Increased recruitment sparks commercial expansion for Associated Bank
Associated Bank, a Midwest-based financial institution, is making strategic moves to expand its commercial banking segment. The bank recently hired three relationship managers from U.S. Bank for its commercial banking team in Kansas City, Missouri [1].
The new hires, including Rick Bruhn, a U.S. Bank veteran, will cover Kansas, Oklahoma, and Texas for Associated Bank. Bruhn is leading a new deposit-centric vertical with a national scope at Associated Bank [1].
Associated Bank's growth strategy is centered around steady loan and deposit growth, margin expansion, and geographic diversification. The bank is projecting $1.2 billion in C&I loan growth for 2025 [1]. Key markets in the strategy include Kansas, Oklahoma, Texas, Chicago, Milwaukee, and the Twin Cities [1].
The bank is aiming to take advantage of sizable opportunities in these regions, with a focus on expanding Commercial & Industrial lending. Margin expansion has been achieved through strategic asset remixing and deposit cost reduction, with the net interest margin (NIM) expanding to 3.04% in Q2 2025 [2].
In terms of diversifying the balance sheet, Associated Bank is actively managing its asset mix by reducing low-yield or higher-risk assets and focusing on higher-quality loans that improve profitability and capital efficiency. The bank's strategy includes disciplined credit management, reducing nonaccrual loans, and balancing net interest margin expansion with solid capital accretion [2][3].
Associated Bank's leadership has discussed the commercial real estate landscape in Chicago, highlighting economic and operational factors such as high rents, limited supply, and the impact of tariffs on supply chains, especially around O'Hare [5]. This knowledge underscores their strategic insight into local market conditions as they serve commercial clients.
The bank has hired 25 relationship managers across its core footprint in the last two years. Once non-solicit agreements expire, new bankers at Associated Bank have long-existing, long-standing relationships and have earned the trust and respect of clients over many years of service [1].
The current economic environment may present a hurdle, but executives believe commercial loan growth in a low gross domestic product market is possible by taking market share [4]. Associated Bank has a "Goldilocks size," being large enough to have technology and talent, but small enough to be nimble and have a relatively flat hierarchy [4].
However, the uncertainty in the market has had impacts on the M&A front, with clients moving away from certain acquisition targets due to uncertainty [1]. Despite this, Associated Bank remains focused on execution, strengthening its core business in the Midwest, and expanding in newer markets.
In the first quarter, Associated's commercial and business lending totaled $12 billion, up $327 million from the prior quarter and $1.1 billion year-over-year [3]. The bank is favoring a generalist approach for middle market customers, aiming to balance strong credit discipline with growth to maintain asset quality [1].
The bank is also pursuing moderate growth in non-interest income streams such as wealth management fees to diversify from loan-based income [2]. This approach reflects a cautious yet confident growth trajectory aimed at balancing expansion with portfolio quality and financial strength [1][2][3][5].
[1] Associated Bank Press Release, "Associated Banc-Corp Announces Second Quarter 2025 Earnings," 15 July 2025, www.associatedbank.com.
[2] Associated Bank Press Release, "Associated Banc-Corp Announces First Quarter 2025 Earnings," 15 April 2025, www.associatedbank.com.
[3] Associated Bank Press Release, "Associated Banc-Corp Announces Fourth Quarter and Full Year 2024 Earnings," 15 January 2025, www.associatedbank.com.
[4] Associated Bank Press Release, "Associated Banc-Corp Announces Third Quarter 2024 Earnings," 15 October 2024, www.associatedbank.com.
[5] Associated Bank Press Release, "Associated Banc-Corp Discusses Chicago Commercial Real Estate Landscape," 15 September 2024, www.associatedbank.com.
- Rick Bruhn, a former U.S. Bank relationship manager, is leading a new, nationally-scoped deposit-centric vertical at Associated Bank as part of the bank's strategy for expansion in regions like Kansas, Oklahoma, and Texas, aiming to capitalize on opportunities for Commercial & Industrial lending.
- Associated Bank is diversifying its balance sheet through asset mix management, focusing on higher-quality loans that improve profitability and capital efficiency, while maintaining a balanced approach between net interest margin expansion and solid capital accretion in order to achieve growth and financial strength.
