Associated Earns 68 Cents Per Share in 2nd Quarter.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)--July 18, 2002 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. earned $.68 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 quarter ended June June: see month. 30, 2002, a 7.9 percent increase from $.63 per diluted share for the same period in 2001. For the six months ended June 30, 2002, 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 $1.37 compared to $1.20 for the same period in 2001. All per share numbers have been restated to reflect a 10 percent stock dividend, paid on May 15, 2002 to shareholders of record at the close of business on April 29, 2002. Return on average assets was 1.50 percent in the first six months compared to 1.36 percent for the same period last year. For the quarter, return on average assets was 1.47 percent, compared to 1.42 percent for the same quarter last year. Results include the contribution of the former Signal Financial Corporation of 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 , since its acquisition on Feb. 28, 2002. Signal, which added $1.1 billion in total assets, $765 million in loans, and $783 million in deposits, was successfully integrated into Associated's operating platform during the second quarter. Signal had a modest impact on the company's overall results for the second quarter. Loans grew 10 percent compared to one year ago, including the loans acquired with the Signal acquisition. On an 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. basis, total loans grew 5 percent compared to the first quarter this year. Residential real estate loans decreased between the comparable second quarter periods as customers took advantage of lower rates and continued to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. into fixed rate mortgages. Residential real estate loans declined 9 percent, annualized, from the first quarter. The company sells most of its new fixed rate mortgage production and refinanced mortgages into the secondary market but retains the servicing of these mortgages as well as the customer relationships. Home equity loans have grown as consumers have taken advantage of lower prevailing borrowing rates. Commercial loan growth has been tempered by customers' uncertainty about the prospect for improved business conditions and their willingness to invest in a volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. economic environment. Commercial loans grew 7 percent on an annualized basis compared to the first quarter of this year. Noninterest-bearing deposits increased 33 percent compared to last year, to $1.6 billion at June 30, 2002, including the impact of Signal. Total deposits for the same period increased 6 percent. Deposits have grown primarily as the result of an improved company focus on gathering new deposit accounts, customer retention and increasing deposit business with existing customers. Total deposits, excluding CDs, grew 6 percent on an annualized basis compared to the first quarter this year. Net interest income for the quarter and the six-month period ended June 30, 2002 was $126 million and $243 million, respectively. The company's net interest income benefited from loan growth and an improved mix of loans, deposits and other funding sources, as well as lower interest rates. The second quarter 2002 net interest margin was 3.96 percent compared to 3.56 percent in the year earlier quarter and 3.91 percent in the first quarter of 2002. The company issued $175 million in trust preferred securities during the second quarter to strengthen its regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital position and liquidity. The proceeds will be used for general corporate purposes. For the year, the company has spent $29 million 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 850,000 shares of common stock. Noninterest income grew 2 percent to $97.3 million for the six months ended June 30, 2002 up from $95.3 million for the same period last year; however, it declined 2 percent compared to the second quarter last year. Including the results of Signal, service charges on deposit accounts increased $2.2 million, commissions from retail insurance and investment products were up $1.6 million, and trust fees increased $.4 million in the second quarter of 2002 compared to the second quarter last year. Mortgage banking fee revenue for the second quarter of 2002 decreased $6 million versus the comparable quarter as refinancing Refinancing An extension and/or increase in amount of existing debt. activity declined in 2002 compared to 2001. Despite lower mortgage banking revenue, the company's total mortgage production was stronger than expected for the first half of 2002. Additionally, the noninterest income comparison is affected by a $3 million gain on the bulk sale 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. in the second quarter of last year. With the acquisition of Signal, noninterest expenses increased 11 percent for the second quarter of 2002, compared to 2001. The predominant pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. increases in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were in personnel and 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 which were up 18 percent and 12 percent, respectively, compared to the year earlier quarter, given a larger employee base and broader branch network as the company assimilated Signal's businesses and operations. Late in the second quarter Signal was successfully integrated into Associated's operating platform, and operating efficiency savings are expected to be realized in the coming quarters. Expense comparisons are also affected by the required adoption of Statement of Financial Accounting Standards No. 142, on January January: see month. 1, 2002. This ended the amortization of goodwill, an expense of approximately $1.4 million or 2 cents per diluted share, per quarter, in 2001. Excluding Signal and the amortization of goodwill for 2001, noninterest expenses were approximately flat compared to the second quarter of 2001. Net charge-offs for the second quarter were $7.6 million, up slightly from $7.1 million in the first quarter of 2002 and $3.6 million for the year earlier quarter. For the first six months, the company had net charge-offs of $14.7 million, up from $5.8 million for the same period last year. 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. increased to $87.3 million at June 30, 2002, up from $71.7 million at March 31, 2002, and $53.1 million at June 30 last year. Non-performing loans at June 30, 2002 include a $22 million credit. The payments are current on this credit, but Associated has doubt with respect to future collectibility. The provision for loan losses was increased to $12 million for the quarter, up from $11.3 million for the first quarter of 2002 and $6.4 million for the year earlier quarter. For the first six months of 2002, the provision for loan losses was $23.3 million, up from $12 million for the same period last year. The provision for loan losses reflects the increase in non-performing assets and charge-offs. The ratio of allowance for loan losses to total loans was 1.50 percent at June 30, 2002. The allowance includes a $10 million allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as for the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. credit. "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that interest rates will remain relatively stable and that the economy will improve at a faster rate in the second half of 2002. We believe these conditions will translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. into improved asset quality and loan growth, allowing us to grow earnings per share 10 to 12 percent in 2002, as previously projected" Associated Banc-Corp 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
"At the same time, the successful integration of Signal Financial into the Associated brand and operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. positions us to take full advantage of our greatly increased market position, capabilities and efficiency in the vibrant markets of Eastern Minnesota," he added. "We're we're Contraction of we are. we're we are very pleased that our progress on our strategic initiatives is delivering improved value for our shareholders," Gallagher said. 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 $14.5 billion. Associated has more than 200 banking offices 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. 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
June 30, December 31, June 30,
(in thousands) 2002 2001 % Change 2001 % Change
----------------------------------------------------------------------
Assets
Cash and
due from banks $ 346,708 $ 587,994 (41.0%) $ 309,521 12.0%
Interest-bearing
deposits in other
financial
institutions 11,853 5,427 118.4% 4,692 152.6%
Federal funds sold
and securities
purchased under
agreements to
resell 51,275 12,015 326.8% 42,350 21.1%
Securities
available for
sale, at fair
value 3,424,127 3,197,021 7.1% 3,249,373 5.4%
Loans held for
sale 123,520 301,707 (59.1%) 128,192 (3.6%)
Loans 9,882,669 9,019,864 9.6% 8,983,678 10.0%
Allowance for
loan losses (148,733) (128,204) 16.0% (126,390) 17.7%
------------ ------------ ------------
Loans, net 9,733,936 8,891,660 9.5% 8,857,288 9.9%
Premises and
equipment 134,766 119,528 12.7% 122,592 9.9%
Goodwill 211,611 92,397 129.0% 95,638 121.3%
Other intangible
assets 47,239 37,991 24.3% 41,118 14.9%
Other assets 391,457 358,634 9.2% 361,525 8.3%
------------ ------------ ------------
Total assets $ 14,476,492 $ 13,604,374 6.4% $ 13,212,289 9.6%
============ ============ ============
Liabilities and
Stockholders' Equity
Noninterest-bearing
deposits $ 1,566,487 $ 1,425,109 9.9% $ 1,175,615 33.2%
Interest-bearing
deposits,
excluding
Brokered CDs 7,225,789 6,897,502 4.8% 7,001,753 3.2%
Brokered CDs 233,968 290,000 (19.3%) 322,858 (27.5%)
------------ ------------ ------------
Total deposits 9,026,244 8,612,611 4.8% 8,500,226 6.2%
Short-term
borrowings 2,301,853 2,643,851 (12.9%) 2,958,835 (22.2%)
Long-term debt 1,513,131 1,103,395 37.1% 522,234 189.7%
Company-obligated
mandatorily
redeemable
preferred
securities 174,636 - N/M - N/M
Accrued expenses
and other
liabilities 185,383 174,101 6.5% 180,316 2.8%
------------ ------------ ------------
Total
liabilities 13,201,247 12,533,958 5.3% 12,161,611 8.5%
Stockholders'
Equity
Preferred stock - - -
Common stock 767 662 15.9% 664 15.5%
Surplus 682,519 289,751 135.6% 297,289 129.6%
Retained earnings 552,230 760,031 (27.3%) 710,052 (22.2%)
Accumulated other
comprehensive
income 72,171 47,176 53.0% 51,857 39.2%
Treasury stock,
at cost (32,442) (27,204) 19.3% (9,184) 253.2%
------------ ------------ ------------
Total stockholders'
equity 1,275,245 1,070,416 19.1% 1,050,678 21.4%
------------ ------------ ------------
Total liabilities
and stockholders'
equity $ 14,476,492 $ 13,604,374 6.4% $ 13,212,289 9.6%
============ ============ ============
N/M - Not meaningful.
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months Ended, For The Six Months Ended,
June 30, June 30,
-------------------------- --------------------------
(in thousands,
except per share
amounts) 2002 2001 % Change 2002 2001 % Change
----------------------------------------------------------------------
Interest Income
Interest and
fees on loans $158,321 $178,236 (11.2%) $309,670 $362,611 (14.6%)
Interest and
dividends on
investment
securities:
Taxable 33,114 37,082 (10.7%) 65,886 75,654 (12.9%)
Tax-exempt 9,988 10,042 (0.5%) 19,968 20,206 (1.2%)
Interest on
deposits in
other financial
institutions 258 94 174.5% 345 215 60.5%
Interest on
federal funds
sold and
securities
purchased under
agreements to
resell 176 194 (9.3%) 294 641 (54.1%)
-------- -------- -------- --------
Total interest
income 201,857 225,648 (10.5%) 396,163 459,327 (13.8%)
Interest Expense
Interest on
deposits 45,560 78,965 (42.3%) 93,789 170,392 (45.0%)
Interest on
short-term
borrowings 13,840 38,140 (63.7%) 27,495 81,444 (66.2%)
Interest on
long-term debt
and capital
securities 16,689 4,591 263.5% 31,684 6,536 384.8%
-------- -------- -------- --------
Total interest
expense 76,089 121,696 (37.5%) 152,968 258,372 (40.8%)
-------- -------- -------- --------
Net Interest
Income 125,768 103,952 21.0% 243,195 200,955 21.0%
Provision for
loan losses 12,003 6,365 88.6% 23,254 11,947 94.6%
-------- -------- -------- --------
Net interest
income after
provision for
loan losses 113,765 97,587 16.6% 219,941 189,008 16.4%
Noninterest
Income
Trust service
fees 7,722 7,339 5.2% 15,093 15,411 (2.1%)
Service charges
on deposit
accounts 11,733 9,550 22.9% 21,613 18,295 18.1%
Mortgage banking 9,637 15,504 (37.8%) 22,241 24,689 (9.9%)
Credit card and
other
nondeposit fees 7,094 7,121 (0.4%) 13,166 13,896 (5.3%)
Retail
commissions 5,885 4,265 38.0% 10,501 8,749 20.0%
Bank owned life
insurance
income 3,469 3,184 9.0% 6,739 6,318 6.7%
Asset sale
gains, net 41 383 (89.3%) 372 915 (59.3%)
Investment
securities
gains (losses),
net - (4)(100.0%) - 242 (100.0%)
Other 4,322 3,687 17.2% 7,578 6,833 10.9%
-------- -------- -------- --------
Total
noninterest
income 49,903 51,029 (2.2%) 97,303 95,348 2.1%
Noninterest Expense
Personnel
expense 48,764 41,233 18.3% 93,758 81,538 15.0%
Occupancy 6,650 5,927 12.2% 12,787 12,281 4.1%
Equipment 3,727 3,650 2.1% 7,217 7,330 (1.5%)
Data processing 5,304 4,822 10.0% 10,107 9,665 4.6%
Business
development and
advertising 3,126 3,191 (2.0%) 6,572 6,192 6.1%
Stationery and
supplies 1,786 2,330 (23.3%) 3,830 4,062 (5.7%)
FDIC expense 402 446 (9.9%) 774 880 (12.0%)
Mortgage
servicing
rights expense 3,874 2,710 43.0% 6,771 6,609 2.5%
Goodwill
amortization - 1,385 (100.0%) - 2,769 (100.0%)
Other intangible
amortization 884 717 23.3% 1,599 1,434 11.5%
Other 16,920 15,867 6.6% 30,689 27,968 9.7%
-------- -------- -------- --------
Total
noninterest
expense 91,437 82,278 11.1% 174,104 160,728 8.3%
-------- -------- -------- --------
Income before
income taxes 72,231 66,338 8.9% 143,140 123,628 15.8%
Income tax
expense 20,048 20,319 (1.3%) 39,658 35,523 11.6%
-------- -------- -------- --------
Net Income $ 52,183 $ 46,019 13.4% $103,482 $ 88,105 17.5%
======== ======== ======== ========
Earnings Per Share:
Basic $ 0.69 $ 0.63 9.5%(a) $ 1.39 $ 1.21 14.9%(a)
Diluted $ 0.68 $ 0.63 7.9%(a) $ 1.37 $ 1.20 14.2%(a)
Average Shares Outstanding:
Basic 75,922 72,760 4.3% 74,540 72,763 2.4%
Diluted 77,041 73,360 5.0% 75,510 73,344 3.0%
(a) For the three months ended June 30, 2001, basic and diluted
earnings per share would have been $0.65, and for the six months
ended June 30, 2001, basic and diluted earnings per share would
have been $1.25 and $1.24, respectively, as adjusted for the
adoption of Statement of Financial Accounting Standards No. 142,
"Goodwill and Other Intangible Assets." As a result of this
adjustment, the increase in basic and diluted earnings per share
from second quarter of 2001 to 2002 is 5.9% and 5.2%,
respectively, and the increase in basic and diluted earnings per
share from the first half of 2001 to 2002 is 11.3% and 10.6%,
respectively.
