SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to to
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Commission file number 0-5519 (Associated Banc-Corp)
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
ASSOCIATED BANC-CORP PROFIT SHARING AND RETIREMENT SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive officer:
ASSOCIATED BANC-CORP
112 North Adams Street
P.O. Box 13307
Green Bay, Wisconsin 54307-3307
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Associated Banc-Corp Retirement Program Committee has duly caused this Annual
Report to be signed on its behalf by the undersigned hereunto duly authorized.
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
/s/ Richard H. Langer
-------------------------------------------
Richard H. Langer, Chairman
Retirement Program Committee
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Financial Statements and Schedules
December 31, 1997 and 1996
(With Independent Auditors' Report Thereon)
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
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Page(s)
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Independent Auditors' Report
Statement of Net Assets Available for Plan Benefits, December 31, 1997
Statement of Net Assets Available for Plan Benefits, December 31, 1996
Statement of Changes in Net Assets Available for Plan Benefits,
Year Ended December 31, 1997
Statement of Changes in Net Assets Available for Plan Benefits,
Year Ended December 31, 1996
Notes to Financial Statements
Item 27a - Schedule of Assets Held for Investment Purposes,
December 31, 1997
Item 27d - Schedule of Reportable Transactions, Year Ended
December 31, 1997
<PAGE>
Independent Auditors' Report
The Board of Directors
Associated Banc-Corp
Profit Sharing and Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Associated Banc-Corp Profit Sharing and Retirement Savings Plan
(Plan) as of December 31, 1997 and 1996, and the related statements of changes
in net assets available for plan benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 1997 and 1996, and the changes in net assets available for plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 1997 and reportable transactions for
the year then ended are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information on the statement of net assets available for plan
benefits and the statement of changes in net assets available for plan benefits
is presented for purposes of additional analysis rather than to present the net
assets available for plan benefits of each fund for the years ended December 31,
1997 and 1996. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
May 22, 1998
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
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Associated
Principal Fixed Common Banc-Corp Self-
Balanced Preservation Income Stock Common Directed
Fund Fund Fund Fund Stock Fund Funds Other Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Common trust funds $ 4,468,401 --- 846,690 42,139,494 --- 3,444,245 --- 50,898,830
Government securities 11,631,389 --- 951,072 --- --- --- --- 12,582,461
Corporate bonds --- --- 1,526,478 --- --- --- --- 1,526,478
Common stocks 14,326,039 --- --- --- 41,973,388 410,834 --- 56,710,261
Loans to participants --- --- --- --- --- --- 484,487 484,487
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Total Investments 30,425,839 --- 3,324,240 42,139,494 41,973,388 3,855,079 484,487 122,202,517
Cash and cash equivalents 648,835 5,827,754 1,866,209 (552) 231,733 44,321 149,494 8,767,794
Accrued interest and
dividends receivable 203,640 26,599 38,261 38 1,306 2,286 1,237 273,367
Cash surrender value of
insurance --- --- --- --- --- --- 429,360 429,360
Employer contribution
receivable 915,570 380,509 229,616 1,491,158 1,513,521 --- --- 4,530,374
Participant contributions
receivable 40,973 9,785 9,496 67,810 71,339 --- (117,724) 81,679
Due from (to) other funds 26,313 (30,692) (4,398) 9,425 2,023 --- (2,671) ---
Other (2,862) (536) (479) (3,857) (3,863) (636) (459) (12,692)
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Net assets available for
plan benefits $32,258,298 6,213,419 5,462,945 43,703,516 3,789,447 3,901,050 943,724 136,272,399
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits
December 31, 1996
<TABLE>
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Associated
Principal Fixed Common Banc-Corp Self-
Balanced Preservation Income Stock Common Directed
Fund Fund Fund Fund Stock Fund Funds Other Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Common trust funds $ 2,450,729 --- --- 26,628,386 --- 2,911,338 --- 31,990,453
Government securities 10,725,732 --- 1,710,840 --- --- 25,007 --- 12,436,572
Corporate bonds 11,248,091 --- 3,538,890 --- 25,351,675 355,892 --- 3,563,897
Common stocks --- --- --- --- --- --- --- 36,955,658
Loans to participants --- --- --- --- --- --- 344,998 344,998
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Total investments 24,424,552 --- 5,249,730 26,628,386 25,351,675 3,292,237 344,998 85,291,578
Cash and cash equivalents 562,247 5,268,007 152,356 719,973 202,772 135,838 43,168 7,084,361
Accrued interest and
dividends receivable 188,814 23,342 94,838 1,285 206 2,966 3,784 3 15,235
Cash surrender value of
insurance --- --- --- --- --- --- 467,404 467,404
Employer contribution
receivable 863,503 402,954 242,129 1,148,304 1,283,110 --- --- 3,940,000
Participant contributions
receivable --- --- --- --- --- --- --- ---
Due from (to) other funds 29,460 (18,798) (4,000) 15,315 4,693 --- (26,670) ---
Other (3,056) (642) (667) (3,320) (3,102) (352) 2,590 (8,549)
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Net assets available for
plan benefits $26,065,520 5,674,863 5,734,386 28,509,943 26,839,354 3,430,689 835,274 97,090,029
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits
Year Ended December 31, 1997
<TABLE>
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Associated
Principal Fixed Common Banc-Corp Self-
Balanced Preservation Income Stock Common Directed
Fund Fund Fund Fund Stock Fund Funds Other Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment Income:
Net realized and
unrealized gains/(losses) $ 4,749,736 --- 104,468 10,475,996 14,834,472 666,718 --- 30,831,390
Interest and dividends 910,633 325,866 325,685 29,646 851,097 30,848 35,961 2,509,736
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Subtotal 5,660,369 325,866 430,153 10,505,642 15,685,569 697,566 35,961 33,341,126
Participant contributions 651,819 177,446 162,910 1,136,828 1,101,213 --- --- 3,230,216
Employer contributions 915,570 380,509 229,616 1,491,159 1,513,521 --- --- 4,530,375
Rollover contributions 253,711 15,096 34,941 144,815 114,171 --- --- 562,734
Interfund transfers (890,891) 77,405 (996,498) 2,270,153 (460,169) --- --- ---
Other (23,512) (49,439) (5,378) 4,186 (3,052) --- 110,596 33,401
Transfer from other plans 328,719 1,519,275 184,154 756,409 290,930 --- --- 3,079,487
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Total additions 6,895,785 2,446,158 39,898 16,309,193 18,242,183 697,566 146,557 44,777,339
Deductions:
Distribution to participants 592,537 1,889,996 288,742 940,472 1,204,555 215,694 36,856 5,168,852
Administrative expenses 110,470 17,606 22,597 175,147 87,535 11,511 1,251 426,117
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Total deductions 703,007 1,907,602 311,339 1,115,619 1,292,090 227,205 38,107 5,594,969
Net increase/(decrease)
in net assets available
for plan benefits 6,192,778 538,556 (271,441) 15,193,573 16,950,093 470,361 108,450 39,182,370
Net assets available for
plan benefits:
Beginning of year 26,065,520 5,674,863 5,734,386 28,509,943 26,839,354 3,430,689 835,274 97,090,029
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End of year $32,258,298 6,213,419 5,462,945 43,703,516 43,789,447 3,901,050 943,724 136,272,399
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits
Year Ended December 31, 1996
<TABLE>
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Associated
Principal Fixed Common Banc-Corp Self-
Balanced Preservation Income Stock Common Directed
Fund Fund Fund Fund Stock Fund Funds Other Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Net realized and
unrealized gains/(losses) $ 1,972,568 --- (200,577) 4,506,788 1,037,136 277,294 --- 7,593,209
Interest and dividends 795,914 283,787 353,753 42,279 679,839 32,141 30,533 2,218,246
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Subtotal 2,768,482 283,787 153,176 4,549,067 1,716,975 309,435 30,533 9,811,455
Participant contributions 437,778 145,106 119,130 618,726 716,074 --- --- 2,036,814
Employer contributions 863,503 402,954 242,129 1,148,304 1,283,110 --- --- 3,940,000
Rollover contributions 428,293 22,549 42,605 159,955 279,437 --- --- 932,839
Interfund transfers (296,120) (353,689) (705,514) 1,675,600 (320,277) --- --- ---
Other 98,075 (34,315) (2,588) 50,513 19,521 --- 114,819 246,025
Transfer from other plans 339,089 190,213 77,662 678,367 336,679 --- --- 1,622,010
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Total additions 4,639,100 656,605 (73,400) 8,880,532 4,031,519 309,435 145,352 18,589,143
Deductions:
Distributions to participants 671,112 649,933 267,123 922,276 1,286,363 290,269 185,630 4,272,706
Administrative expenses 102,024 17,546 25,059 128,856 72,302 11,744 1,222 358,753
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Total deductions 773,136 667,479 292,182 1,051,132 1,358,665 302,013 186,852 4,631,459
Net increase/(decrease)
in net assets available
for plan benefits 3,865,964 (10,874) (365,582) 7,829,400 2,672,854 7,422 (41,500) 13,957,684
Net assets available for
plan benefits:
Beginning of year 22,199,556 5,685,737 6,099,968 20,680,543 24,166,500 3,423,267 876,774 83,132,345
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End of year $26,065,520 5,674,863 5,734,386 28,509,943 26,839,354 3,430,689 835,274 97,090,029
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
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(1) Description of the Plan
The following brief description of the Associated Banc-Corp Profit Sharing
and Retirement Savings Plan (Plan) is provided for general information. The
Plan contains both profit sharing provisions and retirement savings
provisions. Participants should refer to the summary plan description for
more complete information.
Background
Associated Banc-Corp (Company) has established the Associated Banc-Corp
Profit Sharing and Retirement Savings Plan, a defined contribution plan.
The profit sharing provisions of the Plan provide for discretionary
employer contributions. The retirement savings provisions of the Plan
provides for employee contributions complying with the provisions of
Internal Revenue Code (Code) Section 401(k) as well as discretionary
employer contributions. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Plan Mergers
Assets were merged into the Plan as follows during the years ended December
31, 1997 and 1996:
On September 30, 1996, the net assets of First National Bank of Portage
Incentive Savings Plan totaling $954,541 were merged into the Plan.
On October 1, 1996, the net assets of the State Bank of Lodi Money Purchase
Pension Plan totaling $667,469 were merged into the Plan.
On March 3, 1997, net assets of the Mid-America National Bank Savings and
Investment Plan totaling $86,566 were merged into the Plan.
On March 18, 1997, the net assets of Farmers and Merchants Bank of
Reedsburg totaling $2,238,065 were merged into the Plan.
On October 3, 1997, net assets of the Central Bank 401(K) Savings Plan and
Trust totaling $756,711 were merged into the Plan.
Participants
Employees of the Company and its subsidiaries that have adopted the Plan
are eligible to participate in the profit sharing provisions and in the
discretionary employer retirement savings contribution provisions of the
Plan on the January 1 of the year in which 1,000 hours of service are
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Notes to Financial Statements
- --------------------------------------------------------------------------------
completed. Employees are eligible to participate in the employee retirement
savings contribution portion of the Plan on the earlier of the January 1 or
July 1 following the date of employment, if it is expected that 1,000 hours
of service will be completed in subsequent plan years.
Contributions
In conjunction with the retirement savings provisions of the Plan,
participants can elect to contribute an amount between 1% and a maximum
percentage set by the Retirement Program Committee (10% in 1997 and 6% in
1996) of their compensation in multiples of 1% to the Plan by means of
regular payroll deductions. Participants are also allowed to contribute
amounts qualifying as rollover contributions under Section 402(c)(4) of the
Code.
The Plan provides for discretionary Company contributions under both the
profit sharing and retirement saving provisions of the Plan. Such
contributions are allocated to each participant's account based upon total
participant's compensation, as defined by the Plan for the year.
