Associated Banc-Corp

What they do

Associated Banc-Corp is the largest bank holding company headquartered in Wisconsin, serving individuals and businesses through its nationally chartered commercial bank and trust company. It operates 184 branches across Wisconsin, Illinois, Minnesota, and Missouri, offering a broad range of banking products and services. The company is organized into three reportable segments: Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. Its primary revenue sources are net interest income from loans and investment securities and noninterest income from fees and other financial services.

Revenue drivers

• Commercial and business lending — Largest loan category, period-end loans of $15.3 billion at June 30, 2026, up 22% year-over-year. Generates net interest income and is a key growth driver.
• Consumer lending — Period-end loans of $12.1 billion at June 30, 2026, up 11% year-over-year, primarily driven by auto finance and other consumer products.
• Commercial real estate lending — Period-end loans of $9.0 billion at June 30, 2026, up 23% year-over-year, contributing to net interest income.
• Wealth management and capital markets fees — Noninterest income increased 24% in the first half of 2026, driven by higher wealth management fees and capital markets revenue from syndications, interest rate swaps, and foreign currency.

Recent performance

For Q2 2026, net income available to common equity was $121 million, or $0.63 per share, down slightly from $117 million in Q1 2026 and up from $108 million in Q2 2025. Excluding nonrecurring American National acquisition costs, adjusted earnings per share were $0.73. Net interest margin expanded to 3.17% from 3.10% in Q1 2026, and net interest income rose 20% quarter-over-quarter. Total period-end loans increased 15% from the prior quarter to $36.5 billion, and total period-end deposits grew 12% to $39.9 billion. Full-year 2025 results showed net income of $474.8 million versus $123.1 million in 2024, reflecting the prior year's balance sheet repositioning and improved margins.

Strategy

Management is focused on organic growth, including double-digit commercial and industrial loan growth and excellent household growth. The company is executing a balance sheet repositioning that began in Q4 2024, which included selling lower-yielding mortgage loans and investment securities to improve net interest margin. The acquisition of American National Corporation, which closed on April 1, 2026, is expected to expand the franchise and is largely coming in as expected. Management also emphasizes disciplined expense and credit management while pursuing strategic opportunities such as branch or asset acquisitions or divestitures.

Risks

• Economic downturn sensitivity — A contraction in economic activity or recession could adversely affect asset quality, deposit levels, and loan demand, impacting earnings.
• Interest rate fluctuations — Changes in interest rates, influenced by Federal Reserve policy, affect net interest income and margin; rapid rate movements could compress margins.
• Acquisition integration risk — The American National acquisition may not achieve expected cost savings or revenue synergies, and integration could divert management attention.
• Credit risk from loan portfolio — Deterioration in borrower credit quality, particularly in commercial real estate, could lead to higher provisions and net charge-offs.

Outlook

Management expects 2026 period-end loan growth of 18% to 20% compared to standalone 2025 results, driven by organic growth and the American National acquisition. They expect to maintain growth trajectory through steady execution of organic initiatives and successful integration of American National. The company anticipates continued improvement in deposit growth and net interest margin, while maintaining disciplined expense and credit management. No specific forward guidance was provided for full-year earnings, but management expressed confidence in sustainable profitable growth.