Press Release Details 5.23

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Associated 1st Quarter Earnings Per Diluted Share up 10 Percent

04/17/2003

GREEN BAY, Wis.--(BUSINESS WIRE)--April 17, 2003--Associated Banc-Corp (NASDAQ:ASBC) earned $.77 per diluted share in the quarter that ended March 31, 2003, a 10 percent increase from $.70 per diluted share for the same period in 2002.

Return on average assets was 1.58 percent in the first quarter compared to 1.54 percent in the first quarter of 2002. Return on average equity was 18.36 percent compared to 18.46 percent in the year earlier quarter.

Net interest income increased to $127 million in the first quarter, up 8.5 percent from $117 million in the year-earlier period. The company's net interest margin was 3.87 percent, down from 3.91 percent a year ago but unchanged from the previous quarter.

Total loans at the end of the first quarter 2003 were $10.3 billion, an increase of 5.3 percent compared to one year earlier. The growth occurred primarily in commercial loans, up $456 million, or 7.7 percent, and home equity loans, up $163 million, or 23.5 percent, while residential mortgage loans decreased $94 million, or 3.9 percent between the comparable first quarters. Since year-end 2002, commercial loans increased $87 million, or 5.6 percent annualized, and residential mortgage loans were down $106 million. The trend in residential mortgage loans reflects customers' continued preference for fixed rate loans in this low rate environment. Associated sells the majority of its fixed rate mortgage loans into the secondary market but continues to service these loans.

Transaction deposit accounts (demand, savings, interest-bearing demand and money market accounts) were $5.8 billion, up 8.0 percent over first quarter of last year. Time deposits were $3.3 billion at March 31, 2002, compared to $3.8 billion last year, impacted by the lower interest rate environment and scheduled maturities. Total deposits were relatively unchanged at $9.1 billion for the first quarter of 2003 compared to $9.2 billion a year ago and $9.1 billion at year-end 2002.

The provision for loan losses was $13.0 million for first quarter 2003, compared to $14.6 million for the fourth quarter last year, and $11.3 million for the comparable quarter in 2002. The ratio of the allowance for loan losses was 1.66 percent of total loans at March 31, 2003, compared to 1.58 percent and 1.48 percent at Dec. 31 and March 31, 2002, respectively.

Associated's credit quality showed modest improvement in the first quarter compared to Dec 31, 2002. Net chargeoffs for the first quarter of 2003 of $5.1 million, or 0.20 percent of average loans (annualized), were lower than net charge-offs of $7.4 million and $7.1 million in the fourth quarter of 2002 and the year-earlier quarter, respectively. Nonperforming loans were $94.7 million as of March 31, 2003, down from $99.3 million as of Dec. 31, 2002, but up from $71.7 million a year ago. Other real estate owned, which reflects property acquired by the bank due to default, was $12.9 million at March 31, 2003, bringing total nonperforming assets to 0.71 percent of total assets. The company expects asset quality to show improvement as the economy improves. However, many of the company's commercial customers continue to be challenged in the current economic environment.

Noninterest income grew to $65.2 million for the first quarter, compared to $47.4 million in the same period in 2002. Noninterest income in first quarter 2002 includes only one month's contribution from Signal Financial Corp., acquired on February 28, 2002. The continued strong activity in the mortgage and mortgage refinancing market generated $1.1 billion of mortgages for sale into the secondary market, up from $0.7 billion in the first quarter of 2002. Mortgage banking revenue of $26.1 million in the first quarter of 2003 was more than double that of the year-earlier period. Trust service fee income and retail commissions, together, declined $2.1 million as a result of continued weak stock market performance and investor uncertainty. Income in other areas posted strong gains. Service fee income from deposit accounts increased 19.5 percent year-over-year to $11.8 million, while credit card and other nondeposit fees increased 21.8 percent to $7.4 million.

Noninterest income for the first quarter of 2003 benefited from a credit card merchant processing sale and services agreement signed in March, 2003. The agreement resulted in $3.4 million of income in the first quarter of 2003, and calls for revenue sharing on new and existing merchant business over the life of the agreement.

As part of its continuing effort to provide a more complete range of financial services to its customers, Associated acquired CFG Insurance Services, Inc., one of the largest insurance agencies in the Twin Cities of Minnesota, on April 1, 2003. CFG has more than 2,500 business insurance clients in the Twin Cities, and complements Associated's existing insurance agency, Associated Insurance Management Group, Inc. When combined, the agency is expected to rank among the top 60 insurance agencies in the United States. The acquisition of CFG will further leverage Associated's banking opportunities in Minnesota, and eventually throughout Associated's markets, and will help diversify Associated's revenue stream.

Noninterest expenses remain a focus and were well controlled in the first quarter of 2003. Expenses in first quarter 2002 include only one month from Signal compared to a full quarter in 2003.

Noninterest expense grew by approximately $15.7 million, or 19.1 percent, compared to the first quarter of 2002, with more than half of the increase coming from higher mortgage servicing rights expense. While the strong mortgage refinance activity benefited mortgage banking income in the first quarter, it increased the prepayment speeds of Associated's mortgage portfolio serviced for others, a key factor behind the valuation of mortgage servicing rights. Mortgage servicing rights expense increased by $8.7 million between the comparable quarters, which includes a $7.3 million addition to the valuation allowance. The mortgage servicing asset at March 31, 2003, represents 0.54 percent of the total $5.4 billion residential mortgage portfolio serviced for others.

During the first quarter of 2003, Associated repurchased 716,500 shares of common stock, with approximately 1.4 million shares remaining under existing board repurchase authorizations.

"We are pleased that the ongoing execution of our strategies continues to produce strong results. Priorities for 2003 are to sustain our customer focus and leverage our operating structure to provide continuing value to our shareholders," Associated Banc-Corp Chairman, President and CEO Robert C. Gallagher said.

"Although our first quarter results are encouraging, our 2003 goal of 10 percent earnings per share growth is predicated on an improving economy, economic stimulus from Washington, moderate interest rate increases, and increased confidence among consumers and businesses. While we continue to look forward to these developments, expected improvements in the economy may take some time to materialize. We remain cautiously optimistic about our financial performance in 2003," Gallagher said.

Yesterday, Associated announced that its Board of Directors named Paul S. Beideman president and chief executive officer of the corporation, replacing Gallagher, 64, who is stepping down as president and CEO. Gallagher will remain chairman of the Board.

Beideman, 53, comes to Associated from Philadelphia, where he most recently served as chairman of Mellon Financial Corp.'s Mid-Atlantic Region. He has 32 years of banking experience, the last 13 in senior executive positions with Mellon. He was a member of Mellon's Senior Management Committee, and his background includes extensive experience in consumer and commercial banking. In addition, he has a wide range of experience in marketing, systems and operations, product development, and wealth management.

Associated will hold its Annual Shareholders' Meeting at 11 a.m. CDT on April 23rd, at the Meyer Theatre in Green Bay. The event will be webcast live. To view the webcast, see the information at www.associatedbank.com/AboutAssociated/InvestorRelations/.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $15.1 billion. Associated has more than 200 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 which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding descriptions of 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.

                            Tables follow.

----------------------------------------------------------------------

Consolidated Balance Sheets (Unaudited)
 Associated Banc-CorpMarch 31,   December 31,   %    March 31,    %
(in thousands)        2003         2002      Change   2002     Change
----------------------------------------------------------------------
Assets
Cash and due from
 banks              $401,012$430,691  (6.9%)    $326,946   22.7%
Interest-bearing
 deposits in other
 financial
 institutions         13,640        5,502  147.9%       6,028  126.3%
Federal funds sold
 and securities
 purchased
 under agreements
 to resell            27,815        8,820  215.4%      76,140 (63.5%)
Securities
 available for
 sale, at fair
 value             3,379,000    3,362,669    0.5%   3,364,411    0.4%
Loans held for
 sale                374,053      305,836   22.3%     149,945  149.5%
Loans             10,275,469   10,303,225  (0.3%)   9,757,584    5.3%
Allowance for loan
 losses             (170,391)    (162,541)   4.8%    (144,350)  18.0%
                 ------------ ------------        ------------
Loans, net        10,105,078   10,140,684  (0.4%)   9,613,234    5.1%
Premises and
 equipment           132,234      132,713  (0.4%)     135,821  (2.6%)
Goodwill             212,112      212,112    0.0%     212,112    0.0%
Other intangible
 assets               38,251       41,565  (8.0%)      47,667 (19.8%)
Other assets         405,971      402,683    0.8%     395,847    2.6%
                 ------------ ------------        ------------
Total assets     $15,089,166$15,043,275    0.3% $14,328,151    5.3%
                 ============ ============        ============

Liabilities and Stockholders' Equity

Noninterest-
 bearing deposits $1,692,979$1,773,699  (4.6%)  $1,437,798   17.7%
Interest-bearing
 deposits,
 excluding Brokered
 CDs               7,158,605    7,117,503    0.6%   7,439,710  (3.8%)
Brokered CDs         208,650      233,650 (10.7%)     315,184 (33.8%)
                   ------------ ------------        ------------
  Total deposits   9,060,234    9,124,852  (0.7%)   9,192,692  (1.4%)
Short-term
 borrowings        2,422,631    2,389,607    1.4%   2,230,505    8.6%
Long-term debt     1,954,715    1,906,845    2.5%   1,477,855   32.3%
Company-obligated
 mandatorily
 redeemable
  preferred
   securities        188,263      190,111  (1.0%)      11,000    N/M
Accrued expenses
 and other
 liabilities         177,457      159,677   11.1%     185,117  (4.1%)
                 ------------ ------------        ------------
Total
 liabilities      13,803,300   13,771,092    0.2%  13,097,169    5.4%

Stockholders' Equity

 Preferred stock           -            -                   -
 Common stock            748          755  (0.9%)         698    7.2%
 Surplus             621,616      643,956  (3.5%)     421,570   47.5%
 Retained
  earnings           637,781      607,944    4.9%     786,246 (18.9%)
 Accumulated other
  comprehensive
  income              56,302       60,313  (6.7%)      48,966   15.0%
 Treasury stock,
  at cost            (30,581)     (40,785)(25.0%)     (26,498)  15.4%
                 ------------ ------------        ------------
Total stockholders'
 equity            1,285,866    1,272,183    1.1%   1,230,982    4.5%
                 ------------ ------------        ------------
Total liabilities
 and stockholders'
 equity          $15,089,166$15,043,275    0.3% $14,328,151    5.3%
                 ============ ============        ============

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)     2003      2002 % Change
---------------------------------------------------------------------
Interest Income
Interest and fees on loans               $148,496$151,349    (1.9%)
Interest and dividends on investment securities
 and deposits with other financial
  institutions
  Taxable                                  26,797    32,859   (18.4%)
  Tax-exempt                               10,055     9,980      0.8%
Interest on federal funds sold and
 securities
 purchased under agreements to resell          35       118   (70.3%)
                                         --------- ---------
    Total interest income                 185,383   194,306    (4.6%)
Interest Expense
Interest on deposits                       31,990    48,229   (33.7%)
Interest on short-term borrowings           8,567    13,655   (37.3%)
Interest on long-term debt and capital
 securities                                17,372    14,995     15.9%
                                         --------- ---------
    Total interest expense                 57,929    76,879   (24.6%)
                                         --------- ---------
Net Interest Income                       127,454   117,427      8.5%
Provision for loan losses                  12,960    11,251     15.2%
                                         --------- ---------
Net interest income after provision for
 loan losses                              114,494   106,176      7.8%
Noninterest Income
Trust service fees                          6,630     7,371   (10.1%)
Service charges on deposit accounts        11,811     9,880     19.5%
Mortgage banking                           26,103    12,604    107.1%
Credit card and other nondeposit fees       7,396     6,072     21.8%
Retail commissions                          3,303     4,616   (28.4%)
Bank owned life insurance income            3,391     3,270      3.7%
Asset sale gains, net                         122       331   (63.1%)
Investment securities gains (losses),
 net                                         (326)        -      N/M
Other                                       6,779     3,256    108.2%
                                         --------- ---------
    Total noninterest income               65,209    47,400     37.6%
Noninterest Expense
Personnel expense                          50,235    44,994     11.6%
Occupancy                                   7,115     6,137     15.9%
Equipment                                   3,244     3,490    (7.0%)
Data processing                             5,618     4,803     17.0%
Business development and advertising        3,363     3,446    (2.4%)
Stationery and supplies                     1,679     2,044   (17.9%)
FDIC expense                                  366       372    (1.6%)
Mortgage servicing rights expense          11,598     2,897    300.3%
Other intangible amortization                 350       464   (24.6%)
Loan expense                                3,348     2,779     20.5%
Other                                      11,241    10,990      2.3%
                                         --------- ---------
    Total noninterest expense              98,157    82,416     19.1%
                                         --------- ---------
Income before income taxes                 81,546    71,160     14.6%
Income tax expense                         23,553    19,698     19.6%
                                         --------- ---------
Net Income                                $57,993$51,462     12.7%
                                         ========= =========

Earnings Per Share:
  Basic                                     $0.78$0.70     11.4%
  Diluted                                   $0.77$0.70     10.0%
Average Shares Outstanding:
  Basic                                    74,252    73,142      1.5%
  Diluted                                  74,974    74,042      1.3%


N/M - Not meaningful.


----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp

----------------------------------------------------------------------
(in thousands, except per share    1st Qtr      4th Qtr      3rd Qtr
 data)                               2003         2002         2002
----------------------------------------------------------------------
Summary of Operations
Interest income                    $185,383$196,178$199,765
Interest expense                     57,929       66,465       71,407
Net interest income                 127,454      129,713      128,358
Provision for loan losses            12,960       14,614       12,831
Net interest income after
 provision for loan losses          114,494      115,099      115,527
Asset sale gains (losses), net          122         (373)         658
Investment securities gains
 (losses), net                         (326)        (801)         374
Noninterest income (excluding
 securities & asset gains)           65,413       65,523       57,624
Noninterest expense                  98,157      102,763       98,183
Income taxes                         23,553       23,244       22,528
Net income                           57,993       53,441       53,472
Taxable equivalent adjustment         6,277        5,981        5,991

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                               $0.78$0.72$0.71
  Diluted                              0.77         0.71         0.70
Dividends                              0.31         0.31         0.31

Market Value:
  High                               $35.22$34.21$36.96
  Low                                 32.33        27.20        30.64
  Close                               32.33        33.94        31.73
Book value                            17.41        17.13        17.03

----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE)              3.87%        3.87%        3.96%
Return on average assets               1.58         1.42         1.47
Return on average equity              18.36        16.62        16.73
Return on tangible average equity
 (2)                                  22.19        20.11        20.28
Efficiency ratio (3)                  49.29        51.07        51.14
Effective tax rate                    28.88        30.31        29.64
Dividend payout ratio (basic)         39.74        43.06        43.66

----------------------------------------------------------------------
Average Balances
Assets                          $14,867,339$14,901,747$14,460,358
Earning assets                   13,836,102   13,870,491   13,427,986
Interest-bearing liabilities     11,886,642   11,792,552   11,459,673
Loans                            10,578,430   10,559,154   10,128,826
Deposits                          8,901,441    8,934,668    8,947,047
Stockholders' equity              1,280,950    1,275,914    1,268,355
Stockholders' equity / assets          8.62%        8.56%        8.77%

----------------------------------------------------------------------
At Period End
Assets                          $15,089,166$15,043,275$15,044,702
Loans                            10,275,469   10,303,225   10,086,510
Allowance for loan losses           170,391      162,541      155,288
Deposits                          9,060,234    9,124,852    8,947,353
Stockholders' equity              1,285,866    1,272,183    1,270,691
Stockholders' equity / assets          8.52%        8.46%        8.45%
Goodwill and core deposit
 intangibles                        221,004      221,354      221,963
Shares outstanding, end of period    73,870       74,281       74,598

----------------------------------------------------------------------
Credit Quality
Nonaccrual loans                    $90,384$94,132$93,250
Loans 90 or more days past due
 and still accruing (4)               3,425        3,912        5,981
Restructured loans                      844        1,258        1,110
                                ------------ ------------ ------------
    Total nonperforming loans        94,653       99,302      100,341
Other real estate owned              12,949       11,448        3,331
                                ------------ ------------ ------------
    Total nonperforming assets      107,602      110,750      103,672
                                ============ ============ ============
Net charge-offs                       5,110        7,361        6,276

Allowance for loan losses / loans      1.66%        1.58%        1.54%
Allowance for loan losses /
 nonperforming loans                 180.02       163.68       154.76
Nonperforming loans / total loans      0.92         0.96         0.99
Nonperforming assets / total
 assets                                0.71         0.74         0.69
Net charge-offs / average loans
 (annualized)                          0.20         0.28         0.25
Year-to-date net charge-offs /
 average loans                         0.20         0.28         0.29

----------------------------------------------------------------------
(in thousands, except per share               2nd Qtr      1st Qtr
 data)                                          2002         2002
----------------------------------------------------------------------
Summary of Operations
Interest income                               $201,857$194,306
Interest expense                                76,089        76,879
Net interest income                            125,768       117,427
Provision for loan losses                       12,003        11,251
Net interest income after
 provision for loan losses                     113,765       106,176
Asset sale gains (losses), net                      41           331
Investment securities gains
 (losses), net                                       -             -
Noninterest income (excluding
 securities & asset gains)                      49,862        47,069
Noninterest expense                             91,187        82,416
Income taxes                                    20,137        19,698
Net income                                      52,344        51,462
Taxable equivalent adjustment                    6,037         6,063

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                                          $0.69$0.70
  Diluted                                         0.68          0.70
Dividends                                         0.31          0.28

Market Value:
  High                                          $38.25$35.29
  Low                                            33.63         30.37
  Close                                          37.71         34.57
Book value                                       16.84         16.23

----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE)                         3.96%         3.91%
Return on average assets                          1.47          1.54
Return on average equity                         16.79         18.46
Return on tangible average equity
 (2)                                             20.42         21.12
Efficiency ratio (3)                             50.19         48.32
Effective tax rate                               27.78         27.68
Dividend payout ratio (basic)                    44.93         40.26

----------------------------------------------------------------------
Average Balances
Assets                                     $14,273,232$13,538,602
Earning assets                              13,248,590    12,616,040
Interest-bearing liabilities                11,400,302    10,923,561
Loans                                        9,902,462     9,405,417
Deposits                                     9,081,434     8,683,879
Stockholders' equity                         1,250,748     1,130,714
Stockholders' equity / assets                     8.76%         8.35%

----------------------------------------------------------------------
At Period End
Assets                                     $14,476,993$14,328,151
Loans                                        9,882,669     9,757,584
Allowance for loan losses                      148,733       144,350
Deposits                                     9,026,244     9,192,692
Stockholders' equity                         1,275,569     1,230,982
Stockholders' equity / assets                     8.81%         8.59%
Goodwill and core deposit
 intangibles                                   222,539       223,173
Shares outstanding, end of period               75,746        75,849

----------------------------------------------------------------------
Credit Quality
Nonaccrual loans                               $82,474$63,626
Loans 90 or more days past due
 and still accruing (4)                          4,683         4,991
Restructured loans                                 115         3,097
                                           ------------ -------------
    Total nonperforming loans                   87,272        71,714
Other real estate owned                          2,610         2,782
                                           ------------ -------------
    Total nonperforming assets                  89,882        74,496
                                           ============ =============
Net charge-offs                                  7,620         7,090

Allowance for loan losses / loans                 1.50%         1.48%
Allowance for loan losses /
 nonperforming loans                            170.42        201.29
Nonperforming loans / total loans                 0.88          0.73
Nonperforming assets / total
 assets                                           0.62          0.52
Net charge-offs / average loans
 (annualized)                                     0.31          0.31
Year-to-date net charge-offs /
 average loans                                    0.31          0.31

----------------------------------------------------------------------

    (1) Per share data adjusted retroactively for stock splits and
    stock dividends.

    (2) Return on tangible average equity = Net income divided by
    average stockholders' equity excluding goodwill and core deposit
    intangible assets.

    (3) 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.

    (4) Does not include guaranteed student loans. Guaranteed student
    loans 90+ days past due and still accruing totaled $17.4 million
    as of March 31, 2003.


----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp                        Three months ended
                                                March 31,
                                      ------------------------------
(in thousands, except per share data)        2003       2002  % Change
------------------------------------- --------------------------------
Allowance for Loan Losses
Beginning balance                        $162,541$128,204    26.8%
Balance related to acquisitions                 -     11,985     N/M
Provision for loan losses                  12,960     11,251    15.2%
Charge-offs                                (5,754)    (7,985) (27.9%)
Recoveries                                    644        895  (28.0%)
                                      -----------------------
Net charge-offs                            (5,110)    (7,090) (27.9%)
                                      -----------------------
Ending Balance                           $170,391$144,350    18.0%
                                      =======================

----------------------------------------------------------------------
Performance Ratios (annualized)
Return on average assets                    1.58%      1.54%     4  bp
Return on average equity                   18.36      18.46    (10) bp
Return on tangible average equity (1)      22.19      21.12    107  bp
Efficiency ratio (2)                       49.29      48.32     97  bp
Effective tax rate                         28.88      27.68    120  bp
Dividend payout ratio (basic)              39.74      40.26    (52) bp

----------------------------------------------------------------------
Average Yield and Rate
Loans                                       5.65%      6.47%   (82) bp
Investments and other                       5.27%      6.07%   (80) bp
  Total earning assets                      5.56%      6.37%   (81) bp

Interest-bearing deposits, excluding                                bp
 brokered CDs                               1.76%      2.68%   (92)
Brokered CDs                                1.91%      2.04%   (13) bp
Wholesale funding                           2.28%      3.24%   (96) bp
  Total interest-bearing liabilities        1.96%      2.84%   (88) bp

Net interest margin                         3.87%      3.91%    (4) bp

----------------------------------------------------------------------
Period End Loan Composition                    March 31,
                                      -----------------------
                                             2003       2002
                                      ------------------------------
Commercial, financial & agricultural   $2,238,657$2,162,954    3.5%
Real estate - construction                912,510    801,467   13.9%
Commercial real estate                  3,188,907  2,920,865    9.2%
Lease financing                            38,712     37,211    4.0%
                                      -----------------------
  Commercial                            6,378,786  5,922,497    7.7%
Residential mortgage                    2,325,032  2,418,822  (3.9%)
Home equity                               858,928    695,519   23.5%
                                      -----------------------
  Residential real estate               3,183,960  3,114,341    2.2%
Consumer                                  712,723    720,746  (1.1%)
                                      -----------------------
  Total loans                         $10,275,469$9,757,584    5.3%
                                      =======================

------------------------------------- ------------------------------
Period End Deposit Composition                  March 31,
                                      -----------------------
                                             2003       2002
                                      ------------------------------
Demand                                 $1,692,979$1,437,798   17.7%
Savings                                   935,740    883,794    5.9%
Interest-bearing demand                 1,540,757    989,519   55.7%
Money market                            1,658,735  2,084,671 (20.4%)
Brokered CDs                              208,650    315,184 (33.8%)
Other time deposits                     3,023,373  3,481,726 (13.2%)
                                      -----------------------
  Total deposits                       $9,060,234$9,192,692  (1.4%)
                                      =======================

------------------------------------- --------------------------------

    (1) Return on tangible average equity = Net income divided by
    average stockholders' equity less goodwill and core deposit
    intangible assets.

    (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.


N/M = Not Meaningful
bp = basis points

    CONTACT: Investors:
             Associated Banc-Corp
             Joe Selner, 920/491-7120
             or
             Media:
             Associated Banc-Corp
             Jon Drayna, 920/491-7006

    SOURCE: Associated Banc-Corp
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