Press Release Details

Associated Reports First Quarter Earnings of $0.24 per share

04/19/2012

GREEN BAY, Wis., April 19, 2012 /PRNewswire/ -- Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $41 million, or $0.24 per common share, for the quarter ended March 31, 2012. This compares to net income to common shareholders of $15 million, or $0.09 per common share, for the comparable quarter ended March 31, 2011.

"We are pleased with the solid results of this quarter and remain optimistic on the outlook for our business," said President and CEO Philip B. Flynn.  "We have announced an increase to the common dividend this quarter and we remain focused on growing the company consistent with our commitment to building shareholder value through our long-term strategy for growth at Associated."

HIGHLIGHTS   

  • Net income to common shareholders of $41 million improved by 4% from the prior quarter
    • Earnings increased $26 million year-over year
    • Quarterly net income to common shareholders is at the highest level since early 2008
  • Return on tier 1 common equity for the quarter was 9.23%, compared to 3.76% a year ago
  • Quarterly dividend increased to $0.05 per common share, up from $0.01 per common share
  • Loan balances increased by a net $223 million, or 2%, during the first quarter to $14.3 billion, and have increased $1.6 billion, or 13%, from a year ago
  • Demand deposit balances increased by $60 million, or 2%, from the prior quarter, and have increased $704 million, or 21%, from a year ago
  • Net interest income of $155 million improved by 2% from the prior quarter
  • Credit metrics continued to improve:
    • Nonperforming assets declined $37 million, or 9%, from the prior quarter, and are down $176 million, or 33%, from a year ago
    • Potential problem loans declined 15% from the prior quarter, and are down 47% from a year ago

FIRST QUARTER 2012 FINANCIAL RESULTS

Loans

At March 31, 2012, the Company's loan portfolio was $14.3 billion, up $223 million, or 2%, from $14.0 billion at December 31, 2011, and up $1.6 billion, or 13%, from $12.7 billion a year ago.  The retail and residential mortgage portfolio grew by a net $155 million from the fourth quarter of 2011, driven by strong mortgage refinancing activity.  Commercial real estate lending grew by a net $82 million on a linked-quarter basis with growth in the investor commercial real estate portfolio of $100 million partially offset by run-off in the construction portfolio of $18 million. Commercial and business lending declined by a net $15 million from the prior quarter as middle market commercial lending growth of $27 million was offset by run-off in other portfolios, including a $37 million decline in the mortgage warehouse lending portfolio.

Deposits

Total deposits of $15.7 billion at the end of the first quarter were up $563 million, or 4%, from $15.1 billion at the end of the fourth quarter.  The net deposit growth during the quarter was a result of a $1.0 billion, or 20%, increase in money market deposits and a decline in brokered CD balances of $156 million coupled with a decline in other time deposits of $224 million.  Demand deposit balances also increased by $60 million, or 2%, during the quarter, and are up $704 million, or 21%, from the year ago quarter.

Net Interest Income and Net Interest Margin

First quarter net interest income increased by $3 million, or 2%, from the prior quarter to $155 million.  The net interest margin for the first quarter was 3.31%, an increase of 10 basis points from the prior quarter.  Yields on earning assets increased by 4 basis points from the prior quarter, and the cost of interest-bearing liabilities declined by 8 basis points, contributing to the quarterly increase in overall net interest margin.

Noninterest Income and Expense

Noninterest income for the quarter was $82 million, up $8 million, or 10%, from the fourth quarter.  The improvement was primarily driven by an increase in mortgage banking income which benefited from a $5 million increase in gain on sale from secondary mortgage production as well as $3 million from lower valuation expense on mortgage servicing rights.

Total noninterest expense for the quarter ended March 31, 2012 was $173 million, down $2 million, or 1%, from the fourth quarter.  Personnel and occupancy expenses increased by $6 million and legal and professional fees increased by $5 million from the prior quarter, primarily due to the cost of addressing regulatory items.  Offsetting the increased personnel, occupancy, and legal expenses were lower losses other than loans, reduced business development and advertising expense, and lower foreclosure and OREO expense and FDIC expense.

Credit Metrics

The Company reported another quarter of improving credit metrics with nonperforming assets down 9% to $362 million from $398 million at December 31, 2011, and down 33% from $537 million at March 31, 2011. 

Net charge offs were $22 million for the first quarter, down 59% from $53 million for the first quarter of 2011.  The Company's allowance for loan losses was $356 million, representing an allowance equal to 2.50% of loans, and covered over 108% of nonaccrual loans at March 31, 2012.

Capital Ratios

The Company's capital position remains very strong, with a Tier 1 common equity ratio of 12.49% at March 31, 2012.  The Company's capital ratios continue to be in excess of "well-capitalized" regulatory benchmarks, and also exceed the proposed Basel III guidelines.

FIRST 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, April 19, 2012.  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 877-317-6789. 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 412-317-6789. Participants should ask the operator for the Associated Banc-Corp first 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 May 21, 2012, by dialing 877-344-7529 and entering the conference ID number 10011862. The replay number for international callers is 412-317-0088.

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 over 250 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," "outlook," 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:
Tim Sedabres, Vice President, Finance
920-491-7059

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

 


































Consolidated Balance Sheets (Unaudited)












Associated Banc-Corp
















March 31,


December 31,


Seql Qtr


September 30,


June 30,


March 31,


Comp Qtr


(in thousands)


2012


2011


$ Change


2011


2011


2011


$ Change


Assets
















Cash and due from banks


$     360,728


$    454,958


$(94,230)


$     410,644


$     314,682


$     299,040


$    61,688


Interest-bearing deposits in other
















 financial institutions


344,148


154,562


189,586


250,648


777,675


498,094


(153,946)


Federal funds sold and securities purchased under agreements to resell


 

7,100


7,075


25


4,180


2,400


2,015


5,085


Securities available for sale, at fair value


4,669,100


4,937,483


(268,383)


5,453,816


5,742,034


5,883,541


(1,214,441)


Federal Home Loan Bank and Federal 
















   Reserve Bank stocks, at cost


177,808


191,188


(13,380)


191,128


191,075


191,017


(13,209)


Loans held for sale


196,570


249,195


(52,625)


201,142


84,323


85,493


111,077


Loans


14,253,725


14,031,071


222,654


13,503,507


13,089,589


12,655,322


1,598,403


Allowance for loan losses


(356,298)


(378,151)


21,853


(399,723)


(425,961)


(454,461)


98,163


    Loans, net


13,897,427


13,652,920


244,507


13,103,784


12,663,628


12,200,861


1,696,566


Premises and equipment, net


225,164


223,736


1,428


208,301


192,506


186,329


38,835


Goodwill


929,168


929,168


-


929,168


929,168


929,168


-


Other intangible assets, net


68,374


67,574


800


67,970


74,872


85,200


(16,826)


Other assets


1,038,083


1,056,358


(18,275)


1,081,868


1,076,112


1,112,807


(74,724)


    Total assets


$21,913,670


$21,924,217


$(10,547)


$21,902,649


$22,048,475


$21,473,565


440,105


















Liabilities and Stockholders' Equity
















Noninterest-bearing deposits


$  3,989,156


$  3,928,792


$ 60,364


$  3,711,570


$  3,218,722


$  3,285,604


703,552


Interest-bearing deposits, excl Brokered CDs


11,617,727


10,958,915


658,812


10,867,013


10,530,658


10,413,994


1,203,733


Brokered CDs


46,493


202,948


(156,455)


203,827


316,670


324,045


(277,552)


    Total deposits


15,653,376


15,090,655


562,721


14,782,410


14,066,050


14,023,643


1,629,733


Short-term funding


1,936,219


2,514,485


(578,266)


2,531,776


3,255,670


2,547,805


(611,586)


Long-term funding


1,176,736


1,177,071


(335)


