GREEN BAY, Wis., April 17, 2014 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $44 million, or $0.27 per common share, for the quarter ended March 31, 2014.
"We are pleased with our solid results this quarter and remain optimistic about our long-term prospects. This quarter's strong performance was driven by robust loan growth, particularly in our Commercial lines of business." said President and CEO Philip B. Flynn. "In this environment, we remain focused on our strategies to enhance efficiency and manage expenses. We will continue to look for opportunities to deploy capital which are consistent with our commitment of building long-term shareholder value at Associated."
HIGHLIGHTS
- Average loans grew $416 million or 3% from the fourth quarter
- Average total commercial loan balances grew a record $420 million, or 4% from the fourth quarter, and accounted for the majority of this quarter's average loan growth
- Noninterest expenses of $168 million declined $12 million or 6% from the fourth quarter
- Net interest income of $165 million increased $7 million or 5% from the comparable year ago period
- Net interest income, net of interest recoveries, increased $1 million from the fourth quarter
- Pretax income of $66 million increased $4 million or 7% from the fourth quarter
- Credit quality continued to improve with net charge offs, nonaccrual loans, past due loans and potential problem loans all declining quarter over quarter
- During the first quarter, the Company repurchased $39 million, or approximately 2.3 million shares, of common stock at an average cost of $17.20 per share
- Return on Tier 1 common equity was 9.4% for the first quarter
- Capital ratios remain very strong with a Tier 1 common equity ratio of 11.20% at March 31, 2014
FIRST QUARTER 2014 FINANCIAL RESULTS
Loans
Average loans of $16.2 billion increased $416 million, or 3% from the fourth quarter, and have increased $716 million on average or 5%, from the year ago quarter. Record total commercial average loan growth of $420 million from the fourth quarter was attributed to increased line utilization, more origination activity, and fewer loan payoffs. Commercial and business lending average balances grew $249 million, or 4% on a linked-quarter basis. Commercial real estate lending average balances grew by $171 million, or 5% from the fourth quarter. Total average consumer loans were essentially flat compared to the prior quarter as the growth in residential mortgage average balances of $70 million was entirely offset by continued, but slower, run off in home equity and installment loan average balances of $73 million during the quarter.
Deposits
As anticipated, first quarter average deposits of $17.0 billion declined $891 million, or 5% compared to the fourth quarter and have declined $156 million, or 1%, from the year ago quarter. As part of the Company's previously announced funding strategy to reduce collateralized municipal deposits and replace them with lower cost, longer term FHLB borrowings, average money market balances declined $576 million or 7% from the fourth quarter. Seasonal outflows led average checking balances to decline $243 million or 3% from the fourth quarter. Average time deposits continued to decline during the quarter, and have declined $335 million or 17% from the year ago quarter.
Net Interest Income and Net Interest Margin
First quarter net interest income of $165 million was down $2 million from the fourth quarter. However, net interest income, net of interest recoveries, actually increased $1 million from the fourth quarter. In addition, the first quarter had approximately $2 million less interest income due to the day count difference between the quarters.
First quarter net interest margin was 3.12%, a decrease of 11 basis points from the 3.23% reported in the fourth quarter. Asset yields declined 14 basis points from the fourth quarter. The first quarter had $4 million less in interest recoveries compared to the fourth quarter which accounted for approximately 7 basis points of the decline, with the remainder coming from continued loan yield compression. Liability cost management actions reduced total funding costs to 31 basis points, and total interest-bearing deposit costs to 19 basis points, for the first quarter.
Noninterest Income and Expense
Noninterest income for the first quarter was $74 million, down $2 million or 3% from the fourth quarter and down $8 million or 10% from the year ago quarter. The decrease from the year ago quarter was driven by an $11 million decline in net mortgage banking income as refinancing activity has drastically slowed. Mortgage banking income decreased $2 million from the prior quarter related to a decline in the gain on sales of mortgage loans. First quarter asset gains and losses declined $2 million from the prior quarter, primarily related to fourth quarter real estate gains. Core fee-based revenue was relatively flat compared to the prior quarter, as increases in insurance and brokerage commissions were offset by declines in service charges, trust service fees and other non-deposit fees.
Total noninterest expense for the quarter ended March 31, 2014 was $168 million, down $12 million from the fourth quarter. With the decline in expenses, the efficiency ratio improved to 69% for the first quarter. Personnel expense declined $4 million from the fourth quarter as the Company continues to reduce full time equivalent employees. Business development and advertising expenses declined by $3 million from the previous quarter, primarily related to increased brand advertising during the fourth quarter. Legal and professional fees declined $2 million from the prior quarter related to lower consultant expenses.
Taxes
First quarter income taxes of $21 million were up $7 million from the prior quarter reflecting the recognition of a $6 million tax benefit in the fourth quarter related to a settlement of a tax issue and the expiration of various statutes of limitations. The effective tax rate for the first quarter was 31%.
Credit
The Company reported another quarter of improving credit quality with nonaccrual loans down 4%, to $178 million compared to the fourth quarter, and down 21% from a year ago. The ratio of nonaccrual loans to total loans now stands at 1.08%.
Net charge offs of $5 million for the first quarter were flat from the fourth quarter.
The first quarter provision for credit losses was $5 million, compared to $2 million in the fourth quarter. The Company's allowance for loan losses was $268 million, representing an allowance equal to 1.63% of loans and a coverage ratio of 151% of nonaccrual loans at March 31, 2014.
Capital Ratios
The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.20% at March 31, 2014. The Company's capital ratios continue to be well in excess of both current and proposed "well-capitalized" regulatory benchmarks.
FIRST QUARTER 2014 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 17, 2014. Interested parties can listen to the call live on the internet through the investor relations section of the company's website, https://www.associatedbank.com/investor or by dialing 877-445-2557. The slide presentation for the call will be available on the company's website just prior to the call. The number for international callers is 973-935-2959. Participants should ask the operator for the Associated Banc-Corp first quarter 2014 earnings call.
An audio archive of the webcast will be available on the company's website at https://www.associatedbank.com/investor.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NASDAQ: ASBC) has total assets of $25 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe", "expect", "anticipate", "plan", "estimate", "should", "will", "intend", "outlook", or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release contains references to measures which are not defined in generally accepted accounting principles ("GAAP"), including "efficiency ratio," "Tier 1 Common Equity", and "core fee-based revenue." Information concerning these non-GAAP financial measures can be found on page 3 of the attached tables.
Investor Contact:
Brian Klaus, Senior Vice President, Director of Investor Relations
920-491-7059
Media Contact:
Cliff Bowers, Senior Vice President, Director of Public Relations
920-491-7542
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Associated Banc-Corp |
Consolidated Balance Sheets (Unaudited) |
| March 31, | December 31, | Seql Qtr | September 30, | June 30, | March 31, | Comp Qtr |
(in thousands) | 2014 | 2013 | $ Change | 2013 | 2013 | 2013 | $ Change |
Assets |
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Cash and due from banks | $ 526,951 | $ 455,482 | $ 71,469 | $ 526,009 | $ 422,779 | $ 336,247 | $ 190,704 |
Interest-bearing deposits in other |
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financial institutions | 92,071 | 126,018 | (33,947) | 277,761 | 121,390 | 82,555 | 9,516 |
Federal funds sold and securities purchased |
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under agreements to resell | 4,400 | 20,745 | (16,345) | 25,400 | 10,800 | 8,600 | (4,200) |
Securities held to maturity, at amortized cost | 193,759 | 175,210 | 18,549 | 125,095 | 75,946 | 54,123 | 139,636 |
Securities available for sale, at fair value | 5,277,908 | 5,250,585 | 27,323 | 4,840,035 | 4,854,319 | 4,950,317 | 327,591 |
Federal Home Loan Bank and Federal |
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Reserve Bank stocks, at cost | 181,360 | 181,249 | 111 | 181,129 | 181,008 | 152,490 | 28,870 |
Loans held for sale | 46,529 | 64,738 | (18,209) | 102,052 | 203,576 | 173,389 | (126,860) |
Loans | 16,441,444 | 15,896,261 | 545,183 | 15,585,854 | 15,746,599 | 15,551,562 | 889,882 |
Allowance for loan losses | (267,916) | (268,315) | 399 | (271,724) | (277,218) | (286,923) | 19,007 |
Loans, net | 16,173,528 | 15,627,946 | 545,582 | 15,314,130 | 15,469,381 | 15,264,639 | 908,889 |
Premises and equipment, net | 269,257 | 270,890 | (1,633) | 265,636 | 258,903 | 254,674 | 14,583 |
Goodwill | 929,168 | 929,168 | - | 929,168 | 929,168 | 929,168 | - |
Other intangible assets, net | 72,629 | 74,464 | (1,835) | 75,730 | 74,612 | 66,294 | 6,335 |
Trading assets | 40,822 | 43,728 | (2,906) | 49,402 | 49,732 | 65,014 | (24,192) |
Other assets | 997,815 | 1,006,697 | (8,882) | 977,128 | 965,330 | 940,258 | 57,557 |
Total assets | $ 24,806,197 | $ 24,226,920 | $ 579,277 | $ 23,688,675 | $ 23,616,944 | $ 23,277,768 | $ 1,528,429 |
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Liabilities and Stockholders' Equity |
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Noninterest-bearing demand deposits | $ 4,478,981 | $ 4,626,312 | $ (147,331) | $ 4,453,663 | $ 4,259,776 | $ 4,453,109 | $ 25,872 |
Interest-bearing deposits | 13,030,946 | 12,640,855 | 390,091 | 13,884,245 | 12,872,660 | 12,968,185 | 62,761 |
Total deposits | 17,509,927 | 17,267,167 | 242,760 | 18,337,908 | 17,132,436 | 17,421,294 | 88,633 |
Federal funds purchased and securities sold |
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under agreements to repurchase | 939,254 | 475,442 | 463,812 | 580,479 | 545,740 | 730,855 | 208,399 |
Other short-term funding | 308,652 | 265,484 | 43,168 | 1,046,401 | 2,218,760 | 1,038,697 | (730,045) |
Long-term funding | 2,932,040 | 3,087,267 | (155,227) | 614,568 | 614,822 | 915,063 | 2,016,977 |
Trading liabilities | 43,450 | 46,470 | (3,020) | 52,430 | 52,598 | 70,236 | (26,786) |
Accrued expenses and other liabilities | 171,850 | 193,800 | (21,950) | 184,607 | 175,612 | 165,358 | 6,492 |
Total liabilities | 21,905,173 | 21,335,630 | 569,543 | 20,816,393 | 20,739,968 | 20,341,503 | 1,563,670 |
Stockholders' Equity |
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Preferred equity | 61,158 | 61,862 | (704) | 62,737 | 63,272 | 63,272 | (2,114) |
Common stock | 1,750 | 1,750 | - | 1,750 | 1,750 | 1,750 | - |
Surplus | 1,623,323 | 1,617,990 | 5,333 | 1,614,516 | 1,610,243 | 1,605,966 | 17,357 |
Retained earnings | 1,402,549 | 1,392,508 | 10,041 | 1,361,498 | 1,330,737 | 1,297,692 | 104,857 |
Accumulated other comprehensive |
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income (loss) | (11,577) | (24,244) | 12,667 | (37,120) | (25,015) | 42,991 | (54,568) |
Treasury stock | (176,179) | (158,576) | (17,603) | (131,099) | (104,011) | (75,406) | (100,773) |
Total stockholders' equity | 2,901,024 | 2,891,290 | 9,734 | 2,872,282 | 2,876,976 | 2,936,265 | (35,241) |
Total liabilities and stockholders' equity | $ 24,806,197 | $ 24,226,920 | $ 579,277 | $ 23,688,675 | $ 23,616,944 | $ 23,277,768 | $ 1,528,429 |
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Associated Banc-Corp |
Consolidated Statements of Income (Unaudited) - Quarterly Trend |
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(in thousands, except per share amounts) | 1Q14 | 4Q13 | $ Change | % Change | 3Q13 | 2Q13 | 1Q13 | $ Change | % Change |
Interest Income |
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Interest and fees on loans | $ 143,387 | $ 148,884 | $ (5,497) | (3.7%) | $ 146,219 | $ 146,896 | $ 145,527 | $ (2,140) | (1.5%) |
Interest and dividends on investment securities: |
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Taxable | 26,257 | 24,316 | 1,941 | 8.0% | 21,544 | 21,446 | 21,613 | 4,644 | 21.5% |
Tax-exempt | 6,971 | 6,884 | 87 | 1.3% | 6,711 | 6,785 | 6,965 | 6 | 0.1% |
Other interest | 1,449 | 1,453 | (4) | (0.3%) | 1,260 | 1,233 | 1,247 | 202 | 16.2% |
Total interest income | 178,064 | 181,537 | (3,473) | (1.9%) | 175,734 | 176,360 | 175,352 | 2,712 | 1.5% |
Interest Expense |
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Interest on deposits | 6,159 | 7,340 | (1,181) | (16.1%) | 7,617 | 7,769 | 8,541 | (2,382) | (27.9%) |
Interest on Federal funds purchased and |
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securities sold under agreements to repurchase | 305 | 271 | 34 | 12.5% | 308 | 333 | 410 | (105) | (25.6%) |
Interest on other short-term funding | 116 | 228 | (112) | (49.1%) | 434 | 525 | 332 | (216) | (65.1%) |
Interest on long-term funding | 6,511 | 6,499 | 12 | 0.2% | 6,866 | 7,551 | 8,416 | (1,905) | (22.6%) |
Total interest expense | 13,091 | 14,338 | (1,247) | (8.7%) | 15,225 | 16,178 | 17,699 | (4,608) | (26.0%) |
Net Interest Income | 164,973 | 167,199 | (2,226) | (1.3%) | 160,509 | 160,182 | 157,653 | 7,320 | 4.6% |
Provision for credit losses | 5,000 | 2,300 | 2,700 | 117.4% | (800) | 5,300 | 3,300 | 1,700 | 51.5% |
Net interest income after provision for |
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credit losses | 159,973 | 164,899 | (4,926) | (3.0%) | 161,309 | 154,882 | 154,353 | 5,620 | 3.6% |
Noninterest Income |
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Trust service fees | 11,711 | 11,938 | (227) | (1.9%) | 11,380 | 11,405 | 10,910 | 801 | 7.3% |
Service charges on deposit accounts | 16,400 | 17,330 | (930) | (5.4%) | 18,407 | 17,443 | 16,829 | (429) | (2.5%) |
Card-based and other nondeposit fees | 12,509 | 12,684 | (175) | (1.4%) | 12,688 | 12,591 | 11,950 | 559 | 4.7% |
Insurance commissions | 12,317 | 11,274 | 1,043 | 9.3% | 11,356 | 9,631 | 11,763 | 554 | 4.7% |
Brokerage and annuity commissions | 4,033 | 3,881 | 152 | 3.9% | 3,792 | 3,688 | 3,516 | 517 | 14.7% |
Total core fee-based revenue | 56,970 | 57,107 | (137) | (0.2%) | 57,623 | 54,758 | 54,968 | 2,002 | 3.6% |
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Mortgage banking, net | 6,361 | 8,277 | (1,916) | (23.1%) | 3,542 | 19,263 | 17,765 | (11,404) | (64.2%) |
Capital market fees, net | 2,322 | 2,771 | (449) | (16.2%) | 2,652 | 5,074 | 2,583 | (261) | (10.1%) |
Bank owned life insurance income | 4,320 | 2,787 | 1,533 | 55.0% | 2,817 | 3,281 | 2,970 | 1,350 | 45.5% |
Asset gains (losses), net | 728 | 2,687 | (1,959) | (72.9%) | 1,934 | (44) | 836 | (108) | (12.9%) |
Investment securities gains (losses), net | 378 | (18) | 396 | N/M | 248 | 34 | 300 | 78 | 26.0% |
Other | 2,442 | 2,262 | 180 | 8.0% | 2,100 | 1,944 | 2,578 | (136) | (5.3%) |
Total noninterest income | 73,521 | 75,873 | (2,352) | (3.1%) | 70,916 | 84,310 | 82,000 | (8,479) | (10.3%) |
Noninterest Expense |
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Personnel expense | 97,698 | 101,215 | (3,517) | (3.5%) | 98,102 | 99,791 | 97,907 | (209) | (0.2%) |
Occupancy | 15,560 | 14,684 | 876 | 6.0% | 14,758 | 14,305 | 15,662 | (102) | (0.7%) |
Equipment | 6,276 | 6,509 | (233) | (3.6%) | 6,213 | 6,462 | 6,167 | 109 | 1.8% |
Technology | 12,724 | 12,963 | (239) | (1.8%) | 12,323 | 12,651 | 11,508 | 1,216 | 10.6% |
Business development and advertising | 5,062 | 7,834 | (2,772) | (35.4%) | 5,947 | 5,028 | 4,537 | 525 | 11.6% |
Other intangible amortization | 991 | 1,011 | (20) | (2.0%) | 1,010 | 1,011 | 1,011 | (20) | (2.0%) |
Loan expense | 2,787 | 3,677 | (890) | (24.2%) | 3,157 | 3,044 | 3,284 | (497) | (15.1%) |
Legal and professional fees | 4,188 | 5,916 | (1,728) | (29.2%) | 3,482 | 5,483 | 5,345 | (1,157) | (21.6%) |
Losses other than loans | 544 | 1,559 | (1,015) | (65.1%) | (600) | 499 | 384 | 160 | 41.7% |
Foreclosure/OREO expense | 1,896 | 2,829 | (933) | (33.0%) | 2,515 | 2,302 | 2,422 | (526) | (21.7%) |
FDIC expense | 5,001 | 4,879 | 122 | 2.5% | 4,755 | 4,395 | 5,432 | (431) | (7.9%) |
Other | 14,931 | 16,091 | (1,160) | (7.2%) | 13,509 | 13,725 | 13,956 | 975 | 7.0% |
Total noninterest expense | 167,658 | 179,167 | (11,509) | (6.4%) | 165,171 | 168,696 | 167,615 | 43 | 0.0% |
Income before income taxes | 65,836 | 61,605 | 4,231 | 6.9% | 67,054 | 70,496 | 68,738 | (2,902) | (4.2%) |
Income tax expense | 20,637 | 13,847 | 6,790 | 49.0% | 21,396 | 22,608 | 21,350 | (713) | (3.3%) |
Net income | 45,199 | 47,758 | (2,559) | (5.4%) | 45,658 | 47,888 | 47,388 | (2,189) | (4.6%) |
Preferred stock dividends | 1,244 | 1,273 | (29) | (2.3%) | 1,285 | 1,300 | 1,300 | (56) | (4.3%) |
Net income available to common equity | $ 43,955 | $ 46,485 | $ (2,530) | (5.4%) | $ 44,373 | $ 46,588 | $ 46,088 | $ (2,133) | (4.6%) |
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Earnings Per Common Share: |
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Basic | $ 0.27 | $ 0.28 | $ (0.01) | (3.6%) | $ 0.27 | $ 0.28 | $ 0.27 | $ - | 0.0% |
Diluted | $ 0.27 | $ 0.28 | $ (0.01) | (3.6%) | $ 0.27 | $ 0.28 | $ 0.27 | $ - | 0.0% |
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Average Common Shares Outstanding: |
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Basic | 161,467 | 162,611 | (1,144) | (0.7%) | 164,954 | 166,605 | 168,234 | (6,767) | (4.0%) |
Diluted | 162,188 | 163,235 | (1,047) | (0.6%) | 165,443 | 166,748 | 168,404 | (6,216) | (3.7%) |
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Associated Banc-Corp |
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Selected Quarterly Information |
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(in thousands, except per share, full time equivalent employee data and otherwise noted) | 1st Qtr 2014 | 4th Qtr 2013 | 3rd Qtr 2013 | 2nd Qtr 2013 | 1st Qtr 2013 |
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Per Common Share Data |
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Dividends | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 |
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Market Value: |
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High | 18.35 | 17.56 | 17.60 | 15.69 | 15.30 |
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Low | 15.58 | 15.34 | 15.29 | 13.81 | 13.46 |
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Close | 18.06 | 17.40 | 15.49 | 15.55 | 15.19 |
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Book value | 17.64 | 17.40 | 17.10 | 16.97 | 17.13 |
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Tier 1 common equity / share | 11.88 | 11.77 | 11.59 | 11.42 | 11.22 |
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Tangible book value / share | $ 11.80 | $ 11.62 | $ 11.37 | $ 11.28 | $ 11.51 |
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Performance Ratios (annualized) |
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Return on average assets | 0.76% | 0.80% | 0.78% | 0.82% | 0.83% |
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Return on average tangible common equity | 9.45 | 9.87 | 9.48 | 9.76 | 9.81 |
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Return on average Tier 1 common equity (1) | 9.38 | 9.78 | 9.31 | 9.94 | 10.07 |
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Effective tax rate | 31.35 | 22.48 | 31.91 | 32.07 | 31.06 |
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Dividend payout ratio (3) | 33.33 | 32.14 | 29.63 | 28.57 | 29.63 |
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Average Balances |
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Common stockholders' equity | $ 2,826,933 | $ 2,810,130 | $ 2,799,885 | $ 2,857,722 | $ 2,850,227 |
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Average Tier 1 common equity (1) | $ 1,899,535 | $ 1,885,377 | $ 1,890,398 | $ 1,880,826 | $ 1,856,431 |
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Selected Trend Information |
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Average full time equivalent employees | 4,517 | 4,584 | 4,699 | 4,790 | 4,841 |
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Trust assets under management, at market value ($ in millions) | $ 7,535 | $ 7,424 | $ 7,078 | $ 6,894 | $ 6,913 |
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Total revenue (4) | $ 243,150 | $ 248,110 | $ 236,373 | $ 249,488 | $ 244,743 |
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Core fee-based revenue (5) | $ 56,970 | $ 57,107 | $ 57,623 | $ 54,758 | $ 54,968 |
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Mortgage loans originated for sale during period | $ 203,764 | $ 326,648 | $ 513,549 | $ 782,398 | $ 681,410 |
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Mortgage portfolio serviced for others ($ in millions) | $ 8,084 | $ 8,084 | $ 8,014 | $ 7,794 | $ 7,585 |
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Mortgage servicing rights, net / Portfolio serviced for others | 0.77% | 0.78% | 0.79% | 0.79% | 0.69% |
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At Period End |
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Loans / deposits | 93.90% | 92.06% | 84.99% | 91.91% | 89.27% |
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Risk weighted assets ($ in millions) (6) (7) | $ 17,075 | $ 16,694 | $ 16,359 | $ 16,479 | $ 16,163 |
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Tier 1 common equity (1) | $ 1,912,083 | $ 1,913,320 | $ 1,904,060 | $ 1,893,875 | $ 1,881,410 |
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Stockholders' equity / assets | 11.69% | 11.93% | 12.13% | 12.18% | 12.61% |
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Tangible common equity / tangible assets (8) | 7.96% | 8.11% | 8.21% | 8.25% | 8.64% |
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Tangible equity / tangible assets (8) | 8.22% | 8.38% | 8.49% | 8.53% | 8.92% |
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Tier 1 common equity / risk-weighted assets (6) (7) | 11.20% | 11.46% | 11.64% | 11.49% | 11.64% |
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Tier 1 leverage ratio (6) (7) | 8.46% | 8.70% | 8.76% | 8.73% | 8.78% |
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Tier 1 risk-based capital ratio (6) (7) | 11.56% | 11.83% | 12.02% | 11.88% | 12.03% |
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Total risk-based capital ratio (6) (7) | 12.81% | 13.09% | 13.44% | 13.29% | 13.45% |
|
Shares outstanding, end of period | 161,012 | 162,623 | 164,303 | 165,837 | 167,673 |
|
Non-GAAP Financial Measures Reconciliation |
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Efficiency ratio (2) | 70.41% | 73.70% | 71.45% | 69.01% | 70.03% |
|
Taxable equivalent adjustment | (1.35) | (1.49) | (1.50) | (1.38) | (1.46) |
|
Asset gains (losses), net | 0.22 | 0.80 | 0.59 | (0.01) | 0.24 |
|
Other intangible amortization | (0.42) | (0.42) | (0.44) | (0.41) | (0.42) |
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Efficiency ratio, fully taxable equivalent (2) | 68.86% | 72.59% | 70.10% | 67.21% | 68.39% |
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(1) Tier 1 common equity, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of our capital with the capital of other financial services companies. Management uses Tier 1 common equity, along with other capital measures, to assess and monitor our capital position. Tier 1 common equity (period end and average) is Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities. |
(2) Efficiency ratio is defined by the Federal Reserve guidance as noninterest expense divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and asset gains / losses, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and investment securities. Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net). |
(3) Ratio is based upon basic earnings per common share. |
(4) Total revenue, a non-GAAP financial measure, is the sum of taxable equivalent net interest income, core fee-based revenues, and other noninterest income categories, as presented on Page 2 in the Consolidated Statements of Income and Page 6 in the Net Interest Income Analysis. |
(5) Core fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions, as presented on Page 2 in the Consolidated Statements of Income. |
(6) March 31, 2014 data is estimated. |
(7) The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes similar capital adequacy requirements and standards for the Bank. Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital. The sum of Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital. Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets consist of total assets plus certain off-balance sheet and market items, subject to adjustment for predefined credit risk factors. |
(8) Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. |
Associated Banc-Corp |
Selected Asset Quality Information |
|
| Mar14 vs Dec13 |
|
|
|
| Mar14 vs Mar13 |
(in thousands) | Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Allowance for Loan Losses |
|
|
|
|
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|
|
|
Beginning balance | $ 268,315 | $ 271,724 | (1.3%) |
| $ 277,218 | $ 286,923 | $ 297,409 | (9.8%) |
Provision for loan losses | 5,000 | 2,000 | 150.0% |
| - | 4,000 | 4,000 | 25.0% |
Charge offs | (11,361) | (18,742) | (39.4%) |
| (20,288) | (21,904) | (27,128) | (58.1%) |
Recoveries | 5,962 | 13,333 | (55.3%) |
| 14,794 | 8,199 | 12,642 | (52.8%) |
Net charge offs | (5,399) | (5,409) | (0.2%) |
| (5,494) | (13,705) | (14,486) | (62.7%) |
Ending balance | $ 267,916 | $ 268,315 | (0.1%) |
| $ 271,724 | $ 277,218 | $ 286,923 | (6.6%) |
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Allowance for Unfunded Commitments |
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Beginning balance | $ 21,900 | $ 21,600 | 1.4% |
| $ 22,400 | $ 21,100 | $ 21,800 | 0.5% |
Provision for unfunded commitments | - | 300 | N/M |
| (800) | 1,300 | (700) | N/M |
Ending balance | $ 21,900 | $ 21,900 | 0.0% |
| $ 21,600 | $ 22,400 | $ 21,100 | 3.8% |
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Allowance for credit losses | $ 289,816 | $ 290,215 | (0.1%) |
| $ 293,324 | $ 299,618 | $ 308,023 | (5.9%) |
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Net Charge Offs |
|
| Mar14 vs Dec13 |
|
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|
| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Commercial and industrial | $ 2,725 | $ 4,555 | (40.2%) |
| $ (447) | $ 1,477 | $ 696 | 291.5% |
Commercial real estate - owner occupied | (124) | 967 | (112.8%) |
| 2,076 | 1,574 | 1,518 | (108.2%) |
Lease financing | - | (16) | N/M |
| - | 16 | (12) | N/M |
Commercial and business lending | 2,601 | 5,506 | (52.8%) |
| 1,629 | 3,067 | 2,202 | 18.1% |
Commercial real estate - investor | (1,031) | 137 | N/M |
