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Form 8-K ASSOCIATED BANC-CORP For: Jan 22

January 22, 2015 4:13 PM EST

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) January�22, 2015

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 January�22, 2015, Associated Banc-Corp announced its earnings for the quarter ended December�31,�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 January�22, 2015, 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 January�22, 2015, containing financial information for the quarter ended December�31, 2014.

99.2 Slide presentation discussed on the conference call for investors and analysts on January�22, 2015.


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: January�22, 2015 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 January 22, 2015, containing financial information for the quarter ended December�31,�2014.
99.2 �� Slide presentation discussed on the conference call for investors and analysts on January 22, 2015.

Exhibit 99.1

LOGO ��

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 2014 Earnings of $1.16 per share on Record

Loans and Deposits

Fourth Quarter Earnings of $0.31 per share, up 11% from last year

GREEN BAY, Wis. �� January�22, 2015 �� Associated Banc-Corp (NYSE: ASB) today reported net income to common shareholders of $186 million, or $1.16 per common share, for the year ended December�31, 2014. This compares to net income to common shareholders of $184 million, or $1.10 per common share, for the year ended December�31, 2013.

For the quarter ended December�31, 2014, the Company reported earnings per share of $0.31 per common share. This compares to $0.28 per common share, for the quarter ended December�31, 2013.

�Overall we are pleased with this year�s financial results and accomplishments. We continued to grow our balance sheet, total revenues, and bottom line earnings. In addition, we have continued to make substantial investments in the bank which will position us for the future, while slightly reducing total expenses� said President and CEO Philip B. Flynn. �We remain focused on opportunistic ways to deploy capital while delivering increased value to our shareholders. We are also happy to kick off 2015 with last week�s announcement regarding the acquisition of the insurance agency, Ahmann-Martin.�

2014 HIGHLIGHTS

Average loans grew $1.2 billion, or 8% from a year ago to $16.8 billion

Average total commercial loan balances grew $1 billion, or 10% from last year

Average deposits grew $209 million, or 1% from a year ago to $17.6 billion

Average checking balances grew $119 million, or 2% from last year

Net interest income of $681 million increased $35 million, or 5% from last year

Noninterest expenses of $679 million were down slightly from 2013

During the year, the Company repurchased $259 million, or approximately 14.3�million shares, of common stock at an average cost of $18.12 per share

Return on Tier 1 common equity for 2014 was 9.9%

2014 fourth quarter return on Tier 1 common equity was 10.4%

Total dividends per common share of $0.37 in 2014 were up 12% from last year

Capital ratios remain strong with a Tier 1 common equity ratio of 9.74% at year end

� more �


FOURTH QUARTER AND 2014 FINANCIAL RESULTS

Loans

Average loans of $16.8 billion for 2014 were up $1.2 billion, or 8% from 2013. Total average commercial loans for 2014 grew $1 billion, or 10% from a year ago to $10.5 billion. Commercial and business lending average balances grew $686 million, or 12% from 2013. Commercial real estate lending average balances grew $285 million, or 8% from 2013. Residential mortgage average balances for 2014 grew $488 million, or 13% from a year ago to $4.2 billion. Offsetting part of the 2014 total loan growth was the continued run off in home equity balances, with an average balance decline of $276 million, or 14% from 2013.

Fourth quarter 2014 average loans increased $246 million, or 1% from the third quarter and have increased $1.6 billion, or 10% from the year ago quarter. Growth in residential mortgage and commercial loans was partially offset by declines in the home equity and installment loan portfolios.

For the period ended December�31, 2014, total loans of $17.6 billion were up $435 million, or 3% from the end of the prior quarter, and were up $1.7 billion, or 11% from December�31, 2013. Total commercial loans of $11 billion at December�31, 2014 were up $1.2 billion, or 12% from the prior year end.

Deposits

2014 average deposits of $17.6 billion were up $209 million, or 1% from 2013. Total average checking, savings, and money market balances growth of $471 million was partially offset by declines in time deposit balances of $262 million during the year.

Average deposits of $18.5 billion for the fourth quarter were up $659 million, or 4% compared to the third quarter and have increased $651 million, or 4%, from the year ago quarter. Money market average balances increased $488 million, or 6% from the third quarter and are up $460 million, or 6% from the year ago quarter. Fourth quarter average checking balances increased $173 million, or 2% from the third quarter and are up $304 million, or 4% from the year ago quarter.

For the period ended December�31, 2014, total deposits of $18.8 billion were up $562 million, or 3% from the end of the prior quarter, and were up $1.5 billion, or 9% from December�31, 2013. Money market balances of $8.3 billion at December�31, 2014 were up $1.4 billion, or 21% from the prior year end.

