Associated Banc-Corp (ASB) 8-K Associated earns 59 cents per share in second quarter 2007

Exhibit 99.1

	NEWS RELEASE
	For more information: Investors: Joe Selner, Chief Financial Officer, 920-491-7120 Media: Cindy Moon-Mogush, Corporate Communications, 920-431-8034

Associated earns 59 cents per share in second quarter 2007

• Net income of $75.8 million

• Solid growth in core fee-based income

• Net charge offs at 14 bp of average loans

• First National Bank of Hudson successfully integrated

• Accelerated stock buyback of 2 million shares executed in June

GREEN BAY, Wis. —July 19, 2007 — Associated Banc-Corp (NASDAQ: ASBC) earned $75.8 million, or $.59 per share, in the second quarter of 2007. Comparatively, net income was $73.4 million ($.57 per share) for the first quarter of 2007 and $83.5 million ($.63 per share) for the second quarter of 2006.

Return on average assets (ROA) was 1.48 percent, 1.46 percent and 1.58 percent for the second quarter of 2007, the first quarter of 2007 and the second quarter of 2006, respectively. The return on average equity (ROE) for the same quarters was 13.49 percent, 13.35 percent and 14.86 percent, respectively. Return on average tangible equity (which is a non-GAAP measure that excludes average goodwill and other intangible assets from average equity) was 23.14 percent in the second quarter of 2007, versus 22.63 percent in the first quarter of 2007 and 25.18 percent in the second quarter of 2006.

Net income was $149.2 million, or $1.16 per share, for the six months ending June 30, 2007, compared to net income of $165.3 million, or $1.23 per share, for the first half of 2006.

The first and second quarters of 2006 benefited from the resolution of certain multi-jurisdictional tax issues and changes in exposure of uncertain tax positions, resulting in the reduction of tax liabilities and income tax expense, and positively impacting earnings per share by approximately $.06 for the first quarter and $.03 for the second quarter.

Loans at June 30, 2007, were $15.2 billion, up $0.3 billion (or 8 percent annualized) over the first quarter of 2007, largely due to the acquisition of First National Bank of Hudson on June 1, 2007. Excluding the acquired loans, loan growth came from commercial and industrial (up $118 million or 12 percent annualized), home equity (up $52 million or 10 percent annualized) and real estate construction loans (up $28 million or 5 percent annualized). Declines occurred in commercial real estate (down $105 million), residential mortgages (down $72 million) and other consumer loans (down $16 million). On average, loans were $15.1 billion for the second quarter of 2007, up 3 percent annualized over the first quarter. The ratio of loans to deposits improved to 108 percent at June 30, 2007, compared to 113 percent at June 30, 2006.

Average deposits were $13.7 billion for the second quarter of 2007, up 4 percent annualized over the first quarter. Compared to a year ago, noninterest-bearing deposits excluding the acquisition were up $141 million, or 6 percent.

Net interest income for the second quarter of 2007 was $157.5 million and the net interest margin was 3.53 percent. Each experienced compression in comparison to the first quarter of 2007. “Despite the challenging environment, we remain focused on our strategies and are seeing momentum in commercial loan and demand deposit growth, combined with a continued increase in core fee income,” Associated Chairman and CEO Paul S. Beideman said.

Net charge offs to average loans were 14 basis points for the second quarter of 2007. The loan loss reserve ratio was 1.36 percent and the provision for loan losses approximated net charge off levels. At June 30, 2007, nonperforming loans represented 1.19 percent of total loans, with commercial nonperforming loans up 18 percent over March 31. “Nonperforming loans have increased largely as a result of the softer real estate markets and longer resolution periods. We believe net charge offs will stabilize at Associated’s historical levels of 18 to 22 basis points,” Beideman said.

Noninterest income for the second quarter of 2007 was up 11 percent over the first quarter and increased 18 percent over the second quarter of last year. On a year-to-date basis, core fee-based revenue was $123.9 million, up $9.0 million or 8 percent over the six-month period last year, with solid growth in deposit service charges (11 percent), trust service fees (15 percent), card-based and other fees (10 percent) and a 3 percent decline in insurance commissions.

Net mortgage banking income remained strong for the second quarter of 2007. The quarterly results were affected by a $3.8 million favorable valuation reserve recovery, while the first quarter of 2007 included a $7.8 million gain on a March 2007 bulk servicing sale and an unfavorable $1.2 million valuation reserve expense. On a year-to-date basis, excluding valuation reserve changes and bulk servicing gains, core net mortgage banking income was $8.3 million for the first half of 2007, compared to $6.6 million last year.

Noninterest expenses remain controlled, with an efficiency ratio of 53.23 percent and 52.73 percent for the three and six months ending June 30, 2007, respectively. Noninterest expense was up $4.5 million or 4 percent over the first quarter of 2007, with a $2.2 million increase in personnel costs and a $2.3 million increase in non-personnel costs, both impacted by the integration of First National Bank of Hudson.

During the second quarter of 2007, Associated repurchased 2 million shares of its common stock at a total purchase cost of $66 million. During the second quarter, the company paid a dividend of 31 cents per share, up 7 percent from the second-quarter dividend in 2006.

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 800-936-9754. The number for international callers is 973-935-2048. Participants should ask the operator for the Associated Banc-Corp second quarter 2007 earnings call, or for call ID number 8962999. A replay of the call will be available starting at 6 p.m. CDT on July 19 through August 10, 2007, by calling 877-519-4471 (toll-free) domestically or 973-341-3080 internationally. The call ID number, 8962999, is required to access the replay.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $21 billion. Associated has more than 300 banking offices serving over 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.

Six pages of tables follow.

— 30 —

Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp

	June 30,			December 31,			Jun07 vs Dec06			June 30,			Jun07 vs Jun06
(in thousands)	2007			2006			% Change			2006			% Change
Assets
Cash and due from banks	$	432,887		$	458,344			(5.6	%)	$	429,625			0.8	%
Interest-bearing deposits in other financial institutions		10,828			10,505			3.1	%		21,567			(49.8	%)
Federal funds sold and securities purchased under agreements to resell		18,729			13,187			42.0	%		14,344			30.6	%
Investment securities available for sale, at fair value		3,373,700			3,436,621			(1.8	%)		3,505,471			(3.8	%)
Loans held for sale		75,135			370,758			(79.7	%)		54,016			39.1	%
Loans		15,154,232			14,881,526			1.8	%		15,405,630			(1.6	%)
Allowance for loan losses		(206,493	)		(203,481	)		1.5	%		(203,411	)		1.5	%
Loans, net		14,947,739			14,678,045			1.8	%		15,202,219			(1.7	%)
Premises and equipment, net		198,453			196,007			1.2	%		198,279			0.1	%
Goodwill		929,168			871,629			6.6	%		875,727			6.1	%
Other intangible assets, net		100,599			109,234			(7.9	%)		116,175			(13.4	%)
Other assets		761,902			717,054			6.3	%		710,931			7.2	%
Total assets	$	20,849,140		$	20,861,384			(0.1	%)	$	21,128,354			(1.3	%)
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,466,130		$	2,756,222			(10.5	%)	$	2,276,463			8.3	%
Interest-bearing deposits, excluding Brokered CDs		10,859,588			10,922,274			(0.6	%)		10,851,591			0.1	%
Brokered CDs		751,900			637,575			17.9	%		518,354			45.1	%
Total deposits		14,077,618			14,316,071			(1.7	%)		13,646,408			3.2	%
Short-term borrowings		2,416,371			2,042,685			18.3	%		2,561,092			(5.7	%)
Long-term funding		1,932,194			2,071,142			(6.7	%)		2,472,869			(21.9	%)
Accrued expenses and other liabilities		194,046			185,993			4.3	%		173,125			12.1	%
Total liabilities		18,620,229			18,615,891			0.0	%		18,853,494			(1.2	%)
Stockholders’ Equity
Preferred stock		—			—						—
Common stock		1,278			1,304			(2.0	%)		1,324			(3.5	%)
Surplus		1,038,517			1,120,934			(7.4	%)		1,183,047			(12.2	%)
Retained earnings		1,250,989			1,189,658			5.2	%		1,119,036			11.8	%
Accumulated other comprehensive loss		(38,714	)		(16,453	)		135.3	%		(28,047	)		38.0	%
Treasury stock, at cost		(23,159	)		(49,950	)		(53.6	%)		(500	)	NM
Total stockholders’ equity		2,228,911			2,245,493			(0.7	%)		2,274,860			(2.0	%)
Total liabilities and stockholders’ equity	$	20,849,140		$	20,861,384			(0.1	%)	$	21,128,354			(1.3	%)

N/M = Not Meaningful.

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

	For The Three Months Ended							For The Six Months Ended
	June 30,				2Q07 vs 2Q06			June 30,				First half 07 vs 06
(in thousands, except per share amounts)	2007		2006		% Change			2007		2006		% Change
Interest Income
Interest and fees on loans	$	276,981	$	278,573		(0.6	%)	$	550,942	$	539,588		2.1	%
Interest and dividends on investment securities and deposits in other financial institutions
Taxable		30,583		32,649		(6.3	%)		61,109		71,765		(14.8	%)
Tax-exempt		9,785		9,786		(0.0	%)		19,579		19,949		(1.9	%)
Interest on federal funds sold and securities purchased under agreements to resell		324		289		12.1	%		507		538		(5.8	%)
Total interest income		317,673		321,297		(1.1	%)		632,137		631,840		0.0	%
Interest Expense
Interest on deposits		101,780		88,076		15.6	%		200,079		165,954		20.6	%
Interest on short-term borrowings		35,423		34,126		3.8	%		70,606		67,370		4.8	%
Interest on long-term funding		22,995		30,696		(25.1	%)		44,931		63,248		(29.0	%)
Total interest expense		160,198		152,898		4.8	%		315,616		296,572		6.4	%
Net Interest Income		157,475		168,399		(6.5	%)		316,521		335,268		(5.6	%)
Provision for loan losses		5,193		3,686		40.9	%		10,275		8,151		26.1	%
Net interest income after provision for loan losses		152,282		164,713		(7.5	%)		306,246		327,117		(6.4	%)
Noninterest Income
Trust service fees		10,711		9,307		15.1	%		21,020		18,204		15.5	%
Service charges on deposit accounts		25,545		22,982		11.2	%		48,567		43,941		10.5	%
Mortgage banking, net		9,696		5,829		66.3	%		19,246		10,233		88.1	%
Card-based and other nondeposit fees		11,711		11,047		6.0	%		23,034		20,933		10.0	%
Retail commissions		15,773		16,365		(3.6	%)		31,252		31,843		(1.9	%)
Bank owned life insurance income		4,365		3,592		21.5	%		8,529		6,663		28.0	%
Asset sale gains, net		442		354		N/M			2,325		124		N/M
Investment securities gains, net		6,075		1,538		N/M			7,110		3,994		N/M
Other		7,170		6,194		15.8	%		13,105		12,046		8.8	%
Total noninterest income		91,488		77,208		18.5	%		174,188		147,981		17.7	%
Noninterest Expense
Personnel expense		76,277		74,492		2.4	%		150,324		143,795		4.5	%
Occupancy		11,321		10,654		6.3	%		22,908		22,412		2.2	%
Equipment		4,254		4,223		0.7	%		8,648		8,811		(1.8	%)
Data processing		7,832		7,711		1.6	%		15,510		15,751		(1.5	%)
Business development and advertising		5,068		4,101		23.6	%		9,473		8,350		13.4	%
Other intangible amortization		1,718		2,281		(24.7	%)		3,379		4,624		(26.9	%)
Other		26,174		21,198		23.5	%		50,538		44,388		13.9	%
Total noninterest expense		132,644		124,660		6.4	%		260,780		248,131		5.1	%
Income before income taxes		111,126		117,261		(5.2	%)		219,654		226,967		(3.2	%)
Income tax expense		35,301		33,712		4.7	%		70,434		61,711		14.1	%
Net Income	$	75,825	$	83,549		(9.2	%)	$	149,220	$	165,256		(9.7	%)
Earnings Per Share:
Basic	$	0.59	$	0.63		(6.3	%)	$	1.17	$	1.24		(5.6	%)
Diluted	$	0.59	$	0.63		(6.3	%)	$	1.16	$	1.23		(5.7	%)
Average Shares Outstanding:
Basic		127,606		132,259		(3.5	%)		127,796		133,678		(4.4	%)
Diluted		128,750		133,441		(3.5	%)		129,034		134,903		(4.4	%)

N/M — Not meaningful.

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

(in thousands, except per share amounts)	2Q07		1Q07		4Q06			3Q06		2Q06
Interest Income
Interest and fees on loans	$	276,981	$	273,961	$	282,918		$	284,397	$	278,573
Interest and dividends on investment securities and deposits in other financial institutions
Taxable		30,583		30,526		29,962			30,225		32,649
Tax-exempt		9,785		9,794		9,794			9,691		9,786
Interest on federal funds sold and securities purchased under agreements to resell		324		183		292			260		289
Total interest income		317,673		314,464		322,966			324,573		321,297
Interest Expense
Interest on deposits		101,780		98,299		98,757			99,242		88,076
Interest on short-term borrowings		35,423		35,183		31,971			30,450		34,126
Interest on long-term funding		22,995		21,936		26,174			26,664		30,696
Total interest expense		160,198		155,418		156,902			156,356		152,898
Net Interest Income		157,475		159,046		166,064			168,217		168,399
Provision for loan losses		5,193		5,082		7,068			3,837		3,686
Net interest income after provision for loan losses		152,282		153,964		158,996			164,380		164,713
Noninterest Income
Trust service fees		10,711		10,309		9,941			9,339		9,307
Service charges on deposit accounts		25,545		23,022		24,214			23,438		22,982
Mortgage banking, net		9,696		9,550		1,735			2,833		5,829
Card-based and other nondeposit fees		11,711		11,323		11,267			10,461		11,047
Retail commissions		15,773		15,479		15,053			14,360		16,365
Bank owned life insurance income		4,365		4,164		5,102			4,390		3,592
Asset sale gains (losses), net		442		1,883		91			89		354
Investment securities gains (losses), net		6,075		1,035		(436	)		1,164		1,538
Other		7,170		5,935		7,568			6,911		6,194
Total noninterest income		91,488		82,700		74,535			72,985		77,208
Noninterest Expense
Personnel expense		76,277		74,047		68,315			71,321		74,492
Occupancy		11,321		11,587		10,971			10,442		10,654
Equipment		4,254		4,394		4,300			4,355		4,223
Data processing		7,832		7,678		8,033			7,668		7,711
Business development and advertising		5,068		4,405		4,365			4,142		4,101
Other intangible amortization		1,718		1,661		1,999			2,280		2,281
Other		26,174		24,364		26,415			23,478		21,198
Total noninterest expense		132,644		128,136		124,398			123,686		124,660
Income before income taxes		111,126		108,528		109,133			113,679		117,261
Income tax expense		35,301		35,133		34,632			36,791		33,712
Net Income	$	75,825	$	73,395	$	74,501		$	76,888	$	83,549
Earnings Per Share:
Basic	$	0.59	$	0.57	$	0.58		$	0.58	$	0.63
Diluted	$	0.59	$	0.57	$	0.57		$	0.58	$	0.63
Average Shares Outstanding:
Basic		127,606		127,988		129,202			131,520		132,259
Diluted		128,750		129,299		130,366			132,591		133,441

Selected Quarterly Information
Associated Banc-Corp

(in thousands, except per share & full time equivalent employee data)	YTD 2007			YTD 2006			2nd Qtr 2007			1st Qtr 2007			4th Qtr 2006			3rd Qtr 2006			2nd Qtr 2006
Summary of Operations
Net interest income		316,521			335,268			157,475			159,046			166,064			168,217			168,399
Provision for loan losses		10,275			8,151			5,193			5,082			7,068			3,837			3,686
Asset sale gains, net		2,325			124			442			1,883			91			89			354
Investment securities gains (losses), net		7,110			3,994			6,075			1,035			(436	)		1,164			1,538
Noninterest income (excluding securities & asset gains)		164,753			143,863			84,971			79,782			74,880			71,732			75,316
Noninterest expense		260,780			248,131			132,644			128,136			124,398			123,686			124,660
Income before income taxes		219,654			226,967			111,126			108,528			109,133			113,679			117,261
Income taxes		70,434			61,711			35,301			35,133			34,632			36,791			33,712
Net income		149,220			165,256			75,825			73,395			74,501			76,888			83,549
Taxable equivalent adjustment		13,284			13,170			6,724			6,560			6,568			6,495			6,503
Per Common Share Data (1)
Net income:
Basic	$	1.17		$	1.24		$	0.59		$	0.57		$	0.58		$	0.58		$	0.63
Diluted		1.16			1.23			0.59			0.57			0.57			0.58			0.63
Dividends		0.60			0.56			0.31			0.29			0.29			0.29			0.29
Market Value:
High	$	35.43		$	34.83		$	33.49		$	35.43		$	35.13		$	32.58		$	34.45
Low		32.14			30.69			32.14			33.16			32.13			30.27			30.69
Close		32.70			31.53			32.70			33.60			34.88			32.50			31.53
Book value		17.56			17.20			17.56			17.54			17.44			17.44			17.20
Performance Ratios (annualized)
Earning assets yield		7.01	%		6.56	%		6.99	%		7.03	%		6.95	%		6.89	%		6.74	%
Interest-bearing liabilities rate		4.04			3.51			4.06			4.02			3.93			3.84			3.65
Net interest margin		3.57			3.53			3.53			3.62			3.64			3.63			3.59
Return on average assets		1.47			1.55			1.48			1.46			1.43			1.46			1.58
Return on average equity		13.42			14.51			13.49			13.35			13.19			13.36			14.86
Return on tangible average equity (2)		22.89			24.31			23.14			22.63			22.31			22.32			25.18
Efficiency ratio (3)		52.73			50.40			53.23			52.22			50.26			50.19			49.82
Effective tax rate		32.07			27.19			31.77			32.37			31.73			32.36			28.75
Dividend payout ratio (4)		51.28			45.16			52.54			50.88			50.00			50.00			46.03
Average Balances
Assets	$	20,466,452		$	21,567,709		$	20,558,803		$	20,373,075		$	20,635,203		$	20,891,001		$	21,266,792
Earning assets		18,519,978			19,624,955			18,605,024			18,433,986			18,713,784			18,968,584			19,342,628
Interest-bearing liabilities		15,755,186			16,959,965			15,834,843			15,674,645			15,765,774			16,070,975			16,717,761
Loans		15,020,844			15,422,315			15,082,850			14,958,148			15,233,207			15,404,223			15,515,789
Deposits		13,630,815			13,427,789			13,702,872			13,557,958			13,748,444			13,884,404			13,534,725
Wholesale funding		4,472,630			5,739,755			4,482,437			4,462,713			4,547,042			4,636,853			5,391,108
Stockholders’ equity		2,241,460			2,297,002			2,253,872			2,228,909			2,240,143			2,283,933			2,254,933
Stockholders’ equity / assets		10.95	%		10.65	%		10.96	%		10.94	%		10.86	%		10.93	%		10.60	%
At Period End
Assets							$	20,849,140		$	20,507,413		$	20,861,384		$	20,926,523		$	21,128,354
Loans								15,154,232			14,856,003			14,881,526			15,284,608			15,405,630
Allowance for loan losses								206,493			203,495			203,481			203,442			203,411
Goodwill								929,168			871,629			871,629			871,629			875,727
Mortgage servicing rights, net								55,829			48,342			66,620			67,931			69,282
Other intangible assets, net								44,770			40,953			42,614			44,613			46,893
Deposits								14,077,618			13,980,967			14,316,071			14,208,545			13,646,408
Wholesale funding								4,348,565			4,075,919			4,113,827			4,277,636			5,033,961
Stockholders’ equity								2,228,911			2,236,134			2,245,493			2,270,380			2,274,860
Stockholders’ equity / assets								10.69	%		10.90	%		10.76	%		10.85	%		10.77	%
Tangible equity / tangible assets (5)								6.31	%		6.75	%		6.67	%		6.77	%		6.69	%
Shares outstanding, end of period								126,910			127,497			128,747			130,216			132,283
Shares repurchased during period, including settlements								2,000			1,909			1,957			2,000			31
Average per share cost of shares repurchased during period							$	32.81		$	35.74		$	33.11		$	31.43		$	—
Year-to-date shares repurchased during period, including settlements								3,909			1,909			8,018			6,061			4,061
YTD average per share cost of shares repurchased during period							$	34.24		$	35.74		$	32.83		$	32.74		$	33.38
Selected trend information
Average full time equivalent employees								5,069			5,089			5,084			5,117			5,112
Trust assets under management, at market value							$	6,100,000		$	5,900,000		$	5,800,000		$	5,500,000		$	5,200,000
Mortgage loans originated for sale								455,928			338,802			374,427			388,914			359,361
Portfolio serviced for others								6,571,000			6,087,000			8,330,000			8,226,000			8,134,000
Mortgage servicing rights, net / Portfolio serviced for others								0.85	%		0.79	%		0.80	%		0.83	%		0.85	%

(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									Six months ended
	June 30,									June 30,
(in thousands)	2007			2006			% Change			2007			2006			% Change
Allowance for Loan Losses
Beginning balance	$	203,495		$	203,408			0.0	%	$	203,481		$	203,404			0.0	%
Balance related to acquisition		2,991			—			N/M			2,991			—			N/M
Provision for loan losses		5,193			3,686			40.9	%		10,275			8,151			26.1	%
Charge offs		(7,258	)		(7,423	)		(2.2	%)		(14,127	)		(13,485	)		4.8	%
Recoveries		2,072			3,740			(44.6	%)		3,873			5,341			(27.5	%)
Net charge offs		(5,186	)		(3,683	)		40.8	%		(10,254	)		(8,144	)		25.9	%
Ending Balance	$	206,493		$	203,411			1.5	%	$	206,493		$	203,411			1.5	%

Credit Quality

							Jun07 vs Mar07												Jun07 vs Jun06
	Jun 30, 2007			Mar 31, 2007			% Change			Dec 31, 2006			Sept 30, 2006			June 30, 2006			% Change
Nonaccrual loans	$	171,303		$	146,864			16.6	%	$	136,734		$	123,743		$	95,426			79.5	%
Loans 90 or more days past due and still accruing		8,446			6,131			37.8	%		5,725			4,826			7,591			11.3	%
Restructured loans		—			25			(100.0	%)		26			28			29			(100.0	%)
Total nonperforming loans		179,749			153,020			17.5	%		142,485			128,597			103,046			74.4	%
Other real estate owned		19,237			16,439			17.0	%		14,417			13,866			14,947			28.7	%
Total nonperforming assets		198,986			169,459			17.4	%		156,902			142,463			117,993			68.6	%
Provision for loan losses		5,193			5,082			2.2	%		7,068			3,837			3,686			40.9	%
Net charge offs		5,186			5,068			2.3	%		7,029			3,806			3,683			40.8	%
Allowance for loan losses / loans		1.36	%		1.37	%					1.37	%		1.33	%		1.32	%
Allowance for loan losses / nonperforming loans		114.88			132.99						142.81			158.20			197.40
Nonperforming loans / total loans		1.19			1.03						0.96			0.84			0.67
Nonperforming assets / total assets		0.95			0.83						0.75			0.68			0.56
Net charge offs / average loans (annualized)		0.14			0.14						0.18			0.10			0.10
Year-to-date net charge offs / average loans		0.14			0.14						0.12			0.10			0.11

Period End Loan Composition

					Jun07 vs Mar07									Jun07 vs Jun06
	Jun 30, 2007		Mar 31, 2007		% Change			Dec 31, 2006		Sept 30, 2006		June 30, 2006		% Change
Commercial, financial & agricultural	$	3,958,911	$	3,788,800		4.5	%	$	3,677,573	$	3,549,216	$	3,505,819		12.9	%
Real estate — construction		2,137,276		2,084,883		2.5	%		2,047,124		2,186,810		2,122,136		0.7	%
Commercial real estate		3,703,464		3,723,289		(0.5	%)		3,789,480		3,755,037		3,872,819		(4.4	%)
Lease financing		88,967		89,524		(0.6	%)		81,814		79,234		74,919		18.8	%
Commercial		9,888,618		9,686,496		2.1	%		9,595,991		9,570,297		9,575,693		3.3	%
Home equity (a)		2,144,357		2,042,284		5.0	%		2,164,758		2,166,312		2,151,858		(0.3	%)
Installment		865,474		869,719		(0.5	%)		915,747		940,139		945,123		(8.4	%)
Retail		3,009,831		2,912,003		3.4	%		3,080,505		3,106,451		3,096,981		(2.8	%)
Residential mortgage		2,255,783		2,257,504		(0.1	%)		2,205,030		2,607,860		2,732,956		(17.5	%)
Total loans	$	15,154,232	$	14,856,003		2.0	%	$	14,881,526	$	15,284,608	$	15,405,630		(1.6	%)

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

Period End Deposit Composition

					Jun07 vs Mar07									Jun07 vs Jun06
	Jun 30, 2007		Mar 31, 2007		% Change			Dec 31, 2006		Sept 30, 2006		June 30, 2006		% Change
Demand	$	2,466,130	$	2,425,248		1.7	%	$	2,756,222	$	2,534,686	$	2,276,463		8.3	%
Savings		966,673		903,738		7.0	%		890,380		959,650		1,031,993		(6.3	%)
Interest-bearing demand		1,900,227		1,805,658		5.2	%		1,875,879		1,712,833		1,975,364		(3.8	%)
Money market		3,564,539		3,880,744		(8.1	%)		3,822,928		3,959,719		3,434,288		3.8	%
Brokered CDs		751,900		650,084		15.7	%		637,575		630,637		518,354		45.1	%
Other time deposits		4,428,149		4,315,495		2.6	%		4,333,087		4,411,020		4,409,946		0.4	%
Total deposits	$	14,077,618	$	13,980,967		0.7	%	$	14,316,071	$	14,208,545	$	13,646,408		3.2	%
Customer Repo Sweeps (b)	$	900,964	$	945,019		(4.7	%)	$	875,099	$	895,766	$	885,503		1.7	%
(b) Included within short-term borrowings.

N/M — Not meaningful.

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

	Six months ended June 30, 2007							Six months ended June 30, 2006
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	9,697,338	$	360,976		7.51	%	$	9,515,862	$	342,716		7.17	%
Residential mortgage		2,345,020		71,331		6.10			2,844,536		81,658		5.75
Retail		2,978,486		120,172		8.10			3,061,917		116,414		7.63
Total loans		15,020,844		552,479		7.41			15,422,315		540,788		7.00
Investments and other		3,499,134		92,942		5.31			4,202,640		104,222		4.96
Total earning assets		18,519,978		645,421		7.01			19,624,955		645,010		6.56
Other assets, net		1,946,474							1,942,754
Total assets	$	20,466,452						$	21,567,709
Interest-bearing liabilities:
Savings deposits	$	905,620	$	1,911		0.43	%	$	1,059,838	$	1,923		0.37	%
Interest-bearing demand deposits		1,816,668		17,684		1.96			2,264,235		19,378		1.73
Money market deposits		3,771,053		71,265		3.81			2,988,491		49,648		3.35
Time deposits, excluding Brokered CDs		4,325,023		97,001		4.52			4,381,112		82,569		3.80
Total interest-bearing deposits, excluding Brokered CDs		10,818,364		187,861		3.50			10,693,676		153,518		2.89
Brokered CDs		464,192		12,218		5.31			526,534		12,436		4.76
Total interest-bearing deposits		11,282,556		200,079		3.58			11,220,210		165,954		2.98
Wholesale funding		4,472,630		115,537		5.20			5,739,755		130,618		4.53
Total interest-bearing liabilities		15,755,186		315,616		4.04			16,959,965		296,572		3.51
Noninterest-bearing demand deposits		2,348,259							2,207,579
Other liabilities		121,547							103,163
Stockholders’ equity		2,241,460							2,297,002
Total liabilities and stockholders’ equity	$	20,466,452						$	21,567,709
Net interest income and rate spread (1)			$	329,805		2.97	%			$	348,438		3.05	%
Net interest margin (1)						3.57	%						3.53	%
Taxable equivalent adjustment			$	13,284						$	13,170

	Three months ended June 30, 2007							Three months ended June 30, 2006
	Average		Interest		Average			Average		Interest		Average
	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	9,811,861	$	182,536		7.46	%	$	9,605,422	$	178,429		7.35	%
Residential mortgage		2,333,225		35,948		6.17			2,811,824		40,712		5.79
Retail		2,937,764		59,351		8.09			3,098,543		60,064		7.76
Total loans		15,082,850		277,835		7.38			15,515,789		279,205		7.15
Investments and other		3,522,174		46,562		5.29			3,826,839		48,595		5.08
Total earning assets		18,605,024		324,397		6.99			19,342,628		327,800		6.74
Other assets, net		1,953,779							1,924,164
Total assets	$	20,558,803						$	21,266,792
Interest-bearing liabilities:
Savings deposits	$	928,207	$	1,110		0.48	%	$	1,054,523	$	980		0.37	%
Interest-bearing demand deposits		1,833,762		9,097		1.99			2,145,715		8,986		1.68
Money market deposits		3,723,407		35,172		3.79			3,174,513		28,296		3.58
Time deposits, excluding Brokered CDs		4,339,520		49,407		4.57			4,411,156		43,121		3.92
Total interest-bearing deposits, excluding Brokered CDs		10,824,896		94,786		3.51			10,785,907		81,383		3.03
Brokered CDs		527,510		6,994		5.32			540,746		6,693		4.96
Total interest-bearing deposits		11,352,406		101,780		3.60			11,326,653		88,076		3.12
Wholesale funding		4,482,437		58,418		5.23			5,391,108		64,822		4.76
Total interest-bearing liabilities		15,834,843		160,198		4.06			16,717,761		152,898		3.65
Noninterest-bearing demand deposits		2,350,466							2,208,072
Other liabilities		119,622							86,026
Stockholders’ equity		2,253,872							2,254,933
Total liabilities and stockholders’ equity	$	20,558,803						$	21,266,792
Net interest income and rate spread (1)			$	164,199		2.93	%			$	174,902		3.09	%
Net interest margin (1)						3.53	%						3.59	%
Taxable equivalent adjustment			$	6,724						$	6,503

(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.