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Associated Banc-Corp reported third-quarter revenue of $720.7 million, up from $637.9 million a year earlier. On the basis used for the consensus comparison, revenue was $464.4 million against the consensus estimate of $464.0 million. Adjusted earnings per share matched the consensus at $0.76.
The company reported diluted earnings per share of $0.76, compared with $0.73 a year earlier. Its filing attributes growth in net interest income primarily to the American National acquisition and to lower funding costs, which fell faster than yields on earning assets. Noninterest income also rose, principally as acquisition-related service charges, deposit account fees and card-based fees increased.
Associated reported a gross margin of 64.4%, compared with 60.6% a year earlier, and an operating margin of 26.4%, compared with 24.2%. The company reported free cash flow of $320.3 million, up from $147.4 million a year earlier. Its filing says the provision for credit losses declined, primarily because of a decrease in the allowance for unfunded commitments.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $720.7 million | $637.9 million | 13.0% |
| Diluted EPS | $0.76 | $0.73 | 4.11% |
| Gross margin | 64.4% | 60.6% | 3.8 percentage points |
| Operating margin | 26.4% | 24.2% | 2.2 percentage points |
| Free cash flow | $320.3 million | $147.4 million | 117.2% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.76 | $0.76 | In line |
| Revenue | $464.4 million | $464.0 million | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Associated’s filing describes how the American National acquisition changed the bank’s balance sheet and income. It says the transaction increased average loans, investments and interest-bearing deposits compared with the year-earlier quarter. Alongside the acquired loans, the bank reported organic growth in commercial and industrial lending and real estate construction.
The filing says lower market rates reduced both earning-asset yields and funding costs, but the decline in funding costs was greater. Associated also describes a shift away from lower-yielding residential mortgages toward commercial and business loans, while its deposit mix moved toward lower-cost funding sources.
Compared with the preceding quarter, the filing says average loans grew as commercial and industrial lending and real estate construction increased, partly offset by declines in owner-occupied commercial real estate and residential mortgages. Associated says growth in lower-cost funding, including noninterest-bearing demand deposits, reduced its reliance on wholesale funding sources.
On fees, the filing attributes the year-over-year increase in noninterest income primarily to service charges, deposit account fees and card-based fees substantially driven by the acquisition. Compared with the preceding quarter, Associated says higher syndication fee revenue and increased earnings from private equity investments lifted noninterest income.
The filing says noninterest expense fell from the preceding quarter, primarily because acquisition-related expenses were lower and the bank recorded a gain on a sale of other real estate owned. For the first nine months of the year, Associated says acquisition costs included personnel expenses, contract termination costs, and legal and professional fees.
On credit quality, the filing says nonaccrual loans increased from year-end, reflecting organic increases in several lending categories as well as loans acquired from American National. Associated attributes the increase in year-to-date net charge-offs primarily to loans acquired in that transaction.