2012 Will See 21 Associated Bank Branches Close

Sunday, December 25th, 2011

The revenue loss felt by banks as a result of new debit card swipe fee regulations is hurting the bottom line for many lending institutions. Associated Bank, whose primary territory is Wisconsin, Illinois and Minnesota, is responding to such losses by announcing the close of 21 branches come 2012.

Associated Bank has announced that 21 of their branches will be closing down in the early part of 2012 in the three-state area of Illinois, Wisconsin and Minnesota. The majority of locations selected to close are within 2 miles of another Associated branch.

“As part of our strategy, we continuously evaluate our operations to ensure we are investing our resources in a manner that allows us to achieve optimal returns,” said Associated in a press release.

The lender did not indicate how many jobs would be lost as a result of the branch shut downs, but all affected employees have apparently already been notified and, according to Associated’s president and chief executive Philip B. Flynn, “a very significant number” of those employees will have an opportunity to find another job elsewhere within the company.

The Federal Deposit Insurance Corp. released data which showed Associated as having over 4,550 full-time employees as of September 30, 2011.

Associated reported a net gain of $34 million during the third quarter of 2011, which marked its fifth profitable quarter in a row. Throughout the first nine months of the year, Associated had a net income of $75 million.

Despite being profitable, Associated is one of many banks struggling to offset the revenue losses caused by new federal rules that capped debit card interchange fees. It has been estimated that the new law will cost Associated nearly $19 million a year.

Flynn said that the high number of banks currently focusing on cutting back their expenditures is due to the combination of a tougher regulatory environment plus the sluggish economy and low interest rates which makes it very challenging to increase earnings.

“So we’ve got to take a hard look at managing the expenses,” Flynn said, according to The Wisconsin State Journal. “The 21 branches we’ve decided to consolidate are, on average, within two miles of another Associated branch. I think the farthest one is 31/2 miles. One should certainly not draw the conclusion that we are abandoning markets. By no means are we doing that. But we are trying to become more efficient.”

Latest Other Card News

Monday, June 6th, 2016
If your wallet is bulging with store loyalty cards, there’s good news for you from Samsung Pay. The most widely accepted mobile digital wallet system in the United States is now ...
Tuesday, April 12th, 2016
Springtime is the season for house hunting, but many people planning to move this year say they’ll rent, not buy, their new digs.
Tuesday, January 5th, 2016
Online banking has revolutionized the way people do business with their banks, and one result is that fewer and fewer folks are actually stopping in to branches to do things like ...
Tuesday, December 8th, 2015
A new credit card from Barclaycard offers cash back rewards, as well as a redemption bonus when cardmembers redeem their rewards.
Monday, June 29th, 2015
Nordstrom agreed to sell its existing U.S. Visa and private label consumer credit card portfolio to TD Bank Group.
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com.com website are property of their respective owners.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.