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) January 22, 2009

Associated Banc-Corp

(Exact name of registrant as specified in its chapter)

Wisconsin	0-5519 and 001-31343	39-1098068
(State or other jurisdiction of incorporation)	(Commission	(IRS Employer Identification No.)
	File Number)

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))

TABLE OF CONTENTS

EX-99.1

Item 2.02. Results of Operations and Financial Condition.

On January 22, 2009, Associated Banc-Corp announced its earnings for the fourth quarter of 2008. 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 January 22, 2009, containing financial information for its fourth quarter ended December 31, 2008.

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: January 22, 2009	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 January 22, 2009, containing financial information for its fourth quarter ended December 31, 2008.

EX-99.1

Exhibit 99.1

NEWS RELEASE
For more information:
Investors: Joe Selner, Chief Financial Officer, 920-491-7120
Media: Janet L. Ford, VP of Public Relations, 414-207-5070

Associated earns $1.29 per common share for 2008, 11 cents in fourth quarter

• Net income to common shareholders of $165 million for 2008, and $14 million for fourth quarter

• Net interest income of $696 million, up 8% over 2007

• Net interest margin 3.65% for 2008 versus 3.60% for 2007, and 3.88% for fourth quarter

• Average loan growth up 6% over 2007, and up 2% annualized between fourth and third quarters

• Core fee-based income up 6% over 2007, and up 5% between the comparable fourth quarters

• Other-than-temporary valuation losses on investments of $53 million for 2008 (or $0.27 per share after tax), and $35 million for 4Q

• $525 million senior preferred stock investment by the U.S. Department of the Treasury on Nov. 21st

• Over $1.5 billion of credit originated, renewed or extended to new and existing customers since Nov. 21st

• Tangible capital ratio grew to 8.23% at Dec 31, compared to 6.50% at Sept 30 and 6.59% a year ago

GREEN BAY, Wis. — January 22, 2009 — Associated Banc-Corp (NASDAQ: ASBC) reported net income available to common shareholders of $165 million, or $1.29 per common share for 2008. Comparatively, net income was $286 million, or $2.23 per common share for 2007.

Net income available to common shareholders was $14 million, or $0.11 per common share for fourth quarter 2008, compared to $38 million ($0.30 per common share) for third quarter 2008 and $65 million ($0.51 per common share) for fourth quarter 2007.

Fourth quarter 2008 results included several nonrecurring items or other charges. Other-than-temporary valuation losses on investments were $35 million or $0.18 per common share after tax. In combination, a $7 million valuation reserve expense related to the fair value of mortgage servicing rights, a $3 million loss on an alleged customer fraud, and a $3 million write down on a foreclosed property reduced diluted earnings per common share by $0.07.

A single bond security is responsible for $31 million of the fourth quarter other-than-temporary marks, and has a remaining carrying value of $33 million at Dec. 31. The bond is comprised of large fixed-rate, 30-year amortizing mortgages with reasonably strong loan-to-value ratios and weighted average credit scores. In consideration of a significant fourth quarter decline in the market value of this bond and the business and economic environment, other-than-temporary impairment was recorded. Of the remaining $3.7 billion of mortgage-related securities held at year-end 2008, $3.6 billion are agency insured, and the vast majority of the remainder are seasoned. As a result, further exposure to other-than-temporary impairment is not expected to be significant.

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ASBC 4Q ’08 page 2 of 3

In November 2008, Associated sold $525 million of senior preferred stock, bearing a 5% dividend for the first 5 years and 9% thereafter, and related common stock warrants, to the U.S. Department of the Treasury under the federal government’s voluntary Capital Purchase Program. As a result, stockholders’ equity at December 31, 2008, included $508 million attributable to the senior preferred stock net of the preferred stock discount. The tangible capital ratio grew to 8.23% at year end 2008, compared to 6.50% at Sept. 30 and 6.59% a year ago. Finally, the senior preferred stock dividends and discount amortization that began in the fourth quarter reduced net income available to common shareholders by $3 million, or $0.03 per common share.

Since the infusion of capital over $1.5 billion of credit has been originated or committed to be extended to new and existing customers.

During the fourth quarter of 2008, Associated invested in guaranteed government agency mortgage-related securities in support of the mortgage markets. Thus, since Sept. 30, total assets and investment securities were each up $1.7 billion.

For fourth quarter 2008, net interest income was $192 million, $25 million (15 percent) higher than third quarter, with the net interest margin improving 40 basis to 3.88 percent.

Average loans were $16.3 billion for fourth quarter 2008, up $0.1 billion (2 percent annualized) over the third quarter of 2008, led by consumer-based loan growth, while commercial loan growth was offset by workouts and charge offs. Average deposits for fourth quarter were $14.4 billion, up $0.7 billion over third quarter 2008, primarily attributable to higher network transaction deposits and brokered CDs. At Dec. 31, deposits were $15.2 billion, up $0.9 billion over Sept. 30, with growth in nearly all categories, especially demand deposits (up $0.3 million or 11 percent) and money markets (up $0.3 million or 7 percent).

The provision for loan losses was $65 million and net charge offs were $46 million for fourth quarter 2008, compared to $55 million and $38 million, respectively, for third quarter 2008. During this quarter, nonperforming loans increased $36 million to $341 million at year-end 2008 (representing 2.09 percent of loans), compared to nonperforming loans of $163 million (or 1.05 percent of loans) at year-end 2007. The allowance for loan losses to total loans ratio increased to 1.63 percent at Dec. 31, 2008, compared to 1.51 percent at Sept. 30, 2008, and 1.29 percent at year-end 2007.

Core fee-based revenues for fourth quarter 2008 were $67 million, up $3 million or 5 percent over the fourth quarter of last year.

For the fourth quarter 2008 mortgage banking incurred a $1 million net loss, principally from a $7 million valuation charge related to mortgage servicing rights fair value. Comparatively, net mortgage banking income was $0.5 million (including a $1.4 million valuation charge) for fourth quarter 2007, and $4 million (including a favorable $1 million valuation recovery) for third quarter 2008. Mortgage applications increased 200% in December of 2008 over November, of which the majority will close in the first quarter of 2009.

Fourth quarter 2008 noninterest expense was $149 million, up $12 million or 9 percent over third quarter 2008. Previously noted items (severance, fraud matter and foreclosed property write down) accounted for $7 million of the increase, with the remainder largely due to elevated foreclosure/collection costs, increased legal and consultant expense, and higher weather-related occupancy costs. Compared to the fourth quarter last year, noninterest expense was up 6 percent. The efficiency ratio improved to 52.41 percent for 2008, compared to 53.92 percent for 2007, while for the fourth and third quarters of 2008, the efficiency ratio was 53.87 percent and 52.18 percent, respectively.

During the fourth quarter, Associated paid a dividend of 32 cents per common share, bringing the 2008 dividend per common share to $1.27, up 4 percent from 2007.

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ASBC 4Q ’08 page 3 of 3

Associated will host a conference call for investors and analysts at 3 p.m. Central Time (CT) today, January 22, 2009. The toll-free dial-in number for the live call is 800-762-8779. The number for international callers is 480-248-5081. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2008 earnings call, or for call ID number 3960724. A replay of the call will be available starting at 6 p.m. CT Jan. 22, 2009, through 12:00 midnight CT on February 22, 2009, by calling 800-406-7325 (toll-free) domestically or 303-590-3030 internationally. The call ID number, 3960724, is required to access the replay.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $24 billion. Associated has approximately 300 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.

Six pages of tables follow.

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Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp

	December 31,			December 31,			Dec08 vs Dec07
(in thousands)	2008			2007			% Change
Assets
Cash and due from banks	$	533,338		$	553,031			(3.6	%)
Interest-bearing deposits in other financial institutions		12,649			11,671			8.4	%
Federal funds sold and securities purchased under agreements to resell		24,741			22,447			10.2	%
Securities available for sale, at fair value		5,349,417			3,543,019			51.0	%
Loans held for sale		87,084			94,441			(7.8	%)
Loans		16,283,908			15,516,252			4.9	%
Allowance for loan losses		(265,378	)		(200,570	)		32.3	%
Loans, net		16,018,530			15,315,682			4.6	%
Premises and equipment, net		190,942			197,446			(3.3	%)
Goodwill		929,168			929,168			0.0	%
Other intangible assets, net		80,165			92,220			(13.1	%)
Other assets		966,033			832,958			16.0	%
Total assets	$	24,192,067		$	21,592,083			12.0	%
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,814,079		$	2,661,078			5.7	%
Interest-bearing deposits, excluding Brokered CDs		11,551,181			10,903,198			5.9	%
Brokered CDs		789,536			409,637			92.7	%
Total deposits		15,154,796			13,973,913			8.5	%
Short-term borrowings		3,703,936			3,226,787			14.8	%
Long-term funding		1,861,647			1,864,771			(0.2	%)
Accrued expenses and other liabilities		595,185			196,907			202.3	%
Total liabilities		21,315,564			19,262,378			10.7	%
Stockholders’ Equity
Preferred equity		508,008			—			N/M
Common stock		1,281			1,278			0.2	%
Surplus		1,073,218			1,040,694			3.1	%
Retained earnings		1,293,941			1,305,136			(0.9	%)
Accumulated other comprehensive loss		55			(2,498	)		(102.2	%)
Treasury stock		—			(14,905	)		(100.0	%)
Total stockholders’ equity		2,876,503			2,329,705			23.5	%
Total liabilities and stockholders’ equity	$	24,192,067		$	21,592,083			12.0	%

N/M = Not meaningful.

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

	For The Three Months Ended									For The Year Ended,
	December 31,						Quarter			December 31,					Year-to-Date
(in thousands, except per share amounts)	2008			2007			% Change			2008			2007		% Change
Interest Income
Interest and fees on loans	$	230,872		$	277,647			(16.8	%)	$	952,653		$	1,111,919		(14.3	%)
Interest and dividends on investment securities and deposits in other financial institutions:
Taxable		38,032			30,712			23.8	%		133,471			122,961		8.5	%
Tax-exempt		9,811			10,394			(5.6	%)		39,733			39,897		(0.4	%)
Interest on federal funds sold and securities purchased under agreements to resell		154			214			(28.0	%)		852			935		(8.9	%)
Total interest income		278,869			318,967			(12.6	%)		1,126,709			1,275,712		(11.7	%)
Interest Expense
Interest on deposits		56,402			98,678			(42.8	%)		263,306			403,353		(34.7	%)
Interest on short-term borrowings		10,090			32,470			(68.9	%)		86,584			134,624		(35.7	%)
Interest on long-term funding		20,595			23,600			(12.7	%)		80,671			93,922		(14.1	%)
Total interest expense		87,087			154,748			(43.7	%)		430,561			631,899		(31.9	%)
Net Interest Income		191,782			164,219			16.8	%		696,148			643,813		8.1	%
Provision for loan losses		65,044			15,501			319.6	%		202,058			34,509		485.5	%
Net interest income after provision for loan losses		126,738			148,718			(14.8	%)		494,090			609,304		(18.9	%)
Noninterest Income
Trust service fees		8,248			10,723			(23.1	%)		38,420			42,629		(9.9	%)
Service charges on deposit accounts		30,946			25,866			19.6	%		118,368			101,042		17.1	%
Card-based and other nondeposit fees		12,297			12,088			1.7	%		48,540			47,558		2.1	%
Retail commissions		15,541			14,917			4.2	%		62,588			61,645		1.5	%
Mortgage banking, net		(1,227	)		498			(346.4	%)		14,684			22,750		(35.5	%)
Bank owned life insurance income		4,711			4,240			11.1	%		19,804			17,419		13.7	%
Asset sale gains (losses), net		(1,054	)		11,062			(109.5	%)		(1,668	)		15,607		(110.7	%)
Investment securities gains (losses), net		(35,298	)		(815	)		N/M			(52,541	)		8,174		N/M
Other		6,910			7,094			(2.6	%)		37,455			27,957		34.0	%
Total noninterest income		41,074			85,673			(52.1	%)		285,650			344,781		(17.2	%)
Noninterest Expense
Personnel expense		77,374			76,487			1.2	%		309,478			303,428		2.0	%
Occupancy		13,134			11,784			11.5	%		50,461			46,659		8.1	%
Equipment		4,785			4,820			(0.7	%)		19,123			17,908		6.8	%
Data processing		7,446			8,189			(9.1	%)		30,451			31,690		(3.9	%)
Business development and advertising		6,047			5,482			10.3	%		21,400			19,785		8.2	%
Other intangible amortization		1,564			1,758			(11.0	%)		6,269			7,116		(11.9	%)
Legal and professional fees		5,311			3,358			58.2	%		14,566			11,841		23.0	%
Foreclosure/OREO expense		6,716			2,575			160.8	%		13,685			7,508		82.3	%
Other		26,373			25,649			2.8	%		92,027			88,956		3.5	%
Total noninterest expense		148,750			140,102			6.2	%		557,460			534,891		4.2	%
Income before income taxes		19,062			94,289			(79.8	%)		222,280			419,194		(47.0	%)
Income tax expense		2,203			29,498			(92.5	%)		53,828			133,442		(59.7	%)
Net Income		16,859			64,791			(74.0	%)		168,452			285,752		(41.0	%)
Preferred stock dividends and discount		3,250			—			N/M			3,250			—		N/M
Net Income Available to Common Equity	$	13,609		$	64,791			(79.0	%)	$	165,202		$	285,752		(42.2	%)
Earnings Per Common Share:
Basic	$	0.11		$	0.51			(78.4	%)	$	1.30		$	2.24		(42.0	%)
Diluted	$	0.11		$	0.51			(78.4	%)	$	1.29		$	2.23		(42.2	%)
Average Common Shares Outstanding:
Basic		127,717			127,095			0.5	%		127,501			127,408		0.1	%
Diluted		127,944			127,835			0.1	%		127,891			128,428		(0.4	%)

N/M = Not meaningful.

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

(in thousands, except per share amounts)	4Q08			3Q08			2Q08			1Q08			4Q07
Interest Income
Interest and fees on loans	$	230,872		$	229,001		$	237,727		$	255,053		$	277,647
Interest and dividends on investment securities and deposits in other financial institutions:
Taxable		38,032			32,209			31,878			31,352			30,712
Tax-exempt		9,811			9,887			9,776			10,259			10,394
Interest on federal funds sold and securities purchased under agreements to resell		154			279			213			206			214
Total interest income		278,869			271,376			279,594			296,870			318,967
Interest Expense
Interest on deposits		56,402			61,743			63,655			81,506			98,678
Interest on short-term borrowings		10,090			23,958			24,363			28,173			32,470
Interest on long-term funding		20,595			19,158			18,844			22,074			23,600
Total interest expense		87,087			104,859			106,862			131,753			154,748
Net Interest Income		191,782			166,517			172,732			165,117			164,219
Provision for loan losses		65,044			55,011			59,001			23,002			15,501
Net interest income after provision for loan losses		126,738			111,506			113,731			142,115			148,718
Noninterest Income
Trust service fees		8,248			10,020			10,078			10,074			10,723
Service charges on deposit accounts		30,946			33,609			30,129			23,684			25,866
Card-based and other nondeposit fees		12,297			12,517			12,301			11,425			12,088
Retail commissions		15,541			14,928			16,004			16,115			14,917
Total core fee-based revenue		67,032			71,074			68,512			61,298			63,594
Mortgage banking, net		(1,227	)		3,571			5,395			6,945			498
Bank owned life insurance income		4,711			5,235			4,997			4,861			4,240
Asset sale gains (losses), net		(1,054	)		573			(731	)		(456	)		11,062
Investment securities gains (losses), net		(35,298	)		(13,585	)		(718	)		(2,940	)		(815	)
Other		6,910			8,455			9,170			12,920			7,094
Total noninterest income		41,074			75,323			86,625			82,628			85,673
Noninterest Expense
Personnel expense		77,374			78,395			78,066			75,643			76,487
Occupancy		13,134			12,037			12,026			13,264			11,784
Equipment		4,785			5,088			4,653			4,597			4,820
Data processing		7,446			7,634			8,250			7,121			8,189
Business development and advertising		6,047			5,175			5,137			5,041			5,482
Other intangible amortization		1,564			1,568			1,568			1,569			1,758
Legal and professional fees		5,311			3,538			2,944			2,773			3,358
Foreclosure/OREO expense		6,716			2,427			2,573			1,969			2,575
Other		26,373			20,715			20,604			24,335			25,649
Total noninterest expense		148,750			136,577			135,821			136,312			140,102
Income before income taxes		19,062			50,252			64,535			88,431			94,289
Income tax expense		2,203			12,483			17,176			21,966			29,498
Net Income		16,859			37,769			47,359			66,465			64,791
Preferred stock dividends and discount		3,250			—			—			—			—
Net Income Available to Common Equity	$	13,609		$	37,769		$	47,359		$	66,465		$	64,791
Earnings Per Common Share:
Basic	$	0.11		$	0.30		$	0.37		$	0.52		$	0.51
Diluted	$	0.11		$	0.30		$	0.37		$	0.52		$	0.51
Average Common Shares Outstanding:
Basic		127,717			127,553			127,433			127,298			127,095
Diluted		127,944			127,711			127,964			127,825			127,835

