Press Release Details 5.23

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Associated 3rd Quarter Earnings Per Diluted Share Up 9.6 Percent

10/19/2004

GREEN BAY, Wis.--(BUSINESS WIRE)--Oct. 19, 2004--Associated Banc-Corp (NASDAQ:ASBC) earned $.57 per diluted share in the quarter ended Sept. 30, 2004, up 9.6 percent compared to $.52 per diluted share for the same period in 2003, and $.58 per diluted share for the second quarter of 2004.

Return on average assets was 1.60 percent in the third quarter 2004 compared to 1.53 percent in the third quarter of 2003, and 1.67 percent in the second quarter of 2004. Third quarter return on average equity was 17.76 percent compared to 17.75 percent in the year-earlier quarter and 18.87 percent in second quarter of 2004.

For the nine months ended Sept. 30, 2004, diluted earnings per share were $1.68, up 8.4 percent from $1.55 per diluted share in the same period in 2003. Return on average assets was 1.62 percent year-to-date and return on average equity was 18.00 percent, compared to 1.54 percent and 17.82 percent, respectively, for the nine months ended Sept. 30, 2003.

"Our third quarter results reflect progress on our strategy to diversify revenue. In addition, expenses remain well controlled, and improvements in our asset quality did not require a loan loss provision in the third quarter. Our progress has allowed us to overcome the industry-wide decline in mortgage banking revenue relative to the year-earlier period, resulting in continued bottom line improvement," Associated President and CEO Paul Beideman said.

Net income was $63.4 million for the quarter that ended Sept. 30, 2004. This compares to $58.4 million for the third quarter of 2003 and $64.5 million for second quarter 2004. On a year-to-date basis, net income was $187.4 million, up 8.3 percent from $173.0 million for the comparable period of 2003.

The comparisons between 2004 and 2003 continue to be affected by significantly lower refinancing activity throughout the mortgage banking industry that began most notably in the fourth quarter 2003, impacting both mortgage banking revenue and mortgage servicing rights expense. Gains on sales of mortgage loans have moved in line with the lower mortgage production, generally reducing mortgage banking revenue. On the other hand, loan prepayment speeds, a key valuation factor, have varied between the comparable periods, impacting the recorded value of the mortgage servicing asset. Mortgage servicing rights expense included a $2.0 million valuation reserve addition for third quarter 2004 (compared to no valuation adjustment for the third quarter 2003), and a $2.2 million valuation reserve recovery for the nine months of 2004 (compared to $15.8 million additional valuation reserve for the comparable 2003 period).

For the comparable third quarter periods, mortgage banking revenue was down $15.1 million and mortgage servicing rights expense was up $1.8 million, for a net unfavorable pre-tax impact of $16.9 million. For the comparable nine-month periods, mortgage banking revenue was down $48.6 million while mortgage servicing rights expense was down $18.4 million, for a net unfavorable pre-tax impact of $30.2 million. On a sequential quarter basis, mortgage banking revenue was down compared to the second quarter of 2004 by $2.5 million (influenced mostly by lower volumes) and mortgage servicing rights expense was up $8.3 million (increased mostly by lower valuation due to faster prepayment speeds), for a net unfavorable pre-tax impact of $10.8 million.

Also, Associated's acquisition of Jabas Group, Inc., one of Wisconsin's leading employee benefit firms, on April 1, 2004, affects the comparison of retail commission income and noninterest expenses between third quarter and year-to-date periods. Associated's acquisition of CFG Insurance on April 1, 2003 affects year-to-date comparisons.

Associated Banc-Corp's net interest income rose to $133.2 million in the third quarter, compared to $129.0 million in the third quarter of 2003 and $131.9 million in the second quarter of 2004. For the first nine months of 2004, net interest income was $394.2 million, up 2.7 percent compared to $383.6 million for the same period of 2003.

The net interest margin was 3.76 percent for the third quarter of 2004, compared to 3.78 percent for third quarter of 2003 and 3.80 percent for the second quarter of 2004. For the comparable nine-month periods, the net interest margin was 3.79 percent compared to 3.82 percent last year.

Total loans at the end of the third quarter 2004 were $10.8 billion, up 5.3 percent from $10.3 billion a year earlier, including 6.5 percent growth in commercial loans and 14.9 percent growth in home equity loans. Since June 30, 2004, total loans increased 10.3 percent on an annualized basis, led by 12.8 percent annualized growth in commercial loans.

Total deposits were $9.7 billion as of Sept. 30, 2004, up from $9.6 billion for both Sept. 30, 2003 and June 30, 2004. Demand deposits increased 3.5 percent from a year ago, and grew at a 9.9 percent annualized rate from June 30 to Sept. 30, 2004.

No provision for loan losses was required for the third quarter of 2004, a result of sustained improvement in asset quality trends and an adequate level of allowance for loan losses. The allowance for loan losses of $175.0 million represented 1.62 percent of total loans at Sept. 30, 2004, compared to 1.71 percent at Sept. 30, 2003, while for the same periods nonperforming loans declined 26.9 percent from $125.2 million to $91.5 million.

Net charge-offs have been declining as well. On a year-to-date basis net charge-offs were $13.7 million, down 41.9 percent from $23.5 million for the comparable nine-month period of 2003. Quarterly net charge-offs were $3.0 million, $5.6 million and $8.3 million for third quarter 2004, second quarter 2004 and third quarter 2003, respectively.

On a year-to-date basis, the provision for loan losses was $11.1 million compared to $37.2 million for the nine-month period of 2003, and net charge-offs were $13.7 million (or 0.17 percent of average loans, annualized) versus $23.5 million (or 0.29 percent) for the comparable period of 2003.

For the third consecutive quarter, nonperforming loans to total loans were below 0.90 percent and nonperforming assets to total assets were below 0.70 percent. Nonperforming loans were $91.5 million, or 0.84 percent of loans at Sept. 30, 2004, compared to 0.81 percent for second quarter 2004 and 1.22 percent for third quarter 2003. Nonperforming assets were $96.0 million, or 0.59 percent of total assets at Sept. 30, 2004, compared to 0.60 percent for second quarter 2004 and 0.87 percent for third quarter 2003.

Excluding mortgage banking revenue, noninterest income was $46.5 million for third quarter 2004, up from $40.3 million for the third quarter of 2003, and comparable to $46.5 million for second quarter 2004. Compared to the third quarter of 2003, insurance and brokerage retail commissions increased $5.1 million, primarily due to the inclusion of Jabas and $0.8 million higher fixed annuity sales commissions. Credit card and other nondeposit fees were up $0.8 million, or 15.1 percent, particularly from stronger credit card fees. Trust service fees were up $0.8 million, or 11.0 percent, in line with the growth in assets under management.

On a year-to-date basis, noninterest income excluding mortgage banking revenue was $136.9 million, or 13.5 percent higher than $120.7 million for the first nine months of 2003. The increase was led by retail commission revenues that nearly doubled as a result of the Jabas and CFG acquisitions and increased annuities sales commissions, as well as solid growth in trust fees and service charges on deposit accounts.

Excluding mortgage servicing rights expense, noninterest expense was $89.0 million for third quarter 2004, down 2.8 percent from $91.6 million for the comparable 2003 period, and down 3.2 percent from $92.0 million for second quarter 2004. Despite the inclusion of Jabas operating expenses, declines have been achieved in most noninterest expense categories.

On a year-to-date basis, noninterest expense excluding mortgage servicing rights expense was $267.9 million for the first nine months of 2004, only 0.8 percent higher than $265.7 million for the comparative period last year. The efficiency ratio improved to 48.58 percent, compared to 49.47 percent for the first nine months of 2003.

"We are continuing to invest in our capabilities to diversify Associated's revenue streams. We see positive momentum in our fee-based businesses, and our investments in our people are beginning to show results as the pace of commercial and retail lending improves, along with growth in demand deposits. We are also creating positive operating leverage by continuing our focus on expense control.

"Given the current trends in our business, we remain confident that we can meet or exceed the consensus of analysts' estimates for our 2004 earnings," Beideman said.

"Additionally, we look forward to the vote of First Federal Capital Corp shareholders on Oct. 20. We feel very positive about the benefits of this combination. Integration planning continues to progress well, and we remain on target for a systems conversion and integration in the first quarter of 2005," Beideman said. Upon a successful shareholder vote, the company expects to close the transaction at the end of October.

Associated did not repurchase any shares in the third quarter under its current authorizations. Year-to-date repurchases through Sept. 30 total 0.7 million shares at $28.91 average cost per share.

The company will host a conference call for investors and analysts at 3 p.m. CDT today. The toll-free dial-in number is 877-654-5513. Participants should ask the operator for the Associated Banc-Corp earnings call, number 1557845. An archived recording of the call will be available for two weeks.

Associated Banc-Corp has more than 200 banking offices serving more than 150 communities in Wisconsin, Illinois, and Minnesota. Following the integration of First Federal, the company will have approximately 300 offices. 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.

Tables follow.
----------------------------------------------------------------------

Consolidated Balance Sheets (Unaudited)
Associated Banc-CorpSeptember 30, December 31,        September 30,
(in thousands)     2004         2003     % Change    2003     % Change
----------------------------------------------------------------------
Assets
Cash and due
 from banks      $286,799     $389,140   (26.3%)   $340,042   (15.7%)
Interest-bearing
 deposits in
 other
 financial
 institutions      10,381        7,434    39.6%       6,180    68.0%
Federal funds
 sold and
 securities
 purchased
 under agreements
 to resell         63,105        3,290  1818.1%      19,950   216.3%
Securities
 available for
 sale, at fair
 value          4,166,760    3,773,784    10.4%   3,415,574    22.0%
Loans held for
 sale              72,266      104,336   (30.7%)    390,332   (81.5%)
Loans          10,830,627   10,291,810     5.2%  10,289,242     5.3%
Allowance for
 loan losses     (175,007)    (177,622)   (1.5%)   (176,223)   (0.7%)
              ------------ ------------         ------------
  Loans, net   10,655,620   10,114,188     5.4%  10,113,019     5.4%
Premises and
 equipment        131,288      131,315    (0.0%)    131,873    (0.4%)
Goodwill          232,564      224,388     3.6%     224,388     3.6%
Intangible
 assets            69,863       63,509    10.0%      58,565    19.3%
Other assets      447,115      436,510     2.4%     414,246     7.9%
              ------------ ------------         ------------
  Total
   assets     $16,135,761  $15,247,894     5.8% $15,114,169     6.8%
              ============ ============         ============

Liabilities and
 Stockholders'
 Equity
Noninterest-
 bearing
 deposits      $1,867,905   $1,814,446     2.9%  $1,804,596     3.5%
Interest-bearing
 deposits,
 excluding
 Brokered CDs   7,623,042    7,813,267    (2.4%)  7,673,766    (0.7%)
Brokered CDs      186,326      165,130    12.8%     156,994    18.7%
              ------------ ------------         ------------
  Total
   deposits     9,677,273    9,792,843    (1.2%)  9,635,356     0.4%
Short-term
 borrowings     2,956,626    1,928,876    53.3%   2,049,833    44.2%
Long-term
 funding        1,911,797    2,034,160    (6.0%)  1,993,104    (4.1%)
Accrued expenses
 and other
 liabilities      136,600      143,588    (4.9%)    134,928     1.2%
              ------------ ------------         ------------
Total
 liabilities   14,682,296   13,899,467     5.6%  13,813,221     6.3%
Stockholders'
 Equity
 Preferred
  stock                 -            -                    -
 Common stock       1,105          734    50.5%         736    50.1%
 Surplus          585,274      575,975     1.6%     580,823     0.8%
 Retained
  earnings        824,909      724,356    13.9%     695,076    18.7%
 Accumulated
  other
  comprehensive
  income           49,265       52,089    (5.4%)     36,310    35.7%
 Deferred
  compensation     (1,981)      (1,981)    0.0%      (1,744)   13.6%
 Treasury
  stock, at
  cost             (5,107)      (2,746)   86.0%     (10,253)  (50.2%)
              ------------ ------------         ------------
  Total
   stockholders'
   equity       1,453,465    1,348,427     7.8%   1,300,948    11.7%
              ------------ ------------         ------------
  Total
   liabilities
   and
   stockholders'
   equity     $16,135,761  $15,247,894     5.8% $15,114,169     6.8%
              ============ ============         ============

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

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

                    For The Three               For The Nine
                    Months Ended,               Months Ended,
                    September 30,               September 30,
                 -------------------         -------------------
(in thousands, except                 %                         %
 per share amounts) 2004     2003  Change     2004     2003  Change
----------------------------------------------------------------------
Interest Income
Interest and
 fees on loans    $142,389 $145,246  (2.0%) $415,090 $441,527   (6.0%)
Interest and
 dividends on
 investment
 securities and
 deposits with
 other financial
 institutions
  Taxable           31,590   26,710  18.3%    93,389   79,430   17.6%
  Tax-exempt        10,255    9,825   4.4%    30,757   29,822    3.1%
Interest on federal
 funds sold and
 securities purchased
 under agreements
 to resell             241       38 534.2%       336      127  164.6%
                  -------- --------         -------- --------
  Total interest
   income          184,475  181,819   1.5%   539,572  550,906   (2.1%)
Interest Expense
Interest on
 deposits           27,191   30,327 (10.3%)   81,401   93,875  (13.3%)
Interest on
 short-term
 borrowings         10,262    6,757  51.9%    24,042   23,766    1.2%
Interest on
 long-term
 funding            13,806   15,759 (12.4%)   39,959   49,640  (19.5%)
                  -------- --------         -------- --------
  Total interest
   expense          51,259   52,843  (3.0%)  145,402  167,281  (13.1%)
                  -------- --------         -------- --------
Net Interest
 Income            133,216  128,976   3.3%   394,170  383,625    2.7%
Provision for
 loan losses           -     12,118 (100.0%)  11,065   37,210  (70.3%)
                  -------- --------         -------- --------
Net interest
 income after
 provision for
 loan losses       133,216  116,858  14.0%   383,105  346,415   10.6%
Noninterest Income
Trust service
 fees                7,773    7,001  11.0%    23,684   21,427   10.5%
Service charges
 on deposit
 accounts           13,672   13,338   2.5%   39,210    37,611    4.3%
Mortgage banking     6,593   21,671 (69.6%)  24,664    73,284  (66.3%)
Credit card and
 other nondeposit
 fees                6,253    5,435  15.1%    17,998   18,023   (0.1%)
Retail commissions  11,925    6,830  74.6%    34,444   17,540   96.4%
Bank owned life
 insurance income    3,580    3,532   1.4%    10,576   10,373    2.0%
Asset sale gains, net  309      871 (64.5%)      749      203  269.0%
Investment
 securities gains
 (losses), net          (6)       1 (700.0%)   1,356      702   93.2%
Other                3,034    3,245  (6.5%)    8,908   14,795  (39.8%)
                  -------- --------         -------- --------
  Total noninterest
   income           53,133   61,924 (14.2%)  161,589  193,958  (16.7%)
Noninterest
 Expense
Personnel
 expense           53,467    53,080   0.7%   159,355  153,649    3.7%
Occupancy           6,939     7,101  (2.3%)   21,275   21,367   (0.4%)
Equipment           3,022     3,178  (4.9%)    8,899    9,612   (7.4%)
Data processing     5,865     6,322  (7.2%)   17,666   17,542    0.7%
Business
 development and
 advertising        3,990     4,113  (3.0%)   10,704   11,029   (2.9%)
Stationery and
 supplies           1,214     1,651 (26.5%)    3,869    4,964  (22.1%)
Mortgage
 servicing rights
 expense            5,975     4,199  42.3%   10,379    28,818  (64.0%)
Other intangible
 amortization         935       871   7.3%     2,651    2,091   26.8%
Loan expense        1,152     1,806 (36.2%)    4,208    6,104  (31.1%)
Other              12,447    13,486  (7.7%)   39,275   39,372   (0.2%)
                  -------- --------         -------- --------
  Total noninterest
   expense          95,006   95,807  (0.8%)  278,281  294,548   (5.5%)
                  -------- --------         -------- --------
Income before
 income taxes       91,343   82,975  10.1%   266,413  245,825    8.4%
Income tax
 expense            27,977   24,589  13.8%    78,982   72,777    8.5%
                  -------- --------         -------- --------
Net Income         $63,366  $58,386   8.5%  $187,431 $173,048    8.3%
                  ======== ========         ======== ========

Earnings Per
 Share:
 Basic               $0.58    $0.53   9.4%     $1.70    $1.56    9.0%
 Diluted             $0.57    $0.52   9.6%     $1.68    $1.55    8.4%
Average Shares
 Outstanding:
 Basic             110,137  110,209  (0.1%)  110,182  110,837   (0.6%)
 Diluted           111,699  111,485   0.2%   111,614  111,894   (0.2%)

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

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

(in thousands, except  3Q04      2Q04      1Q04      4Q03      3Q03
 per share amounts)
----------------------------------------------------------------------
Interest Income
Interest and fees on
 loans               $142,389  $137,449  $135,252  $137,289  $145,246
Interest and
 dividends on
 investment
 securities
 and deposits in
 other financial
 institutions:
 Taxable               31,590    30,767    31,032    29,194    26,710
 Tax-exempt            10,255    10,267    10,235     9,939     9,825
Interest on federal
 funds sold and
 securities
 purchased under
 agreements to
 resell                   241        68        27        36        38
                     --------- --------- --------- --------- ---------
  Total interest
   income             184,475   178,551   176,546   176,458   181,819
Interest Expense
Interest on deposits   27,191    26,656    27,554    29,247    30,327
Interest on short-
 term borrowings       10,262     7,241     6,539     5,390     6,757
Interest on long-term
 funding               13,806    12,775    13,378    14,684    15,759
                     --------- --------- --------- --------- ---------
  Total interest
   expense             51,259    46,672    47,471    49,321    52,843
                     --------- --------- --------- --------- ---------
Net Interest Income   133,216   131,879   129,075   127,137   128,976
Provision for loan
 losses                     -     5,889     5,176     9,603    12,118
                     --------- --------- --------- --------- ---------
Net interest income
 after provision for
 loan losses          133,216   125,990   123,899   117,534   116,858
Noninterest Income
Trust service fees      7,773     8,043     7,868     8,150     7,001
Service charges on
 deposit accounts      13,672    13,141    12,397    12,735    13,338
Mortgage banking        6,593     9,045     9,026     9,753    21,671
Credit card and other
 nondeposit fees        6,253     6,074     5,671     5,646     5,435
Retail commissions     11,925    13,162     9,357     8,031     6,830
Bank owned life
 insurance income       3,580     3,641     3,355     3,417     3,532
Asset sale gains, net     309       218       222     1,366       871
Investment securities
 gains (losses), net       (6)     (569)    1,931         -         1
Other                   3,034     2,742     3,132     3,379     3,245
                     --------- --------- --------- --------- ---------
  Total noninterest
   income              53,133    55,497    52,959    52,477    61,924
Noninterest Expense
Personnel expense      53,467    53,612    52,276    54,391    53,080
Occupancy               6,939     6,864     7,472     6,710     7,101
Equipment               3,022     2,878     2,999     3,206     3,178
Data processing         5,865     6,128     5,673     5,731     6,322
Business development
 and advertising        3,990     4,057     2,657     4,165     4,113
Stationery and
 supplies               1,214     1,429     1,226     1,741     1,651
Mortgage servicing
 rights expense         5,975    (2,368)    6,772       735     4,199
Other intangible
 amortization             935       934       782       870       871
Loan expense            1,152     1,670     1,386     1,446     1,806
Other                  12,447    14,415    12,413    15,125    13,486
                     --------- --------- --------- --------- ---------
  Total noninterest
   expense             95,006    89,619    93,656    94,120    95,807
                     --------- --------- --------- --------- ---------
Income before income
 taxes                 91,343    91,868    83,202    75,891    82,975
Income tax expense     27,977    27,363    23,642    20,282    24,589
                     --------- --------- --------- --------- ---------
Net Income            $63,366   $64,505   $59,560   $55,609   $58,386
                     ========= ========= ========= ========= =========

Earnings Per Share:
 Basic                  $0.58     $0.59     $0.54     $0.51     $0.53
 Diluted                $0.57     $0.58     $0.53     $0.50     $0.52
Average Shares
 Outstanding:
 Basic                110,137   110,116   110,294   109,965   110,209
 Diluted              111,699   111,520   111,830   111,499   111,485

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

Selected Quarterly Information
Associated Banc-Corp

----------------------------------------------------------------------
(in thousands, except
 per share & full
 time equivalent
 employee data)       YTD 2004     YTD 2003 3rd Qtr 2004 2nd Qtr 2004
----------------------------------------------------------------------
Summary of Operations
Net interest
 income                394,170      383,625      133,216      131,879
Provision for loan
 losses                 11,065       37,210            -        5,889
Asset sale gains,
 net                       749          203          309          218
Investment securities
 gains (losses), net     1,356          702           (6)        (569)
Noninterest income
 (excluding securities
  & asset gains)       159,484      193,053       52,830       55,848
Noninterest
 expense               278,281      294,548       95,006       89,619
Income before
 income taxes          266,413      245,825       91,343       91,868
Income taxes            78,982       72,777       27,977       27,363
Net income             187,431      173,048       63,366       64,505
Taxable equivalent
 adjustment             19,186       18,673        6,395        6,387

----------------------------------------------------------------------
Per Common Share
 Data (1)
Net income:
  Basic                  $1.70        $1.56        $0.58        $0.59
  Diluted                 1.68         1.55         0.57         0.58
Dividends               0.7267       0.6600       0.2500       0.2500

Market Value:
  High                  $32.19       $25.93       $32.19       $30.13
  Low                    27.09        21.43        28.81        27.09
  Close                  32.07        25.26        32.07        29.63
Book value               13.18        11.84        13.18        12.53

----------------------------------------------------------------------
Performance Ratios
 (annualized)
Net interest
 margin                   3.79%        3.82%        3.76%        3.80%
Return on average
 assets                   1.62         1.54         1.60         1.67
Return on average
 equity                  18.00        17.82        17.76        18.87
Efficiency ratio
 (2)                     48.58        49.47        49.37        46.17
Effective tax rate       29.65        29.61        30.63        29.78
Dividend payout
 ratio (3)               42.72        42.31        43.10        42.37

----------------------------------------------------------------------
Average Balances
Assets             $15,495,898  $15,013,216  $15,730,451  $15,498,005
Earning assets      14,452,594   13,986,544   14,688,914   14,480,701
Interest-bearing
 liabilities        12,232,593   11,928,563   12,381,407   12,231,733
Loans               10,609,581   10,712,738   10,708,701   10,685,542
Deposits             9,636,138    9,171,353    9,621,557    9,701,945
Stockholders'
 equity              1,391,116    1,298,234    1,419,600    1,374,632
Stockholders'
 equity / assets          8.98%        8.65%        9.02%        8.87%

----------------------------------------------------------------------
At Period End
Assets                                       $16,135,761  $15,502,556
Loans                                         10,830,627   10,556,603
Allowance for loan
 losses                                          175,007      177,980
Goodwill                                         232,564      232,528
Mortgage servicing
 rights, net                                      45,555       48,735
Other intangible
 assets                                           24,308       25,242
Deposits                                       9,677,273    9,583,592
Stockholders'
 equity                                        1,453,465    1,378,894
Stockholders'
 equity / assets                                    9.01%        8.89%
Shares
 outstanding, end
 of period                                       110,281      110,048
Shares repurchased
 during period                                         -          205
Average per share
 cost of shares
 repurchased
 during period                                        $-       $27.93
Year-to-date
 shares
 repurchased
 during period                                       697          697
YTD average per
 share cost of
 shares
 repurchased
 during period                                    $28.91       $28.91

----------------------------------------------------------------------
Selected trend
 information
Average full time
 equivalent
 employees                                         3,979        4,010
Trust assets under
 management, at
 market value                                 $4,400,000   $4,300,000
Mortgage loans
 originated for
 sale                                            253,917      579,020
Portfolio serviced
 for others                                    6,011,000    6,010,000
Mortgage servicing
 rights, net /
 Portfolio
 serviced for
 others                                             0.76%        0.81%

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

Selected Quarterly Information
Associated Banc-Corp

----------------------------------------------------------------------
(in thousands, except per share
 & full time equivalent
 employee data)                1st Qtr 2004 4th Qtr 2003 3rd Qtr 2003
----------------------------------------------------------------------
Summary of Operations
Net interest income                 129,075      127,137      128,976
Provision for loan losses             5,176        9,603       12,118
Asset sale gains, net                   222        1,366          871
Investment securities gains
 (losses), net                        1,931            -            1
Noninterest income (excluding
 securities & asset gains)           50,806       51,111       61,052
Noninterest expense                  93,656       94,120       95,807
Income before income taxes           83,202       75,891       82,975
Income taxes                         23,642       20,282       24,589
Net income                           59,560       55,609       58,386
Taxable equivalent adjustment         6,404        6,230        6,165

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                               $0.54        $0.51        $0.53
  Diluted                              0.53         0.50         0.52
Dividends                            0.2267       0.2267       0.2267

Market Value:
  High                               $30.37       $28.75       $25.93
  Low                                 28.08        25.87        24.75
  Close                               29.86        28.53        25.26
Book value                            12.67        12.26        11.84

----------------------------------------------------------------------
Performance Ratios (annualized)
Net interest margin                    3.80%        3.81%        3.78%
Return on average assets               1.57         1.49         1.53
Return on average equity              17.37        16.85        17.75
Efficiency ratio (2)                  50.28        51.02        48.83
Effective tax rate                    28.42        26.73        29.63
Dividend payout ratio (3)             41.98        44.44        42.77

----------------------------------------------------------------------
Average Balances
Assets                          $15,261,277  $14,852,390  $15,152,676
Earning assets                   14,185,569   13,828,992   14,128,702
Interest-bearing liabilities     12,083,003   11,637,646   11,955,420
Loans                            10,433,411   10,354,726   10,813,769
Deposits                          9,585,074    9,679,789    9,485,000
Stockholders' equity              1,378,804    1,309,167    1,304,983
Stockholders' equity / assets          9.03%        8.81%        8.61%

----------------------------------------------------------------------
At Period End
Assets                          $15,510,868  $15,247,894  $15,114,169
Loans                            10,486,610   10,291,810   10,289,242
Allowance for loan losses           177,717      177,622      176,223
Goodwill                            224,388      224,388      224,388
Mortgage servicing rights, net       39,649       42,477       36,663
Other intangible assets              20,250       21,032       21,902
Deposits                          9,702,758    9,792,843    9,635,356
Stockholders' equity              1,395,293    1,348,427    1,300,948
Stockholders' equity / assets          9.00%        8.84%        8.61%
Shares outstanding, end of
 period                             110,168      109,966      109,840
Shares repurchased during
 period                                 492          212        1,090
Average per share cost of
 shares repurchased during
 period                              $29.32       $28.18       $24.97
Year-to-date shares repurchased
 during period                          492        3,091        2,880
YTD average per share cost of
 shares repurchased during
 period                              $29.32       $24.11       $23.81

----------------------------------------------------------------------
Selected trend information
Average full time equivalent
 employees                            4,024        4,098        4,173
Trust assets under management,
 at market value                 $4,300,000   $4,100,000   $3,800,000
Mortgage loans originated for
 sale                               359,791      524,118    1,422,747
Portfolio serviced for others     5,904,000    5,928,000    5,587,000
Mortgage servicing rights, net
 / Portfolio serviced for
 others                                0.67%        0.72%        0.66%

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

(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.

(3) Ratio is based upon basic earnings per share.

----------------------------------------------------------------------
Financial Summary and Comparison
Associated  Banc-Corp
                 Three months ended           Nine months ended
                     September 30,               September 30,
              --------------------------- ---------------------------
(in thousands)   2004    2003   % Change     2004    2003   % Change
------------- --------------------------- ---------------------------
Allowance for
 Loan Losses
Beginning
 balance      $177,980 $172,440      3.2% $177,622 $162,541      9.3%
Provision for
 loan losses         -   12,118  (100.0%)   11,065   37,210   (70.3%)
Charge offs     (3,770)  (9,340)  (59.6%)  (16,492) (26,631)  (38.1%)
Recoveries         797    1,005   (20.7%)    2,812    3,103    (9.4%)
              ------------------          ------------------
Net charge
 offs           (2,973)  (8,335)  (64.3%)  (13,680) (23,528)  (41.9%)
              ------------------          ------------------
Ending
 Balance      $175,007 $176,223    (0.7%) $175,007 $176,223    (0.7%)
              ==================          ==================

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

Credit Quality
                                   Sept 30,    June 30,  3Q04 vs 2Q04
                                     2004        2004       % Change
                                  ------------------------------------
Nonaccrual loans                      $81,124     $80,622         0.6%
Loans 90 or more days past due and
 still accruing                        10,309       5,207        98.0%
Restructured loans                         39          40       (2.5%)
                                  ------------------------
    Total nonperforming loans          91,472      85,869         6.5%
Other real estate owned                 4,526       6,613      (31.6%)
                                  ------------------------
    Total nonperforming assets         95,998      92,482         3.8%
                                  ========================
Provision for loan losses                   -       5,889     (100.0%)
Net charge offs                         2,973       5,626      (47.2%)

Allowance for loan losses / loans        1.62%       1.69%
Allowance for loan losses /
 nonperforming loans                   191.32      207.27
Nonperforming loans / total loans        0.84        0.81
Nonperforming assets / total
 assets                                  0.59        0.60
Net charge offs / average loans
 (annualized)                            0.11        0.21
Year-to-date net charge offs /
 average loans                           0.17        0.20

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

Credit Quality
                          Mar 31,     Dec 31,    Sept 30, 3Q04 vs 3Q03
                           2004        2003        2003     % Change
                      ------------------------------------------------
Nonaccrual loans          $88,313    $113,944    $114,067      (28.9%)
Loans 90 or more days
 past due and still
 accruing                   5,258       7,495      11,055       (6.7%)
Restructured loans             42          43          44      (11.4%)
                      ------------------------------------
    Total
     nonperforming
     loans                 93,613     121,482     125,166      (26.9%)
Other real estate
 owned                      7,199       5,457       6,380      (29.1%)
                      ------------------------------------
    Total
     nonperforming
     assets               100,812     126,939     131,546      (27.0%)
                      ====================================
Provision for loan
 losses                     5,176       9,603      12,118     (100.0%)
Net charge offs             5,081       8,204       8,335      (64.3%)

Allowance for loan
 losses / loans              1.69%       1.73%       1.71%
Allowance for loan
 losses /
 nonperforming loans       189.84      146.21      140.79
Nonperforming loans /
 total loans                 0.89        1.18        1.22
Nonperforming assets /
 total assets                0.65        0.83        0.87
Net charge offs /
 average loans
 (annualized)                0.20        0.31        0.31
Year-to-date net
 charge offs / average
 loans                       0.20        0.30        0.29

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

Period End Loan Composition
                                   Sept 30,    June 30,   3Q04 vs 2Q04
                                     2004        2004       % Change
                                  ------------------------------------
Commercial, financial &
 agricultural                      $2,479,764  $2,247,779        10.3%
Real estate - construction          1,152,990   1,118,284         3.1%
Commercial real estate              3,242,009   3,292,783       (1.5%)
Lease financing                        49,423      48,979         0.9%
                                  ------------------------
  Commercial                        6,924,186   6,707,825         3.2%
Residential mortgage                2,185,732   2,170,984         0.7%
Home equity                         1,047,902   1,011,489         3.6%
                                  ------------------------
  Residential real estate           3,233,634   3,182,473         1.6%
Consumer                              672,807     666,305         1.0%
                                  ------------------------
  Total loans                     $10,830,627 $10,556,603         2.6%
                                  ========================

Home equity, Consumer, & junior
 mortgage loans                    $1,963,242  $1,897,381         3.5%

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

Period End Loan
 Composition
                          Mar 31,     Dec 31,    Sept 30, 3Q04 vs 3Q03
                           2004        2003        2003     % Change
                      ------------------------------------------------
Commercial, financial
 & agricultural        $2,123,846  $2,116,463  $2,186,214        13.4%
Real estate -
 construction           1,094,597   1,077,731   1,035,674        11.3%
Commercial real estate  3,368,660   3,246,954   3,240,757         0.0%
Lease financing            45,998      38,968      37,193        32.9%
                      ------------------------------------
  Commercial            6,633,101   6,480,116   6,499,838         6.5%
Residential mortgage    2,166,035   2,145,227   2,166,187         0.9%
Home equity             1,007,572     968,744     912,142        14.9%
                      ------------------------------------
  Residential real
   estate               3,173,607   3,113,971   3,078,329         5.0%
Consumer                  679,902     697,723     711,075       (5.4%)
                      ------------------------------------
  Total loans         $10,486,610 $10,291,810 $10,289,242         5.3%
                      ====================================

Home equity, Consumer,
 & junior mortgage
 loans                 $1,884,444  $1,836,033  $1,796,102         9.3%

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

Period End Deposit Composition
                                   Sept 30,    June 30,   3Q04 vs 2Q04
                                      2004        2004      % Change
                                  ------------------------------------
Demand                             $1,867,905  $1,822,716         2.5%
Savings                               936,975     948,755       (1.2%)
Interest-bearing demand             2,334,072   2,355,287       (0.9%)
Money market                        1,516,423   1,477,513         2.6%
Brokered CDs                          186,326     263,435      (29.3%)
Other time deposits                 2,835,572   2,715,886         4.4%
                                  ------------------------
  Total deposits                   $9,677,273  $9,583,592         1.0%
                                  ========================



Period End Deposit
 Composition
                          Mar 31,    Dec 31,     Sept 30, 3Q04 vs 3Q03
                           2004        2003        2003     % Change
                      ------------------------------------------------
Demand                 $1,755,485  $1,814,446  $1,804,596         3.5%
Savings                   918,608     890,092     924,036         1.4%
Interest-bearing
 demand                 2,375,492   2,330,478   2,086,964        11.8%
Money market            1,542,875   1,573,678   1,559,769       (2.8%)
Brokered CDs              230,983     165,130     156,994        18.7%
Other time deposits     2,879,315   3,019,019   3,102,997       (8.6%)
                      ------------------------------------
  Total deposits       $9,702,758  $9,792,843  $9,635,356         0.4%
                      ====================================

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

Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                                  Nine months ended September 30, 2004
                                  ------------------------------------
                                     Average    Interest    Average
(in thousands)                       Balance    Income /    Yield /
                                                Expense       Rate
                                  ------------------------------------
Earning assets:
   Loans: (1) (2) (3)
      Commercial                   $6,668,508    $246,765        4.86%
      Residential real estate       3,265,419     133,842        5.46
      Consumer                        675,654      35,216        6.96
                                  ------------------------
         Total loans               10,609,581     415,823        5.18
   Investments and other            3,843,013     142,935        4.96
                                  ------------------------
Total earning assets               14,452,594     558,758        5.12
   Other assets, net                1,043,304
                                  ------------
Total assets                      $15,495,898
                                  ============

Interest-bearing liabilities:
   Savings deposits                  $927,876      $2,528        0.36%
   Interest-bearing demand
    deposits                        2,366,312      14,186        0.80
   Money market deposits            1,530,856       9,247        0.81
   Time deposits, excluding
    Brokered CDs                    2,844,147      53,227        2.50
                                  ------------------------
      Total interest-bearing
       deposits, excluding
       Brokered CDs                 7,669,191      79,188        1.38
   Brokered CDs                       216,371       2,213        1.37
                                  ------------------------
      Total interest-bearing
       deposits                     7,885,562      81,401        1.38
   Wholesale funding                4,347,031      64,001        1.94
                                  ------------------------
Total interest-bearing liabilities 12,232,593     145,402        1.58
   Noninterest-bearing demand       1,750,576
   Other liabilities                  121,613
   Stockholders' equity             1,391,116
                                  ------------
Total liabilities and
 stockholders' equity             $15,495,898
                                  ============


Net interest income and rate                  ------------
 spread (1)                                      $413,356        3.54%
                                              ============
Net interest margin (1)                                          3.79%
Taxable equivalent adjustment                     $19,186
                                              ============

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

Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                                  Nine months ended September 30, 2003
                                  ------------------------------------
                                     Average    Interest    Average
(in thousands)                       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        5.79
      Consumer                        709,692      38,660        7.28
                                  ------------------------
         Total loans               10,712,738     442,307        5.47
   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
                                              ============

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

Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                                   Three months ended September 30,
                                                  2004
                                  ------------------------------------
                                     Average    Interest    Average
                                     Balance    Income /    Yield /
                                                Expense       Rate
                                  ------------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                   $6,787,476     $85,971        4.96%
      Residential real estate       3,251,564      44,886        5.49
      Consumer                        669,661      11,775        6.99
                                  ------------------------
         Total loans               10,708,701     142,632        5.25
   Investments and other            3,980,213      48,238        4.85
                                  ------------------------
Total earning assets               14,688,914     190,870        5.14
   Other assets, net                1,041,537
                                  ------------
Total assets                      $15,730,451
                                  ============

Interest-bearing liabilities:
   Savings deposits                  $945,881        $844        0.35%
   Interest-bearing demand
    deposits                        2,338,492       4,615        0.79
   Money market deposits            1,516,812       3,294        0.86
   Time deposits, excluding
    Brokered CDs                    2,771,249      17,488        2.51
                                  ------------------------
      Total interest-bearing
       deposits, excluding
       Brokered CDs                 7,572,434      26,241        1.38
   Brokered CDs                       235,844         950        1.60
                                  ------------------------
      Total interest-bearing
       deposits                     7,808,278      27,191        1.39
   Wholesale funding                4,573,129      24,068        2.07
                                  ------------------------
Total interest-bearing liabilities 12,381,407      51,259        1.64
   Noninterest-bearing demand       1,813,279
   Other liabilities                  116,165
   Stockholders' equity             1,419,600
                                  ------------
Total liabilities and
 stockholders' equity             $15,730,451
                                  ============


Net interest income and rate                  ------------
 spread (1)                                      $139,611        3.50%
                                              ============
Net interest margin (1)                                          3.76%
Taxable equivalent adjustment                      $6,395
                                              ============

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

Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
                                   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.
    CONTACT: Associated Banc-Corp
             Joe Selner (Investors), 920-491-7120
             or
             Jon Drayna (Media), 920-491-7006

    SOURCE: Associated Banc-Corp
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