GREEN BAY, Wis., July 18, 2013 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $47 million, or $0.28 per common share, for the quarter ended June 30, 2013. This compares to net income to common shareholders of $42 million, or $0.24 per common share, for the quarter ended June 30, 2012.
"We are pleased to report another quarter of solid results and continue to look for opportunities to deliver value for our shareholders," said President and CEO Philip B. Flynn. "Our mortgage banking business had a record quarter and we are encouraged by momentum being created in our other lines of business. We remain focused on strengthening our franchise and deploying our capital in a disciplined manner, consistent with our commitment to building long-term shareholder value at Associated."
HIGHLIGHTS
- Net income to common shareholders of $47 million, up 10.9% from the prior year period
- Quarterly earnings have improved 10 consecutive quarters
- Return on Tier 1 common equity for the quarter was 9.9%, compared to 9.3% for the prior year period
- Average loan balances increased by $280 million, or 2% from the first quarter and have increased $1.1 billion, or 8% from a year ago
- Average total commercial loan balances grew by 4% from the first quarter and accounted for the majority of this quarter's average loan growth
- Average deposits for the second quarter increased by $2.1 billion, or 14% from a year ago to $17.1 billion
- Checking and savings deposits continued to grow
- Credit quality continued to improve with net charge offs, nonaccrual loans, and potential problem loans all declining quarter over quarter
- During the second quarter, the Company repurchased $30 million, or approximately 2 million shares, of common stock at an average cost of $15.09.
- Capital ratios remain very strong with a Tier 1 common equity ratio of 11.48%
SECOND QUARTER 2013 FINANCIAL RESULTS
Loans
Average loans of $15.7 billion increased by $280 million, or 2% from the first quarter and increased $1.1 billion, or 8%, from the year ago quarter. Commercial and business lending average balances increased by $245 million, or 4% from the prior quarter. Commercial real estate lending average balances grew by $130 million, or 4% on a linked-quarter basis. The residential mortgage portfolio average balances grew by $39 million, or 1%, during the quarter. This growth was partially offset by continued run off in home equity and installment loan balances, which experienced an average balance decline of $135 million, or 5%, during the quarter.
Deposits
Average deposits of $17.1 billion were relatively flat compared to the first quarter but have increased by $2.1 billion, or 14%, from the year ago quarter. During the second quarter, average balance growth in checking and savings deposits were offset by a 2% decline in money market deposits coupled with the continued decline in time deposits.
Net Interest Income and Net Interest Margin
Second quarter net interest income of $160 million increased $2 million, or 2% compared to the prior quarter and $6 million, or 4% compared to the year ago quarter.
Second quarter net interest margin was 3.16%, a slight decrease of 1 basis point from the 3.17% reported in first quarter and a decrease of 14 basis points from a year ago. The decrease from the first quarter was the result of a 5 basis point decline in asset yields which was offset by 4 basis points of liability cost management actions.
Noninterest Income and Expense
Noninterest income for the quarter was $84 million, up $2 million, or 3%, from the first quarter and grew $8 million or 11% from the year ago quarter. Trust fees, service charges, non-deposit fees, and brokerage commissions all improved during the quarter. However, core fee revenue was flat to the prior quarter as these improvements were offset by a $3 million reserve related to third party insurance products sold in prior years. Mortgage banking income increased $1 million from the prior quarter as an increase of $3 million in mortgage servicing rights valuation allowance recoveries ($8 million in second quarter compared to $5 million in the first quarter) was partially offset by $2 million in lower gain on sales. The $1 million decline in asset gains and losses was primarily related to a $2 million real estate write down as the Company continues to identify cost efficiency opportunities within its footprint.
Total noninterest expense for the quarter ended June 30, 2013 was $170 million, up $3 million, or 2%, from the first quarter. Personnel expense increased $2 million from the first quarter, including $1 million of severance charges related to our on-going consolidation and efficiency efforts. Losses other than loans were $2 million higher than the first quarter due to increases in unfunded commitment reserves. The efficiency ratio continued to improve during the period reflecting management's focus on expense management.
Credit
The Company reported another quarter of improving credit quality with nonaccrual loans down 4%, to $217 million compared to the first quarter, and down 32% from a year ago. The ratio of nonaccrual loans to total loans now stands at 1.38% and has improved for the 13th consecutive quarter.
Net charge offs of $14 million for the second quarter were down slightly from the first quarter, and were $10 million lower than a year ago.
Second quarter provision for loan losses was $4 million, equal to the first quarter. The Company's allowance for loan losses was $277 million, representing an allowance equal to 1.76% of loans and representing a coverage ratio of over 127% of nonaccrual loans at June 30, 2013.
Capital Ratios
The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.48% at June 30, 2013. The Company's capital ratios continue to be well in excess of both current and proposed "well-capitalized" regulatory benchmarks.
SECOND QUARTER 2013 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 18, 2013. Interested parties can listen to the call live on the Internet through the investor relations section of the company's website, http://investor.associatedbank.com or by dialing 888-317-6016. 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 412-317-6016. Participants should ask the operator for the Associated Banc-Corp second quarter 2013 earnings call.
An audio archive of the webcast will be available on the company's website at http://investor.associatedbank.com. A telephone replay will be available one hour after the completion of the call through 8:00 a.m. CT on August 19, 2013, by dialing 877-344-7529 and entering the conference ID number 10030196. The replay number for international callers is 412-317-0088.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NASDAQ: ASBC) has total assets of $24 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 through approximately 240 banking locations serving more than 150 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.
Investor Contact: Brian Klaus, Senior Vice President, Investor Relations 920-491-7059 Media Contact: Autumn Latimore, Senior Vice President, Public Relations 414-278-1860 |
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Consolidated Balance Sheets (Unaudited) |
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Associated Banc-Corp |
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| June 30, |
| March 31, |
| Seql Qtr |
| December 31, |
| September 30, |
| June 30, |
| Comp Qtr |
(in thousands) |
| 2013 |
| 2013 |
| $ Change |
| 2012 |
| 2012 |
| 2012 |
| $ Change |
Assets |
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Cash and due from banks |
| $ 422,779 |
| $ 336,247 |
| $ 86,532 |
| $ 563,304 |
| $ 419,529 |
| $ 414,760 |
| $ 8,019 |
Interest-bearing deposits in other |
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financial institutions |
| 121,390 |
| 82,555 |
| 38,835 |
| 147,434 |
| 531,303 |
| 180,050 |
| (58,660) |
Federal funds sold and securities purchased |
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under agreements to resell |
| 10,800 |
| 8,600 |
| 2,200 |
| 27,135 |
| 2,460 |
| 3,800 |
| 7,000 |
Securities held to maturity, at amortized cost |
| 75,946 |
| 54,123 |
| 21,823 |
| 39,877 |
| 21,852 |
| - |
| 75,946 |
Securities available for sale, at fair value |
| 4,854,319 |
| 4,950,317 |
| (95,998) |
| 4,926,758 |
| 4,496,198 |
| 4,521,436 |
| 332,883 |
Federal Home Loan Bank and Federal |
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Reserve Bank stocks, at cost |
| 181,008 |
| 152,490 |
| 28,518 |
| 166,774 |
| 166,100 |
| 176,041 |
| 4,967 |
Loans held for sale |
| 203,576 |
| 173,389 |
| 30,187 |
| 261,410 |
| 157,093 |
| 157,481 |
| 46,095 |
Loans |
| 15,746,599 |
| 15,551,562 |
| 195,037 |
| 15,411,022 |
| 14,966,214 |
| 14,698,902 |
| 1,047,697 |
Allowance for loan losses |
| (277,218) |
| (286,923) |
| 9,705 |
| (297,409) |
| (315,150) |
| (332,658) |
| 55,440 |
Loans, net |
| 15,469,381 |
| 15,264,639 |
| 204,742 |
| 15,113,613 |
| 14,651,064 |
| 14,366,244 |
| 1,103,137 |
Premises and equipment, net |
| 258,903 |
| 254,674 |
| 4,229 |
| 253,958 |
| 238,756 |
| 225,245 |
| 33,658 |
Goodwill |
| 929,168 |
| 929,168 |
| - |
| 929,168 |
| 929,168 |
| 929,168 |
| - |
Other intangible assets, net |
| 74,612 |
| 66,294 |
| 8,318 |
| 61,176 |
| 61,294 |
| 64,812 |
| 9,800 |
Trading assets |
| 49,732 |
| 65,014 |
| (15,282) |
| 70,711 |
| 76,159 |
| 73,484 |
| (23,752) |
Other assets |
| 965,330 |
| 940,258 |
| 25,072 |
| 926,417 |
| 987,378 |
| 968,579 |
| (3,249) |
Total assets |
| $ 23,616,944 |
| 23,277,768 |
| $ 339,176 |
| $ 23,487,735 |
| $ 22,738,354 |
| $ 22,081,100 |
| $ 1,535,844 |
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Liabilities and Stockholders' Equity |
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Noninterest-bearing demand deposits |
| $ 4,259,776 |
| 4,453,109 |
| $(193,333) |
| $ 4,759,556 |
| $ 4,320,437 |
| $ 3,874,429 |
| $ 385,347 |
Interest-bearing deposits |
| 12,872,660 |
| 12,968,185 |
| (95,525) |
| 12,180,309 |
| 12,130,155 |
| 11,232,442 |
| 1,640,218 |
Total deposits |
| 17,132,436 |
| 17,421,294 |
| (288,858) |
| 16,939,865 |
| 16,450,592 |
| 15,106,871 |
| 2,025,565 |
Federal funds purchased and securities sold |
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under agreements to repurchase |
| 545,740 |
| 730,855 |
| (185,115) |
| 750,455 |
| 1,138,027 |
| 1,253,270 |
| (707,530) |
Other short-term funding |
| 2,218,760 |
| 1,038,697 |
| 1,180,063 |
| 1,576,484 |
| 615,258 |
| 1,400,000 |
| 818,760 |
Long-term funding |
| 614,822 |
| 915,063 |
| (300,241) |
| 1,015,346 |
| 1,305,422 |
| 1,150,729 |
| (535,907) |
Trading liabilities |
| 52,598 |
| 70,236 |
| (17,638) |
| 76,343 |
| 82,861 |
| 80,107 |
| (27,509) |
Accrued expenses and other liabilities |
| 175,612 |
| 165,358 |
| 10,254 |
| 192,843 |
| 195,742 |
| 180,502 |
| (4,890) |
Total liabilities |
| 20,739,968 |
| 20,341,503 |
| 398,465 |
| 20,551,336 |
| 19,787,902 |
| 19,171,479 |
| 1,568,489 |
Stockholders' Equity |
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Preferred equity |
| 63,272 |
| 63,272 |
| - |
| 63,272 |
| 63,272 |
| 63,272 |
| - |
Common stock |
| 1,750 |
| 1,750 |
| - |
| 1,750 |
| 1,750 |
| 1,750 |
| - |
Surplus |
| 1,610,243 |
| 1,605,966 |
| 4,277 |
| 1,602,136 |
| 1,599,070 |
| 1,594,995 |
| 15,248 |
Retained earnings |
| 1,330,737 |
| 1,297,692 |
| 33,045 |
| 1,281,811 |
| 1,250,189 |
| 1,213,735 |
| 117,002 |
Accumulated other comprehensive income (loss) |
| (25,015) |
| 42,991 |
| (68,006) |
| 48,603 |
| 67,303 |
| 66,579 |
| (91,594) |
Treasury stock |
| (104,011) |
| (75,406) |
| (28,605) |
| (61,173) |
| (31,132) |
| (30,710) |
| (73,301) |
Total stockholders' equity |
| 2,876,976 |
| 2,936,265 |
| (59,289) |
| 2,936,399 |
| 2,950,452 |
| 2,909,621 |
| (32,645) |
Total liabilities and stockholders' equity |
| $ 23,616,944 |
| 23,277,768 |
| $ 339,176 |
| $ 23,487,735 |
| $ 22,738,354 |
| $ 22,081,100 |
| $ 1,535,844 |
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Consolidated Statements of Income (Unaudited) |
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Associated Banc-Corp |
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| For The Three Months Ended |
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| For The Six Months Ended |
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| June 30, |
| Quarter |
| June 30, |
| Year-to-Date |
(in thousands, except per share amounts) |
| 2013 |
| 2012 |
| $ Change | % Change |
| 2013 |
| 2012 |
| $ Change | % Change |
Interest Income |
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Interest and fees on loans |
| $ 146,896 |
| $ 147,188 |
| $ (292) | (0.2%) |
| $ 292,423 |
| $ 296,211 |
| $ (3,788) | (1.3%) |
Interest and dividends on investment securities: |
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Taxable |
| 21,446 |
| 23,000 |
| (1,554) | (6.8%) |
| 43,059 |
| 46,029 |
| (2,970) | (6.5%) |
Tax-exempt |
| 6,785 |
| 7,135 |
| (350) | (4.9%) |
| 13,750 |
| 14,409 |
| (659) | (4.6%) |
Other interest |
| 1,233 |
| 1,262 |
| (29) | (2.3%) |
| 2,480 |
| 2,509 |
| (29) | (1.2%) |
Total interest income |
| 176,360 |
| 178,585 |
| (2,225) | (1.2%) |
| 351,712 |
| 359,158 |
| (7,446) | (2.1%) |
Interest Expense |
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Interest on deposits |
| 7,769 |
| 10,553 |
| (2,784) | (26.4%) |
| 16,310 |
| 22,589 |
| (6,279) | (27.8%) |
Interest on Federal funds purchased and securities |
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sold under agreements to repurchase |
| 333 |
| 612 |
| (279) | (45.6%) |
| 743 |
| 1,379 |
| (636) | (46.1%) |
Interest on other short-term funding |
| 525 |
| 1,197 |
| (672) | (56.1%) |
| 857 |
| 2,253 |
| (1,396) | (62.0%) |
Interest on long-term funding |
| 7,551 |
| 11,956 |
| (4,405) | (36.8%) |
| 15,967 |
| 24,002 |
| (8,035) | (33.5%) |
Total interest expense |
| 16,178 |
| 24,318 |
| (8,140) | (33.5%) |
| 33,877 |
| 50,223 |
| (16,346) | (32.5%) |
Net Interest Income |
| 160,182 |
| 154,267 |
| 5,915 | 3.8% |
| 317,835 |
| 308,935 |
| 8,900 | 2.9% |
Provision for loan losses |
| 4,000 |
| - |
| 4,000 | N/M |
| 8,000 |
| - |
| 8,000 | N/M |
Net interest income after provision for |
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loan losses |
| 156,182 |
| 154,267 |
| 1,915 | 1.2% |
| 309,835 |
| 308,935 |
| 900 | 0.3% |
Noninterest Income |
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Trust service fees |
| 11,405 |
| 10,125 |
| 1,280 | 12.6% |
| 22,315 |
| 19,912 |
| 2,403 | 12.1% |
Service charges on deposit accounts |
| 17,443 |
| 16,768 |
| 675 | 4.0% |
| 34,272 |
| 34,810 |
| (538) | (1.5%) |
Card-based and other nondeposit fees |
| 12,591 |
| 12,084 |
| 507 | 4.2% |
| 24,541 |
| 22,963 |
| 1,578 | 6.9% |
Insurance commissions |
| 9,631 |
| 12,912 |
| (3,281) | (25.4%) |
| 21,394 |
| 24,502 |
| (3,108) | (12.7%) |
Brokerage and annuity commissions |
| 3,688 |
| 4,206 |
| (518) | (12.3%) |
| 7,204 |
| 8,333 |
| (1,129) | (13.5%) |
Total core fee-based revenue |
| 54,758 |
| 56,095 |
| (1,337) | (2.4%) |
| 109,726 |
| 110,520 |
| (794) | (0.7%) |
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Mortgage banking, net |
| 19,263 |
| 16,735 |
| 2,528 | 15.1% |
| 37,028 |
| 34,389 |
| 2,639 | 7.7% |
Capital market fees, net |
| 5,074 |
| 2,673 |
| 2,401 | 89.8% |
| 7,657 |
| 6,389 |
| 1,268 | 19.8% |
Bank owned life insurance income |
| 3,281 |
| 3,164 |
| 117 | 3.7% |
| 6,251 |
| 7,456 |
| (1,205) | (16.2%) |
Asset gains (losses), net |
| (44) |
| (4,984) |
| 4,940 | (99.1%) |
| 792 |
| (8,578) |
| 9,370 | (109.2%) |
Investment securities gains, net |
| 34 |
| 563 |
| (529) | (94.0%) |
| 334 |
| 603 |
| (269) | (44.6%) |
Other |
| 1,944 |
| 1,705 |
| 239 | 14.0% |
| 4,522 |
| 3,618 |
| 904 | 25.0% |
Total noninterest income |
| 84,310 |
| 75,951 |
| 8,359 | 11.0% |
| 166,310 |
| 154,397 |
| 11,913 | 7.7% |
Noninterest Expense |
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Personnel expense |
| 99,791 |
| 93,819 |
| 5,972 | 6.4% |
| 197,698 |
| 188,100 |
| 9,598 | 5.1% |
Occupancy |
| 14,305 |
| 14,008 |
| 297 | 2.1% |
| 29,967 |
| 29,187 |
| 780 | 2.7% |
Equipment |
| 6,462 |
| 5,719 |
| 743 | 13.0% |
| 12,629 |
| 11,187 |
| 1,442 | 12.9% |
Data processing |
| 12,651 |
| 11,304 |
| 1,347 | 11.9% |
| 24,159 |
| 20,820 |
| 3,339 | 16.0% |
Business development and advertising |
| 5,028 |
| 5,468 |
| (440) | (8.0%) |
| 9,565 |
| 10,849 |
| (1,284) | (11.8%) |
Other intangible amortization |
| 1,011 |
| 1,049 |
| (38) | (3.6%) |
| 2,022 |
| 2,098 |
| (76) | (3.6%) |
Loan expense |
| 3,044 |
| 2,948 |
| 96 | 3.3% |
| 6,328 |
| 5,858 |
| 470 | 8.0% |
Legal and professional fees |
| 5,483 |
| 5,657 |
| (174) | (3.1%) |
| 10,828 |
| 15,372 |
| (4,544) | (29.6%) |
Losses other than loans |
| 1,799 |
| 2,060 |
| (261) | (12.7%) |
| 1,483 |
| 5,610 |
| (4,127) | (73.6%) |
Foreclosure/OREO expense |
| 2,302 |
| 4,343 |
| (2,041) | (47.0%) |
| 4,724 |
| 7,705 |
| (2,981) | (38.7%) |
FDIC expense |
| 4,395 |
| 4,778 |
| (383) | (8.0%) |
| 9,827 |
| 9,648 |
| 179 | 1.9% |
Other |
| 13,725 |
| 14,877 |
| (1,152) | (7.7%) |
| 27,681 |
| 29,358 |
| (1,677) | (5.7%) |
Total noninterest expense |
| 169,996 |
| 166,030 |
| 3,966 | 2.4% |
| 336,911 |
| 335,792 |
| 1,119 | 0.3% |
Income before income taxes |
| 70,496 |
| 64,188 |
| 6,308 | 9.8% |
| 139,234 |
| 127,540 |
| 11,694 | 9.2% |
Income tax expense |
| 22,608 |
| 20,871 |
| 1,737 | 8.3% |
| 43,958 |
| 41,590 |
| 2,368 | 5.7% |
Net income |
| 47,888 |
| 43,317 |
| 4,571 | 10.6% |
| 95,276 |
| 85,950 |
| 9,326 | 10.9% |
Preferred stock dividends and discount |
| 1,300 |
| 1,300 |
| - | 0.0% |
| 2,600 |
| 2,600 |
| - | 0.0% |
Net income available to common equity |
| $ 46,588 |
| $ 42,017 |
| 4,571 | 10.9% |
| $ 92,676 |
| $ 83,350 |
| $ 9,326 | 11.2% |
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Earnings Per Common Share: |
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|
|
|
|
|
|
Basic |
| $ 0.28 |
| $ 0.24 |
| $ 0.04 | 16.7% |
| $ 0.55 |
| $ 0.48 |
| $ 0.07 | 14.6% |
Diluted |
| $ 0.28 |
| $ 0.24 |
| $ 0.04 | 16.7% |
| $ 0.55 |
| $ 0.48 |
| $ 0.07 | 14.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 166,605 |
| 172,839 |
| (6,234) | (3.6%) |
| 167,415 |
| 173,343 |
| (5,928) | (3.4%) |
Diluted |
| 166,748 |
| 172,841 |
| (6,093) | (3.5%) |
| 167,552 |
| 173,345 |
| (5,793) | (3.3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income (Unaudited) - Quarterly Trend |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associated Banc-Corp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sequential Qtr |
|
|
|
|
|
|
|
|
| Comparable Qtr |
|
(in thousands, except per share amounts) |
| 2Q13 |
| 1Q13 |
| $ Change | % Change |
|
| 4Q12 |
| 3Q12 |
| 2Q12 |
|
| $ Change | % Change |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
| $ 146,896 |
| $ 145,527 |
| $ 1,369 | 0.9% |
|
| $ 150,107 |
| $ 149,647 |
| $ 147,188 |
|
| $ (292) | (0.2%) |
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
| 21,446 |
| 21,613 |
| (167) | (0.8%) |
|
| 20,368 |
| 20,548 |
| 23,000 |
|
| (1,554) | (6.8%) |
|
Tax-exempt |
| 6,785 |
| 6,965 |
| (180) | (2.6%) |
|
| 7,119 |
| 7,127 |
| 7,135 |
|
| (350) | (4.9%) |
|
Other interest |
| 1,233 |
| 1,247 |
| (14) | (1.1%) |
|
| 2,876 |
| 1,334 |
| 1,262 |
|
| (29) | (2.3%) |
|
Total interest income |
| 176,360 |
| 175,352 |
| 1,008 | 0.6% |
|
| 180,470 |
| 178,656 |
| 178,585 |
|
| (2,225) | (1.2%) |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
| 7,769 |
| 8,541 |
| (772) | (9.0%) |
|
| 9,091 |
| 9,751 |
| 10,553 |
|
| (2,784) | (26.4%) |
|
Interest on Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
| 333 |
| 410 |
| (77) | (18.8%) |
|
| 558 |
| 750 |
| 612 |
|
| (279) | (45.6%) |
|
Interest on other short-term funding |
| 525 |
| 332 |
| 193 | 58.1% |
|
| 226 |
| 815 |
| 1,197 |
|
| (672) | (56.1%) |
|
Interest on long-term funding |
| 7,551 |
| 8,416 |
| (865) | (10.3%) |
|
| 9,140 |
| 11,738 |
| 11,956 |
|
| (4,405) | (36.8%) |
|
Total interest expense |
| 16,178 |
| 17,699 |
| (1,521) | (8.6%) |
|
| 19,015 |
| 23,054 |
| 24,318 |
|
| (8,140) | (33.5%) |
|
Net Interest Income |
| 160,182 |
| 157,653 |
| 2,529 | 1.6% |
|
| 161,455 |
| 155,602 |
| 154,267 |
|
| 5,915 | 3.8% |
|
Provision for loan losses |
| 4,000 |
| 4,000 |
| - | 0.0% |
|
| 3,000 |
| - |
| - |
|
| 4,000 | N/M |
|
Net interest income after provision for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loan losses |
| 156,182 |
| 153,653 |
| 2,529 | 1.6% |
|
| 158,455 |
| 155,602 |
| 154,267 |
|
| 1,915 | 1.2% |
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust service fees |
| 11,405 |
| 10,910 |
| 495 | 4.5% |
|
| 10,429 |
| 10,396 |
| 10,125 |
|
| 1,280 | 12.6% |
|
Service charges on deposit accounts |
| 17,443 |
| 16,829 |
| 614 | 3.6% |
|
| 16,817 |
| 17,290 |
| 16,768 |
|
| 675 | 4.0% |
|
Card-based and other nondeposit fees |
| 12,591 |
| 11,950 |
| 641 | 5.4% |
|
| 12,690 |
| 12,209 |
| 12,084 |
|
| 507 | 4.2% |
|
Insurance commissions |
| 9,631 |
| 11,763 |
| (2,132) | (18.1%) |
|
| 10,862 |
| 11,650 |
| 12,912 |
|
| (3,281) | (25.4%) |
|
Brokerage and annuity commissions |
| 3,688 |
| 3,516 |
| 172 | 4.9% |
|
| 3,678 |
| 3,632 |
| 4,206 |
|
| (518) | (12.3%) |
|
Total core fee-based revenue |
| 54,758 |
| 54,968 |
| (210) | (0.4%) |
|
| 54,476 |
| 55,177 |
| 56,095 |
|
| (1,337) | (2.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking, net |
| 19,263 |
| 17,765 |
| 1,498 | 8.4% |
|
| 13,530 |
| 15,581 |
| 16,735 |
|
| 2,528 | 15.1% |
|
Capital market fees, net |
| 5,074 |
| 2,583 |
| 2,491 | 96.4% |
|
| 4,243 |
| 3,609 |
| 2,673 |
|
| 2,401 | 89.8% |
|
Bank owned life insurance income |
| 3,281 |
| 2,970 |
| 311 | 10.5% |
|
| 3,206 |
| 3,290 |
| 3,164 |
|
| 117 | 3.7% |
|
Asset gains (losses), net |
| (44) |
| 836 |
| (880) | (105.3%) |
|
| (209) |
| (3,309) |
| (4,984) |
|
| 4,940 | (99.1%) |
|
Investment securities gains, net |
| 34 |
| 300 |
| (266) | (88.7%) |
|
| 152 |
| 3,506 |
| 563 |
|
| (529) | (94.0%) |
|
Other |
| 1,944 |
| 2,578 |
| (634) | (24.6%) |
|
| 2,507 |
| 3,134 |
| 1,705 |
|
| 239 | 14.0% |
|
Total noninterest income |
| 84,310 |
| 82,000 |
| 2,310 | 2.8% |
|
| 77,905 |
| 80,988 |
| 75,951 |
|
| 8,359 | 11.0% |
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expense |
| 99,791 |
| 97,907 |
| 1,884 | 1.9% |
|
| 98,073 |
| 95,231 |
| 93,819 |
|
| 5,972 | 6.4% |
|
Occupancy |
| 14,305 |
| 15,662 |
| (1,357) | (8.7%) |
|
| 17,273 |
| 14,334 |
| 14,008 |
|
| 297 | 2.1% |
|
Equipment |
| 6,462 |
| 6,167 |
| 295 | 4.8% |
|
| 6,444 |
| 5,935 |
| 5,719 |
|
| 743 | 13.0% |
|
Data processing |
| 12,651 |
| 11,508 |
| 1,143 | 9.9% |
|
| 11,706 |
| 11,022 |
| 11,304 |
|
| 1,347 | 11.9% |
|
Business development and advertising |
| 5,028 |
| 4,537 |
| 491 | 10.8% |
|
| 5,395 |
| 5,059 |
| 5,468 |
|
| (440) | (8.0%) |
|
Other intangible amortization |
| 1,011 |
| 1,011 |
| - | 0.0% |
|
| 1,049 |
| 1,048 |
| 1,049 |
|
| (38) | (3.6%) |
|
Loan expense |
| 3,044 |
| 3,284 |
| (240) | (7.3%) |
|
| 3,130 |
| 3,297 |
| 2,948 |
|
| 96 | 3.3% |
|
Legal and professional fees |
| 5,483 |
| 5,345 |
| 138 | 2.6% |
|
| 8,174 |
| 7,686 |
| 5,657 |
|
| (174) | (3.1%) |
|
Losses other than loans |
| 1,799 |
| (316) |
| 2,115 | N/M |
|
| 3,071 |
| 3,577 |
| 2,060 |
|
| (261) | (12.7%) |
|
Foreclosure/OREO expense |
| 2,302 |
| 2,422 |
| (120) | (5.0%) |
|
| 3,293 |
| 4,071 |
| 4,343 |
|
| (2,041) | (47.0%) |
|
FDIC expense |
| 4,395 |
| 5,432 |
| (1,037) | (19.1%) |
|
| 4,813 |
| 5,017 |
| 4,778 |
|
| (383) | (8.0%) |
|
Other |
| 13,725 |
| 13,956 |
| (231) | (1.7%) |
|
| 13,907 |
| 13,426 |
| 14,877 |
|
| (1,152) | (7.7%) |
|
Total noninterest expense |
| 169,996 |
| 166,915 |
| 3,081 | 1.8% |
|
| 176,328 |
| 169,703 |
| 166,030 |
|
| 3,966 | 2.4% |
|
Income before income taxes |
| 70,496 |
| 68,738 |
| 1,758 | 2.6% |
|
| 60,032 |
| 66,887 |
| 64,188 |
|
| 6,308 | 9.8% |
|
Income tax expense |
| 22,608 |
| 21,350 |
| 1,258 | 5.9% |
|
| 13,404 |
| 20,492 |
| 20,871 |
|
| 1,737 | 8.3% |
|
Net income |
| 47,888 |
| 47,388 |
| 500 | 1.1% |
|
| 46,628 |
| 46,395 |
| 43,317 |
|
| 4,571 | 10.6% |
|
Preferred stock dividends and discount |
| 1,300 |
| 1,300 |
| - | 0.0% |
|
| 1,300 |
| 1,300 |
| 1,300 |
|
| - | 0.0% |
|
Net income available to common equity |
| $ 46,588 |
| $ 46,088 |
| $ 500 | 1.1% |
|
| $ 45,328 |
| $ 45,095 |
| $ 42,017 |
|
| $ 4,571 | 10.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ 0.28 |
| $ 0.27 |
| $ 0.01 | 3.7% |
|
| $ 0.26 |
| $ 0.26 |
| $ 0.24 |
|
| $ 0.04 | 16.7% |
|
Diluted |
| $ 0.28 |
| $ 0.27 |
| $ 0.01 | 3.7% |
|
| $ 0.26 |
| $ 0.26 |
| $ 0.24 |
|
| $ 0.04 | 16.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 166,605 |
| 168,234 |
| (1,629) | (1.0%) |
|
| 170,707 |
| 171,650 |
| 172,839 |
|
| (6,234) | (3.6%) |
|
Diluted |
| 166,748 |
| 168,404 |
| (1,656) | (1.0%) |
|
| 170,896 |
| 171,780 |
| 172,841 |
|
| (6,093) | (3.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Quarterly Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associated Banc-Corp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share, full time equivalent employee data and otherwise noted) | YTD 2013 |
| YTD 2012 |
| 2nd Qtr 2013 |
| 1st Qtr 2013 |
| 4th Qtr 2012 |
| 3rd Qtr 2012 |
| 2nd Qtr 2012 |
|
Summary of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income | $ 317,835 |
| $ 308,935 |
| $ 60,182 |
| $ 157,653 |
| $ 161,455 |
| $ 155,602 |
| $ 154,267 |
|
Provision for loan losses | 8,000 |
| - |
| 4,000 |
| 4,000 |
| 3,000 |
| - |
| - |
|
Asset gains (losses), net | 792 |
| (8,578) |
| (44) |
| 836 |
| (209) |
| (3,309) |
| (4,984) |
|
Investment securities gains, net | 334 |
| 603 |
| 34 |
| 300 |
| 152 |
| 3,506 |
| 563 |
|
Noninterest income (excluding securities & asset gains) | 165,184 |
| 162,372 |
| 84,320 |
| 80,864 |
| 77,962 |
| 80,791 |
| 80,372 |
|
Noninterest expense | 336,911 |
| 335,792 |
| 169,996 |
| 166,915 |
| 176,328 |
| 169,703 |
| 166,030 |
|
Income before income taxes | 139,234 |
| 127,540 |
| 70,496 |
| 68,738 |
| 60,032 |
| 66,887 |
| 64,188 |
|
Income tax expense | 43,958 |
| 41,590 |
| 22,608 |
| 21,350 |
| 13,404 |
| 20,492 |
| 20,871 |
|
Net income | 95,276 |
| 85,950 |
| 47,888 |
| 47,388 |
| 46,628 |
| 46,395 |
| 43,317 |
|
Net income available to common equity | 92,676 |
| 83,350 |
| 46,588 |
| 46,088 |
| 45,328 |
| 45,095 |
| 42,017 |
|
Taxable equivalent adjustment | 10,086 |
| 10,557 |
| 4,996 |
| 5,090 |
| 5,221 |
| 5,268 |
| 5,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic | $ 0.55 |
| $ 0.48 |
| $ 0.28 |
| $ 0.27 |
| $ 0.26 |
| $ 0.26 |
| $ 0.24 |
|
Diluted | 0.55 |
| 0.48 |
| 0.28 |
| 0.27 |
| 0.26 |
| 0.26 |
| 0.24 |
|
Dividends | 0.16 |
| 0.10 |
| 0.08 |
| 0.08 |
| 0.08 |
| 0.05 |
| 0.05 |
|
Market Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High | $ 15.69 |
| $ 14.63 |
| $ 15.69 |
| $ 15.30 |
| $ 13.54 |
| $ 13.79 |
| $ 13.97 |
|
Low | 13.46 |
| 11.43 |
| 13.81 |
| 13.46 |
| 12.19 |
| 12.04 |
| 11.76 |
|
Close | 15.55 |
| 13.19 |
| 15.55 |
| 15.19 |
| 13.12 |
| 13.16 |
| 13.19 |
|
Book value | 16.97 |
| 16.59 |
| 16.97 |
| 17.13 |
| 16.97 |
| 16.82 |
| 16.59 |
|
Tier 1 common equity / share | 11.42 |
| 10.66 |
| 11.42 |
| 11.22 |
| 11.08 |
| 10.89 |
| 10.66 |
|
Tangible book value | 11.28 |
| 11.07 |
| 11.28 |
| 11.51 |
| 11.39 |
| 11.31 |
| 11.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets yield | 3.49 | % | 3.83 | % | 3.47 | % | 3.52 | % | 3.70 | % | 3.73 | % | 3.80 | % |
Interest-bearing liabilities rate | 0.43 |
| 0.68 |
| 0.41 |
| 0.45 |
| 0.51 |
| 0.62 |
| 0.65 |
|
Net interest margin | 3.17 |
| 3.31 |
| 3.16 |
| 3.17 |
| 3.32 |
| 3.26 |
| 3.30 |
|
Return on average assets | 0.83 |
| 0.80 |
| 0.82 |
| 0.83 |
| 0.83 |
| 0.84 |
| 0.80 |
|
Return on average tangible common equity | 9.78 |
| 8.86 |
| 9.76 |
| 9.81 |
| 9.15 |
| 9.32 |
| 8.87 |
|
Return on average Tier 1 common equity (1) | 10.00 |
| 9.25 |
| 9.94 |
| 10.07 |
| 9.61 |
| 9.69 |
| 9.26 |
|
Efficiency ratio (2) | 69.64 |
| 72.57 |
| 69.54 |
| 69.74 |
| 73.71 |
| 72.81 |
| 72.30 |
|
Efficiency ratio, fully taxable equivalent (2) | 67.91 |
| 69.25 |
| 67.73 |
| 68.10 |
| 71.65 |
| 69.79 |
| 68.77 |
|
Effective tax rate | 31.57 |
| 32.61 |
| 32.07 |
| 31.06 |
| 22.33 |
| 30.64 |
| 32.52 |
|
Dividend payout ratio (3) | 29.09 | % | 20.83 | % | 28.57 | % | 29.63 | % | 30.77 | % | 19.23 | % | 20.83 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets | $23,173,203 |
| $21,671,870 |
| $23,306,220 |
| $23,038,708 |
| $22,461,886 |
| $22,016,748 |
| $21,684,600 |
|
Earning assets | 20,816,828 |
| 19,378,888 |
| 20,951,244 |
| 20,680,919 |
| 20,032,432 |
| 19,659,796 |
| 19,386,046 |
|
Interest-bearing liabilities | 15,854,444 |
| 14,921,209 |
| 15,988,021 |
| 15,719,383 |
| 14,840,162 |
| 14,940,697 |
| 14,922,006 |
|
Loans (4) | 15,588,752 |
| 14,456,522 |
| 15,727,807 |
| 15,448,152 |
| 15,131,102 |
| 14,916,793 |
| 14,602,602 |
|
Deposits | 17,125,617 |
| 15,025,625 |
| 17,105,078 |
| 17,146,384 |
| 16,650,268 |
| 15,615,856 |
| 15,050,684 |
|
Short and long-term funding | 2,917,657 |
| 3,585,023 |
| 3,074,647 |
| 2,758,923 |
| 2,638,661 |
| 3,286,943 |
| 3,566,346 |
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Common stockholders' equity | 2,853,995 |
| 2,839,482 |
| 2,857,722 |
| 2,850,227 |
| 2,915,346 |
| 2,870,438 |
| 2,852,050 |
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Stockholders' equity | 2,917,267 |
| 2,902,754 |
| 2,920,994 |
| 2,913,499 |
| 2,978,618 |
| 2,933,710 |
| 2,915,322 |
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Average Tier 1 common equity (1) | 1,868,696 |
| 1,812,684 |
| 1,880,826 |
| 1,856,431 |
| 1,876,686 |
| 1,850,610 |
| 1,825,441 |
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Reconciliation of non-GAAP financial measures |
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Efficiency ratio (2) | 69.64 | % | 72.57 | % | 69.54 | % | 69.74 | % | 73.71 | % | 72.81 | % | 72.30 | % |
Taxable equivalent adjustment | (1.43) |
| (1.62) |
| (1.39) |
| (1.46) |
| (1.57) |
| (1.61) |
| (1.62) |
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Asset gain (losses), net | 0.12 |
| (1.26) |
| (0.01) |
| 0.24 |
| (0.06) |
| (0.98) |
| (1.47) |
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Other intangible amortization | (0.42) |
| (0.44) |
| (0.41) |
| (0.42) |
| (0.43) |
| (0.43) |
| (0.44) |
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Efficiency ratio, fully taxable equivalent (2) | 67.91 | % | 69.25 | % | 67.73 | % | 68.10 | % | 71.65 | % | 69.79 | % | 68.77 | % |
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Selected Quarterly Information (continued) |
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Associated Banc-Corp |
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(in thousands, except per share, full time equivalent employee data and otherwise noted) |
| 2nd Qtr 2013 |
| 1st Qtr 2013 |
| 4th Qtr 2012 |
| 3rd Qtr 2012 |
| 2nd Qtr 2012 |
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At Period End |
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Assets |
| $23,616,944 |
| $23,277,768 |
| $23,487,735 |
| $22,738,354 |
| $22,081,100 |
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Loans |
| 15,746,599 |
| 15,551,562 |
| 15,411,022 |
| 14,966,214 |
| 14,698,902 |
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Allowance for loan losses |
| 277,218 |
| 286,923 |
| 297,409 |
| 315,150 |
| 332,658 |
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Goodwill |
| 929,168 |
| 929,168 |
| 929,168 |
| 929,168 |
| 929,168 |
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Mortgage servicing rights, net |
| 61,407 |
| 52,078 |
| 45,949 |
| 45,018 |
| 47,488 |
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Other intangible assets, net |
| 13,205 |
| 14,216 |
| 15,227 |
| 16,276 |
| 17,324 |
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Deposits |
| 17,132,436 |
| 17,421,294 |
| 16,939,865 |
| 16,450,592 |
| 15,106,871 |
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Loans / deposits |
| 91.91% |
| 89.27% |
| 90.97% |
| 90.98% |
| 97.30% |
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Risk weighted assets ($ in millions) (5) (7) |
| 16,504 |
| 16,163 |
| 16,149 |
| 15,575 |
| 15,188 |
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Tier 1 common equity (1) |
| 1,893,875 |
| 1,881,410 |
| 1,875,534 |
| 1,869,931 |
| 1,828,529 |
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Stockholders' equity / assets |
| 12.18% |
| 12.61% |
| 12.50% |
| 12.98% |
| 13.18% |
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Tangible common equity / tangible assets (6) |
| 8.25% |
| 8.64% |
| 8.56% |
| 8.91% |
| 8.99% |
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Tangible equity / tangible assets (6) |
| 8.53% |
| 8.92% |
| 8.84% |
| 9.20% |
| 9.29% |
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Tier 1 common equity / risk-weighted assets (5) (7) |
| 11.48% |
| 11.64% |
| 11.61% |
| 12.01% |
| 12.04% |
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Tier 1 leverage ratio (5) (7) |
| 8.73% |
| 8.78% |
| 8.98% |
| 9.99% |
| 9.95% |
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Tier 1 risk-based capital ratio (5) (7) |
| 11.86% |
| 12.03% |
| 12.01% |
| 13.57% |
| 13.64% |
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Total risk-based capital ratio (5) (7) |
| 13.27% |
| 13.45% |
| 13.42% |
| 15.00% |
| 15.08% |
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Shares outstanding, end of period |
| 165,837 |
| 167,673 |
| 169,304 |
| 171,657 |
| 171,611 |
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Selected trend information |
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Average full time equivalent employees |
| 4,790 |
| 4,841 |
| 4,915 |
| 4,965 |
| 4,951 |
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Trust assets under management, at market value ($ in millions) |
| $ 6,894 |
| $ 6,913 |
| $ 6,454 |
| $ 6,163 |
| $ 5,934 |
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Mortgage loans originated for sale during period |
| 782,398 |
| 681,410 |
| 780,469 |
| 715,184 |
| 738,091 |
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Mortgage portfolio serviced for others ($ in millions) |
| 7,794 |
| 7,585 |
| 7,453 |
| 7,547 |
| 7,511 |
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Mortgage servicing rights, net / Portfolio serviced for others |
| 0.79% |
| 0.69% |
| 0.62% |
| 0.60% |
| 0.63% |
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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 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 enchances 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) Loans held for sale have been included in the average balances. |
(5) June 30, 2013 data is estimated. |
(6) 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. |
(7) The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes simliar 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. |
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Selected Asset Quality Information |
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Associated Banc-Corp |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
(in thousands) |
| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Allowance for Loan Losses |
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Beginning balance |
| $ 286,923 | $ 297,409 | (3.5%) |
| $ 315,150 | $ 332,658 | $ 356,298 | (19.5%) |
Provision for loan losses |
| 4,000 | 4,000 | N/M |
| 3,000 | - | - | N/M |
Charge offs |
| (21,904) | (27,128) | (19.3%) |
| (30,417) | (25,030) | (30,340) | (27.8%) |
Recoveries |
| 8,199 | 12,642 | (35.1%) |
| 9,676 | 7,522 | 6,700 | 22.4% |
Net charge offs |
| (13,705) | (14,486) | (5.4%) |
| (20,741) | (17,508) | (23,640) | (42.0%) |
Ending balance |
| $ 277,218 | $ 286,923 | (3.4%) |
| $ 297,409 | $ 315,150 | $ 332,658 | (16.7%) |
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Reserve for losses on unfunded commitments |
| $ 22,400 | $ 21,100 | 6.2% |
| $ 21,800 | $ 19,800 | $ 18,900 | 18.5% |
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Net Charge Offs |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
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| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Commercial and industrial |
| $ 1,477 | $ 696 | 112.2% |
| $ 2,630 | $ 3,831 | $ 14,544 | (89.8%) |
Commercial real estate - owner occupied |
| 1,574 | 1,518 | 3.7% |
| 2,056 | (8) | 1,164 | 35.2% |
Lease financing |
| 16 | (12) | (233.3%) |
| 754 | (20) | - | N/M |
Commercial and business lending |
| 3,067 | 2,202 | 39.3% |
| 5,440 | 3,803 | 15,708 | (80.5%) |
Commercial real estate - investor |
| 2,999 | 163 | N/M |
| (232) | 1,905 | 177 | N/M |
Real estate construction |
| (95) | 1,392 | (106.8%) |
| 858 | (187) | 558 | (117.0%) |
Commercial real estate lending |
| 2,904 | 1,555 | 86.8% |
| 626 | 1,718 | 735 | 295.1% |
Total commercial |
| 5,971 | 3,757 | 58.9% |
| 6,066 | 5,521 | 16,443 | (63.7%) |
Home equity revolving lines of credit |
| 2,512 | 3,615 | (30.5%) |
| 3,590 | 4,180 | 2,637 | (4.7%) |
Home equity loans 1st liens |
| 954 | 765 | 24.7% |
| 1,060 | 1,056 | 778 | 22.6% |
Home equity loans junior liens |
| 2,034 | 1,957 | 3.9% |
| 3,421 | 2,686 | 1,869 | 8.8% |
Home equity |
| 5,500 | 6,337 | (13.2%) |
| 8,071 | 7,922 | 5,284 | 4.1% |
Installment |
| 66 | 177 | (62.7%) |
| 1,027 | 324 | 371 | (82.2%) |
Residential mortgage |
| 2,168 | 4,215 | (48.6%) |
| 5,577 | 3,741 | 1,542 | 40.6% |
Total consumer |
| 7,734 | 10,729 | (27.9%) |
| 14,675 | 11,987 | 7,197 | 7.5% |
Total net charge offs |
| $ 13,705 | $ 14,486 | (5.4%) |
| $ 20,741 | $ 17,508 | $ 23,640 | (42.0%) |
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Net Charge Offs to Average Loans (in basis points) * |
| Jun 30, 2013 | Mar 31, 2013 |
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| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 |
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Commercial and industrial |
| 13 | 6 |
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| 25 | 37 | 151 |
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Commercial real estate - owner occupied |
| 54 | 51 |
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| 69 | (0) | 43 |
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Lease financing |
| 12 | (8) |
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| 480 | (13) | - |
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Commercial and business lending |
| 21 | 16 |
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| 40 | 29 | 126 |
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Commercial real estate - investor |
| 41 | 2 |
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| (3) | 27 | 3 |
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Real estate construction |
| (5) | 82 |
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| 54 | (12) | 40 |
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Commercial real estate lending |
| 31 | 18 |
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| 7 | 20 | 9 |
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Total commercial |
| 25 | 17 |
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| 27 | 25 | 79 |
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Home equity revolving lines of credit |
| 112 | 159 |
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| 148 | 167 | 104 |
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Home equity loans 1st liens |
| 42 | 32 |
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| 40 | 38 | 28 |
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Home equity loans junior liens |
| 336 | 303 |
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| 486 | 361 | 240 |
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Home equity |
| 108 | 119 |
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| 140 | 132 | 86 |
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Installment |
| 6 | 16 |
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| 86 | 26 | 28 |
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Residential mortgage |
| 24 | 47 |
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| 64 | 45 | 19 |
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Total consumer |
| 50 | 70 |
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| 93 | 77 | 46 |
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Total net charge offs |
| 35 | 38 |
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| 55 | 47 | 65 |
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Credit Quality |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
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| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Nonaccrual loans |
| $ 217,493 | $ 225,436 | (3.5%) |
| $ 252,868 | $ 278,172 | $ 317,872 | (31.6%) |
Other real estate owned (OREO) |
| 27,407 | 35,156 | (22.0%) |
| 34,900 | 36,053 | 40,029 | (31.5%) |
Total nonperforming assets |
| $ 244,900 | $ 260,592 | (6.0%) |
| $ 287,768 | $ 314,225 | $ 357,901 | (31.6%) |
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Loans 90 or more days past due and still accruing |
| 1,548 | 5,690 | (72.8%) |
| 2,289 | 2,334 | 5,224 | (70.4%) |
Restructured loans (accruing) |
| 119,066 | 120,093 | (0.9%) |
| 121,087 | 135,791 | 122,229 | (2.6%) |
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Allowance for loan losses / loans |
| 1.76% | 1.84% |
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| 1.93% | 2.11% | 2.26% |
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Allowance for loan losses / nonaccrual loans |
| 127.46 | 127.27 |
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| 117.61 | 113.29 | 104.65 |
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Nonaccrual loans / total loans |
| 1.38 | 1.45 |
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| 1.64 | 1.86 | 2.16 |
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Nonperforming assets / total loans plus OREO |
| 1.55 | 1.67 |
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| 1.86 | 2.09 | 2.43 |
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Nonperforming assets / total assets |
| 1.04 | 1.12 |
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| 1.23 | 1.38 | 1.62 |
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Net charge offs / average loans (annualized) |
| 0.35 | 0.38 |
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| 0.55 | 0.47 | 0.65 |
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Year-to-date net charge offs / average loans |
| 0.36 | 0.38 |
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| 0.57 | 0.58 | 0.63 |
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Nonaccrual loans by type: |
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Commercial and industrial |
| $ 30,302 | $ 33,242 | (8.8%) |
| $ 39,182 | $ 41,694 | $ 46,111 | (34.3%) |
Commercial real estate - owner occupied |
| 24,003 | 23,199 | 3.5% |
| 24,254 | 27,161 | 33,417 | (28.2%) |
Lease financing |
| 72 | 2,165 | (96.7%) |
| 3,031 | 5,927 | 8,260 | (99.1%) |
Commercial and business lending |
| 54,377 | 58,606 | (7.2%) |
| 66,467 | 74,782 | 87,788 | (38.1%) |
Commercial real estate - investor |
| 60,780 | 56,776 | 7.1% |
| 58,687 | 71,522 | 88,806 | (31.6%) |
Real estate construction |
| 21,419 | 22,166 | (3.4%) |
| 27,302 | 31,684 | 36,403 | (41.2%) |
Commercial real estate lending |
| 82,199 | 78,942 | 4.1% |
| 85,989 | 103,206 | 125,209 | (34.4%) |
Total commercial |
| 136,576 | 137,548 | (0.7%) |
| 152,456 | 177,988 | 212,997 | (35.9%) |
Home equity revolving lines of credit |
| 12,940 | 15,914 | (18.7%) |
| 20,446 | 19,242 | 22,651 | (42.9%) |
Home equity loans 1st liens |
| 7,898 | 8,626 | (8.4%) |
| 8,717 | 9,425 | 7,870 | 0.4% |
Home equity loans junior liens |
| 7,296 | 9,405 | (22.4%) |
| 10,052 | 9,800 | 11,015 | (33.8%) |
Home equity |
| 28,134 | 33,945 | (17.1%) |
| 39,215 | 38,467 | 41,536 | (32.3%) |
Installment |
| 1,533 | 1,762 | (13.0%) |
| 1,838 | 2,893 | 3,047 | (49.7%) |
Residential mortgage |
| 51,250 | 52,181 | (1.8%) |
| 59,359 | 58,824 | 60,292 | (15.0%) |
Total consumer |
| 80,917 | 87,888 | (7.9%) |
| 100,412 | 100,184 | 104,875 | (22.8%) |
Total nonaccrual loans |
| $ 217,493 | $ 225,436 | (3.5%) |
| $ 252,868 | $ 278,172 | $ 317,872 | (31.6%) |
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* Annualized. |
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N/M = Not meaningful. |
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Selected Asset Quality Information (continued) |
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Associated Banc-Corp |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
(in thousands) |
| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Restructured loans (accruing) |
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Commercial and industrial |
| $ 30,970 | $ 29,251 | 5.9% |
| $ 28,140 | $ 35,015 | $ 28,399 | 9.1% |
Commercial real estate - owner occupied |
| 14,336 | 12,888 | 11.2% |
| 13,852 | 15,706 | 7,115 | 101.5% |
Lease financing |
| - | - | N/M |
| - | - | - | N/M |
Commercial and business lending |
| 45,306 | 42,139 | 7.5% |
| 41,992 | 50,721 | 35,514 | 27.6% |
Commercial real estate - investor |
| 37,299 | 41,253 | (9.6%) |
| 41,660 | 49,249 | 49,325 | (24.4%) |
Real estate construction |
| 5,365 | 5,540 | (3.2%) |
| 4,530 | 3,561 | 5,838 | (8.1%) |
Commercial real estate lending |
| 42,664 | 46,793 | (8.8%) |
| 46,190 | 52,810 | 55,163 | (22.7%) |
Total commercial |
| 87,970 | 88,932 | (1.1%) |
| 88,182 | 103,531 | 90,677 | (3.0%) |
Home equity revolving lines of credit |
| 1,130 | 880 | 28.4% |
| 867 | 803 | 759 | 48.9% |
Home equity loans 1st liens |
| 1,684 | 1,783 | (5.6%) |
| 1,930 | 1,904 | 2,182 | (22.8%) |
Home equity loans junior liens |
| 7,119 | 6,893 | 3.3% |
| 7,171 | 6,760 | 6,530 | 9.0% |
Home equity |
| 9,933 | 9,556 | 3.9% |
| 9,968 | 9,467 | 9,471 | 4.9% |
Installment |
| 570 | 664 | (14.2%) |
| 653 | 672 | 779 | (26.8%) |
Residential mortgage |
| 20,593 | 20,941 | (1.7%) |
| 22,284 | 22,121 | 21,302 | (3.3%) |
Total consumer |
| 31,096 | 31,161 | (0.2%) |
| 32,905 | 32,260 | 31,552 | (1.4%) |
Total restructured loans (accruing) |
| $ 119,066 | $ 120,093 | (0.9%) |
| $ 121,087 | $ 135,791 | $ 122,229 | (2.6%) |
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Restructured loans in nonaccrual loans (not included above) |
| $ 70,354 | $ 67,811 | 3.8% |
| $ 80,590 | $ 74,251 | $ 86,395 | (18.6%) |
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Loans Past Due 30-89 Days |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
|
| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Commercial and industrial |
| $ 8,516 | $ 10,263 | (17.0%) |
| $ 11,339 | $ 3,795 | $ 4,465 | 90.7% |
Commercial real estate - owner occupied |
| 8,105 | 6,804 | 19.1% |
| 11,053 | 4,843 | 2,125 | 281.4% |
Lease financing |
| 57 | 283 | (79.9%) |
| 12 | 17 | 39 | 46.2% |
Commercial and business lending |
| 16,678 | 17,350 | (3.9%) |
| 22,404 | 8,655 | 6,629 | 151.6% |
Commercial real estate - investor |
| 18,269 | 25,201 | (27.5%) |
| 13,472 | 8,809 | 12,854 | 42.1% |
Real estate construction |
| 797 | 2,287 | (65.2%) |
| 3,155 | 1,254 | 1,618 | (50.7%) |
Commercial real estate lending |
| 19,066 | 27,488 | (30.6%) |
| 16,627 | 10,063 | 14,472 | 31.7% |
Total commercial |
| 35,744 | 44,838 | (20.3%) |
| 39,031 | 18,718 | 21,101 | 69.4% |
Home equity revolving lines of credit |
| 7,739 | 1,832 | 322.4% |
| 7,829 | 9,543 | 7,298 | 6.0% |
Home equity loans 1st liens |
| 1,857 | 1,869 | (0.6%) |
| 1,457 | 1,535 | 3,906 | (52.5%) |
Home equity loans junior liens |
| 2,709 | 2,848 | (4.9%) |
| 4,252 | 3,745 | 4,098 | (33.9%) |
Home equity |
| 12,305 | 6,549 | 87.9% |
| 13,538 | 14,823 | 15,302 | (19.6%) |
Installment |
| 1,434 | 2,500 | (42.6%) |
| 2,109 | 1,693 | 1,558 | (8.0%) |
Residential mortgage |
| 9,920 | 8,793 | 12.8% |
| 9,403 | 6,878 | 9,836 | 0.9% |
Total consumer |
| 23,659 | 17,842 | 32.6% |
| 25,050 | 23,394 | 26,696 | (11.4%) |
Total loans past due 30-89 days |
| $ 59,403 | $ 62,680 | (5.2%) |
| $ 64,081 | $ 42,112 | $ 47,797 | 24.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potential Problem Loans |
|
|
| Jun13 vs Mar13 |
|
|
|
| Jun13 vs Jun12 |
|
| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Commercial and industrial |
| $ 127,382 | $ 127,367 | 0.0% |
| $ 128,434 | $ 120,888 | $ 121,764 | 4.6% |
Commercial real estate - owner occupied |
| 75,074 | 93,098 | (19.4%) |
| 99,592 | 120,034 | 108,508 | (30.8%) |
Lease financing |
| 279 | 251 | 11.2% |
| 264 | 214 | 324 | (13.9%) |
Commercial and business lending |
| 202,735 | 220,716 | (8.1%) |
| 228,290 | 241,136 | 230,596 | (12.1%) |
Commercial real estate - investor |
| 89,342 | 101,775 | (12.2%) |
| 107,068 | 133,046 | 142,453 | (37.3%) |
Real estate construction |
| 9,184 | 10,040 | (8.5%) |
| 13,092 | 18,477 | 23,905 | (61.6%) |
Commercial real estate lending |
| 98,526 | 111,815 | (11.9%) |
| 120,160 | 151,523 | 166,358 | (40.8%) |
Total commercial |
| 301,261 | 332,531 | (9.4%) |
| 348,450 | 392,659 | 396,954 | (24.1%) |
Home equity revolving lines of credit |
| 308 | 450 | (31.6%) |
| 520 | 518 | 919 | (66.5%) |
Home equity loans 1st liens |
| - | - | 0.0% |
| - | - | - | 0.0% |
Home equity loans junior liens |
| 2,307 | 2,871 | (19.6%) |
| 3,150 | 2,825 | 3,254 | (29.1%) |
Home equity |
| 2,615 | 3,321 | (21.3%) |
| 3,670 | 3,343 | 4,173 | (37.3%) |
Installment |
| 83 | 99 | (16.2%) |
| 111 | 131 | 127 | (34.6%) |
Residential mortgage |
