ASB 8-K
Associated Banc-Corp (ASB)
8-K
2022-01-20
For: 2022-01-20
View Original
Added on
April 06, 2026
| UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 | |||||
| FORM | |||||
| CURRENT REPORT | |||||
| Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 | |||||
| Date of Report (Date of earliest event reported) | |||||
| | ||
| (Exact name of registrant as specified in its chapter) | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip code) | ||||||||||
| Registrant’s telephone number, including area code | ||||||||
| (Former name or former address, if changed since last report) | |||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities Registered Pursuant to Section 12(b) of the act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||
| Item 2.02 Results of Operations and Financial Condition. | ||
| On January 20, 2022, Associated Banc-Corp announced its earnings for the quarter ended December 31, 2021. A copy of the registrant’s press release containing this information and the slide presentation discussed on the conference call for investors and analysts on January 20, 2022, are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report on Form 8-K and are incorporated herein by reference. | ||
| Item 9.01 Financial Statements and Exhibits. | ||
(d) Exhibits. | ||
The following exhibits are furnished as part of this Report on Form 8-K: | ||
| SIGNATURES | ||||||||
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | ||||||||
| Associated Banc-Corp | ||||||||
| (Registrant) | ||||||||
| Date: January 20, 2022 | By: /s/ Christopher J. Del Moral-Niles | |||||||
| Christopher J. Del Moral-Niles | ||||||||
| Chief Financial Officer | ||||||||
 | NEWS RELEASE 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 | ||||
Associated Banc-Corp Reports Fourth Quarter 2021 Earnings of $0.49 Per Common Share and $2.18 Per Common Share for the Full Year 2021.
GREEN BAY, Wis. -- January 20, 2022 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $74 million, or $0.49 per common share, for the quarter ended December 31, 2021. These amounts compare to earnings of $62 million, or $0.40 per common share for the quarter ended December 31, 2020 and earnings of $85 million, or $0.56 per common share for the quarter ended September 30, 2021. For the year ended December 31, 2021, the Company reported earnings of $334 million, or $2.18 per common share. These amounts compare to earnings of $288 million, or $1.86 per common share, for the year ended December 31, 2020.
“This quarter was marked by a resurgence in lending growth as commercial outstandings, line utilization, and our new initiatives all kicked into gear,” said President and CEO Andy Harmening. “We were pleased to grow in most of our key loan and deposit verticals and took advantage of the positive economic backdrop to largely exit our remaining Oil & Gas exposure at minimal cost. We see 2022 as primed for a rebound in general commercial lending,” he continued. "Alongside the balance sheet growth, we also enjoyed growing revenues, expanding margins, and further positive credit trends."
2021 SUMMARY (all comparisons to 2020)
•Full-year average loans of $24.1 billion were down 2%, or $480 million
•Full-year average deposits of $27.7 billion were up 6%, or $1.7 billion
•Net interest income of $726 million decreased 5%, or $37 million
◦Average cost of total interest-bearing deposits decreased 26 basis points to 0.09%
•Provision for credit losses was negative $88 million, compared to a provision of $174 million
•Noninterest income of $332 million decreased 35%, or $182 million
◦Fee-based revenues1 increased 8%, or $15 million
•Noninterest expense of $710 million decreased 9%, or $66 million
•Net income available to common equity was up $45 million, to $334 million
•Earnings per common share increased $0.32, to $2.18
•Tangible book value per share was $17.87, up 7% from $16.67
1This is a non-GAAP financial measure. Please refer to page 10 of the attached tables for a reconciliation of fee-based revenues to noninterest income.
The Company also announced today that Executive Vice President, CFO Christopher Del Moral-Niles will retire from Associated later this year. To ensure a seamless transition, Mr. Del Moral-Niles will continue in his role until a successor is in place. The Company has retained Diversified Search Group to assist in the search for a successor. Additional details can be found in the press release available at http://investor.associatedbank.com.
Loans
Fourth quarter 2021 period-end total loans of $24.2 billion were up approximately 3%, or $603 million from the prior quarter and were down 1%, or $227 million from the same period last year. Excluding PPP, period-end total loans of $24.2 billion were up over 3%, or $719 million from the prior quarter and were up 2%, or $475 million from the same period last year. With respect to fourth quarter 2021 period-end balances by loan category:
•Commercial and business lending (excluding PPP) increased $551 million from the prior quarter and increased $755 million from the same period last year to $9.4 billion.
•Commercial real estate lending increased $62 million from the prior quarter and increased $11 million from the same period last year to $6.2 billion.
•Consumer lending was $8.6 billion, up $107 million from the prior quarter and down $291 million from the same period last year.
•PPP loans decreased $116 million from the prior quarter and decreased $702 million from the same period last year to $66 million.
Fourth quarter 2021 average total loans of $23.8 billion were down $89 million from the prior quarter and were down 4%, or $887 million from the same period last year. Excluding PPP, average total loans of $23.7 billion were up $72 million from the prior quarter and were down $72 million from the same period last year. With respect to fourth quarter 2021 average balances by loan category:
•Commercial and business lending (excluding PPP) increased $133 million from the prior quarter and increased $328 million compared to the same period last year to $8.8 billion.
•Commercial real estate lending decreased $26 million from the prior quarter and decreased $24 million from the same period last year to $6.1 billion.
•Consumer lending was $8.7 billion, down $35 million from the prior quarter and down $376 million from the same period last year.
•PPP loans decreased $160 million from the prior quarter and decreased $815 million from the same period last year to $115 million.
Full-year 2021 average loans of $24.1 billion were down 2%, or $480 million from 2020. With respect to full-year 2021 average balances by loan category compared to 2020:
•Commercial and business lending (excluding PPP) decreased $77 million to $8.6 billion.
•Commercial real estate lending increased $345 million to $6.2 billion.
•Consumer lending decreased $519 million to $8.8 billion.
•PPP loans decreased $229 million to $472 million.
In 2022, we expect Auto Finance loan growth of more than $1.2 billion and Total Commercial loan growth of $750 million to $1 billion.
Deposits
Fourth quarter 2021 period-end deposits of $28.5 billion were up 2%, or $615 million compared to the prior quarter and were up 7%, or $2.0 billion from the same period last year. Low-cost core deposits (interest-bearing demand, noninterest-bearing demand and savings) made up 68% of deposit balances as of December 31, 2021. With respect to fourth quarter 2021 period-end balances by deposit category:
•Noninterest-bearing demand deposits increased $334 million from the prior quarter and increased $842 million from the same period last year to $8.5 billion.
•Savings increased $132 million from the prior quarter and increased $760 million from the same period last year to $4.4 billion.
•Interest-bearing demand deposits increased $612 million from the prior quarter and increased $929 million from the same period last year to $7.0 billion.
•Money market deposits decreased $399 million from the prior quarter and decreased $138 million from the same period last year to $7.2 billion.
•Time deposits decreased $64 million from the prior quarter and decreased $410 million from the same period last year to $1.3 billion.
•Network transaction deposits (included in money market and interest-bearing deposits) decreased $162 million from the prior quarter and decreased $430 million from the same period last year to $767 million.
Fourth quarter 2021 average deposits of $28.4 billion were up 1%, or $328 million compared to the prior quarter and were up 6%, or $1.7 billion from the same period last year. With respect to fourth quarter 2021 average balances by deposit category:
•Noninterest-bearing demand deposits increased $275 million from the prior quarter and increased $740 million from the same period last year to $8.4 billion.
•Savings increased $119 million from the prior quarter and increased $739 million from the same period last year to $4.4 billion.
•Interest-bearing demand deposits increased $162 million from the prior quarter and increased $766 million from the same period last year to $6.5 billion.
•Money market deposits decreased $118 million from the prior quarter and increased $353 million from the same period last year to $6.9 billion.
•Time deposits decreased $53 million from the prior quarter and decreased $507 million from the same period last year to $1.4 billion.
•Network transaction deposits decreased $56 million from the prior quarter and decreased $427 million from the same period last year to $838 million.
Full-year 2021 average deposits of $27.7 billion were up 6%, or $1.7 billion from 2020. With respect to full-year 2021 average balances by deposit category as compared to 2020:
•Noninterest-bearing demand deposits increased $1.2 billion to $8.1 billion.
•Savings increased $832 million to $4.1 billion.
•Interest-bearing demand deposits increased $531 million to $6.1 billion.
•Money market deposits increased $431 million to $6.9 billion.
•Network transaction deposits decreased $513 million to $930 million.
•Time deposits decreased $786 million to $1.5 billion.
Net Interest Income and Net Interest Margin
Full-year 2021 net interest income of $726 million was down 5%, or $37 million from 2020. Net interest margin of
2.39% was down 14 basis points from the prior year. The decreases in net interest income and margin were driven
by continued low interest rates and significant increases in liquidity during 2021.
•The average yield on total earning assets decreased 39 basis points from the prior year to 2.62%.
•The average cost of interest-bearing liabilities decreased 32 basis points from the prior year to 0.33%.
•The net free funds benefit compressed 7 basis points from the prior year to 0.10%.
Fourth quarter 2021 net interest income of $187 million was up 2%, or $3 million from the prior quarter and the net interest margin increased 2 basis points from the prior quarter to 2.40%. Compared to the same period last year, net interest income decreased 1%, or $1 million, and the net interest margin decreased 9 basis points.
•The average yield on total earning assets for the fourth quarter of 2021 was flat to the prior quarter and decreased 21 basis points from the same period last year to 2.59%.
•The average cost of total interest-bearing liabilities for the fourth quarter of 2021 decreased 3 basis points from the prior quarter and decreased 16 basis points from the same period last year to 0.27%.
•The net free funds benefit for the fourth quarter of 2021 decreased 1 basis point from the prior quarter and decreased 4 basis points compared to the same period last year.
We expect total net interest income to exceed $800 million in 2022.
Noninterest Income
Full-year 2021 noninterest income of $332 million decreased $182 million from the prior year. The decrease was largely driven by $9 million in investment securities gains in 2020 as well as several non-routine items in 2020, including $163 million in asset gains tied to the sale of Associated Benefits and Risk Consulting (ABRC) and a $7 million gain on branch sales. The sale of ABRC in 2020 also drove a $45 million reduction in insurance revenues year-over-year. Excluding 2020 ABRC revenues and related gains, all other noninterest income increased 9%, or $27 million year-over-year. With respect to 2021 noninterest income line items:
•Service charges and deposit account fees increased $8 million from the prior year primarily driven by increased customer activity in 2021 and fee waivers implemented during 2020 in response to the pandemic.
•Net mortgage banking income increased $5 million from the prior year, driven by a recovery of $16 million in 2021 as opposed to an impairment of $18 million in 2020, partially offset by lower gains on mortgages sold of $29 million.
•Wealth management fees increased $5 million from the prior year, driven by higher market valuations.
•Card-based fees increased $4 million from the prior year, driven by increased customer activity.
Fourth quarter 2021 total noninterest income of $82 million decreased $1 million from the prior quarter and decreased $4 million from the same period last year. With respect to fourth quarter 2021 noninterest income line items:
•Capital markets fees increased $3 million from the prior quarter and increased $4 million from the same period last year.
•Mortgage Banking, net was $8 million for the fourth quarter, down $3 million from the prior quarter and down $6 million from the same period last year, driven by slowing refinance activity.
We expect total noninterest income to exceed $300 million in 2022.
Noninterest Expense
Full-year 2021 noninterest expense of $710 million decreased 9%, or $66 million from the prior year. Included in 2020 noninterest expense figures is the loss on prepayments of FHLB advances of $45 million. With respect to full year 2021 noninterest expense line items:
•Personnel costs decreased $5 million from the prior year, largely driven by reduced headcount, partially offset by increased incentive plan expenses.
•Loan and foreclosure costs decreased $4 million from the prior year, driven by lower costs associated with resolving loans.
•Business development and advertising increased $3 million from the prior year as business activity resumed in 2021.
Fourth quarter 2021 total noninterest expense of $182 million increased $4 million from the prior quarter and increased $9 million compared to the same period last year. With respect to fourth quarter 2021 noninterest expense line items:
•Personnel expense was flat to the prior quarter and increased $10 million from the same period last year, driven by higher incentive compensation, added costs tied to our strategic initiatives, and the implementation of a minimum wage increase.
•Occupancy expense increased $1 million from both the prior quarter and the same period last year.
•Other expense increased $3 million from the prior quarter and increased $2 million from the same period last year.
We expect 2022 noninterest expense to be approximately $725 million to $740 million.
Taxes
The fourth quarter 2021 tax expense was $15 million compared to $23 million of tax expense in the prior quarter and $17 million of tax expense in the same period last year. The effective tax rate for fourth quarter 2021 was 16.5% compared to an effective tax rate of 20.6% in the prior quarter and an effective tax rate of 20.1% in the same period last year. The lower effective tax rate in fourth quarter 2021 was due in part to an increase in tax-exempt interest and benefits from bank and corporate owned life insurance compared to the prior quarter and the same period last year.
We expect the annual 2022 tax rate to be between 19% to 21%, assuming no change in the corporate tax rate.
Credit
Full-year 2021 provision for credit losses was negative $88 million, compared to a provision of $174 million in the prior year.
The fourth quarter 2021 provision for credit losses was negative $6 million, compared to a negative provision of $24 million in the prior quarter and provision of $17 million in the same period last year. With respect to fourth quarter 2021 credit quality:
•Nonaccrual loans of $130 million were down $5 million, or 3%, from the prior quarter and down $80 million, or 38% from the same period last year. The nonaccrual loans to total loans ratio was 0.54% in the fourth quarter, down from 0.57% in the prior quarter and down from 0.86% in the same period last year.
•Net charge offs of $6 million were down $1 million, or 17%, from the prior quarter and down $21 million, or 76%, from the same period last year.
•The allowance for credit losses on loans (ACLL) of $320 million was down $12 million from the prior quarter and down $112 million compared to the same period last year. The ACLL to total loans ratio was 1.32% in the fourth quarter, down from 1.41% in the prior quarter and down from 1.76% in the same period last year.
