Associated 2000 EPS $2.46, up 5.1 percent.Business Editors GREEN BAY, Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--Jan. 18, 2001 Associated Banc-Corp Associated Banc-Corp is a bank holding company headquartered in Green Bay, Wisconsin. As of early 2007, it had $20.8 billion in assets and was the 41st largest bank holding company in the United States.[1] The company has over 5101 employees. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ASBC ASBC American Society of Brewing Chemists (St. Paul, MN) ASBC American Small Business Coalition ASBC Air and Space Basic Course (USAF) ASBC Archaeological Society of British Columbia ) reported earnings of $2.46 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for 2000, an increase of 5.1 percent over 1999 earnings per diluted share of $2.34. Net income for 2000 was $168.0 million, compared to 1999 net income of $164.9 million. For the fourth quarter 2000 earnings were 60 cents per diluted share, compared to 63 cents per diluted share in the fourth quarter of 1999. Cash earnings per share, which excludes amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , were $2.57 in 2000, compared to $2.44 in 1999. Return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) and equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) for 2000 were 1.31 percent and 18.26 percent, respectively. This compares with an ROA of 1.41 percent and an ROE of 18.04 percent in 1999. Book value per share increased 12.0 percent, from $13.09 at the end of 1999 to $14.65 at the end of 2000. Credit quality remains strong, with net charge offs of 0.10 percent of average loans for 2000, compared to 0.18 percent for 1999. The allowance for loan losses as a percent of loans was 1.35 percent at the end of 2000, compared with 1.36 percent a year earlier. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. were 0.54 percent of total loans in 2000, compared with 0.44 percent of total loans in 1999. Loans grew 8.4 percent from the end of 1999 to the end of 2000, excluding the effect of the sale of $128 million in credit card receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed earlier in 2000. Commercial loans, including commercial real estate, grew 18.5 percent year-over-year. "While we are pleased with the growth of the company, we have been significantly affected in 2000 by rising interest rates, which contributed to a reduction in our net interest margin. With the recent decline in interest rates, we expect continuing improvement in our net interest margin. Our ability to shift the mix of our business, grow loans, grow several important areas of fee income, successfully control expenses, and maintain strong credit quality are all positive," President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. C. Gallagher Gallagher may refer to: People
Fee income growth came mainly from growing service charges on deposit accounts; credit card and other non-deposit fees; and retail commissions, which include commissions on brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services and insurance products. Mortgage banking fees declined when compared to 1999 due to the increase in interest rates, while fees on trust services were flat when comparing 2000 to 1999, reflecting the weak stock market in 2000. Non-interest expenses were well controlled, the company said, increasing 4.1 percent from 1999 to 2000. Associated currently estimates the first quarter of 2001 earnings per share to be modestly higher than fourth quarter 2000 levels. The company expects additional improvement in each subsequent 2001 quarter, resulting in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for 2001 of $2.60 to $2.65. These expectations assume decreases in interest rates and stable asset quality. Associated expects continued strong commercial loan growth, modest deposit growth and expanding margins. Revenue is expected to grow in the neighborhood of 8 percent, excluding asset sales. Non-interest expenses will continue to be well controlled, with only modest increases. Gallagher said, "While slowing economic growth generally has raised credit quality concerns within some parts of the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, Associated's mix of business and strong credit culture make us confident our credit quality will remain solid. Gallagher added, "We also expect productivity gains and improved customer responsiveness responsiveness Medtalk The ability to respond to a stimulus. See Airway responsiveness. through ongoing efforts to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. and simplify the company. This will include bringing our Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee banks together under a single charter in the second quarter of 2001." Additionally, during 2000 the company sold six branches in non-core markets, and sold its retail credit card receivables, as part of its streamlining initiative. During the fourth quarter of 2000, the company repurchased 0.6 million shares, and repurchased 3.3 million shares in all of 2000. The company may also continue to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. shares opportunistically under its previously announced authorizations, which allow for the repurchase of an additional 3.4 million shares. All share and per share information in this news release has been restated to reflect the 10 percent stock dividend paid on June June: see month. 15, 2000. Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified diversified (di·verˑ·s multibank holding company Noun 1. multibank holding company - a bank holding company owning several banks bank holding company - a holding company owning or controlling one or more banks with total assets of $13.1 billion. Associated has more than 200 banking offices serving more than 150 communities in Wisconsin, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , and Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces . 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. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are interest rates, changes in the mix of the company's business, competitive pressures, general economic conditions and the risk factors detailed in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. Tables follow.
----------------------------------------------------------------------
Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
December 31, December 31,
(in thousands) 2000 1999
----------------------------------------------------------------------
Assets
Cash and due from banks $ 368,186 $ 284,652
Interest-bearing deposits in
other financial institutions 5,024 4,394
Federal funds sold and
securities purchased under
agreements to resell 23,310 25,120
Securities held to maturity,
at amortized cost 368,558 414,037
Securities available for
sale, at fair value 2,891,647 2,856,346
Loans held for sale 24,593 11,955
Loans 8,913,379 8,343,100
Allowance for loan losses (120,232) (113,196)
--------------- --------------
Loans, net 8,793,147 8,229,904
Premises and equipment 127,600 140,100
Other assets 526,329 553,394
--------------- --------------
Total assets $ 13,128,394 $ 12,519,902
=============== ==============
Liabilities and Stockholders'
Equity
Noninterest-bearing deposits $ 1,243,949 $ 1,103,931
Interest-bearing deposits 8,047,697 7,587,898
--------------- --------------
Total deposits 9,291,646 8,691,829
Short-term borrowings 2,598,203 2,775,090
Long-term debt 122,420 24,283
Accrued expenses and other
liabilities 147,429 118,911
--------------- --------------
Total liabilities 12,159,698 11,610,113
Stockholders' Equity
Preferred stock - -
Common stock 664 634
Surplus 296,479 226,042
Retained earnings 663,566 728,754
Accumulated other
comprehensive income (loss) 15,581 (38,782)
Treasury stock at cost (7,594) (6,859)
--------------- --------------
Total stockholders' equity 968,696 909,789
--------------- --------------
Total liabilities and
stockholders' equity $ 13,128,394 $ 12,519,902
=============== ==============
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The For The
Three Months Ended, Year Ended,
December 31, December 31,
(in thousands, except------------------------ -----------------------
per share amounts) 2000 1999 2000 1999
----------------------------------------------------------------------
Interest Income
Interest and fees on
loans $ 190,404 $ 166,274 $ 726,849 $ 625,529
Interest and
dividends on
investment
securities:
Taxable 40,778 42,101 163,768 163,768
Tax-exempt 10,228 7,305 37,765 23,417
Interest on deposits
in other financial
institutions 140 81 432 454
Interest on federal
funds sold and
securities purchased
under agreements to
resell 644 497 2,343 1,352
---------- ---------- ----------- -----------
Total interest
income 242,194 216,258 931,157 814,520
Interest Expense
Interest on deposits 105,470 82,399 379,892 314,075
Interest on short-
term borrowings 40,466 31,652 160,430 103,057
Interest on long-
term borrowings 1,940 381 7,268 1,643
---------- ---------- ----------- -----------
Total interest
expense 147,876 114,432 547,590 418,775
---------- ---------- ----------- -----------
Net Interest Income 94,318 101,826 383,567 395,745
Provision for loan
losses 5,203 5,704 20,206 19,243
---------- ---------- ----------- -----------
Net interest income
after provision for
loan losses 89,115 96,122 363,361 376,502
Noninterest Income
Trust service fees 8,303 9,500 37,617 37,996
Service charges on
deposit accounts 8,794 8,114 33,296 29,584
Mortgage banking 5,327 5,049 19,944 30,417
Credit card and other
nondeposit fees 6,728 5,776 25,739 20,763
Retail commissions 4,610 4,512 20,187 18,372
Asset sale gains
(losses), net (66) 4,300 24,420 4,977
Investment securities
gains (losses), net (455) (1,536) (7,649) 3,026
Other 10,154 5,708 30,642 20,771
---------- ---------- ----------- -----------
Total noninterest
income 43,395 41,423 184,196 165,906
Noninterest Expense
Personnel expense 39,073 37,399 157,007 151,644
Occupancy 5,709 5,293 23,258 22,576
Equipment 3,665 4,523 15,272 15,987
Data processing 4,675 5,848 22,375 21,695
Business development
and advertising 3,507 2,567 13,359 11,919
Stationery and
supplies 2,168 2,329 7,961 8,110
FDIC expense 458 1,021 1,818 3,313
Other 18,674 16,691 76,686 69,848
---------- ---------- ----------- -----------
Total noninterest
expense 77,929 75,671 317,736 305,092
---------- ---------- ----------- -----------
Income before income
taxes 54,581 61,874 229,821 237,316
Income tax expense 14,880 17,540 61,838 72,373
---------- ---------- ----------- -----------
Net Income $ 39,701 $ 44,334 $ 167,983 $ 164,943
========== ========== =========== ===========
Earnings Per Share:
Basic $ 0.60 $ 0.63 $ 2.46 $ 2.36
Diluted $ 0.60 $ 0.63 $ 2.46 $ 2.34
Average Shares
Outstanding:
Basic 66,314 70,034 68,186 69,858
Diluted 66,542 70,657 68,410 70,468
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands, except
per share data)
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
2000 2000 2000 2000 1999
----------------------------------------------------------------------
Summary of Operations
Interest
income $242,194 $237,892 $228,298 $222,773 $216,258
Interest
expense 147,876 143,354 131,936 124,424 114,432
Net interest
income 94,318 94,538 96,362 98,349 101,826
Provision for
loan losses 5,203 4,122 5,166 5,715 5,704
Net interest income
after provision
for loan
losses 89,115 90,416 91,196 92,634 96,122
Investment securities
losses (455) (2) (5,490) (1,702) (1,536)
Noninterest income
(excluding securities
gains) 43,850 44,371 55,978 47,646 42,959
Noninterest
expense 77,929 80,165 81,031 78,611 75,671
Income taxes 14,880 13,116 16,956 16,886 17,540
Net income 39,701 41,504 43,697 43,081 44,334
Taxable equivalent
adjustment 5,869 5,840 5,321 4,717 4,186
----------------------------------------------------------------------
At Period End
Assets $13,128,394 $13,120,002 $12,998,259 $12,734,620 $12,519,902
Earning
assets 12,226,511 12,223,247 12,069,240 11,877,539 11,654,952
Loans 8,913,379 8,858,665 8,696,417 8,589,984 8,343,100
Allowance for
loan losses 120,232 117,607 115,395 116,297 113,196
Deposits 9,291,646 9,331,316 9,245,391 9,197,784 8,691,829
Stockholders'
equity 968,696 930,183 930,223 920,788 909,789
Stockholders'
equity/assets 7.38% 7.09% 7.16% 7.23% 7.27%
Goodwill and core
deposit
intangibles 106,700 108,885 111,165 113,403 116,622
----------------------------------------------------------------------
Average Balances
Assets $13,086,752 $12,903,544 $12,674,173 $12,572,527 $12,343,729
Earning
assets 12,288,402 12,122,879 11,930,943 11,841,910 11,542,334
Interest-
bearing
liabilities 10,854,175 10,724,729 10,563,782 10,540,529 10,162,673
Loans 8,921,729 8,771,251 8,596,649 8,459,281 8,199,304
Deposits 9,435,473 9,252,903 9,086,902 8,631,256 8,984,366
Stockholders'
equity 931,665 930,256 921,985 896,540 923,207
Stockholders'
equity/
assets 7.12% 7.21% 7.27% 7.13% 7.48%
----------------------------------------------------------------------
Credit Quality
Nonaccrual
loans $ 41,045 $ 39,907 $ 35,155 $ 32,716 $ 32,076
Loans 90 or more
days past due
and still
accruing (1) 6,492 5,520 4,886 4,615 4,690
Restructured
loans 159 23 - 10 148
-------- -------- -------- -------- --------
Total
nonperforming
loans 47,696 45,450 40,041 37,341 36,914
Other real estate
owned (ORE) 4,032 3,710 3,954 3,366 3,740
-------- -------- -------- -------- --------
Total
nonperforming
assets 51,728 49,160 43,995 40,707 40,654
======== ======== ======== ======== ========
Net charge-offs 2,578 1,910 1,852 2,614 3,318
Allowance for loan
losses/loans 1.35% 1.33% 1.33% 1.35% 1.36%
Allowance for loan
losses/nonperforming
assets 232.43 239.23 262.29 285.69 278.44
Allowance for loan
losses/nonperforming
loans 252.08 258.76 288.19 311.45 306.65
Nonperforming
assets/loans
plus ORE 0.58 0.55 0.51 0.47 0.49
Nonperforming
assets/total
assets 0.39 0.37 0.34 0.32 0.32
Net charge-offs/
average loans
(annualized) 0.11 0.09 0.09 0.12 0.16
----------------------------------------------------------------------
Per Common Share Data
Net income:
Basic $ 0.60 $ 0.61 $ 0.63 $ 0.62 $ 0.63
Diluted 0.60 0.61 0.63 0.62 0.63
Cash diluted 0.62 0.64 0.66 0.65 0.66
Dividends 0.2900 0.2900 0.2636 0.2636 0.2636
Market Value:
High $ 30.63 $ 26.63 $ 27.27 $ 30.06 $ 36.70
Low 21.84 22.13 21.81 20.29 30.68
Close 30.38 26.25 21.81 27.16 31.14
Book value 14.65 13.94 13.57 13.30 13.09
Shares outstanding,
end of
period (000) 66,116 66,725 68,536 69,229 69,520
----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest
margin (FTE) 3.20% 3.25% 3.37% 3.46% 3.65%
Return on
average assets 1.21 1.28 1.39 1.38 1.42
Return on average
equity 16.95 17.75 19.06 19.33 19.05
Efficiency
ratio 54.08 56.63 56.03 55.19 52.31
Expense ratio 1.10 1.17 0.84 1.05 1.12
Effective tax
rate 27.26 24.01 27.96 28.16 28.35
Dividend payout
ratio (basic) 48.33 47.54 41.84 42.52 41.84
----------------------------------------------------------------------
Per share data adjusted retroactively for stock splits and stock
dividends.
Cash diluted EPS excludes the after-tax effect of the amortization of
goodwill related intangibles in net income.
Efficiency ratio = Noninterest expense divided by sum of taxable
equivalent net interest income plus noninterest income, excluding
investment securities gain, net, and asset sales gains, net.
(1) - Does not include guaranteed student loans. Guaranteed student
loans 90+ days past due and still accruing totaled $19.5 million as of
December 31, 2000.
Financial Summary and Comparison
Associated Banc-Corp
Three months ended Year ended
December 31, December 31,
-------------------- ----------------------
(in thousands,
except per share data) 2000 1999 %Change 2000 1999 %Change
--------------------- --------------------- ------------------------
Summary of Operations
Interest income $ 242,194 $ 216,258 12.0 $ 931,157 $ 814,520 14.3
Interest expense 147,876 114,432 29.2 547,590 418,775 30.8
Net interest income 94,318 101,826 (7.4) 383,567 395,745 (3.1)
Provision for loan
losses 5,203 5,704 (8.8) 20,206 19,243 5.0
Net interest income
after provision
for loan losses 89,115 96,122 (7.3) 363,361 376,502 (3.5)
Investment securities
gains (losses) (455) (1,536) (70.4) (7,649) 3,026 (352.8)
Noninterest income
(excluding
securities gains) 43,850 42,959 2.1 191,845 162,880 17.8
Noninterest expense 77,929 75,671 3.0 317,736 305,092 4.1
Income taxes 14,880 17,540 (15.2) 61,838 72,373 (14.6)
Net income 39,701 44,334 (10.5) 167,983 164,943 1.8
Taxable equivalent
adjustment 5,869 4,186 40.2 21,747 13,663 59.2
--------------------- ---------------------- ------------------------
At Period End
Assets $13,128,394 $12,519,902 4.9
Earning assets 12,226,511 11,654,952 4.9
Loans 8,913,379 8,343,100 6.8
Allowance for loan losses 120,232 113,196 6.2
Deposits 9,291,646 8,691,829 6.9
Stockholders' equity 968,696 909,789 6.5
--------------------- ---------------------- ------------------------
Average Balances
Assets $13,086,752 $12,343,729 6.0 $12,810,235 $11,698,104 9.5
Earning
assets 12,288,402 11,542,334 6.5 12,046,894 10,954,824 10.0
Interest-bearing
liabilities 10,854,175 10,162,673 6.8 10,671,577 9,661,402 10.5
Loans 8,921,729 8,199,304 8.8 8,688,086 7,801,509 11.4
Deposits 9,435,473 8,984,366 5.0 9,102,940 8,631,652 5.5
Stockholders'
equity 931,665 923,207 0.9 920,169 914,082 0.7
Stockholders'
equity/assets 7.12% 7.48% 7.18% 7.81%
--------------------- ---------------------- ------------------------
Per Common Share Data
Net income:
Basic $ 0.60 $ 0.63 (4.8) $ 2.46 $ 2.36 4.2
Diluted 0.60 0.63 (4.8) 2.46 2.34 5.1
Cash diluted 0.62 0.66 (6.1) 2.57 2.44 5.3
Dividends 0.2900 0.2636 10.0 1.1072 1.0544 5.0
Market Value:
High $ 30.63 $ 36.70 (16.5) $ 30.63 $ 39.15 (21.8)
Low 21.84 30.68 (28.8) 20.29 27.56 (26.4)
Close 30.38 31.14 (2.5) 30.38 31.14 (2.5)
Book value 14.65 13.09 12.0 14.65 13.09 12.0
Shares outstanding,
end of
period (000) 66,116 69,520 (4.9) 66,116 69,520 (4.9)
--------------------- ---------------------- ------------------------
Performance Ratios (annualized)
Net interest
margin (FTE) 3.20% 3.65% 3.36% 3.74%
Return on
average assets 1.21 1.42 1.31 1.41
Return on
average equity 16.95 19.05 18.26 18.04
Efficiency ratio 54.08 52.31 55.48 53.78
Expense ratio 1.10 1.12 1.05 1.30
Effective tax rate 27.26 28.35 26.91 30.50
Dividend payout
ratio (basic) 48.33 41.84 45.01 44.68
------------------ ------------------- --------------------
Per share data adjusted retroactively for stock splits and stock
dividends.
Cash diluted EPS excludes the after-tax effect of the amortization
of goodwill related intangibles in net income.
Efficiency ratio = Noninterest expense divided by sum of taxable
equivalent net interest income plus noninterest income, excluding
investment securities gain, net, and asset sales gains, net.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion