Associated Banc-Corp (NASDAQ: ASBC):
- $500 million common stock offering results in tangible common equity ratio of 7.73% compared to 5.79% at December 31, 2009
- At March 31, 2010, the Company’s Tier 1 capital to total average assets ratio was 10.57% and total capital to risk-weighted assets ratio was 18.15%
- Provision for loan losses of $165.3 million, with net charge offs of $163.3 million
- Net loss to common shareholders of $33.8 million, or $0.20 per share, for the quarter ended March 31, 2010
Associated Banc-Corp (NASDAQ: ASBC) today reported a net loss to common shareholders of $33.8 million, or $0.20 per common share, for the quarter ended March 31, 2010. This compares to net income of $35.4 million, or $0.28 per common share, for the quarter ended March 31, 2009.
On January 15, 2010, the Company completed a $500 million common equity offering, resulting in a net increase in the Company’s equity capital of approximately $478 million and a 44.8 million increase in the number of common shares outstanding. As a result of the successful capital raise, the Company’s tangible common equity ratio was 7.73% at March 31, 2010 compared to 5.79% at December 31, 2009.
At March 31, 2010, the Company’s Tier 1 capital to total average assets ratio was 10.57% and total capital to risk-weighted assets ratio was 18.15%. These capital ratios far exceed the criteria for “well capitalized” banks and requirements by banking regulators.
“Our successful capital raise during the quarter positions our company well and provides us with additional flexibility as we manage through this credit cycle and focus on our strategic priorities,” said President and CEO Philip B. Flynn. “As anticipated, first quarter results were impacted by our continuing efforts to address our credit challenges, particularly in the construction and commercial real estate segments of our loan portfolio.”
CREDIT QUALITY
Credit-related charges of $165.7 million for the first quarter of 2010 were down from $405.3 million for the fourth quarter of 2009. First quarter credit-related charges were comprised of a $165.3 million provision for loan losses and a $0.4 million increase in the reserve for losses on unfunded commitments. Net charge offs for the quarter were $163.3 million. This compares to net charge offs of $233.8 million for the fourth quarter of 2009.
Total nonperforming loans increased $88.1 million during the quarter to $1.210 billion at March 31, 2010, with commercial real estate and construction-related nonperforming loans increasing $123.6 million to $844.4 million. Potential problem loans declined $227.8 million during the quarter to $1.368 billion at March 31, 2010, with potential problem loans in the commercial real estate and construction segments of the Company’s loan portfolio declining $160.7 million to $828.5 million.
The Company’s allowance for loan losses rose to $575.6 million, or 4.33% of total loans, at March 31, 2010 primarily due to an $829.3 million decline in the Company’s loan portfolio balance during the quarter. This compares to an allowance for loan losses as a percent of total loans of 4.06% at December 31, 2009 and 1.97% at March 31, 2009.
LOANS AND DEPOSITS
At March 31, 2010, the Company’s loan portfolio was $13.3 billion, down 5.9% from $14.1 billion at December 31, 2009, and down 16.5% from $15.9 billion at March 31, 2009, as declines were experienced in all segments of the portfolio during the first quarter of 2010.
Total deposits were $17.5 billion at March 31, 2010, up 4.6% from $16.7 billion at December 31, 2009, and up 10.2% from $15.9 billion at March 31, 2009. During the first quarter of 2010, a combined decrease of $411.7 million occurred in interest bearing and noninterest bearing demand accounts, which was more than offset by a $716.2 million increase in money market deposits, primarily from institutional depositors, and a $600.2 million increase in brokered CDs. This compares to a $1.3 billion combined increase in interest-bearing and noninterest demand account balances and a $1.1 billion increase in money market deposits year-over-year, which were offset by a $839.5 million decline in time deposit (brokered and customer combined) balances.
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income for the first quarter ended March 31, 2010 was $169.2 million compared to $178.4 million for the fourth quarter of 2009 and $189.3 million for the first quarter of 2009. The Company’s net interest margin was 3.35% for the first quarter 2010, down 24 basis points from 3.59% for both the quarter ended December 31, 2009 and quarter ended March 31, 2009. The net interest margin was impacted by two factors during the quarter. First, an increase in the Company’s liquidity position resulted in a 19 basis point reduction in net interest margin during the quarter. Second, increased levels of nonaccrual loans for the quarter resulted in a 4 basis point reduction in the net interest margin.
NONINTEREST INCOME AND EXPENSE
Noninterest income for the quarter ended March 31, 2010 was $98.0 million, up $13.3 million from $84.7 million for the fourth quarter of 2009, and up $9.0 million from $89.0 million for the first quarter of 2009. The increase from the quarter ended December 31, 2009 was primarily due to a $23.6 million gain on the sale of $538.3 million of investment securities during the first quarter of 2010, which was partially offset by a $4.7 million decline in core fee-based revenues and a $3.8 million decline in mortgage banking income. The increase over the first quarter 2009 was primarily due to a $13.0 million higher gain on sale of investments in the first quarter of 2010 compared to the first quarter of 2009.
Core fee-based revenue remained relatively strong at $62.1 million for the first quarter of 2010, compared to $66.8 million for the fourth quarter of 2009 and $61.4 million for the first quarter of 2009. The reduction in first quarter core fee-based revenue from the prior quarter was due to lower levels of consumer fee-based deposit activity, as overdraft and debit card fees declined a total of $4.2 million.
Mortgage loans originated for sale during the first quarter of 2010 were $454.7 million compared to $671.3 million for the fourth quarter of 2009, and a record $1.080 billion for the first quarter of 2009. Net mortgage banking income totaled $5.4 million for the first quarter of 2010, down $3.8 million from the fourth quarter of 2009, and up $1.1 million from the first quarter of 2009. First quarter 2010 net mortgage banking income included a $0.9 million valuation recovery related to mortgage servicing rights, compared to a valuation recovery of $0.7 million in the fourth quarter of 2009, and a $12.3 million valuation charge in the first quarter of 2009.
Total noninterest expense for the first quarter of 2010 was $151.9 million, down $7.1 million from $159.0 million in the fourth quarter of 2009, and up $10.6 million from $141.3 million in the first quarter of 2009. The decrease over the fourth quarter of 2009 was primarily due to a $0.4 million increase in the reserve for unfunded commitments in the first quarter of 2010 compared to $10.5 million in the fourth quarter of 2009. Personnel expenses increased $6.7 million over the prior quarter due to the resetting of payroll tax and incentive accruals, and $2.2 million increase in FDIC expense on higher deposit balances. These increases were offset by decreases in several other expense categories, most notably in legal and professional fees, which were down $3.6 million, and foreclosure/OREO costs, down $3.1 million from the prior quarter. The $10.6 million increase over the first quarter of 2009 was mainly due to $6.1 million higher FDIC expense, and $2.7 million higher foreclosure/OREO costs.
