-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RljGsfiJioQhbOgCQxismxMrRfo1DdxGxGIM8dEoa5CQzgCqTUuOgAeOWPN5O3vJ 17BfpWrIPVktj/AlewmH7Q== 0000007789-01-500014.txt : 20010730 0000007789-01-500014.hdr.sgml : 20010730 ACCESSION NUMBER: 0000007789-01-500014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010727 ITEM INFORMATION: FILED AS OF DATE: 20010727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASSOCIATED BANC-CORP CENTRAL INDEX KEY: 0000007789 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 391098068 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-05519 FILM NUMBER: 1690247 BUSINESS ADDRESS: STREET 1: 1200 HANSEN ROAD CITY: GREEN BAY STATE: WI ZIP: 54304 BUSINESS PHONE: 9204917015 MAIL ADDRESS: STREET 1: 1200 HANSEN ROAD CITY: GREEN BAY STATE: WI ZIP: 54304 FORMER COMPANY: FORMER CONFORMED NAME: ASSOCIATED BANK SERVICES INC DATE OF NAME CHANGE: 19770626 8-K 1 r8k72601.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest reported) July 19, 2001 ------------------------------------- Associated Banc-Corp - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its chapter) Wisconsin 39-1098068 - ------------------------------------------------------------------------------- (State or other jurisdiction of Commission(IRS Employer Identification No.) incorporation) File Number) 1200 Hansen Road, Green Bay, Wisconsin 54304 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) 920-491-7000 - ------------------------------------------------------------------------------- (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) Item 5. Other Events. On July 19, 2001, Associated Banc-Corp reported second quarter of 2001 earnings of 69 cents per diluted share. Associated Banc-Corp is placing on file as Exhibit 99 a copy of the Company's financial results for the quarter ended June 30, 2001. Final financial statements with additional analyses will be filed as part of the Company's Form 10-Q for the quarter ended June 30, 2001. Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit 99. Earnings news release of Associated Banc-Corp, dated July 19, 2001, of financial results for the quarter ended June 30, 2001. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Associated Banc-Corp ------------------------------------------------------- (Registrant) Date: July 26, 2001 /s/ Joseph B. Selner ------------------------------------------------------- Joseph B. Selner Chief Financial Officer EXHIBIT 99 [GRAPHIC OMITTED] Contacts: Investors: Joe Selner, Chief Financial Officer 920-491-7120 Media: Jon Drayna, Corporate Communications 920-491-7006 News Release Associated Banc-Corp reports record 2nd quarter earnings of 69 cents per share GREEN BAY, Wis. - July 19, 2001 - Associated Banc-Corp (NASDAQ: ASBC) reported record earnings of 69 cents per diluted share for the second quarter of 2001, compared to 63 cents in the second quarter of 2000, an increase of 9.5 percent. Net income was $46.0 million, compared to $43.7 million in the year-earlier quarter. Return on average assets rose to 1.42 percent, compared to 1.39 percent in the comparable 2000 quarter. Return on average equity was 18.02 percent, compared to 19.06 percent in the year-earlier period. Net interest income rose to $104.0 million in the second quarter, compared to $96.4 million in the year-earlier quarter, as the company's net interest margin continued to benefit from declining interest rates. Associated's net interest margin was 3.56 percent for the second quarter, compared to 3.37 percent in the year-earlier quarter and 3.34 percent in the first quarter. Commercial loans grew by 12.2 percent