GREEN
BAY, Wis., Jan. 25, 2024 /PRNewswire/ -- Associated
Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported
net income available to common equity ("earnings") of $171 million, or $1.13 per common share. These amounts compare to
earnings of $355 million, or
$2.34 per common share, for the year
ended December 31, 2022. For the
quarter ended December 31, 2023, the
Company reported a loss of $94
million, or $(0.62) per common
share. These amounts compare to earnings of $106 million, or $0.70 per common share for the quarter ended
December 31, 2022 and earnings of
$80 million, or $0.53 per common share for the quarter ended
September 30, 2023.
"2023 was an extraordinary year for regional banking," said
President and CEO Andy Harmening.
"Over the course of the year, the industry was tested in several
new ways amid an uncertain macro environment. We addressed the
immediate risks, while our colleagues remained forward looking,
taking great care of our customers while continuing to execute our
people-led, digitally enabled strategy. The results of these
efforts were clearly visible in the back half of the year, with
diversified loan growth, improving household growth metrics, and 3%
core customer deposit1 growth."
"To capitalize on this momentum, we announced the next phase of
our strategic plan during the fourth quarter," Harmening continued.
"This plan advances our strategy by accelerating the impacts of our
initiatives, and importantly, we've already made significant
progress as we enter 2024. We look forward to sharing additional
updates on our progress throughout the year."
2023 SUMMARY (all comparisons to 2022)
- End of period total commercial loans increased $202 million to $18.2
billion
- End of period total consumer loans increased $214 million to $11.0
billion
- End of period total deposits increased $3.8 billion to $33.4
billion
- Net interest income increased $82
million to $1.0 billion
- Noninterest income decreased $219
million to $63 million,
including one time items recognized in 4Q 20232
- Noninterest expense increased $67
million to $814 million,
including one time items recognized in 4Q 20233
- Provision for credit losses was $83
million, compared to a provision of $33 million in 2022
- Net income available to common equity decreased $183 million to $171
million, including one time items recognized in 4Q
20232,3
- Earnings per common share decreased $1.21 to $1.13,
including one time items recognized in 4Q 20232,3
|
|
1
|
This is a non-GAAP
financial measure. See pages 10 and 11 of the attached tables for a
reconciliation of non-GAAP financial measures to GAAP financial
measures.
|
2
|
Noninterest income one
time items include a $136 million loss on a mortgage portfolio sale
and $65 million in investment securities losses associated with the
balance sheet repositioning announced during 4Q 2023.
|
3
|
Noninterest expense one
time items reflect a $31 million expense for the FDIC special
assessment.
|
Loans
Fourth quarter 2023 period end total loans of $29.2 billion decreased 3%, or $977 million, from the prior quarter, driven
primarily by a sale of $969 million
in residential mortgages associated with the balance sheet
repositioning announced during the fourth quarter of 2023. Compared
to the same period last year, period end total loans were up 1%, or
$417 million. With respect to fourth
quarter 2023 period end balances by loan category:
- Commercial and business lending decreased $361 million from the prior quarter and increased
$42 million from the same period last
year to $10.8 billion.
- Commercial real estate lending increased $46 million from the prior quarter and increased
$160 million from the same period
last year to $7.4 billion.
- Total consumer lending decreased $662
million from the prior quarter and increased $214 million from the same period last year to
$11.0 billion.
Fourth quarter 2023 average total loans of $30.0 billion were up $68
million from the prior quarter and were up 6%, or
$1.8 billion, from the same period
last year. With respect to fourth quarter 2023 average balances by
loan category:
- Commercial and business lending decreased $165 million from the prior quarter and increased
$290 million from the same period
last year to $10.8 billion.
- Commercial real estate lending increased $85 million from the prior quarter and increased
$335 million from the same period
last year to $7.4 billion.
- Total consumer lending increased $148
million from the prior quarter and increased $1.1 billion from the same period last year to
$11.7 billion.
Full year 2023 average loans of $29.5
billion were up 13%, or $3.3
billion, from 2022. With respect to full year 2023 average
balances by loan category:
- Commercial and business lending increased $979 million to $10.8
billion.
- Commercial real estate lending increased $719 million to $7.3
billion.
- Total consumer lending increased $1.6
billion to $11.4 billion.
In 2024, we expect total loan growth of 4% to 6% on an end of
period basis as compared to the year ended December 31, 2023.
Deposits
Fourth quarter 2023 period end deposits of $33.4 billion were up 4%, or $1.3 billion, from the prior quarter and were up
13%, or $3.8 billion from the same
period last year. With respect to fourth quarter 2023 period end
balances by deposit category:
- Noninterest-bearing demand deposits decreased $303 million from the prior quarter and decreased
$1.6 billion from the same period
last year to $6.1 billion.
- Savings decreased $1 million from
the prior quarter and increased $231
million from the same period last year to $4.8 billion.
- Interest-bearing demand deposits increased $1.3 billion from the prior quarter and increased
$1.7 billion from the same period
last year to $8.8 billion.
- Money market deposits decreased $938
million from the prior quarter and decreased $1.9 billion from the same period last year to
$6.3 billion.
- Total time deposits increased $1.2
billion from the prior quarter and increased $5.4 billion from the same period last year to
$7.3 billion.
- Network transaction deposits (included in money market and
interest-bearing deposits) decreased $83
million from the prior quarter and increased $587 million from the same period last year to
$1.6 billion.
Fourth quarter 2023 average deposits of $32.2 billion were up 1%, or $190 million, from the prior quarter and were up
10%, or $2.9 billion from the same
period last year. With respect to fourth quarter 2023 average
balances by deposit category:
- Noninterest-bearing demand deposits decreased $148 million from the prior quarter and decreased
$1.9 billion from the same period
last year to $6.2 billion.
- Savings increased $47 million
from the prior quarter and increased $201
million from the same period last year to $4.9 billion.
- Interest-bearing demand deposits increased $177 million from the prior quarter and increased
$325 million from the same period
last year to $7.2 billion.
- Money market deposits decreased $173
million from the prior quarter and decreased $1.3 billion from the same period last year to
$6.1 billion.
- Total time deposits increased $309
million from the prior quarter and increased $4.8 billion from the same period last year to
$6.3 billion.
- Network transaction deposits decreased $23 million from the prior quarter and increased
$716 million from the same period
last year to $1.6 billion.
Full year 2023 average deposits of $31.3
billion were up 9%, or $2.6
billion from 2022. With respect to full year 2023 average
balances by deposit category:
- Noninterest-bearing demand deposits decreased $1.5 billion to $6.6
billion.
- Savings increased $121 million to
$4.8 billion.
- Interest-bearing demand deposits increased $266 million to $6.9
billion.
- Money market deposits decreased $496
million to $6.7 billion.
- Network transaction deposits increased $648 million to $1.5
billion.
- Total time deposits increased $3.6
billion to $4.9 billion.
In 2024, we expect core customer deposit growth of 3% to 5% on
an end of period basis as compared to the year ended December 31, 2023.
Net Interest Income and Net Interest Margin
Full year 2023 net interest income of $1.0 billion was up 9%, or $82 million,
from 2022. Net interest margin of
2.81% decreased 10 basis points from the prior year.
- The average yield on total earning assets increased 178 basis
points from the prior year to 5.25%.
- The average cost of interest-bearing liabilities increased 235
basis points from the prior year to 3.13%.
- The net free funds benefit increased 47 basis points from the
prior year to 0.69%.
Fourth quarter 2023 net interest income of $253 million
decreased $1 million from the prior
quarter. Net interest margin of 2.69% decreased 2 basis points from
the prior quarter. Compared to the same period last year, net
interest income decreased 12%, or $36
million, and the net interest margin decreased 62 basis
points.
- The average yield on total earning assets for the fourth
quarter of 2023 increased 15 basis points from the prior quarter
and increased 105 basis points from the same period last year to
5.51%.
- The average cost of total interest-bearing liabilities for the
fourth quarter of 2023 increased 19 basis points from the prior
quarter and increased 197 basis points from the same period last
year to 3.55%.
- The net free funds benefit for the fourth quarter of 2023
increased 2 basis points from the prior quarter and increased 30
basis points from the same period last year to 0.73%.
We expect total net interest income growth of 2% to 4% in
2024.
Noninterest Income
Full year 2023 noninterest income of $63 million decreased
$219 million from the prior year. The decrease was primarily
driven by one time items associated with the balance sheet
repositioning announced during the fourth quarter of 2023,
including a $136 million loss on a
mortgage portfolio sale and a $65
million net loss on a sale of investments. With respect to
2023 noninterest income line items:
- Investment securities gains (losses), net decreased
$63 million from the prior year,
driven primarily by a $65 million net
loss on a sale of investments associated with the balance sheet
repositioning announced during the fourth quarter of 2023.
- Service charges and deposit account fees decreased $13 million from the prior year.
- Capital markets, net decreased $5
million from the prior year, driven primarily by lower
market activity levels.
- Mortgage banking, net increased $1
million from the prior year.
Fourth quarter 2023 total noninterest income of negative
$131 million decreased $198 million from the prior quarter and decreased
$193 million from the same period
last year. The decrease was primarily driven by one time items
associated with the balance sheet repositioning announced during
the fourth quarter of 2023, including a $136
million loss on a mortgage portfolio sale and a $65 million net loss on a sale of investments.
With respect to fourth quarter 2023 noninterest income line
items:
- Investment securities gains (losses) decreased $59 million from the prior quarter and decreased
$57 million from the same period last
year, driven primarily by a $65
million net loss on a sale of investments associated with
the balance sheet repositioning announced during the fourth quarter
of 2023.
- Mortgage banking, net was $2
million for the fourth quarter, down $5 million from the prior quarter and down
$1 million from the same period last
year.
- Service charges and deposit account fees decreased $2 million from the prior quarter and decreased
$3 million from the same period last
year.
- Capital markets, net increased $4
million from the prior quarter and increased $4 million from the same period last year.
After adjusting to exclude the impact of one time items
associated with the balance sheet repositioning announced during
the fourth quarter of 2023, we expect total noninterest income to
decrease by 0% to 2% in 2024.
Noninterest Expense
Full year 2023 noninterest expense of $814 million
increased 9%, or $67 million, from the prior year, including a
$31 million expense for the FDIC
special assessment that was finalized during the fourth quarter of
2023. With respect to full year 2023 noninterest expense line
items:
- FDIC assessment expense increased $44
million from the prior year, driven primarily by a
$31 million expense for the special
assessment finalized during the fourth quarter of 2023.
- Personnel expense increased $14
million from the prior year, largely driven by increased
merit and benefits expense.
- Technology expense increased $11
million from the prior year, driven by digital investments
tied to our strategic initiatives.
