Press Release Details 5.23

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Associated Earns 58 Cents Per Diluted Share in 3rd Quarter of 2006

10/19/2006

GREEN BAY, Wis.--(BUSINESS WIRE)--

Associated Banc-Corp (Nasdaq:ASBC):

    --  Net income $76.9 million

    --  Net interest margin stable at 3.63%, up 7 bp over 3rd quarter
        of 2005

    --  Net charge offs at 10 basis points of average loans

    --  Wholesale funding reduced by $2.4 billion since Sept. 2005;
        strategy fully executed

    --  Accelerated stock buyback executed in 3rd quarter; another
        anticipated for 4th quarter

Associated Banc-Corp (Nasdaq:ASBC) earned $76.9 million, or $.58 per diluted share, for the third quarter of 2006, compared to net income of $81.0 million, or $.63 per diluted share, for the third quarter of 2005.

For the nine months ended Sept. 30, 2006, net income was $242.1 million, up 4 percent over $232.5 million for the comparable period in 2005. Earnings per diluted share were $1.81 and $1.79 for the first nine months of 2006 and 2005, respectively.

For the third quarter of 2006, return on average assets (ROA) was 1.46 percent, compared to 1.56 percent for the third quarter of last year. Return on average equity (ROE) was 13.36 percent for the third quarter, versus 15.85 percent for the comparable quarter last year. For the first nine months of 2006, ROA was 1.52 percent and ROE was 14.12 percent, compared to ROA of 1.51 percent and ROE of 15.33 percent last year. Book value per share rose to $17.44 as of Sept. 30, 2006, up 8 percent compared to a year earlier.

Return on average tangible equity (which is a non-GAAP measure that excludes average goodwill and other intangible assets from average equity) was 23.64 percent for the first nine months of 2006, versus 23.78 percent for the comparable period of 2005.

"While operating in a challenging banking environment, we are focused on margin improvement, deposit growth, sustained credit quality and prudent expense management. We have undertaken several important initiatives to manage risk and improve the contribution of our commercial banking business," Associated President and CEO Paul S. Beideman said.

Since Sept. 30, 2005, and after adjusting for a fourth quarter 2005 acquisition, wholesale funding has been reduced by $2.4 billion, through the use of investment cash flows and improved deposit flows. This initiative reduced the ratio of wholesale funding to total funding from 34 percent at Sept. 30, 2005, to 23 percent at Sept. 30, 2006.

Associated's net interest margin benefited from both the reduction in higher-costing wholesale funding and the increased percentage of loans to earning assets. The net interest margin for the third quarter of 2006 was 3.63 percent compared to 3.56 percent for the third quarter of 2005.

Between the third quarter periods, average loans grew $1.2 billion to $15.4 billion for third quarter 2006 (with $1.0 billion added from the State Financial acquisition in fourth quarter 2005), and average investments declined $1.2 billion in support of the wholesale funding reduction strategy, leaving average earning assets unchanged at $19.0 billion. Average total deposits increased $1.8 billion (with $1.0 billion added from the State Financial acquisition).

As of Sept. 30, 2006, the allowance for loan losses represented 1.33 percent of total loans and covered 158 percent of nonperforming loans. Nonperforming loans increased to $129 million, representing 0.84 percent of total loans, compared to $111 million (or 0.78 percent) at Sept. 30, 2005. The provision for loan losses, approximating net charge offs for each quarterly period, was $3.8 million and $3.3 million, respectively, for the comparable third quarter periods of 2006 and 2005. On a year-to-date basis, the provision for loan losses was $12.0 million for 2006, versus $9.3 million for 2005, and net charge offs represented 0.10 percent of average loans for 2006, versus 0.09 percent for the comparable nine-month period of 2005.

Core fee-based revenues including trust service fees, service charges on deposits, card-based and other non-deposit fees, and retail commissions totaled $57.6 million for the third quarter of 2006, up 7 percent over $53.9 million for the comparable quarter of 2005. On a year-to-date basis, core-fee based revenues were $172.5 million, up 8 percent over $160.1 million for the nine month periods of 2006 and 2005, respectively.

Net mortgage banking income was $2.8 million (including $0.5 million of valuation expense on the mortgage servicing asset) for the third quarter of 2006, down from $12.0 million (including a $4.5 million valuation recovery) in the third quarter of last year. On a year-to-date basis, net mortgage banking income was down $11.2 million (46 percent), as this industry continues to experience a slowdown.

All other noninterest income sources combined totaled $12.6 million for the third quarter of 2006, an increase of $1.5 million (13 percent) over the comparable third quarter of 2005, particularly due to income on bank owned life insurance. All other noninterest income sources totaled $35.4 million for the first nine months of 2006, versus $25.8 million last year, with other noninterest income for 2005 including a $6.7 million net loss on derivatives no longer accounted for as hedges.

Noninterest expense grew 5 percent between both the three-month and nine-month periods ending Sept. 30, 2006, and 2005, reflecting the larger operating base of the company attributable to the State Financial acquisition during the fourth quarter of 2005. While up in absolute terms, noninterest expenses remain controlled, with the efficiency ratio at 50.19 percent and 50.33 percent respectively, for the three and nine months ending Sept. 30, 2006.

The effective tax rate for the nine month period of 2006 was 28.92 percent, versus 32.10 percent for the comparable period of 2005. The year-to-date decline was primarily due to the first quarter 2006 resolution of certain multi-jurisdictional tax issues, as well as changes in exposure of uncertain tax positions in the second quarter of 2006, both of which resulted in the reduction of tax liabilities and income tax expense.

During the third quarter of 2006, Associated repurchased 2 million shares of its common stock at an average price of $31.43 per share for a total cost of approximately $63 million, leaving approximately 3.3 million shares remaining available for repurchase under its outstanding Board of Directors authorization.

"We anticipate buying back additional common stock in the fourth quarter similar in size to our previous actions, as we weigh market opportunities, capital levels, growth prospects and other investment opportunities," Beideman said.

Associated will host a conference call for investors and analysts at 3 p.m. CDT today. The toll-free dial-in number for the live call is 888-694-4769. The number for international callers is 973-582-2757. Participants should ask the operator for the Associated Banc-Corp third quarter 2006 earnings call, or for call ID number 7980287. A replay of the call will be available from 6 p.m. CDT today through October 26 by calling 877-519-4471 (toll-free) domestically or 973-341-3080 internationally. The call ID number, 7980287, is required to access the replay.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $21 billion. Associated has more than 320 banking offices serving more than 180 communities in Wisconsin, Illinois, and Minnesota. The company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.associatedbank.com.

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

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



Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
                                   September 30, December 31
(in thousands)                         2006         2005     % Change
----------------------------------------------------------------------
Assets
Cash and due from banks                $367,406     $460,230  (20.2%)
Interest-bearing deposits in other
 financial institutions                  27,627       14,254    93.8%
Federal funds sold and securities
 purchased under agreements to
 resell                                  34,752       17,811    95.1%
Investment securities available for
 sale, at fair value                  3,436,774    4,711,605  (27.1%)
Loans held for sale                      87,330       57,710    51.3%
Loans                                15,284,608   15,206,464     0.5%
Allowance for loan losses              (203,442)    (203,404)    0.0%
                                   ------------- ------------
    Loans, net                       15,081,166   15,003,060     0.5%
Premises and equipment                  196,201      206,153   (4.8%)
Goodwill                                871,629      877,680   (0.7%)
Other intangible assets, net            112,544      120,358   (6.5%)
Other assets                            711,094      631,221    12.7%
                                   ------------- ------------
    Total assets                    $20,926,523  $22,100,082   (5.3%)
                                   ============= ============

Liabilities and Stockholders'
 Equity
Noninterest-bearing deposits         $2,534,686   $2,504,926     1.2%
Interest-bearing deposits,
 excluding Brokered CDs              11,043,222   10,538,856     4.8%
Brokered CDs                            630,637      529,307    19.1%
                                   ------------- ------------
    Total deposits                   14,208,545   13,573,089     4.7%
Short-term borrowings                 2,004,982    2,666,307  (24.8%)
Long-term funding                     2,272,654    3,348,476  (32.1%)
Accrued expenses and other
 liabilities                            169,962      187,232   (9.2%)
                                   ------------- ------------
    Total liabilities                18,656,143   19,775,104   (5.7%)
Stockholders' Equity
  Preferred stock                             -            -
  Common stock                            1,324        1,357   (2.4%)
  Surplus                             1,183,169    1,301,004   (9.1%)
  Retained earnings                   1,156,869    1,029,247    12.4%
  Accumulated other comprehensive
   income (loss)                         (6,122)      (3,938)   55.5%
  Deferred compensation                       -       (2,081)(100.0%)
  Treasury stock, at cost               (64,860)        (611)    N/M
                                   ------------- ------------
    Total stockholders' equity        2,270,380    2,324,978   (2.3%)
                                   ------------- ------------
    Total liabilities and
     stockholders' equity           $20,926,523  $22,100,082   (5.3%)
                                   ============= ============




Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
                                                 September 30
(in thousands)                                      2005     % Change
----------------------------------------------------------------------
Assets
Cash and due from banks                             $386,151    (4.9%)
Interest-bearing deposits in other
 financial institutions                               14,598     89.3%
Federal funds sold and securities
 purchased under agreements to
 resell                                              103,481   (66.4%)
Investment securities available for
 sale, at fair value                               4,708,730   (27.0%)
Loans held for sale                                   98,473   (11.3%)
Loans                                             14,107,137      8.3%
Allowance for loan losses                           (190,080)     7.0%
                                                 ------------
    Loans, net                                    13,917,057      8.4%
Premises and equipment                               174,086     12.7%
Goodwill                                             679,993     28.2%
Other intangible assets, net                         115,692    (2.7%)
Other assets                                         543,470     30.8%
                                                 ------------
    Total assets                                 $20,741,731      0.9%
                                                 ============

Liabilities and Stockholders'
 Equity
Noninterest-bearing deposits                      $2,256,774     12.3%
Interest-bearing deposits, excluding
 Brokered CDs                                      9,516,792     16.0%
Brokered CDs                                         407,459     54.8%
                                                 ------------
    Total deposits                                12,181,025     16.6%
Short-term borrowings                              2,778,993   (27.9%)
Long-term funding                                  3,545,458   (35.9%)
Accrued expenses and other
 liabilities                                         173,690    (2.1%)
                                                 ------------
    Total liabilities                             18,679,166    (0.1%)
Stockholders' Equity
  Preferred stock                                          -
  Common stock                                         1,281      3.4%
  Surplus                                          1,064,833     11.1%
  Retained earnings                                  978,489     18.2%
  Accumulated other comprehensive
   income (loss)                                      21,776  (128.1%)
  Deferred compensation                               (3,814) (100.0%)
  Treasury stock, at cost                                  -      N/M
                                                 ------------
    Total stockholders' equity                     2,062,565     10.1%
                                                 ------------
    Total liabilities and
     stockholders' equity                        $20,741,731      0.9%
                                                 ============


N/M = Not Meaningful.

