Core Insights - Associated Banc-Corp has opened a new branch in St. Louis, Missouri, marking its entry into the state and demonstrating its commitment to organic growth in the Midwest [1][2] Company Expansion - The new branch is located at Dellwood Crossing Shopping Center, covering approximately 6,000 square feet, and aims to capture new market opportunities [1] - The branch is part of a broader Missouri expansion strategy that began in 2023, which includes hiring commercial and industrial relationship managers and private banking staff [2] - Currently, Associated has 20 employees in Missouri, with the new branch creating seven additional jobs [2] Community Engagement - The Dellwood branch will feature a Community Advocacy Center and will employ a community accountability officer and an affordable lending officer [2] - The branch will also provide meeting space for over 30 people and support local community initiatives through various educational programs [6] Market Presence - Associated Bank has been present in the Southern Illinois market since 1997 and has operated a loan production office in Missouri since 2006 [3] - The St. Louis market is identified as a natural extension of Associated's footprint, with the city representing the bank's sixth largest metropolitan area, accounting for 3.6% of total deposits [3] Company Overview - Associated Banc-Corp has total assets of $43 billion and is the largest bank holding company based in Wisconsin, serving over 100 communities across multiple states [4]

Market Overview - U.S. equities experienced a decline, with the Dow Jones Industrial Average dropping 320 points due to escalating trade tensions and the announcement of 104% tariffs on Chinese imports [1] - The S&P 500 and Nasdaq Composite indices also fell, decreasing by 1.6% and 2.2% respectively [1] Economic Implications - Analysts speculate that the new tariffs could exacerbate economic challenges, raising concerns about a potential recession and influencing future Federal Reserve interest rate decisions [2] - In this context, value stocks may become attractive as they typically trade below intrinsic value, providing a margin of safety during market volatility [2] Valuation Metrics - The Price to Cash Flow (P/CF) ratio is highlighted as an effective metric for evaluating value stocks, as it reflects a company's cash generation ability relative to its market price [3][4] - A lower P/CF ratio indicates better value, while cash flow is considered more reliable than earnings, which can be influenced by accounting practices [5] Investment Strategy - A comprehensive investment strategy should include multiple valuation metrics such as price-to-book, price-to-earnings, and price-to-sales ratios, along with a favorable Zacks Rank and Value Score [7] - Parameters for selecting true-value stocks include P/CF less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume exceeding 100,000 [8] Company Analysis - StoneCo Ltd. (STNE) has a Zacks Rank of 1, with a trailing four-quarter earnings surprise of 5.8% and a Value Score of B, despite a 36.9% decline in shares over the past year [11][12] - Associated Banc-Corp (ASB) holds a Zacks Rank of 2, with expected sales growth of 9.9% and EPS growth of 2.1% for the current financial year, while shares have decreased by 8.1% [12][13] - EnerSys (ENS) also has a Zacks Rank of 2, with projected sales growth of 1% and EPS growth of 19.8%, and a Value Score of A, despite a 13.4% drop in shares [14] - General Motors (GM) carries a Zacks Rank of 2, with an expected EPS growth of 8.6% and a trailing earnings surprise of 15.8%, while shares have dipped by 3.3% [15]

Core Viewpoint - Associated Banc-Corp is set to release its first quarter 2025 financial results on April 24, 2025, after market close, and will host a conference call for investors and analysts at 4:00 p.m. Central Time on the same day [1]. Group 1: Financial Results Announcement - The company will announce its first quarter 2025 financial results on April 24, 2025, after market close [1]. - A conference call for investors and analysts is scheduled for 4:00 p.m. Central Time on the same day [1]. Group 2: Accessing the Conference Call - Interested parties can access the live webcast through the Investor Relations section of the company's website [2]. - Participants can also dial into the call using domestic and international numbers provided [2]. - Financial tables and a slide presentation will be available on the company's website prior to the call, with an audio archive expected shortly after the call concludes [2]. Group 3: Company Overview - Associated Banc-Corp has total assets of $43 billion and is the largest bank holding company based in Wisconsin [3]. - The company operates nearly 200 banking locations serving over 100 communities across Wisconsin, Illinois, and Minnesota, with additional loan production offices in several other states [3].

Core Viewpoint - Associated Banc-Corp (ASB) has shown a downtrend recently, losing 6.9% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which could lead to a bullish trend for ASB [2][4]. - The hammer pattern forms when there is a small candle body with a long lower wick, suggesting that despite a downtrend, buyers are starting to enter the market [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - Recent upward revisions in earnings estimates for ASB serve as a bullish indicator, correlating strongly with near-term stock price movements [6]. - Over the last 30 days, the consensus EPS estimate for ASB has increased by 1.9%, indicating that analysts expect better earnings than previously predicted [7]. - ASB holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [8].

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]