Associated Banc-Corp's Q2 EPS rises

Overview

• Associated Banc-Corp Q2 net income of $108 mln, EPS of $0.65

• Record net interest income of $300 mln, up 17% yr/yr

• Total loans rose 3% yr/yr to $30.6 bln, deposits up 4% yr/yr

Outlook

• Company expects 2025 loan growth of 5% to 6%

• Associated Banc-Corp forecasts 2025 deposit growth of 1% to 3%

• Company anticipates 2025 net interest income growth of 14% to 15%

• Associated Banc-Corp expects 2025 noninterest income growth of 1% to 2%

Result Drivers

• NET INTEREST INCOME - Record net interest income driven by strategic actions, including C&I loan growth and margin expansion

• LOAN GROWTH - Significant growth in commercial and industrial loans contributed to earnings

• CHECKING HOUSEHOLD GROWTH - Best checking household growth in a decade supported results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Associated Banc-Corp is $27.00, about 4.1% above its July 23 closing price of $25.90

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn2JFsQFa