Associated First Quarter Earnings 63 Cents Per Share.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)--April 19, 2001 Associated Banc-Corp Associated Banc-Corp is a bank holding company headquartered in Green Bay, Wisconsin. As of early 2007, it had $20.8 billion in assets and was the 41st largest bank holding company in the United States.[1] The company has over 5101 employees. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ASBC ASBC American Society of Brewing Chemists (St. Paul, MN) ASBC American Small Business Coalition ASBC Air and Space Basic Course (USAF) ASBC Archaeological Society of British Columbia ) reported earnings of 63 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the first quarter of 2001, compared to 62 cents per diluted share in the first quarter of 2000, and 60 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the fourth quarter of 2000. Net income was $42.1 million, compared to $43.1 million in the first quarter of 2000 (which included gains from the sale of certain branches), and $39.7 million in the fourth quarter of 2000. Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) and return on 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. ) also improved, to 1.31 percent and 17.18 percent, respectively, from 1.21 percent and 16.95 percent, respectively, in the previous quarter. Book value per share increased to $15.48. Net interest income was $97.0 million for the first quarter of 2001, down 1 percent from the year-earlier period, but up 3 percent from the fourth quarter of 2000. Net interest margin improved from 3.20 percent in the fourth quarter of 2000 to 3.34 percent in the first quarter of 2001, as the company began to benefit from declining interest rates. Total loans in the first quarter of 2001 were up $346 million, or 4 percent, over the comparable period in 2000, and remained level on a sequential One after the other in some consecutive order such as by name or number. quarter basis. At the same time, the company made significant progress on its objective of changing its loan mix. Commercial loans grew $589 million, or 14 percent over first quarter 2000 and grew 10 percent, 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, since 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. . Total loan growth was tempered by the decline in residential mortgages, as expected, as the company sold new mortgage loans into the secondary market. Recent declines in interest rates have stimulated stim·u·late v. stim·u·lat·ed, stim·u·lat·ing, stim·u·lates v.tr. 1. To rouse to activity or heightened action, as by spurring or goading; excite. See Synonyms at provoke. 2. mortgage production, including refinancing Refinancing An extension and/or increase in amount of existing debt. activity. Credit quality ratios remained strong, with net charge offs for the quarter at .10 percent of average loans, on an annualized basis, while nonperforming loans were up modestly at .62 percent of total loans. Non-interest income rose significantly in several key categories from the first quarter of 2000. Mortgage banking income doubled to $9.2 million, primarily due to heavy levels of refinancing, resulting in higher loan sales. Credit card and other non-deposit fees of $6.8 million increased 29 percent (principally due to the company's credit card agency agreement with Citibank CITIBANK First National City Bank U.S.A., initiated in the second quarter of 2000), while service charges on deposit accounts of $8.7 million increased 17 percent over the first quarter of 2000. These improvements were partially offset by declines in trust service fees, which are based on the market value of assets managed, and in retail commissions, which are comprised mainly of commissions on Associated's investment brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. businesses. Both of these areas were affected by declines in the overall stock market and lower interest rates. Net gains on asset and security sales declined $5.8 million when compared to the first quarter of 2000, primarily due to branch sale gains reported in the first quarter of 2000. While the company experienced revenue growth compared to the first quarter of 2000, expenses were flat, reflecting continued improvements in productivity. "While loan growth has slowed somewhat we are beginning to benefit from the decline in interest rates that began last December December: see month. ," 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. 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, we are aware that a continuing economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. would have a negative impact on our customers, and consequentially con·se·quen·tial adj. 1. Following as an effect, result, or conclusion; consequent. 2. Having important consequences; significant: , could affect our asset quality and temper tem·per n. 1. A state of mind or emotions; mood. 2. A tendency to become easily angry or irritable. 3. An outburst of rage. loan growth," he said, adding, "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we will see more robust economic growth in the second half of the year." "Our plan to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. our Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee banks, meanwhile, is on schedule and should be completed during the second quarter." As it indicated in January January: see month. , the company expects earnings for 2001 in the range of $2.60 to $2.65 per share. Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified diversified (di·verˑ·s multibank holding company Noun 1. multibank holding company - a bank holding company owning several banks bank holding company - a holding company owning or controlling one or more banks with total assets of $13.1 billion. Associated has more than 200 banking offices serving more than 150 communities in Wisconsin, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , and Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces . The company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.AssociatedBank.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are interest rates, changes in the mix of the company's business, competitive pressures, general economic conditions and the risk factors detailed in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. Tables follow.
----------------------------------------------------------------------
Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
March 31, December 31, March 31,
(in thousands) 2001 2000 2000
----------------------------------------------------------------------
Assets
Cash and due from banks $ 298,766 $ 368,186 $ 289,243
Interest-bearing deposits in
other financial institutions 10,201 5,024 4,550
Federal funds sold and
securities purchased under
agreements to resell 38,150 23,310 83,285
Securities held to maturity,
at amortized cost - 368,558 406,227
Securities available for
sale, at fair value 3,230,949 2,891,647 2,786,209
Loans held for sale 121,820 24,593 7,284
Loans 8,935,543 8,913,379 8,589,984
Allowance for loan losses (123,668) (120,232) (116,297)
------------ ------------ ------------
Loans, net 8,811,875 8,793,147 8,473,687
Premises and equipment 124,555 127,600 136,092
Other assets 486,070 526,329 548,043
------------ ------------ ------------
Total assets $ 13,122,386 $ 13,128,394 $ 12,734,620
============ ============ ============
Liabilities and Stockholders'
Equity
Noninterest-bearing deposits $ 1,209,762 $ 1,243,949 $ 1,112,924
Interest-bearing deposits 7,477,929 8,047,697 8,084,860
------------ ------------ ------------
Total deposits 8,687,691 9,291,646 9,197,784
Short-term borrowings 3,150,476 2,598,203 2,381,852
Long-term debt 122,277 122,420 122,834
Accrued expenses and other
liabilities 137,964 147,429 111,362
------------ ------------ ------------
Total liabilities 12,098,408 12,159,698 11,813,832
Stockholders' Equity
Preferred stock - - -
Common stock 664 664 634
Surplus 296,479 296,479 226,042
Retained earnings 685,443 663,566 750,683
Accumulated other
comprehensive income (loss) 49,220 15,581 (43,590)
Treasury stock, at cost (7,828) (7,594) (12,981)
============ ============ ============
Total stockholders' equity 1,023,978 968,696 920,788
------------ ------------ ------------
Total liabilities and
stockholders' equity $ 13,122,386 $ 13,128,394 $ 12,734,620
============ ============ ============
----------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months Ended,
March 31,
---------------------------
(in thousands, except per share amounts) 2001 2000
----------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 184,375 $ 172,239
Interest and dividends
on investment securities:
Taxable 38,572 41,722
Tax-exempt 10,164 8,196
Interest on deposits
in other financial institutions 121 64
Interest on federal funds sold and securities
purchased under agreements to resell 447 552
----------- -----------
Total interest income 233,679 222,773
Interest Expense
Interest on deposits 91,427 81,558
Interest on short-term borrowings 43,304 41,421
Interest on long-term debt 1,945 1,445
----------- -----------
Total interest expense 136,676 124,424
----------- -----------
Net Interest Income 97,003 98,349
Provision for loan losses 5,582 5,715
----------- -----------
Net interest income after provision for
loan losses 91,421 92,634
Noninterest Income
Trust service fees 8,072 10,123
Service charges on deposit accounts 8,745 7,474
Mortgage banking 9,174 4,590
Credit card and other nondeposit fees 6,786 5,276
Retail commissions 4,484 5,608
Asset sale gains, net 532 8,264
Investment securities gains (losses), net 246 (1,702)
Other 6,280 6,311
----------- -----------
Total noninterest income 44,319 45,944
Noninterest Expense
Personnel expense 40,305 38,638
Occupancy 6,354 6,144
Equipment 3,680 4,097
Data processing 4,843 5,679
Business development and advertising 3,001 3,230
Stationery and supplies 1,732 1,824
FDIC expense 434 477
Other 18,101 18,522
----------- -----------
Total noninterest expense 78,450 78,611
----------- -----------
Income before income taxes 57,290 59,967
Income tax expense 15,204 16,886
----------- -----------
Net Income $ 42,086 $ 43,081
=========== ===========
Earnings Per Share:
Basic $ 0.64 $ 0.62
Diluted $ 0.63 $ 0.62
Average Shares Outstanding:
Basic 66,150 69,504
Diluted 66,688 69,812
----------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
----------------------------------------------------------------------
(in thousands, except per share data)
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2001 2000 2000 2000 2000
----------------------------------------------------------------------
Summary of Operations
Interest income$ 233,679 $ 242,194 $ 237,892 $ 228,298 $ 222,773
Interest
expense 136,676 147,876 143,354 131,936 124,424
Net interest
income 97,003 94,318 94,538 96,362 98,349
Provision for
loan losses 5,582 5,203 4,122 5,166 5,715
Net interest
income after
provision for
loan losses 91,421 89,115 90,416 91,196 92,634
Investment
securities
gains (losses) 246 (455) (2) (5,490) (1,702)
Noninterest
income
(excluding
securities
gains) 44,073 43,850 44,371 55,978 47,646
Noninterest
expense 78,450 77,929 80,165 81,031 78,611
Income taxes 15,204 14,880 13,116 16,956 16,886
Net income 42,086 39,701 41,504 43,697 43,081
Taxable
equivalent
adjustment 5,601 5,869 5,840 5,321 4,717
----------------------------------------------------------------------
At Period End
Assets $13,122,386$13,128,394$13,120,002$12,998,259$12,734,620
Earning assets 12,336,663 12,226,511 12,223,247 12,069,240 11,877,539
Loans 8,935,543 8,913,379 8,858,665 8,696,417 8,589,984
Allowance for
loan losses 123,668 120,232 117,607 115,395 116,297
Deposits 8,687,691 9,291,646 9,331,316 9,245,391 9,197,784
Stockholders'
equity 1,023,978 968,696 930,183 930,223 920,788
Stockholders'
equity/assets 7.80% 7.38% 7.09% 7.16% 7.23%
Goodwill and
core deposit
intangibles 104,598 106,700 108,885 111,165 113,403
----------------------------------------------------------------------
Average Balances
Assets $13,014,503$13,086,752$12,903,544$12,674,173$12,572,527
Earning assets 12,197,015 12,288,402 12,122,879 11,930,943 11,841,910
Interest-
bearing
liabilities 10,805,833 10,854,175 10,724,729 10,563,782 10,540,529
Loans 8,985,659 8,921,729 8,771,251 8,596,649 8,459,281
Deposits 8,788,540 9,435,473 9,252,903 9,086,902 8,631,256
Stockholders'
equity 993,284 931,665 930,256 921,985 896,540
Stockholders'
equity/assets 7.63% 7.12% 7.21% 7.27% 7.13%
----------------------------------------------------------------------
Credit Quality
Nonaccrual
loans $ 50,310 $ 41,045 $ 39,907 $ 35,155 $ 32,716
Loans 90 or
more days past
due and still
accruing(a) 4,788 6,492 5,520 4,886 4,615
Restructured
loans 146 159 23 - 10
---------- ---------- ---------- ---------- ----------
Total
nonperforming
loans 55,244 47,696 45,450 40,041 37,341
Other real
estate owned
(ORE) 3,285 4,032 3,710 3,954 3,366
---------- ---------- ---------- ---------- ----------
Total
nonperforming
assets 58,529 51,728 49,160 43,995 40,707
========== ========== ========== ========== ==========
Net charge-offs 2,146 2,578 1,910 1,852 2,614
Allowance for
loan losses/
loans 1.38% 1.35% 1.33% 1.33% 1.35%
Allowance for
loan losses/
nonperforming
assets 211.29 232.43 239.23 262.29 285.69
Allowance for
loan losses/
nonperforming
loans 223.86 252.08 258.76 288.19 311.45
Nonperforming
assets/loans
plus ORE 0.65 0.58 0.55 0.51 0.47
Nonperforming
assets/total
assets 0.45 0.39 0.37 0.34 0.32
Net charge-offs
/average loans
(annualized) 0.10 0.11 0.09 0.09 0.12
----------------------------------------------------------------------
Per Common Share Data
Net income:
Basic $ 0.64 $ 0.60 $ 0.61 $ 0.63 $ 0.62
Diluted 0.63 0.60 0.61 0.63 0.62
Cash diluted 0.66 0.63 0.63 0.66 0.65
Dividends 0.2900 0.2900 0.2900 0.2636 0.2636
Market Value:
High $ 36.19 $ 30.63 $ 26.63 $ 27.27 $ 30.06
Low 29.75 21.84 22.13 21.81 20.29
Close 33.25 30.38 26.25 21.81 27.16
Book value 15.48 14.65 13.94 13.57 13.30
Shares
outstanding,
end of period
(000) 66,135 66,116 66,725 68,536 69,229
----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest
margin (FTE) 3.34% 3.20% 3.25% 3.37% 3.46%
Return on
average assets 1.31 1.21 1.28 1.39 1.38
Return on
average equity 17.18 16.95 17.75 19.06 19.33
Efficiency
ratio 53.68 54.08 56.63 56.03 55.19
Expense ratio 1.14 1.10 1.17 0.84 1.05
Effective tax
rate 26.54 27.26 24.01 27.96 28.16
Dividend payout
ratio (basic) 45.31 48.33 47.54 41.84 42.52
----------------------------------------------------------------------
Per share data adjusted retroactively for stock splits and stock
dividends.
Cash diluted EPS excludes the after-tax effect of the amortization of
goodwill related intangibles in net income.
Efficiency ratio = Noninterest expense divided by sum of taxable
equivalent net interest income plus noninterest income, excluding
investment securities gain, net, and asset sales gains, net.
(a) Does not include guaranteed student loans. Guaranteed student
loans 90+ days past due and still accruing totaled $20.1 million
as of March 31, 2001.
----------------------------------------------------------------------
Financial Summary and Comparison
Associated Banc-Corp Three months ended
March 31,
--------------------------------
(in thousands, except
per share data) 2001 2000 % Change
------------------------------ ---------------------------------------
Summary of Operations
Interest income $ 233,679 $ 222,773 4.9
Interest expense 136,676 124,424 9.8
Net interest income 97,003 98,349 (1.4)
Provision for loan losses 5,582 5,715 (2.3)
Net interest income
after provision
for loan losses 91,421 92,634 (1.3)
Investment securities
gains (losses) 246 (1,702) (114.5)
Noninterest income
(excluding securities gains) 44,073 47,646 (7.5)
Noninterest expense 78,450 78,611 (0.2)
Income taxes 15,204 16,886 (10.0)
Net income 42,086 43,081 (2.3)
Taxable equivalent adjustment 5,601 4,717 18.7
------------------------------ ---------------------------------------
At Period End
Assets $ 13,122,386 $ 12,734,620 3.0
Earning assets 12,336,663 11,877,539 3.9
Loans 8,935,543 8,589,984 4.0
Allowance for loan losses 123,668 116,297 6.3
Deposits 8,687,691 9,197,784 (5.5)
Stockholders' equity 1,023,978 920,788 11.2
----------------------------- ---------------------------------------
Average Balances
Assets $ 13,014,503 $ 12,572,527 3.5
Earning assets 12,197,015 11,841,910 3.0
Interest-bearing liabilities 10,805,833 10,540,529 2.5
Loans 8,985,659 8,459,281 6.2
Deposits 8,788,540 8,631,256 1.8
Stockholders' equity 993,284 896,540 10.8
Stockholders' equity / assets 7.63% 7.13%
----------------------------- ----------------------------------------
Per Common Share Data
Net income:
Basic $ 0.64 $ 0.62 3.2
Diluted 0.63 0.62 1.6
Cash diluted 0.66 0.65 1.5
Dividends 0.2900 0.2636 10.0
Market Value:
High $ 36.19 $ 30.06 20.4
Low 29.75 20.29 46.6
Close 33.25 27.16 22.4
Book value 15.48 13.30 16.4
Shares outstanding,
end of period (000) 66,135 69,229 (4.5)
----------------------------- ----------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE) 3.34% 3.46%
Return on average assets 1.31 1.38
Return on average equity 17.18 19.33
Efficiency ratio 53.68 55.19
Expense ratio 1.14 1.05
Effective tax rate 26.54 28.16
Dividend payout ratio (basic) 45.31 42.52
----------------------------- ----------------------------------------
Per share data adjusted retroactively for stock splits and stock
dividends.
Cash diluted EPS excludes the after-tax effect of the amortization
of goodwill related intangibles in net income.
Efficiency ratio = Noninterest expense divided by sum of taxable
equivalent net interest income plus noninterest income, excluding
investment securities gain, net, and asset sales gains, net.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion