8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 22, 2010

Associated Banc-Corp

(Exact name of registrant as specified in its chapter)

Wisconsin	001-31343	39-1098068
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1200 Hansen Road, Green Bay, Wisconsin	54304
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code 920-491-7000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 22, 2010, Associated Banc-Corp announced its earnings for the second quarter of 2010. A copy of the registrant’s press release containing this information is being furnished as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits.
	The following exhibit is furnished as part of this Report on Form 8-K:

99.1 Press release of the registrant dated July 22, 2010, containing financial information for its second quarter ended June 30, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Associated Banc-Corp(Registrant)
Date: July 22, 2010	By:	/s/ Brian R. Bodager
		Brian R. Bodager
		Chief Administrative Officer, General Counsel & Corporate Secretary

ASSOCIATED BANC-CORP

Exhibit Index to Current Report on Form 8-K

Exhibit
Number
99.1	Press release of the registrant dated July 22, 2010, containing financial information for its second quarter ended June 30, 2010.

EX-99.1

Exhibit 99.1

NEWS RELEASE

For more information:
Investors: Joseph B. Selner, Chief Financial Officer, 920-491-7120
Media: Janet L. Ford, SVP Investor Relations Director, 414-278-1890

Associated Banc-Corp Reports Second Quarter 2010 Results

• Provision for loan losses declined to $98 million, down 41% from the first quarter

• Net charge offs of $105 million, down 36% from the prior quarter

• Nonperforming loans down $190 million, or 16%, from the prior quarter

• Capital ratios remain strong, with a Tier 1 capital to risk-weighted assets ratio of 17.25% and total capital to risk-weighted assets ratio of 19.02%

• Net loss to common shareholders of $10.2 million, or $0.06 per common share, for the quarter ended June 30, 2010

GREEN BAY, Wis. — July 22, 2010 — Associated Banc-Corp (NASDAQ: ASBC) today reported a net loss to common shareholders of $10.2 million, or $0.06 per common share, for the quarter ended June 30, 2010. This compares to a net loss of $33.8 million, or $0.20 per common share, for the quarter ended March 31, 2010, and a net loss of $24.7 million, or $0.19 per common share, for the quarter ended June 30, 2009.

“We continued to make good progress in addressing the company’s credit quality issues during the quarter,” said President and CEO, Philip B. Flynn. “The company’s capital and liquidity positions remain strong as we continue to aggressively work through our nonperforming assets and position the company for future profitability and growth.”

At June 30, 2010, the company’s Tier 1 capital to risk-weighted assets ratio was 17.25% and total capital to risk-weighted assets ratio was 19.02%. These ratios continue to significantly exceed the criteria for well capitalized banks and the requirements of banking regulators.

CREDIT QUALITY

The provision for loan losses was $98 million for the quarter ended June 30, 2010, down 41% from $165 million for the first quarter of 2010, and down 37% from $155 million for the second quarter of 2009. Net charge offs for the quarter were $105 million, down 36% from net charge offs of $163 million for the quarter ended March 31, 2010, and up 72% from $61 million for the second quarter of 2009.

Nonperforming loans declined to $1.02 billion at June 30, 2010, down 16% from $1.21 billion at March 31, 2010. Through a combination of bulk and individual loan sales, the company sold nonperforming loans with a net book value totaling $216 million at the beginning of the quarter, which resulted in $57 million of charge offs during the quarter. The nonperforming loans sold came out of the real estate construction and the commercial real estate segments of the company’s loan portfolio.

Potential problem loans continued to decline to $1.27 billion at June 30, 2010, down $95 million, or 7%, from $1.37 billion at March 31, 2010. Loans 30-89 days past due totaled $149 million at June 30, down 10% from $165 million at March 31, 2010, and down 29% from $209 million at June 30, 2009.

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ASSOCIATED REPORTS SECOND QUARTER 2010 RESULTS PAGE 2

The company’s allowance for loan losses was $568 million, or 4.51% of total loans, at June 30, 2010 compared to $576 million, or 4.33% of total loans, at March 31, 2010. This compares to an allowance for loan losses as a percent of total loans of 4.06% at December 31, 2009 and 2.66% at June 30, 2009.

LOANS AND DEPOSITS

At June 30, 2010, the company’s loan portfolio was $12.6 billion, down 5% from $13.3 billion at March 31, 2010, and down 18% from $15.3 billion at June 30, 2009. The greatest declines in the portfolio were in the commercial real estate and construction segments of the portfolio. The declines were primarily due to planned runoff and sales of nonperforming loans, charge offs, and weak new loan demand.

Total deposits grew to $17.0 billion at June 30, 2010 compared to $16.7 billion at December 31, 2009, and $16.3 billion at June 30, 2009. On a year-over-year basis, deposits were up in all categories with the exception of brokered CDs and other time deposits, which were down 39% and 19%, respectively, from June 30, 2009.

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income was $160 million for the three months ended June 30, 2010. This compares to $169 million for the three months ended March 31, 2010, and $179 million for the quarter ended June 30, 2009. The decrease in net interest income during the quarter is primarily the result of a $528 million decline in average outstanding loan balances, and a $543 million decline in average outstanding investment securities balances during the quarter.

The company’s net interest margin was 3.22% for the second quarter of 2010, down 13 basis points from 3.35% for the quarter ended March 31, 2010, and down 18 basis points from 3.40% for quarter ended June 30, 2009. The net interest margin continues to be impacted by the company’s strong liquidity position, which accounted for nine basis points of the reduction during the quarter.

NONINTEREST INCOME AND EXPENSE

Core fee-based revenue remained strong at $64 million for the quarter ended June 30, 2010 compared to $62 million for the first quarter of 2010, and $65 million for the second quarter of 2009. Seasonal increases in debit and credit card transaction volumes were the primary drivers of the increase from the prior quarter.

Noninterest income for the quarter ended June 30, 2010 was $81 million, down $17 million from $98 million for the first quarter of 2010, and down $21 million from the second quarter of 2009. Noninterest income for the quarter was up $7 million from the first quarter, excluding the $24 million gain on the sale of investments during that quarter, and down $22 million from $103 million for the same quarter a year ago, primarily due to a decline in mortgage banking income from the second quarter of 2009.

Mortgage loans originated for sale during the second quarter of 2010 were $502 million compared to $455 million for the first quarter of 2010. Net mortgage banking income totaled $5.5 million compared to $5.4 million for the first quarter of 2010, and $28 million for the second quarter of 2009, as production returned to more normal levels from the historically high levels of 2009.

Total noninterest expense for the quarter ended June 30, 2010 was $155 million, up $3 million from $152 million for the first quarter of 2010, and down $15 million from $170 million in the second quarter of 2009. The decrease from the same quarter last year was primarily due to a one-time FDIC special assessment expense of $11 million and significantly higher foreclosure/OREO expenses in the second quarter of 2009.

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ASSOCIATED REPORTS SECOND QUARTER 2010 RESULTS PAGE 3

CONFERENCE CALL

Senior management will host a conference call for investors and analysts at 4 p.m. Central Daylight Time (CDT) on Thursday, July 22, 2010. The toll-free dial-in number for the live call is 877-348-9354. The number for international callers is 253-237-1160. Participants should ask the operator for the Associated Banc-Corp second quarter 2010 earnings call, or for conference ID number 85356495. A replay of the call will be available starting at 7 p.m. CDT on July 22, 2010 through 11 p.m. CDT on August 22, 2010 by calling 800-642-1687 domestically or 706-645-9291 internationally. The conference ID number, 85356495, is required to access the replay.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $23 billion. Associated has 290 banking offices serving approximately 160 communities in Wisconsin, Illinois, and Minnesota. The Company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.associatedbank.com.

Statements made in this document that are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “will,” “intend,” or similar expressions. Outcomes related to such statements are subject to numerous risk factors and uncertainties including those listed in the Company’s Annual Report filed on Form 10-K as updated by Form 10-Q for the three months ended March 31, 2010.

# # #

Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp

	June 30,			March 31,			Seql Qtr			December 31,			September 30,			June 30,			Comp Qtr
(in thousands)	2010			2010			$ Change			2009			2009			2009			$ Change
Assets
Cash and due from banks	$	324,952		$	284,882		$	40,070		$	770,816		$	430,381		$	463,477		$	(138,525	)
Interest-bearing deposits in other financial institutions		2,210,946			1,998,528			212,418			26,091			13,145			12,910			2,198,036
Federal funds sold and securities purchased under agreements to resell		13,515			19,220			(5,705	)		23,785			17,000			34,679			(21,164	)
Securities available for sale, at fair value		5,322,177			5,267,372			54,805			5,835,533			5,651,076			5,819,229			(497,052	)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		190,870			184,811			6,059			181,316			181,316			181,262			9,608
Loans held for sale		321,060			274,003			47,057			81,238			78,740			424,833			(103,773	)
Loans		12,601,916			13,299,321			(697,405	)		14,128,625			14,765,597			15,310,107			(2,708,191	)
Allowance for loan losses		(567,912	)		(575,573	)		7,661			(573,533	)		(412,530	)		(407,167	)		(160,745	)
Loans, net		12,034,004			12,723,748			(689,744	)		13,555,092			14,353,067			14,902,940			(2,868,936	)
Premises and equipment, net		181,231			183,401			(2,170	)		186,564			185,544			185,794			(4,563	)
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		92,176			91,991			185			92,807			91,506			91,588			588
Other assets		1,139,960			1,150,512			(10,552	)		1,191,732			950,584			967,687			172,273
Total assets	$	22,760,059		$	23,107,636		$	(347,577	)	$	22,874,142		$	22,881,527		$	24,013,567		$	(1,253,508	)
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,932,599		$	3,023,247		$	(90,648	)	$	3,274,973		$	2,984,486		$	2,846,570		$	86,029
Interest-bearing deposits, excl Brokered CDs		13,465,974			13,731,421			(265,447	)		13,311,672			12,808,533			12,543,239			922,735
Brokered CDs		571,626			742,119			(170,493	)		141,968			653,090			930,582			(358,956	)
Total deposits		16,970,199			17,496,787			(526,588	)		16,728,613			16,446,109			16,320,391			649,808
Short-term borrowings		513,406			575,564			(62,158	)		1,226,853			1,517,594			2,712,962			(2,199,556	)
Long-term funding		1,843,691			1,643,979			199,712			1,953,998			1,761,506			1,761,580			82,111
Accrued expenses and other liabilities		246,636			210,797			35,839			226,070			231,659			344,866			(98,230	)
Total liabilities		19,573,932			19,927,127			(353,195	)		20,135,534			19,956,868			21,139,799			(1,565,867	)
Stockholders’ Equity
Preferred equity		512,724			511,910			814			511,107			510,315			509,535			3,189
Common stock		1,737			1,737			—			1,284			1,284			1,284			453
Surplus		1,567,315			1,564,536			2,779			1,082,335			1,080,720			1,078,633			488,682
Retained earnings		1,032,065			1,044,501			(12,436	)		1,081,156			1,268,507			1,266,274			(234,209	)
Accumulated other comprehensive income		73,173			59,744			13,429			63,432			64,919			19,125			54,048
Treasury stock		(887	)		(1,919	)		1,032			(706	)		(1,086	)		(1,083	)		196
Total stockholders’ equity		3,186,127			3,180,509			5,618			2,738,608			2,924,659			2,873,768			312,359
Total liabilities and stockholders’ equity	$	22,760,059		$	23,107,636		$	(347,577	)	$	22,874,142		$	22,881,527		$	24,013,567		$	(1,253,508	)

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

	For The Three Months Ended												For The Six Months Ended,
	June 30,						Quarter						June 30,						Year-to-Date
(in thousands, except per share amounts)	2010			2009			$ Change			% Change			2010			2009			$ Change			% Change
Interest Income
Interest and fees on loans	$	153,815		$	194,352		$	(40,537	)		(20.9	%)	$	313,106		$	396,377		$	(83,271	)		(21.0	%)
Interest and dividends on investment securities and deposits in other financial institutions:
Taxable		42,477			46,688			(4,211	)		(9.0	%)		90,395			97,591			(7,196	)		(7.4	%)
Tax-exempt		8,557			8,819			(262	)		(3.0	%)		17,266			18,313			(1,047	)		(5.7	%)
Interest on federal funds sold and securities purchased under agreements to resell		29			51			(22	)		(43.1	%)		51			114			(63	)		(55.3	%)
Total interest income		204,878			249,910			(45,032	)		(18.0	%)		420,818			512,395			(91,577	)		(17.9	%)
Interest Expense
Interest on deposits		28,360			44,993			(16,633	)		(37.0	%)		57,105			91,592			(34,487	)		(37.7	%)
Interest on short-term borrowings		1,820			5,088			(3,268	)		(64.2	%)		3,846			10,242			(6,396	)		(62.4	%)
Interest on long-term funding		14,905			20,691			(5,786	)		(28.0	%)		30,852			42,145			(11,293	)		(26.8	%)
Total interest expense		45,085			70,772			(25,687	)		(36.3	%)		91,803			143,979			(52,176	)		(36.2	%)
Net Interest Income		159,793			179,138			(19,345	)		(10.8	%)		329,015			368,416			(39,401	)		(10.7	%)
Provision for loan losses		97,665			155,022			(57,357	)		(37.0	%)		263,010			260,446			2,564			1.0	%
Net interest income after provision for loan losses		62,128			24,116			38,012			157.6	%		66,005			107,970			(41,965	)		(38.9	%)
Noninterest Income
Trust service fees		9,517			8,569			948			11.1	%		18,873			17,046			1,827			10.7	%
Service charges on deposit accounts		26,446			29,671			(3,225	)		(10.9	%)		52,505			56,876			(4,371	)		(7.7	%)
Card-based and other nondeposit fees		11,942			11,858			84			0.7	%		22,762			22,032			730			3.3	%
Retail commissions		15,722			14,829			893			6.0	%		31,539			30,341			1,198			3.9	%
Total core fee-based revenue		63,627			64,927			(1,300	)		(2.0	%)		125,679			126,295			(616	)		(0.5	%)
Mortgage banking, net		5,493			28,297			(22,804	)		(80.6	%)		10,900			32,564			(21,664	)		(66.5	%)
Capital market fees, net		(136	)		2,393			(2,529	)		(105.7	%)		(6	)		5,019			(5,025	)		(100.1	%)
Bank owned life insurance income		4,240			3,161			1,079			34.1	%		7,496			8,933			(1,437	)		(16.1	%)
Asset sale gains (losses), net		1,477			(1,287	)		2,764			(214.8	%)		(164	)		(2,394	)		2,230			(93.1	%)
Investment securities gains (losses), net		(146	)		(1,385	)		1,239			(89.5	%)		23,435			9,211			14,224			154.4	%
Other		6,336			5,835			501			8.6	%		11,589			11,290			299			2.6	%
Total noninterest income		80,891			101,941			(21,050	)		(20.6	%)		178,929			190,918			(11,989	)		(6.3	%)
Noninterest Expense
Personnel expense		79,342			81,171			(1,829	)		(2.3	%)		158,697			158,269			428			0.3	%
Occupancy		11,706			12,341			(635	)		(5.1	%)		24,881			25,222			(341	)		(1.4	%)
Equipment		4,450			4,670			(220	)		(4.7	%)		8,835			9,259			(424	)		(4.6	%)
Data processing		7,866			8,126			(260	)		(3.2	%)		15,165			15,723			(558	)		(3.5	%)
Business development and advertising		4,773			4,943			(170	)		(3.4	%)		9,218			9,680			(462	)		(4.8	%)
Other intangible amortization		1,254			1,385			(131	)		(9.5	%)		2,507			2,771			(264	)		(9.5	%)
Legal and professional fees		5,517			5,586			(69	)		(1.2	%)		8,312			9,827			(1,515	)		(15.4	%)
Foreclosure/OREO expense		8,906			13,576			(4,670	)		(34.4	%)		16,635			18,589			(1,954	)		(10.5	%)
FDIC expense		12,027			18,090			(6,063	)		(33.5	%)		23,856			23,865			(9	)		(0.0	%)
Other		19,197			20,143			(946	)		(4.7	%)		38,791			38,090			701			1.8	%
Total noninterest expense		155,038			170,031			(14,993	)		(8.8	%)		306,897			311,295			(4,398	)		(1.4	%)
Loss before income taxes		(12,019	)		(43,974	)		31,955			(72.7	%)		(61,963	)		(12,407	)		(49,556	)		399.4	%
Income tax benefit		(9,240	)		(26,633	)		17,393			(65.3	%)		(32,795	)		(37,791	)		4,996			(13.2	%)
Net income (loss)		(2,779	)		(17,341	)		14,562			(84.0	%)	$	(29,168	)	$	25,384		$	(54,552	)		(214.9	%)
Preferred stock dividends and discount		7,377			7,331			46			0.6	%		14,742			14,652			90			0.6	%
Net income (loss) available to common equity	$	(10,156	)	$	(24,672	)	$	14,516			(58.8	%)	$	(43,910	)	$	10,732		$	(54,642	)		(509.2	%)
Earnings (Loss) Per Common Share:
Basic	$	(0.06	)	$	(0.19	)	$	0.13			(68.4	%)	$	(0.26	)	$	0.08		$	(0.34	)		(425.0	%)
Diluted	$	(0.06	)	$	(0.19	)	$	0.13			(68.4	%)	$	(0.26	)	$	0.08		$	(0.34	)		(425.0	%)
Average Common Shares Outstanding:
Basic		172,921			127,861			45,060			35.2	%		169,401			127,850			41,551			32.5	%
Diluted		172,921			127,861			45,060			35.2	%		169,401			127,856			41,545			32.5	%

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

							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	2Q10			1Q10			$ Change			% Change			4Q09			3Q09			2Q09			$ Change			% Change
Interest Income
Interest and fees on loans	$	153,815		$	159,291		$	(5,476	)		(3.4	%)	$	172,624		$	183,264		$	194,352		$	(40,537	)		(20.9	%)
Interest and dividends on investment securities and deposits in other financial institutions:
Taxable		42,477			47,918			(5,441	)		(11.4	%)		48,567			46,873			46,688			(4,211	)		(9.0	%)
Tax-exempt		8,557			8,709			(152	)		(1.7	%)		8,987			8,498			8,819			(262	)		(3.0	%)
Interest on federal funds sold and securities purchased under agreements to resell		29			22			7			31.8	%		32			16			51			(22	)		(43.1	%)
Total interest income		204,878			215,940			(11,062	)		(5.1	%)		230,210			238,651			249,910			(45,032	)		(18.0	%)
Interest Expense
Interest on deposits		28,360			28,745			(385	)		(1.3	%)		31,471			37,811			44,993			(16,633	)		(37.0	%)
Interest on short-term borrowings		1,820			2,026			(206	)		(10.2	%)		3,062			2,895			5,088			(3,268	)		(64.2	%)
Interest on long-term funding		14,905			15,947			(1,042	)		(6.5	%)		17,324			18,709			20,691			(5,786	)		(28.0	%)
Total interest expense		45,085			46,718			(1,633	)		(3.5	%)		51,857			59,415			70,772			(25,687	)		(36.3	%)
Net Interest Income		159,793			169,222			(9,429	)		(5.6	%)		178,353			179,236			179,138			(19,345	)		(10.8	%)
Provision for loan losses		97,665			165,345			(67,680	)		(40.9	%)		394,789			95,410			155,022			(57,357	)		(37.0	%)
Net interest income (loss) after provision for loan losses		62,128			3,877			58,251			N/M			(216,436	)		83,826			24,116			38,012			157.6	%
Noninterest Income
Trust service fees		9,517			9,356			161			1.7	%		9,906			9,057			8,569			948			11.1	%
Service charges on deposit accounts		26,446			26,059			387			1.5	%		29,213			30,829			29,671			(3,225	)		(10.9	%)
Card-based and other nondeposit fees		11,942			10,820			1,122			10.4	%		12,359			11,586			11,858			84			0.7	%
Retail commissions		15,722			15,817			(95	)		(0.6	%)		15,296			15,041			14,829			893			6.0	%
Total core fee-based revenue		63,627			62,052			1,575			2.5	%		66,774			66,513			64,927			(1,300	)		(2.0	%)
Mortgage banking, net		5,493			5,407			86			1.6	%		9,227			(909	)		28,297			(22,804	)		(80.6	%)
Capital market fees, net		(136	)		130			(266	)		(204.6	%)		291			226			2,393			(2,529	)		(105.7	%)
Bank owned life insurance income		4,240			3,256			984			30.2	%		3,310			3,789			3,161			1,079			34.1	%
Asset sale gains (losses), net		1,477			(1,641	)		3,118			(190.0	%)		(1,551	)		(126	)		(1,287	)		2,764			(214.8	%)
Investment securities gains (losses), net		(146	)		23,581			(23,727	)		N/M			(395	)		(42	)		(1,385	)		1,239			(89.5	%)
Other		6,336			5,253			1,083			20.6	%		7,078			5,858			5,835			501			8.6	%
Total noninterest income		80,891			98,038			(17,147	)		(17.5	%)		84,734			75,309			101,941			(21,050	)		(20.6	%)
Noninterest Expense
Personnel expense		79,342			79,355			(13	)		(0.0	%)		72,620			73,501			81,171			(1,829	)		(2.3	%)
Occupancy		11,706			13,175			(1,469	)		(11.1	%)		12,170			11,949			12,341			(635	)		(5.1	%)
Equipment		4,450			4,385			65			1.5	%		4,551			4,575			4,670			(220	)		(4.7	%)
Data processing		7,866			7,299			567			7.8	%		7,728			7,442			8,126			(260	)		(3.2	%)
Business development and advertising		4,773			4,445			328			7.4	%		4,443			3,910			4,943			(170	)		(3.4	%)
Other intangible amortization		1,254			1,253			1			0.1	%		1,386			1,386			1,385			(131	)		(9.5	%)
Legal and professional fees		5,517			2,795			2,722			97.4	%		6,386			3,349			5,586			(69	)		(1.2	%)
Foreclosure/OREO expense		8,906			7,729			1,177			15.2	%		10,852			8,688			13,576			(4,670	)		(34.4	%)
FDIC expense		12,027			11,829			198			1.7	%		9,618			8,451			18,090			(6,063	)		(33.5	%)
Other		19,197			19,594			(397	)		(2.0	%)		29,260			17,860			20,143			(946	)		(4.7	%)
Total noninterest expense		155,038			151,859			3,179			2.1	%		159,014			141,111			170,031			(14,993	)		(8.8	%)
Income (loss) before income taxes		(12,019	)		(49,944	)		37,925			(75.9	%)		(290,716	)		18,024			(43,974	)		31,955			(72.7	%)
Income tax expense (benefit)		(9,240	)		(23,555	)		14,315			(60.8	%)		(117,479	)		2,030			(26,633	)		17,393			(65.3	%)
Net income (loss)		(2,779	)		(26,389	)		23,610			(89.5	%)		(173,237	)		15,994			(17,341	)		14,562			(84.0	%)
Preferred stock dividends and discount		7,377			7,365			12			0.2	%		7,354			7,342			7,331			46			0.6	%
Net income (loss) available to common equity	$	(10,156	)	$	(33,754	)	$	23,598			(69.9	%)	$	(180,591	)	$	8,652		$	(24,672	)	$	14,516			(58.8	%)
Earnings (Loss) Per Common Share:
Basic	$	(0.06	)	$	(0.20	)		0.14			(70.0	%)	$	(1.41	)	$	0.07		$	(0.19	)		0.13			(68.4	%)
Diluted	$	(0.06	)	$	(0.20	)		0.14			(70.0	%)	$	(1.41	)	$	0.07		$	(0.19	)		0.13			(68.4	%)
Average Common Shares Outstanding:
Basic		172,921			165,842			7,079			4.3	%		127,869			127,863			127,861			45,060			35.2	%
Diluted		172,921			165,842			7,079			4.3	%		127,869			127,863			127,861			45,060			35.2	%

N/M = Not meaningful.

Selected Quarterly Information
Associated Banc-Corp

(in thousands, except per share and full time equivalent employee data)	YTD 2010			YTD 2009			2nd Qtr 2010			1st Qtr 2010			4th Qtr 2009			3rd Qtr 2009			2nd Qtr 2009
Summary of Operations
Net interest income	$	329,015		$	368,416		$	159,793		$	169,222		$	178,353		$	179,236		$	179,138
Provision for loan losses		263,010			260,446			97,665			165,345			394,789			95,410			155,022
Asset sale gains (losses), net		(164	)		(2,394	)		1,477			(1,641	)		(1,551	)		(126	)		(1,287	)
Investment securities gains (losses), net		23,435			9,211			(146	)		23,581			(395	)		(42	)		(1,385	)
Noninterest income (excluding securities & asset gains)		155,658			184,101			79,560			76,098			86,680			75,477			104,613
Noninterest expense		306,897			311,295			155,038			151,859			159,014			141,111			170,031
Income (loss) before income taxes		(61,963	)		(12,407	)		(12,019	)		(49,944	)		(290,716	)		18,024			(43,974	)
Income tax expense (benefit)		(32,795	)		(37,791	)		(9,240	)		(23,555	)		(117,479	)		2,030			(26,633	)
Net income (loss)		(29,168	)		25,384			(2,779	)		(26,389	)		(173,237	)		15,994			(17,341	)
Net income (loss) available to common equity		(43,910	)		10,732			(10,156	)		(33,754	)		(180,591	)		8,652			(24,672	)
Taxable equivalent adjustment		12,000			12,694			5,966			6,034			6,188			5,938			6,150
Per Common Share Data
Net income (loss):
Basic	$	(0.26	)	$	0.08		$	(0.06	)	$	(0.20	)	$	(1.41	)	$	0.07		$	(0.19	)
Diluted		(0.26	)		0.08			(0.06	)		(0.20	)		(1.41	)		0.07			(0.19	)
Dividends		0.02			0.37			0.01			0.01			0.05			0.05			0.05
Market Value:
High	$	16.10		$	21.39		$	16.10		$	14.54		$	13.00		$	12.67		$	19.00
Low		11.48			10.60			12.26			11.48			10.37			9.21			12.50
Close		12.26			12.50			12.26			13.76			11.01			11.42			12.50
Book value		15.46			18.49			15.46			15.44			17.42			18.88			18.49
Tangible book value		9.93			10.97			9.93			9.90			9.93			11.38			10.97
Performance Ratios (annualized)
Earning assets yield		4.17	%		4.82	%		4.10	%		4.24	%		4.59	%		4.62	%		4.70	%
Interest-bearing liabilities rate		1.11			1.59			1.10			1.11			1.24			1.36			1.57
Net interest margin		3.29			3.49			3.22			3.35			3.59			3.50			3.40
Return on average assets		(0.26	)		0.21			(0.05	)		(0.46	)		(3.02	)		0.27			(0.29	)
Return on average equity		(1.86	)		1.76			(0.35	)		(3.40	)		(23.72	)		2.18			(2.39	)
Return on average tangible common equity (1)		(5.22	)		1.51			(2.37	)		(8.17	)		(50.16	)		2.39			(6.88	)
Efficiency ratio (2)		61.79			55.08			63.20			60.42			58.63			54.14			58.65
Effective tax rate (benefit)		(52.93	)		(304.59	)		(76.88	)		(47.16	)		(40.41	)		11.26			(60.57	)
Dividend payout ratio (3)		N/M			462.50			N/M			N/M			N/M			71.43			N/M
Average Balances
Assets	$	22,873,703		$	24,159,647		$	22,598,695		$	23,151,767		$	22,773,576		$	23,362,954		$	24,064,567
Earning assets		20,835,705			21,902,863			20,598,637			21,075,408			20,499,225			21,063,016			21,847,267
Interest-bearing liabilities		16,688,248			18,290,716			16,408,718			16,970,884			16,663,947			17,412,341			18,125,389
Loans		13,659,385			16,275,353			13,396,710			13,924,978			14,605,107			15,248,895			16,122,063
Deposits		17,099,816			15,576,244			17,056,193			17,143,924			16,407,034			16,264,181			16,100,686
Wholesale funding		2,588,696			5,484,245			2,343,119			2,837,001			3,332,642			4,067,830			4,876,970
Common stockholders’ equity		2,654,000			2,396,020			2,674,097			2,633,680			2,387,534			2,394,410			2,400,664
Stockholders’ equity		3,165,798			2,904,679			3,186,295			3,145,074			2,898,132			2,904,210			2,909,700
Common stockholders’ equity/assets		11.60	%		9.92	%		11.83	%		11.38	%		10.48	%		10.25	%		9.98	%
Stockholders’ equity / assets		13.84	%		12.02	%		14.10	%		13.58	%		12.73	%		12.43	%		12.09	%
At Period End
Assets							$	22,760,059		$	23,107,636		$	22,874,142		$	22,881,527		$	24,013,567
Loans								12,601,916			13,299,321			14,128,625			14,765,597			15,310,107
Allowance for loan losses								567,912			575,573			573,533			412,530			407,167
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								65,629			64,190			63,753			61,066			59,762
Other intangible assets								26,547			27,801			29,054			30,440			31,826
Deposits								16,970,199			17,496,787			16,728,613			16,446,109			16,320,391
Wholesale funding								2,357,097			2,219,543			3,180,851			3,279,100			4,474,542
Stockholders’ equity								3,186,127			3,180,509			2,738,608			2,924,659			2,873,768
Stockholders’ equity / assets								14.00	%		13.76	%		11.97	%		12.78	%		11.97	%
Tangible common equity / tangible assets (4)								7.88	%		7.73	%		5.79	%		6.64	%		6.09	%
Tangible equity/tangible assets (5)								10.23	%		10.04	%		8.12	%		8.96	%		8.30	%
Tier 1 risk-based capital ratio								17.25	%		16.40	%		12.52	%		13.14	%		12.45	%
Tier 1 leverage ratio								10.80	%		10.57	%		8.76	%		9.35	%		9.06	%
Total risk-based capital ratio								19.02	%		18.15	%		14.24	%		14.83	%		14.35	%
Shares outstanding, end of period								172,955			172,880			127,876			127,864			127,861
Selected trend information
Average full time equivalent employees								4,766			4,777			4,802			5,004			5,116
Trust assets under management, at market value							$	5,100,000		$	5,500,000		$	5,300,000		$	5,200,000		$	5,000,000
Mortgage loans originated for sale during period								501,965			454,746			671,305			638,229			1,335,175
Mortgage portfolio serviced for others								7,822,000			7,751,000			7,667,000			7,473,000			6,904,000
Mortgage servicing rights, net / Portfolio serviced for others								0.84	%		0.83	%		0.83	%		0.82	%		0.87	%

N/M = Not meaningful.

(1)	Return on average tangible common equity = Net income available to common equity divided by average common equity excluding average goodwill and other intangible assets. This is a non-GAAP financial measure.
(2)	Efficiency ratio = Noninterest expense divided by sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains, net, and asset sales gains, net. This is a non-GAAP financial measure.
(3)	Ratio is based upon basic earnings per common share.
(4)	Tangible common equity to tangible assets = Common stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.
(5)	Tangible equity to tangible assets = Stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.

Selected Asset Quality Information
Associated Banc-Corp

							Jun10 vs Mar10												Jun10 vs Jun09
(in thousands)	Jun 30, 2010			Mar 31, 2010			% Change			Dec 31, 2009			Sept 30, 2009			Jun 30, 2009			% Change
Allowance for Loan Losses
Beginning balance	$	575,573		$	573,533			0.4	%	$	412,530		$	407,167		$	313,228			83.8	%
Provision for loan losses		97,665			165,345			(40.9	%)		394,789			95,410			155,022			(37.0	%)
Charge offs		(113,170	)		(174,627	)		(35.2	%)		(236,367	)		(92,340	)		(63,325	)		78.7	%
Recoveries		7,844			11,322			(30.7	%)		2,581			2,293			2,242			249.9	%
Net charge offs		(105,326	)		(163,305	)		(35.5	%)		(233,786	)		(90,047	)		(61,083	)		72.4	%
Ending balance	$	567,912		$	575,573			(1.3	%)	$	573,533		$	412,530		$	407,167			39.5	%

Net Charge Offs

					Jun10 vs Mar10									Jun10 vs Jun09
	Jun 30, 2010		Mar 31, 2010		% Change			Dec 31, 2009		Sept 30, 2009		Jun 30, 2009		% Change
Commercial, financial & agricultural	$	5,557	$	63,699		(91.3	%)	$	42,940	$	57,480	$	19,367		(71.3	%)
Commercial real estate		37,004		21,328		73.5	%		40,550		4,449		8,382		341.5	%
Real estate — construction		46,135		60,186		(23.3	%)		124,659		12,837		16,249		183.9	%
Lease financing		297		774		(61.6	%)		261		319		988		(69.9	%)
Total commercial		88,993		145,987		(39.0	%)		208,410		75,085		44,986		97.8	%
Home equity		11,213		11,769		(4.7	%)		16,503		11,202		10,343		8.4	%
Installment		1,887		2,222		(15.1	%)		2,099		2,433		2,321		(18.7	%)
Total retail		13,100		13,991		(6.4	%)		18,602		13,635		12,664		3.4	%
Residential mortgage		3,233		3,327		(2.8	%)		6,774		1,327		3,433		(5.8	%)
Total net charge offs	$	105,326	$	163,305		(35.5	%)	$	233,786	$	90,047	$	61,083		72.4	%

Net Charge Offs to Average Loans (in basis points)

	Jun 30, 2010		Mar 31, 2010		Dec 31, 2009		Sept 30, 2009		Jun 30, 2009
Commercial, financial & agricultural		73		795		490		611		191
Commercial real estate		398		230		412		45		92
Real estate — construction		1,582		1,780		3,185		285		307
Lease financing		141		341		105		119		349
Total commercial		444		698		915		313		182
Home equity		183		190		254		170		152
Installment		83		98		94		113		110
Total retail		156		166		213		156		142
Residential mortgage		65		67		127		23		53
Total net charge offs		315		476		635		234		152

Credit Quality

							Jun10 vs Mar10												Jun10 vs Jun09
	Jun 30, 2010			Mar 31, 2010			% Change			Dec 31, 2009			Sept 30, 2009			Jun 30, 2009			% Change
Nonaccrual loans	$	975,641		$	1,180,185			(17.3	%)	$	1,077,799		$	845,320		$	700,514			39.3	%
Loans 90 or more days past due and still accruing		3,207			6,353			(49.5	%)		24,981			23,174			19,785			(83.8	%)
Restructured loans		40,865			23,420			74.5	%		19,037			17,256			13,089			212.2	%
Total nonperforming loans		1,019,713			1,209,958			(15.7	%)		1,121,817			885,750			733,388			39.0	%
Other real estate owned (OREO)		51,223			62,220			(17.7	%)		68,441			60,010			51,633			(0.8	%)
Total nonperforming assets	$	1,070,936		$	1,272,178			(15.8	%)	$	1,190,258		$	945,760		$	785,021			36.4	%
Allowance for loan losses / loans		4.51	%		4.33	%					4.06	%		2.79	%		2.66	%
Allowance for loan losses / nonperforming loans		55.69			47.57						51.13			46.57			55.52
Allowance for loan losses / nonaccrual loans		58.21			48.77						53.21			48.80			58.12
Nonperforming loans / total loans		8.09			9.10						7.94			6.00			4.79
Nonaccrual loans / total loans		7.74			8.87						7.63			5.72			4.58
Nonperforming assets / total loans plus OREO		8.46			9.52						8.38			6.38			5.11
Nonperforming assets / total assets		4.71			5.51						5.20			4.13			3.27
Net charge offs / average loans (annualized)		3.15			4.76						6.35			2.34			1.52
Year-to-date net charge offs / average loans		3.97			4.76						2.84			1.75			1.47
Nonperforming loans by type:
Commercial, financial & agricultural	$	184,808		$	180,182			2.6	%	$	234,418		$	209,843		$	187,943			(1.7	%)
Commercial real estate		360,974			356,853			1.2	%		307,478			213,736			165,929			117.5	%
Real estate — construction		284,646			487,552			(41.6	%)		413,360			301,844			264,402			7.7	%
Lease financing		27,953			29,466			(5.1	%)		19,506			18,814			1,929			N/M
Total commercial		858,381			1,054,053			(18.6	%)		974,762			744,237			620,203			38.4	%
Home equity		46,534			47,231			(1.5	%)		44,257			45,905			38,474			20.9	%
Installment		7,243			7,059			2.6	%		7,577			7,387			7,545			(4.0	%)
Total retail		53,777			54,290			(0.9	%)		51,834			53,292			46,019			16.9	%
Residential mortgage		107,555			101,615			5.8	%		95,221			88,221			67,166			60.1	%
Total nonperforming loans	$	1,019,713		$	1,209,958			(15.7	%)	$	1,121,817		$	885,750		$	733,388			39.0	%

N/M — Not meaningful.

Selected Asset Quality Information (continued)
Associated Banc-Corp

					Jun10 vs Mar10									Jun10 vs Jun09
(in thousands)	Jun 30, 2010		Mar 31, 2010		% Change			Dec 31, 2009		Sept 30, 2009		Jun 30, 2009		% Change
Restructured loans
Commercial, financial & agricultural	$	635	$	—		N/M		$	—	$	—	$	15		N/M
Commercial real estate		7,820		—		N/M			—		—		—		N/M
Real estate — construction		4,835		763		N/M			480		265		415		N/M
Lease financing		—		—		N/M			—		—		—		N/M
Total commercial		13,290		763		N/M			480		265		430		N/M
Home equity		3,601		6,482		(44.4	%)		5,068		4,437		2,749		31.0	%
Installment		560		300		86.7	%		79		14		21		N/M
Total retail		4,161		6,782		(38.6	%)		5,147		4,451		2,770		50.2	%
Residential mortgage		23,414		15,875		47.5	%		13,410		12,540		9,889		136.8	%
Total restructured loans	$	40,865	$	23,420		74.5	%	$	19,037	$	17,256	$	13,089		212.2	%
Restructured loans in nonaccrual loans (not included above)	$	48,215	$	9,862				$	9,393	$	5,353	$	1,357

Loans Past Due 30-89 Days

					Jun10 vs Mar10									Jun10 vs Jun09
	Jun 30, 2010		Mar 31, 2010		% Change			Dec 31, 2009		Sept 30, 2009		Jun 30, 2009		% Change
Commercial, financial & agricultural	$	40,415	$	51,042		(20.8	%)	$	64,369	$	43,159	$	47,515		(14.9	%)
Commercial real estate		50,721		69,836		(27.4	%)		81,975		50,029		66,288		(23.5	%)
Real estate — construction		23,368		13,805		69.3	%		56,559		39,184		35,166		(33.5	%)
Lease financing		628		98		540.8	%		823		873		18,833		(96.7	%)
Total commercial		115,132		134,781		(14.6	%)		203,726		133,245		167,802		(31.4	%)
Home equity		15,869		12,919		22.8	%		14,304		16,852		19,755		(19.7	%)
Installment		6,567		4,794		37.0	%		8,499		7,401		7,577		(13.3	%)
Total retail		22,436		17,713		26.7	%		22,803		24,253		27,332		(17.9	%)
Residential mortgage		11,110		12,786		(13.1	%)		14,226		17,994		14,189		(21.7	%)
Total loans past due 30-89 days	$	148,678	$	165,280		(10.0	%)	$	240,755	$	175,492	$	209,323		(29.0	%)

Potential Problem Loans

					Jun10 vs Mar10									Jun10 vs Jun09
	Jun 30, 2010		Mar 31, 2010		% Change			Dec 31, 2009		Sept 30, 2009		Jun 30, 2009		% Change
Commercial, financial & agricultural	$	482,686	$	505,903		(4.6	%)	$	563,836	$	481,034	$	428,550		12.6	%
Commercial real estate		553,316		565,969		(2.2	%)		598,137		588,013		462,103		19.7	%
Real estate — construction		203,560		262,572		(22.5	%)		391,105		462,029		481,467		(57.7	%)
Lease financing		6,784		5,158		31.5	%		8,367		9,572		24,934		(72.8	%)
Total commercial		1,246,346		1,339,602		(7.0	%)		1,561,445		1,540,648		1,397,054		(10.8	%)
Home equity		7,778		7,446		4.5	%		13,400		15,933		13,626		(42.9	%)
Installment		725		1,103		(34.3	%)		1,524		1,908		1,043		(30.5	%)
Total retail		8,503		8,549		(0.5	%)		14,924		17,841		14,669		(42.0	%)
Residential mortgage		17,304		19,591		(11.7	%)		19,150		15,414		14,448		19.8	%
Total potential problem loans	$	1,272,153	$	1,367,742		(7.0	%)	$	1,595,519	$	1,573,903	$	1,426,171		(10.8	%)

N/M — Not meaningful.

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

	Six months ended June 30, 2010							Six months ended June 30, 2009
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	8,256,254	$	175,869		4.29	%	$	10,083,205	$	228,424		4.57	%
Residential mortgage		2,008,087		50,251		5.02			2,553,037		68,231		5.36
Retail		3,395,044		88,626		5.25			3,639,111		101,428		5.61
Total loans		13,659,385		314,746		4.64			16,275,353		398,083		4.92
Investment securities		5,635,929		116,045		4.12			5,573,621		126,736		4.55
Other short-term investments		1,540,391		2,027		0.27			53,889		270		1.01
Investments and other		7,176,320		118,072		3.29			5,627,510		127,006		4.51
Total earning assets		20,835,705		432,818		4.17			21,902,863		525,089		4.82
Other assets, net		2,037,998							2,256,784
Total assets	$	22,873,703						$	24,159,647
Interest-bearing liabilities:
Savings deposits	$	886,045	$	541		0.12	%	$	882,533	$	681		0.16	%
Interest-bearing demand deposits		2,876,779		3,676		0.26			1,836,187		1,867		0.21
Money market deposits		6,321,344		16,999		0.54			5,178,848		23,977		0.93
Time deposits, excluding Brokered CDs		3,378,329		33,489		2.00			4,004,253		58,277		2.93
Total interest-bearing deposits, excluding Brokered CDs		13,462,497		54,705		0.82			11,901,821		84,802		1.44
Brokered CDs		637,055		2,400		0.76			904,650		6,790		1.51
Total interest-bearing deposits		14,099,552		57,105		0.82			12,806,471		91,592		1.44
Wholesale funding		2,588,696		34,698		2.69			5,484,245		52,387		1.92
Total interest-bearing liabilities		16,688,248		91,803		1.11			18,290,716		143,979		1.59
Noninterest-bearing demand deposits		3,000,264							2,769,773
Other liabilities		19,393							194,479
Stockholders’ equity		3,165,798							2,904,679
Total liabilities and stockholders’ equity	$	22,873,703						$	24,159,647
Net interest income and rate spread (1)			$	341,015		3.06	%			$	381,110		3.23	%
Net interest margin (1)						3.29	%						3.49	%
Taxable equivalent adjustment			$	12,000						$	12,694

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

	Three months ended June 30, 2010							Three months ended June 30, 2009
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	8,036,688	$	85,974		4.29	%	$	9,940,732	$	111,760		4.51	%
Residential mortgage		1,996,448		24,781		4.97			2,605,638		34,363		5.28
Retail		3,363,574		43,892		5.23			3,575,693		49,088		5.50
Total loans		13,396,710		154,647		4.63			16,122,063		195,211		4.85
Investment securities		5,365,745		55,009		4.10			5,675,359		60,715		4.28
Other short-term investments		1,836,182		1,188		0.26			49,845		134		1.08
Investments and other		7,201,927		56,197		3.12			5,725,204		60,849		4.25
Total earning assets		20,598,637		210,844		4.10			21,847,267		256,060		4.70
Other assets, net		2,000,058							2,217,300
Total assets	$	22,598,695						$	24,064,567
Interest-bearing liabilities:
Savings deposits	$	913,347	$	291		0.13	%	$	907,677	$	359		0.16	%
Interest-bearing demand deposits		2,833,530		1,898		0.27			1,970,889		1,038		0.21
Money market deposits		6,398,892		8,778		0.55			5,409,953		12,412		0.92
Time deposits, excluding Brokered CDs		3,305,825		16,035		1.95			4,015,230		28,220		2.82
Total interest-bearing deposits, excluding Brokered CDs		13,451,594		27,002		0.81			12,303,749		42,029		1.37
Brokered CDs		614,005		1,358		0.89			944,670		2,964		1.26
Total interest-bearing deposits		14,065,599		28,360		0.81			13,248,419		44,993		1.36
Wholesale funding		2,343,119		16,725		2.86			4,876,970		25,779		2.12
Total interest-bearing liabilities		16,408,718		45,085		1.10			18,125,389		70,772		1.57
Noninterest-bearing demand deposits		2,990,594							2,852,267
Other liabilities		13,088							177,211
Stockholders’ equity		3,186,295							2,909,700
Total liabilities and stockholders’ equity	$	22,598,695						$	24,064,567
Net interest income and rate spread (1)			$	165,759		3.00	%			$	185,288		3.13	%
Net interest margin (1)						3.22	%						3.40	%
Taxable equivalent adjustment			$	5,966						$	6,150

(1)	The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions.
(2)	Nonaccrual loans and loans held for sale have been included in the average balances.
(3)	Interest income includes net loan fees.

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

	Three months ended June 30, 2010							Three months ended March 31, 2010
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	8,036,688	$	85,974		4.29	%	$	8,478,259	$	89,895		4.29	%
Residential mortgage		1,996,448		24,781		4.97			2,019,855		25,471		5.06
Retail		3,363,574		43,892		5.23			3,426,864		44,733		5.27
Total loans		13,396,710		154,647		4.63			13,924,978		160,099		4.65
Investment securities		5,365,745		55,009		4.10			5,909,116		61,036		4.13
Other short-term investments		1,836,182		1,188		0.26			1,241,314		839		0.27
Investments and other		7,201,927		56,197		3.12			7,150,430		61,875		3.46
Total earning assets		20,598,637		210,844		4.10			21,075,408		221,974		4.24
Other assets, net		2,000,058							2,076,359
Total assets	$	22,598,695						$	23,151,767
Interest-bearing liabilities:
Savings deposits	$	913,347	$	291		0.13	%	$	858,440	$	250		0.12	%
Interest-bearing demand deposits		2,833,530		1,898		0.27			2,920,510		1,779		0.25
Money market deposits		6,398,892		8,778		0.55			6,242,934		8,221		0.53
Time deposits, excluding Brokered CDs		3,305,825		16,035		1.95			3,451,638		17,453		2.05
Total interest-bearing deposits, excluding Brokered CDs		13,451,594		27,002		0.81			13,473,522		27,703		0.83
Brokered CDs		614,005		1,358		0.89			660,361		1,042		0.64
Total interest-bearing deposits		14,065,599		28,360		0.81			14,133,883		28,745		0.82
Wholesale funding		2,343,119		16,725		2.86			2,837,001		17,973		2.55
Total interest-bearing liabilities		16,408,718		45,085		1.10			16,970,884		46,718		1.11
Noninterest-bearing demand deposits		2,990,594							3,010,041
Other liabilities		13,088							25,768
Stockholders’ equity		3,186,295							3,145,074
Total liabilities and stockholders’ equity	$	22,598,695						$	23,151,767
Net interest income and rate spread (1)			$	165,759		3.00	%			$	175,256		3.13	%
Net interest margin (1)						3.22	%						3.35	%
Taxable equivalent adjustment			$	5,966						$	6,034

(1)	The yield on tax exempt loans and securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions.
(2)	Nonaccrual loans and loans held for sale have been included in the average balances.
(3)	Interest income includes net loan fees.

Financial Summary and Comparison
Associated Banc-Corp

Period End Loan Composition

					Jun10 vs Mar10									Jun10 vs Jun09
	Jun 30, 2010		Mar 31, 2010		% Change			Dec 31, 2009		Sept 30, 2009		Jun 30, 2009		% Change
Commercial, financial & agricultural	$	2,969,662	$	3,099,265		(4.2	%)	$	3,450,632	$	3,613,457	$	3,904,925		(24.0	%)
Commercial real estate		3,576,716		3,699,139		(3.3	%)		3,817,066		3,902,340		3,737,749		(4.3	%)
Real estate — construction		925,697		1,281,868		(27.8	%)		1,397,493		1,611,857		1,963,919		(52.9	%)
Lease financing		82,375		87,568		(5.9	%)		95,851		102,130		110,262		(25.3	%)
Total commercial		7,554,450		8,167,840		(7.5	%)		8,761,042		9,229,784		9,716,855		(22.3	%)
Home equity		2,455,181		2,468,587		(0.5	%)		2,546,167		2,591,262		2,656,747		(7.6	%)
Installment		749,588		759,025		(1.2	%)		873,568		885,970		844,065		(11.2	%)
Total retail		3,204,769		3,227,612		(0.7	%)		3,419,735		3,477,232		3,500,812		(8.5	%)
Residential mortgage		1,842,697		1,903,869		(3.2	%)		1,947,848		2,058,581		2,092,440		(11.9	%)
Total loans	$	12,601,916	$	13,299,321		(5.2	%)	$	14,128,625	$	14,765,597	$	15,310,107		(17.7	%)

Period End Deposit Composition

					Jun10 vs Mar10									Jun10 vs Jun09
	Jun 30, 2010		Mar 31, 2010		% Change			Dec 31, 2009		Sept 30, 2009		Jun 30, 2009		% Change
Demand	$	2,932,599	$	3,023,247		(3.0	%)	$	3,274,973	$	2,984,486	$	2,846,570		3.0	%
Savings		913,146		897,740		1.7	%		845,509		871,539		898,527		1.6	%
Interest-bearing demand		2,745,541		2,939,390		(6.6	%)		3,099,358		2,395,429		2,242,800		22.4	%
Money market		6,554,559		6,522,901		0.5	%		5,806,661		5,724,418		5,410,498		21.1	%
Brokered CDs		571,626		742,119		(23.0	%)		141,968		653,090		930,582		(38.6	%)
Other time deposits		3,252,728		3,371,390		(3.5	%)		3,560,144		3,817,147		3,991,414		(18.5	%)
Total deposits	$	16,970,199	$	17,496,787		(3.0	%)	$	16,728,613	$	16,446,109	$	16,320,391		4.0	%
Network transaction deposits included above in interest-bearing demand and money market	$	2,698,204	$	2,641,648		2.1	%	$	1,926,539	$	1,767,271	$	1,605,722		68.0	%
Customer repo sweeps (a)	$	184,043	$	188,314		(2.3	%)	$	195,858	$	242,575	$	269,809		(31.8	%)

(a) Included within short-term borrowings.