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

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LOGO

Exhibit 99.1

NEWS RELEASE

Investor Contact:

Brian Klaus, Senior Vice President, Director of Investor Relations

920-491-7059

Media Contact:

Cliff Bowers, Senior Vice President, Director of Public Relations

920-491-7542

Associated Reports First Quarter Earnings of $0.27 per share

Record Commercial loan growth

GREEN BAY, Wis. –– April 17, 2014 –– Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $44 million, or $0.27 per common share, for the quarter ended March 31, 2014.

“We are pleased with our solid results this quarter and remain optimistic about our long-term prospects. This quarter’s strong performance was driven by robust loan growth, particularly in our Commercial lines of business.” said President and CEO Philip B. Flynn. “In this environment, we remain focused on our strategies to enhance efficiency and manage expenses. We will continue to look for opportunities to deploy capital which are consistent with our commitment of building long-term shareholder value at Associated.”

HIGHLIGHTS

•

Average loans grew $416 million or 3% from the fourth quarter

•

Average total commercial loan balances grew a record $420 million, or 4% from the fourth quarter, and accounted for the majority of this quarter’s average loan growth

•

Noninterest expenses of $168 million declined $12 million or 6% from the fourth quarter

•

Net interest income of $165 million increased $7 million or 5% from the comparable year ago period

•

Net interest income, net of interest recoveries, increased $1 million from the fourth quarter

•

Pretax income of $66 million increased $4 million or 7% from the fourth quarter

•

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

•

During the first quarter, the Company repurchased $39 million, or approximately 2.3 million shares, of common stock at an average cost of $17.20 per share

•

Return on Tier 1 common equity was 9.4% for the first quarter

•

Capital ratios remain very strong with a Tier 1 common equity ratio of 11.20% at March 31, 2014

– more –

FIRST QUARTER 2014 FINANCIAL RESULTS

Loans

Average loans of $16.2 billion increased $416 million, or 3% from the fourth quarter, and have increased $716 million on average or 5%, from the year ago quarter. Record total commercial average loan growth of $420 million from the fourth quarter was attributed to increased line utilization, more origination activity, and fewer loan payoffs. Commercial and business lending average balances grew $249 million, or 4% on a linked-quarter basis. Commercial real estate lending average balances grew by $171 million, or 5% from the fourth quarter. Total average consumer loans were essentially flat compared to the prior quarter as the growth in residential mortgage average balances of $70 million was entirely offset by continued, but slower, run off in home equity and installment loan average balances of $73 million during the quarter.

Deposits

As anticipated, first quarter average deposits of $17.0 billion declined $891 million, or 5% compared to the fourth quarter and have declined $156 million, or 1%, from the year ago quarter. As part of the Company’s previously announced funding strategy to reduce collateralized municipal deposits and replace them with lower cost, longer term FHLB borrowings, average money market balances declined $576 million or 7% from the fourth quarter. Seasonal outflows led average checking balances to decline $243 million or 3% from the fourth quarter. Average time deposits continued to decline during the quarter, and have declined $335 million or 17% from the year ago quarter.

Net Interest Income and Net Interest Margin

First quarter net interest income of $165 million was down $2 million from the fourth quarter. However, net interest income, net of interest recoveries, actually increased $1 million from the fourth quarter. In addition, the first quarter had approximately $2 million less interest income due to the day count difference between the quarters.

First quarter net interest margin was 3.12%, a decrease of 11 basis points from the 3.23% reported in the fourth quarter. Asset yields declined 14 basis points from the fourth quarter. The first quarter had $4 million less in interest recoveries compared to the fourth quarter which accounted for approximately 7 basis points of the decline, with the remainder coming from continued loan yield compression. Liability cost management actions reduced total funding costs to 31 basis points, and total interest-bearing deposit costs to 19 basis points, for the first quarter.

– more –

Noninterest Income and Expense

Noninterest income for the first quarter was $74 million, down $2 million or 3% from the fourth quarter and down $8 million or 10% from the year ago quarter. The decrease from the year ago quarter was driven by an $11 million decline in net mortgage banking income as refinancing activity has drastically slowed. Mortgage banking income decreased $2 million from the prior quarter related to a decline in the gain on sales of mortgage loans. First quarter asset gains and losses declined $2 million from the prior quarter, primarily related to fourth quarter real estate gains. Core fee-based revenue was relatively flat compared to the prior quarter, as increases in insurance and brokerage commissions were offset by declines in service charges, trust service fees and other non-deposit fees.

Total noninterest expense for the quarter ended March 31, 2014 was $168 million, down $12 million from the fourth quarter. With the decline in expenses, the efficiency ratio improved to 69% for the first quarter. Personnel expense declined $4 million from the fourth quarter as the Company continues to reduce full time equivalent employees. Business development and advertising expenses declined by $3 million from the previous quarter, primarily related to increased brand advertising during the fourth quarter. Legal and professional fees declined $2 million from the prior quarter related to lower consultant expenses.

Taxes

First quarter income taxes of $21 million were up $7 million from the prior quarter reflecting the recognition of a $6 million tax benefit in the fourth quarter related to a settlement of a tax issue and the expiration of various statutes of limitations. The effective tax rate for the first quarter was 31%.

Credit

The Company reported another quarter of improving credit quality with nonaccrual loans down 4%, to $178 million compared to the fourth quarter, and down 21% from a year ago. The ratio of nonaccrual loans to total loans now stands at 1.08%.

Net charge offs of $5 million for the first quarter were flat from the fourth quarter.

The first quarter provision for credit losses was $5 million, compared to $2 million in the fourth quarter. The Company’s allowance for loan losses was $268 million, representing an allowance equal to 1.63% of loans and a coverage ratio of 151% of nonaccrual loans at March 31, 2014.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common equity ratio of 11.20% at March 31, 2014. The Company’s capital ratios continue to be well in excess of both current and proposed “well-capitalized” regulatory benchmarks.

– more –

FIRST QUARTER 2014 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, April 17, 2014. Interested parties can listen to the call live on the internet through the investor relations section of the company’s website, https://www.associatedbank.com/investor or by dialing 877-445-2557. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 973-935-2959. Participants should ask the operator for the Associated Banc-Corp first quarter 2014 earnings call.

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

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $25 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

This press release contains references to measures which are not defined in generally accepted accounting principles (“GAAP”), including “efficiency ratio,” “Tier 1 Common Equity”, and “core fee-based revenue.” Information concerning these non-GAAP financial measures can be found on page 3 of the attached tables.

# # #

Associated Banc-Corp

Consolidated Balance Sheets (Unaudited)


(in thousands)	March 31, 2014			December 31, 2013			Seql Qtr $ Change			September 30, 2013			June 30, 2013			March 31, 2013			Comp Qtr $ Change
*Assets*
Cash and due from banks	$	526,951		$	455,482		$	71,469		$	526,009		$	422,779		$	336,247		$	190,704
Interest-bearing deposits in other financial institutions		92,071			126,018			(33,947	)		277,761			121,390			82,555			9,516
Federal funds sold and securities purchased under agreements to resell		4,400			20,745			(16,345	)		25,400			10,800			8,600			(4,200	)
Securities held to maturity, at amortized cost		193,759			175,210			18,549			125,095			75,946			54,123			139,636
Securities available for sale, at fair value		5,277,908			5,250,585			27,323			4,840,035			4,854,319			4,950,317			327,591
Federal Home Loan Bank and Federal
Reserve Bank stocks, at cost		181,360			181,249			111			181,129			181,008			152,490			28,870
Loans held for sale		46,529			64,738			(18,209	)		102,052			203,576			173,389			(126,860	)
Loans		16,441,444			15,896,261			545,183			15,585,854			15,746,599			15,551,562			889,882
Allowance for loan losses		(267,916	)		(268,315	)		399			(271,724	)		(277,218	)		(286,923	)		19,007

Loans, net		16,173,528			15,627,946			545,582			15,314,130			15,469,381			15,264,639			908,889
Premises and equipment, net		269,257			270,890			(1,633	)		265,636			258,903			254,674			14,583
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		72,629			74,464			(1,835	)		75,730			74,612			66,294			6,335
Trading assets		40,822			43,728			(2,906	)		49,402			49,732			65,014			(24,192	)
Other assets		997,815			1,006,697			(8,882	)		977,128			965,330			940,258			57,557

*Total assets*	$	24,806,197		$	24,226,920		$	579,277		$	23,688,675		$	23,616,944		$	23,277,768		$	1,528,429

*Liabilities and Stockholders’ Equity*
Noninterest-bearing demand deposits	$	4,478,981		$	4,626,312		$	(147,331	)	$	4,453,663		$	4,259,776		$	4,453,109		$	25,872
Interest-bearing deposits		13,030,946			12,640,855			390,091			13,884,245			12,872,660			12,968,185			62,761

Total deposits		17,509,927			17,267,167			242,760			18,337,908			17,132,436			17,421,294			88,633
Federal funds purchased and securities sold under agreements to repurchase		939,254			475,442			463,812			580,479			545,740			730,855			208,399
Other short-term funding		308,652			265,484			43,168			1,046,401			2,218,760			1,038,697			(730,045	)
Long-term funding		2,932,040			3,087,267			(155,227	)		614,568			614,822			915,063			2,016,977
Trading liabilities		43,450			46,470			(3,020	)		52,430			52,598			70,236			(26,786	)
Accrued expenses and other liabilities		171,850			193,800			(21,950	)		184,607			175,612			165,358			6,492

Total liabilities		21,905,173			21,335,630			569,543			20,816,393			20,739,968			20,341,503			1,563,670
Stockholders’ Equity
Preferred equity		61,158			61,862			(704	)		62,737			63,272			63,272			(2,114	)
Common stock		1,750			1,750			—			1,750			1,750			1,750			—
Surplus		1,623,323			1,617,990			5,333			1,614,516			1,610,243			1,605,966			17,357
Retained earnings		1,402,549			1,392,508			10,041			1,361,498			1,330,737			1,297,692			104,857
Accumulated other comprehensive income (loss)		(11,577	)		(24,244	)		12,667			(37,120	)		(25,015	)		42,991			(54,568	)
Treasury stock		(176,179	)		(158,576	)		(17,603	)		(131,099	)		(104,011	)		(75,406	)		(100,773	)

Total stockholders’ equity		2,901,024			2,891,290			9,734			2,872,282			2,876,976			2,936,265			(35,241	)

*Total liabilities and stockholders’ equity*	$	24,806,197		$	24,226,920		$	579,277		$	23,688,675		$	23,616,944		$	23,277,768		$	1,528,429

Page 5

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)—Quarterly Trend


						Sequential Qtr														Comparable Qtr
(in thousands, except per share amounts)	1Q14		4Q13			$ Change			% Change			3Q13			2Q13			1Q13		$ Change			% Change
*Interest Income*
Interest and fees on loans	$	143,387	$	148,884		$	(5,497	)		(3.7	%)	$	146,219		$	146,896		$	145,527	$	(2,140	)		(1.5	%)
Interest and dividends on investment securities:
Taxable		26,257		24,316			1,941			8.0	%		21,544			21,446			21,613		4,644			21.5	%
Tax-exempt		6,971		6,884			87			1.3	%		6,711			6,785			6,965		6			0.1	%
Other interest		1,449		1,453			(4	)		(0.3	%)		1,260			1,233			1,247		202			16.2	%

Total interest income		178,064		181,537			(3,473	)		(1.9	%)		175,734			176,360			175,352		2,712			1.5	%
*Interest Expense*
Interest on deposits		6,159		7,340			(1,181	)		(16.1	%)		7,617			7,769			8,541		(2,382	)		(27.9	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		305		271			34			12.5	%		308			333			410		(105	)		(25.6	%)
Interest on other short-term funding		116		228			(112	)		(49.1	%)		434			525			332		(216	)		(65.1	%)
Interest on long-term funding		6,511		6,499			12			0.2	%		6,866			7,551			8,416		(1,905	)		(22.6	%)

Total interest expense		13,091		14,338			(1,247	)		(8.7	%)		15,225			16,178			17,699		(4,608	)		(26.0	%)

*Net Interest Income*		164,973		167,199			(2,226	)		(1.3	%)		160,509			160,182			157,653		7,320			4.6	%
Provision for credit losses		5,000		2,300			2,700			117.4	%		(800	)		5,300			3,300		1,700			51.5	%

Net interest income after provision for credit losses		159,973		164,899			(4,926	)		(3.0	%)		161,309			154,882			154,353		5,620			3.6	%
*Noninterest Income*
Trust service fees		11,711		11,938			(227	)		(1.9	%)		11,380			11,405			10,910		801			7.3	%
Service charges on deposit accounts		16,400		17,330			(930	)		(5.4	%)		18,407			17,443			16,829		(429	)		(2.5	%)
Card-based and other nondeposit fees		12,509		12,684			(175	)		(1.4	%)		12,688			12,591			11,950		559			4.7	%
Insurance commissions		12,317		11,274			1,043			9.3	%		11,356			9,631			11,763		554			4.7	%
Brokerage and annuity commissions		4,033		3,881			152			3.9	%		3,792			3,688			3,516		517			14.7	%

Total core fee-based revenue		56,970		57,107			(137	)		(0.2	%)		57,623			54,758			54,968		2,002			3.6	%
Mortgage banking, net		6,361		8,277			(1,916	)		(23.1	%)		3,542			19,263			17,765		(11,404	)		(64.2	%)
Capital market fees, net		2,322		2,771			(449	)		(16.2	%)		2,652			5,074			2,583		(261	)		(10.1	%)
Bank owned life insurance income		4,320		2,787			1,533			55.0	%		2,817			3,281			2,970		1,350			45.5	%
Asset gains (losses), net		728		2,687			(1,959	)		(72.9	%)		1,934			(44	)		836		(108	)		(12.9	%)
Investment securities gains (losses), net		378		(18	)		396			N/M			248			34			300		78			26.0	%
Other		2,442		2,262			180			8.0	%		2,100			1,944			2,578		(136	)		(5.3	%)

Total noninterest income		73,521		75,873			(2,352	)		(3.1	%)		70,916			84,310			82,000		(8,479	)		(10.3	%)
*Noninterest Expense*
Personnel expense		97,698		101,215			(3,517	)		(3.5	%)		98,102			99,791			97,907		(209	)		(0.2	%)
Occupancy		15,560		14,684			876			6.0	%		14,758			14,305			15,662		(102	)		(0.7	%)
Equipment		6,276		6,509			(233	)		(3.6	%)		6,213			6,462			6,167		109			1.8	%
Technology		12,724		12,963			(239	)		(1.8	%)		12,323			12,651			11,508		1,216			10.6	%
Business development and advertising		5,062		7,834			(2,772	)		(35.4	%)		5,947			5,028			4,537		525			11.6	%
Other intangible amortization		991		1,011			(20	)		(2.0	%)		1,010			1,011			1,011		(20	)		(2.0	%)
Loan expense		2,787		3,677			(890	)		(24.2	%)		3,157			3,044			3,284		(497	)		(15.1	%)
Legal and professional fees		4,188		5,916			(1,728	)		(29.2	%)		3,482			5,483			5,345		(1,157	)		(21.6	%)
Losses other than loans		544		1,559			(1,015	)		(65.1	%)		(600	)		499			384		160			41.7	%
Foreclosure/OREO expense		1,896		2,829			(933	)		(33.0	%)		2,515			2,302			2,422		(526	)		(21.7	%)
FDIC expense		5,001		4,879			122			2.5	%		4,755			4,395			5,432		(431	)		(7.9	%)
Other		14,931		16,091			(1,160	)		(7.2	%)		13,509			13,725			13,956		975			7.0	%

Total noninterest expense		167,658		179,167			(11,509	)		(6.4	%)		165,171			168,696			167,615		43			0.0	%

*Income before income taxes*		65,836		61,605			4,231			6.9	%		67,054			70,496			68,738		(2,902	)		(4.2	%)
Income tax expense		20,637		13,847			6,790			49.0	%		21,396			22,608			21,350		(713	)		(3.3	%)

*Net income*		45,199		47,758			(2,559	)		(5.4	%)		45,658			47,888			47,388		(2,189	)		(4.6	%)
Preferred stock dividends		1,244		1,273			(29	)		(2.3	%)		1,285			1,300			1,300		(56	)		(4.3	%)

*Net income available to common equity*	$	43,955	$	46,485		$	(2,530	)		(5.4	%)	$	44,373		$	46,588		$	46,088	$	(2,133	)		(4.6	%)

Earnings Per Common Share:
Basic	$	0.27	$	0.28		$	(0.01	)		(3.6	%)	$	0.27		$	0.28		$	0.27	$	—			0.0	%
Diluted	$	0.27	$	0.28		$	(0.01	)		(3.6	%)	$	0.27		$	0.28		$	0.27	$	—			0.0	%
Average Common Shares Outstanding:
Basic		161,467		162,611			(1,144	)		(0.7	%)		164,954			166,605			168,234		(6,767	)		(4.0	%)
Diluted		162,188		163,235			(1,047	)		(0.6	%)		165,443			166,748			168,404		(6,216	)		(3.7	%)

N/M = Not meaningful.

Page 6

Associated Banc-Corp

Selected Quarterly Information


(in thousands, except per share, full time equivalent employee data and otherwise noted)	1st Qtr 2014			4th Qtr 2013			3rd Qtr 2013			2nd Qtr 2013			1st Qtr 2013
*Per Common Share Data*
Dividends	$	0.09		$	0.09		$	0.08		$	0.08		$	0.08
Market Value:
High		18.35			17.56			17.60			15.69			15.30
Low		15.58			15.34			15.29			13.81			13.46
Close		18.06			17.40			15.49			15.55			15.19
Book value		17.64			17.40			17.10			16.97			17.13
Tier 1 common equity / share		11.88			11.77			11.59			11.42			11.22
Tangible book value / share	$	11.80		$	11.62		$	11.37		$	11.28		$	11.51

*Performance Ratios (annualized)*
Return on average assets		0.76	%		0.80	%		0.78	%		0.82	%		0.83	%
Return on average tangible common equity		9.45			9.87			9.48			9.76			9.81
Return on average Tier 1 common equity (1)		9.38			9.78			9.31			9.94			10.07
Effective tax rate		31.35			22.48			31.91			32.07			31.06
Dividend payout ratio (3)		33.33			32.14			29.63			28.57			29.63

*Average Balances*
Common stockholders’ equity	$	2,826,933		$	2,810,130		$	2,799,885		$	2,857,722		$	2,850,227
Average Tier 1 common equity (1)	$	1,899,535		$	1,885,377		$	1,890,398		$	1,880,826		$	1,856,431

*Selected Trend Information*
Average full time equivalent employees		4,517			4,584			4,699			4,790			4,841
Trust assets under management, at market value ($ in millions)	$	7,535		$	7,424		$	7,078		$	6,894		$	6,913
Total revenue (4)	$	243,150		$	248,110		$	236,373		$	249,488		$	244,743
Core fee-based revenue (5)	$	56,970		$	57,107		$	57,623		$	54,758		$	54,968
Mortgage loans originated for sale during period	$	203,764		$	326,648		$	513,549		$	782,398		$	681,410
Mortgage portfolio serviced for others ($ in millions)	$	8,084		$	8,084		$	8,014		$	7,794		$	7,585
Mortgage servicing rights, net / Portfolio serviced for others		0.77	%		0.78	%		0.79	%		0.79	%		0.69	%

*At Period End*
Loans / deposits		93.90	%		92.06	%		84.99	%		91.91	%		89.27	%
Risk weighted assets ($ in millions) (6) (7)	$	17,075		$	16,694		$	16,359		$	16,479		$	16,163
Tier 1 common equity (1)	$	1,912,083		$	1,913,320		$	1,904,060		$	1,893,875		$	1,881,410
Stockholders’ equity / assets		11.69	%		11.93	%		12.13	%		12.18	%		12.61	%
Tangible common equity / tangible assets (8)		7.96	%		8.11	%		8.21	%		8.25	%		8.64	%
Tangible equity / tangible assets (8)		8.22	%		8.38	%		8.49	%		8.53	%		8.92	%
Tier 1 common equity / risk-weighted assets (6) (7)		11.20	%		11.46	%		11.64	%		11.49	%		11.64	%
Tier 1 leverage ratio (6) (7)		8.46	%		8.70	%		8.76	%		8.73	%		8.78	%
Tier 1 risk-based capital ratio (6) (7)		11.56	%		11.83	%		12.02	%		11.88	%		12.03	%
Total risk-based capital ratio (6) (7)		12.81	%		13.09	%		13.44	%		13.29	%		13.45	%
Shares outstanding, end of period		161,012			162,623			164,303			165,837			167,673

*Non-GAAP Financial Measures Reconciliation*
Efficiency ratio (2)		70.41	%		73.70	%		71.45	%		69.01	%		70.03	%
Taxable equivalent adjustment		(1.35	)		(1.49	)		(1.50	)		(1.38	)		(1.46	)
Asset gains (losses), net		0.22			0.80			0.59			(0.01	)		0.24
Other intangible amortization		(0.42	)		(0.42	)		(0.44	)		(0.41	)		(0.42	)
Efficiency ratio, fully taxable equivalent (2)		68.86	%		72.59	%		70.10	%		67.21	%		68.39	%

(1)

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

(2)

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

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

(4)	Total revenue, a non-GAAP financial measure, is the sum of taxable equivalent net interest income, core fee-based revenues, and other noninterest income categories, as presented on Page 2 in the Consolidated Statements of Income and Page 6 in the Net Interest Income Analysis.

(5)	Core fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions, as presented on Page 2 in the Consolidated Statements of Income.

(6)	March 31, 2014 data is estimated.

(7)

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

(8)

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.

Page 7

Associated Banc-Corp

Selected Asset Quality Information


(in thousands)	Mar 31, 2014			Dec 31, 2013			Mar 14 vs Dec 13 % Change			Sep 30, 2013			Jun 30, 2013			Mar 31, 2013			Mar 14 vs Mar 13 % Change
*Allowance for Loan Losses*
Beginning balance	$	268,315		$	271,724			(1.3	%)	$	277,218		$	286,923		$	297,409			(9.8	%)
Provision for loan losses		5,000			2,000			150.0	%		—			4,000			4,000			25.0	%
Charge offs		(11,361	)		(18,742	)		(39.4	%)		(20,288	)		(21,904	)		(27,128	)		(58.1	%)
Recoveries		5,962			13,333			(55.3	%)		14,794			8,199			12,642			(52.8	%)

Net charge offs		(5,399	)		(5,409	)		(0.2	%)		(5,494	)		(13,705	)		(14,486	)		(62.7	%)

Ending balance	$	267,916		$	268,315			(0.1	%)	$	271,724		$	277,218		$	286,923			(6.6	%)

*Allowance for Unfunded Commitments*
Beginning balance	$	21,900		$	21,600			1.4	%	$	22,400		$	21,100		$	21,800			0.5	%
Provision for unfunded commitments		—			300			N/M			(800	)		1,300			(700	)		N/M

Ending balance	$	21,900		$	21,900			0.0	%	$	21,600		$	22,400		$	21,100			3.8	%

Allowance for credit losses	$	289,816		$	290,215			(0.1	%)	$	293,324		$	299,618		$	308,023			(5.9	%)

*Net Charge Offs*	Mar 31, 2014			Dec 31, 2013			Mar 14 vs Dec 13 % Change			Sep 30, 2013			Jun 30, 2013			Mar 31, 2013			Mar 14 vs Mar 13 % Change
Commercial and industrial	$	2,725		$	4,555			(40.2	%)	$	(447	)	$	1,477		$	696			291.5	%
Commercial real estate—owner occupied		(124	)		967			(112.8	%)		2,076			1,574			1,518			(108.2	%)
Lease financing		—			(16	)		N/M			—			16			(12	)		N/M

Commercial and business lending		2,601			5,506			(52.8	%)		1,629			3,067			2,202			18.1	%
Commercial real estate—investor		(1,031	)		137			N/M			(414	)		2,999			163			N/M
Real estate construction		113			(3,130	)		(103.6	%)		(303	)		(95	)		1,392			(91.9	%)

Commercial real estate lending		(918	)		(2,993	)		(69.3	%)		(717	)		2,904			1,555			(159.0	%)

Total commercial		1,683			2,513			(33.0	%)		912			5,971			3,757			(55.2	%)
Home equity revolving lines of credit		1,182			966			22.4	%		767			2,512			3,615			(67.3	%)
Home equity loans 1st liens		406			372			9.1	%		564			954			765			(46.9	%)
Home equity loans junior liens		859			1,111			(22.7	%)		800			2,034			1,957			(56.1	%)

Home equity		2,447			2,449			(0.1	%)		2,131			5,500			6,337			(61.4	%)
Installment		113			(611	)		(118.5	%)		124			66			177			(36.2	%)
Residential mortgage		1,156			1,058			9.3	%		2,327			2,168			4,215			(72.6	%)

Total consumer		3,716			2,896			28.3	%		4,582			7,734			10,729			(65.4	%)

Total net charge offs	$	5,399		$	5,409			(0.2	%)	$	5,494		$	13,705		$	14,486			(62.7	%)


Net Charge Offs to Average Loans (in basis points) *	Mar 31, 2014			Dec 31, 2013						Sep 30, 2013			Jun 30, 2013			Mar 31, 2013
Commercial and industrial		22			38						(4	)		13			6
Commercial real estate—owner occupied		(5	)		34						72			54			51
Lease financing		—			(12	)					—			12			(8	)

Commercial and business lending		17			37						11			21			16
Commercial real estate—investor		(14	)		2						(6	)		41			2
Real estate construction		5			(145	)					(15	)		(5	)		82

Commercial real estate lending		(10	)		(32	)					(8	)		31			18

Total commercial		7			10						4			25			17
Home equity revolving lines of credit		55			44						34			112			159
Home equity loans 1st liens		23			19						27			42			32
Home equity loans junior liens		171			205						140			336			303

Home equity		55			52						44			108			119
Installment		11			(59	)					11			6			16
Residential mortgage		12			11						25			24			47

Total consumer		25			19						30			50			70

Total net charge offs		14			14						14			35			38


*Credit Quality*	Mar 31, 2014			Dec 31, 2013			Mar 14 vs Dec 13 % Change			Sep 30, 2013			Jun 30, 2013			Mar 31, 2013			Mar 14 vs Mar 13 % Change
Nonaccrual loans	$	177,978		$	185,428			(4.0	%)	$	207,594		$	217,493		$	225,436			(21.1	%)
Other real estate owned (OREO)		19,173			18,118			5.8	%		25,077			27,407			35,156			(45.5	%)

Total nonperforming assets	$	197,151		$	203,546			(3.1	%)	$	232,671		$	244,900		$	260,592			(24.3	%)

Loans 90 or more days past due and still accruing	$	723		$	2,350			(69.2	%)	$	2,063		$	1,548		$	5,690			(87.3	%)
Allowance for loan losses / loans		1.63	%		1.69	%					1.74	%		1.76	%		1.84	%
Allowance for loan losses / nonaccrual loans		150.53			144.70						130.89			127.46			127.27
Nonaccrual loans / total loans		1.08			1.17						1.33			1.38			1.45
Nonperforming assets / total loans plus OREO		1.20			1.28						1.49			1.55			1.67
Nonperforming assets / total assets		0.79			0.84						0.98			1.04			1.12
Net charge offs / average loans (annualized)		0.14			0.14						0.14			0.35			0.38
Year-to-date net charge offs / average loans		0.14			0.25						0.29			0.36			0.38
*Nonaccrual loans by type:*
Commercial and industrial	$	38,488		$	37,719			2.0	%	$	36,105		$	30,302		$	33,242			15.8	%
Commercial real estate—owner occupied		26,735			29,664			(9.9	%)		28,301			24,003			23,199			15.2	%
Lease financing		172			69			149.3	%		99			72			2,165			(92.1	%)

Commercial and business lending		65,395			67,452			(3.0	%)		64,505			54,377			58,606			11.6	%
Commercial real estate—investor		33,611			37,596			(10.6	%)		49,841			60,780			56,776			(40.8	%)
Real estate construction		6,667			6,467			3.1	%		18,670			21,419			22,166			(69.9	%)

Commercial real estate lending		40,278			44,063			(8.6	%)		68,511			82,199			78,942			(49.0	%)

Total commercial		105,673			111,515			(5.2	%)		133,016			136,576			137,548			(23.2	%)
Home equity revolving lines of credit		10,356			11,883			(12.9	%)		11,991			12,940			15,914			(34.9	%)
Home equity loans 1st liens		5,341			6,135			(12.9	%)		6,131			7,898			8,626			(38.1	%)
Home equity loans junior liens		6,788			7,149			(5.0	%)		7,321			7,296			9,405			(27.8	%)

Home equity		22,485			25,167			(10.7	%)		25,443			28,134			33,945			(33.8	%)
Installment		915			1,114			(17.9	%)		1,269			1,533			1,762			(48.1	%)
Residential mortgage		48,905			47,632			2.7	%		47,866			51,250			52,181			(6.3	%)

Total consumer		72,305			73,913			(2.2	%)		74,578			80,917			87,888			(17.7	%)

Total nonaccrual loans	$	177,978		$	185,428			(4.0	%)	$	207,594		$	217,493		$	225,436			(21.1	%)

*	Annualized.

N/M = Not meaningful.

Page 8

Associated Banc-Corp

Selected Asset Quality Information (continued)


(in thousands)	Mar 31, 2014		Dec 31, 2013		Mar 14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar14 vs Mar 13 % Change
*Restructured loans (accruing)*
Commercial and industrial	$	27,776	$	32,517		(14.6	%)	$	32,145	$	30,970	$	29,251		(5.0	%)
Commercial real estate—owner occupied		11,579		13,009		(11.0	%)		14,425		14,336		12,888		(10.2	%)

Commercial and business lending		39,355		45,526		(13.6	%)		46,570		45,306		42,139		(6.6	%)
Commercial real estate—investor		46,020		44,946		2.4	%		35,073		37,299		41,253		11.6	%
Real estate construction		2,954		3,793		(22.1	%)		4,825		5,365		5,540		(46.7	%)

Commercial real estate lending		48,974		48,739		0.5	%		39,898		42,664		46,793		4.7	%

Total commercial		88,329		94,265		(6.3	%)		86,468		87,970		88,932		(0.7	%)
Home equity revolving lines of credit		1,178		1,117		5.5	%		1,118		1,130		880		33.9	%
Home equity loans 1st liens		1,656		1,436		15.3	%		1,628		1,684		1,783		(7.1	%)
Home equity loans junior liens		6,738		7,080		(4.8	%)		7,113		7,119		6,893		(2.2	%)

Home equity		9,572		9,633		(0.6	%)		9,859		9,933		9,556		0.2	%
Installment		225		246		(8.5	%)		416		570		664		(66.1	%)
Residential mortgage		18,798		19,841		(5.3	%)		20,300		20,593		20,941		(10.2	%)

Total consumer		28,595		29,720		(3.8	%)		30,575		31,096		31,161		(8.2	%)

Total restructured loans (accruing)	$	116,924	$	123,985		(5.7	%)	$	117,043	$	119,066	$	120,093		(2.6	%)

Restructured loans in nonaccrual loans (not included above)	$	74,231	$	59,585		24.6	%	$	69,311	$	70,354	$	67,811		9.5	%

*Loans Past Due 30-89 Days*	Mar 31, 2014		Dec 31, 2013		Mar14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar14 vs Mar 13 % Change
Commercial and industrial	$	4,126	$	6,826		(39.6	%)	$	6,518	$	8,516	$	10,263		(59.8	%)
Commercial real estate—owner occupied		5,342		3,106		72.0	%		8,505		8,105		6,804		(21.5	%)
Lease financing		567		—		N/M			1,000		57		283		100.4	%

Commercial and business lending		10,035		9,932		1.0	%		16,023		16,678		17,350		(42.2	%)
Commercial real estate—investor		7,188		23,215		(69.0	%)		21,747		18,269		25,201		(71.5	%)
Real estate construction		679		1,954		(65.3	%)		820		797		2,287		(70.3	%)

Commercial real estate lending		7,867		25,169		(68.7	%)		22,567		19,066		27,488		(71.4	%)

Total commercial		17,902		35,101		(49.0	%)		38,590		35,744		44,838		(60.1	%)
Home equity revolving lines of credit		5,344		6,728		(20.6	%)		6,318		7,739		1,832		191.7	%
Home equity loans 1st liens		1,469		1,110		32.3	%		1,376		1,857		1,869		(21.4	%)
Home equity loans junior liens		3,006		2,842		5.8	%		2,206		2,709		2,848		5.5	%

Home equity		9,819		10,680		(8.1	%)		9,900		12,305		6,549		49.9	%
Installment		1,269		1,150		10.3	%		1,170		1,434		2,500		(49.2	%)
Residential mortgage		4,498		6,118		(26.5	%)		6,722		9,920		8,793		(48.8	%)

Total consumer		15,586		17,948		(13.2	%)		17,792		23,659		17,842		(12.6	%)

Total loans past due 30-89 days	$	33,488	$	53,049		(36.9	%)	$	56,382	$	59,403	$	62,680		(46.6	%)


*Potential Problem Loans*	Mar 31, 2014		Dec 31, 2013		Mar14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar14 vs Mar 13 % Change
Commercial and industrial	$	109,027	$	113,669		(4.1	%)	$	112,947	$	127,382	$	127,367		(14.4	%)
Commercial real estate—owner occupied		64,785		56,789		14.1	%		61,256		75,074		93,098		(30.4	%)
Lease financing		3,065		1,784		71.8	%		207		279		251		N/M

Commercial and business lending		176,877		172,242		2.7	%		174,410		202,735		220,716		(19.9	%)
Commercial real estate—investor		34,790		52,429		(33.6	%)		87,526		89,342		101,775		(65.8	%)
Real estate construction		4,870		5,263		(7.5	%)		7,540		9,184		10,040		(51.5	%)

Commercial real estate lending		39,660		57,692		(31.3	%)		95,066		98,526		111,815		(64.5	%)

Total commercial		216,537		229,934		(5.8	%)		269,476		301,261		332,531		(34.9	%)
Home equity revolving lines of credit		310		303		2.3	%		170		308		450		(31.1	%)
Home equity loans junior liens		741		1,810		(59.1	%)		2,067		2,307		2,871		(74.2	%)

Home equity		1,051		2,113		(50.3	%)		2,237		2,615		3,321		(68.4	%)
Installment		—		50		(100.0	%)		67		83		99		(100.0	%)
Residential mortgage		2,091		3,312		(36.9	%)		5,342		5,917		7,882		(73.5	%)

Total consumer		3,142		5,475		(42.6	%)		7,646		8,615		11,302		(72.2	%)

Total potential problem loans	$	219,679	$	235,409		(6.7	%)	$	277,122	$	309,876	$	343,833		(36.1	%)

N/M = Not meaningful.

Page 9

Associated Banc-Corp

Net Interest Income Analysis—Taxable Equivalent Basis

Sequential Quarter


	Three months ended March 31, 2014							Three months ended December 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	$	6,131,185	$	51,681		3.42	%	$	5,882,438	$	51,498		3.47	%
Commercial real estate lending		3,907,363		35,591		3.69			3,736,314		40,241		4.28

Total commercial		10,038,548		87,272		3.52			9,618,752		91,739		3.79
Residential mortgage		3,926,734		32,664		3.33			3,856,944		32,201		3.34
Retail		2,199,335		24,413		4.48			2,272,588		25,851		4.53

Total loans		16,164,617		144,349		3.61			15,748,284		149,791		3.78
Investment securities		5,450,066		36,922		2.71			5,188,616		35,331		2.72
Other short-term investments		277,820		1,449		2.09			305,165		1,453		1.90

Investments and other		5,727,886		38,371		2.68			5,493,781		36,784		2.68

Total earning assets		21,892,503	$	182,720		3.36			21,242,065	$	186,575		3.50
Other assets, net		2,320,710							2,316,660

Total assets	$	24,213,213						$	23,558,725

Interest-bearing liabilities:
Savings deposits	$	1,195,337	$	220		0.07	%	$	1,200,338	$	248		0.08	%
Interest-bearing demand deposits		2,796,247		823		0.12			2,852,090		1,047		0.15
Money market deposits		7,173,106		2,825		0.16			7,748,650		3,399		0.17
Time deposits		1,659,277		2,291		0.56			1,727,138		2,646		0.61

Total interest-bearing deposits		12,823,967		6,159		0.19			13,528,216		7,340		0.22
Federal funds purchased and securities sold under agreements to repurchase		805,187		305		0.15			613,943		271		0.18
Other short-term funding		328,516		116		0.14			726,551		228		0.12
Long-term funding		3,004,520		6,511		0.87			1,266,464		6,499		2.05

Total short and long-term funding		4,138,223		6,932		0.67			2,606,958		6,998		1.07

Total interest-bearing liabilities		16,962,190	$	13,091		0.31			16,135,174	$	14,338		0.35
Noninterest-bearing demand deposits		4,166,305							4,353,315
Other liabilities		195,950							197,598
Stockholders’ equity		2,888,768							2,872,638

Total liabilities and stockholders’ equity	$	24,213,213						$	23,558,725

Net interest income and rate spread (1)			$	169,629		3.05	%			$	172,237		3.15	%

Net interest margin (1)						3.12	%						3.23	%
Taxable equivalent adjustment			$	4,656						$	5,038


*Net Interest Income Analysis—Taxable Equivalent Basis* *Comparable Quarter*
	Three months ended March 31, 2014							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	$	6,131,185	$	51,681		3.42	%	$	5,615,036	$	50,712		3.66	%
Commercial real estate lending		3,907,363		35,591		3.69			3,592,509		35,864		4.04

Total commercial		10,038,548		87,272		3.52			9,207,545		86,576		3.81
Residential mortgage		3,926,734		32,664		3.33			3,622,455		30,481		3.37
Retail		2,199,335		24,413		4.48			2,618,152		29,381		4.53

Total loans		16,164,617		144,349		3.61			15,448,152		146,438		3.83
Investment securities		5,450,066		36,922		2.71			4,891,714		32,757		2.68
Other short-term investments		277,820		1,449		2.09			341,053		1,247		1.47

Investments and other		5,727,886		38,371		2.68			5,232,767		34,004		2.60

Total earning assets		21,892,503	$	182,720		3.36			20,680,919	$	180,442		3.52
Other assets, net		2,320,710							2,357,789

Total assets	$	24,213,213						$	23,038,708

Interest-bearing liabilities:
Savings deposits	$	1,195,337	$	220		0.07	%	$	1,141,781	$	208		0.07	%
Interest-bearing demand deposits		2,796,247		823		0.12			2,779,929		1,179		0.17
Money market deposits		7,173,106		2,825		0.16			7,044,344		3,615		0.21
Time deposits		1,659,277		2,291		0.56			1,994,406		3,539		0.72

Total interest-bearing deposits		12,823,967		6,159		0.19			12,960,460		8,541		0.27
Federal funds purchased and securities sold under agreements to repurchase		805,187		305		0.15			779,550		410		0.21
Other short-term funding		328,516		116		0.14			1,018,553		332		0.13
Long-term funding		3,004,520		6,511		0.87			960,820		8,416		3.51

Total short and long-term funding		4,138,223		6,932		0.67			2,758,923		9,158		1.33

Total interest-bearing liabilities		16,962,190	$	13,091		0.31			15,719,383	$	17,699		0.45
Noninterest-bearing demand deposits		4,166,305							4,185,924
Other liabilities		195,950							219,902
Stockholders’ equity		2,888,768							2,913,499

Total liabilities and stockholders’ equity	$	24,213,213						$	23,038,708

Net interest income and rate spread (1)			$	169,629		3.05	%			$	162,743		3.07	%

Net interest margin (1)						3.12	%						3.17	%
Taxable equivalent adjustment			$	4,656						$	5,090

(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 10

Associated Banc-Corp

Financial Summary and Comparison

Period End Loan Composition


	Mar 31, 2014		Dec 31, 2013		Mar 14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar 14 vs Mar 13 % Change
Commercial and industrial	$	5,222,141	$	4,822,680		8.3	%	$	4,703,056	$	4,752,838	$	4,651,143		12.3	%
Commercial real estate—owner occupied		1,098,089		1,114,715		(1.5	%)		1,147,352		1,174,866		1,199,513		(8.5	%)
Lease financing		52,500		55,483		(5.4	%)		51,727		55,084		57,908		(9.3	%)

Commercial and business lending		6,372,730		5,992,878		6.3	%		5,902,135		5,982,788		5,908,564		7.9	%
Commercial real estate—investor		3,001,219		2,939,456		2.1	%		2,847,152		3,010,992		2,900,167		3.5	%
Real estate construction		969,617		896,248		8.2	%		834,744		800,569		729,145		33.0	%

Commercial real estate lending		3,970,836		3,835,704		3.5	%		3,681,896		3,811,561		3,629,312		9.4	%

Total commercial		10,343,566		9,828,582		5.2	%		9,584,031		9,794,349		9,537,876		8.4	%
Home equity revolving lines of credit		856,679		874,840		(2.1	%)		875,703		888,162		904,187		(5.3	%)
Home equity loans 1st liens		705,835		742,120		(4.9	%)		794,912		863,779		940,017		(24.9	%)
Home equity loans junior liens		199,488		208,054		(4.1	%)		220,763		234,292		254,203		(21.5	%)

Home equity		1,762,002		1,825,014		(3.5	%)		1,891,378		1,986,233		2,098,407		(16.0	%)
Installment		393,321		407,074		(3.4	%)		420,268		434,029		447,445		(12.1	%)
Residential mortgage		3,942,555		3,835,591		2.8	%		3,690,177		3,531,988		3,467,834		13.7	%

Total consumer		6,097,878		6,067,679		0.5	%		6,001,823		5,952,250		6,013,686		1.4	%

Total loans	$	16,441,444	$	15,896,261		3.4	%	$	15,585,854	$	15,746,599	$	15,551,562		5.7	%

Period End Deposit and Customer Funding Composition


	Mar 31, 2014		Dec 31, 2013		Mar 14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar 14 vs Mar 13 % Change
Noninterest-bearing demand	$	4,478,981	$	4,626,312		(3.2	%)	$	4,453,663	$	4,259,776	$	4,453,109		0.6	%
Savings		1,252,669		1,159,512		8.0	%		1,195,944		1,211,567		1,197,134		4.6	%
Interest-bearing demand		3,084,457		2,889,705		6.7	%		2,735,529		2,802,277		2,966,934		4.0	%
Money market		7,069,173		6,906,442		2.4	%		8,199,281		7,040,317		6,836,678		3.4	%
Brokered CDs		51,235		50,450		1.6	%		56,024		59,206		49,919		2.6	%
Other time		1,573,412		1,634,746		(3.8	%)		1,697,467		1,759,293		1,917,520		(17.9	%)

Total deposits		17,509,927		17,267,167		1.4	%		18,337,908		17,132,436		17,421,294		0.5	%
Customer repo sweeps		548,179		419,247		30.8	%		515,555		489,700		617,038		(11.2	%)
Customer repo term		—		—		N/M			—		—		4,882		(100.0	%)

Total customer funding		548,179		419,247		30.8	%		515,555		489,700		621,920		(11.9	%)

Total deposits and customer funding	$	18,058,106	$	17,686,414		2.1	%	$	18,853,463	$	17,622,136	$	18,043,214		0.1	%

Network transaction deposits included above in interest-bearing demand and money market	$	2,141,976	$	1,936,403		10.6	%	$	2,222,810	$	2,135,306	$	2,054,714		4.2	%
Brokered CDs		51,235		50,450		1.6	%		56,024		59,206		49,919		2.6	%

Total network and brokered funding		2,193,211		1,986,853		10.4	%		2,278,834		2,194,512		2,104,633		4.2	%

Net customer deposits and funding (1)	$	15,864,895	$	15,699,561		1.1	%	$	16,574,629	$	15,427,624	$	15,938,581		(0.5	%)


(1) Total deposits and customer funding excluding total network and brokered funding. *Quarter Average Loan Composition*
	Mar 31, 2014		Dec 31, 2013		Mar 14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar 14 vs Mar 13 % Change
Commercial and industrial	$	4,983,943	$	4,709,435		5.8	%	$	4,680,582	$	4,635,892	$	4,358,486		14.4	%
Commercial real estate—owner occupied		1,093,114		1,119,186		(2.3	%)		1,142,919		1,169,124		1,196,912		(8.7	%)
Lease financing		54,128		53,817		0.6	%		53,244		55,400		59,638		(9.2	%)

Commercial and business lending		6,131,185		5,882,438		4.2	%		5,876,745		5,860,416		5,615,036		9.2	%
Commercial real estate—investor		2,993,046		2,878,176		4.0	%		2,940,115		2,951,524		2,899,930		3.2	%
Real estate construction		914,317		858,138		6.5	%		828,780		770,584		692,579		32.0	%

Commercial real estate lending		3,907,363		3,736,314		4.6	%		3,768,895		3,722,108		3,592,509		8.8	%

Total commercial		10,038,548		9,618,752		4.4	%		9,645,640		9,582,524		9,207,545		9.0	%
Home equity revolving lines of credit		868,614		876,938		(0.9	%)		882,478		896,931		922,084		(5.8	%)
Home equity loans 1st liens		724,995		767,857		(5.6	%)		826,653		902,554		976,466		(25.8	%)
Home equity loans junior liens		203,984		214,557		(4.9	%)		227,021		242,796		262,193		(22.2	%)

Home equity		1,797,593		1,859,352		(3.3	%)		1,936,152		2,042,281		2,160,743		(16.8	%)
Installment		401,742		413,236		(2.8	%)		428,114		441,260		457,409		(12.2	%)
Residential mortgage		3,926,734		3,856,944		1.8	%		3,714,459		3,661,742		3,622,455		8.4	%

Total consumer		6,126,069		6,129,532		(0.1	%)		6,078,725		6,145,283		6,240,607		(1.8	%)

Total loans	$	16,164,617	$	15,748,284		2.6	%	$	15,724,365	$	15,727,807	$	15,448,152		4.6	%

Quarter Average Deposit Composition


	Mar 31, 2014		Dec 31, 2013		Mar 14 vs Dec 13 % Change			Sep 30, 2013		Jun 30, 2013		Mar 31, 2013		Mar 14 vs Mar 13 % Change
Noninterest-bearing demand	$	4,166,305	$	4,353,315		(4.3	%)	$	4,264,304	$	4,191,704	$	4,185,924		(0.5	%)
Savings		1,195,337		1,200,338		(0.4	%)		1,204,743		1,207,959		1,141,781		4.7	%
Interest-bearing demand		2,796,247		2,852,090		(2.0	%)		2,810,962		2,867,524		2,779,929		0.6	%
Money market		7,173,106		7,748,650		(7.4	%)		7,556,050		6,930,554		7,044,344		1.8	%
Time deposits		1,659,277		1,727,138		(3.9	%)		1,773,760		1,907,337		1,994,406		(16.8	%)

Total deposits	$	16,990,272	$	17,881,531		(5.0	%)	$	17,609,819	$	17,105,078	$	17,146,384		(0.9	%)

Page 11

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