A regional Ohio-based financial institution offering comprehensive commercial and consumer banking solutions with a strong focus on community engagement and wealth management services.
ASB offers attractive stability as a regional bank with a conservative risk profile and strong deposit franchise that insulates it from volatile funding markets. The substantial goodwill of $1.10B suggests successful historical acquisitions, while positive cash flow from operations of $442.7M supports dividend sustainability and capital return to shareholders.
Significant non-cash adjustments totaling -$1.13B and a retained earnings deficit of $2.95B raise concerns about long-term capital adequacy and historical earnings quality. The heavy interest expense of $918.5M compresses net interest margins, making the stock vulnerable to further rate hikes or widening credit spreads in the current economic climate.
Associated Banc-Corp (ASB) operates as a diversified bank holding company providing commercial banking, consumer lending, wealth management, and insurance services primarily across Ohio and West Virginia. The firm generates revenue through traditional deposit-taking, loan origination, and fee-based financial advisory products tailored to local business and retail needs.
The company reported $183.0M in net profit for the latest period, down from $366.1M in 2022, while revenue declined slightly to $1.10B from $1.24B the prior year. Operating expenses of $896.7M against $1.10B in revenue indicate tight margin management, yet operating profit remains healthy at $206.1M despite high interest costs.
The regional banking industry in Ohio faces margin pressure from rising funding costs but benefits from stable loan demand in a recovering local economy. Competitors are consolidating, creating opportunities for well-capitalized institutions like ASB to capture market share through superior customer service and digital adoption.
| Metric | 2022 | 2023 |
|---|---|---|
| Revenue | $1.24B | $1.10B |
| Cost of Revenue | $0 | $0 |
| Gross Profit | $1.24B | $1.10B |
| Operating Expenses | $780.1M | $896.7M |
| Operating Income | $459.6M | $206.1M |
| Depreciation | $45.1M | $47.0M |
| Amortization | $8.8M | $8.8M |
| Non-Operating Income | $0 | $0 |
| Interest Expense | $187.9M | $918.5M |
| Pre-Tax Income | $459.6M | $206.1M |
| Income Tax | $93.5M | $23.1M |
| Continuing Ops | $366.1M | $183.0M |
| Discontinued Ops | $0 | $1.0K |
| Net Income | $366.1M | $183.0M |
| Minority Interest | $0 | $0 |
| Net to Common | $366.1M | $183.0M |
| Metric | 2022 | 2023 |
|---|---|---|
| PP&E (Net) | $376.9M | $373.0M |
| Intangibles | $49.3M | $40.5M |
| Goodwill | $1.10B | $1.10B |
| Total Assets | $39.41B | $41.02B |
| Total Liabilities | $35.39B | $36.84B |
| Shareholders' Equity | $4.02B | $4.17B |
| Retained Earnings | $2.90B | $2.95B |
| AOCI | $-272.8M | $-171.1M |
| Treasury Stock | $525.2M | $512.4M |
| Total L&E | $39.41B | $41.02B |
| Metric | 2022 | 2023 |
|---|---|---|
| Net Income (CFO) | $366.1M | $183.0M |
| Non-Cash Adjustments | $-4.12B | $-1.13B |
| Working Capital Changes | $4.60B | $1.39B |
| Cash from Operations | $846.6M | $442.7M |
| Cash from Investing | $-5.25B | $-1.44B |
| Debt Issuances | — | $292.7M |
| Debt Repayments | $0 | $0 |
| Dividends Paid | $123.1M | $129.5M |
| Cash from Financing | $4.00B | $1.30B |
| FX Effect | $0 | $0 |
| Net Change in Cash | $-404.1M | $302.4M |
| Beginning Cash | $1.03B | $621.5M |
| Ending Cash | $621.5M | $923.8M |
Commercial Banking serving small to mid-sized businesses with customized lending and treasury solutions; Consumer Banking providing checking, savings, auto loans, and mortgage products to individual residents; Wealth Management and Insurance delivering investment advisory services and life insurance policies through its subsidiary, Associated Bank Wealth Management; Trust Services managing estates and corporate trusts for high-net-worth individuals.
Elevated interest rate exposure reflected by significant $918.5M in interest expense affecting net interest margins; Regulatory compliance costs and potential capital requirements impacting profitability in a tightening banking environment; Regional economic downturns in Ohio and West Virginia that could increase loan delinquencies and credit losses.
Deep local market penetration in Ohio and West Virginia fostering strong customer loyalty and cross-selling opportunities; Robust retail deposit base providing low-cost funding compared to regional peers reliant on wholesale markets; Diversified revenue streams combining traditional lending with growing fee-based wealth management services.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.