Associated Earns $1.29 Per Common Share for 2008, 11 Cents in Fourth Quarter.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 ): * Net income to common shareholders of $165 million for 2008, and $14 million for fourth quarter * Net interest income of $696 million, up 8% over 2007 * Net interest margin 3.65% for 2008 versus 3.60% for 2007, and 3.88% for fourth quarter * Average loan growth up 6% over 2007, and up 2% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. between fourth and third quarters * Core fee-based income up 6% over 2007, and up 5% between the comparable fourth quarters * Other-than-temporary valuation losses on investments of $53 million for 2008 (or $0.27 per share after tax), and $35 million for 4Q * $525 million senior preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. investment by the U.S. Department of the Treasury on Nov. 21st * Over $1.5 billion of credit originated, renewed or extended to new and existing customers since Nov. 21st * Tangible capital ratio grew to 8.23% at Dec 31, compared to 6.50% at Sept 30 and 6.59% a year ago Associated Banc-Corp (NASDAQ: ASBC) reported net income available to common shareholders of $165 million, or $1.29 per common share for 2008. Comparatively, net income was $286 million, or $2.23 per common share for 2007. Net income available to common shareholders was $14 million, or $0.11 per common share for fourth quarter 2008, compared to $38 million ($0.30 per common share) for third quarter 2008 and $65 million ($0.51 per common share) for fourth quarter 2007. Fourth quarter 2008 results included several nonrecurring items or other charges. Other-than-temporary valuation losses on investments were $35 million or $0.18 per common share after tax. In combination, a $7 million valuation reserve expense related to the fair value of 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. rights, a $3 million loss on an alleged customer fraud, and a $3 million write down on a foreclosed property reduced 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. earnings per common share by $0.07. A single bond security is responsible for $31 million of the fourth quarter other-than-temporary marks, and has a remaining carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of $33 million at Dec. 31. The bond is comprised of large fixed-rate, 30-year amortizing mortgages with reasonably strong loan-to-value ratios Loan-to-value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. and weighted average credit scores. In consideration of a significant fourth quarter decline in the market value of this bond and the business and economic environment, other-than-temporary impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. was recorded. Of the remaining $3.7 billion of mortgage-related securities held at year-end 2008, $3.6 billion are agency insured, and the vast majority of the remainder are seasoned. As a result, further exposure to other-than-temporary impairment is not expected to be significant. In November 2008, Associated sold $525 million of senior preferred stock, bearing a 5% dividend for the first 5 years and 9% thereafter, and related common stock warrants, to the U.S. Department of the Treasury under the federal government's voluntary Capital Purchase Program. As a result, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at December 31, 2008, included $508 million attributable to the senior preferred stock net of the preferred stock discount. The tangible capital ratio grew to 8.23% at year end 2008, compared to 6.50% at Sept. 30 and 6.59% a year ago. Finally, the senior preferred stock dividends and discount amortization that began in the fourth quarter reduced net income available to common shareholders by $3 million, or $0.03 per common share. Since the infusion of capital over $1.5 billion of credit has been originated or committed to be extended to new and existing customers. During the fourth quarter of 2008, Associated invested in guaranteed government agency mortgage-related securities in support of the mortgage markets. Thus, since Sept. 30, total assets and investment securities were each up $1.7 billion. For fourth quarter 2008, net interest income was $192 million, $25 million (15 percent) higher than third quarter, with the net interest margin improving 40 basis to 3.88 percent. Average loans were $16.3 billion for fourth quarter 2008, up $0.1 billion (2 percent annualized) over the third quarter of 2008, led by consumer-based loan growth, while commercial loan growth was offset by workouts and charge offs. Average deposits for fourth quarter were $14.4 billion, up $0.7 billion over third quarter 2008, primarily attributable to higher network transaction deposits and brokered CDs. At Dec. 31, deposits were $15.2 billion, up $0.9 billion over Sept. 30, with growth in nearly all categories, especially demand deposits (up $0.3 million or 11 percent) and money markets (up $0.3 million or 7 percent). The provision for loan losses was $65 million and net charge offs were $46 million for fourth quarter 2008, compared to $55 million and $38 million, respectively, for third quarter 2008. During this quarter, nonperforming loans increased $36 million to $341 million at year-end 2008 (representing 2.09 percent of loans), compared to nonperforming loans of $163 million (or 1.05 percent of loans) at year-end 2007. The allowance for loan losses to total loans ratio increased to 1.63 percent at Dec. 31, 2008, compared to 1.51 percent at Sept. 30, 2008, and 1.29 percent at year-end 2007. Core fee-based revenues for fourth quarter 2008 were $67 million, up $3 million or 5 percent over the fourth quarter of last year. For the fourth quarter 2008 mortgage banking incurred a $1 million net loss, principally from a $7 million valuation charge related to mortgage servicing rights fair value. Comparatively, net mortgage banking income was $0.5 million (including a $1.4 million valuation charge) for fourth quarter 2007, and $4 million (including a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. $1 million valuation recovery) for third quarter 2008. Mortgage applications increased 200% in December of 2008 over November, of which the majority will close in the first quarter of 2009. Fourth quarter 2008 noninterest expense was $149 million, up $12 million or 9 percent over third quarter 2008. Previously noted items (severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , fraud matter and foreclosed property write down) accounted for $7 million of the increase, with the remainder largely due to elevated foreclosure/collection costs, increased legal and consultant expense, and higher weather-related occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal . Compared to the fourth quarter last year, noninterest expense was up 6 percent. The efficiency ratio improved to 52.41 percent for 2008, compared to 53.92 percent for 2007, while for the fourth and third quarters of 2008, the efficiency ratio was 53.87 percent and 52.18 percent, respectively. During the fourth quarter, Associated paid a dividend of 32 cents per common share, bringing the 2008 dividend per common share to $1.27, up 4 percent from 2007. Associated will host a conference call for investors and analysts at 3 p.m. Central Time (CT) today, January 22, 2009. The toll-free dial-in number for the live call is 800-762-8779. The number for international callers is 480-248-5081. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2008 earnings call, or for call ID number 3960724. A replay of the call will be available starting at 6 p.m. CT Jan. 22, 2009, through 12:00 midnight CT on February 22, 2009, by calling 800-406-7325 (toll-free) domestically or 303-590-3030 internationally. The call ID number, 3960724, is required to access the replay. Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified diversified (di·verˑ·s bank holding company with total assets of $24 billion. Associated has approximately 300 banking offices serving approximately 160 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. 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 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. . Six pages of tables follow. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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