Associated Banc-Corp announces balance sheet repositioning to support organic growth strategy
Rhea-AI Summary
Associated Banc-Corp (NYSE: ASB) has announced strategic balance sheet repositioning transactions to accelerate organic growth. The company has sold $1.3 billion of investment securities and plans to sell $0.7 billion in mortgage loans in Q1 2025. The transactions are expected to result in an after-tax loss of approximately $253 million, leading to a net loss in Q4 2024.
The company plans to reinvest $1.5 billion into investment securities and increase wholesale funding capacity by paying down FHLB advances. CEO Andy Harmening stated this repositioning supports their organic strategy by enhancing earnings profile, boosting capital, and providing additional loan growth capacity.
Positive
- Strategic repositioning to enhance earnings profile and boost capital
- Increased wholesale funding capacity through FHLB advances reduction
- Additional capacity for loan growth created
- Removal of low-yielding assets from books
Negative
- Expected after-tax loss of $253 million in Q4 2024
- Sale of $1.3 billion in investment securities
- Planned divestment of $0.7 billion in mortgage loans
News Market Reaction
On the day this news was published, ASB declined 0.19%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
"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
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
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
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
FAQ
What is the expected financial impact of ASB's balance sheet repositioning in Q4 2024?
How much in assets is ASB selling as part of its repositioning strategy?
When will ASB complete the mortgage loan sale announced in December 2024?
How much is ASB planning to reinvest in investment securities?
