ASHWAUBENON — Associated Bancorp, parent company of Associated Bank, has entered into a memorandum of understanding with the Comptroller of the Currency, its chief federal regulator, to ensure that it has enough capital to cover its loan risks.

The memorandum is described as an informal agreement that requires the bank to develop, implement and maintain processes to improve the bank's risk management of its loan portfolio, and to develop a three-year capital plan to maintain capital ratios at higher-than-normal levels.

Associated said the agreement does not require it to raise capital or restrict business activities.

Associated agreed to maintain a capital-to-total asset ratio of 8 percent or higher and a total capital-to-risk-weighted assets ratio of 12 percent or higher. As of Sept. 30, Associated reported ratios of 8.33 percent and 13.11 percent, respectively.

Associated Bancorp, headquartered in Ashwaubenon, has $23 billion in assets and 300 offices in Wisconsin, Illinois and Minnesota.

— Richard Ryman/Press-Gazette