In 2022, 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 10.3% at December 31, 2021. 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 2021 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 20, 2022. 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 2021 earnings call. The fourth quarter 2021 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 $35 billion and is Wisconsin's largest bank holding company. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from more than 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,” "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, 2021 | September 30, 2021 | Seql Qtr $ Change | June 30, 2021 | March 31, 2021 | December 31, 2020 | Comp Qtr $ Change | ||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and due from banks | $ | 343,831 | $ | 378,927 | $ | (35,096) | $ | 406,994 | $ | 356,285 | $ | 416,154 | $ | (72,323) | |||||||||
| Interest-bearing deposits in other financial institutions | 681,684 | 1,281,916 | (600,232) | 1,340,385 | 1,590,494 | 298,759 | 382,925 | ||||||||||||||||
| Federal funds sold and securities purchased under agreements to resell | — | 25,000 | (25,000) | 25,000 | — | 1,135 | (1,135) | ||||||||||||||||
| Investment securities available for sale, at fair value | 4,332,015 | 3,893,379 | 438,636 | 3,323,346 | 3,356,949 | 3,085,441 | 1,246,574 | ||||||||||||||||
| Investment securities held to maturity, net, at amortized cost | 2,238,947 | 1,929,735 | 309,212 | 1,799,834 | 1,857,087 | 1,878,938 | 360,009 | ||||||||||||||||
| Equity securities | 18,352 | 17,939 | 413 | 17,144 | 15,673 | 15,106 | 3,246 | ||||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 168,281 | 168,281 | — | 168,281 | 168,281 | 168,280 | 1 | ||||||||||||||||
| Residential loans held for sale | 136,638 | 158,202 | (21,564) | 160,547 | 153,151 | 129,158 | 7,480 | ||||||||||||||||
| Loans | 24,224,949 | 23,621,673 | 603,276 | 23,947,536 | 24,162,328 | 24,451,724 | (226,775) | ||||||||||||||||
| Allowance for loan losses | (280,015) | (290,997) | 10,982 | (318,811) | (352,938) | (383,702) | 103,687 | ||||||||||||||||
| Loans, net | 23,944,934 | 23,330,676 | 614,258 | 23,628,725 | 23,809,389 | 24,068,022 | (123,088) | ||||||||||||||||
| Tax credit and other investments | 293,733 | 301,490 | (7,757) | 294,220 | 303,701 | 297,232 | (3,499) | ||||||||||||||||
| Premises and equipment, net | 385,173 | 383,131 | 2,042 | 398,050 | 398,671 | 418,914 | (33,741) | ||||||||||||||||
| Bank and corporate owned life insurance | 680,021 | 683,610 | (3,589) | 682,709 | 680,831 | 679,647 | 374 | ||||||||||||||||
| Goodwill | 1,104,992 | 1,104,992 | — | 1,104,992 | 1,104,992 | 1,109,300 | (4,308) | ||||||||||||||||
| Other intangible assets, net | 58,093 | 60,296 | (2,203) | 62,498 | 64,701 | 68,254 | (10,161) | ||||||||||||||||
| Mortgage servicing rights, net | 54,862 | 50,329 | 4,533 | 48,335 | 49,500 | 41,961 | 12,901 | ||||||||||||||||
| Interest receivable | 80,528 | 79,011 | 1,517 | 81,797 | 86,466 | 90,263 | (9,735) | ||||||||||||||||
| Other assets | 582,168 | 592,753 | (10,585) | 609,766 | 579,084 | 653,219 | (71,051) | ||||||||||||||||
| Total assets | $ | 35,104,253 | $ | 34,439,666 | $ | 664,587 | $ | 34,152,625 | $ | 34,575,255 | $ | 33,419,783 | $ | 1,684,470 | |||||||||
| Liabilities and stockholders’ equity | |||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 8,504,077 | $ | 8,170,105 | $ | 333,972 | $ | 7,999,143 | $ | 8,496,194 | $ | 7,661,728 | $ | 842,349 | |||||||||
| Interest-bearing deposits | 19,962,353 | 19,681,161 | 281,192 | 19,265,157 | 19,180,972 | 18,820,753 | 1,141,600 | ||||||||||||||||
| Total deposits | 28,466,430 | 27,851,266 | 615,164 | 27,264,299 | 27,677,166 | 26,482,481 | 1,983,949 | ||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 319,532 | 267,943 | 51,589 | 170,419 | 138,507 | 192,971 | 126,561 | ||||||||||||||||
| Commercial paper | 34,730 | 54,553 | (19,823) | 55,785 | 51,171 | 59,346 | (24,616) | ||||||||||||||||
| FHLB advances | 1,621,047 | 1,620,880 | 167 | 1,619,826 | 1,629,966 | 1,632,723 | (11,676) | ||||||||||||||||
| Other long-term funding | 249,324 | 249,160 | 164 | 549,024 | 549,729 | 549,465 | (300,141) | ||||||||||||||||
| Allowance for unfunded commitments | 39,776 | 41,276 | (1,500) | 45,276 | 50,776 | 47,776 | (8,000) | ||||||||||||||||
| Accrued expenses and other liabilities | 348,560 | 359,626 | (11,066) | 337,942 | 350,160 | 364,088 | (15,528) | ||||||||||||||||
| Total liabilities | 31,079,399 | 30,444,705 | 634,694 | 30,042,573 | 30,447,474 | 29,328,850 | 1,750,549 | ||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Preferred equity | 193,195 | 193,195 | — | 290,200 | 353,512 | 353,512 | (160,317) | ||||||||||||||||
| Common equity | 3,831,658 | 3,801,766 | 29,892 | 3,819,852 | 3,774,268 | 3,737,421 | 94,237 | ||||||||||||||||
| Total stockholders’ equity | 4,024,853 | 3,994,961 | 29,892 | 4,110,052 | 4,127,780 | 4,090,933 | (66,080) | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 35,104,253 | $ | 34,439,666 | $ | 664,587 | $ | 34,152,625 | $ | 34,575,255 | $ | 33,419,783 | $ | 1,684,470 | |||||||||
Numbers may not sum due to rounding.
1
| Associated Banc-Corp Consolidated Statements of Income (Unaudited) | Comp Qtr | YTD | YTD | Comp YTD | ||||||||||||||||||||||
| ($ in thousands, except per share data) | 4Q21 | 4Q20 | $ Change | % Change | Dec 2021 | Dec 2020 | $ Change | % Change | ||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Interest and fees on loans | $ | 170,809 | $ | 185,934 | $ | (15,125) | (8) | % | $ | 693,729 | $ | 785,241 | $ | (91,512) | (12) | % | ||||||||||
| Interest and dividends on investment securities | ||||||||||||||||||||||||||
| Taxable | 13,317 | 9,746 | 3,571 | 37 | % | 37,916 | 59,806 | (21,890) | (37) | % | ||||||||||||||||
| Tax-exempt | 15,569 | 14,296 | 1,273 | 9 | % | 58,710 | 58,320 | 390 | 1 | % | ||||||||||||||||
| Other interest | 2,031 | 1,699 | 332 | 20 | % | 7,833 | 9,473 | (1,640) | (17) | % | ||||||||||||||||
| Total interest income | 201,726 | 211,675 | (9,949) | (5) | % | 798,189 | 912,840 | (114,651) | (13) | % | ||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Interest on deposits | 3,677 | 7,762 | (4,085) | (53) | % | 18,622 | 67,639 | (49,017) | (72) | % | ||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | 40 | 32 | 8 | 25 | % | 143 | 485 | (342) | (71) | % | ||||||||||||||||
| Interest on other short-term funding | 2 | 5 | (3) | (60) | % | 22 | 51 | (29) | (57) | % | ||||||||||||||||
| Interest on PPPLF | — | 410 | (410) | (100) | % | — | 1,984 | (1,984) | (100) | % | ||||||||||||||||
| Interest on FHLB Advances | 8,514 | 9,888 | (1,374) | (14) | % | 36,493 | 57,359 | (20,866) | (36) | % | ||||||||||||||||
| Interest on long-term funding | 2,730 | 5,585 | (2,855) | (51) | % | 17,053 | 22,365 | (5,312) | (24) | % | ||||||||||||||||
| Total interest expense | 14,963 | 23,682 | (8,719) | (37) | % | 72,334 | 149,883 | (77,549) | (52) | % | ||||||||||||||||
| Net interest income | 186,763 | 187,993 | (1,230) | (1) | % | 725,855 | 762,957 | (37,102) | (5) | % | ||||||||||||||||
| Provision for credit losses | (5,993) | 16,997 | (22,990) | N/M | (88,011) | 174,006 | (262,017) | N/M | ||||||||||||||||||
| Net interest income after provision for credit losses | 192,756 | 170,996 | 21,760 | 13 | % | 813,866 | 588,950 | 224,916 | 38 | % | ||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||
| Wealth management fees | 22,625 | 22,073 | 552 | 3 | % | 89,854 | 84,957 | 4,897 | 6 | % | ||||||||||||||||
| Service charges and deposit account fees | 17,039 | 15,318 | 1,721 | 11 | % | 64,406 | 56,307 | 8,099 | 14 | % | ||||||||||||||||
| Card-based fees | 11,176 | 9,848 | 1,328 | 13 | % | 43,014 | 38,534 | 4,480 | 12 | % | ||||||||||||||||
| Other fee-based revenue | 4,316 | 4,998 | (682) | (14) | % | 17,086 | 19,238 | (2,152) | (11) | % | ||||||||||||||||
Capital markets, net | 9,674 | 5,898 | 3,776 | 64 | % | 30,602 | 27,966 | 2,636 | 9 | % | ||||||||||||||||
| Mortgage banking, net | 8,041 | 14,537 | (6,496) | (45) | % | 50,751 | 45,580 | 5,171 | 11 | % | ||||||||||||||||
| Bank and corporate owned life insurance | 4,704 | 3,978 | 726 | 18 | % | 13,254 | 13,771 | (517) | (4) | % | ||||||||||||||||
| Insurance commissions and fees | 86 | 92 | (6) | (7) | % | 336 | 45,245 | (44,909) | (99) | % | ||||||||||||||||
Asset gains (losses), net(a) | 985 | (1,356) | 2,341 | N/M | 11,009 | 155,589 | (144,580) | (93) | % | |||||||||||||||||
| Investment securities gains (losses), net | — | — | — | N/M | (16) | 9,222 | (9,238) | N/M | ||||||||||||||||||
Gains on sale of branches, net(b) | — | 7,449 | (7,449) | (100) | % | 1,038 | 7,449 | (6,411) | (86) | % | ||||||||||||||||
Other | 2,855 | 2,879 | (24) | (1) | % | 11,031 | 10,200 | 831 | 8 | % | ||||||||||||||||
| Total noninterest income | 81,502 | 85,714 | (4,212) | (5) | % | 332,364 | 514,056 | (181,692) | (35) | % | ||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||
| Personnel | 107,787 | 98,033 | 9,754 | 10 | % | 426,687 | 432,151 | (5,464) | (1) | % | ||||||||||||||||
| Technology | 20,787 | 19,574 | 1,213 | 6 | % | 81,689 | 81,214 | 475 | 1 | % | ||||||||||||||||
| Occupancy | 16,863 | 15,678 | 1,185 | 8 | % | 63,513 | 64,064 | (551) | (1) | % | ||||||||||||||||
| Business development and advertising | 5,627 | 5,421 | 206 | 4 | % | 21,149 | 18,428 | 2,721 | 15 | % | ||||||||||||||||
| Equipment | 4,905 | 5,555 | (650) | (12) | % | 21,104 | 21,705 | (601) | (3) | % | ||||||||||||||||
| Legal and professional | 4,428 | 5,737 | (1,309) | (23) | % | 21,923 | 21,546 | 377 | 2 | % | ||||||||||||||||
| Loan and foreclosure costs | 1,636 | 3,758 | (2,122) | (56) | % | 8,143 | 12,600 | (4,457) | (35) | % | ||||||||||||||||
| FDIC assessment | 4,800 | 5,700 | (900) | (16) | % | 18,150 | 20,350 | (2,200) | (11) | % | ||||||||||||||||
| Other intangible amortization | 2,203 | 2,253 | (50) | (2) | % | 8,844 | 10,192 | (1,348) | (13) | % | ||||||||||||||||
| Loss on prepayments of FHLB advances | — | — | — | N/M | — | 44,650 | (44,650) | (100) | % | |||||||||||||||||
| Other | 13,173 | 11,141 | 2,032 | 18 | % | 38,721 | 49,135 | (10,414) | (21) | % | ||||||||||||||||
| Total noninterest expense | 182,210 | 172,850 | 9,360 | 5 | % | 709,924 | 776,034 | (66,110) | (9) | % | ||||||||||||||||
| Income before income taxes | 92,048 | 83,860 | 8,188 | 10 | % | 436,307 | 326,972 | 109,335 | 33 | % | ||||||||||||||||
| Income tax expense | 15,171 | 16,858 | (1,687) | (10) | % | 85,313 | 20,200 | 65,113 | N/M | |||||||||||||||||
| Net income | 76,877 | 67,002 | 9,875 | 15 | % | 350,994 | 306,771 | 44,223 | 14 | % | ||||||||||||||||
| Preferred stock dividends | 2,875 | 5,207 | (2,332) | (45) | % | 17,111 | 18,358 | (1,247) | (7) | % | ||||||||||||||||
| Net income available to common equity | $ | 74,002 | $ | 61,795 | $ | 12,207 | 20 | % | $ | 333,883 | $ | 288,413 | $ | 45,470 | 16 | % | ||||||||||
| Earnings per common share | ||||||||||||||||||||||||||
| Basic | $ | 0.49 | $ | 0.40 | $ | 0.09 | 23 | % | $ | 2.20 | $ | 1.87 | $ | 0.33 | 18 | % | ||||||||||
| Diluted | $ | 0.49 | $ | 0.40 | $ | 0.09 | 23 | % | $ | 2.18 | $ | 1.86 | $ | 0.32 | 17 | % | ||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||
| Basic | 148,697 | 152,497 | (3,800) | (2) | % | 150,773 | 153,005 | (2,232) | (1) | % | ||||||||||||||||
| Diluted | 150,057 | 153,262 | (3,205) | (2) | % | 151,987 | 153,642 | (1,655) | (1) | % | ||||||||||||||||
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) YTD 2020 includes a gain of $163 million from the sale of Associated Benefits & Risk Consulting.
(b) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell.
2
| Associated Banc-Corp Consolidated Statements of Income (Unaudited) - Quarterly Trend | |||||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Seql Qtr | Comp Qtr | |||||||||||||||||||||||||||
| 4Q21 | 3Q21 | $ Change | % Change | 2Q21 | 1Q21 | 4Q20 | $ Change | % Change | |||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 170,809 | $ | 174,643 | $ | (3,834) | (2) | % | $ | 174,228 | $ | 174,049 | $ | 185,934 | $ | (15,125) | (8) | % | |||||||||||
| Interest and dividends on investment securities | |||||||||||||||||||||||||||||
| Taxable | 13,317 | 8,745 | 4,572 | 52 | % | 8,840 | 7,014 | 9,746 | 3,571 | 37 | % | ||||||||||||||||||
| Tax-exempt | 15,569 | 14,613 | 956 | 7 | % | 14,366 | 14,162 | 14,296 | 1,273 | 9 | % | ||||||||||||||||||
| Other interest | 2,031 | 2,281 | (250) | (11) | % | 1,826 | 1,694 | 1,699 | 332 | 20 | % | ||||||||||||||||||
| Total interest income | 201,726 | 200,282 | 1,444 | 1 | % | 199,260 | 196,920 | 211,675 | (9,949) | (5) | % | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest on deposits | 3,677 | 4,427 | (750) | (17) | % | 4,609 | 5,909 | 7,762 | (4,085) | (53) | % | ||||||||||||||||||
| Interest on federal funds purchased and securities sold under agreements to repurchase | 40 | 48 | (8) | (17) | % | 30 | 26 | 32 | 8 | 25 | % | ||||||||||||||||||
| Interest on other short-term funding | 2 | 8 | (6) | (75) | % | 7 | 6 | 5 | (3) | (60) | % | ||||||||||||||||||
| Interest on PPPLF | — | — | — | N/M | — | — | 410 | (410) | (100) | % | |||||||||||||||||||
| Interest on FHLB Advances | 8,514 | 8,962 | (448) | (5) | % | 9,524 | 9,493 | 9,888 | (1,374) | (14) | % | ||||||||||||||||||
| Interest on long-term funding | 2,730 | 3,163 | (433) | (14) | % | 5,575 | 5,585 | 5,585 | (2,855) | (51) | % | ||||||||||||||||||
| Total interest expense | 14,963 | 16,607 | (1,644) | (10) | % | 19,745 | 21,018 | 23,682 | (8,719) | (37) | % | ||||||||||||||||||
| Net interest income | 186,763 | 183,675 | 3,088 | 2 | % | 179,515 | 175,902 | 187,993 | (1,230) | (1) | % | ||||||||||||||||||
| Provision for credit losses | (5,993) | (24,010) | 18,017 | (75) | % | (35,004) | (23,004) | 16,997 | (22,990) | N/M | |||||||||||||||||||
| Net interest income after provision for credit losses | 192,756 | 207,685 | (14,929) | (7) | % | 214,519 | 198,906 | 170,996 | 21,760 | 13 | % | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Wealth management fees | 22,625 | 22,110 | 515 | 2 | % | 22,706 | 22,414 | 22,073 | 552 | 3 | % | ||||||||||||||||||
| Service charges and deposit account fees | 17,039 | 16,962 | 77 | — | % | 15,549 | 14,855 | 15,318 | 1,721 | 11 | % | ||||||||||||||||||
| Card-based fees | 11,176 | 11,113 | 63 | 1 | % | 10,982 | 9,743 | 9,848 | 1,328 | 13 | % | ||||||||||||||||||
| Other fee-based revenue | 4,316 | 3,929 | 387 | 10 | % | 4,244 | 4,596 | 4,998 | (682) | (14) | % | ||||||||||||||||||
| Capital markets, net | 9,674 | 7,114 | 2,560 | 36 | % | 5,696 | 8,118 | 5,898 | 3,776 | 64 | % | ||||||||||||||||||
| Mortgage banking, net | 8,041 | 10,657 | (2,616) | (25) | % | 8,128 | 23,925 | 14,537 | (6,496) | (45) | % | ||||||||||||||||||
| Bank and corporate owned life insurance | 4,704 | 2,760 | 1,944 | 70 | % | 3,088 | 2,702 | 3,978 | 726 | 18 | % | ||||||||||||||||||
| Insurance commissions and fees | 86 | 88 | (2) | (2) | % | 86 | 76 | 92 | (6) | (7) | % | ||||||||||||||||||
| Asset gains (losses), net | 985 | 5,228 | (4,243) | (81) | % | (14) | 4,809 | (1,356) | 2,341 | N/M | |||||||||||||||||||
| Investment securities gains (losses), net | — | — | — | N/M | 24 | (39) | — | — | N/M | ||||||||||||||||||||
Gains on sale of branches, net(a) | — | — | — | N/M | 36 | 1,002 | 7,449 | (7,449) | (100) | % | |||||||||||||||||||
| Other | 2,855 | 2,116 | 739 | 35 | % | 2,918 | 3,141 | 2,879 | (24) | (1) | % | ||||||||||||||||||
| Total noninterest income | 81,502 | 82,076 | (574) | (1) | % | 73,443 | 95,343 | 85,714 | (4,212) | (5) | % | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Personnel | 107,787 | 107,880 | (93) | — | % | 106,994 | 104,026 | 98,033 | 9,754 | 10 | % | ||||||||||||||||||
| Technology | 20,787 | 19,927 | 860 | 4 | % | 20,236 | 20,740 | 19,574 | 1,213 | 6 | % | ||||||||||||||||||
| Occupancy | 16,863 | 15,814 | 1,049 | 7 | % | 14,679 | 16,156 | 15,678 | 1,185 | 8 | % | ||||||||||||||||||
| Business development and advertising | 5,627 | 6,156 | (529) | (9) | % | 4,970 | 4,395 | 5,421 | 206 | 4 | % | ||||||||||||||||||
| Equipment | 4,905 | 5,200 | (295) | (6) | % | 5,481 | 5,518 | 5,555 | (650) | (12) | % | ||||||||||||||||||
| Legal and professional | 4,428 | 4,304 | 124 | 3 | % | 6,661 | 6,530 | 5,737 | (1,309) | (23) | % | ||||||||||||||||||
| Loan and foreclosure costs | 1,636 | 1,616 | 20 | 1 | % | 2,671 | 2,220 | 3,758 | (2,122) | (56) | % | ||||||||||||||||||
| FDIC assessment | 4,800 | 5,000 | (200) | (4) | % | 3,600 | 4,750 | 5,700 | (900) | (16) | % | ||||||||||||||||||
| Other intangible amortization | 2,203 | 2,203 | — | — | % | 2,203 | 2,236 | 2,253 | (50) | (2) | % | ||||||||||||||||||
| Other | 13,173 | 9,793 | 3,380 | 35 | % | 6,979 | 8,775 | 11,141 | 2,032 | 18 | % | ||||||||||||||||||
| Total noninterest expense | 182,210 | 177,892 | 4,318 | 2 | % | 174,475 | 175,347 | 172,850 | 9,360 | 5 | % | ||||||||||||||||||
| Income before income taxes | 92,048 | 111,870 | (19,822) | (18) | % | 113,487 | 118,903 | 83,860 | 8,188 | 10 | % | ||||||||||||||||||
| Income tax expense | 15,171 | 23,060 | (7,889) | (34) | % | 22,480 | 24,602 | 16,858 | (1,687) | (10) | % | ||||||||||||||||||
| Net income | 76,877 | 88,809 | (11,932) | (13) | % | 91,007 | 94,301 | 67,002 | 9,875 | 15 | % | ||||||||||||||||||
| Preferred stock dividends | 2,875 | 4,155 | (1,280) | (31) | % | 4,875 | 5,207 | 5,207 | (2,332) | (45) | % | ||||||||||||||||||
| Net income available to common equity | $ | 74,002 | $ | 84,655 | $ | (10,653) | (13) | % | $ | 86,131 | $ | 89,094 | $ | 61,795 | $ | 12,207 | 20 | % | |||||||||||
| Earnings per common share | |||||||||||||||||||||||||||||
| Basic | $ | 0.49 | $ | 0.56 | $ | (0.07) | (13) | % | $ | 0.56 | $ | 0.58 | $ | 0.40 | $ | 0.09 | 23 | % | |||||||||||
| Diluted | $ | 0.49 | $ | 0.56 | $ | (0.07) | (13) | % | $ | 0.56 | $ | 0.58 | $ | 0.40 | $ | 0.09 | 23 | % | |||||||||||
| Average common shares outstanding | |||||||||||||||||||||||||||||
| Basic | 148,697 | 150,046 | (1,349) | (1) | % | 152,042 | 152,355 | 152,497 | (3,800) | (2) | % | ||||||||||||||||||
| Diluted | 150,057 | 151,143 | (1,086) | (1) | % | 153,381 | 153,688 | 153,262 | (3,205) | (2) | % | ||||||||||||||||||
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell
3
| Associated Banc-Corp Selected Quarterly Information | |||||||||||||||||||||||
| ($ in millions except per share data; shares repurchased and outstanding in thousands) | YTD Dec 2021 | YTD Dec 2020 | 4Q21 | 3Q21 | 2Q21 | 1Q21 | 4Q20 | ||||||||||||||||
| Per common share data | |||||||||||||||||||||||
| Dividends | $ | 0.76 | $ | 0.72 | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.18 | $ | 0.18 | |||||||||
| Market value: | |||||||||||||||||||||||
| High | 23.92 | 21.94 | 23.92 | 21.85 | 23.33 | 23.14 | 17.17 | ||||||||||||||||
| Low | 17.20 | 10.85 | 21.49 | 18.56 | 20.36 | 17.20 | 12.68 | ||||||||||||||||
| Close | 22.59 | 21.42 | 20.48 | 21.34 | 17.05 | ||||||||||||||||||
| Book value | 25.66 | 25.35 | 24.99 | 24.56 | 24.34 | ||||||||||||||||||
| Tangible book value / share | 17.87 | 17.58 | 17.35 | 16.95 | 16.67 | ||||||||||||||||||
| Performance ratios (annualized) | |||||||||||||||||||||||
| Return on average assets | 1.02 | % | 0.90 | % | 0.87 | % | 1.01 | % | 1.06 | % | 1.14 | % | 0.78 | % | |||||||||
| Noninterest expense / average assets | 2.06 | % | 2.26 | % | 2.06 | % | 2.03 | % | 2.04 | % | 2.11 | % | 2.02 | % | |||||||||
| Effective tax rate | 19.55 | % | 6.18 | % | 16.48 | % | 20.61 | % | 19.81 | % | 20.69 | % | 20.10 | % | |||||||||
Dividend payout ratio(a) | 34.55 | % | 38.50 | % | 40.82 | % | 35.71 | % | 32.14 | % | 31.03 | % | 45.00 | % | |||||||||
| Net interest margin | 2.39 | % | 2.53 | % | 2.40 | % | 2.38 | % | 2.37 | % | 2.39 | % | 2.49 | % | |||||||||
| Selected trend information | |||||||||||||||||||||||
Average full time equivalent employees(b) | 4,003 | 4,459 | 3,992 | 4,010 | 3,990 | 4,020 | 4,134 | ||||||||||||||||
| Branch count | 215 | 224 | 224 | 227 | 228 | ||||||||||||||||||
Assets under management, at market value(c) | $ | 13,679 | $ | 13,148 | $ | 13,141 | $ | 12,553 | $ | 13,314 | |||||||||||||
| Mortgage loans originated for sale during period | $ | 1,750 | $ | 1,642 | $ | 404 | $ | 456 | $ | 477 | $ | 413 | $ | 323 | |||||||||
| Mortgage loan settlements during period | $ | 1,775 | $ | 1,960 | $ | 427 | $ | 463 | $ | 484 | $ | 400 | $ | 339 | |||||||||
| Mortgage portfolio loans transferred to held for sale during period | $ | — | $ | 269 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Mortgage portfolio serviced for others | $ | 6,995 | $ | 7,057 | $ | 7,150 | $ | 7,313 | $ | 7,744 | |||||||||||||
| Mortgage servicing rights, net / mortgage portfolio serviced for others | 0.78 | % | 0.71 | % | 0.68 | % | 0.68 | % | 0.54 | % | |||||||||||||
Shares repurchased during period(d) | 6,295 | 4,264 | 1,096 | 2,919 | 1,314 | 966 | — | ||||||||||||||||
| Shares outstanding, end of period | 149,343 | 149,961 | 152,865 | 153,685 | 153,540 | ||||||||||||||||||
| Paycheck Protection Program fees, net | |||||||||||||||||||||||
| Deferred fees, beginning of period | $ | 12 | $ | — | $ | 7 | $ | 15 | $ | 18 | $ | 12 | $ | 21 | |||||||||
| Fees received | 18 | 28 | — | — | 6 | 12 | — | ||||||||||||||||
| Fees recognized | (29) | (16) | (5) | (9) | (8) | (7) | (9) | ||||||||||||||||
| Deferred fees, end of period | $ | 2 | $ | 12 | $ | 2 | $ | 7 | $ | 15 | $ | 18 | $ | 12 | |||||||||
| Selected quarterly ratios | |||||||||||||||||||||||
| Loans / deposits | 85.10 | % | 84.81 | % | 87.83 | % | 87.30 | % | 92.33 | % | |||||||||||||
| Stockholders’ equity / assets | 11.47 | % | 11.60 | % | 12.03 | % | 11.94 | % | 12.24 | % | |||||||||||||
Risk-based capital(e)(f) | |||||||||||||||||||||||
| Total risk-weighted assets | $ | 27,243 | $ | 26,304 | $ | 26,073 | $ | 25,640 | $ | 25,903 | |||||||||||||
| Common equity Tier 1 | $ | 2,808 | $ | 2,780 | $ | 2,790 | $ | 2,759 | $ | 2,706 | |||||||||||||
| Common equity Tier 1 capital ratio | 10.31 | % | 10.57 | % | 10.70 | % | 10.76 | % | 10.45 | % | |||||||||||||
| Tier 1 capital ratio | 11.02 | % | 11.30 | % | 11.81 | % | 12.14 | % | 11.81 | % | |||||||||||||
| Total capital ratio | 13.10 | % | 13.50 | % | 14.02 | % | 14.36 | % | 14.02 | % | |||||||||||||
| Tier 1 leverage ratio | 8.83 | % | 8.81 | % | 9.23 | % | 9.53 | % | 9.37 | % | |||||||||||||
| Mortgage banking, net | |||||||||||||||||||||||
Mortgage servicing fees, net(g) | $ | — | $ | (1) | $ | 1 | $ | — | $ | — | $ | (1) | $ | (1) | |||||||||
| Gains (losses) and fair value adjustments on loans held for sale | 35 | 60 | 3 | 8 | 9 | 15 | 15 | ||||||||||||||||
| Fair value adjustment on portfolio loans transferred to held for sale | — | 4 | — | — | — | — | — | ||||||||||||||||
| Mortgage servicing rights (impairment) recovery | 16 | (18) | 4 | 2 | — | 11 | 1 | ||||||||||||||||
| Mortgage banking, net | $ | 51 | $ | 46 | $ | 8 | $ | 11 | $ | 8 | $ | 24 | $ | 15 | |||||||||
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)Does not include repurchases related to tax withholding on equity compensation.
(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, 2021 data is estimated.
(g)Includes mortgage origination and servicing fees, net of mortgage servicing rights amortization.
4
| Associated Banc-Corp Selected Asset Quality Information | |||||||||||||||||||||||
| ($ in thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| Allowance for loan losses | |||||||||||||||||||||||
| Balance at beginning of period | $ | 290,997 | $ | 318,811 | (9) | % | $ | 352,938 | $ | 383,702 | $ | 384,711 | (24) | % | |||||||||
| Provision for loan losses | (4,500) | (20,000) | (78) | % | (29,500) | (26,000) | 26,500 | N/M | |||||||||||||||
| Charge offs | (8,869) | (10,929) | (19) | % | (7,681) | (13,174) | (30,315) | (71) | % | ||||||||||||||
| Recoveries | 2,387 | 3,115 | (23) | % | 3,054 | 8,410 | 2,805 | (15) | % | ||||||||||||||
| Net charge offs | (6,482) | (7,814) | (17) | % | (4,628) | (4,764) | (27,510) | (76) | % | ||||||||||||||
| Balance at end of period | $ | 280,015 | $ | 290,997 | (4) | % | $ | 318,811 | $ | 352,938 | $ | 383,702 | (27) | % | |||||||||
| Allowance for unfunded commitments | |||||||||||||||||||||||
| Balance at beginning of period | $ | 41,276 | $ | 45,276 | (9) | % | $ | 50,776 | $ | 47,776 | $ | 57,276 | (28) | % | |||||||||
| Provision for unfunded commitments | (1,500) | (4,000) | (63) | % | (5,500) | 3,000 | (9,500) | (84) | % | ||||||||||||||
| Balance at end of period | $ | 39,776 | $ | 41,276 | (4) | % | $ | 45,276 | $ | 50,776 | $ | 47,776 | (17) | % | |||||||||
| Allowance for credit losses on loans (ACLL) | $ | 319,791 | $ | 332,273 | (4) | % | $ | 364,087 | $ | 403,714 | $ | 431,478 | (26) | % | |||||||||
| Provision for credit losses on loans | $ | (6,000) | $ | (24,000) | (75) | % | $ | (35,000) | $ | (23,000) | $ | 17,000 | N/M | ||||||||||
| ($ in thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| Net (charge offs) recoveries | |||||||||||||||||||||||
| Commercial and industrial | (6,642) | (9,057) | (27) | % | 1,333 | 1,367 | (8,514) | (22) | % | ||||||||||||||
| Commercial real estate—owner occupied | 4 | 106 | (96) | % | 5 | 4 | 143 | (97) | % | ||||||||||||||
| Commercial and business lending | (6,638) | (8,951) | (26) | % | 1,338 | 1,370 | (8,371) | (21) | % | ||||||||||||||
| Commercial real estate—investor | 109 | 181 | (40) | % | (5,589) | (5,886) | (18,696) | N/M | |||||||||||||||
| Real estate construction | 52 | 18 | 189 | % | 23 | 29 | 43 | 21 | % | ||||||||||||||
| Commercial real estate lending | 162 | 199 | (19) | % | (5,566) | (5,857) | (18,653) | N/M | |||||||||||||||
| Total commercial | (6,476) | (8,752) | (26) | % | (4,228) | (4,487) | (27,024) | (76) | % | ||||||||||||||
| Residential mortgage | (6) | 300 | N/M | (223) | (109) | (162) | (96) | % | |||||||||||||||
| Home equity | 546 | 959 | (43) | % | 337 | 344 | 335 | 63 | % | ||||||||||||||
| Other consumer | (534) | (329) | 62 | % | (517) | (521) | (668) | (20) | % | ||||||||||||||
| Auto finance | (11) | 8 | N/M | 3 | 9 | 9 | N/M | ||||||||||||||||
| Total consumer | (6) | 938 | N/M | (400) | (277) | (486) | (99) | % | |||||||||||||||
| Total net (charge offs) recoveries | $ | (6,482) | $ | (7,814) | (17) | % | $ | (4,628) | $ | (4,764) | $ | (27,510) | (76) | % | |||||||||
| (In basis points) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||||||||||||||||||
| Net charge offs to average loans (annualized) | |||||||||||||||||||||||
| Commercial and industrial | (33) | (46) | 7 | 7 | (45) | ||||||||||||||||||
| Commercial real estate—owner occupied | — | 5 | — | — | 6 | ||||||||||||||||||
| Commercial and business lending | (29) | (40) | 6 | 6 | (35) | ||||||||||||||||||
| Commercial real estate—investor | 1 | 2 | (52) | (55) | (173) | ||||||||||||||||||
| Real estate construction | 1 | — | 1 | 1 | 1 | ||||||||||||||||||
| Commercial real estate lending | 1 | 1 | (36) | (38) | (121) | ||||||||||||||||||
| Total commercial | (17) | (23) | (11) | (12) | (69) | ||||||||||||||||||
| Residential mortgage | — | 2 | (1) | (1) | (1) | ||||||||||||||||||
| Home equity | 36 | 61 | 21 | 21 | 18 | ||||||||||||||||||
| Other consumer | (71) | (44) | (72) | (72) | (88) | ||||||||||||||||||
| Auto finance | (9) | 43 | 15 | 37 | 29 | ||||||||||||||||||
| Total consumer | — | 4 | (2) | (1) | (2) | ||||||||||||||||||
| Total net charge offs | (11) | (13) | (8) | (8) | (44) | ||||||||||||||||||
| ($ in thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| Credit Quality | |||||||||||||||||||||||
| Nonaccrual loans | $ | 130,443 | $ | 135,062 | (3) | % | $ | 147,135 | $ | 163,292 | $ | 210,854 | (38) | % | |||||||||
| Other real estate owned (OREO) | 29,619 | 33,855 | (13) | % | 24,000 | 24,588 | 14,269 | 108 | % | ||||||||||||||
| Total nonperforming assets | $ | 160,062 | $ | 168,917 | (5) | % | $ | 171,135 | $ | 187,880 | $ | 225,123 | (29) | % | |||||||||
| Loans 90 or more days past due and still accruing | $ | 1,263 | $ | 1,029 | 23 | % | $ | 1,302 | $ | 1,675 | $ | 1,598 | (21) | % | |||||||||
| Allowance for credit losses on loans to total loans | 1.32 | % | 1.41 | % | 1.52 | % | 1.67 | % | 1.76 | % | |||||||||||||
| Allowance for credit losses on loans to nonaccrual loans | 245.16 | % | 246.02 | % | 247.45 | % | 247.23 | % | 204.63 | % | |||||||||||||
| Nonaccrual loans to total loans | 0.54 | % | 0.57 | % | 0.61 | % | 0.68 | % | 0.86 | % | |||||||||||||
| Nonperforming assets to total loans plus OREO | 0.66 | % | 0.71 | % | 0.71 | % | 0.78 | % | 0.92 | % | |||||||||||||
| Nonperforming assets to total assets | 0.46 | % | 0.49 | % | 0.50 | % | 0.54 | % | 0.67 | % | |||||||||||||
| Year-to-date net charge offs to year-to-date average loans (annualized) | 0.10 | % | 0.10 | % | 0.08 | % | 0.08 | % | 0.41 | % | |||||||||||||
N/M = Not meaningful
5
| Associated Banc-Corp Selected Asset Quality Information (continued) | |||||||||||||||||||||||
| (In thousands) | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||
| PPP Loans | $ | 46 | $ | — | N/M | $ | — | $ | — | $ | — | N/M | |||||||||||
| Commercial and industrial | 6,233 | 8,497 | (27) | % | 18,380 | 33,192 | 61,859 | (90) | % | ||||||||||||||
| Commercial real estate—owner occupied | — | 7 | (100) | % | 7 | 7 | 1,058 | (100) | % | ||||||||||||||
| Commercial and business lending | 6,279 | 8,504 | (26) | % | 18,387 | 33,200 | 62,917 | (90) | % | ||||||||||||||
| Commercial real estate—investor | 60,677 | 61,504 | (1) | % | 63,003 | 58,485 | 78,220 | (22) | % | ||||||||||||||
| Real estate construction | 177 | 247 | (28) | % | 247 | 327 | 353 | (50) | % | ||||||||||||||
| Commercial real estate lending | 60,855 | 61,751 | (1) | % | 63,250 | 58,813 | 78,573 | (23) | % | ||||||||||||||
| Total commercial | 67,134 | 70,256 | (4) | % | 81,637 | 92,012 | 141,490 | (53) | % | ||||||||||||||
| Residential mortgage | 55,362 | 56,678 | (2) | % | 56,795 | 61,256 | 59,337 | (7) | % | ||||||||||||||
| Home equity | 7,726 | 7,838 | (1) | % | 8,517 | 9,792 | 9,888 | (22) | % | ||||||||||||||
| Other consumer | 170 | 222 | (23) | % | 131 | 195 | 91 | 87 | % | ||||||||||||||
| Auto | 52 | 67 | (22) | % | 56 | 36 | 49 | 6 | % | ||||||||||||||
| Total consumer | 63,309 | 64,806 | (2) | % | 65,498 | 71,280 | 69,364 | (9) | % | ||||||||||||||
| Total nonaccrual loans | $ | 130,443 | $ | 135,062 | (3) | % | $ | 147,135 | $ | 163,292 | $ | 210,854 | (38) | % | |||||||||
| Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | |||||||||||||||||
Restructured loans (accruing)(a) | |||||||||||||||||||||||
| Commercial and industrial | $ | 8,687 | $ | 11,067 | (22) | % | $ | 11,569 | $ | 11,985 | $ | 12,713 | (32) | % | |||||||||
| Commercial real estate—owner occupied | 967 | 1,031 | (6) | % | 1,225 | 1,488 | 1,711 | (43) | % | ||||||||||||||
| Commercial and business lending | 9,655 | 12,098 | (20) | % | 12,794 | 13,473 | 14,424 | (33) | % | ||||||||||||||
| Commercial real estate—investor | 12,866 | 13,236 | (3) | % | 13,306 | 13,627 | 26,435 | (51) | % | ||||||||||||||
| Real estate construction | 242 | 248 | (2) | % | 253 | 256 | 260 | (7) | % | ||||||||||||||
| Commercial real estate lending | 13,108 | 13,484 | (3) | % | 13,559 | 13,884 | 26,695 | (51) | % | ||||||||||||||
| Total commercial | 22,763 | 25,582 | (11) | % | 26,353 | 27,356 | 41,119 | (45) | % | ||||||||||||||
| Residential mortgage | 16,316 | 15,253 | 7 | % | 12,227 | 10,462 | 7,825 | 109 | % | ||||||||||||||
| Home equity | 2,648 | 2,787 | (5) | % | 2,451 | 1,929 | 1,957 | 35 | % | ||||||||||||||
| Other consumer | 803 | 877 | (8) | % | 904 | 1,073 | 1,191 | (33) | % | ||||||||||||||
| Total consumer | 19,768 | 18,917 | 4 | % | 15,582 | 13,464 | 10,973 | 80 | % | ||||||||||||||
| Total restructured loans (accruing) | $ | 42,530 | $ | 44,499 | (4) | % | $ | 41,935 | $ | 40,820 | $ | 52,092 | (18) | % | |||||||||
| Nonaccrual restructured loans (included in nonaccrual loans) | $ | 17,426 | $ | 15,226 | 14 | % | $ | 17,237 | $ | 17,624 | $ | 20,190 | (14) | % | |||||||||
| Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | |||||||||||||||||
| Accruing Loans 30-89 Days Past Due | |||||||||||||||||||||||
| PPP Loans | $ | 83 | $ | 568 | (85) | % | $ | — | $ | — | $ | — | N/M | ||||||||||
| Commercial and industrial | 632 | 1,229 | (49) | % | 258 | 526 | 6,119 | (90) | % | ||||||||||||||
| Commercial real estate—owner occupied | 163 | 30 | N/M | 47 | — | 373 | (56) | % | |||||||||||||||
| Commercial and business lending | 878 | 1,827 | (52) | % | 306 | 526 | 6,492 | (86) | % | ||||||||||||||
| Commercial real estate—investor | 616 | 17,021 | (96) | % | 391 | 5,999 | 12,793 | (95) | % | ||||||||||||||
| Real estate construction | 1,620 | — | N/M | 117 | 977 | 991 | 63 | % | |||||||||||||||
| Commercial real estate lending | 2,236 | 17,021 | (87) | % | 509 | 6,976 | 13,784 | (84) | % | ||||||||||||||
| Total commercial | 3,114 | 18,848 | (83) | % | 814 | 7,502 | 20,276 | (85) | % | ||||||||||||||
| Residential mortgage | 6,169 | 7,095 | (13) | % | 5,015 | 3,973 | 10,385 | (41) | % | ||||||||||||||
| Home equity | 3,711 | 2,931 | 27 | % | 2,472 | 2,352 | 4,802 | (23) | % | ||||||||||||||
| Other consumer | 2,307 | 1,272 | 81 | % | 1,036 | 1,246 | 1,543 | 50 | % | ||||||||||||||
| Auto | 11 | 10 | 10 | % | 38 | 24 | 57 | (81) | % | ||||||||||||||
| Total consumer | 12,198 | 11,308 | 8 | % | 8,562 | 7,594 | 16,786 | (27) | % | ||||||||||||||
| Total accruing loans 30-89 days past due | $ | 15,312 | $ | 30,156 | (49) | % | $ | 9,376 | $ | 15,097 | $ | 37,062 | (59) | % | |||||||||
| Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | |||||||||||||||||
| Potential Problem Loans | |||||||||||||||||||||||
PPP Loans(b) | $ | 2,000 | $ | 4,160 | (52) | % | $ | 8,695 | $ | 22,398 | $ | 18,002 | (89) | % | |||||||||
| Commercial and industrial | 138,258 | 124,990 | 11 | % | 77,064 | 122,143 | 121,487 | 14 | % | ||||||||||||||
| Commercial real estate—owner occupied | 26,723 | 21,241 | 26 | % | 17,828 | 15,965 | 26,179 | 2 | % | ||||||||||||||
| Commercial and business lending | 166,981 | 150,391 | 11 | % | 103,587 | 160,506 | 165,668 | 1 | % | ||||||||||||||
| Commercial real estate—investor | 106,138 | 78,962 | 34 | % | 71,613 | 85,752 | 91,396 | 16 | % | ||||||||||||||
| Real estate construction | 21,408 | 19,187 | 12 | % | 16,465 | 13,977 | 19,046 | 12 | % | ||||||||||||||
| Commercial real estate lending | 127,546 | 98,150 | 30 | % | 88,078 | 99,728 | 110,442 | 15 | % | ||||||||||||||
| Total commercial | 294,527 | 248,541 | 19 | % | 191,665 | 260,234 | 276,111 | 7 | % | ||||||||||||||
| Residential mortgage | 2,214 | 2,374 | (7) | % | 3,024 | 2,524 | 3,749 | (41) | % | ||||||||||||||
| Home equity | 165 | 171 | (4) | % | 1,558 | 1,729 | 2,068 | (92) | % | ||||||||||||||
| Total consumer | 2,379 | 2,546 | (7) | % | 4,583 | 4,254 | 5,817 | (59) | % | ||||||||||||||
| Total potential problem loans | $ | 296,905 | $ | 251,087 | 18 | % | $ | 196,248 | $ | 264,488 | $ | 281,928 | 5 | % | |||||||||
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Does not include any restructured loans related to the COVID-19 pandemic in accordance with Section 4013 of the CARES Act.
(b) The Corporation's policy is to assign risk ratings at the borrower level. PPP loans are 100% guaranteed by the SBA and therefore the Corporation considers these loans to have a risk profile similar to pass rated loans.
6
| Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
| ($ 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 PPP lending | $ | 115,074 | $ | 5,055 | 17.43 | % | $ | 275,414 | $ | 9,633 | 13.88 | % | $ | 929,859 | $ | 10,854 | 4.64 | % | |||||||||||
| Asset-based lending (ABL) | 125,507 | 971 | 3.07 | % | 99,463 | 766 | 3.06 | % | 126,202 | 960 | 3.03 | % | |||||||||||||||||
| Commercial and business lending (excl PPP & ABL) | 8,715,796 | 53,401 | 2.43 | % | 8,609,196 | 53,333 | 2.46 | % | 8,387,548 | 56,514 | 2.68 | % | |||||||||||||||||
| Commercial real estate lending | 6,134,049 | 45,040 | 2.91 | % | 6,160,241 | 44,859 | 2.89 | % | 6,157,622 | 44,636 | 2.88 | % | |||||||||||||||||
| Total commercial | 15,090,427 | 104,468 | 2.75 | % | 15,144,314 | 108,591 | 2.85 | % | 15,601,230 | 112,963 | 2.88 | % | |||||||||||||||||
| Residential mortgage | 7,751,337 | 54,952 | 2.84 | % | 7,817,737 | 55,305 | 2.83 | % | 8,029,585 | 60,292 | 3.00 | % | |||||||||||||||||
| Total Retail | 953,489 | 11,775 | 4.92 | % | 921,906 | 11,120 | 4.81 | % | 1,051,022 | 13,035 | 4.95 | % | |||||||||||||||||
| Total loans | 23,795,253 | 171,195 | 2.86 | % | 23,883,957 | 175,016 | 2.92 | % | 24,681,837 | 186,290 | 3.01 | % | |||||||||||||||||
| Investment securities | |||||||||||||||||||||||||||||
| Taxable | 4,067,612 | 13,317 | 1.31 | % | 3,258,587 | 8,745 | 1.07 | % | 3,155,508 | 9,746 | 1.24 | % | |||||||||||||||||
Tax-exempt(a) | 2,257,106 | 19,617 | 3.48 | % | 2,029,126 | 18,412 | 3.63 | % | 1,909,512 | 17,870 | 3.74 | % | |||||||||||||||||
| Other short-term investments | 1,592,840 | 2,031 | 0.51 | % | 2,215,805 | 2,281 | 0.41 | % | 985,091 | 1,699 | 0.69 | % | |||||||||||||||||
| Investments and other | 7,917,558 | 34,965 | 1.76 | % | 7,503,518 | 29,439 | 1.57 | % | 6,050,111 | 29,315 | 1.94 | % | |||||||||||||||||
| Total earning assets | 31,712,810 | $ | 206,160 | 2.59 | % | 31,387,475 | $ | 204,455 | 2.59 | % | 30,731,948 | $ | 215,605 | 2.80 | % | ||||||||||||||
| Other assets, net | 3,303,349 | 3,372,013 | 3,343,844 | ||||||||||||||||||||||||||
| Total assets | $ | 35,016,159 | $ | 34,759,489 | $ | 34,075,792 | |||||||||||||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||
| Savings | $ | 4,367,233 | $ | 369 | 0.03 | % | $ | 4,248,493 | $ | 377 | 0.04 | % | $ | 3,628,458 | $ | 356 | 0.04 | % | |||||||||||
| Interest-bearing demand | 6,506,438 | 1,015 | 0.06 | % | 6,344,504 | 1,361 | 0.09 | % | 5,739,983 | 1,215 | 0.08 | % | |||||||||||||||||
| Money market | 6,892,803 | 927 | 0.05 | % | 7,011,075 | 1,019 | 0.06 | % | 6,539,583 | 1,121 | 0.07 | % | |||||||||||||||||
| Network transaction deposits | 838,255 | 239 | 0.11 | % | 893,991 | 290 | 0.13 | % | 1,265,748 | 468 | 0.15 | % | |||||||||||||||||
| Time deposits | 1,381,092 | 1,127 | 0.32 | % | 1,434,588 | 1,379 | 0.38 | % | 1,888,074 | 4,602 | 0.97 | % | |||||||||||||||||
| Total interest-bearing deposits | 19,985,821 | 3,677 | 0.07 | % | 19,932,650 | 4,427 | 0.09 | % | 19,061,847 | 7,762 | 0.16 | % | |||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 293,948 | 40 | 0.05 | % | 238,735 | 48 | 0.08 | % | 164,091 | 32 | 0.08 | % | |||||||||||||||||
| Commercial Paper | 44,250 | 2 | 0.01 | % | 55,864 | 8 | 0.05 | % | 40,128 | 5 | 0.05 | % | |||||||||||||||||
| PPPLF | — | — | — | % | — | — | — | % | 464,119 | 410 | 0.35 | % | |||||||||||||||||
| FHLB advances | 1,621,097 | 8,514 | 2.08 | % | 1,620,790 | 8,962 | 2.19 | % | 1,660,274 | 9,888 | 2.37 | % | |||||||||||||||||
| Long-term funding | 249,223 | 2,730 | 4.38 | % | 288,236 | 3,163 | 4.39 | % | 549,307 | 5,585 | 4.07 | % | |||||||||||||||||
| Total short and long-term funding | 2,208,518 | 11,286 | 2.03 | % | 2,203,625 | 12,180 | 2.20 | % | 2,877,919 | 15,920 | 2.20 | % | |||||||||||||||||
| Total interest-bearing liabilities | 22,194,339 | $ | 14,963 | 0.27 | % | 22,136,276 | $ | 16,607 | 0.30 | % | 21,939,766 | $ | 23,682 | 0.43 | % | ||||||||||||||
| Noninterest-bearing demand deposits | 8,416,525 | 8,141,723 | 7,677,003 | ||||||||||||||||||||||||||
| Other liabilities | 401,433 | 401,077 | 405,430 | ||||||||||||||||||||||||||
| Stockholders’ equity | 4,003,863 | 4,080,413 | 4,053,593 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 35,016,159 | $ | 34,759,489 | $ | 34,075,792 | |||||||||||||||||||||||
| Interest rate spread | 2.32 | % | 2.29 | % | 2.37 | % | |||||||||||||||||||||||
| Net free funds | 0.08 | % | 0.09 | % | 0.12 | % | |||||||||||||||||||||||
| Fully tax-equivalent net interest income and net interest margin ("NIM") | $ | 191,197 | 2.40 | % | $ | 187,848 | 2.38 | % | $ | 191,923 | 2.49 | % | |||||||||||||||||
| Fully tax-equivalent adjustment | 4,434 | 4,172 | 3,930 | ||||||||||||||||||||||||||
| Net interest income | $ | 186,763 | $ | 183,675 | $ | 187,993 | |||||||||||||||||||||||
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.
7
| Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year Over Year | ||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||
| ($ 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 PPP lending | $ | 472,216 | $ | 33,637 | 7.12 | % | $ | 701,111 | $ | 21,867 | 3.12 | % | ||||||||
| Asset-based lending (ABL) | 120,903 | 3,704 | 3.06 | % | 177,710 | 6,039 | 3.40 | % | ||||||||||||
| Commercial and business lending (excl PPP & ABL) | 8,511,364 | 212,744 | 2.50 | % | 8,531,333 | 252,699 | 2.96 | % | ||||||||||||
| Commercial real estate lending | 6,156,214 | 178,354 | 2.90 | % | 5,811,498 | 192,545 | 3.31 | % | ||||||||||||
| Total commercial | 15,260,697 | 428,439 | 2.81 | % | 15,221,651 | 473,150 | 3.11 | % | ||||||||||||
Residential mortgage | 7,847,564 | 221,099 | 2.82 | % | 8,190,190 | 254,814 | 3.11 | % | ||||||||||||
| Total retail | 949,719 | 45,723 | 4.81 | % | 1,125,806 | 58,655 | 5.21 | % | ||||||||||||
| Total loans | 24,057,980 | 695,260 | 2.89 | % | 24,537,648 | 786,619 | 3.21 | % | ||||||||||||
| Investment securities | ||||||||||||||||||||
| Taxable | 3,383,528 | 37,916 | 1.12 | % | 3,295,718 | 59,806 | 1.81 | % | ||||||||||||
Tax-exempt (a) | 2,036,030 | 73,975 | 3.63 | % | 1,930,853 | 72,901 | 3.78 | % | ||||||||||||
| Other short-term investments | 1,644,995 | 7,833 | 0.48 | % | 1,067,788 | 9,473 | 0.89 | % | ||||||||||||
| Investments and other | 7,064,552 | 119,724 | 1.69 | % | 6,294,359 | 142,179 | 2.26 | % | ||||||||||||
| Total earning assets | 31,122,532 | $ | 814,984 | 2.62 | % | 30,832,007 | $ | 928,799 | 3.01 | % | ||||||||||
| Other assets, net | 3,341,725 | 3,433,200 | ||||||||||||||||||
| Total assets | $ | 34,464,257 | $ | 34,265,207 | ||||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||
| Savings | 4,138,732 | 1,435 | 0.03 | % | $ | 3,306,385 | $ | 2,966 | 0.09 | % | ||||||||||
| Interest-bearing demand | 6,113,660 | 4,610 | 0.08 | % | 5,583,144 | 12,496 | 0.22 | % | ||||||||||||
| Money market | 6,940,513 | 4,028 | 0.06 | % | 6,509,924 | 15,273 | 0.23 | % | ||||||||||||
| Network transaction deposits | 929,544 | 1,120 | 0.12 | % | 1,442,951 | 6,219 | 0.43 | % | ||||||||||||
| Time deposits | 1,495,060 | 7,429 | 0.50 | % | 2,281,040 | 30,685 | 1.35 | % | ||||||||||||
| Total interest-bearing deposits | 19,617,508 | 18,622 | 0.09 | % | 19,123,444 | 67,639 | 0.35 | % | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 207,132 | 143 | 0.07 | % | 175,713 | 485 | 0.28 | % | ||||||||||||
| Commercial Paper | 49,546 | 22 | 0.04 | % | 38,583 | 41 | 0.11 | % | ||||||||||||
| PPPLF | — | — | — | % | 565,371 | 1,984 | 0.35 | % | ||||||||||||
| Other short-term funding | — | — | — | % | 4,226 | 11 | 0.25 | % | ||||||||||||
| FHLB advances | 1,623,508 | 36,493 | 2.25 | % | 2,535,731 | 57,359 | 2.26 | % | ||||||||||||
| Long-term funding | 407,912 | 17,053 | 4.18 | % | 549,143 | 22,365 | 4.07 | % | ||||||||||||
| Total short and long-term funding | 2,288,098 | 53,712 | 2.35 | % | 3,868,767 | 82,245 | 2.13 | % | ||||||||||||
| Total interest-bearing liabilities | 21,905,605 | $ | 72,334 | 0.33 | % | 22,992,211 | $ | 149,883 | 0.65 | % | ||||||||||
| Noninterest-bearing demand deposits | 8,075,906 | 6,884,241 | ||||||||||||||||||
| Other liabilities | 403,296 | 444,183 | ||||||||||||||||||
| Stockholders’ equity | 4,079,449 | 3,944,572 | ||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 34,464,257 | $ | 34,265,207 | ||||||||||||||||
| Interest rate spread | 2.29 | % | 2.36 | % | ||||||||||||||||
| Net free funds | 0.10 | % | 0.17 | % | ||||||||||||||||
| Fully tax-equivalent net interest income and net interest margin ("NIM") | $ | 742,650 | 2.39 | % | $ | 778,915 | 2.53 | % | ||||||||||||
| Fully tax-equivalent adjustment | 16,796 | 15,959 | ||||||||||||||||||
| Net interest income | $ | 725,855 | $ | 762,957 | ||||||||||||||||
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.
8
| Associated Banc-Corp Loan and Deposit Composition | |||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||
| Period end loan composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| PPP Loans | $ | 66,070 | $ | 182,121 | (64) | % | $ | 405,482 | $ | 836,566 | $ | 767,757 | (91) | % | |||||||||
| Asset-based lending | 178,027 | 111,027 | 60 | % | 105,726 | 137,537 | 137,476 | 29 | % | ||||||||||||||
| Commercial and industrial | 8,208,289 | 7,816,432 | 5 | % | 7,803,393 | 7,526,964 | 7,563,945 | 9 | % | ||||||||||||||
| Commercial real estate—owner occupied | 971,326 | 879,554 | 10 | % | 880,755 | 883,237 | 900,912 | 8 | % | ||||||||||||||
| Commercial and business lending | 9,423,711 | 8,989,133 | 5 | % | 9,195,355 | 9,384,303 | 9,370,091 | 1 | % | ||||||||||||||
| Commercial real estate—investor | 4,384,569 | 4,296,489 | 2 | % | 4,300,651 | 4,260,706 | 4,342,584 | 1 | % | ||||||||||||||
| Real estate construction | 1,808,976 | 1,834,871 | (1) | % | 1,880,897 | 1,882,299 | 1,840,417 | (2) | % | ||||||||||||||
| Commercial real estate lending | 6,193,545 | 6,131,360 | 1 | % | 6,181,549 | 6,143,004 | 6,183,001 | — | % | ||||||||||||||
| Total commercial | 15,617,256 | 15,120,493 | 3 | % | 15,376,904 | 15,527,307 | 15,553,091 | — | % | ||||||||||||||
| Residential mortgage | 7,567,310 | 7,590,895 | — | % | 7,638,372 | 7,685,218 | 7,878,324 | (4) | % | ||||||||||||||
| Home equity | 595,615 | 608,566 | (2) | % | 631,783 | 651,647 | 707,255 | (16) | % | ||||||||||||||
| Other consumer | 301,723 | 294,979 | 2 | % | 292,660 | 288,990 | 301,876 | — | % | ||||||||||||||
| Auto finance | 143,045 | 6,739 | N/M | 7,817 | 9,165 | 11,177 | N/M | ||||||||||||||||
| Total consumer | 8,607,693 | 8,501,180 | 1 | % | 8,570,632 | 8,635,020 | 8,898,632 | (3) | % | ||||||||||||||
| Total loans | $ | 24,224,949 | $ | 23,621,673 | 3 | % | $ | 23,947,536 | $ | 24,162,328 | $ | 24,451,724 | (1) | % | |||||||||
| Period end deposit and customer funding composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| Noninterest-bearing demand | $ | 8,504,077 | $ | 8,170,105 | 4 | % | $ | 7,999,143 | $ | 8,496,194 | $ | 7,661,728 | 11 | % | |||||||||
| Savings | 4,410,198 | 4,278,453 | 3 | % | 4,182,651 | 4,032,830 | 3,650,085 | 21 | % | ||||||||||||||
| Interest-bearing demand | 7,019,782 | 6,407,844 | 10 | % | 5,969,285 | 5,748,353 | 6,090,869 | 15 | % | ||||||||||||||
| Money market | 7,185,111 | 7,583,978 | (5) | % | 7,640,825 | 7,838,437 | 7,322,769 | (2) | % | ||||||||||||||
| Time deposits | 1,347,262 | 1,410,886 | (5) | % | 1,472,395 | 1,561,352 | 1,757,030 | (23) | % | ||||||||||||||
| Total deposits | 28,466,430 | 27,851,266 | 2 | % | 27,264,299 | 27,677,166 | 26,482,481 | 7 | % | ||||||||||||||
Customer funding(a) | 354,142 | 322,081 | 10 | % | 226,160 | 182,228 | 245,247 | 44 | % | ||||||||||||||
| Total deposits and customer funding | $ | 28,820,572 | $ | 28,173,348 | 2 | % | $ | 27,490,459 | $ | 27,859,394 | $ | 26,727,727 | 8 | % | |||||||||
Network transaction deposits(b) | $ | 766,965 | $ | 929,174 | (17) | % | $ | 871,603 | $ | 1,054,634 | $ | 1,197,093 | (36) | % | |||||||||
| Net deposits and customer funding (Total deposits and customer funding, excluding network transaction deposits) | $ | 28,053,607 | $ | 27,244,174 | 3 | % | $ | 26,618,856 | $ | 26,804,761 | $ | 25,530,634 | 10 | % | |||||||||
| Quarter average loan composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| PPP Loans | $ | 115,074 | $ | 275,414 | (58) | % | $ | 701,440 | $ | 806,699 | $ | 929,859 | (88) | % | |||||||||
| Asset-based lending | 125,507 | 99,463 | 26 | % | 121,153 | 137,862 | 126,202 | (1) | % | ||||||||||||||
| Commercial and industrial | 7,816,260 | 7,733,148 | 1 | % | 7,437,726 | 7,493,413 | 7,482,983 | 4 | % | ||||||||||||||
| Commercial real estate—owner occupied | 899,536 | 876,047 | 3 | % | 878,746 | 906,027 | 904,565 | (1) | % | ||||||||||||||
| Commercial and business lending | 8,956,378 | 8,984,072 | — | % | 9,139,064 | 9,344,000 | 9,443,609 | (5) | % | ||||||||||||||
| Commercial real estate—investor | 4,304,579 | 4,297,783 | — | % | 4,321,109 | 4,303,365 | 4,289,703 | — | % | ||||||||||||||
| Real estate construction | 1,829,470 | 1,862,458 | (2) | % | 1,838,619 | 1,867,836 | 1,867,919 | (2) | % | ||||||||||||||
| Commercial real estate lending | 6,134,049 | 6,160,241 | — | % | 6,159,728 | 6,171,202 | 6,157,622 | — | % | ||||||||||||||
| Total commercial | 15,090,427 | 15,144,314 | — | % | 15,298,792 | 15,515,202 | 15,601,230 | (3) | % | ||||||||||||||
| Residential mortgage | 7,751,337 | 7,817,737 | (1) | % | 7,861,139 | 7,962,691 | 8,029,585 | (3) | % | ||||||||||||||
| Home equity | 600,963 | 620,601 | (3) | % | 641,438 | 680,738 | 736,059 | (18) | % | ||||||||||||||
| Other consumer | 299,406 | 294,160 | 2 | % | 288,786 | 294,528 | 302,995 | (1) | % | ||||||||||||||
| Auto finance | 53,120 | 7,144 | N/M | 8,458 | 10,190 | 11,968 | N/M | ||||||||||||||||
| Total consumer | 8,704,826 | 8,739,643 | — | % | 8,799,822 | 8,948,147 | 9,080,607 | (4) | % | ||||||||||||||
Total loans(c) | $ | 23,795,253 | $ | 23,883,957 | — | % | $ | 24,098,614 | $ | 24,463,349 | $ | 24,681,837 | (4) | % | |||||||||
| Quarter average deposit composition | Dec 31, 2021 | Sep 30, 2021 | Seql Qtr % Change | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Comp Qtr % Change | ||||||||||||||||
| Noninterest-bearing demand | $ | 8,416,525 | $ | 8,141,723 | 3 | % | $ | 8,069,851 | $ | 7,666,561 | $ | 7,677,003 | 10 | % | |||||||||
| Savings | 4,367,233 | 4,248,493 | 3 | % | 4,121,553 | 3,810,321 | 3,628,458 | 20 | % | ||||||||||||||
| Interest-bearing demand | 6,506,438 | 6,344,504 | 3 | % | 5,879,173 | 5,713,270 | 5,739,983 | 13 | % | ||||||||||||||
| Money market | 6,892,803 | 7,011,075 | (2) | % | 6,981,482 | 6,875,730 | 6,539,583 | 5 | % | ||||||||||||||
| Network transaction deposits | 838,255 | 893,991 | (6) | % | 908,869 | 1,080,109 | 1,265,748 | (34) | % | ||||||||||||||
| Time deposits | 1,381,092 | 1,434,588 | (4) | % | 1,509,705 | 1,658,568 | 1,888,074 | (27) | % | ||||||||||||||
| Total deposits | $ | 28,402,345 | $ | 28,074,374 | 1 | % | $ | 27,470,633 | $ | 26,804,559 | $ | 26,738,850 | 6 | % | |||||||||
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)Nonaccrual loans and loans held for sale have been included in the average balances.
9
| Associated Banc-Corp Non-GAAP Financial Measures Reconciliation | YTD | YTD | |||||||||||||||||||||
| ($ in millions, except per share data) | Dec 2021 | Dec 2020 | 4Q21 | 3Q21 | 2Q21 | 1Q21 | 4Q20 | ||||||||||||||||
Tangible common equity reconciliation(a) | |||||||||||||||||||||||
| Common equity | $ | 3,832 | $ | 3,802 | $ | 3,820 | $ | 3,774 | $ | 3,737 | |||||||||||||
| Goodwill and other intangible assets, net | (1,163) | (1,165) | (1,167) | (1,170) | (1,178) | ||||||||||||||||||
| Tangible common equity | $ | 2,669 | $ | 2,636 | $ | 2,652 | $ | 2,605 | $ | 2,560 | |||||||||||||
Tangible assets reconciliation(a) | |||||||||||||||||||||||
| Total assets | $ | 35,104 | $ | 34,440 | $ | 34,153 | $ | 34,575 | $ | 33,420 | |||||||||||||
| Goodwill and other intangible assets, net | (1,163) | (1,165) | (1,167) | (1,170) | (1,178) | ||||||||||||||||||
| Tangible assets | $ | 33,941 | $ | 33,274 | $ | 32,985 | $ | 33,406 | $ | 32,242 | |||||||||||||
Average tangible common equity and average common equity tier 1 reconciliation(a) | |||||||||||||||||||||||
| Common equity | $ | 3,789 | $ | 3,633 | $ | 3,811 | $ | 3,807 | $ | 3,788 | $ | 3,750 | $ | 3,700 | |||||||||
| Goodwill and other intangible assets, net | (1,169) | (1,228) | (1,164) | (1,167) | (1,169) | (1,175) | (1,178) | ||||||||||||||||
| Tangible common equity | 2,621 | 2,406 | 2,646 | 2,640 | 2,619 | 2,576 | 2,522 | ||||||||||||||||
| Modified CECL transitional amount | 102 | 115 | 91 | 97 | 106 | 116 | 123 | ||||||||||||||||
| Accumulated other comprehensive loss (income) | 1 | 3 | 19 | (5) | (3) | (5) | (4) | ||||||||||||||||
| Deferred tax assets (liabilities), net | 40 | 44 | 40 | 40 | 40 | 41 | 42 | ||||||||||||||||
| Average common equity tier 1 | $ | 2,764 | $ | 2,567 | $ | 2,795 | $ | 2,772 | $ | 2,762 | $ | 2,727 | $ | 2,683 | |||||||||
Average tangible assets reconciliation(a) | |||||||||||||||||||||||
| Total assets | $ | 34,464 | $ | 34,265 | $ | 35,016 | $ | 34,759 | $ | 34,380 | $ | 33,684 | $ | 34,076 | |||||||||
| Goodwill and other intangible assets, net | (1,169) | (1,228) | (1,164) | (1,167) | (1,169) | (1,175) | (1,178) | ||||||||||||||||
| Tangible assets | $ | 33,296 | $ | 33,038 | $ | 33,852 | $ | 33,593 | $ | 33,211 | $ | 32,510 | $ | 32,898 | |||||||||
Selected trend information(b) | |||||||||||||||||||||||
| Wealth management fees | $ | 90 | $ | 85 | $ | 23 | $ | 22 | $ | 23 | $ | 22 | $ | 22 | |||||||||
| Service charges and deposit account fees | 64 | 56 | 17 | 17 | 16 | 15 | 15 | ||||||||||||||||
| Card-based fees | 43 | 39 | 11 | 11 | 11 | 10 | 10 | ||||||||||||||||
| Other fee-based revenue | 17 | 19 | 4 | 4 | 4 | 5 | 5 | ||||||||||||||||
| Fee-based revenue | 214 | 199 | 55 | 54 | 53 | 52 | 52 | ||||||||||||||||
| Gain on sale of ABRC | — | 163 | — | — | — | — | — | ||||||||||||||||
Insurance commissions and fees(c) | — | 45 | — | — | — | — | — | ||||||||||||||||
| Other | 118 | 106 | 26 | 28 | 20 | 44 | 33 | ||||||||||||||||
| Total noninterest income | $ | 332 | $ | 514 | $ | 82 | $ | 82 | $ | 73 | $ | 95 | $ | 86 | |||||||||
Pre-tax pre-provision income(d) | |||||||||||||||||||||||
| Income before income taxes | $ | 436 | $ | 327 | $ | 92 | $ | 112 | $ | 113 | $ | 119 | $ | 84 | |||||||||
| Provision for credit losses | (88) | 174 | (6) | (24) | (35) | (23) | 17 | ||||||||||||||||
| Pre-tax pre-provision income | $ | 348 | $ | 501 | $ | 86 | $ | 88 | $ | 78 | $ | 96 | $ | 101 | |||||||||
Selected equity and performance ratios(a)(e) | |||||||||||||||||||||||
| Tangible common equity / tangible assets | 7.86 | % | 7.92 | % | 8.04 | % | 7.80 | % | 7.94 | % | |||||||||||||
| Return on average equity | 8.60 | % | 7.78 | % | 7.62 | % | 8.63 | % | 8.84 | % | 9.32 | % | 6.58 | % | |||||||||
| Return on average tangible common equity | 12.74 | % | 11.99 | % | 11.09 | % | 12.72 | % | 13.19 | % | 14.03 | % | 9.75 | % | |||||||||
| Return on average common equity Tier 1 | 12.08 | % | 11.23 | % | 10.50 | % | 12.11 | % | 12.51 | % | 13.25 | % | 9.16 | % | |||||||||
| Return on average tangible assets | 1.05 | % | 0.93 | % | 0.90 | % | 1.05 | % | 1.10 | % | 1.18 | % | 0.81 | % | |||||||||
| Average stockholders' equity / average assets | 11.84 | % | 11.51 | % | 11.43 | % | 11.74 | % | 12.01 | % | 12.18 | % | 11.90 | % | |||||||||
Efficiency ratio reconciliation(f) | |||||||||||||||||||||||
| Federal Reserve efficiency ratio | 66.33 | % | 61.76 | % | 67.36 | % | 65.43 | % | 66.81 | % | 65.74 | % | 59.68 | % | |||||||||
| Fully tax-equivalent adjustment | (1.04) | % | (0.77) | % | (1.10) | % | (1.01) | % | (1.07) | % | (0.97) | % | (0.84) | % | |||||||||
| Other intangible amortization | (0.84) | % | (0.80) | % | (0.82) | % | (0.83) | % | (0.87) | % | (0.82) | % | (0.82) | % | |||||||||
| Fully tax-equivalent efficiency ratio | 64.47 | % | 60.20 | % | 65.46 | % | 63.61 | % | 64.88 | % | 63.96 | % | 58.02 | % | |||||||||
| Provision for unfunded commitments adjustment | 0.74 | % | (0.55) | % | 0.55 | % | 1.48 | % | 2.14 | % | (1.09) | % | 3.42 | % | |||||||||
| Asset gains (losses), net adjustment | 0.67 | % | 8.20 | % | 0.24 | % | 1.29 | % | — | % | 1.12 | % | (0.30) | % | |||||||||
| Acquisitions, branch sales, and initiatives | (0.53) | % | (5.08) | % | (1.43) | % | (0.91) | % | 0.01 | % | 0.22 | % | 1.68 | % | |||||||||
| Adjusted efficiency ratio | 65.36 | % | 62.76 | % | 64.82 | % | 65.46 | % | 67.02 | % | 64.21 | % | 62.83 | % | |||||||||
Numbers may not sum due to rounding.
