Associated Reports First Quarter Earnings of $0.27 per share Earnings per share up 12.5% from a year ago

GREEN BAY, Wis., April 18, 2013 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $46 million, or $0.27 per common share, for the quarter ended March 31, 2013. This compares to net income to common shareholders of $41 million, or $0.24 per common share, for the quarter ended March 31, 2012.

"We are pleased with our solid results this quarter and remain optimistic about our long term prospects," said President and CEO Philip B. Flynn.  "Our mortgage banking business had a very strong quarter and we remain focused on expense management.  We continue to execute on our long-term growth strategies with a focus on relationship banking for consumers and businesses, and remain disciplined in our approach to capital deployment through share buybacks and dividend payments."

HIGHLIGHTS   

  • Net income to common shareholders of $46 million, up 11.5% from the prior year period
    • Quarterly earnings were at the highest level since mid-2008
  • Return on Tier 1 common equity for the quarter was 10.1%, compared to 9.2% for the prior year period
  • Loan balances increased by a net $141 million, or 1% during the first quarter and have increased $1.3 billion, or 9% from a year ago
    • Average loan balances increased by $317 million, or 2% from the fourth quarter and have increased $1.1 billion, or 8% from a year ago
    • Total commercial loan balances grew by $190 million, or 2% during the quarter and accounted for the majority of the quarter's net loan growth
  • Average deposits for the first quarter increased by $2.1 billion, or 14% from a year ago to $17.1 billion
    • Average deposits increased by $496 million, or 3%, from the fourth quarter
  • Credit quality continued to improve with net charge offs, nonaccrual loans, and potential problem loans all declining quarter over quarter
  • During the first quarter, the Company repurchased $30 million, or approximately 2 million shares, of common stock at an average cost of $14.31
  • Capital ratios remain very strong with a Tier 1 common equity ratio of 11.64%

Loans

Average loans of $15.4 billion increased by $317 million, or 2% from the fourth quarter and increased $1.1 billion, or 8%, from the year ago quarter.

Period end first quarter loans of $15.6 billion were up $141 million, or 1%, from $15.4 billion at December 31, 2012 and up $1.3 billion, or 9%, from $14.3 billion a year ago.  Commercial and business lending balances increased by $123 million, or 2% from the prior quarter.  Commercial real estate lending balances grew by $67 million, or 2% on a linked-quarter basis.  The residential mortgage portfolio grew by $91 million, or 3%, during the quarter while the retail portfolio, which includes home equity and installment loan balances, experienced net run-off of $140 million, or 5%, during the quarter.

Deposits

Average deposits of $17.1 billion were up $496 million, or 3%, compared to the fourth quarter and increased by $2.1 billion, or 14%, from the year ago quarter. 

Period end first quarter deposits of $17.4 billion were up $481 million, or 3%, compared to fourth quarter levels.  The net deposit growth during the quarter was driven by increases of $412 million, or 16%, in interest bearing demand deposits and $319 million, or 5%, in money market deposits.  This was mainly offset by a decrease of $306 million in noninterest bearing demand deposit balances.

Net Interest Income and Net Interest Margin

First quarter net interest income of $158 million was 2% lower compared to the prior quarter but up 2% compared to the year-ago quarter.  The $4 million decline in interest and fees on loans from the prior quarter is primarily attributable to two less days of accrual during the respective period ($2 million) and $1 million in lower interest recoveries.  The fourth quarter of 2012 also included $2 million of interest income received on a tax refund.

First quarter net interest margin was 3.17%, a decrease of 15 basis points from the 3.32% reported in the fourth quarter and a 9 basis point decrease from the 3.26% reported in the third quarter of 2012.  The decrease from the fourth quarter of 2012 was mainly due to a 15 basis point decline in loan yields.  Both commercial and consumer loan yields saw compression during the period.  This compression was partially offset by 6 basis points of liability cost management actions.  In addition, the fourth quarter 2012 net interest margin included a 3 basis point benefit related to interest received relating to the tax refund.

Noninterest Income and Expense

Noninterest income for the quarter was $82 million, up $4 million, or 5%, from the fourth quarter.  The improvement was primarily due to an increase in mortgage banking income, up $4 million, reflecting continued strong margins and reduced mortgage servicing rights expense.

