GREEN BAY, Wis.,
Dec. 4,
2024 /PRNewswire/ -- Associated Banc-Corp (NYSE:
ASB) today announced balance sheet repositioning transactions to
accelerate the Company's organic growth strategy. Pursuant to the
terms of the transactions, Associated sold approximately
$1.3 billion of investment securities
and has agreed to sell approximately $0.7
billion in mortgage loans, primarily in single-product
relationships. The sale of the mortgage loans is expected to close
in the first quarter of 2025.
"We are now three years into an organic growth strategy that has
provided tailwinds across our company, including improved customer
satisfaction, net household growth, and an infusion of talent in
key areas," said President and CEO Andy
Harmening. "This balance sheet repositioning supports and
accelerates our organic strategy by enhancing our earnings profile,
boosting capital, and providing additional capacity for loan
growth. As we continue to execute on our plan going forward, we
feel well-positioned to attract and deepen customer relationships,
take market share in key commercial markets, and enhance the value
of our franchise. We look forward to sharing updates on our
progress along the way."
The transactions are expected to result in an after-tax loss of
approximately $253 million which will
cause the Company to report a net loss for the fourth quarter of
2024.
The transactions are expected to increase Associated's wholesale
funding capacity by paying down FHLB advances, while also removing
low-yielding assets from the books. The Company has also chosen to
reinvest approximately $1.5 billion
into investment securities.
The Company expects to provide additional details on this
balance sheet repositioning in a conference call for investors and
analysts at 4:30 p.m. Central Time
(CT) today, December 4, 2024.
Interested parties can access the live webcast of the call through
the Investor Relations section of the Company's website,
http://investor.associatedbank.com. Parties may also dial into the
call at 877-407-8037 (domestic) or 201-689-8037 (international) and
request the Associated Banc-Corp strategic update call. An
accompanying slide presentation will be available on the Company's
website just prior to the call. An audio archive of the webcast
will be available on the Company's website approximately fifteen
minutes after the call is over.
An investor presentation will be furnished as an exhibit to a
Form 8-K with the Securities and Exchange Commission and will be
accessible via Associated Banc-Corp's Investor Relations website
at http://investor.associatedbank.com.
ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of
$42 billion and is the largest bank
holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading
Midwest banking franchise, offering a full range of financial
products and services from nearly 200 banking locations serving
more than 100 communities throughout Wisconsin, Illinois and Minnesota. The Company also operates loan
production offices in Indiana,
Michigan, Missouri, New
York, Ohio and Texas. Associated Bank, N.A. is an Equal
Housing Lender, Equal Opportunity Lender and Member FDIC. More
information about Associated Banc-Corp is available at
www.associatedbank.com.
FORWARD-LOOKING STATEMENTS
Statements made in this presentation which are not purely
historical are forward-looking statements, as defined in the
Private Securities Litigation Reform Act of 1995. This includes any
statements regarding management's plans, objectives, or goals for
future operations, products or services, and forecasts of its
revenues, earnings, or other measures of performance. Such
forward-looking statements may be identified by the use of words
such as "believe," "expect," "anticipate," "plan," "estimate,"
"should," "intend," "target," "outlook," "project," "guidance,"
"forecast," or similar expressions. Forward-looking statements are
based on current management expectations and, by their nature, are
subject to risks and uncertainties. Actual results may differ
materially from those contained in the forward-looking statements.
Factors which may cause actual results to differ materially from
those contained in such forward-looking statements include those
identified in the Company's most recent Form 10-K and subsequent
Form 10-Qs and other SEC filings, and such factors are incorporated
herein by reference.
NON-GAAP FINANCIAL MEASURES
This press release and related materials may contain references
to measures which are not defined in generally accepted accounting
principles ("GAAP"). Information concerning these non-GAAP
financial measures can be found in the financial tables. Management
believes these measures are meaningful because they reflect
adjustments commonly made by management, investors, regulators, and
analysts to evaluate the adequacy of earnings per common share,
provide a greater understanding of ongoing operations and enhance
comparability of results with prior periods.
Media Contact: Andrea
Kozek
Senior Manager, Public Relations
920-491-7518
Investor Contact: Ben McCarville
Vice
President | Director of Investor Relations
920-491-7059
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SOURCE Associated Banc-Corp