Associated Banc-Corp Reports Second Quarter 2024 Earnings of $0.74 per Common Share, or $0.52 per Common Share(1) Excluding a One Time Item Recognized During the Quarter
GREEN BAY, Wis., July 25, 2024 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $113 million, or $0.74 per common share, for the quarter ended June 30, 2024. Excluding a one time tax benefit recognized during the quarter ended June 30, 2024, Associated reported earnings of $80 million, or $0.52 per common share. These amounts compare to earnings of $78 million, or $0.52 per common share, for the quarter ended March 31, 2024 and earnings of $84 million, or $0.56 per common share, for the quarter ended June 30, 2023.
"After demonstrating an ability to execute with Phase 1 of our strategic plan, we continued to build momentum across the company by adding talent in key areas and deploying product and digital enhancements during the second quarter," said President and CEO Andy Harmening. "This momentum has translated to encouraging trends in several foundational performance measures, including industry-leading customer satisfaction scores and the strongest consumer checking household growth we've seen in over a decade."
"Importantly, we also delivered strong financial results during the quarter through steady revenues, credit stability and capital accretion. While macro uncertainty remains top of mind in the near-term, we feel well-positioned as we move to the back half of the year thanks to our foundational discipline, the stability of our markets, and the execution of our strategic plan."
Second Quarter 2024 Highlights
- GAAP diluted earnings per share of $0.74; Adjusted diluted earnings per share1 of $0.52
- Total quarterly average loan growth of $211 million vs. first quarter 2024
- Total quarterly average core customer deposit1 decrease of $240 million vs. first quarter 2024; total quarterly average deposit decrease of $638 million vs. first quarter 2024
- Net interest income of $257 million
- Net interest margin of 2.75%
- Noninterest income of $65 million
- Noninterest expense of $196 million
- Provision for credit losses of $23 million
- Allowance for credit losses on loans / total loans of 1.32%
- Net charge offs / average loans (annualized) of 0.29%
1 This is a non-GAAP financial measure. See financial tables for a reconciliation of non-GAAP financial measures to GAAP financial measures.
Loans
Second quarter 2024 average total loans of $29.6 billion increased 1%, or $211 million, from the prior quarter and increased $141 million from the same period last year. With respect to second quarter 2024 average balances by loan category:
- Commercial and business lending increased $195 million from the prior quarter and increased $112 million from the same period last year to $11.0 billion.
- Commercial real estate lending decreased $140 million from the prior quarter and decreased $46 million from the same period last year to $7.2 billion.
- Consumer lending increased $156 million from the prior quarter and increased $75 million from the same period last year to $11.3 billion.
Second quarter 2024 period end total loans of $29.6 billion increased $124 million from the prior quarter and decreased 1%, or $231 million, from the same period last year. With respect to second quarter 2024 period end balances by loan category:
- Commercial and business lending increased $118 million from the prior quarter and decreased $41 million from the same period last year to $11.1 billion.
- Commercial real estate lending decreased $65 million from both the prior quarter and the same period last year to $7.3 billion.
- Consumer lending increased $71 million from the prior quarter and decreased $125 million from the same period last year to $11.3 billion.
Based on current market conditions, we now expect 2024 total loan growth to finish at the lower end of our previous 4% to 6% range on an end of period basis as compared to the year ended December 31, 2023.
Deposits
Second quarter 2024 average deposits of $32.6 billion decreased 2%, or $638 million, from the prior quarter and increased 4%, or $1.3 billion, from the same period last year. With respect to second quarter 2024 average balances by deposit category:
- Noninterest-bearing demand deposits decreased $170 million from the prior quarter and decreased $958 million from the same period last year to $5.7 billion.
- Savings increased $206 million from the prior quarter and increased $384 million from the same period last year to $5.1 billion.
- Interest-bearing demand deposits decreased $224 million from the prior quarter and increased $602 million from the same period last year to $7.3 billion.
- Money market deposits decreased $122 million from the prior quarter and decreased $749 million from the same period last year to $6.0 billion.
- Total time deposits decreased $271 million from the prior quarter and increased $1.9 billion from the same period last year to $6.9 billion.
- Network transaction deposits decreased $57 million from the prior quarter and increased $127 million from the same period last year to $1.6 billion.
Second quarter 2024 period end deposits of $32.7 billion decreased 3%, or $1.0 billion, from the prior quarter and increased 2%, or $677 million, from the same period last year. With respect to second quarter 2024 period end balances by deposit category:
- Noninterest-bearing demand deposits decreased $439 million from the prior quarter and decreased $751 million from the same period last year to $5.8 billion.
- Savings increased $32 million from the prior quarter and increased $380 million from the same period last year to $5.2 billion.
- Interest-bearing demand deposits decreased $463 million from the prior quarter and increased $1.2 billion from the same period last year to $8.3 billion.
- Money market deposits decreased $427 million from the prior quarter and decreased $1.2 billion from the same period last year to $6.3 billion.
- Total time deposits increased $274 million from the prior quarter and increased $1.0 billion from the same period last year to $7.1 billion.
- Network transaction deposits (included in money market and interest-bearing demand deposits) decreased $290 million from the prior quarter and decreased $98 million from the same period last year to $1.5 billion.
Based on current market conditions, we now expect 2024 core customer deposit growth to finish at the lower end of our previous 3% to 5% range on an end of period basis as compared to the year ended December 31, 2023.
Net Interest Income and Net Interest Margin
Second quarter 2024 net interest income of $257 million decreased $1 million from both the prior quarter and the same period last year. The net interest margin decreased to 2.75%, reflecting a 4 basis point decrease from the prior quarter and a 5 basis point decrease from the same period last year.
- The average yield on total loans for the second quarter of 2024 decreased 1 basis point from the prior quarter and increased 44 basis points from the same period last year to 6.21%.
- The average cost of total interest-bearing liabilities for the second quarter of 2024 increased 5 basis points from the prior quarter and increased 54 basis points from the same period last year to 3.60%.
- The net free funds benefit for the second quarter of 2024 remained flat compared to the prior quarter and increased 2 basis points from the same period last year to 0.70%.
Based on current market conditions, we now expect total net interest income growth of 1% to 3% in 2024.
Noninterest Income
Second quarter 2024 total noninterest income of $65 million increased slightly compared to the prior quarter and decreased slightly from the same period last year. With respect to second quarter 2024 noninterest income line items:
- Bank and corporate owned life insurance increased $2 million from both the prior quarter and the same period last year.
- Wealth management fees increased $1 million from the prior quarter and increased $2 million from the same period last year.
- Card-based fees increased $1 million from both the prior quarter and the same period last year.
- Investment securities gains (losses), net decreased $4 million from the prior quarter and increased slightly from the same period last year, with the quarterly decrease driven primarily by a $4 million gain on sale of Visa B shares recognized in the first quarter of 2024.
Excluding the impact of the mortgage and investment securities sales announced during the fourth quarter of 2023, we now expect total noninterest income to finish within a range of negative 1% to 1% growth in 2024.
Noninterest Expense
Second quarter 2024 total noninterest expense of $196 million decreased $2 million, or 1%, from the prior quarter and increased $5 million, or 3%, from the same period last year as we continued to invest in our strategic initiatives. With respect to second quarter 2024 noninterest expense line items:
- Personnel expense increased $2 million from the prior quarter and increased $7 million from the same period last year.
- Technology expense increased $1 million from the prior quarter and increased $3 million from the same period last year.
- FDIC assessment expense decreased $7 million from the prior quarter and decreased $2 million from the same period last year. The quarterly decrease was driven primarily by an $8 million increase in special assessment recognized in the first quarter of 2024, partially offset by a $2 million adjustment based on an updated special assessment estimate received from the FDIC in the second quarter of 2024.
After adjusting to exclude the impact of the $31 million FDIC special assessment booked during the fourth quarter of 2023, the $8 million FDIC special assessment booked during the first quarter of 2024, and the $2 million FDIC special assessment adjustment booked during the second quarter of 2024, we continue to expect total noninterest expense to grow by 2% to 3% in 2024.
Taxes
Second quarter 2024 results included a tax benefit of $13 million compared to $20 million of tax expense in the prior quarter and $24 million of tax expense in the same period last year. The benefit recognized in the second quarter of 2024 was primarily driven by a strategic reallocation of our investment securities portfolio resulting in a deferred tax benefit of approximately $33 million during the quarter.
After excluding the impact of the one time $33 million tax benefit recognized in the second quarter of 2024, we continue to expect the annual effective tax rate to be between 19% and 21% in 2024, assuming no change in the corporate tax rate.
Credit
The second quarter 2024 provision for credit losses on loans was $23 million, compared to a provision of $24 million in the prior quarter and a provision of $22 million in the same period last year. With respect to second quarter 2024 credit quality:
- Nonaccrual loans of $154 million decreased $24 million from the prior quarter and increased $23 million from the same period last year. The nonaccrual loans to total loans ratio was 0.52% in the second quarter, down from 0.60% in the prior quarter and up from 0.44% in the same period last year.
- Second quarter 2024 net charge offs of $21 million decreased compared to net charge offs of $22 million in the prior quarter and increased compared to net charge offs of $11 million in the same period last year.
- The allowance for credit losses on loans (ACLL) of $390 million increased $2 million compared to the prior quarter and increased $13 million compared to the same period last year. The ACLL to total loans ratio was 1.32% in the second quarter, up from 1.31% in the prior quarter and up from 1.26% 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 9.68% at June 30, 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.
SECOND 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, July 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 second quarter 2024 earnings call. The second 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 $42 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 presentation 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," "intend," "target," "outlook," "project," "guidance," "forecast," 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 Form 10-Qs and other SEC filings, and 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) |
June 30, |
March 31, |
Seql Qtr $ |
December 31, |
September 30, |
June 30, |
Comp Qtr $ |
Assets |
|||||||
Cash and due from banks |
$ 470,818 |
$ 429,859 |
$ 40,959 |
$ 484,384 |
$ 388,694 |
$ 407,620 |
$ 63,198 |
Interest-bearing deposits in other financial institutions |
484,677 |
420,114 |
64,563 |
425,089 |
323,130 |
190,881 |
293,796 |
Federal funds sold and securities purchased under |
3,600 |
1,610 |
1,990 |
14,350 |
965 |
31,160 |
(27,560) |
Investment securities available for sale, at fair value |
3,912,730 |
3,724,148 |
188,582 |
3,600,892 |
3,491,679 |
3,504,777 |
407,953 |
Investment securities held to maturity, net, at |
3,799,035 |
3,832,967 |
(33,932) |
3,860,160 |
3,900,415 |
3,938,877 |
(139,842) |
Equity securities |
22,944 |
19,571 |
3,373 |
41,651 |
35,937 |
30,883 |
(7,939) |
Federal Home Loan Bank and Federal Reserve Bank |
212,102 |
173,968 |
38,134 |
229,171 |
268,698 |
271,637 |
(59,535) |
Residential loans held for sale |
83,795 |
52,414 |
31,381 |
33,011 |
54,790 |
38,083 |
45,712 |
Commercial loans held for sale |
— |
— |
— |
90,303 |
— |
15,000 |
(15,000) |
Loans |
29,618,271 |
29,494,263 |
124,008 |
29,216,218 |
30,193,187 |
29,848,904 |
(230,633) |
Allowance for loan losses |
(355,844) |
(356,006) |
162 |
(351,094) |
(345,795) |
(338,750) |
(17,094) |
Loans, net |
29,262,428 |
29,138,257 |
124,171 |
28,865,124 |
29,847,392 |
29,510,153 |
(247,725) |
Tax credit and other investments |
246,300 |
255,252 |
(8,952) |
258,067 |
256,905 |
263,583 |
(17,283) |
Premises and equipment, net |
369,968 |
367,618 |
2,350 |
372,978 |
373,017 |
374,866 |
(4,898) |
Bank and corporate owned life insurance |
683,451 |
685,089 |
(1,638) |
682,649 |
679,775 |
678,578 |
4,873 |
Goodwill |
1,104,992 |
1,104,992 |
— |
1,104,992 |
1,104,992 |
1,104,992 |
— |
Other intangible assets, net |
36,066 |
38,268 |
(2,202) |
40,471 |
42,674 |
44,877 |
(8,811) |
Mortgage servicing rights, net |
85,640 |
85,226 |
414 |
84,390 |
89,131 |
80,449 |
5,191 |
Interest receivable |
173,106 |
167,092 |
6,014 |
169,569 |
171,119 |
159,185 |
13,921 |
Other assets |
672,256 |
640,638 |
31,618 |
658,604 |
608,068 |
573,870 |
98,386 |
Total assets |
$ 41,623,908 |
$ 41,137,084 |
$ 486,824 |
$ 41,015,855 |
$ 41,637,381 |
$ 41,219,473 |
$ 404,435 |
Liabilities and stockholders' equity |
|||||||
Noninterest-bearing demand deposits |
$ 5,815,045 |
$ 6,254,135 |
$ (439,090) |
$ 6,119,956 |
$ 6,422,994 |
$ 6,565,666 |
$ (750,621) |
Interest-bearing deposits |
26,875,995 |
27,459,023 |
(583,028) |
27,326,093 |
25,700,332 |
25,448,743 |
1,427,252 |
Total deposits |
32,691,039 |
33,713,158 |
(1,022,119) |
33,446,049 |
32,123,326 |
32,014,409 |
676,630 |
Short-term funding |
859,539 |
765,671 |
93,868 |
326,780 |
451,644 |
341,253 |
518,286 |
FHLB advances |
2,673,046 |
1,333,411 |
1,339,635 |
1,940,194 |
3,733,041 |
3,630,747 |
(957,701) |
Other long-term funding |
536,113 |
536,055 |
58 |
541,269 |
529,459 |
534,273 |
1,840 |
Allowance for unfunded commitments |
33,776 |
31,776 |
2,000 |
34,776 |
34,776 |
38,276 |
(4,500) |
Accrued expenses and other liabilities |
588,057 |
588,341 |
(284) |
552,814 |
637,491 |
537,640 |
50,417 |
Total liabilities |
37,381,571 |
36,968,412 |
413,159 |
36,841,882 |
37,509,738 |
37,096,599 |
284,972 |
Stockholders' equity |
|||||||
Preferred equity |
194,112 |
194,112 |
— |
194,112 |
194,112 |
194,112 |
— |
Common equity |
4,048,225 |
3,974,561 |
73,664 |
3,979,861 |
3,933,531 |
3,928,762 |
119,463 |
Total stockholders' equity |
4,242,337 |
4,168,673 |
73,664 |
4,173,973 |
4,127,643 |
4,122,874 |
119,463 |
Total liabilities and stockholders' equity |
$ 41,623,908 |
$ 41,137,084 |
$ 486,824 |
$ 41,015,855 |
$ 41,637,381 |
$ 41,219,473 |
$ 404,435 |
Numbers may not sum due to rounding. |
Associated Banc-Corp Consolidated Statements of Income (Unaudited) |
Comp Qtr |
YTD |
YTD |
Comp YTD |
||||
($ in thousands, except per share data) |
2Q24 |
2Q23 |
$ Change |
% Change |
June 2024 |
June 2023 |
$ Change |
% Change |
Interest income |
||||||||
Interest and fees on loans |
$ 456,788 |
$ 423,307 |
$ 33,481 |
8 % |
$ 911,260 |
$ 814,626 |
$ 96,634 |
12 % |
Interest and dividends on investment securities |
||||||||
Taxable |
50,278 |
35,845 |
14,433 |
40 % |
96,826 |
65,987 |
30,839 |
47 % |
Tax-exempt |
14,669 |
15,994 |
(1,325) |
(8) % |
29,443 |
32,019 |
(2,576) |
(8) % |
Other interest |
8,539 |
6,086 |
2,453 |
40 % |
16,133 |
11,415 |
4,718 |
41 % |
Total interest income |
530,274 |
481,231 |
49,043 |
10 % |
1,053,662 |
924,048 |
129,614 |
14 % |
Interest expense |
||||||||
Interest on deposits |
221,062 |
162,196 |
58,866 |
36 % |
447,293 |
271,618 |
175,675 |
65 % |
Interest on federal funds purchased and securities sold |
2,303 |
2,261 |
42 |
2 % |
5,166 |
5,404 |
(238) |
(4) % |
Interest on other short-term funding |
6,077 |
— |
6,077 |
N/M |
10,785 |
1 |
10,784 |
N/M |
Interest on FHLB Advances |
34,143 |
49,261 |
(15,118) |
(31) % |
55,814 |
99,222 |
(43,408) |
(44) % |
Interest on long-term funding |
10,096 |
9,596 |
500 |
5 % |
20,154 |
15,876 |
4,278 |
27 % |
Total interest expense |
273,681 |
223,314 |
50,367 |
23 % |
539,211 |
392,121 |
147,090 |
38 % |
Net interest income |
256,593 |
257,917 |
(1,324) |
(1) % |
514,451 |
