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

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Exhibit 99.1

LOGO

Associated Reports First Quarter Earnings of $0.24 per share

Net income to common shareholders of $41 million

GREEN BAY, Wis. — April 19, 2012 — Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $41 million, or $0.24 per common share, for the quarter ended March 31, 2012. This compares to net income to common shareholders of $15 million, or $0.09 per common share, for the comparable quarter ended March 31, 2011.

“We are pleased with the solid results of this quarter and remain optimistic on the outlook for our business,” said President and CEO Philip B. Flynn. “We have announced an increase to the common dividend this quarter and we remain focused on growing the company consistent with our commitment to building shareholder value through our long-term strategy for growth at Associated.”

HIGHLIGHTS

•

Net income to common shareholders of $41 million improved by 4% from the prior quarter

–

Earnings increased $26 million year-over year

–

Quarterly net income to common shareholders is at the highest level since early 2008

•

Return on tier 1 common capital for the quarter was 9.23%, compared to 3.76% a year ago

•

Quarterly dividend increased to $0.05 per common share, up from $0.01 per common share

•

Loan balances increased by a net $223 million, or 2%, during the first quarter to $14.3 billion, and have increased $1.6 billion, or 13%, from a year ago

•

Demand deposit balances increased by $60 million, or 2%, from the prior quarter, and have increased $704 million, or 21%, from a year ago

•

Net interest income of $155 million improved by 2% from the prior quarter

•

Credit metrics continued to improve:

–

Nonperforming assets declined $37 million, or 9%, from the prior quarter, and are down $176 million, or 33%, from a year ago

–

Potential problem loans declined 15% from the prior quarter, and are down 47% from a year ago


ASSOCIATED BANC-CORP REPORTS FIRST QUARTER 2012 RESULTS		PAGE 2

FIRST QUARTER 2012 FINANCIAL RESULTS

Loans

At March 31, 2012, the Company’s loan portfolio was $14.3 billion, up $223 million, or 2%, from $14.0 billion at December 31, 2011, and up $1.6 billion, or 13%, from $12.7 billion a year ago. The retail and residential mortgage portfolio grew by a net $155 million from the fourth quarter of 2011, driven by strong mortgage refinancing activity. Commercial real estate lending grew by a net $82 million on a linked-quarter basis with growth in the investor commercial real estate portfolio of $100 million partially offset by run-off in the construction portfolio of $18 million. Commercial and business lending declined by a net $15 million from the prior quarter as middle market commercial lending growth of $27 million was offset by run-off in other portfolios, including a $37 million decline in the mortgage warehouse lending portfolio.

Deposits

Total deposits of $15.7 billion at the end of the first quarter were up $563 million, or 4%, from $15.1 billion at the end of the fourth quarter. The net deposit growth during the quarter was a result of a $1.0 billion, or 20%, increase in money market deposits and a decline in brokered CD balances of $156 million coupled with a decline in other time deposits of $224 million. Demand deposit balances also increased by $60 million, or 2%, during the quarter, and are up $704 million, or 21%, from the year ago quarter.

Net Interest Income and Net Interest Margin

First quarter net interest income increased by $3 million, or 2%, from the prior quarter to $155 million. The net interest margin for the first quarter was 3.31%, an increase of 10 basis points from the prior quarter. Yields on earning assets increased by 4 basis points from the prior quarter, and the cost of interest-bearing liabilities declined by 8 basis points, contributing to the quarterly increase in overall net interest margin.

Noninterest Income and Expense

Noninterest income for the quarter was $82 million, up $8 million, or 10%, from the fourth quarter. The improvement was primarily driven by an increase in mortgage banking income which benefited from a $5 million increase in gain on sale from secondary mortgage production as well as $3 million from lower valuation expense on mortgage servicing rights.

Total noninterest expense for the quarter ended March 31, 2012 was $173 million, down $2 million, or 1%, from the fourth quarter. Personnel and occupancy expenses increased by $6 million and legal and professional fees increased by $5 million from the prior quarter, primarily due to the cost of addressing regulatory items. Offsetting the increased personnel, occupancy, and legal expenses were lower losses other than loans, reduced business development and advertising expense, and lower foreclosure and OREO expense and FDIC expense.

Credit Metrics

The Company reported another quarter of improving credit metrics with nonperforming assets down 9% to $362 million from $398 million at December 31, 2011, and down 33% from $537 million at March 31, 2011.


ASSOCIATED BANC-CORP REPORTS FIRST QUARTER 2012 RESULTS		PAGE 3

Net charge offs were $22 million for the first quarter, down 59% from $53 million for the first quarter of 2011. The Company’s allowance for loan losses was $356 million, representing an allowance equal to 2.50% of loans, and covered over 108% of nonaccrual loans at March 31, 2012.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common equity ratio of 12.49% at March 31, 2012. The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks, and also exceed the proposed Basel III guidelines.

FIRST QUARTER 2012 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 19, 2012. 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 877-317-6789. 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 412-317-6789. Participants should ask the operator for the Associated Banc-Corp first quarter 2012 earnings call.

An audio archive of the webcast will be available on the company’s website. A telephone replay will be available two hours after the completion of the call through 8:00 a.m. CT on May 21, 2012, by dialing 877-344-7529 and entering the conference ID number 10011862. The replay number for international callers is 412-317-0088.

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 over 250 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,” “outlook,” 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.

