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Associated Banc-Corp adds two new directors to its board

Published 12/12/2024, 01:14 am
ASB
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GREEN BAY, Wis. - Associated Banc-Corp (NYSE: NYSE:ASB), a prominent Midwest banking franchise with a market capitalization of $4.24 billion, has today announced the addition of two new members to its Board of Directors. According to InvestingPro data, the bank has demonstrated strong momentum with a 31.5% price return over the past six months. Kristen M. Ludgate and Owen J. Sullivan have been appointed to the board effective immediately, bringing with them a wealth of experience from their respective fields.

Kristen Ludgate, currently serving as the Chief People Officer at HP Inc (NYSE:HPQ)., has a notable background in human resources and legal affairs, having previously been the Chief Human Resources Officer for 3M Company (NYSE:MMM) from 2018 to 2021. Ludgate's extensive tenure at 3M included over 15 years in various legal and executive roles. She is also actively involved in philanthropy, evidenced by her membership on the HP Foundation Board and her past role as chair of the 3M Foundation Board. Ludgate, a graduate of Bowdoin College with a J.D. from the University of Minnesota Law School, will join the Compensation and Benefits Committee at Associated.

Owen J. Sullivan brings to the table his experience as the former President and Chief Operating Officer of NCR (NYSE:VYX) Corporation, where he oversaw operations until his retirement in 2023. Sullivan's career also includes a period of independent consulting, providing strategic guidance and executive mentoring to private equity firms and investors. His educational background includes a bachelor's degree from Marquette University and executive programs at the Kellogg (NYSE:K) School of Business at Northwestern (NASDAQ:NWE) University and Harvard Business School. Sullivan is set to serve on Associated's Enterprise Risk Committee.

Associated Chairman Jay Williams expressed his enthusiasm for the new appointments, and President and CEO Andy Harmening highlighted the “extraordinary talent and experience” that Ludgate and Sullivan bring to the board. Harmening anticipates that their diverse knowledge will be instrumental in furthering the company's strategic growth plans.

Associated Banc-Corp, with total assets of $42 billion, is the largest bank holding company headquartered in Wisconsin. The bank has demonstrated remarkable dividend consistency, maintaining payments for 50 consecutive years with a current yield of 3.54%. It operates nearly 200 banking locations across Wisconsin, Illinois, and Minnesota, and maintains loan production offices in several other states. Trading at a price-to-book ratio of 1.0, the company is currently fairly valued according to InvestingPro's Fair Value model. The company is committed to offering a comprehensive range of financial products and services and is recognized for its commitment to equal housing and lending opportunities. Discover more detailed insights and 8 additional ProTips about ASB in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

This announcement is based on a press release statement from Associated Banc-Corp.

In other recent news, Associated Banc-Corp has made significant strides in its financial strategy. The company has announced a balance sheet restructuring, including the sale of a portion of its residential mortgage loan portfolio and a repositioning of the securities portfolio. Additionally, Associated Banc-Corp has launched a public offering of 11.5 million shares of its common stock, intending to use the net proceeds for general corporate purposes, including supporting its organic growth and capital generation.

The strategic moves, including the equity offering and balance sheet restructuring, are seen as a trade-off, providing long-term benefits at the cost of a tangible book value per share earnback period of five years. Keefe, Bruyette & Woods remain positive on Associated Banc-Corp's prospects, projecting an improved return on tangible common equity (ROTCE) for the years 2025 and 2026 due to these initiatives.

RBC Capital has maintained its Sector Perform rating and $28.00 price target for Associated Banc-Corp, following the company's restructuring actions, which are expected to lead to a stronger margin and spread revenue run-rate for the company in the future. Piper Sandler has 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 has reported a diluted earnings per share (EPS) 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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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