Green Bay-based Associated Banc-Corp, the parent company of Associated Bank, reported lower profits in the second quarter, which it attributed to a challenging economic environment.
Second quarter net income was $49.1 million, or 31 cents per share, down 1 percent from $49.4 million, or 31 cents per share, in the second quarter of 2015.
Total interest income was $196.5 million, up from $185.6 million in the same period last year. Noninterest income was $82.2 million, down from $86.5 million in the second quarter of 2015.
The company reported its results as “net income available to common equity,” which was $47 million, and pointed to record loan growth in the quarter.
Average loans totaled $19.6 billion in the second quarter, up from $18.1 billion in the second quarter of 2015. Commercial and business lending was up 4 percent year-over-year, commercial real estate lending was up 12 percent from the second quarter of 2015 and consumer lending was up 9 percent year-over-year.
The banking industry has been dealing with tighter margins as a result of persistently low interest rates for several quarters.
“This quarter’s results demonstrated our ability to grow in a challenging environment,” said Philip Flynn, president and chief executive officer of Associated Banc-Corp. “We benefit from a mix of diverse businesses and are encouraged by the consistent demand across our product offerings. We delivered record loan growth, and together with a stable margin, saw a significant increase in net interest income. We are also pleased to report stronger fee-based revenue, which highlights the resiliency of our fee product offerings. We held expenses in line with prior quarters and we are on target to deliver improved efficiency for the fifth straight year. Outside of energy, our credit quality metrics remain sound and net charge offs were at cyclical lows. Our customers look to Associated as a partner for growth as we continue to enhance our capabilities while delivering value to our shareholders.”
Associated Banc-Corp had $29 billion in total assets at the end of the second quarter, up from $28.2 billion in the same period last year. The company operates more than 200 Associated Bank branches in Wisconsin, Illinois and Minnesota.