ASSOCIATED BANC CORP 
By GREEN BAY, Wis., Jan. 17, 2013 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $45 million, or $0.26 per common share, for the quarter ended December 31, 2012. This compares to net income to common shareholders of $40 million, or $0.23 per common share, for the quarter ended December 31, 2011.
For the year ended December 31, 2012, the Company reported net income to common shareholders of $174 million, or $1.00 per common share. This compares to net income to common shareholders of $115 million, or $0.66 per common share for the year ended December 31, 2011.
"This year's strong performance was the result of the commitment of our colleagues to serving the needs of customers across the footprint," said President and CEO Philip B. Flynn. "We are proud to have restored Associated to its position as a strong Upper Midwestern franchise and we are pleased to have been able to deliver value for our shareholders over the course of 2012. We continue to be encouraged by the momentum throughout the company and we look forward to the opportunity to continue to grow Associated."
HIGHLIGHTS
-- Full year 2012 net income to common shareholders of $174 million, up 51%
from a year ago
-- Fourth quarter net income to common shareholders of $45 million
-- Return on Tier 1 common equity for full year 2012 of 9.5%, compared to
6.7% for full year 2011
-- Loan balances have grown by $1.4 billion, or 10%, from a year ago to
$15.4 billion
-- Loans increased by $445 million, or 3%, during the fourth quarter
-- Total commercial loan balances grew by $426 million, or 5% from the
third quarter and accounted for the majority of the quarter's net
loan growth
-- Average deposits for the fourth quarter increased by $1.8 billion, or
12% from a year ago to $16.7 billion
-- Average deposits increased by $1.0 billion, or 7%, from the third
quarter
-- Credit quality continued to improve with net charge offs, nonaccrual
loans, and potential problem loans all declining from the prior year
-- Quarterly dividend increased to $0.08 per common share in the fourth
quarter, up from $0.05 per common share
-- During the fourth quarter, the Company repurchased $30 million, or
approximately 2 million shares, of common stock at an average cost of
$12.70
-- Capital ratios remain very strong with a Tier 1 common equity ratio of
11.58%
FOURTH QUARTER 2012 FINANCIAL RESULTS
Loans
At December 31, 2012, the Company's loan portfolio was $15.4 billion, up $445 million, or 3%, from $15.0 billion at September 30, 2012. For full year 2012, loans increased by $1.4 billion, or 10%, from $14.0 billion a year ago.
Commercial and business lending balances increased by $262 million, or 5% from the prior quarter. Commercial real estate lending balances grew by $164 million, or 5% on a linked-quarter basis. The residential mortgage portfolio grew by $172 million, or 5%, during the quarter while the retail portfolio, which includes home equity and installment loan balances, experienced net run-off of $153 million during the quarter.
Deposits
Average deposits of $16.7 billion were up $1.0 billion, or 7%, from the third quarter. On a full year basis, average deposits increased by $1.2 billion, or 8%, from a year ago.
Total deposits of $16.9 billion at the end of the fourth quarter were up $489 million, or 3%, compared to third quarter levels. Period-end noninterest-bearing account balances grew by $439 million, or 10%, from the third quarter, and have increased by $831 million, or 21%, from a year ago. The increase in fourth quarter noninterest-bearing deposit balances was partially the result of customers' seasonal year-end account activity. Interest-bearing demand balances increased by $324 million, or 15%, from the third quarter, and have increased by $257 million, or 11%, from a year ago. During the quarter, the Company continued to reduce its reliance on higher cost funding sources, including term repurchase agreements, which were down $334 million, and brokered and other CD balances, which were down $103 million from the prior quarter.
Net Interest Income and Net Interest Margin
Fourth quarter net interest income of $161 million increased by $6 million, or 4%, compared to the prior quarter and was up 6% compared to the year-ago quarter. Net interest income for the fourth quarter included $2 million of interest related to a tax refund. For the full year, net interest income of $626 million increased by $13 million, or 2% from the prior year.
The net interest margin for the fourth quarter was 3.32%, which included a 3 basis point benefit related to interest received on the tax refund. On a full year basis, the net interest margin was 3.30% compared to 3.26% for full year 2011.
Fourth quarter net interest margin benefited from an 11 basis point decline in the cost of deposits and interest-bearing liabilities, partially offset by a 4 basis point decline in loan yields, contributing to a net increase in overall net interest margin of 6 basis points compared to the prior quarter.
Noninterest Income and Expense
Noninterest income for the quarter was $78 million, down $3 million, or 4%, from the third quarter. Noninterest income for the full year was $313 million, up 15% from full year 2011.
The decline in fourth quarter fee income was primarily attributable to the establishment of a $3 million repurchase reserve against previously sold mortgage loans that reduced net mortgage banking income during the quarter.
Total noninterest expense for the quarter ended December 31, 2012 was $176 million, up $7 million, or 4%, from the third quarter. For the full year, noninterest expense increased by 5% to $682 million.
Personnel and occupancy expenses increased by $6 million during the fourth quarter which included $4 million of severance cost and lease breakage expense related to the Company's recently announced efficiency initiatives.
Credit
The Company reported another quarter of improving credit quality with nonaccrual loans down 9%, to $253 million compared to the third quarter, and down 29% from a year ago. Nonaccrual loans to total loans now stand at 1.64% and have improved for the 11(th) consecutive quarter. Nonperforming assets declined 8% from the prior quarter to $288 million, and have declined 28% from a year ago.
Net charge offs of $21 million for the fourth quarter were up $3 million from the third quarter, and were $2 million lower than a year ago. For the full year, net charge offs declined by 44% to $84 million.
Fourth quarter provision for loan losses was $3 million. The Company's allowance for loan losses was $297 million, representing an allowance equal to 1.93% of loans and representing a coverage ratio of over 117% of nonaccrual loans at December 31, 2012.
Taxes
Income tax expense was lower by $7 million compared to the third quarter, due to a net $5 million income tax benefit recorded during the period, primarily related to the reversal of certain prior years' tax reserves.
Capital Ratios
The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.58% at December 31, 2012. The Company's capital ratios continue to be well in excess of both current and proposed "well-capitalized" regulatory benchmarks.
FOURTH QUARTER 2012 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 17, 2013. Interested parties can listen to the call live on the Internet through the investor relations section of the Company's website, http://investor.associatedbank.com/ or by dialing 877-317-6016. The slide presentation for the call will be available on the Company's website just prior to the call. The number for international callers is 412-317-6016. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2012 earnings call.
An audio archive of the webcast will be available on the Company's website. A telephone replay will be available two hours after the completion of the call through 8:00 a.m. CT on February 18, 2013, by dialing 877-344-7529 and entering the conference ID number 10022452. The replay number for international callers is 412-317-0088.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NASDAQ: ASBC) has total assets of $24 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services through more than 250 banking locations serving more than 150 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.
Investor Contact:
Tim Sedabres, VP of
Finance, Investor
Relations
920-491-7059
Media Contact:
Autumn Latimore, Senior
Vice President, Public
Relations Director
414-278-1860
------------
Consolidated Balance Sheets (Unaudited)
--------------------------------------
Associated Banc-Corp
December 31, September 30, Seql Qtr June 30, March 31, December 31, Comp Qtr
(in thousands) 2012 2012 $ Change 2012 2012 2011 $ Change
------------- ---- ---- -------- ---- ---- ---- --------
Assets
Cash and due from banks $563,304 $419,529 $143,775 $414,760 $360,728 $454,958 $108,346
Interest-bearing
deposits in other
financial institutions 147,434 531,303 (383,869) 180,050 344,148 154,562 (7,128)
Federal funds sold and
securities purchased
under agreements to
resell 27,135 2,460 24,675 3,800 7,100 7,075 20,060
Securities held to
maturity, at amortized
cost 39,877 21,852 18,025 - - - 39,877
Securities available for
sale, at fair value 4,926,758 4,496,198 430,560 4,521,436 4,669,100 4,937,483 (10,725)
Federal Home Loan Bank
and Federal
Reserve Bank stocks, at
cost 166,774 166,100 674 176,041 177,808 191,188 (24,414)
Loans held for sale 261,410 157,093 104,317 157,481 196,570 249,195 12,215
Loans 15,411,022 14,966,214 444,808 14,698,902 14,253,725 14,031,071 1,379,951
Allowance for loan
losses (297,409) (315,150) 17,741 (332,658) (356,298) (378,151) 80,742
-------- -------- ------ -------- -------- -------- ------
Loans, net 15,113,613 14,651,064 462,549 14,366,244 13,897,427 13,652,920 1,460,693
Premises and equipment,
net 253,958 238,756 15,202 225,245 225,164 223,736 30,222
Goodwill 929,168 929,168 - 929,168 929,168 929,168 -
Other intangible assets,
net 61,176 61,294 (118) 64,812 68,374 67,574 (6,398)
Trading assets 70,711 76,159 (5,448) 73,484 69,081 73,253 (2,542)
Other assets 970,472 987,378 (16,906) 968,579 969,002 983,105 (12,633)
------- ------- ------- ------- ------- ------- -------
Total assets $23,531,790 22,738,354 $793,436 $22,081,100 $21,913,670 $21,924,217 $1,607,573
=========== ========== ======== =========== =========== =========== ==========
Liabilities and
Stockholders' Equity
Noninterest-bearing
demand deposits $4,759,556 4,320,437 $439,119 $3,874,429 $3,989,156 $3,928,792 $830,764
Interest-bearing
deposits 12,180,309 12,130,155 50,154 11,232,442 11,664,220 11,161,863 1,018,446
---------- ---------- ------ ---------- ---------- ---------- ---------
Total deposits 16,939,865 16,450,592 489,273 15,106,871 15,653,376 15,090,655 1,849,210
Federal funds purchased
and securities sold
under agreements to
repurchase 750,455 1,138,027 (387,572) 1,253,270 1,236,219 1,514,485 (764,030)
Other short-term funding 1,576,484 615,258 961,226 1,400,000 700,000 1,000,000 576,484
Long-term funding 1,015,346 1,305,422 (290,076) 1,150,729 1,176,736 1,177,071 (161,725)
Trading liabilities 76,343 82,861 (6,518) 80,107 75,130 80,046 (3,703)
Accrued expenses and
other liabilities 236,898 195,742 41,156 180,502 171,336 196,166 40,732
------- ------- ------ ------- ------- ------- ------
Total liabilities 20,595,391 19,787,902 807,489 19,171,479 19,012,797 19,058,423 1,536,968
Stockholders' Equity
Preferred equity 63,272 63,272 - 63,272 63,272 63,272 -
Common stock 1,750 1,750 - 1,750 1,750 1,746 4
Surplus 1,602,136 1,599,070 3,066 1,594,995 1,590,336 1,586,401 15,735
Retained earnings 1,281,811 1,250,189 31,622 1,213,735 1,181,247 1,148,773 133,038
Accumulated other
comprehensive income 48,603 67,303 (18,700) 66,579 65,278 65,602 (16,999)
Treasury stock (61,173) (31,132) (30,041) (30,710) (1,010) - (61,173)
------- ------- ------- ------- ------ --- -------
Total stockholders'
equity 2,936,399 2,950,452 (14,053) 2,909,621 2,900,873 2,865,794 70,605
--------- --------- ------- --------- --------- --------- ------
Total liabilities and
stockholders' equity $23,531,790 22,738,354 $793,436 $22,081,100 $21,913,670 $21,924,217 $1,607,573
=========== ========== ======== =========== =========== =========== ==========
Consolidated Statements of Income (Unaudited)
--------------------------------------------
Associated Banc-Corp
For The Three Months Ended For The Year Ended,
December 31, Quarter December 31, Year-to-Date
------------ ------------
(in thousands, except per share
amounts) 2012 2011 $ Change % Change 2012 2011 $ Change % Change
------------------------------- ---- ---- -------- -------- ---- ---- -------- --------
Interest Income
Interest and fees on loans $150,107 $149,832 $275 0.2% $595,965 $582,739 $13,226 2.3%
Interest and dividends on investment
securities:
Taxable 20,368 22,855 (2,487) (10.9%) 86,945 123,371 (36,426) (29.5%)
Tax-exempt 7,119 7,344 (225) (3.1%) 28,655 29,937 (1,282) (4.3%)
Other interest 2,876 1,251 1,625 129.9% 6,719 5,575 1,144 20.5%
----- ----- ----- ----- ----- -----
Total interest income 180,470 181,282 (812) (0.4%) 718,284 741,622 (23,338) (3.1%)
Interest Expense
Interest on deposits 9,091 14,954 (5,863) (39.2%) 41,431 65,748 (24,317) (37.0%)
558 1,278 (720) (56.3%) 2,687 6,196 (3,509) (56.6%)
Interest on Federal funds purchased and
securities sold under agreements to
repurchase
Interest on other short-term funding 226 879 (653) (74.3%) 3,294 6,215 (2,921) (47.0%)
Interest on long-term funding 9,140 12,346 (3,206) (26.0%) 44,880 50,632 (5,752) (11.4%)
----- ------ ------ ------ ------ ------
Total interest expense 19,015 29,457 (10,442) (35.4%) 92,292 128,791 (36,499) (28.3%)
------ ------ ------- ------ ------- -------
Net Interest Income 161,455 151,825 9,630 6.3% 625,992 612,831 13,161 2.1%
Provision for loan losses 3,000 1,000 2,000 200.0% 3,000 52,000 (49,000) (94.2%)
----- ----- ----- ----- ------ -------
Net interest income after provision for
loan losses 158,455 150,825 7,630 5.1% 622,992 560,831 62,161 11.1%
Noninterest Income
Trust service fees 10,429 9,511 918 9.7% 40,737 39,145 1,592 4.1%
Service charges on deposit accounts 16,817 17,783 (966) (5.4%) 68,917 75,908 (6,991) (9.2%)
Card-based and other nondeposit fees 12,690 11,269 1,421 12.6% 47,862 57,905 (10,043) (17.3%)
Insurance commissions 10,862 11,216 (354) (3.2%) 47,014 45,554 1,460 3.2%
Brokerage and annuity commissions 3,678 3,665 13 0.4% 15,643 17,230 (1,587) (9.2%)
----- ----- --- ------ ------ ------
Total core fee-based revenue 54,476 53,444 1,032 1.9% 220,173 235,742 (15,569) (6.6%)
Mortgage banking, net 13,530 9,677 3,853 39.8% 63,500 12,723 50,777 399.1%
Capital market fees, net 4,243 3,950 293 7.4% 14,241 8,711 5,530 63.5%
Bank owned life insurance income 3,206 3,820 (614) (16.1%) 13,952 14,896 (944) (6.3%)
Asset losses, net (209) (1,799) 1,590 (88.4%) (12,096) (12,199) 103 (0.8%)
Investment securities gains (losses),
net 152 (310) 462 (149.0%) 4,261 (1,112) 5,373 483.2%
Other 2,507 2,750 (243) (8.8%) 9,259 14,358 (5,099) (35.5%)
----- ----- ---- ----- ------ ------
Total noninterest income 77,905 71,532 6,373 8.9% 313,290 273,119 40,171 14.7%
Noninterest Expense
Personnel expense 98,073 90,306 7,767 8.6% 381,404 360,144 21,260 5.9%
Occupancy 17,273 13,796 3,477 25.2% 60,794 55,939 4,855 8.7%
Equipment 6,444 5,286 1,158 21.9% 23,566 19,873 3,693 18.6%
Data processing 11,706 9,080 2,626 28.9% 43,548 32,475 11,073 34.1%
Business development and advertising 5,395 6,904 (1,509) (21.9%) 21,303 23,038 (1,735) (7.5%)
Other intangible amortization 1,049 1,179 (130) (11.0%) 4,195 4,714 (519) (11.0%)
Loan expense 3,130 3,469 (339) (9.8%) 12,285 12,008 277 2.3%
Legal and professional fees 8,174 4,651 3,523 75.7% 31,232 18,205 13,027 71.6%
Losses other than loans 3,071 11,890 (8,819) (74.2%) 12,258 17,921 (5,663) (31.6%)
Foreclosure/OREO expense 3,293 5,169 (1,876) (36.3%) 15,069 21,393 (6,324) (29.6%)
FDIC expense 4,813 6,136 (1,323) (21.6%) 19,478 28,484 (9,006) (31.6%)
Other 13,907 14,461 (554) (3.8%) 56,691 56,329 362 0.6%
------ ------ ---- ------ ------ ---
Total noninterest expense 176,328 172,327 4,001 2.3% 681,823 650,523 31,300 4.8%
------- ------- ----- ------- ------- ------
Income before income taxes 60,032 50,030 10,002 20.0% 254,459 183,427 71,032 38.7%
Income tax expense 13,404 8,905 4,499 50.5% 75,486 43,728 31,758 72.6%
------ ----- ----- ------ ------ ------
Net income 46,628 41,125 5,503 13.4% 178,973 139,699 $39,274 28.1%
Preferred stock dividends and discount 1,300 1,300 - 0.0% 5,200 24,830 (19,630) (79.1%)
----- ----- --- ----- ------ -------
Net income available to common equity $45,328 $39,825 $5,503 13.8% $173,773 $114,869 $58,904 51.3%
======= ======= ====== ======== ======== =======
Earnings Per Common Share:
Basic $0.26 $0.23 $0.03 13.0% $1.00 $0.66 $0.34 51.5%
Diluted $0.26 $0.23 $0.03 13.0% $1.00 $0.66 $0.34 51.5%
Average Common Shares Outstanding:
Basic 170,707 173,523 (2,816) (1.6%) 172,255 173,370 (1,115) (0.6%)
Diluted 170,896 173,523 (2,627) (1.5%) 172,357 173,372 (1,015) (0.6%)
N/M = Not meaningful.
Consolidated Statements of Income (Unaudited) - Quarterly Trend
---------------------------------------------------------------
Associated Banc-Corp
Sequential Qtr Comparable Qtr
(in thousands, except per share
amounts) 4Q12 3Q12 $ Change % Change 2Q12 1Q12 4Q11 $ Change % Change
------------------------------- ---- ---- -------- -------- ---- ---- ---- -------- --------
Interest Income
Interest and fees on loans $150,107 $149,647 $460 0.3% $147,188 $149,023 $149,832 $275 0.2%
Interest and dividends on investment
securities:
Taxable 20,368 20,548 (180) (0.9%) 23,000 23,029 22,855 (2,487) (10.9%)
Tax-exempt 7,119 7,127 (8) (0.1%) 7,135 7,274 7,344 (225) (3.1%)
Other interest 2,876 1,334 1,542 115.6% 1,262 1,247 1,251 1,625 129.9%
----- ----- ----- ----- ----- ----- -----
Total interest income 180,470 178,656 1,814 1.0% 178,585 180,573 181,282 (812) (0.4%)
Interest Expense
Interest on deposits 9,091 9,751 (660) (6.8%) 10,553 12,036 14,954 (5,863) (39.2%)
Interest on Federal funds purchased and
securities sold under agreements to
repurchase 558 750 (192) (25.6%) 612 767 1,278 (720) (56.3%)
Interest on other short-term funding 226 815 (589) (72.3%) 1,197 1,056 879 (653) (74.3%)
Interest on long-term funding 9,140 11,738 (2,598) (22.1%) 11,956 12,046 12,346 (3,206) (26.0%)
----- ------ ------ ------ ------ ------ ------
Total interest expense 19,015 23,054 (4,039) (17.5%) 24,318 25,905 29,457 (10,442) (35.4%)
------ ------ ------ ------ ------ ------ -------
Net Interest Income 161,455 155,602 5,853 3.8% 154,267 154,668 151,825 9,630 6.3%
Provision for loan losses 3,000 - 3,000 - - 1,000 2,000 200.0%
----- --- ----- --- --- ----- -----
158,455 155,602 2,853 1.8% 154,267 154,668 150,825 7,630 5.1%
Net interest income after provision for
loan losses
Noninterest Income
Trust service fees 10,429 10,396 33 0.3% 10,125 9,787 9,511 918 9.7%
Service charges on deposit accounts 16,817 17,290 (473) (2.7%) 16,768 18,042 17,783 (966) (5.4%)
Card-based and other nondeposit fees 12,690 12,209 481 3.9% 12,084 10,879 11,269 1,421 12.6%
Insurance commissions 10,862 11,650 (788) (6.8%) 12,912 11,590 11,216 (354) (3.2%)
Brokerage and annuity commissions 3,678 3,632 46 1.3% 4,206 4,127 3,665 13 0.4%
----- ----- --- ----- ----- ----- ---
Total core fee-based revenue 54,476 55,177 (701) (1.3%) 56,095 54,425 53,444 1,032 1.9%
Mortgage banking, net 13,530 15,581 (2,051) (13.2%) 16,735 17,654 9,677 3,853 39.8%
Capital market fees, net 4,243 3,609 634 17.6% 2,673 3,716 3,950 293 7.4%
Bank owned life insurance income 3,206 3,290 (84) (2.6%) 3,164 4,292 3,820 (614) (16.1%)
Asset losses, net (209) (3,309) 3,100 (93.7%) (4,984) (3,594) (1,799) 1,590 (88.4%)
Investment securities gains (losses),
net 152 3,506 (3,354) (95.7%) 563 40 (310) 462 (149.0%)
Other 2,507 3,134 (627) (20.0%) 1,705 1,913 2,750 (243) (8.8%)
----- ----- ---- ----- ----- ----- ----
Total noninterest income 77,905 80,988 (3,083) (3.8%) 75,951 78,446 71,532 6,373 8.9%
Noninterest Expense
Personnel expense 98,073 95,231 2,842 3.0% 93,819 94,281 90,306 7,767 8.6%
Occupancy 17,273 14,334 2,939 20.5% 14,008 15,179 13,796 3,477 25.2%
Equipment 6,444 5,935 509 8.6% 5,719 5,468 5,286 1,158 21.9%
Data processing 11,706 11,022 684 6.2% 11,304 9,516 9,080 2,626 28.9%
Business development and advertising 5,395 5,059 336 6.6% 5,468 5,381 6,904 (1,509) (21.9%)
Other intangible amortization 1,049 1,048 1 0.1% 1,049 1,049 1,179 (130) (11.0%)
Loan expense 3,130 3,297 (167) (5.1%) 2,948 2,910 3,469 (339) (9.8%)
Legal and professional fees 8,174 7,686 488 6.3% 5,657 9,715 4,651 3,523 75.7%
Losses other than loans 3,071 3,577 (506) (14.1%) 2,060 3,550 11,890 (8,819) (74.2%)
Foreclosure/OREO expense 3,293 4,071 (778) (19.1%) 4,343 3,362 5,169 (1,876) (36.3%)
FDIC expense 4,813 5,017 (204) (4.1%) 4,778 4,870 6,136 (1,323) (21.6%)
Other 13,907 13,426 481 3.6% 14,877 14,481 14,461 (554) (3.8%)
------ ------ --- ------ ------ ------ ----
Total noninterest expense 176,328 169,703 6,625 3.9% 166,030 169,762 172,327 4,001 2.3%
------- ------- ----- ------- ------- ------- -----
Income before income taxes 60,032 66,887 (6,855) (10.2%) 64,188 63,352 50,030 10,002 20.0%
Income tax expense 13,404 20,492 (7,088) (34.6%) 20,871 20,719 8,905 4,499 50.5%
------ ------ ------ ------ ------ ----- -----
Net income 46,628 46,395 233 0.5% 43,317 42,633 41,125 5,503 13.4%
Preferred stock dividends and discount 1,300 1,300 - 0.0% 1,300 1,300 1,300 - 0.0%
----- ----- --- ----- ----- ----- ---
Net income available to common equity $45,328 $45,095 $233 0.5% $42,017 $41,333 $39,825 $5,503 13.8%
======= ======= ==== ======= ======= ======= ======
Earnings Per Common Share:
Basic $0.26 $0.26 $ - 0.0% $0.24 $0.24 $0.23 $0.03 13.0%
Diluted $0.26 $0.26 $ - 0.0% $0.24 $0.24 $0.23 $0.03 13.0%
Average Common Shares Outstanding:
Basic 170,707 171,650 (943) (0.5%) 172,839 173,846 173,523 (2,816) (1.6%)
Diluted 170,896 171,780 (884) (0.5%) 172,841 173,848 173,523 (2,627) (1.5%)
N/M = Not meaningful.
Selected Quarterly Information
------------------------------
Associated Banc-Corp
(in thousands, except per share, full
time equivalent employee data and
otherwise noted) YTD 2012 YTD 2011 4th Qtr 2012 3rd Qtr 2012 2nd Qtr 2012 1st Qtr 2012 4th Qtr 2011
------------------------------------- -------- -------- ------------ ------------ ------------ ------------ ------------
Summary of Operations
Net interest income $625,992 $612,831 $161,455 $155,602 $154,267 $154,668 $151,825
Provision for loan losses 3,000 52,000 3,000 - - - 1,000
Asset losses, net (12,096) (12,199) (209) (3,309) (4,984) (3,594) (1,799)
Investment securities gains (losses),
net 4,261 (1,112) 152 3,506 563 40 (310)
Noninterest income (excluding
securities & asset gains) 321,125 286,430 77,962 80,791 80,372 82,000 73,641
Noninterest expense 681,823 650,523 176,328 169,703 166,030 169,762 172,327
Income before income taxes 254,459 183,427 60,032 66,887 64,188 63,352 50,030
Income tax expense 75,486 43,728 13,404 20,492 20,871 20,719 8,905
Net income 178,973 139,699 46,628 46,395 43,317 42,633 41,125
Net income available to common equity 173,773 114,869 45,328 45,095 42,017 41,333 39,825
Taxable equivalent adjustment 21,046 21,374 5,221 5,268 5,254 5,303 5,307
Per Common Share Data
Net income:
Basic $1.00 $0.66 $0.26 $0.26 $0.24 $0.24 $0.23
Diluted 1.00 0.66 0.26 0.26 0.24 0.24 0.23
Dividends 0.23 0.04 0.08 0.05 0.05 0.05 0.01
Market Value:
High $14.63 $15.36 $13.54 $13.79 $13.97 $14.63 $11.78
Low 11.43 8.95 12.19 12.04 11.76 11.43 9.15
Close 13.12 11.17 13.12 13.16 13.19 13.96 11.17
Book value 16.97 16.15 16.97 16.82 16.59 16.32 16.15
Tier 1 common equity / share 11.08 10.28 11.08 10.89 10.66 10.46 10.28
Tangible book value 11.39 10.68 11.39 11.31 11.07 10.87 10.68
Performance Ratios (annualized)
Earning assets yield 3.77% 3.92% 3.70% 3.73% 3.80% 3.85% 3.81%
Interest-bearing liabilities rate 0.62 0.85 0.51 0.62 0.65 0.70 0.78
Net interest margin 3.30 3.26 3.32 3.26 3.30 3.31 3.21
Return on average assets 0.81 0.65 0.83 0.84 0.80 0.79 0.75
Return on average tangible common
equity 8.96 6.45 9.15 9.32 8.87 8.85 8.57
Return on average Tier 1 common
equity (1) 9.45 6.71 9.61 9.69 9.26 9.23 8.96
Efficiency ratio (2) 70.42 70.66 72.08 70.22 69.21 70.16 74.67
Effective tax rate 29.67 23.84 22.33 30.64 32.52 32.70 17.80
Dividend payout ratio (3) 23.00 6.06 30.77 19.23 20.83 20.83 4.35
Average Balances
Assets $21,976,357 $21,588,620 $22,461,886 $22,016,748 $21,684,600 $21,659,139 $21,755,870
Earning assets 19,613,777 19,442,263 20,032,432 19,659,796 19,386,046 19,371,729 19,506,627
Interest-bearing liabilities 14,905,735 15,120,824 14,840,162 14,940,697 14,922,006 14,920,413 15,095,689
Loans (4) 14,741,785 13,278,848 15,131,102 14,916,793 14,602,602 14,310,441 14,043,585
Deposits 15,582,369 14,401,127 16,650,268 15,615,856 15,050,684 15,000,567 14,893,469
Short and long-term funding 3,272,212 4,100,825 2,638,661 3,286,943 3,566,346 3,603,700 3,857,252
Common stockholders' equity 2,885,716 2,730,643 2,915,346 2,870,438 2,852,050 2,826,913 2,792,823
Stockholders' equity 2,948,988 2,997,290 2,978,618 2,933,710 2,915,322 2,890,185 2,856,095
Average Tier 1 common equity (5) 1,838,424 1,713,155 1,876,686 1,850,610 1,825,441 1,801,649 1,763,522
At Period End
Assets $23,531,790 $22,738,354 $22,081,100 $21,913,670 $21,924,217
Loans 15,411,022 14,966,214 14,698,902 14,253,725 14,031,071
Allowance for loan losses 297,409 315,150 332,658 356,298 378,151
Goodwill 929,168 929,168 929,168 929,168 929,168
Mortgage servicing rights, net 45,949 45,018 47,488 50,001 48,152
Other intangible assets, net 15,227 16,276 17,324 18,373 19,422
Deposits 16,939,865 16,450,592 15,106,871 15,653,376 15,090,655
Loans / deposits 90.97% 90.98% 97.30% 91.06% 92.98%
Risk weighted assets ($ in millions)
(6) 16,194 15,575 15,188 14,570 14,568
Tier 1 common equity (5) 1,875,534 1,869,931 1,828,529 1,819,782 1,783,515
Stockholders' equity / assets 12.48% 12.98% 13.18% 13.24% 13.07%
Tangible common equity /tangible
assets (7) 8.54% 8.91% 8.99% 9.01% 8.84%
Tangible equity / tangible assets (8) 8.82% 9.20% 9.29% 9.32% 9.14%
Tier 1 common equity /risk-weighted
assets (6) 11.58% 12.01% 12.04% 12.49% 12.24%
Tier 1 leverage ratio (6) 8.98% 9.99% 9.95% 10.03% 9.81%
Tier 1 risk-based capital ratio (6) 11.97% 13.57% 13.64% 14.33% 14.08%
Total risk-based capital ratio (6) 13.39% 15.00% 15.08% 15.78% 15.53%
Shares outstanding, end of period 169,304 171,657 171,611 173,923 173,575
Selected trend information
Average full time equivalent
employees 4,915 4,965 4,951 5,045 5,056
Trust assets under management, at
market value ($ in millions) $6,454 $6,163 $5,934 $5,983 $5,616
Mortgage loans originated for sale
during period 780,469 715,184 738,091 563,688 843,614
Mortgage portfolio serviced for
others ($ in millions) 7,453 7,547 7,511 7,284 7,321
Mortgage servicing rights, net /
Portfolio serviced for others 0.62% 0.60% 0.63% 0.69% 0.66%
(1) Return on average Tier 1 common equity = Net income available to
common equity divided by average Tier 1 common equity. This is a
non-GAAP financial measure.
(2) Efficiency ratio = Noninterest expense divided by sum of taxable
equivalent net interest income plus noninterest income, excluding
investment securities gains, net, and asset gains, net. This is a
non-GAAP financial measure.
(3) Ratio is based upon basic earnings per common share.
(4) Loans held for sale have been included in the average balances.
(5) Tier 1 common equity (period end and average) is Tier 1 capital
excluding qualifying perpetual preferred stock and qualifying trust
preferred securities.
(6) December 31, 2012 data is estimated.
(7) Tangible common equity to tangible assets = Common stockholders'
equity excluding goodwill and other intangible assets divided by
assets excluding goodwill and other intangible assets. This is a
non-GAAP financial measure.
(8) Tangible equity to tangible assets = Stockholders' equity
excluding goodwill and other intangible assets divided by assets
excluding goodwill and other intangible assets. This is a non-GAAP
financial measure.
Selected Asset Quality Information
Associated Banc-Corp
Dec12 vs Sep12 Dec12 vs Dec11
(in thousands) Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------- ------------ ------------ -------- ------------ ------------ ------------ --------
Allowance for Loan Losses
Beginning balance $315,150 $332,658 (5.3%) $356,298 $378,151 $399,723 (21.2%)
Provision for loan losses 3,000 - 0.0% - - 1,000 200.0%
Charge offs (30,417) (25,030) 21.5% (30,340) (31,259) (34,056) (10.7%)
Recoveries 9,676 7,522 28.6% 6,700 9,406 11,484 (15.7%)
----- ----- ----- ----- ------
Net charge offs (20,741) (17,508) 18.5% (23,640) (21,853) (22,572) (8.1%)
Ending balance $297,409 $315,150 (5.6%) $332,658 $356,298 $378,151 (21.4%)
======== ======== ======== ======== ========
Reserve for losses on unfunded
commitments $21,800 $19,800 10.1% $18,900 $15,600 $14,700 48.3%
Net Charge Offs Dec12 vs Sep12 Dec12 vs Dec11
Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and industrial $2,630 $3,831 (31.3%) $14,544 $3,872 $231 N/M
Commercial real estate -owner
occupied 2,056 (8) N/M 1,164 415 539 N/M
Lease financing 754 (20) N/M - (1,836) 19 N/M
--- --- --- ------ ---
Commercial and business lending 5,440 3,803 43.0% 15,708 2,451 789 N/M
Commercial real estate -
investor (232) 1,905 (112.2%) 177 7,354 2,394 (109.7%)
Real estate construction 858 (187) N/M 558 230 7,088 (87.9%)
--- ---- --- --- -----
Commercial real estate lending 626 1,718 (63.6%) 735 7,584 9,482 (93.4%)
--- ----- --- ----- -----
Total commercial 6,066 5,521 9.9% 16,443 10,035 10,271 (40.9%)
Home equity 8,071 7,922 1.9% 5,284 8,950 8,113 (0.5%)
Installment 1,027 324 N/M 371 101 452 127.2%
----- --- --- --- ---
Total retail 9,098 8,246 10.3% 5,655 9,051 8,565 6.2%
Residential mortgage 5,577 3,741 49.1% 1,542 2,767 3,736 49.3%
Total net charge offs $20,741 $17,508 18.5% $23,640 $21,853 $22,572 (8.1%)
======= ======= ======= ======= =======
Net Charge Offs to Average
Loans (in basis points) * Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011
------------ ------------ ------------ ------------ ------------
Commercial and industrial 25 37 151 42 3
Commercial real estate -owner
occupied 69 (0) 43 16 20
Lease financing 480 (13) - N/M 14
--- --- --- --- ---
Commercial and business lending 40 29 126 20 7
Commercial real estate -
investor (3) 27 3 113 38
Real estate construction 54 (12) 40 16 N/M
--- --- ---
Commercial real estate lending 7 20 9 96 122
--- --- --- --- ---
Total commercial 27 25 79 50 53
Home equity 140 132 86 144 127
Installment 86 26 28 7 32
--- --- --- --- ---
Total retail 131 114 76 119 110
Residential mortgage 64 45 19 34 46
Total net charge offs 55 47 65 61 64
=== === === === ===
Credit Quality Dec12 vs Sep12 Dec12 vs Dec11
Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Nonaccrual loans $252,868 $278,172 (9.1%) $317,872 $327,085 $356,772 (29.1%)
Other real estate owned (OREO) 34,900 36,053 (3.2%) 40,029 34,425 41,571 (16.0%)
Total nonperforming assets $287,768 $314,225 (8.4%) $357,901 $361,510 $398,343 (27.8%)
