Associated Banc-Corp (NYSE: ASB) has announced significant balance sheet repositioning transactions to support its organic growth strategy. The company sold approximately $1.3 billion of investment securities and has agreed to sell around $0.7 billion in mortgage loans, primarily in single-product relationships. These actions are expected to accelerate the company's organic growth strategy and enhance its earnings profile, capital, and capacity for loan growth.
As a result of these transactions, Associated Banc-Corp anticipates an after-tax loss of approximately $253 million, leading to a net loss for the fourth quarter of 2024. However, the moves are also projected to increase the company's wholesale funding capacity by paying down FHLB advances, while also removing low-yielding assets from its books. Additionally, the company has chosen to reinvest approximately $1.5 billion into investment securities.
Associated Banc-Corp has a total asset value of $42 billion and is the largest bank holding company based in Wisconsin, serving more than 100 communities throughout Wisconsin, Illinois, and Minnesota. The company also operates loan production offices in several other states.
The company is expected to provide additional details on the balance sheet repositioning in a conference call for investors and analysts. Interested parties can access the live webcast of the call through the investor relations section of the company's website. An investor presentation will also 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.
The market has reacted to these announcements by moving the company's shares 0.6% to a price of $26.11. For more information, read the company's full 8-K submission here.
