Press Release Details

Associated reports Second Quarter Earnings of $0.15 per share

07/21/2011

Net income to shareholders of $25.6 million, up 66% from the prior quarter

GREEN BAY, Wis., July 21, 2011 – Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $25.6 million, or $0.15 per common share, for the quarter ended June 30, 2011. This compared to net income to common shareholders of $15.4 million, or $0.09 per common share, for the quarter ended March 31, 2011, and a net loss to common shareholders of $10.2 million, or $0.06 per common share, for the quarter ended June 30, 2010.

“We are pleased with our performance this quarter as we continue to execute on our strategic priorities,” said President and CEO Philip B. Flynn.  “We are beginning to see results from the steps we are taking to drive loan growth and earnings expansion.”

HIGHLIGHTS  

  • Pre-tax income improved $13 million and net income to common shareholders improved $10 million from the prior quarter
  • Total loans of $13.1 billion were up 3% from the prior quarter, with growth in all major segments of the portfolio
    • C&I loans grew $230 million on a linked-quarter basis
    • Commercial real estate and construction loans were up $50 million from the prior quarter
    • Residential mortgages grew $156 million during the second quarter
  • Total deposits and customer funding of $16.1 billion was up $184 million, with solid growth in interest-bearing checking, savings, and sweep account balances during the quarter
  • Net interest margin for the second quarter was 3.29%
    • Impact of first quarter debt offering was partially offset by a 5 basis point improvement in interest-bearing deposit costs
  • Continued improvements in key credit metrics
    • Nonaccrual loans of $468 million declined to the lowest level in six quarters
    • Potential problem loans declined to $699 million, down 23% from $912 million for the first quarter
    • Provision for loan losses of $16 million was down significantly from the prior quarter
    • Net charge-offs of $45 million were down 17% from $53 million for the first quarter

SECOND QUARTER 2011 FINANCIAL RESULTS

Loans

At June 30, 2011, the Company’s loan portfolio was $13.1 billion, up $434 million, or 3%, from $12.7 billion at March 31, 2011, and up $488 million, or 4%, from $12.6 billion a year ago.  Commercial loans grew $277 million on a linked-quarter basis, with the most significant increase in the commercial and industrial (C&I) segment of the loan portfolio.  C&I loans grew by $230 million, or 8%, from the prior quarter.  Commercial real estate and construction loans grew by $50 million, or 1%, and the residential mortgage segment was up $156 million, or 6%, from the first quarter.  

Deposits and Customer Funding

Total deposits and customer funding of $16.1 billion at the end of the second quarter was up 1% from $16.0 billion at the end of the first quarter.  Total deposits were $14.1 billion at June 30, 2011, up slightly from $14.0 billion at March 31, 2011.  The net deposit growth was primarily driven by a $176 million, or 10%, increase in interest-bearing demand deposits and a $34 million, or 4%, increase in savings deposits during the quarter.  The Company continued to reduce noncustomer network and brokered transactions deposits which, in aggregate, declined by 10% from the prior quarter.

Net Interest Income and Net Interest Margin

Second quarter net interest income was $154 million, up modestly from the first quarter despite the low interest rate environment and the additional interest expense related to the $300 million debt offering issued in late March.  Proceeds from the debt offering partially funded the Company’s repurchase of $262.5 million of preferred shares issued under the TARP Capital Purchase Program (CPP). The net interest margin was 3.29%, down 3 basis points from the prior quarter, also reflecting the impact of the debt offering.

Noninterest Income and Expense

Noninterest income for the quarter ended June 30, 2011 was $65 million, down $7 million, or 10%, from $72 million for the first quarter of 2011. The linked-quarter decline in noninterest income was primarily driven by a $6 million reduction in the value of mortgage servicing rights, primarily due to a decline in mortgage rates during the quarter, and a $4 million valuation expense related to credit exposures on customer swaps.  

Core fee-based revenue of $61 million for the quarter was relatively flat compared to the first quarter of 2011. The challenging economic environment, regulatory changes, and changes in checking products and customer behavior continued to have an impact on fee-based revenue during the second quarter.

Total noninterest expense for the quarter ended June 30, 2011 was $159 million, down $5 million, or 3%, from the first quarter.  Personnel expense of $89 million for the second quarter remained relatively flat compared to the first quarter.  Foreclosure/OREO costs were up $3 million from the prior quarter, offset by decreases in other expense categories, including a $3 million seasonal decline in occupancy expense and lower expenses related to unfunded commitments and litigation reserves of $3 million and $5 million, respectively.

On April 6, 2011, the Company used a portion of the net proceeds from the March debt offering to repurchase half of the $525 million the Company received under the CPP. The Company recorded a noncash charge of $5 million during the quarter for the partial repurchase of CPP preferred shares, which represented the difference between the unamortized cost of the repurchased preferred stock and the repurchase price. The Company will incur another $4 million noncash charge when it repurchases the balance of the CPP preferred shares.

Key Credit Metrics

The Company reported another quarter of improving credit metrics with nonaccrual loans of $468 million, down 4% from $488 million at March 31, 2011, and down 52% from $976 million at June 30, 2010.  Total loans 30-89 days past due were $113 million, up $7 million, or 7%, from $106 million for the previous quarter, and down 24% from $149 million at June 30, 2010. Potential problem loans declined to $699 million, down 23% from $912 million for the first quarter, and down 45% from $1.3 billion a year ago.

Net charge-offs were $45 million for the second quarter, down 17% from $53 million for the first quarter of 2011, and down 58% from $105 million for the second quarter of 2010.  The Company’s allowance for loan losses was $426 million, down 6% from $454 million for the quarter ended March 31, 2011, and down 25% from $568 million at June 30, 2010.

For the second quarter, the provision for loan losses was $16 million, down significantly from $31 million for the first quarter of 2011, and $98 million for the second quarter of 2010.  The allowance for loan losses coverage to nonaccrual loans was 91% at June 30, 2011 compared to 93% at the end of the first quarter and 58% a year ago.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common ratio of 12.61% at June 30, 2011 compared to 12.65% at the end of the first quarter and 12.00% a year ago.  The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks, the highest regulatory capital level and also exceed the guidelines recently published by the Basel Committee and endorsed by U.S. regulatory agencies.

“Despite remaining cautious about the near term macro economic outlook, we believe that the investments we are making will produce a solid return for our shareholders,” Flynn continued.  “As previously mentioned, we expect to repurchase the remaining CPP preferred shares during the third or fourth quarter of this year.”  

SECOND QUARTER 2011 EARNINGS

RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 21, 2011.  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 877-348-9354. 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 253-237-1160. Participants should ask the operator for the Associated Banc-Corp second quarter 2011 earnings call, or conference ID number 75804403.

An audio archive of the webcast will be available on the company’s website for one month following the call.  A replay of the call will be available starting at 7:00 p.m. CT on July 21, 2011 through 11:00 p.m. CT on August 21, 2011 by dialing 800-642-1687 and entering the conference ID number 75804403. The replay number for international callers is 706-645-9291.  

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $22 billion and is one of the top 50 financial services holding companies operating in the United States.  Headquartered in Green Bay, Wis., Associated has approximately 270 banking locations serving more than 150 communities throughout Wisconsin, Illinois and Minnesota.  The company offers a full range of banking services and other financial products and services.  More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

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 most recent Annual Report filed on Form 10-K as updated by the Company’s most recent Form 10-Q.

Investor Contact:
Janet L. Ford, Investor Relations Director  

414-278-1890

Media Contact:
Autumn Latimore, Public Relations Director
414-278-1860


Consolidated Balance Sheets (Unaudited)
















Associated Banc-Corp


















June 30,


March 31,


Seql Qtr


December 31,


September 30,


June 30,


Comp Qtr


(in thousands)


2011


2011


$ Change


2010


2010


2010


$ Change


Assets
















Cash and due from banks


$      314,682


$      299,040


$   15,642


$      319,487


$       316,914


$      324,952


$    (10,270)


Interest-bearing deposits in other
















financial institutions


777,675


498,094


279,581


546,125


1,717,853


2,210,946


(1,433,271)


Federal funds sold and securities purchased
















under agreements to resell


2,400


2,015


385


2,550


503,950


13,515


(11,115)


Securities available for sale, at fair value


5,742,034


5,883,541


(141,507)


6,101,341


5,291,336


5,322,177


419,857


Federal Home Loan Bank and Federal
















  Reserve Bank stocks, at cost


191,075


191,017


58


190,968


190,918


190,870


205


Loans held for sale


84,323


85,493


(1,170)


144,808


274,666


321,060


(236,737)


Loans


13,089,589


12,655,322


434,267


12,616,735


12,372,393


12,601,916


487,673


Allowance for loan losses


(425,961)


(454,461)


28,500


(476,813)


(522,018)


(567,912)


141,951


   Loans, net


12,663,628


12,200,861


462,767


12,139,922


11,850,375


12,034,004


629,624


Premises and equipment, net


192,506


186,329


6,177


190,533


181,236


181,231


11,275


Goodwill


929,168


929,168


-


929,168


929,168


929,168


-


Other intangible assets, net


74,872


85,200


(10,328)


88,044


84,824


92,176


(17,304)


Other assets


1,076,112


1,112,807


(36,695)


1,132,650


1,184,046


1,139,960


(63,848)


   Total assets


$ 22,048,475


$ 21,473,565


$ 574,910


$ 21,785,596


$  22,525,286


$ 22,760,059


(711,584)


















Liabilities and Stockholders' Equity
















Noninterest-bearing deposits


$   3,218,722


$   3,285,604


$ (66,882)


$   3,684,965


$    3,054,121


$   2,932,599


286,123


Interest-bearing deposits, excl Brokered CDs


10,530,658


10,413,994


116,664


11,097,788


13,308,530


13,465,974


(2,935,316)


Brokered CDs


316,670


324,045


(7,375)


442,640


442,209


571,626


(254,956)


   Total deposits


14,066,050


14,023,643


42,407


15,225,393


16,804,860


16,970,199


(2,904,149)


Short-term funding


3,255,670


2,547,805


707,865


1,747,382


539,263


513,406


2,742,264


Long-term funding


1,484,174


1,484,177


(3)


1,413,605


1,713,671


1,843,691


(359,517)


Accrued expenses and other liabilities


243,433


223,226


20,207


240,425


266,643


246,636


(3,203)


   Total liabilities


19,049,327


18,278,851


770,476


18,626,805


19,324,437


19,573,932


(524,605)


Stockholders' Equity
















 Preferred equity


258,051


515,238


(257,187)


514,388


513,550


512,724


(254,673)


 Common stock


1,745


1,744


1


1,739


1,738


1,737


8


 Surplus


1,581,594


1,576,903


4,691


1,573,372


1,569,963


1,567,315


14,279


 Retained earnings


1,079,076


1,055,344


23,732


1,041,666


1,036,800


1,032,065


47,011


 Accumulated other comprehensive income


79,345


45,731


33,614


27,626


78,798


73,173


6,172


 Treasury stock


(663)


(246)


(417)


-


-


(887)


224


   Total stockholders' equity


2,999,148


3,194,714


(195,566)


3,158,791


3,200,849


3,186,127


(186,979)


   Total liabilities and stockholders' equity


$ 22,048,475


$ 21,473,565


$ 574,910


$ 21,785,596


$  22,525,286


$ 22,760,059


$  (711,584)




Consolidated Statements of Income (Unaudited)
















Associated Banc-Corp


















For The Three Months Ended





For The Six Months Ended,







June 30,


Quarter


June 30,


Year-to-Date


(in thousands, except per share amounts)


2011


2010


$ Change

% Change


2011


2010


$ Change

% Change


Interest Income
















Interest and fees on loans


$ 144,358


$ 153,815


$ (9,457)

(6.1%)


$ 287,129


$ 313,106


$ (25,977)

(8.3%)


Interest and dividends on investment securities:
















 Taxable


35,351


40,292


(4,941)

(12.3%)


70,003


86,460


(16,457)

(19.0%)


 Tax-exempt


7,504


8,558


(1,054)

(12.3%)


15,217


17,266


(2,049)

(11.9%)


Other interest and dividends


1,438


2,213


(775)

(35.0%)


2,896


3,986


(1,090)

(27.3%)


   Total interest income


188,651


204,878


(16,227)

(7.9%)


375,245


420,818


(45,573)

(10.8%)


Interest Expense
















Interest on deposits


16,901


28,360


(11,459)

(40.4%)


35,150


57,105


(21,955)

(38.4%)


