Associated Reports Third Quarter Earnings of $0.27 per share Earnings Per Share up 11% year over year

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

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