8-K: Associated Banc-Corp Reports Q1 2026 Earnings

Associated Banc-Corp announced Q1 2026 net income of $117 million, or $0.70 per share, with growth in C&I loans and customer deposits, alongside the completion of its American National Corporation acquisition.

Summary

• Associated Banc-Corp reported first quarter 2026 net income available to common equity of $117 million, or $0.70 per common share.
• This compares to $134 million, or $0.80 per share, in the fourth quarter of 2025 and $99 million, or $0.59 per share, in the first quarter of 2025.
• Total period end loans grew to $31.8 billion, a 2% increase from the prior quarter and a 5% increase year-over-year.
• Commercial & Industrial (C&I) loans specifically increased by 5% from the prior quarter to $12.3 billion.
• Total period end deposits reached $35.7 billion, a 1% increase from the prior quarter and a 2% increase year-over-year.
• Core customer deposits grew by 3% from the prior quarter to $30.4 billion.
• Net interest income was $307 million, a 1% decrease from the prior quarter but a 7% increase year-over-year.
• The company completed the acquisition of American National Corporation on April 1, 2026, and expects 2026 loan and deposit growth of 17% to 19% including this acquisition.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, highlighting continued growth and strategic acquisition completion, though with a slight sequential dip in earnings compared to the record prior quarter.

Positives

• Maintained growth momentum with over $500 million in C&I loan growth in Q1 2026.
• Achieved strong customer household growth.
• Steady credit performance observed.
• Completed the acquisition of American National Corporation, accelerating growth trajectory.
• Total period end loans increased by 5% compared to the first quarter of 2025.
• Commercial and business lending increased by $1.5 billion from the same period last year.
• Core customer deposits increased by $1.3 billion from the same period last year.
• Net interest income increased by 7% compared to the first quarter of 2025.

Negatives

• Net income available to common equity decreased to $117 million in Q1 2026 from $134 million in Q4 2025.
• Diluted earnings per common share decreased to $0.70 in Q1 2026 from $0.80 in Q4 2025.
• Net interest income decreased by 1% from the prior quarter.
• Net interest margin decreased by 3 basis points from the prior quarter to 3.03%.
• Noninterest income decreased by $4 million from the prior quarter.
• Nonaccrual loans increased by $10 million from the prior quarter to $111 million.
• The effective tax rate increased to 21.75% in Q1 2026 from 15.82% in Q4 2025.

Risks

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

Future Outlook

For 2026, the company expects period end loan growth of 17% to 19% and period end total deposit growth of 17% to 19%, including the impact of the American National Corporation acquisition. Core customer deposit growth is expected to be 19% to 21%. The company expects total noninterest income growth of 8% to 10% in 2026. The annual effective tax rate is expected to be between 19% and 21% in 2026.

Management Comments

• After posting the strongest bottom line in company history in 2025, we maintained our growth momentum in the first quarter of 2026, with over $500 million in C&I loan growth, strong customer household growth, and steady credit performance.
• We've also taken proactive steps to accelerate our growth trajectory in major metro markets by announcing several key hires, expanding our commercial presence, and closing on our acquisition of American National Corporation.
• As we look to the remainder of 2026, we're well-positioned to navigate the current environment thanks to the resilience and stability of our Midwestern markets, our enhanced profitability profile, a solid capital position, and our ability to attract and deepen relationships.
• We look forward to providing additional updates on Associated's growth journey along the way.

Industry Context

StockSavvy.ai notes that Associated Banc-Corp's Q1 2026 results reflect a continued focus on organic growth, particularly in commercial and industrial lending, alongside strategic acquisitions to expand market presence. This aligns with broader trends in the regional banking sector of consolidating and expanding into key metropolitan areas to capture market share.

Comparison to Industry Standards

• Associated Banc-Corp's CET1 capital ratio of 10.47% exceeds the Basel III well-capitalized regulatory benchmarks.
• The company's total capital ratio of 13.02% also remains well above regulatory requirements.
• While specific peer comparisons are not detailed in the filing, the reported loan and deposit growth rates are generally in line with or slightly above the average for regional banks in the Midwest.
• The net interest margin of 3.03% is competitive within the current interest rate environment for regional banks.

Stakeholder Impact

• Shareholders: The acquisition of American National Corporation is expected to accelerate growth, potentially leading to increased shareholder value over time. Continued loan and deposit growth supports the company's financial stability.
• Employees: The integration of American National Corporation may lead to some organizational changes, but also presents opportunities for growth and development within a larger entity.
• Customers: The acquisition aims to enhance product and service offerings and expand geographic reach, potentially benefiting customers through a broader network and improved financial solutions.
• Creditors: The company's strong capital position and continued growth in deposits provide a stable funding base, which is favorable for creditors.

Next Steps

• Continue integration of American National Corporation.
• Provide updated 2026 net interest income and noninterest expense outlook following finalization of purchase accounting adjustments.
• Host conference call for investors and analysts to discuss Q1 2026 results.

Key Dates

Recommendation

The filing shows steady operational performance and successful completion of a strategic acquisition, which are positive indicators. However, the sequential decline in earnings and the ongoing integration risks associated with the acquisition warrant a cautious approach. A 'hold' recommendation reflects the balance between continued growth potential and the uncertainties of integration and market conditions.

Keywords

Associated Banc-Corp, 8-K, Q1 2026 Earnings, Financial Results, Loan Growth, Deposit Growth, Acquisition, American National Corporation