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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 Third Quarter 2022 Net Income Available to Common Equity of $93 Million, or $0.62 per Common Share
Results driven by strong loan and deposit growth, expanding margins and stable credit
GREEN BAY, Wis. -- October 20, 2022 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $93 million, or $0.62 per common share, for the quarter ended September 30, 2022. These amounts compare to earnings of $84 million, or $0.56 per common share, for the quarter ended June 30, 2022 and earnings of $85 million, or $0.56 per common share, for the quarter ended September 30, 2021.
“Our third quarter results were a reflection of both the strength and resilience we continue to see in our markets and our ongoing efforts to deepen relationships and deliver capabilities through our strategic initiatives,” said President and CEO Andy Harmening. “Within our footprint, unemployment remains low, the consumer remains healthy, and our commercial customers continue to seek opportunities amid an uncertain macro environment. With these trends as a backdrop, our initiatives helped bring in more than $1 billion in high-quality loans and $600 million in deposits during the quarter. This growth was supported by substantial margin expansion and stable credit trends. All of which combined to drive enhanced profitability and a return on average tangible common equity1 north of 14%.”
“While we continue to keep a close eye on the current economic environment, we’ve been working to de-risk our balance sheet for over a decade,” Harmening continued. “Our relentless focus on credit quality and the diversifying benefits of our strategic plan put us in a position to deliver enhanced value to our stakeholders over the remainder of 2022 and beyond.”
Third Quarter 2022 Highlights (all comparisons to the second quarter of 2022)
•End of period total commercial loans were up $720 million to $17.5 billion
•End of period total consumer loans were up $602 million to $10.3 billion
•End of period total deposits were up $622 million to $29.2 billion
•Quarterly net interest margin was up 42 basis points to 3.13%
•Noninterest income was down $5 million to $71 million
•Noninterest expense was up $14 million to $196 million, including an incremental $6 million contribution to our charitable foundation vs. the prior quarter
•Provision for credit losses on loans was $17 million, compared to a provision of zero in the prior quarter
•Net income available to common equity was up $9 million to $93 million
1This is a non-GAAP financial measure. See page 10 of the attached tables for a reconciliation of non-GAAP financial measures to GAAP financial measures.
Loans
Third quarter 2022 average total loans of $27.1 billion were up 7%, or $1.7 billion, from the prior quarter and were up 13%, or $3.2 billion, from the same period last year. With respect to third quarter 2022 average balances by loan category:
•Commercial and business lending (excluding PPP) increased $597 million from the prior quarter and increased $1.5 billion compared to the same period last year to $10.2 billion.
•Commercial real estate lending increased $405 million from the prior quarter and increased $608 million from the same period last year to $6.8 billion.
•Consumer lending was $10.1 billion, up $665 million from the prior quarter and up $1.4 billion from the same period last year.
•PPP loans decreased $9 million from the prior quarter and decreased $271 million from the same period last year to $5 million.
Third quarter 2022 period-end total loans of $27.8 billion were up 5%, or $1.3 billion, from the prior quarter and were up 18%, or $4.2 billion, from the same period last year. With respect to third quarter 2022 period-end balances by loan category:
•Commercial and business lending (excluding PPP) increased $395 million from the prior quarter and increased $1.8 billion from the same period last year to $10.6 billion.
•Commercial real estate lending increased $334 million from the prior quarter and increased $768 million from the same period last year to $6.9 billion.
•Consumer lending was $10.3 billion, up $602 million from the prior quarter and up $1.8 billion from the same period last year.
•PPP loans decreased $8 million from the prior quarter and decreased $181 million from the same period last year to $1 million.
Deposits
Third quarter 2022 average deposits of $28.9 billion were up 2%, or $704 million, compared to the prior quarter and were up 3%, or $800 million, from the same period last year. With respect to third quarter 2022 average balances by deposit category:
•Noninterest-bearing demand deposits decreased $14 million from the prior quarter and decreased $22 million from the same period last year to $8.1 billion.
•Savings increased $53 million from the prior quarter and increased $487 million from the same period last year to $4.7 billion.
•Interest-bearing demand deposits increased $174 million from the prior quarter and increased $243 million from the same period last year to $6.6 billion.
•Money market deposits increased $418 million from the prior quarter and increased $317 million from the same period last year to $7.3 billion.
•Time deposits decreased $24 million from the prior quarter and decreased $204 million from the same period last year to $1.2 billion.
•Network transaction deposits increased $98 million from the prior quarter and decreased $21 million from the same period last year to $873 million.
Third quarter 2022 period-end deposits of $29.2 billion were up 2%, or $622 million, compared to the prior quarter and were up 5%, or $1.3 billion, from the same period last year. With respect to third quarter 2022 period-end balances by deposit category:
•Noninterest-bearing demand deposits increased $139 million from the prior quarter and increased $54 million from the same period last year to $8.2 billion.
•Savings increased $1 million from the prior quarter and increased $430 million from the same period last year to $4.7 billion.
•Interest-bearing demand deposits increased $332 million from the prior quarter and increased $714 million from the same period last year to $7.1 billion.
•Money market deposits increased $140 million from the prior quarter and increased $325 million from the same period last year to $7.9 billion.
•Time deposits increased $10 million from the prior quarter and decreased $177 million from the same period last year to $1.2 billion.
•Network transaction deposits (included in money market and interest-bearing deposits) decreased $28 million from the prior quarter and decreased $65 million from the same period last year to $864 million.
Net Interest Income and Net Interest Margin
Third quarter 2022 net interest income of $264 million increased $48 million, or 22%, from the prior quarter and increased $81 million, or 44%, from the same period last year. The net interest margin increased to 3.13%, reflecting a 42 basis point improvement from the prior quarter and a 75 basis point increase from the same period last year.
•The average yield on total loans for the third quarter of 2022 increased 90 basis points from the prior quarter and increased 114 basis points from the same period last year to 4.06%.
•The average cost of total interest-bearing liabilities for the third quarter of 2022 increased 45 basis points from the prior quarter and increased 51 basis points from the same period last year to 0.81%.
•The net free funds benefit for the third quarter of 2022 increased 12 basis points from the prior quarter and increased 13 basis points compared to the same period last year to 0.22%.
We now expect short-term interest rates to rise by 75 basis points following the Federal Open Market Committee (FOMC) meeting in November and expect a 50 basis point increase following the FOMC's December meeting. Based on these assumptions, we now expect our 2022 net interest income to exceed $935 million.
Noninterest Income
Third quarter 2022 total noninterest income of $71 million decreased $5 million, or 6%, from the prior quarter and decreased $11 million, or 14%, from the same period last year. With respect to third quarter 2022 noninterest income line items:
•Mortgage Banking, net was $2 million for the third quarter, down $4 million from the prior quarter and down $9 million from the same period last year, driven by slowing refinance activity and higher retention of mortgages on our balance sheet.
•Service charges and deposit account fees decreased $1 million from the prior quarter and decreased $2 million from the same period last year.
•Wealth management fees decreased $1 million from the prior quarter and decreased $2 million from the same period last year.
•Investment securities gains (losses) increased $6 million from the prior quarter and increased $6 million from the same period last year.
Noninterest Expense
Third quarter 2022 total noninterest expense of $196 million increased $14 million, or 8%, from the prior quarter and increased $18 million, or 10%, from the same period last year as we continued to invest in people and technology. Our third quarter noninterest expense also included an incremental $6 million expense for a contribution to our charitable foundation. With respect to other third quarter 2022 noninterest expense line items:
•Personnel expense increased $6 million from the prior quarter and increased $10 million from the same period last year.
•Technology expense increased $1 million from the prior quarter and increased $3 million from the same period last year.
•Occupancy expense decreased slightly from the prior quarter and decreased $2 million from the same period last year.
We now expect total noninterest expense of approximately $740 million to $750 million for 2022.
Taxes
The third quarter 2022 tax expense was $26 million compared to $23 million of tax expense in the prior quarter and $23 million of tax expense in the same period last year. The effective tax rate for third quarter 2022 was 21.4% compared to an effective tax rate of 21.2% in the prior quarter and an effective tax rate of 20.6% in the same period last year.
We continue to expect the 2022 effective tax rate to be approximately 21%, assuming no change in the statutory corporate tax rate.
Credit
The third quarter 2022 provision for credit losses on loans was $17 million, compared to a provision of zero in the prior quarter and a negative provision of $24 million in the same period last year. Provision build in the third quarter was largely a function of increased loan volume. With respect to third quarter 2022 credit quality:
•Nonaccrual loans of $116 million were up $8 million from the prior quarter and down $19 million from the same period last year. The nonaccrual loans to total loans ratio was 0.42% in the third quarter, up from 0.41% in the prior quarter and down from 0.57% in the same period last year.
•Third quarter net charge offs of $2 million were up compared to negligible net charge offs in the prior quarter and were down compared to net charge offs of $8 million in the same period last year.
•The allowance for credit losses on loans (ACLL) of $333 million was up $15 million compared to the prior quarter and flat compared to the same period last year. The ACLL to total loans ratio was 1.20% in the third quarter, flat compared to the prior quarter and down from 1.41% in the same period last year.
Going forward, we expect any provision adjustments 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 9.4% at September 30, 2022. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
Based on current market dynamics, we now expect our TCE ratio to land within a range of 7.00% to 7.25% at year-end.
