Green Bay-based Associated Banc-Corp today reported a 9 percent drop in its first quarter profit due to oil and gas industry exposure.
The company, which operates more than 200 Associated Bank branches in Wisconsin, Illinois and Minnesota, reported first quarter net income of $42.5 million, or 27 cents per diluted share, down 9 percent from $46.7 million, or 30 cents per diluted share, in the first quarter of 2015.
Provision for credit losses was $20 million, up from $4 million in the first quarter of 2015, driven by oil and gas credits.
Net interest income was $172 million in the first quarter, up from $167.8 million in the same period a year ago. Non-interest income was $83.2 million, up from $80 million in the first quarter of 2015.
Associated reported $28.2 billion in total assets at the end of the first quarter, up from $27.1 billion in the first quarter of 2015. It had $20.7 billion in total deposits, up from $20 billion in the same period last year.
The bank had $19 billion in net loans in the first quarter, up from $17.7 billion in the first quarter of 2015. The company set aside $277.4 million for loan losses, up from $265.3 million in the same period last year.
“We continue to be expense disciplined as we manage through the current low interest rate environment and the energy price cycle,” said Philip Flynn, president and chief executive officer. “While pressures in the oil and gas portfolio contributed to an elevated provision overall, the quarter benefited from higher revenues, lower expenses and solid underlying trends.”
Flynn said he was “encouraged” by other factors, including strong commercial loan growth and improving commercial lending rates.
