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 19, 2012

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):

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

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

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

¨ 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 January 19, 2012, Associated Banc-Corp announced its earnings for the fourth quarter of 2011 and year ended December 31, 2011. A copy of the registrant’s press release containing this information and the slide presentation discussed on the conference call for investors and analysts on January 19, 2012, are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report on Form 8-K and are incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, 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 exhibits are furnished as part of this Report on Form 8-K:

99.1	Press release of the registrant dated January 19, 2012, containing financial information for its fourth quarter and year ended December 31, 2011.
99.2	Slide presentation discussed on the conference call for investors and analysts on January 19, 2012.

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 19, 2012	By:	/s/    JOSEPH B. SELNER
		Joseph B. Selner
		Chief Financial Officer

ASSOCIATED BANC-CORP

Exhibit Index to Current Report on Form 8-K

Exhibit Number
99.1	Press release of the registrant dated January 19, 2012, containing financial information for its fourth quarter and year ended December 31, 2011.
99.2	Slide presentation discussed on the conference call for investors and analysts on January 19, 2012.

EX-99.1

Exhibit 99.1

NEWS RELEASE Investor Contact: Tim Sedabres, Vice President, Finance 920-491-7059   Media Contact: Autumn Latimore, Senior Vice President, Public Relations Director 414-278-1860

Associated Reports Fourth Quarter Earnings of $0.23 per share

Full year net income to common shareholders of $115 million, or $0.66 per share

GREEN BAY, Wis. –– January 19, 2012 –– Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $40 million, or $0.23 per common share, for the quarter ended December 31, 2011. This compares to net income to common shareholders of $34 million, or $0.20 per common share, for the quarter ended September 30, 2011, and net income to common shareholders of $7 million, or $0.04 per common share, for the quarter ended December 31, 2010.

For the year ended December 31, 2011, the Company reported net income to common shareholders of $115 million, or $0.66 per common share. This compares to a net loss to common shareholders of $30 million, or $0.18 per common share for the year ended December 31, 2010.

“We are pleased with the results and accomplishments achieved over the past year. We have been serving our customers for 150 years and remain committed to meeting their needs. We believe that results from the fourth quarter reflect both our core franchise strength and our ability to deliver value to customers and shareholders,” said President and CEO Philip B. Flynn.

HIGHLIGHTS

• Quarterly net income to common shareholders improved by 17%, or $6 million from the prior quarter

• Full year 2011 net income to common shareholders of $115 million

• Loan balances increased by a net $528 million, or 4%, during the fourth quarter to $14.0 billion; loans grew in each major portfolio during the fourth quarter, including:

• Commercial and business lending grew $386 million

• Commercial real estate lending increased $112 million

• Residential mortgage loans grew $111 million

• Loans increased by $1.4 billion, or 11%, during 2011

• Credit metrics continued to improve during the fourth quarter; nonaccrual loans declined $47 million, or 12%, from the prior quarter to $357 million, the lowest level in eight quarters, while net charge offs were down 25% from the prior quarter

• Nonaccruals have declined 38% from $574 million at the fourth quarter of 2010

• Net charge offs of $151 million for full year 2011 declined 69% from full year 2010

– More –

ASSOCIATED BANC-CORP REPORTS FOURTH QUARTER 2011 RESULTS PAGE 2

FOURTH QUARTER 2011 FINANCIAL RESULTS

Loans

At December 31, 2011, the Company’s loan portfolio was $14.0 billion, up $528 million, or 4%, from $13.5 billion at September 30, 2011, and up $1.4 billion, or 11%, from $12.6 billion a year ago. Total commercial loans grew $498 million on a linked-quarter basis, with strong growth coming from both the commercial and industrial (C&I) and commercial real estate (CRE) portfolios. The retail loan and residential mortgage portfolios grew by a net $29 million from the third quarter, with a $111 million increase in residential mortgage partially offset by a decrease in the home equity loan book of $67 million.

Deposits

Total deposits of $15.1 billion at the end of the fourth quarter were up 2% from $14.8 billion at the end of the third quarter. The net deposit growth during the quarter included a $217 million, or 6% increase, in demand deposits and a $226 million, or 11% increase, in interest-bearing demand deposits.

Net Interest Income and Net Interest Margin

Fourth quarter net interest income was $152 million. Consistent with the Company’s strategy of funding loan growth primarily through securities run-off, net interest income from loans grew quarter over quarter while interest income from securities continued to contract. The net interest margin for the fourth quarter was 3.21%, a decline of 2 basis points from the prior quarter. Yields on earning assets compressed by 7 basis points quarter over quarter, while the cost of interest-bearing liabilities declined by 5 basis points; contributing to the modest reduction in overall net interest margin.

Noninterest Income and Expense

Noninterest income for the quarter was $74 million, up $2 million, or 3%, from the third quarter. Card-based and other nondeposit revenues declined by $4 million from the prior quarter, primarily due to the expected phased-in impact of the Durbin amendment. Mortgage banking income increased by $5 million from the third quarter, driven by higher mortgage production, lower valuation expense on mortgage servicing rights, and a $3 million gain on sale of $94 million of portfolio mortgages.

Personnel and occupancy expenses remained relatively flat from the prior quarter. However, total noninterest expense for the quarter ended December 31, 2011 was $175 million, up $13 million, or 8%, from the third quarter, primarily attributable to a $10 million change in losses other than loans. The largest contributor to losses other than loans related to additional litigation reserves established for the previously disclosed settlement of a legal matter. Other drivers of the increase in noninterest expense include increased data processing expense and increased business development and advertising expenses. Offsetting the net income impact of the losses other than loans was a reversal of certain prior years’ tax reserves as a result of the expiration of the statute of limitations.

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ASSOCIATED BANC-CORP REPORTS FOURTH QUARTER 2011 RESULTS PAGE 3

In December, the Company announced plans to consolidate 21 retail branches during the first and second quarters of 2012 as part of its footprint enhancement strategy. All of the impacted branches are within close proximity to other remaining Associated locations, in most cases within two miles, and the Company remains committed to continuing to invest throughout its three-state footprint. The consolidations are expected to increase the deposits per branch in the remaining locations while allowing the Company to service the impacted markets more efficiently.

Key Credit Metrics

The Company reported another quarter of improving credit metrics with nonaccrual loans down 12% to $357 million from $403 million at September 30, 2011, and down 38% from $574 million at December 31, 2010. Net charge offs were $23 million for the fourth quarter, down 25% from $30 million for the third quarter of 2011, and down 79% from $108 million for the fourth quarter of 2010. Fourth quarter provision for loan losses was $1 million, down from $4 million for the third quarter of 2011, and down from $63 million for the fourth quarter of 2010. The Company’s allowance for loan losses was $378 million, representing an allowance equal to 2.70% of loans, and covered over 105% of nonaccrual loans at December 31, 2011.

Capital Ratios

The Company’s capital position remains very strong, with a Tier 1 common equity ratio of 12.24% at December 31, 2011, compared to 12.26% a year ago. The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks, and also exceed the proposed Basel III guidelines.

“We are pleased with the solid results of this quarter and with our progress throughout the year,” Flynn continued. “We believe that our recent success is a result of our customer centric focus and of the investments we have made to strengthen our core businesses. Despite the challenging environment, we remain optimistic and are committed to building shareholder value through our long-term strategy for growth at Associated.”

– More –

ASSOCIATED BANC-CORP REPORTS FOURTH QUARTER 2011 RESULTS PAGE 4

FOURTH QUARTER 2011 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 19, 2012. Interested parties can listen to the call live on the Internet through the investor relations section of the company’s website, http://investor.associatedbank.com/ or by dialing 877-348-9354. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 253-237-1160. Participants should ask the operator for the Associated Banc-Corp fourth quarter 2011 earnings call, or conference ID number 37612937.

An audio archive of the webcast will be available on the company’s website for one month following the call. A replay of the call will be available starting at 7:00 p.m. CT on January 19, 2012 through 11:00 p.m. CT on February 19, 2012 by dialing 855-859-2056 and entering the conference ID number 37612937. The replay number for international callers is 404-537-3406.

ABOUT ASSOCIATED BANC-CORP

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

FORWARD LOOKING STATEMENTS

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

# # #

Consolidated Balance Sheets (Unaudited)

Associated Banc-Corp

(in thousands)	December 31, 2011			September 30, 2011			Seql Qtr $ Change			June 30, 2011			March 31, 2011			December 31, 2010			Comp Qtr $ Change
Assets
Cash and due from banks	$	454,958		$	410,644		$	44,314		$	314,682		$	299,040		$	319,487		$	135,471
Interest-bearing deposits in other financial institutions		154,562			250,648			(96,086	)		777,675			498,094			546,125			(391,563	)
Federal funds sold and securities purchased under agreements to resell		7,075			4,180			2,895			2,400			2,015			2,550			4,525
Securities available for sale, at fair value		4,937,483			5,453,816			(516,333	)		5,742,034			5,883,541			6,101,341			(1,163,858	)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		191,188			191,128			60			191,075			191,017			190,968			220
Loans held for sale		249,195			201,142			48,053			84,323			85,493			144,808			104,387
Loans		14,031,071			13,503,507			527,564			13,089,589			12,655,322			12,616,735			1,414,336
Allowance for loan losses		(378,151	)		(399,723	)		21,572			(425,961	)		(454,461	)		(476,813	)		98,662
Loans, net		13,652,920			13,103,784			549,136			12,663,628			12,200,861			12,139,922			1,512,998
Premises and equipment, net		223,736			208,301			15,435			192,506			186,329			190,533			33,203
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		67,574			67,970			(396	)		74,872			85,200			88,044			(20,470	)
Other assets		1,056,358			1,081,868			(25,510	)		1,076,112			1,112,807			1,132,650			(76,292	)
Total assets	$	21,924,217		$	21,902,649		$	21,568		$	22,048,475		$	21,473,565		$	21,785,596			138,621
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	3,928,792		$	3,711,570		$	217,222		$	3,218,722		$	3,285,604		$	3,684,965			243,827
Interest-bearing deposits, excl Brokered CDs		10,958,915			10,867,013			91,902			10,530,658			10,413,994			11,097,788			(138,873	)
Brokered CDs		202,948			203,827			(879	)		316,670			324,045			442,640			(239,692	)
Total deposits		15,090,655			14,782,410			308,245			14,066,050			14,023,643			15,225,393			(134,738	)
Short-term funding		2,514,485			2,531,776			(17,291	)		3,255,670			2,547,805			1,747,382			767,103
Long-term funding		1,177,071			1,477,408			(300,337	)		1,484,174			1,484,177			1,413,605			(236,534	)
Accrued expenses and other liabilities		276,212			260,436			15,776			243,433			223,226			240,425			35,787
Total liabilities		19,058,423			19,052,030			6,393			19,049,327			18,278,851			18,626,805			431,618
Stockholders’ Equity
Preferred equity		63,272			63,272			—			258,051			515,238			514,388			(451,116	)
Common stock		1,746			1,746			—			1,745			1,744			1,739			7
Surplus		1,586,401			1,585,208			1,193			1,581,594			1,576,903			1,573,372			13,029
Retained earnings		1,148,773			1,111,080			37,693			1,079,076			1,055,344			1,041,666			107,107
Accumulated other comprehensive income		65,602			89,313			(23,711	)		79,345			45,731			27,626			37,976
Treasury stock		—			—			—			(663	)		(246	)		—			—
Total stockholders’ equity		2,865,794			2,850,619			15,175			2,999,148			3,194,714			3,158,791			(292,997	)
Total liabilities and stockholders’ equity	$	21,924,217		$	21,902,649		$	21,568		$	22,048,475		$	21,473,565		$	21,785,596		$	138,621

Consolidated Statements of Income (Unaudited)

Associated Banc-Corp

	For The Three Months Ended December 31,						Quarter						For The Year Ended, December 31,						Year-to-Date
(in thousands, except per share amounts)	2011			2010			$ Change			% Change			2011			2010			$ Change			% Change
Interest Income
Interest and fees on loans	$	149,832		$	146,444		$	3,388			2.3	%	$	582,739		$	608,487		$	(25,748	)		(4.2	%)
Interest and dividends on investment securities:
Taxable		22,855			32,420			(9,565	)		(29.5	%)		123,371			155,031			(31,660	)		(20.4	%)
Tax-exempt		7,344			8,150			(806	)		(9.9	%)		29,937			33,915			(3,978	)		(11.7	%)
Other interest		1,251			2,078			(827	)		(39.8	%)		5,575			8,693			(3,118	)		(35.9	%)
Total interest income		181,282			189,092			(7,810	)		(4.1	%)		741,622			806,126			(64,504	)		(8.0	%)
Interest Expense
Interest on deposits		14,954			23,039			(8,085	)		(35.1	%)		65,748			106,023			(40,275	)		(38.0	%)
Interest on short-term borrowings		2,156			2,288			(132	)		(5.8	%)		12,411			7,983			4,428			55.5	%
Interest on long-term funding		12,347			12,905			(558	)		(4.3	%)		50,632			58,341			(7,709	)		(13.2	%)
Total interest expense		29,457			38,232			(8,775	)		(23.0	%)		128,791			172,347			(43,556	)		(25.3	%)
Net Interest Income		151,825			150,860			965			0.6	%		612,831			633,779			(20,948	)		(3.3	%)
Provision for loan losses		1,000			63,000			(62,000	)		(98.4	%)		52,000			390,010			(338,010	)		(86.7	%)
Net interest income after provision for loan losses		150,825			87,860			62,965			71.7	%		560,831			243,769			317,062			130.1	%
Noninterest Income
Trust service fees		9,511			9,518			(7	)		(0.1	%)		39,145			37,853			1,292			3.4	%
Service charges on deposit accounts		17,783			20,390			(2,607	)		(12.8	%)		75,908			96,740			(20,832	)		(21.5	%)
Card-based and other nondeposit fees		11,269			15,842			(4,573	)		(28.9	%)		57,905			59,299			(1,394	)		(2.4	%)
Retail commissions		14,881			14,441			440			3.0	%		62,784			61,256			1,528			2.5	%
Total core fee-based revenue		53,444			60,191			(6,747	)		(11.2	%)		235,742			255,148			(19,406	)		(7.6	%)
Mortgage banking, net		9,677			13,229			(3,552	)		(26.9	%)		12,723			33,136			(20,413	)		(61.6	%)
Capital market fees, net		3,950			5,187			(1,237	)		(23.8	%)		8,711			6,072			2,639			43.5	%
Bank owned life insurance income		3,820			4,509			(689	)		(15.3	%)		14,896			15,761			(865	)		(5.5	%)
Asset sale gains (losses), net		525			514			11			2.1	%		(2,849	)		(2,004	)		(845	)		42.2	%
Investment securities gains (losses), net		(310	)		(1,883	)		1,573			(83.5	%)		(1,112	)		24,917			(26,029	)		(104.5	%)
Other		2,750			2,950			(200	)		(6.8	%)		14,358			12,493			1,865			14.9	%
Total noninterest income		73,856			84,697			(10,841	)		(12.8	%)		282,469			345,523			(63,054	)		(18.2	%)
Noninterest Expense
Personnel expense		89,785			83,912			5,873			7.0	%		358,295			323,249			35,046			10.8	%
Occupancy		13,796			12,899			897			7.0	%		55,939			49,937			6,002			12.0	%
Equipment		5,286			4,899			387			7.9	%		19,873			18,371			1,502			8.2	%
Data processing		9,080			7,047			2,033			28.8	%		32,475			29,714			2,761			9.3	%
Business development and advertising		6,904			4,870			2,034			41.8	%		23,038			18,385			4,653			25.3	%
Other intangible amortization		1,179			1,206			(27	)		(2.2	%)		4,714			4,919			(205	)		(4.2	%)
Loan expense		3,469			2,735			734			26.8	%		12,008			9,965			2,043			20.5	%
Legal and professional fees		4,651			5,353			(702	)		(13.1	%)		18,205			20,439			(2,234	)		(10.9	%)
Losses other than loans		11,890			7,470			4,420			59.2	%		17,921			14,793			3,128			21.1	%
Foreclosure/OREO expense		7,493			9,860			(2,367	)		(24.0	%)		30,743			33,844			(3,101	)		(9.2	%)
FDIC expense		6,136			11,095			(4,959	)		(44.7	%)		28,484			46,377			(17,893	)		(38.6	%)
Other		14,982			15,497			(515	)		(3.3	%)		58,178			60,327			(2,149	)		(3.6	%)
Total noninterest expense		174,651			166,843			7,808			4.7	%		659,873			630,320			29,553			4.7	%
Income (Loss) before income taxes		50,030			5,714			44,316			N/M			183,427			(41,028	)		224,455			N/M
Income tax expense (benefit)		8,905			(8,294	)		17,199			N/M			43,728			(40,172	)		83,900			N/M
Net income (loss)		41,125			14,008			27,117			193.6	%	$	139,699		$	(856	)	$	140,555			N/M
Preferred stock dividends and discount		1,300			7,400			(6,100	)		(82.4	%)		24,830			29,531			(4,701	)		(15.9	%)
Net income (loss) available to common equity	$	39,825		$	6,608		$	33,217			N/M		$	114,869		$	(30,387	)	$	145,256			N/M
Earnings (Loss) Per Common Share:
Basic	$	0.23		$	0.04		$	0.19			N/M		$	0.66		$	(0.18	)	$	0.84			N/M
Diluted	$	0.23		$	0.04		$	0.19			N/M		$	0.66		$	(0.18	)	$	0.84			N/M
Average Common Shares Outstanding:
Basic		173,523			173,068			455			0.3	%		173,370			171,230			2,140			1.3	%
Diluted		173,523			173,072			451			0.3	%		173,372			171,230			2,142			1.3	%

N/M = Not meaningful.

Consolidated Statements of Income (Unaudited) - Quarterly Trend

Associated Banc-Corp

							Sequential Qtr															Comparable Qtr
(in thousands, except per share amounts)	4Q11			3Q11			$ Change			% Change			2Q11			1Q11			4Q10			$ Change			% Change
Interest Income
Interest and fees on loans	$	149,832		$	145,778		$	4,054			2.8	%	$	144,358		$	142,771		$	146,444		$	3,388			2.3	%
Interest and dividends on investment securities:
Taxable		22,855			30,513			(7,658	)		(25.1	%)		35,351			34,652			32,420			(9,565	)		(29.5	%)
Tax-exempt		7,344			7,376			(32	)		(0.4	%)		7,504			7,713			8,150			(806	)		(9.9	%)
Other interest		1,251			1,428			(177	)		(12.4	%)		1,438			1,458			2,078			(827	)		(39.8	%)
Total interest income		181,282			185,095			(3,813	)		(2.1	%)		188,651			186,594			189,092			(7,810	)		(4.1	%)
Interest Expense
Interest on deposits		14,954			15,644			(690	)		(4.4	%)		16,901			18,249			23,039			(8,085	)		(35.1	%)
Interest on short-term borrowings		2,156			3,039			(883	)		(29.1	%)		3,637			3,579			2,288			(132	)		(5.8	%)
Interest on long-term funding		12,347			13,252			(905	)		(6.8	%)		13,990			11,043			12,905			(558	)		(4.3	%)
Total interest expense		29,457			31,935			(2,478	)		(7.8	%)		34,528			32,871			38,232			(8,775	)		(23.0	%)
Net Interest Income		151,825			153,160			(1,335	)		(0.9	%)		154,123			153,723			150,860			965			0.6	%
Provision for loan losses		1,000			4,000			(3,000	)		(75.0	%)		16,000			31,000			63,000			(62,000	)		(98.4	%)
Net interest income after provision for loan losses		150,825			149,160			1,665			1.1	%		138,123			122,723			87,860			62,965			71.7	%
Noninterest Income
Trust service fees		9,511			9,791			(280	)		(2.9	%)		10,012			9,831			9,518			(7	)		(0.1	%)
Service charges on deposit accounts		17,783			19,949			(2,166	)		(10.9	%)		19,112			19,064			20,390			(2,607	)		(12.8	%)
Card-based and other nondeposit fees		11,269			15,291			(4,022	)		(26.3	%)		15,747			15,598			15,842			(4,573	)		(28.9	%)
Retail commissions		14,881			15,047			(166	)		(1.1	%)		16,475			16,381			14,441			440			3.0	%
Total core fee-based revenue		53,444			60,078			(6,634	)		(11.0	%)		61,346			60,874			60,191			(6,747	)		(11.2	%)
Mortgage banking, net		9,677			4,521			5,156			114.0	%		(3,320	)		1,845			13,229			(3,552	)		(26.9	%)
Capital market fees, net		3,950			3,273			677			20.7	%		(890	)		2,378			5,187			(1,237	)		(23.8	%)
Bank owned life insurance income		3,820			3,990			(170	)		(4.3	%)		3,500			3,586			4,509			(689	)		(15.3	%)
Asset sale gains (losses), net		525			(1,179	)		1,704			(144.5	%)		(209	)		(1,986	)		514			11			2.1	%
Investment securities losses, net		(310	)		(744	)		434			(58.3	%)		(36	)		(22	)		(1,883	)		1,573			(83.5	%)
Other		2,750			1,737			1,013			58.3	%		4,364			5,507			2,950			(200	)		(6.8	%)
Total noninterest income		73,856			71,676			2,180			3.0	%		64,755			72,182			84,697			(10,841	)		(12.8	%)
Noninterest Expense
Personnel expense		89,785			90,377			(592	)		(0.7	%)		89,203			88,930			83,912			5,873			7.0	%
Occupancy		13,796			14,205			(409	)		(2.9	%)		12,663			15,275			12,899			897			7.0	%
Equipment		5,286			4,851			435			9.0	%		4,969			4,767			4,899			387			7.9	%
Data processing		9,080			7,887			1,193			15.1	%		7,974			7,534			7,047			2,033			28.8	%
Business development and advertising		6,904			5,539			1,365			24.6	%		5,652			4,943			4,870			2,034			41.8	%
Other intangible amortization		1,179			1,179			—			0.0	%		1,178			1,178			1,206			(27	)		(2.2	%)
Loan expense		3,469			2,600			869			33.4	%		2,983			2,956			2,735			734			26.8	%
Legal and professional fees		4,651			4,289			362			8.4	%		4,783			4,482			5,353			(702	)		(13.1	%)
Losses other than loans		11,890			1,659			10,231			N/M			(1,925	)		6,297			7,470			4,420			59.2	%
Foreclosure/OREO expense		7,493			7,662			(169	)		(2.2	%)		9,527			6,061			9,860			(2,367	)		(24.0	%)
FDIC expense		6,136			6,906			(770	)		(11.1	%)		7,198			8,244			11,095			(4,959	)		(44.7	%)
Other		14,982			15,006			(24	)		(0.2	%)		14,681			13,509			15,497			(515	)		(3.3	%)
Total noninterest expense		174,651			162,160			12,491			7.7	%		158,886			164,176			166,843			7,808			4.7	%
Income before income taxes		50,030			58,676			(8,646	)		(14.7	%)		43,992			30,729			5,714			44,316			N/M
Income tax expense (benefit)		8,905			17,337			(8,432	)		(48.6	%)		9,610			7,876			(8,294	)		17,199			N/M
Net income		41,125			41,339			(214	)		(0.5	%)		34,382			22,853			14,008			27,117			193.6	%
Preferred stock dividends and discount		1,300			7,305			(6,005	)		(82.2	%)		8,812			7,413			7,400			(6,100	)		(82.4	%)
Net income available to common equity	$	39,825		$	34,034		$	5,791			17.0	%	$	25,570		$	15,440		$	6,608		$	33,217			N/M
Earnings Per Common Share:
Basic	$	0.23		$	0.20		$	0.03			15.0	%	$	0.15		$	0.09		$	0.04		$	0.19			N/M
Diluted	$	0.23		$	0.20		$	0.03			15.0	%	$	0.15		$	0.09		$	0.04		$	0.19			N/M
Average Common Shares Outstanding:
Basic		173,523			173,418			105			0.1	%		173,323			173,213			173,068			455			0.3	%
Diluted		173,523			173,418			105			0.1	%		173,327			173,217			173,072			451			0.3	%

N/M = Not meaningful.

Selected Quarterly Information

Associated Banc-Corp

(in thousands, except per share and full time equivalent employee data)	YTD 2011			YTD 2010			4th Qtr 2011			3rd Qtr 2011			2nd Qtr 2011			1st Qtr 2011			4th Qtr 2010
Summary of Operations
Net interest income	$	612,831		$	633,779		$	151,825		$	153,160		$	154,123		$	153,723		$	150,860
Provision for loan losses		52,000			390,010			1,000			4,000			16,000			31,000			63,000
Asset sale gains (losses), net		(2,849	)		(2,004	)		525			(1,179	)		(209	)		(1,986	)		514
Investment securities gains (losses), net		(1,112	)		24,917			(310	)		(744	)		(36	)		(22	)		(1,883	)
Noninterest income (excluding securities & asset gains)		286,430			322,610			73,641			73,599			65,000			74,190			86,066
Noninterest expense		659,873			630,320			174,651			162,160			158,886			164,176			166,843
Income (loss) before income taxes		183,427			(41,028	)		50,030			58,676			43,992			30,729			5,714
Income tax expense (benefit)		43,728			(40,172	)		8,905			17,337			9,610			7,876			(8,294	)
Net income (loss)		139,699			(856	)		41,125			41,339			34,382			22,853			14,008
Net income (loss) available to common equity		114,869			(30,387	)		39,825			34,034			25,570			15,440			6,608
Taxable equivalent adjustment		21,374			23,635			5,307			5,295			5,332			5,440			5,721
Per Common Share Data
Net income (loss):
Basic	$	0.66		$	(0.18	)	$	0.23		$	0.20		$	0.15		$	0.09		$	0.04
Diluted		0.66			(0.18	)		0.23			0.20			0.15			0.09			0.04
Dividends		0.04			0.04			0.01			0.01			0.01			0.01			0.01
Market Value:
High	$	15.36		$	16.10		$	11.78		$	14.17		$	15.02		$	15.36		$	15.49
Low		8.95			11.48			9.15			8.95			13.06			13.83			12.57
Close		11.17			15.15			11.17			9.30			13.90			14.85			15.15
Book value		16.15			15.28			16.15			16.07			15.81			15.46			15.28
Tangible book value		10.68			9.77			10.68			10.59			10.33			9.97			9.77
Performance Ratios (annualized)
Earning assets yield		3.92	%		4.03	%		3.81	%		3.88	%		4.00	%		4.01	%		3.89	%
Interest-bearing liabilities rate		0.85			1.06			0.78			0.83			0.91			0.89			0.98
Net interest margin		3.26			3.20			3.21			3.23			3.29			3.32			3.13
Return on average assets		0.65			(0.00	)		0.75			0.75			0.64			0.43			0.25
Return on average equity		4.66			(0.03	)		5.71			5.49			4.63			2.92			1.74
Return on average Tier 1 common equity (1)		6.71			(1.95	)		8.96			7.83			6.07			3.76			1.59
Efficiency ratio (2)		71.68			64.32			75.68			69.88			70.79			70.36			68.76
Effective tax rate (benefit)		23.84			97.91			17.80			29.55			21.84			25.63			(145.13	)
Dividend payout ratio (3)		6.06			22.22			4.35			5.00			6.67			11.11			25.00
Average Balances
Assets	$	21,588,620		$	22,625,065		$	21,755,870		$	21,729,187		$	21,526,155		$	21,336,858		$	22,034,041
Earning assets		19,442,263			20,568,495			19,506,627			19,530,007			19,431,292			19,297,866			19,950,784
Interest-bearing liabilities		15,120,824			16,304,220			15,095,689			15,215,517			15,261,514			14,907,465			15,476,002
Loans (4)		13,278,848			13,186,712			14,043,585			13,376,928			13,004,904			12,673,844			12,587,702
Deposits		14,401,127			16,946,301			14,893,469			14,405,311			14,052,689			14,245,614			16,452,473
Short and long-term funding		4,100,825			2,452,610			3,857,252			4,227,319			4,434,500			3,883,122			2,311,016
Common stockholders’ equity		2,730,643			2,670,953			2,792,823			2,765,023			2,704,909			2,657,956			2,681,813
Stockholders’ equity		2,997,290			3,183,572			2,856,095			2,987,178			2,976,840			3,172,636			3,195,657
Common stockholders’ equity / assets		12.65	%		11.81	%		12.84	%		12.72	%		12.57	%		12.46	%		12.17	%
Stockholders’ equity / assets		13.88	%		14.07	%		13.13	%		13.75	%		13.83	%		14.87	%		14.50	%
At Period End
Assets							$	21,924,217		$	21,902,649		$	22,048,475		$	21,473,565		$	21,785,596
Loans								14,031,071			13,503,507			13,089,589			12,655,322			12,616,735
Allowance for loan losses								378,151			399,723			425,961			454,461			476,813
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								48,152			47,370			53,093			62,243			63,909
Other intangible assets								19,422			20,600			21,779			22,957			24,135
Deposits								15,090,655			14,782,410			14,066,050			14,023,643			15,225,393
Short and long-term funding								3,691,556			4,009,184			4,739,844			4,031,982			3,160,987
Stockholders’ equity								2,865,794			2,850,619			2,999,148			3,194,714			3,158,791
Stockholders’ equity / assets								13.07	%		13.01	%		13.60	%		14.88	%		14.50	%
Tangible common equity / tangible assets (5)								8.84	%		8.77	%		8.49	%		8.42	%		8.12	%
Tangible equity/tangible assets (6)								9.14	%		9.07	%		9.71	%		10.93	%		10.59	%
Tier 1 common equity / risk-weighted assets (7)								12.24	%		12.44	%		12.61	%		12.65	%		12.26	%
Tier 1 leverage ratio								9.81	%		9.62	%		10.46	%		11.65	%		11.19	%
Tier 1 risk-based capital ratio								14.08	%		14.35	%		16.03	%		18.08	%		17.58	%
Total risk-based capital ratio								15.53	%		15.81	%		17.50	%		19.56	%		19.05	%
Shares outstanding, end of period								173,575			173,474			173,374			173,274			173,112
Selected trend information
Average full time equivalent employees								5,056			4,980			4,977			4,929			4,865
Trust assets under management, at market value							$	5,600,000		$	5,300,000		$	5,700,000		$	5,900,000		$	5,700,000
Mortgage loans originated for sale during period								843,614			470,530			250,880			290,013			629,978
Mortgage portfolio serviced for others								7,321,000			7,281,000			7,367,000			7,476,000			7,453,000
Mortgage servicing rights, net / Portfolio serviced for others								0.66	%		0.65	%		0.72	%		0.83	%		0.86	%

(1) Return on average Tier 1 common equity = Net income available to common equity divided by average Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities. This is a non-GAAP financial measure.

(2) Efficiency ratio = Noninterest expense divided by sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains, net, and asset sales gains, net. This is a non-GAAP financial measure.

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

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

(5) Tangible common equity to tangible assets = Common stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.

(6) Tangible equity to tangible assets = Stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.

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

Selected Asset Quality Information

Associated Banc-Corp

(in thousands)	Dec 31, 2011			Sep 30, 2011			Dec11 vs Sep11 % Change			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010			Dec11 vs Dec10 % Change
Allowance for Loan Losses
Beginning balance	$	399,723		$	425,961			(6.2	%)	$	454,461		$	476,813		$	522,018			(23.4	%)
Provision for loan losses		1,000			4,000			(75.0	%)		16,000			31,000			63,000			(98.4	%)
Charge offs		(34,056	)		(38,155	)		(10.7	%)		(52,365	)		(65,156	)		(118,368	)		(71.2	%)
Recoveries		11,484			7,917			45.1	%		7,865			11,804			10,163			13.0	%
Net charge offs		(22,572	)		(30,238	)		(25.4	%)		(44,500	)		(53,352	)		(108,205	)		(79.1	%)
Ending balance	$	378,151		$	399,723			(5.4	%)	$	425,961		$	454,461		$	476,813			(20.7	%)
Reserve for losses on unfunded commitments	$	14,700		$	14,900			(1.3	%)	$	14,900		$	17,800		$	17,374			(15.4	%)
	Dec 31, 2011			Sep 30, 2011			Dec11 vs Sep11 % Change			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010			Dec11 vs Dec10 % Change
Net Charge Offs
Commercial and industrial	$	231		$	3,741			(93.8	%)	$	14,026		$	4,314		$	27,041			(99.1	%)
Commercial real estate - owner occupied		539			134			302.2	%		4,436			1,867			11,778			(95.4	%)
Lease financing		19			(1,889	)		(101.0	%)		60			28			9,159			(99.8	%)
Commercial and business lending		789			1,986			(60.3	%)		18,522			6,209			47,978			(98.4	%)
Commercial real estate - investor		2,394			10,472			(77.1	%)		4,941			6,006			8,325			(71.2	%)
Real estate - construction		7,088			5,646			25.5	%		6,031			11,936			31,879			(77.8	%)
Commercial real estate lending		9,482			16,118			(41.2	%)		10,972			17,942			40,204			(76.4	%)
Total commercial		10,271			18,104			(43.3	%)		29,494			24,151			88,182			(88.4	%)
Home equity		8,113			8,736			(7.1	%)		8,251			14,322			14,541			(44.2	%)
Installment(1)		452			764			(40.8	%)		664			12,670			2,369			(80.9	%)
Total retail		8,565			9,500			(9.8	%)		8,915			26,992			16,910			(49.3	%)
Residential mortgage		3,736			2,634			41.8	%		6,091			2,209			3,113			20.0	%
Total net charge offs	$	22,572		$	30,238			(25.4	%)	$	44,500		$	53,352		$	108,205			(79.1	%)
	Dec 31, 2011			Sep 30, 2011						Jun 30, 2011			Mar 31, 2011			Dec 31, 2010
Net Charge Offs to Average Loans (in basis points) *
Commercial and industrial		3			46						180			60			364
Commercial real estate - owner occupied		20			5						174			72			438
Lease financing		14			(1,396	)					44			20			5,051
Commercial and business lending		7			18						177			63			466
Commercial real estate - investor		38			169						83			104			139
Real estate - construction		502			407						454			888			1,820
Commercial real estate lending		122			213						151			252			518
Total commercial		53			98						166			142			488
Home equity		127			134						127			227			231
Installment		32			52						42			759			131
Total retail		110			119						111			338			209
Residential mortgage		46			36						92			35			56
Total net charge offs		64			90						137			171			341
	Dec 31, 2011			Sep 30, 2011			Dec11 vs Sep11 % Change			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010			Dec11 vs Dec10 % Change
Credit Quality
Nonaccrual loans	$	356,772		$	403,392			(11.6	%)	$	467,611		$	488,321		$	574,356			(37.9	%)
Other real estate owned (OREO)		41,571			42,076			(1.2	%)		45,712			49,019			44,330			(6.2	%)
Total nonperforming assets	$	398,343		$	445,468			(10.6	%)	$	513,323		$	537,340		$	618,686			(35.6	%)
Loans 90 or more days past due and still accruing		4,925			1,220			303.7	%		12,123			9,380			3,418			44.1	%
Restructured loans (accruing)		113,164			113,083			0.1	%		100,343			88,193			79,935			41.6	%
Allowance for loan losses / loans		2.70	%		2.96	%					3.25	%		3.59	%		3.78	%
Allowance for loan losses / nonaccrual loans		105.99			99.09						91.09			93.07			83.02
Nonaccrual loans / total loans		2.54			2.99						3.57			3.86			4.55
Nonperforming assets / total loans plus OREO		2.83			3.29						3.91			4.23			4.89
Nonperforming assets / total assets		1.82			2.03						2.33			2.50			2.84
Net charge offs / average loans (annualized)		0.64			0.90						1.37			1.71			3.41
Year-to-date net charge offs / average loans		1.13			1.32						1.54			1.71			3.69
Nonaccrual loans by type:
Commercial and industrial	$	56,075		$	61,256			(8.5	%)	$	71,183		$	76,780		$	99,845			(43.8	%)
Commercial real estate - owner occupied		35,718			47,202			(24.3	%)		59,725			57,168			59,317			(39.8	%)
Lease financing		10,644			11,667			(8.8	%)		12,898			15,270			17,080			(37.7	%)
Commercial and business lending		102,437			120,125			(14.7	%)		143,806			149,218			176,242			(41.9	%)
Commercial real estate - investor		99,352			97,691			1.7	%		133,770			129,379			164,610			(39.6	%)
Real estate - construction		41,806			72,300			(42.2	%)		72,782			84,903			94,929			(56.0	%)
Commercial real estate lending		141,158			169,991			(17.0	%)		206,552			214,282			259,539			(45.6	%)
Total commercial		243,595			290,116			(16.0	%)		350,358			363,500			435,781			(44.1	%)
Home equity		46,907			46,119			1.7	%		46,777			49,618			51,712			(9.3	%)
Installment		2,715			3,195			(15.0	%)		3,724			4,949			10,544			(74.3	%)
Total retail		49,622			49,314			0.6	%		50,501			54,567			62,256			(20.3	%)
Residential mortgage		63,555			63,962			(0.6	%)		66,752			70,254			76,319			(16.7	%)
Total nonaccrual loans	$	356,772		$	403,392			(11.6	%)	$	467,611		$	488,321		$	574,356			(37.9	%)

* Annualized.

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

Selected Asset Quality Information (continued)

Associated Banc-Corp

(in thousands)	Dec 31, 2011		Sep 30, 2011		Dec11 vs Sep11 % Change			Jun 30, 2011		Mar 31, 2011		Dec 31, 2010		Dec11 vs Dec10 % Change
Restructured loans (accruing)
Commercial and industrial	$	22,552	$	23,020		(2.0	%)	$	22,760	$	16,047	$	9,980		126.0	%
Commercial real estate - owner occupied		8,138		5,439		49.6	%		1,579		382		382		N/M
Lease financing		—		—		0.0	%		—		—		—		0.0	%
Commercial and business lending		30,690		28,459		7.8	%		24,339		16,429		10,362		196.2	%
Commercial real estate - investor		43,417		43,453		(0.1	%)		34,612		33,784		15,230		185.1	%
Real estate - construction		10,977		10,707		2.5	%		10,706		7,859		22,532		(51.3	%)
Commercial real estate lending		54,394		54,160		0.4	%		45,318		41,643		37,762		44.0	%
Total commercial		85,084		82,619		3.0	%		69,657		58,072		48,124		76.8	%
Home equity		8,950		10,556		(15.2	%)		11,453		11,630		11,741		(23.8	%)
Installment		1,015		965		5.2	%		1,017		1,149		692		46.7	%
Total retail		9,965		11,521		(13.5	%)		12,470		12,779		12,433		(19.9	%)
Residential mortgage		18,115		18,943		(4.4	%)		18,216		17,342		19,378		(6.5	%)
Total restructured loans (accruing)	$	113,164	$	113,083		0.1	%	$	100,343	$	88,193	$	79,935		41.6	%
Restructured loans in nonaccrual loans (not included above)	$	87,493	$	80,063		9.3	%	$	71,084	$	49,352	$	35,939		143.4	%
	Dec 31, 2011		Sep 30, 2011		Dec11 vs Sep11 % Change			Jun 30, 2011		Mar 31, 2011		Dec 31, 2010		Dec11 vs Dec10 % Change
Loans Past Due 30-89 Days
Commercial and industrial	$	8,743	$	6,255		39.8	%	$	7,581	$	36,205	$	33,013		(73.5	%)
Commercial real estate - owner occupied		7,092		29,409		(75.9	%)		33,753		21,820		9,295		(23.7	%)
Lease financing		104		507		(79.5	%)		79		135		132		(21.2	%)
Commercial and business lending		15,939		36,171		(55.9	%)		41,413		58,160		42,440		(62.4	%)
Commercial real estate - investor		4,970		70,136		(92.9	%)		27,487		18,717		37,191		(86.6	%)
Real estate - construction		996		5,493		(81.9	%)		13,217		3,410		8,016		(87.6	%)
Commercial real estate lending		5,966		75,629		(92.1	%)		40,704		22,127		45,207		(86.8	%)
Total commercial		21,905		111,800		(80.4	%)		82,117		80,287		87,647		(75.0	%)
Home equity		12,189		18,165		(32.9	%)		14,818		14,808		13,886		(12.2	%)
Installment		2,592		1,956		32.5	%		3,851		2,714		9,624		(73.1	%)
Total retail		14,781		20,121		(26.5	%)		18,669		17,522		23,510		(37.1	%)
Residential mortgage		7,224		12,114		(40.4	%)		12,573		7,940		8,722		(17.2	%)
Total loans past due 30-89 days	$	43,910	$	144,035		(69.5	%)	$	113,359	$	105,749	$	119,879		(63.4	%)
	Dec 31, 2011		Sep 30, 2011		Dec11 vs Sep11 % Change			Jun 30, 2011		Mar 31, 2011		Dec 31, 2010		Dec11 vs Dec10 % Change
Potential Problem Loans
Commercial and industrial	$	153,306	$	207,351		(26.1	%)	$	229,407	$	348,949	$	354,284		(56.7	%)
Commercial real estate - owner occupied		136,366		140,406		(2.9	%)		145,622		172,662		193,819		(29.6	%)
Lease financing		158		507		(68.8	%)		1,399		1,705		2,617		(94.0	%)
Commercial and business lending		289,830		348,264		(16.8	%)		376,428		523,316		550,720		(47.4	%)
Commercial real estate - investor		230,206		252,331		(8.8	%)		236,434		292,714		298,959		(23.0	%)
Real estate - construction		27,649		37,155		(25.6	%)		63,186		70,824		91,618		(69.8	%)
Commercial real estate lending		257,855		289,486		(10.9	%)		299,620		363,538		390,577		(34.0	%)
Total commercial		547,685		637,750		(14.1	%)		676,048		886,854		941,297		(41.8	%)
Home equity		5,451		4,975		9.6	%		4,515		4,737		3,057		78.3	%
Installment		233		272		(14.3	%)		216		230		703		(66.9	%)
Total retail		5,684		5,247		8.3	%		4,731		4,967		3,760		51.2	%
Residential mortgage		13,037		16,550		(21.2	%)		18,575		19,710		18,672		(30.2	%)
Total potential problem loans	$	566,406	$	659,547		(14.1	%)	$	699,354	$	911,531	$	963,729		(41.2	%)

N/M - Not meaningful.

Net Interest Income Analysis - Taxable Equivalent Basis

Associated Banc-Corp

	Year ended December 31, 2011							Year ended December 31, 2010
(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	$	7,274,728	$	315,151		4.33	%	$	7,790,554	$	339,595		4.36	%
Residential mortgage		2,819,702		116,207		4.12			2,059,156		99,163		4.82
Retail		3,184,418		154,793		4.86			3,337,002		173,015		5.18
Total loans		13,278,848		586,151		4.41			13,186,712		611,773		4.64
Investment securities		5,497,297		171,270		3.12			5,439,729		209,295		3.85
Other short-term investments		666,118		5,575		0.84			1,942,054		8,693		0.45
Investments and other		6,163,415		176,845		2.87			7,381,783		217,988		2.95
Total earning assets		19,442,263		762,996		3.92			20,568,495		829,761		4.03
Other assets, net		2,146,357							2,056,570
Total assets	$	21,588,620						$	22,625,065
Interest-bearing liabilities:
Savings deposits	$	987,198	$	1,091		0.11	%	$	898,019	$	1,176		0.13	%
Interest-bearing demand deposits		1,947,506		3,429		0.18			2,780,525		6,314		0.23
Money market deposits		5,147,437		16,385		0.32			6,374,071		33,417		0.52
Time deposits, excluding Brokered CDs		2,647,632		41,257		1.56			3,251,667		60,280		1.85
Total interest-bearing deposits, excluding Brokered CDs		10,729,773		62,162		0.58			13,304,282		101,187		0.76
Brokered CDs		290,226		3,586		1.24			547,328		4,836		0.88
Total interest-bearing deposits		11,019,999		65,748		0.60			13,851,610		106,023		0.77
Short and long-term funding		4,100,825		63,043		1.54			2,452,610		66,324		2.70
Total interest-bearing liabilities		15,120,824		128,791		0.85			16,304,220		172,347		1.06
Noninterest-bearing demand deposits		3,381,128							3,094,691
Other liabilities		89,378							42,582
Stockholders’ equity		2,997,290							3,183,572
Total liabilities and stockholders’ equity	$	21,588,620						$	22,625,065
Net interest income and rate spread (1)			$	634,205		3.07	%			$	657,414		2.97	%
Net interest margin (1)						3.26	%						3.20	%
Taxable equivalent adjustment			$	21,374						$	23,635
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
	Three months ended December 31, 2011							Three months ended December 31, 2010
(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	$	7,728,803	$	82,424		4.23	%	$	7,161,913	$	81,120		4.50	%
Residential mortgage		3,216,466		31,643		3.93			2,214,502		24,887		4.49
Retail		3,098,316		36,666		4.71			3,211,287		41,267		5.11
Total loans		14,043,585		150,733		4.27			12,587,702		147,274		4.65
Investment securities		5,020,429		34,605		2.76			5,598,564		45,461		3.25
Other short-term investments		442,613		1,251		1.13			1,764,518		2,078		0.48
Investments and other		5,463,042		35,856		2.63			7,363,082		47,539		2.58
Total earning assets		19,506,627		186,589		3.81			19,950,784		194,813		3.89
Other assets, net		2,249,243							2,083,257
Total assets	$	21,755,870						$	22,034,041
Interest-bearing liabilities:
Savings deposits	$	1,017,271	$	230		0.09	%	$	908,625	$	319		0.14	%
Interest-bearing demand deposits		2,152,518		1,115		0.21			2,733,728		1,345		0.20
Money market deposits		5,308,174		3,649		0.27			6,027,526		7,202		0.47
Time deposits, excluding Brokered CDs		2,557,120		9,256		1.44			3,057,052		12,986		1.69
Total interest-bearing deposits, excluding Brokered CDs		11,035,083		14,250		0.51			12,726,931		21,852		0.68
Brokered CDs		203,354		704		1.37			438,055		1,187		1.07
Total interest-bearing deposits		11,238,437		14,954		0.53			13,164,986		23,039		0.69
Short and long-term funding		3,857,252		14,503		1.50			2,311,016		15,193		2.62
Total interest-bearing liabilities		15,095,689		29,457		0.78			15,476,002		38,232		0.98
Noninterest-bearing demand deposits		3,655,032							3,287,487
Other liabilities		149,054							74,895
Stockholders’ equity		2,856,095							3,195,657
Total liabilities and stockholders’ equity	$	21,755,870						$	22,034,041
Net interest income and rate spread (1)			$	157,132		3.03	%			$	156,581		2.91	%
Net interest margin (1)						3.21	%						3.13	%
Taxable equivalent adjustment			$	5,307						$	5,721

(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 December 31, 2011							Three months ended September 30, 2011
(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	$	7,728,803	$	82,424		4.23	%	$	7,337,527	$	79,161		4.28	%
Residential mortgage		3,216,466		31,643		3.93			2,869,445		29,385		4.09
Retail		3,098,316		36,666		4.71			3,169,956		38,102		4.78
Total loans		14,043,585		150,733		4.27			13,376,928		146,648		4.36
Investment securities		5,020,429		34,605		2.76			5,430,677		42,314		3.12
Other short-term investments		442,613		1,251		1.13			722,402		1,428		0.79
Investments and other		5,463,042		35,856		2.63			6,153,079		43,742		2.84
Total earning assets		19,506,627		186,589		3.81			19,530,007		190,390		3.88
Other assets, net		2,249,243							2,199,180
Total assets	$	21,755,870						$	21,729,187
Interest-bearing liabilities:
Savings deposits	$	1,017,271	$	230		0.09	%	$	1,013,333	$	289		0.11	%
Interest-bearing demand deposits		2,152,518		1,115		0.21			2,056,082		945		0.18
Money market deposits		5,308,174		3,649		0.27			5,092,120		3,841		0.30
Time deposits, excluding Brokered CDs		2,557,120		9,256		1.44			2,565,898		9,718		1.50
Total interest-bearing deposits, excluding Brokered CDs		11,035,083		14,250		0.51			10,727,433		14,793		0.55
Brokered CDs		203,354		704		1.37			260,765		851		1.29
Total interest-bearing deposits		11,238,437		14,954		0.53			10,988,198		15,644		0.56
Short and long-term funding		3,857,252		14,503		1.50			4,227,319		16,291		1.54
Total interest-bearing liabilities		15,095,689		29,457		0.78			15,215,517		31,935		0.83
Noninterest-bearing demand deposits		3,655,032							3,417,113
Other liabilities		149,054							109,379
Stockholders’ equity		2,856,095							2,987,178
Total liabilities and stockholders’ equity	$	21,755,870						$	21,729,187
Net interest income and rate spread (1)			$	157,132		3.03	%			$	158,455		3.05	%
Net interest margin (1)						3.21	%						3.23	%
Taxable equivalent adjustment			$	5,307						$	5,295

(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

	Dec 31, 2011		Sept 30, 2011		Dec11 vs Sep11 % Change			Jun 30, 2011		Mar 31, 2011		Dec 31, 2010		Dec11 vs Dec10 % Change
Period End Loan Composition
Commercial and industrial	$	3,724,736	$	3,360,502		10.8	%	$	3,202,301	$	2,972,651	$	3,049,752		22.1	%
Commercial real estate - owner occupied		1,086,829		1,068,616		1.7	%		1,030,060		1,027,826		1,049,798		3.5	%
Lease financing		58,194		54,849		6.1	%		54,001		56,458		60,254		(3.4	%)
Commercial and business lending		4,869,759		4,483,967		8.6	%		4,286,362		4,056,935		4,159,804		17.1	%
Commercial real estate - investor		2,563,767		2,481,411		3.3	%		2,393,626		2,354,655		2,339,415		9.6	%
Real estate - construction		584,046		554,024		5.4	%		533,804		525,236		553,069		5.6	%
Commercial real estate lending		3,147,813		3,035,435		3.7	%		2,927,430		2,879,891		2,892,484		8.8	%
Total commercial		8,017,572		7,519,402		6.6	%		7,213,792		6,936,826		7,052,288		13.7	%
Home equity		2,504,704		2,571,404		(2.6	%)		2,594,029		2,576,736		2,523,057		(0.7	%)
Installment		557,782		572,243		(2.5	%)		589,714		605,767		695,383		(19.8	%)
Total retail		3,062,486		3,143,647		(2.6	%)		3,183,743		3,182,503		3,218,440		(4.8	%)
Residential mortgage		2,951,013		2,840,458		3.9	%		2,692,054		2,535,993		2,346,007		25.8	%
Total loans	$	14,031,071	$	13,503,507		3.9	%	$	13,089,589	$	12,655,322	$	12,616,735		11.2	%
	Dec 31, 2011		Sept 30, 2011		Dec11 vs Sep11 % Change			Jun 30, 2011		Mar 31, 2011		Dec 31, 2010		Dec11 vs Dec10 % Change
Period End Deposit and Customer Funding Composition
Demand	$	3,928,792	$	3,711,570		5.9	%	$	3,218,722	$	3,285,604	$	3,684,965		6.6	%
Savings		986,766		1,013,195		(2.6	%)		1,007,337		973,122		887,236		11.2	%
Interest-bearing demand		2,297,454		2,071,627		10.9	%		1,931,519		1,755,367		1,870,664		22.8	%
Money market		5,150,275		5,205,401		(1.1	%)		4,982,492		4,968,510		5,434,867		(5.2	%)
Brokered CDs		202,948		203,827		(0.4	%)		316,670		324,045		442,640		(54.2	%)
Other time deposits		2,524,420		2,576,790		(2.0	%)		2,609,310		2,716,995		2,905,021		(13.1	%)
Total deposits		15,090,655		14,782,410		2.1	%		14,066,050		14,023,643		15,225,393		(0.9	%)
Customer repo sweeps		664,624		871,619		(23.7	%)		930,101		1,048,516		563,884		17.9	%
Customer repo term		695,131		1,141,450		(39.1	%)		1,147,938		887,434		—		N/M
Total customer funding		1,359,755		2,013,069		(32.5	%)		2,078,039		1,935,950		563,884		141.1	%
Total deposits and customer funding	$	16,450,410	$	16,795,479		(2.1	%)	$	16,144,089	$	15,959,593	$	15,789,277		4.2	%
Network transaction deposits included above in interest-bearing demand and money market		875,052		875,630		(0.1	%)		824,003		936,688		1,144,134		(23.5	%)
Brokered CDs		202,948		203,827		(0.4	%)		316,670		324,045		442,640		(54.2	%)
Total network and brokered funding		1,078,000		1,079,457		(0.1	%)		1,140,673		1,260,733		1,586,774		(32.1	%)
Net customer deposits and funding (4)		15,372,410		15,716,022		(2.2	%)		15,003,416		14,698,860		14,202,503		8.2	%

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

N/M = Not meaningful.

EX-99.2

Associated Banc-Corp

4Q 2011 Earnings Presentation

January 19, 2012

Exhibit 99.2

Forward-Looking Statements

1

Important note regarding forward-looking statements:

Statements made in this presentation 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. 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”, “outlook”, or similar expressions. Outcomes related to such statements are subject to

numerous risk factors and uncertainties including those listed in the company’s most recent

Form 10-K and any subsequent Form10-Q.

Fourth Quarter 2011 Highlights

•

Net income available to common shareholders of $40 million or $0.23 per share

–

Improved 17%, or $6 million from the prior quarter

•

Total loans of $14.0 billion were up 4% from the end of the third quarter

–

Commercial and business lending grew by a net $386 million

–

Commercial real estate lending increased by a net $112 million

–

Residential mortgages grew by a net $111 million

•

Continued improvement in key credit metrics

–

Nonaccrual loans declined 12% from the prior quarter and 38% on a year-over-year basis to

$357 million, the lowest level in eight quarters

–

Provision for loan losses of $1 million was down significantly from the prior quarter

–

Net charge offs of $23 million were down 25% from $30 million for the third quarter

•

Capital ratios remain very strong with a Tier 1 common ratio of 12.24% and total capital ratio

of 15.53%

2

2011 Recap

3

TARP / MOU

•

Completed the repurchase of TARP funds in September

–

No incremental common equity raised

•

OCC Memorandum of Understanding (MOU) terminated in September

Loan Growth

Earnings

Credit

•

Grew loans and gained market share

–

Total loans grew 11% YoY; commercial and business loans grew 17%

YoY

•

FY 2011 earnings of $115 million compared to a net loss in 2010

•

Increased earnings per share in each of the four quarters

–

EPS improved $0.84 per share from FY 2010; EPS improved $0.19 per share

from 4Q10 to 4Q11

•

Credit quality continues to improve at a steady pace

–

Nonaccruals down 38% YoY; net charge offs down 69% YoY

Net Interest Margin

•

Defended the margin despite interest rate headwinds

–

NIM increased 6 bps from FY 2010 to FY 2011; up 8bps 4Q11 vs. 4Q10

A Year of Transition; Executing on Strategic Plan

Improving Earnings Profile

4

Net Income Available to Common

Quarterly Results Reflect Positive Trends

•

Net income available to common shareholders improved 17%, or $6 million, from the prior

quarter, and improved $33 million from a year ago

•

Full-year 2011 EPS of $0.66 per share

($ in millions)

Loan Portfolio Growth and Composition

Total Loans of $14.0 billion at December 31, 2011

4Q 2011 Net Loan Growth of $528 million

Total Loans ($ in billions)

+4% QoQ

Peak Loans (4Q 2008) $16.3 billion

Commercial real estate lending

Retail and residential mortgage

Mortgage warehouse

Power & Utilities

Oil & Gas

Loan Mix –

4Q 2011

Commercial and business lending

General commercial loans

5

Loan Growth Trends

6

($ in thousands)

Sep 30, 2011

Dec 31, 2011

$ Change

% Change

Commercial and industrial

3,360,502

$   

3,724,736

$   

364,234

$  

10.8%

Lease financing

54,849

58,194

3,345

6.1%

Commercial real estate - owner occupied

1,068,616

1,086,829

18,213

1.7%

     Commerical and business lending

4,483,967

4,869,759

385,792

8.6%

Commercial real estate - investor

2,481,411

2,563,767

82,356

3.3%

Real estate - construction

554,024

584,046

30,022

5.4%

     Commercial real estate lending

3,035,435

3,147,813

112,378

3.7%

        Total commercial

7,519,402

8,017,572

498,170

6.6%

Home equity

2,571,404

2,504,704

(66,700)

-2.6%

Installment

572,243

557,782

(14,461)

-2.5%

     Total retail

3,143,647

3,062,486

(81,161)

-2.6%

     Residential mortgage

2,840,458

2,951,013

110,555

3.9%

Total Loans

13,503,507

$ 

14,031,071

$ 

527,564

$  

3.9%

Mortgage Origination Activities

Mortgage loans originated for sale

470,530

$      

843,614

$      

373,084

$  

79.3%

Net mortgage banking income

4,521

9,677

5,156

114.0%

Mortgage loans sold from portfolio

N/A

93,953

$        

93,953

$    

N/A

Sep 11 vs Dec 11

Period End Loan Composition

Managing the Cost of Funds and Deposit Levels

7

Cost of Money Market Deposits

Cost of Interest-Bearing Liabilities

Total Deposits

($ in billions)

Total Deposits of $15.1 billion at December 31, 2011

Funding the Balance Sheet

8

Assets ($ in millions)

Liabilities ($ in millions)

Q4 2011

Q4 2011

Net short and long-term funding

-

318

Net loan growth

+ 528

Net deposit growth

+ 308

2012 Outlook

2012 Outlook

•

Continued securities run-off over first

half of year

•

Continued loan growth throughout the

year

•

Continued run-off of high cost and

brokered CDs

•

Growing commercial and business

deposit  balances throughout the year

More Attractive Asset Mix

Lower Average Cost Liability Mix

Net securities run-off

-

516

Significant

Improvements

in

Credit

Quality Indicators

9

($ in millions)

4Q 2010

1Q 2011

2Q 2011

3Q 2011

4Q 2011

Provision for loan losses

$       63.0

$       31.0

$       16.0

$         4.0

$         1.0

Net charge offs

$     108.2

$       53.4

$       44.5

$       30.2

$       22.6

Potential problem loans

$     963.7

$     911.5

$     699.4

$     659.5

$     566.4

Nonaccruals

$     574.4

$     488.3

$     467.6

$     403.4

$     356.8

ALLL/Total loans

3.78%

3.59%

3.25%

2.96%

2.70%

ALLL/Nonaccruals

83.02%

93.07%

91.09%

99.09%

105.99%

NPA/Assets

2.84%

2.50%

2.33%

2.03%

1.82%

Nonaccruals/Loans

4.55%

3.86%

3.57%

2.99%

2.54%

NCOs / Avg Loans

3.41%

1.71%

1.37%

0.90%

0.64%

Maintaining a Strong Capital Profile

ASBC Capital Ratios

4Q 2010

1Q 2011

2Q 2011

3Q 2011

4Q 2011

Stockholders’

equity / assets

14.50%

14.88%

13.60%

13.01%

13.07%

Tangible common equity / tangible assets

8.12%

8.42%

8.49%

8.77%

8.84%

Tangible equity / tangible assets

10.59%

10.93%

9.71%

9.07%

9.14%

Tier 1 common equity / risk-weighted assets

12.26%

12.65%

12.61%

12.44%

12.24%

Tier 1 leverage ratio

11.19%

11.65%

10.46%

9.62%

9.81%

Tier 1 risk-based capital ratio

17.58%

18.08%

16.03%

14.35%

14.08%

Total risk-based capital ratio

19.05%

19.56%

17.50%

15.81%

15.53%

10

2012 Outlook

11

Loan Growth

•

~3% quarterly growth

Deposit Growth

Fee Income

Expenses

NIM

Positioned for Growth; Creating Long-Term Shareholder Value

Footprint

Credit

Capital

•

Continued run-off of high cost

CDs & disciplined deposit pricing

•

Sustained focus on treasury

management solutions to drive

growth in commercial deposits

•

Relatively stable

•

Modest improvement despite

considerable headwinds

•

Low single-digit YoY growth

•

Net consolidation in branch

network while remodeling and

renovations continue

•

Continuing improvement in

credit trends

•

Very modest provision outlook

•

Increased dividends in 2012;

subject to Fed approval

12

Summary