Associated Reports Second Quarter Earnings of $0.28 per share - WTRF 7 News Sports Weather - Wheeling Steubenville

Associated Reports Second Quarter Earnings of $0.28 per share

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SOURCE Associated Banc-Corp

Loan growth continues to drive results

GREEN BAY, Wis., July 17, 2014 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $45 million, or $0.28 per common share, for the quarter ended June 30, 2014.  This compares to net income to common shareholders of $44 million, or $0.27 per common share, for the quarter ended March 31, 2014.

"We are pleased to report another quarter of solid results.  Our 2014 results continue to be driven by robust loan growth, particularly in our Commercial businesses.  We remain focused on expense management and improving operational efficiency," said President and CEO Philip B. Flynn.  "We will continue to be opportunistic in the ways we deploy capital while remaining consistent with our commitment to build long-term shareholder value at Associated."

HIGHLIGHTS

  • Average loans grew $482 million, or 3% from the first quarter to $16.6 billion
    • Average total commercial loan balances grew $398 million, or 4% from the first quarter, and accounted for the majority of this quarter's growth
    • Included in average total commercial loans, mortgage warehouse balances grew $119 million from the first quarter to $272 million
    • Purchased a $99 million participation in the Associated Bank branded credit card portfolio from Elan/US Bank on June 30, 2014
  • Net interest income of $169 million increased $4 million, or 2% from the first quarter, and $9 million, or 5% compared to the year ago quarter
  • Core fee-based revenue increased $3 million, or 6% compared to the prior quarter, and increased $5 million, or 10% from the year ago quarter
  • Noninterest expenses of $168 million were flat compared to the prior quarter 
  • Pretax income of $68 million increased $2 million, or 3% from the first quarter
  • During the second quarter, the Company repurchased $30 million, or approximately 1.7 million shares, of common stock at an average cost of $17.36 per share
    • On July 1, 2014, the Company executed an additional accelerated share repurchase of 1.6 million shares
  • Return on Tier 1 common equity was 9.6% for the second quarter
  • Capital ratios remain strong with a Tier 1 common equity ratio of 10.72% at June 30, 2014

SECOND QUARTER 2014 FINANCIAL RESULTS

Loans

Average loans of $16.6 billion increased $482 million, or 3% from the first quarter, and have increased $919 million on average or 6%, from the year ago quarter. Total average commercial loans grew $398 million, or 4% from the first quarter, and are up $854 million or 9%, from the year ago quarter.  Commercial and business lending average balances grew $338 million, or 6% on a linked-quarter basis.   Within commercial and business lending, the mortgage warehouse portfolio grew an average of $119 million during the quarter and accounted for the largest share of the growth.  Commercial real estate lending average balances grew by $60 million, or 2% from the first quarter.  Total average consumer loans grew $84 million, or 1% from the prior quarter.  Residential mortgage average balances grew $151 million, or 4% from the first quarter.  Home equity and installment loan average balances declined $67 million during the quarter.

On June 30, 2014, the Company purchased a $99 million participation in the Associated Bank branded credit card portfolio from Elan/US Bank, representing 45% of the total outstanding balance.

Deposits

Second quarter average deposits of $17.2 billion increased $183 million, or 1% compared to the first quarter and are up slightly from the year ago quarter.  Money market average balances increased $167 million, or 2% from the first quarter and accounted for the majority of the total average deposit growth.  Average time deposits continued to decline during the second quarter, and have declined $310 million, or 16% from the year ago quarter.

Net Interest Income and Net Interest Margin

Second quarter net interest income of $169 million increased $4 million, or 2% compared to the prior quarter and $9 million, or 5% compared to the year ago quarter.

Second quarter net interest margin was 3.08%, a decrease of 4 basis points from the 3.12% reported in the first quarter and a decrease of 8 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 partially offset by 2 basis points of liability cost management actions.  Total funding costs are now at 29 basis points, and total interest-bearing deposit costs are at 19 basis points, for the second quarter.

Noninterest Income and Expense

Noninterest income for the second quarter was $72 million, down $1 million, or 2% from the first quarter and down $12 million, or 14% from the year ago quarter.  The decrease from the year ago quarter was driven by a $14 million decline in net mortgage banking income.    Core fee-based revenue increased $3 million, or 6% compared to the prior quarter, and increased $5 million, or 10% from the year ago quarter.  All core fee-based revenue categories increased from the first quarter with insurance revenue and service charges accounting for the majority of the growth.   

Total noninterest expense for the quarter ended June 30, 2014 was $168 million, essentially flat to the first quarter.  The efficiency ratio improved to 68% compared to the prior quarter ratio of 69%.  Occupancy expense declined $2 million from the first quarter related to the seasonal decline in contracted services, mainly snow removal.  Technology expenses increased $2 million from the previous quarter.

Taxes

Second quarter income taxes of $22 million were up $1 million from the prior quarter.  The effective tax rate for the second quarter was 32%.

Credit

Nonaccrual loans were up slightly, to $179 million compared to the first quarter, but are down 18% from a year ago.  The ratio of nonaccrual loans to total loans improved from the previous quarter and now stands at 1.05%.  Potential problem loans increased $68 million from the prior quarter related to the downgrade of a small number of credits.

Net charge offs of $3 million for the second quarter were down $3 million from the prior quarter, and are down $11 million from the year ago quarter. The second quarter provision for credit losses of $5 million was flat from the prior quarter.  The Company's allowance for loan losses was $272 million, equal to 1.59% of loans and a coverage ratio of 152% of nonaccrual loans at June 30, 2014.

Capital Ratios

The Company's capital position remains strong, with a Tier 1 common equity ratio of 10.72% at June 30, 2014.  The Company's capital ratios continue to be in excess of the Basel III "well-capitalized" regulatory benchmarks on a fully phased in basis.

SECOND QUARTER 2014 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 17, 2014.  Interested parties can listen to the call live on the internet through the investor relations section of the company's website, https://www.associatedbank.com/investor or by dialing 877-407-8037. 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 201-689-8037. Participants should ask the operator for the Associated Banc-Corp second quarter 2014 earnings call.

An audio archive of the webcast will be available on the company's website at https://www.associatedbank.com/investor approximately fifteen minutes after the call is over.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $26 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance.  Such forward-looking statements may be identified by the use of words such as "believe", "expect", "anticipate", "plan", "estimate", "should", "will", "intend", "outlook", or similar expressions.  Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements.  Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent SEC filings.  Such factors are incorporated herein by reference. 

NON-GAAP FINANCIAL MEASURES

This press release contains references to measures which are not defined in generally accepted accounting principles ("GAAP"), including "efficiency ratio," "Tier 1 common equity", and "core fee-based revenue."  Information concerning these non-GAAP financial measures can be found in the attached tables.

Investor Contact:
Brian Klaus, Senior Vice President, Director of Investor Relations           
920-491-7059

Media Contact:
Cliff Bowers, Senior Vice President, Director of Public Relations
920-491-7542  









Associated Banc-Corp

Consolidated Balance Sheets (Unaudited)


June 30,

March 31,

Seql Qtr

December 31,

September 30,

June 30,

Comp Qtr

(in thousands)

2014

2014

$ Change

2013

2013

2013

$ Change

Assets








Cash and due from banks

$ 549,883

$ 526,951

$ 22,932

$ 455,482

$ 526,009

$ 422,779

$ 127,104

Interest-bearing deposits in other








 financial institutions

78,233

92,071

(13,838)

126,018

277,761

121,390

(43,157)

Federal funds sold and securities purchased








 under agreements to resell

18,135

4,400

13,735

20,745

25,400

10,800

7,335

Securities held to maturity, at amortized cost

246,050

193,759

52,291

175,210

125,095

75,946

170,104

Securities available for sale, at fair value

5,506,379

5,277,908

228,471

5,250,585

4,840,035

4,854,319

652,060

Federal Home Loan Bank and Federal








   Reserve Bank stocks, at cost

186,247

181,360

4,887

181,249

181,129

181,008

5,239

Loans held for sale

78,657

46,529

32,128

64,738

102,052

203,576

(124,919)

Loans

17,045,052

16,441,444

603,608

15,896,261

15,585,854

15,746,599

1,298,453

Allowance for loan losses

(271,851)

(267,916)

(3,935)

(268,315)

(271,724)

(277,218)

5,367

    Loans, net

16,773,201

16,173,528

599,673

15,627,946

15,314,130

15,469,381

1,303,820

Premises and equipment, net

264,735

269,257

(4,522)

270,890

265,636

258,903

5,832

Goodwill

929,168

929,168

-

929,168

929,168

929,168

-

Other intangible assets, net

70,538

72,629

(2,091)

74,464

75,730

74,612

(4,074)

Trading assets

40,630

40,822

(192)

43,728

49,402

49,732

(9,102)

Other assets

985,930

997,815

(11,885)

1,006,697

977,128

965,330

20,600

    Total assets

$ 25,727,786

$ 24,806,197

$ 921,589

$ 24,226,920

$ 23,688,675

$ 23,616,944

$ 2,110,842









Liabilities and Stockholders' Equity








Noninterest-bearing demand deposits

$ 4,211,057

$ 4,478,981

$ (267,924)

$ 4,626,312

$ 4,453,663

$ 4,259,776

$ (48,719)

Interest-bearing deposits

13,105,202

13,030,946

74,256

12,640,855

13,884,245

12,872,660

232,542

    Total deposits

17,316,259

17,509,927

(193,668)

17,267,167

18,337,908

17,132,436

183,823

Federal funds purchased and securities sold








 under agreements to repurchase

959,051

939,254

19,797

475,442

580,479

545,740

413,311

Other short-term funding

1,378,120

308,652

1,069,468

265,484

1,046,401

2,218,760

(840,640)

Long-term funding

2,931,809

2,932,040

(231)

3,087,267

614,568

614,822

2,316,987

Trading liabilities

43,311

43,450

(139)

46,470

52,430

52,598

(9,287)

Accrued expenses and other liabilities

169,290

171,850

(2,560)

193,800

184,607

175,612

(6,322)

    Total liabilities

22,797,840

21,905,173

892,667

21,335,630

20,816,393

20,739,968

2,057,872

Stockholders' Equity








  Preferred equity

61,024

61,158

(134)

61,862

62,737

63,272

(2,248)

  Common stock

1,750

1,750

-

1,750

1,750

1,750

-

  Surplus

1,628,356

1,623,323

5,033

1,617,990

1,614,516

1,610,243

18,113

  Retained earnings

1,432,518

1,402,549

29,969

1,392,508

1,361,498

1,330,737

101,781

  Accumulated other comprehensive








   income (loss)

10,494

(11,577)

22,071

(24,244)

(37,120)

(25,015)

35,509

  Treasury stock

(204,196)

(176,179)

(28,017)

(158,576)

(131,099)

(104,011)

(100,185)

    Total stockholders' equity

2,929,946

2,901,024

28,922

2,891,290

2,872,282

2,876,976

52,970

    Total liabilities and stockholders' equity

$ 25,727,786

$ 24,806,197

$ 921,589

$ 24,226,920

$ 23,688,675

$ 23,616,944

$ 2,110,842

 

 















Associated Banc-Corp

Consolidated Statements of Income (Unaudited)



For The Three Months Ended





For The Six Months Ended






June 30,


Quarter


June 30,


Year-to-Date

(in thousands, except per share amounts)


2014


2013


$ Change

% Change


2014

2013


$ Change

% Change

Interest Income














Interest and fees on loans


$ 146,629


$ 146,896


$ (267)

(0.2%)


$ 290,016

$ 292,423


$ (2,407)

(0.8%)

Interest and dividends on investment securities:














  Taxable


26,109


21,446


4,663

21.7%


52,366

43,059


9,307

21.6%

  Tax-exempt


7,030


6,785


245

3.6%


14,001

13,750


251

1.8%

Other interest


1,862


1,233


629

51.0%


3,311

2,480


831

33.5%

    Total interest income


181,630


176,360


5,270

3.0%


359,694

351,712


7,982

2.3%

Interest Expense














Interest on deposits


6,195


7,769


(1,574)

(20.3%)


12,354

16,310


(3,956)

(24.3%)

Interest on Federal funds purchased and securities














 sold under agreements to repurchase


306


333


(27)

(8.1%)


611

743


(132)

(17.8%)

Interest on other short-term funding


280


525


(245)

(46.7%)


396

857


(461)

(53.8%)

Interest on long-term funding


6,146


7,551


(1,405)

(18.6%)


12,657

15,967


(3,310)

(20.7%)

    Total interest expense


12,927


16,178


(3,251)

(20.1%)


26,018

33,877


(7,859)

(23.2%)

Net Interest Income


168,703


160,182


8,521

5.3%


333,676

317,835


15,841

5.0%

Provision for credit losses


5,000


5,300


(300)

(5.7%)


10,000

8,600


1,400

16.3%

Net interest income after provision for














credit losses


163,703


154,882


8,821

5.7%


323,676

309,235


14,441

4.7%

Noninterest Income














Trust service fees


12,017


11,405


612

5.4%


23,728

22,315


1,413

6.3%

Service charges on deposit accounts


17,412


17,443


(31)

(0.2%)


33,812

34,272


(460)

(1.3%)

Card-based and other nondeposit fees


12,577


12,591


(14)

(0.1%)


25,086

24,541


545

2.2%

Insurance commissions


13,651


9,631


4,020

41.7%


25,968

21,394


4,574

21.4%

Brokerage and annuity commissions


4,520


3,688


832

22.6%


8,553

7,204


1,349

18.7%

  Total core fee-based revenue


60,177


54,758


5,419

9.9%


117,147

109,726


7,421

6.8%

Mortgage banking, net


5,362


19,263


(13,901)

(72.2%)


11,723

37,028


(25,305)

(68.3%)

Capital market fees, net


2,099


5,074


(2,975)

(58.6%)


4,421

7,657


(3,236)

(42.3%)

Bank owned life insurance income


3,011


3,281


(270)

(8.2%)


7,331

6,251


1,080

17.3%

Asset gains (losses), net


899


(44)


943

N/M


1,627

792


835

105.4%

Investment securities gains, net


34


34


-

0.0%


412

334


78

23.4%

Other


665


1,944


(1,279)

(65.8%)


3,107

4,522


(1,415)

(31.3%)

    Total noninterest income


72,247


84,310


(12,063)

(14.3%)


145,768

166,310


(20,542)

(12.4%)

Noninterest Expense














Personnel expense


97,793


99,791


(1,998)

(2.0%)


195,491

197,698


(2,207)

(1.1%)

Occupancy


13,785


14,305


(520)

(3.6%)


29,345

29,967


(622)

(2.1%)

Equipment


6,227


6,462


(235)

(3.6%)


12,503

12,629


(126)

(1.0%)

Technology


14,594


12,651


1,943

15.4%


27,318

24,159


3,159

13.1%

Business development and advertising


5,077


5,028


49

1.0%


10,139

9,565


574

6.0%

Other intangible amortization


991


1,011


(20)

(2.0%)


1,982

2,022


(40)

(2.0%)

Loan expense


3,620


3,044


576

18.9%


6,407

6,328


79

1.2%

Legal and professional fees


4,436


5,483


(1,047)

(19.1%)


8,624

10,828


(2,204)

(20.4%)

Losses other than loans


381


499


(118)

(23.6%)


925

883


42

4.8%

Foreclosure/OREO expense


1,575


2,302


(727)

(31.6%)


3,471

4,724


(1,253)

(26.5%)

FDIC expense


4,945


4,395


550

12.5%


9,946

9,827


119

1.2%

Other


14,501


13,725


776

5.7%


29,432

27,681


1,751

6.3%

    Total noninterest expense


167,925


168,696


(771)

(0.5%)


335,583

336,311


(728)

(0.2%)

Income before income taxes


68,025


70,496


(2,471)

(3.5%)


133,861

139,234


(5,373)

(3.9%)

Income tax expense


21,660


22,608


(948)

(4.2%)


42,297

43,958


(1,661)

(3.8%)

Net income


46,365


47,888


(1,523)

(3.2%)


91,564

95,276


(3,712)

(3.9%)

Preferred stock dividends


1,278


1,300


(22)

(1.7%)


2,522

2,600


(78)

(3.0%)

Net income available to common equity


$ 45,087


$ 46,588


$ (1,501)

(3.2%)


$ 89,042

$ 92,676


$ (3,634)

(3.9%)















Earnings Per Common Share:














  Basic


$ 0.28


$ 0.28


$ -

0.0%


0.55

0.55


$ -

0.0%

  Diluted


$ 0.28


$ 0.28


$ -

0.0%


0.55

0.55


$ -

0.0%















Average Common Shares Outstanding:














  Basic


159,940


166,605


(6,665)

(4.0%)


160,699

167,415


(6,716)

(4.0%)

  Diluted


160,838


166,748


(5,910)

(3.5%)


161,513

167,552


(6,039)

(3.6%)















N/M = Not meaningful

 

 











Associated Banc-Corp

Consolidated Statements of Income (Unaudited) - Quarterly Trend




Sequential Qtr




Comparable Qtr

(in thousands, except per share amounts)

2Q14

1Q14

$ Change

% Change

4Q13

3Q13

2Q13

$ Change

% Change

Interest Income










Interest and fees on loans

$ 146,629

$ 143,387

$ 3,242

2.3%

$ 148,884

$ 146,219

$ 146,896

$ (267)

(0.2%)

Interest and dividends on investment securities:










  Taxable

26,109

26,257

(148)

(0.6%)

24,316

21,544

21,446

4,663

21.7%

  Tax-exempt

7,030

6,971

59

0.8%

6,884

6,711

6,785

245

3.6%

Other interest

1,862

1,449

413

28.5%

1,453

1,260

1,233

629

51.0%

    Total interest income

181,630

178,064

3,566

2.0%

181,537

175,734

176,360

5,270

3.0%

Interest Expense










Interest on deposits

6,195

6,159

36

0.6%

7,340

7,617

7,769

(1,574)

(20.3%)

Interest on Federal funds purchased and










 securities  sold under agreements to repurchase

306

305

1

0.3%

271

308

333

(27)

(8.1%)

Interest on other short-term funding

280

116

164

141.4%

228

434

525

(245)

(46.7%)

Interest on long-term funding

6,146

6,511

(365)

(5.6%)

6,499

6,866

7,551

(1,405)

(18.6%)

    Total interest expense

12,927

13,091

(164)

(1.3%)

14,338

15,225

16,178

(3,251)

(20.1%)

Net Interest Income

168,703

164,973

3,730

2.3%

167,199

160,509

160,182

8,521

5.3%

Provision for credit losses

5,000

5,000

-

0.0%

2,300

(800)

5,300

(300)

(5.7%)

Net interest income after provision for










credit losses

163,703

159,973

3,730

2.3%

164,899

161,309

154,882

8,821

5.7%

Noninterest Income










Trust service fees

12,017

11,711

306

2.6%

11,938

11,380

11,405

612

5.4%

Service charges on deposit accounts

17,412

16,400

1,012

6.2%

17,330

18,407

17,443

(31)

(0.2%)

Card-based and other nondeposit fees

12,577

12,509

68

0.5%

12,684

12,688

12,591

(14)

(0.1%)

Insurance commissions

13,651

12,317

1,334

10.8%

11,274

11,356

9,631

4,020

41.7%

Brokerage and annuity commissions

4,520

4,033

487

12.1%

3,881

3,792

3,688

832

22.6%

  Total core fee-based revenue

60,177

56,970

3,207

5.6%

57,107

57,623

54,758

5,419

9.9%

Mortgage banking, net

5,362

6,361

(999)

(15.7%)

8,277

3,542

19,263

(13,901)

(72.2%)

Capital market fees, net

2,099

2,322

(223)

(9.6%)

2,771

2,652

5,074

(2,975)

(58.6%)

Bank owned life insurance income

3,011

4,320

(1,309)

(30.3%)

2,787

2,817

3,281

(270)

(8.2%)

Asset gains (losses), net

899

728

171

23.5%

2,687

1,934

(44)

943

N/M

Investment securities gains (losses), net

34

378

(344)

(91.0%)

(18)

248

34

-

0.0%

Other

665

2,442

(1,777)

(72.8%)

2,262

2,100

1,944

(1,279)

(65.8%)

    Total noninterest income

72,247

73,521

(1,274)

(1.7%)

75,873

70,916

84,310

(12,063)

(14.3%)

Noninterest Expense










Personnel expense

97,793

97,698

95

0.1%

101,215

98,102

99,791

(1,998)

(2.0%)

Occupancy

13,785

15,560

(1,775)

(11.4%)

14,684

14,758

14,305

(520)

(3.6%)

Equipment

6,227

6,276

(49)

(0.8%)

6,509

6,213

6,462

(235)

(3.6%)

Technology

14,594

12,724

1,870

14.7%

12,963

12,323

12,651

1,943

15.4%

Business development and advertising

5,077

5,062

15

0.3%

7,834

5,947

5,028

49

1.0%

Other intangible amortization

991

991

-

0.0%

1,011

1,010

1,011

(20)

(2.0%)

Loan expense

3,620

2,787

833

29.9%

3,677

3,157

3,044

576

18.9%

Legal and professional fees

4,436

4,188

248

5.9%

5,916

3,482

5,483

(1,047)

(19.1%)

Losses other than loans

381

544

(163)

(30.0%)

1,559

(600)

499

(118)

(23.6%)

Foreclosure/OREO expense

1,575

1,896

(321)

(16.9%)

2,829

2,515

2,302

(727)

(31.6%)

FDIC expense

4,945

5,001

(56)

(1.1%)

4,879

4,755

4,395

550

12.5%

Other

14,501

14,931

(430)

(2.9%)

16,091

13,509

13,725

776

5.7%

    Total noninterest expense

167,925

167,658

267

0.2%

179,167

165,171

168,696

(771)

(0.5%)

Income before income taxes

68,025

65,836

2,189

3.3%

61,605

67,054

70,496

(2,471)

(3.5%)

Income tax expense

21,660

20,637

1,023

5.0%

13,847

21,396

22,608

(948)

(4.2%)

Net income

46,365

45,199

1,166

2.6%

47,758

45,658

47,888

(1,523)

(3.2%)

Preferred stock dividends

1,278

1,244

34

2.7%

1,273

1,285

1,300

(22)

(1.7%)

Net income available to common equity

$ 45,087

$ 43,955

$ 1,132

2.6%

$ 46,485

$ 44,373

$ 46,588

$ (1,501)

(3.2%)











Earnings Per Common Share:










  Basic

$ 0.28

$ 0.27

$ 0.01

3.7%

$ 0.28

$ 0.27

$ 0.28

$ -

0.0%

  Diluted

$ 0.28

$ 0.27

$ 0.01

3.7%

$ 0.28

$ 0.27

$ 0.28

$ -

0.0%











Average Common Shares Outstanding:










  Basic

159,940

161,467

(1,527)

(0.9%)

162,611

164,954

166,605

(6,665)

(4.0%)

  Diluted

160,838

162,188

(1,350)

(0.8%)

163,235

165,443

166,748

(5,910)

(3.5%)











N/M = Not meaningful.

 

 


Associated Banc-Corp

Selected Quarterly Information

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

YTD 2014

YTD 2013

2nd Qtr 2014

1st Qtr 2014

4th Qtr 2013

3rd Qtr 2013

2nd Qtr 2013

Per Common Share Data








Dividends

$ 0.18

$ 0.16

$ 0.09

$ 0.09

$ 0.09

$ 0.08

$ 0.08

Market Value:








  High

18.39

15.69

18.39

18.35

17.56

17.60

15.69

  Low

15.58

13.46

16.82

15.58

15.34

15.29

13.81

  Close

18.08

15.55

18.08

18.06

17.40

15.49

15.55

Book value

17.99

16.97

17.99

17.64

17.40

17.10

16.97

Tier 1 common equity / share

12.04

11.42

12.04

11.88

11.77

11.59

11.42

Tangible book value / share

$ 12.11

$ 11.28

$ 12.11

$ 11.80

$ 11.62

$ 11.37

$ 11.28









Performance Ratios (annualized)








Return on average assets

0.75%

0.83%

0.75%

0.76%

0.80%

0.78%

0.82%

Return on average tangible common equity

9.51

9.78

9.56

9.45

9.87

9.48

9.76

Return on average Tier 1 common equity (1)

9.52

10.00

9.56

9.38

9.78

9.31

9.94

Effective tax rate

31.60

31.57

31.84

31.35

22.48

31.91

32.07

Dividend payout ratio (3)

32.73

29.09

32.14

33.33

32.14

29.63

28.57









Average Balances








Common stockholders' equity

$ 2,828,478

$ 2,853,995

$ 2,830,007

$ 2,826,933

$ 2,810,130

$ 2,799,885

$ 2,857,722

Average Tier 1 common equity (1)

$ 1,885,179

$ 1,868,696

$ 1,891,766

$ 1,899,535

$ 1,885,377

$ 1,890,398

$ 1,880,826









Selected Trend Information








Average full time equivalent employees

4,474

4,816

4,431

4,517

4,584

4,699

4,790

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

$ 7,720

$ 6,894

$ 7,720

$ 7,535

$ 7,424

$ 7,078

$ 6,894

Total revenue (4)

$ 488,757

$ 494,231

$ 245,607

$ 243,150

$ 248,110

$ 236,373

$ 249,488

Core fee-based revenue (5)

$ 117,147

$ 109,726

$ 60,177

$ 56,970

$ 57,107

$ 57,623

$ 54,758

Mortgage loans originated for sale during period

$ 479,449

$ 1,463,808

$ 275,685

$ 203,764

$ 326,648

$ 513,549

$ 782,398

Mortgage portfolio serviced for others ($ in millions)

$ 8,052

$ 7,794

$ 8,052

$ 8,084

$ 8,084

$ 8,014

$ 7,794

Mortgage servicing rights, net / Portfolio serviced for others

0.76%

0.79%

0.76%

0.77%

0.78%

0.79%

0.79%









At Period End








Loans / deposits



98.43%

93.90%

92.06%

84.99%

91.91%

Risk weighted assets ($ in millions) (6) (7)



$ 17,911

$ 17,075

$ 16,694

$ 16,359

$ 16,479

Tier 1 common equity (1)



$ 1,919,651

$ 1,912,083

$ 1,913,320

$ 1,904,060

$ 1,893,875

Stockholders' equity / assets



11.39%

11.69%

11.93%

12.13%

12.18%

Tangible common equity / tangible assets (8)



7.79%

7.96%

8.11%

8.21%

8.25%

Tangible equity / tangible assets (8)



8.03%

8.22%

8.38%

8.49%

8.53%

Tier 1 common equity / risk-weighted assets (6) (7)



10.72%

11.20%

11.46%

11.64%

11.49%

Tier 1 leverage ratio (6) (7)



8.26%

8.46%

8.70%

8.76%

8.73%

Tier 1 risk-based capital ratio (6) (7)



11.06%

11.56%

11.83%

12.02%

11.88%

Total risk-based capital ratio (6) (7)



12.31%

12.81%

13.09%

13.44%

13.29%

Shares outstanding, end of period



159,480

161,012

162,623

164,303

165,837









Non-GAAP Financial Measures Reconciliation








Efficiency ratio (2)

70.05%

69.51%

69.70%

70.41%

73.70%

71.45%

69.01%

Taxable equivalent adjustment

(1.34)

(1.42)

(1.32)

(1.35)

(1.49)

(1.50)

(1.38)

Asset gains (losses), net

0.24

0.12

0.26

0.22

0.80

0.59

(0.01)

Other intangible amortization

(0.41)

(0.42)

(0.41)

(0.42)

(0.42)

(0.44)

(0.41)

Efficiency ratio, fully taxable equivalent (2)

68.54%

67.79%

68.23%

68.86%

72.59%

70.10%

67.21%









(1) Tier 1 common equity, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of our capital with the capital of other financial services companies. Management uses Tier 1 common equity, along with other capital measures, to assess and monitor our capital position.  Tier 1 common equity (period end and average) is Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities.

