8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 16, 2014

Associated Banc-Corp

(Exact name of registrant as specified in its chapter)

Wisconsin

001-31343

39-1098068

(State or other jurisdiction of incorporation)

(Commission

File Number)

(IRS Employer Identification No.)


433 Main Street, Green Bay, Wisconsin		54301
(Address of principal executive offices)		(Zip code)


Registrant’s telephone number, including area code 920-491-7500

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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

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

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

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 16, 2014, Associated Banc-Corp announced its earnings for the quarter ended September 30, 2014. A copy of the registrant’s press release containing this information and the slide presentation discussed on the conference call for investors and analysts on October 16, 2014, are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report on Form 8-K and are incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished as part of this Report on Form 8-K:

99.1

Press release of the registrant dated October 16, 2014, containing financial information for the quarter ended September 30, 2014.

99.2

Slide presentation discussed on the conference call for investors and analysts on October 16, 2014.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


				Associated Banc-Corp
				(Registrant)

Date: October 16, 2014				By: /s/ Christopher J. Del Moral-Niles
				Christopher J. Del Moral-Niles
				Chief Financial Officer

ASSOCIATED BANC-CORP

Exhibit Index to Current Report on Form 8-K


Exhibit
Number

99.1		Press release of the registrant dated October 16, 2014, containing financial information for the quarter ended September 30, 2014.

99.2		Slide presentation discussed on the conference call for investors and analysts on October 16, 2014.

EX-99.1

Exhibit 99.1

NEWS RELEASE

Investor Contact:

Brian Klaus, Senior Vice President, Director of Investor Relations

920-491-7059

Media Contact:

Cliff Bowers, Senior Vice President, Director of Public Relations

920-491-7542

Associated Reports Third Quarter Earnings of $0.31 per share

Earnings per share up 15% from prior year

GREEN BAY, Wis. — October 16, 2014 — Associated Banc-Corp (NASDAQ: ASBC) today reported net income to common shareholders of $49 million, or $0.31 per common share, for the quarter ended September 30, 2014. This compares to net income to common shareholders of $45 million, or $0.28 per common share, for the quarter ended June 30, 2014 and $44 million, or $0.27 per common share for the quarter ended September 30, 2013.

“We are pleased with our strong results this quarter. Growth in loan interest income drove top line revenue higher. We remain focused on investing in technology which is essential to sustain and improve operational efficiency,” said President and CEO Philip B. Flynn. “We will continue our on-going commitment to build long-term shareholder value at Associated with a focus on strengthening our franchise and deploying capital in a disciplined manner.”

HIGHLIGHTS

•

Average loans grew $495 million, or 3% from the second quarter to $17.1 billion

–

Average total commercial loan balances grew $235 million, or 2% from the second quarter

–

Average residential mortgage loans grew $231 million or 6% from the prior quarter

•

Average deposits grew $701 million, or 4% from the second quarter to $17.9 billion

–

Average checking balances grew $369 million or 5% from the prior quarter

•

Net interest income of $173 million increased $4 million, or 2% from the second quarter, and $12 million, or 8% compared to the year ago quarter

•

Provision for credit losses of $1 million declined $4 million from the second quarter

•

Noninterest income increased $3 million, or 4% compared to the prior quarter, and increased $4 million, or 6% from the year ago quarter

•

Noninterest expenses of $172 million were up $4 million, or 2% compared to the prior quarter

•

Pretax income of $75 million increased $7 million, or 10% from the second quarter and increased $8 million, or 11% from the year ago quarter

•

During the third quarter, the Company repurchased approximately 5 million shares of common stock at an average cost of $18.17 per share

•

Return on Tier 1 common equity was 10.4% for the third quarter

•

Capital ratios remain strong with a Tier 1 common equity ratio of 10.39% at September 30, 2014

– more –

THIRD QUARTER 2014 FINANCIAL RESULTS

Loans

Average loans of $17.1 billion increased $495 million, or 3% from the second quarter, and have increased $1.4 billion on average or 9%, from the year ago quarter. Total average commercial loans grew $235 million, or 2% from the second quarter, and are up $1 billion or 11%, from the year ago quarter. Commercial and business lending average balances grew $184 million, or 3% from the prior quarter. Within commercial and business lending, the mortgage warehouse portfolio grew an average of $115 million during the quarter and accounted for the largest share of the growth. Commercial real estate lending average balances grew by $51 million, or 1% from the second quarter. Total average consumer loans grew $260 million, or 4% from the prior quarter. Residential mortgage average balances grew $231 million, or 6% from the second quarter. Installment loan average balances grew $75 million from the second quarter, related to the purchase of a participation in the Associated Bank branded credit card portfolio on June 30, 2014. Home equity average balances declined $46 million during the quarter.

Deposits

Third quarter average deposits of $17.9 billion increased $701 million, or 4% compared to the second quarter and are up $264 million, or 2% from the year ago quarter. Average checking balances increased $369 million, or 5% from the prior quarter and have increased $261 million, or 4% from the year ago quarter. Money market average balances increased $381 million, or 5% from the second quarter. Average time deposits declined $52 million, or 3% during the third quarter, and have declined $228 million, or 13% from the year ago quarter.

Net Interest Income and Net Interest Margin

Third quarter net interest income of $173 million increased $4 million, or 2% compared to the prior quarter and $12 million, or 8% compared to the year ago quarter.

Third quarter net interest margin was 3.06%, a decrease of 2 basis points from the 3.08% reported in the second quarter and a decrease of 7 basis points from a year ago. The decrease from the second quarter was the result of a 2 basis point decline in asset yields while liability costs remained flat. Total interest-bearing funding costs remained at 29 basis points, while total interest-bearing deposit costs were at 19 basis points, for the third quarter.

– more –

Noninterest Income and Expense

Noninterest income for the third quarter was $75 million, up $3 million, or 4% from the second quarter and up $4 million, or 6% from the year ago quarter. Mortgage banking income increased $1 million from the prior quarter and $3 million from the year ago quarter. Insurance commissions declined from the prior quarter, primarily related to the establishment of a $4 million reserve for remediation on legacy debt protection products. Asset gains increased from the prior quarter related to two corporate real estate gains of $3 million and $1 million, respectively.

Total noninterest expense for the third quarter was $172 million, up $4 million, or 2% from the second quarter. Advertising expenses increased $2 million from the second quarter primarily related to the Bank’s fall marketing campaign. FDIC expense increased from the second quarter reflecting the growth in risk-weighted assets.

Taxes

Third quarter income taxes of $24 million were up $3 million from the prior quarter. The effective tax rate for the third quarter was 33%.

Credit

Net charge offs of $3 million for the third quarter were flat to the prior quarter, and were down $3 million from the year ago quarter. Potential problem loans of $220 million declined 24% from the prior quarter. With these improvements in credit portfolio metrics, the third quarter provision for credit losses of $1 million was down $4 million from the prior quarter.

The Company’s allowance for loan losses was $266 million, equal to 1.55% of loans and reflects a coverage ratio of 145% of nonaccrual loans at September 30, 2014.

Nonaccrual loans were up 3%, to $184 million compared to the second quarter, but were down 11% from a year ago. The ratio of nonaccrual loans to total loans was up slightly from the previous quarter and stands at 1.07%.

Capital Ratios

The Company’s capital position remains strong, with a Tier 1 common equity ratio of 10.39% at September 30, 2014. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.

– more –

THIRD QUARTER 2014 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, October 16, 2014. Interested parties can listen to the call live on the internet through the investor relations section of the company’s website, https://www.associatedbank.com/investor or by dialing 877-407-8037. The slide presentation for the call will be available on the company’s website just prior to the call. The number for international callers is 201-689-8037. Participants should ask the operator for the Associated Banc-Corp third quarter 2014 earnings call.

An audio archive of the webcast will be available on the company’s website at https://www.associatedbank.com/investor approximately fifteen minutes after the call is over.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NASDAQ: ASBC) has total assets of $26 billion and is one of the top 50, publicly traded, U.S. bank holding companies. Headquartered in Green Bay, Wis., Associated is a leading Midwest banking franchise, offering a full range of financial products and services in over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

Statements made in this document 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. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.

NON-GAAP FINANCIAL MEASURES

This press release contains references to measures which are not defined in generally accepted accounting principles (“GAAP”), including “efficiency ratio,” “Tier 1 common equity”, and “core fee-based revenue.” Information concerning these non-GAAP financial measures can be found in the attached tables.

# # #

Exhibit 99.1

Associated Banc-Corp

Consolidated Balance Sheets (Unaudited)


(in thousands)	September 30, 2014			June 30, 2014			Seql Qtr $ Change			March 31, 2014			December 31, 2013			September 30, 2013			Comp Qtr $ Change
*Assets*
Cash and due from banks	$	381,287		$	549,883		$	(168,596	)	$	526,951		$	455,482		$	526,009		$	(144,722	)
Interest-bearing deposits in other financial institutions		74,945			78,233			(3,288	)		92,071			126,018			277,761			(202,816	)
Federal funds sold and securities purchased under agreements to resell		18,320			18,135			185			4,400			20,745			25,400			(7,080	)
Securities held to maturity, at amortized cost		301,941			246,050			55,891			193,759			175,210			125,095			176,846
Securities available for sale, at fair value		5,345,422			5,506,379			(160,957	)		5,277,908			5,250,585			4,840,035			505,387
Federal Home Loan Bank and Federal
Reserve Bank stocks, at cost		188,875			186,247			2,628			181,360			181,249			181,129			7,746
Loans held for sale		141,672			78,657			63,015			46,529			64,738			102,052			39,620
Loans		17,159,090			17,045,052			114,038			16,441,444			15,896,261			15,585,854			1,573,236
Allowance for loan losses		(266,262	)		(271,851	)		5,589			(267,916	)		(268,315	)		(271,724	)		5,462

Loans, net		16,892,828			16,773,201			119,627			16,173,528			15,627,946			15,314,130			1,578,698
Premises and equipment, net		272,283			264,735			7,548			269,257			270,890			265,636			6,647
Goodwill		929,168			929,168			—			929,168			929,168			929,168			—
Other intangible assets, net		69,201			70,538			(1,337	)		72,629			74,464			75,730			(6,529	)
Trading assets		34,005			40,630			(6,625	)		40,822			43,728			49,402			(15,397	)
Other assets		1,003,875			985,930			17,945			997,815			1,006,697			977,128			26,747

*Total assets*	$	25,653,822		$	25,727,786		$	(73,964	)	$	24,806,197		$	24,226,920		$	23,688,675		$	1,965,147

*Liabilities and Stockholders’ Equity*
Noninterest-bearing demand deposits	$	4,302,454		$	4,211,057		$	91,397		$	4,478,981		$	4,626,312		$	4,453,663		$	(151,209	)
Interest-bearing deposits		13,898,804			13,105,202			793,602			13,030,946			12,640,855			13,884,245			14,559

Total deposits		18,201,258			17,316,259			884,999			17,509,927			17,267,167			18,337,908			(136,650	)
Federal funds purchased and securities sold under agreements to repurchase		765,641			959,051			(193,410	)		939,254			475,442			580,479			185,162
Other short-term funding		664,539			1,378,120			(713,581	)		308,652			265,484			1,046,401			(381,862	)
Long-term funding		2,931,547			2,931,809			(262	)		2,932,040			3,087,267			614,568			2,316,979
Trading liabilities		36,003			43,311			(7,308	)		43,450			46,470			52,430			(16,427	)
Accrued expenses and other liabilities		185,256			169,290			15,966			171,850			193,800			184,607			649

Total liabilities		22,784,244			22,797,840			(13,596	)		21,905,173			21,335,630			20,816,393			1,967,851
Stockholders’ Equity
Preferred equity		61,024			61,024			—			61,158			61,862			62,737			(1,713	)
Common stock		1,719			1,750			(31	)		1,750			1,750			1,750			(31	)
Surplus		1,583,032			1,628,356			(45,324	)		1,623,323			1,617,990			1,614,516			(31,484	)
Retained earnings		1,466,525			1,432,518			34,007			1,402,549			1,392,508			1,361,498			105,027
Accumulated other comprehensive income (loss)		(1,725	)		10,494			(12,219	)		(11,577	)		(24,244	)		(37,120	)		35,395
Treasury stock		(240,997	)		(204,196	)		(36,801	)		(176,179	)		(158,576	)		(131,099	)		(109,898	)

Total stockholders’ equity		2,869,578			2,929,946			(60,368	)		2,901,024			2,891,290			2,872,282			(2,704	)

*Total liabilities and stockholders’ equity*	$	25,653,822		$	25,727,786		$	(73,964	)	$	24,806,197		$	24,226,920		$	23,688,675		$	1,965,147

Page 5

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)


	For The Three Months Ended											For The Nine Months Ended
	September 30,					Quarter						September 30,				Year-to-Date
(in thousands, except per share amounts)	2014		2013			$ Change			% Change			2014		2013		$ Change			% Change
*Interest Income*
Interest and fees on loans	$	152,030	$	146,219		$	5,811			4.0	%	$	442,046	$	438,642	$	3,404			0.8	%
Interest and dividends on investment securities:
Taxable		25,037		21,544			3,493			16.2	%		77,403		64,603		12,800			19.8	%
Tax-exempt		7,483		6,711			772			11.5	%		21,484		20,461		1,023			5.0	%
Other interest		1,503		1,260			243			19.3	%		4,814		3,740		1,074			28.7	%

Total interest income		186,053		175,734			10,319			5.9	%		545,747		527,446		18,301			3.5	%
*Interest Expense*
Interest on deposits		6,621		7,617			(996	)		(13.1	%)		18,975		23,927		(4,952	)		(20.7	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		390		308			82			26.6	%		1,001		1,051		(50	)		(4.8	%)
Interest on other short-term funding		233		434			(201	)		(46.3	%)		629		1,291		(662	)		(51.3	%)
Interest on long-term funding		6,179		6,866			(687	)		(10.0	%)		18,836		22,833		(3,997	)		(17.5	%)

Total interest expense		13,423		15,225			(1,802	)		(11.8	%)		39,441		49,102		(9,661	)		(19.7	%)

*Net Interest Income*		172,630		160,509			12,121			7.6	%		506,306		478,344		27,962			5.8	%
Provision for credit losses		1,000		(800	)		1,800			N/M			11,000		7,800		3,200			41.0	%

Net interest income after provision for credit losses		171,630		161,309			10,321			6.4	%		495,306		470,544		24,762			5.3	%
*Noninterest Income*
Trust service fees		12,218		11,380			838			7.4	%		35,946		33,695		2,251			6.7	%
Service charges on deposit accounts		17,961		18,407			(446	)		(2.4	%)		51,773		52,679		(906	)		(1.7	%)
Card-based and other nondeposit fees		12,407		12,688			(281	)		(2.2	%)		37,493		37,229		264			0.7	%
Insurance commissions		7,860		11,356			(3,496	)		(30.8	%)		33,828		32,750		1,078			3.3	%
Brokerage and annuity commissions		4,040		3,792			248			6.5	%		12,593		10,996		1,597			14.5	%

Total core fee-based revenue		54,486		57,623			(3,137	)		(5.4	%)		171,633		167,349		4,284			2.6	%
Mortgage banking, net		6,669		3,542			3,127			88.3	%		18,392		40,570		(22,178	)		(54.7	%)
Capital market fees, net		2,939		2,652			287			10.8	%		7,360		10,309		(2,949	)		(28.6	%)
Bank owned life insurance income		3,506		2,817			689			24.5	%		10,837		9,068		1,769			19.5	%
Asset gains, net		4,934		1,934			3,000			155.1	%		6,561		2,726		3,835			140.7	%
Investment securities gains, net		57		248			(191	)		(77.0	%)		469		582		(113	)		(19.4	%)
Other		2,317		2,100			217			10.3	%		5,424		6,622		(1,198	)		(18.1	%)

Total noninterest income		74,908		70,916			3,992			5.6	%		220,676		237,226		(16,550	)		(7.0	%)
*Noninterest Expense*
Personnel expense		97,650		98,102			(452	)		(0.5	%)		293,141		295,800		(2,659	)		(0.9	%)
Occupancy		13,743		14,758			(1,015	)		(6.9	%)		43,088		44,725		(1,637	)		(3.7	%)
Equipment		6,133		6,213			(80	)		(1.3	%)		18,636		18,842		(206	)		(1.1	%)
Technology		13,573		12,323			1,250			10.1	%		40,891		36,482		4,409			12.1	%
Business development and advertising		7,467		5,947			1,520			25.6	%		17,606		15,512		2,094			13.5	%
Other intangible amortization		990		1,010			(20	)		(2.0	%)		2,972		3,032		(60	)		(2.0	%)
Loan expense		3,813		3,157			656			20.8	%		10,220		9,485		735			7.7	%
Legal and professional fees		4,604		3,482			1,122			32.2	%		13,228		14,310		(1,082	)		(7.6	%)
Losses other than loans		677		(600	)		1,277			N/M			1,602		283		1,319			N/M
Foreclosure/OREO expense		2,083		2,515			(432	)		(17.2	%)		5,554		7,239		(1,685	)		(23.3	%)
FDIC expense		6,859		4,755			2,104			44.2	%		16,805		14,582		2,223			15.2	%
Other		14,261		13,509			752			5.6	%		43,693		41,190		2,503			6.1	%

Total noninterest expense		171,853		165,171			6,682			4.0	%		507,436		501,482		5,954			1.2	%

*Income before income taxes*		74,685		67,054			7,631			11.4	%		208,546		206,288		2,258			1.1	%
Income tax expense		24,478		21,396			3,082			14.4	%		66,775		65,354		1,421			2.2	%

*Net income*		50,207		45,658			4,549			10.0	%		141,771		140,934		837			0.6	%
Preferred stock dividends		1,255		1,285			(30	)		(2.3	%)		3,777		3,885		(108	)		(2.8	%)

*Net income available to common equity*	$	48,952	$	44,373		$	4,579			10.3	%	$	137,994	$	137,049	$	945			0.7	%

Earnings Per Common Share:
Basic	$	0.31	$	0.27		$	0.04			14.8	%		0.86		0.82	$	0.04			4.9	%
Diluted	$	0.31	$	0.27		$	0.04			14.8	%		0.85		0.82	$	0.03			3.7	%
Average Common Shares Outstanding:
Basic		155,925		164,954			(9,029	)		(5.5	%)		159,090		166,586		(7,496	)		(4.5	%)
Diluted		156,991		165,443			(8,452	)		(5.1	%)		159,993		166,760		(6,767	)		(4.1	%)

N/M = Not meaningful

Page 6

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)—Quarterly Trend


					Sequential Qtr														Comparable Qtr
(in thousands, except per share amounts)	3Q14		2Q14		$ Change			% Change			1Q14		4Q13			3Q13			$ Change			% Change
*Interest Income*
Interest and fees on loans	$	152,030	$	146,629	$	5,401			3.7	%	$	143,387	$	148,884		$	146,219		$	5,811			4.0	%
Interest and dividends on investment securities:
Taxable		25,037		26,109		(1,072	)		(4.1	%)		26,257		24,316			21,544			3,493			16.2	%
Tax-exempt		7,483		7,030		453			6.4	%		6,971		6,884			6,711			772			11.5	%
Other interest		1,503		1,862		(359	)		(19.3	%)		1,449		1,453			1,260			243			19.3	%

Total interest income		186,053		181,630		4,423			2.4	%		178,064		181,537			175,734			10,319			5.9	%
*Interest Expense*
Interest on deposits		6,621		6,195		426			6.9	%		6,159		7,340			7,617			(996	)		(13.1	%)
Interest on Federal funds purchased and securities sold under agreements to repurchase		390		306		84			27.5	%		305		271			308			82			26.6	%
Interest on other short-term funding		233		280		(47	)		(16.8	%)		116		228			434			(201	)		(46.3	%)
Interest on long-term funding		6,179		6,146		33			0.5	%		6,511		6,499			6,866			(687	)		(10.0	%)

Total interest expense		13,423		12,927		496			3.8	%		13,091		14,338			15,225			(1,802	)		(11.8	%)

*Net Interest Income*		172,630		168,703		3,927			2.3	%		164,973		167,199			160,509			12,121			7.6	%
Provision for credit losses		1,000		5,000		(4,000	)		(80.0	%)		5,000		2,300			(800	)		1,800			N/M

Net interest income after provision for credit losses		171,630		163,703		7,927			4.8	%		159,973		164,899			161,309			10,321			6.4	%
*Noninterest Income*
Trust service fees		12,218		12,017		201			1.7	%		11,711		11,938			11,380			838			7.4	%
Service charges on deposit accounts		17,961		17,412		549			3.2	%		16,400		17,330			18,407			(446	)		(2.4	%)
Card-based and other nondeposit fees		12,407		12,577		(170	)		(1.4	%)		12,509		12,684			12,688			(281	)		(2.2	%)
Insurance commissions		7,860		13,651		(5,791	)		(42.4	%)		12,317		11,274			11,356			(3,496	)		(30.8	%)
Brokerage and annuity commissions		4,040		4,520		(480	)		(10.6	%)		4,033		3,881			3,792			248			6.5	%

Total core fee-based revenue		54,486		60,177		(5,691	)		(9.5	%)		56,970		57,107			57,623			(3,137	)		(5.4	%)
Mortgage banking, net		6,669		5,362		1,307			24.4	%		6,361		8,277			3,542			3,127			88.3	%
Capital market fees, net		2,939		2,099		840			40.0	%		2,322		2,771			2,652			287			10.8	%
Bank owned life insurance income		3,506		3,011		495			16.4	%		4,320		2,787			2,817			689			24.5	%
Asset gains, net		4,934		899		4,035			N/M			728		2,687			1,934			3,000			155.1	%
Investment securities gains (losses), net		57		34		23			67.6	%		378		(18	)		248			(191	)		(77.0	%)
Other		2,317		665		1,652			248.4	%		2,442		2,262			2,100			217			10.3	%

Total noninterest income		74,908		72,247		2,661			3.7	%		73,521		75,873			70,916			3,992			5.6	%
*Noninterest Expense*
Personnel expense		97,650		97,793		(143	)		(0.1	%)		97,698		101,215			98,102			(452	)		(0.5	%)
Occupancy		13,743		13,785		(42	)		(0.3	%)		15,560		14,684			14,758			(1,015	)		(6.9	%)
Equipment		6,133		6,227		(94	)		(1.5	%)		6,276		6,509			6,213			(80	)		(1.3	%)
Technology		13,573		14,594		(1,021	)		(7.0	%)		12,724		12,963			12,323			1,250			10.1	%
Business development and advertising		7,467		5,077		2,390			47.1	%		5,062		7,834			5,947			1,520			25.6	%
Other intangible amortization		990		991		(1	)		(0.1	%)		991		1,011			1,010			(20	)		(2.0	%)
Loan expense		3,813		3,620		193			5.3	%		2,787		3,677			3,157			656			20.8	%
Legal and professional fees		4,604		4,436		168			3.8	%		4,188		5,916			3,482			1,122			32.2	%
Losses other than loans		677		381		296			77.7	%		544		1,559			(600	)		1,277			N/M
Foreclosure/OREO expense		2,083		1,575		508			32.3	%		1,896		2,829			2,515			(432	)		(17.2	%)
FDIC expense		6,859		4,945		1,914			38.7	%		5,001		4,879			4,755			2,104			44.2	%
Other		14,261		14,501		(240	)		(1.7	%)		14,931		16,091			13,509			752			5.6	%

Total noninterest expense		171,853		167,925		3,928			2.3	%		167,658		179,167			165,171			6,682			4.0	%

*Income before income taxes*		74,685		68,025		6,660			9.8	%		65,836		61,605			67,054			7,631			11.4	%
Income tax expense		24,478		21,660		2,818			13.0	%		20,637		13,847			21,396			3,082			14.4	%

*Net income*		50,207		46,365		3,842			8.3	%		45,199		47,758			45,658			4,549			10.0	%
Preferred stock dividends		1,255		1,278		(23	)		(1.8	%)		1,244		1,273			1,285			(30	)		(2.3	%)

*Net income available to common equity*	$	48,952	$	45,087	$	3,865			8.6	%	$	43,955	$	46,485		$	44,373		$	4,579			10.3	%

Earnings Per Common Share:
Basic	$	0.31	$	0.28	$	0.03			10.7	%	$	0.27	$	0.28		$	0.27		$	0.04			14.8	%
Diluted	$	0.31	$	0.28	$	0.03			10.7	%	$	0.27	$	0.28		$	0.27		$	0.04			14.8	%
Average Common Shares Outstanding:
Basic		155,925		159,940		(4,015	)		(2.5	%)		161,467		162,611			164,954			(9,029	)		(5.5	%)
Diluted		156,991		160,838		(3,847	)		(2.4	%)		162,188		163,235			165,443			(8,452	)		(5.1	%)

N/M = Not meaningful.

Page 7

Associated Banc-Corp

Selected Quarterly Information


($ in millions, except per share and full time equivalent employee data)	YTD 2014			YTD 2013			3rd Qtr 2014			2nd Qtr 2014			1st Qtr 2014			4th Qtr 2013			3rd Qtr 2013
*Per Common Share Data*
Dividends	$	0.27		$	0.24		$	0.09		$	0.09		$	0.09		$	0.09		$	0.08
Market Value:
High		18.90			17.60			18.90			18.39			18.35			17.56			17.60
Low		15.58			13.46			17.42			16.82			15.58			15.34			15.29
Close		17.42			15.49			17.42			18.08			18.06			17.40			15.49
Book value		18.15			17.10			18.15			17.99			17.64			17.40			17.10
Tier 1 common equity / share		12.10			11.59			12.10			12.04			11.88			11.77			11.59
Tangible book value / share	$	12.09		$	11.37		$	12.09		$	12.11		$	11.80		$	11.62		$	11.37

*Performance Ratios (annualized)*
Return on average assets		0.76	%		0.81	%		0.78	%		0.75	%		0.76	%		0.80	%		0.78	%
Return on average tangible common equity		9.79			9.68			10.35			9.56			9.45			9.87			9.48
Return on average Tier 1 common equity (1)		9.78			9.77			10.38			9.56			9.38			9.78			9.31
Effective tax rate		32.02			31.68			32.77			31.84			31.35			22.48			31.91
Dividend payout ratio (3)		31.40			29.27			29.03			32.14			33.33			32.14			29.63

*Average Balances*
Common stockholders’ equity	$	2,824		$	2,836		$	2,815		$	2,830		$	2,827		$	2,810		$	2,800
Average Tier 1 common equity (1)	$	1,887		$	1,876		$	1,871		$	1,892		$	1,900		$	1,885		$	1,890

*Selected Trend Information*
Average full time equivalent employees		4,435			4,776			4,359			4,431			4,517			4,584			4,699
Trust assets under management, at market value	$	7,700		$	7,078		$	7,700		$	7,720		$	7,535		$	7,424		$	7,078
Total revenue (4)	$	741		$	731		$	252		$	246		$	243		$	248		$	236
Core fee-based revenue (5)	$	172		$	167		$	54		$	60		$	57		$	57		$	58
Mortgage loans originated for sale during period	$	778		$	1,977		$	298		$	276		$	204		$	327		$	514
Mortgage portfolio serviced for others	$	8,012		$	8,014		$	8,012		$	8,052		$	8,084		$	8,084		$	8,014
Mortgage servicing rights, net / Portfolio serviced for others		0.76	%		0.79	%		0.76	%		0.76	%		0.77	%		0.78	%		0.79	%

*At Period End*
Loans / deposits								94.27	%		98.43	%		93.90	%		92.06	%		84.99	%
Risk weighted assets (6) (7)							$	18,031		$	17,911		$	17,075		$	16,694		$	16,359
Tier 1 common equity (1)							$	1,873		$	1,920		$	1,912		$	1,913		$	1,904
Stockholders’ equity / assets								11.19	%		11.39	%		11.69	%		11.93	%		12.13	%
Tangible common equity / tangible assets (8)								7.57	%		7.79	%		7.96	%		8.11	%		8.21	%
Tangible equity / tangible assets (8)								7.82	%		8.03	%		8.22	%		8.38	%		8.49	%
Tier 1 common equity / risk-weighted assets (6) (7)								10.39	%		10.72	%		11.20	%		11.46	%		11.64	%
Tier 1 leverage ratio (6) (7)								7.87	%		8.26	%		8.46	%		8.70	%		8.76	%
Tier 1 risk-based capital ratio (6) (7)								10.73	%		11.06	%		11.56	%		11.83	%		12.02	%
Total risk-based capital ratio (6) (7)								11.98	%		12.31	%		12.81	%		13.09	%		13.44	%
Shares outstanding, end of period								154,743			159,480			161,012			162,623			164,303

*Non-GAAP Financial Measures Reconciliation*
Efficiency ratio (2)		69.85	%		70.14	%		69.44	%		69.70	%		70.41	%		73.70	%		71.45	%
Taxable equivalent adjustment		(1.34	)		(1.44	)		(1.36	)		(1.32	)		(1.35	)		(1.49	)		(1.50	)
Asset gains, net		0.61			0.25			1.36			0.26			0.22			0.80			0.59
Other intangible amortization		(0.41	)		(0.42	)		(0.40	)		(0.41	)		(0.42	)		(0.42	)		(0.44	)
Efficiency ratio, fully taxable equivalent (2)		68.71	%		68.53	%		69.04	%		68.23	%		68.86	%		72.59	%		70.10	%

(1)

Tier 1 common equity, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of our capital with the capital of other financial services companies. Management uses Tier 1 common equity, along with other capital measures, to assess and monitor our capital position. Tier 1 common equity (period end and average) is Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities.

(2)

Efficiency ratio is defined by the Federal Reserve guidance as noninterest expense divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and asset gains / losses, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest income for the tax-favored status of certain loans and investment securities. Management believes this measure to be the preferred industry measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net).

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

(4)	Total revenue, a non-GAAP financial measure, is the sum of taxable equivalent net interest income, core fee-based revenues, and other noninterest income categories, as presented on Page 2 in the Consolidated Statements of Income and Page 6 in the Net Interest Income Analysis.

(5)	Core fee-based revenue, a non-GAAP financial measure, is the sum of trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions, as presented on Page 2 in the Consolidated Statements of Income.

(6)	September 30, 2014 data is estimated.

(7)

The Federal Reserve establishes capital adequacy requirements, including well-capitalized standards for the Corporation. The OCC establishes similar capital adequacy requirements and standards for the Bank. Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital. The sum of Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital. Risk-based capital guidelines require a minimum level of capital as a percentage of risk-weighted assets. Risk-weighted assets consist of total assets plus certain off-balance sheet and market items, subject to adjustment for predefined credit risk factors.

(8)

Tangible equity, tangible common equity and tangible assets exclude goodwill and other intangible assets, which is a non-GAAP financial measure. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.

Page 8

Associated Banc-Corp

Selected Asset Quality Information


(in thousands)	Sep 30, 2014			Jun 30, 2014			Sep14 vs Jun14 % Change			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep14 vs Sep13 % Change
*Allowance for Loan Losses*
Beginning balance	$	271,851		$	267,916			1.5	%	$	268,315		$	271,724		$	277,218			(1.9	%)
Provision for loan losses		(3,000	)		6,500			(146.2	%)		5,000			2,000			—			N/M
Charge offs		(14,850	)		(9,107	)		63.1	%		(11,361	)		(18,742	)		(20,288	)		(26.8	%)
Recoveries		12,261			6,542			87.4	%		5,962			13,333			14,794			(17.1	%)

Net charge offs		(2,589	)		(2,565	)		0.9	%		(5,399	)		(5,409	)		(5,494	)		(52.9	%)

Ending balance	$	266,262		$	271,851			(2.1	%)	$	267,916		$	268,315		$	271,724			(2.0	%)

*Allowance for Unfunded Commitments*
Beginning balance	$	20,400		$	21,900			(6.8	%)	$	21,900		$	21,600		$	22,400			(8.9	%)
Provision for unfunded commitments		4,000			(1,500	)		N/M			—			300			(800	)		N/M

Ending balance	$	24,400		$	20,400			19.6	%	$	21,900		$	21,900		$	21,600			13.0	%

Allowance for credit losses	$	290,662		$	292,251			(0.5	%)	$	289,816		$	290,215		$	293,324			(0.9	%)

*Net Charge Offs*	Sep 30, 2014			Jun 30, 2014			Sep14 vs Jun14 % Change			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep14 vs Sep13 % Change
Commercial and industrial	$	572		$	(1,377	)		(141.5	%)	$	2,725		$	4,555		$	(447	)		(228.0	%)
Commercial real estate—owner occupied		2,210			(550	)		N/M			(124	)		967			2,076			6.5	%
Lease financing		(6	)		29			(120.7	%)		—			(16	)		—			N/M

Commercial and business lending		2,776			(1,898	)		(246.3	%)		2,601			5,506			1,629			70.4	%
Commercial real estate—investor		(4,065	)		(239	)		N/M			(1,031	)		137			(414	)		N/M
Real estate construction		350			795			(56.0	%)		113			(3,130	)		(303	)		(215.5	%)

Commercial real estate lending		(3,715	)		556			N/M			(918	)		(2,993	)		(717	)		418.1	%

Total commercial		(939	)		(1,342	)		(30.0	%)		1,683			2,513			912			(203.0	%)
Home equity revolving lines of credit		1,098			1,380			(20.4	%)		1,182			966			767			43.2	%
Home equity loans 1st liens		118			448			(73.7	%)		406			372			564			(79.1	%)
Home equity loans junior liens		728			948			(23.2	%)		859			1,111			800			(9.0	%)

Home equity		1,944			2,776			(30.0	%)		2,447			2,449			2,131			(8.8	%)
Installment and credit cards		910			247			268.4	%		113			(611	)		124			N/M
Residential mortgage		674			884			(23.8	%)		1,156			1,058			2,327			(71.0	%)

Total consumer		3,528			3,907			(9.7	%)		3,716			2,896			4,582			(23.0	%)

Total net charge offs	$	2,589		$	2,565			0.9	%	$	5,399		$	5,409		$	5,494			(52.9	%)


Net Charge Offs to Average Loans (in basis points) *	Sep 30, 2014			Jun 30, 2014						Mar 31, 2014			Dec 31, 2013			Sep 30, 2013
Commercial and industrial		4			(10	)					22			38			(4	)
Commercial real estate—owner occupied		84			(20	)					(5	)		34			72
Lease financing		(5	)		22						—			(12	)		—

Commercial and business lending		17			(12	)					17			37			11
Commercial real estate—investor		(54	)		(3	)					(14	)		2			(6	)
Real estate construction		14			33						5			(145	)		(15	)

Commercial real estate lending		(37	)		6						(10	)		(32	)		(8	)

Total commercial		(3	)		(5	)					7			10			4
Home equity revolving lines of credit		50			64						55			44			34
Home equity loans 1st liens		7			26						23			19			27
Home equity loans junior liens		159			196						171			205			140

Home equity		45			64						55			52			44
Installment and credit cards		78			25						11			(59	)		11
Residential mortgage		6			9						12			11			25

Total consumer		22			25						25			19			30

Total net charge offs		6			6						14			14			14


*Credit Quality*	Sep 30, 2014			Jun 30, 2014			Sep14 vs Jun14 % Change			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep14 vs Sep13 % Change
Nonaccrual loans	$	184,138		$	179,226			2.7	%	$	177,978		$	185,428		$	207,594			(11.3	%)
Other real estate owned (OREO)		16,840			17,729			(5.0	%)		19,173			18,118			25,077			(32.8	%)

Total nonperforming assets	$	200,978		$	196,955			2.0	%	$	197,151		$	203,546		$	232,671			(13.6	%)

Loans 90 or more days past due and still accruing	$	1,690		$	1,776			(4.8	%)	$	723		$	2,350		$	2,063			(18.1	%)
Allowance for loan losses / loans		1.55	%		1.59	%					1.63	%		1.69	%		1.74	%
Allowance for loan losses / nonaccrual loans		144.60			151.68						150.53			144.70			130.89
Nonaccrual loans / total loans		1.07			1.05						1.08			1.17			1.33
Nonperforming assets / total loans plus OREO		1.17			1.15						1.20			1.28			1.49
Nonperforming assets / total assets		0.78			0.77						0.79			0.84			0.98
Net charge offs / average loans (annualized)		0.06			0.06						0.14			0.14			0.14
Year-to-date net charge offs / average loans		0.08			0.10						0.14			0.25			0.29
*Nonaccrual loans by type:*
Commercial and industrial	$	51,143		$	40,846			25.2	%	$	38,488		$	37,719		$	36,105			41.7	%
Commercial real estate—owner occupied		24,340			31,725			(23.3	%)		26,735			29,664			28,301			(14.0	%)
Lease financing		1,947			1,541			26.3	%		172			69			99			N/M

Commercial and business lending		77,430			74,112			4.5	%		65,395			67,452			64,505			20.0	%
Commercial real estate—investor		25,106			28,135			(10.8	%)		33,611			37,596			49,841			(49.6	%)
Real estate construction		8,187			6,988			17.2	%		6,667			6,467			18,670			(56.1	%)

Commercial real estate lending		33,293			35,123			(5.2	%)		40,278			44,063			68,511			(51.4	%)

Total commercial		110,723			109,235			1.4	%		105,673			111,515			133,016			(16.8	%)
Home equity revolving lines of credit		10,154			10,056			1.0	%		10,356			11,883			11,991			(15.3	%)
Home equity loans 1st liens		4,664			4,634			0.6	%		5,341			6,135			6,131			(23.9	%)
Home equity loans junior liens		6,443			6,183			4.2	%		6,788			7,149			7,321			(12.0	%)

Home equity		21,261			20,873			1.9	%		22,485			25,167			25,443			(16.4	%)
Installment and credit cards		653			771			(15.3	%)		915			1,114			1,269			(48.5	%)
Residential mortgage		51,501			48,347			6.5	%		48,905			47,632			47,866			7.6	%

Total consumer		73,415			69,991			4.9	%		72,305			73,913			74,578			(1.6	%)

Total nonaccrual loans	$	184,138		$	179,226			2.7	%	$	177,978		$	185,428		$	207,594			(11.3	%)

*	Annualized.

N/M = Not meaningful.

Page 9

Associated Banc-Corp

Selected Asset Quality Information (continued)


(in thousands)	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
*Restructured loans (accruing)*
Commercial and industrial	$	36,955	$	28,849		28.1	%	$	27,776	$	32,517	$	32,145		15.0	%
Commercial real estate—owner occupied		11,574		12,168		(4.9	%)		11,579		13,009		14,425		(19.8	%)

Commercial and business lending		48,529		41,017		18.3	%		39,355		45,526		46,570		4.2	%
Commercial real estate—investor		24,440		41,758		(41.5	%)		46,020		44,946		35,073		(30.3	%)
Real estate construction		805		1,224		(34.2	%)		2,954		3,793		4,825		(83.3	%)

Commercial real estate lending		25,245		42,982		(41.3	%)		48,974		48,739		39,898		(36.7	%)

Total commercial		73,774		83,999		(12.2	%)		88,329		94,265		86,468		(14.7	%)
Home equity revolving lines of credit		1,531		1,527		0.3	%		1,178		1,117		1,118		36.9	%
Home equity loans 1st liens		1,867		1,674		11.5	%		1,656		1,436		1,628		14.7	%
Home equity loans junior liens		7,184		7,243		(0.8	%)		6,738		7,080		7,113		1.0	%

Home equity		10,582		10,444		1.3	%		9,572		9,633		9,859		7.3	%
Installment and credit cards		1,106		1,185		(6.7	%)		225		246		416		165.9	%
Residential mortgage		19,141		18,753		2.1	%		18,798		19,841		20,300		(5.7	%)

Total consumer		30,829		30,382		1.5	%		28,595		29,720		30,575		0.8	%

Total restructured loans (accruing)	$	104,603	$	114,381		(8.5	%)	$	116,924	$	123,985	$	117,043		(10.6	%)

Restructured loans in nonaccrual loans (not included above)	$	63,314	$	72,388		(12.5	%)	$	74,231	$	59,585	$	69,311		(8.7	%)

*Loans Past Due 30-89 Days*	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
Commercial and industrial	$	3,947	$	2,519		56.7	%	$	4,126	$	6,826	$	6,518		(39.4	%)
Commercial real estate—owner occupied		2,675		6,323		(57.7	%)		5,342		3,106		8,505		(68.5	%)
Lease financing		—		556		(100.0	%)		567		—		1,000		(100.0	%)

Commercial and business lending		6,622		9,398		(29.5	%)		10,035		9,932		16,023		(58.7	%)
Commercial real estate—investor		15,869		2,994		430.0	%		7,188		23,215		21,747		(27.0	%)
Real estate construction		399		258		54.7	%		679		1,954		820		(51.3	%)

Commercial real estate lending		16,268		3,252		400.2	%		7,867		25,169		22,567		(27.9	%)

Total commercial		22,890		12,650		80.9	%		17,902		35,101		38,590		(40.7	%)
Home equity revolving lines of credit		6,739		6,986		(3.5	%)		5,344		6,728		6,318		6.7	%
Home equity loans 1st liens		1,503		1,685		(10.8	%)		1,469		1,110		1,376		9.2	%
Home equity loans junior liens		2,496		2,138		16.7	%		3,006		2,842		2,206		13.1	%

Home equity		10,738		10,809		(0.7	%)		9,819		10,680		9,900		8.5	%
Installment and credit cards		1,818		1,734		4.8	%		1,269		1,150		1,170		55.4	%
Residential mortgage		3,231		7,070		(54.3	%)		4,498		6,118		6,722		(51.9	%)

Total consumer		15,787		19,613		(19.5	%)		15,586		17,948		17,792		(11.3	%)

Total loans past due 30-89 days	$	38,677	$	32,263		19.9	%	$	33,488	$	53,049	$	56,382		(31.4	%)


*Potential Problem Loans*	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
Commercial and industrial	$	133,416	$	187,251		(28.8	%)	$	109,027	$	113,669	$	112,947		18.1	%
Commercial real estate—owner occupied		49,008		57,757		(15.1	%)		64,785		56,789		61,256		(20.0	%)
Lease financing		3,787		2,280		66.1	%		3,065		1,784		207		N/M

Commercial and business lending		186,211		247,288		(24.7	%)		176,877		172,242		174,410		6.8	%
Commercial real estate—investor		28,474		31,903		(10.7	%)		34,790		52,429		87,526		(67.5	%)
Real estate construction		2,227		4,473		(50.2	%)		4,870		5,263		7,540		(70.5	%)

Commercial real estate lending		30,701		36,376		(15.6	%)		39,660		57,692		95,066		(67.7	%)

Total commercial		216,912		283,664		(23.5	%)		216,537		229,934		269,476		(19.5	%)
Home equity revolving lines of credit		224		277		(19.1	%)		310		303		170		31.8	%
Home equity loans junior liens		687		822		(16.4	%)		741		1,810		2,067		(66.8	%)

Home equity		911		1,099		(17.1	%)		1,051		2,113		2,237		(59.3	%)
Installment and credit cards		4		844		(99.5	%)		—		50		67		(94.0	%)
Residential mortgage		2,166		2,445		(11.4	%)		2,091		3,312		5,342		(59.5	%)

Total consumer		3,081		4,388		(29.8	%)		3,142		5,475		7,646		(59.7	%)

Total potential problem loans	$	219,993	$	288,052		(23.6	%)	$	219,679	$	235,409	$	277,122		(20.6	%)

N/M = Not meaningful.

Page 10

Associated Banc-Corp

Net Interest Income Analysis—Taxable Equivalent Basis

Sequential Quarter


	Three months ended September 30, 2014							Three months ended June 30, 2014
	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 and business lending	$	6,652,227	$	54,990		3.28	%	$	6,468,844	$	53,519		3.32	%
Commercial real estate lending		4,019,286		37,780		3.73			3,967,848		36,309		3.67

Total commercial		10,671,513		92,770		3.45			10,436,692		89,828		3.45
Residential mortgage		4,309,121		35,264		3.27			4,077,617		33,575		3.29
Retail		2,160,327		24,968		4.60			2,132,080		24,157		4.54

Total loans		17,140,961		153,002		3.55			16,646,389		147,560		3.55
Investment securities (1)		5,619,982		36,486		2.60			5,606,279		36,865		2.63
Other short-term investments		335,774		1,503		1.79			284,847		1,862		2.62

Investments and other		5,955,756		37,989		2.55			5,891,126		38,727		2.63

Total earning assets		23,096,717	$	190,991		3.29			22,537,515	$	186,287		3.31
Other assets, net		2,375,335							2,320,557

Total assets	$	25,472,052						$	24,858,072

Interest-bearing liabilities:
Savings deposits	$	1,269,994	$	254		0.08	%	$	1,267,297	$	242		0.08	%
Interest-bearing demand deposits		3,096,712		1,111		0.14			2,894,446		969		0.13
Money market deposits		7,721,167		3,153		0.16			7,340,244		2,928		0.16
Time deposits		1,545,851		2,103		0.54			1,597,535		2,056		0.52

Total interest-bearing deposits		13,633,724		6,621		0.19			13,099,522		6,195		0.19
Federal funds purchased and securities sold under agreements to repurchase		927,904		390		0.17			847,756		306		0.14
Other short-term funding		665,647		233		0.14			832,299		280		0.13
Long-term funding		2,931,714		6,179		0.84			2,931,957		6,146		0.84

Total short and long-term funding		4,525,265		6,802		0.60			4,612,012		6,732		0.58

Total interest-bearing liabilities		18,158,989	$	13,423		0.29			17,711,534	$	12,927		0.29
Noninterest-bearing demand deposits		4,239,654							4,073,310
Other liabilities		197,330							182,110
Stockholders’ equity		2,876,079							2,891,118

Total liabilities and stockholders’ equity	$	25,472,052						$	24,858,072

Net interest income and rate spread			$	177,568		3.00	%			$	173,360		3.02	%

Net interest margin						3.06	%						3.08	%
Taxable equivalent adjustment			$	4,938						$	4,657

Net Interest Income Analysis—Taxable Equivalent Basis

Comparable Quarter


	Three months ended September 30, 2014							Three months ended September 30, 2013
	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 and business lending	$	6,652,227	$	54,990		3.28	%	$	5,876,745	$	52,215		3.53	%
Commercial real estate lending		4,019,286		37,780		3.73			3,768,895		37,630		3.96

Total commercial		10,671,513		92,770		3.45			9,645,640		89,845		3.70
Residential mortgage		4,309,121		35,264		3.27			3,714,459		30,479		3.28
Retail		2,160,327		24,968		4.60			2,364,266		26,816		4.51

Total loans		17,140,961		153,002		3.55			15,724,365		147,140		3.72
Investment securities (1)		5,619,982		36,486		2.60			4,980,228		32,282		2.59
Other short-term investments		335,774		1,503		1.79			334,874		1,260		1.51

Investments and other		5,955,756		37,989		2.55			5,315,102		33,542		2.52

Total earning assets		23,096,717	$	190,991		3.29			21,039,467	$	180,682		3.42
Other assets, net		2,375,335							2,274,110

