GREEN BAY, Wis. - Associated Banc-Corp (NYSE: NYSE:ASB), a major Midwest banking franchise, has announced an increase in its quarterly cash dividend for common shares. The dividend has been raised from $0.22 to $0.23 per common share and is scheduled to be paid on December 16, 2024, to shareholders of record as of December 2, 2024.
In addition to the common stock dividend, the company's Board of Directors also declared regular quarterly cash dividends on its preferred stocks. Holders of the 5.875% Series E Perpetual Preferred Stock will receive $0.3671875 per depositary share, and holders of the 5.625% Series F Perpetual Preferred Stock will receive $0.3515625 per depositary share on the same payment date.
Associated Banc-Corp, with total assets of $42 billion, is the largest bank holding company headquartered in Wisconsin. The company operates nearly 200 banking locations across Wisconsin, Illinois, and Minnesota and maintains loan production offices in several other states.
This information is based on a press release statement and contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are not purely historical and are subject to risks and uncertainties that could cause actual results to differ from those suggested by the forward-looking statements. Factors that may influence actual outcomes include those identified in the company's most recent Form 10-K, subsequent Form 10-Qs, and other filings with the SEC.
The dividend increase reflects Associated Banc-Corp's commitment to providing value to its shareholders and is a sign of the company's financial health and optimistic outlook. As the largest bank holding company based in Wisconsin, Associated Banc-Corp continues to play a significant role in the Midwest's financial landscape.
In other recent news, Associated Banc-Corp reported a steady performance in its third-quarter earnings for 2024, despite a challenging U.S. economic landscape. The company announced a diluted earnings per share (EPS) of $0.56 and an increase in core customer deposits by 2%, which led to a reduction in wholesale funding. Furthermore, a 1% rise in total loans was observed, primarily in the commercial and auto sectors, along with a $6 million increase in net interest income (NII) to $253 million.
The company has also added 16 commercial relationship managers since September 2023, with plans to add 26 more by early 2025. Associated Banc-Corp anticipates cumulative commercial loan growth of $750 million and deposit growth of $2.5 billion by the end of 2025. Despite careful attention to macroeconomic factors affecting credit quality, the firm remains optimistic about its trajectory.
Associated Banc-Corp has launched a new specialty deposit and payment solutions vertical, with a focus on select short-term credits in the commercial real estate sector. The company also expects modest cash flow growth in its securities portfolio and anticipates positive operating leverage for 2025, contingent on rate cuts and overall revenue growth. These recent developments highlight the company's strategic planning and resilience in the face of economic headwinds.
InvestingPro Insights
Associated Banc-Corp's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 3.7%, which is particularly attractive in the current market environment. This latest increase is part of a broader pattern, as an InvestingPro Tip reveals that Associated Banc-Corp has raised its dividend for 12 consecutive years, demonstrating a consistent commitment to returning value to shareholders.
The bank's financial health appears robust, with a price-to-book ratio of 0.83, suggesting the stock may be undervalued relative to its assets. This could be of interest to value investors, especially considering the company's profitability over the last twelve months, as noted in another InvestingPro Tip.
Despite facing challenges such as weak gross profit margins, Associated Banc-Corp has shown resilience. The company's stock has performed exceptionally well, with a one-year price total return of 54.5%, indicating strong investor confidence in its business model and future prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Associated Banc-Corp's financial position and market performance. There are 8 more InvestingPro Tips available for ASB, which could offer valuable perspectives for those considering this Midwest banking franchise as an investment opportunity.
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