Vesting
Participants are 100% vested at all times in their benefits under the
retirement savings portion of the Plan. The following is a schedule of
vesting in the Company's discretionary profit sharing contribution:
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Years of Service Vested Percentage
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Less than three 0%
Three but less than four 20%
Four but less than five 40%
Five but less than six 60%
Six but less than seven 80%
Seven or more 100%
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The Plan document specifies that forfeitures are allocated based upon the
ratio of each participant's compensation for the plan year to the total
compensation of all participants for respective Employing Unit.
Investment of Plan Assets
Participants have the right to direct that investments be made in either
the Balanced Fund, Principal Preservation Fund, Fixed Income Fund, Common
Stock Fund, Associated Banc-Corp Common Stock Fund, or a combination of
funds. The following is a brief description of each fund:
Balanced Fund - Invests primarily in fixed income investments, common
stocks, and common trust funds managed by the Company's trust departments.
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Notes to Financial Statements
- --------------------------------------------------------------------------------
Money Market Fund - Invests primarily in certificates issued or guaranteed
by the United States Government.
Intermediate Term Bond Fund - Invests primarily in U.S. Treasury
obligations, fixed income corporate bonds, and common trust funds with
similar characteristics.
Diversified Stock Fund - Invests primarily in common stocks, common funds
managed by the Company's trust departments, or mutual funds expected to
achieve capital and income growth.
Associated Banc-Corp Common Stock Fund - Invests in Associated Banc-Corp
common stock.
Participants can elect to invest in one of the aforementioned funds or in
10% increments in two or more funds. The election can be changed quarterly
each January 1, April 1, July 1, and October 1.
Certain participants previously had the right to maintain a separate trust
for self-directed investments. Current plan provisions do not provide for
this. Plan assets are held in trust with subsidiary banks of the Company
(trustee).
A participant in the Plan can receive a loan for emergency conditions which
result from medical expenses in the participant's immediate family,
establishing or preserving the home in which the participant resides, or
for the purpose of providing an education for the participant, spouse, and
children of the participant. 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. A participant may not request
a loan for less than $1,000.
Investment income is allocated to individual participants' accounts
quarterly based on the balance in the account at the beginning of the
quarter adjusted for activity during the quarter.
Distributions
Distributions are made in the form of lump-sum payments or payments over a
period in monthly, quarterly, semi-annual or annual installments.
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 the 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 end of the most recent accounting period.
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Notes to Financial Statements
- --------------------------------------------------------------------------------
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.
Reclassification
Certain amounts in prior years report have been reclassified to conform
with the 1997 presentation.
(2) Summary of Significant Accounting Policies
The accounting policies followed by the Plan conform with generally
accepted accounting principles for such plans. The more significant
policies are as follows:
Basis of Presentation
The accompanying financial statements have been prepared on the accrual
basis.
Investments
Investments are quoted at market prices. Securities for which no quoted
market price are available are valued at estimated fair value. Short-term
investments are stated at cost, which approximates fair value. Plan assets
are held with the trustee. Purchases and sales of securities are recorded
on a trade-date basis.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires plan administrator estimates and
assumptions that affect the reported amounts of assets available for
benefits and plan benefit obligations and disclosure of contingent assets
and liabilities at the date of the financial statements. Actual results
could differ from those estimates.
(3) Investments
The fair value of investments that represent 5% or more of the Plan's net
assets at December 31 are presented in the following table:
1997 1996
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Associated Banc-Corp Common Stock $42,348,238 25,374,175
Associated Bank, N.A. Common Stock Fund 711,555 12,553,953
Associated Bank, N.A. Diversified Stock Fund 42,139,494 ---
Associated Foreign Equity Fund 234,033 5,136,951
Dreyfus Government Cash Management Fund 5,827,754 5,268,007
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<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Notes to Financial Statements
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(4) Transactions with Related Parties
The Associated Banc-Corp common stock fund and the common stock fund of the
Plan at December 31, 1997 and 1996 included 768,222 shares and 605,510
shares, respectively, of common stock of the Company with fair values of
$42,348,238 and $25,734,175, respectively. Dividend income from Company
stock totaled $838,108 and $685,273 in 1997 and 1996, respectively.
(5) Benefits Payable
Amounts as presented in the accompanying financial statements differ from
the amounts reported in Form 5500 due to benefits payable to terminated and
retired participants.
As of December 31, 1997 and 1996, net assets available for plan benefits
include vested balances for terminated and retired participants of
approximately $1,172,000 and $820,000, respectively, were recorded as
benefits payable on the Form 5500 but not on the accompanying Financial
statements.
(6) Income Taxes
The Plan administrator has received a favorable tax determination letter,
dated May 22, 1995, 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. 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.
(7) Subsequent Event
On October 29, 1997, Associated Banc-Corp merged with First Financial
Corporation (FFC). This transaction was accounted for as a pooling of
interests. On January 5, 1998, the net assets of FFC's 401(K) Profit
Sharing Plan, representing $144,266,109 in cash, were merged into the Plan.
