Associated to purchase First National Bank of Hudson

Northwestern Financial Review, Feb 1-Feb 14, 2007

The First National Bank of Hudson is being sold to Associated Banc-Corp of Green Bay, Wis., it was announced on Jan. 17. First National Bank is headquartered in Hudson, although its charter is in Woodbury, an east-metro suburb of the Twin Cities in Minnesota. Terms of the acquisition were not disclosed.

John and Ruth Huss of St. Paul have owned the bank since 1977. "After nearly 30 years, the timing was right for us to find a buyer who would appreciate what we've built and carry on our community banking tradition," said John Huss. "I'm confident that our customers and employees will be well-served joining the Associated family."

The $390 million bank has offices in eight locations. First National Bank's presence in the rapidly growing corridor from Minneapolis-St. Paul to the eastern metro suburbs and into Wisconsin make it a natural fit for Associated, said Paul Beideman, chairman and CEO of the $21 billion Associated. "By welcoming First National Bank's associates and convenient locations into the Associated family, we will be able to provide our increasing number of customers in the region more offices closer to home," Beideman said.

With the additional locations added by the acquisition of First National Bank, Associated will have 26 offices in the greater Twin Cities area and 35 total when including all Minnesota and Hudson area locations. Ken Heiser, the current president and CEO of First National Bank, will continue with Associated, serving as Hudson market president. Heiser was North*Western Financial Review's "Banker of the Year" in 2005.

"We are very excited about the opportunities ahead of us as First National Bank and Associated come together." Heiser said. "Our customers will benefit from the expanded range of services and the convenience of more than three times as many banking offices across the greater metro area. At the same lime, we are pleased to become part of a highly respected Midwestern company that shares our community banking philosophy and values."

"We welcome the people of First National Bank and the considerable skills they bring to our organization," Beideman said. "Under Ken Heiser's leadership, they will continue to provide the outstanding level of service that First National Bank customers have come to expect and value. As part of Associated, they will also have a more comprehensive array of products and services to offer their customers, and more opportunities for professional growth."

The transaction is expected to be completed during the second quarter of 2007, subject to regulatory approvals. Associated expects the transaction to be accretive.

The companies expect integration planning to begin immediately and the conversion of banking systems to take place within six months of the transaction's closing. Over time, certain back office support operations currently operated by First National Bank will be integrated into Associated. Layoffs are expected to be minimal, Beideman said. He added that Associated would try to identify new positions for them in the combined organization whenever possible.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with more than 315 offices serving more than 180 communities in Wisconsin, Illinois, and Minnesota. Late last year, Associated announced it would open up to six new branches in the Twin Cities suburbs over the next three years.

Associated has conducted several high profile acquisitions in the broader Twin Cities market, starting in 1999 when it purchased Bank Windsor and Riverside Bank, and continuing through 2001 when it purchased Signal Bank in West St. Paul. The First National Bank of Hudson was established in 1863.