8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)     October 19, 2006                    

Associated Banc-Corp

(Exact name of registrant as specified in its chapter)

Wisconsin	001-31343	39-1098068
(State or other jurisdiction of incorporation)	(Commission	(IRS Employer Identification No.)
	File Number)

1200 Hansen Road, Green Bay, Wisconsin	54304
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code     920-491-7000                    

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 19, 2006, Associated Banc-Corp announced its earnings for the third quarter of 2006. A copy of the registrant’s press release containing this information is being furnished as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits.

The following exhibit is furnished as part of this Report on Form 8-K:
99.1	Press release of the registrant dated October 19, 2006, containing financial information for its third quarter ended September 30, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Associated Banc-Corp
	(Registrant)
Date: October 19, 2006	By: /s/ Brian R. Bodager
	Brian R. Bodager
	Chief Administrative Officer,
	General Counsel & Corporate Secretary

ASSOCIATED BANC-CORP

Exhibit Index to Current Report on Form 8-K

Exhibit
Number
99.1	Press release of the registrant dated October 19, 2006 containing financial information for its third quarter ended September 30, 2006.

EX-99.1

News Release

CONTACTS:
Investors:
          Joe Selner, Chief Financial Officer

          920-491-7120
Media:
          Cindy Moon-Mogush, Corporate Communications

          920-431-8034

     Associated earns 58 cents per diluted share in 3^rd quarter of 2006

· 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 3^rd quarter; another anticipated for 4^th quarter

     GREEN BAY, Wis. — October 19, 2006 — 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.

- more -

ASBC 3Q ’06, add one

     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.

- more -

ASBC 3Q ’06, add two

     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.

- 30 -

Six pages of tables follow.

Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
	September 30,			December 31						September 30
(in thousands)	2006			2005			% Change			2005			% Change
Assets
Cash and due from banks	$	367,406		$	460,230			(20.2	%)	$	386,151			(4.9	%)
Interest-bearing deposits in other financial institutions		27,627			14,254			93.8	%		14,598			89.3	%
Federal funds sold and securities purchased under agreements to resell		34,752			17,811			95.1	%		103,481			(66.4	%)
Investment securities available for sale, at fair value		3,436,774			4,711,605			(27.1	%)		4,708,730			(27.0	%)
Loans held for sale		87,330			57,710			51.3	%		98,473			(11.3	%)
Loans		15,284,608			15,206,464			0.5	%		14,107,137			8.3	%
Allowance for loan losses		(203,442	)		(203,404	)		0.0	%		(190,080	)		7.0	%
Loans, net		15,081,166			15,003,060			0.5	%		13,917,057			8.4	%
Premises and equipment		196,201			206,153			(4.8	%)		174,086			12.7	%
Goodwill		871,629			877,680			(0.7	%)		679,993			28.2	%
Other intangible assets, net		112,544			120,358			(6.5	%)		115,692			(2.7	%)
Other assets		711,094			631,221			12.7	%		543,470			30.8	%
Total assets	$	20,926,523		$	22,100,082			(5.3	%)	$	20,741,731			0.9	%
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,534,686		$	2,504,926			1.2	%	$	2,256,774			12.3	%
Interest-bearing deposits, excluding Brokered CDs		11,043,222			10,538,856			4.8	%		9,516,792			16.0	%
Brokered CDs		630,637			529,307			19.1	%		407,459			54.8	%
Total deposits		14,208,545			13,573,089			4.7	%		12,181,025			16.6	%
Short-term borrowings		2,004,982			2,666,307			(24.8	%)		2,778,993			(27.9	%)
Long-term funding		2,272,654			3,348,476			(32.1	%)		3,545,458			(35.9	%)
Accrued expenses and other liabilities		169,962			187,232			(9.2	%)		173,690			(2.1	%)
Total liabilities		18,656,143			19,775,104			(5.7	%)		18,679,166			(0.1	%)
Stockholders’ Equity
Preferred stock		—			—						—
Common stock		1,324			1,357			(2.4	%)		1,281			3.4	%
Surplus		1,183,169			1,301,004			(9.1	%)		1,064,833			11.1	%
Retained earnings		1,156,869			1,029,247			12.4	%		978,489			18.2	%
Accumulated other comprehensive income (loss)		(6,122	)		(3,938	)		55.5	%		21,776			(128.1	%)
Deferred compensation		—			(2,081	)		(100.0	%)		(3,814	)		(100.0	%)
Treasury stock, at cost		(64,860	)		(611	)		N/M			—			N/M
Total stockholders’ equity		2,270,380			2,324,978			(2.3	%)		2,062,565			10.1	%
Total liabilities and stockholders’ equity	$	20,926,523		$	22,100,082			(5.3	%)	$	20,741,731			0.9	%

N/M = Not Meaningful.

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
	For The Three Months Ended,							For The Nine Months Ended,
	September 30,							September 30,
(in thousands, except per share amounts)	2006		2005		% Change			2006		2005		% Change
Interest Income
Interest and fees on loans	$	284,397	$	223,202		27.4	%	$	823,985	$	636,931		29.4	%
Interest and dividends on investment securities and deposits in other financial institutions
Taxable		30,225		40,050		(24.5	%)		101,990		122,918		(17.0	%)
Tax-exempt		9,691		9,755		(0.7	%)		29,640		28,985		2.3	%
Interest on federal funds sold and securities purchased under agreements to resell		260		384		(32.3	%)		798		648		23.1	%
Total interest income		324,573		273,391		18.7	%		956,413		789,482		21.1	%
Interest Expense
Interest on deposits		99,242		53,598		85.2	%		265,196		146,118		81.5	%
Interest on short-term borrowings		30,450		23,628		28.9	%		97,820		62,528		56.4	%
Interest on long-term funding		26,664		32,087		(16.9	%)		89,912		84,176		6.8	%
Total interest expense		156,356		109,313		43.0	%		452,928		292,822		54.7	%
Net Interest Income		168,217		164,078		2.5	%		503,485		496,660		1.4	%
Provision for loan losses		3,837		3,345		14.7	%		11,988		9,343		28.3	%
Net interest income after provision for loan losses		164,380		160,733		2.3	%		491,497		487,317		0.9	%
Noninterest Income
Trust service fees		9,339		8,667		7.8	%		27,543		25,962		6.1	%
Service charges on deposit accounts		23,438		22,830		2.7	%		67,379		63,710		5.8	%
Mortgage banking, net		2,833		11,969		(76.3	%)		13,066		24,229		(46.1	%)
Card-based and other nondeposit fees		10,461		9,505		10.1	%		31,394		27,406		14.6	%
Retail commissions		14,360		12,905		11.3	%		46,203		42,980		7.5	%
Bank owned life insurance income		4,390		2,441		79.8	%		11,053		6,920		59.7	%
Asset sale gains, net		89		942		N/M			213		1,179		N/M
Investment securities gains, net		1,164		1,446		N/M			5,158		2,937		N/M
Other		6,911		6,260		10.4	%		18,957		14,719		28.8	%
Total noninterest income		72,985		76,965		(5.2	%)		220,966		210,042		5.2	%
Noninterest Expense
Personnel expense		71,321		66,403		7.4	%		215,116		206,322		4.3	%
Occupancy		10,442		9,412		10.9	%		32,854		28,674		14.6	%
Equipment		4,355		4,199		3.7	%		13,166		12,431		5.9	%
Data processing		7,190		7,129		0.9	%		21,537		20,150		6.9	%
Business development and advertising		4,142		4,570		(9.4	%)		12,492		12,662		(1.3	%)
Stationery and supplies		1,787		1,599		11.8	%		5,345		5,087		5.1	%
Other intangible amortization		2,280		1,903		19.8	%		6,904		6,189		11.6	%
Other		22,169		22,133		0.2	%		64,403		63,409		1.6	%
Total noninterest expense		123,686		117,348		5.4	%		371,817		354,924		4.8	%
Income before income taxes		113,679		120,350		(5.5	%)		340,646		342,435		(0.5	%)
Income tax expense		36,791		39,315		(6.4	%)		98,502		109,915		(10.4	%)
Net Income	$	76,888	$	81,035		(5.1	%)	$	242,144	$	232,520		4.1	%
Earnings Per Share:
Basic	$	0.58	$	0.63		(7.9	%)	$	1.82	$	1.80		1.1	%
Diluted	$	0.58	$	0.63		(7.9	%)	$	1.81	$	1.79		1.1	%
Average Shares Outstanding:
Basic		131,520		127,875		2.9	%		132,951		128,825		3.2	%
Diluted		132,591		129,346		2.5	%		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			1st Qtr 2006			4th Qtr 2005			3rd Qtr 2005
Summary of Operations
Net interest income		503,485			496,660			168,217			168,399			166,869			175,595			164,078
Provision for loan losses		11,988			9,343			3,837			3,686			4,465			3,676			3,345
Asset sale gains (losses), net		213			1,179			89			354			(230	)		2,766			942
Investment securities gains, net		5,158			2,937			1,164			1,538			2,456			1,179			1,446
Noninterest income (excluding securities & asset gains)		215,595			205,926			71,732			75,316			68,547			77,099			74,577
Noninterest expense		371,817			354,924			123,686			124,660			123,471			125,539			117,348
Income before income taxes		340,646			342,435			113,679			117,261			109,706			127,424			120,350
Income taxes		98,502			109,915			36,791			33,712			27,999			39,783			39,315
Net income		242,144			232,520			76,888			83,549			81,707			87,641			81,035
Taxable equivalent adjustment		19,665			18,743			6,495			6,503			6,667			6,766			6,347
Per Common Share Data (1)
Net income:
Basic	$	1.82		$	1.80		$	0.58		$	0.63		$	0.60		$	0.65		$	0.63
Diluted		1.81			1.79			0.58			0.63			0.60			0.64			0.63
Dividends		0.85			0.79			0.29			0.29			0.27			0.27			0.27