======== ======== ======== ======== ========
Loans 90 or more days past due
and still accruing 2,289 2,334 (1.9%) 5,224 2,497 4,925 (53.5%)
Restructured loans (accruing) 121,087 135,791 (10.8%) 122,229 120,719 113,164 7.0%
Allowance for loan losses /
loans 1.93% 2.11% 2.26% 2.50% 2.70%
Allowance for loan losses /
nonaccrual loans 117.61 113.29 104.65 108.93 105.99
Nonaccrual loans / total loans 1.64 1.86 2.16 2.29 2.54
Nonperforming assets /total
loans plus OREO 1.86 2.09 2.43 2.53 2.83
Nonperforming assets /total
assets 1.22 1.38 1.62 1.65 1.82
Net charge offs /average loans
(annualized) 0.55 0.47 0.65 0.61 0.64
Year-to-date net charge offs
/average loans 0.57 0.58 0.63 0.61 1.13
Nonaccrual loans by type:
Commercial and industrial $39,182 $41,694 (6.0%) $46,111 $50,641 $56,075 (30.1%)
Commercial real estate -owner
occupied 24,254 27,161 (10.7%) 33,417 31,888 35,718 (32.1%)
Lease financing 3,031 5,927 (48.9%) 8,260 9,040 10,644 (71.5%)
----- ----- ----- ----- ------
Commercial and business lending 66,467 74,782 (11.1%) 87,788 91,569 102,437 (35.1%)
Commercial real estate -
investor 58,687 71,522 (17.9%) 88,806 89,030 99,352 (40.9%)
Real estate construction 27,302 31,684 (13.8%) 36,403 36,471 41,806 (34.7%)
------ ------ ------ ------ ------
Commercial real estate lending 85,989 103,206 (16.7%) 125,209 125,501 141,158 (39.1%)
------ ------- ------- ------- -------
Total commercial 152,456 177,988 (14.3%) 212,997 217,070 243,595 (37.4%)
Home equity 39,215 38,467 1.9% 41,536 44,628 46,907 (16.4%)
Installment 1,838 2,893 (36.5%) 3,047 2,627 2,715 (32.3%)
----- ----- ----- ----- -----
Total retail 41,053 41,360 (0.7%) 44,583 47,255 49,622 (17.3%)
Residential mortgage 59,359 58,824 0.9% 60,292 62,760 63,555 (6.6%)
------ ------ ------ ------ ------
Total consumer 100,412 100,184 0.2% 104,875 110,015 113,177 (11.3%)
Total nonaccrual loans $252,868 $278,172 (9.1%) $317,872 $327,085 $356,772 (29.1%)
======== ======== ======== ======== ========
* Annualized.
N/M = Not meaningful.
Selected Asset Quality Information (continued)
Associated Banc-Corp
Dec12 vs Sep12 Dec12 vs Dec11
(in thousands) Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------- ------------ ------------ -------- ------------ ------------ ------------ --------
Restructured loans
(accruing)
Commercial and
industrial $28,140 $35,015 (19.6%) $28,399 $25,622 $22,552 24.8%
Commercial real estate
-owner occupied 13,852 15,706 (11.8%) 7,115 6,926 8,138 70.2%
Lease financing - - 0.0% - - - 0.0%
--- --- --- --- ---
Commercial and
business lending 41,992 50,721 (17.2%) 35,514 32,548 30,690 36.8%
Commercial real estate
-investor 41,660 49,249 (15.4%) 49,325 45,845 43,417 (4.0%)
Real estate
construction 4,530 3,561 27.2% 5,838 11,770 10,977 (58.7%)
----- ----- ----- ------ ------
Commercial real estate
lending 46,190 52,810 (12.5%) 55,163 57,615 54,394 (15.1%)
------ ------ ------ ------ ------
Total commercial 88,182 103,531 (14.8%) 90,677 90,163 85,084 3.6%
Home equity 9,968 9,467 5.3% 9,471 9,092 8,950 11.4%
Installment 653 672 (2.8%) 779 999 1,015 (35.7%)
--- --- --- --- -----
Total retail 10,621 10,139 4.8% 10,250 10,091 9,965 6.6%
Residential mortgage 22,284 22,121 0.7% 21,302 20,465 18,115 23.0%
------ ------ ------ ------ ------
Total consumer 32,905 32,260 2.0% 31,552 30,556 28,080 17.2%
Total restructured
loans (accruing) $121,087 $135,791 (10.8%) $122,229 $120,719 $113,164 7.0%
======== ======== ======== ======== ========
Restructured loans in
nonaccrual loans (not
included above) $80,590 $74,251 8.5% $86,395 $79,946 $87,493 (7.9%)
Loans Past Due 30-89
Days Dec12 vs Sep12 Dec12 vs Dec11
Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $11,339 $3,795 N/M $4,465 $12,643 $8,743 29.7%
Commercial real estate
-owner occupied 11,053 4,843 128.2% 2,125 7,532 7,092 55.9%
Lease financing 12 17 (29.4%) 39 40 104 (88.5%)
--- --- --- --- ---
Commercial and
business lending 22,404 8,655 158.9% 6,629 20,215 15,939 40.6%
Commercial real estate
-investor 13,472 8,809 52.9% 12,854 8,313 4,970 171.1%
Real estate
construction 3,155 1,254 151.6% 1,618 1,736 996 216.8%
----- ----- ----- ----- ---
Commercial real estate
lending 16,627 10,063 65.2% 14,472 10,049 5,966 178.7%
------ ------ ------ ------ -----
Total commercial 39,031 18,718 108.5% 21,101 30,264 21,905 78.2%
Home equity 13,538 14,823 (8.7%) 15,302 18,007 12,189 11.1%
Installment 2,109 1,693 24.6% 1,558 2,813 2,592 (18.6%)
----- ----- ----- ----- -----
Total retail 15,647 16,516 (5.3%) 16,860 20,820 14,781 5.9%
Residential mortgage 9,403 6,878 36.7% 9,836 10,114 7,224 30.2%
----- ----- ----- ------ -----
Total consumer 25,050 23,394 7.1% 26,696 30,934 22,005 13.8%
Total loans past due
30-89 days $64,081 $42,112 52.2% $47,797 $61,198 $43,910 45.9%
======= ======= ======= ======= =======
Potential Problem
Loans Dec12 vs Sep12 Dec12 vs Dec11
Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and
industrial $128,434 $120,888 6.2% $121,764 $157,778 $153,306 (16.2%)
Commercial real estate
-owner occupied 99,592 120,034 (17.0%) 108,508 112,673 136,366 (27.0%)
Lease financing 264 214 23.4% 324 487 158 67.1%
--- --- --- --- ---
Commercial and
business lending 228,290 241,136 (5.3%) 230,596 270,938 289,830 (21.2%)
Commercial real estate
-investor 107,068 133,046 (19.5%) 142,453 167,339 230,206 (53.5%)
Real estate
construction 13,092 18,477 (29.1%) 23,905 27,654 27,649 (52.6%)
------ ------ ------ ------ ------
Commercial real estate
lending 120,160 151,523 (20.7%) 166,358 194,993 257,855 (53.4%)
------- ------- ------- ------- -------
Total commercial 348,450 392,659 (11.3%) 396,954 465,931 547,685 (36.4%)
Home equity 3,670 3,343 9.8% 4,173 4,441 5,451 (32.7%)
Installment 111 131 (15.3%) 127 142 233 (52.4%)
--- --- --- --- ---
Total retail 3,781 3,474 8.8% 4,300 4,583 5,684 (33.5%)
Residential mortgage 8,762 8,197 6.9% 8,658 9,580 13,037 (32.8%)
----- ----- ----- ----- ------
Total consumer 12,543 11,671 7.5% 12,958 14,163 18,721 (33.0%)
Total potential
problem loans $360,993 $404,330 (10.7%) $409,912 $480,094 $566,406 (36.3%)
======== ======== ======== ======== ========
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp Year ended December 31, 2012 Year ended December 31, 2011
---------------------------- ----------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ----------------- ------------- ------- ----------------- -------------
Earning assets:
Loans: (1) (2) (3)
Commercial and business
lending $5,139,155 $202,444 3.94% $4,301,377 $182,362 4.24%
Commercial real estate
lending 3,350,190 140,881 4.21 2,973,351 132,789 4.47
--------- ------- --------- -------
Total commercial 8,489,345 343,325 4.04 $7,274,728 $315,151 4.33
Residential mortgage 3,330,123 121,399 3.65 2,819,702 116,207 4.12
Retail 2,922,317 135,094 4.62 3,184,418 154,793 4.86
--------- ------- --------- -------
Total loans 14,741,785 599,818 4.07 13,278,848 586,151 4.41
Investment securities 4,469,541 132,793 2.97 5,497,297 171,270 3.12
Other short-term
investments 402,451 6,719 1.67 666,118 5,575 0.84
------- ----- ------- -----
Investments and other 4,871,992 139,512 2.86 6,163,415 176,845 2.87
Total earning assets 19,613,777 739,330 3.77 19,442,263 762,996 3.92
Other assets, net 2,362,580 2,146,357
Total assets $21,976,357 $21,588,620
=========== ===========
Interest-bearing
liabilities:
Savings deposits $1,096,692 $851 0.08% $987,198 $1,091 0.11%
Interest-bearing demand
deposits 2,148,459 3,741 0.17 1,947,506 3,429 0.18
Money market deposits 6,148,663 15,336 0.25 5,147,437 16,385 0.32
Time deposits 2,239,709 21,503 0.96 2,937,858 44,843 1.53
--------- ------ --------- ------
Total interest-bearing
deposits 11,633,523 41,431 0.36 11,019,999 65,748 0.60
Federal funds purchased and
securities sold under 1,177,105 2,687 0.23 1,926,474 6,196 0.32
agreements to repurchase
Other short-term funding 936,376 3,294 0.35 767,230 6,215 0.81
Total long-term funding 1,158,731 44,880 3.87 1,407,121 50,632 3.60
--------- ------ --------- ------
Total short and long-term
funding 3,272,212 50,861 1.55 4,100,825 63,043 1.54
--------- ------ --------- ------
Total interest-bearing
liabilities 14,905,735 92,292 0.62 15,120,824 128,791 0.85
Noninterest-bearing demand
deposits 3,948,846 3,381,128
Other liabilities 172,788 89,378
Stockholders' equity 2,948,988 2,997,290
Total liabilities and
stockholders' equity $21,976,357 $21,588,620
=========== ===========
Net interest income and rate
spread (1) $647,038 3.15% $634,205 3.07%
======== ========
Net interest margin (1) 3.30% 3.26%
Taxable equivalent
adjustment $21,046 $21,374
======= =======
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp Three months ended December 31, 2012 Three months ended December 31, 2011
------------------------------------ ------------------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ----------------- ------------- ------- ----------------- -------------
Earning assets:
Loans: (1) (2) (3)
Commercial and business
lending $5,431,195 $53,442 3.92% $4,638,160 $48,243 4.13%
Commercial real estate
lending 3,451,104 35,623 4.11 3,090,643 34,181 4.39
--------- ------ --------- ------
Total commercial 8,882,299 89,065 3.99 $7,728,803 $82,424 4.23
Residential mortgage 3,485,719 30,126 3.46 3,216,466 31,643 3.93
Retail 2,763,084 31,865 4.59 3,098,316 36,666 4.71
--------- ------ --------- ------
Total loans 15,131,102 151,056 3.98 14,043,585 150,733 4.27
Investment securities 4,545,178 31,759 2.79 5,020,429 34,605 2.76
Other short-term
investments 356,152 2,876 3.22 442,613 1,251 1.13
------- ----- ------- -----
Investments and other 4,901,330 34,635 2.83 5,463,042 35,856 2.63
Total earning assets 20,032,432 185,691 3.70 19,506,627 186,589 3.81
Other assets, net 2,429,454 2,249,243
Total assets $22,461,886 $21,755,870
=========== ===========
Interest-bearing
liabilities:
Savings deposits $1,129,983 $225 0.08% $1,017,271 $230 0.09%
Interest-bearing demand
deposits 2,236,826 954 0.17 2,152,518 1,115 0.21
Money market deposits 6,797,306 4,103 0.24 5,308,174 3,649 0.27
Time deposits 2,037,386 3,809 0.74 2,760,474 9,960 1.43
--------- ----- --------- -----
Total interest-bearing
deposits 12,201,501 9,091 0.30 11,238,437 14,954 0.53
Federal funds purchased and
securities sold under
agreements to repurchase 984,869 558 0.23 1,824,999 1,278 0.28
Other short-term funding 550,137 226 0.16 691,960 879 0.50
Total long-term funding 1,103,655 9,140 3.31 1,340,293 12,346 3.68
--------- ----- --------- ------
Total short and long-term
funding 2,638,661 9,924 1.50 3,857,252 14,503 1.50
--------- ----- --------- ------
Total interest-bearing
liabilities 14,840,162 19,015 0.51 15,095,689 29,457 0.78
Noninterest-bearing demand
deposits 4,448,767 3,655,032
Other liabilities 194,339 149,054
Stockholders' equity 2,978,618 2,856,095
Total liabilities and
stockholders' equity $22,461,886 $21,755,870
=========== ===========
Net interest income and rate
spread (1) $166,676 3.19% $157,132 3.03%
======== ========
Net interest margin (1) 3.32% 3.21%
Taxable equivalent
adjustment $5,221 $5,307
====== ======
(1) The yield on tax exempt loans and securities is computed
on a taxable equivalent basis using a tax rate of 35% for
all periods presented and is net of the effects of certain
disallowed interest deductions.
(2) Nonaccrual loans and loans held for sale have been
included in the average balances.
(3) Interest income includes net loan fees.