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING & RETIREMENT SAVINGS PLAN
EMPLOYER IDENTIFICATION NUMBER: 39-1098068
PLAN NUMBER: 002
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
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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 Cost Value
- --------------------------------------------------------------------------------
United States Gov't Agency
Securities:
Federal Home Loan Mtg Corp. 7.010%, due 03/15/2006, $200,000 $199,751
Callable 03/15/1999
@100 par, par value
$200,000
Federal Home Loan Mtg Corp. 6.950%, due 03/25/2004, 247,960 252,421
Callable 03/25/1999
@ 100 par, par value
$250,000
Federal National Mtg Assn. 6.240%, due 08/19/2003, 250,000 248,925
Callable 08/19/1996
@ 100 par, par value
$250,000
Federal National Mtg Assn. 7.000%, due 03/09/2006, 250,000 249,975
Callable 03/09/1998
@ 100 par, par value
$250,000
U.S. Treasury Note 6.375%, due 08/15/2002, 1,503,203 1,538,910
par value $1,500,000
U.S. Treasury Note 5.125%, due 02/28/1998, 497,715 499,845
par value $500,000
U.S. Treasury Note 5.125%, due 03/31/1998, 299,151 299,907
par value $300,000
U.S. Treasury Note 5.125%, due 06/30/1998, 200,000 199,875
par value $200,000
U.S. Treasury Note 5.750%, due 08/15/2003, 1,460,859 1,500,938
par value $1,500,000
U.S. Treasury Note 4.750%, due 08/31/1998, 199,688 198,938
par value $200,000
<PAGE>
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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 Cost Value
- --------------------------------------------------------------------------------
U.S. Treasury Note 5.875%, due 02/15/2004, 494,766 504,533
par value $500,000
U.S. Treasury Note 5.500%, due 02/28/1999, 994,036 998,750
par value $1,000,000
U.S. Treasury Note 7.250%, due 05/15/2004, 395,688 431,626
par value $400,000
U.S. Treasury Note 6.750%, due 05/31/1999, 99,375 507,500
par value $500,000
U.S. Treasury Note 7.125%, due 02/29/2000, 400,000 411,626
par value $400,000
U.S. Treasury Note 6.750%, due 04/30/2000, 199,458 204,563
par value $200,000
U.S. Treasury Note 5.875%, due 06/30/2000, 599,232 602,814
par value $600,000
U.S. Treasury Note 5.625%, due 02/28/2001, 997,630 997,500
par value $1,000,000
U.S. Treasury Note 6.250%, due 04/30/2001, 998,770 1,015,625
par value $1,000,000
U.S. Treasury Note 5.875%, due 10/31/1998, 499,531 501,095
par value $500,000
U.S. Treasury Note 6.250%, due 02/28/2002, 497,695 509,061
par value $500,000
U.S. Treasury Note 6.375%, due 05/15/2000, 498,906 507,658
par value $500,000
U.S. Treasury Note 5.875%, due 07/31/1999, 199,796 200,625
par value $200,000
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Total Agency Securities 12,383,459 12,582,461
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<PAGE>
- --------------------------------------------------------------------------------
Description of investment
including maturity date,
Identity of issue, borrower, rate of interest, collateral Current
lessor, or similar party par, or maturity value Cost Value
- --------------------------------------------------------------------------------
Corporate Bonds:
Banc One 7.375%, due 12/01/2002, 248,345 261,050
par value $250,000
Campbell Soup 8.580%, due 03/15/2001, 199,790 214,640
par value $200,000
Du Pont 9.150%, due 04/15/2000, 99,831 106,680
par value $100,000
Ford Motor Co. 7.250%, due 10/01/2008, 248,893 266,100
par value $250,000
Merrill Lynch 7.150%, due 07/30/2012, 100,000 104,230
par value $100,000
J P Morgan & Co. 6.250%, due 12/15/2005, 324,139 321,003
par value $325,000
SCE Capital Corp. 7.375%, due 12/15/2003, 248,227 252,775
par value $250,000
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Total Corporate Bonds 1,469,225 1,526,478
- --------------------------------------------------------------------------------
Corporate Stock:
Abbott Labs Common Stock, 5,200 shares 82,696 340,600
American International
Group Inc. Common Stock, 4,500 shares 173,855 489,375
Amoco Corp. Common Stock, 3,300 shares 158,755 280,913
*Associated Banc-Corp Common Stock, 768,222
shares 16,089,626 42,348,238
Atlantic Richfield Co. Common Stock, 3,200 shares 154,114 256,400
Auto Data Process Common Stock, 6,000 shares 103,780 368,250
Baltimore Gas & Electric Co. Common Stock, 1,200 shares 23,568 40,950
Boston Scientific Corp. Common Stock, 1,200 shares 54,246 55,050
Catalina Marketing Corp. Common Stock, 2,200 shares 101,314 101,750
<PAGE>
- --------------------------------------------------------------------------------
Description of investment
including maturity date,
Identity of issue, borrower, rate of interest, collateral Current
lessor, or similar party par, or maturity value Cost Value
- --------------------------------------------------------------------------------
Cendant Corp. Common Stock, 3,000 shares 75,922 103,125
Central & Southwest Corp. Common Stock, 2,400 shares 45,633 64,951
Circuit City Grp. Common Stock, 1,400 shares 51,854 49,788
Cisco Systems Inc. Common Stock, 1,950 shares 95,537 108,713
Coca Cola Co. Common Stock, 5,000 shares 30,640 333,440
Colgate Palmolive Co. Common Stock, 4,800 shares 115,470 352,800
Conagra Inc. Common Stock, 6,000 shares 134,428 198,750
Diebold Inc. Common Stock, 8,550 shares 137,564 432,844
Disney Walt Co. Common Stock, 4,179 shares 199,825 413,721
Echelon Intl. Corp. Common Stock, 107 shares 1,419 2,401
Federal National Mortgage
Assn. Common Stock, 6,000 shares 102,582 342,378
Firstar Corp. Common Stock, 3,600 shares 79,830 152,777
Florida Progress Corp. Common Stock, 1,600 shares 50,633 62,800
Franklin Resources Inc. Common Stock, 2,100 shares 77,140 182,570
General Elec Co. Common Stock, 6,000 shares 96,493 440,250
Gillette Co. Common Stock, 5,000 shares 71,254 502,190
Hewlett Packard Co. Common Stock, 6,000 shares 86,943 374,250
Hubbell Inc. Common Stock, 6,294 shares 134,180 310,376
Illinois Cent Corp. Common Stock, 6,000 shares 136,200 204,378
Illinois Tool Works Inc. Common Stock, 4,000 shares 80,850 240,500
Interpublic Group Common Stock, 3,000 shares 91,910 149,439
Kimberly Clark Corp. Common Stock, 3,000 shares 155,801 147,939
LG and E Energy Corp. Common Stock, 3,000 shares 22,906 74,439
Lucent Technologies Inc. Common Stock, 3,972 shares 206,579 317,264
<PAGE>
- --------------------------------------------------------------------------------
Description of investment
including maturity date,
Identity of issue, borrower, rate of interest, collateral Current
