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Associated Bank plans to close 21 branches in its three-state territory of Wisconsin, Illinois and Minnesota within the next few months, the bank said Thursday.

Green Bay-based Associated, the largest bank with headquarters in Wisconsin, did not say how many jobs would be lost, but said in a press release that affected employees have been informed and may have opportunities to relocate within the company.

In its statement, the bank did not specify the locations that will close. The closings are expected to occur late in the first quarter or early in the second quarter of 2012, Associated said.

"As part of our strategy, we continuously evaluate our operations to ensure we are investing our resources in a manner that allows us to achieve optimal returns," Associated said.

"Our unwavering goal is to provide consistent, reliable value to both customers and shareholders. Accordingly, we recently completed an evaluation of our retail footprint to ensure our network is ideally positioned for future success, especially as it pertains to the changing regulatory and competitive environment."

According to records from the Federal Deposit Insurance Corp., the bank had more than 4,500 full-time equivalent employees as of Sept. 30, which was up from 4,300 at the same time in 2010.

Associated's chief executive said in October his bank has hired more than 100 people who formerly worked at M&I Bank, which was acquired this summer by Canada's BMO Financial Group.

The FDIC data said Associated had 206 branches in Wisconsin, 51 in Illinois and 24 in Minnesota.

The bank said "all impacted branches are in close proximity to other Associated branch locations, in most cases within two miles."

Still profitable

Associated Banc-Corp posted net income of $34 million in the third quarter of this year, its fifth consecutive profitable quarter.

Through the first nine months of 2011, Associated had net income of $75 million, compared with a loss of $37 million in January through September 2010.

While profitable, Associated, like many banks, has been wrestling with how to offset revenue lost by changes in rules governing debit card fees - the fees merchants pay to banks when customers make purchases with bank-issued debit cards.

A new federal law limits how much banks can charge, roughly reducing the amount by half.

The change in law was estimated to cost Associated almost $19 million a year in debit card interchange revenue.

The bank's statement also said:

"Associated Bank is positioned for continued growth and is committed to continuing to invest in markets where we have significant potential, and in products and services that advance our strong customer relationships and leadership position throughout our three-state footprint."