Associated Banc-Corp in Green Bay, Wis., will report a net loss in the fourth quarter after repositioning its securities portfolio for a second time.
The $42.2 billion-asset company, which raised capital last month, said in a press release that it sold about $1.3 billion of investment securities and that it agreed to sell about $700 million of mortgage loans. The loan sale is expected to close in the first quarter.
Associated will use some of the proceeds to pay down FHLB advances and reinvest $1.5 billion into investment securities.
Associated said the moves will result in an after-tax loss of about $253 million, which will lead to a quarterly loss.
Associated also had a big fourth-quarter loss last year that partially reflected a decision to sell $800 million of securities.
“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,” Andy Harmening, Associated’s president and CEO, said in the release.
“This balance sheet repositioning supports and accelerates our organic strategy by enhancing our earnings profile, boosting capital and providing additional capacity for loan growth,” he added. “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.”