GREEN BAY, Wis.--(BUSINESS WIRE)--April 22, 2004--Associated
Banc-Corp (Nasdaq:ASBC) earned $0.80 per diluted share in the first
quarter of 2004, compared to $0.77 and $0.75 per diluted share for the
first and fourth quarters of 2003, respectively.
Return on average assets was 1.57 percent and return on average
equity was 17.37 percent in 2004, compared to 1.58 percent and 18.36
percent, respectively, for the first quarter of 2003, on an annualized
basis. Compared to fourth quarter 2003, return on average assets was
up 8 basis points, and return on average equity increased 52 basis
points. Book value per share rose to $19.00 at March 31, 2004.
"Our performance in the first quarter is evidence of significant
progress toward implementing our strategic priorities," Associated
President and CEO Paul Beideman said. "We are experiencing positive
momentum in our wealth management and consumer businesses, as well as
improved volume in our commercial banking business."
"As a result of our efforts over the last six months, asset
quality has improved significantly. Additionally, our focus on expense
management is creating positive operating leverage," Beideman said.
The comparison between the first quarter periods was impacted by
anticipated changes in mortgage banking, as higher mortgage rates
caused a slow-down in refinancing activity throughout the industry
beginning in fourth quarter 2003. While mortgage banking fee revenue
was down $15.5 million, the higher mortgage rates supported greater
value of the servicing asset, lowering mortgage servicing rights
expense by $4.8 million for a net $10.7 million impact between first
quarter periods.
Also, the timing of a first quarter 2003 credit card merchant
processing sale and services agreement (including a $3.4 million gain
recorded as other income during first quarter 2003) and Associated's
acquisition of CFG Insurance Services, Inc. on April 1, 2003, impacted
the comparison of noninterest income and expense between first
quarters.
Net interest income rose to $129.1 million in the first quarter,
compared to $127.5 million and $127.1 million in the first and fourth
quarters of 2003, respectively. The net interest margin was 3.80
percent, compared to 3.87 percent for first quarter 2003 and 3.81
percent for fourth quarter 2003.
Total loans at the end of the first quarter 2004 were $10.5
billion, up from $10.3 billion at the end of the first quarter of
2003, including 4 percent growth in commercial loans and 17 percent
growth in home equity loans. Total loans increased 8 percent on an
annualized basis since year-end 2003, led by 9 percent annualized
growth in commercial loans and 16 percent annualized growth in home
equity loans. Total deposits were $9.7 billion, up 7 percent from $9.1
billion a year earlier, and relatively unchanged from $9.8 billion at
year-end 2003.
The company's credit quality showed improvement, benefiting first
quarter 2004 results. Total nonperforming loans were $93.6 million, or
0.89 percent of total loans in the first quarter, down from $94.7
million, or 0.92 percent of loans a year ago, and $121.5 million, or
1.18 percent of loans at year-end 2003. More than half of the
improvement in nonperforming loans since year end came from paydowns
on two large problem loans, as management continues to work through
problem credits. Also, first quarter net charge-offs of $5.1 million
(0.20 percent of average loans annualized) were unchanged from first
quarter 2003 and down from $8.2 million (0.31 percent annualized) in
fourth quarter 2003. Accordingly, the provision for loan losses
declined to $5.2 million for first quarter 2004, compared to $13.0
million and $9.6 million in the first and fourth quarters of 2003,
respectively. The allowance for loan losses was 1.69 percent of total
loans at March 31, 2004, compared to 1.66 percent a year ago and 1.73
percent at December 31, 2003.
Excluding mortgage fee revenue, as previously discussed,
noninterest income was $43.9 million for first quarter 2004, up from
$39.1 million for the first quarter of 2003, and $42.7 million for
fourth quarter 2003. Compared to the first quarter of 2003, insurance
and brokerage retail commissions increased $6.1 million (primarily due
to CFG), trust revenue was up $1.2 million, and service charges on
deposit accounts were up $0.6 million.
Excluding mortgage servicing rights expense, as previously
discussed, noninterest expense was $86.9 million for first quarter,
compared to $85.0 million for the comparable 2003 period, and down
from $93.4 million for fourth quarter 2003. The $1.9 million increase
from the same period last year was primarily a result of including CFG
operating expenses, offset by lower merchant processing costs.
Compared to the fourth quarter of 2003, the $6.5 million decline was
primarily the result of a $2.1 million decline in personnel expense,
and expense control on discretionary spending.
"Our strategic priorities to diversify revenue streams and manage
risk are taking hold and overcoming the market-driven decline in
mortgage banking," Beideman said.
"Additionally, we are excited about our previously announced April
1 acquisition of Jabas Group, Inc. Jabas is one of Wisconsin's leading
employee benefit firms, and will complement our growing insurance
revenues," he said.
"Given our improving sales effectiveness, our expense discipline,
and improving asset quality trends, we are optimistic we can achieve
or exceed the consensus of analysts' estimates for our 2004 earnings,"
Beideman said.
The company will host a conference call for investors and analysts
at 3 p.m. today. The toll-free dial-in number is 877-654-5513.
Participants should ask the operator for the Associated Banc-Corp
earnings call, number 696-0660. An archived recording of the call will
be available for one week.
Associated Banc-Corp has 218 banking offices serving more than 150
communities in Wisconsin, Illinois, and Minnesota. The company offers
a full range of traditional banking services and a variety of other
financial products and services. More information about Associated
Banc-Corp is available at www.AssociatedBank.com.
Statements made in this document that 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. Forward-looking statements are based on
current management expectations and, by their nature, are subject to
risks and uncertainties. These statements may be identified by the use
of words such as "believe," "expect," "anticipate," "plan,"
"estimate," "should," "will," "intend," or similar expressions.
Outcomes related to such statements are subject to numerous risk
factors and uncertainties including those listed in the company's
Annual Report filed on Form 10-K.
----------------------------------------------------------------------
Consolidated Balance Sheets (Unaudited)
Associated Banc-CorpMarch 31, December 31, % March 31, %
(in thousands) 2004 2003 Change 2003 Change
----------------------------------------------------------------------
Assets
Cash and due
from banks $323,686 $389,140 (16.8%) $401,012 (19.3%)
Interest-
bearing deposits
in other
financial
institutions 17,057 7,434 129.4% 13,640 25.1%
Federal funds
sold and securities
purchased under
agreements to
resell 7,000 3,290 112.8% 27,815 (74.8%)
Securities
available for
sale, at fair
value 3,883,470 3,773,784 2.9% 3,379,000 14.9%
Loans held for
sale 120,699 104,336 15.7% 374,053 (67.7%)
Loans 10,486,610 10,291,810 1.9% 10,275,469 2.1%
Allowance for
loan losses (177,717) (177,622) 0.1% (170,391) 4.3%
------------ ------------ ------------
Loans, net 10,308,893 10,114,188 1.9% 10,105,078 2.0%
Premises and
equipment 130,028 131,315 (1.0%) 132,234 (1.7%)
Goodwill 224,388 224,388 0.0% 212,112 5.8%
Intangible
assets 59,899 63,509 (5.7%) 38,251 56.6%
Other assets 435,748 436,510 (0.2%) 405,971 7.3%
------------ ------------ ------------
Total assets $15,510,868 $15,247,894 1.7% $15,089,166 2.8%
============ ============ ============
