Investors:
Joe Selner, Chief Financial Officer
920-491-7120
Media:
Jon Drayna, Corporate Communications
920-491-7006
GREEN BAY, Wis. – April 22, 2004 – Associated Banc-Corp (Nasdaq: ASBC) earned $0.80 per diluted share in the first quarter of 2004, compared to $0.77 and $0.75 per diluted share for the first and fourth quarters of 2003, respectively.
Return on average assets was 1.57 percent and return on average equity was 17.37 percent in 2004, compared to 1.58 percent and 18.36 percent, respectively, for the first quarter of 2003, on an annualized basis. Compared to fourth quarter 2003, return on average assets was up 8 basis points, and return on average equity increased 52 basis points. Book value per share rose to $19.00 at March 31, 2004.
“Our performance in the first quarter is evidence of significant progress toward implementing our strategic priorities,” Associated President and CEO Paul Beideman said. “We are experiencing positive momentum in our wealth management and consumer businesses, as well as improved volume in our commercial banking business.”
“As a result of our efforts over the last six months, asset quality has improved significantly. Additionally, our focus on expense management is creating positive operating leverage,” Beideman said.
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ASBC 1Q 2004, add one
The comparison between the first quarter periods was impacted by anticipated changes in mortgage banking, as higher mortgage rates caused a slow-down in refinancing activity throughout the industry beginning in fourth quarter 2003. While mortgage banking fee revenue was down $15.5 million, the higher mortgage rates supported greater value of the servicing asset, lowering mortgage servicing rights expense by $4.8 million for a net $10.7 million impact between first quarter periods.
Also, the timing of a first quarter 2003 credit card merchant processing sale and services agreement (including a $3.4 million gain recorded as other income during first quarter 2003) and Associated’s acquisition of CFG Insurance Services, Inc. on April 1, 2003, impacted the comparison of noninterest income and expense between first quarters.
Net interest income rose to $129.1 million in the first quarter, compared to $127.5 million and $127.1 million in the first and fourth quarters of 2003, respectively. The net interest margin was 3.80 percent, compared to 3.87 percent for first quarter 2003 and 3.81 percent for fourth quarter 2003.
Total loans at the end of the first quarter 2004 were $10.5 billion, up from $10.3 billion at the end of the first quarter of 2003, including 4 percent growth in commercial loans and 17 percent growth in home equity loans. Total loans increased 8 percent on an annualized basis since year-end 2003, led by 9 percent annualized growth in commercial loans and 16 percent annualized growth in home equity loans. Total deposits were $9.7 billion, up 7 percent from $9.1 billion a year earlier, and relatively unchanged from $9.8 billion at year-end 2003.
The company’s credit quality showed improvement, benefiting first quarter 2004 results. Total nonperforming loans were $93.6 million, or 0.89 percent of total loans in the first quarter, down from $94.7 million, or 0.92 percent of loans a year ago, and $121.5 million, or 1.18 percent of loans at year-end 2003. More than half of the improvement in nonperforming loans since year end came from paydowns on two large problem loans, as management continues to work through problem credits. Also, first quarter net charge-offs of $5.1 million (0.20 percent of average loans annualized) were unchanged
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ASBC 1Q 2004, add two
from first quarter 2003 and down from $8.2 million (0.31 percent annualized) in fourth quarter 2003. Accordingly, the provision for loan losses declined to $5.2 million for first quarter 2004, compared to $13.0 million and $9.6 million in the first and fourth quarters of 2003, respectively. The allowance for loan losses was 1.69 percent of total loans at March 31, 2004, compared to 1.66 percent a year ago and 1.73 percent at December 31, 2003.
Excluding mortgage fee revenue, as previously discussed, noninterest income was $43.9 million for first quarter 2004, up from $39.1 million for the first quarter of 2003, and $42.7 million for fourth quarter 2003. Compared to the first quarter of 2003, insurance and brokerage retail commissions increased $6.1 million (primarily due to CFG), trust revenue was up $1.2 million, and service charges on deposit accounts were up $0.6 million.
Excluding mortgage servicing rights expense, as previously discussed, noninterest expense was $86.9 million for first quarter, compared to $85.0 million for the comparable 2003 period, and down from $93.4 million for fourth quarter 2003. The $1.9 million increase from the same period last year was primarily a result of including CFG operating expenses, offset by lower merchant processing costs. Compared to the fourth quarter of 2003, the $6.5 million decline was primarily the result of a $2.1 million decline in personnel expense, and expense control on discretionary spending.
“Our strategic priorities to diversify revenue streams and manage risk are taking hold and overcoming the market-driven decline in mortgage banking,” Beideman said.
“Additionally, we are excited about our previously announced April 1 acquisition of Jabas Group, Inc. Jabas is one of Wisconsin’s leading employee benefit firms, and will complement our growing insurance revenues,” he said.
“Given our improving sales effectiveness, our expense discipline, and improving asset quality trends, we are optimistic we can achieve or exceed the consensus of analysts’ estimates for our 2004 earnings,” Beideman said.
The company will host a conference call for investors and analysts at 3 p.m. today. The toll-free dial-in number is 877-654-5513. Participants should ask the operator for the Associated Banc-Corp earnings call, number 696-0660. An archived recording of the call will be available for one week.
— more —
ASBC 1Q 2004, add three
Associated Banc-Corp has 218 banking offices serving more than 150 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 atwww.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.
— 30 —
Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
March 31, December 31, March 31,
(in thousands) 2004 2003 % Change 2003 % Change
------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and due from banks $ 323,686 $ 389,140 (16.8%) $ 401,012 (19.3%)
Interest-bearing deposits in other
financial institutions 17,057 7,434 129.4% 13,640 25.1%
Federal funds sold and securities purchased
under agreements to resell 7,000 3,290 112.8% 27,815 (74.8%)
Securities available for sale, at fair value 3,883,470 3,773,784 2.9% 3,379,000 14.9%
Loans held for sale 120,699 104,336 15.7% 374,053 (67.7%)
Loans 10,486,610 10,291,810 1.9% 10,275,469 2.1%
Allowance for loan losses (177,717) (177,622) 0.1% (170,391) 4.3%
--------------- ---------------- ----------------
Loans, net 10,308,893 10,114,188 1.9% 10,105,078 2.0%
Premises and equipment 130,028 131,315 (1.0%) 132,234 (1.7%)
Goodwill 224,388 224,388 0.0% 212,112 5.8%
Intangible assets 59,899 63,509 (5.7%) 38,251 56.6%
Other assets 435,748 436,510 (0.2%) 405,971 7.3%
--------------- ---------------- ----------------
Total assets $ 15,510,868 $ 15,247,894 1.7% $ 15,089,166 2.8%
=============== ================ ================
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 1,755,485 $ 1,814,446 (3.2%) $ 1,692,979 3.7%
Interest-bearing deposits, excluding Brokered CDs 7,716,290 7,813,267 (1.2%) 7,158,585 7.8%
Brokered CDs 230,983 165,130 39.9% 208,670 10.7%
--------------- ---------------- ----------------
Total deposits 9,702,758 9,792,843 (0.9%) 9,060,234 7.1%
Short-term borrowings 2,516,270 1,928,876 30.5% 2,422,631 3.9%
Long-term funding 1,749,418 2,034,160 (14.0%) 2,142,978 (18.4%)
Accrued expenses and other liabilities 147,129 143,588 2.5% 177,457 (17.1%)
--------------- ---------------- ----------------
Total liabilities 14,115,575 13,899,467 1.6% 13,803,300 2.3%
Stockholders' Equity
Preferred stock - - -
Common stock 736 734 0.3% 748 (1.6%)
Surplus 582,928 575,975 1.2% 621,616 (6.2%)
Retained earnings 755,627 724,356 4.3% 637,781 18.5%
Accumulated other comprehensive income 66,526 52,089 27.7% 56,302 18.2%
Deferred compensation (1,981) (1,981) 0.0% - N/M
Treasury stock, at cost (8,543) (2,746) 211.1% (30,581) (72.1%)
--------------- ---------------- ----------------
--------------- ---------------- ----------------
Total stockholders' equity 1,395,293 1,348,427 3.5% 1,285,866 8.5%
--------------- ---------------- ----------------
Total liabilities and stockholders' equity $ 15,510,868 $ 15,247,894 1.7% $ 15,089,166 2.8%
=============== ================ ================
N/M - Not meaningful.
