Associated Banc-Corp Reports Strong Q2 2026 Earnings Amid American National Acquisition
Q2 2026 Results Signal Robust Growth and Successful Integration of American National
GREEN BAY, Wis. – July 23, 2026 – Associated Banc-Corp (NYSE: ASB) delivered a robust set of second quarter 2026 financial results, with several key metrics exceeding expectations and demonstrating momentum from both organic growth and the recent acquisition of American National Corporation.
Key Highlights for Investors
- Net income available to common equity was \$121 million, or \$0.63 per common share. Excluding one-time costs related to the American National acquisition, adjusted net income was \$140 million, or \$0.73 per share.
- Strong Organic and Acquired Growth: Total period end loans reached \$36.5 billion, up 15% sequentially and 19% year-over-year. Commercial & industrial loans grew to \$13.8 billion, an 11% quarter-over-quarter and 22% year-over-year increase. Total deposits ended the period at \$39.9 billion, up 12% sequentially and 17% year-over-year.
- Net interest income climbed to \$370 million, a 20% increase from Q1 and 23% from Q2 2025. Net interest margin improved to 3.17%.
- Noninterest income rose to \$80 million, up \$13 million year-over-year, while noninterest expense also rose notably, reflecting \$24 million in acquisition-related costs.
- Credit quality remains solid, with allowance for credit losses on loans at 1.36% of total loans, and CET1 capital ratio at 10.47%.
Details and Strategic Commentary
President & CEO Andy Harmening emphasized the sustained focus on organic growth and highlighted the successful integration of American National Corporation, stating:
“Through June 30, we’ve seen double-digit C&I growth, excellent household growth, and strong, improving annual deposit growth— all while maintaining our disciplined approach to expense management and credit. We’ve also been pleased with the American National partnership, which has largely come in as expected.”
Management reaffirmed expectations for continued growth in the second half of 2026 and into 2027, driven by both organic initiatives and further integration of the American National acquisition.
Financial and Operational Details
- Loan Growth:
- Average total loans for Q2 2026 were \$35.9 billion, up 15% quarter-over-quarter and 18% year-over-year.
- Commercial and business lending averaged \$14.8 billion for the quarter (+17% QoQ, +22% YoY).
- Commercial real estate lending was \$8.9 billion (+22% QoQ, +20% YoY), and consumer lending reached \$12.2 billion (+11% QoQ, +11% YoY).
- Deposit Growth:
- Average deposits for Q2 2026 were \$40.4 billion (+15% QoQ, +18% YoY).
- Core customer deposits rose to \$34.2 billion, a 12% increase quarter-over-quarter and 21% year-over-year.
- Revenue and Margins:
- Net interest margin rose to 3.17% (up 14 bps QoQ, 13 bps YoY).
- Average yield on total loans was 5.67%, with the average cost of interest-bearing liabilities at 2.66%.
- Expense and Integration Impact:
- Noninterest expense was \$272 million for the quarter, including \$24 million in one-time acquisition costs.
- Personnel expense increased \$26 million sequentially (reflecting integration and expanded operations).
- Legal/professional and technology expenses also increased, reflecting the scale-up post-acquisition.
- Credit Quality and Capital:
- Provision for credit losses was \$19 million, up from \$11 million in Q1 and \$18 million in Q2 2025.
- Net charge-offs were \$23 million, up from \$5 million in Q1 and \$13 million in Q2 2025.
- Allowance for credit losses on loans (ACLL) increased to \$494 million (1.36% of loans).
- CET1 capital ratio remained strong at 10.47%.
Guidance and Outlook
- 2026 full-year loan growth is expected to be 18-20%, driven by both organic initiatives and the American National acquisition.
- Deposit growth is expected at 17-19%, with core customer deposit growth between 19-21%.
- Net interest income is projected to grow 19-21% for 2026.
- Noninterest income is expected to rise 8-10%, while noninterest expense (including one-time costs) is expected to increase 20-21%.
- Annual effective tax rate is expected between 19-21%.
Shareholder and Market Impact
- American National Acquisition: The integration is progressing as planned, with substantial increases in both loan and deposit volumes. One-time costs have been recognized, but future quarters are expected to benefit from operational synergies and expanded scale.
- Strong Capital and Asset Quality: Despite a rise in net charge-offs and nonaccrual loans (now 0.41% of loans), the company’s provision and reserves remain robust. CET1 and total capital ratios are well above regulatory minimums, supporting capital return potential and future growth.
- Dividend: Quarterly dividend remained at \$0.24 per share; share repurchases were paused during the integration, but the bank maintains significant capital flexibility.
Potential Price-Sensitive Items
- Successful integration of American National is a material positive, supporting higher earnings and growth rates.
- One-time acquisition costs and higher noninterest expenses temporarily depressed GAAP earnings, but underlying profitability remains strong.
- Net interest income and margin expansion, coupled with loan and deposit growth, are clear drivers of shareholder value.
- Credit quality trends should be monitored, as nonperforming loans and charge-offs increased, though they remain manageable and well-reserved.
- Guidance for above-peer growth in loans, deposits, and net interest income should be viewed as supportive of higher valuation multiples.
Conference Call
Associated Banc-Corp will hold its Q2 2026 earnings call at 4:00 p.m. Central Time on July 23, 2026. The webcast and presentation are available via the company’s investor relations website.
About Associated Banc-Corp
With \$52 billion in assets, Associated Banc-Corp is the largest bank holding company based in Wisconsin, operating over 200 locations across the Midwest, with loan production offices in several additional states. The company maintains strong capital, a diversified loan portfolio, and a growing franchise.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. Investors should consult their own advisors and review company filings before making investment decisions. Forward-looking statements are subject to risks and uncertainties, as outlined in Associated Banc-Corp’s public filings.
