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

Associated Banc-Corp demonstrated a positive financial trajectory, evidenced by a 28 basis point increase in the Common Equity Tier 1 (CET1) ratio, reaching 10%, following its equity issuance in November. The company also experienced a sequential growth in total deposits by 3.3%, reaching $34.6 billion, primarily driven by an increase in interest-bearing demand deposits and money market balances. Further bolstering the positive outlook, core fee income rose 6.9% sequentially to $71.8 million, supported by a notable 109.2% increase in capital markets revenues, indicating enhanced operational performance and revenue diversification.

The analysis indicates a negative outlook for Associated Banc-Corp, primarily due to a projected 4% decline in 2025 earnings per share (EPS) driven by expected asset quality pressures linked to potential economic downturns. Additionally, the bank's ability to manage expense control, along with challenges in generating adequate loan and deposit growth in a difficult margin environment, pose further risks to its financial health. Although the bank's non-performing assets decreased slightly, the overall degradation in loan quality remains a significant concern that could adversely impact earnings and capital.