(2) Efficiency ratio is defined by the Federal Reserve guidance as noninterest expense divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net.  Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and asset gains / losses, net.  This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and investment securities.  Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net).

(3) Ratio is based upon basic earnings per common share.

(4) Total revenue, a non-GAAP financial measure, is the sum of taxable equivalent net interest income, core fee-based revenues, and other noninterest income categories, as presented on Page 2 in the Consolidated Statements of Income and Page 6 in the Net Interest Income Analysis.

(5) Core fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions, as presented on Page 2 in the Consolidated Statements of Income.

(6) June 30, 2014 data is estimated.

(7) The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation.  The OCC establishes similar capital adequacy requirements and standards for the Bank.  Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital.  The sum of Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital.  Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets.  Risk-weighted assets consist of total assets plus certain off-balance sheet and market items, subject to adjustment for predefined credit risk factors.

(8) Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure.  These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.

 

 

Associated Banc-Corp

Selected Asset Quality Information



Jun14 vs Mar14





Jun14 vs Jun13

(in thousands)

Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Allowance for Loan Losses









Beginning balance

$ 267,916

$ 268,315

(0.1%)


$ 271,724

$ 277,218

$ 286,923

(6.6%)

Provision for loan losses

6,500

5,000

30.0%


2,000

-

4,000

62.5%

Charge offs

(9,107)

(11,361)

(19.8%)


(18,742)

(20,288)

(21,904)

(58.4%)

Recoveries

6,542

5,962

9.7%


13,333

14,794

8,199

(20.2%)

Net charge offs

(2,565)

(5,399)

(52.5%)


(5,409)

(5,494)

(13,705)

(81.3%)

Ending balance

$ 271,851

$ 267,916

1.5%


$ 268,315

$ 271,724

$ 277,218

(1.9%)

Allowance for Unfunded Commitments









Beginning balance

$ 21,900

$ 21,900

0.0%


$ 21,600

$ 22,400

$ 21,100

3.8%

Provision for unfunded commitments

(1,500)

-

N/M


300

(800)

1,300

(215.4%)

Ending balance

$ 20,400

$ 21,900

(6.8%)


$ 21,900

$ 21,600

$ 22,400

(8.9%)

Allowance for credit losses

$ 292,251

$ 289,816

0.8%


$ 290,215

$ 293,324

$ 299,618

(2.5%)










Net Charge Offs



Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Commercial and industrial

$ (1,377)

$ 2,725

(150.5%)


$ 4,555

$ (447)

$ 1,477

(193.2%)

Commercial real estate - owner occupied

(550)

(124)

343.5%


967

2,076

1,574

(134.9%)

Lease financing

29

-

N/M


(16)

-

16

81.3%

  Commercial and business lending

(1,898)

2,601

(173.0%)


5,506

1,629

3,067

(161.9%)

Commercial real estate - investor

(239)

(1,031)

(76.8%)


137

(414)

2,999

(108.0%)

Real estate construction

795

113

N/M


(3,130)

(303)

(95)

N/M

  Commercial real estate lending

556

(918)

(160.6%)


(2,993)

(717)

2,904

(80.9%)

    Total commercial

(1,342)

1,683

(179.7%)


2,513

912

5,971

(122.5%)

Home equity revolving lines of credit

1,380

1,182

16.8%


966

767

2,512

(45.1%)

Home equity loans 1st liens

448

406

10.3%


372

564

954

(53.0%)

Home equity loans junior liens

948

859

10.4%


1,111

800

2,034

(53.4%)

  Home equity

2,776

2,447

13.4%


2,449

2,131

5,500

(49.5%)

Installment and credit cards

247

113

118.6%


(611)

124

66

274.2%

Residential mortgage

884

1,156

(23.5%)


1,058

2,327

2,168

(59.2%)

  Total consumer

3,907

3,716

5.1%


2,896

4,582

7,734

(49.5%)

        Total net charge offs

$ 2,565

$ 5,399

(52.5%)


$ 5,409

$ 5,494

$ 13,705

(81.3%)










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

Jun 30, 2014

Mar 31, 2014



Dec 31, 2013

Sep 30, 2013

Jun 30, 2013


Commercial and industrial

(10)

22



38

(4)

13


Commercial real estate - owner occupied

(20)

(5)



34

72

54


Lease financing

22

-



(12)

-

12


  Commercial and business lending

(12)

17



37

11

21


Commercial real estate - investor

(3)

(14)



2

(6)

41


Real estate construction

33

5



(145)

(15)

(5)


  Commercial real estate lending

6

(10)



(32)

(8)

31


    Total commercial

(5)

7



10

4

25


Home equity revolving lines of credit

64

55



44

34

112


Home equity loans 1st liens

26

23



19

27

42


Home equity loans junior liens

196

171



205

140

336


  Home equity

64

55



52

44

108


Installment and credit cards

25

11



(59)

11

6


Residential mortgage

9

12



11

25

24


  Total consumer

25

25



19

30

50


        Total net charge offs

6

14



14

14

35











Credit Quality



Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Nonaccrual loans

$ 179,226

$ 177,978

0.7%


$ 185,428

$ 207,594

$ 217,493

(17.6%)

Other real estate owned (OREO)

17,729

19,173

(7.5%)


18,118

25,077

27,407

(35.3%)

    Total nonperforming assets

$ 196,955

$ 197,151

(0.1%)


$ 203,546

$ 232,671

$ 244,900

(19.6%)










Loans 90 or more days past due and still accruing

$ 1,776

$ 723

145.6%


$ 2,350

$ 2,063

$ 1,548

14.7%










Allowance for loan losses / loans

1.59%

1.63%



1.69%

1.74%

1.76%


Allowance for loan losses / nonaccrual loans

151.68

150.53



144.70

130.89

127.46


Nonaccrual loans / total loans

1.05

1.08



1.17

1.33

1.38


Nonperforming assets / total loans plus OREO

1.15

1.20



1.28

1.49

1.55


Nonperforming assets / total assets

0.77

0.79



0.84

0.98

1.04


Net charge offs / average loans (annualized)

0.06

0.14



0.14

0.14

0.35


Year-to-date net charge offs / average loans

0.10

0.14



0.25

0.29

0.36











Nonaccrual loans by type:









Commercial and industrial

$ 40,846

$ 38,488

6.1%


$ 37,719

$ 36,105

$ 30,302

34.8%

Commercial real estate - owner occupied

31,725

26,735

18.7%


29,664

28,301

24,003

32.2%

Lease financing

1,541

172

N/M


69

99

72

N/M

  Commercial and business lending

74,112

65,395

13.3%


67,452

64,505

54,377

36.3%

Commercial real estate - investor

28,135

33,611

(16.3%)


37,596

49,841

60,780

(53.7%)

Real estate construction

6,988

6,667

4.8%


6,467

18,670

21,419

(67.4%)

