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    ASB
    Earnings call· Mar 2026(Q1 FY26)

    ASSOCIATED BANC-CORP Q1 FY26 earnings call ASB

    Apr 23, 2026 Source

    Executive summary

    Associated Banc-Corp Q1 FY26 — Strong Loan and Deposit Growth, ANB Integration on Track

    Associated Banc-Corp delivered strong Q1 FY26 results, marked by robust loan and deposit growth, particularly in C&I, and continued expansion of its customer base. The company is actively integrating the American National Bank acquisition, which closed on April 1, with initial expectations for a smooth transition and positive impact on NIM. Management expressed confidence in achieving full-year growth targets for legacy ASB, driven by strategic investments in new markets and talent acquisition.

    Highlights

    6

    • Annualized Q1 checking household growth of 2.2%.

    • Period-end C&I loan growth of over $500 million, a 4.6% increase point-to-point versus December 31.

    • Total loans grew by over $600 million or 2% versus the prior quarter.

    • Core customer deposits grew by over $800 million (3% QoQ) and 4.5% relative to the same period a year ago.

    • Net interest income of $307 million, increased 7% relative to Q1 of 2025.

    • Net charge-off ratio of just 7 basis points for the quarter.

    Concerns

    4

    • Total delinquencies increased to $88 million, with $43 million driven by 2 managed credits.

    • Net interest income of $307 million dipped slightly from the record quarterly NII posted in Q4.

    • Net interest margin decreased 3 basis points to 3.03% for the quarter.

    • Adjusted efficiency ratio increased slightly from 55.2% to 55.8%.

    Guidance & targets

    9
    CategoryTargetConfidence
    2026 Period-End Loan Growth (incl. ANB)
    17%-19%
    high materiality
    High
    2026 Period-End Total Deposit Growth (incl. ANB)
    17%-19%
    high materiality
    High
    2026 Period-End Customer Deposit Growth (incl. ANB)
    19%-21%
    high materiality
    High
    2026 Net Interest Income Growth (incl. ANB)
    8%-10%
    high materiality
    High
    Net Interest Margin Impact from ANB Acquisition
    5-10 bps increase
    medium materiality
    Medium
    Legacy ASB Net Interest Income Growth
    7%-8%
    high materiality
    High
    Legacy ASB Noninterest Expense Growth
    3%
    medium materiality
    High
    C&I Loan Growth
    High end of 9%-10%
    high materiality
    High
    Household Growth
    2.5%
    medium materiality
    Medium

    Operational metrics

    12
    Checking household growth
    2.2%annualized
    Q1 FY26

    An encouraging result in what is typically a slower season for checking acquisition.

    Marketing acquisition spend growth
    23%YoY
    Q1 FY26

    Reflects efforts to accelerate customer growth.

    Relationship Manager (RM) hires growth
    44%
    Since CEO started

    Indicates significant expansion of the banking team.

    Legacy ASB Net Interest Income Outlook
    7%-8%vs. original guidance of 5.5%-6.5%
    FY26

    Improved outlook due to no rate cuts and asset sensitivity.

    Legacy ASB Noninterest Expense Growth
    3%
    FY26

    Management expects to manage expenses to this target.

    Legacy ASB Noninterest Income Outlook
    High end or above original range
    FY26

    Positive outlook for stand-alone ASB noninterest income.

    C&I loan pipeline growth
    20%YoY
    Q1 FY26

    Strong pipeline supports bullish outlook for C&I loan growth.

    CD promotional rate duration
    7 months
    Q1 FY26

    Strategy to front-load production and fund strong loan growth, maintaining short-term contractual funding.

    HSA business organic growth
    Fastest organic growth in the country
    Q1 FY26

    Fueled by retail and commercial teams.

    Customer attrition rate
    One of the lowest in the business
    Q1 FY26

    Attributed to products that keep and deepen customer relationships.

    Tangible book value per share
    $22.23up nearly $2 vs. Q1 FY25
    Q1 FY26

    Continued expansion on a quarterly basis.

    TCE ratio
    8.27%down 2 bps vs. Q4 FY25
    Q1 FY26

    Up 31 bps vs. Q1 FY25.

    Industry KPIs

    11
    MetricValueDetails
    Loans$635 millionUSD
    Deposits$179 millionUSD
    Cet1 ratio10.47%%
    Fee income lines$76 millionUSD
    Allowance reserves$425 millionUSD
    Net interest income$307 millionUSD
    Net interest margin3.03%%
    Net charge offs npls7 bpsbps
    Total operating expenses$219 millionUSD
    Provision for credit losses$11 millionUSD
    Efficiency ratio operating leverage55.8%%

    Deals & partnerships

    1
    American National BankAcquisition to expand presence in Omaha and deepen presence in Twin Cities, providing opportunities to deepen relationships with existing customers through an expanded product set and capabilities.

    Closed on April 1. Over 40 legacy Associated colleagues were on the ground in Omaha post-close. Completed culture surveys, repositioned securities portfolio, and completed colleague decisioning. Jason Hanson appointed business segment leader for Commercial Banking and Market President for Nebraska and Western Iowa.

    Risks & headwinds

    4
    Macro uncertaintyOngoing

    Not quantified

    Mitigation: Disciplined approach to risk management, enhanced profitability profile, solid capital position, and resilience of Midwestern markets.

    Elevated interest ratesOngoing

    Not quantified

    Mitigation: Specific attention to effects on the portfolio, including ongoing interest rate sensitivity analysis bank-wide.

    Inflation pressures, shifting labor markets, tariffsOngoing

    Not quantified

    Mitigation: Diligence in monitoring credit stressors to ensure current underwriting reflects the impact of these economic concerns.

    Increase in total delinquenciesQ1 FY26

    $88 million total, with $43 million driven by 2 managed credits

    Mitigation: Management remains comfortable with benign delinquency trends and expects the extension process for the 2 managed credits to carry into Q2.

    What to watch in Q2 FY26

    5

    ANB Acquisition Purchase Accounting Adjustments

    Later this quarter (Q2 FY26)
    CurrentIn progress
    TargetFinalized

    Why it matters

    Finalization will provide updated outlook for NII and noninterest expense, clarifying the full financial impact of the acquisition.

    We expect to update this 2026 outlook with estimates for the net interest income and noninterest expense categories following the finalization of purchase accounting adjustments, which are expected to be completed later this quarter.

    Q&A highlights

    6

    How should we think about Q2 margin, considering ANB integration and securities repositioning?

    Management expects a potential NIM increase of 5-10 basis points from ANB once purchase accounting marks are finalized in Q2. No surprises have been observed so far regarding the acquisition's impact.

    “we had initially forecasted a potential increase of 5 to 10 basis points. That's where we would sit today, Jared, as the potential impact once we get through the marks in the second quarter.”

    asked by Jared David Shaw · answered by Andrew Harmening

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Growth Initiatives

    Associated Banc-Corp is executing a multi-pronged growth strategy, including significant investments in new markets like Dallas and Omaha, and expanding teams in Kansas City. The company launched a new national franchise banking vertical and hired key talent, such as Lisa Buto for Private Banking and Shaun Coard for Franchise Banking, to drive momentum in commercial and wealth segments. These efforts are intended to accelerate growth into 2027 and beyond, building on successful models developed in existing markets.

    02

    American National Bank Integration

    The acquisition of American National Bank (ANB) closed on April 1, with integration progressing as planned. The conversion of accounts, systems, and branches is expected in late Q3 FY26. Management noted strong cultural alignment and no major surprises post-close, with the deal expected to deepen presence in Omaha and Twin Cities. The company has already completed culture surveys, repositioned ANB's securities portfolio, and made key leadership appointments like Jason Hanson as Market President for Nebraska and Western Iowa.

    03

    Customer Acquisition and Retention

    The company achieved annualized checking household growth of 2.2% in Q1 FY26, an encouraging result for a typically slower season. This growth is driven by investments in digital experience, product offerings, and marketing, with marketing acquisition spend up 23% year-over-year. The focus is on attracting and deepening customer relationships to build a stronger pipeline into Private Wealth and decrease reliance on higher-cost wholesale funding sources. Customer attrition is noted as one of the lowest in the business.

    04

    Credit Quality Stability

    Despite ongoing macro uncertainty🌐, credit asset quality remained strong in Q1 FY26. Total criticized loans decreased by $29 million, and the net charge-off ratio was a low 7 basis points. The allowance for credit losses (ACL) increased by $6 million to $425 million, primarily due to commercial and business lending and CRE construction loan growth, with the ACL ratio remaining stable at 1.34%. Management continues to monitor credit stressors and interest rate sensitivity across the portfolio.

    05

    Balance Sheet Management and Funding Strategy

    Associated Banc-Corp saw strong loan growth in Q1, particularly in C&I, which outpaced the natural run rate of deposit gathering. To match this, the company accelerated its funding, including raising CD rates for a 7-month promotional period. This strategy, combined with a short-term contractual liability profile, positions the bank favorably in the current interest rate environment. Management is bullish on driving incremental core customer deposit growth in the second half of the year through household growth momentum and enhanced commercial deposit gathering capabilities.

    AI-generated summary of the company’s earnings call. Not investment advice.