PR Newswire
GREEN BAY, Wis., April 19, 2018
GREEN BAY, Wis., April 19, 2018 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $67 million, or $0.40 per common share for the quarter ended March 31, 2018. This compares to net income available to common equity of $54 million, or $0.35 per common share for the quarter ended March 31, 2017.
"The Bank Mutual acquisition was integral to Associated's results in the quarter. With the merger closing on February 1, we added $1.9 billion of loans and $1.8 billion of deposits to our franchise. The integration is going well and we look forward to introducing Bank Mutual customers to Associated's products and services over the next few months," said President and CEO Philip B. Flynn. "In the first quarter, credit dynamics continued to be favorable and fee income increased. Our conversations with customers have been upbeat, and our growth outlook is optimistic."
FIRST QUARTER 2018 SUMMARY (all comparisons to the first quarter of 2017)
1This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide greater understanding of ongoing operations and enhance comparability of results with prior periods. See page 8 of the attached tables for a reconciliation of GAAP financial measures to non-GAAP financial measures which exclude acquisition related costs.
Loans
First quarter 2018 average loans of $22.1 billion were up 10%, or $2.0 billion from the first quarter of 2017 and were up $1.2 billion from the fourth quarter of 2017. The Bank Mutual acquisition added $1.9 billion of loans.
With respect to first quarter 2018 average balances by loan category:
Deposits
First quarter 2018 average deposits of $23.7 billion were up $2.2 billion, or 10% from the year ago quarter and were up $1.4 billion, or 6% from the fourth quarter of 2017. The Bank Mutual acquisition supplied $1.8 billion of deposits.
With respect to first quarter 2018 average balances by deposit category:
Net Interest Income and Net Interest Margin
First quarter 2018 net interest income of $210 million was up 16%, or $30 million from the year ago quarter, with net interest margin increasing 8 basis points to 2.92%. First quarter 2018 net interest income increased 12%, or $23 million from the fourth quarter of 2017.
Noninterest Income
First quarter 2018 total noninterest income of $90 million increased $11 million from the year ago quarter and increased $6 million from the prior quarter.
With respect to first quarter 2018 noninterest income line items:
Noninterest Expense
First quarter 2018 total noninterest expense of $213 million increased 23%, or $39 million from the year ago quarter and increased $31 million from the fourth quarter of 2017. First quarter 2018 noninterest expense includes $21 million of Bank Mutual acquisition related costs.
With respect to first quarter 2018 noninterest expense line items:
Taxes
The first quarter 2018 effective tax rate was 20% compared to 27% in the year ago quarter. The decrease is primarily due to the Tax Cut and Jobs Act signed into law on December 22, 2017. The Company continues to expect its 2018 effective tax rate to be in the range of 20%-22%.
Credit
The first quarter provision for credit losses was zero, down from $9 million from the year ago quarter and unchanged from the prior quarter.
With respect to first quarter 2018 credit quality:
Capital
The Company's capital position remains strong, with a CET1 capital ratio of 10.5% at March 31, 2018. The Company's capital ratios continue to be in excess of the Basel III "well-capitalized" regulatory benchmarks on a fully phased in basis.
During the quarter, the Company repurchased approximately 1.1 million shares, or $26 million, of common stock, at an average price of $23.90 per share.
FIRST QUARTER 2018 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 19, 2018. 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 first quarter 2018 earnings call. The first quarter 2018 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 $33 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 more than 270 banking locations serving more than 110 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. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
Investor Contact:
Robb Timme, Vice President, Investor Relations
920-491-7059
Media Contact:
Jennifer Kaminski, Vice President, Public Relations Senior Manager
920-491-7576
SOURCE Associated Banc-Corp
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.