What Associated Banc-Corp (ASB)'s Raised 2025 Net Interest Income Guidance Means For Shareholders

• Associated Banc-Corp recently reported its second quarter 2025 financial results, showing net income of US$111.23 million and diluted earnings per share of US$0.65, alongside higher net charge offs compared to the prior quarter.
• An important update from the company was its revised full-year guidance, projecting total net interest income growth of 14% to 15% for 2025, pointing to a positive outlook on core banking revenues.
• We'll examine how this stronger net interest income guidance may influence Associated Banc-Corp's investment outlook going forward.

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Associated Banc-Corp Investment Narrative Recap

To own Associated Banc-Corp, an investor likely needs confidence in the company’s ability to deliver on robust net interest income growth, while absorbing near-term pressures from higher charge offs and competition in commercial lending. The recent uptick in net charge offs does not appear to materially change the biggest short-term catalysts, growth in core loan volumes and improved deposit cost management, or the top risk, which remains margin pressure from rising competition and possible continued credit losses.

The standout announcement for investors is Associated Banc-Corp’s revised full-year guidance projecting 14% to 15% growth in total net interest income for 2025. This points to management’s optimism around underlying business growth and offers support to the catalyst of profitable loan and deposit franchise expansion, despite some pressure on charge offs in the latest quarter.

By contrast, investors should also keep an eye on the risk that spread compression in commercial real estate could...

Read the full narrative on Associated Banc-Corp (it's free!)

Associated Banc-Corp's outlook forecasts $1.9 billion in revenue and $649.8 million in earnings by 2028. This scenario assumes 23.8% annual revenue growth and a $518.4 million increase in earnings from $131.4 million currently.

Uncover how Associated Banc-Corp's forecasts yield a $27.30 fair value, a 7% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for Associated Banc-Corp range from US$27.30 to US$44.69 across 2 distinct analyses. While the company’s positive net interest income guidance suggests improving fundamentals, continued margin pressure and competition remain broad considerations for future performance; it is worth comparing these varied viewpoints.

Explore 2 other fair value estimates on Associated Banc-Corp - why the stock might be worth as much as 75% more than the current price!

Build Your Own Associated Banc-Corp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Associated Banc-Corp research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Associated Banc-Corp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Associated Banc-Corp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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