital ratio of 10.3% at December 31, 2021. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
FOURTH QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 20, 2022. Interested parties can access the live webcast of the call through the Investor Relations section of the Company's website, http://investor.associatedbank.com. Parties may also dial into the call at 877-407-8037 (domestic) or 201-689-8037 (international) and request the Associated Banc-Corp fourth quarter 2021 earnings call. The fourth quarter 2021 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 $35 billion and is Wisconsin's largest bank holding company. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from more than 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,” "target," “outlook,” "project," "guidance," 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) | December 31, 2021 | September 30, 2021 | Seql Qtr $ Change | June 30, 2021 | March 31, 2021 | December 31, 2020 | Comp Qtr $ Change |
| Assets | | | | | | | |
| Cash and due from banks | $ | 343,831 | | $ | 378,927 | | $ | (35,096) | | $ | 406,994 | | $ | 356,285 | | $ | 416,154 | | $ | (72,323) | |
| Interest-bearing deposits in other financial institutions | 681,684 | | 1,281,916 | | (600,232) | | 1,340,385 | | 1,590,494 | | 298,759 | | 382,925 | |
| Federal funds sold and securities purchased under agreements to resell | — | | 25,000 | | (25,000) | | 25,000 | | — | | 1,135 | | (1,135) | |
| Investment securities available for sale, at fair value | 4,332,015 | | 3,893,379 | | 438,636 | | 3,323,346 | | 3,356,949 | | 3,085,441 | | 1,246,574 | |
| Investment securities held to maturity, net, at amortized cost | 2,238,947 | | 1,929,735 | | 309,212 | | 1,799,834 | | 1,857,087 | | 1,878,938 | | 360,009 | |
| Equity securities | 18,352 | | 17,939 | | 413 | | 17,144 | | 15,673 | | 15,106 | | 3,246 | |
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 168,281 | | 168,281 | | — | | 168,281 | | 168,281 | | 168,280 | | 1 | |
| Residential loans held for sale | 136,638 | | 158,202 | | (21,564) | | 160,547 | | 153,151 | | 129,158 | | 7,480 | |
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| Loans | 24,224,949 | | 23,621,673 | | 603,276 | | 23,947,536 | | 24,162,328 | | 24,451,724 | | (226,775) | |
| Allowance for loan losses | (280,015) | | (290,997) | | 10,982 | | (318,811) | | (352,938) | | (383,702) | | 103,687 | |
| Loans, net | 23,944,934 | | 23,330,676 | | 614,258 | | 23,628,725 | | 23,809,389 | | 24,068,022 | | (123,088) | |
| Tax credit and other investments | 293,733 | | 301,490 | | (7,757) | | 294,220 | | 303,701 | | 297,232 | | (3,499) | |
| Premises and equipment, net | 385,173 | | 383,131 | | 2,042 | | 398,050 | | 398,671 | | 418,914 | | (33,741) | |
| Bank and corporate owned life insurance | 680,021 | | 683,610 | | (3,589) | | 682,709 | | 680,831 | | 679,647 | | 374 | |
| Goodwill | 1,104,992 | | 1,104,992 | | — | | 1,104,992 | | 1,104,992 | | 1,109,300 | | (4,308) | |
| Other intangible assets, net | 58,093 | | 60,296 | | (2,203) | | 62,498 | | 64,701 | | 68,254 | | (10,161) | |
| Mortgage servicing rights, net | 54,862 | | 50,329 | | 4,533 | | 48,335 | | 49,500 | | 41,961 | | 12,901 | |
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| Interest receivable | 80,528 | | 79,011 | | 1,517 | | 81,797 | | 86,466 | | 90,263 | | (9,735) | |
| Other assets | 582,168 | | 592,753 | | (10,585) | | 609,766 | | 579,084 | | 653,219 | | (71,051) | |
| Total assets | $ | 35,104,253 | | $ | 34,439,666 | | $ | 664,587 | | $ | 34,152,625 | | $ | 34,575,255 | | $ | 33,419,783 | | $ | 1,684,470 | |
| Liabilities and stockholders’ equity | | | | | | | |
| Noninterest-bearing demand deposits | $ | 8,504,077 | | $ | 8,170,105 | | $ | 333,972 | | $ | 7,999,143 | | $ | 8,496,194 | | $ | 7,661,728 | | $ | 842,349 | |
| Interest-bearing deposits | 19,962,353 | | 19,681,161 | | 281,192 | | 19,265,157 | | 19,180,972 | | 18,820,753 | | 1,141,600 | |
| Total deposits | 28,466,430 | | 27,851,266 | | 615,164 | | 27,264,299 | | 27,677,166 | | 26,482,481 | | 1,983,949 | |
| Federal funds purchased and securities sold under agreements to repurchase | 319,532 | | 267,943 | | 51,589 | | 170,419 | | 138,507 | | 192,971 | | 126,561 | |
| Commercial paper | 34,730 | | 54,553 | | (19,823) | | 55,785 | | 51,171 | | 59,346 | | (24,616) | |
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| FHLB advances | 1,621,047 | | 1,620,880 | | 167 | | 1,619,826 | | 1,629,966 | | 1,632,723 | | (11,676) | |
| Other long-term funding | 249,324 | | 249,160 | | 164 | | 549,024 | | 549,729 | | 549,465 | | (300,141) | |
| Allowance for unfunded commitments | 39,776 | | 41,276 | | (1,500) | | 45,276 | | 50,776 | | 47,776 | | (8,000) | |
| Accrued expenses and other liabilities | 348,560 | | 359,626 | | (11,066) | | 337,942 | | 350,160 | | 364,088 | | (15,528) | |
| Total liabilities | 31,079,399 | | 30,444,705 | | 634,694 | | 30,042,573 | | 30,447,474 | | 29,328,850 | | 1,750,549 | |
| Stockholders’ equity | | | | | | | |
| Preferred equity | 193,195 | | 193,195 | | — | | 290,200 | | 353,512 | | 353,512 | | (160,317) | |
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| Common equity | 3,831,658 | | 3,801,766 | | 29,892 | | 3,819,852 | | 3,774,268 | | 3,737,421 | | 94,237 | |
| Total stockholders’ equity | 4,024,853 | | 3,994,961 | | 29,892 | | 4,110,052 | | 4,127,780 | | 4,090,933 | | (66,080) | |
| Total liabilities and stockholders’ equity | $ | 35,104,253 | | $ | 34,439,666 | | $ | 664,587 | | $ | 34,152,625 | | $ | 34,575,255 | | $ | 33,419,783 | | $ | 1,684,470 | |
Numbers may not sum due to rounding.
