Core Viewpoint - Associated Banc-Corp (ASB) is currently viewed as a better value opportunity compared to Commerce Bancshares (CBSH) based on various valuation metrics [1][7]. Valuation Metrics - ASB has a forward P/E ratio of 10.08, while CBSH has a forward P/E of 16.27 [5]. - ASB's PEG ratio is 0.97, indicating a more favorable valuation relative to its expected earnings growth, compared to CBSH's PEG ratio of 2.10 [5]. - ASB's P/B ratio stands at 0.85, suggesting it is undervalued compared to CBSH's P/B ratio of 2.47 [6]. - Based on these metrics, ASB holds a Value grade of B, while CBSH has a Value grade of D [6]. Earnings Outlook - Both ASB and CBSH have a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3].

Capital Requirements and Regulatory Compliance - The Bank continues to exceed all capital requirements necessary to be deemed "well-capitalized" for regulatory purposes[76] - As of December 31, 2024, the Bank satisfied the capital requirements necessary to be deemed "well-capitalized"[85] - The Corporation's capital ratios were in excess of regulatory minimum requirements as of December 31, 2024[451] - CET1 capital increased to $3,396,836 thousand in 2024 from $3,074,938 thousand in 2023, reflecting a growth of 10.5%[454] - Total capital rose to $4,282,597 thousand in 2024, up from $3,997,205 thousand in 2023, marking a 7.2% increase[454] - CET1 capital ratio improved to 10.01% in 2024 compared to 9.39% in 2023, indicating a stronger capital position[454] Deposits and Funding - The estimated level of uninsured deposits was $15.5 billion as of December 31, 2024[89] - Total deposits rose to $34.6 billion, up $1.2 billion, or 4%, with significant increases in other time deposits by $832 million, or 29%, and savings by $298 million, or 6%[353] - Noninterest-bearing demand deposits decreased to $5.78 billion, representing 17% of total deposits, down from 18% in 2023[417] - Total AFS securities amounted to $4.61 billion with a weighted average yield of 5.31%[415] - Total HTM securities were $3.74 billion with a weighted average yield of 2.86%[415] - The corporation had $7.1 billion available for future funding from lines of credit with the Federal Reserve Bank and FHLB as of December 31, 2024[425] Loan Performance and Credit Quality - Total loans reached $29.8 billion, an increase of $552 million, or 2%, driven by a $924 million, or 9%, rise in commercial and business lending and a $554 million, or 25%, increase in auto finance[353] - The total nonperforming assets amounted to $144,164,000, a decrease from $160,421,000 in 2023, reflecting a reduction of approximately 10%[382] - The nonaccrual loans to total loans ratio improved to 0.41% in 2024 from 0.51% in 2023, indicating better asset quality management[382] - The allowance for credit losses on loans to nonaccrual loans ratio increased to 326.40% in 2024 from 258.98% in 2023, indicating a stronger reserve position[382] - The total loans charged off amounted to $76.415 million in 2024, up from $58.768 million in 2023, indicating a significant increase in credit losses[391] Income and Expenses - Fully tax-equivalent net interest income increased by $3 million, while net interest income rose by $8 million, or 1%, compared to 2023[339] - Noninterest income decreased significantly, with total noninterest loss income reported at $(9,407) thousand in 2024, a decline of $72,589 thousand from 2023[344] - Personnel costs increased by $19,601 thousand in 2024, reflecting the Corporation's ongoing growth strategy[347] - Total noninterest expense increased slightly by $4,715 thousand in 2024, totaling $818,397 thousand, with notable increases in personnel and technology expenses[347] Risk Management and Compliance - The Corporation's Environmental Risk Management Policy aims to integrate environmental sustainability into its risk management processes[129] - The proposed rule by FinCEN aims to strengthen AML/CFT programs, requiring periodic risk assessments and independent testing[114] - The company must notify regulators of cybersecurity incidents within 36 hours as per new federal banking agency rules[105] - The Corporation's credit risk management includes detailed underwriting procedures and ongoing borrower reviews to mitigate potential risks[361] Market and Economic Conditions - The Economic Growth Act raised the asset threshold for stress testing requirements from $10 billion to $250 billion[78] - The Dodd-Frank Act authorized a permanent increase in deposit insurance to $250,000 per depositor, per IDI[86] - The SEC finalized climate-related disclosure rules in March 2024, although these rules are currently stayed pending litigation[128] Financial Performance Metrics - Adjusted net income available to common equity was $118,253 thousand in 2024, down from $178,064 thousand in 2023, a decrease of 33.6%[457] - Return on average equity decreased to 2.86% in 2024 from 4.45% in 2023, reflecting challenges in profitability[457] - The efficiency ratio as defined by the Federal Reserve was 69.58% in 2024, slightly improved from 69.70% in 2023[457] - Tangible common equity to tangible assets ratio increased to 7.82% in 2024 from 7.11% in 2023, showing enhanced capital efficiency[457]

Core Viewpoint - Associated Banc-Corp (ASB) is currently positioned as a more attractive value investment compared to Commerce Bancshares (CBSH) based on various financial metrics and earnings outlook [1][3][7]. Valuation Metrics - ASB has a forward P/E ratio of 10.47, significantly lower than CBSH's forward P/E of 17.32, indicating ASB may be undervalued [5]. - The PEG ratio for ASB is 1.58, while CBSH's PEG ratio is 2.24, suggesting ASB has a better balance between its earnings growth expectations and its valuation [5]. - ASB's P/B ratio stands at 0.86, compared to CBSH's P/B of 2.60, further highlighting ASB's relative undervaluation [6]. Earnings Outlook - ASB is experiencing an improving earnings outlook, which is a key factor in its strong Zacks Rank of 1 (Strong Buy), while CBSH holds a Zacks Rank of 3 (Hold) [3][7].

Group 1 - Associated Banc-Corp (ASB) is part of the Finance sector, which includes 871 individual stocks and holds a Zacks Sector Rank of 1, indicating strong performance relative to peers [2] - The Zacks Rank system emphasizes earnings estimates and revisions, with ASB currently holding a Zacks Rank of 1 (Strong Buy), suggesting potential for outperformance in the near term [3] - The Zacks Consensus Estimate for ASB's full-year earnings has increased by 4.3% in the past quarter, indicating improved analyst sentiment and an enhanced earnings outlook [4] Group 2 - ASB has achieved a year-to-date return of approximately 7.2%, outperforming the average gain of 6.6% for stocks in the Finance group [4] - ASB belongs to the Banks - Midwest industry, which consists of 29 stocks and is currently ranked 10 in the Zacks Industry Rank, with the industry averaging a gain of 5% this year [6] - In comparison, Interactive Brokers Group, Inc. (IBKR), another stock in the Finance sector, has a year-to-date return of 29.2% and is part of the Financial - Investment Bank industry, which has gained 14.1% since the beginning of the year [5][7]

Company Overview - Associated Banc-Corp (ASB) is headquartered in Green Bay and operates in the Finance sector [3] - The stock has experienced a price change of 5.31% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.23 per share, resulting in a dividend yield of 3.66% [3] - This yield is higher than the Banks - Midwest industry's yield of 2.77% and the S&P 500's yield of 1.49% [3] - The annualized dividend of $0.92 has increased by 3.4% from the previous year [4] - Over the past five years, ASB has raised its dividend four times, averaging an annual increase of 5.57% [4] - The current payout ratio is 42%, indicating that the company pays out 42% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for ASB's earnings in 2025 is $2.41 per share, reflecting a year-over-year growth rate of 1.26% [5] Investment Appeal - ASB is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7] - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Performance - Victoria's Secret (VSCO) has seen a 17.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Associated BancCorp (ASB) has experienced a 6.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Okta (OKTA) has reported a 6.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Playa Hotels & Resorts (PLYA) has seen a 5.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Deckers Outdoor (DECK) has experienced a 5.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4]

GREEN BAY, Wis., Jan. 28, 2025 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) announced today that Management expects to meet with investors during the following events in the first quarter of 2025: BofA Securities 2025 Financial Services Conference in Miami, FL on February 11-12, 2025 2025 KBW Winter Financial Services Conference in Boca Raton, FL on February 12-14, 2025 2025 RBC Capital Markets Global Financial Institutions Conference in New York, NY on March 4-5, 2025Management also expects to present ...

