Exhibit 99.1
 | NEWS RELEASE Investor Contact: Teresa Gutierrez, 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 Reports 2015 Earnings of $1.19 per share on
Record Loans and Deposits
GREEN BAY, Wis. -- January 21, 2016 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common shareholders of $181 million, or $1.19 per common share, for the year ended December 31, 2015. This compares to net income available to common shareholders of $186 million, or $1.16 per common share, for the year ended December 31, 2014.
For the quarter ended December 31, 2015, the Company reported earnings of $0.27 per common share. This compares to $0.31 per common share for the quarter ended December 31, 2014.
“In 2015, we reached record levels of loans and deposits. We are particularly pleased by our year over year deposit growth in a competitive environment and transforming industry. In addition, our successful insurance business acquisition drove year over year fee income growth of 13%. We achieved these results with essentially flat expenses, when you adjust for the acquisition,” said President and CEO Philip B. Flynn. “Over the past five years, we have rebuilt and diversified our loan portfolio. We grew several specialized commercial lending businesses, including an oil and gas business focused entirely on reserve secured lending. Despite the recent energy price volatility, we remain committed to the energy business and we will continue to proactively manage the risk of our portfolio throughout this current cycle. As we enter 2016, we remain focused on enhancing our customer solutions and driving shareholder value.”
2015 HIGHLIGHTS
• | Average loans grew $1.4 billion, or 8% from a year ago to $18.3 billion |
• | Commercial lending accounted for 55% of average loan growth |
• | Average deposits grew $2.3 billion, or 13% from a year ago to $19.9 billion |
• | Net interest income of $676 million decreased $5 million, or 1% from last year |
• | Net interest margin of 2.84% declined from 3.08% in 2014 |
• | Noninterest expenses of $697 million increased $18 million, or 3% from last year |
• | Substantially all the increase was attributable to the insurance business acquisition |
• | During the year, the Company repurchased $93 million, or approximately 5 million shares, of common stock at an average cost of $18.73 per share |
• | Return on average common equity Tier 1 was 9.9% and return on average tangible common equity was 10.0% |
• | Total dividends per common share of $0.41 were up 11% from last year |
• | Capital ratios remain strong with a common equity tier 1 ratio of 9.5% at year end |
FOURTH QUARTER AND 2015 FINANCIAL RESULTS
Loans
Full year 2015 average loans of $18.3 billion were up $1.4 billion, or 8% from 2014. Total commercial lending average balances grew $772 million, or 7% from the prior year. Commercial and business lending average balances grew $540 million, or 8% from 2014. Commercial real estate lending average balances grew $232 million, or 6% from 2014. Residential lending average balances increased $675 million, or 14% from the prior year.
Fourth quarter 2015 average loans of $18.5 billion increased $90 million, or 0.5% from the third quarter and increased $1.2 billion, or 7% from the year ago quarter. Total commercial lending average balances decreased $84 million, or 1% from the prior quarter and increased $479 million, or 4% from the year ago quarter. Commercial and business lending average balances declined $198 million, or 3% from the third quarter and was attributed to lower general commercial and mortgage warehouse activity. Commercial and business lending average balances were up $171 million, or 3% from the year ago quarter. Commercial real estate lending average balances grew $113 million, or 3% from the third quarter and are up $307 million, or 8% from the year ago quarter. Residential lending average balances grew $187 million, or 3% from the prior quarter and grew $754 million, or 15% from the year ago quarter.
For the period ended December 31, 2015, total loans of $18.7 billion were up $190 million, or 1% from September 30, 2015, and were up $1.1 billion, or 6% from December 31, 2014. Total commercial lending was up $103 million, or 1% from the prior quarter end, and was up $474 million, or 4% from the prior year end. Total consumer loans were up $87 million or 1% from the prior quarter end and were up $646 million, or 10% from the prior year end.
For the period ended December 31, 2015, the Company’s oil and gas exposure was $1 billion of commitments with $752 million of outstandings, representing approximately 4% of the loan portfolio. The loans are all reserve secured. The portfolio was comprised of approximately 50 credits made primarily to small and mid-sized companies.
Deposits
Full year 2015 average deposits of $19.9 billion were up $2.3 billion, or 13% from 2014. Noninterest-bearing demand deposits and interest-bearing demand deposits average balances were up $329 million and $217 million, respectively, from the prior year. Money market average balances were up $1.6 billion, or 21% from 2014. Savings and time deposits average balances had modest growth in 2015.
Fourth quarter 2015 average deposits of $20.6 billion were up $322 million, or 2% compared to the third quarter and increased $2.1 billion, or 11% from the year ago quarter. Noninterest-bearing demand deposits average balances increased $394 million, or 9% from the third quarter and were up $601 million, or 14% from the year ago quarter. Interest-bearing demand deposits average balances decreased $49 million, or 2% from the third quarter, and were modestly up from the year ago quarter. Money market average balances were slightly down compared to the third quarter, and up $1.3 billion, or 16% from the year ago quarter. Average savings balances were flat from the prior quarter and up $94 million, or 7% from the year ago quarter. Average time deposits were down $20 million, or 1% from the third quarter and up $55 million, or 4% from the year ago quarter.
For the period ended December 31, 2015, total deposits of $21.0 billion were up $449 million, or 2% from September 30, 2015, and were up $2.2 billion, or 12% from December 31, 2014. Noninterest-bearing demand deposit balances were up $905 million, or 19% from the prior quarter end and up $1.1 billion, or 23% from the prior year end. Money market balances decreased $414 million, or 4% from the prior quarter end and up $778 million, or 9% from December 31, 2014. Interest-bearing demand deposits were up $29 million, or 1% from the prior quarter end and up $318 million, or 10% from the prior year end. Savings accounts were down $12 million, or 1% from prior quarter end and up $99 million, or 8% from the prior year end.
Net Interest Income and Net Interest Margin
Net interest income of $676 million for 2015 was down $5 million, or 1% from 2014. Fourth quarter net interest income of $171 million increased $1 million, or 1% from the prior quarter and was down $3 million, or 2% compared to the year ago quarter.
Net interest margin of 2.84% for 2015 reflected 24 basis points of compression from 2014. Fourth quarter net interest margin of 2.82% was flat to the prior quarter and 22 basis points lower than the year ago quarter. The majority of the year over year decline was attributed to commercial loan yield compression. In addition, funding costs increased 6 basis points from the year ago quarter, primarily related to the carrying cost of the Company’s $500 million of senior and subordinated debt issued in November 2014.
Fourth quarter total earning assets yield of 3.14% was up 1 basis point from the prior quarter. Asset yield compression was offset by $2 million in interest recoveries and deferred fees in the fourth quarter. The net interest margin impact of this activity was approximately 3 basis points for the quarter.
Total interest-bearing funding costs of 0.41% in the fourth quarter were up 1 basis point from the prior quarter.
Noninterest Income
Noninterest income of $328 million for 2015 was up $38 million, or 13% compared to 2014. Insurance commissions were up $31 million, or 70% from the prior year due to the insurance business acquisition in the first quarter of 2015. Mortgage banking income increased $11 million from the prior year due to higher volumes and margins.
Fourth quarter noninterest income was $82 million, up $2 million, or 2% from the third quarter and up $12 million, or 18% from the year ago quarter. Mortgage banking income increased $2 million from the third quarter, primarily driven by higher volumes and positive interest rate marks. Insurance commissions were modestly up from the third quarter, and up $7 million from the year ago quarter. Capital market fees increased $1 million from the prior quarter due to increased customer derivatives activity. Fourth quarter net investment securities gains of $4 million were primarily related to the continued restructuring of the Company’s investment portfolio from Fannie Mae and Freddie Mac mortgage backed securities into Ginnie Mae securities.
Noninterest Expense
Total noninterest expense of $697 million in 2015 was up $18 million, or 3% compared to 2014, and was substantially attributable to increased personnel expense related to the insurance business acquisition. Technology expense increased $5 million, or 9% from the prior year. Year over year increases in occupancy and FDIC expense were offset by decreases in several categories including foreclosure/OREO and equipment expense.
Total noninterest expense was $175 million in the fourth quarter, up $3 million, or 2% from both the third quarter and the year ago quarter. Personnel expense decreased $1 million in the fourth quarter due to reduced incentive compensation and lower staffing levels; partially offset by increased health and benefits costs. Business development and advertising increased $2 million from the third quarter driven by the Company’s fall marketing campaign. FDIC expense increased $2 million in the fourth quarter related to an increase in FDIC risk premiums. Occupancy was higher in the fourth quarter due to a $2 million expense related to the consolidation of 10 branches during the quarter. Technology, equipment, and legal fees had declines in the fourth quarter.
Taxes
2015 income taxes of $81 million were down $4 million from 2014. The effective tax rate for 2015 was 30% compared to 31% last year.
Credit
Net charge offs of $8 million for the fourth quarter were flat to the third quarter, and up $3 million from the year ago quarter. Potential problem loans increased to $302 million from $264 million in the third quarter, and increased from $190 million in the year ago quarter, primarily attributed to migration within the oil and gas portfolio.
The fourth quarter provision for credit losses was $20 million, up $12 million from the prior quarter, due primarily to an increase in reserves related to energy exposure, driven by the low and volatile price of oil and gas and the resulting downward migration in the portfolio. The allowance for loan losses related to the Company’s energy portfolio was $42 million as of December 31, 2015, up from $29 million at the prior quarter end, and up from $17 million at the prior year end. The additional reserves increased the Company’s energy reserve as a percent of its energy loans to 5.6% at year end, compared to 3.8% at the prior quarter end, and 2.3% at the prior year end.
Nonaccrual loans of $178 million were up $31 million in the fourth quarter, and were modestly higher than a year ago quarter, primarily attributable to the downgrade of two commercial loans. The nonaccrual loans to total loans ratio increased to 0.95% in the fourth quarter, up from 0.80% in the prior quarter, and down from 1.01% in the year ago quarter.
The Company’s allowance for loan losses was $274 million, up $12 million from the third quarter, and up $8 million from the year ago quarter. The allowance for loan losses to total loans ratio increased to 1.47% in the fourth quarter, from 1.42% in the third quarter.
Capital
The Company’s capital position remains strong, with a common equity Tier 1 ratio of 9.5% at December 31, 2015. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
FOURTH QUARTER 2015 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 21, 2016. 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 877-407-8037. The slide presentation for the call will be available on the company's website just prior to the call. The number for international callers is 201-689-8037. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2015 earnings call.
An audio archive of the webcast will be available on the company’s website at http://investor.associatedbank.com approximately fifteen minutes after the call is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of over $27 billion and is one of the top 50 publicly traded U.S. bank holding companies. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release contains references to measures which are not defined in generally accepted accounting principles (“GAAP”), including “efficiency ratio” and “common equity Tier 1.” Information concerning these non-GAAP financial measures can be found in the attached tables.
# # #
Associated Banc-Corp Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||||||||||||
(in thousands) | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr $ Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr $ Change | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 374,921 | $ | 303,701 | $ | 71,220 | $ | 375,369 | $ | 355,541 | $ | 444,113 | $ | (69,192 | ) | |||||||||||||
Interest-bearing deposits in other financial institutions | 79,764 | 70,023 | 9,741 | 101,573 | 488,426 | 571,924 | (492,160 | ) | ||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 19,000 | 36,490 | (17,490 | ) | 39,850 | 3,380 | 16,030 | 2,970 | ||||||||||||||||||||
Securities held to maturity, at amortized cost | 1,168,230 | 604,799 | 563,431 | 532,382 | 438,047 | 404,455 | 763,775 | |||||||||||||||||||||
Securities available for sale, at fair value | 4,967,414 | 5,403,656 | (436,242 | ) | 5,407,998 | 5,358,310 | 5,396,812 | (429,398 | ) | |||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 147,240 | 160,871 | (13,631 | ) | 160,765 | 189,222 | 189,107 | (41,867 | ) | |||||||||||||||||||
Loans held for sale | 124,915 | 105,144 | 19,771 | 151,146 | 159,963 | 154,935 | (30,020 | ) | ||||||||||||||||||||
Loans | 18,714,343 | 18,524,773 | 189,570 | 18,303,252 | 17,979,032 | 17,593,846 | 1,120,497 | |||||||||||||||||||||
Allowance for loan losses | (274,264 | ) | (262,536 | ) | (11,728 | ) | (261,538 | ) | (265,268 | ) | (266,302 | ) | (7,962 | ) | ||||||||||||||
Loans, net | 18,440,079 | 18,262,237 | 177,842 | 18,041,714 | 17,713,764 | 17,327,544 | 1,112,535 | |||||||||||||||||||||
Premises and equipment, net | 267,606 | 271,119 | (3,513 | ) | 274,338 | 274,591 | 274,688 | (7,082 | ) | |||||||||||||||||||
Goodwill | 968,844 | 968,844 | — | 968,844 | 968,774 | 929,168 | 39,676 | |||||||||||||||||||||
Mortgage servicing rights | 61,341 | 61,402 | (61 | ) | 61,192 | 59,733 | 60,145 | 1,196 | ||||||||||||||||||||
Other intangible assets | 16,458 | 16,978 | (520 | ) | 17,863 | 18,251 | 7,437 | 9,021 | ||||||||||||||||||||
Trading assets | 32,192 | 43,752 | (11,560 | ) | 35,386 | 42,336 | 35,163 | (2,971 | ) | |||||||||||||||||||
Other assets | 1,047,017 | 1,158,227 | (111,210 | ) | 1,016,725 | 998,402 | 1,010,253 | 36,764 | ||||||||||||||||||||
Total assets | $ | 27,715,021 | $ | 27,467,243 | $ | 247,778 | $ | 27,185,145 | $ | 27,068,740 | $ | 26,821,774 | $ | 893,247 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 5,562,466 | $ | 4,657,261 | $ | 905,205 | $ | 4,332,171 | $ | 4,570,872 | $ | 4,505,272 | $ | 1,057,194 | ||||||||||||||
Interest-bearing deposits | 15,445,199 | 15,901,134 | (455,935 | ) | 14,937,392 | 15,280,720 | 14,258,232 | 1,186,967 | ||||||||||||||||||||
Total deposits | 21,007,665 | 20,558,395 | 449,270 | 19,269,563 | 19,851,592 | 18,763,504 | 2,244,161 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 431,438 | 702,569 | (271,131 | ) | 689,699 | 587,272 | 493,991 | (62,553 | ) | |||||||||||||||||||
Other short-term funding | 402,978 | 319,766 | 83,212 | 905,837 | 75,265 | 574,297 | (171,319 | ) | ||||||||||||||||||||
Long-term funding | 2,679,350 | 2,679,542 | (192 | ) | 3,179,734 | 3,429,925 | 3,930,117 | (1,250,767 | ) | |||||||||||||||||||
Trading liabilities | 33,430 | 45,817 | (12,387 | ) | 37,169 | 44,730 | 37,329 | (3,899 | ) | |||||||||||||||||||
Accrued expenses and other liabilities | 222,914 | 207,357 | 15,557 | 198,752 | 197,818 | 222,285 | 629 | |||||||||||||||||||||
Total liabilities | 24,777,775 | 24,513,446 | 264,329 | 24,280,754 | 24,186,602 | 24,021,523 | 756,252 | |||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||
Preferred equity | 121,379 | 121,379 | — | 122,015 | 59,727 | 59,727 | 61,652 | |||||||||||||||||||||
Common stock | 1,642 | 1,642 | — | 1,642 | 1,674 | 1,665 | (23 | ) | ||||||||||||||||||||
Surplus | 1,458,522 | 1,455,034 | 3,488 | 1,450,200 | 1,505,170 | 1,484,933 | (26,411 | ) | ||||||||||||||||||||
Retained earnings | 1,593,239 | 1,570,199 | 23,040 | 1,538,684 | 1,509,967 | 1,497,818 | 95,421 | |||||||||||||||||||||
Accumulated other comprehensive income (loss) | (32,616 | ) | 15,376 | (47,992 | ) | 2,594 | 24,800 | (4,850 | ) | (27,766 | ) | |||||||||||||||||
Treasury stock | (204,920 | ) | (209,833 | ) | 4,913 | (210,744 | ) | (219,200 | ) | (239,042 | ) | 34,122 | ||||||||||||||||
Total stockholders’ equity | 2,937,246 | 2,953,797 | (16,551 | ) | 2,904,391 | 2,882,138 | 2,800,251 | 136,995 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,715,021 | $ | 27,467,243 | $ | 247,778 | $ | 27,185,145 | $ | 27,068,740 | $ | 26,821,774 | $ | 893,247 | ||||||||||||||
Page 1
Associated Banc-Corp Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||||||
Comp Qtr | Comp YTD | |||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 4Q15 | 4Q14 | $ Change | % Change | YTD Dec 2015 | YTD Dec 2014 | $ Change | % Change | ||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 155,602 | $ | 156,536 | $ | (934 | ) | (0.6 | )% | $ | 615,627 | $ | 598,582 | $ | 17,045 | 2.8 | % | |||||||||||||
Interest and dividends on investment securities: | ||||||||||||||||||||||||||||||
Taxable | 26,395 | 25,061 | 1,334 | 5.3 | % | 100,292 | 102,464 | (2,172 | ) | (2.1 | )% | |||||||||||||||||||
Tax-exempt | 7,783 | 7,580 | 203 | 2.7 | % | 31,152 | 29,064 | 2,088 | 7.2 | % | ||||||||||||||||||||
Other interest | 1,639 | 1,821 | (182 | ) | (10.0 | )% | 6,591 | 6,635 | (44 | ) | (0.7 | )% | ||||||||||||||||||
Total interest income | 191,419 | 190,998 | 421 | 0.2 | % | 753,662 | 736,745 | 16,917 | 2.3 | % | ||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||
Interest on deposits | 8,844 | 7,319 | 1,525 | 20.8 | % | 33,125 | 26,294 | 6,831 | 26.0 | % | ||||||||||||||||||||
Interest on Federal funds purchased and securities sold under agreements to repurchase | 229 | 218 | 11 | 5.0 | % | 943 | 1,219 | (276 | ) | (22.6 | )% | |||||||||||||||||||
Interest on other short-term funding | 186 | 156 | 30 | 19.2 | % | 465 | 785 | (320 | ) | (40.8 | )% | |||||||||||||||||||
Interest on long-term funding | 10,692 | 8,644 | 2,048 | 23.7 | % | 42,851 | 27,480 | 15,371 | 55.9 | % | ||||||||||||||||||||
Total interest expense | 19,951 | 16,337 | 3,614 | 22.1 | % | 77,384 | 55,778 | 21,606 | 38.7 | % | ||||||||||||||||||||
Net Interest Income | 171,468 | 174,661 | (3,193 | ) | (1.8 | )% | 676,278 | 680,967 | (4,689 | ) | (0.7 | )% | ||||||||||||||||||
Provision for credit losses | 20,000 | 5,000 | 15,000 | 300.0 | % | 37,500 | 16,000 | 21,500 | 134.4 | % | ||||||||||||||||||||
Net interest income after provision for credit losses | 151,468 | 169,661 | (18,193 | ) | (10.7 | )% | 638,778 | 664,967 | (26,189 | ) | (3.9 | )% | ||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||||||
Trust service fees | 11,965 | 12,457 | (492 | ) | (3.9 | )% | 48,840 | 48,403 | 437 | 0.9 | % | |||||||||||||||||||
Service charges on deposit accounts | 16,577 | 17,006 | (429 | ) | (2.5 | )% | 65,471 | 68,779 | (3,308 | ) | (4.8 | )% | ||||||||||||||||||
Card-based and other nondeposit fees | 12,694 | 12,019 | 675 | 5.6 | % | 51,325 | 49,512 | 1,813 | 3.7 | % | ||||||||||||||||||||
Insurance commissions | 17,997 | 10,593 | 7,404 | 69.9 | % | 75,363 | 44,421 | 30,942 | 69.7 | % | ||||||||||||||||||||
Brokerage and annuity commissions | 3,694 | 3,496 | 198 | 5.7 | % | 15,378 | 16,089 | (711 | ) | (4.4 | )% | |||||||||||||||||||
Total core fee-based revenue | 62,927 | 55,571 | 7,356 | 13.2 | % | 256,377 | 227,204 | 29,173 | 12.8 | % | ||||||||||||||||||||
Mortgage banking, net | 8,271 | 2,928 | 5,343 | 182.5 | % | 32,263 | 21,320 | 10,943 | 51.3 | % | ||||||||||||||||||||
Capital market fees, net | 3,423 | 2,613 | 810 | 31.0 | % | 10,752 | 9,973 | 779 | 7.8 | % | ||||||||||||||||||||
Bank owned life insurance income | 2,092 | 2,739 | (647 | ) | (23.6 | )% | 9,796 | 13,576 | (3,780 | ) | (27.8 | )% | ||||||||||||||||||
Asset gains (losses), net | (1,492 | ) | 3,727 | (5,219 | ) | (140.0 | )% | 1,592 | 10,288 | (8,696 | ) | (84.5 | )% | |||||||||||||||||
Investment securities gains, net | 4,095 | 25 | 4,070 | N/M | 8,133 | 494 | 7,639 | N/M | ||||||||||||||||||||||
Other | 2,580 | 2,040 | 540 | 26.5 | % | 9,496 | 7,464 | 2,032 | 27.2 | % | ||||||||||||||||||||
Total noninterest income | 81,896 | 69,643 | 12,253 | 17.6 | % | 328,409 | 290,319 | 38,090 | 13.1 | % | ||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||
Personnel expense | 100,469 | 97,258 | 3,211 | 3.3 | % | 404,741 | 390,399 | 14,342 | 3.7 | % | ||||||||||||||||||||
Occupancy | 14,718 | 14,589 | 129 | 0.9 | % | 60,896 | 57,677 | 3,219 | 5.6 | % | ||||||||||||||||||||
Equipment | 5,695 | 6,148 | (453 | ) | (7.4 | )% | 23,209 | 24,784 | (1,575 | ) | (6.4 | )% | ||||||||||||||||||
Technology | 13,953 | 14,581 | (628 | ) | (4.3 | )% | 60,613 | 55,472 | 5,141 | 9.3 | % | |||||||||||||||||||
Business development and advertising | 7,652 | 8,538 | (886 | ) | (10.4 | )% | 25,772 | 26,144 | (372 | ) | (1.4 | )% | ||||||||||||||||||
Other intangible amortization | 520 | 775 | (255 | ) | (32.9 | )% | 3,094 | 3,747 | (653 | ) | (17.4 | )% | ||||||||||||||||||
Loan expense | 4,120 | 3,646 | 474 | 13.0 | % | 14,102 | 13,866 | 236 | 1.7 | % | ||||||||||||||||||||
Legal and professional fees | 3,963 | 4,257 | (294 | ) | (6.9 | )% | 17,052 | 17,485 | (433 | ) | (2.5 | )% | ||||||||||||||||||
Foreclosure / OREO expense | 1,270 | 1,168 | 102 | 8.7 | % | 4,494 | 6,722 | (2,228 | ) | (33.1 | )% | |||||||||||||||||||
FDIC expense | 7,500 | 6,956 | 544 | 7.8 | % | 26,000 | 23,761 | 2,239 | 9.4 | % | ||||||||||||||||||||
Other | 15,032 | 13,889 | 1,143 | 8.2 | % | 57,426 | 59,184 | (1,758 | ) | (3.0 | )% | |||||||||||||||||||
Total noninterest expense | 174,892 | 171,805 | 3,087 | 1.8 | % | 697,399 | 679,241 | 18,158 | 2.7 | % | ||||||||||||||||||||
Income before income taxes | 58,472 | 67,499 | (9,027 | ) | (13.4 | )% | 269,788 | 276,045 | (6,257 | ) | (2.3 | )% | ||||||||||||||||||
Income tax expense | 15,681 | 18,761 | (3,080 | ) | (16.4 | )% | 81,487 | 85,536 | (4,049 | ) | (4.7 | )% | ||||||||||||||||||
Net income | 42,791 | 48,738 | (5,947 | ) | (12.2 | )% | 188,301 | 190,509 | (2,208 | ) | (1.2 | )% | ||||||||||||||||||
Preferred stock dividends | 2,198 | 1,225 | 973 | 79.4 | % | 7,155 | 5,002 | 2,153 | 43.0 | % | ||||||||||||||||||||
Net income available to common equity | $ | 40,593 | $ | 47,513 | $ | (6,920 | ) | (14.6 | )% | $ | 181,146 | $ | 185,507 | $ | (4,361 | ) | (2.4 | )% | ||||||||||||
Earnings Per Common Share: | ||||||||||||||||||||||||||||||
Basic | $ | 0.27 | $ | 0.31 | $ | (0.04 | ) | (12.9 | )% | $ | 1.20 | $ | 1.17 | $ | 0.03 | 2.6 | % | |||||||||||||
Diluted | $ | 0.27 | $ | 0.31 | $ | (0.04 | ) | (12.9 | )% | $ | 1.19 | $ | 1.16 | $ | 0.03 | 2.6 | % | |||||||||||||
Average Common Shares Outstanding: | ||||||||||||||||||||||||||||||
Basic | 148,834 | 151,931 | (3,097 | ) | (2.0 | )% | 149,350 | 157,286 | (7,936 | ) | (5.0 | )% | ||||||||||||||||||
Diluted | 150,163 | 153,083 | (2,920 | ) | (1.9 | )% | 150,603 | 158,254 | (7,651 | ) | (4.8 | )% | ||||||||||||||||||
N/M = Not meaningful | ||||||||||||||||||||||||||||||
Page 2
Associated Banc-Corp Consolidated Statements of Income (Unaudited)—Quarterly Trend | ||||||||||||||||||||||||||||||||||
Seql Qtr | Comp Qtr | |||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 4Q15 | 3Q15 | $ Change | % Change | 2Q15 | 1Q15 | 4Q14 | $ Change | % Change | |||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 155,602 | $ | 155,663 | $ | (61 | ) | — | % | $ | 152,417 | $ | 151,945 | $ | 156,536 | $ | (934 | ) | (0.6 | )% | ||||||||||||||
Interest and dividends on investment securities: | ||||||||||||||||||||||||||||||||||
Taxable | 26,395 | 24,937 | 1,458 | 5.8 | % | 23,868 | 25,092 | 25,061 | 1,334 | 5.3 | % | |||||||||||||||||||||||
Tax-exempt | 7,783 | 7,917 | (134 | ) | (1.7 | )% | 7,565 | 7,887 | 7,580 | 203 | 2.7 | % | ||||||||||||||||||||||
Other interest | 1,639 | 1,489 | 150 | 10.1 | % | 1,771 | 1,692 | 1,821 | (182 | ) | (10.0 | )% | ||||||||||||||||||||||
Total interest income | 191,419 | 190,006 | 1,413 | 0.7 | % | 185,621 | 186,616 | 190,998 | 421 | 0.2 | % | |||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||||||
Interest on deposits | 8,844 | 8,521 | 323 | 3.8 | % | 8,141 | 7,619 | 7,319 | 1,525 | 20.8 | % | |||||||||||||||||||||||
Interest on Federal funds purchased and securities sold under agreements to repurchase | 229 | 248 | (19 | ) | (7.7 | )% | 235 | 231 | 218 | 11 | 5.0 | % | ||||||||||||||||||||||
Interest on other short-term funding | 186 | 83 | 103 | 124.1 | % | 115 | 81 | 156 | 30 | 19.2 | % | |||||||||||||||||||||||
Interest on long-term funding | 10,692 | 10,645 | 47 | 0.4 | % | 10,642 | 10,872 | 8,644 | 2,048 | 23.7 | % | |||||||||||||||||||||||
Total interest expense | 19,951 | 19,497 | 454 | 2.3 | % | 19,133 | 18,803 | 16,337 | 3,614 | 22.1 | % | |||||||||||||||||||||||
Net Interest Income | 171,468 | 170,509 | 959 | 0.6 | % | 166,488 | 167,813 | 174,661 | (3,193 | ) | (1.8 | )% | ||||||||||||||||||||||
Provision for credit losses | 20,000 | 8,000 | 12,000 | 150.0 | % | 5,000 | 4,500 | 5,000 | 15,000 | 300.0 | % | |||||||||||||||||||||||
Net interest income after provision for credit losses | 151,468 | 162,509 | (11,041 | ) | (6.8 | )% | 161,488 | 163,313 | 169,661 | (18,193 | ) | (10.7 | )% | |||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||||||||||
Trust service fees | 11,965 | 12,273 | (308 | ) | (2.5 | )% | 12,515 | 12,087 | 12,457 | (492 | ) | (3.9 | )% | |||||||||||||||||||||
Service charges on deposit accounts | 16,577 | 17,385 | (808 | ) | (4.6 | )% | 15,703 | 15,806 | 17,006 | (429 | ) | (2.5 | )% | |||||||||||||||||||||
Card-based and other nondeposit fees | 12,694 | 12,618 | 76 | 0.6 | % | 13,597 | 12,416 | 12,019 | 675 | 5.6 | % | |||||||||||||||||||||||
Insurance commissions | 17,997 | 17,561 | 436 | 2.5 | % | 20,077 | 19,728 | 10,593 | 7,404 | 69.9 | % | |||||||||||||||||||||||
Brokerage and annuity commissions | 3,694 | 3,809 | (115 | ) | (3.0 | )% | 4,192 | 3,683 | 3,496 | 198 | 5.7 | % | ||||||||||||||||||||||
Total core fee-based revenue | 62,927 | 63,646 | (719 | ) | (1.1 | )% | 66,084 | 63,720 | 55,571 | 7,356 | 13.2 | % | ||||||||||||||||||||||
Mortgage banking, net | 8,271 | 6,643 | 1,628 | 24.5 | % | 9,941 | 7,408 | 2,928 | 5,343 | 182.5 | % | |||||||||||||||||||||||
Capital market fees, net | 3,423 | 2,170 | 1,253 | 57.7 | % | 2,692 | 2,467 | 2,613 | 810 | 31.0 | % | |||||||||||||||||||||||
Bank owned life insurance income | 2,092 | 2,448 | (356 | ) | (14.5 | )% | 2,381 | 2,875 | 2,739 | (647 | ) | (23.6 | )% | |||||||||||||||||||||
Asset gains (losses), net | (1,492 | ) | 95 | (1,587 | ) | N/M | 1,893 | 1,096 | 3,727 | (5,219 | ) | (140.0 | )% | |||||||||||||||||||||
Investment securities gains, net | 4,095 | 2,796 | 1,299 | 46.5 | % | 1,242 | — | 25 | 4,070 | N/M | ||||||||||||||||||||||||
Other | 2,580 | 2,118 | 462 | 21.8 | % | 2,288 | 2,510 | 2,040 | 540 | 26.5 | % | |||||||||||||||||||||||
Total noninterest income | 81,896 | 79,916 | 1,980 | 2.5 | % | 86,521 | 80,076 | 69,643 | 12,253 | 17.6 | % | |||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||
Personnel expense | 100,469 | 101,134 | (665 | ) | (0.7 | )% | 102,986 | 100,152 | 97,258 | 3,211 | 3.3 | % | ||||||||||||||||||||||
Occupancy | 14,718 | 14,187 | 531 | 3.7 | % | 14,308 | 17,683 | 14,589 | 129 | 0.9 | % | |||||||||||||||||||||||
Equipment | 5,695 | 6,003 | (308 | ) | (5.1 | )% | 5,739 | 5,772 | 6,148 | (453 | ) | (7.4 | )% | |||||||||||||||||||||
Technology | 13,953 | 14,748 | (795 | ) | (5.4 | )% | 16,354 | 15,558 | 14,581 | (628 | ) | (4.3 | )% | |||||||||||||||||||||
Business development and advertising | 7,652 | 5,964 | 1,688 | 28.3 | % | 6,829 | 5,327 | 8,538 | (886 | ) | (10.4 | )% | ||||||||||||||||||||||
Other intangible amortization | 520 | 885 | (365 | ) | (41.2 | )% | 888 | 801 | 775 | (255 | ) | (32.9 | )% | |||||||||||||||||||||
Loan expense | 4,120 | 3,305 | 815 | 24.7 | % | 3,681 | 2,996 | 3,646 | 474 | 13.0 | % | |||||||||||||||||||||||
Legal and professional fees | 3,963 | 4,207 | (244 | ) | (5.8 | )% | 4,344 | 4,538 | 4,257 | (294 | ) | (6.9 | )% | |||||||||||||||||||||
Foreclosure / OREO expense | 1,270 | 496 | 774 | 156.0 | % | 1,303 | 1,425 | 1,168 | 102 | 8.7 | % | |||||||||||||||||||||||
FDIC expense | 7,500 | 6,000 | 1,500 | 25.0 | % | 6,000 | 6,500 | 6,956 | 544 | 7.8 | % | |||||||||||||||||||||||
Other | 15,032 | 14,507 | 525 | 3.6 | % | 14,384 | 13,503 | 13,889 | 1,143 | 8.2 | % | |||||||||||||||||||||||
Total noninterest expense | 174,892 | 171,436 | 3,456 | 2.0 | % | 176,816 | 174,255 | 171,805 | 3,087 | 1.8 | % | |||||||||||||||||||||||
Income before income taxes | 58,472 | 70,989 | (12,517 | ) | (17.6 | )% | 71,193 | 69,134 | 67,499 | (9,027 | ) | (13.4 | )% | |||||||||||||||||||||
Income tax expense | 15,681 | 21,551 | (5,870 | ) | (27.2 | )% | 21,793 | 22,462 | 18,761 | (3,080 | ) | (16.4 | )% | |||||||||||||||||||||
Net income | 42,791 | 49,438 | (6,647 | ) | (13.4 | )% | 49,400 | 46,672 | 48,738 | (5,947 | ) | (12.2 | )% | |||||||||||||||||||||
Preferred stock dividends | 2,198 | 2,184 | 14 | 0.6 | % | 1,545 | 1,228 | 1,225 | 973 | 79.4 | % | |||||||||||||||||||||||
Net income available to common equity | $ | 40,593 | $ | 47,254 | $ | (6,661 | ) | (14.1 | )% | $ | 47,855 | $ | 45,444 | $ | 47,513 | $ | (6,920 | ) | (14.6 | )% | ||||||||||||||
Earnings Per Common Share: | ||||||||||||||||||||||||||||||||||
Basic | $ | 0.27 | $ | 0.31 | $ | (0.04 | ) | (12.9 | )% | $ | 0.32 | $ | 0.30 | $ | 0.31 | $ | (0.04 | ) | (12.9 | )% | ||||||||||||||
Diluted | $ | 0.27 | $ | 0.31 | $ | (0.04 | ) | (12.9 | )% | $ | 0.31 | $ | 0.30 | $ | 0.31 | $ | (0.04 | ) | (12.9 | )% | ||||||||||||||
Average Common Shares Outstanding: | ||||||||||||||||||||||||||||||||||
Basic | 148,834 | 148,614 | 220 | 0.1 | % | 149,903 | 150,070 | 151,931 | (3,097 | ) | (2.0 | )% | ||||||||||||||||||||||
Diluted | 150,163 | 149,799 | 364 | 0.2 | % | 151,108 | 151,164 | 153,083 | (2,920 | ) | (1.9 | )% | ||||||||||||||||||||||
N/M = Not meaningful | ||||||||||||||||||||||||||||||||||
Page 3
Associated Banc-Corp Selected Quarterly Information | ||||||||||||||||||||||
($ in millions, except per share, full time equivalent employee data and branch count) | YTD 2015 | YTD 2014 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q14 | |||||||||||||||
Per Common Share Data | ||||||||||||||||||||||
Dividends | $ | 0.41 | $ | 0.37 | $ | 0.11 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||
Market value: | ||||||||||||||||||||||
High | 20.84 | 19.37 | 20.61 | 20.55 | 20.84 | 19.07 | 19.37 | |||||||||||||||
Low | 16.62 | 15.58 | 17.98 | 17.17 | 18.50 | 16.62 | 16.75 | |||||||||||||||
Close | 18.75 | 18.63 | 18.75 | 17.97 | 20.27 | 18.60 | 18.63 | |||||||||||||||
Book value | 18.62 | 18.32 | 18.62 | 18.77 | 18.44 | 18.38 | 18.32 | |||||||||||||||
Tangible book value / share | $ | 12.10 | $ | 12.06 | $ | 12.10 | $ | 12.23 | $ | 11.90 | $ | 11.95 | $ | 12.06 | ||||||||
Performance Ratios (annualized) | ||||||||||||||||||||||
Return on average assets | 0.70 | % | 0.76 | % | 0.62 | % | 0.72 | % | 0.74 | % | 0.71 | % | 0.75 | % | ||||||||
Effective tax rate | 30.20 | % | 30.99 | % | 26.82 | % | 30.36 | % | 30.61 | % | 32.49 | % | 27.79 | % | ||||||||
Dividend payout ratio (1) | 34.17 | % | 31.62 | % | 40.74 | % | 32.26 | % | 31.25 | % | 33.33 | % | 32.26 | % | ||||||||
Selected Trend Information | ||||||||||||||||||||||
Average full time equivalent employees | 4,421 | 4,406 | 4,378 | 4,421 | 4,465 | 4,422 | 4,320 | |||||||||||||||
Branch count | 215 | 225 | 228 | 227 | 226 | |||||||||||||||||
Trust assets under management, at market value | $ | 7,729 | $ | 7,626 | $ | 8,068 | $ | 8,138 | $ | 7,993 | ||||||||||||
Mortgage loans originated for sale during period | $ | 317 | $ | 292 | $ | 351 | $ | 268 | $ | 292 | ||||||||||||
Mortgage portfolio serviced for others | $ | 7,915 | $ | 7,907 | $ | 7,898 | $ | 7,920 | $ | 7,999 | ||||||||||||
Mortgage servicing rights, net / portfolio serviced for others | 0.77 | % | 0.78% | 0.77% | 0.75 | % | 0.75 | % | ||||||||||||||
Selected Quarterly Ratios | ||||||||||||||||||||||
Loans / deposits | 89.08 | % | 90.11% | 94.99% | 90.57 | % | 93.77 | % | ||||||||||||||
Stockholders’ equity / assets | 10.60 | % | 10.75% | 10.68% | 10.65 | % | 10.44 | % | ||||||||||||||
Shares outstanding, end of period | 151,239 | 150,928 | 150,862 | 153,567 | 149,560 | |||||||||||||||||
(1) | Ratio is based upon basic earnings per common share. |
Page 4
Associated Banc-Corp Selected Asset Quality Information | ||||||||||||||||||||||||||
(in thousands) | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||
Beginning balance | $ | 262,536 | $ | 261,538 | 0.4 | % | $ | 265,268 | $ | 266,302 | $ | 266,262 | (1.4 | )% | ||||||||||||
Provision for loan losses | 19,500 | 9,000 | 116.7 | % | 5,000 | 4,500 | 4,500 | 333.3 | % | |||||||||||||||||
Charge offs | (12,741 | ) | (11,732 | ) | 8.6 | % | (14,537 | ) | (13,270 | ) | (8,778 | ) | 45.1 | % | ||||||||||||
Recoveries | 4,969 | 3,730 | 33.2 | % | 5,807 | 7,736 | 4,318 | 15.1 | % | |||||||||||||||||
Net charge offs | (7,772 | ) | (8,002 | ) | (2.9 | )% | (8,730 | ) | (5,534 | ) | (4,460 | ) | 74.3 | % | ||||||||||||
Ending balance | $ | 274,264 | $ | 262,536 | 4.5 | % | $ | 261,538 | $ | 265,268 | $ | 266,302 | 3.0 | % | ||||||||||||
Allowance for Unfunded Commitments | ||||||||||||||||||||||||||
Beginning balance | $ | 23,900 | $ | 24,900 | (4.0 | )% | $ | 24,900 | $ | 24,900 | $ | 24,400 | (2.0 | )% | ||||||||||||
Provision for unfunded commitments | 500 | (1,000 | ) | (150.0 | )% | — | — | 500 | — | % | ||||||||||||||||
Ending balance | $ | 24,400 | $ | 23,900 | 2.1 | % | $ | 24,900 | $ | 24,900 | $ | 24,900 | (2.0 | )% | ||||||||||||
Allowance for credit losses | $ | 298,664 | $ | 286,436 | 4.3 | % | $ | 286,438 | $ | 290,168 | $ | 291,202 | 2.6 | % | ||||||||||||
Net Charge Offs | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Commercial and industrial | $ | 4,612 | $ | 4,709 | (2.1 | )% | $ | 3,921 | $ | 4,650 | $ | 1,323 | 248.6 | % | ||||||||||||
Commercial real estate—owner occupied | 291 | (504 | ) | (157.7 | )% | 1,198 | 739 | 134 | 117.2 | % | ||||||||||||||||
Lease financing | (26 | ) | — | N/M | — | — | 9 | (388.9 | )% | |||||||||||||||||
Commercial and business lending | 4,877 | 4,205 | 16.0 | % | 5,119 | 5,389 | 1,466 | 232.7 | % | |||||||||||||||||
Commercial real estate—investor | 665 | 496 | 34.1 | % | 1,856 | (2,529 | ) | (132 | ) | N/M | ||||||||||||||||
Real estate construction | (140 | ) | 38 | (468.4 | )% | (673 | ) | (743 | ) | (116 | ) | 20.7 | % | |||||||||||||
Commercial real estate lending | 525 | 534 | (1.7 | )% | 1,183 | (3,272 | ) | (248 | ) | (311.7 | )% | |||||||||||||||
Total commercial | 5,402 | 4,739 | 14.0 | % | 6,302 | 2,117 | 1,218 | 343.5 | % | |||||||||||||||||
Home equity revolving lines of credit | 294 | 533 | (44.8 | )% | 246 | 1,220 | 1,094 | (73.1 | )% | |||||||||||||||||
Home equity loans junior liens | 623 | 358 | 74.0 | % | 118 | 423 | 457 | 36.3 | % | |||||||||||||||||
Home equity | 917 | 891 | 2.9 | % | 364 | 1,643 | 1,551 | (40.9 | )% | |||||||||||||||||
Installment and credit cards | 739 | 810 | (8.8 | )% | 786 | 769 | 990 | (25.4 | )% | |||||||||||||||||
Residential mortgage | 714 | 1,562 | (54.3 | )% | 1,278 | 1,005 | 701 | 1.9 | % | |||||||||||||||||
Total consumer | 2,370 | 3,263 | (27.4 | )% | 2,428 | 3,417 | 3,242 | (26.9 | )% | |||||||||||||||||
Total net charge offs | $ | 7,772 | $ | 8,002 | (2.9 | )% | $ | 8,730 | $ | 5,534 | $ | 4,460 | 74.3 | % | ||||||||||||
Net Charge Offs to Average Loans (in basis points) * | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||||||||||||||
Commercial and industrial | 31 | 31 | 26 | 32 | 9 | |||||||||||||||||||||
Commercial real estate—owner occupied | 12 | (21 | ) | 48 | 30 | 5 | ||||||||||||||||||||
Lease financing | (24 | ) | - | - | — | 7 | ||||||||||||||||||||
Commercial and business lending | 28 | 24 | 29 | 31 | 9 | |||||||||||||||||||||
Commercial real estate—investor | 8 | 6 | 24 | (33 | ) | (2 | ) | |||||||||||||||||||
Real estate construction | (5 | ) | 1 | (26 | ) | (30 | ) | (5 | ) | |||||||||||||||||
Commercial real estate lending | 5 | 5 | 11 | (32 | ) | (2 | ) | |||||||||||||||||||
Total commercial | 19 | 17 | 22 | 8 | 4 | |||||||||||||||||||||
Home equity revolving lines of credit | 13 | 24 | 11 | 56 | 49 | |||||||||||||||||||||
Home equity loans junior liens | 195 | 104 | 32 | 108 | 107 | |||||||||||||||||||||
Home equity | 36 | 35 | 14 | 64 | 58 | |||||||||||||||||||||
Installment and credit cards | 69 | 75 | 73 | 70 | 86 | |||||||||||||||||||||
Residential mortgage | 5 | 11 | 9 | 8 | 5 | |||||||||||||||||||||
Total consumer | 13 | 18 | 14 | 21 | 19 | |||||||||||||||||||||
Total net charge offs | 17 | 17 | 19 | 13 | 10 | |||||||||||||||||||||
Credit Quality | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Nonaccrual loans | $ | 178,258 | $ | 147,454 | 20.9 | % | $ | 160,361 | $ | 174,346 | $ | 177,413 | 0.5 | % | ||||||||||||
Other real estate owned (OREO) | 14,569 | 13,740 | 6.0 | % | 13,557 | 14,926 | 16,732 | (12.9 | )% | |||||||||||||||||
Total nonperforming assets | $ | 192,827 | $ | 161,194 | 19.6 | % | $ | 173,918 | $ | 189,272 | $ | 194,145 | (0.7 | )% | ||||||||||||
Loans 90 or more days past due and still accruing | $ | 1,648 | $ | 1,484 | 11.1 | % | $ | 1,662 | $ | 1,715 | $ | 1,623 | 1.5 | % | ||||||||||||
Allowance for loan losses / loans | 1.47 | % | 1.42 | % | 1.43 | % | 1.48 | % | 1.51 | % | ||||||||||||||||
Allowance for loan losses / nonaccrual loans | 153.86 | 178.05 | 163.09 | 152.15 | 150.10 | |||||||||||||||||||||
Nonaccrual loans / total loans | 0.95 | 0.80 | 0.88 | 0.97 | 1.01 | |||||||||||||||||||||
Nonperforming assets / total loans plus OREO | 1.03 | 0.87 | 0.95 | 1.05 | 1.10 | |||||||||||||||||||||
Nonperforming assets / total assets | 0.70 | 0.59 | 0.64 | 0.70 | 0.72 | |||||||||||||||||||||
Net charge offs / average loans * | 0.17 | 0.17 | 0.19 | 0.13 | 0.10 | |||||||||||||||||||||
Year-to-date net charge offs / average loans * | 0.16 | 0.16 | 0.16 | 0.13 | 0.09 | |||||||||||||||||||||
* Annualized | ||||||||||||||||||||||||||
N/M = Not meaningful | ||||||||||||||||||||||||||
Page 5
Associated Banc-Corp Selected Asset Quality Information (continued) | ||||||||||||||||||||||||||
(in thousands) | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Nonaccrual loans by type: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 91,941 | $ | 58,421 | 57.4 | % | $ | 64,738 | $ | 61,620 | $ | 49,663 | 85.1 | % | ||||||||||||
Commercial real estate—owner occupied | 8,049 | 13,368 | (39.8 | )% | 18,821 | 21,861 | 25,825 | (68.8 | )% | |||||||||||||||||
Lease financing | 1,634 | 1,763 | (7.3 | )% | 1,656 | 1,720 | 1,801 | (9.3 | )% | |||||||||||||||||
Commercial and business lending | 101,624 | 73,552 | 38.2 | % | 85,215 | 85,201 | 77,289 | 31.5 | % | |||||||||||||||||
Commercial real estate—investor | 8,643 | 6,921 | 24.9 | % | 6,090 | 13,742 | 22,685 | (61.9 | )% | |||||||||||||||||
Real estate construction | 940 | 997 | (5.7 | )% | 2,906 | 5,423 | 5,399 | (82.6 | )% | |||||||||||||||||
Commercial real estate lending | 9,583 | 7,918 | 21.0 | % | 8,996 | 19,165 | 28,084 | (65.9 | )% | |||||||||||||||||
Total commercial | 111,207 | 81,470 | 36.5 | % | 94,211 | 104,366 | 105,373 | 5.5 | % | |||||||||||||||||
Home equity revolving lines of credit | 9,917 | 8,060 | 23.0 | % | 8,420 | 9,171 | 9,853 | 0.6 | % | |||||||||||||||||
Home equity loans junior liens | 5,327 | 5,581 | (4.6 | )% | 5,356 | 6,145 | 6,598 | (19.3 | )% | |||||||||||||||||
Home equity | 15,244 | 13,641 | 11.8 | % | 13,776 | 15,316 | 16,451 | (7.3 | )% | |||||||||||||||||
Installment and credit cards | 325 | 386 | (15.8 | )% | 454 | 515 | 613 | (47.0 | )% | |||||||||||||||||
Residential mortgage | 51,482 | 51,957 | (0.9 | )% | 51,920 | 54,149 | 54,976 | (6.4 | )% | |||||||||||||||||
Total consumer | 67,051 | 65,984 | 1.6 | % | 66,150 | 69,980 | 72,040 | (6.9 | )% | |||||||||||||||||
Total nonaccrual loans | $ | 178,258 | $ | 147,454 | 20.9 | % | $ | 160,361 | $ | 174,346 | $ | 177,413 | 0.5 | % | ||||||||||||
Restructured loans (accruing) | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Commercial and industrial | $ | 29,293 | $ | 28,598 | 2.4 | % | $ | 32,063 | $ | 26,466 | $ | 33,892 | (13.6 | )% | ||||||||||||
Commercial real estate—owner occupied | 7,877 | 7,343 | 7.3 | % | 5,433 | 9,780 | 10,454 | (24.7 | )% | |||||||||||||||||
Commercial and business lending | 37,170 | 35,941 | 3.4 | % | 37,496 | 36,246 | 44,346 | (16.2 | )% | |||||||||||||||||
Commercial real estate—investor | 21,915 | 18,580 | 17.9 | % | 22,009 | 22,775 | 23,127 | (5.2 | )% | |||||||||||||||||
Real estate construction | 510 | 485 | 5.2 | % | 714 | 717 | 727 | (29.8 | )% | |||||||||||||||||
Commercial real estate lending | 22,425 | 19,065 | 17.6 | % | 22,723 | 23,492 | 23,854 | (6.0 | )% | |||||||||||||||||
Total commercial | 59,595 | 55,006 | 8.3 | % | 60,219 | 59,738 | 68,200 | (12.6 | )% | |||||||||||||||||
Home equity revolving lines of credit | 1,332 | 1,121 | 18.8 | % | 1,222 | 1,251 | 1,508 | (11.7 | )% | |||||||||||||||||
Home equity loans junior liens | 5,737 | 5,824 | (1.5 | )% | 6,610 | 6,642 | 6,701 | (14.4 | )% | |||||||||||||||||
Home equity | 7,069 | 6,945 | 1.8 | % | 7,832 | 7,893 | 8,209 | (13.9 | )% | |||||||||||||||||
Installment and credit cards | 829 | 804 | 3.1 | % | 796 | 891 | 974 | (14.9 | )% | |||||||||||||||||
Residential mortgage | 19,870 | 20,054 | (0.9 | )% | 21,373 | 20,295 | 20,833 | (4.6 | )% | |||||||||||||||||
Total consumer | 27,768 | 27,803 | (0.1 | )% | 30,001 | 29,079 | 30,016 | (7.5 | )% | |||||||||||||||||
Total restructured loans (accruing) | $ | 87,363 | $ | 82,809 | 5.5 | % | $ | 90,220 | $ | 88,817 | $ | 98,216 | (11.1 | )% | ||||||||||||
Restructured loans in nonaccrual loans (not included above) | $ | 37,684 | $ | 36,583 | 3.0 | % | $ | 43,699 | $ | 53,553 | $ | 57,656 | (34.6 | )% | ||||||||||||
Loans Past Due 30-89 Days | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Commercial and industrial | $ | 1,011 | $ | 2,921 | (65.4 | )% | $ | 6,357 | $ | 1,717 | $ | 14,747 | (93.1 | )% | ||||||||||||
Commercial real estate—owner occupied | 7,142 | 2,018 | 253.9 | % | 1,090 | 1,849 | 10,628 | (32.8 | )% | |||||||||||||||||
Lease financing | — | 375 | (100.0 | )% | — | — | — | N/M | ||||||||||||||||||
Commercial and business lending | 8,153 | 5,314 | 53.4 | % | 7,447 | 3,566 | 25,375 | (67.9 | )% | |||||||||||||||||
Commercial real estate—investor | 291 | 1,218 | (76.1 | )% | 19,843 | 2,215 | 1,208 | (75.9 | )% | |||||||||||||||||
Real estate construction | 296 | 373 | (20.6 | )% | 312 | 317 | 984 | (69.9 | )% | |||||||||||||||||
Commercial real estate lending | 587 | 1,591 | (63.1 | )% | 20,155 | 2,532 | 2,192 | (73.2 | )% | |||||||||||||||||
Total commercial | 8,740 | 6,905 | 26.6 | % | 27,602 | 6,098 | 27,567 | (68.3 | )% | |||||||||||||||||
Home equity revolving lines of credit | 5,559 | 6,142 | (9.5 | )% | 5,157 | 7,150 | 6,725 | (17.3 | )% | |||||||||||||||||
Home equity loans junior liens | 2,360 | 2,423 | (2.6 | )% | 1,894 | 1,905 | 2,058 | 14.7 | % | |||||||||||||||||
Home equity | 7,919 | 8,565 | (7.5 | )% | 7,051 | 9,055 | 8,783 | (9.8 | )% | |||||||||||||||||
Installment and credit cards | 1,870 | 1,723 | 8.5 | % | 1,655 | 1,818 | 1,932 | (3.2 | )% | |||||||||||||||||
Residential mortgage | 4,930 | 4,811 | 2.5 | % | 6,602 | 4,356 | 4,846 | 1.7 | % | |||||||||||||||||
Total consumer | 14,719 | 15,099 | (2.5 | )% | 15,308 | 15,229 | 15,561 | (5.4 | )% | |||||||||||||||||
Total loans past due 30-89 days | $ | 23,459 | $ | 22,004 | 6.6 | % | $ | 42,910 | $ | 21,327 | $ | 43,128 | (45.6 | )% | ||||||||||||
Potential Problem Loans | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Commercial and industrial | $ | 230,680 | $ | 191,941 | 20.2 | % | $ | 125,643 | $ | 138,403 | $ | 108,522 | 112.6 | % | ||||||||||||
Commercial real estate—owner occupied | 35,706 | 41,466 | (13.9 | )% | 41,997 | 43,114 | 48,695 | (26.7 | )% | |||||||||||||||||
Lease financing | 2,450 | 233 | N/M | 1,385 | 2,009 | 2,709 | (9.6 | )% | ||||||||||||||||||
Commercial and business lending | 268,836 | 233,640 | 15.1 | % | 169,025 | 183,526 | 159,926 | 68.1 | % | |||||||||||||||||
Commercial real estate—investor | 25,944 | 23,633 | 9.8 | % | 23,543 | 26,026 | 24,043 | 7.9 | % | |||||||||||||||||
Real estate construction | 3,919 | 2,354 | 66.5 | % | 1,327 | 1,487 | 1,776 | 120.7 | % | |||||||||||||||||
Commercial real estate lending | 29,863 | 25,987 | 14.9 | % | 24,870 | 27,513 | 25,819 | 15.7 | % | |||||||||||||||||
Total commercial | 298,699 | 259,627 | 15.0 | % | 193,895 | 211,039 | 185,745 | 60.8 | % | |||||||||||||||||
Home equity revolving lines of credit | 48 | 141 | (66.0 | )% | 202 | 247 | 204 | (76.5 | )% | |||||||||||||||||
Home equity loans junior liens | 174 | 86 | 102.3 | % | 230 | 711 | 676 | (74.3 | )% | |||||||||||||||||
Home equity | 222 | 227 | (2.2 | )% | 432 | 958 | 880 | (74.8 | )% | |||||||||||||||||
Installment and credit cards | — | — | N/M | — | — | 2 | (100.0 | )% | ||||||||||||||||||
Residential mortgage | 2,796 | 3,966 | (29.5 | )% | 5,341 | 6,621 | 3,781 | (26.1 | )% | |||||||||||||||||
Total consumer | 3,018 | 4,193 | (28.0 | )% | 5,773 | 7,579 | 4,663 | (35.3 | )% | |||||||||||||||||
Total potential problem loans | $ | 301,717 | $ | 263,820 | 14.4 | % | $ | 199,668 | $ | 218,618 | $ | 190,408 | 58.5 | % | ||||||||||||
N/M = Not meaningful | ||||||||||||||||||||||||||
Page 6
Associated Banc-Corp Net Interest Income Analysis—Taxable Equivalent Basis — Sequential Quarter | ||||||||||||||||||||||
Three months ended December 31, 2015 | Three months ended September 30, 2015 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest Income /Expense | Average Yield /Rate | Average Balance | Interest Income /Expense | Average Yield /Rate | ||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Loans: (1) (2) (3) | ||||||||||||||||||||||
Commercial and business lending | $ | 6,892,162 | $ | 55,451 | 3.19 | % | $ | 7,089,664 | $ | 55,944 | 3.13 | % | ||||||||||
Commercial real estate lending | 4,373,460 | 37,587 | 3.41 | % | 4,260,329 | 36,694 | 3.42 | % | ||||||||||||||
Total commercial | 11,265,622 | 93,038 | 3.28 | % | 11,349,993 | 92,638 | 3.24 | % | ||||||||||||||
Residential mortgage | 5,845,557 | 47,305 | 3.24 | % | 5,658,253 | 47,004 | 3.32 | % | ||||||||||||||
Retail | 1,431,509 | 16,673 | 4.65 | % | 1,444,503 | 16,913 | 4.67 | % | ||||||||||||||
Total loans | 18,542,688 | 157,016 | 3.37 | % | 18,452,749 | 156,555 | 3.38 | % | ||||||||||||||
Investment securities | ||||||||||||||||||||||
Taxable | 5,205,033 | 26,395 | 2.03 | % | 4,968,609 | 24,937 | 2.01 | % | ||||||||||||||
Tax-exempt (1) | 1,016,329 | 11,909 | 4.69 | % | 997,489 | 12,112 | 4.86 | % | ||||||||||||||
Other short-term investments | 259,053 | 1,639 | 2.53 | % | 415,496 | 1,489 | 1.43 | % | ||||||||||||||
Investments and other | 6,480,415 | 39,943 | 2.47 | % | 6,381,594 | 38,538 | 2.42 | % | ||||||||||||||
Total earning assets | 25,023,103 | $ | 196,959 | 3.14 | % | 24,834,343 | $ | 195,093 | 3.13 | % | ||||||||||||
Other assets, net | 2,437,653 | 2,445,733 | ||||||||||||||||||||
Total assets | $ | 27,460,756 | $ | 27,280,076 | ||||||||||||||||||
Liabilities and stockholder's equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Savings deposits | $ | 1,358,141 | $ | 249 | 0.07 | % | $ | 1,357,677 | $ | 254 | 0.07 | % | ||||||||||
Interest-bearing demand deposits | 3,150,628 | 1,217 | 0.15 | % | 3,199,391 | 962 | 0.12 | % | ||||||||||||||
Money market deposits | 9,534,551 | 4,351 | 0.18 | % | 9,538,030 | 4,350 | 0.18 | % | ||||||||||||||
Time deposits | 1,604,864 | 3,027 | 0.75 | % | 1,624,661 | 2,955 | 0.72 | % | ||||||||||||||
Total interest-bearing deposits | 15,648,184 | 8,844 | 0.22 | % | 15,719,759 | 8,521 | 0.22 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 605,026 | 229 | 0.15 | % | 649,891 | 248 | 0.15 | % | ||||||||||||||
Other short-term funding | 368,752 | 186 | 0.20 | % | 154,811 | 83 | 0.21 | % | ||||||||||||||
Total short-term funding | 973,778 | 415 | 0.17 | % | 804,702 | 331 | 0.16 | % | ||||||||||||||
Long-term funding | 2,679,472 | 10,692 | 1.60 | % | 3,024,774 | 10,645 | 1.41 | % | ||||||||||||||
Total short and long-term funding | 3,653,250 | 11,107 | 1.22 | % | 3,829,476 | 10,976 | 1.15 | % | ||||||||||||||
Total interest-bearing liabilities | 19,301,434 | $ | 19,951 | 0.41 | % | 19,549,235 | $ | 19,497 | 0.40 | % | ||||||||||||
Noninterest-bearing demand deposits | 4,967,719 | 4,573,840 | ||||||||||||||||||||
Other liabilities | 250,957 | 237,725 | ||||||||||||||||||||
Stockholders’ equity | 2,940,646 | 2,919,276 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,460,756 | $ | 27,280,076 | ||||||||||||||||||
Interest rate spread | 2.73 | % | 2.73 | % | ||||||||||||||||||
Net free funds | 0.09 | % | 0.09 | % | ||||||||||||||||||
Net interest income, tax-equivalent, and net interest margin | $ | 177,008 | 2.82 | % | $ | 175,596 | 2.82 | % | ||||||||||||||
Fully tax-equivalent adjustment | 5,540 | 5,087 | ||||||||||||||||||||
Net interest income | $ | 171,468 | $ | 170,509 | ||||||||||||||||||
Net Interest Income Analysis—Taxable Equivalent Basis — Comparable Quarter | ||||||||||||||||||||||
Three months ended December 31, 2015 | Three months ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest Income /Expense | Average Yield /Rate | Average Balance | Interest Income /Expense | Average Yield /Rate | ||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Loans: (1) (2) (3) | ||||||||||||||||||||||
Commercial and business lending | $ | 6,892,162 | $ | 55,451 | 3.19 | % | $ | 6,720,893 | $ | 59,197 | 3.50 | % | ||||||||||
Commercial real estate lending | 4,373,460 | 37,587 | 3.41 | % | 4,066,143 | 37,122 | 3.62 | % | ||||||||||||||
Total commercial | 11,265,622 | 93,038 | 3.28 | % | 10,787,036 | 96,319 | 3.54 | % | ||||||||||||||
Residential mortgage | 5,845,557 | 47,305 | 3.24 | % | 5,091,794 | 43,370 | 3.40 | % | ||||||||||||||
Retail | 1,431,509 | 16,673 | 4.65 | % | 1,508,425 | 17,800 | 4.70 | % | ||||||||||||||
Total loans | 18,542,688 | 157,016 | 3.37 | % | 17,387,255 | 157,489 | 3.60 | % | ||||||||||||||
Investment securities | ||||||||||||||||||||||
Taxable | 5,205,033 | 26,395 | 2.03 | % | 4,780,268 | 25,061 | 2.10 | % | ||||||||||||||
Tax-exempt (1) | 1,016,329 | 11,909 | 4.69 | % | 917,330 | 11,597 | 5.06 | % | ||||||||||||||
Other short-term investments | 259,053 | 1,639 | 2.53 | % | 407,644 | 1,821 | 1.78 | % | ||||||||||||||
Investments and other | 6,480,415 | 39,943 | 2.47 | % | 6,105,242 | 38,479 | 2.52 | % | ||||||||||||||
Total earning assets | 25,023,103 | $ | 196,959 | 3.14 | % | 23,492,497 | $ | 195,968 | 3.32 | % | ||||||||||||
Other assets, net | 2,437,653 | 2,388,268 | ||||||||||||||||||||
Total assets | $ | 27,460,756 | $ | 25,880,765 | ||||||||||||||||||
Liabilities and stockholder's equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Savings deposits | $ | 1,358,141 | $ | 249 | 0.07 | % | $ | 1,264,195 | $ | 253 | 0.08 | % | ||||||||||
Interest-bearing demand deposits | 3,150,628 | 1,217 | 0.15 | % | 3,142,537 | 1,220 | 0.15 | % | ||||||||||||||
Money market deposits | 9,534,551 | 4,351 | 0.18 | % | 8,209,091 | 3,547 | 0.17 | % | ||||||||||||||
Time deposits | 1,604,864 | 3,027 | 0.75 | % | 1,549,565 | 2,299 | 0.59 | % | ||||||||||||||
Total interest-bearing deposits | 15,648,184 | 8,844 | 0.22 | % | 14,165,388 | 7,319 | 0.20 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 605,026 | 229 | 0.15 | % | 600,969 | 218 | 0.14 | % | ||||||||||||||
Other short-term funding | 368,752 | 186 | 0.20 | % | 464,866 | 156 | 0.13 | % | ||||||||||||||
Total short-term funding | 973,778 | 415 | 0.17 | % | 1,065,835 | 374 | 0.14 | % | ||||||||||||||
Long-term funding | 2,679,472 | 10,692 | 1.60 | % | 3,221,574 | 8,644 | 1.07 | % | ||||||||||||||
Total short and long-term funding | 3,653,250 | 11,107 | 1.22 | % | 4,287,409 | 9,018 | 0.84 | % | ||||||||||||||
Total interest-bearing liabilities | 19,301,434 | $ | 19,951 | 0.41 | % | 18,452,797 | $ | 16,337 | 0.35 | % | ||||||||||||
Noninterest-bearing demand deposits | 4,967,719 | 4,367,031 | ||||||||||||||||||||
Other liabilities | 250,957 | 228,600 | ||||||||||||||||||||
Stockholders’ equity | 2,940,646 | 2,832,337 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,460,756 | $ | 25,880,765 | ||||||||||||||||||
Interest rate spread | 2.73 | % | 2.97 | % | ||||||||||||||||||
Net free funds | 0.09 | % | 0.07 | % | ||||||||||||||||||
Net interest income, tax-equivalent, and net interest margin | $ | 177,008 | 2.82 | % | $ | 179,631 | 3.04 | % | ||||||||||||||
Fully tax-equivalent adjustment | 5,540 | 4,970 | ||||||||||||||||||||
Net interest income | $ | 171,468 | $ | 174,661 | ||||||||||||||||||
Page 7
Associated Banc-Corp Net Interest Income Analysis—Taxable Equivalent Basis — Year Over Year | ||||||||||||||||||||||
Year ended December 31, 2015 | Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest Income /Expense | Average Yield /Rate | Average Balance | Interest Income /Expense | Average Yield /Rate | ||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Loans: (1) (2) (3) | ||||||||||||||||||||||
Commercial and business lending | $ | 7,035,449 | $ | 223,639 | 3.18 | % | $ | 6,495,338 | $ | 219,386 | 3.38 | % | ||||||||||
Commercial real estate lending | 4,222,218 | 146,372 | 3.47 | % | 3,990,675 | 146,802 | 3.68 | % | ||||||||||||||
Total commercial | 11,257,667 | 370,011 | 3.29 | % | 10,486,013 | 366,188 | 3.49 | % | ||||||||||||||
Residential mortgage | 5,538,690 | 182,228 | 3.29 | % | 4,864,054 | 168,830 | 3.47 | % | ||||||||||||||
Retail | 1,455,907 | 67,524 | 4.64 | % | 1,488,927 | 67,382 | 4.53 | % | ||||||||||||||
Total loans | 18,252,264 | 619,763 | 3.40 | % | 16,838,994 | 602,400 | 3.58 | % | ||||||||||||||
Investment securities | ||||||||||||||||||||||
Taxable | 4,936,065 | 100,292 | 2.03 | % | 4,726,511 | 102,464 | 2.17 | % | ||||||||||||||
Tax-exempt (1) | 976,784 | 47,663 | 4.88 | % | 867,721 | 44,467 | 5.12 | % | ||||||||||||||
Other short-term investments | 405,974 | 6,591 | 1.62 | % | 326,902 | 6,635 | 2.03 | % | ||||||||||||||
Investments and other | 6,318,823 | 154,546 | 2.45 | % | 5,921,134 | 153,566 | 2.59 | % | ||||||||||||||
Total earning assets | 24,571,087 | $ | 774,309 | 3.15 | % | 22,760,128 | $ | 755,966 | 3.32 | % | ||||||||||||
Other assets, net | 2,451,923 | 2,351,469 | ||||||||||||||||||||
Total assets | $ | 27,023,010 | $ | 25,111,597 | ||||||||||||||||||
Liabilities and stockholder's equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Savings deposits | $ | 1,336,755 | $ | 1,000 | 0.07 | % | $ | 1,249,452 | $ | 968 | 0.08 | % | ||||||||||
Interest-bearing demand deposits | 3,201,085 | 4,266 | 0.13 | % | 2,983,747 | 4,124 | 0.14 | % | ||||||||||||||
Money market deposits | 9,210,179 | 16,574 | 0.18 | % | 7,614,042 | 12,452 | 0.16 | % | ||||||||||||||
Time deposits | 1,613,547 | 11,285 | 0.70 | % | 1,587,641 | 8,750 | 0.55 | % | ||||||||||||||
Total interest-bearing deposits | 15,361,566 | 33,125 | 0.22 | % | 13,434,882 | 26,294 | 0.20 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 625,736 | 943 | 0.15 | % | 795,257 | 1,219 | 0.15 | % | ||||||||||||||
Other short-term funding | 220,321 | 465 | 0.21 | % | 573,460 | 785 | 0.14 | % | ||||||||||||||
Total short-term funding | 846,057 | 1,408 | 0.17 | % | 1,368,717 | 2,004 | 0.15 | % | ||||||||||||||
Long-term funding | 3,127,018 | 42,851 | 1.37 | % | 3,022,787 | 27,480 | 0.91 | % | ||||||||||||||
Total short and long-term funding | 3,973,075 | 44,259 | 1.11 | % | 4,391,504 | 29,484 | 0.67 | % | ||||||||||||||
Total interest-bearing liabilities | 19,334,641 | $ | 77,384 | 0.40 | % | 17,826,386 | $ | 55,778 | 0.31 | % | ||||||||||||
Noninterest-bearing demand deposits | 4,541,521 | 4,212,202 | ||||||||||||||||||||
Other liabilities | 251,690 | 201,077 | ||||||||||||||||||||
Stockholders’ equity | 2,895,158 | 2,871,932 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,023,010 | $ | 25,111,597 | ||||||||||||||||||
Interest rate spread | 2.75 | % | 3.01 | % | ||||||||||||||||||
Net free funds | 0.09 | % | 0.07 | % | ||||||||||||||||||
Net interest income, tax-equivalent, and net interest margin | $ | 696,925 | 2.84 | % | $ | 700,188 | 3.08 | % | ||||||||||||||
Fully tax-equivalent adjustment | 20,647 | 19,221 | ||||||||||||||||||||
Net interest income | $ | 676,278 | $ | 680,967 | ||||||||||||||||||
(1) | The yield on tax exempt loans and securities is computed on a fully tax-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. |
Page 8
Associated Banc-Corp Financial Summary and Comparison (in thousands) | ||||||||||||||||||||||||||
Period End Loan Composition | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Commercial and industrial | $ | 6,147,440 | $ | 6,085,473 | 1.0 | % | $ | 6,208,192 | $ | 6,140,420 | $ | 5,905,902 | 4.1 | % | ||||||||||||
Commercial real estate—owner occupied | 918,212 | 966,689 | (5.0 | )% | 978,183 | 1,003,885 | 1,007,937 | (8.9 | )% | |||||||||||||||||
Lease financing | 43,243 | 42,607 | 1.5 | % | 46,900 | 49,496 | 51,529 | (16.1 | )% | |||||||||||||||||
Commercial and business lending | 7,108,895 | 7,094,769 | 0.2 | % | 7,233,275 | 7,193,801 | 6,965,368 | 2.1 | % | |||||||||||||||||
Commercial real estate—investor | 3,234,266 | 3,183,352 | 1.6 | % | 3,126,440 | 3,086,980 | 3,056,485 | 5.8 | % | |||||||||||||||||
Real estate construction | 1,162,145 | 1,124,280 | 3.4 | % | 1,092,308 | 1,019,571 | 1,008,956 | 15.2 | % | |||||||||||||||||
Commercial real estate lending | 4,396,411 | 4,307,632 | 2.1 | % | 4,218,748 | 4,106,551 | 4,065,441 | 8.1 | % | |||||||||||||||||
Total commercial | 11,505,306 | 11,402,401 | 0.9 | % | 11,452,023 | 11,300,352 | 11,030,809 | 4.3 | % | |||||||||||||||||
Home equity revolving lines of credit | 883,759 | 883,573 | — | % | 880,628 | 879,827 | 887,779 | (0.5 | )% | |||||||||||||||||
Home equity loans junior liens | 122,043 | 130,892 | (6.8 | )% | 141,344 | 154,120 | 164,148 | (25.7 | )% | |||||||||||||||||
Home equity | 1,005,802 | 1,014,465 | (0.9 | )% | 1,021,972 | 1,033,947 | 1,051,927 | (4.4 | )% | |||||||||||||||||
Installment and credit cards | 419,968 | 425,729 | (1.4 | )% | 430,823 | 436,492 | 454,219 | (7.5 | )% | |||||||||||||||||
Residential mortgage | 5,783,267 | 5,682,178 | 1.8 | % | 5,398,434 | 5,208,241 | 5,056,891 | 14.4 | % | |||||||||||||||||
Total consumer | 7,209,037 | 7,122,372 | 1.2 | % | 6,851,229 | 6,678,680 | 6,563,037 | 9.8 | % | |||||||||||||||||
Total loans | $ | 18,714,343 | $ | 18,524,773 | 1.0 | % | $ | 18,303,252 | $ | 17,979,032 | $ | 17,593,846 | 6.4 | % | ||||||||||||
Period End Deposit and Customer Funding Composition | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Noninterest-bearing demand | $ | 5,562,466 | $ | 4,657,261 | 19.4 | % | $ | 4,332,171 | $ | 4,570,872 | $ | 4,505,272 | 23.5 | % | ||||||||||||
Savings | 1,334,420 | 1,346,407 | (0.9 | )% | 1,359,478 | 1,337,643 | 1,235,277 | 8.0 | % | |||||||||||||||||
Interest-bearing demand | 3,445,000 | 3,416,429 | 0.8 | % | 3,576,311 | 3,525,870 | 3,126,854 | 10.2 | % | |||||||||||||||||
Money market | 9,102,977 | 9,516,503 | (4.3 | )% | 8,374,186 | 8,781,206 | 8,324,646 | 9.3 | % | |||||||||||||||||
Brokered CDs | 42,443 | 42,689 | (0.6 | )% | 39,760 | 40,699 | 42,556 | (0.3 | )% | |||||||||||||||||
Other time | 1,520,359 | 1,579,106 | (3.7 | )% | 1,587,657 | 1,595,302 | 1,528,899 | (0.6 | )% | |||||||||||||||||
Total deposits | 21,007,665 | 20,558,395 | 2.2 | % | 19,269,563 | 19,851,592 | 18,763,504 | 12.0 | % | |||||||||||||||||
Customer repo sweeps | 383,568 | 524,630 | (26.9 | )% | 433,044 | 528,572 | 384,221 | (0.2 | )% | |||||||||||||||||
Total deposits and customer funding | $ | 21,391,233 | $ | 21,083,025 | 1.5 | % | $ | 19,702,607 | $ | 20,380,164 | $ | 19,147,725 | 11.7 | % | ||||||||||||