- Business development and advertising increased $3 million from the prior year as business
activity picked up throughout the year.
Fourth quarter 2023 noninterest expense of $239 million increased $43
million from the prior quarter and increased $43 million from the same period last year,
driven primarily by a $31 million
expense for the FDIC special assessment finalized during the fourth
quarter of 2023. With respect to fourth quarter 2023 noninterest
expense line items:
- FDIC assessment expense increased $32
million from the prior quarter and $35 million from the same period last year,
primarily driven by the $31 million
special assessment finalized during the fourth quarter of
2023.
- Personnel expense increased $4
million from the prior quarter and increased $2 million from the same period last year.
- Technology expense increased $2
million from the prior quarter and increased $3 million from the same period last year.
After adjusting to exclude the impact of the FDIC special
assessment, we expect total noninterest expense to grow by 2% to 3%
in 2024.
Taxes
The fourth quarter 2023 had tax benefit of $47 million compared to $19 million of tax expense in the prior quarter
and $25 million of tax expense in the
same period last year, driven primarily by the previously announced
one time items impacting financial results during the fourth
quarter of 2023.
In 2024, we expect the annual effective tax rate to be between
19% and 21%, assuming no change in the corporate tax rate.
Credit
Full year 2023 provision for credit losses was $83 million,
compared to a provision of $33 million in the prior year. The
increase in provision in 2023 was primarily driven by loan growth
related to our strategic initiatives.
The fourth quarter 2023 provision for credit losses was
$21 million, compared to a provision
of $22 million in the prior quarter
and a provision of $20 million in the same period last year.
With respect to fourth quarter 2023 credit quality:
- Nonaccrual loans of $149 million
decreased $20 million, or 12%, from
the prior quarter and increased $38
million, or 34%, from the same period last year. The
nonaccrual loans to total loans ratio was 0.51% in the fourth
quarter, down from 0.56% in the prior quarter and up from 0.39% in
the same period last year.
- Net charge offs of $16 million
decreased $3 million, or 15%, from
the prior quarter and increased $15
million from the same period last year as we began to see
limited credit migration during 2023.
- The allowance for credit losses on loans (ACLL) of $386 million increased $5
million from the prior quarter and increased $34 million from the same period last year. The
ACLL to total loans ratio was 1.32% in the fourth quarter, up from
1.26% in the prior quarter and up from 1.22% in the same period
last year.
In 2024, we 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 9.39% at December 31,
2023. The Company's capital ratios continue to be in excess
of the Basel III "well-capitalized" regulatory benchmarks on a
fully phased in basis.
FOURTH QUARTER 2023 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and
analysts at 4:00 p.m. Central Time
(CT) today, January 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 fourth quarter 2023 earnings call.
The fourth quarter 2023 financial tables with an accompanying slide
presentation will be available on the Company's website just prior
to the call. An audio archive of the webcast will be available on
the Company's website approximately fifteen minutes after the call
is over.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of
$41 billion and is the largest bank
holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading
Midwest banking franchise, offering a full range of financial
products and services from nearly 200 banking locations serving
more than 100 communities throughout Wisconsin, Illinois and Minnesota. The Company also operates loan
production offices in Indiana,
Michigan, Missouri, New
York, Ohio and Texas. Associated Bank, N.A. is an Equal
Housing Lender, Equal Opportunity Lender and Member FDIC. More
information about Associated Banc-Corp is available at
www.associatedbank.com.
FORWARD-LOOKING STATEMENTS
Statements made in this document which are not purely
historical are forward-looking statements, as defined in the
Private Securities Litigation Reform Act of 1995. This includes any
statements regarding management's plans, objectives, or goals for
future operations, products or services, and forecasts of its
revenues, earnings, or other measures of performance. Such
forward-looking statements may be identified by the use of words
such as "believe," "expect," "anticipate," "plan," "estimate,"
"should," "will," "intend," "target," "outlook," "project,"
"guidance," or similar expressions. Forward-looking statements are
based on current management expectations and, by their nature, are
subject to risks and uncertainties. Actual results may differ
materially from those contained in the forward-looking statements.
Factors which may cause actual results to differ materially from
those contained in such forward-looking statements include those
identified in the Company's most recent Form 10-K and subsequent
SEC filings. Such factors are incorporated herein by
reference.
NON-GAAP FINANCIAL MEASURES
This press release and related materials may contain
references to measures which are not defined in generally accepted
accounting principles ("GAAP"). Information concerning these
non-GAAP financial measures can be found in the financial tables.
Management believes these measures are meaningful because they
reflect adjustments commonly made by management, investors,
regulators, and analysts to evaluate the adequacy of earnings per
common share, provide a greater understanding of ongoing operations
and enhance comparability of results with prior periods.
Associated
Banc-Corp
Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
|
|
|
($ in
thousands)
|
December 31,
2023
|
September 30,
2023
|
Seql Qtr $
Change
|
June 30,
2023
|
March 31,
2023
|
December 31,
2022
|
Comp Qtr $
Change
|
Assets
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
484,384
|
$
388,694
|
$ 95,690
|
$
407,620
|
$
311,269
|
$ 436,952
|
$
47,432
|
Interest-bearing
deposits in other financial institutions
|
425,089
|
323,130
|
101,959
|
190,881
|
511,116
|
156,693
|
268,396
|
Federal funds sold and
securities purchased under agreements to resell
|
14,350
|
965
|
13,385
|
31,160
|
455
|
27,810
|
(13,460)
|
Investment securities
available for sale, at fair value
|
3,600,892
|
3,491,679
|
109,213
|
3,504,777
|
3,381,607
|
2,742,025
|
858,867
|
Investment securities
held to maturity, net, at amortized cost
|
3,860,160
|
3,900,415
|
(40,255)
|
3,938,877
|
3,967,058
|
3,960,398
|
(100,238)
|
Equity
securities
|
41,651
|
35,937
|
5,714
|
30,883
|
30,514
|
25,216
|
16,435
|
Federal Home Loan Bank
and Federal Reserve Bank stocks, at cost
|
229,171
|
268,698
|
(39,527)
|
271,637
|
331,420
|
295,496
|
(66,325)
|
Residential loans held
for sale
|
33,011
|
54,790
|
(21,779)
|
38,083
|
35,742
|
20,383
|
12,628
|
Commercial loans held
for sale
|
90,303
|
—
|
90,303
|
15,000
|
33,490
|
—
|
90,303
|
Loans
|
29,216,218
|
30,193,187
|
(976,969)
|
29,848,904
|
29,207,072
|
28,799,569
|
416,649
|
Allowance for loan
losses
|
(351,094)
|
(345,795)
|
(5,299)
|
(338,750)
|
(326,432)
|
(312,720)
|
(38,374)
|
Loans, net
|
28,865,124
|
29,847,392
|
(982,268)
|
29,510,153
|
28,880,640
|
28,486,849
|
378,275
|
Tax credit and other
investments
|
258,067
|
256,905
|
1,162
|
263,583
|
269,269
|
276,773
|
(18,706)
|
Premises and equipment,
net
|
372,978
|
373,017
|
(39)
|
374,866
|
375,540
|
376,906
|
(3,928)
