Associated Banc-Corp (ASB) Stock Forecast & Price Target

Associated Banc-Corp has demonstrated notable financial health, marked by an 8.5% improvement in non-performing assets (NPAs) to 0.48% of loans and other real estate owned (OREO), alongside lower net charge-offs (NCOs) than previously forecasted. The company’s organic growth initiatives are gaining traction, which is expected to enhance returns and operating leverage in the latter half of 2025 and into 2026, supported by strong loan momentum and a favorable balance sheet mix. Furthermore, the anticipated 5-6% growth in noninterest income, bolstered by robust capital markets performance, highlights the bank's stability and capacity for expansion compared to its peers.

Associated Banc-Corp faces a challenging financial outlook due to anticipated increases in noninterest expenses that are expected to outpace revenue growth in 2026, which raises concerns about profitability. Additionally, the bank's average total deposits have contracted by 7.2%, suggesting weakening customer confidence and potential liquidity issues, offset slightly by a modest 1% increase in noninterest-bearing deposits. The bank is also exposed to significant risks, including potential net interest margin compression, increased credit costs, and reduced loan demand, which could further negatively impact earnings and valuations.