Associated Banc-Corp (ASB) Stock Forecast & Price Target

Associated Banc-Corp demonstrates a strong financial position, with a CET1 ratio increasing by 28 basis points to 10.0%, supported by a successful equity issuance that generated approximately $330 million in net proceeds. The bank's total deposits rose by 3.3% sequentially to $34.6 billion, fueled by significant increases in interest-bearing demand and money market accounts, while core fee income surged by 6.9% to $71.8 million, highlighting robust performance in capital markets revenues. Additionally, a margin expansion of 3 basis points to 2.81% and a 3% rise in net interest income to $270.3 million reflect the bank's improving profitability and operational efficiency.

The financial outlook for Associated Banc-Corp indicates a potential decline in earnings, with a forecasted reduction of approximately 4% in 2025 EPS, raising concerns about its impact on stock performance in the near term. Key risks include increased pressure on asset quality due to possible economic downturns, which could adversely affect earnings and capital, as well as challenges in managing margins, controlling expenses, and achieving loan and deposit growth. Additionally, despite a slight reduction in non-performing assets and marginal sequential growth in core loan balances when adjusted for pending sales, the overall decrease in total loans and declining yields on earning assets further contribute to a negative outlook for the company’s stock.