Associated Banc-Corp 6.625% Fixed-Rate Reset Subordinated Notes due 2033 (ASBA)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

The first question with any subordinated note is not growth but whether the borrower can pay, and here the filed numbers are reassuring in level but not in pattern. Associated earned $123.6 million in the fiscal Q2 2026 quarter ended 2026-06-30 ($0.63 diluted), $119.6 million in fiscal Q1 2026 ended 2026-03-31 ($0.70), and $124.7 million in fiscal Q3 2025 ended 2025-09-30 ($0.73) - a strikingly flat run-rate near $120 million a quarter. Full-year 2025 net income was $474.8 million ($2.77 diluted), yet fiscal 2024 was reported at just $123.1 million ($0.72) and fiscal 2023 at $183.0 million ($1.13) on $1.1 billion of revenue. That fourfold swing from 2024 to 2025 is the single fact I would want explained before lending a dollar; either 2024 carried a large charge or 2025 carried a large benefit, and these figures do not say which. The notes pay 6.625% and closed at $24.87 on 2026-10-16, inside a narrow 52-week range of $23.90 to $25.37. Against par that is roughly a 6.7% current return with a few cents of pull-to-par - fair compensation, not a bargain, and no margin of safety for a claim that stands behind senior creditors. FairStock's computed Lynch category is stalwart, citing 9.1% annual profit growth over five years, but that describes the equity, not the note. For the note, the reset terms and the bank's capital are what matter, and neither appears in these figures.

In plain English: Associated Banc-Corp is a bank holding company, and these notes are effectively money lent to the bank that pays a set interest rate of 6.625% until 2033. The bank earned about $120 million in each of its recent quarters and $474.8 million in fiscal 2025, but fiscal 2024 showed only $123.1 million, so results have swung sharply. The notes trade at $24.87, a little below the $25 they are meant to repay, which works out to a yearly interest return of roughly 6.7%.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer