Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - ASSOCIATED BANC-CORP | d758346dex992.htm |
| 8-K - 8-K - ASSOCIATED BANC-CORP | d758346d8k.htm |
Exhibit 99.1
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NEWS RELEASE
Investor Contact:
Brian Klaus, Senior Vice President, Director of Investor Relations 920-491-7059
Media Contact:
Cliff Bowers, Senior Vice President, Director of Public Relations 920-491-7542 |
Associated Reports Second Quarter Earnings of $0.28 per share
Loan growth continues to drive results
GREEN BAY, Wis. –– July 17, 2014 –– Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $45 million, or $0.28 per common share, for the quarter ended June 30, 2014. This compares to net income to common shareholders of $44 million, or $0.27 per common share, for the quarter ended March 31, 2014.
“We are pleased to report another quarter of solid results. Our 2014 results continue to be driven by robust loan growth, particularly in our Commercial businesses. We remain focused on expense management and improving operational efficiency,” said President and CEO Philip B. Flynn. “We will continue to be opportunistic in the ways we deploy capital while remaining consistent with our commitment to build long-term shareholder value at Associated.”
HIGHLIGHTS
| • | Average loans grew $482 million, or 3% from the first quarter to $16.6 billion |
| • | Average total commercial loan balances grew $398 million, or 4% from the first quarter, and accounted for the majority of this quarter’s growth |
| • | Included in average total commercial loans, mortgage warehouse balances grew $119 million from the first quarter to $272 million |
| • | Purchased a $99 million participation in the Associated Bank branded credit card portfolio from Elan/US Bank on June 30, 2014 |
| • | Net interest income of $169 million increased $4 million, or 2% from the first quarter, and $9 million, or 5% compared to the year ago quarter |
| • | Core fee-based revenue increased $3 million, or 6% compared to the prior quarter, and increased $5 million, or 10% from the year ago quarter |
| • | Noninterest expenses of $168 million were flat compared to the prior quarter |
| • | Pretax income of $68 million increased $2 million, or 3% from the first quarter |
| • | During the second quarter, the Company repurchased $30 million, or approximately 1.7 million shares, of common stock at an average cost of $17.36 per share |
| • | On July 1, 2014, the Company executed an additional accelerated share repurchase of 1.6 million shares |
| • | Return on Tier 1 common equity was 9.6% for the second quarter |
| • | Capital ratios remain strong with a Tier 1 common equity ratio of 10.72% at June 30, 2014 |
– more –
SECOND QUARTER 2014 FINANCIAL RESULTS
Loans
Average loans of $16.6 billion increased $482 million, or 3% from the first quarter, and have increased $919 million on average or 6%, from the year ago quarter. Total average commercial loans grew $398 million, or 4% from the first quarter, and are up $854 million or 9%, from the year ago quarter. Commercial and business lending average balances grew $338 million, or 6% on a linked-quarter basis. Within commercial and business lending, the mortgage warehouse portfolio grew an average of $119 million during the quarter and accounted for the largest share of the growth. Commercial real estate lending average balances grew by $60 million, or 2% from the first quarter. Total average consumer loans grew $84 million, or 1% from the prior quarter. Residential mortgage average balances grew $151 million, or 4% from the first quarter. Home equity and installment loan average balances declined $67 million during the quarter.
On June 30, 2014, the Company purchased a $99 million participation in the Associated Bank branded credit card portfolio from Elan/US Bank, representing 45% of the total outstanding balance.
Deposits
Second quarter average deposits of $17.2 billion increased $183 million, or 1% compared to the first quarter and are up slightly from the year ago quarter. Money market average balances increased $167 million, or 2% from the first quarter and accounted for the majority of the total average deposit growth. Average time deposits continued to decline during the second quarter, and have declined $310 million, or 16% from the year ago quarter.
Net Interest Income and Net Interest Margin
Second quarter net interest income of $169 million increased $4 million, or 2% compared to the prior quarter and $9 million, or 5% compared to the year ago quarter.
Second quarter net interest margin was 3.08%, a decrease of 4 basis points from the 3.12% reported in the first quarter and a decrease of 8 basis points from a year ago. The decrease from the first quarter was the result of a 5 basis point decline in asset yields which was partially offset by 2 basis points of liability cost management actions. Total funding costs are now at 29 basis points, and total interest-bearing deposit costs are at 19 basis points, for the second quarter.
– more –
Noninterest Income and Expense
Noninterest income for the second quarter was $72 million, down $1 million, or 2% from the first quarter and down $12 million, or 14% from the year ago quarter. The decrease from the year ago quarter was driven by a $14 million decline in net mortgage banking income. Core fee-based revenue increased $3 million, or 6% compared to the prior quarter, and increased $5 million, or 10% from the year ago quarter. All core fee-based revenue categories increased from the first quarter with insurance revenue and service charges accounting for the majority of the growth.
Total noninterest expense for the quarter ended June 30, 2014 was $168 million, essentially flat to the first quarter. The efficiency ratio improved to 68% compared to the prior quarter ratio of 69%. Occupancy expense declined $2 million from the first quarter related to the seasonal decline in contracted services, mainly snow removal. Technology expenses increased $2 million from the previous quarter.
Taxes
Second quarter income taxes of $22 million were up $1 million from the prior quarter. The effective tax rate for the second quarter was 32%.
Credit
Nonaccrual loans were up slightly, to $179 million compared to the first quarter, but are down 18% from a year ago. The ratio of nonaccrual loans to total loans improved from the previous quarter and now stands at 1.05%. Potential problem loans increased $68 million from the prior quarter related to the downgrade of a small number of credits.
Net charge offs of $3 million for the second quarter were down $3 million from the prior quarter, and are down $11 million from the year ago quarter. The second quarter provision for credit losses of $5 million was flat from the prior quarter. The Company’s allowance for loan losses was $272 million, equal to 1.59% of loans and a coverage ratio of 152% of nonaccrual loans at June 30, 2014.
Capital Ratios
The Company’s capital position remains strong, with a Tier 1 common equity ratio of 10.72% at June 30, 2014. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.
– more –
SECOND QUARTER 2014 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 17, 2014. Interested parties can listen to the call live on the internet through the investor relations section of the company’s website, https://www.associatedbank.com/investor or by dialing 877-407-8037. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 201-689-8037. Participants should ask the operator for the Associated Banc-Corp second quarter 2014 earnings call.
An audio archive of the webcast will be available on the company’s website at https://www.associatedbank.com/investor approximately fifteen minutes after the call is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NASDAQ: ASBC) has total assets of $26 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release contains references to measures which are not defined in generally accepted accounting principles (“GAAP”), including “efficiency ratio,” “Tier 1 common equity”, and “core fee-based revenue.” Information concerning these non-GAAP financial measures can be found in the attached tables.
# # #
Associated Banc-Corp
Consolidated Balance Sheets (Unaudited)
| (in thousands) |
June 30, 2014 |
March 31, 2014 |
Seql Qtr $ Change |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
Comp Qtr $ Change |
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| Assets |
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| Cash and due from banks |
$ | 549,883 | $ | 526,951 | $ | 22,932 | $ | 455,482 | $ | 526,009 | $ | 422,779 | $ | 127,104 | ||||||||||||||
| Interest-bearing deposits in other financial institutions |
78,233 | 92,071 | (13,838 | ) | 126,018 | 277,761 | 121,390 | (43,157 | ) | |||||||||||||||||||
| Federal funds sold and securities purchased under agreements to resell |
18,135 | 4,400 | 13,735 | 20,745 | 25,400 | 10,800 | 7,335 | |||||||||||||||||||||
| Securities held to maturity, at amortized cost |
246,050 | 193,759 | 52,291 | 175,210 | 125,095 | 75,946 | 170,104 | |||||||||||||||||||||
| Securities available for sale, at fair value |
5,506,379 | 5,277,908 | 228,471 | 5,250,585 | 4,840,035 | 4,854,319 | 652,060 | |||||||||||||||||||||
| Federal Home Loan Bank and Federal |
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| Reserve Bank stocks, at cost |
186,247 | 181,360 | 4,887 | 181,249 | 181,129 | 181,008 | 5,239 | |||||||||||||||||||||
| Loans held for sale |
78,657 | 46,529 | 32,128 | 64,738 | 102,052 | 203,576 | (124,919 | ) | ||||||||||||||||||||
| Loans |
17,045,052 | 16,441,444 | 603,608 | 15,896,261 | 15,585,854 | 15,746,599 | 1,298,453 | |||||||||||||||||||||
| Allowance for loan losses |
(271,851 | ) | (267,916 | ) | (3,935 | ) | (268,315 | ) | (271,724 | ) | (277,218 | ) | 5,367 | |||||||||||||||
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| Loans, net |
16,773,201 | 16,173,528 | 599,673 | 15,627,946 | 15,314,130 | 15,469,381 | 1,303,820 | |||||||||||||||||||||
| Premises and equipment, net |
264,735 | 269,257 | (4,522 | ) | 270,890 | 265,636 | 258,903 | 5,832 | ||||||||||||||||||||
| Goodwill |
929,168 | 929,168 | — | 929,168 | 929,168 | 929,168 | — | |||||||||||||||||||||
| Other intangible assets, net |
70,538 | 72,629 | (2,091 | ) | 74,464 | 75,730 | 74,612 | (4,074 | ) | |||||||||||||||||||
| Trading assets |
40,630 | 40,822 | (192 | ) | 43,728 | 49,402 | 49,732 | (9,102 | ) | |||||||||||||||||||
| Other assets |
985,930 | 997,815 | (11,885 | ) | 1,006,697 | 977,128 | 965,330 | 20,600 | ||||||||||||||||||||
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| Total assets |
$ | 25,727,786 | $ | 24,806,197 | $ | 921,589 | $ | 24,226,920 | $ | 23,688,675 | $ | 23,616,944 | $ | 2,110,842 | ||||||||||||||
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| Liabilities and Stockholders’ Equity |
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| Noninterest-bearing demand deposits |
$ | 4,211,057 | $ | 4,478,981 | $ | (267,924 | ) | $ | 4,626,312 | $ | 4,453,663 | $ | 4,259,776 | $ | (48,719 | ) | ||||||||||||
| Interest-bearing deposits |
13,105,202 | 13,030,946 | 74,256 | 12,640,855 | 13,884,245 | 12,872,660 | 232,542 | |||||||||||||||||||||
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| Total deposits |
17,316,259 | 17,509,927 | (193,668 | ) | 17,267,167 | 18,337,908 | 17,132,436 | 183,823 | ||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
959,051 | 939,254 | 19,797 | 475,442 | 580,479 | 545,740 | 413,311 | |||||||||||||||||||||
| Other short-term funding |
1,378,120 | 308,652 | 1,069,468 | 265,484 | 1,046,401 | 2,218,760 | (840,640 | ) | ||||||||||||||||||||
| Long-term funding |
2,931,809 | 2,932,040 | (231 | ) | 3,087,267 | 614,568 | 614,822 | 2,316,987 | ||||||||||||||||||||
| Trading liabilities |
43,311 | 43,450 | (139 | ) | 46,470 | 52,430 | 52,598 | (9,287 | ) | |||||||||||||||||||
| Accrued expenses and other liabilities |
169,290 | 171,850 | (2,560 | ) | 193,800 | 184,607 | 175,612 | (6,322 | ) | |||||||||||||||||||
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| Total liabilities |
22,797,840 | 21,905,173 | 892,667 | 21,335,630 | 20,816,393 | 20,739,968 | 2,057,872 | |||||||||||||||||||||
| Stockholders’ Equity |
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| Preferred equity |
61,024 | 61,158 | (134 | ) | 61,862 | 62,737 | 63,272 | (2,248 | ) | |||||||||||||||||||
| Common stock |
1,750 | 1,750 | — | 1,750 | 1,750 | 1,750 | — | |||||||||||||||||||||
| Surplus |
1,628,356 | 1,623,323 | 5,033 | 1,617,990 | 1,614,516 | 1,610,243 | 18,113 | |||||||||||||||||||||
| Retained earnings |
1,432,518 | 1,402,549 | 29,969 | 1,392,508 | 1,361,498 | 1,330,737 | 101,781 | |||||||||||||||||||||
| Accumulated other comprehensive income (loss) |
10,494 | (11,577 | ) | 22,071 | (24,244 | ) | (37,120 | ) | (25,015 | ) | 35,509 | |||||||||||||||||
| Treasury stock |
(204,196 | ) | (176,179 | ) | (28,017 | ) | (158,576 | ) | (131,099 | ) | (104,011 | ) | (100,185 | ) | ||||||||||||||
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| Total stockholders’ equity |
2,929,946 | 2,901,024 | 28,922 | 2,891,290 | 2,872,282 | 2,876,976 | 52,970 | |||||||||||||||||||||
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| Total liabilities and stockholders’ equity |
$ | 25,727,786 | $ | 24,806,197 | $ | 921,589 | $ | 24,226,920 | $ | 23,688,675 | $ | 23,616,944 | $ | 2,110,842 | ||||||||||||||
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Page 1
| Associated Banc-Corp Consolidated Statements of Income (Unaudited)
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| For The Three Months Ended June 30, |
Quarter | For The Six Months Ended June 30, |
Year-to-Date | |||||||||||||||||||||||||||||
| (in thousands, except per share amounts) |
2014 | 2013 | $ Change | % Change |
2014 | 2013 | $ Change | % Change |
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| Interest Income |
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| Interest and fees on loans |
$ | 146,629 | $ | 146,896 | $ | (267 | ) | (0.2 | %) | $ | 290,016 | $ | 292,423 | $ | (2,407 | ) | (0.8 | %) | ||||||||||||||
| Interest and dividends on investment securities: |
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| Taxable |
26,109 | 21,446 | 4,663 | 21.7 | % | 52,366 | 43,059 | 9,307 | 21.6 | % | ||||||||||||||||||||||
| Tax-exempt |
7,030 | 6,785 | 245 | 3.6 | % | 14,001 | 13,750 | 251 | 1.8 | % | ||||||||||||||||||||||
| Other interest |
1,862 | 1,233 | 629 | 51.0 | % | 3,311 | 2,480 | 831 | 33.5 | % | ||||||||||||||||||||||
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| Total interest income |
181,630 | 176,360 | 5,270 | 3.0 | % | 359,694 | 351,712 | 7,982 | 2.3 | % | ||||||||||||||||||||||
| Interest Expense |
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| Interest on deposits |
6,195 | 7,769 | (1,574 | ) | (20.3 | %) | 12,354 | 16,310 | (3,956 | ) | (24.3 | %) | ||||||||||||||||||||
| Interest on Federal funds purchased and securities sold under agreements to repurchase |
306 | 333 | (27 | ) | (8.1 | %) | 611 | 743 | (132 | ) | (17.8 | %) | ||||||||||||||||||||
| Interest on other short-term funding |
280 | 525 | (245 | ) | (46.7 | %) | 396 | 857 | (461 | ) | (53.8 | %) | ||||||||||||||||||||
| Interest on long-term funding |
6,146 | 7,551 | (1,405 | ) | (18.6 | %) | 12,657 | 15,967 | (3,310 | ) | (20.7 | %) | ||||||||||||||||||||
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| Total interest expense |
12,927 | 16,178 | (3,251 | ) | (20.1 | %) | 26,018 | 33,877 | (7,859 | ) | (23.2 | %) | ||||||||||||||||||||
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| Net Interest Income |
168,703 | 160,182 | 8,521 | 5.3 | % | 333,676 | 317,835 | 15,841 | 5.0 | % | ||||||||||||||||||||||
| Provision for credit losses |
5,000 | 5,300 | (300 | ) | (5.7 | %) | 10,000 | 8,600 | 1,400 | 16.3 | % | |||||||||||||||||||||
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| Net interest income after provision for credit losses |
163,703 | 154,882 | 8,821 | 5.7 | % | 323,676 | 309,235 | 14,441 | 4.7 | % | ||||||||||||||||||||||
| Noninterest Income |
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| Trust service fees |
12,017 | 11,405 | 612 | 5.4 | % | 23,728 | 22,315 | 1,413 | 6.3 | % | ||||||||||||||||||||||
| Service charges on deposit accounts |
17,412 | 17,443 | (31 | ) | (0.2 | %) | 33,812 | 34,272 | (460 | ) | (1.3 | %) | ||||||||||||||||||||
| Card-based and other nondeposit fees |
12,577 | 12,591 | (14 | ) | (0.1 | %) | 25,086 | 24,541 | 545 | 2.2 | % | |||||||||||||||||||||
| Insurance commissions |
13,651 | 9,631 | 4,020 | 41.7 | % | 25,968 | 21,394 | 4,574 | 21.4 | % | ||||||||||||||||||||||
| Brokerage and annuity commissions |
4,520 | 3,688 | 832 | 22.6 | % | 8,553 | 7,204 | 1,349 | 18.7 | % | ||||||||||||||||||||||
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| Total core fee-based revenue |
60,177 | 54,758 | 5,419 | 9.9 | % | 117,147 | 109,726 | 7,421 | 6.8 | % | ||||||||||||||||||||||
| Mortgage banking, net |
5,362 | 19,263 | (13,901 | ) | (72.2 | %) | 11,723 | 37,028 | (25,305 | ) | (68.3 | %) | ||||||||||||||||||||
| Capital market fees, net |
2,099 | 5,074 | (2,975 | ) | (58.6 | %) | 4,421 | 7,657 | (3,236 | ) | (42.3 | %) | ||||||||||||||||||||
| Bank owned life insurance income |
3,011 | 3,281 | (270 | ) | (8.2 | %) | 7,331 | 6,251 | 1,080 | 17.3 | % | |||||||||||||||||||||
| Asset gains (losses), net |
899 | (44 | ) | 943 | N/M | 1,627 | 792 | 835 | 105.4 | % | ||||||||||||||||||||||
| Investment securities gains, net |
34 | 34 | — | 0.0 | % | 412 | 334 | 78 | 23.4 | % | ||||||||||||||||||||||
| Other |
665 | 1,944 | (1,279 | ) | (65.8 | %) | 3,107 | 4,522 | (1,415 | ) | (31.3 | %) | ||||||||||||||||||||
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| Total noninterest income |
72,247 | 84,310 | (12,063 | ) | (14.3 | %) | 145,768 | 166,310 | (20,542 | ) | (12.4 | %) | ||||||||||||||||||||
| Noninterest Expense |
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| Personnel expense |
97,793 | 99,791 | (1,998 | ) | (2.0 | %) | 195,491 | 197,698 | (2,207 | ) | (1.1 | %) | ||||||||||||||||||||
| Occupancy |
13,785 | 14,305 | (520 | ) | (3.6 | %) | 29,345 | 29,967 | (622 | ) | (2.1 | %) | ||||||||||||||||||||
| Equipment |
6,227 | 6,462 | (235 | ) | (3.6 | %) | 12,503 | 12,629 | (126 | ) | (1.0 | %) | ||||||||||||||||||||
| Technology |
14,594 | 12,651 | 1,943 | 15.4 | % | 27,318 | 24,159 | 3,159 | 13.1 | % | ||||||||||||||||||||||
| Business development and advertising |
5,077 | 5,028 | 49 | 1.0 | % | 10,139 | 9,565 | 574 | 6.0 | % | ||||||||||||||||||||||
| Other intangible amortization |
991 | 1,011 | (20 | ) | (2.0 | %) | 1,982 | 2,022 | (40 | ) | (2.0 | %) | ||||||||||||||||||||
| Loan expense |
3,620 | 3,044 | 576 | 18.9 | % | 6,407 | 6,328 | 79 | 1.2 | % | ||||||||||||||||||||||
| Legal and professional fees |
4,436 | 5,483 | (1,047 | ) | (19.1 | %) | 8,624 | 10,828 | (2,204 | ) | (20.4 | %) | ||||||||||||||||||||
| Losses other than loans |
381 | 499 | (118 | ) | (23.6 | %) | 925 | 883 | 42 | 4.8 | % | |||||||||||||||||||||
| Foreclosure/OREO expense |
1,575 | 2,302 | (727 | ) | (31.6 | %) | 3,471 | 4,724 | (1,253 | ) | (26.5 | %) | ||||||||||||||||||||
| FDIC expense |
4,945 | 4,395 | 550 | 12.5 | % | 9,946 | 9,827 | 119 | 1.2 | % | ||||||||||||||||||||||
| Other |
14,501 | 13,725 | 776 | 5.7 | % | 29,432 | 27,681 | 1,751 | 6.3 | % | ||||||||||||||||||||||
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| Total noninterest expense |
167,925 | 168,696 | (771 | ) | (0.5 | %) | 335,583 | 336,311 | (728 | ) | (0.2 | %) | ||||||||||||||||||||
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| Income before income taxes |
68,025 | 70,496 | (2,471 | ) | (3.5 | %) | 133,861 | 139,234 | (5,373 | ) | (3.9 | %) | ||||||||||||||||||||
| Income tax expense |
21,660 | 22,608 | (948 | ) | (4.2 | %) | 42,297 | 43,958 | (1,661 | ) | (3.8 | %) | ||||||||||||||||||||
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| Net income |
46,365 | 47,888 | (1,523 | ) | (3.2 | %) | 91,564 | 95,276 | (3,712 | ) | (3.9 | %) | ||||||||||||||||||||
| Preferred stock dividends |
1,278 | 1,300 | (22 | ) | (1.7 | %) | 2,522 | 2,600 | (78 | ) | (3.0 | %) | ||||||||||||||||||||
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| Net income available to common equity |
$ | 45,087 | $ | 46,588 | $ | (1,501 | ) | (3.2 | %) | $ | 89,042 | $ | 92,676 | $ | (3,634 | ) | (3.9 | %) | ||||||||||||||
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|||||||||||||||||||||
| Earnings Per Common Share: |
||||||||||||||||||||||||||||||||
| Basic |
$ | 0.28 | $ | 0.28 | $ | — | 0.0 | % | 0.55 | 0.55 | $ | — | 0.0 | % | ||||||||||||||||||
| Diluted |
$ | 0.28 | $ | 0.28 | $ | — | 0.0 | % | 0.55 | 0.55 | $ | — | 0.0 | % | ||||||||||||||||||
| Average Common Shares Outstanding: |
||||||||||||||||||||||||||||||||
| Basic |
159,940 | 166,605 | (6,665 | ) | (4.0 | %) | 160,699 | 167,415 | (6,716 | ) | (4.0 | %) | ||||||||||||||||||||
| Diluted |
160,838 | 166,748 | (5,910 | ) | (3.5 | %) | 161,513 | 167,552 | (6,039 | ) | (3.6 | %) | ||||||||||||||||||||
|
N/M = Not meaningful |
||||||||||||||||||||||||||||||||
Page 2
Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend
| Sequential Qtr | Comparable Qtr | |||||||||||||||||||||||||||||||||||
| (in thousands, except per share amounts) |
2Q14 | 1Q14 | $ Change | % Change |
4Q13 | 3Q13 | 2Q13 | $ Change | % Change |
|||||||||||||||||||||||||||
| Interest Income |
||||||||||||||||||||||||||||||||||||
| Interest and fees on loans |
$ | 146,629 | $ | 143,387 | $ | 3,242 | 2.3 | % | $ | 148,884 | $ | 146,219 | $ | 146,896 | $ | (267 | ) | (0.2 | %) | |||||||||||||||||
| Interest and dividends on investment securities: |
||||||||||||||||||||||||||||||||||||
| Taxable |
26,109 | 26,257 | (148 | ) | (0.6 | %) | 24,316 | 21,544 | 21,446 | 4,663 | 21.7 | % | ||||||||||||||||||||||||
| Tax-exempt |
7,030 | 6,971 | 59 | 0.8 | % | 6,884 | 6,711 | 6,785 | 245 | 3.6 | % | |||||||||||||||||||||||||
| Other interest |
1,862 | 1,449 | 413 | 28.5 | % | 1,453 | 1,260 | 1,233 | 629 | 51.0 | % | |||||||||||||||||||||||||
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| Total interest income |
181,630 | 178,064 | 3,566 | 2.0 | % | 181,537 | 175,734 | 176,360 | 5,270 | 3.0 | % | |||||||||||||||||||||||||
| Interest Expense |
||||||||||||||||||||||||||||||||||||
| Interest on deposits |
6,195 | 6,159 | 36 | 0.6 | % | 7,340 | 7,617 | 7,769 | (1,574 | ) | (20.3 | %) | ||||||||||||||||||||||||
| Interest on Federal funds purchased and securities sold under agreements to repurchase |
306 | 305 | 1 | 0.3 | % | 271 | 308 | 333 | (27 | ) | (8.1 | %) | ||||||||||||||||||||||||
| Interest on other short-term funding |
280 | 116 | 164 | 141.4 | % | 228 | 434 | 525 | (245 | ) | (46.7 | %) | ||||||||||||||||||||||||
| Interest on long-term funding |
6,146 | 6,511 | (365 | ) | (5.6 | %) | 6,499 | 6,866 | 7,551 | (1,405 | ) | (18.6 | %) | |||||||||||||||||||||||
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|||||||||||||||||||||||
| Total interest expense |
12,927 | 13,091 | (164 | ) | (1.3 | %) | 14,338 | 15,225 | 16,178 | (3,251 | ) | (20.1 | %) | |||||||||||||||||||||||
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|||||||||||||||||||||||
| Net Interest Income |
168,703 | 164,973 | 3,730 | 2.3 | % | 167,199 | 160,509 | 160,182 | 8,521 | 5.3 | % | |||||||||||||||||||||||||
| Provision for credit losses |
5,000 | 5,000 | — | 0.0 | % | 2,300 | (800 | ) | 5,300 | (300 | ) | (5.7 | %) | |||||||||||||||||||||||
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| Net interest income after provision for credit losses |
163,703 | 159,973 | 3,730 | 2.3 | % | 164,899 | 161,309 | 154,882 | 8,821 | 5.7 | % | |||||||||||||||||||||||||
| Noninterest Income |
||||||||||||||||||||||||||||||||||||
| Trust service fees |
12,017 | 11,711 | 306 | 2.6 | % | 11,938 | 11,380 | 11,405 | 612 | 5.4 | % | |||||||||||||||||||||||||
| Service charges on deposit accounts |
17,412 | 16,400 | 1,012 | 6.2 | % | 17,330 | 18,407 | 17,443 | (31 | ) | (0.2 | %) | ||||||||||||||||||||||||
| Card-based and other nondeposit fees |
12,577 | 12,509 | 68 | 0.5 | % | 12,684 | 12,688 | 12,591 | (14 | ) | (0.1 | %) | ||||||||||||||||||||||||
| Insurance commissions |
13,651 | 12,317 | 1,334 | 10.8 | % | 11,274 | 11,356 | 9,631 | 4,020 | 41.7 | % | |||||||||||||||||||||||||
| Brokerage and annuity commissions |
4,520 | 4,033 | 487 | 12.1 | % | 3,881 | 3,792 | 3,688 | 832 | 22.6 | % | |||||||||||||||||||||||||
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|||||||||||||||||||||||
| Total core fee-based revenue |
60,177 | 56,970 | 3,207 | 5.6 | % | 57,107 | 57,623 | 54,758 | 5,419 | 9.9 | % | |||||||||||||||||||||||||
| Mortgage banking, net |
5,362 | 6,361 | (999 | ) | (15.7 | %) | 8,277 | 3,542 | 19,263 | (13,901 | ) | (72.2 | %) | |||||||||||||||||||||||
| Capital market fees, net |
2,099 | 2,322 | (223 | ) | (9.6 | %) | 2,771 | 2,652 | 5,074 | (2,975 | ) | (58.6 | %) | |||||||||||||||||||||||
| Bank owned life insurance income |
3,011 | 4,320 | (1,309 | ) | (30.3 | %) | 2,787 | 2,817 | 3,281 | (270 | ) | (8.2 | %) | |||||||||||||||||||||||
| Asset gains (losses), net |
899 | 728 | 171 | 23.5 | % | 2,687 | 1,934 | (44 | ) | 943 | N/M | |||||||||||||||||||||||||
| Investment securities gains (losses), net |
34 | 378 | (344 | ) | (91.0 | %) | (18 | ) | 248 | 34 | — | 0.0 | % | |||||||||||||||||||||||
| Other |
665 | 2,442 | (1,777 | ) | (72.8 | %) | 2,262 | 2,100 | 1,944 | (1,279 | ) | (65.8 | %) | |||||||||||||||||||||||
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| Total noninterest income |
72,247 | 73,521 | (1,274 | ) | (1.7 | %) | 75,873 | 70,916 | 84,310 | (12,063 | ) | (14.3 | %) | |||||||||||||||||||||||
| Noninterest Expense |
||||||||||||||||||||||||||||||||||||
| Personnel expense |
97,793 | 97,698 | 95 | 0.1 | % | 101,215 | 98,102 | 99,791 | (1,998 | ) | (2.0 | %) | ||||||||||||||||||||||||
| Occupancy |
13,785 | 15,560 | (1,775 | ) | (11.4 | %) | 14,684 | 14,758 | 14,305 | (520 | ) | (3.6 | %) | |||||||||||||||||||||||
| Equipment |
6,227 | 6,276 | (49 | ) | (0.8 | %) | 6,509 | 6,213 | 6,462 | (235 | ) | (3.6 | %) | |||||||||||||||||||||||
| Technology |
14,594 | 12,724 | 1,870 | 14.7 | % | 12,963 | 12,323 | 12,651 | 1,943 | 15.4 | % | |||||||||||||||||||||||||
| Business development and advertising |
5,077 | 5,062 | 15 | 0.3 | % | 7,834 | 5,947 | 5,028 | 49 | 1.0 | % | |||||||||||||||||||||||||
| Other intangible amortization |
991 | 991 | — | 0.0 | % | 1,011 | 1,010 | 1,011 | (20 | ) | (2.0 | %) | ||||||||||||||||||||||||
| Loan expense |
3,620 | 2,787 | 833 | 29.9 | % | 3,677 | 3,157 | 3,044 | 576 | 18.9 | % | |||||||||||||||||||||||||
| Legal and professional fees |
4,436 | 4,188 | 248 | 5.9 | % | 5,916 | 3,482 | 5,483 | (1,047 | ) | (19.1 | %) | ||||||||||||||||||||||||
| Losses other than loans |
381 | 544 | (163 | ) | (30.0 | %) | 1,559 | (600 | ) | 499 | (118 | ) | (23.6 | %) | ||||||||||||||||||||||
| Foreclosure/OREO expense |
1,575 | 1,896 | (321 | ) | (16.9 | %) | 2,829 | 2,515 | 2,302 | (727 | ) | (31.6 | %) | |||||||||||||||||||||||
| FDIC expense |
4,945 | 5,001 | (56 | ) | (1.1 | %) | 4,879 | 4,755 | 4,395 | 550 | 12.5 | % | ||||||||||||||||||||||||
| Other |
14,501 | 14,931 | (430 | ) | (2.9 | %) | 16,091 | 13,509 | 13,725 | 776 | 5.7 | % | ||||||||||||||||||||||||
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| Total noninterest expense |
167,925 | 167,658 | 267 | 0.2 | % | 179,167 | 165,171 | 168,696 | (771 | ) | (0.5 | %) | ||||||||||||||||||||||||
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| Income before income taxes |
68,025 | 65,836 | 2,189 | 3.3 | % | 61,605 | 67,054 | 70,496 | (2,471 | ) | (3.5 | %) | ||||||||||||||||||||||||
| Income tax expense |
21,660 | 20,637 | 1,023 | 5.0 | % | 13,847 | 21,396 | 22,608 | (948 | ) | (4.2 | %) | ||||||||||||||||||||||||
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| Net income |
46,365 | 45,199 | 1,166 | 2.6 | % | 47,758 | 45,658 | 47,888 | (1,523 | ) | (3.2 | %) | ||||||||||||||||||||||||
| Preferred stock dividends |
1,278 | 1,244 | 34 | 2.7 | % | 1,273 | 1,285 | 1,300 | (22 | ) | (1.7 | %) | ||||||||||||||||||||||||
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| Net income available to common equity |
$ | 45,087 | $ | 43,955 | $ | 1,132 | 2.6 | % | $ | 46,485 | $ | 44,373 | $ | 46,588 | $ | (1,501 | ) | (3.2 | %) | |||||||||||||||||
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| Earnings Per Common Share: |
||||||||||||||||||||||||||||||||||||
| Basic |
$ | 0.28 | $ | 0.27 | $ | 0.01 | 3.7 | % | $ | 0.28 | $ | 0.27 | $ | 0.28 | $ | — | 0.0 | % | ||||||||||||||||||
| Diluted |
$ | 0.28 | $ | 0.27 | $ | 0.01 | 3.7 | % | $ | 0.28 | $ | 0.27 | $ | 0.28 | $ | — | 0.0 | % | ||||||||||||||||||
| Average Common Shares Outstanding: |
||||||||||||||||||||||||||||||||||||
| Basic |
159,940 | 161,467 | (1,527 | ) | (0.9 | %) | 162,611 | 164,954 | 166,605 | (6,665 | ) | (4.0 | %) | |||||||||||||||||||||||
| Diluted |
160,838 | 162,188 | (1,350 | ) | (0.8 | %) | 163,235 | 165,443 | 166,748 | (5,910 | ) | (3.5 | %) | |||||||||||||||||||||||
| N/M = Not meaningful. |
||||||||||||||||||||||||||||||||||||
Page 3
Associated Banc-Corp
Selected Quarterly Information
| (in thousands, except per share, full time equivalent |
YTD 2014 | YTD 2013 | 2nd Qtr 2014 | 1st Qtr 2014 | 4th Qtr 2013 | 3rd Qtr 2013 | 2nd Qtr 2013 | |||||||||||||||||||||
| Per Common Share Data |
||||||||||||||||||||||||||||
| Dividends |
$ | 0.18 | $ | 0.16 | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | ||||||||||||||
| Market Value: |
||||||||||||||||||||||||||||
| High |
18.39 | 15.69 | 18.39 | 18.35 | 17.56 | 17.60 | 15.69 | |||||||||||||||||||||
| Low |
15.58 | 13.46 | 16.82 | 15.58 | 15.34 | 15.29 | 13.81 | |||||||||||||||||||||
| Close |
18.08 | 15.55 | 18.08 | 18.06 | 17.40 | 15.49 | 15.55 | |||||||||||||||||||||
| Book value |
17.99 | 16.97 | 17.99 | 17.64 | 17.40 | 17.10 | 16.97 | |||||||||||||||||||||
| Tier 1 common equity / share |
12.04 | 11.42 | 12.04 | 11.88 | 11.77 | 11.59 | 11.42 | |||||||||||||||||||||
| Tangible book value / share |
$ | 12.11 | $ | 11.28 | $ | 12.11 | $ | 11.80 | $ | 11.62 | $ | 11.37 | $ | 11.28 | ||||||||||||||
| Performance Ratios (annualized) |
||||||||||||||||||||||||||||
| Return on average assets |
0.75 | % | 0.83 | % | 0.75 | % | 0.76 | % | 0.80 | % | 0.78 | % | 0.82 | % | ||||||||||||||
| Return on average tangible common equity |
9.51 | 9.78 | 9.56 | 9.45 | 9.87 | 9.48 | 9.76 | |||||||||||||||||||||
| Return on average Tier 1 common equity (1) |
9.52 | 10.00 | 9.56 | 9.38 | 9.78 | 9.31 | 9.94 | |||||||||||||||||||||
| Effective tax rate |
31.60 | 31.57 | 31.84 | 31.35 | 22.48 | 31.91 | 32.07 | |||||||||||||||||||||
| Dividend payout ratio (3) |
32.73 | 29.09 | 32.14 | 33.33 | 32.14 | 29.63 | 28.57 | |||||||||||||||||||||
| Average Balances |
||||||||||||||||||||||||||||
| Common stockholders’ equity |
$ | 2,828,478 | $ | 2,853,995 | $ | 2,830,007 | $ | 2,826,933 | $ | 2,810,130 | $ | 2,799,885 | $ | 2,857,722 | ||||||||||||||
| Average Tier 1 common equity (1) |
$ | 1,885,179 | $ | 1,868,696 | $ | 1,891,766 | $ | 1,899,535 | $ | 1,885,377 | $ | 1,890,398 | $ | 1,880,826 | ||||||||||||||
| Selected Trend Information |
||||||||||||||||||||||||||||
| Average full time equivalent employees |
4,474 | 4,816 | 4,431 | 4,517 | 4,584 | 4,699 | 4,790 | |||||||||||||||||||||
| Trust assets under management, at market value ($ in millions) |
$ | 7,720 | $ | 6,894 | $ | 7,720 | $ | 7,535 | $ | 7,424 | $ | 7,078 | $ | 6,894 | ||||||||||||||
| Total revenue (4) |
$ | 488,757 | $ | 494,231 | $ | 245,607 | $ | 243,150 | $ | 248,110 | $ | 236,373 | $ | 249,488 | ||||||||||||||
| Core fee-based revenue (5) |
$ | 117,147 | $ | 109,726 | $ | 60,177 | $ | 56,970 | $ | 57,107 | $ | 57,623 | $ | 54,758 | ||||||||||||||
| Mortgage loans originated for sale during period |
$ | 479,449 | $ | 1,463,808 | $ | 275,685 | $ | 203,764 | $ | 326,648 | $ | 513,549 | $ | 782,398 | ||||||||||||||
| Mortgage portfolio serviced for others ($ in millions) |
$ | 8,052 | $ | 7,794 | $ | 8,052 | $ | 8,084 | $ | 8,084 | $ | 8,014 | $ | 7,794 | ||||||||||||||
| Mortgage servicing rights, net / Portfolio serviced for others |
0.76 | % | 0.79 | % | 0.76 | % | 0.77 | % | 0.78 | % | 0.79 | % | 0.79 | % | ||||||||||||||
| At Period End |
||||||||||||||||||||||||||||
| Loans / deposits |
98.43 | % | 93.90 | % | 92.06 | % | 84.99 | % | 91.91 | % | ||||||||||||||||||
| Risk weighted assets ($ in millions) (6) (7) |
$ | 17,911 | $ | 17,075 | $ | 16,694 | $ | 16,359 | $ | 16,479 | ||||||||||||||||||
| Tier 1 common equity (1) |
$ | 1,919,651 | $ | 1,912,083 | $ | 1,913,320 | $ | 1,904,060 | $ | 1,893,875 | ||||||||||||||||||
| Stockholders’ equity / assets |
11.39 | % | 11.69 | % | 11.93 | % | 12.13 | % | 12.18 | % | ||||||||||||||||||
| Tangible common equity / tangible assets (8) |
7.79 | % | 7.96 | % | 8.11 | % | 8.21 | % | 8.25 | % | ||||||||||||||||||
| Tangible equity / tangible assets (8) |
8.03 | % | 8.22 | % | 8.38 | % | 8.49 | % | 8.53 | % | ||||||||||||||||||
| Tier 1 common equity / risk-weighted assets (6) (7) |
10.72 | % | 11.20 | % | 11.46 | % | 11.64 | % | 11.49 | % | ||||||||||||||||||
| Tier 1 leverage ratio (6) (7) |
8.26 | % | 8.46 | % | 8.70 | % | 8.76 | % | 8.73 | % | ||||||||||||||||||
| Tier 1 risk-based capital ratio (6) (7) |
11.06 | % | 11.56 | % | 11.83 | % | 12.02 | % | 11.88 | % | ||||||||||||||||||
| Total risk-based capital ratio (6) (7) |
12.31 | % | 12.81 | % | 13.09 | % | 13.44 | % | 13.29 | % | ||||||||||||||||||
| Shares outstanding, end of period |
159,480 | 161,012 | 162,623 | 164,303 | 165,837 | |||||||||||||||||||||||
| Non-GAAP Financial Measures Reconciliation |
||||||||||||||||||||||||||||
| Efficiency ratio (2) |
70.05 | % | 69.51 | % | 69.70 | % | 70.41 | % | 73.70 | % | 71.45 | % | 69.01 | % | ||||||||||||||
| Taxable equivalent adjustment |
(1.34 | ) | (1.42 | ) | (1.32 | ) | (1.35 | ) | (1.49 | ) | (1.50 | ) | (1.38 | ) | ||||||||||||||
| Asset gains (losses), net |
0.24 | 0.12 | 0.26 | 0.22 | 0.80 | 0.59 | (0.01 | ) | ||||||||||||||||||||
| Other intangible amortization |
(0.41 | ) | (0.42 | ) | (0.41 | ) | (0.42 | ) | (0.42 | ) | (0.44 | ) | (0.41 | ) | ||||||||||||||
| Efficiency ratio, fully taxable equivalent (2) |
68.54 | % | 67.79 | % | 68.23 | % | 68.86 | % | 72.59 | % | 70.10 | % | 67.21 | % | ||||||||||||||
| (1) | Tier 1 common equity, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of our capital with the capital of other financial services companies. Management uses Tier 1 common equity, along with other capital measures, to assess and monitor our capital position. Tier 1 common equity (period end and average) is Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities. |
| (2) | Efficiency ratio is defined by the Federal Reserve guidance as noninterest expense divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and asset gains / losses, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and investment securities. Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net). |
| (3) | Ratio is based upon basic earnings per common share. |
| (4) | Total revenue, a non-GAAP financial measure, is the sum of taxable equivalent net interest income, core fee-based revenues, and other noninterest income categories, as presented on Page 2 in the Consolidated Statements of Income and Page 6 in the Net Interest Income Analysis. |
| (5) | Core fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions, as presented on Page 2 in the Consolidated Statements of Income. |
| (6) | June 30, 2014 data is estimated. |
| (7) | The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes similar capital adequacy requirements and standards for the Bank. Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital. The sum of Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital. Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets consist of total assets plus certain off-balance sheet and market items, subject to adjustment for predefined credit risk factors. |
| (8) | Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. |
Page 4
Associated Banc-Corp
Selected Asset Quality Information
| (in thousands) |
Jun 30, 2014 | Mar 31, 2014 | Jun 14 vs Mar 14 % Change |
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Jun 14 vs Jun 13 % Change |
|||||||||||||||||||||
| Allowance for Loan Losses |
||||||||||||||||||||||||||||
| Beginning balance |
$ | 267,916 | $ | 268,315 | (0.1 | %) | $ | 271,724 | $ | 277,218 | $ | 286,923 | (6.6 | %) | ||||||||||||||
| Provision for loan losses |
6,500 | 5,000 | 30.0 | % | 2,000 | — | 4,000 | 62.5 | % | |||||||||||||||||||
| Charge offs |
(9,107 | ) | (11,361 | ) | (19.8 | %) | (18,742 | ) | (20,288 | ) | (21,904 | ) | (58.4 | %) | ||||||||||||||
| Recoveries |
6,542 | 5,962 | 9.7 | % | 13,333 | 14,794 | 8,199 | (20.2 | %) | |||||||||||||||||||
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|||||||||||||||||||
| Net charge offs |
(2,565 | ) | (5,399 | ) | (52.5 | %) | (5,409 | ) | (5,494 | ) | (13,705 | ) | (81.3 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Ending balance |
$ | 271,851 | $ | 267,916 | 1.5 | % | $ | 268,315 | $ | 271,724 | $ | 277,218 | (1.9 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Allowance for Unfunded Commitments |
||||||||||||||||||||||||||||
| Beginning balance |
$ | 21,900 | $ | 21,900 | 0.0 | % | $ | 21,600 | $ | 22,400 | $ | 21,100 | 3.8 | % | ||||||||||||||
| Provision for unfunded commitments |
(1,500 | ) | — | N/M | 300 | (800 | ) | 1,300 | (215.4 | %) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Ending balance |
$ | 20,400 | $ | 21,900 | (6.8 | %) | $ | 21,900 | $ | 21,600 | $ | 22,400 | (8.9 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Allowance for credit losses |
$ | 292,251 | $ | 289,816 | 0.8 | % | $ | 290,215 | $ | 293,324 | $ | 299,618 | (2.5 | %) | ||||||||||||||
Net Charge Offs
| Jun 30, 2014 | Mar 31, 2014 | Jun 14 vs Mar 14 % Change |
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Jun 14 vs Jun 13 % Change |
||||||||||||||||||||||
| Commercial and industrial |
$ | (1,377 | ) | $ | 2,725 | (150.5 | %) | $ | 4,555 | $ | (447 | ) | $ | 1,477 | (193.2 | %) | ||||||||||||
| Commercial real estate - owner occupied |
(550 | ) | (124 | ) | 343.5 | % | 967 | 2,076 | 1,574 | (134.9 | %) | |||||||||||||||||
| Lease financing |
29 | — | N/M | (16 | ) | — | 16 | 81.3 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
(1,898 | ) | 2,601 | (173.0 | %) | 5,506 | 1,629 | 3,067 | (161.9 | %) | ||||||||||||||||||
| Commercial real estate - investor |
(239 | ) | (1,031 | ) | (76.8 | %) | 137 | (414 | ) | 2,999 | (108.0 | %) | ||||||||||||||||
| Real estate construction |
795 | 113 | N/M | (3,130 | ) | (303 | ) | (95 | ) | N/M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
556 | (918 | ) | (160.6 | %) | (2,993 | ) | (717 | ) | 2,904 | (80.9 | %) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
(1,342 | ) | 1,683 | (179.7 | %) | 2,513 | 912 | 5,971 | (122.5 | %) | ||||||||||||||||||
| Home equity revolving lines of credit |
1,380 | 1,182 | 16.8 | % | 966 | 767 | 2,512 | (45.1 | %) | |||||||||||||||||||
| Home equity loans 1st liens |
448 | 406 | 10.3 | % | 372 | 564 | 954 | (53.0 | %) | |||||||||||||||||||
| Home equity loans junior liens |
948 | 859 | 10.4 | % | 1,111 | 800 | 2,034 | (53.4 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
2,776 | 2,447 | 13.4 | % | 2,449 | 2,131 | 5,500 | (49.5 | %) | |||||||||||||||||||
| Installment and credit cards |
247 | 113 | 118.6 | % | (611 | ) | 124 | 66 | 274.2 | % | ||||||||||||||||||
| Residential mortgage |
884 | 1,156 | (23.5 | %) | 1,058 | 2,327 | 2,168 | (59.2 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
3,907 | 3,716 | 5.1 | % | 2,896 | 4,582 | 7,734 | (49.5 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total net charge offs |
$ | 2,565 | $ | 5,399 | (52.5 | %) | $ | 5,409 | $ | 5,494 | $ | 13,705 | (81.3 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net Charge Offs to Average Loans (in basis points) *
|
| |||||||||||||||||||||||||||
| Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||||||||||||||||
| Commercial and industrial |
(10 | ) | 22 | 38 | (4 | ) | 13 | |||||||||||||||||||||
| Commercial real estate - owner occupied |
(20 | ) | (5 | ) | 34 | 72 | 54 | |||||||||||||||||||||
| Lease financing |
22 | — | (12 | ) | — | 12 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
(12 | ) | 17 | 37 | 11 | 21 | ||||||||||||||||||||||
| Commercial real estate - investor |
(3 | ) | (14 | ) | 2 | (6 | ) | 41 | ||||||||||||||||||||
| Real estate construction |
33 | 5 | (145 | ) | (15 | ) | (5 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
6 | (10 | ) | (32 | ) | (8 | ) | 31 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
(5 | ) | 7 | 10 | 4 | 25 | ||||||||||||||||||||||
| Home equity revolving lines of credit |
64 | 55 | 44 | 34 | 112 | |||||||||||||||||||||||
| Home equity loans 1st liens |
26 | 23 | 19 | 27 | 42 | |||||||||||||||||||||||
| Home equity loans junior liens |
196 | 171 | 205 | 140 | 336 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
64 | 55 | 52 | 44 | 108 | |||||||||||||||||||||||
| Installment and credit cards |
25 | 11 | (59 | ) | 11 | 6 | ||||||||||||||||||||||
| Residential mortgage |
9 | 12 | 11 | 25 | 24 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
25 | 25 | 19 | 30 | 50 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total net charge offs |
6 | 14 | 14 | 14 | 35 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Credit Quality
| Jun 30, 2014 | Mar 31, 2014 | Jun 14 vs Mar 14 % Change |
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Jun 14 vs Jun 13 % Change |
||||||||||||||||||||||
| Nonaccrual loans |
$ | 179,226 | $ | 177,978 | 0.7 | % | $ | 185,428 | $ | 207,594 | $ | 217,493 | (17.6 | %) | ||||||||||||||
| Other real estate owned (OREO) |
17,729 | 19,173 | (7.5 | %) | 18,118 | 25,077 | 27,407 | (35.3 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total nonperforming assets |
$ | 196,955 | $ | 197,151 | (0.1 | %) | $ | 203,546 | $ | 232,671 | $ | 244,900 | (19.6 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Loans 90 or more days past due and still accruing |
$ | 1,776 | $ | 723 | 145.6 | % | $ | 2,350 | $ | 2,063 | $ | 1,548 | 14.7 | % | ||||||||||||||
| Allowance for loan losses / loans |
1.59 | % | 1.63 | % | 1.69 | % | 1.74 | % | 1.76 | % | ||||||||||||||||||
| Allowance for loan losses / nonaccrual loans |
151.68 | 150.53 | 144.70 | 130.89 | 127.46 | |||||||||||||||||||||||
| Nonaccrual loans / total loans |
1.05 | 1.08 | 1.17 | 1.33 | 1.38 | |||||||||||||||||||||||
| Nonperforming assets / total loans plus OREO |
1.15 | 1.20 | 1.28 | 1.49 | 1.55 | |||||||||||||||||||||||
| Nonperforming assets / total assets |
0.77 | 0.79 | 0.84 | 0.98 | 1.04 | |||||||||||||||||||||||
| Net charge offs / average loans (annualized) |
0.06 | 0.14 | 0.14 | 0.14 | 0.35 | |||||||||||||||||||||||
| Year-to-date net charge offs / average loans |
0.10 | 0.14 | 0.25 | 0.29 | 0.36 | |||||||||||||||||||||||
| Nonaccrual loans by type: |
||||||||||||||||||||||||||||
| Commercial and industrial |
$ | 40,846 | $ | 38,488 | 6.1 | % | $ | 37,719 | $ | 36,105 | $ | 30,302 | 34.8 | % | ||||||||||||||
| Commercial real estate - owner occupied |
31,725 | 26,735 | 18.7 | % | 29,664 | 28,301 | 24,003 | 32.2 | % | |||||||||||||||||||
| Lease financing |
1,541 | 172 | N/M | 69 | 99 | 72 | N/M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
74,112 | 65,395 | 13.3 | % | 67,452 | 64,505 | 54,377 | 36.3 | % | |||||||||||||||||||
| Commercial real estate - investor |
28,135 | 33,611 | (16.3 | %) | 37,596 | 49,841 | 60,780 | (53.7 | %) | |||||||||||||||||||
| Real estate construction |
6,988 | 6,667 | 4.8 | % | 6,467 | 18,670 | 21,419 | (67.4 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
35,123 | 40,278 | (12.8 | %) | 44,063 | 68,511 | 82,199 | (57.3 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
109,235 | 105,673 | 3.4 | % | 111,515 | 133,016 | 136,576 | (20.0 | %) | |||||||||||||||||||
| Home equity revolving lines of credit |
10,056 | 10,356 | (2.9 | %) | 11,883 | 11,991 | 12,940 | (22.3 | %) | |||||||||||||||||||
| Home equity loans 1st liens |
4,634 | 5,341 | (13.2 | %) | 6,135 | 6,131 | 7,898 | (41.3 | %) | |||||||||||||||||||
| Home equity loans junior liens |
6,183 | 6,788 | (8.9 | %) | 7,149 | 7,321 | 7,296 | (15.3 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
20,873 | 22,485 | (7.2 | %) | 25,167 | 25,443 | 28,134 | (25.8 | %) | |||||||||||||||||||
| Installment and credit cards |
771 | 915 | (15.7 | %) | 1,114 | 1,269 | 1,533 | (49.7 | %) | |||||||||||||||||||
| Residential mortgage |
48,347 | 48,905 | (1.1 | %) | 47,632 | 47,866 | 51,250 | (5.7 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
69,991 | 72,305 | (3.2 | %) | 73,913 | 74,578 | 80,917 | (13.5 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total nonaccrual loans |
$ | 179,226 | $ | 177,978 | 0.7 | % | $ | 185,428 | $ | 207,594 | $ | 217,493 | (17.6 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Annualized. |
N/M = Not meaningful.
Page 5
Associated Banc-Corp
Selected Asset Quality Information (continued)
| (in thousands) |
Jun 30, 2014 | Mar 31, 2014 | Jun 14 vs Mar 14 % Change |
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Jun 14 vs Jun 13 % Change |
|||||||||||||||||||||
| Restructured loans (accruing) |
||||||||||||||||||||||||||||
| Commercial and industrial |
$ | 28,849 | $ | 27,776 | 3.9 | % | $ | 32,517 | $ | 32,145 | $ | 30,970 | (6.8 | %) | ||||||||||||||
| Commercial real estate - owner occupied |
12,168 | 11,579 | 5.1 | % | 13,009 | 14,425 | 14,336 | (15.1 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
41,017 | 39,355 | 4.2 | % | 45,526 | 46,570 | 45,306 | (9.5 | %) | |||||||||||||||||||
| Commercial real estate - investor |
41,758 | 46,020 | (9.3 | %) | 44,946 | 35,073 | 37,299 | 12.0 | % | |||||||||||||||||||
| Real estate construction |
1,224 | 2,954 | (58.6 | %) | 3,793 | 4,825 | 5,365 | (77.2 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
42,982 | 48,974 | (12.2 | %) | 48,739 | 39,898 | 42,664 | 0.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
83,999 | 88,329 | (4.9 | %) | 94,265 | 86,468 | 87,970 | (4.5 | %) | |||||||||||||||||||
| Home equity revolving lines of credit |
1,527 | 1,178 | 29.6 | % | 1,117 | 1,118 | 1,130 | 35.1 | % | |||||||||||||||||||
| Home equity loans 1st liens |
1,674 | 1,656 | 1.1 | % | 1,436 | 1,628 | 1,684 | (0.6 | %) | |||||||||||||||||||
| Home equity loans junior liens |
7,243 | 6,738 | 7.5 | % | 7,080 | 7,113 | 7,119 | 1.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
10,444 | 9,572 | 9.1 | % | 9,633 | 9,859 | 9,933 | 5.1 | % | |||||||||||||||||||
| Installment and credit cards |
1,185 | 225 | 426.7 | % | 246 | 416 | 570 | 107.9 | % | |||||||||||||||||||
| Residential mortgage |
18,753 | 18,798 | (0.2 | %) | 19,841 | 20,300 | 20,593 | (8.9 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
30,382 | 28,595 | 6.2 | % | 29,720 | 30,575 | 31,096 | (2.3 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total restructured loans (accruing) |
$ | 114,381 | $ | 116,924 | (2.2 | %) | $ | 123,985 | $ | 117,043 | $ | 119,066 | (3.9 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Restructured loans in nonaccrual loans (not included above) |
$ | 72,388 | $ | 74,231 | (2.5 | %) | $ | 59,585 | $ | 69,311 | $ | 70,354 | 2.9 | % | ||||||||||||||
Loans Past Due 30-89 Days
| Jun 30, 2014 | Mar 31, 2014 | Jun 14 vs Mar 14 % Change |
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Jun 14 vs Jun 13 % Change |
||||||||||||||||||||||
| Commercial and industrial |
$ | 2,519 | $ | 4,126 | (38.9 | %) | $ | 6,826 | $ | 6,518 | $ | 8,516 | (70.4 | %) | ||||||||||||||
| Commercial real estate - owner occupied |
6,323 | 5,342 | 18.4 | % | 3,106 | 8,505 | 8,105 | (22.0 | %) | |||||||||||||||||||
| Lease financing |
556 | 567 | (1.9 | %) | — | 1,000 | 57 | N/M | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
9,398 | 10,035 | (6.3 | %) | 9,932 | 16,023 | 16,678 | (43.7 | %) | |||||||||||||||||||
| Commercial real estate - investor |
2,994 | 7,188 | (58.3 | %) | 23,215 | 21,747 | 18,269 | (83.6 | %) | |||||||||||||||||||
| Real estate construction |
258 | 679 | (62.0 | %) | 1,954 | 820 | 797 | (67.6 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
3,252 | 7,867 | (58.7 | %) | 25,169 | 22,567 | 19,066 | (82.9 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
12,650 | 17,902 | (29.3 | %) | 35,101 | 38,590 | 35,744 | (64.6 | %) | |||||||||||||||||||
| Home equity revolving lines of credit |
6,986 | 5,344 | 30.7 | % | 6,728 | 6,318 | 7,739 | (9.7 | %) | |||||||||||||||||||
| Home equity loans 1st liens |
1,685 | 1,469 | 14.7 | % | 1,110 | 1,376 | 1,857 | (9.3 | %) | |||||||||||||||||||
| Home equity loans junior liens |
2,138 | 3,006 | (28.9 | %) | 2,842 | 2,206 | 2,709 | (21.1 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
10,809 | 9,819 | 10.1 | % | 10,680 | 9,900 | 12,305 | (12.2 | %) | |||||||||||||||||||
| Installment and credit cards |
1,734 | 1,269 | 36.6 | % | 1,150 | 1,170 | 1,434 | 20.9 | % | |||||||||||||||||||
| Residential mortgage |
7,070 | 4,498 | 57.2 | % | 6,118 | 6,722 | 9,920 | (28.7 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
19,613 | 15,586 | 25.8 | % | 17,948 | 17,792 | 23,659 | (17.1 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total loans past due 30-89 days |
$ | 32,263 | $ | 33,488 | (3.7 | %) | $ | 53,049 | $ | 56,382 | $ | 59,403 | (45.7 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Potential Problem Loans
| Jun 30, 2014 | Mar 31, 2014 | Jun 14 vs Mar 14 % Change |
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Jun 14 vs Jun 13 % Change |
||||||||||||||||||||||
| Commercial and industrial |
$ | 187,251 | $ | 109,027 | 71.7 | % | $ | 113,669 | $ | 112,947 | $ | 127,382 | 47.0 | % | ||||||||||||||
| Commercial real estate - owner occupied |
57,757 | 64,785 | (10.8 | %) | 56,789 | 61,256 | 75,074 | (23.1 | %) | |||||||||||||||||||
| Lease financing |
2,280 | 3,065 | (25.6 | %) | 1,784 | 207 | 279 | N/M | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
247,288 | 176,877 | 39.8 | % | 172,242 | 174,410 | 202,735 | 22.0 | % | |||||||||||||||||||
| Commercial real estate - investor |
31,903 | 34,790 | (8.3 | %) | 52,429 | 87,526 | 89,342 | (64.3 | %) | |||||||||||||||||||
| Real estate construction |
4,473 | 4,870 | (8.2 | %) | 5,263 | 7,540 | 9,184 | (51.3 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
36,376 | 39,660 | (8.3 | %) | 57,692 | 95,066 | 98,526 | (63.1 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
283,664 | 216,537 | 31.0 | % | 229,934 | 269,476 | 301,261 | (5.8 | %) | |||||||||||||||||||
| Home equity revolving lines of credit |
277 | 310 | (10.6 | %) | 303 | 170 | 308 | (10.1 | %) | |||||||||||||||||||
| Home equity loans junior liens |
822 | 741 | 10.9 | % | 1,810 | 2,067 | 2,307 | (64.4 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
1,099 | 1,051 | 4.6 | % | 2,113 | 2,237 | 2,615 | (58.0 | %) | |||||||||||||||||||
| Installment and credit cards |
844 | — | N/M | 50 | 67 | 83 | N/M | |||||||||||||||||||||
| Residential mortgage |
2,445 | 2,091 | 16.9 | % | 3,312 | 5,342 | 5,917 | (58.7 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
4,388 | 3,142 | 39.7 | % | 5,475 | 7,646 | 8,615 | (49.1 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total potential problem loans |
$ | 288,052 | $ | 219,679 | 31.1 | % | $ | 235,409 | $ | 277,122 | $ | 309,876 | (7.0 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
N/M = Not meaningful.
Page 6
Associated Banc-Corp
Net Interest Income Analysis - Taxable Equivalent Basis
Sequential Quarter
| Three months ended June 30, 2014 | Three months ended March 31, 2014 | |||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
| (in thousands) | Balance | Income / Expense | Yield / Rate | Balance | Income / Expense | Yield / Rate | ||||||||||||||||||
| Earning assets: |
||||||||||||||||||||||||
| Loans: (1) (2) (3) |
||||||||||||||||||||||||
| Commercial and business lending |
$ | 6,468,844 | $ | 53,519 | 3.32 | % | $ | 6,131,185 | $ | 51,681 | 3.42 | % | ||||||||||||
| Commercial real estate lending |
3,967,848 | 36,309 | 3.67 | 3,907,363 | 35,591 | 3.69 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total commercial |
10,436,692 | 89,828 | 3.45 | 10,038,548 | 87,272 | 3.52 | ||||||||||||||||||
| Residential mortgage |
4,077,617 | 33,575 | 3.29 | 3,926,734 | 32,664 | 3.33 | ||||||||||||||||||
| Retail |
2,132,080 | 24,157 | 4.54 | 2,199,335 | 24,413 | 4.48 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total loans |
16,646,389 | 147,560 | 3.55 | 16,164,617 | 144,349 | 3.61 | ||||||||||||||||||
| Investment securities (1) |
5,606,279 | 36,865 | 2.63 | 5,450,066 | 36,922 | 2.71 | ||||||||||||||||||
| Other short-term investments |
284,847 | 1,862 | 2.62 | 277,820 | 1,449 | 2.09 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Investments and other |
5,891,126 | 38,727 | 2.63 | 5,727,886 | 38,371 | 2.68 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total earning assets |
22,537,515 | $ | 186,287 | 3.31 | 21,892,503 | $ | 182,720 | 3.36 | ||||||||||||||||
| Other assets, net |
2,320,557 | 2,320,710 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 24,858,072 | $ | 24,213,213 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Savings deposits |
$ | 1,267,297 | $ | 242 | 0.08 | % | $ | 1,195,337 | $ | 220 | 0.07 | % | ||||||||||||
| Interest-bearing demand deposits |
2,894,446 | 969 | 0.13 | 2,796,247 | 823 | 0.12 | ||||||||||||||||||
| Money market deposits |
7,340,244 | 2,928 | 0.16 | 7,173,106 | 2,825 | 0.16 | ||||||||||||||||||
| Time deposits |
1,597,535 | 2,056 | 0.52 | 1,659,277 | 2,291 | 0.56 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing deposits |
13,099,522 | 6,195 | 0.19 | 12,823,967 | 6,159 | 0.19 | ||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
847,756 | 306 | 0.14 | 805,187 | 305 | 0.15 | ||||||||||||||||||
| Other short-term funding |
832,299 | 280 | 0.13 | 328,516 | 116 | 0.14 | ||||||||||||||||||
| Long-term funding |
2,931,957 | 6,146 | 0.84 | 3,004,520 | 6,511 | 0.87 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total short and long-term funding |
4,612,012 | 6,732 | 0.58 | 4,138,223 | 6,932 | 0.67 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing liabilities |
17,711,534 | $ | 12,927 | 0.29 | 16,962,190 | $ | 13,091 | 0.31 | ||||||||||||||||
| Noninterest-bearing demand deposits |
4,073,310 | 4,166,305 | ||||||||||||||||||||||
| Other liabilities |
182,110 | 195,950 | ||||||||||||||||||||||
| Stockholders’ equity |
2,891,118 | 2,888,768 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 24,858,072 | $ | 24,213,213 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net interest income and rate spread |
$ | 173,360 | 3.02 | % | $ | 169,629 | 3.05 | % | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.08 | % | 3.12 | % | ||||||||||||||||||||
| Taxable equivalent adjustment |
$ | 4,657 | $ | 4,656 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
Net Interest Income Analysis - Taxable Equivalent Basis
Comparable Quarter
| Three months ended June 30, 2014 | Three months ended June 30, 2013 | |||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
| (in thousands) | Balance | Income / Expense | Yield / Rate | Balance | Income / Expense | Yield / Rate | ||||||||||||||||||
| Earning assets: |
||||||||||||||||||||||||
| Loans: (1) (2) (3) |
||||||||||||||||||||||||
| Commercial and business lending |
$ | 6,468,844 | $ | 53,519 | 3.32 | % | $ | 5,860,416 | $ | 53,613 | 3.67 | % | ||||||||||||
| Commercial real estate lending |
3,967,848 | 36,309 | 3.67 | 3,722,108 | 35,804 | 3.86 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total commercial |
10,436,692 | 89,828 | 3.45 | 9,582,524 | 89,417 | 3.74 | ||||||||||||||||||
| Residential mortgage |
4,077,617 | 33,575 | 3.29 | 3,661,742 | 30,113 | 3.29 | ||||||||||||||||||
| Retail |
2,132,080 | 24,157 | 4.54 | 2,483,541 | 28,291 | 4.56 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total loans |
16,646,389 | 147,560 | 3.55 | 15,727,807 | 147,821 | 3.77 | ||||||||||||||||||
| Investment securities (1) |
5,606,279 | 36,865 | 2.63 | 4,917,671 | 32,302 | 2.63 | ||||||||||||||||||
| Other short-term investments |
284,847 | 1,862 | 2.62 | 305,766 | 1,233 | 1.61 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Investments and other |
5,891,126 | 38,727 | 2.63 | 5,223,437 | 33,535 | 2.57 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total earning assets |
22,537,515 | $ | 186,287 | 3.31 | 20,951,244 | $ | 181,356 | 3.47 | ||||||||||||||||
| Other assets, net |
2,320,557 | 2,354,976 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 24,858,072 | $ | 23,306,220 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Savings deposits |
$ | 1,267,297 | $ | 242 | 0.08 | % | $ | 1,207,959 | $ | 236 | 0.08 | % | ||||||||||||
| Interest-bearing demand deposits |
2,894,446 | 969 | 0.13 | 2,867,524 | 1,190 | 0.17 | ||||||||||||||||||
| Money market deposits |
7,340,244 | 2,928 | 0.16 | 6,930,554 | 3,239 | 0.19 | ||||||||||||||||||
| Time deposits |
1,597,535 | 2,056 | 0.52 | 1,907,337 | 3,104 | 0.65 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing deposits |
13,099,522 | 6,195 | 0.19 | 12,913,374 | 7,769 | 0.24 | ||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
847,756 | 306 | 0.14 | 677,489 | 333 | 0.20 | ||||||||||||||||||
| Other short-term funding |
832,299 | 280 | 0.13 | 1,631,644 | 525 | 0.13 | ||||||||||||||||||
| Long-term funding |
2,931,957 | 6,146 | 0.84 | 765,514 | 7,551 | 3.95 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total short and long-term funding |
4,612,012 | 6,732 | 0.58 | 3,074,647 | 8,409 | 1.09 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing liabilities |
17,711,534 | $ | 12,927 | 0.29 | 15,988,021 | $ | 16,178 | 0.41 | ||||||||||||||||
| Noninterest-bearing demand deposits |
4,073,310 | 4,191,704 | ||||||||||||||||||||||
| Other liabilities |
182,110 | 205,501 | ||||||||||||||||||||||
| Stockholders’ equity |
2,891,118 | 2,920,994 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 24,858,072 | $ | 23,306,220 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net interest income and rate spread |
$ | 173,360 | 3.02 | % | $ | 165,178 | 3.06 | % | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.08 | % | 3.16 | % | ||||||||||||||||||||
| Taxable equivalent adjustment |
$ | 4,657 | $ | 4,996 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| (1) | The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions. |
| (2) | Nonaccrual loans and loans held for sale have been included in the average balances. |
| (3) | Interest income includes net loan fees. |
Page 7
Associated Banc-Corp
Net Interest Income Analysis - Taxable Equivalent Basis
Year Over Year
| Six months ended June 30, 2014 | Six months ended June 30, 2013 | |||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
| (in thousands) | Balance | Income / Expense | Yield / Rate | Balance | Income / Expense | Yield / Rate | ||||||||||||||||||
| Earning assets: |
||||||||||||||||||||||||
| Loans: (1) (2) (3) |
||||||||||||||||||||||||
| Commercial and business lending |
$ | 6,300,948 | $ | 105,199 | 3.37 | % | $ | 5,738,404 | $ | 104,325 | 3.66 | % | ||||||||||||
| Commercial real estate lending |
3,937,772 | 71,900 | 3.68 | 3,657,667 | 71,668 | 3.95 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total commercial |
10,238,720 | 177,099 | 3.49 | 9,396,071 | 175,993 | 3.77 | ||||||||||||||||||
| Residential mortgage |
4,002,592 | 66,239 | 3.31 | 3,642,207 | 60,595 | 3.33 | ||||||||||||||||||
| Retail |
2,165,522 | 48,570 | 4.51 | 2,550,474 | 57,672 | 4.55 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total loans |
16,406,834 | 291,908 | 3.58 | 15,588,752 | 294,260 | 3.80 | ||||||||||||||||||
| Investment securities (1) |
5,528,604 | 73,788 | 2.67 | 4,904,764 | 65,058 | 2.65 | ||||||||||||||||||
| Other short-term investments |
281,353 | 3,311 | 2.36 | 323,312 | 2,480 | 1.54 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Investments and other |
5,809,957 | 77,099 | 2.65 | 5,228,076 | 67,538 | 2.58 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total earning assets |
22,216,791 | $ | 369,007 | 3.34 | 20,816,828 | $ | 361,798 | 3.49 | ||||||||||||||||
| Other assets, net |
2,320,633 | 2,356,375 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 24,537,424 | $ | 23,173,203 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Savings deposits |
$ | 1,231,516 | $ | 462 | 0.08 | % | $ | 1,175,053 | $ | 444 | 0.08 | % | ||||||||||||
| Interest-bearing demand deposits |
2,845,618 | 1,792 | 0.13 | 2,823,969 | 2,369 | 0.17 | ||||||||||||||||||
| Money market deposits |
7,257,137 | 5,752 | 0.16 | 6,987,134 | 6,854 | 0.20 | ||||||||||||||||||
| Time deposits |
1,628,235 | 4,348 | 0.54 | 1,950,631 | 6,643 | 0.69 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing deposits |
12,962,506 | 12,354 | 0.19 | 12,936,787 | 16,310 | 0.25 | ||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
826,589 | 611 | 0.15 | 728,238 | 743 | 0.21 | ||||||||||||||||||
| Other short-term funding |
581,799 | 396 | 0.14 | 1,326,792 | 857 | 0.13 | ||||||||||||||||||
| Long-term funding |
2,968,038 | 12,657 | 0.85 | 862,627 | 15,967 | 3.71 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total short and long-term funding |
4,376,426 | 13,664 | 0.63 | 2,917,657 | 17,567 | 1.21 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing liabilities |
17,338,932 | $ | 26,018 | 0.30 | 15,854,444 | $ | 33,877 | 0.43 | ||||||||||||||||
| Noninterest-bearing demand deposits |
4,119,551 | 4,188,830 | ||||||||||||||||||||||
| Other liabilities |
188,992 | 212,662 | ||||||||||||||||||||||
| Stockholders’ equity |
2,889,949 | 2,917,267 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 24,537,424 | $ | 23,173,203 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net interest income and rate spread |
$ | 342,989 | 3.04 | % | $ | 327,921 | 3.06 | % | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.10 | % | 3.17 | % | ||||||||||||||||||||
| Taxable equivalent adjustment |
$ | 9,313 | $ | 10,086 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| (1) | The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions. |
| (2) | Nonaccrual loans and loans held for sale have been included in the average balances. |
| (3) | Interest income includes net loan fees. |
Page 8
Associated Banc-Corp
Financial Summary and Comparison
Period End Loan Composition
| Jun 14 vs Mar 14 |
Jun 14 vs Jun 13 |
|||||||||||||||||||||||||||
| Jun 30, 2014 | Mar 31, 2014 | % Change | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | % Change | ||||||||||||||||||||||
| Commercial and industrial |
$ | 5,616,205 | $ | 5,222,141 | 7.5 | % | $ | 4,822,680 | $ | 4,703,056 | $ | 4,752,838 | 18.2 | % | ||||||||||||||
| Commercial real estate - owner occupied |
1,070,463 | 1,098,089 | (2.5 | %) | 1,114,715 | 1,147,352 | 1,174,866 | (8.9 | %) | |||||||||||||||||||
| Lease financing |
51,873 | 52,500 | (1.2 | %) | 55,483 | 51,727 | 55,084 | (5.8 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial and business lending |
6,738,541 | 6,372,730 | 5.7 | % | 5,992,878 | 5,902,135 | 5,982,788 | 12.6 | % | |||||||||||||||||||
| Commercial real estate - investor |
2,990,732 | 3,001,219 | (0.3 | %) | 2,939,456 | 2,847,152 | 3,010,992 | (0.7 | %) | |||||||||||||||||||
| Real estate construction |
1,000,421 | 969,617 | 3.2 | % | 896,248 | 834,744 | 800,569 | 25.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Commercial real estate lending |
3,991,153 | 3,970,836 | 0.5 | % | 3,835,704 | 3,681,896 | 3,811,561 | 4.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial |
10,729,694 | 10,343,566 | 3.7 | % | 9,828,582 | 9,584,031 | 9,794,349 | 9.5 | % | |||||||||||||||||||
| Home equity revolving lines of credit |
866,042 | 856,679 | 1.1 | % | 874,840 | 875,703 | 888,162 | (2.5 | %) | |||||||||||||||||||
| Home equity loans 1st liens |
659,598 | 705,835 | (6.6 | %) | 742,120 | 794,912 | 863,779 | (23.6 | %) | |||||||||||||||||||
| Home equity loans junior liens |
187,732 | 199,488 | (5.9 | %) | 208,054 | 220,763 | 234,292 | (19.9 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Home equity |
1,713,372 | 1,762,002 | (2.8 | %) | 1,825,014 | 1,891,378 | 1,986,233 | (13.7 | %) | |||||||||||||||||||
| Installment and credit cards |
469,203 | 393,321 | 19.3 | % | 407,074 | 420,268 | 434,029 | 8.1 | % | |||||||||||||||||||
| Residential mortgage |
4,132,783 | 3,942,555 | 4.8 | % | 3,835,591 | 3,690,177 | 3,531,988 | 17.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
6,315,358 | 6,097,878 | 3.6 | % | 6,067,679 | 6,001,823 | 5,952,250 | 6.1 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total loans |
$ | 17,045,052 | $ | 16,441,444 | 3.7 | % | $ | 15,896,261 | $ | 15,585,854 | $ | 15,746,599 | 8.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Period End Deposit and Customer Funding Composition | ||||||||||||||||||||||||||||
| Jun 14 vs Mar 14 |
Jun 14 vs Jun 13 |
|||||||||||||||||||||||||||
| Jun 30, 2014 | Mar 31, 2014 | % Change | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | % Change | ||||||||||||||||||||||
| Noninterest-bearing demand |
$ | 4,211,057 | $ | 4,478,981 | (6.0 | %) | $ | 4,626,312 | $ | 4,453,663 | $ | 4,259,776 | (1.1 | %) | ||||||||||||||
| Savings |
1,275,493 | 1,252,669 | 1.8 | % | 1,159,512 | 1,195,944 | 1,211,567 | 5.3 | % | |||||||||||||||||||
| Interest-bearing demand |
2,918,900 | 3,084,457 | (5.4 | %) | 2,889,705 | 2,735,529 | 2,802,277 | 4.2 | % | |||||||||||||||||||
| Money market |
7,348,650 | 7,069,173 | 4.0 | % | 6,906,442 | 8,199,281 | 7,040,317 | 4.4 | % | |||||||||||||||||||
| Brokered CDs |
44,809 | 51,235 | (12.5 | %) | 50,450 | 56,024 | 59,206 | (24.3 | %) | |||||||||||||||||||
| Other time |
1,517,350 | 1,573,412 | (3.6 | %) | 1,634,746 | 1,697,467 | 1,759,293 | (13.8 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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| Total deposits |
17,316,259 | 17,509,927 | (1.1 | %) | 17,267,167 | 18,337,908 | 17,132,436 | 1.1 | % | |||||||||||||||||||
| Customer repo sweeps |
489,886 | 548,179 | (10.6 | %) | 419,247 | 515,555 | 489,700 | 0.0 | % | |||||||||||||||||||
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| Total deposits and customer funding |
$ | 17,806,145 | $ | 18,058,106 | (1.4 | %) | $ | 17,686,414 | $ | 18,853,463 | $ | 17,622,136 | 1.0 | % | ||||||||||||||
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| Network transaction deposits included above in interest-bearing demand and money market |
$ | 2,238,923 | $ | 2,141,976 | 4.5 | % | $ | 1,936,403 | $ | 2,222,810 | $ | 2,135,306 | 4.9 | % | ||||||||||||||
| Brokered CDs |
44,809 | 51,235 | (12.5 | %) | 50,450 | 56,024 | 59,206 | (24.3 | %) | |||||||||||||||||||
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| Total network and brokered funding |
2,283,732 | 2,193,211 | 4.1 | % | 1,986,853 | 2,278,834 | 2,194,512 | 4.1 | % | |||||||||||||||||||
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| Net customer deposits and funding (1) |
$ | 15,522,413 | $ | 15,864,895 | (2.2 | %) | $ | 15,699,561 | $ | 16,574,629 | $ | 15,427,624 | 0.6 | % | ||||||||||||||
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| (1) Total deposits and customer funding excluding total network and brokered funding.
Quarter Average Loan Composition |
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| Jun 14 vs Mar 14 |
Jun 14 vs Jun 13 |
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| Jun 30, 2014 | Mar 31, 2014 | % Change | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | % Change | ||||||||||||||||||||||
| Commercial and industrial |
$ | 5,335,488 | $ | 4,983,943 | 7.1 | % | $ | 4,709,435 | $ | 4,680,582 | $ | 4,635,892 | 15.1 | % | ||||||||||||||
| Commercial real estate - owner occupied |
1,081,552 | 1,093,114 | (1.1 | %) | 1,119,186 | 1,142,919 | 1,169,124 | (7.5 | %) | |||||||||||||||||||
| Lease financing |
51,804 | 54,128 | (4.3 | %) | 53,817 | 53,244 | 55,400 | (6.5 | %) | |||||||||||||||||||
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| Commercial and business lending |
6,468,844 | 6,131,185 | 5.5 | % | 5,882,438 | 5,876,745 | 5,860,416 | 10.4 | % | |||||||||||||||||||
| Commercial real estate - investor |
3,014,827 | 2,993,046 | 0.7 | % | 2,878,176 | 2,940,115 | 2,951,524 | 2.1 | % | |||||||||||||||||||
| Real estate construction |
953,021 | 914,317 | 4.2 | % | 858,138 | 828,780 | 770,584 | 23.7 | % | |||||||||||||||||||
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| Commercial real estate lending |
3,967,848 | 3,907,363 | 1.5 | % | 3,736,314 | 3,768,895 | 3,722,108 | 6.6 | % | |||||||||||||||||||
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| Total commercial |
10,436,692 | 10,038,548 | 4.0 | % | 9,618,752 | 9,645,640 | 9,582,524 | 8.9 | % | |||||||||||||||||||
| Home equity revolving lines of credit |
866,952 | 868,614 | (0.2 | %) | 876,938 | 882,478 | 896,931 | (3.3 | %) | |||||||||||||||||||
| Home equity loans 1st liens |
681,607 | 724,995 | (6.0 | %) | 767,857 | 826,653 | 902,554 | (24.5 | %) | |||||||||||||||||||
| Home equity loans junior liens |
193,727 | 203,984 | (5.0 | %) | 214,557 | 227,021 | 242,796 | (20.2 | %) | |||||||||||||||||||
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| Home equity |
1,742,286 | 1,797,593 | (3.1 | %) | 1,859,352 | 1,936,152 | 2,042,281 | (14.7 | %) | |||||||||||||||||||
| Installment and credit cards |
389,794 | 401,742 | (3.0 | %) | 413,236 | 428,114 | 441,260 | (11.7 | %) | |||||||||||||||||||
| Residential mortgage |
4,077,617 | 3,926,734 | 3.8 | % | 3,856,944 | 3,714,459 | 3,661,742 | 11.4 | % | |||||||||||||||||||
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| Total consumer |
6,209,697 | 6,126,069 | 1.4 | % | 6,129,532 | 6,078,725 | 6,145,283 | 1.0 | % | |||||||||||||||||||
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| Total loans |
$ | 16,646,389 | $ | 16,164,617 | 3.0 | % | $ | 15,748,284 | $ | 15,724,365 | $ | 15,727,807 | 5.8 | % | ||||||||||||||
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| Quarter Average Deposit Composition | ||||||||||||||||||||||||||||
| Jun 14 vs Mar 14 |
Jun 14 vs Jun 13 |
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| Jun 30, 2014 | Mar 31, 2014 | % Change | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | % Change | ||||||||||||||||||||||
| Noninterest-bearing demand |
$ | 4,073,310 | $ | 4,166,305 | (2.2 | %) | $ | 4,353,315 | $ | 4,264,304 | $ | 4,191,704 | (2.8 | %) | ||||||||||||||
| Savings |
1,267,297 | 1,195,337 | 6.0 | % | 1,200,338 | 1,204,743 | 1,207,959 | 4.9 | % | |||||||||||||||||||
| Interest-bearing demand |
2,894,446 | 2,796,247 | 3.5 | % | 2,852,090 | 2,810,962 | 2,867,524 | 0.9 | % | |||||||||||||||||||
| Money market |
7,340,244 | 7,173,106 | 2.3 | % | 7,748,650 | 7,556,050 | 6,930,554 | 5.9 | % | |||||||||||||||||||
| Time deposits |
1,597,535 | 1,659,277 | (3.7 | %) | 1,727,138 | 1,773,760 | 1,907,337 | (16.2 | %) | |||||||||||||||||||
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| Total deposits |
$ | 17,172,832 | $ | 16,990,272 | 1.1 | % | $ | 17,881,531 | $ | 17,609,819 | $ | 17,105,078 | 0.4 | % | ||||||||||||||
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Page 9