Source: Investing Posted 15/11/2024, 00:22
Associated Bank Corp. (NYSE: ASB), the largest Wisconsin-based banking holding company, has revealed its intention to conduct a public offering of 11.5 million of its common stock. The company also plans to give underwriters a 30-day option to buy up to 1.725 million additional shares.
The financial institution aims to use net proceeds for the company’s general purposes, which include supporting its organic growth and capital generation. Potential uses of the funds also include investments in Associated Bank, N.A., and explore balance sheet optimization strategies. B of A Securities and J.P. Morgan have been appointed as joint managers to manage the books for the offering.
The shares will be available through a prospectus statement and prospectus addendum submitted to the Securities and Exchange Commission (SEC), followed by a final prospectus addendum.
Associated Bank Corp, with total assets of $42 billion, operates nearly 200 banking locations in Wisconsin.
Illinois and Minnesota, and maintains loan production offices in several other states. The Offering is subject to market and other conditions.
and there will be no sale of such securities in any jurisdiction where such offer.
solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.
The offer will only be made by means of a written prospectus. This announcement is based on a press release issued by Associated Bank Corp and does not constitute an offer to sell or a solicitation to offer to buy any securities.
Associated Bank Corp reported noteworthy developments. The company announced an increase in its quarterly cash dividend from $0.22 to $0.23 per ordinary share. In addition, regular quarterly cash dividends on its preferred shares have been announced, with payments due to shareholders in mid-December.
In its earnings for the third quarter of 2024, Associated Bank Corp reported diluted earnings per share of $0.56. This was accompanied by a 2% increase in core customer deposits, contributing to a reduction in wholesale financing. The company also noted a 1% increase in total loans, mainly in the commercial and automotive sectors.
and a $6 million increase in net interest income to $253 million.
Associated Bank Corp has added 16 business relationship managers with plans to add 26 more by early 2025. The company expects cumulative growth in commercial loans of $750 million and growth in deposits of $2.5 billion by the end of 2025.
The company launched a new sector specializing in deposits and payment solutions, demonstrating its strategic planning in response to recent economic challenges. These latest developments underscore the flexibility and forward-thinking approach of AP. Associated Bank-Corp’s (NYSE: ASB) decision to hold an IPO of 11.5 million shares comes at a time when the company is showing strong financial performance.
According to investing data, ASB’s market capitalization is $3.96 billion and has shown impressive returns.
with a year-long total price return of 58.65% according to the latest data. The bank’s commitment to shareholder value is evident at the dividend date.
One of Investing’s tips highlights that Associated Bank Corp has maintained dividend payments for 50 consecutive years.
demonstrating its financial stability and commitment to returning value to shareholders. This long-term dividend policy aligns well with the company’s current focus on organic growth and capital generation through a planned share offering.
