Is ASB's approach to transformation and expansion driving an increase in revenue?

Associated Banc-Corp’s Growth Strategy and Financial Progress

Associated Banc-Corp (ASB) is driving its revenue higher through a comprehensive transformation plan that focuses on both internal growth and acquisitions, optimizing its balance sheet, and restructuring strategically. Thanks to these initiatives, the company achieved a compound annual revenue growth rate of 3.1% over the five-year period ending in 2025.

In 2023, ASB launched the second phase of its strategic roadmap, building on the groundwork laid since 2021. This phase, which concluded in March 2025, prioritized sustainable increases in loans and deposits, as well as greater profitability.

To support these goals, ASB has enhanced its lending operations and expanded its presence in higher-yielding commercial segments, which has improved asset returns and strengthened client relationships. Investments in digital technology have also streamlined operations and improved customer satisfaction, laying the foundation for ongoing revenue growth.

By 2025, total loans had grown by 5% year-over-year, reaching $31.2 billion, fueled by robust commercial and business lending. The company’s focus on higher-quality earning assets improved its balance sheet composition, while its net interest margin rose by 25 basis points to 3.03% compared to the previous year.

ASB is also targeting expansion in key markets such as the Twin Cities, Omaha, Kansas City, and Dallas. Efforts in these regions include hiring seasoned commercial bankers, ramping up marketing, and strengthening local engagement—all aimed at increasing scale, loan origination, and deposit growth.

ASB’s Acquisitions and Restructuring Initiatives

In addition to organic growth, ASB’s acquisition and restructuring activities are expected to further boost revenues. In December 2025, the company announced a $604 million agreement to acquire American National Corporation, with the transaction anticipated to close in the second quarter of 2026. This move is designed to broaden ASB’s reach in high-growth markets and accelerate both loan and deposit expansion. The acquisition is projected to increase ASB’s 2027 earnings per share by approximately 2%, assuming cost efficiencies are realized.

ASB’s commitment to its core banking business is also evident in previous strategic moves. In 2021, the company divested its wealth management subsidiary, Whitnell & Co., and in 2020, it sold its insurance division, Associated Benefits & Risk Consulting. These actions have allowed ASB to streamline its operations and redirect resources toward its primary banking activities.

By concentrating on commercial lending, digital advancements, and selective acquisitions, ASB is reinforcing its revenue streams. Ongoing expansion in dynamic markets and disciplined portfolio management position the company for consistent earnings growth in the future.

ASB’s Stock Performance and Analyst Rating

Over the past three months, ASB shares have climbed 6.9%, slightly outpacing the industry’s 6.8% gain.

Image Source: Zacks Investment Research

Currently, ASB holds a Zacks Rank #2 (Buy).

Transformation Strategies at Other Major Banks

Barclays PLC (BCS) is also pursuing a business transformation, focusing on targeted acquisitions, strategic partnerships, and portfolio adjustments to strengthen its core operations and enhance long-term profitability. The bank is allocating capital to scalable, high-return areas while reducing its involvement in less profitable segments.

As part of this strategy, Barclays announced in October 2025 the acquisition of Best Egg, a U.S.-based digital lending platform, to expand its consumer lending and digital capabilities in the United States. In August 2025, Barclays became the exclusive issuer of General Motors credit cards, acquiring a $1.6 billion U.S. credit card portfolio. Earlier, in April 2025, the bank partnered with Brookfield Asset Management Ltd. to modernize its payment acceptance business and boost efficiency.

Citigroup Inc. (C), under CEO Jane Fraser, continues to streamline its operations and focus on core business lines. Since April 2021, Citigroup has been exiting consumer banking in 14 markets across Asia and EMEA, having completed withdrawals from nine countries so far.

In February, Citigroup finalized the sale of its Russian banking unit, AO Citibank, to Renaissance Capital, marking a full exit from Russia and improving its capital position by reducing risk-weighted assets. On February 23, Citigroup announced agreements with several investors to sell a combined 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex), furthering its divestiture of its Mexican consumer banking business as Banamex prepares for a potential IPO.

Zacks’ Top Stock Picks for Potential Growth

Zacks’ research team has identified five stocks with the potential to double in value in the coming months. Among these, Director of Research Sheraz Mian highlights one standout pick.

This leading choice is a lesser-known satellite communications company, positioned to benefit from the rapidly expanding space industry, which is projected to reach a trillion-dollar valuation. The company’s customer base is growing quickly, and analysts expect a significant revenue surge in 2025. While not all top picks deliver outsized returns, this stock could outperform previous Zacks selections such as Hims & Hers Health, which soared by 209%.