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


Consolidated Statements of Income
 (Unaudited)
Associated Banc-Corp
                                  For The Three Months Ended,
                                         September 30,
                                  ---------------------------
(in thousands, except per share
 amounts)                             2006          2005     % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans             $284,397     $223,202    27.4%
Interest and dividends on
 investment securities and
 deposits in other financial
 institutions
  Taxable                                30,225       40,050  (24.5%)
  Tax-exempt                              9,691        9,755   (0.7%)
 Interest on federal funds sold
  and securities purchased under
  agreements to resell                      260          384  (32.3%)
                                  -------------- ------------
    Total interest income               324,573      273,391    18.7%
Interest Expense
Interest on deposits                     99,242       53,598    85.2%
Interest on short-term borrowings        30,450       23,628    28.9%
Interest on long-term funding            26,664       32,087  (16.9%)
                                  -------------- ------------
    Total interest expense              156,356      109,313    43.0%
                                  -------------- ------------
Net Interest Income                     168,217      164,078     2.5%
Provision for loan losses                 3,837        3,345    14.7%
                                  -------------- ------------
Net interest income after
 provision for
 loan losses                            164,380      160,733     2.3%
Noninterest Income
Trust service fees                        9,339        8,667     7.8%
Service charges on deposit
 accounts                                23,438       22,830     2.7%
Mortgage banking, net                     2,833       11,969  (76.3%)
Card-based and other nondeposit
 fees                                    10,461        9,505    10.1%
Retail commissions                       14,360       12,905    11.3%
Bank owned life insurance income          4,390        2,441    79.8%
Asset sale gains, net                        89          942     N/M
Investment securities gains, net          1,164        1,446     N/M
Other                                     6,911        6,260    10.4%
                                  -------------- ------------
    Total noninterest income             72,985       76,965   (5.2%)
Noninterest Expense
Personnel expense                        71,321       66,403     7.4%
Occupancy                                10,442        9,412    10.9%
Equipment                                 4,355        4,199     3.7%
Data processing                           7,190        7,129     0.9%
Business development and
 advertising                              4,142        4,570   (9.4%)
Stationery and supplies                   1,787        1,599    11.8%
Other intangible amortization             2,280        1,903    19.8%
Other                                    22,169       22,133     0.2%
                                  -------------- ------------
    Total noninterest expense           123,686      117,348     5.4%
                                  -------------- ------------
Income before income taxes              113,679      120,350   (5.5%)
Income tax expense                       36,791       39,315   (6.4%)
                                  -------------- ------------
Net Income                              $76,888      $81,035   (5.1%)
                                  ============== ============

Earnings Per Share:
  Basic                                   $0.58        $0.63   (7.9%)
  Diluted                                 $0.58        $0.63   (7.9%)
Average Shares Outstanding:
  Basic                                 131,520      127,875     2.9%
  Diluted                               132,591      129,346     2.5%



Consolidated Statements of Income
 (Unaudited)
Associated Banc-Corp
                                  For The Nine Months Ended,
                                         September 30,
                                  ---------------------------
(in thousands, except per share
 amounts)                             2006          2005     % Change
----------------------------------------------------------------------
Interest Income
Interest and fees on loans             $823,985     $636,931     29.4%
Interest and dividends on
 investment securities and
 deposits in other financial
 institutions
  Taxable                               101,990      122,918   (17.0%)
  Tax-exempt                             29,640       28,985      2.3%
 Interest on federal funds sold
  and securities purchased under
  agreements to resell                      798          648     23.1%
                                  -------------- ------------
    Total interest income               956,413      789,482     21.1%
Interest Expense
Interest on deposits                    265,196      146,118     81.5%
Interest on short-term borrowings        97,820       62,528     56.4%
Interest on long-term funding            89,912       84,176      6.8%
                                  -------------- ------------
    Total interest expense              452,928      292,822     54.7%
                                  -------------- ------------
Net Interest Income                     503,485      496,660      1.4%
Provision for loan losses                11,988        9,343     28.3%
                                  -------------- ------------
Net interest income after
 provision for
 loan losses                            491,497      487,317      0.9%
Noninterest Income
Trust service fees                       27,543       25,962      6.1%
Service charges on deposit
 accounts                                67,379       63,710      5.8%
Mortgage banking, net                    13,066       24,229   (46.1%)
Card-based and other nondeposit
 fees                                    31,394       27,406     14.6%
Retail commissions                       46,203       42,980      7.5%
Bank owned life insurance income         11,053        6,920     59.7%
Asset sale gains, net                       213        1,179      N/M
Investment securities gains, net          5,158        2,937      N/M
Other                                    18,957       14,719     28.8%
                                  -------------- ------------
    Total noninterest income            220,966      210,042      5.2%
Noninterest Expense
Personnel expense                       215,116      206,322      4.3%
Occupancy                                32,854       28,674     14.6%
Equipment                                13,166       12,431      5.9%
Data processing                          21,537       20,150      6.9%
Business development and
 advertising                             12,492       12,662    (1.3%)
Stationery and supplies                   5,345        5,087      5.1%
Other intangible amortization             6,904        6,189     11.6%
Other                                    64,403       63,409      1.6%
                                  -------------- ------------
    Total noninterest expense           371,817      354,924      4.8%
                                  -------------- ------------
Income before income taxes              340,646      342,435    (0.5%)
Income tax expense                       98,502      109,915   (10.4%)
                                  -------------- ------------
Net Income                             $242,144     $232,520      4.1%
                                  ============== ============

Earnings Per Share:
  Basic                                   $1.82        $1.80      1.1%
  Diluted                                 $1.81        $1.79      1.1%
Average Shares Outstanding:
  Basic                                 132,951      128,825      3.2%
  Diluted                               134,119      130,252      3.0%


N/M - Not meaningful.
----------------------------------------------------------------------

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

(in thousands,
 except per share
 amounts)              3Q06      2Q06      1Q06      4Q05      3Q05
----------------------------------------------------------------------
Interest Income
Interest and fees on
 loans               $284,397  $278,573  $261,015  $252,443  $223,202
Interest and
 dividends on
 investment
 securities and
 deposits with other
 financial
 institutions
  Taxable              30,225    32,649    39,116    41,486    40,050
  Tax-exempt            9,691     9,786    10,163    10,325     9,755
Interest on federal
 funds sold and
 securities
 purchased under
 agreements to
 resell                   260       289       249       289       384
                     --------- --------- --------- --------- ---------
    Total interest
     income           324,573   321,297   310,543   304,543   273,391
Interest Expense
Interest on deposits   99,242    88,076    77,878    66,934    53,598
Interest on short-
 term borrowings       30,450    34,126    33,244    26,828    23,628
Interest on long-
 term funding          26,664    30,696    32,552    35,186    32,087
                     --------- --------- --------- --------- ---------
    Total interest
     expense          156,356   152,898   143,674   128,948   109,313
                     --------- --------- --------- --------- ---------
Net Interest Income   168,217   168,399   166,869   175,595   164,078
Provision for loan
 losses                 3,837     3,686     4,465     3,676     3,345
                     --------- --------- --------- --------- ---------
Net interest income
 after provision for
 loan losses          164,380   164,713   162,404   171,919   160,733
Noninterest Income
Trust service fees      9,339     9,307     8,897     9,055     8,667
Service charges on
 deposit accounts      23,438    22,982    20,959    23,073    22,830
Mortgage banking,
 net                    2,833     5,829     4,404    12,166    11,969
Card-based and other
 nondeposit fees       10,461    11,047     9,886    10,033     9,505
Retail commissions     14,360    16,365    15,478    13,624    12,905
Bank owned life
 insurance income       4,390     3,592     3,071     3,022     2,441
Asset sale gains
 (losses), net             89       354      (230)    2,766       942
Investment
 securities gains,
 net                    1,164     1,538     2,456     1,179     1,446
Other                   6,911     6,194     5,852     6,126     6,260
                     --------- --------- --------- --------- ---------
    Total
     noninterest
     income            72,985    77,208    70,773    81,044    76,965
Noninterest Expense
Personnel expense      71,321    74,492    69,303    68,619    66,403
Occupancy              10,442    10,654    11,758    10,287     9,412
Equipment               4,355     4,223     4,588     4,361     4,199
Data processing         7,190     7,099     7,248     7,240     7,129
Business development
 and advertising        4,142     4,101     4,249     4,999     4,570
Stationery and
 supplies               1,787     1,784     1,774     1,869     1,599
Other intangible
 amortization           2,280     2,281     2,343     2,418     1,903
Other                  22,169    20,026    22,208    25,746    22,133
                     --------- --------- --------- --------- ---------
    Total
     noninterest
     expense          123,686   124,660   123,471   125,539   117,348
                     --------- --------- --------- --------- ---------
Income before income
 taxes                113,679   117,261   109,706   127,424   120,350
Income tax expense     36,791    33,712    27,999    39,783    39,315
                     --------- --------- --------- --------- ---------
Net Income            $76,888   $83,549   $81,707   $87,641   $81,035
                     ========= ========= ========= ========= =========

Earnings Per Share:
  Basic                 $0.58     $0.63     $0.60     $0.65     $0.63
  Diluted               $0.58     $0.63     $0.60     $0.64     $0.63
Average Shares
 Outstanding:
  Basic               131,520   132,259   135,114   135,684   127,875
  Diluted             132,591   133,441   136,404   137,005   129,346
----------------------------------------------------------------------

Selected Quarterly
 Information
Associated Banc-Corp

----------------------------------------------------------------------
(in thousands,
 except per
 share & full
 time equivalent
 employee data)    YTD 2006     YTD 2005    3rd Qtr 2006 2nd Qtr 2006
----------------------------------------------------------------------
Summary of
 Operations
Net interest
 income              503,485      496,660       168,217      168,399
Provision for
 loan losses          11,988        9,343         3,837        3,686
Asset sale gains
 (losses), net           213        1,179            89          354
Investment
 securities
 gains, net            5,158        2,937         1,164        1,538
Noninterest
 income
 (excluding
 securities &
 asset gains)        215,595      205,926        71,732       75,316
Noninterest
 expense             371,817      354,924       123,686      124,660
Income before
 income taxes        340,646      342,435       113,679      117,261
Income taxes          98,502      109,915        36,791       33,712
Net income           242,144      232,520        76,888       83,549
Taxable
 equivalent
 adjustment           19,665       18,743         6,495        6,503

----------------------------------------------------------------------
Per Common Share
 Data (1)
Net income:
  Basic                $1.82        $1.80         $0.58        $0.63
  Diluted               1.81         1.79          0.58         0.63
Dividends               0.85         0.79          0.29         0.29
Market Value:
  High                $34.83       $34.74        $32.58       $34.45
  Low                  30.27        30.11         30.27        30.69
  Close                32.50        30.48         32.50        31.53
Book value             17.44        16.12         17.44        17.20

