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Associated Banc-Corp (NASDAQ:ASBC) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
The Reserve Build
Scott Siefers – Sandler O’Neill: My first question was just on the reserve build for mortgage repurchased issues. So, I guess that could be one or two things, just sort of general, elevated levels or repurchase requests or then newer things, that a lot of the big banks learned about I should say, back in December was the increased look back period from ’04 to ’06. What dynamics were at play in the need to build that up?
Philip B. Flynn – President and CEO: Yeah. It’s not an increased look back period. So, what we’ve seen is we’ve seen very moderated and practically immaterial volume in this area in 2009 and ’10. We saw modest amounts of increase, that were still relatively material ’11 and into the first part of ’12 and we saw increasing volumes on requests coming through in 2012, and so we thought it was prudent and appropriate given the new OCC guidance that was out there and what we saw others doing to establish a reasonable and prudent reserve. The bulk of the activity was related to ’06, ’07, ’08 loans lending and we think it’s a reserve that’s in line with peer levels and appropriate for the level of our foreclosure activity.
Scott Siefers – Sandler O’Neill: Then does that kind of cover you for both Fannie and Freddie or just one of them?
Philip B. Flynn – President and CEO: Yes. No. It’s for all the agency activity.
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