Associated Banc-Corp Earns $2.43 Per Share in 2005 and 64 Cents in Fourth Quarter 2005.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. . -- 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 ): --Fourth quarter EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. grew 12 percent over comparable quarter last year --Credit quality remains strong --Fourth quarter margin improves slightly as wholesale funding is reduced --State Financial successfully integrated Associated Banc-Corp (NASDAQ:ASBC) earned $0.64 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 in the fourth quarter of 2005, up 12 percent from $0.57 per share earned in the fourth quarter of 2004, and up from $0.63 per share in the third quarter of 2005. Net income for the fourth quarter 2005 was $87.6 million, up 24 percent from the fourth quarter 2004 net income of $70.9 million, and up 8 percent over third quarter 2005 net income of $81.0 million. Associated earned $2.43 per diluted share in 2005, up 8 percent from 2004. Net income for 2005 was $320.2 million, up 24 percent from $258.3 million in 2004. Associated's acquisition of First Federal Capital Corp, a $4 billion thrift thrift: see leadwort. , on Oct. 29, 2004, and of State 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. Corp, a $1.5 billion commercial bank, on Oct. 3, 2005, affect comparisons to past periods. Return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) and return on average 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 the year ended Dec. 31, 2005, were 1.53 percent and 15.24 percent, respectively. This compares to an ROA of 1.58 percent and an ROE of 17.22 percent in 2004. Return on average tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. equity (which is a non-GAAP measure that excludes the average of goodwill and other 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. from average equity) was 23.47 percent for 2005 compared to 22.11 percent in 2004. Book value per share rose to $17.15 as of Dec. 31, 2005, up 10 percent compared to a year earlier. Period-end loans at Dec. 31, 2005, were $15.2 billion, up 10 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. 2004. Deposits at year-end 2005 were $13.6 billion, up 6 percent over the prior year end. "The integrations of First Federal and State Financial in 2005 have strengthened our position in attractive markets. We look forward to delivering on this potential in 2006," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. S. Beideman, Associated 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. . In 2005 net charge-offs were $12.7 million (or .09 percent of average loans), compared to $17.3 million (or 0.15 percent of average loans) in 2004. Nonperforming loans at Dec. 31, 2005, totaled $98.6 million, or 0.65 percent of loans, compared to $115.0 million, or 0.83 percent of loans, a year ago. The provision for loan losses for 2005 was $13.0 million, compared to $14.7 million for 2004. The allowance for loan losses at Dec. 31, 2005, was $203.4 million, representing 1.34 percent of total loans, and 206 percent of nonperforming loans. In comparison, the allowance was $189.8 million, or 1.37 percent of total loans, and 165 percent of nonperforming loans at Dec. 31, 2004. Associated's net interest income for 2005 was $672.3 million, up 22 percent from 2004's $552.6 million. Net interest margin for 2005 was 3.64 percent, compared to 3.80 percent for 2004. While the Federal Reserve raised short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. rates eight times in 2005, longer-term rates did not rise commensurately com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. , causing a flattening of the yield curve Flattening of the yield curve A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift. and downward pressure on the margin in 2005. For the fourth quarter of 2005, net interest income was $175.6 million, up $11.5 million or 7 percent over the third quarter of 2005. The net interest margins were 3.59 percent for the fourth quarter versus 3.56 percent in the third quarter. Fourth quarter 2005 results include State Financial as well as impacts from the company's wholesale funding reduction strategy described last quarter. "In the fourth quarter we have made significant progress in reducing our level of borrowed funds. As we fully implement this initiative our net interest margin and overall quality of earnings will continue to improve," said Beideman. During the fourth quarter of 2005, excluding the State Financial acquisition, investments were reduced by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $430 million, deposit growth exceeded loan growth by approximately $230 million, and wholesale funding declined by $620 million. Additionally, in November November: see month. , under an accelerated share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, the company repurchased approximately 1 million shares of its common stock. Noninterest income for 2005 was $291.1 million, up 38 percent from $210.2 million in 2004. Annual growth occurred in trust service fees (up 10 percent to $35.0 million) driven by growth in new business; service charges on deposits (up 55 percent to $86.8 million) given our larger customer base; retail commissions (up 20 percent to $56.6 million) predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. from insurance revenues; and in mortgage banking, net (up 79 percent to $36.4 million), influenced by an average portfolio serviced for others of $9.3 billion in 2005 versus $6.5 billion in 2004, and by secondary mortgage production of $1.58 billion in 2005 versus $1.62 billion in 2004. Mortgage banking, net, for the fourth quarter of 2005 was $12.2 million, similar to $12.0 million for the third quarter of 2005, but the results stem from different dynamics. Secondary mortgage production for fourth quarter was $356 million, representing approximately 71 percent of the production for the third quarter. To better manage earnings volatility risks Volatility risk The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. in its growing mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. portfolio, Associated sold approximately $1.5 billion (or 16 percent) of its mortgage portfolio serviced for others, effective Nov. 30. And finally, the valuation of the mortgage servicing asset stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. between the quarters. The impact of these dynamics on fourth quarter versus third quarter 2005 results was a $3.1 million increase in gross mortgage banking income, which included a $5.3 million gain on the bulk servicing sale, offset by $2.9 million in higher mortgage servicing rights expense, including valuation recoveries of $1.3 million in the fourth quarter versus $4.5 million in the third quarter. Noninterest income for the fourth quarter of 2005 was $81.0 million, up $4.1 million or 5 percent over third quarter 2005, as the fourth quarter included three months of State Financial and the third quarter included none. Noninterest expenses were a critical focus during 2005 as the company integrated two acquisitions and refined certain operational structures. Noninterest expense for 2005 was $480.5 million, up 27 percent from $377.9 million in 2004, given the timing of the acquisitions. However, the efficiency ratio (a measure of noninterest expense to total revenues) remained steady at 48.99 percent for 2005 compared to 48.04 percent for 2004. Noninterest expense for the fourth quarter of 2005 was $125.5 million, up $8.2 million or 7 percent over the third quarter of 2005, as State Financial was added at the start of the fourth quarter. "We enter 2006 with a stronger distribution system in attractive markets, more effective sales and marketing, solid asset quality, and a more efficient organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. . This progress makes us confident in our ability to achieve our strategic priorities," Beideman said. "In addition, our balance sheet deleveraging initiative is on track and producing the desired result. "We are comfortable that we can meet or exceed the current First Call consensus EPS estimates for Associated in 2006," he said. "The effect of expensing of stock options, a required accounting change in 2006, is estimated to be less than $2 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta for options granted to date, as options granted in January January: see month. and December December: see month. 2005 are fully vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) by year end 2005." The company paid dividends of $1.06 per share in 2005, up 9 percent from $0.98 in 2004, making 2005 Associated's 35th consecutive year of increasing dividends. Associated repurchased approximately 3.5 million shares of its common stock in 2005 at an average cost of $32.43 per share (including the two accelerated share repurchases during 2005 totaling approximately 3 million shares), compared to 1.1 million shares at an average cost per share of $30.43 during 2004. Associated starts 2006 with an authorization The right or permission to use a system resource; the process of granting access. See access control. 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. approximately 2.6 million shares. Associated will host a conference call for investors and analysts at 3 p.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. today. The toll-free dial-in number is 877-654-5513. Participants should ask the operator for the Associated Banc-Corp year-end earnings call, or for call ID number 4359258. A taped play-back of the call will be available through Feb. 2 by calling 800-642-1687. 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 $22 billion. Associated has more than 300 banking offices serving more than 170 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 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 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. , as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. .
----------------------------------------------------------------------
Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
December 31, December 31,
(in thousands) 2005 2004 % Change
----------------------------------------------------------------------
Assets
Cash and due from banks $ 460,230 $ 389,311 18.2%
Interest-bearing deposits in other
financial institutions 14,254 13,321 7.0%
Federal funds sold and securities
purchased under agreements
to resell 17,811 55,440 (67.9%)
Securities available for sale, at
fair value 4,711,605 4,815,344 (2.2%)
Loans held for sale 57,710 64,964 (11.2%)
Loans 15,206,464 13,881,887 9.5%
Allowance for loan losses (203,404) (189,762) 7.2%
------------ ------------
Loans, net 15,003,060 13,692,125 9.6%
Premises and equipment 206,153 184,944 11.5%
Goodwill 877,680 679,993 29.1%
Intangible assets 120,358 119,440 0.8%
Other assets 631,221 505,254 24.9%
------------ ------------
Total assets $22,100,082 $20,520,136 7.7%
============ ============
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 2,504,926 $ 2,347,611 6.7%
Interest-bearing deposits,
excluding Brokered CDs 10,538,856 10,077,069 4.6%
Brokered CDs 529,307 361,559 46.4%
------------ ------------
Total deposits 13,573,089 12,786,239 6.2%
Short-term borrowings 2,666,307 2,926,716 (8.9%)
Long-term funding 3,348,476 2,604,540 28.6%
Accrued expenses and other
liabilities 187,232 185,222 1.1%
------------ ------------
Total liabilities 19,775,104 18,502,717 6.9%
Stockholders' Equity
Preferred stock - -
Common stock 1,357 1,300 4.4%
Surplus 1,301,004 1,127,205 15.4%
Retained earnings 1,029,247 858,847 19.8%
Accumulated other comprehensive
income (loss) (3,938) 41,205 (109.6%)
Deferred compensation (2,081) (2,122) (1.9%)
Treasury stock, at cost (611) (9,016) (93.2%)
------------ ------------
Total stockholders' equity 2,324,978 2,017,419 15.2%
------------ ------------
Total liabilities and
stockholders' equity $22,100,082 $20,520,136 7.7%
============ ============
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months Ended,
December 31,
---------------------------
(in thousands, except
per share amounts) 2005 2004 % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 252,443 $ 179,612 40.5%
Interest and dividends on
investment securities
and deposits with other
financial institutions
Taxable 41,486 37,631 10.2%
Tax-exempt 10,325 10,047 2.8%
Interest on federal funds sold
and securities purchased under
agreements to resell 289 260 11.2%
------------- -------------
Total interest income 304,543 227,550 33.8%
Interest Expense
Interest on deposits 66,934 36,835 81.7%
Interest on short-term borrowings 26,828 14,898 80.1%
Interest on long-term funding 35,186 17,360 102.7%
------------- -------------
Total interest expense 128,948 69,093 86.6%
------------- -------------
Net Interest Income 175,595 158,457 10.8%
Provision for loan losses 3,676 3,603 2.0%
------------- -------------
Net interest income after
provision for loan losses 171,919 154,854 11.0%
Noninterest Income
Trust service fees 9,055 8,107 11.7%
Service charges on deposit
accounts 23,073 16,943 36.2%
Mortgage banking, net 12,166 6,046 101.2%
Credit card and other nondeposit
fees 10,033 8,183 22.6%
Retail commissions 13,624 12,727 7.0%
Bank owned life insurance income 3,022 2,525 19.7%
Asset sale gains, net 2,766 432 N/M
Investment securities gains
(losses), net 1,179 (719) N/M
Other 6,126 4,793 27.8%
------------- -------------
Total noninterest income 81,044 59,037 37.3%
Noninterest Expense
Personnel expense 68,619 65,193 5.3%
Occupancy 10,287 8,297 24.0%
Equipment 4,361 3,855 13.1%
Data processing 7,240 5,966 21.4%
Business development and
advertising 4,999 4,271 17.0%
Stationery and supplies 1,869 1,567 19.3%
Other intangible amortization 2,418 1,699 42.3%
Other 25,746 19,119 34.7%
------------- -------------
Total noninterest expense 125,539 109,967 14.2%
------------- -------------
Income before income taxes 127,424 103,924 22.6%
Income tax expense 39,783 33,069 20.3%
------------- -------------
Net Income $ 87,641 $ 70,855 23.7%
============= =============
Earnings Per Share:
Basic $ 0.65 $ 0.57 14.0%
Diluted $ 0.64 $ 0.57 12.3%
Average Shares Outstanding:
Basic 135,684 123,509 9.9%
Diluted 137,005 125,296 9.3%
N/M - Not meaningful.
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Year Ended,
December 31,
---------------------------
(in thousands, except
per share amounts) 2005 2004 % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 889,374 $ 594,702 49.5%
Interest and dividends on
investment securities
and deposits with other
financial institutions
Taxable 164,404 131,020 25.5%
Tax-exempt 39,310 40,804 (3.7%)
Interest on federal funds sold
and securities purchased under
agreements to resell 937 596 57.2%
------------- -------------
Total interest income 1,094,025 767,122 42.6%
Interest Expense
Interest on deposits 213,052 118,236 80.2%
Interest on short-term borrowings 89,356 38,940 129.5%
Interest on long-term funding 119,362 57,319 108.2%
------------- -------------
Total interest expense 421,770 214,495 96.6%
------------- -------------
Net Interest Income 672,255 552,627 21.6%
Provision for loan losses 13,019 14,668 (11.2%)
------------- -------------
Net interest income after
provision for loan losses 659,236 537,959 22.5%
Noninterest Income
Trust service fees 35,017 31,791 10.1%
Service charges on deposit
accounts 86,783 56,153 54.5%
Mortgage banking, net 36,395 20,331 79.0%
Credit card and other nondeposit
fees 37,439 26,181 43.0%
Retail commissions 56,604 47,171 20.0%
Bank owned life insurance income 9,942 13,101 (24.1%)
Asset sale gains, net 3,945 1,181 N/M
Investment securities gains
(losses), net 4,116 637 N/M
Other 20,845 13,701 52.1%
------------- -------------
Total noninterest income 291,086 210,247 38.4%
Noninterest Expense
Personnel expense 274,941 224,548 22.4%
Occupancy 38,961 29,572 31.7%
Equipment 16,792 12,754 31.7%
Data processing 27,390 23,632 15.9%
Business development and
advertising 17,661 14,975 17.9%
Stationery and supplies 6,956 5,436 28.0%
Other intangible amortization 8,607 4,350 97.9%
Other 89,155 62,602 42.4%
------------- -------------
Total noninterest expense 480,463 377,869 27.2%
------------- -------------
Income before income taxes 469,859 370,337 26.9%
Income tax expense 149,698 112,051 33.6%
------------- -------------
Net Income $ 320,161 $ 258,286 24.0%
============= =============
Earnings Per Share:
Basic $ 2.45 $ 2.28 7.5%
Diluted $ 2.43 $ 2.25 8.0%
Average Shares Outstanding:
Basic 130,554 113,532 15.0%
Diluted 131,931 115,025 14.7%
N/M - Not meaningful.
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited) - Quarterly Trend
Associated Banc-Corp
(in thousands,
except per share
amounts) 4Q05 3Q05 2Q05 1Q05 4Q04
----------------------------------------------------------------------
Interest Income
Interest and fees on
loans $252,443 $223,202 $213,420 $200,309 $179,612
Interest and
dividends on
investment
securities
and deposits in
other financial
institutions
Taxable 41,486 40,050 41,834 41,034 37,631
Tax-exempt 10,325 9,755 9,507 9,723 10,047
Interest on federal
funds sold and
securities
purchased under
agreements to
resell 289 384 182 82 260
--------- --------- --------- --------- ---------
Total interest
income 304,543 273,391 264,943 251,148 227,550
Interest Expense
Interest on deposits 66,934 53,598 48,087 44,433 36,835
Interest on
short-term
borrowings 26,828 23,628 21,731 17,169 14,898
Interest on
long-term
funding 35,186 32,087 28,451 23,638 17,360
--------- --------- --------- --------- ---------
Total interest
expense 128,948 109,313 98,269 85,240 69,093
--------- --------- --------- --------- ---------
Net Interest Income 175,595 164,078 166,674 165,908 158,457
Provision for loan
losses 3,676 3,345 3,671 2,327 3,603
--------- --------- --------- --------- ---------
Net interest income
after provision for
loan losses 171,919 160,733 163,003 163,581 154,854
Noninterest Income
Trust service fees 9,055 8,667 8,967 8,328 8,107
Service charges on
deposit accounts 23,073 22,830 22,215 18,665 16,943
Mortgage banking, net 12,166 11,969 2,376 9,884 6,046
Credit card and
other nondeposit
fees 10,033 9,505 8,790 9,111 8,183
Retail commissions 13,624 12,905 15,370 14,705 12,727
Bank owned life
insurance income 3,022 2,441 2,311 2,168 2,525
Asset sale gains
(losses), net 2,766 942 539 (302) 432
Investment
securities gains
(losses), net 1,179 1,446 1,491 - (719)
Other 6,126 6,260 (355) 8,814 4,793
--------- --------- --------- --------- ---------
Total
noninterest
income 81,044 76,965 61,704 71,373 59,037
Noninterest Expense
Personnel expense 68,619 66,403 66,934 72,985 65,193
Occupancy 10,287 9,412 9,374 9,888 8,297
Equipment 4,361 4,199 4,214 4,018 3,855
Data processing 7,240 7,129 6,728 6,293 5,966
Business development
and advertising 4,999 4,570 4,153 3,939 4,271
Stationery and
supplies 1,869 1,599 1,644 1,844 1,567
Other intangible
amortization 2,418 1,903 2,292 1,994 1,699
Other 25,746 22,133 20,995 20,281 19,119
--------- --------- --------- --------- ---------
Total
noninterest
expense 125,539 117,348 116,334 121,242 109,967
--------- --------- --------- --------- ---------
Income before income
taxes 127,424 120,350 108,373 113,712 103,924
Income tax expense 39,783 39,315 34,358 36,242 33,069
--------- --------- --------- --------- ---------
Net Income $ 87,641 $ 81,035 $ 74,015 $ 77,470 $ 70,855
========= ========= ========= ========= =========
Earnings Per Share:
Basic $ 0.65 $ 0.63 $ 0.57 $ 0.60 $ 0.57
Diluted $ 0.64 $ 0.63 $ 0.57 $ 0.59 $ 0.57
Average Shares
Outstanding:
Basic 135,684 127,875 128,990 129,781 123,509
Diluted 137,005 129,346 130,463 131,358 125,296
----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands,
except per share
& full time
equivalent
employee data) YTD 2005 YTD 2004 4th Qtr 2005 3rd Qtr 2005
----------------------------------------------------------------------
Summary of Operations
Net interest
income 672,255 552,627 175,595 164,078
Provision for
loan losses 13,019 14,668 3,676 3,345
Asset sale gains
(losses), net 3,945 1,181 2,766 942
Investment
securities gains
(losses), net 4,116 637 1,179 1,446
Noninterest
income
(excluding
securities &
asset gains) 283,025 208,429 77,099 74,577
Noninterest
expense 480,463 377,869 125,539 117,348
Income before
income taxes 469,859 370,337 127,424 120,350
Income taxes 149,698 112,051 39,783 39,315
Net income 320,161 258,286 87,641 81,035
Taxable
equivalent
adjustment 25,509 25,528 6,766 6,347
----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
Basic $ 2.45 $ 2.28 $ 0.65 $ 0.63
Diluted 2.43 2.25 0.64 0.63
Dividends 1.0600 0.9767 0.2700 0.2700
Market Value:
High $ 34.74 $ 34.85 $ 33.23 $ 34.74
Low 29.09 27.09 29.09 30.29
Close 32.55 33.23 32.55 30.48
Book value 17.15 15.56 17.15 16.12
----------------------------------------------------------------------
Performance Ratios (annualized)
Earning assets
yield 5.84% 5.21% 6.12% 5.83%
Interest-bearing
liabilities rate 2.57 1.67 2.98 2.66
Net interest
margin 3.64 3.80 3.59 3.56
Return on average
assets 1.53 1.58 1.58 1.56
Return on average
equity 15.24 17.22 14.99 15.85
Return on
tangible average
equity (2) 23.47 22.11 22.70 24.55
Efficiency ratio (3) 48.99 48.04 48.38 47.90
Effective tax
rate 31.86 30.26 31.22 32.67
Dividend payout
ratio (4) 43.27 42.84 41.54 42.86
----------------------------------------------------------------------
Average Balances
Assets $20,921,575 $16,365,762 $22,022,165 $20,607,901
Earning assets 19,181,630 15,202,928 20,080,758 18,960,035
Interest-bearing
liabilities 16,410,899 12,868,370 17,090,134 16,198,492
Loans 14,347,707 11,174,856 15,154,225 14,163,827
Deposits 12,462,981 10,144,528 13,282,910 12,133,719
Stockholders'
equity 2,101,389 1,499,606 2,320,134 2,027,785
Stockholders'
equity / assets 10.04% 9.16% 10.54% 9.84%
----------------------------------------------------------------------
At Period End
Assets $22,100,082 $20,741,731
Loans 15,206,464 14,107,137
Allowance for
loan losses 203,404 190,080
Goodwill 877,680 679,993
Mortgage
servicing
rights, net 68,841 78,688
Other intangible
assets 51,517 37,004
Deposits 13,573,089 12,181,025
Stockholders'
equity 2,324,978 2,062,565
Stockholders'
equity / assets 10.52% 9.94%
Tangible equity /
tangible assets (5) 6.59% 6.72%
Shares outstanding,
end of period 135,602 127,985
Shares repurchased
during period 974 -
Average per share
cost of shares
repurchased
during period $ 30.82 $ -
Year-to-date
shares repurchased
during period 3,496 2,522
YTD average per
share cost of
shares
repurchased
during period $ 32.43 $ 33.05
----------------------------------------------------------------------
Selected trend information
Average full time
equivalent
employees 5,113 4,815
Trust assets
under management,
at market value $ 5,000,000 $ 4,900,000
Mortgage loans
originated for
sale 356,280 498,343
Portfolio
serviced for
others 8,028,000 9,492,000
Mortgage
servicing
rights, net /
Portfolio
serviced for
others 0.86% 0.83%
----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands, except per share
& full time equivalent
employee data) 2nd Qtr 2005 1st Qtr 2005 4th Qtr 2004
----------------------------------------------------------------------
Summary of Operations
Net interest income 166,674 165,908 158,457
Provision for loan losses 3,671 2,327 3,603
Asset sale gains (losses), net 539 (302) 432
Investment securities gains
(losses), net 1,491 - (719)
Noninterest income (excluding
securities & asset gains) 59,674 71,675 59,324
Noninterest expense 116,334 121,242 109,967
Income before income taxes 108,373 113,712 103,924
Income taxes 34,358 36,242 33,069
Net income 74,015 77,470 70,855
Taxable equivalent adjustment 6,174 6,222 6,342
----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
Basic $ 0.57 $ 0.60 $ 0.57
Diluted 0.57 0.59 0.57
Dividends 0.2700 0.2500 0.2500
Market Value:
High $ 33.89 $ 33.50 $ 34.85
Low 30.11 30.60 32.08
Close 33.58 31.23 33.23
Book value 15.80 15.62 15.56
----------------------------------------------------------------------
Performance Ratios (annualized)
Earning assets yield 5.71% 5.51% 5.31%
Interest-bearing liabilities rate 2.42 2.13 1.85
Net interest margin 3.63 3.68 3.74
Return on average assets 1.44 1.54 1.49
Return on average equity 14.62 15.52 15.46
Return on tangible average
equity (2) 22.65 24.13 22.47
Efficiency ratio (3) 50.03 49.73 49.07
Effective tax rate 31.70 31.87 31.82
Dividend payout ratio (4) 47.37 41.67 43.86
----------------------------------------------------------------------
Average Balances
Assets $20,574,770 $20,467,698 $18,956,445
Earning assets 18,916,921 18,756,555 17,437,618
Interest-bearing liabilities 16,207,719 16,139,002 14,761,878
Loans 14,084,246 13,977,621 12,858,394
Deposits 12,069,719 12,359,040 11,658,646
Stockholders' equity 2,030,929 2,024,265 1,822,715
Stockholders' equity / assets 9.87% 9.89% 9.62%
----------------------------------------------------------------------
At Period End
Assets $20,753,714 $20,502,442 $20,520,136
Loans 14,054,506 13,923,196 13,881,887
Allowance for loan losses 190,024 189,917 189,762
Goodwill 679,993 679,993 679,993
Mortgage servicing rights, net 74,103 78,182 76,247
Other intangible assets 38,907 41,199 43,193
Deposits 12,098,631 12,193,904 12,786,239
Stockholders' equity 2,018,435 2,025,071 2,017,419
Stockholders' equity / assets 9.73% 9.88% 9.83%
Tangible equity / tangible
assets (5) 6.49% 6.59% 6.54%
Shares outstanding, end of
period 127,743 129,622 129,695
Shares repurchased during
period 2,111 411 376
Average per share cost of
shares repurchased during
period $33.10 $32.76 $33.25
Year-to-date shares repurchased
during period 2,522 411 1,073
YTD average per share cost of
shares repurchased during
period $ 33.05 $ 32.76 $ 30.43
----------------------------------------------------------------------
Selected trend information
Average full time equivalent
employees 4,889 5,132 4,746
Trust assets under management,
at market value $4,800,000 $4,700,000 $4,600,000
Mortgage loans originated for
sale 385,677 337,406 427,951
Portfolio serviced for others 9,479,000 9,528,000 9,543,000
Mortgage servicing rights, net
/ Portfolio serviced for
others 0.78% 0.82% 0.80%
----------------------------------------------------------------------
(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.
(5) Tangible equity to tangible assets = Stockholders' equity
excluding goodwill and other intangible assets divided by assets
excluding goodwill and other intangible assets. This is a non-GAAP
financial measure.
----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp Three months ended
December 31,
-----------------------------
(in thousands) 2005 2004 % Change
---------------------------------------- -----------------------------
Allowance for Loan Losses
Beginning balance $190,080 $175,007 8.6%
Balance related to acquisition 13,283 14,750 (9.9%)
Provision for loan losses 3,676 3,603 2.0%
Charge offs (11,142) (5,710) 95.1%
Recoveries 7,507 2,112 255.4%
-------------------
Net charge offs (3,635) (3,598) 1.0%
-------------------
Ending Balance $203,404 $189,762 7.2%
===================
Financial Summary and Comparison
Year ended
December 31,
-----------------------------
(in thousands) 2005 2004 % Change
---------------------------------------- -----------------------------
Allowance for Loan Losses
Beginning balance $189,762 $177,622 6.8%
Balance related to acquisition 13,283 14,750 (9.9%)
Provision for loan losses 13,019 14,668 (11.2%)
Charge offs (27,743) (22,202) 25.0%
Recoveries 15,083 4,924 206.3%
-------------------
Net charge offs (12,660) (17,278) (26.7%)
-------------------
Ending Balance $203,404 $189,762 7.2%
===================
----------------------------------------------------------------------
Credit Quality
4Q05 vs
Dec 31, Sept 30, 3Q05
2005 2005 % Change
-----------------------------
Nonaccrual loans $ 95,313 $107,298 (11.2%)
Loans 90 or more days past due
and still accruing 3,270 3,354 (2.5%)
Restructured loans 32 33 (3.0%)
-------------------
Total nonperforming loans 98,615 110,685 (10.9%)
Other real estate owned 11,336 10,017 13.2%
-------------------
Total nonperforming assets 109,951 120,702 (8.9%)
===================
Provision for loan losses 3,676 3,345 9.9%
Net charge offs 3,635 3,289 10.5%
Allowance for loan losses /
loans 1.34% 1.35%
Allowance for loan losses /
nonperforming loans 206.26 171.73
Nonperforming loans / total
loans 0.65 0.78
Nonperforming assets / total
assets 0.50 0.58
Net charge offs / average loans
(annualized) 0.10 0.09
Year-to-date net charge offs /
average loans 0.09 0.09
Credit Quality
4Q05 vs
June 30, Mar 31, Dec 31, 4Q04
2005 2005 2004 % Change
--------- -------- --------- ---------
Nonaccrual loans $109,698 $ 99,835 $112,761 (15.5%)
Loans 90 or more days past due
and still accruing 2,806 3,068 2,153 51.9%
Restructured loans 35 36 37 (13.5%)
--------- -------- ---------
Total nonperforming loans 112,539 102,939 114,951 (14.2%)
Other real estate owned 3,685 4,019 3,915 189.6%
--------- -------- ---------
Total nonperforming assets 116,224 106,958 118,866 (7.5%)
========= ======== =========
Provision for loan losses 3,671 2,327 3,603 2.0%
Net charge offs 3,564 2,172 3,598 1.0%
Allowance for loan losses /
loans 1.35% 1.36% 1.37%
Allowance for loan losses /
nonperforming loans 168.85 184.49 165.08
Nonperforming loans / total
loans 0.80 0.74 0.83
Nonperforming assets / total
assets 0.56 0.52 0.58
Net charge offs / average loans
(annualized) 0.10 0.06 0.11
Year-to-date net charge offs /
average loans 0.08 0.06 0.15
----------------------------------------------------------------------
Period End Loan 4Q05 vs
Composition 3Q05
Dec 31, 2005 Sept 30, 2005 % Change
--------------------------------------
Commercial, financial
& agricultural $ 3,417,343 $ 3,213,656 6.3%
Real estate -
construction 1,783,267 1,519,681 17.3%
Commercial real
estate 4,064,327 3,648,169 11.4%
Lease financing 61,315 57,270 7.1%
--------------------------
Commercial 9,326,252 8,438,776 10.5%
Home equity (a) 2,025,055 1,878,436 7.8%
Installment 1,003,938 1,024,356 (2.0%)
--------------------------
Retail 3,028,993 2,902,792 4.3%
Residential
mortgage 2,851,219 2,765,569 3.1%
--------------------------
Total loans $15,206,464 $14,107,137 7.8%
==========================
Period End Loan
Composition 4Q05 vs
4Q04
June 30, 2005 Mar 31, 2005 Dec 31, 2004 % Change
-------------------------------------------------
Commercial, financial
& agricultural $ 3,086,663 $ 2,852,462 $ 2,803,333 21.9%
Real estate -
construction 1,640,941 1,569,013 1,459,629 22.2%
Commercial real
estate 3,650,726 3,813,465 3,933,131 3.3%
Lease financing 53,270 50,181 50,718 20.9%
--------------------------------------
Commercial 8,431,600 8,285,121 8,246,811 13.1%
Home equity (a) 1,806,236 1,744,676 1,866,485 8.5%
Installment 1,025,621 1,048,510 1,054,011 (4.8%)
--------------------------------------
Retail 2,831,857 2,793,186 2,920,496 3.7%
Residential
mortgage 2,791,049 2,844,889 2,714,580 5.0%
--------------------------------------
Total loans $14,054,506 $13,923,196 $13,881,887 9.5%
======================================
(a) Home equity includes home equity lines and residential mortgage
junior liens.
----------------------------------------------------------------------
Period End Deposit 4Q05 vs
Composition 3Q05
Dec 31, 2005 Sept 30, 2005 % Change
---------------------------------------
Noninterest-bearing
demand $ 2,504,926 $ 2,256,774 11.0%
Savings 1,079,851 1,074,234 0.5%
Interest-bearing
demand 2,549,782 2,252,711 13.2%
Money market 2,629,933 2,240,606 17.4%
Brokered CDs 529,307 407,459 29.9%
Other time deposits 4,279,290 3,949,241 8.4%
---------------------------
Total deposits $13,573,089 $12,181,025 11.4%
===========================
Period End Deposit
Composition
4Q05 vs
4Q04
June 30, 2005 Mar 31, 2005 Dec 31, 2004 % Change
--------------------------------------------------
Noninterest-bearing
demand $ 2,250,482 $ 2,156,592 $ 2,347,611 6.7%
Savings 1,117,922 1,137,120 1,116,158 (3.3%)
Interest-bearing
demand 2,227,188 2,485,548 2,854,880 (10.7%)
Money market 2,094,796 2,112,490 2,083,717 26.2%
Brokered CDs 491,781 218,111 361,559 46.4%
Other time deposits 3,916,462 4,084,043 4,022,314 6.4%
--------------------------------------
Total deposits $12,098,631 $12,193,904 $12,786,239 6.2%
======================================
----------------------------------------------------------------------
Net Interest Income Analysis -
Taxable Equivalent Basis
Associated Banc-Corp Year ended December 31, 2005
--------------------------------
Interest Average
(in thousands) Average Income / Yield /
Balance Expense Rate
--------------------------------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 8,574,996 $ 532,116 6.21%
Residential mortgage 2,875,438 161,095 5.60
Retail 2,897,273 198,086 6.84
-----------------------
Total loans 14,347,707 891,297 6.21
Investments and other 4,833,923 228,237 4.72
-----------------------
Total earning assets 19,181,630 1,119,534 5.84
Other assets, net 1,739,945
------------
Total assets $20,921,575
============
Interest-bearing liabilities:
Savings deposits $1,125,417 $3,877 0.34%
Interest-bearing demand deposits 2,337,462 26,611 1.14
Money market deposits 2,262,369 45,626 2.02
Time deposits, excluding Brokered
CDs 4,083,500 123,550 3.03
-----------------------
Total interest-bearing deposits,
excluding Brokered CDs 9,808,748 199,664 2.04
Brokered CDs 394,305 13,388 3.40
-----------------------
Total interest-bearing deposits 10,203,053 213,052 2.09
Wholesale funding 6,207,846 208,718 3.36
-----------------------
Total interest-bearing liabilities 16,410,899 421,770 2.57
Noninterest-bearing demand 2,259,928
Other liabilities 149,359
Stockholders' equity 2,101,389
------------
Total liabilities and stockholders'
equity $20,921,575
============
----------
Net interest income and rate spread (1) $ 697,764 3.27%
==========
Net interest margin (1) 3.64%
Taxable equivalent adjustment $ 25,509
==========
Net Interest Income Analysis -
Taxable Equivalent Basis
Associated Banc-Corp Year ended December 31, 2004
--------------------------------
Interest Average
(in thousands) Average Income / Yield /
Balance Expense Rate
--------------------------------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 6,928,494 $ 350,889 5.06%
Residential mortgage 2,170,600 122,453 5.64
Retail 2,075,762 122,406 5.90
-----------------------
Total loans 11,174,856 595,748 5.33
Investments and other 4,028,072 196,902 4.89
-----------------------
Total earning assets 15,202,928 792,650 5.21
Other assets, net 1,162,834
------------
Total assets $16,365,762
============
Interest-bearing liabilities:
Savings deposits $ 967,930 $ 3,487 0.36%
Interest-bearing demand deposits 2,406,280 19,874 0.83
Money market deposits 1,628,208 14,259 0.88
Time deposits, excluding Brokered
CDs 3,042,933 76,930 2.53
-----------------------
Total interest-bearing deposits,
excluding Brokered CDs 8,045,351 114,550 1.42
Brokered CDs 232,066 3,686 1.59
-----------------------
Total interest-bearing deposits 8,277,417 118,236 1.43
Wholesale funding 4,590,953 96,259 2.10
-----------------------
Total interest-bearing liabilities 12,868,370 214,495 1.67
Noninterest-bearing demand 1,867,111
Other liabilities 130,675
Stockholders' equity 1,499,606
------------
Total liabilities and stockholders'
equity $16,365,762
============
----------
Net interest income and rate spread (1) $ 578,155 3.54%
==========
Net interest margin (1) 3.80%
Taxable equivalent adjustment $ 25,528
==========
----------------------------------------------------------------------
Three months ended
December 31, 2005
--------------------------------
Interest Average
Average Income / Yield /
Balance Expense Rate
--------------------------------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 9,222,512 $ 156,412 6.64%
Residential mortgage 2,905,463 41,482 5.68
Retail 3,026,250 55,120 7.25
-----------------------
Total loans 15,154,225 253,014 6.58
Investments and other 4,926,533 58,295 4.73
-----------------------
Total earning assets 20,080,758 311,309 6.12
Other assets, net 1,941,407
------------
Total assets $22,022,165
============
Interest-bearing liabilities:
Savings deposits $ 1,150,777 $ 800 0.28%
Interest-bearing demand deposits 2,210,056 7,082 1.27
Money market deposits 2,623,223 17,121 2.59
Time deposits, excluding Brokered
CDs 4,342,185 37,004 3.38
-----------------------
Total interest-bearing deposits,
excluding Brokered CDs 10,326,241 62,007 2.38
Brokered CDs 483,100 4,927 4.05
-----------------------
Total interest-bearing deposits 10,809,341 66,934 2.46
Wholesale funding 6,280,793 62,014 3.87
-----------------------
Total interest-bearing liabilities 17,090,134 128,948 2.98
Noninterest-bearing demand 2,473,569
Other liabilities 138,328
Stockholders' equity 2,320,134
------------
Total liabilities and stockholders'
equity $22,022,165
============
----------
Net interest income and rate spread (1) $ 182,361 3.14%
==========
Net interest margin (1) 3.59%
Taxable equivalent adjustment $ 6,766
==========
----------------------------------------------------------------------
Three months ended
December 31, 2004
--------------------------------
Interest Average
Average Income / Yield /
Balance Expense Rate
--------------------------------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 7,702,801 $ 104,124 5.29%
Residential mortgage 2,552,396 36,050 5.63
Retail 2,603,197 39,751 6.07
-----------------------
Total loans 12,858,394 179,925 5.52
Investments and other 4,579,224 53,967 4.71
-----------------------
Total earning assets 17,437,618 233,892 5.31
Other assets, net 1,518,827
------------
Total assets $18,956,445
============
Interest-bearing liabilities:
Savings deposits $ 1,087,220 $ 959 0.35%
Interest-bearing demand deposits 2,525,312 5,688 0.90
Money market deposits 1,918,149 5,012 1.04
Time deposits, excluding Brokered
CDs 3,634,972 23,703 2.59
-----------------------
Total interest-bearing deposits,
excluding Brokered CDs 9,165,653 35,362 1.53
Brokered CDs 278,812 1,473 2.10
-----------------------
Total interest-bearing deposits 9,444,465 36,835 1.55
Wholesale funding 5,317,413 32,258 2.38
-----------------------
Total interest-bearing liabilities 14,761,878 69,093 1.85
Noninterest-bearing demand 2,214,181
Other liabilities 157,671
Stockholders' equity 1,822,715
------------
Total liabilities and stockholders'
equity $18,956,445
============
----------
Net interest income and rate spread (1) $ 164,799 3.46%
==========
Net interest margin (1) 3.74%
Taxable equivalent adjustment $6,342
==========
----------------------------------------------------------------------
(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.
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion