Associated Reports Fourth Quarter Earnings of $0.26 per share

Full year net income to common shareholders up 51% from a year ago

Jan 17, 2013, 16:59 ET from Associated Banc-Corp

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 11th 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 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 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%)

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

558

1,278

(720)

(56.3%)

2,687

6,196

(3,509)

(56.6%)

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%

Net interest income after provision for loan losses

158,455

155,602

2,853

1.8%

154,267

154,668

150,825

7,630

5.1%

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