Associated Banc-Corp (ASB) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ASB

Associated Banc-Corp faces challenges despite recent positive earnings reports. The company's repositioning efforts, completed in Q4 2024, have yielded improved net interest income and strengthened capital ratios. However, its valuation remains under scrutiny, with comparisons to peers like UMB Financial (UMBF) sparking debates about its value proposition. The upcoming Q3 2025 earnings release, slated for October 23, 2025, may provide further insight into the company's trajectory. Notably, no recent announcements on share buybacks have been made.

1.c. Company Highlights

Last Price	26.3
Change Percentage	1.02%
Open	26.15
Previous Close	26.03
Market Cap ( Millions)	4363
Volume	1211590
Year High	27.46
Year Low	18.32
M A 50	25.46
M A 200	24.26

FCF Yield	11.67%
Dividend Yield	3.54%
ROE	3.72%
Debt / Equity	86.57%
Net Debt / EBIDTA	1184.33%
Price To Book	0.89
Price Earnings Ratio	24.65
Price To FCF	8.57
Price To sales	2.31
EV / EBITDA	25.72

2. Associated Banc-Corp's Strong Q3 2025 Earnings: A Closer Look

Associated Banc-Corp reported earnings of $0.73 per share in Q3 2025, beating analyst estimates of $0.66. The company's net interest income reached a record $305 million, up 16% from Q3 2024, driven by a 3.04% net interest margin. Total loans grew 1% versus Q2 and 3% versus Q3 2024, with C&I lending leading the growth at a 5.5% rate over the past year. The company's strong financial performance was also reflected in its core customer deposits, which increased by over $600 million, up 4% or $1.2 billion from Q3 2024.

Publication Date: Oct -27

                                    📋 Highlights
                                    Net Interest Income Surge:
                                                Reached $305 million (16% YoY growth) with NIM at 3.04%
C&I Loan Expansion:
                                                Added $1 billion YTD, including $300 million new loans (5.5% annual growth)
Efficiency Improvements:
                                                Efficiency ratio below 55% for third consecutive quarter
Deposit Growth Momentum:
                                                $600 million core deposit increase in Q3 (4% QoQ growth)
Strong Pipeline Growth:
                                                Loan pipeline up 31%, deposit pipeline up 46% YoY

                                

Loan and Deposit Growth

The company added nearly $1 billion in high-quality C&I loans year-to-date and over $600 million in core deposits in Q3. Total loans grew 3% versus Q3 2024, driven by C&I lending, which saw nearly $300 million in new loans. The bank's pipeline is up 31% on the loan side and 46% on the deposit side, indicating strong growth prospects. The bank expects total bank loan growth of 5-6% for the year and core customer deposit growth to come in towards the lower end of the 4-5% growth range.

Valuation and Dividend Yield

With a P/TBV ratio of 0.88, the stock appears to be reasonably valued. The dividend yield stands at 3.6%, providing a relatively attractive return for investors. The bank's strong capital position, with a TCE ratio of 8.18% and a CET1 ratio of 10.33%, supports its ability to maintain a stable dividend payout.

Outlook and Expectations

The company expects to drive net interest income growth of 14-15% in 2025 and is optimistic about 2026 fundamentals, with analysts estimating revenue growth of 5.7% next year. The bank's lending pipeline increase is largely due to the approach from new hires, and the tools they have been provided. The bank's margin outlook is stable, with a focus on stability and remixing generating a basis point or 2 of margin improvement.

Expense Management

The bank's expense, specifically personnel expense, is expected to be stable, with incentive comp being a part of the numbers going forward. The company is planning for a less than 25% expense increase in 2026, indicating a disciplined approach to cost management. A new deposit system upgrade is expected to enhance their wealth management product and drive growth, and is already baked into their expense structure.

3. NewsRoom

ASB to Deepen Midwest Presence Via $604M American National Buyout

Dec -02

Source: zacks.com

Associated Banc-Corp (ASB) M&A Call Transcript

Dec -01

Source: seekingalpha.com

Associated Banc-Corp to accelerate growth strategy with acquisition of American National Corporation

Dec -01

Source: prnewswire.com

Creative Planning Trims Position in Associated Banc-Corp $ASB

Nov -26

Source: defenseworld.net

Associated Banc-Corp $ASB Shares Sold by Creative Planning

Nov -26

Source: defenseworld.net

Associated Bank Promotes Jay Sodey to Madison Market President

Nov -19

Source: prnewswire.com

Associated Banc-Corp to Attend the 2025 Piper Sandler Financial Services Conference on November 10-12, 2025

Nov -07

Source: prnewswire.com

EdgeTI Announces Highly Strategic and Accretive Transaction with Austal Ltd. (ASB) by Executing Definitive Agreements to Acquire the Operations of Austal Australia's Digital Advanced Technology Division in an All Share Transaction at CAD $1.00 Resulting in Austal Ltd.

Nov -04

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.13%)

6. Segments

Community, Consumer, and Business

Expected Growth: 12%

{'Community': 'Strong branch network, increased mortgage lending, and higher deposit growth driven by digital banking adoption.', 'Consumer': 'Rise in consumer spending, low unemployment, and increased credit card usage contributing to loan growth.', 'Business': 'Expansion in commercial lending, growth in treasury management services, and increased demand for capital markets products.'}

Corporate and Commercial Specialty

Expected Growth: 13%

Associated Banc-Corp's Corporate and Commercial Specialty segment growth of 13% is driven by increasing demand for specialized lending products, expansion into new markets, and strategic partnerships. Additionally, the segment benefits from a strong risk management framework, allowing for prudent credit growth and improved asset quality.

Risk Management and Shared Services

Expected Growth: 11%

Associated Banc-Corp's 11% growth in Risk Management and Shared Services is driven by increasing demand for risk assessment and mitigation services, expansion of digital banking platforms, and strategic cost savings initiatives. Additionally, the company's focus on operational efficiency, process automation, and talent acquisition have contributed to this growth.

7. Detailed Products

Commercial Banking

Associated Banc-Corp offers a range of commercial banking services, including cash management, lending, and treasury management solutions, to help businesses manage their finances and achieve their goals.

Consumer Banking

Associated Banc-Corp provides consumer banking services, including checking and savings accounts, credit cards, personal loans, and mortgages, to help individuals manage their personal finances.

Wealth Management

Associated Banc-Corp offers wealth management services, including investment management, trust services, and financial planning, to help individuals and families achieve their long-term financial goals.

Insurance

Associated Banc-Corp provides insurance services, including life insurance, disability insurance, and long-term care insurance, to help individuals and businesses manage risk and protect their assets.

Specialized Financial Services

Associated Banc-Corp offers specialized financial services, including asset-based lending, factoring, and equipment financing, to help businesses with unique financial needs.

8. Associated Banc-Corp's Porter Forces

Forces Ranking

Threat Of Substitutes

Associated Banc-Corp operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and diverse product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Associated Banc-Corp's customers are primarily individuals and small businesses, which have limited bargaining power. The company's large customer base and diversified product offerings also reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

Associated Banc-Corp's suppliers are primarily technology and service providers, which have limited bargaining power. The company's large scale of operations and diversified supplier base also reduce the bargaining power of individual suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. Associated Banc-Corp's established brand reputation and large customer base also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Associated Banc-Corp operates in a crowded market, and its competitors are aggressively pursuing growth strategies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.28%
Debt Cost	8.86%
Equity Weight	62.72%
Equity Cost	8.86%
WACC	8.86%
Leverage	59.45%

11. Quality Control: Associated Banc-Corp passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

First Interstate BancSystem

A-Score: 6.7/10

Value: 5.9

Growth: 4.2

Quality: 7.4

Yield: 10.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Valley National Bank

A-Score: 6.4/10

Value: 5.9

Growth: 4.6

Quality: 6.4

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Cullen Frost Bankers

A-Score: 6.3/10

Value: 4.2

Growth: 6.9

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Associated Banc

A-Score: 6.0/10

Value: 5.1

Growth: 4.8

Quality: 4.3

Yield: 8.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

Prosperity Bancshares

A-Score: 5.7/10

Value: 4.1

Growth: 4.0

Quality: 7.5

Yield: 6.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

Western Alliance

A-Score: 5.5/10

Value: 8.1

Growth: 5.7

Quality: 7.0

Yield: 4.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.85%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.86%

Associated Banc-Corp - US0454871056

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ASB

1.c. Company Highlights

Lower Growth

Average Yield

Stable Momentum

Earnings Beats

Revenues Beats

Average Quality

Fairly Valued

Cheaper

Revenues Miss

Average Growth

Lower Quality

Lower Yield

2. Associated Banc-Corp's Strong Q3 2025 Earnings: A Closer Look

Loan and Deposit Growth

Valuation and Dividend Yield

Outlook and Expectations

Expense Management

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.13%)

6. Segments

Community, Consumer, and Business

Expected Growth: 12%

Corporate and Commercial Specialty

Expected Growth: 13%

Risk Management and Shared Services

Expected Growth: 11%

7. Detailed Products

Commercial Banking

Consumer Banking

Wealth Management

Insurance

Specialized Financial Services

8. Associated Banc-Corp's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Associated Banc-Corp passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.29$

Current Price

26.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA