Associated Banc-Corp Investor Presentation

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. 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 Form10-K and any subsequent Form 10-Q.

Important

Note

Regarding

Forward-Looking

Statements:

Leading Midwest Banking Franchise

•

$22 billion in assets

•

Approximately 270 banking offices

•

Top 50 U.S. bank holding company

•

Largest bank headquartered in Wisconsin

•

mortgage

originator

and

SBA

lender

Wisconsin

•

Known for its strong relationships with the communities it

serves, with roots that trace back to the First National Bank of

Neenah, founded in 1861

•

Strong capital ratios

•

Tier 1 Common:

12.44%

•

Total Capital Ratio:

15.81%

*FDIC market share data 6/30/11

St. Louis

Chicago

Neenah

Rockford

La Crosse

Hudson

Manitowoc

Madison

Minneapolis

Green Bay

Wausau

Stevens Point

Appleton

Peoria

Milwaukee

Based on 2010 number of funded mortgage loans per HMDA data

Based on 2011 FY number of funded SBA loans

No. 1

Top 4

Top 8

#3 Wisconsin

194

$9.8B

#6 Minnesota

$1.3B

#18 Illinois

$3.0B

Market Share*

Offices*

Deposits*

ASBC Vision Statement

Associated Banc-Corp will be the most admired Midwestern financial services company,

distinguished by sound, value-added financial solutions with personal service for our

customers, built upon a strong commitment to our colleagues and the communities we serve,

resulting in exceptional value for our shareholders.

Execution of Strategic Plan Well Under Way

Management Team

Has Driven Results

•

Aggressively reduced legacy problem credits

•

Completed the repurchase of remaining TARP funds, in a shareholder friendly manner

•

The OCC Memorandum of Understanding has been terminated

•

Proven ability to grow loans and deposits in a disciplined manner

Well Positioned for

Growth in the

Midwest Market

Improved Credit

Quality Trends

Strong Capital and

Liquidity Position

•

Upper Midwest has outpaced the broader economy

•

Continuing growth in manufacturing, auto, and agricultural sectors providing regional

stimulus

•

Nonperforming assets at the lowest level since 2008

•

Loan loss reserves now cover nearly 100% of nonaccrual loans

•

Improving credit leverage in 2012

•

Credit ratings outlook is stable from all major agencies (A3/BBB)

•

ASBC capital ratios compare favorably to peers and far exceed well-capitalized

regulatory benchmarks

•

Capital and liquidity exceed Basel III guidelines; improved dividend outlook

Organic Growth

Opportunities

•

Increasing Commercial relationships and consumer household penetration

•

Differentiating Retail Banking solutions and enhancing footprint

•

Disruptions in major metro markets creating opportunities for further market share gains

Attractive Midwest Markets

Wisconsin

•

Population: 5.6 million

•

GSP

: $248 billion

•

Unemployment

: 7.8%

Minnesota

•

Population: 5.3 million

•

GSP

: $270 billion

•

Unemployment

: 6.9%

Illinois

•

Population: 12.8 million

•

GSP

: $652 billion

•

Unemployment

: 10.0%

U.S (National)

•

Unemployment

: 9.1%

Employment

•

Wisconsin and Minnesota posted job gains in September and continue to

show above average employment levels

•

Gains in Wisconsin are wide-spread, with 67 of 72 counties showing an

improvement

unemployment

levels

Output

Outlook

•

Chicago Fed’s Midwest Manufacturing Index continues to strengthen

•

Midwest Manufacturing is up 7.2% year-over-year (vs. 4.3% nationally)

•

Midwest Machinery output is up 15.5% year-over year

•

Wisconsin expects to add 136,000 jobs by 2014

•

Wisconsin unemployment rate is expected to fall through 2014

•

Wisconsin building permits likely bottomed in mid-2011 and is expected to

grow strongly in 2012, 2013, and 2014

•

Minnesota is expected to have continuing job growth on a year-over-year

basis

and

better

than

sales

growth

year-over-year

2012

Source: Gross State Product: 2010 GDP by state from the Bureau

of Economic Analysis; Source: U.S. Bureau of

Labor Statistics, Sept. 2011; Source: State of Wisconsin Department of Workforce Development; Source: FRB

Chicago; Source: Wisconsin Department of Revenue Economic Outlook, Fall 2011; Source: Fitch Ratings

Source: FRB

Source: Fitch Ratings

Growing Commercial Relationships

•

Focus on commercial growth in key markets

–

Net production and line draws of $198 million for 3Q11

•

Portfolio of specialty niches with dedicated resources

–

Mortgage warehouse growth of $70 million in 3Q11

–

Oil & Gas segment growth of $30 million in 3Q11

•

Regional and owner-occupied CRE growth of $39 million in 3Q11

•

Investing in Treasury Management capabilities and talent

Commercial &

Business Lending

Commercial Real

Estate Lending

•

Clarified organizational responsibility with expanded expertise in key markets

•

Proactive monitoring of portfolio composition and trends

•

Portfolio grew by $108 million to $3.0 billion in 3Q11

•

Selective geographic expansion

–

Opened offices in Indianapolis and Cincinnati in 1Q11

–

Closed first CRE loans in IN and OH in 2Q11

–

Added commercial bankers to the Indianapolis office in 3Q11 to provide full

relationship banking

Note:

CB&L includes C&I, Leasing, and Owner-occupied CRE

CREL includes Investor CRE and Construction

Growing Household Relationships

•

Focusing on core Wealth disciplines and business development activities

•

Leveraging Private Banking as center of client relationship

•

Build out of specialized segments

•

Deepening the bench strength with the addition of new talent

•

Product and service enhancements to drive results in affluent client base

Wealth

Retail Banking

•

Strengthening the basics

–

Strengthening our focus on our premier banking customers

–

Enhancing our branch footprint

–

Expanding the scope and reach of our market-leading mortgage franchise

•

Building distinctiveness in core business units: Consumer Banking, Residential Lending,

Business Banking, Retail Payments, Retail Brokerage

•

Focusing on changing environment in payment systems

Differentiating Associated in Retail Banking

•

We are differentiating ourselves with our retail bank through investments in our Premier Banking

program and leveraging our relationship with the Green Bay Packers & Aaron Rodgers

Packers Banking

Premier Banking

Top 7% of Retail Households

At least 1 specially-trained, designated

Premier Banker in each branch

Dedicated concierge number

Immediate funds availability on deposits

New debit and credit cards

Many other benefits, including identity

theft protection

Further promoting strong affinity (balances,

cross-sell, retention all over-index)

Introduced partnership with Aaron Rodgers

Proven Ability to Grow Loans in Current Economy

Total Loans of $13.5 billion at September 30, 2011

Loan Mix –

3Q 2011

Total Loans ($ in billions)

+3% QoQ

Peak Loans (4Q 2008) $16.3 billion

•

Building our loan book

•

Strong Commercial loan growth trend

•

Leading Mortgage originator in Wisconsin

•

Well-balanced book of business

$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

19%

Construction

Commercial &

Business

Lending

33%

Res Mtg

21%

Home Equity

19%

Consumer

Disciplined Approach to Funding

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)

0.54%

0.47%

0.37%

0.33%

0.30%

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

1.03%

0.98%

0.89%

0.91%

0.83%

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

Significant Improvements in Credit Quality Indicators

($ in millions)

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

Provision for loan losses

$ 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%

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%

Improving Profitability and Outlook

Net Income and ROAA

Quarterly Results Reflect Positive Trends

•

Net income to common shareholders of $0.20 per share for the third quarter

•

Pre-tax income improved 33%, or $15 million, and net income to common shareholders

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

$14

$23

$34

$41

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

$10

$20

$30

$40

$50

3Q 2010

4Q 2010

1Q 2011

2Q 2011

3Q 2011

Net Income

ROAA

TARP and Regulatory MOU Update

•

Repurchase of TARP funded primarily through senior note and preferred stock

offerings

•

OCC Memorandum of Understanding terminated

–

Bank-level capital and dividend constraints removed

Completed TARP Repayment in a Shareholder-friendly Manner

Relative Shareholder Friendliness Scale

$430 mm

Senior Notes

$65 mm

8% Retail Preferred

~$30 mm

Cash-on-hand

$0 mm

No Common Stock

Outlook

•

Credit metrics and trends continue to improve

•

Positive commercial and consumer loan trends as a result of our investments in our

franchise

•

Expect continued positive funding dynamics, including core deposit growth and run-off

of securities to fund loans

•

Revenue headwinds, due to both interest rate and regulatory environment

•

We will continue to invest in our franchise in a disciplined manner

Why Associated

•

Upper Midwest continues to outpace the broader

economy, with employment and output levels

above national averages

•

Continuing growth in manufacturing, auto, and

agricultural sectors providing regional stimulus

Attractive Midwest Markets

Organic Growth Opportunity

Proven Track Record of Results

Opportunities for Capital Deployment

Building Value in Our Franchise

•

Capitalizing on competitive disruptions in our markets

•

Re-mixing from securities into loans provides an

opportunity for margin retention/expansion despite a

flat rate environment

•

Continuing improvements in core funding base from

enhanced customer acquisition and retention

•

Strong balance sheet with ample liquidity

•

Capital levels exceeding Basel III guidelines

•

Opportunity to increase dividends in 2012

•

Aggressively addressed legacy problem credits

•

Improved core profitability

•

Exited TARP in a shareholder-friendly manner

•

Investing in our brand, our footprint, and our

people in a disciplined and investor centric manner

Strong and Low Cost Funding Profile

($ 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

0.11

Interest-bearing demand

1,931,519

2,071,627

140,108

0.18

Money market

4,982,492

5,205,401

222,909

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

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

Network transaction deposits

824,003

875,630

51,627

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

Jun 11 vs Sep 11

Period End Deposit and Customer Funding Composition

High Quality Investment Securities Portfolio

Investment Portfolio –

September 30, 2011

Market Value Composition –

September 30, 2011

Portfolio Composition Ratings –

September 30, 2011

Type

Bk Value

(000’s)

Mkt Value

(000’s)

TEY

(%)

Duration

(Yrs)

Govt &

Agencies

$ 26,290

$ 26,318

0.68

0.53

MBS

1,455,622

1,559,143

4.58

1.26

CMOs

2,717,182

2,754,018

2.49

1.46

Municipals

782,806

827,385

5.74

4.89

ABS

213,955

213,234

0.41

0.23

Corporates

63,074

62,005

1.33

0.41

Other

9,813

11,713

---

TOTAL AFS

$5,268,742

$5,453,816

3.44

1.85

Credit Rating

(& in millions)

Mkt Value

% of Total

Govt & Agency

$ 4,294,998

78.8%

AAA

228,369

4.2%

757,144

13.9%

89,933

1.6%

BAA1, BAA2 & BAA3

17,731

0.3%

BA1 & Lower

41,596

0.8%

Non-rated

24,045

0.4%

Total

$5,453,816

100.0%

MBS

29%

CMOs

50%

Municipals

15%

ABS

All Other

1 %

Govt

Agencies

Loan Portfolio Trends

($ 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

Lease financing

54,001

54,849

848

Commercial real estate - owner occupied

1,030,060

1,068,616

38,556

Commerical and business lending

4,286,362

4,483,967

197,605

Commercial real estate - investor

2,393,626

2,481,411

87,785

Real estate - construction

533,804

554,024

20,220

Commercial real estate lending

2,927,430

3,035,435

108,005

Total commercial

7,213,792

7,519,402

305,610

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

4.09

Total Loans

13,089,589

13,503,507

413,918

4.36

Jun 11 vs Sep 11

Period End Loan Composition

Residential Mortgage and Home Equity

Residential Mortgage portfolio of $2.8 billion

21% of Total Loans, at Sept. 30, 2011

Home Equity portfolio of $2.6 billion

19% of Total Loans, at Sept. 30, 2011

Wisconsin

58%

Illinois

26%

Minnesota

Other

Wisconsin

66%

Illinois

16%

Minnesota

18%

Wisconsin

71%

Illinois

16%

Minnesota

11%

Other

Wisconsin

56%

Illinois

20%

Minnesota

24%

Portfolio Mortgage Balance by State

Home Equity Balance by State

Portfolio Mortgage NCOs by State

Home Equity NCOs by State

Investor Commercial Real Estate and Construction

Investor CRE portfolio of $2.5 billion

18% of Total Loans, at Sept. 30, 2011

Construction portfolio of $554 million

4% of Total Loans, at Sept. 30, 2011

Investor CRE Loans by State

Construction Loans by State

Investor CRE Loans by Collateral

Construction Loans by Collateral

Wisconsin

53%

Illinois

19%

Minnesota

16%

Other

Missouri

Florida

Office/Mixed Use

28%

Multi

-Family

26%

Retail

21%

Other

10%

Industrial

Hotel/Motel

Single

Family/Condo

Land

Wisconsin

35%

Illinois

31%

Minnesota

17%

Colorado

Other

Missouri

Retail

29%

Land

27%

Single

Family/Condo

12%

Other

Multi

-Family

Office

Industrial

Mixed Use

Commercial & Business Lending Loans by State

Commercial & Business Lending Loans

Commercial

Business

Lending

portfolio

$4.4

billion,

33%

Total

Loans,

Sept.

30,

2011

Commercial & Business Lending Loans by Industry

Wisconsin

45%

Illinois

22%

Minnesota

17%

Other

16%

Other

22%

21%

Real Estate &

Rental/Leasing

14%

Finance

Insurance

11%

Wholesale Trade

10%

Retail Trade

Health Care &

Social Assistance

Professional,

Scientific

, &

Technical

Services, 5%

Transportation &

Warehousing

Manufacturing

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%)

($ in millions)