Terms

Series

5.625% Non-Cumulative Perpetual Preferred Stock, Series F

Liquidation Preference

$1,000.00

Coupon Rate

5.625%

Rate Type

Fixed

Annual Dividend

$56.25

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 15, 2025

First Call Price

$1,000.00

Capital Stack Ranking

Junior To: All Indebtedness And Other Non-Equity Claims Of Associated Banc-Corp, All Existing And Future Liabilities And Obligations Of Subsidiaries; Pari Passu With: Series C Preferred Stock (6.125% Non-Cumulative Perpetual), Series D Preferred Stock (5.375% Non-Cumulative Perpetual), Series E Preferred Stock (5.875% Non-Cumulative Perpetual), Any Other Preferred Stock Ranking Equally; Senior To: Common Stock, Any Junior Stock Or Junior Preferred Series

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.025

Shares Offered

4,000,000

Prospectus Summary

Associated Banc-Corp (NYSE: ASB), a Wisconsin-based bank holding company with ~$34 billion in assets, is offering 4,000,000 depositary shares (NYSE: ASBPRF), each representing a 1/40th interest in a share of its 5.625% Non-Cumulative Perpetual Preferred Stock, Series F, with a liquidation preference of $1,000 per share ($25 per depositary share). The fixed coupon of 5.625% generates $14.0625 per preferred share ($0.3516 per depositary share) quarterly. Dividends are non-cumulative — if the board does not declare a dividend for any quarter, that payment is permanently lost and cannot be recovered in future periods, creating meaningful income uncertainty compared to cumulative structures. The stock is perpetual with no mandatory redemption date but becomes callable at the issuer's option beginning September 15, 2025. The Series F Preferred Stock sits senior to Associated Banc-Corp's common stock and on parity with its existing Series C (6.125%), Series D (5.375%), and Series E (5.875%) perpetual preferred issues, but is subordinate to all debt and non-equity obligations of the holding company. Critically, as a holding company issue, the Series F is structurally subordinated to all liabilities of Associated Bank, N.A. — the operating subsidiary — meaning preferred holders can only access residual assets after the bank's creditors are satisfied. There is a regulatory capital call provision: the issuer may redeem all (not part) of the preferred within 90 days if a change in law or regulation causes the stock to lose its Tier 1 capital treatment. This matters because it could force an early redemption at par in a rising-rate environment, eliminating any price premium. At the $25 offering price, the effective yield is 5.625% ($1.40625 annually per depositary share), paid on March 15, June 15, September 15, and December 15, commencing September 15, 2020, with record dates falling 15 calendar days before each payment date. Dividends should qualify as ordinary dividends eligible for the dividends-received deduction (DRD) for corporate holders and potentially for the qualified dividend income (QDI) preferential rate for individuals, to the extent paid from current or accumulated earnings and profits — though insufficient earnings in any year could cause distributions to be treated as return of capital. The dividend stopper prevents any dividends or buybacks on common stock or junior securities unless full Series F dividends have been paid or set aside, offering some protection to preferred holders' relative priority.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Associated Banc-Corp has not paid or set aside full dividends on the Series F Preferred Stock for the current dividend period, it cannot pay dividends on or repurchase its common stock or any junior stock (except stock dividends on junior stock).

Other Preferreds from Associated Banc-Corp

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 51 (Average)