----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands,
except per share data) YTD 2002 2nd Qtr 2002 1st Qtr 2002
----------------------------------------------------------------------
Summary of Operations
Interest income $ 396,163 $ 201,857 $ 194,306
Interest expense 152,968 76,089 76,879
Net interest income 243,195 125,768 117,427
Provision for loan losses 23,254 12,003 11,251
Net interest income after
provision for loan losses 219,941 113,765 106,176
Asset sale gains, net 372 41 331
Investment securities
gains (losses) - - -
Noninterest income
(excluding securities
& asset gains) 96,931 49,862 47,069
Noninterest expense 174,104 91,437 82,667
Income taxes 39,658 20,048 19,610
Net income 103,482 52,183 51,299
Taxable equivalent
adjustment 12,100 6,037 6,063
----------------------------------------------------------------------
Per Common Share Data (a)
Net income:
Basic $ 1.39 $ 0.69 $ 0.70
Diluted 1.37 0.68 0.69
Dividends 0.59 0.31 0.28
Market Value:
High $ 38.25 $ 38.25 $ 35.29
Low 30.37 33.63 30.37
Close 37.71 37.71 34.57
Book value 16.84 16.84 16.23
----------------------------------------------------------------------
Performance Ratios
(annualized)
Net interest
margin (FTE) 3.94% 3.96% 3.91%
Return on average assets 1.50 1.47 1.54
Return on average equity 17.52 16.73 18.40
Return on tangible
average equity (b) 20.68 20.36 21.05
Efficiency ratio (c) 49.43 50.33 48.47
Effective tax rate 27.71 27.76 27.65
Dividend payout ratio
(basic) 42.58 44.93 40.26
----------------------------------------------------------------------
Average Balances
Assets $13,907,262 $14,273,232 $13,538,602
Earning assets 12,934,385 13,248,590 12,616,040
Interest-bearing
liabilities 11,163,244 11,400,302 10,923,561
Loans 9,655,626 9,902,462 9,405,417
Deposits 8,883,742 9,081,434 8,683,879
Stockholders' equity 1,191,063 1,250,748 1,130,714
Stockholders'
equity / assets 8.56% 8.76% 8.35%
----------------------------------------------------------------------
At Period End
Assets $14,476,492 $14,327,900
Earning assets 13,493,444 13,354,108
Loans 9,882,669 9,757,584
Allowance for
loan losses 148,733 144,350
Deposits 9,026,244 9,192,692
Stockholders' equity 1,275,245 1,230,820
Stockholders'
equity / assets 8.81% 8.59%
Goodwill and core
deposit intangibles 222,038 222,922
Shares outstanding,
end of period 75,746 75,849
----------------------------------------------------------------------
Credit Quality
Nonaccrual loans $ 82,474 $ 63,626
Loans 90 or more days
past due and still
accruing (d) 4,683 4,991
Restructured loans 115 3,097
--------- --------
Total nonperforming
loans 87,272 71,714
Other real estate owned
(ORE) 2,610 2,782
--------- --------
Total nonperforming
assets 89,882 74,496
========= ========
Net charge-offs 7,620 7,090
Allowance for loan
losses / loans 1.50% 1.48%
Allowance for loan
losses / nonperforming
loans 170.42 201.29
Nonperforming
loans / total loans 0.88 0.73
Nonperforming
assets / total assets 0.62 0.52
Net charge-offs / average
loans (annualized) 0.31 0.31
Year-to-date net
charge-offs / average
loans 0.31 0.31
----------------------------------------------------------------------
(in thousands,
except per share data) 4th Qtr 2001 3rd Qtr 2001 2nd Qtr 2001
----------------------------------------------------------------------
Summary of Operations
Interest income $ 203,861 $ 217,434 $ 225,648
Interest expense 89,842 110,423 121,696
Net interest income 114,019 107,011 103,952