----------------------------------------------------------------------
Performance
 Ratios
 (annualized)
Earning assets
 yield                  6.67%        5.68%         6.89%        6.74%
Interest-bearing
 liabilities
 rate                   3.62         2.40          3.84         3.65
Net interest
 margin                 3.56         3.62          3.63         3.59
Return on
 average assets         1.52         1.51          1.46         1.58
Return on
 average equity        14.12        15.33         13.36        14.86
Return on
 tangible
 average equity
 (2)                   23.64        23.78         22.32        25.18
Efficiency ratio
 (3)                   50.33        49.20         50.19        49.82
Effective tax
 rate                  28.92        32.10         32.36        28.75
Dividend payout
 ratio (4)             46.70        43.89         50.00        46.03

----------------------------------------------------------------------
Average Balances
Assets           $21,339,661  $20,550,636   $20,891,001  $21,266,792
Earning assets    19,403,761   18,878,583    18,968,584   19,342,628
Interest-bearing
 liabilities      16,660,455   16,181,956    16,070,975   16,717,761
Loans             15,416,219   14,075,913    15,404,223   15,515,789
Deposits          13,581,666   12,186,667    13,884,404   13,534,725
Wholesale
 funding           5,368,157    6,183,220     4,636,853    5,391,108
Stockholders'
 equity            2,292,597    2,027,672     2,283,933    2,254,933
Stockholders'
 equity / assets       10.74%        9.87%        10.93%       10.60%


----------------------------------------------------------------------
At Period End
Assets                                      $20,926,523  $21,128,354
Loans                                        15,284,608   15,405,630
Allowance for
 loan losses                                    203,442      203,411
Goodwill                                        871,629      875,727
Mortgage
 servicing
 rights, net                                     67,931       69,282
Other intangible
 assets, net                                     44,613       46,893
Deposits                                     14,208,545   13,646,408
Wholesale
 funding                                      4,277,636    5,033,961
Stockholders'
 equity                                       2,270,380    2,274,860
Stockholders'
 equity / assets                                  10.85%       10.77%
Tangible equity
 / tangible
 assets (5)                                        6.77%        6.69%
Shares
 outstanding,
 end of period                                  130,216      132,283
Shares
 repurchased
 during period                                    2,000           31
Average per
 share cost of
 shares
 repurchased
 during period                                   $31.43           $-
Year-to-date
 shares
 repurchased
 during period                                    6,061        4,061
YTD average per
 share cost of
 shares
 repurchased
 during period                                   $32.74       $33.38

----------------------------------------------------------------------
Selected trend
 information
Average full
 time equivalent
 employees                                        5,117        5,112
Trust assets
 under
 management, at
 market value                                $5,500,000   $5,200,000
Mortgage loans
 originated for
 sale                                           388,914      359,361
Portfolio
 serviced for
 others                                       8,226,000    8,134,000
Mortgage
 servicing
 rights, net /
 Portfolio
 serviced for
 others                                            0.83%        0.85%

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

Selected Quarterly Information
Associated Banc-Corp

----------------------------------------------------------------------
(in thousands, except per
 share & full time equivalent
 employee data)                 1st Qtr 2006 4th Qtr 2005 3rd Qtr 2005
----------------------------------------------------------------------
Summary of Operations
Net interest income                 166,869      175,595      164,078
Provision for loan losses             4,465        3,676        3,345
Asset sale gains (losses), net         (230)       2,766          942
Investment securities gains,
 net                                  2,456        1,179        1,446
Noninterest income (excluding
 securities & asset gains)           68,547       77,099       74,577
Noninterest expense                 123,471      125,539      117,348
Income before income taxes          109,706      127,424      120,350
Income taxes                         27,999       39,783       39,315
Net income                           81,707       87,641       81,035
Taxable equivalent adjustment         6,667        6,766        6,347

----------------------------------------------------------------------
Per Common Share Data (1)
Net income:
  Basic                               $0.60        $0.65        $0.63
  Diluted                              0.60         0.64         0.63
Dividends                              0.27         0.27         0.27
Market Value:
  High                               $34.83       $33.23       $34.74
  Low                                 32.75        29.09        30.29
  Close                               33.98        32.55        30.48
Book value                            16.98        17.15        16.12

----------------------------------------------------------------------
Performance Ratios
 (annualized)
Earning assets yield                   6.38%        6.12%        5.83%
Interest-bearing liabilities
 rate                                  3.37         2.98         2.66
Net interest margin                    3.48         3.59         3.56
Return on average assets               1.52         1.58         1.56
Return on average equity              14.16        14.99        15.85
Return on tangible average
 equity (2)                           23.48        22.70        24.55
Efficiency ratio (3)                  51.00        48.38        47.90
Effective tax rate                    25.52        31.22        32.67
Dividend payout ratio (4)             45.00        41.54        42.86

----------------------------------------------------------------------
Average Balances
Assets                          $21,871,969  $22,022,165  $20,607,901
Earning assets                   19,910,420   20,080,758   18,960,035
Interest-bearing liabilities     17,204,860   17,090,134   16,198,492
Loans                            15,327,803   15,154,225   14,163,827
Deposits                         13,319,664   13,282,910   12,133,719
Wholesale funding                 6,092,275    6,280,793    6,307,705
Stockholders' equity              2,339,539    2,320,134    2,027,785
Stockholders' equity / assets         10.70%       10.54%        9.84%


