Over 2,400 Associate Bank employees are likely to participate in hundreds of activities benefiting 200+ community organizations across Wisconsin, Illinois and Minnesota GREEN BAY, Wis., May 29, 2024 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated") announced plans for its 2024 Stock the Box and Day of Service initiatives, an annual food drive and volunteer event that mobilizes thousands of employees across the bank's footprint to give back to their local communities. In its second year, the 20 ...

Associated Banc-Corp. (ASB) remains well-positioned for revenue growth on the back of solid loans and deposit balance alongside higher rates. Further, strategic initiatives and a strong balance sheet are likely to bolster operational efficiency. However, an elevated expense base, worsening asset quality and concentrated loan portfolio remain challenges.Associated Banc-Corp.’s organic growth strategy is reflected in its robust loans and deposit balances and efforts to boost fee income. Though the company’s r ...

Core Viewpoint - Associated Banc-Corp is effectively navigating the challenges of maintaining deposits and rising interest expenses, making its baby bond an attractive option for income investors [1][18]. Company Financials - The bank's net interest income has increased and stabilized, surpassing pre-pandemic levels due to rising interest rates [4][9]. - Associated Banc-Corp has experienced a 10% year-over-year growth in deposits, marking eight consecutive quarters of deposit growth, which is crucial for managing interest expenses [12]. - Despite a decline in lending in the fourth quarter, the bank has maintained year-over-year lending growth since Q1 2022 and has utilized excess capital to purchase agency and Treasury securities, which increased by $100 million in the first quarter [12]. Risks - The bank has exposure to commercial real estate loans, particularly those classified as investor or non-owner occupied, which make up approximately 17% of total loans, with office loans constituting only 3% [14]. - Uninsured deposits pose a risk, but the bank has improved its liquidity, achieving 115% coverage for liquidity available within one business day, up from 81% during the regional banking crisis [15]. - The baby bond has a reset feature in March 2028, which introduces interest rate risk, as the yield may decline if rates are significantly lower at that time [16]. Conclusion - Associated Banc-Corp is positioned well within the banking sector, with common shares at a 52-week high and preferred shares offering minimal dividend risk. The baby bond is highlighted as a safer investment with a higher income potential, making it a recommended option for income investors [18].

The three-year community commitment will help uplift and enable customers to succeed across the bank's footprint GREEN BAY, Wis., May 15, 2024 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated") today announced its $2 billion Community Commitment Plan ("CCP") that will uphold its dedication to the communities it supports and empowers. The 2024-2026 CCP marks Associated's fourth three-year commitment since 2016, which has resulted in $9 billion contributed to communities across Wisconsin, Minneso ...

Core Insights - Associated Banc-Corp has appointed Chun Schiros as senior vice president and chief analytics officer to enhance its data utilization for customer relationship management [1][2] - The addition of Schiros aligns with the bank's strategic plan to improve talent and technology in key business areas, focusing on customer feedback integration for better product and service offerings [1] Company Overview - Associated Banc-Corp is the largest bank holding company in Wisconsin, with total assets of $41 billion and nearly 200 banking locations serving over 100 communities in Wisconsin, Illinois, and Minnesota [3] - The bank also operates loan production offices in several states, including Indiana, Michigan, Missouri, New York, Ohio, and Texas [3] Leadership Background - Chun Schiros previously served as head of enterprise data science at Regions Bank, where she led the development of predictive models and advanced data analytics [2] - Schiros has been recognized for her contributions to data and analytics in the banking sector and holds multiple advanced degrees in engineering and statistics [2]

PART I. Financial Information This part presents the unaudited consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Associated Banc-Corp's unaudited consolidated financial statements, including balance sheets, income, comprehensive income, equity changes, cash flows, and detailed notes on accounting policies and key financial items [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the Corporation's financial position, detailing assets, liabilities, and stockholders' equity at specific dates | Metric (in thousands) | Mar 31, 2024 (Unaudited) | Dec 31, 2023 (Audited) | |:----------------------|:-------------------------|:-----------------------| | **Assets** | | | | Total assets | $ 41,137,084 | $ 41,015,855 | | Loans, net | 29,138,257 | 28,865,124 | | 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 | | **Liabilities** | | | | Total liabilities | $ 36,968,412 | $ 36,841,882 | | Total deposits | 33,713,158 | 33,446,049 | | FHLB advances | 1,333,411 | 1,940,194 | | **Stockholders' Equity** | | | | Total stockholders' equity | 4,168,673 | 4,173,973 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the Corporation's revenues, expenses, and net income over specific periods, highlighting profitability | Metric (in thousands, except per share data) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | |:---------------------------------------------|:--------------------------------|:--------------------------------| | Total interest income | $ 523,388 | $ 442,817 | | Total interest expense | 265,530 | 168,807 |\ | Net interest income | 257,858 | 274,010 | | Provision for credit losses | 24,001 | 17,971 | | Total noninterest income | 64,985 | 62,073 | | 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 | | Net income available to common equity | $ 78,294 | $ 100,485 | | Basic earnings per common share | $ 0.52 | $ 0.67 | | Diluted earnings per common share | $ 0.52 | $ 0.66 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the Corporation's comprehensive income, including net income and other comprehensive income (loss) components | Metric (in thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | |:----------------------|:--------------------------------|:--------------------------------| | Net income | $ 81,169 | $ 103,360 | | Other comprehensive (loss) income, net of tax: | | | | AFS investment securities | (20,746) | 28,853 | | Cash flow hedge derivatives | (16,326) | 10,331 | | Defined benefit pension and postretirement obligations | (1,712) | 27 | | Total other comprehensive (loss) income | (38,785) | 39,211 | | Comprehensive income | $ 42,384 | $ 142,571 | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the Corporation's stockholders' equity over time, including net income, dividends, and stock transactions | Metric (in thousands) | Balance, Dec 31, 2023 | Net Income | Other Comprehensive (Loss) | Stock-based Compensation Plans, net | Purchase of Treasury Stock, open market | Purchase of Treasury Stock, stock-based compensation | Cash Dividends, Common Stock | Cash Dividends, Preferred Stock | Stock-based Compensation Expense, net | Balance, Mar 31, 2024 | |:----------------------|:----------------------|:-----------|:---------------------------|:------------------------------------|:----------------------------------------|:-------------------------------------|:-----------------------------|:--------------------------------|:--------------------------------------|:----------------------| | Preferred Equity | $ 194,112 | — | — | — | — | — | — | (2,875) | — | $ 194,112 | | Common Stock | 1,752 | — | — | — | — | — | — | — | — | 1,752 | | Surplus | 1,714,822 | — | — | (13,839) | — | — | — | — | 7,669 | 1,708,652 | | Retained Earnings | 2,946,805 | 81,169 | — | — | — | — | (33,527) | (2,875) | — | 2,991,571 | | Accumulated Other Comprehensive (Loss) | (171,096) | — | (38,785) | — | — | — | — | — | — | (209,881) | | Treasury Stock | (512,421) | — | — | 17,749 | (18,289) | (4,572) | — | — | — | (517,533) | | Total | $ 4,173,973 | 81,169 | (38,785) | 3,910 | (18,289) | (4,572) | (33,527) | (2,875) | 7,669 | $ 4,168,673 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section reports the Corporation's cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | |:----------------------|:--------------------------------|:--------------------------------| | Net cash provided by operating activities | $ 154,500 | $ 47,470 | | Net cash (used in) investing activities | (275,320) | (1,076,322) | | Net cash provided by financing activities | 48,580 | 1,230,238 | | Net (decrease) increase in cash and cash equivalents | (72,239) | 201,385 | | Cash and cash equivalents at beginning of period | 923,823 | 621,455 | | Cash and cash equivalents at end of period | $ 851,583 | $ 822,840 | Supplemental Disclosures (in thousands) | Supplemental Disclosures (in thousands) | 2024 | 2023 | |:----------------------------------------|:------------|:----------| | Cash paid for interest | $ 249,660 | $ 153,760 | | Cash paid for income and franchise taxes | 1,995 | 1,086 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements [Note 1 Basis of Presentation](index=11&type=section&id=Note%201%20Basis%20of%20Presentation) Interim financial statements adhere to SEC rules and GAAP, with management estimates, especially for ACLL, being critical and subject to variation - Interim consolidated financial statements are prepared according to SEC rules and GAAP, with certain information and footnote disclosures omitted or abbreviated[25](index=25&type=chunk) - Management makes estimates and assumptions, with the determination of the **ACLL** being particularly susceptible to significant change[27](index=27&type=chunk) [Note 2 Summary of Significant Accounting Policies](index=11&type=section&id=Note%202%20Summary%20of%20Significant%20Accounting%20Policies) Accounting policies conform to U.S. GAAP; ASU 2023-02 adoption had immaterial impact, while future ASUs 2023-07 and 2023-09 are under evaluation - The Corporation's accounting and reporting policies conform to U.S. GAAP and general practice within the financial services industry[27](index=27&type=chunk) New Accounting Pronouncements Adopted | Standard | Description | Date of adoption | Effect on financial statements | |:---------|:------------|:-----------------|:-------------------------------| | ASU 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method | Permits reporting entities to elect to account for tax equity investments using the proportional amortization method if certain conditions are met | 1st Quarter 2024 | The Corporation has determined the impact on its results of operation, financial position, liquidity, and disclosures is immaterial | Future Accounting Pronouncements | Standard | Description | Date of anticipated adoption | Effect on financial statements | |:---------|:------------|:-----------------------------|:-------------------------------| | ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures | Improves financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities | Fiscal year 2024 and interim periods beginning in 1st quarter 2025 | The Corporation is currently evaluating the impact on its disclosures | | ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures | Addresses investor requests for more transparency about income tax information through improvements to income tax disclosures | 1st Quarter 2025 | The Corporation is currently evaluating the impact on its disclosures | [Note 3 Earnings Per Common Share](index=12&type=section&id=Note%203%20Earnings%20Per%20Common%20Share) Basic and diluted EPS for Q1 2024 were $0.52, a decrease from Q1 2023, primarily due to lower net income available to common equity | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | |:-------|:--------------------------------|:--------------------------------| | Net income available to common equity | $ 78,294 | $ 100,485 | | Basic earnings per common share | $ 0.52 | $ 0.67 | | Diluted earnings per common share | $ 0.52 | $ 0.66 | | Weighted average common shares outstanding (Basic) | 149,855 | 149,763 | | Diluted weighted average common shares outstanding | 151,292 | 151,128 | - Approximately **2 million anti-dilutive common stock options** were excluded from the earnings per common share calculations for both the three months ended March 31, 2024 and 2023[34](index=34&type=chunk) [Note 4 Stock-Based Compensation](index=13&type=section&id=Note%204%20Stock-Based%20Compensation) Stock-based compensation expense is amortized over vesting; Q1 2024 saw $8 million in restricted stock award expense and $30 million in unrecognized costs - Compensation expense for stock options and restricted stock awards is amortized on a straight-line basis over the vesting period[35](index=35&type=chunk) Stock Options Activity | Metric (in thousands) | Mar 31, 2024 | |:----------------------|:-------------| | Outstanding at Dec 31, 2023 | 3,792 | | Exercised | 179 | | Outstanding at Mar 31, 2024 | 3,613 | | Intrinsic value of stock options exercised (Q1 2024) | $ 722 | | Fair value of stock options vested (Q1 2024) | $ 489 | - Expense for restricted stock awards was **$8 million** for Q1 2024, compared to **$6 million** for Q1 2023, including **$3 million** for accelerated vesting for retirement eligible colleagues[38](index=38&type=chunk) - Unrecognized compensation costs related to restricted stock awards were **$30 million** at March 31, 2024[38](index=38&type=chunk) [Note 5 Investment Securities](index=14&type=section&id=Note%205%20Investment%20Securities) Investment securities include AFS and HTM; unrealized losses are due to interest rates, not credit, with no intent to sell, and Visa B shares were sold for a $4 million gain AFS Investment Securities (Mar 31, 2024) | Metric (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | |:----------------------|:---------------|:-----------------------|:--------------------------|:-----------| | Total AFS investment securities | $ 3,902,762 | $ 6,359 | $ (184,973) | $ 3,724,148| HTM Investment Securities (Mar 31, 2024) | Metric (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | |:----------------------|:---------------|:-----------------------|:--------------------------|:-----------| | Total HTM investment securities | $ 3,833,043 | $ 50,145 | $ (581,903) | $ 3,301,284| - Management does not believe any unrealized losses at March 31, 2024, represent credit deterioration, as they are primarily attributable to changes in interest rates and current market conditions[58](index=58&type=chunk) - The Corporation does not intend to sell, nor does it believe it will be required to sell, these securities before recovery of their amortized cost basis[58](index=58&type=chunk) - During the first quarter of 2024, the Corporation sold its remaining Visa Class B restricted shares at a gain of **$4 million**[49](index=49&type=chunk) [Note 6 Loans](index=19&type=section&id=Note%206%20Loans) Total loans reached $29.49 billion, with 62% commercial; ACLL increased to $387.78 million due to portfolio growth and macroeconomic trends, with no significant concentrations Loan Composition (in thousands) | Loan Type | Mar 31, 2024 | Dec 31, 2023 | |:----------|:-------------|:-------------| | Commercial and industrial | $ 9,858,329 | $ 9,731,555 | | Commercial real estate — owner occupied | 1,095,894 | 1,061,700 | | Commercial real estate — investor | 5,035,195 | 5,124,245 | | Real estate construction | 2,287,041 | 2,271,398 | | **Total commercial** | **18,276,460** | **18,188,898** | | Residential mortgage | 7,868,180 | 7,864,891 | | Auto finance | 2,471,257 | 2,256,162 | | Home equity | 619,764 | 628,526 | | Other consumer | 258,603 | 277,740 | | **Total consumer** | **11,217,802** | **11,027,319** | | **Total loans** | **$ 29,494,263** | **$ 29,216,218** | Gross Charge Offs by Origination Year (in thousands) | Loan Type | YTD 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |:----------|:---------|:-----|:-----|:-----|:-----|:------|:------| | Commercial and industrial | $ 1,024 | $ — | $ 125 | $ 553 | $ 17,724 | $ 3 | $ 19,429 | | Residential mortgage | — | — | 40 | — | — | 49 | 89 | | Auto finance | — | — | 767 | 1,675 | 158 | — | 2,600 | | Home equity | 93 | — | — | — | — | 15 | 108 | | Other consumer | 1,688 | — | 15 | 8 | 17 | 62 | 1,790 | | **Total gross charge offs** | **$ 2,806** | **$ —** | **$ 947** | **$ 2,236** | **$ 17,899** | **$ 98** | **$ 24,018** | Allowance for Credit Losses on Loans (ACLL) (in thousands) | Metric | Dec 31, 2023 | Net Charge offs | Provision for credit losses | Mar 31, 2024 | |:-------|:-------------|:----------------|:----------------------------|:-------------| | Allowance for loan losses | $ 351,094 | $ (22,088) | $ 27,000 | $ 356,006 | | Allowance for unfunded commitments | 34,776 | — | (3,000) | 31,776 | | **Total ACLL** | **$ 385,870** | **$ (22,088)** | **$ 24,000** | **$ 387,782** | [Note 7 Goodwill and Other Intangible Assets](index=29&type=section&id=Note%207%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill remained at $1.1 billion with no impairment; CDIs had a net book value of $38.27 million, and MSRs increased to $85.23 million - Goodwill remained at **$1.1 billion** at both March 31, 2024 and December 31, 2023[101](index=101&type=chunk) - No impairment charges were recorded in 2023 or the first three months of 2024[101](index=101&type=chunk) Core Deposit Intangibles (CDIs) (in thousands) | Metric | Mar 31, 2024 | |:-------|:-------------| | Net book value | $ 38,268 | | Amortization during the period | $ 2,203 | Mortgage Servicing Rights (MSRs) (in thousands) | Metric | Mar 31, 2024 | |:-------|:-------------| | MSRs at beginning of period | $ 84,390 | | Additions | 877 | | Paydowns | (1,687) | | Changes in fair value of asset | 1,646 | | MSRs at end of period | $ 85,226 | [Note 8 Short and Long-Term Funding](index=31&type=section&id=Note%208%20Short%20and%20Long-Term%20Funding) Total funding, excluding FHLB advances, increased to $1.30 billion due to $500 million in BTFP funding, while FHLB advances decreased by $607 million Short and Long-Term Funding (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | |:-------|:-------------|:-------------| | **Short-term funding** | | | | Federal funds purchased and securities sold under agreements to repurchase | $ 265,671 | $ 326,780 | | BTFP funding | 500,000 | — | | Total short-term funding | $ 765,671 | $ 326,780 | | **Long-term funding** | | | | Total long-term funding | $ 536,055 | $ 541,269 | | **Total short and long-term funding, excluding FHLB advances** | **$ 1,301,726** | **$ 868,049** | | **FHLB advances** | | | | Total FHLB advances | $ 1,333,411 | $ 1,940,194 | | **Total short and long-term funding** | **$ 2,635,137** | **$ 2,808,243** | - At March 31, 2024, the Corporation had pledged securities valued at **215%** of the gross outstanding balance of repurchase agreements to manage risk[108](index=108&type=chunk) [Note 9 Derivative and Hedging Activities](index=32&type=section&id=Note%209%20Derivative%20and%20Hedging%20Activities) Derivatives are used to manage interest rate and foreign currency risks, with gross derivative assets of $122.07 million and liabilities of $238.40 million at March 31, 2024 - The Corporation uses derivative financial instruments to manage economic risks, including interest rate, liquidity, foreign currency, and credit risk, primarily by managing its assets and liabilities and using derivatives[112](index=112&type=chunk) Gross Fair Values of Derivatives (in thousands) | Metric | Mar 31, 2024 Asset Fair Value | Mar 31, 2024 Liability Fair Value | Dec 31, 2023 Asset Fair Value | Dec 31, 2023 Liability Fair Value | |:-------|:------------------------------|:----------------------------------|:------------------------------|:----------------------------------| | Designated as hedging instruments: | | | | | | Interest rate-related instruments | $ 2,164 | $ 10,685 | $ 8,075 | $ 930 | | Foreign currency exchange forwards | 624 | 230 | 632 | 2,946 | | Not designated as hedging instruments: | | | | | | Interest rate-related and other instruments | 113,337 | 222,303 | 111,623 | 195,662 | | Foreign currency exchange forwards | 5,276 | 4,956 | 2,954 | 2,746 | | Mortgage banking | 666 | 222 | 439 | 673 | | **Gross derivatives before netting** | **$ 122,067** | **$ 238,397** | **$ 123,723** | **$ 202,958** | - The Corporation estimates that **$12 million** will be reclassified as a decrease to interest income over the next 12 months from amounts reported in accumulated other comprehensive income (loss) related to cash flow hedge derivatives[133](index=133&type=chunk) [Note 10 Balance Sheet Offsetting](index=36&type=section&id=Note%2010%20Balance%20Sheet%20Offsetting) Derivative assets and liabilities are presented net on the balance sheet using master netting and collateral offsetting, resulting in net assets of $40.81 million and liabilities of $10.71 million - Derivatives subject to a legally enforceable master netting agreement are reported with assets and liabilities offset, resulting in a net position which is further offset by any cash collateral[136](index=136&type=chunk) Derivative Assets and Liabilities Subject to Master Netting Arrangement (in thousands) | Metric | Gross Amounts Recognized | Gross Amounts Subject to Master Netting Arrangements Offset on Balance Sheets | Cash Collateral Received/Pledged | Net Presented Amounts on the Consolidated Balance Sheets | |:-------|:-------------------------|:------------------------------------------------------------------------------|:---------------------------------|:---------------------------------------------------------| | **Derivative assets (Mar 31, 2024)** | $ 102,956 | $ (6,463) | $ (55,681) | $ 40,812 | | **Derivative liabilities (Mar 31, 2024)** | $ 17,172 | $ (6,463) | $ — | $ 10,709 | [Note 11 Commitments, Off-Balance Sheet Arrangements, Legal Proceedings, and Regulatory Matters](index=37&type=section&id=Note%2011%20Commitments,%20Off-Balance%20Sheet%20Arrangements,%20Legal%20Proceedings,%20and%20Regulatory%20Matters) Lending commitments total $10.83 billion, with a $31.78 million allowance for unfunded commitments; legal and regulatory matters include a $2.1 million settlement for overdraft fees Lending-Related Commitments (in thousands) | Commitment Type | Mar 31, 2024 | Dec 31, 2023 | |:----------------|:-------------|:-------------| | Commitments to extend credit | $ 10,828,869 | $ 11,170,147 | | Commercial letters of credit | 4,580 | 3,697 | | Standby letters of credit | 230,396 | 212,029 | Allowance for Unfunded Commitments (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | |:-------|:-------------|:-------------| | Balance at beginning of period | $ 34,776 | $ 38,776 | | Provision for unfunded commitments | (3,000) | (4,000) | | Balance at end of period | $ 31,776 | $ 34,776 | - A settlement of up to **$2.1 million**, including attorneys' fees, was concluded in February 2024 for an arbitration request related to APSN Fees and Representment Fees[154](index=154&type=chunk) - The mortgage repurchase reserve was approximately **$704,000** at March 31, 2024, down from **$835,000** at December 31, 2023[157](index=157&type=chunk) [Note 12 Fair Value Measurements](index=39&type=section&id=Note%2012%20Fair%20Value%20Measurements) Assets and liabilities are measured using a three-level fair value hierarchy, with total selected assets at $36.75 billion and liabilities at $36.55 billion at March 31, 2024 Selected Assets at Fair Value (Mar 31, 2024, in thousands) | Fair Value Hierarchy | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |:---------------------|:----------------|:-----------|:--------|:--------|:--------| | Total selected assets at fair value | $ 38,685,290 | $ 36,754,723 | $ 895,077 | $ 8,021,701 | $ 27,825,445 | Selected Liabilities at Fair Value (Mar 31, 2024, in thousands) | Fair Value Hierarchy | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |:---------------------|:----------------|:-----------|:--------|:--------|:--------| | Total selected liabilities at fair value | $ 36,589,039 | $ 36,554,811 | $ — | $ 9,707,013 | $ 26,847,797 | Significant Unobservable Inputs for Level 3 Measurements (Mar 31, 2024) | Metric | Valuation Technique | Significant Unobservable Input | Range of Inputs | Weighted Average Input Applied | |:-------|:--------------------|:-------------------------------|:----------------|:-------------------------------| | Mortgage servicing rights | Discounted cash flow | Option adjusted spread | 5% - 8% | 5% | | Individually evaluated loans | Appraisals / Discounted cash flow | Collateral / Discount factor | 11% - 56% | 52% | | Interest rate lock commitments to originate residential mortgage loans held for sale | Discounted cash flow | Closing Ratio | 25% - 100% | 86% | [Note 13 Retirement Plans](index=44&type=section&id=Note%2013%20Retirement%20Plans) The Corporation's Retirement Account Plan reported a net periodic pension cost of $(5.11) million in Q1 2024, with no contributions made Net Periodic Pension Cost (RAP) (in thousands) | Metric | 2024 | |:-------|:-----| | Service cost | $ 874 | | Interest cost | 2,719 | | Expected return on plan assets | (8,650) | | Amortization of prior service cost | (53) | | Amortization of actuarial loss | — | | Total net periodic pension cost | $ (5,111) | Net Periodic Benefit Cost (Postretirement Plan) (in thousands) | Metric | 2024 | |:-------|:-----| | Interest cost | $ 18 | | Amortization of prior service cost | (19) | | Amortization of actuarial (gain) | (7) | | Total net periodic benefit cost | $ (8) | - No contributions were made to the RAP during 2023 or the three months ended March 31, 2024[176](index=176&type=chunk) [Note 14 Segment Reporting](index=45&type=section&id=Note%2014%20Segment%20Reporting) The Corporation reports across three segments: Corporate and Commercial Specialty, Community, Consumer, and Business, and Risk Management and Shared Services, with Q1 2024 net incomes of $80.76 million, $75.47 million, and $(75.06) million respectively - The Corporation's three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services[177](index=177&type=chunk)[184](index=184&type=chunk) - Segment results are based on internal management accounting processes, which are highly subjective and not based on authoritative GAAP guidance[178](index=178&type=chunk) Segment Net Income (in thousands) | Segment | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | |:--------|:--------------------------------|:--------------------------------| | Corporate and Commercial Specialty | $ 80,758 | $ 77,234 | | Community, Consumer, and Business | 75,468 | 59,895 | | Risk Management and Shared Services | (75,058) | (33,770) | [Note 15 Accumulated Other Comprehensive Income (Loss)](index=48&type=section&id=Note%2015%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) AOCI decreased to $(209.88) million at March 31, 2024, primarily due to losses from AFS Investment Securities and Cash Flow Hedge Derivatives Components of Accumulated Other Comprehensive Income (Loss) (in thousands) | Metric | AFS Investment Securities | Cash Flow Hedge Derivatives | Defined Benefit Pension and Postretirement Obligations | Accumulated Other Comprehensive Income (Loss) | |:-------|:--------------------------|:----------------------------|:-------------------------------------------------------|:----------------------------------------------| | Balance December 31, 2023 | $ (148,641) | $ 3,080 | $ (25,535) | $ (171,096) | | Other comprehensive (loss) before reclassifications | (29,889) | — | — | (29,889) | | Income tax benefit (expense) | 6,885 | (1,688) | (1,633) | 3,564 | | Net other comprehensive (loss) during period | (20,746) | (16,326) | (1,712) | (38,785) | | Balance March 31, 2024 | $ (169,388) | $ (13,246) | $ (27,247) | $ (209,881) | [Note 16 Leases](index=48&type=section&id=Note%2016%20Leases) The Corporation holds operating and finance leases; Q1 2024 operating lease costs were $1.55 million, with right-of-use assets of $23.31 million and liabilities of $25.81 million Operating and Finance Lease Costs and Cash Flows (in thousands) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | |:-------|:--------------------------------|:--------------------------------| | Operating lease costs | $ 1,545 | $ 1,464 | | Finance lease costs | 23 | 23 | | Operating lease cash flows | 1,844 | 1,828 | | Finance lease cash flows | 23 | 22 | Lease Assets and Liabilities (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | |:-------|:-------------|:-------------| | Operating lease right-of-use asset | $ 23,310 | $ 24,712 | | Finance lease right-of-use asset | 347 | 368 | | Operating lease liability | 25,813 | 27,311 | | Finance lease liability | 361 | 383 | Weighted-Average Lease Terms and Discount Rates (Mar 31, 2024) | Lease Type | Weighted-average lease term (in years) | Weighted-average discount rate | |:-----------|:---------------------------------------|:-------------------------------| | Operating leases | 5.73 | 3.21% | | Finance leases | 4.00 | 1.32% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Associated Banc-Corp's financial condition and operating results, covering key performance indicators, balance sheet, income statement trends, and risk management [Special Note Regarding Forward-Looking Statements](index=50&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This disclaimer notes that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially - The report contains forward-looking statements that are subject to significant risks and uncertainties, and actual results may differ materially from expected results[203](index=203&type=chunk) - The Corporation assumes no obligation to update any forward-looking statements, except as required by federal securities law[203](index=203&type=chunk) [Overview and Performance Summary](index=50&type=section&id=Overview%20and%20Performance%20Summary) Q1 2024 net income was $81.17 million, a recovery from Q4 2023, driven by balance sheet repositioning, with average loans up 2% and deposits up 11% YoY Summary Results of Operations (in thousands, except per share data) | Metric | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |:-------|:-------------|:-------------|:-------------|:-------------|:-------------| | Net income (loss) | $ 81,169 | $ (90,806) | $ 83,248 | $ 87,154 | $ 103,360 | | Net income (loss) available to common equity | 78,294 | (93,681) | 80,373 | 84,279 | 100,485 | | Earnings (loss) per common share - basic | 0.52 | (0.63) | 0.53 | 0.56 | 0.67 | | Earnings (loss) per common share - diluted | 0.52 | (0.62) | 0.53 | 0.56 | 0.66 | | Effective tax rate | 19.78 % | N/M | 18.92 % | 21.26 % | 20.92 % | - Average loans increased **$523 million**, or **2%**, from the first three months of 2023, driven primarily by increases in auto finance and real estate construction loans, partially offset by a decrease in residential mortgage loans[204](index=204&type=chunk) - Net interest income of **$258 million** decreased **$16 million**, or **6%**, from the first three months of 2023, and net interest margin was **2.79%** compared to **3.07%** for the first three months of 2023[205](index=205&type=chunk) - Provision for credit losses was **$24 million**, compared to a provision of **$18 million** for the first three months of 2023, driven by a mix of portfolio loan growth, nominal credit movement, and general macroeconomic trends[205](index=205&type=chunk) [Net Interest Income Analysis](index=52&type=section&id=Net%20Interest%20Income%20Analysis) Fully tax-equivalent net interest income decreased 6% YoY to $261.63 million, with net interest margin at 2.79%, due to higher cost of liabilities Net Interest Income and Margin (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | |:-------|:-------------|:-------------|:-------------| | Fully tax-equivalent net interest income | $ 261,628 | $ 258,033 | $ 278,782 | | Net interest margin | 2.79% | 2.69% | 3.07% | | Net interest income | $ 257,858 | $ 253,403 | $ 274,010 | - The yield on earning assets increased by **70 bp**, while the cost of interest-bearing liabilities increased by **107 bp** from the first three months of 2023, contributing to the decrease in net interest income and net interest margin[213](index=213&type=chunk) - Average interest-bearing liabilities increased **$2.5 billion**, or **9%**, compared to the first three months of 2023, primarily driven by increases in time deposits, interest-bearing demand deposits, network transaction deposits, and savings deposits[214](index=214&type=chunk) - Average FHLB advances decreased **$2.7 billion**, or **64%**, from the first three months of 2023, partially offset by an increase in other short-term funding related to utilizing the BTFP[214](index=214&type=chunk) [Provision for Credit Losses](index=53&type=section&id=Provision%20for%20Credit%20Losses) The Q1 2024 provision for credit losses was $24 million, up from $18 million YoY, driven by loan growth, credit movement, and macroeconomic trends - The provision for credit losses was **$24 million** for the first three months of 2024, compared to **$18 million** for the first three months of 2023[205](index=205&type=chunk) - The increase in provision for credit losses was driven by a mix of portfolio loan growth, nominal credit movement, and general macroeconomic trends[205](index=205&type=chunk) - The forecast used for March 31, 2024, was the Moody's baseline scenario from February 2024, reviewed against the March 2024 baseline scenario with no material updates[215](index=215&type=chunk) [Noninterest Income](index=53&type=section&id=Noninterest%20Income) Total noninterest income increased 5% YoY to $64.99 million, driven by investment securities gains and higher wealth management fees Noninterest Income (in thousands) | Metric | Mar 31, 2024 | Mar 31, 2023 | Change (%) | |:-------|:-------------|:-------------|:-----------| | Wealth management fees | $ 21,694 | $ 20,189 | 7% | | Total fee-based revenue | 49,802 | 48,045 | 4% | | Capital markets, net | 4,050 | 5,083 | (20)% | | Investment securities gains (losses), net | 3,879 | 51 | N/M | | Total noninterest income (loss) | $ 64,985 | $ 62,073 | 5% | - Wealth management fees increased **$2 million** from the first three months of 2023, mainly driven by increased assets under management[218](index=218&type=chunk) - Investment securities gains (losses), net increased **$4 million** from the first three months of 2023, as a result of the sale of the Corporation's remaining Visa B shares[218](index=218&type=chunk) [Noninterest Expense](index=54&type=section&id=Noninterest%20Expense) Total noninterest expense increased 5% YoY to $197.66 million, primarily due to a $7 million rise in FDIC assessment expense Noninterest Expense (in thousands) | Metric | Mar 31, 2024 | Mar 31, 2023 | Change (%) | |:-------|:-------------|:-------------|:-----------| | Personnel | $ 119,395 | $ 116,420 | 3% | | Technology | 26,200 | 23,598 | 11% | | FDIC assessment | 13,946 | 6,875 | 103% | | Total noninterest expense | $ 197,657 | $ 187,412 | 5% | - FDIC expense increased **$7 million** from the first three months of 2023, primarily driven by the special assessment applied to the Corporation and other banks relating to the FDIC's increased estimated loss attributable to the protection of depositors at Silicon Valley Bank and Signature Bank[219](index=219&type=chunk) - Personnel expense increased **$3 million** from the first three months of 2023, largely as a result of increased fringe benefit expense[219](index=219&type=chunk) - Technology expense increased **$3 million** from the first three months of 2023, driven by digital investments tied to our strategic initiatives[219](index=219&type=chunk) [Income Taxes](index=54&type=section&id=Income%20Taxes) Q1 2024 income tax expense was $20.02 million, with an effective tax rate of 19.78%, driven by lower pretax income - Income tax expense was **$20.02 million** for the three months ended March 31, 2024, compared to **$27.34 million** for the three months ended March 31, 2023[220](index=220&type=chunk) - The Corporation's effective tax rate from continuing operations was **19.78%** for Q1 2024, down from **20.92%** for Q1 2023[220](index=220&type=chunk) - The decreases in income tax expense and effective tax rate were primarily driven by a decrease in pretax income, partially offset by an increase in nondeductible expenses[220](index=220&type=chunk) - The Corporation expects a full year effective tax rate of **19% to 21%**, assuming no change in the statutory corporate tax rate[220](index=220&type=chunk) [Balance Sheet Analysis](index=55&type=section&id=Balance%20Sheet%20Analysis) Total assets increased to $41.1 billion, with loans growing to $29.5 billion and deposits to $33.7 billion, while FHLB advances decreased significantly - Total assets were **$41.1 billion** at March 31, 2024, up **$121 million** from December 31, 2023[224](index=224&type=chunk) - Loans of **$29.5 billion** at March 31, 2024, were up **$278 million**, or **1%**, from December 31, 2023[225](index=225&type=chunk) - AFS investment securities, at fair value, were **$3.7 billion** at March 31, 2024, up **$123 million**, or **3%**, from December 31, 2023[225](index=225&type=chunk) - Total deposits of **$33.7 billion** at March 31, 2024, were up **$267 million**, or **1%**, from December 31, 2023[226](index=226&type=chunk) - FHLB advances were **$1.3 billion** at March 31, 2024, down **$607 million**, or **31%**, from December 31, 2023[226](index=226&type=chunk) - BTFP funding was **$500 million** at March 31, 2024, used to pay down FHLB advances[226](index=226&type=chunk) [Loans and Credit Risk](index=55&type=section&id=Loans%20and%20Credit%20Risk) The $29.49 billion loan portfolio is 62% commercial, with 66% of total loans being floating or re-pricing within one year, and credit risk is managed through diversification Period End Loan Composition (in thousands) | Loan Type | Mar 31, 2024 Amount | % of Total | |:----------|:--------------------|:-----------| | Commercial and industrial | $ 9,858,329 | 33 % | | Commercial real estate — owner occupied | 1,095,894 | 4 % | | Commercial real estate — investor | 5,035,195 | 17 % | | Real estate construction | 2,287,041 | 8 % | | **Total commercial** | **18,276,460** | **62 %** | | Residential mortgage | 7,868,180 | 27 % | | Auto finance | 2,471,257 | 8 % | | Home equity | 619,764 | 2 % | | Other consumer | 258,603 | 1 % | | **Total consumer** | **11,217,802** | **38 %** | | **Total loans** | **$ 29,494,263** | **100 %** | - At March 31, 2024, **$19.6 billion**, or **66%**, of the loans outstanding and **$16.5 billion**, or **90%**, of the commercial loans outstanding were floating rate, adjustable rate, re-pricing within one year, or maturing within one year[230](index=230&type=chunk) - No significant concentrations existed in the Corporation's portfolio in excess of **10%** of total loan exposure at March 31, 2024[232](index=232&type=chunk) - The Corporation's current lending standards for CRE and real estate construction lending include a maximum standard for LTV of **80%**, with lower limits for higher risk types like raw land (**50% LTV maximum**)[240](index=240&type=chunk) [Nonperforming Assets](index=59&type=section&id=Nonperforming%20Assets) Nonperforming assets increased to $188.03 million, driven by a 20% rise in nonaccrual loans to $178.35 million, with the nonaccrual loan ratio at 0.60% Nonperforming Assets (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | |:-------|:-------------|:-------------|:-------------| | Total nonaccrual loans | $ 178,346 | $ 148,997 | $ 117,569 | | OREO | 8,437 | 10,506 | 15,184 | | Repossessed assets | 1,241 | 919 | 92 | | **Total nonperforming assets** | **$ 188,025** | **$ 160,421** | **$ 132,845** | | Accruing loans past due 90 days or more | $ 2,417 | $ 21,689 | $ 1,703 | | Restructured loans (accruing) | $ 2,457 | $ 2,719 | $ 763 | | Nonaccrual loans to total loans | 0.60 % | 0.51 % | 0.40 % | | NPAs to total assets | 0.46 % | 0.39 % | 0.33 % | - Total nonaccrual loans increased **$29 million**, or **20%**, from December 31, 2023, driven by increases in nonaccrual loans within CRE-investor lending and commercial and industrial lending[261](index=261&type=chunk) [Allowance for Credit Losses on Loans](index=60&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans) ACLL increased to $387.78 million, reflecting a $24 million provision for credit losses and 1% loan growth, with management deeming the level appropriate Allowance for Credit Losses on Loans (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | |:-------|:-------------|:-------------|:-------------| | Total ACLL | $ 387,782 | $ 385,870 | $ 366,208 | | Provision for credit losses on loans | 24,000 | 21,000 | 18,000 | | Total net (charge offs) recoveries | (22,088) | (15,701) | (3,289) | | ACLL to total loans | 1.31 % | 1.32 % | 1.25 % | | ACLL to net charge offs (annualized) | 4.4x | 6.2x | 27.5x | - Total loans increased **$278 million**, or **1%**, from December 31, 2023, primarily due to growth in auto finance and commercial and business lending, partially offset by a decrease in CRE - investor lending[260](index=260&type=chunk) - Total nonaccrual loans increased **$29 million**, or **20%**, from December 31, 2023, driven by increases in nonaccrual loans within CRE-investor lending and commercial and industrial lending[261](index=261&type=chunk) - YTD net charge offs increased **$19 million** from March 31, 2023, primarily driven by an increase in net charge offs within commercial and industrial lending[261](index=261&type=chunk) [Deposits and Customer Funding](index=63&type=section&id=Deposits%20and%20Customer%20Funding) Total deposits increased 1% QoQ to $33.71 billion, driven by brokered CDs and interest-bearing demand, with uninsured deposits at 22.9% of total Period End Deposit and Customer Funding Composition (in thousands) | Deposit Type | Mar 31, 2024 Amount | % of Total | |:-------------|:--------------------|:-----------| | Noninterest-bearing demand | $ 6,254,135 | 19 % | | Savings | 5,124,639 | 15 % | | Interest-bearing demand | 8,747,127 | 26 % | | Money market | 6,721,674 | 20 % | | Brokered CDs | 3,931,230 | 12 % | | Other time deposits | 2,934,352 | 9 % | | **Total deposits** | **$ 33,713,158** | **100 %** | | Estimated uninsured and uncollateralized deposits (% of total deposits) | 22.9 % | | - Total deposits increased **$267 million**, or **1%**, from December 31, 2023, and increased **$3.4 billion**, or **11%**, from March 31, 2023[264](index=264&type=chunk) - Estimated uninsured and uncollateralized deposits, excluding intercompany deposits, were **22.9%** of total deposits at March 31, 2024, compared to **22.7%** at December 31, 2023[267](index=267&type=chunk) [Liquidity](index=63&type=section&id=Liquidity) Total available liquidity was $12.01 billion, with $8.89 billion available within one business day, and a 115% coverage ratio for uninsured deposits - At March 31, 2024, the Corporation was in compliance with its internal liquidity objectives and had sufficient asset-based liquidity to meet its obligations even under a stressed scenario[266](index=266&type=chunk) Liquidity Sources and Uninsured Deposit Coverage Ratio (in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | |:-------|:-------------|:-------------|:-------------| | Available FHLB Chicago capacity | $ 7,035,768 | $ 5,985,385 | $ 3,453,813 | | Available Federal Reserve Bank discount window capacity | 1,438,992 | 1,433,655 | 1,799,453 | | Funding available within one business day | 8,894,314 | 8,363,353 | 6,402,351 | | Total available liquidity | $ 12,010,827 | $ 11,051,865 | $ 13,821,744 | | Uninsured and uncollateralized deposits | $ 7,710,911 | $ 7,586,047 | $ 7,938,690 | | Coverage ratio of uninsured and uncollateralized deposits with secured funding available within one business day | 115 % | 110 % | 81 % | | Coverage ratio of uninsured and uncollateralized deposits with total funding | 156 % | 146 % | 174 % | - For the three months ended March 31, 2024, net cash provided by operating and financing activities was **$155 million** and **$49 million**, respectively, while net cash used in investing activities was **$275 million**, for a net decrease in cash and cash equivalents of **$72 million** since year-end 2023[272](index=272&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market and interest rate risk are managed centrally, with EAR showing a 1.7% increase for a 100 bp rate rise, and MVE sensitivity indicating a (9.5)% decrease - The primary goal of interest rate risk management is to control exposure to interest rate risk within policy limits approved by the Board of Directors[276](index=276&type=chunk) - The Corporation's EAR profile is asset sensitive at March 31, 2024, meaning a higher yield curve generally adds to income[277](index=277&type=chunk) Estimated % Change in Rate Sensitive Earnings at Risk Over 12 Months | Gradual Rate Change | Mar 31, 2024 Dynamic Forecast | Mar 31, 2024 Static Forecast | |:--------------------|:------------------------------|:-----------------------------| | 100 bp increase in interest rates | 1.7 % | 1.6 % | | 100 bp decrease in interest rates | (1.0)% | (1.0)% | Estimated % Change in Market Value of Equity (MVE) | Instantaneous Rate Change | Mar 31, 2024 | |:--------------------------|:-------------| | 100 bp increase in interest rates | (9.5)% | | 100 bp decrease in interest rates | 9.1 % | - The MVE measure in the **200 bp increase** in interest rates scenario is outside of the policy limit, which has been reported to the Corporation's Board[283](index=283&type=chunk) [Contractual Obligations, Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities](index=66&type=section&id=Contractual%20Obligations,%20Commitments,%20Off-Balance%20Sheet%20Arrangements,%20and%20Contingent%20Liabilities) Total contractual obligations were $9.53 billion, with $7.90 billion due within one year, including time deposits, short-term funding, and FHLB advances Significant Contractual Obligations and Other Commitments (in thousands) | Obligation Type | One Year or Less | One to Three Years | Three to Five Years | Over Five Years | Total | |:----------------|:-----------------|:-------------------|:--------------------|:----------------|:------| | Time deposits | $ 6,744,548 | $ 103,594 | $ 17,435 | $ 5 | $ 6,865,582 | | Short-term funding | 765,671 | — | — | — | 765,671 | | FHLB advances | 138,000 | 997,989 | 196,981 | 440 | 1,333,411 | | Other long-term funding | 249,913 | 180 | 92 | 285,869 | 536,055 | | Operating leases | 5,578 | 9,367 | 6,875 | 3,994 | 25,813 | | **Total** | **$ 7,903,710** | **$ 1,111,130** | **$ 221,383** | **$ 290,308** | **$ 9,526,532** | [Capital](index=66&type=section&id=Capital) The Corporation's capital ratios exceeded regulatory minimums, with CET1 at 9.43%, Tier 1 at 10.02%, and Total capital at 12.08% at March 31, 2024 - At March 31, 2024, the capital ratios of the Corporation and its banking subsidiaries were in excess of regulatory minimum requirements[286](index=286&type=chunk) Capital Ratios | Metric | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | |:-------|:-------------|:-------------|:-------------| | CET1 capital ratio | 9.43 % | 9.39 % | 9.45 % | | Tier 1 capital ratio | 10.02 % | 9.99 % | 10.05 % | | Total capital ratio | 12.08 % | 12.21 % | 12.22 % | | Tier 1 leverage ratio | 8.24 % | 8.06 % | 8.46 % | [Non-GAAP Measures](index=68&type=section&id=Non-GAAP%20Measures) Non-GAAP measures include tangible common equity to tangible assets at 7.08% and return on average tangible common equity at 11.31% for Q1 2024 Selected Equity and Performance Ratios (Non-GAAP) | Metric | Mar 31, 2024 | |:-------|:-------------| | Tangible common equity / tangible assets | 7.08 % | | Return on average tangible common equity | 11.31 % | | Return on average CET1 | 10.27 % | | Fully tax-equivalent efficiency ratio | 59.63 % | Adjusted Net Income Reconciliation (in thousands) | Metric | Mar 31, 2024 | |:-------|:-------------| | Net income | $ 81,169 | | Other intangible amortization, net of tax | 1,652 | | Adjusted net income | $ 82,821 | [Sequential Quarter Results](index=69&type=section&id=Sequential%20Quarter%20Results) Q1 2024 net income was $81 million, a recovery from Q4 2023, with net interest income up 1% and noninterest income surging due to repositioning - Net income for Q1 2024 was **$81 million**, compared to a net loss of **$91 million** for Q4 2023, due to the balance sheet repositioning[292](index=292&type=chunk) - Fully tax-equivalent net interest income for Q1 2024 was **$262 million**, **$4 million**, or **1%**, higher than Q4 2023, with net interest margin up **10 bp** to **2.79%**[293](index=293&type=chunk) - Noninterest income for Q1 2024 was **$65 million**, up **$196 million** from Q4 2023, primarily due to one-time items related to the balance sheet repositioning[294](index=294&type=chunk) - Noninterest expense for Q1 2024 was **$198 million**, down **$42 million**, or **17%**, from Q4 2023, driven primarily by the FDIC special assessment[294](index=294&type=chunk) [Segment Review](index=69&type=section&id=Segment%20Review) Corporate and Commercial Specialty revenue rose 7% YoY to $183.62 million, Community, Consumer, and Business revenue increased 10% YoY to $212.85 million, while Risk Management and Shared Services revenue decreased $45 million Segment Total Revenue and Net Income (in thousands) | Segment | Mar 31, 2024 Total Revenue | Mar 31, 2024 Net Income | Mar 31, 2023 Total Revenue | Mar 31, 2023 Net Income | |:--------|:---------------------------|:------------------------|:---------------------------|:------------------------| | Corporate and Commercial Specialty | $ 183,617 | $ 80,758 | $ 170,860 | $ 77,234 | | Community, Consumer, and Business | 212,845 | 75,468 | 194,310 | 59,895 | | Risk Management and Shared Services | (73,620) | (75,058) | (29,087) | (33,770) | - Corporate and Commercial Specialty segment's total revenue increased **$13 million** from Q1 2023, primarily attributable to higher loan volumes and interest rates driving net interest income higher[298](index=298&type=chunk) - Risk Management and Shared Services segment's total revenue decreased **$45 million** from Q1 2023, primarily driven by increased interest expense as a result of holding more brokered CDs and other short term funding[300](index=300&type=chunk) - Risk Management and Shared Services segment's noninterest expense increased **$7 million** from Q1 2023, driven by the FDIC special assessment[301](index=301&type=chunk) [Critical Accounting Estimates](index=71&type=section&id=Critical%20Accounting%20Estimates) No changes in critical accounting estimates since December 31, 2023, with ACLL determination remaining highly susceptible to change - There have been no changes in the Corporation's application of critical accounting estimates since December 31, 2023[302](index=302&type=chunk) - The determination of the **ACLL** is particularly susceptible to significant change, as it requires management to make estimates and assumptions[302](index=302&type=chunk) [Recent Developments](index=71&type=section&id=Recent%20Developments) The Board declared regular quarterly cash dividends for common and preferred stocks, payable on June 17, 2024 - On April 30, 2024, the Board of Directors declared a regular quarterly cash dividend of **$0.22 per common share**, payable on June 17, 2024[303](index=303&type=chunk) - Regular quarterly cash dividends were also declared for Series E Preferred Stock (**$0.3671875 per depositary share**) and Series F Preferred Stock (**$0.3515625 per depositary share**), payable on June 17, 2024[303](index=303&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the detailed market and interest rate risk disclosures found in Item 2 - Information required by this item is set forth in Item 2 under the captions Quantitative and Qualitative Disclosures about Market Risk and Interest Rate Risk[304](index=304&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The Corporation's disclosure controls and procedures were evaluated and concluded to be effective as of March 31, 2024[307](index=307&type=chunk) - No changes were made to the Corporation's internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Corporation's internal control over financial reporting[307](index=307&type=chunk) PART II. Other Information This part provides additional information on legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to legal proceedings information detailed in Note 11 of the consolidated financial statements - The information required by this item is set forth in Part I, Item 1 under Note 11 Commitments, Off-Balance Sheet Arrangements, Legal Proceedings, and Regulatory Matters of the notes to consolidated financial statements[309](index=309&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the Risk Factors previously described in the Corporation's 2023 Annual Report on Form 10-K - There have been no material changes in the Risk Factors described in the Corporation's 2023 Annual Report on Form 10-K[310](index=310&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation repurchased $23 million of common stock in Q1 2024, with $61 million remaining under the 2021 authorization - During the first quarter of 2024, the Corporation repurchased **$23 million** of common stock, including **$18 million** of open market purchases and **$5 million** of repurchases related to tax withholding on equity compensation[311](index=311&type=chunk) Common Stock Purchases (Q1 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |:-------|:---------------------------------|:-----------------------------|:---------------------------------------------------------------|:-----------------------------------------------------------------------------| | Total | 1,126,299 | $ 20.30 | 900,000 | 2,852,467 | - At March 31, 2024, there remained **$61 million** authorized to be repurchased under the Board of Directors' 2021 **$100 million** authorization[312](index=312&type=chunk) [Item 5. Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024 - During the three months ended March 31, 2024, no director or 'officer' of the Corporation adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'[314](index=314&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and interactive data files (XBRL) - Exhibits include Certifications Under Section 302 and Section 906 of Sarbanes-Oxley by the Chief Executive Officer and Chief Financial Officer[316](index=316&type=chunk) - Interactive data files (XBRL) are provided for the unaudited consolidated financial statements and notes, and the cover page is formatted in Inline XBRL[317](index=317&type=chunk) [Signatures](index=75&type=section&id=Signatures) The report is signed by the President and CEO, CFO, and Chief Accounting Officer of Associated Banc-Corp on April 30, 2024 - The report is signed by Andrew J. Harmening (President and Chief Executive Officer), Derek S. Meyer (Chief Financial Officer), and Tammy C. Stadler (Chief Accounting Officer) on April 30, 2024[321](index=321&type=chunk)

GREEN BAY, Wis., April 30, 2024 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated") today announced the results of the actions taken at its 2024 Annual Meeting of Shareholders. Annual Meeting Results The following directors were elected: John (Jay) B. Williams, chairman, Associated Banc-Corp, and chairman, Church Mutual Insurance Company Andrew J. Harmening, president and chief executive officer, Associated Banc-Corp R. Jay Gerken, director of 17 mutual funds associated with Sanford C. Bernstei ...

Associated Banc-Corp’s (ASB) first-quarter 2024 earnings of 52 cents per share beat the Zacks Consensus Estimate of 49 cents. However, the bottom line compared unfavorably with the prior-year quarter’s earnings of 66 cents. The results in the reported quarter include the FDIC special assessment charge.Results benefited from higher non-interest income and a rise in loans and deposit balance. However, a decline in net interest income (NII) and an increase in expenses and provisions were headwinds.Net income a ...

Financial Data and Key Metrics Changes - The company reported diluted GAAP earnings of $0.52 per share for Q1 2024, indicating underlying strength in core earnings despite a challenging operating environment [12][48] - Core customer deposits grew by 2% in Q1, marking the third consecutive quarter of deposit growth, with a total increase of $1.4 billion since mid-2023 [13][25] - Net interest income (NII) for Q1 was $258 million, a $4 million increase from the previous quarter, with a net interest margin (NIM) increase of 10 basis points to 2.79% [28][30] Business Line Data and Key Metrics Changes - Loans grew by $278 million in Q1, driven by growth in the prime/super prime auto portfolio and commercial and industrial (C&I) segments [14][26] - Non-interest income was $65 million, up $3 million from the same period last year, but down $5 million from the previous quarter [15][34] - Non-interest expense for Q1 was $198 million, which included $8 million in FDIC special assessment costs, reflecting a focus on expense discipline [36] Market Data and Key Metrics Changes - The company noted resilience in its Midwestern markets, with unemployment levels in Wisconsin and Minnesota remaining at or below 3% [8] - The consumer remains relatively healthy despite rising prices, and commercial customers are exploring investments while being cautious of current challenges [8] Company Strategy and Development Direction - The company is focused on executing Phase 2 of its strategic plan, which includes key hires, product launches, and enhancing customer experiences [11][20] - The strategic plan aims for total loan growth of 4% to 6%, core customer deposit growth of 3% to 5%, and net interest income growth of 2% to 4% for 2024 [23][48] - The company emphasizes quality, relationship-focused loan growth to enhance profitability and reduce reliance on lower-yielding assets [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position due to disciplined credit practices and a strong foundation in stable markets [8][12] - Despite macroeconomic uncertainties, the company expects to see continued progress throughout the year, with a focus on maintaining expense discipline [12][48] Other Important Information - The company was recognized by J.D. Power for retail banking satisfaction in the Upper Midwest and received awards for workplace culture [10][18] - The allowance for credit losses increased by $2 million to $388 million, reflecting loan growth in select areas [40] Q&A Session Summary Question: Margin guidance and rate cut assumptions - Management indicated that margin guidance remains unchanged despite the removal of three rate cut assumptions, suggesting a neutral impact from potential rate changes [50][51] Question: Non-interest-bearing deposit growth - The company expects non-interest-bearing deposits to stabilize around $5.8 billion to $5.9 billion, with a goal to grow closer to $6 billion by year-end [54][55] Question: Savings and money market growth drivers - Growth in savings and money market accounts is attributed to increased household deposits and expansion in the mass affluent segment [57][58] Question: Fee income and capital markets outlook - Management remains confident in the fee income range despite fluctuations, expecting a rebound in capital markets activity in the second half of the year [69][71] Question: Expense trajectory and hiring plans - Expenses are expected to rise gradually throughout the year as the company continues to invest in marketing and technology while filling key positions [76][78] Question: Customer demand and loan growth expectations - Management noted steady growth in commercial loans, driven by quality hires and a strong pipeline of customer conversations [80][81] Question: Exposure to the trucking industry - The company's exposure to the trucking industry is limited, with $700 million in commitments, and management sees no emerging risks in this area [83]

Associated Banc-Corp (ASB) reported $326.61 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 4.2%. EPS of $0.52 for the same period compares to $0.66 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $327.46 million, representing a surprise of -0.26%. The company delivered an EPS surprise of +6.12%, with the consensus EPS estimate being $0.49.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...