THIRD QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, October 20, 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 third quarter 2022 earnings call. The third quarter 2022 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 $38 billion and is the largest bank holding company based in Wisconsin. 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. The Company also operates loan production offices in Indiana, Michigan, Missouri, New York, 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) | September 30, 2022 | June 30, 2022 | Seql Qtr $ Change | March 31, 2022 | December 31, 2021 | September 30, 2021 | Comp Qtr $ Change |
| Assets | | | | | | | |
| Cash and due from banks | $ | 386,231 | | $ | 397,364 | | $ | (11,133) | | $ | 334,138 | | $ | 343,831 | | $ | 378,927 | | $ | 7,304 | |
| Interest-bearing deposits in other financial institutions | 112,173 | | 436,887 | | (324,714) | | 166,929 | | 681,684 | | 1,281,916 | | (1,169,743) | |
| Federal funds sold and securities purchased under agreements to resell | 4,015 | | 32,820 | | (28,805) | | — | | — | | 25,000 | | (20,985) | |
| Investment securities available for sale, at fair value | 2,487,312 | | 2,677,511 | | (190,199) | | 2,780,803 | | 4,332,015 | | 3,893,379 | | (1,406,067) | |
| Investment securities held to maturity, net, at amortized cost | 3,951,491 | | 3,945,206 | | 6,285 | | 3,939,855 | | 2,238,947 | | 1,929,735 | | 2,021,756 | |
| Equity securities | 24,879 | | 19,039 | | 5,840 | | 18,560 | | 18,352 | | 17,939 | | 6,940 | |
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 279,334 | | 237,616 | | 41,718 | | 168,281 | | 168,281 | | 168,281 | | 111,053 | |
| Residential loans held for sale | 51,134 | | 42,676 | | 8,458 | | 91,582 | | 136,638 | | 158,202 | | (107,068) | |
| Commercial loans held for sale | — | | 44,721 | | (44,721) | | — | | — | | — | | — | |
| Loans | 27,817,280 | | 26,494,698 | | 1,322,582 | | 24,531,926 | | 24,224,949 | | 23,621,673 | | 4,195,607 | |
| Allowance for loan losses | (292,904) | | (280,771) | | (12,133) | | (279,058) | | (280,015) | | (290,997) | | (1,907) | |
| Loans, net | 27,524,376 | | 26,213,927 | | 1,310,449 | | 24,252,867 | | 23,944,934 | | 23,330,676 | | 4,193,700 | |
| Tax credit and other investments | 275,247 | | 275,165 | | 82 | | 284,561 | | 293,733 | | 301,490 | | (26,243) | |
| Premises and equipment, net | 379,462 | | 387,633 | | (8,171) | | 387,550 | | 385,173 | | 383,131 | | (3,669) | |
| Bank and corporate owned life insurance | 677,129 | | 675,347 | | 1,782 | | 679,538 | | 680,021 | | 683,610 | | (6,481) | |
| Goodwill | 1,104,992 | | 1,104,992 | | — | | 1,104,992 | | 1,104,992 | | 1,104,992 | | — | |
| Other intangible assets, net | 51,485 | | 53,687 | | (2,202) | | 55,890 | | 58,093 | | 60,296 | | (8,811) | |
Mortgage servicing rights, net(a) | 78,352 | | 76,570 | | 1,782 | | 67,015 | | 54,862 | | 50,329 | | 28,023 | |
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| Interest receivable | 115,782 | | 95,426 | | 20,356 | | 83,120 | | 80,528 | | 79,011 | | 36,771 | |
| Other assets | 546,214 | | 519,403 | | 26,811 | | 540,218 | | 582,168 | | 592,753 | | (46,539) | |
| Total assets | $ | 38,049,607 | | $ | 37,235,990 | | $ | 813,617 | | $ | 34,955,900 | | $ | 35,104,253 | | $ | 34,439,666 | | $ | 3,609,941 | |
| Liabilities and stockholders’ equity | | | | | | | |
| Noninterest-bearing demand deposits | $ | 8,224,579 | | $ | 8,085,702 | | $ | 138,877 | | $ | 8,315,699 | | $ | 8,504,077 | | $ | 8,170,105 | | $ | 54,474 | |
| Interest-bearing deposits | 20,974,003 | | 20,490,874 | | 483,129 | | 20,089,710 | | 19,962,353 | | 19,681,161 | | 1,292,842 | |
| Total deposits | 29,198,581 | | 28,576,577 | | 622,004 | | 28,405,409 | | 28,466,430 | | 27,851,266 | | 1,347,315 | |
| Federal funds purchased and securities sold under agreements to repurchase | 276,674 | | 682,839 | | (406,165) | | 368,768 | | 319,532 | | 267,943 | | 8,731 | |
| Commercial paper | 7,687 | | 22,781 | | (15,094) | | 30,593 | | 34,730 | | 54,553 | | (46,866) | |
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| FHLB advances | 3,777,478 | | 3,258,039 | | 519,439 | | 1,537,948 | | 1,621,047 | | 1,620,880 | | 2,156,598 | |
| Other long-term funding | 249,484 | | 249,820 | | (336) | | 249,797 | | 249,324 | | 249,160 | | 324 | |
| Allowance for unfunded commitments | 39,776 | | 36,776 | | 3,000 | | 38,776 | | 39,776 | | 41,276 | | (1,500) | |
| Accrued expenses and other liabilities | 545,976 | | 449,776 | | 96,200 | | 376,322 | | 348,560 | | 359,626 | | 186,350 | |
| Total liabilities | 34,095,656 | | 33,276,608 | | 819,048 | | 31,007,613 | | 31,079,399 | | 30,444,705 | | 3,650,951 | |
| Stockholders’ equity | | | | | | | |
| Preferred equity | 194,112 | | 193,195 | | 917 | | 193,195 | | 193,195 | | 193,195 | | 917 | |
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| Common equity | 3,759,840 | | 3,766,187 | | (6,347) | | 3,755,092 | | 3,831,658 | | 3,801,766 | | (41,926) | |
| Total stockholders’ equity | 3,953,952 | | 3,959,382 | | (5,430) | | 3,948,287 | | 4,024,853 | | 3,994,961 | | (41,009) | |
| Total liabilities and stockholders’ equity | $ | 38,049,607 | | $ | 37,235,990 | | $ | 813,617 | | $ | 34,955,900 | | $ | 35,104,253 | | $ | 34,439,666 | | $ | 3,609,941 | |
Numbers may not sum due to rounding.
(a) On January 1, 2022, the Corporation made the irrevocable election to account for mortgage servicing rights, net at fair value. For all prior periods, mortgage servicing rights, net were carried at lower of cost or market.
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Associated Banc-Corp
Consolidated Statements of Income (Unaudited) | Comp Qtr | YTD | YTD | Comp YTD |
| ($ in thousands, except per share data) | 3Q22 | 3Q21 | $ Change | % Change | Sep 2022 | Sep 2021 | $ Change | % Change |
| Interest income | | | | | | | | |
| Interest and fees on loans | $ | 275,666 | | $ | 174,643 | | $ | 101,023 | | 58 | % | $ | 643,239 | | $ | 522,920 | | $ | 120,319 | | 23 | % |
| Interest and dividends on investment securities | | | | | | | | |
| Taxable | 19,221 | | 8,745 | | 10,476 | | 120 | % | 54,009 | | 24,600 | | 29,409 | | 120 | % |
| Tax-exempt | 16,538 | | 14,613 | | 1,925 | | 13 | % | 49,025 | | 43,141 | | 5,884 | | 14 | % |
| Other interest | 3,284 | | 2,281 | | 1,003 | | 44 | % | 7,696 | | 5,802 | | 1,894 | | 33 | % |
| Total interest income | 314,708 | | 200,282 | | 114,426 | | 57 | % | 753,969 | | 596,462 | | 157,507 | | 26 | % |
| Interest expense | | | | | | | | |
| Interest on deposits | 26,000 | | 4,427 | | 21,573 | | N/M | 37,590 | | 14,945 | | 22,645 | | 152 | % |
| Interest on federal funds purchased and securities sold under agreements to repurchase | 756 | | 48 | | 708 | | N/M | 1,200 | | 103 | | 1,097 | | N/M |
| Interest on other short-term funding | 1 | | 8 | | (7) | | (88) | % | 2 | | 21 | | (19) | | (90) | % |
| Interest on FHLB Advances | 20,792 | | 8,962 | | 11,830 | | 132 | % | 38,663 | | 27,979 | | 10,684 | | 38 | % |
| Interest on long-term funding | 2,722 | | 3,163 | | (441) | | (14) | % | 8,182 | | 14,323 | | (6,141) | | (43) | % |
| Total interest expense | 50,270 | | 16,607 | | 33,663 | | N/M | 85,637 | | 57,371 | | 28,266 | | 49 | % |
| Net interest income | 264,439 | | 183,675 | | 80,764 | | 44 | % | 668,332 | | 539,092 | | 129,240 | | 24 | % |
| Provision for credit losses | 16,998 | | (24,010) | | 41,008 | | N/M | 13,006 | | (82,018) | | 95,024 | | N/M |
| Net interest income after provision for credit losses | 247,440 | | 207,685 | | 39,755 | | 19 | % | 655,326 | | 621,110 | | 34,216 | | 6 | % |
| Noninterest income | | | | | | | | |
| Wealth management fees | 19,984 | | 22,110 | | (2,126) | | (10) | % | 63,719 | | 67,229 | | (3,510) | | (5) | % |
| Service charges and deposit account fees | 15,029 | | 16,962 | | (1,933) | | (11) | % | 48,392 | | 47,366 | | 1,026 | | 2 | % |
| Card-based fees | 11,479 | | 11,113 | | 366 | | 3 | % | 32,847 | | 31,838 | | 1,009 | | 3 | % |
| Other fee-based revenue | 4,487 | | 3,929 | | 558 | | 14 | % | 12,613 | | 12,769 | | (156) | | (1) | % |
Capital markets, net | 7,675 | | 7,114 | | 561 | | 8 | % | 24,331 | | 20,928 | | 3,403 | | 16 | % |
| Mortgage banking, net | 2,098 | | 10,657 | | (8,559) | | (80) | % | 16,635 | | 42,710 | | (26,075) | | (61) | % |
| Bank and corporate owned life insurance | 1,827 | | 2,760 | | (933) | | (34) | % | 8,004 | | 8,551 | | (547) | | (6) | % |
| Asset gains, net | 18 | | 5,228 | | (5,210) | | (100) | % | 1,883 | | 10,024 | | (8,141) | | (81) | % |
| Investment securities gains (losses), net | 5,664 | | — | | 5,664 | | N/M | 5,676 | | (16) | | 5,692 | | N/M |
Gains on sale of branches, net(a) | — | | — | | — | | N/M | — | | 1,038 | | (1,038) | | (100) | % |
Other | 2,527 | | 2,205 | | 322 | | 15 | % | 6,613 | | 8,425 | | (1,812) | | (22) | % |
| Total noninterest income | 70,788 | | 82,076 | | (11,288) | | (14) | % | 220,713 | | 250,862 | | (30,149) | | (12) | % |
| Noninterest expense | | | | | | | | |
| Personnel | 118,243 | | 107,880 | | 10,363 | | 10 | % | 335,720 | | 318,900 | | 16,820 | | 5 | % |
| Technology | 22,694 | | 19,927 | | 2,767 | | 14 | % | 65,401 | | 60,902 | | 4,499 | | 7 | % |
| Occupancy | 13,717 | | 15,814 | | (2,097) | | (13) | % | 43,948 | | 46,649 | | (2,701) | | (6) | % |
| Business development and advertising | 6,778 | | 6,156 | | 622 | | 10 | % | 17,388 | | 15,522 | | 1,866 | | 12 | % |
| Equipment | 4,921 | | 5,200 | | (279) | | (5) | % | 14,841 | | 16,199 | | (1,358) | | (8) | % |
| Legal and professional | 4,159 | | 4,304 | | (145) | | (3) | % | 14,118 | | 17,495 | | (3,377) | | (19) | % |
| Loan and foreclosure costs | 1,631 | | 1,616 | | 15 | | 1 | % | 5,121 | | 6,508 | | (1,387) | | (21) | % |
| FDIC assessment | 5,800 | | 5,000 | | 800 | | 16 | % | 16,300 | | 13,350 | | 2,950 | | 22 | % |
| Other intangible amortization | 2,203 | | 2,203 | | — | | — | % | 6,608 | | 6,642 | | (34) | | (1) | % |
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| Other | 15,645 | | 9,793 | | 5,852 | | 60 | % | 31,057 | | 25,547 | | 5,510 | | 22 | % |
| Total noninterest expense | 195,791 | | 177,892 | | 17,899 | | 10 | % | 550,503 | | 527,713 | | 22,790 | | 4 | % |
| Income before income taxes | 122,438 | | 111,870 | | 10,568 | | 9 | % | 325,536 | | 344,259 | | (18,723) | | (5) | % |
| Income tax expense | 26,163 | | 23,060 | | 3,103 | | 13 | % | 68,176 | | 70,142 | | (1,966) | | (3) | % |
| Net income | 96,275 | | 88,809 | | 7,466 | | 8 | % | 257,360 | | 274,117 | | (16,757) | | (6) | % |
| Preferred stock dividends | 2,875 | | 4,155 | | (1,280) | | (31) | % | 8,625 | | 14,236 | | (5,611) | | (39) | % |
| Net income available to common equity | $ | 93,400 | | $ | 84,655 | | $ | 8,745 | | 10 | % | $ | 248,735 | | $ | 259,880 | | $ | (11,145) | | (4) | % |
| Earnings per common share | | | | | | | | |
| Basic | $ | 0.62 | | $ | 0.56 | | $ | 0.06 | | 11 | % | $ | 1.66 | | $ | 1.70 | | $ | (0.04) | | (2) | % |
| Diluted | $ | 0.62 | | $ | 0.56 | | $ | 0.06 | | 11 | % | $ | 1.65 | | $ | 1.69 | | $ | (0.04) | | (2) | % |
| Average common shares outstanding | | | | | | | | |
| Basic | 149,321 | | 150,046 | | (725) | | — | % | 149,063 | | 151,473 | | (2,410) | | (2) | % |
| Diluted | 150,262 | | 151,143 | | (881) | | (1) | % | 150,205 | | 152,701 | | (2,496) | | (2) | % |
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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
Consolidated Statements of Income (Unaudited) - Quarterly Trend |
| ($ in thousands, except per share data) | | | Seql Qtr | | | | Comp Qtr |
| 3Q22 | 2Q22 | $ Change | % Change | 1Q22 | 4Q21 | 3Q21 | $ Change | % Change |
| Interest income | | | | | | | | | |
| Interest and fees on loans | $ | 275,666 | | $ | 199,876 | | $ | 75,790 | | 38 | % | $ | 167,697 | | $ | 170,809 | | $ | 174,643 | | $ | 101,023 | | 58 | % |
| Interest and dividends on investment securities | | | | | | | | | |
| Taxable | 19,221 | | 18,317 | | 904 | | 5 | % | 16,472 | | 13,317 | | 8,745 | | 10,476 | | 120 | % |
| Tax-exempt | 16,538 | | 16,379 | | 159 | | 1 | % | 16,108 | | 15,569 | | 14,613 | | 1,925 | | 13 | % |
| Other interest | 3,284 | | 2,420 | | 864 | | 36 | % | 1,993 | | 2,031 | | 2,281 | | 1,003 | | 44 | % |
| Total interest income | 314,708 | | 236,991 | | 77,717 | | 33 | % | 202,270 | | 201,726 | | 200,282 | | 114,426 | | 57 | % |
| Interest expense | | | | | | | | | |
| Interest on deposits | 26,000 | | 8,019 | | 17,981 | | N/M | 3,571 | | 3,677 | | 4,427 | | 21,573 | | N/M |
| Interest on federal funds purchased and securities sold under agreements to repurchase | 756 | | 406 | | 350 | | 86 | % | 38 | | 40 | | 48 | | 708 | | N/M |
| Interest on other short-term funding | 1 | | 1 | | — | | — | % | 1 | | 2 | | 8 | | (7) | | (88) | % |
| Interest on FHLB Advances | 20,792 | | 9,689 | | 11,103 | | 115 | % | 8,182 | | 8,514 | | 8,962 | | 11,830 | | 132 | % |
| Interest on long-term funding | 2,722 | | 2,730 | | (8) | | — | % | 2,730 | | 2,730 | | 3,163 | | (441) | | (14) | % |
| Total interest expense | 50,270 | | 20,845 | | 29,425 | | 141 | % | 14,522 | | 14,963 | | 16,607 | | 33,663 | | N/M |
| Net interest income | 264,439 | | 216,146 | | 48,293 | | 22 | % | 187,747 | | 186,763 | | 183,675 | | 80,764 | | 44 | % |
| Provision for credit losses | 16,998 | | (2) | | 17,000 | | N/M | (3,990) | | (5,993) | | (24,010) | | 41,008 | | N/M |
| Net interest income after provision for credit losses | 247,440 | | 216,148 | | 31,292 | | 14 | % | 191,737 | | 192,756 | | 207,685 | | 39,755 | | 19 | % |
| Noninterest income | | | | | | | | | |
| Wealth management fees | 19,984 | | 21,332 | | (1,348) | | (6) | % | 22,404 | | 22,625 | | 22,110 | | (2,126) | | (10) | % |
| Service charges and deposit account fees | 15,029 | | 16,506 | | (1,477) | | (9) | % | 16,856 | | 17,039 | | 16,962 | | (1,933) | | (11) | % |
| Card-based fees | 11,479 | | 11,442 | | 37 | | — | % | 9,926 | | 11,176 | | 11,113 | | 366 | | 3 | % |
| Other fee-based revenue | 4,487 | | 4,360 | | 127 | | 3 | % | 3,766 | | 4,316 | | 3,929 | | 558 | | 14 | % |
| Capital markets, net | 7,675 | | 8,010 | | (335) | | (4) | % | 8,646 | | 9,674 | | 7,114 | | 561 | | 8 | % |
| Mortgage banking, net | 2,098 | | 6,145 | | (4,047) | | (66) | % | 8,391 | | 8,041 | | 10,657 | | (8,559) | | (80) | % |
| Bank and corporate owned life insurance | 1,827 | | 4,106 | | (2,279) | | (56) | % | 2,071 | | 4,704 | | 2,760 | | (933) | | (34) | % |
| | | | | | | | | |
| Asset gains, net | 18 | | 1,677 | | (1,659) | | (99) | % | 188 | | 985 | | 5,228 | | (5,210) | | (100) | % |
| Investment securities gains (losses), net | 5,664 | | (8) | | 5,672 | | N/M | 21 | | — | | — | | 5,664 | | N/M |
| | | | | | | | | |
| Other | 2,527 | | 1,888 | | 639 | | 34 | % | 2,198 | | 2,941 | | 2,205 | | 322 | | 15 | % |
| Total noninterest income | 70,788 | | 75,458 | | (4,670) | | (6) | % | 74,467 | | 81,502 | | 82,076 | | (11,288) | | (14) | % |
| Noninterest expense | | | | | | | | | |
| Personnel | 118,243 | | 112,666 | | 5,577 | | 5 | % | 104,811 | | 107,787 | | 107,880 | | 10,363 | | 10 | % |
| Technology | 22,694 | | 21,223 | | 1,471 | | 7 | % | 21,485 | | 20,787 | | 19,927 | | 2,767 | | 14 | % |
| Occupancy | 13,717 | | 14,151 | | (434) | | (3) | % | 16,080 | | 16,863 | | 15,814 | | (2,097) | | (13) | % |
| Business development and advertising | 6,778 | | 5,655 | | 1,123 | | 20 | % | 4,954 | | 5,627 | | 6,156 | | 622 | | 10 | % |
| Equipment | 4,921 | | 4,960 | | (39) | | (1) | % | 4,960 | | 4,905 | | 5,200 | | (279) | | (5) | % |
| Legal and professional | 4,159 | | 4,873 | | (714) | | (15) | % | 5,087 | | 4,428 | | 4,304 | | (145) | | (3) | % |
| Loan and foreclosure costs | 1,631 | | 1,476 | | 155 | | 11 | % | 2,014 | | 1,636 | | 1,616 | | 15 | | 1 | % |
| FDIC assessment | 5,800 | | 5,400 | | 400 | | 7 | % | 5,100 | | 4,800 | | 5,000 | | 800 | | 16 | % |
| Other intangible amortization | 2,203 | | 2,203 | | — | | — | % | 2,203 | | 2,203 | | 2,203 | | — | | — | % |
| | | | | | | | | |
| Other | 15,645 | | 8,815 | | 6,830 | | 77 | % | 6,597 | | 13,173 | | 9,793 | | 5,852 | | 60 | % |
| Total noninterest expense | 195,791 | | 181,420 | | 14,371 | | 8 | % | 173,292 | | 182,210 | | 177,892 | | 17,899 | | 10 | % |
| Income before income taxes | 122,438 | | 110,187 | | 12,251 | | 11 | % | 92,912 | | 92,048 | | 111,870 | | 10,568 | | 9 | % |
| Income tax expense | 26,163 | | 23,363 | | 2,800 | | 12 | % | 18,650 | | 15,171 | | 23,060 | | 3,103 | | 13 | % |
| Net income | 96,275 | | 86,824 | | 9,451 | | 11 | % | 74,262 | | 76,877 | | 88,809 | | 7,466 | | 8 | % |
| Preferred stock dividends | 2,875 | | 2,875 | | — | | — | % | 2,875 | | 2,875 | | 4,155 | | (1,280) | | (31) | % |
| Net income available to common equity | $ | 93,400 | | $ | 83,949 | | $ | 9,451 | | 11 | % | $ | 71,387 | | $ | 74,002 | | $ | 84,655 | | $ | 8,745 | | 10 | % |
| Earnings per common share | | | | | | | | | |
| Basic | $ | 0.62 | | $ | 0.56 | | $ | 0.06 | | 11 | % | $ | 0.48 | | $ | 0.49 | | $ | 0.56 | | $ | 0.06 | | 11 | % |
| Diluted | $ | 0.62 | | $ | 0.56 | | $ | 0.06 | | 11 | % | $ | 0.47 | | $ | 0.49 | | $ | 0.56 | | $ | 0.06 | | 11 | % |
| Average common shares outstanding | | | | | | | | | |
| Basic | 149,321 | | 149,083 | | 238 | | — | % | 148,781 | | 148,697 | | 150,046 | | (725) | | — | % |
| Diluted | 150,262 | | 150,203 | | 59 | | — | % | 150,492 | | 150,057 | | 151,143 | | (881) | | (1) | % |
|
N/M = Not meaningful
Numbers may not sum due to rounding.
