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Associated Banc-Corp (ASBC) Sees Larger Q2 Loss

June 29, 2009 4:58 PM EDT
ASBC Hot Sheet
EPS Growth %: +166.7%

Financial Fact:
Realized gains (losses), net: 40K

Today's EPS Names:
BRLI, TLB, TNP, More
Associated Banc-Corp (NASDAQ: ASBC) announced updated credit quality guidance for Q2 of 2009. The company expects to record a provision for loan losses between $145.0-$160.0 million for Q2, which may result in a loss for the quarter.

Q2 net charge-offs are expected to be between $60.0 million and $70.0 million. After taking into consideration this increased provision, capital levels will exceed all well capitalized standards at June 30, 2009.

"This higher than anticipated provision results from asset quality downgrades to existing construction, commercial real estate and C&I credits, which are a result of weakness in the economy and further deterioration in collateral values," said Associated Chairman and Chief Executive Officer Paul S. Beideman. "We believe loan loss provisions and charge-offs will remain elevated due to the continued deterioration in the real estate sector and the weak economy. We expect the pace of loan and asset deterioration to moderate in future quarters."

As previously announced, Associated Banc-Corp will release second quarter results on Thursday, July 16, 2009. [SM]

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