ASSOCIATED BANC-CORP - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - ASSOCIATED BANC-CORP	d245548d8k.htm
EX-99.2 - SLIDE PRESENTATION - ASSOCIATED BANC-CORP	d245548dex992.htm

Exhibit 99.1


		NEWS RELEASE
		Investor Contact:
		Tim Sedabres, Vice President, Finance
		920-491-7059
		Media Contact:
		Autumn Latimore, Public Relations Director
		414-278-1860

Associated reports Third Quarter Earnings of $0.20 per share

Net income to shareholders of $34.0 million, up 33% from the prior quarter

GREEN BAY, Wis. — October 20, 2011 –– Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $34.0 million, or $0.20 per common share, for the quarter ended September 30, 2011. This compares to net income to common shareholders of $25.6 million, or $0.15 per common share, for the quarter ended June 30, 2011, and net income to common shareholders of $6.9 million, or $0.04 per common share, for the comparable quarter ended September 30, 2010.

“We are pleased with our improving results. Our focus remains on meeting the needs of our customers and investing in our core businesses. We continue to see opportunities to invest in our franchise and expect to see these investments pay-off in the future,” said President and CEO Philip B. Flynn.

HIGHLIGHTS

•

Quarterly pre-tax income improved by 33%, or $15 million and net income available to common shareholders improved by 33%, or $8 million from the prior quarter

•

Total loans of $13.5 billion were up 3%, or $414 million from the prior quarter, with growth in each major segment of the portfolio including commercial and business lending, commercial real estate lending, and residential mortgage

–

Commercial and business lending (C&I, leasing, and owner-occupied CRE loans) grew $198 million during the quarter

–

Commercial real estate lending (Investor CRE and construction loans) increased $108 million from the prior quarter

–

Retail loans and residential mortgage loans grew $108 million during the quarter

•

Continued improvements in key credit metrics

–

Nonaccrual loans declined $64 million, or 14% from the prior quarter to $403 million, the lowest level in seven quarters

–

Provision for loan losses of $4 million was down significantly from the prior quarter

–

Net charge-offs of $30 million were down 32% from $45 million for the prior quarter

•

Completed the repurchase of remaining TARP funds through senior note and preferred stock offerings

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ASSOCIATED BANC-CORP REPORTS THIRD QUARTER 2011 RESULTS

THIRD QUARTER 2011 FINANCIAL RESULTS

Loans

At September 30, 2011, the Company’s loan portfolio was $13.5 billion, up $414 million, or 3%, from $13.1 billion at June 30, 2011, and up $1.1 billion, or 9%, from $12.4 billion a year ago. Commercial loans grew $306 million on a linked-quarter basis, with strong growth coming from both the commercial and industrial (C&I) and commercial real estate (CRE) portfolios. The retail and residential mortgage segment was also up by a net $108 million, or 2%, from the second quarter.

Deposits and Customer Funding

Total deposits and customer funding of $16.8 billion at the end of the third quarter was up 4% from $16.1 billion at the end of the second quarter. Total deposits were $14.8 billion at September 30, 2011, up significantly from $14.1 billion at June 30, 2011. The net deposit growth during the quarter included a $493 million, or a 15% increase, in demand deposits and a $223 million, or 5% increase, in money market deposits and was primarily driven by customer activity and seasonal flows. The Company continued to focus on growing core customer funding and reducing brokered CDs and network deposits which declined by a net $61 million, down 5% from the prior quarter.

Net Interest Income and Net Interest Margin

Third quarter net interest income was $153 million, declining by $1 million from the second quarter of 2011. Consistent with the Company’s strategy of funding loan growth primarily through securities run-off, net interest income from loans grew quarter over quarter while securities income continued to contract. The third quarter net interest margin was 3.23%, down 6 basis points from the prior period. Yields on earning assets compressed by 12 basis points quarter over quarter, while the cost of interest-bearing deposits (excluding brokered CDs) declined by 6 basis points; contributing to the net 6 basis point reduction in overall net interest margin.

Noninterest Income and Expense

Noninterest income for the quarter was $72 million, up $7 million, or 11%, from the second quarter. The improvement was primarily driven by increases in mortgage banking income which benefited from a $5 million increase in income as a result of higher mortgage production as well as $2 million from lower valuation expense on mortgage servicing rights. However, we expect that regulatory changes, coupled with changes in checking-related product fees and customer behavior will negatively impact fee-based revenues going forward.

Total noninterest expense for the quarter ended September 30, 2011 was $162 million, up $3 million, or 2%, from the second quarter, primarily attributable to increases in personnel and occupancy expenses. Personnel expense increased $1 million for the quarter as the investment in key hires continued and occupancy expense was up $2 million from the second quarter.

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Page 2


ASSOCIATED BANC-CORP REPORTS THIRD QUARTER 2011 RESULTS

Key Credit Metrics

The Company reported another quarter of improving credit metrics with nonaccrual loans down 14% to $403 million from $468 million at June 30, 2011, and down 45% from $728 million at September 30, 2010. Potential problem loans declined to $660 million, down 6% from $699 million for the second quarter, and down 42% from $1.1 billion a year ago.

Net charge-offs were $30 million for the third quarter, down 32% from $45 million for the second quarter of 2011, and down 73% from $110 million for the third quarter of 2010. Third quarter provision for loan losses was $4 million, down significantly from $16 million for the second quarter of 2011, and $64 million for the third quarter of 2010. The Company’s allowance for loan losses was $400 million, representing an allowance equal to 2.96% of loans, and covered 99% of nonaccrual loans at September 30, 2011.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common ratio of 12.44% at September 30, 2011 compared to 12.61% at the end of the second quarter and 12.31% a year ago. The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks, the highest regulatory capital level, and also exceed the proposed guidelines recently published by the Basel Committee and endorsed by U.S. regulatory agencies.

On September 14, 2011, the Company used the net proceeds from the September debt and preferred stock offerings to retire the remaining balance of the CPP preferred shares the Company issued under TARP. The Company recorded a noncash charge of $4 million during the quarter for the repurchase of the remaining CPP preferred shares, which represented the difference between the unamortized cost of the repurchased preferred stock and the repurchase price.

“Our capital ratios following our September senior notes and preferred stock offerings and the subsequent TARP repayment continue to exceed the standards for well-capitalized banks,” Flynn continued. “This strong capital position provides us with flexibility as we continue to execute our strategic plans for growth.”

“We are pleased with the solid results of this quarter. We are proud to have delivered on our commitment we made to our shareholders to repay TARP in a shareholder-friendly manner,” Flynn continued. “Despite the soft economy, we continue to see opportunities to create shareholder value and are committed to capitalizing on these opportunities.”

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Page 3


ASSOCIATED BANC-CORP REPORTS THIRD QUARTER 2011 RESULTS

THIRD QUARTER 2011 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, October, 20, 2011. Interested parties can listen to the call live on the Internet through the investor relations section of the company’s website, http://investor.associatedbank.com/ or by dialing 877-348-9354. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 253-237-1160. Participants should ask the operator for the Associated Banc-Corp third quarter 2011 earnings call, or conference ID number 10934250.

An audio archive of the webcast will be available on the company’s website for one month following the call. A replay of the call will be available starting at 7:00 p.m. CT on October 20, 2011 through 11:00 p.m. CT on November 20, 2011 by dialing 855-859-2056 and entering the conference ID number 10934250. The replay number for international callers is 404-537-3406.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $22 billion and is one of the top 50 financial services holding companies operating in the United States. Headquartered in Green Bay, Wis., Associated has approximately 270 banking locations serving more than 150 communities throughout Wisconsin, Illinois and Minnesota. The company offers a full range of banking services and other financial products and services. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

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 most recent Annual Report filed on Form 10-K as updated by the Company’s most recent Form 10-Q.

# # #

Page 4

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp


(in thousands)	September 30, 2011			June 30, 2011			Seql Qtr $ Change			March 31, 2011			December 31, 2010			September 30, 2010			Comp Qtr $ Change
*Assets*
Cash and due from banks	$	410,644		$	314,682		$	95,962		$	299,040		$	319,487		$	316,914		$	93,730
Interest-bearing deposits in other financial institutions		250,648			777,675			(527,027	)		498,094			546,125			1,717,853			(1,467,205	)
Federal funds sold and securities purchased under agreements to resell		4,180			2,400			1,780			2,015			2,550			503,950			(499,770	)
Securities available for sale, at fair value		5,453,816			5,742,034			(288,218	)		5,883,541			6,101,341			5,291,336			162,480
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		191,128			191,075			53			191,017			190,968			190,918			210
Loans held for sale		201,142			84,323			116,819			85,493			144,808			274,666			(73,524	)
Loans		13,503,507			13,089,589			413,918			12,655,322			12,616,735			12,372,393			1,131,114
Allowance for loan losses		(399,723	)		(425,961	)		26,238			(454,461	)		(476,813	)		(522,018	)		122,295

Loans, net		13,103,784			12,663,628			440,156			12,200,861			12,139,922			11,850,375			1,253,409
Premises and equipment, net		208,301			192,506			15,795			186,329			190,533			181,236			27,065
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		67,970			74,872			(6,902	)		85,200			88,044			84,824			(16,854	)
Other assets		1,081,868			1,076,112			5,756			1,112,807			1,132,650			1,184,046			(102,178	)

*Total assets*	$	21,902,649		$	22,048,475		$	(145,826	)	$	21,473,565		$	21,785,596		$	22,525,286			(622,637	)


*Liabilities and Stockholders’ Equity*
Noninterest-bearing deposits	$	3,711,570		$	3,218,722		$	492,848		$	3,285,604		$	3,684,965		$	3,054,121			657,449
Interest-bearing deposits, excl Brokered CDs		10,867,013			10,530,658			336,355			10,413,994			11,097,788			13,308,530			(2,441,517	)
Brokered CDs		203,827			316,670			(112,843	)		324,045			442,640			442,209			(238,382	)

Total deposits		14,782,410			14,066,050			716,360			14,023,643			15,225,393			16,804,860			(2,022,450	)
Short-term funding		2,531,776			3,255,670			(723,894	)		2,547,805			1,747,382			539,263			1,992,513
Long-term funding		1,477,408			1,484,174			(6,766	)		1,484,177			1,413,605			1,713,671			(236,263	)
Accrued expenses and other liabilities		260,436			243,433			17,003			223,226			240,425			266,643			(6,207	)

Total liabilities		19,052,030			19,049,327			2,703			18,278,851			18,626,805			19,324,437			(272,407	)
Stockholders’ Equity
Preferred equity		63,272			258,051			(194,779	)		515,238			514,388			513,550			(450,278	)
Common stock		1,746			1,745			1			1,744			1,739			1,738			8
Surplus		1,585,208			1,581,594			3,614			1,576,903			1,573,372			1,569,963			15,245
Retained earnings		1,111,080			1,079,076			32,004			1,055,344			1,041,666			1,036,800			74,280
Accumulated other comprehensive income		89,313			79,345			9,968			45,731			27,626			78,798			10,515
Treasury stock		—			(663	)		663			(246	)		—			—			—

Total stockholders’ equity		2,850,619			2,999,148			(148,529	)		3,194,714			3,158,791			3,200,849			(350,230	)

*Total liabilities and stockholders’ equity*	$	21,902,649		$	22,048,475		$	(145,826	)	$	21,473,565		$	21,785,596		$	22,525,286		$	(622,637	)

Page 5

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp


	For The Three Months Ended September 30,						Quarter						For The Nine Months Ended, September 30,						Year-to-Date
(in thousands, except per share amounts)	2011			2010			$ Change			% Change			2011			2010			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	145,778		$	148,937		$	(3,159	)		(2.1	%)	$	432,907		$	462,043		$	(29,136	)		(6.3	%)
Interest and dividends on investment securities:
Taxable		30,513			36,151			(5,638	)		(15.6	%)		100,516			122,611			(22,095	)		(18.0	%)
Tax-exempt		7,376			8,499			(1,123	)		(13.2	%)		22,593			25,765			(3,172	)		(12.3	%)
Other interest and dividends		1,428			2,629			(1,201	)		(45.7	%)		4,324			6,615			(2,291	)		(34.6	%)

Total interest income		185,095			196,216			(11,121	)		(5.7	%)		560,340			617,034			(56,694	)		(9.2	%)
*Interest Expense*
Interest on deposits		15,644			25,879			(10,235	)		(39.5	%)		50,794			82,984			(32,190	)		(38.8	%)
Interest on short-term funding		3,039			1,849			1,190			64.4	%		10,255			5,695			4,560			80.1	%
Interest on long-term funding		13,252			14,584			(1,332	)		(9.1	%)		38,285			45,436			(7,151	)		(15.7	%)

Total interest expense		31,935			42,312			(10,377	)		(24.5	%)		99,334			134,115			(34,781	)		(25.9	%)

*Net Interest Income*		153,160			153,904			(744	)		(0.5	%)		461,006			482,919			(21,913	)		(4.5	%)
Provision for loan losses		4,000			64,000			(60,000	)		(93.8	%)		51,000			327,010			(276,010	)		(84.4	%)

Net interest income after provision for loan losses		149,160			89,904			59,256			65.9	%		410,006			155,909			254,097			163.0	%
*Noninterest Income*
Trust service fees		9,791			9,462			329			3.5	%		29,634			28,335			1,299			4.6	%
Service charges on deposit accounts		19,949			23,845			(3,896	)		(16.3	%)		58,125			76,350			(18,225	)		(23.9	%)
Card-based and other nondeposit fees		15,291			14,906			385			2.6	%		46,636			43,457			3,179			7.3	%
Retail commissions		15,047			15,276			(229	)		(1.5	%)		47,903			46,815			1,088			2.3	%

Total core fee-based revenue		60,078			63,489			(3,411	)		(5.4	%)		182,298			194,957			(12,659	)		(6.5	%)
Mortgage banking, net		4,521			9,007			(4,486	)		(49.8	%)		3,046			19,907			(16,861	)		(84.7	%)
Capital market fees, net		3,273			891			2,382			267.3	%		4,761			885			3,876			438.0	%
Bank owned life insurance income		3,990			3,756			234			6.2	%		11,076			11,252			(176	)		(1.6	%)
Asset sale losses, net		(1,179	)		(2,354	)		1,175			(49.9	%)		(3,374	)		(2,518	)		(856	)		34.0	%
Investment securities gains (losses), net		(744	)		3,365			(4,109	)		N/M			(802	)		26,800			(27,602	)		N/M
Other		1,737			3,743			(2,006	)		(53.6	%)		11,608			9,543			2,065			21.6	%

Total noninterest income		71,676			81,897			(10,221	)		(12.5	%)		208,613			260,826			(52,213	)		(20.0	%)
*Noninterest Expense*
Personnel expense		90,377			80,640			9,737			12.1	%		268,510			239,337			29,173			12.2	%
Occupancy		14,205			12,157			2,048			16.8	%		42,143			37,038			5,105			13.8	%
Equipment		4,851			4,637			214			4.6	%		14,587			13,472			1,115			8.3	%
Data processing		7,887			7,502			385			5.1	%		23,395			22,667			728			3.2	%
Business development and advertising		5,539			4,297			1,242			28.9	%		16,134			13,515			2,619			19.4	%
Other intangible amortization		1,179			1,206			(27	)		(2.2	%)		3,535			3,713			(178	)		(4.8	%)
Legal and professional fees		4,289			6,774			(2,485	)		(36.7	%)		13,554			15,086			(1,532	)		(10.2	%)
Losses other than loans		1,659			2,504			(845	)		(33.7	%)		6,031			7,323			(1,292	)		(17.6	%)
Foreclosure/OREO expense		7,662			7,349			313			4.3	%		23,250			23,984			(734	)		(3.1	%)
FDIC expense		6,906			11,426			(4,520	)		(39.6	%)		22,348			35,282			(12,934	)		(36.7	%)
Other		17,606			18,088			(482	)		(2.7	%)		51,735			52,060			(325	)		(0.6	%)

Total noninterest expense		162,160			156,580			5,580			3.6	%		485,222			463,477			21,745			4.7	%

*Income (loss) before income taxes*		58,676			15,221			43,455			285.5	%		133,397			(46,742	)		180,139			N/M
Income tax expense (benefit)		17,337			917			16,420			N/M			34,823			(31,878	)		66,701			N/M

*Net income (loss)*		41,339			14,304			27,035			189.0	%		98,574			(14,864	)	$	113,438			N/M
Preferred stock dividends and discount		7,305			7,389			(84	)		(1.1	%)		23,530			22,131			1,399			6.3	%

*Net income (loss) available to common equity*	$	34,034		$	6,915		$	27,119			392.2	%	$	75,044		$	(36,995	)	$	112,039			N/M

Earnings (Loss) Per Common Share:
Basic	$	0.20		$	0.04		$	0.16			400.0	%	$	0.43		$	(0.22	)	$	0.65			N/M
Diluted	$	0.20		$	0.04		$	0.16			400.0	%	$	0.43		$	(0.22	)	$	0.65			N/M

Average Common Shares Outstanding:
Basic		173,418			172,989			429			0.2	%		173,319			170,610			2,709			1.6	%
Diluted		173,418			172,990			428			0.2	%		173,321			170,610			2,711			1.6	%

N/M = Not meaningful.

Page 6

Consolidated Statements of Income (Unaudited) - Quarterly Trend

Associated Banc-Corp


							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	3Q11			2Q11			$ Change			% Change			1Q11			4Q10			3Q10			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	145,778		$	144,358		$	1,420			1.0	%	$	142,771		$	146,444		$	148,937		$	(3,159	)		(2.1	%)
Interest and dividends on investment securities:
Taxable		30,513			35,351			(4,838	)		(13.7	%)		34,652			32,420			36,151			(5,638	)		(15.6	%)
Tax-exempt		7,376			7,504			(128	)		(1.7	%)		7,713			8,150			8,499			(1,123	)		(13.2	%)
Other interest and dividends		1,428			1,438			(10	)		(0.7	%)		1,458			2,078			2,629			(1,201	)		(45.7	%)

Total interest income		185,095			188,651			(3,556	)		(1.9	%)		186,594			189,092			196,216			(11,121	)		(5.7	%)
*Interest Expense*
Interest on deposits		15,644			16,901			(1,257	)		(7.4	%)		18,249			23,039			25,879			(10,235	)		(39.5	%)
Interest on short-term funding		3,039			3,637			(598	)		(16.4	%)		3,579			2,288			1,849			1,190			64.4	%
Interest on long-term funding		13,252			13,990			(738	)		(5.3	%)		11,043			12,905			14,584			(1,332	)		(9.1	%)

Total interest expense		31,935			34,528			(2,593	)		(7.5	%)		32,871			38,232			42,312			(10,377	)		(24.5	%)

*Net Interest Income*		153,160			154,123			(963	)		(0.6	%)		153,723			150,860			153,904			(744	)		(0.5	%)
Provision for loan losses		4,000			16,000			(12,000	)		(75.0	%)		31,000			63,000			64,000			(60,000	)		(93.8	%)

Net interest income after provision for loan losses		149,160			138,123			11,037			8.0	%		122,723			87,860			89,904			59,256			65.9	%
*Noninterest Income*
Trust service fees		9,791			10,012			(221	)		(2.2	%)		9,831			9,518			9,462			329			3.5	%
Service charges on deposit accounts		19,949			19,112			837			4.4	%		19,064			20,390			23,845			(3,896	)		(16.3	%)
Card-based and other nondeposit fees		15,291			15,747			(456	)		(2.9	%)		15,598			15,842			14,906			385			2.6	%
Retail commissions		15,047			16,475			(1,428	)		(8.7	%)		16,381			14,441			15,276			(229	)		(1.5	%)

Total core fee-based revenue		60,078			61,346			(1,268	)		(2.1	%)		60,874			60,191			63,489			(3,411	)		(5.4	%)
Mortgage banking, net		4,521			(3,320	)		7,841			N/M			1,845			13,229			9,007			(4,486	)		(49.8	%)
Capital market fees, net		3,273			(890	)		4,163			N/M			2,378			5,187			891			2,382			267.3	%
Bank owned life insurance income		3,990			3,500			490			14.0	%		3,586			4,509			3,756			234			6.2	%
Asset sale gains (losses), net		(1,179	)		(209	)		(970	)		N/M			(1,986	)		514			(2,354	)		1,175			(49.9	%)
Investment securities gains (losses), net		(744	)		(36	)		(708	)		N/M			(22	)		(1,883	)		3,365			(4,109	)		(122.1	%)
Other		1,737			4,364			(2,627	)		(60.2	%)		5,507			2,950			3,743			(2,006	)		(53.6	%)

Total noninterest income		71,676			64,755			6,921			10.7	%		72,182			84,697			81,897			(10,221	)		(12.5	%)
*Noninterest Expense*
Personnel expense		90,377			89,203			1,174			1.3	%		88,930			83,912			80,640			9,737			12.1	%
Occupancy		14,205			12,663			1,542			12.2	%		15,275			12,899			12,157			2,048			16.8	%
Equipment		4,851			4,969			(118	)		(2.4	%)		4,767			4,899			4,637			214			4.6	%
Data processing		7,887			7,974			(87	)		(1.1	%)		7,534			7,047			7,502			385			5.1	%
Business development and advertising		5,539			5,652			(113	)		(2.0	%)		4,943			4,870			4,297			1,242			28.9	%
Other intangible amortization		1,179			1,178			1			0.1	%		1,178			1,206			1,206			(27	)		(2.2	%)
Legal and professional fees		4,289			4,783			(494	)		(10.3	%)		4,482			5,353			6,774			(2,485	)		(36.7	%)
Losses other than loans		1,659			(1,925	)		3,584			N/M			6,297			7,470			2,504			(845	)		(33.7	%)
Foreclosure/OREO expense		7,662			9,527			(1,865	)		(19.6	%)		6,061			9,860			7,349			313			4.3	%
FDIC expense		6,906			7,198			(292	)		(4.1	%)		8,244			11,095			11,426			(4,520	)		(39.6	%)
Other		17,606			17,664			(58	)		(0.3	%)		16,465			18,232			18,088			(482	)		(2.7	%)

Total noninterest expense		162,160			158,886			3,274			2.1	%		164,176			166,843			156,580			5,580			3.6	%

*Income before income taxes*		58,676			43,992			14,684			33.4	%		30,729			5,714			15,221			43,455			285.5	%
Income tax expense (benefit)		17,337			9,610			7,727			80.4	%		7,876			(8,294	)		917			16,420			N/M

*Net income*		41,339			34,382			6,957			20.2	%		22,853			14,008			14,304			27,035			189.0	%
Preferred stock dividends and discount		7,305			8,812			(1,507	)		(17.1	%)		7,413			7,400			7,389			(84	)		(1.1	%)

*Net income available to common equity*	$	34,034		$	25,570		$	8,464			33.1	%	$	15,440		$	6,608		$	6,915		$	27,119			392.2	%

Earnings Per Common Share:
Basic	$	0.20		$	0.15		$	0.05			33.3	%	$	0.09		$	0.04		$	0.04		$	0.16			400.0	%
Diluted	$	0.20		$	0.15		$	0.05			33.3	%	$	0.09		$	0.04		$	0.04		$	0.16			400.0	%
Average Common Shares Outstanding:
Basic		173,418			173,323			95			0.1	%		173,213			173,068			172,989			429			0.2	%
Diluted		173,418			173,327			91			0.1	%		173,217			173,072			172,990			428			0.2	%

N/M = Not meaningful.

Page 7

Selected Quarterly Information

Associated Banc-Corp


(in thousands, except per share and full time equivalent employee data)	YTD 2011			YTD 2010			3rd Qtr 2011			2nd Qtr 2011			1st Qtr 2011			4th Qtr 2010			3rd Qtr 2010
*Summary of Operations*
Net interest income	$	461,006		$	482,919		$	153,160		$	154,123		$	153,723		$	150,860		$	153,904
Provision for loan losses		51,000			327,010			4,000			16,000			31,000			63,000			64,000
Asset sale gains (losses), net		(3,374	)		(2,518	)		(1,179	)		(209	)		(1,986	)		514			(2,354	)
Investment securities gains (losses), net		(802	)		26,800			(744	)		(36	)		(22	)		(1,883	)		3,365
Noninterest income (excluding securities & asset gains)		212,789			236,544			73,599			65,000			74,190			86,066			80,886
Noninterest expense		485,222			463,477			162,160			158,886			164,176			166,843			156,580
Income (loss) before income taxes		133,397			(46,742	)		58,676			43,992			30,729			5,714			15,221
Income tax expense (benefit)		34,823			(31,878	)		17,337			9,610			7,876			(8,294	)		917
Net income (loss)		98,574			(14,864	)		41,339			34,382			22,853			14,008			14,304
Net income (loss) available to common equity		75,044			(36,995	)		34,034			25,570			15,440			6,608			6,915
Taxable equivalent adjustment		16,067			17,914			5,295			5,332			5,440			5,721			5,914

*Per Common Share Data*
Net income (loss):
Basic	$	0.43		$	(0.22	)	$	0.20		$	0.15		$	0.09		$	0.04		$	0.04
Diluted		0.43			(0.22	)		0.20			0.15			0.09			0.04			0.04
Dividends		0.03			0.03			0.01			0.01			0.01			0.01			0.01
Market Value:
High	$	15.36		$	16.10		$	14.17		$	15.02		$	15.36		$	15.49		$	13.90
Low		8.95			11.48			8.95			13.06			13.83			12.57			11.96
Close		9.30			13.19			9.30			13.90			14.85			15.15			13.19
Book value		16.07			15.53			16.07			15.81			15.46			15.28			15.53
Tangible book value		10.59			10.02			10.59			10.33			9.97			9.77			10.02

*Performance Ratios (annualized)*
Earning assets yield		3.96	%		4.08	%		3.88	%		4.00	%		4.01	%		3.89	%		3.90	%
Interest-bearing liabilities rate		0.88			1.08			0.83			0.91			0.89			0.98			1.03
Net interest margin		3.28			3.22			3.23			3.29			3.32			3.13			3.08
Return on average assets		0.61			(0.09	)		0.75			0.64			0.43			0.25			0.25
Return on average equity		4.33			(0.63	)		5.49			4.63			2.92			1.74			1.77
Return on average tangible common equity (1)		5.71			(2.89	)		7.44			5.85			3.67			1.52			1.58
Efficiency ratio (2)		70.34			62.85			69.88			70.79			70.36			68.76			65.05
Effective tax rate (benefit)		26.10			(68.20	)		29.55			21.84			25.63			(145.13	)		6.03
Dividend payout ratio (3)		6.98			N/M			5.00			6.67			11.11			25.00			25.02

*Average Balances*
Assets	$	21,532,170		$	22,824,238		$	21,729,187		$	21,526,155		$	21,336,858		$	22,034,041		$	22,727,208
Earning assets		19,420,572			20,776,661			19,530,007			19,431,292			19,297,866			19,950,784			20,660,498
Interest-bearing liabilities		15,129,294			16,583,326			15,215,517			15,261,514			14,907,465			15,476,002			16,376,904
Loans (4)		13,021,134			13,388,577			13,376,928			13,004,904			12,673,844			12,587,702			12,855,791
Deposits		14,235,123			17,112,719			14,405,311			14,052,689			14,245,614			16,452,473			17,138,105
Short and long-term funding		4,182,908			2,500,326			4,227,319			4,434,500			3,883,122			2,311,016			2,326,469
Common stockholders’ equity		2,709,688			2,667,294			2,765,023			2,704,909			2,657,956			2,681,813			2,693,735
Stockholders’ equity		3,044,872			3,179,500			2,987,178			2,976,840			3,172,636			3,195,657			3,206,742
Common stockholders’ equity / assets		12.58	%		11.69	%		12.72	%		12.57	%		12.46	%		12.17	%		11.85	%
Stockholders’ equity / assets		14.14	%		13.93	%		13.75	%		13.83	%		14.87	%		14.50	%		14.11	%

*At Period End*
Assets							$	21,902,649		$	22,048,475		$	21,473,565		$	21,785,596		$	22,525,286
Loans								13,503,507			13,089,589			12,655,322			12,616,735			12,372,393
Allowance for loan losses								399,723			425,961			454,461			476,813			522,018
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								47,370			53,093			62,243			63,909			59,483
Other intangible assets								20,600			21,779			22,957			24,135			25,341
Deposits								14,782,410			14,066,050			14,023,643			15,225,393			16,804,860
Short and long-term funding								4,009,184			4,739,844			4,031,982			3,160,987			2,252,934
Stockholders’ equity								2,850,619			2,999,148			3,194,714			3,158,791			3,200,849
Stockholders’ equity / assets								13.01	%		13.60	%		14.88	%		14.50	%		14.21	%
Tangible common equity / tangible assets (5)								8.77	%		8.49	%		8.42	%		8.12	%		8.03	%
Tangible equity/tangible assets (6)								9.07	%		9.71	%		10.93	%		10.59	%		10.41	%
Tier 1 common equity / risk-weighted assets (7)								12.44	%		12.61	%		12.65	%		12.26	%		12.31	%
Tier 1 leverage ratio								9.62	%		10.46	%		11.65	%		11.19	%		10.78	%
Tier 1 risk-based capital ratio								14.35	%		16.03	%		18.08	%		17.58	%		17.68	%
Total risk-based capital ratio								15.81	%		17.50	%		19.56	%		19.05	%		19.16	%
Shares outstanding, end of period								173,474			173,374			173,274			173,112			173,019

*Selected trend information*
Average full time equivalent employees								4,980			4,977			4,929			4,865			4,827
Trust assets under management, at market value							$	5,300,000		$	5,700,000		$	5,900,000		$	5,700,000		$	5,400,000
Mortgage loans originated for sale during period								470,530			250,880			290,013			629,978			727,868
Mortgage portfolio serviced for others								7,281,000			7,367,000			7,476,000			7,453,000			7,860,000
Mortgage servicing rights, net / portfolio serviced for others								0.65	%		0.72	%		0.83	%		0.86	%		0.76	%

N/M = Not meaningful.

(1)	Return on average tangible common equity = Net income available to common equity divided by average common equity excluding average goodwill and other intangible assets. This is a non-GAAP financial measure.

(2)	Efficiency ratio = Noninterest expense divided by sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains, net, and asset sales gains, net.

This is a non-GAAP financial measure.

(3)	Ratio is based upon basic earnings per common share.

(4)	Loans held for sale have been included in the average balances.

(5)	Tangible common equity to tangible assets = Common 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)	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.

(7)	Tier 1 common equity to risk-weighted assets = Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities divided by risk-weighted assets. This is a non-GAAP financial measure.

Page 8

Selected Asset Quality Information

Associated Banc-Corp


(in thousands)	Sep 30, 2011			Jun 30, 2011			Sep11 vs Jun11 % Change			Mar 31, 2011			Dec 31, 2010			Sep 30, 2010			Sep11 vs Sep10 % Change
*Allowance for Loan Losses*
Beginning balance	$	425,961		$	454,461			(6.3	%)	$	476,813		$	522,018		$	567,912			(25.0	%)
Provision for loan losses		4,000			16,000			(75.0	%)		31,000			63,000			64,000			(93.8	%)
Charge offs		(38,155	)		(52,365	)		(27.1	%)		(65,156	)		(118,368	)		(122,327	)		(68.8	%)
Recoveries		7,917			7,865			0.7	%		11,804			10,163			12,433			(36.3	%)

Net charge offs		(30,238	)		(44,500	)		(32.0	%)		(53,352	)		(108,205	)		(109,894	)		(72.5	%)

Ending balance	$	399,723		$	425,961			(6.2	%)	$	454,461		$	476,813		$	522,018			(23.4	%)

Reserve for losses on unfunded commitments	$	14,900		$	14,900			0.0	%	$	17,800		$	17,374		$	16,274			(8.4	%)


*Net Charge Offs*	Sep 30, 2011			Jun 30, 2011			Sep11 vs Jun11 % Change			Mar 31, 2011			Dec 31, 2010			Sep 30, 2010			Sep11 vs Sep10 % Change
Commercial and industrial	$	3,741		$	14,026			(73.3	%)	$	4,314		$	27,041		$	4,274			(12.5	%)
Commercial real estate		10,606			9,377			13.1	%		7,873			20,103			28,517			(62.8	%)
Real estate — construction		5,646			6,031			(6.4	%)		11,936			31,879			60,488			(90.7	%)
Lease financing		(1,889	)		60			N/M			28			9,159			826			(328.7	%)

Total commercial		18,104			29,494			(38.6	%)		24,151			88,182			94,105			(80.8	%)
Home equity		8,736			8,251			5.9	%		14,322			14,541			10,875			(19.7	%)
Installment (1)		764			664			15.1	%		12,670			2,369			1,640			(53.4	%)

Total retail		9,500			8,915			6.6	%		26,992			16,910			12,515			(24.1	%)
Residential mortgage		2,634			6,091			(56.8	%)		2,209			3,113			3,274			(19.5	%)

Total net charge offs	$	30,238		$	44,500			(32.0	%)	$	53,352		$	108,205		$	109,894			(72.5	%)


Net Charge Offs to Average Loans (in basis points) *	Sep 30, 2011			Jun 30, 2011						Mar 31, 2011			Dec 31, 2010			Sep 30, 2010
Commercial and industrial		46			180						60			364			57
Commercial real estate		120			111						94			231			319
Real estate — construction		407			454						888			1,820			2,598
Lease financing		(1,396	)		44						20			5,051			416

Total commercial		98			166						142			488			498
Home equity		134			127						227			231			175
Installment		52			42						759			131			74

Total retail		119			111						338			209			148
Residential mortgage		36			92						35			56			65

Total net charge offs		90			137						171			341			339


*Credit Quality*	Sep 30, 2011			Jun 30, 2011			Sep11 vs Jun11 % Change			Mar 31, 2011			Dec 31, 2010			Sep 30, 2010			Sep11 vs Sep10 % Change
Nonaccrual loans	$	403,392		$	467,611			(13.7	%)	$	488,321		$	574,356		$	727,877			(44.6	%)
Other real estate owned (OREO)		42,076			45,712			(8.0	%)		49,019			44,330			53,101			(20.8	%)

Total nonperforming assets	$	445,468		$	513,323			(13.2	%)	$	537,340		$	618,686		$	780,978			(43.0	%)

Loans 90 or more days past due and still accruing		1,220			12,123			(89.9	%)		9,380			3,418			26,593			(95.4	%)
Restructured loans (accruing)		113,083			100,343			12.7	%		88,193			79,935			62,778			80.1	%
Allowance for loan losses / loans		2.96	%		3.25	%					3.59	%		3.78	%		4.22	%
Allowance for loan losses / nonaccrual loans		99.09			91.09						93.07			83.02			71.72
Nonaccrual loans / total loans		2.99			3.57						3.86			4.55			5.88
Nonperforming assets / total loans plus OREO		3.29			3.91						4.23			4.89			6.29
Nonperforming assets / total assets		2.03			2.33						2.50			2.84			3.47
Net charge offs / average loans (annualized)		0.90			1.37						1.71			3.41			3.39
Year-to-date net charge offs / average loans		1.32			1.54						1.71			3.69			3.78

Nonaccrual loans by type:
Commercial and industrial	$	61,256		$	71,183			(13.9	%)	$	76,780		$	99,845		$	156,697			(60.9	%)
Commercial real estate		144,893			193,495			(25.1	%)		186,547			223,927			275,586			(47.4	%)
Real estate — construction		72,300			72,782			(0.7	%)		84,903			94,929			132,425			(45.4	%)
Lease financing		11,667			12,898			(9.5	%)		15,270			17,080			26,922			(56.7	%)

Total commercial		290,116			350,358			(17.2	%)		363,500			435,781			591,630			(51.0	%)
Home equity		46,119			46,777			(1.4	%)		49,618			51,712			50,901			(9.4	%)
Installment		3,195			3,724			(14.2	%)		4,949			10,544			8,757			(63.5	%)

Total retail		49,314			50,501			(2.4	%)		54,567			62,256			59,658			(17.3	%)
Residential mortgage		63,962			66,752			(4.2	%)		70,254			76,319			76,589			(16.5	%)

Total nonaccrual loans	$	403,392		$	467,611			(13.7	%)	$	488,321		$	574,356		$	727,877			(44.6	%)

*	Annualized.

N/M = Not meaningful.

(1)	Charge offs for the three months ended March 31, 2011, include $10 million of write-downs related to installment loans transferred to held for sale.

Page 9

Selected Asset Quality Information (continued)

Associated Banc-Corp


(in thousands)	Sep 30, 2011		Jun 30, 2011		Sep11 vs Jun11 % Change			Mar 31, 2011		Dec 31, 2010		Sep 30, 2010		Sep11 vs Sep10 % Change
*Restructured loans (accruing)*
Commercial and industrial	$	23,020	$	22,760		1.1	%	$	16,047	$	9,980	$	620		N/M
Commercial real estate		48,892		36,191		35.1	%		34,166		15,612		23,387		109.1	%
Real estate — construction		10,707		10,706		0.0	%		7,859		22,532		7,076		51.3	%
Lease financing		—		—		0.0	%		—		—		—		0.0	%

Total commercial		82,619		69,657		18.6	%		58,072		48,124		31,083		165.8	%
Home equity		10,556		11,453		(7.8	%)		11,630		11,741		10,269		2.8	%
Installment		965		1,017		(5.1	%)		1,149		692		793		21.7	%

Total retail		11,521		12,470		(7.6	%)		12,779		12,433		11,062		4.1	%
Residential mortgage		18,943		18,216		4.0	%		17,342		19,378		20,633		(8.2	%)

Total restructured loans (accruing)	$	113,083	$	100,343		12.7	%	$	88,193	$	79,935	$	62,778		80.1	%

Restructured loans in nonaccrual loans (not included above)	$	80,063	$	71,084		12.6	%	$	49,352	$	35,939	$	32,657		145.2	%

*Loans Past Due 30-89 Days*					Sep11 vs Jun11									Sep11 vs Sep10
	Sep 30, 2011		Jun 30, 2011		% Change			Mar 31, 2011		Dec 31, 2010		Sep 30, 2010		% Change
Commercial and industrial	$	6,255	$	7,581		(17.5	%)	$	36,205	$	33,013	$	14,505		(56.9	%)
Commercial real estate		99,545		61,240		62.5	%		40,537		46,486		56,710		75.5	%
Real estate - construction		5,493		13,217		(58.4	%)		3,410		8,016		12,225		(55.1	%)
Lease financing		507		79		541.8	%		135		132		168		201.8	%

Total commercial		111,800		82,117		36.1	%		80,287		87,647		83,608		33.7	%
Home equity		18,165		14,818		22.6	%		14,808		13,886		20,044		(9.4	%)
Installment		1,956		3,851		(49.2	%)		2,714		9,624		10,536		(81.4	%)

Total retail		20,121		18,669		7.8	%		17,522		23,510		30,580		(34.2	%)
Residential mortgage		12,114		12,573		(3.7	%)		7,940		8,722		10,065		20.4	%

Total loans past due 30-89 days	$	144,035	$	113,359		27.1	%	$	105,749	$	119,879	$	124,253		15.9	%


*Potential Problem Loans*					Sep11 vs Jun11									Sep11 vs Sep10
	Sep 30, 2011		Jun 30, 2011		% Change			Mar 31, 2011		Dec 31, 2010		Sep 30, 2010		% Change
Commercial and industrial	$	207,351	$	229,407		(9.6	%)	$	348,949	$	354,284	$	373,955		(44.6	%)
Commercial real estate		392,737		382,056		2.8	%		465,376		492,778		553,126		(29.0	%)
Real estate — construction		37,155		63,186		(41.2	%)		70,824		91,618		175,817		(78.9	%)
Lease financing		507		1,399		(63.8	%)		1,705		2,617		2,302		(78.0	%)

Total commercial		637,750		676,048		(5.7	%)		886,854		941,297		1,105,200		(42.3	%)
Home equity		4,975		4,515		10.2	%		4,737		3,057		6,495		(23.4	%)
Installment		272		216		25.9	%		230		703		692		(60.7	%)

Total retail		5,247		4,731		10.9	%		4,967		3,760		7,187		(27.0	%)
Residential mortgage		16,550		18,575		(10.9	%)		19,710		18,672		19,416		(14.8	%)

Total potential problem loans	$	659,547	$	699,354		(5.7	%)	$	911,531	$	963,729	$	1,131,803		(41.7	%)

N/M = Not meaningful.

Page 10

Net Interest Income Analysis - Taxable Equivalent Basis


*Associated Banc-Corp*	Nine months ended September 30, 2011							Nine months ended September 30, 2010
(in thousands)	Average Balance		Interest Income /Expense		Average Yield /Rate			Average Balance		Interest Income /Expense		Average Yield /Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	7,121,706	$	232,727		4.37	%	$	8,002,403	$	258,475		4.32	%
Residential mortgage		2,685,994		84,564		4.20			2,006,806		74,277		4.94
Retail		3,213,434		118,127		4.91			3,379,368		131,747		5.21

Total loans		13,021,134		435,418		4.47			13,388,577		464,499		4.64
Investment securities		5,658,000		136,665		3.22			5,386,201		163,834		4.06
Other short-term investments		741,438		4,324		0.78			2,001,883		6,615		0.44

Investments and other		6,399,438		140,989		2.94			7,388,084		170,449		3.08

Total earning assets		19,420,572		576,407		3.96			20,776,661		634,948		4.08
Other assets, net		2,111,598							2,047,577

Total assets	$	21,532,170						$	22,824,238

Interest-bearing liabilities:
Savings deposits	$	977,064	$	861		0.12	%	$	894,445	$	857		0.13	%
Interest-bearing demand deposits		1,878,417		2,314		0.16			2,796,295		4,968		0.24
Money market deposits		5,093,270		12,736		0.33			6,490,856		26,215		0.54
Time deposits, excluding Brokered CDs		2,678,134		32,001		1.60			3,317,251		47,294		1.91

Total interest-bearing deposits, excluding Brokered CDs		10,626,885		47,912		0.60			13,498,847		79,334		0.79
Brokered CDs		319,501		2,882		1.21			584,153		3,650		0.84

Total interest-bearing deposits		10,946,386		50,794		0.62			14,083,000		82,984		0.79
Short and long-term funding		4,182,908		48,540		1.55			2,500,326		51,131		2.73

Total interest-bearing liabilities		15,129,294		99,334		0.88			16,583,326		134,115		1.08
Noninterest-bearing demand deposits		3,288,737							3,029,719
Other liabilities		69,267							31,693
Stockholders’ equity		3,044,872							3,179,500

Total liabilities and stockholders’ equity	$	21,532,170						$	22,824,238

Net interest income and rate spread (1)			$	477,073		3.08	%			$	500,833		3.00	%

Net interest margin (1)						3.28	%						3.22	%
Taxable equivalent adjustment			$	16,067						$	17,914


*Net Interest Income Analysis - Taxable Equivalent Basis*

*Associated Banc-Corp*	Three months ended September 30, 2011							Three months ended September 30, 2010
(in thousands)	Average Balance		Interest Income /Expense		Average Yield /Rate			Average Balance		Interest Income /Expense		Average Yield /Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	7,337,527	$	79,161		4.28	%	$	7,502,980	$	82,606		4.37	%
Residential mortgage		2,869,445		29,385		4.09			2,004,284		24,025		4.78
Retail		3,169,956		38,102		4.78			3,348,527		43,121		5.12

Total loans		13,376,928		146,648		4.36			12,855,791		149,752		4.63
Investment securities		5,430,677		42,314		3.12			5,261,585		49,749		3.78
Other short-term investments		722,402		1,428		0.79			2,543,122		2,629		0.42

Investments and other		6,153,079		43,742		2.84			7,804,707		52,378		2.69

Total earning assets		19,530,007		190,390		3.88			20,660,498		202,130		3.90
Other assets, net		2,199,180							2,066,710

Total assets	$	21,729,187						$	22,727,208


Interest-bearing liabilities:
Savings deposits	$	1,013,333	$	289		0.11	%	$	910,970	$	316		0.14	%
Interest-bearing demand deposits		2,056,082		945		0.18			2,637,952		1,292		0.19
Money market deposits		5,092,120		3,841		0.30			6,824,352		9,216		0.54
Time deposits, excluding Brokered CDs		2,565,898		9,718		1.50			3,197,087		13,805		1.71

Total interest-bearing deposits, excluding Brokered CDs		10,727,433		14,793		0.55			13,570,361		24,629		0.72
Brokered CDs		260,765		851		1.29			480,074		1,250		1.03

Total interest-bearing deposits		10,988,198		15,644		0.56			14,050,435		25,879		0.73
Short and long-term funding		4,227,319		16,291		1.54			2,326,469		16,433		2.81

Total interest-bearing liabilities		15,215,517		31,935		0.83			16,376,904		42,312		1.03
Noninterest-bearing demand deposits		3,417,113							3,087,670
Other liabilities		109,379							55,892
Stockholders’ equity		2,987,178							3,206,742

Total liabilities and stockholders’ equity	$	21,729,187						$	22,727,208

Net interest income and rate spread (1)			$	158,455		3.05	%			$	159,818		2.87	%

Net interest margin (1)						3.23	%						3.08	%
Taxable equivalent adjustment			$	5,295						$	5,914

(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.

