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

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8-K - FORM 8-K - ASSOCIATED BANC-CORP	c65529e8vk.htm

Exhibit 99.1


		NEWS RELEASE
		Investor Contact:
		Janet L. Ford, Investor Relations Director 414-278-1890

		Media Contact:
		Autumn Latimore, Public Relations Director 414-278-1860

Associated reports Second Quarter Earnings of $0.15 per share

Net income to shareholders of $25.6 million, up 66% from the prior quarter

GREEN BAY, Wis. — July 21, 2011 — Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $25.6 million, or $0.15 per common share, for the quarter ended June 30, 2011. This compared to net income to common shareholders of $15.4 million, or $0.09 per common share, for the quarter ended March 31, 2011, and a net loss to common shareholders of $10.2 million, or $0.06 per common share, for the quarter ended June 30, 2010.

“We are pleased with our performance this quarter as we continue to execute on our strategic priorities,” said President and CEO Philip B. Flynn. “We are beginning to see results from the steps we are taking to drive loan growth and earnings expansion.”

HIGHLIGHTS

	•		Pre-tax income improved $13 million and net income to common shareholders improved $10 million from the prior quarter

	•		Total loans of $13.1 billion were up 3% from the prior quarter, with growth in all major segments of the portfolio

	•		C&I loans grew $230 million on a linked-quarter basis

	•		Commercial real estate and construction loans were up $50 million from the prior quarter

	•		Residential mortgages grew $156 million during the second quarter

	•		Total deposits and customer funding of $16.1 billion was up $184 million, with solid growth in interest-bearing checking, savings, and sweep account balances during the quarter

	•		Net interest margin for the second quarter was 3.29%

•

Impact of first quarter debt offering was partially offset by a 5 basis point improvement in interest-bearing deposit costs

•

Continued improvements in key credit metrics

	•		Nonaccrual loans of $468 million declined to the lowest level in six quarters

	•		Potential problem loans declined to $699 million, down 23% from $912 million for the first quarter

	•		Provision for loan losses of $16 million was down significantly from the prior quarter

	•		Net charge-offs of $45 million were down 17% from $53 million for the first quarter

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ASSOCIATED BANC-CORP REPORTS SECOND QUARTER 2011 RESULTS		PAGE 2

SECOND QUARTER 2011 FINANCIAL RESULTS

Loans

At June 30, 2011, the Company’s loan portfolio was $13.1 billion, up $434 million, or 3%, from $12.7 billion at March 31, 2011, and up $488 million, or 4%, from $12.6 billion a year ago. Commercial loans grew $277 million on a linked-quarter basis, with the most significant increase in the commercial and industrial (C&I) segment of the loan portfolio. C&I loans grew by $230 million, or 8%, from the prior quarter. Commercial real estate and construction loans grew by $50 million, or 1%, and the residential mortgage segment was up $156 million, or 6%, from the first quarter.

Deposits and Customer Funding

Total deposits and customer funding of $16.1 billion at the end of the second quarter was up 1% from $16.0 billion at the end of the first quarter. Total deposits were $14.1 billion at June 30, 2011, up slightly from $14.0 billion at March 31, 2011. The net deposit growth was primarily driven by a $176 million, or 10%, increase in interest-bearing demand deposits and a $34 million, or 4%, increase in savings deposits during the quarter. The Company continued to reduce noncustomer network and brokered transactions deposits which, in aggregate, declined by 10% from the prior quarter.

Net Interest Income and Net Interest Margin

Second quarter net interest income was $154 million, up modestly from the first quarter despite the low interest rate environment and the additional interest expense related to the $300 million debt offering issued in late March. Proceeds from the debt offering partially funded the Company’s repurchase of $262.5 million of preferred shares issued under the TARP Capital Purchase Program (CPP). The net interest margin was 3.29%, down 3 basis points from the prior quarter, also reflecting the impact of the debt offering.

Noninterest Income and Expense

Noninterest income for the quarter ended June 30, 2011 was $65 million, down $7 million, or 10%, from $72 million for the first quarter of 2011. The linked-quarter decline in noninterest income was primarily driven by a $6 million reduction in the value of mortgage servicing rights, primarily due to a decline in mortgage rates during the quarter, and a $4 million valuation expense related to credit exposures on customer swaps.

Core fee-based revenue of $61 million for the quarter was relatively flat compared to the first quarter of 2011. The challenging economic environment, regulatory changes, and changes in checking products and customer behavior continued to have an impact on fee-based revenue during the second quarter.

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ASSOCIATED BANC-CORP REPORTS SECOND QUARTER 2011 RESULTS		PAGE 3

Total noninterest expense for the quarter ended June 30, 2011 was $159 million, down $5 million, or 3%, from the first quarter. Personnel expense of $89 million for the second quarter remained relatively flat compared to the first quarter. Foreclosure/OREO costs were up $3 million from the prior quarter, offset by decreases in other expense categories, including a $3 million seasonal decline in occupancy expense and lower expenses related to unfunded commitments and litigation reserves of $3 million and $5 million, respectively.

On April 6, 2011, the Company used a portion of the net proceeds from the March debt offering to repurchase half of the $525 million the Company received under the CPP. The Company recorded a noncash charge of $5 million during the quarter for the partial repurchase of CPP preferred shares, which represented the difference between the unamortized cost of the repurchased preferred stock and the repurchase price. The Company will incur another $4 million noncash charge when it repurchases the balance of the CPP preferred shares.

Key Credit Metrics

The Company reported another quarter of improving credit metrics with nonaccrual loans of $468 million, down 4% from $488 million at March 31, 2011, and down 52% from $976 million at June 30, 2010. Total loans 30-89 days past due were $113 million, up $7 million, or 7%, from $106 million for the previous quarter, and down 24% from $149 million at June 30, 2010. Potential problem loans declined to $699 million, down 23% from $912 million for the first quarter, and down 45% from $1.3 billion a year ago.

Net charge-offs were $45 million for the second quarter, down 17% from $53 million for the first quarter of 2011, and down 58% from $105 million for the second quarter of 2010. The Company’s allowance for loan losses was $426 million, down 6% from $454 million for the quarter ended March 31, 2011, and down 25% from $568 million at June 30, 2010.

For the second quarter, the provision for loan losses was $16 million, down significantly from $31 million for the first quarter of 2011, and $98 million for the second quarter of 2010. The allowance for loan losses coverage to nonaccrual loans was 91% at June 30, 2011 compared to 93% at the end of the first quarter and 58% a year ago.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common ratio of 12.61% at June 30, 2011 compared to 12.65% at the end of the first quarter and 12.00% a year ago. The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks, the highest regulatory capital level and also exceed the guidelines recently published by the Basel Committee and endorsed by U.S. regulatory agencies.

