Associated Bank Corporation SWOT and PESTLE Analysis
COMPANY PROFILE -Associated Bank Corporation
Business Sector :Banking and Financial Services
Operating Geography :United States, North America, Global
About Associated Bank Corporation :
Associated Bank Corporation is a U.S regional bank holding company providing commercial banking, retail banking, private banking, commercial real estate lending and specialized financial services. Headquartered in Green Bay, Wisconsin, U.S, Associated is a Midwest Bank with over 220 branches serving more than 100 communities throughout Illinois, Wisconsin and Minnesota. The company also has loan production offices in Michigan, Indiana, New York, Missouri, Texas and Ohio. Associated Bank is regulated by the Office of the Comptroller of the Currency within the Department of the Treasury. The bank is a member of the Federal Reserve Bank of Chicago, the Federal Deposit Insurance Corporation and the Federal Home Loan Bank of Chicago. Associated Bank was formed in the year 1970 with the alliance of three community banks namely The First National Bank of Neenah, Kellogg Citizens National Bank and Manitowoc Savings Bank. The number of employees in Associated Bank Corporation as of early 2023 is 4,200 people approximately. In 2023 the bank received National recognition for work with the Food Allergy Research and Education (FARE) organization.
Associated Bank Corporation vision statement is “Associated Bank will be the Midwest’s premier financial services company, distinguished by consistent, quality customer experiences, built upon a strong commitment to our colleagues and the communities we serve, resulting in exceptional value to our shareholders through economic cycles.” The USP or Unique Selling Point of Associated Bank Corporation lies in being the largest Wisconsin based bank with a rich history that traces back to 1861.
Associated Bank Corporation Revenue :
$1.1 Billion - FY ending 31st December 2021
$1.25 Billion - FY ending 31st December 2020
Competitive Analysis of Associated Bank Corporation
Strengths | Weaknesses |
1. Robust growth in commercial loans throughout the year 2. More asset-sensitive and more customer-funded organisation 3. Well-diversified portfolio of high-quality credits 4. Midwest footprint holds 19% of the U.S. population 5. Offers digital associated bank mobile | 1. Expenses to increase with planned technology and staffing additions 2. Expects $1.5 million quarterly hit from overdraft reforms |
Opportunities | Threats |
1. Emerging Commercial activity point to additional growth in 2022 2. Expansion into higher yielding assets is expected to drive both incremental revenue and margins 3. Shifting investment priorities to ensure Associated has a digital forward focus | 1. Recession risk is looming large with rate hikes 2. Competition with bigger banks and upstarts |
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Detailed SWOT Analysis of Associated Bank Corporation
Strength
1. Robust growth in commercial loans throughout the year: Midway through 2021, Associated Bank Corp. started to notice positive signs of rising business activity and line utilisation. As a result, there has been a noticeable increase in the balance of commercial loans, including loans for commercial enterprises and commercial real estate (CRE). The bank's entire commercial loan book increased by nearly $500 million during the fourth quarter of 2021, which is a 13% annualised growth rate from the previous quarter, despite its deliberate reduction of the oil and gas portfolio and the forgiveness of Paycheck Protection Program debts. According to Associated Bank, fiscal 2022 was poised for a recovery in general commercial loans due to ongoing indications of an expanding economy. The bank hired five seasoned executives in commercial business banking in 2021 and plans to hire more to accelerate growth. The bank believes that seasoned executives will be able to expand its clientele in its core states, notably in the expanding markets of Milwaukee, Chicago, the Twin Cities, and Northeast Wisconsin, and add an extra $100 million in loan balances each year going forward. The amount of commercial loans increased by $1.2 billion, consumer loans increased by $766 million, total deposits increased by 1%, and the net interest margin increased by 29 basis points at Associated Bank Corp.
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Weakness
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Opportunity
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Threat
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Major Competitors :
- BMO Harris Bank
- Huntington National Bank
- Wells Fargo
- Bank of America
- Citizens National Bank
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References used in Associated Bank Corporation SWOT & PESTLE Analysis Report
1. Annual Report - https://s25.q4cdn.com/751560512/files/doc_financials/2021/ar/P05764-AB-Annual-Report-2021_FNL.pdf
2. Investors Presentation - https://s25.q4cdn.com/751560512/files/doc_financials/2022/q2/ASB-2Q22-Earnings-Presentation-Final.pdf
3. Recession Risk Is Growing With Rate Hikes, Regional U.S. Banks Say - https://www.bloomberg.com/news/articles/2022-04-22/recession-risk-is-growing-with-rate-hikes-regional-banks-say
4. Associated Bank Releases 2021 Environmental, Social and Governance (ESG) Report - https://www.prnewswire.com/news-releases/associated-bank-releases-2021-environmental-social-and-governance-esg-report-301501096.html
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