We issued an updated research report on
) on Jul 1, 2014. The company's better-than-expected first-quarter
2014 results, considerable organic growth prospects and efficient
capital deployment activities are impressive. However, mounting
expenses and an overall subdued economic scenario keep us
Associated Banc-Corp has been witnessing consistent growth in
deposits and net interest income over the last few years. Moreover,
the continuous change in deposit mix backed by rise in non-interest
bearing deposits will likely reduce the company's funding cost.
Again, the capital generated from these accounts will aid further
organic growth in the quarters ahead.
Following robust first-quarter results, the Zacks Consensus
Estimate for 2014 inched up 1.0% to $1.13 per share over the last
60 days. For 2015, the Zacks Consensus Estimate advanced 1.0% to
$1.22 per share over the same time period.
Nonetheless, rising expenses and persistent pressure on net
interest margin (NIM) continue to drag Associated Banc-Corp's
financials. While NIM will be subdued in the near term, given the
still low interest rate scenario; expenses will likely rise
primarily due to a stringent regulatory landscape and subsequent
Currently, Associated Banc-Corp has a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Other Midwest banks worth considering include
Huntington Bancshares Incorporated
1st Source Corporation
German American Bancorp Inc.
). All these stocks carry the same Zacks Rank as Associated
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HUNTINGTON BANC (HBAN): Free Stock Analysis
ASSOC BANC CORP (ASBC): Free Stock Analysis
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FIRST SOURCE CP (SRCE): Get Free Report
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