Feb. 9--Paul Beideman has spent a lot of time on the road lately, but he thinks it's for the good of his industry.

The chairman and chief executive officer of Ashwaubenon-based Associated Bank, Wisconsin's second-largest financial institution, has met with business leaders and clients to assure them the bank is sound and had no dealings with subprime mortgages -- the risky loans that threw the nation's banking and financial industries into turmoil and are requiring billions in government aid.

"Our loan growth is healthy and we made money in our fourth quarter," Beideman said. "We also have originated more than $2 billion new loans to businesses and consumers between Nov. 12 and Jan. 12... we are lending money."

It has been a challenge for Associated Bank and other Wisconsin lenders to persuade the public that the national crisis has had little or no effect on the state's financial institutions.

"In this environment, there's a stark difference in what's happening around the country," Beideman said. "You cannot paint a picture in one broad stroke."

Kurt Bauer, president and chief executive officer of the Madison-based Wisconsin Bankers Association, has undertaken a similar campaign as Beideman. Bauer has met with newspaper editorial boards as well as business representatives, working to smooth over the industry's image.

"Wisconsin banks did not make the bad loans," he said. "Banks are feeling the stress of the economy right now."

Bauer blames the national media for lumping all banks into the crisis.

"Many banks engaged in best practices and worked in a highly regulated market," he said.

Bauer said some lenders that dabbled in the subprime market worked in less-regulated conditions and could not be classified as banks, which have stricter rules.

"The public believes it was banks that caused the problems the industry is facing today," he said. "It's not true. Irresponsible lending by subprime lenders that were under-regulated (is) to blame."

Mark Morgan, a senior equity research analyst for Thrivent Financial for Lutherans in Minneapolis, agrees the public has a lot of negative sentiment toward the banking industry.

The closure and acquisition of some lenders including Wachovia, Washington Mutual and National City, by larger banks was the first step in rebuilding consumer confidence, he said.

"The banking industry has a tarnished image," Morgan said, though he believes public perception has improved.

"We're not seeing the run of people pulling their deposits," he said.