EX-99.1 2 asb2015630ex-991.htm EXHIBIT 99.1 ASB 2015.6.30 Ex-99.1


Exhibit 99.1
NEWS RELEASE
Investor Contact:
Teresa Gutierrez, 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 $0.31 per share
Earnings per share up 11% from prior year

GREEN BAY, Wis. -- July 16, 2015 -- Associated Banc-Corp (NYSE: ASB) today reported net income to common shareholders of $48 million, or $0.31 per common share, for the quarter ended June 30, 2015. This compares to net income to common shareholders of $45 million, or $0.28 per common share, for the quarter ended June 30, 2014.
“Steady loan growth, strong fee revenues, and a benign credit environment have all contributed to this quarter’s solid performance,” said President and CEO Philip B. Flynn. “We continue to optimize our delivery strategies, in terms of branches and digital channels, in response to evolving customer preferences. We are investing in more digital and mobile solutions, while being capital and expense disciplined.”
HIGHLIGHTS
•
Average loans grew $373 million, or 2% from the first quarter
•
Average Total Commercial loans grew $220 million, or 2% from the first quarter
•
Average Total Consumer loans grew $153 million, or 2% from the first quarter
•
Average deposits grew $571 million, or 3% from the first quarter
•
Average money market and savings balances grew a combined $523 million,
or 5% from the first quarter
•
Net interest margin of 2.83% declined 6 basis points from the first quarter
•
Noninterest income of $87 million increased $6 million, or 8% from the first quarter
•
Mortgage banking revenue increased $3 million from the first quarter
•
Noninterest expenses of $177 million increased $3 million, or 1% from the first quarter
•
Personnel expense increased $3 million which included $2 million in severance
•
Pretax income of $71 million increased $2 million, or 3% from the first quarter
•
During the second quarter, the Company repurchased 3.2 million shares of common stock
•
Return on average Tier 1 common equity was 10.55% for the second quarter
•
Capital ratios remain strong with a Tier 1 common equity ratio of 9.30% at June 30, 2015

- more -



SECOND QUARTER 2015 FINANCIAL RESULTS
Loans
Average loans of $18.2 billion increased $373 million, or 2% from the first quarter, and have increased $1.5 billion, or 9% from the year ago quarter. Commercial and business lending average balances grew $174 million, or 2% from the first quarter. Within commercial and business lending, the mortgage warehouse portfolio grew an average of $130 million during the quarter and was the largest contributor to commercial loan growth. Commercial real estate lending average balances grew $46 million, or 1% from the first quarter. Total consumer average loans were up $153 million compared to the prior quarter. Residential lending growth of $219 million was the largest contributor of loan growth for the quarter. Growth in total consumer lending was partially offset by continued run off in home equity and installment loans.
Deposits
Average deposits of $19.6 billion for the second quarter were up $571 million, or 3% compared to the first quarter and have increased $2.5 billion, or 14% from the year ago quarter. Money market average balances increased $448 million, or 5% from the first quarter. Savings average balances increased $75 million, or 6% from the prior quarter. Time deposits grew an average of $36 million during the quarter, continuing the growth trend experienced in the first quarter. Average checking balances were also slightly improved from the first quarter.
Net Interest Income and Net Interest Margin
Second quarter net interest income of $166 million was down $1 million, or 1% from the first quarter and down $2 million from the year ago quarter. During the quarter, the Company restructured its investment portfolio and sold over $1 billion of Fannie Mae and Freddie Mac mortgage backed securities and reinvested into Ginnie Mae securities, contributing to $1 million in lower portfolio income and generating a $1 million net gain on sale. This restructuring lowered our risk weighted assets and related capital requirements, while improving the liquidity of our portfolio and not materially changing its duration or income profile going forward.
Second quarter net interest margin was 2.83%, a decrease of 6 basis points from the 2.89% reported in the first quarter. The second quarter yield on earning assets declined 5 basis points to 3.15% from 3.20% in the prior quarter. The decline is primarily attributable to continued loan yield compression in the commercial real estate portfolio, payoffs in the home equity portfolio, and the previously mentioned investment portfolio restructuring. Second quarter deposit expense was unchanged at 21 basis points while overall funding costs increased 1 basis point to 40 basis points.
Noninterest Income and Expense
Noninterest income for the second quarter was $87 million, up $6 million or 8% from the first quarter, and up $14 million or 20% from the year ago quarter. In the second quarter, core fee-based revenues increased $2 million on higher trust, insurance, brokerage, and syndication fees. Mortgage banking income increased $3 million from the prior quarter on higher realized gains on sale. Second quarter net asset gains of $2 million were up $1 million from the prior quarter.
- more -



Noninterest income growth from the year ago quarter is primarily attributable to the Ahmann & Martin Co. insurance agency acquisition and improving mortgage banking income.
Total noninterest expense was $177 million, up $3 million or 1% from the first quarter, and up $9 million or 5% from the year ago quarter. In the second quarter, personnel expense increased $3 million which included $2 million in severance related to the restructuring of our securities brokerage business and the planned closure of thirteen branches. Occupancy expenses were lower in the current quarter due to a lease termination charge recorded in the first quarter. Business development and advertising expenses increased $2 million driven by the launch of a multifaceted advertising campaign in the second quarter.
The Company announced plans to close thirteen branches in the second half of 2015. The branch closures reflect changing customer branch usage patterns and a continuing shift to digital banking solutions. These branch closures will generate approximately $3 million in expense to be recognized by year end 2015, and should result in net savings in 2016 and beyond.
Taxes
Second quarter income taxes were $22 million, with an effective tax rate of 31%, compared to $22 million and an effective tax rate of 32% in the year ago period.
Credit
Net charge offs of $9 million were up $3 million from the first quarter, and up $6 million from the year ago quarter. Potential problem loans of $200 million were down 9% compared to the first quarter, and down 31% from the year ago quarter. The second quarter provision was essentially flat from the prior quarter at $5 million and reflects a benign credit environment.
Nonaccrual loans of $160 million were down 8% compared to the first quarter, and down 11% from the year ago quarter. The nonaccrual loans to total loans ratio improved to 0.88% in the second quarter, down from 0.97% in the prior quarter and down from 1.05% in the year ago quarter.
The Company’s allowance for loan losses of $262 million was down $4 million from first quarter, and down $10 million from the year ago quarter. The allowance for loan losses to total nonaccrual loans ratio improved to 163% in the second quarter, up from 152% in the prior and year ago quarters.
Capital Ratios
The Company’s capital position remains strong, with a Tier 1 common equity ratio of 9.30% at June 30, 2015.
During the second quarter, the Company issued $65 million of preferred stock with a 6.125% dividend rate for net proceeds of $63 million. Also during the quarter, the Company repurchased $63 million, or 3.2 million shares, of common stock at an average cost of $19.51 per share.
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 2015 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 16, 2015. Interested parties can listen to the call live on the internet through the investor relations section of the company's website, http://investor.associatedbank.com 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 2015 earnings call.
An audio archive of the webcast will be available on the company’s website at http://investor.associatedbank.com approximately fifteen minutes after the call is over.

ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $27 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,
 2015
 
March 31,
2015
 
Seql Qtr
$ Change
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
Comp Qtr
$ Change
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
375,369

 
$
355,541

 
$
19,828

 
$
444,113

 
$
381,287

 
$
549,883

 
$
(174,514
)
Interest-bearing deposits in other financial institutions
 
101,573

 
488,426

 
(386,853
)
 
571,924

 
74,945

 
78,233

 
23,340

Federal funds sold and securities purchased under agreements to resell
 
39,850

 
3,380

 
36,470

 
16,030

 
18,320

 
18,135

 
21,715

Securities held to maturity, at amortized cost
 
532,382

 
438,047

 
94,335

 
404,455

 
301,941

 
246,050

 
286,332

Securities available for sale, at fair value
 
5,407,998

 
5,358,310

 
49,688

 
5,396,812

 
5,345,422

 
5,506,379

 
(98,381
)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost
 
160,765

 
189,222

 
(28,457
)
 
189,107

 
188,875

 
186,247

 
(25,482
)
Loans held for sale
 
151,146

 
159,963

 
(8,817
)
 
154,935

 
141,672

 
78,657

 
72,489

Loans
 
18,303,252

 
17,979,032

 
324,220

 
17,593,846

 
17,159,090

 
17,045,052

 
1,258,200

Allowance for loan losses
 
(261,538
)
 
(265,268
)
 
3,730

 
(266,302
)
 
(266,262
)
 
(271,851
)
 
10,313

Loans, net
 
18,041,714

 
17,713,764

 
327,950

 
17,327,544

 
16,892,828

 
16,773,201

 
1,268,513

Premises and equipment, net
 
274,338

 
274,591

 
(253
)
 
274,688

 
272,283

 
264,735

 
9,603

Goodwill
 
968,844

 
968,774

 
70

 
929,168

 
929,168

 
929,168

 
39,676

Other intangible assets, net
 
79,055

 
77,984

 
1,071

 
67,582

 
69,201

 
70,538

 
8,517

Trading assets
 
35,386

 
42,336

 
(6,950
)
 
