Commercial lending fuels growth for Associated Bank

Associated Banc-Corp reported second quarter net income of $47 million, or 28 cents per share, up from $42 million, or 24 cents per share, for the same quarter a year ago.

The company’s average loans of $15.7 billion increased by $280 million, or 2 percent from the first quarter and increased $1.1 billion, or 8 percent, from the year ago quarter. Commercial and business lending average balances increased by $245 million, or 4 percent from the prior quarter.

The company’s commercial real estate lending average balances grew by $130 million, or 4 percent on a linked-quarter basis. The residential mortgage portfolio average balances grew by $39 million, or 1 percent, during the quarter.

The growth was partially offset by continued run off in home equity and installment loan balances, which experienced an average balance decline of $135 million, or 5 percent, during the quarter.

“We are pleased to report another quarter of solid results and continue to look for opportunities to deliver value for our shareholders,” said Associated president and chief executive officer Philip Flynn. “Our mortgage banking business had a record quarter and we are encouraged by momentum being created in our other lines of business. We remain focused on strengthening our franchise and deploying our capital in a disciplined manner, consistent with our commitment to building long-term shareholder value at Associated.”

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