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months Ended,
March 31,
(in thousands, except per share amounts) 2004 2003 % Change
Interest Income
Interest and fees on loans $ 135,252 $ 148,496 (8.9%)
Interest and dividends on investment securities
and deposits with other financial institutions
Taxable 31,032 26,797 15.8%
Tax-exempt 10,235 10,055 1.8%
Interest on federal funds sold and securities
purchased under agreements to resell 27 35 (22.9%)
Total interest income 176,546 185,383 (4.8%)
Interest Expense
Interest on deposits 27,554 31,990 (13.9%)
Interest on short-term borrowings 6,539 8,567 (23.7%)
Interest on long-term funding 13,378 17,372 (23.0%)
Total interest expense 47,471 57,929 (18.1%)
Net Interest Income 129,075 127,454 1.3%
Provision for loan losses 5,176 12,960 (60.1%)
Net interest income after provision for
loan losses 123,899 114,494 8.2%
Noninterest Income
Trust service fees 7,868 6,630 18.7%
Service charges on deposit accounts 12,397 11,811 5.0%
Mortgage banking 9,026 24,500 (63.2%)
Credit card and other nondeposit fees 5,671 7,396 (23.3%)
Retail commissions 9,357 3,303 183.3%
Bank owned life insurance income 3,355 3,391 (1.1%)
Asset sale gains, net 222 122 82.0%
Investment securities gains (losses), net 1,931 (326) N/M
Other 3,132 6,779 (53.8%)
Total noninterest income 52,959 63,606 (16.7%)
Noninterest Expense
Personnel expense 52,276 48,836 7.0%
Occupancy 7,472 7,115 5.0%
Equipment 2,999 3,244 (7.6%)
Data processing 5,673 5,618 1.0%
Business development and advertising 2,657 3,363 (21.0%)
Stationery and supplies 1,226 1,679 (27.0%)
Mortgage servicing rights expense 6,772 11,598 (41.6%)
Other intangible amortization 782 350 123.4%
Loan expense 1,386 3,348 (58.6%)
Other 12,413 11,403 8.9%
Total noninterest expense 93,656 96,554 (3.0%)
Income before income taxes 83,202 81,546 2.0%
Income tax expense 23,642 23,553 0.4%
Net Income $ 59,560 $ 57,993 2.7%
Earnings Per Share:
Basic $ 0.81 $ 0.78 3.8%
Diluted $ 0.80 $ 0.77 3.9%
Average Shares Outstanding:
Basic 73,529 74,252 (1.0%)
Diluted 74,553 74,974 (0.6%)
N/M - Not meaningful.
Consolidated Statements of Income (Unaudited) - Quarterly Trend
Associated Banc-Corp
(in thousands, except per share amounts) 1Q04 4Q03 3Q03 2Q03 1Q03
------------------------------------------------------------------------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 135,252 $ 137,289 $ 145,246 $ 147,785 $ 148,496
Interest and dividends on investment securities
and deposits in other financial institutions:
Taxable 31,032 29,194 26,710 25,923 26,797
Tax-exempt 10,235 9,939 9,825 9,942 10,055
Interest on federal funds sold and securities
purchased under agreements to resell 27 36 38 54 35
--------------- -------------- --------------- -------------- --------------
Total interest income 176,546 176,458 181,819 183,704 185,383
Interest Expense
Interest on deposits 27,554 29,247 30,327 31,558 31,990
Interest on short-term borrowings 6,539 5,390 6,757 8,442 8,567
Interest on long-term funding 13,378 14,684 15,759 16,509 17,372
--------------- -------------- --------------- -------------- --------------
Total interest expense 47,471 49,321 52,843 56,509 57,929
--------------- -------------- --------------- -------------- --------------
Net Interest Income 129,075 127,137 128,976 127,195 127,454
Provision for loan losses 5,176 9,603 12,118 12,132 12,960
--------------- -------------- --------------- -------------- --------------
Net interest income after provision for
loan losses 123,899 117,534 116,858 115,063 114,494
Noninterest Income
Trust service fees 7,868 8,150 7,001 7,796 6,630
Service charges on deposit accounts 12,397 12,735 13,338 12,462 11,811
Mortgage banking 9,026 9,753 21,671 27,113 24,500
Credit card and other nondeposit fees 5,671 5,646 5,435 5,192 7,396
Retail commissions 9,357 8,031 6,830 7,407 3,303
Bank owned life insurance income 3,355 3,417 3,532 3,450 3,391
Asset sale gains (losses), net 222 1,366 871 (790) 122
Investment securities gains (losses), net 1,931 - 1 1,027 (326)
Other 3,132 3,379 3,245 4,771 6,779
--------------- -------------- --------------- -------------- --------------
Total noninterest income 52,959 52,477 61,924 68,428 63,606
Noninterest Expense
Personnel expense 52,276 54,391 53,080 51,733 48,836
Occupancy 7,472 6,710 7,101 7,151 7,115
Equipment 2,999 3,206 3,178 3,190 3,244
Data processing 5,673 5,731 6,322 5,602 5,618
Business development and advertising 2,657 4,165 4,113 3,553 3,363
Stationery and supplies 1,226 1,741 1,651 1,634 1,679
Mortgage servicing rights expense 6,772 735 4,199 13,021 11,598
Other intangible amortization 782 870 871 870 350
Loan expense 1,386 1,446 1,806 950 3,348
Other 12,413 15,125 13,486 14,483 11,403
--------------- -------------- --------------- -------------- --------------
Total noninterest expense 93,656 94,120 95,807 102,187 96,554
--------------- -------------- --------------- -------------- --------------
Income before income taxes 83,202 75,891 82,975 81,304 81,546
Income tax expense 23,642 20,282 24,589 24,635 23,553
--------------- -------------- --------------- -------------- --------------
Net Income $ 59,560 $ 55,609 $ 58,386 $ 56,669 $ 57,993
=============== ============== =============== ============== ==============
Earnings Per Share:
Basic $ 0.81 $ 0.76 $ 0.79 $ 0.77 $ 0.78
Diluted $ 0.80 $ 0.75 $ 0.79 $ 0.76 $ 0.77
Average Shares Outstanding:
Basic 73,529 73,310 73,473 73,959 74,252
Diluted 74,553 74,332 74,323 74,683 74,974
Selected Quarterly Information
Associated Banc-Corp
(in thousands, except per share & full time
equivalent employee data) 1st Qtr 2004 4th Qtr 2003 3rd Qtr 2003 2nd Qtr 2003 1st Qtr 2003
--------------------------------------------------------------------------------------------------------------
Summary of Operations
