Associated Reports Third Quarter Earnings of $0.27 per share

Earnings Per Share up 11% year over year

Oct 17, 2013, 16:05 ET from Associated Banc-Corp

GREEN BAY, Wis., Oct. 17, 2013 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported earnings per share of $0.27 for the quarter ended September 30, 2013. This compares to $0.26 per common share, for the quarter ended September 30, 2012.

For the first nine months of 2013, Associated reported earnings per share of $0.82 per common share.  This compares to $0.74 per common share, for the comparable year ago period.

"Despite one percent average loan growth in commercial and mortgage lending, continued run-off in home equity, in mortgage warehouse, and in installment loans contributed to flat overall loans.  Even with the expected downturn in mortgage banking income, we were pleased to deliver value to shareholders through solid execution in other areas and expense discipline," said President and CEO Philip B. Flynn.  "We remain focused on our strategies to enhance efficiency and on opportunities for capital deployment."

HIGHLIGHTS   

  • Average loans were flat from the second quarter
    • 1% growth in commercial and industrial, commercial real estate and residential mortgages; principally offset by continued declines in home equity and installment loans
  • Strong average deposit growth of 3% from the second quarter and 13% from a year ago to $17.6 billion
  • Mortgage banking income declined 82% from the second quarter
  • Net interest margin decreased 3 basis points from the prior quarter while net interest income was up slightly
  • Noninterest expenses of $164 million declined $6 million or 3% from the second quarter
  • Net income to common shareholders of $44 million for the third quarter declined 5% from the second quarter and YTD 2013 net income of $137 million was 7% more than the comparable year ago period
  • Credit quality continued to improve with net charge offs, nonaccrual loans, past due loans and potential problem loans all declining quarter over quarter
  • During the third quarter, the Company repurchased $30 million, or approximately 1.8 million shares
    • On October 4, 2013, the Company executed an additional accelerated share repurchase of 1.8 million shares
  • YTD 2013 return on Tier 1 common equity was 9.8%, compared to 9.4% for the prior year period
  • Capital ratios remain very strong with a Tier 1 common equity ratio of 11.64%

THIRD QUARTER 2013 FINANCIAL RESULTS

Loans

Average loans of $15.7 billion were flat from the second quarter but increased $808 million, or 5%, from the year ago quarter.  Commercial real estate lending average balances grew by $47 million, or 1% on a linked-quarter basis.  The residential mortgage portfolio average balances grew by $53 million, or 1%, during the quarter.  Commercial and business lending average balances increased slightly from the prior quarter.   This growth was entirely offset by continued run off in home equity and installment loan balances, which experienced an average balance decline of $119 million, or 5%, during the quarter.

Deposits

Average deposits of $17.6 billion were up $505 million, or 3% compared to the second quarter and have increased by $2.0 billion, or 13%, from the year ago quarter.  Average money market balances grew $625 million or 9% during the quarter and were partially offset by declines in time deposits of $134 million.  Checking and savings balances were flat quarter over quarter.

Net Interest Income and Net Interest Margin

Third quarter net interest income of $161 million increased slightly compared to the prior quarter and was up $5 million, or 3% compared to the year ago quarter. 

Third quarter net interest margin was 3.13%, a decrease of 3 basis points from the 3.16% reported in the second quarter and a decrease of 13 basis points from a year ago.  The decrease from the second quarter was the result of a 5 basis point decline in asset yields which was partially offset by liability cost management actions. 

Noninterest Income and Expense

Noninterest income for the quarter was $71 million, down $13 million, or 16%, from the second quarter and $10 million or 12% from the year ago quarter.   Mortgage banking income declined $16 million, or 82% from the prior quarter driven by lower loan volumes and gain on sales.  In addition, second quarter mortgage banking income benefited from an $8 million increase in mortgage servicing rights valuation.  Core fee revenue increased $3 million or 5% from the prior quarter, as insurance commissions, service charges, brokerage commissions, and non-deposit fees, all improved during the quarter.  A $2 million increase in asset gains and losses was primarily related to a real estate transaction.

Total noninterest expense for the quarter ended September 30, 2013 was $164 million, down $6 million, or 3%, from the second quarter.  Losses other than loans were $3 million lower than the second quarter mainly due to a more favorable than expected resolution of a litigation matter and decreases in unfunded commitment reserves.  Legal and professional fees declined $2 million from the prior quarter as BSA consultant expenses are largely complete.   Personnel expense decreased $2 million from the second quarter as the Company continues to reduce full time equivalent (FTE) employee counts, which stand at their lowest levels since mid 2010. 

Credit

The Company reported another quarter of improving credit quality with nonaccrual loans down 5%, to $208 million compared to the second quarter, and down 25% from a year ago.  The ratio of nonaccrual loans to total loans now stands at 1.33% and has improved for the 14th consecutive quarter.

Net charge offs of $5 million for the third quarter were down $8 million from the second quarter, primarily attributable to an $8 million loan recovery. 

With slower loan growth coupled with improved asset quality metrics, the Company's third quarter provision for loan losses was $0, compared to $4 million in the second quarter.  The Company's allowance for loan losses was $272 million, representing an allowance equal to 1.74% of loans and representing a coverage ratio of 131% of nonaccrual loans at September 30, 2013.

Capital Ratios

The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.64% at September 30, 2013.  The Company's capital ratios continue to be well in excess of both current and proposed "well-capitalized" regulatory benchmarks.

THIRD 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, October 17, 2013.  Interested parties can listen to the call live on the internet through the investor relations section of the company's website, http://investor.associatedbank.com or by dialing 888-317-6016. The slide presentation for the call will be available on the company's website just prior to the call. The number for international callers is 412-317-6016. Participants should ask the operator for the Associated Banc-Corp third quarter 2013 earnings call.

An audio archive of the webcast will be available on the company's website at http://investor.associatedbank.com.  A telephone replay will be available one hour after the completion of the call through 8:00 a.m. CT on November 18, 2013, by dialing 877-344-7529 and entering the conference ID number 10034040. The replay number for international callers is 412-317-0088.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $24 billion and is one of the top 50, publicly traded, U.S. bank holding companies.  Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services through approximately 240 banking locations serving more than 150 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC.  More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

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

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

Media Contact: Jennifer Kaminski, Vice President, Public Relations 920-491-7576

 

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp

September 30,

June 30,

Seql Qtr

March 31,

December 31,

September 30,

Comp Qtr

(in thousands)

2013

2013

$ Change

2013

2012

2012

$ Change

Assets

Cash and due from banks

$       526,009

$    422,779

$   103,230

$    336,247

$      563,304

$      419,529

$  106,480

Interest-bearing deposits in other

 financial institutions

277,761

121,390

156,371

82,555

147,434

531,303

(253,542)

Federal funds sold and securities purchased

 under agreements to resell

25,400

10,800

14,600

8,600

27,135

2,460

22,940

Securities held to maturity, at amortized cost

125,095

75,946

49,149

54,123

39,877

21,852

103,243

Securities available for sale, at fair value

4,840,035

4,854,319

(14,284)

4,950,317

4,926,758

4,496,198

343,837

Federal Home Loan Bank and Federal 

   Reserve Bank stocks, at cost

181,129

181,008

121

152,490

166,774

166,100

15,029

Loans held for sale

102,052

203,576

(101,524)

173,389

261,410

157,093

(55,041)

Loans

15,585,854

15,746,599

(160,745)

15,551,562

15,411,022

14,966,214

619,640

Allowance for loan losses

(271,724)

(277,218)

5,494

(286,923)

(297,409)

(315,150)

43,426

    Loans, net

15,314,130

15,469,381

(155,251)

15,264,639

15,113,613

14,651,064

663,066

Premises and equipment, net

265,636

258,903

6,733

254,674

253,958

238,756

26,880

Goodwill

929,168

929,168

-

929,168

929,168

929,168

-

Other intangible assets, net

75,730

74,612

1,118

66,294

61,176

61,294

14,436

Trading assets

49,402

49,732

(330)

65,014

70,711

76,159

(26,757)

Other assets

977,128

965,330

11,798

940,258

926,417

987,378

(10,250)

    Total assets

$  23,688,675

23,616,944

$     71,731

23,277,768

$ 23,487,735

$ 22,738,354

$  950,321

Liabilities and Stockholders' Equity

Noninterest-bearing demand deposits

$    4,453,663

4,259,776

$   193,887

4,453,109

$   4,759,556

$   4,320,437

$  133,226

Interest-bearing deposits

13,884,245

12,872,660

1,011,585

12,968,185

12,180,309

12,130,155

1,754,090

    Total deposits

18,337,908

17,132,436

1,205,472

17,421,294

16,939,865

16,450,592

1,887,316

Federal funds purchased and securities sold

 under agreements to repurchase

580,479

545,740

34,739

730,855

750,455

1,138,027

(557,548)

Other short-term funding

1,046,401

2,218,760

(1,172,359)

1,038,697

1,576,484

615,258

431,143

Long-term funding

614,568

614,822

(254)

915,063

1,015,346

1,305,422

(690,854)

Trading liabilities

52,430

52,598

(168)

70,236

76,343

82,861

(30,431)

Accrued expenses and other liabilities

184,607

175,612

8,995

165,358

192,843

195,742

(11,135)

    Total liabilities

20,816,393

20,739,968

76,425

20,341,503

20,551,336

19,787,902

1,028,491

Stockholders' Equity

  Preferred equity

62,737

63,272

(535)

63,272

63,272

63,272

(535)

  Common stock

1,750

1,750

-

1,750

1,750

1,750

-

  Surplus

1,614,516

1,610,243

4,273

1,605,966

1,602,136

1,599,070

15,446

  Retained earnings

1,361,498

1,330,737

30,761

1,297,692

1,281,811

1,250,189

111,309

  Accumulated other comprehensive income (loss)

(37,120)

(25,015)

(12,105)

42,991

48,603

67,303

(104,423)

  Treasury stock

(131,099)

(104,011)

(27,088)

(75,406)

(61,173)

(31,132)

(99,967)

    Total stockholders' equity

2,872,282

2,876,976

(4,694)

2,936,265

2,936,399

2,950,452

(78,170)

    Total liabilities and stockholders' equity

$  23,688,675

23,616,944

$     71,731

23,277,768

$ 23,487,735

$ 22,738,354

$  950,321

 

 

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp

For The Three Months Ended

For The Nine Months Ended

September 30,

Quarter

September 30,

Year-to-Date

(in thousands, except per share amounts)

2013

2012

$ Change

% Change

2013

2012

$ Change

% Change

Interest Income

Interest and fees on loans

$ 146,219

$ 149,647

$ (3,428)

(2.3%)

$ 438,642

$ 445,858

$ (7,216)

(1.6%)

Interest and dividends on investment securities:

  Taxable

21,544

20,548

996

4.8%

64,603

66,577

(1,974)

(3.0%)

  Tax-exempt

6,711

7,127

(416)

(5.8%)

20,461

21,536

(1,075)

(5.0%)

Other interest 

1,260

1,334

(74)

(5.5%)

3,740

3,843

(103)

(2.7%)

    Total interest income

175,734

178,656

(2,922)

(1.6%)

527,446

537,814

(10,368)

(1.9%)

Interest Expense

Interest on deposits 

7,617

9,751

(2,134)

(21.9%)

23,927

32,340

(8,413)

(26.0%)

Interest on Federal funds purchased and securities 

 sold under agreements to repurchase

308

750

(442)

(58.9%)

1,051

2,129

(1,078)

(50.6%)

Interest on other short-term funding

434

815

(381)

(46.7%)

1,291

3,068

(1,777)

(57.9%)

Interest on long-term funding

6,866

11,738

(4,872)

(41.5%)

22,833

35,740

(12,907)

(36.1%)

    Total interest expense

15,225

23,054

(7,829)

(34.0%)

49,102

73,277

(24,175)

(33.0%)

Net Interest Income

160,509

155,602

4,907

3.2%

478,344

464,537

13,807

3.0%

Provision for loan losses

-

-

-

N/M

8,000

-

8,000

N/M

Net interest income after provision for 

 loan losses

160,509

155,602

4,907

3.2%

470,344

464,537

5,807

1.3%

Noninterest Income

Trust service fees

11,380

10,396

984

9.5%

33,695

30,308

3,387

11.2%

Service charges on deposit accounts

18,407

17,290

1,117

6.5%

52,679

52,100

579

1.1%

Card-based and other nondeposit fees

12,688

12,209

479

3.9%

37,229

35,172

2,057

5.8%

Insurance commissions

11,356

11,650

(294)

(2.5%)

32,750

36,152

(3,402)

(9.4%)

Brokerage and annuity commissions

3,792

3,632

160

4.4%

10,996

11,965

(969)

(8.1%)

  Total core fee-based revenue

57,623

55,177

2,446

4.4%

167,349

165,697

1,652

1.0%

Mortgage banking, net

3,542

15,581

(12,039)

(77.3%)

40,570

49,970

(9,400)

(18.8%)

Capital market fees, net

2,652

3,609

(957)

(26.5%)

10,309

9,998

311

3.1%

Bank owned life insurance income

2,817

3,290

(473)

(14.4%)

9,068

10,746

(1,678)

(15.6%)

Asset gains (losses), net

1,934

(3,309)

5,243

(158.4%)

2,726

(11,887)

14,613

(122.9%)

Investment securities gains, net

248

3,506

(3,258)

(92.9%)

582

4,109

(3,527)

(85.8%)

Other

2,100

3,134

(1,034)

(33.0%)

6,622

6,752

(130)

(1.9%)

    Total noninterest income

70,916

80,988

(10,072)

(12.4%)

237,226

235,385

1,841

0.8%

Noninterest Expense

Personnel expense

98,102

95,231

2,871

3.0%

295,800

283,331

12,469

4.4%

Occupancy 

14,758

14,334

424

3.0%

44,725

43,521

1,204

2.8%

Equipment 

6,213

5,935

278

4.7%

18,842

17,122

1,720

10.0%

Data processing

12,323

11,022

1,301

11.8%

36,482

31,842

4,640

14.6%

Business development and advertising

5,947

5,059

888

17.6%

15,512

15,908

(396)

(2.5%)

Other intangible amortization

1,010

1,048

(38)

(3.6%)

3,032

3,146

(114)

(3.6%)

Loan expense

3,157

3,297

(140)

(4.2%)

9,485

9,155

330

3.6%

Legal and professional fees

3,482

7,686

(4,204)

(54.7%)

14,310

23,058

(8,748)

(37.9%)

Losses other than loans

(1,400)

3,577

(4,977)

(139.1%)

83

9,187

(9,104)

(99.1%)

Foreclosure/OREO expense

2,515

4,071

(1,556)

(38.2%)

7,239

11,776

(4,537)

(38.5%)

FDIC expense

4,755

5,017

(262)

(5.2%)

14,582

14,665

(83)

(0.6%)

Other

13,509

13,426

83

0.6%

41,190

42,784

(1,594)

(3.7%)

    Total noninterest expense

164,371

169,703

(5,332)

(3.1%)

501,282

505,495

(4,213)

(0.8%)

Income before income taxes

67,054

66,887

167

0.2%

206,288

194,427

11,861

6.1%

Income tax expense 

21,396

20,492

904

4.4%

65,354

62,082

3,272

5.3%

Net income

45,658

46,395

(737)

(1.6%)

140,934

132,345

8,589

6.5%

Preferred stock dividends

1,285

1,300

(15)

(1.2%)

3,885

3,900

(15)

(0.4%)

Net income available to common equity

$   44,373

$   45,095

$    (722)

(1.6%)

$ 137,049

$ 128,445

$  8,604

6.7%

Earnings Per Common Share:

  Basic

$       0.27

$       0.26

$    0.01

3.8%

$       0.82

$       0.74

$    0.08

10.8%

  Diluted

$       0.27

$       0.26

$    0.01

3.8%

$       0.82

$       0.74

$    0.08

10.8%

Average Common Shares Outstanding:

  Basic

164,954

171,650

(6,696)

(3.9%)

166,586

172,774

(6,189)

(3.6%)

  Diluted

165,443

171,780

(6,337)

(3.7%)

166,760

172,848

(6,088)

(3.5%)

N/M = Not meaningful.

 

 

Consolidated Statements of Income (Unaudited) - Quarterly Trend

Associated Banc-Corp

Sequential Qtr

Comparable Qtr

(in thousands, except per share amounts)

3Q13

2Q13

$ Change

% Change

1Q13

4Q12

3Q12

$ Change

% Change

Interest Income

Interest and fees on loans

$ 146,219

$ 146,896

$    (677)

(0.5%)

$ 145,527

$ 150,107

$ 149,647

$ (3,428)

(2.3%)

Interest and dividends on investment securities:

  Taxable

21,544

21,446

98

0.5%

21,613

20,368

20,548

996

4.8%

  Tax-exempt

6,711

6,785

(74)

(1.1%)

6,965

7,119

7,127

(416)

(5.8%)

Other interest 

1,260

1,233

27

2.2%

1,247

2,876

1,334

(74)

(5.5%)

    Total interest income

175,734

176,360

(626)

(0.4%)

175,352

180,470

178,656

(2,922)

(1.6%)

Interest Expense

Interest on deposits 

7,617

7,769

(152)

(2.0%)

8,541

9,091

9,751

(2,134)

(21.9%)

Interest on Federal funds purchased and securities 

 sold under agreements to repurchase

308

333

(25)

(7.5%)

410

558

750

(442)

(58.9%)

Interest on other short-term funding

434

525

(91)

(17.3%)

332

226

815

(381)

(46.7%)

Interest on long-term funding

6,866

7,551

(685)

(9.1%)

8,416

9,140

11,738

(4,872)

(41.5%)

    Total interest expense

15,225

16,178

(953)

(5.9%)

17,699

19,015

23,054

(7,829)

(34.0%)

Net Interest Income

160,509

160,182

327

0.2%

157,653

161,455

155,602

4,907

3.2%

Provision for loan losses

-

4,000

(4,000)

(100.0%)

4,000

3,000

-

-

N/M

Net interest income after provision for 

 loan losses

160,509

156,182

4,327

2.8%

153,653

158,455

155,602

4,907

3.2%

Noninterest Income

Trust service fees

11,380

11,405

(25)

(0.2%)

10,910

10,429

10,396

984

9.5%

Service charges on deposit accounts

18,407

17,443

964

5.5%

16,829

16,817

17,290

1,117

6.5%

Card-based and other nondeposit fees

12,688

12,591

97

0.8%

11,950

12,690

12,209

479

3.9%

Insurance commissions

11,356

9,631

1,725

17.9%

11,763

10,862

11,650

(294)

(2.5%)

Brokerage and annuity commissions

3,792

3,688

104

2.8%

3,516

3,678

3,632

160

4.4%

  Total core fee-based revenue

57,623

54,758

2,865

5.2%

54,968

54,476

55,177

2,446

4.4%

Mortgage banking, net

3,542

19,263

(15,721)

(81.6%)

17,765

13,530

15,581

(12,039)

(77.3%)

Capital market fees, net

2,652

5,074

(2,422)

(47.7%)

2,583

4,243

3,609

(957)

(26.5%)

Bank owned life insurance income

2,817

3,281

(464)

(14.1%)

2,970

3,206

3,290

(473)

(14.4%)

Asset gains (losses), net

1,934

(44)

1,978

N/M

836

(209)

(3,309)

5,243

(158.4%)

Investment securities gains, net

248

34

214

N/M

300

152

3,506

(3,258)

(92.9%)

Other

2,100

1,944

156

8.0%

2,578

2,507

3,134

(1,034)

(33.0%)

    Total noninterest income

70,916

84,310

(13,394)

(15.9%)

82,000

77,905

80,988

(10,072)

(12.4%)

Noninterest Expense

Personnel expense

98,102

99,791

(1,689)

(1.7%)

97,907

98,073

95,231

2,871

3.0%

Occupancy 

14,758

14,305

453

3.2%

15,662

17,273

14,334

424

3.0%

Equipment 

6,213

6,462

(249)

(3.9%)

6,167

6,444

5,935

278

4.7%

Data processing

12,323

12,651

(328)

(2.6%)

11,508

11,706

11,022

1,301

11.8%

Business development and advertising

5,947

5,028

919

18.3%

4,537

5,395

5,059

888

17.6%

Other intangible amortization

1,010

1,011

(1)

(0.1%)

1,011

1,049

1,048

(38)

(3.6%)

Loan expense

3,157

3,044

113

3.7%

3,284

3,130

3,297

(140)

(4.2%)

Legal and professional fees

3,482

5,483

(2,001)

(36.5%)

5,345

8,174

7,686

(4,204)

(54.7%)

Losses other than loans

(1,400)

1,799

(3,199)

(177.8%)

(316)

3,071

3,577

(4,977)

(139.1%)

Foreclosure/OREO expense

2,515

2,302

213

9.3%

2,422

3,293

4,071

(1,556)

(38.2%)

FDIC expense

4,755

4,395

360

8.2%

5,432

4,813

5,017

(262)

(5.2%)

Other

13,509

13,725

(216)

(1.6%)

13,956

13,907

13,426

83

0.6%

    Total noninterest expense

164,371

169,996

(5,625)

(3.3%)

166,915

176,328

169,703

(5,332)

(3.1%)

Income before income taxes

67,054

70,496

(3,442)

(4.9%)

68,738

60,032

66,887

167

0.2%

Income tax expense 

21,396

22,608

(1,212)

(5.4%)

21,350

13,404

20,492

904

4.4%

Net income

45,658

47,888

(2,230)

(4.7%)

47,388

46,628

46,395

(737)

(1.6%)

Preferred stock dividends

1,285

1,300

(15)

(1.2%)

1,300

1,300

1,300

(15)

(1.2%)

Net income available to common equity

$   44,373

$   46,588

$ (2,215)

(4.8%)

$   46,088

$   45,328

$   45,095

$    (722)

(1.6%)

Earnings Per Common Share:

  Basic

$       0.27

$       0.28

$   (0.01)

(3.6%)

$       0.27

$       0.26

$       0.26

$    0.01

3.8%

  Diluted

$       0.27

$       0.28

$   (0.01)

(3.6%)

$       0.27

$       0.26

$       0.26

$    0.01

3.8%

Average Common Shares Outstanding:

  Basic

164,954

166,605

(1,651)

(1.0%)

168,234

170,707

171,650

(6,696)

(3.9%)

  Diluted

165,443

166,748

(1,305)

(0.8%)

168,404

170,896

171,780

(6,337)

(3.7%)

N/M = Not meaningful.

 

 

Selected Quarterly Information

Associated Banc-Corp

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

YTD 2013

YTD 2012

3rd Qtr 2013

2nd Qtr 2013

1st Qtr 2013

4th Qtr 2012

3rd Qtr 2012

Per Common Share Data 

Dividends

$          0.24

$          0.15

$          0.08

$           0.08

$          0.08

$          0.08

$          0.05

Market Value:

  High

$        17.60

$        14.63

$        17.60

$         15.69

$        15.30

$        13.54

$        13.79

  Low

13.46

11.43

15.29

13.81

13.46

12.19

12.04

  Close

15.49

13.16

15.49

15.55

15.19

13.12

13.16

Book value

17.10

16.82

17.10

16.97

17.13

16.97

16.82

Tier 1 common equity / share

11.59

10.89

11.59

11.42

11.22

11.08

10.89

Tangible book value / share

11.37

11.31

11.37

11.28

11.51

11.39

11.31

Performance Ratios (annualized)

Return on average assets

0.81

%

0.81

%

0.78

%

0.82

%

0.83

%

0.83

%

0.84

%

Return on average tangible common equity

9.68

9.02

9.48

9.76

9.81

9.15

9.32

Return on average Tier 1 common equity (1)

9.77

9.39

9.31

9.94

10.07

9.61

9.69

Effective tax rate

31.68

31.93

31.91

32.07

31.06

22.33

30.64

Dividend payout ratio (3)

29.27

20.27

29.63

28.57

29.63

30.77

19.23

Average Balances

Common stockholders' equity

$ 2,835,760

$ 2,849,876

$ 2,799,885

$  2,857,722

$ 2,850,227

$ 2,915,346

$ 2,870,438

Average Tier 1 common equity (1)

1,876,009

1,826,270

1,890,398

1,880,826

1,856,431

1,876,686

1,850,610

Selected trend information

Average full time equivalent employees

4,776

4,987

4,699

4,790

4,841

4,915

4,965

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

$        7,078

$        6,163

$        7,078

$         6,894

$        6,913

$        6,454

$        6,163

Mortgage loans originated for sale during period

1,977,357

2,016,963

513,549

782,398

681,410

780,469

715,184

Mortgage portfolio serviced for others ($ in millions)

8,014

7,547

8,014

7,794

7,585

7,453

7,547

Mortgage servicing rights, net / Portfolio serviced for others

0.79%

0.60%

0.79%

0.79%

0.69%

0.62%

0.60%

At Period End

Loans / deposits

84.99%

91.91%

89.27%

90.97%

90.98%

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

16,359

16,479

16,163

16,149

15,575

Tier 1 common equity (1)

1,904,060

1,893,875

1,881,410

1,875,534

1,869,931

Stockholders' equity / assets

12.13%

12.18%

12.61%

12.50%

12.98%

Tangible common equity / tangible assets (5)

8.21%

8.25%

8.64%

8.56%

8.91%

Tangible equity / tangible assets (5)

8.49%

8.53%

8.92%

8.84%

9.20%

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

11.64%

11.49%

11.64%

11.61%

12.01%

Tier 1 leverage ratio (4) (6)

8.76%

8.73%

8.78%

8.98%

9.99%

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

12.02%

11.88%

12.03%

12.01%

13.57%

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

13.44%

13.29%

13.45%

13.42%

15.00%

Shares outstanding, end of period

164,303

165,837

167,673

169,304

171,657

Non-GAAP financial measures & reconciliation

Efficiency ratio (2)

70.11

%

72.65

%

71.10

%

69.54

%

69.74

%

73.71

%

72.81

%

Taxable equivalent adjustment

(1.44)

(1.62)

(1.49)

(1.39)

(1.46)

(1.57)

(1.61)

Asset gains (losses), net

0.26

(1.16)

0.58

(0.01)

0.24

(0.06)

(0.98)

Other intangible amortization

(0.42)

(0.44)

(0.44)

(0.41)

(0.42)

(0.43)

(0.43)

Efficiency ratio, fully taxable equivalent (2)

68.51

%

69.43

%

69.75

%

67.73

%

68.10

%

71.65

%

69.79

%

(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 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) September 30, 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.

 

Selected Asset Quality Information

Associated Banc-Corp

Sep13 vs Jun13

Sep13 vs Sep12

(in thousands)

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Allowance for Loan Losses

Beginning balance

$       277,218

$       286,923

(3.4%)

$         279,409

$        315,150

$       332,658

(16.7%)

Provision for loan losses

-

4,000

N/M

4,000

3,000

-

N/M

Charge offs

(20,288)

(21,904)

(7.4%)

(27,128)

(30,417)

(25,030)

(18.9%)

Recoveries

14,794

8,199

80.4%

12,642

9,676

7,522

96.7%

Net charge offs

(5,494)

(13,705)

(59.9%)

(14,486)

(20,741)

(17,508)

(68.6%)

Ending balance

$       271,724

$       277,218

(2.0%)

$         286,923

$        297,409

$       315,150

(13.8%)

Reserve for losses on unfunded commitments

$         21,600

$         22,400

(3.6%)

$           21,100

$          21,800

$         19,800

9.1%

Net Charge Offs

Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Commercial and industrial

$             (447)

$           1,477

(130.3%)

$                696

$            2,630

$           3,831

(111.7%)

Commercial real estate - owner occupied

2,076

1,574

31.9%

1,518

2,056

(8)

N/M

Lease financing

-

16

(100.0%)

(12)

754

(20)

N/M

  Commercial and business lending

1,629

3,067

(46.9%)

2,202

5,440

3,803

(57.2%)

Commercial real estate - investor

(414)

2,999

(113.8%)

163

(232)

1,905

(121.7%)

Real estate construction

(303)

(95)

218.9%

1,392

858

(187)

62.0%

  Commercial real estate lending

(717)

2,904

(124.7%)

1,555

626

1,718

(141.7%)

    Total commercial

912

5,971

(84.7%)

3,757

6,066

5,521

(83.5%)

Home equity revolving lines of credit

767

2,512

(69.5%)

3,615

3,590

4,180

(81.7%)

Home equity loans 1st liens

564

954

(40.9%)

765

1,060

1,056

(46.6%)

Home equity loans junior liens

800

2,034

(60.7%)

1,957

3,421

2,686

(70.2%)

  Home equity 

2,131

5,500

(61.3%)

6,337

8,071

7,922

(73.1%)

Installment

124

66

87.9%

177

1,027

324

(61.7%)

Residential mortgage

2,327

2,168

7.3%

4,215

5,577

3,741

(37.8%)

  Total consumer

4,582

7,734

(40.8%)

10,729

14,675

11,987

(61.8%)

        Total net charge offs

$           5,494

$         13,705

(59.9%)

$           14,486

$          20,741

$         17,508

(68.6%)

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

Sep 30, 2013

Jun 30, 2013

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

Commercial and industrial

(4)

13

6

25

37

Commercial real estate - owner occupied

72

54

51

69

(0)

Lease financing

-

12

(8)

480

(13)

  Commercial and business lending

11

21

16

40

29

Commercial real estate - investor

(6)

41

2

(3)

27

Real estate construction

(15)

(5)

82

54

(12)

  Commercial real estate lending

(8)

31

18

7

20

    Total commercial

4

25

17

27

25

Home equity revolving lines of credit

34

112

159

148

167

Home equity loans 1st liens

27

42

32

40

38

Home equity loans junior liens

140

336

303

486

361

  Home equity 

44

108

119

140

132

Installment

11

6

16

86

26

Residential mortgage

25

24

47

64

45

  Total consumer

30

50

70

93

77

        Total net charge offs

14

35

38

55

47

Credit Quality

Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Nonaccrual loans

$       207,594

$       217,493

(4.6%)

$         225,436

$        252,868

$       278,172

(25.4%)

Other real estate owned (OREO)

25,077

27,407

(8.5%)

35,156

34,900

36,053

(30.4%)

    Total nonperforming assets

$       232,671

$       244,900

(5.0%)

$         260,592

$        287,768

$       314,225

(26.0%)

Loans 90 or more days past due and still accruing

2,063

1,548

33.3%

5,690

2,289

2,334

(11.6%)

Restructured loans (accruing)

117,043

119,066

(1.7%)

120,093

121,087

135,791

(13.8%)

Allowance for loan losses / loans

1.74%

1.76%

1.84%

1.93%

2.11%

Allowance for loan losses / nonaccrual loans

130.89

127.46

127.27

117.61

113.29

Nonaccrual loans / total loans

1.33

1.38

1.45

1.64

1.86

Nonperforming assets / total loans plus OREO

1.49

1.55

1.67

1.86

2.09

Nonperforming assets / total assets

0.98

1.04

1.12

1.23

1.38

Net charge offs / average loans (annualized)

0.14

0.35

0.38

0.55

0.47

Year-to-date net charge offs / average loans

0.29

0.36

0.38

0.57

0.58

Nonaccrual loans by type:

Commercial and industrial

$         36,105

$         30,302

19.2%

$           33,242

$          39,182

$         41,694

(13.4%)

Commercial real estate - owner occupied

28,301

24,003

17.9%

23,199

24,254

27,161

4.2%

Lease financing

99

72

37.5%

2,165

3,031

5,927

(98.3%)

  Commercial and business lending

64,505

54,377

18.6%

58,606

66,467

74,782

(13.7%)

Commercial real estate - investor

49,841

60,780

(18.0%)

56,776

58,687

71,522

(30.3%)

Real estate construction

18,670

21,419

(12.8%)

22,166

27,302

31,684

(41.1%)

  Commercial real estate lending

68,511

82,199

(16.7%)

78,942

85,989

103,206

(33.6%)

    Total commercial

133,016

136,576

(2.6%)

137,548

152,456

177,988

(25.3%)

Home equity revolving lines of credit

11,991

12,940

(7.3%)

15,914

20,446

19,242

(37.7%)

Home equity loans 1st liens

6,131

7,898

(22.4%)

8,626

8,717

9,425

(34.9%)

Home equity loans junior liens

7,321

7,296

0.3%

9,405

10,052

9,800

(25.3%)

  Home equity 

25,443

28,134

(9.6%)

33,945

39,215

38,467

(33.9%)

Installment

1,269

1,533

(17.2%)

1,762

1,838

2,893

(56.1%)

Residential mortgage

47,866

51,250

(6.6%)

52,181

59,359

58,824

(18.6%)

  Total consumer

74,578

80,917

(7.8%)

87,888

100,412

100,184

(25.6%)

        Total nonaccrual loans

$       207,594

$       217,493

(4.6%)

$         225,436

$        252,868

$       278,172

(25.4%)

* Annualized.

N/M = Not meaningful.

 

 

Selected Asset Quality Information (continued)

Associated Banc-Corp

Sep13 vs Jun13

Sep13 vs Sep12

(in thousands)

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Restructured loans (accruing)

Commercial and industrial

$         32,145

$         30,970

3.8%

$          29,251

$         28,140

$         35,015

(8.2%)

Commercial real estate - owner occupied

14,425

14,336

0.6%

12,888

13,852

15,706

(8.2%)

Lease financing

-

-

N/M

-

-

-

N/M

  Commercial and business lending

46,570

45,306

2.8%

42,139

41,992

50,721

(8.2%)

Commercial real estate - investor

35,073

37,299

(6.0%)

41,253

41,660

49,249

(28.8%)

Real estate construction

4,825

5,365

(10.1%)

5,540

4,530

3,561

35.5%

  Commercial real estate lending

39,898

42,664

(6.5%)

46,793

46,190

52,810

(24.4%)

    Total commercial

86,468

87,970

(1.7%)

88,932

88,182

103,531

(16.5%)

Home equity revolving lines of credit

1,118

1,130

(1.1%)

880

867

803

39.2%

Home equity loans 1st liens

1,628

1,684

(3.3%)

1,783

1,930

1,904

(14.5%)

Home equity loans junior liens

7,113

7,119

(0.1%)

6,893

7,171

6,760

5.2%

  Home equity 

9,859

9,933

(0.7%)

9,556

9,968

9,467

4.1%

Installment

416

570

(27.0%)

664

653

672

(38.1%)

Residential mortgage

20,300

20,593

(1.4%)

20,941

22,284

22,121

(8.2%)

  Total consumer

30,575

31,096

(1.7%)

31,161

32,905

32,260

(5.2%)

        Total restructured loans (accruing)

$       117,043

$       119,066

(1.7%)

$        120,093

$       121,087

$       135,791

(13.8%)

Restructured loans in nonaccrual loans (not included above)

$         69,311

$         70,354

(1.5%)

$          67,811

$         80,590

$         74,251

(6.7%)

Loans Past Due 30-89 Days

Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Commercial and industrial

$           6,518

$           8,516

(23.5%)

$          10,263

$         11,339

$           3,795

71.8%

Commercial real estate - owner occupied

8,505

8,105

4.9%

6,804

11,053

4,843

75.6%

Lease financing

1,000

57

N/M

283

12

17

N/M

  Commercial and business lending

16,023

16,678

(3.9%)

17,350

22,404

8,655

85.1%

Commercial real estate - investor

21,747

18,269

19.0%

25,201

13,472

8,809

146.9%

Real estate construction

820

797

2.9%

2,287

3,155

1,254

(34.6%)

  Commercial real estate lending

22,567

19,066

18.4%

27,488

16,627

10,063

124.3%

    Total commercial

38,590

35,744

8.0%

44,838

39,031

18,718

106.2%

Home equity revolving lines of credit

6,318

7,739

(18.4%)

1,832

7,829

9,543

(33.8%)

Home equity loans 1st liens

1,376

1,857

(25.9%)

1,869

1,457

1,535

(10.4%)

Home equity loans junior liens

2,206

2,709

(18.6%)

2,848

4,252

3,745

(41.1%)

  Home equity 

9,900

12,305

(19.5%)

6,549

13,538

14,823

(33.2%)

Installment

1,170

1,434

(18.4%)

2,500

2,109

1,693

(30.9%)

Residential mortgage

6,722

9,920

(32.2%)

8,793

9,403

6,878

(2.3%)

  Total consumer

17,792

23,659

(24.8%)

17,842

25,050

23,394

(23.9%)

        Total loans past due 30-89 days

$         56,382

$         59,403

(5.1%)

$          62,680

$         64,081

$         42,112

33.9%

Potential Problem Loans

Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Commercial and industrial

$       112,947

$       127,382

(11.3%)

$        127,367

$       128,434

$       120,888

(6.6%)

Commercial real estate - owner occupied

61,256

75,074

(18.4%)

93,098

99,592

120,034

(49.0%)

Lease financing

207

279

(25.8%)

251

264

214

(3.3%)

  Commercial and business lending

174,410

202,735

(14.0%)

220,716

228,290

241,136

(27.7%)

Commercial real estate - investor

87,526

89,342

(2.0%)

101,775

107,068

133,046

(34.2%)

Real estate construction

7,540

9,184

(17.9%)

10,040

13,092

18,477

(59.2%)

  Commercial real estate lending

95,066

98,526

(3.5%)

111,815

120,160

151,523

(37.3%)

    Total commercial

269,476

301,261

(10.6%)

332,531

348,450

392,659

(31.4%)

Home equity revolving lines of credit

170

308

(44.8%)

450

520

518

(67.2%)

Home equity loans 1st liens

-

-

0.0%

-

-

-

0.0%

Home equity loans junior liens

2,067

2,307

(10.4%)

2,871

3,150

2,825

(26.8%)

  Home equity 

2,237

2,615

(14.5%)

3,321

3,670

3,343

(33.1%)

Installment

67

83

(19.3%)

99

111

131

(48.9%)

Residential mortgage

5,342

5,917

(9.7%)

7,882

8,762

8,197

(34.8%)

  Total consumer

7,646

8,615

(11.2%)

11,302

12,543

11,671

(34.5%)

        Total potential problem loans

$       277,122

$       309,876

(10.6%)

$        343,833

$       360,993

$       404,330

(31.5%)

N/M = Not meaningful.

 

 

 

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp

Three months ended September 30, 2013

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

$   5,876,745

$                   52,215

3.53%

$   5,860,416

$                   53,613

3.67%

     Commercial real estate lending

3,768,895

37,630

3.96

3,722,108

35,804

3.86

         Total commercial

9,645,640

89,845

3.70

9,582,524

89,417

3.74

      Residential mortgage

3,714,459

30,479

3.28

3,661,742

30,113

3.29

      Retail

2,364,266

26,816

4.51

2,483,541

28,291

4.56

         Total loans

15,724,365

147,140

3.72

15,727,807

147,821

3.77

      Investment securities

4,980,228

32,282

2.59

4,917,671

32,303

2.63

      Other short-term investments

334,874

1,260

1.51

305,766

1,232

1.61

         Investments and other

5,315,102

33,542

2.52

5,223,437

33,535

2.57

Total earning assets

21,039,467

180,682

3.42

20,951,244

181,356

3.47

   Other assets, net

2,274,110

2,354,976

Total assets

$ 23,313,577

$ 23,306,220

Interest-bearing liabilities:

   Savings deposits

$   1,204,743

$                        249

0.08%

$   1,207,959

$                        236

0.08%

   Interest-bearing demand deposits

2,810,962

1,101

0.16

2,867,524

1,190

0.17

   Money market deposits

7,556,050

3,449

0.18

6,930,554

3,239

0.19

   Time deposits

1,773,760

2,818

0.63

1,907,337

3,104

0.65

      Total interest-bearing deposits

13,345,515

7,617

0.23

12,913,374

7,769

0.24

   Federal funds purchased and securities sold under agreements to repurchase

633,594

308

0.19

677,489

333

0.20

   Other short-term funding

1,417,113

434

0.12

1,631,644

525

0.13

   Long-term funding

614,708

6,866

4.47

765,514

7,551

3.95

      Total short and long-term funding

2,665,415

7,608

1.14

3,074,647

8,409

1.09

Total interest-bearing liabilities

16,010,930

15,225

0.38

15,988,021

16,178

0.41

   Noninterest-bearing demand deposits

4,264,304

4,191,704

   Other liabilities

175,453

205,501

   Stockholders' equity

2,862,890

2,920,994

Total liabilities and stockholders' equity

$ 23,313,577

$ 23,306,220

Net interest income and rate spread (1)

$                 165,457

3.04%

$                 165,178

3.06%

Net interest margin (1)

3.13%

3.16%

Taxable equivalent adjustment

$                     4,948

$                     4,996

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp

Three months ended September 30, 2013

Three months ended September 30, 2012

 Average 

Interest

Average

 Average 

Interest

Average

(in thousands)

 Balance 

 Income / Expense 

 Yield / Rate 

 Balance 

 Income / Expense 

 Yield / Rate 

Earning assets:

   Loans: (1) (2) (3)

     Commercial and business lending

$   5,876,745

$                   52,215

3.53%

$   5,275,069

$                   51,432

3.88%

     Commercial real estate lending

3,768,895

37,630

3.96

3,440,220

35,913

4.16

         Total commercial

9,645,640

89,845

3.70

8,715,289

87,345

3.99

      Residential mortgage

3,714,459

30,479

3.28

3,320,212

30,044

3.62

      Retail

2,364,266

26,816

4.51

2,881,292

33,251

4.60

         Total loans

15,724,365

147,140

3.72

14,916,793

150,640

4.02

      Investment securities

4,980,228

32,282

2.59

4,319,404

31,950

2.96

      Other short-term investments

334,874

1,260

1.51

423,599

1,334

1.26

        Investments and other

5,315,102

33,542

2.52

4,743,003

33,284

2.81

Total earning assets

21,039,467

180,682

3.42

19,659,796

183,924

3.73

   Other assets, net

2,274,110

2,356,952

Total assets

$ 23,313,577

$ 22,016,748

Interest-bearing liabilities:

   Savings deposits

$   1,204,743

$                        249

0.08%

$   1,117,194

$                        229

0.08%

   Interest-bearing demand deposits

2,810,962

1,101

0.16

2,136,280

926

0.17

   Money market deposits

7,556,050

3,449

0.18

6,240,596

3,932

0.25

   Time deposits

1,773,760

2,818

0.63

2,159,684

4,664

0.86

      Total interest-bearing deposits

13,345,515

7,617

0.23

11,653,754

9,751

0.33

   Federal funds purchased and securities sold under agreements to repurchase

633,594

308

0.19

1,266,995

750

0.24

   Other short-term funding

1,417,113

434

0.12

837,316

815

0.39

   Long-term funding

614,708

6,866

4.47

1,182,632

11,738

3.97

      Total short and long-term funding

2,665,415

7,608

1.14

3,286,943

13,303

1.62

Total interest-bearing liabilities

16,010,930

15,225

0.38

14,940,697

23,054

0.62

   Noninterest-bearing demand deposits

4,264,304

3,962,102

   Other liabilities

175,453

180,239

   Stockholders' equity

2,862,890

2,933,710

Total liabilities and stockholders' equity

$ 23,313,577

$ 22,016,748

Net interest income and rate spread (1)

$                 165,457

3.04%

$                 160,870

3.11%

Net interest margin (1)

3.13%

3.26%

Taxable equivalent adjustment

$                     4,948

$                     5,268

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

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

(3) Interest income includes net loan fees.

 

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp

Nine months ended September 30, 2013

Nine months ended September 30, 2012

 Average 

Interest

Average

 Average 

Interest

Average

(in thousands)

 Balance 

 Income / Expense 

 Yield / Rate 

 Balance 

 Income / Expense 

 Yield / Rate 

Earning assets:

   Loans: (1) (2) (3)

     Commercial and business lending

$   5,785,024

$                 156,541

3.62%

$   5,041,098

$                 149,001

3.95%

     Commercial real estate lending

3,695,150

109,298

3.95

3,316,306

105,259

4.24

         Total commercial

9,480,174

265,839

3.75

8,357,404

254,260

4.06

      Residential mortgage

3,666,556

91,074

3.31

3,277,879

91,273

3.71

      Retail

2,487,723

84,487

4.54

2,975,782

103,230

4.63

         Total loans

15,634,453

441,400

3.77

14,611,065

448,763

4.10

      Investment securities

4,930,195

97,340

2.63

4,444,144

101,033

3.03

      Other short-term investments

327,209

3,740

1.53

417,998

3,843

1.23

        Investments and other

5,257,404

101,080

2.56

4,862,142

104,876

2.88

Total earning assets

20,891,857

542,480

3.47

19,473,207

553,639

3.79

   Other assets, net

2,328,652

2,314,461

Total assets

$ 23,220,509

$ 21,787,668

Interest-bearing liabilities:

   Savings deposits

$   1,185,059

$                        693

0.08%

$   1,085,514

$                        626

0.08%

   Interest-bearing demand deposits

2,819,585

3,470

0.16

2,118,789

2,788

0.18

   Money market deposits

7,178,857

10,304

0.19

5,930,870

11,233

0.25

   Time deposits

1,891,026

9,460

0.67

2,307,642

17,693

1.02

      Total interest-bearing deposits

13,074,527

23,927

0.24

11,442,815

32,340

0.38

   Federal funds purchased and securities sold under agreements to repurchase

696,343

1,051

0.20

1,241,652

2,129

0.23

   Other short-term funding

1,357,230

1,291

0.13

1,066,063

3,068

0.38

   Long-term funding

779,079

22,833

3.91

1,177,223

35,740

4.05

      Total short and long-term funding

2,832,652

25,175

1.19

3,484,938

40,937

1.57

Total interest-bearing liabilities

15,907,179

49,102

0.41

14,927,753

73,277

0.66

   Noninterest-bearing demand deposits

4,214,265

3,780,990

   Other liabilities

200,123

165,777

   Stockholders' equity

2,898,942

2,913,148

Total liabilities and stockholders' equity

$ 23,220,509

$ 21,787,668

Net interest income and rate spread (1)

$                 493,378

3.06%

$                 480,362

3.13%

Net interest margin (1)

3.15%

3.29%

Taxable equivalent adjustment

$                   15,034

$                   15,825

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

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

(3) Interest income includes net loan fees.

 

 

Financial Summary and Comparison

Associated Banc-Corp

Period End Loan Composition

 Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Commercial and industrial

$    4,703,056

$    4,752,838

(1.0%)

$     4,651,143

$    4,502,021

$    4,265,356

10.3%

Commercial real estate - owner occupied

1,147,352

1,174,866

(2.3%)

1,199,513

1,219,747

1,197,517

(4.2%)

Lease financing

51,727

55,084

(6.1%)

57,908

64,196

60,818

(14.9%)

  Commercial and business lending

5,902,135

5,982,788

(1.3%)

5,908,564

5,785,964

5,523,691

6.9%

Commercial real estate - investor

2,847,152

3,010,992

(5.4%)

2,900,167

2,906,759

2,787,158

2.2%

Real estate construction

834,744

800,569

4.3%

729,145

655,381

611,186

36.6%

  Commercial real estate lending

3,681,896

3,811,561

(3.4%)

3,629,312

3,562,140

3,398,344

8.3%

  Total commercial

9,584,031

9,794,349

(2.1%)

9,537,876

9,348,104

8,922,035

7.4%

Home equity revolving lines of credit

875,703

888,162

(1.4%)

904,187

936,065

988,800

(11.4%)

Home equity loans 1st liens

794,912

863,779

(8.0%)

940,017

1,013,757

1,079,075

(26.3%)

Home equity loans junior liens

220,763

234,292

(5.8%)

254,203

269,672

289,025

(23.6%)

  Home equity 

1,891,378

1,986,233

(4.8%)

2,098,407

2,219,494

2,356,900

(19.8%)

Installment

420,268

434,029

(3.2%)

447,445

466,727

482,451

(12.9%)

Residential mortgage

3,690,177

3,531,988

4.5%

3,467,834

3,376,697

3,204,828

15.1%

    Total consumer

6,001,823

5,952,250

0.8%

6,013,686

6,062,918

6,044,179

(0.7%)

Total loans

$  15,585,854

$  15,746,599

(1.0%)

$   15,551,562

$  15,411,022

$  14,966,214

4.1%

Period End Deposit and Customer Funding Composition

 Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Noninterest-bearing demand

$    4,453,663

$    4,259,776

4.6%

$     4,453,109

$    4,759,556

$    4,320,437

3.1%

Savings

1,195,944

1,211,567

(1.3%)

1,197,134

1,109,861

1,115,783

7.2%

Interest-bearing demand

2,735,529

2,802,277

(2.4%)

2,966,934

2,554,479

2,230,740

22.6%

Money market

8,199,281

7,040,317

16.5%

6,836,678

6,518,075

6,682,640

22.7%

Brokered CDs

56,024

59,206

(5.4%)

49,919

26,270

33,612

66.7%

Other time 

1,697,467

1,759,293

(3.5%)

1,917,520

1,971,624

2,067,380

(17.9%)

  Total deposits

18,337,908

17,132,436

7.0%

17,421,294

16,939,865

16,450,592

11.5%

Customer repo sweeps

515,555

489,700

5.3%

617,038

564,038

600,225

(14.1%)

Customer repo term

-

-

N/M

4,882

115,032

448,782

(100.0%)

  Total customer funding

515,555

489,700

5.3%

621,920

679,070

1,049,007

(50.9%)

    Total deposits and customer funding

$  18,853,463

$  17,622,136

7.0%

$   18,043,214

$  17,618,935

$  17,499,599

7.7%

Network transaction deposits included above in

  interest-bearing demand and money market

2,222,810

2,135,306

4.1%

2,054,714

1,684,745

1,740,434

27.7%

Brokered CDs

56,024

59,206

(5.4%)

49,919

26,270

33,612

66.7%

    Total network and brokered funding

2,278,834

2,194,512

3.8%

2,104,633

1,711,015

1,774,046

28.5%

    Net customer deposits and funding (1)

16,574,629

15,427,624

7.4%

15,938,581

15,907,920

15,725,553

5.4%

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

Quarter Average Loan Composition

 Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Commercial and industrial

$    4,680,582

$    4,635,892

1.0%

$     4,358,486

$    4,182,852

$    4,110,122

13.9%

Commercial real estate - owner occupied

1,142,919

1,169,124

(2.2%)

1,196,912

1,185,846

1,103,988

3.5%

Lease financing

53,244

55,400

(3.9%)

59,638

62,497

60,959

(12.7%)

  Commercial and business lending

5,876,745

5,860,416

0.3%

5,615,036

5,431,195

5,275,069

11.4%

Commercial real estate - investor

2,940,115

2,951,524

(0.4%)

2,899,930

2,821,023

2,832,447

3.8%

Real estate construction

828,780

770,584

7.6%

692,579

630,081

607,773

36.4%

  Commercial real estate lending

3,768,895

3,722,108

1.3%

3,592,509

3,451,104

3,440,220

9.6%

  Total commercial

9,645,640

9,582,524

0.7%

9,207,545

8,882,299

8,715,289

10.7%

Home equity revolving lines of credit

882,478

896,931

(1.6%)

922,084

962,263

995,156

(11.3%)

Home equity loans 1st liens

826,653

902,554

(8.4%)

976,466

1,047,207

1,097,394

(24.7%)

Home equity loans junior liens

227,021

242,796

(6.5%)

262,193

280,051

296,021

(23.3%)

  Home equity 

1,936,152

2,042,281

(5.2%)

2,160,743

2,289,521

2,388,571

(18.9%)

Installment

428,114

441,260

(3.0%)

457,409

473,563

492,721

(13.1%)

Residential mortgage

3,714,459

3,661,742

1.4%

3,622,455

3,485,719

3,320,212

11.9%

  Total consumer

6,078,725

6,145,283

(1.1%)

6,240,607

6,248,803

6,201,504

(2.0%)

Total loans

$  15,724,365

$  15,727,807

(0.0%)

$   15,448,152

$  15,131,102

$  14,916,793

5.4%

Quarter Average Deposit Composition

 Sep13 vs Jun13

Sep13 vs Sep12

Sep 30, 2013

Jun 30, 2013

% Change

Mar 31, 2013

Dec 31, 2012

Sep 30, 2012

% Change

Noninterest-bearing demand

$    4,264,304

$    4,191,704

1.7%

$     4,185,924

$    4,448,767

$    3,962,102

7.6%

Savings

1,204,743

1,207,959

(0.3%)

1,141,781

1,129,983

1,117,194

7.8%

Interest-bearing demand

2,810,962

2,867,524

(2.0%)

2,779,929

2,236,826

2,136,280

31.6%

Money market

7,556,050

6,930,554

9.0%

7,044,344

6,797,306

6,240,596

21.1%

Time deposits

1,773,760

1,907,337

(7.0%)

1,994,406

2,037,386

2,159,684

(17.9%)

  Total deposits

$  17,609,819

$  17,105,078

3.0%

$   17,146,384

$  16,650,268

$  15,615,856

12.8%

 

SOURCE Associated Banc-Corp



RELATED LINKS

http://www.associatedbank.com