Associated Banc-Corp (ASBCW) has reported a 32.29 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $56.27 million, or $0.35 a share in the quarter, compared with $42.53 million, or $0.27 a share for the same period last year.
Revenue during the quarter grew 6.77 percent to $251.10 million from $235.18 million in the previous year period. Net interest income for the quarter rose 4.82 percent over the prior year period to $180.27 million. Non-interest income for the quarter fell 4.04 percent over the last year period to $79.83 million.
Associated Banc-Corp has made provision of $9 million for loan losses during the quarter, down 55 percent from $20 million in the same period last year.
Net interest margin improved 3 basis points to 2.84 percent in the quarter from 2.81 percent in the last year period. Efficiency ratio for the quarter improved to 64.89 percent from 67.44 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"The quarter's margin expansion coupled with higher residential mortgage and steady commercial real estate loan growth contributed to a 30% year over year increase in earnings per common share. We continued to show progress across our fee businesses while holding expenses flat. Year over year results were also supported by an improving credit environment." said president and chief executive officer Philip B. Flynn. "We are in a good place - strongly positioned and fully committed to a path of continued disciplined growth. We look forward to delivering against our full year guidance."
Deposits stood at $21,828.04 million as on Mar. 31, 2017, up 5.52 percent compared with $20,685.46 million on Mar. 31, 2016.
Loans to deposits ratio was 92.30 percent for the quarter, down from 92.95 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $5,338.21 million or 24.46 percent of total deposits on Mar. 31, 2017, compared with $5,272.68 million or 25.49 percent of total deposits on Mar. 31, 2016.
Investments stood at $5,904.64 million as on Mar. 31, 2017, down 3.77 percent or $231.11 million from year-ago. Shareholders equity was at $3,144.79 million as on Mar. 31, 2017.
Return on average assets moved up 17 basis points to 0.79 percent in the quarter from 0.62 percent in the last year period.
Credit quality improves
Associated Banc-Corp recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 9.09 percent or $27.50 million to $274.95 million on Mar. 31, 2017 from $302.45 million on Mar. 31, 2016. Nonperforming assets to total loans was 1.36 percent in the quarter, down from 1.57 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.94 percent in the quarter, down from 1.07 percent in the last year period.
Capital ratios improve
Associated Banc-Corp recorded an improvement in capital ratios during the quarter. Tier-1 leverage ratio stood at 8.05 percent for the quarter, up from 7.55 percent for the previous year quarter. Equity to assets ratio was 10.80 percent for the quarter, up from 10.58 percent for the previous year quarter. Book value per share was $19.42 for the quarter, up 2.43 percent or $0.46 compared to $18.96 for the same period last year.
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