Updated 4/13/25
Associated Banc-Corp (ASB), a regional bank headquartered in Wisconsin, operates over 200 branches across the Midwest and has steadily built a presence in commercial, retail, and wealth management services. Under the leadership of CEO Andrew Harmening, the company has leaned into strategic realignment, digital transformation, and a consistent dividend policy. ASB currently trades around $20, well below its 52-week high of $28.18, and offers a dividend yield near 4.8%. While recent results included a net loss due to one-time restructuring charges, adjusted earnings exceeded expectations, and full-year deposits and loans both grew. With a strong cash position and seasoned executive team, the bank remains focused on navigating margin pressures and maintaining shareholder returns.
Recent Events
Over the past year, ASB’s stock performance hasn’t wowed the market. Shares are down a little more than 5% year-over-year, while the S&P 500 has moved higher by nearly 6%. That underperformance isn’t entirely surprising given the pressure the banking sector has faced—from tighter credit conditions to ongoing shifts in interest rates.
More notably, the company’s most recent quarterly report showed a steep drop in revenue—down over 54% compared to the same quarter a year ago. The operating margin figure was deeply negative, something you don’t often see in a traditional bank. On the bright side, ASB did manage to stay profitable with over $110 million in net income over the trailing twelve months and an EPS of $0.72.
Cash reserves are solid, sitting just over $1 billion. That translates to a cash-per-share number of $6.41. While the bank does carry $3.2 billion in debt, it has a book value per share of $26.92—well above the current stock price, suggesting the market is undervaluing the company based on its assets. This sort of discount to book can either mean the market is overly cautious, or there’s more trouble under the surface. Time will tell, but for now, it’s a key piece of the valuation story.
💰 Key Dividend Metrics
📈 Forward Yield: 4.78%
📅 Ex-Dividend Date: March 3, 2025
💸 Forward Annual Dividend Rate: $0.92
🔁 5-Year Average Yield: 4.08%
📊 Payout Ratio: 123.61%
💥 Dividend Growth (Trailing Annual): $0.89 → $0.92
📉 Share Price vs Book: Price/Book of 0.72
⚠️ Earnings Coverage: EPS $0.72 vs Dividend $0.92
Dividend Overview
The current yield is one of the first things that jumps out. At 4.78%, it stands out even among regional banks and definitely beats the average yield from many blue-chip names. It’s also higher than ASB’s own five-year average of just over 4%, which makes it appealing from a purely income-generating perspective.
But investors shouldn’t just focus on yield alone. The payout ratio is over 123%, meaning the company is currently distributing more in dividends than it’s earning in profits. That’s a warning sign. It doesn’t necessarily mean a dividend cut is around the corner, but it does put pressure on the bank to either boost earnings or rethink its payout levels if current trends continue.
It’s also worth noting that the dividend has inched up in recent years. The most recent raise took the annual payout from $0.89 to $0.92. That’s not a big move, but it signals a management team still committed to rewarding shareholders even in a challenging environment.
With the stock trading well below book value, management might be less inclined to use capital for buybacks, leaving the dividend as the primary way to return value to shareholders. That can actually work in favor of those focused on income, as there’s less dilution of returns from competing capital allocation decisions.
Dividend Growth and Safety
ASB doesn’t exactly have a reputation for fast-paced dividend growth, and that’s perfectly fine for many income-focused investors. What the bank aims for is consistency—small, steady increases when the financials allow for it, and holding the line when times get tight.
But the big question right now revolves around dividend safety. The payout ratio tells part of the story, and it isn’t comforting. With earnings per share at $0.72 and a dividend that exceeds that, there’s little room for error unless earnings rebound or cash flow steps up.
Fortunately, the company is sitting on a decent pile of cash and has a history of stable operations. Operating cash flow came in at over $580 million for the trailing twelve months, which provides a cushion. The dividend doesn’t rely solely on net income—cash flow matters too, and that gives ASB some breathing room.
Institutional ownership is also high, close to 89% of the float. That typically means more accountability when it comes to capital return decisions, including dividend policy. These large holders aren’t likely to tolerate reckless behavior, and their presence often supports more disciplined management.
ASB’s relatively low beta of 0.78 means the stock tends to be less volatile than the broader market. That helps cushion the ride for income investors and is one more reason why many retirees and long-term holders keep this one on their radar. While the current environment is anything but calm for banks, ASB still shows signs of underlying strength that dividend-focused investors would be smart to monitor closely.
