Associated BancCorp (ASBC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Associated Banc Corp has a market cap of $2.17 billion; its shares were traded at around $12.79 with a P/E ratio of 13.7 and P/S ratio of 2.1. The dividend yield of Associated Banc Corp stocks is 1.6%.
The Consumer Banking segment consists of lending and deposit gathering to individuals and small businesses and also provides a variety of other wealth management products and services. The Consumer Banking segment had net income of $28 million in the first half of 2012, up $11 million compared to $17 million in the first half of 2011. Earnings increased as segment revenue grew $14 million to $265 million for the first half of 2012 compared to $251 million for the first half of 2011, primarily due to much higher mortgage banking income (up $37 million), offset by lower net interest income as a result of the lower rate environment and lower service charge and card-based fee income. The credit provision for loans increased $1 million to $10 million for the first half of 2012 due to the growth in the segments loan balances, partially offset by an improvement in credit quality as compared to the first half of 2011. Total noninterest expense for the first half of 2012 was $213 million, down $4 million from $217 million in the comparable period in 2011 primarily due to a $9 million reduction in FDIC insurance costs, offset by increases in personnel expense of $5 million. Average deposits were $9.4 billion for the first half of 2012, down $80 million from $9.5 billion in the first half of 2011. Average loan balances were $7.2 billion during the first half of 2012, up $522 million from $6.7 billion in the first half of 2011. The segments loan growth was primarily in the residential mortgage portfolio as the Corporation continued to retain much of its mortgage production throughout 2011 and into the first half of 2012. Average allocated capital increased $51 million to $589 million for the first half of 2012 reflecting the increase in the segments loan balances.
The Risk Management and Shared Services segment includes Corporate Risk Management, Finance, Treasury, Operations and Technology functions. Risk Management and Shared Services had net income of $26 million in the first half of 2012, up $ 22 million compared to $4 million for the comparable period in 2011. The primary components of the increase was a $51 million lower credit provision, reflecting the much lower provision at the consolidated total level, offset by a $10 million increase in expenses due to costs incurred to address certain BSA regulatory compliance issues and other corporate expense items. Average earning asset balances were $4.9 billion for the first half of 2012, down $1.6 billion from an average balance of $6.5 billion during the first half of 2011, reflecting the reduction in the Corporations investment portfolio.
The Consumer Banking segment had net income of $13 million in the second quarter of 2012, up $6 million compared to $7 million in the second quarter of 2011. Earnings increased as segment revenue grew $8 million to $132 million for the second quarter of 2012 compared to $124 million for the second quarter of 2011, primarily due to significantly higher mortgage banking income (up $21 million) and smaller deposit service charge and card-based fee income, which was partially offset by decreases in net interest income as a result of the lower interest rate environment in 2012. The credit provision for loans increased $1 million to $5 million for the quarter due to the growth in the segments loan balances as compared to the second quarter of 2011. Total noninterest expense for the second quarter of 2012 was $106 million, down $2 million from $108 million in the comparable quarter in 2011 primarily due to a $5 million reduction in FDIC insurance costs, partially offset by a $2 million increase in personnel expense and other net expense increases. Average deposits were $9.4 billion for the second quarter of 2012, down $134 million compared to $9.6 billion in the second quarter of 2011. Average loan balances were $7.2 billion during the second quarter of 2012, up $445 million compared to $6.7 billion in the second quarter of 2011. The segments loan growth was primarily in the residential mortgage portfolio as the Corporation continued to retain much of its mortgage production throughout 2011 and into the first quarter of 2012. Average allocated capital increased $45 million to $586 million for the second quarter of 2012 reflecting the increase in the segments loan balances.
Capital market fees, net (which include fee income from foreign currency and interest rate risk related services provided to our customers) were $6 million for the first half of 2012, compared to $1 million for the comparable six month period in 2011, primarily due to a favorable change in the credit valuation adjustment from improvements in credit quality. Other income of $4 million was $6 million lower than the first half of 2011, primarily due to a decrease in limited partnership income. Net asset losses of $9 million for 2012 were primarily attributable to a $6 million write-down on software placed into production during the second quarter of 2012, $6 million of losses on sales and other write-downs on other real estate owned, and a $3 million impairment charge on certain limited partnership investments, partially offset by a $6 million gain on the sale of three retail branches in rural western Illinois. Net asset losses of $7 million for 2011 were primarily attributable to losses on sales and other write-downs of other real estate owned.
Read the The complete Report
Associated Banc Corp has a market cap of $2.17 billion; its shares were traded at around $12.79 with a P/E ratio of 13.7 and P/S ratio of 2.1. The dividend yield of Associated Banc Corp stocks is 1.6%.
