GREEN BAY, Wis.--(BUSINESS WIRE)--Nov. 4, 2005--Associated
Banc-Corp (NASDAQ:ASBC) repurchased 974,000 shares, or approximately
0.7 percent, of its outstanding common stock on Nov. 3, 2005, the
company announced today.
Associated conducted the share buy-back as part of an initiative
outlined in the company's third quarter earnings release whereby cash
flows from maturing investments are being used to reduce wholesale
funding and to repurchase shares.
"Our balanced approach to reducing wholesale borrowings is
designed to reduce volatility in our margin in a rising rate
environment," Associated Banc-Corp President and CEO Paul S. Beideman
said. "Coupled with the share buy-back, we expect to achieve our
objectives while preserving shareholder value," Beideman said.
The shares were purchased from UBS AGLondon Branch under an
accelerated share repurchase program at $30.79 per share for a total
cost of approximately $30 million. The accelerated share repurchase
program enabled Associated to purchase the shares immediately, while
UBS may purchase shares in the market over a period of up to three
months. The repurchased shares are subject to a future purchase price
adjustment expected to be settled following a period of up to three
months, such that Associated may receive, or be required to pay a
price adjustment based on an adjusted weighted average price as
defined in its agreement with UBS.
Associated's Board of Directors has authorized management to
repurchase shares of Associated's common stock for issuance in
connection with Associated's employee incentive plans and for other
corporate purposes. For Associated's employee incentive plans, the
Board of Directors authorized the repurchase of 750,000 shares in the
fourth quarter of 2005. Of that, no shares have been purchased.
Additionally, under two separate actions in 2000 and one action in
2003, the Board of Directors authorized the repurchase and
cancellation of Associated's common shares, not to exceed
approximately 16.5 million shares on a combined basis. Of that,
Associated has approximately 2.6 million shares remaining after the
accelerated share repurchase. Associated may repurchase these
remaining shares from time to time in the open market or through
negotiated or accelerated share repurchase transactions based on
market opportunities, capital levels, growth prospects, and other
investment opportunities. After the repurchase, Associated had
approximately 135 million common shares outstanding.
Associated Banc-Corp, headquartered in Green Bay, Wis., is a
diversified multibank holding company with total assets of $21
billion. Associated has 320 banking offices serving more than 180
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.
CONTACT: Associated Banc-Corp
Joe Selner (Investors), 920-491-7120
or
Cindy Moon-Mogush (Media), 920-431-8034
SOURCE: Associated Banc-Corp