ASSOCIATED BANC CORP 
By GREEN BAY, Wis., Jan. 16, 2014 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported earnings per share of $1.10 for the year ended December 31, 2013. This compares to $1.00 per common share, for the year ended December 31, 2012.
For the quarter ended December 31, 2013, the Company reported earnings per share of $0.28 per common share. This compares to $0.26 per common share, for the quarter ended December 31, 2012.
"Overall we are pleased with our 2013 financial results and accomplishments. We were able to continue to grow our balance sheet, increase total revenues, modestly reduce expenses, and grow bottom line earnings," said President and CEO Philip B. Flynn. "We remain focused on delivering increased value to our shareholders."
2013 FULL YEAR HIGHLIGHTS
-- Revenue of $959 million, up 2% from a year ago.
-- Noninterest expenses were down slightly from 2012.
-- Net income to common shareholders of $184 million, up 6% from a year
ago.
-- Average loan balances have grown by $921 million, or 6%, from a year ago
to $15.7 billion.
-- Strong average deposit growth of 12% from a year ago to $17.4 billion.
-- Net interest margin decreased 13 basis points from 2012 while 2013 net
interest income was up 3% or $20 million.
-- Credit quality continued to improve with net charge offs, nonaccrual
loans, past due loans and potential problem loans all declining year
over year.
-- The Company repurchased $120 million, or approximately 7.7 million
shares, of common stock at an average price of $15.57 per share.
-- Total dividends per common share of $0.33 were up 43% from 2012.
-- Return on Tier 1 common equity for 2013 of 9.8%, compared to 9.5% for
2012.
-- Capital ratios remain very strong with a Tier 1 common equity ratio of
11.46% at year end.
FOURTH QUARTER AND 2013 FINANCIAL RESULTS
Loans
Average loans of $15.7 billion for 2013 were up $921 million, or 6%, from 2012. Total average Commercial Loans for 2013 increased 12% or $1 billion from a year ago to $9.5 billion. The residential mortgage portfolio 2013 average balances grew by $384 million, or 12%, compared to 2012. Run off in home equity and installment loan balances continues, with an average balance decline of $489 million during 2013, or 17%, from 2012, offsetting part of the growth.
Fourth quarter 2013 average loans were flat compared to the prior quarter as the 4% increase in the residential mortgage portfolio was almost entirely offset by decreases in other portfolios.
Deposits
2013 Average deposits of $17.4 billion were up 12% or $1.9 billion from 2012. Total average checking, savings, and money market balances growth of $2.2 billion was partially offset by declines in time deposits of $390 million during the year.
Average deposits of $17.9 billion for the fourth quarter were up $272 million, or 2% compared to the third quarter and have increased by $1.2 billion, or 7%, from the year ago quarter. Late in the fourth quarter, the Company reduced collateralized municipal deposits by $1 billion and replaced them with lower cost, longer term FHLB borrowings.
Net Interest Income and Net Interest Margin
Net interest income of $646 million for 2013 was up $20 million or 3% from 2012. Fourth quarter net interest income of $167 million increased 4% compared to the prior quarter and was up $6 million, or 4% compared to the year ago quarter.
Net interest margin decreased 13 basis points from 2012. Fourth quarter net interest margin was 3.23%, an increase of 10 basis points from the 3.13% reported in the third quarter and a decrease of 9 basis points from a year ago. The increase from the third quarter was mainly the result of an 8 basis point increase in asset yields as the Company experienced $3 million in interest recoveries. Fourth quarter net interest margin also benefited by 3 basis points from liability cost management actions related to replacing higher cost deposits with less expensive FHLB funding.
Noninterest Income and Expense
Noninterest income of $313 million for 2013, was flat compared to 2012. Noninterest income for the fourth quarter was $76 million, up $5 million, or 7% from the third quarter. This increase was primarily attributed to net mortgage banking income being up $5 million from the prior quarter.
2013 total noninterest expense of $681 million was down slightly from 2012. Increases in personnel, technology and equipment, and business development/advertising expenses were more than offset by declines in legal and professional fees, losses other than loans, and foreclosure/OREO expenses.
Total noninterest expense for the quarter ended December 31, 2013 was $179 million, up $15 million or 9% from the third quarter. Personnel expenses increased by $3 million during the fourth quarter which included $2 million of severance costs related to ongoing efficiency initiatives. Business development and advertising expenses increased $2 million from the third quarter as we ramped up our brand campaign. Fourth quarter other expenses increased $3 million from the third quarter related to several one-time items.
Taxes
During the fourth quarter, the Company recognized a $6 million tax benefit related to a settlement of a tax issue and the expiration of various statutes of limitations.
Credit
The Company reported another quarter of improving credit quality with nonaccrual loans down 11%, to $185 million compared to the third quarter, and down 27% from a year ago. The ratio of nonaccrual loans to total loans at year end stands at 1.17% and has improved for the 15(th) consecutive quarter.
Net charge offs of $5 million for the fourth quarter were flat from the third quarter; both quarters experienced elevated recoveries.
Provision for loan losses was $10 million in 2013 compared to $3 million for 2012. The Company's allowance for loan losses was $268 million, representing an allowance equal to 1.69% of loans and representing a coverage ratio of 145% of nonaccrual loans at December 31, 2013.
Capital Ratios
The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.46% at December 31, 2013. The Company's capital ratios continue to be well in excess of both current and expected "well-capitalized" regulatory benchmarks.
FOURTH QUARTER 2013 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 16, 2014. Interested parties can listen to the call live on the internet through the investor relations section of the company's website, https://www.associatedbank.com/investor or by dialing 877-445-2557. The slide presentation for the call will be available on the company's website just prior to the call. The number for international callers is 973-935-2959. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2013 earnings call.
An audio archive of the webcast will be available on the company's website at https://www.associatedbank.com/investor.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NASDAQ: ASBC) has total assets of $24 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe", "expect", "anticipate", "plan", "estimate", "should", "will", "intend", "outlook", or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
Investor Contact:
Brian Klaus, Senior Vice President, Director of Investor Relations
920-491-7059
Media Contact:
Cliff Bowers, Senior Vice President, Director of Public Relations
920-491-7542
Associated Banc-Corp
Consolidated Balance Sheets (Unaudited)
December 31, September 30, Seql Qtr June 30, March 31, December 31, Comp Qtr
(in thousands) 2013 2013 $ Change 2013 2013 2012 $ Change
------------- ---- ---- -------- ---- ---- ---- --------
Assets
Cash and due from banks $455,482 $526,009 $(70,527) $422,779 $336,247 $563,304 $(107,822)
Interest-bearing deposits in other
financial institutions 126,018 277,761 (151,743) 121,390 82,555 147,434 (21,416)
Federal funds sold and securities
purchased
under agreements to resell 20,745 25,400 (4,655) 10,800 8,600 27,135 (6,390)
Securities held to maturity, at
amortized cost 175,210 125,095 50,115 75,946 54,123 39,877 135,333
Securities available for sale, at
fair value 5,250,585 4,840,035 410,550 4,854,319 4,950,317 4,926,758 323,827
Federal Home Loan Bank and Federal
Reserve Bank stocks, at cost 181,249 181,129 120 181,008 152,490 166,774 14,475
Loans held for sale 64,738 102,052 (37,314) 203,576 173,389 261,410 (196,672)
Loans 15,896,261 15,585,854 310,407 15,746,599 15,551,562 15,411,022 485,239
Allowance for loan losses (268,315) (271,724) 3,409 (277,218) (286,923) (297,409) 29,094
-------- -------- ----- -------- -------- -------- ------
Loans, net 15,627,946 15,314,130 313,816 15,469,381 15,264,639 15,113,613 514,333
Premises and equipment, net 270,890 265,636 5,254 258,903 254,674 253,958 16,932
Goodwill 929,168 929,168 - 929,168 929,168 929,168 -
Other intangible assets, net 74,464 75,730 (1,266) 74,612 66,294 61,176 13,288
Trading assets 43,728 49,402 (5,674) 49,732 65,014 70,711 (26,983)
Other assets 1,006,697 977,128 29,569 965,330 940,258 926,417 80,280
--------- ------- ------ ------- ------- ------- ------
Total assets $24,226,920 23,688,675 $538,245 23,616,944 $23,277,768 $23,487,735 $739,185
=========== ========== ======== ========== =========== =========== ========
Liabilities and Stockholders'
Equity
Noninterest-bearing demand
deposits $4,626,312 4,453,663 $172,649 4,259,776 $4,453,109 $4,759,556 $(133,244)
Interest-bearing deposits 12,640,855 13,884,245 (1,243,390) 12,872,660 12,968,185 12,180,309 460,546
---------- ---------- ---------- ---------- ---------- ---------- -------
Total deposits 17,267,167 18,337,908 (1,070,741) 17,132,436 17,421,294 16,939,865 327,302
Federal funds purchased and
securities sold
under agreements to repurchase 475,442 580,479 (105,037) 545,740 730,855 750,455 (275,013)
Other short-term funding 265,484 1,046,401 (780,917) 2,218,760 1,038,697 1,576,484 (1,311,000)
Long-term funding 3,087,267 614,568 2,472,699 614,822 915,063 1,015,346 2,071,921
Trading liabilities 46,470 52,430 (5,960) 52,598 70,236 76,343 (29,873)
Accrued expenses and other
liabilities 193,800 184,607 9,193 175,612 165,358 192,843 957
------- ------- ----- ------- ------- ------- ---
Total liabilities 21,335,630 20,816,393 519,237 20,739,968 20,341,503 20,551,336 784,294
Stockholders' Equity
Preferred equity 61,862 62,737 (875) 63,272 63,272 63,272 (1,410)
Common stock 1,750 1,750 - 1,750 1,750 1,750 -
Surplus 1,617,990 1,614,516 3,474 1,610,243 1,605,966 1,602,136 15,854
Retained earnings 1,392,508 1,361,498 31,010 1,330,737 1,297,692 1,281,811 110,697
Accumulated other comprehensive
income (loss) (24,244) (37,120) 12,876 (25,015) 42,991 48,603 (72,847)
Treasury stock (158,576) (131,099) (27,477) (104,011) (75,406) (61,173) (97,403)
-------- -------- ------- -------- ------- ------- -------
Total stockholders' equity 2,891,290 2,872,282 19,008 2,876,976 2,936,265 2,936,399 (45,109)
--------- --------- ------ --------- --------- --------- -------
Total liabilities and
stockholders' equity $24,226,920 23,688,675 $538,245 23,616,944 $23,277,768 $23,487,735 $739,185
=========== ========== ======== ========== =========== =========== ========
Associated Banc-Corp
Consolidated Statements of Income (Unaudited)
For The Three Months Ended For The Year Ended
December 31, Quarter December 31, Year-to-Date
------------ ------------
(in thousands, except per share amounts) 2013 2012 $ Change % Change 2013 2012 $ Change % Change
--------------------------------------- ---- ---- -------- -------- ---- ---- -------- --------
Interest Income
Interest and fees on loans $148,884 $150,107 $(1,223) (0.8%) $587,526 $595,965 $(8,439) (1.4%)
Interest and dividends on investment
securities:
Taxable 24,316 20,368 3,948 19.4% 88,919 86,945 1,974 2.3%
Tax-exempt 6,884 7,119 (235) (3.3%) 27,345 28,655 (1,310) (4.6%)
Other interest 1,453 2,876 (1,423) (49.5%) 5,193 6,719 (1,526) (22.7%)
----- ----- ------ ----- ----- ------
Total interest income 181,537 180,470 1,067 0.6% 708,983 718,284 (9,301) (1.3%)
Interest Expense
Interest on deposits 7,340 9,091 (1,751) (19.3%) 31,267 41,431 (10,164) (24.5%)
Interest on Federal funds purchased and
securities
sold under agreements to repurchase 271 558 (287) (51.4%) 1,322 2,687 (1,365) (50.8%)
Interest on other short-term funding 228 226 2 0.9% 1,519 3,294 (1,775) (53.9%)
Interest on long-term funding 6,499 9,140 (2,641) (28.9%) 29,332 44,880 (15,548) (34.6%)
----- ----- ------ ------ ------ -------
Total interest expense 14,338 19,015 (4,677) (24.6%) 63,440 92,292 (28,852) (31.3%)
------ ------ ------ ------ ------ -------
Net Interest Income 167,199 161,455 5,744 3.6% 645,543 625,992 19,551 3.1%
Provision for loan losses 2,000 3,000 (1,000) (33.3%) 10,000 3,000 7,000 233.3%
----- ----- ------ ------ ----- -----
Net interest income after provision for
loan losses 165,199 158,455 6,744 4.3% 635,543 622,992 12,551 2.0%
Noninterest Income
Trust service fees 11,938 10,429 1,509 14.5% 45,633 40,737 4,896 12.0%
Service charges on deposit accounts 17,330 16,817 513 3.1% 70,009 68,917 1,092 1.6%
Card-based and other nondeposit fees 12,684 12,690 (6) (0.0%) 49,913 47,862 2,051 4.3%
Insurance commissions 11,274 10,862 412 3.8% 44,024 47,014 (2,990) (6.4%)
Brokerage and annuity commissions 3,881 3,678 203 5.5% 14,877 15,643 (766) (4.9%)
----- ----- --- ------ ------ ----
Total core fee-based revenue 57,107 54,476 2,631 4.8% 224,456 220,173 4,283 1.9%
Mortgage banking, net 8,277 13,530 (5,253) (38.8%) 48,847 63,500 (14,653) (23.1%)
Capital market fees, net 2,771 4,243 (1,472) (34.7%) 13,080 14,241 (1,161) (8.2%)
Bank owned life insurance income 2,787 3,206 (419) (13.1%) 11,855 13,952 (2,097) (15.0%)
Asset gains (losses), net 2,687 (209) 2,896 N/M 5,413 (12,096) 17,509 (144.8%)
Investment securities gains (losses),
net (18) 152 (170) (111.8%) 564 4,261 (3,697) (86.8%)
Other 2,262 2,507 (245) (9.8%) 8,884 9,259 (375) (4.1%)
----- ----- ---- ----- ----- ----
Total noninterest income 75,873 77,905 (2,032) (2.6%) 313,099 313,290 (191) (0.1%)
Noninterest Expense
Personnel expense 101,215 98,073 3,142 3.2% 397,015 381,404 15,611 4.1%
Occupancy 14,684 17,273 (2,589) (15.0%) 59,409 60,794 (1,385) (2.3%)
Equipment 6,509 6,444 65 1.0% 25,351 23,566 1,785 7.6%
Technology 12,963 11,706 1,257 10.7% 49,445 43,548 5,897 13.5%
Business development and advertising 7,834 5,395 2,439 45.2% 23,346 21,303 2,043 9.6%
Other intangible amortization 1,011 1,049 (38) (3.6%) 4,043 4,195 (152) (3.6%)
Loan expense 3,677 3,130 547 17.5% 13,162 12,285 877 7.1%
Legal and professional fees 5,916 8,174 (2,258) (27.6%) 20,226 31,232 (11,006) (35.2%)
Losses other than loans 1,859 3,071 (1,212) (39.5%) 1,942 12,258 (10,316) (84.2%)
Foreclosure/OREO expense 2,829 3,293 (464) (14.1%) 10,068 15,069 (5,001) (33.2%)
FDIC expense 4,879 4,813 66 1.4% 19,461 19,478 (17) (0.1%)
Other 16,091 13,907 2,184 15.7% 57,281 56,691 590 1.0%
------ ------ ----- ------ ------ ---
Total noninterest expense 179,467 176,328 3,139 1.8% 680,749 681,823 (1,074) (0.2%)
------- ------- ----- ------- ------- ------
Income before income taxes 61,605 60,032 1,573 2.6% 267,893 254,459 13,434 5.3%
Income tax expense 13,847 13,404 443 3.3% 79,201 75,486 3,715 4.9%
------ ------ --- ------ ------ -----
Net income 47,758 46,628 1,130 2.4% 188,692 178,973 9,719 5.4%
Preferred stock dividends 1,273 1,300 (27) (2.1%) 5,158 5,200 (42) (0.8%)
----- ----- --- ----- ----- ---
Net income available to common equity $46,485 $45,328 $1,157 2.6% $183,534 $173,773 $9,761 5.6%
======= ======= ====== ======== ======== ======
Earnings Per Common Share:
Basic $0.28 $0.26 $0.02 7.7% $1.10 $1.00 $0.10 10.0%
Diluted $0.28 $0.26 $0.02 7.7% $1.10 $1.00 $0.10 10.0%
Average Common Shares Outstanding:
Basic 162,611 170,707 (8,096) (4.7%) 165,584 172,255 (6,671) (3.9%)
Diluted 163,235 170,896 (7,661) (4.5%) 165,802 172,357 (6,555) (3.8%)
N/M = Not meaningful.
Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend
Sequential Qtr Comparable Qtr
(in thousands, except per share amounts) 4Q13 3Q13 $ Change % Change 2Q13 1Q13 4Q12 $ Change % Change
--------------------------------------- ---- ---- -------- -------- ---- ---- ---- -------- --------
Interest Income
Interest and fees on loans $148,884 $146,219 $2,665 1.8% $146,896 $145,527 $150,107 $(1,223) (0.8%)
Interest and dividends on investment
securities:
Taxable 24,316 21,544 2,772 12.9% 21,446 21,613 20,368 3,948 19.4%
Tax-exempt 6,884 6,711 173 2.6% 6,785 6,965 7,119 (235) (3.3%)
Other interest 1,453 1,260 193 15.3% 1,233 1,247 2,876 (1,423) (49.5%)
----- ----- --- ----- ----- ----- ------
Total interest income 181,537 175,734 5,803 3.3% 176,360 175,352 180,470 1,067 0.6%
Interest Expense
Interest on deposits 7,340 7,617 (277) (3.6%) 7,769 8,541 9,091 (1,751) (19.3%)
Interest on Federal funds purchased and
securities
sold under agreements to repurchase 271 308 (37) (12.0%) 333 410 558 (287) (51.4%)
Interest on other short-term funding 228 434 (206) (47.5%) 525 332 226 2 0.9%
Interest on long-term funding 6,499 6,866 (367) (5.3%) 7,551 8,416 9,140 (2,641) (28.9%)
----- ----- ---- ----- ----- ----- ------
Total interest expense 14,338 15,225 (887) (5.8%) 16,178 17,699 19,015 (4,677) (24.6%)
------ ------ ---- ------ ------ ------ ------
Net Interest Income 167,199 160,509 6,690 4.2% 160,182 157,653 161,455 5,744 3.6%
Provision for loan losses 2,000 - 2,000 N/M 4,000 4,000 3,000 (1,000) (33.3%)
----- --- ----- ----- ----- ----- ------
Net interest income after provision for
loan losses 165,199 160,509 4,690 2.9% 156,182 153,653 158,455 6,744 4.3%
Noninterest Income
Trust service fees 11,938 11,380 558 4.9% 11,405 10,910 10,429 1,509 14.5%
Service charges on deposit accounts 17,330 18,407 (1,077) (5.9%) 17,443 16,829 16,817 513 3.1%
Card-based and other nondeposit fees 12,684 12,688 (4) (0.0%) 12,591 11,950 12,690 (6) (0.0%)
Insurance commissions 11,274 11,356 (82) (0.7%) 9,631 11,763 10,862 412 3.8%
Brokerage and annuity commissions 3,881 3,792 89 2.3% 3,688 3,516 3,678 203 5.5%
----- ----- --- ----- ----- ----- ---
Total core fee-based revenue 57,107 57,623 (516) (0.9%) 54,758 54,968 54,476 2,631 4.8%
Mortgage banking, net 8,277 3,542 4,735 133.7% 19,263 17,765 13,530 (5,253) (38.8%)
Capital market fees, net 2,771 2,652 119 4.5% 5,074 2,583 4,243 (1,472) (34.7%)
Bank owned life insurance income 2,787 2,817 (30) (1.1%) 3,281 2,970 3,206 (419) (13.1%)
Asset gains (losses), net 2,687 1,934 753 38.9% (44) 836 (209) 2,896 N/M
Investment securities gains (losses),
net (18) 248 (266) (107.3%) 34 300 152 (170) (111.8%)
Other 2,262 2,100 162 7.7% 1,944 2,578 2,507 (245) (9.8%)
----- ----- --- ----- ----- ----- ----
Total noninterest income 75,873 70,916 4,957 7.0% 84,310 82,000 77,905 (2,032) (2.6%)
Noninterest Expense
Personnel expense 101,215 98,102 3,113 3.2% 99,791 97,907 98,073 3,142 3.2%
Occupancy 14,684 14,758 (74) (0.5%) 14,305 15,662 17,273 (2,589) (15.0%)
Equipment 6,509 6,213 296 4.8% 6,462 6,167 6,444 65 1.0%
Technology 12,963 12,323 640 5.2% 12,651 11,508 11,706 1,257 10.7%
Business development and advertising 7,834 5,947 1,887 31.7% 5,028 4,537 5,395 2,439 45.2%
Other intangible amortization 1,011 1,010 1 0.1% 1,011 1,011 1,049 (38) (3.6%)
Loan expense 3,677 3,157 520 16.5% 3,044 3,284 3,130 547 17.5%
Legal and professional fees 5,916 3,482 2,434 69.9% 5,483 5,345 8,174 (2,258) (27.6%)
Losses other than loans 1,859 (1,400) 3,259 (232.8%) 1,799 (316) 3,071 (1,212) (39.5%)
Foreclosure/OREO expense 2,829 2,515 314 12.5% 2,302 2,422 3,293 (464) (14.1%)
FDIC expense 4,879 4,755 124 2.6% 4,395 5,432 4,813 66 1.4%
Other 16,091 13,509 2,582 19.1% 13,725 13,956 13,907 2,184 15.7%
------ ------ ----- ------ ------ ------ -----
Total noninterest expense 179,467 164,371 15,096 9.2% 169,996 166,915 176,328 3,139 1.8%
------- ------- ------ ------- ------- ------- -----
Income before income taxes 61,605 67,054 (5,449) (8.1%) 70,496 68,738 60,032 1,573 2.6%
Income tax expense 13,847 21,396 (7,549) (35.3%) 22,608 21,350 13,404 443 3.3%
------ ------ ------ ------ ------ ------ ---
Net income 47,758 45,658 2,100 4.6% 47,888 47,388 46,628 1,130 2.4%
Preferred stock dividends 1,273 1,285 (12) (0.9%) 1,300 1,300 1,300 (27) (2.1%)
----- ----- --- ----- ----- ----- ---
Net income available to common equity $46,485 $44,373 $2,112 4.8% $46,588 $46,088 $45,328 $1,157 2.6%
======= ======= ====== ======= ======= ======= ======
Earnings Per Common Share:
Basic $0.28 $0.27 $0.01 3.7% $0.28 $0.27 $0.26 $0.02 7.7%
Diluted $0.28 $0.27 $0.01 3.7% $0.28 $0.27 $0.26 $0.02 7.7%
Average Common Shares Outstanding:
Basic 162,611 164,954 (2,343) (1.4%) 166,605 168,234 170,707 (8,096) (4.7%)
Diluted 163,235 165,443 (2,208) (1.3%) 166,748 168,404 170,896 (7,661) (4.5%)
N/M = Not meaningful.
Associated Banc-Corp
Selected Quarterly Information
------------------------------
(in thousands, except
per share, full time
equivalent employee
data and otherwise
noted) YTD 2013 YTD 2012 4th Qtr 2013 3rd Qtr 2013 2nd Qtr 2013 1st Qtr 2013 4th Qtr 2012
--------------------- -------- -------- ------------ ------------ ------------ ------------ ------------
Per Common Share Data
Dividends $0.33 $0.23 $0.09 $0.08 $0.08 $0.08 $0.08
Market Value:
High $17.60 $14.63 $17.56 $17.60 $15.69 $15.30 $13.54
Low 13.46 11.43 15.34 15.29 13.81 13.46 12.19
Close 17.40 13.12 17.40 15.49 15.55 15.19 13.12
Book value 17.40 16.97 17.40 17.10 16.97 17.13 16.97
Tier 1 common equity /
share 11.77 11.08 11.77 11.59 11.42 11.22 11.08
Tangible book value /
share 11.62 11.39 11.62 11.37 11.28 11.51 11.39
Performance Ratios (annualized)
Return on average
assets 0.81% 0.81% 0.80% 0.78% 0.82% 0.83% 0.83%
Return on average
tangible common equity 9.73 8.96 9.87 9.48 9.76 9.81 9.15
Return on average Tier
1 common equity (1) 9.77 9.45 9.78 9.31 9.94 10.07 9.61
Effective tax rate 29.56 29.67 22.48 31.91 32.07 31.06 22.33
Dividend payout ratio
(3) 30.00 23.00 32.14 29.63 28.57 29.63 30.77
Average Balances
Common stockholders'
equity $2,829,300 $2,885,716 $2,810,130 $2,799,885 $2,857,722 $2,850,227 $2,915,346
Average Tier 1 common
equity (1) 1,878,371 1,838,424 1,885,377 1,890,398 1,880,826 1,856,431 1,876,686
Selected trend information
Average full time
equivalent employees 4,728 4,968 4,584 4,699 4,790 4,841 4,915
Trust assets under
management, at market
value ($ in millions) $7,424 $6,454 $7,424 $7,078 $6,894 $6,913 $6,454
Mortgage loans
originated for sale
during period 2,304,006 2,797,431 326,648 513,549 782,398 681,410 780,469
Mortgage portfolio
serviced for others ($
in millions) 8,084 7,453 8,084 8,014 7,794 7,585 7,453
Mortgage servicing
rights, net /
Portfolio serviced for
others 0.78% 0.62% 0.78% 0.79% 0.79% 0.69% 0.62%
At Period End
Loans / deposits 92.06% 84.99% 91.91% 89.27% 90.97%
Risk weighted assets ($ in millions) (4) (6) 16,694 16,359 16,479 16,163 16,149
Tier 1 common equity (1) 1,913,320 1,904,060 1,893,875 1,881,410 1,875,534
Stockholders' equity / assets 11.93% 12.13% 12.18% 12.61% 12.50%
Tangible common equity / tangible assets (5) 8.11% 8.21% 8.25% 8.64% 8.56%
Tangible equity / tangible assets (5) 8.38% 8.49% 8.53% 8.92% 8.84%
Tier 1 common equity / risk-weighted assets (4) (6) 11.46% 11.64% 11.49% 11.64% 11.61%
Tier 1 leverage ratio (4) (6) 8.70% 8.76% 8.73% 8.78% 8.98%
Tier 1 risk-based capital ratio (4) (6) 11.83% 12.02% 11.88% 12.03% 12.01%
Total risk-based capital ratio (4) (6) 13.09% 13.44% 13.29% 13.45% 13.42%
Shares outstanding, end of period 162,623 164,303 165,837 167,673 169,304
Non-GAAP financial measures reconcilation
Efficiency ratio (2) 71.05% 72.92% 73.83% 71.10% 69.54% 69.74% 73.71%
Taxable equivalent
adjustment (1.46) (1.60) (1.50) (1.49) (1.39) (1.46) (1.57)
Asset gains (losses),
net 0.40 (0.90) 0.80 0.58 (0.01) 0.24 (0.06)
Other intangible
amortization (0.42) (0.43) (0.42) (0.44) (0.41) (0.42) (0.43)
Efficiency ratio, fully
taxable equivalent (2) 69.57% 69.99% 72.71% 69.75% 67.73% 68.10% 71.65%
(1) Tier 1 common equity, a non-
GAAP financial measure, is used
by banking regulators, investors
and analysts to assess and
compare the quality and
composition of our capital with
the capital of other financial
services companies. Management
uses Tier 1 common equity, along
with other capital measures, to
assess and monitor our capital
position. Tier 1 common equity
(period end and average) is Tier
1 capital excluding qualifying
perpetual preferred stock and
qualifying trust preferred
securities.
(2) Efficiency ratio is defined by
the Federal Reserve guidance as
noninterest expense divided by
the sum of net interest income
plus noninterest income,
excluding investment securities
gains /losses, net. Efficiency
ratio, fully taxable equivalent,
is noninterest expense, excluding
other intangible amortization,
divided by the sum of taxable
equivalent net interest income
plus noninterest income,
excluding investment securities
gains /losses, net and asset
gains /losses, net. This
efficiency ratio is presented on
a taxable equivalent basis, which
adjusts net interest income for
the tax-favored status of
certain loans and investment
securities. Management believes
this measure to be the preferred
industry measurement of net
interest income as it enhances
the comparability of net interest
income arising from taxable and
tax-exempt sources and it
excludes certain specific revenue
items (such as investment
securities gains /losses, net
and asset gains /losses, net).
(3) Ratio is based upon basic
earnings per common share.
(4) December 31, 2013 data is
estimated.
(5) Tangible equity, tangible
common equity and tangible assets
exclude goodwill and other
intangible assets, which is a
non-GAAP financial measure.
These financial measures have
been included as they are
considered to be critical metrics
with which to analyze and
evaluate financial condition and
capital strength.
(6) The Federal Reserve
establishes capital adequacy
requirements, including well-
capitalized standards for the
Corporation. The OCC establishes
similar capital adequacy
requirements and standards for
the Bank. Regulatory capital
primarily consists of Tier 1
risk-based capital and Tier 2
risk-based capital. The sum of
Tier 1 risk-based capital and
Tier 2 risk-based capital equals
our total risk-based capital.
Risk-based capital guidelines
require a minimum level of
capital as a percentage of risk-
weighted assets. Risk-weighted
assets consist of total assets
plus certain off-balance sheet
and market items, subject to
adjustment for predefined credit
risk factors.
Associated Banc-Corp
Selected Asset Quality Information
Dec13 vs Sep13 Dec13 vs Dec12
(in thousands) Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------- ------------ ------------ -------- ------------ ------------ ------------ --------
Allowance for Loan Losses
Beginning balance $271,724 $277,218 (2.0%) $286,923 $297,409 $315,150 (13.8%)
Provision for loan losses 2,000 - N/M 4,000 4,000 3,000 (33.3%)
Charge offs (18,742) (20,288) (7.6%) (21,904) (27,128) (30,417) (38.4%)
Recoveries 13,333 14,794 (9.9%) 8,199 12,642 9,676 37.8%
------ ------ ----- ------ -----
Net charge offs (5,409) (5,494) (1.5%) (13,705) (14,486) (20,741) (73.9%)
------ ------ ------- ------- -------
Ending balance $268,315 $271,724 (1.3%) $277,218 $286,923 $297,409 (9.8%)
======== ======== ======== ======== ========
Reserve for losses on unfunded
commitments $21,900 $21,600 1.4% $22,400 $21,100 $21,800 0.5%
Net Charge Offs Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and industrial $4,555 $(447) N/M $1,477 $696 $2,630 73.2%
Commercial real estate -owner
occupied 967 2,076 (53.4%) 1,574 1,518 2,056 (53.0%)
Lease financing (16) - N/M 16 (12) 754 (102.1%)
--- --- --- --- ---
Commercial and business lending 5,506 1,629 238.0% 3,067 2,202 5,440 1.2%
Commercial real estate -
investor 137 (414) (133.1%) 2,999 163 (232) (159.1%)
Real estate construction (3,130) (303) N/M (95) 1,392 858 N/M
------ ---- --- ----- ---
Commercial real estate lending (2,993) (717) 317.4% 2,904 1,555 626 N/M
------ ---- ----- ----- ---
Total commercial 2,513 912 175.5% 5,971 3,757 6,066 (58.6%)
Home equity revolving lines of
credit 966 767 25.9% 2,512 3,615 3,590 (73.1%)
Home equity loans 1st liens 372 564 (34.0%) 954 765 1,060 (64.9%)
Home equity loans junior liens 1,111 800 38.9% 2,034 1,957 3,421 (67.5%)
----- --- ----- ----- -----
Home equity 2,449 2,131 14.9% 5,500 6,337 8,071 (69.7%)
Installment (611) 124 N/M 66 177 1,027 (159.5%)
Residential mortgage 1,058 2,327 (54.5%) 2,168 4,215 5,577 (81.0%)
----- ----- ----- ----- -----
Total consumer 2,896 4,582 (36.8%) 7,734 10,729 14,675 (80.3%)
----- ----- ----- ------ ------
Total net charge offs $5,409 $5,494 (1.5%) $13,705 $14,486 $20,741 (73.9%)
====== ====== ======= ======= =======
-
Net Charge Offs to Average Loans
(in basis points) * Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012
------------ ------------ ------------ ------------ ------------
Commercial and industrial 38 (4) 13 6 25
Commercial real estate -owner
occupied 34 72 54 51 69
Lease financing (12) - 12 (8) 480
--- --- --- --- ---
Commercial and business lending 37 11 21 16 40
Commercial real estate -
investor 2 (6) 41 2 (3)
Real estate construction (145) (15) (5) 82 54
---- --- --- --- ---
Commercial real estate lending (32) (8) 31 18 7
--- --- --- --- ---
Total commercial 10 4 25 17 27
Home equity revolving lines of
credit 44 34 112 159 148
Home equity loans 1st liens 19 27 42 32 40
Home equity loans junior liens 205 140 336 303 486
--- --- --- --- ---
Home equity 52 44 108 119 140
Installment (59) 11 6 16 86
Residential mortgage 11 25 24 47 64
--- --- --- --- ---
Total consumer 19 30 50 70 93
--- --- --- --- ---
Total net charge offs 14 14 35 38 55
=== === === === ===
Credit Quality Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Nonaccrual loans $185,428 $207,594 (10.7%) $217,493 $225,436 $252,868 (26.7%)
Other real estate owned (OREO) 18,118 25,077 (27.8%) 27,407 35,156 34,900 (48.1%)
------ ------ ------ ------ ------
Total nonperforming assets $203,546 $232,671 (12.5%) $244,900 $260,592 $287,768 (29.3%)
======== ======== ======== ======== ========
Loans 90 or more days past due
and still accruing 2,350 2,063 13.9% 1,548 5,690 2,289 2.7%
Restructured loans (accruing) 123,985 117,043 5.9% 119,066 120,093 121,087 2.4%
Allowance for loan losses /
loans 1.69% 1.74% 1.76% 1.84% 1.93%
Allowance for loan losses /
nonaccrual loans 144.70 130.89 127.46 127.27 117.61
Nonaccrual loans / total loans 1.17 1.33 1.38 1.45 1.64
Nonperforming assets /total
loans plus OREO 1.28 1.49 1.55 1.67 1.86
Nonperforming assets /total
assets 0.84 0.98 1.04 1.12 1.23
Net charge offs /average loans
(annualized) 0.14 0.14 0.35 0.38 0.55
Year-to-date net charge offs /
average loans 0.25 0.29 0.36 0.38 0.57
Nonaccrual loans by type:
Commercial and industrial $37,719 $36,105 4.5% $30,302 $33,242 $39,182 (3.7%)
Commercial real estate -owner
occupied 29,664 28,301 4.8% 24,003 23,199 24,254 22.3%
Lease financing 69 99 (30.3%) 72 2,165 3,031 (97.7%)
--- --- --- ----- -----
Commercial and business lending 67,452 64,505 4.6% 54,377 58,606 66,467 1.5%
Commercial real estate -
investor 37,596 49,841 (24.6%) 60,780 56,776 58,687 (35.9%)
Real estate construction 6,467 18,670 (65.4%) 21,419 22,166 27,302 (76.3%)
----- ------ ------ ------ ------
Commercial real estate lending 44,063 68,511 (35.7%) 82,199 78,942 85,989 (48.8%)
------ ------ ------ ------ ------
Total commercial 111,515 133,016 (16.2%) 136,576 137,548 152,456 (26.9%)
Home equity revolving lines of
credit 11,883 11,991 (0.9%) 12,940 15,914 20,446 (41.9%)
Home equity loans 1st liens 6,135 6,131 0.1% 7,898 8,626 8,717 (29.6%)
Home equity loans junior liens 7,149 7,321 (2.3%) 7,296 9,405 10,052 (28.9%)
----- ----- ----- ----- ------
Home equity 25,167 25,443 (1.1%) 28,134 33,945 39,215 (35.8%)
Installment 1,114 1,269 (12.2%) 1,533 1,762 1,838 (39.4%)
Residential mortgage 47,632 47,866 (0.5%) 51,250 52,181 59,359 (19.8%)
------ ------ ------ ------ ------
Total consumer 73,913 74,578 (0.9%) 80,917 87,888 100,412 (26.4%)
------ ------ ------ ------ -------
Total nonaccrual loans $185,428 $207,594 (10.7%) $217,493 $225,436 $252,868 (26.7%)
======== ======== ======== ======== ========
* Annualized.
N/M = Not meaningful.
Associated Banc-Corp
Selected Asset Quality Information (continued)
Dec13 vs Sep13 Dec13 vs Dec12
(in thousands) Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------- ------------ ------------ -------- ------------ ------------ ------------ --------
Restructured loans (accruing)
Commercial and industrial $32,517 $32,145 1.2% $30,970 $29,251 $28,140 15.6%
Commercial real estate -owner
occupied 13,009 14,425 (9.8%) 14,336 12,888 13,852 (6.1%)
Lease financing - - N/M - - - N/M
--- --- --- --- ---
Commercial and business lending 45,526 46,570 (2.2%) 45,306 42,139 41,992 8.4%
Commercial real estate - investor 44,946 35,073 28.1% 37,299 41,253 41,660 7.9%
Real estate construction 3,793 4,825 (21.4%) 5,365 5,540 4,530 (16.3%)
----- ----- ----- ----- -----
Commercial real estate lending 48,739 39,898 22.2% 42,664 46,793 46,190 5.5%
------ ------ ------ ------ ------
Total commercial 94,265 86,468 9.0% 87,970 88,932 88,182 6.9%
Home equity revolving lines of
credit 1,117 1,118 (0.1%) 1,130 880 867 28.8%
Home equity loans 1st liens 1,436 1,628 (11.8%) 1,684 1,783 1,930 (25.6%)
Home equity loans junior liens 7,080 7,113 (0.5%) 7,119 6,893 7,171 (1.3%)
----- ----- ----- ----- -----
Home equity 9,633 9,859 (2.3%) 9,933 9,556 9,968 (3.4%)
Installment 246 416 (40.9%) 570 664 653 (62.3%)
Residential mortgage 19,841 20,300 (2.3%) 20,593 20,941 22,284 (11.0%)
------ ------ ------ ------ ------
Total consumer 29,720 30,575 (2.8%) 31,096 31,161 32,905 (9.7%)
------ ------ ------ ------ ------
Total restructured loans (accruing) $123,985 $117,043 5.9% $119,066 $120,093 $121,087 2.4%
======== ======== ======== ======== ========
Restructured loans in nonaccrual
loans (not included above) $59,585 $69,311 (14.0%) $70,354 $67,811 $80,590 (26.1%)
Loans Past Due 30-89 Days Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and industrial $6,826 $6,518 4.7% $8,516 $10,263 $11,339 (39.8%)
Commercial real estate -owner
occupied 3,106 8,505 (63.5%) 8,105 6,804 11,053 (71.9%)
Lease financing - 1,000 N/M 57 283 12 N/M
--- ----- --- --- ---
Commercial and business lending 9,932 16,023 (38.0%) 16,678 17,350 22,404 (55.7%)
Commercial real estate - investor 23,215 21,747 6.8% 18,269 25,201 13,472 72.3%
Real estate construction 1,954 820 138.3% 797 2,287 3,155 (38.1%)
----- --- --- ----- -----
Commercial real estate lending 25,169 22,567 11.5% 19,066 27,488 16,627 51.4%
------ ------ ------ ------ ------
Total commercial 35,101 38,590 (9.0%) 35,744 44,838 39,031 (10.1%)
Home equity revolving lines of
credit 6,728 6,318 6.5% 7,739 1,832 7,829 (14.1%)
Home equity loans 1st liens 1,110 1,376 (19.3%) 1,857 1,869 1,457 (23.8%)
Home equity loans junior liens 2,842 2,206 28.8% 2,709 2,848 4,252 (33.2%)
----- ----- ----- ----- -----
Home equity 10,680 9,900 7.9% 12,305 6,549 13,538 (21.1%)
Installment 1,150 1,170 (1.7%) 1,434 2,500 2,109 (45.5%)
Residential mortgage 6,118 6,722 (9.0%) 9,920 8,793 9,403 (34.9%)
----- ----- ----- ----- -----
Total consumer 17,948 17,792 0.9% 23,659 17,842 25,050 (28.4%)
------ ------ ------ ------ ------
Total loans past due 30-89 days $53,049 $56,382 (5.9%) $59,403 $62,680 $64,081 (17.2%)
======= ======= ======= ======= =======
Potential Problem Loans Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
Commercial and industrial $113,669 $112,947 0.6% $127,382 $127,367 $128,434 (11.5%)
Commercial real estate -owner
occupied 56,789 61,256 (7.3%) 75,074 93,098 99,592 (43.0%)
Lease financing 1,784 207 N/M 279 251 264 N/M
----- --- --- --- ---
Commercial and business lending 172,242 174,410 (1.2%) 202,735 220,716 228,290 (24.6%)
Commercial real estate - investor 52,429 87,526 (40.1%) 89,342 101,775 107,068 (51.0%)
Real estate construction 5,263 7,540 (30.2%) 9,184 10,040 13,092 (59.8%)
----- ----- ----- ------ ------
Commercial real estate lending 57,692 95,066 (39.3%) 98,526 111,815 120,160 (52.0%)
------ ------ ------ ------- -------
Total commercial 229,934 269,476 (14.7%) 301,261 332,531 348,450 (34.0%)
Home equity revolving lines of
credit 303 170 78.2% 308 450 520 (41.7%)
Home equity loans 1st liens - - N/M - - - N/M
Home equity loans junior liens 1,810 2,067 (12.4%) 2,307 2,871 3,150 (42.5%)
----- ----- ----- ----- -----
Home equity 2,113 2,237 (5.5%) 2,615 3,321 3,670 (42.4%)
Installment 50 67 (25.4%) 83 99 111 (55.0%)
Residential mortgage 3,312 5,342 (38.0%) 5,917 7,882 8,762 (62.2%)
----- ----- ----- ----- -----
Total consumer 5,475 7,646 (28.4%) 8,615 11,302 12,543 (56.4%)
----- ----- ----- ------ ------
Total potential problem loans $235,409 $277,122 (15.1%) $309,876 $343,833 $360,993 (34.8%)
======== ======== ======== ======== ========
N/M = Not meaningful.
Associated Banc-Corp
Net Interest Income Analysis - Taxable Equivalent Basis
Sequential Quarter Three months ended December 31, 2013 Three months ended September 30, 2013
------------------------------------ -------------------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ----------------- ------------- ------- ----------------- -------------
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending $5,882,438 $51,498 3.47% $5,876,745 $52,215 3.53%
Commercial real estate lending 3,736,314 40,241 4.28 3,768,895 37,630 3.96
--------- ------ --------- ------
Total commercial 9,618,752 91,739 3.79 9,645,640 89,845 3.70
Residential mortgage 3,856,944 32,201 3.34 3,714,459 30,479 3.28
Retail 2,272,588 25,851 4.53 2,364,266 26,816 4.51
--------- ------ --------- ------
Total loans 15,748,284 149,791 3.78 15,724,365 147,140 3.72
Investment securities 5,188,616 35,331 2.72 4,980,228 32,282 2.59
Other short-term investments 305,165 1,453 1.90 334,874 1,260 1.51
------- ----- ------- -----
Investments and other 5,493,781 36,784 2.68 5,315,102 33,542 2.52
--------- ------ --------- ------
Total earning assets 21,242,065 186,575 3.50 21,039,467 180,682 3.42
Other assets, net 2,316,660 2,274,110
--------- ---------
Total assets $23,558,725 $23,313,577
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,200,338 $248 0.08% $1,204,743 $249 0.08%
Interest-bearing demand
deposits 2,852,090 1,047 0.15 2,810,962 1,101 0.16
Money market deposits 7,748,650 3,399 0.17 7,556,050 3,449 0.18
Time deposits 1,727,138 2,646 0.61 1,773,760 2,818 0.63
--------- ----- --------- -----
Total interest-bearing deposits 13,528,216 7,340 0.22 13,345,515 7,617 0.23
Federal funds purchased and
securities sold under
agreements to repurchase 613,943 271 0.18 633,594 308 0.19
Other short-term funding 726,551 228 0.12 1,417,113 434 0.12
Long-term funding 1,266,464 6,499 2.05 614,708 6,866 4.47
--------- ----- ------- -----
Total short and long-term
funding 2,606,958 6,998 1.07 2,665,415 7,608 1.14
--------- ----- --------- -----
Total interest-bearing
liabilities 16,135,174 14,338 0.35 16,010,930 15,225 0.38
Noninterest-bearing demand
deposits 4,353,315 4,264,304
Other liabilities 197,598 175,453
Stockholders' equity 2,872,638 2,862,890
--------- ---------
Total liabilities and
stockholders' equity $23,558,725 $23,313,577
=========== ===========
Net interest income and rate
spread (1) $172,237 3.15% $165,457 3.04%
======== ========
Net interest margin (1) 3.23% 3.13%
Taxable equivalent adjustment $5,038 $4,948
====== ======
Net Interest Income Analysis - Taxable Equivalent Basis
Comparable Quarter Three months ended December 31, 2013 Three months ended December 31, 2012
------------------------------------ ------------------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ----------------- ------------- ------- ----------------- -------------
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending $5,882,438 $51,498 3.47% $5,431,195 $53,442 3.92%
Commercial real estate lending 3,736,314 40,241 4.28 3,451,104 35,623 4.11
--------- ------ --------- ------
Total commercial 9,618,752 91,739 3.79 8,882,299 89,065 3.99
Residential mortgage 3,856,944 32,201 3.34 3,485,719 30,126 3.46
Retail 2,272,588 25,851 4.53 2,763,084 31,865 4.59
--------- ------ --------- ------
Total loans 15,748,284 149,791 3.78 15,131,102 151,056 3.98
Investment securities 5,188,616 35,331 2.72 4,545,178 31,759 2.79
Other short-term investments 305,165 1,453 1.90 356,152 2,876 3.22
------- ----- ------- -----
Investments and other 5,493,781 36,784 2.68 4,901,330 34,635 2.83
--------- ------ --------- ------
Total earning assets 21,242,065 186,575 3.50 20,032,432 185,691 3.70
Other assets, net 2,316,660 2,429,454
--------- ---------
Total assets $23,558,725 $22,461,886
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,200,338 $248 0.08% $1,129,983 $225 0.08%
Interest-bearing demand
deposits 2,852,090 1,047 0.15 2,236,826 954 0.17
Money market deposits 7,748,650 3,399 0.17 6,797,306 4,103 0.24
Time deposits 1,727,138 2,646 0.61 2,037,386 3,809 0.74
--------- ----- --------- -----
Total interest-bearing deposits 13,528,216 7,340 0.22 12,201,501 9,091 0.30
Federal funds purchased and
securities sold under
agreements to repurchase 613,943 271 0.18 984,869 558 0.23
Other short-term funding 726,551 228 0.12 550,137 226 0.16
Long-term funding 1,266,464 6,499 2.05 1,103,655 9,140 3.31
--------- ----- --------- -----
Total short and long-term
funding 2,606,958 6,998 1.07 2,638,661 9,924 1.50
--------- ----- --------- -----
Total interest-bearing
liabilities 16,135,174 14,338 0.35 14,840,162 19,015 0.51
Noninterest-bearing demand
deposits 4,353,315 4,448,767
Other liabilities 197,598 194,339
Stockholders' equity 2,872,638 2,978,618
--------- ---------
Total liabilities and
stockholders' equity $23,558,725 $22,461,886
=========== ===========
Net interest income and rate
spread (1) $172,237 3.15% $166,676 3.19%
======== ========
Net interest margin (1) 3.23% 3.32%
Taxable equivalent adjustment $5,038 $5,221
====== ======
(1) The yield on tax exempt
loans and securities is
computed on a taxable
equivalent basis using a tax
rate of 35% for all periods
presented and is net of the
effects of certain disallowed
interest deductions.
(2) Nonaccrual loans and loans
held for sale have been
included in the average
balances.
(3) Interest income includes
net loan fees.
Associated Banc-Corp
Net Interest Income Analysis - Taxable Equivalent Basis
Year Over Year Year ended December 31, 2013 Year ended December 31, 2012
---------------------------- ----------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ----------------- ------------- ------- ----------------- -------------
Earning assets:
Loans: (1) (2) (3)
Commercial and business
lending $5,809,578 $208,039 3.58% $5,139,155 $202,444 3.94%
Commercial real estate
lending 3,705,526 149,539 4.04 3,350,190 140,881 4.21
--------- ------- --------- -------
Total commercial 9,515,104 357,578 3.76 8,489,345 343,325 4.04
Residential mortgage 3,714,544 123,275 3.32 3,330,123 121,399 3.65
Retail 2,433,497 110,338 4.53 2,922,317 135,094 4.62
--------- ------- --------- -------
Total loans 15,663,145 591,191 3.77 14,741,785 599,818 4.07
Investment securities 4,995,331 132,671 2.66 4,469,541 132,793 2.97
Other short-term investments 321,652 5,193 1.61 402,451 6,719 1.67
------- ----- ------- -----
Investments and other 5,316,983 137,864 2.59 4,871,992 139,512 2.86
--------- ------- --------- -------
Total earning assets 20,980,128 729,055 3.47 19,613,777 739,330 3.77
Other assets, net 2,325,630 2,362,580
--------- ---------
Total assets $23,305,758 $21,976,357
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,188,910 $942 0.08% $1,096,692 $851 0.08%
Interest-bearing demand
deposits 2,827,778 4,517 0.16 2,148,459 3,741 0.17
Money market deposits 7,322,476 13,702 0.19 6,148,663 15,336 0.25
Time deposits 1,849,718 12,106 0.65 2,239,709 21,503 0.96
--------- ------ --------- ------
Total interest-bearing
deposits 13,188,882 31,267 0.24 11,633,523 41,431 0.36
Federal funds purchased and
securities sold under
agreements to repurchase 675,574 1,322 0.20 1,177,105 2,687 0.23
Other short-term funding 1,198,264 1,519 0.13 936,376 3,294 0.35
Long-term funding 901,927 29,332 3.25 1,158,731 44,880 3.87
------- ------ --------- ------
Total short and long-term
funding 2,775,765 32,173 1.16 3,272,212 50,861 1.55
--------- ------ --------- ------
Total interest-bearing
liabilities 15,964,647 63,440 0.40 14,905,735 92,292 0.62
Noninterest-bearing demand
deposits 4,249,313 3,948,846
Other liabilities 199,486 172,788
Stockholders' equity 2,892,312 2,948,988
--------- ---------
Total liabilities and
stockholders' equity $23,305,758 $21,976,357
=========== ===========
Net interest income and rate
spread (1) $665,615 3.07% $647,038 3.15%
======== ========
Net interest margin (1) 3.17% 3.30%
Taxable equivalent adjustment $20,072 $21,046
======= =======
(1) The yield on tax exempt
loans and securities is
computed on a taxable
equivalent basis using a tax
rate of 35% for all periods
presented and is net of the
effects of certain disallowed
interest deductions.
(2) Nonaccrual loans and loans
held for sale have been
included in the average
balances.
(3) Interest income includes
net loan fees.
Net Interest Income Analysis - Taxable Equivalent Basis
Year Over Year Years Ended December 31, 2013 vs
Change December 31, 2012
---------------------------------
Change in Change in $ Balances
(in thousands) Balance Income / Expense Growth / Decline
------- ----------------- -----------------
Earning assets:
Loans:
Commercial and
business lending $670,423 $5,595 13.0%
Commercial real
estate lending 355,336 8,658 10.6
------- -----
Total commercial 1,025,759 14,253 12.1
Residential
mortgage 384,421 1,876 11.5
Retail (488,820) (24,756) (16.7)
-------- -------
Total loans 921,360 (8,627) 6.2
Investment
securities 525,790 (122) 11.8
Other short-term
investments (80,799) (1,526) (20.1)
------- ------
Investments and
other 444,991 (1,648) 9.1
------- ------
Total earning
assets 1,366,351 (10,275) 7.0
Other assets, net (36,950) (1.6)
-------
Total assets $1,329,401 6.0
==========
Interest-bearing
liabilities:
Savings deposits $92,218 $91 8.4%
Interest-bearing
demand deposits 679,319 776 31.6
Money market
deposits 1,173,813 (1,634) 19.1
Time deposits (389,991) (9,397) (17.4)
-------- ------
Total interest-
bearing deposits 1,555,359 (10,164) 13.4
Federal funds
purchased and
securities sold
under
agreements to
repurchase (501,531) (1,365) (42.6)
Other short-term
funding 261,888 (1,775) 28.0
Long-term
funding (256,804) (15,548) (22.2)
-------- -------
Total short and
long-term
funding (496,447) (18,688) (15.2)
-------- -------
Total interest-
bearing
liabilities 1,058,912 (28,852) 7.1
Noninterest-
bearing demand
deposits 300,467 7.6
Other liabilities 26,698 15.5
Stockholders'
equity (56,676) (1.9)
-------
Total liabilities
and
stockholders'
equity $1,329,401 6.0
==========
Net interest
income and rate
spread $18,577
=======
Net interest
margin
Taxable
equivalent
adjustment $(974)
=====
Associated Banc-Corp
Financial Summary and Comparison
Period End Loan Composition Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and industrial $4,822,680 $4,703,056 2.5% $4,752,838 $4,651,143 $4,502,021 7.1%
Commercial real estate -owner
occupied 1,114,715 1,147,352 (2.8%) 1,174,866 1,199,513 1,219,747 (8.6%)
Lease financing 55,483 51,727 7.3% 55,084 57,908 64,196 (13.6%)
------ ------ ------ ------ ------
Commercial and business lending 5,992,878 5,902,135 1.5% 5,982,788 5,908,564 5,785,964 3.6%
Commercial real estate - investor 2,939,456 2,847,152 3.2% 3,010,992 2,900,167 2,906,759 1.1%
Real estate construction 896,248 834,744 7.4% 800,569 729,145 655,381 36.8%
------- ------- ------- ------- -------
Commercial real estate lending 3,835,704 3,681,896 4.2% 3,811,561 3,629,312 3,562,140 7.7%
--------- --------- --------- --------- ---------
Total commercial 9,828,582 9,584,031 2.6% 9,794,349 9,537,876 9,348,104 5.1%
Home equity revolving lines of credit 874,840 875,703 (0.1%) 888,162 904,187 936,065 (6.5%)
Home equity loans 1st liens 742,120 794,912 (6.6%) 863,779 940,017 1,013,757 (26.8%)
Home equity loans junior liens 208,054 220,763 (5.8%) 234,292 254,203 269,672 (22.8%)
------- ------- ------- ------- -------
Home equity 1,825,014 1,891,378 (3.5%) 1,986,233 2,098,407 2,219,494 (17.8%)
Installment 407,074 420,268 (3.1%) 434,029 447,445 466,727 (12.8%)
Residential mortgage 3,835,591 3,690,177 3.9% 3,531,988 3,467,834 3,376,697 13.6%
--------- --------- --------- --------- ---------
Total consumer 6,067,679 6,001,823 1.1% 5,952,250 6,013,686 6,062,918 0.1%
--------- --------- --------- --------- ---------
Total loans $15,896,261 $15,585,854 2.0% $15,746,599 $15,551,562 $15,411,022 3.1%
=========== =========== =========== =========== ===========
Period End Deposit and Customer
Funding Composition Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Noninterest-bearing demand $4,626,312 $4,453,663 3.9% $4,259,776 $4,453,109 $4,759,556 (2.8%)
Savings 1,159,512 1,195,944 (3.0%) 1,211,567 1,197,134 1,109,861 4.5%
Interest-bearing demand 2,889,705 2,735,529 5.6% 2,802,277 2,966,934 2,554,479 13.1%
Money market 6,906,442 8,199,281 (15.8%) 7,040,317 6,836,678 6,518,075 6.0%
Brokered CDs 50,450 56,024 (9.9%) 59,206 49,919 26,270 92.0%
Other time 1,634,746 1,697,467 (3.7%) 1,759,293 1,917,520 1,971,624 (17.1%)
--------- --------- --------- --------- ---------
Total deposits 17,267,167 18,337,908 (5.8%) 17,132,436 17,421,294 16,939,865 1.9%
Customer repo sweeps 419,247 515,555 (18.7%) 489,700 617,038 564,038 (25.7%)
Customer repo term - - N/M - 4,882 115,032 (100.0%)
--- --- --- ----- -------
Total customer funding 419,247 515,555 (18.7%) 489,700 621,920 679,070 (38.3%)
------- ------- ------- ------- -------
Total deposits and customer funding $17,686,414 $18,853,463 (6.2%) $17,622,136 $18,043,214 $17,618,935 0.4%
=========== =========== =========== =========== ===========
1,936,403 2,222,810 (12.9%) 2,135,306 2,054,714 1,684,745 14.9%
Network transaction deposits included
above in interest-bearing demand and
money market
Brokered CDs 50,450 56,024 (9.9%) 59,206 49,919 26,270 92.0%
------ ------ ------ ------ ------
Total network and brokered funding 1,986,853 2,278,834 (12.8%) 2,194,512 2,104,633 1,711,015 16.1%
--------- --------- --------- --------- ---------
Net customer deposits and funding (1) 15,699,561 16,574,629 (5.3%) 15,427,624 15,938,581 15,907,920 (1.3%)
========== ========== ========== ========== ==========
(1) Total deposits and customer funding excluding total network and brokered funding.
Quarter Average Loan Composition Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and industrial $4,709,435 $4,680,582 0.6% $4,635,892 $4,358,486 $4,182,852 12.6%
Commercial real estate -owner
occupied 1,119,186 1,142,919 (2.1%) 1,169,124 1,196,912 1,185,846 (5.6%)
Lease financing 53,817 53,244 1.1% 55,400 59,638 62,497 (13.9%)
------ ------ ------ ------ ------
Commercial and business lending 5,882,438 5,876,745 0.1% 5,860,416 5,615,036 5,431,195 8.3%
Commercial real estate - investor 2,878,176 2,940,115 (2.1%) 2,951,524 2,899,930 2,821,023 2.0%
Real estate construction 858,138 828,780 3.5% 770,584 692,579 630,081 36.2%
------- ------- ------- ------- -------
Commercial real estate lending 3,736,314 3,768,895 (0.9%) 3,722,108 3,592,509 3,451,104 8.3%
--------- --------- --------- --------- ---------
Total commercial 9,618,752 9,645,640 (0.3%) 9,582,524 9,207,545 8,882,299 8.3%
Home equity revolving lines of credit 876,938 882,478 (0.6%) 896,931 922,084 962,263 (8.9%)
Home equity loans 1st liens 767,857 826,653 (7.1%) 902,554 976,466 1,047,207 (26.7%)
Home equity loans junior liens 214,557 227,021 (5.5%) 242,796 262,193 280,051 (23.4%)
------- ------- ------- ------- -------
Home equity 1,859,352 1,936,152 (4.0%) 2,042,281 2,160,743 2,289,521 (18.8%)
Installment 413,236 428,114 (3.5%) 441,260 457,409 473,563 (12.7%)
Residential mortgage 3,856,944 3,714,459 3.8% 3,661,742 3,622,455 3,485,719 10.6%
--------- --------- --------- --------- ---------
Total consumer 6,129,532 6,078,725 0.8% 6,145,283 6,240,607 6,248,803 (1.9%)
--------- --------- --------- --------- ---------
Total loans $15,748,284 $15,724,365 0.2% $15,727,807 $15,448,152 $15,131,102 4.1%
=========== =========== =========== =========== ===========
Quarter Average Deposit Composition Dec13 vs Sep13 Dec13 vs Dec12
Dec 31, 2013 Sep 30, 2013 % Change Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Noninterest-bearing demand $4,353,315 $4,264,304 2.1% $4,191,704 $4,185,924 $4,448,767 (2.1%)
Savings 1,200,338 1,204,743 (0.4%) 1,207,959 1,141,781 1,129,983 6.2%
Interest-bearing demand 2,852,090 2,810,962 1.5% 2,867,524 2,779,929 2,236,826 27.5%
Money market 7,748,650 7,556,050 2.5% 6,930,554 7,044,344 6,797,306 14.0%
Time deposits 1,727,138 1,773,760 (2.6%) 1,907,337 1,994,406 2,037,386 (15.2%)
--------- --------- --------- --------- ---------
Total deposits $17,881,531 $17,609,819 1.5% $17,105,078 $17,146,384 $16,650,268 7.4%
=========== =========== =========== =========== ===========
SOURCE Associated Banc-Corp