Liabilities and
Stockholders'Equity
Noninterest-
bearing
deposits $1,755,485 $1,814,446 (3.2%) $1,692,979 3.7%
Interest-
bearing
deposits,
excluding
Brokered CDs 7,716,290 7,813,267 (1.2%) 7,158,585 7.8%
Brokered CDs 230,983 165,130 39.9% 208,670 10.7%
------------ ------------ ------------
Total deposits 9,702,758 9,792,843 (0.9%) 9,060,234 7.1%
Short-term
borrowings 2,516,270 1,928,876 30.5% 2,422,631 3.9%
Long-term
funding 1,749,418 2,034,160 (14.0%) 2,142,978 (18.4%)
Accrued expenses
and other
liabilities 147,129 143,588 2.5% 177,457 (17.1%)
------------ ------------ ------------
Total
liabilities 14,115,575 13,899,467 1.6% 13,803,300 2.3%
Stockholders'
Equity
Preferred
stock - - -
Common stock 736 734 0.3% 748 (1.6%)
Surplus 582,928 575,975 1.2% 621,616 (6.2%)
Retained
earnings 755,627 724,356 4.3% 637,781 18.5%
Accumulated
other
comprehensive
income 66,526 52,089 27.7% 56,302 18.2%
Deferred
compensation (1,981) (1,981) 0.0% - N/M
Treasury
stock,
at cost (8,543) (2,746) 211.1% (30,581) (72.1%)
------------ ------------ ------------
Total
stockholders'
equity 1,395,293 1,348,427 3.5% 1,285,866 8.5%
------------ ------------ ------------
Total
liabilities
and
stockholders'
equity $15,510,868 $15,247,894 1.7% $15,089,166 2.8%
============ ============ ============
N/M - Not
meaningful.
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months Ended,
March 31,
-------------------
(in thousands, except per share amounts) 2004 2003 % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans $135,252 $148,496 (8.9%)
Interest and dividends on investment
securities and deposits with other
financial institutions
Taxable 31,032 26,797 15.8%
Tax-exempt 10,235 10,055 1.8%
Interest on federal funds sold and
securities purchased under agreements
to resell 27 35 (22.9%)
--------- ---------
Total interest income 176,546 185,383 (4.8%)
Interest Expense
Interest on deposits 27,554 31,990 (13.9%)
Interest on short-term borrowings 6,539 8,567 (23.7%)
Interest on long-term funding 13,378 17,372 (23.0%)
--------- ---------
Total interest expense 47,471 57,929 (18.1%)
--------- ---------
Net Interest Income 129,075 127,454 1.3%
Provision for loan losses 5,176 12,960 (60.1%)
--------- ---------
Net interest income after provision for
loan losses 123,899 114,494 8.2%
Noninterest Income
Trust service fees 7,868 6,630 18.7%
Service charges on deposit accounts 12,397 11,811 5.0%
Mortgage banking 9,026 24,500 (63.2%)
Credit card and other nondeposit fees 5,671 7,396 (23.3%)
Retail commissions 9,357 3,303 183.3%
Bank owned life insurance income 3,355 3,391 (1.1%)
Asset sale gains, net 222 122 82.0%
Investment securities
gains (losses), net 1,931 (326) N/M
Other 3,132 6,779 (53.8%)
--------- ---------
Total noninterest income 52,959 63,606 (16.7%)
Noninterest Expense
Personnel expense 52,276 48,836 7.0%
Occupancy 7,472 7,115 5.0%
Equipment 2,999 3,244 (7.6%)
Data processing 5,673 5,618 1.0%
Business development and advertising 2,657 3,363 (21.0%)
Stationery and supplies 1,226 1,679 (27.0%)
Mortgage servicing rights expense 6,772 11,598 (41.6%)
Other intangible amortization 782 350 123.4%
Loan expense 1,386 3,348 (58.6%)
Other 12,413 11,403 8.9%
--------- ---------
Total noninterest expense 93,656 96,554 (3.0%)
--------- ---------
Income before income taxes 83,202 81,546 2.0%
Income tax expense 23,642 23,553 0.4%
--------- ---------
Net Income $59,560 $57,993 2.7%
========= =========
Earnings Per Share:
Basic $ 0.81 $ 0.78 3.8%
Diluted $ 0.80 $ 0.77 3.9%
Average Shares Outstanding:
Basic 73,529 74,252 (1.0%)
Diluted 74,553 74,974 (0.6%)
N/M - Not meaningful.
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited) - Quarterly Trend
Associated Banc-Corp
(in thousands, except
per share amounts) 1Q04 4Q03 3Q03 2Q03 1Q03
----------------------------------------------------------------------
Interest Income
Interest and fees on
loans $135,252 $137,289 $145,246 $147,785 $148,496
Interest and
dividends on
investment
securities
and deposits in
other financial
institutions:
Taxable 31,032 29,194 26,710 25,923 26,797
Tax-exempt 10,235 9,939 9,825 9,942 10,055
Interest on federal
funds sold and
securities
purchased under
agreements to
resell 27 36 38 54 35
--------- --------- --------- --------- ---------
Total interest
income 176,546 176,458 181,819 183,704 185,383
Interest Expense
Interest on deposits 27,554 29,247 30,327 31,558 31,990
Interest on short-term
borrowings 6,539 5,390 6,757 8,442 8,567
Interest on long-term
funding 13,378 14,684 15,759 16,509 17,372
--------- --------- --------- --------- ---------
Total interest
expense 47,471 49,321 52,843 56,509 57,929
--------- --------- --------- --------- ---------
Net Interest Income 129,075 127,137 128,976 127,195 127,454
Provision for loan
losses 5,176 9,603 12,118 12,132 12,960
--------- --------- --------- --------- ---------
Net interest income
after provision for
loan losses 123,899 117,534 116,858 115,063 114,494
Noninterest Income
Trust service fees 7,868 8,150 7,001 7,796 6,630
Service charges on
deposit accounts 12,397 12,735 13,338 12,462 11,811
Mortgage banking 9,026 9,753 21,671 27,113 24,500
Credit card and
other nondeposit
fees 5,671 5,646 5,435 5,192 7,396
Retail commissions 9,357 8,031 6,830 7,407 3,303
Bank owned life
insurance income 3,355 3,417 3,532 3,450 3,391
Asset sale gains
(losses), net 222 1,366 871 (790) 122
Investment
securities gains
(losses), net 1,931 - 1 1,027 (326)
Other 3,132 3,379 3,245 4,771 6,779
--------- --------- --------- --------- ---------
Total noninterest
income 52,959 52,477 61,924 68,428 63,606
Noninterest Expense
Personnel expense 52,276 54,391 53,080 51,733 48,836
Occupancy 7,472 6,710 7,101 7,151 7,115
Equipment 2,999 3,206 3,178 3,190 3,244
Data processing 5,673 5,731 6,322 5,602 5,618
Business development
and advertising 2,657 4,165 4,113 3,553 3,363
Stationery and
supplies 1,226 1,741 1,651 1,634 1,679
Mortgage servicing
rights expense 6,772 735 4,199 13,021 11,598
Other intangible
amortization 782 870 871 870 350
Loan expense 1,386 1,446 1,806 950 3,348
Other 12,413 15,125 13,486 14,483 11,403
--------- --------- --------- --------- ---------
Total noninterest
expense 93,656 94,120 95,807 102,187 96,554
--------- --------- --------- --------- ---------
Income before income
taxes 83,202 75,891 82,975 81,304 81,546
Income tax expense 23,642 20,282 24,589 24,635 23,553
--------- --------- --------- --------- ---------
Net Income $59,560 $55,609 $58,386 $56,669 $57,993
========= ========= ========= ========= =========
Earnings Per Share:
Basic $ 0.81 $ 0.76 $ 0.79 $ 0.77 $ 0.78
Diluted $ 0.80 $ 0.75 $ 0.79 $ 0.76 $ 0.77
Average Shares
Outstanding:
Basic 73,529 73,310 73,473 73,959 74,252
Diluted 74,553 74,332 74,323 74,683 74,974
----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands, except per
share & full time equivalent
employee data) 1st Qtr 2004 4th Qtr 2003 3rd Qtr 2003
----------------------------------------------------------------------
Summary of Operations
Net interest income 129,075 127,137 128,976
Provision for loan losses 5,176 9,603 12,118
