Press Release Details 5.23

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Associated Reports 2013 Earnings of $1.10 per share, up 10% from 2012

01/16/2014

GREEN BAY, Wis., Jan. 16, 2014 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported earnings per share of $1.10 for the year ended December 31, 2013. This compares to $1.00 per common share, for the year ended December 31, 2012.

For the quarter ended December 31, 2013, the Company reported earnings per share of $0.28 per common share.  This compares to $0.26 per common share, for the quarter ended December 31, 2012.

"Overall we are pleased with our 2013 financial results and accomplishments.  We were able to continue to grow our balance sheet, increase total revenues, modestly reduce expenses, and grow bottom line earnings," said President and CEO Philip B. Flynn.  "We remain focused on delivering increased value to our shareholders."

2013 FULL YEAR HIGHLIGHTS   

  • Revenue of $959 million, up 2% from a year ago.
  • Noninterest expenses were down slightly from 2012.
  • Net income to common shareholders of $184 million, up 6% from a year ago.
  • Average loan balances have grown by $921 million, or 6%, from a year ago to $15.7 billion.
  • Strong average deposit growth of 12% from a year ago to $17.4 billion.
  • Net interest margin decreased 13 basis points from 2012 while 2013 net interest income was up 3% or $20 million.
  • Credit quality continued to improve with net charge offs, nonaccrual loans, past due loans and potential problem loans all declining year over year.
  • The Company repurchased $120 million, or approximately 7.7 million shares, of common stock at an average price of $15.57 per share.
  • Total dividends per common share of $0.33 were up 43% from 2012.
  • Return on Tier 1 common equity for 2013 of 9.8%, compared to 9.5% for 2012.
  • Capital ratios remain very strong with a Tier 1 common equity ratio of 11.46% at year end.

FOURTH QUARTER AND 2013 FINANCIAL RESULTS

Loans

Average loans of $15.7 billion for 2013 were up $921 million, or 6%, from 2012.  Total average Commercial Loans for 2013 increased 12% or $1 billion from a year ago to $9.5 billion.  The residential mortgage portfolio 2013 average balances grew by $384 million, or 12%, compared to 2012.  Run off in home equity and installment loan balances continues, with an average balance decline of $489 million during 2013, or 17%, from 2012, offsetting part of the growth. 

Fourth quarter 2013 average loans were flat compared to the prior quarter as the 4% increase in the residential mortgage portfolio was almost entirely offset by decreases in other portfolios.

Deposits                         

2013 Average deposits of $17.4 billion were up 12% or $1.9 billion from 2012.  Total average checking, savings, and money market balances growth of $2.2 billion was partially offset by declines in time deposits of $390 million during the year.

Average deposits of $17.9 billion for the fourth quarter were up $272 million, or 2% compared to the third quarter and have increased by $1.2 billion, or 7%, from the year ago quarter.  Late in the fourth quarter, the Company reduced collateralized municipal deposits by  $1 billion and replaced them with lower cost, longer term FHLB borrowings.

Net Interest Income and Net Interest Margin

Net interest income of $646 million for 2013 was up $20 million or 3% from 2012.  Fourth quarter net interest income of $167 million increased 4% compared to the prior quarter and was up $6 million, or 4% compared to the year ago quarter. 

Net interest margin decreased 13 basis points from 2012.  Fourth quarter net interest margin was 3.23%, an increase of 10 basis points from the 3.13% reported in the third quarter and a decrease of 9 basis points from a year ago.  The increase from the third quarter was mainly the result of an 8 basis point increase in asset yields as the Company experienced $3 million in interest recoveries.  Fourth quarter net interest margin also benefited by 3 basis points from liability cost management actions related to replacing higher cost deposits with less expensive FHLB funding.

Noninterest Income and Expense

Noninterest income of $313 million for 2013, was flat compared to 2012.  Noninterest income for the fourth quarter was $76 million, up $5 million, or 7% from the third quarter.  This increase was primarily attributed to net mortgage banking income being up $5 million from the prior quarter. 

2013 total noninterest expense of $681 million was down slightly from 2012.   Increases in personnel, technology and equipment, and business development/advertising expenses were more than offset by declines in legal and professional fees, losses other than loans, and foreclosure/OREO expenses.

Total noninterest expense for the quarter ended December 31, 2013 was $179 million, up $15 million or 9% from the third quarter. Personnel expenses increased by $3 million during the fourth quarter which included $2 million of severance costs related to ongoing efficiency initiatives.  Business development and advertising expenses increased $2 million from the third quarter as we ramped up our brand campaign.  Fourth quarter other expenses increased $3 million from the third quarter related to several one-time items.

Taxes

During the fourth quarter, the Company recognized a $6 million tax benefit related to a settlement of a tax issue and the expiration of various statutes of limitations.

Credit

The Company reported another quarter of improving credit quality with nonaccrual loans down 11%, to $185 million compared to the third quarter, and down 27% from a year ago.  The ratio of nonaccrual loans to total loans at year end  stands at 1.17% and has improved for the 15th consecutive quarter.

Net charge offs of $5 million for the fourth quarter were flat from the third quarter;  both quarters experienced elevated recoveries.

Provision for loan losses was $10 million in 2013 compared to $3 million for 2012.  The Company's allowance for loan losses was $268 million, representing an allowance equal to 1.69% of loans and representing a coverage ratio of 145% of nonaccrual loans at December 31, 2013.

Capital Ratios

The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.46% at December 31, 2013.  The Company's capital ratios continue to be well in excess of both current and expected "well-capitalized" regulatory benchmarks.

FOURTH 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, January 16, 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 fourth quarter 2013 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 $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 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. 

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

 































 

Associated Banc-Corp

Consolidated Balance Sheets (Unaudited)



December 31,


September 30,


Seql Qtr


June 30,


March 31,


December 31,


Comp Qtr

(in thousands)


2013


2013


$ Change


2013


2013


2012


$ Change

Assets















Cash and due from banks


$      455,482


$    526,009


$   (70,527)


$    422,779


$      336,247


$      563,304


$ (107,822)

Interest-bearing deposits in other















 financial institutions


126,018


277,761


(151,743)


121,390


82,555


147,434


(21,416)

Federal funds sold and securities purchased















 under agreements to resell


20,745


25,400


(4,655)


10,800


8,600


27,135


(6,390)

Securities held to maturity, at amortized cost


175,210


125,095


50,115


75,946


54,123


39,877


135,333

Securities available for sale, at fair value


5,250,585


4,840,035


410,550


4,854,319


4,950,317


4,926,758


323,827

Federal Home Loan Bank and Federal 















   Reserve Bank stocks, at cost


181,249


181,129


120


181,008


152,490


166,774


14,475

Loans held for sale


64,738


102,052


(37,314)


203,576


173,389


261,410


(196,672)

Loans


15,896,261


15,585,854


310,407


15,746,599


15,551,562


15,411,022


485,239

Allowance for loan losses


(268,315)


(271,724)


3,409


(277,218)


(286,923)


(297,409)


29,094

    Loans, net


15,627,946


15,314,130


313,816


15,469,381


15,264,639


15,113,613


514,333

Premises and equipment, net


270,890


265,636


5,254


258,903


254,674


253,958


16,932

Goodwill


929,168


929,168


-


929,168


929,168


929,168


-

Other intangible assets, net


74,464


75,730


(1,266)


74,612


66,294


61,176


13,288

Trading assets


43,728


49,402


(5,674)


49,732


65,014


70,711


(26,983)

Other assets


1,006,697


977,128


29,569


965,330


940,258


926,417


80,280

    Total assets


$ 24,226,920


23,688,675


$   538,245


23,616,944


$ 23,277,768


$ 23,487,735


$   739,185
















Liabilities and Stockholders' Equity















Noninterest-bearing demand deposits


$   4,626,312


4,453,663


$   172,649


4,259,776


$   4,453,109


$   4,759,556


$ (133,244)

Interest-bearing deposits


12,640,855


13,884,245


(1,243,390)


12,872,660


12,968,185


12,180,309


460,546

    Total deposits


17,267,167


18,337,908


(1,070,741)


17,132,436


17,421,294


16,939,865


327,302

Federal funds purchased and securities sold















 under agreements to repurchase


475,442


580,479


(105,037)


545,740


730,855


750,455


(275,013)

Other short-term funding


265,484


1,046,401


(780,917)


2,218,760


1,038,697


1,576,484


(1,311,000)

Long-term funding


3,087,267


614,568


2,472,699


614,822


915,063


1,015,346


2,071,921

Trading liabilities


46,470


52,430


(5,960)


52,598


70,236


76,343


(29,873)

Accrued expenses and other liabilities


193,800


184,607


9,193


175,612


165,358


192,843


957

    Total liabilities


21,335,630


20,816,393


519,237


20,739,968


20,341,503


20,551,336


784,294

Stockholders' Equity















  Preferred equity


61,862


62,737


(875)


63,272


63,272


63,272


(1,410)

  Common stock


1,750


1,750


-


1,750


1,750


1,750


-

  Surplus


1,617,990


1,614,516


3,474


1,610,243


1,605,966


1,602,136


15,854

  Retained earnings


1,392,508


1,361,498


31,010


1,330,737


1,297,692


1,281,811


110,697

  Accumulated other comprehensive income (loss)


(24,244)


(37,120)


12,876


(25,015)


42,991


48,603


(72,847)

  Treasury stock


(158,576)


(131,099)


(27,477)


(104,011)


(75,406)


(61,173)


(97,403)

    Total stockholders' equity


2,891,290


2,872,282


19,008


2,876,976


2,936,265


2,936,399


(45,109)

    Total liabilities and stockholders' equity


$ 24,226,920


23,688,675


$   538,245


23,616,944


$ 23,277,768


$ 23,487,735


$   739,185

 

 

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)



For The Three Months Ended





For The Year Ended






December 31,


Quarter


December 31,


Year-to-Date

(in thousands, except per share amounts)


2013


2012


$ Change

% Change


2013


2012


$ Change

% Change

Interest Income















Interest and fees on loans


$ 148,884


$ 150,107


$ (1,223)

(0.8%)


$ 587,526


$ 595,965


$ (8,439)

(1.4%)

Interest and dividends on investment securities:















  Taxable


24,316


20,368


3,948

19.4%


88,919


86,945


1,974

2.3%

  Tax-exempt


6,884


7,119


(235)

(3.3%)


27,345


28,655


(1,310)

(4.6%)

Other interest 


1,453


2,876


(1,423)

(49.5%)


5,193


6,719


(1,526)

(22.7%)

    Total interest income


181,537


180,470


1,067

0.6%


708,983


718,284


(9,301)

(1.3%)

Interest Expense















Interest on deposits 


7,340


9,091


(1,751)

(19.3%)


31,267


41,431


(10,164)

(24.5%)

Interest on Federal funds purchased and securities 















 sold under agreements to repurchase


271


558


(287)

(51.4%)


1,322


2,687


(1,365)

(50.8%)

Interest on other short-term funding


228


226


2

0.9%


1,519


3,294


(1,775)

(53.9%)

Interest on long-term funding


6,499


9,140


(2,641)

(28.9%)


29,332


44,880


(15,548)

(34.6%)

    Total interest expense


14,338


19,015


(4,677)

(24.6%)


63,440


92,292


(28,852)

(31.3%)

Net Interest Income


167,199


161,455


5,744

3.6%


645,543


625,992


19,551

3.1%

Provision for loan losses


2,000


3,000


(1,000)

(33.3%)


10,000


3,000


7,000

233.3%

Net interest income after provision for 















 loan losses


165,199


158,455


6,744

4.3%


635,543


622,992


12,551

2.0%

Noninterest Income















Trust service fees


11,938


10,429


1,509

14.5%


45,633


40,737


4,896

12.0%

Service charges on deposit accounts


17,330


16,817


513

3.1%


70,009


68,917


1,092

1.6%

Card-based and other nondeposit fees


12,684


12,690


(6)

(0.0%)


49,913


47,862


2,051

4.3%

Insurance commissions


11,274


10,862


412

3.8%


44,024


47,014


(2,990)

(6.4%)

Brokerage and annuity commissions


3,881


3,678


203

5.5%


14,877


15,643


(766)

(4.9%)

  Total core fee-based revenue


57,107


54,476


2,631

4.8%


224,456


220,173


4,283

1.9%

Mortgage banking, net


8,277


13,530


(5,253)

(38.8%)


48,847


63,500


(14,653)

(23.1%)

Capital market fees, net


2,771


4,243


(1,472)

(34.7%)


13,080


14,241


(1,161)

(8.2%)

Bank owned life insurance income


2,787


3,206


(419)

(13.1%)


11,855


13,952


(2,097)

(15.0%)

Asset gains (losses), net


2,687


(209)


2,896

N/M


5,413


(12,096)


17,509

(144.8%)

Investment securities gains (losses), net


(18)


152


(170)

(111.8%)


564


4,261


(3,697)

(86.8%)

Other


2,262


2,507


(245)

(9.8%)


8,884


9,259


(375)

(4.1%)

    Total noninterest income


75,873


77,905


(2,032)

(2.6%)


313,099


313,290


(191)

(0.1%)

Noninterest Expense















Personnel expense


101,215


98,073


3,142

3.2%


397,015


381,404


15,611

4.1%

Occupancy 


14,684


17,273


(2,589)

(15.0%)


59,409


60,794


(1,385)

(2.3%)

Equipment 


6,509


6,444


65

1.0%


25,351


23,566


1,785

7.6%

Technology


12,963


11,706


1,257

10.7%


49,445


43,548


5,897

13.5%

Business development and advertising


7,834


5,395


2,439

45.2%


23,346


21,303


2,043

9.6%

Other intangible amortization


1,011


1,049


(38)

(3.6%)


4,043


4,195


(152)

(3.6%)

Loan expense


3,677


3,130


547

17.5%


13,162


12,285


877

7.1%

Legal and professional fees


5,916


8,174


(2,258)

(27.6%)


20,226


31,232


(11,006)

(35.2%)

Losses other than loans


1,859


3,071


(1,212)

(39.5%)


1,942


12,258


(10,316)

(84.2%)

Foreclosure/OREO expense


2,829


3,293


(464)

(14.1%)


10,068


15,069


(5,001)

(33.2%)

FDIC expense


4,879


4,813


66

1.4%


19,461


19,478


(17)

(0.1%)

Other


16,091


13,907


2,184

15.7%


57,281


56,691


590

1.0%

    Total noninterest expense


179,467


176,328


3,139

1.8%


680,749


681,823


(1,074)

(0.2%)

Income before income taxes


61,605


60,032


1,573

2.6%


267,893


254,459


13,434

5.3%

Income tax expense 


13,847


13,404


443

3.3%


79,201


75,486


3,715

4.9%

Net income


47,758


46,628


1,130

2.4%


188,692


178,973


9,719

5.4%

Preferred stock dividends


1,273


1,300


(27)

(2.1%)


5,158


5,200


(42)

(0.8%)

Net income available to common equity


$   46,485


$   45,328


$  1,157

2.6%


$ 183,534


$ 173,773


$  9,761

5.6%
















Earnings Per Common Share:















  Basic


$       0.28


$       0.26


$    0.02

7.7%


$       1.10


$       1.00


$    0.10

10.0%

  Diluted


$       0.28


$       0.26


$    0.02

7.7%


$       1.10


$       1.00


$    0.10

10.0%
















Average Common Shares Outstanding:















  Basic


162,611


170,707


(8,096)

(4.7%)


165,584


172,255


(6,671)

(3.9%)

  Diluted


163,235


170,896


(7,661)

(4.5%)


165,802


172,357


(6,555)

(3.8%)
















N/M = Not meaningful.















 



Associated Banc-Corp


Consolidated Statements of Income (Unaudited) - Quarterly Trend








Sequential Qtr










Comparable Qtr


(in thousands, except per share amounts)


4Q13


3Q13


$ Change

% Change



2Q13


1Q13


4Q12



$ Change

% Change


Interest Income




















Interest and fees on loans


$ 148,884


$ 146,219


$ 2,665

1.8%



$ 146,896


$ 145,527


$ 150,107



$ (1,223)

(0.8%)


Interest and dividends on investment securities:




















  Taxable


24,316


21,544


2,772

12.9%



21,446


21,613


20,368



3,948

19.4%


  Tax-exempt


6,884


6,711


173

2.6%



6,785


6,965


7,119



(235)

(3.3%)


Other interest 


1,453


1,260


193

15.3%



1,233


1,247


2,876



(1,423)

(49.5%)


    Total interest income


181,537


175,734


5,803

3.3%



176,360


175,352


180,470



1,067

0.6%


Interest Expense




















Interest on deposits 


7,340


7,617


(277)

(3.6%)



7,769


8,541


9,091



(1,751)

(19.3%)


Interest on Federal funds purchased and securities 




















 sold under agreements to repurchase


271


308


(37)

(12.0%)



333


410


558



(287)

(51.4%)


Interest on other short-term funding


228


434


(206)

(47.5%)



525


332


226



2

0.9%


Interest on long-term funding


6,499


6,866


(367)

(5.3%)



7,551


8,416


9,140



(2,641)

(28.9%)


    Total interest expense


14,338


15,225


(887)

(5.8%)



16,178


17,699


19,015



(4,677)

(24.6%)


Net Interest Income


167,199


160,509


6,690

4.2%



160,182


157,653


161,455



5,744

3.6%


Provision for loan losses


2,000


-


2,000

N/M



4,000


4,000


3,000



(1,000)

(33.3%)


Net interest income after provision for 




















 loan losses


165,199


160,509


4,690

2.9%



156,182


153,653


158,455



6,744

4.3%


Noninterest Income




















Trust service fees


11,938


11,380


558

4.9%



11,405


10,910


10,429



1,509

14.5%


Service charges on deposit accounts


17,330


18,407


(1,077)

(5.9%)



17,443


16,829


16,817



513

3.1%


Card-based and other nondeposit fees


12,684


12,688


(4)

(0.0%)



12,591


11,950


12,690



(6)

(0.0%)


Insurance commissions


11,274


11,356


(82)

(0.7%)



9,631


11,763


10,862



412

3.8%


Brokerage and annuity commissions


3,881


3,792


89

2.3%



3,688


3,516


3,678



203

5.5%


  Total core fee-based revenue


57,107


57,623


(516)

(0.9%)



54,758


54,968


54,476



2,631

4.8%


Mortgage banking, net


8,277


3,542


4,735

133.7%



19,263


17,765


13,530



(5,253)

(38.8%)


Capital market fees, net


2,771


2,652


119

4.5%



5,074


2,583


4,243



(1,472)

(34.7%)


Bank owned life insurance income


2,787


2,817


(30)

(1.1%)



3,281


2,970


3,206



(419)

(13.1%)


Asset gains (losses), net


2,687


1,934


753

38.9%



(44)


836


(209)



2,896

N/M


Investment securities gains (losses), net


(18)


248


(266)

(107.3%)



34


300


152



(170)

(111.8%)


Other


2,262


2,100


162

7.7%



1,944


2,578


2,507



(245)

(9.8%)


    Total noninterest income


75,873


70,916


4,957

7.0%



84,310


82,000


77,905



(2,032)

(2.6%)


Noninterest Expense




















Personnel expense


101,215


98,102


3,113

3.2%



99,791


97,907


98,073



3,142

3.2%


Occupancy 


14,684


14,758


(74)

(0.5%)



14,305


15,662


17,273



(2,589)

(15.0%)


Equipment 


6,509


6,213


296

4.8%



6,462


6,167


6,444



65

1.0%


Technology


12,963


12,323


640

5.2%



12,651


11,508


11,706



1,257

10.7%


Business development and advertising


7,834


5,947


1,887

31.7%



5,028


4,537


5,395



2,439

45.2%


Other intangible amortization


1,011


1,010


1

0.1%



1,011


1,011


1,049



(38)

(3.6%)


Loan expense


3,677


3,157


520

16.5%



3,044


3,284


3,130



547

17.5%


Legal and professional fees


5,916


3,482


2,434

69.9%



5,483


5,345


8,174



(2,258)

(27.6%)


Losses other than loans


1,859


(1,400)


3,259

(232.8%)



1,799


(316)


3,071



(1,212)

(39.5%)


Foreclosure/OREO expense


2,829


2,515


314

12.5%



2,302


2,422


3,293



(464)

(14.1%)


