ASSOCIATED BANC-CORP GREEN BAY, Wis., Jan. 22, 2015 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) today reported net income to common shareholders of $186 million, or $1.16 per common share, for the year ended December 31, 2014. This compares to net income to common shareholders of $184 million, or $1.10 per common share, for the year ended December 31, 2013.
For the quarter ended December 31, 2014, the Company reported earnings per share of $0.31 per common share. This compares to $0.28 per common share, for the quarter ended December 31, 2013.
"Overall we are pleased with this year's financial results and accomplishments. We continued to grow our balance sheet, total revenues, and bottom line earnings. In addition, we have continued to make substantial investments in the bank which will position us for the future, while slightly reducing total expenses" said President and CEO Philip B. Flynn. "We remain focused on opportunistic ways to deploy capital while delivering increased value to our shareholders. We are also happy to kick off 2015 with last week's announcement regarding the acquisition of the insurance agency, Ahmann-Martin."
2014 HIGHLIGHTS
-- Average loans grew $1.2 billion, or 8% from a year ago to $16.8 billion
-- Average total commercial loan balances grew $1 billion, or 10% from
last year
-- Average deposits grew $209 million, or 1% from a year ago to $17.6
billion
-- Average checking balances grew $119 million, or 2% from last year
-- Net interest income of $681 million increased $35 million, or 5% from
last year
-- Noninterest expenses of $679 million were down slightly from 2013
-- During the year, the Company repurchased $259 million, or approximately
14.3 million shares, of common stock at an average cost of $18.12 per
share
-- Return on Tier 1 common equity for 2014 was 9.9%
-- 2014 fourth quarter return on Tier 1 common equity was 10.4%
-- Total dividends per common share of $0.37 in 2014 were up 12% from last
year
-- Capital ratios remain strong with a Tier 1 common equity ratio of 9.74%
at year end
FOURTH QUARTER AND 2014 FINANCIAL RESULTS
Loans
Average loans of $16.8 billion for 2014 were up $1.2 billion, or 8% from 2013. Total average commercial loans for 2014 grew $1 billion, or 10% from a year ago to $10.5 billion. Commercial and business lending average balances grew $686 million, or 12% from 2013. Commercial real estate lending average balances grew $285 million, or 8% from 2013. Residential mortgage average balances for 2014 grew $488 million, or 13% from a year ago to $4.2 billion. Offsetting part of the 2014 total loan growth was the continued run off in home equity balances, with an average balance decline of $276 million, or 14% from 2013.
Fourth quarter 2014 average loans increased $246 million, or 1% from the third quarter and have increased $1.6 billion, or 10% from the year ago quarter. Growth in residential mortgage and commercial loans was partially offset by declines in the home equity and installment loan portfolios.
For the period ended December 31, 2014, total loans of $17.6 billion were up $435 million, or 3% from the end of the prior quarter, and were up $1.7 billion, or 11% from December 31, 2013. Total commercial loans of $11 billion at December 31, 2014 were up $1.2 billion, or 12% from the prior year end.
Deposits
2014 average deposits of $17.6 billion were up $209 million, or 1% from 2013. Total average checking, savings, and money market balances growth of $471 million was partially offset by declines in time deposit balances of $262 million during the year.
Average deposits of $18.5 billion for the fourth quarter were up $659 million, or 4% compared to the third quarter and have increased $651 million, or 4%, from the year ago quarter. Money market average balances increased $488 million, or 6% from the third quarter and are up $460 million, or 6% from the year ago quarter. Fourth quarter average checking balances increased $173 million, or 2% from the third quarter and are up $304 million, or 4% from the year ago quarter.
For the period ended December 31, 2014, total deposits of $18.8 billion were up $562 million, or 3% from the end of the prior quarter, and were up $1.5 billion, or 9% from December 31, 2013. Money market balances of $8.3 billion at December 31, 2014 were up $1.4 billion, or 21% from the prior year end.
Net Interest Income and Net Interest Margin
Net interest income of $681 million for 2014 was up $35 million, or 5% from 2013. Fourth quarter net interest income of $175 million increased 1% from the prior quarter and was up $7 million, or 4% compared to the year ago quarter.
Net interest margin of 3.08% for 2014 declined 9 basis points from 2013. Fourth quarter net interest margin was 3.04%, a decrease of 2 basis points from the 3.06% reported in the third quarter and a decrease of 19 basis points from a year ago.
Fourth quarter asset yields of 3.32% were up 3 basis points from the prior quarter. Asset yield compression was more than offset by interest recoveries and prepayment fees of nearly $5 million. The net interest margin impact of this $5 million was approximately 8 basis points during the quarter.
Total interest-bearing funding costs of 0.35% were up 6 basis points from the third quarter. Long-term funding costs increased in the fourth quarter as a result of the $500 million debt issued in November. The net effect of this transaction decreased net interest margin by approximately 5 basis points for the quarter.
Noninterest Income and Expense
Noninterest income of $290 million for 2014 was down $23 million, or 7% compared to 2013. This decline was primarily attributed to net mortgage banking income, which was down $28 million, or 56% from 2013.
Fourth quarter noninterest income was $70 million, down $5 million, or 7% from the third quarter and down $6 million, or 8% from the year ago quarter. Mortgage banking income declined $4 million from the prior quarter and $5 million from the year ago quarter. Insurance commissions increased $3 million from the prior quarter, primarily related to the establishment of a $4 million reserve in the third quarter for remediation on legacy debt protection products. Fourth quarter asset gains declined $1 million from the prior quarter.
2014 total noninterest expense of $679 million was down slightly from 2013. Increases in technology, FDIC, and advertising expenses were more than offset by declines in personnel, occupancy, professional fees and foreclosure/OREO expenses.
Total noninterest expense for the fourth quarter of $172 million was flat compared to the third quarter and down $7 million from the year ago quarter.
Taxes
2014 income taxes of $86 million were up $6 million from 2013. The effective tax rate for 2014 was 31% compared to 30% last year.
Credit
Net charge offs of $4 million for the fourth quarter were up $2 million from the third quarter, but are down $1 million from the year ago quarter. Potential problem loans of $190 million declined $30 million, or 13% from the prior quarter. The fourth quarter provision for credit losses of $5 million was up $4 million from the prior quarter.
The Company's allowance for loan losses was $266 million, equal to 1.51% of loans and reflects a coverage ratio of 150% of nonaccrual loans at December 31, 2014.
Nonaccrual loans of $177 million were down 4% compared to the third quarter and were also down 4% from the year ago quarter. The ratio of nonaccrual loans to total loans was down from the previous quarter and stands at 1.01%.
Capital
During the fourth quarter, the Company repurchased $100 million of common stock in two separate accelerated share repurchase transactions.
The Company's capital position remains strong, with a Tier 1 common equity ratio of 9.74% at December 31, 2014. The Company's capital ratios continue to be in excess of the Basel III "well-capitalized" regulatory benchmarks on a fully phased in basis.
FOURTH QUARTER 2014 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 22, 2015. Interested parties can listen to the call live on the internet through the investor relations section of the company's website, https://www.associatedbank.com/investor or by dialing 877-407-8037. The slide presentation for the call will be available on the company's website just prior to the call. The number for international callers is 201-689-8037. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2014 earnings call.
An audio archive of the webcast will be available on the company's website at https://www.associatedbank.com/investor approximately fifteen minutes after the call is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $27 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe", "expect", "anticipate", "plan", "estimate", "should", "will", "intend", "outlook", or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release contains references to measures which are not defined in generally accepted accounting principles ("GAAP"), including "efficiency ratio," "Tier 1 common equity", and "core fee-based revenue." Information concerning these non-GAAP financial measures can be found in the attached tables.
