Associated Banc-Corp (ASB) 8-K Associated announces Second Quarter 2009 Results

Exhibit 99.1

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

Associated announces Second Quarter 2009 Results

• Net loss to common shareholders of $24.7 million for the second quarter compared to net income of $35.4 million for the first quarter of 2009

• Net income available to common shareholders of $10.7 million for the six months ended June 30, 2009

• Provision for loan losses of $155.0 million exceeded net charge offs of $61.1 million by $93.9 million, increasing the allowance for loan losses to 2.66% of loans at June 30, 2009, up from 1.97% at March 31, 2009

• FDIC special assessment expense of $11.3 million was recorded during the quarter

• Total deposits grew by 7.7% to $16.3 billion at June 30, 2009 compared to $15.2 billion at December 31, 2008 and were up 22.0% from $13.4 billion at June 30, 2008

• Tangible common equity ratio of 6.09% compared to 6.10% at March 31, 2009

GREEN BAY, Wis. —July 16, 2009 — Associated Banc-Corp (NASDAQ: ASBC) today reported a 2009 second quarter net loss to common shareholders of $24.7 million, or $0.19 per common share after including a $7.3 million dividend to preferred shareholders. This compares to net income of $35.4 million, or $0.28 per common share for the first quarter of 2009, and net income of $47.4 million, or $0.37 per common share, for the second quarter of 2008.

Net income available to common shareholders was $10.7 million, or $0.08 per common share, for the six months ended June 30, 2009, compared to net income of $113.8 million, or $0.89 per common share, for the first half of 2008.

The provision for loan losses for the quarter was $155.0 million compared to $105.4 million for the first quarter of 2009, and $59.0 million for the same period one year ago. Net charge offs for the quarter were $61.1 million compared to $57.6 million for the first quarter of 2009, and $37.0 million for the second quarter of 2008. Nonperforming loans were $733.4 million at June 30, 2009 compared to $452.2 million at March 31, 2009. The higher provision is primarily due to further deterioration of existing construction and commercial real estate credits and declining commercial real estate collateral values.

“The higher than anticipated provision is a result of the continued weakness in the economy and related stress on our customers,” said Associated Chairman and CEO Paul S. Beideman. “While we believe loan loss provisions and charge offs will remain elevated, we expect the pace of deterioration to moderate in future quarters.”

Net interest income for the quarter was $179.1 million compared to $189.3 million for the first quarter of 2009 and $172.7 million for the same quarter a year ago. The company’s net interest margin was 3.40% compared to 3.59% at March 31, 2009 and 3.65% at June 30, 2008. The challenging economic climate had a negative impact on the company’s net interest margin during the quarter. Specifically, the lower net interest margin was due to an increase in the level of nonperforming loans along with lower loan balances and higher investment securities prepayments which were reinvested at lower spreads. These factors were partially offset by improved deposit pricing and higher spreads on new and renewed loans.

— more —

ASBC 2Q ’09page 2 of 2

On average, loans were $16.1 billion for the second quarter of 2009 compared to $16.4 billion for the first quarter of 2009 as the company continues to experience declines in both commercial and retail balances. Deposits, on average, were $16.1 billion for the second quarter of 2009, up $1.1 billion compared to first quarter 2009 and up $2.6 billion for the same period one year ago.

Mortgage loans originated for sale during the second quarter continued to be strong at $1.3 billion, an increase of $255.4 million from the first quarter of 2009 and up $903.4 million from the second quarter of 2008. For the second quarter 2009, net mortgage banking income was $28.3 million compared to $4.3 million for the first quarter of 2009. Second quarter mortgage banking results included a $9.6 million valuation recovery related to mortgage servicing rights, compared to a $12.3 million valuation charge in the first quarter of 2009.

Core fee-based revenue was $64.9 million for the second quarter of 2009 compared to $61.4 million for the first quarter of 2009 and $68.5 million in second quarter 2008. Year-over-year reductions occurred in consumer fee-based revenue due to weaker consumer activity, and equity market declines resulted in lower asset management and brokerage revenue.

Total noninterest expenses were $170.0 million, up $28.8 million from $141.3 million in the first quarter 2009. Second quarter 2009 noninterest expenses were higher in several categories, including FDIC insurance costs which increased $12.3 million largely due to an $11.3 million special assessment imposed by the Federal Deposit Insurance Corporation (FDIC). Other significant increases include foreclosure and OREO expenses, up $8.6 million primarily due to a $7 million write-down on a foreclosed property, and a $1.3 million increase in legal expenses due to an increased level of loan work outs. The efficiency ratio increased to 58.65% in the second quarter of 2009, up from 51.31% in the previous quarter and 50.75% in the second quarter 2008.

Total income tax benefit was $26.6 million for the second quarter of 2009, an increase of $15.5 million from the $11.1 million benefit in the first quarter of 2009. The increase in income tax benefit is primarily due to the level of pretax income (loss) between quarters. In addition, the company recorded a $17.0 million net decrease in the valuation allowance on and changes to State deferred tax assets in the first quarter of 2009. In the second quarter, the company recorded a $5 million decrease in the valuation allowance on deferred tax assets.

Associated Banc-Corp (NASDAQ: ASBC) will host a conference call for investors and analysts at 3 p.m. Central Time (CT) Thursday, July 16, 2009. The toll-free dial-in number for the live call is 800-762-8779. The number for international callers is 480-248-5081. Participants should ask the operator for the Associated Banc-Corp second quarter 2009 earnings call, or for call ID number 4102400. A replay of the call will be available starting at 6 p.m. CT on July 16, 2009 through 12:00 midnight CT on August 16, 2009 by calling 800-406-7325 (toll-free) domestically or 303-590-3030 internationally. The call ID number (replay pin number), 4102400, is required to access the replay.

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $24 billion. Associated has approximately 300 banking offices serving approximately 160 communities in Wisconsin, Illinois, and Minnesota. The company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.associatedbank.com.

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

Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp

	June 30,			December 31,			Jun09 vs Dec08			June 30,			Jun09 vs Jun08
(in thousands)	2009			2008			% Change			2008			% Change
Assets
Cash and due from banks	$	463,477		$	533,338			(13.1	%)	$	600,972			(22.9	%)
Interest-bearing deposits in other financial institutions		12,910			12,649			2.1	%		24,448			(47.2	%)
Federal funds sold and securities purchased under agreements to resell		34,679			24,741			40.2	%		35,852			(3.3	%)
Securities available for sale, at fair value		6,000,491			5,349,417			12.2	%		3,574,373			67.9	%
Loans held for sale		424,833			87,084			387.8	%		52,058			716.1	%
Loans		15,310,107			16,283,908			(6.0	%)		16,149,327			(5.2	%)
Allowance for loan losses		(407,167	)		(265,378	)		53.4	%		(229,605	)		77.3	%
Loans, net		14,902,940			16,018,530			(7.0	%)		15,919,722			(6.4	%)
Premises and equipment, net		185,794			190,942			(2.7	%)		191,634			(3.0	%)
Goodwill		929,168			929,168			0.0	%		929,168			0.0	%
Other intangible assets, net		91,588			80,165			14.2	%		92,621			(1.1	%)
Other assets		967,687			966,033			0.2	%		881,856			9.7	%
Total assets	$	24,013,567		$	24,192,067			(0.7	%)	$	22,302,704			7.7	%
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,846,570		$	2,814,079			1.2	%	$	2,602,026			9.4	%
Interest-bearing deposits, excluding Brokered CDs		12,543,239			11,551,181			8.6	%		10,378,285			20.9	%
Brokered CDs		930,582			789,536			17.9	%		398,423			133.6	%
Total deposits		16,320,391			15,154,796			7.7	%		13,378,734			22.0	%
Short-term borrowings		2,712,962			3,703,936			(26.8	%)		4,923,462			(44.9	%)
Long-term funding		1,761,580			1,861,647			(5.4	%)		1,436,349			22.6	%
Accrued expenses and other liabilities		344,866			595,185			(42.1	%)		210,277			64.0	%
Total liabilities		21,139,799			21,315,564			(0.8	%)		19,948,822			6.0	%
Stockholders’ Equity
Preferred equity		509,535			508,008			0.3	%		—			N/M
Common stock		1,284			1,281			0.2	%		1,279			0.4	%
Surplus		1,078,633			1,073,218			0.5	%		1,048,158			2.9	%
Retained earnings		1,262,047			1,293,941			(2.5	%)		1,324,476			(4.7	%)
Accumulated other comprehensive income (loss)		23,352			55			N/M			(20,031	)		(216.6	%)
Treasury stock		(1,083	)		—			N/M			—			N/M
Total stockholders’ equity		2,873,768			2,876,503			(0.1	%)		2,353,882			22.1	%
Total liabilities and stockholders’ equity	$	24,013,567		$	24,192,067			(0.7	%)	$	22,302,704			7.7	%

N/M = Not meaningful.

Consolidated Statements of Income (Unaudited)
Associated Banc-Corp

	For The Three Months Ended									For The Six Months Ended,
	June 30,						Quarter			June 30,						Year-to-Date
(in thousands, except per share amounts)	2009			2008			% Change			2009			2008			% Change
Interest Income
Interest and fees on loans	$	194,352		$	237,727			(18.2	%)	$	396,377		$	492,780			(19.6	%)
Interest and dividends on investment securities and deposits in other financial institutions:
Taxable		46,688			31,878			46.5	%		97,591			63,230			54.3	%
Tax-exempt		8,819			9,776			(9.8	%)		18,313			20,035			(8.6	%)
Interest on federal funds sold and securities purchased under agreements to resell		51			213			(76.1	%)		114			419			(72.8	%)
Total interest income		249,910			279,594			(10.6	%)		512,395			576,464			(11.1	%)
Interest Expense
Interest on deposits		44,993			63,655			(29.3	%)		91,592			145,161			(36.9	%)
Interest on short-term borrowings		5,088			24,363			(79.1	%)		10,242			52,536			(80.5	%)
Interest on long-term funding		20,691			18,844			9.8	%		42,145			40,918			3.0	%
Total interest expense		70,772			106,862			(33.8	%)		143,979			238,615			(39.7	%)
Net Interest Income		179,138			172,732			3.7	%		368,416			337,849			9.0	%
Provision for loan losses		155,022			59,001			162.7	%		260,446			82,003			217.6	%
Net interest income after provision for loan losses		24,116			113,731			(78.8	%)		107,970			255,846			(57.8	%)
Noninterest Income
Trust service fees		8,569			10,078			(15.0	%)		17,046			20,152			(15.4	%)
Service charges on deposit accounts		29,671			30,129			(1.5	%)		56,876			53,813			5.7	%
Card-based and other nondeposit fees		11,858			12,301			(3.6	%)		22,032			23,726			(7.1	%)
Retail commissions		14,829			16,004			(7.3	%)		30,341			32,119			(5.5	%)
Mortgage banking, net		28,297			5,395			424.5	%		32,564			12,340			163.9	%
Treasury management fees, net		2,393			3,502			(31.7	%)		5,019			5,488			(8.5	%)
Bank owned life insurance income		3,161			4,997			(36.7	%)		8,933			9,858			(9.4	%)
Asset sale (losses), net		(1,287	)		(731	)		76.1	%		(2,394	)		(1,187	)		101.7	%
Investment securities gains (losses), net		(1,385	)		(718	)		92.9	%		9,211			(3,658	)		N/M
Other		5,835			5,668			2.9	%		11,290			16,602			(32.0	%)
Total noninterest income		101,941			86,625			17.7	%		190,918			169,253			12.8	%
Noninterest Expense
Personnel expense		81,171			78,066			4.0	%		158,269			153,709			3.0	%
Occupancy		12,341			12,026			2.6	%		25,222			25,290			(0.3	%)
Equipment		4,670			4,653			0.4	%		9,259			9,250			0.1	%
Data processing		8,126			8,250			(1.5	%)		15,723			15,371			2.3	%
Business development and advertising		4,943			5,137			(3.8	%)		9,680			10,178			(4.9	%)
Other intangible amortization		1,385			1,568			(11.7	%)		2,771			3,137			(11.7	%)
Legal and professional fees		5,586			2,944			89.7	%		9,827			5,717			71.9	%
Foreclosure/OREO expense		13,576			2,573			427.6	%		18,589			4,542			309.3	%
FDIC expense		18,090			397			N/M			23,865			803			N/M
Other		20,143			20,207			(0.3	%)		38,090			44,136			(13.7	%)
Total noninterest expense		170,031			135,821			25.2	%		311,295			272,133			14.4	%
Income (loss) before income taxes		(43,974	)		64,535			(168.1	%)		(12,407	)		152,966			(108.1	%)
Income tax expense (benefit)		(26,633	)		17,176			(255.1	%)		(37,791	)		39,142			(196.5	%)
Net income (loss)		(17,341	)		47,359			(136.6	%)	$	25,384		$	113,824			(77.7	%)
Preferred stock dividends and discount		7,331			—			N/M			14,652			—			N/M
Net income (loss) available to common equity	$	(24,672	)	$	47,359			(152.1	%)	$	10,732		$	113,824			(90.6	%)
Earnings (Loss) Per Common Share:
Basic	$	(0.19	)	$	0.37			(151.4	%)	$	0.08		$	0.89			(91.0	%)
Diluted	$	(0.19	)	$	0.37			(151.4	%)	$	0.08		$	0.89			(91.0	%)
Average Common Shares Outstanding:
Basic		127,861			127,433			0.3	%		127,850			127,365			0.4	%
Diluted		127,861			127,909			(0.0	%)		127,856			127,849			0.0	%

N/M = Not meaningful.

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

(in thousands, except per share amounts)	2Q09			1Q09			4Q08			3Q08			2Q08
Interest Income
Interest and fees on loans	$	194,352		$	202,025		$	230,872		$	229,001		$	237,727
Interest and dividends on investment securities and deposits in other financial institutions:
Taxable		46,688			50,903			38,032			32,209			31,878
Tax-exempt		8,819			9,494			9,811			9,887			9,776
Interest on federal funds sold and securities purchased under agreements to resell		51			63			154			279			213
Total interest income		249,910			262,485			278,869			271,376			279,594
Interest Expense
Interest on deposits		44,993			46,599			56,402			61,743			63,655
Interest on short-term borrowings	��	5,088			5,154			10,090			23,958			24,363
Interest on long-term funding		20,691			21,454			20,595			19,158			18,844
Total interest expense		70,772			73,207			87,087			104,859			106,862
Net Interest Income		179,138			189,278			191,782			166,517			172,732
Provision for loan losses		155,022			105,424			65,044			55,011			59,001
Net interest income after provision for loan losses		24,116			83,854			126,738			111,506			113,731
Noninterest Income
Trust service fees		8,569			8,477			8,248			10,020			10,078
Service charges on deposit accounts		29,671			27,205			30,946			33,609			30,129
Card-based and other nondeposit fees		11,858			10,174			12,297			12,517			12,301
Retail commissions		14,829			15,512			15,541			14,928			16,004
Total core fee-based revenue		64,927			61,368			67,032			71,074			68,512
Mortgage banking, net		28,297			4,267			(1,227	)		3,571			5,395
Treasury management fees, net		2,393			2,626			(33	)		1,935			3,502
Bank owned life insurance income		3,161			5,772			4,711			5,235			4,997
Asset sale gains (losses), net		(1,287	)		(1,107	)		(1,054	)		573			(731	)
Investment securities gains (losses), net		(1,385	)		10,596			(35,298	)		(13,585	)		(718	)
Other		5,835			5,455			6,943			6,520			5,668
Total noninterest income		101,941			88,977			41,074			75,323			86,625
Noninterest Expense
Personnel expense		81,171			77,098			77,374			78,395			78,066
Occupancy		12,341			12,881			13,134			12,037			12,026
Equipment		4,670			4,589			4,785			5,088			4,653
Data processing		8,126			7,597			7,446			7,634			8,250
Business development and advertising		4,943			4,737			6,047			5,175			5,137
Other intangible amortization		1,385			1,386			1,564			1,568			1,568
Legal and professional fees		5,586			4,241			5,311			3,538			2,944
Foreclosure/OREO expense		13,576			5,013			6,716			2,427			2,573
FDIC expense		18,090			5,775			930			791			397
Other		20,143			17,947			25,443			19,924			20,207
Total noninterest expense		170,031			141,264			148,750			136,577			135,821
Income (loss) before income taxes		(43,974	)		31,567			19,062			50,252			64,535
Income tax expense (benefit)		(26,633	)		(11,158	)		2,203			12,483			17,176
Net income (loss)		(17,341	)		42,725			16,859			37,769			47,359
Preferred stock dividends and discount		7,331			7,321			3,250			—			—
Net income (loss) available to common equity	$	(24,672	)	$	35,404		$	13,609		$	37,769		$	47,359
Earnings (Loss) Per Common Share:
Basic	$	(0.19	)	$	0.28		$	0.11		$	0.30		$	0.37
Diluted	$	(0.19	)	$	0.28		$	0.11		$	0.30		$	0.37
Average Common Shares Outstanding:
Basic		127,861			127,839			127,717			127,553			127,433
Diluted		127,861			127,845			127,810			127,622			127,909

Selected Quarterly Information
Associated Banc-Corp

(in thousands, except per share and full time equivalent employee data)	YTD 2009			YTD 2008			2nd Qtr 2009			1st Qtr 2009			4th Qtr 2008			3rd Qtr 2008			2nd Qtr 2008
Summary of Operations
Net interest income	$	368,416		$	337,849		$	179,138		$	189,278		$	191,782		$	166,517		$	172,732
Provision for loan losses		260,446			82,003			155,022			105,424			65,044			55,011			59,001
Asset sale gains (losses), net		(2,394	)		(1,187	)		(1,287	)		(1,107	)		(1,054	)		573			(731	)
Investment securities gains (losses), net		9,211			(3,658	)		(1,385	)		10,596			(35,298	)		(13,585	)		(718	)
Noninterest income (excluding securities & asset gains)		184,101			174,098			104,613			79,488			77,426			88,335			88,074
Noninterest expense		311,295			272,133			170,031			141,264			148,750			136,577			135,821
Income before income taxes		(12,407	)		152,966			(43,974	)		31,567			19,062			50,252			64,535
Income tax expense (benefit)		(37,791	)		39,142			(26,633	)		(11,158	)		2,203			12,483			17,176
Net income (loss)		25,384			113,824			(17,341	)		42,725			16,859			37,769			47,359
Net income (loss) available to common equity		10,732			113,824			(24,672	)		35,404			13,609			37,769			47,359
Taxable equivalent adjustment		12,694			13,910			6,150			6,544			6,902			6,899			6,814
Per Common Share Data
Net income (loss):
Basic	$	0.08		$	0.89		$	(0.19	)	$	0.28		$	0.11		$	0.30		$	0.37
Diluted		0.08			0.89			(0.19	)		0.28			0.11			0.30			0.37
Dividends		0.37			0.63			0.05			0.32			0.32			0.32			0.32
Market Value:
High	$	21.39		$	29.23		$	19.00		$	21.39		$	24.21		$	25.92		$	29.23
Low		10.60			19.29			12.50			10.60			15.72			14.85			19.29
Close		12.50			19.29			12.50			15.45			20.93			19.95			19.29
Book value		18.49			18.46			18.49			18.68			18.54			18.52			18.46
Performance Ratios (annualized)
Earning assets yield		4.82	%		6.07	%		4.70	%		4.94	%		5.57	%		5.58	%		5.82	%
Interest-bearing liabilities rate		1.59			2.86			1.57			1.61			2.00			2.44			2.53
Net interest margin		3.49			3.61			3.40			3.59			3.88			3.48			3.65
Return on average assets		0.21			1.05			(0.29	)		0.71			0.30			0.68			0.87
Return on average equity		1.76			9.67			(2.40	)		5.98			2.58			6.38			8.01
Return on average tangible common equity (1)		1.51			16.36			(6.88	)		10.05			3.83			10.83			13.51
Efficiency ratio (2)		55.08			51.75			58.65			51.31			53.87			52.18			50.75
Effective tax rate		304.59			25.59			60.57			(35.35	)		11.56			24.84			26.61
Dividend payout ratio (3)		462.50			70.79			N/M			114.29			290.91			106.67			86.49
Average Balances
Assets	$	24,159,647		$	21,712,707		$	24,064,567		$	24,255,783		$	22,646,421		$	22,072,948		$	21,975,451
Earning assets		21,902,825			19,515,429			21,847,191			21,959,077			20,436,483			19,884,434			19,754,651
Interest-bearing liabilities		18,290,716			16,801,778			18,125,389			18,457,879			17,363,481			17,107,551			16,992,508
Loans		16,275,353			15,914,526			16,122,063			16,430,347			16,285,881			16,203,717			16,120,732
Deposits		15,576,244			13,568,535			16,100,686			15,045,976			14,395,626			13,710,297			13,493,511
Wholesale funding		5,484,245			5,622,248			4,876,970			6,098,266			5,496,248			5,876,051			5,950,699
Common stockholders’ equity		2,396,020			2,367,799			2,400,664			2,391,325			2,376,639			2,353,606			2,377,841
Stockholders’ equity		2,904,679			2,367,799			2,909,700			2,899,603			2,602,917			2,353,606			2,377,841
Common stockholders’ equity/assets		9.92	%		10.91	%		9.98	%		9.86	%		10.49	%		10.66	%		10.82	%
Stockholders’ equity / assets		12.02	%		10.91	%		12.09	%		11.95	%		11.49	%		10.66	%		10.82	%
At Period End
Assets							$	24,013,567		$	24,349,725		$	24,192,067		$	22,487,394		$	22,302,704
Loans								15,310,107			15,917,952			16,283,908			16,272,487			16,149,327
Allowance for loan losses								407,167			313,228			265,378			246,189			229,605
Goodwill								929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights, net								59,762			39,754			45,568			53,977			54,725
Other intangible assets								31,826			33,211			34,597			36,161			37,896
Deposits								16,320,391			15,873,189			15,154,796			14,245,667			13,378,734
Wholesale funding								4,474,542			5,326,734			5,565,583			5,667,737			6,359,811
Stockholders’ equity								2,873,768			2,897,169			2,876,503			2,364,247			2,353,882
Stockholders’ equity / assets								11.97	%		11.90	%		11.89	%		10.51	%		10.55	%
Tangible common equity / tangible assets (4)								6.09	%		6.10	%		6.05	%		6.50	%		6.50	%
Tangible equity/tangible assets (5)								8.30	%		8.27	%		8.23	%		6.50	%		6.50	%
Shares outstanding, end of period								127,861			127,860			127,762			127,646			127,537
Selected trend information
Average full time equivalent employees								5,116			5,143			5,109			5,141			5,179
Trust assets under management, at market value							$	5,000,000		$	4,800,000		$	5,100,000		$	5,600,000		$	5,900,000
Mortgage loans originated for sale during period								1,335,175			1,079,732			247,465			217,993			431,757
Mortgage portfolio serviced for others								6,904,000			6,582,000			6,606,000			6,596,000			6,584,000
Mortgage servicing rights, net / Portfolio serviced for others								0.87	%		0.60	%		0.69	%		0.82	%		0.83	%

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.

Financial Summary and Comparison
Associated Banc-Corp

	Three months ended									Six months ended
	June 30,									June 30,
(in thousands)	2009			2008			% Change			2009			2008			% Change
Allowance for Loan Losses
Beginning balance	$	313,228		$	207,602			50.9	%	$	265,378		$	200,570			32.3	%
Provision for loan losses		155,022			59,001			162.7	%		260,446			82,003			217.6	%
Charge offs		(63,325	)		(38,238	)		65.6	%		(123,499	)		(57,732	)		113.9	%
Recoveries		2,242			1,240			80.8	%		4,842			4,764			1.6	%
Net charge offs		(61,083	)		(36,998	)		65.1	%		(118,657	)		(52,968	)		124.0	%
Ending balance	$	407,167		$	229,605			77.3	%	$	407,167		$	229,605			77.3	%

Credit Quality

							Jun09 vs Mar09												Jun09 vs Jun08
	Jun 30, 2009			Mar 31, 2009			% Change			Dec 31, 2008			Sept 30, 2008			Jun 30, 2008			% Change
Nonaccrual loans	$	700,514		$	433,246			61.7	%	$	326,857		$	290,039		$	277,100			152.8	%
Loans 90 or more days past due and still accruing		19,785			16,002			23.6	%		13,811			14,631			11,762			68.2	%
Restructured loans		13,089			2,927			347.2	%		—			—			—			N/M
Total nonperforming loans		733,388			452,175			62.2	%		340,668			304,670			288,862			153.9	%
Other real estate owned (OREO)		51,633			54,883			(5.9	%)		48,710			46,473			46,579			10.9	%
Total nonperforming assets	$	785,021		$	507,058			54.8	%	$	389,378		$	351,143		$	335,441			134.0	%
Provision for loan losses		155,022			105,424			47.0	%		65,044			55,011			59,001			162.7	%
Net charge offs		61,083			57,574			6.1	%		45,855			38,427			36,998			65.1	%
Allowance for loan losses / loans		2.66	%		1.97	%					1.63	%		1.51	%		1.42	%
Allowance for loan losses / nonperforming loans		55.52			69.27						77.90			80.81			79.49
Nonperforming loans / total loans		4.79			2.84						2.09			1.87			1.79
Nonperforming assets / total loans plus OREO		5.11			3.17						2.38			2.15			2.07
Nonperforming assets / total assets		3.27			2.08						1.61			1.56			1.50
Net charge offs / average loans (annualized)		1.52			1.42						1.12			0.94			0.92
Year-to-date net charge offs / average loans		1.47			1.42						0.85			0.76			0.67
Nonperforming loans by type:
Commercial, financial & agricultural	$	187,943		$	102,257			83.8	%	$	104,664		$	85,995		$	78,731			138.7	%
Commercial real estate		165,929			100,838			64.6	%		62,423			52,875			42,280			292.5	%
Real estate — construction		264,402			152,008			73.9	%		90,048			98,205			110,717			138.8	%
Lease financing		1,929			1,707			13.0	%		187			83			522			269.5	%
Total commercial		620,203			356,810			73.8	%		257,322			237,158			232,250			167.0	%
Home equity		38,474			35,224			9.2	%		31,035			25,372			23,555			63.3	%
Installment		7,545			6,755			11.7	%		7,155			6,035			5,184			45.5	%
Total retail		46,019			41,979			9.6	%		38,190			31,407			28,739			60.1	%
Residential mortgage		67,166			53,386			25.8	%		45,156			36,105			27,873			141.0	%
Total nonperforming loans	$	733,388		$	452,175			62.2	%	$	340,668		$	304,670		$	288,862			153.9	%

Period End Loan Composition

					Jun09 vs Mar09									Jun09 vs Jun08
	Jun 30, 2009		Mar 31, 2009		% Change			Dec 31, 2008		Sept 30, 2008		Jun 30, 2008		% Change
Commercial, financial & agricultural	$	3,904,925	$	4,160,274		(6.1	%)	$	4,388,691	$	4,343,208	$	4,423,192		(11.7	%)
Commercial real estate		3,737,749		3,575,301		4.5	%		3,566,551		3,534,791		3,583,877		4.3	%
Real estate — construction		1,963,919		2,228,090		(11.9	%)		2,260,888		2,363,116		2,351,401		(16.5	%)
Lease financing		110,262		116,100		(5.0	%)		122,113		125,907		124,661		(11.6	%)
Total commercial		9,716,855		10,079,765		(3.6	%)		10,338,243		10,367,022		10,483,131		(7.3	%)
Home equity		2,656,747		2,784,248		(4.6	%)		2,883,317		2,892,952		2,757,684		(3.7	%)
Installment		844,065		853,214		(1.1	%)		827,303		842,741		826,895		2.1	%
Total retail		3,500,812		3,637,462		(3.8	%)		3,710,620		3,735,693		3,584,579		(2.3	%)
Residential mortgage		2,092,440		2,200,725		(4.9	%)		2,235,045		2,169,772		2,081,617		0.5	%
Total loans	$	15,310,107	$	15,917,952		(3.8	%)	$	16,283,908	$	16,272,487	$	16,149,327		(5.2	%)

Period End Deposit Composition

					Jun09 vs Mar09									Jun09 vs Jun08
	Jun 30, 2009		Mar 31, 2009		% Change			Dec 31, 2008		Sept 30, 2008		Jun 30, 2008		% Change
Demand	$	2,846,570	$	2,818,088		1.0	%	$	2,814,079	$	2,545,779	$	2,602,026		9.4	%
Savings		898,527		895,310		0.4	%		841,129		888,731		921,000		(2.4	%)
Interest-bearing demand		2,242,800		1,796,724		24.8	%		1,796,405		1,667,640		1,697,910		32.1	%
Money market		5,410,498		5,410,095		0.0	%		4,926,088		4,608,686		3,917,505		38.1	%
Brokered CDs		930,582		922,491		0.9	%		789,536		579,607		398,423		133.6	%
Other time deposits		3,991,414		4,030,481		(1.0	%)		3,987,559		3,955,224		3,841,870		3.9	%
Total deposits	$	16,320,391	$	15,873,189		2.8	%	$	15,154,796	$	14,245,667	$	13,378,734		22.0	%
Network transaction deposits included above in interest-bearing demand and money market	$	1,605,722	$	1,759,656		(8.7	%)	$	1,530,675	$	1,356,616	$	620,440		158.8	%
Customer repo sweeps (a)	$	269,809	$	333,706		(19.1	%)	$	505,788	$	657,032	$	667,720		(59.6	%)

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

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

	Six months ended June 30, 2009							Six months ended June 30, 2008
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	10,083,205	$	228,424		4.57	%	$	10,412,253	$	314,859		6.08	%
Residential mortgage		2,553,037		68,231		5.36			2,215,641		66,325		6.00
Retail		3,639,111		101,428		5.61			3,286,632		113,484		6.93
Total loans		16,275,353		398,083		4.92			15,914,526		494,668		6.24
Investments and other		5,627,472		127,006		4.51			3,600,903		95,706		5.32
Total earning assets		21,902,825		525,089		4.82			19,515,429		590,374		6.07
Other assets, net		2,256,822							2,197,278
Total assets	$	24,159,647						$	21,712,707
Interest-bearing liabilities:
Savings deposits	$	882,533	$	681		0.16	%	$	885,883	$	2,091		0.47	%
Interest-bearing demand deposits		1,836,187		1,867		0.21			1,802,280		9,765		1.09
Money market deposits		5,178,848		23,977		0.93			3,919,573		42,000		2.15
Time deposits, excluding Brokered CDs		4,004,253		58,277		2.93			3,968,095		80,970		4.10
Total interest-bearing deposits, excluding Brokered CDs		11,901,821		84,802		1.44			10,575,831		134,826		2.56
Brokered CDs		904,650		6,790		1.51			603,699		10,335		3.44
Total interest-bearing deposits		12,806,471		91,592		1.44			11,179,530		145,161		2.61
Wholesale funding		5,484,245		52,387		1.92			5,622,248		93,454		3.34
Total interest-bearing liabilities		18,290,716		143,979		1.59			16,801,778		238,615		2.86
Noninterest-bearing demand deposits		2,769,773							2,389,005
Other liabilities		194,479							154,125
Stockholders’ equity		2,904,679							2,367,799
Total liabilities and stockholders’ equity	$	24,159,647						$	21,712,707
Net interest income and rate spread (1)			$	381,110		3.23	%			$	351,759		3.21	%
Net interest margin (1)						3.49	%						3.61	%
Taxable equivalent adjustment			$	12,694						$	13,910

	Three months ended June 30, 2009							Three months ended June 30, 2008
	Average		Interest		Average			Average		Interest		Average
	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	9,940,732	$	111,760		4.51	%	$	10,501,226	$	150,134		5.75	%
Residential mortgage		2,605,638		34,363		5.28			2,195,007		32,530		5.94
Retail		3,575,693		49,088		5.50			3,424,499		56,010		6.57
Total loans		16,122,063		195,211		4.85			16,120,732		238,674		5.95
Investments and other		5,725,128		60,849		4.25			3,633,919		47,734		5.25
Total earning assets		21,847,191		256,060		4.70			19,754,651		286,408		5.82
Other assets, net		2,217,376							2,220,800
Total assets	$	24,064,567						$	21,975,451
Interest-bearing liabilities:
Savings deposits	$	907,677	$	359		0.16	%	$	910,930	$	1,009		0.45	%
Interest-bearing demand deposits		1,970,889		1,038		0.21			1,796,373		3,774		0.84
Money market deposits		5,409,953		12,412		0.92			3,864,739		17,546		1.83
Time deposits, excluding Brokered CDs		4,015,230		28,220		2.82			3,892,910		37,229		3.85
Total interest-bearing deposits, excluding Brokered CDs		12,303,749		42,029		1.37			10,464,952		59,558		2.29
Brokered CDs		944,670		2,964		1.26			576,857		4,097		2.86
Total interest-bearing deposits		13,248,419		44,993		1.36			11,041,809		63,655		2.32
Wholesale funding		4,876,970		25,779		2.12			5,950,699		43,207		2.92
Total interest-bearing liabilities		18,125,389		70,772		1.57			16,992,508		106,862		2.53
Noninterest-bearing demand deposits		2,852,267							2,451,702
Other liabilities		177,211							153,400
Stockholders’ equity		2,909,700							2,377,841
Total liabilities and stockholders’ equity	$	24,064,567						$	21,975,451
Net interest income and rate spread (1)			$	185,288		3.13	%			$	179,546		3.29	%
Net interest margin (1)						3.40	%						3.65	%
Taxable equivalent adjustment			$	6,150						$	6,814

(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.