Associated Banc-Corp 4Q Net Income $44.3 Million, Up 17.4 Percent; EPS 69 Cents.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. 20, 2000 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 net income for fourth quarter of 1999 of $44.3 million, up 17.4 percent from $37.8 million for fourth quarter of 1998. On a 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. per share basis, fourth quarter 1999 earnings were 69 cents, up 15.0 percent from 60 cents for the same period in 1998. For the year, Associated reported net income of $164.9, up 5.0% from 1998. 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 were $2.57 for 1999, up 4.5 percent from 1998 earnings of $2.46 per diluted share. Return on average assets and equity for fourth quarter 1999 were 1.42 percent and 19.05 percent, respectively, while the ratios for the comparable 1998 quarter were 1.38 percent and 17.08 percent, respectively. Return on average assets was 1.41 percent for 1999, compared to 1.48 percent for 1998; and return on average equity was 18.04 percent, compared to 18.33 percent in 1998. Associated's net interest margin was 3.65 percent in the fourth quarter of 1999, compared to 3.72 percent in the fourth quarter of 1998. The net interest margin for all of 1999 was 3.74 percent, compared to 3.79 percent for 1998. Associated Banc-Corp Chairman 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. H.B. Conlon Conlon is an Irish family name, the gaelic spelling being Ó Connalláin. It is a variartion of the anglcised version of Ó Connalláin. It is sometimes spelt Conlan, Conlen and Conlin. Like most surnames, it is sometimes used as a first name. said he was encouraged with Associated's progress in 1999 and with the value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. to the company. &uot;1999 was characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by strong competition, narrowing interest rate margins and a drop in secondary mortgage banking income. Associated met these challenges with strong commercial loan growth, quality growth in all fee income categories except mortgage banking, and expense control,&uot; he said. &uot;In addition,&uot; Conlon said, &uot;the company experienced productivity gains and service quality continued to improve. Capital management through the 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. of 2.8 million shares --related to our bank acquisitions, accounted for as purchases -- assisted the company in maintaining a strong return on equity. &uot;In projecting our results for 2000, we expect the competitive and interest rate environment challenges of 1999 will continue into this year. The consensus among analysts' estimates for 2000 are in line with our projections for 2000,&uot; Conlon said. Associated's total assets reached $12.5 billion, up $1.3 billion or 11.3 percent, over 1998. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 50 percent of Associated's growth in 1999 was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the purchases of Windsor Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. Bancshares, Riverside Riverside. 1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. Acquisition Corp and most recently, an asset-based lending Asset-Based Lending A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. Also known as "commercial finance" or "asset-based financing". company acquired from BNCCORP. The remainder came from strong loan growth of 9 percent over year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998. 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 . Associated has more than 200 banking offices and 225 ATMs serving more than 150 communities in 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 , 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 financially related products and services through other Associated affiliates. 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) 1999 1998
------------------------------------------------------------------
Assets
Cash and due from banks $ 284,652 $ 331,532
Interest-bearing deposits in other
financial institutions 4,394 200,467
Federal funds sold and securities
purchased under agreements to resell 25,120 4,485
Securities held to maturity, at
amortized cost 414,037 550,775
Securities available for sale, at fair
value 2,841,498 2,356,960
Loans held for sale 11,955 165,170
Loans 8,357,948 7,272,697
Allowance for loan losses (113,196) (99,677)
------------- -------------
Loans, net 8,244,752 7,173,020
Premises and equipment 140,100 140,142
Other assets 553,394 328,116
------------- -------------
Total assets $ 12,519,902 $ 11,250,667
============= =============
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 1,103,931 $ 998,379
Interest-bearing deposits 7,587,898 7,559,440
------------- -------------
Total deposits 8,691,829 8,557,819
Short-term borrowings 2,775,090 1,671,093
Long-term borrowings 24,283 26,004
Accrued expenses and other liabilities 118,911 117,030
------------- -------------
Total liabilities 11,610,113 10,371,946
Stockholders' Equity
Preferred stock - -
Common stock 634 634
Surplus 226,042 225,757
Retained earnings 728,754 646,071
Accumulated other comprehensive
income (loss) (38,782) 23,369
Treasury stock at cost (6,859) (17,110)
------------- -------------
Total stockholders' equity 909,789 878,721
------------- -------------
Total liabilities and
stockholders' equity $ 12,519,902 $ 11,250,667
============= =============
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months Ended,
December 31,
------------------------------
(in thousands, except per share amounts) 1999 1998
----------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 166,281 $ 148,221
Interest and dividends on investment
securities:
Taxable 42,094 41,929
Tax-exempt 7,305 3,400
Interest on deposits in other
financial institutions 81 237
Interest on federal funds sold and
securities purchased under
agreements to resell 497 535
------------- --------------
Total interest income 216,258 194,322
Interest Expense
Interest on deposits 82,399 84,681
Interest on short-term borrowings 31,652 16,486
Interest on long-term borrowings 381 431
------------- --------------
Total interest expense 114,432 101,598
------------- --------------
Net Interest Income 101,826 92,724
Provision for loan losses 5,704 4,229
------------- --------------
Net interest income after provision for
loan losses 96,122 88,495
Noninterest Income
Trust service fees 9,500 8,851
Service charges on deposit accounts 8,114 7,185
Mortgage banking 5,049 13,470
Credit card and other nondeposit fees 5,776 3,940
Retail commissions 4,512 3,574
Asset sale gains, net 4,300 247
Investment securities gains (losses),
net (1,536) 842
Other 5,708 4,298
------------- --------------
Total noninterest income 41,423 42,407
Noninterest Expense
Salaries and employee benefits 37,399 38,281
Occupancy 5,293 4,902
Equipment 4,523 2,884
Data processing 5,848 5,282
Business development and advertising 2,567 2,608
Stationery and supplies 2,329 2,404
FDIC expense 1,021 794
Other 16,691 21,336
------------- --------------
Total noninterest expense 75,671 78,491
------------- --------------
Income before income taxes 61,874 52,411
Income tax expense 17,540 14,655
------------- --------------
Net Income $ 44,334 $ 37,756
============= ==============
Earnings Per Share:
Basic $ 0.70 $ 0.60
Diluted $ 0.69 $ 0.60
Average Shares Outstanding:
Basic 63,667 62,658
Diluted 64,234 63,209
For The Year Ended,
December 31,
------------------------------
(in thousands, except per share amounts) 1999 1998
----------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 625,565 $ 602,470
Interest and dividends on investment
securities:
Taxable 163,732 168,536
Tax-exempt 23,417 11,280
Interest on deposits in other
financial institutions 454 1,679
Interest on federal funds sold and
securities purchased under
agreements to resell 1,352 1,800
------------- --------------
Total interest income 814,520 785,765
Interest Expense
Interest on deposits 314,075 345,392
Interest on short-term borrowings 103,057 63,774
Interest on long-term borrowings 1,643 1,862
------------- --------------
Total interest expense 418,775 411,028
------------- --------------
Net Interest Income 395,745 374,737
Provision for loan losses 19,243 14,740
------------- --------------
Net interest income after provision for
loan losses 376,502 359,997
Noninterest Income
Trust service fees 37,996 33,328
Service charges on deposit accounts 29,584 27,464
Mortgage banking 30,417 46,105
Credit card and other nondeposit fees 20,763 17,514
Retail commissions 18,372 14,823
Asset sale gains, net 4,977 7,166
Investment securities gains (losses),
net 3,026 6,831
Other 20,771 14,697
------------- --------------
Total noninterest income 165,906 167,928
Noninterest Expense
Salaries and employee benefits 151,644 148,490
Occupancy 22,576 20,205
Equipment 15,987 13,250
Data processing 21,695 18,714
Business development and advertising 11,919 13,177
Stationery and supplies 8,110 6,858
FDIC expense 3,313 3,267
Other 69,848 71,001
------------- --------------
Total noninterest expense 305,092 294,962
------------- --------------
Income before income taxes 237,316 232,963
Income tax expense 72,373 75,943
------------- --------------
Net Income $ 164,943 $ 157,020
============= ==============
Earnings Per Share:
Basic $ 2.60 $ 2.49
Diluted $ 2.57 $ 2.46
Average Shares Outstanding:
Basic 63,507 63,125
Diluted 64,061 63,789
Selected Quarterly Information
Associated Banc-Corp
(in thousands, except per share data)
4th Qtr 1999 3rd Qtr 1999 2nd Qtr 1999
------------ ------------ ------------
Summary of Operations
Interest income $ 216,258 $ 205,185 $ 197,377
Interest expense 114,432 105,615 99,826
Net interest income 101,826 99,570 97,551
Provision for loan losses 5,704 4,541 4,547
Net interest income after
provision for loan loss 96,122 95,029 93,004
Investment securities
gains (losses) (1,536) (50) 1,023
Noninterest income
(excluding securities gains) 42,959 39,438 39,865
Noninterest expense 75,671 74,316 76,521
Income taxes 17,540 18,319 17,495
Net income 44,334 41,782 39,876
Taxable equivalent adjustment 4,186 3,572 3,125
----------------------------------------------------------------------
At Period End
Assets $ 12,519,902 $ 12,324,586 $ 11,622,784
Earning assets 11,654,952 11,438,284 10,850,001
Loans 8,357,948 8,121,683 7,634,576
Allowance for loan losses 113,196 110,241 103,735
Deposits 8,691,829 8,978,532 8,489,686
Stockholders' equity 909,789 931,123 897,206
Stockholders' equity/assets 7.27% 7.56% 7.72%
Goodwill and core
deposit intangibles 116,622 118,680 54,337
----------------------------------------------------------------------
Average Balances
Assets $ 12,343,729 $ 11,830,958 $ 11,443,433
Earning assets 11,542,335 11,070,895 10,708,793
Interest-bearing liabilities 10,162,673 9,786,728 9,462,136
Loans 8,200,595 7,848,876 7,641,973
Deposits 8,984,366 8,730,547 8,430,295
Stockholders' equity 923,207 920,327 906,503
Stockholders' equity/assets 7.48% 7.78% 7.92%
----------------------------------------------------------------------
Credit Quality
Nonaccrual loans $ 32,076 $ 40,330 $ 37,431
Loans 90 or more days
past due and still accruing 4,690 6,539 4,243
Restructured loans 148 840 283
------------ ------------ -----------
Total nonperforming loans 36,914 47,709 41,957
Other real estate owned (ORE) 3,740 4,105 9,759
============ ============ ===========
Total nonperforming assets 40,654 51,814 51,716
============ ============ ===========
Net charge-offs 3,318 3,445 3,876
Allowance for loan
losses/loans 1.35% 1.36% 1.36%
Allowance for loan losses/
nonperforming assets 278.44 212.76 200.59
Allowance for loan losses/
nonperforming loans 306.65 231.07 247.24
Nonperforming assets/
loans plus ORE 0.49 0.64 0.68
Nonperforming assets/
total assets 0.32 0.42 0.44
Net charge-offs/average
loans (annualized) 0.16 0.17 0.20
----------------------------------------------------------------------
Per Common Share Data
Net income:
Basic $ 0.70 $ 0.65 $ 0.63
Diluted 0.69 0.65 0.62
Cash 0.72 0.68 0.65
Dividends 0.2900 0.2900 0.2900
Market Value:
High $ 40.38 $ 41.19 $ 43.06
Low 33.75 35.09 30.81
Close 34.25 36.19 41.50
Book value 14.40 14.54 14.18
Shares outstanding,
end of period (000) 63,200 64,035 63,285
----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE) 3.65% 3.70% 3.74%
Return on average assets 1.42 1.40 1.40
Return on average equity 19.05 18.01 17.64
Efficiency ratio 50.80 52.12 54.45
Expense ratio 1.12 1.25 1.37
Effective tax rate 28.35 30.48 30.49
Dividend payout ratio (basic) 41.43 44.62 46.03
----------------------------------------------------------------------
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.
(1) - Does not include guaranteed student loans. Guaranteed student
loans 90+ days past due and still accruing totaled $16.9 million as of
December 31, 1999.
1st Qtr 1999 4th Qtr 1998
------------ ------------
Summary of Operations
Interest income $ 195,700 $ 194,322
Interest expense 98,902 101,598
Net interest income 96,798 92,724
Provision for loan losses 4,451 4,229
Net interest income after 92,347 88,495
provision for loan loss
Investment securities 3,589 842
gains (losses)
Noninterest income 40,618 41,565
(excluding securities gains)
Noninterest expense 78,584 78,491
Income taxes 19,019 14,655
Net income 38,951 37,756
Taxable equivalent adjustment 2,780 2,003
----------------------------------------------------------------------
At Period End
Assets $ 11,301,816 $ 11,250,667
Earning assets 10,659,971 10,550,554
Loans 7,463,921 7,272,697
Allowance for loan losses 103,064 99,677
Deposits 8,437,635 8,557,819
Stockholders' equity 903,532 878,721
Stockholders' equity/assets 7.99% 7.81%
Goodwill and core deposit intangibles 56,112 40,441
----------------------------------------------------------------------
Average Balances
Assets $ 11,154,012 $ 10,823,063
Earning assets 10,478,239 10,123,573
Interest-bearing liabilities 9,216,896 8,851,990
Loans 7,500,009 7,239,041
Deposits 8,373,924 8,503,982
Stockholders' equity 906,023 877,201
Stockholders' equity/assets 8.12% 8.10%
----------------------------------------------------------------------
Credit Quality
Nonaccrual loans $ 39,749 $ 48,150
Loans 90 or more days past
due and still accruing 5,358 5,252
Restructured loans 776 485
-------------- --------------
Total nonperforming loans 45,883 53,887
Other real estate owned (ORE) 10,568 6,025
-------------- --------------
Total nonperforming assets 56,451 59,912
============== ==============
Net charge-offs 3,101 903
Allowance for loan losses/loans 1.38% 1.37%
Allowance for loan
losses/nonperforming assets 182.57 166.37
Allowance for loan
losses/nonperforming loans 224.62 184.97
Nonperforming assets/loans plus ORE 0.76 0.82
Nonperforming assets/total assets 0.50 0.53
Net charge-offs/average loans (annualized) 0.17 0.05
----------------------------------------------------------------------
Per Common Share Data
Net income:
Basic $ 0.62 $ 0.60
Diluted 0.61 0.60
Cash 0.63 0.62
Dividends 0.2900 0.2900
Market Value:
High $ 35.25 $ 37.00
Low 30.31 26.75
Close 31.94 34.19
Book value 14.27 13.97
Shares outstanding, end of period (000) 63,331 62,887
----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE) 3.78% 3.72%
Return on average assets 1.42 1.38
Return on average equity 17.44 17.08
Efficiency ratio 56.05 57.59
Expense ratio 1.47 1.45
Effective tax rate 32.81 27.96
Dividend payout ratio (basic) 46.77 48.33
----------------------------------------------------------------------
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.
(1) - Does not include guaranteed student loans. Guaranteed student
loans 90+ days past due and still accruing totaled $16.9 million as of
December 31, 1999.
Financial Summary and Comparison
Associated Banc-Corp
Three months ended
December 31,
----------------------------------------------------------------------
(in thousands,
except per share data) 1999 1998 % Change
----------------------------------------------------------------------
Summary of Operations
Interest income $ 216,258 $ 194,322 11.3
Interest expense 114,432 101,598 12.6
Net interest income 101,826 92,724 9.8
Provision for loan losses 5,704 4,229 34.9
Net interest income after
provision for loan
losses 96,122 88,495 8.6
Investment securities
gains (losses) (1,536) 842 (282.4)
Noninterest income
(excluding securities
gains) 42,959 41,565 3.4
Noninterest expense 75,671 78,491 (3.6)
Income taxes 17,540 14,655 19.7
Net income 44,334 37,756 17.4
Taxable equivalent
adjustment 4,186 2,003 109.0
----------------------------------------------------------------------
At Period End
Assets
Earning assets
Loans
Allowance for loan losses
Deposits
Stockholders' equity
----------------------------------------------------------------------
Average Balances
Assets $ 12,343,729 $ 10,823,063 14.1
Earning assets 11,542,335 10,123,573 14.0
Interest-bearing
liabilities 10,162,673 8,851,990 14.8
Loans 8,200,595 7,239,041 13.3
Deposits 8,984,366 8,503,982 5.6
Stockholders' equity 923,207 877,201 5.2
Stockholders' equity/
assets 7.48% 8.10%
----------------------------------------------------------------------
Per Common Share Data
Net income:
Basic $ 0.70 $ 0.60 16.7
Diluted 0.69 0.60 15.0
Cash 0.72 0.62 16.1
Dividends 0.2900 0.2900 -
Market Value:
High $ 40.38 $ 37.00 9.1
Low 33.75 26.75 26.2
Close 34.25 34.19 0.2
Book value 14.40 13.97 3.0
Shares outstanding, end
of period (000) 63,200 62,887 0.5
----------------------------------------------------------------------
Performance Ratios
(annualized)
Net interest margin (FTE) 3.65% 3.72%
Return on average assets 1.42 1.38
Return on average equity 19.05 17.08
Efficiency ratio 50.80 57.59
Expense ratio 1.12 1.45
Effective tax rate 28.35 27.96
Dividend payout ratio 41.43 48.33
Year ended
December 31,
----------------------------------------------------------------------
(in thousands,
except per share data) 1999 1998 % Change
----------------------------------------------------------------------
Summary of Operations
Interest income $ 814,520 $ 785,765 3.7
Interest expense 418,775 411,028 1.9
Net interest income 395,745 374,737 5.6
Provision for loan losses 19,243 14,740 30.5
Net interest income after
provision for loan
losses 376,502 359,997 4.6
Investment securities
gains (losses) 3,026 6,831 (55.7)
Noninterest income
(excluding securities
gains) 162,880 161,097 1.1
Noninterest expense 305,092 294,962 3.4
Income taxes 72,373 75,943 (4.7)
Net income 164,943 157,020 5.0
Taxable equivalent
adjustment 13,663 6,701 103.9
----------------------------------------------------------------------
At Period End
Assets $ 12,519,902 $ 11,250,667 11.3
Earning assets 11,654,952 10,550,554 10.5
Loans 8,357,948 7,272,697 14.9
Allowance for loan losses 113,196 99,677 13.6
Deposits 8,691,829 8,557,819 1.6
Stockholders' equity 909,789 878,721 3.5
----------------------------------------------------------------------
Average Balances
Assets $ 11,698,104 $ 10,628,695 10.1
Earning assets 10,954,824 10,062,182 8.9
Interest-bearing
liabilities 9,661,402 8,791,375 9.9
Loans 7,801,435 7,255,850 7.5
Deposits 8,631,652 8,430,701 2.4
Stockholders' equity 914,082 856,425 6.7
Stockholders' equity/
assets 7.81% 8.06%
----------------------------------------------------------------------
Per Common Share Data
Net income:
Basic $ 2.60 $ 2.49 4.4
Diluted 2.57 2.46 4.5
Cash 2.68 2.53 5.9
Dividends 1.1600 1.0440 11.1
Market Value:
High $ 43.06 $ 43.80 (1.7)
Low 30.31 26.75 13.3
Close 34.25 34.19 0.2
Book value 14.40 13.97 3.0
Shares outstanding, end
of period (000) 63,200 62,887 0.5
----------------------------------------------------------------------
Performance Ratios
(annualized)
Net interest margin (FTE) 3.74% 3.79%
Return on average assets 1.41 1.48
Return on average equity 18.04 18.33
Efficiency ratio 53.31 54.37
Expense ratio 1.30 1.33
Effective tax rate 30.50 32.60
Dividend payout ratio 44.62 41.93
----------------------------------------------------------------------
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.
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