CONFERENCE CALL
Senior management will host a conference call for investors and analysts at 4 p.m. Central Time (CT) on Thursday, April 22, 2010. The toll-free dial-in number for the live call is 877-941-4774. The number for international callers is 480-629-9760. Participants should ask the operator for the Associated Banc-Corp first quarter 2010 earnings call, or for call ID number 4277482. A replay of the call will be available starting at 7 p.m. CT on April 22, 2010 through 11 p.m. CT on May 22, 2010 by calling 800-406-7325 domestically or 303-590-3030 internationally. The call ID number, 4277482, is required to access the replay.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $23 billion. Associated has 290 banking offices serving approximately 160 communities in Wisconsin, Illinois, 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, as defined in the Private Securities Litigation Reform Act 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 as updated by Form 10-Q for the three months ended March 31, 2010.
| Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||
| Associated Banc-Corp | |||||||||||||||||||
| March 31, | December 31, | Mar10 vs Dec09 | March 31, | Mar10 vs Mar09 | |||||||||||||||
| (in thousands) | 2010 | 2009 | % Change | 2009 | % Change | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 284,882 | $ | 770,816 | (63.0 | %) | $ | 378,645 | (24.8 | %) | |||||||||
Interest-bearing deposits in other financial institutions | 1,998,528 | 26,091 | N/M | 12,527 | N/M | ||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 19,220 | 23,785 | (19.2 | %) | 48,578 | (60.4 | %) | ||||||||||||
| Investment securities available for sale, at fair value | 5,267,372 | 5,835,533 | (9.7 | %) | 5,314,617 | (0.9 | %) | ||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 184,811 | 181,316 | 1.9 | % | 181,205 | 2.0 | % | ||||||||||||
| Loans held for sale | 274,003 | 81,238 | 237.3 | % | 355,077 | (22.8 | %) | ||||||||||||
| Loans | 13,299,321 | 14,128,625 | (5.9 | %) | 15,917,952 | (16.5 | %) | ||||||||||||
| Allowance for loan losses | (575,573 | ) | (573,533 | ) | 0.4 | % | (313,228 | ) | 83.8 | % | |||||||||
| Loans, net | 12,723,748 | 13,555,092 | (6.1 | %) | 15,604,724 | (18.5 | %) | ||||||||||||
| Premises and equipment, net | 183,401 | 186,564 | (1.7 | %) | 187,685 | (2.3 | %) | ||||||||||||
| Goodwill | 929,168 | 929,168 | 0.0 | % | 929,168 | 0.0 | % | ||||||||||||
| Other intangible assets, net | 91,991 | 92,807 | (0.9 | %) | 72,965 | 26.1 | % | ||||||||||||
| Other assets | 1,150,512 | 1,191,732 | (3.5 | %) | 1,264,534 | (9.0 | %) | ||||||||||||
| Total assets | $ | 23,107,636 | $ | 22,874,142 | 1.0 | % | $ | 24,349,725 | (5.1 | %) | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 3,023,247 | $ | 3,274,973 | (7.7 | %) | $ | 2,818,088 | 7.3 | % | |||||||||
| Interest-bearing deposits, excluding Brokered CDs | 13,731,421 | 13,311,672 | 3.2 | % | 12,132,610 | 13.2 | % | ||||||||||||
| Brokered CDs | 742,119 | 141,968 | 422.7 | % | 922,491 | (19.6 | %) | ||||||||||||
| Total deposits | 17,496,787 | 16,728,613 | 4.6 | % | 15,873,189 | 10.2 | % | ||||||||||||
| Short-term borrowings | 575,564 | 1,226,853 | (53.1 | %) | 3,365,130 | (82.9 | %) | ||||||||||||
| Long-term funding | 1,643,979 | 1,953,998 | (15.9 | %) | 1,961,604 | (16.2 | %) | ||||||||||||
| Accrued expenses and other liabilities | 210,797 | 226,070 | (6.8 | %) | 252,633 | (16.6 | %) | ||||||||||||
| Total liabilities | 19,927,127 | 20,135,534 | (1.0 | %) | 21,452,556 | (7.1 | %) | ||||||||||||
| Stockholders' Equity | |||||||||||||||||||
| Preferred equity | 511,910 | 511,107 | 0.2 | % | 508,766 | 0.6 | % | ||||||||||||
| Common stock | 1,737 | 1,284 | 35.3 | % | 1,284 | 35.3 | % | ||||||||||||
| Surplus | 1,564,536 | 1,082,335 | 44.6 | % | 1,075,598 | 45.5 | % | ||||||||||||
| Retained earnings | 1,044,501 | 1,081,156 | (3.4 | %) | 1,287,687 | (18.9 | %) | ||||||||||||
| Accumulated other comprehensive income | 59,744 | 63,432 | (5.8 | %) | 23,931 | 149.7 | % | ||||||||||||
| Treasury stock | (1,919 | ) | (706 | ) | N/M | (97 | ) | N/M | |||||||||||
| Total stockholders' equity | 3,180,509 | 2,738,608 | 16.1 | % | 2,897,169 | 9.8 | % | ||||||||||||
| Total liabilities and stockholders' equity | $ | 23,107,636 | $ | 22,874,142 | 1.0 | % | $ | 24,349,725 | (5.1 | %) | |||||||||
| N/M = Not meaningful. | |||||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||
| Associated Banc-Corp | ||||||||||||
| For The Three Months Ended | ||||||||||||
| March 31, | Quarter | |||||||||||
| (in thousands, except per share amounts) | 2010 | 2009 | % Change | |||||||||
| Interest Income | ||||||||||||
| Interest and fees on loans | $ | 159,291 | $ | 202,025 | (21.2 | %) | ||||||
Interest and dividends on investment securities and deposits in other financial institutions: | ||||||||||||
| Taxable | 47,918 | 50,903 | (5.9 | %) | ||||||||
| Tax-exempt | 8,709 | 9,494 | (8.3 | %) | ||||||||
Interest on federal funds sold and securities purchased under agreements to resell | 22 | 63 | (65.1 | %) | ||||||||
| Total interest income | 215,940 | 262,485 | (17.7 | %) | ||||||||
| Interest Expense | ||||||||||||
| Interest on deposits | 28,745 | 46,599 | (38.3 | %) | ||||||||
| Interest on short-term borrowings | 2,026 | 5,154 | (60.7 | %) | ||||||||
| Interest on long-term funding | 15,947 | 21,454 | (25.7 | %) | ||||||||
| Total interest expense | 46,718 | 73,207 | (36.2 | %) | ||||||||
| Net Interest Income | 169,222 | 189,278 | (10.6 | %) | ||||||||
| Provision for loan losses | 165,345 | 105,424 | 56.8 | % | ||||||||
Net interest income after provision for loan losses | 3,877 | 83,854 | (95.4 | %) | ||||||||
| Noninterest Income | ||||||||||||
| Trust service fees | 9,356 | 8,477 | 10.4 | % | ||||||||
| Service charges on deposit accounts | 26,059 | 27,205 | (4.2 | %) | ||||||||
| Card-based and other nondeposit fees | 10,820 | 10,174 | 6.3 | % | ||||||||
| Retail commissions | 15,817 | 15,512 | 2.0 | % | ||||||||
| Mortgage banking, net | 5,407 | 4,267 | 26.7 | % | ||||||||
| Capital market fees, net | 130 | 2,626 | (95.0 | %) | ||||||||
| Bank owned life insurance income | 3,256 | 5,772 | (43.6 | %) | ||||||||
| Asset sale losses, net | (1,641 | ) | (1,107 | ) | 48.2 | % | ||||||
| Investment securities gains, net | 23,581 | 10,596 | 122.5 | % | ||||||||
| Other | 5,253 | 5,455 | (3.7 | %) | ||||||||
| Total noninterest income | 98,038 | 88,977 | 10.2 | % | ||||||||
| Noninterest Expense | ||||||||||||
| Personnel expense | 79,355 | 77,098 | 2.9 | % | ||||||||
| Occupancy | 13,175 | 12,881 | 2.3 | % | ||||||||
| Equipment | 4,385 | 4,589 | (4.4 | %) | ||||||||
| Data processing | 7,299 | 7,597 | (3.9 | %) | ||||||||
| Business development and advertising | 4,445 | 4,737 | (6.2 | %) | ||||||||
| Other intangible amortization | 1,253 | 1,386 | (9.6 | %) | ||||||||
| Legal and professional fees | 2,795 | 4,241 | (34.1 | %) | ||||||||
| Foreclosure/OREO expense | 7,729 | 5,013 | 54.2 | % | ||||||||
| FDIC expense | 11,829 | 5,775 | 104.8 | % | ||||||||
| Other | 19,594 | 17,947 | 9.2 | % | ||||||||
| Total noninterest expense | 151,859 | 141,264 | 7.5 | % | ||||||||
| Income (loss) before income taxes | (49,944 | ) | 31,567 | (258.2 | %) | |||||||
| Income tax benefit | (23,555 | ) | (11,158 | ) | 111.1 | % | ||||||
| Net income (loss) | (26,389 | ) | 42,725 | (161.8 | %) | |||||||
| Preferred stock dividends and discount | 7,365 | 7,321 | 0.6 | % | ||||||||
| Net income (loss) available to common equity | $ | (33,754 | ) | $ | 35,404 | (195.3 | %) | |||||
| Earnings (Loss) Per Common Share: | ||||||||||||
| Basic | $ | (0.20 | ) | $ | 0.28 | (171.4 | %) | |||||
| Diluted | $ | (0.20 | ) | $ | 0.28 | (171.4 | %) | |||||
| Average Common Shares Outstanding: | ||||||||||||
| Basic | 165,842 | 127,839 | 29.7 | % | ||||||||
| Diluted | 165,842 | 127,845 | 29.7 | % | ||||||||
| Consolidated Statements of Income (Unaudited) - Quarterly Trend | |||||||||||||||||||||
| Associated Banc-Corp | |||||||||||||||||||||
| (in thousands, except per share amounts) | 1Q10 | 4Q09 | 3Q09 | 2Q09 | 1Q09 | ||||||||||||||||
| Interest Income | |||||||||||||||||||||
| Interest and fees on loans | $ | 159,291 | $ | 172,624 | $ | 183,264 | $ | 194,352 | $ | 202,025 | |||||||||||
Interest and dividends on investment securities and deposits in other financial institutions: | |||||||||||||||||||||
| Taxable | 47,918 | 48,567 | 46,873 | 46,688 | 50,903 | ||||||||||||||||
| Tax-exempt | 8,709 | 8,987 | 8,498 | 8,819 | 9,494 | ||||||||||||||||
Interest on federal funds sold and securities purchased under agreements to resell | 22 | 32 | 16 | 51 | 63 | ||||||||||||||||
| Total interest income | 215,940 | 230,210 | 238,651 | 249,910 | 262,485 | ||||||||||||||||
| Interest Expense | |||||||||||||||||||||
| Interest on deposits | 28,745 | 31,471 | 37,811 | 44,993 | 46,599 | ||||||||||||||||
| Interest on short-term borrowings | 2,026 | 3,062 | 2,895 | 5,088 | 5,154 | ||||||||||||||||
| Interest on long-term funding | 15,947 | 17,324 | 18,709 | 20,691 | 21,454 | ||||||||||||||||
| Total interest expense | 46,718 | 51,857 | 59,415 | 70,772 | 73,207 | ||||||||||||||||
| Net Interest Income | 169,222 | 178,353 | 179,236 | 179,138 | 189,278 | ||||||||||||||||
| Provision for loan losses | 165,345 | 394,789 | 95,410 | 155,022 | 105,424 | ||||||||||||||||
Net interest income (loss) after provision for loan losses | 3,877 | (216,436 | ) | 83,826 | 24,116 | 83,854 | |||||||||||||||
| Noninterest Income | |||||||||||||||||||||
| Trust service fees | 9,356 | 9,906 | 9,057 | 8,569 | 8,477 | ||||||||||||||||
| Service charges on deposit accounts | 26,059 | 29,213 | 30,829 | 29,671 | 27,205 | ||||||||||||||||
| Card-based and other nondeposit fees | 10,820 | 12,359 | 11,586 | 11,858 | 10,174 | ||||||||||||||||
| Retail commissions | 15,817 | 15,296 | 15,041 | 14,829 | 15,512 | ||||||||||||||||
| Total core fee-based revenue | 62,052 | 66,774 | 66,513 | 64,927 | 61,368 | ||||||||||||||||
| Mortgage banking, net | 5,407 | 9,227 | (909 | ) | 28,297 | 4,267 | |||||||||||||||
| Capital market fees, net | 130 | 291 | 226 | 2,393 | 2,626 | ||||||||||||||||
| Bank owned life insurance income | 3,256 | 3,310 | 3,789 | 3,161 | 5,772 | ||||||||||||||||
| Asset sale losses, net | (1,641 | ) | (1,551 | ) | (126 | ) | (1,287 | ) | (1,107 | ) | |||||||||||
| Investment securities gains (losses), net | 23,581 | (395 | ) | (42 | ) | (1,385 | ) | 10,596 | |||||||||||||
| Other | 5,253 | 7,078 | 5,858 | 5,835 | 5,455 | ||||||||||||||||
| Total noninterest income | 98,038 | 84,734 | 75,309 | 101,941 | 88,977 | ||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||
| Personnel expense | 79,355 | 72,620 | 73,501 | 81,171 | 77,098 | ||||||||||||||||
| Occupancy | 13,175 | 12,170 | 11,949 | 12,341 | 12,881 | ||||||||||||||||
| Equipment | 4,385 | 4,551 | 4,575 | 4,670 | 4,589 | ||||||||||||||||
| Data processing | 7,299 | 7,728 | 7,442 | 8,126 | 7,597 | ||||||||||||||||
| Business development and advertising | 4,445 | 4,443 | 3,910 | 4,943 | 4,737 | ||||||||||||||||
| Other intangible amortization | 1,253 | 1,386 | 1,386 | 1,385 | 1,386 | ||||||||||||||||
| Legal and professional fees | 2,795 | 6,386 | 3,349 | 5,586 | 4,241 | ||||||||||||||||
| Foreclosure/OREO expense | 7,729 | 10,852 | 8,688 | 13,576 | 5,013 | ||||||||||||||||
| FDIC expense | 11,829 | 9,618 | 8,451 | 18,090 | 5,775 | ||||||||||||||||
| Other | 19,594 | 29,260 | 17,860 | 20,143 | 17,947 | ||||||||||||||||
| Total noninterest expense | 151,859 | 159,014 | 141,111 | 170,031 | 141,264 | ||||||||||||||||
| Income (loss) before income taxes | (49,944 | ) | (290,716 | ) | 18,024 | (43,974 | ) | 31,567 | |||||||||||||
| Income tax expense (benefit) | (23,555 | ) | (117,479 | ) | 2,030 | (26,633 | ) | (11,158 | ) | ||||||||||||
| Net income (loss) | (26,389 | ) | (173,237 | ) | 15,994 | (17,341 | ) | 42,725 | |||||||||||||
| Preferred stock dividends and discount | 7,365 | 7,354 | 7,342 | 7,331 | 7,321 | ||||||||||||||||
| Net income (loss) available to common equity | $ | (33,754 | ) | $ | (180,591 | ) | $ | 8,652 | $ | (24,672 | ) | $ | 35,404 | ||||||||
| Earnings (Loss) Per Common Share: | |||||||||||||||||||||
| Basic | $ | (0.20 | ) | $ | (1.41 | ) | $ | 0.07 | $ | (0.19 | ) | $ | 0.28 | ||||||||
| Diluted | $ | (0.20 | ) | $ | (1.41 | ) | $ | 0.07 | $ | (0.19 | ) | $ | 0.28 | ||||||||
| Average Common Shares Outstanding: | |||||||||||||||||||||
| Basic | 165,842 | 127,869 | 127,863 | 127,861 | 127,839 | ||||||||||||||||
| Diluted | 165,842 | 127,869 | 127,863 | 127,861 | 127,845 | ||||||||||||||||
| Selected Quarterly Information | |||||||||||||||||||||
| Associated Banc-Corp | |||||||||||||||||||||
| (in thousands, except per share and full time equivalent employee data) | 1st Qtr 2010 | 4th Qtr 2009 | 3rd Qtr 2009 | 2nd Qtr 2009 | 1st Qtr 2009 | ||||||||||||||||
| Summary of Operations | |||||||||||||||||||||
| Net interest income | $ | 169,222 | $ | 178,353 | $ | 179,236 | $ | 179,138 | $ | 189,278 | |||||||||||
| Provision for loan losses | 165,345 | 394,789 | 95,410 | 155,022 | 105,424 | ||||||||||||||||
| Asset sale losses, net | (1,641 | ) | (1,551 | ) | (126 | ) | (1,287 | ) | (1,107 | ) | |||||||||||
| Investment securities gains (losses), net | 23,581 | (395 | ) | (42 | ) | (1,385 | ) | 10,596 | |||||||||||||
| Noninterest income (excluding securities & asset gains) | 76,098 | 86,680 | 75,477 | 104,613 | 79,488 | ||||||||||||||||
| Noninterest expense | 151,859 | 159,014 | 141,111 | 170,031 | 141,264 | ||||||||||||||||
| Income (loss) before income taxes | (49,944 | ) | (290,716 | ) | 18,024 | (43,974 | ) | 31,567 | |||||||||||||
| Income tax expense (benefit) | (23,555 | ) | (117,479 | ) | 2,030 | (26,633 | ) | (11,158 | ) | ||||||||||||
| Net income (loss) | (26,389 | ) | (173,237 | ) | 15,994 | (17,341 | ) | 42,725 | |||||||||||||
| Net income (loss) available to common equity | (33,754 | ) | (180,591 | ) | 8,652 | (24,672 | ) | 35,404 | |||||||||||||
| Taxable equivalent adjustment | 6,034 | 6,188 | 5,938 | 6,150 | 6,544 | ||||||||||||||||
| Per Common Share Data | |||||||||||||||||||||
| Net income (loss): | |||||||||||||||||||||
| Basic | $ | (0.20 | ) | $ | (1.41 | ) | $ | 0.07 | $ | (0.19 | ) | $ | 0.28 | ||||||||
| Diluted | (0.20 | ) | (1.41 | ) | 0.07 | (0.19 | ) | 0.28 | |||||||||||||
| Dividends | 0.01 | 0.05 | 0.05 | 0.05 | 0.32 | ||||||||||||||||
| Market Value: | |||||||||||||||||||||
| High | $ | 14.54 | $ | 13.00 | $ | 12.67 | $ | 19.00 | $ | 21.39 | |||||||||||
| Low | 11.48 | 10.37 | 9.21 | 12.50 | 10.60 | ||||||||||||||||
| Close | 13.76 | 11.01 | 11.42 | 12.50 | 15.45 | ||||||||||||||||
| Book value | 15.44 | 17.42 | 18.88 | 18.49 | 18.68 | ||||||||||||||||
| Tangible book value | 9.90 | 9.93 | 11.38 | 10.97 | 11.15 | ||||||||||||||||
| Performance Ratios (annualized) | |||||||||||||||||||||
| Earning assets yield | 4.24 | % | 4.59 | % | 4.62 | % | 4.70 | % | 4.94 | % | |||||||||||
| Interest-bearing liabilities rate | 1.11 | 1.24 | 1.36 | 1.57 | 1.61 | ||||||||||||||||
| Net interest margin | 3.35 | 3.59 | 3.50 | 3.40 | 3.59 | ||||||||||||||||
| Return on average assets | (0.46 | ) | (3.02 | ) | 0.27 | (0.29 | ) | 0.71 | |||||||||||||
| Return on average equity | (3.40 | ) | (23.72 | ) | 2.19 | (2.40 | ) | 5.98 | |||||||||||||
| Return on average tangible common equity (1) | (8.17 | ) | (50.16 | ) | 2.39 | (6.88 | ) | 10.05 | |||||||||||||
| Efficiency ratio (2) | 60.42 | 58.63 | 54.14 | 58.65 | 51.31 | ||||||||||||||||
| Effective tax rate (benefit) | (47.16 | ) | (40.41 | ) | 11.26 | (60.57 | ) | (35.35 | ) | ||||||||||||
| Dividend payout ratio (3) | N/M | N/M | 71.43 | N/M | 114.29 | ||||||||||||||||
| Average Balances | |||||||||||||||||||||
| Assets | $ | 23,151,767 | $ | 22,773,576 | $ | 23,362,954 | $ | 24,064,567 | $ | 24,255,783 | |||||||||||
| Earning assets | 21,075,408 | 20,499,225 | 21,063,016 | 21,847,267 | 21,959,077 | ||||||||||||||||
| Interest-bearing liabilities | 16,970,884 | 16,663,947 | 17,412,341 | 18,125,389 | 18,457,879 | ||||||||||||||||
| Loans | 13,924,978 | 14,605,107 | 15,248,895 | 16,122,063 | 16,430,347 | ||||||||||||||||
| Deposits | 17,143,924 | 16,407,034 | 16,264,181 | 16,100,686 | 15,045,976 | ||||||||||||||||
| Wholesale funding | 2,837,001 | 3,332,642 | 4,067,830 | 4,876,970 | 6,098,266 | ||||||||||||||||
| Common stockholders' equity | 2,633,680 | 2,387,534 | 2,394,410 | 2,400,664 | 2,391,325 | ||||||||||||||||
| Stockholders' equity | 3,145,074 | 2,898,132 | 2,904,210 | 2,909,700 | 2,899,603 | ||||||||||||||||
| Common stockholders' equity/assets | 11.38 | % | 10.48 | % | 10.25 | % | 9.98 | % | 9.86 | % | |||||||||||
| Stockholders' equity / assets | 13.58 | % | 12.73 | % | 12.43 | % | 12.09 | % | 11.95 | % | |||||||||||
| At Period End | |||||||||||||||||||||
| Assets | $ | 23,107,636 | $ | 22,874,142 | $ | 22,881,527 | $ | 24,013,567 | $ | 24,349,725 | |||||||||||
| Loans | 13,299,321 | 14,128,625 | 14,765,597 | 15,310,107 | 15,917,952 | ||||||||||||||||
| Allowance for loan losses | 575,573 | 573,533 | 412,530 | 407,167 | 313,228 | ||||||||||||||||
| Goodwill | 929,168 | 929,168 | 929,168 | 929,168 | 929,168 | ||||||||||||||||
| Mortgage servicing rights at fair value, net | 64,190 | 63,753 | 61,066 | 59,762 | 39,754 | ||||||||||||||||
| Other intangible assets | 27,801 | 29,054 | 30,440 | 31,826 | 33,211 | ||||||||||||||||
| Deposits | 17,496,787 | 16,728,613 | 16,446,109 | 16,320,391 | 15,873,189 | ||||||||||||||||
| Wholesale funding | 2,219,543 | 3,180,851 | 3,279,100 | 4,474,542 | 5,326,734 | ||||||||||||||||
| Stockholders' equity | 3,180,509 | 2,738,608 | 2,924,659 | 2,873,768 | 2,897,169 | ||||||||||||||||
| Stockholders' equity / assets | 13.76 | % | 11.97 | % | 12.78 | % | 11.97 | % | 11.90 | % | |||||||||||
| Tangible common equity / tangible assets (4) | 7.73 | % | 5.79 | % | 6.64 | % | 6.09 | % | 6.10 | % | |||||||||||
| Tangible equity/tangible assets (5) | 10.04 | % | 8.12 | % | 8.96 | % | 8.30 | % | 8.27 | % | |||||||||||
| Tier 1 risk-based capital ratio | 16.40 | % | 12.52 | % | 13.14 | % | 12.45 | % | 11.93 | % | |||||||||||
| Tier 1 leverage ratio | 10.57 | % | 8.76 | % | 9.35 | % | 9.06 | % | 9.06 | % | |||||||||||
| Total risk-based capital ratio | 18.15 | % | 14.24 | % | 14.83 | % | 14.35 | % | 13.79 | % | |||||||||||
| Shares outstanding, end of period | 172,880 | 127,876 | 127,864 | 127,861 | 127,860 | ||||||||||||||||
| Selected trend information | |||||||||||||||||||||
| Average full time equivalent employees | 4,777 | 4,802 | 5,004 | 5,116 | 5,143 | ||||||||||||||||
| Trust assets under management, at market value | $ | 5,500,000 | $ | 5,300,000 | $ | 5,200,000 | $ | 5,000,000 | $ | 4,800,000 | |||||||||||
| Mortgage loans originated for sale during period | 454,746 | 671,305 | 638,229 | 1,335,175 | 1,079,732 | ||||||||||||||||
| Mortgage portfolio serviced for others | 7,751,000 | 7,667,000 | 7,473,000 | 6,904,000 | 6,582,000 | ||||||||||||||||
| Mortgage servicing rights, net / Portfolio serviced for others | 0.83 | % | 0.83 | % | 0.82 | % | 0.87 | % | 0.60 | % | |||||||||||
| N/M = Not meaningful. | |||||||||||||||||||||
| (1) Return on average tangible common equity = Net income available to common equity divided by average common equity excluding average goodwill and other intangible assets. This is a non-GAAP financial measure. | |||||||||||||||||||||
| (2) 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. | |||||||||||||||||||||
| This is a non-GAAP financial measure. | |||||||||||||||||||||
| (3) Ratio is based upon basic earnings per common share. | |||||||||||||||||||||
| (4) Tangible common equity to tangible assets = Common stockholders' equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. | |||||||||||||||||||||
| This is a non-GAAP financial measure. | |||||||||||||||||||||
| (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. | |||||||||||||||||||||
| Selected Asset Quality Information | |||||||||||||||||||||||||||
| Associated Banc-Corp | |||||||||||||||||||||||||||
| Mar10 vs Dec09 | Mar10 vs Mar09 | ||||||||||||||||||||||||||
| (in thousands) | Mar 31, 2010 | Dec 31, 2009 | % Change | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | % Change | ||||||||||||||||||||
| Allowance for Loan Losses | |||||||||||||||||||||||||||
| Beginning balance | $ | 573,533 | $ | 412,530 | 39.0 | % | $ | 407,167 | $ | 313,228 | $ | 265,378 | 116.1 | % | |||||||||||||
| Provision for loan losses | 165,345 | 394,789 | (58.1 | %) | 95,410 | 155,022 | 105,424 | 56.8 | % | ||||||||||||||||||
| Charge offs | (174,627 | ) | (236,367 | ) | (26.1 | %) | (92,340 | ) | (63,325 | ) | (60,174 | ) | 190.2 | % | |||||||||||||
| Recoveries | 11,322 | 2,581 | 338.7 | % | 2,293 | 2,242 | 2,600 | 335.5 | % | ||||||||||||||||||
| Net charge offs | (163,305 | ) | (233,786 | ) | (30.1 | %) | (90,047 | ) | (61,083 | ) | (57,574 | ) | 183.6 | % | |||||||||||||
| Ending balance | $ | 575,573 | $ | 573,533 | 0.4 | % | $ | 412,530 | $ | 407,167 | $ | 313,228 | 83.8 | % | |||||||||||||
| Net Charge Offs | Mar10 vs Dec09 | Mar10 vs Mar09 | |||||||||||||||||||||||||
| Mar 31, 2010 | Dec 31, 2009 | % Change | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | % Change | |||||||||||||||||||||
| Commercial, financial & agricultural | $ | 63,699 | $ | 42,940 | 48.3 | % | $ | 57,480 | $ | 19,367 | $ | 35,890 | 77.5 | % | |||||||||||||
| Commercial real estate | 21,328 | 40,550 | (47.4 | %) | 4,449 | 8,382 | 2,858 | 646.3 | % | ||||||||||||||||||
| Real estate - construction | 60,186 | 124,659 | (51.7 | %) | 12,837 | 16,249 | 3,452 | N/M | |||||||||||||||||||
| Lease financing | 774 | 261 | 196.6 | % | 319 | 988 | 2 | N/M | |||||||||||||||||||
| Total commercial | 145,987 | 208,410 | (30.0 | %) | 75,085 | 44,986 | 42,202 | 245.9 | % | ||||||||||||||||||
| Home equity | 11,769 | 16,503 | (28.7 | %) | 11,202 | 10,343 | 10,742 | 9.6 | % | ||||||||||||||||||
| Installment | 2,222 | 2,099 | 5.9 | % | 2,433 | 2,321 | 1,986 | 11.9 | % | ||||||||||||||||||
| Total retail | 13,991 | 18,602 | (24.8 | %) | 13,635 | 12,664 | 12,728 | 9.9 | % | ||||||||||||||||||
| Residential mortgage | 3,327 | 6,774 | (50.9 | %) | 1,327 | 3,433 | 2,644 | 25.8 | % | ||||||||||||||||||
| Total net charge offs | $ | 163,305 | $ | 233,786 | (30.1 | %) | $ | 90,047 | $ | 61,083 | $ | 57,574 | 183.6 | % | |||||||||||||
| Net Charge Offs to Average Loans | |||||||||||||||||||||||||||
| Mar 31, 2010 | Dec 31, 2009 | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | |||||||||||||||||||||||
| Commercial, financial & agricultural | 7.95 | % | 4.90 | % | 6.11 | % | 1.91 | % | 3.41 | % | |||||||||||||||||
| Commercial real estate | 2.30 | % | 4.12 | % | 0.45 | % | 0.92 | % | 0.32 | % | |||||||||||||||||
| Real estate - construction | 17.80 | % | 31.85 | % | 2.85 | % | 3.07 | % | 0.62 | % | |||||||||||||||||
| Lease financing | 3.41 | % | 1.05 | % | 1.19 | % | 3.49 | % | 0.01 | % | |||||||||||||||||
| Total commercial | 6.98 | % | 9.15 | % | 3.13 | % | 1.82 | % | 1.67 | % | |||||||||||||||||
| Home equity | 1.90 | % | 2.54 | % | 1.70 | % | 1.52 | % | 1.53 | % | |||||||||||||||||
| Installment | 0.98 | % | 0.94 | % | 1.13 | % | 1.10 | % | 0.94 | % | |||||||||||||||||
| Total retail | 1.66 | % | 2.13 | % | 1.56 | % | 1.42 | % | 1.39 | % | |||||||||||||||||
| Residential mortgage | 0.67 | % | 1.27 | % | 0.23 | % | 0.53 | % | 0.43 | % | |||||||||||||||||
| Total net charge offs | 4.76 | % | 6.35 | % | 2.34 | % | 1.52 | % | 1.42 | % | |||||||||||||||||
| Credit Quality | Mar10 vs Dec09 | Mar10 vs Mar09 | |||||||||||||||||||||||||
| Mar 31, 2010 | Dec 31, 2009 | % Change | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | % Change | |||||||||||||||||||||
| Nonaccrual loans | $ | 1,180,185 | $ | 1,077,799 | 9.5 | % | $ | 845,320 | $ | 700,514 | $ | 433,246 | 172.4 | % | |||||||||||||
| Loans 90 or more days past due and still accruing | 6,353 | 24,981 | (74.6 | %) | 23,174 | 19,785 | 16,002 | (60.3 | %) | ||||||||||||||||||
| Restructured loans | 23,420 | 19,037 | 23.0 | % | 17,256 | 13,089 | 2,927 | N/M | |||||||||||||||||||
| Total nonperforming loans | 1,209,958 | 1,121,817 | 7.9 | % | 885,750 | 733,388 | 452,175 | 167.6 | % | ||||||||||||||||||
| Other real estate owned (OREO) | 62,220 | 68,441 | (9.1 | %) | 60,010 | 51,633 | 54,883 | 13.4 | % | ||||||||||||||||||
| Total nonperforming assets | $ | 1,272,178 | $ | 1,190,258 | 6.9 | % | $ | 945,760 | $ | 785,021 | $ | 507,058 | 150.9 | % | |||||||||||||
| Provision for loan losses | 165,345 | 394,789 | (58.1 | %) | 95,410 | 155,022 | 105,424 | 56.8 | % | ||||||||||||||||||
| Net charge offs | 163,305 | 233,786 | (30.1 | %) | 90,047 | 61,083 | 57,574 | 183.6 | % | ||||||||||||||||||
| Allowance for loan losses / loans | 4.33 | % | 4.06 | % | 2.79 | % | 2.66 | % | 1.97 | % | |||||||||||||||||
| Allowance for loan losses / nonperforming loans | 47.57 | 51.13 | 46.57 | 55.52 | 69.27 | ||||||||||||||||||||||
| Nonperforming loans / total loans | 9.10 | 7.94 | 6.00 | 4.79 | 2.84 | ||||||||||||||||||||||
| Nonperforming assets / total loans plus OREO | 9.52 | 8.38 | 6.38 | 5.11 | 3.17 | ||||||||||||||||||||||
| Nonperforming assets / total assets | 5.51 | 5.20 | 4.13 | 3.27 | 2.08 | ||||||||||||||||||||||
| Net charge offs / average loans (annualized) | 4.76 | 6.35 | 2.34 | 1.52 | 1.42 | ||||||||||||||||||||||
| Year-to-date net charge offs / average loans | 4.76 | 2.84 | 1.75 | 1.47 | 1.42 | ||||||||||||||||||||||
| Nonperforming loans by type: | |||||||||||||||||||||||||||
| Commercial, financial & agricultural | $ | 180,182 | $ | 234,418 | (23.1 | %) | $ | 209,843 | $ | 187,943 | $ | 102,257 | 76.2 | % | |||||||||||||
| Commercial real estate | 356,853 | 307,478 | 16.1 | % | 213,736 | 165,929 | 100,838 | 253.9 | % | ||||||||||||||||||
| Real estate - construction | 487,552 | 413,360 | 17.9 | % | 301,844 | 264,402 | 152,008 | 220.7 | % | ||||||||||||||||||
| Lease financing | 29,466 | 19,506 | 51.1 | % | 18,814 | 1,929 | 1,707 | N/M | |||||||||||||||||||
| Total commercial | 1,054,053 | 974,762 | 8.1 | % | 744,237 | 620,203 | 356,810 | 195.4 | % | ||||||||||||||||||
| Home equity | 47,231 | 44,257 | 6.7 | % | 45,905 | 38,474 | 35,224 | 34.1 | % | ||||||||||||||||||
| Installment | 7,059 | 7,577 | (6.8 | %) | 7,387 | 7,545 | 6,755 | 4.5 | % | ||||||||||||||||||
| Total retail | 54,290 | 51,834 | 4.7 | % | 53,292 | 46,019 | 41,979 | 29.3 | % | ||||||||||||||||||
| Residential mortgage | 101,615 | 95,221 | 6.7 | % | 88,221 | 67,166 | 53,386 | 90.3 | % | ||||||||||||||||||
| Total nonperforming loans | $ | 1,209,958 | $ | 1,121,817 | 7.9 | % | $ | 885,750 | $ | 733,388 | $ | 452,175 | 167.6 | % | |||||||||||||
| Loans past due 30-89 days | $ | 165,280 | $ | 240,755 | (31.3 | %) | $ | 175,492 | $ | 209,323 | $ | 245,854 | (32.8 | %) | |||||||||||||
| Potential Problem Loans | Mar10 vs Dec09 | Mar10 vs Mar09 | |||||||||||||||||||||||||
| Mar 31, 2010 | Dec 31, 2009 | % Change | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | % Change | |||||||||||||||||||||
| Commercial, financial & agricultural | $ | 505,903 | $ | 563,836 | (10.3 | %) | $ | 481,034 | $ | 428,550 | $ | 365,069 | 38.6 | % | |||||||||||||
| Commercial real estate | 565,969 | 598,137 | (5.4 | %) | 588,013 | 462,103 | 280,479 | 101.8 | % | ||||||||||||||||||
| Real estate - construction | 262,572 | 391,105 | (32.9 | %) | 462,029 | 481,467 | 347,968 | (24.5 | %) | ||||||||||||||||||
| Lease financing | 5,158 | 8,367 | (38.4 | %) | 9,572 | 24,934 | 2,938 | 75.6 | % | ||||||||||||||||||
| Total commercial | 1,339,602 | 1,561,445 | (14.2 | %) | 1,540,648 | 1,397,054 | 996,454 | 34.4 | % | ||||||||||||||||||
| Home equity | 7,446 | 13,400 | (44.4 | %) | 15,933 | 13,626 | 5,935 | 25.5 | % | ||||||||||||||||||
| Installment | 1,103 | 1,524 | (27.6 | %) | 1,908 | 1,043 | 1,132 | (2.6 | %) | ||||||||||||||||||
| Total retail | 8,549 | 14,924 | (42.7 | %) | 17,841 | 14,669 | 7,067 | 21.0 | % | ||||||||||||||||||
| Residential mortgage | 19,591 | 19,150 | 2.3 | % | 15,414 | 14,448 | 13,030 | 50.4 | % | ||||||||||||||||||
| Total potential problem loans | $ | 1,367,742 | $ | 1,595,519 | (14.3 | %) | $ | 1,573,903 | $ | 1,426,171 | $ | 1,016,551 | 34.5 | % | |||||||||||||
| N/M - Not meaningful. | |||||||||||||||||||||||||||
| Net Interest Income Analysis - Taxable Equivalent Basis | |||||||||||||||||||||
| Associated Banc-Corp | Three months ended March 31, 2010 | Three months ended March 31, 2009 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||||||||||
| (in thousands) | Balance | Income / Expense | Yield / Rate | Balance | Income / Expense | Yield / Rate | |||||||||||||||
| Earning assets: | |||||||||||||||||||||
| Loans: (1) (2) (3) | |||||||||||||||||||||
| Commercial | $ | 8,478,259 | $ | 89,895 | 4.29 | % | $ | 10,227,260 | $ | 116,664 | 4.62 | % | |||||||||
| Residential mortgage | 2,019,855 | 25,471 | 5.06 | 2,499,853 | 33,868 | 5.44 | |||||||||||||||
| Retail | 3,426,864 | 44,733 | 5.27 | 3,703,234 | 52,340 | 5.71 | |||||||||||||||
| Total loans | 13,924,978 | 160,099 | 4.65 | 16,430,347 | 202,872 | 4.99 | |||||||||||||||
| Investments and other | 7,150,430 | 61,875 | 3.46 | 5,528,730 | 66,157 | 4.79 | |||||||||||||||
| Total earning assets | 21,075,408 | 221,974 | 4.24 | 21,959,077 | 269,029 | 4.94 | |||||||||||||||
| Other assets, net | 2,076,359 | 2,296,706 | |||||||||||||||||||
| Total assets | $ | 23,151,767 | $ | 24,255,783 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Savings deposits | $ | 858,440 | $ | 250 | 0.12 | % | $ | 857,111 | $ | 322 | 0.15 | % | |||||||||
| Interest-bearing demand deposits | 2,920,510 | 1,779 | 0.25 | 1,699,989 | 829 | 0.20 | |||||||||||||||
| Money market deposits | 6,242,934 | 8,221 | 0.53 | 4,945,174 | 11,566 | 0.95 | |||||||||||||||
| Time deposits, excluding Brokered CDs | 3,451,638 | 17,453 | 2.05 | 3,993,154 | 30,056 | 3.05 | |||||||||||||||
| Total interest-bearing deposits, excluding Brokered CDs | 13,473,522 | 27,703 | 0.83 | 11,495,428 | 42,773 | 1.51 | |||||||||||||||
| Brokered CDs | 660,361 | 1,042 | 0.64 | 864,185 | 3,826 | 1.80 | |||||||||||||||
| Total interest-bearing deposits | 14,133,883 | 28,745 | 0.82 | 12,359,613 | 46,599 | 1.53 | |||||||||||||||
| Wholesale funding | 2,837,001 | 17,973 | 2.55 | 6,098,266 | 26,608 | 1.76 | |||||||||||||||
| Total interest-bearing liabilities | 16,970,884 | 46,718 | 1.11 | 18,457,879 | 73,207 | 1.61 | |||||||||||||||
| Noninterest-bearing demand deposits | 3,010,041 | 2,686,363 | |||||||||||||||||||
| Other liabilities | 25,768 | 211,938 | |||||||||||||||||||
| Stockholders' equity | 3,145,074 | 2,899,603 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 23,151,767 | $ | 24,255,783 | |||||||||||||||||
| Net interest income and rate spread (1) | $ | 175,256 | 3.13 | % | $ | 195,822 | 3.33 | % | |||||||||||||
| Net interest margin (1) | 3.35 | % | 3.59 | % | |||||||||||||||||
| Taxable equivalent adjustment | $ | 6,034 | $ | 6,544 | |||||||||||||||||
| Net Interest Income Analysis - Taxable Equivalent Basis | |||||||||||||||||||||
| Associated Banc-Corp | Three months ended March 31, 2010 | Three months ended December 31, 2009 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||||||||||
| (in thousands) | Balance | Income / Expense | Yield / Rate | Balance | Income / Expense | Yield / Rate | |||||||||||||||
| Earning assets: | |||||||||||||||||||||
| Loans: (1) (2) (3) | |||||||||||||||||||||
| Commercial | $ | 8,478,259 | $ | 89,895 | 4.29 | % | $ | 9,037,436 | $ | 100,124 | 4.40 | % | |||||||||
| Residential mortgage | 2,019,855 | 25,471 | 5.06 | 2,108,755 | 27,316 | 5.17 | |||||||||||||||
| Retail | 3,426,864 | 44,733 | 5.27 | 3,458,916 | 45,980 | 5.29 | |||||||||||||||
| Total loans | 13,924,978 | 160,099 | 4.65 | 14,605,107 | 173,420 | 4.72 | |||||||||||||||
| Investments and other | 7,150,430 | 61,875 | 3.46 | 5,894,118 | 62,978 | 4.27 | |||||||||||||||
| Total earning assets | 21,075,408 | 221,974 | 4.24 | 20,499,225 | 236,398 | 4.59 | |||||||||||||||
| Other assets, net | 2,076,359 | 2,274,351 | |||||||||||||||||||
| Total assets | $ | 23,151,767 | $ | 22,773,576 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Savings deposits | $ | 858,440 | $ | 250 | 0.12 | % | $ | 869,996 | $ | 344 | 0.16 | % | |||||||||
| Interest-bearing demand deposits | 2,920,510 | 1,779 | 0.25 | 2,605,242 | 1,630 | 0.25 | |||||||||||||||
| Money market deposits | 6,242,934 | 8,221 | 0.53 | 5,658,251 | 8,463 | 0.59 | |||||||||||||||
| Time deposits, excluding Brokered CDs | 3,451,638 | 17,453 | 2.05 | 3,671,087 | 20,215 | 2.18 | |||||||||||||||
| Total interest-bearing deposits, excluding Brokered CDs | 13,473,522 | 27,703 | 0.83 | 12,804,576 | 30,652 | 0.95 | |||||||||||||||
| Brokered CDs | 660,361 | 1,042 | 0.64 | 526,729 | 819 | 0.62 | |||||||||||||||
| Total interest-bearing deposits | 14,133,883 | 28,745 | 0.82 | 13,331,305 | 31,471 | 0.94 | |||||||||||||||
| Wholesale funding | 2,837,001 | 17,973 | 2.55 | 3,332,642 | 20,386 | 2.43 | |||||||||||||||
| Total interest-bearing liabilities | 16,970,884 | 46,718 | 1.11 | 16,663,947 | 51,857 | 1.24 | |||||||||||||||
| Noninterest-bearing demand deposits | 3,010,041 | 3,075,729 | |||||||||||||||||||
| Other liabilities | 25,768 | 135,768 | |||||||||||||||||||
| Stockholders' equity | 3,145,074 | 2,898,132 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 23,151,767 | $ | 22,773,576 | |||||||||||||||||
| Net interest income and rate spread (1) | $ | 175,256 | 3.13 | % | $ | 184,541 | 3.35 | % | |||||||||||||
| Net interest margin (1) | 3.35 | % | 3.59 | % | |||||||||||||||||
| Taxable equivalent adjustment | $ | 6,034 | $ | 6,188 | |||||||||||||||||
| (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. | |||||||||||||||||||||
| Financial Summary and Comparison | ||||||||||||||||||||||
| Associated Banc-Corp | ||||||||||||||||||||||
| Period End Loan Composition | Mar10 vs Dec09 | Mar10 vs Mar09 | ||||||||||||||||||||
| Mar 31, 2010 | Dec 31, 2009 | % Change | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | % Change | ||||||||||||||||
| Commercial, financial & agricultural | $ | 3,099,265 | $ | 3,450,632 | (10.2 | %) | $ | 3,613,457 | $ | 3,904,925 | $ | 4,160,274 | (25.5 | %) | ||||||||
| Commercial real estate | 3,699,139 | 3,817,066 | (3.1 | %) | 3,902,340 | 3,737,749 | 3,575,301 | 3.5 | % | |||||||||||||
| Real estate - construction | 1,281,868 | 1,397,493 | (8.3 | %) | 1,611,857 | 1,963,919 | 2,228,090 | (42.5 | %) | |||||||||||||
| Lease financing | 87,568 | 95,851 | (8.6 | %) | 102,130 | 110,262 | 116,100 | (24.6 | %) | |||||||||||||
| Total commercial | 8,167,840 | 8,761,042 | (6.8 | %) | 9,229,784 | 9,716,855 | 10,079,765 | (19.0 | %) | |||||||||||||
| Home equity | 2,468,587 | 2,546,167 | (3.0 | %) | 2,591,262 | 2,656,747 | 2,784,248 | (11.3 | %) | |||||||||||||
| Installment | 759,025 | 873,568 | (13.1 | %) | 885,970 | 844,065 | 853,214 | (11.0 | %) | |||||||||||||
| Total retail | 3,227,612 | 3,419,735 | (5.6 | %) | 3,477,232 | 3,500,812 | 3,637,462 | (11.3 | %) | |||||||||||||
| Residential mortgage | 1,903,869 | 1,947,848 | (2.3 | %) | 2,058,581 | 2,092,440 | 2,200,725 | (13.5 | %) | |||||||||||||
| Total loans | $ | 13,299,321 | $ | 14,128,625 | (5.9 | %) | $ | 14,765,597 | $ | 15,310,107 | $ | 15,917,952 | (16.5 | %) | ||||||||
| Period End Deposit Composition | Mar10 vs Dec09 | Mar10 vs Mar09 | ||||||||||||||||||||
| Mar 31, 2010 | Dec 31, 2009 | % Change | Sept 30, 2009 | Jun 30, 2009 | Mar 31, 2009 | % Change | ||||||||||||||||
| Demand | $ | 3,023,247 | $ | 3,274,973 | (7.7 | %) | $ | 2,984,486 | $ | 2,846,570 | $ | 2,818,088 | 7.3 | % | ||||||||
| Savings | 897,740 | 845,509 | 6.2 | % | 871,539 | 898,527 | 895,310 | 0.3 | % | |||||||||||||
| Interest-bearing demand | 2,939,390 | 3,099,358 | (5.2 | %) | 2,395,429 | 2,242,800 | 1,796,724 | 63.6 | % | |||||||||||||
| Money market | 6,522,901 | 5,806,661 | 12.3 | % | 5,724,418 | 5,410,498 | 5,410,095 | 20.6 | % | |||||||||||||
| Brokered CDs | 742,119 | 141,968 | 422.7 | % | 653,090 | 930,582 | 922,491 | (19.6 | %) | |||||||||||||
| Other time deposits | 3,371,390 | 3,560,144 | (5.3 | %) | 3,817,147 | 3,991,414 | 4,030,481 | (16.4 | %) | |||||||||||||
| Total deposits | $ | 17,496,787 | $ | 16,728,613 | 4.6 | % | $ | 16,446,109 | $ | 16,320,391 | $ | 15,873,189 | 10.2 | % | ||||||||
Network transaction deposits included above in interest-bearing demand and money market | $ | 2,641,648 | $ | 1,926,539 | 37.1 | % | $ | 1,767,271 | $ | 1,605,722 | $ | 1,759,656 | 50.1 | % | ||||||||
| Customer repo sweeps (a) | $ | 188,314 | $ | 195,858 | (3.9 | %) | $ | 242,575 | $ | 269,809 | $ | 333,706 | (43.6 | %) | ||||||||
| (a) Included within short-term borrowings. | ||||||||||||||||||||||
Contacts:
Investors:
Joseph B. Selner, Chief
Financial Officer
920-491-7120
Media:
Janet L. Ford, SVP
Public Relations Director
414-278-1890
