Associated Banc-Corp Sinks On CEO Retirement News

NEW YORK (AP) — Shares of Associated Banc-Corp slid Thursday a day after the regional bank announced its CEO's retirement without naming a successor.

The company said Wednesday Paul S. Beideman would remain as CEO until his replacement is named. He will stay at the company until February 2010 to help in the transition, Associated Banc-Corp said.

The development came amid growing loan losses and stagnating revenue growth for Associated, analysts said. It is the second major executive departure announced since May, when the company's president and chief operating officer Lisa Binder retired.

Associated Banc-Corp is "likely seeking to quickly replenish management depth by recruiting a new team," wrote R.W. Baird analyst David George in a note to investors Thursday.

But Beideman's departure is a "modest negative," he said, as the leadership transition is going to be another challenge for a company already dealing with souring construction and real estate loans.

Associated Banc-Corp, which operates banks in Wisconsin, Illinois and Minnesota, reported a second-quarter loss in July as it increased its loan loss provision and recorded a one-time assessment paid to the Federal Deposit Insurance Corp.

Meanwhile, loan growth is going to remain weak, George said. He lowered his price target on the stock by $3 to $12.

Shares of Associated Banc-Corp dropped 60 cents, or 6 percent, to $10.13 in afternoon trading. They have changed hands between $8.92 and $31.99 in the past 12 months.