Associated Banc-Corp (ASB) AI Stock Analysis

• Market Cap: $4.52B
• Dividend Yield: 3.51%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.17
• Revenue Growth: -1.44%
• EPS Growth: -21.65%
• Country: US
• Employees: 4,006
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 165,975,080
• 10 Day Avg. Volume: 2,140,736
• 30 Day Avg. Volume: 1,972,258
• PEG Ratio: 0.03
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 7.27
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 12.52
• 1Y Price Target: $30.33
• Price Target Upside: 9.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.87
• Revenue Forecast (FY): $1.69B

• Rating: 74 Outperform
• Price Target: $31.00 ▲(12.28% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

ASB scores well on improving financial momentum (notably stronger 2025 profitability and solid cash generation) and supportive valuation (low P/E with a solid dividend). Technicals add a moderate positive bias, while the score is tempered by earnings volatility, recently higher leverage, and execution/yield/expense risks highlighted in the latest earnings call (including acquisition integration uncertainty).

Positive Factors

Record NII and margin expansion

Record NII and full‑year NIM north of 3% reflect durable interest income strength. Higher NII and margin expansion drive repeatable core revenue, support loan growth plans and improve coverage of non‑interest expense, enhancing long‑run profitability if funding remains stable.

Solid cash generation and FCF coverage

Improving operating cash flow and free‑cash‑flow coverage of earnings provide durable internal funding for dividends, buybacks and strategic investments. Reliable cash conversion strengthens capital flexibility and lessens reliance on external funding during business cycles.

Strategic M&A and commercial lending momentum

The American National deal and strong C&I pipeline (>$1.2B added in 2025) materially expand Midwest footprint and relationship lending capacity. A targeted acquisition with an estimated ~2.25 year initial payback supports scalable deposit and C&I growth, strengthening regional market position.

Negative Factors

Rising balance‑sheet leverage

Debt has increased materially in two years, reducing financial flexibility. If earnings or NII weaken, elevated leverage magnifies downside risk to capital ratios and restricts the bank's ability to pursue opportunistic investments, pay dividends, or absorb credit stress without corrective actions.

Historic earnings and margin volatility

Big swings in margins and profitability across recent cycles indicate earnings sensitivity to rates, loan mix and credit. This variability complicates forecasting, makes capital planning harder, and raises the probability that short‑term headwinds could materially compress profits in a downturn.

Acquisition integration and execution risk

The pending merger introduces near‑to‑medium term execution risk: integration costs, systems and personnel alignment, potential deposit/loan repricing actions and regulatory approvals. These factors can raise expenses and disrupt growth targets until integration is fully realized.

Associated Banc-Corp Business Overview & Revenue Model

Company Description

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. Its Corporate and Commercial Specialty segment offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and loan syndications; deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services such as interest rate risk management, foreign exchange solutions, and commodity hedging; fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management; and investable funds solutions such as savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount and online investment brokerage; investment advisory services; and trust and investment management accounts. The company's Community, Consumer, and Business segment offers lending solutions, such as residential mortgages, home equity loans and lines of credit, personal and installment loans, auto loans, business loans, and business lines of credit; and deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. As of December 31, 2021, the company operated 215 banking branches. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

How the Company Makes Money

Associated Banc-Corp generates revenue through several key streams. The primary source is net interest income, which is earned from the interest on loans and investments minus the interest paid on deposits and borrowings. The bank provides a variety of loan products, including commercial loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Additionally, Associated Banc-Corp earns non-interest income from fees associated with services such as wealth management, investment advisory, and transaction services. This includes service charges on deposit accounts, asset management fees, and commissions from investment products. The company also benefits from partnerships with other financial institutions and service providers, which enhance its product offerings and customer reach. Overall, the balance between interest and non-interest income allows the company to maintain a diversified revenue model.

Associated Banc-Corp Financial Statement Overview

Summary

Financials show a strong 2025 rebound with meaningfully faster revenue growth, sharply improved profitability/margins, and solid free-cash-flow coverage of earnings. Offsetting this are historically volatile margins/earnings across cycles and recently rising leverage (debt increasing notably from 2023 to 2025), which adds balance-sheet risk if profitability softens.

Income Statement

Revenue accelerated meaningfully in 2025 (up 14.5% vs. near-flat in 2024), and profitability rebounded sharply with net margin improving to ~19.3% from ~5.9% in 2024. EBIT margin also strengthened to ~23.5% (vs. ~6.4% in 2024), signaling a strong earnings recovery. The main weakness is volatility: margins were much higher in 2021–2022, fell materially in 2023–2024, then rebounded in 2025—suggesting earnings power has been inconsistent across cycles.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.84 in 2025, improved versus the 2022 peak (~1.29), and equity has grown steadily (to ~$5.0B in 2025 from ~$4.0B in 2020–2022). Returns on equity improved to ~9.5% in 2025 from ~2.7% in 2024, reflecting the earnings recovery. The key risk is balance-sheet leverage trending higher recently (debt rising from ~$2.8B in 2023 to ~$4.2B in 2025), which reduces flexibility if profitability softens again.

Cash Flow

Cash generation is solid and improving: operating cash flow rose to ~$616M in 2025 (from ~$580M in 2024), and free cash flow grew ~9.4% in 2025 after modest growth in 2024. Free cash flow also covered net income well in recent years, reaching 1.0x in 2025 (and ~0.92x in 2024). The weakness is variability over time (including a sharp free-cash-flow decline in 2023) and relatively low operating cash flow versus the company’s asset base as indicated by the provided coverage metric.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.46B	2.10B	2.02B	1.42B	1.12B
Gross Profit	1.43B	944.38M	1.01B	1.20B	1.14B
EBITDA	577.91M	236.97M	300.36M	528.51M	506.75M
Net Income	474.78M	123.14M	182.96M	366.12M	350.99M
Balance Sheet
Total Assets	45.20B	43.02B	41.02B	39.41B	35.10B
Cash, Cash Equivalents and Short-Term Investments	5.97B	5.57B	4.52B	3.34B	5.36B
Total Debt	4.17B	3.16B	2.81B	5.17B	2.22B
Total Liabilities	40.23B	38.42B	36.84B	35.39B	31.08B
Stockholders Equity	4.98B	4.61B	4.17B	4.02B	4.02B
Cash Flow
Free Cash Flow	584.73M	535.26M	380.93M	783.86M	477.27M
Operating Cash Flow	621.10M	580.25M	442.74M	846.57M	529.55M
Investing Cash Flow	-1.63B	-2.22B	-1.44B	-5.25B	-1.58B
Financing Cash Flow	1.71B	1.73B	1.30B	4.00B	1.36B

Associated Banc-Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASB, the sentiment is Neutral. The current price of 27.61 is below the 20-day moving average (MA) of 28.08, above the 50-day MA of 27.14, and above the 200-day MA of 25.37, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASB.

Associated Banc-Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBOC	80 Outperform	$4.28B	10.20	14.31%	2.03%	0.99%	4.94%
TCBI	76 Outperform	$4.27B	14.64	9.44%	―	5.19%	3454.95%
ASB	74 Outperform	$4.52B	9.84	3.78%	3.51%	-1.44%	-21.65%
SFBS	73 Outperform	$4.57B	16.54	15.24%	1.82%	3.97%	24.91%
ABCB	71 Outperform	$5.42B	13.23	10.53%	1.02%	2.20%	20.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BANF	57 Neutral	$3.72B	15.69	13.85%	1.70%	6.55%	12.94%

Associated Banc-Corp Corporate Events

Associated Banc-Corp Posts Record 2025 Profit, Plans Expansion

Associated Banc-Corp reported record net income available to common shareholders of $463 million for full-year 2025, driven by 4.7% total loan growth, 11.6% commercial and industrial loan growth, 2.6% deposit growth, and 14.7% net interest income growth, alongside net interest margin expansion and improved efficiency and credit metrics. The company outlined a sustained organic growth strategy centered on expanding commercial teams, upgrading digital and mass affluent offerings, and accelerating investment and customer acquisition in key metro markets—particularly Milwaukee, Chicago, Twin Cities, Omaha, Kansas City and Dallas—to gain market share and support continued loan and checking household growth in 2026 and beyond.

The most recent analyst rating on (ASB) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Associated Banc-Corp stock, see the ASB Stock Forecast page.

Associated Banc-Corp Announces Leadership Promotions and Initiatives

In 2025, Associated Banc-Corp announced several leadership promotions and strategic initiatives aimed at enhancing profitability and market presence. The company has focused on growing its commercial and industrial loans, reducing reliance on residential mortgages, and improving its digital banking services. These efforts are part of a broader strategy to drive growth and profitability, with significant investments in leadership and infrastructure to support these goals.

The most recent analyst rating on (ASB) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Associated Banc-Corp stock, see the ASB Stock Forecast page.

Associated Banc-Corp Announces Merger with American National

On November 30, 2025, Associated Banc-Corp entered into a merger agreement with American National Corporation, whereby American National will merge into Associated, with the latter surviving. This merger, unanimously approved by both companies’ boards, involves a stock exchange and aims to consolidate American National’s banking subsidiary into Associated’s, enhancing Associated’s market position. The merger is subject to customary closing conditions, regulatory approvals, and shareholder agreements, with an expected impact on governance as American National’s executives will join Associated’s board.

The most recent analyst rating on (ASB) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Associated Banc-Corp stock, see the ASB Stock Forecast page.

Associated Banc-Corp Announces Merger with American National

On December 1, 2025, Associated Banc-Corp and American National Corporation announced an agreement for American National to merge into Associated Banc-Corp, with the latter continuing as the surviving entity. This merger, valued at approximately $604 million, is expected to close in the second quarter of 2026 and aims to expand Associated’s presence in strategic Midwest markets, making it the #2 bank in the Omaha MSA and #10 in the Minneapolis/St. Paul MSA by deposit market share.

The most recent analyst rating on (ASB) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Associated Banc-Corp stock, see the ASB Stock Forecast page.