Associated Banc-Corp (ASB) 8-K Associated Banc-Corp Reports First Quarter 2010 Results

Exhibit 99.1

NEWS RELEASE

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

Associated Banc-Corp Reports First Quarter 2010 Results

• $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

GREEN BAY, Wis. –April 22, 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.

- more -

ASSOCIATED REPORTS FIRST QUARTER 2010 RESULTS PAGE 2

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.

- more -

ASSOCIATED REPORTS FIRST QUARTER 2010 RESULTS PAGE 3

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 atwww.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 Dec09			March 31,			Mar10 vs Mar09
(in thousands)	2010			2009			% Change			2009			% Change
Assets
Cash and due from banks	$	284,882		$	770,816			(63.0	%)	$	378,645			(24.8	%)
Interest-bearing deposits in other financial institutions		1,998,528			26,091			N/M			12,527			N/M
Federal funds sold and securities purchased under agreements to resell		19,220			23,785			(19.2	%)		48,578			(60.4	%)
Investment securities available for sale, at fair value		5,267,372			5,835,533			(9.7	%)		5,314,617			(0.9	%)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		184,811			181,316			1.9	%		181,205			2.0	%
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 losses		(575,573	)		(573,533	)		0.4	%		(313,228	)		83.8	%
Loans, net		12,723,748			13,555,092			(6.1	%)		15,604,724			(18.5	%)
Premises and equipment, net		183,401			186,564			(1.7	%)		187,685			(2.3	%)
Goodwill		929,168			929,168			0.0	%		929,168			0.0	%
Other intangible assets, net		91,991			92,807			(0.9	%)		72,965			26.1	%
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 deposits	$	3,023,247		$	3,274,973			(7.7	%)	$	2,818,088			7.3	%
Interest-bearing deposits, excluding Brokered CDs		13,731,421			13,311,672			3.2	%		12,132,610			13.2	%
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 borrowings		575,564			1,226,853			(53.1	%)		3,365,130			(82.9	%)
Long-term funding		1,643,979			1,953,998			(15.9	%)		1,961,604			(16.2	%)
Accrued expenses and other liabilities		210,797			226,070			(6.8	%)		252,633			(16.6	%)
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 income		59,744			63,432			(5.8	%)		23,931			149.7	%
Treasury stock		(1,919	)		(706	)		N/M			(97	)		N/M
Total stockholders’ equity		3,180,509			2,738,608			16.1	%		2,897,169			9.8	%
Total liabilities and stockholders’ equity	$	23,107,636		$	22,874,142			1.0	%	$	24,349,725			(5.1	%)

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 resell		22			63			(65.1	%)
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 loan losses		3,877			83,854			(95.4	%)
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 equity	$	(33,754	)	$	35,404			(195.3	%)
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 amounts)	1Q10			4Q09			3Q09			2Q09			1Q09
Interest Income
Interest and fees on loans	$	159,291		$	172,624		$	183,264		$	194,352		$	202,025
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 purchased under agreements to resell		22			32			16			51			63
Total interest income		215,940			230,210			238,651			249,910			262,485
Interest Expense
Interest on deposits		28,745			31,471			37,811			44,993			46,599
Interest on short-term borrowings		2,026			3,062			2,895			5,088			5,154
Interest on long-term funding		15,947			17,324			18,709			20,691			21,454
Total interest expense		46,718			51,857			59,415			70,772			73,207
Net Interest Income		169,222			178,353			179,236			179,138			189,278
Provision for loan losses		165,345			394,789			95,410			155,022			105,424
Net interest income (loss) after provision for loan losses		3,877			(216,436	)		83,826			24,116			83,854
Noninterest Income
Trust service fees		9,356			9,906			9,057			8,569			8,477
Service charges on deposit accounts		26,059			29,213			30,829			29,671			27,205
Card-based and other nondeposit fees		10,820			12,359			11,586			11,858			10,174
Retail commissions		15,817			15,296			15,041			14,829			15,512
Total core fee-based revenue		62,052			66,774			66,513			64,927			61,368
Mortgage banking, net		5,407			9,227			(909	)		28,297			4,267
Capital market fees, net		130			291			226			2,393			2,626
Bank owned life insurance income		3,256			3,310			3,789			3,161			5,772
Asset sale losses, net		(1,641	)		(1,551	)		(126	)		(1,287	)		(1,107	)
Investment securities gains (losses), net		23,581			(395	)		(42	)		(1,385	)		10,596
Other		5,253			7,078			5,858			5,835			5,455
Total noninterest income		98,038			84,734			75,309			101,941			88,977
Noninterest Expense
Personnel expense		79,355			72,620			73,501			81,171			77,098
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 advertising		4,445			4,443			3,910			4,943			4,737
Other intangible amortization		1,253			1,386			1,386			1,385			1,386
Legal and professional fees		2,795			6,386			3,349			5,586			4,241
Foreclosure/OREO expense		7,729			10,852			8,688			13,576			5,013
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 expense		151,859			159,014			141,111			170,031			141,264
Income (loss) before income taxes		(49,944	)		(290,716	)		18,024			(43,974	)		31,567
Income tax expense (benefit)		(23,555	)		(117,479	)		2,030			(26,633	)		(11,158	)
Net income (loss)		(26,389	)		(173,237	)		15,994			(17,341	)		42,725
Preferred stock dividends and discount		7,365			7,354			7,342			7,331			7,321
Net income (loss) available to common equity	$	(33,754	)	$	(180,591	)	$	8,652		$	(24,672	)	$	35,404
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
equivalent employee data)	1st Qtr 2010			4th Qtr 2009			3rd Qtr 2009			2nd Qtr 2009			1st Qtr 2009
Summary of Operations
Net interest income	$	169,222		$	178,353		$	179,236		$	179,138		$	189,278
Provision for loan losses		165,345			394,789			95,410			155,022			105,424
Asset sale losses, net		(1,641	)		(1,551	)		(126	)		(1,287	)		(1,107	)
Investment securities gains (losses), net		23,581			(395	)		(42	)		(1,385	)		10,596
Noninterest income (excluding securities & asset gains)		76,098			86,680			75,477			104,613			79,488
Noninterest expense		151,859			159,014			141,111			170,031			141,264
Income (loss) before income taxes		(49,944	)		(290,716	)		18,024			(43,974	)		31,567
Income tax expense (benefit)		(23,555	)		(117,479	)		2,030			(26,633	)		(11,158	)
Net income (loss)		(26,389	)		(173,237	)		15,994			(17,341	)		42,725
Net income (loss) available to common equity		(33,754	)		(180,591	)		8,652			(24,672	)		35,404
Taxable equivalent adjustment		6,034			6,188			5,938			6,150			6,544
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 value		9.90			9.93			11.38			10.97			11.15
Performance Ratios (annualized)
Earning assets yield		4.24	%		4.59	%		4.62	%		4.70	%		4.94	%
Interest-bearing liabilities rate		1.11			1.24			1.36			1.57			1.61
Net interest margin		3.35			3.59			3.50			3.40			3.59
Return on average assets		(0.46	)		(3.02	)		0.27			(0.29	)		0.71
Return on average equity		(3.40	)		(23.72	)		2.19			(2.40	)		5.98
Return on average tangible common equity (1)		(8.17	)		(50.16	)		2.39			(6.88	)		10.05
Efficiency ratio (2)		60.42			58.63			54.14			58.65			51.31
Effective tax rate (benefit)		(47.16	)		(40.41	)		11.26			(60.57	)		(35.35	)
Dividend payout ratio (3)		N/M			N/M			71.43			N/M			114.29
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 liabilities		16,970,884			16,663,947			17,412,341			18,125,389			18,457,879
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 funding		2,837,001			3,332,642			4,067,830			4,876,970			6,098,266
Common stockholders’ equity		2,633,680			2,387,534			2,394,410			2,400,664			2,391,325
Stockholders’ equity		3,145,074			2,898,132			2,904,210			2,909,700			2,899,603
Common stockholders’ equity/assets		11.38	%		10.48	%		10.25	%		9.98	%		9.86	%
Stockholders’ equity / assets		13.58	%		12.73	%		12.43	%		12.09	%		11.95	%
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 loan losses		575,573			573,533			412,530			407,167			313,228
Goodwill		929,168			929,168			929,168			929,168			929,168
Mortgage servicing rights at fair value, net		64,190			63,753			61,066			59,762			39,754
Other intangible assets		27,801			29,054			30,440			31,826			33,211
Deposits		17,496,787			16,728,613			16,446,109			16,320,391			15,873,189
Wholesale funding		2,219,543			3,180,851			3,279,100			4,474,542			5,326,734
Stockholders’ equity		3,180,509			2,738,608			2,924,659			2,873,768			2,897,169
Stockholders’ equity / assets		13.76	%		11.97	%		12.78	%		11.97	%		11.90	%
Tangible common equity / tangible assets (4)		7.73	%		5.79	%		6.64	%		6.09	%		6.10	%
Tangible equity/tangible assets (5)		10.04	%		8.12	%		8.96	%		8.30	%		8.27	%
Tier 1 risk-based capital ratio		16.40	%		12.52	%		13.14	%		12.45	%		11.93	%
Tier 1 leverage ratio		10.57	%		8.76	%		9.35	%		9.06	%		9.06	%
Total risk-based capital ratio		18.15	%		14.24	%		14.83	%		14.35	%		13.79	%
Shares outstanding, end of period		172,880			127,876			127,864			127,861			127,860
Selected trend information
Average full time equivalent employees		4,777			4,802			5,004			5,116			5,143
Trust assets under management, at market value	$	5,500,000		$	5,300,000		$	5,200,000		$	5,000,000		$	4,800,000
Mortgage loans originated for sale during period		454,746			671,305			638,229			1,335,175			1,079,732
Mortgage portfolio serviced for others		7,751,000			7,667,000			7,473,000			6,904,000			6,582,000
Mortgage servicing rights, net / Portfolio serviced for others		0.83	%		0.83	%		0.82	%		0.87	%		0.60	%