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Associated Banc-Corp
Selected Quarterly Information | | | | | | | |
| ($ in millions except per share data; shares repurchased and outstanding in thousands) | YTD
Sep 2022 | YTD
Sep 2021 | 3Q22 | 2Q22 | 1Q22 | 4Q21 | 3Q21 |
| Per common share data | | | | | | | |
| Dividends | $ | 0.60 | | $ | 0.56 | | $ | 0.20 | | $ | 0.20 | | $ | 0.20 | | $ | 0.20 | | $ | 0.20 | |
| Market value: | | | | | | | |
| High | 25.71 | | 23.33 | | 21.87 | | 22.48 | | 25.71 | | 23.92 | | 21.85 | |
| Low | 17.63 | | 17.20 | | 17.63 | | 18.01 | | 22.41 | | 21.49 | | 18.56 | |
| Close | | | 20.08 | | 18.26 | | 22.76 | | 22.59 | | 21.42 | |
| Book value / share | | | 25.01 | | 25.09 | | 25.03 | | 25.66 | | 25.35 | |
| Tangible book value / share | | | 17.32 | | 17.37 | | 17.29 | | 17.87 | | 17.58 | |
| Performance ratios (annualized) | | | | | | | |
| Return on average assets | 0.95 | % | 1.07 | % | 1.02 | % | 0.97 | % | 0.86 | % | 0.87 | % | 1.01 | % |
| Noninterest expense / average assets | 2.04 | % | 2.06 | % | 2.08 | % | 2.04 | % | 2.00 | % | 2.06 | % | 2.03 | % |
| Effective tax rate | 20.94 | % | 20.37 | % | 21.37 | % | 21.20 | % | 20.07 | % | 16.48 | % | 20.61 | % |
Dividend payout ratio(a) | 36.14 | % | 32.94 | % | 32.26 | % | 35.71 | % | 41.67 | % | 40.82 | % | 35.71 | % |
| Net interest margin | 2.76 | % | 2.38 | % | 3.13 | % | 2.71 | % | 2.42 | % | 2.40 | % | 2.38 | % |
| Selected trend information | | | | | | | |
Average full time equivalent employees(b) | 4,101 | | 4,006 | | 4,182 | | 4,101 | | 4,018 | | 3,992 | | 4,010 | |
| Branch count | | | 215 | | 215 | | 215 | | 215 | | 224 | |
Assets under management, at market value(c) | | | $ | 11,142 | | $ | 11,561 | | $ | 12,937 | | $ | 13,679 | | $ | 13,148 | |
| Mortgage loans originated for sale during period | $ | 536 | | $ | 1,345 | | $ | 132 | | $ | 152 | | $ | 252 | | $ | 404 | | $ | 456 | |
| Mortgage loan settlements during period | $ | 620 | | $ | 1,348 | | $ | 120 | | $ | 204 | | $ | 296 | | $ | 427 | | $ | 463 | |
| | | | | | | |
| Mortgage portfolio serviced for others | | | $ | 6,800 | | $ | 6,910 | | $ | 6,972 | | $ | 6,995 | | $ | 7,057 | |
Mortgage servicing rights, net / mortgage portfolio serviced for others(d) | | | 1.15 | % | 1.11 | % | 0.96 | % | 0.78 | % | 0.71 | % |
Shares repurchased during period(e) | — | | 5,199 | | — | | — | | — | | 1,096 | | 2,919 | |
| Shares outstanding, end of period | | | 150,328 | | 150,126 | | 150,038 | | 149,343 | | 149,961 | |
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| Selected quarterly ratios | | | | | | | |
| Loans / deposits | | | 95.27 | % | 92.71 | % | 86.36 | % | 85.10 | % | 84.81 | % |
| Stockholders’ equity / assets | | | 10.39 | % | 10.63 | % | 11.30 | % | 11.47 | % | 11.60 | % |
Risk-based capital(f)(g) | | | | | | | |
| Total risk-weighted assets | | | $ | 31,406 | | $ | 29,864 | | $ | 27,781 | | $ | 27,243 | | $ | 26,304 | |
| Common equity Tier 1 | | | $ | 2,956 | | $ | 2,897 | | $ | 2,838 | | $ | 2,808 | | $ | 2,780 | |
| Common equity Tier 1 capital ratio | | | 9.41 | % | 9.70 | % | 10.22 | % | 10.31 | % | 10.57 | % |
| Tier 1 capital ratio | | | 10.03 | % | 10.35 | % | 10.91 | % | 11.02 | % | 11.30 | % |
| Total capital ratio | | | 11.41 | % | 11.74 | % | 12.41 | % | 13.10 | % | 13.50 | % |
| Tier 1 leverage ratio | | | 8.66 | % | 8.87 | % | 8.86 | % | 8.83 | % | 8.81 | % |
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| Mortgage banking, net | | | | | | | |
Mortgage servicing fees, net(h) | $ | 6 | | $ | (1) | | $ | 2 | | $ | 2 | | $ | 2 | | $ | 1 | | $ | — | |
| Gains (losses) and fair value adjustments on loans held for sale | 1 | | 32 | | 1 | | — | | 1 | | 3 | | 8 | |
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Changes in mortgage servicing rights valuation, net of economic hedge(d) | 10 | | 12 | | (1) | | 5 | | 6 | | 4 | | 2 | |
| Mortgage banking, net | $ | 17 | | $ | 43 | | $ | 2 | | $ | 6 | | $ | 8 | | $ | 8 | | $ | 11 | |
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)On January 1, 2022, the Corporation made the irrevocable election to account for mortgage servicing rights at fair value. For all prior periods, mortgage servicing rights were carried at lower of cost or market.
(e)Does not include repurchases related to tax withholding on equity compensation.
(f)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.
(g)September 30, 2022 data is estimated.
(h)Includes mortgage origination and servicing fees, net of mortgage servicing rights amortization/decay.
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Associated Banc-Corp
Selected Asset Quality Information | | | | | |
| ($ in thousands) | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr %
Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change |
| Allowance for loan losses | | | | | | | |
| Balance at beginning of period | $ | 280,771 | | $ | 279,058 | | 1 | % | $ | 280,015 | | $ | 290,997 | | $ | 318,811 | | (12) | % |
| Provision for loan losses | 14,000 | | 2,000 | | N/M | (3,000) | | (4,500) | | (20,000) | | N/M |
| Charge offs | (3,346) | | (1,791) | | 87 | % | (2,028) | | (8,869) | | (10,929) | | (69) | % |
| Recoveries | 1,478 | | 1,504 | | (2) | % | 4,072 | | 2,387 | | 3,115 | | (53) | % |
| Net (charge offs) recoveries | (1,867) | | (287) | | N/M | 2,044 | | (6,482) | | (7,814) | | (76) | % |
| Balance at end of period | $ | 292,904 | | $ | 280,771 | | 4 | % | $ | 279,058 | | $ | 280,015 | | $ | 290,997 | | 1 | % |
| Allowance for unfunded commitments | | | | | | | |
| Balance at beginning of period | $ | 36,776 | | $ | 38,776 | | (5) | % | $ | 39,776 | | $ | 41,276 | | $ | 45,276 | | (19) | % |
| Provision for unfunded commitments | 3,000 | | (2,000) | | N/M | (1,000) | | (1,500) | | (4,000) | | N/M |
| Balance at end of period | $ | 39,776 | | $ | 36,776 | | 8 | % | $ | 38,776 | | $ | 39,776 | | $ | 41,276 | | (4) | % |
| Allowance for credit losses on loans (ACLL) | $ | 332,680 | | $ | 317,547 | | 5 | % | $ | 317,835 | | $ | 319,791 | | $ | 332,273 | | — | % |
| Provision for credit losses on loans | $ | 17,000 | | $ | — | | N/M | $ | (4,000) | | $ | (6,000) | | $ | (24,000) | | N/M |
| ($ in thousands) | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr % Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change |
| Net (charge offs) recoveries | | | | | | | |
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Asset-based lending & equipment finance(a) | $ | — | | $ | — | | N/M | $ | — | | $ | 27 | | $ | 91 | | (100) | % |
| Commercial and industrial | (897) | | (444) | | 102 | % | 1,854 | | (6,669) | | (9,149) | | (90) | % |
| Commercial real estate—owner occupied | 3 | | 4 | | (25) | % | 3 | | 4 | | 106 | | (97) | % |
| Commercial and business lending | (894) | | (440) | | 103 | % | 1,857 | | (6,638) | | (8,951) | | (90) | % |
| Commercial real estate—investor | — | | — | | N/M | — | | 109 | | 181 | | (100) | % |
| Real estate construction | 9 | | 2 | | N/M | 32 | | 52 | | 18 | | (50) | % |
| Commercial real estate lending | 9 | | 2 | | N/M | 32 | | 162 | | 199 | | (95) | % |
| Total commercial | (885) | | (439) | | 102 | % | 1,889 | | (6,476) | | (8,752) | | (90) | % |
| Residential mortgage | (42) | | 220 | | N/M | 288 | | (6) | | 300 | | N/M |
| Auto finance | (165) | | (14) | | N/M | 4 | | (11) | | 8 | | N/M |
| Home equity | (101) | | 461 | | N/M | 315 | | 546 | | 959 | | N/M |
| Other consumer | (675) | | (516) | | 31 | % | (451) | | (534) | | (329) | | 105 | % |
| Total consumer | (983) | | 151 | | N/M | 155 | | (6) | | 938 | | N/M |
| Total net (charge offs) recoveries | $ | (1,867) | | $ | (287) | | N/M | $ | 2,044 | | $ | (6,482) | | $ | (7,814) | | (76) | % |
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| (In basis points) | Sep 30, 2022 | Jun 30, 2022 | | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | |
| Net (charge offs) recoveries to average loans (annualized) | | | | | | | |
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Asset-based lending & equipment finance(a) | — | | — | | | — | | 9 | | 36 | | |
| Commercial and industrial | (4) | | (2) | | | 10 | | (34) | | (47) | | |
| Commercial real estate—owner occupied | — | | — | | | — | | — | | 5 | | |
| Commercial and business lending | (3) | | (2) | | | 8 | | (29) | | (40) | | |
| Commercial real estate—investor | — | | — | | | — | | 1 | | 2 | | |
| Real estate construction | — | | — | | | 1 | | 1 | | — | | |
| Commercial real estate lending | — | | — | | | — | | 1 | | 1 | | |
| Total commercial | (2) | | (1) | | | 5 | | (17) | | (23) | | |
| Residential mortgage | — | | 1 | | | 2 | | — | | 2 | | |