35,163

 
34,005

 
40,630

 
(5,244
)
Other assets
 
1,016,725

 
998,402

 
18,323

 
1,010,253

 
1,003,875

 
985,930

 
30,795

Total assets
 
$
27,185,145

 
$
27,068,740

 
$
116,405

 
$
26,821,774

 
$
25,653,822

 
$
25,727,786

 
$
1,457,359

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
$
4,332,171

 
$
4,570,872

 
$
(238,701
)
 
$
4,505,272

 
$
4,302,454

 
$
4,211,057

 
$
121,114

Interest-bearing deposits
 
14,937,392

 
15,280,720

 
(343,328
)
 
14,258,232

 
13,898,804

 
13,105,202

 
1,832,190

Total deposits
 
19,269,563

 
19,851,592

 
(582,029
)
 
18,763,504

 
18,201,258

 
17,316,259

 
1,953,304

Federal funds purchased and securities sold under agreements to repurchase
 
689,699

 
587,272

 
102,427

 
493,991

 
765,641

 
959,051

 
(269,352
)
Other short-term funding
 
905,837

 
75,265

 
830,572

 
574,297

 
664,539

 
1,378,120

 
(472,283
)
Long-term funding
 
3,179,734

 
3,429,925

 
(250,191
)
 
3,930,117

 
2,931,547

 
2,931,809

 
247,925

Trading liabilities
 
37,169

 
44,730

 
(7,561
)
 
37,329

 
36,003

 
43,311

 
(6,142
)
Accrued expenses and other liabilities
 
198,752

 
197,818

 
934

 
222,285

 
185,256

 
169,290

 
29,462

Total liabilities
 
24,280,754

 
24,186,602

 
94,152

 
24,021,523

 
22,784,244

 
22,797,840

 
1,482,914

Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred equity
 
122,015

 
59,727

 
62,288

 
59,727

 
61,024

 
61,024

 
60,991

Common stock
 
1,642

 
1,674

 
(32
)
 
1,665

 
1,719

 
1,750

 
(108
)
Surplus
 
1,450,200

 
1,505,170

 
(54,970
)
 
1,484,933

 
1,583,032

 
1,628,356

 
(178,156
)
Retained earnings
 
1,538,684

 
1,509,967

 
28,717

 
1,497,818

 
1,466,525

 
1,432,518

 
106,166

Accumulated other comprehensive income (loss)
 
2,594

 
24,800

 
(22,206
)
 
(4,850
)
 
(1,725
)
 
10,494

 
(7,900
)
Treasury stock
 
(210,744
)
 
(219,200
)
 
8,456

 
(239,042
)
 
(240,997
)
 
(204,196
)
 
(6,548
)
Total stockholders’ equity
 
2,904,391

 
2,882,138

 
22,253

 
2,800,251

 
2,869,578

 
2,929,946

 
(25,555
)
Total liabilities and stockholders’ equity
 
$
27,185,145

 
$
27,068,740

 
$
116,405

 
$
26,821,774

 
$
25,653,822

 
$
25,727,786

 
$
1,457,359



Page 1



Associated Banc-Corp
Consolidated Statements of Income (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended, June 30
 
Quarter
 
For The Six Months Ended, June 30
 
Year-to-Date
(in thousands, except per share amounts)
 
2015
 
2014
 
$ Change
 
% Change
 
2015
 
2014
 
$ Change
 
% Change
Interest Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
 
$152,417
 
$
146,629

 
$
5,788

 
3.9
 %
 
$
304,362

 
$
290,016

 
$
14,346

 
4.9
 %
Interest and dividends on investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Taxable
 
23,868

 
26,109

 
(2,241
)
 
(8.6
)%
 
48,960

 
52,366

 
(3,406
)
 
(6.5
)%
Tax-exempt
 
7,565

 
7,030

 
535

 
7.6
 %
 
15,452

 
14,001

 
1,451

 
10.4
 %
Other interest
 
1,771

 
1,862

 
(91
)
 
(4.9
)%
 
3,463

 
3,311

 
152

 
4.6
 %
Total interest income
 
185,621

 
181,630

 
3,991

 
2.2
 %
 
372,237

 
359,694

 
12,543

 
3.5
 %
Interest Expense
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Interest on deposits
 
8,141

 
6,195

 
1,946

 
31.4
 %
 
15,760

 
12,354

 
3,406

 
27.6
 %
Interest on Federal funds purchased and securities sold under agreements to repurchase
 
235

 
306

 
(71
)
 
(23.2
)%
 
466

 
611

 
(145
)
 
(23.7
)%
Interest on other short-term funding
 
115

 
280

 
(165
)
 
(58.9
)%
 
196

 
396

 
(200
)
 
(50.5
)%
Interest on long-term funding
 
10,642

 
6,146

 
4,496

 
73.2
 %
 
21,514

 
12,657

 
8,857

 
70.0
 %
Total interest expense
 
19,133

 
12,927

 
6,206

 
48.0
 %
 
37,936

 
26,018

 
11,918

 
45.8
 %
Net Interest Income
 
166,488

 
168,703

 
(2,215
)
 
(1.3
)%
 
334,301

 
333,676

 
625

 
0.2
 %
Provision for credit losses
 
5,000

 
5,000

 
—

 
—
 %
 
9,500

 
10,000

 
(500
)
 
(5.0
)%
Net interest income after provision for credit losses
 
161,488

 
163,703

 
(2,215
)
 
(1.4
)%
 
324,801

 
323,676

 
1,125

 
0.3
 %
Noninterest Income
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Trust service fees
 
12,515

 
12,017

 
498

 
4.1
 %
 
24,602

 
23,728

 
874

 
3.7
 %
Service charges on deposit accounts
 
15,703

 
17,412

 
(1,709
)
 
(9.8
)%
 
31,509

 
33,812

 
(2,303
)
 
(6.8
)%
Card-based and other nondeposit fees
 
13,597

 
12,577

 
1,020

 
8.1
 %
 
26,013

 
25,086

 
927

 
3.7
 %
Insurance commissions
 
20,077

 
13,651

 
6,426

 
47.1
 %
 
39,805

 
25,968

 
13,837

 
53.3
 %
Brokerage and annuity commissions
 
4,192

 
4,520

 
(328
)
 
(7.3
)%
 
7,875

 
8,553

 
(678
)
 
(7.9
)%
Total core fee-based revenue
 
66,084

 
60,177

 
5,907

 
9.8
 %
 
129,804

 
117,147

 
12,657

 
10.8
 %
Mortgage banking, net
 
9,941

 
5,362

 
4,579

 
85.4
 %
 
17,349

 
11,723

 
5,626

 
48.0
 %
Capital market fees, net
 
2,692

 
2,099

 
593

 
28.3
 %
 
5,159

 
4,421

 
738

 
16.7
 %
Bank owned life insurance income
 
2,381

 
3,011

 
(630
)
 
(20.9
)%
 
5,256

 
7,331

 
(2,075
)
 
(28.3
)%
Asset gains, net
 
1,893

 
899

 
994

 
110.6
 %
 
2,989

 
1,627

 
1,362

 
83.7
 %
Investment securities gains, net
 
1,242

 
34

 
1,208

 
N/M

 
1,242

 
412

 
830

 
201.5
 %
Other
 
2,288

 
665

 
1,623

 
244.1
 %
 
4,798

 
3,107

 
1,691

 
54.4
 %
Total noninterest income
 
86,521

 
72,247

 
14,274

 
19.8
 %
 
166,597

 
145,768

 
20,829

 
14.3
 %
Noninterest Expense
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Personnel expense
 
102,986

 
97,793

 
5,193

 
5.3
 %
 
203,138

 
195,491

 
7,647

 
3.9
 %
Occupancy
 
14,308

 
13,785

 
523

 
3.8
 %
 
31,991

 
29,345

 
2,646

 
9.0
 %
Equipment
 
5,739

 
6,227

 
(488
)
 
(7.8
)%
 
11,511

 
12,503

 
(992
)
 
(7.9
)%
Technology
 
16,354

 
14,594

 
1,760

 
12.1
 %
 
31,912

 
27,318

 
4,594

 
16.8
 %
Business development and advertising
 
6,829

 
5,077

 
1,752

 
34.5
 %
 
12,156

 
10,139

 
2,017

 
19.9
 %
Other intangible amortization
 
888

 
991

 
(103
)
 
(10.4
)%
 
1,689

 
1,982

 
(293
)
 
(14.8
)%
Loan expense
 
3,681

 
3,620

 
61

 
1.7
 %
 
6,677

 
6,407

 
270

 
4.2
 %
Legal and professional fees
 
4,344

 
4,436

 
(92
)
 
(2.1
)%
 
8,882

 
8,624

 
258

 
3.0
 %
Foreclosure / OREO expense
 
1,303

 
1,575

 
(272
)
 
(17.3
)%
 
2,728

 
3,471

 
(743
)
 
(21.4
)%
FDIC expense
 
6,000

 
4,945

 
1,055

 
21.3
 %
 
12,500

 
9,946

 
2,554

 
25.7
 %
Other
 
14,384

 
14,882

 
(498
)
 
(3.3
)%
 
27,887

 
30,357

 
(2,470
)
 
(8.1
)%
Total noninterest expense
 
176,816

 
167,925

 
8,891

 
5.3
 %
 
351,071

 
335,583

 
15,488

 
4.6
 %
Income before income taxes
 
71,193

 
68,025

 
3,168

 
4.7
 %
 
140,327

 
133,861

 
6,466

 
4.8
 %
Income tax expense
 
21,793

 
21,660

 
133

 
0.6
 %
 
44,255

 
42,297

 
1,958

 
4.6
 %
Net income
 
49,400

 
46,365

 
3,035

 
6.5
 %
 
96,072

 
91,564

 
4,508

 
4.9
 %
Preferred stock dividends
 
1,545

 
1,278

 
267

 
20.9
 %
 
2,773

 
2,522

 
251

 
10.0
 %
Net income available to common equity
 
$
47,855

 
$
45,087

 
$
2,768

 
6.1
 %
 
$
93,299

 
$
89,042

 
$
4,257

 
4.8
 %
Earnings Per Common Share:
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Basic
 
$
0.32

 
$
0.28

 
$
0.04

 
14.3
 %
 
$
0.62

 
$
0.55

 
$
0.07

 
12.7
 %
Diluted
 
$
0.31

 
$
0.28

 
$
0.03

 
10.7
 %
 
$
0.61

 
$
0.55

 
$
0.06

 
10.9
 %
Average Common Shares Outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Basic
 
149,903

 
159,940

 
(10,037
)
 
(6.3
)%
 
149,986

 
160,699

 
(10,713
)
 
(6.7
)%
Diluted
 
151,108

 
160,838

 
(9,730
)
 
(6.0
)%
 
151,129

 
161,513

 
(10,384
)
 
(6.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
2Q15
 
1Q15
 
$ Change
 
% Change
 
4Q14
 
3Q14
 
2Q14
 
$ Change
 
% Change
Interest Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
 
$
152,417

 
$
151,945

 
$
472

 
0.3
 %
 
$
156,536

 
$
152,030

 
$
146,629

 
$
5,788

 
3.9
 %
Interest and dividends on investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
23,868

 
25,092

 
(1,224
)
 
(4.9
)%
 
25,061

 
25,037

 
26,109

 
(2,241
)
 
(8.6
)%
Tax-exempt
 
7,565

 
7,887

 
(322
)
 
(4.1
)%
 
7,580

 
7,483

 
7,030

 
535

 
7.6
 %
Other interest
 
1,771

 
1,692

 
79

 
4.7
 %
 
1,821

 
1,503

 
1,862

 
(91
)
 
(4.9
)%
Total interest income
 
185,621

 
186,616

 
(995
)
 
(0.5
)%
 
190,998

 
186,053

 
181,630

 
3,991

 
2.2
 %
Interest Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
 
8,141

 
7,619

 
522

 
6.9
 %
 
7,319

 
6,621

 
6,195

 
1,946

 
31.4
 %
Interest on Federal funds purchased and securities sold under agreements to repurchase
 
235

 
231

 
4

 
1.7
 %
 
218

 
390

 
306

 
(71
)
 
(23.2
)%
Interest on other short-term funding
 
115

 
81

 
34

 
42.0
 %
 
156

 
233

 
280

 
(165
)
 
(58.9
)%
Interest on long-term funding
 
10,642

 
10,872

 
(230
)
 
(2.1
)%
 
8,644

 
6,179

 
6,146

 
4,496

 
73.2
 %
Total interest expense
 
19,133

 
18,803

 
330

 
1.8
 %
 
16,337

 
13,423

 
12,927

 
6,206

 
48.0
 %
Net Interest Income
 
166,488

 
167,813

 
(1,325
)
 
(0.8
)%
 
174,661

 
172,630

 
168,703

 
(2,215
)
 
(1.3
)%
Provision for credit losses
 
5,000

 
4,500

 
500

 
11.1
 %
 
5,000

 
1,000

 
5,000

 
—

 
—
 %
Net interest income after provision for credit losses
 
161,488

 
163,313

 
(1,825
)
 
(1.1
)%
 
169,661


171,630


163,703

 
(2,215
)
 
(1.4
)%
Noninterest Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust service fees
 
12,515

 
12,087

 
428

 
3.5
 %
 
12,457

 
12,218

 
12,017

 
498

 
4.1
 %
Service charges on deposit accounts
 
15,703

 
15,806

 
(103
)
 
(0.7
)%
 
17,006

 
17,961

 
17,412

 
(1,709
)
 
(9.8
)%
Card-based and other nondeposit fees
 
13,597

 
12,416

 
1,181

 
9.5
 %
 
12,019

 
12,407

 
12,577

 
1,020

 
8.1
 %
Insurance commissions
 
20,077

 
19,728

 
349

 
1.8
 %
 
10,593

 
7,860

 
13,651

 
6,426

 
47.1
 %
Brokerage and annuity commissions
 
4,192

 
3,683

 
509

 
13.8
 %
 
3,496

 
4,040

 
4,520

 
(328
)
 
(7.3
)%
Total core fee-based revenue
 
66,084

 
63,720

 
2,364

 
3.7
 %
 
55,571

 
54,486

 
60,177

 
5,907

 
9.8
 %
Mortgage banking, net
 
9,941

 
7,408

 
2,533

 
34.2
 %
 
2,928

 
6,669

 
5,362

 
4,579

 
85.4
 %
Capital market fees, net
 
2,692

 
2,467

 
225

 
9.1
 %
 
2,613

 
2,939

 
2,099

 
593

 
28.3
 %
Bank owned life insurance income
 
2,381

 
2,875

 
(494
)
 
(17.2
)%
 
2,739

 
3,506

 
3,011

 
(630
)
 
(20.9
)%
Asset gains, net
 
1,893

 
1,096

 
797

 
72.7
 %
 
3,727

 
4,934

 
899

 
994

 
110.6
 %
Investment securities gains, net
 
1,242

 
—

 
1,242

 
N/M

 
25

 
57

 
34

 
1,208

 
N/M

Other
 
2,288

 
2,510

 
(222
)
 
(8.8
)%
 
2,040

 
2,317

 
665

 
1,623

 
244.1
 %
Total noninterest income
 
86,521

 
80,076

 
6,445

 
8.0
 %
 
69,643

 
74,908

 
72,247

 
14,274

 
19.8
 %
Noninterest Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personnel expense
 
102,986

 
100,152

 
2,834

 
2.8
 %
 
97,258

 
97,650

 
97,793

 
5,193

 
5.3
 %
Occupancy
 
14,308

 
17,683

 
(3,375
)
 
(19.1
)%
 
14,589

 
13,743

 
13,785

 
523

 
3.8
 %
Equipment
 
5,739

 
5,772

 
(33
)
 
(0.6
)%
 
6,148

 
6,133

 
6,227

 
(488
)
 
(7.8
)%
Technology
 
16,354

 
15,558

 
796

 
5.1
 %
 
14,581

 
13,573

 
14,594

 
1,760

 
12.1
 %
Business development and advertising
 
6,829

 
5,327

 
1,502

 
28.2
 %
 
8,538

 
7,467

 
5,077

 
1,752

 
34.5
 %
Other intangible amortization
 
888

 
801

 
87

 
10.9
 %
 
775

 
990

 
991

 
(103
)
 
(10.4
)%
Loan expense
 
3,681

 
2,996

 
685

 
22.9
 %
 
3,646

 
3,813

 
3,620

 
61

 
1.7
 %
Legal and professional fees
 
4,344

 
4,538

 
(194
)
 
(4.3
)%
 
4,257

 
4,604

 
4,436

 
(92
)
 
(2.1
)%
Foreclosure / OREO expense
 
1,303

 
1,425

 
(122
)
 
(8.6
)%
 
1,168

 
2,083

 
1,575

 
(272
)
 
(17.3
)%
FDIC expense
 
6,000

 
6,500

 
(500
)
 
(7.7
)%
 
6,956

 
6,859

 
4,945

 
1,055

 
21.3
 %
Other
 
14,384

 
13,503

 
881

 
6.5
 %
 
13,889

 
14,938

 
14,882

 
(498
)
 
(3.3
)%
Total noninterest expense
 
176,816

 
174,255

 
2,561

 
1.5
 %
 
171,805


171,853


167,925

 
8,891

 
5.3
 %
Income before income taxes
 
71,193

 
69,134

 
2,059

 
3.0
 %
 
67,499


74,685


68,025

 
3,168

 
4.7
 %
Income tax expense
 
21,793

 
22,462

 
(669
)
 
(3.0
)%
 
18,761

 
24,478

 
21,660

 
133

 
0.6
 %
Net income
 
49,400

 
46,672


2,728

 
5.8
 %
 
48,738


50,207


46,365

 
3,035

 
6.5
 %
Preferred stock dividends
 
1,545

 
1,228

 
317

 
25.8
 %
 
1,225

 
1,255

 
1,278

 
267

 
20.9
 %
Net income available to common equity
 
$
47,855

 
$
45,444

 
$
2,411

 
5.3
 %
 
$
47,513


$
48,952


$
45,087

 
$
2,768

 
6.1
 %
Earnings Per Common Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.32

 
$
0.30

 
$
0.02

 
6.7
 %
 
$
0.31

 
$
0.31

 
$
0.28

 
$
0.04

 
14.3
 %
Diluted
 
$
0.31

 
$
0.30

 
$
0.01

 
3.3
 %
 
$
0.31

 
$
0.31

 
$
0.28

 
$
0.03

 
10.7
 %
Average Common Shares Outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
149,903

 
150,070

 
(167
)
 
(0.1
)%
 
151,931

 
155,925

 
159,940

 
(10,037
)
 
(6.3
)%
Diluted
 
151,108

 
151,164

 
(56
)
 
—
 %
 
153,083

 
156,991

 
160,838

 
(9,730
)
 
(6.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M=Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Page 3



Associated Banc-Corp
Selected Quarterly Information
($ in millions, except per share and full time
equivalent employee data)
 
YTD 2015
YTD 2014
2Q15
1Q15
4Q14
3Q14
2Q14
Per Common Share Data
 
 
 
 
 
 
 
 
Dividends
 
$
0.20

$
0.18

$
0.10

$
0.10

$
0.10

$
0.09

$
0.09

Market Value:
 
 
 
 
 
 
 
 
High
 
20.84

18.39

20.84

19.07

19.37

18.90

18.39

Low
 
16.62

15.58

18.50

16.62

16.75

17.42

16.82

Close
 
20.27

18.08

20.27

18.60

18.63

17.42

18.08

Book value
 
18.44

17.99

18.44

18.38

18.32

18.15

17.99

Tier 1 common equity / share (1) (6)
 
12.10

12.04

12.10

11.97

12.09

12.10

12.04

Tangible book value / share
 
$
11.90

$
12.11

$
11.90

$
11.95

$
12.06

$
12.09

$
12.11

Performance Ratios (annualized)
 
 
 
 
 
 
 
 
Return on average assets
 
0.73
 %
0.75
 %
0.74
 %
0.71
 %
0.75
 %
0.78
 %
0.75
 %
Return on average tangible common equity
 
10.39

9.51

10.62

10.16

10.27

10.35

9.56

Return on average Tier 1 common equity (1) (6)
 
10.38

9.52

10.55

10.22

10.35

10.38

9.56

Effective tax rate
 
31.54

31.60

30.61

32.49

27.79

32.77

31.84

Dividend payout ratio (2)
 
32.26

32.73

31.25

33.33

32.26

29.03

32.14

Average Balances
 
 
 
 
 
 
 
 
Common stockholders’ equity
 
$
2,790

$
2,828

$
2,794

$
2,785

$
2,772

$
2,815

$
2,830

Average Tier 1 common equity (1) (6)
 
$
1,812

$
1,896

$
1,820

$
1,804

$
1,821

$
1,871

$
1,892

Selected Trend Information
 
 
 
 
 
 
 
 
Average full time equivalent employees
 
4,443

4,474

4,465

4,422

4,320

4,359

4,431

Trust assets under management, at market value
 
$
8,068

$
7,720

$
8,068

$
8,138

$
7,993

$
7,700

$
7,720

Total revenue (3)
 
$
511

$
489

$
258

$
253

$
249

$
252

$
246

Core fee-based revenue (4)
 
$
130

$
117

$
66

$
64

$
56

$
54

$
60

Mortgage loans originated for sale during period
 
$
619

$
479

$
351

$
268

$
292

$
298

$
276

Mortgage portfolio serviced for others
 
$
7,898

$
8,052

$
7,898

$
7,920

$
7,999

$
8,012

$
8,052

Mortgage servicing rights, net / Portfolio serviced for others
 
0.77
 %
0.76
 %
0.77%

0.75
 %
0.75
 %
0.76
 %
0.76
 %
At Period End
 
 
 
 
 
 
 
 
Loans / deposits
 
 
 
94.99%

90.57
 %
93.77
 %
94.27
 %
98.43
 %
Stockholders’ equity / assets
 
 
 
10.68%

10.65
 %
10.44
 %
11.19
 %
11.39
 %
Tangible common equity / tangible assets (5)
 
 
 
6.85%

7.04
 %
6.97
 %
7.57
 %
7.79
 %
Tangible equity / tangible assets (5)
 
 
 
7.32%

7.27
 %
7.20
 %
7.82
 %
8.03
 %
Shares outstanding, end of period
 
 
 
150,862

153,567

149,560

154,743

159,480

Capital (6)
 
 
 
 
 
 
 
 
Risk weighted assets (7) (8)
 
 
 
$
19,629

$
19,565

$
18,568

$
18,031

$
17,911

Tier 1 common equity (1)
 
 
 
$
1,825

$
1,838

$
1,808

$
1,873

$
1,920

Tier 1 common equity / risk-weighted assets (7) (8)
 
 
 
9.30
 %
9.39
 %
9.74
 %
10.39
 %
10.72
 %
Tier 1 leverage ratio (7) (8)
 
 
 
7.53
 %
7.39
 %
7.48
 %
7.87
 %
8.26
 %
Tier 1 risk-based capital ratio (7) (8)
 
 
 
9.89
 %
9.70
 %
10.06
 %
10.73
 %
11.06
 %
Total risk-based capital ratio (7) (8)
 
 
 
12.41
 %
12.21
 %
12.66
 %
11.98
 %
12.31
 %
Non-GAAP Financial Measures Reconciliation
 
 
 
 
 
 
 
 
Common Equity Tier 1 Reconciliation (1):
 
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
$
2,904

$
2,882

$
2,800

$
2,870

$
2,930

Accumulated other comprehensive income (AOCI)
 
 
 
$
(2
)
$
(25
)
$
5

$
1

$
(11
)
Preferred equity
 
 
 
$
(122
)
$
(59
)
$
(60
)
$
(61
)
$
(61
)
Intangible assets
 
 
 
$
(951
)
$
(951
)
$
(937
)
$
(937
)
$
(938
)
Deferred tax assets (DTAs) / Disallowed servicing assets
 
 
 
$
(4
)
$
(9
)
$
—

$
—

$
—

Common Equity Tier 1
 
 
 
$
1,825

$
1,838

$
1,808

$
1,873

$
1,920

Efficiency Ratio Reconciliation:
 
 
 
 
 
 
 
 
Efficiency ratio (9)
 
70.26
 %
70.05
 %
70.23
 %
70.30
 %
70.33
 %
69.44
 %
69.70
 %
Taxable equivalent adjustment
 
(1.38
)%
(1.34
)%
(1.34
)%
(1.42
)%
(1.40
)%
(1.36
)%
(1.32
)%
Asset gains, net
 
0.41
 %
0.24
 %
0.51
 %
0.30
 %
1.05
 %
1.36
 %
0.26
 %
Other intangible amortization
 
(0.34
)%
(0.41
)%
(0.35
)%
(0.32
)%
(0.32
)%
(0.40
)%
(0.41
)%
Efficiency ratio, fully taxable equivalent (9)
 
68.95
 %
68.54
 %
69.05
 %
68.86
 %
69.66
 %
69.04
 %
68.23
 %
(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)
Ratio is based upon basic earnings per common share.
(3)
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 Pages 2 and 3 in the Consolidated Statements of Income and Pages 7 and 8 in the Net Interest Income Analysis.
(4)
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 Pages 2 and 3 in the Consolidated Statements of Income.
(5)
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.
(6)
Prior to 2015, the regulatory capital requirements effective for the Corporation followed the Capital Accord of the Basel Committee on Banking Supervision ("Basel I"). Beginning January 1, 2015, the regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions from Basel I over the next three years to full implementation by January 1, 2018.
(7)
June 30, 2015 data is estimated.
(8)
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.
(9)
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).