Cash Flow Statement
Associated Banc-Corp generated $580 million in operating cash flow over the trailing twelve months, showing an improvement over 2023 and a return to more stable footing after the volatility seen in 2022. Free cash flow came in at $535 million, indicating that the business remains efficient in converting its core banking operations into real cash, even after capital expenditures. This is particularly important for dividend-focused investors, as it suggests the bank still has flexibility to maintain payouts despite earnings pressure.
Investing cash flow was negative $2.22 billion, reflecting continued deployment of capital—likely into securities and loan growth—common for banks in expansion or repositioning mode. Financing cash flow was positive $1.73 billion, driven by new capital stock issuance and debt inflows, though partially offset by significant debt repayments. Interest paid rose substantially to over $1 billion, a reflection of the current rate environment and its impact on borrowing costs. ASB’s end-of-period cash stood at $1.02 billion, maintaining a healthy buffer. These figures paint a picture of a bank actively managing liquidity while still prioritizing shareholder returns.
Analyst Ratings
📊 Associated Banc-Corp (ASB) has recently experienced a blend of analyst sentiment, with the general tone remaining cautious. The consensus among analysts currently sits at a “Hold,” reflecting tempered expectations amid industry-wide pressures. The average 12-month price target is hovering around $26.70, offering some room for upside compared to where shares are trading now.
⬆️ On April 9, 2025, Wells Fargo upgraded ASB to an “Overweight” rating. The firm pointed to stronger capital ratios and a more disciplined approach to balance sheet management as reasons for the improved outlook. There’s a sense that the bank’s fundamentals are starting to firm up after a rocky period, and that gives some analysts a reason to be more constructive.
🔄 At the same time, others are holding the line. Barclays reiterated its “Equal Weight” rating but nudged the price target down from $28 to $25. Their analysts highlighted ongoing pressure on net interest margins as a headwind for profitability. Similarly, Robert W. Baird revised its outlook from “Outperform” to “Neutral” and lowered its price target to $26, citing concerns over the pace of earnings recovery.
📉 Overall, analysts are watching closely to see if ASB can weather the tougher lending environment and maintain dividend stability without sacrificing growth potential.
Earning Report Summary
Associated Banc-Corp’s latest earnings came with a few curveballs but also some encouraging signs once you dig past the surface. The headline number wasn’t pretty—a net loss of $164 million, or $1.03 per share. That kind of result usually raises eyebrows, but there’s more context here than meets the eye.
One-Time Hits Skew the Picture
Most of the loss stemmed from one-off moves tied to restructuring their balance sheet. These included a hefty $130 million loss from selling off a portion of their mortgage portfolio, a $148 million hit from selling investments, and another $14 million related to prepaying some borrowings. So yes, the quarter looked rough on paper, but these weren’t ongoing operational issues. Strip those out, and you get a clearer picture.
On an adjusted basis, earnings were $91 million, or $0.57 per share—actually better than what analysts were expecting. That shows the underlying business is holding up, even as the company makes strategic shifts.
Solid Year Beneath the Noise
Looking at the full year, ASB earned $112 million, or $0.72 per share. Once again, if you take out the nonrecurring items, the adjusted earnings were much stronger at $367 million, or $2.38 per share. That kind of performance paints a more stable story for the year overall.
Deposits and loans both moved higher, which is a good sign in any banking environment. Deposits rose by $1.2 billion, and loans were up $552 million from the year before. Net interest income came in at $1 billion, and they pulled in $269 million in noninterest income, adjusted for the unusual stuff.
The bank also set aside $85 million for credit losses, with actual loan charge-offs sitting at a manageable 0.23% of average loans. That tells you they’re being careful without seeing a spike in real credit issues.
So while the top-line numbers might look a bit alarming at first glance, the adjusted figures and operational details tell a steadier, more reassuring story. Associated is clearly navigating a transition, but the fundamentals suggest they’re staying on track where it counts.
Chart Analysis
Price Movement and Trend
ASB’s one-year price chart tells a story of a stock that saw steady growth through much of last year, peaking in late November before beginning a gradual slide. The price crossed above both the 50-day and 200-day moving averages during its climb, which tends to signal strength, but the momentum didn’t hold. The recent sharp drop pushed the stock well below both key averages, which now act as resistance levels rather than support.