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ASSOCIATED BANC-CORP REPORTS SECOND QUARTER 2011 RESULTS		PAGE 4

“Despite remaining cautious about the near term macro economic outlook, we believe that the investments we are making will produce a solid return for our shareholders,” Flynn continued. “As previously mentioned, we expect to repurchase the remaining CPP preferred shares during the third or fourth quarter of this year.”

SECOND QUARTER 2011 EARNINGS

RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 21, 2011. Interested parties can listen to the call live on the Internet through the investor relations section of the company’s website, http://investor.associatedbank.com/ or by dialing 877-348-9354. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 253-237-1160. Participants should ask the operator for the Associated Banc-Corp second quarter 2011 earnings call, or conference ID number 75804403.

An audio archive of the webcast will be available on the company’s website for one month following the call. A replay of the call will be available starting at 7:00 p.m. CT on July 21, 2011 through 11:00 p.m. CT on August 21, 2011 by dialing 800-642-1687 and entering the conference ID number 75804403. The replay number for international callers is 706-645-9291.

ABOUT ASSOCIATED BANC-CORP

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

FORWARD LOOKING STATEMENTS

Statements made in this document that are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “will,” “intend,” or similar expressions. Outcomes related to such statements are subject to numerous risk factors and uncertainties including those listed in the Company’s most recent Annual Report filed on Form 10-K as updated by the Company’s most recent Form 10-Q.

# # #

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp


	June 30,			March 31,			Seql Qtr			December 31,			September 30,			June 30,			Comp Qtr
(in thousands)	2011			2011			$ Change			2010			2010			2010			$ Change

*Assets*
Cash and due from banks	$	314,682		$	299,040		$	15,642		$	319,487		$	316,914		$	324,952		$	(10,270	)
Interest-bearing deposits in other financial institutions		777,675			498,094			279,581			546,125			1,717,853			2,210,946			(1,433,271	)
Federal funds sold and securities purchased under agreements to resell		2,400			2,015			385			2,550			503,950			13,515			(11,115	)
Securities available for sale, at fair value		5,742,034			5,883,541			(141,507	)		6,101,341			5,291,336			5,322,177			419,857
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		191,075			191,017			58			190,968			190,918			190,870			205
Loans held for sale		84,323			85,493			(1,170	)		144,808			274,666			321,060			(236,737	)
Loans		13,089,589			12,655,322			434,267			12,616,735			12,372,393			12,601,916			487,673
Allowance for loan losses		(425,961	)		(454,461	)		28,500			(476,813	)		(522,018	)		(567,912	)		141,951

Loans, net		12,663,628			12,200,861			462,767			12,139,922			11,850,375			12,034,004			629,624
Premises and equipment, net		192,506			186,329			6,177			190,533			181,236			181,231			11,275
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		74,872			85,200			(10,328	)		88,044			84,824			92,176			(17,304	)
Other assets		1,076,112			1,112,807			(36,695	)		1,132,650			1,184,046			1,139,960			(63,848	)

*Total assets*	$	22,048,475		$	21,473,565		$	574,910		$	21,785,596		$	22,525,286		$	22,760,059			(711,584	)


*Liabilities and Stockholders’ Equity*
Noninterest-bearing deposits	$	3,218,722		$	3,285,604		$	(66,882	)	$	3,684,965		$	3,054,121		$	2,932,599			286,123
Interest-bearing deposits, excl Brokered CDs		10,530,658			10,413,994			116,664			11,097,788			13,308,530			13,465,974			(2,935,316	)
Brokered CDs		316,670			324,045			(7,375	)		442,640			442,209			571,626			(254,956	)

Total deposits		14,066,050			14,023,643			42,407			15,225,393			16,804,860			16,970,199			(2,904,149	)
Short-term funding		3,255,670			2,547,805			707,865			1,747,382			539,263			513,406			2,742,264
Long-term funding		1,484,174			1,484,177			(3	)		1,413,605			1,713,671			1,843,691			(359,517	)
Accrued expenses and other liabilities		243,433			223,226			20,207			240,425			266,643			246,636			(3,203	)

Total liabilities		19,049,327			18,278,851			770,476			18,626,805			19,324,437			19,573,932			(524,605	)
Stockholders’ Equity
Preferred equity		258,051			515,238			(257,187	)		514,388			513,550			512,724			(254,673	)
Common stock		1,745			1,744			1			1,739			1,738			1,737			8
Surplus		1,581,594			1,576,903			4,691			1,573,372			1,569,963			1,567,315			14,279
Retained earnings		1,079,076			1,055,344			23,732			1,041,666			1,036,800			1,032,065			47,011
Accumulated other comprehensive income		79,345			45,731			33,614			27,626			78,798			73,173			6,172
Treasury stock		(663	)		(246	)		(417	)		—			—			(887	)		224

Total stockholders’ equity		2,999,148			3,194,714			(195,566	)		3,158,791			3,200,849			3,186,127			(186,979	)

*Total liabilities and stockholders’ equity*	$	22,048,475		$	21,473,565		$	574,910		$	21,785,596		$	22,525,286		$	22,760,059		$	(711,584	)

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp


	For The Three Months Ended												For The Six Months Ended,
	June 30,						Quarter						June 30,						Year-to-Date
(in thousands, except per share amounts)	2011			2010			$ Change			% Change			2011			2010			$ Change			% Change

*Interest Income*
Interest and fees on loans	$	144,358		$	153,815		$	(9,457	)		(6.1	%)	$	287,129		$	313,106		$	(25,977	)		(8.3	%)
Interest and dividends on investment securities:
Taxable		35,351			40,292			(4,941	)		(12.3	%)		70,003			86,460			(16,457	)		(19.0	%)
Tax-exempt		7,504			8,558			(1,054	)		(12.3	%)		15,217			17,266			(2,049	)		(11.9	%)
Other interest and dividends		1,438			2,213			(775	)		(35.0	%)		2,896			3,986			(1,090	)		(27.3	%)

Total interest income		188,651			204,878			(16,227	)		(7.9	%)		375,245			420,818			(45,573	)		(10.8	%)
*Interest Expense*
Interest on deposits		16,901			28,360			(11,459	)		(40.4	%)		35,150			57,105			(21,955	)		(38.4	%)
Interest on short-term funding		3,637			1,820			1,817			99.8	%		7,216			3,846			3,370			87.6	%
Interest on long-term funding		13,990			14,905			(915	)		(6.1	%)		25,033			30,852			(5,819	)		(18.9	%)

Total interest expense		34,528			45,085			(10,557	)		(23.4	%)		67,399			91,803			(24,404	)		(26.6	%)

*Net Interest Income*		154,123			159,793			(5,670	)		(3.5	%)		307,846			329,015			(21,169	)		(6.4	%)
Provision for loan losses		16,000			97,665			(81,665	)		(83.6	%)		47,000			263,010			(216,010	)		(82.1	%)

Net interest income after provision for loan losses		138,123			62,128			75,995			122.3	%		260,846			66,005			194,841			295.2	%
*Noninterest Income*
Trust service fees		10,012			9,517			495			5.2	%		19,843			18,873			970			5.1	%
Service charges on deposit accounts		19,112			26,446			(7,334	)		(27.7	%)		38,176			52,505			(14,329	)		(27.3	%)
Card-based and other nondeposit fees		15,747			14,739			1,008			6.8	%		31,345			28,551			2,794			9.8	%
Retail commissions		16,475			15,722			753			4.8	%		32,856			31,539			1,317			4.2	%

Total core fee-based revenue		61,346			66,424			(5,078	)		(7.6	%)		122,220			131,468			(9,248	)		(7.0	%)
Mortgage banking, net		(3,320	)		5,493			(8,813	)		(160.4	%)		(1,475	)		10,900			(12,375	)		(113.5	%)
Capital market fees, net		(890	)		(136	)		(754	)		N/M			1,488			(6	)		1,494			N/M
Bank owned life insurance income		3,500			4,240			(740	)		(17.5	%)		7,086			7,496			(410	)		(5.5	%)
Asset sale gains (losses), net		(209	)		1,477			(1,686	)		N/M			(2,195	)		(164	)		(2,031	)		N/M
Investment securities gains (losses), net		(36	)		(146	)		110			(75.3	%)		(58	)		23,435			(23,493	)		(100.2	%)
Other		4,364			3,539			825			23.3	%		9,871			5,800			4,071			70.2	%

Total noninterest income		64,755			80,891			(16,136	)		(19.9	%)		136,937			178,929			(41,992	)		(23.5	%)
*Noninterest Expense*
Personnel expense		89,203			79,342			9,861			12.4	%		178,133			158,697			19,436			12.2	%
Occupancy		12,663			11,706			957			8.2	%		27,938			24,881			3,057			12.3	%
Equipment		4,969			4,450			519			11.7	%		9,736			8,835			901			10.2	%
Data processing		7,974			7,866			108			1.4	%		15,508			15,165			343			2.3	%
Business development and advertising		5,652			4,773			879			18.4	%		10,595			9,218			1,377			14.9	%
Other intangible amortization		1,178			1,254			(76	)		(6.1	%)		2,356			2,507			(151	)		(6.0	%)
Legal and professional fees		4,783			5,517			(734	)		(13.3	%)		9,265			8,312			953			11.5	%
Losses other than loans		(1,925	)		2,840			(4,765	)		(167.8	%)		4,372			4,819			(447	)		(9.3	%)
Foreclosure/OREO expense		9,527			8,906			621			7.0	%		15,588			16,635			(1,047	)		(6.3	%)
FDIC expense		7,198			12,027			(4,829	)		(40.2	%)		15,442			23,856			(8,414	)		(35.3	%)
Other		17,664			16,357			1,307			8.0	%		34,129			33,972			157			0.5	%

Total noninterest expense		158,886			155,038			3,848			2.5	%		323,062			306,897			16,165			5.3	%

*Income (loss) before income taxes*		43,992			(12,019	)		56,011			N/M			74,721			(61,963	)		136,684			N/M
Income tax expense (benefit)		9,610			(9,240	)		18,850			N/M			17,486			(32,795	)		50,281			N/M

*Net income (loss)*		34,382			(2,779	)		37,161			N/M			57,235			(29,168	)	$	86,403			N/M
Preferred stock dividends and discount		8,812			7,377			1,435			19.5	%		16,225			14,742			1,483			10.1	%

*Net income (loss) available to common equity*	$	25,570		$	(10,156	)	$	35,726			N/M		$	41,010		$	(43,910	)	$	84,920			N/M


Earnings (Loss) Per Common Share:
Basic	$	0.15		$	(0.06	)	$	0.21			N/M		$	0.24		$	(0.26	)	$	0.50			N/M
Diluted	$	0.15		$	(0.06	)	$	0.21			N/M		$	0.24		$	(0.26	)	$	0.50			N/M

Average Common Shares Outstanding:
Basic		173,323			172,921			402			0.2	%		173,268			169,401			3,867			2.3	%
Diluted		173,327			172,921			406			0.2	%		173,272			169,401			3,871			2.3	%


		N/M = Not meaningful.

Consolidated Statements of Income (Unaudited) — Quarterly Trend
Associated Banc-Corp


							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	2Q11			1Q11			$ Change			% Change			4Q10			3Q10			2Q10			$ Change			% Change

*Interest Income*
Interest and fees on loans	$	144,358		$	142,771		$	1,587			1.1	%	$	146,444		$	148,937		$	153,815		$	(9,457	)		(6.1	%)
Interest and dividends on investment securities:
Taxable		35,351			34,652			699			2.0	%		32,420			36,151			40,292			(4,941	)		(12.3	%)
Tax-exempt		7,504			7,713			(209	)		(2.7	%)		8,150			8,499			8,558			(1,054	)		(12.3	%)
Other interest and dividends		1,438			1,458			(20	)		(1.4	%)		2,078			2,629			2,213			(775	)		(35.0	%)

Total interest income		188,651			186,594			2,057			1.1	%		189,092			196,216			204,878			(16,227	)		(7.9	%)
*Interest Expense*
Interest on deposits		16,901			18,249			(1,348	)		(7.4	%)		23,039			25,879			28,360			(11,459	)		(40.4	%)
Interest on short-term funding		3,637			3,579			58			1.6	%		2,288			1,849			1,820			1,817			99.8	%
Interest on long-term funding		13,990			11,043			2,947			26.7	%		12,905			14,584			14,905			(915	)		(6.1	%)

Total interest expense		34,528			32,871			1,657			5.0	%		38,232			42,312			45,085			(10,557	)		(23.4	%)

*Net Interest Income*		154,123			153,723			400			0.3	%		150,860			153,904			159,793			(5,670	)		(3.5	%)
Provision for loan losses		16,000			31,000			(15,000	)		(48.4	%)		63,000			64,000			97,665			(81,665	)		(83.6	%)

Net interest income after provision for
loan losses		138,123			122,723			15,400			12.5	%		87,860			89,904			62,128			75,995			122.3	%
*Noninterest Income*
Trust service fees		10,012			9,831			181			1.8	%		9,518			9,462			9,517			495			5.2	%
Service charges on deposit accounts		19,112			19,064			48			0.3	%		20,390			23,845			26,446			(7,334	)		(27.7	%)
Card-based and other nondeposit fees		15,747			15,598			149			1.0	%		15,842			14,906			14,739			1,008			6.8	%
Retail commissions		16,475			16,381			94			0.6	%		14,441			15,276			15,722			753			4.8	%

Total core fee-based revenue		61,346			60,874			472			0.8	%		60,191			63,489			66,424			(5,078	)		(7.6	%)
Mortgage banking, net		(3,320	)		1,845			(5,165	)		N/M			13,229			9,007			5,493			(8,813	)		(160.4	%)
Capital market fees, net		(890	)		2,378			(3,268	)		(137.4	%)		5,187			891			(136	)		(754	)		N/M
Bank owned life insurance income		3,500			3,586			(86	)		(2.4	%)		4,509			3,756			4,240			(740	)		(17.5	%)
Asset sale gains (losses), net		(209	)		(1,986	)		1,777			(89.5	%)		514			(2,354	)		1,477			(1,686	)		N/M
Investment securities gains (losses), net		(36	)		(22	)		(14	)		63.6	%		(1,883	)		3,365			(146	)		110			(75.3	%)
Other		4,364			5,507			(1,143	)		(20.8	%)		2,950			3,743			3,539			825			23.3	%

Total noninterest income		64,755			72,182			(7,427	)		(10.3	%)		84,697			81,897			80,891			(16,136	)		(19.9	%)
*Noninterest Expense*
Personnel expense		89,203			88,930			273			0.3	%		83,912			80,640			79,342			9,861			12.4	%
Occupancy		12,663			15,275			(2,612	)		(17.1	%)		12,899			12,157			11,706			957			8.2	%
Equipment		4,969			4,767			202			4.2	%		4,899			4,637			4,450			519			11.7	%
Data processing		7,974			7,534			440			5.8	%		7,047			7,502			7,866			108			1.4	%
Business development and advertising		5,652			4,943			709			14.3	%		4,870			4,297			4,773			879			18.4	%
Other intangible amortization		1,178			1,178			—			0.0	%		1,206			1,206			1,254			(76	)		(6.1	%)
Legal and professional fees		4,783			4,482			301			6.7	%		5,353			6,774			5,517			(734	)		(13.3	%)
Losses other than loans		(1,925	)		6,297			(8,222	)		(130.6	%)		7,470			2,504			2,840			(4,765	)		(167.8	%)
Foreclosure/OREO expense		9,527			6,061			3,466			57.2	%		9,860			7,349			8,906			621			7.0	%
FDIC expense		7,198			8,244			(1,046	)		(12.7	%)		11,095			11,426			12,027			(4,829	)		(40.2	%)
Other		17,664			16,465			1,199			7.3	%		18,232			18,088			16,357			1,307			8.0	%

Total noninterest expense		158,886			164,176			(5,290	)		(3.2	%)		166,843			156,580			155,038			3,848			2.5	%

*Income (loss) before income taxes*		43,992			30,729			13,263			43.2	%		5,714			15,221			(12,019	)		56,011			N/M
Income tax expense (benefit)		9,610			7,876			1,734			22.0	%		(8,294	)		917			(9,240	)		18,850			N/M

*Net income (loss)*		34,382			22,853			11,529			50.4	%		14,008			14,304			(2,779	)		37,161			N/M
Preferred stock dividends and discount		8,812			7,413			1,399			18.9	%		7,400			7,389			7,377			1,435			19.5	%

*Net income (loss) available to common equity*	$	25,570		$	15,440		$	10,130			65.6	%	$	6,608		$	6,915		$	(10,156	)	$	35,726			N/M


Earnings (Loss) Per Common Share:
Basic	$	0.15		$	0.09		$	0.06			66.7	%	$	0.04		$	0.04		$	(0.06	)	$	0.21			N/M
Diluted	$	0.15		$	0.09		$	0.06			66.7	%	$	0.04		$	0.04		$	(0.06	)	$	0.21			N/M

Average Common Shares Outstanding:
Basic		173,323			173,213			110			0.1	%		173,068			172,989			172,921			402			0.2	%
Diluted		173,327			173,217			110			0.1	%		173,072			172,990			172,921			406			0.2	%

N/m = Not meaningful.

Selected Quarterly Information
Associated Banc-Corp


(in thousands, except per share and full time equivalent employee data)	YTD 2011			YTD 2010			2nd Qtr 2011			1st Qtr 2011			4th Qtr 2010			3rd Qtr 2010			2nd Qtr 2010

*Summary of Operations*
Net interest income	$	307,846		$	329,015		$	154,123		$	153,723		$	150,860		$	153,904		$	159,793
Provision for loan losses		47,000			263,010			16,000			31,000			63,000			64,000			97,665
Asset sale gains (losses), net		(2,195	)		(164	)		(209	)		(1,986	)		514			(2,354	)		1,477
Investment securities gains (losses), net		(58	)		23,435			(36	)		(22	)		(1,883	)		3,365			(146	)
Noninterest income (excluding securities & asset gains)		139,190			155,658			65,000			74,190			86,066			80,886			79,560
Noninterest expense		323,062			306,897			158,886			164,176			166,843			156,580			155,038
Income (loss) before income taxes		74,721			(61,963	)		43,992			30,729			5,714			15,221			(12,019	)
Income tax expense (benefit)		17,486			(32,795	)		9,610			7,876			(8,294	)		917			(9,240	)
Net income (loss)		57,235			(29,168	)		34,382			22,853			14,008			14,304			(2,779	)
Net income (loss) available to common equity		41,010			(43,910	)		25,570			15,440			6,608			6,915			(10,156	)
Taxable equivalent adjustment		10,772			12,000			5,332			5,440			5,721			5,914			5,966

*Per Common Share Data*
Net income (loss):
Basic	$	0.24		$	(0.26	)	$	0.15		$	0.09		$	0.04		$	0.04		$	(0.06	)
Diluted		0.24			(0.26	)		0.15			0.09			0.04			0.04			(0.06	)
Dividends		0.02			0.02			0.01			0.01			0.01			0.01			0.01
Market Value:
High	$	15.36		$	16.10		$	15.02		$	15.36		$	15.49		$	13.90		$	16.10
Low		13.06			11.48			13.06			13.83			12.57			11.96			12.26
Close		13.90			12.26			13.90			14.85			15.15			13.19			12.26
Book value		15.81			15.46			15.81			15.46			15.28			15.53			15.46
Tangible book value		10.33			9.93			10.33			9.97			9.77			10.02			9.93

*Performance Ratios (annualized)*
Earning assets yield		4.00	%		4.17	%		4.00	%		4.01	%		3.89	%		3.90	%		4.10	%
Interest-bearing liabilities rate		0.90			1.11			0.91			0.89			0.98			1.03			1.10
Net interest margin		3.30			3.29			3.29			3.32			3.13			3.08			3.22
Return on average assets		0.54			(0.26	)		0.64			0.43			0.25			0.25			(0.05	)
Return on average equity		3.75			(1.86	)		4.63			2.92			1.74			1.77			(0.35	)
Return on average tangible common equity (1)		4.78			(5.22	)		5.85			3.67			1.52			1.58			(2.37	)
Efficiency ratio (2)		70.57			61.79			70.79			70.36			68.76			65.05			63.20
Effective tax rate (benefit)		23.40			(52.93	)		21.84			25.63			(145.13	)		6.03			(76.88	)
Dividend payout ratio (3)		8.33			N/M			6.67			11.11			25.00			25.02			N/M


*Average Balances*
Assets	$	21,432,029		$	22,873,703		$	21,526,155		$	21,336,858		$	22,034,041		$	22,727,208		$	22,598,695
Earning assets		19,364,948			20,835,705			19,431,292			19,297,866			19,950,784			20,660,498			20,598,637
Interest-bearing liabilities		15,085,468			16,688,248			15,261,514			14,907,465			15,476,002			16,376,904			16,408,718
Loans (4)		12,840,289			13,659,385			13,004,904			12,673,844			12,587,702			12,855,791			13,396,710
Deposits		14,148,618			17,099,816			14,052,689			14,245,614			16,452,473			17,138,105			17,056,193
Short and long-term funding		4,160,335			2,588,696			4,434,500			3,883,122			2,311,016			2,326,469			2,343,119
Common stockholders’ equity		2,681,562			2,654,000			2,704,909			2,657,956			2,681,813			2,693,735			2,674,097
Stockholders’ equity		3,074,197			3,165,798			2,976,840			3,172,636			3,195,657			3,206,742			3,186,295
Common stockholders’ equity / assets		12.51	%		11.60	%		12.57	%		12.46	%		12.17	%		11.85	%		11.83	%
Stockholders’ equity / assets		14.34	%		13.84	%		13.83	%		14.87	%		14.50	%		14.11	%		14.10	%


*At Period End*
Assets							$	22,048,475		$	21,473,565		$	21,785,596		$	22,525,286		$	22,760,059
Loans								13,089,589			12,655,322			12,616,735			12,372,393			12,601,916
Allowance for loan losses								425,961			454,461			476,813			522,018			567,912
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								53,093			62,243			63,909			59,483			65,629
Other intangible assets								21,779			22,957			24,135			25,341			26,547
Deposits								14,066,050			14,023,643			15,225,393			16,804,860			16,970,199
Short and long-term funding								4,739,844			4,031,982			3,160,987			2,252,934			2,357,097
Stockholders’ equity								2,999,148			3,194,714			3,158,791			3,200,849			3,186,127
Stockholders’ equity / assets								13.60	%		14.88	%		14.50	%		14.21	%		14.00	%
Tangible common equity / tangible assets (5)								8.49	%		8.42	%		8.12	%		8.03	%		7.88	%
Tangible equity/tangible assets (6)								9.71	%		10.93	%		10.59	%		10.41	%		10.23	%
Tier 1 common equity / risk-weighted assets (7)								12.61	%		12.65	%		12.26	%		12.31	%		12.00	%
Tier 1 leverage ratio								10.46	%		11.65	%		11.19	%		10.78	%		10.80	%
Tier 1 risk-based capital ratio								16.03	%		18.08	%		17.58	%		17.68	%		17.25	%
Total risk-based capital ratio								17.50	%		19.56	%		19.05	%		19.16	%		19.02	%
Shares outstanding, end of period								173,374			173,274			173,112			173,019			172,955


*Selected trend information*
Average full time equivalent employees								4,977			4,929			4,865			4,827			4,766
Trust assets under management, at market value							$	5,700,000		$	5,900,000		$	5,700,000		$	5,400,000		$	5,100,000
Mortgage loans originated for sale during period								250,880			290,013			629,978			727,868			501,965
Mortgage portfolio serviced for others								7,367,000			7,476,000			7,453,000			7,860,000			7,822,000
Mortgage servicing rights, net / Portfolio serviced for others								0.72	%		0.83	%		0.86	%		0.76	%		0.84	%


		N/M = Not meaningful.

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

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

		This is a non-GAAP financial measure.

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

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

(5)		Tangible common equity to tangible assets = Common stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets.

		This is a non-GAAP financial measure.

(6)		Tangible equity to tangible assets = Stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets.

		This is a non-GAAP financial measure.

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

Selected Asset Quality Information
Associated Banc-Corp


							Jun11 vs Mar11												Jun11 vs Jun10
(in thousands)	Jun 30, 2011			Mar 31, 2011			%Change			Dec 31, 2010			Sep 30, 2010			Jun 30, 2010			%Change
*Allowance for Loan Losses*
Beginning balance	$	454,461		$	476,813			(4.7	%)	$	522,018		$	567,912		$	575,573			(21.0	%)
Provision for loan losses		16,000			31,000			(48.4	%)		63,000			64,000			97,665			(83.6	%)
Charge offs		(52,365	)		(65,156	)		(19.6	%)		(118,368	)		(122,327	)		(113,170	)		(53.7	%)
Recoveries		7,865			11,804			(33.4	%)		10,163			12,433			7,844			0.3	%

Net charge offs		(44,500	)		(53,352	)		(16.6	%)		(108,205	)		(109,894	)		(105,326	)		(57.8	%)

Ending balance	$	425,961		$	454,461			(6.3	%)	$	476,813		$	522,018		$	567,912			(25.0	%)


Reserve for losses on unfunded commitments	$	14,900		$	17,800			(16.3	%)	$	17,374		$	16,274		$	14,616			1.9	%


					Jun11 vs Mar11									Jun11 vs Jun10
*Net Charge Offs*	Jun 30, 2011		Mar 31, 2011		%Change			Dec 31, 2010		Sep 30, 2010		Jun 30, 2010		%Change
Commercial and industrial	$	14,026	$	4,314		225.1	%	$	27,041	$	4,274	$	5,557		152.4	%
Commercial real estate		9,377		7,873		19.1	%		20,103		28,517		37,004		(74.7	%)
Real estate — construction		6,031		11,936		(49.5	%)		31,879		60,488		46,135		(86.9	%)
Lease financing		60		28		114.3	%		9,159		826		297		(79.8	%)

Total commercial		29,494		24,151		22.1	%		88,182		94,105		88,993		(66.9	%)
Home equity		8,251		14,322		(42.4	%)		14,541		10,875		11,213		(26.4	%)
Installment⁽¹⁾		664		12,670		(94.8	%)		2,369		1,640		1,887		(64.8	%)

Total retail		8,915		26,992		(67.0	%)		16,910		12,515		13,100		(31.9	%)
Residential mortgage		6,091		2,209		175.7	%		3,113		3,274		3,233		88.4	%

Total net charge offs	$	44,500	$	53,352		(16.6	%)	$	108,205	$	109,894	$	105,326		(57.8	%)


*Net Charge Offs to Average*
Loans (in basis points) *	Jun 30, 2011		Mar 31, 2011					Dec 31, 2010		Sep 30, 2010		Jun 30, 2010
Commercial and industrial		180		60					364		57		73
Commercial real estate		111		94					231		319		398
Real estate — construction		454		888					1,820		2,598		1,582
Lease financing		44		20					5,051		416		141

Total commercial		166		142					488		498		444
Home equity		127		227					231		175		183
Installment		42		759					131		74		83

Total retail		111		338					209		148		156
Residential mortgage		92		35					56		65		65

Total net charge offs		137		171					341		339		315


							Jun11 vs Mar11												Jun11 vs Jun10
*Credit Quality*	Jun 30, 2011			Mar 31, 2011			%Change			Dec 31, 2010			Sep 30, 2010			Jun 30, 2010			%Change
Nonaccrual loans	$	467,611		$	488,321			(4.2	%)	$	574,356		$	727,877		$	975,641			(52.1	%)
Other real estate owned (OREO)		45,712			49,019			(6.7	%)		44,330			53,101			51,223			(10.8	%)

Total nonperforming assets	$	513,323		$	537,340			(4.5	%)	$	618,686		$	780,978		$	1,026,864			(50.0	%)


Loans 90 or more days past due and still accruing		12,123			9,380			29.2	%		3,418			26,593			3,207			278.0	%
Restructured loans (accruing)		100,343			88,193			13.8	%		79,935			62,778			40,865			145.5	%

Allowance for loan losses / loans		3.25	%		3.59	%					3.78	%		4.22	%		4.51	%
Allowance for loan losses / nonaccrual loans		91.09			93.07						83.02			71.72			58.21
Nonaccrual loans / total loans		3.57			3.86						4.55			5.88			7.74
Nonperforming assets / total loans plus OREO		3.91			4.23						4.89			6.29			8.12
Nonperforming assets / total assets		2.33			2.50						2.84			3.47			4.51
Net charge offs / average loans (annualized)		1.37			1.71						3.41			3.39			3.15
Year-to-date net charge offs / average loans		1.54			1.71						3.69			3.78			3.97

Nonaccrual loans by type:
Commercial and industrial	$	71,183		$	76,780			(7.3	%)	$	99,845		$	156,697		$	184,173			(61.3	%)
Commercial real estate		193,495			186,547			3.7	%		223,927			275,586			351,883			(45.0	%)
Real estate — construction		72,782			84,903			(14.3	%)		94,929			132,425			279,710			(74.0	%)
Lease financing		12,898			15,270			(15.5	%)		17,080			26,922			27,953			(53.9	%)

Total commercial		350,358			363,500			(3.6	%)		435,781			591,630			843,719			(58.5	%)
Home equity		46,777			49,618			(5.7	%)		51,712			50,901			41,749			12.0	%
Installment		3,724			4,949			(24.8	%)		10,544			8,757			6,032			(38.3	%)

Total retail		50,501			54,567			(7.5	%)		62,256			59,658			47,781			5.7	%
Residential mortgage		66,752			70,254			(5.0	%)		76,319			76,589			84,141			(20.7	%)

Total nonaccrual loans	$	467,611		$	488,321			(4.2	%)	$	574,356		$	727,877		$	975,641			(52.1	%)


*		Annualized.

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

Selected Asset Quality Information (continued)
Associated Banc-Corp


					Jun11 vs Mar11									Jun11 vs Jun10
(in thousands)	Jun 30, 2011		Mar 31, 2011		%Change			Dec 31, 2010		Sep 30, 2010		Jun 30, 2010		%Change
*Restructured loans (accruing)*
Commercial and industrial	$	22,760	$	16,047		41.8	%	$	9,980	$	620	$	635		N/M
Commercial real estate		36,191		34,166		5.9	%		15,612		23,387		7,820		N/M
Real estate — construction		10,706		7,859		36.2	%		22,532		7,076		4,835		N/M
Lease financing		—		—		0.0	%		—		—		—		N/M

Total commercial		69,657		58,072		19.9	%		48,124		31,083		13,290		N/M
Home equity		11,453		11,630		(1.5	%)		11,741		10,269		3,601		218.1	%
Installment		1,017		1,149		(11.5	%)		692		793		560		81.6	%

Total retail		12,470		12,779		(2.4	%)		12,433		11,062		4,161		199.7	%
Residential mortgage		18,216		17,342		5.0	%		19,378		20,633		23,414		(22.2	%)

Total restructured loans (accruing)	$	100,343	$	88,193		13.8	%	$	79,935	$	62,778	$	40,865		145.5	%


Restructured loans in nonaccrual loans (not included above)	$	71,084	$	49,352		44.0	%	$	35,939	$	32,657	$	48,215		47.4	%


					Jun11 vs Mar11									Jun11 vs Jun10
*Loans Past Due 30-89 Days*	Jun 30, 2011		Mar 31, 2011		%Change			Dec 31, 2010		Sep 30, 2010		Jun 30, 2010		%Change
Commercial and industrial	$	7,581	$	36,205		(79.1	%)	$	33,013	$	14,505	$	40,415		(81.2	%)
Commercial real estate		61,240		40,537		51.1	%		46,486		56,710		50,721		20.7	%
Real estate — construction		13,217		3,410		287.6	%		8,016		12,225		23,368		(43.4	%)
Lease financing		79		135		(41.5	%)		132		168		628		(87.4	%)

Total commercial		82,117		80,287		2.3	%		87,647		83,608		115,132		(28.7	%)
Home equity		14,818		14,808		0.1	%		13,886		20,044		15,869		(6.6	%)
Installment		3,851		2,714		41.9	%		9,624		10,536		6,567		(41.4	%)

Total retail		18,669		17,522		6.5	%		23,510		30,580		22,436		(16.8	%)
Residential mortgage		12,573		7,940		58.4	%		8,722		10,065		11,110		13.2	%

Total loans past due 30-89 days	$	113,359	$	105,749		7.2	%	$	119,879	$	124,253	$	148,678		(23.8	%)


					Jun11 vs Mar11									Jun11 vs Jun10
*Potential Problem Loans*	Jun 30, 2011		Mar 31, 2011		%Change			Dec 31, 2010		Sep 30, 2010		Jun 30, 2010		%Change
Commercial and industrial	$	229,407	$	348,949		(34.3	%)	$	354,284	$	373,955	$	482,686		(52.5	%)
Commercial real estate		382,056		465,376		(17.9	%)		492,778		553,126		553,316		(31.0	%)
Real estate — construction		63,186		70,824		(10.8	%)		91,618		175,817		203,560		(69.0	%)
Lease financing		1,399		1,705		(17.9	%)		2,617		2,302		6,784		(79.4	%)

Total commercial		676,048		886,854		(23.8	%)		941,297		1,105,200		1,246,346		(45.8	%)
Home equity		4,515		4,737		(4.7	%)		3,057		6,495		7,778		(42.0	%)
Installment		216		230		(6.1	%)		703		692		725		(70.2	%)

Total retail		4,731		4,967		(4.8	%)		3,760		7,187		8,503		(44.4	%)
Residential mortgage		18,575		19,710		(5.8	%)		18,672		19,416		17,304		7.3	%

Total potential problem loans	$	699,354	$	911,531		(23.3	%)	$	963,729	$	1,131,803	$	1,272,153		(45.0	%)


		N/M — Not meaningful.

Net Interest Income Analysis — Taxable Equivalent Basis
Associated Banc-Corp


	Six months ended June 30, 2011							Six months ended June 30, 2010
	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	$	7,012,007	$	153,566		4.41	%	$	8,256,254	$	175,869		4.29	%
Residential mortgage		2,592,749		55,179		4.26			2,008,087		50,251		5.02
Retail		3,235,533		80,025		4.97			3,395,044		88,626		5.25

Total loans		12,840,289		288,770		4.52			13,659,385		314,746		4.64
Investment securities		5,773,545		94,351		3.27			5,449,542		114,087		4.19
Other short-term investments		751,114		2,896		0.77			1,726,778		3,985		0.46

Investments and other		6,524,659		97,247		2.98			7,176,320		118,072		3.29

Total earning assets		19,364,948		386,017		4.00			20,835,705		432,818		4.17
Other assets, net		2,067,081							2,037,998

Total assets	$	21,432,029						$	22,873,703


Interest-bearing liabilities:
Savings deposits	$	958,629	$	571		0.12	%	$	886,045	$	541		0.12	%
Interest-bearing demand deposits		1,788,112		1,369		0.15			2,876,779		3,676		0.26
Money market deposits		5,093,854		8,894		0.35			6,321,344		16,999		0.54
Time deposits, excluding Brokered CDs		2,735,182		22,284		1.64			3,378,329		33,489		2.00

Total interest-bearing deposits, excluding Brokered CDs		10,575,777		33,118		0.63			13,462,497		54,705		0.82
Brokered CDs		349,356		2,032		1.17			637,055		2,400		0.76

Total interest-bearing deposits		10,925,133		35,150		0.65			14,099,552		57,105		0.82
Short and long-term funding		4,160,335		32,249		1.56			2,588,696		34,698		2.69

Total interest-bearing liabilities		15,085,468		67,399		0.90			16,688,248		91,803		1.11
Noninterest-bearing demand deposits		3,223,485							3,000,264
Other liabilities		48,879							19,393
Stockholders’ equity		3,074,197							3,165,798

Total liabilities and stockholders’ equity	$	21,432,029						$	22,873,703

Net interest income and rate spread (1)			$	318,618		3.10	%			$	341,015		3.06	%

Net interest margin (1)						3.30	%						3.29	%
Taxable equivalent adjustment			$	10,772						$	12,000

Net Interest Income Analysis — Taxable Equivalent Basis
Associated Banc-Corp


	Three months ended June 30, 2011							Three months ended June 30, 2010
	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	$	7,114,930	$	77,122		4.35	%	$	8,036,688	$	85,974		4.29	%
Residential mortgage		2,657,740		28,032		4.22			1,996,448		24,781		4.97
Retail		3,232,234		40,033		4.96			3,363,574		43,892		5.23

Total loans		13,004,904		145,187		4.47			13,396,710		154,647		4.63
Investment securities		5,689,728		47,359		3.33			5,176,340		53,984		4.17
Other short-term investments		736,660		1,437		0.78			2,025,587		2,213		0.44

Investments and other		6,426,388		48,796		3.04			7,201,927		56,197		3.12

Total earning assets		19,431,292		193,983		4.00			20,598,637		210,844		4.10
Other assets, net		2,094,863							2,000,058

Total assets	$	21,526,155						$	22,598,695


Interest-bearing liabilities:
Savings deposits	$	999,748	$	308		0.12	%	$	913,347	$	291		0.13	%
Interest-bearing demand deposits		1,811,525		738		0.16			2,833,530		1,898		0.27
Money market deposits		5,039,056		4,206		0.33			6,398,892		8,778		0.55
Time deposits, excluding Brokered CDs		2,655,944		10,667		1.61			3,305,825		16,035		1.95

Total interest-bearing deposits, excluding Brokered CDs		10,506,273		15,919		0.61			13,451,594		27,002		0.81
Brokered CDs		320,741		982		1.23			614,005		1,358		0.89