531,927 |
(17,476) |
(3) % |
Provision for credit losses |
23,008 |
22,100 |
908 |
4 % |
47,009 |
40,071 |
6,938 |
17 % |
Net interest income after provision for credit losses |
233,585 |
235,817 |
(2,232) |
(1) % |
467,442 |
491,856 |
(24,414) |
(5) % |
Noninterest income |
||||||||
Wealth management fees |
22,628 |
20,483 |
2,145 |
10 % |
44,323 |
40,672 |
3,651 |
9 % |
Service charges and deposit account fees |
12,263 |
12,372 |
(109) |
(1) % |
24,702 |
25,366 |
(664) |
(3) % |
Card-based fees |
11,975 |
11,396 |
579 |
5 % |
23,242 |
21,982 |
1,260 |
6 % |
Other fee-based revenue |
4,857 |
4,465 |
392 |
9 % |
9,259 |
8,740 |
519 |
6 % |
Capital markets, net |
4,685 |
5,093 |
(408) |
(8) % |
8,735 |
10,176 |
(1,441) |
(14) % |
Mortgage banking, net |
2,505 |
7,768 |
(5,263) |
(68) % |
5,166 |
11,313 |
(6,147) |
(54) % |
Bank and corporate owned life insurance |
4,584 |
2,172 |
2,412 |
111 % |
7,154 |
4,835 |
2,319 |
48 % |
Asset (losses), net |
(627) |
(299) |
(328) |
110 % |
(933) |
(35) |
(898) |
N/M |
Investment securities gains, net |
67 |
14 |
53 |
N/M |
3,947 |
66 |
3,881 |
N/M |
Other |
2,222 |
2,080 |
142 |
7 % |
4,549 |
4,501 |
48 |
1 % |
Total noninterest income |
65,159 |
65,543 |
(384) |
(1) % |
130,144 |
127,616 |
2,528 |
2 % |
Noninterest expense |
||||||||
Personnel |
121,581 |
114,089 |
7,492 |
7 % |
240,976 |
230,510 |
10,466 |
5 % |
Technology |
27,161 |
24,220 |
2,941 |
12 % |
53,362 |
47,818 |
5,544 |
12 % |
Occupancy |
13,128 |
13,587 |
(459) |
(3) % |
26,761 |
28,650 |
(1,889) |
(7) % |
Business development and advertising |
7,535 |
7,106 |
429 |
6 % |
14,052 |
12,955 |
1,097 |
8 % |
Equipment |
4,450 |
4,975 |
(525) |
(11) % |
9,049 |
9,906 |
(857) |
(9) % |
Legal and professional |
4,429 |
4,831 |
(402) |
(8) % |
9,101 |
8,688 |
413 |
5 % |
Loan and foreclosure costs |
1,793 |
1,635 |
158 |
10 % |
3,771 |
2,773 |
998 |
36 % |
FDIC assessment |
7,131 |
9,550 |
(2,419) |
(25) % |
21,077 |
16,425 |
4,652 |
28 % |
Other intangible amortization |
2,203 |
2,203 |
— |
— % |
4,405 |
4,405 |
— |
— % |
Other |
6,450 |
8,476 |
(2,026) |
(24) % |
10,963 |
15,955 |
(4,992) |
(31) % |
Total noninterest expense |
195,861 |
190,673 |
5,188 |
3 % |
393,518 |
378,086 |
15,432 |
4 % |
Income before income taxes |
102,884 |
110,687 |
(7,803) |
(7) % |
204,068 |
241,386 |
(37,318) |
(15) % |
Income tax (benefit) expense |
(12,689) |
23,533 |
(36,222) |
N/M |
7,326 |
50,873 |
(43,547) |
(86) % |
Net income |
115,573 |
87,154 |
28,419 |
33 % |
196,742 |
190,514 |
6,228 |
3 % |
Preferred stock dividends |
2,875 |
2,875 |
— |
— % |
5,750 |
5,750 |
— |
— % |
Net income available to common equity |
$ 112,698 |
$ 84,279 |
$ 28,419 |
34 % |
$ 190,992 |
$ 184,764 |
$ 6,228 |
3 % |
Earnings per common share |
||||||||
Basic |
$ 0.75 |
$ 0.56 |
$ 0.19 |
34 % |
$ 1.27 |
$ 1.23 |
$ 0.04 |
3 % |
Diluted |
$ 0.74 |
$ 0.56 |
$ 0.18 |
32 % |
$ 1.26 |
$ 1.22 |
$ 0.04 |
3 % |
Average common shares outstanding |
||||||||
Basic |
149,872 |
149,986 |
(114) |
— % |
149,864 |
149,875 |
(11) |
— % |
Diluted |
151,288 |
150,870 |
418 |
— % |
151,310 |
150,903 |
407 |
— % |
N/M = Not meaningful |
Numbers may not sum due to rounding. |
Associated Banc-Corp |
|||||||||
($ in thousands, except per share data) |
Seql Qtr |
Comp Qtr |
|||||||
2Q24 |
1Q24 |
$ Change |
% Change |
4Q23 |
3Q23 |
2Q23 |
$ Change |
% Change |
|
Interest income |
|||||||||
Interest and fees on loans |
$ 456,788 |
$ 454,472 |
$ 2,316 |
1 % |
$ 457,868 |
$ 447,912 |
$ 423,307 |
$ 33,481 |
8 % |
Interest and dividends on investment securities |
|||||||||
Taxable |
50,278 |
46,548 |
3,730 |
8 % |
41,809 |
38,210 |
35,845 |
14,433 |
40 % |
Tax-exempt |
14,669 |
14,774 |
(105) |
(1) % |
15,273 |
15,941 |
15,994 |
(1,325) |
(8) % |
Other interest |
8,539 |
7,595 |
944 |
12 % |
10,418 |
6,575 |
6,086 |
2,453 |
40 % |
Total interest income |
530,274 |
523,388 |
6,886 |
1 % |
525,367 |
508,637 |
481,231 |
49,043 |
10 % |
Interest expense |
|||||||||
Interest on deposits |
221,062 |
226,231 |
(5,169) |
(2) % |
208,875 |
193,131 |
162,196 |
58,866 |
36 % |
Interest on federal funds purchased and securities sold |
2,303 |
2,863 |
(560) |
(20) % |
3,734 |
3,100 |
2,261 |
42 |
2 % |
Interest on other short-term funding |
6,077 |
4,708 |
1,369 |
29 % |
— |
— |
— |
6,077 |
N/M |
Interest on FHLB advances |
34,143 |
21,671 |
12,472 |
58 % |
49,171 |
48,143 |
49,261 |
(15,118) |
(31) % |
Interest on long-term funding |
10,096 |
10,058 |
38 |
— % |
10,185 |
10,019 |
9,596 |
500 |
5 % |
Total interest expense |
273,681 |
265,530 |
8,151 |
3 % |
271,965 |
254,394 |
223,314 |
50,367 |
23 % |
Net interest income |
256,593 |
257,858 |
(1,265) |
— % |
253,403 |
254,244 |
257,917 |
(1,324) |
(1) % |
Provision for credit losses |
23,008 |
24,001 |
(993) |
(4) % |
21,007 |
21,943 |
22,100 |
908 |
4 % |
Net interest income after provision for credit losses |
233,585 |
233,857 |
(272) |
— % |
232,395 |
232,301 |
235,817 |
(2,232) |
(1) % |
Noninterest income |
|||||||||
Wealth management fees |
22,628 |
21,694 |
934 |
4 % |
21,003 |
20,828 |
20,483 |
2,145 |
10 % |
Service charges and deposit account fees |
12,263 |
12,439 |
(176) |
(1) % |
10,815 |
12,864 |
12,372 |
(109) |
(1) % |
Card-based fees |
11,975 |
11,267 |
708 |
6 % |
11,528 |
11,510 |
11,396 |
579 |
5 % |
Other fee-based revenue |
4,857 |
4,402 |
455 |
10 % |
4,019 |
4,509 |
4,465 |
392 |
9 % |
Capital markets, net |
4,685 |
4,050 |
635 |
16 % |
9,106 |
5,368 |
5,093 |
(408) |
(8) % |
Mortgage banking, net |
2,505 |
2,662 |
(157) |
(6) % |
1,615 |
6,501 |
7,768 |
(5,263) |
(68) % |
Loss on mortgage portfolio sale |
— |
— |
— |
N/M |
(136,239) |
— |
— |
— |
N/M |
Bank and corporate owned life insurance |
4,584 |
2,570 |
2,014 |
78 % |
3,383 |
2,047 |
2,172 |
2,412 |
111 % |
Asset (losses) gains, net |
(627) |
(306) |
(321) |
105 % |
(136) |
625 |
(299) |
(328) |
110 % |
Investment securities gains (losses), net |
67 |
3,879 |
(3,812) |
(98) % |
(58,958) |
(11) |
14 |
53 |
N/M |
Other |
2,222 |
2,327 |
(105) |
(5) % |
2,850 |
2,339 |
2,080 |
142 |
7 % |
Total noninterest income (loss) |
65,159 |
64,985 |
174 |
— % |
(131,013) |
66,579 |
65,543 |
(384) |
(1) % |
Noninterest expense |
|||||||||
Personnel |
121,581 |
119,395 |
2,186 |
2 % |
120,686 |
117,159 |
114,089 |
7,492 |
7 % |
Technology |
27,161 |
26,200 |
961 |
4 % |
28,027 |
26,172 |
24,220 |
2,941 |
12 % |
Occupancy |
13,128 |
13,633 |
(505) |
(4) % |
14,429 |
14,125 |
13,587 |
(459) |
