þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) |
A. | Full title of the plan and the address of the plan, if different from that of the issuer named below: |
B. | Name of issuer of the securities held pursuant to the plan and the address of its principal executive officer: |
Page(s) | ||||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4-16 | ||||||||
17-19 | ||||||||
EX-23 |
2010 | 2009 | |||||||
Assets: |
||||||||
Investments: |
||||||||
At fair value (notes 3 and 7) |
||||||||
Common/collective trust funds |
$ | 143,644,023 | $ | 151,932,732 | ||||
Associated Banc-Corp common stock fund |
52,456,117 | 42,391,717 | ||||||
Mutual funds |
170,336,569 | 135,383,873 | ||||||
Money market fund |
5,007 | 49,312 | ||||||
Cash surrender value of life insurance |
137,725 | 138,532 | ||||||
Total investments |
366,579,441 | 329,896,166 | ||||||
Receivables: |
||||||||
Accrued interest, dividends and capital
gains distributions
receivable |
35,999 | 7 | ||||||
Due from broker for securities sold |
157,211 | 155,766 | ||||||
Notes receivable from participants |
1,449,115 | 1,396,874 | ||||||
Employer contribution receivable |
7,871,773 | 7,837,228 | ||||||
Total receivables |
9,514,098 | 9,389,875 | ||||||
Cash |
— | 1,192 | ||||||
Total assets |
376,093,539 | 339,287,233 | ||||||
Liabilities: |
||||||||
Administrative expenses payable |
215,179 | 210,653 | ||||||
Due to broker for securities purchased |
118,940 | 854,669 | ||||||
Total liabilities |
334,119 | 1,065,322 | ||||||
Net assets available for plan benefits |
$ | 375,759,420 | $ | 338,221,911 | ||||
2
2010 | 2009 | |||||||
Additions: |
||||||||
Additions to net assets attributed to: |
||||||||
Investment income/(loss): |
||||||||
Net appreciation/(depreciation) of investments |
$ | 46,427,646 | $ | 16,862,614 | ||||
Interest and dividends |
1,632,192 | 3,047,039 | ||||||
Total investment income |
48,059,838 | 19,909,653 | ||||||
Contributions: |
||||||||
Participant |
15,535,559 | 15,396,268 | ||||||
Employer |
7,871,773 | 7,837,228 | ||||||
Rollover |
1,484,936 | 2,183,005 | ||||||
Total additions |
72,952,106 | 45,326,154 | ||||||
Deductions: |
||||||||
Deductions from net assets attributed to: |
||||||||
Benefits paid to participants |
34,426,894 | 28,486,891 | ||||||
Corrective participant distributions |
44,426 | 801 | ||||||
Insurance premiums |
12,277 | 11,865 | ||||||
Administrative expenses |
931,000 | 787,762 | ||||||
Total deductions |
35,414,597 | 29,287,319 | ||||||
Net increase in net assets available for plan benefits |
37,537,509 | 16,038,835 | ||||||
Net assets available for plan benefits: |
||||||||
Beginning of year |
338,221,911 | 322,183,076 | ||||||
End of year |
$ | 375,759,420 | $ | 338,221,911 | ||||
3
(1) | Description of the Plan |
The following brief description of the Associated Banc-Corp 401(k) & Employee Stock Ownership Plan, formerly known as the Associated Banc-Corp 401(k) Profit Sharing & Employee Stock Ownership Plan, (the Plan) is provided for general information. The Plan contains 401(k) provisions. Participants should refer to the summary plan description for a more complete description of the Plan’s provisions. | ||
Background | ||
Associated Banc-Corp (the Company) has established the Associated Banc-Corp 401(k) & Employee Stock Ownership Plan, a defined contribution plan. The 401(k) provisions of the Plan provide for employee contributions complying with the provisions of Internal Revenue Code (the Code) Section 401(k) as well as employer matching contributions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). | ||
Participants | ||
Employees of the Company and its subsidiaries that have adopted the Plan are eligible to participate in the employer 401(k) contribution provisions of the Plan on January 1 of the year in which 1,000 hours of service are completed. Employees are eligible to participate in the employee 401(k) contribution portion of the Plan if they are reasonably expected to complete 1,000 hours of service annually. Otherwise, employees are eligible to participate in the Plan immediately after completing 1,000 hours of service in a Plan year. | ||
In conjunction with the 401(k) provisions of the Plan, participants can elect to contribute an amount between 1% and the limitations ($16,500 for 2010 and $16,500 for 2009) of Section 402(g) of the Code of their compensation in multiples of 1% to the Plan by means of regular payroll deductions. Participants may contribute pre-tax 401(k) contributions, Roth 401(k) contributions or a combination of both. Participants who have attained age 50 are eligible to make catch-up contributions in accordance with, and subject to the limitations ($5,500 for 2010 and $5,500 for 2009) of, Code Section 414(v). Participants are also allowed to contribute amounts qualifying as rollover contributions under Section 402(c)(4) of the Code. | ||
The Plan provides for a discretionary Company matching contribution. For 2010 and 2009 the discretionary match was equal to 100% of the first three percent deferred plus 50% of the next three percent deferred for plan participants who met the service requirements. |
4
Vesting | ||
Participants are 100% vested at all times in both employee and Company matching contributions under the 401(k) portion of the Plan. During 2006, the Plan provided for discretionary Company contributions under the profit sharing provisions of the Plan. The following is a schedule of vesting in the Company’s discretionary profit sharing contribution. The Plan was amended to discontinue the discretionary profit sharing contribution in 2007; however, participants in the plan with profit sharing balances will continue to vest according to this schedule. |
Years of Service | Vested Percentage | |||
Less than three |
0 | % | ||
Three but less than four |
50 | % | ||
Four but less than five |
75 | % | ||
Five or more |
100 | % |
Forfeitures | ||
Upon termination, the non-vested portion of Company discretionary profit sharing contributions and the earnings thereon become subject to forfeiture. Forfeitures were $157,943 and $140,834 in 2010 and 2009 respectively. All forfeitures are used to reduce employer contributions in the next calendar year. | ||
Investment of Plan Assets | ||
Participants have the right to direct that investments be made in the Associated Trust Company, N.A. Common Stock Fund, Associated Trust Company, N.A. Equity Income Fund, Associated Trust Company, N.A. Balanced Lifestage Fund, Associated Trust Company, N.A. Growth Balanced Lifestage Fund, Associated Trust Company, N.A. Growth Lifestage Fund, Associated Trust Company, N.A. Intermediate Term Bond Fund, Associated Trust Company, N.A. Short Term Bond Fund, Associated Trust Company, N.A. Conservative Balanced Lifestage Fund, Associated Money Market Account, Associated Banc-Corp Common Stock Fund, Dodge & Cox Stock Fund, EuroPacific Growth Fund, Goldman Sachs Growth Opportunities Institutional Fund, Goldman Sachs Satellite Fund, Growth Fund of America, Perkins Small Cap Value Fund, Perkins Mid Cap Value Fund, Nakoma Absolute Return Fund, American New World Fund, Templeton Institutional Foreign Equity Fund, Vanguard Institutional Index Fund, Wasatch Small Cap Growth Fund, or a combination of funds. Plan assets are held in trust with a subsidiary of the Company, Associated Trust Company, N.A. (the trustee). The following is a brief description of each fund: |
5
Associated Trust Company, N.A. Common Stock Fund — The fund is designed to achieve long-term growth through investment in large cap companies with good growth prospects. The majority of the assets in this portfolio are included in the S&P 500 Index. | ||
Associated Trust Company, N.A. Equity Income Fund — The fund is designed to pursue growth of capital while providing above average dividend yield. The fund invests in common stocks believed to be undervalued. | ||
Associated Trust Company, N.A. Balanced Lifestage Fund — The fund is designed to put equal emphasis on the pursuit of capital growth through investments in stocks, along with the stability and income generation provided by fixed income securities. Approximately one-half of the portfolio will consist of investment grade bonds with the remaining one-half consisting of a diversified mix of stocks, with an emphasis on large capitalization stocks, but will also include mid-cap, small-cap, and foreign stocks. | ||
Associated Trust Company, N.A. Growth Balanced Lifestage Fund — The fund is designed to seek both long term growth of capital and a modest amount of income and stability through a mix of stocks and bonds. The portfolio will largely emphasize the pursuit of capital growth through investments in large capitalization stocks, but will also include mid-cap, small-cap, and foreign stocks with the remainder primarily consisting of investment grade bonds. | ||
Associated Trust Company, N.A. Growth Lifestage Fund — The fund is designed to achieve growth of capital through investment in a broadly diversified portfolio of common stocks. The portfolio will emphasize large capitalization stocks, but will also include mid-cap, small-cap, and foreign stocks. | ||
Associated Trust Company, N.A. Intermediate Term Bond Fund — The fund is designed to earn a competitive total return through diversified investment in high-quality fixed income securities issued by the United States Government, federal agencies, and public corporations, as well as mortgage-backed and asset-backed issues and certificates of deposit. | ||
Associated Trust Company, N.A. Short Term Bond Fund — The fund is designed to earn a competitive total return through diversified investments in U.S. Treasury Notes, U.S. government agencies, investment grade corporate bonds, and mortgage backed securities. | ||
Associated Trust Company, N.A. Conservative Balanced Lifestage Fund — The fund is designed to emphasize stability of principal and income through investments in fixed income securities with a smaller emphasis on capital growth through investment stocks. The portfolio will primarily consist of investment grade bonds with the equity portion consisting primarily of large capitalization stocks, but will also include mid-cap, small-cap, and foreign stocks. | ||
Associated Money Market Account — The investment alternative is designed to provide safety of principal through use of a money market account or bank repurchase agreements. |
6
Associated Banc-Corp Common Stock Fund — The fund is designed to share in the performance of Associated Banc-Corp. The fund invests in Associated Banc-Corp common stock and cash equivalents. | ||
Dodge & Cox Stock Fund — The fund is designed to pursue long-term growth of principal and income. The Fund intends to remain fully invested in equities with at least 65% of assets in common stocks. | ||
EuroPacific Growth Fund — The fund is designed to pursue long-term growth of capital. The fund invests in at least 80% of assets in equity securities of issuers from Europe and the pacific Basin. | ||
Goldman Sachs Growth Opportunities Institutional Fund — The fund is designed to achieve long-term growth of capital. The fund invests in at least 90% of assets in equity securities with a primary focus on mid-cap companies. | ||
Goldman Sachs Satellite Fund — The fund is designed to achieve long term growth of capital. The fund invests in at least 80% of assets in satellite asset classes. Satellite asset classes are those that historically have had lower correlations to traditional market exposures such as large cap equities and investment grade fixed income. Satellite funds can be both equity and fixed income funds. | ||
Growth Fund of America — The fund is designed to achieve long-term capital growth. The fund invests primarily in domestic equities, but may invest up to 25% in securities of issuers domiciled outside of the United States. | ||
Perkins Small Cap Value Fund — The fund is designed to achieve capital appreciation. The fund invests in at least 80% of assets in equity securities of undervalued small companies with market capitalization within the 12-month average of the capitalization range of the Russell 2000 index. | ||
Perkins Mid Cap Value Fund — The fund is designed to achieve capital appreciation. The fund invests in at least 80% of assets in equity securities of undervalued mid size companies with market capitalization within the 12-month average of the capitalization range of the Russell Midcap. | ||
Nakoma Absolute Return Fund — The fund is designed to obtain absolute returns with low volatility independent of equity market conditions. The fund invests in primarily equity securities traded in U.S. markets. | ||
American New World Fund — The fund is designed to achieve long term capital appreciation. The fund invests primarily in common stocks of companies with significant exposure to countries with developing economies and/or markets. |
7
Templeton Institutional Foreign Equity Fund — The fund is designed to achieve long term capital growth. The fund normally invests at least 80% of net assets in foreign (non-U.S.) equity securities. It also invests in depository receipts and emerging market countries. | ||
