Associated Banc-Corp plans 11.5 million share offering

GREEN BAY, Wis. - Associated Banc-Corp (NYSE: NYSE:), the largest bank holding company based in Wisconsin, disclosed its intention to conduct a public offering of 11.5 million shares of its common stock. The company also plans to provide underwriters a 30-day option to purchase up to an additional 1.725 million shares.

The financial institution aims to utilize the net proceeds for general corporate purposes, which include supporting its organic growth and capital generation. Potential uses for the funds also encompass investments in Associated Bank, N.A., and the exploration of balance sheet optimization strategies.

BofA Securities and J.P. Morgan have been appointed as the joint book-running managers for the offering. The shares will be available through a shelf registration statement and a preliminary prospectus supplement filed with the Securities and Exchange Commission (SEC), followed by a final prospectus supplement.

Associated Banc-Corp, with total assets of $42 billion, operates nearly 200 banking locations across Wisconsin, Illinois, and Minnesota, and maintains loan production offices in several other states.

The offering is subject to market and other conditions, and there will be no sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. The offering will be made solely by means of a written prospectus.

This announcement is based on a press release statement by Associated Banc-Corp and does not constitute an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, Associated Banc-Corp has reported noteworthy developments. The company has announced a rise in its quarterly cash dividend from $0.22 to $0.23 per common share. Additionally, regular quarterly cash dividends have been declared on its preferred stocks, with payments due to be made to shareholders in mid-December.

In its third-quarter earnings for 2024, Associated Banc-Corp reported a diluted earnings per share (EPS) of $0.56. This was accompanied by a 2% increase in core customer deposits, contributing to a reduction in wholesale funding. The company also observed a 1% rise in total loans, primarily in the commercial and auto sectors, and a $6 million increase in net interest income to $253 million.

Associated Banc-Corp has added 16 commercial relationship managers with plans to add 26 more by early 2025. The company projects cumulative commercial loan growth of $750 million and deposit growth of $2.5 billion by the end of 2025. A new specialty deposit and payment solutions vertical has also been launched, demonstrating the company's strategic planning in light of recent economic challenges. These recent developments underscore the resilience and forward-thinking approach of Associated Banc-Corp.

InvestingPro Insights

Associated Banc-Corp's (NYSE: ASB) decision to conduct a public offering of 11.5 million shares comes at a time when the company is showing strong financial performance. According to InvestingPro data, ASB has a market capitalization of $3.96 billion and has demonstrated impressive returns, with a one-year price total return of 58.65% as of the most recent data.

The bank's commitment to shareholder value is evident in its dividend history. An InvestingPro Tip highlights that Associated Banc-Corp has maintained dividend payments for 50 consecutive years, showcasing its financial stability and commitment to returning value to shareholders. This long-standing dividend policy aligns well with the company's current focus on organic growth and capital generation through the planned stock offering.

Moreover, ASB's financial health appears robust, with a price-to-book ratio of 0.94, indicating that the stock may be undervalued relative to its book value. This could potentially make the new share offering attractive to investors looking for value in the banking sector.

It's worth noting that InvestingPro has identified additional tips that could provide further insights into ASB's financial position and outlook. Investors interested in a more comprehensive analysis can access 9 more tips on the InvestingPro platform.

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