Associated Banc‑Corp lowered its prime rate from 7.25% to 7.00%, effective October 30, 2025. The change reduces the benchmark rate used for variable‑rate loans and credit products offered by the bank.
The rate cut follows the Federal Reserve’s October 29 decision to lower the federal funds target range to 3.75%‑4.00%, the first reduction in the cycle. The bank’s pricing adjustment aligns with the broader market shift toward lower borrowing costs.
The new prime rate lowers borrowing costs for customers with variable‑rate products, including credit cards, auto loans, and other consumer and commercial loans. The reduction is expected to stimulate loan demand and support the bank’s loan growth objectives.
Associated Banc‑Corp’s net interest margin (NIM) has expanded in recent quarters, reaching 3.04% in Q3 2025, a 26‑basis‑point increase from the same period last year. The lower prime rate is projected to further enhance NIM by widening the spread between loan yields and deposit costs.
The bank previously reduced its prime rate from 7.50% to 7.25% effective September 18, 2025, indicating a trend of rate adjustments in response to evolving market conditions.
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