Total noninterest expense for the quarter ended March 31, 2013 was $167 million, down $9 million, or 5%, from the fourth quarter.  Personnel expense was flat to the prior quarter as lower salary expenses were offset by the seasonal effect of higher payroll taxes.  Full-time equivalent (FTE) employee counts were at their lowest levels since mid-2010.  Legal and professional expense decreased $3 million from the previous quarter, mainly reflecting lower professional fees relating to Bank Secrecy Act expenditures.  Occupancy expenses were down $2 million from the previous quarter, primarily from branch consolidation benefits.   In addition, losses other than loans were $3 million lower than the fourth quarter.

Credit

The Company reported another quarter of improving credit quality with nonaccrual loans down 11%, to $225 million compared to the fourth quarter, and down 31% from a year ago.  The ratio of nonaccrual loans to total loans now stands at 1.45% and has improved for the 12th consecutive quarter.

Net charge offs of $14 million for the first quarter were down $6 million from the fourth quarter, and were $7 million lower than a year ago. 

First quarter provision for loan losses was $4 million compared to $3 million in the fourth quarter 2012.  The Company's allowance for loan losses was $287 million, representing an allowance equal to 1.84% of loans and representing a coverage ratio of over 127% of nonaccrual loans at March 31, 2013.

Capital Ratios

The Company's capital position remains very strong, with a Tier 1 common equity ratio of 11.64% at March 31, 2013.  The Company's capital ratios continue to be well in excess of both current and proposed "well-capitalized" regulatory benchmarks.

FIRST QUARTER 2013 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 18, 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 888-317-6016. 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 first quarter 2013 earnings call.

An audio archive of the webcast will be available on the company's website at http://investor.associatedbank.com.  A telephone replay will be available one hour after the completion of the call through 8:00 a.m. CT on May 20, 2013, by dialing 877-344-7529 and entering the conference ID number 10027203. The replay number for international callers is 412-317-0088.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $23 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 approximately 240 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:

Brian Klaus, 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

















March 31,


December 31,


Seql Qtr


September 30,


June 30,


March 31,


Comp Qtr

(in thousands)


2013


2012


$ Change


2012


2012


2012


$ Change

Assets















Cash and due from banks


$        336,247


$         563,304


$  (227,057)


$        419,529


$        414,760


$        360,728


$      (24,481)

Interest-bearing deposits in other financial institutions


82,555


147,434


(64,879)


531,303


180,050


344,148


(261,593)

Federal funds sold and securities purchased under agreements to resell


8,600


27,135


(18,535)


2,460


3,800


7,100


1,500

Securities held to maturity, at amortized cost


54,123


39,877


14,246


21,852


-


-


54,123

Securities available for sale, at fair value


4,950,317


4,926,758


23,559


4,496,198


4,521,436


4,669,100


281,217

Federal Home Loan Bank and Federal Reserve Bank stocks, at cost


152,490


166,774


(14,284)


166,100


176,041


177,808


(25,318)

Loans held for sale


173,389


261,410


(88,021)


157,093


157,481


196,570


(23,181)

Loans


15,551,562


15,411,022


140,540


14,966,214


14,698,902


14,253,725


1,297,837

Allowance for loan losses


(286,923)


(297,409)


10,486


(315,150)


(332,658)


(356,298)


69,375

    Loans, net


15,264,639


15,113,613


151,026


14,651,064


14,366,244


13,897,427


1,367,212

Premises and equipment, net


254,674


253,958


716


238,756


225,245


225,164


29,510

Goodwill


929,168


929,168


-


929,168


929,168


929,168


-

Other intangible assets, net


66,294


61,176


5,118


61,294


64,812


68,374


(2,080)

Trading assets


65,014


70,711


(5,697)


76,159


73,484


69,081


(4,067)

Other assets


940,258


926,417


13,841


987,378


968,579


969,002


(28,744)

    Total assets


$   23,277,768


23,487,735


$  (209,967)


$   22,738,354


$   22,081,100


$   21,913,670


$  1,364,098
















Liabilities and Stockholders' Equity















Noninterest-bearing demand deposits


$     4,453,109


4,759,556


$  (306,447)