Vanguard Institutional Index Fund — The fund is designed to replicate the aggregate price and yield performance of the S&P 500 Index. The fund invests in all 500 stocks listed in the S&P 500 in approximately the same proportion as they are represented in the Index. | ||
Wasatch Small Cap Growth Fund — The fund is designed to achieve long term capital growth, with income as a secondary consideration. The fund invests primarily in small growth companies. It invests at least 80% of net assets in equity securities of small companies with market capitalization of less than $2.5 billion. The fund may invest up to 20% of assets in securities issued by foreign companies in developed or emerging markets. | ||
Participants can elect to invest in one of the aforementioned funds or in 1% increments in two or more funds. Participants can change the allocation of the Plan accounts on a daily basis. | ||
Notes Receivable From Participants | ||
A participant may request a loan for one or a combination of the following reasons: (a) purchase, construction or preservation/rehabilitation of a participant-owned principal residence, (b) post-secondary education expenses for the participant, their spouse or their dependents, (c) medical expenses incurred by the participant or the participant’s immediate family, (d) funeral expenses for the participant’s deceased parent, spouse, children or dependents, or (e) expenses for the repair of damage to the participant’s principal residence that would qualify for casualty loss deduction. | ||
Loans are limited to the lesser of (1) $50,000, reduced by the excess of the highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date on which such loan was made over the outstanding balance of loans from the Plan on the date on which such loan was made or (2) 50% of the vested benefit of the participant’s account balance. Participant loans will not be granted for less than $1,000. | ||
A commercially reasonable fixed rate of interest will be assessed on the loan with the current rate set at the prime rate plus 2% offered by Associated Bank, N.A. The loan will provide bi-weekly payments under a level amortization schedule of not greater than 5 years or 15 years if a loan is used to acquire a principal residence. The plan may also hold grandfathered or inherited loans from merged plans with maturity dates extended beyond the 15 years allowed by the plan document. | ||
Participant Accounts |
The Plan is a defined contribution plan under which a separate individual account is established for each participant. Plan investments are valued daily. Due to daily valuation, contributions are allocated to participant accounts upon receipt, and income and changes in asset values are |
8
immediately allocated to the participants’ accounts. Under a daily valued plan, participants can verify account balances daily utilizing the VRU (Voice Response Unit) or Internet access. | ||
Distributions | ||
Distributions are made in the form of lump-sum payments, payments over a period in monthly, quarterly, semi-annual or annual installments and other payment forms allowed by the Plan document. Distributions must begin no later than 60 days after the close of the plan year in which the later of the participant’s attainment of age 65 or the termination date occurs, unless the participant elects to delay commencement of the distribution until April 1 following the attainment of age 70 1/2. Participants may withdraw amounts for any reason upon reaching age 59 1/2. Earnings are credited to a participant’s account through the date of distribution. | ||
Distributions are made in cash or, if a participant elects, in the form of Company common shares plus cash for any fractional share. | ||
Termination of Plan | ||
While the Company has not expressed any intent to terminate the Plan, it is free to do so at any time subject to the provisions of ERISA. In the event of termination, participants become fully vested to the extent of the balance in their account, including investment income through the termination date. | ||
(2) | Summary of Significant Accounting Policies | |
Basis of Presentation | ||
The accompanying financial statements have been prepared on the accrual basis of accounting and present the net assets available for plan benefits and changes in those net assets in accordance with U.S. generally accepted accounting principles. | ||
New Accounting Pronouncements | ||
On October 1, 2009, the FASB issued Accounting Standards Update (“ASU”) 2010-12, Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalents). This ASU provides guidance for determining the fair value of certain investments that do not have readily determinable fair values and permits the use of unadjusted net asset values (“NAV”) or an equivalent measure as a practical expedient to estimate fair value. ASU 2010-12 is effective for financial statements issued for fiscal years beginning after December 15, 2009. The adoption of this new guidance did not have an impact on the Statement of Net Assets Available for Benefits or the Statement of Changes in Net Assets Available for Benefits. |
9
In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures, which required entities to make new disclosures about recurring and nonrecurring fair value measurements including significant transfers in and out of Level 1 and 2 categories and provide information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 measurements. ASU No. 2010-06 also clarifies existing fair value disclosures. ASU No. 2010-06 is effective for periods beginning after December 15, 2009, except for the requirement to provide Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December 15, 2010. | ||
In September 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2010-25, Reporting Loans to Participants Defined by Contribution Pension Plans (ASU 2010-25). ASU 2010-25 requires participant loans to be measured at their unpaid principal balance plus any accrued but unpaid interest and classified as notes receivable from participants. Previously, loans were measured at fair value and classified as investments. ASU 2010-25 is effective for fiscal years ending after December 15, 2010 and is required to be applied retrospectively. The adoption of ASU 2010-25 did not change the value of participant loans from the amount previously reported as of December 31, 2009. Participant loans as of December 31, 2009 have been reclassified to notes receivable from participants to conform to the current year’s presentation. | ||
The significant accounting policies of the Plan are as follows: | ||
Investments and Income Recognition | ||
Investment securities are valued at quoted market prices. However, securities for which no quoted market prices are available are valued at estimated fair value. The investments in units of the common/collective funds are carried at the net asset value (NAV), which is the value at which units in the funds can be withdrawn and approximates fair value as a practical expedient. The money market account is stated at cost, which approximates fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Footnote (7) for discussion of fair value measurements. | ||
Cash surrender values are provided by the underlying insurance providers at year end and also upon individual policy surrender. As such, these holdings are valued at the year end cash surrender values, which approximates fair value. Upon death of the participant, death benefits are paid directly to the beneficiary from the insurance provider and not by the Plan. Any cash surrender value upon termination of a life insurance policy is paid directly to terminated participant or to the Plan for active participants. | ||
Plan assets are held by the trustee. Net appreciation includes realized gains and losses on investments purchased and sold and changes in appreciation for the period. Purchases and sales |
10
2010 | 2009 | |||||||
Associated Banc-Corp Common Stock Fund |
$ | 52,456,117 | $ | 42,391,717 | ||||
Associated Trust Company, N.A. Growth Lifestage Fund |
41,502,795 | 38,576,146 | ||||||
Associated Trust Company, N.A. Balanced Lifestage Fund |
44,875,130 | 44,516,302 | ||||||
Associated Money Market Account |
32,506,490 | 34,664,379 | ||||||
Associated Trust Company, N.A. Intermediate Term Bond Fund |
25,623,316 | 27,145,116 | ||||||
Dodge & Cox Stock Fund |
24,141,721 | 21,514,510 | ||||||
Goldman Sachs TR Growth Opportunity Fund |
18,520,026 | 14,292,437 |
11
The Plan’s investments, including gains and losses on investments purchased and sold, as well as held during the year, appreciated in value by $46,427,646 during 2010 and depreciated in value by $16,862,614 during 2009 as follows: |
2010 | 2009 | |||||||
Associated Banc-Corp Common Stock Fund |
$ | 14,969,482 | $ | (38,729,062 | ) | |||
Common/Collective Trust Funds |
