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

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Exhibit 99.1

NEWS RELEASE

Investor Contact:

Brian Klaus, Senior Vice President, Director of Investor Relations

920-491-7059

Media Contact:

Cliff Bowers, Senior Vice President, Director of Public Relations

920-491-7542

Associated Reports 2013 Earnings of $1.10 per share, up 10% from 2012

Fourth Quarter Earnings Per Share of $0.28

GREEN BAY, Wis. — January 16, 2014 — Associated Banc-Corp (NASDAQ: ASBC) today reported earnings per share of $1.10 for the year ended December 31, 2013. This compares to $1.00 per common share, for the year ended December 31, 2012.

For the quarter ended December 31, 2013, the Company reported earnings per share of $0.28 per common share. This compares to $0.26 per common share, for the quarter ended December 31, 2012.

“Overall we are pleased with our 2013 financial results and accomplishments. We were able to continue to grow our balance sheet, increase total revenues, modestly reduce expenses, and grow bottom line earnings,” said President and CEO Philip B. Flynn. “We remain focused on delivering increased value to our shareholders.”

2013 FULL YEAR HIGHLIGHTS

•

Revenue of $959 million, up 2% from a year ago.

•

Noninterest expenses were down slightly from 2012.

•

Net income to common shareholders of $184 million, up 6% from a year ago.

•

Average loan balances have grown by $921 million, or 6%, from a year ago to $15.7 billion.

•

Strong average deposit growth of 12% from a year ago to $17.4 billion.

•

Net interest margin decreased 13 basis points from 2012 while 2013 net interest income was up 3% or $20 million.

•

Credit quality continued to improve with net charge offs, nonaccrual loans, past due loans and potential problem loans all declining year over year.

•

The Company repurchased $120 million, or approximately 7.7 million shares, of common stock at an average price of $15.57 per share.

•

Total dividends per common share of $0.33 were up 43% from 2012.

•

Return on Tier 1 common equity for 2013 of 9.8%, compared to 9.5% for 2012.

•

Capital ratios remain very strong with a Tier 1 common equity ratio of 11.46% at year end.

– more –

FOURTH QUARTER AND 2013 FINANCIAL RESULTS

Loans

Average loans of $15.7 billion for 2013 were up $921 million, or 6%, from 2012. Total average Commercial Loans for 2013 increased 12% or $1 billion from a year ago to $9.5 billion. The residential mortgage portfolio 2013 average balances grew by $384 million, or 12%, compared to 2012. Run off in home equity and installment loan balances continues, with an average balance decline of $489 million during 2013, or 17%, from 2012, offsetting part of the growth.

Fourth quarter 2013 average loans were flat compared to the prior quarter as the 4% increase in the residential mortgage portfolio was almost entirely offset by decreases in other portfolios.

Deposits

2013 Average deposits of $17.4 billion were up 12% or $1.9 billion from 2012. Total average checking, savings, and money market balances growth of $2.2 billion was partially offset by declines in time deposits of $390 million during the year.

Average deposits of $17.9 billion for the fourth quarter were up $272 million, or 2% compared to the third quarter and have increased by $1.2 billion, or 7%, from the year ago quarter. Late in the fourth quarter, the Company reduced collateralized municipal deposits by $1 billion and replaced them with lower cost, longer term FHLB borrowings.

Net Interest Income and Net Interest Margin

Net interest income of $646 million for 2013 was up $20 million or 3% from 2012. Fourth quarter net interest income of $167 million increased 4% compared to the prior quarter and was up $6 million, or 4% compared to the year ago quarter.

Net interest margin decreased 13 basis points from 2012. Fourth quarter net interest margin was 3.23%, an increase of 10 basis points from the 3.13% reported in the third quarter and a decrease of 9 basis points from a year ago. The increase from the third quarter was mainly the result of an 8 basis point increase in asset yields as the Company experienced $3 million in interest recoveries. Fourth quarter net interest margin also benefited by 3 basis points from liability cost management actions related to replacing higher cost deposits with less expensive FHLB funding.

Noninterest Income and Expense

Noninterest income of $313 million for 2013, was flat compared to 2012. Noninterest income for the fourth quarter was $76 million, up $5 million, or 7% from the third quarter. This increase was primarily attributed to net mortgage banking income being up $5 million from the prior quarter.

– more –

2013 total noninterest expense of $681 million was down slightly from 2012. Increases in personnel, technology and equipment, and business development/advertising expenses were more than offset by declines in legal and professional fees, losses other than loans, and foreclosure/OREO expenses.

Total noninterest expense for the quarter ended December 31, 2013 was $179 million, up $15 million or 9% from the third quarter. Personnel expenses increased by $3 million during the fourth quarter which included $2 million of severance costs related to ongoing efficiency initiatives. Business development and advertising expenses increased $2 million from the third quarter as we ramped up our brand campaign. Fourth quarter other expenses increased $3 million from the third quarter related to several one-time items.

Taxes

During the fourth quarter, the Company recognized a $6 million tax benefit related to a settlement of a tax issue and the expiration of various statutes of limitations.

Credit

The Company reported another quarter of improving credit quality with nonaccrual loans down 11%, to $185 million compared to the third quarter, and down 27% from a year ago. The ratio of nonaccrual loans to total loans at year end stands at 1.17% and has improved for the 15^th consecutive quarter.

Net charge offs of $5 million for the fourth quarter were flat from the third quarter; both quarters experienced elevated recoveries.

Provision for loan losses was $10 million in 2013 compared to $3 million for 2012. The Company’s allowance for loan losses was $268 million, representing an allowance equal to 1.69% of loans and representing a coverage ratio of 145% of nonaccrual loans at December 31, 2013.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common equity ratio of 11.46% at December 31, 2013. The Company’s capital ratios continue to be well in excess of both current and expected “well-capitalized” regulatory benchmarks.

– more –

FOURTH QUARTER 2013 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 16, 2014. Interested parties can listen to the call live on the internet through the investor relations section of the company’s website, https://www.associatedbank.com/investor or by dialing 877-445-2557. 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 973-935-2959. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2013 earnings call.

An audio archive of the webcast will be available on the company’s website at https://www.associatedbank.com/investor.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $24 billion and is one of the top 50, publicly 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 in over 200 banking locations serving more than 100 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.

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.

# # #

Associated Banc-Corp

Consolidated Balance Sheets (Unaudited)


(in thousands)	December 31, 2013			September 30, 2013			Seq l Qtr $ Change			June 30, 2013			March 31, 2013			December 31, 2012			Comp Qtr $ Change
*Assets*
Cash and due from banks	$	455,482		$	526,009		$	(70,527	)	$	422,779		$	336,247		$	563,304		$	(107,822	)
Interest-bearing deposits in other financial institutions		126,018			277,761			(151,743	)		121,390			82,555			147,434			(21,416	)
Federal funds sold and securities purchased under agreements to resell		20,745			25,400			(4,655	)		10,800			8,600			27,135			(6,390	)
Securities held to maturity, at amortized cost		175,210			125,095			50,115			75,946			54,123			39,877			135,333
Securities available for sale, at fair value		5,250,585			4,840,035			410,550			4,854,319			4,950,317			4,926,758			323,827
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		181,249			181,129			120			181,008			152,490			166,774			14,475
Loans held for sale		64,738			102,052			(37,314	)		203,576			173,389			261,410			(196,672	)
Loans		15,896,261			15,585,854			310,407			15,746,599			15,551,562			15,411,022			485,239
Allowance for loan losses		(268,315	)		(271,724	)		3,409			(277,218	)		(286,923	)		(297,409	)		29,094

Loans, net		15,627,946			15,314,130			313,816			15,469,381			15,264,639			15,113,613			514,333
Premises and equipment, net		270,890			265,636			5,254			258,903			254,674			253,958			16,932
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		74,464			75,730			(1,266	)		74,612			66,294			61,176			13,288
Trading assets		43,728			49,402			(5,674	)		49,732			65,014			70,711			(26,983	)
Other assets		1,006,697			977,128			29,569			965,330			940,258			926,417			80,280

*Total assets*	$	24,226,920			23,688,675		$	538,245			23,616,944		$	23,277,768		$	23,487,735		$	739,185

*Liabilities and Stockholders’ Equity*
Noninterest-bearing demand deposits	$	4,626,312			4,453,663		$	172,649			4,259,776		$	4,453,109		$	4,759,556		$	(133,244	)
Interest-bearing deposits		12,640,855			13,884,245			(1,243,390	)		12,872,660			12,968,185			12,180,309			460,546

Total deposits		17,267,167			18,337,908			(1,070,741	)		17,132,436			17,421,294			16,939,865			327,302
Federal funds purchased and securities sold under agreements to repurchase		475,442			580,479			(105,037	)		545,740			730,855			750,455			(275,013	)
Other short-term funding		265,484			1,046,401			(780,917	)		2,218,760			1,038,697			1,576,484			(1,311,000	)
Long-term funding		3,087,267			614,568			2,472,699			614,822			915,063			1,015,346			2,071,921
Trading liabilities		46,470			52,430			(5,960	)		52,598			70,236			76,343			(29,873	)
Accrued expenses and other liabilities		193,800			184,607			9,193			175,612			165,358			192,843			957

Total liabilities		21,335,630			20,816,393			519,237			20,739,968			20,341,503			20,551,336			784,294
Stockholders’ Equity
Preferred equity		61,862			62,737			(875	)		63,272			63,272			63,272			(1,410	)
Common stock		1,750			1,750			—			1,750			1,750			1,750			—
Surplus		1,617,990			1,614,516			3,474			1,610,243			1,605,966			1,602,136			15,854
Retained earnings		1,392,508			1,361,498			31,010			1,330,737			1,297,692			1,281,811			110,697
Accumulated other comprehensive income (loss)		(24,244	)		(37,120	)		12,876			(25,015	)		42,991			48,603			(72,847	)
Treasury stock		(158,576	)		(131,099	)		(27,477	)		(104,011	)		(75,406	)		(61,173	)		(97,403	)

Total stockholders’ equity		2,891,290			2,872,282			19,008			2,876,976			2,936,265			2,936,399			(45,109	)

*Total liabilities and stockholders’ equity*	$	24,226,920			23,688,675		$	538,245			23,616,944		$	23,277,768		$	23,487,735		$	739,185

Page 1

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)


	For The Three Months Ended December 31,						Quarter						For The Year Ended December 31,					Year-to-Date
(in thousands, except per share amounts)	2013			2012			$ Change			% Change			2013		2012			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	148,884		$	150,107		$	(1,223	)		(0.8	%)	$	587,526	$	595,965		$	(8,439	)		(1.4	%)
Interest and dividends on investment securities:
Taxable		24,316			20,368			3,948			19.4	%		88,919		86,945			1,974			2.3	%
Tax-exempt		6,884			7,119			(235	)		(3.3	%)		27,345		28,655			(1,310	)		(4.6	%)
Other interest		1,453			2,876			(1,423	)		(49.5	%)		5,193		6,719			(1,526	)		(22.7	%)

Total interest income		181,537			180,470			1,067			0.6	%		708,983		718,284			(9,301	)		(1.3	%)
*Interest Expense*
Interest on deposits		7,340			9,091			(1,751	)		(19.3	%)		31,267		41,431			(10,164	)		(24.5	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		271			558			(287	)		(51.4	%)		1,322		2,687			(1,365	)		(50.8	%)
Interest on other short-term funding		228			226			2			0.9	%		1,519		3,294			(1,775	)		(53.9	%)
Interest on long-term funding		6,499			9,140			(2,641	)		(28.9	%)		29,332		44,880			(15,548	)		(34.6	%)

Total interest expense		14,338			19,015			(4,677	)		(24.6	%)		63,440		92,292			(28,852	)		(31.3	%)

*Net Interest Income*		167,199			161,455			5,744			3.6	%		645,543		625,992			19,551			3.1	%
Provision for loan losses		2,000			3,000			(1,000	)		(33.3	%)		10,000		3,000			7,000			233.3	%

Net interest income after provision for loan losses		165,199			158,455			6,744			4.3	%		635,543		622,992			12,551			2.0	%
*Noninterest Income*
Trust service fees		11,938			10,429			1,509			14.5	%		45,633		40,737			4,896			12.0	%
Service charges on deposit accounts		17,330			16,817			513			3.1	%		70,009		68,917			1,092			1.6	%
Card-based and other nondeposit fees		12,684			12,690			(6	)		(0.0	%)		49,913		47,862			2,051			4.3	%
Insurance commissions		11,274			10,862			412			3.8	%		44,024		47,014			(2,990	)		(6.4	%)
Brokerage and annuity commissions		3,881			3,678			203			5.5	%		14,877		15,643			(766	)		(4.9	%)

Total core fee-based revenue		57,107			54,476			2,631			4.8	%		224,456		220,173			4,283			1.9	%
Mortgage banking, net		8,277			13,530			(5,253	)		(38.8	%)		48,847		63,500			(14,653	)		(23.1	%)
Capital market fees, net		2,771			4,243			(1,472	)		(34.7	%)		13,080		14,241			(1,161	)		(8.2	%)
Bank owned life insurance income		2,787			3,206			(419	)		(13.1	%)		11,855		13,952			(2,097	)		(15.0	%)
Asset gains (losses), net		2,687			(209	)		2,896			N/M			5,413		(12,096	)		17,509			(144.8	%)
Investment securities gains (losses), net		(18	)		152			(170	)		(111.8	%)		564		4,261			(3,697	)		(86.8	%)
Other		2,262			2,507			(245	)		(9.8	%)		8,884		9,259			(375	)		(4.1	%)

Total noninterest income		75,873			77,905			(2,032	)		(2.6	%)		313,099		313,290			(191	)		(0.1	%)
*Noninterest Expense*
Personnel expense		101,215			98,073			3,142			3.2	%		397,015		381,404			15,611			4.1	%
Occupancy		14,684			17,273			(2,589	)		(15.0	%)		59,409		60,794			(1,385	)		(2.3	%)
Equipment		6,509			6,444			65			1.0	%		25,351		23,566			1,785			7.6	%
Technology		12,963			11,706			1,257			10.7	%		49,445		43,548			5,897			13.5	%
Business development and advertising		7,834			5,395			2,439			45.2	%		23,346		21,303			2,043			9.6	%
Other intangible amortization		1,011			1,049			(38	)		(3.6	%)		4,043		4,195			(152	)		(3.6	%)
Loan expense		3,677			3,130			547			17.5	%		13,162		12,285			877			7.1	%
Legal and professional fees		5,916			8,174			(2,258	)		(27.6	%)		20,226		31,232			(11,006	)		(35.2	%)
Losses other than loans		1,859			3,071			(1,212	)		(39.5	%)		1,942		12,258			(10,316	)		(84.2	%)
Foreclosure/OREO expense		2,829			3,293			(464	)		(14.1	%)		10,068		15,069			(5,001	)		(33.2	%)
FDIC expense		4,879			4,813			66			1.4	%		19,461		19,478			(17	)		(0.1	%)
Other		16,091			13,907			2,184			15.7	%		57,281		56,691			590			1.0	%