|
Bank and corporate
owned life insurance
|
682,649
|
679,775
|
2,874
|
678,578
|
677,328
|
676,530
|
6,119
|
Goodwill
|
1,104,992
|
1,104,992
|
—
|
1,104,992
|
1,104,992
|
1,104,992
|
—
|
Other intangible
assets, net
|
40,471
|
42,674
|
(2,203)
|
44,877
|
47,079
|
49,282
|
(8,811)
|
Mortgage servicing
rights, net
|
84,390
|
89,131
|
(4,741)
|
80,449
|
74,479
|
77,351
|
7,039
|
Interest
receivable
|
169,569
|
171,119
|
(1,550)
|
159,185
|
152,404
|
144,449
|
25,120
|
Other assets
|
658,604
|
608,068
|
50,536
|
573,870
|
518,115
|
547,621
|
110,983
|
Total
assets
|
$
41,015,855
|
$
41,637,381
|
$ (621,526)
|
$
41,219,473
|
$
40,702,519
|
$ 39,405,727
|
$
1,610,128
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$
6,119,956
|
$ 6,422,994
|
$ (303,038)
|
$
6,565,666
|
$ 7,328,689
|
$
7,760,811
|
$
(1,640,855)
|
Interest-bearing
deposits
|
27,326,093
|
25,700,332
|
1,625,761
|
25,448,743
|
23,003,134
|
21,875,343
|
5,450,750
|
Total
deposits
|
33,446,049
|
32,123,326
|
1,322,723
|
32,014,409
|
30,331,824
|
29,636,154
|
3,809,895
|
Federal funds purchased
and securities sold under agreements to repurchase
|
326,780
|
451,644
|
(124,864)
|
325,927
|
208,398
|
585,139
|
(258,359)
|
Commercial
paper
|
—
|
—
|
—
|
15,327
|
18,210
|
20,798
|
(20,798)
|
FHLB
advances
|
1,940,194
|
3,733,041
|
(1,792,847)
|
3,630,747
|
4,986,138
|
4,319,861
|
(2,379,667)
|
Other long-term
funding
|
541,269
|
529,459
|
11,810
|
534,273
|
544,103
|
248,071
|
293,198
|
Allowance for unfunded
commitments
|
34,776
|
34,776
|
—
|
38,276
|
39,776
|
38,776
|
(4,000)
|
Accrued expenses and
other liabilities
|
552,814
|
637,491
|
(84,677)
|
537,640
|
448,407
|
541,438
|
11,376
|
Total
liabilities
|
36,841,882
|
37,509,738
|
(667,856)
|
37,096,599
|
36,576,856
|
35,390,237
|
1,451,645
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Preferred
equity
|
194,112
|
194,112
|
—
|
194,112
|
194,112
|
194,112
|
—
|
Common
equity
|
3,979,861
|
3,933,531
|
46,330
|
3,928,762
|
3,931,551
|
3,821,378
|
158,483
|
Total stockholders'
equity
|
4,173,973
|
4,127,643
|
46,330
|
4,122,874
|
4,125,663
|
4,015,490
|
158,483
|
Total liabilities and
stockholders' equity
|
$
41,015,855
|
$
41,637,381
|
$ (621,526)
|
$
41,219,473
|
$
40,702,519
|
$ 39,405,727
|
$
1,610,128
|
|
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)
|
4Q23
|
4Q22
|
$ Change
|
% Change
|
Dec
2023
|
Dec 2022
|
$ Change
|
% Change
|
Interest
income
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$ 457,868
|
$ 349,403
|
$ 108,465
|
31 %
|
$
1,720,406
|
$ 992,642
|
$ 727,764
|
73 %
|
Interest and dividends
on investment securities
|
|
|
|
|
|
|
|
|
Taxable
|
41,809
|
21,435
|
20,374
|
95 %
|
146,006
|
75,444
|
70,562
|
94 %
|
Tax-exempt
|
15,273
|
16,666
|
(1,393)
|
(8) %
|
63,233
|
65,691
|
(2,458)
|
(4) %
|
Other
interest
|
10,418
|
3,779
|
6,639
|
176 %
|
28,408
|
11,475
|
16,933
|
148 %
|
Total interest
income
|
525,367
|
391,283
|
134,084
|
34 %
|
1,958,052
|
1,145,252
|
812,800
|
71 %
|
Interest
expense
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
208,875
|
60,719
|
148,156
|
N/M
|
673,624
|
98,309
|
575,315
|
N/M
|
Interest on federal
funds purchased and securities sold under agreements to
repurchase
|
3,734
|
2,280
|
1,454
|
64 %
|
12,238
|
3,480
|
8,758
|
N/M
|
Interest on other
short-term funding
|
—
|
—
|
—
|
N/M
|
1
|
2
|
(1)
|
(50) %
|
Interest on FHLB
Advances
|
49,171
|
36,824
|
12,347
|
34 %
|
196,535
|
75,487
|
121,048
|
160 %
|
Interest on long-term
funding
|
10,185
|
2,470
|
7,715
|
N/M
|
36,080
|
10,653
|
25,427
|
N/M
|
Total interest
expense
|
271,965
|
102,294
|
169,671
|
166 %
|
918,479
|
187,931
|
730,548
|
N/M
|
Net interest
income
|
253,403
|
288,989
|
(35,586)
|
(12) %
|
1,039,573
|
957,321
|
82,252
|
9 %
|
Provision for credit
losses
|
21,007
|
19,992
|
1,015
|
5 %
|
83,021
|
32,998
|
50,023
|
152 %
|
Net interest income
after provision for credit losses
|
232,395
|
268,997
|
(36,602)
|
(14) %
|
956,552
|
924,323
|
32,229
|
3 %
|
Noninterest
income
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
21,003
|
20,403
|
600
|
3 %
|
82,502
|
84,122
|
(1,620)
|
(2) %
|
Service charges and
deposit account fees
|
10,815
|
13,918
|
(3,103)
|
(22) %
|
49,045
|
62,310
|
(13,265)
|
(21) %
|
Card-based
fees
|
11,528
|
11,167
|
361
|
3 %
|
45,020
|
44,014
|
1,006
|
2 %
|
Other fee-based
revenue
|
4,019
|
3,290
|
729
|
22 %
|
17,268
|
15,903
|
1,365
|
9 %
|
Capital markets,
net
|
9,106
|
5,586
|
3,520
|
63 %
|
24,649
|
29,917
|
(5,268)
|
(18) %
|
Mortgage banking,
net
|
1,615
|
2,238
|
(623)
|
(28) %
|
19,429
|
18,873
|
556
|
3 %
|
Loss on mortgage
portfolio sale
|
(136,239)
|
—
|
(136,239)
|
N/M
|
(136,239)
|
—
|
(136,239)
|
N/M
|
Bank and corporate
owned life insurance
|
3,383
|
3,427
|
(44)
|
(1) %
|
10,266
|
11,431
|
(1,165)
|
(10) %
|
Asset gains (losses),
net
|
(136)
|
(545)
|
409
|
(75) %
|
454
|
1,338
|
(884)
|
(66) %
|
Investment securities
gains (losses), net
|
(58,958)
|
(1,930)
|
(57,028)
|
N/M
|
(58,903)
|
3,746
|
(62,649)
|
N/M
|
Other
|
2,850
|
4,102
|
(1,252)
|
(31) %
|
9,691
|
10,715
|
(1,024)
|
(10) %
|
Total noninterest
income (loss)
|
(131,013)
|
61,657
|
(192,670)
|
N/M
|
63,182
|
282,370
|
(219,188)
|
(78) %
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
Personnel
|
120,686
|
118,381
|
2,305
|
2 %
|
468,355
|
454,101
|
14,254
|
3 %
|
Technology
|
28,027
|
25,299
|
2,728
|
11 %
|
102,018
|
90,700
|
11,318
|
12 %
|
Occupancy
|
14,429
|
15,846
|
(1,417)
|
(9) %
|
57,204
|
59,794
|
(2,590)
|
(4) %
|
Business development
and advertising
|
8,350
|
8,136
|
214
|
3 %
|
28,405
|
25,525
|
2,880
|
11 %
|
Equipment
|
4,742
|
4,791
|
(49)
|
(1) %
|
19,663
|
19,632
|
31
|
— %
|
Legal and
professional
|
6,762
|
4,132
|
2,630
|
64 %
|
19,911
|
18,250
|
1,661
|
9 %
|
Loan and foreclosure
costs
|
585
|
804
|
(219)
|
(27) %
|
5,408
|
5,925
|
(517)
|
(9) %
|
FDIC
assessment
|
41,497
|
6,350
|
35,147
|
N/M
|
67,072
|
22,650
|
44,422
|
196 %
|
Other intangible
amortization
|
2,203
|
2,203
|
—
|
— %
|
8,811
|
8,811
|
—
|
— %
|
Other
|
12,110
|
10,618
|
1,492
|
14 %
|
36,837
|
41,675
|
(4,838)
|
(12) %
|
Total noninterest
expense
|
239,391
|
196,560
|
42,831
|
22 %
|
813,682
|
747,063
|
66,619
|
9 %
|
Income (loss) before
income taxes
|
(138,009)
|
134,094
|
(272,103)
|
N/M
|
206,052
|
459,630
|
(253,578)
|
(55) %
|
Income tax expense
(benefit)
|
(47,202)
|
25,332
|
(72,534)
|
N/M
|
23,097
|
93,508
|
(70,411)
|
(75) %
|
Net income
(loss)
|
(90,806)
|
108,762
|
(199,568)
|
N/M
|
182,956
|
366,122
|
(183,166)
|
(50) %
|
Preferred stock
dividends
|
2,875
|
2,875
|
—
|
— %
|
11,500
|
11,500
|
—
|
— %
|
Net income (loss)
available to common equity
|
$ (93,681)
|
$ 105,887
|
$ (199,568)
|
N/M
|
$ 171,456
|
$ 354,622
|
$ (183,166)
|
(52) %
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.63)
|
$
0.70
|
$ (1.33)
|
N/M
|
$
1.14
|
$
2.36
|
$ (1.22)
|
(52) %
|
Diluted
|
$
(0.62)
|
$
0.70
|
$ (1.32)
|
N/M
|
$
1.13
|
$
2.34
|
$ (1.21)
|
(52) %
|
Average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
150,085
|
149,454
|
631
|
— %
|
149,968
|
149,162
|
806
|
1 %
|
Diluted
|
151,007
|
150,886
|
121
|
— %
|
150,860
|
150,496
|
364
|
— %
|
|
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
|
4Q23
|
3Q23
|
$ Change
|
% Change
|
2Q23
|
1Q23
|
4Q22
|
$ Change
|
% Change
|
Interest
income
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
457,868
|
$
447,912
|
$ 9,956
|
2 %
|
$
423,307
|
$
391,320
|
$
349,403
|
$
108,465
|
31 %
|
Interest and dividends
on investment securities
|
|
|
|
|
|
|
|
|
|
Taxable
|
41,809
|
38,210
|
3,599
|
9 %
|
35,845
|
30,142
|
21,435
|
20,374
|
95 %
|
Tax-exempt
|
15,273
|
15,941
|
(668)
|
(4) %
|
15,994
|
16,025
|
16,666
|
(1,393)
|
(8) %
|
Other
interest
|
10,418
|
6,575
|
3,843
|
58 %
|
6,086
|
5,329
|
3,779
|
6,639
|
176 %
|
Total interest
income
|
525,367
|
508,637
|
16,730
|
3 %
|
481,231
|
442,817
|
391,283
|
134,084
|
34 %
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
208,875
|
193,131
|
15,744
|
8 %
|
162,196
|
109,422
|
60,719
|
148,156
|
N/M
|
Interest on federal
funds purchased and securities sold under agreements to
repurchase
|
3,734
|
3,100
|
634
|
20 %
|
2,261
|
3,143
|
2,280
|
1,454
|
64 %
|
Interest on FHLB
advances
|
49,171
|
48,143
|
1,028
|
2 %
|
49,261
|
49,960
|
36,824
|
12,347
|
34 %
|
Interest on long-term
funding
|
10,185
|
10,019
|
166
|
2 %
|
9,596
|
6,281
|
2,470
|
7,715
|
N/M
|
Total interest
expense
|
271,965
|
254,394
|
17,571
|
7 %
|
223,314
|
168,807
|
102,294
|
169,671
|
166 %
|
Net interest
income
|
253,403
|
254,244
|
(841)
|
— %
|
257,917
|
274,010
|
288,989
|
(35,586)
|
(12) %
|
Provision for credit
losses
|
21,007
|
21,943
|
(936)
|
(4) %
|
22,100
|
17,971
|
19,992
|
1,015
|
5 %
|
Net interest income
after provision for credit losses
|
232,395
|
232,301
|
94
|
— %
|
235,817
|
256,039
|
268,997
|
(36,602)
|
(14) %
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
Wealth management
fees
|
21,003
|
20,828
|
175
|
1 %
|
20,483
|
20,189
|
20,403
|
600
|
3 %
|
Service charges and
deposit account fees
|
10,815
|
12,864
|
(2,049)
|
(16) %
|
12,372
|
12,994
|
13,918
|
(3,103)
|
(22) %
|
Card-based
fees
|
11,528
|
11,510
|
18
|
— %
|
11,396
|
10,586
|
11,167
|
361
|
3 %
|
Other fee-based
revenue
|
4,019
|
4,509
|
(490)
|
(11) %
|
4,465
|
4,276
|
3,290
|
729
|
22 %
|
Capital markets,
net
|
9,106
|
5,368
|
3,738
|
70 %
|
5,093
|
5,083
|
5,586
|
3,520
|
63 %
|
Mortgage banking,
net
|
1,615
|
6,501
|
(4,886)
|
(75) %
|
7,768
|
3,545
|
2,238
|
(623)
|
(28) %
|
Loss on mortgage
portfolio sale
|
(136,239)
|
—
|
(136,239)
|
N/M
|
—
|
—
|
—
|
(136,239)
|
N/M
|
Bank and corporate
owned life insurance
|
3,383
|
2,047
|
1,336
|
65 %
|
2,172
|
2,664
|
3,427
|
(44)
|
(1) %
|
Asset gains (losses),
net
|
(136)
|
625
|
(761)
|
N/M
|
(299)
|
263
|
(545)
|
409
|
(75) %
|
Investment securities
gains (losses), net
|
(58,958)
|
(11)
|
(58,947)
|
N/M
|
14
|
51
|
(1,930)
|
(57,028)
|
N/M
|
Other
|
2,850
|
2,339
|
511
|
22 %
|
2,080
|
2,422
|
4,102
|
(1,252)
|
(31) %
|
Total noninterest
income (loss)
|
(131,013)
|
66,579
|
(197,592)
|
N/M
|
65,543
|
62,073
|
61,657
|
(192,670)
|
N/M
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
Personnel
|
120,686
|
117,159
|
3,527
|
3 %
|
114,089
|
116,420
|
118,381
|
2,305
|
2 %
|
Technology
|
28,027
|
26,172
|
1,855
|
7 %
|
24,220
|
23,598
|
25,299
|
2,728
|
11 %
|
Occupancy
|
14,429
|
14,125
|
304
|
2 %
|
13,587
|
15,063
|
15,846
|
(1,417)
|
(9) %
|
Business development
and advertising
|
8,350
|
7,100
|
1,250
|
18 %
|
7,106
|
5,849
|
8,136
|
214
|
3 %
|
Equipment
|
4,742
|
5,016
|
(274)
|
(5) %
|
4,975
|
4,930
|
4,791
|
(49)
|
(1) %
|
Legal and
professional
|
6,762
|
4,461
|
2,301
|
52 %
|
4,831
|
3,857
|
4,132
|
2,630
|
64 %
|
Loan and foreclosure
costs
|
585
|
2,049
|
(1,464)
|
(71) %
|
1,635
|
1,138
|
804
|
(219)
|
(27) %
|
FDIC
assessment
|
41,497
|
9,150
|
32,347
|
N/M
|
9,550
|
6,875
|
6,350
|
35,147
|
N/M
|
Other intangible
amortization
|
2,203
|
2,203
|
—
|
— %
|
2,203
|
2,203
|
2,203
|
—
|
— %
|
Other
|
12,110
|
8,771
|
3,339
|
38 %
|
8,476
|
7,479
|
10,618
|
1,492
|
14 %
|
Total noninterest
expense
|
239,391
|
196,205
|
43,186
|
22 %
|
190,673
|
187,412
|
196,560
|
42,831
|
22 %
|
Income (loss) before
income taxes
|
(138,009)
|
102,674
|
(240,683)
|
N/M
|
110,687
|
130,700
|
134,094
|
(272,103)
|
N/M
|
Income tax expense
(benefit)
|
(47,202)
|
19,426
|
(66,628)
|
N/M
|
23,533
|
27,340
|
25,332
|
(72,534)
|
N/M
|
Net income
(loss)
|
(90,806)
|
83,248
|
(174,054)
|
N/M
|
87,154
|
103,360
|
108,762
|
(199,568)
|
N/M
|
Preferred stock
dividends
|
2,875
|
2,875
|
—
|
— %
|
2,875
|
2,875
|
2,875
|
—
|
— %
|
Net income (loss)
available to common equity
|
$
(93,681)
|
$
80,373
|
$ (174,054)
|
N/M
|
$
84,279
|
$
100,485
|
$
105,887
|
$ (199,568)
|
N/M
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.63)
|
$ 0.53
|
$ (1.16)
|
N/M
|
$ 0.56
|
$ 0.67
|
$ 0.70
|
$ (1.33)
|
N/M
|
Diluted
|
$
(0.62)
|
$ 0.53
|
$ (1.15)
|
N/M
|
$ 0.56
|
$ 0.66
|
$ 0.70
|
$ (1.32)
|
N/M
|
Average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
150,085
|
150,035
|
50
|
— %
|
149,986
|
149,763
|
149,454
|
631
|
— %
|
Diluted
|
151,007
|
151,014
|
(7)
|
— %
|
150,870
|
151,128
|
150,886
|
121
|
— %
|
|
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
Dec
2023
|
YTD
Dec 2022
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
Per common share
data
|
|
|
|
|
|
|
|
Dividends
|
$
0.85
|
$ 0.81
|
$
0.22
|
$ 0.21
|
$ 0.21
|
$ 0.21
|
$ 0.21
|
Market
value:
|
|
|
|
|
|
|
|
High
|
24.18
|
25.71
|
21.79
|
19.21
|
18.45
|
24.18
|
25.13
|
Low
|
14.48
|
17.63
|
15.45
|
16.22
|
14.48
|
17.66
|
20.54
|
Close
|
|
|
21.39
|
17.11
|
16.23
|
17.98
|
23.09
|
Book value /
share
|
|
|
26.35
|
26.06
|
26.03
|
26.06
|
25.40
|
Tangible book value /
share
|
|
|
18.77
|
18.46
|
18.41
|
18.42
|
17.73
|
Performance ratios
(annualized)
|
|
|
|
|
|
|
|
Return on average
assets
|
0.45 %
|
1.00 %
|
(0.87) %
|
0.80 %
|
0.86 %
|
1.06 %
|
1.12 %
|
Noninterest expense /
average assets
|
2.00 %
|
2.04 %
|
2.30 %
|
1.90 %
|
1.89 %
|
1.92 %
|
2.03 %
|
Effective tax
rate
|
11.21 %
|
20.34 %
|
N/M
|
18.92 %
|
21.26 %
|
20.92 %
|
18.89 %
|
Dividend payout
ratio(a)
|
74.56 %
|
34.32 %
|
N/M
|
39.62 %
|
37.50 %
|
31.34 %
|
30.00 %
|
Net interest
margin
|
2.81 %
|
2.91 %
|
2.69 %
|
2.71 %
|
2.80 %
|
3.07 %
|
3.31 %
|
Selected trend
information
|
|
|
|
|
|
|
|
Average full time
equivalent employees(b)
|
4,199
|
4,118
|
4,130
|
4,220
|
4,227
|
4,219
|
4,169
|
Branch count
|
|
|
196
|
202
|
202
|
202
|
202
|
Assets under
management, at market value(c)
|
|
|
$
13,545
|
$
12,543
|
$
12,995
|
$
12,412
|
$
11,843
|
Mortgage loans
originated for sale during period
|
$
396
|
$ 600
|
$
112
|
$ 115
|
$
99
|
$
69
|
$
64
|
Mortgage loan
settlements during period(d)
|
$
1,212
|
$ 715
|
$
957
|
$ 103
|
$
97
|
$
55
|
$
95
|
Mortgage portfolio
loans transferred to held for sale during
period(d)
|
$
969
|
$
—
|
$
969
|
$
—
|
$
—
|
$
—
|
$
—
|
Mortgage portfolio
serviced for others(d)
|
|
|
$
7,364
|
$
6,452
|
$
6,525
|
$
6,612
|
$
6,712
|
Mortgage servicing
rights, net / mortgage portfolio serviced for
others(d)
|
|
|
1.15 %
|
1.38 %
|
1.23 %
|
1.13 %
|
1.15 %
|
Shares outstanding, end
of period
|
|
|
151,037
|
150,951
|
150,919
|
150,886
|
150,444
|
Selected quarterly
ratios
|
|
|
|
|
|
|
|
Loans /
deposits
|
|
|
87.35 %
|
93.99 %
|
93.24 %
|
96.29 %
|
97.18 %
|
Stockholders' equity /
assets
|
|
|
10.18 %
|
9.91 %
|
10.00 %
|
10.14 %
|
10.19 %
|
Risk-based
capital(e)(f)
|
|
|
|
|
|
|
|
Total risk-weighted
assets
|
|
|
$
32,732
|
$
33,497
|
$
33,144
|
$
32,646
|
$
32,470
|
Common equity Tier
1
|
|
|
$
3,075
|
$
3,197
|
$
3,143
|
$
3,086
|
$
3,036
|
Common equity Tier 1
capital ratio
|
|
|
9.39 %
|
9.55 %
|
9.48 %
|
9.45 %
|
9.35 %
|
Tier 1 capital
ratio
|
|
|
9.99 %
|
10.12 %
|
10.07 %
|
10.05 %
|
9.95 %
|
Total capital
ratio
|
|
|
12.21 %
|
12.25 %
|
12.22 %
|
12.22 %
|
11.33 %
|
Tier 1 leverage
ratio
|
|
|
8.06 %
|
8.42 %
|
8.40 %
|
8.46 %
|
8.59 %
|
|
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 $844 million. After sale, the servicing has been retained for a
short period until full servicing can be transferred to the
purchaser.
|
(e)
|
The Federal Reserve
establishes regulatory capital requirements, including
well-capitalized standards for the Corporation. The regulatory
capital requirements effective for the Corporation follow Basel
III, subject to certain transition provisions.
|
(f)
|
December 31, 2023 data
is estimated.
|
Associated
Banc-Corp
Selected Asset Quality
Information
|
|
|
|
|
|
($ in
thousands)
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Allowance for loan
losses
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
345,795
|
$
338,750
|
2 %
|
$
326,432
|
$
312,720
|
$
292,904
|
18 %
|
Provision for loan
losses
|
21,000
|
25,500
|
(18) %
|
23,500
|
17,000
|
21,000
|
— %
|
Charge offs
|
(17,878)
|
(20,535)
|
(13) %
|
(14,855)
|
(5,501)
|
(2,982)
|
N/M
|
Recoveries
|
2,177
|
2,079
|
5 %
|
3,674
|
2,212
|
1,798
|
21 %
|
Net (charge offs)
recoveries
|
(15,701)
|
(18,455)
|
(15) %
|
(11,181)
|
(3,289)
|
(1,183)
|
N/M
|
Balance at end of
period
|
$
351,094
|
$
345,795
|
2 %
|
$
338,750
|
$
326,432
|
$
312,720
|
12 %
|
Allowance for
unfunded commitments
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
34,776
|
$ 38,276
|
(9) %
|
$ 39,776
|
$ 38,776
|
$ 39,776
|
(13) %
|
Provision for unfunded
commitments
|
—
|
(3,500)
|
(100) %
|
(1,500)
|
1,000
|
(1,000)
|
(100) %
|
Balance at end of
period
|
$
34,776
|
$ 34,776
|
— %
|
$ 38,276
|
$ 39,776
|
$ 38,776
|
(10) %
|
Allowance for credit
losses on loans (ACLL)
|
$
385,870
|
$
380,571
|
1 %
|
$
377,027
|
$
366,208
|
$
351,496
|
10 %
|
Provision for credit
losses on loans
|
$
21,000
|
$ 22,000
|
(5) %
|
$ 22,000
|
$ 18,000
|
$ 20,000
|
5 %
|
($ in
thousands)
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Net (charge offs)
recoveries
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
(13,178)
|
$
(16,558)
|
(20) %
|
$
(11,177)
|
$ (1,759)
|
$
278
|
N/M
|
Commercial real
estate—owner occupied
|
(22)
|
2
|
N/M
|
3
|
3
|
3
|
N/M
|
Commercial and
business lending
|
(13,200)
|
(16,556)
|
(20) %
|
(11,174)
|
(1,756)
|
281
|
N/M
|
Commercial real
estate—investor
|
216
|
272
|
(21) %
|
2,276
|
—
|
—
|
N/M
|
Real estate
construction
|
38
|
18
|
111 %
|
(18)
|
18
|
16
|
138 %
|
Commercial real estate
lending
|
253
|
290
|
(13) %
|
2,257
|
18
|
16
|
N/M
|
Total
commercial
|
(12,947)
|
(16,266)
|
(20) %
|
(8,917)
|
(1,738)
|
297
|
N/M
|
Residential
mortgage
|
(53)
|
(22)
|
141 %
|
(283)
|
(53)
|
(125)
|
(58) %
|
Auto finance
|
(1,436)
|
(1,269)
|
13 %
|
(1,048)
|
(957)
|
(768)
|
87 %
|
Home equity
|
185
|
128
|
45 %
|
183
|
340
|
123
|
50 %
|
Other
consumer
|
(1,450)
|
(1,027)
|
41 %
|
(1,117)
|
(881)
|
(711)
|
104 %
|
Total
consumer
|
(2,754)
|
(2,189)
|
26 %
|
(2,264)
|
(1,550)
|
(1,480)
|
86 %
|
Total net (charge
offs) recoveries
|
$
(15,701)
|
$
(18,455)
|
(15) %
|
$
(11,181)
|
$ (3,289)
|
$ (1,183)
|
N/M
|
(In basis
points)
|
Dec 31,
2023
|
Sep 30, 2023
|
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
|
Net (charge offs)
recoveries to average loans (annualized)
|
|
|
|
|
|
|
|
Commercial and
industrial
|
(54)
|
(66)
|
|
(46)
|
(7)
|
1
|
|
Commercial real
estate—owner occupied
|
(1)
|
—
|
|
—
|
—
|
—
|
|
Commercial and
business lending
|
(48)
|
(60)
|
|
(41)
|
(7)
|
1
|
|
Commercial real
estate—investor
|
2
|
2
|
|
18
|
—
|
—
|
|
Real estate
construction
|
1
|
—
|
|
—
|
—
|
—
|
|
Commercial real estate
lending
|
1
|
2
|
|
12
|
—
|
—
|
|
Total
commercial
|
(28)
|
(35)
|
|
(20)
|
(4)
|
1
|
|
Residential
mortgage
|
—
|
—
|
|
(1)
|
—
|
(1)
|
|
Auto finance
|
(27)
|
(27)
|
|
(25)
|
(26)
|
(24)
|
|
Home equity
|
12
|
8
|
|
12
|
22
|
8
|
|
Other
consumer
|
(208)
|
(148)
|
|
(163)
|
(125)
|
(95)
|
|
Total
consumer
|
(9)
|
(7)
|
|
(8)
|
(6)
|
(6)
|
|
Total net (charge
offs) recoveries
|
(21)
|
(25)
|
|
(15)
|
(5)
|
(2)
|
|
($ in
thousands)
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Credit
quality
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
148,997
|
$
168,558
|
(12) %
|
$
131,278
|
$
117,569
|
$
111,467
|
34 %
|
Other real estate owned
(OREO)
|
10,506
|
8,452
|
24 %
|
7,575
|
15,184
|
14,784
|
(29) %
|
Repossessed
assets
|
$
919
|
$
658
|
40 %
|
$
348
|
$
92
|
$
215
|
N/M
|
Total nonperforming
assets
|
$
160,421
|
$
177,668
|
(10) %
|
$
139,201
|
$
132,845
|
$
126,466
|
27 %
|
Loans 90 or more days
past due and still accruing
|
$
21,689
|
$
2,156
|
N/M
|
$
1,726
|
$
1,703
|
$
1,728
|
N/M
|
Allowance for credit
losses on loans to total loans
|
1.32 %
|
1.26 %
|
|
1.26 %
|
1.25 %
|
1.22 %
|
|
Allowance for credit
losses on loans to nonaccrual loans
|
258.98 %
|
225.78 %
|
|
287.20 %
|
311.48 %
|
315.34 %
|
|
Nonaccrual loans to
total loans
|
0.51 %
|
0.56 %
|
|
0.44 %
|
0.40 %
|
0.39 %
|
|
Nonperforming assets to
total loans plus OREO and repossessed assets
|
0.55 %
|
0.59 %
|
|
0.47 %
|
0.45 %
|
0.44 %
|
|
Nonperforming assets to
total assets
|
0.39 %
|
0.43 %
|
|
0.34 %
|
0.33 %
|
0.32 %
|
|
Annualized year-to-date
net charge offs (recoveries) to year-to-date average
loans
|
0.16 %
|
0.15 %
|
|
0.10 %
|
0.05 %
|
— %
|
|
Associated
Banc-Corp
Selected Asset Quality Information
(continued)
|
(In
thousands)
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Nonaccrual
loans
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
62,022
|
$
74,812
|
(17) %
|
$
34,907
|
$
22,735
|
$
14,329
|
N/M
|
Commercial real
estate—owner occupied
|
1,394
|
3,936
|
(65) %
|
1,444
|
1,478
|
—
|
N/M
|
Commercial and
business lending
|
63,416
|
78,748
|
(19) %
|
36,352
|
24,213
|
14,329
|
N/M
|
Commercial real
estate—investor
|
—
|
10,882
|
(100) %
|
22,068
|
25,122
|
29,380
|
(100) %
|
Real estate
construction
|
6
|
103
|
(94) %
|
125
|
178
|
105
|
(94) %
|
Commercial real estate
lending
|
6
|
10,985
|
(100) %
|
22,193
|
25,300
|
29,485
|
(100) %
|
Total
commercial
|
63,422
|
89,732
|
(29) %
|
58,544
|
49,513
|
43,814
|
45 %
|
Residential
mortgage
|
71,142
|
66,153
|
8 %
|
61,718
|
58,274
|
58,480
|
22 %
|
Auto finance
|
5,797
|
4,533
|
28 %
|
3,065
|
2,436
|
1,490
|
N/M
|
Home equity
|
8,508
|
7,917
|
7 %
|
7,788
|
7,246
|
7,487
|
14 %
|
Other
consumer
|
128
|
222
|
(42) %
|
163
|
100
|
197
|
(35) %
|
Total
consumer
|
85,574
|
78,826
|
9 %
|
72,733
|
68,056
|
67,654
|
26 %
|
Total nonaccrual
loans
|
$
148,997
|
$
168,558
|
(12) %
|
$
131,278
|
$
117,569
|
$
111,467
|
34 %
|
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Restructured loans
(accruing)(a)
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
306
|
$
234
|
31 %
|
$
168
|
$
47
|
$
12,453
|
N/A
|
Commercial real
estate—owner occupied
|
—
|
—
|
N/M
|
—
|
—
|
316
|
N/A
|
Commercial and
business lending
|
306
|
234
|
31 %
|
168
|
47
|
12,769
|
N/A
|
Commercial real
estate—investor
|
—
|
—
|
N/M
|
—
|
—
|
128
|
N/A
|
Real estate
construction
|
—
|
—
|
N/M
|
—
|
—
|
195
|
N/A
|
Commercial real estate
lending
|
—
|
—
|
N/M
|
—
|
—
|
324
|
N/A
|
Total
commercial
|
306
|
234
|
31 %
|
168
|
47
|
13,093
|
N/A
|
Residential
mortgage
|
405
|
207
|
96 %
|
126
|
126
|
16,829
|
N/A
|
Auto finance
|
255
|
169
|
51 %
|
80
|
61
|
—
|
N/A
|
Home equity
|
305
|
236
|
29 %
|
78
|
31
|
2,148
|
N/A
|
Other
consumer
|
1,449
|
1,243
|
17 %
|
988
|
498
|
798
|
N/A
|
Total
consumer
|
2,414
|
1,855
|
30 %
|
1,271
|
716
|
19,775
|
N/A
|
Total restructured
loans (accruing)
|
$
2,719
|
$
2,089
|
30 %
|
$
1,439
|
$
763
|
$
32,868
|
N/A
|
Nonaccrual restructured
loans (included in nonaccrual loans)
|
$
805
|
$
961
|
(16) %
|
$
796
|
$
341
|
$
20,127
|
N/A
|
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Accruing loans 30-89
days past due
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
5,565
|
$
1,507
|
N/M
|
$
12,005
|
$
4,239
|
$
6,283
|
(11) %
|
Commercial real
estate—owner occupied
|
358
|
1,877
|
(81) %
|
1,484
|
2,955
|
230
|
56 %
|
Commercial and
business lending
|
5,923
|
3,384
|
75 %
|
13,489
|
7,195
|
6,512
|
(9) %
|
Commercial real
estate—investor
|
18,697
|
10,121
|
85 %
|
—
|
—
|
1,067
|
N/M
|
Real estate
construction
|
—
|
10
|
(100) %
|
76
|
—
|
39
|
(100) %
|
Commercial real estate
lending
|
18,697
|
10,131
|
85 %
|
76
|
—
|
1,105
|
N/M
|
Total
commercial
|
24,619
|
13,515
|
82 %
|
13,565
|
7,195
|
7,618
|
N/M
|
Residential
mortgage
|
13,446
|
11,652
|
15 %
|
8,961
|
7,626
|
9,874
|
36 %
|
Auto finance
|
17,386
|
16,688
|
4 %
|
11,429
|
8,640
|
9,408
|
85 %
|
Home equity
|
4,208
|
3,687
|
14 %
|
4,030
|
4,113
|
5,607
|
(25) %
|
Other
consumer
|
2,166
|
1,880
|
15 %
|
2,025
|
1,723
|
1,610
|
35 %
|
Total
consumer
|
37,205
|
33,908
|
10 %
|
26,444
|
22,102
|
26,499
|
40 %
|
Total accruing loans
30-89 days past due
|
$
61,825
|
$
47,422
|
30 %
|
$
40,008
|
$
29,297
|
$
34,117
|
81 %
|
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Potential problem
loans
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
197,202
|
$
207,237
|
(5) %
|
$
205,228
|
$
135,047
|
$
136,549
|
44 %
|
Commercial real
estate—owner occupied
|
38,699
|
27,792
|
39 %
|
29,396
|
32,077
|
34,422
|
12 %
|
Commercial and
business lending
|
235,900
|
235,029
|
— %
|
234,624
|
167,124
|
170,971
|
38 %
|
Commercial real
estate—investor
|
196,163
|
148,840
|
32 %
|
106,662
|
89,653
|
92,535
|
112 %
|
Real estate
construction
|
—
|
—
|
N/M
|
—
|
—
|
970
|
(100) %
|
Commercial real estate
lending
|
196,163
|
148,840
|
32 %
|
106,662
|
89,653
|
93,505
|
110 %
|
Total
commercial
|
432,063
|
383,869
|
13 %
|
341,286
|
256,776
|
264,476
|
63 %
|
Residential
mortgage
|
784
|
1,247
|
(37) %
|
1,646
|
1,684
|
1,978
|
(60) %
|
Home equity
|
118
|
236
|
(50) %
|
240
|
244
|
197
|
(40) %
|
Total
consumer
|
901
|
1,483
|
(39) %
|
1,886
|
1,928
|
2,175
|
(59) %
|
Total potential
problem loans
|
$
432,965
|
$
385,352
|
12 %
|
$
343,173
|
$
258,704
|
$
266,651
|
62 %
|
|
N/M = Not
meaningful
|
Numbers may not sum due
to rounding.
|
(a) On January 1, 2023,
the Corporation adopted ASU 2022-02. Under this update, troubled
debt restructurings were eliminated and replaced with a modified
loan classification. As a result, amounts reported for 2023 periods
will not be comparable to amounts reported for 2022
periods.
|
Associated
Banc-Corp
Net Interest Income Analysis - Fully
Tax-Equivalent Basis - Sequential and Comparable Quarter
|
|
|
|
|
Three Months
Ended
|
|
December 31,
2023
|
September 30,
2023
|
December 31,
2022
|
($ 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
|
$
10,820,214
|
$
193,808
|
7.11 %
|
$
10,985,584
|
$
194,956
|
7.04 %
|
$
10,529,984
|
$
147,184
|
5.55 %
|
Commercial real estate
lending
|
7,397,809
|
138,437
|
7.42 %
|
7,312,645
|
134,370
|
7.29 %
|
7,062,405
|
105,479
|
5.93 %
|
Total
commercial
|
18,218,024
|
332,245
|
7.24 %
|
18,298,229
|
329,326
|
7.14 %
|
17,592,389
|
252,663
|
5.70 %
|
Residential
mortgage
|
8,691,258
|
76,035
|
3.50 %
|
8,807,157
|
74,643
|
3.39 %
|
8,443,661
|
68,069
|
3.22 %
|
Auto finance
|
2,138,536
|
29,221
|
5.42 %
|
1,884,540
|
24,074
|
5.07 %
|
1,244,436
|
12,911
|
4.12 %
|
Other retail
|
904,618
|
21,026
|
9.27 %
|
894,685
|
20,534
|
9.15 %
|
914,848
|
16,366
|
7.13 %
|
Total loans
|
29,952,435
|
458,527
|
6.08 %
|
29,884,611
|
448,577
|
5.96 %
|
28,195,334
|
350,009
|
4.93 %
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
Taxable
|
5,344,578
|
41,809
|
3.13 %
|
5,407,299
|
38,210
|
2.83 %
|
4,336,132
|
21,435
|
1.98 %
|
Tax-exempt(a)
|
2,209,662
|
19,244
|
3.48 %
|
2,300,488
|
20,085
|
3.49 %
|
2,428,751
|
21,000
|
3.46 %
|
Other short-term
investments
|
767,256
|
10,418
|
5.39 %
|
483,211
|
6,575
|
5.40 %
|
408,091
|
3,779
|
3.68 %
|
Investments and
other
|
8,321,495
|
71,471
|
3.43 %
|
8,190,998
|
64,870
|
3.16 %
|
7,172,975
|
46,213
|
2.57 %
|
Total earning
assets
|
38,273,931
|
$
529,998
|
5.51 %
|
38,075,608
|
$
513,447
|
5.36 %
|
35,368,309
|
$
396,222
|
4.46 %
|
Other assets,
net
|
3,056,772
|
|
|
3,000,371
|
|
|
3,017,127
|
|
|
Total
assets
|
$
41,330,703
|
|
|
$
41,075,980
|
|
|
$
38,385,436
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
Savings
|
$
4,861,913
|
$
20,334
|
1.66 %
|
$
4,814,499
|
$ 18,592
|
1.53 %
|
$ 4,660,696
|
$ 3,607
|
0.31 %
|
Interest-bearing
demand
|
7,156,151
|
47,277
|
2.62 %
|
6,979,071
|
41,980
|
2.39 %
|
6,831,213
|
20,861
|
1.21 %
|
Money market
|
6,121,105
|
47,110
|
3.05 %
|
6,294,083
|
45,034
|
2.84 %
|
7,382,793
|
23,728
|
1.28 %
|
Network transaction
deposits
|
1,616,719
|
22,034
|
5.41 %
|
1,639,619
|
22,008
|
5.33 %
|
901,168
|
8,261
|
3.64 %
|
Time
deposits
|
6,264,621
|
72,121
|
4.57 %
|
5,955,741
|
65,517
|
4.36 %
|
1,463,204
|
4,262
|
1.16 %
|
Total interest-bearing
deposits
|
26,020,510
|
208,875
|
3.18 %
|
25,683,013
|
193,131
|
2.98 %
|
21,239,073
|
60,719
|
1.13 %
|
Federal funds purchased
and securities sold under agreements to repurchase
|
347,204
|
3,734
|
4.27 %
|
320,518
|
3,100
|
3.84 %
|
424,352
|
2,280
|
2.13 %
|
Commercial
paper
|
—
|
—
|
— %
|
5,041
|
—
|
0.01 %
|
12,927
|
—
|
0.01 %
|
FHLB
advances
|
3,467,433
|
49,171
|
5.63 %
|
3,460,827
|
48,143
|
5.52 %
|
3,790,101
|
36,824
|
3.85 %
|
Long-term
funding
|
531,155
|
10,185
|
7.67 %
|
533,744
|
10,019
|
7.51 %
|
248,645
|
2,470
|
3.97 %
|
Total short and
long-term funding
|
4,345,793
|
63,090
|
5.77 %
|
4,320,130
|
61,263
|
5.63 %
|
4,476,025
|
41,575
|
3.69 %
|
Total interest-bearing
liabilities
|
30,366,302
|
$
271,965
|
3.55 %
|
30,003,143
|
$
254,394
|
3.36 %
|
25,715,098
|
$
102,294
|
1.58 %
|
Noninterest-bearing
demand deposits
|
6,171,240
|
|
|
6,318,781
|
|
|
8,088,435
|
|
|
Other
liabilities
|
672,597
|
|
|
622,004
|
|
|
590,223
|
|
|
Stockholders'
equity
|
4,120,564
|
|
|
4,132,052
|
|
|
3,991,679
|
|
|
Total liabilities and
stockholders' equity
|
$
41,330,703
|
|
|
$
41,075,980
|
|
|
$
38,385,436
|
|
|
Interest rate
spread
|
|
|
1.96 %
|
|
|
2.00 %
|
|
|
2.88 %
|
Net free
funds
|
|
|
0.73 %
|
|
|
0.71 %
|
|
|
0.43 %
|
Fully tax-equivalent
net interest income and net interest margin
|
|
$
258,033
|
2.69 %
|
|
$
259,053
|
2.71 %
|
|
$
293,929
|
3.31 %
|
Fully tax-equivalent
adjustment
|
|
4,630
|
|
|
4,810
|
|
|
4,939
|
|
Net interest
income
|
|
$
253,403
|
|
|
$
254,244
|
|
|
$
288,989
|
|
|
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
|
|
Year Ended December
31,
|
|
2023
|
2022
|
($ 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
|
$
10,831,275
|
$
740,017
|
6.83 %
|
$
9,852,303
|
$
384,155
|
3.90 %
|
Commercial real estate
lending
|
7,314,651
|
520,028
|
7.11 %
|
6,595,635
|
281,485
|
4.27 %
|
Total
commercial
|
18,145,926
|
1,260,045
|
6.94 %
|
16,447,938
|
665,640
|
4.05 %
|
Residential
mortgage
|
8,696,706
|
293,446
|
3.37 %
|
8,052,277
|
245,975
|
3.05 %
|
Auto finance
|
1,793,959
|
89,454
|
4.99 %
|
805,179
|
30,749
|
3.82 %
|
Other retail
|
897,702
|
80,189
|
8.93 %
|
894,948
|
52,266
|
5.84 %
|
Total loans
|
29,534,293
|
1,723,134
|
5.83 %
|
26,200,341
|
994,630
|
3.80 %
|
Investment
securities
|
|
|
|
|
|
|
Taxable
|
5,243,805
|
146,006
|
2.78 %
|
4,362,394
|
75,444
|
1.73 %
|
Tax-exempt
(a)
|
2,288,328
|
79,673
|
3.48 %
|
2,419,262
|
82,771
|
3.42 %
|
Other short-term
investments
|
564,284
|
28,408
|
5.03 %
|
570,887
|
11,475
|
2.01 %
|
Investments and
other
|
8,096,417
|
254,087
|
3.14 %
|
7,352,542
|
169,690
|
2.31 %
|
Total earning
assets
|
37,630,710
|
$
1,977,221
|
5.25 %
|
33,552,884
|
$
1,164,320
|
3.47 %
|
Other assets,
net
|
3,018,214
|
|
|
3,105,049
|
|
|
Total
assets
|
$
40,648,923
|
|
|
$
36,657,932
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
Savings
|
$
4,773,366
|
$
63,945
|
1.34 %
|
$
4,652,774
|
$
5,033
|
0.11 %
|
Interest-bearing
demand
|
6,904,514
|
154,136
|
2.23 %
|
6,638,592
|
35,169
|
0.53 %
|
Money market
|
6,668,930
|
177,311
|
2.66 %
|
7,164,518
|
36,370
|
0.51 %
|
Network transaction
deposits
|
1,469,616
|
75,294
|
5.12 %
|
821,804
|
14,721
|
1.79 %
|
Time
deposits
|
4,905,748
|
202,939
|
4.14 %
|
1,315,793
|
7,016
|
0.53 %
|
Total interest-bearing
deposits
|
24,722,174
|
673,624
|
2.72 %
|
20,593,482
|
98,309
|
0.48 %
|
Federal funds purchased
and securities sold under agreements to repurchase
|
345,519
|
12,238
|
3.54 %
|
388,701
|
3,480
|
0.90 %
|
Commercial
paper
|
8,582
|
1
|
0.01 %
|
20,540
|
2
|
0.01 %
|
FHLB
advances
|
3,741,790
|
196,535
|
5.25 %
|
2,784,403
|
75,487
|
2.71 %
|
Long-term
funding
|
504,438
|
36,080
|
7.15 %
|
249,478
|
10,653
|
4.27 %
|
Total short and
long-term funding
|
4,600,329
|
244,855
|
5.32 %
|
3,443,123
|
89,621
|
2.60 %
|
Total interest-bearing
liabilities
|
29,322,503
|
$
918,479
|
3.13 %
|
24,036,605
|
$
187,931
|
0.78 %
|
Noninterest-bearing
demand deposits
|
6,620,965
|
|
|
8,163,703
|
|
|
Other
liabilities
|
594,318
|
|
|
482,538
|
|
|
Stockholders'
equity
|
4,111,138
|
|
|
3,975,086
|
|
|
Total liabilities and
stockholders' equity
|
$
40,648,923
|
|
|
$
36,657,932
|
|
|
Interest rate
spread
|
|
|
2.12 %
|
|
|
2.69 %
|
Net free
funds
|
|
|
0.69 %
|
|
|
0.22 %
|
Fully tax-equivalent
net interest income and net interest margin
|
|
$
1,058,742
|
2.81 %
|
|
$
976,389
|