1,477,408


1,484,174


1,484,177


(307,441)


Accrued expenses and other liabilities


246,466


276,212


(29,746)


260,436


243,433


223,226


23,240


    Total liabilities


19,012,797


19,058,423


(45,626)


19,052,030


19,049,327


18,278,851


733,946


Stockholders' Equity
















  Preferred equity


63,272


63,272


-


63,272


258,051


515,238


(451,966)


  Common stock


1,750


1,746


4


1,746


1,745


1,744


6


  Surplus


1,590,336


1,586,401


3,935


1,585,208


1,581,594


1,576,903


13,433


  Retained earnings


1,181,247


1,148,773


32,474


1,111,080


1,079,076


1,055,344


125,903


  Accumulated other comprehensive income 


65,278


65,602


(324)


89,313


79,345


45,731


19,547


  Treasury stock


(1,010)


-


(1,010)


-


(663)


(246)


(764)


    Total stockholders' equity


2,900,873


2,865,794


35,079


2,850,619


2,999,148


3,194,714


(293,841)


    Total liabilities and stockholders' equity

$21,913,670


$21,924,217


$(10,547)


$21,902,649


$22,048,475


$21,473,565


$  440,105

















 

 




















Consolidated Statements of Income (Unaudited)








Associated Banc-Corp











For The Three Months Ended







March 31,


Quarter


(in thousands, except per share amounts)


2012


2011


$ Change

% Change


Interest Income









Interest and fees on loans


$       149,023


$     142,771


$      6,252

4.4%


Interest and dividends on investment securities:









  Taxable


23,029


34,652


(11,623)

(33.5%)


  Tax-exempt


7,274


7,713


(439)

(5.7%)


Other interest 


1,247


1,458


(211)

(14.5%)


    Total interest income


180,573


186,594


(6,021)

(3.2%)


Interest Expense









Interest on deposits 


12,036


18,249


(6,213)

(34.0%)


Interest on short-term funding


1,823


3,579


(1,756)

(49.1%)


Interest on long-term funding


12,046


11,043


1,003

9.1%


    Total interest expense


25,905


32,871


(6,966)

(21.2%)


Net Interest Income


154,668


153,723


945

0.6%


Provision for loan losses


-


31,000


(31,000)

(100.0%)


Net interest income after provision for 









 loan losses


154,668


122,723


31,945

26.0%


Noninterest Income









Trust service fees


9,787


9,831


(44)

(0.4%)


Service charges on deposit accounts


18,042


19,064


(1,022)

(5.4%)


Card-based and other nondeposit fees


10,879


15,598


(4,719)

(30.3%)


Retail commissions


15,717


16,381


(664)

(4.1%)


  Total core fee-based revenue


54,425


60,874


(6,449)

(10.6%)


Mortgage banking, net


17,654


1,845


15,809

N/M


Capital market fees, net


3,716


2,378


1,338

56.3%


Bank owned life insurance income


4,292


3,586


706

19.7%


Asset sale losses, net


(481)


(1,986)


1,505

(75.8%)


Investment securities gains (losses), net


40


(22)


62

(281.8%)


Other


1,913


5,507


(3,594)

(65.3%)


    Total noninterest income


81,559


72,182


9,377

13.0%


Noninterest Expense









Personnel expense


94,078


88,930


5,148

5.8%


Occupancy 


15,179


15,275


(96)

(0.6%)


Equipment 


5,468


4,767


701

14.7%


Data processing


9,516


7,534


1,982

26.3%


Business development and advertising


5,381


4,943


438

8.9%


Other intangible amortization


1,049


1,178


(129)

(11.0%)


Loan expense


2,910


2,956


(46)

(1.6%)


Legal and professional fees


9,715


4,482


5,233

116.8%


Losses other than loans


3,550


6,297


(2,747)

(43.6%)


Foreclosure / OREO expense


6,475


6,061


414

6.8%


FDIC expense


4,870


8,244


(3,374)