Net interest income 129,075 127,137 128,976 127,195 127,454
Provision for loan losses 5,176 9,603 12,118 12,132 12,960
Asset sale gains (losses), net 222 1,366 871 (790) 122
Investment securities gains (losses), net 1,931 - 1 1,027 (326)
Noninterest income (excluding securities &
asset gains 50,806 51,111 61,052 68,191 63,810
Noninterest expense 93,656 94,120 95,807 102,187 96,554
Income before income taxes 83,202 75,891 82,975 81,304 81,546
Income taxes 23,642 20,282 24,589 24,635 23,553
Net income 59,560 55,609 58,386 56,669 57,993
Taxable equivalent adjustment 6,404 6,230 6,165 6,231 6,277
--------------------------------------------------------------------------------------------------------------
Per Common Share Data (1)
Net income:
Basic $ 0.81 $ 0.76 $ 0.79 $ 0.77 $ 0.78
Diluted 0.80 0.75 0.79 0.76 0.77
Dividends 0.34 0.34 0.34 0.34 0.31
Market Value:
High $ 45.55 $ 43.13 $ 38.90 $ 38.41 $ 35.22
Low 42.12 38.81 37.12 32.15 32.33
Close 44.79 42.80 37.89 36.61 32.33
Book value 19.00 18.39 17.77 17.88 17.41
--------------------------------------------------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE) 3.80% 3.81% 3.78% 3.79% 3.87%
Return on average assets 1.57 1.49 1.53 1.51 1.58
Return on average equity 17.37 16.85 17.75 17.37 18.36
Efficiency ratio (2) 50.28 51.02 48.83 50.68 48.88
Effective tax rate 28.42 26.73 29.63 30.30 28.88
Dividend payout ratio (3) 41.98 44.74 43.04 44.16 39.74
--------------------------------------------------------------------------------------------------------------
Average Balances
Assets $15,261,277 $ 14,852,390 $ 15,152,676 $ 15,016,497$ 14,867,339
Earning assets 14,185,569 13,828,992 14,128,702 13,991,615 13,836,102
Interest-bearing liabilities 12,083,003 11,637,646 11,955,420 11,941,877 11,886,642
Loans 10,433,411 10,354,726 10,813,769 10,743,430 10,578,430
Deposits 9,585,074 9,679,789 9,485,000 9,121,204 8,901,441
Stockholders' equity 1,378,804 1,309,167 1,304,983 1,308,505 1,280,950
Stockholders' equity / assets 9.03% 8.81% 8.61% 8.71% 8.62%
--------------------------------------------------------------------------------------------------------------
At Period End
Assets $15,510,868 $ 15,247,894 $ 15,114,169 $ 15,218,816$ 15,089,166
Loans 10,486,610 10,291,810 10,289,242 10,387,364 10,275,469
Allowance for loan losses 177,717 177,622 176,223 172,440 170,391
Goodwill 224,388 224,388 224,388 224,388 212,112
Mortgage servicing rights, net 39,649 42,477 36,663 27,784 29,359
Other intangible assets 20,250 21,032 21,902 22,772 8,892
Deposits 9,702,758 9,792,843 9,635,356 9,453,460 9,060,234
Stockholders' equity 1,395,293 1,348,427 1,300,948 1,318,246 1,285,866
Stockholders' equity / assets 9.00% 8.84% 8.61% 8.66% 8.52%
Shares outstanding, end of period 73,445 73,311 73,227 73,736 73,870
Shares repurchased during period 328 141 727 476 717
Average per share cost of shares
repurchased during period $ 43.98 $ 42.27 $ 37.46 $ 36.12 $ 33.69
--------------------------------------------------------------------------------------------------------------
Selected trend information
Average full time equivalent employees 4,024 4,098 4,173 4,145 4,075
Trust assets under management, at market value $4,300,000 $ 4,100,000 $ 3,800,000 $ 3,800,000 $ 3,400,000
Mortgage loans originated for sale 359,791 524,118 1,422,747 1,229,022 1,097,520
Portfolio serviced for others 5,904,000 5,928,000 5,587,000 5,471,000 5,449,000
Mortgage servicing rights, net /
Portfolio serviced by others 0.67% 0.72% 0.66% 0.51% 0.54%
--------------------------------------------------------------------------------------------------------------
(1) Per share data adjusted retroactively for stock splits and stock dividends.
(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.
(3) Ratio is based upon basic earnings per share.
Financial Summary and Comparison
Associated Banc-Corp Three months ended
March 31,
----------------------------------
(in thousands) 2004 2003 % Change
----------------------------------------- --------------------------------------
Allowance for Loan Losses
Beginning balance $ 177,622 $ 162,541 9.3%
Provision for loan losses 5,176 12,960 (60.1%)
Charge offs (6,062) (5,754) 5.4%
Recoveries 981 644 52.3%
-----------------------
Net charge offs (5,081) (5,110) (0.6%)
-----------------------
Ending Balance $ 177,717 $ 170,391 4.3%
=======================
-------------------------------------------------------------------------------------------------------------------------------
Credit Quality 1Q04 vs 4Q03 1Q04 vs 1Q03
Mar 31, 200Dec 31, 2003 % Change Sept 30, 200June 30, 20Mar 31, 2003 % Change
------------------------------------------------------------------------------------
Nonaccrual loans $ 88,313 $ 113,944 (22.5%) $ 114,067 $ 110,820 $ 90,384 (2.3%)
Loans 90 or more days past due and
still accruing 5,258 7,495 (29.8%) 11,055 6,311 3,425 53.5%
Restructured loans 42 43 (2.3%) 44 46 844 (95.0%)
----------------------- -----------------------------------
Total nonperforming loans 93,613 121,482 (22.9%) 125,166 117,177 94,653 (1.1%)
Other real estate owned 7,199 5,457 31.9% 6,380 14,707 12,949 (44.4%)
----------------------- -----------------------------------
----------------------- -----------------------------------
Total nonperforming assets 100,812 126,939 (20.6%) 131,546 131,884 107,602 (6.3%)
======================= ===================================
Provision for loan losses 5,176 9,603 (46.1%) 12,118 12,132 12,960 (60.1%)
Net charge offs 5,081 8,204 (38.1%) 8,335 10,083 5,110 (0.6%)
Allowance for loan losses / loans 1.69% 1.73% 1.71% 1.66% 1.66%
Allowance for loan losses /
nonperforming loans 189.84 146.21 140.79 147.16 180.02
Nonperforming loans / total loans 0.89 1.18 1.22 1.13 0.92
Nonperforming assets / total assets 0.65 0.83 0.87 0.87 0.71
Net charge offs / average loans (annualized) 0.20 0.31 0.31 0.38 0.20
Year-to-date net charge offs / average loans 0.20 0.30 0.29 0.29 0.20
--------------------------------------------------------------------------------------------------------------------
Period End Loan Composition 1Q04 vs 4Q03 1Q04 vs 1Q03
Mar 31, 2004 Dec 31, 2003 % Change Sept 30, 2003 June 30, 20Mar 31, 2003 % Change
------------------------------------------------------------------------------------
Commercial, financial & agricultural $ 2,123,846$ 2,116,463 0.3% $ 2,186,214 $ 2,312,143$ 2,238,657 (5.1%)
Real estate - construction 1,094,597 1,077,731 1.6% 1,035,674 975,415 912,510 20.0%
Commercial real estate 3,368,660 3,246,954 3.7% 3,240,757 3,255,918 3,188,907 5.6%
Lease financing 45,998 38,968 18.0% 37,193 38,666 38,712 18.8%
----------------------- -----------------------------------
Commercial 6,633,101 6,480,116 2.4% 6,499,838 6,582,142 6,378,786 4.0%
Residential mortgage 2,166,035 2,145,227 1.0% 2,166,187 2,202,690 2,325,032 (6.8%)
Home equity 1,007,572 968,744 4.0% 912,142 895,952 858,928 17.3%
----------------------- -----------------------------------
Residential real estate 3,173,607 3,113,971 1.9% 3,078,329 3,098,642 3,183,960 (0.3%)
Consumer 679,902 697,723 (2.6%) 711,075 706,580 712,723 (4.6%)
----------------------- -----------------------------------
Total loans $ 10,486,61$ 10,291,810 1.9% $ 10,289,242$ 10,387,36$ 10,275,469 2.1%
======================= ===================================
--------------------------------------------------------------------------------------------------------------------
----------------------- -----------
Period End Deposit Composition 1Q04 vs 4Q03 1Q04 vs 1Q03
Mar 31, 2004 Dec 31, 2003 % Change Sept 30, 2003 June 30, 2003Mar 31, 2003 % Change
------------------------------------------------------------------------------------
Demand $ 1,755,485$ 1,814,446 (3.2%) $ 1,804,596 $ 1,833,703$ 1,692,979 3.7%
Savings 918,608 890,092 3.2% 924,036 942,027 935,740 (1.8%)
Interest-bearing demand 2,375,492 2,330,478 1.9% 2,086,964 1,797,065 1,540,757 54.2%
Money market 1,542,875 1,573,678 (2.0%) 1,559,769 1,598,317 1,658,735 (7.0%)
Brokered CDs 230,983 165,130 39.9% 156,994 163,857 208,670 10.7%
Other time deposits 2,879,315 3,019,019 (4.6%) 3,102,997 3,118,491 3,023,353 (4.8%)
----------------------- -----------------------------------
Total deposits $ 9,702,758$ 9,792,843 (0.9%) $ 9,635,356 $ 9,453,460$ 9,060,234 7.1%
======================= ===================================
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp Three months ended March 31, 2004 Three months ended March 31, 2003
------------------------------------- -------------------------------------
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 $ 6,532,215 $ 79,787 4.83% $ 6,326,737 $ 82,855 5.24%
Residential real estate 3,210,793 43,860 5.47 3,537,998 52,823 6.02
Consumer 690,403 11,868 6.91 713,695 13,062 7.42
--------------------------- ---------------------------
Total loans 10,433,411 135,515 5.17 10,578,430 148,740 5.65
Investments and other 3,752,158 47,435 5.06 3,257,672 42,920 5.27
--------------------------- ---------------------------
Total earning assets 14,185,569 182,950 5.14 13,836,102 191,660 5.56
Other assets, net 1,075,708 1,031,237
------------ ------------
Total assets $ 15,261,277 $ 14,867,339
============ ============
Interest-bearing liabilities:
Savings deposits $ 898,526 $ 841 0.38% $ 909,581 $ 1,453 0.65%
Interest-bearing demand deposits 2,364,013 4,700 0.80 1,486,311 3,113 0.85
Money market deposits 1,577,010 3,163 0.81 1,704,621 4,265 1.01
Time deposits, excluding Brokered CDs 2,937,071 18,412 2.52 3,012,579 22,065 2.97
--------------------------- ---------------------------
Total interest-bearing deposits,
excluding CDs 7,776,620 27,116 1.40 7,113,092 30,896 1.76
Brokered CDs 144,345 438 1.22 232,540 1,094 1.91
--------------------------- ---------------------------
Total interest-bearing deposits 7,920,965 27,554 1.40 7,345,632 31,990 1.77
Wholesale funding 4,162,038 19,917 1.90 4,541,010 25,939 2.28
--------------------------- ---------------------------
Total interest-bearing liabilities 12,083,003 47,471 1.57 11,886,642 57,929 1.96
Noninterest-bearing demand 1,664,109 1,555,809
Other liabilities 135,361 143,938
Stockholders' equity 1,378,804 1,280,950
------------ ------------
Total liabilities and stockholders' equity $ 15,261,277 $ 14,867,339
============ ============
--------------- ---------------
Net interest income and rate spread (1) $ 135,479 3.57% $ 133,731 3.60%
=============== ===============
Net interest margin (1) 3.80% 3.87%
Taxable equivalent adjustment $ 6,404 $ 6,277
=============== ===============
-------------------------------------------------------------------------------------------------------------------------------
(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.