SEC Filings

Associated Banc-Corp Earns $144 Million, Lifts Fee Forecast As Troubled Loans Climb To $183 Million

The Green Bay bank raised its 2026 fee-income outlook to 12% to 14% growth while nonaccrual loans rose from the prior quarter.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Associated Banc-Corp Earns $144 Million, Lifts Fee Forecast As Troubled Loans Climb To $183 Million

Associated Banc-Corp, the Green Bay, Wisconsin, bank holding company, earned $144 million, or $0.76 a share, in the third quarter, up from $121 million, or $0.63, in the second quarter, the company said Thursday in an 8-K filing. Troubled loans grew over the same stretch, and management raised its fee-income forecast for the year.

Profit up, deal costs fading

A year earlier the bank earned $122 million, or $0.73 a share. Excluding one-time costs tied to its purchase of American National Corporation, which closed April 1, 2026, adjusted earnings were $154 million, or $0.81 a share.

Net interest income, the gap between what the bank earns on loans and pays on deposits, was $377 million, up 24% from a year earlier. Net interest margin rose to 3.20%, a 3 basis point (0.03 percentage point) increase from the prior quarter.

Acquisition costs in noninterest expense were $13 million in the quarter. Management expects roughly $10 million more by year-end, according to the earnings presentation, which put the total at about $48.5 million, down about $4 million from its earlier estimate. The acquired bank's accounts, systems and branches moved onto Associated's platform in early October.

Nonaccrual loans keep rising

Nonaccrual loans, which have stopped accruing interest, reached $183 million from $150 million in the prior quarter. The ratio to total loans rose to 0.50% from 0.41%.

Net charge-offs, loans written off as uncollectible, were $18 million, down from $23 million in the second quarter. The provision for credit losses was $14 million, against $19 million.

A bigger fee forecast and $100 million of buybacks

Associated now expects 2026 noninterest income growth of 12% to 14%, up from 8% to 10%. It trimmed its expense growth outlook to 19% to 20% from 20% to 21%, and lifted its expected tax rate to 20% to 22% from 19% to 21%. Loan, deposit and net interest income guidance was unchanged.

The bank repurchased 3.2 million shares for $100 million, at a weighted average price of $30.88. Its CET1 capital ratio, a core measure of loss-absorbing capital, was 10.38%.

Associated, whose main subsidiary Associated Bank serves individuals and businesses through branches in Wisconsin, Illinois, Minnesota and Missouri, is also planning ahead. CEO Andy Harmening said the leadership team is finalizing the next wave of strategic initiatives to carry momentum into 2027 and beyond, with details coming in the months ahead.

The presentation lays out growth plans for 2027 through 2029, focused on household and deposit growth, commercial relationships and major metro markets.

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