FDIC expense


4,879


4,755


124

2.6%



4,395


5,432


4,813



66

1.4%


Other


16,091


13,509


2,582

19.1%



13,725


13,956


13,907



2,184

15.7%


    Total noninterest expense


179,467


164,371


15,096

9.2%



169,996


166,915


176,328



3,139

1.8%


Income before income taxes


61,605


67,054


(5,449)

(8.1%)



70,496


68,738


60,032



1,573

2.6%


Income tax expense 


13,847


21,396


(7,549)

(35.3%)



22,608


21,350


13,404



443

3.3%


Net income


47,758


45,658


2,100

4.6%



47,888


47,388


46,628



1,130

2.4%


Preferred stock dividends


1,273


1,285


(12)

(0.9%)



1,300


1,300


1,300



(27)

(2.1%)


Net income available to common equity


$   46,485


$   44,373


$ 2,112

4.8%



$   46,588


$   46,088


$   45,328



$  1,157

2.6%






















Earnings Per Common Share:




















  Basic


$       0.28


$       0.27


$   0.01

3.7%



$       0.28


$       0.27


$       0.26



$    0.02

7.7%


  Diluted


$       0.28


$       0.27


$   0.01

3.7%



$       0.28


$       0.27


$       0.26



$    0.02

7.7%






















Average Common Shares Outstanding:




















  Basic


162,611


164,954


(2,343)

(1.4%)



166,605


168,234


170,707



(8,096)

(4.7%)


  Diluted


163,235


165,443


(2,208)

(1.3%)



166,748


168,404


170,896



(7,661)

(4.5%)






















N/M = Not meaningful.




















 
















Associated Banc-Corp

Selected Quarterly Information

(in thousands, except per share, full time equivalent employee data and otherwise noted)

YTD 2013


YTD 2012


4th Qtr 2013


3rd Qtr 2013


2nd Qtr 2013


1st Qtr 2013


4th Qtr 2012


Per Common Share Data















Dividends

$ 0.33


$ 0.23


$ 0.09


$ 0.08


$ 0.08


$ 0.08


$ 0.08


Market Value:















High

$ 17.60


$ 14.63


$ 17.56


$ 17.60


$ 15.69


$ 15.30


$ 13.54


Low

13.46


11.43


15.34


15.29


13.81


13.46


12.19


Close

17.40


13.12


17.40


15.49


15.55


15.19


13.12


Book value

17.40


16.97


17.40


17.10


16.97


17.13


16.97


Tier 1 common equity / share

11.77


11.08


11.77


11.59


11.42


11.22


11.08


Tangible book value / share

11.62


11.39


11.62


11.37


11.28


11.51


11.39

















Performance Ratios (annualized)















Return on average assets

0.81

%

0.81

%

0.80

%

0.78

%

0.82

%

0.83

%

0.83

%

Return on average tangible common equity

9.73


8.96


9.87


9.48


9.76


9.81


9.15


Return on average Tier 1 common equity (1)

9.77


9.45


9.78


9.31


9.94


10.07


9.61


Effective tax rate

29.56


29.67


22.48


31.91


32.07


31.06


22.33


Dividend payout ratio (3)

30.00


23.00


32.14


29.63


28.57


29.63


30.77

















Average Balances















Common stockholders' equity

$ 2,829,300


$ 2,885,716


$ 2,810,130


$ 2,799,885


$ 2,857,722


$ 2,850,227


$ 2,915,346


Average Tier 1 common equity (1)

1,878,371


1,838,424


1,885,377


1,890,398


1,880,826


1,856,431


1,876,686

















Selected trend information















Average full time equivalent employees

4,728


4,968


4,584


4,699


4,790


4,841


4,915


Trust assets under management, at market value ($ in millions)

$ 7,424


$ 6,454


$ 7,424


$ 7,078


$ 6,894


$ 6,913


$ 6,454


Mortgage loans originated for sale during period

2,304,006


2,797,431


326,648


513,549


782,398


681,410


780,469


Mortgage portfolio serviced for others ($ in millions)

8,084


7,453


8,084


8,014


7,794


7,585


7,453


Mortgage servicing rights, net / Portfolio serviced for others

0.78%


0.62%


0.78%


0.79%


0.79%


0.69%


0.62%

















At Period End















Loans / deposits





92.06%


84.99%


91.91%


89.27%


90.97%


Risk weighted assets ($ in millions) (4) (6)





16,694


16,359


16,479


16,163


16,149


Tier 1 common equity (1)





1,913,320


1,904,060


1,893,875


1,881,410


1,875,534


Stockholders' equity / assets





11.93%


12.13%


12.18%


12.61%


12.50%


Tangible common equity / tangible assets (5)





8.11%


8.21%


8.25%


8.64%


8.56%


Tangible equity / tangible assets (5)





8.38%


8.49%


8.53%


8.92%


8.84%


Tier 1 common equity / risk-weighted assets (4) (6)





11.46%


11.64%


11.49%


11.64%


11.61%


Tier 1 leverage ratio (4) (6)





8.70%


8.76%


8.73%


8.78%


8.98%


Tier 1 risk-based capital ratio (4) (6)





11.83%


12.02%


11.88%


12.03%


12.01%


Total risk-based capital ratio (4) (6)





13.09%


13.44%


13.29%


13.45%


13.42%


Shares outstanding, end of period





162,623


164,303


165,837


167,673


169,304

















Non-GAAP financial measures reconcilation















Efficiency ratio (2)

71.05

%

72.92

%

73.83

%

71.10

%

69.54

%

69.74

%

73.71

%

Taxable equivalent adjustment

(1.46)


(1.60)


(1.50)


(1.49)


(1.39)


(1.46)


(1.57)


Asset gains (losses), net

0.40


(0.90)


0.80


0.58


(0.01)


0.24


(0.06)


Other intangible amortization

(0.42)


(0.43)


(0.42)


(0.44)


(0.41)


(0.42)


(0.43)


Efficiency ratio, fully taxable equivalent (2)

69.57

%

69.99

%

72.71

%

69.75

%

67.73

%

68.10

%

71.65

%

(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) December 31, 2013 data is estimated.

(5) 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.

(6) 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.

 












Associated Banc-Corp

Selected Asset Quality Information





Dec13 vs Sep13





Dec13 vs Dec12

(in thousands)


Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Allowance for Loan Losses










Beginning balance


$        271,724

$       277,218

(2.0%)


$       286,923

$         297,409

$        315,150

(13.8%)

Provision for loan losses


2,000

-

N/M


4,000

4,000

3,000

(33.3%)

Charge offs


(18,742)

(20,288)

(7.6%)


(21,904)

(27,128)

(30,417)

(38.4%)

Recoveries


13,333

14,794

(9.9%)


8,199

12,642

9,676

37.8%

Net charge offs


(5,409)

(5,494)

(1.5%)


(13,705)

(14,486)

(20,741)

(73.9%)

Ending balance


$        268,315

$       271,724

(1.3%)


$       277,218

$         286,923

$        297,409

(9.8%)











Reserve for losses on unfunded commitments


$          21,900

$         21,600

1.4%


$         22,400

$           21,100

$          21,800

0.5%





















Net Charge Offs




Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Commercial and industrial


$            4,555

$             (447)

N/M


$           1,477

$                696

$            2,630

73.2%

Commercial real estate - owner occupied


967

2,076

(53.4%)


1,574

1,518

2,056

(53.0%)

Lease financing


(16)

-

N/M


16

(12)

754

(102.1%)

  Commercial and business lending


5,506

1,629

238.0%


3,067

2,202

5,440

1.2%

Commercial real estate - investor


137

(414)

(133.1%)


2,999

163

(232)

(159.1%)

Real estate construction


(3,130)

(303)

N/M


(95)

1,392

858

N/M

  Commercial real estate lending


(2,993)

(717)

317.4%


2,904

1,555

626

N/M

    Total commercial


2,513

912

175.5%


5,971

3,757

6,066

(58.6%)

Home equity revolving lines of credit


966

767

25.9%


2,512

3,615

3,590

(73.1%)

Home equity loans 1st liens


372

564

(34.0%)


954

765

1,060

(64.9%)

Home equity loans junior liens


1,111

800

38.9%


2,034

1,957

3,421

(67.5%)

  Home equity 


2,449

2,131

14.9%


5,500

6,337

8,071

(69.7%)

Installment


(611)

124

N/M


66

177

1,027

(159.5%)

Residential mortgage


1,058

2,327

(54.5%)


2,168

4,215

5,577

(81.0%)

  Total consumer


2,896

4,582

(36.8%)


7,734

10,729

14,675

(80.3%)

        Total net charge offs


$            5,409

$           5,494

(1.5%)


$         13,705

$           14,486

$          20,741

(73.9%)



-








Net Charge Offs to Average Loans (in basis points) *


Dec 31, 2013

Sep 30, 2013



Jun 30, 2013

Mar 31, 2013

Dec 31, 2012


Commercial and industrial


38

(4)



13

6

25


Commercial real estate - owner occupied


34

72



54

51

69


Lease financing


(12)

-



12

(8)

480


  Commercial and business lending


37

11



21

16

40


Commercial real estate - investor


2

(6)



41

2

(3)


Real estate construction


(145)

(15)



(5)

82

54


  Commercial real estate lending


(32)

(8)



31

18

7


    Total commercial


10

4



25

17

27


Home equity revolving lines of credit


44

34



112

159

148


Home equity loans 1st liens


19

27



42

32

40


Home equity loans junior liens


205

140



336

303

486


  Home equity 


52

44



108

119

140


Installment


(59)

11



6

16

86


Residential mortgage


11

25



24

47

64


  Total consumer


19

30



50

70

93


        Total net charge offs


14

14



35

38

55






















Credit Quality




Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Nonaccrual loans


$        185,428

$       207,594

(10.7%)


$       217,493

$         225,436

$        252,868

(26.7%)

Other real estate owned (OREO)


18,118

25,077

(27.8%)


27,407

35,156

34,900

(48.1%)

    Total nonperforming assets


$        203,546

$       232,671

(12.5%)


$       244,900

$         260,592

$        287,768

(29.3%)











Loans 90 or more days past due and still accruing


2,350

2,063

13.9%


1,548

5,690

2,289

2.7%

Restructured loans (accruing)


123,985

117,043

5.9%


119,066

120,093

121,087

2.4%











Allowance for loan losses / loans


1.69%

1.74%



1.76%

1.84%

1.93%


Allowance for loan losses / nonaccrual loans


144.70

130.89



127.46

127.27

117.61


Nonaccrual loans / total loans


1.17

1.33



1.38

1.45

1.64


Nonperforming assets / total loans plus OREO


1.28

1.49



1.55

1.67

1.86


Nonperforming assets / total assets


0.84

0.98



1.04

1.12

1.23


Net charge offs / average loans (annualized)


0.14

0.14



0.35

0.38

0.55


Year-to-date net charge offs / average loans


0.25

0.29



0.36

0.38

0.57












Nonaccrual loans by type:










Commercial and industrial


$          37,719

$         36,105

4.5%


$         30,302

$           33,242

$          39,182

(3.7%)

Commercial real estate - owner occupied


29,664

28,301

4.8%


24,003

23,199

24,254

22.3%

Lease financing


69

99

(30.3%)


72

2,165

3,031

(97.7%)

  Commercial and business lending


67,452

64,505

4.6%


54,377

58,606

66,467

1.5%

Commercial real estate - investor


37,596

49,841

(24.6%)


60,780

56,776

58,687

(35.9%)

Real estate construction


6,467

18,670

(65.4%)


21,419

22,166

27,302

(76.3%)

  Commercial real estate lending


44,063

68,511

(35.7%)


82,199

78,942

85,989

(48.8%)

    Total commercial


111,515

133,016

(16.2%)


136,576

137,548

152,456

(26.9%)

Home equity revolving lines of credit


11,883

11,991

(0.9%)


12,940

15,914

20,446

(41.9%)

Home equity loans 1st liens


6,135

6,131

0.1%


7,898

8,626

8,717

(29.6%)

Home equity loans junior liens


7,149

7,321

(2.3%)


7,296

9,405

10,052

(28.9%)

  Home equity 


25,167

25,443

(1.1%)


28,134

33,945

39,215

(35.8%)

Installment


1,114

1,269

(12.2%)


1,533

1,762

1,838

(39.4%)

Residential mortgage


47,632

47,866

(0.5%)


51,250

52,181

59,359

(19.8%)

  Total consumer


73,913

74,578

(0.9%)


80,917

87,888

100,412

(26.4%)

        Total nonaccrual loans


$        185,428

$       207,594

(10.7%)


$       217,493

$         225,436

$        252,868

(26.7%)





















* Annualized.










N/M = Not meaningful.




















Associated Banc-Corp

Selected Asset Quality Information (continued)





Dec13 vs Sep13





Dec13 vs Dec12

(in thousands)


Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Restructured loans (accruing)










Commercial and industrial


$         32,517

$         32,145

1.2%


$         30,970

$          29,251

$         28,140

15.6%

Commercial real estate - owner occupied


13,009

14,425

(9.8%)


14,336

12,888

13,852

(6.1%)

Lease financing


-

-

N/M


-

-

-

N/M

  Commercial and business lending


45,526

46,570

(2.2%)


45,306

42,139

41,992

8.4%

Commercial real estate - investor


44,946

35,073

28.1%


37,299

41,253

41,660

7.9%

Real estate construction


3,793

4,825

(21.4%)


5,365

5,540

4,530

(16.3%)

  Commercial real estate lending


48,739

39,898

22.2%


42,664

46,793

46,190

5.5%

    Total commercial


94,265

86,468

9.0%


87,970

88,932

88,182

6.9%

Home equity revolving lines of credit


1,117

1,118

(0.1%)


1,130

880

867

28.8%

Home equity loans 1st liens


1,436

1,628

(11.8%)


1,684

1,783

1,930

(25.6%)

Home equity loans junior liens


7,080

7,113

(0.5%)


