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

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Exhibit 99.1

LOGO

NEWS RELEASE

Investor Contact:

Tim Sedabres, Vice President, Finance

920-491-7059

Media Contact:

Autumn Latimore, Senior Vice President, Public Relations Director

414-278-1860

Associated Reports Second Quarter Earnings of $0.24 per share

Net income to common shareholders of $42 million

GREEN BAY, Wis. — July 19, 2012 –– Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $42 million, or $0.24 per common share, for the quarter ended June 30, 2012. This compares to net income to common shareholders of $26 million, or $0.15 per common share, for the comparable quarter ended June 30, 2011.

For the first six months of 2012, Associated reported net income to common shareholders of $83 million, or $0.48 per common share. This compares to net income to common shareholders of $41 million, or $0.24 per common share, for the comparable year ago period.

“We are pleased to report another quarter of improving results and business prospects,” said President and CEO Philip B. Flynn. “We remain focused on strengthening our franchise and deploying our capital in a disciplined manner, consistent with our commitment to building long-term shareholder value at Associated.”

HIGHLIGHTS

•

Net income to common shareholders of $42 million

•

Quarterly net income to common increased $16 million, or 64%, year-over-year

•

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

•

Loan balances increased by a net $445 million, or 3%, during the second quarter to $14.7 billion, and have increased by $1.6 billion, or 12%, from a year ago

•

Commercial and business lending balances are 23% higher than a year ago

•

All of the net loan growth during the quarter came from commercial portfolios as $121 million of retail and residential mortgage loans were sold from the portfolio during the quarter

•

Credit metrics continued to improve with levels of nonaccrual loans, potential problem loans, and delinquent loans all declining during the quarter

•

Completed the previously announced consolidation of 20 branches and closed on the sale of three additional branches in rural western Illinois during the quarter

•

Repurchased $30 million of common stock and redeemed $25 million of outstanding 7.625% Trust Preferred securities during the quarter

•

Return on Tier 1 common equity for the quarter of 9.26%, compared to 6.07% a year ago

•

Capital ratios remain very strong with a Tier 1 common equity ratio of 12.04%

– More –

SECOND QUARTER 2012 FINANCIAL RESULTS

Loans

At June 30, 2012, the Company’s loan portfolio was $14.7 billion, up $445 million, or 3%, from $14.3 billion at March 31, 2012, and up $1.6 billion, or 12%, from $13.1 billion a year ago. Commercial and business lending balances increased by $401 million, or 8%, from the prior quarter and accounted for the majority of the quarter’s net loan growth. Commercial real estate lending balances grew by a net $193 million or 6% on a linked-quarter basis. The residential mortgage portfolio experienced net shrinkage of $50 million during the quarter as the Company sold $109 million of residential mortgage loans from portfolio. The retail portfolio declined by a net $99 million during the quarter as consumers continued to refinance equity loans into new first mortgages.

Deposits

Average deposits of $15.1 billion were up slightly from the first quarter, and have increased by $1 billion, or 7%, from a year ago. Total deposits of $15.1 billion at the end of the second quarter were down from first quarter levels, but essentially flat compared to prior year-end and up year-over-year. Period end core checking and savings account balances are up more than 18% from a year ago. Deposit trends were negatively impacted during the quarter by the continued reduction of collateralized public funds deposits, reduced retail and brokered CD balances, and the sale of 3 retail branches with $114 million of related deposits.

Net Interest Income and Net Interest Margin

Second quarter net interest income of $154 million was flat compared to both the prior quarter and the year-ago quarter. This stability in net interest income is reflective of the relatively consistent level of interest-earning assets over the past year. The net interest margin for the quarter was 3.30%. While yields on earning assets decreased by 5 basis points from the prior quarter, the cost of deposits and interest-bearing liabilities also declined, contributing to a net decrease in overall net interest margin of just 1 basis point compared to the prior quarter.

Noninterest Income and Expense

Noninterest income for the quarter was $76 million, down $2 million, or 3%, from the first quarter. The Company recorded a $6 million write-down on software placed into production during the quarter. Income from fee-based businesses was flat, as insurance, card-based fees, trust service fees and brokerage revenue, posted modest increases in income, offset by lower service charges on deposit accounts and capital markets income compared to the prior quarter. The Company also completed the sale of 3 retail branches in rural western Illinois that resulted in a net $6 million gain during the quarter. Other notable factors impacting noninterest income compared to the prior quarter include a $3 million impairment charge on certain limited partnership investments, a $1 million decrease in bank owned life insurance income and reduced net mortgage banking income of $1 million.

– More –

Total noninterest expense for the quarter ended June 30, 2012 was $166 million, down $4 million, or 2%, from the first quarter. Personnel and occupancy expenses decreased by $2 million from the prior quarter while data processing expense increased by $2 million from the first quarter due to increased software and systems costs during the quarter. Other expenses were lower as the Company settled with and received $4 million from its insurance carrier during the quarter as reimbursement for costs previously incurred related to the proposed settlement of an ongoing legal matter.

Credit Metrics

The Company reported another quarter of improving credit metrics with nonaccrual loans down 3%, to $318 million compared to the first quarter, and down 32%, from $468 million a year ago. Potential problem loans declined 15% from the prior quarter to $410 million, and declined 41%, from $699 million a year ago.

Net charge offs were $24 million for the second quarter, an increase of $2 million from the first quarter, but were 47% lower than a year ago. The Company’s allowance for loan losses was $333 million, representing an allowance equal to 2.26% of loans, and which represented a coverage ratio of over 104% of nonaccrual loans at June 30, 2012.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common equity ratio of 12.04% at June 30, 2012. The Company’s capital ratios continue to be well in excess of “well-capitalized” regulatory benchmarks.

SECOND 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, July 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 second 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 August 20, 2012, by dialing 877-344-7529 and entering the conference ID number 10015418. 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, publically-traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services through more than 250 banking locations serving more than 150 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

– More –

FORWARD LOOKING STATEMENTS

Statements made in this document which 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. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.