$     4,320,437


$     3,874,429


$     3,989,156


$     463,953

Interest-bearing deposits


12,968,185


12,180,309


787,876


12,130,155


11,232,442


11,664,220


1,303,965

    Total deposits


17,421,294


16,939,865


481,429


16,450,592


15,106,871


15,653,376


1,767,918

Federal funds purchased and securities sold under agreements to repurchase


730,855


750,455


(19,600)


1,138,027


1,253,270


1,236,219


(505,364)

Other short-term funding


1,038,697


1,576,484


(537,787)


615,258


1,400,000


700,000


338,697

Long-term funding


915,063


1,015,346


(100,283)


1,305,422


1,150,729


1,176,736


(261,673)

Trading liabilities


70,236


76,343


(6,107)


82,861


80,107


75,130


(4,894)

Accrued expenses and other liabilities


165,358


192,843


(27,485)


195,742


180,502


171,336


(5,978)

    Total liabilities


20,341,503


20,551,336


(209,833)


19,787,902


19,171,479


19,012,797


1,328,706

Stockholders' Equity















  Preferred equity


63,272


63,272


-


63,272


63,272


63,272


-

  Common stock


1,750


1,750


-


1,750


1,750


1,750


-

  Surplus


1,605,966


1,602,136


3,830


1,599,070


1,594,995


1,590,336


15,630

  Retained earnings


1,297,692


1,281,811


15,881


1,250,189


1,213,735


1,181,247


116,445

  Accumulated other comprehensive income 


42,991


48,603


(5,612)


67,303


66,579


65,278


(22,287)

  Treasury stock


(75,406)


(61,173)


(14,233)


(31,132)


(30,710)


(1,010)


(74,396)

    Total stockholders' equity


2,936,265


2,936,399


(134)


2,950,452


2,909,621


2,900,873


35,392

    Total liabilities and stockholders' equity


$   23,277,768


23,487,735


$  (209,967)


$   22,738,354


$   22,081,100


$   21,913,670


$  1,364,098

 

















Consolidated Statements of Income (Unaudited)








Associated Banc-Corp










For The Three Months Ended






March 31,


Quarter

(in thousands, except per share amounts)


2013


2012


$ Change

% Change

Interest Income








Interest and fees on loans


$ 145,527


$ 149,023


$ (3,496)

(2.3%)

Interest and dividends on investment securities:








  Taxable


21,613


23,029


(1,416)

(6.1%)

  Tax-exempt


6,965


7,274


(309)

(4.2%)

Other interest 


1,247


1,247


-

0.0%

    Total interest income


175,352


180,573


(5,221)

(2.9%)

Interest Expense








Interest on deposits 


8,541


12,036


(3,495)

(29.0%)

Interest on Federal funds purchased and securities sold under agreements to repurchase


410


767


(357)

(46.5%)

Interest on other short-term funding


332


1,056


(724)

(68.6%)

Interest on long-term funding


8,416


12,046


(3,630)

(30.1%)

    Total interest expense


17,699


25,905


(8,206)

(31.7%)

Net Interest Income


157,653


154,668


2,985

1.9%

Provision for loan losses


4,000


-


4,000

N/M

Net interest income after provision for loan losses


153,653


154,668


(1,015)

(0.7%)

Noninterest Income








Trust service fees


10,910


9,787


1,123

11.5%

Service charges on deposit accounts


16,829


18,042


(1,213)

(6.7%)

Card-based and other nondeposit fees


11,950


10,879


1,071

9.8%

Insurance commissions


11,763


11,590


173

1.5%

Brokerage and annuity commissions


3,516


4,127


(611)

(14.8%)

  Total core fee-based revenue


54,968


54,425


543

1.0%









Mortgage banking, net


17,765


17,654


111

0.6%

Capital market fees, net


2,583


3,716


(1,133)

(30.5%)

Bank owned life insurance income


2,970


4,292


(1,322)

(30.8%)

Asset gains (losses), net


836


(3,594)


4,430

(123.3%)

Investment securities gains, net


300


40


260

N/M

Other


2,578


1,913


665

34.8%

    Total noninterest income


82,000


78,446


3,554

4.5%

Noninterest Expense








Personnel expense


97,907


94,281


3,626

3.8%

Occupancy 


15,662


15,179


483

3.2%

Equipment 


6,167


5,468


699

12.8%

Data processing


11,508


9,516


1,992

20.9%

Business development and advertising


4,537


5,381


(844)

(15.7%)

Other intangible amortization


1,011


1,049


(38)

(3.6%)

Loan expense


3,284


2,910


374

12.9%

Legal and professional fees


5,345


9,715


(4,370)

(45.0%)

Losses other than loans


(316)


3,550


(3,866)

(108.9%)

Foreclosure/OREO expense


2,422


3,362


(940)

(28.0%)

FDIC expense


5,432


4,870


562

11.5%

Other


13,956


14,481


(525)

(3.6%)

    Total noninterest expense


166,915


169,762


(2,847)

(1.7%)

Income before income taxes


68,738


63,352


5,386

8.5%

Income tax expense 


21,350


20,719


631

3.0%

Net income


47,388


42,633


4,755

11.2%

Preferred stock dividends and discount


1,300


1,300


-

0.0%

Net income available to common equity


$   46,088


$   41,333


$  4,755

11.5%









Earnings Per Common Share:








  Basic


$       0.27


$       0.24


$    0.03

12.5%

  Diluted


$       0.27


$       0.24


$    0.03

12.5%









Average Common Shares Outstanding:








  Basic


168,234


173,846


(5,612)

(3.2%)

  Diluted


168,404


173,848


(5,444)

(3.1%)









N/M = Not meaningful.








 



































Consolidated Statements of Income (Unaudited) - Quarterly Trend














Associated Banc-Corp























Sequential Qtr








Comparable Qtr

(in thousands, except per share amounts)


1Q13


4Q12


$ Change

% Change


3Q12


2Q12


1Q12


$ Change

% Change

Interest Income

















Interest and fees on loans


$ 145,527


$ 150,107


$ (4,580)

(3.1%)


$ 149,647


$ 147,188


$ 149,023


$ (3,496)

(2.3%)

Interest and dividends on investment securities:

















  Taxable


21,613


20,368


1,245

6.1%


20,548


23,000


23,029


(1,416)

(6.1%)

  Tax-exempt


6,965


7,119


(154)

(2.2%)


7,127


7,135


7,274


(309)

(4.2%)

Other interest 


1,247


2,876


(1,629)

(56.6%)


1,334


1,262


1,247


-

0.0%

    Total interest income


175,352


180,470


(5,118)

(2.8%)


178,656


178,585


180,573


(5,221)

(2.9%)

Interest Expense

















Interest on deposits 


8,541


9,091


(550)

(6.0%)


9,751


10,553


12,036


(3,495)

(29.0%)

Interest on Federal funds purchased and securities sold under agreements to repurchase


410


558


(148)

(26.5%)


750


612


767


(357)

(46.5%)

Interest on other short-term funding


332


226


106

46.9%


815


1,197


1,056


(724)

(68.6%)

Interest on long-term funding


8,416


9,140


(724)

(7.9%)


11,738


11,956


12,046


(3,630)

(30.1%)

    Total interest expense


17,699


19,015


(1,316)

(6.9%)


23,054


24,318


25,905


(8,206)

(31.7%)

Net Interest Income


157,653


161,455


(3,802)

(2.4%)


155,602


154,267


154,668


2,985

1.9%

Provision for loan losses


4,000


3,000


1,000

33.3%


-


-


-


4,000

N/M

Net interest income after provision for loan losses


153,653


158,455


(4,802)

(3.0%)


155,602


154,267


154,668


(1,015)

(0.7%)

Noninterest Income

















Trust service fees


10,910


10,429


481

4.6%


10,396


10,125


9,787


1,123

11.5%

Service charges on deposit accounts


16,829


16,817


12

0.1%


17,290


16,768


18,042


(1,213)

(6.7%)

Card-based and other nondeposit fees


11,950


12,690


(740)

(5.8%)


12,209


12,084


10,879


1,071

9.8%

Insurance commissions


11,763


10,862


901

8.3%


11,650


12,912


11,590


173

1.5%

Brokerage and annuity commissions


3,516


3,678


(162)

(4.4%)


3,632


4,206


4,127


(611)

(14.8%)

  Total core fee-based revenue


54,968


54,476


492

0.9%


55,177


56,095


54,425


543

1.0%


















Mortgage banking, net


17,765


13,530


4,235

31.3%


15,581


16,735


17,654


111

0.6%

Capital market fees, net


2,583


4,243


(1,660)

(39.1%)


3,609


2,673


3,716


(1,133)

(30.5%)

Bank owned life insurance income


2,970


3,206


(236)

(7.4%)


3,290


3,164


4,292


(1,322)

(30.8%)

Asset gains (losses), net


836


(209)


1,045

N/M


(3,309)


(4,984)


(3,594)


4,430

(123.3%)

Investment securities gains, net


300


152


148

97.4%


3,506


563


40


260

N/M

Other


2,578


2,507


71

2.8%


3,134


1,705


1,913


665

34.8%

    Total noninterest income


82,000


77,905


4,095

5.3%


80,988


75,951


78,446


3,554

4.5%

Noninterest Expense

















Personnel expense


97,907


98,073


(166)

(0.2%)


95,231


93,819


94,281


3,626

3.8%

Occupancy 


15,662


17,273


(1,611)

(9.3%)


14,334


14,008


15,179


483

3.2%

Equipment 


6,167


6,444


(277)

(4.3%)


5,935


5,719


5,468


699

12.8%

Data processing


11,508


11,706


(198)

(1.7%)


11,022


11,304


9,516


1,992

20.9%

Business development and advertising


4,537


5,395


(858)

(15.9%)


5,059


5,468


5,381


(844)

(15.7%)

Other intangible amortization


1,011


1,049


(38)

(3.6%)


1,048


1,049


1,049


(38)

(3.6%)

Loan expense


3,284


3,130


154

4.9%


3,297


2,948


2,910


374

12.9%

Legal and professional fees


5,345


8,174


(2,829)

(34.6%)


7,686


5,657


9,715


(4,370)

(45.0%)

Losses other than loans


(316)


3,071


(3,387)

(110.3%)


3,577


2,060


3,550


(3,866)

(108.9%)

Foreclosure/OREO expense


2,422


3,293


(871)

(26.5%)


4,071


4,343


3,362


(940)

(28.0%)

FDIC expense


5,432


4,813


619

12.9%


5,017


4,778


4,870


562

11.5%

Other


13,956


13,907


49

0.4%


13,426


14,877


14,481


(525)

(3.6%)

    Total noninterest expense


166,915


176,328


(9,413)

(5.3%)


169,703


166,030


169,762


(2,847)

(1.7%)

Income before income taxes


68,738


60,032


8,706

14.5%


66,887


64,188


63,352


5,386

8.5%

Income tax expense 


21,350


13,404


7,946

59.3%


20,492


20,871


20,719


631

3.0%

Net income


47,388


46,628


760

1.6%


46,395


43,317


42,633


4,755

11.2%

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


$   46,088


$   45,328


$     760

1.7%


$   45,095


$   42,017


$   41,333


$  4,755

11.5%


















Earnings Per Common Share:

















  Basic


$       0.27


$       0.26


$    0.01

3.8%


$       0.26


$       0.24


$       0.24


$    0.03

12.5%

  Diluted


$       0.27


$       0.26


$    0.01

3.8%


$       0.26


$       0.24


$       0.24


$    0.03

12.5%


















Average Common Shares Outstanding:

















  Basic


168,234


170,707


(2,473)

(1.4%)


171,650


172,839


173,846


(5,612)

(3.2%)

  Diluted


168,404


170,896


(2,492)

(1.5%)


171,780


172,841


173,848


(5,444)

(3.1%)


















N/M = Not meaningful.

















