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,
2024
|
March 31,
2024
|
Seql Qtr $
Change
|
December 31,
2023
|
September 30,
2023
|
June 30,
2023
|
Comp Qtr $
Change
|
|
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
agreements to resell
|
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
amortized cost
|
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
stocks, at cost
|
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
under agreements to repurchase
|
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
Consolidated Statements of Income (Unaudited) -
Quarterly Trend
|
|
($ 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
under agreements to repurchase
|
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 %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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 %
Change
|
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
repossessed assets
|
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
year-to-date average loans
|
0.30 %
|
0.30 %
|
|
0.16 %
|
0.15 %
|
0.10 %
|
|
|
Associated
Banc-Corp
Selected Asset Quality Information (continued)
|
|
($ in
thousands)
|
Jun 30,
2024
|
Mar 31, 2024
|
Seql Qtr %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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 %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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
nonaccrual loans)
|
$
717
|
$
1,141
|
(37) %
|
$
805
|
$
961
|
$
796
|
(10) %
|
|
Jun 30,
2024
|
Mar 31, 2024
|
Seql Qtr %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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
Net Interest Income Analysis - Fully Tax-Equivalent Basis -
Sequential and Comparable Quarter
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2024
|
March 31,
2024
|
June 30,
2023
|
|
($ in
thousands)
|
Average
Balance
|
Interest
Income /Expense
|
Average
Yield /Rate
|
Average
Balance
|
Interest
Income /Expense
|
Average
Yield /Rate
|
Average
Balance
|
Interest
Income /Expense
|
Average
Yield /Rate
|
|
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
sold under agreements to repurchase
|
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
and net interest margin
|
|
$
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
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year
Over Year
|
|
Six Months Ended June
30,
|
|
2024
|
2023
|
|
($ in
thousands)
|
Average
Balance
|
Interest
Income /Expense
|
Average
Yield / Rate
|
Average
Balance
|
Interest
Income /Expense
|
Average
Yield / Rate
|
|
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
repurchase
|
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 %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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 %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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 %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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 %
Change
|
Dec 31, 2023
|
Sep 30, 2023
|
Jun 30, 2023
|
Comp Qtr %
Change
|
|
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
Tier 1 reconciliation(a)
|
|
|
|
|
|
|
|
|
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
reconciliation(b)
|
|
|
|
|
|
|
|
|
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
(diluted)
|
|
2Q24
|
2Q24 per share data
(diluted)
|
|
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
View original
content:https://www.prnewswire.com/news-releases/associated-banc-corp-reports-second-quarter-2024-earnings-of-0-74-per-common-share-or-0-52-per-common-share1-excluding-a-one-time-item-recognized-during-the-quarter-302207057.html
SOURCE Associated Banc-Corp