7,119

6,893

7,171

(1.3%)

  Home equity 


9,633

9,859

(2.3%)


9,933

9,556

9,968

(3.4%)

Installment


246

416

(40.9%)


570

664

653

(62.3%)

Residential mortgage


19,841

20,300

(2.3%)


20,593

20,941

22,284

(11.0%)

  Total consumer


29,720

30,575

(2.8%)


31,096

31,161

32,905

(9.7%)

        Total restructured loans (accruing)


$       123,985

$       117,043

5.9%


$       119,066

$        120,093

$       121,087

2.4%











Restructured loans in nonaccrual loans (not included above)


$         59,585

$         69,311

(14.0%)


$         70,354

$          67,811

$         80,590

(26.1%)





















Loans Past Due 30-89 Days




Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Commercial and industrial


$           6,826

$           6,518

4.7%


$           8,516

$          10,263

$         11,339

(39.8%)

Commercial real estate - owner occupied


3,106

8,505

(63.5%)


8,105

6,804

11,053

(71.9%)

Lease financing


-

1,000

N/M


57

283

12

N/M

  Commercial and business lending


9,932

16,023

(38.0%)


16,678

17,350

22,404

(55.7%)

Commercial real estate - investor


23,215

21,747

6.8%


18,269

25,201

13,472

72.3%

Real estate construction


1,954

820

138.3%


797

2,287

3,155

(38.1%)

  Commercial real estate lending


25,169

22,567

11.5%


19,066

27,488

16,627

51.4%

    Total commercial


35,101

38,590

(9.0%)


35,744

44,838

39,031

(10.1%)

Home equity revolving lines of credit


6,728

6,318

6.5%


7,739

1,832

7,829

(14.1%)

Home equity loans 1st liens


1,110

1,376

(19.3%)


1,857

1,869

1,457

(23.8%)

Home equity loans junior liens


2,842

2,206

28.8%


2,709

2,848

4,252

(33.2%)

  Home equity 


10,680

9,900

7.9%


12,305

6,549

13,538

(21.1%)

Installment


1,150

1,170

(1.7%)


1,434

2,500

2,109

(45.5%)

Residential mortgage


6,118

6,722

(9.0%)


9,920

8,793

9,403

(34.9%)

  Total consumer


17,948

17,792

0.9%


23,659

17,842

25,050

(28.4%)

        Total loans past due 30-89 days


$         53,049

$         56,382

(5.9%)


$         59,403

$          62,680

$         64,081

(17.2%)





















Potential Problem Loans




Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Commercial and industrial


$       113,669

$       112,947

0.6%


$       127,382

$        127,367

$       128,434

(11.5%)

Commercial real estate - owner occupied


56,789

61,256

(7.3%)


75,074

93,098

99,592

(43.0%)

Lease financing


1,784

207

N/M


279

251

264

N/M

  Commercial and business lending


172,242

174,410

(1.2%)


202,735

220,716

228,290

(24.6%)

Commercial real estate - investor


52,429

87,526

(40.1%)


89,342

101,775

107,068

(51.0%)

Real estate construction


5,263

7,540

(30.2%)


9,184

10,040

13,092

(59.8%)

  Commercial real estate lending


57,692

95,066

(39.3%)


98,526

111,815

120,160

(52.0%)

    Total commercial


229,934

269,476

(14.7%)


301,261

332,531

348,450

(34.0%)

Home equity revolving lines of credit


303

170

78.2%


308

450

520

(41.7%)

Home equity loans 1st liens


-

-

N/M


-

-

-

N/M

Home equity loans junior liens


1,810

2,067

(12.4%)


2,307

2,871

3,150

(42.5%)

  Home equity 


2,113

2,237

(5.5%)


2,615

3,321

3,670

(42.4%)

Installment


50

67

(25.4%)


83

99

111

(55.0%)

Residential mortgage


3,312

5,342

(38.0%)


5,917

7,882

8,762

(62.2%)

  Total consumer


5,475

7,646

(28.4%)


8,615

11,302

12,543

(56.4%)

        Total potential problem loans


$       235,409

$       277,122

(15.1%)


$       309,876

$        343,833

$       360,993

(34.8%)





















N/M = Not meaningful.



















Associated Banc-Corp

Net Interest Income Analysis - Taxable Equivalent Basis

Sequential Quarter


Three months ended December 31, 2013


Three months ended September 30, 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


$   5,882,438

$                   51,498

3.47%


$   5,876,745

$                   52,215

3.53%

      Commercial real estate lending


3,736,314

40,241

4.28


3,768,895

37,630

3.96

         Total commercial


9,618,752

91,739

3.79


9,645,640

89,845

3.70

      Residential mortgage


3,856,944

32,201

3.34


3,714,459

30,479

3.28

      Retail


2,272,588

25,851

4.53


2,364,266

26,816

4.51

         Total loans


15,748,284

149,791

3.78


15,724,365

147,140

3.72

      Investment securities


5,188,616

35,331

2.72


4,980,228

32,282

2.59

      Other short-term investments


305,165

1,453

1.90


334,874

1,260

1.51

         Investments and other


5,493,781

36,784

2.68


5,315,102

33,542

2.52

Total earning assets


21,242,065

186,575

3.50


21,039,467

180,682

3.42

   Other assets, net


2,316,660




2,274,110



Total assets


$ 23,558,725




$ 23,313,577












Interest-bearing liabilities:









   Savings deposits


$   1,200,338

$                        248

0.08%


$   1,204,743

$                        249

0.08%

   Interest-bearing demand deposits


2,852,090

1,047

0.15


2,810,962

1,101

0.16

   Money market deposits


7,748,650

3,399

0.17


7,556,050

3,449

0.18

   Time deposits


1,727,138

2,646

0.61


1,773,760

2,818

0.63

      Total interest-bearing deposits


13,528,216

7,340

0.22


13,345,515

7,617

0.23

   Federal funds purchased and securities sold under









   agreements to repurchase


613,943

271

0.18


633,594

308

0.19

   Other short-term funding


726,551

228

0.12


1,417,113

434

0.12

   Long-term funding


1,266,464

6,499

2.05


614,708

6,866

4.47

      Total short and long-term funding


2,606,958

6,998

1.07


2,665,415

7,608

1.14

Total interest-bearing liabilities


16,135,174

14,338

0.35


16,010,930

15,225

0.38

   Noninterest-bearing demand deposits


4,353,315




4,264,304



   Other liabilities


197,598




175,453



   Stockholders' equity


2,872,638




2,862,890



Total liabilities and stockholders' equity


$ 23,558,725




$ 23,313,577












Net interest income and rate spread (1)



$                 172,237

3.15%



$                 165,457

3.04%

Net interest margin (1)




3.23%




3.13%

Taxable equivalent adjustment



$                     5,038




$                     4,948




















Net Interest Income Analysis - Taxable Equivalent Basis

Comparable Quarter


Three months ended December 31, 2013


Three months ended December 31, 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


