Associated Banc-Corp's Organic Growth on Track - Analyst Blog

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We issued an updated research report on Associated Banc-Corp ( ASBC ) 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 apprehensive.

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 compliance costs.

Currently, Associated Banc-Corp has a Zacks Rank #2 (Buy).

Stocks That Warrant a Look

Other Midwest banks worth considering include Huntington Bancshares Incorporated ( HBAN ), 1st Source Corporation ( SRCE ) and German American Bancorp Inc. ( GABC ). All these stocks carry the same Zacks Rank as Associated Banc-Corp.


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HUNTINGTON BANC (HBAN): Free Stock Analysis Report

ASSOC BANC CORP (ASBC): Free Stock Analysis Report

GERMAN AMER BCP (GABC): Free Stock Analysis Report

FIRST SOURCE CP (SRCE): Get Free Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: NIM , HBAN , ASBC , GABC , SRCE

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