Associated Bank expands Twin Cities footprint with purchase of American National

Green Bay, Wis.-based Associated Banc-Corp is poised to increase its presence in the Twin Cities market by purchasing American National Bank in a deal valued at $600 million.

Bank executives said Monday the all-stock transaction would put Associated Bank in the No. 10 spot in the Twin Cities. Once the ink dries, the bank will manage $3.3 billion in deposits and two dozen Minnesota branches in the state, nearly all in the Twin Cities metro area.

Boards of directors approved the deal unanimously, according to a joint statement from the two banks. American National is privately owned by two Nebraska families. American National chief executive Wende Kotouc will join Associated Bank’s board.

Stock in Associated Bank declined less than a percentage point Monday, as did the S&P 500.

While most of American National’s branches are in or around its hometown of Omaha, the bank does have six Minnesota branches, all in the Twin Cities area.

Banking in the Twin Cities is dominated by U.S. Bancorp, which controls 41% of the market, followed by Wells Fargo at 18%, Ameriprise at 10%, Old National Bank at 4% and Huntington National Bank, 3%.

The merger of Associated and American National requires federal regulatory approval. Executives expect the transaction to wrap up in the second quarter of 2026.

Harmening counted Omaha and the Twin Cities among the most attractive and resilient markets in the Midwest, citing population growth, favorable household income characteristics and a diverse local economy. After the deal is done, Omaha and the Twin Cities combined will represent about 20% of the bank’s deposit base.

“In the Twin Cities, we already have momentum,” Harmening said, adding the bank is “building on an already meaningful franchise” and will soon have “more reach with middle market and business banking customers” in Minnesota.

The merger aligns with the broader trend of consolidation within the financial services industry.

Minnesotans this year have seen other banks fold into each other. Former Bremer Bank customers recently finished switching accounts over Old National Bancorp, which closed its approximately $1.4 billion purchase of Bremer this year. In October, Nicolet Bank, also based in Green Bay, Wis., moved to acquire MidWestOne Financial Group in a deal valued at $864 million.

Associated Bank last went through a merger with the pickup of family-owned First National Bank of Staunton in Illinois. The cash deal, valued at $76.3 million, closed in 2020.

Phil Trier, Associated Bank’s head of corporate and commercial banking, said in an interview Monday the two banks have “very little” overlap in the Twin Cities. However, he said it is too early to say what effects the merger may have in terms of local consolidation.

Analysts on Monday pressed executives for details on Associated Bank’s long-term growth strategy. Specifically, executives were asked if the purchase meant the bank is leaning toward buying more banks in the near future.