Highlight of Business Operations:
The Commercial Banking segment consists of lending and deposit gathering to businesses and governmental units and the support to deliver, fund and manage such banking services. The Commercial Banking segment had net income of $32 million in the first half of 2012, down $4 million compared to $36 million for the comparable period in 2011. The Corporation committed resources during the past year to grow this segment, including investments to expand into new markets (Houston, Cincinnati, Indianapolis, and Detroit) and new industry lending segments (power, oil and gas). As a result of these investments, segment revenue grew $7 million to $178 million for the first half of 2012 compared to $171 million for the first half of 2011. The credit provision for loans increased to $22 million for the first half of 2012 due to the growth in the segments loan balances, partially offset by improvement in credit quality as compared to the first half of 2011. Total noninterest expense for the first half of 2012 was $106 million, up $11 million from $95 million in the comparable period in 2011 as the segment hired additional commercial bankers to support these new markets and to enhance its presence in existing markets. Average loan balances were $7.2 billion for the first half of 2012, up $1.1 billion from an average balance of $6.1 billion during the first half of 2011, and average deposit balances were $4.3 billion for the first half of 2012, up $1.0 billion from average deposits of $3.3 billion during the first half of 2011, reflecting our investments and strategy to expand and grow the Commercial Banking segment. Average allocated capital increased $22 million to $753 million for the first half of 2012 reflecting the increase in the segments loan balances offset by an improvement in credit quality as compared to the first half of 2011.The Consumer Banking segment consists of lending and deposit gathering to individuals and small businesses and also provides a variety of other wealth management products and services. The Consumer Banking segment had net income of $28 million in the first half of 2012, up $11 million compared to $17 million in the first half of 2011. Earnings increased as segment revenue grew $14 million to $265 million for the first half of 2012 compared to $251 million for the first half of 2011, primarily due to much higher mortgage banking income (up $37 million), offset by lower net interest income as a result of the lower rate environment and lower service charge and card-based fee income. The credit provision for loans increased $1 million to $10 million for the first half of 2012 due to the growth in the segments loan balances, partially offset by an improvement in credit quality as compared to the first half of 2011. Total noninterest expense for the first half of 2012 was $213 million, down $4 million from $217 million in the comparable period in 2011 primarily due to a $9 million reduction in FDIC insurance costs, offset by increases in personnel expense of $5 million. Average deposits were $9.4 billion for the first half of 2012, down $80 million from $9.5 billion in the first half of 2011. Average loan balances were $7.2 billion during the first half of 2012, up $522 million from $6.7 billion in the first half of 2011. The segments loan growth was primarily in the residential mortgage portfolio as the Corporation continued to retain much of its mortgage production throughout 2011 and into the first half of 2012. Average allocated capital increased $51 million to $589 million for the first half of 2012 reflecting the increase in the segments loan balances.
The Risk Management and Shared Services segment includes Corporate Risk Management, Finance, Treasury, Operations and Technology functions. Risk Management and Shared Services had net income of $26 million in the first half of 2012, up $ 22 million compared to $4 million for the comparable period in 2011. The primary components of the increase was a $51 million lower credit provision, reflecting the much lower provision at the consolidated total level, offset by a $10 million increase in expenses due to costs incurred to address certain BSA regulatory compliance issues and other corporate expense items. Average earning asset balances were $4.9 billion for the first half of 2012, down $1.6 billion from an average balance of $6.5 billion during the first half of 2011, reflecting the reduction in the Corporations investment portfolio.
The Consumer Banking segment had net income of $13 million in the second quarter of 2012, up $6 million compared to $7 million in the second quarter of 2011. Earnings increased as segment revenue grew $8 million to $132 million for the second quarter of 2012 compared to $124 million for the second quarter of 2011, primarily due to significantly higher mortgage banking income (up $21 million) and smaller deposit service charge and card-based fee income, which was partially offset by decreases in net interest income as a result of the lower interest rate environment in 2012. The credit provision for loans increased $1 million to $5 million for the quarter due to the growth in the segments loan balances as compared to the second quarter of 2011. Total noninterest expense for the second quarter of 2012 was $106 million, down $2 million from $108 million in the comparable quarter in 2011 primarily due to a $5 million reduction in FDIC insurance costs, partially offset by a $2 million increase in personnel expense and other net expense increases. Average deposits were $9.4 billion for the second quarter of 2012, down $134 million compared to $9.6 billion in the second quarter of 2011. Average loan balances were $7.2 billion during the second quarter of 2012, up $445 million compared to $6.7 billion in the second quarter of 2011. The segments loan growth was primarily in the residential mortgage portfolio as the Corporation continued to retain much of its mortgage production throughout 2011 and into the first quarter of 2012. Average allocated capital increased $45 million to $586 million for the second quarter of 2012 reflecting the increase in the segments loan balances.
Capital market fees, net (which include fee income from foreign currency and interest rate risk related services provided to our customers) were $6 million for the first half of 2012, compared to $1 million for the comparable six month period in 2011, primarily due to a favorable change in the credit valuation adjustment from improvements in credit quality. Other income of $4 million was $6 million lower than the first half of 2011, primarily due to a decrease in limited partnership income. Net asset losses of $9 million for 2012 were primarily attributable to a $6 million write-down on software placed into production during the second quarter of 2012, $6 million of losses on sales and other write-downs on other real estate owned, and a $3 million impairment charge on certain limited partnership investments, partially offset by a $6 million gain on the sale of three retail branches in rural western Illinois. Net asset losses of $7 million for 2011 were primarily attributable to losses on sales and other write-downs of other real estate owned.
Read the The complete Report