while overall loan growth was 3.3 percent over the second quarter of 2000. As the company experienced heavy mortgage refinancing in the quarter, the resulting new mortgages were sold into the secondary market, tempering total loan growth. Associated retained servicing for these residential mortgage loans. Credit quality remained strong overall, with second quarter net charge-offs of 16 basis points of average loans, annualized. Net charge-offs in the second quarter totaled $3.6 million, compared to $1.9 million in the year-earlier quarter, and $2.1 million in the first quarter, reflecting economic softening, which is affecting the bank's customers. Non-interest income for the second quarter of 2001 was $51.0 million, up from $50.5 million for the same quarter in 2000. The year-earlier quarter reflected a net $7.6 million gain from both the sale of Associated's credit card portfolio and certain investment securities. Second quarter mortgage banking income increased by $10.5 million from the year-earlier quarter due to record origination and sale of fixed rate first mortgage loans of $664 million, compared to $97 million in the second quarter of 2000. In addition, this quarter reflects a gain of $3 million from the sale of mortgage loan servicing rights. - More - ASBC 2Q, add one The increase in second quarter non-interest income overall was tempered by a decline in wealth management revenue resulting from weaker financial markets. Non-interest expenses were $82.3 million for the second quarter, up 1.5 percent from the $81.0 million in the year-earlier quarter. While total non-interest expenses have increased modestly, the company's efficiency ratio improved from 56.03 percent last year to 51.38 percent for the second quarter of 2001. Also in the second quarter, the company continued progress on its initiative to streamline operations in a way that improves Associated's ability to build customer relationships and improve productivity, most notably by successfully completing the consolidation of its six Wisconsin banking charters into a single national bank. Associated President and CEO Robert C. Gallagher said he was pleased with the company's positioning for the future and its ability to effectively capitalize on declining interest rates. "Earning $15 million in mortgage banking income and growing commercial loans by 12.2 percent are highlights of our financial improvement. These results demonstrate our commitment to providing value to both customers and shareholders. "Certainly, declining interest rates, our pricing discipline, and shifting mix toward greater growth in commercial loans have significantly improved our net interest margin and helped our strong second quarter results. At the same time, our associates' commitment to providing value to customer relationships, in conjunction with our recent organizational changes, position us for strong performance over the long term," Gallagher said. He reiterated Associated's previously stated expectation for 2001 earnings of $2.60 to $2.65 per diluted share, noting the relatively large contribution of mortgage banking fee income to the quarter's earnings, and that mortgage banking activity may have peaked in the second quarter due to the rapid decline in interest rates. Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with $13.2 billion in total assets. Associated has approximately 4,000 associates serving individuals, small, and large businesses with a full array of deposit, lending and wealth management services through more than 200 banking locations across Wisconsin, Illinois and Minnesota. Associated has paid a dividend for 125 consecutive quarters, with increases in each of the last 10 years, including an increase from 29 cents to 31 cents per share in the second quarter. This news release contains forward-looking statements 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. - 30 - Tables follow. Consolidated Balance Sheets (Unaudited) Associated Banc-Corp June 30, December 31, June 30, (in thousands) 2001 2000 2000 Assets Cash and due from banks $ 309,521 $ 368,186 $ 338,727 Interest-bearing deposits in other financial institutions 4,692 5,024 4,721 Federal funds sold and securities purchased under agreements to resell 42,350 23,310 116,320 Securities held to maturity, at amortized cost - 368,558 391,414 Securities available for sale, at fair value 3,249,373 2,891,647 2,848,595 Loans held for sale 128,192 24,593 11,773 Loans 3,983,678 8,913,379 8,696,417 Allowance for loan losses (126,390) (120,232) (115,395) Loans, net 8,857,288 8,793,147 8,581,022 Premises and equipment 122,592 127,600 134,924 Other assets 498,281 526,329 570,763 Total assets $13,212,289 $ 13,128,394 $12,998,259 Liabilities and Stockholders' Equity Noninterest-bearing deposits $ 1,175,615 $ 1,243,949 $ 1,131,871 Interest-bearing deposits 7,324,611 8,047,697 8,113,520 Total deposits 8,500,226 9,291,646 9,245,391 Short-term borrowings 2,958,835 2,598,203 2,555,837 Long-term debt 522,234 122,420 122,792 Accrued expenses and other liabilities 180,316 147,429 144,016 Total liabilities 12,161,611 12,159,698 12,068,036 Stockholders' Equity Preferred stock - - - Common stock 664 664 688 Surplus 297,289 296,479 355,279 Retained earnings 710,052 663,566 624,661 Accumulated other comprehensive income (loss) 51,857 15,581 (42,861) Treasury stock at cost (9,184) (7,594) (7,544) Total stockholders' equity 1,050,678 968,696 930,223 Total liabilities and stockholders' equity $13,212,289 $ 13,128,394 $12,998,259
Consolidated Statements of Income (Unaudited) Associated Banc-Corp For The Three Months Ended, For The Six Months Ended, June 30, June 30, (in thousands, except per share amounts) 2001 2000 2001 2000 Interest Income Interest and fees on loans $ 178,236 $ 177,650 $ 362,611 $ 349,889 Interest and dividends on investment securities: Taxable 37,082 40,782 75,654 82,504 Tax-exempt 10,042 9,171 20,206 17,367 Interest on deposits in other financial institutions 94 106 215 170 Interest on federal funds sold and securities purchased under agreements to resell 194 589 641 1,141 Total interest income 225,648 228,298 459,327 451,071 Interest Expense Interest on deposits 78,965 92,137 170,392 173,695 Interest on short-term borrowings 38,140 38,074 81,444 79,495 Interest on long-term debt 4,591 1,725 6,536 3,170 Total interest expense 121,696 131,936 258,372 256,360 Net Interest Income 103,952 96,362 200,955 194,711 Provision for loan losses 6,365 5,166 11,947 10,881 Net interest income after provision for loan losses 97,587 91,196 189,008 183,830 Noninterest Income Trust service fees 7,339 9,526 15,411 19,649 Service charges on deposit accounts 9,550 8,207 18,295 15,681 Mortgage banking 15,391 4,902 24,565 9,492 Credit card and other nondeposit fees 7,234 7,260 14,020 12,536 Retail commissions 4,265 5,337 8,749 10,945 Asset sale gains, net 383 13,043 915 21,307 Investment securities gains (losses), net (4) (5,490) 242 (7,192) Other 6,871 7,703 13,151 14,014 Total noninterest income 51,029 50,488 95,348 96,432 Noninterest Expense Personnel expense 41,233 38,916 81,538 77,554 Occupancy 5,927 5,672 12,281 11,816 Equipment 3,650 3,755 7,330 7,852 Data processing 4,822 6,708 9,665 12,387 Business development and advertising 3,191 3,269 6,192 6,499 Stationery and supplies 2,330 1,999 4,062 3,823 FDIC expense 446 421 880 898 Other 20,679 20,291 38,780 38,813 Total noninterest expense 82,278 81,031 160,728 159,642 Income before income taxes 66,338 60,653 123,628 120,620 Income tax expense 20,319 16,956 35,523 33,842 Net Income $ 46,019 $ 43,697 $ 88,105 $ 86,778 Earnings Per Share: Basic $ 0.70 $ 0.63 $ 1.33 $ 1.25 Diluted $ 0.69 $ 0.63 $ 1.32 $ 1.25 Average Shares Outstanding: Basic 66,146 68,918 66,148 69,211 Diluted 66,691 69,206 66,676 69,508
Selected Quarterly Information Associated Banc-Corp (in thousands, except per share data) 2nd Qtr 2001 1st Qtr 2001 4th Qtr 2000 3rd Qtr 2000 2nd Qtr 2000 Summary of Operations Interest income $ 225,648 $ 233,679 $ 242,194 $ 237,892 $ 228,298 Interest expense 121,696 136,676 147,876 143,354 131,936 Net interest income 103,952 97,003 94,318 94,538 96,362 Provision for loan losses 6,365 5,582 5,203 4,122 5,166 Net interest income after provision for loan losses 97,587 91,421 89,115 90,416 91,196 Asset sale gains, net 383 532 (66) 3,179 13,043 Investment securities gains (losses) (4) 246 (455) (2) (5,490) Noninterest income (excluding securities & asset gains) 50,650 43,541 43,916 41,192 42,935 Noninterest expense 82,278 78,450 77,929 80,165 81,031 Income taxes 20,319 15,204 14,880 13,116 16,956 Net income 46,019 42,086 39,701 41,504 43,697 Taxable equivalent adjustment 5,541 5,601 5,869 5,840 5,321 At Period End Assets $13,212,289 $13,122,386 $13,128,394 $13,120,002 $12,998,259 Earning assets 12,408,285 12,336,663 12,226,511 12,223,247 12,069,240 Loans 8,983,678 8,935,543 8,913,379 8,858,665 8,696,417 Allowance for loan losses 126,390 123,668 120,232 117,607 115,395 Deposits 8,500,226 8,687,691 9,291,646 9,331,316 9,245,391 Stockholders' equity 1,050,678 1,023,978 968,696 930,183 930,223 Stockholders' equity / assets 7.95% 7.80% 7.38% 7.09% 7.16% Goodwill and core deposit intangibles 102,497 104,598 106,700 108,885 111,165 Average Balances Assets $13,036,595 $13,014,503 $13,086,752 $12,903,544 $12,674,173 Earning assets 12,228,357 12,197,015 12,288,402 12,122,879 11,930,943 Interest-bearing liabilities 10,760,548 10,805,833 10,854,175 10,724,729 10,563,782 Loans 9,063,780 8,985,659 8,921,729 8,771,251 8,596,649 Deposits 8,504,760 8,788,540 9,435,473 9,252,903 9,086,902 Stockholders' equity 1,024,287 993,284 931,665 930,256 921,985 Stockholders' equity / assets 7.86% 7.63% 7.12% 7.21% 7.27% Credit Quality Nonaccrual loans $ 49,147 $ 50,310 $ 41,045 $ 39,907 $ 35,155 Loans 90 or more days past due and still accruing (4) 3,779 4,788 6,492 5,520 4,886 Restructured loans 143 146 159 23 - Total nonperforming loans 53,069 55,244 47,696 45,450 40,041 Other real estate owned (ORE) 2,603 3,285 4,032 3,710 3,954 Total nonperforming assets 55,672 58,529 51,728 49,160 43,995 Net charge-offs 3,643 2,146 2,578 1,910 1,852 Allowance for loan losses / loans 1.41% 1.38% 1.35% 1.33% 1.33% Allowance for loan losses / nonperforming assets 227.03 211.29 232.43 239.23 262.29 Allowance for loan losses / nonperforming loans 238.16 223.86 252.08 258.76 288.19 Nonperforming assets / loans plus ORE 0.62 0.65 0.58 0.55 0.51 Nonperforming assets / total assets 0.42 0.45 0.39 0.37 0.34 Net charge-offs / average loans (annualized) 0.16 0.10 0.11 0.09 0.09 Per Common Share Data (1) Net income: Basic $ 0.70 $ 0.64 $ 0.60 $ 0.61 $ 0.63 Diluted 0.69 0.63 0.60 0.61 0.63 Cash diluted (2) 0.72 0.66 0.63 0.63 0.66 Dividends 0.31 0.29 0.29 0.29 0.2636 Market Value: High $ 35.99 $ 36.19 $ 30.63 $ 26.63 $ 27.27 Low 31.63 29.75 21.84 22.13 21.81 Close 35.99 33.25 30.38 26.25 21.81 Book value 15.89 15.48 14.65 13.94 13.57 Shares outstanding, end of period 66,105 66,135 66,116 66,725 68,536 Performance Ratios (annualized) Net interest margin 3.56% 3.34% 3.20% 3.25% 3.37% Return on average assets 1.42 1.31 1.21 1.28 1.39 Return on average equity 18.02 17.18 16.95 17.75 19.06 Efficiency ratio (3) 51.38 53.68 54.08 56.63 56.03 Effective tax rate 30.63 26.54 27.26 24.01 27.96 Dividend payout ratio (basic) 44.29 45.31 48.33 47.54 41.84
(1) Per share data adjusted retroactively for stock splits and stock dividends. (2) Cash diluted EPS excludes the after-tax effect of the amortization of goodwill related intangibles in net income. (3) 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. (4) Does not include guaranteed student loans. Guaranteed student loans 90+ days past due and still accruing totaled $18.4 million as of June 30, 2001. Financial Summary and Comparison Associated Banc-Corp Three months ended Six months ended June 30, June 30, (in thousands, except per share data) 2001 2000 % Change 2001 2000 % Change Summary of Operations Interest income $ 225,648 $ 228,298 (1.2) $ 459,327 $ 451,071 1.8 Interest expense 121,696 131,936 (7.8) 258,372 256,360 0.8 Net interest income 103,952 96,362 7.9 200,955 194,711 3.2 Provision for loan losses 6,365 5,166 23.2 11,947 10,881 9.8 Net interest income after provision for loan losses 97,587 91,196 7.0 189,008 183,830 2.8 Asset sale gains, net 383 13,043 (97.1) 915 21,307 (95.7) Investment securities gains (losses) (4) (5,490) (99.9) 242 (7,192) (103.4) Noninterest income (excluding securities & asset gains) 50,650 42,935 18.0 94,191 82,317 14.4 Noninterest expense 82,278 81,031 1.5 160,728 159,642 0.7 Income taxes 20,319 16,956 19.8 35,523 33,842 5.0 Net income 46,019 43,697 5.3 88,105 86,778 1.5 Taxable equivalent adjustment 5,541 5,321 4.1 11,142 10,038 11.0 At Period End Assets $ 13,212,289 $ 12,998,259 1.6 Earning assets 12,408,285 12,069,240 2.8 Loans 8,983,678 8,696,417 3.3 Allowance for loan losses 126,390 115,395 9.5 Deposits 8,500,226 9,245,391 (8.1) Stockholders' equity 1,050,678 930,223 12.9 Average Balances Assets $ 13,036,595 $ 12,674,173 2.9 $ 13,024,517 $ 12,623,312 3.2 Earning assets 12,228,357 11,930,943 2.5 12,212,773 11,886,427 2.7 Interest-bearing liabilities 10,760,548 10,563,782 1.9 10,783,065 10,552,405 2.2 Loans 9,063,780 8,596,649 5.4 9,024,935 8,527,965 5.8 Deposits 8,504,760 9,086,902 (6.4) 8,645,866 8,859,041 (2.4) Stockholders' equity 1,024,287 921,985 11.1 1,008,871 909,262 11.0 Stockholders' equity / assets 7.86% 7.27% 7.75% 7.20% Per Common Share Data (1) Net income: Basic $ 0.70 $ 0.63 11.1 $ 1.33 $ 1.25 6.4 Diluted 0.69 0.63 9.5 1.32 1.25 5.6 Cash diluted (2) 0.72 0.66 9.1 1.38 1.31 5.3 Dividends 0.31 0.2636 17.6 0.60 0.5272 13.8 Market Value: High $ 35.99 $ 27.27 32.0 $ 36.19 $ 30.06 20.4 Low 31.63 21.81 45.0 29.75 20.29 46.6 Close 35.99 21.81 65.0 35.99 21.81 65.0 Book value 15.89 13.57 17.1 15.89 13.57 17.1 Shares outstanding, end of period 66,105 68,536 (3.5) 66,105 68,536 (3.5) Performance Ratios (annualized) Net interest margin 3.56% 3.37% 3.45% 3.41% Return on average assets 1.42 1.39 1.36 1.38 Return on average equity 18.02 19.06 17.61 19.19 Efficiency ratio (3) 51.38 56.03 52.48 55.61 Effective tax rate 30.63 27.96 28.73 28.06 Dividend payout ratio (basic) 44.29 41.84 45.11 42.18
(1) Per share data adjusted retroactively for stock splits and stock dividends. (2) Cash diluted EPS excludes the after-tax effect of the amortization of goodwill related intangibles in net income. (3) 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. -----END PRIVACY-ENHANCED MESSAGE-----