Green Bay-based Associated Banc-Corp reported higher profits in the third quarter, helped along by loan and deposit growth.
The company, which operates more than 200 Associated Bank branches in the Midwest, recorded third-quarter net income of $53.8 million, or 34 cents per share, up 9 percent from $49.4 million, or 31 cents per share, in the third quarter of 2015.
Associated Banc-Corp’s net interest income was $178.5 million in the third quarter, up from $170.5 million in the same period a year ago. Noninterest income was $95.2 million, up from $80.1 million in the third quarter of 2015.
The company’s interest expense increased by 8 percent year-over-year, to $21 million. Its noninterest expense increased 2 percent, to $175.3 million.
Growth in both loans and deposits contributed to Associated Banc-Corp’s results, the company said. Average loans were up 9 percent from the third quarter of 2015, to $20.1 billion, driven by a 10 percent increase in commercial lending year-over-year. Average deposits were $21.4 billion, up 5 percent from the third quarter of 2015.
“In the third quarter, we reached record deposit levels,” said Philip Flynn, president and chief executive officer of Associated Bank. “We saw significant seasonal deposit inflows and we are particularly pleased with double-digit year over year growth in demand deposits. Average loans continued to grow and we remain on track to meet our 2016 loan guidance. Mortgage banking activity and record capital markets revenues drove noninterest income higher in the third quarter, which more than offset seasonally lower insurance commissions and additional loan loss provisions.”
As of the end of the third quarter, Associated Banc-Corp had $29.2 billion in total assets, up from $27.5 billion at the same time a year ago.