Associated Banc-Corp Announces Acquisition of American National Corp
Associated Banc-Corp, a Green Bay, Wisconsin-based banking corporation, has entered into an agreement to acquire American National Corp, a family-owned bank with assets worth $5.3 billion, based in Omaha, Nebraska. This move marks a significant milestone in Associated’s ongoing organic growth strategy and would strengthen its foothold in the Midwest, particularly in Nebraska, Iowa, and Minnesota.
Details of the Acquisition
The acquisition, valued at approximately $604 million, is an all-stock transaction which would boost Associated’s total assets to about $50 billion. This deal represents the bank’s first merger or acquisition since Andy Harmening joined the company as president and CEO in April 2021. This strategic decision is part of the “phase two” of Associated’s growth plan, a multiyear organic growth strategy which includes market-specific hiring, digital upgrades, and balance sheet repositioning.
Enhancing Inorganic Growth
The acquisition of American National Corp is seen as a natural opportunity to expand Associated’s footprint across attractive Midwestern markets and enhance the bank’s long-term organic growth strategy. According to CEO Andy Harmening, the deal should not be viewed as a deviation from the bank’s organic growth strategy but rather as an enhancement of its inorganic growth.
Associated-American National Tie-Up Amid a Wave of Bank M&As
The Associated-American National deal is part of a recent wave of bank mergers and acquisitions (M&As), spurred by a more favorable regulatory environment. As of November 24, there have been 168 bank M&A deals announced year to date, compared to 128 deals for the entire year of 2024. Notable transactions include Fifth Third Bancorp’s proposed $10.9 billion acquisition of Comerica in Dallas, and the pending $8.6 billion merger of Synovus Financial and Pinnacle Financial Partners.
Expanding Footprint in the Midwest
Associated’s acquisition of American National would add 33 branches, primarily concentrated in the greater Omaha and Minneapolis/St. Paul metropolitan markets. American National has $3.8 billion of loans, including a super-prime auto lending portfolio that makes up approximately 20% of its total loan book, and $4.7 billion of deposits.
This deal would make Associated the second-largest deposit holder in the Omaha metropolitan region and the tenth largest in the Twin Cities market. The transaction is subject to regulatory approval and is expected to close during the second quarter of 2026.
Future of Associated Banc-Corp Post-Acquisition
Following the acquisition, American National’s co-chair and co-CEO, Wende Kotouc, will join Associated’s board of directors. John Kotouc, also co-chair and co-CEO of American National, will transition into a consultant role. While the deal caught some analysts by surprise, Harmening defended the decision, highlighting the strong population and economic growth in Omaha, and the bank’s deep connection to the community.
Despite entering the M&A space, Associated Banc-Corp maintains its commitment to organic growth. Harmening stated, “Right now, we feel like we’re doing a deal that’s really good from an acquisition standpoint. However, we have a lot of ambitions to continue to grow organically, and a lot of ideas in our baseline strategic planning going forward that we think will make very, very good use of capital.”
More information about the acquisition can be found Here.
