Press Release Details 5.23

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Associated Banc-Corp Reports First Quarter 2010 Results

04/22/2010

GREEN BAY, Wis.--(BUSINESS WIRE)-- Associated Banc-Corp (NASDAQ: ASBC):

    --  $500 million common stock offering results in tangible common equity
        ratio of 7.73% compared to 5.79% at December 31, 2009
    --  At March 31, 2010, the Company's Tier 1 capital to total average assets
        ratio was 10.57% and total capital to risk-weighted assets ratio was
        18.15%
    --  Provision for loan losses of $165.3 million, with net charge offs of
        $163.3 million
    --  Net loss to common shareholders of $33.8 million, or $0.20 per share,
        for the quarter ended March 31, 2010

Associated Banc-Corp (NASDAQ: ASBC) today reported a net loss to common shareholders of $33.8 million, or $0.20 per common share, for the quarter ended March 31, 2010. This compares to net income of $35.4 million, or $0.28 per common share, for the quarter ended March 31, 2009.

On January 15, 2010, the Company completed a $500 million common equity offering, resulting in a net increase in the Company's equity capital of approximately $478 million and a 44.8 million increase in the number of common shares outstanding. As a result of the successful capital raise, the Company's tangible common equity ratio was 7.73% at March 31, 2010 compared to 5.79% at December 31, 2009.

At March 31, 2010, the Company's Tier 1 capital to total average assets ratio was 10.57% and total capital to risk-weighted assets ratio was 18.15%. These capital ratios far exceed the criteria for "well capitalized" banks and requirements by banking regulators.

"Our successful capital raise during the quarter positions our company well and provides us with additional flexibility as we manage through this credit cycle and focus on our strategic priorities," said President and CEO Philip B. Flynn. "As anticipated, first quarter results were impacted by our continuing efforts to address our credit challenges, particularly in the construction and commercial real estate segments of our loan portfolio."

CREDIT QUALITY

Credit-related charges of $165.7 million for the first quarter of 2010 were down from $405.3 million for the fourth quarter of 2009. First quarter credit-related charges were comprised of a $165.3 million provision for loan losses and a $0.4 million increase in the reserve for losses on unfunded commitments. Net charge offs for the quarter were $163.3 million. This compares to net charge offs of $233.8 million for the fourth quarter of 2009.

Total nonperforming loans increased $88.1 million during the quarter to $1.210 billion at March 31, 2010, with commercial real estate and construction-related nonperforming loans increasing $123.6 million to $844.4 million. Potential problem loans declined $227.8 million during the quarter to $1.368 billion at March 31, 2010, with potential problem loans in the commercial real estate and construction segments of the Company's loan portfolio declining $160.7 million to $828.5 million.

The Company's allowance for loan losses rose to $575.6 million, or 4.33% of total loans, at March 31, 2010 primarily due to an $829.3 million decline in the Company's loan portfolio balance during the quarter. This compares to an allowance for loan losses as a percent of total loans of 4.06% at December 31, 2009 and 1.97% at March 31, 2009.

LOANS AND DEPOSITS

At March 31, 2010, the Company's loan portfolio was $13.3 billion, down 5.9% from $14.1 billion at December 31, 2009, and down 16.5% from $15.9 billion at March 31, 2009, as declines were experienced in all segments of the portfolio during the first quarter of 2010.

Total deposits were $17.5 billion at March 31, 2010, up 4.6% from $16.7 billion at December 31, 2009, and up 10.2% from $15.9 billion at March 31, 2009. During the first quarter of 2010, a combined decrease of $411.7 million occurred in interest bearing and noninterest bearing demand accounts, which was more than offset by a $716.2 million increase in money market deposits, primarily from institutional depositors, and a $600.2 million increase in brokered CDs. This compares to a $1.3 billion combined increase in interest-bearing and noninterest demand account balances and a $1.1 billion increase in money market deposits year-over-year, which were offset by a $839.5 million decline in time deposit (brokered and customer combined) balances.

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income for the first quarter ended March 31, 2010 was $169.2 million compared to $178.4 million for the fourth quarter of 2009 and $189.3 million for the first quarter of 2009. The Company's net interest margin was 3.35% for the first quarter 2010, down 24 basis points from 3.59% for both the quarter ended December 31, 2009 and quarter ended March 31, 2009. The net interest margin was impacted by two factors during the quarter. First, an increase in the Company's liquidity position resulted in a 19 basis point reduction in net interest margin during the quarter. Second, increased levels of nonaccrual loans for the quarter resulted in a 4 basis point reduction in the net interest margin.

NONINTEREST INCOME AND EXPENSE

Noninterest income for the quarter ended March 31, 2010 was $98.0 million, up $13.3 million from $84.7 million for the fourth quarter of 2009, and up $9.0 million from $89.0 million for the first quarter of 2009. The increase from the quarter ended December 31, 2009 was primarily due to a $23.6 million gain on the sale of $538.3 million of investment securities during the first quarter of 2010, which was partially offset by a $4.7 million decline in core fee-based revenues and a $3.8 million decline in mortgage banking income. The increase over the first quarter 2009 was primarily due to a $13.0 million higher gain on sale of investments in the first quarter of 2010 compared to the first quarter of 2009.

Core fee-based revenue remained relatively strong at $62.1 million for the first quarter of 2010, compared to $66.8 million for the fourth quarter of 2009 and $61.4 million for the first quarter of 2009. The reduction in first quarter core fee-based revenue from the prior quarter was due to lower levels of consumer fee-based deposit activity, as overdraft and debit card fees declined a total of $4.2 million.

Mortgage loans originated for sale during the first quarter of 2010 were $454.7 million compared to $671.3 million for the fourth quarter of 2009, and a record $1.080 billion for the first quarter of 2009. Net mortgage banking income totaled $5.4 million for the first quarter of 2010, down $3.8 million from the fourth quarter of 2009, and up $1.1 million from the first quarter of 2009. First quarter 2010 net mortgage banking income included a $0.9 million valuation recovery related to mortgage servicing rights, compared to a valuation recovery of $0.7 million in the fourth quarter of 2009, and a $12.3 million valuation charge in the first quarter of 2009.

Total noninterest expense for the first quarter of 2010 was $151.9 million, down $7.1 million from $159.0 million in the fourth quarter of 2009, and up $10.6 million from $141.3 million in the first quarter of 2009. The decrease over the fourth quarter of 2009 was primarily due to a $0.4 million increase in the reserve for unfunded commitments in the first quarter of 2010 compared to $10.5 million in the fourth quarter of 2009. Personnel expenses increased $6.7 million over the prior quarter due to the resetting of payroll tax and incentive accruals, and $2.2 million increase in FDIC expense on higher deposit balances. These increases were offset by decreases in several other expense categories, most notably in legal and professional fees, which were down $3.6 million, and foreclosure/OREO costs, down $3.1 million from the prior quarter. The $10.6 million increase over the first quarter of 2009 was mainly due to $6.1 million higher FDIC expense, and $2.7 million higher foreclosure/OREO costs.

CONFERENCE CALL

Senior management will host a conference call for investors and analysts at 4 p.m. Central Time (CT) on Thursday, April 22, 2010. The toll-free dial-in number for the live call is 877-941-4774. The number for international callers is 480-629-9760. Participants should ask the operator for the Associated Banc-Corp first quarter 2010 earnings call, or for call ID number 4277482. A replay of the call will be available starting at 7 p.m. CT on April 22, 2010 through 11 p.m. CT on May 22, 2010 by calling 800-406-7325 domestically or 303-590-3030 internationally. The call ID number, 4277482, is required to access the replay.

ABOUT ASSOCIATED BANC-CORP

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

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

 Consolidated Balance Sheets (Unaudited)

 Associated Banc-Corp

                      March 31,       December 31,    Mar10 vs  March 31,       Mar10 vs
                                                      Dec09                     Mar09

 (in thousands)       2010            2009            % Change  2009            % Change

 Assets

 Cash and due from    $ 284,882       $ 770,816       (63.0 %)  $ 378,645       (24.8 %)
 banks

 Interest-bearing
 deposits in other      1,998,528       26,091        N/M         12,527        N/M
 financial
 institutions

 Federal funds sold
 and securities
 purchased under        19,220          23,785        (19.2 %)    48,578        (60.4 %)
 agreements to
 resell

 Investment
 securities             5,267,372       5,835,533     (9.7  %)    5,314,617     (0.9  %)
 available for sale,
 at fair value

 Federal Home Loan
 Bank and Federal       184,811         181,316       1.9   %     181,205       2.0   %
 Reserve Bank
 stocks, at cost

 Loans held for sale    274,003         81,238        237.3 %     355,077       (22.8 %)

 Loans                  13,299,321      14,128,625    (5.9  %)    15,917,952    (16.5 %)

 Allowance for loan     (575,573   )    (573,533   )  0.4   %     (313,228   )  83.8  %
 losses

 Loans, net             12,723,748      13,555,092    (6.1  %)    15,604,724    (18.5 %)

 Premises and           183,401         186,564       (1.7  %)    187,685       (2.3  %)
 equipment, net

 Goodwill               929,168         929,168       0.0   %     929,168       0.0   %

 Other intangible       91,991          92,807        (0.9  %)    72,965        26.1  %
 assets, net

 Other assets           1,150,512       1,191,732     (3.5  %)    1,264,534     (9.0  %)

 Total assets         $ 23,107,636    $ 22,874,142    1.0   %   $ 24,349,725    (5.1  %)

 Liabilities and
 Stockholders'
 Equity

 Noninterest-bearing  $ 3,023,247     $ 3,274,973     (7.7  %)  $ 2,818,088     7.3   %
 deposits

 Interest-bearing
 deposits, excluding    13,731,421      13,311,672    3.2   %     12,132,610    13.2  %
 Brokered CDs

 Brokered CDs           742,119         141,968       422.7 %     922,491       (19.6 %)

 Total deposits         17,496,787      16,728,613    4.6   %     15,873,189    10.2  %

 Short-term             575,564         1,226,853     (53.1 %)    3,365,130     (82.9 %)
 borrowings

 Long-term funding      1,643,979       1,953,998     (15.9 %)    1,961,604     (16.2 %)

 Accrued expenses
 and other              210,797         226,070       (6.8  %)    252,633       (16.6 %)
 liabilities

 Total liabilities      19,927,127      20,135,534    (1.0  %)    21,452,556    (7.1  %)

 Stockholders'
 Equity

 Preferred equity       511,910         511,107       0.2   %     508,766       0.6   %

 Common stock           1,737           1,284         35.3  %     1,284         35.3  %

 Surplus                1,564,536       1,082,335     44.6  %     1,075,598     45.5  %

 Retained earnings      1,044,501       1,081,156     (3.4  %)    1,287,687     (18.9 %)

 Accumulated other
 comprehensive          59,744          63,432        (5.8  %)    23,931        149.7 %
 income

 Treasury stock         (1,919     )    (706       )  N/M         (97        )  N/M

 Total stockholders'    3,180,509       2,738,608     16.1  %     2,897,169     9.8   %
 equity

 Total liabilities
 and stockholders'    $ 23,107,636    $ 22,874,142    1.0   %   $ 24,349,725    (5.1  %)
 equity

 N/M = Not
 meaningful.



 Consolidated Statements of Income (Unaudited)

 Associated Banc-Corp

                                           For The Three Months Ended

                                           March 31,                   Quarter

 (in thousands, except per share amounts)  2010         2009           % Change

 Interest Income

 Interest and fees on loans                $ 159,291    $ 202,025      (21.2  %)

 Interest and dividends on investment
 securities and deposits in other
 financial institutions:

 Taxable                                     47,918       50,903       (5.9   %)

 Tax-exempt                                  8,709        9,494        (8.3   %)

 Interest on federal funds sold and
 securities purchased under agreements to    22           63           (65.1  %)
 resell

 Total interest income                       215,940      262,485      (17.7  %)

 Interest Expense

 Interest on deposits                        28,745       46,599       (38.3  %)

 Interest on short-term borrowings           2,026        5,154        (60.7  %)

 Interest on long-term funding               15,947       21,454       (25.7  %)

 Total interest expense                      46,718       73,207       (36.2  %)

 Net Interest Income                         169,222      189,278      (10.6  %)

 Provision for loan losses                   165,345      105,424      56.8   %

 Net interest income after provision for     3,877        83,854       (95.4  %)
 loan losses

 Noninterest Income

 Trust service fees                          9,356        8,477        10.4   %

 Service charges on deposit accounts         26,059       27,205       (4.2   %)

 Card-based and other nondeposit fees        10,820       10,174       6.3    %

 Retail commissions                          15,817       15,512       2.0    %

 Mortgage banking, net                       5,407        4,267        26.7   %

 Capital market fees, net                    130          2,626        (95.0  %)

 Bank owned life insurance income            3,256        5,772        (43.6  %)

 Asset sale losses, net                      (1,641  )    (1,107  )    48.2   %

 Investment securities gains, net            23,581       10,596       122.5  %

 Other                                       5,253        5,455        (3.7   %)

 Total noninterest income                    98,038       88,977       10.2   %

 Noninterest Expense

 Personnel expense                           79,355       77,098       2.9    %

 Occupancy                                   13,175       12,881       2.3    %

 Equipment                                   4,385        4,589        (4.4   %)

 Data processing                             7,299        7,597        (3.9   %)

 Business development and advertising        4,445        4,737        (6.2   %)

 Other intangible amortization               1,253        1,386        (9.6   %)

 Legal and professional fees                 2,795        4,241        (34.1  %)

 Foreclosure/OREO expense                    7,729        5,013        54.2   %

 FDIC expense                                11,829       5,775        104.8  %

 Other                                       19,594       17,947       9.2    %

 Total noninterest expense                   151,859      141,264      7.5    %

 Income (loss) before income taxes           (49,944 )    31,567       (258.2 %)

 Income tax benefit                          (23,555 )    (11,158 )    111.1  %

 Net income (loss)                           (26,389 )    42,725       (161.8 %)

 Preferred stock dividends and discount      7,365        7,321        0.6    %

 Net income (loss) available to common     $ (33,754 )  $ 35,404       (195.3 %)
 equity

 Earnings (Loss) Per Common Share:

 Basic                                     $ (0.20   )  $ 0.28         (171.4 %)

 Diluted                                   $ (0.20   )  $ 0.28         (171.4 %)

 Average Common Shares Outstanding:

 Basic                                       165,842      127,839      29.7   %

 Diluted                                     165,842      127,845      29.7   %



 Consolidated Statements of Income (Unaudited) - Quarterly Trend

 Associated Banc-Corp

 (in thousands,
 except per share  1Q10         4Q09          3Q09         2Q09         1Q09
 amounts)

 Interest Income

 Interest and      $ 159,291    $ 172,624     $ 183,264    $ 194,352    $ 202,025
 fees on loans

 Interest and
 dividends on
 investment
 securities and
 deposits in
 other financial
 institutions:

 Taxable             47,918       48,567        46,873       46,688       50,903

 Tax-exempt          8,709        8,987         8,498        8,819        9,494

 Interest on
 federal funds
 sold and
 securities          22           32            16           51           63
 purchased under
 agreements to
 resell

 Total interest      215,940      230,210       238,651      249,910      262,485
 income

 Interest Expense

 Interest on         28,745       31,471        37,811       44,993       46,599
 deposits

 Interest on
 short-term          2,026        3,062         2,895        5,088        5,154
 borrowings

 Interest on
 long-term           15,947       17,324        18,709       20,691       21,454
 funding

 Total interest      46,718       51,857        59,415       70,772       73,207
 expense

 Net Interest        169,222      178,353       179,236      179,138      189,278
 Income

 Provision for       165,345      394,789       95,410       155,022      105,424
 loan losses

 Net interest
 income (loss)       3,877        (216,436 )    83,826       24,116       83,854
 after provision
 for loan losses

 Noninterest
 Income

 Trust service       9,356        9,906         9,057        8,569        8,477
 fees

 Service charges
 on deposit          26,059       29,213        30,829       29,671       27,205
 accounts

 Card-based and
 other nondeposit    10,820       12,359        11,586       11,858       10,174
 fees

 Retail              15,817       15,296        15,041       14,829       15,512
 commissions

 Total core
 fee-based           62,052       66,774        66,513       64,927       61,368
 revenue

 Mortgage            5,407        9,227         (909    )    28,297       4,267
 banking, net

 Capital market      130          291           226          2,393        2,626
 fees, net

 Bank owned life     3,256        3,310         3,789        3,161        5,772
 insurance income

 Asset sale          (1,641  )    (1,551   )    (126    )    (1,287  )    (1,107  )
 losses, net

 Investment
 securities gains    23,581       (395     )    (42     )    (1,385  )    10,596
 (losses), net

 Other               5,253        7,078         5,858        5,835        5,455

 Total
 noninterest         98,038       84,734        75,309       101,941      88,977
 income

 Noninterest
 Expense

 Personnel           79,355       72,620        73,501       81,171       77,098
 expense

 Occupancy           13,175       12,170        11,949       12,341       12,881

 Equipment           4,385        4,551         4,575        4,670        4,589

 Data processing     7,299        7,728         7,442        8,126        7,597

 Business
 development and     4,445        4,443         3,910        4,943        4,737
 advertising

 Other intangible    1,253        1,386         1,386        1,385        1,386
 amortization

 Legal and
 professional        2,795        6,386         3,349        5,586        4,241
 fees

 Foreclosure/OREO    7,729        10,852        8,688        13,576       5,013
 expense

 FDIC expense        11,829       9,618         8,451        18,090       5,775

 Other               19,594       29,260        17,860       20,143       17,947

 Total
 noninterest         151,859      159,014       141,111      170,031      141,264
 expense

 Income (loss)
 before income       (49,944 )    (290,716 )    18,024       (43,974 )    31,567
 taxes

 Income tax
 expense             (23,555 )    (117,479 )    2,030        (26,633 )    (11,158 )
 (benefit)

 Net income          (26,389 )    (173,237 )    15,994       (17,341 )    42,725
 (loss)

 Preferred stock
 dividends and       7,365        7,354         7,342        7,331        7,321
 discount

 Net income
 (loss) available  $ (33,754 )  $ (180,591 )  $ 8,652      $ (24,672 )  $ 35,404
 to common equity

 Earnings (Loss)
 Per Common
 Share:

 Basic             $ (0.20   )  $ (1.41    )  $ 0.07       $ (0.19   )  $ 0.28

 Diluted           $ (0.20   )  $ (1.41    )  $ 0.07       $ (0.19   )  $ 0.28

 Average Common
 Shares
 Outstanding:

 Basic               165,842      127,869       127,863      127,861      127,839

 Diluted             165,842      127,869       127,863      127,861      127,845



 Selected Quarterly Information

 Associated Banc-Corp

 (in thousands,
 except per share
 and full time     1st Qtr 2010    4th Qtr 2009    3rd Qtr 2009    2nd Qtr 2009    1st Qtr 2009
 equivalent
 employee data)

 Summary of
 Operations

 Net interest      $ 169,222       $ 178,353       $ 179,236       $ 179,138       $ 189,278
 income

 Provision for       165,345         394,789         95,410          155,022         105,424
 loan losses

 Asset sale          (1,641     )    (1,551     )    (126       )    (1,287     )    (1,107     )
 losses, net

 Investment
 securities gains    23,581          (395       )    (42        )    (1,385     )    10,596
 (losses), net

 Noninterest
 income
 (excluding          76,098          86,680          75,477          104,613         79,488
 securities &
 asset gains)

 Noninterest         151,859         159,014         141,111         170,031         141,264
 expense

 Income (loss)
 before income       (49,944    )    (290,716   )    18,024          (43,974    )    31,567
 taxes

 Income tax
 expense             (23,555    )    (117,479   )    2,030           (26,633    )    (11,158    )
 (benefit)

 Net income          (26,389    )    (173,237   )    15,994          (17,341    )    42,725
 (loss)

 Net income
 (loss) available    (33,754    )    (180,591   )    8,652           (24,672    )    35,404
 to common equity

 Taxable
 equivalent          6,034           6,188           5,938           6,150           6,544
 adjustment

 Per Common Share
 Data

 Net income
 (loss):

 Basic             $ (0.20      )  $ (1.41      )  $ 0.07          $ (0.19      )  $ 0.28

 Diluted             (0.20      )    (1.41      )    0.07            (0.19      )    0.28

 Dividends           0.01            0.05            0.05            0.05            0.32

 Market Value:

 High              $ 14.54         $ 13.00         $ 12.67         $ 19.00         $ 21.39

 Low                 11.48           10.37           9.21            12.50           10.60

 Close               13.76           11.01           11.42           12.50           15.45

 Book value          15.44           17.42           18.88           18.49           18.68

 Tangible book       9.90            9.93            11.38           10.97           11.15
 value

 Performance
 Ratios
 (annualized)

 Earning assets      4.24       %    4.59       %    4.62       %    4.70       %    4.94       %
 yield

 Interest-bearing    1.11            1.24            1.36            1.57            1.61
 liabilities rate

 Net interest        3.35            3.59            3.50            3.40            3.59
 margin

 Return on           (0.46      )    (3.02      )    0.27            (0.29      )    0.71
 average assets

 Return on           (3.40      )    (23.72     )    2.19            (2.40      )    5.98
 average equity

 Return on
 average tangible    (8.17      )    (50.16     )    2.39            (6.88      )    10.05
 common equity
 (1)

 Efficiency ratio    60.42           58.63           54.14           58.65           51.31
 (2)

 Effective tax       (47.16     )    (40.41     )    11.26           (60.57     )    (35.35     )
 rate (benefit)

 Dividend payout     N/M             N/M             71.43           N/M             114.29
 ratio (3)

 Average Balances

 Assets            $ 23,151,767    $ 22,773,576    $ 23,362,954    $ 24,064,567    $ 24,255,783

 Earning assets      21,075,408      20,499,225      21,063,016      21,847,267      21,959,077

 Interest-bearing    16,970,884      16,663,947      17,412,341      18,125,389      18,457,879
 liabilities

 Loans               13,924,978      14,605,107      15,248,895      16,122,063      16,430,347

 Deposits            17,143,924      16,407,034      16,264,181      16,100,686      15,045,976

 Wholesale           2,837,001       3,332,642       4,067,830       4,876,970       6,098,266
 funding

 Common
 stockholders'       2,633,680       2,387,534       2,394,410       2,400,664       2,391,325
 equity

 Stockholders'       3,145,074       2,898,132       2,904,210       2,909,700       2,899,603
 equity

 Common
 stockholders'       11.38      %    10.48      %    10.25      %    9.98       %    9.86       %
 equity/assets

 Stockholders'       13.58      %    12.73      %    12.43      %    12.09      %    11.95      %
 equity / assets

 At Period End

 Assets            $ 23,107,636    $ 22,874,142    $ 22,881,527    $ 24,013,567    $ 24,349,725

 Loans               13,299,321      14,128,625      14,765,597      15,310,107      15,917,952

 Allowance for       575,573         573,533         412,530         407,167         313,228
 loan losses

 Goodwill            929,168         929,168         929,168         929,168         929,168

 Mortgage
 servicing rights    64,190          63,753          61,066          59,762          39,754
 at fair value,
 net

 Other intangible    27,801          29,054          30,440          31,826          33,211
 assets

 Deposits            17,496,787      16,728,613      16,446,109      16,320,391      15,873,189

 Wholesale           2,219,543       3,180,851       3,279,100       4,474,542       5,326,734
 funding

 Stockholders'       3,180,509       2,738,608       2,924,659       2,873,768       2,897,169
 equity

 Stockholders'       13.76      %    11.97      %    12.78      %    11.97      %    11.90      %
 equity / assets

 Tangible common
 equity /            7.73       %    5.79       %    6.64       %    6.09       %    6.10       %
 tangible assets
 (4)

 Tangible
 equity/tangible     10.04      %    8.12       %    8.96       %    8.30       %    8.27       %
 assets (5)

 Tier 1
 risk-based          16.40      %    12.52      %    13.14      %    12.45      %    11.93      %
 capital ratio

 Tier 1 leverage     10.57      %    8.76       %    9.35       %    9.06       %    9.06       %
 ratio

 Total risk-based    18.15      %    14.24      %    14.83      %    14.35      %    13.79      %
 capital ratio

 Shares
 outstanding, end    172,880         127,876         127,864         127,861         127,860
 of period

 Selected trend
 information

 Average full
 time equivalent     4,777           4,802           5,004           5,116           5,143
 employees

 Trust assets
 under             $ 5,500,000     $ 5,300,000     $ 5,200,000     $ 5,000,000     $ 4,800,000
 management, at
 market value

 Mortgage loans
 originated for      454,746         671,305         638,229         1,335,175       1,079,732
 sale during
 period

 Mortgage
 portfolio           7,751,000       7,667,000       7,473,000       6,904,000       6,582,000
 serviced for
 others

 Mortgage
 servicing
 rights, net /       0.83       %    0.83       %    0.82       %    0.87       %    0.60       %
 Portfolio
 serviced for
 others

 N/M = Not
 meaningful.

 (1) Return on average tangible common equity = Net income available to common equity divided by
 average common equity excluding average goodwill and other intangible assets. This is a non-GAAP
 financial measure.

 (2) Efficiency ratio = Noninterest expense divided by sum of taxable equivalent net interest
 income plus noninterest income, excluding investment securities gains, net, and asset sales
 gains, net.

 This is a non-GAAP financial measure.

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

 (4) Tangible common equity to tangible assets = Common stockholders' equity excluding goodwill
 and other intangible assets divided by assets excluding goodwill and other intangible assets.

 This is a non-GAAP financial measure.

 (5) Tangible equity to tangible assets = Stockholders' equity excluding goodwill and other
 intangible assets divided by assets excluding goodwill and other intangible assets.

 This is a non-GAAP financial measure.



 Selected
 Asset Quality
 Information

 Associated
 Banc-Corp

                                              Mar10 vs                                               Mar10 vs
                                              Dec09                                                  Mar09

 (in            Mar 31, 2010   Dec 31, 2009   % Change  Sept 30, 2009  Jun 30, 2009   Mar 31, 2009   % Change
 thousands)

 Allowance for
 Loan Losses

 Beginning      $ 573,533      $ 412,530      39.0  %   $ 407,167      $ 313,228      $ 265,378      116.1 %
 balance

 Provision for    165,345        394,789      (58.1 %)    95,410         155,022        105,424      56.8  %
 loan losses

 Charge offs      (174,627  )    (236,367  )  (26.1 %)    (92,340   )    (63,325   )    (60,174   )  190.2 %

 Recoveries       11,322         2,581        338.7 %     2,293          2,242          2,600        335.5 %

 Net charge       (163,305  )    (233,786  )  (30.1 %)    (90,047   )    (61,083   )    (57,574   )  183.6 %
 offs

 Ending         $ 575,573      $ 573,533      0.4   %   $ 412,530      $ 407,167      $ 313,228      83.8  %
 balance

 Net Charge                                   Mar10 vs                                               Mar10 vs
 Offs                                         Dec09                                                  Mar09