 












Selected Quarterly Information











Associated Banc-Corp











(in thousands, except per share, full time equivalent employee data and otherwise noted)


1st Qtr 2013


4th Qtr 2012


3rd Qtr 2012


2nd Qtr 2012


1st Qtr 2012

Summary of Operations











Net interest income


$      157,653


$      161,455


$      155,602


$      154,267


$      154,668

Provision for loan losses


4,000


3,000


-


-


-

Asset gains (losses), net


836


(209)


(3,309)


(4,984)


(3,594)

Investment securities gains, net


300


152


3,506


563


40

Noninterest income (excluding securities & asset gains)


80,864


77,962


80,791


80,372


82,000

Noninterest expense


166,915


176,328


169,703


166,030


169,762

Income before income taxes


68,738


60,032


66,887


64,188


63,352

Income tax expense


21,350


13,404


20,492


20,871


20,719

Net income


47,388


46,628


46,395


43,317


42,633

Net income available to common equity


46,088


45,328


45,095


42,017


41,333

Taxable equivalent adjustment


5,090


5,221


5,268


5,254


5,303












Per Common Share Data 











Net income:











  Basic


$            0.27


$            0.26


$            0.26


$            0.24


$            0.24

  Diluted


0.27


0.26


0.26


0.24


0.24

Dividends


0.08


0.08


0.05


0.05


0.05

Market Value:











  High


$          15.30


$          13.54


$          13.79


$          13.97


$          14.63

  Low


13.46


12.19


12.04


11.76


11.43

  Close


15.19


13.12


13.16


13.19


13.96

Book value


17.13


16.97


16.82


16.59


16.32

Tier 1 common equity / share


11.22


11.08


10.89


10.66


10.46

Tangible book value


11.51


11.39


11.31


11.07


10.87












Performance Ratios (annualized)











Earning assets yield


3.52%


3.70%


3.73%


3.80%


3.85%

Interest-bearing liabilities rate


0.45


0.51


0.62


0.65


0.70

Net interest margin


3.17


3.32


3.26


3.30


3.31

Return on average assets


0.83


0.83


0.84


0.80


0.79

Return on average tangible common equity


9.81


9.15


9.32


8.87


8.85

Return on average Tier 1 common equity (1)


10.07


9.61


9.69


9.26


9.23

Efficiency ratio (2)


68.52


72.08


70.22


69.21


70.16

Effective tax rate


31.06


22.33


30.64


32.52


32.70

Dividend payout ratio (3)


29.63


30.77


19.23


20.83


20.83












Average Balances











Assets


$ 23,038,708


$ 22,461,886


$ 22,016,748


$ 21,684,600


$ 21,659,139

Earning assets


20,680,919


20,032,432


19,659,796


19,386,046


19,371,729

Interest-bearing liabilities


15,719,383


14,840,162


14,940,697


14,922,006


14,920,413

Loans (4)


15,448,152


15,131,102


14,916,793


14,602,602


14,310,441

Deposits


17,146,384


16,650,268


15,615,856


15,050,684


15,000,567

Short and long-term funding


2,758,923


2,638,661


3,286,943


3,566,346


3,603,700

Common stockholders' equity


2,850,227


2,915,346


2,870,438


2,852,050


2,826,913

Stockholders' equity


2,913,499


2,978,618


2,933,710


2,915,322


2,890,185

Average Tier 1 common equity (5)


1,856,431


1,876,686


1,850,610


1,825,441


1,801,649












At Period End











Assets


$ 23,277,768


$ 23,487,735


$ 22,738,354


$ 22,081,100


$ 21,913,670

Loans


15,551,562


15,411,022


14,966,214


14,698,902


14,253,725

Allowance for loan losses


286,923


297,409


315,150


332,658


356,298

Goodwill


929,168


929,168


929,168


929,168


929,168

Mortgage servicing rights, net


52,078


45,949


45,018


47,488


50,001

Other intangible assets, net


14,216


15,227


16,276


17,324


18,373

Deposits


17,421,294


16,939,865


16,450,592


15,106,871


15,653,376

Loans / deposits


89.27%


90.97%


90.98%


97.30%


91.06%

Risk weighted assets ($ in millions) (6)


16,163


16,149


15,575


15,188


14,570

Tier 1 common equity (5)


1,881,410


1,875,534


1,869,931


1,828,529


1,819,782

Stockholders' equity / assets


12.61%


12.50%


12.98%


13.18%


13.24%

Tangible common equity / tangible assets (7)


8.64%


8.56%


8.91%


8.99%


9.01%

Tangible equity / tangible assets (8)


