Associated Banc-Corp Reports First Quarter 2024 Net Income Available to Common Equity of $78 Million, or $0.52 per Common Share
Results driven by balance sheet growth, margin expansion and continued execution of strategic initiatives
GREEN BAY, Wis., April 25, 2024 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $78 million, or $0.52 per common share, for the quarter ended March 31, 2024. These amounts compare to a loss of $94 million, or $(0.62) per common share, for the quarter ended December 31, 2023 and earnings of $100 million, or $0.66 per common share, for the quarter ended March 31, 2023.
"During the first quarter, we continued to make strong progress against our strategic plan," said President and CEO Andy Harmening. "We added talent in key areas, enhanced operational efficiency, and improved the customer experience through product and service enhancements. Here in April, our collective efforts were recognized when we were named #1 for Retail Banking Customer Satisfaction in the Upper Midwest Region by J.D. Power.1 Importantly, these efforts also contributed to the bottom line through balanced loan and deposit growth, net household growth, and expanding margins."
"As we look forward, macroeconomic question marks remain, but we feel well-positioned thanks to the stability of our markets, the resilience of our customer base, and the quarterly momentum from our initiatives. We're excited to share our progress over the remainder of the year."
First Quarter 2024 Highlights (all comparisons to Fourth Quarter 2023)
- Total period end commercial & business lending loans increased $161 million to $11.0 billion
- Total period end commercial real estate loans decreased $73 million to $7.3 billion
- Total period end consumer loans increased $190 million to $11.2 billion
- Total period end deposits increased $267 million to $33.7 billion
- Total period end core customer deposits2 increased $557 million to $28.0 billion
- Net interest income increased $4 million to $258 million
- Quarterly net interest margin increased 10 basis points to 2.79%
- Noninterest income increased $196 million to $65 million (increase primarily driven by one time items impacting 4Q 2023 results)
- Noninterest expense decreased $42 million to $198 million (decrease primarily driven by one time items impacting 4Q 2023 results)
- Provision for credit losses on loans increased $3 million to $24 million
- Net income available to common equity increased $172 million to $78 million (increase primarily driven by one time items impacting 4Q 2023 results)
1 For J.D. Power 2024 award information, visit jdpower.com/awards.
2 This is a non-GAAP financial measure. See financial tables for a reconciliation of non-GAAP financial measures to GAAP financial measures.
Loans
First quarter 2024 average total loans of $29.4 billion decreased 2%, or $583 million, from the prior quarter and increased 2%, or $523 million, from the same period last year. With respect to first quarter 2024 average balances by loan category:
- Commercial and business lending decreased $4 million from the prior quarter and increased $200 million from the same period last year to $10.8 billion.
- Commercial real estate lending decreased $8 million from the prior quarter and increased $139 million from the same period last year to $7.4 billion.
- Consumer lending decreased $572 million from the prior quarter and increased $184 million from the same period last year to $11.2 billion.
First quarter 2024 period end total loans of $29.5 billion increased 1%, or $278 million, from the prior quarter and increased 1%, or $287 million, from the same period last year. With respect to first quarter 2024 period end balances by loan category:
- Commercial and business lending increased $161 million from the prior quarter and increased $34 million from the same period last year to $11.0 billion.
- Commercial real estate lending decreased $73 million from the prior quarter and increased $81 million from the same period last year to $7.3 billion.
- Consumer lending increased $190 million from the prior quarter and increased $172 million from the same period last year to $11.2 billion.
In 2024, we continue to expect total loan growth of 4% to 6% on an end of period basis as compared to the year ended December 31, 2023.
Deposits
First quarter 2024 average deposits of $33.3 billion increased 3%, or $1.1 billion, from the prior quarter and increased 11%, or $3.4 billion, from the same period last year. With respect to first quarter 2024 average balances by deposit category:
- Noninterest-bearing demand deposits decreased $289 million from the prior quarter and decreased $1.5 billion from the same period last year to $5.9 billion.
- Savings increased $66 million from the prior quarter and increased $263 million from the same period last year to $4.9 billion.
- Interest-bearing demand deposits increased $334 million from the prior quarter and increased $676 million from the same period last year to $7.5 billion.
- Money market deposits decreased $5 million from the prior quarter and decreased $1.4 billion from the same period last year to $6.1 billion.
- Total time deposits increased $934 million from the prior quarter and increased $4.8 billion from the same period last year to $7.2 billion.
- Network transaction deposits increased $35 million from the prior quarter and increased $505 million from the same period last year to $1.7 billion.
First quarter 2024 period end deposits of $33.7 billion increased 1%, or $267 million, from the prior quarter and increased 11%, or $3.4 billion, from the same period last year. With respect to first quarter 2024 period end balances by deposit category:
- Noninterest-bearing demand deposits increased $134 million from the prior quarter and decreased $1.1 billion from the same period last year to $6.3 billion.
- Savings increased $289 million from the prior quarter and increased $394 million from the same period last year to $5.1 billion.
- Interest-bearing demand deposits decreased $97 million from the prior quarter and increased $1.8 billion from the same period last year to $8.7 billion.
- Money market deposits increased $391 million from the prior quarter and decreased $1.6 billion from the same period last year to $6.7 billion.
- Total time deposits decreased $450 million from the prior quarter and increased $3.9 billion from the same period last year to $6.9 billion.
- Network transaction deposits (included in money market and interest-bearing demand deposits) increased $227 million from the prior quarter and increased $519 million from the same period last year to $1.8 billion.
In 2024, we continue to expect core customer deposit growth of 3% to 5% on an end of period basis as compared to the year ended December 31, 2023.
Net Interest Income and Net Interest Margin
First quarter 2024 net interest income of $258 million increased $4 million, or 2%, from the prior quarter and decreased $16 million, or 6%, from the same period last year. The net interest margin increased to 2.79%, reflecting a 10 basis point increase from the prior quarter and a 28 basis point decrease from the same period last year.
- The average yield on total loans for the first quarter of 2024 increased 14 basis points from the prior quarter and increased 73 basis points from the same period last year to 6.22%.
- The average cost of total interest-bearing liabilities for the first quarter of 2024 remained flat compared to the prior quarter and increased 107 basis points from the same period last year to 3.55%.
- The net free funds benefit for the first quarter of 2024 decreased 3 basis points from the prior quarter and increased 9 basis points from the same period last year to 0.70%.
We continue to expect total net interest income growth of 2% to 4% in 2024.
Noninterest Income
First quarter 2024 total noninterest income of $65 million increased $196 million from the prior quarter (with the increase driven primarily by one time items impacting prior quarter results) and increased $3 million, or 5%, from the same period last year. With respect to first quarter 2024 noninterest income line items:
- Wealth management fees increased $1 million from the prior quarter and increased $2 million from the same period last year.
- Service charges and deposit account fees increased $2 million from the prior quarter and decreased $1 million from the same period last year.
- Capital markets, net decreased $5 million from the prior quarter and decreased $1 million from the same period last year.
- Investment securities gains (losses), net increased $63 million from the prior quarter and increased $4 million from the same period last year, driven primarily by a $65 million net loss on a sale of investments associated with a balance sheet repositioning recognized in the fourth quarter of 2023 and a $4 million gain on sale of Visa B shares recognized in the first quarter of 2024. As of March 31, 2024, we had no Visa B shares remaining.
After adjusting to exclude the impact of the mortgage and investment securities sales announced during the fourth quarter of 2023, we continue to expect total noninterest income to decrease by 0% to 2% in 2024.
Noninterest Expense
First quarter 2024 total noninterest expense of $198 million decreased $42 million, or 17%, from the prior quarter (with the decrease driven primarily by one time items impacting prior quarter results) and increased $10 million, or 5%, from the same period last year as we continued to invest in our strategic initiatives. With respect to first quarter 2024 noninterest expense line items:
- Personnel expense decreased $1 million from the prior quarter and increased $3 million from the same period last year.
- Technology expense decreased $2 million from the prior quarter and increased $3 million from the same period last year.
- FDIC assessment expense decreased $28 million from the prior quarter and increased $7 million from the same period last year. These results were driven primarily by a $31 million special assessment recognized in the fourth quarter of 2023 and an $8 million special assessment recognized in the first quarter of 2024.
After adjusting to exclude the impact of the $31 million FDIC special assessment finalized during the fourth quarter of 2023 and the $8 million FDIC special assessment finalized during the first quarter of 2024, we expect total noninterest expense to grow by 2% to 3% in 2024.
Taxes
The first quarter 2024 tax expense was $20 million compared to $47 million of tax benefit in the prior quarter and $27 million of tax expense in the same period last year. The effective tax rate for the first quarter of 2024 was 19.8% compared to an effective tax rate of 20.9% in the same period last year.
In 2024, we continue to expect the annual effective tax rate to be between 19% and 21%, assuming no change in the corporate tax rate.
Credit
The first quarter 2024 provision for credit losses on loans was $24 million, compared to a provision of $21 million in the prior quarter and a provision of $18 million in the same period last year. With respect to first quarter 2024 credit quality:
- Nonaccrual loans of $178 million increased $29 million from the prior quarter and increased $61 million from the same period last year. The nonaccrual loans to total loans ratio was 0.60% in the first quarter, up from 0.51% in the prior quarter and up from 0.40% in the same period last year.
- First quarter 2024 net charge offs of $22 million increased compared to net charge offs of $16 million in the prior quarter and increased compared to net charge offs of $3 million in the same period last year.
- The allowance for credit losses on loans (ACLL) of $388 million increased $2 million compared to the prior quarter and increased $22 million compared to the same period last year. The ACLL to total loans ratio was 1.31% in the first quarter, down from 1.32% in the prior quarter and up from 1.25% in the same period last year.
In 2024, we continue to expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.
Capital
The Company's capital position remains strong, with a CET1 capital ratio of 9.43% at March 31, 2024. The Company's capital ratios continue to be in excess of the Basel III "well-capitalized" regulatory benchmarks on a fully phased in basis.
FIRST QUARTER 2024 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 25, 2024. Interested parties can access the live webcast of the call through the Investor Relations section of the Company's website, http://investor.associatedbank.com. Parties may also dial into the call at 877-407-8037 (domestic) or 201-689-8037 (international) and request the Associated Banc-Corp first quarter 2024 earnings call. The first quarter 2024 financial tables with an accompanying slide presentation will be available on the Company's website just prior to the call. An audio archive of the webcast will be available on the Company's website approximately fifteen minutes after the call is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $41 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from nearly 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota. The Company also operates loan production offices in Indiana, Michigan, Missouri, New York, 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," "target," "outlook," "project," "guidance," 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 and related materials may contain references to measures which are not defined in generally accepted accounting principles ("GAAP"). Information concerning these non-GAAP financial measures can be found in the financial tables. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
Associated Banc-Corp Consolidated Balance Sheets (Unaudited) |
|||||||
($ in thousands) |
March 31, 2024 |
December 31, 2023 |
Seql Qtr $ Change |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
Comp Qtr $ Change |
Assets |
|||||||
Cash and due from banks |
$ 429,859 |
$ 484,384 |
$ (54,525) |
$ 388,694 |
$ 407,620 |
$ 311,269 |
$ 118,590 |
Interest-bearing deposits in other financial institutions |
420,114 |
425,089 |
(4,975) |
323,130 |
190,881 |
511,116 |
(91,002) |
Federal funds sold and securities purchased under agreements to resell |
1,610 |
14,350 |
(12,740) |
965 |
31,160 |
455 |
1,155 |
Investment securities available for sale, at fair value |
3,724,148 |
3,600,892 |
123,256 |
3,491,679 |
3,504,777 |
3,381,607 |
342,541 |
Investment securities held to maturity, net, at amortized cost |
3,832,967 |
3,860,160 |
(27,193) |
3,900,415 |
3,938,877 |
3,967,058 |
(134,091) |
Equity securities |
19,571 |
41,651 |
(22,080) |
35,937 |
30,883 |
30,514 |
(10,943) |
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost |
173,968 |
229,171 |
(55,203) |
268,698 |
271,637 |
331,420 |
(157,452) |
Residential loans held for sale |
52,414 |
33,011 |
19,403 |
54,790 |
38,083 |
35,742 |
16,672 |
Commercial loans held for sale |
— |
90,303 |
(90,303) |
— |
15,000 |
33,490 |
(33,490) |
Loans |
29,494,263 |
29,216,218 |
278,045 |
30,193,187 |
29,848,904 |
29,207,072 |
287,191 |
Allowance for loan losses |
(356,006) |
(351,094) |
(4,912) |
(345,795) |
(338,750) |
(326,432) |
(29,574) |
Loans, net |
29,138,257 |
28,865,124 |
273,133 |
29,847,392 |
29,510,153 |
28,880,640 |
257,617 |
Tax credit and other investments |
255,252 |
258,067 |
(2,815) |
256,905 |
263,583 |
269,269 |
(14,017) |
Premises and equipment, net |
367,618 |
372,978 |
(5,360) |
373,017 |
374,866 |
375,540 |
(7,922) |
Bank and corporate owned life insurance |
685,089 |
682,649 |
2,440 |
679,775 |
678,578 |
677,328 |
7,761 |
Goodwill |
1,104,992 |
1,104,992 |
— |
1,104,992 |
1,104,992 |
1,104,992 |
— |
Other intangible assets, net |
38,268 |
40,471 |
(2,203) |
42,674 |
44,877 |
47,079 |
(8,811) |
Mortgage servicing rights, net |
