Press Release Details 5.23

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Associated Banc-Corp 1St Quarter 2005 Earnings 59 Cents up 11 Percent

04/21/2005

GREEN BAY, Wis.--(BUSINESS WIRE)--April 21, 2005--Associated Banc-Corp (Nasdaq:ASBC) earned 59 cents per diluted share in the first quarter of 2005, up 11 percent from 53 cents earned in the first quarter of 2004. Net income for the first quarter was $77.5 million, up 30 percent compared to first quarter 2004 of $59.6 million.

In comparison, diluted earnings per share and net income for the fourth quarter of 2004 were 57 cents and $70.9 million, respectively.

Associated's acquisition of First Federal Capital Corp., a $4 billion thrift, on Oct. 29, 2004, affects comparisons to past periods. Additionally, the acquisition of Jabas Group, Inc., an employee benefits firm, on April 1, 2004 affects the comparison of retail commission income and noninterest expenses between first quarter periods.

For the first quarter of 2005, return on average assets was 1.54 percent, compared to 1.49 percent and 1.57 percent for fourth and first quarters of 2004, respectively. Return on average equity for the first quarter of 2005 was 15.52 percent, compared to 15.46 percent for the previous quarter and 17.37 percent for the year-earlier quarter. Comparably, return on average tangible equity (which is a non-GAAP measure that excludes average goodwill and other intangible assets from average equity) was 24.13 percent, 22.47 percent and 21.13 percent for the same respective quarter periods. Book value per share rose to $15.61 as of March 31, 2005, up 23 percent compared to a year earlier.

"Our first quarter performance reflects the success of the First Federal integration and progress on several of our strategic initiatives," said Paul S. Beideman, president and CEO of Associated Banc-Corp. "While we were primarily focused on the First Federal conversion, we saw overall loan growth, solid asset quality performance, and growth in several categories of noninterest income," he said.

Associated's net interest income for the first quarter of 2005 was $165.9 million, compared to $158.5 million for fourth quarter 2004 and $129.1 million in the year-earlier quarter. The increase is due predominantly to higher average balance sheet volumes.

Net interest margin was 3.68 percent, compared to 3.74 percent and 3.80 percent for fourth and first quarters of 2004, respectively. The flattening of the yield curve and competitive pricing pressures have substantially offset the benefits to the margin from interest rate increases that began in the second half of 2004 and continue into 2005.

Period end loans at March 31, 2005 were $13.9 billion, up slightly from Dec. 31, 2004 and up 33 percent over a year earlier. Quarterly average loan balances, a key driver to net interest income, were up 35 percent annualized compared to fourth quarter 2004 and up 34 percent between first quarter periods. Adjusting for balances acquired with First Federal, average loan growth was sustained at approximately 6 percent annualized compared to both fourth and first quarters of 2004.

Period end deposits at March 31, 2005 were $12.2 billion, compared to $12.8 billion at year-end 2004 and $9.7 billion a year ago. On average, deposits were $12.4 billion for first quarter 2005, compared to $11.7 billion (up 24 percent annualized) and $9.6 billion (up 29 percent) for fourth and first quarters of 2004, respectively. Adjusting for balances acquired with First Federal, average deposits for first quarter 2005 were down approximately 6 percent annualized compared to fourth quarter 2004, and up approximately 1 percent over first quarter 2004 averages.

The decline in deposits from the fourth quarter is the result of usual seasonal trends, driven largely by escrow deposits which accumulate throughout the year, are dispersed at year-end and re-build as the year progresses. On average, escrow deposits declined by $0.2 billion between fourth quarter 2004 and first quarter 2005. In addition, the fourth quarter of 2004 experienced a large increase in municipal and institutional deposits which were withdrawn by the end of the first quarter of 2005, totaling approximately $0.3 billion.

Asset quality indicators remained strong and resolution to problem credits continued. First quarter 2005 net charge-offs were $2.2 million (0.06 percent of average loans), compared to $3.6 million (0.11 percent) for fourth quarter 2004, and $5.1 million (0.20 percent) for first quarter 2004. Nonperforming loans at March 31, 2005 were $102.9 million, representing 0.74 percent of loans, compared to 0.83 percent of loans at year-end 2004 and 0.89 percent of loans at March 31, 2004. The provision for loan losses was $2.3 million, $3.6 million, and $5.2 million, for first quarter 2005, fourth quarter 2004, and first quarter 2004, respectively.

At March 31, 2005, the allowance for loan losses was $189.9 million. The allowance for loan losses to total loans was 1.36 percent and covered 184 percent of nonperforming loans at March 31,2005, compared to 1.37 percent and 165 percent, respectively, at year-end 2004, and 1.69 percent and 190 percent, respectively, at March 31, 2004.

As mentioned earlier, quarterly comparisons of noninterest income and noninterest expense are particularly affected by the timing of acquisitions, with fourth quarter 2004 including only two months of First Federal activity and first quarter 2004 carrying no First Federal or Jabas activity.

Noninterest income was strong at $71.4 million for first quarter 2005, up $12.3 million (21 percent) over fourth quarter 2004 and up $25.2 million (55 percent) over first quarter last year. Excluding a non-recurring gain from the dissolution of stock in a regional ATM network of approximately $4 million, recorded in other income during first quarter 2005, noninterest income was up 14 percent and 46 percent over fourth and first quarters of 2004, respectively.

Net mortgage banking income (gross mortgage banking income less mortgage servicing rights (MSR) expense) was $9.9 million for first quarter 2005, up $3.8 million over fourth quarter 2004. The increase was the net result of lower MSR expense and higher servicing fees, offset in part by lower gains on sales and other fees.

Including First Federal, the average portfolio serviced for others increased, resulting in a $1.0 million (18 percent) increase to servicing fees between fourth quarter 2004 and first quarter 2005. Rising mortgage interest rates slowed secondary mortgage production (down 21 percent to $337 million compared to fourth quarter 2004), lowering resultant gains on sales and other related fees by $1.7 million. However, rising rates also slowed prepayment speeds, a predominant valuation factor, increasing the value of the MSR asset and requiring less valuation reserve. Consequently, MSR expense was $4.5 million lower than fourth quarter 2004, including a $4.0 million valuation reserve reversal in first quarter 2005 compared to a $1.0 million valuation reserve addition in fourth quarter 2004.

At March 31, 2005, the net MSR asset was $78.2 million, representing 82 basis points of the $9.53 billion portfolio serviced for others, compared to 80 basis points at Dec. 31, 2004.

Service charges on deposit accounts were $18.7 million, up $1.7 million (10 percent) over fourth quarter 2004, and credit card and other nondeposit fees were $9.1 million, up $0.9 million (11 percent), both due largely to the increased deposit base and card base from First Federal. Retail commissions were $14.7 million, up $2.0 million (16 percent) over fourth quarter 2004, from the seasonal increase in profit sharing/contingency income from insurance carriers and increased sales.

Noninterest expense was $121.2 million for first quarter 2005, up $11.3 million (10 percent) over fourth quarter 2004 and up $34.4 million (40 percent) over first quarter last year, influenced by the timing of the First Federal and Jabas acquisitions. During the first quarter, $3 million of noninterest expenses recorded in various categories were specifically attributable to the integration activities and conversion of First Federal onto Associated's operating systems in mid-February. As a result of the conversion, Associated is now positioned to phase-in anticipated cost savings through the remainder of 2005.

Personnel expense was $73.0 million in the first quarter, up $7.8 million or 12 percent over fourth quarter 2004, including the extra month of First Federal's employee base, merit increases between years, increased overtime, and the usual first quarter increases in personnel taxes. Occupancy expense of $9.9 million was up $1.6 million (19 percent) compared to fourth quarter 2004, including seasonal increases in utilities and snow removal costs. All other noninterest expense categories combined were up $1.9 million (5 percent) over fourth quarter 2004, a combination of increased expenses related to the extra month of First Federal and conversion and integration costs, offset in part with controlled discretionary spending.

The efficiency ratio remained favorable at 49.73 percent, 49.07 percent, and 48.40 percent for first quarter 2005, fourth quarter 2004 and first quarter 2004, respectively.

"Our successful integration of First Federal positions us well for the future as we capture synergies and sell our expanded product line to First Federal customers," Beideman said.

He added, "While the rate environment and competition for loans and deposits are challenging, we're confident that our strategies will allow us to meet consensus earnings estimates for 2005."

Associated repurchased 0.4 million shares of its common stock in the first quarter, at an average price of $32.76 per share. Also, during the first quarter, the company paid a dividend of 25 cents per share, up 10 percent from the year-earlier dividend.

On March 21, 2005, Associated signed a definitive agreement to acquire State Financial Services Corp (Nasdaq:SFSW) in an all-stock transaction, whereby State Financial shareholders receive 1.20 shares of Associated common stock for each share of State Financial common stock they hold. Based on Associated's closing share price on March 18, 2005, the transaction is valued at approximately $278 million. At March 31, 2005, State Financial is a $1.5 billion financial services company based in Milwaukee, with 29 banking branches in Southeastern Wisconsin and Northeastern Illinois.

Associated will host a conference call for investors and analysts at 3 p.m. CDT today. The toll-free dial-in number is 877-654-5513. Participants should ask the operator for the Associated Banc-Corp earnings call, or for call ID number 5626644. A taped play-back of the call will be available through April 28 by calling 800-642-1687.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $20.5 billion. Associated has more than 300 banking offices serving more than 170 communities in Wisconsin, Illinois, and Minnesota. The company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.AssociatedBank.com.

Statements made in this document that are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "should," "will," "intend," or similar expressions. Outcomes related to such statements are subject to numerous risk factors and uncertainties including those listed in the company's Annual Report to be filed on Form 10-K.

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

Consolidated Balance Sheets (Unaudited)
Associated Banc-CorpMarch 31,  December 31,
(in thousands)                         2005         2004      % Change
----------------------------------------------------------------------
Assets
Cash and due from banks            $   327,487 $    389,311    (15.9%)
Interest-bearing deposits in other
 financial institutions                 14,202       13,321       6.6%
Federal funds sold and securities
 purchased under agreements
 to resell                              15,655       55,440    (71.8%)
Securities available for sale, at
 fair value                          4,835,134    4,815,344       0.4%
Loans held for sale                     79,975       64,964      23.1%
Loans                               13,923,196   13,881,887       0.3%
Allowance for loan losses             (189,917)    (189,762)      0.1%
                                   ------------ ------------
    Loans, net                      13,733,279   13,692,125       0.3%
Premises and equipment                 180,315      184,944     (2.5%)
Goodwill                               679,993      679,993       0.0%
Intangible assets                      119,381      119,440     (0.0%)
Other assets                           517,021      505,254       2.3%
                                   ------------ ------------
    Total assets                   $20,502,442  $20,520,136     (0.1%)
                                   ============ ============

Liabilities and Stockholders' Equity
Noninterest-bearing deposits       $ 2,156,592  $ 2,347,611     (8.1%)
Interest-bearing deposits,
 excluding Brokered CDs              9,819,201   10,077,069     (2.6%)
Brokered CDs                           218,111      361,559    (39.7%)
                                   ------------ ------------
    Total deposits                  12,193,904   12,786,239     (4.6%)
Short-term borrowings                2,778,161    2,926,716     (5.1%)
Long-term funding                    3,332,804    2,604,540      28.0%
Accrued expenses and other
 liabilities                           172,502      185,222     (6.9%)
                                   ------------ ------------
    Total liabilities               18,477,371   18,502,717     (0.1%)
Stockholders' Equity
  Preferred stock                            -            -
  Common stock                           1,300        1,300       0.0%
  Surplus                            1,128,148    1,127,205       0.1%
  Retained earnings                    898,578      858,847       4.6%
  Accumulated other comprehensive
   income                               10,505       41,205    (74.5%)
  Deferred compensation                 (3,814)      (2,122)     79.7%
  Treasury stock, at cost               (9,646)      (9,016)      7.0%
                                   ------------ ------------
    Total stockholders' equity       2,025,071    2,017,419       0.4%
                                   ------------ ------------
    Total liabilities and
     stockholders' equity          $20,502,442  $20,520,136     (0.1%)
                                   ============ ============

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

Consolidated Balance Sheets (Unaudited)
Associated Banc-CorpMarch 31,
(in thousands)                                     2004      % Change
----------------------------------------------------------------------
Assets
Cash and due from banks                         $   323,686       1.2%
Interest-bearing deposits in other
 financial institutions                              17,057    (16.7%)
Federal funds sold and securities
 purchased under agreements to resell                 7,000     123.6%
Securities available for sale, at fair value      3,883,470      24.5%
Loans held for sale                                 120,699    (33.7%)
Loans                                            10,486,610      32.8%
Allowance for loan losses                          (177,717)      6.9%
                                                ------------
    Loans, net                                   10,308,893      33.2%
Premises and equipment                              130,028      38.7%
Goodwill                                            224,388     203.0%
Intangible assets                                    59,899      99.3%
Other assets                                        435,748      18.7%
                                                ------------
    Total assets                                $15,510,868      32.2%
                                                ============

Liabilities and Stockholders' Equity
Noninterest-bearing deposits                    $ 1,755,485      22.8%
Interest-bearing deposits, excluding
 Brokered CDs                                     7,716,290      27.3%
Brokered CDs                                        230,983     (5.6%)
                                                ------------
    Total deposits                                9,702,758      25.7%
Short-term borrowings                             2,516,270      10.4%
Long-term funding                                 1,749,418      90.5%
Accrued expenses and other
 liabilities                                        147,129      17.2%
                                                ------------
    Total liabilities                            14,115,575      30.9%
Stockholders' Equity
  Preferred stock                                         -
  Common stock                                        1,105      17.6%
  Surplus                                           582,559      93.7%
  Retained earnings                                 755,627      18.9%
  Accumulated other comprehensive income             66,526    (84.2%)
  Deferred compensation                              (1,981)     92.5%
  Treasury stock, at cost                            (8,543)     12.9%
                                                ------------
    Total stockholders' equity                    1,395,293      45.1%
                                                ------------
    Total liabilities and
     stockholders' equity                       $15,510,868      32.2%
                                                ============

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

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
                                            For The Three
                                            Months Ended,
                                               March 31,
                                         -------------------
(in thousands, except per share amounts)    2005      2004   % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans               $200,309  $135,252      48.1%
Interest and dividends on investment
 securities and deposits with other
 financial institutions
  Taxable                                  41,034    31,032      32.2%
  Tax-exempt                                9,723    10,235     (5.0%)
Interest on federal funds sold and
 securities purchased under agreements
 to resell                                     82        27     203.7%
                                         --------- ---------
    Total interest income                 251,148   176,546      42.3%
Interest Expense
Interest on deposits                       44,433    27,554      61.3%
Interest on short-term borrowings          17,169     6,539     162.6%
Interest on long-term funding              23,638    13,378      76.7%
                                         --------- ---------
    Total interest expense                 85,240    47,471      79.6%
                                         --------- ---------
Net Interest Income                       165,908   129,075      28.5%
Provision for loan losses                   2,327     5,176    (55.0%)
                                         --------- ---------
Net interest income after provision for
 loan losses                              163,581   123,899      32.0%
Noninterest Income
Trust service fees                          8,328     7,868       5.8%
Service charges on deposit accounts        18,665    12,397      50.6%
Mortgage banking, net                       9,884     2,254     338.5%
Credit card and other nondeposit fees       9,111     5,671      60.7%
Retail commissions                         14,705     9,357      57.2%
Bank owned life insurance income            2,168     3,355    (35.4%)
Asset sale gains (losses), net               (302)      222       N/M
Investment securities gains, net                -     1,931       N/M
Other                                       8,814     3,132     181.4%
                                         --------- ---------
    Total noninterest income               71,373    46,187      54.5%
Noninterest Expense
Personnel expense                          72,985    52,276      39.6%
Occupancy                                   9,888     7,472      32.3%
Equipment                                   4,018     2,999      34.0%
Data processing                             6,293     5,673      10.9%
Business development and advertising        3,939     2,657      48.2%
Stationery and supplies                     1,844     1,226      50.4%
Other intangible amortization               1,994       782     155.0%
Other                                      20,281    13,799      47.0%
                                         --------- ---------
    Total noninterest expense             121,242    86,884      39.5%
                                         --------- ---------
Income before income taxes                113,712    83,202      36.7%
Income tax expense                         36,242    23,642      53.3%
                                         --------- ---------
Net Income                               $ 77,470  $ 59,560      30.1%
                                         ========= =========

Earnings Per Share:
  Basic                                  $   0.60  $   0.54      11.1%
  Diluted                                $   0.59  $   0.53      11.3%
Average Shares Outstanding:
  Basic                                   129,781   110,294      17.7%
  Diluted                                 131,358   111,830      17.5%

N/M - Not meaningful.


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

Consolidated Statements of Income (Unaudited) - Quarterly Trend
Associated Banc-Corp


(in thousands, except   1Q05      4Q04      3Q04      2Q04      1Q04
per share amounts)
----------------------------------------------------------------------
Interest Income
Interest and fees on
 loans               $200,309  $179,612  $142,389  $137,449  $135,252
Interest and
 dividends on
 investment
 securities
 and deposits in
 other financial
 institutions:
  Taxable              41,034    37,631    31,590    30,767    31,032
  Tax-exempt            9,723    10,047    10,255    10,267    10,235
Interest on federal
 funds sold and
 securities purchased
 under agreements
 to resell                 82       260       241        68        27
                     --------- --------- --------- --------- ---------
    Total interest
     income           251,148   227,550   184,475   178,551   176,546
Interest Expense
Interest on deposits   44,433    36,835    27,191    26,656    27,554
Interest on
 short-term borrowings 17,169    14,898    10,262     7,241     6,539
Interest on
 long-term funding     23,638    17,360    13,806    12,775    13,378
                     --------- --------- --------- --------- ---------
    Total interest
     expense           85,240    69,093    51,259    46,672    47,471
                     --------- --------- --------- --------- ---------
Net Interest Income   165,908   158,457   133,216   131,879   129,075
Provision for loan
 losses                 2,327     3,603         -     5,889     5,176
                     --------- --------- --------- --------- ---------
Net interest income
 after provision for
 loan losses          163,581   154,854   133,216   125,990   123,899
Noninterest Income
Trust service fees      8,328     8,107     7,773     8,043     7,868
Service charges on
 deposit accounts      18,665    16,943    13,672    13,141    12,397
Mortgage banking,
 net                    9,884     6,046       618    11,413     2,254
Credit card and
 other nondeposit
 fees                   9,111     8,183     6,253     6,074     5,671
Retail commissions     14,705    12,727    11,925    13,162     9,357
Bank owned life
 insurance income       2,168     2,525     3,580     3,641     3,355
Asset sale gains
 (losses), net           (302)      432       309       218       222
Investment
 securities gains
 (losses), net              -      (719)       (6)     (569)    1,931
Other                   8,814     4,793     3,034     2,742     3,132
                     --------- --------- --------- --------- ---------
    Total noninterest
     income            71,373    59,037    47,158    57,865    46,187
Noninterest Expense
Personnel expense      72,985    65,193    53,467    53,612    52,276
Occupancy               9,888     8,297     6,939     6,864     7,472
Equipment               4,018     3,855     3,022     2,878     2,999
Data processing         6,293     5,966     5,865     6,128     5,673
Business development
 and advertising        3,939     4,271     3,990     4,057     2,657
Stationery and
 supplies               1,844     1,567     1,214     1,429     1,226
Other intangible
 amortization           1,994     1,699       935       934       782
Other                  20,281    19,119    13,599    16,085    13,799
                     --------- --------- --------- --------- ---------
    Total noninterest
     expense          121,242   109,967    89,031    91,987    86,884
                     --------- --------- --------- --------- ---------
Income before income
 taxes                113,712   103,924    91,343    91,868    83,202
Income tax expense     36,242    33,069    27,977    27,363    23,642
                     --------- --------- --------- --------- ---------
Net Income           $ 77,470  $ 70,855  $ 63,366  $ 64,505  $ 59,560
                     ========= ========= ========= ========= =========

Earnings Per Share:
  Basic              $   0.60  $   0.57  $   0.58  $   0.59  $   0.54
  Diluted            $   0.59  $   0.57  $   0.57  $   0.58  $   0.53
Average Shares
 Outstanding:
  Basic               129,781   123,509   110,137   110,116   110,294
  Diluted             131,358   125,296   111,699   111,520   111,830


----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands, except             1st Qtr     4th Qtr      3rd Qtr
 per share & full time              2005        2004         2004
equivalent employee data)
----------------------------------------------------------------------
Summary of Operations
Net interest income                 165,908      158,457      133,216
Provision for loan losses             2,327        3,603            -
Asset sale gains (losses), net         (302)         432          309
Investment securities gains
 (losses), net                            -         (719)          (6)
Noninterest income (excluding
 securities & asset gains)           71,675       59,324       46,855
Noninterest expense                 121,242      109,967       89,031
Income before income taxes          113,712      103,924       91,343
Income taxes                         36,242       33,069       27,977
Net income                           77,470       70,855       63,366
Taxable equivalent adjustment         6,222        6,342        6,395

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                         $      0.60  $      0.57  $      0.58
  Diluted                              0.59         0.57         0.57
Dividends                            0.2500       0.2500       0.2500

Market Value:
  High                          $     33.50  $     34.85  $     32.19
  Low                                 30.60        32.08        28.81
  Close                               31.23        33.23        32.07
Book value                            15.61        15.55        13.18

----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin                    3.68%        3.74%        3.76%
Return on average assets               1.54         1.49         1.60
Return on average equity              15.52        15.46        17.76
Return on tangible average
 equity (2)                           24.13        22.47        21.69
Efficiency ratio (3)                  49.73        49.07        47.75
Effective tax rate                    31.87        31.82        30.63
Dividend payout ratio (4)             41.67        43.86        43.10

----------------------------------------------------------------------
Average Balances
Assets                          $20,467,698  $18,956,445  $15,730,451
Earning assets                   18,756,555   17,437,618   14,688,914
Interest-bearing liabilities     16,139,002   14,761,878   12,381,407
Loans                            13,977,621   12,858,394   10,708,701
Deposits                         12,359,040   11,658,646    9,621,557
Stockholders' equity              2,024,265    1,822,715    1,419,600
Stockholders' equity / assets          9.89%        9.62%        9.02%

----------------------------------------------------------------------
At Period End
Assets                          $20,502,442  $20,520,136  $16,135,761
Loans                            13,923,196   13,881,887   10,830,627
Allowance for loan losses           189,917      189,762      175,007
Goodwill                            679,993      679,993      232,564
Mortgage servicing rights, net       78,182       76,247       45,555
Other intangible assets              41,199       43,193       24,308
Deposits                         12,193,904   12,786,239    9,677,273
Stockholders' equity              2,025,071    2,017,419    1,453,465
Stockholders' equity / assets          9.88%        9.83%        9.01%
Shares outstanding, end of
 period                             129,697      129,770      110,281
Shares repurchased during
 period                                 411          376            -
Average per share cost of
 shares repurchased during
 period                         $     32.76  $     33.25  $         -
Year-to-date shares repurchased
 during period                          411        1,073          697
YTD average per share cost of
 shares repurchased during
 period                         $     32.76  $     30.43  $     28.91

----------------------------------------------------------------------
Selected trend information
Average full time equivalent
 employees                            5,132        4,746        3,979
Trust assets under management,
 at market value                $ 4,700,000  $ 4,600,000  $ 4,400,000
Mortgage loans originated for
 sale                               337,406      427,951      253,917
Portfolio serviced for others     9,528,000    9,543,000    6,011,000
Mortgage servicing rights,
 net / Portfolio serviced for
 others                                0.82%        0.80%        0.76%


----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands, except                         2nd Qtr      1st Qtr
per share & full time                          2004          2004
equivalent employee data)
----------------------------------------------------------------------
Summary of Operations
Net interest income                              131,879      129,075
Provision for loan losses                          5,889        5,176
Asset sale gains (losses), net                       218          222
Investment securities gains
 (losses), net                                      (569)       1,931
Noninterest income (excluding
 securities & asset gains)                        58,216       44,034
Noninterest expense                               91,987       86,884
Income before income taxes                        91,868       83,202
Income taxes                                      27,363       23,642
Net income                                        64,505       59,560
Taxable equivalent adjustment                      6,387        6,404

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                                      $      0.59  $      0.54
  Diluted                                           0.58         0.53
Dividends                                         0.2500       0.2267

Market Value:
  High                                       $     30.13  $     30.37
  Low                                              27.09        28.08
  Close                                            29.63        29.86
Book value                                         12.53        12.67

----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin                                 3.80%        3.80%
Return on average assets                            1.67         1.57
Return on average equity                           18.87        17.37
Return on tangible average equity (2)              23.15        21.13
Efficiency ratio (3)                               46.82        48.40
Effective tax rate                                 29.78        28.42
Dividend payout ratio (4)                          42.37        41.98

----------------------------------------------------------------------
Average Balances
Assets                                       $15,498,005  $15,261,277
Earning assets                                14,480,701   14,185,569
Interest-bearing liabilities                  12,231,733   12,083,003
Loans                                         10,685,542   10,433,411
Deposits                                       9,701,945    9,585,074
Stockholders' equity                           1,374,632    1,378,804
Stockholders' equity / assets                       8.87%        9.03%

----------------------------------------------------------------------
At Period End
Assets                                       $15,502,556  $15,510,868
Loans                                         10,556,603   10,486,610
Allowance for loan losses                        177,980      177,717
Goodwill                                         232,528      224,388
Mortgage servicing rights, net                    48,735       39,649
Other intangible assets                           25,242       20,250
Deposits                                       9,583,592    9,702,758
Stockholders' equity                           1,378,894    1,395,293
Stockholders' equity / assets                       8.89%        9.00%
Shares outstanding, end of period                110,048      110,168
Shares repurchased during period                     205          492
Average per share cost of shares
 repurchased during period                   $     27.93  $     29.32
Year-to-date shares repurchased
 during period                                       697          492
YTD average per share cost of
 shares repurchased during period            $     28.91  $     29.32

----------------------------------------------------------------------
Selected trend information
Average full time equivalent
 employees                                         4,010        4,024
Trust assets under management, at
 market value                                 $4,300,000   $4,300,000
Mortgage loans originated for
 sale                                            579,020      359,791
Portfolio serviced for others                  6,010,000    5,904,000
Mortgage servicing rights,
 net / Portfolio serviced for others                0.81%        0.67%

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

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

(2) Return on tangible average equity = Net income divided by average
    equity excluding average goodwill and other intangible assets.
    This is a non-GAAP financial measure.

(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) Ratio is based upon basic earnings per share.



----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp                      Three months ended
                                                March 31,
                                          ---------------------------
(in thousands)                               2005      2004  % Change
----------------------------------------- --------- ------------------
Allowance for Loan Losses
Beginning balance                         $189,762  $177,622    6.8%
Provision for loan losses                    2,327     5,176  (55.0%)
Charge offs                                 (5,683)   (6,062)  (6.3%)
Recoveries                                   3,511       981   257.9%
                                          --------- ---------
Net charge offs                             (2,172)   (5,081) (57.3%)
                                          --------- ---------
Ending Balance                            $189,917  $177,717    6.9%
                                          ========= =========
----------------------------------------------------------------------

Credit Quality                                               1Q05 vs
                                                               4Q04
                                  Mar 31, 2005Dec 31, 2004 % Change
                                  ------------- ------------ ---------
Nonaccrual loans                     $  99,835    $ 112,761   (11.5%)
Loans 90 or more days past due
 and still accruing                      3,068        2,153    42.5%
Restructured loans                          36           37    (2.7%)
                                  ------------- ------------
    Total nonperforming loans          102,939      114,951   (10.4%)
Other real estate owned                  4,019        3,915     2.7%
                                  ------------- ------------
    Total nonperforming assets         106,958      118,866   (10.0%)
                                  ============= ============
Provision for loan losses                2,327        3,603   (35.4%)
Net charge offs                          2,172        3,598   (39.6%)

