Commercial growth at Associated Bank buoyed by influx of new employees
Associated Bank Shapes Growth Strategy for Commercial Bank
Associated Bank is charting a new course for its commercial bank, focusing on strategic hiring, market expansion, and targeted balance sheet diversification to drive growth and profitability.
In line with this strategy, the bank has recently hired 25 relationship managers across its core footprint over the past two years. Among these new hires are three bankers who will cover Kansas, Oklahoma, and Texas, joining from super-regional U.S. Bank.
The bank's head of corporate and commercial banking, Phil Trier, who previously worked at U.S. Bank for more than two decades before joining Associated 15 months ago, emphasizes the importance of talent hires in a competitive market.
The strategic hiring is part of Associated Bank's broader plan to strengthen its core business in the Midwest and expand into newer markets. The bank is actively expanding its footprint and presence in major Midwestern cities, aiming at broader market penetration in areas with commercial and industrial activity.
In terms of balance sheet diversification, the bank is deliberately remodeling its portfolio by increasing exposure to higher-yielding commercial and industrial (C&I) loans while reducing lower-yield residential mortgages. In the first half of 2025, the bank added $706 million in C&I loans, reflecting a strategic pivot to more relationship-based lending that delivers higher net interest margins.
Associated Bank is projecting $1.2 billion in C&I loan growth for 2025, with the bank's total bank loans and core deposits expected to grow by 5-6% and 4-5% respectively for the full year 2025.
The bank is large enough to have the technology and talent, but small enough to be nimble and have a relatively flat hierarchy. This agility, combined with disciplined risk management and enhanced customer experience investments, positions Associated Bank well in the current economic environment.
While the economic climate may present a hurdle, the bank is seeing impacts on the M&A front. The bank is also eyeing opportunities in Chicago, Milwaukee, and the Twin Cities, and could potentially expand into Dallas, Houston, and Cincinnati on the commercial side.
Rick Bruhn, a U.S. Bank veteran, has also joined Associated Bank to lead a new deposit-centric vertical with a national scope. The bank prefers to have a combination of industry specialists and generalists for its clients, favoring a generalist approach for middle market customers.
As the bank continues to expand its commercial bank, it aims to take advantage of opportunities in major cities while maintaining a focus on relationship-based lending, customer experience enhancements, and a balanced portfolio of higher-yielding C&I loans. Non-solicitations will expire for all of the bank's new commercial hires in the first quarter of 2026.
- To aid these growth plans, Associated Bank is increasing its focus on technology by investing in digital platforms and upgrading its infrastructure, aiming to streamline operations and provide advanced banking services to its commercial clients.
- Recognizing the importance of technology in modern business, Associated Bank's strategy includes expanding its technology team to support the bank's growth ambitions and one of the recent hires includes a technology expert from a leading financial institution.