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 Dec09												Mar10 vs Mar09
(in thousands)	Mar 31, 2010			Dec 31, 2009			% Change			Sept 30, 2009			Jun 30, 2009			Mar 31, 2009			% Change
Allowance for Loan Losses
Beginning balance	$	573,533		$	412,530			39.0	%	$	407,167		$	313,228		$	265,378			116.1	%
Provision for loan losses		165,345			394,789			(58.1	%)		95,410			155,022			105,424			56.8	%
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 offs		(163,305	)		(233,786	)		(30.1	%)		(90,047	)		(61,083	)		(57,574	)		183.6	%
Ending balance	$	575,573		$	573,533			0.4	%	$	412,530		$	407,167		$	313,228			83.8	%

Net Charge Offs

					Mar10 vs Dec09									Mar10 vs Mar09
	Mar 31, 2010		Dec 31, 2009		% Change			Sept 30, 2009		Jun 30, 2009		Mar 31, 2009		% Change
Commercial, financial & agricultural	$	63,699	$	42,940		48.3	%	$	57,480	$	19,367	$	35,890		77.5	%
Commercial real estate		21,328		40,550		(47.4	%)		4,449		8,382		2,858		646.3	%
Real estate — construction		60,186		124,659		(51.7	%)		12,837		16,249		3,452		N/M
Lease financing		774		261		196.6	%		319		988		2		N/M
Total commercial		145,987		208,410		(30.0	%)		75,085		44,986		42,202		245.9	%
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 mortgage		3,327		6,774		(50.9	%)		1,327		3,433		2,644		25.8	%
Total net charge offs	$	163,305	$	233,786		(30.1	%)	$	90,047	$	61,083	$	57,574		183.6	%

Net Charge Offs to Average Loans

	Mar 31, 2010			Dec 31, 2009			Sept 30, 2009			Jun 30, 2009			Mar 31, 2009
Commercial, financial & agricultural		7.95	%		4.90	%		6.11	%		1.91	%		3.41	%
Commercial real estate		2.30	%		4.12	%		0.45	%		0.92	%		0.32	%
Real estate — construction		17.80	%		31.85	%		2.85	%		3.07	%		0.62	%
Lease financing		3.41	%		1.05	%		1.19	%		3.49	%		0.01	%
Total commercial		6.98	%		9.15	%		3.13	%		1.82	%		1.67	%
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 mortgage		0.67	%		1.27	%		0.23	%		0.53	%		0.43	%
Total net charge offs		4.76	%		6.35	%		2.34	%		1.52	%		1.42	%