                Mar 31, 2010   Dec 31, 2009   % Change  Sept 30, 2009  Jun 30, 2009   Mar 31, 2009   % Change

 Commercial,
 financial &    $ 63,699       $ 42,940       48.3  %   $ 57,480       $ 19,367       $ 35,890       77.5  %
 agricultural

 Commercial       21,328         40,550       (47.4 %)    4,449          8,382          2,858        646.3 %
 real estate

 Real estate -    60,186         124,659      (51.7 %)    12,837         16,249         3,452        N/M
 construction

 Lease            774            261          196.6 %     319            988            2            N/M
 financing

 Total            145,987        208,410      (30.0 %)    75,085         44,986         42,202       245.9 %
 commercial

 Home equity      11,769         16,503       (28.7 %)    11,202         10,343         10,742       9.6   %

 Installment      2,222          2,099        5.9   %     2,433          2,321          1,986        11.9  %

 Total retail     13,991         18,602       (24.8 %)    13,635         12,664         12,728       9.9   %

 Residential      3,327          6,774        (50.9 %)    1,327          3,433          2,644        25.8  %
 mortgage

 Total net      $ 163,305      $ 233,786      (30.1 %)  $ 90,047       $ 61,083       $ 57,574       183.6 %
 charge offs

 Net Charge
 Offs to
 Average Loans

                Mar 31, 2010   Dec 31, 2009             Sept 30, 2009  Jun 30, 2009   Mar 31, 2009

 Commercial,
 financial &      7.95      %    4.90      %              6.11      %    1.91      %    3.41      %
 agricultural

 Commercial       2.30      %    4.12      %              0.45      %    0.92      %    0.32      %
 real estate

 Real estate -    17.80     %    31.85     %              2.85      %    3.07      %    0.62      %
 construction

 Lease            3.41      %    1.05      %              1.19      %    3.49      %    0.01      %
 financing

 Total            6.98      %    9.15      %              3.13      %    1.82      %    1.67      %
 commercial

 Home equity      1.90      %    2.54      %              1.70      %    1.52      %    1.53      %

 Installment      0.98      %    0.94      %              1.13      %    1.10      %    0.94      %

 Total retail     1.66      %    2.13      %              1.56      %    1.42      %    1.39      %

 Residential      0.67      %    1.27      %              0.23      %    0.53      %    0.43      %
 mortgage

 Total net        4.76      %    6.35      %              2.34      %    1.52      %    1.42      %
 charge offs

 Credit                                       Mar10 vs                                               Mar10 vs
 Quality                                      Dec09                                                  Mar09

                Mar 31, 2010   Dec 31, 2009   % Change  Sept 30, 2009  Jun 30, 2009   Mar 31, 2009   % Change

 Nonaccrual     $ 1,180,185    $ 1,077,799    9.5   %   $ 845,320      $ 700,514      $ 433,246      172.4 %
 loans

 Loans 90 or
 more days
 past due and     6,353          24,981       (74.6 %)    23,174         19,785         16,002       (60.3 %)
 still
 accruing

 Restructured     23,420         19,037       23.0  %     17,256         13,089         2,927        N/M
 loans

 Total
 nonperforming    1,209,958      1,121,817    7.9   %     885,750        733,388        452,175      167.6 %
 loans

 Other real
 estate owned     62,220         68,441       (9.1  %)    60,010         51,633         54,883       13.4  %
 (OREO)

 Total
 nonperforming  $ 1,272,178    $ 1,190,258    6.9   %   $ 945,760      $ 785,021      $ 507,058      150.9 %
 assets

 Provision for    165,345        394,789      (58.1 %)    95,410         155,022        105,424      56.8  %
 loan losses

 Net charge       163,305        233,786      (30.1 %)    90,047         61,083         57,574       183.6 %
 offs

 Allowance for
 loan losses /    4.33      %    4.06      %              2.79      %    2.66      %    1.97      %
 loans

 Allowance for
 loan losses /    47.57          51.13                    46.57          55.52          69.27
 nonperforming
 loans

 Nonperforming
 loans / total    9.10           7.94                     6.00           4.79           2.84
 loans

 Nonperforming
 assets /         9.52           8.38                     6.38           5.11           3.17
 total loans
 plus OREO

 Nonperforming
 assets /         5.51           5.20                     4.13           3.27           2.08
 total assets

 Net charge
 offs /           4.76           6.35                     2.34           1.52           1.42
 average loans
 (annualized)

 Year-to-date
 net charge       4.76           2.84                     1.75           1.47           1.42
 offs /
 average loans

 Nonperforming
 loans by
 type:

 Commercial,
 financial &    $ 180,182      $ 234,418      (23.1 %)  $ 209,843      $ 187,943      $ 102,257      76.2  %
 agricultural

 Commercial       356,853        307,478      16.1  %     213,736        165,929        100,838      253.9 %
 real estate

 Real estate -    487,552        413,360      17.9  %     301,844        264,402        152,008      220.7 %
 construction

 Lease            29,466         19,506       51.1  %     18,814         1,929          1,707        N/M
 financing

 Total            1,054,053      974,762      8.1   %     744,237        620,203        356,810      195.4 %
 commercial

 Home equity      47,231         44,257       6.7   %     45,905         38,474         35,224       34.1  %

 Installment      7,059          7,577        (6.8  %)    7,387          7,545          6,755        4.5   %

 Total retail     54,290         51,834       4.7   %     53,292         46,019         41,979       29.3  %

 Residential      101,615        95,221       6.7   %     88,221         67,166         53,386       90.3  %
 mortgage

 Total
 nonperforming  $ 1,209,958    $ 1,121,817    7.9   %   $ 885,750      $ 733,388      $ 452,175      167.6 %
 loans

 Loans past
 due 30-89      $ 165,280      $ 240,755      (31.3 %)  $ 175,492      $ 209,323      $ 245,854      (32.8 %)
 days

 Potential                                    Mar10 vs                                               Mar10 vs
 Problem Loans                                Dec09                                                  Mar09

                Mar 31, 2010   Dec 31, 2009   % Change  Sept 30, 2009  Jun 30, 2009   Mar 31, 2009   % Change

 Commercial,
 financial &    $ 505,903      $ 563,836      (10.3 %)  $ 481,034      $ 428,550      $ 365,069      38.6  %
 agricultural

 Commercial       565,969        598,137      (5.4  %)    588,013        462,103        280,479      101.8 %
 real estate

 Real estate -    262,572        391,105      (32.9 %)    462,029        481,467        347,968      (24.5 %)
 construction

 Lease            5,158          8,367        (38.4 %)    9,572          24,934         2,938        75.6  %
 financing

 Total            1,339,602      1,561,445    (14.2 %)    1,540,648      1,397,054      996,454      34.4  %
 commercial

 Home equity      7,446          13,400       (44.4 %)    15,933         13,626         5,935        25.5  %

 Installment      1,103          1,524        (27.6 %)    1,908          1,043          1,132        (2.6  %)

 Total retail     8,549          14,924       (42.7 %)    17,841         14,669         7,067        21.0  %

 Residential      19,591         19,150       2.3   %     15,414         14,448         13,030       50.4  %
 mortgage

 Total
 potential      $ 1,367,742    $ 1,595,519    (14.3 %)  $ 1,573,903    $ 1,426,171    $ 1,016,551    34.5  %
 problem loans

 N/M - Not
 meaningful.



 Net Interest Income
 Analysis - Taxable
 Equivalent Basis

 Associated            Three months ended March 31,      Three months ended March 31,
 Banc-Corp             2010                              2009

                       Average       Interest   Average  Average       Interest   Average

 (in thousands)        Balance       Income /   Yield /  Balance       Income /   Yield /
                                     Expense    Rate                   Expense    Rate

 Earning assets:

 Loans: (1) (2) (3)

 Commercial            $ 8,478,259   $ 89,895   4.29 %   $ 10,227,260  $ 116,664  4.62 %

 Residential             2,019,855     25,471   5.06       2,499,853     33,868   5.44
 mortgage

 Retail                  3,426,864     44,733   5.27       3,703,234     52,340   5.71

 Total loans             13,924,978    160,099  4.65       16,430,347    202,872  4.99

 Investments and         7,150,430     61,875   3.46       5,528,730     66,157   4.79
 other

 Total earning           21,075,408    221,974  4.24       21,959,077    269,029  4.94
 assets

 Other assets, net       2,076,359                         2,296,706

 Total assets          $ 23,151,767                      $ 24,255,783

 Interest-bearing
 liabilities:

 Savings deposits      $ 858,440     $ 250      0.12 %   $ 857,111     $ 322      0.15 %

 Interest-bearing        2,920,510     1,779    0.25       1,699,989     829      0.20
 demand deposits

 Money market            6,242,934     8,221    0.53       4,945,174     11,566   0.95
 deposits

 Time deposits,
 excluding Brokered      3,451,638     17,453   2.05       3,993,154     30,056   3.05
 CDs

 Total
 interest-bearing        13,473,522    27,703   0.83       11,495,428    42,773   1.51
 deposits, excluding
 Brokered CDs

 Brokered CDs            660,361       1,042    0.64       864,185       3,826    1.80

 Total
 interest-bearing        14,133,883    28,745   0.82       12,359,613    46,599   1.53
 deposits

 Wholesale funding       2,837,001     17,973   2.55       6,098,266     26,608   1.76

 Total
 interest-bearing        16,970,884    46,718   1.11       18,457,879    73,207   1.61
 liabilities

 Noninterest-bearing     3,010,041                         2,686,363
 demand deposits

 Other liabilities       25,768                            211,938

 Stockholders'           3,145,074                         2,899,603
 equity

 Total liabilities
 and stockholders'     $ 23,151,767                      $ 24,255,783
 equity

 Net interest income                 $ 175,256  3.13 %                 $ 195,822  3.33 %
 and rate spread (1)

 Net interest margin                            3.35 %                            3.59 %
 (1)

 Taxable equivalent                  $ 6,034                           $ 6,544
 adjustment

 Net Interest Income
 Analysis - Taxable
 Equivalent Basis

 Associated            Three months ended March 31,      Three months ended December 31,
 Banc-Corp             2010                              2009

                       Average       Interest   Average  Average       Interest   Average

 (in thousands)        Balance       Income /   Yield /  Balance       Income /   Yield /
                                     Expense    Rate                   Expense    Rate

 Earning assets:

 Loans: (1) (2) (3)

 Commercial            $ 8,478,259   $ 89,895   4.29 %   $ 9,037,436   $ 100,124  4.40 %

 Residential             2,019,855     25,471   5.06       2,108,755     27,316   5.17
 mortgage

 Retail                  3,426,864     44,733   5.27       3,458,916     45,980   5.29

 Total loans             13,924,978    160,099  4.65       14,605,107    173,420  4.72

 Investments and         7,150,430     61,875   3.46       5,894,118     62,978   4.27
 other

 Total earning           21,075,408    221,974  4.24       20,499,225    236,398  4.59
 assets

