Associated Banc-Corp Files Q3 2024 10-Q

TL;DR

ASBC 10-Q filed for Q3 2024. Financials updated.

AI Summary

Associated Banc-Corp filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including information on its various preferred stock and subordinated notes. The company's primary business address is 433 Main Street, Green Bay, WI 54301.

Why It Matters

This filing provides investors with an update on Associated Banc-Corp's financial health and operational status for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Associated Banc-Corp is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 151,255,013 — Shares (Total shares outstanding as of the reporting period.)

Key Players & Entities

• ASSOCIATED BANC-CORP (company) — Filer
• 433 MAIN STREET, GREEN BAY, WI 54301 (location) — Business Address
• 09/30/24 (date) — Period of Report
• 2024 Q3 (period) — Quarter

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-20240930.htm (10-Q) — 5826KB
• ex-10retirementagreement.htm (EX-10) — 4KB
• asb09302024ex311.htm (EX-31.1) — 9KB
• asb09302024ex312.htm (EX-31.2) — 9KB
• asb09302024ex32.htm (EX-32) — 6KB
• ex-10retirementagreement001.jpg (GRAPHIC) — 152KB
• ex-10retirementagreement002.jpg (GRAPHIC) — 184KB
• ex-10retirementagreement003.jpg (GRAPHIC) — 236KB
• ex-10retirementagreement004.jpg (GRAPHIC) — 218KB
• ex-10retirementagreement005.jpg (GRAPHIC) — 226KB
• ex-10retirementagreement006.jpg (GRAPHIC) — 209KB
• ex-10retirementagreement007.jpg (GRAPHIC) — 213KB
• ex-10retirementagreement008.jpg (GRAPHIC) — 207KB
• ex-10retirementagreement009.jpg (GRAPHIC) — 193KB
• ex-10retirementagreement010.jpg (GRAPHIC) — 164KB
• ex-10retirementagreement011.jpg (GRAPHIC) — 77KB
• 0000007789-24-000075.txt ( ) — 30033KB
• asb-20240930.xsd (EX-101.SCH) — 76KB
• asb-20240930_cal.xml (EX-101.CAL) — 154KB
• asb-20240930_def.xml (EX-101.DEF) — 697KB
• asb-20240930_lab.xml (EX-101.LAB) — 1212KB
• asb-20240930_pre.xml (EX-101.PRE) — 940KB
• asb-20240930_htm.xml (XML) — 7059KB

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 Net Asset Value measured at fair 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 Account

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements: ASSOCIATED BANC-CORP Consolidated Balance Sheets Sep 30, 2024 Dec 31, 2023 (In thousands, except share and per share data) (Unaudited) (Audited) Assets Cash and due from banks $ 554,631 $ 484,384 Interest-bearing deposits in other financial institutions 408,101 425,089 Federal funds sold and securities purchased under agreements to resell 4,310 14,350 AFS investment securities, at fair value 4,152,527 3,600,892 HTM investment securities, net, at amortized cost 3,769,150 3,860,160 Equity securities 23,158 41,651 FHLB and Federal Reserve Bank stocks, at cost 178,168 229,171 Residential loans held for sale 67,219 33,011 Commercial loans held for sale 11,833 90,303 Loans 29,990,897 29,216,218 Allowance for loan losses ( 361,765 ) ( 351,094 ) Loans, net 29,629,131 28,865,124 Tax credit and other investments 265,385 258,067 Premises and equipment, net 373,816 372,978 Bank and corporate owned life insurance 686,704 682,649 Goodwill 1,104,992 1,104,992 Other intangible assets, net 33,863 40,471 Mortgage servicing rights, net 81,977 84,390 Interest receivable 167,777 169,569 Other assets 698,073 658,604 Total assets $ 42,210,815 $ 41,015,855 Liabilities and stockholders' equity Noninterest-bearing demand deposits $ 5,857,421 $ 6,119,956 Interest-bearing deposits 27,696,877 27,326,093 Total deposits 33,554,298 33,446,049 Short-term funding 917,028 326,780 FHLB advances 1,913,294 1,940,194 Other long-term funding 844,342 541,269 Allowance for unfunded commitments 35,776 34,776 Accrued expenses and other liabilities 532,842 552,814 Total liabilities $ 37,797,579 $ 36,841,882 Stockholders' equity Preferred equity $ 194,112 $ 194,112 Common equity Common stock $ 1,752 $ 1,752 Surplus 1,714,055 1,714,822 Retained earnings 3,122,307 2,946,805 Accumulated other comprehensive (loss) ( 111,748 ) ( 171,096 ) Treasury stock, at cost ( 507,241 ) ( 512,421 ) Total common equity 4,219,125 3,979,861 Total stoc

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Income (Unaudited) Three Months Ended Sep 30, Nine Months Ended Sep 30, (In thousands, except per share data) 2024 2023 2024 2023 Interest income Interest and fees on loans $ 465,728 $ 447,912 $ 1,376,988 $ 1,262,538 Interest and dividends on investment securities Taxable 51,229 38,210 148,055 104,197 Tax-exempt 14,660 15,941 44,103 47,960 Other interest 8,701 6,575 24,834 17,990 Total interest income 540,318 508,637 1,593,980 1,432,685 Interest expense Interest on deposits 231,623 193,131 678,916 464,749 Interest on federal funds purchased and securities sold under agreements to repurchase 3,385 3,100 8,551 8,504 Interest on other short-term funding 6,144 — 16,929 1 Interest on FHLB advances 24,799 48,143 80,612 147,365 Interest on long-term funding 11,858 10,019 32,012 25,895 Total interest expense 277,809 254,394 817,021 646,514 Net interest income 262,509 254,244 776,960 786,171 Provision for credit losses 20,991 21,943 68,000 62,014 Net interest income after provision for credit losses 241,518 232,301 708,960 724,157 Noninterest income Wealth management fees 24,144 20,828 68,466 61,499 Service charges and deposit account fees 13,708 12,864 38,410 38,230 Card-based fees 11,731 11,510 34,973 33,492 Other fee-based revenue 5,057 4,509 14,316 13,249 Capital markets, net 4,317 5,368 13,052 15,544 Mortgage banking, net 2,132 6,501 7,299 17,814 Bank and corporate owned life insurance 4,001 2,047 11,156 6,882 Asset (losses) gains, net ( 474 ) 625 ( 1,407 ) 590 Investment securities gains (losses), net 100 ( 11 ) 4,047 55 Other 2,504 2,339 7,054 6,841 Total noninterest income 67,221 66,579 197,365 194,195 Noninterest expense Personnel 121,036 117,159 362,012 347,669 Technology 27,217 26,172 80,579 73,990 Occupancy 13,536 14,125 40,297 42,775 Business development and advertising 6,683 7,100 20,735 20,054 Equipment 4,653 5,016 13,702 14,921 Le

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Sep 30, Nine Months Ended Sep 30, ($ in thousands) 2024 2023 2024 2023 Net income $ 88,018 $ 83,248 $ 284,760 $ 273,762 Other comprehensive income (loss), net of tax AFS investment securities Net unrealized gains (losses) 90,858 ( 56,924 ) 49,844 ( 69,512 ) Amortization of net unrealized losses on AFS securities transferred to HTM securities 2,147 2,327 6,329 6,883 Reclassification adjustment for net losses realized in net income — — 197 — Income tax (expense) benefit ( 23,198 ) 13,928 ( 14,060 ) 15,879 Other comprehensive income (loss) on AFS securities 69,807 ( 40,669 ) 42,309 ( 46,751 ) Cash flow hedge derivatives Net unrealized gains (losses) 25,609 ( 13,592 ) ( 639 ) ( 33,976 ) Reclassification adjustment for net losses realized in net income 4,705 4,516 14,297 9,097 Income tax benefit 7,405 2,315 5,213 5,488 Other comprehensive income (loss) on cash flow hedge derivatives 37,718 ( 6,762 ) 18,871 ( 19,391 ) Defined benefit pension and postretirement obligations Amortization of prior service cost ( 73 ) ( 81 ) ( 217 ) ( 244 ) Amortization of actuarial (gain) loss ( 7 ) ( 7 ) ( 21 ) 15 Income tax benefit (expense) 20 23 ( 1,594 ) 31 Other comprehensive (loss) on pension and postretirement obligations ( 60 ) ( 66 ) ( 1,832 ) ( 198 ) Total other comprehensive income (loss) 107,466 ( 47,497 ) 59,348 ( 66,340 ) Comprehensive income $ 195,483 $ 35,751 $ 344,108 $ 207,422 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 Comprehensive income: Net income — — — 88,018 — — 88,018 Other comprehensive income — — — — 107,466 — 107,466 Comprehensive income 195,483 Common stock issued: Stock-based compensation plans, net — — ( 652 ) — — 9,498 8,845 Purchase of treasury sto

Financial Statements Continued

Item 1. Financial Statements Continued: ASSOCIATED BANC-CORP Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended Sep 30, ($ in thousands) 2024 2023 Cash flows from operating activities Net income $ 284,760 $ 273,762 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 68,000 62,014 Depreciation and amortization 36,414 34,703 Change in MSRs valuation 959 ( 14,658 ) Amortization of other intangible assets 6,608 6,608 Amortization and accretion on earning assets, funding, and other, net 30,998 27,394 Net amortization of tax credit investments 26,307 25,830 (Gains) on sales of investment securities, net ( 3,857 ) — Asset losses (gains), net 1,407 ( 590 ) Loss on mortgage banking activities, net 2,284 2,154 Mortgage loans originated and acquired for sale ( 450,532 ) ( 283,469 ) Proceeds from sales of mortgage loans held for sale 415,840 254,619 Changes in certain assets and liabilities: Decrease (increase) in interest receivable 1,792 ( 26,670 ) Increase in interest payable 19,507 69,461 Increase (decrease) in expense payable 332 ( 22,632 ) (Decrease) increase in net derivative position ( 61,615 ) 3,721 Net change in other assets and other liabilities ( 6,084 ) ( 34,137 ) Net cash provided by operating activities 373,120 378,110 Cash flows from investing activities Net (increase) in loans ( 795,057 ) ( 1,436,901 ) Purchases of: AFS securities ( 1,177,627 ) ( 1,109,501 ) HTM securities — ( 41,524 ) FHLB and Federal Reserve Bank stocks and equity securities ( 122,205 ) ( 114,985 ) Proceeds from: Sales of AFS securities 9,472 — Sale of FHLB and Federal Reserve Bank stocks and equity securities 196,049 131,272 Prepayments, calls, and maturities of AFS securities 660,732 288,313 Prepayments, calls, and maturities of HTM securities 92,402 101,847 Sales, prepayments, calls, and maturities of other assets 12,759 20,224 Premises, equipment, and software ( 31,702 )

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 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.S. GAAP and to gen

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