ASB Associated Banc Corp

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 16, 2015

 

 

Associated Banc-Corp

(Exact name of registrant as specified in its charter)

 

 

 

Wisconsin		001-31343		39-1098068
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)
433 Main Street, Green Bay, Wisconsin				54301
(Address of principal executive offices)				(Zip code)

Registrant’s telephone number, including area code 920-491-7500

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02.

Results of Operations and Financial Condition.

On April 16, 2015, Associated Banc-Corp announced its earnings for the quarter ended March 31, 2015. A copy of the registrant’s press release containing this information and the slide presentation discussed on the conference call for investors and analysts on April 16, 2015, are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report on Form 8-K and are incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

Exhibits.

The following exhibits are furnished as part of this Report on Form 8-K:

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				Associated Banc-Corp
				(Registrant)
Date: April 16, 2015				By:		/s/ Christopher J. Del Moral-Niles
						Christopher J. Del Moral-Niles Chief Financial Officer

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ASSOCIATED BANC-CORP

Exhibit Index to Current Report on Form 8-K

 

Exhibit Number
99.1		Press release of the registrant dated April 16, 2015, containing financial information for the quarter ended March 31, 2015.
99.2		Slide presentation discussed on the conference call for investors and analysts on April 16, 2015.

Exhibit 99.1

 

		NEWS RELEASE   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 Reports First Quarter Earnings of $0.30 per share

Earnings per share up 11% from prior year

GREEN BAY, Wis. — April 16, 2015 — Associated Banc-Corp (NYSE: ASB) today reported net income to common shareholders of $45 million, or $0.30 per common share, for the quarter ended March 31, 2015. This compares to net income to common shareholders of $44 million, or $0.27 per common share, for the quarter ended March 31, 2014.

“We are pleased to report another quarter of solid results. Continued loan growth, a strong boost in insurance revenues, and a benign credit environment all helped drive this quarter’s performance,” said President and CEO Philip B. Flynn. “We remain focused on our strategies to enhance efficiency and on opportunities for disciplined capital deployment.”

HIGHLIGHTS

 

•

Average loans grew $428 million or 2% from the fourth quarter

 

•

Average total commercial loan balances grew $309 million, or 3% from the fourth quarter, and accounted for the majority of this quarter’s average loan growth

 

•

Average deposits grew $523 million or 3% from the fourth quarter

 

•

Net interest income of $168 million increased $3 million or 2% from the comparable year ago period

 

•

Noninterest income of $80 million increased $10 million or 15% from the fourth quarter

 

•

Insurance commissions increased $9 million from the fourth quarter

 

•

Noninterest expenses of $174 million increased $2 million or 1% from the fourth quarter

 

•

Pretax income of $69 million increased $2 million or 2% from the fourth quarter

 

•

During the first quarter, the Company repurchased $30 million, or approximately 1.7 million shares, of common stock at an average cost of $17.27 per share

 

•

Return on average Tier 1 common equity was 10.22% for the first quarter

 

•

Capital ratios remain strong with a Tier 1 common equity ratio of 9.39% at March 31, 2015

 

– more –

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FIRST QUARTER 2015 FINANCIAL RESULTS

Loans

Average loans of $17.8 billion increased $428 million, or 2% from the fourth quarter, and have increased $1.7 billion, or 10% from the year ago quarter. Total commercial loans grew $309 million on average from the fourth quarter and are up $1.1 billion from the prior year. Commercial and business lending average balances grew $272 million, or 4% on a linked-quarter basis. Commercial real estate lending average balances grew $37 million, or 1% from the fourth quarter. Total average consumer loans were up $119 million compared to the prior quarter as the growth in residential mortgage average balances of $174 million was partially offset by continued, but slower, run off in home equity and installment loans.

Deposits

Average deposits of $19.1 billion for the first quarter were up $523 million, or 3% compared to the fourth quarter and have increased $2.1 billion, or 12%, from the year ago quarter. Money market average balances increased $444 million, or 5% from the fourth quarter, and were up $1.5 billion, or 21% from the year ago quarter. Average checking balances have increased four consecutive quarters and were up slightly from the fourth quarter. Average time deposits increased $45 million during the quarter marking a reversal of recent trends.

Net Interest Income and Net Interest Margin

First quarter net interest income of $168 million was up $3 million, or 2% from the year ago quarter, but down $7 million from the fourth quarter. First quarter interest recoveries and prepayments were down $2 million relative to the fourth quarter. In addition, long-term funding costs increased $2 million from the fourth quarter. Lastly, the day count difference between the first and fourth quarters resulted in expected lower net interest income of approximately $2 million.

First quarter net interest margin was 2.89%, a decrease of 15 basis points from the 3.04% reported in the fourth quarter. The first quarter yield on earning assets declined 12 basis points from the prior quarter. The majority of this decline is attributed to continued loan yield compression. In addition, lower interest recoveries and prepayments accounted for 3 basis points of the decline in earning asset yields. The majority of the 4 basis point, quarter over quarter increase in total funding costs is related to the full effect of the carrying cost of the Company’s $500 million debt issued in November 2014.

Noninterest Income and Expense

Noninterest income for the first quarter was $80 million, up $10 million or 15% from the fourth quarter, and up $7 million or 9% from the year ago quarter. The Ahmann & Martin Co. acquisition closed during the first quarter and largely contributed to a $9 million increase in insurance commissions from the fourth quarter. Mortgage banking income increased $4 million from the prior quarter. First quarter net asset gains of $1 million were down $3 million from the prior quarter.

 

 

– more –

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Total noninterest expense for the quarter ended March 31, 2015 was $174 million, up $2 million or 1% from the fourth quarter. Personnel expense increased $3 million from the fourth quarter, largely attributed to the Ahmann & Martin Co. acquisition which added approximately 120 colleagues. Occupancy expenses increased by $3 million from the previous quarter, primarily related to a lease termination charge, as we further consolidated office space in Chicago. Business development and advertising expenses declined $3 million from the previous quarter, predominantly related to seasonal advertising during the fourth quarter.

