Associated Reports First Quarter Earnings of $0.27 per share

Earnings per share up 12.5% from a year ago

Apr 18, 2013, 16:05 ET from Associated Banc-Corp

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%)