Selected Quarterly Information
Associated Banc-Corp

(in thousands, except per share and full time
equivalent employee data)	YTD 2008			YTD 2007			4th Qtr 2008			3rd Qtr 2008			2nd Qtr 2008			1st Qtr 2008			4th Qtr 2007
Summary of Operations
Net interest income	$	696,148		$	643,813		$	191,782		$	166,517		$	172,732		$	165,117		$	164,219
Provision for loan losses		202,058			34,509			65,044			55,011			59,001			23,002			15,501
Asset sale gains (losses), net		(1,668	)		15,607			(1,054	)		573			(731	)		(456	)		11,062
Investment securities gains (losses), net		(52,541	)		8,174			(35,298	)		(13,585	)		(718	)		(2,940	)		(815	)
Noninterest income (excluding securities & asset gains)		339,859			321,000			77,426			88,335			88,074			86,024			75,426
Noninterest expense		557,460			534,891			148,750			136,577			135,821			136,312			140,102
Income before income taxes		222,280			419,194			19,062			50,252			64,535			88,431			94,289
Income taxes		53,828			133,442			2,203			12,483			17,176			21,966			29,498
Net income		168,452			285,752			16,859			37,769			47,359			66,465			64,791
Net income available to common equity		165,202			285,752			13,609			37,769			47,359			66,465			64,791
Taxable equivalent adjustment		27,711			27,259			6,902			6,899			6,814			7,096			7,119
Per Common Share Data
Net income:
Basic	$	1.30		$	2.24		$	0.11		$	0.30		$	0.37		$	0.52		$	0.51
Diluted		1.29			2.23			0.11			0.30			0.37			0.52			0.51
Dividends		1.27			1.22			0.32			0.32			0.32			0.31			0.31
Market Value:
High	$	29.23		$	35.43		$	24.21		$	25.92		$	29.23		$	28.86		$	30.49
Low		14.85			25.23			15.72			14.85			19.29			22.60			25.23
Close		20.93			27.09			20.93			19.95			19.29			26.63			27.09
Book value		18.54			18.32			18.54			18.52			18.46			18.71			18.32
Performance Ratios (annualized)
Earning assets yield		5.82	%		6.99	%		5.57	%		5.58	%		5.82	%		6.33	%		6.88	%
Interest-bearing liabilities rate		2.53			3.98			2.00			2.44			2.53			3.19			3.82
Net interest margin		3.65			3.60			3.88			3.48			3.65			3.58			3.62
Return on average assets		0.76			1.38			0.30			0.68			0.87			1.25			1.23
Return on average equity		6.95			12.68			2.58			6.38			8.01			11.34			11.23
Return on average tangible common equity (1)		11.81			21.91			3.83			10.83			13.51			19.26			19.50
Efficiency ratio (2)		52.41			53.92			53.87			52.18			50.75			52.79			56.78
Effective tax rate		24.22			31.83			11.56			24.84			26.61			24.84			31.28
Dividend payout ratio (3)		97.69			54.46			290.91			106.67			86.49			59.62			60.78
Average Balances
Assets	$	22,037,963		$	20,638,005		$	22,646,421		$	22,072,948		$	21,975,451		$	21,449,963		$	20,935,023
Earning assets		19,839,706			18,644,770			20,436,483			19,884,434			19,754,651			19,276,208			18,849,079
Interest-bearing liabilities		17,019,832			15,886,710			17,363,481			17,107,551			16,992,508			16,611,047			16,090,488
Loans		16,080,565			15,132,634			16,285,881			16,203,717			16,120,732			15,708,321			15,301,761
Deposits		13,812,072			13,741,803			14,395,626			13,710,297			13,493,511			13,643,559			13,760,991
Wholesale funding		5,654,373			4,520,916			5,496,248			5,876,051			5,950,699			5,293,797			4,750,471
Common stockholders’ equity		2,366,453			2,253,878			2,376,639			2,353,606			2,377,841			2,357,757			2,289,522
Stockholders’ equity		2,423,332			2,253,878			2,602,917			2,353,606			2,377,841			2,357,757			2,289,522
Common stockholders’ equity/assets		10.74	%		10.92	%		10.49	%		10.66	%		10.82	%		10.99	%		10.94	%
Stockholders’ equity / assets		11.00	%		10.92	%		11.49	%		10.66	%		10.82	%		10.99	%		10.94	%
At Period End
Assets							$	24,192,067		$	22,487,394		$	22,302,704		$	21,903,753		$	21,592,083
Loans								16,283,908			16,272,487			16,149,327			15,785,283			15,516,252
Allowance for loan losses								265,378			246,189			229,605			207,602			200,570
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								45,568			53,977			54,725			51,013			51,187
Other intangible assets								34,597			36,161			37,896			39,464			41,033
Deposits								15,154,796			14,245,667			13,378,734			13,882,174			13,973,913
Wholesale funding								5,565,583			5,667,737			6,359,811			5,388,923			5,091,558
Stockholders’ equity								2,876,503			2,364,247			2,353,882			2,382,418			2,329,705
Stockholders’ equity / assets								11.89	%		10.51	%		10.55	%		10.88	%		10.79	%
Tangible common equity / tangible assets (4)								6.05	%		6.50	%		6.50	%		6.75	%		6.59	%
Tangible equity/tangible assets (5)								8.23	%		6.50	%		6.50	%		6.75	%		6.59	%
Shares outstanding, end of period								127,762			127,646			127,537			127,365			127,160
Selected trend information
Average full time equivalent employees								5,109			5,141			5,179			5,093			5,095
Trust assets under management, at market value							$	5,100,000		$	5,600,000		$	5,900,000		$	6,000,000		$	6,100,000
Mortgage loans originated for sale during period								247,465			217,993			431,757			516,780			333,331
Mortgage portfolio serviced for others								6,606,000			6,596,000			6,584,000			6,472,000			6,403,000
Mortgage servicing rights, net / Portfolio serviced for others								0.69	%		0.82	%		0.83	%		0.79	%		0.80	%

(1)	Return on average equity = Net income divided by average equity.
(2)	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.
(3)	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.
(4)	Ratio is based upon basic earnings per common share.
(5)	Tangible common equity to tangible assets = Common stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.
(6)	Tangible equity to tangible assets = Stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.

Financial Summary and Comparison
Associated Banc-Corp

	Three months ended									Year ended
	December 31,									December 31,
(in thousands)	2008			2007			% Change			2008			2007			% Change
Allowance for Loan Losses
Beginning balance	$	246,189		$	200,560			22.8	%	$	200,570		$	203,481			(1.4	%)
Balance related to acquisition		—			—			N/M			—			2,991			N/M
Provision for loan losses		65,044			15,501			319.6	%		202,058			34,509			485.5	%
Charge offs		(47,750	)		(17,156	)		178.3	%		(145,826	)		(47,249	)		208.6	%
Recoveries		1,895			1,665			13.8	%		8,576			6,838			25.4	%
Net charge offs		(45,855	)		(15,491	)		196.0	%		(137,250	)		(40,411	)		239.6	%
Ending balance	$	265,378		$	200,570			32.3	%	$	265,378		$	200,570			32.3	%

Credit Quality

							Dec08 vs Sept08												Dec08 vs Dec07
	Dec 31, 2008			Sept 30, 2008			% Change			Jun 30, 2008			Mar 31, 2008			Dec 31,2007			% Change
Nonaccrual loans	$	326,857		$	290,039			12.7	%	$	277,100		$	197,498		$	152,528			114.3	%
Loans 90 or more days past due and still accruing		13,811			14,631			(5.6	%)		11,762			9,959			10,118			36.5	%
Total nonperforming loans		340,668			304,670			11.8	%		288,862			207,457			162,646			109.5	%
Other real estate owned (OREO)		48,710			46,473			4.8	%		46,579			26,798			26,489			83.9	%
Total nonperforming assets	$	389,378		$	351,143			10.9	%	$	335,441		$	234,255		$	189,135			105.9	%
Provision for loan losses		65,044			55,011			18.2	%		59,001			23,002			15,501			319.6	%
Net charge offs		45,855			38,427			19.3	%		36,998			15,970			15,491			196.0	%
Allowance for loan losses / loans		1.63	%		1.51	%					1.42	%		1.32	%		1.29	%
Allowance for loan losses / nonperforming loans		77.90			80.81						79.49			100.07			123.32
Nonperforming loans / total loans		2.09			1.87						1.79			1.31			1.05
Nonperforming assets / total loans plus OREO		2.38			2.15						2.07			1.48			1.22
Nonperforming assets / total assets		1.61			1.56						1.50			1.07			0.88
Net charge offs / average loans (annualized)		1.12			0.94						0.92			0.41			0.40
Year-to-date net charge offs / average loans		0.85			0.76						0.67			0.41			0.27
Nonperforming loans by type:
Commercial, financial & agricultural	$	104,664		$	85,995			21.7	%	$	78,731		$	54,919		$	32,610			221.0	%
Commercial real estate		62,423			52,875			18.1	%		42,280			37,367			35,049			78.1	%
Real estate — construction		90,048			98,205			(8.3	%)		110,717			56,456			39,837			126.0	%
Lease financing		187			83			125.3	%		522			1,316			1,323			(85.9	%)
Total commercial		257,322			237,158			8.5	%		232,250			150,058			108,819			136.5	%
Home equity		31,035			25,372			22.3	%		23,555			18,488			16,209			91.5	%
Installment		7,155			6,035			18.6	%		5,184			4,184			3,881			84.4	%
Total retail		38,190			31,407			21.6	%		28,739			22,672			20,090			90.1	%
Residential mortgage		45,156			36,105			25.1	%		27,873			34,727			33,737			33.8	%
Total nonperforming loans	$	340,668		$	304,670			11.8	%	$	288,862		$	207,457		$	162,646			109.5	%

Period End Loan Composition

					Dec08 vs Sept08									Dec08 vs Dec07
	Dec 31, 2008		Sept 30, 2008		% Change			Jun 30, 2008		Mar 31, 2008		Dec 31,2007		% Change
Commercial, financial & agricultural	$	4,388,691	$	4,343,208		1.0	%	$	4,423,192	$	4,458,639	$	4,281,091		2.5	%
Commercial real estate		3,566,551		3,534,791		0.9	%		3,583,877		3,585,779		3,635,365		(1.9	%)
Real estate — construction		2,260,888		2,363,116		(4.3	%)		2,351,401		2,273,125		2,260,766		0.0	%
Lease financing		122,113		125,907		(3.0	%)		124,661		118,613		108,794		12.2	%
Total commercial		10,338,243		10,367,022		(0.3	%)		10,483,131		10,436,156		10,286,016		0.5	%
Home equity		2,883,317		2,892,952		(0.3	%)		2,757,684		2,387,223		2,269,122		27.1	%
Installment		827,303		842,741		(1.8	%)		826,895		842,564		841,136		(1.6	%)
Total retail		3,710,620		3,735,693		(0.7	%)		3,584,579		3,229,787		3,110,258		19.3	%
Residential mortgage		2,235,045		2,169,772		3.0	%		2,081,617		2,119,340		2,119,978		5.4	%
Total loans	$	16,283,908	$	16,272,487		0.1	%	$	16,149,327	$	15,785,283	$	15,516,252		4.9	%

Period End Deposit Composition

					Dec08 vs Sept08									Dec08 vs Dec07
	Dec 31, 2008		Sept 30, 2008		% Change			Jun 30, 2008		Mar 31, 2008		Dec 31,2007		% Change
Demand	$	2,814,079	$	2,545,779		10.5	%	$	2,602,026	$	2,516,265	$	2,661,078		5.7	%
Savings		841,129		888,731		(5.4	%)		921,000		891,806		853,618		(1.5	%)
Interest-bearing demand		1,796,405		1,667,640		7.7	%		1,697,910		1,788,404		1,947,551		(7.8	%)
Money market		4,926,088		4,608,686		6.9	%		3,917,505		3,972,080		3,923,063		25.6	%
Brokered CDs		789,536		579,607		36.2	%		398,423		731,398		409,637		92.7	%
Other time deposits		3,987,559		3,955,224		0.8	%		3,841,870		3,982,221		4,178,966		(4.6	%)
Total deposits	$	15,154,796	$	14,245,667		6.4	%	$	13,378,734	$	13,882,174	$	13,973,913		8.5	%
Network transaction deposits included above in interest-bearing demand and money market	$	1,530,675	$	1,356,616		12.8	%	$	620,440	$	610,351	$	664,982		130.2	%
Customer repo sweeps (a)	$	505,788	$	657,032		(23.0	%)	$	667,720	$	789,218	$	844,414		(40.1	%)

(a)	Included within short-term borrowings.
N/M = Not meaningful.

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

	Year ended December 31, 2008							Year ended December 31, 2007
	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	$	10,387,727	$	600,079		5.78	%	$	9,807,964	$	730,712		7.45	%
Residential mortgage		2,200,145		129,077		5.87			2,292,606		141,127		6.16
Retail		3,492,693		227,368		6.51			3,032,064		243,401		8.03
Total loans		16,080,565		956,524		5.95			15,132,634		1,115,240		7.37
Investments and other		3,759,141		197,896		5.26			3,512,136		187,731		5.35
Total earning assets		19,839,706		1,154,420		5.82			18,644,770		1,302,971		6.99
Other assets, net		2,198,257							1,993,235
Total assets	$	22,037,963						$	20,638,005
Interest-bearing liabilities:
Savings deposits	$	890,811	$	4,021		0.45	%	$	913,143	$	4,494		0.49	%
Interest-bearing demand deposits		1,752,991		15,061		0.86			1,844,274		35,585		1.93
Money market deposits		4,231,678		79,057		1.87			3,752,199		138,924		3.70
Time deposits, excluding Brokered CDs		3,957,174		148,294		3.75			4,340,473		197,262		4.54
Total interest-bearing deposits, excluding Brokered CDs		10,832,654		246,433		2.27			10,850,089		376,265		3.47
Brokered CDs		532,805		16,873		3.17			515,705		27,088		5.25
Total interest-bearing deposits		11,365,459		263,306		2.32			11,365,794		403,353		3.55
Wholesale funding		5,654,373		167,255		2.96			4,520,916		228,546		5.06
Total interest-bearing liabilities		17,019,832		430,561		2.53			15,886,710		631,899		3.98
Noninterest-bearing demand deposits		2,446,613							2,376,009
Other liabilities		148,186							121,408
Stockholders’ equity		2,423,332							2,253,878
Total liabilities and stockholders’ equity	$	22,037,963						$	20,638,005
Net interest income and rate spread (1)			$	723,859		3.29	%			$	671,072		3.01	%
Net interest margin (1)						3.65	%						3.60	%
Taxable equivalent adjustment			$	27,711						$	27,259

	Three months ended December 31, 2008							Three months ended December 31, 2007
	Average		Interest		Average			Average		Interest		Average
	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	10,333,624	$	144,181		5.55	%	$	9,983,063	$	182,789		7.27	%
Residential mortgage		2,218,470		31,300		5.63			2,206,003		34,283		6.19
Retail		3,733,787		56,406		6.02			3,112,695		61,459		7.86
Total loans		16,285,881		231,887		5.67			15,301,761		278,531		7.23
Investments and other		4,150,602		53,884		5.19			3,547,318		47,555		5.36
Total earning assets		20,436,483		285,771		5.57			18,849,079		326,086		6.88
Other assets, net		2,209,938							2,085,944
Total assets	$	22,646,421						$	20,935,023
Interest-bearing liabilities:
Savings deposits	$	880,155	$	903		0.41	%	$	898,780	$	1,259		0.56	%
Interest-bearing demand deposits		1,637,383		1,930		0.47			1,816,676		8,353		1.82
Money market deposits		4,889,011		17,480		1.42			3,772,661		32,746		3.44
Time deposits, excluding Brokered CDs		3,951,360		32,464		3.27			4,317,752		49,506		4.55
Total interest-bearing deposits, excluding Brokered CDs		11,357,909		52,777		1.85			10,805,869		91,864		3.37
Brokered CDs		509,324		3,625		2.83			534,148		6,814		5.06
Total interest-bearing deposits		11,867,233		56,402		1.89			11,340,017		98,678		3.45
Wholesale funding		5,496,248		30,685		2.22			4,750,471		56,070		4.69
Total interest-bearing liabilities		17,363,481		87,087		2.00			16,090,488		154,748		3.82
Noninterest-bearing demand deposits		2,528,393							2,420,974
Other liabilities		151,630							134,039
Stockholders’ equity		2,602,917							2,289,522
Total liabilities and stockholders’ equity	$	22,646,421						$	20,935,023
Net interest income and rate spread (1)			$	198,684		3.57	%			$	171,338		3.06	%
Net interest margin (1)						3.88	%						3.62	%
Taxable equivalent adjustment			$	6,902						$	7,119

(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.