Education
About Us
Working with TipRanks
Follow Us
Associated Banc-Corp (ASB)
NYSE:ASB
Top Page
Associated Banc-Corp
(NYSE:ASB)
Rating:72Outperform
Price Target:
$28.00
▲(5.11% Upside)
Positive Factors
Credit Trends
Credit had positive trends with non-performing loans decreasing and provisions below estimates.
Franchise Growth
Management has done well to improve the growth rate of the franchise, with profitability improvement to follow.
Negative Factors
Loan Growth
Net interest income was weaker than expected due to softer loan growth, impacting overall profitability.
Net Interest Income
Faster rate cuts weigh on lowered Net Interest Income guidance, impacting earnings.
Associated Banc-Corp (ASB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.43B
Dividend Yield3.45%
Average Volume (3M)1.33M
Price to Earnings (P/E)35.1
Beta (1Y)1.20
Revenue Growth-1.23%
EPS Growth-34.14%
CountryUS
Employees4,006
SectorFinancial
Sector Strength77
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.66
Shares Outstanding165,848,020
10 Day Avg. Volume1,132,132
30 Day Avg. Volume1,331,315
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.90
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit8.59
Enterprise Value/Ebitda33.00
Forecast
1Y Price Target
$28.50Price Target Upside6.98% Upside
Rating ConsensusHold
Number of Analyst Covering9
Associated Banc-Corp Business Overview & Revenue Model
Company DescriptionAssociated Banc-Corp (ASB) is a diversified financial services company headquartered in Green Bay, Wisconsin. It operates primarily in the banking sector and offers a wide range of financial products and services, including commercial and retail banking, investment management, and treasury management services. The company serves various client segments, including individuals, businesses, and governmental entities, through its extensive network of branches and digital banking platforms.
How the Company Makes MoneyAssociated Banc-Corp generates revenue through several key streams, primarily from net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits and other borrowings. The company offers a variety of loan products, including commercial loans, consumer loans, and mortgages. Additionally, ASB earns non-interest income through service charges on deposit accounts, wealth management fees, and transaction-related fees. Significant partnerships with other financial institutions and businesses also contribute to its earnings by facilitating cross-selling of products and expanding its customer base.
Associated Banc-Corp Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance, with record net interest income and robust commercial loan growth. Despite seasonal deposit outflows and slight increases in delinquencies, the company remains confident in achieving its growth targets for the year. The strategic plan execution appears to be yielding positive results, contributing to a positive outlook.Q2-2025 Updates
Positive Updates
Record Organic Checking Household Growth
In Q2, Associated Banc-Corp posted the best organic checking household growth since tracking began nearly a decade ago.
Strong Commercial Loan Growth
C&I loans grew by over $700 million in the first half of 2025, well on the way to exceeding the $1.2 billion target for the year.
Record Net Interest Income
Quarterly net interest income reached $300 million, the strongest in the company's history, up 17% year-over-year.
Improved Return on Tangible Common Equity
Posted a return on tangible common equity of 12.96% in Q2, a 62 basis point improvement from Q1.
Deposit Growth Expectations
Core customer deposits were up 4.3% compared to the same period a year ago, with a full-year growth outlook of 4% to 5%.
Positive Operating Leverage
Total noninterest expense decreased slightly to $209 million, and the efficiency ratio dipped below 56%, the lowest since early 2023.
Negative Updates
Seasonal Deposit Outflows
Q2 deposit levels were impacted by seasonal outflows, although total deposits are up over 4% year-over-year.
Slight Increase in Total Delinquencies
Total delinquencies increased slightly to $52 million in Q2, with an uptick in the 90-plus day bucket.
CRE Investor Loan Outflows
CRE investor loans saw net outflows of $227 million, with payoff activity expected to remain elevated.
Company Guidance
During the Associated Banc-Corp's Second Quarter 2025 Earnings Conference Call, the company highlighted several key financial metrics and strategic initiatives. The bank achieved record net interest income of $300 million, a 17% increase from the previous year, driven by strong growth in commercial and industrial (C&I) loans, which increased by over $700 million in the first half of 2025. This growth is part of a larger strategy to replace lower-yielding residential mortgage loans. The bank's net interest margin rose above 3%, marking a notable improvement. Additionally, Associated Banc-Corp reported earnings of $0.65 per share and a return on tangible common equity of 12.96%, up 62 basis points from the previous quarter. The company's core customer deposits grew by 4.3% year-over-year, despite a seasonal decline in the second quarter. The CET1 capital ratio increased by 9 basis points to 10.2%, reflecting a robust capital position. Overall, Associated Banc-Corp remains focused on executing its strategic plan, aiming for continued profitability and balance sheet growth while maintaining disciplined credit management.Associated Banc-Corp Financial Statement Overview
Summary
Associated Banc-Corp has demonstrated solid revenue growth and effective cash flow management. The gross profit margin is strong, but challenges remain in net profit margin and leverage. The balance sheet shows a need for improved equity utilization and profitability.Income Statement
The income statement shows moderate performance with some challenges. The Gross Profit Margin for the TTM (Trailing-Twelve-Months) is strong at approximately 72.5%, indicating effective cost management relative to revenue. However, the Net Profit Margin has declined to 8.1% from 12.9% in 2024, reflecting pressure on net earnings. The Revenue Growth Rate for the TTM is healthy at 85.4%, showing substantial growth compared to the previous year. EBIT and EBITDA margins are relatively modest, indicating room for improvement in operational efficiency.72
Positive
Balance Sheet
The balance sheet presents a mixed picture. The Debt-to-Equity Ratio is 0.63, suggesting a balanced leverage position, although slightly higher than the previous year. The Return on Equity (ROE) is relatively low at 3.1% for the TTM, down from 2.7% in 2024, indicating a need for enhanced profitability. The Equity Ratio of 10.8% reflects a moderately leveraged position but below optimal levels for stability. Overall, the company maintains adequate financial stability but could improve equity utilization.65
Positive
Cash Flow
Cash flow performance is solid. The Free Cash Flow Growth Rate for the TTM is marginal at 0.1%, but the company effectively maintains strong free cash flow generation. The Operating Cash Flow to Net Income Ratio is robust at 3.65, highlighting efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio stands at 3.73, reinforcing the company's ability to convert earnings into cash effectively. However, there is potential to enhance cash flow growth further.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.10B | 2.02B | 1.42B | 1.12B | 1.41B |
| Gross Profit | 944.38M | 1.01B | 1.20B | 1.14B | 1.08B |
| EBITDA | 236.97M | 300.36M | 528.51M | 506.75M | 435.42M |
| Net Income | 123.14M | 182.96M | 366.12M | 350.99M | 306.77M |
Balance Sheet | |||||
| Total Assets | 43.02B | 41.02B | 39.41B | 35.10B | 33.42B |
| Cash, Cash Equivalents and Short-Term Investments | 5.57B | 4.52B | 3.34B | 5.36B | 3.80B |
| Total Debt | 3.16B | 2.81B | 5.17B | 2.22B | 2.43B |
| Total Liabilities | 38.42B | 36.84B | 35.39B | 31.08B | 29.33B |
| Stockholders Equity | 4.61B | 4.17B | 4.02B | 4.02B | 4.09B |
Cash Flow | |||||
| Free Cash Flow | 535.26M | 380.93M | 783.86M | 477.27M | 495.14M |
| Operating Cash Flow | 580.25M | 442.74M | 846.57M | 529.55M | 550.02M |
| Investing Cash Flow | -2.22B | -1.44B | -5.25B | -1.58B | -793.74M |
| Financing Cash Flow | 1.73B | 1.30B | 4.00B | 1.36B | 371.02M |
Associated Banc-Corp Technical Analysis
Positive
26.64
Price Trends
25.16
Positive
23.78
Positive
23.69
Positive
Market Momentum
0.53
Negative
64.33
Neutral
55.83
Neutral
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 26.64 is above the 20-day moving average (MA) of 25.45, above the 50-day MA of 25.16, and above the 200-day MA of 23.69, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 55.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASB.
Associated Banc-Corp Risk Analysis
Associated Banc-Corp disclosed 70 risk factors in its most recent earnings report. Associated Banc-Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Associated Banc-Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.82B | 19.13 | 15.46% | 1.48% | 8.15% | 26.16% | |
79 Outperform | $5.11B | 12.84 | 10.46% | 1.01% | 5.16% | 25.95% | |
72 Outperform | $4.43B | 35.15 | 3.07% | 3.45% | -1.23% | -34.14% | |
72 Outperform | $3.99B | 34.67 | 4.01% | ― | 6.86% | -8.81% | |
68 Neutral | $18.06B | 11.97 | 10.24% | 3.74% | 9.75% | 1.30% | |
68 Neutral | $4.55B | 19.27 | 14.43% | 1.35% | 9.63% | 15.57% | |
68 Neutral | $4.50B | 10.75 | 14.71% | 1.96% | 1.99% | 2.08% |
* Financial Sector Average
Performance Comparison
ASB
Associated Banc-Corp
26.64
6.01
29.13%
ABCB
Ameris Bancorp
74.03
15.31
26.07%
BANF
BancFirst
134.27
30.67
29.60%
IBOC
International Bancshares
71.58
12.25
20.65%
TCBI
Texas Capital Bancshares
86.52
18.55
27.29%
SFBS
ServisFirst Bancshares
87.50
11.95
15.82%
Associated Banc-Corp Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Associated Banc-Corp Announces Retirement of David Stein
Neutral
May 9, 2025
On May 8, 2025, Associated Banc-Corp announced the retirement of David Stein, who has been with the company for over 20 years. Stein will step down as executive vice president and head of consumer and business banking on July 1, 2025, transitioning to a strategic advisor role and continuing as Madison market president until the end of 2025. His leadership has been instrumental in advancing the bank’s consumer and business banking sectors, and he will contribute to the development of the next strategic plan before his full retirement. Steven Zandpour will take over as head of consumer and business banking effective July 1, 2025.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.