2.91 %
|
Fully tax-equivalent
adjustment
|
|
19,168
|
|
|
19,068
|
|
Net interest
income
|
|
$
1,039,573
|
|
|
$
957,321
|
|
|
|
|
|
|
|
|
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
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Commercial and
industrial
|
$
9,731,555
|
$
10,099,068
|
(4) %
|
$
10,055,487
|
$
9,869,781
|
$
9,759,454
|
— %
|
Commercial real
estate—owner occupied
|
1,061,700
|
1,054,969
|
1 %
|
1,058,237
|
1,050,236
|
991,722
|
7 %
|
Commercial and
business lending
|
10,793,255
|
11,154,037
|
(3) %
|
11,113,724
|
10,920,017
|
10,751,176
|
— %
|
Commercial real
estate—investor
|
5,124,245
|
5,218,980
|
(2) %
|
5,312,928
|
5,094,249
|
5,080,344
|
1 %
|
Real estate
construction
|
2,271,398
|
2,130,719
|
7 %
|
2,009,060
|
2,147,070
|
2,155,222
|
5 %
|
Commercial real estate
lending
|
7,395,644
|
7,349,699
|
1 %
|
7,321,988
|
7,241,318
|
7,235,565
|
2 %
|
Total
commercial
|
18,188,898
|
18,503,736
|
(2) %
|
18,435,711
|
18,161,335
|
17,986,742
|
1 %
|
Residential
mortgage
|
7,864,891
|
8,782,645
|
(10) %
|
8,746,345
|
8,605,164
|
8,511,550
|
(8) %
|
Auto finance
|
2,256,162
|
2,007,164
|
12 %
|
1,777,974
|
1,551,538
|
1,382,073
|
63 %
|
Home equity
|
628,526
|
623,650
|
1 %
|
615,506
|
609,787
|
624,353
|
1 %
|
Other
consumer
|
277,740
|
275,993
|
1 %
|
273,367
|
279,248
|
294,851
|
(6) %
|
Total
consumer
|
11,027,319
|
11,689,451
|
(6) %
|
11,413,193
|
11,045,737
|
10,812,828
|
2 %
|
Total loans
|
$
29,216,218
|
$
30,193,187
|
(3) %
|
$
29,848,904
|
$
29,207,072
|
$
28,799,569
|
1 %
|
Period end deposit and
customer funding composition
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Noninterest-bearing
demand
|
$
6,119,956
|
$ 6,422,994
|
(5) %
|
$ 6,565,666
|
$
7,328,689
|
$
7,760,811
|
(21) %
|
Savings
|
4,835,701
|
4,836,735
|
— %
|
4,777,415
|
4,730,472
|
4,604,848
|
5 %
|
Interest-bearing
demand
|
8,843,967
|
7,528,154
|
17 %
|
7,037,959
|
6,977,121
|
7,100,727
|
25 %
|
Money market
|
6,330,453
|
7,268,506
|
(13) %
|
7,521,930
|
8,357,625
|
8,239,610
|
(23) %
|
Brokered CDs
|
4,447,479
|
3,351,399
|
33 %
|
3,818,325
|
1,185,565
|
541,916
|
N/M
|
Other time
deposits
|
2,868,494
|
2,715,538
|
6 %
|
2,293,114
|
1,752,351
|
1,388,242
|
107 %
|
Total
deposits
|
33,446,049
|
32,123,326
|
4 %
|
32,014,409
|
30,331,824
|
29,636,154
|
13 %
|
Other customer
funding(a)
|
106,620
|
151,644
|
(30) %
|
170,873
|
226,258
|
261,767
|
(59) %
|
Total deposits and
other customer funding
|
$
33,552,669
|
$
32,274,971
|
4 %
|
$
32,185,282
|
$
30,558,081
|
$
29,897,921
|
12 %
|
Network transaction
deposits(b)
|
$
1,566,139
|
$ 1,649,389
|
(5) %
|
$ 1,600,619
|
$
1,273,420
|
$
979,003
|
60 %
|
Net deposits and other
customer funding(c)
|
$
27,539,051
|
$
27,274,183
|
1 %
|
$
26,766,338
|
$
28,099,096
|
$
28,377,001
|
(3) %
|
Quarter average loan
composition
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Commercial and
industrial
|
$
9,768,803
|
$ 9,927,271
|
(2) %
|
$ 9,831,956
|
$
9,600,838
|
$
9,528,180
|
3 %
|
Commercial real
estate—owner occupied
|
1,051,412
|
1,058,313
|
(1) %
|
1,067,381
|
1,015,187
|
1,001,805
|
5 %
|
Commercial and
business lending
|
10,820,214
|
10,985,584
|
(2) %
|
10,899,337
|
10,616,026
|
10,529,984
|
3 %
|
Commercial real
estate—investor
|
5,156,528
|
5,205,626
|
(1) %
|
5,206,430
|
5,093,122
|
5,048,419
|
2 %
|
Real estate
construction
|
2,241,281
|
2,107,018
|
6 %
|
2,088,937
|
2,158,072
|
2,013,986
|
11 %
|
Commercial real estate
lending
|
7,397,809
|
7,312,645
|
1 %
|
7,295,367
|
7,251,193
|
7,062,405
|
5 %
|
Total
commercial
|
18,218,024
|
18,298,229
|
— %
|
18,194,703
|
17,867,219
|
17,592,389
|
4 %
|
Residential
mortgage
|
8,691,258
|
8,807,157
|
(1) %
|
8,701,496
|
8,584,528
|
8,443,661
|
3 %
|
Auto finance
|
2,138,536
|
1,884,540
|
13 %
|
1,654,523
|
1,490,115
|
1,244,436
|
72 %
|
Home equity
|
627,736
|
619,423
|
1 %
|
612,045
|
618,724
|
619,044
|
1 %
|
Other
consumer
|
276,881
|
275,262
|
1 %
|
275,530
|
285,232
|
295,804
|
(6) %
|
Total
consumer
|
11,734,412
|
11,586,382
|
1 %
|
11,243,594
|
10,978,599
|
10,602,945
|
11 %
|
Total
loans(d)
|
$
29,952,435
|
$
29,884,611
|
— %
|
$
29,438,297
|
$
28,845,818
|
$
28,195,334
|
6 %
|
Quarter average deposit
composition
|
Dec 31,
2023
|
Sep 30, 2023
|
Seql Qtr %
Change
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Comp Qtr %
Change
|
Noninterest-bearing
demand
|
$
6,171,240
|
$ 6,318,781
|
(2) %
|
$ 6,669,787
|
$
7,340,219
|
$
8,088,435
|
(24) %
|
Savings
|
4,861,913
|
4,814,499
|
1 %
|
4,749,808
|
4,664,624
|
4,660,696
|
4 %
|
Interest-bearing
demand
|
7,156,151
|
6,979,071
|
3 %
|
6,663,775
|
6,814,487
|
6,831,213
|
5 %
|
Money market
|
6,121,105
|
6,294,083
|
(3) %
|
6,743,810
|
7,536,393
|
7,382,793
|
(17) %
|
Network transaction
deposits
|
1,616,719
|
1,639,619
|
(1) %
|
1,468,006
|
1,147,089
|
901,168
|
79 %
|
Brokered CDs
|
3,470,516
|
3,428,711
|
1 %
|
3,001,775
|
810,889
|
190,406
|
N/M
|
Other time
deposits
|
2,794,105
|
2,527,030
|
11 %
|
1,984,174
|
1,551,371
|
1,272,797
|
120 %
|
Total
deposits
|
32,191,750
|
32,001,794
|
1 %
|
31,281,134
|
29,865,072
|
29,327,509
|
10 %
|
Other customer
funding(a)
|
127,252
|
164,289
|
(23) %
|
196,051
|
245,349
|
306,122
|
(58) %
|
Total deposits and
other customer funding
|
$
32,319,002
|
$
32,166,082
|
— %
|
$
31,477,186
|
$
30,110,421
|
$
29,633,631
|
9 %
|
Net deposits and other
customer funding(c)
|
$
27,231,767
|
$
27,097,752
|
— %
|
$
27,007,405
|
$
28,152,443
|
$
28,542,056
|
(5) %
|
|
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)
|
Dec
2023
|
Dec 2022
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
Selected equity and
performance ratios(a)(b)(c)
|
|
|
|
|
|
|
|
Tangible common equity
/ tangible assets
|
|
|
7.11 %
|
6.88 %
|
6.94 %
|
7.03 %
|
6.97 %
|
Return on average
equity
|
4.45 %
|
9.21 %
|
(8.74) %
|
7.99 %
|
8.47 %
|
10.32 %
|
10.81 %
|
Return on average
tangible common equity
|
6.44 %
|
13.77 %
|
(13.13) %
|
11.67 %
|
12.38 %
|
15.26 %
|
16.15 %
|
Return on average
common equity Tier 1
|
5.51 %
|
12.23 %
|
(11.85) %
|
10.08 %
|
10.88 %
|
13.38 %
|
14.04 %
|
Return on average
tangible assets
|
0.48 %
|
1.05 %
|
(0.88) %
|
0.84 %
|
0.90 %
|
1.11 %
|
1.18 %
|
Average stockholders'
equity / average assets
|
10.11 %
|
10.84 %
|
9.97 %
|
10.06 %
|
10.18 %
|
10.26 %
|
10.40 %
|
Tangible common
equity reconciliation(a)
|
|
|
|
|
|
|
|
Common
equity
|
|
|
$
3,980
|
$
3,934
|
$
3,929
|
$ 3,932
|
$
3,821
|
Goodwill and other
intangible assets, net
|
|
|
(1,145)
|
(1,148)
|
(1,150)
|
(1,152)
|
(1,154)
|
Tangible common
equity
|
|
|
$
2,834
|
$
2,786
|
$
2,779
|
$ 2,779
|
$
2,667
|
Tangible assets
reconciliation(a)
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
41,016
|
$
41,637
|
$
41,219
|
$ 40,703
|
$
39,406
|
Goodwill and other
intangible assets, net
|
|
|
(1,145)
|
(1,148)
|
(1,150)
|
(1,152)
|
(1,154)
|
Tangible
assets
|
|
|
$
39,870
|
$
40,490
|
$
40,070
|
$ 39,550
|
$
38,251
|
Average tangible
common equity and average common equity Tier 1
reconciliation(a)
|
|
|
|
|
|
|
|
Common
equity
|
$
3,917
|
$
3,782
|
$
3,926
|
$
3,938
|
$
3,935
|
$ 3,868
|
$
3,798
|
Goodwill and other
intangible assets, net
|
(1,150)
|
(1,159)
|
(1,147)
|
(1,149)
|
(1,151)
|
(1,153)
|
(1,155)
|
Tangible common
equity
|
2,767
|
2,623
|
2,780
|
2,789
|
2,784
|
2,715
|
2,642
|
Modified
CECL transitional amount
|
45
|
67
|
45
|
45
|
45
|
45
|
67
|
Accumulated other
comprehensive loss
|
275
|
174
|
286
|
302
|
252
|
259
|
254
|
Deferred tax assets,
net
|
28
|
34
|
27
|
28
|
28
|
28
|
29
|
Average common equity
Tier 1
|
$
3,114
|
$
2,899
|
$
3,138
|
$
3,164
|
$
3,108
|
$ 3,047
|
$
2,993
|
Average tangible
assets reconciliation(a)
|
|
|
|
|
|
|
|
Total assets
|
$
40,649
|
$
36,658
|
$
41,331
|
$
41,076
|
$
40,558
|
$ 39,607
|
$
38,385
|
Goodwill and other
intangible assets, net
|
(1,150)
|
(1,159)
|
(1,147)
|
(1,149)
|
(1,151)
|
(1,153)
|
(1,155)
|
Tangible
assets
|
$
39,499
|
$
35,499
|
$
40,184
|
$
39,927
|
$
39,407
|
$ 38,454
|
$
37,230
|
Adjusted net income
reconciliation(b)
|
|
|
|
|
|
|
|
Net income
|
$
183
|
$ 366
|
$
(91)
|
$
83
|
$
87
|
$
103
|
$ 109
|
Other intangible
amortization, net of tax
|
7
|
7
|
2
|
2
|
2
|
2
|
2
|
Adjusted net
income
|
$
190
|
$ 373
|
$
(89)
|
$
85
|
$
89
|
$
105
|
$ 110
|
Adjusted net income
available to common equity
reconciliation(b)
|
|
|
|
|
|
|
|
Net income available to
common equity
|
$
171
|
$ 355
|
$
(94)
|
$
80
|
$
84
|
$
100
|
$ 106
|
Other intangible
amortization, net of tax
|
7
|
7
|
2
|
2
|
2
|
2
|
2
|
Adjusted net income
available to common equity
|
$
178
|
$ 361
|
$
(92)
|
$
82
|
$
86
|
$
102
|
$ 108
|
Selected trend
information(d)
|
|
|
|
|
|
|
|
Wealth management
fees
|
$
83
|
$
84
|
$
21
|
$
21
|
$
20
|
$
20
|
$
20
|
Service charges and
deposit account fees
|
49
|
62
|
11
|
13
|
12
|
13
|
14
|
Card-based
fees
|
45
|
44
|
12
|
12
|
11
|
11
|
11
|
Other fee-based
revenue
|
17
|
16
|
4
|
5
|
4
|
4
|
3
|
Fee-based
revenue
|
194
|
206
|
47
|
50
|
49
|
48
|
49
|
Other
|
(131)
|
76
|
(178)
|
17
|
17
|
14
|
13
|
Total noninterest
income
|
$
63
|
$ 282
|
$ (131)
|
$
67
|
$
66
|
$
62
|
$
62
|
Pre-tax
pre-provision income(e)
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
206
|
$ 460
|
$ (138)
|
$ 103
|
$ 111
|
$
131
|
$ 134
|
Provision for credit
losses
|
83
|
33
|
21
|
22
|
22
|
18
|
20
|
Pre-tax pre-provision
income
|
$
289
|
$ 493
|
$ (117)
|
$ 125
|
$ 133
|
$
149
|
$ 154
|
End of period core
customer deposits reconciliation
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
$
33,446
|
$
32,123
|
$
32,014
|
$ 30,332
|
$
29,636
|
Network transaction
deposits
|
|
|
(1,566)
|
(1,649)
|
(1,601)
|
(1,273)
|
(979)
|
Brokered CDs
|
|
|
(4,447)
|
(3,351)
|
(3,818)
|
(1,186)
|
(542)
|
Core customer
deposits
|
|
|
$
27,432
|
$
27,123
|
$
26,595
|
$ 27,873
|
$
28,115
|
|
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
|
YTD
|
|
|
|
|
|
($ in millions, except
per share data)
|
Dec
2023
|
Dec 2022
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
Efficiency ratio
reconciliation(a)
|
|
|
|
|
|
|
|
Federal Reserve
efficiency ratio
|
69.70 %
|
60.36 %
|
132.01 %
|
60.06 %
|
58.49 %
|
56.07 %
|
55.47 %
|
Fully tax-equivalent
adjustment
|
(1.13) %
|
(0.92) %
|
(3.29) %
|
(0.89) %
|
(0.85) %
|
(0.79) %
|
(0.77) %
|
Other intangible
amortization
|
(0.76) %
|
(0.71) %
|
(1.21) %
|
(0.69) %
|
(0.68) %
|
(0.66) %
|
(0.62) %
|
Fully tax-equivalent
efficiency ratio
|
67.82 %
|
58.74 %
|
127.54 %
|
58.50 %
|
56.96 %
|
54.64 %
|
54.08 %
|
FDIC special
assessment
|
(2.32) %
|
— %
|
(9.50) %
|
— %
|
— %
|
— %
|
— %
|
Announced
initiatives(b)
|
(7.02) %
|
(0.10) %
|
(53.92) %
|
— %
|
— %
|
— %
|
— %
|
Adjusted efficiency
ratio
|
58.48 %
|
58.65 %
|
64.12 %
|
58.50 %
|
56.96 %
|
54.64 %
|
54.08 %
|
One Time Item
Reconciliation
|
YTD
|
YTD
|
|
|
|
($ in millions, except
per share data)
|
Dec 2023
|
Dec 2023 per share
data
(diluted)
|
|
4Q23
|
4Q23 per share data
(diluted)
|
GAAP net income
(loss)
|
$
183
|
$
1.13
|
|
$
(91)
|
$
(0.62)
|
Loss on mortgage
portfolio sale, net(b)(c)
|
133
|
0.87
|
|
133
|
0.87
|
Net loss on sale of
investments(b)
|
65
|
0.43
|
|
65
|
0.43
|
FDIC special
assessment
|
31
|
0.20
|
|
31
|
0.20
|
Tax effect
|
(55)
|
(0.36)
|
|
(55)
|
(0.36)
|
Net income, excluding
one time items, net of tax
|
357
|
$
2.27
|
|
83
|
$
0.53
|
Less
preferred stock dividends
|
(12)
|
|
|
(3)
|
|
Net income available to common equity, excluding one
time items, net of
tax
|
$
345
|
|
|
$
80
|
|
One Time Item
Noninterest Income Reconciliation
|
YTD
|
|
|
($ in millions, except
per share data)
|
Dec 2023
|
|
4Q23
|
GAAP noninterest
income
|
$
63
|
|
$
(131)
|
Loss on mortgage
portfolio sale(b)
|
136
|
|
136
|
Net loss on sale of
investments(b)
|
65
|
|
65
|
Noninterest income,
excluding one time items
|
$
264
|
|
$
70
|
|
|
|
|
One Time Item
Noninterest Expense Reconciliation
|
YTD
|
|
|
($ in millions, except
per share data)
|
Dec 2023
|
|
4Q23
|
GAAP noninterest
expense
|
$
814
|
|
$
239
|
FDIC special
assessment
|
(31)
|
|
(31)
|
Noninterest expense,
excluding one time items
|
$
783
|
|
$
209
|
|
|
(a)
|
The efficiency ratio as
defined by the Federal Reserve guidance is noninterest expense
(which includes the provision for unfunded commitments) divided by
the sum of net interest income plus noninterest income, excluding
investment securities gains (losses), net. The fully tax-equivalent
efficiency ratio is noninterest expense (which includes the
provision for unfunded commitments), excluding other intangible
amortization, divided by the sum of fully tax-equivalent net
interest income plus noninterest income, excluding investment
securities gains (losses), net. The adjusted efficiency ratio is
noninterest expense (which includes the provision for unfunded
commitments), excluding other intangible amortization, FDIC special
assessment costs, and announced initiatives, divided by the sum of
fully tax-equivalent net interest income plus noninterest income,
excluding investment securities gains (losses), net and announced
initiatives. Management believes the adjusted efficiency ratio is a
meaningful measure as it enhances the comparability of net interest
income arising from taxable and tax-exempt sources and provides a
better measure as to how the Corporation is managing its expenses
by adjusting for one time costs like the FDIC special assessment
and announced initiatives.
|
(b)
|
The mortgage portfolio
sale and investments sold that are classified as one time items are
the result of a balance sheet repositioning that the Corporation
announced in fourth quarter of 2023.
|
(c)
|
Loss on mortgage
portfolio sale, net takes into account the provision for loan
losses that was reversed as a result of the sale of the
mortgages.
|
Investor Contact:
Ben
McCarville, Vice President, Director of Investor
Relations
920-491-7059
Media Contact:
Jennifer
Kaminski, Vice President, Public Relations Senior
Manager
920-491-7576
View original
content:https://www.prnewswire.com/news-releases/associated-banc-corp-reports-full-year-2023-earnings-of-1-13-per-common-share-or-2-27-per-common-share1-excluding-one-time-items-recognized-during-the-fourth-quarter-302045144.html
SOURCE Associated Banc-Corp