Total noninterest expense		179,467			176,328			3,139			1.8	%		680,749		681,823			(1,074	)		(0.2	%)

*Income before income taxes*		61,605			60,032			1,573			2.6	%		267,893		254,459			13,434			5.3	%
Income tax expense		13,847			13,404			443			3.3	%		79,201		75,486			3,715			4.9	%

*Net income*		47,758			46,628			1,130			2.4	%		188,692		178,973			9,719			5.4	%
Preferred stock dividends		1,273			1,300			(27	)		(2.1	%)		5,158		5,200			(42	)		(0.8	%)

*Net income available to common equity*	$	46,485		$	45,328		$	1,157			2.6	%	$	183,534	$	173,773		$	9,761			5.6	%

Earnings Per Common Share:
Basic	$	0.28		$	0.26		$	0.02			7.7	%	$	1.10	$	1.00		$	0.10			10.0	%
Diluted	$	0.28		$	0.26		$	0.02			7.7	%	$	1.10	$	1.00		$	0.10			10.0	%
Average Common Shares Outstanding:
Basic		162,611			170,707			(8,096	)		(4.7	%)		165,584		172,255			(6,671	)		(3.9	%)
Diluted		163,235			170,896			(7,661	)		(4.5	%)		165,802		172,357			(6,555	)		(3.8	%)

N/M = Not meaningful.

Page 2

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)—Quarterly Trend


							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	4Q13			3Q13			$ Change			% Change			2Q13			1Q13			4Q12			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	148,884		$	146,219		$	2,665			1.8	%	$	146,896		$	145,527		$	150,107		$	(1,223	)		(0.8	%)
Interest and dividends on investment securities:
Taxable		24,316			21,544			2,772			12.9	%		21,446			21,613			20,368			3,948			19.4	%
Tax-exempt		6,884			6,711			173			2.6	%		6,785			6,965			7,119			(235	)		(3.3	%)
Other interest		1,453			1,260			193			15.3	%		1,233			1,247			2,876			(1,423	)		(49.5	%)

Total interest income		181,537			175,734			5,803			3.3	%		176,360			175,352			180,470			1,067			0.6	%
*Interest Expense*
Interest on deposits		7,340			7,617			(277	)		(3.6	%)		7,769			8,541			9,091			(1,751	)		(19.3	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		271			308			(37	)		(12.0	%)		333			410			558			(287	)		(51.4	%)
Interest on other short-term funding		228			434			(206	)		(47.5	%)		525			332			226			2			0.9	%
Interest on long-term funding		6,499			6,866			(367	)		(5.3	%)		7,551			8,416			9,140			(2,641	)		(28.9	%)

Total interest expense		14,338			15,225			(887	)		(5.8	%)		16,178			17,699			19,015			(4,677	)		(24.6	%)

*Net Interest Income*		167,199			160,509			6,690			4.2	%		160,182			157,653			161,455			5,744			3.6	%
Provision for loan losses		2,000			—			2,000			N/M			4,000			4,000			3,000			(1,000	)		(33.3	%)

Net interest income after provision for loan losses		165,199			160,509			4,690			2.9	%		156,182			153,653			158,455			6,744			4.3	%
*Noninterest Income*
Trust service fees		11,938			11,380			558			4.9	%		11,405			10,910			10,429			1,509			14.5	%
Service charges on deposit accounts		17,330			18,407			(1,077	)		(5.9	%)		17,443			16,829			16,817			513			3.1	%
Card-based and other nondeposit fees		12,684			12,688			(4	)		(0.0	%)		12,591			11,950			12,690			(6	)		(0.0	%)
Insurance commissions		11,274			11,356			(82	)		(0.7	%)		9,631			11,763			10,862			412			3.8	%
Brokerage and annuity commissions		3,881			3,792			89			2.3	%		3,688			3,516			3,678			203			5.5	%

Total core fee-based revenue		57,107			57,623			(516	)		(0.9	%)		54,758			54,968			54,476			2,631			4.8	%
Mortgage banking, net		8,277			3,542			4,735			133.7	%		19,263			17,765			13,530			(5,253	)		(38.8	%)
Capital market fees, net		2,771			2,652			119			4.5	%		5,074			2,583			4,243			(1,472	)		(34.7	%)
Bank owned life insurance income		2,787			2,817			(30	)		(1.1	%)		3,281			2,970			3,206			(419	)		(13.1	%)
Asset gains (losses), net		2,687			1,934			753			38.9	%		(44	)		836			(209	)		2,896			N/M
Investment securities gains (losses), net		(18	)		248			(266	)		(107.3	%)		34			300			152			(170	)		(111.8	%)
Other		2,262			2,100			162			7.7	%		1,944			2,578			2,507			(245	)		(9.8	%)

Total noninterest income		75,873			70,916			4,957			7.0	%		84,310			82,000			77,905			(2,032	)		(2.6	%)
*Noninterest Expense*
Personnel expense		101,215			98,102			3,113			3.2	%		99,791			97,907			98,073			3,142			3.2	%
Occupancy		14,684			14,758			(74	)		(0.5	%)		14,305			15,662			17,273			(2,589	)		(15.0	%)
Equipment		6,509			6,213			296			4.8	%		6,462			6,167			6,444			65			1.0	%
Technology		12,963			12,323			640			5.2	%		12,651			11,508			11,706			1,257			10.7	%
Business development and advertising		7,834			5,947			1,887			31.7	%		5,028			4,537			5,395			2,439			45.2	%
Other intangible amortization		1,011			1,010			1			0.1	%		1,011			1,011			1,049			(38	)		(3.6	%)
Loan expense		3,677			3,157			520			16.5	%		3,044			3,284			3,130			547			17.5	%
Legal and professional fees		5,916			3,482			2,434			69.9	%		5,483			5,345			8,174			(2,258	)		(27.6	%)
Losses other than loans		1,859			(1,400	)		3,259			(232.8	%)		1,799			(316	)		3,071			(1,212	)		(39.5	%)
Foreclosure/OREO expense		2,829			2,515			314			12.5	%		2,302			2,422			3,293			(464	)		(14.1	%)
FDIC expense		4,879			4,755			124			2.6	%		4,395			5,432			4,813			66			1.4	%
Other		16,091			13,509			2,582			19.1	%		13,725			13,956			13,907			2,184			15.7	%

Total noninterest expense		179,467			164,371			15,096			9.2	%		169,996			166,915			176,328			3,139			1.8	%

*Income before income taxes*		61,605			67,054			(5,449	)		(8.1	%)		70,496			68,738			60,032			1,573			2.6	%
Income tax expense		13,847			21,396			(7,549	)		(35.3	%)		22,608			21,350			13,404			443			3.3	%

*Net income*		47,758			45,658			2,100			4.6	%		47,888			47,388			46,628			1,130			2.4	%
Preferred stock dividends		1,273			1,285			(12	)		(0.9	%)		1,300			1,300			1,300			(27	)		(2.1	%)

*Net income available to common equity*	$	46,485		$	44,373		$	2,112			4.8	%	$	46,588		$	46,088		$	45,328		$	1,157			2.6	%

Earnings Per Common Share:
Basic	$	0.28		$	0.27		$	0.01			3.7	%	$	0.28		$	0.27		$	0.26		$	0.02			7.7	%
Diluted	$	0.28		$	0.27		$	0.01			3.7	%	$	0.28		$	0.27		$	0.26		$	0.02			7.7	%
Average Common Shares Outstanding:
Basic		162,611			164,954			(2,343	)		(1.4	%)		166,605			168,234			170,707			(8,096	)		(4.7	%)
Diluted		163,235			165,443			(2,208	)		(1.3	%)		166,748			168,404			170,896			(7,661	)		(4.5	%)

N/M = Not meaningful.

