PR Newswire
GREEN BAY, Wis., July 20, 2017
GREEN BAY, Wis., July 20, 2017 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $56 million, or $0.36 per common share for the quarter ended June 30, 2017. This compares to net income available to common equity of $47 million, or $0.31 per common share for the quarter ended June 30, 2016.
"Robust loan growth and improving fee-based income trends drove this quarter's results. Our residential mortgage retention strategy contributed to most of this quarter's loan growth and we are also pleased to report solid commercial and business lending growth. We also benefited from improving fee-based revenue streams; particularly, card-based and nondeposit fees, trust service fees, and brokerage and annuity commissions which contributed to bottom line expansion," said President and CEO Philip B. Flynn. "Disciplined expense controls combined with improving credit trends rounded out the quarter. We remain on track to deliver on our full year guidance."
SECOND QUARTER SUMMARY
SECOND QUARTER FINANCIAL RESULTS
Loans
Year-to-date average loans were up over 5% from the first half of last year. Second quarter average loans of $20.5 billion were up 4%, or $880 million from the year ago quarter and were up $449 million from the first quarter.
With respect to second quarter average balances:
Deposits
Year-to-date average deposits were up over 5% from the first half of last year. Second quarter average deposits of $21.5 billion were up 6%, or $1.2 billion from the year ago quarter and were up modestly from the first quarter. The loan to deposit ratio was 96% at quarter-end.
With respect to second quarter average balances:
Net Interest Income and Net Interest Margin
Net interest income was up 4%, or $7 million from the year ago quarter, with net interest margin increasing 2 basis points year over year. Second quarter net interest income of $184 million was up 2%, or $4 million from the first quarter.
Noninterest Income
Second quarter total noninterest income of $82 million improved modestly from the year ago quarter and increased 3%, or $3 million from the prior quarter.
With respect to second quarter noninterest income line items:
Noninterest Expense
Second quarter total noninterest expense of $176 million was up $2 million, or 1% from the year ago quarter and up $3 million, or 2% from the prior quarter. The year-to-date efficiency ratio improved by over 200 basis points from the comparable period last year.
With respect to second quarter noninterest expense line items:
Taxes
Second quarter income tax expense was $20 million with an effective tax rate of 26%, compared to $21 million and 30% in the year ago quarter, and $21 million and 27% in the prior quarter. The second quarter's lower effective tax rate benefited from a partial release of reserves due a favorable state tax court ruling.
Credit
The second quarter provision for credit losses of $12 million was down $2 million from the year ago quarter, but up $3 million from the prior quarter.
Capital
The Company's capital position remains strong, with a CET1 ratio of 9.9% at June 30, 2017. The Company's capital ratios continue to be in excess of the Basel III "well-capitalized" regulatory benchmarks on a fully phased in basis.
SECOND QUARTER 2017 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 20, 2017. 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 second quarter 2017 earnings call. The second quarter 2017 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 nearly $30 billion and is one of the top 50 publicly traded U.S. bank holding companies. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio, and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.
FORWARD LOOKING STATEMENTS
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "should," "will," "intend," "outlook," or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release 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.
Investor Contact:
Jessica Vanden Heuvel, Vice President, Director of Investor Relations
920-491-7059
Media Contact:
Jennifer Kaminski, Vice President, Public Relations Senior Manager
920-491-7576
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SOURCE Associated Banc-Corp
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