$   5,882,438

$                   51,498

3.47%


$   5,431,195

$                   53,442

3.92%

      Commercial real estate lending


3,736,314

40,241

4.28


3,451,104

35,623

4.11

         Total commercial


9,618,752

91,739

3.79


8,882,299

89,065

3.99

      Residential mortgage


3,856,944

32,201

3.34


3,485,719

30,126

3.46

      Retail


2,272,588

25,851

4.53


2,763,084

31,865

4.59

         Total loans


15,748,284

149,791

3.78


15,131,102

151,056

3.98

      Investment securities


5,188,616

35,331

2.72


4,545,178

31,759

2.79

      Other short-term investments


305,165

1,453

1.90


356,152

2,876

3.22

         Investments and other


5,493,781

36,784

2.68


4,901,330

34,635

2.83

Total earning assets


21,242,065

186,575

3.50


20,032,432

185,691

3.70

   Other assets, net


2,316,660




2,429,454



Total assets


$ 23,558,725




$ 22,461,886












Interest-bearing liabilities:









   Savings deposits


$   1,200,338

$                        248

0.08%


$   1,129,983

$                        225

0.08%

   Interest-bearing demand deposits


2,852,090

1,047

0.15


2,236,826

954

0.17

   Money market deposits


7,748,650

3,399

0.17


6,797,306

4,103

0.24

   Time deposits


1,727,138

2,646

0.61


2,037,386

3,809

0.74

      Total interest-bearing deposits


13,528,216

7,340

0.22


12,201,501

9,091

0.30

   Federal funds purchased and securities sold under









   agreements to repurchase


613,943

271

0.18


984,869

558

0.23

   Other short-term funding


726,551

228

0.12


550,137

226

0.16

   Long-term funding


1,266,464

6,499

2.05


1,103,655

9,140

3.31

      Total short and long-term funding


2,606,958

6,998

1.07


2,638,661

9,924

1.50

Total interest-bearing liabilities


16,135,174

14,338

0.35


14,840,162

19,015

0.51

   Noninterest-bearing demand deposits


4,353,315




4,448,767



   Other liabilities


197,598




194,339



   Stockholders' equity


2,872,638




2,978,618



Total liabilities and stockholders' equity


$ 23,558,725




$ 22,461,886












Net interest income and rate spread (1)



$                 172,237

3.15%



$                 166,676

3.19%

Net interest margin (1)




3.23%




3.32%

Taxable equivalent adjustment



$                     5,038




$                     5,221


(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

Net Interest Income Analysis - Taxable Equivalent Basis

Year Over Year


Year ended December 31, 2013


Year ended December 31, 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


$   5,809,578

$ 208,039

3.58%


$   5,139,155

$ 202,444

3.94%

      Commercial real estate lending


3,705,526

149,539

4.04


3,350,190

140,881

4.21

         Total commercial


9,515,104

357,578

3.76


8,489,345

343,325

4.04

      Residential mortgage


3,714,544

123,275

3.32


3,330,123

121,399

3.65

      Retail


2,433,497

110,338

4.53


2,922,317

135,094

4.62

         Total loans


15,663,145

591,191

3.77


14,741,785

599,818

4.07

      Investment securities


4,995,331

132,671

2.66


4,469,541

132,793

2.97

      Other short-term investments


321,652

5,193

1.61


402,451

6,719

1.67

         Investments and other


5,316,983

137,864

2.59


4,871,992

139,512

2.86

Total earning assets


20,980,128

729,055

3.47


19,613,777

739,330

3.77

   Other assets, net


2,325,630




2,362,580



Total assets


$ 23,305,758




$ 21,976,357












Interest-bearing liabilities:









   Savings deposits


$   1,188,910

$        942

0.08%


$   1,096,692

$        851

0.08%

   Interest-bearing demand deposits


2,827,778

4,517

0.16


2,148,459

3,741

0.17

   Money market deposits


7,322,476

13,702

0.19


6,148,663

15,336

0.25

   Time deposits


1,849,718

12,106

0.65


2,239,709

21,503

0.96

      Total interest-bearing deposits


13,188,882

31,267

0.24


11,633,523

41,431

0.36

   Federal funds purchased and securities sold under









   agreements to repurchase


675,574

1,322

0.20


1,177,105

2,687

0.23

   Other short-term funding


1,198,264

1,519

0.13


936,376

3,294

0.35

   Long-term funding


901,927

29,332

3.25


1,158,731

44,880

3.87

      Total short and long-term funding


2,775,765

32,173

1.16


3,272,212

50,861

1.55

Total interest-bearing liabilities


15,964,647

63,440

0.40


14,905,735

92,292

0.62

   Noninterest-bearing demand deposits


4,249,313




3,948,846



   Other liabilities


199,486




172,788



   Stockholders' equity


2,892,312




2,948,988



Total liabilities and stockholders' equity


$ 23,305,758




$ 21,976,357












Net interest income and rate spread (1)



$ 665,615

3.07%



$ 647,038

3.15%

Net interest margin (1)




3.17%




3.30%

Taxable equivalent adjustment



$   20,072




$   21,046


(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

Year Over Year Change


Years Ended December 31, 2013 vs December 31, 2012



 Change in 

 Change in 

$ Balances

(in thousands)


 Balance 

 Income / Expense 

 Growth / Decline 






Earning assets:





   Loans:





      Commercial and business lending


$      670,423

$     5,595

13.0%

      Commercial real estate lending


355,336

8,658

10.6

         Total commercial


1,025,759

14,253

12.1

      Residential mortgage


384,421

1,876

11.5

      Retail


(488,820)

(24,756)

(16.7)

         Total loans


921,360

(8,627)

6.2

      Investment securities


525,790

(122)

11.8

      Other short-term investments


(80,799)

(1,526)

(20.1)

         Investments and other


444,991

(1,648)

9.1

Total earning assets


1,366,351

(10,275)

7.0

   Other assets, net


(36,950)


(1.6)

Total assets


$   1,329,401


6.0






Interest-bearing liabilities:





   Savings deposits


$        92,218

$          91

8.4%

   Interest-bearing demand deposits


679,319

776

31.6

   Money market deposits


1,173,813

(1,634)

19.1

   Time deposits


(389,991)

(9,397)

(17.4)

      Total interest-bearing deposits


1,555,359

(10,164)

13.4

   Federal funds purchased and securities sold under





   agreements to repurchase


(501,531)

(1,365)

(42.6)

   Other short-term funding


261,888

(1,775)

28.0

   Long-term funding


(256,804)

(15,548)

(22.2)

      Total short and long-term funding


(496,447)

(18,688)

(15.2)

Total interest-bearing liabilities


1,058,912

(28,852)

7.1

   Noninterest-bearing demand deposits


300,467


7.6

   Other liabilities


26,698


15.5

   Stockholders' equity


(56,676)


(1.9)

Total liabilities and stockholders' equity


$   1,329,401


6.0






Net interest income and rate spread



$   18,577


Net interest margin





Taxable equivalent adjustment



$      (974)