Net Interest Income and Net Interest Margin

Net interest income of $681 million for 2014 was up $35 million, or 5% from 2013. Fourth quarter net interest income of $175 million increased 1% from the prior quarter and was up $7 million, or 4% compared to the year ago quarter.

- more �


Net interest margin of 3.08% for 2014 declined 9 basis points from 2013. Fourth quarter net interest margin was 3.04%, a decrease of 2 basis points from the 3.06% reported in the third quarter and a decrease of 19 basis points from a year ago.

Fourth quarter asset yields of 3.32% were up 3 basis points from the prior quarter. Asset yield compression was more than offset by interest recoveries and prepayment fees of nearly $5 million. The net interest margin impact of this $5 million was approximately 8 basis points during the quarter.

Total interest-bearing funding costs of 0.35% were up 6 basis points from the third quarter. Long-term funding costs increased in the fourth quarter as a result of the $500 million debt issued in November. The net effect of this transaction decreased net interest margin by approximately 5 basis points for the quarter.

Noninterest Income and Expense

Noninterest income of $290 million for 2014 was down $23 million, or 7% compared to 2013. This decline was primarily attributed to net mortgage banking income, which was down $28 million, or 56% from 2013.

Fourth quarter noninterest income was $70 million, down $5 million, or 7% from the third quarter and down $6 million, or 8% from the year ago quarter. Mortgage banking income declined $4 million from the prior quarter and $5 million from the year ago quarter. Insurance commissions increased $3 million from the prior quarter, primarily related to the establishment of a $4 million reserve in the third quarter for remediation on legacy debt protection products. Fourth quarter asset gains declined $1 million from the prior quarter.

2014 total noninterest expense of $679 million was down slightly from 2013. Increases in technology, FDIC, and advertising expenses were more than offset by declines in personnel, occupancy, professional fees and foreclosure/OREO expenses.

Total noninterest expense for the fourth quarter of $172 million was flat compared to the third quarter and down $7 million from the year ago quarter.

Taxes

2014 income taxes of $86 million were up $6 million from 2013. The effective tax rate for 2014 was 31% compared to 30% last year.

Credit

Net charge offs of $4 million for the fourth quarter were up $2 million from the third quarter, but are down $1 million from the year ago quarter. Potential problem loans of $190 million declined $30 million, or 13% from the prior quarter. The fourth quarter provision for credit losses of $5 million was up $4 million from the prior quarter.

- more �


The Company�s allowance for loan losses was $266 million, equal to 1.51% of loans and reflects a coverage ratio of 150% of nonaccrual loans at December�31, 2014.

Nonaccrual loans of $177 million were down 4% compared to the third quarter and were also down 4% from the year ago quarter. The ratio of nonaccrual loans to total loans was down from the previous quarter and stands at 1.01%.

Capital

During the fourth quarter, the Company repurchased $100 million of common stock in two separate accelerated share repurchase transactions.

The Company�s capital position remains strong, with a Tier 1 common equity ratio of 9.74% at December�31, 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.

FOURTH 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, January�22, 2015. 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 fourth 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 (NYSE: ASB) has total assets of $27 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.

- more �


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.

# # #


Associated Banc-Corp

Consolidated Balance Sheets�(Unaudited)

��

(in thousands)

�� December�31,
2014
September�30,
2014
Seql Qtr
$ Change
June 30,
2014
March 31,
2014
December�31,
2013
Comp Qtr
$ Change

Assets

��

Cash and due from banks

�� $ 444,113 $ 381,287 $ 62,826 $ 549,883 $ 526,951 $ 455,482 $ (11,369 )�

Interest-bearing deposits in other financial institutions

�� 571,924 74,945 496,979 78,233 92,071 126,018 445,906

Federal funds sold and securities purchased under agreements to resell

�� 16,030 18,320 (2,290 )� 18,135 4,400 20,745 (4,715 )�

Securities held to maturity, at amortized cost

�� 404,455 301,941 102,514 246,050 193,759 175,210 229,245

Securities available for sale, at fair value

�� 5,396,812 5,345,422 51,390 5,506,379 5,277,908 5,250,585 146,227

Federal Home Loan Bank and Federal

��

Reserve Bank stocks, at cost

�� 189,107 188,875 232 186,247 181,360 181,249 7,858

Loans held for sale

�� 154,935 141,672 13,263 78,657 46,529 64,738 90,197

Loans

�� 17,593,846 17,159,090 434,756 17,045,052 16,441,444 15,896,261 1,697,585

Allowance for loan losses

�� (266,302 )� (266,262 )� (40 )� (271,851 )� (267,916 )� (268,315 )� 2,013
��

Loans, net

�� 17,327,544 16,892,828 434,716 16,773,201 16,173,528 15,627,946 1,699,598

Premises and equipment, net

�� 274,688 272,283 2,405 264,735 269,257 270,890 3,798

Goodwill

�� 929,168 929,168 ��� 929,168 929,168 929,168 ���

Other intangible assets, net

�� 67,582 69,201 (1,619 )� 70,538 72,629 74,464 (6,882 )�

Trading assets

�� 35,163 34,005 1,158 40,630 40,822 43,728 (8,565 )�

Other assets

�� 1,010,253 1,003,875 6,378 985,930 997,815 1,006,697 3,556
��

Total assets

�� $ 26,821,774 $ 25,653,822 $ 1,167,952 $ 25,727,786 $ 24,806,197 $ 24,226,920 $ 2,594,854
��

Liabilities and Stockholders� Equity

��

Noninterest-bearing demand deposits

�� $ 4,505,272 $ 4,302,454 $ 202,818 $ 4,211,057 $ 4,478,981 $ 4,626,312 $ (121,040 )�

Interest-bearing deposits

�� 14,258,232 13,898,804 359,428 13,105,202 13,030,946 12,640,855 1,617,377
��

Total deposits

�� 18,763,504 18,201,258 562,246 17,316,259 17,509,927 17,267,167 1,496,337

Federal funds purchased and securities sold under agreements to repurchase

�� 493,991 765,641 (271,650 )� 959,051 939,254 475,442 18,549

Other short-term funding

�� 574,297 664,539 (90,242 )� 1,378,120 308,652 265,484 308,813

Long-term funding

�� 3,930,117 2,931,547 998,570 2,931,809 2,932,040 3,087,267 842,850

Trading liabilities

�� 37,329 36,003 1,326 43,311 43,450 46,470 (9,141 )�

Accrued expenses and other liabilities

�� 222,285 185,256 37,029 169,290 171,850 193,800 28,485
��

Total liabilities

�� 24,021,523 22,784,244 1,237,279 22,797,840 21,905,173 21,335,630 2,685,893

Stockholders� Equity

��

Preferred equity

�� 59,727 61,024 (1,297 )� 61,024 61,158 61,862 (2,135 )�

Common stock

�� 1,665 1,719 (54 )� 1,750 1,750 1,750 (85 )�

Surplus

�� 1,484,933 1,583,032 (98,099 )� 1,628,356 1,623,323 1,617,990 (133,057 )�

Retained earnings

�� 1,497,818 1,466,525 31,293 1,432,518 1,402,549 1,392,508 105,310

Accumulated other comprehensive income (loss)

�� (4,850 )� (1,725 )� (3,125 )� 10,494 (11,577 )� (24,244 )� 19,394

Treasury stock

�� (239,042 )� (240,997 )� 1,955 (204,196 )� (176,179 )� (158,576 )� (80,466 )�
��

Total stockholders� equity

�� 2,800,251 2,869,578 (69,327 )� 2,929,946 2,901,024 2,891,290 (91,039 )�
��

Total liabilities and stockholders� equity

�� $ 26,821,774 $ 25,653,822 $ 1,167,952 $ 25,727,786 $ 24,806,197 $ 24,226,920 $ 2,594,854
��

Page 1


Associated Banc-Corp

Consolidated Statements of Income (Unaudited)

�� For�The�Three�Months�Ended
December 31,

Quarter

For The Year Ended
December 31,
��

Year-to-Date

(in thousands, except per share amounts)

�� 2014 �� 2013 $�Change %
Change
2014 �� 2013 �� $�Change %
Change

Interest Income

�� �� �� ��

Interest and fees on loans

�� $ 156,536 �� $ 148,884 $ 7,652 5.1 % $ 598,582 �� $ 587,526 �� $ 11,056 1.9 %

Interest and dividends on investment securities:

�� �� �� ��

Taxable

�� 25,061 �� 24,316 745 3.1 % 102,464 �� 88,919 �� 13,545 15.2 %

Tax-exempt

�� 7,580 �� 6,884 696 10.1 % 29,064 �� 27,345 �� 1,719 6.3 %

Other interest

�� 1,821 �� 1,453 368 25.3 % 6,635 �� 5,193 �� 1,442 27.8 %
��

��

��

��

Total interest income

�� 190,998 �� 181,537 9,461 5.2 % 736,745 �� 708,983 �� 27,762 3.9 %

Interest Expense

�� �� �� ��

Interest on deposits

�� 7,319 �� 7,340 (21 )� (0.3 %)� 26,294 �� 31,267 �� (4,973 )� (15.9 %)�

Interest on Federal funds purchased and securities sold under agreements to repurchase

