8-K: Associated Banc-Corp Reports Q2 2026 Earnings

Associated Banc-Corp announced Q2 2026 results, with net income available to common equity of $121 million, or $0.63 per common share, and adjusted earnings of $140 million, or $0.73 per common share, excluding nonrecurring acquisition-related expenses.

Summary

• Associated Banc-Corp reported net income of $121 million ($0.63 per common share) for the second quarter of 2026, compared to $108 million ($0.65 per common share) in the same quarter last year.
• Adjusted earnings, excluding nonrecurring expenses from the American National Corporation acquisition, were $140 million ($0.73 per common share).
• Total period-end loans grew 19% year-over-year to $36.5 billion, with commercial and industrial loans up 22% to $13.8 billion.
• Total period-end deposits increased 17% year-over-year to $39.9 billion, with core customer deposits up 21% to $34.2 billion.
• Net interest income rose 23% year-over-year to $370 million, and net interest margin improved 13 basis points to 3.17%.
• Noninterest income increased 20% year-over-year to $80 million.
• Noninterest expense increased 30% year-over-year to $272 million, including $24 million in acquisition-related costs.
• The company expects 2026 period-end loan growth of 18% to 20% and total deposit growth of 17% to 19%.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, with strong organic growth and successful integration of a major acquisition largely offsetting the impact of nonrecurring expenses. The outlook remains cautiously optimistic.

Positives

• Sustained organic growth trends, including double-digit C&I loan growth and strong household growth.
• Successful integration of American National Corporation, largely meeting expectations.
• Total period-end loans increased 19% year-over-year to $36.5 billion.
• Total period-end deposits increased 17% year-over-year to $39.9 billion.
• Core customer deposits grew 21% year-over-year to $34.2 billion.
• Net interest income increased 23% year-over-year to $370 million.
• Net interest margin improved 13 basis points year-over-year to 3.17%.
• Noninterest income increased 20% year-over-year to $80 million.

Negatives

• Reported net income available to common equity was $121 million, or $0.63 per common share, a decrease from $0.70 per common share in the prior quarter.
• Nonrecurring expenses related to the American National Corporation acquisition impacted reported earnings.
• Noninterest expense increased 30% year-over-year to $272 million, largely due to acquisition-related costs.
• Nonaccrual loans increased 36% sequentially to $150 million, with the ratio to total loans rising to 0.41%.
• Net charge-offs increased to $23 million from $5 million in the prior quarter.
• The effective tax rate increased to 22.37% from 21.75% in the prior quarter.

Risks

• Factors which may cause actual results to differ materially from forward-looking statements include the ability to integrate the American National Bank (ANB) business successfully and in a timely manner.
• The possibility that the anticipated benefits of the ANB transaction are not realized when expected or at all.
• The possibility that the ANB transaction may be more expensive to integrate than anticipated.
• Risks identified in the Company's most recent Form 10-K and subsequent Form 10-Qs and other SEC filings.

Future Outlook

The company expects to maintain its growth trajectory through steady execution of organic initiatives and the successful integration of American National Corporation. For 2026, the company anticipates period-end loan growth of 18% to 20% and period-end total deposit growth of 17% to 19% compared to standalone 2025 results. Net interest income growth is expected to be 19% to 21%, and noninterest income growth is expected to be 8% to 10%. Noninterest expense growth is projected at 20% to 21%, including acquisition-related costs. The annual effective tax rate is expected to be between 19% and 21%.

Management Comments

• "Organic growth continues to be a primary focus for our company, and midway through 2026, we've maintained our momentum in several important ways," said President & CEO Andy Harmening.
• "Through June 30th, 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."
• "As we look to the back half of 2026 and into 2027, we expect to maintain our growth trajectory through steady execution of organic initiatives and the successful integration of American National Corporation."
• "We look forward to demonstrating our ability to deliver profitable growth sustainably over time."

Industry Context

StockSavvy.ai notes that Associated Banc-Corp's Q2 2026 results reflect a banking sector focused on integrating recent acquisitions while navigating organic growth opportunities. The reported loan and deposit growth align with broader industry trends of expanding balance sheets, though the impact of nonrecurring acquisition costs is a common theme for banks undertaking significant M&A.

Comparison to Industry Standards

• Associated Banc-Corp's CET1 capital ratio of 10.47% and Total Capital Ratio of 12.79% remain in excess of the Basel III well-capitalized regulatory benchmarks on a fully phased-in basis, which is a standard benchmark for large U.S. banks.
• The reported net interest margin of 3.17% is competitive within the regional banking sector, though specific industry benchmarks vary significantly based on asset size, geographic focus, and business mix.
• The company's loan growth of 19% year-over-year and deposit growth of 17% year-over-year are strong compared to many peers, particularly those not involved in large acquisitions.
• The adjusted diluted EPS of $0.73 is a key metric for comparing operational performance, and its strength relative to peers would require a detailed comparison against banks of similar size and strategy.

Stakeholder Impact

• Shareholders: The adjusted earnings per share and continued loan and deposit growth are positive indicators for shareholder value. The integration of ANC is expected to drive future profitability.
• Employees: The successful integration of ANC and continued growth may lead to expanded opportunities, though acquisition-related costs could impact short-term operational focus.
• Customers: Continued focus on organic growth and relationship banking aims to benefit customers through enhanced product offerings and service. The integration of ANC may lead to changes in branch access and digital platforms.
• Creditors: Strong capital ratios and solid deposit growth provide a stable funding base, which is positive for creditors.

Next Steps

• Complete the integration of American National Corporation systems, branches, and accounts in October 2026.
• Continue to execute organic growth initiatives.
• Maintain disciplined expense management and credit practices.
• Demonstrate sustained profitable growth over time.

Key Dates

Recommendation

The company is executing well on its acquisition integration and organic growth strategies, leading to solid financial performance. However, the impact of nonrecurring acquisition costs and the ongoing integration process warrant a 'hold' recommendation until the full benefits are realized and sustained, and potential integration risks are further mitigated.

Keywords

Associated Banc-Corp, Q2 2026 Earnings, American National Corporation Acquisition, Loan Growth, Deposit Growth, Net Interest Income, Financial Performance, Banking