Associated Banc-Corp Q2 2024 10-Q Filing

TL;DR

ASB filed its Q2 10-Q. Financials look solid.

AI Summary

Associated Banc-Corp filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and positions for the second quarter of 2024. Key financial data and disclosures relevant to investors and regulatory bodies are presented.

Why It Matters

This filing provides crucial insights into Associated Banc-Corp's financial health and operational performance during the second quarter of 2024, impacting investor decisions and market perception.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 150,900,815 — Shares Outstanding (Indicates the total number of shares available for trading as of the reporting period.)

Key Players & Entities

• ASSOCIATED BANC-CORP (company) — Filer
• 0000007789 (company) — Central Index Key
• 20240630 (date) — Period of Report
• 20240730 (date) — Filing Date
• 433 MAIN STREET (location) — Business Address
• GREEN BAY (location) — City
• WI (location) — State
• 54301 (location) — ZIP Code

FAQ

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-20240630.htm (10-Q) — 5749KB
• asb06302024ex311.htm (EX-31.1) — 9KB
• asb06302024ex312.htm (EX-31.2) — 9KB
• asb06302024ex32.htm (EX-32) — 6KB
• 0000007789-24-000062.txt ( ) — 26532KB
• asb-20240630.xsd (EX-101.SCH) — 87KB
• asb-20240630_cal.xml (EX-101.CAL) — 154KB
• asb-20240630_def.xml (EX-101.DEF) — 677KB
• asb-20240630_lab.xml (EX-101.LAB) — 1121KB
• asb-20240630_pre.xml (EX-101.PRE) — 871KB
• asb-20240630_htm.xml (XML) — 7007KB

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 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12

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 73

Controls and Procedures

Item 4. Controls and Procedures 74

Other Information

PART II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 75

Risk Factors

Item 1A. Risk Factors 75

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 75

Other Information

Item 5. Other Information 75

Exhibits

Item 6. Exhibits 76

Signatures

Signatures 77 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 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 Associated Banc-Corp individually RAP Retirement A

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements: ASSOCIATED BANC-CORP Consolidated Balance Sheets Jun 30, 2024 Dec 31, 2023 (In thousands, except share and per share data) (Unaudited) (Audited) Assets Cash and due from banks $ 470,818 $ 484,384 Interest-bearing deposits in other financial institutions 484,677 425,089 Federal funds sold and securities purchased under agreements to resell 3,600 14,350 AFS investment securities, at fair value 3,912,730 3,600,892 HTM investment securities, net, at amortized cost 3,799,035 3,860,160 Equity securities 22,944 41,651 FHLB and Federal Reserve Bank stocks, at cost 212,102 229,171 Residential loans held for sale 83,795 33,011 Commercial loans held for sale — 90,303 Loans 29,618,271 29,216,218 Allowance for loan losses ( 355,844 ) ( 351,094 ) Loans, net 29,262,428 28,865,124 Tax credit and other investments 246,300 258,067 Premises and equipment, net 369,968 372,978 Bank and corporate owned life insurance 683,451 682,649 Goodwill 1,104,992 1,104,992 Other intangible assets, net 36,066 40,471 Mortgage servicing rights, net 85,640 84,390 Interest receivable 173,106 169,569 Other assets 672,256 658,604 Total assets $ 41,623,908 $ 41,015,855 Liabilities and stockholders' equity Noninterest-bearing demand deposits $ 5,815,045 $ 6,119,956 Interest-bearing deposits 26,875,995 27,326,093 Total deposits 32,691,039 33,446,049 Short-term funding 859,539 326,780 FHLB advances 2,673,046 1,940,194 Other long-term funding 536,113 541,269 Allowance for unfunded commitments 33,776 34,776 Accrued expenses and other liabilities 588,057 552,814 Total liabilities $ 37,381,571 $ 36,841,882 Stockholders' equity Preferred equity $ 194,112 $ 194,112 Common equity Common stock $ 1,752 $ 1,752 Surplus 1,711,316 1,714,822 Retained earnings 3,070,762 2,946,805 Accumulated other comprehensive (loss) ( 219,214 ) ( 171,096 ) Treasury stock, at cost ( 516,391 ) ( 512,421 ) Total common equity 4,048,225 3,979,861 Total stockhold

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Income (Unaudited) Three Months Ended Jun 30, Six Months Ended Jun 30, (In thousands, except per share data) 2024 2023 2024 2023 Interest income Interest and fees on loans $ 456,788 $ 423,307 $ 911,260 $ 814,626 Interest and dividends on investment securities Taxable 50,278 35,845 96,826 65,987 Tax-exempt 14,669 15,994 29,443 32,019 Other interest 8,539 6,086 16,133 11,415 Total interest income 530,274 481,231 1,053,662 924,048 Interest expense Interest on deposits 221,062 162,196 447,293 271,618 Interest on federal funds purchased and securities sold under agreements to repurchase 2,303 2,261 5,166 5,404 Interest on other short-term funding 6,077 — 10,785 1 Interest on FHLB advances 34,143 49,261 55,814 99,222 Interest on long-term funding 10,096 9,596 20,154 15,876 Total interest expense 273,681 223,314 539,211 392,121 Net interest income 256,593 257,917 514,451 531,927 Provision for credit losses 23,008 22,100 47,009 40,071 Net interest income after provision for credit losses 233,585 235,817 467,442 491,856 Noninterest income Wealth management fees 22,628 20,483 44,323 40,672 Service charges and deposit account fees 12,263 12,372 24,702 25,366 Card-based fees 11,975 11,396 23,242 21,982 Other fee-based revenue 4,857 4,465 9,259 8,740 Capital markets, net 4,685 5,093 8,735 10,176 Mortgage banking, net 2,505 7,768 5,166 11,313 Bank and corporate owned life insurance 4,584 2,172 7,154 4,835 Asset (losses), net ( 627 ) ( 299 ) ( 933 ) ( 35 ) Investment securities gains, net 67 14 3,947 66 Other 2,222 2,080 4,549 4,501 Total noninterest income 65,159 65,543 130,144 127,616 Noninterest expense Personnel 121,581 114,089 240,976 230,510 Technology 27,161 24,220 53,362 47,818 Occupancy 13,128 13,587 26,761 28,650 Business development and advertising 7,535 7,106 14,052 12,955 Equipment 4,450 4,975 9,049 9,906 Legal and professional 4,429 4,831

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Jun 30, Six Months Ended Jun 30, ($ in thousands) 2024 2023 2024 2023 Net income $ 115,573 $ 87,154 $ 196,742 $ 190,514 Other comprehensive (loss), net of tax AFS investment securities Net unrealized (losses) ( 11,126 ) ( 49,066 ) ( 41,014 ) ( 12,588 ) Amortization of net unrealized losses on AFS securities transferred to HTM securities 2,122 2,289 4,182 4,556 Reclassification adjustment for net losses realized in net income — — 197 — Income tax benefit 2,253 11,843 9,138 1,951 Other comprehensive (loss) on AFS securities ( 6,751 ) ( 34,934 ) ( 27,498 ) ( 6,081 ) Cash flow hedge derivatives Net unrealized (losses) ( 6,787 ) ( 34,147 ) ( 26,248 ) ( 20,384 ) Reclassification adjustment for net losses realized in net income 4,769 3,319 9,592 4,581 Income tax (expense) benefit ( 503 ) 7,867 ( 2,192 ) 3,173 Other comprehensive (loss) on cash flow hedge derivatives ( 2,522 ) ( 22,961 ) ( 18,848 ) ( 12,630 ) Defined benefit pension and postretirement obligations Amortization of prior service cost ( 73 ) ( 81 ) ( 144 ) ( 163 ) Amortization of actuarial (gain) loss ( 7 ) ( 7 ) ( 14 ) 22 Income tax benefit (expense) 20 ( 71 ) ( 1,614 ) 8 Other comprehensive (loss) on pension and postretirement obligations ( 60 ) ( 159 ) ( 1,772 ) ( 132 ) Total other comprehensive (loss) ( 9,333 ) ( 58,054 ) ( 48,117 ) ( 18,843 ) Comprehensive income $ 106,241 $ 29,100 $ 148,625 $ 171,671 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 Comprehensive income: Net income — — — 115,573 — — 115,573 Other comprehensive (loss) — — — — ( 9,333 ) — ( 9,333 ) Comprehensive income 106,241 Common stock issued: Stock-based compensation plans, net — — ( 1,704 ) — — 2,230 526 Purchase of treasury stock, stock-based compensation plans — — — — — ( 1,088 ) ( 1,088 ) Cash dividends: Common stock, $0.22 per share — — — ( 33,507 ) — — ( 33,507 ) Preferred stock (a) — — — ( 2,875 ) — — ( 2,875 ) Stock-based compensation expense, net — — 4,368 — — — 4,368 Balance, June 30, 2024 $ 194,112 $ 1,752 $ 1,711,316 $ 3,070,762 $ ( 219,214 ) $ ( 516,391 ) $ 4,242,337 Numbers may not sum due to rounding. (a) Series E, $ 0.3671875 per share; and Series F, $ 0.3515625 per share. 8 Table of Contents ASSOCIATED BANC-CORP Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (In thousands, except p

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Cash Flows (Unaudited) Six Months Ended Jun 30, ($ in thousands) 2024 2023 Cash flows from operating activities Net income $ 196,742 $ 190,514 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 47,009 40,071 Depreciation and amortization 24,519 22,914 Change in MSRs valuation ( 2,567 ) ( 5,135 ) Amortization of other intangible assets 4,405 4,405 Amortization and accretion on earning assets, funding, and other, net 20,405 16,509 Net amortization of tax credit investments 17,788 17,227 (Gains) on sales of investment securities, net ( 3,857 ) — Asset losses, net 933 35 Loss on mortgage banking activities, net 882 1,389 Mortgage loans originated and acquired for sale ( 274,358 ) ( 168,395 ) Proceeds from sales of mortgage loans held for sale 228,732 151,167 Changes in certain assets and liabilities: (Increase) in interest receivable ( 3,537 ) ( 14,736 ) Increase in interest payable 13,646 44,367 (Decrease) in expense payable ( 15,042 ) ( 40,882 ) Increase (decrease) in net derivative position 10,523 ( 37,175 ) Net change in other assets and other liabilities 1,772 ( 43,503 ) Net cash provided by operating activities 267,996 178,771 Cash flows from investing activities Net (increase) in loans ( 378,926 ) ( 1,054,924 ) Purchases of: AFS securities ( 695,457 ) ( 948,326 ) HTM securities — ( 41,524 ) FHLB and Federal Reserve Bank stocks and equity securities ( 99,192 ) ( 97,622 ) Proceeds from: Sales of AFS securities 9,472 — Sale of FHLB and Federal Reserve Bank stocks and equity securities 139,110 115,975 Prepayments, calls, and maturities of AFS securities 328,990 172,680 Prepayments, calls, and maturities of HTM securities 62,894 62,212 Sales, prepayments, calls, and maturities of other assets 1,700 17,988 Premises, equipment, and software ( 20,016 ) ( 29,663 ) Net change in tax

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

View Full Filing

View this 10-Q filing on SEC EDGAR