Associated Earns 52 Cents Per Share in First Quarter of 2008

By: Associated Banc-Corp via Business Wire News Releases

April 17, 2008 at 14:26 PM EDT

Associated Banc-Corp (NASDAQ: ASBC):

Net income of $66.5 million, 3% higher than fourth quarter 2007
Loans up 7 percent annualized over year end
Net interest margin of 3.58%, down 4 bp from fourth quarter
Provision for loan losses of $23 million, with net charge offs of $16 million
Tangible capital ratio of 6.75%, up from 6.59% at year end 2007

Associated Banc-Corp (NASDAQ: ASBC) reported net income of $66.5 million, or $.52 per share, for the first quarter of 2008. Comparatively, net income was $64.8 million ($.51 per share) for the fourth quarter of 2007 and $73.4 million ($.57 per share) for the first quarter of 2007. Book value per share rose to $18.71 at March 31, 2008, up 7 percent over a year ago.

First quarter 2008 results included several notable items. The provision for loan losses was $23 million, $7 million higher than net charge offs. The reserve for unfunded commitments was increased by $2 million with a charge to other expense. Noninterest revenue included a $5 million gain recorded in other income related to our interest in the Visa, Inc. initial public offering, and a $3 million loss related to other-than-temporary impairment on certain equity securities recorded in net investment securities gains. Noninterest revenue was also impacted by recent accounting standards related to fair value measurement, which at adoption in the first quarter increased mortgage banking income by $2 million and reduced other income by $0.5 million related to derivatives. Tax expense was impacted by the resolution of certain tax matters and changes in estimated exposure of uncertain tax positions, partially offset by the increase in valuation allowance related to certain deferred tax assets, resulting in a $4 million net reduction of income tax expense.

Net interest income was $165 million for the first quarter, up from $164 million and $159 million for the fourth and first quarters of 2007, respectively. The net interest margin was 3.58 percent, compared to 3.62 percent for both the fourth and first quarters of 2007. “We are pleased with our revenue dynamics as we continue to generate loan growth, coupled with improved deposit flows,” said Associated Chairman and CEO Paul S. Beideman. “This has contributed to the improvement in our tangible capital ratio to 6.75 percent from 6.59 percent.”

On average, loans were $15.7 billion for the first quarter of 2008, up $0.4 billion or 11 percent annualized over the fourth quarter of 2007, led by 14 percent annualized growth in commercial loans and 6 percent annualized growth in home equity loans. At March 31, 2008, loans were $15.8 billion, up $0.3 billion (7 percent annualized) since year end 2007.

Deposits, on average, were $13.6 billion for the first quarter of 2008, down $0.1 billion compared to the fourth quarter of 2007, attributed primarily to seasonal first quarter declines in commercial deposits and lower time deposits, offset in part by increased money market deposits. Since year end, deposits were down $0.1 billion to $13.9 billion at March 31, 2008.

At March 31, 2008, the allowance for loan losses represented 1.32 percent of total loans, compared to 1.29 percent at year end 2007 and 1.37 percent a year ago. Since year end, nonperforming loans rose $45 million to $207 million at March 31, 2008, with commercial nonperforming loans up $41 million to $150 million and total consumer nonperforming loans up $4 million to $57 million. The rise in nonperforming loans includes four individual credits totaling approximately $49 million.

Core fee-based revenues were $61.3 million, up 2 percent over $60.1 million for first quarter 2007, led by a 3 percent increase in deposit service charges and a 4 percent increase in retail commissions. Total noninterest expense was $136.3 million for the first quarter of 2008, compared to $140.1 million for the fourth quarter of 2007.

During the first quarter, Associated paid a dividend of $.31 cents per share, up 7 percent over the first quarter of last year.

Associated will host a conference call for investors and analysts at 3 p.m. CT today. The toll-free dial-in number for the live call is 800-762-8779. The number for international callers is 480-248-5081. Participants should ask the operator for the Associated Banc-Corp first quarter 2008 earnings call, or for call ID number 3859529. A replay of the call will be available starting at 6 p.m. CT on April 17 through May 8, 2008, by calling 800-406-7325 (toll-free) domestically or 303-590-3030 internationally. The call ID number, 3859529, is required to access the replay.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $22 billion. Associated has approximately 300 banking offices serving 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.



Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
	March 31,		December 31,		Mar08 vs Dec07		March 31,		Mar08 vs Mar07
(in thousands)	2008		2007		% Change		2007		% Change
Assets
Cash and due from banks	$ 477,971		$ 553,031		(13.6	%)	$ 315,157		51.7	%
Interest-bearing deposits in other
financial institutions	25,216		11,671		116.1	%	33,280		(24.2	%)
Federal funds sold and securities purchased
under agreements to resell	20,250		22,447		(9.8	%)	4,698		331.0	%
Investment securities available for sale, at fair value	3,616,280		3,543,019		2.1	%	3,467,732		4.3	%
Loans held for sale	123,652		94,441		30.9	%	92,303		34.0	%
Loans	15,785,283		15,516,252		1.7	%	14,856,003		6.3	%
Allowance for loan losses	(207,602	)	(200,570	)	3.5	%	(203,495	)	2.0	%
Loans, net	15,577,681		15,315,682		1.7	%	14,652,508		6.3	%
Premises and equipment, net	193,774		197,446		(1.9	%)	190,309		1.8	%
Goodwill	929,168		929,168		0.0	%	871,629		6.6	%
Other intangible assets, net	90,477		92,220		(1.9	%)	89,295		1.3	%
Other assets	849,284		832,958		2.0	%	790,502		7.4	%
Total assets	$ 21,903,753		$ 21,592,083		1.4	%	$ 20,507,413		6.8	%

Liabilities and Stockholders' Equity
Noninterest-bearing deposits	$ 2,516,265		$ 2,661,078		(5.4	%)	$ 2,425,248		3.8	%
Interest-bearing deposits, excluding Brokered CDs	10,634,511		10,903,198		(2.5	%)	10,905,635		(2.5	%)
Brokered CDs	731,398		409,637		78.5	%	650,084		12.5	%
Total deposits	13,882,174		13,973,913		(0.7	%)	13,980,967		(0.7	%)
Short-term borrowings	3,852,524		3,226,787		19.4	%	2,332,816		65.1	%
Long-term funding	1,536,399		1,864,771		(17.6	%)	1,743,103		(11.9	%)
Accrued expenses and other liabilities	250,238		196,907		27.1	%	214,393		16.7	%
Total liabilities	19,521,335		19,262,378		1.3	%	18,271,279		6.8	%
Stockholders' Equity
Preferred stock	-		-				-
Common stock	1,278		1,278		0.0	%	1,284		(0.5	%)
Surplus	1,043,839		1,040,694		0.3	%	1,055,914		(1.1	%)
Retained earnings	1,318,573		1,305,136		1.0	%	1,215,551		8.5	%
Accumulated other comprehensive income (loss)	20,131		(2,498	)	(905.9	%)	(11,564	)	(274.1	%)
Treasury stock, at cost	(1,403	)	(14,905	)	(90.6	%)	(25,051	)	(94.4	%)
Total stockholders' equity	2,382,418		2,329,705		2.3	%	2,236,134		6.5	%
Total liabilities and stockholders' equity	$ 21,903,753		$ 21,592,083		1.4	%	$ 20,507,413		6.8	%



Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
	For The Three Months Ended
	March 31,			Quarter
(in thousands, except per share amounts)	2008		2007	% Change
Interest Income
Interest and fees on loans	$ 255,053		$ 273,961	(6.9	%)
Interest and dividends on investment securities
and deposits in other financial institutions
Taxable	31,352		30,526	2.7	%
Tax-exempt	10,259		9,794	4.7	%
Interest on federal funds sold and securities
purchased under agreements to resell	206		183	12.6	%
Total interest income	296,870		314,464	(5.6	%)
Interest Expense
Interest on deposits	81,506		98,299	(17.1	%)
Interest on short-term borrowings	28,173		35,183	(19.9	%)
Interest on long-term funding	22,074		21,936	0.6	%
Total interest expense	131,753		155,418	(15.2	%)
Net Interest Income	165,117		159,046	3.8	%
Provision for loan losses	23,002		5,082	352.6	%
Net interest income after provision for
loan losses	142,115		153,964	(7.7	%)
Noninterest Income
Trust service fees	10,074		10,309	(2.3	%)
Service charges on deposit accounts	23,684		23,022	2.9	%
Card-based and other nondeposit fees	11,425		11,323	0.9	%
Retail commissions	16,115		15,479	4.1	%
Mortgage banking, net	6,945		9,550	(27.3	%)
Bank owned life insurance income	4,861		4,164	16.7	%
Asset sale gains (losses), net	(456	)	1,883	(124.2	%)
Investment securities gains (losses), net	(2,940	)	1,035	(384.1	%)
Other	12,920		5,935	117.7	%
Total noninterest income	82,628		82,700	(0.1	%)
Noninterest Expense
Personnel expense	75,643		74,047	2.2	%
Occupancy	13,264		11,587	14.5	%
Equipment	4,597		4,394	4.6	%
Data processing	7,121		7,678	(7.3	%)
Business development and advertising	5,041		4,405	14.4	%
Other intangible amortization	1,569		1,661	(5.5	%)
Other	29,077		24,364	19.3	%
Total noninterest expense	136,312		128,136	6.4	%
Income before income taxes	88,431		108,528	(18.5	%)
Income tax expense	21,966		35,133	(37.5	%)
Net Income	$ 66,465		$ 73,395	(9.4	%)

Earnings Per Share:
Basic	$ 0.52		$ 0.57	(8.8	%)
Diluted	$ 0.52		$ 0.57	(8.8	%)
Average Shares Outstanding:
Basic	127,298		127,988	(0.5	%)
Diluted	127,825		129,299	(1.1	%)



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

(in thousands, except per share amounts)	1Q08	4Q07	3Q07	2Q07	1Q07
Interest Income
Interest and fees on loans	$ 255,053	$ 277,647	$ 283,330	$ 276,981	$ 273,961
Interest and dividends on investment securities
and deposits in other financial institutions
Taxable	31,352	30,712	31,140	30,583	30,526
Tax-exempt	10,259	10,394	9,924	9,785	9,794
Interest on federal funds sold and securities
purchased under agreements to resell	206	214	214	324	183
Total interest income	296,870	318,967	324,608	317,673	314,464
Interest Expense
Interest on deposits	81,506	98,678	104,596	101,780	98,299
Interest on short-term borrowings	28,173	32,470	31,548	35,423	35,183
Interest on long-term funding	22,074	23,600	25,391	22,995	21,936
Total interest expense	131,753	154,748	161,535	160,198	155,418
Net Interest Income	165,117	164,219	163,073	157,475	159,046
Provision for loan losses	23,002	15,501	8,733	5,193	5,082
Net interest income after provision for
loan losses	142,115	148,718	154,340	152,282	153,964
Noninterest Income
Trust service fees	10,074	10,723	10,886	10,711	10,309
Service charges on deposit accounts	23,684	25,866	26,609	25,545	23,022
Card-based and other nondeposit fees	11,425	12,088	12,436	11,711	11,323
Retail commissions	16,115	14,917	15,476	15,773	15,479
Mortgage banking, net	6,945	498	3,006	9,696	9,550
Bank owned life insurance income	4,861	4,240	4,650	4,365	4,164
Asset sale gains (losses), net	(456)	11,062	2,220	442	1,883
Investment securities gains (losses), net	(2,940)	(815)	1,879	6,075	1,035
Other	12,920	7,094	7,758	7,170	5,935
Total noninterest income	82,628	85,673	84,920	91,488	82,700
Noninterest Expense
Personnel expense	75,643	76,487	76,617	76,277	74,047
Occupancy	13,264	11,784	11,967	11,321	11,587
Equipment	4,597	4,820	4,440	4,254	4,394
Data processing	7,121	8,189	7,991	7,832	7,678
Business development and advertising	5,041	5,482	4,830	5,068	4,405
Other intangible amortization	1,569	1,758	1,979	1,718	1,661
Other	29,077	31,582	26,185	26,174	24,364
Total noninterest expense	136,312	140,102	134,009	132,644	128,136
Income before income taxes	88,431	94,289	105,251	111,126	108,528
Income tax expense	21,966	29,498	33,510	35,301	35,133
Net Income	$ 66,465	$ 64,791	$ 71,741	$ 75,825	$ 73,395

Earnings Per Share:
Basic	$ 0.52	$ 0.51	$ 0.57	$ 0.59	$ 0.57
Diluted	$ 0.52	$ 0.51	$ 0.56	$ 0.59	$ 0.57
Average Shares Outstanding:
Basic	127,298	127,095	126,958	127,606	127,988
Diluted	127,825	127,835	127,847	128,750	129,299


Selected Quarterly Information
Associated Banc-Corp


(in thousands, except per share and full time equivalent employee data)	1st Qtr 2008		4th Qtr 2007		3rd Qtr 2007		2nd Qtr 2007		1st Qtr 2007
Summary of Operations
Net interest income	$ 165,117		$ 164,219		$ 163,073		$ 157,475		$ 159,046
Provision for loan losses	23,002		15,501		8,733		5,193		5,082
Asset sale gains (losses), net	(456	)	11,062		2,220		442		1,883
Investment securities gains (losses), net	(2,940	)	(815	)	1,879		6,075		1,035
Noninterest income (excluding securities & asset gains)	86,024		75,426		80,821		84,971		79,782
Noninterest expense	136,312		140,102		134,009		132,644		128,136
Income before income taxes	88,431		94,289		105,251		111,126		108,528
Income taxes	21,966		29,498		33,510		35,301		35,133
Net income	66,465		64,791		71,741		75,825		73,395
Taxable equivalent adjustment	7,096		7,119		6,856		6,724		6,560

Per Common Share Data (1)
Net income:
Basic	$ 0.52		$ 0.51		$ 0.57		$ 0.59		$ 0.57
Diluted	0.52		0.51		0.56		0.59		0.57
Dividends	0.31		0.31		0.31		0.31		0.29
Market Value:
High	$ 28.86		$ 30.49		$ 33.05		$ 33.49		$ 35.43
Low	22.60		25.23		26.86		32.14		33.16
Close	26.63		27.09		29.63		32.70		33.60
Book value	18.71		18.32		18.04		17.56		17.54

Performance Ratios (annualized)
Earning assets yield	6.33	%	6.88	%	7.05	%	6.99	%	7.03	%
Interest-bearing liabilities rate	3.19		3.82		4.02		4.06		4.02
Net interest margin	3.58		3.62		3.62		3.53		3.62
Return on average assets	1.25		1.23		1.38		1.48		1.46
Return on average equity	11.34		11.23		12.69		13.49		13.35
Return on tangible average equity (2)	19.26		19.50		22.42		23.14		22.63
Efficiency ratio (3)	52.79		56.78		53.44		53.23		52.22
Effective tax rate	24.84		31.28		31.84		31.77		32.37
Dividend payout ratio (4)	59.62		60.78		54.39		52.54		50.88

Average Balances
Assets	$ 21,449,963		$ 20,935,023		$ 20,678,498		$ 20,558,803		$ 20,373,075
Earning assets	19,276,208		18,849,079		18,685,978		18,605,024		18,433,986
Interest-bearing liabilities	16,611,047		16,090,488		15,941,683		15,834,843		15,674,645
Loans	15,708,321		15,301,761		15,183,444		15,082,850		14,958,148
Deposits	13,643,559		13,760,991		13,940,970		13,702,872		13,557,958
Wholesale funding	5,293,797		4,750,471		4,386,354		4,482,437		4,462,713
Stockholders' equity	2,357,757		2,289,522		2,242,665		2,253,872		2,228,909
Stockholders' equity / assets	10.99	%	10.94	%	10.85	%	10.96	%	10.94	%


At Period End
Assets	$ 21,903,753		$ 21,592,083		$ 20,940,007		$ 20,849,140		$ 20,507,413
Loans	15,785,283		15,516,252		15,174,758		15,154,232		14,856,003
Allowance for loan losses	207,602		200,570		200,560		206,493		203,495
Goodwill	929,168		929,168		929,168		929,168		871,629
Mortgage servicing rights, net	51,013		51,187		53,636		55,829		48,342
Other intangible assets	39,464		41,033		42,791		44,770		40,953
Deposits	13,882,174		13,973,913		14,158,369		14,077,618		13,980,967
Wholesale funding	5,388,923		5,091,558		4,283,396		4,348,565		4,075,919
Stockholders' equity	2,382,418		2,329,705		2,291,182		2,228,911		2,236,134
Stockholders' equity / assets	10.88	%	10.79	%	10.94	%	10.69	%	10.90	%
Tangible equity / tangible assets (5)	6.75	%	6.59	%	6.61	%	6.31	%	6.75	%
Shares outstanding, end of period	127,365		127,160		127,035		126,910		127,497
Shares repurchased during period, including settlements (6)	-		-		11		2,000		1,909
Average per share cost of shares repurchased during period (6)	$ -		$ -		$ -		$ 32.81		$ 35.74
YTD shares repurchased during period, including settlements (6)	-		3,920		3,920		3,909		1,909
YTD average per share cost of shares repurchased during period (6)	$ -		$ 34.15		$ 34.15		$ 34.24		$ 35.74

Selected trend information
Average full time equivalent employees	5,093		5,095		5,200		5,069		5,089
Trust assets under management, at market value	$ 6,000,000		$ 6,100,000		$ 6,200,000		$ 6,100,000		$ 5,900,000
Mortgage loans originated for sale during period	516,780		333,331		353,233		455,928		338,802
Mortgage portfolio serviced for others	6,472,000		6,403,000		6,297,000		6,571,000		6,087,000
Mortgage servicing rights, net / Portfolio serviced for others	0.79	%	0.80	%	0.85	%	0.85	%	0.79	%

(1) Per share data adjusted retroactively for stock splits and stock dividends.
(2) Return on tangible average equity = Net income divided by average equity excluding average goodwill and 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 gain, net, and asset sales gains, net.
(4) Ratio is based upon basic earnings per share.
(5) Tangible equity to tangible assets = Stockholders' equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.
(6) Does not include shares repurchased for minimum tax withholding settlements on equity compensation.


Financial Summary and Comparison
Associated Banc-Corp	Three months ended
	March 31,
(in thousands)	2008		2007		% Change
Allowance for Loan Losses
Beginning balance	$ 200,570		$ 203,481		(1.4	%)
Provision for loan losses	23,002		5,082		352.6	%
Charge offs	(19,494	)	(6,869	)	183.8	%
Recoveries	3,524		1,801		95.7	%
Net charge offs	(15,970	)	(5,068	)	215.1	%
Ending Balance	$ 207,602		$ 203,495		2.0	%



Credit Quality					Mar08 vs Dec07								Mar08 vs Mar07
	Mar 31, 2008		Dec 31, 2007		% Change		Sept 30, 2007		Jun 30, 2007		Mar 31, 2007		% Change
Nonaccrual loans	$ 197,498		$ 152,528		29.5	%	$ 142,509		$ 171,303		$ 146,864		34.5	%
Loans 90 or more days past due and still accruing	9,959		10,118		(1.6	%)	8,163		8,446		6,131		62.4	%
Restructured loans	-		-		N/M		-		-		25		N/M
Total nonperforming loans	207,457		162,646		27.6	%	150,672		179,749		153,020		35.6	%
Other real estate owned (OREO)	26,798		26,489		1.2	%	20,866		19,237		16,439		63.0	%
Total nonperforming assets	$ 234,255		$ 189,135		23.9	%	$ 171,538		$ 198,986		$ 169,459		38.2	%
Provision for loan losses	23,002		15,501		48.4	%	8,733		5,193		5,082		352.6	%
Net charge offs	15,970		15,491		3.1	%	14,666		5,186		5,068		215.1	%

Allowance for loan losses / loans	1.32	%	1.29	%			1.32	%	1.36	%	1.37	%
Allowance for loan losses / nonperforming loans	100.07		123.32				133.11		114.88		132.99
Nonperforming loans / total loans	1.31		1.05				0.99		1.19		1.03
Nonperforming assets / total loans plus OREO	1.48		1.22				1.13		1.31		1.14
Nonperforming assets / total assets	1.07		0.88				0.82		0.95		0.83
Net charge offs / average loans (annualized)	0.41		0.40				0.38		0.14		0.14
Year-to-date net charge offs / average loans	0.41		0.27				0.22		0.14		0.14


Period End Loan Composition					Mar08 vs Dec07								Mar08 vs Mar07
	Mar 31, 2008		Dec 31, 2007		% Change		Sept 30, 2007		Jun 30, 2007		Mar 31, 2007		% Change
Commercial, financial & agricultural	$ 4,458,639		$ 4,281,091		4.1	%	$ 3,935,976		$ 3,958,911		$ 3,788,800		17.7	%
Commercial real estate	3,585,779		3,635,365		(1.4	%)	3,656,937		3,703,464		3,723,289		(3.7	%)
Real estate - construction	2,273,125		2,260,766		0.5	%	2,215,264		2,137,276		2,084,883		9.0	%
Lease financing	118,613		108,794		9.0	%	95,644		88,967		89,524		32.5	%
Commercial	10,436,156		10,286,016		1.5	%	9,903,821		9,888,618		9,686,496		7.7	%
Home equity (a)	2,387,223		2,269,122		5.2	%	2,230,640		2,144,357		2,042,284		16.9	%
Installment	842,564		841,136		0.2	%	866,185		865,474		869,719		(3.1	%)
Retail	3,229,787		3,110,258		3.8	%	3,096,825		3,009,831		2,912,003		10.9	%
Residential mortgage	2,119,340		2,119,978		(0.0	%)	2,174,112		2,255,783		2,257,504		(6.1	%)
Total loans	$ 15,785,283		$ 15,516,252		1.7	%	$ 15,174,758		$ 15,154,232		$ 14,856,003		6.3	%

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


Period End Deposit Composition					Mar08 vs Dec07								Mar08 vs Mar07
	Mar 31, 2008		Dec 31, 2007		% Change		Sept 30, 2007		Jun 30, 2007		Mar 31, 2007		% Change
Demand	$ 2,516,265		$ 2,661,078		(5.4	%)	$ 2,407,026		$ 2,466,130		$ 2,425,248		3.8	%
Savings	891,806		853,618		4.5	%	919,891		966,673		903,738		(1.3	%)
Interest-bearing demand	1,788,404		1,947,551		(8.2	%)	1,881,235		1,900,227		1,805,658		(1.0	%)
Money market	3,972,080		3,923,063		1.2	%	3,770,487		3,564,539		3,880,744		2.4	%
Brokered CDs	731,398		409,637		78.5	%	800,422		751,900		650,084		12.5	%
Other time deposits	3,982,221		4,178,966		(4.7	%)	4,379,308		4,428,149		4,315,495		(7.7	%)
Total deposits	$ 13,882,174		$ 13,973,913		(0.7	%)	$ 14,158,369		$ 14,077,618		$ 13,980,967		(0.7	%)

Customer Repo Sweeps (b)	$ 789,218		$ 844,414		(6.5	%)	$ 874,737		$ 900,964		$ 945,019		(16.5	%)

(b) Included within short-term borrowings.


N/M - Not meaningful.


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


	Three months ended March 31, 2008				Three months ended March 31, 2007
	Average	Interest	Average		Average	Interest	Average
	Balance	Income / Expense	Yield / Rate		Balance	Income / Expense	Yield / Rate

Earning assets:
Loans: (1) (2) (3)
Commercial	$ 10,323,280	$ 164,725	6.41	%	$ 9,581,543	$ 178,441	7.55	%
Residential mortgage	2,236,275	33,795	6.06		2,356,944	35,383	6.04
Retail	3,148,766	57,474	7.32		3,019,661	60,820	8.11
Total loans	15,708,321	255,994	6.55		14,958,148	274,644	7.43
Investments and other	3,567,887	47,972	5.38		3,475,838	46,380	5.34
Total earning assets	19,276,208	303,966	6.33		18,433,986	321,024	7.03
Other assets, net	2,173,755				1,939,089
Total assets	$ 21,449,963				$ 20,373,075

Interest-bearing liabilities:
Savings deposits	$ 860,836	$ 1,082	0.51	%	$ 882,783	$ 801	0.37	%
Interest-bearing demand deposits	1,808,187	5,991	1.33		1,799,385	8,587	1.94
Money market deposits	3,974,406	24,454	2.47		3,819,228	36,093	3.83
Time deposits, excluding Brokered CDs	4,043,280	43,741	4.35		4,310,365	47,594	4.48
Total interest-bearing deposits, excluding Brokered CDs	10,686,709	75,268	2.83		10,811,761	93,075	3.49
Brokered CDs	630,541	6,238	3.98		400,171	5,224	5.29
Total interest-bearing deposits	11,317,250	81,506	2.90		11,211,932	98,299	3.56
Wholesale funding	5,293,797	50,247	3.81		4,462,713	57,119	5.18
Total interest-bearing liabilities	16,611,047	131,753	3.19		15,674,645	155,418	4.02
Noninterest-bearing demand deposits	2,326,309				2,346,026
Other liabilities	154,850				123,495
Stockholders' equity	2,357,757				2,228,909
Total liabilities and stockholders' equity	$ 21,449,963				$ 20,373,075

Net interest income and rate spread (1)		$ 172,213	3.14	%		$ 165,606	3.01	%
Net interest margin (1)			3.58	%			3.62	%
Taxable equivalent adjustment		$ 7,096				$ 6,560


(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.

Contacts:

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

Associated Earns 52 Cents Per Share in First Quarter of 2008

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Associated Earns 52 Cents Per Share in First Quarter of 2008

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