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp


	March 31,			December 31,			Seql Qtr			September 30,			June 30,			March 31,			Comp Qtr
(in thousands)	2012			2011			$ Change			2011			2011			2011			$ Change
*Assets*
Cash and due from banks	$	360,728		$	454,958		$	(94,230	)	$	410,644		$	314,682		$	299,040		$	61,688
Interest-bearing deposits in other financial institutions		344,148			154,562			189,586			250,648			777,675			498,094			(153,946	)
Federal funds sold and securities purchased under agreements to resell		7,100			7,075			25			4,180			2,400			2,015			5,085
Securities available for sale, at fair value		4,669,100			4,937,483			(268,383	)		5,453,816			5,742,034			5,883,541			(1,214,441	)
Federal Home Loan Bank and Federal
Reserve Bank stocks, at cost		177,808			191,188			(13,380	)		191,128			191,075			191,017			(13,209	)
Loans held for sale		196,570			249,195			(52,625	)		201,142			84,323			85,493			111,077
Loans		14,253,725			14,031,071			222,654			13,503,507			13,089,589			12,655,322			1,598,403
Allowance for loan losses		(356,298	)		(378,151	)		21,853			(399,723	)		(425,961	)		(454,461	)		98,163

Loans, net		13,897,427			13,652,920			244,507			13,103,784			12,663,628			12,200,861			1,696,566
Premises and equipment, net		225,164			223,736			1,428			208,301			192,506			186,329			38,835
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		68,374			67,574			800			67,970			74,872			85,200			(16,826	)
Other assets		1,038,083			1,056,358			(18,275	)		1,081,868			1,076,112			1,112,807			(74,724	)

*Total assets*	$	21,913,670		$	21,924,217		$	(10,547	)	$	21,902,649		$	22,048,475		$	21,473,565			440,105


*Liabilities and Stockholders’ Equity*
Noninterest-bearing deposits	$	3,989,156		$	3,928,792		$	60,364		$	3,711,570		$	3,218,722		$	3,285,604			703,552
Interest-bearing deposits, excl Brokered CDs		11,617,727			10,958,915			658,812			10,867,013			10,530,658			10,413,994			1,203,733
Brokered CDs		46,493			202,948			(156,455	)		203,827			316,670			324,045			(277,552	)

Total deposits		15,653,376			15,090,655			562,721			14,782,410			14,066,050			14,023,643			1,629,733
Short-term funding		1,936,219			2,514,485			(578,266	)		2,531,776			3,255,670			2,547,805			(611,586	)
Long-term funding		1,176,736			1,177,071			(335	)		1,477,408			1,484,174			1,484,177			(307,441	)
Accrued expenses and other liabilities		246,466			276,212			(29,746	)		260,436			243,433			223,226			23,240

Total liabilities		19,012,797			19,058,423			(45,626	)		19,052,030			19,049,327			18,278,851			733,946
Stockholders’ Equity
Preferred equity		63,272			63,272			—			63,272			258,051			515,238			(451,966	)
Common stock		1,750			1,746			4			1,746			1,745			1,744			6
Surplus		1,590,336			1,586,401			3,935			1,585,208			1,581,594			1,576,903			13,433
Retained earnings		1,181,247			1,148,773			32,474			1,111,080			1,079,076			1,055,344			125,903
Accumulated other comprehensive income		65,278			65,602			(324	)		89,313			79,345			45,731			19,547
Treasury stock		(1,010	)		—			(1,010	)		—			(663	)		(246	)		(764	)

Total stockholders’ equity		2,900,873			2,865,794			35,079			2,850,619			2,999,148			3,194,714			(293,841	)

*Total liabilities and stockholders’ equity*	$	21,913,670		$	21,924,217		$	(10,547	)	$	21,902,649		$	22,048,475		$	21,473,565		$	440,105

Page 1

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp


	For The Three Months Ended
	March 31,						Quarter
(in thousands, except per share amounts)	2012			2011			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	149,023		$	142,771		$	6,252			4.4	%
Interest and dividends on investment securities:
Taxable		23,029			34,652			(11,623	)		(33.5	%)
Tax-exempt		7,274			7,713			(439	)		(5.7	%)
Other interest		1,247			1,458			(211	)		(14.5	%)

Total interest income		180,573			186,594			(6,021	)		(3.2	%)
*Interest Expense*
Interest on deposits		12,036			18,249			(6,213	)		(34.0	%)
Interest on short-term funding		1,823			3,579			(1,756	)		(49.1	%)
Interest on long-term funding		12,046			11,043			1,003			9.1	%

Total interest expense		25,905			32,871			(6,966	)		(21.2	%)

*Net Interest Income*		154,668			153,723			945			0.6	%
Provision for loan losses		—			31,000			(31,000	)		(100.0	%)

Net interest income after provision for loan losses		154,668			122,723			31,945			26.0	%
*Noninterest Income*
Trust service fees		9,787			9,831			(44	)		(0.4	%)
Service charges on deposit accounts		18,042			19,064			(1,022	)		(5.4	%)
Card-based and other nondeposit fees		10,879			15,598			(4,719	)		(30.3	%)
Retail commissions		15,717			16,381			(664	)		(4.1	%)

Total core fee-based revenue		54,425			60,874			(6,449	)		(10.6	%)
Mortgage banking, net		17,654			1,845			15,809			N/M
Capital market fees, net		3,716			2,378			1,338			56.3	%
Bank owned life insurance income		4,292			3,586			706			19.7	%
Asset sale losses, net		(481	)		(1,986	)		1,505			(75.8	%)
Investment securities gains (losses), net		40			(22	)		62			(281.8	%)
Other		1,913			5,507			(3,594	)		(65.3	%)

Total noninterest income		81,559			72,182			9,377			13.0	%
*Noninterest Expense*
Personnel expense		94,078			88,930			5,148			5.8	%
Occupancy		15,179			15,275			(96	)		(0.6	%)
Equipment		5,468			4,767			701			14.7	%
Data processing		9,516			7,534			1,982			26.3	%
Business development and advertising		5,381			4,943			438			8.9	%
Other intangible amortization		1,049			1,178			(129	)		(11.0	%)
Loan expense		2,910			2,956			(46	)		(1.6	%)
Legal and professional fees		9,715			4,482			5,233			116.8	%
Losses other than loans		3,550			6,297			(2,747	)		(43.6	%)
Foreclosure / OREO expense		6,475			6,061			414			6.8	%
FDIC expense		4,870			8,244			(3,374	)		(40.9	%)
Other		14,684			13,509			1,175			8.7	%

Total noninterest expense		172,875			164,176			8,699			5.3	%

*Income before income taxes*		63,352			30,729			32,623			106.2	%
Income tax expense		20,719			7,876			12,843			163.1	%

*Net income*		42,633			22,853			19,780			86.6	%
Preferred stock dividends and discount		1,300			7,413			(6,113	)		(82.5	%)

*Net income available to common equity*	$	41,333		$	15,440		$	25,893			167.7	%


Earnings Per Common Share:
Basic	$	0.24		$	0.09		$	0.15			166.7	%
Diluted	$	0.24		$	0.09		$	0.15			166.7	%

Average Common Shares Outstanding:
Basic		173,846			173,213			633			0.4	%
Diluted		173,848			173,217			631			0.4	%

N/M = Not meaningful.

Page 2

Consolidated Statements of Income (Unaudited)—Quarterly Trend

Associated Banc-Corp


							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	1Q12			4Q11			$ Change			% Change			3Q11			2Q11			1Q11			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	149,023		$	149,832		$	(809	)		(0.5	%)	$	145,778		$	144,358		$	142,771		$	6,252			4.4	%
Interest and dividends on investment securities:
Taxable		23,029			22,855			174			0.8	%		30,513			35,351			34,652			(11,623	)		(33.5	%)
Tax-exempt		7,274			7,344			(70	)		(1.0	%)		7,376			7,504			7,713			(439	)		(5.7	%)
Other interest		1,247			1,251			(4	)		(0.3	%)		1,428			1,438			1,458			(211	)		(14.5	%)

Total interest income		180,573			181,282			(709	)		(0.4	%)		185,095			188,651			186,594			(6,021	)		(3.2	%)
*Interest Expense*
Interest on deposits		12,036			14,954			(2,918	)		(19.5	%)		15,644			16,901			18,249			(6,213	)		(34.0	%)
Interest on short-term funding		1,823			2,156			(333	)		(15.4	%)		3,039			3,637			3,579			(1,756	)		(49.1	%)
Interest on long-term funding		12,046			12,347			(301	)		(2.4	%)		13,252			13,990			11,043			1,003			9.1	%

Total interest expense		25,905			29,457			(3,552	)		(12.1	%)		31,935			34,528			32,871			(6,966	)		(21.2	%)

*Net Interest Income*		154,668			151,825			2,843			1.9	%		153,160			154,123			153,723			945			0.6	%
Provision for loan losses		—			1,000			(1,000	)		(100.0	%)		4,000			16,000			31,000			(31,000	)		(100.0	%)

Net interest income after provision for loan losses		154,668			150,825			3,843			2.5	%		149,160			138,123			122,723			31,945			26.0	%
*Noninterest Income*
Trust service fees		9,787			9,511			276			2.9	%		9,791			10,012			9,831			(44	)		(0.4	%)
Service charges on deposit accounts		18,042			17,783			259			1.5	%		19,949			19,112			19,064			(1,022	)		(5.4	%)
Card-based and other nondeposit fees		10,879			11,269			(390	)		(3.5	%)		15,291			15,747			15,598			(4,719	)		(30.3	%)
Retail commissions		15,717			14,881			836			5.6	%		15,047			16,475			16,381			(664	)		(4.1	%)

Total core fee-based revenue		54,425			53,444			981			1.8	%		60,078			61,346			60,874			(6,449	)		(10.6	%)
Mortgage banking, net		17,654			9,677			7,977			82.4	%		4,521			(3,320	)		1,845			15,809			N/M
Capital market fees, net		3,716			3,950			(234	)		(5.9	%)		3,273			(890	)		2,378			1,338			56.3	%
Bank owned life insurance income		4,292			3,820			472			12.4	%		3,990			3,500			3,586			706			19.7	%
Asset sale gains (losses), net		(481	)		525			(1,006	)		(191.6	%)		(1,179	)		(209	)		(1,986	)		1,505			(75.8	%)
Investment securities gains (losses), net		40			(310	)		350			(112.9	%)		(744	)		(36	)		(22	)		62			(281.8	%)
Other		1,913			2,750			(837	)		(30.4	%)		1,737			4,364			5,507			(3,594	)		(65.3	%)

Total noninterest income		81,559			73,856			7,703			10.4	%		71,676			64,755			72,182			9,377			13.0	%
*Noninterest Expense*
Personnel expense		94,078			89,785			4,293			4.8	%		90,377			89,203			88,930			5,148			5.8	%
Occupancy		15,179			13,796			1,383			10.0	%		14,205			12,663			15,275			(96	)		(0.6	%)
Equipment		5,468			5,286			182			3.4	%		4,851			4,969			4,767			701			14.7	%
Data processing		9,516			9,080			436			4.8	%		7,887			7,974			7,534			1,982			26.3	%
Business development and advertising		5,381			6,904			(1,523	)		(22.1	%)		5,539			5,652			4,943			438			8.9	%
Other intangible amortization		1,049			1,179			(130	)		(11.0	%)		1,179			1,178			1,178			(129	)		(11.0	%)
Loan expense		2,910			3,469			(559	)		(16.1	%)		2,600			2,983			2,956			(46	)		(1.6	%)
Legal and professional fees		9,715			4,651			5,064			108.9	%		4,289			4,783			4,482			5,233			116.8	%
Losses other than loans		3,550			11,890			(8,340	)		(70.1	%)		1,659			(1,925	)		6,297			(2,747	)		(43.6	%)
Foreclosure / OREO expense		6,475			7,493			(1,018	)		(13.6	%)		7,662			9,527			6,061			414			6.8	%
FDIC expense		4,870			6,136			(1,266	)		(20.6	%)		6,906			7,198			8,244			(3,374	)		(40.9	%)
Other		14,684			14,982			(298	)		(2.0	%)		15,006			14,681			13,509			1,175			8.7	%

Total noninterest expense		172,875			174,651			(1,776	)		(1.0	%)		162,160			158,886			164,176			8,699			5.3	%

*Income before income taxes*		63,352			50,030			13,322			26.6	%		58,676			43,992			30,729			32,623			106.2	%
Income tax expense		20,719			8,905			11,814			132.7	%		17,337			9,610			7,876			12,843			163.1	%

*Net income*		42,633			41,125			1,508			3.7	%		41,339			34,382			22,853			19,780			86.6	%
Preferred stock dividends and discount		1,300			1,300			—			0.0	%		7,305			8,812			7,413			(6,113	)		(82.5	%)

*Net income available to common equity*	$	41,333		$	39,825		$	1,508			3.8	%	$	34,034		$	25,570		$	15,440		$	25,893			167.7	%


Earnings Per Common Share:
Basic	$	0.24		$	0.23		$	0.01			4.3	%	$	0.20		$	0.15		$	0.09		$	0.15			166.7	%
Diluted	$	0.24		$	0.23		$	0.01			4.3	%	$	0.20		$	0.15		$	0.09		$	0.15			166.7	%

Average Common Shares Outstanding:
Basic		173,846			173,523			323			0.2	%		173,418			173,323			173,213			633			0.4	%
Diluted		173,848			173,523			325			0.2	%		173,418			173,327			173,217			631			0.4	%

N/M = Not meaningful.

Page 3

Selected Quarterly Information

Associated Banc-Corp


(in thousands, except per share and full time equivalent employee data)	1st Qtr 2012			4th Qtr 2011			3rd Qtr 2011			2nd Qtr 2011			1st Qtr 2011
*Summary of Operations*
Net interest income	$	154,668		$	151,825		$	153,160		$	154,123		$	153,723
Provision for loan losses		—			1,000			4,000			16,000			31,000
Asset sale gains (losses), net		(481	)		525			(1,179	)		(209	)		(1,986	)
Investment securities gains (losses), net		40			(310	)		(744	)		(36	)		(22	)
Noninterest income (excluding securities & asset gains)		82,000			73,641			73,599			65,000			74,190
Noninterest expense		172,875			174,651			162,160			158,886			164,176
Income before income taxes		63,352			50,030			58,676			43,992			30,729
Income tax expense		20,719			8,905			17,337			9,610			7,876
Net income		42,633			41,125			41,339			34,382			22,853
Net income available to common equity		41,333			39,825			34,034			25,570			15,440
Taxable equivalent adjustment		5,303			5,307			5,295			5,332			5,440

*Per Common Share Data*
Net income:
Basic	$	0.24		$	0.23		$	0.20		$	0.15		$	0.09
Diluted		0.24			0.23			0.20			0.15			0.09
Dividends		0.05			0.01			0.01			0.01			0.01
Market Value:
High	$	14.63		$	11.78		$	14.17		$	15.02		$	15.36
Low		11.43			9.15			8.95			13.06			13.83
Close		13.96			11.17			9.30			13.90			14.85
Book value		16.32			16.15			16.07			15.81			15.46
Tangible book value		10.87			10.68			10.59			10.33			9.97

*Performance Ratios (annualized)*
Earning assets yield		3.85	%		3.81	%		3.88	%		4.00	%		4.01	%
Interest-bearing liabilities rate		0.70			0.78			0.83			0.91			0.89
Net interest margin		3.31			3.21			3.23			3.29			3.32
Return on average assets		0.79			0.75			0.75			0.64			0.43
Return on average equity		5.93			5.71			5.49			4.63			2.92
Return on average Tier 1 common equity (1)		9.23			8.96			7.83			6.07			3.76
Efficiency ratio (2)		71.44			75.68			69.88			70.79			70.36
Effective tax rate		32.70			17.80			29.55			21.84			25.63
Dividend payout ratio (3)		20.83			4.35			5.00			6.67			11.11

*Average Balances*
Assets	$	21,659,139		$	21,755,870		$	21,729,187		$	21,526,155		$	21,336,858
Earning assets		19,371,729			19,506,627			19,530,007			19,431,292			19,297,866
Interest-bearing liabilities		14,920,413			15,095,689			15,215,517			15,261,514			14,907,465
Loans (4)		14,310,441			14,043,585			13,376,928			13,004,904			12,673,844
Deposits		15,000,567			14,893,469			14,405,311			14,052,689			14,245,614
Short and long-term funding		3,603,700			3,857,252			4,227,319			4,434,500			3,883,122
Common stockholders’ equity		2,826,913			2,792,823			2,765,023			2,704,909			2,657,956
Stockholders’ equity		2,890,185			2,856,095			2,987,178			2,976,840			3,172,636
Common stockholders’ equity / assets		13.05	%		12.84	%		12.72	%		12.57	%		12.46	%
Stockholders’ equity / assets		13.34	%		13.13	%		13.75	%		13.83	%		14.87	%

*At Period End*
Assets	$	21,913,670		$	21,924,217		$	21,902,649		$	22,048,475		$	21,473,565
Loans		14,253,725			14,031,071			13,503,507			13,089,589			12,655,322
Allowance for loan losses		356,298			378,151			399,723			425,961			454,461
Goodwill		929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net		50,001			48,152			47,370			53,093			62,243
Other intangible assets		18,373			19,422			20,600			21,779			22,957
Deposits		15,653,376			15,090,655			14,782,410			14,066,050			14,023,643
Short and long-term funding		3,112,955			3,691,556			4,009,184			4,739,844			4,031,982
Stockholders’ equity		2,900,873			2,865,794			2,850,619			2,999,148			3,194,714
Stockholders’ equity / assets		13.24	%		13.07	%		13.01	%		13.60	%		14.88	%
Tangible common equity / tangible assets (5)		9.01	%		8.84	%		8.77	%		8.49	%		8.42	%
Tangible equity / tangible assets (6)		9.32	%		9.14	%		9.07	%		9.71	%		10.93	%
Tier 1 common equity / risk-weighted assets (7)		12.49	%		12.24	%		12.44	%		12.61	%		12.65	%
Tier 1 leverage ratio		10.03	%		9.81	%		9.62	%		10.46	%		11.65	%
Tier 1 risk-based capital ratio		14.33	%		14.08	%		14.35	%		16.03	%		18.08	%
Total risk-based capital ratio		15.78	%		15.53	%		15.81	%		17.50	%		19.56	%
Shares outstanding, end of period		173,923			173,575			173,474			173,374			173,274

*Selected trend information*
Average full time equivalent employees		5,045			5,056			4,980			4,977			4,929
Trust assets under management, at market value	$	6,000,000		$	5,600,000		$	5,300,000		$	5,700,000		$	5,900,000
Mortgage loans originated for sale during period		563,688			843,614			470,530			250,880			290,013
Mortgage portfolio serviced for others		7,284,000			7,321,000			7,281,000			7,367,000			7,476,000
Mortgage servicing rights, net / Portfolio serviced for others		0.69	%		0.66	%		0.65	%		0.72	%		0.83	%

(1)	Return on average Tier 1 common equity = Net income available to common equity divided by average Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities.

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 4


Selected Asset Quality Information Associated Banc-Corp (in thousands)	Mar 31, 2012			Dec 31, 2011			Mar 12 vs Dec 11 % Change			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Mar 12 vs Mar 11 % Change
*Allowance for Loan Losses*
Beginning balance	$	378,151		$	399,723			(5.4	%)	$	425,961		$	454,461		$	476,813			(20.7	%)
Provision for loan losses		—			1,000			(100.0	%)		4,000			16,000			31,000			(100.0	%)
Charge offs		(31,259	)		(34,056	)		(8.2	%)		(38,155	)		(52,365	)		(65,156	)		(52.0	%)
Recoveries		9,406			11,484			(18.1	%)		7,917			7,865			11,804			(20.3	%)

Net charge offs		(21,853	)		(22,572	)		(3.2	%)		(30,238	)		(44,500	)		(53,352	)		(59.0	%)

Ending balance	$	356,298		$	378,151			(5.8	%)	$	399,723		$	425,961		$	454,461			(21.6	%)

Reserve for losses on unfunded commitments	$	15,600		$	14,700			6.1	%	$	14,900		$	14,900		$	17,800			(12.4	%)

*Net Charge Offs*	Mar 31, 2012			Dec 31, 2011			Mar 12 vs Dec 11 % Change			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Mar 12 vs Mar 11 % Change
Commercial and industrial	$	3,872		$	231			N/M		$	3,741		$	14,026		$	4,314			(10.2	%)
Commercial real estate—owner occupied		415			539			(23.0	%)		134			4,436			1,867			(77.8	%)
Lease financing		(1,836	)		19			N/M			(1,889	)		60			28			N/M

Commercial and business lending		2,451			789			210.6	%		1,986			18,522			6,209			(60.5	%)
Commercial real estate—investor		7,354			2,394			207.2	%		10,472			4,941			6,006			22.4	%
Real estate—construction		230			7,088			(96.8	%)		5,646			6,031			11,936			(98.1	%)

Commercial real estate lending		7,584			9,482			(20.0	%)		16,118			10,972			17,942			(57.7	%)

Total commercial		10,035			10,271			(2.3	%)		18,104			29,494			24,151			(58.4	%)
Home equity		8,950			8,113			10.3	%		8,736			8,251			14,322			(37.5	%)
Installment⁽¹⁾		101			452			(77.7	%)		764			664			12,670			(99.2	%)

Total retail		9,051			8,565			5.7	%		9,500			8,915			26,992			(66.5	%)
Residential mortgage		2,767			3,736			(25.9	%)		2,634			6,091			2,209			25.3	%

Total net charge offs	$	21,853		$	22,572			(3.2	%)	$	30,238		$	44,500		$	53,352			(59.0	%)


Net Charge Offs to Average Loans (in basis points) *	Mar 31, 2012			Dec 31, 2011						Sep 30, 2011			Jun 30, 2011			Mar 31, 2011
Commercial and industrial		42			3						46			180			60
Commercial real estate—owner occupied		16			20						5			174			72
Lease financing		N/M			14						N/M			44			20

Commercial and business lending		20			7						18			177			63
Commercial real estate—investor		113			38						169			83			104
Real estate—construction		16			502						407			454			N/M

Commercial real estate lending		96			122						213			151			252

Total commercial		50			53						98			166			142
Home equity		144			127						134			127			227
Installment		7			32						52			42			759

Total retail		119			110						119			111			338
Residential mortgage		34			46						36			92			35

Total net charge offs		61			64						90			137			171


*Credit Quality*	Mar 31, 2012			Dec 31, 2011			Mar 12 vs Dec 11 % Change			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Mar 12 vs Mar 11 % Change
Nonaccrual loans	$	327,085		$	356,772			(8.3	%)	$	403,392		$	467,611		$	488,321			(33.0	%)
Other real estate owned (OREO)		34,425			41,571			(17.2	%)		42,076			45,712			49,019			(29.8	%)

Total nonperforming assets	$	361,510		$	398,343			(9.2	%)	$	445,468		$	513,323		$	537,340			(32.7	%)

Loans 90 or more days past due and still accruing		2,497			4,925			(49.3	%)		1,220			12,123			9,380			(73.4	%)
Restructured loans (accruing)		120,719			113,164			6.7	%		113,083			100,343			88,193			36.9	%

Allowance for loan losses / loans		2.50	%		2.70	%					2.96	%		3.25	%		3.59	%
Allowance for loan losses / nonaccrual loans		108.93			105.99						99.09			91.09			93.07
Nonaccrual loans / total loans		2.29			2.54						2.99			3.57			3.86
Nonperforming assets / total loans plus OREO		2.53			2.83						3.29			3.91			4.23
Nonperforming assets / total assets		1.65			1.82						2.03			2.33			2.50
Net charge offs / average loans (annualized)		0.61			0.64						0.90			1.37			1.71
Year-to-date net charge offs / average loans		0.61			1.13						1.32			1.54			1.71

Nonaccrual loans by type:
Commercial and industrial	$	50,641		$	56,075			(9.7	%)	$	61,256		$	71,183		$	76,780			(34.0	%)
Commercial real estate—owner occupied		31,888			35,718			(10.7	%)		47,202			59,725			57,168			(44.2	%)
Lease financing		9,040			10,644			(15.1	%)		11,667			12,898			15,270			(40.8	%)

Commercial and business lending		91,569			102,437			(10.6	%)		120,125			143,806			149,218			(38.6	%)
Commercial real estate—investor		89,030			99,352			(10.4	%)		97,691			133,770			129,379			(31.2	%)
Real estate—construction		36,471			41,806			(12.8	%)		72,300			72,782			84,903			(57.0	%)

Commercial real estate lending		125,501			141,158			(11.1	%)		169,991			206,552			214,282			(41.4	%)

Total commercial		217,070			243,595			(10.9	%)		290,116			350,358			363,500			(40.3	%)
Home equity		44,628			46,907			(4.9	%)		46,119			46,777			49,618			(10.1	%)
Installment		2,627			2,715			(3.2	%)		3,195			3,724			4,949			(46.9	%)

Total retail		47,255			49,622			(4.8	%)		49,314			50,501			54,567			(13.4	%)
Residential mortgage		62,760			63,555			(1.3	%)		63,962			66,752			70,254			(10.7	%)

Total nonaccrual loans	$	327,085		$	356,772			(8.3	%)	$	403,392		$	467,611		$	488,321			(33.0	%)

*	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 5


*Selected Asset Quality Information (continued)* *Associated Banc-Corp*
(in thousands)	Mar 31, 2012		Dec 31, 2011		Mar 12 vs Dec 11 % Change			Sep 30, 2011		Jun 30, 2011		Mar 31, 2011		Mar 12 vs Mar 11 % Change
*Restructured loans (accruing)*
Commercial and industrial	$	25,622	$	22,552		13.6	%	$	23,020	$	22,760	$	16,047		59.7	%
Commercial real estate—owner occupied		6,926		8,138		(14.9	%)		5,439		1,579		382		N/M
Lease financing		—		—		0.0	%		—		—		—		0.0	%

Commercial and business lending		32,548		30,690		6.1	%		28,459		24,339		16,429		98.1	%
Commercial real estate—investor		45,845		43,417		5.6	%		43,453		34,612		33,784		35.7	%
Real estate—construction		11,770		10,977		7.2	%		10,707		10,706		7,859		49.8	%

Commercial real estate lending		57,615		54,394		5.9	%		54,160		45,318		41,643		38.4	%

Total commercial		90,163		85,084		6.0	%		82,619		69,657		58,072		55.3	%
Home equity		9,092		8,950		1.6	%		10,556		11,453		11,630		(21.8	%)
Installment		999		1,015		(1.6	%)		965		1,017		1,149		(13.1	%)

Total retail		10,091		9,965		1.3	%		11,521		12,470		12,779		(21.0	%)
Residential mortgage		20,465		18,115		13.0	%		18,943		18,216		17,342		18.0	%

Total restructured loans (accruing)	$	120,719	$	113,164		6.7	%	$	113,083	$	100,343	$	88,193		36.9	%

Restructured loans in nonaccrual loans (not included above)	$	79,946	$	87,493		(8.6	%)	$	80,063	$	71,084	$	49,352		62.0	%

*Loans Past Due 30-89 Days*	Mar 31, 2012		Dec 31, 2011		Mar 12 vs Dec 11 % Change			Sep 30, 2011		Jun 30, 2011		Mar 31, 2011		Mar 12 vs Mar 11 % Change
Commercial and industrial	$	12,643	$	8,743		44.6	%	$	6,255	$	7,581	$	36,205		(65.1	%)
Commercial real estate—owner occupied		7,532		7,092		6.2	%		29,409		33,753		21,820		(65.5	%)
Lease financing		40		104		(61.5	%)		507		79		135		(70.4	%)

Commercial and business lending		20,215		15,939		26.8	%		36,171		41,413		58,160		(65.2	%)
Commercial real estate—investor		8,313		4,970		67.3	%		70,136		27,487		18,717		(55.6	%)
Real estate—construction		1,736		996		74.3	%		5,493		13,217		3,410		(49.1	%)

Commercial real estate lending		10,049		5,966		68.4	%		75,629		40,704		22,127		(54.6	%)

Total commercial		30,264		21,905		38.2	%		111,800		82,117		80,287		(62.3	%)
Home equity		18,007		12,189		47.7	%		18,165		14,818		14,808		21.6	%
Installment		2,813		2,592		8.5	%		1,956		3,851		2,714		3.6	%

Total retail		20,820		14,781		40.9	%		20,121		18,669		17,522		18.8	%
Residential mortgage		10,114		7,224		40.0	%		12,114		12,573		7,940		27.4	%

Total loans past due 30-89 days	$	61,198	$	43,910		39.4	%	$	144,035	$	113,359	$	105,749		(42.1	%)


*Potential Problem Loans*	Mar 31, 2012		Dec 31, 2011		Mar 12 vs Dec 11 % Change			Sep 30, 2011		Jun 30, 2011		Mar 31, 2011		Mar 12 vs Mar 11 % Change
Commercial and industrial	$	157,778	$	153,306		2.9	%	$	207,351	$	229,407	$	348,949		(54.8	%)
Commercial real estate—owner occupied		112,673		136,366		(17.4	%)		140,406		145,622		172,662		(34.7	%)
Lease financing		487		158		208.2	%		507		1,399		1,705		(71.4	%)

Commercial and business lending		270,938		289,830		(6.5	%)		348,264		376,428		523,316		(48.2	%)
Commercial real estate—investor		167,339		230,206		(27.3	%)		252,331		236,434		292,714		(42.8	%)
Real estate—construction		27,654		27,649		0.0	%		37,155		63,186		70,824		(61.0	%)

Commercial real estate lending		194,993		257,855		(24.4	%)		289,486		299,620		363,538		(46.4	%)

Total commercial		465,931		547,685		(14.9	%)		637,750		676,048		886,854		(47.5	%)
Home equity		4,441		5,451		(18.5	%)		4,975		4,515		4,737		(6.2	%)
Installment		142		233		(39.1	%)		272		216		230		(38.3	%)

Total retail		4,583		5,684		(19.4	%)		5,247		4,731		4,967		(7.7	%)
Residential mortgage		9,580		13,037		(26.5	%)		16,550		18,575		19,710		(51.4	%)

Total potential problem loans	$	480,094	$	566,406		(15.2	%)	$	659,547	$	699,354	$	911,531		(47.3	%)

N/M = Not meaningful.

Page 6

Net Interest Income Analysis—Taxable Equivalent Basis

Associated Banc-Corp


	Three months ended March 31, 2012							Three months ended March 31, 2011
	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 and business lending	$	4,828,953	$	48,985		4.08	%	$	4,022,566	$	44,421		4.47	%
Commercial real estate lending		3,187,150		34,502		4.35			2,885,375		32,023		4.49

Total commercial		8,016,103		83,487		4.19		$	6,907,941	$	76,444		4.48
Residential mortgage		3,239,087		30,964		3.83			2,527,035		27,147		4.31
Retail		3,055,251		35,511		4.67			3,238,868		39,992		4.98

Total loans		14,310,441		149,962		4.21			12,673,844		143,583		4.58
Investment securities		4,611,600		34,667		3.01			5,858,293		46,993		3.21
Other short-term investments		449,688		1,247		1.11			765,729		1,458		0.76

Investments and other		5,061,288		35,914		2.84			6,624,022		48,451		2.93

Total earning assets		19,371,729		185,876		3.85			19,297,866		192,034		4.01
Other assets, net		2,287,410							2,038,992

Total assets	$	21,659,139						$	21,336,858

Interest-bearing liabilities:
Savings deposits	$	1,029,390	$	185		0.07	%	$	917,053	$	264		0.12	%
Interest-bearing demand deposits		2,114,454		944		0.18			1,764,439		631		0.15
Money market deposits		5,688,567		3,558		0.25			5,149,261		4,688		0.37
Time deposits, excluding Brokered CDs		2,371,049		7,043		1.19			2,815,301		11,616		1.67

Total interest-bearing deposits, excluding Brokered CDs		11,203,460		11,730		0.42			10,646,054		17,199		0.66
Brokered CDs		113,253		306		1.09			378,289		1,050		1.13

Total interest-bearing deposits		11,316,713		12,036		0.43			11,024,343		18,249		0.67
Short and long-term funding		3,603,700		13,869		1.54			3,883,122		14,622		1.52

Total interest-bearing liabilities		14,920,413		25,905		0.70			14,907,465		32,871		0.89
Noninterest-bearing demand deposits		3,683,854							3,221,271
Other liabilities		164,687							35,486
Stockholders’ equity		2,890,185							3,172,636

Total liabilities and stockholders’ equity	$	21,659,139						$	21,336,858


Net interest income and rate spread (1)			$	159,971		3.15	%			$	159,163		3.12	%

Net interest margin (1)						3.31	%						3.32	%
Taxable equivalent adjustment			$	5,303						$	5,440

Net Interest Income Analysis—Taxable Equivalent Basis

Associated Banc-Corp


	Three months ended March 31, 2012							Three months ended December 31, 2011
	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 and business lending	$	4,828,953	$	48,985		4.08	%	$	4,638,160	$	48,243		4.13	%
Commercial real estate lending		3,187,150		34,502		4.35			3,090,643		34,181		4.39

Total commercial		8,016,103		83,487		4.19		$	7,728,803	$	82,424		4.23
Residential mortgage		3,239,087		30,964		3.83			3,216,466		31,643		3.93
Retail		3,055,251		35,511		4.67			3,098,316		36,666		4.71

Total loans		14,310,441		149,962		4.21			14,043,585		150,733		4.27
Investment securities		4,611,600		34,667		3.01			5,020,429		34,605		2.76
Other short-term investments		449,688		1,247		1.11			442,613		1,251		1.13

Investments and other		5,061,288		35,914		2.84			5,463,042		35,856		2.63

Total earning assets		19,371,729		185,876		3.85			19,506,627		186,589		3.81
Other assets, net		2,287,410							2,249,243

Total assets	$	21,659,139						$	21,755,870

Interest-bearing liabilities:
Savings deposits	$	1,029,390	$	185		0.07	%	$	1,017,271	$	230		0.09	%
Interest-bearing demand deposits		2,114,454		944		0.18			2,152,518		1,115		0.21
Money market deposits		5,688,567		3,558		0.25			5,308,174		3,649		0.27
Time deposits, excluding Brokered CDs		2,371,049		7,043		1.19			2,557,120		9,256		1.44

Total interest-bearing deposits, excluding Brokered CDs		11,203,460		11,730		0.42			11,035,083		14,250		0.51
Brokered CDs		113,253		306		1.09			203,354		704		1.37

Total interest-bearing deposits		11,316,713		12,036		0.43			11,238,437		14,954		0.53
Short and long-term funding		3,603,700		13,869		1.54			3,857,252		14,503		1.50

Total interest-bearing liabilities		14,920,413		25,905		0.70			15,095,689		29,457		0.78
Noninterest-bearing demand deposits		3,683,854							3,655,032
Other liabilities		164,687							149,054
Stockholders’ equity		2,890,185							2,856,095

Total liabilities and stockholders’ equity	$	21,659,139						$	21,755,870


Net interest income and rate spread (1)			$	159,971		3.15	%			$	157,132		3.03	%

Net interest margin (1)						3.31	%						3.21	%
Taxable equivalent adjustment			$	5,303						$	5,307

(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 7

Financial Summary and Comparison Associated Banc-Corp

Period End Loan Composition (in thousands)



					Mar 12 vs Dec 11									Mar 12 vs Mar 11
	Mar 31, 2012		Dec 31, 2011		% Change			Sept 30, 2011		Jun 30, 2011		Mar 31, 2011		% Change
Commercial and industrial	$	3,719,016	$	3,724,736		(0.2	%)	$	3,360,502	$	3,202,301	$	2,972,651		25.1	%
Commercial real estate—owner occupied		1,074,755		1,086,829		(1.1	%)		1,068,616		1,030,060		1,027,826		4.6	%
Lease financing		61,208		58,194		5.2	%		54,849		54,001		56,458		8.4	%

Commercial and business lending		4,854,979		4,869,759		(0.3	%)		4,483,967		4,286,362		4,056,935		19.7	%
Commercial real estate—investor		2,664,251		2,563,767		3.9	%		2,481,411		2,393,626		2,354,655		13.1	%
Real estate—construction		565,953		584,046		(3.1	%)		554,024		533,804		525,236		7.8	%

Commercial real estate lending		3,230,204		3,147,813		2.6	%		3,035,435		2,927,430		2,879,891		12.2	%

Total commercial		8,085,183		8,017,572		0.8	%		7,519,402		7,213,792		6,936,826		16.6	%
Home equity		2,501,770		2,504,704		(0.1	%)		2,571,404		2,594,029		2,576,736		(2.9	%)
Installment		537,628		557,782		(3.6	%)		572,243		589,714		605,767		(11.2	%)

Total retail		3,039,398		3,062,486		(0.8	%)		3,143,647		3,183,743		3,182,503		(4.5	%)
Residential mortgage		3,129,144		2,951,013		6.0	%		2,840,458		2,692,054		2,535,993		23.4	%

Total loans	$	14,253,725	$	14,031,071		1.6	%	$	13,503,507	$	13,089,589	$	12,655,322		12.6	%

Period End Deposit and Customer Funding Composition (in thousands)


					Mar 12 vs Dec 11									Mar 12 vs Mar 11
	Mar 31, 2012		Dec 31, 2011		% Change			Sept 30, 2011		Jun 30, 2011		Mar 31, 2011		% Change
Demand	$	3,989,156	$	3,928,792		1.5	%	$	3,711,570	$	3,218,722	$	3,285,604		21.4	%
Savings		1,098,975		986,766		11.4	%		1,013,195		1,007,337		973,122		12.9	%
Interest-bearing demand		2,040,900		2,297,454		(11.2	%)		2,071,627		1,931,519		1,755,367		16.3	%
Money market		6,176,981		5,150,275		19.9	%		5,205,401		4,982,492		4,968,510		24.3	%
Brokered CDs		46,493		202,948		(77.1	%)		203,827		316,670		324,045		(85.7	%)
Other time deposits		2,300,871		2,524,420		(8.9	%)		2,576,790		2,609,310		2,716,995		(15.3	%)

Total deposits		15,653,376		15,090,655		3.7	%		14,782,410		14,066,050		14,023,643		11.6	%
Customer repo sweeps		635,697		664,624		(4.4	%)		871,619		930,101		1,048,516		(39.4	%)
Customer repo term		509,332		695,131		(26.7	%)		1,141,450		1,147,938		887,434		(42.6	%)

Total customer funding		1,145,029		1,359,755		(15.8	%)		2,013,069		2,078,039		1,935,950		(40.9	%)

Total deposits and customer funding	$	16,798,405	$	16,450,410		2.1	%	$	16,795,479	$	16,144,089	$	15,959,593		5.3	%

Network transaction deposits included above in interest-bearing demand and money market		1,171,679		875,052		33.9	%		875,630		824,003		936,688		25.1	%
Brokered CDs		46,493		202,948		(77.1	%)		203,827		316,670		324,045		(85.7	%)

Total network and brokered funding		1,218,172		1,078,000		13.0	%		1,079,457		1,140,673		1,260,733		(3.4	%)

Net customer deposits and funding (1)		15,580,233		15,372,410		1.4	%		15,716,022		15,003,416		14,698,860		6.0	%

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

Page 8

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