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8-K - FORM 8-K - ASSOCIATED BANC-CORP | c63897e8vk.htm |
Exhibit 99.1
NEWS RELEASE Investor Contact: Janet L. Ford, Investor Relations Director janet.ford@associatedbank.com 414-278-1890 Media Contact: Autumn Latimore, Public Relations Director autumn.latimore@associatedbank.com 414-278-1860 |
Associated
Banc-Corp Completes the Repurchase of $262.5 Million of TARP
Preferred Stock
GREEN BAY, Wis. April 6, 2011 Associated Banc-Corp (NASDAQ: ASBC) announced today that
it has completed the repurchase of 262,500 shares of the Series A Preferred Stock that it issued
to the U.S. Department of the Treasury under the Troubled Asset Relief Program (TARP) Capital
Purchase Program. Associated Banc-Corp paid the U.S. Treasury a total of $262.5 million, plus an
accrued dividend of $1.9 million. The partial repurchase represents half of the $525 million the
company received under the Capital Purchase Program. On March 28, 2011, Associated Banc-Corp
completed a public offering and sale of $300 million of 5.125 percent senior notes due 2016. A
portion of the net proceeds from the offering was used to repurchase the shares of Series A
Preferred Stock.
The debt offering and the partial repurchase of the TARP preferred stock are consistent with our
plans to repay the TARP funds as soon as possible and in the most shareholder-friendly manner
possible, said President and CEO Philip B. Flynn. We remain highly confident that we will
achieve our goal of repaying all of the TARP funds in 2011.
We believe the regulatory approval of this partial repayment is another indication of the
companys financial strength. Our pro forma capital ratios following the notes offering and the
repayment continue to exceed the requirements of our regulators and standards for
well-capitalized banks. This strong capital position provides us with flexibility as we continue
to execute our strategic plans for growth.
- more -
ASBC Completes the Repurchase of $262.5 Million of TARP Preferred Stock
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The following table outlines the companys reported capital ratios at December 31, 2010 and
adjusted to reflect the net proceeds from the $300 million sale of notes and the repurchase of
the Series A Preferred Stock:
As of December 31, 2010 | ||||||||
As Adjusted | ||||||||
for Notes | ||||||||
Issuance | ||||||||
and Series A | ||||||||
Preferred | ||||||||
Actual | Repurchase | |||||||
Tier 1 common equity to risk-weighted assets |
12.26 | % | 12.22 | % | ||||
Tier 1 risk-based capital ratio |
17.58 | % | 15.64 | % | ||||
Total risk-based capital ratio |
19.05 | % | 17.11 | % |
Associated Banc-Corp has paid a total of $60.6 million in dividends to the U. S. Treasury
since November 2008, when the company received the funds under the Capital Purchase Program.
About Associated Banc-Corp
Associated Banc-Corp (NASDAQ: ASBC) is one of the top 50
financial services holding companies operating in the United States.
At December 31, 2010, Associated had total assets of
$22 billion. Headquartered in Green Bay,
Wis., Associated has approximately 280 banking locations serving more than 150 communities in Wisconsin,
Illinois and Minnesota. The company offers a full range of banking services and other financial
products and services. More information about Associated Banc-Corp is available at
www.associatedbank.com.
Statements made in this document that are not purely historical are forward-looking
statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any
statements regarding managements 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 Companys most recent Annual Report filed on Form 10-K
as updated by the Companys most recent Form 10-Q.
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