Investor Contact:
Brian Klaus, Senior Vice
President, Director of
Investor Relations
920-491-7059
------------
Media Contact:
Cliff Bowers, Senior Vice
President, Director of
Public Relations
920-491-7542
------------
Associated Banc-Corp
Consolidated Balance
Sheets (Unaudited)
December 31, September 30, Seql Qtr June 30, March 31, December 31, Comp Qtr
(in thousands) 2014 2014 $ Change 2014 2014 2013 $ Change
------------- ---- ---- -------- ---- ---- ---- --------
Assets
Cash and due from banks $444,113 $381,287 $62,826 $549,883 $526,951 $455,482 $(11,369)
Interest-bearing
deposits in other
financial institutions 571,924 74,945 496,979 78,233 92,071 126,018 445,906
Federal funds sold and
securities purchased
under agreements to
resell 16,030 18,320 (2,290) 18,135 4,400 20,745 (4,715)
Securities held to
maturity, at amortized
cost 404,455 301,941 102,514 246,050 193,759 175,210 229,245
Securities available for
sale, at fair value 5,396,812 5,345,422 51,390 5,506,379 5,277,908 5,250,585 146,227
Federal Home Loan Bank
and Federal
Reserve Bank stocks, at
cost 189,107 188,875 232 186,247 181,360 181,249 7,858
Loans held for sale 154,935 141,672 13,263 78,657 46,529 64,738 90,197
Loans 17,593,846 17,159,090 434,756 17,045,052 16,441,444 15,896,261 1,697,585
Allowance for loan
losses (266,302) (266,262) (40) (271,851) (267,916) (268,315) 2,013
-------- -------- --- -------- -------- -------- -----
Loans, net 17,327,544 16,892,828 434,716 16,773,201 16,173,528 15,627,946 1,699,598
Premises and equipment,
net 274,688 272,283 2,405 264,735 269,257 270,890 3,798
Goodwill 929,168 929,168 - 929,168 929,168 929,168 -
Other intangible assets,
net 67,582 69,201 (1,619) 70,538 72,629 74,464 (6,882)
Trading assets 35,163 34,005 1,158 40,630 40,822 43,728 (8,565)
Other assets 1,010,253 1,003,875 6,378 985,930 997,815 1,006,697 3,556
--------- --------- ----- ------- ------- --------- -----
Total assets $26,821,774 $25,653,822 $1,167,952 $25,727,786 $24,806,197 $24,226,920 $2,594,854
=========== =========== ========== =========== =========== =========== ==========
Liabilities and
Stockholders' Equity
Noninterest-bearing
demand deposits $4,505,272 $4,302,454 $202,818 $4,211,057 $4,478,981 $4,626,312 $(121,040)
Interest-bearing
deposits 14,258,232 13,898,804 359,428 13,105,202 13,030,946 12,640,855 1,617,377
---------- ---------- ------- ---------- ---------- ---------- ---------
Total deposits 18,763,504 18,201,258 562,246 17,316,259 17,509,927 17,267,167 1,496,337
Federal funds purchased
and securities sold
under agreements to
repurchase 493,991 765,641 (271,650) 959,051 939,254 475,442 18,549
Other short-term funding 574,297 664,539 (90,242) 1,378,120 308,652 265,484 308,813
Long-term funding 3,930,117 2,931,547 998,570 2,931,809 2,932,040 3,087,267 842,850
Trading liabilities 37,329 36,003 1,326 43,311 43,450 46,470 (9,141)
Accrued expenses and
other liabilities 222,285 185,256 37,029 169,290 171,850 193,800 28,485
------- ------- ------ ------- ------- ------- ------
Total liabilities 24,021,523 22,784,244 1,237,279 22,797,840 21,905,173 21,335,630 2,685,893
Stockholders' Equity
Preferred equity 59,727 61,024 (1,297) 61,024 61,158 61,862 (2,135)
Common stock 1,665 1,719 (54) 1,750 1,750 1,750 (85)
Surplus 1,484,933 1,583,032 (98,099) 1,628,356 1,623,323 1,617,990 (133,057)
Retained earnings 1,497,818 1,466,525 31,293 1,432,518 1,402,549 1,392,508 105,310
Accumulated other
comprehensive
income (loss) (4,850) (1,725) (3,125) 10,494 (11,577) (24,244) 19,394
Treasury stock (239,042) (240,997) 1,955 (204,196) (176,179) (158,576) (80,466)
-------- -------- ----- -------- -------- -------- -------
Total stockholders'
equity 2,800,251 2,869,578 (69,327) 2,929,946 2,901,024 2,891,290 (91,039)
--------- --------- ------- --------- --------- --------- -------
Total liabilities and
stockholders' equity $26,821,774 $25,653,822 $1,167,952 $25,727,786 $24,806,197 $24,226,920 $2,594,854
=========== =========== ========== =========== =========== =========== ==========
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) 2014 2013 $ Change % Change 2014 2013 $ Change % Change
--------------------- ---- ---- -------- -------- ---- ---- -------- --------
Interest Income
Interest and fees on
loans $156,536 $148,884 $7,652 5.1% $598,582 $587,526 $11,056 1.9%
Interest and dividends
on investment
securities:
Taxable 25,061 24,316 745 3.1% 102,464 88,919 13,545 15.2%
Tax-exempt 7,580 6,884 696 10.1% 29,064 27,345 1,719 6.3%
Other interest 1,821 1,453 368 25.3% 6,635 5,193 1,442 27.8%
----- ----- --- ----- ----- -----
Total interest income 190,998 181,537 9,461 5.2% 736,745 708,983 27,762 3.9%
Interest Expense
Interest on deposits 7,319 7,340 (21) (0.3%) 26,294 31,267 (4,973) (15.9%)
Interest on Federal
funds purchased and
securities
sold under agreements
to repurchase 218 271 (53) (19.6%) 1,219 1,322 (103) (7.8%)
Interest on other
short-term funding 156 228 (72) (31.6%) 785 1,519 (734) (48.3%)
Interest on long-term
funding 8,644 6,499 2,145 33.0% 27,480 29,332 (1,852) (6.3%)
----- ----- ----- ------ ------ ------
Total interest expense 16,337 14,338 1,999 13.9% 55,778 63,440 (7,662) (12.1%)
------ ------ ----- ------ ------ ------
Net Interest Income 174,661 167,199 7,462 4.5% 680,967 645,543 35,424 5.5%
Provision for credit
losses 5,000 2,300 2,700 117.4% 16,000 10,100 5,900 58.4%
----- ----- ----- ------ ------ -----
Net interest income
after provision for
credit losses 169,661 164,899 4,762 2.9% 664,967 635,443 29,524 4.6%
Noninterest Income
Trust service fees 12,457 11,938 519 4.3% 48,403 45,633 2,770 6.1%
Service charges on
deposit accounts 17,006 17,330 (324) (1.9%) 68,779 70,009 (1,230) (1.8%)
Card-based and other
nondeposit fees 12,019 12,684 (665) (5.2%) 49,512 49,913 (401) (0.8%)
Insurance commissions 10,593 11,274 (681) (6.0%) 44,421 44,024 397 0.9%
