Associated Banc-Corp (ASB) AI Stock Analysis

• Market Cap: $4.36B
• Dividend Yield: 3.54%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.15
• Revenue Growth: -1.44%
• EPS Growth: -21.65%
• Country: US
• Employees: 4,006
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.74
• Shares Outstanding: 165,922,440
• 10 Day Avg. Volume: 1,257,230
• 30 Day Avg. Volume: 1,461,249
• PEG Ratio: -0.82
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 6.78
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 3.82
• Enterprise Value/Gross Profit: 7.53
• Enterprise Value/Ebitda: 24.07
• 1Y Price Target: $29.40
• Price Target Upside: 11.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.69
• Revenue Forecast (FY): $1.48B

• Rating: 74 Outperform
• Price Target: $29.00 ▲(10.31% Upside)

Associated Banc-Corp's strong financial performance and positive earnings call are the most significant factors contributing to its score. The technical analysis supports a bullish outlook, although the high P/E ratio suggests potential overvaluation. The company's robust cash flow and strategic growth investments position it well for future growth, despite some challenges in CRE lending.

Positive Factors

Record Net Interest Income

Record net interest income indicates strong core banking operations and effective interest rate management, supporting long-term revenue stability.

Growth in C&I Loans

Significant growth in C&I loans demonstrates robust demand and strengthens the bank's market position in commercial lending.

Strong Noninterest Income

Rising noninterest income diversifies revenue streams, reducing reliance on interest income and enhancing financial resilience.

Negative Factors

CRE Lending Uncertainty

Uncertainty in CRE lending could impact future revenue and profitability, as elevated payoffs may reduce loan balances.

Flat Delinquencies and Nonaccruals

Flat delinquencies and nonaccruals suggest potential credit quality issues, which could affect future financial performance.

Decreased Prime Rate

A reduced prime rate may compress interest margins, impacting profitability if not offset by increased loan volumes.

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

Associated Banc-Corp demonstrates resilience with stable profitability and effective cash management despite negative revenue growth. Healthy margins and a solid balance sheet support the score, though improvements in revenue growth and return on equity are needed.

Income Statement

The income statement shows a decline in revenue growth rate at -11.65% TTM, indicating a challenging period. However, the company maintains a decent gross profit margin of 55.28% and a net profit margin of 7.51% TTM, suggesting operational efficiency. The EBIT and EBITDA margins are moderate at 10.30% and 15.79% TTM, respectively, reflecting stable profitability despite revenue pressures.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.95 TTM, indicating manageable leverage. The return on equity is modest at 3.01% TTM, suggesting room for improvement in generating returns for shareholders. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 6.03% TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.014 TTM, suggesting potential inefficiencies in converting income to cash. However, the free cash flow to net income ratio is strong at 92.21% TTM, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.15B	2.10B	2.02B	1.42B	1.12B	1.41B
Gross Profit	1.09B	944.38M	1.01B	1.20B	1.14B	1.08B
EBITDA	340.84M	236.97M	300.36M	528.51M	506.75M	435.42M
Net Income	176.03M	123.14M	182.96M	366.12M	350.99M	306.77M
Balance Sheet
Total Assets	44.46B	43.02B	41.02B	39.41B	35.10B	33.42B
Cash, Cash Equivalents and Short-Term Investments	1.29B	5.57B	4.52B	3.34B	5.36B	3.80B
Total Debt	4.21B	3.16B	2.81B	5.17B	2.22B	2.43B
Total Liabilities	39.59B	38.42B	36.84B	35.39B	31.08B	29.33B
Stockholders Equity	4.87B	4.61B	4.17B	4.02B	4.02B	4.09B
Cash Flow
Free Cash Flow	573.41M	535.26M	380.93M	783.86M	477.27M	495.14M
Operating Cash Flow	604.74M	580.25M	442.74M	846.57M	529.55M	550.02M
Investing Cash Flow	-2.30B	-2.22B	-1.44B	-5.25B	-1.58B	-793.74M
Financing Cash Flow	2.02B	1.73B	1.30B	4.00B	1.36B	371.02M

Associated Banc-Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASB, the sentiment is Positive. The current price of 26.29 is above the 20-day moving average (MA) of 25.33, above the 50-day MA of 25.47, and above the 200-day MA of 24.02, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASB.

Associated Banc-Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBI	74 Outperform	$4.12B	14.77	8.60%	―	5.19%	3454.95%
ASB	74 Outperform	$4.36B	28.34	3.78%	3.54%	-1.44%	-21.65%
ABCB	73 Outperform	$5.18B	13.11	10.34%	1.05%	2.20%	20.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IBOC	67 Neutral	$4.13B	9.85	14.31%	2.11%	0.99%	4.94%
SFBS	66 Neutral	$3.89B	15.23	15.24%	1.88%	3.97%	24.91%
BANF	60 Neutral	$3.69B	15.77	14.11%	1.69%	6.55%	12.94%

Associated Banc-Corp Corporate Events

Associated Banc-Corp Reports Strong Q3 Earnings

The recent earnings call for Associated Banc-Corp was filled with optimism as the company reported strong financial performance. The sentiment during the call was largely positive, driven by record net interest income, significant growth in commercial and industrial (C&I) loans, and improved capital generation. Despite some challenges, such as expected increases in commercial real estate (CRE) lending payoffs and flat delinquency rates, the company remains well-positioned for continued growth.

Associated Banc-Corp Reports Strong Q3 2025 Earnings

Associated Banc-Corp, headquartered in Green Bay, Wisconsin, is the largest bank holding company in the state, providing a wide range of financial services across the Midwest. The company operates in the banking sector with a strong presence in Wisconsin, Illinois, Minnesota, and Missouri.