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
|
%
Change
|
2Q14
|
1Q14
|
4Q13
|
$ 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