Associated Banc-Corp Reports Third Quarter 2026 Earnings of $0.76 Per Common Share, or $0.81 Per Common Share¹ Excluding Nonrecurring Items Recognized During the Quarter

Associated Banc-Corp posts strong Q3 growth with higher earnings, loans, and deposits.

What the company is saying

Associated Banc-Corp reports net income available to common equity of $144 million, or $0.76 per share, for Q3 2026, up from $121 million ($0.63 per share) in Q2 2026 and $122 million ($0.73 per share) in Q3 2025. The company highlights that results include several nonrecurring expenses tied to the acquisition of American National Corporation, which closed April 1, 2026; excluding these, adjusted earnings are $154 million, or $0.81 per share. President & CEO Andy Harmening frames the narrative around sustainable organic growth, profitability, and an improving return profile, emphasizing strong core customer deposit growth, net interest margin expansion, and fee income growth. The company executed $100 million in share repurchases during the quarter, buying back 3.2 million shares at an average price of $30.88. The conversion of American National Corporation is complete, which management claims provides further growth levers. The tone is confident, with explicit forward guidance for 2026 on loan, deposit, and income growth.

What the data suggests

Q3 2026 net income of $144 million and EPS of $0.76 represent sequential and year-over-year growth, with adjusted earnings (excluding nonrecurring acquisition costs) at $154 million, or $0.81 per share. Total loans at quarter-end reached $36.5 billion, up 0.1% from Q2 and 18% from Q3 2025; core customer deposits ended at $34.8 billion, up 2% sequentially and 21% year-over-year. Net interest income rose to $377 million, up 2% from Q2 and 24% from the prior year, with net interest margin expanding to 3.20%. Noninterest income was $87 million, and noninterest expense was $260 million, including $13 million of acquisition-related costs. The company repurchased $100 million in stock, and the CET1 capital ratio stands at 10.38%. Credit quality metrics remain stable, with allowance for credit losses at 1.34% of loans and net charge-offs at 0.19% of average loans. The data supports management's claims of broad-based growth and improved profitability, with the acquisition's impact already reflected in the current quarter's results. Forward guidance targets 18–20% loan growth, 17–19% deposit growth, and 19–21% core customer deposit growth for 2026, with net interest income expected to rise 19–21%.

Analysis

The announcement presents a positive tone, emphasizing growth in net income, deposits, and loans, all of which are substantiated by detailed numerical disclosures. The majority of key claims are realised and supported by hard financial data, including net income, EPS, net interest income, and capital ratios. Forward-looking statements (guidance for 2026 loan, deposit, and income growth) are present but clearly separated from realised results and do not dominate the narrative. The only minor inflation comes from qualitative phrases such as 'sustainable organic growth' and 'providing additional growth opportunities,' which are not directly quantified. There is no evidence of exaggerated hype or narrative inflation, as the language is proportionate to the reported progress and the company provides full transparency on both GAAP and adjusted results. No large capital outlay is paired with only long-dated, uncertain returns; the acquisition's impact is already reflected in the current quarter's results.

Risk flags

• ●Integration risk remains following the American National Corporation acquisition, as nonrecurring expenses impacted Q3 results and further operational or cultural challenges could emerge in subsequent quarters.
• ●Credit risk is present, with nonaccrual loans rising to $183 million (0.50% of total loans), up from $150 million (0.41%) in the prior quarter and $106 million (0.34%) a year ago, indicating some deterioration in asset quality.
• ●Expense management risk is highlighted by a 20% year-over-year increase in noninterest expense, including $13 million in acquisition-related costs, which could pressure future profitability if not contained.
• ●Guidance risk exists if economic conditions change or if organic growth does not meet the projected 18–20% loan and 17–19% deposit growth for 2026, potentially leading to a shortfall versus expectations.

Bottom line

Associated Banc-Corp delivered a strong Q3, with higher earnings, expanding loans and deposits, and improved net interest income and margin. The completed acquisition of American National Corporation is already contributing to scale, but integration and expense control remain areas to watch. Credit quality metrics show some deterioration, with rising nonaccrual loans, though overall reserves and capital ratios remain robust. The company’s forward guidance for 2026 is ambitious, targeting high-teens growth in loans and deposits and double-digit net interest income gains. Investors should focus on the sustainability of these trends, the realization of projected growth, and any further impacts from acquisition integration. The key takeaway is that the company is on a positive financial trajectory, but continued delivery on growth and credit quality will determine whether this momentum is sustained.

Announcement summary

(NYSE:ASB) Associated Banc-Corp reported net income available to common equity of $144 million, or $0.76 per common share, for the quarter ended September 30, 2026. This compares to $121 million, or $0.63 per common share, for the quarter ended June 30, 2026, and $122 million, or $0.73 per common share, for the quarter ended September 30, 2025. The quarter's results included several nonrecurring expenses related to the acquisition of American National Corporation, which closed on April 1, 2026. Excluding these nonrecurring items, adjusted earnings were $154 million, or $0.81 per common share. President & CEO Andy Harmening stated that the company is focused on sustainable organic growth, profitability, and improving its return profile, highlighting strong core customer deposit growth, net interest margin expansion, fee income growth, and a strong bottom line. The company executed $100 million in share repurchases during the quarter, repurchasing 3.2 million shares at a weighted average share price of $30.88. The conversion of American National Corporation was completed, providing additional growth opportunities. Period end total loans were $36.5 billion, up 0.1% from the prior quarter and up 18% from the same period last year. Period end commercial & industrial loans were $13.8 billion, up 0.4% from the prior quarter and up 19% from the same period last year. Period end total deposits were $40.4 billion, up 1% from the prior quarter and up 16% from the same period last year. Period end core customer deposits were $34.8 billion, up 2% from the prior quarter and up 21% from the same period last year. Net interest income was $377 million, up 2% from the prior quarter and up 24% from the same period last year, with a net interest margin of 3.20%. Noninterest income was $87 million, and noninterest expense was $260 million, which included $13 million of nonrecurring costs related to the acquisition. Provision for credit losses was $14 million. The allowance for credit losses on loans to total loans ratio was 1.34%. Net charge offs to average loans (annualized) were 0.19%. Average total loans for the quarter were $36.2 billion, up 1% from the prior quarter and up 18% from the same period last year. Commercial and business lending averaged $15.0 billion, commercial real estate lending averaged $9.1 billion, and consumer lending averaged $12.1 billion. Average deposits for the quarter were $41.0 billion, up 1% from the prior quarter and up 18% from the same period last year. Noninterest-bearing demand deposits averaged $7.4 billion, savings averaged $6.2 billion, interest-bearing demand deposits averaged $9.0 billion, money market deposits averaged $7.6 billion, brokered CDs averaged $3.9 billion, other time deposits averaged $5.0 billion, and network transaction deposits averaged $1.9 billion. Core customer deposits averaged $35.2 billion. The company continues to expect 2026 period end loan growth of 18% to 20%, total deposit growth of 17% to 19%, and core customer deposit growth of 19% to 21% compared to standalone 2025 results. Net interest income is expected to grow 19% to 21% in 2026. Total noninterest income for the quarter was $87 million, with line items including wealth management fees, service charges, card-based fees, capital markets, mortgage banking, and asset gains. Noninterest expense included personnel, technology, legal and professional, intangible amortization, and other expenses. Income tax expense was $43 million, with an effective tax rate of 22.86%. Nonaccrual loans were $183 million, with a nonaccrual loans to total loans ratio of 0.50%. Net charge offs were $18 million. The allowance for credit losses on loans was $491 million. The CET1 capital ratio was 10.38% at September 30, 2026. The company’s capital ratios remain above Basel III "well-capitalized" benchmarks. The company will host a conference call for investors and analysts at 4:00 p.m. Central Time on October 22, 2026.

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