  Commercial real estate lending

35,123

40,278

(12.8%)


44,063

68,511

82,199

(57.3%)

    Total commercial

109,235

105,673

3.4%


111,515

133,016

136,576

(20.0%)

Home equity revolving lines of credit

10,056

10,356

(2.9%)


11,883

11,991

12,940

(22.3%)

Home equity loans 1st liens

4,634

5,341

(13.2%)


6,135

6,131

7,898

(41.3%)

Home equity loans junior liens

6,183

6,788

(8.9%)


7,149

7,321

7,296

(15.3%)

  Home equity

20,873

22,485

(7.2%)


25,167

25,443

28,134

(25.8%)

Installment and credit cards

771

915

(15.7%)


1,114

1,269

1,533

(49.7%)

Residential mortgage

48,347

48,905

(1.1%)


47,632

47,866

51,250

(5.7%)

  Total consumer

69,991

72,305

(3.2%)


73,913

74,578

80,917

(13.5%)

        Total nonaccrual loans

$ 179,226

$ 177,978

0.7%


$ 185,428

$ 207,594

$ 217,493

(17.6%)



















* Annualized.









N/M = Not meaningful.

 

 

Associated Banc-Corp

Selected Asset Quality Information (continued)



Jun14 vs Mar14





Jun14 vs Jun13

(in thousands)

Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Restructured loans (accruing)









Commercial and industrial

$ 28,849

$ 27,776

3.9%


$ 32,517

$ 32,145

$ 30,970

(6.8%)

Commercial real estate - owner occupied

12,168

11,579

5.1%


13,009

14,425

14,336

(15.1%)

  Commercial and business lending

41,017

39,355

4.2%


45,526

46,570

45,306

(9.5%)

Commercial real estate - investor

41,758

46,020

(9.3%)


44,946

35,073

37,299

12.0%

Real estate construction

1,224

2,954

(58.6%)


3,793

4,825

5,365

(77.2%)

  Commercial real estate lending

42,982

48,974

(12.2%)


48,739

39,898

42,664

0.7%

    Total commercial

83,999

88,329

(4.9%)


94,265

86,468

87,970

(4.5%)

Home equity revolving lines of credit

1,527

1,178

29.6%


1,117

1,118

1,130

35.1%

Home equity loans 1st liens

1,674

1,656

1.1%


1,436

1,628

1,684

(0.6%)

Home equity loans junior liens

7,243

6,738

7.5%


7,080

7,113

7,119

1.7%

  Home equity

10,444

9,572

9.1%


9,633

9,859

9,933

5.1%

Installment and credit cards

1,185

225

426.7%


246

416

570

107.9%

Residential mortgage

18,753

18,798

(0.2%)


19,841

20,300

20,593

(8.9%)

  Total consumer

30,382

28,595

6.2%


29,720

30,575

31,096

(2.3%)

        Total restructured loans (accruing)

$ 114,381

$ 116,924

(2.2%)


$ 123,985

$ 117,043

$ 119,066

(3.9%)










Restructured loans in nonaccrual loans (not included above)

$ 72,388

$ 74,231

(2.5%)


$ 59,585

$ 69,311

$ 70,354

2.9%



















Loans Past Due 30-89 Days



Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Commercial and industrial

$ 2,519

$ 4,126

(38.9%)


$ 6,826

$ 6,518

$ 8,516

(70.4%)

Commercial real estate - owner occupied

6,323

5,342

18.4%


3,106

8,505

8,105

(22.0%)

Lease financing

556

567

(1.9%)


-

1,000

57

N/M

  Commercial and business lending

9,398

10,035

(6.3%)


9,932

16,023

16,678

(43.7%)

Commercial real estate - investor

2,994

7,188

(58.3%)


23,215

21,747

18,269

(83.6%)

Real estate construction

258

679

(62.0%)


1,954

820

797

(67.6%)

  Commercial real estate lending

3,252

7,867

(58.7%)


25,169

22,567

19,066

(82.9%)

    Total commercial

12,650

17,902

(29.3%)


35,101

38,590

35,744

(64.6%)

Home equity revolving lines of credit

6,986

5,344

30.7%


6,728

6,318

7,739

(9.7%)

Home equity loans 1st liens

1,685

1,469

14.7%


1,110

1,376

1,857

(9.3%)

Home equity loans junior liens

2,138

3,006

(28.9%)


2,842

2,206

2,709

(21.1%)

  Home equity

10,809

9,819

10.1%


10,680

9,900

12,305

(12.2%)

Installment and credit cards

1,734

1,269

36.6%


1,150

1,170

1,434

20.9%

Residential mortgage

7,070

4,498

57.2%


6,118

6,722

9,920

(28.7%)

  Total consumer

19,613

15,586

25.8%


17,948

17,792

23,659

(17.1%)

        Total loans past due 30-89 days

$ 32,263

$ 33,488

(3.7%)


$ 53,049

$ 56,382

$ 59,403

(45.7%)



















Potential Problem Loans



Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Commercial and industrial

$ 187,251

$ 109,027

71.7%


$ 113,669

$ 112,947

$ 127,382

47.0%

Commercial real estate - owner occupied

57,757

64,785

(10.8%)


56,789

61,256

75,074

(23.1%)

Lease financing

2,280

3,065

(25.6%)


1,784

207

279

N/M

  Commercial and business lending

247,288

176,877

39.8%


172,242

174,410

202,735

22.0%

Commercial real estate - investor

31,903

34,790

(8.3%)


52,429

87,526

89,342

(64.3%)

Real estate construction

4,473

4,870

(8.2%)


5,263

7,540

9,184

(51.3%)

  Commercial real estate lending

36,376

39,660

(8.3%)


57,692

95,066

98,526

(63.1%)

    Total commercial

283,664

216,537

31.0%


229,934

269,476

301,261

(5.8%)

Home equity revolving lines of credit

277

310

(10.6%)


303

170

308

(10.1%)

Home equity loans junior liens

822

741

10.9%


1,810

2,067

2,307

(64.4%)

  Home equity

1,099

1,051

4.6%


2,113

2,237

2,615

(58.0%)

Installment and credit cards

844

-

N/M


50

67

83

N/M

Residential mortgage

2,445

2,091

16.9%


3,312

5,342

5,917

(58.7%)

  Total consumer

4,388

3,142

39.7%


5,475

7,646

8,615

(49.1%)

        Total potential problem loans

$ 288,052

$ 219,679

31.1%


$ 235,409

$ 277,122

$ 309,876

(7.0%)



















N/M = Not meaningful.