| (414) | 2,999 | 163 | N/M |
Real estate construction | 113 | (3,130) | (103.6%) |
| (303) | (95) | 1,392 | (91.9%) |
Commercial real estate lending | (918) | (2,993) | (69.3%) |
| (717) | 2,904 | 1,555 | (159.0%) |
Total commercial | 1,683 | 2,513 | (33.0%) |
| 912 | 5,971 | 3,757 | (55.2%) |
Home equity revolving lines of credit | 1,182 | 966 | 22.4% |
| 767 | 2,512 | 3,615 | (67.3%) |
Home equity loans 1st liens | 406 | 372 | 9.1% |
| 564 | 954 | 765 | (46.9%) |
Home equity loans junior liens | 859 | 1,111 | (22.7%) |
| 800 | 2,034 | 1,957 | (56.1%) |
Home equity | 2,447 | 2,449 | (0.1%) |
| 2,131 | 5,500 | 6,337 | (61.4%) |
Installment | 113 | (611) | (118.5%) |
| 124 | 66 | 177 | (36.2%) |
Residential mortgage | 1,156 | 1,058 | 9.3% |
| 2,327 | 2,168 | 4,215 | (72.6%) |
Total consumer | 3,716 | 2,896 | 28.3% |
| 4,582 | 7,734 | 10,729 | (65.4%) |
Total net charge offs | $ 5,399 | $ 5,409 | (0.2%) |
| $ 5,494 | $ 13,705 | $ 14,486 | (62.7%) |
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Net Charge Offs to Average Loans (in basis points) * | Mar 31, 2014 | Dec 31, 2013 |
|
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 |
|
Commercial and industrial | 22 | 38 |
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| (4) | 13 | 6 |
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Commercial real estate - owner occupied | (5) | 34 |
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| 72 | 54 | 51 |
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Lease financing | - | (12) |
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| - | 12 | (8) |
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Commercial and business lending | 17 | 37 |
|
| 11 | 21 | 16 |
|
Commercial real estate - investor | (14) | 2 |
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| (6) | 41 | 2 |
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Real estate construction | 5 | (145) |
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| (15) | (5) | 82 |
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Commercial real estate lending | (10) | (32) |
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| (8) | 31 | 18 |
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Total commercial | 7 | 10 |
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| 4 | 25 | 17 |
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Home equity revolving lines of credit | 55 | 44 |
|
| 34 | 112 | 159 |
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Home equity loans 1st liens | 23 | 19 |
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| 27 | 42 | 32 |
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Home equity loans junior liens | 171 | 205 |
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| 140 | 336 | 303 |
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Home equity | 55 | 52 |
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| 44 | 108 | 119 |
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Installment | 11 | (59) |
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| 11 | 6 | 16 |
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Residential mortgage | 12 | 11 |
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| 25 | 24 | 47 |
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Total consumer | 25 | 19 |
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| 30 | 50 | 70 |
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Total net charge offs | 14 | 14 |
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| 14 | 35 | 38 |
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Credit Quality |
|
| Mar14 vs Dec13 |
|
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|
| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Nonaccrual loans | $ 177,978 | $ 185,428 | (4.0%) |
| $ 207,594 | $ 217,493 | $ 225,436 | (21.1%) |
Other real estate owned (OREO) | 19,173 | 18,118 | 5.8% |
| 25,077 | 27,407 | 35,156 | (45.5%) |
Total nonperforming assets | $ 197,151 | $ 203,546 | (3.1%) |
| $ 232,671 | $ 244,900 | $ 260,592 | (24.3%) |
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Loans 90 or more days past due and still accruing | $ 723 | $ 2,350 | (69.2%) |
| $ 2,063 | $ 1,548 | $ 5,690 | (87.3%) |
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Allowance for loan losses / loans | 1.63% | 1.69% |
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| 1.74% | 1.76% | 1.84% |
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Allowance for loan losses / nonaccrual loans | 150.53 | 144.70 |
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| 130.89 | 127.46 | 127.27 |
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Nonaccrual loans / total loans | 1.08 | 1.17 |
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| 1.33 | 1.38 | 1.45 |
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Nonperforming assets / total loans plus OREO | 1.20 | 1.28 |
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| 1.49 | 1.55 | 1.67 |
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Nonperforming assets / total assets | 0.79 | 0.84 |
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| 0.98 | 1.04 | 1.12 |
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Net charge offs / average loans (annualized) | 0.14 | 0.14 |
|
| 0.14 | 0.35 | 0.38 |
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Year-to-date net charge offs / average loans | 0.14 | 0.25 |
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| 0.29 | 0.36 | 0.38 |
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Nonaccrual loans by type: |
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Commercial and industrial | $ 38,488 | $ 37,719 | 2.0% |
| $ 36,105 | $ 30,302 | $ 33,242 | 15.8% |
Commercial real estate - owner occupied | 26,735 | 29,664 | (9.9%) |
| 28,301 | 24,003 | 23,199 | 15.2% |
Lease financing | 172 | 69 | 149.3% |
| 99 | 72 | 2,165 | (92.1%) |
Commercial and business lending | 65,395 | 67,452 | (3.0%) |
| 64,505 | 54,377 | 58,606 | 11.6% |
Commercial real estate - investor | 33,611 | 37,596 | (10.6%) |
| 49,841 | 60,780 | 56,776 | (40.8%) |
Real estate construction | 6,667 | 6,467 | 3.1% |
| 18,670 | 21,419 | 22,166 | (69.9%) |
Commercial real estate lending | 40,278 | 44,063 | (8.6%) |
| 68,511 | 82,199 | 78,942 | (49.0%) |
Total commercial | 105,673 | 111,515 | (5.2%) |
| 133,016 | 136,576 | 137,548 | (23.2%) |
Home equity revolving lines of credit | 10,356 | 11,883 | (12.9%) |
| 11,991 | 12,940 | 15,914 | (34.9%) |
Home equity loans 1st liens | 5,341 | 6,135 | (12.9%) |
| 6,131 | 7,898 | 8,626 | (38.1%) |
Home equity loans junior liens | 6,788 | 7,149 | (5.0%) |
| 7,321 | 7,296 | 9,405 | (27.8%) |
Home equity | 22,485 | 25,167 | (10.7%) |
| 25,443 | 28,134 | 33,945 | (33.8%) |
Installment | 915 | 1,114 | (17.9%) |
| 1,269 | 1,533 | 1,762 | (48.1%) |
Residential mortgage | 48,905 | 47,632 | 2.7% |
| 47,866 | 51,250 | 52,181 | (6.3%) |
Total consumer | 72,305 | 73,913 | (2.2%) |
| 74,578 | 80,917 | 87,888 | (17.7%) |
Total nonaccrual loans | $ 177,978 | $ 185,428 | (4.0%) |
| $ 207,594 | $ 217,493 | $ 225,436 | (21.1%) |
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* Annualized. |
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N/M = Not meaningful. |
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Associated Banc-Corp |
Selected Asset Quality Information (continued) |
|
| Mar14 vs Dec13 |
|
|
|
| Mar14 vs Mar13 |
(in thousands) | Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Restructured loans (accruing) |
|
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Commercial and industrial | $ 27,776 | $ 32,517 | (14.6%) |
| $ 32,145 | $ 30,970 | $ 29,251 | (5.0%) |
Commercial real estate - owner occupied | 11,579 | 13,009 | (11.0%) |
| 14,425 | 14,336 | 12,888 | (10.2%) |
Commercial and business lending | 39,355 | 45,526 | (13.6%) |
| 46,570 | 45,306 | 42,139 | (6.6%) |
Commercial real estate - investor | 46,020 | 44,946 | 2.4% |
| 35,073 | 37,299 | 41,253 | 11.6% |
Real estate construction | 2,954 | 3,793 | (22.1%) |
| 4,825 | 5,365 | 5,540 | (46.7%) |
Commercial real estate lending | 48,974 | 48,739 | 0.5% |
| 39,898 | 42,664 | 46,793 | 4.7% |
Total commercial | 88,329 | 94,265 | (6.3%) |
| 86,468 | 87,970 | 88,932 | (0.7%) |
Home equity revolving lines of credit | 1,178 | 1,117 | 5.5% |
| 1,118 | 1,130 | 880 | 33.9% |
Home equity loans 1st liens | 1,656 | 1,436 | 15.3% |
| 1,628 | 1,684 | 1,783 | (7.1%) |
Home equity loans junior liens | 6,738 | 7,080 | (4.8%) |
| 7,113 | 7,119 | 6,893 | (2.2%) |
Home equity | 9,572 | 9,633 | (0.6%) |
| 9,859 | 9,933 | 9,556 | 0.2% |
Installment | 225 | 246 | (8.5%) |
| 416 | 570 | 664 | (66.1%) |
Residential mortgage | 18,798 | 19,841 | (5.3%) |
| 20,300 | 20,593 | 20,941 | (10.2%) |
Total consumer | 28,595 | 29,720 | (3.8%) |
| 30,575 | 31,096 | 31,161 | (8.2%) |
Total restructured loans (accruing) | $ 116,924 | $ 123,985 | (5.7%) |
| $ 117,043 | $ 119,066 | $ 120,093 | (2.6%) |
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Restructured loans in nonaccrual loans (not included above) | $ 74,231 | $ 59,585 | 24.6% |
| $ 69,311 | $ 70,354 | $ 67,811 | 9.5% |
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Loans Past Due 30-89 Days |
|
| Mar14 vs Dec13 |
|
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|
| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Commercial and industrial | $ 4,126 | $ 6,826 | (39.6%) |
| $ 6,518 | $ 8,516 | $ 10,263 | (59.8%) |
Commercial real estate - owner occupied | 5,342 | 3,106 | 72.0% |
| 8,505 | 8,105 | 6,804 | (21.5%) |
Lease financing | 567 | - | N/M |
| 1,000 | 57 | 283 | 100.4% |
Commercial and business lending | 10,035 | 9,932 | 1.0% |
| 16,023 | 16,678 | 17,350 | (42.2%) |
Commercial real estate - investor | 7,188 | 23,215 | (69.0%) |
| 21,747 | 18,269 | 25,201 | (71.5%) |
Real estate construction | 679 | 1,954 | (65.3%) |
| 820 | 797 | 2,287 | (70.3%) |
Commercial real estate lending | 7,867 | 25,169 | (68.7%) |
| 22,567 | 19,066 | 27,488 | (71.4%) |
Total commercial | 17,902 | 35,101 | (49.0%) |
| 38,590 | 35,744 | 44,838 | (60.1%) |
Home equity revolving lines of credit | 5,344 | 6,728 | (20.6%) |
| 6,318 | 7,739 | 1,832 | 191.7% |
Home equity loans 1st liens | 1,469 | 1,110 | 32.3% |
| 1,376 | 1,857 | 1,869 | (21.4%) |
Home equity loans junior liens | 3,006 | 2,842 | 5.8% |
| 2,206 | 2,709 | 2,848 | 5.5% |
Home equity | 9,819 | 10,680 | (8.1%) |
| 9,900 | 12,305 | 6,549 | 49.9% |
Installment | 1,269 | 1,150 | 10.3% |
| 1,170 | 1,434 | 2,500 | (49.2%) |
Residential mortgage | 4,498 | 6,118 | (26.5%) |
| 6,722 | 9,920 | 8,793 | (48.8%) |
Total consumer | 15,586 | 17,948 | (13.2%) |
| 17,792 | 23,659 | 17,842 | (12.6%) |
Total loans past due 30-89 days | $ 33,488 | $ 53,049 | (36.9%) |
| $ 56,382 | $ 59,403 | $ 62,680 | (46.6%) |
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Potential Problem Loans |
|
| Mar14 vs Dec13 |
|
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|
| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Commercial and industrial | $ 109,027 | $ 113,669 | (4.1%) |
| $ 112,947 | $ 127,382 | $ 127,367 | (14.4%) |
Commercial real estate - owner occupied | 64,785 | 56,789 | 14.1% |
| 61,256 | 75,074 | 93,098 | (30.4%) |
Lease financing | 3,065 | 1,784 | 71.8% |
| 207 | 279 | 251 | N/M |
Commercial and business lending | 176,877 | 172,242 | 2.7% |
| 174,410 | 202,735 | 220,716 | (19.9%) |
Commercial real estate - investor | 34,790 | 52,429 | (33.6%) |
| 87,526 | 89,342 | 101,775 | (65.8%) |
Real estate construction | 4,870 | 5,263 | (7.5%) |
| 7,540 | 9,184 | 10,040 | (51.5%) |
Commercial real estate lending | 39,660 | 57,692 | (31.3%) |
| 95,066 | 98,526 | 111,815 | (64.5%) |
Total commercial | 216,537 | 229,934 | (5.8%) |
| 269,476 | 301,261 | 332,531 | (34.9%) |
Home equity revolving lines of credit | 310 | 303 | 2.3% |
| 170 | 308 | 450 | (31.1%) |
Home equity loans junior liens | 741 | 1,810 | (59.1%) |
| 2,067 | 2,307 | 2,871 | (74.2%) |
Home equity | 1,051 | 2,113 | (50.3%) |
| 2,237 | 2,615 | 3,321 | (68.4%) |
Installment | - | 50 | (100.0%) |
| 67 | 83 | 99 | (100.0%) |
Residential mortgage | 2,091 | 3,312 | (36.9%) |
| 5,342 | 5,917 | 7,882 | (73.5%) |
Total consumer | 3,142 | 5,475 | (42.6%) |
| 7,646 | 8,615 | 11,302 | (72.2%) |
Total potential problem loans | $ 219,679 | $ 235,409 | (6.7%) |
| $ 277,122 | $ 309,876 | $ 343,833 | (36.1%) |
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N/M = Not meaningful. |
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Associated Banc-Corp |
Net Interest Income Analysis - Taxable Equivalent Basis |
Sequential Quarter | Three months ended March 31, 2014 |
| Three months ended December 31, 2013 |
| Average | Interest | Average |
| Average | Interest | Average |
(in thousands) | Balance | Income / Expense | Yield / Rate |
| Balance | Income / Expense | Yield / Rate |
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Earning assets: |
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Loans: (1) (2) (3) |
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Commercial and business lending | $ 6,131,185 | $ 51,681 | 3.42% |
| $ 5,882,438 | $ 51,498 | 3.47% |
Commercial real estate lending | 3,907,363 | 35,591 | 3.69 |
| 3,736,314 | 40,241 | 4.28 |
Total commercial | 10,038,548 | 87,272 | 3.52 |
| 9,618,752 | 91,739 | 3.79 |
Residential mortgage | 3,926,734 | 32,664 | 3.33 |
| 3,856,944 | 32,201 | 3.34 |
Retail | 2,199,335 | 24,413 | 4.48 |
| 2,272,588 | 25,851 | 4.53 |
Total loans | 16,164,617 | 144,349 | 3.61 |
| 15,748,284 | 149,791 | 3.78 |
Investment securities | 5,450,066 | 36,922 | 2.71 |
| 5,188,616 | 35,331 | 2.72 |
Other short-term investments | 277,820 | 1,449 | 2.09 |
| 305,165 | 1,453 | 1.90 |
Investments and other | 5,727,886 | 38,371 | 2.68 |
| 5,493,781 | 36,784 | 2.68 |
Total earning assets | 21,892,503 | $ 182,720 | 3.36 |
| 21,242,065 | $ 186,575 | 3.50 |
Other assets, net | 2,320,710 |
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|
| 2,316,660 |
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Total assets | $ 24,213,213 |
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|
| $ 23,558,725 |
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Interest-bearing liabilities: |
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Savings deposits | $ 1,195,337 | $ 220 | 0.07% |
| $ 1,200,338 | $ 248 | 0.08% |
Interest-bearing demand deposits | 2,796,247 | 823 | 0.12 |
| 2,852,090 | 1,047 | 0.15 |
Money market deposits | 7,173,106 | 2,825 | 0.16 |
| 7,748,650 | 3,399 | 0.17 |
Time deposits | 1,659,277 | 2,291 | 0.56 |
| 1,727,138 | 2,646 | 0.61 |
Total interest-bearing deposits | 12,823,967 | 6,159 | 0.19 |
| 13,528,216 | 7,340 | 0.22 |
Federal funds purchased and securities sold under |
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agreements to repurchase | 805,187 | 305 | 0.15 |
| 613,943 | 271 | 0.18 |
Other short-term funding | 328,516 | 116 | 0.14 |
| 726,551 | 228 | 0.12 |
Long-term funding | 3,004,520 | 6,511 | 0.87 |
| 1,266,464 | 6,499 | 2.05 |
Total short and long-term funding | 4,138,223 | 6,932 | 0.67 |
| 2,606,958 | 6,998 | 1.07 |
Total interest-bearing liabilities | 16,962,190 | $ 13,091 | 0.31 |
| 16,135,174 | $ 14,338 | 0.35 |
Noninterest-bearing demand deposits | 4,166,305 |
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| 4,353,315 |
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Other liabilities | 195,950 |
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| 197,598 |
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Stockholders' equity | 2,888,768 |
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| 2,872,638 |
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Total liabilities and stockholders' equity | $ 24,213,213 |
|
|
| $ 23,558,725 |
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|
|
|
|
|
Net interest income and rate spread (1) |
| $ 169,629 | 3.05% |
|
| $ 172,237 | 3.15% |
Net interest margin (1) |
|
| 3.12% |
|
|
| 3.23% |
Taxable equivalent adjustment |
| $ 4,656 |
|
|
| $ 5,038 |
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|
Net Interest Income Analysis - Taxable Equivalent Basis |
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|
Comparable Quarter | Three months ended March 31, 2014 |
| Three months ended March 31, 2013 |
| Average | Interest | Average |
| Average | Interest | Average |
(in thousands) | Balance | Income / Expense | Yield / Rate |
| Balance | Income / Expense | Yield / Rate |
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Earning assets: |
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Loans: (1) (2) (3) |
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Commercial and business lending | $ 6,131,185 | $ 51,681 | 3.42% |
| $ 5,615,036 | $ 50,712 | 3.66% |
Commercial real estate lending | 3,907,363 | 35,591 | 3.69 |
| 3,592,509 | 35,864 | 4.04 |
Total commercial | 10,038,548 | 87,272 | 3.52 |
| 9,207,545 | 86,576 | 3.81 |
Residential mortgage | 3,926,734 | 32,664 | 3.33 |
| 3,622,455 | 30,481 | 3.37 |
Retail | 2,199,335 | 24,413 | 4.48 |
| 2,618,152 | 29,381 | 4.53 |
Total loans | 16,164,617 | 144,349 | 3.61 |
| 15,448,152 | 146,438 | 3.83 |
Investment securities | 5,450,066 | 36,922 | 2.71 |
| 4,891,714 | 32,757 | 2.68 |
Other short-term investments | 277,820 | 1,449 | 2.09 |
| 341,053 | 1,247 | 1.47 |
Investments and other | 5,727,886 | 38,371 | 2.68 |
| 5,232,767 | 34,004 | 2.60 |
Total earning assets | 21,892,503 | $ 182,720 | 3.36 |
| 20,680,919 | $ 180,442 | 3.52 |
Other assets, net | 2,320,710 |
|
|
| 2,357,789 |
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|
Total assets | $ 24,213,213 |
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| $ 23,038,708 |
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Interest-bearing liabilities: |
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Savings deposits | $ 1,195,337 | $ 220 | 0.07% |
| $ 1,141,781 | $ 208 | 0.07% |
Interest-bearing demand deposits | 2,796,247 | 823 | 0.12 |
| 2,779,929 | 1,179 | 0.17 |
Money market deposits | 7,173,106 | 2,825 | 0.16 |
| 7,044,344 | 3,615 | 0.21 |
Time deposits | 1,659,277 | 2,291 | 0.56 |
| 1,994,406 | 3,539 | 0.72 |
Total interest-bearing deposits | 12,823,967 | 6,159 | 0.19 |
| 12,960,460 | 8,541 | 0.27 |
Federal funds purchased and securities sold under |
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agreements to repurchase | 805,187 | 305 | 0.15 |
| 779,550 | 410 | 0.21 |
Other short-term funding | 328,516 | 116 | 0.14 |
| 1,018,553 | 332 | 0.13 |
Long-term funding | 3,004,520 | 6,511 | 0.87 |
| 960,820 | 8,416 | 3.51 |
Total short and long-term funding | 4,138,223 | 6,932 | 0.67 |
| 2,758,923 | 9,158 | 1.33 |
Total interest-bearing liabilities | 16,962,190 | $ 13,091 | 0.31 |
| 15,719,383 | $ 17,699 | 0.45 |
Noninterest-bearing demand deposits | 4,166,305 |
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|
| 4,185,924 |
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Other liabilities | 195,950 |
|
|
| 219,902 |
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|
Stockholders' equity | 2,888,768 |
|
|
| 2,913,499 |
|
|
Total liabilities and stockholders' equity | $ 24,213,213 |
|
|
| $ 23,038,708 |
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|
|
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Net interest income and rate spread (1) |
| $ 169,629 | 3.05% |
|
| $ 162,743 | 3.07% |
Net interest margin (1) |
|
| 3.12% |
|
|
| 3.17% |
Taxable equivalent adjustment |
| $ 4,656 |
|
|
| $ 5,090 |
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(1) The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions. |
(2) Nonaccrual loans and loans held for sale have been included in the average balances. |
(3) Interest income includes net loan fees. |
Associated Banc-Corp |
Financial Summary and Comparison |
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Period End Loan Composition |
|
| Mar14 vs Dec13 |
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| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Commercial and industrial | $ 5,222,141 | $ 4,822,680 | 8.3% |
| $ 4,703,056 | $ 4,752,838 | $ 4,651,143 | 12.3% |
Commercial real estate - owner occupied | 1,098,089 | 1,114,715 | (1.5%) |
| 1,147,352 | 1,174,866 | 1,199,513 | (8.5%) |
Lease financing | 52,500 | 55,483 | (5.4%) |
| 51,727 | 55,084 | 57,908 | (9.3%) |
Commercial and business lending | 6,372,730 | 5,992,878 | 6.3% |
| 5,902,135 | 5,982,788 | 5,908,564 | 7.9% |
Commercial real estate - investor | 3,001,219 | 2,939,456 | 2.1% |
| 2,847,152 | 3,010,992 | 2,900,167 | 3.5% |
Real estate construction | 969,617 | 896,248 | 8.2% |
| 834,744 | 800,569 | 729,145 | 33.0% |
Commercial real estate lending | 3,970,836 | 3,835,704 | 3.5% |
| 3,681,896 | 3,811,561 | 3,629,312 | 9.4% |
Total commercial | 10,343,566 | 9,828,582 | 5.2% |
| 9,584,031 | 9,794,349 | 9,537,876 | 8.4% |
Home equity revolving lines of credit | 856,679 | 874,840 | (2.1%) |
| 875,703 | 888,162 | 904,187 | (5.3%) |
Home equity loans 1st liens | 705,835 | 742,120 | (4.9%) |
| 794,912 | 863,779 | 940,017 | (24.9%) |
Home equity loans junior liens | 199,488 | 208,054 | (4.1%) |
| 220,763 | 234,292 | 254,203 | (21.5%) |
Home equity | 1,762,002 | 1,825,014 | (3.5%) |
| 1,891,378 | 1,986,233 | 2,098,407 | (16.0%) |
Installment | 393,321 | 407,074 | (3.4%) |
| 420,268 | 434,029 | 447,445 | (12.1%) |
Residential mortgage | 3,942,555 | 3,835,591 | 2.8% |
| 3,690,177 | 3,531,988 | 3,467,834 | 13.7% |
Total consumer | 6,097,878 | 6,067,679 | 0.5% |
| 6,001,823 | 5,952,250 | 6,013,686 | 1.4% |
Total loans | $ 16,441,444 | $ 15,896,261 | 3.4% |
| $ 15,585,854 | $ 15,746,599 | $ 15,551,562 | 5.7% |
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Period End Deposit and Customer Funding Composition | Mar14 vs Dec13 |
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| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Noninterest-bearing demand | $ 4,478,981 | $ 4,626,312 | (3.2%) |
| $ 4,453,663 | $ 4,259,776 | $ 4,453,109 | 0.6% |
Savings | 1,252,669 | 1,159,512 | 8.0% |
| 1,195,944 | 1,211,567 | 1,197,134 | 4.6% |
Interest-bearing demand | 3,084,457 | 2,889,705 | 6.7% |
| 2,735,529 | 2,802,277 | 2,966,934 | 4.0% |
Money market | 7,069,173 | 6,906,442 | 2.4% |
| 8,199,281 | 7,040,317 | 6,836,678 | 3.4% |
Brokered CDs | 51,235 | 50,450 | 1.6% |
| 56,024 | 59,206 | 49,919 | 2.6% |
Other time | 1,573,412 | 1,634,746 | (3.8%) |
| 1,697,467 | 1,759,293 | 1,917,520 | (17.9%) |
Total deposits | 17,509,927 | 17,267,167 | 1.4% |
| 18,337,908 | 17,132,436 | 17,421,294 | 0.5% |
Customer repo sweeps | 548,179 | 419,247 | 30.8% |
| 515,555 | 489,700 | 617,038 | (11.2%) |
Customer repo term | - | - | N/M |
| - | - | 4,882 | (100.0%) |
Total customer funding | 548,179 | 419,247 | 30.8% |
| 515,555 | 489,700 | 621,920 | (11.9%) |
Total deposits and customer funding | $18,058,106 | $ 17,686,414 | 2.1% |
| $ 18,853,463 | $ 17,622,136 | $ 18,043,214 | 0.1% |
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Network transaction deposits included above in |
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interest-bearing demand and money market | $ 2,141,976 | $ 1,936,403 | 10.6% |
| $ 2,222,810 | $ 2,135,306 | $ 2,054,714 | 4.2% |
Brokered CDs | 51,235 | 50,450 | 1.6% |
| 56,024 | 59,206 | 49,919 | 2.6% |
Total network and brokered funding | 2,193,211 | 1,986,853 | 10.4% |
| 2,278,834 | 2,194,512 | 2,104,633 | 4.2% |
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Net customer deposits and funding (1) | $ 15,864,895 | $ 15,699,561 | 1.1% |
| $ 16,574,629 | $ 15,427,624 | $ 15,938,581 | (0.5%) |
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(1) Total deposits and customer funding excluding total network and brokered funding. |
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Quarter Average Loan Composition |
| Mar14 vs Dec13 |
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| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Commercial and industrial | $ 4,983,943 | $ 4,709,435 | 5.8% |
| $ 4,680,582 | $ 4,635,892 | $ 4,358,486 | 14.4% |
Commercial real estate - owner occupied | 1,093,114 | 1,119,186 | (2.3%) |
| 1,142,919 | 1,169,124 | 1,196,912 | (8.7%) |
Lease financing | 54,128 | 53,817 | 0.6% |
| 53,244 | 55,400 | 59,638 | (9.2%) |
Commercial and business lending | 6,131,185 | 5,882,438 | 4.2% |
| 5,876,745 | 5,860,416 | 5,615,036 | 9.2% |
Commercial real estate - investor | 2,993,046 | 2,878,176 | 4.0% |
| 2,940,115 | 2,951,524 | 2,899,930 | 3.2% |
Real estate construction | 914,317 | 858,138 | 6.5% |
| 828,780 | 770,584 | 692,579 | 32.0% |
Commercial real estate lending | 3,907,363 | 3,736,314 | 4.6% |
| 3,768,895 | 3,722,108 | 3,592,509 | 8.8% |
Total commercial | 10,038,548 | 9,618,752 | 4.4% |
| 9,645,640 | 9,582,524 | 9,207,545 | 9.0% |
Home equity revolving lines of credit | 868,614 | 876,938 | (0.9%) |
| 882,478 | 896,931 | 922,084 | (5.8%) |
Home equity loans 1st liens | 724,995 | 767,857 | (5.6%) |
| 826,653 | 902,554 | 976,466 | (25.8%) |
Home equity loans junior liens | 203,984 | 214,557 | (4.9%) |
| 227,021 | 242,796 | 262,193 | (22.2%) |
Home equity | 1,797,593 | 1,859,352 | (3.3%) |
| 1,936,152 | 2,042,281 | 2,160,743 | (16.8%) |
Installment | 401,742 | 413,236 | (2.8%) |
| 428,114 | 441,260 | 457,409 | (12.2%) |
Residential mortgage | 3,926,734 | 3,856,944 | 1.8% |
| 3,714,459 | 3,661,742 | 3,622,455 | 8.4% |
Total consumer | 6,126,069 | 6,129,532 | (0.1%) |
| 6,078,725 | 6,145,283 | 6,240,607 | (1.8%) |
Total loans | $ 16,164,617 | $ 15,748,284 | 2.6% |
| $ 15,724,365 | $ 15,727,807 | $ 15,448,152 | 4.6% |
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Quarter Average Deposit Composition |
|
| Mar14 vs Dec13 |
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| Mar14 vs Mar13 |
| Mar 31, 2014 | Dec 31, 2013 | % Change |
| Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | % Change |
Noninterest-bearing demand | $ 4,166,305 | $ 4,353,315 | (4.3%) |
| $ 4,264,304 | $ 4,191,704 | $ 4,185,924 | (0.5%) |
Savings | 1,195,337 | 1,200,338 | (0.4%) |
| 1,204,743 | 1,207,959 | 1,141,781 | 4.7% |
Interest-bearing demand | 2,796,247 | 2,852,090 | (2.0%) |
| 2,810,962 | 2,867,524 | 2,779,929 | 0.6% |
Money market | 7,173,106 | 7,748,650 | (7.4%) |
| 7,556,050 | 6,930,554 | 7,044,344 | 1.8% |
Time deposits | 1,659,277 | 1,727,138 | (3.9%) |
| 1,773,760 | 1,907,337 | 1,994,406 | (16.8%) |
Total deposits | $16,990,272 | $17,881,531 | (5.0%) |
| $17,609,819 | $17,105,078 | $17,146,384 | (0.9%) |
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SOURCE Associated Banc-Corp