GET DAILY SIGNALSAssociated Banc-Corp (ASB) Delivers +18% Net Income Growth in Q3 2026
Key Takeaways
- Associated Banc-Corp reported third quarter 2026 net income of $146.6 million, up 18% from the prior-year period.
- Diluted earnings per share (EPS) came in at $0.76, while adjusted EPS of $0.81 topped the FactSet consensus estimate of $0.77.
- Net interest income (NII) rose 24% year over year to $377.3 million, and the net interest margin (NIM) expanded 16 basis points to 3.20%.
- Total deposits increased 16% to $40.4 billion, while period-end total loans grew 18% to $36.5 billion.
- The company repurchased $100 million of common stock and finished the quarter with a Common Equity Tier 1 (CET1) capital ratio of 10.38%.
Why These Results Matter
Associated Banc-Corp's third quarter 2026 results represent the first full quarter after the April 1, 2026 closing of its acquisition of American National Corporation. That transaction materially changed the bank's balance sheet and geographic reach. For investors, the report provides an early test of whether the combined organization can deliver organic growth, maintain margin expansion, and integrate the new operations without letting costs get out of line. The quarter also unfolded against ongoing interest-rate volatility, so the ability to control funding costs and adjust the loan mix remains a key focus. Overall, the numbers give a clearer picture of how the larger Midwest franchise is converting added scale into improved profitability.
The Quarter's Reported Figures
Associated Banc-Corp posted third-quarter 2026 net income of $146.6 million, an 18% increase from the same period last year. Net income available to common shareholders reached $143.7 million versus $121.9 million a year earlier. Diluted EPS was $0.76, while adjusted EPS of $0.81 exceeded the FactSet consensus of $0.77.
Total revenue climbed to roughly $464.4 million, up 20.2% year over year. Net interest income advanced 24% to $377.3 million, aided by a net interest margin of 3.20%—16 basis points higher than the prior-year quarter and 3 basis points better sequentially. Noninterest income rose 7% to $87.1 million.
Noninterest expense totaled $260.3 million, down $12 million from the previous quarter and including $13 million in acquisition-related costs. The provision for credit losses was $14 million, down from $19 million. Net charge-offs came in at $18 million, while nonaccrual loans moved to $183 million, or 0.50% of total loans. The allowance for credit losses on loans ratio stood at 1.34%. The bank repurchased $100 million of its common stock, and its CET1 capital ratio finished at 10.38%, comfortably above regulatory requirements. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Investor Reaction and Sentiment
Heading into the release, sentiment reflected cautious optimism centered on the American National integration and the bank's capacity to keep margins expanding amid rate swings. The adjusted EPS beat, combined with a third straight quarter of net customer household growth, supported the organic-growth story. The $100 million share repurchase further underscored management's confidence in its capital position. At the same time, investors continue to monitor credit quality after the modest rise in nonaccrual loans, and the stock remains sensitive to interest-rate expectations. Shares closed near $29.81 ahead of the report and have risen roughly 18% over the past twelve months.
What Lies Ahead
Management reaffirmed full-year 2026 guidance for the combined company. It continues to target 19% to 21% growth in net interest income, 18% to 20% period-end loan growth, and 20% to 22% growth in commercial and industrial loans—all measured against Associated's standalone 2025 results. On the funding side, total deposit growth is projected at 17% to 19%, with core customer deposit growth expected between 19% and 21%.
Several items will shape results in coming quarters. Commercial loan pipelines, which management indicated are up nearly 40% year over year, need to convert into sustained balance-sheet expansion even as payoffs stay elevated. Expense discipline will also matter, with full-year noninterest expense now expected to rise 19% to 20%, including acquisition costs that should moderate over time. Credit quality and capital deployment remain in focus as well. The slight increase in nonaccrual loans warrants attention, although the drop in criticized loans and lower provision offer some comfort. With adjusted return on tangible common equity above 15% and a solid CET1 ratio, the company appears positioned to continue returning capital while pursuing further strategic growth into 2027.
Using Tickeron’s AI Tools for Deeper Analysis
I often turn to Tickeron’s AI Screener when evaluating bank stocks like Associated Banc-Corp. The tool lets me quickly filter peers by fundamentals, technical patterns, and growth metrics, helping me confirm whether the quarter's margin expansion and loan growth stand out relative to the broader sector. It has become a regular part of my routine for spotting both opportunities and risks that might otherwise take longer to identify manually.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ASB's RSI Indicator ascends from oversold territory
The RSI Indicator for ASB moved out of oversold territory on September 24, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 19 of the 27 cases the stock moved higher. This puts the odds of a move higher at 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 32 of 58 cases where ASB's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 55%.
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on ASB as a result. In 60 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
The Moving Average Convergence Divergence (MACD) for ASB just turned positive on October 09, 2026. Looking at past instances where ASB's MACD turned positive, the stock continued to rise in 29 of 45 cases over the following month. The odds of a continued upward trend are 64%.
Following a +1.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where ASB advanced for three days, in 175 of 301 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
ASB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ASB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for ASB entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 35 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock slightly better than average.
The Tickeron Valuation Rating of 43 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.012) is normal, around the industry mean (1.246). P/E Ratio (10.132) is within average values for comparable stocks, (13.217). Projected Growth (PEG Ratio) (0.340) is also within normal values, averaging (1.190). Dividend Yield (0.033) settles around the average of (0.035) among similar stocks. P/S Ratio (3.203) is also within normal values, averaging (3.738).
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. ASB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 95 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a regional bank
Industry RegionalBanks
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