 

 

Associated Banc-Corp

Net Interest Income Analysis - Taxable Equivalent Basis

Sequential Quarter

Three months ended June 30, 2014


Three months ended March 31, 2014


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

$ 6,468,844

$ 53,519

3.32%


$ 6,131,185

$ 51,681

3.42%

      Commercial real estate lending

3,967,848

36,309

3.67


3,907,363

35,591

3.69

         Total commercial

10,436,692

89,828

3.45


10,038,548

87,272

3.52

      Residential mortgage

4,077,617

33,575

3.29


3,926,734

32,664

3.33

      Retail

2,132,080

24,157

4.54


2,199,335

24,413

4.48

         Total loans

16,646,389

147,560

3.55


16,164,617

144,349

3.61

      Investment securities (1)

5,606,279

36,865

2.63


5,450,066

36,922

2.71

      Other short-term investments

284,847

1,862

2.62


277,820

1,449

2.09

         Investments and other

5,891,126

38,727

2.63


5,727,886

38,371

2.68

Total earning assets

22,537,515

$ 186,287

3.31


21,892,503

$ 182,720

3.36

   Other assets, net

2,320,557




2,320,710



Total assets

$ 24,858,072




$ 24,213,213











Interest-bearing liabilities:








   Savings deposits

$ 1,267,297

$ 242

0.08%


$ 1,195,337

$ 220

0.07%

   Interest-bearing demand deposits

2,894,446

969

0.13


2,796,247

823

0.12

   Money market deposits

7,340,244

2,928

0.16


7,173,106

2,825

0.16

   Time deposits

1,597,535

2,056

0.52


1,659,277

2,291

0.56

      Total interest-bearing deposits

13,099,522

6,195

0.19


12,823,967

6,159

0.19

   Federal funds purchased and securities sold under








   agreements to repurchase

847,756

306

0.14


805,187

305

0.15

   Other short-term funding

832,299

280

0.13


328,516

116

0.14

   Long-term funding

2,931,957

6,146

0.84


3,004,520

6,511

0.87

      Total short and long-term funding

4,612,012

6,732

0.58


4,138,223

6,932

0.67

Total interest-bearing liabilities

17,711,534

$ 12,927

0.29


16,962,190

$ 13,091

0.31

   Noninterest-bearing demand deposits

4,073,310




4,166,305



   Other liabilities

182,110




195,950



   Stockholders' equity

2,891,118




2,888,768



Total liabilities and stockholders' equity

$ 24,858,072




$ 24,213,213











Net interest income and rate spread


$ 173,360

3.02%



$ 169,629

3.05%

Net interest margin



3.08%




3.12%

Taxable equivalent adjustment


$ 4,657




$ 4,656










Net Interest Income Analysis - Taxable Equivalent Basis



Comparable Quarter

Three months ended June 30, 2014


Three months ended June 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

$ 6,468,844

$ 53,519

3.32%


$ 5,860,416

$ 53,613

3.67%

      Commercial real estate lending

3,967,848

36,309

3.67


3,722,108

35,804

3.86

         Total commercial

10,436,692

89,828

3.45


9,582,524

89,417

3.74

      Residential mortgage

4,077,617

33,575

3.29


3,661,742

30,113

3.29

      Retail

2,132,080

24,157

4.54


2,483,541

28,291

4.56

         Total loans

16,646,389

147,560

3.55


15,727,807

147,821

3.77

      Investment securities (1)

5,606,279

36,865

2.63


4,917,671

32,302

2.63

      Other short-term investments

284,847

1,862

2.62


305,766

1,233

1.61

         Investments and other

5,891,126

38,727

2.63


5,223,437

33,535

2.57

Total earning assets

22,537,515

$ 186,287

3.31


20,951,244

$ 181,356

3.47

   Other assets, net

2,320,557




2,354,976



Total assets

$ 24,858,072




$ 23,306,220











Interest-bearing liabilities:








   Savings deposits

$ 1,267,297

$ 242

0.08%


$ 1,207,959

$ 236

0.08%

   Interest-bearing demand deposits

2,894,446

969

0.13


2,867,524

1,190

0.17

   Money market deposits

7,340,244

2,928

0.16


6,930,554

3,239

0.19

   Time deposits

1,597,535

2,056

0.52


1,907,337

3,104

0.65

      Total interest-bearing deposits

13,099,522

6,195

0.19


12,913,374

7,769

0.24

   Federal funds purchased and securities sold under








   agreements to repurchase

847,756

306

0.14


677,489

333

0.20

   Other short-term funding

832,299

280

0.13


1,631,644

525

0.13

   Long-term funding

2,931,957

6,146

0.84


765,514

7,551

3.95

      Total short and long-term funding

4,612,012

6,732

0.58


3,074,647

8,409

1.09

Total interest-bearing liabilities

17,711,534

$ 12,927

0.29


15,988,021

$ 16,178

0.41

   Noninterest-bearing demand deposits

4,073,310




4,191,704



   Other liabilities

182,110




205,501



   Stockholders' equity

2,891,118




2,920,994



Total liabilities and stockholders' equity

$ 24,858,072




$ 23,306,220











Net interest income and rate spread


$ 173,360

3.02%



$ 165,178

3.06%

Net interest margin



3.08%




3.16%

Taxable equivalent adjustment


$ 4,657




$ 4,996










(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

Six months ended June 30, 2014


Six months ended June 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

$ 6,300,948

$ 105,199

3.37%


$ 5,738,404

$ 104,325

3.66%

      Commercial real estate lending

3,937,772

71,900

3.68


3,657,667

71,668

3.95

         Total commercial

10,238,720

177,099

3.49


9,396,071

175,993

3.77

      Residential mortgage

4,002,592

66,239

3.31


3,642,207

60,595

3.33

      Retail

2,165,522

48,570

4.51


2,550,474

57,672

4.55

         Total loans

16,406,834

291,908

3.58


15,588,752

294,260

3.80

      Investment securities (1)

5,528,604

73,788

2.67


4,904,764

65,058

2.65

      Other short-term investments

281,353

3,311

2.36


323,312

2,480

1.54

         Investments and other

5,809,957

77,099

2.65


5,228,076

67,538

2.58

Total earning assets

22,216,791

369,007

3.34


20,816,828

361,798

3.49

   Other assets, net

2,320,633




2,356,375



Total assets

$ 24,537,424




$ 23,173,203











Interest-bearing liabilities:








   Savings deposits

$ 1,231,516

$ 462

0.08%


$ 1,175,053

$ 444

0.08%

   Interest-bearing demand deposits

2,845,618

1,792

0.13


2,823,969

2,369

0.17

   Money market deposits

7,257,137

5,752

0.16


6,987,134

6,854

0.20

   Time deposits

1,628,235

4,348

0.54


1,950,631

6,643

0.69

      Total interest-bearing deposits

12,962,506

12,354

0.19


12,936,787

16,310

0.25

   Federal funds purchased and securities sold under








   agreements to repurchase

826,589

611

0.15


728,238

743

0.21

   Other short-term funding

581,799

396

0.14


1,326,792

857

0.13

   Long-term funding

2,968,038

12,657

0.85


862,627

15,967

3.71

      Total short and long-term funding

4,376,426

13,664

0.63


2,917,657

17,567

1.21

Total interest-bearing liabilities

17,338,932

26,018

0.30


15,854,444

33,877

0.43

   Noninterest-bearing demand deposits

4,119,551




4,188,830



   Other liabilities

188,992




212,662



   Stockholders' equity

2,889,949




2,917,267



Total liabilities and stockholders' equity

$ 24,537,424




$ 23,173,203











Net interest income and rate spread


$ 342,989

3.04%



$ 327,921

3.06%

Net interest margin



3.10%




3.17%

Taxable equivalent adjustment


$ 9,313




$ 10,086










(1) The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions.