Taxes

First quarter income taxes were $22 million with an effective tax rate of 32%, compared to $21 million with an effective tax rate of 31% in the year ago period.

Credit

Net charge offs of $6 million for the first quarter were up $1 million from the fourth quarter, and were up slightly from the year ago quarter. Potential problem loans of $219 million increased $28 million from the prior quarter. The first quarter provision for credit losses was essentially flat from the prior quarter at $5 million.

The Company’s allowance for loan losses was $265 million, equal to 1.48% of loans and reflects a coverage ratio of 152% of nonaccrual loans at March 31, 2015.

Nonaccrual loans of $174 million were down 2% compared to both the fourth quarter and the year ago quarter. The ratio of nonaccrual loans to total loans was down from the previous quarter and stands at 0.97%.

Capital Ratios

During the first quarter, the Company repurchased $30 million of common stock in several open market transactions.

The Company’s capital position remains strong, with a Tier 1 common equity ratio of 9.39% at March 31, 2015. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.

 

– more –

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FIRST QUARTER 2015 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 16, 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 first quarter 2015 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.

 

# # #

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Associated Banc-Corp

Consolidated Balance Sheets (Unaudited)

 

(in thousands)		March 31, 2015				December 31, 2014				Seql Qtr $ Change				September 30, 2014				June 30, 2014				March 31, 2014				Comp Qtr $ Change
Assets
Cash and due from banks		$	355,541			$	444,113			$	(88,572	)		$	381,287			$	549,883			$	526,951			$	(171,410	)
Interest-bearing deposits in other financial institutions			488,426				571,924				(83,498	)			74,945				78,233				92,071				396,355
Federal funds sold and securities purchased under agreements to resell			3,380				16,030				(12,650	)			18,320				18,135				4,400				(1,020	)
Securities held to maturity, at amortized cost			438,047				404,455				33,592				301,941				246,050				193,759				244,288
Securities available for sale, at fair value			5,358,310				5,396,812				(38,502	)			5,345,422				5,506,379				5,277,908				80,402
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost			189,222				189,107				115				188,875				186,247				181,360				7,862
Loans held for sale			159,963				154,935				5,028				141,672				78,657				46,529				113,434
Loans			17,979,032				17,593,846				385,186				17,159,090				17,045,052				16,441,444				1,537,588
Allowance for loan losses			(265,268	)			(266,302	)			1,034				(266,262	)			(271,851	)			(267,916	)			2,648
Loans, net			17,713,764				17,327,544				386,220				16,892,828				16,773,201				16,173,528				1,540,236
Premises and equipment, net			274,591				274,688				(97	)			272,283				264,735				269,257				5,334
Goodwill			968,774				929,168				39,606				929,168				929,168				929,168				39,606
Other intangible assets, net			77,984				67,582				10,402				69,201				70,538				72,629				5,355
Trading assets			42,336				35,163				7,173				34,005				40,630				40,822				1,514
Other assets			998,402				1,010,253				(11,851	)			1,003,875				985,930				997,815				587
Total assets		$	27,068,740			$	26,821,774			$	246,966			$	25,653,822			$	25,727,786			$	24,806,197			$	2,262,543
Liabilities and Stockholders’ Equity
Noninterest-bearing demand deposits		$	4,570,872			$	4,505,272			$	65,600			$	4,302,454			$	4,211,057			$	4,478,981			$	91,891
Interest-bearing deposits			15,280,720				14,258,232				1,022,488				13,898,804				13,105,202				13,030,946				2,249,774
Total deposits			19,851,592				18,763,504				1,088,088				18,201,258				17,316,259				17,509,927				2,341,665
Federal funds purchased and securities sold under agreements to repurchase			587,272				493,991				93,281				765,641				959,051				939,254				(351,982	)
Other short-term funding			75,265				574,297				(499,032	)			664,539				1,378,120				308,652				(233,387	)
Long-term funding			3,429,925				3,930,117				(500,192	)			2,931,547				2,931,809				2,932,040				497,885
Trading liabilities			44,730				37,329				7,401				36,003				43,311				43,450				1,280
Accrued expenses and other liabilities			197,818				222,285				(24,467	)			185,256				169,290				171,850				25,968
Total liabilities			24,186,602				24,021,523				165,079				22,784,244				22,797,840				21,905,173				2,281,429
Stockholders’ Equity
Preferred equity			59,727				59,727				—				61,024				61,024				61,158				(1,431	)
Common stock			1,674				1,665				9				1,719				1,750				1,750				(76	)
Surplus			1,505,170				1,484,933				20,237				1,583,032				1,628,356				1,623,323				(118,153	)
Retained earnings			1,509,967				1,497,818				12,149				1,466,525				1,432,518				1,402,549				107,418
Accumulated other comprehensive income (loss)			24,800				(4,850	)			29,650				(1,725	)			10,494				(11,577	)			36,377
Treasury stock			(219,200	)			(239,042	)			19,842				(240,997	)			(204,196	)			(176,179	)			(43,021	)
Total stockholders’ equity			2,882,138				2,800,251				81,887				2,869,578				2,929,946				2,901,024				(18,886	)
Total liabilities and stockholders’ equity		$	27,068,740			$	26,821,774			$	246,966			$	25,653,822			$	25,727,786			$	24,806,197			$	2,262,543

 

Page 1

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Associated Banc-Corp

Consolidated Statements of Income (Unaudited)—Quarterly Trend

 

										Sequential Qtr																				Comparable Qtr
(in thousands, except per share amounts)		1Q15				4Q14				$ Change				% Change				3Q14				2Q14				1Q14				$ Change				% Change
Interest Income
Interest and fees on loans		$	151,945			$	156,536			$	(4,591	)			(2.9	)%		$	152,030			$	146,629			$	143,387			$	8,558				6.0	%
Interest and dividends on investment securities:
Taxable			25,092				25,061				31				0.1	%			25,037				26,109				26,257				(1,165	)			(4.4	)%
Tax-exempt			7,887				7,580				307				4.1	%			7,483				7,030				6,971				916				13.1	%
Other interest			1,692				1,821				(129	)			(7.1	)%			1,503				1,862				1,449				243				16.8	%
Total interest income			186,616				190,998				(4,382	)			(2.3	)%			186,053				181,630				178,064				8,552				4.8	%
Interest Expense
Interest on deposits			7,619				7,319				300				4.1	%			6,621				6,195				6,159				1,460				23.7	%
Interest on Federal funds purchased and securities sold under agreements to repurchase			231				218				13				6.0	%			390				306				305				(74	)			(24.3	)%
Interest on other short-term funding			81				156				(75	)			(48.1	)%			233				280				116				(35	)			(30.2	)%
Interest on long-term funding			10,872				8,644				2,228				25.8	%			6,179				6,146				6,511				4,361				67.0	%
Total interest expense			18,803				16,337				2,466				15.1	%			13,423				12,927				13,091				5,712				43.6	%
Net Interest Income			167,813				174,661				(6,848	)			(3.9	)%			172,630				168,703				164,973				2,840				1.7	%
Provision for credit losses			4,500				5,000				(500	)			(10.0	)%			1,000				5,000				5,000				(500	)			(10.0	)%
Net interest income after provision for credit losses			163,313				169,661				(6,348	)			(3.7	)%			171,630				163,703				159,973				3,340				2.1	%
Noninterest Income
Trust service fees			12,087				12,457				(370	)			(3.0	)%			12,218				12,017				11,711				376				3.2	%
Service charges on deposit accounts			15,806				17,006				(1,200	)			(7.1	)%			17,961				17,412				16,400				(594	)			(3.6	)%
Card-based and other nondeposit fees			12,416				12,019				397				3.3	%			12,407				12,577				12,509				(93	)			(0.7	)%
Insurance commissions			19,728				10,593				9,135				86.2	%			7,860				13,651				12,317				7,411				60.2	%
Brokerage and annuity commissions			3,683				3,496				187				5.3	%			4,040				4,520				4,033				(350	)			(8.7	)%
Total core fee-based revenue			63,720				55,571				8,149				14.7	%			54,486				60,177				56,970				6,750				11.8	%
Mortgage banking, net			7,408				2,928				4,480				153.0	%			6,669				5,362				6,361				1,047				16.5	%
Capital market fees, net			2,467				2,613				(146	)			(5.6	)%			2,939				2,099				2,322				145				6.2	%
Bank owned life insurance income			2,875				2,739				136				5.0	%			3,506				3,011				4,320				(1,445	)			(33.4	)%
Asset gains, net			1,096				3,727				(2,631	)			(70.6	)%			4,934				899				728				368				50.5	%
Investment securities gains, net			—				25				(25	)			(100.0	)%			57				34				378				(378	)			(100.0	)%
Other			2,510				2,040				470				23.0	%			2,317				665				2,442				68				2.8	%
Total noninterest income			80,076				69,643				10,433				15.0	%			74,908				72,247				73,521				6,555				8.9	%
Noninterest Expense
Personnel expense			100,152				97,258				2,894				3.0	%			97,650				97,793				97,698				2,454				2.5	%
Occupancy			17,683				14,589				3,094				21.2	%			13,743				13,785				15,560				2,123				13.6	%
Equipment			5,772				6,148				(376	)			(6.1	)%			6,133				6,227				6,276				(504	)			(8.0	)%
Technology			15,558				14,581				977				6.7	%			13,573				14,594				12,724				2,834				22.3	%
Business development and advertising			5,327				8,538				(3,211	)			(37.6	)%			7,467				5,077				5,062				265				5.2	%
Other intangible amortization			801				775				26				3.4	%			990				991				991				(190	)			(19.2	)%
Loan expense			2,996				3,646				(650	)			(17.8	)%			3,813				3,620				2,787				209				7.5	%
Legal and professional fees			4,538				4,257				281				6.6	%			4,604				4,436				4,188				350				8.4	%
Foreclosure / OREO expense			1,425				1,168				257				22.0	%			2,083				1,575				1,896				(471	)			(24.8	)%
FDIC expense			6,500				6,956				(456	)			(6.6	)%			6,859				4,945				5,001				1,499				30.0	%
Other			13,503				13,889				(386	)			(2.8	)%			14,938				14,882				15,475				(1,972	)			(12.7	)%
Total noninterest expense			174,255				171,805				2,450				1.4	%			171,853				167,925				167,658				6,597				3.9	%
Income before income taxes			69,134				67,499				1,635				2.4	%			74,685				68,025				65,836				3,298				5.0	%
Income tax expense			22,462				18,761				3,701				19.7	%			24,478				21,660				20,637				1,825				8.8	%
Net income			46,672				48,738				(2,066	)			(4.2	)%			50,207				46,365				45,199				1,473				3.3	%
Preferred stock dividends			1,228				1,225				3				0.2	%			1,255				1,278				1,244				(16	)			(1.3	)%
Net income available to common equity		$	45,444			$	47,513			$	(2,069	)			(4.4	)%		$	48,952			$	45,087			$	43,955			$	1,489				3.4	%
Earnings Per Common Share:
Basic		$	0.30			$	0.31			$	(0.01	)			(3.2	)%		$	0.31			$	0.28			$	0.27			$	0.03				11.1	%
Diluted		$	0.30			$	0.31			$	(0.01	)			(3.2	)%		$	0.31			$	0.28			$	0.27			$	0.03				11.1	%
Average Common Shares Outstanding:
Basic			150,070				151,931				(1,861	)			(1.2	)%			155,925				159,940				161,467				(11,397	)			(7.1	)%
Diluted			151,164				153,083				(1,919	)			(1.3	)%			156,991				160,838				162,188				(11,024	)			(6.8	)%

 

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Associated Banc-Corp

Selected Quarterly Information

 

($ in millions, except per share and full time equivalent employee data)		1Q15				4Q14				3Q14				2Q14				1Q14
Per Common Share Data
Dividends		$	0.10			$	0.10			$	0.09			$	0.09			$	0.09
Market Value:
High			19.07				19.37				18.90				18.39				18.35
Low			16.62				16.75				17.42				16.82				15.58
Close			18.60				18.63				17.42				18.08				18.06
Book value			18.38				18.32				18.15				17.99				17.64
Tier 1 common equity / share (1) (6)			11.97				12.09				12.10				12.04				11.88
Tangible book value / share		$	11.95			$	12.06			$	12.09			$	12.11			$	11.80
Performance Ratios (annualized)
Return on average assets			0.71	%			0.75	%			0.78	%			0.75	%			0.76	%
Return on average tangible common equity			10.16				10.27				10.35				9.56				9.45
Return on average Tier 1 common equity (1) (6)			10.22				10.35				10.38				9.56				9.38
Effective tax rate			32.49				27.79				32.77				31.84				31.35
Dividend payout ratio (2)			33.33				32.26				29.03				32.14				33.33
Average Balances
Common stockholders’ equity		$	2,785			$	2,772			$	2,815			$	2,830			$	2,827
Average Tier 1 common equity (1) (6)		$	1,804			$	1,821			$	1,871			$	1,892			$	1,900
Selected Trend Information
Average full time equivalent employees			4,422				4,320				4,359				4,431				4,517
Trust assets under management, at market value		$	8,138			$	7,993			$	7,700			$	7,720			$	7,535
Total revenue (3)		$	253			$	249			$	252			$	246			$	243
Core fee-based revenue (4)		$	64			$	56			$	54			$	60			$	57
Mortgage loans originated for sale during period		$	268			$	292			$	298			$	276			$	204
Mortgage portfolio serviced for others		$	7,920			$	7,999			$	8,012			$	8,052			$	8,084
Mortgage servicing rights, net / Portfolio serviced for others			0.75	%			0.75	%			0.76	%			0.76	%			0.77	%
At Period End
Loans / deposits			90.57	%			93.77	%			94.27	%			98.43	%			93.90	%
Stockholders’ equity / assets			10.65	%			10.44	%			11.19	%			11.39	%			11.69	%
Tangible common equity / tangible assets (5)			7.04	%			6.97	%			7.57	%			7.79	%			7.96	%
Tangible equity / tangible assets (5)			7.27	%			7.20	%			7.82	%			8.03	%			8.22	%
Shares outstanding, end of period			153,567				149,560				154,743				159,480				161,012
Capital (6)
Risk weighted assets (7) (8)		$	19,565			$	18,568			$	18,031			$	17,911			$	17,075
Tier 1 common equity (1)		$	1,838			$	1,808			$	1,873			$	1,920			$	1,912
Tier 1 common equity / risk-weighted assets (7) (8)			9.39	%			9.74	%			10.39	%			10.72	%			11.20	%
Tier 1 leverage ratio (7) (8)			7.39	%			7.48	%			7.87	%			8.26	%			8.46	%
Tier 1 risk-based capital ratio (7) (8)			9.70	%			10.06	%			10.73	%			11.06	%			11.56	%
Total risk-based capital ratio (7) (8)			12.21	%			12.66	%			11.98	%			12.31	%			12.81	%
Non-GAAP Financial Measures Reconciliation
Efficiency ratio (9)			70.30	%			70.33	%			69.44	%			69.70	%			70.41	%
Taxable equivalent adjustment			(1.42	)%			(1.40	)%			(1.36	)%			(1.32	)%			(1.35	)%
Asset gains, net			0.30	%			1.05	%			1.36	%			0.26	%			0.22	%
Other intangible amortization			(0.32	)%			(0.32	)%			(0.40	)%			(0.41	)%			(0.42	)%
Efficiency ratio, fully taxable equivalent (9)			68.86	%			69.66	%			69.04	%			68.23	%			68.86	%

 

(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)	Ratio is based upon basic earnings per common share.

(3)	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.

(4)	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.

(5)

Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.

(6)

Prior to 2015, the regulatory capital requirements effective for the Corporation followed the Capital Accord of the Basel Committee on Banking Supervision (“Basel I”). Beginning January 1, 2015, the regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions from Basel I over the next three years to full implementation by January 1, 2018.

(7)	March 31, 2015 data is estimated.

(8)

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.

(9)

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).

 

Page 3

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Associated Banc-Corp

Selected Asset Quality Information

 

(in thousands)		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Allowance for Loan Losses
Beginning balance		$	266,302			$	266,262				—	%		$	271,851			$	267,916			$	268,315				(0.8	)%
Provision for loan losses			4,500				4,500				—	%			(3,000	)			6,500				5,000				(10.0	)%
Charge offs			(13,270	)			(8,778	)			51.2	%			(14,850	)			(9,107	)			(11,361	)			16.8	%
Recoveries			7,736				4,318				79.2	%			12,261				6,542				5,962				29.8	%
Net charge offs			(5,534	)			(4,460	)			24.1	%			(2,589	)			(2,565	)			(5,399	)			2.5	%
Ending balance		$	265,268			$	266,302				(0.4	)%		$	266,262			$	271,851			$	267,916				(1.0	)%
Allowance for Unfunded Commitments
Beginning balance		$	24,900			$	24,400				2.0	%		$	20,400			$	21,900			$	21,900				13.7	%
Provision for unfunded commitments			—				500				(100.0	)%			4,000				(1,500	)			—				N/M
Ending balance		$	24,900			$	24,900				—	%		$	24,400			$	20,400			$	21,900				13.7	%
Allowance for credit losses		$	290,168			$	291,202				(0.4	)%		$	290,662			$	292,251			$	289,816				0.1	%
Net Charge Offs		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Commercial and industrial		$	4,650			$	1,323				251.5	%		$	572			$	(1,377	)		$	2,725				70.6	%
Commercial real estate—owner occupied			739				134				N/M				2,210				(550	)			(124	)			N/M
Lease financing			—				9				(100.0	)%			(6	)			29				—				N/M
Commercial and business lending			5,389				1,466				267.6	%			2,776				(1,898	)			2,601				107.2	%
Commercial real estate—investor			(2,529	)			(132	)			N/M				(4,065	)			(239	)			(1,031	)			145.3	%
Real estate construction			(743	)			(116	)			N/M				350				795				113				N/M
Commercial real estate lending			(3,272	)			(248	)			N/M				(3,715	)			556				(918	)			256.4	%
Total commercial			2,117				1,218				73.8	%			(939	)			(1,342	)			1,683				25.8	%
Home equity revolving lines of credit			1,220				1,094				11.5	%			1,098				1,380				1,182				3.2	%
Home equity loans 1st liens			362				206				75.7	%			118				448				406				(10.8	)%
Home equity loans junior liens			423				457				(7.4	)%			728				948				859				(50.8	)%
Home equity			2,005				1,757				14.1	%			1,944				2,776				2,447				(18.1	)%
Installment and credit cards			769				990				(22.3	)%			910				247				113				N/M
Residential mortgage			643				495				29.9	%			674				884				1,156				(44.4	)%
Total consumer			3,417				3,242				5.4	%			3,528				3,907				3,716				(8.0	)%
Total net charge offs		$	5,534			$	4,460				24.1	%		$	2,589			$	2,565			$	5,399				2.5	%
Net Charge Offs to Average Loans (in basis points) *		Mar 31, 2015				Dec 31, 2014								Sep 30, 2014				Jun 30, 2014				Mar 31, 2014
Commercial and industrial			32				9								4				(10	)			22
Commercial real estate—owner occupied			30				5								84				(20	)			(5	)
Lease financing			—				7								(5	)			22				—
Commercial and business lending			31				9								17				(12	)			17
Commercial real estate—investor			(33	)			(2	)							(54	)			(3	)			(14	)
Real estate construction			(30	)			(5	)							14				33				5
Commercial real estate lending			(32	)			(2	)							(37	)			6				(10	)
Total commercial			8				4								(3	)			(5	)			7
Home equity revolving lines of credit			56				49								50				64				55
Home equity loans 1st liens			26				14								7				26				23
Home equity loans junior liens			108				107								159				196				171
Home equity			51				42								45				64				55
Installment and credit cards			70				86								78				25				11
Residential mortgage			6				4								6				9				12
Total consumer			21				19								22				25				25
Total net charge offs			13				10								6				6				14
Credit Quality		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Nonaccrual loans		$	174,346			$	177,413				(1.7	)%		$	184,138			$	179,226			$	177,978				(2.0	)%
Other real estate owned (OREO)			14,926				16,732				(10.8	)%			16,840				17,729				19,173				(22.2	)%
Total nonperforming assets		$	189,272			$	194,145				(2.5	)%		$	200,978			$	196,955			$	197,151				(4.0	)%
Loans 90 or more days past due and still accruing		$	1,715			$	1,623				5.7	%		$	1,690			$	1,776			$	723				137.2	%
Allowance for loan losses / loans			1.48	%			1.51	%							1.55	%			1.59	%			1.63	%
Allowance for loan losses / nonaccrual loans			152.15				150.10								144.60				151.68				150.53
Nonaccrual loans / total loans			0.97				1.01								1.07				1.05				1.08
Nonperforming assets / total loans plus OREO			1.05				1.10								1.17				1.15				1.20
Nonperforming assets / total assets			0.70				0.72								0.78				0.77				0.79
Net charge offs / average loans (annualized)			0.13				0.10								0.06				0.06				0.14
Year-to-date net charge offs / average loans			0.13				0.09								0.08				0.10				0.14
Nonaccrual loans by type:
Commercial and industrial		$	61,620			$	49,663				24.1	%		$	51,143			$	40,846			$	38,488				60.1	%
Commercial real estate—owner occupied			21,861				25,825				(15.3	)%			24,340				31,725				26,735				(18.2	)%
Lease financing			1,720				1,801				(4.5	)%			1,947				1,541				172				N/M
Commercial and business lending			85,201				77,289				10.2	%			77,430				74,112				65,395				30.3	%
Commercial real estate—investor			13,742				22,685				(39.4	)%			25,106				28,135				33,611				(59.1	)%
Real estate construction			5,423				5,399				0.4	%			8,187				6,988				6,667				(18.7	)%
Commercial real estate lending			19,165				28,084				(31.8	)%			33,293				35,123				40,278				(52.4	)%
Total commercial			104,366				105,373				(1.0	)%			110,723				109,235				105,673				(1.2	)%
Home equity revolving lines of credit			9,171				9,853				(6.9	)%			10,154				10,056				10,356				(11.4	)%
Home equity loans 1st liens			5,111				5,290				(3.4	)%			4,664				4,634				5,341				(4.3	)%
Home equity loans junior liens			6,145				6,598				(6.9	)%			6,443				6,183				6,788				(9.5	)%
Home equity			20,427				21,741				(6.0	)%			21,261				20,873				22,485				(9.2	)%
Installment and credit cards			515				613				(16.0	)%			653				771				915				(43.7	)%
Residential mortgage			49,038				49,686				(1.3	)%			51,501				48,347				48,905				0.3	%
Total consumer			69,980				72,040				(2.9	)%			73,415				69,991				72,305				(3.2	)%
Total nonaccrual loans		$	174,346			$	177,413				(1.7	)%		$	184,138			$	179,226			$	177,978				(2.0	)%

 

*	Annualized

N/M = Not meaningful.

 

Page 4

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Associated Banc-Corp

Selected Asset Quality Information (continued)

 

(in thousands)		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Restructured loans (accruing)
Commercial and industrial		$	26,466			$	33,892				(21.9	)%		$	36,955			$	28,849			$	27,776				(4.7	)%
Commercial real estate—owner occupied			9,780				10,454				(6.4	)%			11,574				12,168				11,579				(15.5	)%
Commercial and business lending			36,246				44,346				(18.3	)%			48,529				41,017				39,355				(7.9	)%
Commercial real estate—investor			22,775				23,127				(1.5	)%			24,440				41,758				46,020				(50.5	)%
Real estate construction			717				727				(1.4	)%			805				1,224				2,954				(75.7	)%
Commercial real estate lending			23,492				23,854				(1.5	)%			25,245				42,982				48,974				(52.0	)%
Total commercial			59,738				68,200				(12.4	)%			73,774				83,999				88,329				(32.4	)%
Home equity revolving lines of credit			1,251				1,508				(17.0	)%			1,531				1,527				1,178				6.2	%
Home equity loans 1st liens			1,846				1,857				(0.6	)%			1,867				1,674				1,656				11.5	%
Home equity loans junior liens			6,642				6,701				(0.9	)%			7,184				7,243				6,738				(1.4	)%
Home equity			9,739				10,066				(3.2	)%			10,582				10,444				9,572				1.7	%
Installment and credit cards			891				974				(8.5	)%			1,106				1,185				225				296.0	%
Residential mortgage			18,449				18,976				(2.8	)%			19,141				18,753				18,798				(1.9	)%
Total consumer			29,079				30,016				(3.1	)%			30,829				30,382				28,595				1.7	%
Total restructured loans (accruing)		$	88,817			$	98,216				(9.6	)%		$	104,603			$	114,381			$	116,924				(24.0	)%
Restructured loans in nonaccrual loans (not included above)		$	53,553			$	57,656				(7.1	)%		$	63,314			$	72,388			$	74,231				(27.9	)%
Loans Past Due 30-89 Days		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Commercial and industrial		$	1,717			$	14,747				(88.4	)%		$	3,947			$	2,519			$	4,126				(58.4	)%
Commercial real estate—owner occupied			1,849				10,628				(82.6	)%			2,675				6,323				5,342				(65.4	)%
Lease financing			—				—				N/M				—				556				567				(100.0	)%
Commercial and business lending			3,566				25,375				(85.9	)%			6,622				9,398				10,035				(64.5	)%
Commercial real estate—investor			2,215				1,208				83.4	%			15,869				2,994				7,188				(69.2	)%
Real estate construction			317				984				(67.8	)%			399				258				679				(53.3	)%
Commercial real estate lending			2,532				2,192				15.5	%			16,268				3,252				7,867				(67.8	)%
Total commercial			6,098				27,567				(77.9	)%			22,890				12,650				17,902				(65.9	)%
Home equity revolving lines of credit			7,150				6,725				6.3	%			6,739				6,986				5,344				33.8	%
Home equity loans 1st liens			953				1,800				(47.1	)%			1,503				1,685				1,469				(35.1	)%
Home equity loans junior liens			1,905				2,058				(7.4	)%			2,496				2,138				3,006				(36.6	)%
Home equity			10,008				10,583				(5.4	)%			10,738				10,809				9,819				1.9	%
Installment and credit cards			1,818				1,932				(5.9	)%			1,818				1,734				1,269				43.3	%
Residential mortgage			3,403				3,046				11.7	%			3,231				7,070				4,498				(24.3	)%
Total consumer			15,229				15,561				(2.1	)%			15,787				19,613				15,586				(2.3	)%
Total loans past due 30-89 days		$	21,327			$	43,128				(50.5	)%		$	38,677			$	32,263			$	33,488				(36.3	)%
Potential Problem Loans		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Commercial and industrial		$	138,403			$	108,522				27.5	%		$	133,416			$	187,251			$	109,027				26.9	%
Commercial real estate—owner occupied			43,114				48,695				(11.5	)%			49,008				57,757				64,785				(33.5	)%
Lease financing			2,009				2,709				(25.8	)%			3,787				2,280				3,065				(34.5	)%
Commercial and business lending			183,526				159,926				14.8	%			186,211				247,288				176,877				3.8	%
Commercial real estate—investor			26,026				24,043				8.2	%			28,474				31,903				34,790				(25.2	)%
Real estate construction			1,487				1,776				(16.3	)%			2,227				4,473				4,870				(69.5	)%
Commercial real estate lending			27,513				25,819				6.6	%			30,701				36,376				39,660				(30.6	)%
Total commercial			211,039				185,745				13.6	%			216,912				283,664				216,537				(2.5	)%
Home equity revolving lines of credit			247				204				21.1	%			224				277				310				(20.3	)%
Home equity loans junior liens			711				676				5.2	%			687				822				741				(4.0	)%
Home equity			958				880				8.9	%			911				1,099				1,051				(8.8	)%
Installment and credit cards			—				2				(100.0	)%			4				844				—				N/M
Residential mortgage			6,621				3,781				75.1	%			2,166				2,445				2,091				216.6	%
Total consumer			7,579				4,663				62.5	%			3,081				4,388				3,142				141.2	%
Total potential problem loans		$	218,618			$	190,408				14.8	%		$	219,993			$	288,052			$	219,679				(0.5	)%

N/M = Not meaningful.

 

Page 5

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Associated Banc-Corp

Net Interest Income Analysis—Taxable Equivalent Basis

Sequential Quarter

 

		Three months ended March 31, 2015												Three months ended December 31, 2014
(in thousands)		Average Balance				Interest Income /Expense				Average Yield /Rate				Average Balance				Interest Income /Expense				Average Yield /Rate
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending		$	6,993,169			$	55,915				3.24	%		$	6,720,893			$	59,197				3.50	%
Commercial real estate lending			4,102,733				36,403				3.60				4,066,143				37,122				3.62
Total commercial			11,095,902				92,318				3.37				10,787,036				96,319				3.54
Residential mortgage			4,663,849				36,885				3.17				4,490,075				36,228				3.23
Retail			2,055,364				23,668				4.64				2,110,144				24,942				4.71
Total loans			17,815,115				152,871				3.46				17,387,255				157,489				3.60
Investment securities (1)			5,754,747				37,159				2.58				5,697,598				36,658				2.57
Other short-term investments			578,164				1,692				1.18				407,644				1,821				1.78
Investments and other			6,332,911				38,851				2.45				6,105,242				38,479				2.52
Total earning assets			24,148,026			$	191,722				3.20				23,492,497			$	195,968				3.32
Other assets, net			2,458,899												2,388,268
Total assets		$	26,606,925											$	25,880,765
Interest-bearing liabilities:
Savings deposits		$	1,277,469			$	238				0.08	%		$	1,264,195			$	253				0.08	%
Interest-bearing demand deposits			3,203,727				1,050				0.13				3,142,537				1,220				0.15
Money market deposits			8,653,260				3,785				0.18				8,209,091				3,547				0.17
Time deposits			1,594,183				2,546				0.65				1,549,565				2,299				0.59
Total interest-bearing deposits			14,728,639				7,619				0.21				14,165,388				7,319				0.20
Federal funds purchased and securities sold under agreements to repurchase			585,498				231				0.16				600,969				218				0.14
Other short-term funding			119,240				81				0.27				464,866				156				0.13
Long-term funding			3,735,602				10,872				1.17				3,221,574				8,644				1.07
Total short and long-term funding			4,440,340				11,184				1.01				4,287,409				9,018				0.84
Total interest-bearing liabilities			19,168,979			$	18,803				0.39				18,452,797			$	16,337				0.35
Noninterest-bearing demand deposits			4,326,557												4,367,031
Other liabilities			266,660												228,600
Stockholders’ equity			2,844,729												2,832,337
Total liabilities and stockholders’ equity		$	26,606,925											$	25,880,765
Net interest income and rate spread						$	172,919				2.81	%						$	179,631				2.97	%
Net interest margin											2.89	%											3.04	%
Taxable equivalent adjustment						$	5,106											$	4,970

Net Interest Income Analysis—Taxable Equivalent Basis

Comparable Quarter

 

		Three months ended March 31, 2015												Three months ended March 31, 2014
(in thousands)		Average Balance				Interest Income /Expense				Average Yield /Rate				Average Balance				Interest Income /Expense				Average Yield /Rate
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending		$	6,993,169			$	55,915				3.24	%		$	6,131,185			$	51,681				3.42	%
Commercial real estate lending			4,102,733				36,403				3.60				3,907,363				35,591				3.69
Total commercial			11,095,902				92,318				3.37				10,038,548				87,272				3.52
Residential mortgage			4,663,849				36,885				3.17				3,926,734				32,664				3.33
Retail			2,055,364				23,668				4.64				2,199,335				24,413				4.48
Total loans			17,815,115				152,871				3.46				16,164,617				144,349				3.61
Investment securities (1)			5,754,747				37,159				2.58				5,450,066				36,922				2.71
Other short-term investments			578,164				1,692				1.18				277,820				1,449				2.09
Investments and other			6,332,911				38,851				2.45				5,727,886				38,371				2.68
Total earning assets			24,148,026			$	191,722				3.20				21,892,503			$	182,720				3.36
Other assets, net			2,458,899												2,320,710
Total assets		$	26,606,925											$	24,213,213
Interest-bearing liabilities:
Savings deposits		$	1,277,469			$	238				0.08	%		$	1,195,337			$	220				0.07	%
Interest-bearing demand deposits			3,203,727				1,050				0.13				2,796,247				823				0.12
Money market deposits			8,653,260				3,785				0.18				7,173,106				2,825				0.16
Time deposits			1,594,183				2,546				0.65				1,659,277				2,291				0.56
Total interest-bearing deposits			14,728,639				7,619				0.21				12,823,967				6,159				0.19
Federal funds purchased and securities sold under agreements to repurchase			585,498				231				0.16				805,187				305				0.15
Other short-term funding			119,240				81				0.27				328,516				116				0.14
Long-term funding			3,735,602				10,872				1.17				3,004,520				6,511				0.87
Total short and long-term funding			4,440,340				11,184				1.01				4,138,223				6,932				0.67
Total interest-bearing liabilities			19,168,979			$	18,803				0.39				16,962,190			$	13,091				0.31
Noninterest-bearing demand deposits			4,326,557												4,166,305
Other liabilities			266,660												195,950
Stockholders’ equity			2,844,729												2,888,768
Total liabilities and stockholders’ equity		$	26,606,925											$	24,213,213
Net interest income and rate spread						$	172,919				2.81	%						$	169,629				3.05	%
Net interest margin											2.89	%											3.12	%
Taxable equivalent adjustment						$	5,106											$	4,656

 

(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.

 

Page 6

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Associated Banc-Corp

Financial Summary and Comparison

 