Page 4



Associated Banc-Corp
Selected Asset Quality Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Allowance for Loan Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
265,268

 
$
266,302

 
(0.4
)%
 
$
266,262

 
$
271,851

 
$
267,916

 
(1.0
)%
Provision for loan losses
 
5,000

 
4,500

 
11.1
 %
 
4,500

 
(3,000
)
 
6,500

 
(23.1
)%
Charge offs
 
(14,537
)
 
(13,270
)
 
9.5
 %
 
(8,778
)
 
(14,850
)
 
(9,107
)
 
59.6
 %
Recoveries
 
5,807

 
7,736

 
(24.9
)%
 
4,318

 
12,261

 
6,542

 
(11.2
)%
Net charge offs
 
(8,730
)
 
(5,534
)
 
57.8
 %
 
(4,460
)
 
(2,589
)
 
(2,565
)
 
240.4
 %
Ending balance
 
$
261,538

 
$
265,268

 
(1.4
)%
 
$
266,302

 
$
266,262

 
$
271,851

 
(3.8
)%
Allowance for Unfunded Commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
24,900

 
$
24,900

 
—
 %
 
$
24,400

 
$
20,400

 
$
21,900

 
13.7
 %
Provision for unfunded commitments
 
—

 
—

 
N/M

 
500

 
4,000

 
(1,500
)
 
(100.0
)%
Ending balance
 
$
24,900

 
$
24,900

 
—
 %
 
$
24,900

 
$
24,400

 
$
20,400

 
22.1
 %
Allowance for credit losses
 
$
286,438

 
$
290,168

 
(1.3
)%
 
$
291,202

 
$
290,662

 
$
292,251

 
(2.0
)%
Net Charge Offs
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Commercial and industrial
 
$
3,921

 
$
4,650

 
(15.7
)%
 
$
1,323

 
$
572

 
$
(1,377
)
 
(384.7
)%
Commercial real estate—owner occupied
 
1,198

 
739

 
62.1
 %
 
134

 
2,210

 
(550
)
 
(317.8
)%
Lease financing
 
—

 
—

 
N/M

 
9

 
(6
)
 
29

 
(100.0
)%
Commercial and business lending
 
5,119

 
5,389

 
(5.0
)%
 
1,466

 
2,776

 
(1,898
)
 
(369.7
)%
Commercial real estate—investor
 
1,856

 
(2,529
)
 
(173.4
)%
 
(132
)
 
(4,065
)
 
(239
)
 
(876.6
)%
Real estate construction
 
(673
)
 
(743
)
 
(9.4
)%
 
(116
)
 
350

 
795

 
(184.7
)%
Commercial real estate lending
 
1,183

 
(3,272
)
 
(136.2
)%
 
(248
)
 
(3,715
)
 
556

 
112.8
 %
Total commercial
 
6,302

 
2,117

 
197.7
 %
 
1,218

 
(939
)
 
(1,342
)
 
(569.6
)%
Home equity revolving lines of credit
 
246

 
1,220

 
(79.8
)%
 
1,094

 
1,098

 
1,380

 
(82.2
)%
Home equity loans 1st liens
 
169

 
362

 
(53.3
)%
 
206

 
118

 
448

 
(62.3
)%
Home equity loans junior liens
 
118

 
423

 
(72.1
)%
 
457

 
728

 
948

 
(87.6
)%
Home equity
 
533

 
2,005

 
(73.4
)%
 
1,757

 
1,944

 
2,776

 
(80.8
)%
Installment and credit cards
 
786

 
769

 
2.2
 %
 
990

 
910

 
247

 
218.2
 %
Residential mortgage
 
1,109

 
643

 
72.5
 %
 
495

 
674

 
884

 
25.5
 %
Total consumer
 
2,428

 
3,417

 
(28.9
)%
 
3,242

 
3,528

 
3,907

 
(37.9
)%
Total net charge offs
 
$
8,730

 
$
5,534

 
57.8
 %
 
$
4,460

 
$
2,589

 
$
2,565

 
240.4
 %
Net Charge Offs to Average Loans (in basis points) *
 
Jun 30, 2015
 
Mar 31, 2015
 
 
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
 
Commercial and industrial
 
26

 
32

 
 
 
9

 
4

 
(10
)
 
 
Commercial real estate—owner occupied
 
48

 
30

 
 
 
5

 
84

 
(20
)
 
 
Lease financing
 
—

 
—

 
 
 
7

 
(5
)
 
22

 
 
Commercial and business lending
 
29

 
31

 
 
 
9

 
17

 
(12
)
 
 
Commercial real estate—investor
 
24

 
(33
)
 
 
 
(2
)
 
(54
)
 
(3
)
 
 
Real estate construction
 
(26
)
 
(30
)
 
 
 
(5
)
 
14

 
33

 
 
Commercial real estate lending
 
11

 
(32
)
 
 
 
(2
)
 
(37
)
 
6

 
 
Total commercial
 
22

 
8

 
 
 
4

 
(3
)
 
(5
)
 
 
Home equity revolving lines of credit
 
11

 
56

 
 
 
49

 
50

 
64

 
 
Home equity loans 1st liens
 
13

 
26

 
 
 
14

 
7

 
26

 
 
Home equity loans junior liens
 
32

 
108

 
 
 
107

 
159

 
196

 
 
Home equity
 
14

 
51

 
 
 
42

 
45

 
64

 
 
Installment and credit cards
 
73

 
70

 
 
 
86

 
78

 
25

 
 
Residential mortgage
 
9

 
6

 
 
 
4

 
6

 
9

 
 
Total consumer
 
14

 
21

 
 
 
19

 
22

 
25

 
 
Total net charge offs
 
19

 
13

 
 
 
10

 
6

 
6

 
 
Credit Quality
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Nonaccrual loans
 
$
160,361

 
$
174,346

 
(8.0
)%
 
$
177,413

 
$
184,138

 
$
179,226

 
(10.5
)%
Other real estate owned (OREO)
 
13,557

 
14,926

 
(9.2
)%
 
16,732

 
16,840

 
17,729

 
(23.5
)%
Total nonperforming assets
 
$
173,918

 
$
189,272

 
(8.1
)%
 
$
194,145

 
$
200,978

 
$
196,955

 
(11.7
)%
Loans 90 or more days past due and still accruing
 
$
1,662

 
$
1,715

 
(3.1
)%
 
$
1,623

 
$
1,690

 
$
1,776

 
(6.4
)%
Allowance for loan losses / loans
 
1.43
%
 
1.48
%
 
 
 
1.51
%
 
1.55
%
 
1.59
%
 
 
Allowance for loan losses / nonaccrual loans
 
163.09

 
152.15

 
 
 
150.10

 
144.60

 
151.68

 
 
Nonaccrual loans / total loans
 
0.88

 
0.97

 
 
 
1.01

 
1.07

 
1.05

 
 
Nonperforming assets / total loans plus OREO
 
0.95

 
1.05

 
 
 
1.10

 
1.17

 
1.15

 
 
Nonperforming assets / total assets
 
0.64

 
0.70

 
 
 
0.72

 
0.78

 
0.77

 
 
Net charge offs / average loans (annualized)
 
0.19

 
0.13

 
 
 
0.10

 
0.06

 
0.06

 
 
Year-to-date net charge offs / average loans
 
0.16

 
0.13

 
 
 
0.09

 
0.08

 
0.10

 
 
Nonaccrual loans by type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
64,738

 
$
61,620

 
5.1
 %
 
$
49,663

 
$
51,143

 
$
40,846

 
58.5
 %
Commercial real estate—owner occupied
 
18,821

 
21,861

 
(13.9
)%
 
25,825

 
24,340

 
31,725

 
(40.7
)%
Lease financing
 
1,656

 
1,720

 
(3.7
)%
 
1,801

 
1,947

 
1,541

 
7.5
 %
Commercial and business lending
 
85,215

 
85,201

 
—
 %
 
77,289

 
77,430

 
74,112

 
15.0
 %
Commercial real estate—investor
 
6,090

 
13,742

 
(55.7
)%
 
22,685

 
25,106

 
28,135

 
(78.4
)%
Real estate construction
 
2,906

 
5,423

 
(46.4
)%
 
5,399

 
8,187

 
6,988

 
(58.4
)%
Commercial real estate lending
 
8,996

 
19,165

 
(53.1
)%
 
28,084

 
33,293

 
35,123

 
(74.4
)%
Total commercial
 
94,211

 
104,366

 
(9.7
)%
 
105,373

 
110,723

 
109,235

 
(13.8
)%
Home equity revolving lines of credit
 
8,420

 
9,171

 
(8.2
)%
 
9,853

 
10,154

 
10,056

 
(16.3
)%
Home equity loans 1st liens
 
4,630

 
5,111

 
(9.4
)%
 
5,290

 
4,664

 
4,634

 
(0.1
)%
Home equity loans junior liens
 
5,356

 
6,145

 
(12.8
)%
 
6,598

 
6,443

 
6,183

 
(13.4
)%
Home equity
 
18,406

 
20,427

 
(9.9
)%
 
21,741

 
21,261

 
20,873

 
(11.8
)%
Installment and credit cards
 
454

 
515

 
(11.8
)%
 
613

 
653

 
771

 
(41.1
)%
Residential mortgage
 
47,290

 
49,038

 
(3.6
)%
 
49,686

 
51,501

 
48,347

 
(2.2
)%
Total consumer
 
66,150

 
69,980

 
(5.5
)%
 
72,040

 
73,415

 
69,991

 
(5.5
)%
Total nonaccrual loans
 
$
160,361

 
$
174,346

 
(8.0
)%
 
$
177,413

 
$
184,138

 
$
179,226

 
(10.5
)%
* Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M = Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 5



