Associated Banc-Corp Profit Rises

Associated Banc-Corp(ASBC Quote) said its profit rose 5.5% for the first quarter, driven by growth in home equity and commercial loans.

The company earned $81.7 million, or 60 cents a share, compared with $77.5 million, or 59 cents a share, in the year ago period. Analysts polled by Thomson First Call were expecting earnings of 61 cents a share.

First-quarter net interest margin was 3.48% compared with 3.68% last year. Net interest income rose marginally to $166.9 million. The company said the net interest income and the net interest margin were pressurized by the interest rate environment, resulting in a rising cost of funds that exceeded the increased yield on earning assets.

Non-interest income slipped to $70.8 million from $71.4 million in the quarter. Non-interest expense in the most recent quarter rose 1.8% to $123.5 million. ...