Associated Banc (NYSE:ASB) Announces Quarterly Earnings Results, Hits Expectations

by · The Cerbat Gem

Associated Banc (NYSE:ASB – Get Free Report) announced its quarterly earnings results on Thursday. The bank reported $0.76 earnings per share for the quarter, meeting the consensus estimate of $0.76, Zacks reports. The company had revenue of $464.38 million during the quarter, compared to analysts’ expectations of $463.69 million. Associated Banc had a return on equity of 10.64% and a net margin of 19.66%. During the same period last year, the business earned $0.73 earnings per share.

Here are the key takeaways from Associated Banc’s conference call:

  • Net interest income rose 2% sequentially to $377 million, while net interest margin expanded three basis points to 3.20%, supported by stronger core deposits and balance-sheet remixing.
  • Core customer deposits increased nearly $700 million, or 2%, helping reduce wholesale funding; management maintained its 2026 guidance for 17%-19% total deposit growth and 19%-21% core customer deposit growth.
  • Management reiterated its 2026 loan-growth outlook of 18%-20% for the combined company and cited commercial pipelines up roughly 36%-40% year over year, despite elevated third-quarter payoffs.
  • The company repurchased $100 million of shares in the quarter and expects to complete the remaining authorization in the fourth quarter, while maintaining a CET1 target range of 10%-10.75%.
  • Credit metrics remained generally stable, with net charge-offs declining to 19 basis points and criticized loans falling 7%, although non-accrual balances rose by $33 million and third-quarter expenses included $13 million of acquisition-related costs.

Associated Banc Price Performance

NYSE ASB traded up $0.66 on Thursday, hitting $29.84. The company had a trading volume of 3,399,409 shares, compared to its average volume of 2,156,578. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.93 and a quick ratio of 0.93. The company’s fifty day moving average price is $29.88 and its 200-day moving average price is $29.41. The company has a market capitalization of $5.64 billion, a PE ratio of 10.43, a PEG ratio of 1.00 and a beta of 0.80. Associated Banc has a 12-month low of $23.87 and a 12-month high of $32.46.

Associated Banc Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a $0.24 dividend. This represents a $0.96 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Tuesday, September 1st. Associated Banc’s payout ratio is presently 33.57%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on ASB shares. Truist Financial raised their price objective on shares of Associated Banc from $32.00 to $33.00 and gave the stock a “hold” rating in a research note on Tuesday, August 4th. Raymond James Financial boosted their target price on shares of Associated Banc from $31.00 to $35.00 and gave the company an “outperform” rating in a research note on Wednesday, July 1st. Barclays increased their price target on shares of Associated Banc from $34.00 to $35.00 and gave the stock an “overweight” rating in a report on Monday, October 5th. Wells Fargo & Company dropped their price target on shares of Associated Banc from $36.00 to $35.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. Finally, Piper Sandler reaffirmed a “neutral” rating and issued a $34.00 price objective on shares of Associated Banc in a report on Wednesday, August 26th. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $32.00.

Get Our Latest Research Report on ASB

Insider Buying and Selling at Associated Banc

In other news, EVP Randall J. Erickson sold 43,561 shares of the business’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $32.04, for a total transaction of $1,395,694.44. Following the completion of the sale, the executive vice president owned 56,091 shares of the company’s stock, valued at $1,797,155.64. The trade was a 43.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Gregory Warsek sold 16,300 shares of the company’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $32.01, for a total transaction of $521,763.00. Following the transaction, the executive vice president owned 13,809 shares of the company’s stock, valued at approximately $442,026.09. This trade represents a 54.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 78,833 shares of company stock valued at $2,502,103. Insiders own 0.71% of the company’s stock.

About Associated Banc

(Get Free Report)

Associated Banc-Corp is a regional bank holding company headquartered in Green Bay, Wisconsin. Through its principal subsidiary, Associated Bank, it provides banking and financial services to individuals, families, businesses and institutions.

Associated Bank offers commercial and corporate banking, retail banking, mortgage lending, consumer lending, treasury management, investment and wealth management, and institutional services. Its business banking activities include lending, deposit accounts, cash-management solutions and other services designed for small and middle-market companies.

The company primarily serves customers across Wisconsin, Illinois and Minnesota through its branch network and digital banking channels.

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