Associated Banc-Corp announces balance sheet repositioning to support organic growth strategy
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.
Associated Banc-Corp (NYSE: ASB) ha annunciato transazioni strategiche per il riequilibrio del bilancio al fine di accelerare la crescita organica. L'azienda ha venduto 1,3 miliardi di dollari di titoli di investimento e prevede di vendere 0,7 miliardi di dollari in prestiti ipotecari nel primo trimestre del 2025. Si prevede che queste operazioni comportino una perdita dopo le tasse di circa 253 milioni di dollari, portando a una perdita netta nel quarto trimestre del 2024.
L'azienda ha intenzione di reinvestire 1,5 miliardi di dollari in titoli di investimento e aumentare la capacità di finanziamento all'ingrosso riducendo le anticipazioni FHLB. Il CEO Andy Harmening ha dichiarato che questo riequilibrio sostiene la loro strategia organica migliorando il profilo degli utili, aumentando il capitale e fornendo ulteriore capacità di crescita dei prestiti.
Associated Banc-Corp (NYSE: ASB) ha anunciado transacciones estratégicas para el reposicionamiento del balance con el fin de acelerar el crecimiento orgánico. La compañía ha vendido 1.3 mil millones de dólares en valores de inversión y planea vender 0.7 mil millones de dólares en préstamos hipotecarios en el primer trimestre de 2025. Se espera que estas transacciones resulten en una pérdida después de impuestos de aproximadamente 253 millones de dólares, lo que llevará a una pérdida neta en el cuarto trimestre de 2024.
La compañía planea reinvertir 1.5 mil millones de dólares en valores de inversión y aumentar la capacidad de financiación al por mayor pagando anticipos FHLB. El CEO Andy Harmening declaró que este reposicionamiento apoya su estrategia orgánica al mejorar el perfil de ganancias, aumentar el capital y proporcionar capacidad adicional para el crecimiento de préstamos.
Associated Banc-Corp (NYSE: ASB)는 유기적 성장을 가속화하기 위해 전략적 재무제표 재편성 거래를 발표했습니다. 회사는 13억 달러의 투자 증권을 매각했으며, 2025년 1분기에 7억 달러의 모기지 대출을 매각할 계획입니다. 이 거래는 세후 약 2억 5300만 달러의 손실을 초래할 것으로 예상되며, 2024년 4분기에 순손실로 이어질 것입니다.
회사는 15억 달러를 투자 증권에 재투자하고, FHLB 대출 상환을 통해 도매 자금 조달 용량을 증가시킬 계획입니다. CEO Andy Harmening은 이 재편성이 수익 프로필을 향상시키고, 자본을 증가시키며, 추가적인 대출 성장 가능성을 제공함으로써 그들의 유기적 전략을 지원한다고 밝혔습니다.
Associated Banc-Corp (NYSE: ASB) a annoncé des transactions stratégiques de repositionnement de son bilan pour accélérer la croissance organique. La société a vendu 1,3 milliard de dollars de titres d'investissement et prévoit de vendre 0,7 milliard de dollars en prêts hypothécaires au premier trimestre de 2025. Ces transactions devraient entraîner une perte après impôts d'environ 253 millions de dollars, ce qui conduira à une perte nette au quatrième trimestre de 2024.
La société prévoit de réinvestir 1,5 milliard de dollars dans des titres d'investissement et d'augmenter sa capacité de financement de gros en remboursant les avances FHLB. Le PDG Andy Harmening a déclaré que ce repositionnement soutient leur stratégie organique en améliorant le profil de rentabilité, en renforçant le capital et en offrant une capacité de croissance supplémentaire pour les prêts.
Associated Banc-Corp (NYSE: ASB) hat strategische Transaktionen zur Neugestaltung der Bilanz angekündigt, um organisches Wachstum zu beschleunigen. Das Unternehmen hat 1,3 Milliarden Dollar an Investitionswertpapieren verkauft und plant, im 1. Quartal 2025 0,7 Milliarden Dollar an Hypothekendarlehen zu verkaufen. Die Transaktionen werden voraussichtlich zu einem nach Steuern von etwa 253 Millionen Dollar führen, was zu einem Nett Verlust im 4. Quartal 2024 führen wird.
Das Unternehmen plant, 1,5 Milliarden Dollar in Investitionswertpapiere reinvestieren und die Großhandelsfinanzierungskapazität durch Rückzahlung von FHLB-Darlehen zu erhöhen. CEO Andy Harmening erklärte, dass diese Neugestaltung ihre organische Strategie unterstützt, indem sie das Ertragsprofil verbessert, das Kapital erhöht und zusätzliche Wachstumschancen bei Darlehen bietet.
- 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
- 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
Insights
This significant balance sheet restructuring represents a strategic pivot for Associated Banc-Corp, with both immediate and long-term implications. The sale of
The expected after-tax loss of
The strategy aligns with the current high-rate environment, allowing ASB to redeploy capital into potentially higher-yielding assets and support its organic growth initiatives. However, the immediate earnings impact and capital position will require careful monitoring by investors, particularly regarding the execution of the reinvestment strategy and its ability to generate the anticipated returns.
The restructuring comes at a critical time in the banking sector, as institutions navigate the challenges of high interest rates and shifting market dynamics. The decision to exit
Key positive indicators include reported improvements in customer satisfaction and net household growth. However, the timing of the mortgage loan sales, scheduled for Q1 2025, introduces some execution risk. The market's reaction will likely focus on the bank's ability to deploy the freed-up capital effectively and achieve the promised organic growth targets.
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?