Interest on short-term funding


3,637


1,820


1,817

99.8%


7,216


3,846


3,370

87.6%


Interest on long-term funding


13,990


14,905


(915)

(6.1%)


25,033


30,852


(5,819)

(18.9%)


   Total interest expense


34,528


45,085


(10,557)

(23.4%)


67,399


91,803


(24,404)

(26.6%)


Net Interest Income


154,123


159,793


(5,670)

(3.5%)


307,846


329,015


(21,169)

(6.4%)


Provision for loan losses


16,000


97,665


(81,665)

(83.6%)


47,000


263,010


(216,010)

(82.1%)


Net interest income after provision for
















loan losses


138,123


62,128


75,995

122.3%


260,846


66,005


194,841

295.2%


Noninterest Income
















Trust service fees


10,012


9,517


495

5.2%


19,843


18,873


970

5.1%


Service charges on deposit accounts


19,112


26,446


(7,334)

(27.7%)


38,176


52,505


(14,329)

(27.3%)


Card-based and other nondeposit fees


15,747


14,739


1,008

6.8%


31,345


28,551


2,794

9.8%


Retail commissions


16,475


15,722


753

4.8%


32,856


31,539


1,317

4.2%


 Total core fee-based revenue


61,346


66,424


(5,078)

(7.6%)


122,220


131,468


(9,248)

(7.0%)








-










Mortgage banking, net


(3,320)


5,493


(8,813)

(160.4%)


(1,475)


10,900


(12,375)

(113.5%)


Capital market fees, net


(890)


(136)


(754)

N/M


1,488


(6)


1,494

N/M


Bank owned life insurance income


3,500


4,240


(740)

(17.5%)


7,086


7,496


(410)

(5.5%)


Asset sale gains (losses), net


(209)


1,477


(1,686)

N/M


(2,195)


(164)


(2,031)

N/M


Investment securities gains (losses), net


(36)


(146)


110

(75.3%)


(58)


23,435


(23,493)

(100.2%)


Other


4,364


3,539


825

23.3%


9,871


5,800


4,071

70.2%


   Total noninterest income


64,755


80,891


(16,136)

(19.9%)


136,937


178,929


(41,992)

(23.5%)


Noninterest Expense
















Personnel expense


89,203


79,342


9,861

12.4%


178,133


158,697


19,436

12.2%


Occupancy


12,663


11,706


957

8.2%


27,938


24,881


3,057

12.3%


Equipment


4,969


4,450


519

11.7%


9,736


8,835


901

10.2%


Data processing


7,974


7,866


108

1.4%


15,508


15,165


343

2.3%


Business development and advertising


5,652


4,773


879

18.4%


10,595


9,218


1,377

14.9%


Other intangible amortization


1,178


1,254


(76)

(6.1%)


2,356


2,507


(151)

(6.0%)


Legal and professional fees


4,783


5,517


(734)

(13.3%)


9,265


8,312


953

11.5%


Losses other than loans


(1,925)


2,840


(4,765)

(167.8%)


4,372


4,819


(447)

(9.3%)


Foreclosure/OREO expense


9,527


8,906


621

7.0%


15,588


16,635


(1,047)

(6.3%)


FDIC expense


7,198


12,027


(4,829)

(40.2%)


15,442


23,856


(8,414)

(35.3%)


Other


17,664


16,357


1,307

8.0%


34,129


33,972


157

0.5%


   Total noninterest expense


158,886


155,038


3,848

2.5%


323,062


306,897


16,165

5.3%


Income (loss) before income taxes


43,992


(12,019)


56,011

N/M


74,721


(61,963)


136,684

N/M


Income tax expense (benefit)


9,610


(9,240)


18,850

N/M


17,486


(32,795)


50,281

N/M


Net income (loss)


34,382


(2,779)


37,161

N/M


57,235


(29,168)


$  86,403

N/M


Preferred stock dividends and discount


8,812


7,377


1,435

19.5%


16,225


14,742


1,483

10.1%


Net income (loss) available to common equity


$   25,570


$ (10,156)


$ 35,726

N/M


$   41,010


$ (43,910)


$  84,920

N/M


















Earnings (Loss) Per Common Share:
















 Basic


$       0.15


$     (0.06)


$     0.21

N/M


$       0.24


$     (0.26)


$      0.50

N/M


 Diluted


$       0.15


$     (0.06)


$     0.21

N/M


$       0.24


$     (0.26)


$      0.50

N/M


















Average Common Shares Outstanding:
















 Basic


173,323


172,921


402

0.2%


173,268


169,401


3,867

2.3%


 Diluted


173,327


172,921


406

0.2%


173,272


169,401


3,871

2.3%


















N/M = Not meaningful.


















Consolidated Statements of Income (Unaudited) - Quarterly Trend


















Associated Banc-Corp























Sequential Qtr


Comparable Qtr


(in thousands, except per share amounts)


2Q11


1Q11


$ Change

% Change


4Q10


3Q10


2Q10


$ Change

% Change


Interest Income


















Interest and fees on loans


$ 144,358


$ 142,771


$   1,587

1.1%


$ 146,444


$ 148,937


$ 153,815


$ (9,457)

(6.1%)


Interest and dividends on investment securities:


















 Taxable


35,351


34,652


699

2.0%


32,420


36,151


40,292


(4,941)

(12.3%)


 Tax-exempt


7,504


7,713


(209)

(2.7%)


8,150


8,499


8,558


(1,054)

(12.3%)


Other interest and dividends


1,438


1,458


(20)

(1.4%)


2,078


2,629


2,213


(775)

(35.0%)


   Total interest income


188,651


186,594


2,057

1.1%


189,092


196,216


204,878


(16,227)

(7.9%)


Interest Expense


















Interest on deposits


16,901


18,249


(1,348)

(7.4%)


23,039


25,879


28,360


(11,459)

(40.4%)


Interest on short-term funding


3,637


3,579


58

1.6%


2,288


1,849


1,820


1,817

99.8%


Interest on long-term funding


13,990


11,043


2,947

26.7%


12,905


14,584


14,905


(915)

(6.1%)


   Total interest expense


34,528


32,871


1,657

5.0%


38,232


42,312


45,085


(10,557)

(23.4%)


Net Interest Income


154,123


153,723


400

0.3%


150,860


153,904


159,793


(5,670)

(3.5%)


Provision for loan losses


16,000


31,000


(15,000)

(48.4%)