Asset sale gains (losses), net 222 1,366 871
Investment securities gains
(losses), net 1,931 - 1
Noninterest income (excluding
securities & asset gains) 50,806 51,111 61,052
Noninterest expense 93,656 94,120 95,807
Income before income taxes 83,202 75,891 82,975
Income taxes 23,642 20,282 24,589
Net income 59,560 55,609 58,386
Taxable equivalent adjustment 6,404 6,230 6,165
----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
Basic $ 0.81 $ 0.76 $ 0.79
Diluted 0.80 0.75 0.79
Dividends 0.34 0.34 0.34
Market Value:
High $ 45.55 $ 43.13 $ 38.90
Low 42.12 38.81 37.12
Close 44.79 42.80 37.89
Book value 19.00 18.39 17.77
----------------------------------------------------------------------
Performance Ratios
(annualized)
Net interest margin (FTE) 3.80% 3.81% 3.78%
Return on average assets 1.57 1.49 1.53
Return on average equity 17.37 16.85 17.75
Efficiency ratio (2) 50.28 51.02 48.83
Effective tax rate 28.42 26.73 29.63
Dividend payout ratio (3) 41.98 44.74 43.04
----------------------------------------------------------------------
Average Balances
Assets $15,261,277 $14,852,390 $15,152,676
Earning assets 14,185,569 13,828,992 14,128,702
Interest-bearing liabilities 12,083,003 11,637,646 11,955,420
Loans 10,433,411 10,354,726 10,813,769
Deposits 9,585,074 9,679,789 9,485,000
Stockholders' equity 1,378,804 1,309,167 1,304,983
Stockholders' equity / assets 9.03% 8.81% 8.61%
----------------------------------------------------------------------
At Period End
Assets $15,510,868 $15,247,894 $15,114,169
Loans 10,486,610 10,291,810 10,289,242
Allowance for loan losses 177,717 177,622 176,223
Goodwill 224,388 224,388 224,388
Mortgage servicing rights, net 39,649 42,477 36,663
Other intangible assets 20,250 21,032 21,902
Deposits 9,702,758 9,792,843 9,635,356
Stockholders' equity 1,395,293 1,348,427 1,300,948
Stockholders' equity / assets 9.00% 8.84% 8.61%
Shares outstanding, end of
period 73,445 73,311 73,227
Shares repurchased during
period 328 141 727
Average per share cost of
shares repurchased during
period $43.98 $42.27 $37.46
----------------------------------------------------------------------
Selected trend information
Average full time equivalent
employees 4,024 4,098 4,173
Trust assets under management,
at market value $4,300,000 $4,100,000 $3,800,000
Mortgage loans originated for
sale 359,791 524,118 1,422,747
Portfolio serviced for others 5,904,000 5,928,000 5,587,000
Mortgage servicing rights,
net / Portfolio serviced
for others 0.67% 0.72% 0.66%
----------------------------------------------------------------------
(in thousands, except per share
& full time equivalent employee data) 2nd Qtr 2003 1st Qtr 2003
----------------------------------------------------------------------
Summary of Operations
Net interest income 127,195 127,454
Provision for loan losses 12,132 12,960
Asset sale gains (losses), net (790) 122
Investment securities gains
(losses), net 1,027 (326)
Noninterest income (excluding
securities & asset gains) 68,191 63,810
Noninterest expense 102,187 96,554
Income before income taxes 81,304 81,546
Income taxes 24,635 23,553
Net income 56,669 57,993
Taxable equivalent adjustment 6,231 6,277
----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
Basic $ 0.77 $ 0.78
Diluted 0.76 0.77
Dividends 0.34 0.31
Market Value:
High $ 38.41 $ 35.22
Low 32.15 32.33
Close 36.61 32.33
Book value 17.88 17.41
----------------------------------------------------------------------
Performance Ratios
(annualized)
