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    Associated Banc-Corp (ASB) Raises Prime Rate, Is The Stock Still 11% Undervalued?

    Simply Wall St·09/18/2026 12:22:39
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    Associated Banc-Corp (ASB) has raised its prime rate to 7.00% from 6.75%, effective 17 September 2026. This change directly affects loan pricing, interest income, and customer borrowing costs.

    Recent trading has been choppy for Associated Banc-Corp, with the share price at $29.88 after a 1-day share price return of 0.40%, a 7-day return that declined 1.52%, and a 30-day return that fell 5.65%. Momentum over longer horizons is still shaped by a 15.99% year-to-date share price gain and total shareholder returns of 16.53% over 1 year, 94.00% over 3 years, and 74.01% over 5 years.

    Scan how Associated Banc-Corp’s prime rate move compares with other banks reacting to the same pressures by reviewing a curated list of solid balance sheet and fundamentals (23 results).

    Bulls view Associated Banc-Corp’s prime rate move and recent multi year gains as evidence the business can command a richer multiple. Bears highlight recent share price softness and rate risk. Which case does the valuation support?

    Most Popular Narrative: 11% Undervalued

    Associated Banc-Corp is trading at $29.88 against a widely followed fair value estimate of $33.56. The narrative frames the stock as modestly underpriced and closely tied to its earnings and margin story.

    The company's strategic pivot toward growing commercial and industrial (C&I) lending, replacing lower-yielding residential balances with higher-yielding, relationship-focused assets, is driving record net interest income and margin expansion. This is positioning the balance sheet for sustained profitability growth and is likely to positively impact revenue and net margins.

    See why 2 investors see Associated Banc-Corp as 11% undervalued.

    Result: Fair Value of $33.56 (UNDERVALUED)

    Still, the Associated Banc-Corp story can change quickly if commercial and CRE exposures see heavier credit losses, or if deposit growth slows and funding costs tighten the squeeze.

    Find out about the key risks to this Associated Banc-Corp narrative.

    Next Steps

    Mixed messages in the Associated Banc-Corp story today. If you want to move quickly and form your own stance, review the 5 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond Associated Banc-Corp?

    If you stop with Associated Banc-Corp, you risk missing out on other compelling setups across income, value, and resilience that could round out your portfolio.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.