(2) Nonaccrual loans and loans held for sale have been included in the average balances.


(3) Interest income includes net loan fees.

 

 

Associated Banc-Corp

Financial Summary and Comparison

Period End Loan Composition



 Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Commercial and industrial

$ 5,616,205

$ 5,222,141

7.5%


$ 4,822,680

$ 4,703,056

$ 4,752,838

18.2%

Commercial real estate - owner occupied

1,070,463

1,098,089

(2.5%)


1,114,715

1,147,352

1,174,866

(8.9%)

Lease financing

51,873

52,500

(1.2%)


55,483

51,727

55,084

(5.8%)

  Commercial and business lending

6,738,541

6,372,730

5.7%


5,992,878

5,902,135

5,982,788

12.6%

Commercial real estate - investor

2,990,732

3,001,219

(0.3%)


2,939,456

2,847,152

3,010,992

(0.7%)

Real estate construction

1,000,421

969,617

3.2%


896,248

834,744

800,569

25.0%

  Commercial real estate lending

3,991,153

3,970,836

0.5%


3,835,704

3,681,896

3,811,561

4.7%

  Total commercial

10,729,694

10,343,566

3.7%


9,828,582

9,584,031

9,794,349

9.5%

Home equity revolving lines of credit

866,042

856,679

1.1%


874,840

875,703

888,162

(2.5%)

Home equity loans 1st liens

659,598

705,835

(6.6%)


742,120

794,912

863,779

(23.6%)

Home equity loans junior liens

187,732

199,488

(5.9%)


208,054

220,763

234,292

(19.9%)

  Home equity

1,713,372

1,762,002

(2.8%)


1,825,014

1,891,378

1,986,233

(13.7%)

Installment and credit cards

469,203

393,321

19.3%


407,074

420,268

434,029

8.1%

Residential mortgage

4,132,783

3,942,555

4.8%


3,835,591

3,690,177

3,531,988

17.0%

    Total consumer

6,315,358

6,097,878

3.6%


6,067,679

6,001,823

5,952,250

6.1%

Total loans

$17,045,052

$16,441,444

3.7%


$ 15,896,261

$ 15,585,854

$15,746,599

8.2%



















Period End Deposit and Customer Funding Composition

 Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Noninterest-bearing demand

$ 4,211,057

$ 4,478,981

(6.0%)


$ 4,626,312

$ 4,453,663

$ 4,259,776

(1.1%)

Savings

1,275,493

1,252,669

1.8%


1,159,512

1,195,944

1,211,567

5.3%

Interest-bearing demand

2,918,900

3,084,457

(5.4%)


2,889,705

2,735,529

2,802,277

4.2%

Money market

7,348,650

7,069,173

4.0%


6,906,442

8,199,281

7,040,317

4.4%

Brokered CDs

44,809

51,235

(12.5%)


50,450

56,024

59,206

(24.3%)

Other time

1,517,350

1,573,412

(3.6%)


1,634,746

1,697,467

1,759,293

(13.8%)

  Total deposits

17,316,259

17,509,927

(1.1%)


17,267,167

18,337,908

17,132,436

1.1%

Customer repo sweeps

489,886

548,179

(10.6%)


419,247

515,555

489,700

0.0%

    Total deposits and customer funding

$17,806,145

$18,058,106

(1.4%)


$ 17,686,414

$ 18,853,463

$17,622,136

1.0%










Network transaction deposits included  above in interest-bearing









demand and money market

$ 2,238,923

$ 2,141,976

4.5%


$ 1,936,403

$ 2,222,810

$ 2,135,306

4.9%

Brokered CDs

44,809

51,235

(12.5%)


50,450

56,024

59,206

(24.3%)

    Total network and brokered funding

2,283,732

2,193,211

4.1%


1,986,853

2,278,834

2,194,512

4.1%










    Net customer deposits and funding (1)

$15,522,413

$15,864,895

(2.2%)


$ 15,699,561

$ 16,574,629

$15,427,624

0.6%










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



















Quarter Average Loan Composition


 Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Commercial and industrial

$ 5,335,488

$ 4,983,943

7.1%


$ 4,709,435

$ 4,680,582

$ 4,635,892

15.1%

Commercial real estate - owner occupied

1,081,552

1,093,114

(1.1%)


1,119,186

1,142,919

1,169,124

(7.5%)

Lease financing

51,804

54,128

(4.3%)


53,817

53,244

55,400

(6.5%)

  Commercial and business lending

6,468,844

6,131,185

5.5%


5,882,438

5,876,745

5,860,416

10.4%

Commercial real estate - investor

3,014,827

2,993,046

0.7%


2,878,176

2,940,115

2,951,524

2.1%

Real estate construction

953,021

914,317

4.2%


858,138

828,780

770,584

23.7%

  Commercial real estate lending

3,967,848

3,907,363

1.5%


3,736,314

3,768,895

3,722,108

6.6%

  Total commercial

10,436,692

10,038,548

4.0%


9,618,752

9,645,640

9,582,524

8.9%

Home equity revolving lines of credit

866,952

868,614

(0.2%)


876,938

882,478

896,931

(3.3%)

Home equity loans 1st liens

681,607

724,995

(6.0%)


767,857

826,653

902,554

(24.5%)

Home equity loans junior liens

193,727

203,984

(5.0%)


214,557

227,021

242,796

(20.2%)

  Home equity

1,742,286

1,797,593

(3.1%)


1,859,352

1,936,152

2,042,281

(14.7%)

Installment and credit cards

389,794

401,742

(3.0%)


413,236

428,114

441,260

(11.7%)

Residential mortgage

4,077,617

3,926,734

3.8%


3,856,944

3,714,459

3,661,742

11.4%

  Total consumer

6,209,697

6,126,069

1.4%


6,129,532

6,078,725

6,145,283

1.0%

Total loans

$16,646,389

$16,164,617

3.0%


$ 15,748,284

$ 15,724,365

$15,727,807

5.8%



















Quarter Average Deposit Composition



 Jun14 vs Mar14





Jun14 vs Jun13


Jun 30, 2014

Mar 31, 2014

% Change


Dec 31, 2013

Sep 30, 2013

Jun 30, 2013

% Change

Noninterest-bearing demand

$ 4,073,310

$ 4,166,305

(2.2%)


$ 4,353,315

$ 4,264,304

$ 4,191,704

(2.8%)

Savings

1,267,297

1,195,337

6.0%


1,200,338

1,204,743

1,207,959

4.9%

Interest-bearing demand

2,894,446

2,796,247

3.5%


2,852,090

2,810,962

2,867,524

0.9%

Money market

7,340,244

7,173,106

2.3%


7,748,650

7,556,050

6,930,554

5.9%

Time deposits

1,597,535

1,659,277

(3.7%)


1,727,138

1,773,760

1,907,337

(16.2%)

  Total deposits

$17,172,832

$16,990,272

1.1%


$17,881,531

$17,609,819

$17,105,078

0.4%










 

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