Press Release Details 5.23

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Associated Banc-Corp First Quarter EPS $.80

04/22/2004

GREEN BAY, Wis.--(BUSINESS WIRE)--April 22, 2004--Associated Banc-Corp (Nasdaq:ASBC) earned $0.80 per diluted share in the first quarter of 2004, compared to $0.77 and $0.75 per diluted share for the first and fourth quarters of 2003, respectively.

Return on average assets was 1.57 percent and return on average equity was 17.37 percent in 2004, compared to 1.58 percent and 18.36 percent, respectively, for the first quarter of 2003, on an annualized basis. Compared to fourth quarter 2003, return on average assets was up 8 basis points, and return on average equity increased 52 basis points. Book value per share rose to $19.00 at March 31, 2004.

"Our performance in the first quarter is evidence of significant progress toward implementing our strategic priorities," Associated President and CEO Paul Beideman said. "We are experiencing positive momentum in our wealth management and consumer businesses, as well as improved volume in our commercial banking business."

"As a result of our efforts over the last six months, asset quality has improved significantly. Additionally, our focus on expense management is creating positive operating leverage," Beideman said.

The comparison between the first quarter periods was impacted by anticipated changes in mortgage banking, as higher mortgage rates caused a slow-down in refinancing activity throughout the industry beginning in fourth quarter 2003. While mortgage banking fee revenue was down $15.5 million, the higher mortgage rates supported greater value of the servicing asset, lowering mortgage servicing rights expense by $4.8 million for a net $10.7 million impact between first quarter periods.

Also, the timing of a first quarter 2003 credit card merchant processing sale and services agreement (including a $3.4 million gain recorded as other income during first quarter 2003) and Associated's acquisition of CFG Insurance Services, Inc. on April 1, 2003, impacted the comparison of noninterest income and expense between first quarters.

Net interest income rose to $129.1 million in the first quarter, compared to $127.5 million and $127.1 million in the first and fourth quarters of 2003, respectively. The net interest margin was 3.80 percent, compared to 3.87 percent for first quarter 2003 and 3.81 percent for fourth quarter 2003.

Total loans at the end of the first quarter 2004 were $10.5 billion, up from $10.3 billion at the end of the first quarter of 2003, including 4 percent growth in commercial loans and 17 percent growth in home equity loans. Total loans increased 8 percent on an annualized basis since year-end 2003, led by 9 percent annualized growth in commercial loans and 16 percent annualized growth in home equity loans. Total deposits were $9.7 billion, up 7 percent from $9.1 billion a year earlier, and relatively unchanged from $9.8 billion at year-end 2003.

The company's credit quality showed improvement, benefiting first quarter 2004 results. Total nonperforming loans were $93.6 million, or 0.89 percent of total loans in the first quarter, down from $94.7 million, or 0.92 percent of loans a year ago, and $121.5 million, or 1.18 percent of loans at year-end 2003. More than half of the improvement in nonperforming loans since year end came from paydowns on two large problem loans, as management continues to work through problem credits. Also, first quarter net charge-offs of $5.1 million (0.20 percent of average loans annualized) were unchanged from first quarter 2003 and down from $8.2 million (0.31 percent annualized) in fourth quarter 2003. Accordingly, the provision for loan losses declined to $5.2 million for first quarter 2004, compared to $13.0 million and $9.6 million in the first and fourth quarters of 2003, respectively. The allowance for loan losses was 1.69 percent of total loans at March 31, 2004, compared to 1.66 percent a year ago and 1.73 percent at December 31, 2003.

Excluding mortgage fee revenue, as previously discussed, noninterest income was $43.9 million for first quarter 2004, up from $39.1 million for the first quarter of 2003, and $42.7 million for fourth quarter 2003. Compared to the first quarter of 2003, insurance and brokerage retail commissions increased $6.1 million (primarily due to CFG), trust revenue was up $1.2 million, and service charges on deposit accounts were up $0.6 million.

