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's recent performance was driven by strong Q4 earnings, with revenue and credit quality improving while provisions and expenses declined. The company's quarterly earnings of $0.8 per share beat the Zacks Consensus Estimate of $0.69 per share, with earnings of $0.57 per share a year ago. Additionally, the company's board initiated a share buyback program, authorizing the repurchase of $100 million in shares, which is a positive event for shareholders.

1.c. Company Highlights

Last Price	28.56
Change Percentage	0.79%
Open	28.16
Previous Close	28.34
Market Cap ( Millions)	4741
Volume	1875017
Year High	29.52
Year Low	18.32
M A 50	27.11
M A 200	25.56

FCF Yield	12.22%
Dividend Yield	3.26%
ROE	9.83%
Debt / Equity	83.82%
Net Debt / EBIDTA	550.62%
Price To Book	0.95
Price Earnings Ratio	9.93
Price To FCF	8.18
Price To sales	1.93
EV / EBITDA	12.77

2. Associated Banc-Corp's Strong Q4 2025 Earnings Reflect Strategic Execution

Associated Banc-Corp reported a robust fourth quarter 2025, with earnings per share (EPS) of $0.80, surpassing analyst estimates of $0.69. Net interest income (NII) reached a company record, with a 15% increase for the year. Total loans grew 5% versus 2024, driven by a 2% growth in commercial and industrial (C&I) loans in Q4 and $1.2 billion for the year. The company's core deposits grew by nearly $1 billion versus Q4 of last year, demonstrating its ability to attract and retain customers.

Publication Date: Jan -25

📋 Highlights

Loan and Deposit Growth

The company's C&I loan growth was a significant contributor to its overall performance, with a $1.2 billion increase for the year. Core deposits also showed substantial growth, with a nearly $1 billion increase versus Q4 of last year. This growth is expected to continue, with the company forecasting 5% to 6% growth in core customer deposits for 2026.

Acquisition and Expansion

Associated Banc-Corp announced an agreement to acquire American National Corporation, expanding its presence in the Omaha market and strengthening its position in the Twin Cities market. This acquisition is expected to enhance the company's growth prospects and drive future profitability.

Credit Quality and Capital Management

The company's credit metrics remain strong, with low charge-offs, non-performing loans (NPLs), and criticized assets. The allowance for credit losses (ACL) increased by $5 million to $419 million, driven by commercial and business lending. The company's capital ratios also improved, with the tangible common equity (TCE) ratio rising to 8.29% and the common equity tier 1 (CET1) ratio to 10.49%.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.88, the stock appears reasonably valued relative to its book value. The Dividend Yield stands at 3.52%, providing a relatively attractive return for income investors. For 2026, the company expects to drive net interest income growth between 5.5% and 6.5%, core customer deposits to grow by 5% to 6%, and non-interest income to grow by 4% to 5%. Analysts estimate revenue growth at 9.2% for next year, indicating a positive outlook for the company's future performance.

3. NewsRoom

Associated Banc-Corp Keeps Pushing Forward

Feb -13

Source: seekingalpha.com

Associated Banc-Corp Still A Worthy Option To Consider

Feb -05

Source: seekingalpha.com

Associated Banc-Corp to Attend Three First Quarter 2026 Investor Events

Feb -02

Source: prnewswire.com

ASB or CBSH: Which Is the Better Value Stock Right Now?

Jan -28

Source: zacks.com

Associated Banc (NYSE:ASB) to Buyback $100.00 million in Outstanding Stock

Jan -28

Source: defenseworld.net

Associated Banc-Corp Announces Dividends and Share Repurchase Program

Jan -27

Source: prnewswire.com

ASB Q4 Earnings Beat as Revenues Improve, Provisions Decline

Jan -23

Source: zacks.com

Associated Banc-Corp (ASB) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -23

Source: zacks.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: 6.2/10

Value: 5.9

Growth: 4.2

Quality: 7.1

Yield: 9.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Valley National Bank

A-Score: 6.1/10

Value: 6.1

Growth: 4.6

Quality: 5.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Associated Banc

A-Score: 5.7/10

Value: 5.3

Growth: 4.8

Quality: 4.1

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Prosperity Bancshares

A-Score: 5.7/10

Value: 5.6

Growth: 4.0

Quality: 6.9

Yield: 6.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

Cullen Frost Bankers

A-Score: 5.7/10

Value: 3.9

Growth: 6.9

Quality: 5.6

Yield: 6.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

Western Alliance

A-Score: 5.3/10

Value: 7.5

Growth: 5.7

Quality: 7.4

Yield: 4.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.15%

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 Q4 2025 Earnings Reflect Strategic Execution

Loan and Deposit Growth

Acquisition and Expansion

Credit Quality and Capital Management

Valuation and Outlook

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

28.56$

Current Price

28.56$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA