Associated Banc-Corp Raises Dividend 4.2%, Extends 14-Year Streak

Associated Banc-Corp raised its quarterly common dividend 4.2% to $0.25 from $0.24. ASB shares trade ex-dividend on December 1, 2026, and the payment is due December 15, 2026.

The new rate represents an annual dividend of $1.00 per share and annual income of $100.00 for every 100 shares.

Why the dividend changed

Associated did not provide a detailed rationale for the increase. Its dividend announcements typically record the board’s decision and payment schedule without linking the rate to a particular earnings, capital or cash-flow measure, as shown by its July dividend declaration.

The latest results nevertheless show the operating and capital backdrop for the decision. Associated reported third-quarter net income available to common equity of $144 million, or $0.76 per share, compared with $121 million, or $0.63 per share, in the second quarter. Adjusted earnings were $154 million, or $0.81 per share, after excluding nonrecurring costs related to the American National Corporation acquisition. Net interest income rose to $377 million, while the net interest margin expanded to 3.20%. Associated’s third-quarter release provides the results and guidance.

Chief Executive Andy Harmening said the bank’s deposit growth, margin expansion, fee income and earnings gave management confidence to repurchase $100 million of common stock during the quarter. Associated also completed the conversion of American National, which expanded its presence in Omaha and the Twin Cities. The acquisition closed on April 1, 2026, and still generated integration costs during the third quarter.

Management maintained guidance for 2026 period-end loan growth of 18% to 20%, total deposit growth of 17% to 19%, core customer deposit growth of 19% to 21%, and net interest income growth of 19% to 21%. Associated ended the quarter with a common equity Tier 1 ratio of 10.38%, above the applicable well-capitalized regulatory benchmarks. Those results provide context for the increase, although the company did not identify any one measure as the reason for it.

Dividend track record

The payment record shows a measured annual step-up rather than irregular increases. Payments of $0.23 ran from the December 2, 2024, ex-dividend date through September 2, 2025. The rate then moved to $0.24 beginning with the December 1, 2025, ex-dividend date and remained there for the March 2, June 1 and September 1, 2026, dates. The new $0.25 rate continues that pattern.

Full-year dividends rose from $0.72 in 2020 to $0.76 in 2021, an increase of 5.6%. They subsequently increased to $0.81 in 2022, up 6.6%; $0.85 in 2023, up 4.9%; $0.89 in 2024, up 4.7%; and $0.93 in 2025, up 4.5%. The sequence shows consistent growth, with the annual percentage increases moderating after 2022. Dividend growth has averaged 5.0% annually over the past five years.

Associated has now increased its dividend for 14 consecutive years. Its last annual cut occurred in 2010, placing the current streak after the reductions that followed the financial crisis.

Is the dividend covered?

The dividend consumes 33% of earnings. That leaves most earnings retained for lending, acquisition integration, credit reserves, technology spending and other capital needs.

SmarterDividends assigns the dividend a safety score of 88 and a grade of A, meaning very safe within the score range of 80-100. The grade reflects the modest earnings payout, established payment record and current capacity to absorb ordinary fluctuations in results. It does not make the payment guaranteed, particularly for a regional bank whose earnings and capital can be affected by credit losses, deposit costs and regulatory requirements.

Credit remains relevant to that assessment. Third-quarter nonaccrual loans increased to $183 million, while net charge-offs declined from the preceding quarter and the provision for credit losses fell to $14 million. Associated said future provisions would continue to reflect risk grades, economic conditions, loan volumes and other credit indicators.

Yield and valuation

At a share price of $30.53, the forward dividend yield is 3.33%. That is below the Financial Services sector median forward yield of 5.83%, so ASB provides less forward income at the current price than the sector median.

The shares recorded a 14.9% gain over the past year. SmarterDividends estimates fair value at $48.51 and classifies the shares as undervalued, with 61% upside to that estimate. The valuation is separate from dividend safety: it is a model-based estimate, while the dividend assessment centers on coverage and the bank’s capacity to continue payments.

What to watch

The immediate dates are December 1, 2026, when the shares trade ex-dividend, and December 15, 2026, when the $0.25 payment is scheduled. The new annual rate is $1.00 per share.

Subsequent results will show whether Associated finishes within its 2026 loan, deposit and net-interest-income guidance. Investors can also track the remaining American National integration costs, performance in the acquired Omaha and Twin Cities markets, and management’s promised details about its next strategic initiatives for 2027.

Capital allocation is another concrete marker. The board authorized an additional $100 million repurchase program in April, bringing total authorization at that time to $214 million, according to the annual-meeting release. Associated then repurchased $100 million of common stock in the third quarter. Future dividend decisions will sit alongside buybacks, organic growth spending, acquisition integration and regulatory capital needs.