Provision for loan losses 9,297 6,966 6,365
Net interest income after
provision for loan losses 104,722 100,045 97,587
Asset sale gains, net 1,023 59 383
Investment securities
gains (losses) - 476 (4)
Noninterest income
(excluding securities
& asset gains) 51,083 47,614 50,650
Noninterest expense 93,553 84,088 82,278
Income taxes 16,963 19,001 20,319
Net income 46,312 45,105 46,019
Taxable equivalent
adjustment 5,534 5,580 5,541
----------------------------------------------------------------------
Per Common Share Data (a)
Net income:
Basic $ 0.64 $ 0.62 $ 0.63
Diluted 0.64 0.62 0.63
Dividends 0.28 0.28 0.28
Market Value:
High $ 32.71 $ 33.55 $ 32.72
Low 28.89 27.12 28.75
Close 32.08 30.81 32.72
Book value 14.89 14.90 14.45
----------------------------------------------------------------------
Performance Ratios
(annualized)
Net interest
margin (FTE) 3.83% 3.63% 3.56%
Return on average assets 1.39 1.36 1.42
Return on average equity 17.03 17.03 18.02
Return on tangible
average equity (b) 18.76 18.85 20.05
Efficiency ratio (c) 54.83 52.49 51.38
Effective tax rate 26.81 29.64 30.63
Dividend payout ratio
(basic) 44.03 45.45 44.73
----------------------------------------------------------------------
Average Balances
Assets $13,250,476 $13,113,470 $13,036,595
Earning assets 12,370,785 12,289,628 12,228,357
Interest-bearing
liabilities 10,700,022 10,747,124 10,760,548
Loans 9,211,562 9,107,577 9,063,780
Deposits 8,566,495 8,468,508 8,504,760
Stockholders' equity 1,078,904 1,051,064 1,024,287
Stockholders'
equity / assets 8.14% 8.02% 7.86%
----------------------------------------------------------------------
At Period End
Assets $13,604,374 $13,564,825 $13,212,289
Earning assets 12,536,035 12,728,948 12,408,285
Loans 9,019,864 9,010,370 8,983,678
Allowance for
loan losses 128,204 126,631 126,390
Deposits 8,612,611 8,398,912 8,500,226
Stockholders' equity 1,070,416 1,078,874 1,050,678
Stockholders'
equity / assets 7.87% 7.95% 7.95%
Goodwill and core
deposit intangibles 98,322 100,396 102,497
Shares outstanding,
end of period 71,869 72,386 72,716
----------------------------------------------------------------------
Credit Quality
Nonaccrual loans $ 48,238 $ 56,651 $ 49,147
Loans 90 or more days
past due and still
accruing (d) 3,649 11,376 3,779
Restructured loans 238 241 143
-------- --------- --------
Total nonperforming
loans 52,125 68,268 53,069
Other real estate owned
(ORE) 2,717 2,396 2,603
-------- --------- --------
Total nonperforming
assets 54,842 70,664 55,672
======== ========= ========
Net charge-offs 7,724 6,725 3,643
Allowance for loan
losses / loans 1.42% 1.41% 1.41%
Allowance for loan
losses / nonperforming
loans 245.95 185.49 238.16
Nonperforming
loans / total loans 0.58 0.76 0.59
Nonperforming
assets / total assets 0.40 0.52 0.42
Net charge-offs / average
loans (annualized) 0.33 0.29 0.16
Year-to-date net
charge-offs / average
loans 0.22 0.18 0.13
----------------------------------------------------------------------
(a) Per share data adjusted retroactively for stock splits and stock
dividends.
(b) Return on tangible average equity = Net income divided by average
stockholders' equity excluding goodwill and other intangible
assets.
(c) 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.
(d) Does not include guaranteed student loans. Guaranteed student
loans 90+ days past due and still accruing totaled $20.1 million
as of June 30, 2002.
----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp Three months ended
June 30,
------------------------------------------
(in thousands, except
per share data) 2002 2001 % Change
--------------------------- ------------------------------------------
Allowance for Loan Losses
Beginning balance $ 144,350 $ 123,668 16.7%
Balance related to acquisitions - - N/M
Provision for loan losses 12,003 6,365 88.6%
Charge-offs (8,802) (4,306) 104.4%
Recoveries 1,182 663 78.3%
-----------------------------
Net charge-offs (7,620) (3,643) 109.2%
-----------------------------
Ending Balance $ 148,733 $ 126,390 17.7%
=============================
--------------------------- ------------------------------------------
Performance Ratios (annualized)
Return on average assets 1.47% 1.42% 5 bp
Return on average equity 16.73% 18.02% (129)bp
Return on tangible
average equity (a) 20.36% 20.05% 31 bp
Efficiency ratio (b) 50.33% 51.38% (105)bp
Effective tax rate 27.76% 30.63% (287)bp
Dividend payout ratio (basic) 44.93% 44.73% 20 bp
--------------------------- ------------------------------------------
Average Yield and Rate
Loans 6.37% 7.84% (147)bp
Investments and other 5.89% 6.66% (77)bp
Total earning assets 6.25% 7.53% (128)bp
Interest-bearing deposits,
excluding brokered CDs 2.40% 4.20% (180)bp
Brokered CDs 2.12% 5.96% (384)bp
Wholesale funding 3.21% 5.01% (180)bp
Total interest-bearing liabilities 2.66% 4.51% (185)bp
Net interest margin 3.96% 3.56% 40 bp
--------------------------- ------------------------------------------
Period End Loan Composition
Commercial, financial
& agricultural $2,127,665 $1,774,451 19.9%
Real estate - construction 821,658 749,185 9.7%
Commercial real estate 3,037,284 2,401,869 26.5%
Lease financing 38,212 14,026 172.4%
-----------------------------
Commercial 6,024,819 4,939,531 22.0%
Residential real estate 2,364,373 2,863,382 (17.4%)
Home equity 777,347 535,525 45.2%
-----------------------------
Residential mortgage 3,141,720 3,398,907 (7.6%)
Consumer 716,130 645,240 11.0%
-----------------------------
Total loans $9,882,669 $8,983,678 10.0%
=============================
--------------------------- ------------------------------------------
Period End Deposit Composition
Demand $1,566,487 $1,175,615 33.2%
Savings 912,019 839,538 8.6%
Interest-bearing demand deposits 1,113,342 762,910 45.9%
Money market 1,888,165 1,759,104 7.3%
Brokered certificates of deposit 233,968 322,857 (27.5%)
Other time deposits 3,312,263 3,640,202 (9.0%)
-----------------------------
Total deposits $9,026,244 $8,500,226 6.2%
=============================
----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp Six months ended
June 30,
------------------------------------------
(in thousands, except
per share data) 2002 2001 % Change
--------------------------- ------------------------------------------
Allowance for Loan Losses
Beginning balance $ 128,204 $ 120,232 6.6%
Balance related to acquisitions 11,985 - N/M
Provision for loan losses 23,254 11,947 94.6%
Charge-offs (16,787) (7,216) 132.6%
Recoveries 2,077 1,427 45.6%
-----------------------------
Net charge-offs (14,710) (5,789) 154.1%
-----------------------------
Ending Balance $ 148,733 $ 126,390 17.7%
=============================
--------------------------- ------------------------------------------
Performance Ratios (annualized)
Return on average assets 1.50% 1.36% 14 bp
Return on average equity 17.52% 17.61% (9)bp
Return on tangible
average equity (a) 20.68% 19.65% 103 bp
Efficiency ratio (b) 49.43% 52.48% (305)bp
Effective tax rate 27.71% 28.73% (102)bp
Dividend payout ratio (basic) 42.58% 45.08% (250)bp
--------------------------- ------------------------------------------
Average Yield and Rate
Loans 6.42% 8.04% (162)bp
Investments and other 5.98% 6.73% (75)bp
Total earning assets 6.31% 7.70% (139)bp
Interest-bearing deposits,
excluding brokered CDs 2.54% 4.43% (189)bp
Brokered CDs 2.08% 6.33% (425)bp
Wholesale funding 3.22% 5.41% (219)bp
Total interest-bearing liabilities 2.75% 4.81% (206)bp
Net interest margin 3.94% 3.45% 49 bp
--------------------------- ------------------------------------------
(a) Return on tangible average equity = Net income divided by average
stockholders' equity excluding goodwill and other intangible
assets.
(b) 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.
N/M = Not Meaningful
bp = basis points
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion