Street Calls of the Week
GREEN BAY, Wis. - Associated Banc-Corp (NYSE:ASB), the holding company for Associated Bank, N.A., announced Wednesday it will decrease its prime rate from 7.50% to 7.25%, effective Thursday, September 18, 2025. The bank, which InvestingPro data shows has maintained dividend payments for 51 consecutive years, continues to demonstrate financial stability with a Fair Value indicating slight overvaluation at current prices.
The quarter-point reduction represents the Wisconsin-based bank’s response to changing market conditions. Associated Banc-Corp is the largest bank holding company headquartered in Wisconsin with total assets of $44 billion. The company’s stock has shown strong momentum with a 23.6% return over the past year, while maintaining a healthy 3.6% dividend yield.
The prime rate is a benchmark used by banks to set rates on various consumer and commercial loans, including credit cards, home equity lines of credit, and small business loans. Changes to the prime rate typically follow adjustments to the federal funds rate by the Federal Reserve.
Associated Bank operates nearly 200 banking locations across Wisconsin, Illinois, Minnesota and Missouri, along with loan production offices in six additional states.
This announcement was made in a press release statement issued by the company.
In other recent news, Associated Banc-Corp reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $0.65, exceeding the forecasted $0.62, marking a 4.84% earnings surprise. Additionally, Associated Banc-Corp reported revenues of $366.98 million, which also surpassed the anticipated $362.32 million. These results highlight the company’s ability to outperform market projections in both earnings and revenue. In related developments, Keefe, Bruyette & Woods reiterated its Market Perform rating for Associated Banc-Corp with a price target of $28.00. The firm noted the company’s plans to drive continued positive operating leverage in the latter half of 2025. They also highlighted the company’s focus on achieving sustainable organic growth following the execution of its strategic plan. These recent developments underscore the company’s current financial performance and strategic direction.
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