 Other assets, net       2,076,359                         2,274,351

 Total assets          $ 23,151,767                      $ 22,773,576

 Interest-bearing
 liabilities:

 Savings deposits      $ 858,440     $ 250      0.12 %   $ 869,996     $ 344      0.16 %

 Interest-bearing        2,920,510     1,779    0.25       2,605,242     1,630    0.25
 demand deposits

 Money market            6,242,934     8,221    0.53       5,658,251     8,463    0.59
 deposits

 Time deposits,
 excluding Brokered      3,451,638     17,453   2.05       3,671,087     20,215   2.18
 CDs

 Total
 interest-bearing        13,473,522    27,703   0.83       12,804,576    30,652   0.95
 deposits, excluding
 Brokered CDs

 Brokered CDs            660,361       1,042    0.64       526,729       819      0.62

 Total
 interest-bearing        14,133,883    28,745   0.82       13,331,305    31,471   0.94
 deposits

 Wholesale funding       2,837,001     17,973   2.55       3,332,642     20,386   2.43

 Total
 interest-bearing        16,970,884    46,718   1.11       16,663,947    51,857   1.24
 liabilities

 Noninterest-bearing     3,010,041                         3,075,729
 demand deposits

 Other liabilities       25,768                            135,768

 Stockholders'           3,145,074                         2,898,132
 equity

 Total liabilities
 and stockholders'     $ 23,151,767                      $ 22,773,576
 equity

 Net interest income                 $ 175,256  3.13 %                 $ 184,541  3.35 %
 and rate spread (1)

 Net interest margin                            3.35 %                            3.59 %
 (1)

 Taxable equivalent                  $ 6,034                           $ 6,188
 adjustment

 (1) The yield on tax exempt loans and securities is computed on a taxable equivalent
 basis using a tax rate of 35% for all periods presented and is net of the effects of
 certain disallowed interest deductions.

 (2) Nonaccrual loans and loans held for sale have been included in the average balances.

 (3) Interest income includes net loan fees.



 Financial
 Summary and
 Comparison

 Associated
 Banc-Corp

 Period End Loan                               Mar10 vs                                            Mar10 vs
 Composition                                   Dec09                                               Mar09

                   Mar 31, 2010  Dec 31, 2009  % Change  Sept 30,      Jun 30, 2009  Mar 31, 2009  % Change
                                                         2009

 Commercial,
 financial &       $ 3,099,265   $ 3,450,632   (10.2 %)  $ 3,613,457   $ 3,904,925   $ 4,160,274   (25.5 %)
 agricultural

 Commercial real     3,699,139     3,817,066   (3.1  %)    3,902,340     3,737,749     3,575,301   3.5   %
 estate

 Real estate -       1,281,868     1,397,493   (8.3  %)    1,611,857     1,963,919     2,228,090   (42.5 %)
 construction

 Lease financing     87,568        95,851      (8.6  %)    102,130       110,262       116,100     (24.6 %)

 Total commercial    8,167,840     8,761,042   (6.8  %)    9,229,784     9,716,855     10,079,765  (19.0 %)

 Home equity         2,468,587     2,546,167   (3.0  %)    2,591,262     2,656,747     2,784,248   (11.3 %)

 Installment         759,025       873,568     (13.1 %)    885,970       844,065       853,214     (11.0 %)

 Total retail        3,227,612     3,419,735   (5.6  %)    3,477,232     3,500,812     3,637,462   (11.3 %)

 Residential         1,903,869     1,947,848   (2.3  %)    2,058,581     2,092,440     2,200,725   (13.5 %)
 mortgage

 Total loans       $ 13,299,321  $ 14,128,625  (5.9  %)  $ 14,765,597  $ 15,310,107  $ 15,917,952  (16.5 %)

 Period End                                    Mar10 vs                                            Mar10 vs
 Deposit                                       Dec09                                               Mar09
 Composition

                   Mar 31, 2010  Dec 31, 2009  % Change  Sept 30,      Jun 30, 2009  Mar 31, 2009  % Change
                                                         2009

 Demand            $ 3,023,247   $ 3,274,973   (7.7  %)  $ 2,984,486   $ 2,846,570   $ 2,818,088   7.3   %

 Savings             897,740       845,509     6.2   %     871,539       898,527       895,310     0.3   %

 Interest-bearing    2,939,390     3,099,358   (5.2  %)    2,395,429     2,242,800     1,796,724   63.6  %
 demand

 Money market        6,522,901     5,806,661   12.3  %     5,724,418     5,410,498     5,410,095   20.6  %

 Brokered CDs        742,119       141,968     422.7 %     653,090       930,582       922,491     (19.6 %)

 Other time          3,371,390     3,560,144   (5.3  %)    3,817,147     3,991,414     4,030,481   (16.4 %)
 deposits

 Total deposits    $ 17,496,787  $ 16,728,613  4.6   %   $ 16,446,109  $ 16,320,391  $ 15,873,189  10.2  %

 Network
 transaction
 deposits
 included above    $ 2,641,648   $ 1,926,539   37.1  %   $ 1,767,271   $ 1,605,722   $ 1,759,656   50.1  %
 in
 interest-bearing
 demand and money
 market

 Customer repo     $ 188,314     $ 195,858     (3.9  %)  $ 242,575     $ 269,809     $ 333,706     (43.6 %)
 sweeps (a)

 (a) Included within short-term borrowings.



    Source: Associated Banc-Corp
Contact: Associated Banc-Corp Investors: Joseph B. Selner, Chief Financial Officer 920-491-7120 Media: Janet L. Ford, SVP Public Relations Director 414-278-1890
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