Excluding mortgage servicing rights expense, as previously discussed, noninterest expense was $86.9 million for first quarter, compared to $85.0 million for the comparable 2003 period, and down from $93.4 million for fourth quarter 2003. The $1.9 million increase from the same period last year was primarily a result of including CFG operating expenses, offset by lower merchant processing costs. Compared to the fourth quarter of 2003, the $6.5 million decline was primarily the result of a $2.1 million decline in personnel expense, and expense control on discretionary spending.

"Our strategic priorities to diversify revenue streams and manage risk are taking hold and overcoming the market-driven decline in mortgage banking," Beideman said.

"Additionally, we are excited about our previously announced April 1 acquisition of Jabas Group, Inc. Jabas is one of Wisconsin's leading employee benefit firms, and will complement our growing insurance revenues," he said.

"Given our improving sales effectiveness, our expense discipline, and improving asset quality trends, we are optimistic we can achieve or exceed the consensus of analysts' estimates for our 2004 earnings," Beideman said.

The company will host a conference call for investors and analysts at 3 p.m. today. The toll-free dial-in number is 877-654-5513. Participants should ask the operator for the Associated Banc-Corp earnings call, number 696-0660. An archived recording of the call will be available for one week.

Associated Banc-Corp has 218 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-CorpMarch 31, December 31,   %       March 31,    %
(in thousands)       2004        2003     Change       2003    Change
----------------------------------------------------------------------
Assets
Cash and due
 from banks        $323,686     $389,140  (16.8%)    $401,012  (19.3%)
Interest-
 bearing deposits
 in other
 financial
 institutions        17,057        7,434   129.4%      13,640    25.1%
Federal funds
 sold and securities
 purchased under
 agreements to
 resell               7,000        3,290   112.8%      27,815  (74.8%)
Securities
 available for
 sale, at fair
 value            3,883,470    3,773,784     2.9%   3,379,000    14.9%
Loans held for
 sale               120,699      104,336    15.7%     374,053  (67.7%)
Loans            10,486,610   10,291,810     1.9%  10,275,469     2.1%
Allowance for
 loan losses       (177,717)    (177,622)    0.1%    (170,391)    4.3%
                ------------ ------------         ------------
  Loans, net     10,308,893   10,114,188     1.9%  10,105,078     2.0%
Premises and
 equipment          130,028      131,315   (1.0%)     132,234   (1.7%)
Goodwill            224,388      224,388     0.0%     212,112     5.8%
Intangible
 assets              59,899       63,509   (5.7%)      38,251    56.6%
Other assets        435,748      436,510   (0.2%)     405,971     7.3%
                ------------ ------------         ------------
  Total assets  $15,510,868  $15,247,894     1.7% $15,089,166     2.8%
                ============ ============         ============

Liabilities and
 Stockholders'Equity
Noninterest-
 bearing
 deposits        $1,755,485   $1,814,446   (3.2%)  $1,692,979     3.7%
Interest-
 bearing
 deposits,
 excluding
 Brokered CDs     7,716,290    7,813,267   (1.2%)   7,158,585     7.8%
Brokered CDs        230,983      165,130    39.9%     208,670    10.7%
                ------------ ------------         ------------
  Total deposits  9,702,758    9,792,843   (0.9%)   9,060,234     7.1%
Short-term
 borrowings       2,516,270    1,928,876    30.5%   2,422,631     3.9%
Long-term
 funding          1,749,418    2,034,160  (14.0%)   2,142,978  (18.4%)
Accrued expenses
 and other
 liabilities        147,129      143,588     2.5%     177,457  (17.1%)
                ------------ ------------         ------------
  Total
   liabilities   14,115,575   13,899,467     1.6%  13,803,300     2.3%
Stockholders'
Equity
 Preferred
  stock                   -            -                    -
 Common stock           736          734     0.3%         748   (1.6%)
 Surplus            582,928      575,975     1.2%     621,616   (6.2%)
 Retained
  earnings          755,627      724,356     4.3%     637,781    18.5%
 Accumulated
  other
  comprehensive
  income             66,526       52,089    27.7%      56,302    18.2%
 Deferred
  compensation       (1,981)      (1,981)    0.0%           -     N/M
 Treasury
  stock,
  at cost            (8,543)      (2,746)  211.1%     (30,581) (72.1%)
                ------------ ------------         ------------
  Total
   stockholders'
   equity         1,395,293    1,348,427     3.5%   1,285,866     8.5%
                ------------ ------------         ------------
  Total
   liabilities
   and
   stockholders'
   equity       $15,510,868  $15,247,894     1.7% $15,089,166     2.8%
                ============ ============         ============

N/M - Not
 meaningful.


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

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

                                     For The Three Months Ended,
                                               March 31,
                                         -------------------
(in thousands, except per share amounts)    2004      2003   % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans               $135,252  $148,496     (8.9%)
Interest and dividends on investment
 securities and deposits with other
 financial institutions
  Taxable                                  31,032    26,797      15.8%
  Tax-exempt                               10,235    10,055       1.8%
Interest on federal funds sold and
 securities purchased under agreements
 to resell                                     27        35    (22.9%)
                                         --------- ---------
    Total interest income                 176,546   185,383     (4.8%)
Interest Expense
Interest on deposits                       27,554    31,990    (13.9%)
Interest on short-term borrowings           6,539     8,567    (23.7%)
Interest on long-term funding              13,378    17,372    (23.0%)
                                         --------- ---------
    Total interest expense                 47,471    57,929    (18.1%)
                                         --------- ---------
Net Interest Income                       129,075   127,454       1.3%
Provision for loan losses                   5,176    12,960    (60.1%)
                                         --------- ---------
Net interest income after provision for
 loan losses                              123,899   114,494       8.2%
Noninterest Income
Trust service fees                          7,868     6,630      18.7%
Service charges on deposit accounts        12,397    11,811       5.0%
Mortgage banking                            9,026    24,500    (63.2%)
Credit card and other nondeposit fees       5,671     7,396    (23.3%)
Retail commissions                          9,357     3,303     183.3%
Bank owned life insurance income            3,355     3,391     (1.1%)
Asset sale gains, net                         222       122      82.0%
Investment securities
 gains (losses), net                        1,931      (326)      N/M
Other                                       3,132     6,779    (53.8%)
                                         --------- ---------
    Total noninterest income               52,959    63,606    (16.7%)
Noninterest Expense
Personnel expense                          52,276    48,836       7.0%
Occupancy                                   7,472     7,115       5.0%
Equipment                                   2,999     3,244     (7.6%)
Data processing                             5,673     5,618       1.0%
Business development and advertising        2,657     3,363    (21.0%)
Stationery and supplies                     1,226     1,679    (27.0%)
Mortgage servicing rights expense           6,772    11,598    (41.6%)
Other intangible amortization                 782       350     123.4%
Loan expense                                1,386     3,348    (58.6%)
Other                                      12,413    11,403       8.9%
                                         --------- ---------
    Total noninterest expense              93,656    96,554     (3.0%)
                                         --------- ---------
Income before income taxes                 83,202    81,546       2.0%
Income tax expense                         23,642    23,553       0.4%
                                         --------- ---------
Net Income                                $59,560   $57,993       2.7%
                                         ========= =========

Earnings Per Share:
  Basic                                   $  0.81   $  0.78       3.8%
  Diluted                                 $  0.80   $  0.77       3.9%
Average Shares Outstanding:
  Basic                                    73,529    74,252     (1.0%)
  Diluted                                  74,553    74,974     (0.6%)

N/M - Not meaningful.


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

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

(in thousands, except
per share amounts)    1Q04      4Q03      3Q03      2Q03      1Q03
----------------------------------------------------------------------
Interest Income
Interest and fees on
 loans               $135,252  $137,289  $145,246  $147,785  $148,496
Interest and
 dividends on
 investment
 securities
 and deposits in
 other financial
 institutions:
  Taxable              31,032    29,194    26,710    25,923    26,797
  Tax-exempt           10,235     9,939     9,825     9,942    10,055
Interest on federal
 funds sold and
 securities
 purchased under
 agreements to
 resell                    27        36        38        54        35
                     --------- --------- --------- --------- ---------
  Total interest
     income           176,546   176,458   181,819   183,704   185,383
Interest Expense
Interest on deposits   27,554    29,247    30,327    31,558    31,990
Interest on short-term
 borrowings             6,539     5,390     6,757     8,442     8,567
Interest on long-term
 funding               13,378    14,684    15,759    16,509    17,372
                     --------- --------- --------- --------- ---------
    Total interest
     expense           47,471    49,321    52,843    56,509    57,929
                     --------- --------- --------- --------- ---------
Net Interest Income   129,075   127,137   128,976   127,195   127,454
Provision for loan
 losses                 5,176     9,603    12,118    12,132    12,960
                     --------- --------- --------- --------- ---------
Net interest income
 after provision for
 loan losses          123,899   117,534   116,858   115,063   114,494
Noninterest Income
Trust service fees      7,868     8,150     7,001     7,796     6,630
Service charges on
 deposit accounts      12,397    12,735    13,338    12,462    11,811
Mortgage banking        9,026     9,753    21,671    27,113    24,500
Credit card and
 other nondeposit
 fees                   5,671     5,646     5,435     5,192     7,396
Retail commissions      9,357     8,031     6,830     7,407     3,303
Bank owned life
 insurance income       3,355     3,417     3,532     3,450     3,391
Asset sale gains
 (losses), net            222     1,366       871      (790)      122
Investment
 securities gains
 (losses), net          1,931         -         1     1,027      (326)
Other                   3,132     3,379     3,245     4,771     6,779
                     --------- --------- --------- --------- ---------
    Total noninterest
     income            52,959    52,477    61,924    68,428    63,606
Noninterest Expense
Personnel expense      52,276    54,391    53,080    51,733    48,836
Occupancy               7,472     6,710     7,101     7,151     7,115
Equipment               2,999     3,206     3,178     3,190     3,244
Data processing         5,673     5,731     6,322     5,602     5,618
Business development
 and advertising        2,657     4,165     4,113     3,553     3,363
Stationery and
 supplies               1,226     1,741     1,651     1,634     1,679
Mortgage servicing
 rights expense         6,772       735     4,199    13,021    11,598
Other intangible
 amortization             782       870       871       870       350
Loan expense            1,386     1,446     1,806       950     3,348
Other                  12,413    15,125    13,486    14,483    11,403
                     --------- --------- --------- --------- ---------
    Total noninterest
     expense           93,656    94,120    95,807   102,187    96,554
                     --------- --------- --------- --------- ---------
Income before income
 taxes                 83,202    75,891    82,975    81,304    81,546
Income tax expense     23,642    20,282    24,589    24,635    23,553
                     --------- --------- --------- --------- ---------
Net Income            $59,560   $55,609   $58,386   $56,669   $57,993
                     ========= ========= ========= ========= =========

Earnings Per Share:
  Basic               $  0.81   $  0.76   $  0.79   $  0.77   $  0.78
  Diluted             $  0.80   $  0.75   $  0.79   $  0.76   $  0.77
Average Shares
 Outstanding:
  Basic                73,529    73,310    73,473    73,959    74,252
  Diluted              74,553    74,332    74,323    74,683    74,974

----------------------------------------------------------------------
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 (losses), 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                            $  0.81      $  0.76      $  0.79
  Diluted                             0.80         0.75         0.79
Dividends                             0.34         0.34         0.34

Market Value:
  High                            $  45.55     $  43.13     $  38.90
  Low                                42.12        38.81        37.12
  Close                              44.79        42.80        37.89
Book value                           19.00        18.39        17.77

----------------------------------------------------------------------
Performance Ratios
 (annualized)
Net interest margin (FTE)             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        44.74        43.04

----------------------------------------------------------------------
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                             73,445       73,311       73,227
Shares repurchased during
 period                                328          141          727
Average per share cost of
 shares repurchased during
 period                             $43.98       $42.27       $37.46

----------------------------------------------------------------------
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%

----------------------------------------------------------------------
(in thousands, except per share
& full time equivalent employee data)        2nd Qtr 2003 1st Qtr 2003
----------------------------------------------------------------------
Summary of Operations
Net interest income                             127,195       127,454
Provision for loan losses                        12,132        12,960
Asset sale gains (losses), net                     (790)          122
Investment securities gains
 (losses), net                                    1,027          (326)
Noninterest income (excluding
 securities & asset gains)                       68,191        63,810
Noninterest expense                             102,187        96,554
Income before income taxes                       81,304        81,546
Income taxes                                     24,635        23,553
Net income                                       56,669        57,993
Taxable equivalent adjustment                     6,231         6,277

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                                         $  0.77       $  0.78
  Diluted                                          0.76          0.77
Dividends                                          0.34          0.31

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

----------------------------------------------------------------------
Performance Ratios
 (annualized)
Net interest margin (FTE)                          3.79%         3.87%
Return on average assets                           1.51          1.58
Return on average equity                          17.37         18.36
Efficiency ratio (2)                              50.68         48.88
Effective tax rate                                30.30         28.88
Dividend payout ratio (3)                         44.16         39.74

----------------------------------------------------------------------
Average Balances
Assets                                      $15,016,497   $14,867,339
Earning assets                               13,991,615    13,836,102
Interest-bearing liabilities                 11,941,877    11,886,642
Loans                                        10,743,430    10,578,430
Deposits                                      9,121,204     8,901,441
Stockholders' equity                          1,308,505     1,280,950
Stockholders' equity / assets                      8.71%         8.62%

----------------------------------------------------------------------
At Period End
Assets                                      $15,218,816   $15,089,166
Loans                                        10,387,364    10,275,469
Allowance for loan losses                       172,440       170,391
Goodwill                                        224,388       212,112
Mortgage servicing rights, net                   27,784        29,359
Other intangible assets                          22,772         8,892
Deposits                                      9,453,460     9,060,234
Stockholders' equity                          1,318,246     1,285,866
Stockholders' equity / assets                      8.66%         8.52%
Shares outstanding, end of
 period                                          73,736        73,870
Shares repurchased during
 period                                             476           717
Average per share cost of
 shares repurchased during
 period                                        $  36.12      $  33.69

----------------------------------------------------------------------
Selected trend information
Average full time equivalent
 employees                                        4,145         4,075
Trust assets under management,
 at market value                             $3,800,000    $3,400,000
Mortgage loans originated for
 sale                                         1,229,022     1,097,520
Portfolio serviced for others                 5,471,000     5,449,000
Mortgage servicing rights,
 net / Portfolio
 serviced for others                               0.51%         0.54%


(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
                                                   March 31,
                                         -----------------------------
(in thousands)                               2004      2003  % Change
---------------------------------------- --------- --------- ---------
Allowance for Loan Losses
Beginning balance                        $177,622  $162,541       9.3%
Provision for loan losses                   5,176    12,960    (60.1%)
Charge offs                                (6,062)   (5,754)      5.4%
Recoveries                                    981       644      52.3%
                                         --------- ---------
Net charge offs                            (5,081)   (5,110)    (0.6%)
                                         --------- ---------
Ending Balance                           $177,717  $170,391       4.3%
                                         ========= =========

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

Credit Quality
                                                                1Q04
                                                                 vs
                                         Mar 31,   Dec 31,      4Q03
                                           2004      2003    % Change
                                         --------- --------- ---------
Nonaccrual loans                          $88,313  $113,944   (22.5%)
Loans 90 or more days past due
 and still accruing                         5,258     7,495   (29.8%)
Restructured loans                             42        43    (2.3%)
                                         --------- ---------
    Total nonperforming loans              93,613   121,482   (22.9%)
Other real estate owned                     7,199     5,457     31.9%
                                         --------- ---------
    Total nonperforming assets            100,812   126,939   (20.6%)
                                         ========= =========
Provision for loan losses                   5,176     9,603   (46.1%)
Net charge offs                             5,081     8,204   (38.1%)

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


                                                                1Q04
                                                                 vs
                               Sept 30,  June 30,  Mar 31,      1Q03
                                 2003      2003      2003    % Change
                               --------- --------- --------- ---------
Nonaccrual loans               $114,067  $110,820   $90,384     (2.3%)
Loans 90 or more days past due
 and still accruing              11,055     6,311     3,425      53.5%
Restructured loans                   44        46       844    (95.0%)
                               --------- --------- ---------
    Total nonperforming loans   125,166   117,177    94,653     (1.1%)
Other real estate owned           6,380    14,707    12,949    (44.4%)
                               --------- --------- ---------
    Total nonperforming assets  131,546   131,884   107,602     (6.3%)
                               ========= ========= =========
Provision for loan losses        12,118    12,132    12,960    (60.1%)
Net charge offs                   8,335    10,083     5,110     (0.6%)

Allowance for loan losses /
 loans                             1.71%     1.66%     1.66%
Allowance for loan losses /
 nonperforming loans             140.79    147.16    180.02
Nonperforming loans / total
 loans                             1.22      1.13      0.92
Nonperforming assets / total
 assets                            0.87      0.87      0.71
Net charge offs / average
 loans (annualized)                0.31      0.38      0.20
Year-to-date net charge offs /
 average loans                     0.29      0.29      0.20


----------------------------------------------------------------------
                                                                1Q04
Period End Loan                                                  vs
 Composition                                                    4Q03
                                   Mar 31, 2004Dec 31, 2003 % Change
                                   ------------ ------------ ---------
Commercial, financial
 & agricultural                     $2,123,846   $2,116,463       0.3%
Real estate -
 construction                        1,094,597    1,077,731       1.6%
Commercial real estate               3,368,660    3,246,954       3.7%
Lease financing                         45,998       38,968      18.0%
                                   ------------ ------------
  Commercial                         6,633,101    6,480,116       2.4%
Residential mortgage                 2,166,035    2,145,227       1.0%
Home equity                          1,007,572      968,744       4.0%
                                   ------------ ------------
  Residential real
   estate                            3,173,607    3,113,971       1.9%
Consumer                               679,902      697,723     (2.6%)
                                   ------------ ------------
  Total loans                      $10,486,610  $10,291,810       1.9%
                                   ============ ============



                                                                1Q04
                                                                 vs
                       Sept 30,     June 30,    Mar 31, 2003    1Q03
                          2003         2003                  % Change
                      ------------ ------------ ------------ ---------
Commercial, financial
 & agricultural        $2,186,214   $2,312,143   $2,238,657     (5.1%)
Real estate -
 construction           1,035,674      975,415      912,510      20.0%
Commercial real
 estate                 3,240,757    3,255,918    3,188,907       5.6%
Lease financing            37,193       38,666       38,712      18.8%
                      ------------ ------------ ------------
  Commercial            6,499,838    6,582,142    6,378,786       4.0%
Residential mortgage    2,166,187    2,202,690    2,325,032     (6.8%)
Home equity               912,142      895,952      858,928      17.3%
                      ------------ ------------ ------------
  Residential real
   estate               3,078,329    3,098,642    3,183,960     (0.3%)
Consumer                  711,075      706,580      712,723     (4.6%)
                      ------------ ------------ ------------
  Total loans         $10,289,242  $10,387,364  $10,275,469       2.1%
                      ============ ============ ============

----------------------------------------------------------------------
                                                                1Q04
Period End Deposit                                               vs
 Composition                                                    4Q03
                                  Mar 31, 2004Dec 31, 2003 % Change
                                  ------------- ------------ ---------
Demand                              $1,755,485   $1,814,446     (3.2%)
Savings                                918,608      890,092      3.2%
Interest-bearing
 demand                              2,375,492    2,330,478      1.9%
Money market                         1,542,875    1,573,678     (2.0%)
Brokered CDs                           230,983      165,130     39.9%
Other time deposits                  2,879,315    3,019,019     (4.6%)
                                  ------------- ------------
  Total deposits                    $9,702,758   $9,792,843     (0.9%)
                                  ============= ============



Period End Deposit                                              1Q04
Composition                                                      vs
                       Sept 30,      June 30,      Mar 31,      1Q03
                         2003          2003         2003     % Change
                      ----------- ------------- ------------ ---------
Demand                $1,804,596    $1,833,703   $1,692,979      3.7%
Savings                  924,036       942,027      935,740     (1.8%)
Interest-bearing
 demand                2,086,964     1,797,065    1,540,757     54.2%
Money market           1,559,769     1,598,317    1,658,735     (7.0%)
Brokered CDs             156,994       163,857      208,670     10.7%
Other time deposits    3,102,997     3,118,491    3,023,353     (4.8%)
                      ----------- ------------- ------------
  Total deposits      $9,635,356    $9,453,460   $9,060,234      7.1%
                      =========== ============= ============

----------------------------------------------------------------------
Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp                   Three months ended March 31,
                                                    2004
                                       ------------------------------
                                          Average   Interest  Average
(in thousands)                            Balance    Income/   Yield/
                                                     Expense    Rate
                                       ------------ --------- --------

Earning assets:
 Loans: (1) (2) (3)
   Commercial                         $  6,532,215 $  79,787    4.83%
   Residential real estate               3,210,793    43,860    5.47
   Consumer                                690,403    11,868    6.91
                                       ------------ ---------
      Total loans                       10,433,411   135,515    5.17
 Investments and other                   3,752,158    47,435    5.06
                                       ------------ ---------
Total earning assets                    14,185,569   182,950    5.14
 Other assets, net                       1,075,708
                                       ------------
Total assets                           $15,261,277
                                       ============

Interest-bearing liabilities:
 Savings deposits                       $  898,526   $   841    0.38%
 Interest-bearing demand deposits        2,364,013     4,700    0.80
 Money market deposits                   1,577,010     3,163    0.81
 Time deposits, excluding Brokered CDs   2,937,071    18,412    2.52
                                       ------------ ---------
   Total interest-bearing deposits,
    excluding Brokered CDs               7,776,620    27,116    1.40
 Brokered CDs                              144,345       438    1.22
                                       ------------ ---------
   Total interest-bearing deposits       7,920,965    27,554    1.40
 Wholesale funding                       4,162,038    19,917    1.90
                                       ------------ ---------
Total interest-bearing liabilities      12,083,003    47,471    1.57
 Noninterest-bearing demand              1,664,109
 Other liabilities                         135,361
 Stockholders' equity                    1,378,804
                                       ------------
Total liabilities and stockholders'
 equity                                $15,261,277
                                       ============
                                                    ---------
Net interest income and rate spread(1)              $135,479    3.57%
                                                    =========
Net interest margin (1)                                         3.80%
Taxable equivalent adjustment                       $  6,404
                                                    =========



                                        Three months ended March 31,
                                                     2003
                                       -------------------------------
                                          Average   Interest  Average
(in thousands)                            Balance    Income /  Yield /
                                                      Expense    Rate
                                       ------------ --------- --------

Earning assets:
 Loans: (1) (2) (3)
    Commercial                        $  6,326,737 $  82,855     5.24%
    Residential real estate              3,537,998    52,823     6.02
    Consumer                               713,695    13,062     7.42
                                       ------------ ---------
       Total loans                      10,578,430   148,740     5.65
 Investments and other                   3,257,672    42,920     5.27
                                       ------------ ---------
Total earning assets                    13,836,102   191,660     5.56
 Other assets, net                       1,031,237
                                       ------------
Total assets                           $14,867,339
                                       ============

Interest-bearing liabilities:
 Savings deposits                       $  909,581  $  1,453     0.65%
 Interest-bearing demand deposits        1,486,311     3,113     0.85
 Money market deposits                   1,704,621     4,265     1.01
 Time deposits, excluding Brokered CDs   3,012,579    22,065     2.97
                                       ------------ ---------
    Total interest-bearing deposits,
     excluding Brokered CDs              7,113,092    30,896     1.76
 Brokered CDs                              232,540     1,094     1.91
                                       ------------ ---------
    Total interest-bearing deposits      7,345,632    31,990     1.77
 Wholesale funding                       4,541,010    25,939     2.28
                                       ------------ ---------
Total interest-bearing liabilities      11,886,642    57,929     1.96
 Noninterest-bearing demand              1,555,809
 Other liabilities                         143,938
 Stockholders' equity                    1,280,950
                                       ------------
Total liabilities and stockholders'
 equity                                $14,867,339
                                       ============
                                                    ---------
Net interest income and rate spread(1)              $133,731     3.60%
                                                    =========
Net interest margin (1)                                          3.87%
Taxable equivalent adjustment                         $6,277
                                                    =========

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

(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
             Media:
             Jon Drayna, 920-491-7006

    SOURCE: Associated Banc-Corp
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