Summary of Associated Banc-Corp (NYSE:ASB) M&A Announcement Company and Industry - **Company**: Associated Banc-Corp - **Acquisition Target**: American National Corporation, a community bank based in Omaha, Nebraska - **Industry**: Banking and Financial Services Core Points and Arguments 1. **Merger Announcement**: Associated Banc-Corp announced a merger with American National Corporation, marking a significant step in expanding its Midwestern banking franchise [2][4] 2. **Strategic Rationale**: The merger aims to enhance market presence in key areas, particularly Omaha and the Twin Cities, and supports long-term organic growth strategies [4][5] 3. **Market Expansion**: The transaction allows Associated to enter the Omaha market with a number two deposit market share and strengthens its position in the Twin Cities with an additional $800 million in deposits [5][9] 4. **Financial Impact**: Expected EPS accretion in 2027, modest tangible book dilution, and a short earnback period of just over two years. The deal is valued at approximately $604 million [7][11] 5. **Cultural Fit**: Both companies share a conservative credit culture and a commitment to community engagement, which is expected to facilitate a smooth integration [6][14] 6. **Transaction Structure**: The merger is structured as an all-stock transaction with a fixed exchange ratio, where American National shareholders will receive 36.25 shares of Associated stock for each share of American National stock [6][7] 7. **Regulatory Approval**: The transaction has been approved by the boards of both companies and is expected to close in the second quarter of 2026, pending regulatory approvals [8] Additional Important Insights 1. **Growth Metrics**: Associated has seen net household growth each quarter in 2025, with a total shareholder return of 53% since the announcement of its strategic plan [4][11] 2. **Market Characteristics**: Omaha and the Twin Cities are highlighted as attractive markets with solid population growth and favorable economic conditions, representing nearly 20% of Associated's total deposit base post-merger [9][10] 3. **Cost Savings**: The merger is expected to achieve cost savings of 25% or $29.2 million from American National's expense base, enhancing profitability metrics [11][12] 4. **Credit Quality**: American National has a strong credit history with low net charge-offs, which aligns with Associated's conservative credit culture [25][43] 5. **Future Growth Opportunities**: The merger is seen as a continuation of Associated's organic growth strategy, with potential for further market share expansion in Omaha and the Twin Cities [22][54] 6. **Consumer Strategy**: The acquisition will enhance Associated's consumer product offerings, particularly in the auto lending space, which is a significant part of American National's portfolio [40][78] This summary encapsulates the key points from the conference call regarding the merger between Associated Banc-Corp and American National Corporation, highlighting the strategic, financial, and operational implications of the transaction.

Transaction Overview - Associated Banc-Corp (ASB) will acquire American National Corporation (ANC) in a 100% stock transaction[16] - The aggregate consideration to ANC is $604 million[16] - Associated will issue 36250 ASB shares for each ANC share[16] - Pro forma ownership will be 88% Associated and 12% American National[16] Financial Impact - The deal is expected to result in 20% EPS accretion in 2027E[15] - TBVPS dilution at close is projected to be 12% with a 225-year earn-back period[15] - Cost savings of 25% of ANC's noninterest expense base are anticipated[15,46] - The transaction is expected to be accretive to CET1 at close[15] Strategic Rationale - The acquisition provides entry into the Omaha MSA with the 2 deposit market share rank[15] - It strengthens presence in the Minneapolis / St Paul MSA with 10 combined deposit market share rank[15] - American National has $53 billion in assets and $47 billion in deposits as of 9/30/2025[19,21] - American National's deposit base consists of 21% NIB-Demand, 45% Savings & MMA, 16% IB-Demand, 4% Brokered CDs and 14% Other Time deposits[21]

Core Viewpoint - Associated Banc-Corp and American National Corporation have entered into a definitive agreement for a merger, enhancing their market presence in the Midwest and expanding their client base [1][3][4]. Company Overview - Associated Banc-Corp, headquartered in Green Bay, Wisconsin, is the largest bank in Wisconsin with total assets of $44 billion and nearly 200 branches across multiple states [2][9]. - American National Corporation, based in Omaha, Nebraska, has total assets of $5.3 billion and operates 33 branches primarily in Nebraska, Minnesota, and Iowa [2][10]. Merger Details - The merger will result in American National shareholders receiving 36.250 shares of Associated stock for each share of American National stock, valuing the transaction at approximately $604 million based on Associated's closing price of $26.29 as of November 28, 2025 [4]. - The merger is expected to close in the second quarter of 2026, pending regulatory approvals and customary closing conditions [4]. Market Impact - Post-merger, Associated will become the 2 bank in the Omaha Metropolitan Statistical Area (MSA) and the 10 bank in the Minneapolis / St. Paul MSA by deposit market share [3][4]. - This partnership is seen as a strategic move to deepen Associated's presence in key markets and enhance its growth strategy [4]. Leadership Statements - Leadership from both companies expressed excitement about the merger, highlighting a shared commitment to customer service and community support [4].

Core Insights - Associated Banc-Corp announced the appointment of Jay Sodey as the new Madison market president, effective January 1, 2026, succeeding Dave Stein who will retire at the end of 2025 [1][2]. Company Leadership Transition - Jay Sodey has 22 years of banking experience and joined Associated Bank in 2005, overseeing retail banking in the Greater Madison market [2]. - Sodey will lead a team of approximately 370 colleagues across 32 locations and will focus on sales growth, marketing strategies, community engagement, and cultural development [2][3]. - Dave Stein expressed confidence in Sodey's ability to continue driving the market forward, highlighting Sodey's instrumental role in the bank's success [2][3]. Company Overview - Associated Banc-Corp has total assets of $44 billion and is the largest bank holding company based in Wisconsin, operating nearly 200 banking locations across Wisconsin, Illinois, Minnesota, and Missouri [4]. - The company also has loan production offices in several states, including Indiana, Kansas, Michigan, New York, Ohio, and Texas [4].

Core Points - Associated Banc-Corp (NYSE: ASB) is scheduled to meet with investors at the Piper Sandler Financial Services Conference from November 10-12, 2025 [1] - The company has total assets of $44 billion and is the largest bank holding company based in Wisconsin, operating nearly 200 banking locations across multiple states [2] Company Overview - Associated Banc-Corp is headquartered in Green Bay, Wisconsin, and serves over 100 communities in Wisconsin, Illinois, Minnesota, and Missouri [2] - The company also has loan production offices in Indiana, Kansas, Michigan, New York, Ohio, and Texas [2] - Associated Bank, N.A. is an Equal Housing Lender and a Member of FDIC [2] Recent Developments - Associated Banc-Corp has decreased its prime rate from 7.25% [4] - The company announced new leadership in the Twin Cities and plans to enhance banking services with a new branch in the IDS Center, effective January 1, 2026 [5]

Core Insights - Associated Banc-Corp announced the appointment of Mike Lebens as the new Twin Cities market president effective January 1, 2026, succeeding Paul Schmidt [1][3] - The grand opening of the new IDS Center branch in downtown Minneapolis marks a significant investment in the market, enhancing customer experience and expanding the bank's footprint [2][4] Leadership Transition - Mike Lebens joined Associated in May 2024 from Wells Fargo Bank, where he held various leadership roles for 22 years [2] - Paul Schmidt, the current market president, announced his retirement plans for the end of 2025, having served in his role since 2022 [3] Branch Opening Details - The new IDS Center branch features 1,665 square feet of retail space and over 6,000 square feet of office space, representing a 400 square feet increase from the previous Baker Center branch [4][7] - The branch will offer a comprehensive range of banking services, including personal banking, commercial banking, wealth solutions, commercial real estate services, and private banking [6] Market Presence and Strategy - Associated Banc-Corp is expanding its presence in the Greater Twin Cities area, with plans to move its Minneapolis offices to the IDS Center's 43rd floor, which will more than double its current footprint [8] - The bank operates nearly 200 locations across Wisconsin, Illinois, Minnesota, and Missouri, with total assets of $44 billion, making it the largest bank holding company based in Wisconsin [9]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Performance - Net income for the quarter ended September 30, 2025, was $337.6 million, compared to $284.8 million for the same period in 2024 [184]. - Earnings per common share (basic) increased to $1.98 from $1.83 year-over-year [184]. - Return on average assets improved to 1.04% from 0.93% year-over-year [184]. - The efficiency ratio improved to 56.67% from 59.86% year-over-year, indicating better cost management [184]. - The Corporation's net income for the quarter ended September 30, 2025, was $337,648 thousand, compared to $284,760 thousand for the same period in 2024, reflecting a year-over-year increase of 18.5% [277]. - Adjusted net income available to common equity for the quarter was $333,979 thousand, up from $281,091 thousand in the previous year [277]. Loan and Deposit Growth - Average loans increased by $925.5 million, or 3%, to $30.5 billion, driven by commercial and business lending and auto finance loans [183]. - Average deposits rose by $1.5 billion, or 5%, to $34.6 billion, with increases in all deposit types except money market and brokered CDs [183]. - Total loans amounted to $30,750,460 thousand with a net interest margin of 5.50% for the quarter [188]. - Total deposits reached $34.88 billion as of September 30, 2025, representing an increase of $1.3 billion, or 4%, from $33.55 billion a year ago [243]. - The total loan balance as of September 30, 2025, was $30.95 billion, up from $29.99 billion a year earlier, indicating a growth of approximately 3.2% [237]. Interest Income and Expenses - Net interest income increased by $114.2 million, or 15%, to $891.2 million, with a net interest margin of 3.02%, up from 2.77% [183]. - Noninterest income rose by $9.7 million, or 5%, to $207.0 million, primarily due to increased capital markets revenue [183]. - Noninterest expense increased by $42.1 million, or 7%, to $636.2 million, driven by higher personnel expenses and increased healthcare costs [183]. - Fully tax-equivalent net interest income increased by $115.7 million, or 15%, compared to the first nine months of 2024 [193]. - Noninterest income for the nine months ended September 30, 2025, was $207,019 thousand, reflecting a 5% increase compared to $197,365 thousand in the same period last year [192]. Credit Quality and Loss Provisions - Provision for credit losses decreased to $47.0 million from $68.0 million, reflecting nominal credit movement and macroeconomic trends [183]. - The provision for loan losses for the year-to-date period was $49.5 million, down from $67 million in the same period last year, indicating a decrease of approximately 26% [237]. - Nonperforming assets (NPAs) totaled $136,236,000 as of September 30, 2025, a decrease from $148,169,000 on June 30, 2025 [228]. - The allowance for credit losses on loans increased to $414.6 million as of September 30, 2025, compared to $397.5 million a year earlier, reflecting a year-over-year increase of 4% [237]. - The total net charge-offs for the year-to-date period were $34.7 million, a decrease of 38% from $56.3 million in the same period last year [239]. Asset and Capital Management - Total assets reached $44,015,203 thousand, up from $43,420,063 thousand in the previous quarter [188]. - The Corporation's CET1 capital ratio is 10.33%, up from 10.20% in the previous quarter [272]. - Total capital increased to $4,488,957 thousand as of September 30, 2025, compared to $4,394,367 thousand in the previous quarter [272]. - The total risk-weighted assets amounted to $34,688,358 thousand, an increase from $34,241,408 thousand in the previous quarter [272]. - The Corporation's interest rate risk profile is asset sensitive as of September 30, 2025, with a 100 basis point increase in interest rates expected to increase earnings by 1.1% [262]. Loan Portfolio Composition - Total commercial loans amounted to $19,453,145 thousand in 2025, with an interest income of $955,197 thousand, yielding an average rate of 6.56% [186]. - Total consumer loans reached $11,000,345 thousand in 2025, generating an interest income of $383,113 thousand, with an average yield of 4.65% [186]. - Floating rate loans accounted for $21.2 billion, or 69% of total loans outstanding, with 90% of commercial loans being floating rate [208]. - The loan portfolio is diversified, with no significant concentrations exceeding 10% of total loan exposure as of September 30, 2025 [210]. - Residential mortgage loans made up 22% of total loans, totaling $6,858,285 thousand, showing a decrease from 26% in September 2024 [204]. Regulatory Compliance and Risk Management - The Corporation's maximum acceptable loan-to-value (LTV) ratio for home equity lines of credit is set at 90% [224]. - The assessment of overall capital adequacy considers factors such as asset quality, liquidity, and economic conditions [269]. - Compliance with regulatory minimum capital requirements is a tool for assessing capital adequacy but does not determine performance under extreme stress [270]. - The Corporation employs detailed underwriting procedures and periodic reviews to manage credit risk effectively [209]. - The Corporation's credit risk management includes ongoing review of loan payment performance and borrower creditworthiness [234].

Core Insights - Associated Banc-Corp's (ASB) Q3 2025 earnings per share (EPS) of 73 cents exceeded the Zacks Consensus Estimate of 66 cents and improved from 56 cents in the prior-year quarter [1][9] - The increase in net income available to common shareholders was 43% year over year, reaching $122 million, surpassing the estimate of $106.1 million [2] Revenue and Expenses - Total revenues for the quarter were $391 million, reflecting a 20% year-over-year increase and beating the Zacks Consensus Estimate of $375.91 million [3] - Net interest income (NII) reached a record $305 million, up 16% year over year, driven by higher commercial lending volumes and improved deposit mix management [4] - Non-interest income totaled $81 million, increasing 21%, primarily due to higher capital markets revenues and fees [5] - Non-interest expenses rose 8% to $216 million, mainly due to increased personnel and technology costs, exceeding the estimate of $209.3 million [5] Efficiency and Credit Quality - The efficiency ratio improved to 54.77%, down from 59.51% in the prior-year quarter, indicating enhanced profitability [6] - The provision for credit losses was $16 million, down from $21 million in the prior-year quarter, with total non-performing assets decreasing by 8% [8] Loans and Deposits - Total loans as of September 30, 2025, were $31.0 billion, up 1% sequentially, while total deposits rose 2% to $34.9 billion [7] Capital Ratios and Outlook - The Tier 1 risk-based capital ratio improved to 10.89%, up from 10.30% in the corresponding period of 2024 [10] - Management expects loans to grow at 5-6% and total core customer deposits to rise by 4-5% in 2025 [11] - Non-interest income is projected to increase by 5-6%, up from the previous guidance of 1-2% [12]