Total assets	$	25,472,052						$	23,313,577

Interest-bearing liabilities:
Savings deposits	$	1,269,994	$	254		0.08	%	$	1,204,743	$	249		0.08	%
Interest-bearing demand deposits		3,096,712		1,111		0.14			2,810,962		1,101		0.16
Money market deposits		7,721,167		3,153		0.16			7,556,050		3,449		0.18
Time deposits		1,545,851		2,103		0.54			1,773,760		2,818		0.63

Total interest-bearing deposits		13,633,724		6,621		0.19			13,345,515		7,617		0.23
Federal funds purchased and securities sold under agreements to repurchase		927,904		390		0.17			633,594		308		0.19
Other short-term funding		665,647		233		0.14			1,417,113		434		0.12
Long-term funding		2,931,714		6,179		0.84			614,708		6,866		4.47

Total short and long-term funding		4,525,265		6,802		0.60			2,665,415		7,608		1.14

Total interest-bearing liabilities		18,158,989	$	13,423		0.29			16,010,930	$	15,225		0.38
Noninterest-bearing demand deposits		4,239,654							4,264,304
Other liabilities		197,330							175,453
Stockholders’ equity		2,876,079							2,862,890

Total liabilities and stockholders’ equity	$	25,472,052						$	23,313,577

Net interest income and rate spread			$	177,568		3.00	%			$	165,457		3.04	%

Net interest margin						3.06	%						3.13	%
Taxable equivalent adjustment			$	4,938						$	4,948

(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.

Page 11

Associated Banc-Corp

Net Interest Income Analysis—Taxable Equivalent Basis

Year Over Year


	Nine months ended September 30, 2014							Nine months ended September 30, 2013
	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 and business lending	$	6,419,328	$	160,189		3.34	%	$	5,785,024	$	156,541		3.62	%
Commercial real estate lending		3,965,242		109,681		3.70			3,695,150		109,298		3.95

Total commercial		10,384,570		269,870		3.47			9,480,174		265,839		3.75
Residential mortgage		4,105,892		101,503		3.30			3,666,556		91,074		3.31
Retail		2,163,771		73,538		4.54			2,487,723		84,487		4.54

Total loans		16,654,233		444,911		3.57			15,634,453		441,400		3.77
Investment securities (1)		5,559,398		110,273		2.64			4,930,195		97,340		2.63
Other short-term investments		299,692		4,814		2.14			327,209		3,740		1.53

Investments and other		5,859,090		115,087		2.62			5,257,404		101,080		2.56

Total earning assets		22,513,323	$	559,998		3.32			20,891,857	$	542,480		3.47
Other assets, net		2,339,067							2,328,652

Total assets	$	24,852,390						$	23,220,509

Interest-bearing liabilities:
Savings deposits	$	1,244,483	$	715		0.08	%	$	1,185,059	$	693		0.08	%
Interest-bearing demand deposits		2,930,236		2,903		0.13			2,819,585		3,470		0.16
Money market deposits		7,413,513		8,906		0.16			7,178,857		10,304		0.19
Time deposits		1,600,472		6,451		0.54			1,891,026		9,460		0.67

Total interest-bearing deposits		13,188,704		18,975		0.19			13,074,527		23,927		0.24
Federal funds purchased and securities sold under agreements to repurchase		860,732		1,001		0.16			696,343		1,051		0.20
Other short-term funding		610,055		629		0.14			1,357,230		1,291		0.13
Long-term funding		2,955,797		18,836		0.85			779,079		22,833		3.91

Total short and long-term funding		4,426,584		20,466		0.62			2,832,652		25,175		1.19

Total interest-bearing liabilities		17,615,288	$	39,441		0.30			15,907,179	$	49,102		0.41
Noninterest-bearing demand deposits		4,160,025							4,214,265
Other liabilities		191,802							200,123
Stockholders’ equity		2,885,275							2,898,942

Total liabilities and stockholders’ equity	$	24,852,390						$	23,220,509

Net interest income and rate spread			$	520,557		3.02	%			$	493,378		3.06	%

Net interest margin						3.09	%						3.15	%
Taxable equivalent adjustment			$	14,251						$	15,034

(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.

Page 12

Associated Banc-Corp

Financial Summary and Comparison

Period End Loan Composition


	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
Commercial and industrial	$	5,603,899	$	5,616,205		(0.2	%)	$	5,222,141	$	4,822,680	$	4,703,056		19.2	%
Commercial real estate—owner occupied		1,014,335		1,070,463		(5.2	%)		1,098,089		1,114,715		1,147,352		(11.6	%)
Lease financing		52,600		51,873		1.4	%		52,500		55,483		51,727		1.7	%

Commercial and business lending		6,670,834		6,738,541		(1.0	%)		6,372,730		5,992,878		5,902,135		13.0	%
Commercial real estate—investor		3,043,361		2,990,732		1.8	%		3,001,219		2,939,456		2,847,152		6.9	%
Real estate construction		982,426		1,000,421		(1.8	%)		969,617		896,248		834,744		17.7	%

Commercial real estate lending		4,025,787		3,991,153		0.9	%		3,970,836		3,835,704		3,681,896		9.3	%

Total commercial		10,696,621		10,729,694		(0.3	%)		10,343,566		9,828,582		9,584,031		11.6	%
Home equity revolving lines of credit		880,435		866,042		1.7	%		856,679		874,840		875,703		0.5	%
Home equity loans 1st liens		619,774		659,598		(6.0	%)		705,835		742,120		794,912		(22.0	%)
Home equity loans junior liens		176,316		187,732		(6.1	%)		199,488		208,054		220,763		(20.1	%)

Home equity		1,676,525		1,713,372		(2.2	%)		1,762,002		1,825,014		1,891,378		(11.4	%)
Installment and credit cards		459,682		469,203		(2.0	%)		393,321		407,074		420,268		9.4	%
Residential mortgage		4,326,262		4,132,783		4.7	%		3,942,555		3,835,591		3,690,177		17.2	%

Total consumer		6,462,469		6,315,358		2.3	%		6,097,878		6,067,679		6,001,823		7.7	%

Total loans	$	17,159,090	$	17,045,052		0.7	%	$	16,441,444	$	15,896,261	$	15,585,854		10.1	%


*Period End Deposit and Customer Funding Composition*
	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
Noninterest-bearing demand	$	4,302,454	$	4,211,057		2.2	%	$	4,478,981	$	4,626,312	$	4,453,663		(3.4	%)
Savings		1,256,567		1,275,493		(1.5	%)		1,252,669		1,159,512		1,195,944		5.1	%
Interest-bearing demand		3,637,411		2,918,900		24.6	%		3,084,457		2,889,705		2,735,529		33.0	%
Money market		7,491,460		7,348,650		1.9	%		7,069,173		6,906,442		8,199,281		(8.6	%)
Brokered CDs		9,242		44,809		(79.4	%)		51,235		50,450		56,024		(83.5	%)
Other time		1,504,124		1,517,350		(0.9	%)		1,573,412		1,634,746		1,697,467		(11.4	%)

Total deposits		18,201,258		17,316,259		5.1	%		17,509,927		17,267,167		18,337,908		(0.7	%)
Customer repo sweeps		493,451		489,886		0.7	%		548,179		419,247		515,555		(4.3	%)

Total deposits and customer funding	$	18,694,709	$	17,806,145		5.0	%	$	18,058,106	$	17,686,414	$	18,853,463		(0.8	%)

Network transaction deposits included above in interest-bearing demand & money market	$	2,207,055	$	2,238,923		(1.4	%)	$	2,141,976	$	1,936,403	$	2,222,810		(0.7	%)
Brokered CDs		9,242		44,809		(79.4	%)		51,235		50,450		56,024		(83.5	%)

Total network and brokered funding		2,216,297		2,283,732		(3.0	%)		2,193,211		1,986,853		2,278,834		(2.7	%)

Net customer deposits and funding (1)	$	16,478,412	$	15,522,413		6.2	%	$	15,864,895	$	15,699,561	$	16,574,629		(0.6	%)

