Investment Thesis
Associated Banc-Corp demonstrates solid profitability with strong revenue growth (+80.9% YoY) and respectable net margins (21.9%), supported by healthy free cash flow generation ($615.7M). However, concerning interest coverage ratio (0.1x) and moderate ROA (1.1%) suggest elevated leverage risk and asset efficiency challenges typical of regional banking stress, warranting cautious positioning.
ASBA Strengths
- Strong revenue growth of 80.9% year-over-year indicates expanding business activity
- Robust net profit margin of 21.9% demonstrates effective cost control and profitability
- Excellent free cash flow generation at $615.7M with 28.3% FCF margin provides operational strength
- Conservative debt-to-equity ratio of 0.20x shows manageable leverage levels
- Substantial asset base of $45.2B provides scale and diversification
ASBA Risks
- Critically low interest coverage ratio of 0.1x indicates severe debt service pressure and potential solvency concerns
- Modest return on assets (1.1%) suggests inefficient asset utilization for a regional bank
- Below-average ROE of 9.5% indicates suboptimal returns to shareholders relative to equity capital
- High insider activity with 87 Form 4 filings in 90 days raises governance and confidence concerns
- Diluted EPS surge of 284.7% appears disconnected from net income growth of 2.5%, suggesting significant share activity or accounting adjustments
Key Metrics to Watch
- Interest coverage ratio trend - critical indicator of debt sustainability
- Net interest margin and loan loss provisions - core banking profitability drivers
- Capital adequacy ratios and regulatory compliance status
- Asset quality metrics and non-performing loan trends
- ROA and ROE progression - efficiency and shareholder return improvement
ASBA Financial Metrics
ASBA Profitability Ratios
ASBA Balance Sheet & Liquidity
ASBA 5-Year Financial Trend
5-Year Trend Summary: ASSOCIATED BANC-CORP's revenue has shown modest growth of 0% over the 5-year period. The most recent EPS of $1.13 reflects profitable operations.
ASBA Growth Metrics (YoY)
ASBA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $320.8M | $81.2M | $0.53 |
| Q2 2024 | $321.8M | $81.2M | $0.56 |
| Q1 2024 | $322.8M | $81.2M | $0.52 |
| Q3 2023 | $320.8M | $74.3M | $0.53 |
| Q2 2023 | $291.6M | $74.3M | $0.56 |
| Q1 2023 | $262.2M | $74.3M | $0.47 |
| Q3 2022 | $265.8M | $74.3M | $0.56 |
| Q2 2022 | $253.0M | $74.3M | $0.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ASBA Capital Allocation
ASBA SEC Filings
Access official SEC EDGAR filings for ASSOCIATED BANC-CORP (CIK: 0000007789)