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp Three months ended December 31, 2012 Three months ended September 30, 2012
------------------------------------ -------------------------------------
Average Interest Average Average Interest Average
(in thousands) Balance Income / Expense Yield / Rate Balance Income / Expense Yield / Rate
------- ----------------- ------------- ------- ----------------- -------------
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending $5,431,195 $53,442 3.92% $5,275,069 $51,432 3.88%
Commercial real estate lending 3,451,104 35,623 4.11 3,440,220 35,913 4.16
--------- ------ --------- ------
Total commercial 8,882,299 89,065 3.99 $8,715,289 $87,345 3.99
Residential mortgage 3,485,719 30,126 3.46 3,320,212 30,044 3.62
Retail 2,763,084 31,865 4.59 2,881,292 33,251 4.60
--------- ------ --------- ------
Total loans 15,131,102 151,056 3.98 14,916,793 150,640 4.02
Investment securities 4,545,178 31,759 2.79 4,319,404 31,950 2.96
Other short-term investments 356,152 2,876 3.22 423,599 1,334 1.26
------- ----- ------- -----
Investments and other 4,901,330 34,635 2.83 4,743,003 33,284 2.81
Total earning assets 20,032,432 185,691 3.70 19,659,796 183,924 3.73
Other assets, net 2,429,454 2,356,952
Total assets $22,461,886 $22,016,748
=========== ===========
Interest-bearing liabilities:
Savings deposits $1,129,983 $225 0.08% $1,117,194 $229 0.08%
Interest-bearing demand
deposits 2,236,826 954 0.17 2,136,280 926 0.17
Money market deposits 6,797,306 4,103 0.24 6,240,596 3,932 0.25
Time deposits 2,037,386 3,809 0.74 2,159,684 4,664 0.86
--------- ----- --------- -----
Total interest-bearing deposits 12,201,501 9,091 0.30 11,653,754 9,751 0.33
Federal funds purchased and
securities sold under
agreements to repurchase 984,869 558 0.23 1,266,995 750 0.24
Other short-term funding 550,137 226 0.16 837,316 815 0.39
Total long-term funding 1,103,655 9,140 3.31 1,182,632 11,738 3.97
--------- ----- --------- ------
Total short and long-term
funding 2,638,661 9,924 1.50 3,286,943 13,303 1.62
--------- ----- --------- ------
Total interest-bearing
liabilities 14,840,162 19,015 0.51 14,940,697 23,054 0.62
Noninterest-bearing demand
deposits 4,448,767 3,962,102
Other liabilities 194,339 180,239
Stockholders' equity 2,978,618 2,933,710
Total liabilities and
stockholders' equity $22,461,886 $22,016,748
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Net interest income and rate
spread (1) $166,676 3.19% $160,870 3.11%
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Net interest margin (1) 3.32% 3.26%
Taxable equivalent adjustment $5,221 $5,268
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(1) The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions.
(2) Nonaccrual loans and loans held for sale have been included in the average balances.
(3) Interest income includes net loan fees.
Financial Summary and Comparison
Associated Banc-Corp
Period End Loan Composition Dec12 vs Sep12 Dec12 vs Dec11
Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Commercial and industrial $4,502,021 $4,265,356 5.5% $4,076,370 $3,719,016 $3,724,736 20.9%
Commercial real estate -owner
occupied 1,219,747 1,197,517 1.9% 1,116,815 1,074,755 1,086,829 12.2%
Lease financing 64,196 60,818 5.6% 62,750 61,208 58,194 10.3%
------ ------ ------ ------ ------
Commercial and business lending 5,785,964 5,523,691 4.7% 5,255,935 4,854,979 4,869,759 18.8%
Commercial real estate -
investor 2,906,759 2,787,158 4.3% 2,810,521 2,664,251 2,563,767 13.4%
Real estate construction 655,381 611,186 7.2% 612,556 565,953 584,046 12.2%
------- ------- ------- ------- -------
Commercial real estate lending 3,562,140 3,398,344 4.8% 3,423,077 3,230,204 3,147,813 13.2%
--------- --------- --------- --------- ---------
Total commercial 9,348,104 8,922,035 4.8% 8,679,012 8,085,183 8,017,572 16.6%
Home equity 2,219,494 2,356,900 (5.8%) 2,429,594 2,501,770 2,504,704 (11.4%)
Installment 466,727 482,451 (3.3%) 510,831 537,628 557,782 (16.3%)
------- ------- ------- ------- -------
Total retail 2,686,221 2,839,351 (5.4%) 2,940,425 3,039,398 3,062,486 (12.3%)
Residential mortgage 3,376,697 3,204,828 5.4% 3,079,465 3,129,144 2,951,013 14.4%
--------- --------- --------- --------- ---------
Total consumer 6,062,918 6,044,179 0.3% 6,019,890 6,168,542 6,013,499 0.8%
Total loans $15,411,022 $14,966,214 3.0% $14,698,902 $14,253,725 $14,031,071 9.8%
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Period End Deposit and Customer
Funding Composition Dec12 vs Sep12 Dec12 vs Dec11
Dec 31, 2012 Sep 30, 2012 % Change Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 % Change
------------ ------------ -------- ------------ ------------ ------------ --------
Noninterest-bearing demand $4,759,556 $4,320,437 10.2% $3,874,429 $3,989,156 $3,928,792 21.1%
Savings 1,109,861 1,115,783 (0.5%) 1,117,593 1,098,975 986,766 12.5%
Interest-bearing demand 2,554,479 2,230,740 14.5% 2,078,037 2,040,900 2,297,454 11.2%
Money market 6,518,075 6,682,640 (2.5%) 5,822,449 6,176,981 5,150,275 26.6%
Brokered CDs 26,270 33,612 (21.8%) 41,104 46,493 202,948 (87.1%)
Other time 1,971,624 2,067,380 (4.6%) 2,173,259 2,300,871 2,524,420 (21.9%)
Total deposits 16,939,865 16,450,592 3.0% 15,106,871 15,653,376 15,090,655 12.3%
Customer repo sweeps 564,038 600,225 (6.0%) 592,203 635,697 664,624 (15.1%)
Customer repo term 115,032 448,782 (74.4%) 619,897 509,332 695,131 (83.5%)
------- ------- ------- ------- -------
Total customer funding 679,070 1,049,007 (35.3%) 1,212,100 1,145,029 1,359,755 (50.1%)
Total deposits and customer
funding $17,618,935 $17,499,599 0.7% $16,318,971 $16,798,405 $16,450,410 7.1%
=========== =========== =========== =========== ===========
Network transaction deposits
included above in interest-
bearing demand and money market 1,684,745 1,740,434 (3.2%) 1,234,010 1,171,679 875,052 92.5%
Brokered CDs 26,270 33,612 (21.8%) 41,104 46,493 202,948 (87.1%)
------ ------ ------ ------ -------
Total network and brokered
funding 1,711,015 1,774,046 (3.6%) 1,275,114 1,218,172 1,078,000 58.7%
Net customer deposits and
funding (4) 15,907,920 15,725,553 1.2% 15,043,857 15,580,233 15,372,410 3.5%
========== ========== ========== ========== ==========
(4) Total deposits and customer funding excluding total network and brokered funding.
SOURCE Associated Banc-Corp