Market Value:
High	$	34.83		$	34.74		$	32.58		$	34.45		$	34.83		$	33.23		$	34.74
Low		30.27			30.11			30.27			30.69			32.75			29.09			30.29
Close		32.50			30.48			32.50			31.53			33.98			32.55			30.48
Book value		17.44			16.12			17.44			17.20			16.98			17.15			16.12
Performance Ratios (annualized)
Earning assets yield		6.67	%		5.68	%		6.89	%		6.74	%		6.38	%		6.12	%		5.83	%
Interest-bearing liabilities rate		3.62			2.40			3.84			3.65			3.37			2.98			2.66
Net interest margin		3.56			3.62			3.63			3.59			3.48			3.59			3.56
Return on average assets		1.52			1.51			1.46			1.58			1.52			1.58			1.56
Return on average equity		14.12			15.33			13.36			14.86			14.16			14.99			15.85
Return on tangible average equity (2)		23.64			23.78			22.32			25.18			23.48			22.70			24.55
Efficiency ratio (3)		50.33			49.20			50.19			49.82			51.00			48.38			47.90
Effective tax rate		28.92			32.10			32.36			28.75			25.52			31.22			32.67
Dividend payout ratio (4)		46.70			43.89			50.00			46.03			45.00			41.54			42.86
Average Balances
Assets	$	21,339,661		$	20,550,636		$	20,891,001		$	21,266,792		$	21,871,969		$	22,022,165		$	20,607,901
Earning assets		19,403,761			18,878,583			18,968,584			19,342,628			19,910,420			20,080,758			18,960,035
Interest-bearing liabilities		16,660,455			16,181,956			16,070,975			16,717,761			17,204,860			17,090,134			16,198,492
Loans		15,416,219			14,075,913			15,404,223			15,515,789			15,327,803			15,154,225			14,163,827
Deposits		13,581,666			12,186,667			13,884,404			13,534,725			13,319,664			13,282,910			12,133,719
Wholesale funding		5,368,157			6,183,220			4,636,853			5,391,108			6,092,275			6,280,793			6,307,705
Stockholders’ equity		2,292,597			2,027,672			2,283,933			2,254,933			2,339,539			2,320,134			2,027,785
Stockholders’ equity / assets		10.74	%		9.87	%		10.93	%		10.60	%		10.70	%		10.54	%		9.84	%
At Period End
Assets							$	20,926,523		$	21,128,354		$	21,518,860		$	22,100,082		$	20,741,731
Loans								15,284,608			15,405,630			15,539,187			15,206,464			14,107,137
Allowance for loan losses								203,442			203,411			203,408			203,404			190,080
Goodwill								871,629			875,727			875,727			877,680			679,993
Mortgage servicing rights, net								67,931			69,282			68,116			68,841			78,688
Other intangible assets, net								44,613			46,893			49,174			51,517			37,004
Deposits								14,208,545			13,646,408			13,616,870			13,573,089			12,181,025
Wholesale funding								4,277,636			5,033,961			5,496,039			6,014,783			6,324,451
Stockholders’ equity								2,270,380			2,274,860			2,244,695			2,324,978			2,062,565
Stockholders’ equity / assets								10.85	%		10.77	%		10.43	%		10.52	%		9.94	%
Tangible equity / tangible assets (5)								6.77	%		6.69	%		6.41	%		6.59	%		6.72	%
Shares outstanding, end of period								130,216			132,283			132,167			135,602			127,985
Shares repurchased during period								2,000			31			4,030			974			—
Average per share cost of shares repurchased during period							$	31.43		$	—		$	33.63		$	30.82		$	—
Year-to-date shares repurchased during period								6,061			4,061			4,030			3,496			2,522
YTD average per share cost of shares repurchased during period							$	32.74		$	33.38		$	33.63		$	32.43		$	33.05
Selected trend information
Average full time equivalent employees								5,117			5,112			5,147			5,113			4,815
Trust assets under management, at market value							$	5,500,000		$	5,200,000		$	5,200,000		$	5,000,000		$	4,900,000
Mortgage loans originated for sale								388,914			359,361			246,724			356,280			498,343
Portfolio serviced for others								8,226,000			8,134,000			8,050,000			8,028,000			9,492,000
Mortgage servicing rights, net / Portfolio serviced for others								0.83	%		0.85	%		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									Nine months ended
	September 30,									September 30,
(in thousands)	2006			2005			% Change			2006			2005			% Change
Allowance for Loan Losses
Beginning balance	$	203,411		$	190,024			7.0	%	$	203,404		$	189,762			7.2	%
Provision for loan losses		3,837			3,345			14.7	%		11,988			9,343			28.3	%
Charge offs		(6,448	)		(5,268	)		22.4	%		(19,933	)		(16,601	)		20.1	%
Recoveries		2,642			1,979			33.5	%		7,983			7,576			5.4	%
Net charge offs		(3,806	)		(3,289	)		15.7	%		(11,950	)		(9,025	)		32.4	%
Ending Balance	$	203,442		$	190,080			7.0	%	$	203,442		$	190,080			7.0	%

Credit Quality
							3Q06 vs 2Q06												3Q06 vs 3Q05
	Sept 30, 2006			June 30, 2006			% Change			March 31, 2006			Dec 31, 2005			Sept 30, 2005			% Change
Nonaccrual loans	$	123,743		$	95,426			29.7	%	$	102,824		$	95,313		$	107,298			15.3	%
Loans 90 or more days past due and still accruing		4,826			7,591			(36.4	%)		7,068			3,270			3,354			43.9	%
Restructured loans		28			29			(3.4	%)		31			32			33			(15.2	%)
Total nonperforming loans		128,597			103,046			24.8	%		109,923			98,615			110,685			16.2	%
Other real estate owned		13,866			14,947			(7.2	%)		11,676			11,336			10,017			38.4	%
Total nonperforming assets		142,463			117,993			20.7	%		121,599			109,951			120,702			18.0	%
Provision for loan losses		3,837			3,686			4.1	%		4,465			3,676			3,345			14.7	%
Net charge offs		3,806			3,683			3.3	%		4,461			3,635			3,289			15.7	%
Allowance for loan losses / loans		1.33	%		1.32	%					1.31	%		1.34	%		1.35	%
Allowance for loan losses / nonperforming loans		158.20			197.40						185.05			206.26			171.73
Nonperforming loans / total loans		0.84			0.67						0.71			0.65			0.78
Nonperforming assets / total assets		0.68			0.56						0.57			0.50			0.58
Net charge offs / average loans (annualized)		0.10			0.10						0.12			0.10			0.09
Year-to-date net charge offs / average loans		0.10			0.11						0.12			0.09			0.09

Period End Loan Composition					3Q06 vs 2Q06									3Q06 vs 3Q05
	Sept 30, 2006		June 30, 2006		% Change			Mar 31, 2006		Dec 31, 2005		Sept 30, 2005		% Change
Commercial, financial & agricultural	$	3,549,216	$	3,505,819		1.2	%	$	3,571,835	$	3,417,343	$	3,213,656		10.4	%
Real estate — construction		2,186,810		2,122,136		3.0	%		1,981,473		1,783,267		1,519,681		43.9	%
Commercial real estate		3,755,037		3,872,819		(3.0	%)		4,024,260		4,064,327		3,648,169		2.9	%
Lease financing		79,234		74,919		5.8	%		62,600		61,315		57,270		38.4	%
Commercial		9,570,297		9,575,693		(0.1	%)		9,640,168		9,326,252		8,438,776		13.4	%
Home equity (a)		2,166,312		2,151,858		0.7	%		2,121,601		2,025,055		1,878,436		15.3	%
Installment		940,139		945,123		(0.5	%)		957,877		1,003,938		1,024,356		(8.2	%)
Retail		3,106,451		3,096,981		0.3	%		3,079,478		3,028,993		2,902,792		7.0	%
Residential mortgage		2,607,860		2,732,956		(4.6	%)		2,819,541		2,851,219		2,765,569		(5.7	%)
Total loans	$	15,284,608	$	15,405,630		(0.8	%)	$	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									3Q06 vs 3Q05
	Sept 30, 2006		June 30, 2006		% Change			Mar 31, 2006		Dec 31, 2005		Sept 30, 2005		% Change
Demand	$	2,534,686	$	2,276,463		11.3	%	$	2,319,075	$	2,504,926	$	2,256,774		12.3	%
Savings		959,650		1,031,993		(7.0	%)		1,074,938		1,079,851		1,074,234		(10.7	%)
Interest-bearing demand		1,712,833		1,975,364		(13.3	%)		2,347,104		2,549,782		2,252,711		(24.0	%)
Money market		3,959,719		3,434,288		15.3	%		2,863,174		2,629,933		2,240,606		76.7	%
Brokered CDs		630,637		518,354		21.7	%		567,660		529,307		407,459		54.8	%
Other time deposits		4,411,020		4,409,946		0.0	%		4,444,919		4,279,290		3,949,241		11.7	%
Total deposits	$	14,208,545	$	13,646,408		4.1	%	$	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							Nine months ended September 30, 2005
	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	$	9,534,532	$	525,319		7.27	%	$	8,356,785	$	375,704		5.93	%
Residential mortgage		2,804,961		122,006		5.80			2,865,319		119,614		5.56
Retail		3,076,726		178,541		7.74			2,853,809		142,965		6.68
Total loans		15,416,219		825,866		7.09			14,075,913		638,283		6.01
Investments and other		3,987,542		150,212		5.02			4,802,670		169,942		4.72
Total earning assets		19,403,761		976,078		6.67			18,878,583		808,225		5.68
Other assets, net		1,935,900							1,672,053
Total assets	$	21,339,661						$	20,550,636
Interest-bearing liabilities:
Savings deposits	$	1,037,542	$	2,921		0.38	%	$	1,116,871	$	3,077		0.37	%
Interest-bearing demand deposits		2,087,670		26,950		1.73			2,380,397		19,530		1.10
Money market deposits		3,188,616		84,086		3.53			2,140,763		28,505		1.78
Time deposits, excluding Brokered CDs		4,398,820		129,618		3.94			3,996,324		86,545		2.90
Total interest-bearing deposits, excluding Brokered CDs		10,712,648		243,575		3.04			9,634,355		137,657		1.91
Brokered CDs		579,650		21,621		4.99			364,381		8,461		3.10
Total interest-bearing deposits		11,292,298		265,196		3.14			9,998,736		146,118		1.95
Wholesale funding		5,368,157		187,732		4.62			6,183,220		146,704		3.13
Total interest-bearing liabilities		16,660,455		452,928		3.62			16,181,956		292,822		2.40
Noninterest-bearing demand		2,289,368							2,187,931
Other liabilities		97,241							153,077
Stockholders’ equity		2,292,597							2,027,672
Total liabilities and stockholders’ equity	$	21,339,661						$	20,550,636
Net interest income and rate spread (1)			$	523,150		3.05	%			$	515,403		3.28	%
Net interest margin (1)						3.56	%						3.62	%
Taxable equivalent adjustment			$	19,665						$	18,743

	Three months ended September 30, 2006							Three months ended September 30, 2005
	Average		Interest		Average			Average		Interest		Average
	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	9,571,264	$	182,603		7.47	%	$	8,411,678	$	134,503		6.26	%
Residential mortgage		2,727,101		40,348		5.89			2,880,685		40,253		5.56
Retail		3,105,858		62,127		7.96			2,871,464		48,940		6.78
Total loans		15,404,223		285,078		7.29			14,163,827		223,696		6.22
Investments and other		3,564,361		45,990		5.16			4,796,208		56,042		4.67
Total earning assets		18,968,584		331,068		6.89			18,960,035		279,738		5.83
Other assets, net		1,922,417							1,647,866
Total assets	$	20,891,001						$	20,607,901
Interest-bearing liabilities:
Savings deposits	$	993,677	$	998		0.40	%	$	1,097,955	$	1,024		0.37	%
Interest-bearing demand deposits		1,740,296		7,571		1.73			2,193,600		6,107		1.10
Money market deposits		3,582,339		34,438		3.81			2,198,538		11,822		2.13
Time deposits, excluding Brokered CDs		4,433,660		47,049		4.21			3,913,389		30,395		3.08
Total interest-bearing deposits, excluding Brokered CDs		10,749,972		90,056		3.32			9,403,482		49,348		2.08
Brokered CDs		684,150		9,186		5.33			487,305		4,250		3.46
Total interest-bearing deposits		11,434,122		99,242		3.44			9,890,787		53,598		2.15
Wholesale funding		4,636,853		57,114		4.83			6,307,705		55,715		3.47
Total interest-bearing liabilities		16,070,975		156,356		3.84			16,198,492		109,313		2.66
Noninterest-bearing demand		2,450,282							2,242,932
Other liabilities		85,811							138,692
Stockholders’ equity		2,283,933							2,027,785
Total liabilities and stockholders’ equity	$	20,891,001						$	20,607,901
Net interest income and rate spread (1)			$	174,712		3.05	%			$	170,425		3.17	%
Net interest margin (1)						3.63	%						3.56	%
Taxable equivalent adjustment			$	6,495						$	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.