lessor, or similar party par, or maturity value Cost Value
- --------------------------------------------------------------------------------
Manpower Inc. Common Stock, 3,800 shares 144,738 133,950
MCI Communications Corp. Common Stock, 5,000 shares 144,675 214,065
Medtronic Inc. Common Stock, 16,000 shares 74,939 840,000
Merck & Co. Inc. Common Stock, 5,000 shares 120,058 530,000
Microsoft Corp. Common Stock, 1,400 shares 47,600 180,950
Molex Inc. Common Stock, 12,208 shares 162,263 392,182
Motorola Inc. Common Stock, 3,000 shares 134,055 171,564
New Century Energies Inc. Common Stock, 1,235 shares 22,868 59,203
New England Electric System Common Stock, 500 shares 15,812 21,375
Norwest Corp. Common Stock, 3,600 shares 102,168 139,500
Pitney Bowes Inc. Common Stock, 4,300 shares 124,571 386,733
Public SVC Enterprise
Grp Inc. Common Stock, 1,600 shares 44,724 50,901
SBC Communications Inc. Common Stock, 4,000 shares 125,257 293,000
Schering Plough Corp. Common Stock, 4,800 shares 137,895 298,200
Service Corp. Intl. Common Stock, 5,000 shares 145,533 183,750
Sigma Aldrich Corp. Common Stock, 7,600 shares 167,063 302,100
SLM Holding Corp. Common Stock, 3,000 shares 125,807 417,375
Staples Inc. Common Stock, 6,000 shares 117,750 166,500
State Street Corp. Common Stock, 7,400 shares 94,932 430,591
Sungard Data Systems Inc. Common Stock, 13,200 shares 140,663 407,550
Texaco Inc. Common Stock, 6,000 shares 192,043 326,250
Texas Instr Inc. Common Stock, 8,000 shares 74,473 360,000
Walgreen Co. Common Stock, 16,800 shares 122,255 527,100
WPS Resources Corp. Common Stock, 1,000 shares 21,795 33,813
- --------------------------------------------------------------------------------
Total Corporate Stocks 21,827,484 56,710,261
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Description of investment
including maturity date,
Identity of issue, borrower, rate of interest, collateral Current
lessor, or similar party par, or maturity value Cost Value
- --------------------------------------------------------------------------------
Common Funds:
*Associated Bank, N.A.
Common Stock Fund 4,950 units 108,728 711,555
*Associated Bank, N.A.
Regional Bank Fund 1,350 units 68,646 197,190
*Associated Bank, N.A.
Capital Appreciation Fund 42,125 units 816,998 2,274,493
*Associated Bank, N.A.
Balanced Fund 19,014 units 1,000,000 1,028,389
*Associated Bank, N.A.
Equity Income Fund 4,444 units 107,127 224,929
*Associated Bank, N.A.
Diversified Stock Fund 450,849 units 39,130,728 42,139,494
*Associated Bank, N.A.
Foreign Equity Fund 7,260 units 89,346 234,033
*Associated Bank, N.A.
Short Term Bond Fund 114,604 units 1,155,932 1,323,433
*Associated Bank, N.A.
Intermediate Term
Bond Fund 172,759 units 2,111,338 2,765,314
- --------------------------------------------------------------------------------
Total Common Funds 44,588,843 50,898,830
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Loans to Participants (7.00% - 10.65%) 484,487 484,487
- --------------------------------------------------------------------------------
Total Investments Held $80,753,498 $122,202,517
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Description of investment
including maturity date,
Identity of issue, borrower, rate of interest, collateral Current
lessor, or similar party par, or maturity value Cost Value
- --------------------------------------------------------------------------------
Cash Equivalents:
Dreyfus Cash Management Fund $2,940,040 $2,940,040
Dreyfus Government Cash Mgmt. Fund 5,827,754 5,827,754
- --------------------------------------------------------------------------------
Total Cash Equivalents $8,767,794 $8,767,794
- --------------------------------------------------------------------------------
*Denotes a party-in-interest
See accompanying independent auditors' report
<PAGE>
ASSOCIATED BANC-CORP
PROFIT SHARING AND RETIREMENT SAVINGS PLAN
Item 27d - Schedule of Reportable Transactions
Employer Identification Number 39-109-8068
Plan Number 002
Year Ended December 31, 1997
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
Current
Expense Value of
Incurred Asset at
Identity of Party Description Purchase Selling Lease With Cost of Transaction Net Gain/
Involved of Assets Price Price Rental Transaction Asset Date Loss
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Associated Bank, N.A.* Common Stock Fund $ 1,239,357 --- --- --- 1,239,357 1,239,357 ---
--- 16,998,859 --- --- 7,865,310 16,998,859 9,133,549
Associated Bank, N.A.* Diversified Stock Fund 40,015,092 --- --- --- 40,015,092 40,015,092 ---
--- 918,135 --- --- 4,321,008 918,135 33,771
Associated Bank, N.A.* Foreign Equity Fund 758,459 --- --- --- 758,459 758,459 ---
--- 6,737,263 --- --- 884,364 6,737,263 2,416,255
Dreyfus Cash Management Fund 37,587,127 --- --- --- 37,587,127 37,587,127 ---
--- 32,693,054 --- --- 32,693,054 32,693,054 ---
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Denotes a party in interest
See accompanying independent auditors' report
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
Contents
Report of Independent Auditors
Financial Statements
Statements of Net Assets Available for Plan Benefits
Statements of Changes in Net Assets Available for Plan Benefits
Notes to Financial Statements
Supplemental Schedules
Line 27(a) - Schedule of Assets Held for Investment Purposes
Line 27(d) - Schedule of Reportable Transactions
<PAGE>
Report of Independent Auditors
Trustees
First Financial Corporation 401(k)
Profit-Sharing Plan and Trust
We have audited the accompanying statements of net assets available for plan
benefits of the First Financial Corporation 401(k) Profit-Sharing Plan and Trust
(the Plan) as of December_31, 1997 and 1996, and the related statements of
changes in net assets available for plan benefits for the years then ended.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan at
December_31, 1997 and 1996, and the changes in its net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December_31, 1997, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The fund information in the
statement of net assets available for plan benefits and the statement of changes
in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and changes in net assets available for plan benefits of each fund. The
supplemental schedules and fund information have been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, are fairly stated in all material respects in relation to the financial
statements taken as a whole.