| 5,917 | 7,882 | (24.9%) |
| 8,762 | 8,197 | 8,658 | (31.7%) |
Total consumer |
| 8,615 | 11,302 | (23.8%) |
| 12,543 | 11,671 | 12,958 | (33.5%) |
Total potential problem loans |
| $ 309,876 | $ 343,833 | (9.9%) |
| $ 360,993 | $ 404,330 | $ 409,912 | (24.4%) |
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful. |
|
|
|
|
|
|
|
|
|
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|
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|
|
|
Net Interest Income Analysis - Taxable Equivalent Basis |
|
|
|
|
|
|
|
|
|
|
Associated Banc-Corp |
| Three months ended June 30, 2013 |
| Three months ended March 31, 2013 |
|
|
|
| Average | Interest | Average |
| Average | Interest | Average |
|
|
(in thousands) |
| Balance | Income / Expense | Yield / Rate |
| Balance | Income / Expense | Yield / Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans: (1) (2) (3) |
|
|
|
|
|
|
|
|
|
|
Commercial and business lending |
| $ 5,860,416 | $ 53,613 | 3.67% |
| $ 5,615,036 | $ 50,712 | 3.66% |
|
|
Commercial real estate lending |
| 3,722,108 | 35,804 | 3.86 |
| 3,592,509 | 35,864 | 4.04 |
|
|
Total commercial |
| 9,582,524 | 89,417 | 3.74 |
| $ 9,207,545 | $ 86,576 | 3.81 |
|
|
Residential mortgage |
| 3,661,742 | 30,113 | 3.29 |
| 3,622,455 | 30,481 | 3.37 |
|
|
Retail |
| 2,483,541 | 28,291 | 4.56 |
| 2,618,152 | 29,381 | 4.53 |
|
|
Total loans |
| 15,727,807 | 147,821 | 3.77 |
| 15,448,152 | 146,438 | 3.83 |
|
|
Investment securities |
| 4,917,671 | 32,303 | 2.63 |
| 4,891,714 | 32,757 | 2.68 |
|
|
Other short-term investments |
| 305,766 | 1,232 | 1.61 |
| 341,053 | 1,247 | 1.47 |
|
|
Investments and other |
| 5,223,437 | 33,535 | 2.57 |
| 5,232,767 | 34,004 | 2.60 |
|
|
Total earning assets |
| 20,951,244 | 181,356 | 3.47 |
| 20,680,919 | 180,442 | 3.52 |
|
|
Other assets, net |
| 2,354,976 |
|
|
| 2,357,789 |
|
|
|
|
Total assets |
| $ 23,306,220 |
|
|
| $ 23,038,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Savings deposits |
| $ 1,207,959 | $ 236 | 0.08% |
| $ 1,141,781 | $ 208 | 0.07% |
|
|
Interest-bearing demand deposits |
| 2,867,524 | 1,190 | 0.17 |
| 2,779,929 | 1,179 | 0.17 |
|
|
Money market deposits |
| 6,930,554 | 3,239 | 0.19 |
| 7,044,344 | 3,615 | 0.21 |
|
|
Time deposits |
| 1,907,337 | 3,104 | 0.65 |
| 1,994,406 | 3,539 | 0.72 |
|
|
Total interest-bearing deposits |
| 12,913,374 | 7,769 | 0.24 |
| 12,960,460 | 8,541 | 0.27 |
|
|
Federal funds purchased and securities sold under |
|
|
|
|
|
|
|
|
|
|
agreements to repurchase |
| 677,489 | 333 | 0.20 |
| 779,550 | 410 | 0.21 |
|
|
Other short-term funding |
| 1,631,644 | 525 | 0.13 |
| 1,018,553 | 332 | 0.13 |
|
|
Long-term funding |
| 765,514 | 7,551 | 3.95 |
| 960,820 | 8,416 | 3.51 |
|
|
Total short and long-term funding |
| 3,074,647 | 8,409 | 1.09 |
| 2,758,923 | 9,158 | 1.33 |
|
|
Total interest-bearing liabilities |
| 15,988,021 | 16,178 | 0.41 |
| 15,719,383 | 17,699 | 0.45 |
|
|
Noninterest-bearing demand deposits |
| 4,191,704 |
|
|
| 4,185,924 |
|
|
|
|
Other liabilities |
| 205,501 |
|
|
| 219,902 |
|
|
|
|
Stockholders' equity |
| 2,920,994 |
|
|
| 2,913,499 |
|
|
|
|
Total liabilities and stockholders' equity |
| $ 23,306,220 |
|
|
| $ 23,038,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and rate spread (1) |
|
| $ 165,178 | 3.06% |
|
| $ 162,743 | 3.07% |
|
|
Net interest margin (1) |
|
|
| 3.16% |
|
|
| 3.17% |
|
|
Taxable equivalent adjustment |
|
| $ 4,996 |
|
|
| $ 5,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income Analysis - Taxable Equivalent Basis |
|
|
|
|
|
|
|
|
|
|
Associated Banc-Corp |
| Three months ended June 30, 2013 |
| Three months ended June 30, 2012 |
|
|
|
| Average | Interest | Average |
| Average | Interest | Average |
|
|
(in thousands) |
| Balance | Income / Expense | Yield / Rate |
| Balance | Income / Expense | Yield / Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans: (1) (2) (3) |
|
|
|
|
|
|
|
|
|
|
Commercial and business lending |
| $ 5,860,416 | $ 53,613 | 3.67% |
| $ 5,016,701 | $ 48,584 | 3.89% |
|
|
Commercial real estate lending |
| 3,722,108 | 35,804 | 3.86 |
| 3,320,186 | 34,843 | 4.22 |
|
|
Total commercial |
| 9,582,524 | 89,417 | 3.74 |
| $ 8,336,887 | $ 83,427 | 4.02 |
|
|
Residential mortgage |
| 3,661,742 | 30,113 | 3.29 |
| 3,273,873 | 30,266 | 3.70 |
|
|
Retail |
| 2,483,541 | 28,291 | 4.56 |
| 2,991,842 | 34,468 | 4.63 |
|
|
Total loans |
| 15,727,807 | 147,821 | 3.77 |
| 14,602,602 | 148,161 | 4.07 |
|
|
Investment securities |
| 4,917,671 | 32,303 | 2.63 |
| 4,402,800 | 34,416 | 3.13 |
|
|
Other short-term investments |
| 305,766 | 1,232 | 1.61 |
| 380,644 | 1,262 | 1.33 |
|
|
Investments and other |
| 5,223,437 | 33,535 | 2.57 |
| 4,783,444 | 35,678 | 2.98 |
|
|
Total earning assets |
| 20,951,244 | 181,356 | 3.47 |
| 19,386,046 | 183,839 | 3.80 |
|
|
Other assets, net |
| 2,354,976 |
|
|
| 2,298,554 |
|
|
|
|
Total assets |
| $ 23,306,220 |
|
|
| $ 21,684,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Savings deposits |
| $ 1,207,959 | $ 236 | 0.08% |
| $ 1,109,609 | $ 211 | 0.08% |
|
|
Interest-bearing demand deposits |
| 2,867,524 | 1,190 | 0.17 |
| 2,105,440 | 917 | 0.18 |
|
|
Money market deposits |
| 6,930,554 | 3,239 | 0.19 |
| 5,860,043 | 3,744 | 0.26 |
|
|
Time deposits |
| 1,907,337 | 3,104 | 0.65 |
| 2,280,568 | 5,681 | 1.00 |
|
|
Total interest-bearing deposits |
| 12,913,374 | 7,769 | 0.24 |
| 11,355,660 | 10,553 | 0.37 |
|
|
Federal funds purchased and securities sold under |
|
|
|
|
|
|
|
|
|
|
agreements to repurchase |
| 677,489 | 333 | 0.20 |
| 1,114,964 | 612 | 0.22 |
|
|
Other short-term funding |
| 1,631,644 | 525 | 0.13 |
| 1,279,319 | 1,197 | 0.38 |
|
|
Long-term funding |
| 765,514 | 7,551 | 3.95 |
| 1,172,063 | 11,956 | 4.08 |
|
|
Total short and long-term funding |
| 3,074,647 | 8,409 | 1.09 |
| 3,566,346 | 13,765 | 1.55 |
|
|
Total interest-bearing liabilities |
| 15,988,021 | 16,178 | 0.41 |
| 14,922,006 | 24,318 | 0.65 |
|
|
Noninterest-bearing demand deposits |
| 4,191,704 |
|
|
| 3,695,024 |
|
|
|
|
Other liabilities |
| 205,501 |
|
|
| 152,248 |
|
|
|
|
Stockholders' equity |
| 2,920,994 |
|
|
| 2,915,322 |
|
|
|
|
Total liabilities and stockholders' equity |
| $ 23,306,220 |
|
|
| $ 21,684,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and rate spread (1) |
|
| $ 165,178 | 3.06% |
|
| $ 159,521 | 3.15% |
|
|
Net interest margin (1) |
|
|
| 3.16% |
|
|
| 3.30% |
|
|
Taxable equivalent adjustment |
|
| $ 4,996 |
|
|
| $ 5,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income Analysis - Taxable Equivalent Basis |
|
|
|
|
|
|
|
|
|
|
Associated Banc-Corp |
| Six months ended June 30, 2013 |
| Six months ended June 30, 2012 |
|
|
|
| Average | Interest | Average |
| Average | Interest | Average |
|
|
(in thousands) |
| Balance | Income / Expense | Yield / Rate |
| Balance | Income / Expense | Yield / Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans: (1) (2) (3) |
|
|
|
|
|
|
|
|
|
|
Commercial and business lending |
| $ 5,738,404 | $ 104,325 | 3.66% |
| $ 4,922,827 | $ 97,569 | 3.98% |
|
|
Commercial real estate lending |
| 3,657,667 | 71,668 | 3.95 |
| 3,253,668 | 69,345 | 4.28 |
|
|
Total commercial |
| 9,396,071 | 175,993 | 3.77 |
| $ 8,176,495 | $ 166,914 | 4.10 |
|
|
Residential mortgage |
| 3,642,207 | 60,595 | 3.33 |
| 3,256,480 | 61,230 | 3.76 |
|
|
Retail |
| 2,550,474 | 57,672 | 4.55 |
| 3,023,547 | 69,979 | 4.65 |
|
|
Total loans |
| 15,588,752 | 294,260 | 3.80 |
| 14,456,522 | 298,123 | 4.14 |
|
|
Investment securities |
| 4,904,764 | 65,058 | 2.65 |
| 4,507,200 | 69,083 | 3.07 |
|
|
Other short-term investments |
| 323,312 | 2,480 | 1.54 |
| 415,166 | 2,509 | 1.21 |
|
|
Investments and other |
| 5,228,076 | 67,538 | 2.58 |
| 4,922,366 | 71,592 | 2.91 |
|
|
Total earning assets |
| 20,816,828 | 361,798 | 3.49 |
| 19,378,888 | 369,715 | 3.83 |
|
|
Other assets, net |
| 2,356,375 |
|
|
| 2,292,982 |
|
|
|
|
Total assets |
| $ 23,173,203 |
|
|
| $ 21,671,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Savings deposits |
| $ 1,175,053 | $ 444 | 0.08% |
| $ 1,069,499 | $ 396 | 0.07% |
|
|
Interest-bearing demand deposits |
| 2,823,969 | 2,369 | 0.17 |
| 2,109,947 | 1,861 | 0.18 |
|
|
Money market deposits |
| 6,987,134 | 6,854 | 0.20 |
| 5,774,305 | 7,302 | 0.25 |
|
|
Time deposits |
| 1,950,631 | 6,643 | 0.69 |
| 2,382,435 | 13,030 | 1.10 |
|
|
Total interest-bearing deposits |
| 12,936,787 | 16,310 | 0.25 |
| 11,336,186 | 22,589 | 0.40 |
|
|
Federal funds purchased and securities sold under |
|
|
|
|
|
|
|
|
|
|
agreements to repurchase |
| 728,238 | 743 | 0.21 |
| 1,228,842 | 1,379 | 0.23 |
|
|
Other short-term funding |
| 1,326,792 | 857 | 0.13 |
| 1,181,692 | 2,253 | 0.38 |
|
|
Long-term funding |
| 862,627 | 15,967 | 3.71 |
| 1,174,489 | 24,002 | 4.09 |
|
|
Total short and long-term funding |
| 2,917,657 | 17,567 | 1.21 |
| 3,585,023 | 27,634 | 1.54 |
|
|
Total interest-bearing liabilities |
| 15,854,444 | 33,877 | 0.43 |
| 14,921,209 | 50,223 | 0.68 |
|
|
Noninterest-bearing demand deposits |
| 4,188,830 |
|
|
| 3,689,439 |
|
|
|
|
Other liabilities |
| 212,662 |
|
|
| 158,468 |
|
|
|
|
Stockholders' equity |
| 2,917,267 |
|
|
| 2,902,754 |
|
|
|
|
Total liabilities and stockholders' equity |
| $ 23,173,203 |
|
|
| $ 21,671,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and rate spread (1) |
|
| $ 327,921 | 3.06% |
|
| $ 319,492 | 3.15% |
|
|
Net interest margin (1) |
|
|
| 3.17% |
|
|
| 3.31% |
|
|
Taxable equivalent adjustment |
|
| $ 10,086 |
|
|
| $ 10,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
Financial Summary and Comparison |
|
|
|
|
|
|
|
|
|
Associated Banc-Corp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Loan Composition |
|
|
| Jun13 vs Mar13 |
|
|
|
| Jun13 vs Jun12 |
|
| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Commercial and industrial |
| $ 4,752,838 | $ 4,651,143 | 2.2% |
| $ 4,502,021 | $ 4,265,356 | $ 4,076,370 | 16.6% |
Commercial real estate - owner occupied |
| 1,174,866 | 1,199,513 | (2.1%) |
| 1,219,747 | 1,197,517 | 1,116,815 | 5.2% |
Lease financing |
| 55,084 | 57,908 | (4.9%) |
| 64,196 | 60,818 | 62,750 | (12.2%) |
Commercial and business lending |
| 5,982,788 | 5,908,564 | 1.3% |
| 5,785,964 | 5,523,691 | 5,255,935 | 13.8% |
Commercial real estate - investor |
| 3,010,992 | 2,900,167 | 3.8% |
| 2,906,759 | 2,787,158 | 2,810,521 | 7.1% |
Real estate - construction |
| 800,569 | 729,145 | 9.8% |
| 655,381 | 611,186 | 612,556 | 30.7% |
Commercial real estate lending |
| 3,811,561 | 3,629,312 | 5.0% |
| 3,562,140 | 3,398,344 | 3,423,077 | 11.3% |
Total commercial |
| 9,794,349 | 9,537,876 | 2.7% |
| 9,348,104 | 8,922,035 | 8,679,012 | 12.9% |
Home equity revolving lines of credit |
| 888,162 | 904,187 | (1.8%) |
| 936,065 | 988,800 | 1,009,634 | (12.0%) |
Home equity loans 1st liens |
| 863,779 | 940,017 | (8.1%) |
| 1,013,757 | 1,079,075 | 1,116,093 | (22.6%) |
Home equity loans junior liens |
| 234,292 | 254,203 | (7.8%) |
| 269,672 | 289,025 | 303,867 | (22.9%) |
Home equity |
| 1,986,233 | 2,098,407 | (5.3%) |
| 2,219,494 | 2,356,900 | 2,429,594 | (18.2%) |
Installment |
| 434,029 | 447,445 | (3.0%) |
| 466,727 | 482,451 | 510,831 | (15.0%) |
Residential mortgage |
| 3,531,988 | 3,467,834 | 1.8% |
| 3,376,697 | 3,204,828 | 3,079,465 | 14.7% |
Total consumer |
| 5,952,250 | 6,013,686 | (1.0%) |
| 6,062,918 | 6,044,179 | 6,019,890 | (1.1%) |
Total loans |
| $ 15,746,599 | $ 15,551,562 | 1.3% |
| $ 15,411,022 | $ 14,966,214 | $ 14,698,902 | 7.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Deposit and Customer Funding Composition |
|
|
| Jun13 vs Mar13 |
|
|
|
| Jun13 vs Jun12 |
|
| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Noninterest-bearing demand |
| $ 4,259,776 | $ 4,453,109 | (4.3%) |
| $ 4,759,556 | $ 4,320,437 | $ 3,874,429 | 9.9% |
Savings |
| 1,211,567 | 1,197,134 | 1.2% |
| 1,109,861 | 1,115,783 | 1,117,593 | 8.4% |
Interest-bearing demand |
| 2,802,277 | 2,966,934 | (5.5%) |
| 2,554,479 | 2,230,740 | 2,078,037 | 34.9% |
Money market |
| 7,040,317 | 6,836,678 | 3.0% |
| 6,518,075 | 6,682,640 | 5,822,449 | 20.9% |
Brokered CDs |
| 59,206 | 49,919 | 18.6% |
| 26,270 | 33,612 | 41,104 | 44.0% |
Other time |
| 1,759,293 | 1,917,520 | (8.3%) |
| 1,971,624 | 2,067,380 | 2,173,259 | (19.0%) |
Total deposits |
| 17,132,436 | 17,421,294 | (1.7%) |
| 16,939,865 | 16,450,592 | 15,106,871 | 13.4% |
Customer repo sweeps |
| 489,700 | 617,038 | (20.6%) |
| 564,038 | 600,225 | 592,203 | (17.3%) |
Customer repo term |
| - | 4,882 | (100.0%) |
| 115,032 | 448,782 | 619,897 | (100.0%) |
Total customer funding |
| 489,700 | 621,920 | (21.3%) |
| 679,070 | 1,049,007 | 1,212,100 | (59.6%) |
Total deposits and customer funding |
| $ 17,622,136 | $ 18,043,214 | (2.3%) |
| $ 17,618,935 | $ 17,499,599 | $ 16,318,971 | 8.0% |
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Network transaction deposits included above in |
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interest-bearing demand and money market |
| 2,135,306 | 2,054,714 | 3.9% |
| 1,684,745 | 1,740,434 | 1,234,010 | 73.0% |
Brokered CDs |
| 59,206 | 49,919 | 18.6% |
| 26,270 | 33,612 | 41,104 | 44.0% |
Total network and brokered funding |
| 2,194,512 | 2,104,633 | 4.3% |
| 1,711,015 | 1,774,046 | 1,275,114 | 72.1% |
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Net customer deposits and funding (1) |
| 15,427,624 | 15,938,581 | (3.2%) |
| 15,907,920 | 15,725,553 | 15,043,857 | 2.6% |
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(1) Total deposits and customer funding excluding total network and brokered funding. |
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Average Loan Composition |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
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| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Commercial and industrial |
| $ 4,635,892 | $ 4,358,486 | 6.4% |
| $ 4,182,852 | $ 4,110,122 | $ 3,862,439 | 20.0% |
Commercial real estate - owner occupied |
| 1,169,124 | 1,196,912 | (2.3%) |
| 1,185,846 | 1,103,988 | 1,092,326 | 7.0% |
Lease financing |
| 55,400 | 59,638 | (7.1%) |
| 62,497 | 60,959 | 61,936 | (10.6%) |
Commercial and business lending |
| 5,860,416 | 5,615,036 | 4.4% |
| 5,431,195 | 5,275,069 | 5,016,701 | 16.8% |
Commercial real estate - investor |
| 2,951,524 | 2,899,930 | 1.8% |
| 2,821,023 | 2,832,447 | 2,755,943 | 7.1% |
Real estate construction |
| 770,584 | 692,579 | 11.3% |
| 630,081 | 607,773 | 564,243 | 36.6% |
Commercial real estate lending |
| 3,722,108 | 3,592,509 | 3.6% |
| 3,451,104 | 3,440,220 | 3,320,186 | 12.1% |
Total commercial |
| 9,582,524 | 9,207,545 | 4.1% |
| 8,882,299 | 8,715,289 | 8,336,887 | 14.9% |
Home equity revolving lines of credit |
| 896,931 | 922,084 | (2.7%) |
| 962,263 | 995,156 | 1,018,512 | (11.9%) |
Home equity loans 1st liens |
| 902,554 | 976,466 | (7.6%) |
| 1,047,207 | 1,097,394 | 1,135,391 | (20.5%) |
Home equity loans junior liens |
| 242,796 | 262,193 | (7.4%) |
| 280,051 | 296,021 | 313,661 | (22.6%) |
Total home equity |
| 2,042,281 | 2,160,743 | (5.5%) |
| 2,289,521 | 2,388,571 | 2,467,564 | (17.2%) |
Installment |
| 441,260 | 457,409 | (3.5%) |
| 473,563 | 492,721 | 524,278 | (15.8%) |
Residential mortgage |
| 3,661,742 | 3,622,455 | 1.1% |
| 3,485,719 | 3,320,212 | 3,273,873 | 11.8% |
Total consumer |
| 6,145,283 | 6,240,607 | (1.5%) |
| 6,248,803 | 6,201,504 | 6,265,715 | (1.9%) |
Total loans |
| $ 15,727,807 | $ 15,448,152 | 1.8% |
| $ 15,131,102 | $ 14,916,793 | $ 14,602,602 | 7.7% |
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Average Deposit Composition |
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| Jun13 vs Mar13 |
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| Jun13 vs Jun12 |
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| Jun 30, 2013 | Mar 31, 2013 | % Change |
| Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | % Change |
Noninterest-bearing demand |
| $ 4,191,704 | $ 4,185,924 | 0.1% |
| $ 4,448,767 | $ 3,962,102 | $ 3,695,024 | 13.4% |
Savings |
| 1,207,959 | 1,141,781 | 5.8% |
| 1,129,983 | 1,117,194 | 1,109,609 | 8.9% |
Interest-bearing demand |
| 2,867,524 | 2,779,929 | 3.2% |
| 2,236,826 | 2,136,280 | 2,105,440 | 36.2% |
Money market |
| 6,930,554 | 7,044,344 | (1.6%) |
| 6,797,306 | 6,240,596 | 5,860,043 | 18.3% |
Time deposits |
| 1,907,337 | 1,994,406 | (4.4%) |
| 2,037,386 | 2,159,684 | 2,280,568 | (16.4%) |
Total deposits |
| $ 17,105,078 | $ 17,146,384 | (0.2%) |
| $ 16,650,268 | $ 15,615,856 | $ 15,050,684 | 13.6% |
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SOURCE Associated Banc-Corp