GREEN BAY, Wis. - Associated Banc-Corp (NYSE:ASB), the parent company of Associated Bank, N.A., has reduced its prime lending rate to 7.50%, a change that will take effect tomorrow. This move marks a shift from the previous rate of 7.75%. The bank, which currently trades near its InvestingPro Fair Value, has demonstrated strong financial performance with a 25.6% price return over the past six months.
The adjustment in the prime rate, which is the rate that banks charge their most creditworthy customers, is a significant financial indicator. Associated Banc-Corp, with $42 billion in total assets and a market capitalization of $3.9 billion, is the largest bank holding company headquartered in Wisconsin. It operates a network of nearly 200 banking locations, serving over 100 communities across Wisconsin, Illinois, and Minnesota, and maintains loan production offices in several other states. According to InvestingPro, the company has maintained dividend payments for 50 consecutive years, with a current dividend yield of 3.7%.
The prime rate is a benchmark for various types of loans, including mortgages, car loans, and credit cards. Changes in the prime rate can influence borrowing costs for both consumers and businesses. The decision to lower the rate is based on various economic factors and market conditions, which the bank evaluates regularly.
As a leading Midwest banking franchise, Associated Banc-Corp's decision to modify its prime rate is followed closely by market analysts and consumers alike. The bank's financial health and strategic moves are of particular interest to investors and customers in the regions it serves. InvestingPro analysis reveals additional insights about the company's performance, with analysts predicting profitability this year despite three analysts revising earnings downward for the upcoming period. Discover more detailed analysis and 8 additional ProTips with an InvestingPro subscription.
The announcement of the prime rate reduction is based on a press release statement from Associated Banc-Corp. The company emphasized its position as a key financial institution in the Midwest and its commitment to meeting the financial needs of its customers.
Associated Banc-Corp is listed on the New York Stock Exchange under the ticker symbol ASB. The company is recognized for its comprehensive range of financial products and services and its status as an Equal Housing Lender, Equal Opportunity (SO:FTCE11B) Lender, and Member FDIC. Additional information about Associated Banc-Corp can be found on its website.
In other recent news, Associated Banc-Corp has made significant strides in its financial strategy with a balance sheet restructuring, the addition of two new directors to its board, and a public offering of 11.5 million shares of its common stock. The restructuring included the sale of a portion of its residential mortgage loan portfolio and a repositioning of the securities portfolio. Kristen M. Ludgate and Owen J. Sullivan were appointed to the board, bringing extensive experience and diverse knowledge to further the company's strategic growth plans.
Keefe, Bruyette & Woods and RBC Capital have maintained positive outlooks on Associated Banc-Corp's prospects, projecting improved return on tangible common equity for the years 2025 and 2026. Piper Sandler has also adjusted its price target for shares of Associated Banc-Corp, lifting it to $28.00 from the previous $26.00 while maintaining a Neutral rating.
Lastly, Associated Banc-Corp reported a diluted earnings per share of $0.56 for the third quarter of 2024, 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. These recent developments highlight the company's ongoing efforts to strengthen its financial position and improve shareholder returns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.