Associated Banc-Corp (ASB) 8-K Associated reports Third Quarter Earnings of $0.20 per share

Associated Banc-Corp

3Q 2011 Earnings Presentation

October 20, 2011

Exhibit 99.2

Forward-Looking Statements

Important

note

regarding

forward-looking

statements:

1

Statements made in this presentation which are not purely historical are forward-looking

statements, as defined in the Private Securities Litigation Reform Act of 1995. This

includes any statements regarding management’s plans, objectives, or goals for future

operations, products or services, and forecasts of its revenues, earnings, or other

measures of performance. Forward-looking statements are based on current

management expectations and, by their nature, are subject to risks and uncertainties.

These statements may be identified by the use of words such as “believe”, “expect”,

“anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, or similar expressions. Outcomes

related to such statements are subject to numerous risk factors and uncertainties

including those listed in the company’s  most recent Form 10-K and any subsequent 

Form10-Q.

Third Quarter 2011 Highlights

•

Net income to common shareholders of $34 million or $0.20 per share

•

Pre-tax

income

improved

33%,

or

$15

million

and

net

income

to

common

shareholders

improved 33%, or $8 million from the prior quarter

•

Total loans of $13.5 billion were up 3% from the end of the second quarter

–

Commercial and business lending (C&I, leasing, and owner-occupied CRE loans) grew by a

net $198 million on a linked-quarter basis

–

Commercial real estate lending (Investor CRE and construction loans) increased by a net

$108 million from the prior quarter

–

Retail loans and residential mortgages grew by a net $108 million during the third quarter

•

Continued improvement in key credit metrics

–

Nonaccrual loans declined 14% from the prior quarter and 45% on a year-over-year basis to

$403 million, the lowest level in seven quarters

–

Provision for loan losses of $4 million was down significantly from the prior quarter

–

Net charge-offs of $30 million were down 32% from $45 million for the second quarter

•

Capital ratios remain very strong with a Tier 1 common ratio of 12.44% and total capital ratio

of 15.81%

•

Completed the repurchase of remaining TARP funds through senior note and preferred stock

offerings

2

Loan Portfolio Growth and Composition

3

Total Loans of $13.5 billion at September 30, 2011

Loan Mix –

4Q 2008 vs 3Q 2011

Total Loans ($ in billions)

+3% QoQ

4Q 2008

3Q 2011

Peak Loans (4Q 2008) $16.3 billion

$12.4

$12.6

$12.7

$13.1

$13.5

$10.5

$12.0

$13.5

$15.0

$16.5

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

CRE Investor

14%

Construction

14%

Commercial &

Business

Lending

35%

Res Mtg

14%

Home Equity

18%

Consumer

5%

CRE Investor

19%

Construction

4%

Commercial &

Business

Lending

33%

Res Mtg

21%

Home Equity

19%

Consumer

4%

Managing the Cost of Funds and Customer Funding Levels

4

Cost of Money Market Deposits

Cost of Interest-Bearing Liabilities

$6.8b

$6.0b

$5.1b

$5.0b

$5.1b

$16.4b

$15.5b

$14.9b

$15.3b

$15.2b

Net Customer Deposits and Funding

($ in billions)

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

0.54%

0.47%

0.37%

0.33%

0.30%

1.03%

0.98%

0.89%

0.91%

0.83%

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

$14.6

$14.2

$14.7

$15.0

$15.7

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

Continuing Decline in Potential Problem Loans

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

YoY

Change

Commercial and industrial

$

373,955

$     354,284

$     348,949

$     229,407

$     207,351

(45%)

Commercial real estate

553,126

492,778

465,376

382,056

392,737

(29%)

Real estate -

construction

175,817

91,618

70,824

63,186

37,155

(79%)

Lease financing

2,302

2,617

1,705

1,399

507

(78%)

Total commercial

1,105,200

941,297

886,854

676,048

637,750

(42%)

Home equity

6,495

3,057

4,737

4,515

4,975

(23%)

Installment

692

703

230

216

272

(61%)

Total retail

7,187

3,760

4,967

4,731

5,247

(27%)

Residential mortgage

19,416

18,672

19,710

18,575

16,550

(15%)

Total Potential Problem Loans

$ 1,131,803

$    963,729

$    911,531

$     699,354

$     659,547

(42%)

5

($ in millions)

Significant Improvements in Credit Quality Indicators

6

($ in millions)

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

$        64.0

$       63.0

$       31.0

$       16.0

$         4.0

Net charge offs

$      109.9

$     108.2

$       53.4

$       44.5

$       30.2

ALLL/Total

loans

4.22%

3.78%

3.59%

3.25%

2.96%

ALLL/Nonaccruals

71.72%

83.02%

93.07%

91.09%

99.09%

NPA/Assets

3.47%

2.84%

2.50%

2.33%

2.03%

Nonaccruals/Loans

5.88%

4.55%

3.86%

3.57%

2.99%

NCOs / Avg Loans

3.39%

3.41%

1.71%

1.37%

0.90%

Provision

for

loan

losses

Maintaining a Strong Capital Profile

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

ASBC

Capital

Ratios

Stockholders’

equity

/

assets

14.21%

14.50%

14.88%

13.60%

13.01%

Tangible common equity / tangible assets

8.03%

8.12%

8.42%

8.49%

8.77%

Tangible equity / tangible assets

10.41%

10.59%

10.93%

9.71%

9.07%

Tier 1 common equity / risk-weighted assets

12.31%

12.26%

12.65%

12.61%

12.44%

Tier 1 leverage ratio

10.78%

11.19%

11.65%

10.46%

9.62%

Tier 1 risk-based capital ratio

17.68%

17.58%

18.08%

16.03%

14.35%

Total risk-based capital ratio

19.16%

19.05%

19.56%

17.50%

15.81%

7

–

Solid third quarter results, with EPS of $0.20 per common share

–

Loan

portfolio

grew

3%

from

the

second

quarter

to

$13.5

billion,

with

strong

growth

from major segments

–

Credit continues to improve

–

Increasing pre-tax income, up 33% from prior quarter

8

3Q 2011

Summary

–

Continuing to execute our strategic initiatives for loan growth

–

Modest pressure on the net interest margin

–

Continuing to invest in our brand, our footprint, and our people

Remainder

of

2011

–

Positioning

for

the

Future

–

Our customer centric investments will provide attractive returns

–

Focusing on levers for earnings expansion

2012

and

Beyond

–

Investing

in

Our

Franchise

Deposit and Funding Portfolio Trends

9

($ in thousands)

Cost of Funds

Jun 30, 2011

Sep 30, 2011

$ Change

% Change

3Q 2011

Demand

3,218,722

$   

3,711,570

$   

492,848

15%

Savings

1,007,337

1,013,195

5,858

1%

0.11

%

Interest-bearing demand

1,931,519

2,071,627

140,108

7%

0.18

Money market

4,982,492

5,205,401

222,909

4%

0.30

Brokered CDs

316,670

203,827

(112,843)

-36%

1.29

Other time deposits

2,609,310

2,576,790

(32,520)

-1%

1.50

     Total deposits

14,066,050

14,782,410

716,360

5%

0.56

Customer repo sweeps

930,101

871,619

(58,482)

-6%

Customer repo term

1,147,938

1,141,450

(6,488)

-1%

     Total customer funding

2,078,039

2,013,069

(64,970)

-3%

Total Deposits and Customer Funding

16,144,089

16,795,479

651,390

4%

Network transaction deposits

824,003

875,630

51,627

6%

Brokered CDs

316,670

203,827

(112,843)

-36%

1.29

    Total Networked and Brokered Deposits

1,140,673

1,079,457

(61,216)

-5%

Net Customer Deposits and Funding

15,003,416

$ 

15,716,022

$ 

712,606

5%

Jun 11 vs Sep 11

Period End Deposit and Customer Funding Composition

Loan Portfolio Trends

10

($ in thousands)

Cost of Funds

Jun 30, 2011

Sep 30, 2011

$ Change

% Change

3Q 2011

Commercial and industrial

3,202,301

$   

3,360,502

$   

158,201

5%

Lease financing

54,001

54,849

848

2%

Commercial real estate - owner occupied

1,030,060

1,068,616

38,556

4%

     Commerical and business lending

4,286,362

4,483,967

197,605

5%

Commercial real estate - investor

2,393,626

2,481,411

87,785

4%

Real estate - construction

533,804

554,024

20,220

4%

     Commercial real estate lending

2,927,430

3,035,435

108,005

4%

        Total commercial

7,213,792

7,519,402

305,610

4%

4.28

%

Home equity

2,594,029

2,571,404

(22,625)

-1%

Installment

589,714

572,243

(17,471)

-3%

     Total retail

3,183,743

3,143,647

(40,096)

-1%

4.78

     Residential mortgage

2,692,054

2,840,458

148,404

6%

4.09

Total Loans

13,089,589

$ 

13,503,507

$ 

413,918

3%

4.36

Jun 11 vs Sep 11

Period End Loan Composition