85,226 |
84,390 |
836 |
89,131 |
80,449 |
74,479 |
10,747 |
Interest receivable |
167,092 |
169,569 |
(2,477) |
171,119 |
159,185 |
152,404 |
14,688 |
Other assets |
640,638 |
658,604 |
(17,966) |
608,068 |
573,870 |
518,115 |
122,523 |
Total assets |
$ 41,137,084 |
$ 41,015,855 |
$ 121,229 |
$ 41,637,381 |
$ 41,219,473 |
$ 40,702,519 |
$ 434,565 |
Liabilities and stockholders' equity |
|||||||
Noninterest-bearing demand deposits |
$ 6,254,135 |
$ 6,119,956 |
$ 134,179 |
$ 6,422,994 |
$ 6,565,666 |
$ 7,328,689 |
$ (1,074,554) |
Interest-bearing deposits |
27,459,023 |
27,326,093 |
132,930 |
25,700,332 |
25,448,743 |
23,003,134 |
4,455,889 |
Total deposits |
33,713,158 |
33,446,049 |
267,109 |
32,123,326 |
32,014,409 |
30,331,824 |
3,381,334 |
Short-term funding |
765,671 |
326,780 |
438,891 |
451,644 |
341,253 |
226,608 |
539,063 |
FHLB advances |
1,333,411 |
1,940,194 |
(606,783) |
3,733,041 |
3,630,747 |
4,986,138 |
(3,652,727) |
Other long-term funding |
536,055 |
541,269 |
(5,214) |
529,459 |
534,273 |
544,103 |
(8,048) |
Allowance for unfunded commitments |
31,776 |
34,776 |
(3,000) |
34,776 |
38,276 |
39,776 |
(8,000) |
Accrued expenses and other liabilities |
588,341 |
552,814 |
35,527 |
637,491 |
537,640 |
448,407 |
139,934 |
Total liabilities |
36,968,412 |
36,841,882 |
126,530 |
37,509,738 |
37,096,599 |
36,576,856 |
391,556 |
Stockholders' equity |
|||||||
Preferred equity |
194,112 |
194,112 |
— |
194,112 |
194,112 |
194,112 |
— |
Common equity |
3,974,561 |
3,979,861 |
(5,300) |
3,933,531 |
3,928,762 |
3,931,551 |
43,010 |
Total stockholders' equity |
4,168,673 |
4,173,973 |
(5,300) |
4,127,643 |
4,122,874 |
4,125,663 |
43,010 |
Total liabilities and stockholders' equity |
$ 41,137,084 |
$ 41,015,855 |
$ 121,229 |
$ 41,637,381 |
$ 41,219,473 |
$ 40,702,519 |
$ 434,565 |
Numbers may not sum due to rounding. |
Associated Banc-Corp |
|||||||||
($ in thousands, except per share data) |
Seql Qtr |
Comp Qtr |
|||||||
1Q24 |
4Q23 |
$ Change |
% Change |
3Q23 |
2Q23 |
1Q23 |
$ Change |
% Change |
|
Interest income |
|||||||||
Interest and fees on loans |
$ 454,472 |
$ 457,868 |
$ (3,396) |
(1) % |
$ 447,912 |
$ 423,307 |
$ 391,320 |
$ 63,152 |
16 % |
Interest and dividends on investment securities |
|||||||||
Taxable |
46,548 |
41,809 |
4,739 |
11 % |
38,210 |
35,845 |
30,142 |
16,406 |
54 % |
Tax-exempt |
14,774 |
15,273 |
(499) |
(3) % |
15,941 |
15,994 |
16,025 |
(1,251) |
(8) % |
Other interest |
7,595 |
10,418 |
(2,823) |
(27) % |
6,575 |
6,086 |
5,329 |
2,266 |
43 % |
Total interest income |
523,388 |
525,367 |
(1,979) |
— % |
508,637 |
481,231 |
442,817 |
80,571 |
18 % |
Interest expense |
|||||||||
Interest on deposits |
226,231 |
208,875 |
17,356 |
8 % |
193,131 |
162,196 |
109,422 |
116,809 |
107 % |
Interest on federal funds purchased and securities sold under agreements to repurchase |
2,863 |
3,734 |
(871) |
(23) % |
3,100 |
2,261 |
3,143 |
(280) |
(9) % |
Interest on other short-term funding |
4,708 |
— |
4,708 |
N/M |
— |
— |
— |
4,708 |
N/M |
Interest on FHLB advances |
21,671 |
49,171 |
(27,500) |
(56) % |
48,143 |
49,261 |
49,960 |
(28,289) |
(57) % |
Interest on long-term funding |
10,058 |
10,185 |
(127) |
(1) % |
10,019 |
9,596 |
6,281 |
3,777 |
60 % |
Total interest expense |
265,530 |
271,965 |
(6,435) |
(2) % |
254,394 |
223,314 |
168,807 |
96,723 |
57 % |
Net interest income |
257,858 |
253,403 |
4,455 |
2 % |
254,244 |
257,917 |
274,010 |
(16,152) |
(6) % |
Provision for credit losses |
24,001 |
21,007 |
2,994 |
14 % |
21,943 |
22,100 |
17,971 |
6,030 |
34 % |
Net interest income after provision for credit losses |
233,857 |
232,395 |
1,462 |
1 % |
232,301 |
235,817 |
256,039 |
(22,182) |
(9) % |
Noninterest income |
|||||||||
Wealth management fees |
21,694 |
21,003 |
691 |
3 % |
20,828 |
20,483 |
20,189 |
1,505 |
7 % |
Service charges and deposit account fees |
12,439 |
10,815 |
1,624 |
15 % |
12,864 |
12,372 |
12,994 |
(555) |
(4) % |
Card-based fees |
11,267 |
11,528 |
(261) |
(2) % |
11,510 |
11,396 |
10,586 |
681 |
6 % |
Other fee-based revenue |
4,402 |
4,019 |
383 |
10 % |
4,509 |
4,465 |
4,276 |
126 |
3 % |
Capital markets, net |
4,050 |
9,106 |
(5,056) |
(56) % |
5,368 |
5,093 |
5,083 |
(1,033) |
(20) % |
Mortgage banking, net |
2,662 |
1,615 |
1,047 |
65 % |
6,501 |
7,768 |
3,545 |
(883) |
(25) % |
Loss on mortgage portfolio sale |
— |
(136,239) |
136,239 |
(100) % |
— |
— |
— |
— |
N/M |
Bank and corporate owned life insurance |
2,570 |
3,383 |
(813) |
(24) % |
2,047 |
2,172 |
2,664 |
(94) |
(4) % |
Asset gains (losses), net |
(306) |
(136) |
(170) |
125 % |
625 |
(299) |
263 |
(569) |
N/M |
Investment securities gains (losses), net |
3,879 |
(58,958) |
62,837 |
N/M |
(11) |
14 |
51 |
3,828 |
N/M |
Other |
2,327 |
2,850 |
(523) |
(18) % |
2,339 |
2,080 |
2,422 |
(95) |
(4) % |
Total noninterest income (loss) |
64,985 |
(131,013) |
195,998 |
N/M |
66,579 |
65,543 |
62,073 |
2,912 |
5 % |
Noninterest expense |
|||||||||
Personnel |
119,395 |
120,686 |
(1,291) |
(1) % |
117,159 |
114,089 |
116,420 |
2,975 |
3 % |
Technology |
26,200 |
28,027 |
(1,827) |
(7) % |
26,172 |
24,220 |
23,598 |
2,602 |
11 % |
Occupancy |
13,633 |
14,429 |
(796) |
(6) % |
14,125 |
13,587 |
15,063 |
(1,430) |
(9) % |
Business development and advertising |
6,517 |
8,350 |
(1,833) |
(22) % |
7,100 |
7,106 |
5,849 |
668 |
11 % |
Equipment |
4,599 |
4,742 |
(143) |
(3) % |
5,016 |
4,975 |
4,930 |
(331) |
(7) % |
Legal and professional |
4,672 |
6,762 |
(2,090) |
(31) % |
4,461 |
4,831 |
3,857 |
815 |
21 % |
Loan and foreclosure costs |
1,979 |
585 |
1,394 |
N/M |
2,049 |
1,635 |
1,138 |
841 |
74 % |
FDIC assessment |
13,946 |
41,497 |
(27,551) |
(66) % |
9,150 |
9,550 |
6,875 |
7,071 |
103 % |
Other intangible amortization |
2,203 |
2,203 |
— |
— % |
2,203 |
2,203 |
2,203 |
— |
— % |
Other |
4,513 |
12,110 |
(7,597) |
(63) % |
8,771 |
8,476 |
7,479 |
(2,966) |
(40) % |
Total noninterest expense |
197,657 |
239,391 |
(41,734) |
(17) % |
196,205 |
190,673 |
187,412 |
10,245 |
5 % |
Income (loss) before income taxes |
101,185 |
(138,009) |
239,194 |
N/M |
102,674 |
110,687 |