8.92%


8.84%


9.20%


9.29%


9.32%

Tier 1 common equity / risk-weighted assets (6)


11.64%


11.61%


12.01%


12.04%


12.49%

Tier 1 leverage ratio (6)


8.78%


8.98%


9.99%


9.95%


10.03%

Tier 1 risk-based capital ratio (6)


12.03%


12.01%


13.57%


13.64%


14.33%

Total risk-based capital ratio (6)


13.45%


13.42%


15.00%


15.08%


15.78%

Shares outstanding, end of period


167,673


169,304


171,657


171,611


173,923












Selected trend information











Average full time equivalent employees


4,841


4,915


4,965


4,951


5,045

Trust assets under management, at market value ($ in millions)


$          6,913


$          6,454


$          6,163


$          5,934


$          5,983

Mortgage loans originated for sale during period


681,410


780,469


715,184


738,091


563,688

Mortgage portfolio serviced for others ($ in millions)


7,585


7,453


7,547


7,511


7,284

Mortgage servicing rights, net / Portfolio serviced for others


0.69%


0.62%


0.60%


0.63%


0.69%












(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) March 31, 2013 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














Mar13 vs Dec12





Mar13 vs Mar12

(in thousands)


Mar 31, 2013

Dec 31, 2012

% Change


Sep 30, 2012

Jun 30, 2012

Mar 31, 2012

% Change

Allowance for Loan Losses










Beginning balance


$         297,409

$        315,150

(5.6%)


$       332,658

$       356,298

$         378,151

(21.4%)

Provision for loan losses


4,000

3,000

33.3%


-

-

-

N/M

Charge offs


(27,128)

(30,417)

(10.8%)


(25,030)

(30,340)

(31,259)

(13.2%)

Recoveries


12,642

9,676

30.7%


7,522

6,700

9,406

34.4%

Net charge offs


(14,486)

(20,741)

(30.2%)


(17,508)

(23,640)

(21,853)

(33.7%)

Ending balance


$         286,923

$        297,409

(3.5%)


$       315,150

$       332,658

$         356,298

(19.5%)











Reserve for losses on unfunded commitments


$           21,100

$          21,800

(3.2%)


$         19,800

$         18,900

$           15,600

35.3%





















Net Charge Offs




Mar13 vs Dec12





Mar13 vs Mar12



Mar 31, 2013

Dec 31, 2012

% Change


Sep 30, 2012

Jun 30, 2012

Mar 31, 2012

% Change

Commercial and industrial


$                696

$            2,630

(73.5%)


$           3,831

$         14,544

$             3,872

(82.0%)

Commercial real estate - owner occupied


1,518

2,056

(26.2%)


(8)

1,164

415

N/M

Lease financing


(12)

754

N/M


(20)

-

(1,836)

(99.3%)

  Commercial and business lending


2,202

5,440

(59.5%)


3,803

15,708

2,451

(10.2%)

Commercial real estate - investor


163

(232)

N/M


1,905

177

7,354

(97.8%)

Real estate construction


1,392

858

62.2%


(187)

558

230

N/M

  Commercial real estate lending


1,555

626

148.4%


1,718

735

7,584

(79.5%)

    Total commercial


3,757

6,066

(38.1%)


5,521

16,443

10,035

(62.6%)

Home equity revolving lines of credit


3,615

3,590

0.7%


4,180

2,637

5,604

(35.5%)

Home equity loans 1st liens


765

1,060

(27.8%)


1,056

778

806

(5.1%)

Home equity loans junior liens


1,957

3,421

(42.8%)


2,686

1,869

2,540

(23.0%)

  Home equity 


6,337

8,071

(21.5%)


7,922

5,284

8,950

(29.2%)

Installment


177

1,027

(82.8%)


324

371

101

75.2%

Residential mortgage


4,215

5,577

(24.4%)


3,741

1,542

2,767

52.3%

  Total consumer


10,729

14,675

(26.9%)


11,987

7,197

11,818

(9.2%)

        Total net charge offs


$           14,486

$          20,741

(30.2%)


$         17,508

$         23,640

$           21,853

(33.7%)