| Auto finance | (7) | | (1) | | | 1 | | (9) | | 43 | | |
| Home equity | (7) | | 32 | | | 22 | | 36 | | 61 | | |
| Other consumer | (89) | | (70) | | | (62) | | (71) | | (44) | | |
| Total consumer | (4) | | 1 | | | 1 | | — | | 4 | | |
| Total net (charge offs) recoveries | (3) | | — | | | 3 | | (11) | | (13) | | |
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| ($ in thousands) | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr %
Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change |
| Credit Quality | | | | | | | |
| Nonaccrual loans | $ | 116,406 | | $ | 108,345 | | 7 | % | $ | 143,221 | | $ | 130,443 | | $ | 135,062 | | (14) | % |
| Other real estate owned (OREO) | 16,373 | | 17,879 | | (8) | % | 18,194 | | 29,619 | | 33,855 | | (52) | % |
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| Repossessed Assets | $ | 299 | | $ | 102 | | 193 | % | $ | — | | $ | — | | $ | — | | N/M |
| Total nonperforming assets | $ | 133,078 | | $ | 126,327 | | 5 | % | $ | 161,414 | | $ | 160,062 | | $ | 168,917 | | (21) | % |
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| Loans 90 or more days past due and still accruing | $ | 1,417 | | $ | 1,555 | | (9) | % | $ | 1,595 | | $ | 1,263 | | $ | 1,029 | | 38 | % |
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| Allowance for credit losses on loans to total loans | 1.20 | % | 1.20 | % | | 1.30 | % | 1.32 | % | 1.41 | % | |
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| Allowance for credit losses on loans to nonaccrual loans | 285.79 | % | 293.09 | % | | 221.92 | % | 245.16 | % | 246.02 | % | |
| Nonaccrual loans to total loans | 0.42 | % | 0.41 | % | | 0.58 | % | 0.54 | % | 0.57 | % | |
| Nonperforming assets to total loans plus OREO and repossessed assets | 0.48 | % | 0.48 | % | | 0.66 | % | 0.66 | % | 0.71 | % | |
| Nonperforming assets to total assets | 0.35 | % | 0.34 | % | | 0.46 | % | 0.46 | % | 0.49 | % | |
| Annualized year-to-date net charge offs (recoveries) to year-to-date average loans | — | % | (0.01) | % | | (0.03) | % | 0.10 | % | 0.10 | % | |
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N/M = Not meaningful
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Associated Banc-Corp
Selected Asset Quality Information (continued) | |
| (In thousands) | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr %
Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change | |
| Nonaccrual loans | | | | | | | | |
| PPP Loans | $ | — | | $ | — | | N/M | $ | 41 | | $ | 46 | | $ | — | | N/M | |
| Commercial and industrial | 15,576 | | 843 | | N/M | 225 | | 6,233 | | 8,497 | | 83 | % | |
| Commercial real estate—owner occupied | — | | — | | N/M | — | | — | | 7 | | (100) | % | |
| Commercial and business lending | 15,576 | | 843 | | N/M | 266 | | 6,279 | | 8,504 | | 83 | % | |
| Commercial real estate—investor | 37,479 | | 46,823 | | (20) | % | 80,886 | | 60,677 | | 61,504 | | (39) | % | |
| Real estate construction | 141 | | 604 | | (77) | % | 609 | | 177 | | 247 | | (43) | % | |
| Commercial real estate lending | 37,620 | | 47,427 | | (21) | % | 81,495 | | 60,855 | | 61,751 | | (39) | % | |
| Total commercial | 53,196 | | 48,270 | | 10 | % | 81,761 | | 67,134 | | 70,256 | | (24) | % | |
| Residential mortgage | 55,485 | | 52,840 | | 5 | % | 53,827 | | 55,362 | | 56,678 | | (2) | % | |
| Auto finance | 302 | | 53 | | N/M | 49 | | 52 | | 67 | | N/M | |
| Home equity | 7,325 | | 7,100 | | 3 | % | 7,490 | | 7,726 | | 7,838 | | (7) | % | |
| Other consumer | 98 | | 83 | | 18 | % | 95 | | 170 | | 222 | | (56) | % | |
| Total consumer | 63,210 | | 60,075 | | 5 | % | 61,460 | | 63,309 | | 64,806 | | (2) | % | |
| Total nonaccrual loans | $ | 116,406 | | $ | 108,345 | | 7 | % | $ | 143,221 | | $ | 130,443 | | $ | 135,062 | | (14) | % | |
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| Sep 30, 2022 | Jun 30, 2022 | Seql Qtr %
Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change | |
| Restructured loans (accruing) | | | | | | | | |
| Commercial and industrial | $ | 14,829 | | $ | 13,882 | | 7 | % | $ | 7,426 | | $ | 8,687 | | $ | 11,067 | | 34 | % | |
| Commercial real estate—owner occupied | 369 | | 421 | | (12) | % | 473 | | 967 | | 1,031 | | (64) | % | |
| Commercial and business lending | 15,198 | | 14,303 | | 6 | % | 7,899 | | 9,655 | | 12,098 | | 26 | % | |
| Commercial real estate—investor | 733 | | 943 | | (22) | % | 2,045 | | 12,866 | | 13,236 | | (94) | % | |
| Real estate construction | 165 | | 179 | | (8) | % | 183 | | 242 | | 248 | | (33) | % | |
| Commercial real estate lending | 898 | | 1,122 | | (20) | % | 2,228 | | 13,108 | | 13,484 | | (93) | % | |
| Total commercial | 16,097 | | 15,425 | | 4 | % | 10,127 | | 22,763 | | 25,582 | | (37) | % | |
| Residential mortgage | 16,169 | | 15,829 | | 2 | % | 16,644 | | 16,316 | | 15,253 | | 6 | % | |
| | | | | | | | |
| Home equity | 2,103 | | 2,246 | | (6) | % | 2,486 | | 2,648 | | 2,787 | | (25) | % | |
| Other consumer | 764 | | 753 | | 1 | % | 747 | | 803 | | 877 | | (13) | % | |
| Total consumer | 19,036 | | 18,828 | | 1 | % | 19,876 | | 19,768 | | 18,917 | | 1 | % | |
| Total restructured loans (accruing) | $ | 35,132 | | $ | 34,253 | | 3 | % | $ | 30,003 | | $ | 42,530 | | $ | 44,499 | | (21) | % | |
| Nonaccrual restructured loans (included in nonaccrual loans) | $ | 21,650 | | $ | 22,172 | | (2) | % | $ | 19,352 | | $ | 17,426 | | $ | 15,226 | | 42 | % | |
| Sep 30, 2022 | Jun 30, 2022 | Seql Qtr %
Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change | |
| Accruing Loans 30-89 Days Past Due | | | | | | | | |
| PPP Loans | $ | 252 | | $ | 1,475 | | (83) | % | $ | 1 | | $ | 83 | | $ | 568 | | (56) | % | |
| Commercial and industrial | 1,609 | | 167 | | N/M | 1,085 | | 632 | | 1,229 | | 31 | % | |
| Commercial real estate—owner occupied | — | | — | | N/M | 198 | | 163 | | 30 | | (100) | % | |
| Commercial and business lending | 1,861 | | 1,642 | | 13 | % | 1,284 | | 878 | | 1,827 | | 2 | % | |
| Commercial real estate—investor | — | | 5,484 | | (100) | % | — | | 616 | | 17,021 | | (100) | % | |
| Real estate construction | 43 | | — | | N/M | — | | 1,620 | | — | | N/M | |
| Commercial real estate lending | 43 | | 5,484 | | (99) | % | — | | 2,236 | | 17,021 | | (100) | % | |
| Total commercial | 1,904 | | 7,126 | | (73) | % | 1,284 | | 3,114 | | 18,848 | | (90) | % | |
| Residential mortgage | 6,517 | | 5,315 | | 23 | % | 4,957 | | 6,169 | | 7,095 | | (8) | % | |
| Auto finance | 6,206 | | 2,906 | | 114 | % | 949 | | 11 | | 10 | | N/M | |
| Home equity | 4,234 | | 2,961 | | 43 | % | 4,207 | | 3,711 | | 2,931 | | 44 | % | |
| Other consumer | 1,592 | | 1,365 | | 17 | % | 1,232 | | 2,307 | | 1,272 | | 25 | % | |
| Total consumer | 18,549 | | 12,547 | | 48 | % | 11,345 | | 12,198 | | 11,308 | | 64 | % | |
| Total accruing loans 30-89 days past due | $ | 20,452 | | $ | 19,673 | | 4 | % | $ | 12,629 | | $ | 15,312 | | $ | 30,156 | | (32) | % | |
| | | | | | | | |
| Sep 30, 2022 | Jun 30, 2022 | Seql Qtr %
Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr %
Change | |
| Potential Problem Loans | | | | | | | | |
PPP Loans(b) | $ | 40 | | $ | 47 | | (15) | % | $ | 54 | | $ | 2,000 | | $ | 4,160 | | (99) | % | |
Asset-based lending & equipment finance(a) | 19,266 | | 19,813 | | (3) | % | 19,057 | | 17,697 | | — | | N/M | |
| Commercial and industrial | 89,250 | | 84,785 | | 5 | % | 93,396 | | 120,561 | | 124,990 | | (29) | % | |
| Commercial real estate—owner occupied | 28,287 | | 38,628 | | (27) | % | 24,005 | | 26,723 | | 21,241 | | 33 | % | |
| Commercial and business lending | 136,843 | | 143,273 | | (4) | % | 136,513 | | 166,981 | | 150,391 | | (9) | % | |
| Commercial real estate—investor | 117,982 | | 132,635 | | (11) | % | 130,792 | | 106,138 | | 78,962 | | 49 | % | |
| Real estate construction | — | | 82 | | (100) | % | 200 | | 21,408 | | 19,187 | | (100) | % | |
| Commercial real estate lending | 117,982 | | 132,717 | | (11) | % | 130,992 | | 127,546 | | 98,150 | | 20 | % | |
| Total commercial | 254,825 | | 275,990 | | (8) | % | 267,505 | | 294,527 | | 248,541 | | 3 | % | |
| Residential mortgage | 2,845 | | 3,297 | | (14) | % | 3,032 | | 2,214 | | 2,374 | | 20 | % | |
| | | | | | | | |
| Home equity | 185 | | 188 | | (2) | % | 156 | | 165 | | 171 | | 8 | % | |
| | | | | | | | |
| Total consumer | 3,030 | | 3,486 | | (13) | % | 3,188 | | 2,379 | | 2,546 | | 19 | % | |
| Total potential problem loans | $ | 257,855 | | $ | 279,475 | | (8) | % | $ | 270,693 | | $ | 296,905 | | $ | 251,087 | | 3 | % | |
| | | | | | | | |
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Periods prior to Mar 31, 2022 do not include equipment finance.