Associated Banc-Corp
Selected Asset Quality Information (continued)
(in thousands)
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Restructured loans (accruing)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
32,063

 
$
26,466

 
21.1
 %
 
$
33,892

 
$
36,955

 
$
28,849

 
11.1
 %
Commercial real estate—owner occupied
 
5,433

 
9,780

 
(44.4
)%
 
10,454

 
11,574

 
12,168

 
(55.4
)%
Commercial and business lending
 
37,496

 
36,246

 
3.4
 %
 
44,346

 
48,529

 
41,017

 
(8.6
)%
Commercial real estate—investor
 
22,009

 
22,775

 
(3.4
)%
 
23,127

 
24,440

 
41,758

 
(47.3
)%
Real estate construction
 
714

 
717

 
(0.4
)%
 
727

 
805

 
1,224

 
(41.7
)%
Commercial real estate lending
 
22,723

 
23,492

 
(3.3
)%
 
23,854

 
25,245

 
42,982

 
(47.1
)%
Total commercial
 
60,219

 
59,738

 
0.8
 %
 
68,200

 
73,774

 
83,999

 
(28.3
)%
Home equity revolving lines of credit
 
1,222

 
1,251

 
(2.3
)%
 
1,508

 
1,531

 
1,527

 
(20.0
)%
Home equity loans 1st liens
 
1,769

 
1,846

 
(4.2
)%
 
1,857

 
1,867

 
1,674

 
5.7
 %
Home equity loans junior liens
 
6,610

 
6,642

 
(0.5
)%
 
6,701

 
7,184

 
7,243

 
(8.7
)%
Home equity
 
9,601

 
9,739

 
(1.4
)%
 
10,066

 
10,582

 
10,444

 
(8.1
)%
Installment and credit cards
 
796

 
891

 
(10.7
)%
 
974

 
1,106

 
1,185

 
(32.8
)%
Residential mortgage
 
19,604

 
18,449

 
6.3
 %
 
18,976

 
19,141

 
18,753

 
4.5
 %
Total consumer
 
30,001

 
29,079

 
3.2
 %
 
30,016

 
30,829

 
30,382

 
(1.3
)%
Total restructured loans (accruing)
 
$
90,220

 
$
88,817

 
1.6
 %
 
$
98,216

 
$
104,603

 
$
114,381

 
(21.1
)%
Restructured loans in nonaccrual loans (not included above)
 
$
43,699

 
$
53,553

 
(18.4
)%
 
$
57,656

 
$
63,314

 
$
72,388

 
(39.6
)%
Loans Past Due 30-89 Days
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Commercial and industrial
 
$
6,357

 
$
1,717

 
270.2
 %
 
$
14,747

 
$
3,947

 
$
2,519

 
152.4
 %
Commercial real estate—owner occupied
 
1,090

 
1,849

 
(41.0
)%
 
10,628

 
2,675

 
6,323

 
(82.8
)%
Lease financing
 
—

 
—

 
N/M

 
—

 
—

 
556

 
(100.0
)%
Commercial and business lending
 
7,447

 
3,566

 
108.8
 %
 
25,375

 
6,622

 
9,398

 
(20.8
)%
Commercial real estate—investor
 
19,843

 
2,215

 
795.8
 %
 
1,208

 
15,869

 
2,994

 
562.8
 %
Real estate construction
 
312

 
317

 
(1.6
)%
 
984

 
399

 
258

 
20.9
 %
Commercial real estate lending
 
20,155

 
2,532

 
696.0
 %
 
2,192

 
16,268

 
3,252

 
519.8
 %
Total commercial
 
27,602

 
6,098

 
352.6
 %
 
27,567

 
22,890

 
12,650

 
118.2
 %
Home equity revolving lines of credit
 
5,157

 
7,150

 
(27.9
)%
 
6,725

 
6,739

 
6,986

 
(26.2
)%
Home equity loans 1st liens
 
1,688

 
953

 
77.1
 %
 
1,800

 
1,503

 
1,685

 
0.2
 %
Home equity loans junior liens
 
1,894

 
1,905

 
(0.6
)%
 
2,058

 
2,496

 
2,138

 
(11.4
)%
Home equity
 
8,739

 
10,008

 
(12.7
)%
 
10,583

 
10,738

 
10,809

 
(19.2
)%
Installment and credit cards
 
1,655

 
1,818

 
(9.0
)%
 
1,932

 
1,818

 
1,734

 
(4.6
)%
Residential mortgage
 
4,914

 
3,403

 
44.4
 %
 
3,046

 
3,231

 
7,070

 
(30.5
)%
Total consumer
 
15,308

 
15,229

 
0.5
 %
 
15,561

 
15,787

 
19,613

 
(21.9
)%
Total loans past due 30-89 days
 
$
42,910

 
$
21,327

 
101.2
 %
 
$
43,128

 
$
38,677

 
$
32,263

 
33.0
 %
Potential Problem Loans
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Commercial and industrial
 
$
125,643

 
$
138,403

 
(9.2
)%
 
$
108,522

 
$
133,416

 
$
187,251

 
(32.9
)%
Commercial real estate—owner occupied
 
41,997

 
43,114

 
(2.6
)%
 
48,695

 
49,008

 
57,757

 
(27.3
)%
Lease financing
 
1,385

 
2,009

 
(31.1
)%
 
2,709

 
3,787

 
2,280

 
(39.3
)%
Commercial and business lending
 
169,025

 
183,526

 
(7.9
)%
 
159,926

 
186,211

 
247,288

 
(31.6
)%
Commercial real estate—investor
 
23,543

 
26,026

 
(9.5
)%
 
24,043

 
28,474

 
31,903

 
(26.2
)%
Real estate construction
 
1,327

 
1,487

 
(10.8
)%
 
1,776

 
2,227

 
4,473

 
(70.3
)%
Commercial real estate lending
 
24,870

 
27,513

 
(9.6
)%
 
25,819

 
30,701

 
36,376

 
(31.6
)%
Total commercial
 
193,895

 
211,039

 
(8.1
)%
 
185,745

 
216,912

 
283,664

 
(31.6
)%
Home equity revolving lines of credit
 
202

 
247

 
(18.2
)%
 
204

 
224

 
277

 
(27.1
)%
Home equity loans junior liens
 
230

 
711

 
(67.7
)%
 
676

 
687

 
822

 
(72.0
)%
Home equity
 
432

 
958

 
(54.9
)%
 
880

 
911

 
1,099

 
(60.7
)%
Installment and credit cards
 
—

 
—

 
N/M

 
2

 
4

 
844

 
(100.0
)%
Residential mortgage
 
5,341

 
6,621

 
(19.3
)%
 
3,781

 
2,166

 
2,445

 
118.4
 %
Total consumer
 
5,773

 
7,579

 
(23.8
)%
 
4,663

 
3,081

 
4,388

 
31.6
 %
Total potential problem loans
 
$
199,668

 
$
218,618

 
(8.7
)%
 
$
190,408

 
$
219,993

 
$
288,052

 
(30.7
)%
N/M = Not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 6



Associated Banc-Corp
Net Interest Income Analysis—Taxable Equivalent Basis
Sequential Quarter
 
 
Three months ended June 30, 2015
 
Three months ended March 31, 2015
(in thousands)
 
Average
Balance
 
Interest
Income /Expense
 
Average
Yield /Rate
 
Average
Balance
 
Interest
Income /Expense
 
Average
Yield /Rate
Earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans: (1) (2) (3)
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and business lending
 
$
7,167,315

 
$
56,329

 
3.15
%
 
$
6,993,169

 
$
55,915

 
3.24
%
Commercial real estate lending
 
4,148,955

 
35,688

 
3.45

 
4,102,733

 
36,403

 
3.60

Total commercial
 
11,316,270

 
92,017

 
3.26

 
11,095,902

 
92,318

 
3.37

Residential mortgage
 
4,882,700

 
38,232

 
3.13

 
4,663,849

 
36,885

 
3.17

Retail
 
1,989,335

 
23,072

 
4.65

 
2,055,364

 
23,668

 
4.64

Total loans
 
18,188,305

 
153,321

 
3.38

 
17,815,115

 
152,871

 
3.46

Investment securities (1)
 
5,703,477

 
35,443

 
2.49

 
5,754,747

 
37,159

 
2.58

Other short-term investments
 
374,585

 
1,771

 
1.89

 
578,164

 
1,692

 
1.18

Investments and other
 
6,078,062

 
37,214

 
2.45

 
6,332,911

 
38,851

 
2.45

Total earning assets
 
24,266,367

 
$
190,535

 
3.15

 
24,148,026

 
$
191,722

 
3.20

Other assets, net
 
2,465,707

 
 
 
 
 
2,458,899

 
 
 
 
Total assets
 
$
26,732,074

 
 
 
 
 
$
26,606,925

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
 
$
1,352,616

 
$
259

 
0.08
%
 
$
1,277,469

 
$
238

 
0.08
%
Interest-bearing demand deposits
 
3,251,196

 
1,037

 
0.13

 
3,203,727

 
1,050

 
0.13

Money market deposits
 
9,101,589

 
4,088

 
0.18

 
8,653,260

 
3,785

 
0.18

Time deposits
 
1,630,242

 
2,757

 
0.68

 
1,594,183

 
2,546

 
0.65

Total interest-bearing deposits
 
15,335,643

 
8,141

 
0.21

 
14,728,639

 
7,619

 
0.21

Federal funds purchased and securities sold under agreements to repurchase
 
662,047

 
235

 
0.14

 
585,498

 
231

 
0.16

Other short-term funding
 
236,459

 
115

 
0.20

 
119,240

 
81

 
0.27

Long-term funding
 
3,080,954

 
10,642

 
1.38

 
3,735,602

 
10,872

 
1.17

Total short and long-term funding
 
3,979,460

 
10,992

 
1.11

 
4,440,340

 
11,184

 
1.01

Total interest-bearing liabilities
 
19,315,103

 
$
19,133

 
0.40

 
19,168,979

 
$
18,803

 
0.39

Noninterest-bearing demand deposits
 
4,290,567

 
 
 
 
 
4,326,557

 
 
 
 
Other liabilities
 
251,743

 
 
 
 
 
266,660

 
 
 
 
Stockholders’ equity
 
2,874,661

 
 
 
 
 
2,844,729

 
 
 
 
Total liabilities and stockholders’ equity
 
$
26,732,074

 
 
 
 
 
$
26,606,925

 
 
 
 
Net interest income and rate spread
 
 
 
$
171,402

 
2.75
%
 
 
 
$
172,919

 
2.81
%
Net interest margin
 
 
 
 
 
2.83
%
 
 
 
 
 
2.89
%
Taxable equivalent adjustment
 
 
 
$
4,914

 
 
 
 
 
$
5,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Income Analysis—Taxable Equivalent Basis
Comparable Quarter
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2015
 
Three months ended June 30, 2014
(in thousands)
 
Average
Balance
 
Interest
Income /Expense
 
Average
Yield /Rate
 
Average
Balance
 
Interest
Income /Expense
 
Average
Yield /Rate
Earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans: (1) (2) (3)
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and business lending
 
$
7,167,315

 
$
56,329

 
3.15
%
 
$
6,468,844

 
$
53,519

 
3.32
%
Commercial real estate lending
 
4,148,955

 
35,688

 
3.45

 
3,967,848

 
36,309

 
3.67

Total commercial
 
11,316,270

 
92,017

 
3.26

 
10,436,692

 
89,828

 
3.45

Residential mortgage
 
4,882,700

 
38,232

 
3.13

 
4,077,617

 
33,575

 
3.29

Retail
 
1,989,335

 
23,072

 
4.65

 
2,132,080

 
24,157

 
4.54

Total loans
 
18,188,305

 
153,321

 
3.38

 
16,646,389

 
147,560

 
3.55

Investment securities (1)
 
5,703,477

 
35,443

 
2.49

 
5,606,279

 
36,865

 
2.63

Other short-term investments
 
374,585

 
1,771

 
1.89

 
284,847

 
1,862

 
2.62

Investments and other
 
6,078,062

 
37,214

 
2.45

 
5,891,126

 
38,727

 
2.63

Total earning assets
 
24,266,367

 
$
190,535

 
3.15

 
22,537,515

 
$
186,287

 
3.31

Other assets, net
 
2,465,707

 
 
 
 
 
2,320,557

 
 
 
 
Total assets
 
$
26,732,074

 
 
 
 
 
$
24,858,072

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
 
$
1,352,616

 
$
259

 
0.08
%
 
$
1,267,297

 
$
242

 
0.08
%
Interest-bearing demand deposits
 
3,251,196

 
1,037

 
0.13

 
2,894,446

 
969

 
0.13

Money market deposits
 
9,101,589

 
4,088

 
0.18

 
7,340,244

 
2,928

 
0.16

Time deposits
 
1,630,242

 
2,757

 
0.68

 
1,597,535

 
2,056

 
0.52

Total interest-bearing deposits
 
15,335,643

 
8,141

 
0.21

 
13,099,522

 
6,195

 
0.19

Federal funds purchased and securities sold under agreements to repurchase
 
662,047

 
235

 
0.14

 
847,756

 
306

 
0.14

Other short-term funding
 
236,459

 
115

 
0.20

 
832,299

 
280

 
0.13

Long-term funding
 
3,080,954

 
10,642

 
1.38

 
2,931,957

 
6,146

 
0.84

Total short and long-term funding
 
3,979,460

 
10,992

 
1.11

 
4,612,012

 
6,732

 
0.58

Total interest-bearing liabilities
 
19,315,103

 
$
19,133

 
0.40

 
17,711,534

 
$
12,927

 
0.29

Noninterest-bearing demand deposits
 
4,290,567

 
 
 
 
 
4,073,310

 
 
 
 
Other liabilities
 
251,743

 
 
 
 
 
182,110

 
 
 
 
Stockholders’ equity
 
2,874,661

 
 
 
 
 
2,891,118

 
 
 
 
Total liabilities and stockholders’ equity
 
$
26,732,074

 
 
 
 
 
$
24,858,072

 
 
 
 
Net interest income and rate spread
 
 
 
$
171,402

 
2.75
%
 
 
 
$
173,360

 
3.02
%
Net interest margin
 
 
 
 
 
2.83
%
 
 
 
 
 
3.08
%
Taxable equivalent adjustment
 
 
 
$
4,914

 
 
 
 
 
$
4,657

 
 
(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, 2015
 
Six months ended June 30, 2014
(in thousands)
 
Average
Balance
 
Interest
Income /Expense
 
Average
Yield /Rate
 
Average
Balance
 
Interest
Income /Expense
 
Average
Yield /Rate
Earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans: (1) (2) (3)
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and business lending
 
$
7,080,723

 
$
112,244

 
3.19
%
 
$
6,300,948

 
$
105,199

 
3.37
%
Commercial real estate lending
 
4,125,972

 
72,091

 
3.52

 
3,937,772

 
71,900

 
3.68

Total commercial
 
11,206,695

 
184,335

 
3.32

 
10,238,720

 
177,099

 
3.49

Residential mortgage
 
4,773,879

 
75,117

 
3.15

 
4,002,592

 
66,239

 
3.31

Retail
 
2,022,167

 
46,740

 
4.64

 
2,165,522

 
48,570

 
4.51

Total loans
 
18,002,741

 
306,192

 
3.42

 
16,406,834

 
291,908

 
3.58

Investment securities (1)
 
5,728,970

 
72,602

 
2.53

 
5,528,604

 
73,788

 
2.67

Other short-term investments
 
475,812

 
3,463

 
1.46

 
281,353

 
3,311

 
2.36

Investments and other
 
6,204,782

 
76,065

 
2.45

 
5,809,957

 
77,099

 
2.65

Total earning assets
 
24,207,523

 
$
382,257

 
3.17

 
22,216,791

 
$
369,007

 
3.34

Other assets, net
 
2,462,322

 
 
 
 
 
2,320,633

 
 
 
 
Total assets
 
$
26,669,845

 
 
 
 
 
$
24,537,424

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
 
$
1,315,250

 
$
497

 
0.08
%
 
$
1,231,516

 
$
462

 
0.08
%
Interest-bearing demand deposits
 
3,227,593

 
2,087

 
0.13

 
2,845,618

 
1,792

 
0.13

Money market deposits
 
8,878,663

 
7,873

 
0.18

 
7,257,137

 
5,752

 
0.16

Time deposits
 
1,612,312

 
5,303

 
0.66

 
1,628,235

 
4,348

 
0.54

Total interest-bearing deposits
 
15,033,818

 
15,760

 
0.21

 
12,962,506

 
12,354

 
0.19

Federal funds purchased and securities sold under agreements to repurchase
 
623,984

 
466

 
0.15

 
826,589

 
611

 
0.15

Other short-term funding
 
178,173

 
196

 
0.22

 
581,799

 
396

 
0.14

Long-term funding
 
3,406,469

 
21,514

 
1.26

 
2,968,038

 
12,657

 
0.85

Total short and long-term funding
 
4,208,626

 
22,176

 
1.05

 
4,376,426

 
13,664

 
0.63

Total interest-bearing liabilities
 
19,242,444

 
$
37,936

 
0.40

 
17,338,932

 
$
26,018

 
0.30

Noninterest-bearing demand deposits
 
4,308,463

 
 
 
 
 
4,119,551

 
 
 
 
Other liabilities
 
259,160

 
 
 
 
 
188,992

 
 
 
 
Stockholders’ equity
 
2,859,778

 
 
 
 
 
2,889,949

 
 
 
 
Total liabilities and stockholders’ equity
 
$
26,669,845

 
 
 
 
 
$
24,537,424

 
 
 
 
Net interest income and rate spread
 
 
 
$
344,321

 
2.77
%
 
 
 
$
342,989

 
3.04
%
Net interest margin
 
 
 
 
 
