Key Highlights

  • Adjusted Earnings were USD 0.81 per share, excluding USD 13 million of deal costs.
  • Net interest income was USD 377 million, up 24% year over year.
  • Net interest Margin expanded 3 basis points to 3.20%.
  • The company repurchased USD 100 million of common stock.

Earnings and Margin

Associated Banc-Corp (NYSE:ASB) reported third-quarter 2026 results on Thursday. Net Income available to common Equity was USD 144 million, or USD 0.76 per common share, against USD 121 million, or USD 0.63, in the second quarter and USD 122 million, or USD 0.73, a year earlier. Adjusted Earnings Per Share were USD 0.81, which excludes USD 13 million of nonrecurring Acquisition expenses.

Net interest income was USD 377 million, up 2% from the second quarter and 24% year over year. The net interest margin was 3.20%, up 3 basis points on Balance Sheet remixing and core deposit growth. Noninterest income was USD 87 million, up 8% on Capital Markets and asset gains. Noninterest expense was USD 260 million, USD 12 million lower as acquisition costs declined, and the adjusted efficiency ratio was 51.27%.

Loans and Deposits

Period-end loans were USD 36.5 billion, up 18% year over year on the American National acquisition and organic growth. Core customer deposits were USD 34.8 billion, up 2% from the prior quarter and 21% year over year. Chief Executive Officer Andrew Harmening said commercial pipelines are 36% to 40% above a year ago. Commercial Real Estate production is up 50% year to date, but payoffs and paydowns rose by a similar 50%, and management said elevated payoffs in commercial real estate continue in the near term.

Treasury management sales are up 37% year to date. The consumer household base has grown for seven consecutive quarters. Securities were USD 10 billion, or 22.6% of total assets.

Credit Quality

Net charge-offs were 19 basis points annualized, down from 26 basis points. The provision for Credit losses was USD 14 million against USD 19 million. Nonaccrual loans were USD 183 million, up USD 33 million, mainly from the reclassification of one USD 30 million commercial and industrial credit. Chief Credit Officer Patrick Ahern said total delinquencies rose because of a systems conversion in the auto portfolio that required some customers to re-enroll in ACH payments.

Capital, Integration and Guidance

The company repurchased 3.2 million shares for USD 100 million at a weighted average price of USD 30.88. The common equity tier 1 ratio was 10.38%, within a target range of 10% to 10.75%. The systems conversion for American National is complete, and the Omaha and Twin Cities branches give the company metropolitan market positions.

Full-year guidance calls for commercial and industrial Loan growth of 20% to 22% against 2025 standalone results and period-end total deposit growth of 17% to 19%. Full-year acquisition expense guidance was lowered to USD 48.5 million from USD 52.5 million. Management cited Interest Rate sensitivity of 1.8% of net interest income for a 100 basis point rise and 1.1% for a 100 basis point decline.

Reference Points

Reported earnings per share of USD 0.76 and adjusted earnings per share of USD 0.81 differ by USD 0.05, the effect of acquisition costs. Items to follow include nonaccrual loans after a USD 33 million rise, commercial real estate payoffs against production, the CET1 ratio at 10.38% as repurchases continue, and deposit growth against the guided 17% to 19%.