----------------------------------------------------------------------
At Period End
Assets                          $21,518,860  $22,100,082  $20,741,731
Loans                            15,539,187   15,206,464   14,107,137
Allowance for loan losses           203,408      203,404      190,080
Goodwill                            875,727      877,680      679,993
Mortgage servicing rights, net       68,116       68,841       78,688
Other intangible assets, net         49,174       51,517       37,004
Deposits                         13,616,870   13,573,089   12,181,025
Wholesale funding                 5,496,039    6,014,783    6,324,451
Stockholders' equity              2,244,695    2,324,978    2,062,565
Stockholders' equity / assets         10.43%       10.52%        9.94%
Tangible equity / tangible
 assets (5)                            6.41%        6.59%        6.72%
Shares outstanding, end of
 period                             132,167      135,602      127,985
Shares repurchased during
 period                               4,030          974            -
Average per share cost of
 shares repurchased during
 period                              $33.63       $30.82           $-
Year-to-date shares
 repurchased during period            4,030        3,496        2,522
YTD average per share cost of
 shares repurchased during
 period                              $33.63       $32.43       $33.05

----------------------------------------------------------------------
Selected trend information
Average full time equivalent
 employees                            5,147        5,113        4,815
Trust assets under management,
 at market value                 $5,200,000   $5,000,000   $4,900,000
Mortgage loans originated for
 sale                               246,724      356,280      498,343
Portfolio serviced for others     8,050,000    8,028,000    9,492,000
Mortgage servicing rights, net
 / Portfolio serviced for
 others                                0.85%        0.86%        0.83%

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


(1) Per share data adjusted retroactively for stock splits & stock
 dividends.

(2) Return on tangible average equity = Net income divided by average
 equity excluding average goodwill & other intangible assets. This is
 a non-GAAP financial measure.

(3) Efficiency ratio = Noninterest expense divided by sum of taxable
 equivalent net interest income plus noninterest income, excluding
 investment securities gains, net, & asset sales gains, net.

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

(5) Tangible equity to tangible assets = Stockholders' equity
 excluding goodwill & other intangible assets divided by assets
 excluding goodwill & other intangible assets. This is a non-GAAP
 financial measure.
----------------------------------------------------------------------

Financial Summary and Comparison
Associated Banc-Corp                       Three months ended
                                             September 30,
                                           ---------------------------
(in thousands)                                 2006     2005 % Change
----------------------------------------------------------------------
Allowance for Loan Losses
Beginning balance                          $203,411 $190,024     7.0%
Provision for loan losses                     3,837    3,345    14.7%
Charge offs                                  (6,448)  (5,268)   22.4%
Recoveries                                    2,642    1,979    33.5%
                                           ------------------
Net charge offs                              (3,806)  (3,289)   15.7%
                                           ------------------
Ending Balance                             $203,442 $190,080     7.0%
                                           ==================

Financial Summary and Comparison
Associated Banc-Corp                       Nine months ended
                                             September 30,
                                           ---------------------------
(in thousands)                                 2006     2005 % Change
----------------------------------------------------------------------
Allowance for Loan Losses
Beginning balance                          $203,404 $189,762     7.2%
Provision for loan losses                    11,988    9,343    28.3%
Charge offs                                 (19,933) (16,601)   20.1%
Recoveries                                    7,983    7,576     5.4%
                                           ------------------
Net charge offs                             (11,950)  (9,025)   32.4%
                                           ------------------
Ending Balance                             $203,442 $190,080     7.0%
                                           ==================


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


Credit Quality
                                                              3Q06 vs
                                         Sept 30,   June 30,    2Q06
                                            2006       2006   % Change
                                         -----------------------------
Nonaccrual loans                          $123,743    $95,426   29.7%
Loans 90 or more days past due and still
 accruing                                    4,826      7,591 (36.4%)
Restructured loans                              28         29  (3.4%)
                                         ---------------------
    Total nonperforming loans              128,597    103,046   24.8%
Other real estate owned                     13,866     14,947  (7.2%)
                                         ---------------------
    Total nonperforming assets             142,463    117,993   20.7%
                                         =====================
Provision for loan losses                    3,837      3,686    4.1%
Net charge offs                              3,806      3,683    3.3%

Allowance for loan losses / loans             1.33%      1.32%
Allowance for loan losses / nonperforming
 loans                                      158.20     197.40
Nonperforming loans / total loans             0.84       0.67
Nonperforming assets / total assets           0.68       0.56
Net charge offs / average loans
 (annualized)                                 0.10       0.10
Year-to-date net charge offs / average
 loans                                        0.10       0.11


Credit Quality
                                                            3Q06 vs
                               March 31,  Dec 31,  Sept 30,    3Q05
                                  2006      2005      2005  % Change
                               ---------------------------------------
Nonaccrual loans                $102,824  $95,313  $107,298     15.3%
Loans 90 or more days past due
 and still accruing                7,068    3,270     3,354     43.9%
Restructured loans                    31       32        33   (15.2%)
                               -----------------------------
    Total nonperforming loans    109,923   98,615   110,685     16.2%
Other real estate owned           11,676   11,336    10,017     38.4%
                               -----------------------------
    Total nonperforming assets   121,599  109,951   120,702     18.0%
                               =============================
Provision for loan losses          4,465    3,676     3,345     14.7%
Net charge offs                    4,461    3,635     3,289     15.7%

Allowance for loan losses /
 loans                              1.31%    1.34%     1.35%
Allowance for loan losses /
 nonperforming loans              185.05   206.26    171.73
Nonperforming loans / total
 loans                              0.71     0.65      0.78
Nonperforming assets / total
 assets                             0.57     0.50      0.58
Net charge offs / average loans
 (annualized)                       0.12     0.10      0.09
Year-to-date net charge offs /
 average loans                      0.12     0.09      0.09



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


Period End Loan Composition
                                                             3Q06 vs
                                                                2Q06
                                 Sept 30, 2006 June 30, 2006 % Change
                                 -------------------------------------
Commercial, financial &
 agricultural                       $3,549,216    $3,505,819     1.2%
Real estate - construction           2,186,810     2,122,136     3.0%
Commercial real estate               3,755,037     3,872,819   (3.0%)
Lease financing                         79,234        74,919     5.8%
                                 ----------------------------
  Commercial                         9,570,297     9,575,693   (0.1%)
Home equity (a)                      2,166,312     2,151,858     0.7%
Installment                            940,139       945,123   (0.5%)
                                 ----------------------------
  Retail                             3,106,451     3,096,981     0.3%
  Residential mortgage               2,607,860     2,732,956   (4.6%)
                                 ----------------------------
  Total loans                      $15,284,608   $15,405,630   (0.8%)
                                 ============================



Period End Loan
 Composition                                                  3Q06 vs
                                                                3Q05
                      Mar 31, 2006 Dec 31, 2005 Sept 30, 2005 % Change
                      ------------------------------------------------
Commercial, financial
 & agricultural        $3,571,835   $3,417,343     $3,213,656    10.4%
Real estate -
 construction           1,981,473    1,783,267      1,519,681    43.9%
Commercial real
 estate                 4,024,260    4,064,327      3,648,169     2.9%
Lease financing            62,600       61,315         57,270    38.4%
                      ----------------------------------------
  Commercial            9,640,168    9,326,252      8,438,776    13.4%
Home equity (a)         2,121,601    2,025,055      1,878,436    15.3%
Installment               957,877    1,003,938      1,024,356   (8.2%)
                      ----------------------------------------
  Retail                3,079,478    3,028,993      2,902,792     7.0%
  Residential
   mortgage             2,819,541    2,851,219      2,765,569   (5.7%)
                      ----------------------------------------
  Total loans         $15,539,187  $15,206,464    $14,107,137     8.3%
                      ========================================


(a) Home equity includes home equity lines and residential
 mortgage junior liens.

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


Period End Deposit Composition
                                                             3Q06 vs
                                                               2Q06
                                 Sept 30, 2006 June 30, 2006 % Change
                                 -------------------------------------
Demand                              $2,534,686   $2,276,463     11.3%
Savings                                959,650    1,031,993    (7.0%)
Interest-bearing demand              1,712,833    1,975,364   (13.3%)
Money market                         3,959,719    3,434,288     15.3%
Brokered CDs                           630,637      518,354     21.7%
Other time deposits                  4,411,020    4,409,946      0.0%
                                 ---------------------------
  Total deposits                   $14,208,545  $13,646,408      4.1%
                                 ===========================


Period End Deposit
 Composition
                                                             3Q06 vs
                                                                3Q05
                     Mar 31, 2006 Dec 31, 2005 Sept 30, 2005 % Change
                     -------------------------------------------------
Demand                $2,319,075   $2,504,926     $2,256,774     12.3%
Savings                1,074,938    1,079,851      1,074,234   (10.7%)
Interest-bearing
 demand                2,347,104    2,549,782      2,252,711   (24.0%)
Money market           2,863,174    2,629,933      2,240,606     76.7%
Brokered CDs             567,660      529,307        407,459     54.8%
Other time deposits    4,444,919    4,279,290      3,949,241     11.7%
                     ----------------------------------------
  Total deposits     $13,616,870  $13,573,089    $12,181,025     16.6%
                     ========================================


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

Net Interest Income Analysis - Taxable
 Equivalent Basis
Associated Banc-Corp                         Nine months ended
                                             September 30, 2006
                                       -------------------------------

                                                    Interest  Average
(in thousands)                           Average    Income /   Yield /
                                          Balance    Expense    Rate
                                       -------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                        $9,534,532   $525,319   7.27%
      Residential mortgage               2,804,961    122,006   5.80
      Retail                             3,076,726    178,541   7.74
                                       -----------------------
         Total loans                    15,416,219    825,866   7.09
   Investments and other                 3,987,542    150,212   5.02
                                       -----------------------
Total earning assets                    19,403,761    976,078   6.67
   Other assets, net                     1,935,900
                                       ------------
Total assets                           $21,339,661
                                       ============

Interest-bearing liabilities:
   Savings deposits                     $1,037,542     $2,921   0.38%
   Interest-bearing demand deposits      2,087,670     26,950   1.73
   Money market deposits                 3,188,616     84,086   3.53
   Time deposits, excluding Brokered
    CDs                                  4,398,820    129,618   3.94
                                       -----------------------
      Total interest-bearing deposits,
       excluding Brokered CDs           10,712,648    243,575   3.04
   Brokered CDs                            579,650     21,621   4.99
                                       -----------------------
      Total interest-bearing deposits   11,292,298    265,196   3.14
   Wholesale funding                     5,368,157    187,732   4.62
                                       -----------------------
Total interest-bearing liabilities      16,660,455    452,928   3.62
   Noninterest-bearing demand            2,289,368
   Other liabilities                        97,241
   Stockholders' equity                  2,292,597
                                       ------------
Total liabilities and stockholders'
 equity                                $21,339,661
                                       ============

                                                   -----------
Net interest income and rate spread
 (1)                                                 $523,150   3.05%
                                                   ===========
Net interest margin (1)                                         3.56%
Taxable equivalent adjustment                         $19,665
                                                   ===========

Net Interest Income Analysis - Taxable
 Equivalent Basis
Associated Banc-Corp                          Nine months ended
                                              September 30, 2005
                                       -------------------------------

                                                    Interest  Average
(in thousands)                           Average    Income /   Yield /
                                          Balance    Expense    Rate
                                       -------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                        $8,356,785   $375,704    5.93%
      Residential mortgage               2,865,319    119,614    5.56
      Retail                             2,853,809    142,965    6.68
                                       -----------------------
         Total loans                    14,075,913    638,283    6.01
   Investments and other                 4,802,670    169,942    4.72
                                       -----------------------
Total earning assets                    18,878,583    808,225    5.68
   Other assets, net                     1,672,053
                                       ------------
Total assets                           $20,550,636
                                       ============

Interest-bearing liabilities:
   Savings deposits                     $1,116,871     $3,077    0.37%
   Interest-bearing demand deposits      2,380,397     19,530    1.10
   Money market deposits                 2,140,763     28,505    1.78
   Time deposits, excluding Brokered
    CDs                                  3,996,324     86,545    2.90
                                       -----------------------
      Total interest-bearing deposits,
       excluding Brokered CDs            9,634,355    137,657    1.91
   Brokered CDs                            364,381      8,461    3.10
                                       -----------------------
      Total interest-bearing deposits    9,998,736    146,118    1.95
   Wholesale funding                     6,183,220    146,704    3.13
                                       -----------------------
Total interest-bearing liabilities      16,181,956    292,822    2.40
   Noninterest-bearing demand            2,187,931
   Other liabilities                       153,077
   Stockholders' equity                  2,027,672
                                       ------------
Total liabilities and stockholders'
 equity                                $20,550,636
                                       ============

                                                   -----------
Net interest income and rate spread
 (1)                                                 $515,403    3.28%
                                                   ===========
Net interest margin (1)                                          3.62%
Taxable equivalent adjustment                         $18,743
                                                   ===========
----------------------------------------------------------------------


                                             Three months ended
                                             September 30, 2006
                                       ------------------------------

                                                    Interest  Average
                                         Average    Income /   Yield /
                                          Balance    Expense    Rate
                                       -------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                        $9,571,264   $182,603   7.47%
      Residential mortgage               2,727,101     40,348   5.89
      Retail                             3,105,858     62,127   7.96
                                       -----------------------
         Total loans                    15,404,223    285,078   7.29
   Investments and other                 3,564,361     45,990   5.16
                                       -----------------------
Total earning assets                    18,968,584    331,068   6.89
   Other assets, net                     1,922,417
                                       ------------
Total assets                           $20,891,001
                                       ============

Interest-bearing liabilities:
   Savings deposits                       $993,677       $998   0.40%
   Interest-bearing demand deposits      1,740,296      7,571   1.73
   Money market deposits                 3,582,339     34,438   3.81
   Time deposits, excluding Brokered
    CDs                                  4,433,660     47,049   4.21
                                       -----------------------
      Total interest-bearing deposits,
       excluding Brokered CDs           10,749,972     90,056   3.32
   Brokered CDs                            684,150      9,186   5.33
                                       -----------------------
      Total interest-bearing deposits   11,434,122     99,242   3.44
   Wholesale funding                     4,636,853     57,114   4.83
                                       -----------------------
Total interest-bearing liabilities      16,070,975    156,356   3.84
   Noninterest-bearing demand            2,450,282
   Other liabilities                        85,811
   Stockholders' equity                  2,283,933
                                       ------------
Total liabilities and stockholders'
 equity                                $20,891,001
                                       ============

                                                   -----------
Net interest income and rate spread
 (1)                                                 $174,712   3.05%
                                                   ===========
Net interest margin (1)                                         3.63%
Taxable equivalent adjustment                          $6,495
                                                   ===========



                                             Three months ended
                                             September 30, 2005
                                       -------------------------------

                                                    Interest  Average
                                         Average    Income /   Yield /
                                          Balance    Expense    Rate
                                       -------------------------------

Earning assets:
   Loans: (1) (2) (3)
      Commercial                        $8,411,678   $134,503    6.26%
      Residential mortgage               2,880,685     40,253    5.56
      Retail                             2,871,464     48,940    6.78
                                       -----------------------
         Total loans                    14,163,827    223,696    6.22
   Investments and other                 4,796,208     56,042    4.67
                                       -----------------------
Total earning assets                    18,960,035    279,738    5.83
   Other assets, net                     1,647,866
                                       ------------
Total assets                           $20,607,901
                                       ============

Interest-bearing liabilities:
   Savings deposits                     $1,097,955     $1,024    0.37%
   Interest-bearing demand deposits      2,193,600      6,107    1.10
   Money market deposits                 2,198,538     11,822    2.13
   Time deposits, excluding Brokered
    CDs                                  3,913,389     30,395    3.08
                                       -----------------------
      Total interest-bearing deposits,
       excluding Brokered CDs            9,403,482     49,348    2.08
   Brokered CDs                            487,305      4,250    3.46
                                       -----------------------
      Total interest-bearing deposits    9,890,787     53,598    2.15
   Wholesale funding                     6,307,705     55,715    3.47
                                       -----------------------
Total interest-bearing liabilities      16,198,492    109,313    2.66
   Noninterest-bearing demand            2,242,932
   Other liabilities                       138,692
   Stockholders' equity                  2,027,785
                                       ------------
Total liabilities and stockholders'
 equity                                $20,607,901
                                       ============

                                                   -----------
Net interest income and rate spread
 (1)                                                 $170,425    3.17%
                                                   ===========
Net interest margin (1)                                          3.56%
Taxable equivalent adjustment                          $6,347
                                                   ===========



(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.


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

Source: Associated Banc-Corp

Contact: Associated Banc-Corp Investors: Joe Selner, Chief Financial Officer, 920-491-7120 or Media: Cindy Moon-Mogush, Corporate Communications, 920-431-8034
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