The 50-day moving average (red line) has clearly rolled over and is now sloping downward, reflecting shorter-term weakness. Meanwhile, the 200-day average (blue line) is flattening out but still shows the remnants of last year’s uptrend. The gap between the current price and these two moving averages is significant, and historically, that kind of separation can invite either a technical bounce or continued selling, depending on broader market sentiment and company-specific catalysts.
Volume Activity
Looking at the volume bars, there’s been a noticeable spike in trading activity during price drops, especially in the last few weeks. That usually signals heavy selling pressure, possibly from institutions or large holders exiting positions. The absence of high volume during price recoveries suggests that buying interest hasn’t been strong enough to reverse the trend just yet.
RSI Indicator
The Relative Strength Index (RSI) dipped below 30 multiple times recently, indicating the stock is firmly in oversold territory. While that doesn’t guarantee a reversal, it does mean the selling has likely been overdone in the short term. There were several previous RSI dips near this level that led to short rebounds, such as in early June and again in late October, so it’s something to keep in mind when watching for potential shifts in sentiment.
General Takeaway
ASB appears to be in the middle of a correction following a strong run-up in the second half of last year. Price has broken below long-term support levels, and the lack of convincing buying volume so far shows that caution is still the prevailing mood. However, with the RSI deep in oversold territory and a history of moderate rebounds after similar dips, the setup here may be approaching a reset point, particularly if fundamentals begin to stabilize or improve.
Management Team
Associated Banc-Corp is led by Andrew Harmening, who stepped into the CEO role in 2021. With a long background in retail and commercial banking, his approach has focused on modernizing the company’s operations while holding firm to its Midwestern roots. His prior leadership roles at larger institutions have helped bring a sharper focus to efficiency and customer experience.
Supporting him is a team that brings a healthy balance of stability and experience. Derek Meyer serves as Chief Financial Officer and brings financial discipline to the table, especially important as the company works through tighter margins and revenue pressures. The credit side is overseen by Patrick Ahern, while Angie DeWitt heads up human resources and has played a visible role in reshaping the company’s internal culture. A new addition in early 2025, Heath Sorenson, was brought in to run Associated Trust Company. His decades in wealth management are expected to help expand that business line and better integrate it with the bank’s broader offerings.
Valuation and Stock Performance
As of mid-April 2025, ASB shares were trading near $20, down from highs around $28 over the past year. The stock has experienced a steady decline since late last year, driven by broader sector concerns and some company-specific headwinds. The 52-week range tells the story of volatility, with the lower end just above $18.
Looking at valuation, the stock has a trailing price-to-earnings ratio of 26.7, which looks high at face value due to recent earnings hits. But the forward P/E drops significantly to just under 8, suggesting analysts are looking for a rebound in profits over the next year. The price-to-book ratio sits at just 0.72, well below 1, which often flags a potentially undervalued asset-based company, especially in banking.
The dividend remains a key piece of the puzzle. ASB is yielding nearly 4.8%, making it one of the more generous payers in its category. But with a payout ratio above 120%, there’s a level of strain that shouldn’t be ignored. Whether the company can keep that yield intact will depend heavily on operational improvement going forward.
Risks and Considerations
There are several factors that could affect the road ahead for ASB. The most obvious is the high payout ratio, which means the bank is paying out more in dividends than it’s bringing in as profit. This isn’t sustainable over the long haul unless earnings catch up. Right now, margins are tight, and revenue has taken a noticeable hit.
Another challenge is the broader environment. Interest rate volatility, tighter lending standards, and the competitive push from digital-first banks all make it harder for a regional operator to expand profitably. The recent sharp drop in revenue, combined with soft returns on both assets and equity, speaks to the uphill battle the company may face in improving its core business metrics.
It’s also worth considering the regulatory backdrop. Compliance costs and capital requirements tend to be more burdensome for banks that can’t spread those costs across massive national operations. Associated still benefits from being a community-focused brand, but it’s not immune from rising expenses tied to oversight and reporting.
Final Thoughts
Associated Banc-Corp isn’t the kind of stock that demands attention, but it has carved out a role for investors seeking steady income with some degree of long-term recovery potential. The dividend remains attractive, and the discount to book value hints at hidden value if the company can execute on its turnaround strategy.
Still, caution is warranted. Earnings need to stabilize, and the bank must find ways to grow its top line in a challenging rate and competitive environment. Investors should keep a close watch on how leadership navigates these waters, especially given the new additions to the team and the shift in focus toward operational efficiency and targeted expansion. How well ASB can convert its solid foundation into stronger financial returns will ultimately decide whether the stock stays in the shadows or begins to shine again.