130,700 |
(29,515) |
(23) % |
Income tax expense (benefit) |
20,016 |
(47,202) |
67,218 |
N/M |
19,426 |
23,533 |
27,340 |
(7,324) |
(27) % |
Net income (loss) |
81,169 |
(90,806) |
171,975 |
N/M |
83,248 |
87,154 |
103,360 |
(22,191) |
(21) % |
Preferred stock dividends |
2,875 |
2,875 |
— |
— % |
2,875 |
2,875 |
2,875 |
— |
— % |
Net income (loss) available to common equity |
$ 78,294 |
$ (93,681) |
$ 171,975 |
N/M |
$ 80,373 |
$ 84,279 |
$ 100,485 |
$ (22,191) |
(22) % |
Earnings (loss) per common share |
|||||||||
Basic |
$ 0.52 |
$ (0.63) |
$ 1.15 |
N/M |
$ 0.53 |
$ 0.56 |
$ 0.67 |
$ (0.15) |
(22) % |
Diluted |
$ 0.52 |
$ (0.62) |
$ 1.14 |
N/M |
$ 0.53 |
$ 0.56 |
$ 0.66 |
$ (0.14) |
(21) % |
Average common shares outstanding |
|||||||||
Basic |
149,855 |
150,085 |
(230) |
— % |
150,035 |
149,986 |
149,763 |
92 |
— % |
Diluted |
151,292 |
151,007 |
285 |
— % |
151,014 |
150,870 |
151,128 |
164 |
— % |
N/M = Not meaningful |
Numbers may not sum due to rounding. |
Associated Banc-Corp Selected Quarterly Information |
|||||
($ in millions except per share data; shares repurchased and outstanding in thousands) |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
1Q23 |
Per common share data |
|||||
Dividends |
$ 0.22 |
$ 0.22 |
$ 0.21 |
$ 0.21 |
$ 0.21 |
Market value: |
|||||
High |
22.00 |
21.79 |
19.21 |
18.45 |
24.18 |
Low |
19.73 |
15.45 |
16.22 |
14.48 |
17.66 |
Close |
21.51 |
21.39 |
17.11 |
16.23 |
17.98 |
Book value / share |
26.37 |
26.35 |
26.06 |
26.03 |
26.06 |
Tangible book value / share |
18.78 |
18.77 |
18.46 |
18.41 |
18.42 |
Performance ratios (annualized) |
|||||
Return on average assets |
0.80 % |
(0.87) % |
0.80 % |
0.86 % |
1.06 % |
Noninterest expense / average assets |
1.95 % |
2.30 % |
1.90 % |
1.89 % |
1.92 % |
Effective tax rate |
19.78 % |
N/M |
18.92 % |
21.26 % |
20.92 % |
Dividend payout ratio(a) |
42.31 % |
N/M |
39.62 % |
37.50 % |
31.34 % |
Net interest margin |
2.79 % |
2.69 % |
2.71 % |
2.80 % |
3.07 % |
Selected trend information |
|||||
Average full time equivalent employees(b) |
4,070 |
4,130 |
4,220 |
4,227 |
4,219 |
Branch count |
188 |
196 |
202 |
202 |
202 |
Assets under management, at market value(c) |
$ 14,171 |
$ 13,545 |
$ 12,543 |
$ 12,995 |
$ 12,412 |
Mortgage loans originated for sale during period |
$ 105 |
$ 112 |
$ 115 |
$ 99 |
$ 69 |
Mortgage loan settlements during period(d) |
$ 91 |
$ 957 |
$ 103 |
$ 97 |
$ 55 |
Mortgage portfolio loans transferred to held for sale during period(d) |
$ — |
$ 969 |
$ — |
$ — |
$ — |
Mortgage portfolio serviced for others(d) |
$ 6,349 |
$ 7,364 |
$ 6,452 |
$ 6,525 |
$ 6,612 |
Mortgage servicing rights, net / mortgage portfolio serviced for others(d) |
1.34 % |
1.15 % |
1.38 % |
1.23 % |
1.13 % |
Shares repurchased during period(e) |
900 |
— |
— |
— |
— |
Shares outstanding, end of period |
150,739 |
151,037 |
150,951 |
150,919 |
150,886 |
Selected quarterly ratios |
|||||
Loans / deposits |
87.49 % |
87.35 % |
93.99 % |
93.24 % |
96.29 % |
Stockholders' equity / assets |
10.13 % |
10.18 % |
9.91 % |
10.00 % |
10.14 % |
Risk-based capital(f)(g) |
|||||
Total risk-weighted assets |
$ 32,753 |
$ 32,733 |
$ 33,497 |
$ 33,144 |
$ 32,646 |
Common equity Tier 1 |
$ 3,088 |
$ 3,075 |
$ 3,197 |
$ 3,143 |
$ 3,086 |
Common equity Tier 1 capital ratio |
9.43 % |
9.39 % |
9.55 % |
9.48 % |
9.45 % |
Tier 1 capital ratio |
10.02 % |
9.99 % |
10.12 % |
10.07 % |
10.05 % |
Total capital ratio |
12.08 % |
12.21 % |
12.25 % |
12.22 % |
12.22 % |
Tier 1 leverage ratio |
8.21 % |
8.06 % |
8.42 % |
8.40 % |
8.46 % |
N/M = Not meaningful |
|
Numbers may not sum due to rounding. |
|
(a) |
Ratio is based upon basic earnings per common share. |
(b) |
Average full time equivalent employees without overtime. |
(c) |
Excludes assets held in brokerage accounts. |
(d) |
During the fourth quarter of 2023, the Corporation transferred $969 million of residential mortgages into held for sale and subsequently sold them for $844 million. After sale, the servicing was retained for a short period until full servicing was transferred to the purchaser in January 2024. |
(e) |
Does not include repurchases related to tax withholding on equity compensation. |
(f) |
The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. |
(g) |
March 31, 2024 data is estimated. |
Associated Banc-Corp Selected Asset Quality Information |
|||||||
($ in thousands) |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % |
Allowance for loan losses |
|||||||
Balance at beginning of period |
$ 351,094 |
$ 345,795 |
2 % |
$ 338,750 |
$ 326,432 |
$ 312,720 |
12 % |
Provision for loan losses |
27,000 |
21,000 |
29 % |
25,500 |
23,500 |
17,000 |
59 % |
Charge offs |
(24,018) |
(17,878) |
34 % |
(20,535) |
(14,855) |
(5,501) |
N/M |
Recoveries |
1,930 |
2,177 |
(11) % |
2,079 |
3,674 |
2,212 |
(13) % |
Net (charge offs) recoveries |
(22,088) |
(15,701) |
41 % |
(18,455) |
(11,181) |
(3,289) |
N/M |
Balance at end of period |
$ 356,006 |
$ 351,094 |
1 % |
$ 345,795 |
$ 338,750 |
$ 326,432 |
9 % |
Allowance for unfunded commitments |
|||||||
Balance at beginning of period |
$ 34,776 |
$ 34,776 |
— % |
$ 38,276 |
$ 39,776 |
$ 38,776 |
(10) % |
Provision for unfunded commitments |
(3,000) |
— |
N/M |
(3,500) |
(1,500) |
1,000 |
N/M |
Balance at end of period |
$ 31,776 |
$ 34,776 |
(9) % |
$ 34,776 |
$ 38,276 |
$ 39,776 |
(20) % |
Allowance for credit losses on loans (ACLL) |
$ 387,782 |
$ 385,870 |
— % |
$ 380,571 |
$ 377,027 |
$ 366,208 |
6 % |
Provision for credit losses on loans |
$ 24,000 |
$ 21,000 |
14 % |
$ 22,000 |
$ 22,000 |
$ 18,000 |
33 % |
($ in thousands) |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % Change |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % Change |
Net (charge offs) recoveries |
|||||||
Commercial and industrial |
$ (18,638) |
$ (13,178) |
41 % |
$ (16,558) |
$ (11,177) |
$ (1,759) |
N/M |
Commercial real estate—owner occupied |
2 |
(22) |
N/M |
2 |
3 |
3 |
(33) % |
Commercial and business lending |
(18,636) |
(13,200) |
41 % |
(16,556) |
(11,174) |
(1,756) |
N/M |
Commercial real estate—investor |
— |
216 |
(100) % |
272 |
2,276 |
— |
N/M |
Real estate construction |
30 |
38 |
(21) % |
18 |
(18) |
18 |
67 % |
Commercial real estate lending |
30 |
253 |
(88) % |
290 |
2,257 |
18 |
67 % |
Total commercial |
(18,606) |
(12,947) |
44 % |
(16,266) |
(8,917) |
(1,738) |
N/M |
Residential mortgage |
(62) |
(53) |
17 % |
(22) |
(283) |
(53) |
17 % |
Auto finance |
(2,094) |
(1,436) |
46 % |
(1,269) |
(1,048) |
(957) |
119 % |
Home equity |
211 |
185 |
14 % |
128 |
183 |
340 |
(38) % |
Other consumer |
(1,537) |
(1,450) |
6 % |
(1,027) |
(1,117) |
(881) |
74 % |
Total consumer |
(3,482) |
(2,754) |
26 % |
(2,189) |
(2,264) |
(1,550) |
125 % |
Total net (charge offs) recoveries |
$ (22,088) |
$ (15,701) |
41 % |
$ (18,455) |
$ (11,181) |
$ (3,289) |
N/M |
(In basis points) |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
||
Net (charge offs) recoveries to average loans (annualized) |
|||||||
Commercial and industrial |
(77) |
(54) |
(66) |
(46) |
(7) |
||
Commercial real estate—owner occupied |
— |
(1) |
— |
— |
— |
||
Commercial and business lending |
(69) |
(48) |
(60) |
(41) |
(7) |
||
Commercial real estate—investor |
— |
2 |
2 |
18 |
— |
||
Real estate construction |
1 |
1 |
— |
— |
— |
||
Commercial real estate lending |
— |
1 |
2 |
12 |
— |
||
Total commercial |
(41) |
(28) |
(35) |
(20) |
(4) |
||
Residential mortgage |
— |
— |
— |
(1) |
— |
||
Auto finance |
(35) |
(27) |
(27) |
(25) |
(26) |
||
Home equity |
14 |
12 |
8 |
12 |
22 |
||
Other consumer |
(232) |
(208) |
(148) |
(163) |
(125) |
||
Total consumer |
(13) |
(9) |
(7) |
(8) |
(6) |
||
Total net (charge offs) recoveries |
(30) |
(21) |
(25) |
(15) |
(5) |
||
($ in thousands) |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % Change |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % Change |
Credit quality |
|||||||
Nonaccrual loans |
$ 178,346 |
$ 148,997 |
20 % |
$ 168,558 |
$ 131,278 |
$ 117,569 |
52 % |
Other real estate owned (OREO) |
8,437 |
10,506 |
(20) % |
8,452 |
7,575 |
15,184 |
(44) % |
Repossessed assets |
$ 1,241 |
$ 919 |
35 % |
$ 658 |
$ 348 |
$ 92 |
N/M |
Total nonperforming assets |
$ 188,025 |
$ 160,421 |
17 % |
$ 177,668 |
$ 139,201 |
$ 132,845 |
42 % |
Loans 90 or more days past due and still accruing |
$ 2,417 |
$ 21,689 |
(89) % |
$ 2,156 |
$ 1,726 |
$ 1,703 |
42 % |
Allowance for credit losses on loans to total loans |
1.31 % |
1.32 % |
1.26 % |
1.26 % |
1.25 % |
||
Allowance for credit losses on loans to nonaccrual loans |
217.43 % |
258.98 % |
225.78 % |
287.20 % |
311.48 % |
||
Nonaccrual loans to total loans |
0.60 % |
0.51 % |
0.56 % |
0.44 % |
0.40 % |
||
Nonperforming assets to total loans plus OREO and repossessed assets |
0.64 % |
0.55 % |
0.59 % |
0.47 % |
0.45 % |
||
Nonperforming assets to total assets |
0.46 % |
0.39 % |
0.43 % |
0.34 % |
0.33 % |
||
Annualized year-to-date net charge offs (recoveries) to year-to-date average loans |
0.30 % |
0.16 % |
0.15 % |
0.10 % |
0.05 % |
||
Associated Banc-Corp |
|||||||
($ in thousands) |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % |
Nonaccrual loans |
|||||||
Commercial and industrial |
$ 72,243 |
$ 62,022 |
16 % |
$ 74,812 |
$ 34,907 |
$ 22,735 |
N/M |
Commercial real estate—owner occupied |
2,090 |
1,394 |
50 % |
3,936 |
1,444 |
1,478 |
41 % |
Commercial and business lending |
74,333 |
63,416 |
17 % |
78,748 |
36,352 |
24,213 |
N/M |
Commercial real estate—investor |
18,697 |
— |
N/M |
10,882 |
22,068 |
25,122 |
(26) % |
Real estate construction |
18 |
6 |
200 % |
103 |
125 |
178 |
(90) % |
Commercial real estate lending |
18,715 |
6 |
N/M |
10,985 |
22,193 |
25,300 |
(26) % |
Total commercial |
93,047 |
63,422 |
47 % |
89,732 |
58,544 |
49,513 |
88 % |
Residential mortgage |
69,954 |
71,142 |
(2) % |
66,153 |
61,718 |
58,274 |
20 % |
Auto finance |
7,158 |
5,797 |
23 % |
4,533 |
3,065 |
2,436 |
194 % |
Home equity |
8,100 |
8,508 |
(5) % |
7,917 |
7,788 |
7,246 |
12 % |
Other consumer |
87 |
128 |
(32) % |
222 |
163 |
100 |
(13) % |
Total consumer |
85,299 |
85,574 |
— % |
78,826 |
72,733 |
68,056 |
25 % |
Total nonaccrual loans |
$ 178,346 |
$ 148,997 |
20 % |
$ 168,558 |
$ 131,278 |
$ 117,569 |
52 % |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % |
|
Restructured loans (accruing)(a) |
|||||||
Commercial and industrial |
$ 377 |
$ 306 |
23 % |
$ 234 |
$ 168 |
$ 47 |
N/M |
Commercial and business lending |
377 |
306 |
23 % |
234 |
168 |
47 |
N/M |
Commercial real estate—investor |
— |
— |
N/M |
— |
— |
— |
N/M |
Real estate construction |
— |
— |
N/M |
— |
— |
— |
N/M |
Commercial real estate lending |
— |
— |
N/M |
— |
— |
— |
N/M |
Total commercial |
377 |
306 |
23 % |
234 |
168 |
47 |
N/M |
Residential mortgage |
345 |
405 |
(15) % |
207 |
126 |
126 |
174 % |
Auto finance |
66 |
255 |
(74) % |
169 |
80 |
61 |
8 % |
Home equity |
182 |
305 |
(40) % |
236 |
78 |
31 |
N/M |
Other consumer |
1,487 |
1,449 |
3 % |
1,243 |
988 |
498 |
199 % |
Total consumer |
2,080 |
2,414 |
(14) % |
1,855 |
1,271 |
716 |
191 % |
Total restructured loans (accruing) |
$ 2,457 |
$ 2,719 |
(10) % |
$ 2,089 |
$ 1,439 |
$ 763 |
N/M |
Nonaccrual restructured loans (included in nonaccrual loans) |
$ 1,141 |
$ 805 |
42 % |
$ 961 |
$ 796 |
$ 341 |
N/M |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % |
|
Accruing loans 30-89 days past due |
|||||||
Commercial and industrial |
$ 521 |
$ 5,565 |
(91) % |
$ 1,507 |
$ 12,005 |
$ 4,239 |
(88) % |
Commercial real estate—owner occupied |
— |
358 |
(100) % |
1,877 |
1,484 |
2,955 |
(100) % |
Commercial and business lending |
521 |
5,923 |
(91) % |
3,384 |
13,489 |
7,195 |
(93) % |
Commercial real estate—investor |
19,164 |
18,697 |
2 % |
10,121 |
— |
— |
N/M |
Real estate construction |
1,260 |
— |
N/M |
10 |
76 |
— |
N/M |
Commercial real estate lending |
20,424 |
18,697 |
9 % |
10,131 |
76 |
— |
N/M |
Total commercial |
20,945 |
24,619 |
(15) % |
13,515 |
13,565 |
7,195 |
191 % |
Residential mortgage |
9,903 |
13,446 |
(26) % |
11,652 |
8,961 |
7,626 |
30 % |
Auto finance |
12,521 |
17,386 |
(28) % |
16,688 |
11,429 |
8,640 |
45 % |
Home equity |
2,819 |
4,208 |
(33) % |
3,687 |
4,030 |
4,113 |