63,000


64,000


97,665


(81,665)

(83.6%)


Net interest income after provision for


















loan losses


138,123


122,723


15,400

12.5%


87,860


89,904


62,128


75,995

122.3%


Noninterest Income


















Trust service fees


10,012


9,831


181

1.8%


9,518


9,462


9,517


495

5.2%


Service charges on deposit accounts


19,112


19,064


48

0.3%


20,390


23,845


26,446


(7,334)

(27.7%)


Card-based and other nondeposit fees


15,747


15,598


149

1.0%


15,842


14,906


14,739


1,008

6.8%


Retail commissions


16,475


16,381


94

0.6%


14,441


15,276


15,722


753

4.8%


 Total core fee-based revenue


61,346


60,874


472

0.8%


60,191


63,489


66,424


(5,078)

(7.6%)




















Mortgage banking, net


(3,320)


1,845


(5,165)

N/M


13,229


9,007


5,493


(8,813)

(160.4%)


Capital market fees, net


(890)


2,378


(3,268)

(137.4%)


5,187


891


(136)


(754)

N/M


Bank owned life insurance income


3,500


3,586


(86)

(2.4%)


4,509


3,756


4,240


(740)

(17.5%)


Asset sale gains (losses), net


(209)


(1,986)


1,777

(89.5%)


514


(2,354)


1,477


(1,686)

N/M


Investment securities gains (losses), net


(36)


(22)


(14)

63.6%


(1,883)


3,365


(146)


110

(75.3%)


Other


4,364


5,507


(1,143)

(20.8%)


2,950


3,743


3,539


825

23.3%


   Total noninterest income


64,755


72,182


(7,427)

(10.3%)


84,697


81,897


80,891


(16,136)

(19.9%)


Noninterest Expense


















Personnel expense


89,203


88,930


273

0.3%


83,912


80,640


79,342


9,861

12.4%


Occupancy


12,663


15,275


(2,612)

(17.1%)


12,899


12,157


11,706


957

8.2%


Equipment


4,969


4,767


202

4.2%


4,899


4,637


4,450


519

11.7%


Data processing


7,974


7,534


440

5.8%


7,047


7,502


7,866


108

1.4%


Business development and advertising


5,652


4,943


709

14.3%


4,870


4,297


4,773


879

18.4%


Other intangible amortization


1,178


1,178


-

0.0%


1,206


1,206


1,254


(76)

(6.1%)


Legal and professional fees


4,783


4,482


301

6.7%


5,353


6,774


5,517


(734)

(13.3%)


Losses other than loans


(1,925)


6,297


(8,222)

(130.6%)


7,470


2,504


2,840


(4,765)

(167.8%)


Foreclosure/OREO expense


9,527


6,061


3,466

57.2%


9,860


7,349


8,906


621

7.0%


FDIC expense


7,198


8,244


(1,046)

(12.7%)


11,095


11,426


12,027


(4,829)

(40.2%)


Other


17,664


16,465


1,199

7.3%


18,232


18,088


16,357


1,307

8.0%


   Total noninterest expense


158,886


164,176


(5,290)

(3.2%)


166,843


156,580


155,038


3,848

2.5%


Income (loss) before income taxes


43,992


30,729


13,263

43.2%


5,714


15,221


(12,019)


56,011

N/M


Income tax expense (benefit)


9,610


7,876


1,734

22.0%


(8,294)


917


(9,240)


18,850

N/M


Net income (loss)


34,382


22,853


11,529

50.4%


14,008


14,304


(2,779)


37,161

N/M


Preferred stock dividends and discount


8,812


7,413


1,399

18.9%


7,400


7,389


7,377


1,435

19.5%


Net income (loss) available to common equity


$   25,570


$   15,440


$ 10,130

65.6%


$     6,608


$     6,915


$ (10,156)


$ 35,726

N/M




















Earnings (Loss) Per Common Share:


















 Basic


$       0.15


$       0.09


$     0.06

66.7%


$       0.04


$       0.04


$     (0.06)


$     0.21

N/M


 Diluted


$       0.15


$       0.09


$     0.06

66.7%


$       0.04


$       0.04


$     (0.06)


$     0.21

N/M




















Average Common Shares Outstanding:


















 Basic


173,323


173,213


110

0.1%


173,068


172,989


172,921


402

0.2%


 Diluted


173,327


173,217


110

0.1%


173,072


172,990


172,921


406

0.2%




















N/M = Not meaningful.




















Selected Quarterly Information















Associated Banc-Corp






























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

YTD 2011


YTD 2010


2nd Qtr 2011


1st Qtr 2011


4th Qtr 2010


3rd Qtr 2010


2nd Qtr 2010


Summary of Operations















Net interest income

$      307,846


$      329,015


$      154,123


$      153,723


$      150,860


$      153,904


$      159,793


Provision for loan losses

47,000


263,010


16,000


31,000


63,000


64,000


97,665


Asset sale gains (losses), net

(2,195)


(164)


(209)


(1,986)


514


(2,354)


1,477


Investment securities gains (losses), net

(58)


23,435


(36)


(22)


(1,883)


3,365


(146)


Noninterest income (excluding securities & asset gains)

139,190


155,658


65,000


74,190


86,066


80,886


79,560


Noninterest expense

323,062


306,897


158,886


164,176


166,843


156,580


155,038


Income (loss) before income taxes

74,721


(61,963)


43,992


30,729


5,714


15,221


(12,019)


Income tax expense (benefit)

17,486


(32,795)


9,610


7,876


(8,294)


917


(9,240)


Net income (loss)

57,235


(29,168)


34,382


22,853


14,008


14,304


(2,779)


Net income (loss) available to common equity

41,010


(43,910)


25,570


15,440


6,608


6,915


(10,156)


Taxable equivalent adjustment

10,772


12,000


5,332


5,440


5,721


5,914


5,966

















Per Common Share Data















Net income (loss):















 Basic

$            0.24


$          (0.26)


$            0.15


$            0.09


$            0.04


$            0.04


$          (0.06)


 Diluted

0.24


(0.26)


0.15


0.09


0.04


0.04


(0.06)


Dividends

0.02


0.02


0.01


0.01


0.01


0.01


0.01


Market Value:















 High

$          15.36


$          16.10


$          15.02


$          15.36


$          15.49


$          13.90


$          16.10


 Low

13.06


11.48


13.06


13.83


12.57


11.96


12.26


 Close

13.90


12.26


13.90


14.85


15.15


13.19


12.26


Book value

15.81


15.46


15.81


15.46


15.28


15.53


15.46


Tangible book value

10.33


9.93


10.33


9.97


9.77


10.02


9.93

















Performance Ratios (annualized)















Earning assets yield

4.00%


4.17%


4.00%


4.01%


3.89%


3.90%


4.10%


Interest-bearing liabilities rate

0.90


1.11


0.91


0.89


0.98


1.03


1.10


Net interest margin

3.30


3.29


3.29


3.32


3.13


3.08


3.22


Return on average assets

0.54


(0.26)


0.64


0.43


0.25


0.25


(0.05)


Return on average equity

3.75


(1.86)


4.63


2.92


1.74


1.77


(0.35)


Return on average tangible common equity (1)

4.78


(5.22)


5.85


3.67


1.52


1.58


(2.37)


Efficiency ratio (2)

70.57


61.79


70.79


70.36


68.76


65.05


63.20


Effective tax rate (benefit)

23.40


(52.93)


21.84


25.63


(145.13)


6.03


(76.88)


Dividend payout ratio (3)

8.33


N/M


6.67


11.11


25.00


25.02


N/M

















Average Balances















Assets

$ 21,432,029


$ 22,873,703


$ 21,526,155


$ 21,336,858


$ 22,034,041


$ 22,727,208


$ 22,598,695


Earning assets

19,364,948


20,835,705


19,431,292


19,297,866


19,950,784


20,660,498


20,598,637


Interest-bearing liabilities

15,085,468


16,688,248


15,261,514


14,907,465


15,476,002


16,376,904


16,408,718


Loans (4)

12,840,289


13,659,385


13,004,904


12,673,844


12,587,702


12,855,791


13,396,710


Deposits

14,148,618


17,099,816


14,052,689


14,245,614


16,452,473


17,138,105


17,056,193


Short and long-term funding

4,160,335


2,588,696


4,434,500


3,883,122


2,311,016


2,326,469


2,343,119


Common stockholders' equity

2,681,562


2,654,000


2,704,909


2,657,956


2,681,813


2,693,735


2,674,097


Stockholders' equity

3,074,197


3,165,798


2,976,840


3,172,636


3,195,657


3,206,742


3,186,295


Common stockholders' equity / assets

12.51%


11.60%


12.57%


12.46%


12.17%


11.85%


11.83%


Stockholders' equity / assets

14.34%


13.84%


13.83%


14.87%


14.50%


14.11%


14.10%

















At Period End















Assets





$ 22,048,475


$ 21,473,565


$ 21,785,596


$ 22,525,286


$ 22,760,059


Loans





13,089,589


12,655,322


12,616,735


12,372,393


12,601,916


Allowance for loan losses





425,961


454,461


476,813


522,018


567,912


Goodwill





929,168


929,168


929,168


929,168


929,168


Mortgage servicing rights, net





53,093


62,243


63,909


59,483


65,629


Other intangible assets





21,779


22,957


24,135


25,341


26,547


Deposits





14,066,050


14,023,643


15,225,393


16,804,860


16,970,199


Short and long-term funding





4,739,844


4,031,982


3,160,987


2,252,934


2,357,097


Stockholders' equity





2,999,148


3,194,714


3,158,791


3,200,849


3,186,127


Stockholders' equity / assets





13.60%


14.88%


14.50%


14.21%


14.00%


Tangible common equity / tangible assets (5)





8.49%


8.42%


8.12%


8.03%


7.88%


Tangible equity/tangible assets (6)





9.71%


10.93%


10.59%


10.41%


10.23%


Tier 1 common equity / risk-weighted assets (7)





12.61%


12.65%


12.26%


12.31%


12.00%


Tier 1 leverage ratio





10.46%


11.65%


11.19%


10.78%


10.80%


Tier 1 risk-based capital ratio





16.03%


18.08%


17.58%


17.68%


17.25%


Total risk-based capital ratio





17.50%


19.56%


19.05%


19.16%


19.02%


Shares outstanding, end of period





173,374


173,274


173,112


173,019


172,955

















Selected trend information















Average full time equivalent employees





4,977


4,929


4,865


4,827


4,766


Trust assets under management, at market value





$   5,700,000


$   5,900,000


$   5,700,000


$   5,400,000


$   5,100,000


Mortgage loans originated for sale during period





250,880


290,013


629,978


727,868


501,965


Mortgage portfolio serviced for others





7,367,000


7,476,000


7,453,000


7,860,000


7,822,000


Mortgage servicing rights, net / Portfolio serviced for others





0.72%


0.83%


0.86%


0.76%


0.84%

















N/M = Not meaningful.














 (1) Return on average tangible common equity = Net income available to common equity divided by average common equity excluding average goodwill and other intangible assets. 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 sales 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) 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.  

 (6) 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.  

 (7) Tier 1 common equity to risk-weighted assets = Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities divided by risk-weighted assets.  This is a non-GAAP financial measure.  




Selected Asset Quality Information











Associated Banc-Corp











Jun11 vs Mar11





Jun11 vs Jun10


(in thousands)


Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sep 30, 2010

Jun 30, 2010

% Change


Allowance for Loan Losses











Beginning balance


$     454,461

$     476,813

(4.7%)


$     522,018

$     567,912

$     575,573

(21.0%)


Provision for loan losses


16,000

31,000

(48.4%)


63,000

64,000

97,665

(83.6%)


Charge offs


(52,365)

(65,156)

(19.6%)


(118,368)

(122,327)

(113,170)

(53.7%)


Recoveries


7,865

11,804

(33.4%)


10,163

12,433

7,844

0.3%


Net charge offs


(44,500)

(53,352)

(16.6%)


(108,205)

(109,894)

(105,326)

(57.8%)


Ending balance


$     425,961

$     454,461

(6.3%)


$     476,813

$     522,018

$     567,912

(25.0%)













Reserve for losses on unfunded commitments


$       14,900

$       17,800

(16.3%)


$       17,374

$       16,274

$       14,616

1.9%
























Net Charge Offs




Jun11 vs Mar11





Jun11 vs Jun10




Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sep 30, 2010

Jun 30, 2010

% Change


Commercial and industrial


$       14,026

$         4,314

225.1%


$       27,041

$         4,274

$         5,557

152.4%


Commercial real estate


9,377

7,873

19.1%


20,103

28,517

37,004

(74.7%)


Real estate - construction


6,031

11,936

(49.5%)


31,879

60,488

46,135

(86.9%)


Lease financing


60

28

114.3%


9,159

826

297

(79.8%)


   Total commercial


29,494

24,151

22.1%


88,182

94,105

88,993

(66.9%)


Home equity


8,251

14,322

(42.4%)


14,541

10,875

11,213

(26.4%)


Installment(1)


664

12,670

(94.8%)


2,369

1,640

1,887

(64.8%)


   Total retail


8,915

26,992

(67.0%)


16,910

12,515

13,100

(31.9%)


   Residential mortgage


6,091

2,209

175.7%


3,113

3,274

3,233

88.4%


       Total net charge offs


$       44,500

$       53,352

(16.6%)


$     108,205

$     109,894

$     105,326

(57.8%)













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


Jun 30, 2011

Mar 31, 2011



Dec 31, 2010

Sep 30, 2010

Jun 30, 2010



Commercial and industrial


180

60



364

57

73



Commercial real estate


111

94



231

319

398



Real estate - construction


454

888



1,820

2,598

1,582



Lease financing


44

20



5,051

416

141



   Total commercial


166

142



488

498

444



Home equity


127

227



231

175

183



Installment


42

759



131

74

83



   Total retail


111

338



209

148

156



   Residential mortgage


92

35



56

65

65



       Total net charge offs


137

171



341

339

315

























Credit Quality




Jun11 vs Mar11





Jun11 vs Jun10




Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sep 30, 2010

Jun 30, 2010

% Change


Nonaccrual loans


$     467,611

$     488,321

(4.2%)


$     574,356

$     727,877

$     975,641

(52.1%)


Other real estate owned (OREO)


45,712

49,019

(6.7%)


44,330

53,101

51,223

(10.8%)


   Total nonperforming assets


$     513,323

$     537,340

(4.5%)


$     618,686

$     780,978

$  1,026,864

(50.0%)













Loans 90 or more days past due and still accruing


12,123

9,380

29.2%


3,418

26,593

3,207

278.0%


Restructured loans (accruing)


100,343

88,193

13.8%


79,935

62,778

40,865

145.5%













Allowance for loan losses / loans


3.25%

3.59%



3.78%

4.22%

4.51%



Allowance for loan losses / nonaccrual loans


91.09

93.07



83.02

71.72

58.21



Nonaccrual loans / total loans


3.57

3.86



4.55

5.88

7.74



Nonperforming assets / total loans plus OREO


3.91

4.23



4.89

6.29

8.12



Nonperforming assets / total assets


2.33

2.50



2.84

3.47

4.51



Net charge offs / average loans (annualized)


1.37

1.71



3.41

3.39

3.15



Year-to-date net charge offs / average loans


1.54

1.71



3.69

3.78

3.97














Nonaccrual loans by type:











Commercial and industrial


$       71,183

$       76,780

(7.3%)


$       99,845

$     156,697

$     184,173

(61.3%)


Commercial real estate


193,495

186,547

3.7%


223,927

275,586

351,883

(45.0%)


Real estate - construction


72,782

84,903

(14.3%)


94,929

132,425

279,710

(74.0%)


Lease financing


12,898

15,270

(15.5%)


17,080

26,922

27,953

(53.9%)


   Total commercial


350,358

363,500

(3.6%)


435,781

591,630

843,719

(58.5%)


Home equity


46,777

49,618

(5.7%)


51,712

50,901

41,749

12.0%


Installment


3,724

4,949

(24.8%)


10,544

8,757

6,032

(38.3%)


   Total retail


50,501

54,567

(7.5%)


62,256

59,658

47,781

5.7%


   Residential mortgage


66,752

70,254

(5.0%)


76,319

76,589

84,141

(20.7%)


       Total nonaccrual loans


$     467,611

$     488,321

(4.2%)


$     574,356

$     727,877

$     975,641

(52.1%)













 * Annualized.  

 (1) Charge offs for the three months ended March 31, 2011, include $10 million of write-downs related to installment loans transferred to held for sale.  




Selected Asset Quality Information (continued)











Associated Banc-Corp











Jun11 vs Mar11





Jun11 vs Jun10


(in thousands)


Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sep 30, 2010

Jun 30, 2010

% Change


Restructured loans (accruing)











Commercial and industrial


$       22,760

$       16,047

41.8%


$         9,980

$            620

$            635

N/M


Commercial real estate


36,191

34,166

5.9%


15,612

23,387

7,820

N/M


Real estate - construction


10,706

7,859

36.2%


22,532

7,076

4,835

N/M


Lease financing


-

-

0.0%


-

-

-

N/M


   Total commercial


69,657

58,072

19.9%


48,124

31,083

13,290

N/M


Home equity


11,453

11,630

(1.5%)


11,741

10,269

3,601

218.1%


Installment


1,017

1,149

(11.5%)


692

793

560

81.6%


   Total retail


12,470

12,779

(2.4%)


12,433

11,062

4,161

199.7%


   Residential mortgage


18,216

17,342

5.0%


19,378

20,633

23,414

(22.2%)


       Total restructured loans (accruing)


$     100,343

$       88,193

13.8%


$       79,935

$       62,778

$       40,865

145.5%













Restructured loans in nonaccrual loans (not included above)


$       71,084

$       49,352

44.0%


$       35,939

$       32,657

$       48,215

47.4%
























Loans Past Due 30-89 Days




Jun11 vs Mar11





Jun11 vs Jun10




Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sep 30, 2010

Jun 30, 2010

% Change


Commercial and industrial


$         7,581

$       36,205

(79.1%)


$       33,013

$       14,505

$       40,415

(81.2%)


Commercial real estate


61,240

40,537

51.1%


46,486

56,710

50,721

20.7%


Real estate - construction


13,217

3,410

287.6%


8,016

12,225

23,368

(43.4%)


Lease financing


79

135

(41.5%)


132

168

628

(87.4%)


   Total commercial


82,117

80,287

2.3%


87,647

83,608

115,132

(28.7%)


Home equity


14,818

14,808

0.1%


13,886

20,044

15,869

(6.6%)


Installment


3,851

2,714

41.9%


9,624

10,536

6,567

(41.4%)