Net interest margin (FTE) 3.79% 3.87%
Return on average assets 1.51 1.58
Return on average equity 17.37 18.36
Efficiency ratio (2) 50.68 48.88
Effective tax rate 30.30 28.88
Dividend payout ratio (3) 44.16 39.74
----------------------------------------------------------------------
Average Balances
Assets $15,016,497 $14,867,339
Earning assets 13,991,615 13,836,102
Interest-bearing liabilities 11,941,877 11,886,642
Loans 10,743,430 10,578,430
Deposits 9,121,204 8,901,441
Stockholders' equity 1,308,505 1,280,950
Stockholders' equity / assets 8.71% 8.62%
----------------------------------------------------------------------
At Period End
Assets $15,218,816 $15,089,166
Loans 10,387,364 10,275,469
Allowance for loan losses 172,440 170,391
Goodwill 224,388 212,112
Mortgage servicing rights, net 27,784 29,359
Other intangible assets 22,772 8,892
Deposits 9,453,460 9,060,234
Stockholders' equity 1,318,246 1,285,866
Stockholders' equity / assets 8.66% 8.52%
Shares outstanding, end of
period 73,736 73,870
Shares repurchased during
period 476 717
Average per share cost of
shares repurchased during
period $ 36.12 $ 33.69
----------------------------------------------------------------------
Selected trend information
Average full time equivalent
employees 4,145 4,075
Trust assets under management,
at market value $3,800,000 $3,400,000
Mortgage loans originated for
sale 1,229,022 1,097,520
Portfolio serviced for others 5,471,000 5,449,000
Mortgage servicing rights,
net / Portfolio
serviced for others 0.51% 0.54%
(1) Per share data adjusted retroactively for stock splits and stock
dividends.
(2) Efficiency ratio = Noninterest expense divided by sum of taxable
equivalent net interest income plus noninterest income, excluding
investment securities gains, net, and asset sales gains, net.
(3) Ratio is based upon basic earnings per share.
----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp Three months ended
March 31,
-----------------------------
(in thousands) 2004 2003 % Change
---------------------------------------- --------- --------- ---------
Allowance for Loan Losses
Beginning balance $177,622 $162,541 9.3%
Provision for loan losses 5,176 12,960 (60.1%)
Charge offs (6,062) (5,754) 5.4%
Recoveries 981 644 52.3%
--------- ---------
Net charge offs (5,081) (5,110) (0.6%)
--------- ---------
Ending Balance $177,717 $170,391 4.3%
========= =========
----------------------------------------------------------------------
Credit Quality
1Q04
vs
Mar 31, Dec 31, 4Q03
2004 2003 % Change
--------- --------- ---------
Nonaccrual loans $88,313 $113,944 (22.5%)
Loans 90 or more days past due
and still accruing 5,258 7,495 (29.8%)
Restructured loans 42 43 (2.3%)
--------- ---------
Total nonperforming loans 93,613 121,482 (22.9%)
Other real estate owned 7,199 5,457 31.9%
--------- ---------
Total nonperforming assets 100,812 126,939 (20.6%)
========= =========
Provision for loan losses 5,176 9,603 (46.1%)
Net charge offs 5,081 8,204 (38.1%)
Allowance for loan losses /
loans 1.69% 1.73%
Allowance for loan losses /
nonperforming loans 189.84 146.21
Nonperforming loans / total
loans 0.89 1.18
Nonperforming assets / total
assets 0.65 0.83
Net charge offs / average
loans (annualized) 0.20 0.31
Year-to-date net charge offs /
average loans 0.20 0.30
1Q04
vs
Sept 30, June 30, Mar 31, 1Q03
2003 2003 2003 % Change
--------- --------- --------- ---------
Nonaccrual loans $114,067 $110,820 $90,384 (2.3%)
Loans 90 or more days past due
and still accruing 11,055 6,311 3,425 53.5%
Restructured loans 44 46 844 (95.0%)
--------- --------- ---------
Total nonperforming loans 125,166 117,177 94,653 (1.1%)
Other real estate owned 6,380 14,707 12,949 (44.4%)
--------- --------- ---------
Total nonperforming assets 131,546 131,884 107,602 (6.3%)
========= ========= =========
Provision for loan losses 12,118 12,132 12,960 (60.1%)
Net charge offs 8,335 10,083 5,110 (0.6%)
Allowance for loan losses /
loans 1.71% 1.66% 1.66%
Allowance for loan losses /
nonperforming loans 140.79 147.16 180.02
Nonperforming loans / total
loans 1.22 1.13 0.92
Nonperforming assets / total
assets 0.87 0.87 0.71
Net charge offs / average
loans (annualized) 0.31 0.38 0.20
Year-to-date net charge offs /
average loans 0.29 0.29 0.20
----------------------------------------------------------------------
1Q04
Period End Loan vs
Composition 4Q03
Mar 31, 2004Dec 31, 2003 % Change
------------ ------------ ---------
Commercial, financial
& agricultural $2,123,846 $2,116,463 0.3%
Real estate -
construction 1,094,597 1,077,731 1.6%
Commercial real estate 3,368,660 3,246,954 3.7%
Lease financing 45,998 38,968 18.0%
------------ ------------
Commercial 6,633,101 6,480,116 2.4%
Residential mortgage 2,166,035 2,145,227 1.0%
Home equity 1,007,572 968,744 4.0%
------------ ------------
Residential real
estate 3,173,607 3,113,971 1.9%
Consumer 679,902 697,723 (2.6%)
------------ ------------
Total loans $10,486,610 $10,291,810 1.9%
============ ============
1Q04
vs
Sept 30, June 30, Mar 31, 2003 1Q03
2003 2003 % Change
------------ ------------ ------------ ---------
Commercial, financial
& agricultural $2,186,214 $2,312,143 $2,238,657 (5.1%)
Real estate -
construction 1,035,674 975,415 912,510 20.0%
Commercial real
estate 3,240,757 3,255,918 3,188,907 5.6%
Lease financing 37,193 38,666 38,712 18.8%
------------ ------------ ------------
Commercial 6,499,838 6,582,142 6,378,786 4.0%
Residential mortgage 2,166,187 2,202,690 2,325,032 (6.8%)
Home equity 912,142 895,952 858,928 17.3%
------------ ------------ ------------
Residential real
estate 3,078,329 3,098,642 3,183,960 (0.3%)
Consumer 711,075 706,580 712,723 (4.6%)
------------ ------------ ------------
Total loans $10,289,242 $10,387,364 $10,275,469 2.1%
============ ============ ============
----------------------------------------------------------------------
1Q04
Period End Deposit vs
Composition 4Q03
Mar 31, 2004Dec 31, 2003 % Change
------------- ------------ ---------
Demand $1,755,485 $1,814,446 (3.2%)
Savings 918,608 890,092 3.2%
Interest-bearing
demand 2,375,492 2,330,478 1.9%
Money market 1,542,875 1,573,678 (2.0%)
Brokered CDs 230,983 165,130 39.9%
Other time deposits 2,879,315 3,019,019 (4.6%)
------------- ------------
Total deposits $9,702,758 $9,792,843 (0.9%)
============= ============
Period End Deposit 1Q04
Composition vs
Sept 30, June 30, Mar 31, 1Q03
2003 2003 2003 % Change
----------- ------------- ------------ ---------
Demand $1,804,596 $1,833,703 $1,692,979 3.7%
Savings 924,036 942,027 935,740 (1.8%)
Interest-bearing
demand 2,086,964 1,797,065 1,540,757 54.2%
Money market 1,559,769 1,598,317 1,658,735 (7.0%)
Brokered CDs 156,994 163,857 208,670 10.7%
Other time deposits 3,102,997 3,118,491 3,023,353 (4.8%)
----------- ------------- ------------
Total deposits $9,635,356 $9,453,460 $9,060,234 7.1%
=========== ============= ============
----------------------------------------------------------------------