(31) % |
Other consumer |
2,260 |
2,166 |
4 % |
1,880 |
2,025 |
1,723 |
31 % |
Total consumer |
27,503 |
37,205 |
(26) % |
33,908 |
26,444 |
22,102 |
24 % |
Total accruing loans 30-89 days past due |
$ 48,448 |
$ 61,825 |
(22) % |
$ 47,422 |
$ 40,008 |
$ 29,297 |
65 % |
N/M = Not meaningful |
|
Numbers may not sum due to rounding. |
|
(a) |
Based on ASU 2022-02 which was adopted prospectively in 1Q23. |
Associated Banc-Corp |
|||||||||
Three Months Ended |
|||||||||
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|||||||
($ in thousands) |
Average Balance |
Interest Income /Expense |
Average |
Average Balance |
Interest Income /Expense |
Average |
Average Balance |
Interest Income /Expense |
Average |
Assets |
|||||||||
Earning assets |
|||||||||
Loans (a) (b) (c) |
|||||||||
Commercial and business lending |
$ 10,816,255 |
$ 194,090 |
7.22 % |
$ 10,820,214 |
$ 193,808 |
7.11 % |
$ 10,616,026 |
$ 167,174 |
6.39 % |
Commercial real estate lending |
7,389,962 |
138,850 |
7.56 % |
7,397,809 |
138,437 |
7.42 % |
7,251,193 |
119,087 |
6.66 % |
Total commercial |
18,206,217 |
332,940 |
7.35 % |
18,218,024 |
332,245 |
7.24 % |
17,867,219 |
286,262 |
6.50 % |
Residential mortgage |
7,896,956 |
68,787 |
3.48 % |
8,691,258 |
76,035 |
3.50 % |
8,584,528 |
70,711 |
3.30 % |
Auto finance |
2,373,720 |
32,603 |
5.52 % |
2,138,536 |
29,221 |
5.42 % |
1,490,115 |
16,458 |
4.48 % |
Other retail |
892,128 |
20,661 |
9.28 % |
904,618 |
21,026 |
9.27 % |
903,956 |
18,494 |
8.23 % |
Total loans |
29,369,022 |
454,991 |
6.22 % |
29,952,435 |
458,527 |
6.08 % |
28,845,818 |
391,925 |
5.49 % |
Investment securities |
|||||||||
Taxable |
5,517,023 |
46,727 |
3.39 % |
5,344,578 |
41,809 |
3.13 % |
4,912,416 |
30,142 |
2.45 % |
Tax-exempt(a) |
2,133,352 |
18,024 |
3.38 % |
2,209,662 |
19,244 |
3.48 % |
2,329,519 |
20,192 |
3.47 % |
Other short-term investments |
576,782 |
8,311 |
5.80 % |
767,256 |
10,418 |
5.39 % |
493,061 |
5,329 |
4.37 % |
Investments and other |
8,227,158 |
73,062 |
3.55 % |
8,321,495 |
71,471 |
3.43 % |
7,734,996 |
55,664 |
2.88 % |
Total earning assets |
37,596,179 |
$ 528,053 |
5.64 % |
38,273,931 |
$ 529,998 |
5.51 % |
36,580,814 |
$ 447,589 |
4.94 % |
Other assets, net |
3,173,027 |
3,056,772 |
3,026,251 |
||||||
Total assets |
$ 40,769,206 |
$ 41,330,703 |
$ 39,607,065 |
||||||
Liabilities and stockholders' equity |
|||||||||
Interest-bearing liabilities |
|||||||||
Interest-bearing deposits |
|||||||||
Savings |
$ 4,928,031 |
$ 21,747 |
1.77 % |
$ 4,861,913 |
$ 20,334 |
1.66 % |
$ 4,664,624 |
$ 9,859 |
0.86 % |
Interest-bearing demand |
7,490,119 |
49,990 |
2.68 % |
7,156,151 |
47,277 |
2.62 % |
6,814,487 |
29,918 |
1.78 % |
Money market |
6,116,604 |
47,306 |
3.11 % |
6,121,105 |
47,110 |
3.05 % |
7,536,393 |
41,637 |
2.24 % |
Network transaction deposits |
1,651,937 |
22,205 |
5.41 % |
1,616,719 |
22,034 |
5.41 % |
1,147,089 |
12,825 |
4.53 % |
Time deposits |
7,198,315 |
84,983 |
4.75 % |
6,264,621 |
72,121 |
4.57 % |
2,362,260 |
15,182 |
2.61 % |
Total interest-bearing deposits |
27,385,005 |
226,231 |
3.32 % |
26,020,510 |
208,875 |
3.18 % |
22,524,853 |
109,422 |
1.97 % |
Federal funds purchased and securities sold under agreements to repurchase |
263,979 |
2,863 |
4.36 % |
347,204 |
3,734 |
4.27 % |
429,780 |
3,143 |
2.97 % |
Other short-term funding |
449,999 |
5,603 |
5.01 % |
— |
— |
— % |
17,339 |
— |
0.01 % |
FHLB advances |
1,540,247 |
21,671 |
5.66 % |
3,467,433 |
49,171 |
5.63 % |
4,254,532 |
49,960 |
4.76 % |
Long-term funding |
539,106 |
10,058 |
7.46 % |
531,155 |
10,185 |
7.67 % |
408,175 |
6,281 |
6.16 % |
Total short and long-term funding |
2,793,331 |
40,194 |
5.78 % |
4,345,793 |
63,090 |
5.77 % |
5,109,826 |
59,384 |
4.71 % |
Total interest-bearing liabilities |
30,178,337 |
$ 266,425 |
3.55 % |
30,366,302 |
$ 271,965 |
3.55 % |
27,634,679 |
$ 168,807 |
2.48 % |
Noninterest-bearing demand deposits |
5,882,052 |
6,171,240 |
7,340,219 |
||||||
Other liabilities |
527,437 |
672,597 |
570,166 |
||||||
Stockholders' equity |
4,181,381 |
4,120,564 |
4,062,001 |
||||||
Total liabilities and stockholders' equity |
$ 40,769,206 |
$ 41,330,703 |
$ 39,607,065 |
||||||
Interest rate spread |
2.09 % |
1.96 % |
2.46 % |
||||||
Net free funds |
0.70 % |
0.73 % |
0.61 % |
||||||
Fully tax-equivalent net interest income and net interest margin |
$ 261,628 |
2.79 % |
$ 258,033 |
2.69 % |
$ 278,782 |
3.07 % |
|||
Fully tax-equivalent adjustment |
3,770 |
4,630 |
4,772 |
||||||
Net interest income |
$ 257,858 |
$ 253,403 |
$ 274,010 |
||||||
Numbers may not sum due to rounding. |
|
(a) |
The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21% and is net of the effects of certain disallowed interest deductions. |
(b) |
Nonaccrual loans and loans held for sale have been included in the average balances. |
(c) |
Interest income includes amortization of net deferred loan origination costs and net accreted purchase loan discount. |
Associated Banc-Corp Loan and Deposit Composition |
|||||||
($ in thousands) |
|||||||
Period end loan composition |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % Change |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % Change |
Commercial and industrial |
$ 9,858,329 |
$ 9,731,555 |
1 % |
$ 10,099,068 |
$ 10,055,487 |
$ 9,869,781 |
— % |
Commercial real estate—owner occupied |
1,095,894 |
1,061,700 |
3 % |
1,054,969 |
1,058,237 |
1,050,236 |
4 % |
Commercial and business lending |
10,954,223 |
10,793,255 |
1 % |
11,154,037 |
11,113,724 |
10,920,017 |
— % |
Commercial real estate—investor |
5,035,195 |
5,124,245 |
(2) % |
5,218,980 |
5,312,928 |
5,094,249 |
(1) % |
Real estate construction |
2,287,041 |
2,271,398 |
1 % |
2,130,719 |
2,009,060 |
2,147,070 |
7 % |
Commercial real estate lending |
7,322,237 |
7,395,644 |
(1) % |
7,349,699 |
7,321,988 |
7,241,318 |
1 % |
Total commercial |
18,276,460 |
18,188,898 |
— % |
18,503,736 |
18,435,711 |
18,161,335 |
1 % |
Residential mortgage |
7,868,180 |
7,864,891 |
— % |
8,782,645 |
8,746,345 |
8,605,164 |
(9) % |
Auto finance |
2,471,257 |
2,256,162 |
10 % |
2,007,164 |
1,777,974 |
1,551,538 |