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited) | Comp Qtr | YTD | YTD | Comp YTD |
| ($ in thousands, except per share data) | 4Q21 | 4Q20 | $ Change | % Change | Dec 2021 | Dec 2020 | $ Change | % Change |
| Interest income | | | | | | | | |
| Interest and fees on loans | $ | 170,809 | | $ | 185,934 | | $ | (15,125) | | (8) | % | $ | 693,729 | | $ | 785,241 | | $ | (91,512) | | (12) | % |
| Interest and dividends on investment securities | | | | | | | | |
| Taxable | 13,317 | | 9,746 | | 3,571 | | 37 | % | 37,916 | | 59,806 | | (21,890) | | (37) | % |
| Tax-exempt | 15,569 | | 14,296 | | 1,273 | | 9 | % | 58,710 | | 58,320 | | 390 | | 1 | % |
| Other interest | 2,031 | | 1,699 | | 332 | | 20 | % | 7,833 | | 9,473 | | (1,640) | | (17) | % |
| Total interest income | 201,726 | | 211,675 | | (9,949) | | (5) | % | 798,189 | | 912,840 | | (114,651) | | (13) | % |
| Interest expense | | | | | | | | |
| Interest on deposits | 3,677 | | 7,762 | | (4,085) | | (53) | % | 18,622 | | 67,639 | | (49,017) | | (72) | % |
| Interest on federal funds purchased and securities sold under agreements to repurchase | 40 | | 32 | | 8 | | 25 | % | 143 | | 485 | | (342) | | (71) | % |
| Interest on other short-term funding | 2 | | 5 | | (3) | | (60) | % | 22 | | 51 | | (29) | | (57) | % |
| Interest on PPPLF | — | | 410 | | (410) | | (100) | % | — | | 1,984 | | (1,984) | | (100) | % |
| Interest on FHLB Advances | 8,514 | | 9,888 | | (1,374) | | (14) | % | 36,493 | | 57,359 | | (20,866) | | (36) | % |
| Interest on long-term funding | 2,730 | | 5,585 | | (2,855) | | (51) | % | 17,053 | | 22,365 | | (5,312) | | (24) | % |
| Total interest expense | 14,963 | | 23,682 | | (8,719) | | (37) | % | 72,334 | | 149,883 | | (77,549) | | (52) | % |
| Net interest income | 186,763 | | 187,993 | | (1,230) | | (1) | % | 725,855 | | 762,957 | | (37,102) | | (5) | % |
| Provision for credit losses | (5,993) | | 16,997 | | (22,990) | | N/M | (88,011) | | 174,006 | | (262,017) | | N/M |
| Net interest income after provision for credit losses | 192,756 | | 170,996 | | 21,760 | | 13 | % | 813,866 | | 588,950 | | 224,916 | | 38 | % |
| Noninterest income | | | | | | | | |
| Wealth management fees | 22,625 | | 22,073 | | 552 | | 3 | % | 89,854 | | 84,957 | | 4,897 | | 6 | % |
| Service charges and deposit account fees | 17,039 | | 15,318 | | 1,721 | | 11 | % | 64,406 | | 56,307 | | 8,099 | | 14 | % |
| Card-based fees | 11,176 | | 9,848 | | 1,328 | | 13 | % | 43,014 | | 38,534 | | 4,480 | | 12 | % |
| Other fee-based revenue | 4,316 | | 4,998 | | (682) | | (14) | % | 17,086 | | 19,238 | | (2,152) | | (11) | % |
Capital markets, net | 9,674 | | 5,898 | | 3,776 | | 64 | % | 30,602 | | 27,966 | | 2,636 | | 9 | % |
| Mortgage banking, net | 8,041 | | 14,537 | | (6,496) | | (45) | % | 50,751 | | 45,580 | | 5,171 | | 11 | % |
| Bank and corporate owned life insurance | 4,704 | | 3,978 | | 726 | | 18 | % | 13,254 | | 13,771 | | (517) | | (4) | % |
| Insurance commissions and fees | 86 | | 92 | | (6) | | (7) | % | 336 | | 45,245 | | (44,909) | | (99) | % |
Asset gains (losses), net(a) | 985 | | (1,356) | | 2,341 | | N/M | 11,009 | | 155,589 | | (144,580) | | (93) | % |
| Investment securities gains (losses), net | — | | — | | — | | N/M | (16) | | 9,222 | | (9,238) | | N/M |
Gains on sale of branches, net(b) | — | | 7,449 | | (7,449) | | (100) | % | 1,038 | | 7,449 | | (6,411) | | (86) | % |
Other | 2,855 | | 2,879 | | (24) | | (1) | % | 11,031 | | 10,200 | | 831 | | 8 | % |
| Total noninterest income | 81,502 | | 85,714 | | (4,212) | | (5) | % | 332,364 | | 514,056 | | (181,692) | | (35) | % |
| Noninterest expense | | | | | | | | |
| Personnel | 107,787 | | 98,033 | | 9,754 | | 10 | % | 426,687 | | 432,151 | | (5,464) | | (1) | % |
| Technology | 20,787 | | 19,574 | | 1,213 | | 6 | % | 81,689 | | 81,214 | | 475 | | 1 | % |
| Occupancy | 16,863 | | 15,678 | | 1,185 | | 8 | % | 63,513 | | 64,064 | | (551) | | (1) | % |
| Business development and advertising | 5,627 | | 5,421 | | 206 | | 4 | % | 21,149 | | 18,428 | | 2,721 | | 15 | % |
| Equipment | 4,905 | | 5,555 | | (650) | | (12) | % | 21,104 | | 21,705 | | (601) | | (3) | % |
| Legal and professional | 4,428 | | 5,737 | | (1,309) | | (23) | % | 21,923 | | 21,546 | | 377 | | 2 | % |
| Loan and foreclosure costs | 1,636 | | 3,758 | | (2,122) | | (56) | % | 8,143 | | 12,600 | | (4,457) | | (35) | % |
| FDIC assessment | 4,800 | | 5,700 | | (900) | | (16) | % | 18,150 | | 20,350 | | (2,200) | | (11) | % |
| Other intangible amortization | 2,203 | | 2,253 | | (50) | | (2) | % | 8,844 | | 10,192 | | (1,348) | | (13) | % |
| Loss on prepayments of FHLB advances | — | | — | | — | | N/M | — | | 44,650 | | (44,650) | | (100) | % |
| Other | 13,173 | | 11,141 | | 2,032 | | 18 | % | 38,721 | | 49,135 | | (10,414) | | (21) | % |
| Total noninterest expense | 182,210 | | 172,850 | | 9,360 | | 5 | % | 709,924 | | 776,034 | | (66,110) | | (9) | % |
| Income before income taxes | 92,048 | | 83,860 | | 8,188 | | 10 | % | 436,307 | | 326,972 | | 109,335 | | 33 | % |
| Income tax expense | 15,171 | | 16,858 | | (1,687) | | (10) | % | 85,313 | | 20,200 | | 65,113 | | N/M |
| Net income | 76,877 | | 67,002 | | 9,875 | | 15 | % | 350,994 | | 306,771 | | 44,223 | | 14 | % |
| Preferred stock dividends | 2,875 | | 5,207 | | (2,332) | | (45) | % | 17,111 | | 18,358 | | (1,247) | | (7) | % |
| Net income available to common equity | $ | 74,002 | | $ | 61,795 | | $ | 12,207 | | 20 | % | $ | 333,883 | | $ | 288,413 | | $ | 45,470 | | 16 | % |
| Earnings per common share | | | | | | | | |
| Basic | $ | 0.49 | | $ | 0.40 | | $ | 0.09 | | 23 | % | $ | 2.20 | | $ | 1.87 | | $ | 0.33 | | 18 | % |
| Diluted | $ | 0.49 | | $ | 0.40 | | $ | 0.09 | | 23 | % | $ | 2.18 | | $ | 1.86 | | $ | 0.32 | | 17 | % |
| Average common shares outstanding | | | | | | | | |
| Basic | 148,697 | | 152,497 | | (3,800) | | (2) | % | 150,773 | | 153,005 | | (2,232) | | (1) | % |
| Diluted | 150,057 | | 153,262 | | (3,205) | | (2) | % | 151,987 | | 153,642 | | (1,655) | | (1) | % |
| | | | | | | | |
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) YTD 2020 includes a gain of $163 million from the sale of Associated Benefits & Risk Consulting.
(b) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell.
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend |
| ($ in thousands, except per share data) | | | Seql Qtr | | | | Comp Qtr |
| 4Q21 | 3Q21 | $ Change | % Change | 2Q21 | 1Q21 | 4Q20 | $ Change | % Change |
| Interest income | | | | | | | | | |
| Interest and fees on loans | $ | 170,809 | | $ | 174,643 | | $ | (3,834) | | (2) | % | $ | 174,228 | | $ | 174,049 | | $ | 185,934 | | $ | (15,125) | | (8) | % |
| Interest and dividends on investment securities | | | | | | | | | |
| Taxable | 13,317 | | 8,745 | | 4,572 | | 52 | % | 8,840 | | 7,014 | | 9,746 | | 3,571 | | 37 | % |
| Tax-exempt | 15,569 | | 14,613 | | 956 | | 7 | % | 14,366 | | 14,162 | | 14,296 | | 1,273 | | 9 | % |
| Other interest | 2,031 | | 2,281 | | (250) | | (11) | % | 1,826 | | 1,694 | | 1,699 | | 332 | | 20 | % |
| Total interest income | 201,726 | | 200,282 | | 1,444 | | 1 | % | 199,260 | | 196,920 | | 211,675 | | (9,949) | | (5) | % |
| Interest expense | | | | | | | | | |
| Interest on deposits | 3,677 | | 4,427 | | (750) | | (17) | % | 4,609 | | 5,909 | | 7,762 | | (4,085) | | (53) | % |
| Interest on federal funds purchased and securities sold under agreements to repurchase | 40 | | 48 | | (8) | | (17) | % | 30 | | 26 | | 32 | | 8 | | 25 | % |
| Interest on other short-term funding | 2 | | 8 | | (6) | | (75) | % | 7 | | 6 | | 5 | | (3) | | (60) | % |
| Interest on PPPLF | — | | — | | — | | N/M | — | | — | | 410 | | (410) | | (100) | % |
| Interest on FHLB Advances | 8,514 | | 8,962 | | (448) | | (5) | % | 9,524 | | 9,493 | | 9,888 | | (1,374) | | (14) | % |
| Interest on long-term funding | 2,730 | | 3,163 | | (433) | | (14) | % | 5,575 | | 5,585 | | 5,585 | | (2,855) | | (51) | % |
| Total interest expense | 14,963 | | 16,607 | | (1,644) | | (10) | % | 19,745 | | 21,018 | | 23,682 | | (8,719) | | (37) | % |
| Net interest income | 186,763 | | 183,675 | | 3,088 | | 2 | % | 179,515 | | 175,902 | | 187,993 | | (1,230) | | (1) | % |
| Provision for credit losses | (5,993) | | (24,010) | | 18,017 | | (75) | % | (35,004) | | (23,004) | | 16,997 | | (22,990) | | N/M |
| Net interest income after provision for credit losses | 192,756 | | 207,685 | | (14,929) | | (7) | % | 214,519 | | 198,906 | | 170,996 | | 21,760 | | 13 | % |
| Noninterest income | | | | | | | | | |
| Wealth management fees | 22,625 | | 22,110 | | 515 | | 2 | % | 22,706 | | 22,414 | | 22,073 | | 552 | | 3 | % |