Total interest-bearing deposits		10,827,014		16,901		0.63			14,065,599		28,360		0.81
Short and long-term funding		4,434,500		17,627		1.59			2,343,119		16,725		2.86

Total interest-bearing liabilities		15,261,514		34,528		0.91			16,408,718		45,085		1.10
Noninterest-bearing demand deposits		3,225,675							2,990,594
Other liabilities		62,126							13,088
Stockholders’ equity		2,976,840							3,186,295

Total liabilities and stockholders’ equity	$	21,526,155						$	22,598,695

Net interest income and rate spread (1)			$	159,455		3.09	%			$	165,759		3.00	%

Net interest margin (1)						3.29	%						3.22	%
Taxable equivalent adjustment			$	5,332						$	5,966


(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
Associated Banc-Corp


	Three months ended June 30, 2011							Three months ended March 31, 2011
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate

Earning assets:
Loans: (1) (2) (3)
Commercial	$	7,114,930	$	77,122		4.35	%	$	6,907,941	$	76,444		4.48	%
Residential mortgage		2,657,740		28,032		4.22			2,527,035		27,147		4.31
Retail		3,232,234		40,033		4.96			3,238,868		39,992		4.98

Total loans		13,004,904		145,187		4.47			12,673,844		143,583		4.58
Investment securities		5,689,728		47,359		3.33			5,858,293		46,993		3.21
Other short-term investments		736,660		1,437		0.78			765,729		1,458		0.76

Investments and other		6,426,388		48,796		3.04			6,624,022		48,451		2.93

Total earning assets		19,431,292		193,983		4.00			19,297,866		192,034		4.01
Other assets, net		2,094,863							2,038,992

Total assets	$	21,526,155						$	21,336,858


Interest-bearing liabilities:
Savings deposits	$	999,748	$	308		0.12	%	$	917,053	$	264		0.12	%
Interest-bearing demand deposits		1,811,525		738		0.16			1,764,439		631		0.15
Money market deposits		5,039,056		4,206		0.33			5,149,261		4,688		0.37
Time deposits, excluding Brokered CDs		2,655,944		10,667		1.61			2,815,301		11,616		1.67

Total interest-bearing deposits, excluding Brokered CDs		10,506,273		15,919		0.61			10,646,054		17,199		0.66
Brokered CDs		320,741		982		1.23			378,289		1,050		1.13

Total interest-bearing deposits		10,827,014		16,901		0.63			11,024,343		18,249		0.67
Short and long-term funding		4,434,500		17,627		1.59			3,883,122		14,622		1.52

Total interest-bearing liabilities		15,261,514		34,528		0.91			14,907,465		32,871		0.89
Noninterest-bearing demand deposits		3,225,675							3,221,271
Other liabilities		62,126							35,486
Stockholders’ equity		2,976,840							3,172,636

Total liabilities and stockholders’ equity	$	21,526,155						$	21,336,858



Net interest income and rate spread (1)			$	159,455		3.09	%			$	159,163		3.12	%

Net interest margin (1)						3.29	%						3.32	%
Taxable equivalent adjustment			$	5,332						$	5,440


(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


					Jun11 vs Mar11									Jun11 vs Jun10
*Period End Loan Composition*	Jun 30, 2011		Mar 31, 2011		% Change			Dec 31, 2010		Sept 30, 2010		Jun 30, 2010		% Change

Commercial and industrial	$	3,202,301	$	2,972,651		7.7	%	$	3,049,752	$	2,989,238	$	2,969,662		7.8	%
Commercial real estate — owner occupied		1,030,060		1,027,826		0.2	%		1,049,798		1,086,258		1,131,687		(9.0	%)
Commercial real estate — all other		2,393,626		2,354,655		1.7	%		2,339,415		2,408,084		2,445,029		(2.1	%)
Real estate — construction		533,804		525,236		1.6	%		553,069		736,387		925,697		(42.3	%)
Lease financing		54,001		56,458		(4.4	%)		60,254		74,690		82,375		(34.4	%)

Total commercial		7,213,792		6,936,826		4.0	%		7,052,288		7,294,657		7,554,450		(4.5	%)
Home equity		2,594,029		2,576,736		0.7	%		2,523,057		2,457,461		2,455,181		5.7	%
Installment		589,714		605,767		(2.7	%)		695,383		721,480		749,588		(21.3	%)

Total retail		3,183,743		3,182,503		0.0	%		3,218,440		3,178,941		3,204,769		(0.7	%)
Residential mortgage		2,692,054		2,535,993		6.2	%		2,346,007		1,898,795		1,842,697		46.1	%

Total loans	$	13,089,589	$	12,655,322		3.4	%	$	12,616,735	$	12,372,393	$	12,601,916		3.9	%


					Jun11 vs Mar11									Jun11 vs Jun10
*Period End Deposit and Customer Funding Composition*	Jun 30, 2011		Mar 31, 2011		% Change			Dec 31, 2010		Sept 30, 2010		Jun 30, 2010		% Change

Demand	$	3,218,722	$	3,285,604		(2.0	%)	$	3,684,965	$	3,054,121	$	2,932,599		9.8	%
Savings		1,007,337		973,122		3.5	%		887,236		902,077		913,146		10.3	%
Interest-bearing demand		1,931,519		1,755,367		10.0	%		1,870,664		2,921,700		2,745,541		(29.6	%)
Money market		4,982,492		4,968,510		0.3	%		5,434,867		6,312,912		6,554,559		(24.0	%)
Brokered CDs		316,670		324,045		(2.3	%)		442,640		442,209		571,626		(44.6	%)
Other time deposits		2,609,310		2,716,995		(4.0	%)		2,905,021		3,171,841		3,252,728		(19.8	%)

Total deposits		14,066,050		14,023,643		0.3	%		15,225,393		16,804,860		16,970,199		(17.1	%)
Customer repo sweeps		930,101		1,048,516		(11.3	%)		563,884		209,866		184,043		N/M
Customer repo term		1,147,938		887,434		29.4	%		—		—		—		N/M

Total customer funding		2,078,039		1,935,950		7.3	%		563,884		209,866		184,043		N/M

Total deposits and customer funding	$	16,144,089	$	15,959,593		1.2	%	$	15,789,277	$	17,014,726	$	17,154,242		(5.9	%)


Network transaction deposits included above in interest-bearing demand and money market		824,003		936,688		(12.0	%)		1,144,134		1,970,050	$	2,698,204		(69.5	%)


N/M = Not meaningful.

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