Network transaction deposits included above in interest-bearing demand & money market | $ | 3,174,911 | $ | 3,207,867 | (1.0 | )% | $ | 2,920,939 | $ | 2,900,325 | $ | 2,852,943 | 11.3 | % | ||||||||||||
Brokered CDs | 42,443 | 42,689 | (0.6 | )% | 39,760 | 40,699 | 42,556 | (0.3 | )% | |||||||||||||||||
Total network and brokered funding | 3,217,354 | 3,250,556 | (1.0 | )% | 2,960,699 | 2,941,024 | 2,895,499 | 11.1 | % | |||||||||||||||||
Net customer deposits and funding (1) | $ | 18,173,879 | $ | 17,832,469 | 1.9 | % | $ | 16,741,908 | $ | 17,439,140 | $ | 16,252,226 | 11.8 | % | ||||||||||||
Quarter Average Loan Composition | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Commercial and industrial | $ | 5,905,034 | $ | 6,074,168 | (2.8 | )% | $ | 6,122,864 | $ | 5,944,152 | $ | 5,665,396 | 4.2 | % | ||||||||||||
Commercial real estate—owner occupied | 944,223 | 970,112 | (2.7 | )% | 995,981 | 998,293 | 1,003,179 | (5.9 | )% | |||||||||||||||||
Lease financing | 42,905 | 45,384 | (5.5 | )% | 48,470 | 50,724 | 52,318 | (18.0 | )% | |||||||||||||||||
Commercial and business lending | 6,892,162 | 7,089,664 | (2.8 | )% | 7,167,315 | 6,993,169 | 6,720,893 | 2.5 | % | |||||||||||||||||
Commercial real estate—investor | 3,266,008 | 3,134,454 | 4.2 | % | 3,110,637 | 3,106,965 | 3,062,427 | 6.6 | % | |||||||||||||||||
Real estate construction | 1,107,452 | 1,125,875 | (1.6 | )% | 1,038,318 | 995,768 | 1,003,716 | 10.3 | % | |||||||||||||||||
Commercial real estate lending | 4,373,460 | 4,260,329 | 2.7 | % | 4,148,955 | 4,102,733 | 4,066,143 | 7.6 | % | |||||||||||||||||
Total commercial | 11,265,622 | 11,349,993 | (0.7 | )% | 11,316,270 | 11,095,902 | 10,787,036 | 4.4 | % | |||||||||||||||||
Home equity revolving lines of credit | 882,599 | 880,660 | 0.2 | % | 881,036 | 882,869 | 883,580 | (0.1 | )% | |||||||||||||||||
Home equity loans junior liens | 126,658 | 136,254 | (7.0 | )% | 147,391 | 159,378 | 169,845 | (25.4 | )% | |||||||||||||||||
Home equity | 1,009,257 | 1,016,914 | (0.8 | )% | 1,028,427 | 1,042,247 | 1,053,425 | (4.2 | )% | |||||||||||||||||
Installment and credit cards | 422,252 | 427,589 | (1.2 | )% | 432,415 | 445,268 | 455,000 | (7.2 | )% | |||||||||||||||||
Residential mortgage | 5,845,557 | 5,658,253 | 3.3 | % | 5,411,193 | 5,231,698 | 5,091,794 | 14.8 | % | |||||||||||||||||
Total consumer | 7,277,066 | 7,102,756 | 2.5 | % | 6,872,035 | 6,719,213 | 6,600,219 | 10.3 | % | |||||||||||||||||
Total loans | $ | 18,542,688 | $ | 18,452,749 | 0.5 | % | $ | 18,188,305 | $ | 17,815,115 | $ | 17,387,255 | 6.6 | % | ||||||||||||
Quarter Average Deposit Composition | Dec 31, 2015 | Sep 30, 2015 | Seql Qtr % Change | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Comp Qtr % Change | |||||||||||||||||||
Noninterest-bearing demand | $ | 4,967,719 | $ | 4,573,840 | 8.6 | % | $ | 4,290,567 | $ | 4,326,557 | $ | 4,367,031 | 13.8 | % | ||||||||||||
Savings | 1,358,141 | 1,357,677 | — | % | 1,352,616 | 1,277,469 | 1,264,195 | 7.4 | % | |||||||||||||||||
Interest-bearing demand | 3,150,628 | 3,199,391 | (1.5 | )% | 3,251,196 | 3,203,727 | 3,142,537 | 0.3 | % | |||||||||||||||||
Money market | 9,534,551 | 9,538,030 | — | % | 9,101,589 | 8,653,260 | 8,209,091 | 16.1 | % | |||||||||||||||||
Time deposits | 1,604,864 | 1,624,661 | (1.2 | )% | 1,630,242 | 1,594,183 | 1,549,565 | 3.6 | % | |||||||||||||||||
Total deposits | $ | 20,615,903 | $ | 20,293,599 | 1.6 | % | $ | 19,626,210 | $ | 19,055,196 | $ | 18,532,419 | 11.2 | % | ||||||||||||
(1) | Total deposits and customer funding excluding total network and brokered funding. |
Page 9
Associated Banc-Corp Non-GAAP Financial Measures Reconciliation | ||||||||||||||||||||
($ in millions) | YTD 2015 | YTD 2014 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q14 | |||||||||||||
Common Equity Tier 1 Reconciliation (1) | ||||||||||||||||||||
Common equity | $ | 2,816 | $ | 2,832 | $ | 2,782 | $ | 2,823 | $ | 2,740 | ||||||||||
Goodwill and other intangible assets | (985 | ) | (986 | ) | (987 | ) | (987 | ) | (937 | ) | ||||||||||
Tangible common equity | 1,831 | 1,846 | 1,795 | 1,836 | 1,803 | |||||||||||||||
Accumulated other comprehensive income | 33 | (15 | ) | (2 | ) | (25 | ) | 5 | ||||||||||||
Deferred tax assets / deferred tax liabilities, net | 34 | 34 | 32 | 27 | — | |||||||||||||||
Common equity Tier 1 | $ | 1,898 | $ | 1,865 | $ | 1,825 | $ | 1,838 | $ | 1,808 | ||||||||||
Average Common Equity Tier 1 Reconciliation (1) | ||||||||||||||||||||
Common equity | $ | 2,819 | $ | 2,798 | $ | 2,794 | $ | 2,785 | $ | 2,772 | ||||||||||
Goodwill and other intangible assets | (985 | ) | (986 | ) | (987 | ) | (971 | ) | (937 | ) | ||||||||||
Tangible common equity | 1,834 | 1,812 | 1,807 | 1,814 | 1,835 | |||||||||||||||
Accumulated other comprehensive income | 4 | (7 | ) | (16 | ) | (18 | ) | (14 | ) | |||||||||||
Deferred tax assets / deferred tax liabilities, net | 34 | 32 | 29 | 8 | — | |||||||||||||||
Average common equity Tier 1 | $ | 1,872 | $ | 1,837 | $ | 1,820 | $ | 1,804 | $ | 1,821 | ||||||||||
Risk-based Capital (1) (2) | ||||||||||||||||||||
Risk-weighted assets | $ | 19,933 | $ | 19,866 | $ | 19,629 | $ | 19,565 | $ | 18,568 | ||||||||||
Common equity Tier 1 / risk-weighted assets | 9.52 | % | 9.39 | % | 9.30 | % | 9.39 | % | 9.74 | % | ||||||||||
Tier 1 leverage ratio | 7.60 | % | 7.53 | % | 7.53 | % | 7.39 | % | 7.48 | % | ||||||||||
Tier 1 risk-based capital ratio | 10.12 | % | 9.98 | % | 9.89 | % | 9.70 | % | 10.06 | % | ||||||||||
Total risk-based capital ratio | 12.62 | % | 12.49 | % | 12.41 | % | 12.21 | % | 12.66 | % | ||||||||||
Selected Equity and Performance Ratios (1) (3) | ||||||||||||||||||||
Tangible common equity / tangible assets | 6.85 | % | 6.97 | % | 6.85 | % | 7.04 | % | 6.97 | % | ||||||||||
Tangible equity / tangible assets | 7.30 | % | 7.43 | % | 7.32 | % | 7.27 | % | 7.20 | % | ||||||||||
Return on average tangible common equity | 9.97 | % | 9.91 | % | 8.78 | % | 10.35 | % | 10.62 | % | 10.16 | % | 10.27 | % | ||||||
Return on average common equity Tier 1 | 9.88 | % | 9.92 | % | 8.60 | % | 10.20 | % | 10.55 | % | 10.22 | % | 10.35 | % | ||||||
Efficiency Ratio Reconciliation (4) | ||||||||||||||||||||
Federal Reserve efficiency ratio | 69.93 | % | 70.28 | % | 70.36 | % | 68.83 | % | 70.23 | % | 70.30 | % | 70.54 | % | ||||||
Taxable equivalent adjustment | (1.42 | )% | (1.36 | )% | (1.53 | )% | (1.39 | )% | (1.34 | )% | (1.42 | )% | (1.41 | )% | ||||||
Other intangible amortization | (0.30 | )% | (0.39 | )% | (0.20 | )% | (0.35 | )% | (0.35 | )% | (0.32 | )% | (0.31 | )% | ||||||
Fully tax-equivalent efficiency ratio | 68.21 | % | 68.53 | % | 68.63 | % | 67.09 | % | 68.54 | % | 68.56 | % | 68.82 | % | ||||||
(1) | The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. Prior to 2015, the regulatory capital requirements effective for the Corporation followed the Capital Accord of the Basel Committee on Banking Supervision ("Basel I"). Beginning January 1, 2015, the regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. These regulatory capital measurements are used by management, regulators, investors, and analysts to assess, monitor and compare the quality and composition of our capital with the capital of other financial services companies. |
(2) | December 31, 2015 data is estimated. |
(3) | The ratios tangible common equity to tangible assets and tangible equity to 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. |
(4) | The efficiency ratio as defined by the Federal Reserve guidance is noninterest expense (which includes the provision for unfunded commitments) divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. The fully tax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net. Management believes the fully tax-equivalent efficiency ratio, which adjusts net interest income for the tax-favored status of certain loans and investment securities, to be the preferred industry measurement as it enhances the comparability of net interest income arising from taxable and tax-exempt sources. |
Page 10
