Deposit growth was among the highlights of a strong third-quarter at Associated Banc-Corp in Green Bay, Wis., which could deploy the additional funding to fuel its plans for loan growth.
Associated’s deposits grew by 10% in Wisconsin, CEO Philip Flynn said in a press release Thursday.
“We remain committed to delivering year-over-year mid-single-digit annual average loan growth, an improving net interest margin, and expense growth of less than 1%," Flynn said.
The $30.1 billion-asset company reported third-quarter profits of $62.7 million, up roughly 24% from a year earlier.
Average loans increased 4% to $20.9 billion as the consumer lending portfolio expanded by roughly 13%. Commercial real estate, driven by construction lending, rose by more than 2% to $5 billion. Commercial and business lending declined by more than 3% to $7.3 billion, primarily due to lower mortgage warehouse line utilization and reduced oil and gas outstandings.
Net interest income surged more than 6% to $190.1 million, while the net interest margin climbed 7 basis points to 2.84%. Associated’s provision for credit losses totaled $5 million, down roughly 76%.
Third-quarter noninterest income fell almost 5% to $86 million because of lower mortgage banking activity.
Noninterest expense was $177 million, up 1%, as business development and advertising costs rose due to the company’s fall advertising campaigns.