The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Associated to report big 4Q loss after restructuring

Associated Banc-Corp in Green Bay, Wis., will report a large fourth-quarter loss after restructuring its balance sheet and pursuing a series of expense cuts.

The $42 billion-asset company said in a press release that it will record a $157 million after-tax loss in the fourth quarter. The bank will pay a one-time charge of $5 million largely tied to severance payments.

Associated laid off about 3% of its work force and will close 14 branches and cut discretionary spending. It also sold roughly $800 million of securities and will sell about $1 billion of mortgages by year-end.

The company also said it will hire 20 relationship managers to boost lending and deposit-gathering efforts. 

The changes should keep noninterest expense growth between 3% to 4% this year and in 2024.

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