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Associated Banc-Corp (ASB)
NYSE:ASB
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Associated Banc-Corp
(NYSE:ASB)
63Neutral
Positive Factors
Financial Stability
The ability to grow customer deposits and manage funding costs is providing confidence in future financial stability and growth.
Growth and Profitability
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. S&P 500 (SPY)
Market Cap
$3.71B
Dividend Yield3.98%
Average Volume (3M)1.62M
Price to Earnings (P/E)30.9
Beta (1Y)1.25
Revenue Growth4.88%
EPS Growth-30.04%
CountryUS
Employees4,000
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.78
Shares Outstanding165,639,130
10 Day Avg. Volume1,672,657
30 Day Avg. Volume1,621,008
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.64
Price to Cash Flow (P/CF)4.50
P/FCF Ratio2.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.67Price Target Upside23.64% Upside
Rating ConsensusHold
Number of Analyst Covering7
Associated Banc-Corp Business Overview & Revenue Model
Company DescriptionAssociated 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 MoneyAssociated Banc-Corp generates revenue primarily through interest earned on loans and securities, which is a significant component of its net interest income. The company also earns non-interest income through fees and service charges related to deposit accounts, wealth management and investment services, and loan servicing. Additionally, insurance services contribute to its revenue streams. Associated Banc-Corp benefits from strategic partnerships and community banking initiatives, leveraging its strong regional presence and customer relationships to drive growth and profitability.
Associated Banc-Corp Financial Statement Overview
Summary
Associated Banc-Corp's financial health is stable with consistent revenue growth and a strong balance sheet. However, declining net profit margins and fluctuating cash flow metrics suggest challenges in managing operational costs and converting revenue into profit. Continued focus on efficiency improvements and cost management could enhance profitability.Income Statement
The gross profit margin remains consistent as gross profit equals total revenue, indicating an efficient cost structure. However, net profit margin has decreased from 15.5% in 2022 to 5.8% in 2024, reflecting increased expenses or reduced income. Revenue grew significantly from 2023 to 2024 by 108.2%, but net income declined, indicating potential challenges in cost management or profit realization.63
Positive
Balance Sheet
The company has demonstrated strong equity growth with stockholders' equity increasing steadily, reflecting robust financial health. There is a decrease in total debt over the years, leading to a favorable debt-to-equity ratio. However, the equity ratio has slightly declined over the years, indicating a higher proportion of liabilities relative to assets.71
Positive
Cash Flow
Operating cash flow has shown a positive trend but is not consistently converted into net income, as seen in the fluctuating operating cash flow to net income ratio. Free cash flow has grown, but the free cash flow growth rate was negative from 2022 to 2023, signaling potential volatility. The company has maintained strong cash reserves, aiding liquidity.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.03B | 1.02B | 1.20B | 1.13B | 1.12B | Gross Profit |
| 2.12B | 1.02B | 1.20B | 1.13B | 1.12B | EBIT |
| -1.31B | 324.18M | 692.65M | 436.31M | 326.97M | EBITDA |
| 0.00 | 0.00 | 513.53M | 440.98M | 359.70M | Net Income Common Stockholders |
| 123.14M | 182.96M | 366.12M | 350.99M | 306.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.13B | 4.09B | 436.95M | 5.36B | 3.80B | Total Assets |
| 43.02B | 41.02B | 39.41B | 35.10B | 33.42B | Total Debt |
| 2.69B | 2.48B | 4.59B | 1.91B | 2.24B | Net Debt |
| 1.69B | 1.57B | 4.00B | 879.59M | 1.53B | Total Liabilities |
| 38.42B | 36.84B | 35.39B | 31.08B | 29.33B | Stockholders Equity |
| 4.41B | 4.17B | 4.02B | 4.02B | 4.09B |
| Cash Flow | Free Cash Flow | |||
| 580.25M | 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
Negative
22.38
Price Trends
23.87
Negative
24.51
Negative
22.83
Negative
Market Momentum
-0.32
Negative
42.75
Neutral
49.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASB, the sentiment is Negative. The current price of 22.38 is below the 20-day moving average (MA) of 22.56, below the 50-day MA of 23.87, and below the 200-day MA of 22.83, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 49.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.13B | 17.62 | 7.62% | 0.86% | 14.99% | -16.42% | |
72 Outperform | $21.60B | 12.12 | 9.93% | 4.19% | 10.13% | -1.25% | |
71 Outperform | $7.30B | 9.99 | 13.15% | 3.40% | 7.91% | 13.79% | |
69 Neutral | $6.71B | 12.50 | 9.06% | 2.66% | 16.39% | -13.25% | |
64 Neutral | $14.24B | 10.27 | 8.97% | 4.33% | 16.38% | -11.94% | |
63 Neutral | $3.71B | 30.93 | 2.79% | 3.98% | 4.88% | -30.04% |
* Financial Sector Average
Performance Comparison
ASB
Associated Banc-Corp
22.38
1.90
9.28%
HBAN
Huntington Bancshares
14.79
1.64
12.47%
ONB
Old National Bancorp Capital
21.03
4.84
29.89%
PNFP
Pinnacle Financial Partners
105.06
22.26
26.88%
ZION
Zions Bancorporation National Association
49.47
7.90
19.00%
Associated Banc-Corp Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -10.84% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic growth initiatives, such as significant loan and deposit growth and a proactive balance sheet repositioning. However, these achievements were partially offset by nonrecurring losses and an increase in delinquencies. Despite these challenges, the overall sentiment remains optimistic with a focus on future growth.Highlights
Strong Loan and Deposit Growth
In Q4 2024, adjusted loan growth was over $500 million, and core customer deposit growth was nearly $900 million.
Significant Balance Sheet Repositioning
Sold approximately $700 million in low-yielding mortgage loans and $1.3 billion in AFS securities to improve the balance sheet.
Positive Financial Performance
Adjusted earnings per share of $0.57, reflecting the strength of core businesses despite nonrecurring items.
Increased Commercial and Business Lending
Commercial and business lending segments grew by over $300 million, contributing to the overall loan growth.
Improvement in Nonaccrual Loans and Charge-offs
Decreases in nonaccrual loans, charge-offs, and provisions compared to the previous quarter and year.
Lowlights
Nonrecurring Losses from Balance Sheet Repositioning
A $130 million loss from the sale of mortgages and a $148 million net loss on the security sale impacted noninterest income.
Increased Delinquencies
Total bank-wide delinquencies increased by $24 million from the previous quarter.
Higher Noninterest Expenses
Adjusted noninterest expense increased by $9 million from the third quarter, mainly due to acceleration of hiring and strategic investments.
Company Guidance
During the fourth quarter of 2024 earnings call for Associated Banc-Corp (ASB), the management provided robust guidance for 2025, emphasizing several key metrics. The company expects total loan growth of 5% to 6% and core customer deposit growth of 4% to 5%. They anticipate net interest income growth between 12% and 13%, driven by a pro forma net interest margin of 2.98% following strategic balance sheet repositioning. The adjusted earnings per share for Q4 was reported at $0.57, underscoring the strength of their core business. The company also plans to manage noninterest expense growth within a range of 3% to 4%. With an expected CET1 ratio of 10% to 10.5%, ASB appears well-positioned to capitalize on its strategic initiatives and continue its growth trajectory into 2025.Associated Banc-Corp Corporate Events
Business Operations and Strategy
Associated Banc-Corp Highlights 2025 Strategic Growth Initiatives
Positive
Feb 10, 2025
The investor presentation for the first quarter of 2025 highlights Associated Banc-Corp’s strategic initiatives and growth trajectory. In recent years, the company has implemented a variety of growth-focused strategies, including upgrading its digital banking experience and launching new programs to expand its commercial presence and improve profitability. These efforts have contributed to increased loan growth, improved customer satisfaction, and a stronger market position, including a significant increase in commercial and business lending and a successful repositioning of their balance sheet. The company’s disciplined credit and expense management have been key drivers in enhancing returns, with a particular focus on diversifying into higher-return categories.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.