(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 |
| | September 30, 2022 | June 30, 2022 | September 30, 2021 |
| ($ 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 | $ | 4,531 | | $ | 261 | | 22.83 | % | $ | 14,026 | | $ | 346 | | 9.91 | % | $ | 275,414 | | $ | 9,633 | | 13.88 | % |
Asset-based lending (ABL) & equipment finance (d) | 317,857 | | 4,027 | | 5.03 | % | 244,369 | | 2,181 | | 3.58 | % | 99,463 | | 766 | | 3.06 | % |
| Commercial and business lending (excl PPP, ABL and equipment finance) | 9,870,075 | | 105,927 | | 4.26 | % | 9,346,218 | | 68,748 | | 2.95 | % | 8,609,196 | | 53,333 | | 2.46 | % |
| Commercial real estate lending | 6,768,054 | | 78,887 | | 4.62 | % | 6,363,395 | | 53,233 | | 3.36 | % | 6,160,241 | | 44,859 | | 2.89 | % |
| Total commercial | 16,960,517 | | 189,101 | | 4.42 | % | 15,968,007 | | 124,509 | | 3.13 | % | 15,144,314 | | 108,591 | | 2.85 | % |
| Residential mortgage | 8,223,531 | | 64,069 | | 3.12 | % | 7,860,220 | | 58,434 | | 2.97 | % | 7,817,737 | | 55,305 | | 2.83 | % |
| Auto finance | 969,918 | | 9,170 | | 3.75 | % | 689,027 | | 6,017 | | 3.50 | % | 7,157 | | 79 | | 4.39 | % |
| Other retail | 901,738 | | 13,868 | | 6.13 | % | 880,910 | | 11,370 | | 5.17 | % | 914,749 | | 11,041 | | 4.81 | % |
| Total loans | 27,055,703 | | 276,209 | | 4.06 | % | 25,398,163 | | 200,331 | | 3.16 | % | 23,883,957 | | 175,016 | | 2.92 | % |
| Investment securities | | | | | | | | | |
| Taxable | 4,344,409 | | 19,221 | | 1.77 | % | 4,448,811 | | 18,317 | | 1.65 | % | 3,258,587 | | 8,745 | | 1.07 | % |
Tax-exempt(a) | 2,435,957 | | 20,838 | | 3.42 | % | 2,427,068 | | 20,637 | | 3.40 | % | 2,029,126 | | 18,412 | | 3.63 | % |
| Other short-term investments | 378,528 | | 3,284 | | 3.45 | % | 352,310 | | 2,420 | | 2.75 | % | 2,215,805 | | 2,281 | | 0.41 | % |
| Investments and other | 7,158,894 | | 43,342 | | 2.42 | % | 7,228,189 | | 41,374 | | 2.29 | % | 7,503,518 | | 29,439 | | 1.57 | % |
| Total earning assets | 34,214,597 | | $ | 319,551 | | 3.72 | % | 32,626,351 | | $ | 241,705 | | 2.97 | % | 31,387,475 | | $ | 204,455 | | 2.59 | % |
| Other assets, net | 3,057,182 | | | | 3,106,232 | | | | 3,372,013 | | | |
| Total assets | $ | 37,271,779 | | | | $ | 35,732,583 | | | | $ | 34,759,489 | | | |
| Liabilities and stockholders' equity | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | |
| Interest-bearing deposits | | | | | | | | | |
| Savings | $ | 4,735,285 | | $ | 516 | | 0.04 | % | $ | 4,682,783 | | $ | 530 | | 0.05 | % | $ | 4,248,493 | | $ | 377 | | 0.04 | % |
| Interest-bearing demand | 6,587,404 | | 10,306 | | 0.62 | % | 6,413,077 | | 2,977 | | 0.19 | % | 6,344,504 | | 1,361 | | 0.09 | % |
| Money market | 7,328,165 | | 9,474 | | 0.51 | % | 6,910,505 | | 2,203 | | 0.13 | % | 7,011,075 | | 1,019 | | 0.06 | % |
| Network transaction deposits | 873,168 | | 4,716 | | 2.14 | % | 775,593 | | 1,480 | | 0.77 | % | 893,991 | | 290 | | 0.13 | % |
| Time deposits | 1,230,859 | | 989 | | 0.32 | % | 1,255,292 | | 829 | | 0.26 | % | 1,434,588 | | 1,379 | | 0.38 | % |
| Total interest-bearing deposits | 20,754,882 | | 26,000 | | 0.50 | % | 20,037,250 | | 8,019 | | 0.16 | % | 19,932,650 | | 4,427 | | 0.09 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 380,674 | | 756 | | 0.79 | % | 454,519 | | 406 | | 0.36 | % | 238,735 | | 48 | | 0.08 | % |
| Commercial Paper | 18,308 | | 1 | | 0.01 | % | 23,154 | | 1 | | 0.01 | % | 55,864 | | 8 | | 0.05 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| FHLB advances | 3,283,328 | | 20,792 | | 2.51 | % | 2,423,771 | | 9,689 | | 1.60 | % | 1,620,790 | | 8,962 | | 2.19 | % |
| Long-term funding | 249,838 | | 2,722 | | 4.36 | % | 249,805 | | 2,730 | | 4.37 | % | 288,236 | | 3,163 | | 4.39 | % |
| Total short and long-term funding | 3,932,149 | | 24,270 | | 2.45 | % | 3,151,249 | | 12,826 | | 1.63 | % | 2,203,625 | | 12,180 | | 2.20 | % |
| Total interest-bearing liabilities | 24,687,031 | | $ | 50,270 | | 0.81 | % | 23,188,499 | | $ | 20,845 | | 0.36 | % | 22,136,276 | | $ | 16,607 | | 0.30 | % |
| Noninterest-bearing demand deposits | 8,119,475 | | | | 8,133,492 | | | | 8,141,723 | | | |
| Other liabilities | 480,672 | | | | 473,478 | | | | 401,077 | | | |
| Stockholders’ equity | 3,984,602 | | | | 3,937,114 | | | | 4,080,413 | | | |
| Total liabilities and stockholders’ equity | $ | 37,271,779 | | | | $ | 35,732,583 | | | | $ | 34,759,489 | | | |
| Interest rate spread | | | 2.91 | % | | | 2.61 | % | | | 2.29 | % |
| Net free funds | | | 0.22 | % | | | 0.10 | % | | | 0.09 | % |
| Fully tax-equivalent net interest income and net interest margin ("NIM") | | $ | 269,281 | | 3.13 | % | | $ | 220,860 | | 2.71 | % | | $ | 187,848 | | 2.38 | % |
| Fully tax-equivalent adjustment | | 4,843 | | | | 4,713 | | | | 4,172 | | |
| Net interest income | | $ | 264,439 | | | | $ | 216,146 | | | | $ | 183,675 | | |
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)Periods prior to March 31, 2022 do not include equipment finance.
| | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year Over Year |
| Nine Months Ended Sep 30, |
| | 2022 | 2021 |
| ($ 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 | $ | 20,633 | | $ | 1,885 | | 12.21 | % | $ | 592,571 | | $ | 28,582 | | 6.45 | % |
Asset-based lending (ABL) & equipment finance (d) | 255,442 | | 7,658 | | 4.01 | % | 119,352 | | 2,732 | | 3.06 | % |
| Commercial and business lending (excl PPP, ABL, and equipment finance) | 9,347,852 | | 227,429 | | 3.25 | % | 8,442,471 | | 159,343 | | 2.52 | % |
| Commercial real estate lending | 6,438,335 | | 176,006 | | 3.65 | % | 6,163,684 | | 133,314 | | 2.89 | % |
| Total commercial | 16,062,262 | | 412,977 | | 3.44 | % | 15,318,077 | | 323,971 | | 2.83 | % |
Residential mortgage | 7,920,382 | | 177,906 | | 2.99 | % | 7,879,992 | | 166,146 | | 2.81 | % |
| Auto finance | 657,150 | | 17,837 | | 3.63 | % | 8,591 | | 284 | | 4.41 | % |
| Other retail | 888,241 | | 35,900 | | 5.40 | % | 939,858 | | 33,664 | | 4.78 | % |
| Total loans | 25,528,036 | | 644,621 | | 3.37 | % | 24,146,518 | | 524,065 | | 2.90 | % |
| Investment securities | | | | | | |
| Taxable | 4,385,580 | | 54,009 | | 1.64 | % | 3,152,994 | | 24,600 | | 1.04 | % |
Tax-exempt (a) | 2,416,064 | | 61,771 | | 3.41 | % | 1,961,528 | | 54,357 | | 3.69 | % |
| Other short-term investments | 625,748 | | 7,696 | | 1.64 | % | 1,662,571 | | 5,802 | | 0.47 | % |
| Investments and other | 7,427,392 | | 123,477 | | 2.22 | % | 6,777,093 | | 84,759 | | 1.67 | % |
| Total earning assets | 32,955,428 | | $ | 768,098 | | 3.11 | % | 30,923,610 | | $ | 608,824 | | 2.63 | % |
| Other assets, net | 3,120,342 | | | | 3,354,657 | | | |
| Total assets | $ | 36,075,770 | | | | $ | 34,278,268 | | | |
| Liabilities and stockholders' equity | | | | | | |
| Interest-bearing liabilities | | | | | | |
| Interest-bearing deposits | | | | | | |
| Savings | $ | 4,650,105 | | $ | 1,427 | | 0.04 | % | $ | 4,061,728 | | $ | 1,066 | | 0.04 | % |
| Interest-bearing demand | 6,573,680 | | 14,307 | | 0.29 | % | 5,981,295 | | 3,596 | | 0.08 | % |
| Money market | 7,090,960 | | 12,642 | | 0.24 | % | 6,956,591 | | 3,101 | | 0.06 | % |
| Network transaction deposits | 795,059 | | 6,460 | | 1.09 | % | 960,308 | | 880 | | 0.12 | % |
| Time deposits | 1,266,116 | | 2,754 | | 0.29 | % | 1,533,466 | | 6,302 | | 0.55 | % |
| Total interest-bearing deposits | 20,375,920 | | 37,590 | | 0.25 | % | 19,493,387 | | 14,945 | | 0.10 | % |
| Federal funds purchased and securities sold under agreements to repurchase | 376,687 | | 1,200 | | 0.43 | % | 177,875 | | 103 | | 0.08 | % |
| Commercial Paper | 23,106 | | 2 | | 0.01 | % | 51,330 | | 21 | | 0.05 | % |
| | | | | | |
| | | | | | |
| FHLB advances | 2,445,486 | | 38,663 | | 2.11 | % | 1,624,320 | | 27,979 | | 2.30 | % |
| Long-term funding | 249,759 | | 8,182 | | 4.37 | % | 461,390 | | 14,323 | | 4.14 | % |
| Total short and long-term funding | 3,095,039 | | 48,047 | | 2.07 | % | 2,314,915 | | 42,425 | | 2.45 | % |
| Total interest-bearing liabilities | 23,470,959 | | $ | 85,637 | | 0.49 | % | 21,808,303 | | $ | 57,371 | | 0.35 | % |
| Noninterest-bearing demand deposits | 8,189,067 | | | | 7,961,119 | | | |
| Other liabilities | 446,249 | | | | 403,925 | | | |
| Stockholders’ equity | 3,969,495 | | | | 4,104,921 | | | |
| Total liabilities and stockholders’ equity | $ | 36,075,770 | | | | $ | 34,278,268 | | | |
| Interest rate spread | | | 2.62 | % | | | 2.28 | % |
| Net free funds | | | 0.14 | % | | | 0.10 | % |
| Fully tax-equivalent net interest income and net interest margin ("NIM") | | $ | 682,461 | | 2.76 | % | | $ | 551,453 | | 2.38 | % |
| Fully tax-equivalent adjustment | | 14,129 | | | | 12,362 | | |
| Net interest income | | $ | 668,332 | | | | $ | 539,092 | | |
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)Periods prior to March 31, 2022 do not include equipment finance.
| | | | | | | | | | | | | | | | | | | | | | | |
Associated Banc-Corp
Loan and Deposit Composition | | | | | | | |
| ($ in thousands) | | | | | | | |
| Period end loan composition | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr % Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr % Change |
| PPP Loans | $ | 1,050 | | $ | 9,514 | | (89) | % | $ | 17,995 | | $ | 66,070 | | $ | 182,121 | | (99) | % |
Asset-based lending & equipment finance(a) | 380,830 | | 263,044 | | 45 | % | 231,040 | | 178,027 | | 111,027 | | N/M |
| Commercial and industrial | 9,190,045 | | 8,984,127 | | 2 | % | 8,102,380 | | 8,208,289 | | 7,816,432 | | 18 | % |
| Commercial real estate—owner occupied | 999,786 | | 928,152 | | 8 | % | 973,572 | | 971,326 | | 879,554 | | 14 | % |
| Commercial and business lending | 10,571,711 | | 10,184,836 | | 4 | % | 9,324,986 | | 9,423,711 | | 8,989,133 | | 18 | % |
| Commercial real estate—investor | 5,064,289 | | 4,790,241 | | 6 | % | 4,469,241 | | 4,384,569 | | 4,296,489 | | 18 | % |
| Real estate construction | 1,835,159 | | 1,775,648 | | 3 | % | 1,760,076 | | 1,808,976 | | 1,834,871 | | — | % |
| Commercial real estate lending | 6,899,449 | | 6,565,889 | | 5 | % | 6,229,317 | | 6,193,545 | | 6,131,360 | | 13 | % |
| Total commercial | 17,471,159 | | 16,750,726 | | 4 | % | 15,554,303 | | 15,617,256 | | 15,120,493 | | 16 | % |
| Residential mortgage | 8,314,902 | | 8,002,943 | | 4 | % | 7,609,343 | | 7,567,310 | | 7,590,895 | | 10 | % |
| Auto finance | 1,117,136 | | 847,969 | | 32 | % | 497,523 | | 143,045 | | 6,739 | | N/M |
| | | | | | | |
| | | | | | | |
| Home equity | 612,608 | | 592,843 | | 3 | % | 580,867 | | 595,615 | | 608,566 | | 1 | % |
| Other consumer | 301,475 | | 300,217 | | — | % | 289,889 | | 301,723 | | 294,979 | | 2 | % |
| Total consumer | 10,346,121 | | 9,743,972 | | 6 | % | 8,977,622 | | 8,607,693 | | 8,501,180 | | 22 | % |
| Total loans | $ | 27,817,280 | | $ | 26,494,698 | | 5 | % | $ | 24,531,926 | | $ | 24,224,949 | | $ | 23,621,673 | | 18 | % |
| | | | | | | |
| | | | | | | |
| Period end deposit and customer funding composition | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr % Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr % Change |
| Noninterest-bearing demand | $ | 8,224,579 | | $ | 8,085,702 | | 2 | % | $ | 8,315,699 | | $ | 8,504,077 | | $ | 8,170,105 | | 1 | % |
| Savings | 4,708,720 | | 4,708,156 | | — | % | 4,661,232 | | 4,410,198 | | 4,278,453 | | 10 | % |
| Interest-bearing demand | 7,122,218 | | 6,789,722 | | 5 | % | 6,616,767 | | 7,019,782 | | 6,407,844 | | 11 | % |
| Money market | 7,909,232 | | 7,769,415 | | 2 | % | 7,522,797 | | 7,185,111 | | 7,583,978 | | 4 | % |
| Time deposits | 1,233,833 | | 1,223,581 | | 1 | % | 1,288,913 | | 1,347,262 | | 1,410,886 | | (13) | % |
| | | | | | | |
| Total deposits | 29,198,581 | | 28,576,577 | | 2 | % | 28,405,409 | | 28,466,430 | | 27,851,266 | | 5 | % |
Customer funding(b) | 283,856 | | 296,440 | | (4) | % | 299,301 | | 354,142 | | 322,081 | | (12) | % |
| Total deposits and customer funding | $ | 29,482,437 | | $ | 28,873,017 | | 2 | % | $ | 28,704,710 | | $ | 28,820,572 | | $ | 28,173,348 | | 5 | % |
Network transaction deposits(c) | $ | 864,086 | | $ | 891,902 | | (3) | % | $ | 762,680 | | $ | 766,965 | | $ | 929,174 | | (7) | % |
| | | | | | | |
| | | | | | | |
| Net deposits and customer funding (Total deposits and customer funding, excluding network transaction deposits) | $ | 28,618,351 | | $ | 27,981,114 | | 2 | % | $ | 27,942,029 | | $ | 28,053,607 | | $ | 27,244,174 | | 5 | % |
| | | | | | | |
| Quarter average loan composition | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr % Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr % Change |
| PPP Loans | $ | 4,531 | | $ | 14,026 | | (68) | % | $ | 43,774 | | $ | 115,074 | | $ | 275,414 | | (98) | % |
Asset-based lending & equipment finance(a) | 317,857 | | 244,369 | | 30 | % | 202,836 | | 125,507 | | 99,463 | | N/M |
| Commercial and industrial | 8,899,582 | | 8,393,415 | | 6 | % | 7,842,179 | | 7,816,260 | | 7,733,148 | | 15 | % |
| Commercial real estate—owner occupied | 970,493 | | 952,802 | | 2 | % | 973,496 | | 899,536 | | 876,047 | | 11 | % |
| Commercial and business lending | 10,192,463 | | 9,604,612 | | 6 | % | 9,062,286 | | 8,956,378 | | 8,984,072 | | 13 | % |
| Commercial real estate—investor | 4,891,530 | | 4,570,300 | | 7 | % | 4,439,051 | | 4,304,579 | | 4,297,783 | | 14 | % |
| Real estate construction | 1,876,524 | | 1,793,095 | | 5 | % | 1,738,011 | | 1,829,470 | | 1,862,458 | | 1 | % |
| Commercial real estate lending | 6,768,054 | | 6,363,395 | | 6 | % | 6,177,062 | | 6,134,049 | | 6,160,241 | | 10 | % |
| Total commercial | 16,960,517 | | 15,968,007 | | 6 | % | 15,239,348 | | 15,090,427 | | 15,144,314 | | 12 | % |
| Residential mortgage | 8,223,531 | | 7,860,220 | | 5 | % | 7,671,329 | | 7,751,337 | | 7,817,737 | | 5 | % |
| Auto finance | 969,918 | | 689,027 | | 41 | % | 305,202 | | 53,120 | | 7,157 | | N/M |
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| Home equity | 601,821 | | 586,072 | | 3 | % | 588,281 | | 600,963 | | 620,601 | | (3) | % |
| Other consumer | 299,917 | | 294,837 | | 2 | % | 293,578 | | 299,406 | | 294,147 | | 2 | % |
| Total consumer | 10,095,186 | | 9,430,156 | | 7 | % | 8,858,390 | | 8,704,826 | | 8,739,643 | | 16 | % |
Total loans(d) | $ | 27,055,703 | | $ | 25,398,163 | | 7 | % | $ | 24,097,738 | | $ | 23,795,253 | | $ | 23,883,957 | | 13 | % |
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| Quarter average deposit composition | Sep 30, 2022 | Jun 30, 2022 | Seql Qtr % Change | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Comp Qtr % Change |
| Noninterest-bearing demand | $ | 8,119,475 | | $ | 8,133,492 | | — | % | $ | 8,316,399 | | $ | 8,416,525 | | $ | 8,141,723 | | — | % |
| Savings | 4,735,285 | | 4,682,783 | | 1 | % | 4,529,991 | | 4,367,233 | | 4,248,493 | | 11 | % |
| Interest-bearing demand | 6,587,404 | | 6,413,077 | | 3 | % | 6,722,038 | | 6,506,438 | | 6,344,504 | | 4 | % |
| Money market | 7,328,165 | | 6,910,505 | | 6 | % | 7,030,945 | | 6,892,803 | | 7,011,075 | | 5 | % |
| Network transaction deposits | 873,168 | | 775,593 | | 13 | % | 734,895 | | 838,255 | | 893,991 | | (2) | % |
| Time deposits | 1,230,859 | | 1,255,292 | | (2) | % | 1,313,101 | | 1,381,092 | | 1,434,588 | | (14) | % |
| Total deposits | $ | 28,874,357 | | $ | 28,170,742 | | 2 | % | $ | 28,647,369 | | $ | 28,402,345 | | $ | 28,074,374 | | 3 | % |
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Periods prior to Mar 31, 2022 do not include equipment finance.
