A Wisconsin-based bank holding company, Associated Banc-Corp runs Associated Bank, which serves individuals and businesses across dozens of branches in Wisconsin, Illinois, Minnesota, and Missouri. Its roots reach back to 1861, and it took its name in 1992 after several long-standing Wisconsin banks chose to "associate" together. Its evergreen-tree logo pays quiet tribute to the region's pine lumber industry, which helped the founding banks grow.
The American National acquisition closed, lifting revenue 22.7% to $450.4M and total assets 17.8% to $51.8B, while net interest margin widened to 3.10%.
The American National acquisition reshaped the balance sheet in its first quarter. rose 22.7% to $450.4 million and widened 9 to 3.10%, driven by the acquired loan portfolio and organic commercial loan growth, though fell 3.1% to $0.63 as acquisition-related costs and a higher share count weighed on the . The combined company is larger and more profitable at the operating level, but integration costs and a 49% increase in to $150 million will define the next several quarters.
Key takeaways
The American National Corporation acquisition closed on April 1, 2026, adding loans and deposits that drove a 17.8% increase in total assets to $51.8 billion and a 12.8% sequential increase in to $5.6 billion.
widened 9 to 3.10%, as the acquired loan portfolio and organic commercial and industrial lending shifted the asset mix toward higher-yielding loans while deposit costs declined.
Section summaries
Management's Discussion and Analysis
Net income rose 14% YTD to $243M, driven by the American National acquisition and organic commercial loan growth, expanding NIM to 3.10%.
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Average loans grew 11% YTD to $33.6B, fueled by the American National acquisition and organic commercial and industrial lending.
rose 22.7% to $450.4 million, with up 16% year-to-date to $677.2 million and noninterest income up 24% year-to-date to $156.3 million, helped by higher wealth management fees, capital markets revenue, and the absence of a prior-year mortgage portfolio sale loss.
fell 3.1% to $0.63, as a 17% increase in noninterest expense to $491.0 million year-to-date — driven by nonrecurring acquisition-related costs and higher personnel expenses — and a larger share count from the all-stock deal offset the gains.
Total rose 49% from year-end 2025 to $150.0 million, reflecting both organic credit migration and the addition of acquired loans, while the remained relatively stable at $30.4 million year-to-date.
Total deposits grew 12% from year-end 2025 to $39.9 billion, and available liquidity sources of $18.0 billion provided 170% coverage of uninsured and uncollateralized deposits.
What changed
The Q1 2026 flag to watch the combined-company in Q2 2026 is now answered: the margin widened to 3.10%, up from 3.03% in Q1 2026, indicating the acquired portfolio was accretive to the margin in the first quarter of combination.
The Q1 2026 flag on post-merger materialized: nonaccrual loans rose 49% from year-end 2025 to $150.0 million, driven by both and acquired loans, though the provision remained stable at $30.4 million year-to-date.
The Q1 2026 flag on integration costs was confirmed: noninterest expense rose 17% year-to-date to $491.0 million, largely due to nonrecurring acquisition-related costs, which weighed on despite the increase.
The FY 2025 flag on loan growth acceleration is partially resolved: average loans grew 11% year-to-date to $33.6 billion, but the increase was primarily acquisition-driven rather than purely organic, with the acquired portfolio accounting for most of the step-up from the prior 3-4% rate.
What to watch
Nonaccrual loan trajectory in Q3 2026: whether the $150.0 million level stabilizes or rises further as the acquired loan portfolio seasons and organic credit migration continues, and whether the allowance for credit losses needs to be increased.
Integration cost runoff: whether the nonrecurring acquisition-related costs that drove the 17% year-to-date increase in noninterest expense decline in Q3 2026, revealing the underlying of the combined company.
sustainability: whether the 3.10% margin holds or expands further as the full quarter benefit of the acquisition flows through, or whether deposit pricing pressure and loan yield compression begin to narrow it.
recovery: whether can return to growth in Q3 2026 as the prior-year quarter no longer benefits from the one-time tax items that inflated Q3 2025 EPS to $0.73.
increased 16% YTD to $677.2M, with widening 9 to 3.10% due to asset mix shift and lower deposit costs.
Noninterest income rose 24% YTD to $156.3M, primarily from higher wealth management fees, capital markets , and the absence of a prior-year loss on a mortgage portfolio sale.
Noninterest expense increased 17% YTD to $491.0M, largely due to nonrecurring acquisition-related costs and higher personnel expenses.
Total increased 49% from year-end 2025 to $150.0M, driven by and acquired loans, while the remained relatively stable at $30.4M.
Total deposits grew 12% from year-end 2025 to $39.9B, and available liquidity sources totaled $18.0B, providing 170% coverage of uninsured and uncollateralized deposits.
Quantitative and Qualitative Disclosures About Market Risk
Information required by this item is set forth in Item 2 under the captions Quantitative and Qualitative Disclosures about Market Risk and Interest Rate Risk. 78 Table of Contents
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Information required by this item is set forth in Item 2 under the captions Quantitative and Qualitative Disclosures about Market Risk and Interest Rate Risk.
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Table of Contents
The information required by this item is set forth in Part I, Item 1 under Note 12 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings of the notes to consolidated financial statements.
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The information required by this item is set forth in Part I, Item 1 under Note 12 Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings of the notes to consolidated financial statements.