| Service charges and deposit account fees | 17,039 | | 16,962 | | 77 | | — | % | 15,549 | | 14,855 | | 15,318 | | 1,721 | | 11 | % |
| Card-based fees | 11,176 | | 11,113 | | 63 | | 1 | % | 10,982 | | 9,743 | | 9,848 | | 1,328 | | 13 | % |
| Other fee-based revenue | 4,316 | | 3,929 | | 387 | | 10 | % | 4,244 | | 4,596 | | 4,998 | | (682) | | (14) | % |
| Capital markets, net | 9,674 | | 7,114 | | 2,560 | | 36 | % | 5,696 | | 8,118 | | 5,898 | | 3,776 | | 64 | % |
| Mortgage banking, net | 8,041 | | 10,657 | | (2,616) | | (25) | % | 8,128 | | 23,925 | | 14,537 | | (6,496) | | (45) | % |
| Bank and corporate owned life insurance | 4,704 | | 2,760 | | 1,944 | | 70 | % | 3,088 | | 2,702 | | 3,978 | | 726 | | 18 | % |
| Insurance commissions and fees | 86 | | 88 | | (2) | | (2) | % | 86 | | 76 | | 92 | | (6) | | (7) | % |
| Asset gains (losses), net | 985 | | 5,228 | | (4,243) | | (81) | % | (14) | | 4,809 | | (1,356) | | 2,341 | | N/M |
| Investment securities gains (losses), net | — | | — | | — | | N/M | 24 | | (39) | | — | | — | | N/M |
Gains on sale of branches, net(a) | — | | — | | — | | N/M | 36 | | 1,002 | | 7,449 | | (7,449) | | (100) | % |
| Other | 2,855 | | 2,116 | | 739 | | 35 | % | 2,918 | | 3,141 | | 2,879 | | (24) | | (1) | % |
| Total noninterest income | 81,502 | | 82,076 | | (574) | | (1) | % | 73,443 | | 95,343 | | 85,714 | | (4,212) | | (5) | % |
| Noninterest expense | | | | | | | | | |
| Personnel | 107,787 | | 107,880 | | (93) | | — | % | 106,994 | | 104,026 | | 98,033 | | 9,754 | | 10 | % |
| Technology | 20,787 | | 19,927 | | 860 | | 4 | % | 20,236 | | 20,740 | | 19,574 | | 1,213 | | 6 | % |
| Occupancy | 16,863 | | 15,814 | | 1,049 | | 7 | % | 14,679 | | 16,156 | | 15,678 | | 1,185 | | 8 | % |
| Business development and advertising | 5,627 | | 6,156 | | (529) | | (9) | % | 4,970 | | 4,395 | | 5,421 | | 206 | | 4 | % |
| Equipment | 4,905 | | 5,200 | | (295) | | (6) | % | 5,481 | | 5,518 | | 5,555 | | (650) | | (12) | % |
| Legal and professional | 4,428 | | 4,304 | | 124 | | 3 | % | 6,661 | | 6,530 | | 5,737 | | (1,309) | | (23) | % |
| Loan and foreclosure costs | 1,636 | | 1,616 | | 20 | | 1 | % | 2,671 | | 2,220 | | 3,758 | | (2,122) | | (56) | % |
| FDIC assessment | 4,800 | | 5,000 | | (200) | | (4) | % | 3,600 | | 4,750 | | 5,700 | | (900) | | (16) | % |
| Other intangible amortization | 2,203 | | 2,203 | | — | | — | % | 2,203 | | 2,236 | | 2,253 | | (50) | | (2) | % |
| | | | | | | | | |
| Other | 13,173 | | 9,793 | | 3,380 | | 35 | % | 6,979 | | 8,775 | | 11,141 | | 2,032 | | 18 | % |
| Total noninterest expense | 182,210 | | 177,892 | | 4,318 | | 2 | % | 174,475 | | 175,347 | | 172,850 | | 9,360 | | 5 | % |
| Income before income taxes | 92,048 | | 111,870 | | (19,822) | | (18) | % | 113,487 | | 118,903 | | 83,860 | | 8,188 | | 10 | % |
| Income tax expense | 15,171 | | 23,060 | | (7,889) | | (34) | % | 22,480 | | 24,602 | | 16,858 | | (1,687) | | (10) | % |
| Net income | 76,877 | | 88,809 | | (11,932) | | (13) | % | 91,007 | | 94,301 | | 67,002 | | 9,875 | | 15 | % |
| Preferred stock dividends | 2,875 | | 4,155 | | (1,280) | | (31) | % | 4,875 | | 5,207 | | 5,207 | | (2,332) | | (45) | % |
| Net income available to common equity | $ | 74,002 | | $ | 84,655 | | $ | (10,653) | | (13) | % | $ | 86,131 | | $ | 89,094 | | $ | 61,795 | | $ | 12,207 | | 20 | % |
| Earnings per common share | | | | | | | | | |
| Basic | $ | 0.49 | | $ | 0.56 | | $ | (0.07) | | (13) | % | $ | 0.56 | | $ | 0.58 | | $ | 0.40 | | $ | 0.09 | | 23 | % |
| Diluted | $ | 0.49 | | $ | 0.56 | | $ | (0.07) | | (13) | % | $ | 0.56 | | $ | 0.58 | | $ | 0.40 | | $ | 0.09 | | 23 | % |
| Average common shares outstanding | | | | | | | | | |
| Basic | 148,697 | | 150,046 | | (1,349) | | (1) | % | 152,042 | | 152,355 | | 152,497 | | (3,800) | | (2) | % |
| Diluted | 150,057 | | 151,143 | | (1,086) | | (1) | % | 153,381 | | 153,688 | | 153,262 | | (3,205) | | (2) | % |
|
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell
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Associated Banc-Corp
Selected Quarterly Information | | | | | | | |
| ($ in millions except per share data; shares repurchased and outstanding in thousands) | YTD
Dec 2021 | YTD
Dec 2020 | 4Q21 | 3Q21 | 2Q21 | 1Q21 | 4Q20 |
| Per common share data | | | | | | | |
| Dividends | $ | 0.76 | | $ | 0.72 | | $ | 0.20 | | $ | 0.20 | | $ | 0.18 | | $ | 0.18 | | $ | 0.18 | |
| Market value: | | | | | | | |
| High | 23.92 | | 21.94 | | 23.92 | | 21.85 | | 23.33 | | 23.14 | | 17.17 | |
| Low | 17.20 | | 10.85 | | 21.49 | | 18.56 | | 20.36 | | 17.20 | | 12.68 | |
| Close | | | 22.59 | | 21.42 | | 20.48 | | 21.34 | | 17.05 | |
| Book value | | | 25.66 | | 25.35 | | 24.99 | | 24.56 | | 24.34 | |
| Tangible book value / share | | | 17.87 | | 17.58 | | 17.35 | | 16.95 | | 16.67 | |
| Performance ratios (annualized) | | | | | | | |
| Return on average assets | 1.02 | % | 0.90 | % | 0.87 | % | 1.01 | % | 1.06 | % | 1.14 | % | 0.78 | % |
| Noninterest expense / average assets | 2.06 | % | 2.26 | % | 2.06 | % | 2.03 | % | 2.04 | % | 2.11 | % | 2.02 | % |
| Effective tax rate | 19.55 | % | 6.18 | % | 16.48 | % | 20.61 | % | 19.81 | % | 20.69 | % | 20.10 | % |
Dividend payout ratio(a) | 34.55 | % | 38.50 | % | 40.82 | % | 35.71 | % | 32.14 | % | 31.03 | % | 45.00 | % |
| Net interest margin | 2.39 | % | 2.53 | % | 2.40 | % | 2.38 | % | 2.37 | % | 2.39 | % | 2.49 | % |
| Selected trend information | | | | | | | |
Average full time equivalent employees(b) | 4,003 | | 4,459 | | 3,992 | | 4,010 | | 3,990 | | 4,020 | | 4,134 | |
| Branch count | | | 215 | | 224 | | 224 | | 227 | | 228 | |
Assets under management, at market value(c) | | | $ | 13,679 | | $ | 13,148 | | $ | 13,141 | | $ | 12,553 | | $ | 13,314 | |
| Mortgage loans originated for sale during period | $ | 1,750 | | $ | 1,642 | | $ | 404 | | $ | 456 | | $ | 477 | | $ | 413 | | $ | 323 | |
| Mortgage loan settlements during period | $ | 1,775 | | $ | 1,960 | | $ | 427 | | $ | 463 | | $ | 484 | | $ | 400 | | $ | 339 | |
| Mortgage portfolio loans transferred to held for sale during period | $ | — | | $ | 269 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| Mortgage portfolio serviced for others | | | $ | 6,995 | | $ | 7,057 | | $ | 7,150 | | $ | 7,313 | | $ | 7,744 | |
| Mortgage servicing rights, net / mortgage portfolio serviced for others | | | 0.78 | % | 0.71 | % | 0.68 | % | 0.68 | % | 0.54 | % |
Shares repurchased during period(d) | 6,295 | | 4,264 | | 1,096 | | 2,919 | | 1,314 | | 966 | | — | |
| Shares outstanding, end of period | | | 149,343 | | 149,961 | | 152,865 | | 153,685 | | 153,540 | |
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| Paycheck Protection Program fees, net | | | | | | | |
| Deferred fees, beginning of period | $ | 12 | | $ | — | | $ | 7 | | $ | 15 | | $ | 18 | | $ | 12 | | $ | 21 | |
| Fees received | 18 | | 28 | | — | | — | | 6 | | 12 | | — | |
| Fees recognized | (29) | | (16) | | (5) | | (9) | | (8) | | (7) | | (9) | |
| Deferred fees, end of period | $ | 2 | | $ | 12 | | $ | 2 | | $ | 7 | | $ | 15 | | $ | 18 | | $ | 12 | |
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| Selected quarterly ratios | | | | | | | |
| Loans / deposits | | | 85.10 | % | 84.81 | % | 87.83 | % | 87.30 | % | 92.33 | % |
| Stockholders’ equity / assets | | | 11.47 | % | 11.60 | % | 12.03 | % | 11.94 | % | 12.24 | % |
Risk-based capital(e)(f) | | | | | | | |
| Total risk-weighted assets | | | $ | 27,243 | | $ | 26,304 | | $ | 26,073 | | $ | 25,640 | | $ | 25,903 | |
| Common equity Tier 1 | | | $ | 2,808 | | $ | 2,780 | | $ | 2,790 | | $ | 2,759 | | $ | 2,706 | |
| Common equity Tier 1 capital ratio | | | 10.31 | % | 10.57 | % | 10.70 | % | 10.76 | % | 10.45 | % |
| Tier 1 capital ratio | | | 11.02 | % | 11.30 | % | 11.81 | % | 12.14 | % | 11.81 | % |
| Total capital ratio | | | 13.10 | % | 13.50 | % | 14.02 | % | 14.36 | % | 14.02 | % |
| Tier 1 leverage ratio | | | 8.83 | % | 8.81 | % | 9.23 | % | 9.53 | % | 9.37 | % |
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| Mortgage banking, net | | | | | | | |
Mortgage servicing fees, net(g) | $ | — | | $ | (1) | | $ | 1 | | $ | — | | $ | — | | $ | (1) | | $ | (1) | |
| Gains (losses) and fair value adjustments on loans held for sale | 35 | | 60 | | 3 | | 8 | | 9 | | 15 | | 15 | |
| Fair value adjustment on portfolio loans transferred to held for sale | — | | 4 | | — | | — | | — | | — | | — | |
| Mortgage servicing rights (impairment) recovery | 16 | | (18) | | 4 | | 2 | | — | | 11 | | 1 | |
| Mortgage banking, net | $ | 51 | | $ | 46 | | $ | 8 | | $ | 11 | | $ | 8 | | $ | 24 | | $ | 15 | |
N/M = Not meaningful
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)Does not include repurchases related to tax withholding on equity compensation.
(e)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.
(f)December 31, 2021 data is estimated.
(g)Includes mortgage origination and servicing fees, net of mortgage servicing rights amortization.
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Associated Banc-Corp
Selected Asset Quality Information | | | | | |
| ($ in thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr %
Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
| Allowance for loan losses | | | | | | | |
| Balance at beginning of period | $ | 290,997 | | $ | 318,811 | | (9) | % | $ | 352,938 | | $ | 383,702 | | $ | 384,711 | | (24) | % |
| Provision for loan losses | (4,500) | | (20,000) | | (78) | % | (29,500) | | (26,000) | | 26,500 | | N/M |
| Charge offs | (8,869) | | (10,929) | | (19) | % | (7,681) | | (13,174) | | (30,315) | | (71) | % |
| Recoveries | 2,387 | | 3,115 | | (23) | % | 3,054 | | 8,410 | | 2,805 | | (15) | % |
| Net charge offs | (6,482) | | (7,814) | | (17) | % | (4,628) | | (4,764) | | (27,510) | | (76) | % |
| Balance at end of period | $ | 280,015 | | $ | 290,997 | | (4) | % | $ | 318,811 | | $ | 352,938 | | $ | 383,702 | | (27) | % |
| Allowance for unfunded commitments | | | | | | | |
| Balance at beginning of period | $ | 41,276 | | $ | 45,276 | | (9) | % | $ | 50,776 | | $ | 47,776 | | $ | 57,276 | | (28) | % |
| Provision for unfunded commitments | (1,500) | | (4,000) | | (63) | % | (5,500) | | 3,000 | | (9,500) | | (84) | % |
| Balance at end of period | $ | 39,776 | | $ | 41,276 | | (4) | % | $ | 45,276 | | $ | 50,776 | | $ | 47,776 | | (17) | % |
| Allowance for credit losses on loans (ACLL) | $ | 319,791 | | $ | 332,273 | | (4) | % | $ | 364,087 | | $ | 403,714 | | $ | 431,478 | | (26) | % |
| Provision for credit losses on loans | $ | (6,000) | | $ | (24,000) | | (75) | % | $ | (35,000) | | $ | (23,000) | | $ | 17,000 | | N/M |
| ($ in thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
| Net (charge offs) recoveries | | | | | | | |
| | | | | | | |
| Commercial and industrial | (6,642) | | (9,057) | | (27) | % | 1,333 | | 1,367 | | (8,514) | | (22) | % |
| Commercial real estate—owner occupied | 4 | | 106 | | (96) | % | 5 | | 4 | | 143 | | (97) | % |
| Commercial and business lending | (6,638) | | (8,951) | | (26) | % | 1,338 | | 1,370 | | (8,371) | | (21) | % |
| Commercial real estate—investor | 109 | | 181 | | (40) | % | (5,589) | | (5,886) | | (18,696) | | N/M |
| Real estate construction | 52 | | 18 | | 189 | % | 23 | | 29 | | 43 | | 21 | % |
| Commercial real estate lending | 162 | | 199 | | (19) | % | (5,566) | | (5,857) | | (18,653) | | N/M |
| Total commercial | (6,476) | | (8,752) | | (26) | % | (4,228) | | (4,487) | | (27,024) | | (76) | % |
| Residential mortgage | (6) | | 300 | | N/M | (223) | | (109) | | (162) | | (96) | % |
| Home equity | 546 | | 959 | | (43) | % | 337 | | 344 | | 335 | | 63 | % |
| Other consumer | (534) | | (329) | | 62 | % | (517) | | (521) | | (668) | | (20) | % |
| Auto finance | (11) | | 8 | | N/M | 3 | | 9 | | 9 | | N/M |
| Total consumer | (6) | | 938 | | N/M | (400) | | (277) | | (486) | | (99) | % |
| Total net (charge offs) recoveries | $ | (6,482) | | $ | (7,814) | | (17) | % | $ | (4,628) | | $ | (4,764) | | $ | (27,510) | | (76) | % |
| | | | | | | |
| (In basis points) | Dec 31, 2021 | Sep 30, 2021 | | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
| Net charge offs to average loans (annualized) | | | | | | | |
| | | | | | | |
| Commercial and industrial | (33) | | (46) | | | 7 | | 7 | | (45) | | |
| Commercial real estate—owner occupied | — | | 5 | | | — | | — | | 6 | | |
| Commercial and business lending | (29) | | (40) | | | 6 | | 6 | | (35) | | |
| Commercial real estate—investor | 1 | | 2 | | | (52) | | (55) | | (173) | | |
| Real estate construction | 1 | | — | | | 1 | | 1 | | 1 | | |
| Commercial real estate lending | 1 | | 1 | | | (36) | | (38) | | (121) | | |
| Total commercial | (17) | | (23) | | | (11) | | (12) | | (69) | | |
| Residential mortgage | — | | 2 | | | (1) | | (1) | | (1) | | |
| Home equity | 36 | | 61 | | | 21 | | 21 | | 18 | | |
| Other consumer | (71) | | (44) | | | (72) | | (72) | | (88) | | |
| Auto finance | (9) | | 43 | | | 15 | | 37 | | 29 | | |
| Total consumer | — | | 4 | | | (2) | | (1) | | (2) | | |
| Total net charge offs | (11) | | (13) | | | (8) | | (8) | | (44) | | |
| | | | | | | |
| ($ in thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr %
Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
| Credit Quality | | | | | | | |
| Nonaccrual loans | $ | 130,443 | | $ | 135,062 | | (3) | % | $ | 147,135 | | $ | 163,292 | | $ | 210,854 | | (38) | % |
| Other real estate owned (OREO) | 29,619 | | 33,855 | | (13) | % | 24,000 | | 24,588 | | 14,269 | | 108 | % |
| | | | | | | |
| Total nonperforming assets | $ | 160,062 | | $ | 168,917 | | (5) | % | $ | 171,135 | | $ | 187,880 | | $ | 225,123 | | (29) | % |
| | | | | | | |
| Loans 90 or more days past due and still accruing | $ | 1,263 | | $ | 1,029 | | 23 | % | $ | 1,302 | | $ | 1,675 | | $ | 1,598 | | (21) | % |
| | | | | | | |
| Allowance for credit losses on loans to total loans | 1.32 | % | 1.41 | % | | 1.52 | % | 1.67 | % | 1.76 | % | |
| | | | | | | |
| Allowance for credit losses on loans to nonaccrual loans | 245.16 | % | 246.02 | % | | 247.45 | % | 247.23 | % | 204.63 | % | |
| Nonaccrual loans to total loans | 0.54 | % | 0.57 | % | | 0.61 | % | 0.68 | % | 0.86 | % | |
| Nonperforming assets to total loans plus OREO | 0.66 | % | 0.71 | % | | 0.71 | % | 0.78 | % | 0.92 | % | |
| Nonperforming assets to total assets | 0.46 | % | 0.49 | % | | 0.50 | % | 0.54 | % | 0.67 | % | |
| Year-to-date net charge offs to year-to-date average loans (annualized) | 0.10 | % | 0.10 | % | | 0.08 | % | 0.08 | % | 0.41 | % | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
N/M = Not meaningful
| | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Selected Asset Quality Information (continued) |
| (In thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr %
Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
| Nonaccrual loans | | | | | | | |
| PPP Loans | $ | 46 | | $ | — | | N/M | $ | — | | $ | — | | $ | — | | N/M |
| Commercial and industrial | 6,233 | | 8,497 | | (27) | % | 18,380 | | 33,192 | | 61,859 | | (90) | % |
| Commercial real estate—owner occupied | — | | 7 | | (100) | % | 7 | | 7 | | 1,058 | | (100) | % |
| Commercial and business lending | 6,279 | | 8,504 | | (26) | % | 18,387 | | 33,200 | | 62,917 | | (90) | % |
| Commercial real estate—investor | 60,677 | | 61,504 | | (1) | % | 63,003 | | 58,485 | | 78,220 | | (22) | % |
| Real estate construction | 177 | | 247 | | (28) | % | 247 | | 327 | | 353 | | (50) | % |
| Commercial real estate lending | 60,855 | | 61,751 | | (1) | % | 63,250 | | 58,813 | | 78,573 | | (23) | % |
| Total commercial | 67,134 | | 70,256 | | (4) | % | 81,637 | | 92,012 | | 141,490 | | (53) | % |
| Residential mortgage | 55,362 | | 56,678 | | (2) | % | 56,795 | | 61,256 | | 59,337 | | (7) | % |
| Home equity | 7,726 | | 7,838 | | (1) | % | 8,517 | | 9,792 | | 9,888 | | (22) | % |
| Other consumer | 170 | | 222 | | (23) | % | 131 | | 195 | | 91 | | 87 | % |
| Auto | 52 | | 67 | | (22) | % | 56 | | 36 | | 49 | | 6 | % |
| Total consumer | 63,309 | | 64,806 | | (2) | % | 65,498 | | 71,280 | | 69,364 | | (9) | % |
| Total nonaccrual loans | $ | 130,443 | | $ | 135,062 | | (3) | % | $ | 147,135 | | $ | 163,292 | | $ | 210,854 | | (38) | % |
| | | | | | | |
| Dec 31, 2021 | Sep 30, 2021 | Seql Qtr %
Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
Restructured loans (accruing)(a) | | | | | | | |
| Commercial and industrial | $ | 8,687 | | $ | 11,067 | | (22) | % | $ | 11,569 | | $ | 11,985 | | $ | 12,713 | | (32) | % |
| Commercial real estate—owner occupied | 967 | | 1,031 | | (6) | % | 1,225 | | 1,488 | | 1,711 | | (43) | % |
| Commercial and business lending | 9,655 | | 12,098 | | (20) | % | 12,794 | | 13,473 | | 14,424 | | (33) | % |
| Commercial real estate—investor | 12,866 | | 13,236 | | (3) | % | 13,306 | | 13,627 | | 26,435 | | (51) | % |
| Real estate construction | 242 | | 248 | | (2) | % | 253 | | 256 | | 260 | | (7) | % |
| Commercial real estate lending | 13,108 | | 13,484 | | (3) | % | 13,559 | | 13,884 | | 26,695 | | (51) | % |
| Total commercial | 22,763 | | 25,582 | | (11) | % | 26,353 | | 27,356 | | 41,119 | | (45) | % |
| Residential mortgage | 16,316 | | 15,253 | | 7 | % | 12,227 | | 10,462 | | 7,825 | | 109 | % |
| Home equity | 2,648 | | 2,787 | | (5) | % | 2,451 | | 1,929 | | 1,957 | | 35 | % |
| Other consumer | 803 | | 877 | | (8) | % | 904 | | 1,073 | | 1,191 | | (33) | % |
| | | | | | | |
| Total consumer | 19,768 | | 18,917 | | 4 | % | 15,582 | | 13,464 | | 10,973 | | 80 | % |
| Total restructured loans (accruing) | $ | 42,530 | | $ | 44,499 | | (4) | % | $ | 41,935 | | $ | 40,820 | | $ | 52,092 | | (18) | % |
| Nonaccrual restructured loans (included in nonaccrual loans) | $ | 17,426 | | $ | 15,226 | | 14 | % | $ | 17,237 | | $ | 17,624 | | $ | 20,190 | | (14) | % |
| Dec 31, 2021 | Sep 30, 2021 | Seql Qtr %
Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
| Accruing Loans 30-89 Days Past Due | | | | | | | |
| PPP Loans | $ | 83 | | $ | 568 | | (85) | % | $ | — | | $ | — | | $ | — | | N/M |
| Commercial and industrial | 632 | | 1,229 | | (49) | % | 258 | | 526 | | 6,119 | | (90) | % |
| Commercial real estate—owner occupied | 163 | | 30 | | N/M | 47 | | — | | 373 | | (56) | % |
| Commercial and business lending | 878 | | 1,827 | | (52) | % | 306 | | 526 | | 6,492 | | (86) | % |
| Commercial real estate—investor | 616 | | 17,021 | | (96) | % | 391 | | 5,999 | | 12,793 | | (95) | % |
| Real estate construction | 1,620 | | — | | N/M | 117 | | 977 | | 991 | | 63 | % |
| Commercial real estate lending | 2,236 | | 17,021 | | (87) | % | 509 | | 6,976 | | 13,784 | | (84) | % |
| Total commercial | 3,114 | | 18,848 | | (83) | % | 814 | | 7,502 | | 20,276 | | (85) | % |
| Residential mortgage | 6,169 | | 7,095 | | (13) | % | 5,015 | | 3,973 | | 10,385 | | (41) | % |
| Home equity | 3,711 | | 2,931 | | 27 | % | 2,472 | | 2,352 | | 4,802 | | (23) | % |
| Other consumer | 2,307 | | 1,272 | | 81 | % | 1,036 | | 1,246 | | 1,543 | | 50 | % |
| Auto | 11 | | 10 | | 10 | % | 38 | | 24 | | 57 | | (81) | % |
| Total consumer | 12,198 | | 11,308 | | 8 | % | 8,562 | | 7,594 | | 16,786 | | (27) | % |
| Total accruing loans 30-89 days past due | $ | 15,312 | | $ | 30,156 | | (49) | % | $ | 9,376 | | $ | 15,097 | | $ | 37,062 | | (59) | % |
| | | | | | | |
| Dec 31, 2021 | Sep 30, 2021 | Seql Qtr %
Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr %
Change |
| Potential Problem Loans | | | | | | | |
PPP Loans(b) | $ | 2,000 | | $ | 4,160 | | (52) | % | $ | 8,695 | | $ | 22,398 | | $ | 18,002 | | (89) | % |
| Commercial and industrial | 138,258 | | 124,990 | | 11 | % | 77,064 | | 122,143 | | 121,487 | | 14 | % |
| Commercial real estate—owner occupied | 26,723 | | 21,241 | | 26 | % | 17,828 | | 15,965 | | 26,179 | | 2 | % |
| Commercial and business lending | 166,981 | | 150,391 | | 11 | % | 103,587 | | 160,506 | | 165,668 | | 1 | % |
| Commercial real estate—investor | 106,138 | | 78,962 | | 34 | % | 71,613 | | 85,752 | | 91,396 | | 16 | % |
| Real estate construction | 21,408 | | 19,187 | | 12 | % | 16,465 | | 13,977 | | 19,046 | | 12 | % |
| Commercial real estate lending | 127,546 | | 98,150 | | 30 | % | 88,078 | | 99,728 | | 110,442 | | 15 | % |
| Total commercial | 294,527 | | 248,541 | | 19 | % | 191,665 | | 260,234 | | 276,111 | | 7 | % |
| Residential mortgage | 2,214 | | 2,374 | | (7) | % | 3,024 | | 2,524 | | 3,749 | | (41) | % |
| Home equity | 165 | | 171 | | (4) | % | 1,558 | | 1,729 | | 2,068 | | (92) | % |
| | | | | | | |
| | | | | | | |
| Total consumer | 2,379 | | 2,546 | | (7) | % | 4,583 | | 4,254 | | 5,817 | | (59) | % |
| Total potential problem loans | $ | 296,905 | | $ | 251,087 | | 18 | % | $ | 196,248 | | $ | 264,488 | | $ | 281,928 | | 5 | % |
| | | | | | | |
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Does not include any restructured loans related to the COVID-19 pandemic in accordance with Section 4013 of the CARES Act.
(b) The Corporation's policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter | | | |
| Three Months Ended |
| | December 31, 2021 | September 30, 2021 | December 31, 2020 |
| ($ 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 PPP lending | $ | 115,074 | | $ | 5,055 | | 17.43 | % | $ | 275,414 | | $ | 9,633 | | 13.88 | % | $ | 929,859 | | $ | 10,854 | | 4.64 | % |
| Asset-based lending (ABL) | 125,507 | | 971 | | 3.07 | % | 99,463 | | 766 | | 3.06 | % | 126,202 | | 960 | | 3.03 | % |
| Commercial and business lending (excl PPP & ABL) | 8,715,796 | | 53,401 | | 2.43 | % | 8,609,196 | | 53,333 | | 2.46 | % | 8,387,548 | | 56,514 | | 2.68 | % |
| Commercial real estate lending | 6,134,049 | | 45,040 | | 2.91 | % | 6,160,241 | | 44,859 | | 2.89 | % | 6,157,622 | | 44,636 | | 2.88 | % |
| Total commercial | 15,090,427 | | 104,468 | | 2.75 | % | 15,144,314 | | 108,591 | | 2.85 | % | 15,601,230 | | 112,963 | | 2.88 | % |
| Residential mortgage | 7,751,337 | | 54,952 | | 2.84 | % | 7,817,737 | | 55,305 | | 2.83 | % | 8,029,585 | | 60,292 | | 3.00 | % |
| Total Retail | 953,489 | | 11,775 | | 4.92 | % | 921,906 | | 11,120 | | 4.81 | % | 1,051,022 | | 13,035 | | 4.95 | % |
| | | | | | | | | |
| Total loans | 23,795,253 | | 171,195 | | 2.86 | % | 23,883,957 | | 175,016 | | 2.92 | % | 24,681,837 | | 186,290 | | 3.01 | % |
| Investment securities | | | | | | | | | |
| Taxable | 4,067,612 | | 13,317 | | 1.31 | % | 3,258,587 | | 8,745 | | 1.07 | % | 3,155,508 | | 9,746 | | 1.24 | % |
Tax-exempt(a) | 2,257,106 | | 19,617 | | 3.48 | % | 2,029,126 | | 18,412 | | 3.63 | % | 1,909,512 | | 17,870 | | 3.74 | % |
| Other short-term investments | 1,592,840 | | 2,031 | | 0.51 | % | 2,215,805 | | 2,281 | | 0.41 | % | 985,091 | | 1,699 | | 0.69 | % |
| Investments and other | 7,917,558 | | 34,965 | | 1.76 | % | 7,503,518 | | 29,439 | | 1.57 | % | 6,050,111 | | 29,315 | | 1.94 | % |
| Total earning assets | 31,712,810 | | $ | 206,160 | | 2.59 | % | 31,387,475 | | $ | 204,455 | | 2.59 | % | 30,731,948 | | $ | 215,605 | | 2.80 | % |
| Other assets, net | 3,303,349 | | | | 3,372,013 | | | | 3,343,844 | | | |
| Total assets | $ | 35,016,159 | | | | $ | 34,759,489 | | | | $ | 34,075,792 | | | |
| Liabilities and stockholders' equity | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | |
| Savings | $ | 4,367,233 | | $ | 369 | | 0.03 | % | $ | 4,248,493 | | $ | 377 | | 0.04 | % | $ | 3,628,458 | | $ | 356 | | 0.04 | % |
| Interest-bearing demand | 6,506,438 | | 1,015 | | 0.06 | % | 6,344,504 | | 1,361 | | 0.09 | % | 5,739,983 | | 1,215 | | 0.08 | % |
| Money market | 6,892,803 | | 927 | | 0.05 | % | 7,011,075 | | 1,019 | | 0.06 | % | 6,539,583 | | 1,121 | | 0.07 | % |
| Network transaction deposits | 838,255 | | 239 | | 0.11 | % | 893,991 | | 290 | | 0.13 | % | 1,265,748 | | 468 | | 0.15 | % |
| Time deposits | 1,381,092 | | 1,127 | | 0.32 | % | 1,434,588 | | 1,379 | | 0.38 | % | 1,888,074 | | 4,602 | | 0.97 | % |
| Total interest-bearing deposits | 19,985,821 | | 3,677 | | 0.07 | % | 19,932,650 | | 4,427 | | 0.09 | % | 19,061,847 | | 7,762 | | 0.16 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 293,948 | | 40 | | 0.05 | % | 238,735 | | 48 | | 0.08 | % | 164,091 | | 32 | | 0.08 | % |
| Commercial Paper | 44,250 | | 2 | | 0.01 | % | 55,864 | | 8 | | 0.05 | % | 40,128 | | 5 | | 0.05 | % |
| PPPLF | — | | — | | — | % | — | | — | | — | % | 464,119 | | 410 | | 0.35 | % |
| | | | | | | | | |
| | | | | | | | | |
| FHLB advances | 1,621,097 | | 8,514 | | 2.08 | % | 1,620,790 | | 8,962 | | 2.19 | % | 1,660,274 | | 9,888 | | 2.37 | % |
| Long-term funding | 249,223 | | 2,730 | | 4.38 | % | 288,236 | | 3,163 | | 4.39 | % | 549,307 | | 5,585 | | 4.07 | % |
| Total short and long-term funding | 2,208,518 | | 11,286 | | 2.03 | % | 2,203,625 | | 12,180 | | 2.20 | % | 2,877,919 | | 15,920 | | 2.20 | % |
| Total interest-bearing liabilities | 22,194,339 | | $ | 14,963 | | 0.27 | % | 22,136,276 | | $ | 16,607 | | 0.30 | % | 21,939,766 | | $ | 23,682 | | 0.43 | % |
| Noninterest-bearing demand deposits | 8,416,525 | | | | 8,141,723 | | | | 7,677,003 | | | |
| Other liabilities | 401,433 | | | | 401,077 | | | | 405,430 | | | |
| Stockholders’ equity | 4,003,863 | | | | 4,080,413 | | | | 4,053,593 | | | |
| Total liabilities and stockholders’ equity | $ | 35,016,159 | | | | $ | 34,759,489 | | | | $ | 34,075,792 | | | |
| Interest rate spread | | | 2.32 | % | | | 2.29 | % | | | 2.37 | % |
| Net free funds | | | 0.08 | % | | | 0.09 | % | | | 0.12 | % |
| Fully tax-equivalent net interest income and net interest margin ("NIM") | | $ | 191,197 | | 2.40 | % | | $ | 187,848 | | 2.38 | % | | $ | 191,923 | | 2.49 | % |
| Fully tax-equivalent adjustment | | 4,434 | | | | 4,172 | | | | 3,930 | | |
| Net interest income | | $ | 186,763 | | | | $ | 183,675 | | | | $ | 187,993 | | |
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.
| | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year Over Year |
| Year Ended December 31, |
| | 2021 | 2020 |
| ($ in thousands) | Average
Balance | Interest
Income /Expense | Average
Yield / Rate | Average
Balance | Interest
Income /Expense | Average
Yield / Rate |
| Assets | | | | | | |
| Earning assets | | | | | | |
Loans (a) (b) (c) | | | | | | |
| Commercial PPP lending | $ | 472,216 | | $ | 33,637 | | 7.12 | % | $ | 701,111 | | $ | 21,867 | | 3.12 | % |
| Asset-based lending (ABL) | 120,903 | | 3,704 | | 3.06 | % | 177,710 | | 6,039 | | 3.40 | % |
| Commercial and business lending (excl PPP & ABL) | 8,511,364 | | 212,744 | | 2.50 | % | 8,531,333 | | 252,699 | | 2.96 | % |
| Commercial real estate lending | 6,156,214 | | 178,354 | | 2.90 | % | 5,811,498 | | 192,545 | | 3.31 | % |
| Total commercial | 15,260,697 | | 428,439 | | 2.81 | % | 15,221,651 | | 473,150 | | 3.11 | % |
Residential mortgage | 7,847,564 | | 221,099 | | 2.82 | % | 8,190,190 | | 254,814 | | 3.11 | % |
| Total retail | 949,719 | | 45,723 | | 4.81 | % | 1,125,806 | | 58,655 | | 5.21 | % |
| | | | | | |
| Total loans | 24,057,980 | | 695,260 | | 2.89 | % | 24,537,648 | | 786,619 | | 3.21 | % |
| Investment securities | | | | | | |
| Taxable | 3,383,528 | | 37,916 | | 1.12 | % | 3,295,718 | | 59,806 | | 1.81 | % |
Tax-exempt (a) | 2,036,030 | | 73,975 | | 3.63 | % | 1,930,853 | | 72,901 | | 3.78 | % |
| Other short-term investments | 1,644,995 | | 7,833 | | 0.48 | % | 1,067,788 | | 9,473 | | 0.89 | % |
| Investments and other | 7,064,552 | | 119,724 | | 1.69 | % | 6,294,359 | | 142,179 | | 2.26 | % |
| Total earning assets | 31,122,532 | | $ | 814,984 | | 2.62 | % | 30,832,007 | | $ | 928,799 | | 3.01 | % |
| Other assets, net | 3,341,725 | | | | 3,433,200 | | | |
| Total assets | $ | 34,464,257 | | | | $ | 34,265,207 | | | |
| Liabilities and stockholders' equity | | | | | | |
| Interest-bearing liabilities | | | | | | |
| Interest-bearing deposits | | | | | | |
| Savings | 4,138,732 | | 1,435 | | 0.03 | % | $ | 3,306,385 | | $ | 2,966 | | 0.09 | % |
| Interest-bearing demand | 6,113,660 | | 4,610 | | 0.08 | % | 5,583,144 | | 12,496 | | 0.22 | % |
| Money market | 6,940,513 | | 4,028 | | 0.06 | % | 6,509,924 | | 15,273 | | 0.23 | % |
| Network transaction deposits | 929,544 | | 1,120 | | 0.12 | % | 1,442,951 | | 6,219 | | 0.43 | % |
| Time deposits | 1,495,060 | | 7,429 | | 0.50 | % | 2,281,040 | | 30,685 | | 1.35 | % |
| Total interest-bearing deposits | 19,617,508 | | 18,622 | | 0.09 | % | 19,123,444 | | 67,639 | | 0.35 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 207,132 | | 143 | | 0.07 | % | 175,713 | | 485 | | 0.28 | % |
| Commercial Paper | 49,546 | | 22 | | 0.04 | % | 38,583 | | 41 | | 0.11 | % |
| PPPLF | — | | — | | — | % | 565,371 | | 1,984 | | 0.35 | % |
| Other short-term funding | — | | — | | — | % | 4,226 | | 11 | | 0.25 | % |
| FHLB advances | 1,623,508 | | 36,493 | | 2.25 | % | 2,535,731 | | 57,359 | | 2.26 | % |
| Long-term funding | 407,912 | | 17,053 | | 4.18 | % | 549,143 | | 22,365 | | 4.07 | % |
| Total short and long-term funding | 2,288,098 | | 53,712 | | 2.35 | % | 3,868,767 | | 82,245 | | 2.13 | % |
| Total interest-bearing liabilities | 21,905,605 | | $ | 72,334 | | 0.33 | % | 22,992,211 | | $ | 149,883 | | 0.65 | % |
| Noninterest-bearing demand deposits | 8,075,906 | | | | 6,884,241 | | | |
| Other liabilities | 403,296 | | | | 444,183 | | | |
| Stockholders’ equity | 4,079,449 | | | | 3,944,572 | | | |
| Total liabilities and stockholders’ equity | $ | 34,464,257 | | | | $ | 34,265,207 | | | |
| Interest rate spread | | | 2.29 | % | | | 2.36 | % |
| Net free funds | | | 0.10 | % | | | 0.17 | % |
| Fully tax-equivalent net interest income and net interest margin ("NIM") | | $ | 742,650 | | 2.39 | % | | $ | 778,915 | | 2.53 | % |
| Fully tax-equivalent adjustment | | 16,796 | | | | 15,959 | | |
| Net interest income | | $ | 725,855 | | | | $ | 762,957 | | |
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.
| | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Loan and Deposit Composition | | | | | | | |
| ($ in thousands) | | | | | | | |
| Period end loan composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change |
| PPP Loans | $ | 66,070 | | $ | 182,121 | | (64) | % | $ | 405,482 | | $ | 836,566 | | $ | 767,757 | | (91) | % |
| Asset-based lending | 178,027 | | 111,027 | | 60 | % | 105,726 | | 137,537 | | 137,476 | | 29 | % |
| Commercial and industrial | 8,208,289 | | 7,816,432 | | 5 | % | 7,803,393 | | 7,526,964 | | 7,563,945 | | 9 | % |
| Commercial real estate—owner occupied | 971,326 | | 879,554 | | 10 | % | 880,755 | | 883,237 | | 900,912 | | 8 | % |
| Commercial and business lending | 9,423,711 | | 8,989,133 | | 5 | % | 9,195,355 | | 9,384,303 | | 9,370,091 | | 1 | % |
| Commercial real estate—investor | 4,384,569 | | 4,296,489 | | 2 | % | 4,300,651 | | 4,260,706 | | 4,342,584 | | 1 | % |
| Real estate construction | 1,808,976 | | 1,834,871 | | (1) | % | 1,880,897 | | 1,882,299 | | 1,840,417 | | (2) | % |
| Commercial real estate lending | 6,193,545 | | 6,131,360 | | 1 | % | 6,181,549 | | 6,143,004 | | 6,183,001 | | — | % |
| Total commercial | 15,617,256 | | 15,120,493 | | 3 | % | 15,376,904 | | 15,527,307 | | 15,553,091 | | — | % |
| Residential mortgage | 7,567,310 | | 7,590,895 | | — | % | 7,638,372 | | 7,685,218 | | 7,878,324 | | (4) | % |
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| Home equity | 595,615 | | 608,566 | | (2) | % | 631,783 | | 651,647 | | 707,255 | | (16) | % |
| Other consumer | 301,723 | | 294,979 | | 2 | % | 292,660 | | 288,990 | | 301,876 | | — | % |
| Auto finance | 143,045 | | 6,739 | | N/M | 7,817 | | 9,165 | | 11,177 | | N/M |
| Total consumer | 8,607,693 | | 8,501,180 | | 1 | % | 8,570,632 | | 8,635,020 | | 8,898,632 | | (3) | % |
| Total loans | $ | 24,224,949 | | $ | 23,621,673 | | 3 | % | $ | 23,947,536 | | $ | 24,162,328 | | $ | 24,451,724 | | (1) | % |
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| Period end deposit and customer funding composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change |
| Noninterest-bearing demand | $ | 8,504,077 | | $ | 8,170,105 | | 4 | % | $ | 7,999,143 | | $ | 8,496,194 | | $ | 7,661,728 | | 11 | % |
| Savings | 4,410,198 | | 4,278,453 | | 3 | % | 4,182,651 | | 4,032,830 | | 3,650,085 | | 21 | % |
| Interest-bearing demand | 7,019,782 | | 6,407,844 | | 10 | % | 5,969,285 | | 5,748,353 | | 6,090,869 | | 15 | % |
| Money market | 7,185,111 | | 7,583,978 | | (5) | % | 7,640,825 | | 7,838,437 | | 7,322,769 | | (2) | % |
| Time deposits | 1,347,262 | | 1,410,886 | | (5) | % | 1,472,395 | | 1,561,352 | | 1,757,030 | | (23) | % |
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| Total deposits | 28,466,430 | | 27,851,266 | | 2 | % | 27,264,299 | | 27,677,166 | | 26,482,481 | | 7 | % |
Customer funding(a) | 354,142 | | 322,081 | | 10 | % | 226,160 | | 182,228 | | 245,247 | | 44 | % |
| Total deposits and customer funding | $ | 28,820,572 | | $ | 28,173,348 | | 2 | % | $ | 27,490,459 | | $ | 27,859,394 | | $ | 26,727,727 | | 8 | % |
Network transaction deposits(b) | $ | 766,965 | | $ | 929,174 | | (17) | % | $ | 871,603 | | $ | 1,054,634 | | $ | 1,197,093 | | (36) | % |
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| Net deposits and customer funding (Total deposits and customer funding, excluding network transaction deposits) | $ | 28,053,607 | | $ | 27,244,174 | | 3 | % | $ | 26,618,856 | | $ | 26,804,761 | | $ | 25,530,634 | | 10 | % |
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| Quarter average loan composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change |
| PPP Loans | $ | 115,074 | | $ | 275,414 | | (58) | % | $ | 701,440 | | $ | 806,699 | | $ | 929,859 | | (88) | % |
| Asset-based lending | 125,507 | | 99,463 | | 26 | % | 121,153 | | 137,862 | | 126,202 | | (1) | % |
| Commercial and industrial | 7,816,260 | | 7,733,148 | | 1 | % | 7,437,726 | | 7,493,413 | | 7,482,983 | | 4 | % |
| Commercial real estate—owner occupied | 899,536 | | 876,047 | | 3 | % | 878,746 | | 906,027 | | 904,565 | | (1) | % |
| Commercial and business lending | 8,956,378 | | 8,984,072 | | — | % | 9,139,064 | | 9,344,000 | | 9,443,609 | | (5) | % |
| Commercial real estate—investor | 4,304,579 | | 4,297,783 | | — | % | 4,321,109 | | 4,303,365 | | 4,289,703 | | — | % |
| Real estate construction | 1,829,470 | | 1,862,458 | | (2) | % | 1,838,619 | | 1,867,836 | | 1,867,919 | | (2) | % |
| Commercial real estate lending | 6,134,049 | | 6,160,241 | | — | % | 6,159,728 | | 6,171,202 | | 6,157,622 | | — | % |
| Total commercial | 15,090,427 | | 15,144,314 | | — | % | 15,298,792 | | 15,515,202 | | 15,601,230 | | (3) | % |
| Residential mortgage | 7,751,337 | | 7,817,737 | | (1) | % | 7,861,139 | | 7,962,691 | | 8,029,585 | | (3) | % |
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| Home equity | 600,963 | | 620,601 | | (3) | % | 641,438 | | 680,738 | | 736,059 | | (18) | % |
| Other consumer | 299,406 | | 294,160 | | 2 | % | 288,786 | | 294,528 | | 302,995 | | (1) | % |
| Auto finance | 53,120 | | 7,144 | | N/M | 8,458 | | 10,190 | | 11,968 | | N/M |
| Total consumer | 8,704,826 | | 8,739,643 | | — | % | 8,799,822 | | 8,948,147 | | 9,080,607 | | (4) | % |
Total loans(c) | $ | 23,795,253 | | $ | 23,883,957 | | — | % | $ | 24,098,614 | | $ | 24,463,349 | | $ | 24,681,837 | | (4) | % |
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| Quarter average deposit composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change |
| Noninterest-bearing demand | $ | 8,416,525 | | $ | 8,141,723 | | 3 | % | $ | 8,069,851 | | $ | 7,666,561 | | $ | 7,677,003 | | 10 | % |
| Savings | 4,367,233 | | 4,248,493 | | 3 | % | 4,121,553 | | 3,810,321 | | 3,628,458 | | 20 | % |
| Interest-bearing demand | 6,506,438 | | 6,344,504 | | 3 | % | 5,879,173 | | 5,713,270 | | 5,739,983 | | 13 | % |
| Money market | 6,892,803 | | 7,011,075 | | (2) | % | 6,981,482 | | 6,875,730 | | 6,539,583 | | 5 | % |
| Network transaction deposits | 838,255 | | 893,991 | | (6) | % | 908,869 | | 1,080,109 | | 1,265,748 | | (34) | % |
| Time deposits | 1,381,092 | | 1,434,588 | | (4) | % | 1,509,705 | | 1,658,568 | | 1,888,074 | | (27) | % |
| Total deposits | $ | 28,402,345 | | $ | 28,074,374 | | 1 | % | $ | 27,470,633 | | $ | 26,804,559 | | $ | 26,738,850 | | 6 | % |
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)Nonaccrual loans and loans held for sale have been included in the average balances.
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Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation | YTD | YTD | | | | | |
| ($ in millions, except per share data) | Dec 2021 | Dec 2020 | 4Q21 | 3Q21 | 2Q21 | 1Q21 | 4Q20 |
Tangible common equity reconciliation(a) | | | | | | | |
| Common equity | | | $ | 3,832 | | $ | 3,802 | | $ | 3,820 | | $ | 3,774 | | $ | 3,737 | |
| Goodwill and other intangible assets, net | | | (1,163) | | (1,165) | | (1,167) | | (1,170) | | (1,178) | |
| Tangible common equity | | | $ | 2,669 | | $ | 2,636 | | $ | 2,652 | | $ | 2,605 | | $ | 2,560 | |
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Tangible assets reconciliation(a) | | | | | | | |
| Total assets | | | $ | 35,104 | | $ | 34,440 | | $ | 34,153 | | $ | 34,575 | | $ | 33,420 | |
| Goodwill and other intangible assets, net | | | (1,163) | | (1,165) | | (1,167) | | (1,170) | | (1,178) | |
| Tangible assets | | | $ | 33,941 | | $ | 33,274 | | $ | 32,985 | | $ | 33,406 | | $ | 32,242 | |
Average tangible common equity and average common equity tier 1 reconciliation(a) | | | | | | | |
| Common equity | $ | 3,789 | | $ | 3,633 | | $ | 3,811 | | $ | 3,807 | | $ | 3,788 | | $ | 3,750 | | $ | 3,700 | |
| Goodwill and other intangible assets, net | (1,169) | | (1,228) | | (1,164) | | (1,167) | | (1,169) | | (1,175) | | (1,178) | |
| Tangible common equity | 2,621 | | 2,406 | | 2,646 | | 2,640 | | 2,619 | | 2,576 | | 2,522 | |
| Modified CECL transitional amount | 102 | | 115 | | 91 | | 97 | | 106 | | 116 | | 123 | |
| Accumulated other comprehensive loss (income) | 1 | | 3 | | 19 | | (5) | | (3) | | (5) | | (4) | |
| Deferred tax assets (liabilities), net | 40 | | 44 | | 40 | | 40 | | 40 | | 41 | | 42 | |
| Average common equity tier 1 | $ | 2,764 | | $ | 2,567 | | $ | 2,795 | | $ | 2,772 | | $ | 2,762 | | $ | 2,727 | | $ | 2,683 | |
Average tangible assets reconciliation(a) | | | | | | | |
| Total assets | $ | 34,464 | | $ | 34,265 | | $ | 35,016 | | $ | 34,759 | | $ | 34,380 | | $ | 33,684 | | $ | 34,076 | |
| Goodwill and other intangible assets, net | (1,169) | | (1,228) | | (1,164) | | (1,167) | | (1,169) | | (1,175) | | (1,178) | |
| Tangible assets | $ | 33,296 | | $ | 33,038 | | $ | 33,852 | | $ | 33,593 | | $ | 33,211 | | $ | 32,510 | | $ | 32,898 | |
Selected trend information(b) | | | | | | | |
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| Wealth management fees | $ | 90 | | $ | 85 | | $ | 23 | | $ | 22 | | $ | 23 | | $ | 22 | | $ | 22 | |
| Service charges and deposit account fees | 64 | | 56 | | 17 | | 17 | | 16 | | 15 | | 15 | |
| Card-based fees | 43 | | 39 | | 11 | | 11 | | 11 | | 10 | | 10 | |
| Other fee-based revenue | 17 | | 19 | | 4 | | 4 | | 4 | | 5 | | 5 | |
| Fee-based revenue | 214 | | 199 | | 55 | | 54 | | 53 | | 52 | | 52 | |
| Gain on sale of ABRC | — | | 163 | | — | | — | | — | | — | | — | |
Insurance commissions and fees(c) | — | | 45 | | — | | — | | — | | — | | — | |
| Other | 118 | | 106 | | 26 | | 28 | | 20 | | 44 | | 33 | |
| Total noninterest income | $ | 332 | | $ | 514 | | $ | 82 | | $ | 82 | | $ | 73 | | $ | 95 | | $ | 86 | |
Pre-tax pre-provision income(d) | | | | | | | |
| Income before income taxes | $ | 436 | | $ | 327 | | $ | 92 | | $ | 112 | | $ | 113 | | $ | 119 | | $ | 84 | |
| Provision for credit losses | (88) | | 174 | | (6) | | (24) | | (35) | | (23) | | 17 | |
| Pre-tax pre-provision income | $ | 348 | | $ | 501 | | $ | 86 | | $ | 88 | | $ | 78 | | $ | 96 | | $ | 101 | |
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Selected equity and performance ratios(a)(e) | | | | | | | |
| Tangible common equity / tangible assets | | | 7.86 | % | 7.92 | % | 8.04 | % | 7.80 | % | 7.94 | % |
| Return on average equity | 8.60 | % | 7.78 | % | 7.62 | % | 8.63 | % | 8.84 | % | 9.32 | % | 6.58 | % |
| Return on average tangible common equity | 12.74 | % | 11.99 | % | 11.09 | % | 12.72 | % | 13.19 | % | 14.03 | % | 9.75 | % |
| Return on average common equity Tier 1 | 12.08 | % | 11.23 | % | 10.50 | % | 12.11 | % | 12.51 | % | 13.25 | % | 9.16 | % |
| Return on average tangible assets | 1.05 | % | 0.93 | % | 0.90 | % | 1.05 | % | 1.10 | % | 1.18 | % | 0.81 | % |
| Average stockholders' equity / average assets | 11.84 | % | 11.51 | % | 11.43 | % | 11.74 | % | 12.01 | % | 12.18 | % | 11.90 | % |
Efficiency ratio reconciliation(f) | | | | | | | |
| Federal Reserve efficiency ratio | 66.33 | % | 61.76 | % | 67.36 | % | 65.43 | % | 66.81 | % | 65.74 | % | 59.68 | % |
| Fully tax-equivalent adjustment | (1.04) | % | (0.77) | % | (1.10) | % | (1.01) | % | (1.07) | % | (0.97) | % | (0.84) | % |
| Other intangible amortization | (0.84) | % | (0.80) | % | (0.82) | % | (0.83) | % | (0.87) | % | (0.82) | % | (0.82) | % |
| Fully tax-equivalent efficiency ratio | 64.47 | % | 60.20 | % | 65.46 | % | 63.61 | % | 64.88 | % | 63.96 | % | 58.02 | % |
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| Provision for unfunded commitments adjustment | 0.74 | % | (0.55) | % | 0.55 | % | 1.48 | % | 2.14 | % | (1.09) | % | 3.42 | % |
| Asset gains (losses), net adjustment | 0.67 | % | 8.20 | % | 0.24 | % | 1.29 | % | — | % | 1.12 | % | (0.30) | % |
| Acquisitions, branch sales, and initiatives | (0.53) | % | (5.08) | % | (1.43) | % | (0.91) | % | 0.01 | % | 0.22 | % | 1.68 | % |
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| Adjusted efficiency ratio | 65.36 | % | 62.76 | % | 64.82 | % | 65.46 | % | 67.02 | % | 64.21 | % | 62.83 | % |
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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)The sale of ABRC in June 2020, largely eliminated insurance commissions and fees revenue.
(d)Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings and provide greater understanding of ongoing operations and enhanced comparability of results with prior periods.
(e)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.
(f)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 excludes the provision for unfunded commitments, other intangible amortization, acquisition related costs, and announced initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net, asset gains (losses), net, and gain on sale of branches, net. Management believes the adjusted efficiency ratio is a meaningful measure as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and provides a better measure as to how the Corporation is managing its expenses by adjusting for acquisition related costs, provision for unfunded commitments, asset gains (losses), net, branch sales, and announced initiatives.