   Total retail


18,669

17,522

6.5%


23,510

30,580

22,436

(16.8%)


   Residential mortgage


12,573

7,940

58.4%


8,722

10,065

11,110

13.2%


       Total loans past due 30-89 days


$     113,359

$     105,749

7.2%


$     119,879

$     124,253

$     148,678

(23.8%)
























Potential Problem Loans




Jun11 vs Mar11





Jun11 vs Jun10




Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sep 30, 2010

Jun 30, 2010

% Change


Commercial and industrial


$     229,407

$     348,949

(34.3%)


$     354,284

$     373,955

$     482,686

(52.5%)


Commercial real estate


382,056

465,376

(17.9%)


492,778

553,126

553,316

(31.0%)


Real estate - construction


63,186

70,824

(10.8%)


91,618

175,817

203,560

(69.0%)


Lease financing


1,399

1,705

(17.9%)


2,617

2,302

6,784

(79.4%)


   Total commercial


676,048

886,854

(23.8%)


941,297

1,105,200

1,246,346

(45.8%)


Home equity


4,515

4,737

(4.7%)


3,057

6,495

7,778

(42.0%)


Installment


216

230

(6.1%)


703

692

725

(70.2%)


   Total retail


4,731

4,967

(4.8%)


3,760

7,187

8,503

(44.4%)


   Residential mortgage


18,575

19,710

(5.8%)


18,672

19,416

17,304

7.3%


       Total potential problem loans


$     699,354

$     911,531

(23.3%)


$     963,729

$  1,131,803

$  1,272,153

(45.0%)
























N/M - Not meaningful.













Net Interest Income Analysis - Taxable Equivalent Basis










Associated Banc-Corp


Six months ended June 30, 2011


Six months ended June 30, 2010




Average

Interest

Average


Average

Interest

Average


(in thousands)


Balance

Income / Expense

Yield / Rate


Balance

Income / Expense

Yield / Rate












Earning assets:










  Loans: (1) (2) (3)










     Commercial


$   7,012,007

$              153,566

4.41%


$   8,256,254

$              175,869

4.29%


     Residential mortgage


2,592,749

55,179

4.26


2,008,087

50,251

5.02


     Retail


3,235,533

80,025

4.97


3,395,044

88,626

5.25


        Total loans


12,840,289

288,770

4.52


13,659,385

314,746

4.64


     Investment securities


5,773,545

94,351

3.27


5,449,542

114,087

4.19


     Other short-term investments


751,114

2,896

0.77


1,726,778

3,985

0.46


  Investments and other


6,524,659

97,247

2.98


7,176,320

118,072

3.29


Total earning assets


19,364,948

386,017

4.00


20,835,705

432,818

4.17


  Other assets, net


2,067,081




2,037,998




Total assets


$ 21,432,029




$ 22,873,703














Interest-bearing liabilities:










  Savings deposits


$      958,629

$                     571

0.12%


$      886,045

$                     541

0.12%


  Interest-bearing demand deposits


1,788,112

1,369

0.15


2,876,779

3,676

0.26


  Money market deposits


5,093,854

8,894

0.35


6,321,344

16,999

0.54


  Time deposits, excluding Brokered CDs


2,735,182

22,284

1.64


3,378,329

33,489

2.00


     Total interest-bearing deposits, excluding Brokered CDs


10,575,777

33,118

0.63


13,462,497

54,705

0.82


  Brokered CDs


349,356

2,032

1.17


637,055

2,400

0.76


     Total interest-bearing deposits


10,925,133

35,150

0.65


14,099,552

57,105

0.82


  Short and long-term funding


4,160,335

32,249

1.56


2,588,696

34,698

2.69


Total interest-bearing liabilities


15,085,468

67,399

0.90


16,688,248

91,803

1.11


  Noninterest-bearing demand deposits


3,223,485




3,000,264




  Other liabilities


48,879




19,393




  Stockholders' equity


3,074,197




3,165,798




Total liabilities and stockholders' equity


$ 21,432,029




$ 22,873,703














Net interest income and rate spread (1)



$              318,618

3.10%



$              341,015

3.06%


Net interest margin (1)




3.30%




3.29%


Taxable equivalent adjustment



$                10,772




$                12,000













Net Interest Income Analysis - Taxable Equivalent Basis










Associated Banc-Corp


Three months ended June 30, 2011


Three months ended June 30, 2010




Average

Interest

Average


Average

Interest

Average


(in thousands)


Balance

Income / Expense

Yield / Rate


Balance

Income / Expense

Yield / Rate












Earning assets:










  Loans: (1) (2) (3)










     Commercial


$   7,114,930

$                77,122

4.35%


$   8,036,688

$                85,974

4.29%


     Residential mortgage


2,657,740

28,032

4.22


1,996,448

24,781

4.97


     Retail


3,232,234

40,033

4.96


3,363,574

43,892

5.23


        Total loans


13,004,904

145,187

4.47


13,396,710

154,647

4.63


     Investment securities


5,689,728

47,359

3.33


5,176,340

53,984

4.17


     Other short-term investments


736,660

1,437

0.78


2,025,587

2,213

0.44


  Investments and other


6,426,388

48,796

3.04


7,201,927

56,197

3.12


Total earning assets


19,431,292

193,983

4.00


20,598,637

210,844

4.10


  Other assets, net


2,094,863




2,000,058




Total assets


$ 21,526,155




$ 22,598,695














Interest-bearing liabilities:










  Savings deposits


$      999,748

$                     308

0.12%


$      913,347

$                     291

0.13%


  Interest-bearing demand deposits


1,811,525

738

0.16


2,833,530

1,898

0.27


  Money market deposits


5,039,056

4,206

0.33


6,398,892

8,778

0.55


  Time deposits, excluding Brokered CDs


2,655,944

10,667

1.61


3,305,825

16,035

1.95


     Total interest-bearing deposits, excluding Brokered CDs


10,506,273

15,919

0.61


13,451,594

27,002

0.81


  Brokered CDs


320,741

982

1.23


614,005

1,358

0.89


     Total interest-bearing deposits


10,827,014

16,901

0.63


14,065,599

28,360

0.81


  Short and long-term funding


4,434,500

17,627

1.59


2,343,119

16,725

2.86


Total interest-bearing liabilities


15,261,514

34,528

0.91


16,408,718

45,085

1.10


  Noninterest-bearing demand deposits


3,225,675




2,990,594




  Other liabilities


62,126




13,088




  Stockholders' equity


2,976,840




3,186,295




Total liabilities and stockholders' equity


$ 21,526,155




$ 22,598,695














Net interest income and rate spread (1)



$              159,455

3.09%



$              165,759

3.00%


Net interest margin (1)




3.29%




3.22%


Taxable equivalent adjustment



$                  5,332




$                  5,966




 (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.  




