Press Release Details

Associated 2nd Quarter Earnings Per Diluted Share up 12 Percent

07/17/2003

GREEN BAY, Wis.--(BUSINESS WIRE)--July 17, 2003--Associated Banc-Corp (NASDAQ:ASBC) earned $.76 per diluted share in the quarter that ended June 30, 2003, a 12 percent increase from $.68 per diluted share for the same period in 2002. Net income was $56.7 million, compared to $52.3 million for the comparable quarter of 2002.

Return on average assets was 1.51 percent in the second quarter 2003 compared to 1.47 percent in the second quarter of 2002. Return on average equity was 17.37 percent compared to 16.79 percent in the year-earlier quarter.

For the six months ended June 30, 2003, diluted earnings per share were $1.53, up 12 percent from $1.37 per diluted share in the same period in 2002. Return on average assets was 1.55 percent and return on average equity was 17.86 percent, compared to 1.51 percent and 17.58 percent, respectively, for the six months ended June 30, 2002.

"Associated is pleased to have delivered such positive results in the second quarter," Associated President and CEO Paul Beideman said. "While lower interest rates have put pressure on our net interest margin, they have also contributed to high levels of mortgage production and sales activity, which contributed significantly to our financial results," he said.

Net interest income was $127 million for the second quarter, compared to $126 million in the year-earlier period, and $127 million for the previous quarter. The net interest margin for second quarter 2003 was 3.79 percent, down from 3.96 percent a year ago and 3.87 percent for first quarter 2003. For the first six months of 2003, net interest income was $255 million, up 5 percent compared to $243 million for the same period of 2002. Net interest margin was 3.83 percent for the first six months of 2003, compared to 3.94 percent for the same period in 2002.

Total loans at the end of the second quarter 2003 were $10.4 billion, an increase of $505 million or 5 percent compared to a year earlier. The growth occurred in commercial loans, up $557 million, or 9 percent, while consumer and residential real estate loans were relatively unchanged compared to a year ago. Total loans, again led by commercial loan growth, were up 4 percent on an annualized basis since March 31, 2003.

Total deposits were $9.5 billion at June 30, 2003, up 5 percent, or $427 million, compared to a year ago. Transaction deposit accounts (demand, savings, interest-bearing demand and money market accounts) were $6.2 billion, up 13 percent over June 30, 2002. Time deposits were $3.3 billion at June 30, 2003, compared to $3.5 billion last year, tempered by the prolonged lower interest rate environment and customer preference to keep funds liquid. Since March 31, 2003, total deposits were up 17 percent on an annualized basis.

The provision for loan losses was $12.1 million for the second quarter of 2003, compared to $12.0 million for the same quarter last year, and $13.0 million for the first quarter in 2003. For the first six months of 2003, the provision for loan losses was $25.1 million, compared to $23.3 million for the same period last year. The ratio of the allowance for loan losses was 1.66 percent of total loans at June 30, 2003, and at March 31, 2003, but up from 1.50 percent at June 30, 2002.

Net chargeoffs for the second quarter of 2003 were $10.1 million, compared to net chargeoffs of $7.6 million for second quarter 2002 and $5.1 million for the first quarter 2003. For the six months that ended June 30, 2003, annualized net chargeoffs were 0.29 percent of average loans, compared to 0.31 percent for the same period last year. Nonperforming loans were $117 million as of June 30, 2003, up from $94.7 million as of March 31, 2003, and $87.3 million a year ago. The increase in nonperforming loans from the first quarter of 2003 is principally related to two customers, one in the construction industry and one in the hospitality industry.

"Most of our commercial customers are managing effectively in the current enviroment and we are working with them as they plan for the future. We believe any significant improvement in asset quality depends on sustained economic improvement," Beideman said.

Noninterest income grew to $70.2 million for the second quarter, compared to $49.9 million in the same period of 2002. The continued strong activity in the mortgage and mortgage refinancing market generated $1.2 billion of mortgages for sale into the secondary market for the second quarter of 2003, similar to the $1.1 billion in first quarter 2003, and up significantly from $0.4 billion in the second quarter of 2002. Mortgage banking revenue of $28.8 million in the second quarter of 2003 was nearly three times that of the year-earlier period. In comparison to the first quarter of 2003, noninterest income was up $5.0 million, with $2.7 million of the increase in mortgage banking income, as well as increased insurance revenue attributable primarily to our previously announced acquisition of CFG Insurance Services, Inc. as of April 1, 2003.

Noninterest expense for the second quarter 2003 grew by approximately $12.7 million, or 14 percent, compared to the second quarter of 2002, with $9.1 million of the increase coming from higher mortgage servicing rights expense. While the strong mortgage refinance activity benefited mortgage banking income in the second quarter, it increased the prepayment speeds of Associated's mortgage portfolio serviced for others, a key factor behind the valuation of mortgage servicing rights. Mortgage servicing rights expense included an $8.5 million addition to the valuation allowance compared to a $.8 million addition in the second quarter of 2002. The mortgage servicing asset at June 30, 2003, represents 0.51 percent of the total $5.5 billion residential mortgage portfolio serviced for others. Compared to first quarter 2003, noninterest expense was up $5.8 million, with $3.0 million of the increase in personnel expense, directly attributable to the addition of CFG personnel, as well as a $1.4 million increase in mortgage servicing rights expense.

"Although our first half results are encouraging, our 2003 goal of 10 percent earnings per share growth was predicated on an improving economy, moderate interest rate increases, and increased confidence among consumers and businesses. While economic stimulus from Washington and recent stock market strength are helpful, a sustained economic recovery may take some time to materialize. The continuation of lower rates will put pressure on our margin, but mortgage banking should remain strong for the rest of the year. We remain cautiously optimistic about our financial performance in 2003," Beideman said.

The company repurchased 476,000 shares of its common stock during the second quarter of 2003 at an average cost of $36.12 per share. Associated repurchased 1.2 million shares in the first six months of 2003 at an average cost of $34.66 per share.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $15.2 billion. Associated has more than 200 banking offices serving more than 150 communities in Wisconsin, Illinois, and Minnesota. The company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.AssociatedBank.com.

Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding descriptions of management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "should," "will," "intend," or similar expressions. Outcomes related to such statements are subject to numerous risk factors and uncertainties including those listed in the company's Annual Report filed on Form 10-K.

Tables follow.

Consolidated Balance Sheets (Unaudited)
Associated Banc-CorpJune 30,   December 31,   %      June 30,     %
(in thousands)       2003         2002      Change    2002      Change
----------------------------------------------------------------------
Assets

Cash and due from
 banks               $393,882$430,691  (8.5%)    $346,708   13.6%
Interest-bearing
 deposits in other
 financial
  institutions         13,456        5,502  144.6%      11,853   13.5%
Federal funds sold
 and securities
 purchased
 under agreements
  to resell            14,550        8,820   65.0%      51,275 (71.6%)
Securities
 available for
 sale, at fair
 value              3,374,834    3,362,669    0.4%   3,424,127  (1.4%)
Loans held for
 sale                 392,563      305,836   28.4%     123,520  217.8%
Loans              10,387,364   10,303,225    0.8%   9,882,669    5.1%
Allowance for loan
 losses              (172,440)    (162,541)   6.1%    (148,733)  15.9%
                  ------------ ------------        ------------
    Loans, net     10,214,924   10,140,684    0.7%   9,733,936    4.9%
Premises and
 equipment            131,436      132,713  (1.0%)     134,766  (2.5%)
Goodwill              224,388      212,112    5.8%     212,112    5.8%
Other intangible
 assets                50,556       41,565   21.6%      47,239    7.0%
Other assets          408,227      402,683    1.4%     391,457    4.3%
                  ------------ ------------        ------------
    Total assets  $15,218,816$15,043,275    1.2% $14,476,993    5.1%
                  ============ ============        ============

Liabilities and Stockholders' Equity

Noninterest-
 bearing deposits  $1,833,703$1,773,699    3.4%  $1,566,487   17.1%
Interest-bearing
 deposits,
 excluding
 Brokered CDs       7,456,729    7,117,503    4.8%   7,225,789    3.2%
Brokered CDs          163,028      233,650 (30.2%)     233,968 (30.3%)
                  ------------ ------------        ------------
    Total deposits  9,453,460    9,124,852    3.6%   9,026,244    4.7%
Short-term
 borrowings         2,079,371    2,389,607 (13.0%)   2,301,853  (9.7%)
Long-term debt      2,012,968    1,906,845    5.6%   1,513,131   33.0%
Company-obligated
 mandatorily
 redeemable
  preferred
   securities         191,549      190,111    0.8%     174,636    9.7%
Accrued expenses
 and other
 liabilities          163,222      159,677    2.2%     185,560 (12.0%)
                  ------------ ------------        ------------
    Total
     liabilities   13,900,570   13,771,092    0.9%  13,201,424    5.3%
Stockholders'
 Equity
  Preferred stock           -            -                   -
  Common stock            743          755  (1.6%)         767  (3.1%)
  Surplus             606,660      643,956  (5.8%)     682,519 (11.1%)
  Retained
   earnings           664,280      607,944    9.3%     552,554   20.2%
  Accumulated
   other
   comprehensive
   income              65,822       60,313    9.1%      72,171  (8.8%)
  Treasury stock
   and other          (19,259)     (40,785)(52.8%)     (32,442)(40.6%)
                  ------------ ------------        ------------
    Total
     stockholders'
     equity         1,318,246    1,272,183    3.6%   1,275,569    3.3%
                  ------------ ------------        ------------
    Total
     liabilities
     and
     stockholders'
     equity       $15,218,816$15,043,275    1.2% $14,476,993    5.1%
                  ============ ============        ============



Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

                    For The Three              For The Six
                    Months Ended,             Months Ended,
                      June 30,                   June 30,
                 -------------------       -------------------
(in thousands,
 except per share                     %                         %
 amount             2003      2002  Change    2003      2002  Change
---------------------------------------------------------------------
Interest Income

Interest and
 fees on loans   $147,785$158,321  (6.7%)$296,281$309,670  (4.3%)
Interest and
 dividends on
 investment
 securities
 and deposits
 with other
 financial
 institutions
  Taxable          25,923    33,372 (22.3%)  52,720    66,231 (20.4%)
  Tax-exempt        9,942     9,988  (0.5%)  19,997    19,968    0.1%
Interest on
 federal funds
 sold and
 securities
 purchased under
 agreements to
 resell                54       176 (69.3%)      89       294 (69.7%)
                 --------- ---------       --------- ---------
    Total
     interest
     income       183,704   201,857  (9.0%) 369,087   396,163  (6.8%)

Interest Expense

Interest on
 deposits          31,558    45,560 (30.7%)  63,548    93,789 (32.2%)
Interest on
 short-term
 borrowings         8,442    13,840 (39.0%)  17,009    27,495 (38.1%)
Interest on long-
 term debt and
 capital
 securities        16,509    16,689  (1.1%)  33,881    31,684    6.9%
                 --------- ---------       --------- ---------
    Total
     interest
     expense       56,509    76,089 (25.7%) 114,438   152,968 (25.2%)
                 --------- ---------       --------- ---------
Net Interest
 Income           127,195   125,768    1.1% 254,649   243,195    4.7%

Provision for
 loan losses       12,132    12,003    1.1%  25,092    23,254    7.9%
                 --------- ---------       --------- ---------
Net interest
 income after
 provision for
 loan losses      115,063   113,765    1.1% 229,557   219,941    4.4%

Noninterest
 Income

Trust service
 fees               7,796     7,722    1.0%  14,426    15,093  (4.4%)
Service charges
 on deposit
 accounts          12,462    11,733    6.2%  24,273    21,613   12.3%
Mortgage banking   28,845     9,637  199.3%  54,948    22,241  147.1%
Credit card and
 other nondeposit
 fees               5,192     7,094 (26.8%)  12,588    13,166  (4.4%)
Retail
 commissions        7,407     5,885   25.9%  10,710    10,501    2.0%
Bank owned life
 insurance
 income             3,450     3,469  (0.5%)   6,841     6,739    1.5%
Asset sale gains
 (losses), net       (790)       41    N/M     (668)      372    N/M
Investment
 securities
 gains, net         1,027         -    N/M      701         -    N/M
Other               4,771     4,322   10.4%  11,550     7,578   52.4%
                 --------- ---------       --------- ---------
    Total
     noninterest
     income        70,160    49,903   40.6% 135,369    97,303   39.1%

Noninterest
 Expense

Personnel
 expense           53,245    48,764    9.2% 103,480    93,758   10.4%
Occupancy           7,151     6,650    7.5%  14,266    12,787   11.6%
Equipment           3,190     3,727 (14.4%)   6,434     7,217 (10.8%)
Data processing     5,602     5,304    5.6%  11,220    10,107   11.0%
Business
 development and
 advertising        3,553     3,126   13.7%   6,916     6,572    5.2%
Stationery and
 supplies           1,634     1,786  (8.5%)   3,313     3,830 (13.5%)
FDIC expense          359       402 (10.7%)     725       774  (6.3%)
Mortgage
 servicing
 rights expense    13,021     3,874  236.1%  24,619     6,771  263.6%
Other intangible
 amortization         870       634   37.2%   1,220     1,098   11.1%
Loan expense          950     3,534 (73.1%)   4,298     6,313 (31.9%)
Other              14,344    13,386    7.2%  25,585    24,376    5.0%
                 --------- ---------       --------- ---------
    Total
     noninterest
     expense      103,919    91,187   14.0% 202,076   173,603   16.4%
                 --------- ---------       --------- ---------
Income before
 income taxes      81,304    72,481   12.2% 162,850   143,641   13.4%

Income tax
 expense           24,635    20,137   22.3%  48,188    39,835   21.0%
                 --------- ---------       --------- ---------
Net Income        $56,669$52,344    8.3%$114,662  $103,806   10.5%
                 ========= =========       ========= =========

Earnings Per
 Share:
  Basic             $0.77$0.69   11.6%   $1.55$1.39   11.5%
  Diluted           $0.76$0.68   11.8%   $1.53$1.37   11.7%
Average Shares
 Outstanding:
  Basic            73,959    75,922  (2.6%)  74,104    74,540  (0.6%)
  Diluted          74,683    77,041  (3.1%)  74,777    75,510  (1.0%)

N/M - Not meaningful.



Selected Quarterly Information
Associated Banc- Corp
----------------------------------------------------------------------
(in thousands,
 except per share
 data)              YTD 2003     YTD 2002   2nd Qtr 2003 1st Qtr 2003
----------------------------------------------------------------------
Summary of
 Operations

Net interest
 income               254,649      243,195      127,195      127,454
Provision for loan
 losses                25,092       23,254       12,132       12,960
Net interest
 income after
 provision for
 loan losses          229,557      219,941      115,063      114,494
Asset sale gains
 (losses), net           (668)         372         (790)         122
Investment
 securities gains
 (losses), net            701            -        1,027         (326)
Noninterest income
 (excluding
 securities &
 asset gains)         135,336       96,931       69,923       65,413
Noninterest
 expense              202,076      173,603      103,919       98,157
Income taxes           48,188       39,835       24,635       23,553
Net income            114,662      103,806       56,669       57,993
Taxable equivalent
 adjustment            12,508       12,100        6,231        6,277

----------------------------------------------------------------------
Per Common Share
 Data (1)

Net income:
  Basic                 $1.55$1.39$0.77$0.78
  Diluted                1.53         1.37         0.76         0.77
Dividends                0.65         0.59         0.34         0.31

Market Value:
  High                 $38.41$38.25$38.41$35.22
  Low                   32.15        30.37        32.15        32.33
  Close                 36.61        37.71        36.61        32.33
Book value              17.88        16.84        17.88        17.41

----------------------------------------------------------------------
Performance Ratios
 (annualized)

Net interest
 margin (FTE)            3.83%        3.94%        3.79%        3.87%
Return on average
 assets                  1.55         1.51         1.51         1.58
Return on average
 equity                 17.86        17.58        17.37        18.36
Efficiency ratio (2)    50.21        49.29        51.10        49.29
Effective tax rate      29.59        27.73        30.30        28.88
Dividend payout
 ratio (basic)          41.94        42.58        44.16        39.74

----------------------------------------------------------------------
Average Balances

Assets            $14,942,330$13,907,262$15,016,497$14,867,339
Earning assets     13,914,288   12,934,385   13,991,615   13,836,102
Interest-bearing
 liabilities       11,914,412   11,163,244   11,941,877   11,886,642
Loans              10,661,386    9,655,626   10,743,430   10,578,430
Deposits            9,011,930    8,883,742    9,121,204    8,901,441
Stockholders'
 equity             1,294,804    1,191,063    1,308,505    1,280,950
Stockholders'
 equity / assets         8.67%        8.56%        8.71%        8.62%

----------------------------------------------------------------------
At Period End

Assets                                      $15,218,816$15,089,166
Loans                                        10,387,364   10,275,469
Allowance for loan
 losses                                         172,440      170,391
Deposits                                      9,453,460    9,060,234
Stockholders'
 equity                                       1,318,246    1,285,866
Stockholders'
 equity / assets                                   8.66%        8.52%
Shares
 outstanding, end
 of period                                       73,736       73,870

----------------------------------------------------------------------

Selected Quarterly Information
Associated Banc-Corp
---------------------------------------------------------
(in thousands,
 except per share
 data)            4th Qtr 2002 3rd Qtr 2002 2nd Qtr 2002
---------------------------------------------------------
Summary of
 Operations

Net interest
 income               129,713      128,358       125,768
Provision for loan
 losses                14,614       12,831        12,003
Net interest
 income after
 provision for
 loan losses          115,099      115,527       113,765
Asset sale gains
 (losses), net           (373)         658            41
Investment
 securities gains
 (losses), net           (801)         374             -
Noninterest income
 (excluding
 securities &
 asset gains)          65,523       57,624        49,862
Noninterest
 expense              102,763       98,183        91,187
Income taxes           23,244       22,528        20,137
Net income             53,441       53,472        52,344
Taxable equivalent
 adjustment             5,981        5,991         6,037

---------------------------------------------------------
Per Common Share
 Data (1)

Net income:
  Basic                 $0.72$0.71$0.69
  Diluted                0.71         0.70          0.68
Dividends                0.31         0.31          0.31

Market Value:
  High                 $34.21$36.96$38.25
  Low                   27.20        30.64         33.63
  Close                 33.94        31.73         37.71
Book value              17.13        17.03         16.84

---------------------------------------------------------
Performance Ratios
 (annualized)

Net interest
 margin (FTE)            3.87%        3.96%         3.96%
Return on average
 assets                  1.42         1.47          1.47
Return on average
 equity                 16.62        16.73         16.79
Efficiency ratio (2)    51.07        51.14         50.19
Effective tax rate      30.31        29.64         27.78
Dividend payout
 ratio (basic)          43.06        43.66         44.93

---------------------------------------------------------
Average Balances

Assets            $14,901,747$14,460,358$14,273,232
Earning assets     13,870,491   13,427,986    13,248,590
Interest-bearing
 liabilities       11,792,552   11,459,673    11,400,302
Loans              10,559,154   10,128,826     9,902,462
Deposits            8,934,668    8,947,047     9,081,434
Stockholders'
 equity             1,275,914    1,268,355     1,250,748
Stockholders'
 equity / assets         8.56%        8.77%         8.76%

---------------------------------------------------------
At Period End

Assets            $15,043,275$15,044,702$14,476,993
Loans              10,303,225   10,086,510     9,882,669
Allowance for loan
 losses               162,541      155,288       148,733
Deposits            9,124,852    8,947,353     9,026,244
Stockholders'
 equity             1,272,183    1,270,691     1,275,569
Stockholders'
 equity / assets         8.46%        8.45%         8.81%
Shares
 outstanding, end
 of period             74,281       74,598        75,746

---------------------------------------------------------
(1) Per share data adjusted retroactively for stock splits and stock
    dividends.
(2) Efficiency ratio = Noninterest expense divided by sum of taxable
    equivalent net interest income plus noninterest income, excluding
    investment securities gains, net, and asset sales gains, net.



Financial Summary and Comparison
Associated Banc-Corp
                         Three months ended        Six months ended
                               June 30,                June 30,
                       ----------------------- -----------------------
(in thousands, except                      %                       %
 per share)              2003     2002  Change   2003     2002  Change
---------------------  ----------------------- -----------------------
Allowance for Loan
 Losses

Beginning balance      $170,391$144,350 18.0% $162,541$128,204 26.8%
Balance related to
 acquisitions                 -        -    -         -   11,985  N/M
Provision for loan
 losses                  12,132   12,003  1.1%   25,092   23,254  7.9%
Charge offs             (11,537)  (8,802)31.1%  (17,291) (16,787) 3.0%
Recoveries                1,454    1,182 23.0%    2,098    2,077  1.0%
                       ------------------      ------------------
Net charge offs         (10,083)  (7,620)32.3%  (15,193) (14,710) 3.3%
                       ------------------      ------------------
Ending Balance         $172,440$148,733 15.9% $172,440$148,733 15.9%
                       ==================      ==================

----------------------------------------------------------------------

                      2nd Qtr  1st Qtr    %   4th Qtr 3rd Qtr 2nd Qtr
Credit Quality         2003     2003   Change   2002    2002    2002
                     -------------------------------------------------
Nonaccrual loans     $110,820$90,384   22.6% $94,132$93,250$82,474
Loans 90 or more days
 past due and still
 accruing (1)           6,311   3,425   84.3%   3,912   5,981   4,683
Restructured loans         46     844 (94.5%)   1,258   1,110     115
                     -----------------        ------------------------
    Total
     nonperforming
     loans            117,177  94,653   23.8%  99,302 100,341  87,272
Other real estate
 owned                 14,707  12,949   13.6%  11,448   3,331   2,610
                     -----------------        ------------------------
    Total
     nonperforming
     assets           131,884 107,602   22.6% 110,750 103,672  89,882
                     =================        ========================
Net charge offs        10,083   5,110   97.3%   7,361   6,276   7,620

Allowance for loan
 losses / loans          1.66%   1.66%           1.58%   1.54%   1.50%
Allowance for loan
 losses /
 nonperforming loans   147.16  180.02          163.68  154.76  170.42
Nonperforming loans
 / total loans           1.13    0.92            0.96    0.99    0.88
Nonperforming assets
 / total assets          0.87    0.71            0.74    0.69    0.62
Net charge offs /
 average loans
 (annualized)            0.38    0.20            0.28    0.25    0.31
Year-to-date net
 charge offs /
 average loans           0.29    0.20            0.28    0.29    0.31

----------------------------------------------------------------------

Period End Loan
Composition            June 30,     Dec 31,     %     June 30,     %
                         2003        2002     Change    2002    Change
                     ------------------------------- -----------------
Commercial,
 financial &
 agricultural         $2,312,143$2,213,986    4.4% $2,127,665   8.7%
Real estate -
 construction            975,415     910,581    7.1%    821,658  18.7%
Commercial real
 estate                3,255,918   3,128,826    4.1%  3,037,284   7.2%
Lease financing           38,666      38,352    0.8%     38,212   1.2%
                     ------------------------        -----------
  Commercial           6,582,142   6,291,745    4.6%  6,024,819   9.3%
Residential mortgage   2,202,690   2,430,746  (9.4%)  2,364,373 (6.8%)
Home equity              895,952     864,631    3.6%    777,347  15.3%
                     ------------------------        -----------
  Residential real
   estate              3,098,642   3,295,377  (6.0%)  3,141,720 (1.4%)
Consumer                 706,580     716,103  (1.3%)    716,130 (1.3%)
                     ------------------------        -----------
  Total loans        $10,387,364$10,303,225    0.8% $9,882,669   5.1%
                     ========================        ===========
----------------------------------------------------------------------

Period End Deposit
Composition
                       June 30,   Dec 31,      %     June 30,     %
                         2003      2002     Change     2002    Change
                     -----------------------------  ------------------
Demand               $1,833,703$1,773,699    3.4%  $1,566,487   17.1%
Savings                 942,027    895,855    5.2%     912,019    3.3%
Interest-bearing
 demand               1,797,065  1,468,193   22.4%   1,113,342   61.4%
Money market          1,598,317  1,754,313  (8.9%)   1,888,165 (15.4%)
Brokered CDs            163,028    233,650 (30.2%)     233,968 (30.3%)
Other time deposits   3,119,320  2,999,142    4.0%   3,312,263  (5.8%)
                     ----------------------         -----------
  Total deposits     $9,453,460$9,124,852    3.6%  $9,026,244    4.7%
                     ======================         ===========
----------------------------------------------------------------------

N/M = Not Meaningful
(1) Does not include guaranteed student loans. Guaranteed student
    loans 90+ days past due and still accruing totaled $16.0 million
    as of June 30, 2003.



Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                      Six months ended         Six months ended
                        June 30, 2003June 30, 2002
                  ------------------------- --------------------------
                   Average  Interest Average Average  Interest Average
                   Balance  Income/  Yield/  Balance  Income/  Yield/
                            Expense  Rate             Expense  Rate
                  -------------------------- -------------------------



Earning assets:
   Loans: (1)(2)(3)
      Commercial   $6,399,244$166,188 5.17% $5,720,820$171,459 5.96%
      Residential
       real
       estate       3,551,134  104,600 5.92   3,234,762  110,397 6.85
      Consumer        711,008   26,003 7.37     700,044   28,393 8.17
                  ---------------------     ---------------------
         Total
          loans    10,661,386  296,791 5.56   9,655,626  310,249 6.42
   Investments
    and other       3,252,902   84,804 5.22   3,278,759   98,014 5.98
                  ---------------------     ---------------------
Total earning
 assets            13,914,288  381,595 5.48  12,934,385  408,263 6.31
   Other assets,
    net             1,028,042                   972,877
                  ------------              ------------
Total assets      $14,942,330$13,907,262
                  ============              ============

Interest-bearing
 liabilities:
   Savings
    deposits         $927,413$2,884 0.63%   $864,914$3,329 0.78%
   Interest-
    bearing
    demand
    deposits        1,591,942    6,925 0.88     983,399    3,427 0.70
   Money market
    deposits        1,668,467    8,264 1.00   1,950,679   13,466 1.39
   Time deposits,
    excluding
    Brokered CDs    3,032,656   43,614 2.90   3,403,593   70,393 4.17
                  ---------------------     ---------------------
      Total
       interest-
       bearing
       deposits,
       excluding
       Brokered
       CDs          7,220,478   61,687 1.72   7,202,585   90,615 2.54
   Brokered CDs       203,484    1,861 1.84     307,796    3,174 2.08
                  ---------------------     ---------------------
      Total
       interest-
       bearing
       deposits     7,423,962   63,548 1.73   7,510,381   93,789 2.52
   Wholesale
    funding         4,490,450   50,890 2.26   3,652,863   59,179 3.22
                  ---------------------     ---------------------
Total interest-
 bearing
 liabilities       11,914,412  114,438 1.93  11,163,244  152,968 2.75
   Noninterest-
    bearing
    demand          1,587,968                 1,373,361
   Other
    liabilities       145,146                   179,594
   Stockholders'
    equity          1,294,804                 1,191,063
                  ------------              ------------
Total liabilities
 and
 stockholders'
 equity           $14,942,330$13,907,262
                  ============              ============

                              ---------                 ---------
Net interest
 income and rate
 spread (1)                   $267,157 3.55%            $255,295 3.56%
                              =========                 =========
Net interest
 margin (1)                            3.83%                     3.94%
Taxable
 equivalent
 adjustment                    $12,508$12,100
                              =========                 =========
----------------------------------------------------------------------
                      Three months ended        Three months ended
                        June 30, 2003June 30, 2002
                  -------------------------- -------------------------
                   Average  Interest Average Average  Interest Average
                   Balance  Income/  Yield/  Balance  Income/  Yield /
                            Expense  Rate             Expense  Rate
                  -------------------------- -------------------------
Earning assets:
   Loans: (1)(2)(3)
      Commercial   $6,470,954$83,333 5.10% $5,968,167$89,365 5.93%
      Residential
       real
       estate       3,564,125   51,778 5.81   3,217,681   54,540 6.78
      Consumer        708,351   12,940 7.32     716,614   14,690 8.22
                  ---------------------     ---------------------
         Total
          loans    10,743,430  148,051 5.48   9,902,462  158,595 6.37
   Investments
    and other       3,248,185   41,884 5.16   3,346,128   49,299 5.89
                  ---------------------     ---------------------
Total earning
 assets            13,991,615  189,935 5.41  13,248,590  207,894 6.25
   Other assets,
    net             1,024,882                 1,024,642
                  ------------              ------------
Total assets      $15,016,497$14,273,232
                  ============              ============

Interest-bearing
 liabilities:
   Savings
    deposits         $945,048$1,431 0.61%   $900,471$1,769 0.79%
   Interest-
    bearing
    demand
    deposits        1,696,412    3,812 0.90   1,038,413    1,927 0.74
   Money market
    deposits        1,632,710    3,999 0.98   1,992,669    6,751 1.36
   Time deposits,
    excluding
    Brokered CDs    3,052,513   21,549 2.83   3,411,891   33,580 3.95
                  ---------------------     ---------------------
      Total
       interest-
       bearing
       deposits,
       excluding
       Brokered
       CDs          7,326,683   30,791 1.69   7,343,444   44,027 2.40
   Brokered CDs       174,748      767 1.76     289,676    1,533 2.12
                  ---------------------     ---------------------
      Total
       interest-
       bearing
       deposits     7,501,431   31,558 1.69   7,633,120   45,560 2.39
   Wholesale
    funding         4,440,446   24,951 2.23   3,767,182   30,529 3.21
                  ---------------------     ---------------------
Total interest-
 bearing
 liabilities       11,941,877   56,509 1.89  11,400,302   76,089 2.66
   Noninterest-
    bearing
    demand          1,619,773                 1,448,314
   Other
    liabilities       146,342                   173,868
   Stockholders'
    equity          1,308,505                 1,250,748
                  ------------              ------------
Total liabilities
 and
 stockholders'
 equity           $15,016,497$14,273,232
                  ============              ============

                              ---------                 ---------
Net interest
 income and rate
 spread (1)                   $133,426 3.52%            $131,805 3.59%
                              =========                 =========
Net interest
 margin (1)                            3.79%                     3.96%
Taxable
 equivalent
 adjustment                     $6,231$6,037
                              =========                 =========

----------------------------------------------------------------------

(1) The yield on tax exempt loans and securities is computed on a
    taxable equivalent basis using a tax rate of 35% for all periods
    presented and is net of the effects of certain disallowed interest
    deductions.
(2) Nonaccrual loans and loans held for sale have been included in the
    average balances.
(3) Interest income includes net loan fees.

    CONTACT: Investors:
             Associated Banc-Corp
             Joe Selner, 920-491-7120
             or
             Media:
             Associated Banc-Corp
             Jon Drayna, 920-491-7006

    SOURCE: Associated Banc-Corp