The EPS miss on a GAAP basis is partially explained by $13M in nonrecurring acquisition costs; adjusted EPS of $0.81 matches consensus. Watch for credit quality trends as nonaccrual loans rose 73% YoY and the CET1 ratio declined, and monitor the remaining ~$10M in expected nonrecurring acquisition costs in Q4 2026.
Price Chart
Executive Summary
Associated Banc-Corp reported Q3 2026 GAAP diluted EPS of $0.76, missing the consensus estimate of $0.81 by 5.8%. Net income available to common equity was $144M, up 18% YoY from $122M, driven by the American National Corporation acquisition which closed April 1, 2026. Net interest income grew 24% YoY to $377M and NIM expanded 16 bps to 3.20%, but nonaccrual loans rose 73% YoY to $183M and the CET1 ratio dipped to 10.38% from 10.49% in Q4 2025. The company raised its noninterest income growth guidance to 12%-14% (from 8%-10%) and tightened noninterest expense growth guidance to 19%-20% (from 20%-21%).
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.76 vs consensus $0.81 (-5.8% miss)
- Net income available to common equity $144M, up 18% YoY from $122M
- Net interest income $377M, +24% YoY; NIM 3.20%, +16 bps YoY
- Period-end total loans $36.5B, +18% YoY; total deposits $40.4B, +16% YoY
- Nonaccrual loans $183M, +73% YoY; NCOs 0.19% annualized vs 0.17% YoY
- CET1 ratio 10.38%, down from 10.49% in Q4 2025
- Repurchased $100M (3.2M shares) at weighted avg. price $30.88
- Raised 2026 noninterest income growth guidance to 12%-14% from 8%-10%
- Noninterest expense growth guidance tightened to 19%-20% from 20%-21%
- Effective tax rate guidance raised to 20%-22% from 19%-21%
Financial Impact
EPS miss of $0.05 vs consensus (-5.8%) on GAAP basis; adjusted EPS of $0.81 excluding $13M nonrecurring acquisition costs would have matched consensus
Risk Factors
- Nonaccrual loans increased 73% YoY to $183M, with commercial & industrial nonaccruals up 407% YoY
- CET1 ratio declined to 10.38% from 10.49% in Q4 2025, partly due to $100M share repurchase
- Integration of American National Corporation may continue to generate nonrecurring costs (~$10M remaining)
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000007789-26-000257 |
| Document: asb-20261022.htm | 0000007789-26-000257 |
| Document: asb3q2026earningspresent.htm | 0000007789-26-000257 |
| Document: 0000007789-26-000257-index-headers.html | 0000007789-26-000257 |
| Document: 0000007789-26-000257-index.html | 0000007789-26-000257 |
| Document: 0000007789-26-000257.txt | 0000007789-26-000257 |
| 8-K Data (Synthetic) | 0000007789-26-000257 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | Institutional Cluster | $30.21 | awaiting T+20 | — | $30.23 (+0.07%) |
Oct 22, 2026 4d ago | 8-K | $30.21 | awaiting T+20 | — | $30.23 (+0.07%) |
Oct 22, 2026 4d ago | Press Release | $30.21 | awaiting T+20 | — | $30.23 (+0.07%) |
Oct 1, 2026 25d ago | Press Release | $29.00 | awaiting T+20 | — | $30.23 (+4.24%) |
Sep 14, 2026 6w ago | 8-K | $30.32 $28.56 | ▼ −5.80% | ▼ −8.53% | $30.23 (−0.30%) |
Sep 2, 2026 7w ago | Press Release | $30.91 $29.00 | ▼ −6.18% | ▼ −4.99% | $30.23 (−2.20%) |
Aug 13, 2026 10w ago | Insider Cluster | $32.16 $30.04 | ▼ −6.59% | ▼ −4.84% | $30.23 (−6.00%) |
Aug 13, 2026 10w ago | Insider Cluster | $32.16 $30.04 | ▼ −6.59% | ▼ −4.84% | $30.23 (−6.00%) |
Aug 13, 2026 10w ago | Insider Cluster | $32.16 $30.04 | ▼ −6.59% | ▼ −4.84% | $30.23 (−6.00%) |
Aug 5, 2026 11w ago | Insider Cluster | $31.53 $30.58 | ▼ −3.01% | ▼ −2.41% | $30.23 (−4.12%) |
US Market Status
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