Brokerage and annuity
commissions 3,496 3,881 (385) (9.9%) 16,089 14,877 1,212 8.1%
----- ----- ---- ------ ------ -----
Total core fee-based
revenue 55,571 57,107 (1,536) (2.7%) 227,204 224,456 2,748 1.2%
Mortgage banking, net 2,928 8,277 (5,349) (64.6%) 21,320 48,847 (27,527) (56.4%)
Capital market fees,
net 2,613 2,771 (158) (5.7%) 9,973 13,080 (3,107) (23.8%)
Bank owned life
insurance income 2,739 2,787 (48) (1.7%) 13,576 11,855 1,721 14.5%
Asset gains, net 3,727 2,687 1,040 38.7% 10,288 5,413 4,875 90.1%
Investment securities
gains (losses), net 25 (18) 43 N/M 494 564 (70) (12.4%)
Other 2,040 2,262 (222) (9.8%) 7,464 8,884 (1,420) (16.0%)
----- ----- ---- ----- ----- ------
Total noninterest
income 69,643 75,873 (6,230) (8.2%) 290,319 313,099 (22,780) (7.3%)
Noninterest Expense
Personnel expense 97,258 101,215 (3,957) (3.9%) 390,399 397,015 (6,616) (1.7%)
Occupancy 14,589 14,684 (95) (0.6%) 57,677 59,409 (1,732) (2.9%)
Equipment 6,148 6,509 (361) (5.5%) 24,784 25,351 (567) (2.2%)
Technology 14,581 12,963 1,618 12.5% 55,472 49,445 6,027 12.2%
Business development
and advertising 8,538 7,834 704 9.0% 26,144 23,346 2,798 12.0%
Other intangible
amortization 775 1,011 (236) (23.3%) 3,747 4,043 (296) (7.3%)
Loan expense 3,646 3,677 (31) (0.8%) 13,866 13,162 704 5.3%
Legal and professional
fees 4,257 5,916 (1,659) (28.0%) 17,485 20,226 (2,741) (13.6%)
Foreclosure /OREO
expense 1,168 2,829 (1,661) (58.7%) 6,722 10,068 (3,346) (33.2%)
FDIC expense 6,956 4,879 2,077 42.6% 23,761 19,461 4,300 22.1%
Other 13,889 17,650 (3,761) (21.3%) 59,184 59,123 61 0.1%
------ ------ ------ ------ ------ ---
Total noninterest
expense 171,805 179,167 (7,362) (4.1%) 679,241 680,649 (1,408) (0.2%)
------- ------- ------ ------- ------- ------
Income before income
taxes 67,499 61,605 5,894 9.6% 276,045 267,893 8,152 3.0%
Income tax expense 18,761 13,847 4,914 35.5% 85,536 79,201 6,335 8.0%
------ ------ ----- ------ ------ -----
Net income 48,738 47,758 980 2.1% 190,509 188,692 1,817 1.0%
Preferred stock
dividends 1,225 1,273 (48) (3.8%) 5,002 5,158 (156) (3.0%)
----- ----- --- ----- ----- ----
Net income available to
common equity $47,513 $46,485 $1,028 2.2% $185,507 $183,534 $1,973 1.1%
======= ======= ====== ======== ======== ======
Earnings Per Common
Share:
Basic $0.31 $0.28 $0.03 10.7% $1.17 $1.10 $0.07 6.4%
Diluted $0.31 $0.28 $0.03 10.7% $1.16 $1.10 $0.06 5.5%
Average Common Shares
Outstanding:
Basic 151,931 162,611 (10,680) (6.6%) 157,286 165,584 (8,298) (5.0%)
Diluted 153,083 163,235 (10,152) (6.2%) 158,254 165,802 (7,548) (4.6%)
N/M = Not meaningful
Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend
Sequential Qtr Comparable Qtr
(in thousands, except
per share amounts) 4Q14 3Q14 $ Change % 2Q14 1Q14 4Q13 $ Change %
Change Change
--- --- --- ------
Interest Income
Interest and fees on
loans $156,536 $152,030 $4,506 3.0% $146,629 $143,387 $148,884 $7,652 5.1%
Interest and dividends on investment securities:
Taxable 25,061 25,037 24 0.1% 26,109 26,257 24,316 745 3.1%
Tax-exempt 7,580 7,483 97 1.3% 7,030 6,971 6,884 696 10.1%
Other interest 1,821 1,503 318 21.2% 1,862 1,449 1,453 368 25.3%
----- ----- --- ----- ----- ----- ---
Total interest
income 190,998 186,053 4,945 2.7% 181,630 178,064 181,537 9,461 5.2%
Interest Expense
Interest on deposits 7,319 6,621 698 10.5% 6,195 6,159 7,340 (21) (0.3%)
Interest on Federal funds purchased and
securities sold
under agreements to
repurchase 218 390 (172) (44.1%) 306 305 271 (53) (19.6%)
Interest on other
short-term funding 156 233 (77) (33.0%) 280 116 228 (72) (31.6%)
Interest on long-
term funding 8,644 6,179 2,465 39.9% 6,146 6,511 6,499 2,145 33.0%
----- ----- ----- ----- ----- ----- -----
Total interest
expense 16,337 13,423 2,914 21.7% 12,927 13,091 14,338 1,999 13.9%
------ ------ ----- ------ ------ ------ -----
Net Interest Income 174,661 172,630 2,031 1.2% 168,703 164,973 167,199 7,462 4.5%
Provision for credit
losses 5,000 1,000 4,000 N/M 5,000 5,000 2,300 2,700 117.4%
----- ----- ----- ----- ----- ----- -----
Net interest income after provision for
credit losses 169,661 171,630 (1,969) (1.1%) 163,703 159,973 164,899 4,762 2.9%
Noninterest Income
Trust service fees 12,457 12,218 239 2.0% 12,017 11,711 11,938 519 4.3%
Service charges on
deposit accounts 17,006 17,961 (955) (5.3%) 17,412 16,400 17,330 (324) (1.9%)
Card-based and
other nondeposit
fees 12,019 12,407 (388) (3.1%) 12,577 12,509 12,684 (665) (5.2%)
Insurance
commissions 10,593 7,860 2,733 34.8% 13,651 12,317 11,274 (681) (6.0%)
Brokerage and
annuity commissions 3,496 4,040 (544) (13.5%) 4,520 4,033 3,881 (385) (9.9%)
----- ----- ---- ----- ----- ----- ----
Total core fee-
based revenue 55,571 54,486 1,085 2.0% 60,177 56,970 57,107 (1,536) (2.7%)
Mortgage banking,
net 2,928 6,669 (3,741) (56.1%) 5,362 6,361 8,277 (5,349) (64.6%)
Capital market fees,
net 2,613 2,939 (326) (11.1%) 2,099 2,322 2,771 (158) (5.7%)
Bank owned life
insurance income 2,739 3,506 (767) (21.9%) 3,011 4,320 2,787 (48) (1.7%)
Asset gains, net 3,727 4,934 (1,207) (24.5%) 899 728 2,687 1,040 38.7%
Investment
securities gains
(losses), net 25 57 (32) (56.1%) 34 378 (18) 43 N/M
Other 2,040 2,317 (277) (12.0%) 665 2,442 2,262 (222) (9.8%)
----- ----- ---- --- ----- ----- ----
Total noninterest
income 69,643 74,908 (5,265) (7.0%) 72,247 73,521 75,873 (6,230) (8.2%)
Noninterest Expense
Personnel expense 97,258 97,650 (392) (0.4%) 97,793 97,698 101,215 (3,957) (3.9%)
Occupancy 14,589 13,743 846 6.2% 13,785 15,560 14,684 (95) (0.6%)
Equipment 6,148 6,133 15 0.2% 6,227 6,276 6,509 (361) (5.5%)
Technology 14,581 13,573 1,008 7.4% 14,594 12,724 12,963 1,618 12.5%
Business development
and advertising 8,538 7,467 1,071 14.3% 5,077 5,062 7,834 704 9.0%
Other intangible
amortization 775 990 (215) (21.7%) 991 991 1,011 (236) (23.3%)
Loan expense 3,646 3,813 (167) (4.4%) 3,620 2,787 3,677 (31) (0.8%)
Legal and
professional fees 4,257 4,604 (347) (7.5%) 4,436 4,188 5,916 (1,659) (28.0%)
Foreclosure /OREO
expense 1,168 2,083 (915) (43.9%) 1,575 1,896 2,829 (1,661) (58.7%)
FDIC expense 6,956 6,859 97 1.4% 4,945 5,001 4,879 2,077 42.6%
Other 13,889 14,938 (1,049) (7.0%) 14,882 15,475 17,650 (3,761) (21.3%)
------ ------ ------ ------ ------ ------ ------
Total noninterest
expense 171,805 171,853 (48) (0.0%) 167,925 167,658 179,167 (7,362) (4.1%)
------- ------- --- ------- ------- ------- ------
Income before income
taxes 67,499 74,685 (7,186) (9.6%) 68,025 65,836 61,605 5,894 9.6%
Income tax expense 18,761 24,478 (5,717) (23.4%) 21,660 20,637 13,847 4,914 35.5%
------ ------ ------ ------ ------ ------ -----
Net income 48,738 50,207 (1,469) (2.9%) 46,365 45,199 47,758 980 2.1%
Preferred stock
dividends 1,225 1,255 (30) (2.4%) 1,278 1,244 1,273 (48) (3.8%)
----- ----- --- ----- ----- ----- ---
Net income available
to common equity $47,513 $48,952 $(1,439) (2.9%) $45,087 $43,955 $46,485 $1,028 2.2%
======= ======= ======= ======= ======= ======= ======
Earnings Per Common Share:
Basic $0.31 $0.31 $ - 0.0% $0.28 $0.27 $0.28 $0.03 10.7%
Diluted $0.31 $0.31 $ - 0.0% $0.28 $0.27 $0.28 $0.03 10.7%
Average Common Shares Outstanding:
Basic 151,931 155,925 (3,994) (2.6%) 159,940 161,467 162,611 (10,680) (6.6%)
Diluted 153,083 156,991 (3,908) (2.5%) 160,838 162,188 163,235 (10,152) (6.2%)
N/M = Not meaningful.
Associated Banc-Corp
Selected Quarterly Information
------------------------------
($ in millions, except per
share and full time
equivalent employee data) YTD 2014 YTD 2013 4Q14 3Q14 2Q14 1Q14 4Q13
-------------------------- -------- -------- ---- ---- ---- ---- ----
Per Common Share Data
Dividends $0.37 $0.33 $0.10 $0.09 $0.09 $0.09 $0.09
Market Value:
High 19.37 17.60 19.37 18.90 18.39 18.35 17.56
Low 15.58 13.46 16.75 17.42 16.82 15.58 15.34
Close 18.63 17.40 18.63 17.42 18.08 18.06 17.40
Book value 18.32 17.40 18.32 18.15 17.99 17.64 17.40
Tier 1 common equity /
share 12.09 11.77 12.09 12.10 12.04 11.88 11.77
Tangible book value /
share $12.06 $11.62 $12.06 $12.09 $12.11 $11.80 $11.62
Performance Ratios (annualized)
Return on average assets 0.76% 0.81% 0.75% 0.78% 0.75% 0.76% 0.80%
Return on average tangible
common equity 9.91 9.73 10.27 10.35 9.56 9.45 9.87
Return on average Tier 1
common equity (1) 9.92 9.77 10.35 10.38 9.56 9.38 9.78
Effective tax rate 30.99 29.56 27.79 32.77 31.84 31.35 22.48
Dividend payout ratio (3) 31.62 30.00 32.26 29.03 32.14 33.33 32.14
Average Balances
Common stockholders'
equity $2,811 $2,829 $2,772 $2,815 $2,830 $2,827 $2,810
Average Tier 1 common
equity (1) $1,871 $1,878 $1,821 $1,871 $1,892 $1,900 $1,885
Selected Trend Information
Average full time
equivalent employees 4,406 4,728 4,320 4,359 4,431 4,517 4,584
Trust assets under
management, at market
value $7,993 $7,424 $7,993 $7,700 $7,720 $7,535 $7,424
Total revenue (4) $991 $979 $249 $252 $246 $243 $248
Core fee-based revenue (5) $227 $224 $56 $54 $60 $57 $57
Mortgage loans originated
for sale during period $1,070 $2,304 $292 $298 $276 $204 $327
Mortgage portfolio
serviced for others $7,999 $8,084 $7,999 $8,012 $8,052 $8,084 $8,084
Mortgage servicing rights,
net /Portfolio serviced
for others 0.75% 0.78% 0.75% 0.76% 0.76% 0.77% 0.78%
At Period End
Loans / deposits 93.77% 94.27% 98.43% 93.90% 92.06%
Risk weighted assets (6) (7) $18,568 $18,031 $17,911 $17,075 $16,694
Tier 1 common equity (1) $1,808 $1,873 $1,920 $1,912 $1,913
Stockholders' equity / assets 10.44% 11.19% 11.39% 11.69% 11.93%
Tangible common equity / tangible assets (8) 6.97% 7.57% 7.79% 7.96% 8.11%
Tangible equity / tangible assets (8) 7.20% 7.82% 8.03% 8.22% 8.38%
Tier 1 common equity / risk-weighted assets (6) (7) 9.74% 10.39% 10.72% 11.20% 11.46%
Tier 1 leverage ratio (6) (7) 7.48% 7.87% 8.26% 8.46% 8.70%
Tier 1 risk-based capital ratio (6) (7) 10.06% 10.73% 11.06% 11.56% 11.83%
Total risk-based capital ratio (6) (7) 12.66% 11.98% 12.31% 12.81% 13.09%
Shares outstanding, end of period 149,560 154,743 159,480 161,012 162,623
Non-GAAP Financial Measures Reconciliation
Efficiency ratio (2) 69.97% 71.04% 70.33% 69.44% 69.70% 70.41% 73.70%
Taxable equivalent
adjustment (1.36) (1.45) (1.40) (1.36) (1.32) (1.35) (1.49)
Asset gains, net 0.73 0.39 1.05 1.36 0.26 0.22 0.80
Other intangible
amortization (0.39) (0.42) (0.32) (0.40) (0.41) (0.42) (0.42)
Efficiency ratio, fully
taxable equivalent (2) 68.95% 69.56% 69.66% 69.04% 68.23% 68.86% 72.59%
(1) Tier 1 common equity, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of our capital with the capital of other financial
services companies. Management uses Tier 1 common equity, along with other capital measures, to assess and monitor our capital position. Tier 1 common equity (period end and average) is Tier 1 capital excluding
qualifying perpetual preferred stock and qualifying trust preferred securities.
(2) Efficiency ratio is defined by the Federal Reserve guidance as noninterest expense divided by the sum of net interest income plus noninterest income, excluding investment securities gains /losses, net.
Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment
securities gains /losses, net and asset gains /losses, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and
investment securities. Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt
sources and it excludes certain specific revenue items (such as investment securities gains /losses, net and asset gains /losses, net).
(3) Ratio is based upon basic earnings per common share.
(4) Total revenue, a non-GAAP financial measure, is the sum of taxable equivalent net interest income, core fee-based revenues, and other noninterest income categories, as presented on Page 2 in the Consolidated
Statements of Income and Page 6 in the Net Interest Income Analysis.
(5) Core fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and
annuity commissions, as presented on Page 2 in the Consolidated Statements of Income.
(6) December 31, 2014 data is estimated.
(7) The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes similar capital adequacy requirements and standards for the Bank.
Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital. The sum of Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital. Risk-
based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets consist of total assets plus certain off-balance sheet and market items, subject to
adjustment for predefined credit risk factors.
(8) Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure. These financial measures have been included as they are considered
to be critical metrics with which to analyze and evaluate financial condition and capital strength.
Associated Banc-Corp
Selected Asset Quality
Information Dec14 vs Sep14 Dec14 vs Dec13
(in thousands) Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------- ------------ ------------ -------- ------------ ------------ ------------ --------
Allowance for Loan
Losses
Beginning balance $266,262 $271,851 (2.1%) $267,916 $268,315 $271,724 (2.0%)
Provision for loan
losses 4,500 (3,000) N/M 6,500 5,000 2,000 125.0%
Charge offs (8,778) (14,850) (40.9%) (9,107) (11,361) (18,742) (53.2%)
Recoveries 4,318 12,261 (64.8%) 6,542 5,962 13,333 (67.6%)
----- ------ ----- ----- ------
Net charge offs (4,460) (2,589) 72.3% (2,565) (5,399) (5,409) (17.5%)
------ ------ ------ ------ ------
Ending balance $266,302 $266,262 0.0% $271,851 $267,916 $268,315 (0.8%)
======== ======== ======== ======== ========
Allowance for Unfunded
Commitments
Beginning balance $24,400 $20,400 19.6% $21,900 $21,900 $21,600 13.0%
Provision for unfunded
commitments 500 4,000 (87.5%) (1,500) - 300 66.7%
--- ----- ------ --- ---
Ending balance $24,900 $24,400 2.0% $20,400 $21,900 $21,900 13.7%
======= ======= ======= ======= =======
Allowance for credit
losses $291,202 $290,662 0.2% $292,251 $289,816 $290,215 0.3%
-------------------- -------- -------- --- -------- -------- -------- ---
Net Charge Offs Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $1,323 $572 131.3% $(1,377) $2,725 $4,555 (71.0%)
Commercial real estate -
owner occupied 134 2,210 (93.9%) (550) (124) 967 (86.1%)
Lease financing 9 (6) N/M 29 - (16) N/M
--- --- --- --- ---
Commercial and business
lending 1,466 2,776 (47.2%) (1,898) 2,601 5,506 (73.4%)
Commercial real estate -
investor (132) (4,065) (96.8%) (239) (1,031) 137 N/M
Real estate construction (116) 350 (133.1%) 795 113 (3,130) (96.3%)
---- --- --- --- ------
Commercial real estate
lending (248) (3,715) (93.3%) 556 (918) (2,993) (91.7%)
---- ------ --- ---- ------
Total commercial 1,218 (939) N/M (1,342) 1,683 2,513 (51.5%)
Home equity revolving
lines of credit 1,094 1,098 (0.4%) 1,380 1,182 966 13.3%
Home equity loans 1st
liens 206 118 74.6% 448 406 372 (44.6%)
Home equity loans junior
liens 457 728 (37.2%) 948 859 1,111 (58.9%)
--- --- --- --- -----
Home equity 1,757 1,944 (9.6%) 2,776 2,447 2,449 (28.3%)
Installment and credit
cards 990 910 8.8% 247 113 (611) N/M
Residential mortgage 495 674 (26.6%) 884 1,156 1,058 (53.2%)
--- --- --- ----- -----
Total consumer 3,242 3,528 (8.1%) 3,907 3,716 2,896 11.9%
----- ----- ----- ----- -----
Total net charge offs $4,460 $2,589 72.3% $2,565 $5,399 $5,409 (17.5%)
====== ====== ====== ====== ======
Net Charge Offs to
Average Loans (in basis
points) * Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------
Commercial and
industrial 9 4 (10) 22 38
Commercial real estate -
owner occupied 5 84 (20) (5) 34
Lease financing 7 (5) 22 - (12)
--- --- --- --- ---
Commercial and business
lending 9 17 (12) 17 37
Commercial real estate -
investor (2) (54) (3) (14) 2
Real estate construction (5) 14 33 5 (145)
--- --- --- --- ----
Commercial real estate
lending (2) (37) 6 (10) (32)
--- --- --- --- ---
Total commercial 4 (3) (5) 7 10
Home equity revolving
lines of credit 49 50 64 55 44
Home equity loans 1st
liens 14 7 26 23 19
Home equity loans junior
liens 107 159 196 171 205
--- --- --- --- ---
Home equity 42 45 64 55 52
Installment and credit
cards 86 78 25 11 (59)
Residential mortgage 4 6 9 12 11
--- --- --- --- ---
Total consumer 19 22 25 25 19
--- --- --- --- ---
Total net charge offs 10 6 6 14 14
=== === === === ===
Credit Quality Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Nonaccrual loans $177,413 $184,138 (3.7%) $179,226 $177,978 $185,428 (4.3%)
Other real estate owned
(OREO) 16,732 16,840 (0.6%) 17,729 19,173 18,118 (7.6%)
------ ------ ------ ------ ------
Total nonperforming
assets $194,145 $200,978 (3.4%) $196,955 $197,151 $203,546 (4.6%)
======== ======== ======== ======== ========
Loans 90 or more days
past due and still
accruing $1,623 $1,690 (4.0%) $1,776 $723 $2,350 (30.9%)
Allowance for loan
losses /loans 1.51% 1.55% 1.59% 1.63% 1.69%
Allowance for loan
losses /nonaccrual
loans 150.10 144.60 151.68 150.53 144.70
Nonaccrual loans /total
loans 1.01 1.07 1.05 1.08 1.17
Nonperforming assets /
total loans plus OREO 1.10 1.17 1.15 1.20 1.28
Nonperforming assets /
total assets 0.72 0.78 0.77 0.79 0.84
Net charge offs /
average loans
(annualized) 0.10 0.06 0.06 0.14 0.14
Year-to-date net
charge offs /average
loans 0.09 0.08 0.10 0.14 0.25
Nonaccrual loans by
type:
Commercial and
industrial $49,663 $51,143 (2.9%) $40,846 $38,488 $37,719 31.7%
Commercial real estate -
owner occupied 25,825 24,340 6.1% 31,725 26,735 29,664 (12.9%)
Lease financing 1,801 1,947 (7.5%) 1,541 172 69 N/M
----- ----- ----- --- ---
Commercial and business
lending 77,289 77,430 (0.2%) 74,112 65,395 67,452 14.6%
Commercial real estate -
investor 22,685 25,106 (9.6%) 28,135 33,611 37,596 (39.7%)
Real estate construction 5,399 8,187 (34.1%) 6,988 6,667 6,467 (16.5%)
----- ----- ----- ----- -----
Commercial real estate
lending 28,084 33,293 (15.6%) 35,123 40,278 44,063 (36.3%)
------ ------ ------ ------ ------
Total commercial 105,373 110,723 (4.8%) 109,235 105,673 111,515 (5.5%)
Home equity revolving
lines of credit 9,853 10,154 (3.0%) 10,056 10,356 11,883 (17.1%)
Home equity loans 1st
liens 5,290 4,664 13.4% 4,634 5,341 6,135 (13.8%)
Home equity loans junior
liens 6,598 6,443 2.4% 6,183 6,788 7,149 (7.7%)
----- ----- ----- ----- -----
Home equity 21,741 21,261 2.3% 20,873 22,485 25,167 (13.6%)
Installment and credit
cards 613 653 (6.1%) 771 915 1,114 (45.0%)
Residential mortgage 49,686 51,501 (3.5%) 48,347 48,905 47,632 4.3%
------ ------ ------ ------ ------
Total consumer 72,040 73,415 (1.9%) 69,991 72,305 73,913 (2.5%)
------ ------ ------ ------ ------
Total nonaccrual loans $177,413 $184,138 (3.7%) $179,226 $177,978 $185,428 (4.3%)
======== ======== ======== ======== ========
* Annualized.
N/M = Not meaningful.
Associated Banc-Corp
Selected Asset Quality
Information
(continued) Dec14 vs Sep14 Dec14 vs Dec13
(in thousands) Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------- ------------ ------------ -------- ------------ ------------ ------------ --------
Restructured loans
(accruing)
Commercial and
industrial $33,892 $36,955 (8.3%) $28,849 $27,776 $32,517 4.2%
Commercial real estate
-owner occupied 10,454 11,574 (9.7%) 12,168 11,579 13,009 (19.6%)
Commercial and
business lending 44,346 48,529 (8.6%) 41,017 39,355 45,526 (2.6%)
Commercial real estate
-investor 23,127 24,440 (5.4%) 41,758 46,020 44,946 (48.5%)
Real estate
construction 727 805 (9.7%) 1,224 2,954 3,793 (80.8%)
--- --- ----- ----- -----
Commercial real estate
lending 23,854 25,245 (5.5%) 42,982 48,974 48,739 (51.1%)
------ ------ ------ ------ ------
Total commercial 68,200 73,774 (7.6%) 83,999 88,329 94,265 (27.7%)
Home equity revolving
lines of credit 1,508 1,531 (1.5%) 1,527 1,178 1,117 35.0%
Home equity loans 1st
liens 1,857 1,867 (0.5%) 1,674 1,656 1,436 29.3%
Home equity loans
junior liens 6,701 7,184 (6.7%) 7,243 6,738 7,080 (5.4%)
----- ----- ----- ----- -----
Home equity 10,066 10,582 (4.9%) 10,444 9,572 9,633 4.5%
Installment and credit
cards 974 1,106 (11.9%) 1,185 225 246 295.9%
Residential mortgage 18,976 19,141 (0.9%) 18,753 18,798 19,841 (4.4%)
------ ------ ------ ------ ------
Total consumer 30,016 30,829 (2.6%) 30,382 28,595 29,720 1.0%
------ ------ ------ ------ ------
Total restructured
loans (accruing) $98,216 $104,603 (6.1%) $114,381 $116,924 $123,985 (20.8%)
======= ======== ======== ======== ========
Restructured loans in
nonaccrual loans (not
included above) $57,656 $63,314 (8.9%) $72,388 $74,231 $59,585 (3.2%)
Loans Past Due 30-89
Days Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $14,747 $3,947 273.6% $2,519 $4,126 $6,826 116.0%
Commercial real estate
-owner occupied 10,628 2,675 297.3% 6,323 5,342 3,106 242.2%
Lease financing - - N/M 556 567 - N/M
--- --- --- --- ---
Commercial and
business lending 25,375 6,622 283.2% 9,398 10,035 9,932 155.5%
Commercial real estate
-investor 1,208 15,869 (92.4%) 2,994 7,188 23,215 (94.8%)
Real estate
construction 984 399 146.6% 258 679 1,954 (49.6%)
--- --- --- --- -----
Commercial real estate
lending 2,192 16,268 (86.5%) 3,252 7,867 25,169 (91.3%)
----- ------ ----- ----- ------
Total commercial 27,567 22,890 20.4% 12,650 17,902 35,101 (21.5%)
Home equity revolving
lines of credit 6,725 6,739 (0.2%) 6,986 5,344 6,728 (0.0%)
Home equity loans 1st
liens 1,800 1,503 19.8% 1,685 1,469 1,110 62.2%
Home equity loans
junior liens 2,058 2,496 (17.5%) 2,138 3,006 2,842 (27.6%)
----- ----- ----- ----- -----
Home equity 10,583 10,738 (1.4%) 10,809 9,819 10,680 (0.9%)
Installment and credit
cards 1,932 1,818 6.3% 1,734 1,269 1,150 68.0%
Residential mortgage 3,046 3,231 (5.7%) 7,070 4,498 6,118 (50.2%)
----- ----- ----- ----- -----
Total consumer 15,561 15,787 (1.4%) 19,613 15,586 17,948 (13.3%)
------ ------ ------ ------ ------
Total loans past due
30-89 days $43,128 $38,677 11.5% $32,263 $33,488 $53,049 (18.7%)
======= ======= ======= ======= =======
Potential Problem
Loans Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $108,522 $133,416 (18.7%) $187,251 $109,027 $113,669 (4.5%)
Commercial real estate
-owner occupied 48,695 49,008 (0.6%) 57,757 64,785 56,789 (14.3%)
Lease financing 2,709 3,787 (28.5%) 2,280 3,065 1,784 51.8%
----- ----- ----- ----- -----
Commercial and
business lending 159,926 186,211 (14.1%) 247,288 176,877 172,242 (7.2%)
Commercial real estate
-investor 24,043 28,474 (15.6%) 31,903 34,790 52,429 (54.1%)
Real estate
construction 1,776 2,227 (20.3%) 4,473 4,870 5,263 (66.3%)
----- ----- ----- ----- -----
Commercial real estate
lending 25,819 30,701 (15.9%) 36,376 39,660 57,692 (55.2%)
------ ------ ------ ------ ------
Total commercial 185,745 216,912 (14.4%) 283,664 216,537 229,934 (19.2%)
Home equity revolving
lines of credit 204 224 (8.9%) 277 310 303 (32.7%)
Home equity loans
junior liens 676 687 (1.6%) 822 741 1,810 (62.7%)
--- --- --- --- -----
Home equity 880 911 (3.4%) 1,099 1,051 2,113 (58.4%)
Installment and credit
cards 2 4 (50.0%) 844 - 50 (96.0%)
Residential mortgage 3,781 2,166 74.6% 2,445 2,091 3,312 14.2%
----- ----- ----- ----- -----
Total consumer 4,663 3,081 51.3% 4,388 3,142 5,475 (14.8%)
----- ----- ----- ----- -----
Total potential
problem loans $190,408 $219,993 (13.4%) $288,052 $219,679 $235,409 (19.1%)
======== ======== ======== ======== ========
N/M = Not meaningful.
Associated Banc-Corp
Net Interest Income Analysis - Taxable Equivalent Basis
Sequential Quarter Three months ended December 31, 2014 Three months ended September 30,
2014
------------------------------------ ---------------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ---------------- ------------ ------- ---------------- ------------
Earning assets:
Loans: (1) (2) (3)
Commercial and
business lending $6,720,893 $59,197 3.50% $6,652,227 $54,990 3.28%
Commercial real
estate lending 4,066,143 37,122 3.62 4,019,286 37,780 3.73
--------- ------ --------- ------
Total commercial 10,787,036 96,319 3.54 10,671,513 92,770 3.45
Residential mortgage 4,490,075 36,228 3.23 4,309,121 35,264 3.27
Retail 2,110,144 24,942 4.71 2,160,327 24,968 4.60
--------- ------ --------- ------
Total loans 17,387,255 157,489 3.60 17,140,961 153,002 3.55
Investment securities
(1) 5,697,598 36,658 2.57 5,619,982 36,486 2.60
Other short-term
investments 407,644 1,821 1.78 335,774 1,503 1.79
------- ----- ------- -----
Investments and other 6,105,242 38,479 2.52 5,955,756 37,989 2.55
--------- ------ --------- ------
Total earning assets 23,492,497 $195,968 3.32 23,096,717 $190,991 3.29
Other assets, net 2,388,268 2,375,335
--------- ---------
Total assets $25,880,765 $25,472,052
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,264,195 $253 0.08% $1,269,994 $254 0.08%
Interest-bearing
demand deposits 3,142,537 1,220 0.15 3,096,712 1,111 0.14
Money market deposits 8,209,091 3,547 0.17 7,721,167 3,153 0.16
Time deposits 1,549,565 2,299 0.59 1,545,851 2,103 0.54
--------- ----- --------- -----
Total interest-
bearing deposits 14,165,388 7,319 0.20 13,633,724 6,621 0.19
Federal funds purchased and securities sold under
agreements to
repurchase 600,969 218 0.14 927,904 390 0.17
Other short-term
funding 464,866 156 0.13 665,647 233 0.14
Long-term funding 3,221,574 8,644 1.07 2,931,714 6,179 0.84
--------- ----- --------- -----
Total short and long-
term funding 4,287,409 9,018 0.84 4,525,265 6,802 0.60
--------- ----- --------- -----
Total interest-
bearing liabilities 18,452,797 $16,337 0.35 18,158,989 $13,423 0.29
Noninterest-bearing
demand deposits 4,367,031 4,239,654
Other liabilities 228,600 197,330
Stockholders' equity 2,832,337 2,876,079
--------- ---------
Total liabilities and
stockholders' equity $25,880,765 $25,472,052
=========== ===========
Net interest income and rate spread $179,631 2.97% $177,568 3.00%
======== ========
Net interest margin 3.04% 3.06%
Taxable equivalent adjustment $4,970 $4,938
====== ======
Net Interest Income Analysis - Taxable Equivalent Basis
Comparable Quarter Three months ended December 31, 2014 Three months ended December 31, 2013
------------------------------------ ------------------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ---------------- ------------ ------- ---------------- ------------
Earning assets:
Loans: (1) (2) (3)
Commercial and
business lending $6,720,893 $59,197 3.50% $5,882,438 $51,498 3.47%
Commercial real
estate lending 4,066,143 37,122 3.62 3,736,314 40,241 4.28
--------- ------ --------- ------
Total commercial 10,787,036 96,319 3.54 9,618,752 91,739 3.79
Residential mortgage 4,490,075 36,228 3.23 3,856,944 32,201 3.34
Retail 2,110,144 24,942 4.71 2,272,588 25,851 4.53
--------- ------ --------- ------
Total loans 17,387,255 157,489 3.60 15,748,284 149,791 3.78
Investment securities
(1) 5,697,598 36,658 2.57 5,188,616 35,331 2.72
Other short-term
investments 407,644 1,821 1.78 305,165 1,453 1.90
------- ----- ------- -----
Investments and other 6,105,242 38,479 2.52 5,493,781 36,784 2.68
--------- ------ --------- ------
Total earning assets 23,492,497 $195,968 3.32 21,242,065 $186,575 3.50
Other assets, net 2,388,268 2,316,660
--------- ---------
Total assets $25,880,765 $23,558,725
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,264,195 $253 0.08% $1,200,338 $248 0.08%
Interest-bearing
demand deposits 3,142,537 1,220 0.15 2,852,090 1,047 0.15
Money market deposits 8,209,091 3,547 0.17 7,748,650 3,399 0.17
Time deposits 1,549,565 2,299 0.59 1,727,138 2,646 0.61
--------- ----- --------- -----
Total interest-
bearing deposits 14,165,388 7,319 0.20 13,528,216 7,340 0.22
Federal funds purchased and securities sold under
agreements to
repurchase 600,969 218 0.14 613,943 271 0.18
Other short-term
funding 464,866 156 0.13 726,551 228 0.12
Long-term funding 3,221,574 8,644 1.07 1,266,464 6,499 2.05
--------- ----- --------- -----
Total short and long-
term funding 4,287,409 9,018 0.84 2,606,958 6,998 1.07
--------- ----- --------- -----
Total interest-
bearing liabilities 18,452,797 $16,337 0.35 16,135,174 $14,338 0.35
Noninterest-bearing
demand deposits 4,367,031 4,353,315
Other liabilities 228,600 197,598
Stockholders' equity 2,832,337 2,872,638
--------- ---------
Total liabilities and
stockholders' equity $25,880,765 $23,558,725
=========== ===========
Net interest income and rate spread $179,631 2.97% $172,237 3.15%
======== ========
Net interest margin 3.04% 3.23%
Taxable equivalent adjustment $4,970 $5,038
====== ======
(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, 2014 Year ended December 31, 2013
---------------------------- ----------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ---------------- ------------ ------- ---------------- ------------
Earning assets:
Loans: (1) (2) (3)
Commercial and
business lending $6,495,338 $219,386 3.38% $5,809,578 $208,039 3.58%
Commercial real
estate lending 3,990,675 146,802 3.68 3,705,526 149,539 4.04
--------- ------- --------- -------
Total commercial 10,486,013 366,188 3.49 9,515,104 357,578 3.76
Residential
mortgage 4,202,727 137,731 3.28 3,714,544 123,275 3.32
Retail 2,150,254 98,481 4.58 2,433,497 110,338 4.53
--------- ------ --------- -------
Total loans 16,838,994 602,400 3.58 15,663,145 591,191 3.77
Investment
securities (1) 5,594,232 146,931 2.63 4,995,331 132,671 2.66
Other short-term
investments 326,902 6,635 2.03 321,652 5,193 1.61
------- ----- ------- -----
Investments and
other 5,921,134 153,566 2.59 5,316,983 137,864 2.59
--------- ------- --------- -------
Total earning
assets 22,760,128 $755,966 3.32 20,980,128 $729,055 3.47
Other assets, net 2,351,469 2,325,630
--------- ---------
Total assets $25,111,597 $23,305,758
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,249,452 $968 0.08% $1,188,910 $942 0.08%
Interest-bearing
demand deposits 2,983,747 4,124 0.14 2,827,778 4,517 0.16
Money market
deposits 7,614,042 12,452 0.16 7,322,476 13,702 0.19
Time deposits 1,587,641 8,750 0.55 1,849,718 12,106 0.65
--------- ----- --------- ------
Total interest-
bearing deposits 13,434,882 26,294 0.20 13,188,882 31,267 0.24
Federal funds purchased and securities sold under
agreements to
repurchase 795,257 1,219 0.15 675,574 1,322 0.20
Other short-term
funding 573,460 785 0.14 1,198,264 1,519 0.13
Long-term funding 3,022,787 27,480 0.91 901,927 29,332 3.25
--------- ------ ------- ------
Total short and
long-term
funding 4,391,504 29,484 0.67 2,775,765 32,173 1.16
--------- ------ --------- ------
Total interest-
bearing
liabilities 17,826,386 $55,778 0.31 15,964,647 $63,440 0.40
Noninterest-
bearing demand
deposits 4,212,202 4,249,313
Other liabilities 201,077 199,486
Stockholders'
equity 2,871,932 2,892,312
--------- ---------
Total liabilities
and stockholders'
equity $25,111,597 $23,305,758
=========== ===========
Net interest income and rate spread $700,188 3.01% $665,615 3.07%
======== ========
Net interest margin 3.08% 3.17%
Taxable equivalent adjustment $19,221 $20,072
======= =======
(1) The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions.