Net Interest Income Analysis - Taxable Equivalent Basis










Associated Banc-Corp


Three months ended June 30, 2011


Three months ended March 31, 2011




Average

Interest

Average


Average

Interest

Average


(in thousands)


Balance

Income / Expense

Yield / Rate


Balance

Income / Expense

Yield / Rate












Earning assets:










  Loans: (1) (2) (3)










     Commercial


$   7,114,930

$                77,122

4.35%


$   6,907,941

$                76,444

4.48%


     Residential mortgage


2,657,740

28,032

4.22


2,527,035

27,147

4.31


     Retail


3,232,234

40,033

4.96


3,238,868

39,992

4.98


        Total loans


13,004,904

145,187

4.47


12,673,844

143,583

4.58


     Investment securities


5,689,728

47,359

3.33


5,858,293

46,993

3.21


     Other short-term investments


736,660

1,437

0.78


765,729

1,458

0.76


        Investments and other


6,426,388

48,796

3.04


6,624,022

48,451

2.93


Total earning assets


19,431,292

193,983

4.00


19,297,866

192,034

4.01


  Other assets, net


2,094,863




2,038,992




Total assets


$ 21,526,155




$ 21,336,858














Interest-bearing liabilities:










  Savings deposits


$      999,748

$                     308

0.12%


$      917,053

$                     264

0.12%


  Interest-bearing demand deposits


1,811,525

738

0.16


1,764,439

631

0.15


  Money market deposits


5,039,056

4,206

0.33


5,149,261

4,688

0.37


  Time deposits, excluding Brokered CDs


2,655,944

10,667

1.61


2,815,301

11,616

1.67


     Total interest-bearing deposits, excluding Brokered CDs


10,506,273

15,919

0.61


10,646,054

17,199

0.66


  Brokered CDs


320,741

982

1.23


378,289

1,050

1.13


     Total interest-bearing deposits


10,827,014

16,901

0.63


11,024,343

18,249

0.67


  Short and long-term funding


4,434,500

17,627

1.59


3,883,122

14,622

1.52


Total interest-bearing liabilities


15,261,514

34,528

0.91


14,907,465

32,871

0.89


  Noninterest-bearing demand deposits


3,225,675




3,221,271




  Other liabilities


62,126




35,486




  Stockholders' equity


2,976,840




3,172,636




Total liabilities and stockholders' equity


$ 21,526,155




$ 21,336,858














Net interest income and rate spread (1)



$              159,455

3.09%



$              159,163

3.12%


Net interest margin (1)




3.29%




3.32%


Taxable equivalent adjustment



$                  5,332




$                  5,440



 (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.  




Financial Summary and Comparison











Associated Banc-Corp






















Period End Loan Composition




Jun11 vs Mar11





Jun11 vs Jun10




Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sept 30, 2010

Jun 30, 2010

% Change


Commercial and industrial


$   3,202,301

$           2,972,651

7.7%


$   3,049,752

$           2,989,238

$   2,969,662

7.8%


Commercial real estate - owner occupied


1,030,060

1,027,826

0.2%


1,049,798

1,086,258

1,131,687

(9.0%)


Commercial real estate - all other


2,393,626

2,354,655

1.7%


2,339,415

2,408,084

2,445,029

(2.1%)


Real estate - construction


533,804

525,236

1.6%


553,069

736,387

925,697

(42.3%)


Lease financing


54,001

56,458

(4.4%)


60,254

74,690

82,375

(34.4%)


   Total commercial


7,213,792

6,936,826

4.0%


7,052,288

7,294,657

7,554,450

(4.5%)


Home equity


2,594,029

2,576,736

0.7%


2,523,057

2,457,461

2,455,181

5.7%


Installment


589,714

605,767

(2.7%)


695,383

721,480

749,588

(21.3%)


   Total retail


3,183,743

3,182,503

0.0%


3,218,440

3,178,941

3,204,769

(0.7%)


   Residential mortgage


2,692,054

2,535,993

6.2%


2,346,007

1,898,795

1,842,697

46.1%


       Total loans


$ 13,089,589

$         12,655,322

3.4%


$ 12,616,735

$         12,372,393

$ 12,601,916

3.9%
























Period End Deposit and Customer Funding Composition




Jun11 vs Mar11





Jun11 vs Jun10




Jun 30, 2011

Mar 31, 2011

% Change


Dec 31, 2010

Sept 30, 2010

Jun 30, 2010

% Change


Demand


$   3,218,722

$           3,285,604

(2.0%)


$   3,684,965

$           3,054,121

$   2,932,599

9.8%


Savings


1,007,337

973,122

3.5%


887,236

902,077

913,146

10.3%


Interest-bearing demand


1,931,519

1,755,367

10.0%


1,870,664

2,921,700

2,745,541

(29.6%)


Money market


4,982,492

4,968,510

0.3%


5,434,867

6,312,912

6,554,559

(24.0%)


Brokered CDs


316,670

324,045

(2.3%)


442,640

442,209

571,626

(44.6%)


Other time deposits


2,609,310

2,716,995

(4.0%)


2,905,021

3,171,841

3,252,728

(19.8%)


 Total deposits


14,066,050

14,023,643

0.3%


15,225,393

16,804,860

16,970,199

(17.1%)


Customer repo sweeps


930,101

1,048,516

(11.3%)


563,884

209,866

184,043

N/M


Customer repo term


1,147,938

887,434

29.4%


-

-

-

N/M


 Total customer funding


2,078,039

1,935,950

7.3%


563,884

209,866

184,043

N/M


   Total deposits and customer funding


$ 16,144,089

$         15,959,593

1.2%


$ 15,789,277

$         17,014,726

$ 17,154,242

(5.9%)













Network transaction deposits included above in











 interest-bearing demand and money market


824,003

936,688

(12.0%)


1,144,134

1,970,050

$   2,698,204

(69.5%)
























N/M = Not meaningful.












SOURCE Associated Banc-Corp