59 % |
Home equity |
619,764 |
628,526 |
(1) % |
623,650 |
615,506 |
609,787 |
2 % |
Other consumer |
258,603 |
277,740 |
(7) % |
275,993 |
273,367 |
279,248 |
(7) % |
Total consumer |
11,217,802 |
11,027,319 |
2 % |
11,689,451 |
11,413,193 |
11,045,737 |
2 % |
Total loans |
$ 29,494,263 |
$ 29,216,218 |
1 % |
$ 30,193,187 |
$ 29,848,904 |
$ 29,207,072 |
1 % |
Period end deposit and customer funding composition |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % Change |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % Change |
Noninterest-bearing demand |
$ 6,254,135 |
$ 6,119,956 |
2 % |
$ 6,422,994 |
$ 6,565,666 |
$ 7,328,689 |
(15) % |
Savings |
5,124,639 |
4,835,701 |
6 % |
4,836,735 |
4,777,415 |
4,730,472 |
8 % |
Interest-bearing demand |
8,747,127 |
8,843,967 |
(1) % |
7,528,154 |
7,037,959 |
6,977,121 |
25 % |
Money market |
6,721,674 |
6,330,453 |
6 % |
7,268,506 |
7,521,930 |
8,357,625 |
(20) % |
Brokered CDs |
3,931,230 |
4,447,479 |
(12) % |
3,351,399 |
3,818,325 |
1,185,565 |
N/M |
Other time deposits |
2,934,352 |
2,868,494 |
2 % |
2,715,538 |
2,293,114 |
1,752,351 |
67 % |
Total deposits |
33,713,158 |
33,446,049 |
1 % |
32,123,326 |
32,014,409 |
30,331,824 |
11 % |
Other customer funding(a) |
90,536 |
106,620 |
(15) % |
151,644 |
170,873 |
226,258 |
(60) % |
Total deposits and other customer funding |
$ 33,803,694 |
$ 33,552,669 |
1 % |
$ 32,274,971 |
$ 32,185,282 |
$ 30,558,081 |
11 % |
Network transaction deposits(b) |
$ 1,792,820 |
$ 1,566,139 |
14 % |
$ 1,649,389 |
$ 1,600,619 |
$ 1,273,420 |
41 % |
Net deposits and other customer funding(c) |
$ 28,079,644 |
$ 27,539,051 |
2 % |
$ 27,274,183 |
$ 26,766,338 |
$ 28,099,096 |
— % |
Quarter average loan composition |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % Change |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % Change |
Commercial and industrial |
$ 9,729,718 |
$ 9,768,803 |
— % |
$ 9,927,271 |
$ 9,831,956 |
$ 9,600,838 |
1 % |
Commercial real estate—owner occupied |
1,086,537 |
1,051,412 |
3 % |
1,058,313 |
1,067,381 |
1,015,187 |
7 % |
Commercial and business lending |
10,816,255 |
10,820,214 |
— % |
10,985,584 |
10,899,337 |
10,616,026 |
2 % |
Commercial real estate—investor |
5,041,518 |
5,156,528 |
(2) % |
5,205,626 |
5,206,430 |
5,093,122 |
(1) % |
Real estate construction |
2,348,444 |
2,241,281 |
5 % |
2,107,018 |
2,088,937 |
2,158,072 |
9 % |
Commercial real estate lending |
7,389,962 |
7,397,809 |
— % |
7,312,645 |
7,295,367 |
7,251,193 |
2 % |
Total commercial |
18,206,217 |
18,218,024 |
— % |
18,298,229 |
18,194,703 |
17,867,219 |
2 % |
Residential mortgage |
7,896,956 |
8,691,258 |
(9) % |
8,807,157 |
8,701,496 |
8,584,528 |
(8) % |
Auto finance |
2,373,720 |
2,138,536 |
11 % |
1,884,540 |
1,654,523 |
1,490,115 |
59 % |
Home equity |
625,686 |
627,736 |
— % |
619,423 |
612,045 |
618,724 |
1 % |
Other consumer |
266,443 |
276,881 |
(4) % |
275,262 |
275,530 |
285,232 |
(7) % |
Total consumer |
11,162,805 |
11,734,412 |
(5) % |
11,586,382 |
11,243,594 |
10,978,599 |
2 % |
Total loans(d) |
$ 29,369,022 |
$ 29,952,435 |
(2) % |
$ 29,884,611 |
$ 29,438,297 |
$ 28,845,818 |
2 % |
Quarter average deposit composition |
Mar 31, 2024 |
Dec 31, 2023 |
Seql Qtr % Change |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Comp Qtr % Change |
Noninterest-bearing demand |
5,882,052 |
$ 6,171,240 |
(5) % |
$ 6,318,781 |
$ 6,669,787 |
$ 7,340,219 |
(20) % |
Savings |
4,928,031 |
4,861,913 |
1 % |
4,814,499 |
4,749,808 |
4,664,624 |
6 % |
Interest-bearing demand |
7,490,119 |
7,156,151 |
5 % |
6,979,071 |
6,663,775 |
6,814,487 |
10 % |
Money market |
6,116,604 |
6,121,105 |
— % |
6,294,083 |
6,743,810 |
7,536,393 |
(19) % |
Network transaction deposits |
1,651,937 |
1,616,719 |
2 % |
1,639,619 |
1,468,006 |
1,147,089 |
44 % |
Brokered CDs |
4,268,881 |
3,470,516 |
23 % |
3,428,711 |
3,001,775 |
810,889 |
N/M |
Other time deposits |
2,929,434 |
2,794,105 |
5 % |
2,527,030 |
1,984,174 |
1,551,371 |
89 % |
Total deposits |
33,267,057 |
32,191,750 |
3 % |
32,001,794 |
31,281,134 |
29,865,072 |
11 % |
Other customer funding(a) |
101,483 |
127,252 |
(20) % |
164,289 |
196,051 |
245,349 |
(59) % |
Total deposits and other customer funding |
$ 33,368,540 |
$ 32,319,002 |
3 % |
$ 32,166,082 |
$ 31,477,186 |
$ 30,110,421 |
11 % |
Net deposits and other customer funding(c) |
$ 27,447,723 |
$ 27,231,767 |
1 % |
$ 27,097,752 |
$ 27,007,405 |
$ 28,152,443 |
(3) % |
N/M = Not meaningful |
|
Numbers may not sum due to rounding. |
|
(a) |
Includes repurchase agreements and commercial paper. |
(b) |
Included above in interest-bearing demand and money market. |
(c) |
Total deposits and other customer funding, excluding brokered CDs and network transaction deposits. |
(d) |
Nonaccrual loans and loans held for sale have been included in the average balances. |
Associated Banc-Corp Non-GAAP Financial Measures Reconciliation |
|||||
($ in millions, except per share data) |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
1Q23 |
Selected equity and performance ratios(a)(b)(c) |
|||||
Tangible common equity / tangible assets |
7.08 % |
7.11 % |
6.88 % |
6.94 % |
7.03 % |
Return on average equity |
7.81 % |
(8.74) % |
7.99 % |
8.47 % |
10.32 % |
Return on average tangible common equity |
11.31 % |
(13.13) % |
11.67 % |
12.38 % |
15.26 % |
Return on average common equity Tier 1 |
10.27 % |
(11.85) % |
10.08 % |
10.88 % |
13.38 % |
Return on average tangible assets |
0.84 % |
(0.88) % |
0.84 % |
0.90 % |
1.11 % |
Average stockholders' equity / average assets |
10.26 % |
9.97 % |
10.06 % |
10.18 % |
10.26 % |
Tangible common equity reconciliation(a) |
|||||
Common equity |
$ 3,975 |
$ 3,980 |
$ 3,934 |
$ 3,929 |
$ 3,932 |
Goodwill and other intangible assets, net |
(1,143) |
(1,145) |
(1,148) |
(1,150) |
(1,152) |
Tangible common equity |
$ 2,831 |
$ 2,834 |
$ 2,786 |
$ 2,779 |
$ 2,779 |
Tangible assets reconciliation(a) |
|||||
Total assets |
$ 41,137 |
$ 41,016 |
$ 41,637 |
$ 41,219 |
$ 40,703 |
Goodwill and other intangible assets, net |
(1,143) |
(1,145) |
(1,148) |
(1,150) |
(1,152) |
Tangible assets |
$ 39,994 |
$ 39,870 |
$ 40,490 |
$ 40,070 |
$ 39,550 |
Average tangible common equity and average common equity Tier 1 reconciliation(a) |
|||||
Common equity |
$ 3,987 |
$ 3,926 |
$ 3,938 |
$ 3,935 |
$ 3,868 |
Goodwill and other intangible assets, net |
(1,145) |
(1,147) |
(1,149) |
(1,151) |
(1,153) |
Tangible common equity |
2,843 |
2,780 |
2,789 |
2,784 |
2,715 |
Modified CECL transitional amount |
22 |
45 |
45 |
45 |
45 |
Accumulated other comprehensive loss |
188 |
286 |
302 |
252 |
259 |
Deferred tax assets, net |
12 |
27 |
28 |
28 |
28 |
Average common equity Tier 1 |
$ 3,065 |
$ 3,138 |
$ 3,164 |
$ 3,108 |
$ 3,047 |
Average tangible assets reconciliation(a) |
|||||
Total assets |
$ 40,769 |
$ 41,331 |
$ 41,076 |
$ 40,558 |
$ 39,607 |
Goodwill and other intangible assets, net |
(1,145) |
(1,147) |
(1,149) |
(1,151) |
(1,153) |
Tangible assets |
$ 39,625 |
$ 40,184 |
$ 39,927 |
$ 39,407 |
$ 38,454 |
Adjusted net income reconciliation(b) |
|||||
Net income |
$ 81 |
$ (91) |
$ 83 |
$ 87 |
$ 103 |
Other intangible amortization, net of tax |
2 |
2 |
2 |
2 |
2 |
Adjusted net income |
$ 83 |
$ (89) |
$ 85 |
$ 89 |
$ 105 |
Adjusted net income available to common equity reconciliation(b) |
|||||
Net income available to common equity |
$ 78 |
$ (94) |
$ 80 |
$ 84 |
$ 100 |
Other intangible amortization, net of tax |
2 |
2 |
2 |
2 |
2 |
Adjusted net income available to common equity |
$ 80 |
$ (92) |
$ 82 |
$ 86 |
$ 102 |
Selected trend information(d) |
|||||
Wealth management fees |
$ 22 |
$ 21 |
$ 21 |
$ 20 |
$ 20 |
Service charges and deposit account fees |
12 |
11 |
13 |
12 |
13 |
Card-based fees |
11 |
12 |
12 |
11 |
11 |
Other fee-based revenue |
4 |
4 |
5 |
4 |
4 |
Fee-based revenue |
50 |
47 |
50 |
49 |
48 |
Other |
15 |
(178) |
17 |
17 |
14 |
Total noninterest income |
$ 65 |
$ (131) |
$ 67 |
$ 66 |
$ 62 |
Pre-tax pre-provision income(e) |
|||||
Income before income taxes |
$ 101 |
$ (138) |
$ 103 |
$ 111 |
$ 131 |
Provision for credit losses |
24 |
21 |
22 |
22 |
18 |
Pre-tax pre-provision income |
$ 125 |
$ (117) |
$ 125 |
$ 133 |
$ 149 |
End of period core customer deposits reconciliation |
|||||
Total deposits |
$ 33,713 |
$ 33,446 |
$ 32,123 |
$ 32,014 |
$ 30,332 |
Network transaction deposits |
(1,793) |
(1,566) |
(1,649) |
(1,601) |
(1,273) |
Brokered CDs |
(3,931) |
(4,447) |
(3,351) |
(3,818) |
(1,186) |
Core customer deposits |
$ 27,989 |
$ 27,432 |
$ 27,123 |
$ 26,595 |
$ 27,873 |
Numbers may not sum due to rounding. |
|
(a) |
Tangible common equity and tangible assets exclude goodwill and other intangible assets, net. |
(b) |
Adjusted net income and adjusted net income available to common equity, which are used in the calculation of return on average tangible assets and return on average tangible common equity, respectively, add back other intangible amortization, net of tax. |
(c) |
These capital measurements are used by management, regulators, investors, and analysts to assess, monitor, and compare the quality and composition of our capital with the capital of other financial services companies. |
(d) |
These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation's results of operations. |
(e) |
Management believes this measure is meaningful because it reflects adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide greater understanding of ongoing operations, and enhance comparability of results with prior periods. |
Associated Banc-Corp Non-GAAP Financial Measures Reconciliation |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
1Q23 |
Efficiency ratio reconciliation(a) |
|||||
Federal Reserve efficiency ratio |
61.03 % |
132.01 % |
60.06 % |
58.49 % |
56.07 % |
Fully tax-equivalent adjustment |
(0.71) % |
(3.29) % |
(0.89) % |
(0.85) % |
(0.79) % |
Other intangible amortization |
(0.69) % |
(1.21) % |
(0.69) % |
(0.68) % |
(0.66) % |
Fully tax-equivalent efficiency ratio |
59.63 % |
127.54 % |
58.50 % |
56.96 % |
54.64 % |
FDIC special assessment |
(2.38) % |
(9.50) % |
— % |
— % |
— % |
Announced initiatives |
— % |
(53.92) % |
— % |
— % |
— % |
Adjusted efficiency ratio |
57.25 % |
64.12 % |
58.50 % |
56.96 % |
54.64 % |
One Time Item Noninterest Income Reconciliation |
YTD |
||
($ in thousands) |
4Q23 |
Dec 2023 |
|
GAAP noninterest income |
$ (131,013) |
$ 63,182 |
|
Loss on mortgage portfolio sale(b) |
136,239 |
136,239 |
|
Net loss on sale of investments(b) |
64,940 |
64,940 |
|
Noninterest income, excluding one time items |
$ 70,166 |
$ 264,361 |
|
One Time Item Noninterest Expense Reconciliation |
YTD |
||
($ in thousands) |
1Q24 |
4Q23 |
Dec 2023 |
GAAP noninterest expense |
$ 197,657 |
$ 239,391 |
$ 813,682 |
FDIC special assessment |
(7,696) |
(30,597) |
(30,597) |
Noninterest expense, excluding one time items |
$ 189,961 |
$ 208,795 |
$ 783,085 |
(a) |
The efficiency ratio as defined by the Federal Reserve guidance is noninterest expense (which includes the provision for unfunded commitments) divided by the sum of net interest income plus noninterest income, excluding investment securities gains (losses), net. The fully tax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net. The adjusted efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, FDIC special assessment costs, and announced initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net and announced initiatives. Management believes the adjusted efficiency ratio is a meaningful measure as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and provides a better measure as to how the Corporation is managing its expenses by adjusting for one time costs like the FDIC special assessment and announced initiatives. |
(b) |
The mortgage portfolio sale and investments sold that are classified as one time items are the result of a balance sheet repositioning that the Corporation announced in fourth quarter of 2023. |
Investor Contact:
Ben McCarville, Vice President, Director of Investor Relations
920-491-7059
Media Contact:
Marilka Vélez, Senior Vice President, Senior Director of Marketing
920-491-7518
SOURCE Associated Banc-Corp
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