Core Viewpoint - Associated Banc-Corp (ASB) reported fourth-quarter 2024 adjusted earnings of 57 cents per share, exceeding the Zacks Consensus Estimate of 55 cents and up from 53 cents in the prior-year quarter [1] Financial Performance - The increase in adjusted earnings was driven by a rise in net interest income (NII) and adjusted non-interest income, supported by a growth in deposit balances and lower provisions, although higher adjusted expenses posed a challenge [2] - Total adjusted revenues for the quarter were $345.8 million, a 5% increase year over year, surpassing the Zacks Consensus Estimate of $343.3 million [5] - For 2024, total adjusted revenues grew marginally to $1.33 billion, also exceeding the consensus estimate of $1.32 billion [5] Income and Expenses - NII was reported at $270.3 million, reflecting a 7% increase, with a net interest margin of 2.81%, up 12 basis points year over year [6] - Non-interest loss for the quarter was $206.8 million, compared to a loss of $131 million in the prior-year quarter; adjusted non-interest income, excluding certain losses, was $71.8 million, up 2% [7] - Non-interest expenses decreased by 6% to $224.3 million, but adjusted expenses rose marginally to $210 million [8] Loan and Deposit Trends - Total loans as of December 31, 2024, were $29.8 billion, down 1% from the prior quarter due to the sale of $723 million in residential mortgages [9] - Total deposits increased by 3% to $34.6 billion, exceeding the estimate of $34.5 billion [9] Credit Quality - The provision for credit losses was $17 million, down 19% from the prior-year quarter, with total non-performing assets decreasing by 10% to $144.2 million [10] - Net charge-offs were reported at $12.2 million, down 22% from the prior-year quarter [11] Capital Ratios - As of December 31, 2024, the Tier 1 risk-based capital ratio improved to 10.57%, up from 9.99% in the corresponding period of 2023 [12] Future Outlook - Management anticipates loan growth of 5-6% and total core customer deposits to rise by 4-5% in 2025, with NII projected to increase by 12-13% [13] - Total non-interest income is expected to remain stable or grow by 1%, while total non-interest expenses are likely to rise by 3-4% [14]

Strategic Initiatives - Associated Banc-Corp is advancing its growth strategy by combining targeted initiatives with legacy strengths, moving from a foundational phase (2021-2023) to an acceleration phase (2023-Present)[7] - The company is on track to add 26 commercial & business RMs[7] - The company executed a balance sheet repositioning in 4Q23[7] Recent Performance & Recognition - Associated Banc-Corp was named 1 for Retail Banking Customer Satisfaction in the Upper Midwest by J D Power[9] - The company experienced total checking household growth of 15% in 3Q (annualized)[9] - Commercial & business RMs expanded by 39% from 12/31/21 to 12/4/24[9] Balance Sheet Repositioning - The company sold approximately $13 billion of AFS securities and reinvested into approximately $15 billion of securities at higher rates[16] - The weighted average yield on securities sold was 187%, while the reinvested securities have a weighted average yield of 508%[16] - The company agreed to sell approximately $07 billion in low-yielding residential mortgage loans with a weighted average yield of approximately 299%[16] Pro Forma Impacts - The balance sheet repositioning is estimated to result in a one-time loss (after-tax) of $253 million in 4Q 2024[18] - The pro forma net interest margin is expected to improve by approximately 19bps to 297% compared to the 3Q 2024 actual of 278%[35] - The pro forma CET1 ratio is projected to increase by approximately 39bps to 1011% compared to the 3Q 2024 actual of 972%[35]

Financial Data and Key Metrics - The company raised over $300 million of new capital through a common stock issuance [2] - The company sold approximately $700 million in low-yielding mortgage loans and $1.3 billion worth of AFS securities as part of a balance sheet repositioning [2] - The company purchased $55 million in existing customer credit card balances [3] Business Line Data and Key Metrics - The company launched a new specialty deposit and payment solutions vertical to enhance its commercial capabilities [2] Market Data and Key Metrics - Unemployment rates in Wisconsin, Minnesota, and several other Midwestern states remain well below the national average of 4.1% [2] - Prime and super prime consumer borrowers have remained resilient, and commercial customers are cautiously optimistic about their growth prospects in 2025 [2] Company Strategy and Industry Competition - The company remains front-footed with the execution of its growth strategy, leveraging the stable economic environment in the Midwest [2] Management Commentary on Operating Environment and Future Outlook - The US economy, particularly in the Midwest, shows signs of strength and stability, which has supported the company's strategic initiatives [2] - Commercial customers are cautiously optimistic about growth prospects in 2025, reflecting a positive outlook for the company's business environment [2] Other Important Information - The company's Chief Financial Officer, Derek Meyer, and Chief Credit Officer, Pat Ahern, provided updates on margin, income statement, capital trends, and credit during the call [1] Q&A Session - No specific Q&A details were provided in the content