Net Charge Offs to Average Loans (in basis points) *


Mar 31, 2013

Dec 31, 2012



Sep 30, 2012

Jun 30, 2012

Mar 31, 2012


Commercial and industrial


6

25



37

151

42


Commercial real estate - owner occupied


51

69



(0)

43

16


Lease financing


(8)

480



(13)

-

 N/M 


  Commercial and business lending


16

40



29

126

20


Commercial real estate - investor


2

(3)



27

3

113


Real estate construction


82

54



(12)

40

16


  Commercial real estate lending


18

7



20

9

96


    Total commercial


17

27



25

79

50


Home equity revolving lines of credit


159

148



167

104

215


Home equity loans 1st liens


32

40



38

28

29


Home equity loans junior liens


303

486



361

240

307


  Home equity 


119

140



132

86

144


Installment


16

86



26

28

7


Residential mortgage


47

64



45

19

34


  Total consumer


70

93



77

46

76


        Total net charge offs


38

55



47

65

61






















Credit Quality




Mar13 vs Dec12





Mar13 vs Mar12



Mar 31, 2013

Dec 31, 2012

% Change


Sep 30, 2012

Jun 30, 2012

Mar 31, 2012

% Change

Nonaccrual loans


$         225,436

$        252,868

(10.8%)


$       278,172

$       317,872

$         327,085

(31.1%)

Other real estate owned (OREO)


35,156

34,900

0.7%


36,053

40,029

34,425

2.1%

    Total nonperforming assets


$         260,592

$        287,768

(9.4%)


$       314,225

$       357,901

$         361,510

(27.9%)











Loans 90 or more days past due and still accruing


5,690

2,289

148.6%


2,334

5,224

2,497

127.9%

Restructured loans (accruing)


120,093

121,087

(0.8%)


135,791

122,229

120,719

(0.5%)











Allowance for loan losses / loans


1.84%

1.93%



2.11%

2.26%

2.50%


Allowance for loan losses / nonaccrual loans


127.27

117.61



113.29

104.65

108.93


Nonaccrual loans / total loans


1.45

1.64



1.86

2.16

2.29


Nonperforming assets / total loans plus OREO


1.67

1.86



2.09

2.43

2.53


Nonperforming assets / total assets


1.12

1.23



1.38

1.62

1.65


Net charge offs / average loans (annualized)


0.38

0.55



0.47

0.65

0.61


Year-to-date net charge offs / average loans


0.38

0.57



0.58

0.63

0.61












Nonaccrual loans by type:










Commercial and industrial


$           33,242

$          39,182

(15.2%)


$         41,694

$         46,111

$           50,641

(34.4%)

Commercial real estate - owner occupied


23,199

24,254

(4.3%)


27,161

33,417

31,888

(27.2%)

Lease financing


2,165

3,031

(28.6%)


5,927

8,260

9,040

(76.1%)

  Commercial and business lending


58,606

66,467

(11.8%)


74,782

87,788

91,569

(36.0%)

Commercial real estate - investor


56,776

58,687

(3.3%)


71,522

88,806

89,030

(36.2%)

Real estate construction


22,166

27,302

(18.8%)


31,684

36,403

36,471

(39.2%)

  Commercial real estate lending


78,942

85,989

(8.2%)


103,206

125,209

125,501

(37.1%)

    Total commercial


137,548

152,456

(9.8%)


177,988

212,997

217,070

(36.6%)

Home equity revolving lines of credit


15,914

20,446

(22.2%)


19,242

22,651

25,631

(37.9%)

Home equity loans 1st liens


8,626

8,717

(1.0%)


9,425

7,870

8,286

4.1%

Home equity loans junior liens


9,405

10,052

(6.4%)


9,800

11,015

10,711

(12.2%)

  Home equity 


33,945

39,215

(13.4%)


38,467

41,536

44,628

(23.9%)

Installment


1,762

1,838

(4.1%)


2,893

3,047

2,627

(32.9%)

Residential mortgage


52,181

59,359

(12.1%)


58,824

60,292

62,760

(16.9%)

  Total consumer


87,888

100,412

(12.5%)


100,184

104,875

110,015

(20.1%)

        Total nonaccrual loans


$         225,436

$        252,868

(10.8%)


$       278,172

$       317,872

$         327,085

(31.1%)