Associated Banc-Corp today reported a first-quarter net loss to common shareholders of $33.8 million, or 20 cents per common share, compared with net income of $35.4 million, or 28 cents per share, for the same period a year ago.
The Green Bay-based parent company of Associated Bank said its total nonperforming loans increased $88.1 million during the quarter to $1.2 billion, with commercial real estate and construction-related nonperforming loans increasing $123.6 million to $844.4 million.
Potential problem loans declined $227.8 million during the quarter to $1.4 billion, with potential problem loans in the commercial real estate and construction segments of the company's loan portfolio declining $160.7 million to $828.5 million.
As of March 31, the company's Tier 1 capital-to-total-average-assets ratio was 10.57 percent, and total capital-to-risk-weighted-assets ratio was 18.15 percent, which "far exceed" the criteria for "well capitalized" banks and requirements by banking regulators, the company said.
On Jan. 15, the company completed a $500 million common equity offering, resulting in a net increase in the company's equity capital of approximately $478 million and a 44.8 million increase in the number of common shares outstanding.
"Our successful capital raise during the quarter positions our company well and provides us with additional flexibility as we manage through this credit cycle and focus on our strategic priorities," said Philip Flynn, president and chief executive officer of Associated, which is Wisconsin's second-largest bank. "As anticipated, first quarter results were impacted by our continuing efforts to address our credit challenges, particularly in the construction and commercial real estate segments of our loan portfolio."
Associated Bank reports quarterly loss of $33.8 million
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