Why Associated Banc-Corp. Stock Dropped Today
Shares of Associated Banc-Corp (NYSE: ASB) fell as much as 8% early Friday, then tempered its losses to trade down 3.4% as of 2:30 p.m. ET after the regional bank announced mixed quarterly results relative to Wall Street's expectations.
For its fiscal second quarter ended Sept. 30, Associated's revenue declined 4.2% year over year, to $320.8 million, missing analysts' consensus models for revenue closer to $325 million. On the bottom line, that translated to generally accepted accounting principles (GAAP) earnings of $80.4 million, or $0.53 per share, slightly beating estimates calling for earnings of $0.52 per share.
Associated CEO Andy Harmening lauded improvements in customer acquisition, retention, and satisfaction scores, which helped increase core customer deposits by over $500 million while lowering reliance on noncustomer funding sources. He added, "While we fell well-positioned today, we recognize that the banking environment continues to evolve, and we look forward to sharing more details about the second phase of our strategic plan later this quarter."
Source Fool.com
