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, Investor Relations 920-491-7059 Media Contact: Autumn Latimore, Senior Vice President, Public Relations 414-278-1860

Associated Reports Second Quarter Earnings of $0.28 per share

Earnings per share up 16.7% from a year ago

GREEN BAY, Wis. — July 18, 2013 — Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $47 million, or $0.28 per common share, for the quarter ended June 30, 2013. This compares to net income to common shareholders of $42 million, or $0.24 per common share, for the quarter ended June 30, 2012.

“We are pleased to report another quarter of solid results and continue to look for opportunities to deliver value for our shareholders,” said President and CEO Philip B. Flynn. “Our mortgage banking business had a record quarter and we are encouraged by momentum being created in our other lines of business.” “We remain focused on strengthening our franchise and deploying our capital in a disciplined manner, consistent with our commitment to building long-term shareholder value at Associated.”

HIGHLIGHTS

•

Net income to common shareholders of $47 million, up 10.9% from the prior year period

–

Quarterly earnings have improved 10 consecutive quarters

•

Return on Tier 1 common equity for the quarter was 9.9%, compared to 9.3% for the prior year period

•

Average loan balances increased by $280 million, or 2% from the first quarter and have increased $1.1 billion, or 8% from a year ago

–

Average total commercial loan balances grew by 4% from the first quarter and accounted for the majority of this quarter’s average loan growth

•

Average deposits for the second quarter increased by $2.1 billion, or 14% from a year ago to $17.1 billion

–

Checking and savings deposits continued to grow

•

Credit quality continued to improve with net charge offs, nonaccrual loans, and potential problem loans all declining quarter over quarter

•

During the second quarter, the Company repurchased $30 million, or approximately 2 million shares, of common stock at an average cost of $15.09.

•

Capital ratios remain very strong with a Tier 1 common equity ratio of 11.48%

– more –

SECOND QUARTER 2013 FINANCIAL RESULTS

Loans

Average loans of $15.7 billion increased by $280 million, or 2% from the first quarter and increased $1.1 billion, or 8%, from the year ago quarter. Commercial and business lending average balances increased by $245 million, or 4% from the prior quarter. Commercial real estate lending average balances grew by $130 million, or 4% on a linked-quarter basis. The residential mortgage portfolio average balances grew by $39 million, or 1%, during the quarter. This growth was partially offset by continued run off in home equity and installment loan balances, which experienced an average balance decline of $135 million, or 5%, during the quarter.

Deposits

Average deposits of $17.1 billion were relatively flat compared to the first quarter but have increased by $2.1 billion, or 14%, from the year ago quarter. During the second quarter, average balance growth in checking and savings deposits were offset by a 2% decline in money market deposits coupled with the continued decline in time deposits.

Net Interest Income and Net Interest Margin

Second quarter net interest income of $160 million increased $2 million, or 2% compared to the prior quarter and $6 million, or 4% compared to the year ago quarter.

Second quarter net interest margin was 3.16%, a slight decrease of 1 basis point from the 3.17% reported in first quarter and a decrease of 14 basis points from a year ago. The decrease from the first quarter was the result of a 5 basis point decline in asset yields which was offset by 4 basis points of liability cost management actions.

Noninterest Income and Expense

Noninterest income for the quarter was $84 million, up $2 million, or 3%, from the first quarter and grew $8 million or 11% from the year ago quarter. Trust fees, service charges, non-deposit fees, and brokerage commissions all improved during the quarter. However, core fee revenue was flat to the prior quarter as these improvements were offset by a $3 million reserve related to third party insurance products sold in prior years. Mortgage banking income increased $1 million from the prior quarter as an increase of $3 million in mortgage servicing rights valuation allowance recoveries ($8 million in second quarter compared to $5 million in the first quarter) was partially offset by $2 million in lower gain on sales. The $1 million decline in asset gains and losses was primarily related to a $2 million real estate write down as the Company continues to identify cost efficiency opportunities within its footprint.

– more –

Total noninterest expense for the quarter ended June 30, 2013 was $170 million, up $3 million, or 2%, from the first quarter. Personnel expense increased $2 million from the first quarter, including $1 million of severance charges related to our on-going consolidation and efficiency efforts. Losses other than loans were $2 million higher than the first quarter due to increases in unfunded commitment reserves. The efficiency ratio continued to improve during the period reflecting management’s focus on expense management.

Credit

The Company reported another quarter of improving credit quality with nonaccrual loans down 4%, to $217 million compared to the first quarter, and down 32% from a year ago. The ratio of nonaccrual loans to total loans now stands at 1.38% and has improved for the 13^th consecutive quarter.

Net charge offs of $14 million for the second quarter were down slightly from the first quarter, and were $10 million lower than a year ago.

Second quarter provision for loan losses was $4 million, equal to the first quarter. The Company’s allowance for loan losses was $277 million, representing an allowance equal to 1.76% of loans and representing a coverage ratio of over 127% of nonaccrual loans at June 30, 2013.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common equity ratio of 11.48% at June 30, 2013. The Company’s capital ratios continue to be well in excess of both current and proposed “well-capitalized” regulatory benchmarks.

– more –

SECOND 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, July 18, 2013. 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 888-317-6016. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 412-317-6016. Participants should ask the operator for the Associated Banc-Corp second quarter 2013 earnings call.

An audio archive of the webcast will be available on the company’s website at http://investor.associatedbank.com. A telephone replay will be available one hour after the completion of the call through 8:00 a.m. CT on August 19, 2013, by dialing 877-344-7529 and entering the conference ID number 10030196. The replay number for international callers is 412-317-0088.

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 through approximately 240 banking locations serving more than 150 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.

# # #

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp


(in thousands)	June 30, 2013			March 31, 2013			Seql Qtr $ Change			December 31, 2012			September 30, 2012			June 30, 2012			Comp Qtr $ Change
*Assets*
Cash and due from banks	$	422,779		$	336,247		$	86,532		$	563,304		$	419,529		$	414,760		$	8,019
Interest-bearing deposits in other financial institutions		121,390			82,555			38,835			147,434			531,303			180,050			(58,660	)
Federal funds sold and securities purchased under agreements to resell		10,800			8,600			2,200			27,135			2,460			3,800			7,000
Securities held to maturity, at amortized cost		75,946			54,123			21,823			39,877			21,852			—			75,946
Securities available for sale, at fair value		4,854,319			4,950,317			(95,998	)		4,926,758			4,496,198			4,521,436			332,883
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		181,008			152,490			28,518			166,774			166,100			176,041			4,967
Loans held for sale		203,576			173,389			30,187			261,410			157,093			157,481			46,095
Loans		15,746,599			15,551,562			195,037			15,411,022			14,966,214			14,698,902			1,047,697
Allowance for loan losses		(277,218	)		(286,923	)		9,705			(297,409	)		(315,150	)		(332,658	)		55,440

Loans, net		15,469,381			15,264,639			204,742			15,113,613			14,651,064			14,366,244			1,103,137
Premises and equipment, net		258,903			254,674			4,229			253,958			238,756			225,245			33,658
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		74,612			66,294			8,318			61,176			61,294			64,812			9,800
Trading assets		49,732			65,014			(15,282	)		70,711			76,159			73,484			(23,752	)
Other assets		965,330			940,258			25,072			926,417			987,378			968,579			(3,249	)

*Total assets*	$	23,616,944		$	23,277,768		$	339,176		$	23,487,735		$	22,738,354		$	22,081,100		$	1,535,844

*Liabilities and Stockholders’ Equity*
Noninterest-bearing demand deposits	$	4,259,776		$	4,453,109		$	(193,333	)	$	4,759,556		$	4,320,437		$	3,874,429		$	385,347
Interest-bearing deposits		12,872,660			12,968,185			(95,525	)		12,180,309			12,130,155			11,232,442			1,640,218

Total deposits		17,132,436			17,421,294			(288,858	)		16,939,865			16,450,592			15,106,871			2,025,565
Federal funds purchased and securities sold under agreements to repurchase		545,740			730,855			(185,115	)		750,455			1,138,027			1,253,270			(707,530	)
Other short-term funding		2,218,760			1,038,697			1,180,063			1,576,484			615,258			1,400,000			818,760
Long-term funding		614,822			915,063			(300,241	)		1,015,346			1,305,422			1,150,729			(535,907	)
Trading liabilities		52,598			70,236			(17,638	)		76,343			82,861			80,107			(27,509	)
Accrued expenses and other liabilities		175,612			165,358			10,254			192,843			195,742			180,502			(4,890	)

Total liabilities		20,739,968			20,341,503			398,465			20,551,336			19,787,902			19,171,479			1,568,489
Stockholders’ Equity
Preferred equity		63,272			63,272			—			63,272			63,272			63,272			—
Common stock		1,750			1,750			—			1,750			1,750			1,750			—
Surplus		1,610,243			1,605,966			4,277			1,602,136			1,599,070			1,594,995			15,248
Retained earnings		1,330,737			1,297,692			33,045			1,281,811			1,250,189			1,213,735			117,002
Accumulated other comprehensive income (loss)		(25,015	)		42,991			(68,006	)		48,603			67,303			66,579			(91,594	)
Treasury stock		(104,011	)		(75,406	)		(28,605	)		(61,173	)		(31,132	)		(30,710	)		(73,301	)

Total stockholders’ equity		2,876,976			2,936,265			(59,289	)		2,936,399			2,950,452			2,909,621			(32,645	)

*Total liabilities and stockholders’ equity*	$	23,616,944		$	23,277,768		$	339,176		$	23,487,735		$	22,738,354		$	22,081,100		$	1,535,844

Page 5

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp


	For The Three Months Ended June 30,						Quarter						For The Six Months Ended June 30,					Year-to-Date
(in thousands, except per share amounts)	2013			2012			$ Change			% Change			2013		2012			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	146,896		$	147,188		$	(292	)		(0.2	%)	$	292,423	$	296,211		$	(3,788	)		(1.3	%)
Interest and dividends on investment securities:
Taxable		21,446			23,000			(1,554	)		(6.8	%)		43,059		46,029			(2,970	)		(6.5	%)
Tax-exempt		6,785			7,135			(350	)		(4.9	%)		13,750		14,409			(659	)		(4.6	%)
Other interest		1,233			1,262			(29	)		(2.3	%)		2,480		2,509			(29	)		(1.2	%)

Total interest income		176,360			178,585			(2,225	)		(1.2	%)		351,712		359,158			(7,446	)		(2.1	%)
*Interest Expense*
Interest on deposits		7,769			10,553			(2,784	)		(26.4	%)		16,310		22,589			(6,279	)		(27.8	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		333			612			(279	)		(45.6	%)		743		1,379			(636	)		(46.1	%)
Interest on other short-term funding		525			1,197			(672	)		(56.1	%)		857		2,253			(1,396	)		(62.0	%)
Interest on long-term funding		7,551			11,956			(4,405	)		(36.8	%)		15,967		24,002			(8,035	)		(33.5	%)

Total interest expense		16,178			24,318			(8,140	)		(33.5	%)		33,877		50,223			(16,346	)		(32.5	%)

*Net Interest Income*		160,182			154,267			5,915			3.8	%		317,835		308,935			8,900			2.9	%
Provision for loan losses		4,000			—			4,000			N/M			8,000		—			8,000			N/M

Net interest income after provision for loan losses		156,182			154,267			1,915			1.2	%		309,835		308,935			900			0.3	%
*Noninterest Income*
Trust service fees		11,405			10,125			1,280			12.6	%		22,315		19,912			2,403			12.1	%
Service charges on deposit accounts		17,443			16,768			675			4.0	%		34,272		34,810			(538	)		(1.5	%)
Card-based and other nondeposit fees		12,591			12,084			507			4.2	%		24,541		22,963			1,578			6.9	%
Insurance commissions		9,631			12,912			(3,281	)		(25.4	%)		21,394		24,502			(3,108	)		(12.7	%)
Brokerage and annuity commissions		3,688			4,206			(518	)		(12.3	%)		7,204		8,333			(1,129	)		(13.5	%)

Total core fee-based revenue		54,758			56,095			(1,337	)		(2.4	%)		109,726		110,520			(794	)		(0.7	%)
Mortgage banking, net		19,263			16,735			2,528			15.1	%		37,028		34,389			2,639			7.7	%
Capital market fees, net		5,074			2,673			2,401			89.8	%		7,657		6,389			1,268			19.8	%
Bank owned life insurance income		3,281			3,164			117			3.7	%		6,251		7,456			(1,205	)		(16.2	%)
Asset gains (losses), net		(44	)		(4,984	)		4,940			(99.1	%)		792		(8,578	)		9,370			(109.2	%)
Investment securities gains, net		34			563			(529	)		(94.0	%)		334		603			(269	)		(44.6	%)
Other		1,944			1,705			239			14.0	%		4,522		3,618			904			25.0	%

Total noninterest income		84,310			75,951			8,359			11.0	%		166,310		154,397			11,913			7.7	%
*Noninterest Expense*
Personnel expense		99,791			93,819			5,972			6.4	%		197,698		188,100			9,598			5.1	%
Occupancy		14,305			14,008			297			2.1	%		29,967		29,187			780			2.7	%
Equipment		6,462			5,719			743			13.0	%		12,629		11,187			1,442			12.9	%
Data processing		12,651			11,304			1,347			11.9	%		24,159		20,820			3,339			16.0	%
Business development and advertising		5,028			5,468			(440	)		(8.0	%)		9,565		10,849			(1,284	)		(11.8	%)
Other intangible amortization		1,011			1,049			(38	)		(3.6	%)		2,022		2,098			(76	)		(3.6	%)
Loan expense		3,044			2,948			96			3.3	%		6,328		5,858			470			8.0	%
Legal and professional fees		5,483			5,657			(174	)		(3.1	%)		10,828		15,372			(4,544	)		(29.6	%)
Losses other than loans		1,799			2,060			(261	)		(12.7	%)		1,483		5,610			(4,127	)		(73.6	%)
Foreclosure/OREO expense		2,302			4,343			(2,041	)		(47.0	%)		4,724		7,705			(2,981	)		(38.7	%)
FDIC expense		4,395			4,778			(383	)		(8.0	%)		9,827		9,648			179			1.9	%
Other		13,725			14,877			(1,152	)		(7.7	%)		27,681		29,358			(1,677	)		(5.7	%)

Total noninterest expense		169,996			166,030			3,966			2.4	%		336,911		335,792			1,119			0.3	%

*Income before income taxes*		70,496			64,188			6,308			9.8	%		139,234		127,540			11,694			9.2	%
Income tax expense		22,608			20,871			1,737			8.3	%		43,958		41,590			2,368			5.7	%

*Net income*		47,888			43,317			4,571			10.6	%		95,276		85,950			9,326			10.9	%
Preferred stock dividends and discount		1,300			1,300			—			0.0	%		2,600		2,600			—			0.0	%

*Net income available to common equity*	$	46,588		$	42,017		$	4,571			10.9	%	$	92,676	$	83,350		$	9,326			11.2	%

Earnings Per Common Share:
Basic	$	0.28		$	0.24		$	0.04			16.7	%	$	0.55	$	0.48		$	0.07			14.6	%
Diluted	$	0.28		$	0.24		$	0.04			16.7	%	$	0.55	$	0.48		$	0.07			14.6	%
Average Common Shares Outstanding:
Basic		166,605			172,839			(6,234	)		(3.6	%)		167,415		173,343			(5,928	)		(3.4	%)
Diluted		166,748			172,841			(6,093	)		(3.5	%)		167,552		173,345			(5,793	)		(3.3	%)

N/M = Not meaningful.

Page 6

Consolidated Statements of Income (Unaudited) - Quarterly Trend

Associated Banc-Corp


							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	2Q13			1Q13			$ Change			% Change			4Q12			3Q12			2Q12			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	146,896		$	145,527		$	1,369			0.9	%	$	150,107		$	149,647		$	147,188		$	(292	)		(0.2	%)
Interest and dividends on investment securities:
Taxable		21,446			21,613			(167	)		(0.8	%)		20,368			20,548			23,000			(1,554	)		(6.8	%)
Tax-exempt		6,785			6,965			(180	)		(2.6	%)		7,119			7,127			7,135			(350	)		(4.9	%)
Other interest		1,233			1,247			(14	)		(1.1	%)		2,876			1,334			1,262			(29	)		(2.3	%)

Total interest income		176,360			175,352			1,008			0.6	%		180,470			178,656			178,585			(2,225	)		(1.2	%)
*Interest Expense*
Interest on deposits		7,769			8,541			(772	)		(9.0	%)		9,091			9,751			10,553			(2,784	)		(26.4	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		333			410			(77	)		(18.8	%)		558			750			612			(279	)		(45.6	%)
Interest on other short-term funding		525			332			193			58.1	%		226			815			1,197			(672	)		(56.1	%)
Interest on long-term funding		7,551			8,416			(865	)		(10.3	%)		9,140			11,738			11,956			(4,405	)		(36.8	%)

Total interest expense		16,178			17,699			(1,521	)		(8.6	%)		19,015			23,054			24,318			(8,140	)		(33.5	%)

*Net Interest Income*		160,182			157,653			2,529			1.6	%		161,455			155,602			154,267			5,915			3.8	%
Provision for loan losses		4,000			4,000			—			0.0	%		3,000			—			—			4,000			N/M

Net interest income after provision for loan losses		156,182			153,653			2,529			1.6	%		158,455			155,602			154,267			1,915			1.2	%
*Noninterest Income*
Trust service fees		11,405			10,910			495			4.5	%		10,429			10,396			10,125			1,280			12.6	%
Service charges on deposit accounts		17,443			16,829			614			3.6	%		16,817			17,290			16,768			675			4.0	%
Card-based and other nondeposit fees		12,591			11,950			641			5.4	%		12,690			12,209			12,084			507			4.2	%
Insurance commissions		9,631			11,763			(2,132	)		(18.1	%)		10,862			11,650			12,912			(3,281	)		(25.4	%)
Brokerage and annuity commissions		3,688			3,516			172			4.9	%		3,678			3,632			4,206			(518	)		(12.3	%)

Total core fee-based revenue		54,758			54,968			(210	)		(0.4	%)		54,476			55,177			56,095			(1,337	)		(2.4	%)
Mortgage banking, net		19,263			17,765			1,498			8.4	%		13,530			15,581			16,735			2,528			15.1	%
Capital market fees, net		5,074			2,583			2,491			96.4	%		4,243			3,609			2,673			2,401			89.8	%
Bank owned life insurance income		3,281			2,970			311			10.5	%		3,206			3,290			3,164			117			3.7	%
Asset gains (losses), net		(44	)		836			(880	)		(105.3	%)		(209	)		(3,309	)		(4,984	)		4,940			(99.1	%)
Investment securities gains, net		34			300			(266	)		(88.7	%)		152			3,506			563			(529	)		(94.0	%)
Other		1,944			2,578			(634	)		(24.6	%)		2,507			3,134			1,705			239			14.0	%

Total noninterest income		84,310			82,000			2,310			2.8	%		77,905			80,988			75,951			8,359			11.0	%
*Noninterest Expense*
Personnel expense		99,791			97,907			1,884			1.9	%		98,073			95,231			93,819			5,972			6.4	%
Occupancy		14,305			15,662			(1,357	)		(8.7	%)		17,273			14,334			14,008			297			2.1	%
Equipment		6,462			6,167			295			4.8	%		6,444			5,935			5,719			743			13.0	%
Data processing		12,651			11,508			1,143			9.9	%		11,706			11,022			11,304			1,347			11.9	%
Business development and advertising		5,028			4,537			491			10.8	%		5,395			5,059			5,468			(440	)		(8.0	%)
Other intangible amortization		1,011			1,011			—			0.0	%		1,049			1,048			1,049			(38	)		(3.6	%)
Loan expense		3,044			3,284			(240	)		(7.3	%)		3,130			3,297			2,948			96			3.3	%
Legal and professional fees		5,483			5,345			138			2.6	%		8,174			7,686			5,657			(174	)		(3.1	%)
Losses other than loans		1,799			(316	)		2,115			N/M			3,071			3,577			2,060			(261	)		(12.7	%)
Foreclosure/OREO expense		2,302			2,422			(120	)		(5.0	%)		3,293			4,071			4,343			(2,041	)		(47.0	%)
FDIC expense		4,395			5,432			(1,037	)		(19.1	%)		4,813			5,017			4,778			(383	)		(8.0	%)
Other		13,725			13,956			(231	)		(1.7	%)		13,907			13,426			14,877			(1,152	)		(7.7	%)

Total noninterest expense		169,996			166,915			3,081			1.8	%		176,328			169,703			166,030			3,966			2.4	%

*Income before income taxes*		70,496			68,738			1,758			2.6	%		60,032			66,887			64,188			6,308			9.8	%
Income tax expense		22,608			21,350			1,258			5.9	%		13,404			20,492			20,871			1,737			8.3	%

*Net income*		47,888			47,388			500			1.1	%		46,628			46,395			43,317			4,571			10.6	%
Preferred stock dividends and discount		1,300			1,300			—			0.0	%		1,300			1,300			1,300			—			0.0	%

*Net income available to common equity*	$	46,588		$	46,088		$	500			1.1	%	$	45,328		$	45,095		$	42,017		$	4,571			10.9	%

Earnings Per Common Share:
Basic	$	0.28		$	0.27		$	0.01			3.7	%	$	0.26		$	0.26		$	0.24		$	0.04			16.7	%
Diluted	$	0.28		$	0.27		$	0.01			3.7	%	$	0.26		$	0.26		$	0.24		$	0.04			16.7	%
Average Common Shares Outstanding:
Basic		166,605			168,234			(1,629	)		(1.0	%)		170,707			171,650			172,839			(6,234	)		(3.6	%)
Diluted		166,748			168,404			(1,656	)		(1.0	%)		170,896			171,780			172,841			(6,093	)		(3.5	%)

N/M = Not meaningful.

Page 7

Selected Quarterly Information

Associated Banc-Corp


(in thousands, except per share, full time equivalent employee data and otherwise noted)	YTD 2013			YTD 2012			2nd Qtr 2013			1st Qtr 2013			4th Qtr 2012			3rd Qtr 2012			2nd Qtr 2012
*Summary of Operations*
Net interest income	$	317,835		$	308,935		$	160,182		$	157,653		$	161,455		$	155,602		$	154,267
Provision for loan losses		8,000			—			4,000			4,000			3,000			—			—
Asset gains (losses), net		792			(8,578	)		(44	)		836			(209	)		(3,309	)		(4,984	)
Investment securities gains, net		334			603			34			300			152			3,506			563
Noninterest income (excluding securities & asset gains)		165,184			162,372			84,320			80,864			77,962			80,791			80,372
Noninterest expense		336,911			335,792			169,996			166,915			176,328			169,703			166,030
Income before income taxes		139,234			127,540			70,496			68,738			60,032			66,887			64,188
Income tax expense		43,958			41,590			22,608			21,350			13,404			20,492			20,871
Net income		95,276			85,950			47,888			47,388			46,628			46,395			43,317
Net income available to common equity		92,676			83,350			46,588			46,088			45,328			45,095			42,017
Taxable equivalent adjustment		10,086			10,557			4,996			5,090			5,221			5,268			5,254

*Per Common Share Data*
Net income:
Basic	$	0.55		$	0.48		$	0.28		$	0.27		$	0.26		$	0.26		$	0.24
Diluted		0.55			0.48			0.28			0.27			0.26			0.26			0.24
Dividends		0.16			0.10			0.08			0.08			0.08			0.05			0.05
Market Value:
High	$	15.69		$	14.63		$	15.69		$	15.30		$	13.54		$	13.79		$	13.97
Low		13.46			11.43			13.81			13.46			12.19			12.04			11.76
Close		15.55			13.19			15.55			15.19			13.12			13.16			13.19
Book value		16.97			16.59			16.97			17.13			16.97			16.82			16.59
Tier 1 common equity / share		11.42			10.66			11.42			11.22			11.08			10.89			10.66
Tangible book value		11.28			11.07			11.28			11.51			11.39			11.31			11.07

*Performance Ratios (annualized)*
Earning assets yield		3.49	%		3.83	%		3.47	%		3.52	%		3.70	%		3.73	%		3.80	%
Interest-bearing liabilities rate		0.43			0.68			0.41			0.45			0.51			0.62			0.65
Net interest margin		3.17			3.31			3.16			3.17			3.32			3.26			3.30
Return on average assets		0.83			0.80			0.82			0.83			0.83			0.84			0.80
Return on average tangible common equity		9.78			8.86			9.76			9.81			9.15			9.32			8.87
Return on average Tier 1 common equity (1)		10.00			9.25			9.94			10.07			9.61			9.69			9.26
Efficiency ratio (2)		69.64			72.57			69.54			69.74			73.71			72.81			72.30
Efficiency ratio, fully taxable equivalent (2)		67.91			69.25			67.73			68.10			71.65			69.79			68.77
Effective tax rate		31.57			32.61			32.07			31.06			22.33			30.64			32.52
Dividend payout ratio (3)		29.09	%		20.83	%		28.57	%		29.63	%		30.77	%		19.23	%		20.83	%

*Average Balances*
Assets	$	23,173,203		$	21,671,870		$	23,306,220		$	23,038,708		$	22,461,886		$	22,016,748		$	21,684,600
Earning assets		20,816,828			19,378,888			20,951,244			20,680,919			20,032,432			19,659,796			19,386,046
Interest-bearing liabilities		15,854,444			14,921,209			15,988,021			15,719,383			14,840,162			14,940,697			14,922,006
Loans (4)		15,588,752			14,456,522			15,727,807			15,448,152			15,131,102			14,916,793			14,602,602
Deposits		17,125,617			15,025,625			17,105,078			17,146,384			16,650,268			15,615,856			15,050,684
Short and long-term funding		2,917,657			3,585,023			3,074,647			2,758,923			2,638,661			3,286,943			3,566,346
Common stockholders’ equity		2,853,995			2,839,482			2,857,722			2,850,227			2,915,346			2,870,438			2,852,050
Stockholders’ equity		2,917,267			2,902,754			2,920,994			2,913,499			2,978,618			2,933,710			2,915,322
Average Tier 1 common equity (1)		1,868,696			1,812,684			1,880,826			1,856,431			1,876,686			1,850,610			1,825,441

*Reconciliation of non-GAAP financial measures*
Efficiency ratio (2)		69.64	%		72.57	%		69.54	%		69.74	%		73.71	%		72.81	%		72.30	%
Taxable equivalent adjustment		(1.43	)		(1.62	)		(1.39	)		(1.46	)		(1.57	)		(1.61	)		(1.62	)
Asset gain (losses), net		0.12			(1.26	)		(0.01	)		0.24			(0.06	)		(0.98	)		(1.47	)
Other intangible amortization		(0.42	)		(0.44	)		(0.41	)		(0.42	)		(0.43	)		(0.43	)		(0.44	)
Efficiency ratio, fully taxable equivalent (2)		67.91	%		69.25	%		67.73	%		68.10	%		71.65	%		69.79	%		68.77	%

Page 8

Selected Quarterly Information (continued)

Associated Banc-Corp


(in thousands, except per share, full time equivalent employee data and otherwise noted)	2nd Qtr 2013			1st Qtr 2013			4th Qtr 2012			3rd Qtr 2012			2nd Qtr 2012
*At Period End*
Assets	$	23,616,944		$	23,277,768		$	23,487,735		$	22,738,354		$	22,081,100
Loans		15,746,599			15,551,562			15,411,022			14,966,214			14,698,902
Allowance for loan losses		277,218			286,923			297,409			315,150			332,658
Goodwill		929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net		61,407			52,078			45,949			45,018			47,488
Other intangible assets, net		13,205			14,216			15,227			16,276			17,324
Deposits		17,132,436			17,421,294			16,939,865			16,450,592			15,106,871
Loans / deposits		91.91	%		89.27	%		90.97	%		90.98	%		97.30	%
Risk weighted assets ($ in millions) (5) (7)		16,504			16,163			16,149			15,575			15,188
Tier 1 common equity (1)		1,893,875			1,881,410			1,875,534			1,869,931			1,828,529
Stockholders’ equity / assets		12.18	%		12.61	%		12.50	%		12.98	%		13.18	%
Tangible common equity / tangible assets (6)		8.25	%		8.64	%		8.56	%		8.91	%		8.99	%
Tangible equity / tangible assets (6)		8.53	%		8.92	%		8.84	%		9.20	%		9.29	%
Tier 1 common equity / risk-weighted assets (5) (7)		11.48	%		11.64	%		11.61	%		12.01	%		12.04	%
Tier 1 leverage ratio (5) (7)		8.73	%		8.78	%		8.98	%		9.99	%		9.95	%
Tier 1 risk-based capital ratio (5) (7)		11.86	%		12.03	%		12.01	%		13.57	%		13.64	%
Total risk-based capital ratio (5) (7)		13.27	%		13.45	%		13.42	%		15.00	%		15.08	%
Shares outstanding, end of period		165,837			167,673			169,304			171,657			171,611

*Selected trend information*
Average full time equivalent employees		4,790			4,841			4,915			4,965			4,951
Trust assets under management, at market value ($ in millions)	$	6,894		$	6,913		$	6,454		$	6,163		$	5,934
Mortgage loans originated for sale during period		782,398			681,410			780,469			715,184			738,091
Mortgage portfolio serviced for others ($ in millions)		7,794			7,585			7,453			7,547			7,511
Mortgage servicing rights, net / Portfolio serviced for others		0.79	%		0.69	%		0.62	%		0.60	%		0.63	%

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

(5)	June 30, 2013 data is estimated.

(6)

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.

(7)

The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes simliar 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 9

Selected Asset Quality Information

Associated Banc-Corp


(in thousands)	Jun 30, 2013			Mar 31, 2013			Jun 13 vs Mar 13 % Change			Dec 31, 2012			Sep 30, 2012			Jun 30, 2012			Jun 13 vs Jun 12 % Change
*Allowance for Loan Losses*
Beginning balance	$	286,923		$	297,409			(3.5	%)	$	315,150		$	332,658		$	356,298			(19.5	%)
Provision for loan losses		4,000			4,000			N/M			3,000			—			—			N/M
Charge offs		(21,904	)		(27,128	)		(19.3	%)		(30,417	)		(25,030	)		(30,340	)		(27.8	%)
Recoveries		8,199			12,642			(35.1	%)		9,676			7,522			6,700			22.4	%

Net charge offs		(13,705	)		(14,486	)		(5.4	%)		(20,741	)		(17,508	)		(23,640	)		(42.0	%)

Ending balance	$	277,218		$	286,923			(3.4	%)	$	297,409		$	315,150		$	332,658			(16.7	%)

Reserve for losses on unfunded commitments	$	22,400		$	21,100			6.2	%	$	21,800		$	19,800		$	18,900			18.5	%

*Net Charge Offs*	Jun 30, 2013			Mar 31, 2013			Jun 13 vs Mar 13 % Change			Dec 31, 2012			Sep 30, 2012			Jun 30, 2012			Jun 13 vs Jun 12 % Change
Commercial and industrial	$	1,477		$	696			112.2	%	$	2,630		$	3,831		$	14,544			(89.8	%)
Commercial real estate—owner occupied		1,574			1,518			3.7	%		2,056			(8	)		1,164			35.2	%
Lease financing		16			(12	)		(233.3	%)		754			(20	)		—			N/M

Commercial and business lending		3,067			2,202			39.3	%		5,440			3,803			15,708			(80.5	%)
Commercial real estate—investor		2,999			163			N/M			(232	)		1,905			177			N/M
Real estate construction		(95	)		1,392			(106.8	%)		858			(187	)		558			(117.0	%)

Commercial real estate lending		2,904			1,555			86.8	%		626			1,718			735			295.1	%

Total commercial		5,971			3,757			58.9	%		6,066			5,521			16,443			(63.7	%)
Home equity revolving lines of credit		2,512			3,615			(30.5	%)		3,590			4,180			2,637			(4.7	%)
Home equity loans 1st liens		954			765			24.7	%		1,060			1,056			778			22.6	%
Home equity loans junior liens		2,034			1,957			3.9	%		3,421			2,686			1,869			8.8	%

Home equity		5,500			6,337			(13.2	%)		8,071			7,922			5,284			4.1	%
Installment		66			177			(62.7	%)		1,027			324			371			(82.2	%)
Residential mortgage		2,168			4,215			(48.6	%)		5,577			3,741			1,542			40.6	%

Total consumer		7,734			10,729			(27.9	%)		14,675			11,987			7,197			7.5	%

Total net charge offs	$	13,705		$	14,486			(5.4	%)	$	20,741		$	17,508		$	23,640			(42.0	%)


Net Charge Offs to Average Loans (in basis points) *	Jun 30, 2013			Mar 31, 2013						Dec 31, 2012			Sep 30, 2012			Jun 30, 2012
Commercial and industrial		13			6						25			37			151
Commercial real estate—owner occupied		54			51						69			(0	)		43
Lease financing		12			(8	)					480			(13	)		—

Commercial and business lending		21			16						40			29			126
Commercial real estate—investor		41			2						(3	)		27			3
Real estate construction		(5	)		82						54			(12	)		40

Commercial real estate lending		31			18						7			20			9

Total commercial		25			17						27			25			79
Home equity revolving lines of credit		112			159						148			167			104
Home equity loans 1st liens		42			32						40			38			28
Home equity loans junior liens		336			303						486			361			240

Home equity		108			119						140			132			86
Installment		6			16						86			26			28
Residential mortgage		24			47						64			45			19

Total consumer		50			70						93			77			46

Total net charge offs		35			38						55			47			65


*Credit Quality*	Jun 30, 2013			Mar 31, 2013			Jun 13 vs Mar 13 % Change			Dec 31, 2012			Sep 30, 2012			Jun 30, 2012			Jun 13 vs Jun 12 % Change
Nonaccrual loans	$	217,493		$	225,436			(3.5	%)	$	252,868		$	278,172		$	317,872			(31.6	%)
Other real estate owned (OREO)		27,407			35,156			(22.0	%)		34,900			36,053			40,029			(31.5	%)

Total nonperforming assets	$	244,900		$	260,592			(6.0	%)	$	287,768		$	314,225		$	357,901			(31.6	%)

Loans 90 or more days past due and still accruing		1,548			5,690			(72.8	%)		2,289			2,334			5,224			(70.4	%)
Restructured loans (accruing)		119,066			120,093			(0.9	%)		121,087			135,791			122,229			(2.6	%)
Allowance for loan losses / loans		1.76	%		1.84	%					1.93	%		2.11	%		2.26	%
Allowance for loan losses / nonaccrual loans		127.46			127.27						117.61			113.29			104.65
Nonaccrual loans / total loans		1.38			1.45						1.64			1.86			2.16
Nonperforming assets / total loans plus OREO		1.55			1.67						1.86			2.09			2.43
Nonperforming assets / total assets		1.04			1.12						1.23			1.38			1.62
Net charge offs / average loans (annualized)		0.35			0.38						0.55			0.47			0.65
Year-to-date net charge offs / average loans		0.36			0.38						0.57			0.58			0.63
Nonaccrual loans by type:
Commercial and industrial	$	30,302		$	33,242			(8.8	%)	$	39,182		$	41,694		$	46,111			(34.3	%)
Commercial real estate—owner occupied		24,003			23,199			3.5	%		24,254			27,161			33,417			(28.2	%)
Lease financing		72			2,165			(96.7	%)		3,031			5,927			8,260			(99.1	%)

Commercial and business lending		54,377			58,606			(7.2	%)		66,467			74,782			87,788			(38.1	%)
Commercial real estate—investor		60,780			56,776			7.1	%		58,687			71,522			88,806			(31.6	%)
Real estate construction		21,419			22,166			(3.4	%)		27,302			31,684			36,403			(41.2	%)

Commercial real estate lending		82,199			78,942			4.1	%		85,989			103,206			125,209			(34.4	%)

Total commercial		136,576			137,548			(0.7	%)		152,456			177,988			212,997			(35.9	%)
Home equity revolving lines of credit		12,940			15,914			(18.7	%)		20,446			19,242			22,651			(42.9	%)
Home equity loans 1st liens		7,898			8,626			(8.4	%)		8,717			9,425			7,870			0.4	%
Home equity loans junior liens		7,296			9,405			(22.4	%)		10,052			9,800			11,015			(33.8	%)

Home equity		28,134			33,945			(17.1	%)		39,215			38,467			41,536			(32.3	%)
Installment		1,533			1,762			(13.0	%)		1,838			2,893			3,047			(49.7	%)
Residential mortgage		51,250			52,181			(1.8	%)		59,359			58,824			60,292			(15.0	%)

Total consumer		80,917			87,888			(7.9	%)		100,412			100,184			104,875			(22.8	%)

Total nonaccrual loans	$	217,493		$	225,436			(3.5	%)	$	252,868		$	278,172		$	317,872			(31.6	%)

*	Annualized.

N/M	= Not meaningful.

Page 10

Selected Asset Quality Information (continued)

Associated Banc-Corp


(in thousands)	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
*Restructured loans (accruing)*
Commercial and industrial	$	30,970	$	29,251		5.9	%	$	28,140	$	35,015	$	28,399		9.1	%
Commercial real estate—owner occupied		14,336		12,888		11.2	%		13,852		15,706		7,115		101.5	%
Lease financing		—		—		N/M			—		—		—		N/M

Commercial and business lending		45,306		42,139		7.5	%		41,992		50,721		35,514		27.6	%
Commercial real estate—investor		37,299		41,253		(9.6	%)		41,660		49,249		49,325		(24.4	%)
Real estate construction		5,365		5,540		(3.2	%)		4,530		3,561		5,838		(8.1	%)

Commercial real estate lending		42,664		46,793		(8.8	%)		46,190		52,810		55,163		(22.7	%)

Total commercial		87,970		88,932		(1.1	%)		88,182		103,531		90,677		(3.0	%)
Home equity revolving lines of credit		1,130		880		28.4	%		867		803		759		48.9	%
Home equity loans 1st liens		1,684		1,783		(5.6	%)		1,930		1,904		2,182		(22.8	%)
Home equity loans junior liens		7,119		6,893		3.3	%		7,171		6,760		6,530		9.0	%

Home equity		9,933		9,556		3.9	%		9,968		9,467		9,471		4.9	%
Installment		570		664		(14.2	%)		653		672		779		(26.8	%)
Residential mortgage		20,593		20,941		(1.7	%)		22,284		22,121		21,302		(3.3	%)

Total consumer		31,096		31,161		(0.2	%)		32,905		32,260		31,552		(1.4	%)

Total restructured loans (accruing)	$	119,066	$	120,093		(0.9	%)	$	121,087	$	135,791	$	122,229		(2.6	%)

Restructured loans in nonaccrual loans (not included above)	$	70,354	$	67,811		3.8	%	$	80,590	$	74,251	$	86,395		(18.6	%)

*Loans Past Due 30-89 Days*	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
Commercial and industrial	$	8,516	$	10,263		(17.0	%)	$	11,339	$	3,795	$	4,465		90.7	%
Commercial real estate—owner occupied		8,105		6,804		19.1	%		11,053		4,843		2,125		281.4	%
Lease financing		57		283		(79.9	%)		12		17		39		46.2	%

Commercial and business lending		16,678		17,350		(3.9	%)		22,404		8,655		6,629		151.6	%
Commercial real estate—investor		18,269		25,201		(27.5	%)		13,472		8,809		12,854		42.1	%
Real estate construction		797		2,287		(65.2	%)		3,155		1,254		1,618		(50.7	%)

Commercial real estate lending		19,066		27,488		(30.6	%)		16,627		10,063		14,472		31.7	%

Total commercial		35,744		44,838		(20.3	%)		39,031		18,718		21,101		69.4	%
Home equity revolving lines of credit		7,739		1,832		322.4	%		7,829		9,543		7,298		6.0	%
Home equity loans 1st liens		1,857		1,869		(0.6	%)		1,457		1,535		3,906		(52.5	%)
Home equity loans junior liens		2,709		2,848		(4.9	%)		4,252		3,745		4,098		(33.9	%)

Home equity		12,305		6,549		87.9	%		13,538		14,823		15,302		(19.6	%)
Installment		1,434		2,500		(42.6	%)		2,109		1,693		1,558		(8.0	%)
Residential mortgage		9,920		8,793		12.8	%		9,403		6,878		9,836		0.9	%

Total consumer		23,659		17,842		32.6	%		25,050		23,394		26,696		(11.4	%)

Total loans past due 30-89 days	$	59,403	$	62,680		(5.2	%)	$	64,081	$	42,112	$	47,797		24.3	%


*Potential Problem Loans*	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
Commercial and industrial	$	127,382	$	127,367		0.0	%	$	128,434	$	120,888	$	121,764		4.6	%
Commercial real estate—owner occupied		75,074		93,098		(19.4	%)		99,592		120,034		108,508		(30.8	%)
Lease financing		279		251		11.2	%		264		214		324		(13.9	%)

Commercial and business lending		202,735		220,716		(8.1	%)		228,290		241,136		230,596		(12.1	%)
Commercial real estate—investor		89,342		101,775		(12.2	%)		107,068		133,046		142,453		(37.3	%)
Real estate construction		9,184		10,040		(8.5	%)		13,092		18,477		23,905		(61.6	%)

Commercial real estate lending		98,526		111,815		(11.9	%)		120,160		151,523		166,358		(40.8	%)

Total commercial		301,261		332,531		(9.4	%)		348,450		392,659		396,954		(24.1	%)
Home equity revolving lines of credit		308		450		(31.6	%)		520		518		919		(66.5	%)
Home equity loans 1st liens		—		—		0.0	%		—		—		—		0.0	%
Home equity loans junior liens		2,307		2,871		(19.6	%)		3,150		2,825		3,254		(29.1	%)

Home equity		2,615		3,321		(21.3	%)		3,670		3,343		4,173		(37.3	%)
Installment		83		99		(16.2	%)		111		131		127		(34.6	%)
Residential mortgage		5,917		7,882		(24.9	%)		8,762		8,197		8,658		(31.7	%)

Total consumer		8,615		11,302		(23.8	%)		12,543		11,671		12,958		(33.5	%)

Total potential problem loans	$	309,876	$	343,833		(9.9	%)	$	360,993	$	404,330	$	409,912		(24.4	%)

N/M = Not meaningful.

Page 11

Net Interest Income Analysis—Taxable Equivalent Basis

Associated Banc-Corp


	Three months ended June 30, 2013							Three months ended March 31, 2013
(in thousands)	Average Balance		Interest Income / Expense		Average Yield / Rate			Average Balance		Interest Income / Expense		Average Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending	$	5,860,416	$	53,613		3.67	%	$	5,615,036	$	50,712		3.66	%
Commercial real estate lending		3,722,108		35,804		3.86			3,592,509		35,864		4.04

Total commercial		9,582,524		89,417		3.74		$	9,207,545	$	86,576		3.81
Residential mortgage		3,661,742		30,113		3.29			3,622,455		30,481		3.37
Retail		2,483,541		28,291		4.56			2,618,152		29,381		4.53

Total loans		15,727,807		147,821		3.77			15,448,152		146,438		3.83
Investment securities		4,917,671		32,303		2.63			4,891,714		32,757		2.68
Other short-term investments		305,766		1,232		1.61			341,053		1,247		1.47

Investments and other		5,223,437		33,535		2.57			5,232,767		34,004		2.60

Total earning assets		20,951,244		181,356		3.47			20,680,919		180,442		3.52
Other assets, net		2,354,976							2,357,789

Total assets	$	23,306,220						$	23,038,708

Interest-bearing liabilities:
Savings deposits	$	1,207,959	$	236		0.08	%	$	1,141,781	$	208		0.07	%
Interest-bearing demand deposits		2,867,524		1,190		0.17			2,779,929		1,179		0.17
Money market deposits		6,930,554		3,239		0.19			7,044,344		3,615		0.21
Time deposits		1,907,337		3,104		0.65			1,994,406		3,539		0.72

Total interest-bearing deposits		12,913,374		7,769		0.24			12,960,460		8,541		0.27
Federal funds purchased and securities sold under agreements to repurchase		677,489		333		0.20			779,550		410		0.21
Other short-term funding		1,631,644		525		0.13			1,018,553		332		0.13
Long-term funding		765,514		7,551		3.95			960,820		8,416		3.51

Total short and long-term funding		3,074,647		8,409		1.09			2,758,923		9,158		1.33

Total interest-bearing liabilities		15,988,021		16,178		0.41			15,719,383		17,699		0.45
Noninterest-bearing demand deposits		4,191,704							4,185,924
Other liabilities		205,501							219,902
Stockholders’ equity		2,920,994							2,913,499

Total liabilities and stockholders’ equity	$	23,306,220						$	23,038,708


Net interest income and rate spread (1)			$	165,178		3.06	%			$	162,743		3.07	%

Net interest margin (1)						3.16	%						3.17	%
Taxable equivalent adjustment			$	4,996						$	5,090

Net Interest Income Analysis—Taxable Equivalent Basis

Associated Banc-Corp


	Three months ended June 30, 2013							Three months ended June 30, 2012
(in thousands)	Average Balance		Interest Income / Expense		Average Yield / Rate			Average Balance		Interest Income / Expense		Average Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending	$	5,860,416	$	53,613		3.67	%	$	5,016,701	$	48,584		3.89	%
Commercial real estate lending		3,722,108		35,804		3.86			3,320,186		34,843		4.22

Total commercial		9,582,524		89,417		3.74		$	8,336,887	$	83,427		4.02
Residential mortgage		3,661,742		30,113		3.29			3,273,873		30,266		3.70
Retail		2,483,541		28,291		4.56			2,991,842		34,468		4.63

Total loans		15,727,807		147,821		3.77			14,602,602		148,161		4.07
Investment securities		4,917,671		32,303		2.63			4,402,800		34,416		3.13
Other short-term investments		305,766		1,232		1.61			380,644		1,262		1.33

Investments and other		5,223,437		33,535		2.57			4,783,444		35,678		2.98

Total earning assets		20,951,244		181,356		3.47			19,386,046		183,839		3.80
Other assets, net		2,354,976							2,298,554

Total assets	$	23,306,220						$	21,684,600

Interest-bearing liabilities:
Savings deposits	$	1,207,959	$	236		0.08	%	$	1,109,609	$	211		0.08	%
Interest-bearing demand deposits		2,867,524		1,190		0.17			2,105,440		917		0.18
Money market deposits		6,930,554		3,239		0.19			5,860,043		3,744		0.26
Time deposits		1,907,337		3,104		0.65			2,280,568		5,681		1.00

Total interest-bearing deposits		12,913,374		7,769		0.24			11,355,660		10,553		0.37
Federal funds purchased and securities sold under agreements to repurchase		677,489		333		0.20			1,114,964		612		0.22
Other short-term funding		1,631,644		525		0.13			1,279,319		1,197		0.38
Long-term funding		765,514		7,551		3.95			1,172,063		11,956		4.08

Total short and long-term funding		3,074,647		8,409		1.09			3,566,346		13,765		1.55

Total interest-bearing liabilities		15,988,021		16,178		0.41			14,922,006		24,318		0.65
Noninterest-bearing demand deposits		4,191,704							3,695,024
Other liabilities		205,501							152,248
Stockholders’ equity		2,920,994							2,915,322

Total liabilities and stockholders’ equity	$	23,306,220						$	21,684,600


Net interest income and rate spread (1)			$	165,178		3.06	%			$	159,521		3.15	%

Net interest margin (1)						3.16	%						3.30	%
Taxable equivalent adjustment			$	4,996						$	5,254

(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 12

Net Interest Income Analysis—Taxable Equivalent Basis

Associated Banc-Corp


	Six months ended June 30, 2013							Six months ended June 30, 2012
(in thousands)	Average Balance		Interest Income / Expense		Average Yield / Rate			Average Balance		Interest Income / Expense		Average Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial and business lending	$	5,738,404	$	104,325		3.66	%	$	4,922,827	$	97,569		3.98	%
Commercial real estate lending		3,657,667		71,668		3.95			3,253,668		69,345		4.28

Total commercial		9,396,071		175,993		3.77		$	8,176,495	$	166,914		4.10
Residential mortgage		3,642,207		60,595		3.33			3,256,480		61,230		3.76
Retail		2,550,474		57,672		4.55			3,023,547		69,979		4.65

Total loans		15,588,752		294,260		3.80			14,456,522		298,123		4.14
Investment securities		4,904,764		65,058		2.65			4,507,200		69,083		3.07
Other short-term investments		323,312		2,480		1.54			415,166		2,509		1.21

Investments and other		5,228,076		67,538		2.58			4,922,366		71,592		2.91

Total earning assets		20,816,828		361,798		3.49			19,378,888		369,715		3.83
Other assets, net		2,356,375							2,292,982

Total assets	$	23,173,203						$	21,671,870

Interest-bearing liabilities:
Savings deposits	$	1,175,053	$	444		0.08	%	$	1,069,499	$	396		0.07	%
Interest-bearing demand deposits		2,823,969		2,369		0.17			2,109,947		1,861		0.18
Money market deposits		6,987,134		6,854		0.20			5,774,305		7,302		0.25
Time deposits		1,950,631		6,643		0.69			2,382,435		13,030		1.10

Total interest-bearing deposits		12,936,787		16,310		0.25			11,336,186		22,589		0.40
Federal funds purchased and securities sold under agreements to repurchase		728,238		743		0.21			1,228,842		1,379		0.23
Other short-term funding		1,326,792		857		0.13			1,181,692		2,253		0.38
Long-term funding		862,627		15,967		3.71			1,174,489		24,002		4.09

Total short and long-term funding		2,917,657		17,567		1.21			3,585,023		27,634		1.54

Total interest-bearing liabilities		15,854,444		33,877		0.43			14,921,209		50,223		0.68
Noninterest-bearing demand deposits		4,188,830							3,689,439
Other liabilities		212,662							158,468
Stockholders’ equity		2,917,267							2,902,754

Total liabilities and stockholders’ equity	$	23,173,203						$	21,671,870



Net interest income and rate spread (1)			$	327,921		3.06	%			$	319,492		3.15	%

Net interest margin (1)						3.17	%						3.31	%
Taxable equivalent adjustment			$	10,086						$	10,557

(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 13

Financial Summary and Comparison

Associated Banc-Corp


*Period End Loan Composition*	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
Commercial and industrial	$	4,752,838	$	4,651,143		2.2	%	$	4,502,021	$	4,265,356	$	4,076,370		16.6	%
Commercial real estate—owner occupied		1,174,866		1,199,513		(2.1	%)		1,219,747		1,197,517		1,116,815		5.2	%
Lease financing		55,084		57,908		(4.9	%)		64,196		60,818		62,750		(12.2	%)

Commercial and business lending		5,982,788		5,908,564		1.3	%		5,785,964		5,523,691		5,255,935		13.8	%
Commercial real estate—investor		3,010,992		2,900,167		3.8	%		2,906,759		2,787,158		2,810,521		7.1	%
Real estate—construction		800,569		729,145		9.8	%		655,381		611,186		612,556		30.7	%

Commercial real estate lending		3,811,561		3,629,312		5.0	%		3,562,140		3,398,344		3,423,077		11.3	%

Total commercial		9,794,349		9,537,876		2.7	%		9,348,104		8,922,035		8,679,012		12.9	%
Home equity revolving lines of credit		888,162		904,187		(1.8	%)		936,065		988,800		1,009,634		(12.0	%)
Home equity loans 1st liens		863,779		940,017		(8.1	%)		1,013,757		1,079,075		1,116,093		(22.6	%)
Home equity loans junior liens		234,292		254,203		(7.8	%)		269,672		289,025		303,867		(22.9	%)

Home equity		1,986,233		2,098,407		(5.3	%)		2,219,494		2,356,900		2,429,594		(18.2	%)
Installment		434,029		447,445		(3.0	%)		466,727		482,451		510,831		(15.0	%)
Residential mortgage		3,531,988		3,467,834		1.8	%		3,376,697		3,204,828		3,079,465		14.7	%

Total consumer		5,952,250		6,013,686		(1.0	%)		6,062,918		6,044,179		6,019,890		(1.1	%)

Total loans	$	15,746,599	$	15,551,562		1.3	%	$	15,411,022	$	14,966,214	$	14,698,902		7.1	%


*Period End Deposit and Customer Funding Composition*	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
Noninterest-bearing demand	$	4,259,776	$	4,453,109		(4.3	%)	$	4,759,556	$	4,320,437	$	3,874,429		9.9	%
Savings		1,211,567		1,197,134		1.2	%		1,109,861		1,115,783		1,117,593		8.4	%
Interest-bearing demand		2,802,277		2,966,934		(5.5	%)		2,554,479		2,230,740		2,078,037		34.9	%
Money market		7,040,317		6,836,678		3.0	%		6,518,075		6,682,640		5,822,449		20.9	%
Brokered CDs		59,206		49,919		18.6	%		26,270		33,612		41,104		44.0	%
Other time		1,759,293		1,917,520		(8.3	%)		1,971,624		2,067,380		2,173,259		(19.0	%)

Total deposits		17,132,436		17,421,294		(1.7	%)		16,939,865		16,450,592		15,106,871		13.4	%
Customer repo sweeps		489,700		617,038		(20.6	%)		564,038		600,225		592,203		(17.3	%)
Customer repo term		—		4,882		(100.0	%)		115,032		448,782		619,897		(100.0	%)

Total customer funding		489,700		621,920		(21.3	%)		679,070		1,049,007		1,212,100		(59.6	%)

Total deposits and customer funding	$	17,622,136	$	18,043,214		(2.3	%)	$	17,618,935	$	17,499,599	$	16,318,971		8.0	%

Network transaction deposits included above in interest-bearing demand and money market		2,135,306		2,054,714		3.9	%		1,684,745		1,740,434		1,234,010		73.0	%
Brokered CDs		59,206		49,919		18.6	%		26,270		33,612		41,104		44.0	%

Total network and brokered funding		2,194,512		2,104,633		4.3	%		1,711,015		1,774,046		1,275,114		72.1	%

Net customer deposits and funding (1)		15,427,624		15,938,581		(3.2	%)		15,907,920		15,725,553		15,043,857		2.6	%

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

Average Loan Composition	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
Commercial and industrial	$	4,635,892	$	4,358,486		6.4	%	$	4,182,852	$	4,110,122	$	3,862,439		20.0	%
Commercial real estate—owner occupied		1,169,124		1,196,912		(2.3	%)		1,185,846		1,103,988		1,092,326		7.0	%
Lease financing		55,400		59,638		(7.1	%)		62,497		60,959		61,936		(10.6	%)

Commercial and business lending		5,860,416		5,615,036		4.4	%		5,431,195		5,275,069		5,016,701		16.8	%
Commercial real estate—investor		2,951,524		2,899,930		1.8	%		2,821,023		2,832,447		2,755,943		7.1	%
Real estate construction		770,584		692,579		11.3	%		630,081		607,773		564,243		36.6	%

Commercial real estate lending		3,722,108		3,592,509		3.6	%		3,451,104		3,440,220		3,320,186		12.1	%

Total commercial		9,582,524		9,207,545		4.1	%		8,882,299		8,715,289		8,336,887		14.9	%
Home equity revolving lines of credit		896,931		922,084		(2.7	%)		962,263		995,156		1,018,512		(11.9	%)
Home equity loans 1st liens		902,554		976,466		(7.6	%)		1,047,207		1,097,394		1,135,391		(20.5	%)
Home equity loans junior liens		242,796		262,193		(7.4	%)		280,051		296,021		313,661		(22.6	%)

Total home equity		2,042,281		2,160,743		(5.5	%)		2,289,521		2,388,571		2,467,564		(17.2	%)
Installment		441,260		457,409		(3.5	%)		473,563		492,721		524,278		(15.8	%)
Residential mortgage		3,661,742		3,622,455		1.1	%		3,485,719		3,320,212		3,273,873		11.8	%

Total consumer		6,145,283		6,240,607		(1.5	%)		6,248,803		6,201,504		6,265,715		(1.9	%)

Total loans	$	15,727,807	$	15,448,152		1.8	%	$	15,131,102	$	14,916,793	$	14,602,602		7.7	%


Average Deposit Composition	Jun 30, 2013		Mar 31, 2013		Jun 13 vs Mar 13 % Change			Dec 31, 2012		Sep 30, 2012		Jun 30, 2012		Jun 13 vs Jun 12 % Change
Noninterest-bearing demand	$	4,191,704	$	4,185,924		0.1	%	$	4,448,767	$	3,962,102	$	3,695,024		13.4	%
Savings		1,207,959		1,141,781		5.8	%		1,129,983		1,117,194		1,109,609		8.9	%
Interest-bearing demand		2,867,524		2,779,929		3.2	%		2,236,826		2,136,280		2,105,440		36.2	%
Money market		6,930,554		7,044,344		(1.6	%)		6,797,306		6,240,596		5,860,043		18.3	%
Time deposits		1,907,337		1,994,406		(4.4	%)		2,037,386		2,159,684		2,280,568		(16.4	%)

Total deposits	$	17,105,078	$	17,146,384		(0.2	%)	$	16,650,268	$	15,615,856	$	15,050,684		13.6	%

Page 14

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