Associated Bank enters memorandum of understanding

Associated Bank, N.A. entered into an informal agreement called a memorandum of understanding with the Comptroller of the Currency, its primary banking regulator, on Nov. 5.

According to Associated Bank spokesperson Janet Ford, the MOU does not require Associated Bank to raise capital and the MOU does not restrict the bank’s business activities or customer relationships.

The agreement requires the bank to improve risk management of its loan portfolio and generate a plan to maintain or improve its current capital levels.

Ford assured customers that the bank remains strong and that many of the requirements of the MOU have already been met.

The strongest measure of a bank’s stability is its capital levels, Ford indicated. Associated exceeds the OCC requirements and regulatory standards for “well capitalized” banks signifying a strong and stable organization.

At Sept. 30, the bank’s “Tier 1” capital to total average assets (leverage ratio) was 8.33 percent (more than the 8 percent level required by the MOU) and the total capital to risk-weighted assets ratio was 13.11 percent.

These levels are above those required under the MOU and well above those otherwise required by applicable regulations, Ford said.

Third quarter results exceeded analysts’ expectations. Associated Banc-Corp was profitable with net income of $8.7 million for the third quarter which ended Sept. 30.

Associated Banc-Corp, headquartered in Green Bay, is a diversified bank holding company with total assets of $23 billion. Associated has approximately 300 banking offices serving an estimated 160 communities in Wisconsin, Minnesota and Illinois.

Area branches include Hudson, Hammond, Baldwin and River Falls.

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