Associated Banc-Corp (ASB) Q1 2026 earnings summary

Executive summary

• Achieved record annual and Q1 2026 net income, with Q1 net income at $119.6 million (up 18% year-over-year), EPS of $0.70, and strong momentum from relationship loan and deposit growth, customer acquisition, and solid credit performance.

• Completed the acquisition of American National Corporation (ANC) on April 1, 2026, adding $5.2 billion in assets, expanding presence in Omaha, Twin Cities, and other strategic metro markets, and launching new C&I offices in Dallas and Kansas City.

• Focused on disciplined growth, integration of acquisitions, and leveraging investments in digital, product, and marketing capabilities, with increased marketing spend and new product launches.

Financial highlights

• Q1 2026 EPS was $0.70; net interest income was $307 million (up 7% year-over-year), with net interest margin at 3.03% (up 6 bps year-over-year); total period end loans reached $31.8 billion (+2% sequentially, +5% year-over-year), and total deposits were $35.7 billion (+0.5% sequentially, +1.5% year-over-year).

• Core customer deposits rose 4.5% year-over-year; noninterest income was $76 million, up year-over-year but down $4 million from Q4; noninterest expense was $219 million, up 4% year-over-year but flat sequentially.

• Provision for credit losses was $11 million, with allowance for credit losses at 1.34% of loans; net charge-off ratio at 0.07%.

• Book value per share was $29.04; tangible book value per share was $22.23, up nearly $2 year-over-year.

Outlook and guidance

• Expect 2026 period-end loan growth of 17%-19% and deposit growth of 17%-19% (core customer deposits 19%-21%) including the American National acquisition; C&I loans projected up 20%-22%.

• Net interest income growth forecasted at 8%-10% for 2026; updated guidance for NII now 7%-8% due to asset sensitivity and fewer expected rate cuts.

• Expense growth for legacy business expected to remain at 3%; annual effective tax rate expected between 19%-21%.

• Dividend payout ratio at 34.29%; $100 million share repurchase authorization announced for 2026.