# # #

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp


(in thousands)	June 30, 2012			March 31, 2012			Seql Qtr $ Change			December 31, 2011			September 30, 2011			June 30, 2011			Comp Qtr $ Change
*Assets*
Cash and due from banks	$	414,760		$	360,728		$	54,032		$	454,958		$	410,644		$	314,682		$	100,078
Interest-bearing deposits in other financial institutions		180,050			344,148			(164,098	)		154,562			250,648			777,675			(597,625	)
Federal funds sold and securities purchased under agreements to resell		3,800			7,100			(3,300	)		7,075			4,180			2,400			1,400
Securities available for sale, at fair value		4,521,436			4,669,100			(147,664	)		4,937,483			5,453,816			5,742,034			(1,220,598	)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		176,041			177,808			(1,767	)		191,188			191,128			191,075			(15,034	)
Loans held for sale		157,481			196,570			(39,089	)		249,195			201,142			84,323			73,158
Loans		14,698,902			14,253,725			445,177			14,031,071			13,503,507			13,089,589			1,609,313
Allowance for loan losses		(332,658	)		(356,298	)		23,640			(378,151	)		(399,723	)		(425,961	)		93,303

Loans, net		14,366,244			13,897,427			468,817			13,652,920			13,103,784			12,663,628			1,702,616
Premises and equipment, net		225,245			225,164			81			223,736			208,301			192,506			32,739
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		64,812			68,374			(3,562	)		67,574			67,970			74,872			(10,060	)
Trading assets		73,484			69,081			4,403			73,253			76,694			56,991			16,493
Other assets		968,579			969,002			(423	)		983,105			1,005,174			1,019,121			(50,542	)

*Total assets*	$	22,081,100		$	21,913,670		$	167,430		$	21,924,217		$	21,902,649		$	22,048,475		$	32,625

*Liabilities and Stockholders’ Equity*
Noninterest-bearing deposits	$	3,874,429		$	3,989,156		$	(114,727	)	$	3,928,792		$	3,711,570		$	3,218,722		$	655,707
Interest-bearing deposits		11,232,442			11,664,220			(431,778	)		11,161,863			11,070,840			10,847,328			385,114

Total deposits		15,106,871			15,653,376			(546,505	)		15,090,655			14,782,410			14,066,050			1,040,821
Federal funds purchased and securities sold under agreements to repurchase		1,253,270			1,236,219			17,051			1,514,485			2,213,364			2,141,583			(888,313	)
Other short-term borrowed funds		1,400,000			700,000			700,000			1,000,000			318,412			1,114,087			285,913
Junior subordinated debentures, net		189,849			215,573			(25,724	)		215,628			215,683			215,738			(25,889	)
Other long-term borrowed funds		960,880			961,163			(283	)		961,443			1,261,725			1,268,436			(307,556	)
Trading liabilities		80,107			75,130			4,977			80,046			84,376			64,936			15,171
Accrued expenses and other liabilities		180,502			171,336			9,166			196,166			176,060			178,497			2,005

Total liabilities		19,171,479			19,012,797			158,682			19,058,423			19,052,030			19,049,327			122,152
Stockholders’ Equity
Preferred equity		63,272			63,272			—			63,272			63,272			258,051			(194,779	)
Common stock		1,750			1,750			—			1,746			1,746			1,745			5
Surplus		1,594,995			1,590,336			4,659			1,586,401			1,585,208			1,581,594			13,401
Retained earnings		1,213,735			1,181,247			32,488			1,148,773			1,111,080			1,079,076			134,659
Accumulated other comprehensive income		66,579			65,278			1,301			65,602			89,313			79,345			(12,766	)
Treasury stock		(30,710	)		(1,010	)		(29,700	)		—			—			(663	)		(30,047	)

Total stockholders’ equity		2,909,621			2,900,873			8,748			2,865,794			2,850,619			2,999,148			(89,527	)

*Total liabilities and stockholders’ equity*	$	22,081,100		$	21,913,670		$	167,430		$	21,924,217		$	21,902,649		$	22,048,475		$	32,625

Page 1

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp


	For The Three Months Ended June 30,						Quarter						For The Six Months Ended, June 30,						Year-to-Date
(in thousands, except per share amounts)	2012			2011			$ Change			% Change			2012			2011			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	147,188		$	144,358		$	2,830			2.0	%	$	296,211		$	287,129		$	9,082			3.2	%
Interest and dividends on investment securities:
Taxable		23,000			35,351			(12,351	)		(34.9	)%		46,029			70,003			(23,974	)		(34.2	)%
Tax-exempt		7,135			7,504			(369	)		(4.9	)%		14,409			15,217			(808	)		(5.3	)%
Other interest		1,262			1,438			(176	)		(12.2	)%		2,509			2,896			(387	)		(13.4	)%

Total interest income		178,585			188,651			(10,066	)		(5.3	)%		359,158			375,245			(16,087	)		(4.3	)%
*Interest Expense*
Interest on deposits		10,553			16,901			(6,348	)		(37.6	)%		22,589			35,150			(12,561	)		(35.7	)%
Interest on Federal funds purchased and securities sold under agreements to repurchase		612			1,600			(988	)		(61.8	)%		1,379			3,109			(1,730	)		(55.6	)%
Interest on other short-term borrowed funds		1,197			2,036			(839	)		(41.2	)%		2,253			4,107			(1,854	)		(45.1	)%
Interest on junior subordinated debentures		3,627			3,700			(73	)		(2.0	)%		7,345			7,399			(54	)		(0.7	)%
Interest on other long-term borrowed funds		8,329			10,291			(1,962	)		(19.1	)%		16,657			17,634			(977	)		(5.5	)%

Total interest expense		24,318			34,528			(10,210	)		(29.6	)%		50,223			67,399			(17,176	)		(25.5	)%

*Net Interest Income*		154,267			154,123			144			0.1	%		308,935			307,846			1,089			0.4	%
Provision for loan losses		—			16,000			(16,000	)		(100.0	)%		—			47,000			(47,000	)		(100.0	)%

Net interest income after provision for loan losses		154,267			138,123			16,144			11.7	%		308,935			260,846			48,089			18.4	%
*Noninterest Income*
Trust service fees		10,125			10,012			113			1.1	%		19,912			19,843			69			0.3	%
Service charges on deposit accounts		16,768			19,112			(2,344	)		(12.3	)%		34,810			38,176			(3,366	)		(8.8	)%
Card-based and other nondeposit fees		12,084			15,747			(3,663	)		(23.3	)%		22,963			31,345			(8,382	)		(26.7	)%
Insurance commissions		12,912			11,552			1,360			11.8	%		24,502			23,318			1,184			5.1	%
Brokerage and annuity commissions		4,206			4,923			(717	)		(14.6	)%		8,333			9,538			(1,205	)		(12.6	)%

Total core fee-based revenue		56,095			61,346			(5,251	)		(8.6	)%		110,520			122,220			(11,700	)		(9.6	)%
Mortgage banking, net		16,735			(3,320	)		20,055			N/M			34,389			(1,475	)		35,864			N/M
Capital market fees, net		2,673			(890	)		3,563			N/M			6,389			1,488			4,901			N/M
Bank owned life insurance income		3,164			3,500			(336	)		(9.6	)%		7,456			7,086			370			5.2	%
Asset gains (losses), net		(4,984	)		(3,378	)		(1,606	)		47.5	%		(8,578	)		(6,541	)		(2,037	)		31.1	%
Investment securities gains (losses), net		563			(36	)		599			N/M			603			(58	)		661			N/M
Other		1,705			4,364			(2,659	)		(60.9	)%		3,618			9,871			(6,253	)		(63.3	)%

Total noninterest income		75,951			61,586			14,365			23.3	%		154,397			132,591			21,806			16.4	%
*Noninterest Expense*
Personnel expense		93,819			89,526			4,293			4.8	%		188,100			178,754			9,346			5.2	%
Occupancy		14,008			12,663			1,345			10.6	%		29,187			27,938			1,249			4.5	%
Equipment		5,719			4,969			750			15.1	%		11,187			9,736			1,451			14.9	%
Data processing		11,304			7,974			3,330			41.8	%		20,820			15,508			5,312			34.3	%
Business development and advertising		5,468			5,652			(184	)		(3.3	)%		10,849			10,595			254			2.4	%
Other intangible amortization		1,049			1,178			(129	)		(11.0	)%		2,098			2,356			(258	)		(11.0	)%
Loan expense		2,948			2,983			(35	)		(1.2	)%		5,858			5,939			(81	)		(1.4	)%
Legal and professional fees		5,657			4,783			874			18.3	%		15,372			9,265			6,107			65.9	%
Losses other than loans		2,060			(1,925	)		3,985			N/M			5,610			4,372			1,238			28.3	%
Foreclosure/OREO expense		4,343			6,358			(2,015	)		(31.7	)%		7,705			11,242			(3,537	)		(31.5	)%
FDIC expense		4,778			7,198			(2,420	)		(33.6	)%		9,648			15,442			(5,794	)		(37.5	)%
Other		14,877			14,358			519			3.6	%		29,358			27,569			1,789			6.5	%

Total noninterest expense		166,030			155,717			10,313			6.6	%		335,792			318,716			17,076			5.4	%

*Income before income taxes*		64,188			43,992			20,196			45.9	%		127,540			74,721			52,819			70.7	%
Income tax expense		20,871			9,610			11,261			117.2	%		41,590			17,486			24,104			137.8	%

*Net income*		43,317			34,382			8,935			26.0	%		85,950			57,235		$	28,715			50.2	%
Preferred stock dividends and discount		1,300			8,812			(7,512	)		(85.2	)%		2,600			16,225			(13,625	)		(84.0	)%

*Net income available to common equity*	$	42,017		$	25,570		$	16,447			64.3	%	$	83,350		$	41,010		$	42,340			103.2	%

Earnings Per Common Share:
Basic	$	0.24		$	0.15		$	0.09			60.0	%	$	0.48		$	0.24		$	0.24			100.0	%
Diluted	$	0.24		$	0.15		$	0.09			60.0	%	$	0.48		$	0.24		$	0.24			100.0	%
Average Common Shares Outstanding:
Basic		172,839			173,323			(484	)		(0.3	)%		173,343			173,268			75			0.0	%
Diluted		172,841			173,327			(486	)		(0.3	)%		173,345			173,272			73			0.0	%

N/M = Not meaningful.

Page 2

Consolidated Statements of Income (Unaudited) - Quarterly Trend

Associated Banc-Corp


(in thousands, except per share amounts)	Sequential Qtr																					Comparable Qtr
(in thousands, except per share amounts)	2Q12			1Q12			$ Change			% Change			4Q11			3Q11			2Q11			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	147,188		$	149,023		$	(1,835	)		(1.2	)%	$	149,832		$	145,778		$	144,358		$	2,830			2.0	%
Interest and dividends on investment securities:
Taxable		23,000			23,029			(29	)		(0.1	)%		22,855			30,513			35,351			(12,351	)		(34.9	)%
Tax-exempt		7,135			7,274			(139	)		(1.9	)%		7,344			7,376			7,504			(369	)		(4.9	)%
Other interest		1,262			1,247			15			1.2	%		1,251			1,428			1,438			(176	)		(12.2	)%

Total interest income		178,585			180,573			(1,988	)		(1.1	)%		181,282			185,095			188,651			(10,066	)		(5.3	)%
*Interest Expense*
Interest on deposits		10,553			12,036			(1,483	)		(12.3	)%		14,954			15,644			16,901			(6,348	)		(37.6	)%
Interest on Federal funds purchased and securities sold under agreements to repurchase		612			767			(155	)		(20.2	)%		1,278			1,810			1,600			(988	)		(61.8	)%
Interest on other short-term borrowed funds		1,197			1,056			141			13.4	%		879			1,229			2,036			(839	)		(41.2	)%
Interest on junior subordinated debentures		3,627			3,718			(91	)		(2.4	)%		3,629			3,785			3,700			(73	)		(2.0	)%
Interest on other long-term borrowed funds		8,329			8,328			1			0.0	%		8,717			9,467			10,291			(1,962	)		(19.1	)%

Total interest expense		24,318			25,905			(1,587	)		(6.1	)%		29,457			31,935			34,528			(10,210	)		(29.6	)%

*Net Interest Income*		154,267			154,668			(401	)		(0.3	)%		151,825			153,160			154,123			144			0.1	%
Provision for loan losses		—			—			—			N/M			1,000			4,000			16,000			(16,000	)		(100.0	)%

Net interest income after provision for loan losses		154,267			154,668			(401	)		(0.3	)%		150,825			149,160			138,123			16,144			11.7	%
*Noninterest Income*
Trust service fees		10,125			9,787			338			3.5	%		9,511			9,791			10,012			113			1.1	%
Service charges on deposit accounts		16,768			18,042			(1,274	)		(7.1	)%		17,783			19,949			19,112			(2,344	)		(12.3	)%
Card-based and other nondeposit fees		12,084			10,879			1,205			11.1	%		11,269			15,291			15,747			(3,663	)		(23.3	)%
Insurance commissions		12,912			11,590			1,322			11.4	%		11,216			11,020			11,552			1,360			11.8	%
Brokerage and annuity commissions		4,206			4,127			79			1.9	%		3,665			4,027			4,923			(717	)		(14.6	)%

Total core fee-based revenue		56,095			54,425			1,670			3.1	%		53,444			60,078			61,346			(5,251	)		(8.6	)%
Mortgage banking, net		16,735			17,654			(919	)		(5.2	)%		9,677			4,521			(3,320	)		20,055			N/M
Capital market fees, net		2,673			3,716			(1,043	)		(28.1	)%		3,950			3,273			(890	)		3,563			N/M
Bank owned life insurance income		3,164			4,292			(1,128	)		(26.3	)%		3,820			3,990			3,500			(336	)		(9.6	)%
Asset gains (losses), net		(4,984	)		(3,594	)		(1,390	)		38.7	%		(1,799	)		(3,859	)		(3,378	)		(1,606	)		47.5	%
Investment securities gains (losses), net		563			40			523			N/M			(310	)		(744	)		(36	)		599			N/M
Other		1,705			1,913			(208	)		(10.9	)%		2,750			1,737			4,364			(2,659	)		(60.9	)%

Total noninterest income		75,951			78,446			(2,495	)		(3.2	)%		71,532			68,996			61,586			14,365			23.3	%
*Noninterest Expense*
Personnel expense		93,819			94,281			(462	)		(0.5	)%		90,306			91,084			89,526			4,293			4.8	%
Occupancy		14,008			15,179			(1,171	)		(7.7	)%		13,796			14,205			12,663			1,345			10.6	%
Equipment		5,719			5,468			251			4.6	%		5,286			4,851			4,969			750			15.1	%
Data processing		11,304			9,516			1,788			18.8	%		9,080			7,887			7,974			3,330			41.8	%
Business development and advertising		5,468			5,381			87			1.6	%		6,904			5,539			5,652			(184	)		(3.3	)%
Other intangible amortization		1,049			1,049			—			0.0	%		1,179			1,179			1,178			(129	)		(11.0	)%
Loan expense		2,948			2,910			38			1.3	%		3,469			2,600			2,983			(35	)		(1.2	)%
Legal and professional fees		5,657			9,715			(4,058	)		(41.8	)%		4,651			4,289			4,783			874			18.3	%
Losses other than loans		2,060			3,550			(1,490	)		(42.0	)%		11,890			1,659			(1,925	)		3,985			N/M
Foreclosure/OREO expense		4,343			3,362			981			29.2	%		5,169			4,982			6,358			(2,015	)		(31.7	)%
FDIC expense		4,778			4,870			(92	)		(1.9	)%		6,136			6,906			7,198			(2,420	)		(33.6	)%
Other		14,877			14,481			396			2.7	%		14,461			14,299			14,358			519			3.6	%

Total noninterest expense		166,030			169,762			(3,732	)		(2.2	)%		172,327			159,480			155,717			10,313			6.6	%

*Income before income taxes*		64,188			63,352			836			1.3	%		50,030			58,676			43,992			20,196			45.9	%
Income tax expense		20,871			20,719			152			0.7	%		8,905			17,337			9,610			11,261			117.2	%

*Net income*		43,317			42,633			684			1.6	%		41,125			41,339			34,382			8,935			26.0	%
Preferred stock dividends and discount		1,300			1,300			—			0.0	%		1,300			7,305			8,812			(7,512	)		(85.2	)%

*Net income available to common equity*	$	42,017		$	41,333		$	684			1.7	%	$	39,825		$	34,034		$	25,570		$	16,447			64.3	%

Earnings Per Common Share:
Basic	$	0.24		$	0.24		$	—			0.0	%	$	0.23		$	0.20		$	0.15		$	0.09			60.0	%
Diluted	$	0.24		$	0.24		$	—			0.0	%	$	0.23		$	0.20		$	0.15		$	0.09			60.0	%

Average Common Shares Outstanding:
Basic		172,839			173,846			(1,007	)		(0.6	)%		173,523			173,418			173,323			(484	)		(0.3	)%
Diluted		172,841			173,848			(1,007	)		(0.6	)%		173,523			173,418			173,327			(486	)		(0.3	)%

N/M = Not meaningful.

Page 3

Selected Quarterly Information

Associated Banc-Corp


(in thousands, except per share and full time equivalent employee data)	YTD 2012			YTD 2011			2nd Qtr 2012			1st Qtr 2012			4th Qtr 2011			3rd Qtr 2011			2nd Qtr 2011
*Summary of Operations*
Net interest income	$	308,935		$	307,846		$	154,267		$	154,668		$	151,825		$	153,160		$	154,123
Provision for loan losses		—			47,000			—			—			1,000			4,000			16,000
Asset gains (losses), net		(8,578	)		(6,541	)		(4,984	)		(3,594	)		(1,799	)		(3,859	)		(3,378	)
Investment securities gains (losses), net		603			(58	)		563			40			(310	)		(744	)		(36	)
Noninterest income (excluding securities & asset gains)		162,372			139,190			80,372			82,000			73,641			73,599			65,000
Noninterest expense		335,792			318,716			166,030			169,762			172,327			159,480			155,717
Income before income taxes		127,540			74,721			64,188			63,352			50,030			58,676			43,992
Income tax expense		41,590			17,486			20,871			20,719			8,905			17,337			9,610
Net income		85,950			57,235			43,317			42,633			41,125			41,339			34,382
Net income available to common equity		83,350			41,010			42,017			41,333			39,825			34,034			25,570
Taxable equivalent adjustment		10,557			10,772			5,254			5,303			5,307			5,295			5,332

*Per Common Share Data*
Net income:
Basic	$	0.48		$	0.24		$	0.24		$	0.24		$	0.23		$	0.20		$	0.15
Diluted		0.48			0.24			0.24			0.24			0.23			0.20			0.15
Dividends		0.10			0.02			0.05			0.05			0.01			0.01			0.01
Market Value:
High	$	14.63		$	15.36		$	13.97		$	14.63		$	11.78		$	14.17		$	15.02
Low		11.43			13.06			11.76			11.43			9.15			8.95			13.06
Close		13.19			13.90			13.19			13.96			11.17			9.30			13.90
Book value		16.59			15.81			16.59			16.32			16.15			16.07			15.81
Tangible book value		11.07			10.33			11.07			10.87			10.68			10.59			10.33

*Performance Ratios (annualized)*
Earning assets yield		3.83	%		4.00	%		3.80	%		3.85	%		3.81	%		3.88	%		4.00	%
Interest-bearing liabilities rate		0.68			0.90			0.65			0.70			0.78			0.83			0.91
Net interest margin		3.31			3.30			3.30			3.31			3.21			3.23			3.29
Return on average assets		0.80			0.54			0.80			0.79			0.75			0.75			0.64
Return on average equity		5.95			3.75			5.98			5.93			5.71			5.49			4.63
Return on average Tier 1 common equity (1)		9.25			4.92			9.26			9.23			8.96			7.83			6.07
Efficiency ratio (2)		69.69			69.62			69.21			70.16			74.67			68.73			69.38
Effective tax rate		32.61			23.40			32.52			32.70			17.80			29.55			21.84
Dividend payout ratio (3)		20.83			8.33			20.83			20.83			4.35			5.00			6.67

*Average Balances*
Assets	$	21,671,870		$	21,432,029		$	21,684,600		$	21,659,139		$	21,755,870		$	21,729,187		$	21,526,155
Earning assets		19,378,888			19,364,948			19,386,046			19,371,729			19,506,627			19,530,007			19,431,292
Interest-bearing liabilities		14,921,209			15,085,468			14,922,006			14,920,413			15,095,689			15,215,517			15,261,514
Loans (4)		14,456,522			12,840,289			14,602,602			14,310,441			14,043,585			13,376,928			13,004,904
Deposits		15,025,625			14,148,618			15,050,684			15,000,567			14,893,469			14,405,311			14,052,689
Borrowed funds		3,585,023			4,160,335			3,566,346			3,603,700			3,857,252			4,227,319			4,434,500
Common stockholders’ equity		2,839,482			2,681,562			2,852,050			2,826,913			2,792,823			2,765,023			2,704,909
Stockholders’ equity		2,902,754			3,074,197			2,915,322			2,890,185			2,856,095			2,987,178			2,976,840
Common stockholders’ equity / assets		13.10	%		12.51	%		13.15	%		13.05	%		12.84	%		12.72	%		12.57	%
Stockholders’ equity / assets		13.39	%		14.34	%		13.44	%		13.34	%		13.13	%		13.75	%		13.83	%

*At Period End*
Assets							$	22,081,100		$	21,913,670		$	21,924,217		$	21,902,649		$	22,048,475
Loans								14,698,902			14,253,725			14,031,071			13,503,507			13,089,589
Allowance for loan losses								332,658			356,298			378,151			399,723			425,961
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								47,488			50,001			48,152			47,370			53,093
Other intangible assets								17,324			18,373			19,422			20,600			21,779
Deposits								15,106,871			15,653,376			15,090,655			14,782,410			14,066,050
Borrowed funds								3,803,999			3,112,955			3,691,556			4,009,184			4,739,844
Stockholders’ equity								2,909,621			2,900,873			2,865,794			2,850,619			2,999,148
Stockholders’ equity / assets								13.18	%		13.24	%		13.07	%		13.01	%		13.60	%
Tangible common equity / tangible assets (5)								8.99	%		9.01	%		8.84	%		8.77	%		8.49	%
Tangible equity / tangible assets (6)								9.29	%		9.32	%		9.14	%		9.07	%		9.71	%
Tier 1 common equity / risk-weighted assets (7)								12.04	%		12.49	%		12.24	%		12.44	%		12.61	%
Tier 1 leverage ratio								9.95	%		10.03	%		9.81	%		9.62	%		10.46	%
Tier 1 risk-based capital ratio								13.64	%		14.33	%		14.08	%		14.35	%		16.03	%
Total risk-based capital ratio								15.08	%		15.78	%		15.53	%		15.81	%		17.50	%
Shares outstanding, end of period								171,611			173,923			173,575			173,474			173,374

*Selected trend information*
Average full time equivalent employees								4,951			5,045			5,056			4,980			4,977
Trust assets under management, at market value							$	5,900,000		$	6,000,000		$	5,600,000		$	5,300,000		$	5,700,000
Mortgage loans originated for sale during period								738,091			563,688			843,614			470,530			250,880
Mortgage portfolio serviced for others								7,511,000			7,284,000			7,321,000			7,281,000			7,367,000
Mortgage servicing rights, net / Portfolio serviced for others								0.63	%		0.69	%		0.66	%		0.65	%		0.72	%

(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)	Jun 30, 2012			Mar 31, 2012			Jun 12 vs Mar 12 % Change			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Jun 12 vs Jun 11 % Change
*Allowance for Loan Losses*
Beginning balance	$	356,298		$	378,151			(5.8	)%	$	399,723		$	425,961		$	454,461			(21.6	)%
Provision for loan losses		—			—			0.0	%		1,000			4,000			16,000			(100.0	)%
Charge offs		(30,340	)		(31,259	)		(2.9	)%		(34,056	)		(38,155	)		(52,365	)		(42.1	)%
Recoveries		6,700			9,406			(28.8	)%		11,484			7,917			7,865			(14.8	)%

Net charge offs		(23,640	)		(21,853	)		8.2	%		(22,572	)		(30,238	)		(44,500	)		(46.9	)%

Ending balance	$	332,658		$	356,298			(6.6	)%	$	378,151		$	399,723		$	425,961			(21.9	)%

Reserve for losses on unfunded commitments	$	18,900		$	15,600			21.2	%	$	14,700		$	14,900		$	14,900			26.8	%

	Jun 30, 2012			Mar 31, 2012			Jun 12 vs Mar 12 % Change			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Jun 12 vs Jun 11 % Change
*Net Charge Offs*
Commercial and industrial	$	14,544		$	3,872			N/M		$	231		$	3,741		$	14,026			3.7	%
Commercial real estate - owner occupied		1,164			415			180.5	%		539			134			4,436			(73.8	)%
Lease financing		—			(1,836	)		(100.0	)%		19			(1,889	)		60			(100.0	)%

Commercial and business lending		15,708			2,451			N/M			789			1,986			18,522			(15.2	)%
Commercial real estate - investor		177			7,354			(97.6	)%		2,394			10,472			4,941			(96.4	)%
Real estate construction		558			230			142.6	%		7,088			5,646			6,031			(90.7	)%

Commercial real estate lending		735			7,584			(90.3	)%		9,482			16,118			10,972			(93.3	)%

Total commercial		16,443			10,035			63.9	%		10,271			18,104			29,494			(44.2	)%
Home equity		5,284			8,950			(41.0	)%		8,113			8,736			8,251			(36.0	)%
Installment		371			101			N/M			452			764			664			(44.1	)%

Total retail		5,655			9,051			(37.5	)%		8,565			9,500			8,915			(36.6	)%
Residential mortgage		1,542			2,767			(44.3	)%		3,736			2,634			6,091			(74.7	)%

Total net charge offs	$	23,640		$	21,853			8.2	%	$	22,572		$	30,238		$	44,500			(46.9	)%


	Jun 30, 2012			Mar 31, 2012						Dec 31, 2011			Sep 30, 2011			Jun 30, 2011
Net Charge Offs to Average Loans (in basis points) *
Commercial and industrial		151			42						3			46			180
Commercial real estate - owner occupied		43			16						20			5			174
Lease financing		—			N/M						14			N/M			44

Commercial and business lending		126			20						7			18			177
Commercial real estate - investor		3			113						38			169			83
Real estate construction		40			16						N/M			N/M			N/M

Commercial real estate lending		9			96						122			213			151

Total commercial		79			50						53			98			166
Home equity		86			144						127			134			127
Installment		28			7						32			52			42

Total retail		76			119						110			119			111
Residential mortgage		19			34						46			36			92

Total net charge offs		65			61						64			90			137


	Jun 30, 2012			Mar 31, 2012			Jun 12 vs Mar 12 % Change			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Jun 12 vs Jun 11 % Change
*Credit Quality*
Nonaccrual loans	$	317,872		$	327,085			(2.8	)%	$	356,772		$	403,392		$	467,611			(32.0	)%
Other real estate owned (OREO)		40,029			34,425			16.3	%		41,571			42,076			45,712			(12.4	)%

Total nonperforming assets	$	357,901		$	361,510			(1.0)	%	$	398,343		$	445,468		$	513,323			(30.3	)%

Loans 90 or more days past due and still accruing		5,224			2,497			109.2	%		4,925			1,220			12,123			(56.9	)%
Restructured loans (accruing)		122,229			120,719			1.3	%		113,164			113,083			100,343			21.8	%
Allowance for loan losses / loans		2.26	%		2.50	%					2.70	%		2.96	%		3.25	%
Allowance for loan losses / nonaccrual loans		104.65			108.93						105.99			99.09			91.09
Nonaccrual loans / total loans		2.16			2.29						2.54			2.99			3.57
Nonperforming assets / total loans plus OREO		2.43			2.53						2.83			3.29			3.91
Nonperforming assets / total assets		1.62			1.65						1.82			2.03			2.33
Net charge offs / average loans (annualized)		0.65			0.61						0.64			0.90			1.37
Year-to-date net charge offs / average loans		0.63			0.61						1.13			1.32			1.54

Nonaccrual loans by type:
Commercial and industrial	$	46,111		$	50,641			(8.9	)%	$	56,075		$	61,256		$	71,183			(35.2	)%
Commercial real estate - owner occupied		33,417			31,888			4.8	%		35,718			47,202			59,725			(44.0	)%
Lease financing		8,260			9,040			(8.6	)%		10,644			11,667			12,898			(36.0	)%

Commercial and business lending		87,788			91,569			(4.1	)%		102,437			120,125			143,806			(39.0	)%
Commercial real estate - investor		88,806			89,030			(0.3	)%		99,352			97,691			133,770			(33.6	)%
Real estate construction		36,403			36,471			(0.2	)%		41,806			72,300			72,782			(50.0	)%

Commercial real estate lending		125,209			125,501			(0.2	)%		141,158			169,991			206,552			(39.4	)%

Total commercial		212,997			217,070			(1.9	)%		243,595			290,116			350,358			(39.2	)%
Home equity		41,536			44,628			(6.9	)%		46,907			46,119			46,777			(11.2	)%
Installment		3,047			2,627			16.0	%		2,715			3,195			3,724			(18.2	)%

Total retail		44,583			47,255			(5.7	)%		49,622			49,314			50,501			(11.7	)%
Residential mortgage		60,292			62,760			(3.9	)%		63,555			63,962			66,752			(9.7	)%

Total nonaccrual loans	$	317,872		$	327,085			(2.8	)%	$	356,772		$	403,392		$	467,611			(32.0	)%

*	Annualized.

N/M = Not meaningful.

Page 5

Selected Asset Quality Information (continued)

Associated Banc-Corp


(in thousands)	Jun 30, 2012		Mar 31, 2012		Jun 12 vs Mar 12 % Change			Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Jun 12 vs Jun 11 % Change
*Restructured loans (accruing)*
Commercial and industrial	$	28,399	$	25,622		10.8	%	$	22,552	$	23,020	$	22,760		24.8	%
Commercial real estate - owner occupied		7,115		6,926		2.7	%		8,138		5,439		1,579		N/M
Lease financing		—		—		0.0	%		—		—		—		0.0	%

Commercial and business lending		35,514		32,548		9.1	%		30,690		28,459		24,339		45.9	%
Commercial real estate - investor		49,325		45,845		7.6	%		43,417		43,453		34,612		42.5	%
Real estate construction		5,838		11,770		(50.4	)%		10,977		10,707		10,706		(45.5	)%

Commercial real estate lending		55,163		57,615		(4.3	)%		54,394		54,160		45,318		21.7	%

Total commercial		90,677		90,163		0.6	%		85,084		82,619		69,657		30.2	%
Home equity		9,471		9,092		4.2	%		8,950		10,556		11,453		(17.3	)%
Installment		779		999		(22.0	)%		1,015		965		1,017		(23.4	)%

Total retail		10,250		10,091		1.6	%		9,965		11,521		12,470		(17.8	)%
Residential mortgage		21,302		20,465		4.1	%		18,115		18,943		18,216		16.9	%

Total restructured loans (accruing)	$	122,229	$	120,719		1.3	%	$	113,164	$	113,083	$	100,343		21.8	%

Restructured loans in nonaccrual loans (not included above)	$	86,395	$	79,946		8.1	%	$	87,493	$	80,063	$	71,084		21.5	%

	Jun 30, 2012		Mar 31, 2012		Jun 12 vs Mar 12 % Change			Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Jun 12 vs Jun 11 % Change
*Loans Past Due 30-89 Days*
Commercial and industrial	$	4,465	$	12,643		(64.7	)%	$	8,743	$	6,255	$	7,581		(41.1	)%
Commercial real estate - owner occupied		2,125		7,532		(71.8	)%		7,092		29,409		33,753		(93.7	)%
Lease financing		39		40		(2.5	)%		104		507		79		(50.6	)%

Commercial and business lending		6,629		20,215		(67.2	)%		15,939		36,171		41,413		(84.0	)%
Commercial real estate - investor		12,854		8,313		54.6	%		4,970		70,136		27,487		(53.2	)%
Real estate construction		1,618		1,736		(6.8	)%		996		5,493		13,217		(87.8	)%

Commercial real estate lending		14,472		10,049		44.0	%		5,966		75,629		40,704		(64.4	)%

Total commercial		21,101		30,264		(30.3	)%		21,905		111,800		82,117		(74.3	)%
Home equity		15,302		18,007		(15.0	)%		12,189		18,165		14,818		3.3	%
Installment		1,558		2,813		(44.6	)%		2,592		1,956		3,851		(59.5	)%

Total retail		16,860		20,820		(19.0	)%		14,781		20,121		18,669		(9.7	)%
Residential mortgage		9,836		10,114		(2.7	)%		7,224		12,114		12,573		(21.8	)%

Total loans past due 30-89 days	$	47,797	$	61,198		(21.9	)%	$	43,910	$	144,035	$	113,359		(57.8	)%


	Jun 30, 2012		Mar 31, 2012		Jun 12 vs Mar 12 % Change			Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Jun 12 vs Jun 11 % Change
*Potential Problem Loans*
Commercial and industrial	$	121,764	$	157,778		(22.8	)%	$	153,306	$	207,351	$	229,407		(46.9	)%
Commercial real estate - owner occupied		108,508		112,673		(3.7	)%		136,366		140,406		145,622		(25.5	)%
Lease financing		324		487		(33.5	)%		158		507		1,399		(76.8	)%

Commercial and business lending		230,596		270,938		(14.9	)%		289,830		348,264		376,428		(38.7	)%

Commercial real estate - investor		142,453		167,339		(14.9	)%		230,206		252,331		236,434		(39.7	)%
Real estate construction		23,905		27,654		(13.6	)%		27,649		37,155		63,186		(62.2	)%

Commercial real estate lending		166,358		194,993		(14.7	)%		257,855		289,486		299,620		(44.5	)%

Total commercial		396,954		465,931		(14.8	)%		547,685		637,750		676,048		(41.3	)%
Home equity		4,173		4,441		(6.0	)%		5,451		4,975		4,515		(7.6	)%
Installment		127		142		(10.6	)%		233		272		216		(41.2	)%

Total retail		4,300		4,583		(6.2	)%		5,684		5,247		4,731		(9.1	)%
Residential mortgage		8,658		9,580		(9.6	)%		13,037		16,550		18,575		(53.4	)%

Total potential problem loans	$	409,912	$	480,094		(14.6	)%	$	566,406	$	659,547	$	699,354		(41.4	)%

N/M - Not meaningful.

Page 6

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp


	Six months ended June 30, 2012							Six 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 and business lending	$	4,922,827	$	97,569		3.98	%	$	4,115,687	$	88,817		4.35	%
Commercial real estate lending		3,253,668		69,345		4.28			2,896,320		64,749		4.50

Total commercial		8,176,495		166,914		4.10		$	7,012,007	$	153,566		4.41
Residential mortgage		3,256,480		61,230		3.76			2,592,749		55,179		4.26
Retail		3,023,547		69,979		4.65			3,235,533		80,025		4.97

Total loans		14,456,522		298,123		4.14			12,840,289		288,770		4.52
Investment securities		4,507,200		69,083		3.07			5,773,545		94,351		3.27
Other short-term investments		415,166		2,509		1.21			751,114		2,896		0.77

Investments and other		4,922,366		71,592		2.91			6,524,659		97,247		2.98

Total earning assets		19,378,888		369,715		3.83			19,364,948		386,017		4.00
Other assets, net		2,292,982							2,067,081

Total assets	$	21,671,870						$	21,432,029

Interest-bearing liabilities:
Savings deposits	$	1,069,499	$	396		0.07	%	$	958,629	$	571		0.12	%
Interest-bearing demand deposits		2,109,947		1,861		0.18			1,788,112		1,369		0.15
Money market deposits		5,774,305		7,302		0.25			5,093,854		8,894		0.35
Time deposits		2,382,435		13,030		1.10			3,084,538		24,316		1.59

Total interest-bearing deposits		11,336,186		22,589		0.40			10,925,133		35,150		0.65
Federal funds purchased and securities sold under agreements to repurchase		1,228,842		1,379		0.23			1,815,669		3,109		0.35
Other short-term borrowed funds		1,181,692		2,253		0.38			919,324		4,107		0.90
Junior subordinated debentures		213,323		7,345		6.89			215,380		7,399		6.87
Other long-term borrowed funds		961,166		16,657		3.47			1,209,962		17,634		2.92

Total borrowed funds		3,585,023		27,634		1.54			4,160,335		32,249		1.56

Total interest-bearing liabilities		14,921,209		50,223		0.68			15,085,468		67,399		0.90
Noninterest-bearing demand deposits		3,689,439							3,223,485
Other liabilities		158,468							48,879
Stockholders’ equity		2,902,754							3,074,197

Total liabilities and stockholders’ equity	$	21,671,870						$	21,432,029



Net interest income and rate spread (1)			$	319,492		3.15	%			$	318,618		3.10	%

Net interest margin (1)						3.31	%						3.30	%
Taxable equivalent adjustment			$	10,557						$	10,772

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp


	Three months ended June 30, 2012							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 and business lending	$	5,016,701	$	48,584		3.89	%	$	4,207,786	$	44,396		4.23	%
Commercial real estate lending		3,320,186		34,843		4.22			2,907,144		32,726		4.51

Total commercial		8,336,887		83,427		4.02		$	7,114,930	$	77,122		4.35
Residential mortgage		3,273,873		30,266		3.70			2,657,740		28,032		4.22
Retail		2,991,842		34,468		4.63			3,232,234		40,033		4.96

Total loans		14,602,602		148,161		4.07			13,004,904		145,187		4.47
Investment securities		4,402,800		34,416		3.13			5,689,728		47,359		3.33
Other short-term investments		380,644		1,262		1.33			736,660		1,437		0.78

Investments and other		4,783,444		35,678		2.98			6,426,388		48,796		3.04

Total earning assets		19,386,046		183,839		3.80			19,431,292		193,983		4.00
Other assets, net		2,298,554							2,094,863

Total assets	$	21,684,600						$	21,526,155

Interest-bearing liabilities:
Savings deposits	$	1,109,609	$	211		0.08	%	$	999,748	$	308		0.12	%
Interest-bearing demand deposits		2,105,440		917		0.18			1,811,525		738		0.16
Money market deposits		5,860,043		3,744		0.26			5,039,056		4,206		0.33
Time deposits		2,280,568		5,681		1.00			2,976,685		11,649		1.57

Total interest-bearing deposits		11,355,660		10,553		0.37			10,827,014		16,901		0.63
Federal funds purchased and securities sold under agreements to repurchase		1,114,964		612		0.22			1,920,877		1,600		0.33
Other short-term borrowed funds		1,279,319		1,197		0.38			1,029,483		2,036		0.79
Junior subordinated debentures		211,038		3,627		6.87			215,771		3,700		6.86
Other long-term borrowed funds		961,025		8,329		3.47			1,268,369		10,291		3.25

Total borrowed funds		3,566,346		13,765		1.55			4,434,500		17,627		1.59

Total interest-bearing liabilities		14,922,006		24,318		0.65			15,261,514		34,528		0.91
Noninterest-bearing demand deposits		3,695,024							3,225,675
Other liabilities		152,248							62,126
Stockholders’ equity		2,915,322							2,976,840

Total liabilities and stockholders’ equity	$	21,684,600						$	21,526,155



Net interest income and rate spread (1)			$	159,521		3.15	%			$	159,455		3.09	%

Net interest margin (1)						3.30	%						3.29	%
Taxable equivalent adjustment			$	5,254						$	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.

Page 7

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp


	Three months ended June 30, 2012							Three months ended March 31, 2012
(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 and business lending	$	5,016,701	$	48,584		3.89	%	$	4,828,953	$	48,985		4.08	%
Commercial real estate lending		3,320,186		34,843		4.22			3,187,150		34,502		4.35

Total commercial		8,336,887		83,427		4.02		$	8,016,103	$	83,487		4.19
Residential mortgage		3,273,873		30,266		3.70			3,239,087		30,964		3.83
Retail		2,991,842		34,468		4.63			3,055,251		35,511		4.67

Total loans		14,602,602		148,161		4.07			14,310,441		149,962		4.21
Investment securities		4,402,800		34,416		3.13			4,611,600		34,667		3.01
Other short-term investments		380,644		1,262		1.33			449,688		1,247		1.11

Investments and other		4,783,444		35,678		2.98			5,061,288		35,914		2.84

Total earning assets		19,386,046		183,839		3.80			19,371,729		185,876		3.85
Other assets, net		2,298,554							2,287,410

Total assets	$	21,684,600						$	21,659,139

Interest-bearing liabilities:
Savings deposits	$	1,109,609	$	211		0.08	%	$	1,029,390	$	185		0.07	%
Interest-bearing demand deposits		2,105,440		917		0.18			2,114,454		944		0.18
Money market deposits		5,860,043		3,744		0.26			5,688,567		3,558		0.25
Time deposits		2,280,568		5,681		1.00			2,484,302		7,349		1.19

Total interest-bearing deposits		11,355,660		10,553		0.37			11,316,713		12,036		0.43
Federal funds purchased and securities sold under agreements to repurchase		1,114,964		612		0.22			1,342,720		767		0.23
Other short-term borrowed funds		1,279,319		1,197		0.38			1,084,066		1,056		0.39
Junior subordinated debentures		211,038		3,627		6.87			215,607		3,718		6.90
Other long-term borrowed funds		961,025		8,329		3.47			961,307		8,328		3.47

Total borrowed funds		3,566,346		13,765		1.55			3,603,700		13,869		1.54

Total interest-bearing liabilities		14,922,006		24,318		0.65			14,920,413		25,905		0.70
Noninterest-bearing demand deposits		3,695,024							3,683,854
Other liabilities		152,248							164,687
Stockholders’ equity		2,915,322							2,890,185

Total liabilities and stockholders’ equity	$	21,684,600						$	21,659,139



Net interest income and rate spread (1)			$	159,521		3.15	%			$	159,971		3.15	%

Net interest margin (1)						3.30	%						3.31	%
Taxable equivalent adjustment			$	5,254						$	5,303

(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


	Jun 30, 2012		Mar 31, 2012		Jun 12 vs Mar 12 % Change			Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Jun 12 vs Jun 11 % Change
*Period End Loan Composition*
Commercial and industrial	$	4,076,370	$	3,719,016		9.6	%	$	3,724,736	$	3,360,502	$	3,202,301		27.3	%
Commercial real estate - owner occupied		1,116,815		1,074,755		3.9	%		1,086,829		1,068,616		1,030,060		8.4	%
Lease financing		62,750		61,208		2.5	%		58,194		54,849		54,001		16.2	%

Commercial and business lending		5,255,935		4,854,979		8.3	%		4,869,759		4,483,967		4,286,362		22.6	%
Commercial real estate - investor		2,810,521		2,664,251		5.5	%		2,563,767		2,481,411		2,393,626		17.4	%
Real estate construction		612,556		565,953		8.2	%		584,046		554,024		533,804		14.8	%

Commercial real estate lending		3,423,077		3,230,204		6.0	%		3,147,813		3,035,435		2,927,430		16.9	%

Total commercial		8,679,012		8,085,183		7.3	%		8,017,572		7,519,402		7,213,792		20.3	%
Home equity		2,429,594		2,501,770		(2.9	)%		2,504,704		2,571,404		2,594,029		(6.3	)%
Installment		510,831		537,628		(5.0	)%		557,782		572,243		589,714		(13.4	)%

Total retail		2,940,425		3,039,398		(3.3	)%		3,062,486		3,143,647		3,183,743		(7.6	)%
Residential mortgage		3,079,465		3,129,144		(1.6	)%		2,951,013		2,840,458		2,692,054		14.4	%

Total loans	$	14,698,902	$	14,253,725		3.1	%	$	14,031,071	$	13,503,507	$	13,089,589		12.3	%


	Jun 30, 2012		Mar 31, 2012		Jun 12 vs Mar 12 % Change			Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Jun 12 vs Jun 11 % Change
*Period End Deposit and Customer Funding Composition*
Noninterest-bearing demand	$	3,874,429	$	3,989,156		(2.9	)%	$	3,928,792	$	3,711,570	$	3,218,722		20.4	%
Savings		1,117,593		1,098,975		1.7	%		986,766		1,013,195		1,007,337		10.9	%
Interest-bearing demand		2,078,037		2,040,900		1.8	%		2,297,454		2,071,627		1,931,519		7.6	%
Money market		5,822,449		6,176,981		(5.7	)%		5,150,275		5,205,401		4,982,492		16.9	%
Brokered CDs		41,104		46,493		(11.6	)%		202,948		203,827		316,670		(87.0	)%
Other time		2,173,259		2,300,871		(5.5	)%		2,524,420		2,576,790		2,609,310		(16.7	)%

Total deposits		15,106,871		15,653,376		(3.5	)%		15,090,655		14,782,410		14,066,050		7.4	%
Customer repo sweeps		592,203		635,697		(6.8	)%		664,624		871,619		930,101		(36.3	)%
Customer repo term		619,897		509,332		21.7	%		695,131		1,141,450		1,147,938		(46.0	)%

Total customer funding		1,212,100		1,145,029		5.9	%		1,359,755		2,013,069		2,078,039		(41.7	)%

Total deposits and customer funding	$	16,318,971	$	16,798,405		(2.9	)%	$	16,450,410	$	16,795,479	$	16,144,089		1.1	%

Network transaction deposits included above in interest-bearing demand and money market		1,234,010		1,171,679		5.3	%		875,052		875,630		824,003		49.8	%
Brokered CDs		41,104		46,493		(11.6	)%		202,948		203,827		316,670		(87.0	)%

Total network and brokered funding		1,275,114		1,218,172		4.7	%		1,078,000		1,079,457		1,140,673		11.8	%

Net customer deposits and funding (4)		15,043,857		15,580,233		(3.4	)%		15,372,410		15,716,022		15,003,416		0.3	%

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

Page 8

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