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 a series of positive developments. The company's acquisition of American National Corporation, completed on April 1, 2026, is expected to accelerate growth momentum in attractive markets, boost deposits, and enhance efficiency. Additionally, Associated Banc-Corp has expanded its buybacks, signaling strong capital discipline and positioning to sustain shareholder returns. The company has also boosted its dividends, demonstrating a commitment to returning value to shareholders. Furthermore, Associated Banc-Corp has been actively pursuing growth deals, highlighting its focus on expansion and growth. The recent appointment of Jason Hansen as Nebraska and Western Iowa market president is also a positive development, underscoring the company's commitment to its regional presence.

1.c. Company Highlights

Last Price	28.16
Change Percentage	1.15%
Open	27.65
Previous Close	27.84
Market Cap ( Millions)	4673
Volume	1660786
Year High	29.52
Year Low	22.4
M A 50	26.48
M A 200	26.15

FCF Yield	13.39%
Dividend Yield	3.34%
ROE	10.04%
Debt / Equity	88.24%
Net Debt / EBIDTA	595.64%
Price To Book	0.93
Price Earnings Ratio	9.44
Price To FCF	7.47
Price To sales	1.89
EV / EBITDA	13.01

2. Associated Banc‑Corp Q1 2026: Momentum Drives Earnings Above Guidance

Associated Banc‑Corp delivered a robust first‑quarter performance, posting earnings of $0.71 per share—surpassing analysts’ $0.67 estimate—while net interest income rose to $307 million, up 7% YoY, and the net interest margin settled at 3.03%. “We entered 2026 with strong momentum,” said President & CEO Andy Harmening, underscoring the bank’s solid credit profile and accelerated deposit growth. The stock trades at a modest P/E of 12.35, a P/TBV of 0.92, a NIM of 3.03%, and offers a dividend yield of 3.37%, positioning it as an attractive value play within the financial sector.

Publication Date: Apr -24

                                    📋 Highlights
                                    Loan and Deposit Growth::
                                                Total loans increased by $600 million (2% QoQ), and deposits grew by $179 million, driven by $500 million in period-end C&I loan growth (4.6% QoQ increase).
Acquisition Impact::
                                                Closed acquisition of American National Bank on April 1, expected to drive 8-10% income growth in 2026 compared to 2025 standalone results.
Financial Performance::
                                                Q1 earnings of $0.70/share; net interest income of $307 million (7% YoY increase), with a net interest margin of 3.03% (3 bps decline QoQ).
Credit Quality Stability::
                                                Non-accrual loans rose to $111 million (+$10M QoQ) but fell $24M YoY; ACLL increased to $425 million (+$6M QoQ), with net charge-offs at 7 bps.
Capital and Efficiency::
                                                CET1 ratio at 10.47% (+36 bps YoY), tangible book value at $22.23/share (+$2 YoY), and adjusted efficiency ratio at 55.8% (up from 55.2% QoQ).

                                

Loan Growth & Portfolio Quality

Loan growth accelerated to $600 million, a 2% YoY increase, with commercial‑industrial lending expanding by $500 million. The bank’s CECL assumptions, anchored to Moody’s February 2026 baseline, kept the ACL ratio stable, while net charge‑offs remained at 7 basis points. Despite a modest rise in total delinquencies to $88 million, the portfolio quality remained strong, with non‑accrual balances at $111 million, down 24 million from a year ago.

Deposit Dynamics & Funding Strategy

Deposits grew by $179 million, driven by a 2.2% annualized increase in checking households. The firm’s focus on marketing in new markets—Dallas and Kansas City—has begun to pay off, and the deposit mix is shifting toward interest‑bearing instruments, which should help sustain net interest income even if rate cuts stall. The bank’s CET1 ratio climbed to 10.47%, reinforcing its resilience.

Capital Position & Shareholder Returns

Capital buffers improved, with a CET1 ratio up 36 bps from Q1 2025 and a tangible book value per share of $22.23. The bank will deploy its $100 million share‑buyback authorization this year, signalling confidence in its capital structure and providing upside to shareholders. The negative net debt/EBITDA of –0.91 further underscores the firm’s solid balance sheet.

Strategic Expansion & Acquisition Impact

The acquisition of American National Bank closed on April 1, adding $425 million in ACLL and reinforcing the bank’s presence in major metro markets. The deal’s purchase‑accounting adjustments are expected to be finalized next quarter, with minimal impact on 2026 outlook. The new C&I office in Dallas and the national franchise banking vertical are expected to capture additional revenue streams, enhancing the bank’s growth trajectory.

Outlook & Guidance

For 2026, Associated Banc‑Corp anticipates earnings growth of 8–10% YoY, with net interest income projected at 5.5%–6.5% of assets, potentially rising to 7%–8% if rate cuts materialize. Non‑interest expense is expected to remain near current levels, and the bank remains bullish on its expansion strategy, particularly in Omaha, the fastest‑growing metro outside Dallas. Overall, the firm’s trajectory positions it well to capitalize on favorable loan yields and a stable funding base while delivering shareholder value through disciplined capital management and a proactive acquisition strategy.

3. NewsRoom

Associated Banc-Corp to Attend Four Second Quarter Investor Events

Apr -30

Source: prnewswire.com

Associated Announces Annual Meeting Results; Dividends; Stock Repurchase Program; and New Technology Committee

Apr -28

Source: prnewswire.com

Associated Banc-Corp Q1 Earnings Beat as Revenues Rise, Provisions Dip

Apr -24

Source: zacks.com

Associated Banc-Corp (ASB) Q1 2026 Earnings Call Transcript

Apr -24

Source: seekingalpha.com

Associated Banc-Corp (ASB) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -24

Source: zacks.com

Associated Banc-Corp (ASB) Surpasses Q1 Earnings and Revenue Estimates

Apr -23

Source: zacks.com

Associated Banc-Corp Reports First Quarter 2026 Net Income Available to Common Equity of $117 Million, or $0.70 per Common Share

Apr -23

Source: prnewswire.com

Associated Banc-Corp (ASB) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Apr -22

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

-2.44%

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 Q1 2026: Momentum Drives Earnings Above Guidance

Loan Growth & Portfolio Quality

Deposit Dynamics & Funding Strategy

Capital Position & Shareholder Returns

Strategic Expansion & Acquisition Impact

Outlook & Guidance

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

28.16$

Current Price

28.16$

Potential

-0.00%

Expected Cash-Flows

2. Associated Banc‑Corp Q1 2026: Momentum Drives Earnings Above Guidance

12.e Scoring ^Insights

12.f DCF ^BETA