(b) Includes repurchase agreements and commercial paper.
(c) Included above in interest-bearing demand and money market.
(d) 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) | Sep 2022 | Sep 2021 | 3Q22 | 2Q22 | 1Q22 | 4Q21 | 3Q21 |
Selected equity and performance ratios(a)(b)(c) | | | | | | | |
| Tangible common equity / tangible assets | | | 7.06 | % | 7.23 | % | 7.68 | % | 7.86 | % | 7.92 | % |
| Return on average equity | 8.67 | % | 8.93 | % | 9.59 | % | 8.85 | % | 7.55 | % | 7.62 | % | 8.63 | % |
| Return on average tangible common equity | 12.96 | % | 13.56 | % | 14.32 | % | 13.29 | % | 11.26 | % | 11.34 | % | 12.97 | % |
| Return on average common equity Tier 1 | 11.60 | % | 12.62 | % | 12.69 | % | 11.77 | % | 10.27 | % | 10.50 | % | 12.11 | % |
| Return on average tangible assets | 1.00 | % | 1.13 | % | 1.08 | % | 1.03 | % | 0.90 | % | 0.92 | % | 1.07 | % |
| Average stockholders' equity / average assets | 11.00 | % | 11.98 | % | 10.69 | % | 11.02 | % | 11.33 | % | 11.43 | % | 11.74 | % |
Tangible common equity reconciliation(a) | | | | | | | |
| Common equity | | | $ | 3,760 | | $ | 3,766 | | $ | 3,755 | | $ | 3,832 | | $ | 3,802 | |
| Goodwill and other intangible assets, net | | | (1,156) | | (1,159) | | (1,161) | | (1,163) | | (1,165) | |
| Tangible common equity | | | $ | 2,603 | | $ | 2,608 | | $ | 2,594 | | $ | 2,669 | | $ | 2,636 | |
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Tangible assets reconciliation(a) | | | | | | | |
| Total assets | | | $ | 38,050 | | $ | 37,236 | | $ | 34,956 | | $ | 35,104 | | $ | 34,440 | |
| Goodwill and other intangible assets, net | | | (1,156) | | (1,159) | | (1,161) | | (1,163) | | (1,165) | |
| Tangible assets | | | $ | 36,893 | | $ | 36,077 | | $ | 33,795 | | $ | 33,941 | | $ | 33,274 | |
Average tangible common equity and average common equity tier 1 reconciliation(a) | | | | | | | |
| Common equity | $ | 3,776 | | $ | 3,782 | | $ | 3,791 | | $ | 3,744 | | $ | 3,794 | | $ | 3,811 | | $ | 3,807 | |
| Goodwill and other intangible assets, net | (1,160) | | (1,170) | | (1,158) | | (1,160) | | (1,162) | | (1,164) | | (1,167) | |
| Tangible common equity | 2,616 | | 2,612 | | 2,634 | | 2,584 | | 2,631 | | 2,646 | | 2,640 | |
| Modified CECL transitional amount | 67 | | 106 | | 67 | | 67 | | 67 | | 91 | | 97 | |
| Accumulated other comprehensive loss (income) | 147 | | (5) | | 190 | | 170 | | 80 | | 19 | | (5) | |
| Deferred tax assets, net | 36 | | 40 | | 30 | | 39 | | 39 | | 40 | | 40 | |
| Average common equity tier 1 | $ | 2,867 | | $ | 2,754 | | $ | 2,921 | | $ | 2,860 | | $ | 2,818 | | $ | 2,795 | | $ | 2,772 | |
Average tangible assets reconciliation(a) | | | | | | | |
| Total assets | $ | 36,076 | | $ | 34,278 | | $ | 37,272 | | $ | 35,733 | | $ | 35,200 | | $ | 35,016 | | $ | 34,759 | |
| Goodwill and other intangible assets, net | (1,160) | | (1,170) | | (1,158) | | (1,160) | | (1,162) | | (1,164) | | (1,167) | |
| Tangible assets | $ | 34,916 | | $ | 33,108 | | $ | 36,114 | | $ | 34,573 | | $ | 34,038 | | $ | 33,852 | | $ | 33,593 | |
Adjusted net income reconciliation(b) | | | | | | | |
| Net income | $ | 257 | | $ | 274 | | $ | 96 | | $ | 87 | | $ | 74 | | $ | 77 | | $ | 89 | |
| Other intangible amortization, net of tax | 5 | | 5 | | 2 | | 2 | | 2 | | 2 | | 2 | |
| Adjusted net income | $ | 262 | | $ | 279 | | $ | 98 | | $ | 88 | | $ | 76 | | $ | 79 | | $ | 90 | |
Adjusted net income available to common equity reconciliation(b) | | | | | | | |
| Net income available to common equity | $ | 249 | | $ | 260 | | $ | 93 | | $ | 84 | | $ | 71 | | $ | 74 | | $ | 85 | |
| Other intangible amortization, net of tax | 5 | | 5 | | 2 | | 2 | | 2 | | 2 | | 2 | |
| Adjusted net income available to common equity | $ | 254 | | $ | 265 | | $ | 95 | | $ | 86 | | $ | 73 | | $ | 76 | | $ | 86 | |
Selected trend information(d) | | | | | | | |
| Wealth management fees | $ | 64 | | $ | 67 | | $ | 20 | | $ | 21 | | $ | 22 | | $ | 23 | | $ | 22 | |
| Service charges and deposit account fees | 48 | | 47 | | 15 | | 17 | | 17 | | 17 | | 17 | |
| Card-based fees | 33 | | 32 | | 11 | | 11 | | 10 | | 11 | | 11 | |
| Other fee-based revenue | 13 | | 13 | | 4 | | 4 | | 4 | | 4 | | 4 | |
| Fee-based revenue | 158 | | 159 | | 51 | | 54 | | 53 | | 55 | | 54 | |
| Other | 63 | | 92 | | 20 | | 22 | | 22 | | 26 | | 28 | |
| Total noninterest income | $ | 221 | | $ | 251 | | $ | 71 | | $ | 75 | | $ | 74 | | $ | 82 | | $ | 82 | |
Pre-tax pre-provision income(e) | | | | | | | |
| Income before income taxes | $ | 326 | | $ | 344 | | $ | 122 | | $ | 110 | | $ | 93 | | $ | 92 | | $ | 112 | |
| Provision for credit losses | 13 | | (82) | | 17 | | — | | (4) | | (6) | | (24) | |
| Pre-tax pre-provision income | $ | 339 | | $ | 262 | | $ | 139 | | $ | 110 | | $ | 89 | | $ | 86 | | $ | 88 | |
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Efficiency ratio reconciliation(f) | | | | | | | |
| Federal Reserve efficiency ratio | 62.32 | % | 65.98 | % | 60.32 | % | 61.53 | % | 65.71 | % | 67.36 | % | 65.43 | % |
| Fully tax-equivalent adjustment | (0.98) | % | (1.02) | % | (0.87) | % | (0.98) | % | (1.13) | % | (1.10) | % | (1.01) | % |
| Other intangible amortization | (0.75) | % | (0.84) | % | (0.67) | % | (0.76) | % | (0.84) | % | (0.82) | % | (0.83) | % |
| Fully tax-equivalent efficiency ratio | 60.60 | % | 64.13 | % | 58.79 | % | 59.80 | % | 63.76 | % | 65.46 | % | 63.61 | % |
| Provision for unfunded commitments adjustment | — | % | 0.81 | % | (0.90) | % | 0.67 | % | 0.37 | % | 0.55 | % | 1.48 | % |
| Asset gains, net adjustment | 0.13 | % | 0.82 | % | — | % | 0.34 | % | 0.05 | % | 0.24 | % | 1.29 | % |
| Acquisitions, branch sales, and initiatives | (0.20) | % | (0.22) | % | (0.53) | % | — | % | — | % | (1.43) | % | (0.91) | % |
| Adjusted efficiency ratio | 60.53 | % | 65.54 | % | 57.36 | % | 60.82 | % | 64.18 | % | 64.82 | % | 65.46 | % |
Numbers may not sum due to rounding.
(a)Tangible common equity and tangible assets exclude goodwill and other intangible assets, net.
(b)Adjusted net income and adjusted net income available to common equity, which are used in the calculation of return on average tangible assets and return on average tangible common equity, respectively, add back other intangible amortization, net of tax.
(c)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.
(d)These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation’s results of operations.
(e)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.
(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, 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, net, branch sales, and announced initiatives.