(3) % |
Business development and advertising |
7,535 |
6,517 |
1,018 |
16 % |
8,350 |
7,100 |
7,106 |
429 |
6 % |
Equipment |
4,450 |
4,599 |
(149) |
(3) % |
4,742 |
5,016 |
4,975 |
(525) |
(11) % |
Legal and professional |
4,429 |
4,672 |
(243) |
(5) % |
6,762 |
4,461 |
4,831 |
(402) |
(8) % |
Loan and foreclosure costs |
1,793 |
1,979 |
(186) |
(9) % |
585 |
2,049 |
1,635 |
158 |
10 % |
FDIC assessment |
7,131 |
13,946 |
(6,815) |
(49) % |
41,497 |
9,150 |
9,550 |
(2,419) |
(25) % |
Other intangible amortization |
2,203 |
2,203 |
— |
— % |
2,203 |
2,203 |
2,203 |
— |
— % |
Other |
6,450 |
4,513 |
1,937 |
43 % |
12,110 |
8,771 |
8,476 |
(2,026) |
(24) % |
Total noninterest expense |
195,861 |
197,657 |
(1,796) |
(1) % |
239,391 |
196,205 |
190,673 |
5,188 |
3 % |
Income (loss) before income taxes |
102,884 |
101,185 |
1,699 |
2 % |
(138,009) |
102,674 |
110,687 |
(7,803) |
(7) % |
Income tax (benefit) expense |
(12,689) |
20,016 |
(32,705) |
N/M |
(47,202) |
19,426 |
23,533 |
(36,222) |
N/M |
Net income (loss) |
115,573 |
81,169 |
34,404 |
42 % |
(90,806) |
83,248 |
87,154 |
28,419 |
33 % |
Preferred stock dividends |
2,875 |
2,875 |
— |
— % |
2,875 |
2,875 |
2,875 |
— |
— % |
Net income (loss) available to common equity |
$ 112,698 |
$ 78,294 |
$ 34,404 |
44 % |
$ (93,681) |
$ 80,373 |
$ 84,279 |
$ 28,419 |
34 % |
Earnings (loss) per common share |
|||||||||
Basic |
$ 0.75 |
$ 0.52 |
$ 0.23 |
44 % |
$ (0.63) |
$ 0.53 |
$ 0.56 |
$ 0.19 |
34 % |
Diluted |
$ 0.74 |
$ 0.52 |
$ 0.22 |
42 % |
$ (0.62) |
$ 0.53 |
$ 0.56 |
$ 0.18 |
32 % |
Average common shares outstanding |
|||||||||
Basic |
149,872 |
149,855 |
17 |
— % |
150,085 |
150,035 |
149,986 |
(114) |
— % |
Diluted |
151,288 |
151,292 |
(4) |
— % |
151,007 |
151,014 |
150,870 |
418 |
— % |
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) |
YTD Jun 2024 |
YTD Jun 2023 |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Per common share data |
|||||||
Dividends |
$ 0.44 |
$ 0.42 |
$ 0.22 |
$ 0.22 |
$ 0.22 |
$ 0.21 |
$ 0.21 |
Market value: |
|||||||
High |
22.48 |
24.18 |
22.48 |
22.00 |
21.79 |
19.21 |
18.45 |
Low |
19.73 |
14.48 |
19.90 |
19.73 |
15.45 |
16.22 |
14.48 |
Close |
21.15 |
21.51 |
21.39 |
17.11 |
16.23 |
||
Book value / share |
26.85 |
26.37 |
26.35 |
26.06 |
26.03 |
||
Tangible book value / share |
19.28 |
18.78 |
18.77 |
18.46 |
18.41 |
||
Performance ratios (annualized) |
|||||||
Return on average assets |
0.97 % |
0.96 % |
1.13 % |
0.80 % |
(0.87) % |
0.80 % |
0.86 % |
Noninterest expense / average assets |
1.93 % |
1.90 % |
1.92 % |
1.95 % |
2.30 % |
1.90 % |
1.89 % |
Effective tax rate |
3.59 % |
21.08 % |
(12.33) % |
19.78 % |
N/M |
18.92 % |
21.26 % |
Dividend payout ratio(a) |
34.65 % |
34.15 % |
29.33 % |
42.31 % |
N/M |
39.62 % |
37.50 % |
Net interest margin |
2.77 % |
2.93 % |
2.75 % |
2.79 % |
2.69 % |
2.71 % |
2.80 % |
Selected trend information |
|||||||
Average full time equivalent employees(b) |
4,048 |
4,223 |
4,025 |
4,070 |
4,130 |
4,220 |
4,227 |
Branch count |
188 |
188 |
196 |
202 |
202 |
||
Assets under management, at market value(c) |
$ 14,304 |
$ 14,171 |
$ 13,545 |
$ 12,543 |
$ 12,995 |
||
Mortgage loans originated for sale during period |
$ 274 |
$ 168 |
$ 169 |
$ 105 |
$ 112 |
$ 115 |
$ 99 |
Mortgage loan settlements during period(d) |
$ 229 |
$ 151 |
$ 138 |
$ 91 |
$ 957 |
$ 103 |
$ 97 |
Mortgage portfolio loans transferred to held for sale during period(d) |
$ — |
$ — |
$ — |
$ — |
$ 969 |
$ — |
$ — |
Mortgage portfolio serviced for others(d) |
$ 6,307 |
$ 6,349 |
$ 7,364 |
$ 6,452 |
$ 6,525 |
||
Mortgage servicing rights, net / mortgage portfolio serviced for others(d) |
1.36 % |
1.34 % |
1.15 % |
1.38 % |
1.23 % |
||
Shares repurchased during period(e) |
900 |
— |
— |
900 |
— |
— |
— |
Shares outstanding, end of period |
150,785 |
150,739 |
151,037 |
150,951 |
150,919 |
||
Selected quarterly ratios |
|||||||
Loans / deposits |
90.60 % |
87.49 % |
87.35 % |
93.99 % |
93.24 % |
||
Stockholders' equity / assets |
10.19 % |
10.13 % |
10.18 % |
9.91 % |
10.00 % |
||
Risk-based capital(f)(g) |
|||||||
Total risk-weighted assets |
$ 32,768 |
$ 32,753 |
$ 32,733 |
$ 33,497 |
$ 33,144 |
||
Common equity Tier 1 |
$ 3,172 |
$ 3,089 |
$ 3,075 |
$ 3,197 |
$ 3,143 |
||
Common equity Tier 1 capital ratio |
9.68 % |
9.43 % |
9.39 % |
9.55 % |
9.48 % |
||
Tier 1 capital ratio |
10.27 % |
10.02 % |
9.99 % |
10.12 % |
10.07 % |
||
Total capital ratio |
12.34 % |
12.08 % |
12.21 % |
12.25 % |
12.22 % |
||
Tier 1 leverage ratio |
8.37 % |
8.24 % |
8.06 % |
8.42 % |
8.40 % |
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 $844 million. After sale, the servicing was retained for a short period until full servicing was transferred to the purchaser in January 2024. |
(e) |
Does not include repurchases related to tax withholding on equity compensation. |
(f) |
The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. |
(g) |
June 30, 2024 data is estimated. |
Associated Banc-Corp Selected Asset Quality Information |
|||||||
($ in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
Allowance for loan losses |
|||||||
Balance at beginning of period |
$ 356,006 |
$ 351,094 |
1 % |
$ 345,795 |
$ 338,750 |
$ 326,432 |
9 % |
Provision for loan losses |
21,000 |
27,000 |
(22) % |
21,000 |
25,500 |
23,500 |
(11) % |
Charge offs |
(23,290) |
(24,018) |
(3) % |
(17,878) |
(20,535) |
(14,855) |
57 % |
Recoveries |
2,127 |
1,930 |
10 % |
2,177 |
2,079 |
3,674 |
(42) % |
Net (charge offs) recoveries |
(21,163) |
(22,088) |
(4) % |
(15,701) |
(18,455) |
(11,181) |
89 % |
Balance at end of period |
$ 355,844 |
$ 356,006 |
— % |
$ 351,094 |
$ 345,795 |
$ 338,750 |
5 % |
Allowance for unfunded commitments |
|||||||
Balance at beginning of period |
$ 31,776 |
$ 34,776 |
(9) % |
$ 34,776 |
$ 38,276 |
$ 39,776 |
(20) % |
Provision for unfunded commitments |
2,000 |
(3,000) |
N/M |
— |
(3,500) |
(1,500) |
N/M |
Balance at end of period |
$ 33,776 |
$ 31,776 |
6 % |
$ 34,776 |
$ 34,776 |
$ 38,276 |
(12) % |
Allowance for credit losses on loans (ACLL) |
$ 389,620 |
$ 387,782 |
— % |
$ 385,870 |
$ 380,571 |
$ 377,027 |
3 % |
Provision for credit losses on loans |
$ 23,000 |
$ 24,000 |
(4) % |
$ 21,000 |
$ 22,000 |
$ 22,000 |
5 % |
($ in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % Change |
Net (charge offs) recoveries |
|||||||
Commercial and industrial |
$ (13,676) |
$ (18,638) |
(27) % |
$ (13,178) |
$ (16,558) |
$ (11,177) |
22 % |
Commercial real estate—owner occupied |
1 |
2 |
(50) % |
(22) |
2 |
3 |
(67) % |
Commercial and business lending |
(13,674) |
(18,636) |
(27) % |
(13,200) |
(16,556) |
(11,174) |
22 % |
Commercial real estate—investor |
(4,569) |
— |
N/M |
216 |
272 |
2,276 |
N/M |
Real estate construction |
28 |
30 |
(7) % |
38 |
18 |
(18) |
N/M |
Commercial real estate lending |
(4,541) |
30 |
N/M |
253 |
290 |
2,257 |
N/M |
Total commercial |
(18,216) |
(18,606) |
(2) % |
(12,947) |
(16,266) |
(8,917) |
104 % |
Residential mortgage |
(289) |
(62) |
N/M |
(53) |
(22) |
(283) |
2 % |
Auto finance |
(1,480) |
(2,094) |
(29) % |
(1,436) |
(1,269) |
(1,048) |
41 % |
Home equity |
238 |
211 |
13 % |
185 |
128 |
183 |
30 % |
Other consumer |
(1,417) |
(1,537) |
(8) % |
(1,450) |
(1,027) |
(1,117) |
27 % |
Total consumer |
(2,947) |
(3,482) |
(15) % |
(2,754) |
(2,189) |
(2,264) |
30 % |
Total net (charge offs) recoveries |
$ (21,163) |
$ (22,088) |
(4) % |
$ (15,701) |
$ (18,455) |
$ (11,181) |
89 % |
(In basis points) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||
Net (charge offs) recoveries to average loans (annualized) |
|||||||
Commercial and industrial |
(55) |
(77) |
(54) |
(66) |
(46) |
||
Commercial real estate—owner occupied |
— |
— |
(1) |
— |
— |
||
Commercial and business lending |
(50) |
(69) |
(48) |
(60) |
(41) |
||
Commercial real estate—investor |
(37) |
— |
2 |
2 |
18 |
||
Real estate construction |
— |
1 |
1 |
— |
— |
||
Commercial real estate lending |
(25) |
— |
1 |
2 |
12 |
||
Total commercial |
(40) |
(41) |
(28) |
(35) |
(20) |
||
Residential mortgage |
(1) |
— |
— |
— |
(1) |
||
Auto finance |
(24) |
(35) |
(27) |
(27) |
(25) |
||
Home equity |
15 |
14 |
12 |
8 |
12 |
||
Other consumer |
(221) |
(232) |
(208) |
(148) |
(163) |
||
Total consumer |
(10) |
(13) |
(9) |
(7) |
(8) |
||
Total net (charge offs) recoveries |
(29) |
(30) |
(21) |
(25) |
(15) |
||
($ in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % Change |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % Change |
Credit quality |
|||||||
Nonaccrual loans |
$ 154,423 |
$ 178,346 |
(13) % |
$ 148,997 |
$ 168,558 |
$ 131,278 |
18 % |
Other real estate owned (OREO) |
8,325 |
8,437 |
(1) % |
10,506 |
8,452 |
7,575 |
10 % |
Repossessed assets |
671 |
1,241 |
(46) % |
919 |
658 |
348 |
93 % |
Total nonperforming assets |
$ 163,418 |
$ 188,025 |
(13) % |
$ 160,421 |
$ 177,668 |
$ 139,201 |
17 % |
Loans 90 or more days past due and still accruing |
$ 2,354 |
$ 2,417 |
(3) % |
$ 21,689 |
$ 2,156 |
$ 1,726 |
36 % |
Allowance for credit losses on loans to total loans |
1.32 % |
1.31 % |
1.32 % |
1.26 % |
1.26 % |
||
Allowance for credit losses on loans to nonaccrual loans |
252.31 % |
217.43 % |
258.98 % |
225.78 % |
287.20 % |
||
Nonaccrual loans to total loans |
0.52 % |
0.60 % |
0.51 % |
0.56 % |
0.44 % |
||
Nonperforming assets to total loans plus OREO and |
0.55 % |
0.64 % |
0.55 % |
0.59 % |
0.47 % |
||
Nonperforming assets to total assets |
0.39 % |
0.46 % |
0.39 % |
0.43 % |
0.34 % |
||
Annualized year-to-date net charge offs (recoveries) to |
0.30 % |
0.30 % |
0.16 % |
0.15 % |
0.10 % |
||
Associated Banc-Corp |
|||||||
($ in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
Nonaccrual loans |
|||||||
Commercial and industrial |
$ 21,190 |
$ 72,243 |
(71) % |
$ 62,022 |
$ 74,812 |
$ 34,907 |
(39) % |
Commercial real estate—owner occupied |
1,851 |
2,090 |
(11) % |
1,394 |
3,936 |
1,444 |
28 % |
Commercial and business lending |
23,041 |
74,333 |
(69) % |
63,416 |
78,748 |
36,352 |
(37) % |
Commercial real estate—investor |
48,249 |
18,697 |
158 % |
— |
10,882 |
22,068 |
119 % |
Real estate construction |
16 |
18 |
(11) % |
6 |
103 |
125 |
(87) % |
Commercial real estate lending |
48,265 |
18,715 |
158 % |
6 |
10,985 |
22,193 |
117 % |
Total commercial |
71,306 |
93,047 |
(23) % |
63,422 |
89,732 |
58,544 |
22 % |
Residential mortgage |
68,058 |
69,954 |
(3) % |
71,142 |
66,153 |
61,718 |
10 % |
Auto finance |
6,986 |
7,158 |
(2) % |
5,797 |
4,533 |
3,065 |
128 % |
Home equity |
7,996 |
8,100 |
(1) % |
8,508 |
7,917 |
7,788 |
3 % |
Other consumer |
77 |
87 |
(11) % |
128 |
222 |
163 |
(53) % |
Total consumer |
83,117 |
85,299 |
(3) % |
85,574 |
78,826 |
72,733 |
14 % |
Total nonaccrual loans |
$ 154,423 |
$ 178,346 |
(13) % |
$ 148,997 |
$ 168,558 |
$ 131,278 |
18 % |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
|
Restructured loans (accruing) |
|||||||
Commercial and industrial |
$ 410 |
$ 377 |
9 % |
$ 306 |
$ 234 |
$ 168 |
144 % |
Commercial real estate—owner occupied |
— |
— |
N/M |
— |
— |
— |
N/M |
Commercial and business lending |
410 |
377 |
9 % |
306 |
234 |
168 |
144 % |
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 |
410 |
377 |
9 % |
306 |
234 |
168 |
144 % |
Residential mortgage |
306 |
345 |
(11) % |
405 |
207 |
126 |
143 % |
Auto finance |
142 |
66 |
115 % |
255 |
169 |
80 |
78 % |
Home equity |
103 |
182 |
(43) % |
305 |
236 |
78 |
32 % |
Other consumer |
1,615 |
1,487 |
9 % |
1,449 |
1,243 |
988 |
63 % |
Total consumer |
2,166 |
2,080 |
4 % |
2,414 |
1,855 |
1,271 |
70 % |
Total restructured loans (accruing) |
$ 2,576 |
$ 2,457 |
5 % |
$ 2,719 |
$ 2,089 |
$ 1,439 |
79 % |
Nonaccrual restructured loans (included in |
$ 717 |
$ 1,141 |
(37) % |
$ 805 |
$ 961 |
$ 796 |
(10) % |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
|
Accruing loans 30-89 days past due |
|||||||
Commercial and industrial |
$ 2,052 |
$ 521 |
N/M |
$ 5,565 |
$ 1,507 |
$ 12,005 |
(83) % |
Commercial real estate—owner occupied |
— |
— |
N/M |
358 |
1,877 |
1,484 |
(100) % |
Commercial and business lending |
2,052 |
521 |
N/M |
5,923 |
3,384 |
13,489 |
(85) % |
Commercial real estate—investor |
1,023 |
19,164 |
(95) % |
18,697 |
10,121 |
— |
N/M |
Real estate construction |
— |
1,260 |
(100) % |
— |
10 |
76 |
(100) % |
Commercial real estate lending |
1,023 |
20,424 |
(95) % |
18,697 |
10,131 |
76 |
N/M |
Total commercial |
3,075 |
20,945 |
(85) % |
24,619 |
13,515 |
13,565 |
(77) % |
Residential mortgage |
10,374 |
9,903 |
5 % |
13,446 |
11,652 |
8,961 |
16 % |
Auto finance |
15,814 |
12,521 |
26 % |
17,386 |
16,688 |
11,429 |
38 % |
Home equity |
3,694 |
2,819 |
31 % |
4,208 |
3,687 |
4,030 |
(8) % |
Other consumer |
1,995 |
2,260 |
(12) % |
2,166 |
1,880 |
2,025 |
(1) % |
Total consumer |
31,877 |
27,503 |
16 % |
37,205 |
33,908 |
26,444 |
21 % |
Total accruing loans 30-89 days past due |
$ 34,952 |
$ 48,448 |
(28) % |
$ 61,825 |
$ 47,422 |
$ 40,008 |
(13) % |
N/M = Not meaningful |
Numbers may not sum due to rounding. |
Associated Banc-Corp |
|||||||||
Three Months Ended |
|||||||||
June 30, 2024 |
March 31, 2024 |
June 30, 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 |
$ 11,011,228 |
$ 198,191 |
7.24 % |
$ 10,816,255 |
$ 194,090 |
7.22 % |
$ 10,899,337 |
$ 184,080 |
6.77 % |
Commercial real estate lending |
7,249,773 |
134,203 |
7.45 % |
7,389,962 |
138,850 |
7.56 % |
7,295,367 |
127,967 |
7.04 % |
Total commercial |
18,261,000 |
332,394 |
7.32 % |
18,206,217 |
332,940 |
7.35 % |
18,194,703 |
312,047 |
6.88 % |
Residential mortgage |
7,905,236 |
69,389 |
3.51 % |
7,896,956 |
68,787 |
3.48 % |
8,701,496 |
72,056 |
3.31 % |
Auto finance |
2,524,107 |
35,021 |
5.58 % |
2,373,720 |
32,603 |
5.52 % |
1,654,523 |
19,701 |
4.78 % |
Other retail |
889,220 |
20,504 |
9.24 % |
892,128 |
20,661 |
9.28 % |
887,574 |
20,135 |
9.08 % |
Total loans |
29,579,564 |
457,307 |
6.21 % |
29,369,022 |
454,991 |
6.22 % |
29,438,297 |
423,939 |
5.77 % |
Investment securities |
|||||||||
Taxable |
5,680,757 |
50,479 |
3.55 % |
5,517,023 |
46,727 |
3.39 % |
5,304,381 |
35,845 |
2.70 % |
Tax-exempt(a) |
2,116,174 |
17,896 |
3.38 % |
2,133,352 |
18,024 |
3.38 % |
2,314,825 |
20,152 |
3.48 % |
Other short-term investments |
620,943 |
9,304 |
6.03 % |
576,782 |
8,311 |
5.80 % |
511,487 |
6,086 |
4.77 % |
Investments and other |
8,417,874 |
77,680 |
3.69 % |
8,227,158 |
73,062 |
3.55 % |
8,130,693 |
62,083 |
3.05 % |
Total earning assets |
37,997,438 |
$ 534,987 |
5.65 % |
37,596,179 |
$ 528,053 |
5.64 % |
37,568,991 |
$ 486,022 |
5.18 % |
Other assets, net |
3,103,168 |
3,173,027 |
2,989,321 |
||||||
Total assets |
$ 41,100,606 |
$ 40,769,206 |
$ 40,558,311 |
||||||
Liabilities and stockholders' equity |
|||||||||
Interest-bearing liabilities |
|||||||||
Interest-bearing deposits |
|||||||||
Savings |
$ 5,133,688 |
$ 21,972 |
1.72 % |
$ 4,928,031 |
$ 21,747 |
1.77 % |
$ 4,749,808 |
$ 15,160 |
1.28 % |
Interest-bearing demand |
7,265,621 |
48,109 |
2.66 % |
7,490,119 |
49,990 |
2.68 % |
6,663,775 |
34,961 |
2.10 % |
Money market |
5,995,005 |
46,391 |
3.11 % |
6,116,604 |
47,306 |
3.11 % |
6,743,810 |
43,529 |
2.59 % |
Network transaction deposits |
1,595,312 |
21,416 |
5.40 % |
1,651,937 |
22,205 |
5.41 % |
1,468,006 |
18,426 |
5.03 % |
Time deposits |
6,927,663 |
83,173 |
4.83 % |
7,198,315 |
84,983 |
4.75 % |
4,985,949 |
50,119 |
4.03 % |
Total interest-bearing deposits |
26,917,289 |
221,062 |
3.30 % |
27,385,005 |
226,231 |
3.32 % |
24,611,348 |
162,196 |
2.64 % |
Federal funds purchased and securities |
213,921 |
2,303 |
4.33 % |
263,979 |
2,863 |
4.36 % |
285,754 |
2,261 |
3.17 % |
Other short-term funding |
561,596 |
7,044 |
5.04 % |
449,999 |
5,603 |
5.01 % |
12,179 |
— |
0.01 % |
FHLB advances |
2,432,195 |
34,143 |
5.65 % |
1,540,247 |
21,671 |
5.66 % |
3,796,106 |
49,261 |
5.20 % |
Long-term funding |
533,670 |
10,096 |
7.57 % |
539,106 |
10,058 |
7.46 % |
543,003 |
9,596 |
7.07 % |
Total short and long-term funding |
3,741,381 |
53,586 |
5.75 % |
2,793,331 |
40,194 |
5.78 % |
4,637,042 |
61,118 |
5.28 % |
Total interest-bearing liabilities |
30,658,670 |
$ 274,648 |
3.60 % |
30,178,337 |
$ 266,425 |
3.55 % |
29,248,389 |
$ 223,314 |
3.06 % |
Noninterest-bearing demand deposits |
5,712,115 |
5,882,052 |
6,669,787 |
||||||
Other liabilities |
563,616 |
527,437 |
511,074 |
||||||
Stockholders' equity |
4,166,204 |
4,181,381 |
4,129,061 |
||||||
Total liabilities and stockholders' equity |
$ 41,100,606 |
$ 40,769,206 |
$ 40,558,311 |
||||||
Interest rate spread |
2.05 % |
2.09 % |
2.12 % |
||||||
Net free funds |
0.70 % |
0.70 % |
0.68 % |
||||||
Fully tax-equivalent net interest income |
$ 260,340 |
2.75 % |
$ 261,628 |
2.79 % |
$ 262,708 |
2.80 % |
|||
Fully tax-equivalent adjustment |
3,747 |
3,770 |
4,791 |
||||||
Net interest income |
$ 256,593 |
$ 257,858 |
$ 257,917 |
||||||
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 |
||||||
Six Months Ended June 30, |
||||||
2024 |
2023 |
|||||
($ in thousands) |
Average Balance |
Interest Income /Expense |
Average |
Average Balance |
Interest Income /Expense |
Average |
Assets |
||||||
Earning assets |
||||||
Loans (a) (b) (c) |
||||||
Commercial and business lending |
$ 10,913,741 |
$ 392,281 |
7.23 % |
$ 10,758,464 |
$ 351,254 |
6.58 % |
Commercial real estate lending |
7,319,867 |
273,053 |
7.50 % |
7,273,402 |
247,054 |
6.85 % |
Total commercial |
18,233,608 |
665,334 |
7.34 % |
18,031,866 |
598,308 |
6.69 % |
Residential mortgage |
7,965,375 |
138,120 |
3.47 % |
8,643,335 |
142,767 |
3.30 % |
Auto finance |
2,448,914 |
67,624 |
5.55 % |
1,572,773 |
36,159 |
4.64 % |
Other retail |
826,396 |
41,221 |
10.00 % |
895,720 |
38,629 |
8.65 % |
Total loans |
29,474,293 |
912,299 |
6.22 % |
29,143,694 |
815,864 |
5.64 % |
Investment securities |
||||||
Taxable |
5,598,890 |
97,206 |
3.47 % |
5,109,481 |
65,987 |
2.58 % |
Tax-exempt (a) |
2,124,763 |
35,920 |
3.38 % |
2,322,132 |
40,344 |
3.47 % |
Other short-term investments |
598,888 |
17,615 |
5.91 % |
502,325 |
11,415 |
4.58 % |
Investments and other |
8,322,541 |
150,741 |
3.62 % |
7,933,938 |
117,746 |
2.97 % |
Total earning assets |
37,796,834 |
$ 1,063,040 |
5.65 % |
37,077,632 |
$ 933,610 |
5.06 % |
Other assets, net |
3,135,876 |
3,007,684 |
||||
Total assets |
$ 40,932,710 |
$ 40,085,316 |
||||
Liabilities and stockholders' equity |
||||||
Interest-bearing liabilities |
||||||
Interest-bearing deposits |
||||||
Savings |
$ 5,030,859 |
$ 43,719 |
1.75 % |
$ 4,707,451 |
$ 25,019 |
1.07 % |
Interest-bearing demand |
7,377,870 |
98,099 |
2.67 % |
6,738,715 |
64,880 |
1.94 % |
Money market |
6,055,804 |
93,698 |
3.11 % |
7,137,912 |
85,167 |
2.41 % |
Network transaction deposits |
1,623,625 |
43,621 |
5.40 % |
1,308,434 |
31,252 |
4.82 % |
Time deposits |
7,062,989 |
168,156 |
4.79 % |
3,681,352 |
65,301 |
3.58 % |
Total interest-bearing deposits |
27,151,147 |
447,293 |
3.31 % |
23,573,864 |
271,618 |
2.32 % |
Federal funds purchased and securities sold under agreements to |
238,950 |
5,166 |
4.35 % |
357,369 |
5,404 |
3.05 % |
Other short-term funding |
503,602 |
12,646 |
5.05 % |
14,745 |
1 |
0.01 % |
FHLB advances |
1,986,221 |
55,814 |
5.65 % |
4,024,052 |
99,222 |
4.97 % |
Long-term funding |
536,388 |
20,154 |
7.51 % |
475,961 |
15,876 |
6.67 % |
Total short and long-term funding |
3,265,160 |
93,780 |
5.77 % |
4,872,128 |
120,503 |
4.98 % |
Total interest-bearing liabilities |
30,416,308 |
$ 541,073 |
3.58 % |
28,445,992 |
$ 392,121 |
2.78 % |
Noninterest-bearing demand deposits |
5,797,084 |
7,003,151 |
||||
Other liabilities |
545,526 |
540,457 |
||||
Stockholders' equity |
4,173,793 |
4,095,717 |
||||
Total liabilities and stockholders' equity |
$ 40,932,710 |
$ 40,085,316 |
||||
Interest rate spread |
2.07 % |
2.28 % |
||||
Net free funds |
0.70 % |
0.65 % |
||||
Fully tax-equivalent net interest income and net interest margin |
$ 521,967 |
2.77 % |
$ 541,490 |
2.93 % |
||
Fully tax-equivalent adjustment |
7,516 |
9,563 |
||||
Net interest income |
$ 514,451 |
$ 531,927 |
||||
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 |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
Commercial and industrial |
$ 9,970,412 |
$ 9,858,329 |
1 % |
$ 9,731,555 |
$ 10,099,068 |
$ 10,055,487 |
(1) % |
Commercial real estate—owner occupied |
1,102,146 |
1,095,894 |
1 % |
1,061,700 |
1,054,969 |
1,058,237 |
4 % |
Commercial and business lending |
11,072,558 |
10,954,223 |
1 % |
10,793,255 |
11,154,037 |
11,113,724 |
— % |
Commercial real estate—investor |
5,001,392 |
5,035,195 |
(1) % |
5,124,245 |
5,218,980 |
5,312,928 |
(6) % |
Real estate construction |
2,255,637 |
2,287,041 |
(1) % |
2,271,398 |
2,130,719 |
2,009,060 |
12 % |
Commercial real estate lending |
7,257,029 |
7,322,237 |
(1) % |
7,395,644 |
7,349,699 |
7,321,988 |
(1) % |
Total commercial |
18,329,587 |
18,276,460 |
— % |
18,188,898 |
18,503,736 |
18,435,711 |
(1) % |
Residential mortgage |
7,840,073 |
7,868,180 |
— % |
7,864,891 |
8,782,645 |
8,746,345 |
(10) % |
Auto finance |
2,556,009 |
2,471,257 |
3 % |
2,256,162 |
2,007,164 |
1,777,974 |
44 % |
Home equity |
634,142 |
619,764 |
2 % |
628,526 |
623,650 |
615,506 |
3 % |
Other consumer |
258,460 |
258,603 |
— % |
277,740 |
275,993 |
273,367 |
(5) % |
Total consumer |
11,288,684 |
11,217,802 |
1 % |
11,027,319 |
11,689,451 |
11,413,193 |
(1) % |
Total loans |
$ 29,618,271 |
$ 29,494,263 |
— % |
$ 29,216,218 |
$ 30,193,187 |
$ 29,848,904 |
(1) % |
Period end deposit and customer funding composition |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
Noninterest-bearing demand |
$ 5,815,045 |
$ 6,254,135 |
(7) % |
$ 6,119,956 |
$ 6,422,994 |
$ 6,565,666 |
(11) % |
Savings |
5,157,103 |
5,124,639 |
1 % |
4,835,701 |
4,836,735 |
4,777,415 |
8 % |
Interest-bearing demand |
8,284,017 |
8,747,127 |
(5) % |
8,843,967 |
7,528,154 |
7,037,959 |
18 % |
Money market |
6,294,895 |
6,721,674 |
(6) % |
6,330,453 |
7,268,506 |
7,521,930 |
(16) % |
Brokered CDs |
4,061,578 |
3,931,230 |
3 % |
4,447,479 |
3,351,399 |
3,818,325 |
6 % |
Other time deposits |
3,078,401 |
2,934,352 |
5 % |
2,868,494 |
2,715,538 |
2,293,114 |
34 % |
Total deposits |
32,691,039 |
33,713,158 |
(3) % |
33,446,049 |
32,123,326 |
32,014,409 |
2 % |
Other customer funding(a) |
89,524 |
90,536 |
(1) % |
106,620 |
151,644 |
170,873 |
(48) % |
Total deposits and other customer funding |
$ 32,780,564 |
$ 33,803,694 |
(3) % |
$ 33,552,669 |
$ 32,274,971 |
$ 32,185,282 |
2 % |
Network transaction deposits(b) |
$ 1,502,919 |
$ 1,792,820 |
(16) % |
$ 1,566,139 |
$ 1,649,389 |
$ 1,600,619 |
(6) % |
Net deposits and other customer funding(c) |
$ 27,216,066 |
$ 28,079,644 |
(3) % |
$ 27,539,051 |
$ 27,274,183 |
$ 26,766,338 |
2 % |
Quarter average loan composition |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
Commercial and industrial |
$ 9,915,894 |
$ 9,729,718 |
2 % |
$ 9,768,803 |
$ 9,927,271 |
$ 9,831,956 |
1 % |
Commercial real estate—owner occupied |
1,095,334 |
1,086,537 |
1 % |
1,051,412 |
1,058,313 |
1,067,381 |
3 % |
Commercial and business lending |
11,011,228 |
10,816,255 |
2 % |
10,820,214 |
10,985,584 |
10,899,337 |
1 % |
Commercial real estate—investor |
4,964,394 |
5,041,518 |
(2) % |
5,156,528 |
5,205,626 |
5,206,430 |
(5) % |
Real estate construction |
2,285,379 |
2,348,444 |
(3) % |
2,241,281 |
2,107,018 |
2,088,937 |
9 % |
Commercial real estate lending |
7,249,773 |
7,389,962 |
(2) % |
7,397,809 |
7,312,645 |
7,295,367 |
(1) % |
Total commercial |
18,261,000 |
18,206,217 |
— % |
18,218,024 |
18,298,229 |
18,194,703 |
— % |
Residential mortgage |
7,905,236 |
7,896,956 |
— % |
8,691,258 |
8,807,157 |
8,701,496 |
(9) % |
Auto finance |
2,524,107 |
2,373,720 |
6 % |
2,138,536 |
1,884,540 |
1,654,523 |
53 % |
Home equity |
630,855 |
625,686 |
1 % |
627,736 |
619,423 |
612,045 |
3 % |
Other consumer |
258,366 |
266,443 |
(3) % |
276,881 |
275,262 |
275,530 |
(6) % |
Total consumer |
11,318,564 |
11,162,805 |
1 % |
11,734,412 |
11,586,382 |
11,243,594 |
1 % |
Total loans(d) |
$ 29,579,564 |
$ 29,369,022 |
1 % |
$ 29,952,435 |
$ 29,884,611 |
$ 29,438,297 |
— % |
Quarter average deposit composition |
Jun 30, 2024 |
Mar 31, 2024 |
Seql Qtr % |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Comp Qtr % |
Noninterest-bearing demand |
$ 5,712,115 |
$ 5,882,052 |
(3) % |
$ 6,171,240 |
$ 6,318,781 |
$ 6,669,787 |
(14) % |
Savings |
5,133,688 |
4,928,031 |
4 % |
4,861,913 |
4,814,499 |
4,749,808 |
8 % |
Interest-bearing demand |
7,265,621 |
7,490,119 |
(3) % |
7,156,151 |
6,979,071 |
6,663,775 |
9 % |
Money market |
5,995,005 |
6,116,604 |
(2) % |
6,121,105 |
6,294,083 |
6,743,810 |
(11) % |
Network transaction deposits |
1,595,312 |
1,651,937 |
(3) % |
1,616,719 |
1,639,619 |
1,468,006 |
9 % |
Brokered CDs |
3,927,727 |
4,268,881 |
(8) % |
3,470,516 |
3,428,711 |
3,001,775 |
31 % |
Other time deposits |
2,999,936 |
2,929,434 |
2 % |
2,794,105 |
2,527,030 |
1,984,174 |
51 % |
Total deposits |
32,629,404 |
33,267,057 |
(2) % |
32,191,750 |
32,001,794 |
31,281,134 |
4 % |
Other customer funding(a) |
87,161 |
101,483 |
(14) % |
127,252 |
164,289 |
196,051 |
(56) % |
Total deposits and other customer funding |
$ 32,716,565 |
$ 33,368,540 |
(2) % |
$ 32,319,002 |
$ 32,166,082 |
$ 31,477,186 |
4 % |
Net deposits and other customer funding(c) |
$ 27,193,526 |
$ 27,447,723 |
(1) % |
$ 27,231,767 |
$ 27,097,752 |
$ 27,007,405 |
1 % |
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 |
YTD |
YTD |
|||||
($ in millions, except per share data) |
Jun 2024 |
Jun 2023 |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Selected equity and performance ratios(a)(b)(c) |
|||||||
Tangible common equity / tangible assets |
7.18 % |
7.08 % |
7.11 % |
6.88 % |
6.94 % |
||
Return on average equity |
9.48 % |
9.38 % |
11.16 % |
7.81 % |
(8.74) % |
7.99 % |
8.47 % |
Return on average tangible common equity |
13.78 % |
13.79 % |
16.25 % |
11.31 % |
(13.13) % |
11.67 % |
12.38 % |
Return on average common equity Tier 1 |
12.42 % |
12.11 % |
14.54 % |
10.27 % |
(11.85) % |
10.08 % |
10.88 % |
Return on average tangible assets |
1.01 % |
1.00 % |
1.18 % |
0.84 % |
(0.88) % |
0.84 % |
0.90 % |
Average stockholders' equity / average assets |
10.20 % |
10.22 % |
10.14 % |
10.26 % |
9.97 % |
10.06 % |
10.18 % |
Tangible common equity reconciliation(a) |
|||||||
Common equity |
$ 4,048 |
$ 3,975 |
$ 3,980 |
$ 3,934 |
$ 3,929 |
||
Goodwill and other intangible assets, net |
(1,141) |
(1,143) |
(1,145) |
(1,148) |
(1,150) |
||
Tangible common equity |
$ 2,907 |
$ 2,831 |
$ 2,834 |
$ 2,786 |
$ 2,779 |
||
Tangible assets reconciliation(a) |
|||||||
Total assets |
$ 41,624 |
$ 41,137 |
$ 41,016 |
$ 41,637 |
$ 41,219 |
||
Goodwill and other intangible assets, net |
(1,141) |
(1,143) |
(1,145) |
(1,148) |
(1,150) |
||
Tangible assets |
$ 40,483 |
$ 39,994 |
$ 39,870 |
$ 40,490 |
$ 40,070 |
||
Average tangible common equity and average common equity |
|||||||
Common equity |
$ 3,980 |
$ 3,902 |
$ 3,972 |
$ 3,987 |
$ 3,926 |
$ 3,938 |
$ 3,935 |
Goodwill and other intangible assets, net |
(1,143) |
(1,152) |
(1,142) |
(1,145) |
(1,147) |
(1,149) |
(1,151) |
Tangible common equity |
2,836 |
2,750 |
2,830 |
2,843 |
2,780 |
2,789 |
2,784 |
Modified CECL transitional amount |
22 |
45 |
22 |
22 |
45 |
45 |
45 |
Accumulated other comprehensive loss |
215 |
255 |
242 |
188 |
286 |
302 |
252 |
Deferred tax assets, net |
18 |
28 |
25 |
12 |
27 |
28 |
28 |
Average common equity Tier 1 |
$ 3,092 |
$ 3,077 |
$ 3,118 |
$ 3,065 |
$ 3,138 |
$ 3,164 |
$ 3,108 |
Average tangible assets reconciliation(a) |
|||||||
Total assets |
$ 40,933 |
$ 40,085 |
$ 41,101 |
$ 40,769 |
$ 41,331 |
$ 41,076 |
$ 40,558 |
Goodwill and other intangible assets, net |
(1,143) |
(1,152) |
(1,142) |
(1,145) |
(1,147) |
(1,149) |
(1,151) |
Tangible assets |
$ 39,789 |
$ 38,933 |
$ 39,958 |
$ 39,625 |
$ 40,184 |
$ 39,927 |
$ 39,407 |
Adjusted net income reconciliation(b) |
|||||||
Net income |
$ 197 |
$ 191 |
$ 116 |
$ 81 |
$ (91) |
$ 83 |
$ 87 |
Other intangible amortization, net of tax |
3 |
3 |
2 |
2 |
2 |
2 |
2 |
Adjusted net income |
$ 200 |
$ 194 |
$ 117 |
$ 83 |
$ (89) |
$ 85 |
$ 89 |
Adjusted net income available to common equity |
|||||||
Net income available to common equity |
$ 191 |
$ 185 |
$ 113 |
$ 78 |
$ (94) |
$ 80 |
$ 84 |
Other intangible amortization, net of tax |
3 |
3 |
2 |
2 |
2 |
2 |
2 |
Adjusted net income available to common equity |
$ 194 |
$ 188 |
$ 114 |
$ 80 |
$ (92) |
$ 82 |
$ 86 |
Selected trend information(d) |
|||||||
Wealth management fees |
$ 44 |
$ 41 |
$ 23 |
$ 22 |
$ 21 |
$ 21 |
$ 20 |
Service charges and deposit account fees |
25 |
25 |
12 |
12 |
11 |
13 |
12 |
Card-based fees |
23 |
22 |
12 |
11 |
12 |
12 |
11 |
Other fee-based revenue |
9 |
9 |
5 |
4 |
4 |
5 |
4 |
Fee-based revenue |
102 |
97 |
52 |
50 |
47 |
50 |
49 |
Other |
29 |
31 |
13 |
15 |
(178) |
17 |
17 |
Total noninterest income |
$ 130 |
$ 128 |
$ 65 |
$ 65 |
$ (131) |
$ 67 |
$ 66 |
Pre-tax pre-provision income(e) |
|||||||
Income before income taxes |
$ 204 |
$ 241 |
$ 103 |
$ 101 |
$ (138) |
$ 103 |
$ 111 |
Provision for credit losses |
47 |
40 |
23 |
24 |
21 |
22 |
22 |
Pre-tax pre-provision income |
$ 251 |
$ 281 |
$ 126 |
$ 125 |
$ (117) |
$ 125 |
$ 133 |
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 |
YTD Jun 2024 |
YTD Jun 2023 |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
End of period core customer deposits reconciliation |
|||||||
Total deposits |
$ 32,691 |
$ 33,713 |
$ 33,446 |
$ 32,123 |
$ 32,014 |
||
Network transaction deposits |
(1,503) |
(1,793) |
(1,566) |
(1,649) |
(1,601) |
||
Brokered CDs |
(4,062) |
(3,931) |
(4,447) |
(3,351) |
(3,818) |
||
Core customer deposits |
$ 27,127 |
$ 27,989 |
$ 27,432 |
$ 27,123 |
$ 26,595 |
||
Quarterly average core customer deposits reconciliation |
|||||||
Total deposits |
$ 32,629 |
$ 33,267 |
$ 32,192 |
$ 32,002 |
$ 31,281 |
||
Network transaction deposits |
(1,595) |
(1,652) |
(1,617) |
(1,640) |
(1,468) |
||
Brokered CDs |
(3,928) |
(4,269) |
(3,471) |
(3,429) |
(3,002) |
||
Core customer deposits |
$ 27,106 |
$ 27,346 |
$ 27,105 |
$ 26,933 |
$ 26,811 |
||
Efficiency ratio reconciliation(a) |
|||||||
Federal Reserve efficiency ratio |
61.27 % |
57.26 % |
61.51 % |
61.03 % |
132.01 % |
60.06 % |
58.49 % |
Fully tax-equivalent adjustment |
(0.71) % |
(0.82) % |
(0.71) % |
(0.71) % |
(3.29) % |
(0.89) % |
(0.85) % |
Other intangible amortization |
(0.69) % |
(0.67) % |
(0.68) % |
(0.69) % |
(1.21) % |
(0.69) % |
(0.68) % |
Fully tax-equivalent efficiency ratio |
59.88 % |
55.78 % |
60.12 % |
59.63 % |
127.54 % |
58.50 % |
56.96 % |
FDIC special assessment |
(0.82) % |
— % |
0.73 % |
(2.38) % |
(9.50) % |
— % |
— % |
Announced initiatives |
— % |
— % |
— % |
— % |
(53.92) % |
— % |
— % |
Adjusted efficiency ratio |
59.06 % |
55.78 % |
60.85 % |
57.25 % |
64.12 % |
58.50 % |
56.96 % |
One Time Item Reconciliation |
YTD |
YTD |
|||
($ in millions, except per share data) |
Jun 2024 |
Jun 2024 per share data |
2Q24 |
2Q24 per share data |
|
GAAP net income |
$ 197 |
$ 1.26 |
$ 116 |
$ 0.74 |
|
Tax benefit(b) |
(33) |
(0.22) |
(33) |
(0.22) |
|
Net income, excluding one time item |
164 |
$ 1.04 |
83 |
$ 0.52 |
|
Less preferred stock dividends |
(6) |
(3) |
|||
Net income available to common equity, excluding one time item |
$ 158 |
$ 80 |
One Time Item Noninterest Income Reconciliation |
YTD |
|
($ in thousands) |
4Q23 |
Dec 2023 |
GAAP noninterest income |
$ (131,013) |
$ 63,182 |
Loss on mortgage portfolio sale(c) |
136,239 |
136,239 |
Net loss on sale of investments(c) |
64,940 |
64,940 |
Noninterest income, excluding one time items |
$ 70,166 |
$ 264,361 |
One Time Item Noninterest Expense Reconciliation |
YTD |
|
($ in thousands) |
4Q23 |
Dec 2023 |
GAAP noninterest expense |
$ 239,391 |
$ 813,682 |
FDIC special assessment |
(30,597) |
(30,597) |
Noninterest expense, excluding one time item |
$ 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 tax benefit classified as a one time item is the result of a strategic reallocation of the Corporation's investment securities portfolio which occurred in the second quarter of 2024. |
(c) |
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:
Andrea Kozek, Senior Manager, Public Relations
920-491-7518
SOURCE Associated Banc-Corp
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