Allowance for loan losses / loans         1.36%        1.37%
Allowance for loan losses /
 nonperforming loans                    184.49       165.08
Nonperforming loans / total loans         0.74         0.83
Nonperforming assets / total
 assets                                   0.52         0.58
Net charge offs / average loans
 (annualized)                             0.06         0.11
Year-to-date net charge offs /
 average loans                            0.06         0.15


Credit Quality
                                                             1Q05 vs
                                  Sept 30, June 30, Mar 31,    1Q04
                                    2004     2004     2004   % Change
                                  -------- -------- -------- ---------
Nonaccrual loans                  $81,124  $80,622  $88,313     13.0%
Loans 90 or more days past due
 and still accruing                10,309    5,207    5,258    (41.7%)
Restructured loans                     39       40       42    (14.3%)
                                  -------- -------- --------
    Total nonperforming loans      91,472   85,869   93,613     10.0%
Other real estate owned             4,526    6,613    7,199    (44.2%)
                                  -------- -------- --------
    Total nonperforming assets     95,998   92,482  100,812      6.1%
                                  ======== ======== ========
Provision for loan losses               -    5,889    5,176    (55.0%)
Net charge offs                     2,973    5,626    5,081    (57.3%)

Allowance for loan losses / loans    1.62%    1.69%    1.69%
Allowance for loan losses /
 nonperforming loans               191.32   207.27   189.84
Nonperforming loans / total loans    0.84     0.81     0.89
Nonperforming assets / total
 assets                              0.59     0.60     0.65
Net charge offs / average loans
 (annualized)                        0.11     0.21     0.20
Year-to-date net charge offs /
 average loans                       0.17     0.20     0.20


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

Period End Loan Composition                                 1Q05 vs
                                                              4Q04
                                Mar 31, 2005Dec 31, 2004  % Change
                                ------------   ------------ ----------
Commercial, financial &
 agricultural                   $ 2,852,462    $ 2,803,333      1.8%
Real estate - construction        1,569,013      1,459,629      7.5%
Commercial real estate            3,813,465      3,933,131     (3.0%)
Lease financing                      50,181         50,718     (1.1%)
                                ------------   ------------
  Commercial                      8,285,121      8,246,811      0.5%
Home equity (a)                   1,744,676 (b)  1,866,485     (6.5%)
Installment                       1,048,510      1,054,011     (0.5%)
                                ------------   ------------
  Retail                          2,793,186      2,920,496     (4.4%)
  Residential mortgage            2,844,889 (b)  2,714,580      4.8%
                                ------------   ------------
  Total loans                   $13,923,196    $13,881,887      0.3%
                                ============   ============



Period End Loan Composition
                                                             1Q05 vs
                        Sept 30,     June 30,     Mar 31,      1Q04
                          2004         2004        2004      % Change
                      ------------ ------------ ------------ ---------
Commercial, financial
 & agricultural       $ 2,479,764  $ 2,247,779  $ 2,123,846      34.3%
Real estate -
 construction           1,152,990    1,118,284    1,094,597      43.3%
Commercial real
 estate                 3,242,009    3,292,783    3,368,660      13.2%
Lease financing            49,423       48,979       45,998       9.1%
                      ------------ ------------ ------------
  Commercial            6,924,186    6,707,825    6,633,101      24.9%
Home equity (a)         1,290,436    1,231,077    1,204,541      44.8%
Installment               672,806      666,305      679,903      54.2%
                      ------------ ------------ ------------
  Retail                1,963,242    1,897,382    1,884,444      48.2%
  Residential
   mortgage             1,943,199    1,951,396    1,969,065      44.5%
                      ------------ ------------ ------------
  Total loans         $10,830,627  $10,556,603  $10,486,610      32.8%
                      ============ ============ ============

(a) Home equity includes home equity lines and residential mortgage
    junior liens.

(b) At conversion, approximately $150 million of loan balances were
    reclassified from home equity to residential mortgage.

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

Period End Deposit Composition                               1Q05 vs
                                                               4Q04
                                  Mar 31, 2005Dec 31, 2004 % Change
                                  ------------- ------------ ---------
Demand                             $ 2,156,592  $ 2,347,611     (8.1%)
Savings                              1,137,120    1,116,158      1.9%
Interest-bearing demand              2,485,548    2,854,880    (12.9%)
Money market                         2,112,490    2,083,717      1.4%
Brokered CDs                           218,111      361,559    (39.7%)
Other time deposits                  4,084,043    4,022,314      1.5%
                                  ------------- ------------
  Total deposits                   $12,193,904  $12,786,239     (4.6%)
                                  ============= ============



Period End Deposit Composition
                                                              1Q05 vs
                          Sept 30,    June 30,    Mar 31,       1Q04
                            2004        2004       2004      % Change
                         ----------- ----------- ----------- ---------
Demand                   $1,867,905  $1,822,716  $1,755,485      22.8%
Savings                     936,975     948,755     918,608      23.8%
Interest-bearing demand   2,334,072   2,355,287   2,375,492       4.6%
Money market              1,516,423   1,477,513   1,542,875      36.9%
Brokered CDs                186,326     263,435     230,983     (5.6%)
Other time deposits       2,835,572   2,715,886   2,879,315      41.8%
                         ----------- ----------- -----------
  Total deposits         $9,677,273  $9,583,592  $9,702,758      25.7%
                         =========== =========== ===========

----------------------------------------------------------------------
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                                    Three months ended March 31, 2005
                                    ---------------------------------
                                                  Interest   Average
                                      Average     Income /    Yield /
(in thousands)                        Balance      Expense     Rate
                                    ----------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                    $ 8,265,444  $  115,902     5.61%
      Residential mortgage            2,836,893      39,418     5.58
      Retail                          2,875,284      45,378     6.40
                                    ------------------------
         Total loans                 13,977,621     200,698     5.77
   Investments and other              4,778,934      56,672     4.75
                                    ------------------------
Total earning assets                 18,756,555     257,370     5.51
   Other assets, net                  1,711,143
                                    ------------
Total assets                        $20,467,698
                                    ============

Interest-bearing liabilities:
   Savings deposits                 $ 1,119,263  $    1,012     0.37%
   Interest-bearing demand deposits   2,602,085       6,746     1.05
   Money market deposits              2,116,014       7,396     1.42
   Time deposits, excluding
    Brokered CDs                      4,071,934      27,247     2.71
                                    ------------------------
    Total interest-bearing deposits,
     excluding Brokered CDs           9,909,296      42,401     1.74
   Brokered CDs                         318,529       2,032     2.59
                                    ------------------------
    Total interest-bearing deposits  10,227,825      44,433     1.76
   Wholesale funding                  5,911,177      40,807     2.76
                                    ------------------------
Total interest-bearing liabilities   16,139,002      85,240     2.13
   Noninterest-bearing demand         2,131,215
   Other liabilities                    173,216
   Stockholders' equity               2,024,265
                                    ------------
Total liabilities and
 stockholders' equity               $20,467,698
                                    ============
                                                 -----------
Net interest income and
 rate spread (1)                                 $  172,130     3.38%
                                                 ===========
Net interest margin (1)                                         3.68%
Taxable equivalent adjustment                    $    6,222
                                                 ===========


Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                                    Three months ended March 31, 2004
                                    ---------------------------------
                                                  Interest   Average
                                      Average     Income /    Yield /
(in thousands)                        Balance      Expense     Rate
                                    ----------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                    $ 6,532,215  $   79,787      4.83%
      Residential mortgage            2,041,383      29,109      5.71
      Retail                          1,859,813      26,619      5.75
                                    ------------------------
         Total loans                 10,433,411     135,515      5.17
   Investments and other              3,752,158      47,435      5.06
                                    ------------------------
Total earning assets                 14,185,569     182,950      5.14
   Other assets, net                  1,075,708
                                    ------------
Total assets                        $15,261,277
                                    ============

Interest-bearing liabilities:
   Savings deposits                 $   898,526  $      841      0.38%
   Interest-bearing demand deposits   2,364,013       4,700      0.80
   Money market deposits              1,577,010       3,163      0.81
   Time deposits, excluding
    Brokered CDs                      2,937,071      18,412      2.52
                                    ------------------------
    Total interest-bearing deposits,
     excluding Brokered CDs           7,776,620      27,116      1.40
   Brokered CDs                         144,345         438      1.22
                                    ------------------------
    Total interest-bearing deposits   7,920,965      27,554      1.40
   Wholesale funding                  4,162,038      19,917      1.90
                                    ------------------------
Total interest-bearing liabilities   12,083,003      47,471      1.57
   Noninterest-bearing demand         1,664,109
   Other liabilities                    135,361
   Stockholders' equity               1,378,804
                                    ------------
Total liabilities and stockholders'
 equity                             $15,261,277
                                    ============
                                                 -----------
Net interest income and
 rate spread (1)                                 $  135,479      3.57%
                                                 ===========
Net interest margin (1)                                          3.80%
Taxable equivalent adjustment                    $    6,404
                                                 ===========

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

(1) The yield on tax exempt loans and securities is computed on a
    taxable equivalent basis using a tax rate of 35% for all periods
    presented and is net of the effects of certain disallowed interest
    deductions.

(2) Nonaccrual loans and loans held for sale have been included in the
    average balances.

(3) Interest income includes net loan fees.

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

    SOURCE: Associated Banc-Corp
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