New Debt & Financing Risk for Associated Banc-corp – What’s the Latest?

Associated Banc-corp (ASB) has disclosed a new risk, in the Debt & Financing category.

Associated Banc-Corp faces heightened liquidity risk due to a substantial portion of its deposit accounts exceeding FDIC insurance limits. This vulnerability was highlighted by the FDIC’s analysis of recent bank failures, which identified large concentrations of uninsured deposits as a catalyst for bank runs and threats to financial stability. Given the industry trend of large depositors moving funds to insured accounts or alternative investments, Associated Banc-Corp may struggle to secure affordable funding during financial stress, potentially impacting its net interest margin and overall financial condition. The company’s reliance on uninsured deposits places it at a greater risk of rapid withdrawal behaviors in times of uncertainty.

The average ASB stock price target is $22.71, implying 12.15% upside potential.

To learn more about Associated Banc-corp’s risk factors, click here.