The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Associated in Wisconsin to raise capital by selling common stock

Associated Banc-Corp in Green Bay, Wis., is raising up to $345 million that could be used to fine-tune its balance sheet.

The $42.2 billion-asset company said it could sell up to 13.8 million shares of common stock if there is sufficient demand. Shares were priced at $25 each.

Associated said that proceeds would used to support organic growth, including potential balance-sheet optimization strategies.

“On the surface, Associated is making good use of its stronger post-election share price to bolster its capital position,” Scott Siefers, an analyst at Piper Sandler, said in a research note.

“What Associated will do with the proceeds is more of a question mark,” Siefers added. “We had not really considered Associated a candidate for a balance sheet restructuring, considering that it just did a sizeable one late last year. … Supporting the company’s organic growth efforts makes sense to us, though.”

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