Credit Quality

							Mar10 vs Dec09												Mar10 vs Mar09
	Mar 31, 2010			Dec 31, 2009			% Change			Sept 30, 2009			Jun 30, 2009			Mar 31, 2009			% Change
Nonaccrual loans	$	1,180,185		$	1,077,799			9.5	%	$	845,320		$	700,514		$	433,246			172.4	%
Loans 90 or more days past due and still accruing		6,353			24,981			(74.6	%)		23,174			19,785			16,002			(60.3	%)
Restructured loans		23,420			19,037			23.0	%		17,256			13,089			2,927			N/M
Total nonperforming loans		1,209,958			1,121,817			7.9	%		885,750			733,388			452,175			167.6	%
Other real estate owned (OREO)		62,220			68,441			(9.1	%)		60,010			51,633			54,883			13.4	%
Total nonperforming assets	$	1,272,178		$	1,190,258			6.9	%	$	945,760		$	785,021		$	507,058			150.9	%
Provision for loan losses		165,345			394,789			(58.1	%)		95,410			155,022			105,424			56.8	%
Net charge offs		163,305			233,786			(30.1	%)		90,047			61,083			57,574			183.6	%
Allowance for loan losses / loans		4.33	%		4.06	%					2.79	%		2.66	%		1.97	%
Allowance for loan losses / nonperforming loans		47.57			51.13						46.57			55.52			69.27
Nonperforming loans / total loans		9.10			7.94						6.00			4.79			2.84
Nonperforming assets / total loans plus OREO		9.52			8.38						6.38			5.11			3.17
Nonperforming assets / total assets		5.51			5.20						4.13			3.27			2.08
Net charge offs / average loans (annualized)		4.76			6.35						2.34			1.52			1.42
Year-to-date net charge offs / average loans		4.76			2.84						1.75			1.47			1.42
Nonperforming loans by type:
Commercial, financial & agricultural	$	180,182		$	234,418			(23.1	%)	$	209,843		$	187,943		$	102,257			76.2	%
Commercial real estate		356,853			307,478			16.1	%		213,736			165,929			100,838			253.9	%
Real estate — construction		487,552			413,360			17.9	%		301,844			264,402			152,008			220.7	%
Lease financing		29,466			19,506			51.1	%		18,814			1,929			1,707			N/M
Total commercial		1,054,053			974,762			8.1	%		744,237			620,203			356,810			195.4	%
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 mortgage		101,615			95,221			6.7	%		88,221			67,166			53,386			90.3	%
Total nonperforming loans	$	1,209,958		$	1,121,817			7.9	%	$	885,750		$	733,388		$	452,175			167.6	%
Loans past due 30-89 days	$	165,280		$	240,755			(31.3	%)	$	175,492		$	209,323		$	245,854			(32.8	%)

Potential Problem Loans

					Mar10 vs Dec09									Mar10 vs Mar09
	Mar 31, 2010		Dec 31, 2009		% Change			Sept 30, 2009		Jun 30, 2009		Mar 31, 2009		% Change
Commercial, financial & agricultural	$	505,903	$	563,836		(10.3	%)	$	481,034	$	428,550	$	365,069		38.6	%
Commercial real estate		565,969		598,137		(5.4	%)		588,013		462,103		280,479		101.8	%
Real estate — construction		262,572		391,105		(32.9	%)		462,029		481,467		347,968		(24.5	%)
Lease financing		5,158		8,367		(38.4	%)		9,572		24,934		2,938		75.6	%
Total commercial		1,339,602		1,561,445		(14.2	%)		1,540,648		1,397,054		996,454		34.4	%
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 mortgage		19,591		19,150		2.3	%		15,414		14,448		13,030		50.4	%
Total potential problem loans	$	1,367,742	$	1,595,519		(14.3	%)	$	1,573,903	$	1,426,171	$	1,016,551		34.5	%

N/M — Not meaningful.

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

	Three months ended March 31, 2010							Three months ended March 31, 2009
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	8,478,259	$	89,895		4.29	%	$	10,227,260	$	116,664		4.62	%
Residential mortgage		2,019,855		25,471		5.06			2,499,853		33,868		5.44
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 other		7,150,430		61,875		3.46			5,528,730		66,157		4.79
Total earning assets		21,075,408		221,974		4.24			21,959,077		269,029		4.94
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 demand deposits		2,920,510		1,779		0.25			1,699,989		829		0.20
Money market deposits		6,242,934		8,221		0.53			4,945,174		11,566		0.95
Time deposits, excluding Brokered CDs		3,451,638		17,453		2.05			3,993,154		30,056		3.05
Total interest-bearing deposits, excluding Brokered CDs		13,473,522		27,703		0.83			11,495,428		42,773		1.51
Brokered CDs		660,361		1,042		0.64			864,185		3,826		1.80
Total interest-bearing deposits		14,133,883		28,745		0.82			12,359,613		46,599		1.53
Wholesale funding		2,837,001		17,973		2.55			6,098,266		26,608		1.76
Total interest-bearing liabilities		16,970,884		46,718		1.11			18,457,879		73,207		1.61
Noninterest-bearing demand deposits		3,010,041							2,686,363
Other liabilities		25,768							211,938
Stockholders’ equity		3,145,074							2,899,603
Total liabilities and stockholders’ equity	$	23,151,767						$	24,255,783
Net interest income and rate spread (1)			$	175,256		3.13	%			$	195,822		3.33	%
Net interest margin (1)						3.35	%						3.59	%
Taxable equivalent adjustment			$	6,034						$	6,544