Period End Loan Composition		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Commercial and industrial		$	6,140,420			$	5,905,902				4.0	%		$	5,603,899			$	5,616,205			$	5,222,141				17.6	%
Commercial real estate—owner occupied			1,003,885				1,007,937				(0.4	)%			1,014,335				1,070,463				1,098,089				(8.6	)%
Lease financing			49,496				51,529				(3.9	)%			52,600				51,873				52,500				(5.7	)%
Commercial and business lending			7,193,801				6,965,368				3.3	%			6,670,834				6,738,541				6,372,730				12.9	%
Commercial real estate—investor			3,086,980				3,056,485				1.0	%			3,043,361				2,990,732				3,001,219				2.9	%
Real estate construction			1,019,571				1,008,956				1.1	%			982,426				1,000,421				969,617				5.2	%
Commercial real estate lending			4,106,551				4,065,441				1.0	%			4,025,787				3,991,153				3,970,836				3.4	%
Total commercial			11,300,352				11,030,809				2.4	%			10,696,621				10,729,694				10,343,566				9.3	%
Home equity revolving lines of credit			879,827				887,779				(0.9	)%			880,435				866,042				856,679				2.7	%
Home equity loans 1st liens			549,667				584,131				(5.9	)%			619,774				659,598				705,835				(22.1	)%
Home equity loans junior liens			154,120				164,148				(6.1	)%			176,316				187,732				199,488				(22.7	)%
Home equity			1,583,614				1,636,058				(3.2	)%			1,676,525				1,713,372				1,762,002				(10.1	)%
Installment and credit cards			436,492				454,219				(3.9	)%			459,682				469,203				393,321				11.0	%
Residential mortgage			4,658,574				4,472,760				4.2	%			4,326,262				4,132,783				3,942,555				18.2	%
Total consumer			6,678,680				6,563,037				1.8	%			6,462,469				6,315,358				6,097,878				9.5	%
Total loans		$	17,979,032			$	17,593,846				2.2	%		$	17,159,090			$	17,045,052			$	16,441,444				9.4	%
Period End Deposit and Customer Funding Composition		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Noninterest-bearing demand		$	4,570,872			$	4,505,272				1.5	%		$	4,302,454			$	4,211,057			$	4,478,981				2.1	%
Savings			1,337,643				1,235,277				8.3	%			1,256,567				1,275,493				1,252,669				6.8	%
Interest-bearing demand			3,525,870				3,126,854				12.8	%			3,637,411				2,918,900				3,084,457				14.3	%
Money market			8,781,206				8,324,646				5.5	%			7,491,460				7,348,650				7,069,173				24.2	%
Brokered CDs			40,699				42,556				(4.4	)%			9,242				44,809				51,235				(20.6	)%
Other time			1,595,302				1,528,899				4.3	%			1,504,124				1,517,350				1,573,412				1.4	%
Total deposits			19,851,592				18,763,504				5.8	%			18,201,258				17,316,259				17,509,927				13.4	%
Customer repo sweeps			528,572				384,221				37.6	%			493,451				489,886				548,179				(3.6	)%
Total deposits and customer funding		$	20,380,164			$	19,147,725				6.4	%		$	18,694,709			$	17,806,145			$	18,058,106				12.9	%
Network transaction deposits included above in interest-bearing demand & money market		$	2,900,325			$	2,852,943				1.7	%		$	2,207,055			$	2,238,923			$	2,141,976				35.4	%
Brokered CDs			40,699				42,556				(4.4	)%			9,242				44,809				51,235				(20.6	)%
Total network and brokered funding			2,941,024				2,895,499				1.6	%			2,216,297				2,283,732				2,193,211				34.1	%
Net customer deposits and funding (1)		$	17,439,140			$	16,252,226				7.3	%		$	16,478,412			$	15,522,413			$	15,864,895				9.9	%

 

(1)	Total deposits and customer funding excluding total network and brokered funding.

 

Quarter Average Loan Composition		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Commercial and industrial		$	5,944,152			$	5,665,396				4.9	%		$	5,558,135			$	5,335,488			$	4,983,943				19.3	%
Commercial real estate—owner occupied			998,293				1,003,179				(0.5	)%			1,043,001				1,081,552				1,093,114				(8.7	)%
Lease financing			50,724				52,318				(3.0	)%			51,091				51,804				54,128				(6.3	)%
Commercial and business lending			6,993,169				6,720,893				4.1	%			6,652,227				6,468,844				6,131,185				14.1	%
Commercial real estate—investor			3,106,965				3,062,427				1.5	%			3,013,210				3,014,827				2,993,046				3.8	%
Real estate construction			995,768				1,003,716				(0.8	)%			1,006,076				953,021				914,317				8.9	%
Commercial real estate lending			4,102,733				4,066,143				0.9	%			4,019,286				3,967,848				3,907,363				5.0	%
Total commercial			11,095,902				10,787,036				2.9	%			10,671,513				10,436,692				10,038,548				10.5	%
Home equity revolving lines of credit			882,869				883,580				(0.1	)%			875,388				866,952				868,614				1.6	%
Home equity loans 1st liens			567,849				601,719				(5.6	)%			638,592				681,607				724,995				(21.7	)%
Home equity loans junior liens			159,378				169,845				(6.2	)%			181,880				193,727				203,984				(21.9	)%
Home equity			1,610,096				1,655,144				(2.7	)%			1,695,860				1,742,286				1,797,593				(10.4	)%
Installment and credit cards			445,268				455,000				(2.1	)%			464,467				389,794				401,742				10.8	%
Residential mortgage			4,663,849				4,490,075				3.9	%			4,309,121				4,077,617				3,926,734				18.8	%
Total consumer			6,719,213				6,600,219				1.8	%			6,469,448				6,209,697				6,126,069				9.7	%
Total loans		$	17,815,115			$	17,387,255				2.5	%		$	17,140,961			$	16,646,389			$	16,164,617				10.2	%
Quarter Average Deposit Composition		Mar 31, 2015				Dec 31, 2014				Mar 15 vs Dec 14 % Change				Sep 30, 2014				Jun 30, 2014				Mar 31, 2014				Mar 15 vs Mar 14 % Change
Noninterest-bearing demand		$	4,326,557			$	4,367,031				(0.9	)%		$	4,239,654			$	4,073,310			$	4,166,305				3.8	%
Savings			1,277,469				1,264,195				1.0	%			1,269,994				1,267,297				1,195,337				6.9	%
Interest-bearing demand			3,203,727				3,142,537				1.9	%			3,096,712				2,894,446				2,796,247				14.6	%
Money market			8,653,260				8,209,091				5.4	%			7,721,167				7,340,244				7,173,106				20.6	%
Time deposits			1,594,183				1,549,565				2.9	%			1,545,851				1,597,535				1,659,277				(3.9	)%
Total deposits		$	19,055,196			$	18,532,419				2.8	%		$	17,873,378			$	17,172,832			$	16,990,272				12.2	%

 

Page 7

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