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



*Quarter Average Loan Composition*
	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
Commercial and industrial	$	5,558,135	$	5,335,488		4.2	%	$	4,983,943	$	4,709,435	$	4,680,582		18.7	%
Commercial real estate—owner occupied		1,043,001		1,081,552		(3.6	%)		1,093,114		1,119,186		1,142,919		(8.7	%)
Lease financing		51,091		51,804		(1.4	%)		54,128		53,817		53,244		(4.0	%)

Commercial and business lending		6,652,227		6,468,844		2.8	%		6,131,185		5,882,438		5,876,745		13.2	%
Commercial real estate—investor		3,013,210		3,014,827		(0.1	%)		2,993,046		2,878,176		2,940,115		2.5	%
Real estate construction		1,006,076		953,021		5.6	%		914,317		858,138		828,780		21.4	%

Commercial real estate lending		4,019,286		3,967,848		1.3	%		3,907,363		3,736,314		3,768,895		6.6	%

Total commercial		10,671,513		10,436,692		2.2	%		10,038,548		9,618,752		9,645,640		10.6	%
Home equity revolving lines of credit		875,388		866,952		1.0	%		868,614		876,938		882,478		(0.8	%)
Home equity loans 1st liens		638,592		681,607		(6.3	%)		724,995		767,857		826,653		(22.7	%)
Home equity loans junior liens		181,880		193,727		(6.1	%)		203,984		214,557		227,021		(19.9	%)

Home equity		1,695,860		1,742,286		(2.7	%)		1,797,593		1,859,352		1,936,152		(12.4	%)
Installment and credit cards		464,467		389,794		19.2	%		401,742		413,236		428,114		8.5	%
Residential mortgage		4,309,121		4,077,617		5.7	%		3,926,734		3,856,944		3,714,459		16.0	%

Total consumer		6,469,448		6,209,697		4.2	%		6,126,069		6,129,532		6,078,725		6.4	%

Total loans	$	17,140,961	$	16,646,389		3.0	%	$	16,164,617	$	15,748,284	$	15,724,365		9.0	%


*Quarter Average Deposit Composition*
	Sep 30, 2014		Jun 30, 2014		Sep14 vs Jun14 % Change			Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep14 vs Sep13 % Change
Noninterest-bearing demand	$	4,239,654	$	4,073,310		4.1	%	$	4,166,305	$	4,353,315	$	4,264,304		(0.6	%)
Savings		1,269,994		1,267,297		0.2	%		1,195,337		1,200,338		1,204,743		5.4	%
Interest-bearing demand		3,096,712		2,894,446		7.0	%		2,796,247		2,852,090		2,810,962		10.2	%
Money market		7,721,167		7,340,244		5.2	%		7,173,106		7,748,650		7,556,050		2.2	%
Time deposits		1,545,851		1,597,535		(3.2	%)		1,659,277		1,727,138		1,773,760		(12.8	%)

Total deposits	$	17,873,378	$	17,172,832		4.1	%	$	16,990,272	$	17,881,531	$	17,609,819		1.5	%

Page 13

EX-99.2

ASSOCIATED BANC-CORP

3Q 2014 EARNINGS PRESENTATION

OCTOBER 16, 2014

Exhibit 99.2

FORWARD-LOOKING STATEMENTS

Important note regarding forward-looking statements:

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

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

statements regarding management’s plans, objectives, or goals for future operations, products or

services, and forecasts of its revenues, earnings, or other measures of performance.

Such

forward-looking statements may be identified by the use of words such as

“believe”, “expect”,

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

Forward-

looking statements are based on current management expectations and, by their nature, are

subject to risks and uncertainties. Actual results may differ materially from those contained in the

forward-looking statements.

Factors which may cause actual results to differ materially from those

contained in such forward-looking statements include those identified in the Company’s most

recent Form 10-K and subsequent SEC filings.

Such factors are incorporated herein by reference.

2014 THIRD QUARTER HIGHLIGHTS

Loan Growth and Credit Quality Drive Strong Results

•

Average loans of $17.1 billion were up $495 million; up 3% from the second quarter

–

Total average commercial loans grew $235 million from the second

quarter

–

Average residential mortgage loans grew $231 million from the second quarter

•

Net interest income of $173 million was up $4 million, or 2% from the second quarter

–

Interest on loans was up $5 million, or 4% from the second quarter

•

Net interest margin of 3.06%, down 2 bps from the second quarter

•

Provision for credit loss of $1 million, down $4 million from the second quarter

•

Quarterly dividend of $0.09 / common share, or 29% of third quarter earnings

•

Repurchased 5 million shares of common stock during the third quarter

•

Capital ratios remain strong and above Basel III targets

•

Noninterest income of $75 million was up $3 million compared to the second quarter

•

Noninterest expense of $172 million was up 2% compared to the second quarter

–

$2 million of expense related fall marketing campaign

•

Net income available to common shareholders of $49 million or $0.31 per share

•

Pretax income of $75 million was up $7 million, or 10% from the second quarter

•

Return on Tier 1 Common Equity of 10.4% for the third quarter

Net Interest Income

Net Interest Margin

Noninterest Income

Expenses

Capital

Balance Sheet

Net Income

ROT1CE

LOAN PORTFOLIO COMPOSITION

3Q 2014 Average Net Loan Change (+$495 mln)

Loan Mix –

3Q 2014 (Average)

Average Quarterly Loans ($ in billions)

$13.4

$14.9

$15.7

$16.6

$17.1

COMMERCIAL LINE UTILIZATION TRENDS

Line utilization increased in Commercial & Business Lending

Change from 2Q 14

Commercial Real

Estate (including

construction)

320 bps

Commercial &

Business Lending

+ 170 bps

GROWING NET INTEREST INCOME WHILE

MARGIN COMPRESSES

Yield on Interest-earning Assets

Cost of Interest-bearing Liabilities

Net Interest Income & Net Interest Margin

NONINTEREST INCOME TRENDS

($ IN MILLIONS)

–

Core

Fee-based

Revenue

Trust

service

fees

plus

Service

charges

deposit

accounts

plus

Card-based

and

other

nondeposit

fees

plus Insurance commissions plus Brokerage and annuity commissions. This is a non-GAAP measure. Please refer to press release tables

for more information.

–

Other

Noninterest

Income

Total

Noninterest

Income

minus

Core

Fee-based

Revenue.

NONINTEREST EXPENSE TRENDS

($ IN MILLIONS)

–

Efficiency

ratio

Noninterest

expense,

excluding

amortization

intangibles,

divided

sum

taxable

equivalent

net

interest

income

plus

noninterest

income,

excluding investment securities gains, net, and asset gains, net. This is a non-GAAP financial measure. Please refer to the appendix for a reconciliation of this.

–

FTE

= Average Full Time Equivalent Employees

–

Technology

Spend

Technology

and

Equipment

expenses

–

Other

Non-Personnel

Spend

Total

Noninterest

Expense

less

Personnel

and

Technology

spend

CREDIT QUALITY INDICATORS

($ IN MILLIONS)

APPENDIX

RECONCILIATION AND DEFINITIONS OF

NON-GAAP ITEMS

3Q 2013

4Q 2013

1Q 2014

2Q 2014

3Q 2014

Efficiency Ratio Reconciliation:

Efficiency ratio (1)

71.45%

73.70%

70.41%

69.70%

69.44%

Taxable equivalent adjustment

(1.50)

(1.49)

(1.35)

(1.32)

(1.36)

Asset gains, net

0.59

0.80

0.22

0.26

1.36

Other intangible amortization

(0.44)

(0.42)

(0.41)

(0.40)

Efficiency ratio, fully taxable equivalent (1)

70.10%

72.59%

68.86%

68.23%

69.04%

(1)

Efficiency

ratio

defined

the

Federal

Reserve

guidance

noninterest

expense

divided

the

sum

net

interest

income

plus

noninterest

income, excluding investment securities gains / losses, net. Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other

intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities

gains / losses, net and asset gains / losses, net. This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest

income for the tax-favored status of certain loans and investment securities. Management believes this measure to be the preferred industry

measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it

excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net).