Associated Banc-Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Associated Banc-Corp filed its Q1 2024 10-Q, detailing financial positions and equity changes.</b>

AI Summary

ASSOCIATED BANC-CORP (ASBA) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Associated Banc-Corp reported financial results for the quarter ended March 31, 2024. The filing includes data on preferred stock, common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income. Information on treasury stock, including board authorized purchase programs and performance-based RSAs, is detailed. Fair value inputs for Level 1, Level 2, and Level 3 assets are provided as of March 31, 2024, and December 31, 2023. The company's financial statements cover fiduciary and trust, deposit accounts, credit and debit cards, and other financial services.

Why It Matters

For investors and stakeholders tracking ASSOCIATED BANC-CORP, this filing contains several important signals. This 10-Q provides a snapshot of Associated Banc-Corp's financial health and equity structure as of the end of the first quarter of 2024. Investors can analyze changes in equity, fair value measurements, and segment performance to assess the company's financial trajectory and risk exposure.

Risk Assessment

Risk Level: medium — ASSOCIATED BANC-CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a publicly traded bank, which inherently carries market and regulatory risks common to the financial sector.

Analyst Insight

Monitor the company's equity structure and fair value inputs for insights into asset valuation and potential market sensitivities.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-04-30 — Filing Date (Filed as of date)
• 150,766,697 — Total Shares Outstanding (approx) (P3Y value)
• 2024-01-01 — Quarter Start Date (Reporting period start date)

Key Players & Entities

• ASSOCIATED BANC-CORP (company) — Filer name
• 0000007789 (company) — Central Index Key
• WI (company) — State of incorporation
• 433 MAIN STREET (company) — Business address street
• GREEN BAY (company) — Business address city
• 920-491-7500 (company) — Business phone
• 19770626 (company) — Date of former company name change
• XNYS (company) — Exchange ticker

FAQ

Risk Factors

• Financial Market Risks [high — financial]: The company is exposed to risks associated with fluctuations in interest rates, credit quality of borrowers, and overall economic conditions.
• Regulatory Compliance [high — regulatory]: As a financial institution, Associated Banc-Corp is subject to extensive regulation by federal and state authorities, which can impact operations and profitability.
• Operational Risks [medium — operational]: Risks include potential disruptions from cybersecurity threats, system failures, and the ability to attract and retain qualified personnel.

Key Dates

• 2024-03-31: Quarter End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-04-30: Filing Date — Date the 10-Q was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share ASB New York Stock Exchange
• $1,000 — Stock, Series E, liquidation preference $1,000 per share Series F Preferred Stock The
• $0.22 — 4,572 ) Cash dividends: Common stock, $0.22 per share — — — ( 33,527 ) — — ( 33,527
• $0.21 — 5,362 ) Cash dividends: Common stock, $0.21 per share — — — ( 32,013 ) — — ( 32,013

Filing Documents

• asb-20240331.htm (10-Q) — 5146KB
• asb03312024ex311.htm (EX-31.1) — 9KB
• asb03312024ex312.htm (EX-31.2) — 9KB
• asb03312024ex32.htm (EX-32) — 6KB
• 0000007789-24-000043.txt (&nbsp;) — 24891KB
• asb-20240331.xsd (EX-101.SCH) — 88KB
• asb-20240331_cal.xml (EX-101.CAL) — 156KB
• asb-20240331_def.xml (EX-101.DEF) — 680KB
• asb-20240331_lab.xml (EX-101.LAB) — 1126KB
• asb-20240331_pre.xml (EX-101.PRE) — 874KB
• asb-20240331_htm.xml (XML) — 6524KB

Financial Information

PART I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): 5 Consolidated Balance Sheets 5 Consolidated Statements of Income 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Changes in Stockholders' Equity 8 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 50

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 71

Controls and Procedures

Item 4. Controls and Procedures 72

Other Information

PART II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 73

Risk Factors

Item 1A. Risk Factors 73

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 73

Other Information

Item 5. Other Information 73

Exhibits

Item 6. Exhibits 74

Signatures

Signatures 75 2 ASSOCIATED BANC-CORP Commonly Used Terms The following listing provides a reference of common acronyms, abbreviations, and other defined terms used throughout the document: ACLL Allowance for Credit Losses on Loans AFS Available for Sale ALCO Asset / Liability Committee ASU Accounting Standards Update the Bank Associated Bank, National Association Basel III International framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity bp basis point(s) BTFP Bank Term Funding Program CDs Certificates of Deposit CDIs Core Deposit Intangibles CECL Current Expected Credit Losses CET1 Common Equity Tier 1 CFPB Consumer Financial Protection Bureau Corporation / our Associated Banc-Corp collectively with all of its subsidiaries and affiliates CRA Community Reinvestment Act CRE Commercial Real Estate EAR Earnings at Risk Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve Board of Governors of the Federal Reserve System FFELP Federal Family Education Loan Program FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FICO Fair Isaac Corporation, provider of a broad-based risk score to aid in credit decisions FNMA Federal National Mortgage Association FTEs Full-time equivalent employees FTP Funds Transfer Pricing GAAP Generally Accepted Accounting Principles GNMA Government National Mortgage Association GSE Government-Sponsored Enterprise HTM Held to Maturity LTV Loan-to-Value Moody's Moody's Investors Service MSRs Mortgage Servicing Rights MVE Market Value of Equity NAV Measured at fair value using Net Asset Value per share (or its equivalent) as a practical expedient Net Free Funds Noninterest-bearing sources of funds NPAs Nonperforming Assets OCI Other Comprehensive Income OREO Other Real Estate Owned Parent Company Associat

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements: ASSOCIATED BANC-CORP Consolidated Balance Sheets Mar 31, 2024 Dec 31, 2023 (In thousands, except share and per share data) (Unaudited) (Audited) Assets Cash and due from banks $ 429,859 $ 484,384 Interest-bearing deposits in other financial institutions 420,114 425,089 Federal funds sold and securities purchased under agreements to resell 1,610 14,350 AFS investment securities, at fair value 3,724,148 3,600,892 HTM investment securities, net, at amortized cost 3,832,967 3,860,160 Equity securities 19,571 41,651 FHLB and Federal Reserve Bank stocks, at cost 173,968 229,171 Residential loans held for sale 52,414 33,011 Commercial loans held for sale — 90,303 Loans 29,494,263 29,216,218 Allowance for loan losses ( 356,006 ) ( 351,094 ) Loans, net 29,138,257 28,865,124 Tax credit and other investments 255,252 258,067 Premises and equipment, net 367,618 372,978 Bank and corporate owned life insurance 685,089 682,649 Goodwill 1,104,992 1,104,992 Other intangible assets, net 38,268 40,471 Mortgage servicing rights, net 85,226 84,390 Interest receivable 167,092 169,569 Other assets 640,638 658,604 Total assets $ 41,137,084 $ 41,015,855 Liabilities and stockholders' equity Noninterest-bearing demand deposits $ 6,254,135 $ 6,119,956 Interest-bearing deposits 27,459,023 27,326,093 Total deposits 33,713,158 33,446,049 Short-term funding 765,671 326,780 FHLB advances 1,333,411 1,940,194 Other long-term funding 536,055 541,269 Allowance for unfunded commitments 31,776 34,776 Accrued expenses and other liabilities 588,341 552,814 Total liabilities $ 36,968,412 $ 36,841,882 Stockholders' equity Preferred equity $ 194,112 $ 194,112 Common equity Common stock $ 1,752 $ 1,752 Surplus 1,708,652 1,714,822 Retained earnings 2,991,571 2,946,805 Accumulated other comprehensive (loss) ( 209,881 ) ( 171,096 ) Treasury stock, at cost ( 517,533 ) ( 512,421 ) Total common equity 3,974,561 3,979,861 Total stockhold

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Income (Unaudited) Three Months Ended Mar 31, (In thousands, except per share data) 2024 2023 Interest income Interest and fees on loans $ 454,472 $ 391,320 Interest and dividends on investment securities Taxable 46,548 30,142 Tax-exempt 14,774 16,025 Other interest 7,595 5,329 Total interest income 523,388 442,817 Interest expense Interest on deposits 226,231 109,422 Interest on federal funds purchased and securities sold under agreements to repurchase 2,863 3,143 Interest on other short-term funding 4,708 — Interest on FHLB advances 21,671 49,960 Interest on long-term funding 10,058 6,281 Total interest expense 265,530 168,807 Net interest income 257,858 274,010 Provision for credit losses 24,001 17,971 Net interest income after provision for credit losses 233,857 256,039 Noninterest income Wealth management fees 21,694 20,189 Service charges and deposit account fees 12,439 12,994 Card-based fees 11,267 10,586 Other fee-based revenue 4,402 4,276 Capital markets, net 4,050 5,083 Mortgage banking, net 2,662 3,545 Bank and corporate owned life insurance 2,570 2,664 Asset (losses) gains, net ( 306 ) 263 Investment securities gains, net 3,879 51 Other 2,327 2,422 Total noninterest income 64,985 62,073 Noninterest expense Personnel 119,395 116,420 Technology 26,200 23,598 Occupancy 13,633 15,063 Business development and advertising 6,517 5,849 Equipment 4,599 4,930 Legal and professional 4,672 3,857 Loan and foreclosure costs 1,979 1,138 FDIC assessment 13,946 6,875 Other intangible amortization 2,203 2,203 Other 4,513 7,479 Total noninterest expense 197,657 187,412 Income before income taxes 101,185 130,700 Income tax expense 20,016 27,340 Net income 81,169 103,360 Preferred stock dividends 2,875 2,875 Net income available to common equity $ 78,294 $ 100,485 Earnings per common share Basic $ 0.52 $ 0.67 Diluted $ 0.52 $ 0.66

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Mar 31, ($ in thousands) 2024 2023 Net income $ 81,169 $ 103,360 Other comprehensive income (loss), net of tax AFS investment securities Net unrealized (losses) gains ( 29,889 ) 36,478 Amortization of net unrealized losses on AFS securities transferred to HTM securities 2,060 2,267 Reclassification adjustment for net losses realized in net income 197 — Income tax benefit (expense) 6,885 ( 9,892 ) Other comprehensive (loss) income on AFS securities ( 20,746 ) 28,853 Cash flow hedge derivatives Net unrealized (losses) gains ( 19,461 ) 13,763 Reclassification adjustment for net losses realized in net income 4,823 1,262 Income tax (expense) ( 1,688 ) ( 4,694 ) Other comprehensive (loss) income on cash flow hedge derivatives ( 16,326 ) 10,331 Defined benefit pension and postretirement obligations Amortization of prior service cost ( 72 ) ( 81 ) Amortization of actuarial (gain) loss ( 7 ) 30 Income tax (expense) benefit ( 1,633 ) 79 Other comprehensive (loss) income on pension and postretirement obligations ( 1,712 ) 27 Total other comprehensive (loss) income ( 38,785 ) 39,211 Comprehensive income $ 42,384 $ 142,571 Numbers may not sum due to rounding. See accompanying notes to consolidated financial statements. 7 Table of Contents

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (In thousands, except per share data) Preferred Equity Common Stock Surplus Retained Earnings Accumulated Other Comprehensive (Loss) Treasury Stock Total Balance, December 31, 2023 $ 194,112 $ 1,752 $ 1,714,822 $ 2,946,805 $ ( 171,096 ) $ ( 512,421 ) $ 4,173,973 Comprehensive income: Net income — — — 81,169 — — 81,169 Other comprehensive (loss) — — — — ( 38,785 ) — ( 38,785 ) Comprehensive income 42,384 Common stock issued: Stock-based compensation plans, net — — ( 13,839 ) — — 17,749 3,910 Purchase of treasury stock, open market purchases — — — — — ( 18,289 ) ( 18,289 ) Purchase of treasury stock, stock-based compensation plans — — — — — ( 4,572 ) ( 4,572 ) Cash dividends: Common stock, $0.22 per share — — — ( 33,527 ) — — ( 33,527 ) Preferred stock (a) — — — ( 2,875 ) — — ( 2,875 ) Stock-based compensation expense, net — — 7,669 — — — 7,669 Balance, March 31, 2024 $ 194,112 $ 1,752 $ 1,708,652 $ 2,991,571 $ ( 209,881 ) $ ( 517,533 ) $ 4,168,673 Numbers may not sum due to rounding. (a) Series E, $ 0.3671875 per share; and Series F, $ 0.3515625 per share. (In thousands, except per share data) Preferred Equity Common Stock Surplus Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Balance, December 31, 2022 $ 194,112 $ 1,752 $ 1,712,733 $ 2,904,882 $ ( 272,799 ) $ ( 525,190 ) $ 4,015,490 Comprehensive income: Net income — — — 103,360 — — 103,360 Other comprehensive income — — — — 39,211 — 39,211 Comprehensive income 142,571 Common stock issued: Stock-based compensation plans, net — — ( 12,612 ) — — 14,379 1,766 Purchase of treasury stock, stock-based compensation plans — — — — — ( 5,362 ) ( 5,362 ) Cash dividends: Common stock, $0.21 per share — — — ( 32,013 ) — — ( 32,013 ) Preferred stock (a) — — — ( 2,875 ) — — ( 2,875 ) Stock-based compensation expense, net

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Mar 31, ($ in thousands) 2024 2023 Cash flows from operating activities Net income $ 81,169 $ 103,360 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 24,001 17,971 Depreciation and amortization 12,352 11,425 Change in MSRs valuation ( 1,646 ) 1,857 Amortization of other intangible assets 2,203 2,203 Amortization and accretion on earning assets, funding, and other, net 10,673 338 Net amortization of tax credit investments 8,990 8,574 (Gains) on sales of investment securities, net ( 3,857 ) — Asset losses (gains), net 306 ( 263 ) (Gains) loss on mortgage banking activities, net ( 22 ) 251 Mortgage loans originated and acquired for sale ( 105,394 ) ( 69,254 ) Proceeds from sales of mortgage loans held for sale 91,026 54,652 Changes in certain assets and liabilities: Decrease (increase) in interest receivable 2,477 ( 7,955 ) Increase in interest payable 15,590 14,775 (Decrease) in expense payable ( 30,827 ) ( 52,396 ) Increase (decrease) in net derivative position 35,008 ( 42,403 ) Net change in other assets and other liabilities 12,453 4,336 Net cash provided by operating activities 154,500 47,470 Cash flows from investing activities Net (increase) in loans ( 222,656 ) ( 414,268 ) Purchases of: AFS securities ( 341,275 ) ( 681,386 ) HTM securities — ( 41,524 ) FHLB and Federal Reserve Bank stocks and equity securities ( 16,585 ) ( 56,892 ) Proceeds from: Sales of AFS securities 9,472 — Sale of FHLB and Federal Reserve Bank stocks and equity securities 98,005 15,765 Prepayments, calls, and maturities of AFS securities 176,266 79,746 Prepayments, calls, and maturities of HTM securities 28,026 33,053 Sales, prepayments, calls, and maturities of other assets 4,337 10,115 Premises, equipment, and software ( 8,500 ) ( 13,898 ) Net change in

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements These interim consolidated financial statements have been prepared according to the rules and regulations of the SEC and, therefore, certain information and footnote disclosures normally presented in accordance with GAAP have been omitted or abbreviated. The information contained on the consolidated financial statements and footnotes in Associated Banc-Corp's 2023 Annual Report on Form 10-K should be referred to in connection with the reading of these unaudited interim consolidated financial statements. Note 1 Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and comprehensive income, changes in stockholders' equity, and cash flows of the Corporation and Parent Company for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. The determination of the ACLL is particularly susceptible to significant change. Management has evaluated subsequent events for potential recognition or disclosure. Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Note 2 Summary of Significant Accounting Policies The accounting and reporting policies of the Corporation conform to U

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