(2) Nonaccrual loans and loans held for sale have been included in the average balances.
(3) Interest income includes net loan fees.
Associated Banc-Corp
Financial Summary and Comparison
Period End Loan Composition Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $5,905,902 $5,603,899 5.4% $5,616,205 $5,222,141 $4,822,680 22.5%
Commercial real estate
-owner occupied 1,007,937 1,014,335 (0.6%) 1,070,463 1,098,089 1,114,715 (9.6%)
Lease financing 51,529 52,600 (2.0%) 51,873 52,500 55,483 (7.1%)
------ ------ ------ ------ ------
Commercial and
business lending 6,965,368 6,670,834 4.4% 6,738,541 6,372,730 5,992,878 16.2%
Commercial real estate
-investor 3,056,485 3,043,361 0.4% 2,990,732 3,001,219 2,939,456 4.0%
Real estate
construction 1,008,956 982,426 2.7% 1,000,421 969,617 896,248 12.6%
--------- ------- --------- ------- -------
Commercial real estate
lending 4,065,441 4,025,787 1.0% 3,991,153 3,970,836 3,835,704 6.0%
--------- --------- --------- --------- ---------
Total commercial 11,030,809 10,696,621 3.1% 10,729,694 10,343,566 9,828,582 12.2%
Home equity revolving
lines of credit 887,779 880,435 0.8% 866,042 856,679 874,840 1.5%
Home equity loans 1st
liens 584,131 619,774 (5.8%) 659,598 705,835 742,120 (21.3%)
Home equity loans
junior liens 164,148 176,316 (6.9%) 187,732 199,488 208,054 (21.1%)
------- ------- ------- ------- -------
Home equity 1,636,058 1,676,525 (2.4%) 1,713,372 1,762,002 1,825,014 (10.4%)
Installment and credit
cards 454,219 459,682 (1.2%) 469,203 393,321 407,074 11.6%
Residential mortgage 4,472,760 4,326,262 3.4% 4,132,783 3,942,555 3,835,591 16.6%
--------- --------- --------- --------- ---------
Total consumer 6,563,037 6,462,469 1.6% 6,315,358 6,097,878 6,067,679 8.2%
--------- --------- --------- --------- ---------
Total loans $17,593,846 $17,159,090 2.5% $17,045,052 $16,441,444 $15,896,261 10.7%
=========== =========== =========== =========== ===========
Period End Deposit and Customer Funding Composition Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Noninterest-bearing
demand $4,505,272 $4,302,454 4.7% $4,211,057 $4,478,981 $4,626,312 (2.6%)
Savings 1,235,277 1,256,567 (1.7%) 1,275,493 1,252,669 1,159,512 6.5%
Interest-bearing
demand 3,126,854 3,637,411 (14.0%) 2,918,900 3,084,457 2,889,705 8.2%
Money market 8,324,646 7,491,460 11.1% 7,348,650 7,069,173 6,906,442 20.5%
Brokered CDs 42,556 9,242 360.5% 44,809 51,235 50,450 (15.6%)
Other time 1,528,899 1,504,124 1.6% 1,517,350 1,573,412 1,634,746 (6.5%)
--------- --------- --------- --------- ---------
Total deposits 18,763,504 18,201,258 3.1% 17,316,259 17,509,927 17,267,167 8.7%
Customer repo sweeps 384,221 493,451 (22.1%) 489,886 548,179 419,247 (8.4%)
------- ------- ------- ------- -------
Total deposits and
customer funding $19,147,725 $18,694,709 2.4% $17,806,145 $18,058,106 $17,686,414 8.3%
=========== =========== =========== =========== ===========
Network transaction deposits included above
in interest-bearing
demand & money market $2,852,943 $2,207,055 29.3% $2,238,923 $2,141,976 $1,936,403 47.3%
Brokered CDs 42,556 9,242 360.5% 44,809 51,235 50,450 (15.6%)
------ ----- ------ ------ ------
Total network and
brokered funding 2,895,499 2,216,297 30.6% 2,283,732 2,193,211 1,986,853 45.7%
Net customer deposits
and funding (1) $16,252,226 $16,478,412 (1.4%) $15,522,413 $15,864,895 $15,699,561 3.5%
=========== =========== =========== =========== ===========
(1) Total deposits and customer funding excluding total network and brokered funding.
Quarter Average Loan Composition Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $5,665,396 $5,558,135 1.9% $5,335,488 $4,983,943 $4,709,435 20.3%
Commercial real estate
-owner occupied 1,003,179 1,043,001 (3.8%) 1,081,552 1,093,114 1,119,186 (10.4%)
Lease financing 52,318 51,091 2.4% 51,804 54,128 53,817 (2.8%)
------ ------ ------ ------ ------
Commercial and
business lending 6,720,893 6,652,227 1.0% 6,468,844 6,131,185 5,882,438 14.3%
Commercial real estate
-investor 3,062,427 3,013,210 1.6% 3,014,827 2,993,046 2,878,176 6.4%
Real estate
construction 1,003,716 1,006,076 (0.2%) 953,021 914,317 858,138 17.0%
--------- --------- ------- ------- -------
Commercial real estate
lending 4,066,143 4,019,286 1.2% 3,967,848 3,907,363 3,736,314 8.8%
--------- --------- --------- --------- ---------
Total commercial 10,787,036 10,671,513 1.1% 10,436,692 10,038,548 9,618,752 12.1%
Home equity revolving
lines of credit 883,580 875,388 0.9% 866,952 868,614 876,938 0.8%
Home equity loans 1st
liens 601,719 638,592 (5.8%) 681,607 724,995 767,857 (21.6%)
Home equity loans
junior liens 169,845 181,880 (6.6%) 193,727 203,984 214,557 (20.8%)
------- ------- ------- ------- -------
Home equity 1,655,144 1,695,860 (2.4%) 1,742,286 1,797,593 1,859,352 (11.0%)
Installment and credit
cards 455,000 464,467 (2.0%) 389,794 401,742 413,236 10.1%
Residential mortgage 4,490,075 4,309,121 4.2% 4,077,617 3,926,734 3,856,944 16.4%
--------- --------- --------- --------- ---------
Total consumer 6,600,219 6,469,448 2.0% 6,209,697 6,126,069 6,129,532 7.7%
--------- --------- --------- --------- ---------
Total loans $17,387,255 $17,140,961 1.4% $16,646,389 $16,164,617 $15,748,284 10.4%
=========== =========== =========== =========== ===========
Quarter Average Deposit Composition Dec14 vs Sep14 Dec14 vs Dec13
Dec 31, 2014 Sep 30, 2014 % Change Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Noninterest-bearing
demand $4,367,031 $4,239,654 3.0% $4,073,310 $4,166,305 $4,353,315 0.3%
Savings 1,264,195 1,269,994 (0.5%) 1,267,297 1,195,337 1,200,338 5.3%
Interest-bearing
demand 3,142,537 3,096,712 1.5% 2,894,446 2,796,247 2,852,090 10.2%
Money market 8,209,091 7,721,167 6.3% 7,340,244 7,173,106 7,748,650 5.9%
Time deposits 1,549,565 1,545,851 0.2% 1,597,535 1,659,277 1,727,138 (10.3%)
--------- --------- --------- --------- ---------
Total deposits $18,532,419 $17,873,378 3.7% $17,172,832 $16,990,272 $17,881,531 3.6%
=========== =========== =========== =========== ===========
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/associated-reports-2014-earnings-of-116-per-share-on-record-loans-and-deposits-300024465.html
SOURCE Associated Banc-Corp