Page 11

Net Interest Income Analysis - Taxable Equivalent Basis


*Associated Banc-Corp*	Three months ended September 30, 2011							Three months ended June 30, 2011
(in thousands)	Average Balance		Interest Income / Expense		Average Yield / Rate			Average Balance		Interest Income / Expense		Average Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	7,337,527	$	79,161		4.28	%	$	7,114,930	$	77,122		4.35	%
Residential mortgage		2,869,445		29,385		4.09			2,657,740		28,032		4.22
Retail		3,169,956		38,102		4.78			3,232,234		40,033		4.96

Total loans		13,376,928		146,648		4.36			13,004,904		145,187		4.47
Investment securities		5,430,677		42,314		3.12			5,689,728		47,358		3.33
Other short-term investments		722,402		1,428		0.79			736,660		1,438		0.78

Investments and other		6,153,079		43,742		2.84			6,426,388		48,796		3.04

Total earning assets		19,530,007		190,390		3.88			19,431,292		193,983		4.00
Other assets, net		2,199,180							2,094,863

Total assets	$	21,729,187						$	21,526,155

Interest-bearing liabilities:
Savings deposits	$	1,013,333	$	289		0.11	%	$	999,748	$	308		0.12	%
Interest-bearing demand deposits		2,056,082		945		0.18			1,811,525		738		0.16
Money market deposits		5,092,120		3,841		0.30			5,039,056		4,206		0.33
Time deposits, excluding Brokered CDs		2,565,898		9,718		1.50			2,655,944		10,667		1.61

Total interest-bearing deposits, excluding Brokered CDs		10,727,433		14,793		0.55			10,506,273		15,919		0.61
Brokered CDs		260,765		851		1.29			320,741		982		1.23

Total interest-bearing deposits		10,988,198		15,644		0.56			10,827,014		16,901		0.63
Short and long-term funding		4,227,319		16,291		1.54			4,434,500		17,627		1.59

Total interest-bearing liabilities		15,215,517		31,935		0.83			15,261,514		34,528		0.91
Noninterest-bearing demand deposits		3,417,113							3,225,675
Other liabilities		109,379							62,126
Stockholders’ equity		2,987,178							2,976,840

Total liabilities and stockholders’ equity	$	21,729,187						$	21,526,155

Net interest income and rate spread (1)			$	158,455		3.05	%			$	159,455		3.09	%

Net interest margin (1)						3.23	%						3.29	%
Taxable equivalent adjustment			$	5,295						$	5,332

(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.

Financial Summary and Comparison

Associated Banc-Corp


*Period End Loan Composition*	Sep 30, 2011		Jun 30, 2011		Sep 11 vs Jun 11 % Change			Mar 31, 2011		Dec 31, 2010		Sep 30, 2010		Sep 11 vs Sep 10 % Change
Commercial and industrial	$	3,360,502	$	3,202,301		4.9	%	$	2,972,651	$	3,049,752	$	2,989,238		12.4	%
Commercial real estate — owner occupied		1,068,616		1,030,060		3.7	%		1,027,826		1,049,798		1,086,258		(1.6	%)
Lease financing		54,849		54,001		1.6	%		56,458		60,254		74,690		(26.6	%)

Commercial and business lending		4,483,967		4,286,362		4.6	%		4,056,935		4,159,804		4,150,186		8.0	%
Commercial real estate — investor		2,481,411		2,393,626		3.7	%		2,354,655		2,339,415		2,408,084		3.0	%
Real estate — construction		554,024		533,804		3.8	%		525,236		553,069		736,387		(24.8	%)

Commercial real estate lending		3,035,435		2,927,430		3.7	%		2,879,891		2,892,484		3,144,471		(3.5	%)

Total commercial		7,519,402		7,213,792		4.2	%		6,936,826		7,052,288		7,294,657		3.1	%
Home equity		2,571,404		2,594,029		(0.9	%)		2,576,736		2,523,057		2,457,461		4.6	%
Installment		572,243		589,714		(3.0	%)		605,767		695,383		721,480		(20.7	%)

Total retail		3,143,647		3,183,743		(1.3	%)		3,182,503		3,218,440		3,178,941		(1.1	%)
Residential mortgage		2,840,458		2,692,054		5.5	%		2,535,993		2,346,007		1,898,795		49.6	%

Total loans	$	13,503,507	$	13,089,589		3.2	%	$	12,655,322	$	12,616,735	$	12,372,393		9.1	%


*Period End Deposit and Customer Funding Composition*	Sep 30, 2011		Jun 30, 2011		Sep 11 vs Jun 11 % Change			Mar 31, 2011		Dec 31, 2010		Sep 30, 2010		Sep 11 vs Sep 10 % Change
Demand	$	3,711,570	$	3,218,722		15.3	%	$	3,285,604	$	3,684,965	$	3,054,121		21.5	%
Savings		1,013,195		1,007,337		0.6	%		973,122		887,236		902,077		12.3	%
Interest-bearing demand		2,071,627		1,931,519		7.3	%		1,755,367		1,870,664		2,921,700		(29.1	%)
Money market		5,205,401		4,982,492		4.5	%		4,968,510		5,434,867		6,312,912		(17.5	%)
Brokered CDs		203,827		316,670		(35.6	%)		324,045		442,640		442,209		(53.9	%)
Other time deposits		2,576,790		2,609,310		(1.2	%)		2,716,995		2,905,021		3,171,841		(18.8	%)

Total deposits		14,782,410		14,066,050		5.1	%		14,023,643		15,225,393		16,804,860		(12.0	%)
Customer repo sweeps		871,619		930,101		(6.3	%)		1,048,516		563,884		209,866		N/M
Customer repo term		1,141,450		1,147,938		(0.6	%)		887,434		—		—		N/M

Total customer funding		2,013,069		2,078,039		(3.1	%)		1,935,950		563,884		209,866		N/M

Total deposits and customer funding	$	16,795,479	$	16,144,089		4.0	%	$	15,959,593	$	15,789,277	$	17,014,726		(1.3	%)

Network transaction deposits included above in interest-bearing demand and money market		875,630		824,003		6.3	%		936,688		1,144,134		1,970,050		(55.6	%)
Brokered CDs		203,827		316,670		(35.6	%)		324,045		442,640		442,209		(53.9	%)

Total network and brokered funding		1,079,457		1,140,673		(5.4	%)		1,260,733		1,586,774		2,412,259		(55.3	%)

Net customer deposits and funding (4)		15,716,022		15,003,416		4.7	%		14,698,860		14,202,503		14,602,467		7.6	%

(4)	Total deposits and customer funding excluding total network and brokered funding.

N/M = Not meaningful.

Page 12

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