 











Associated Banc-Corp

Financial Summary and Comparison











Period End Loan Composition




 Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Commercial and industrial


$    4,822,680

$    4,703,056

2.5%


$    4,752,838

$     4,651,143

$    4,502,021

7.1%

Commercial real estate - owner occupied


1,114,715

1,147,352

(2.8%)


1,174,866

1,199,513

1,219,747

(8.6%)

Lease financing


55,483

51,727

7.3%


55,084

57,908

64,196

(13.6%)

  Commercial and business lending


5,992,878

5,902,135

1.5%


5,982,788

5,908,564

5,785,964

3.6%

Commercial real estate - investor


2,939,456

2,847,152

3.2%


3,010,992

2,900,167

2,906,759

1.1%

Real estate construction


896,248

834,744

7.4%


800,569

729,145

655,381

36.8%

  Commercial real estate lending


3,835,704

3,681,896

4.2%


3,811,561

3,629,312

3,562,140

7.7%

  Total commercial


9,828,582

9,584,031

2.6%


9,794,349

9,537,876

9,348,104

5.1%

Home equity revolving lines of credit


874,840

875,703

(0.1%)


888,162

904,187

936,065

(6.5%)

Home equity loans 1st liens


742,120

794,912

(6.6%)


863,779

940,017

1,013,757

(26.8%)

Home equity loans junior liens


208,054

220,763

(5.8%)


234,292

254,203

269,672

(22.8%)

  Home equity 


1,825,014

1,891,378

(3.5%)


1,986,233

2,098,407

2,219,494

(17.8%)

Installment


407,074

420,268

(3.1%)


434,029

447,445

466,727

(12.8%)

Residential mortgage


3,835,591

3,690,177

3.9%


3,531,988

3,467,834

3,376,697

13.6%

    Total consumer


6,067,679

6,001,823

1.1%


5,952,250

6,013,686

6,062,918

0.1%

Total loans


$  15,896,261

$  15,585,854

2.0%


$  15,746,599

$   15,551,562

$  15,411,022

3.1%





















Period End Deposit and Customer Funding Composition




 Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Noninterest-bearing demand


$    4,626,312

$    4,453,663

3.9%


$    4,259,776

$     4,453,109

$    4,759,556

(2.8%)

Savings


1,159,512

1,195,944

(3.0%)


1,211,567

1,197,134

1,109,861

4.5%

Interest-bearing demand


2,889,705

2,735,529

5.6%


2,802,277

2,966,934

2,554,479

13.1%

Money market


6,906,442

8,199,281

(15.8%)


7,040,317

6,836,678

6,518,075

6.0%

Brokered CDs


50,450

56,024

(9.9%)


59,206

49,919

26,270

92.0%

Other time 


1,634,746

1,697,467

(3.7%)


1,759,293

1,917,520

1,971,624

(17.1%)

  Total deposits


17,267,167

18,337,908

(5.8%)


17,132,436

17,421,294

16,939,865

1.9%

Customer repo sweeps


419,247

515,555

(18.7%)


489,700

617,038

564,038

(25.7%)

Customer repo term


-

-

N/M


-

4,882

115,032

(100.0%)

  Total customer funding


419,247

515,555

(18.7%)


489,700

621,920

679,070

(38.3%)

    Total deposits and customer funding


$17,686,414

$  18,853,463

(6.2%)


$  17,622,136

$   18,043,214

$  17,618,935

0.4%











Network transaction deposits included above in interest-bearing demand and money market


1,936,403

2,222,810

(12.9%)


2,135,306

2,054,714

1,684,745

14.9%

Brokered CDs


50,450

56,024

(9.9%)


59,206

49,919

26,270

92.0%

    Total network and brokered funding


1,986,853

2,278,834

(12.8%)


2,194,512

2,104,633

1,711,015

16.1%











    Net customer deposits and funding (1)


15,699,561

16,574,629

(5.3%)


15,427,624

15,938,581

15,907,920

(1.3%)











(1) Total deposits and customer funding excluding total network and brokered funding.





















Quarter Average Loan Composition




 Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Commercial and industrial


$    4,709,435

$4,680,582

0.6%


$4,635,892

$4,358,486

$4,182,852

12.6%

Commercial real estate - owner occupied


1,119,186

1,142,919

(2.1%)


1,169,124

1,196,912

1,185,846

(5.6%)

Lease financing


53,817

53,244

1.1%


55,400

59,638

62,497

(13.9%)

  Commercial and business lending


5,882,438

5,876,745

0.1%


5,860,416

5,615,036

5,431,195

8.3%

Commercial real estate - investor


2,878,176

2,940,115

(2.1%)


2,951,524

2,899,930

2,821,023

2.0%

Real estate construction


858,138

828,780

3.5%


770,584

692,579

630,081

36.2%

  Commercial real estate lending


3,736,314

3,768,895

(0.9%)


3,722,108

3,592,509

3,451,104

8.3%

  Total commercial


9,618,752

9,645,640

(0.3%)


9,582,524

9,207,545

8,882,299

8.3%

Home equity revolving lines of credit


876,938

882,478

(0.6%)


896,931

922,084

962,263

(8.9%)

Home equity loans 1st liens


767,857

826,653

(7.1%)


902,554

976,466

1,047,207

(26.7%)

Home equity loans junior liens


214,557

227,021

(5.5%)


242,796

262,193

280,051

(23.4%)

  Home equity 


1,859,352

1,936,152

(4.0%)


2,042,281

2,160,743

2,289,521

(18.8%)

Installment


413,236

428,114

(3.5%)


441,260

457,409

473,563

(12.7%)

Residential mortgage


3,856,944

3,714,459

3.8%


3,661,742

3,622,455

3,485,719

10.6%

  Total consumer


6,129,532

6,078,725

0.8%


6,145,283

6,240,607

6,248,803

(1.9%)

Total loans


$  15,748,284

$15,724,365

0.2%


$15,727,807

$15,448,152

$15,131,102

4.1%





















Quarter Average Deposit Composition




 Dec13 vs Sep13





Dec13 vs Dec12



Dec 31, 2013

Sep 30, 2013

% Change


Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

% Change

Noninterest-bearing demand


$    4,353,315

$4,264,304

2.1%


$4,191,704

$4,185,924

$4,448,767

(2.1%)

Savings


1,200,338

1,204,743

(0.4%)


1,207,959

1,141,781

1,129,983

6.2%

Interest-bearing demand


2,852,090

2,810,962

1.5%


2,867,524

2,779,929

2,236,826

27.5%

Money market


7,748,650

7,556,050

2.5%


6,930,554

7,044,344

6,797,306

14.0%

Time deposits


1,727,138

1,773,760

(2.6%)


1,907,337

1,994,406

2,037,386

(15.2%)

  Total deposits


$  17,881,531

$17,609,819

1.5%


$17,105,078

$17,146,384

$16,650,268

7.4%

 

 

SOURCE Associated Banc-Corp

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