Green Bay-based Associated Banc-Corp reported net income of $47.4 million, or 37 cents per share, for the second quarter of 2008, down from $75.8 million, or 59 cents per share, for the second quarter of 2007 and down from net income of $66.5 million, or 52 cents per share, for the first quarter of 2008. For the first half of the year net income was $113.8 million, or 89 cents per share, down from net income of $149.2 million, or $1.16 per share for the first half of 2007.
The company said that its provision for loan losses increased to $59 million during the second quarter, up from $23 million during the first quarter. Net charge offs were $37 million for the second quarter, compared to $16 million for the first quarter.
Six housing-related commercial credits accounted for $21 million of the quarter’s $37 million in net charge offs. Nonperforming loans increased $81 million during the second quarter to $289 million, attributable primarily to the six commercial credits related to the housing industry, the company said.
"The increase in allowance for loan losses was principally due to deterioration of collateral values in a number of commercial real estate and other commercial credits related to and affected by the downturn of the housing industry," said Associated Bank chairman and CEO Paul S. Beideman. "For the remainder of 2008, we expect nonperforming loans to stabilize at the quarter end levels and net charge offs to continue at levels experienced in the second quarter."
