Press Release Details 5.23

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Associated 3rd Quarter Earnings Per Diluted Share Up 13 Percent

10/16/2003

GREEN BAY, Wis.--(BUSINESS WIRE)--Oct. 16, 2003--Associated Banc-Corp (NASDAQ:ASBC) earned $.79 per diluted share in the quarter that ended Sept. 30, 2003, a 12.9 percent increase from $.70 per diluted share for the same period in 2002. Net income was $58.4 million, compared to $53.5 million for the comparable quarter of 2002.

Return on average assets was 1.53 percent in the third quarter 2003 compared to 1.47 percent in the third quarter of 2002. Return on average equity was 17.75 percent compared to 16.73 percent in the year-earlier quarter.

For the nine months ended Sept. 30, 2003, diluted earnings per share were $2.32, up 11.5 percent from $2.08 per diluted share in the same period in 2002. Return on average assets was 1.54 percent and return on average equity was 17.82 percent, compared to 1.49 percent and 17.28 percent, respectively, for the nine months ended Sept. 30, 2002.

"We are pleased with our third quarter performance," Associated President and CEO Paul Beideman said. "Specifically, Associated's financial results in the third quarter reflect the continued strong contribution of our mortgage banking activity as well as solid growth in our transaction account deposits and home equity lines of credit," Beideman said.

Net interest income was $129.0 million for the third quarter, compared to $128.4 million in the year-earlier period, and $127.2 million for the second quarter of 2003. The net interest margin for third quarter 2003 was 3.78 percent, down from 3.96 percent a year ago and nearly unchanged from 3.79 percent for second quarter 2003. For the first nine months of 2003, net interest income was $383.6 million, up 3 percent compared to $371.6 million for the same period of 2002. Net interest margin was 3.82 percent for the first nine months of 2003, compared to 3.94 percent for the same period in 2002.

Total loans for the third quarter 2003 averaged $10.8 billion, an increase of $685 million or 7 percent compared to the third quarter a year earlier, and up 3 percent from the second quarter 2003, on an annualized basis.

Total deposits averaged $9.5 billion for the third quarter 2003, up $538 million or 6 percent compared to the third quarter last year, and up 16 percent from the second quarter 2003, on an annualized basis. Transaction account (demand, savings, interest-bearing demand and money market account) deposits were $6.2 billion, up 13 percent on average over the comparable third quarter of 2002, and up an annualized 22 percent over the second quarter 2003. Time deposits averaged $3.3 billion for the third quarter 2003, versus $3.4 billion for the comparable quarter last year, while up from $3.2 billion for second quarter 2003.

The provision for loan losses was $12.1 million for the third quarter of 2003, compared to $12.8 million for the same quarter last year, and unchanged from $12.1 million for the second quarter of 2003. For the first nine months of 2003, the provision for loan losses was $37.2 million, compared to $36.1 million for the same period last year. The allowance for loan losses was 1.71 percent of total loans at Sept. 30, 2003, 1.54 percent at Sept. 30, 2002, and 1.66 percent at June 30, 2003.

Net chargeoffs for the third quarter of 2003 were $8.3 million, compared to net chargeoffs of $6.3 million for third quarter 2002, and $10.1 million for the second quarter of 2003. For the nine months that ended Sept. 30, 2003, annualized net chargeoffs were 0.29 percent of average loans, the same as in the comparable period last year. Nonperforming assets were $131.5 million as of Sept. 30, 2003, compared to $131.9 million as of June 30, 2003 and up from $103.7 million a year ago.

"We are staying close to our customers to help them manage through the current soft economic environment and to support them as they plan for the future. This is the most effective way for Associated to manage its credit quality," Beideman said.

Noninterest income grew to $63.9 million for the third quarter, compared to $58.7 million in the same period of 2002. The 9 percent increase between the comparable quarters was primarily attributable to increases in mortgage banking revenue, retail commission income (attributable mostly to Associated's acquisition of CFG Insurance Services on April 1, 2003), and service charges on deposit accounts, offset partly by a decrease in credit card and other nondeposit fees (primarily from lower merchant fees resulting from the March 2003 sale of the company's merchant processing business). In comparison to second quarter 2003, noninterest income declined $6.3 million, with $5.2 million attributable to a decline in mortgage banking income. While secondary market mortgage production for the third quarter of 2003 was a record $1.4 billion, volatility in long-term interest rates throughout the quarter reduced gains on mortgage loans sold. Further, the recent increase in long-term interest rates has reduced mortgage refinancing applications and may result in lower mortgage origination volume and lower mortgage banking revenue in the fourth quarter of 2003.

Noninterest expense for the third quarter of 2003 declined slightly to $97.8 million, compared to $98.2 million for the third quarter of 2002. Mortgage servicing rights expense decreased $9.2 million between the comparable third quarter periods, primarily as a function of slower prepayment speeds; comparable previous quarters' results included impairment of mortgage servicing rights related to high levels of loan prepayment. Personnel expense was $54.8 million for the third quarter of 2003, up $7.2 million, from the year-earlier quarter, due mostly to the addition of CFG personnel, and merit and incentive increases between the years. In comparison to second quarter 2003, noninterest expense was down $6.1 million, led primarily by these same factors. Mortgage servicing rights expense was down $8.8 million, offset partly by increases in personnel, data processing and other costs, between the third and second quarters of 2003.

"Our 2003 earnings growth goal of 10 percent was predicated on an improving economy, moderate interest rate increases, and increased confidence among consumers and businesses. Although these improvements have not materialized to the degree we expected, we remain optimistic that we will, nevertheless, meet our income goal," Beideman said.

The company repurchased approximately 0.7 million shares of its common stock during the third quarter of 2003 at an average cost of $37.46 per share. Associated repurchased 1.9 million shares in the first nine months of 2003 at an average cost of $35.72 per share.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $15.1 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 that are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding 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.



Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp

                                   September     December
                                      30,           31,
(in thousands)                       2003          2002     % Change
---------------------------------------------------------------------
Assets
Cash and due from banks           $   340,042$   430,691    (21.0%)
Interest-bearing deposits in other
 financial institutions                 6,180        5,502      12.3%
Federal funds sold and securities
 purchased
 under agreements to resell            19,950        8,820     126.2%
Securities available for sale, at
 fair value                         3,415,574    3,362,669       1.6%
Loans held for sale                   390,332      305,836      27.6%
Loans                              10,289,242   10,303,225     (0.1%)
Allowance for loan losses            (176,223)    (162,541)      8.4%
                                  ------------ ------------
    Loans, net                     10,113,019   10,140,684     (0.3%)
Premises and equipment                131,873      132,713     (0.6%)
Goodwill                              224,388      212,112       5.8%
Other intangible assets                58,565       41,565      40.9%
Other assets                          414,246      402,683       2.9%
                                  ------------ ------------
    Total assets                  $15,114,169$15,043,275       0.5%
                                  ============ ============

Liabilities and Stockholders'
 Equity
Noninterest-bearing deposits      $ 1,804,596$ 1,773,699       1.7%
Interest-bearing deposits,
 excluding Brokered CDs             7,673,766    7,117,503       7.8%
Brokered CDs                          156,994      233,650    (32.8%)
                                  ------------ ------------
    Total deposits                  9,635,356    9,124,852       5.6%
Short-term borrowings               2,049,833    2,389,607    (14.2%)
Long-term debt                      1,806,316    1,906,845     (5.3%)
Company-obligated mandatorily
 redeemable
  preferred securities                186,788      190,111     (1.7%)
Accrued expenses and other
 liabilities                          134,928      159,677    (15.5%)
                                  ------------ ------------
    Total liabilities              13,813,221   13,771,092       0.3%
Stockholders' Equity
  Preferred stock                           -            -
  Common stock                            736          755     (2.5%)
  Surplus                             580,823      643,956     (9.8%)
  Retained earnings                   695,076      607,944      14.3%
  Accumulated other comprehensive
   income                              36,310       60,313    (39.8%)
  Deferred compensation                (1,744)           -       N/M
  Treasury stock at cost              (10,253)     (40,785)   (74.9%)
                                  ------------ ------------
    Total stockholders' equity      1,300,948    1,272,183       2.3%
                                   -----------  -----------
    Total liabilities and
     stockholders' equity         $15,114,169$15,043,275       0.5%
                                  ============ ============
N/M - Not meaningful.


                                                September
                                                    30,
(in thousands)                                     2002     % Change
---------------------------------------------------------------------
Assets
Cash and due from banks                        $   404,660    (16.0%)
Interest-bearing deposits in other
 financial institutions                              5,451      13.4%
Federal funds sold and securities purchased
 under agreements to resell                        109,650    (81.8%)
Securities available for sale, at fair value     3,432,758     (0.5%)
Loans held for sale                                379,136       3.0%
Loans                                           10,086,510       2.0%
Allowance for loan losses                         (155,288)     13.5%
                                               ------------
    Loans, net                                   9,931,222       1.8%
Premises and equipment                             133,596     (1.3%)
Goodwill                                           212,112       5.8%
Other intangible assets                             39,869      46.9%
Other assets                                       396,248       4.5%
                                               ------------
    Total assets                               $15,044,702       0.5%
                                               ============

Liabilities and Stockholders' Equity
Noninterest-bearing deposits                   $ 1,740,932       3.7%
Interest-bearing deposits, excluding Brokered
 CDs                                             7,018,506       9.3%
Brokered CDs                                       187,915    (16.5%)
                                               ------------
    Total deposits                               8,947,353       7.7%
Short-term borrowings                            2,630,285    (22.1%)
Long-term debt                                   1,830,260     (1.3%)
Company-obligated mandatorily redeemable
  preferred securities                             186,739       0.0%
Accrued expenses and other liabilities             179,374    (24.8%)
                                               ------------
    Total liabilities                           13,774,011       0.3%
Stockholders' Equity
  Preferred stock                                        -
  Common stock                                         759     (3.0%)
  Surplus                                          655,540    (11.4%)
  Retained earnings                                581,145      19.6%
  Accumulated other comprehensive income            76,644    (52.6%)
  Deferred compensation                                  -       N/M
  Treasury stock at cost                           (43,397)   (76.4%)
                                               ------------
    Total stockholders' equity                   1,270,691       2.4%
                                               ------------
    Total liabilities and stockholders' equity $15,044,702       0.5%
                                               ============
N/M - Not meaningful.



---------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
Associated Banc-Corp


                                           For The Three
                                           Months Ended,
                                           September 30,
                                        -------------------
(in thousands, except per share amounts)  2003      2002    % Change
---------------------------------------------------------------------
Interest Income
Interest and fees on loans              $145,246$158,886     (8.6%)
Interest and dividends on investment
 securities
 and deposits with other financial
  institutions
  Taxable                                 26,710    30,918    (13.6%)
  Tax-exempt                               9,825     9,916     (0.9%)
Interest on federal funds sold and
 securities
 purchased under agreements to resell         38        45    (15.6%)
                                        --------- ---------
    Total interest income                181,819   199,765     (9.0%)
Interest Expense
Interest on deposits                      30,327    39,336    (22.9%)
Interest on short-term borrowings          6,757    13,039    (48.2%)
Interest on long-term debt and capital
 securities                               15,759    19,032    (17.2%)
                                        --------- ---------
    Total interest expense                52,843    71,407    (26.0%)
                                        --------- ---------
Net Interest Income                      128,976   128,358       0.5%
Provision for loan losses                 12,118    12,831     (5.6%)
                                        --------- ---------
Net interest income after provision for
 loan losses                             116,858   115,527       1.2%
Noninterest Income
Trust service fees                         7,001     6,722       4.2%
Service charges on deposit accounts       13,338    12,261       8.8%
Mortgage banking                          23,635    20,468      15.5%
Credit card and other nondeposit fees      5,435     7,045    (22.9%)
Retail commissions                         6,830     3,635      87.9%
Bank owned life insurance income           3,532     3,545     (0.4%)
Asset sale gains, net                        871       658      32.4%
Investment securities gains, net               1       374       N/M
Other                                      3,245     3,948    (17.8%)
                                        --------- ---------
    Total noninterest income              63,888    58,656       8.9%
Noninterest Expense
Personnel expense                         54,795    47,581      15.2%
Occupancy                                  7,101     6,553       8.4%
Equipment                                  3,178     3,909    (18.7%)
Data processing                            6,322     5,420      16.6%
Business development and advertising       4,113     3,728      10.3%
Stationery and supplies                    1,651     1,395      18.4%
FDIC expense                                 353       384     (8.1%)
Mortgage servicing rights expense          4,199    13,372    (68.6%)
Other intangible amortization                871       576      51.2%
Loan expense                               1,806     3,967    (54.5%)
Other                                     13,382    11,298      18.4%
                                        --------- ---------
    Total noninterest expense             97,771    98,183     (0.4%)
                                        --------- ---------
Income before income taxes                82,975    76,000       9.2%
Income tax expense                        24,589    22,528       9.1%
                                        --------- ---------
Net Income                              $ 58,386$ 53,472       9.2%
                                        ========= =========

Earnings Per Share:
  Basic                                 $   0.79$   0.71      11.3%
  Diluted                               $   0.79$   0.70      12.9%
Average Shares Outstanding:
  Basic                                   73,473    75,158     (2.2%)
  Diluted                                 74,323    76,047     (2.3%)

N/M - Not meaningful.


                                        For The Nine Months
                                               Ended,
                                           September 30,
                                        -------------------
(in thousands, except per share amounts)  2003      2002    % Change
---------------------------------------------------------------------
Interest Income
Interest and fees on loans              $441,527$468,556     (5.8%)
Interest and dividends on investment
 securities
 and deposits with other financial
  institutions
  Taxable                                 79,430    97,149    (18.2%)
  Tax-exempt                              29,822    29,884     (0.2%)
Interest on federal funds sold and
 securities
 purchased under agreements to resell        127       339    (62.5%)
                                        --------- ---------
    Total interest income                550,906   595,928     (7.6%)
Interest Expense
Interest on deposits                      93,875   133,125    (29.5%)
Interest on short-term borrowings         23,766    40,534    (41.4%)
Interest on long-term debt and capital
 securities                               49,640    50,716     (2.1%)
                                        --------- ---------
    Total interest expense               167,281   224,375    (25.4%)
                                        --------- ---------
Net Interest Income                      383,625   371,553       3.2%
Provision for loan losses                 37,210    36,085       3.1%
                                        --------- ---------
Net interest income after provision for
 loan losses                             346,415   335,468       3.3%
Noninterest Income
Trust service fees                        21,427    21,815     (1.8%)
Service charges on deposit accounts       37,611    33,874      11.0%
Mortgage banking                          78,583    42,709      84.0%
Credit card and other nondeposit fees     18,023    20,211    (10.8%)
Retail commissions                        17,540    14,136      24.1%
Bank owned life insurance income          10,373    10,284       0.9%
Asset sale gains, net                        203     1,030    (80.3%)
Investment securities gains, net             702       374       N/M
Other                                     14,795    11,526      28.4%
                                        --------- ---------
    Total noninterest income             199,257   155,959      27.8%
Noninterest Expense
Personnel expense                        158,275   141,339      12.0%
Occupancy                                 21,367    19,340      10.5%
Equipment                                  9,612    11,126    (13.6%)
Data processing                           17,542    15,527      13.0%
Business development and advertising      11,029    10,300       7.1%
Stationery and supplies                    4,964     5,225     (5.0%)
FDIC expense                               1,078     1,158     (6.9%)
Mortgage servicing rights expense         28,818    20,143      43.1%
Other intangible amortization              2,091     1,674      24.9%
Loan expense                               6,104    10,280    (40.6%)
Other                                     38,967    35,674       9.2%
                                        --------- ---------
    Total noninterest expense            299,847   271,786      10.3%
                                        --------- ---------
Income before income taxes               245,825   219,641      11.9%
Income tax expense                        72,777    62,363      16.7%
                                        --------- ---------
Net Income                              $173,048$157,278      10.0%
                                        ========= =========

Earnings Per Share:
  Basic                                 $   2.34$   2.10      11.4%
  Diluted                               $   2.32$   2.08      11.5%
Average Shares Outstanding:
  Basic                                   73,892    74,748     (1.1%)
  Diluted                                 74,596    75,666     (1.4%)

N/M - Not meaningful.



---------------------------------------------------------------------
Selected Quarterly Information
Associated Banc-Corp
---------------------------------------------------------------------
(in thousands,
 except per share
 data)              YTD 2003     YTD 2002   3rd Qtr 2003 2nd Qtr 2003
---------------------------------------------------------------------
Summary of
 Operations
Net interest
 income               383,625      371,553      128,976      127,195
Provision for loan
 losses                37,210       36,085       12,118       12,132
Net interest
 income after
 provision for
 loan losses          346,415      335,468      116,858      115,063
Asset sale gains
 (losses), net            203        1,030          871         (790)
Investment
 securities gains
 (losses), net            702          374            1        1,027
Noninterest income
 (excluding
 securities &
 asset gains)         198,352      154,555       63,016       69,923
Noninterest
 expense              299,847      271,786       97,771      103,919
Income taxes           72,777       62,363       24,589       24,635
Net income            173,048      157,278       58,386       56,669
Taxable equivalent
 adjustment            18,673       18,091        6,165        6,231

---------------------------------------------------------------------
Per Common Share
 Data (1)
Net income:
  Basic           $      2.34$      2.10$      0.79$      0.77
  Diluted                2.32         2.08         0.79         0.76
Dividends                0.99         0.90         0.34         0.34

Market Value:
  High            $     38.90$     38.25$     38.90$     38.41
  Low                   32.15        30.37        37.12        32.15
  Close                 37.89        31.73        37.89        36.61
Book value              17.77        17.03        17.77        17.88