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

	Three months ended March 31, 2010							Three months ended December 31, 2009
	Average		Interest		Average			Average		Interest		Average
(in thousands)	Balance		Income / Expense		Yield / Rate			Balance		Income / Expense		Yield / Rate
Earning assets:
Loans: (1) (2) (3)
Commercial	$	8,478,259	$	89,895		4.29	%	$	9,037,436	$	100,124		4.40	%
Residential mortgage		2,019,855		25,471		5.06			2,108,755		27,316		5.17
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 other		7,150,430		61,875		3.46			5,894,118		62,978		4.27
Total earning assets		21,075,408		221,974		4.24			20,499,225		236,398		4.59
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 demand deposits		2,920,510		1,779		0.25			2,605,242		1,630		0.25
Money market deposits		6,242,934		8,221		0.53			5,658,251		8,463		0.59
Time deposits, excluding Brokered CDs		3,451,638		17,453		2.05			3,671,087		20,215		2.18
Total interest-bearing deposits, excluding Brokered CDs		13,473,522		27,703		0.83			12,804,576		30,652		0.95
Brokered CDs		660,361		1,042		0.64			526,729		819		0.62
Total interest-bearing deposits		14,133,883		28,745		0.82			13,331,305		31,471		0.94
Wholesale funding		2,837,001		17,973		2.55			3,332,642		20,386		2.43
Total interest-bearing liabilities		16,970,884		46,718		1.11			16,663,947		51,857		1.24
Noninterest-bearing demand deposits		3,010,041							3,075,729
Other liabilities		25,768							135,768
Stockholders’ equity		3,145,074							2,898,132
Total liabilities and stockholders’ equity	$	23,151,767						$	22,773,576
Net interest income and rate spread (1)			$	175,256		3.13	%			$	184,541		3.35	%
Net interest margin (1)						3.35	%						3.59	%
Taxable equivalent adjustment			$	6,034						$	6,188

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

Financial Summary and Comparison
Associated Banc-Corp

Period End Loan Composition

					Mar10 vs Dec09									Mar10 vs Mar09
	Mar 31, 2010		Dec 31, 2009		% Change			Sept 30, 2009		Jun 30, 2009		Mar 31, 2009		% Change
Commercial, financial & agricultural	$	3,099,265	$	3,450,632		(10.2	%)	$	3,613,457	$	3,904,925	$	4,160,274		(25.5	%)
Commercial real estate		3,699,139		3,817,066		(3.1	%)		3,902,340		3,737,749		3,575,301		3.5	%
Real estate — construction		1,281,868		1,397,493		(8.3	%)		1,611,857		1,963,919		2,228,090		(42.5	%)
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 mortgage		1,903,869		1,947,848		(2.3	%)		2,058,581		2,092,440		2,200,725		(13.5	%)
Total loans	$	13,299,321	$	14,128,625		(5.9	%)	$	14,765,597	$	15,310,107	$	15,917,952		(16.5	%)

Period End Deposit Composition

					Mar10 vs Dec09									Mar10 vs Mar09
	Mar 31, 2010		Dec 31, 2009		% Change			Sept 30, 2009		Jun 30, 2009		Mar 31, 2009		% Change
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 demand		2,939,390		3,099,358		(5.2	%)		2,395,429		2,242,800		1,796,724		63.6	%
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 deposits		3,371,390		3,560,144		(5.3	%)		3,817,147		3,991,414		4,030,481		(16.4	%)
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 in interest-bearing demand and money market	$	2,641,648	$	1,926,539		37.1	%	$	1,767,271	$	1,605,722	$	1,759,656		50.1	%
Customer repo sweeps (a)	$	188,314	$	195,858		(3.9	%)	$	242,575	$	269,809	$	333,706		(43.6	%)

(a) Included within short-term borrowings.