Associated Banc-Corp (ASB) 8-K Associated earns 56 cents per share in third quarter 2007

	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 56 cents per share in third quarter 2007

• Net income of $71.7 million

• Continued growth in core fee-based income

• Net interest margin of 3.62% for third quarter

• Commercial nonperforming loans down 21% from second quarter

GREEN BAY, Wis. —October 18, 2007 — Associated Banc-Corp (NASDAQ: ASBC) earned $71.7 million, or $.56 per share, in the third quarter of 2007. Comparatively, net income was $75.8 million ($.59 per share) for the second quarter of 2007 and $76.9 million ($.58 per share) for the third quarter of 2006.

Return on average assets (ROA) was 1.38 percent, 1.48 percent and 1.46 percent for the third quarter of 2007, the second quarter of 2007 and the third quarter of 2006, respectively. The return on average equity (ROE) for the same quarters was 12.69 percent, 13.49 percent and 13.36 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 22.42 percent in the third quarter of 2007, versus 23.14 percent in the second quarter of 2007 and 22.32 percent in the third quarter of 2006.

Net income was $221.0 million, or $1.72 per share, for the nine months ended Sept. 30, 2007, compared to net income of $242.1 million, or $1.81 per share, for the comparable nine-month period of 2006, which was positively impacted by $.09 per share related to tax matters.

Loans were $15.2 billion at Sept. 30, 2007. Loan growth since June 30 came from home equity (up $86 million) and real estate construction loans (up $78 million), offset partly by declines in all other commercial loans (down $63 million combined) and in residential mortgages (down $82 million). On average, loans were $15.2 billion for the third quarter of 2007, up $101 million or 3 percent annualized over the second quarter of 2007.

Deposits were $14.2 billion at Sept. 30, 2007, up $81 million or 2 percent annualized since June 30, after removing $42 million in branch deposits sold during the third quarter. On average, deposits were $13.9 billion, up $238 million or 7 percent annualized over the second quarter of 2007.

Net interest income for the third quarter of 2007 was $163.1 million, compared to $157.5 million for the second quarter of 2007 and $168.2 million for the third quarter of 2006. The net interest margin for the quarter was 3.62 percent, up 9 basis points over the second quarter of 2007 and down 1 basis point from the margin for the third quarter of last year. Contributing to the net interest margin for third quarter was the growth in average deposits as a percentage of total funding, as well as an improved interest rate spread.

Net charge offs to average loans were 38 basis points for the quarter and 22 basis points for the nine months ended Sept. 30, 2007. The third quarter’s net charge offs of $14.7 million included a $6 million charge off related to an individual commercial credit. Commercial nonperforming loans decreased by $29 million or 21 percent from June 30, 2007. Total nonperforming loans declined to 0.99 percent of total loans compared to 1.19 percent of loans at June 30.

“We have been working diligently to lower the amount of commercial nonperforming and other criticized loans to reduce future exposure,” Associated Chairman and CEO Paul S. Beideman said. “Our efforts have

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been very successful in the third quarter, and our intention is to continue such efforts. Consumer losses and foreclosure metrics remain relatively stable to 2006 levels. We believe that our losses going forward will stabilize around our historical loan loss levels. After our provision of $8.7 million this quarter we remain adequately reserved at 1.32 percent of total loans.”

Noninterest income was $84.9 million for the third quarter of 2007, down $6.6 million compared to the second quarter of 2007, largely the result of $6.7 million lower net mortgage banking income and $2.4 million lower investment and asset sale gains, partially offset by $2.5 million growth in all other noninterest income categories combined. Core fee-based revenues for the quarter were $65.4 million, up $1.7 million or 3 percent higher than second quarter and up 14 percent over the third quarter of 2006. On a year-to-date basis, core fee-based revenue was $189.3 million, up $16.8 million or 10 percent over the nine-month period last year, with solid growth in deposit service charges (12 percent), trust service fees (16 percent), card-based and other fees (13 percent) and a 1 percent increase in retail commissions.

Net mortgage banking income was $3.0 million, compared to $9.7 million for the second quarter of 2007. The quarterly results were affected in part by lower secondary mortgage production (down 23 percent) and by lower valuation reserve recoveries (that is, a $0.1 million recovery in third quarter versus a $3.8 million recovery in second quarter). On a year-to-date basis, excluding valuation reserve changes and bulk servicing gains, core net mortgage banking income was $11.0 million for the first nine months of 2007, 9 percent higher than the $10.0 million for the first nine-month period of 2006.

Noninterest expenses remain controlled, with an efficiency ratio of 53.44 percent and 52.97 percent for the three and nine months ending Sept. 30, 2007, respectively. Noninterest expense was up $1.4 million or 1 percent over the second quarter of 2007. On a year-to-date basis, noninterest expense was up $23.0 million or 6 percent, with a 5 percent increase in personnel costs and a 7 percent increase in non-personnel costs, both impacted by the integration of First National Bank of Hudson.

During the third quarter, Associated paid a dividend of 31 cents per share, up 7 percent from the third-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 800-459-5609. The number for international callers is 973-321-1024. Participants should ask the operator for the Associated Banc-Corp third quarter 2007 earnings call, or for call ID number 9288058. A replay of the call will be available starting at 6 p.m. CDT on Oct. 18 through Nov. 8, 2007, by calling 877-519-4471 (toll-free) domestically or 973-341-3080 internationally. The call ID number, 9288058, 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 approximately 300 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.

Six pages of tables follow.

— 30 —

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Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp

	September 30,			December 31,			Sept07 vs Dec06			September 30,			Sept07 vs Sept06
(in thousands)	2007			2006			% Change			2006			% Change
Assets
Cash and due from banks	$	358,662		$	458,344			(21.7	%)	$	367,406			(2.4	%)
Interest-bearing deposits in other financial institutions		10,809			10,505			2.9	%		27,627			(60.9	%)
Federal funds sold and securities purchased under agreements to resell		11,441			13,187			(13.2	%)		34,752			(67.1	%)
Investment securities available for sale, at fair value		3,521,307			3,436,621			2.5	%		3,436,774			2.5	%
Loans held for sale		62,632			370,758			(83.1	%)		87,330			(28.3	%)
Loans		15,174,758			14,881,526			2.0	%		15,284,608			(0.7	%)
Allowance for loan losses		(200,560	)		(203,481	)		(1.4	%)		(203,442	)		(1.4	%)
Loans, net		14,974,198			14,678,045			2.0	%		15,081,166			(0.7	%)
Premises and equipment, net		197,114			196,007			0.6	%		196,201			0.5	%
Goodwill		929,168			871,629			6.6	%		871,629			6.6	%
Other intangible assets, net		96,427			109,234			(11.7	%)		112,544			(14.3	%)
Other assets		778,249			717,054			8.5	%		711,094			9.4	%
Total assets	$	20,940,007		$	20,861,384			0.4	%	$	20,926,523			0.1	%
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,407,026		$	2,756,222			(12.7	%)	$	2,534,686			(5.0	%)
Interest-bearing deposits, excluding Brokered CDs		10,950,921			10,922,274			0.3	%		11,043,222			(0.8	%)
Brokered CDs		800,422			637,575			25.5	%		630,637			26.9	%
Total deposits		14,158,369			14,316,071			(1.1	%)		14,208,545			(0.4	%)
Short-term borrowings		2,349,525			2,042,685			15.0	%		2,004,982			17.2	%
Long-term funding		1,933,871			2,071,142			(6.6	%)		2,272,654			(14.9	%)
Accrued expenses and other liabilities		207,060			185,993			11.3	%		169,962			21.8	%
Total liabilities		18,648,825			18,615,891			0.2	%		18,656,143			(0.0	%)
Stockholders’ Equity
Preferred stock		—			—						—
Common stock		1,278			1,304			(2.0	%)		1,324			(3.5	%)
Surplus		1,039,027			1,120,934			(7.3	%)		1,183,169			(12.2	%)
Retained earnings		1,281,352			1,189,658			7.7	%		1,156,869			10.8	%
Accumulated other comprehensive loss		(11,979	)		(16,453	)		(27.2	%)		(6,122	)		95.7	%
Treasury stock, at cost		(18,496	)		(49,950	)		(63.0	%)		(64,860	)		(71.5	%)
Total stockholders’ equity		2,291,182			2,245,493			2.0	%		2,270,380			0.9	%
Total liabilities and stockholders’ equity	$	20,940,007		$	20,861,384			0.4	%	$	20,926,523			0.1	%

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

	For The Three Months Ended							For The Nine Months Ended
	September 30,				Quarter			September 30,				Year to date
(in thousands, except per share amounts)	2007		2006		% Change			2007		2006		% Change
Interest Income
Interest and fees on loans	$	283,330	$	284,397		(0.4	%)	$	834,272	$	823,985		1.2	%
Interest and dividends on investment securities and deposits in other financial institutions
Taxable		31,140		30,225		3.0	%		92,249		101,990		(9.6	%)
Tax-exempt		9,924		9,691		2.4	%		29,503		29,640		(0.5	%)
Interest on federal funds sold and securities purchased under agreements to resell		214		260		(17.7	%)		721		798		(9.6	%)
Total interest income		324,608		324,573		0.0	%		956,745		956,413		0.0	%
Interest Expense
Interest on deposits		104,596		99,242		5.4	%		304,675		265,196		14.9	%
Interest on short-term borrowings		31,548		30,450		3.6	%		102,154		97,820		4.4	%
Interest on long-term funding		25,391		26,664		(4.8	%)		70,322		89,912		(21.8	%)
Total interest expense		161,535		156,356		3.3	%		477,151		452,928		5.3	%
Net Interest Income		163,073		168,217		(3.1	%)		479,594		503,485		(4.7	%)
Provision for loan losses		8,733		3,837		127.6	%		19,008		11,988		58.6	%
Net interest income after provision for loan losses		154,340		164,380		(6.1	%)		460,586		491,497		(6.3	%)
Noninterest Income
Trust service fees		10,886		9,339		16.6	%		31,906		27,543		15.8	%
Service charges on deposit accounts		26,609		23,438		13.5	%		75,176		67,379		11.6	%
Card-based and other nondeposit fees		12,436		10,461		18.9	%		35,470		31,394		13.0	%
Retail commissions		15,476		14,360		7.8	%		46,728		46,203		1.1	%
Mortgage banking, net		3,006		2,833		6.1	%		22,252		13,066		70.3	%
Bank owned life insurance income		4,650		4,390		5.9	%		13,179		11,053		19.2	%
Asset sale gains, net		2,220		89		N/M			4,545		213		N/M
Investment securities gains, net		1,879		1,164		61.4	%		8,989		5,158		74.3	%
Other		7,758		6,911		12.3	%		20,863		18,957		10.1	%
Total noninterest income		84,920		72,985		16.4	%		259,108		220,966		17.3	%
Noninterest Expense
Personnel expense		76,617		71,321		7.4	%		226,941		215,116		5.5	%
Occupancy		11,967		10,442		14.6	%		34,875		32,854		6.2	%
Equipment		4,440		4,355		2.0	%		13,088		13,166		(0.6	%)
Data processing		7,991		7,668		4.2	%		23,501		23,419		0.4	%
Business development and advertising		4,830		4,142		16.6	%		14,303		12,492		14.5	%
Other intangible amortization		1,979		2,280		(13.2	%)		5,358		6,904		(22.4	%)
Other		26,185		23,478		11.5	%		76,723		67,866		13.1	%
Total noninterest expense		134,009		123,686		8.3	%		394,789		371,817		6.2	%
Income before income taxes		105,251		113,679		(7.4	%)		324,905		340,646		(4.6	%)
Income tax expense		33,510		36,791		(8.9	%)		103,944		98,502		5.5	%
Net Income	$	71,741	$	76,888		(6.7	%)	$	220,961	$	242,144		(8.7	%)
Earnings Per Share:
Basic	$	0.57	$	0.58		(1.7	%)	$	1.73	$	1.82		(4.9	%)
Diluted	$	0.56	$	0.58		(3.4	%)	$	1.72	$	1.81		(5.0	%)
Average Shares Outstanding:
Basic		126,958		131,520		(3.5	%)		127,513		132,951		(4.1	%)
Diluted		127,847		132,591		(3.6	%)		128,638		134,119		(4.1	%)

N/M — Not meaningful.

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

(in thousands, except per share amounts)	3Q07		2Q07		1Q07		4Q06			3Q06
Interest Income
Interest and fees on loans	$	283,330	$	276,981	$	273,961	$	282,918		$	284,397
Interest and dividends on investment securities and deposits in other financial institutions
Taxable		31,140		30,583		30,526		29,962			30,225
Tax-exempt		9,924		9,785		9,794		9,794			9,691
Interest on federal funds sold and securities purchased under agreements to resell		214		324		183		292			260
Total interest income		324,608		317,673		314,464		322,966			324,573
Interest Expense
Interest on deposits		104,596		101,780		98,299		98,757			99,242
Interest on short-term borrowings		31,548		35,423		35,183		31,971			30,450
Interest on long-term funding		25,391		22,995		21,936		26,174			26,664
Total interest expense		161,535		160,198		155,418		156,902			156,356
Net Interest Income		163,073		157,475		159,046		166,064			168,217
Provision for loan losses		8,733		5,193		5,082		7,068			3,837
Net interest income after provision for loan losses		154,340		152,282		153,964		158,996			164,380
Noninterest Income
Trust service fees		10,886		10,711		10,309		9,941			9,339
Service charges on deposit accounts		26,609		25,545		23,022		24,214			23,438
Card-based and other nondeposit fees		12,436		11,711		11,323		11,267			10,461
Retail commissions		15,476		15,773		15,479		15,053			14,360
Mortgage banking, net		3,006		9,696		9,550		1,735			2,833
Bank owned life insurance income		4,650		4,365		4,164		5,102			4,390
Asset sale gains, net		2,220		442		1,883		91			89
Investment securities gains (losses), net		1,879		6,075		1,035		(436	)		1,164
Other		7,758		7,170		5,935		7,568			6,911
Total noninterest income		84,920		91,488		82,700		74,535			72,985
Noninterest Expense
Personnel expense		76,617		76,277		74,047		68,315			71,321
Occupancy		11,967		11,321		11,587		10,971			10,442
Equipment		4,440		4,254		4,394		4,300			4,355
Data processing		7,991		7,832		7,678		8,033			7,668
Business development and advertising		4,830		5,068		4,405		4,365			4,142
Other intangible amortization		1,979		1,718		1,661		1,999			2,280
Other		26,185		26,174		24,364		26,415			23,478
Total noninterest expense		134,009		132,644		128,136		124,398			123,686
Income before income taxes		105,251		111,126		108,528		109,133			113,679
Income tax expense		33,510		35,301		35,133		34,632			36,791
Net Income	$	71,741	$	75,825	$	73,395	$	74,501		$	76,888
Earnings Per Share:
Basic	$	0.57	$	0.59	$	0.57	$	0.58		$	0.58
Diluted	$	0.56	$	0.59	$	0.57	$	0.57		$	0.58
Average Shares Outstanding:
Basic		126,958		127,606		127,988		129,202			131,520
Diluted		127,847		128,750		129,299		130,366			132,591

Selected Quarterly Information
Associated Banc-Corp

(in thousands, except per share & full time equivalent employee data)	YTD 2007			YTD 2006			3rd Qtr 2007			2nd Qtr 2007			1st Qtr 2007			4th Qtr 2006			3rd Qtr 2006
Summary of Operations
Net interest income	$	479,594		$	503,485		$	163,073		$	157,475		$	159,046		$	166,064		$	168,217
Provision for loan losses		19,008			11,988			8,733			5,193			5,082			7,068			3,837
Asset sale gains, net		4,545			213			2,220			442			1,883			91			89
Investment securities gains (losses), net		8,989			5,158			1,879			6,075			1,035			(436	)		1,164
Noninterest income (excluding securities & asset gains)		245,574			215,595			80,821			84,971			79,782			74,880			71,732
Noninterest expense		394,789			371,817			134,009			132,644			128,136			124,398			123,686
Income before income taxes		324,905			340,646			105,251			111,126			108,528			109,133			113,679
Income taxes		103,944			98,502			33,510			35,301			35,133			34,632			36,791
Net income		220,961			242,144			71,741			75,825			73,395			74,501			76,888
Taxable equivalent adjustment		20,140			19,665			6,856			6,724			6,560			6,568			6,495
Per Common Share Data (1)
Net income:
Basic	$	1.73		$	1.82		$	0.57		$	0.59		$	0.57		$	0.58		$	0.58
Diluted		1.72			1.81			0.56			0.59			0.57			0.57			0.58
Dividends		0.91			0.85			0.31			0.31			0.29			0.29			0.29
Market Value:
High	$	35.43		$	34.83		$	33.05		$	33.49		$	35.43		$	35.13		$	32.58
Low		26.86			30.27			26.86			32.14			33.16			32.13			30.27
Close		29.63			32.50			29.63			32.70			33.60			34.88			32.50
Book value		18.04			17.44			18.04			17.56			17.54			17.44			17.44
Performance Ratios (annualized)
Earning assets yield		7.03	%		6.67	%		7.05	%		6.99	%		7.03	%		6.95	%		6.89	%
Interest-bearing liabilities rate		4.03			3.62			4.02			4.06			4.02			3.93			3.84
Net interest margin		3.59			3.56			3.62			3.53			3.62			3.64			3.63
Return on average assets		1.44			1.52			1.38			1.48			1.46			1.43			1.46
Return on average equity		13.18			14.12			12.69			13.49			13.35			13.19			13.36
Return on tangible average equity (2)		22.73			23.64			22.42			23.14			22.63			22.31			22.32
Efficiency ratio (3)		52.97			50.33			53.44			53.23			52.22			50.26			50.19
Effective tax rate		31.99			28.92			31.84			31.77			32.37			31.73			32.36
Dividend payout ratio (4)		52.60			46.70			54.39			52.54			50.88			50.00			50.00
Average Balances
Assets	$	20,537,911		$	21,339,661		$	20,678,498		$	20,558,803		$	20,373,075		$	20,635,203		$	20,891,001
Earning assets		18,575,919			19,403,761			18,685,978			18,605,024			18,433,986			18,713,784			18,968,584
Interest-bearing liabilities		15,818,037			16,660,455			15,941,683			15,834,843			15,674,645			15,765,774			16,070,975
Loans		15,075,639			15,416,219			15,183,444			15,082,850			14,958,148			15,233,207			15,404,223
Deposits		13,735,336			13,581,666			13,940,970			13,702,872			13,557,958			13,748,444			13,884,404
Wholesale funding		4,443,557			5,368,157			4,386,354			4,482,437			4,462,713			4,547,042			4,636,853
Stockholders’ equity		2,241,866			2,292,597			2,242,665			2,253,872			2,228,909			2,240,143			2,283,933
Stockholders’ equity / assets		10.92	%		10.74	%		10.85	%		10.96	%		10.94	%		10.86	%		10.93	%
At Period End
Assets							$	20,940,007		$	20,849,140		$	20,507,413		$	20,861,384		$	20,926,523
Loans								15,174,758			15,154,232			14,856,003			14,881,526			15,284,608
Allowance for loan losses								200,560			206,493			203,495			203,481			203,442
Goodwill								929,168			929,168			871,629			871,629			871,629
Mortgage servicing rights, net								53,636			55,829			48,342			66,620			67,931
Other intangible assets, net								42,791			44,770			40,953			42,614			44,613
Deposits								14,158,369			14,077,618			13,980,967			14,316,071			14,208,545
Wholesale funding								4,283,396			4,348,565			4,075,919			4,113,827			4,277,636
Stockholders’ equity								2,291,182			2,228,911			2,236,134			2,245,493			2,270,380
Stockholders’ equity / assets								10.94	%		10.69	%		10.90	%		10.76	%		10.85	%
Tangible equity / tangible assets (5)								6.61	%		6.31	%		6.75	%		6.67	%		6.77	%
Shares outstanding, end of period								127,035			126,910			127,497			128,747			130,216
Shares repurchased during period, including settlements								11			2,000			1,909			1,957			2,000
Average per share cost of shares repurchased during period							$	—		$	32.81		$	35.74		$	33.11		$	31.43
YTD shares repurchased during period, including settlements								3,920			3,909			1,909			8,018			6,061
YTD average per share cost of shares repurchased during period							$	34.15		$	34.24		$	35.74		$	32.83		$	32.74
Selected trend information
Average full time equivalent employees								5,200			5,069			5,089			5,084			5,117
Trust assets under management, at market value							$	6,200,000		$	6,100,000		$	5,900,000		$	5,800,000		$	5,500,000
Mortgage loans originated for sale during period								353,233			455,928			338,802			374,427			388,914
Mortgage portfolio serviced for others								6,297,000			6,571,000			6,087,000			8,330,000			8,226,000
Mortgage servicing rights, net / Portfolio serviced for others								0.85	%		0.85	%		0.79	%		0.80	%		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									Nine months ended
	September 30,									September 30,
(in thousands)	2007			2006			% Change			2007			2006			% Change
Allowance for Loan Losses
Beginning balance	$	206,493		$	203,411			1.5	%	$	203,481		$	203,404			0.0	%
Balance related to acquisition		—			—			N/M			2,991			—			N/M
Provision for loan losses		8,733			3,837			127.6	%		19,008			11,988			58.6	%
Charge offs		(15,966	)		(6,448	)		147.6	%		(30,093	)		(19,933	)		51.0	%
Recoveries		1,300			2,642			(50.8	%)		5,173			7,983			(35.2	%)
Net charge offs		(14,666	)		(3,806	)		285.3	%		(24,920	)		(11,950	)		108.5	%
Ending Balance	$	200,560		$	203,442			(1.4	%)	$	200,560		$	203,442			(1.4	%)

Credit Quality

							Sept07 vs Jun07												Sept07 vs Sept06
	Sept 30, 2007			Jun 30, 2007			% Change			Mar 31, 2007			Dec 31, 2006			Sept 30, 2006			% Change
Nonaccrual loans	$	142,509		$	171,303			(16.8	%)	$	146,864		$	136,734		$	123,743			15.2	%
Loans 90 or more days past due and still accruing		8,163			8,446			(3.4	%)		6,131			5,725			4,826			69.1	%
Restructured loans		—			—			N/M			25			26			28			(100.0	%)
Total nonperforming loans		150,672			179,749			(16.2	%)		153,020			142,485			128,597			17.2	%
Other real estate owned		20,866			19,237			8.5	%		16,439			14,417			13,866			50.5	%
Total nonperforming assets	$	171,538		$	198,986			(13.8	%)	$	169,459		$	156,902		$	142,463			20.4	%
Provision for loan losses		8,733			5,193			68.2	%		5,082			7,068			3,837			127.6	%
Net charge offs		14,666			5,186			182.8	%		5,068			7,029			3,806			285.3	%
Allowance for loan losses / loans		1.32	%		1.36	%					1.37	%		1.37	%		1.33	%
Allowance for loan losses / nonperforming loans		133.11			114.88						132.99			142.81			158.20
Nonperforming loans / total loans		0.99			1.19						1.03			0.96			0.84
Nonperforming assets / total assets		0.82			0.95						0.83			0.75			0.68
Net charge offs / average loans (annualized)		0.38			0.14						0.14			0.18			0.10
Year-to-date net charge offs / average loans		0.22			0.14						0.14			0.12			0.10

Period End Loan Composition

					Sept07 vs Jun07									Sept07 vs Sept06
	Sept 30, 2007		Jun 30, 2007		% Change			Mar 31, 2007		Dec 31, 2006		Sept 30, 2006		% Change
Commercial, financial & agricultural	$	3,935,976	$	3,958,911		(0.6	%)	$	3,788,800	$	3,677,573	$	3,549,216		10.9	%
Commercial real estate		3,656,937		3,703,464		(1.3	%)		3,723,289		3,789,480		3,755,037		(2.6	%)
Real estate — construction		2,215,264		2,137,276		3.6	%		2,084,883		2,047,124		2,186,810		1.3	%
Lease financing		95,644		88,967		7.5	%		89,524		81,814		79,234		20.7	%
Commercial		9,903,821		9,888,618		0.2	%		9,686,496		9,595,991		9,570,297		3.5	%
Home equity (a)		2,230,640		2,144,357		4.0	%		2,042,284		2,164,758		2,166,312		3.0	%
Installment		866,185		865,474		0.1	%		869,719		915,747		940,139		(7.9	%)
Retail		3,096,825		3,009,831		2.9	%		2,912,003		3,080,505		3,106,451		(0.3	%)
Residential mortgage		2,174,112		2,255,783		(3.6	%)		2,257,504		2,205,030		2,607,860		(16.6	%)
Total loans	$	15,174,758	$	15,154,232		0.1	%	$	14,856,003	$	14,881,526	$	15,284,608		(0.7	%)

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

Period End Deposit Composition

					Sept07 vs Jun07									Sept07 vs Sept06
	Sept 30, 2007		Jun 30, 2007		% Change			Mar 31, 2007		Dec 31, 2006		Sept 30, 2006		% Change
Demand	$	2,407,026	$	2,466,130		(2.4	%)	$	2,425,248	$	2,756,222	$	2,534,686		(5.0	%)
Savings		919,891		966,673		(4.8	%)		903,738		890,380		959,650		(4.1	%)
Interest-bearing demand		1,881,235		1,900,227		(1.0	%)		1,805,658		1,875,879		1,712,833		9.8	%
Money market		3,770,487		3,564,539		5.8	%		3,880,744		3,822,928		3,959,719		(4.8	%)
Brokered CDs		800,422		751,900		6.5	%		650,084		637,575		630,637		26.9	%
Other time deposits		4,379,308		4,428,149		(1.1	%)		4,315,495		4,333,087		4,411,020		(0.7	%)
Total deposits	$	14,158,369	$	14,077,618		0.6	%	$	13,980,967	$	14,316,071	$	14,208,545		(0.4	%)
Customer Repo Sweeps (b)	$	874,737	$	900,964		(2.9	%)	$	945,019	$	875,099	$	895,766		(2.3	%)

(b) Included within short-term borrowings.

N/M — Not meaningful.

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

	Nine months ended Sept 30, 2007							Nine months ended Sept 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	$	9,748,956	$	547,923		7.51	%	$	9,534,532	$	525,319		7.27	%
Residential mortgage		2,321,792		106,845		6.14			2,804,961		122,006		5.80
Retail		3,004,891		181,942		8.08			3,076,726		178,541		7.74
Total loans		15,075,639		836,710		7.42			15,416,219		825,866		7.09
Investments and other		3,500,280		140,175		5.34			3,987,542		150,212		5.02
Total earning assets		18,575,919		976,885		7.03			19,403,761		976,078		6.67
Other assets, net		1,961,992							1,935,900
Total assets	$	20,537,911						$	21,339,661
Interest-bearing liabilities:
Savings deposits	$	917,983	$	3,236		0.47	%	$	1,037,542	$	2,921		0.38	%
Interest-bearing demand deposits		1,853,573		27,232		1.96			2,087,670		26,950		1.73
Money market deposits		3,745,304		106,177		3.79			3,188,616		84,086		3.53
Time deposits, excluding Brokered CDs		4,348,130		147,756		4.54			4,398,820		129,618		3.94
Total interest-bearing deposits, excluding Brokered CDs		10,864,990		284,401		3.50			10,712,648		243,575		3.04
Brokered CDs		509,490		20,274		5.32			579,650		21,621		4.99
Total interest-bearing deposits		11,374,480		304,675		3.58			11,292,298		265,196		3.14
Wholesale funding		4,443,557		172,476		5.19			5,368,157		187,732		4.62
Total interest-bearing liabilities		15,818,037		477,151		4.03			16,660,455		452,928		3.62
Noninterest-bearing demand deposits		2,360,856							2,289,368
Other liabilities		117,152							97,241
Stockholders’ equity		2,241,866							2,292,597
Total liabilities and stockholders’ equity	$	20,537,911						$	21,339,661
Net interest income and rate spread (1)			$	499,734		3.00	%			$	523,150		3.05	%
Net interest margin (1)						3.59	%						3.56	%
Taxable equivalent adjustment			$	20,140						$	19,665

	Three months ended Sept 30, 2007							Three months ended Sept 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	$	9,850,510	$	186,947		7.53	%	$	9,571,264	$	182,603		7.47	%
Residential mortgage		2,276,094		35,514		6.22			2,727,101		40,348		5.89
Retail		3,056,840		61,770		8.05			3,105,858		62,127		7.96
Total loans		15,183,444		284,231		7.44			15,404,223		285,078		7.29
Investments and other		3,502,534		47,233		5.39			3,564,361		45,990		5.16
Total earning assets		18,685,978		331,464		7.05			18,968,584		331,068		6.89
Other assets, net		1,992,520							1,922,417
Total assets	$	20,678,498						$	20,891,001
Interest-bearing liabilities:
Savings deposits	$	942,305	$	1,324		0.56	%	$	993,677	$	998		0.40	%
Interest-bearing demand deposits		1,926,181		9,547		1.97			1,740,296		7,571		1.73
Money market deposits		3,694,646		34,914		3.75			3,582,339		34,438		3.81
Time deposits, excluding Brokered CDs		4,393,590		50,755		4.58			4,433,660		47,049		4.21
Total interest-bearing deposits, excluding Brokered CDs		10,956,722		96,540		3.50			10,749,972		90,056		3.32
Brokered CDs		598,607		8,056		5.34			684,150		9,186		5.33
Total interest-bearing deposits		11,555,329		104,596		3.59			11,434,122		99,242		3.44
Wholesale funding		4,386,354		56,939		5.16			4,636,853		57,114		4.83
Total interest-bearing liabilities		15,941,683		161,535		4.02			16,070,975		156,356		3.84
Noninterest-bearing demand deposits		2,385,641							2,450,282
Other liabilities		108,509							85,811
Stockholders’ equity		2,242,665							2,283,933
Total liabilities and stockholders’ equity	$	20,678,498						$	20,891,001
Net interest income and rate spread (1)			$	169,929		3.03	%			$	174,712		3.05	%
Net interest margin (1)						3.62	%						3.63	%
Taxable equivalent adjustment			$	6,856						$	6,495

(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.