Associated Banc-Corp Repositions Balance Sheet, to Incur a Loss in Q4

Zacks12-05

Associated Banc-Corp ASB has announced balance sheet repositioning transactions to support its organic growth strategy. While the transactions will result in a net loss in fourth-quarter 2024 for the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2489465492?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/T6anljCTX0H0pDW80tjEJw--~B/aD01NDM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/e1d75fdc118c1ce7ad8470112aa5e4fa","is_english":true,"pubTime":"2024-12-05 22:12","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2489465492","market":"us","top_or_hot":-1,"title":"Associated Banc-Corp Repositions Balance Sheet, to Incur a Loss in Q4","media":"Zacks","content":"<div>\n<p>Associated Banc-Corp ASB has announced balance sheet repositioning transactions to support its organic growth strategy. While the transactions will result in a net loss in fourth-quarter 2024 for the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/associated-banc-corp-repositions-balance-141200477.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Associated Banc-Corp Repositions Balance Sheet, to Incur a Loss in Q4</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssociated Banc-Corp Repositions Balance Sheet, to Incur a Loss in Q4\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-05 22:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/associated-banc-corp-repositions-balance-141200477.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Associated Banc-Corp ASB has announced balance sheet repositioning transactions to support its organic growth strategy. While the transactions will result in a net loss in fourth-quarter 2024 for the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/associated-banc-corp-repositions-balance-141200477.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ASB","symbol_name":"Associated Banc-Corp","start_time":0,"source_url":"https://finance.yahoo.com/news/associated-banc-corp-repositions-balance-141200477.html","article_id":"2489465492","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/T6anljCTX0H0pDW80tjEJw--~B/aD01NDM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/e1d75fdc118c1ce7ad8470112aa5e4fa"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489465492","pubTimestamp":1733407920,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Details & Impact of ASB’s Balance Sheet Repositioning. As part of the balance sheet repositioning strategy, Associated Banc-Corp sold approximately $1.3 billion of investment securities  and intends to sell $0.7 billion of low-yielding mortgage loans, primarily from single-product relationships. The sale of mortgage loans is expected to close in the first quarter of 2025.The balance sheet repositioning transactions are expected to result in a post-tax loss of $253 million.ASB reinvested the proceeds from the sale of investment securities in almost $1.5 billion of higher-yielding securities. These securities will yield 5.08% on average.Further, the repositioning will likely increase Associated Banc-Corp’s wholesale funding capacity by paying down FHLB advances and removing low-yielding assets from the books.On a proforma basis, the repositioning is expected to add roughly $15.8 million to the third quarter 2024 net interest income and 19 basis points to the net interest margin. Further,","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ASB":"Associated Banc-Corp","CIVB":"Civista Bancshares, Inc. ","BK4211":"区域性银行","MOFG":"MidWestOne Financial Group"},"translate_title":"Associated Banc-Corp重新定位资产负债表，第四季度出现亏损","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ASB":1,"CIVB":1,"MOFG":1},"content_text":"Associated Banc-Corp ASB has announced balance sheet repositioning transactions to support its organic growth strategy. While the transactions will result in a net loss in fourth-quarter 2024 for the company, the strategy is focused on long-term growth and profitability. President and CEO Andy Harmening said, “This balance sheet repositioning supports and accelerates our organic strategy by enhancing our earnings profile, boosting capital, and providing additional capacity for loan growth.”\nDetails & Impact of ASB’s Balance Sheet Repositioning\nAs part of the balance sheet repositioning strategy, Associated Banc-Corp sold approximately $1.3 billion of investment securities (yielded 1.87% on average) and intends to sell $0.7 billion of low-yielding mortgage loans, primarily from single-product relationships. The sale of mortgage loans is expected to close in the first quarter of 2025.The balance sheet repositioning transactions are expected to result in a post-tax loss of $253 million. ASB reinvested the proceeds from the sale of investment securities in almost $1.5 billion of higher-yielding securities. These securities will yield 5.08% on average.Further, the repositioning will likely increase Associated Banc-Corp’s wholesale funding capacity by paying down FHLB advances and removing low-yielding assets from the books.On a proforma basis, the repositioning is expected to add roughly $15.8 million to the third quarter 2024 net interest income and 19 basis points to the net interest margin. Further, it will enhance ASB’s earnings, boost capital and provide capacity for growth. Apart from these, the sale of mortgage loans will lower residential mortgage loans as a percentage of total loans. \nImage Source: Associated Banc-Corp\nOur Take on ASB’s Balance Sheet Repositioning Strategy\nThe balance sheet repositioning underscores Associated Banc-Corp’s commitment to long-term growth and profitability. While the immediate financial impact is a cause of concern, the company’s strategic vision – optimizing its asset mix, boosting capital and seizing growth opportunities – positions it well for success.Shares of ASB have gained 22.8% in the past three months, outperforming the industry’s rally of 20.8%. \nImage Source: Zacks Investment Research\nAt present, Associated Banc-Corp carries a Zacks Rank of 3 (Hold).\nASB’s Peers Worth a Look\nSome better-ranked peers of ASB are Civista Bancshares CIVB and MidWestOne Financial Group MOFG, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.Estimates for CIVB’s current-year earnings have been revised 9.1% upward in the past 60 days. The company’s shares have gained 38.1% in the past three months.Estimates for MOFG’s current-year earnings have been revised 4.1% north in the past two months. The company’s shares have jumped 19.6% in the past three months.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nMidWestOne Financial Group, Inc. (MOFG) : Free Stock Analysis Report\nAssociated Banc-Corp (ASB) : Free Stock Analysis Report\nCivista Bancshares, Inc. (CIVB) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489465492"}