Associated's Net Interest Margin Reaches 3.20%

The Tip Desk · October 23, 2026 · 3 min read

Net interest income was $377 million as the margin expanded 3 bps sequentially and 16 bps year over year, with earnings of $0.76 a share.

Associated Banc-Corp (ASB), the largest bank holding company based in Wisconsin, reported net interest income of $377 million for the quarter ended September 30, 2026, up $7 million from the prior quarter and $72 million from a year earlier.

The net interest margin expanded 3 bps sequentially to 3.20% and 16 bps from the year-ago quarter. The average cost of total interest-bearing liabilities fell 36 bps from a year earlier to 2.67%, while the average yield on total loans was unchanged at 5.67%. The net free funds benefit was 0.53%.

Average total loans of $36.2 billion increased only 1% sequentially after a 15% sequential jump in the second quarter. Commercial and business lending rose $227 million from the prior quarter to $15.0 billion, commercial real estate lending rose $161 million to $9.1 billion, and consumer lending fell $61 million to $12.1 billion. Period-end total loans were $36.5 billion. The company said it continues to expect 2026 period-end loan growth of 18% to 20% versus standalone results for the year ended December 31, 2025.

Average deposits of $41.0 billion rose 1% sequentially. Core customer deposits increased $760 million from the prior quarter to $35.2 billion, and noninterest-bearing demand deposits rose $309 million to $7.4 billion. Period-end deposits were $40.4 billion. The company continues to expect 2026 period-end total deposit growth of 17% to 19% and core customer deposit growth of 19% to 21% versus 2025 standalone results.

Noninterest income of $87 million rose $7 million sequentially. Capital markets, net, increased $3 million from the prior quarter, service charges and deposit account fees rose $1 million, and card-based fees increased slightly. Mortgage banking, net, fell $1 million. The company now expects total noninterest income growth of 12% to 14% in 2026 versus 2025 standalone results.

Noninterest expense of $260 million decreased $12 million from the prior quarter and included $13 million of nonrecurring costs associated with the American National Corporation acquisition, which closed April 1, 2026. Personnel expense fell $7 million, legal and professional expense fell $8 million, and technology expense rose $10 million. The company now expects 2026 noninterest expense growth of 19% to 20% versus 2025 standalone results, including American National nonrecurring costs.

The provision for credit losses fell to $14 million from $19 million in the prior quarter. Net charge-offs were $18 million, and the allowance for credit losses on loans to total loans ratio slipped to 1.34%. Nonaccrual loans increased $33 million to $183 million, lifting the nonaccrual-to-total-loans ratio to 0.50% from 0.41%.

Net income available to common equity was $144 million, or $0.76 a share. Excluding nonrecurring items tied to American National, adjusted earnings were $154 million, or $0.81 a share. The company repurchased $100 million (3.2 million shares) of common stock at a weighted average price of $30.88. The CET1 capital ratio was 10.38% at September 30, 2026.

President and CEO Andy Harmening said the company completed the conversion of American National Corporation and that leadership is finalizing plans for additional strategic initiatives into 2027.