MILWAUKEE (AP) — Associated Banc-Corp, the parent company of Associated Bank, said it has sold $525 million in preferred stock to the U.S. Treasury.

The sale is part of a federal program to enhance capital levels at strong banks and spur lending to help ease the national financial crisis.
Like other banks in the program, Green Bay-based Associated Bank will pay the Treasury a 5 percent dividend for the first five years and 9 percent after that.

The Treasury also has the right to buy almost 4 million shares of Associated common stock for $19.77 per share in the future.

Associated is the second-largest bank based in Wisconsin.

Wisconsin's largest bank, Milwaukee-based Marshall & Ilsley Corp., sold more than $1.7 billion in preferred shares to the Treasury earlier this month.

Advertisement