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp Three months ended March 31,
2004
------------------------------
Average Interest Average
(in thousands) Balance Income/ Yield/
Expense Rate
------------ --------- --------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 6,532,215 $ 79,787 4.83%
Residential real estate 3,210,793 43,860 5.47
Consumer 690,403 11,868 6.91
------------ ---------
Total loans 10,433,411 135,515 5.17
Investments and other 3,752,158 47,435 5.06
------------ ---------
Total earning assets 14,185,569 182,950 5.14
Other assets, net 1,075,708
------------
Total assets $15,261,277
============
Interest-bearing liabilities:
Savings deposits $ 898,526 $ 841 0.38%
Interest-bearing demand deposits 2,364,013 4,700 0.80
Money market deposits 1,577,010 3,163 0.81
Time deposits, excluding Brokered CDs 2,937,071 18,412 2.52
------------ ---------
Total interest-bearing deposits,
excluding Brokered CDs 7,776,620 27,116 1.40
Brokered CDs 144,345 438 1.22
------------ ---------
Total interest-bearing deposits 7,920,965 27,554 1.40
Wholesale funding 4,162,038 19,917 1.90
------------ ---------
Total interest-bearing liabilities 12,083,003 47,471 1.57
Noninterest-bearing demand 1,664,109
Other liabilities 135,361
Stockholders' equity 1,378,804
------------
Total liabilities and stockholders'
equity $15,261,277
============
---------
Net interest income and rate spread(1) $135,479 3.57%
=========
Net interest margin (1) 3.80%
Taxable equivalent adjustment $ 6,404
=========
Three months ended March 31,
2003
-------------------------------
Average Interest Average
(in thousands) Balance Income / Yield /
Expense Rate
------------ --------- --------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 6,326,737 $ 82,855 5.24%
Residential real estate 3,537,998 52,823 6.02
Consumer 713,695 13,062 7.42
------------ ---------
Total loans 10,578,430 148,740 5.65
Investments and other 3,257,672 42,920 5.27
------------ ---------
Total earning assets 13,836,102 191,660 5.56
Other assets, net 1,031,237
------------
Total assets $14,867,339
============
Interest-bearing liabilities:
Savings deposits $ 909,581 $ 1,453 0.65%
Interest-bearing demand deposits 1,486,311 3,113 0.85
Money market deposits 1,704,621 4,265 1.01
Time deposits, excluding Brokered CDs 3,012,579 22,065 2.97
------------ ---------
Total interest-bearing deposits,
excluding Brokered CDs 7,113,092 30,896 1.76
Brokered CDs 232,540 1,094 1.91
------------ ---------
Total interest-bearing deposits 7,345,632 31,990 1.77
Wholesale funding 4,541,010 25,939 2.28
------------ ---------
Total interest-bearing liabilities 11,886,642 57,929 1.96
Noninterest-bearing demand 1,555,809
Other liabilities 143,938
Stockholders' equity 1,280,950
------------
Total liabilities and stockholders'
equity $14,867,339
============
---------
Net interest income and rate spread(1) $133,731 3.60%
=========
Net interest margin (1) 3.87%
Taxable equivalent adjustment $6,277
=========
----------------------------------------------------------------------
(1) The yield on tax exempt loans and securities is computed on a
taxable equivalent basis using a tax rate of 35% for all periods
presented and is net of the effects of certain disallowed interest
deductions.
(2) Nonaccrual loans and loans held for sale have been included in the
average balances.
(3) Interest income includes net loan fees.
CONTACT: Associated Banc-Corp
Investors:
Joe Selner, 920-491-7120
or
Media:
Jon Drayna, 920-491-7006
SOURCE: Associated Banc-Corp