| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 22.60 | -9 |
| Intrinsic value (DCF) | 9.62 | -61 |
| Graham-Dodd Method | 13.35 | -47 |
| Graham Formula | 1.47 | -94 |
Associated Banc-Corp (NYSE: ASBA) is a leading regional bank holding company serving individuals and businesses across Wisconsin, Illinois, and Minnesota. Founded in 1861 and headquartered in Green Bay, Wisconsin, the company operates through three key segments: Corporate and Commercial Specialty, Community, Consumer, and Business, and Risk Management and Shared Services. ASBA provides a comprehensive suite of banking and financial services, including commercial and retail lending, deposit solutions, wealth management, and treasury services. With 215 banking branches as of December 2021, the company has a strong regional presence in the Upper Midwest. ASBA's diversified business model caters to both commercial clients—offering specialized lending, cash management, and hedging solutions—and retail customers through mortgages, personal loans, and digital banking services. As a mid-cap regional bank with a market capitalization of approximately $3.8 billion, ASBA plays a significant role in the Financial Services sector, particularly in community-focused banking. Its long operating history and regional expertise position it as a stable player in the competitive Banks - Regional industry.
Associated Banc-Corp presents a mixed investment profile with both attractive qualities and notable risks. On the positive side, the company benefits from its established regional footprint, diversified revenue streams across commercial and retail banking, and a conservative beta of 0.61 suggesting lower volatility than the broader market. The bank maintains solid liquidity with nearly $1 billion in cash and equivalents, and its dividend yield (based on a $1.66 annual payout) may appeal to income-focused investors. However, concerns include relatively thin net margins (approximately 12% of revenue), significant total debt of $3.16 billion, and exposure to regional economic conditions in its core Midwest markets. The bank's performance will be closely tied to interest rate trends and commercial real estate dynamics in its operating regions. Investors should weigh ASBA's stable regional banking model against the challenges facing mid-sized banks in a competitive, rate-sensitive environment.
Associated Banc-Corp competes in the crowded Upper Midwest regional banking sector, where its competitive advantage stems from three key factors: deep regional expertise, relationship-based commercial banking, and a diversified product set. The bank's 160+ year history in Wisconsin provides strong brand recognition and local market knowledge that national banks cannot easily replicate. Its Corporate and Commercial Specialty segment delivers tailored solutions for mid-sized businesses, differentiating through industry-specific lending expertise and treasury management services. However, ASBA faces intense competition from both larger national banks with greater scale advantages and smaller community banks with hyper-local focus. The bank's middle-market positioning—between mega-banks and tiny community institutions—requires careful execution to avoid being squeezed on both sides. Digitally, ASBA must continue investing to match the online/mobile capabilities of both tech-savvy national players and neobanks. Geographically, its concentration in Wisconsin (approximately 60% of branches) creates both stability and concentration risk. The bank's risk management capabilities, evidenced by its dedicated segment, help navigate credit cycles but may limit growth during expansionary periods compared to more aggressive peers. Going forward, ASBA's ability to leverage its commercial banking strengths while improving retail banking efficiency will determine its competitive trajectory.