(40.9%)


Other


14,684


13,509


1,175

8.7%


    Total noninterest expense


172,875


164,176


8,699

5.3%


Income before income taxes


63,352


30,729


32,623

106.2%


Income tax expense 


20,719


7,876


12,843

163.1%


Net income 


42,633


22,853


19,780

86.6%


Preferred stock dividends and discount


1,300


7,413


(6,113)

(82.5%)


Net income available to common equity


$         41,333


$       15,440


$    25,893

167.7%











Earnings Per Common Share:









  Basic


$             0.24


$           0.09


$        0.15

166.7%


  Diluted


$             0.24


$           0.09


$        0.15

166.7%











Average Common Shares Outstanding:









  Basic


173,846


173,213


633

0.4%


  Diluted


173,848


173,217


631

0.4%











N/M = Not meaningful.

















 

 





















Consolidated Statements of Income (Unaudited) - Quarterly Trend












Associated Banc-Corp























Sequential Qtr








Comparable Qtr



(in thousands, except per share amounts)


1Q12


4Q11


$ Change

% Change


3Q11


2Q11


1Q11


$  Change

% Change



Interest Income



















Interest and fees on loans


$149,023


$149,832


$ (809)

(0.5%)


$145,778


$144,358


$142,771


$ 6,252

4.4%



Interest and dividends on investment securities:



















  Taxable


23,029


22,855


174

0.8%


30,513


35,351


34,652


(11,623)

(33.5%)



  Tax-exempt


7,274


7,344


(70)

(1.0%)


7,376


7,504


7,713


(439)

(5.7%)



Other interest


1,247


1,251


(4)

(0.3%)


1,428


1,438


1,458


(211)

(14.5%)



    Total interest income


180,573


181,282


(709)

(0.4%)


185,095


188,651


186,594


(6,021)

(3.2%)



Interest Expense



















Interest on deposits


12,036


14,954


(2,918)

(19.5%)


15,644


16,901


18,249


(6,213)

(34.0%)



Interest on short-term funding


1,823


2,156


(333)

(15.4%)


3,039


3,637


3,579


(1,756)

(49.1%)



Interest on long-term funding


12,046


12,347


(301)

(2.4%)


13,252


13,990


11,043


1,003

9.1%



    Total interest expense


25,905


29,457


(3,552)

(12.1%)


31,935


34,528


32,871


(6,966)

(21.2%)



Net Interest Income


154,668


151,825


2,843

1.9%


153,160


154,123


153,723


945

0.6%



Provision for loan losses


-


1,000


(1,000)

(100.0%)


4,000


16,000


31,000


(31,000)

(100.0%)



Net interest income after provision for



















loan losses


154,668


150,825


3,843

2.5%


149,160


138,123


122,723


31,945

26.0%



Noninterest Income



















Trust service fees


9,787


9,511


276

2.9%


9,791


10,012


9,831


(44)

(0.4%)



Service charges on deposit accounts


18,042


17,783


259

1.5%


19,949


19,112


19,064


(1,022)

(5.4%)



Card-based and other nondeposit fees


10,879


11,269


(390)

(3.5%)


15,291


15,747


15,598


(4,719)

(30.3%)



Retail commissions


15,717


14,881


836

5.6%


15,047


16,475


16,381


(664)

(4.1%)



  Total core fee-based revenue


54,425


53,444


981

1.8%


60,078


61,346


60,874


(6,449)

(10.6%)






















Mortgage banking, net


17,654


9,677


7,977

82.4%


4,521


(3,320)


1,845


15,809

N/M



Capital market fees, net


3,716


3,950


(234)

(5.9%)


3,273


(890)


2,378


1,338

56.3%



Bank owned life insurance income


4,292


3,820


472

12.4%


3,990


3,500


3,586


706

19.7%



Asset sale gains (losses), net


(481)


525


(1,006)

(191.6%)


(1,179)


(209)


(1,986)


1,505

(75.8%)



Investment securities gains (losses), net


40


(310)


350

(112.9%)


(744)


(36)


(22)


62

(281.8%)



Other


1,913


2,750


(837)

(30.4%)


1,737


4,364


5,507


(3,594)

(65.3%)



    Total noninterest income


81,559


73,856


7,703

10.4%


71,676


64,755


72,182


9,377

13.0%



Noninterest Expense



















Personnel expense


94,078


89,785


4,293

4.8%


90,377


89,203


88,930


5,148

5.8%



Occupancy


15,179


13,796


1,383

10.0%


14,205


12,663


15,275


(96)

(0.6%)



Equipment


5,468


5,286


182

3.4%


4,851


4,969


4,767


701

14.7%



Data processing


9,516


9,080


436

4.8%


7,887


7,974


7,534


1,982

26.3%



Business development and advertising


5,381


6,904


(1,523)

(22.1%)


5,539


5,652


4,943


438

8.9%



Other intangible amortization


1,049


1,179


(130)

(11.0%)


1,179


1,178


1,178


(129)

(11.0%)



Loan expense


2,910


3,469


(559)

(16.1%)


2,600


2,983


2,956


(46)

(1.6%)



Legal and professional fees


9,715


4,651


5,064

108.9%


4,289


4,783


4,482


5,233

116.8%



Losses other than loans


3,550


11,890


(8,340)

(70.1%)


1,659


(1,925)


6,297


(2,747)

(43.6%)



Foreclosure / OREO expense


6,475


7,493


(1,018)

(13.6%)


7,662


9,527


6,061


414

6.8%



FDIC expense


4,870


6,136


(1,266)

(20.6%)


6,906


7,198


8,244


(3,374)

(40.9%)



Other


14,684


14,982


(298)

(2.0%)


15,006


14,681


13,509


1,175

8.7%



  Total noninterest expense


172,875


174,651


(1,776)

(1.0%)


162,160


158,886


164,176


8,699

5.3%



Income before income taxes


63,352


50,030


13,322

26.6%


58,676


43,992


30,729


32,623

106.2%



Income tax expense


20,719


8,905


11,814

132.7%


17,337


9,610


7,876


12,843

163.1%



Net income


42,633


41,125


1,508

3.7%


41,339


34,382


22,853


19,780

86.6%



Preferred stock dividends and discount


1,300


1,300


-

0.0%


7,305


8,812


7,413


(6,113)

(82.5%)



Net income available to common equity


$ 41,333


$ 39,825


$1,508

3.8%


$ 34,034


$ 25,570


$ 15,440


$25,893

167.7%






















Earnings Per Common Share:



















  Basic


$ 0.24


$ 0.23


$ 0.01

4.3%


$ 0.20


$ 0.15


$ 0.09


$ 0.15

166.7%



  Diluted


$ 0.24


$ 0.23


$ 0.01

4.3%


$ 0.20


$ 0.15


$ 0.09


$ 0.15

166.7%






















Average Common Shares Outstanding:



















  Basic


173,846


173,523


323

0.2%


173,418


173,323


173,213


633

0.4%



  Diluted


173,848


173,523


325

0.2%


173,418


173,327


173,217


631

0.4%






















N/M = Not meaningful.





































 



















Selected Quarterly Information















Associated Banc-Corp















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

1st Qtr 2012


4th Qtr 2011


3rd Qtr 2011


2nd Qtr 2011


1st Qtr 2011







Summary of Operations















Net interest income


$ 154,668


$ 151,825


$ 153,160


$ 154,123


$ 153,723







Provision for loan losses


-


1,000


4,000


16,000


31,000







Asset sale gains (losses), net


(481)


525


(1,179)


(209)


(1,986)







Investment securities gains (losses), net


40


(310)


(744)


(36)


(22)







Noninterest income (excluding securities & asset gains)


82,000


73,641


73,599


65,000


74,190







Noninterest expense


172,875


174,651


162,160


158,886


164,176







Income before income taxes


63,352


50,030


58,676


43,992


30,729







Income tax expense


20,719


8,905


17,337


9,610


7,876







Net income


42,633


41,125


41,339


34,382


22,853







Net income available to common equity


41,333


39,825


34,034


25,570


15,440







Taxable equivalent adjustment


5,303


5,307


5,295


5,332


5,440
























Per Common Share Data















Net income:

















  Basic


$ 0.24


$ 0.23


$ 0.20


$ 0.15


$ 0.09







  Diluted


0.24


0.23


0.20


0.15


0.09







Dividends


0.05


0.01


0.01


0.01


0.01







Market Value:

















  High


$ 14.63


$ 11.78


$ 14.17


$ 15.02


$ 15.36







  Low


11.43


9.15


8.95


13.06


13.83







  Close


13.96


11.17


9.30


13.90


14.85







Book value


16.32


16.15


16.07


15.81


15.46







Tangible book value


10.87


10.68


10.59


10.33


9.97
























Performance Ratios (annualized)














Earning assets yield


3.85%


3.81%


3.88%


4.00%


4.01%







Interest-bearing liabilities rate


0.70


0.78


0.83


0.91


0.89







Net interest margin


3.31


3.21


3.23


3.29


3.32







Return on average assets


0.79


0.75


0.75


0.64


0.43







Return on average equity


5.93


5.71


5.49


4.63


2.92







Return on average Tier 1 common equity (1)


9.23


8.96


7.83


6.07


3.76







Efficiency ratio (2)


71.44


75.68


69.88


70.79


70.36







Effective tax rate


32.70


17.80


29.55


21.84


25.63







Dividend payout ratio (3)


20.83


4.35


5.00


6.67


11.11
























Average Balances















Assets


$21,659,139


$21,755,870


$21,729,187


$21,526,155


$21,336,858







Earning assets


19,371,729


19,506,627


19,530,007


19,431,292


19,297,866







Interest-bearing liabilities


14,920,413


15,095,689


15,215,517


15,261,514


14,907,465







Loans (4)


14,310,441


14,043,585


13,376,928


13,004,904


12,673,844







Deposits


15,000,567


14,893,469


14,405,311


14,052,689


14,245,614







Short and long-term funding


3,603,700


3,857,252


4,227,319


4,434,500


3,883,122







Common stockholders' equity


2,826,913


2,792,823


2,765,023


2,704,909


2,657,956







Stockholders' equity


2,890,185


2,856,095


2,987,178


2,976,840


3,172,636







Common stockholders' equity / assets


13.05%


12.84%


12.72%


12.57%


12.46%







Stockholders' equity / assets


13.34%


13.13%


13.75%


13.83%


14.87%
























At Period End
















Assets


$21,913,670


$21,924,217


$21,902,649


$22,048,475


$21,473,565







Loans


14,253,725


14,031,071


13,503,507


13,089,589


12,655,322







Allowance for loan losses


356,298


378,151


399,723


425,961


454,461







Goodwill


929,168


929,168


929,168


929,168


929,168







Mortgage servicing rights, net


50,001


48,152


47,370


53,093


62,243







Other intangible assets


18,373


19,422


20,600


21,779


22,957







Deposits


15,653,376


15,090,655


14,782,410


14,066,050


14,023,643







Short and long-term funding


3,112,955


3,691,556


4,009,184


4,739,844


4,031,982







Stockholders' equity


2,900,873


2,865,794


2,850,619


2,999,148


3,194,714







Stockholders' equity / assets


13.24%


13.07%


13.01%


13.60%


14.88%







Tangible common equity / tangible assets (5)


9.01%


8.84%


8.77%


8.49%


8.42%







Tangible equity / tangible assets (6)


9.32%


9.14%


9.07%


9.71%


10.93%







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


12.49%


12.24%


12.44%


12.61%


12.65%







Tier 1 leverage ratio


10.03%


9.81%


9.62%


10.46%


11.65%







Tier 1 risk-based capital ratio


14.33%


14.08%


14.35%


16.03%


18.08%







Total risk-based capital ratio


15.78%


15.53%


15.81%


17.50%


19.56%







Shares outstanding, end of period


173,923


173,575


173,474


173,374


173,274
























Selected trend information
















Average full time equivalent employees


5,045


5,056


4,980


4,977


4,929







Trust assets under management, at market value


$ 6,000,000


$ 5,600,000


$ 5,300,000


$ 5,700,000


$ 5,900,000







Mortgage loans originated for sale during period


563,688


843,614


470,530


250,880


290,013







Mortgage portfolio serviced for others


7,284,000


7,321,000


7,281,000


7,367,000


7,476,000







Mortgage servicing rights, net / Portfolio serviced for others


0.69%


0.66%


0.65%


0.72%


0.83%
























(1) Return on average Tier 1 common equity = Net income available to common equity divided by average Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities.



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
















Mar12 vs Dec11





Mar12 vs Mar11




(in thousands)


Mar 31, 2012

Dec 31, 2011

% Change


Sep 30, 2011

Jun 30, 2011

Mar 31, 2011

% Change




Allowance for Loan Losses













Beginning balance


$378,151

$399,723

(5.4%)


$425,961

$454,461

$476,813

(20.7%)




Provision for loan losses


-

1,000

(100.0%)


4,000

16,000

31,000

(100.0%)




Charge offs


(31,259)

(34,056)

(8.2%)


(38,155)

(52,365)

(65,156)

(52.0%)




Recoveries


9,406

11,484

(18.1%)


7,917

7,865

11,804

(20.3%)




Net charge offs


(21,853)

(22,572)

(3.2%)


(30,238)

(44,500)

(53,352)

(59.0%)




Ending balance


$356,298

$378,151

(5.8%)


$399,723

$425,961

$454,461

(21.6%)

















Reserve for losses on unfunded commitments


$ 15,600

$14,700

6.1%


$14,900

$14,900

$ 17,800

(12.4%)






























Net Charge Offs




Mar12 vs Dec11





Mar12 vs Mar11






Mar 31, 2012

Dec 31, 2011

% Change


Sep 30, 2011

Jun 30, 2011

Mar 31, 2011

% Change




Commercial and industrial


$3,872

$231

N/M


$3,741

$14,026

$ 4,314

(10.2%)




Commercial real estate - owner occupied


415

539

(23.0%)


134

4,436

1,867

(77.8%)




Lease financing


(1,836)

19

N/M


(1,889)

60

28

N/M




  Commercial and business lending


2,451

789

210.6%


1,986

18,522

6,209

(60.5%)




Commercial real estate - investor


7,354

2,394

207.2%


10,472

4,941

6,006

22.4%




Real estate - construction


230

7,088

(96.8%)


5,646

6,031

11,936

(98.1%)




  Commercial real estate lending


7,584

9,482

(20.0%)


16,118

10,972

17,942

(57.7%)




    Total commercial


10,035

10,271

(2.3%)


18,104

29,494

24,151

(58.4%)




Home equity


8,950

8,113

10.3%


8,736

8,251

14,322

(37.5%)




Installment(1)


101

452

(77.7%)


764

664

12,670

(99.2%)




    Total retail


9,051

8,565

5.7%


9,500

8,915

26,992

(66.5%)




    Residential mortgage


2,767

3,736

(25.9%)


2,634

6,091

2,209

25.3%




        Total net charge offs


$21,853

$ 22,572

(3.2%)


$30,238

$44,500

$ 53,352

(59.0%)

















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


Mar 31, 2012

Dec 31, 2011



Sep 30, 2011

Jun 30, 2011

Mar 31, 2011





Commercial and industrial


42

3



46

180

60





Commercial real estate - owner occupied


16

20



5

174

72





Lease financing


 N/M 

14



N/M

44

20





  Commercial and business lending


20

7



18

177