Green Bay-based Associated Banc-Corp reported fourth quarter net income of $42.8 million, or 27 cents per diluted share, down from $48.7 million, or 31 cents per share, in the fourth quarter of 2014.
The company, which operates more than 200 Associated Bank branches in Wisconsin, Illinois and Minnesota, experienced the 12.2 percent decrease as a result of the volatility in the oil and gas industry. It increased its potential problem loans to $302 million, up considerably from $190 million in the fourth quarter of 2014, due to its oil and gas exposure, and increased its credit loss provision by $12 million year-over-year for the same reason.
Total interest income was $191.4 million in the fourth quarter, up from $191 million in the fourth quarter of 2014. Total noninterest income was $81.9 million, up from $69.6 million in the same period a year ago. However, total noninterest expense increased from $171.8 million in the fourth quarter of 2014 to $174.9 million in the fourth quarter of 2015.
At the end of the fourth quarter, Associated Banc-Corp had $27.7 billion in total assets, up from $26.8 billion in the fourth quarter of 2014. Net loans were $18.4 billion, up from $17.3 billion in the same period a year ago.
The bank recorded full-year net income of $188.3 million, or $1.19 per diluted common share, down from $190.5 million, or $1.16 per share, in 2014.
Average loans increased by $1.4 billion, or 8 percent, compared to 2014, driven by commercial lending growth. Average deposits were up $2.3 billion, or 13 percent, versus last year.
“In 2015, we reached record levels of loans and deposits,” said Philip Flynn, president and chief executive officer of Associated Banc-Corp. “We are particularly pleased by our year-over-year deposit growth in a competitive environment and transforming industry. In addition, our successful insurance business acquisition drove year-over-year fee income growth of 13 percent. We achieved these results with essentially flat expenses, when you adjust for the acquisition. Over the past five years, we have rebuilt and diversified our loan portfolio. We grew several specialized commercial lending businesses, including an oil and gas business focused entirely on reserve secured lending. Despite the recent energy price volatility, we remain committed to the energy business and we will continue to proactively manage the risk of our portfolio throughout this current cycle. As we enter 2016, we remain focused on enhancing our customer solutions and driving shareholder value.”
