Associated Banc-Corp: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Oct. 22, 2026, Associated Banc-Corp (NYSE:ASB) reported net interest margin expansion, which measures the difference between interest earned on assets and interest paid on deposits. Growing core customer deposits, which are low-cost checking and savings accounts, provides predictable funding for long-term loan growth. This organic deposit gathering lowers reliance on wholesale funding, which refers to higher-cost institutional borrowing. Three things management said stand out.

1. Core Deposit Growth Drives Margin Expansion

Associated Banc-Corp added nearly $700 million in core customer deposits during the quarter, extending its household expansion to seven consecutive quarters. That deposit gathering lowers overall funding costs, so the bank doesn't have to rely on expensive borrowing.

We have grown our customer household base for 7 consecutive quarters And in Q3, we posted nearly $700 million in core customer deposit growth.
-- Andrew J. Harmening, President and CEO

2. Share Repurchases Resume as Capital Levels Strengthen

Management bought back $100 million of shares in the third quarter, marking its first major buyback program since 2021. The bank maintained a Common Equity Tier 1 (CET1) ratio, a regulatory metric measuring core capital strength against risk-weighted assets, of 10.38%, so it's able to return capital while funding loan growth.

With that in mind, we are pleased to return capital to our shareholders with $100 million in share repurchases during the quarter. The first major share buyback we have since I joined the bank in 2021.
-- Andrew J. Harmening, President and CEO

3. Commercial Pipeline Expansion Points to Lasting Growth

Commercial pipelines grew nearly 40% year over year, driven by expanding teams in major metropolitan markets like Kansas City and Dallas. Strong production in commercial and industrial (C&I) lending, which refers to loans made to businesses for operational purposes, helps remix the balance sheet toward higher-yielding assets.

We remain confident in the overall trajectory of our C&I business due to the strong trends we continue to see in our commercial pipelines, which are up nearly 40% versus the same period a year ago.
-- Andrew J. Harmening, President and CEO

Looking Ahead

Commercial expansion and steady deposit inflows keep driving profitability higher, and leadership isn't hiding its satisfaction about the bank's operational trajectory. Associated Banc-Corp relies on its core deposit franchise and disciplined underwriting to manage interest rate exposure.

We are keeping our funding obligations short to maintain repricing flexibility.
-- Derek S. Meyer, Chief Financial Officer

Management is finalizing its next three-year strategic road map to expand customer households and deepen commercial relationships across metropolitan markets.

We are still finalizing our plans, and you can expect a continuation of the sustainable organic growth that has become a defining characteristic of our company.
-- Andrew J. Harmening, President and CEO

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.