(a)The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.
(b)These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation’s results of operations.
(c)The sale of ABRC in June 2020, largely eliminated insurance commissions and fees revenue.
(d)Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings and provide greater understanding of ongoing operations and enhanced comparability of results with prior periods.
(e)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.
(f)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 excludes the provision for unfunded commitments, other intangible amortization, acquisition related costs, and announced initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net, asset gains (losses), net, and gain on sale of branches, net. 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 acquisition related costs, provision for unfunded commitments, asset gains (losses), net, branch sales, and announced initiatives.
10
Fourth Quarter 2021 Earnings Presentation JANUARY 20, 2022 Exhibit 99.2
1 Forward-Looking Statements Important note regarding forward-looking statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “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 Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference. Trademarks: All trademarks, service marks, and trade names referenced in this material are official trademarks and the property of their respective owners. Presentation: Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These non-GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance with GAAP. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation.
2 Expanding Balance Sheet and Income Trends ▪ Annualized EoP QoQ growth of: ▪ 10% in total loans ▪ 9% in total deposits ▪ EoP securities/total assets of 19%, up from 17% in 3Q ▪ 7% annualized expansion in net interest income Contributing to Strong Profitability and Capital Trends ▪ Repurchased $25 million of common stock ▪ Increasing tangible book value per share; $17.87 as of 12/31/21 ▪ ROATCE of 11.09% ▪ Full-year, fully-diluted earnings per common share of $2.18 Improving Credit Dynamics ▪ Negative provision of $6 million ▪ Net charge offs of $6 million ▪ Net reserve release of $12 million ▪ Nonaccrual loans down 3% QoQ ▪ Appropriately reserved with ACLL to loan ratio of 1.32% as of 12/31/21 ▪ Full-year total noninterest expense down YoY ▪ Full-year total noninterest expense to average assets of 2.06%, down 20 bps from 2020 ▪ 4Q results include facilities exit costs and initiative-related write- downs totaling $4 million, which are expected to have a positive effect on the expense run-rate 4Q 2021 results reflect strong loan growth, deposit growth and expanding revenues Associated Banc-Corp Reports Fourth Quarter 2021 Net Income Available to Common Equity of $74 Million, or $0.49 per Common Share Fourth Quarter 2021 Update Disciplined Expense Management
3 Commercial Lending Update ▪ Annualized Total Commercial1 loan growth of 13% QoQ EoP ▪ Asset-Based Lending (ABL) vertical expanded with new focus ▪ Mortgage Warehouse declines were consistent with diminished home refinance activity ▪ CRE Construction reflects seasonal factors ▪ Strategic exit of the majority of our Oil & Gas portfolio with minimal discount ▪ PPP portfolio continued to pay down as expected We saw a resurgence in general commercial lending in 4Q and our initiatives grew strongly as well Fourth Quarter Loan Update Runoff Portfolio Trends $(122) $(116) $(51) $(26) $(24) $(13) $7 $67 $72 $88 $122 $136 $169 $292 Mortgage Warehouse Home Equity and Other Cons. CRE Investor Power & Utilities General Commercial REIT ($ in millions) PPP Credit Cards EoP Loan Change (3Q 2021 to 4Q 2021) CRE Construction Auto Finance ▪ Added nearly $140 million in new Auto balances after launching vertical on September 30th ▪ EoP consumer credit card balances increased 6% QoQ Consumer Lending Update Oil & Gas Commercial & Business Lending Commercial Real Estate Consumer Lending Runoff Portfolios Asset-Based Lending 1 Includes all Commercial & Business Lending and Commercial Real Estate loans. See Total Commercial on page 9 of press release tables. All Other Specialized Residential Mortgage
4 $1.3 $1.3 $1.2 $1.0 $1.0 $7.5 $8.3 $8.1 $7.9 $7.6 $4.8 $5.1 $5.2 $6.2 $6.2 $0.6 $0.7 $0.5 $0.3 $0.8 * $6.6 $7.6 $7.8 $8.3 $9.3 $20.8 $22.9 $22.8 $24.5 $24.2 2017 2018 2019 2020 2021 Annual Loan Trends General commercial growth even as we continued to reduce our PPP and Oil & Gas exposures EoP Annual Loan Trends ($ in billions) Commercial & Business Lending Commercial Real Estate Residential Mortgage Home Equity & Other Consumer PPP EoP Loan Change (4Q 2020 to 4Q 2021) ($ in millions) $(311) $(244) $(112) $(31) $20 $42 $106 $207 $309 Power & Utilities Oil & Gas Mortgage Warehouse Residential Mortgage CRE Construction REIT Home Equity & Other Cons. PPP CRE Investor General Commercial $489 Oil & Gas $(701) * As of 12/31/2021, legacy Oil & Gas and PPP portfolios were down to $52 million and $66 million, respectively All Other Specialized
5 29.2 31.4 31.5 31.4 30.4 31.8 31.9 32.8 34.7 41.7 40.7 40.9 40.6 40.0 40.3 38.2 37.4 39.8 Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2021 Historical Avg. Loan Trend Updates Line utilization rebounded and new construction commitments grew strongly Line Utilization1 (%) 1 Outstanding Balances / Total Exposure of regional Commercial Banking revolving credit lines. Monthly historical average reflects 2017, 2018 and 2019 data. EoP CRE Construction Loan Exposures ($ in billions) $3.5 $3.5 $3.6 $3.8 $4.0 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 +5% QoQ% %
6 New Asset-Based Lending + Equipment Finance Total Commercial (including legacy Asset- Based Lending) Auto Finance Strategic Initiative Updates $7 $143 $1,350 $2,500 3Q 2021 4Q 2021 YE2022 Target YE2023 Target $0 $67 $300 $600 3Q 2021 4Q 2021 YE2022 Target YE2023 Target $15,120 $15,550 $16,000 $17,000 3Q 2021 4Q 2021 YE2022 Target YE2023 Target EoP Balance Trends ($ in millions)
7 Strategic Initiative Updates1 We announced a new growth focused and digital forward vision for Associated on September 9, 2021 Expanding our Lending Capabilities Growing our Core Businesses Investing in our Digital Transformation ▪ Auto Finance: Starting strong with 665 active dealers across 13 states. Average FICO score of 756 and 82% average LTV on initial loans. ▪ Asset-Based Lending: Closed first new deal in November 2021 ▪ Equipment Finance: Currently building active pipeline, recruiting additional team members Optimizing Capital Proactively ▪ Continuing to ramp up staff in Commercial and Small Business Banking, on track to hire ~15-20 bankers by year-end 2022 ▪ Established Commercial Real Estate lending presence in Houston, TX ▪ On track to pilot new digital platform with open architecture, improved user experience and customization in 2Q 2022 ▪ Modernization efforts focusing on “hollowing out” our core ▪ Moving toward “built for purpose” systems with robust data integration ▪ Authorized to repurchase up to $100 million in common stock ▪ Repurchased $25 million of common stock during 4Q ▪ Increased the FY2021 common stock dividend paid by 6% YoY 1 All updates as of or for the period ended December 31, 2021.
8 Net Interest Income and Yield Trends NII and NIM Trends 2.88 2.91 2.87 2.89 2.91 2.69 2.57 2.56 2.47 2.44 3.00 2.79 2.82 2.83 2.84 1.94 1.81 1.66 1.57 1.76 0.43 0.40 0.36 0.30 0.27 0.07 0.07 0.06 0.07 0.05 0.97 0.74 0.51 0.38 0.32 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Average Yields (%) ($ in millions) 4Q 2021 NII and NIM both grew QoQ, driven by decreasing liability costs and expansion in securities Total Residential Mortgage Loans Commercial and Business Lending Loans excluding PPP Commercial Real Estate Loans Total Interest- Bearing Liabilities Time Deposits Quarterly Net Interest Income Total Interest-Bearing Deposits excluding Time 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Investments and Other Quarterly Net Interest Margin $188 $176 $180 $184 $187 2.49% 2.39% 2.37% 2.38% 2.40% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021
9 $3.2 $3.0 $3.2 $3.3 $4.1 $1.9 $1.9 $2.0 $2.0 $2.3 $1.0 $1.0 $1.8 $2.2 $1.6 $6.1 $5.9 $6.9 $7.5 $7.9 1.94% 1.81% 1.66% 1.57% 1.76% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 15% 16% 16% 17% 19% 2% 6% 5% 5% 3% 18% 21% 21% 22% 22% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Cash and Investment Securities Portfolio Average Investments and Yield Trends EoP Securities + Cash / Total Assets We are on track to rebuild the investment portfolio to 20% to 22% of total assets by year-end 2022 ($ in billions) ▪ During 4Q, we began deploying our excess liquidity into investment assets and will remain opportunistic throughout 2022 ▪ We expect our overall reinvestment portfolio yields to be 2% or better; as compared to our 4Q 2021 blended investment yield of 1.76% Tax-Exempt Securities Taxable Securities Other Short-Term Investments Blended Investments Yield Securities Cash
10 $1.3 $1.1 $0.9 $0.9 $0.8 $1.9 $1.7 $1.5 $1.4 $1.4 $6.5 $6.9 $7.0 $7.0 $6.9 $3.6 $3.8 $4.1 $4.2 $4.4 $5.7 $5.7 $5.9 $6.3 $6.5 $7.7 $7.7 $8.1 $8.1 $8.4 $26.7 $26.8 $27.5 $28.1 $28.4 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Quarterly Funding Trends ($ in billions) Average Quarterly Deposits Time Deposits Savings Money Market EoP Wholesale Funding Trends Network Transaction Deposits We continue to improve the mix of low-cost, core customer funding and reduce our higher-cost liabilities Noninterest-Bearing Demand Interest-Bearing Demand ($ in billions) EoP Low-Cost Deposit Mix Trends 14% 15% 15% 15% 15% 21% 20% 21% 22% 23% 29% 31% 29% 29% 30% 64% 65% 66% 67% 68% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FHLB Advances Other Long-Term Funding $1.6 $1.6 $1.6 $1.6 $1.6 $1.2 $1.1 $0.9 $0.9 $0.8 $0.5 $0.5 $0.5 $0.2 $0.2 $3.4 $3.2 $3.0 $2.8 $2.6 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021
11 $3.1 $2.1 $1.9 $1.4 $0.9 $2.0 $2.8 $3.1 $2.3 $1.5 $6.3 $7.3 $7.0 $6.5 $6.9 $1.5 $1.9 $2.4 $3.3 $4.1 $4.0 $4.8 $5.1 $5.6 $6.1 $5.0 $5.2 $5.2 $6.9 $8.1 $21.9 $24.1 $24.7 $26.0 $27.7 2017 2018 2019 2020 2021 Annual Deposit Portfolio Trends ($ in billions) Average Annual Deposits Time Deposits Savings Money Market EoP Deposit Change (4Q 2020 to 4Q 2021) Network Transaction Deposits Low-cost core deposits continued to trend up while we reduced reliance on high-cost fund sources Noninterest-Bearing Demand Interest-Bearing Demand ($ in millions) $(430) $(410) $204 $760 $842 Interest-Bearing Demand Noninterest-Bearing Demand Savings Money Market Time Deposits Network Transaction Deposits $1,018
12 $15 $15 $9 $8 $3 $15 $24 $8 $11 $8 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $52 $52 $53 $54 $55 $15 $24 $8 $11 $8 $6 $8 $6 $7 $10 $13 $12 $6 $10 $9 $86 $95 $73 $82 $82 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Noninterest Income Trends Wealth Management & Capital Markets FeesNoninterest Income Trends ($ in millions) ($ in millions) ($ in millions) Net Mortgage Banking Income Strong growth in capital markets activity offset moderation in net mortgage banking income Fee-Based Revenue1 Capital Markets, net Mortgage Banking, net Other Net Mortgage Banking IncomeGross Gains2 $22 $22 $23 $22 $23 $6 $8 $6 $7 $10 $28 $31 $28 $29 $32 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1 A non-GAAP financial measure. Please refer to the Appendix for a reconciliation of fee-based revenue to noninterest income. 2 Mortgage banking gains and fair value adjustments on loans held for sale. Capital Markets FeesWealth Management Fees
13 $98 $104 $107 $108 $108 $75 $71 $67 $68 $73 $2 $1 $173 $175 $174 $178 $182 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Noninterest Expense Trends Adjusted Efficiency Ratio2 (%)Noninterest Expense Trends 1 Other expenses are primarily comprised of Technology, Occupancy, Equipment, Business Development, Legal and Professional, and FDIC Assessment costs. 2 A non-GAAP financial measure. Please refer to the Appendix for a reconciliation of the adjusted efficiency ratio to the Federal Reserve efficiency ratio. 3 Annualized. ($ in millions) Noninterest expense up only 2% QoQ including impact of new initiatives and $17 minimum wage Personnel Expense Other1 Facilities-Related Exit Costs Federal Reserve Efficiency Ratio 62.8 64.2 67.0 65.5 64.8 59.7 65.7 66.8 65.4 67.4 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Adjusted Efficiency Ratio Noninterest Expense / Average Assets3 (%) 2.02 2.11 2.04 2.03 2.06 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021
14 4Q 2021 Pre-Tax Pre-Provision Income1 Walk-Forward 4Q PTPP income remained relatively flat QoQ, with NII expansion offset by initiative-related charges 3Q PTPP Income Net Interest Income Facilities & Initiative-Related Items2 4Q Pre-Tax Income ($ in millions) $86 1 A non-GAAP measure. Please refer to the appendix for a reconciliation of pre-tax pre-provision income to income before income taxes. Given the adoption of CECL and the volatility of provision during the pandemic, we believe pre-tax pre-provision income provides meaningful disclosure to investors regarding the Company’s operations. 2 Includes $3 million of technology write-downs reported as net asset losses and $1 million of facilities-related exit costs. $(6) $92 4Q PTPP Income 4Q Provision3Q Pre-Tax Income 3Q Provision Technology Expense
15 7.94 10.45 11.81 14.02 7.86 10.31 11.02 13.10 TCE Ratio Common Equity Tier 1 Capital Tier 1 Capital Total Capital 1 Tangible common equity / tangible assets. This is a non-GAAP financial measure. See Appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. Capital Ratios (%) 4Q 2020 Tangible Book Value has increased 7% from 4Q 2020 through 4Q 2021 4Q 2021 Strong Capital Position Tangible Book Value / Share $16.67 $16.95 $17.35 $17.58 $17.87 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1
16 4Q 2021 ACLL ▪ Allowance for credit losses on loans (ACLL) decreased $12 million QoQ ▪ Net charge offs of only $6 million; or 0.11% of average loans ▪ 4Q 2021 negative provision of $6 million, compared to negative $24 million in 3Q 2021 and provision of $17 million in 4Q 2020 ▪ CECL forward looking assumptions based on Moody’s December 2021 Baseline forecast 1 Includes funded and unfunded reserve for loans, excludes reserve for HTM securities. ($ in thousands) ACLL / Total Loans (%) Net reserve release of $12 million, reflecting strong dynamics throughout the portfolio Allowance Update 0.98 1.55 1.62 1.73 1.77 1.76 1.67 1.52 1.41 1.32 ACLL 1 ACLL 1 / Loans ACLL 1 ACLL 1 / Loans ACLL 1 ACLL 1 / Loans Loan Category C&BL (excl. Oil & Gas and PPP Loans) 92,203$ 1.19% 103,370$ 1.20% 113,504$ 1.22% C&BL Oil & Gas 68,687 14.08% 17,475$ 10.06% 6,442$ 12.42% PPP Loans - - 125$ 0.07% 51$ 0.08% CRE - Investor 43,331 1.14% 82,182$ 1.91% 73,739$ 1.68% CRE - Construction 58,261 4.10% 56,441$ 3.08% 53,229$ 2.94% Residential Mortgage 50,175 0.62% 41,620$ 0.55% 40,787$ 0.54% Other Consumer 41,768 3.47% 31,059$ 3.41% 32,038$ 3.08% Total 354,425$ 1.55% 332,273$ 1.41% 319,791$ 1.32% Total (excl. PPP Loans) 354,425$ 1.55% 332,147$ 1.42% 319,739$ 1.32% CECL Day 1 9/30/2021 12/31/2021
17 Credit Quality Trends $97 $72 $66 $65 $63 $37 $32 $18 $8 $6 $77 $59 $63 $62 $61 $211 $163 $147 $135 $130 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $52 $41 $42 $44 $43 $37 $15 $9 $30 $15 $89 $56 $51 $75 $58 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Credit metrics largely continued to improve during 4Q 2021 ($ in millions) ($ in millions) ($ in millions) 1 Please see Appendix for more detail on our Key COVID Commercial Loan Exposures. Restructured Loans & Delinquencies Nonaccrual LoansKey COVID Commercial Loan Outstandings1 Net Charge Offs and Provision Total Restructured Loans (accruing) Accruing Loans 30-89 Days Past Due Oil & Gas All other loansOther COVID1 $792 $488 $458 $492 $571 $1,219 $1,131 $1,064 $990 $814 $2,011 $1,619 $1,522 $1,482 $1,386 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 ($ in millions) $28 $5 $5 $8 $6 $17 $(23) $(35) $(24) $(6) 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Commercial & Business Lending CRE Total Net Charge Offs Provision for Credit Losses
18 Balance Sheet Management* ▪ Auto Finance loan growth of $1.2+ billion ▪ Total Commercial loan growth of $750 million to $1 billion (including ABL and Equipment) ▪ Target investments / total assets ratio of 20% to 22% Net Interest Income & Noninterest Income ▪ Net interest income of $800+ million ▪ Noninterest income of $300+ million ▪ Total of $1.1+ billion Expense Management ▪ Approximately $725 million to $740 million of noninterest expense ▪ Effective tax rate of 19% to 21% Capital & Credit Management ▪ Target TCE at or above 7.5%; Target CET1 at or above 9.5% ▪ We expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality 2022 Full-Year Outlook FY 2022 Guidance * Growth to End of Period as compared to 12/31/2021.
19 Growth Focused Higher ReturnsDigital Forward Associated: Capitalizing on our Momentum
Appendix
21 Total Loans Outstanding Balances as of December 31, 2021 Well-diversified $24 billion loan portfolio ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 3 Includes Oil & Gas loans. 12/31/2021 1 % of Total Loans 12/31/2021 1 % of Total Loans C&BL (by NAICS 2 ) CRE (by property type) Utilities 1,808$ 7.5% Multi-Family 2,022$ 8.3% Wholesale/Manufacturing 1,737 7.2% Office/Mixed 1,262 5.2% Real Estate (includes REITs) 1,486 6.1% Industrial 1,227 5.1% Mortgage Warehouse 1,181 4.9% Retail 686 2.8% Finance & Insurance 462 1.9% Single Family Construction 458 1.9% Construction 379 1.6% Hotel/Motel 225 0.9% Retail Trade 343 1.4% Land 95 0.4% Health Care and Social Assistance 333 1.4% Mobile Home Parks 44 0.2% Rental and Leasing Services 255 1.1% Parking Lots and Garages 37 0.2% Professional, Scientific, and Tech. Serv. 235 1.0% Other 137 0.6% Transportation and Warehousing 177 0.7% Total CRE 6,194$ 25.6% Waste Management 155 0.6% Accommodation and Food Services 140 0.6% Consumer Mining 3 84 0.3% Residential Mortgage 7,567$ 31.2% Information 79 0.3% Home Equity 596 2.5% Management of Companies & Enterprises 78 0.3% Auto Loans 143 0.6% Arts, Entertainment, and Recreation 77 0.3% Credit Cards 113 0.5% Financial Investments & Related Activities 74 0.3% Student Loans 101 0.4% Educational Services 33 0.1% Other Consumer 87$ 0.4% Public Administration 20 0.1% Total Consumer 8,608$ 35.5% Agriculture, Forestry, Fishing and Hunting 14 0.1% Other 274 1.1% Total C&BL 9,424$ 38.9% Total Loans 24,225$ 100.0%
22 1 As of 12/31/2021. Excludes $52 million Oil & Gas portfolio. 2 C&BL excludes grocers, convenience stores, vehicle dealers, auto parts and tire dealers, direct and mail order retailers, and building material dealers; CRE excludes properties primarily anchored by grocers, self-storage facilities, and vehicle dealers. Key COVID commercial loan exposures are spread across multiple industries without large concentrations ($ in millions) Key COVID Commercial Loan Exposures1 C&BL Utilization CRE Utilization Total % of total loans Retailers/Shopping Centers 2 Retailers 85.1$ 49% 483.6$ 90% 568.7$ 2.35% Retail REITs 217.6 54% 43.7 100% 261.2 1.08% Subtotal 302.7 52% 527.3 90% 830.0 3.43% Hotels, Amusement & Related Hotels 2.1 70% 225.3 98% 227.4 0.94% Parking Lots and Garages 19.6 60% 35.5 100% 55.1 0.23% Casinos 50.2 100% - - 50.2 0.21% Recreation & Entertainment 47.0 46% 5.1 94% 52.1 0.21% Movie Theaters 5.4 19% - - 5.4 0.02% Subtotal 124.2 57% 265.9 98% 390.1 1.61% Restaurants Full-Service 58.6 96% 15.2 69% 73.8 0.30% Limited-Service & Other 18.3 87% 5.9 42% 24.2 0.10% Subtotal 76.9 94% 21.1 58% 98.0 0.40% Transportation & Other Transportation Services 67.3 82% 0.2 100% 67.5 0.28% Subtotal 67.3 82% 0.2 100% 67.5 0.28% Total 571.1$ 59% 814.4$ 91% 1,385.5$ 5.72%
23 Manufacturing & Wholesale Trade 18% Real Estate 16% Power & Utilities 19% Mortgage Warehouse 13% 1 Excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 Principally reflects the Oil & Gas portfolio. C&BL by Geography $9.4 billion CRE by Geography $6.2 billion Multi-Family 33% Retail 11% Office / Mixed Use 20% Industrial 20% 1-4 Family Construction 7%Hotel / Motel 4% Other 5% Wind 44% Natural Gas 31% Solar 20% Transmission, Control and Distribution 2% Other 3% Wisconsin 24% Illinois 15% Minnesota 7% Texas 4% Other Midwest 12% Other 39% Wisconsin 27% Illinois 14% Minnesota 10% Other Midwest2 22% Texas 7%Other 20% Total Loans1 Wisconsin 29% Illinois 23% Minnesota 10% Other Midwest 14% Texas 3% Other 21% C&BL by Industry $9.4 billion Power & Utilities Lending $1.8 billion CRE by Property Type $6.2 billion 3 2 2 Loan Stratification Outstandings as of December 31, 2021
24 Reconciliation and Definitions of Non-GAAP Items ($ in millions) 1 These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation’s results of operations. 2 This is a non-GAAP financial measure. 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 greater understanding of ongoing operations, and enhance comparability of results with prior periods. Efficiency Ratio Reconciliation 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Federal Reserve efficiency ratio 59.68% 65.74% 66.81% 65.43% 67.36% Fully tax-equivalent adjustment (0.84)% (0.97)% (1.07)% (1.01)% (1.10)% Other intangible amortization (0.82)% (0.82)% (0.87)% (0.83)% (0.82)% Fully tax-equivalent efficiency ratio 58.02% 63.96% 64.88% 63.61% 65.46% Provision for unfunded commitments adjustment 3.42% (1.09)% 2.14% 1.48% 0.55% Asset gains (losses), net adjustment (0.30)% 1.12% --% 1.29% 0.24% Acquisitions, branch sales, and initiatives 1.68% 0.22% 0.01% (0.91)% (1.43)% Adjusted efficiency ratio2 62.83% 64.21% 67.02% 65.46% 64.82% 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 excludes the provision for unfunded commitments, other intangible amortization, acquisition related costs, and announced initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net, asset gains (losses), net, and gain on sale of branches, net. 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 acquisition related costs, provision for unfunded commitments, asset gains (losses), net, branch sales, and announced initiatives. Selected Trend Information1 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Wealth management fees $22 $22 $23 $22 $23 Service charges and deposit account fees 15 15 16 17 17 Card-based fees 10 10 11 11 11 Other fee-based revenue 5 5 4 4 4 Fee-based revenue 52 52 53 54 55 Gain on sale of ABRC - - - - - Insurance commissions and fees - - - - - Other 33 44 20 28 26 Total noninterest income $86 $95 $73 $82 $82
25 Reconciliation and Definitions of Non-GAAP Items ($ in millions) 1 This is a non-GAAP financial measure. 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 greater understanding of ongoing operations, and enhance comparability of results with prior periods. 2 The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. Pre-tax Pre-Provision Income Reconciliation1 3Q 2021 4Q 2021 Pre-tax pre-provision income Income (loss) before income taxes $112 $92 Provision for credit losses (24) (6) Pre-tax pre-provision income $88 $86 Tangible Common Equity and Tangible Assets Reconciliation2 4Q 2020 4Q 2021 Common equity $3,737 $3,832 Goodwill and other intangible assets, net (1,178) (1,163) Tangible common equity $2,560 $2,669 Total assets $33,420 $35,104 Goodwill and other intangible assets, net (1,178) (1,163) Tangible assets $32,242 $33,941