June 12, 1998
<PAGE>
First Financial Corporation
401 (k) Profit-Sharing Plan and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
Marshall Marshall
Money Intermediate Marshall Employer Employer Employer
Market Bond Max-Cap CD Stock Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value:
Mutual funds $- $- $- $- $ - $ -
Common stocks - - - - 110,722,311
Interest-bearing deposit - - - - - -
Notes receivable from participants - - - - - 2,069,025
-------------------------------------------------------------------------------------------
Total investments - - - - 110,722,311 2,069,025
Cash - - - - 5,616,831 -
Due from brokers - - - - 6,020,558 -
Accrued interest - - - - 6,768 -
Employer contributions receivable - - - - - -
Participant contributions receivable - - - - - -
-------------------------------------------------------------------------------------------
Total assets - - - - 122,366,468 2,069,025
Liabilities
Other payables - - - - - -
Due to brokers - - - - - -
-------------------------------------------------------------------------------------------
Net assets available for
plan benefits $- $ - $- $- $122,366,468 $2,069,025
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401 (k) Profit-Sharing Plan and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
Employer Marshall Marshall
Advance Equity Mid-Cap
Contribution Income Stock
Fund Fund Fund Other Total
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value:
Mutual funds $- $- $- $ - $ -
Common stocks - - - - 110,722,311
Interest-bearing deposit - - - - -
Notes receivable from participants - - - - 2,069,025
-------------------------------------------------------------------------------------------
Total investments - - - - $112,791,336
Cash - - - - 5,616,831
Due from brokers - - - 21,829,586 27,850,144
Accrued interest - - - 39,859 46,627
Employer contributions receivable - - - 3,468,852 3,468,852
Participant contributions receivable - - - - -
-------------------------------------------------------------------------------------------
Total assets - - - 25,338,297 149,773,790
Liabilities
Other payables - - - - -
Due to brokers - - - - -
-------------------------------------------------------------------------------------------
Net assets available for
plan benefits $- $- $- $25,338,297 $149,773,790
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401 (k) Profit-Sharing Plan and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1996
<TABLE>
Marshall Marshall
Money Intermediate Marshall Employer Employer Employer
Market Bond Max-Cap CD Stock Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value:
Mutual funds $ - $2,583,732 $ - $ - $ - $ -
Common stocks - - - - 66,065,708 -
Interest-bearing deposit 2,286,777 70,371 6,108 2,130,926 2,687,800 -
Notes receivable from participants - - - - - 1,527,617
-------------------------------------------------------------------------------------------
Total investments 2,286,777 2,654,103 6,108 2,130,926 68,753,508 1,527,617
Cash - - - - 83,053 -
Due from brokers - - 7,988,619 - 649,659 -
Accrued interest 9,317 12,704 1 2,109 987 9,542
Employer contributions receivable 3,675 5,911 17,085 4,185 57,308 -
Participant contributions receivable 1,002 2,121 4,803 945 17,191 -
-------------------------------------------------------------------------------------------
Total assets 2,300,771 2,674,839 8,016,616 2,138,165 69,561,706 1,537,159
Liabilities
Other payables 241 73 112 52 9,834 3,461
Due to brokers - 70,371 - - - -
-------------------------------------------------------------------------------------------
Net assets available for
plan benefits $2,300,530 $2,604,395 $8,016,504 $2,138,113 $69,551,872 $1,533,698
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401 (k) Profit-Sharing Plan and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1996
<TABLE>
Employer Marshall Marshall
Advance Equity Mid-Cap
Contribution Income Stock
Fund Fund Fund Other Total
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value:
Mutual funds $ - $133,795 $156,681 $ - $ 2,874,208
Common stocks - - - - 66,065,708
Interest-bearing deposit - 133,795 156,681 - 7,472,458
Notes receivable from participants - - - - 1,527,617
-------------------------------------------------------------------------------------------
Total investments - 267,590 313,352 - $ 77,939,991
Cash - - - - 83,053
Due from brokers - - - - 8,638,278
Accrued interest - 19 22 - 34,701
Employer contributions receivable - - - - 88,164
Participant contributions receivable - - - - 26,062
-------------------------------------------------------------------------------------------
Total assets - 267,609 313,384 - 86,810,249
Liabilities
Other payables - 10,914 22 - 24,709
Due to brokers - 133,795 156,681 - 360,847
-------------------------------------------------------------------------------------------
Net assets available for
plan benefits $ - $122,900 $156,681 $ - $86,424,693
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Statement of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1997
<TABLE>
Marshall
Money Marshall Marshall Employer Employer Employer
Market Bond Max-Cap CD Stock Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions from First
Financial Corporation $ - $ - $ - $ - $ - $ -
Contributions from Plan
participants 30,590 27,430 - 43,034 1,112,938 -
Rollover of participants' funds
from other plans - - - 7,346,169 -
Investment income 97,567 75,851 4,554 123,094 2,020,642 138,877
Other 17,256 5,336 - - - -
-------------------------------------------------------------------------------------------
145,413 108,617 4,554 166,128 10,479,749 138,877
Deductions:
Administrative expenses 131 73 - 108 5,583 -
Payments to Plan participants 1,240,441 88,853 - 344,985 2,890,327 120,973
Other - - 16,973 22,357 6,612 8,369
-------------------------------------------------------------------------------------------
Net additions (1,095,159) 19,691 (12,419) (201,322) 7,577,227 9,535
Net realized and unrealized
appreciation (depreciation)
in aggregate fair value of
investments - 2,089 - (48) 50,795,469 -
Transfers (1,205,371) (2,626,175) (8,004,085) (1,936,743) (5,558,100) 525,792
-------------------------------------------------------------------------------------------
Net increase (decrease) (2,300,530) (2,604,395) (8,016,504) (2,138,113) 52,814,596 535,327
Net assets available for plan
benefits at beginning of year 2,300,530 2,604,395 8,016,504 2,138,113 69,551,872 1,533,698
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $ - $ - $ - $ - $122,366,468 $2,069,025
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Statement of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1997
<TABLE>
Employer Marshall Marshall
Advance Equity Mid-Cap
Contribution Income Stock
Fund Fund Fund Other Total
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions from First
Financial Corporation $ - $ - $ - $ 3,468,852 $3,468,852
Contributions from Plan
participants - 196,024 246,694 - 1,656,710
Rollover of participants' funds
from other plans - - - - 7,346,169
Investment income - 150,070 906 39,859 2,651,420
Other - 57,819 - - 80,411
-------------------------------------------------------------------------------------------
- 403,913 247,600 3,508,711 15,203,562
Deductions:
Administrative expenses - 112 - 6,961 12,968
Payments to Plan participants - 472,160 248,517 - 5,406,256
Other - - 33,875 10,233 98,419
-------------------------------------------------------------------------------------------
Net additions - (68,359) (34,792) 3,491,517 9,685,919
Net realized and unrealized
appreciation (depreciation)
in aggregate fair value of
investments - 1,421,884 1,443,784 - 53,663,178
Transfers - (1,476,425) (1,565,673) 21,846,780 -
-------------------------------------------------------------------------------------------
Net increase (decrease) - (122,900) (156,681) 25,338,297 62,349,097
Net assets available for plan
benefits at beginning of year - 122,900 156,681 - 86,424,693
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $ - $ - $ - $25,338,297 $149,773,790
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Statement of Changes in Net Assets Available for Plan
Benefits
Year ended December 31, 1996
<TABLE>
Marshall
Money Marshall Marshall Employer Employer Employer
Market Bond Max-Cap CD Stock Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions from First
Financial Corporation $162,117 $ 74,569 $ 17,085 $ 86,927 $ 1,217,455 $ -
Contributions from Plan
participants 41,287 103,403 248,260 55,147 951,995 -
Rollover of participants' funds
from other plans 3,761 - - - - -
Investment income 90,321 174,127 143,332 110,657 1,418,430 116,654
Other 4,515 5 69 92 1,175 -
-------------------------------------------------------------------------------------------
302,001 352,104 408,746 252,823 3,589,055 116,654
Deductions:
Administrative expenses 403 183 557 486 5,476 -
Payments to Plan participants 85,547 242,721 108,253 244,960 1,000,310 106,130
Other - - - - - 1,028
-------------------------------------------------------------------------------------------
Net additions 216,051 109,200 299,936 7,377 2,583,269 9,496
Net realized and unrealized
appreciation (depreciation)
in aggregate fair value of
investments - (123,594) 1,264,391 - 16,590,320 -
Transfers 260,945 (605,081) 806,341 (550,693) (304,439) 392,927
-------------------------------------------------------------------------------------------
Net increase (decrease) 476,996 (619,475) 2,370,668 (543,316) 18,869,150 402,423
Net assets available for plan
benefits at beginning of year 1,823,534 3,223,870 5,645,836 2,681,429 50,682,722 1,131,275
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $2,300,530 $2,604,395 $8,016,504 $2,138,113 $69,551,872 $1,533,698
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Statement of Changes in Net Assets Available for Plan
Benefits
Year ended December 31, 1996
<TABLE>
Employer Marshall Marshall
Advance Equity Mid-Cap
Contribution Income Stock
Fund Fund Fund Other Total
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions from First
Financial Corporation $ - $ 133,796 $ 156,681 $ - $1,848,630
Contributions from Plan
participants - - - - 1,400,092
Rollover of participants' funds
from other plans - - - - 3,761
Investment income - 19 22 177 2,053,739
Other - - - - 5,856
-------------------------------------------------------------------------------------------
- 133,815 156,703 177 5,312,078
Deductions:
Administrative expenses - - - - 7,105
Payments to Plan participants - 10,896 - 10,699 1,809,516
Other - 19 22 - 1,069
-------------------------------------------------------------------------------------------
Net additions - 122,900 156,681 (10,522) 3,494,388
Net realized and unrealized
appreciation (depreciation)
in aggregate fair value of
investments - - - (20,281) 17,710,836
Transfers - - - - -
-------------------------------------------------------------------------------------------
Net increase (decrease) - 122,900 156,681 (30,803) 21,205,224
Net assets available for plan
benefits at beginning of year - - - 30,803 65,219,469
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $ - $ 122,900 $ 156.681 $ - $86,424,693
===========================================================================================
</TABLE>
See accompanying notes.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Notes to Financial Statements
December 31, 1997
1. Description of the Plan
The following description of the First Financial Corporation 401(k)
Profit-Sharing Plan and Trust (the Plan) as of DecemberE31, 1997, provides only
general information. Participants should refer to the Summary Plan Description
for a more complete description of the Plan's provisions.
The Plan is a contributory defined contribution retirement plan that covers any
employee of First Financial Corporation (the Employer) or its successor (see
Note 3), who is at least 21 years of age and has completed a minimum of 1,000
hours of service during a consecutive twelve-month period. It is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Employer contributions to the Plan are made on a discretionary basis (profit
sharing). Employer contributions are allocated based on annual compensation.
Participants vest in employer contributions on a sliding scale and are fully
vested after 7 years. In addition, participants may contribute a tax deferred
amount each year which is limited by Internal Revenue Code (IRC) Section 401(k).
Participants may also contribute on an after-tax basis, subject to IRC
limitations. Participant tax deferred and after-tax contributions are 100%
vested immediately. A participant's account balance, both vested and unvested,
is invested as designated by the participant in one or a combination of the
following funds: Marshall Money Market Fund, Marshall Intermediate Bond Fund,
Marshall Max-Cap Fund, Employer CD Fund, Employer Stock Fund, Marshall Equity
Income Fund and the Marshall Mid-Cap Fund (see Note 3).
Employer contributions in 1997 and 1996 were also made through a matching
program whereby the Employer matched initial participant 401(k) contributions at
25% of the participant contribution up to a maximum matching contribution of
$100. The after-tax participant contributions are not matched by the Employer.