2.86
%
 
 
 
 
 
3.10
%
Taxable equivalent adjustment
 
 
 
$
10,020

 
 
 
 
 
$
9,313

 
 
(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
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period End Loan Composition
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Commercial and industrial
 
$
6,208,192

 
$
6,140,420

 
1.1
 %
 
$
5,905,902

 
$
5,603,899

 
$
5,616,205

 
10.5
 %
Commercial real estate—owner occupied
 
978,183

 
1,003,885

 
(2.6
)%
 
1,007,937

 
1,014,335

 
1,070,463

 
(8.6
)%
Lease financing
 
46,900

 
49,496

 
(5.2
)%
 
51,529

 
52,600

 
51,873

 
(9.6
)%
Commercial and business lending
 
7,233,275

 
7,193,801

 
0.5
 %
 
6,965,368

 
6,670,834

 
6,738,541

 
7.3
 %
Commercial real estate—investor
 
3,126,440

 
3,086,980

 
1.3
 %
 
3,056,485

 
3,043,361

 
2,990,732

 
4.5
 %
Real estate construction
 
1,092,308

 
1,019,571

 
7.1
 %
 
1,008,956

 
982,426

 
1,000,421

 
9.2
 %
Commercial real estate lending
 
4,218,748

 
4,106,551

 
2.7
 %
 
4,065,441

 
4,025,787

 
3,991,153

 
5.7
 %
Total commercial
 
11,452,023

 
11,300,352

 
1.3
 %
 
11,030,809

 
10,696,621

 
10,729,694

 
6.7
 %
Home equity revolving lines of credit
 
880,628

 
879,827

 
0.1
 %
 
887,779

 
880,435

 
866,042

 
1.7
 %
Home equity loans 1st liens
 
508,491

 
549,667

 
(7.5
)%
 
584,131

 
619,774

 
659,598

 
(22.9
)%
Home equity loans junior liens
 
141,344

 
154,120

 
(8.3
)%
 
164,148

 
176,316

 
187,732

 
(24.7
)%
Home equity
 
1,530,463

 
1,583,614

 
(3.4
)%
 
1,636,058

 
1,676,525

 
1,713,372

 
(10.7
)%
Installment and credit cards
 
430,823

 
436,492

 
(1.3
)%
 
454,219

 
459,682

 
469,203

 
(8.2
)%
Residential mortgage
 
4,889,943

 
4,658,574

 
5.0
 %
 
4,472,760

 
4,326,262

 
4,132,783

 
18.3
 %
Total consumer
 
6,851,229

 
6,678,680

 
2.6
 %
 
6,563,037

 
6,462,469

 
6,315,358

 
8.5
 %
Total loans
 
$
18,303,252

 
$
17,979,032

 
1.8
 %
 
$
17,593,846

 
$
17,159,090

 
$
17,045,052

 
7.4
 %
Period End Deposit and Customer Funding Composition
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Noninterest-bearing demand
 
$
4,332,171

 
$
4,570,872

 
(5.2
)%
 
$
4,505,272

 
$
4,302,454

 
$
4,211,057

 
2.9
 %
Savings
 
1,359,478

 
1,337,643

 
1.6
 %
 
1,235,277

 
1,256,567

 
1,275,493

 
6.6
 %
Interest-bearing demand
 
3,576,311

 
3,525,870

 
1.4
 %
 
3,126,854

 
3,637,411

 
2,918,900

 
22.5
 %
Money market
 
8,374,186

 
8,781,206

 
(4.6
)%
 
8,324,646

 
7,491,460

 
7,348,650

 
14.0
 %
Brokered CDs
 
39,760

 
40,699

 
(2.3
)%
 
42,556

 
9,242

 
44,809

 
(11.3
)%
Other time
 
1,587,657

 
1,595,302

 
(0.5
)%
 
1,528,899

 
1,504,124

 
1,517,350

 
4.6
 %
Total deposits
 
19,269,563

 
19,851,592

 
(2.9
)%
 
18,763,504

 
18,201,258

 
17,316,259

 
11.3
 %
Customer repo sweeps
 
433,044

 
528,572

 
(18.1
)%
 
384,221

 
493,451

 
489,886

 
(11.6
)%
Total deposits and customer funding
 
$
19,702,607

 
$
20,380,164

 
(3.3
)%
 
$
19,147,725

 
$
18,694,709

 
$
17,806,145

 
10.7
 %
Network transaction deposits included above in interest-bearing demand & money market
 
$
2,920,939

 
$
2,900,325

 
0.7
 %
 
$
2,852,943

 
$
2,207,055

 
$
2,238,923

 
30.5
 %
Brokered CDs
 
39,760

 
40,699

 
(2.3
)%
 
42,556

 
9,242

 
44,809

 
(11.3
)%
Total network and brokered funding
 
2,960,699

 
2,941,024

 
0.7
 %
 
2,895,499

 
2,216,297

 
2,283,732

 
29.6
 %
Net customer deposits and funding (1)
 
$
16,741,908

 
$
17,439,140

 
(4.0
)%
 
$
16,252,226

 
$
16,478,412

 
$
15,522,413

 
7.9
 %
(1)    Total deposits and customer funding excluding total network and brokered funding.
 
Quarter Average Loan Composition
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Commercial and industrial
 
$
6,122,864

 
$
5,944,152

 
3.0
 %
 
$
5,665,396

 
$
5,558,135

 
$
5,335,488

 
14.8
 %
Commercial real estate—owner occupied
 
995,981

 
998,293

 
(0.2
)%
 
1,003,179

 
1,043,001

 
1,081,552

 
(7.9
)%
Lease financing
 
48,470

 
50,724

 
(4.4
)%
 
52,318

 
51,091

 
51,804

 
(6.4
)%
Commercial and business lending
 
7,167,315

 
6,993,169

 
2.5
 %
 
6,720,893

 
6,652,227

 
6,468,844

 
10.8
 %
Commercial real estate—investor
 
3,110,637

 
3,106,965

 
0.1
 %
 
3,062,427

 
3,013,210

 
3,014,827

 
3.2
 %
Real estate construction
 
1,038,318

 
995,768

 
4.3
 %
 
1,003,716

 
1,006,076

 
953,021

 
9.0
 %
Commercial real estate lending
 
4,148,955

 
4,102,733

 
1.1
 %
 
4,066,143

 
4,019,286

 
3,967,848

 
4.6
 %
Total commercial
 
11,316,270

 
11,095,902

 
2.0
 %
 
10,787,036

 
10,671,513

 
10,436,692

 
8.4
 %
Home equity revolving lines of credit
 
881,036

 
882,869

 
(0.2
)%
 
883,580

 
875,388

 
866,952

 
1.6
 %
Home equity loans 1st liens
 
528,493

 
567,849

 
(6.9
)%
 
601,719

 
638,592

 
681,607

 
(22.5
)%
Home equity loans junior liens
 
147,391

 
159,378

 
(7.5
)%
 
169,845

 
181,880

 
193,727

 
(23.9
)%
Home equity
 
1,556,920

 
1,610,096

 
(3.3
)%
 
1,655,144

 
1,695,860

 
1,742,286

 
(10.6
)%
Installment and credit cards
 
432,415

 
445,268

 
(2.9
)%
 
455,000

 
464,467

 
389,794

 
10.9
 %
Residential mortgage
 
4,882,700

 
4,663,849

 
4.7
 %
 
4,490,075

 
4,309,121

 
4,077,617

 
19.7
 %
Total consumer
 
6,872,035

 
6,719,213

 
2.3
 %
 
6,600,219

 
6,469,448

 
6,209,697

 
10.7
 %
Total loans
 
$
18,188,305

 
$
17,815,115

 
2.1
 %
 
$
17,387,255

 
$
17,140,961

 
$
16,646,389

 
9.3
 %
Quarter Average Deposit Composition
 
Jun 30, 2015
 
Mar 31, 2015
 
Jun15 vs Mar15 % Change
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Jun15 vs Jun14 % Change
Noninterest-bearing demand
 
$
4,290,567

 
$
4,326,557

 
(0.8
)%
 
$
4,367,031

 
$
4,239,654

 
$
4,073,310

 
5.3
 %
Savings
 
1,352,616

 
1,277,469

 
5.9
 %
 
1,264,195

 
1,269,994

 
1,267,297

 
6.7
 %
Interest-bearing demand
 
3,251,196

 
3,203,727

 
1.5
 %
 
3,142,537

 
3,096,712

 
2,894,446

 
12.3
 %
Money market
 
9,101,589

 
8,653,260

 
5.2
 %
 
8,209,091

 
7,721,167

 
7,340,244

 
24.0
 %
Time deposits
 
1,630,242

 
1,594,183

 
2.3
 %
 
1,549,565

 
1,545,851

 
1,597,535

 
2.0
 %
Total deposits
 
$
19,626,210

 
$
19,055,196

 
3.0
 %
 
$
18,532,419

 
$
17,873,378

 
$
17,172,832

 
14.3
 %

Page 9