---------------------------------------------------------------------
Performance Ratios
 (annualized)
Net interest
 margin (FTE)            3.82%        3.94%        3.78%        3.79%
Return on average
 assets                  1.54         1.49         1.53         1.51
Return on average
 equity                 17.82        17.28        17.75        17.37
Efficiency ratio
 (2)                    49.92        49.94        49.34        51.10
Effective tax rate      29.61        28.39        29.63        30.30
Dividend payout
 ratio (basic)          42.31        42.94        43.04        44.16

---------------------------------------------------------------------
Average Balances
Assets            $15,013,216$14,093,749$15,152,676$15,016,497
Earning assets     13,986,544   13,100,514   14,128,702   13,991,615
Interest-bearing
 liabilities       11,928,563   11,263,140   11,955,420   11,941,877
Loans              10,712,738    9,814,880   10,813,769   10,743,430
Deposits            9,171,353    8,905,076    9,485,000    9,121,204
Stockholders'
 equity             1,298,234    1,217,165    1,304,983    1,308,505
Stockholders'
 equity / assets         8.65%        8.64%        8.61%        8.71%

---------------------------------------------------------------------
At Period End
Assets                                      $15,114,169$15,218,816
Loans                                        10,289,242   10,387,364
Allowance for loan
 losses                                         176,223      172,440
Deposits                                      9,635,356    9,453,460
Stockholders'
 equity                                       1,300,948    1,318,246
Stockholders'
 equity / assets                                   8.61%        8.66%
Shares
 outstanding, end
 of period                                       73,227       73,736

---------------------------------------------------------------------
(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.

---------------------------------------------------------------------
(in thousands,
 except per share
 data)                         1st Qtr 2003 4th Qtr 2002 3rd Qtr 2002
---------------------------------------------------------------------
Summary of Operations
Net interest income                127,454      129,713      128,358
Provision for loan losses           12,960       14,614       12,831
Net interest income after
 provision for loan losses         114,494      115,099      115,527
Asset sale gains (losses), net         122         (373)         658
Investment securities gains
 (losses), net                        (326)        (801)         374
Noninterest income (excluding
 securities & asset gains)          65,413       65,523       57,624
Noninterest expense                 98,157      102,763       98,183
Income taxes                        23,553       23,244       22,528
Net income                          57,993       53,441       53,472
Taxable equivalent adjustment        6,277        5,981        5,991

---------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                        $      0.78$      0.72$      0.71
  Diluted                             0.77         0.71         0.70
Dividends                             0.31         0.31         0.31

Market Value:
  High                         $     35.22$     34.21$     36.96
  Low                                32.33        27.20        30.64
  Close                              32.33        33.94        31.73
Book value                           17.41        17.13        17.03

---------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin (FTE)             3.87%        3.87%        3.96%
Return on average assets              1.58         1.42         1.47
Return on average equity             18.36        16.62        16.73
Efficiency ratio (2)                 49.29        51.07        51.14
Effective tax rate                   28.88        30.31        29.64
Dividend payout ratio (basic)        39.74        43.06        43.66

---------------------------------------------------------------------
Average Balances
Assets                         $14,867,339$14,901,747$14,460,358
Earning assets                  13,836,102   13,870,491   13,427,986
Interest-bearing liabilities    11,886,642   11,792,552   11,459,673
Loans                           10,578,430   10,559,154   10,128,826
Deposits                         8,901,441    8,934,668    8,947,047
Stockholders' equity             1,280,950    1,275,914    1,268,355
Stockholders' equity / assets         8.62%        8.56%        8.77%

---------------------------------------------------------------------
At Period End
Assets                         $15,089,166$15,043,275$15,044,702
Loans                           10,275,469   10,303,225   10,086,510
Allowance for loan losses          170,391      162,541      155,288
Deposits                         9,060,234    9,124,852    8,947,353
Stockholders' equity             1,285,866    1,272,183    1,270,691
Stockholders' equity / assets         8.52%        8.46%        8.45%
Shares outstanding, end of
 period                             73,870       74,281       74,598

---------------------------------------------------------------------
(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
                                             September 30,
                                  -----------------------------------
(in thousands,
 except per share data)               2003         2002     % Change
---------------------------------------------------------------------
Allowance for Loan Losses
Beginning balance                 $   172,440$   148,733      15.9%
Balance related to acquisitions             -            -         -
Provision for loan losses              12,118       12,831     (5.6%)
Charge offs                            (9,340)      (7,508)     24.4%
Recoveries                              1,005        1,232    (18.4%)
                                  ------------ ------------
Net charge offs                        (8,335)      (6,276)     32.8%
                                  ------------ ------------
Ending Balance                    $   176,223$   155,288      13.5%
                                  ============ ============

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

Credit Quality                    3rd Qtr 2003 2nd Qtr 2003 % Change
                                  ------------ ------------ ---------
Nonaccrual loans                  $   114,067$   110,820       2.9%
Loans 90 or more days past due
 and still accruing (1)                11,055        6,311      75.2%
Restructured loans                         44           46     (4.3%)
                                  ------------ ------------
    Total nonperforming loans         125,166      117,177       6.8%
Other real estate owned                 6,380       14,707    (56.6%)
                                  ------------ ------------
    Total nonperforming assets        131,546      131,884     (0.3%)
                                  ============ ============
Net charge offs                         8,335       10,083    (17.3%)

Allowance for loan losses / loans        1.71%        1.66%
Allowance for loan losses /
 nonperforming loans                   140.79       147.16
Nonperforming loans / total loans        1.22         1.13
Nonperforming assets / total
 assets                                  0.87         0.87
Net charge offs / average loans
 (annualized)                            0.31         0.38
Year-to-date net charge offs /
 average loans                           0.29         0.29

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

Period End Loan Composition
                                    Sept 30,      Dec 31,
                                      2003         2002     % Change
                                  ------------ ------------ ---------
Commercial, financial &
 agricultural                     $ 2,186,214$ 2,213,986     (1.3%)
Real estate - construction          1,035,674      910,581      13.7%
Commercial real estate              3,240,757    3,128,826       3.6%
Lease financing                        37,193       38,352     (3.0%)
                                  ------------ ------------
  Commercial                        6,499,838    6,291,745       3.3%
Residential mortgage                2,166,187    2,430,746    (10.9%)
Home equity                           912,142      864,631       5.5%
                                  ------------ ------------
  Residential real estate           3,078,329    3,295,377     (6.6%)
Consumer                              711,075      716,103     (0.7%)
                                  ------------ ------------
  Total loans                     $10,289,242$10,303,225     (0.1%)
                                  ============ ============

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

Period End Deposit Composition
                                   Sept 30,    Dec 31, 2002
                                      2003                  % Change
                                  ------------ ------------ ---------
Demand                            $ 1,804,596$ 1,773,699       1.7%
Savings                               924,036      895,855       3.1%
Interest-bearing demand             2,086,964    1,468,193      42.1%
Money market                        1,559,769    1,754,313    (11.1%)
Brokered CDs                          156,994      233,650    (32.8%)
Other time deposits                 3,102,997    2,999,142       3.5%
                                  ------------ ------------
  Total deposits                  $ 9,635,356$ 9,124,852       5.6%
                                  ============ ============

---------------------------------------------------------------------
N/M = Not Meaningful
(1) Does not include guaranteed student loans. Guaranteed student
    loans 90+ days past due and still accruing totaled $14.1 million
    as of September 30, 2003.


-------------------------------------------- ------------ ---------
Financial Summary and Comparison
Associated Banc-Corp                       Nine months ended
                                             September 30,
                                  -----------------------------------
(in thousands,
except per share data)                2003         2002     % Change
---------------------------------------------------------------------
Allowance for Loan Losses
Beginning balance                 $  162,541$   128,204       26.8%
Balance related to acquisitions            -       11,985        N/M
Provision for loan losses             37,210       36,085        3.1%
Charge offs                          (26,631)     (24,295)       9.6%
Recoveries                             3,103        3,309      (6.2%)
                                  ------------ ------------
Net charge offs                      (23,528)     (20,986)      12.1%
                                  ------------ ------------
Ending Balance                    $  176,223$   155,288       13.5%
                                  ============ ============

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

Credit Quality                     1st Qtr    4th Qtr 2002  3rd Qtr
                                      2003                    2002
                                  ------------ ------------ ---------
Nonaccrual loans                  $   90,384$    94,132$  93,250
Loans 90 or more days past due and
 still accruing (1)                    3,425        3,912      5,981
Restructured loans                       844        1,258      1,110
                                  ------------ ------------ ---------
    Total nonperforming loans         94,653       99,302    100,341
Other real estate owned               12,949       11,448      3,331
                                  ------------ ------------ ---------
    Total nonperforming assets       107,602      110,750    103,672
                                  ============ ============ =========
Net charge offs                        5,110        7,361      6,276

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

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

Period End Loan Composition
                                              Sept 30,
                                                 2002      % Change
                                             ------------ ----------
Commercial, financial &
 agricultural                                $ 2,175,931        0.5%
Real estate - construction                       850,287       21.8%
Commercial real estate                         3,082,890        5.1%
Lease financing                                   36,274        2.5%
                                             ------------
  Commercial                                   6,145,382        5.8%
Residential mortgage                           2,381,120      (9.0%)
Home equity                                      831,169        9.7%
                                             ------------
  Residential real estate                      3,212,289      (4.2%)
Consumer                                         728,839      (2.4%)
                                             ------------
  Total loans                                $10,086,510        2.0%
                                             ============

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

Period End Deposit Composition
                                              Sept 30,
                                                 2002      % Change
                                             ------------ ----------
Demand                                       $ 1,740,932        3.7%
Savings                                          916,039        0.9%
Interest-bearing demand                        1,212,672       72.1%
Money market                                   1,760,334     (11.4%)
Brokered CDs                                     187,915     (16.5%)
Other time deposits                            3,129,461      (0.8%)
                                             ------------
  Total deposits                             $ 8,947,353        7.7%
                                             ============

---------------------------------------------------------------------
N/M = Not Meaningful
(1) Does not include guaranteed student loans. Guaranteed student
    loans 90+ days past due and still accruing totaled $14.1 million
    as of September 30, 2003.



----------------------------------------------------------------------
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp

                                     Nine months ended September 30,
                                                    2003
                                     ---------------------------------
                                        Average     Interest   Average
                                        Balance     Income /   Yield /
                                                     Expense     Rate
                                     ------------ ------------ -------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                     $ 6,455,171$   249,509    5.10%
      Residential real estate          3,547,875      154,138    5.80
      Consumer                           709,692       38,660    7.28
                                     ------------ ------------
         Total loans                  10,712,738      442,307    5.48
   Investments and other               3,273,806      127,272    5.18
                                     ------------ ------------
Total earning assets                  13,986,544      569,579    5.41
   Other assets, net                   1,026,672
                                     ------------
Total assets                         $15,013,216
                                     ============

Interest-bearing liabilities:
   Savings deposits                  $   930,105$     3,997    0.57%
   Interest-bearing demand deposits    1,708,600       10,995    0.86
   Money market deposits               1,640,707       11,694    0.95
   Time deposits, excluding Brokered
    CDs                                3,062,576       64,825    2.83
                                     ------------ ------------
      Total interest-bearing
       deposits, excluding Brokered
       CDs                             7,341,988       91,511    1.67
   Brokered CDs                          184,494        2,364    1.71
                                     ------------ ------------
      Total interest-bearing deposits  7,526,482       93,875    1.67
   Wholesale funding                   4,402,081       73,406    2.20
                                     ------------ ------------
Total interest-bearing liabilities    11,928,563      167,281    1.87
   Noninterest-bearing demand          1,644,871
   Other liabilities                     141,548
   Stockholders' equity                1,298,234
                                     ------------
Total liabilities and stockholders'
 equity                              $15,013,216
                                     ============

                                                  ------------
Net interest income and rate spread(1)            $   402,298    3.54%
                                                   ===========
Net interest margin (1)                                          3.82%
Taxable equivalent adjustment                     $    18,673
                                                   ===========

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

                                     Three months ended September 30,
                                                    2003
                                     ---------------------------------
                                        Average     Interest   Average
                                        Balance     Income /   Yield /
                                                     Expense    Rate
                                     ------------ ------------ -------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                     $ 6,565,202$    83,321    4.97%
      Residential real estate          3,541,464       49,538    5.55
      Consumer                           707,103       12,657    7.10
                                     ------------ ------------
         Total loans                  10,813,769      145,516    5.30
   Investments and other               3,314,933       42,468    5.12
                                     ------------ ------------
Total earning assets                  14,128,702      187,984    5.26
   Other assets, net                   1,023,974
                                     ------------
Total assets                         $15,152,676
                                     ============

Interest-bearing liabilities:
   Savings deposits                  $   935,402$     1,113    0.47%
   Interest-bearing demand deposits    1,938,111        4,070    0.83
   Money market deposits               1,586,092        3,430    0.86
   Time deposits, excluding Brokered
    CDs                                3,120,919       21,213    2.70
                                     ------------ ------------
      Total interest-bearing
       deposits, excluding Brokered
       CDs                             7,580,524       29,826    1.56
   Brokered CDs                          146,670          501    1.36
                                     ------------ ------------
      Total interest-bearing deposits  7,727,194       30,327    1.56
   Wholesale funding                   4,228,226       22,516    2.09
                                     ------------ ------------
Total interest-bearing liabilities    11,955,420       52,843    1.75
   Noninterest-bearing demand          1,757,806
   Other liabilities                     134,467
   Stockholders' equity                1,304,983
                                     ------------
Total liabilities and stockholders'
 equity                              $15,152,676
                                     ============

                                                  ------------
Net interest income and rate spread(1)            $   135,141    3.51%
                                                  ============
Net interest margin (1)                                          3.78%
Taxable equivalent adjustment                     $     6,165
                                                  ============

----------------------------------------------------------------------
(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.


Net Interest Income Analysis - Taxable Equivalent Basis (continued)
Associated Banc-Corp

                                      Nine months ended September 30,
                                                    2002
                                     ---------------------------------
                                        Average     Interest   Average
                                        Balance     Income /   Yield /
                                                     Expense    Rate
                                     ------------ ------------ -------

 Earning assets:
    Loans: (1) (2) (3)
       Commercial                    $ 5,839,172$   261,173    5.90%
       Residential real estate         3,268,018      165,944    6.77
       Consumer                          707,690       42,286    7.98
                                     ------------ ------------
          Total loans                  9,814,880      469,403    6.34
    Investments and other              3,285,634      144,616    5.87
                                     ------------ ------------
 Total earning assets                 13,100,514      614,019    6.22
    Other assets, net                    993,235
                                     ------------
 Total assets                        $14,093,749
                                     ============

 Interest-bearing liabilities:
    Savings deposits                 $   881,727$     5,147    0.78%
    Interest-bearing demand deposits   1,053,748        6,268    0.80
    Money market deposits              1,913,528       19,458    1.36
    Time deposits, excluding Brokered
     CDs                               3,330,936       97,622    3.92
                                     ------------ ------------
       Total interest-bearing
        deposits, excluding Brokered
        CDs                            7,179,939      128,495    2.39
    Brokered CDs                         287,199        4,630    2.16
                                     ------------ ------------
       Total interest-bearing
        deposits                       7,467,138      133,125    2.38
    Wholesale funding                  3,796,002       91,250    3.17
                                     ------------ ------------
 Total interest-bearing liabilities   11,263,140      224,375    2.65
    Noninterest-bearing demand         1,437,938
    Other liabilities                    175,506
    Stockholders' equity               1,217,165
                                     ------------
 Total liabilities and stockholders'
  equity                             $14,093,749
                                     ============

                                                  ------------
 Net interest income and rate spread(1)           $   389,644    3.57%
                                                  ============
 Net interest margin (1)                                         3.94%
 Taxable equivalent adjustment                    $    18,091
                                                  ============

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

                                     Three months ended September 30,
                                                    2002
                                     ---------------------------------
                                        Average     Interest   Average
                                        Balance     Income /   Yield /
                                                     Expense    Rate
                                     ------------ ------------ -------

 Earning assets:
    Loans: (1) (2) (3)
       Commercial                    $ 6,072,648$    89,715    5.80%
       Residential real estate         3,333,818       55,546    6.62
       Consumer                          722,360       13,893    7.62
                                     ------------ ------------
          Total loans                 10,128,826      159,154    6.20
    Investments and other              3,299,160       46,602    5.65
                                     ------------ ------------
 Total earning assets                 13,427,986      205,756    6.06
    Other assets, net                  1,032,372
                                     ------------
 Total assets                        $14,460,358
                                     ============

 Interest-bearing liabilities:
    Savings deposits                 $   914,804$     1,819    0.79%
    Interest-bearing demand deposits   1,192,154        2,841    0.95
    Money market deposits              1,840,435        5,991    1.29
    Time deposits, excluding Brokered
     CDs                               3,187,992       27,229    3.39
                                     ------------ ------------
       Total interest-bearing
        deposits, excluding Brokered
        CDs                            7,135,385       37,880    2.11
    Brokered CDs                         246,676        1,456    2.34
                                     ------------ ------------
       Total interest-bearing
        deposits                       7,382,061       39,336    2.11
    Wholesale funding                  4,077,612       32,071    3.09
                                     ------------ ------------
 Total interest-bearing liabilities   11,459,673       71,407    2.46
    Noninterest-bearing demand         1,564,986
    Other liabilities                    167,344
    Stockholders' equity               1,268,355
                                     ------------
 Total liabilities and stockholders'
  equity                             $14,460,358
                                     ============

                                                  ------------
 Net interest income and rate spread(1)           $   134,349    3.60%
                                                  ============
 Net interest margin (1)                                         3.96%
 Taxable equivalent adjustment                    $     5,991
                                                  ============

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

    SOURCE: Associated Banc-Corp
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