Benefits may be paid to a participant or beneficiary upon retirement, death,
disability or termination of employment. Benefits are payable in a lump-sum or
in equal installments over a period not to exceed the life expectancy of the
participant and designated beneficiary.
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Notes to Financial Statements (continued)
2. Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements. Estimates also affect the reported amounts of additions
and deductions during the reporting period. Although estimates are considered to
be fairly stated at the time that the estimates are made, actual results could
differ from those estimates.
Investments
Fair values of mutual funds and common stocks are determined by reference to
quoted redemption and market prices, respectively. Interest-bearing deposits and
notes receivable from participants are carried at cost, which approximates fair
value.
Administrative Expenses
Administrative expenses are generally paid by the Employer.
3. Plan Merger
Effective October 29, 1997, First Financial Corporation, the Plan's sponsor,
merged with Associated Banc-Corp (Associated). All shares of First Financial
Corporation stock, including shares held by the Plan, were converted to shares
of Associated stock using an exchange ratio of .765 shares of Associated stock
for each share of First Financial.
Effective on January 1, 1998, the assets of the Plan were merged with Associated
Banc-Corp Profit Sharing and Retirement Savings Plan. In connection with the
merger of the Plan, all investment options previously made by participants,
except Associated common stock, were liquidated. Beginning in 1998, participants
will select from among investment options currently available to participants of
the surviving plan.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Notes to Financial Statements (continued)
4. Investments
During 1997 and 1996, the Plan's investments are held by a bank-administered
trust fund. The Plan's investments (including investments bought, sold and held
during the year) appreciated (depreciated) in fair value as follows:
Net
Appreciation
in Fair Fair Value
Value at End
During Year of Year
-----------------------------------
Year ended December_31, 1997:
Fair value determined by reference
to quoted sources:
Common stocks $50,795,469 $110,722,311
Mutual funds 2,867,757 -
-----------------------------------
53,663,226 110,722,311
Assets carried at cost:
Cash - 5,616,831
Notes receivable from participants - 2,069,025
-----------------------------------
$53,663,226 $118,408,167
===================================
Year ended December_31, 1996:
Fair value determined by reference
to quoted sources:
Common stocks $16,570,040 $66,065,708
Mutual funds 1,140,796 2,874,208
-----------------------------------
17,710,836 68,939,916
Assets carried at cost:
Interest-bearing deposit - 7,472,458
Notes receivable from participants - 1,527,617
-----------------------------------
$17,710,836 $77,939,991
===================================
The fair values of individual investments that represent 5% or more of the
Plan's net assets are as follows:
December 31
1997 1996
-----------------------------------
Associated Banc-Corp common stock $110,722,311 $ -
First Financial Corporation common stock - 66,065,708
Federated Index TR Max-Cap Fund - -
Marshall Money Market Fund - 5,549,652
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Notes to Financial Statements (continued)
5. Income Tax Status
The Internal Revenue Service has ruled on September 8, 1995 that the Plan
qualifies under Section 401(a) of the IRC and is, therefore, not subject to tax
under present income tax laws. Once qualified, the Plan is required to operate
in conformity with the IRC to maintain its qualification. The plan administrator
is not aware of any course of action or series of events that have occurred that
might adversely affect the Plan's qualified status.
6. Transactions with Parties-in-Interest
The Plan owned 2,008,568 shares of Associated Banc-Corp common stock, with a
fair value of $110,722,311 at December 31, 1997. The Plan owned 2,696,560 shares
of First Financial Corporation common stock, with a fair value of $66,065,708 at
December 31, 1996. Dividends of $.74 and $.60 per share were declared and paid
on the Employer's common stock in 1997 and 1996, respectively. Fees paid by the
Employer during the year for legal, accounting and other services provided by
parties-in-interest were based on customary and reasonable rates.
During 1997 and 1996, the Plan received $98,121 and $102,429 in interest from
the Employer relating to its certificates of deposit, which totaled $0 and
$1,922,806 at December_31, 1997 and 1996, respectively.
7. Plan Termination
Although it has not expressed any intent to do so, the Employer has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100% vested in their accounts. (See Note 3 regarding
the merger of the Plan.)
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Employer Identification Number 39-1044853
Plan Number 001
Line 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1997
Shares,
Units or
Principal Current
Amount Description Cost Value
- --------------------------------------------------------------------------------
Common stocks -
2,008,568 Associated Banc-Corp* $28,121,752 $110,722,311
$2,069,025 Notes receivable from participants -
Various notes; due January 1, 1998
to May 9, 2030; interest rates
of 6.75% to 10.5% 2,069,025 2,069,025
-----------------------------
$30,190,777 $112,791,336
=============================
*Represents a party-in-interest to the Plan.
<PAGE>
First Financial Corporation
401(k) Profit-Sharing Plan and Trust
Employer Identification Number 39-1044853
Plan Number 001
Line 27(d) - Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
Fair
Value of Net
Type of Transfer-in Purchase Selling Cost of Asset on Gain
Transaction from ESOP Price Price Asset Transaction Date (Loss)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Marshall Money Market Fund iii $ - $24,965,009 $30,514,66 $30,514,661 $30,514,661 $ -
Marshall Mid-Cap Stock Fund iii - 8,517,292 9,209,254 8,673,973 9,209,254 535,281
Marshall Equity Income Fund iii - 8,795,133 9,801,014 8,928,928 9,801,014 872,086
Employer NOW Account* iii - 4,175,835 4,175,835 4,175,835 4,175,835 -
Employer Certificates of Deposit* iv - 23,853,295 25,776,053 25,776,101 25,776,053 (48)
Employer Common Stock* iii 7,346,169 2,161,865 15,646,901 4,612,860 15,646,901 11,034,041
</TABLE>
As defined by ERISA, transactions in excess of 5 percent of the current value of
plan assets are categorized as:
(i) - a single transaction
(ii) - a series of transactions (other than securities)
(iii) - a series of transactions involving securities of
the same issue
(iv) - a series of transactions involving securities with
the same person
There were no Type i or Type ii transactions during the plan year.
* Represents a party-in-interest to the Plan.