18,040,560 | 29,584,313 | ||||||
Mutual Funds |
13,417,604 | 26,007,363 | ||||||
Total |
$ | 46,427,646 | $ | 16,862,614 |
(4) | Transactions with Related Parties | |
The Associated Banc-Corp Common Stock Fund at December 31, 2010 and 2009 included 3,427,286 shares and 3,821,499 shares, respectively, of common stock of the Company with fair values of $51,923,383 and $42,074,704, respectively. Dividend income from Company stock totaled $143,398 and $1,863,608 in 2010 and 2009, respectively. Also included in the Associated Banc-Corp common stock fund at December 31, 2010 and 2009 were units of Goldman Sachs Financial Square Prime Obligations Fund with fair values of $532,734 and $317,013, respectively. The Goldman Sachs Financial Square Prime Obligations Fund is an unrelated party. | ||
Associated Trust Company, N.A. performs asset management and participant recordkeeping for the Plan. Asset management and recordkeeping fees paid from the Plan to Associated Trust Company, N.A. totaled $931,000 and $787,762 in 2010 and 2009, respectively. | ||
The Plan invests in various Associated Trust Company, N.A. common/collective trust funds and a Money Market Account. As of December 31, 2010 and 2009, $143,644,023 and $151,932,732, respectively, were invested in Associated Trust Company, N.A. common/collective trust funds. As of December 31, 2010 and 2009, $32,506,490 and $34,664,379, respectively, were invested in an Associated Money Market Account (classified under mutual funds on the balance sheet). |
12
The following is a reconciliation of net assets available for plan benefits per the financial statements at December 31, 2010 and 2009 to Form 5500: |
2010 | 2009 | |||||||
Net assets available for plan benefits per the
financial statements |
$ | 375,759,420 | $ | 338,221,911 | ||||
Amounts allocated to benefit claims payable |
(110,608 | ) | (127,019 | ) | ||||
Net Assets available for plan benefits per the Form 5500 |
$ | 375,648,812 | $ | 338,094,892 | ||||
The following is a reconciliation of benefits paid to participants per the financial statements for the years ended December 31, 2010 and 2009 to Form 5500: |
2010 | 2009 | |||||||
Benefits paid to participants per the financial statements |
$ | 34,426,894 | $ | 28,486,891 | ||||
Add: Amounts allocated to benefit claims payable at
December 31, 2010 and 2009, respectively |
110,608 | 127,019 | ||||||
Less: Amounts allocated to benefit claims payable at
December 31, 2009 and 2008, respectively |
(127,019 | ) | (1,397,655 | ) | ||||
Benefits paid to participants per Form 5500 |
$ | 34,410,483 | $ | 27,216,255 | ||||
(6) | Income Taxes | |
The Plan administrator has received a favorable tax determination letter, dated February 3, 2006, from the Internal Revenue Service indicating that the Plan qualifies under the provisions of Section 401(a) of the Code, and the related trust is, therefore, exempt from tax under Section 501(a). Therefore, a provision for income taxes has not been included in the Plan’s financial statements. The Plan has been amended since receiving the determination letter. However, in the opinion of the Plan Administrator, the Plan and its underlying trust have operated within the terms of the Plan and remain qualified under the applicable provisions of the Code. | ||
Participants in the Plan are not subject to federal income taxes until they receive a distribution from the Plan. | ||
Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2010, there are no uncertain positions taken or |
13
expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2010. |
(7) | Fair Value Measurements | |
ASC Topic 820-10, Fair Value Measurements and Disclosures, applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard amends numerous accounting pronouncements but does not require any new fair value measurements of reported balances. The standard also emphasizes that fair value (i.e., the price that would be received in an orderly transaction that is not a forced liquidation or distressed sales at the measurement date), among other things, is based on exit price versus entry price, should include assumptions about risk such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. When considering the assumptions that market participants would use in pricing the asset or liability, this accounting standard establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The fair value hierarchy prioritizes inputs used to measure fair value into three broad levels. | ||
Level 1 inputs — utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity has the ability to access. | ||
Level 2 inputs — inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. | ||
Level 3 inputs — unobservable inputs for the asset or liability, which are typically based on the entity’s own assumptions, as there is little, if any, related market activity. |
14
The following table summarizes the Plan’s investments at December 31, 2010, based on the inputs used to value them: |
Investments: | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
*Common/collective trust funds: |
||||||||||||||||
Balanced funds |
$ | 62,008,519 | $ | 62,008,519 | ||||||||||||
Fixed income funds |
28,194,869 | 28,194,869 | ||||||||||||||
Growth funds |
48,981,716 | 48,981,716 | ||||||||||||||
Income funds |
4,458,919 | 4,458,919 | ||||||||||||||
Total Common/collective funds |
143,644,023 | 143,644,023 | ||||||||||||||
Associated Banc-Corp
common stock fund |
52,456,117 | $ | 52,456,117 | |||||||||||||
Mutual funds: |
||||||||||||||||
Balanced funds |
24,141,721 | 24,141,721 | ||||||||||||||
Fixed income funds |
32,506,490 | 32,506,490 | ||||||||||||||
Growth funds |
98,778,979 | 98,778,979 | ||||||||||||||
Income funds |
589,655 | 589,655 | ||||||||||||||
Index funds |
14,319,724 | 14,319,724 | ||||||||||||||
Total Mutual funds |
170,336,569 | 170,336,569 | ||||||||||||||
Money market fund |
5,007 | 5,007 | ||||||||||||||
Cash surrender value of
life insurance |
137,725 | $ | 137,725 | |||||||||||||
Total |
$ | 366,579,441 | $ | 222,797,693 | $ | 143,644,023 | $ | 137,725 |
The following table summarizes the Plan’s investments at December 31, 2009, based on the inputs used to value them: |
Investments: | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
*Common/collective trust funds: |
||||||||||||||||
Balanced funds |
$ | 58,459,970 | $ | 58,459,970 | ||||||||||||
Fixed income funds |
27,155,401 | 27,155,401 | ||||||||||||||
Growth funds |
63,200,389 | 63,200,389 | ||||||||||||||
Income funds |
3,116,972 | 3,116,972 | ||||||||||||||
Total Common/collective funds |
151,932,732 | 151,932,732 | ||||||||||||||
Associated Banc-Corp
common stock fund |
42,391,717 | $ | 42,391,717 | |||||||||||||
Mutual funds: |
||||||||||||||||
Balanced funds |
21,514,510 | 21,514,510 | ||||||||||||||
Fixed income funds |
34,664,379 | 34,664,379 | ||||||||||||||
Growth funds |
65,666,525 | 65,666,525 | ||||||||||||||
Income funds |
1,013,029 | 1,013,029 | ||||||||||||||
Index funds |
12,525,430 | 12,525,430 | ||||||||||||||
Total Mutual funds |
135,383,873 | 135,383,873 | ||||||||||||||
Money market fund |
49,312 | 49,312 | ||||||||||||||
Cash surrender value of
life insurance |
138,532 | $ | 138,532 | |||||||||||||
Total |
$ | 329,896,166 | $ | 177,824,902 | $ | 151,932,732 | $ | 138,532 |
* | The funds’ NAVs per share are used as a practical expedient to measure fair value on a recurring basis. |
15
The table below sets forth a summary of changes in the fair value of the Plan’s Level 3 investments for the years ended December 31, 2010: |
Cash surrender value | ||||
of life insurance | ||||
Beginning Balance on January 1, 2010: |
$ | 138,532 | ||
Realized and unrealized losses: |
3,735 | |||
Purchases, sales, issuances and settlements, net: |
(4,542 | ) | ||
Ending Balance on December 31, 2010: |
$ | 137,725 | ||
The amount of total gains or losses for the period
attributable to the change in unrealized gains or
losses relating to assets still held at the
reporting date. |
$ | 3,735 |
(8) | Subsequent Events | |
The Plan Sponsor has evaluated the effects on the financial statements of subsequent events that have occurred subsequent to December 31, 2010 through the date these financial statements were issued. During this period, there have been no material events that would require recognition in the financial statements or disclosures to the financial statements. |
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Description of investment, | ||||||||||
including maturity date, | ||||||||||
Identity of issue, borrower, | rate of interest, collateral | Current | ||||||||
Lessor, or similar party | par, or maturity value | Value | ||||||||
* | Associated Trust Company, N.A. Common
Stock Fund |
39,894 units | $ | 7,478,921 | ||||||
* | Associated Trust Company, N.A.
Equity Income Fund |
52,453 units | 4,458,919 | |||||||
* | Associated Trust Company, N.A.
Balanced Lifestage Fund |
2,515,906 units | 44,875,130 | |||||||
* | Associated Trust Company, N.A.
Growth Balanced Lifestage Fund |
629,640 units | 11,504,592 | |||||||
* | Associated Trust Company, N.A.
Growth Lifestage Fund |
2,252,377 units | 41,502,795 | |||||||
* | Associated Trust Company, N.A.
Intermediate Term Bond Fund |
707,738 units | 25,623,316 | |||||||
* | Associated Trust Company, N.A.
Conservative Balanced Lifestage Fund |
353,752 units | 5,628,797 | |||||||
* | Associated Trust Company, N.A.
Short Term Bond Fund |
120,799 units | 2,571,553 | |||||||
Total common/collective trust funds |
$ | 143,644,023 | ||||||||
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Description of investment, | ||||||||||
including maturity date, | ||||||||||
Identity of issue, borrower, | rate of interest, collateral | Current | ||||||||
Lessor, or similar party | par, or maturity value | Value | ||||||||
* | Associated Banc-Corp common stock fund |
1,957,662 | $ | 52,456,117 | ||||||
* | Associated Money Market Account |
27,088,366 units | 32,506,490 | |||||||
Dodge & Cox Stock Fund |
224,032 units | 24,141,721 | ||||||||
EuroPacific Growth Fund |
412,916 units | 17,082,352 | ||||||||
Goldman Sachs Growth Opportunities Institutional Fund |
760,576 units | 18,520,026 | ||||||||
Growth Fund of America |
479,491 units | 14,595,708 | ||||||||
Perkins Small Cap Value Fund |
710,395 units | 17,070,789 | ||||||||
Perkins Mid Cap Value Fund |
373,967 units | 8,440,432 | ||||||||
Vanguard Institutional Index Fund |
124,509 units | 14,319,724 | ||||||||
Nakoma Absolute Return Fund |
31,166 units | 589,655 | ||||||||
American New World Fund |
53,148 units | 2,902,959 | ||||||||
Goldman Sachs Satellite Fund |
161,272 units | 1,280,503 | ||||||||
Templeton Institutional Fund |
332,787 units | 6,672,384 | ||||||||
Wasatch Small Cap Growth Fund |
309,211 units | 12,213,826 | ||||||||
Total Mutual funds |
170,336,569 | |||||||||
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Description of investment, | ||||||||||
including maturity date, | ||||||||||
Identity of issue, borrower, | rate of interest, collateral | Current | ||||||||
Lessor, or similar party | par, or maturity value | Value | ||||||||
Goldman Sachs Financial Square Prime Obligations
Fund (Held in directed segregated accounts) |
$ | 5,007 | ||||||||
Cash Surrender Value of Life Insurance: |
||||||||||
Penn Mutual Life Insurance Co. |
42,640 | |||||||||
The Guardian Insurance and Annuity Co. |
33,333 | |||||||||
General American Life Ins. Co. |
61,752 | |||||||||
Total cash surrender value of life insurance |
137,725 | |||||||||
Total Investments per Statement of Net Assets |
366,579,441 | |||||||||
Loans to participants (202 participant loans with
interest rates ranging from 3.25% to 9.00% and maturity
dates ranging from January 21, 2011 to October 15,
2025) |
1,449,115 | |||||||||
Total Investments per 5500 |
$ | 368,028,556 | ||||||||
* | Denotes a party-in-interest | |
Note: Cost information has not been included because all investments are participant directed. |
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ASSOCIATED BANC-CORP | ||||
401(k) & EMPLOYEE STOCK | ||||
OWNERSHIP PLAN | ||||
/s/ Katey S. Smith | ||||
Katey S. Smith, Director of Colleague Care and Benefits | ||||
Dated: June 29, 2011 |
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Exhibit | ||
Number | Description | |
No 23
|
Consent of Independent Registered Public Accounting Firm |
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