Page 3

Associated Banc-Corp

Selected Quarterly Information


(in thousands, except per share, full time equivalent employee data and otherwise noted)	YTD 2013			YTD 2012			4th Qtr 2013			3rd Qtr 2013			2nd Qtr 2013			1st Qtr 2013			4th Qtr 2012
*Per Common Share Data*
Dividends	$	0.33		$	0.23		$	0.09		$	0.08		$	0.08		$	0.08		$	0.08
Market Value:
High	$	17.60		$	14.63		$	17.56		$	17.60		$	15.69		$	15.30		$	13.54
Low		13.46			11.43			15.34			15.29			13.81			13.46			12.19
Close		17.40			13.12			17.40			15.49			15.55			15.19			13.12
Book value		17.40			16.97			17.40			17.10			16.97			17.13			16.97
Tier 1 common equity / share		11.77			11.08			11.77			11.59			11.42			11.22			11.08
Tangible book value / share		11.62			11.39			11.62			11.37			11.28			11.51			11.39
*Performance Ratios (annualized)*
Return on average assets		0.81	%		0.81	%		0.80	%		0.78	%		0.82	%		0.83	%		0.83	%
Return on average tangible common equity		9.73			8.96			9.87			9.48			9.76			9.81			9.15
Return on average Tier 1 common equity (1)		9.77			9.45			9.78			9.31			9.94			10.07			9.61
Effective tax rate		29.56			29.67			22.48			31.91			32.07			31.06			22.33
Dividend payout ratio (3)		30.00			23.00			32.14			29.63			28.57			29.63			30.77
*Average Balances*
Common stockholders’ equity	$	2,829,300		$	2,885,716		$	2,810,130		$	2,799,885		$	2,857,722		$	2,850,227		$	2,915,346
Average Tier 1 common equity (1)		1,878,371			1,838,424			1,885,377			1,890,398			1,880,826			1,856,431			1,876,686
*Selected trend information*
Average full time equivalent employees		4,728			4,968			4,584			4,699			4,790			4,841			4,915
Trust assets under management, at market value ($ in millions)	$	7,424		$	6,454		$	7,424		$	7,078		$	6,894		$	6,913		$	6,454
Mortgage loans originated for sale during period		2,304,006			2,797,431			326,648			513,549			782,398			681,410			780,469
Mortgage portfolio serviced for others ($ in millions)		8,084			7,453			8,084			8,014			7,794			7,585			7,453
Mortgage servicing rights, net / Portfolio serviced for others		0.78	%		0.62	%		0.78	%		0.79	%		0.79	%		0.69	%		0.62	%
*At Period End*
Loans / deposits								92.06	%		84.99	%		91.91	%		89.27	%		90.97	%
Risk weighted assets ($ in millions) (4) (6)								16,694			16,359			16,479			16,163			16,149
Tier 1 common equity (1)								1,913,320			1,904,060			1,893,875			1,881,410			1,875,534
Stockholders’ equity / assets								11.93	%		12.13	%		12.18	%		12.61	%		12.50	%
Tangible common equity / tangible assets (5)								8.11	%		8.21	%		8.25	%		8.64	%		8.56	%
Tangible equity / tangible assets (5)								8.38	%		8.49	%		8.53	%		8.92	%		8.84	%
Tier 1 common equity / risk-weighted assets (4) (6)								11.46	%		11.64	%		11.49	%		11.64	%		11.61	%
Tier 1 leverage ratio (4) (6)								8.70	%		8.76	%		8.73	%		8.78	%		8.98	%
Tier 1 risk-based capital ratio (4) (6)								11.83	%		12.02	%		11.88	%		12.03	%		12.01	%
Total risk-based capital ratio (4) (6)								13.09	%		13.44	%		13.29	%		13.45	%		13.42	%
Shares outstanding, end of period								162,623			164,303			165,837			167,673			169,304
*Non-GAAP financial measures reconciliation*
Efficiency ratio (2)		71.05	%		72.92	%		73.83	%		71.10	%		69.54	%		69.74	%		73.71	%
Taxable equivalent adjustment		(1.46	)		(1.60	)		(1.50	)		(1.49	)		(1.39	)		(1.46	)		(1.57	)
Asset gains (losses), net		0.40			(0.90	)		0.80			0.58			(0.01	)		0.24			(0.06	)
Other intangible amortization		(0.42	)		(0.43	)		(0.42	)		(0.44	)		(0.41	)		(0.42	)		(0.43	)
Efficiency ratio, fully taxable equivalent (2)		69.57	%		69.99	%		72.71	%		69.75	%		67.73	%		68.10	%		71.65	%

(1)

Tier 1 common equity, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of our capital with the capital of other financial services companies. Management uses Tier 1 common equity, along with other capital measures, to assess and monitor our capital position. Tier 1 common equity (period end and average) is Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities.

(2)

Efficiency ratio is defined by the Federal Reserve guidance as noninterest expense divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and asset gains / losses, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and investment securities. Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net).

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

(4)	December 31, 2013 data is estimated.

(5)

Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.

(6)

The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes similar capital adequacy requirements and standards for the Bank. Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital. The sum of Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital. Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets consist of total assets plus certain off-balance sheet and market items, subject to adjustment for predefined credit risk factors.

Page 4

Associated Banc-Corp

Selected Asset Quality Information


(in thousands)	Dec 31, 2013			Sep 30, 2013			Dec 13 vs Sep 13 % Change			Jun 30, 2013			Mar 31, 2013			Dec 31, 2012			Dec 13 vs Dec 12 % Change
*Allowance for Loan Losses*
Beginning balance	$	271,724		$	277,218			(2.0	%)	$	286,923		$	297,409		$	315,150			(13.8	%)
Provision for loan losses		2,000			—			N/M			4,000			4,000			3,000			(33.3	%)
Charge offs		(18,742	)		(20,288	)		(7.6	%)		(21,904	)		(27,128	)		(30,417	)		(38.4	%)
Recoveries		13,333			14,794			(9.9	%)		8,199			12,642			9,676			37.8	%

Net charge offs		(5,409	)		(5,494	)		(1.5	%)		(13,705	)		(14,486	)		(20,741	)		(73.9	%)

Ending balance	$	268,315		$	271,724			(1.3	%)	$	277,218		$	286,923		$	297,409			(9.8	%)

Reserve for losses on unfunded commitments	$	21,900		$	21,600			1.4	%	$	22,400		$	21,100		$	21,800			0.5	%

*Net Charge Offs*	Dec 31, 2013			Sep 30, 2013			Dec 13 vs Sep 13 % Change			Jun 30, 2013			Mar 31, 2013			Dec 31, 2012			Dec 13 vs Dec 12 % Change
Commercial and industrial	$	4,555		$	(447	)		N/M		$	1,477		$	696		$	2,630			73.2	%
Commercial real estate—owner occupied		967			2,076			(53.4	%)		1,574			1,518			2,056			(53.0	%)
Lease financing		(16	)		—			N/M			16			(12	)		754			(102.1	%)

Commercial and business lending		5,506			1,629			238.0	%		3,067			2,202			5,440			1.2	%
Commercial real estate—investor		137			(414	)		(133.1	%)		2,999			163			(232	)		(159.1	%)
Real estate construction		(3,130	)		(303	)		N/M			(95	)		1,392			858			N/M

Commercial real estate lending		(2,993	)		(717	)		317.4	%		2,904			1,555			626			N/M

Total commercial		2,513			912			175.5	%		5,971			3,757			6,066			(58.6	%)
Home equity revolving lines of credit		966			767			25.9	%		2,512			3,615			3,590			(73.1	%)
Home equity loans 1st liens		372			564			(34.0	%)		954			765			1,060			(64.9	%)
Home equity loans junior liens		1,111			800			38.9	%		2,034			1,957			3,421			(67.5	%)

Home equity		2,449			2,131			14.9	%		5,500			6,337			8,071			(69.7	%)
Installment		(611	)		124			N/M			66			177			1,027			(159.5	%)
Residential mortgage		1,058			2,327			(54.5	%)		2,168			4,215			5,577			(81.0	%)

Total consumer		2,896			4,582			(36.8	%)		7,734			10,729			14,675			(80.3	%)

Total net charge offs	$	5,409		$	5,494			(1.5	%)	$	13,705		$	14,486		$	20,741			(73.9	%)


Net Charge Offs to Average Loans (in basis points) *	Dec 31, 2013			Sep 30, 2013						Jun 30, 2013			Mar 31, 2013			Dec 31, 2012
Commercial and industrial		38			(4	)					13			6			25
Commercial real estate—owner occupied		34			72						54			51			69
Lease financing		(12	)		—						12			(8	)		480

Commercial and business lending		37			11						21			16			40
Commercial real estate—investor		2			(6	)					41			2			(3	)
Real estate construction		(145	)		(15	)					(5	)		82			54

Commercial real estate lending		(32	)		(8	)					31			18			7

Total commercial		10			4						25			17			27
Home equity revolving lines of credit		44			34						112			159			148
Home equity loans 1st liens		19			27						42			32			40
Home equity loans junior liens		205			140						336			303			486

Home equity		52			44						108			119			140
Installment		(59	)		11						6			16			86
Residential mortgage		11			25						24			47			64

Total consumer		19			30						50			70			93

Total net charge offs		14			14						35			38			55


*Credit Quality*	Dec 31, 2013			Sep 30, 2013			Dec 13 vs Sep 13 % Change			Jun 30, 2013			Mar 31, 2013			Dec 31, 2012			Dec 13 vs Dec 12 % Change
Nonaccrual loans	$	185,428		$	207,594			(10.7	%)	$	217,493		$	225,436		$	252,868			(26.7	%)
Other real estate owned (OREO)		18,118			25,077			(27.8	%)		27,407			35,156			34,900			(48.1	%)

Total nonperforming assets	$	203,546		$	232,671			(12.5	%)	$	244,900		$	260,592		$	287,768			(29.3	%)

Loans 90 or more days past due and still accruing		2,350			2,063			13.9	%		1,548			5,690			2,289			2.7	%
Restructured loans (accruing)		123,985			117,043			5.9	%		119,066			120,093			121,087			2.4	%
Allowance for loan losses / loans		1.69	%		1.74	%					1.76	%		1.84	%		1.93	%
Allowance for loan losses / nonaccrual loans		144.70			130.89						127.46			127.27			117.61
Nonaccrual loans / total loans		1.17			1.33						1.38			1.45			1.64
Nonperforming assets / total loans plus OREO		1.28			1.49						1.55			1.67			1.86
Nonperforming assets / total assets		0.84			0.98						1.04			1.12			1.23
Net charge offs / average loans (annualized)		0.14			0.14						0.35			0.38			0.55
Year-to-date net charge offs / average loans		0.25			0.29						0.36			0.38			0.57
Nonaccrual loans by type:
Commercial and industrial	$	37,719		$	36,105			4.5	%	$	30,302		$	33,242		$	39,182			(3.7	%)
Commercial real estate—owner occupied		29,664			28,301			4.8	%		24,003			23,199			24,254			22.3	%
Lease financing		69			99			(30.3	%)		72			2,165			3,031			(97.7	%)

Commercial and business lending		67,452			64,505			4.6	%		54,377			58,606			66,467			1.5	%
Commercial real estate—investor		37,596			49,841			(24.6	%)		60,780			56,776			58,687			(35.9	%)
Real estate construction		6,467			18,670			(65.4	%)		21,419			22,166			27,302			(76.3	%)

Commercial real estate lending		44,063			68,511			(35.7	%)		82,199			78,942			85,989			(48.8	%)

Total commercial		111,515			133,016			(16.2	%)		136,576			137,548			152,456			(26.9	%)
Home equity revolving lines of credit		11,883			11,991			(0.9	%)		12,940			15,914			20,446			(41.9	%)
Home equity loans 1st liens		6,135			6,131			0.1	%		7,898			8,626			8,717			(29.6	%)
Home equity loans junior liens		7,149			7,321			(2.3	%)		7,296			9,405			10,052			(28.9	%)

Home equity		25,167			25,443			(1.1	%)		28,134			33,945			39,215			(35.8	%)
Installment		1,114			1,269			(12.2	%)		1,533			1,762			1,838			(39.4	%)
Residential mortgage		47,632			47,866			(0.5	%)		51,250			52,181			59,359			(19.8	%)

Total consumer		73,913			74,578			(0.9	%)		80,917			87,888			100,412			(26.4	%)

Total nonaccrual loans	$	185,428		$	207,594			(10.7	%)	$	217,493		$	225,436		$	252,868			(26.7	%)

*	Annualized.

N/M = Not meaningful.

Page 5

Associated Banc-Corp

Selected Asset Quality Information (continued)


					Dec 13 vs Sep 13									Dec 13 vs Dec 12
(in thousands)	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
*Restructured loans (accruing)*
Commercial and industrial	$	32,517	$	32,145		1.2	%	$	30,970	$	29,251	$	28,140		15.6	%
Commercial real estate—owner occupied		13,009		14,425		(9.8	%)		14,336		12,888		13,852		(6.1	%)
Lease financing		—		—		N/M			—		—		—		N/M

Commercial and business lending		45,526		46,570		(2.2	%)		45,306		42,139		41,992		8.4	%
Commercial real estate—investor		44,946		35,073		28.1	%		37,299		41,253		41,660		7.9	%
Real estate construction		3,793		4,825		(21.4	%)		5,365		5,540		4,530		(16.3	%)

Commercial real estate lending		48,739		39,898		22.2	%		42,664		46,793		46,190		5.5	%

Total commercial		94,265		86,468		9.0	%		87,970		88,932		88,182		6.9	%
Home equity revolving lines of credit		1,117		1,118		(0.1	%)		1,130		880		867		28.8	%
Home equity loans 1st liens		1,436		1,628		(11.8	%)		1,684		1,783		1,930		(25.6	%)
Home equity loans junior liens		7,080		7,113		(0.5	%)		7,119		6,893		7,171		(1.3	%)

Home equity		9,633		9,859		(2.3	%)		9,933		9,556		9,968		(3.4	%)
Installment		246		416		(40.9	%)		570		664		653		(62.3	%)
Residential mortgage		19,841		20,300		(2.3	%)		20,593		20,941		22,284		(11.0	%)

Total consumer		29,720		30,575		(2.8	%)		31,096		31,161		32,905		(9.7	%)

Total restructured loans (accruing)	$	123,985	$	117,043		5.9	%	$	119,066	$	120,093	$	121,087		2.4	%

Restructured loans in nonaccrual loans (not included above)	$	59,585	$	69,311		(14.0	%)	$	70,354	$	67,811	$	80,590		(26.1	%)

					Dec 13 vs Sep 13									Dec 13 vs Dec 12
*Loans Past Due 30-89 Days*	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
Commercial and industrial	$	6,826	$	6,518		4.7	%	$	8,516	$	10,263	$	11,339		(39.8	%)
Commercial real estate—owner occupied		3,106		8,505		(63.5	%)		8,105		6,804		11,053		(71.9	%)
Lease financing		—		1,000		N/M			57		283		12		N/M

Commercial and business lending		9,932		16,023		(38.0	%)		16,678		17,350		22,404		(55.7	%)
Commercial real estate—investor		23,215		21,747		6.8	%		18,269		25,201		13,472		72.3	%
Real estate construction		1,954		820		138.3	%		797		2,287		3,155		(38.1	%)

Commercial real estate lending		25,169		22,567		11.5	%		19,066		27,488		16,627		51.4	%

Total commercial		35,101		38,590		(9.0	%)		35,744		44,838		39,031		(10.1	%)
Home equity revolving lines of credit		6,728		6,318		6.5	%		7,739		1,832		7,829		(14.1	%)
Home equity loans 1st liens		1,110		1,376		(19.3	%)		1,857		1,869		1,457		(23.8	%)
Home equity loans junior liens		2,842		2,206		28.8	%		2,709		2,848		4,252		(33.2	%)

Home equity		10,680		9,900		7.9	%		12,305		6,549		13,538		(21.1	%)
Installment		1,150		1,170		(1.7	%)		1,434		2,500		2,109		(45.5	%)
Residential mortgage		6,118		6,722		(9.0	%)		9,920		8,793		9,403		(34.9	%)

Total consumer		17,948		17,792		0.9	%		23,659		17,842		25,050		(28.4	%)

Total loans past due 30-89 days	$	53,049	$	56,382		(5.9	%)	$	59,403	$	62,680	$	64,081		(17.2	%)


					Dec 13 vs Sep 13									Dec 13 vs Dec 12
*Potential Problem Loans*	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
Commercial and industrial	$	113,669	$	112,947		0.6	%	$	127,382	$	127,367	$	128,434		(11.5	%)
Commercial real estate—owner occupied		56,789		61,256		(7.3	%)		75,074		93,098		99,592		(43.0	%)
Lease financing		1,784		207		N/M			279		251		264		N/M

Commercial and business lending		172,242		174,410		(1.2	%)		202,735		220,716		228,290		(24.6	%)
Commercial real estate—investor		52,429		87,526		(40.1	%)		89,342		101,775		107,068		(51.0	%)
Real estate construction		5,263		7,540		(30.2	%)		9,184		10,040		13,092		(59.8	%)

Commercial real estate lending		57,692		95,066		(39.3	%)		98,526		111,815		120,160		(52.0	%)

Total commercial		229,934		269,476		(14.7	%)		301,261		332,531		348,450		(34.0	%)
Home equity revolving lines of credit		303		170		78.2	%		308		450		520		(41.7	%)
Home equity loans 1st liens		—		—		N/M			—		—		—		N/M
Home equity loans junior liens		1,810		2,067		(12.4	%)		2,307		2,871		3,150		(42.5	%)

Home equity		2,113		2,237		(5.5	%)		2,615		3,321		3,670		(42.4	%)
Installment		50		67		(25.4	%)		83		99		111		(55.0	%)
Residential mortgage		3,312		5,342		(38.0	%)		5,917		7,882		8,762		(62.2	%)

Total consumer		5,475		7,646		(28.4	%)		8,615		11,302		12,543		(56.4	%)

Total potential problem loans	$	235,409	$	277,122		(15.1	%)	$	309,876	$	343,833	$	360,993		(34.8	%)

N/M = Not meaningful.

Page 6


*Associated Banc-Corp*
*Net Interest Income Analysis—Taxable Equivalent Basis*
*Sequential Quarter*	Three months ended December 31, 2013							Three months ended September 30, 2013
	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	$	5,882,438	$	51,498		3.47	%	$	5,876,745	$	52,215		3.53	%
Commercial real estate lending		3,736,314		40,241		4.28			3,768,895		37,630		3.96

Total commercial		9,618,752		91,739		3.79			9,645,640		89,845		3.70
Residential mortgage		3,856,944		32,201		3.34			3,714,459		30,479		3.28
Retail		2,272,588		25,851		4.53			2,364,266		26,816		4.51

Total loans		15,748,284		149,791		3.78			15,724,365		147,140		3.72
Investment securities		5,188,616		35,331		2.72			4,980,228		32,282		2.59
Other short-term investments		305,165		1,453		1.90			334,874		1,260		1.51

Investments and other		5,493,781		36,784		2.68			5,315,102		33,542		2.52

Total earning assets		21,242,065		186,575		3.50			21,039,467		180,682		3.42
Other assets, net		2,316,660							2,274,110

Total assets	$	23,558,725						$	23,313,577

Interest-bearing liabilities:
Savings deposits	$	1,200,338	$	248		0.08	%	$	1,204,743	$	249		0.08	%
Interest-bearing demand deposits		2,852,090		1,047		0.15			2,810,962		1,101		0.16
Money market deposits		7,748,650		3,399		0.17			7,556,050		3,449		0.18
Time deposits		1,727,138		2,646		0.61			1,773,760		2,818		0.63

Total interest-bearing deposits		13,528,216		7,340		0.22			13,345,515		7,617		0.23
Federal funds purchased and securities sold under agreements to repurchase		613,943		271		0.18			633,594		308		0.19
Other short-term funding		726,551		228		0.12			1,417,113		434		0.12
Long-term funding		1,266,464		6,499		2.05			614,708		6,866		4.47

Total short and long-term funding		2,606,958		6,998		1.07			2,665,415		7,608		1.14

Total interest-bearing liabilities		16,135,174		14,338		0.35			16,010,930		15,225		0.38
Noninterest-bearing demand deposits		4,353,315							4,264,304
Other liabilities		197,598							175,453
Stockholders’ equity		2,872,638							2,862,890

Total liabilities and stockholders’ equity	$	23,558,725						$	23,313,577

Net interest income and rate spread (1)			$	172,237		3.15	%			$	165,457		3.04	%

Net interest margin (1)						3.23	%						3.13	%
Taxable equivalent adjustment			$	5,038						$	4,948


*Net Interest Income Analysis—Taxable Equivalent Basis*

*Comparable Quarter*	Three months ended December 31, 2013							Three months ended December 31, 2012
	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	$	5,882,438	$	51,498		3.47	%	$	5,431,195	$	53,442		3.92	%
Commercial real estate lending		3,736,314		40,241		4.28			3,451,104		35,623		4.11

Total commercial		9,618,752		91,739		3.79			8,882,299		89,065		3.99
Residential mortgage		3,856,944		32,201		3.34			3,485,719		30,126		3.46
Retail		2,272,588		25,851		4.53			2,763,084		31,865		4.59

Total loans		15,748,284		149,791		3.78			15,131,102		151,056		3.98
Investment securities		5,188,616		35,331		2.72			4,545,178		31,759		2.79
Other short-term investments		305,165		1,453		1.90			356,152		2,876		3.22

Investments and other		5,493,781		36,784		2.68			4,901,330		34,635		2.83

Total earning assets		21,242,065		186,575		3.50			20,032,432		185,691		3.70
Other assets, net		2,316,660							2,429,454

Total assets	$	23,558,725						$	22,461,886

Interest-bearing liabilities:
Savings deposits	$	1,200,338	$	248		0.08	%	$	1,129,983	$	225		0.08	%
Interest-bearing demand deposits		2,852,090		1,047		0.15			2,236,826		954		0.17
Money market deposits		7,748,650		3,399		0.17			6,797,306		4,103		0.24
Time deposits		1,727,138		2,646		0.61			2,037,386		3,809		0.74

Total interest-bearing deposits		13,528,216		7,340		0.22			12,201,501		9,091		0.30
Federal funds purchased and securities sold under agreements to repurchase		613,943		271		0.18			984,869		558		0.23
Other short-term funding		726,551		228		0.12			550,137		226		0.16
Long-term funding		1,266,464		6,499		2.05			1,103,655		9,140		3.31

Total short and long-term funding		2,606,958		6,998		1.07			2,638,661		9,924		1.50

Total interest-bearing liabilities		16,135,174		14,338		0.35			14,840,162		19,015		0.51
Noninterest-bearing demand deposits		4,353,315							4,448,767
Other liabilities		197,598							194,339
Stockholders’ equity		2,872,638							2,978,618

Total liabilities and stockholders’ equity	$	23,558,725						$	22,461,886

Net interest income and rate spread (1)			$	172,237		3.15	%			$	166,676		3.19	%

Net interest margin (1)						3.23	%						3.32	%
Taxable equivalent adjustment			$	5,038						$	5,221

(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


*Associated Banc-Corp*
*Net Interest Income Analysis—Taxable Equivalent Basis*
*Year Over Year*	Year ended December 31, 2013									Year ended December 31, 2012
	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	$	5,809,578		$	208,039			3.58	%	$	5,139,155	$	202,444		3.94	%
Commercial real estate lending		3,705,526			149,539			4.04			3,350,190		140,881		4.21

Total commercial		9,515,104			357,578			3.76			8,489,345		343,325		4.04
Residential mortgage		3,714,544			123,275			3.32			3,330,123		121,399		3.65
Retail		2,433,497			110,338			4.53			2,922,317		135,094		4.62

Total loans		15,663,145			591,191			3.77			14,741,785		599,818		4.07
Investment securities		4,995,331			132,671			2.66			4,469,541		132,793		2.97
Other short-term investments		321,652			5,193			1.61			402,451		6,719		1.67

Investments and other		5,316,983			137,864			2.59			4,871,992		139,512		2.86

Total earning assets		20,980,128			729,055			3.47			19,613,777		739,330		3.77
Other assets, net		2,325,630									2,362,580

Total assets	$	23,305,758								$	21,976,357

Interest-bearing liabilities:
Savings deposits	$	1,188,910		$	942			0.08	%	$	1,096,692	$	851		0.08	%
Interest-bearing demand deposits		2,827,778			4,517			0.16			2,148,459		3,741		0.17
Money market deposits		7,322,476			13,702			0.19			6,148,663		15,336		0.25
Time deposits		1,849,718			12,106			0.65			2,239,709		21,503		0.96

Total interest-bearing deposits		13,188,882			31,267			0.24			11,633,523		41,431		0.36
Federal funds purchased and securities sold under agreements to repurchase		675,574			1,322			0.20			1,177,105		2,687		0.23
Other short-term funding		1,198,264			1,519			0.13			936,376		3,294		0.35
Long-term funding		901,927			29,332			3.25			1,158,731		44,880		3.87

Total short and long-term funding		2,775,765			32,173			1.16			3,272,212		50,861		1.55

Total interest-bearing liabilities		15,964,647			63,440			0.40			14,905,735		92,292		0.62
Noninterest-bearing demand deposits		4,249,313									3,948,846
Other liabilities		199,486									172,788
Stockholders’ equity		2,892,312									2,948,988

Total liabilities and stockholders’ equity	$	23,305,758								$	21,976,357

Net interest income and rate spread (1)				$	665,615			3.07	%			$	647,038		3.15	%

Net interest margin (1)								3.17	%						3.30	%
Taxable equivalent adjustment				$	20,072							$	21,046

(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.
*Net Interest Income Analysis—Taxable Equivalent Basis*
*Year Over Year Change*	Years Ended December 31, 2013 vs December 31, 2012
	Change in			Change in			$ Balances
(in thousands)	Balance			Income /Expense			Growth / Decline
Earning assets:
Loans:
Commercial and business lending	$	670,423		$	5,595			13.0	%
Commercial real estate lending		355,336			8,658			10.6

Total commercial		1,025,759			14,253			12.1
Residential mortgage		384,421			1,876			11.5
Retail		(488,820	)		(24,756	)		(16.7	)

Total loans		921,360			(8,627	)		6.2
Investment securities		525,790			(122	)		11.8
Other short-term investments		(80,799	)		(1,526	)		(20.1	)

Investments and other		444,991			(1,648	)		9.1

Total earning assets		1,366,351			(10,275	)		7.0
Other assets, net		(36,950	)					(1.6	)

Total assets	$	1,329,401						6.0

Interest-bearing liabilities:
Savings deposits	$	92,218		$	91			8.4	%
Interest-bearing demand deposits		679,319			776			31.6
Money market deposits		1,173,813			(1,634	)		19.1
Time deposits		(389,991	)		(9,397	)		(17.4	)

Total interest-bearing deposits		1,555,359			(10,164	)		13.4
Federal funds purchased and securities sold under agreements to repurchase		(501,531	)		(1,365	)		(42.6	)
Other short-term funding		261,888			(1,775	)		28.0
Long-term funding		(256,804	)		(15,548	)		(22.2	)

Total short and long-term funding		(496,447	)		(18,688	)		(15.2	)

Total interest-bearing liabilities		1,058,912			(28,852	)		7.1
Noninterest-bearing demand deposits		300,467						7.6
Other liabilities		26,698						15.5
Stockholders’ equity		(56,676	)					(1.9	)

Total liabilities and stockholders’ equity	$	1,329,401						6.0

Net interest income and rate spread				$	18,577

Net interest margin
Taxable equivalent adjustment				$	(974	)

Page 8


*Associated Banc-Corp*
*Financial Summary and Comparison*
					Dec 13 vs Sep 13									Dec 13 vs Dec 12
*Period End Loan Composition*	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
Commercial and industrial	$	4,822,680	$	4,703,056		2.5	%	$	4,752,838	$	4,651,143	$	4,502,021		7.1	%
Commercial real estate—owner occupied		1,114,715		1,147,352		(2.8	%)		1,174,866		1,199,513		1,219,747		(8.6	%)
Lease financing		55,483		51,727		7.3	%		55,084		57,908		64,196		(13.6	%)

Commercial and business lending		5,992,878		5,902,135		1.5	%		5,982,788		5,908,564		5,785,964		3.6	%
Commercial real estate—investor		2,939,456		2,847,152		3.2	%		3,010,992		2,900,167		2,906,759		1.1	%
Real estate construction		896,248		834,744		7.4	%		800,569		729,145		655,381		36.8	%

Commercial real estate lending		3,835,704		3,681,896		4.2	%		3,811,561		3,629,312		3,562,140		7.7	%

Total commercial		9,828,582		9,584,031		2.6	%		9,794,349		9,537,876		9,348,104		5.1	%
Home equity revolving lines of credit		874,840		875,703		(0.1	%)		888,162		904,187		936,065		(6.5	%)
Home equity loans 1st liens		742,120		794,912		(6.6	%)		863,779		940,017		1,013,757		(26.8	%)
Home equity loans junior liens		208,054		220,763		(5.8	%)		234,292		254,203		269,672		(22.8	%)

Home equity		1,825,014		1,891,378		(3.5	%)		1,986,233		2,098,407		2,219,494		(17.8	%)
Installment		407,074		420,268		(3.1	%)		434,029		447,445		466,727		(12.8	%)
Residential mortgage		3,835,591		3,690,177		3.9	%		3,531,988		3,467,834		3,376,697		13.6	%

Total consumer		6,067,679		6,001,823		1.1	%		5,952,250		6,013,686		6,062,918		0.1	%

Total loans	$	15,896,261	$	15,585,854		2.0	%	$	15,746,599	$	15,551,562	$	15,411,022		3.1	%


					Dec 13 vs Sep 13									Dec 13 vs Dec 12
*Period End Deposit and Customer Funding Composition*	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
Noninterest-bearing demand	$	4,626,312	$	4,453,663		3.9	%	$	4,259,776	$	4,453,109	$	4,759,556		(2.8	%)
Savings		1,159,512		1,195,944		(3.0	%)		1,211,567		1,197,134		1,109,861		4.5	%
Interest-bearing demand		2,889,705		2,735,529		5.6	%		2,802,277		2,966,934		2,554,479		13.1	%
Money market		6,906,442		8,199,281		(15.8	%)		7,040,317		6,836,678		6,518,075		6.0	%
Brokered CDs		50,450		56,024		(9.9	%)		59,206		49,919		26,270		92.0	%
Other time		1,634,746		1,697,467		(3.7	%)		1,759,293		1,917,520		1,971,624		(17.1	%)

Total deposits		17,267,167		18,337,908		(5.8	%)		17,132,436		17,421,294		16,939,865		1.9	%
Customer repo sweeps		419,247		515,555		(18.7	%)		489,700		617,038		564,038		(25.7	%)
Customer repo term		—		—		N/M			—		4,882		115,032		(100.0	%)

Total customer funding		419,247		515,555		(18.7	%)		489,700		621,920		679,070		(38.3	%)

Total deposits and customer funding	$	17,686,414	$	18,853,463		(6.2	%)	$	17,622,136	$	18,043,214	$	17,618,935		0.4	%

Network transaction deposits included above in interest-bearing demand and money market		1,936,403		2,222,810		(12.9	%)		2,135,306		2,054,714		1,684,745		14.9	%
Brokered CDs		50,450		56,024		(9.9	%)		59,206		49,919		26,270		92.0	%

Total network and brokered funding		1,986,853		2,278,834		(12.8	%)		2,194,512		2,104,633		1,711,015		16.1	%

Net customer deposits and funding (1)		15,699,561		16,574,629		(5.3	%)		15,427,624		15,938,581		15,907,920		(1.3	%)


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

					Dec 13 vs Sep 13									Dec 13 vs Dec 12
*Quarter Average Loan Composition*	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
Commercial and industrial	$	4,709,435	$	4,680,582		0.6	%	$	4,635,892	$	4,358,486	$	4,182,852		12.6	%
Commercial real estate—owner occupied		1,119,186		1,142,919		(2.1	%)		1,169,124		1,196,912		1,185,846		(5.6	%)
Lease financing		53,817		53,244		1.1	%		55,400		59,638		62,497		(13.9	%)

Commercial and business lending		5,882,438		5,876,745		0.1	%		5,860,416		5,615,036		5,431,195		8.3	%
Commercial real estate—investor		2,878,176		2,940,115		(2.1	%)		2,951,524		2,899,930		2,821,023		2.0	%
Real estate construction		858,138		828,780		3.5	%		770,584		692,579		630,081		36.2	%

Commercial real estate lending		3,736,314		3,768,895		(0.9	%)		3,722,108		3,592,509		3,451,104		8.3	%

Total commercial		9,618,752		9,645,640		(0.3	%)		9,582,524		9,207,545		8,882,299		8.3	%
Home equity revolving lines of credit		876,938		882,478		(0.6	%)		896,931		922,084		962,263		(8.9	%)
Home equity loans 1st liens		767,857		826,653		(7.1	%)		902,554		976,466		1,047,207		(26.7	%)
Home equity loans junior liens		214,557		227,021		(5.5	%)		242,796		262,193		280,051		(23.4	%)

Home equity		1,859,352		1,936,152		(4.0	%)		2,042,281		2,160,743		2,289,521		(18.8	%)
Installment		413,236		428,114		(3.5	%)		441,260		457,409		473,563		(12.7	%)
Residential mortgage		3,856,944		3,714,459		3.8	%		3,661,742		3,622,455		3,485,719		10.6	%

Total consumer		6,129,532		6,078,725		0.8	%		6,145,283		6,240,607		6,248,803		(1.9	%)

Total loans	$	15,748,284	$	15,724,365		0.2	%	$	15,727,807	$	15,448,152	$	15,131,102		4.1	%


					Dec 13 vs Sep 13									Dec 13 vs Dec 12
*Quarter Average Deposit Composition*	Dec 31, 2013		Sep 30, 2013		% Change			Jun 30, 2013		Mar 31, 2013		Dec 31, 2012		% Change
Noninterest-bearing demand	$	4,353,315	$	4,264,304		2.1	%	$	4,191,704	$	4,185,924	$	4,448,767		(2.1	%)
Savings		1,200,338		1,204,743		(0.4	%)		1,207,959		1,141,781		1,129,983		6.2	%
Interest-bearing demand		2,852,090		2,810,962		1.5	%		2,867,524		2,779,929		2,236,826		27.5	%
Money market		7,748,650		7,556,050		2.5	%		6,930,554		7,044,344		6,797,306		14.0	%
Time deposits		1,727,138		1,773,760		(2.6	%)		1,907,337		1,994,406		2,037,386		(15.2	%)

Total deposits	$	17,881,531	$	17,609,819		1.5	%	$	17,105,078	$	17,146,384	$	16,650,268		7.4	%

Page 9

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