�� 218 �� 271 (53 )� (19.6 %)� 1,219 �� 1,322 �� (103 )� (7.8 %)�

Interest on other short-term funding

�� 156 �� 228 (72 )� (31.6 %)� 785 �� 1,519 �� (734 )� (48.3 %)�

Interest on long-term funding

�� 8,644 �� 6,499 2,145 33.0 % 27,480 �� 29,332 �� (1,852 )� (6.3 %)�
��

��

��

��

Total interest expense

�� 16,337 �� 14,338 1,999 13.9 % 55,778 �� 63,440 �� (7,662 )� (12.1 %)�
��

��

��

��

Net Interest Income

�� 174,661 �� 167,199 7,462 4.5 % 680,967 �� 645,543 �� 35,424 5.5 %

Provision for credit losses

�� 5,000 �� 2,300 2,700 117.4 % 16,000 �� 10,100 �� 5,900 58.4 %
��

��

��

��

Net interest income after provision for credit losses

�� 169,661 �� 164,899 4,762 2.9 % 664,967 �� 635,443 �� 29,524 4.6 %

Noninterest Income

�� �� �� ��

Trust service fees

�� 12,457 �� 11,938 519 4.3 % 48,403 �� 45,633 �� 2,770 6.1 %

Service charges on deposit accounts

�� 17,006 �� 17,330 (324 )� (1.9 %)� 68,779 �� 70,009 �� (1,230 )� (1.8 %)�

Card-based and other nondeposit fees

�� 12,019 �� 12,684 (665 )� (5.2 %)� 49,512 �� 49,913 �� (401 )� (0.8 %)�

Insurance commissions

�� 10,593 �� 11,274 (681 )� (6.0 %)� 44,421 �� 44,024 �� 397 0.9 %

Brokerage and annuity commissions

�� 3,496 �� 3,881 (385 )� (9.9 %)� 16,089 �� 14,877 �� 1,212 8.1 %
��

��

��

��

Total core fee-based revenue

�� 55,571 �� 57,107 (1,536 )� (2.7 %)� 227,204 �� 224,456 �� 2,748 1.2 %

Mortgage banking, net

�� 2,928 �� 8,277 (5,349 )� (64.6 %)� 21,320 �� 48,847 �� (27,527 )� (56.4 %)�

Capital market fees, net

�� 2,613 �� 2,771 (158 )� (5.7 %)� 9,973 �� 13,080 �� (3,107 )� (23.8 %)�

Bank owned life insurance income

�� 2,739 �� 2,787 (48 )� (1.7 %)� 13,576 �� 11,855 �� 1,721 14.5 %

Asset gains, net

�� 3,727 �� 2,687 1,040 38.7 % 10,288 �� 5,413 �� 4,875 90.1 %

Investment securities gains (losses), net

�� 25 �� (18 )� 43 N/M �� 494 �� 564 �� (70 )� (12.4 %)�

Other

�� 2,040 �� 2,262 (222 )� (9.8 %)� 7,464 �� 8,884 �� (1,420 )� (16.0 %)�
��

��

��

��

Total noninterest income

�� 69,643 �� 75,873 (6,230 )� (8.2 %)� 290,319 �� 313,099 �� (22,780 )� (7.3 %)�

Noninterest Expense

�� �� �� ��

Personnel expense

�� 97,258 �� 101,215 (3,957 )� (3.9 %)� 390,399 �� 397,015 �� (6,616 )� (1.7 %)�

Occupancy

�� 14,589 �� 14,684 (95 )� (0.6 %)� 57,677 �� 59,409 �� (1,732 )� (2.9 %)�

Equipment

�� 6,148 �� 6,509 (361 )� (5.5 %)� 24,784 �� 25,351 �� (567 )� (2.2 %)�

Technology

�� 14,581 �� 12,963 1,618 12.5 % 55,472 �� 49,445 �� 6,027 12.2 %

Business development and advertising

�� 8,538 �� 7,834 704 9.0 % 26,144 �� 23,346 �� 2,798 12.0 %

Other intangible amortization

�� 775 �� 1,011 (236 )� (23.3 %)� 3,747 �� 4,043 �� (296 )� (7.3 %)�

Loan expense

�� 3,646 �� 3,677 (31 )� (0.8 %)� 13,866 �� 13,162 �� 704 5.3 %

Legal and professional fees

�� 4,257 �� 5,916 (1,659 )� (28.0 %)� 17,485 �� 20,226 �� (2,741 )� (13.6 %)�

Foreclosure / OREO expense

�� 1,168 �� 2,829 (1,661 )� (58.7 %)� 6,722 �� 10,068 �� (3,346 )� (33.2 %)�

FDIC expense

�� 6,956 �� 4,879 2,077 42.6 % 23,761 �� 19,461 �� 4,300 22.1 %

Other

�� 13,889 �� 17,650 (3,761 )� (21.3 %)� 59,184 �� 59,123 �� 61 0.1 %
��

��

��

��

Total noninterest expense

�� 171,805 �� 179,167 (7,362 )� (4.1 %)� 679,241 �� 680,649 �� (1,408 )� (0.2 %)�
��

��

��

��

Income before income taxes

�� 67,499 �� 61,605 5,894 9.6 % 276,045 �� 267,893 �� 8,152 3.0 %

Income tax expense

�� 18,761 �� 13,847 4,914 35.5 % 85,536 �� 79,201 �� 6,335 8.0 %
��

��

��

��

Net income

�� 48,738 �� 47,758 980 2.1 % 190,509 �� 188,692 �� 1,817 1.0 %

Preferred stock dividends

�� 1,225 �� 1,273 (48 )� (3.8 %)� 5,002 �� 5,158 �� (156 )� (3.0 %)�
��

��

��

��

Net income available to common equity

�� $ 47,513 �� $ 46,485 $ 1,028 2.2 % $ 185,507 �� $ 183,534 �� $ 1,973 1.1 %
��

��

��

��

Earnings Per Common Share:

�� �� �� ��

Basic

�� $ 0.31 �� $ 0.28 $ 0.03 10.7 % $ 1.17 �� $ 1.10 �� $ 0.07 6.4 %

Diluted

�� $ 0.31 �� $ 0.28 $ 0.03 10.7 % $ 1.16 �� $ 1.10 �� $ 0.06 5.5 %

Average Common Shares Outstanding:

�� �� �� ��

Basic

�� 151,931 �� 162,611 (10,680 )� (6.6 %)� 157,286 �� 165,584 �� (8,298 )� (5.0 %)�

Diluted

�� 153,083 �� 163,235 (10,152 )� (6.2 %)� 158,254 �� 165,802 �� (7,548 )� (4.6 %)�

N/M = Not meaningful

�� �� �� ��

Page 2


Associated Banc-Corp

Consolidated�Statements�of�Income�(Unaudited)�Quarterly�Trend

�� �� �� Sequential Qtr �� �� Comparable Qtr

(in thousands, except per share amounts)

�� 4Q14 �� 3Q14 �� $�Change %
Change
2Q14 �� 1Q14 �� 4Q13 $�Change %
Change

Interest Income

�� �� �� �� ��

Interest and fees on loans

�� $ 156,536 �� $ 152,030 �� $ 4,506 3.0 % $ 146,629 �� $ 143,387 �� $ 148,884 $ 7,652 5.1 %

Interest and dividends on investment securities:

�� �� �� �� ��

Taxable

�� 25,061 �� 25,037 �� 24 0.1 % 26,109 �� 26,257 �� 24,316 745 3.1 %

Tax-exempt

�� 7,580 �� 7,483 �� 97 1.3 % 7,030 �� 6,971 �� 6,884 696 10.1 %

Other interest

�� 1,821 �� 1,503 �� 318 21.2 % 1,862 �� 1,449 �� 1,453 368 25.3 %
��

��

��

��

��

Total interest income

�� 190,998 �� 186,053 �� 4,945 2.7 % 181,630 �� 178,064 �� 181,537 9,461 5.2 %

Interest Expense

�� �� �� �� ��

Interest on deposits

�� 7,319 �� 6,621 �� 698 10.5 % 6,195 �� 6,159 �� 7,340 (21 )� (0.3 %)�

Interest on Federal funds purchased and securities sold under agreements to repurchase

�� 218 �� 390 �� (172 )� (44.1 %)� 306 �� 305 �� 271 (53 )� (19.6 %)�

Interest on other short-term funding

�� 156 �� 233 �� (77 )� (33.0 %)� 280 �� 116 �� 228 (72 )� (31.6 %)�

Interest on long-term funding

�� 8,644 �� 6,179 �� 2,465 39.9 % 6,146 �� 6,511 �� 6,499 2,145 33.0 %
��

��

��

��

��

Total interest expense

�� 16,337 �� 13,423 �� 2,914 21.7 % 12,927 �� 13,091 �� 14,338 1,999 13.9 %
��

��

��

��

��

Net Interest Income

�� 174,661 �� 172,630 �� 2,031 1.2 % 168,703 �� 164,973 �� 167,199 7,462 4.5 %

Provision for credit losses

�� 5,000 �� 1,000 �� 4,000 N/M �� 5,000 �� 5,000 �� 2,300 2,700 117.4 %
��

��

��

��

��

Net interest income after provision for credit losses

�� 169,661 �� 171,630 �� (1,969 )� (1.1 %)� 163,703 �� 159,973 �� 164,899 4,762 2.9 %

Noninterest Income

�� �� �� �� ��

Trust service fees

�� 12,457 �� 12,218 �� 239 2.0 % 12,017 �� 11,711 �� 11,938 519 4.3 %

Service charges on deposit accounts

�� 17,006 �� 17,961 �� (955 )� (5.3 %)� 17,412 �� 16,400 �� 17,330 (324 )� (1.9 %)�

Card-based and other nondeposit fees

�� 12,019 �� 12,407 �� (388 )� (3.1 %)� 12,577 �� 12,509 �� 12,684 (665 )� (5.2 %)�

Insurance commissions

�� 10,593 �� 7,860 �� 2,733 34.8 % 13,651 �� 12,317 �� 11,274 (681 )� (6.0 %)�

Brokerage and annuity commissions

�� 3,496 �� 4,040 �� (544 )� (13.5 %)� 4,520 �� 4,033 �� 3,881 (385 )� (9.9 %)�
��

��

��

��

��

Total core fee-based revenue

�� 55,571 �� 54,486 �� 1,085 2.0 % 60,177 �� 56,970 �� 57,107 (1,536 )� (2.7 %)�

Mortgage banking, net

�� 2,928 �� 6,669 �� (3,741 )� (56.1 %)� 5,362 �� 6,361 �� 8,277 (5,349 )� (64.6 %)�

Capital market fees, net

�� 2,613 �� 2,939 �� (326 )� (11.1 %)� 2,099 �� 2,322 �� 2,771 (158 )� (5.7 %)�

Bank owned life insurance income

�� 2,739 �� 3,506 �� (767 )� (21.9 %)� 3,011 �� 4,320 �� 2,787 (48 )� (1.7 %)�

Asset gains, net

�� 3,727 �� 4,934 �� (1,207 )� (24.5 %)� 899 �� 728 �� 2,687 1,040 38.7 %

Investment securities gains (losses), net

�� 25 �� 57 �� (32 )� (56.1 %)� 34 �� 378 �� (18 )� 43 N/M ��

Other

�� 2,040 �� 2,317 �� (277 )� (12.0 %)� 665 �� 2,442 �� 2,262 (222 )� (9.8 %)�
��

��

��

��

��

Total noninterest income

�� 69,643 �� 74,908 �� (5,265 )� (7.0 %)� 72,247 �� 73,521 �� 75,873 (6,230 )� (8.2 %)�

Noninterest Expense

�� �� �� �� ��

Personnel expense

�� 97,258 �� 97,650 �� (392 )� (0.4 %)� 97,793 �� 97,698 �� 101,215 (3,957 )� (3.9 %)�

Occupancy

�� 14,589 �� 13,743 �� 846 6.2 % 13,785 �� 15,560 �� 14,684 (95 )� (0.6 %)�

Equipment

�� 6,148 �� 6,133 �� 15 0.2 % 6,227 �� 6,276 �� 6,509 (361 )� (5.5 %)�

Technology

�� 14,581 �� 13,573 �� 1,008 7.4 % 14,594 �� 12,724 �� 12,963 1,618 12.5 %

Business development and advertising

�� 8,538 �� 7,467 �� 1,071 14.3 % 5,077 �� 5,062 �� 7,834 704 9.0 %

Other intangible amortization

�� 775 �� 990 �� (215 )� (21.7 %)� 991 �� 991 �� 1,011 (236 )� (23.3 %)�

Loan expense

�� 3,646 �� 3,813 �� (167 )� (4.4 %)� 3,620 �� 2,787 �� 3,677 (31 )� (0.8 %)�

Legal and professional fees

�� 4,257 �� 4,604 �� (347 )� (7.5 %)� 4,436 �� 4,188 �� 5,916 (1,659 )� (28.0 %)�

Foreclosure / OREO expense

�� 1,168 �� 2,083 �� (915 )� (43.9 %)� 1,575 �� 1,896 �� 2,829 (1,661 )� (58.7 %)�

FDIC expense

�� 6,956 �� 6,859 �� 97 1.4 % 4,945 �� 5,001 �� 4,879 2,077 42.6 %

Other

�� 13,889 �� 14,938 �� (1,049 )� (7.0 %)� 14,882 �� 15,475 �� 17,650 (3,761 )� (21.3 %)�
��

��

��

��

��

Total noninterest expense

�� 171,805 �� 171,853 �� (48 )� (0.0 %)� 167,925 �� 167,658 �� 179,167 (7,362 )� (4.1 %)�
��

��

��

��

��

Income before income taxes

�� 67,499 �� 74,685 �� (7,186 )� (9.6 %)� 68,025 �� 65,836 �� 61,605 5,894 9.6 %

Income tax expense

�� 18,761 �� 24,478 �� (5,717 )� (23.4 %)� 21,660 �� 20,637 �� 13,847 4,914 35.5 %
��

��

��

��

��

Net income

�� 48,738 �� 50,207 �� (1,469 )� (2.9 %)� 46,365 �� 45,199 �� 47,758 980 2.1 %

Preferred stock dividends

�� 1,225 �� 1,255 �� (30 )� (2.4 %)� 1,278 �� 1,244 �� 1,273 (48 )� (3.8 %)�
��

��

��

��

��

Net income available to common equity

�� $ 47,513 �� $ 48,952 �� $ (1,439 )� (2.9 %)� $ 45,087 �� $ 43,955 �� $ 46,485 $ 1,028 2.2 %
��

��

��

��

��

Earnings Per Common Share:

�� �� �� �� ��

Basic

�� $ 0.31 �� $ 0.31 �� $ ��� 0.0 %� $ 0.28 �� $ 0.27 �� $ 0.28 $ 0.03 10.7 %

Diluted

�� $ 0.31 �� $ 0.31 �� $ ��� 0.0 %� $ 0.28 �� $ 0.27 �� $ 0.28 $ 0.03 10.7 %

Average Common Shares Outstanding:

�� �� �� �� ��

Basic

�� 151,931 �� 155,925 �� (3,994 )� (2.6 %)� 159,940 �� 161,467 �� 162,611 (10,680 )� (6.6 %)�

Diluted

�� 153,083 �� 156,991 �� (3,908 )� (2.5 %)� 160,838 �� 162,188 �� 163,235 (10,152 )� (6.2 %)�

N/M = Not meaningful.

�� �� �� �� ��

Page 3


Associated Banc-Corp

Selected Quarterly Information

($ in millions, except per share and full time

equivalent employee data)

�� YTD�2014 YTD�2013 4Q14 3Q14 2Q14 1Q14 4Q13

Per Common Share Data

��

Dividends

�� $ 0.37 $ 0.33 $ 0.10 $ 0.09 $ 0.09 $ 0.09 $ 0.09

Market Value:

��

High

�� 19.37 17.60 19.37 18.90 18.39 18.35 17.56

Low

�� 15.58 13.46 16.75 17.42 16.82 15.58 15.34

Close

�� 18.63 17.40 18.63 17.42 18.08 18.06 17.40

Book value

�� 18.32 17.40 18.32 18.15 17.99 17.64 17.40

Tier 1 common equity / share

�� 12.09 11.77 12.09 12.10 12.04 11.88 11.77

Tangible book value / share

�� $ 12.06 $ 11.62 $ 12.06 $ 12.09 $ 12.11 $ 11.80 $ 11.62
��

Performance Ratios (annualized)

��

Return on average assets

�� 0.76 %� 0.81 %� 0.75 %� 0.78 %� 0.75 %� 0.76 %� 0.80 %�

Return on average tangible common equity

�� 9.91 9.73 10.27 10.35 9.56 9.45 9.87

Return on average Tier 1 common equity (1)

�� 9.92 9.77 10.35 10.38 9.56 9.38 9.78

Effective tax rate

�� 30.99 29.56 27.79 32.77 31.84 31.35 22.48

Dividend payout ratio (3)

�� 31.62 30.00 32.26 29.03 32.14 33.33 32.14
��

Average Balances

��

Common stockholders� equity

�� $ 2,811 $ 2,829 $ 2,772 $ 2,815 $ 2,830 $ 2,827 $ 2,810

Average Tier 1 common equity (1)

�� $ 1,871 $ 1,878 $ 1,821 $ 1,871 $ 1,892 $ 1,900 $ 1,885
��

Selected Trend Information

��

Average full time equivalent employees

�� 4,406 4,728 4,320 4,359 4,431 4,517 4,584

Trust assets under management, at market value

�� $ 7,993 $ 7,424 $ 7,993 $ 7,700 $ 7,720 $ 7,535 $ 7,424

Total revenue (4)

�� $ 991 $ 979 $ 249 $ 252 $ 246 $ 243 $ 248

Core fee-based revenue (5)

�� $ 227 $ 224 $ 56 $ 54 $ 60 $ 57 $ 57

Mortgage loans originated for sale during period

�� $ 1,070 $ 2,304 $ 292 $ 298 $ 276 $ 204 $ 327

Mortgage portfolio serviced for others

�� $ 7,999 $ 8,084 $ 7,999 $ 8,012 $ 8,052 $ 8,084 $ 8,084

Mortgage servicing rights, net / Portfolio serviced for others

�� 0.75 %� 0.78 %� 0.75 %� 0.76 %� 0.76 %� 0.77 %� 0.78 %�
��

At Period End

��

Loans / deposits

�� 93.77 %� 94.27 %� 98.43 %� 93.90 %� 92.06 %�

Risk weighted assets (6)�(7)

�� $ 18,568 $ 18,031 $ 17,911 $ 17,075 $ 16,694

Tier 1 common equity (1)

�� $ 1,808 $ 1,873 $ 1,920 $ 1,912 $ 1,913

Stockholders� equity / assets

�� 10.44 %� 11.19 %� 11.39 %� 11.69 %� 11.93 %�

Tangible common equity / tangible assets (8)

�� 6.97 %� 7.57 %� 7.79 %� 7.96 %� 8.11 %�

Tangible equity / tangible assets (8)

�� 7.20 %� 7.82 %� 8.03 %� 8.22 %� 8.38 %�

Tier 1 common equity / risk-weighted assets (6)�(7)

�� 9.74 %� 10.39 %� 10.72 %� 11.20 %� 11.46 %�

Tier 1 leverage ratio (6)�(7)

�� 7.48 %� 7.87 %� 8.26 %� 8.46 %� 8.70 %�

Tier 1 risk-based capital ratio (6)�(7)

�� 10.06 %� 10.73 %� 11.06 %� 11.56 %� 11.83 %�

Total risk-based capital ratio (6)�(7)

�� 12.66 %� 11.98 %� 12.31 %� 12.81 %� 13.09 %�

Shares outstanding, end of period

�� 149,560 154,743 159,480 161,012 162,623
��

Non-GAAP Financial Measures Reconciliation

��

Efficiency ratio (2)

�� 69.97 %� 71.04 %� 70.33 %� 69.44 %� 69.70 %� 70.41 %� 73.70 %�

Taxable equivalent adjustment

�� (1.36 )� (1.45 )� (1.40 )� (1.36 )� (1.32 )� (1.35 )� (1.49 )�

Asset gains, net

�� 0.73 0.39 1.05 1.36 0.26 0.22 0.80

Other intangible amortization

�� (0.39 )� (0.42 )� (0.32 )� (0.40 )� (0.41 )� (0.42 )� (0.42 )�

Efficiency ratio, fully taxable equivalent (2)

�� 68.95 %� 69.56 %� 69.66 %� 69.04 %� 68.23 %� 68.86 %� 72.59 %�

(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) December�31, 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 4


Associated Banc-Corp

Selected Asset Quality Information

��

(in thousands)

�� Dec 31, 2014 Sep 30, 2014 Dec14�vs
Sep14
%�Change
Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Dec14�vs
Dec13
%�Change

Allowance for Loan Losses

��

Beginning balance

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

Provision for loan losses

�� 4,500 (3,000 )� N/M �� 6,500 5,000 2,000 125.0 %

Charge offs

�� (8,778 )� (14,850 )� (40.9 %)� (9,107 )� (11,361 )� (18,742 )� (53.2 %)�

Recoveries

�� 4,318 12,261 (64.8 %)� 6,542 5,962 13,333 (67.6 %)�
��

Net charge offs

�� (4,460 )� (2,589 )� 72.3 % (2,565 )� (5,399 )� (5,409 )� (17.5 %)�
��

Ending balance

�� $ 266,302 $ 266,262 0.0 % $ 271,851 $ 267,916 $ 268,315 (0.8 %)�
��

Allowance for Unfunded Commitments

��

Beginning balance

�� $ 24,400 $ 20,400 19.6 % $ 21,900 $ 21,900 $ 21,600 13.0 %

Provision for unfunded commitments

�� 500 4,000 (87.5 %)� (1,500 )� ��� 300 66.7 %
��

Ending balance

�� $ 24,900 $ 24,400 2.0 % $ 20,400 $ 21,900 $ 21,900 13.7 %
��

Allowance for credit losses

�� $ 291,202 $ 290,662 0.2 % $ 292,251 $ 289,816 $ 290,215 0.3 %
��

Net Charge Offs �� Dec 31, 2014 Sep 30, 2014 Dec14 vs
Sep14
%�Change
Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Dec14 vs
Dec13
%�Change

Commercial and industrial

�� $ 1,323 $ 572 131.3 % $ (1,377 )� $ 2,725 $ 4,555 (71.0 %)�

Commercial real estate�owner occupied

�� 134 2,210 (93.9 %)� (550 )� (124 )� 967 (86.1 %)�

Lease financing

�� 9 (6 )� N/M �� 29 ��� (16 )� N/M ��
��

Commercial and business lending

�� 1,466 2,776 (47.2 %)� (1,898 )� 2,601 5,506 (73.4 %)�

Commercial real estate�investor

�� (132 )� (4,065 )� (96.8 %)� (239 )� (1,031 )� 137 N/M ��

Real estate construction

�� (116 )� 350 (133.1 %)� 795 113 (3,130 )� (96.3 %)�
��

Commercial real estate lending

�� (248 )� (3,715 )� (93.3 %)� 556 (918 )� (2,993 )� (91.7 %)�
��

Total commercial

�� 1,218 (939 )� N/M �� (1,342 )� 1,683 2,513 (51.5 %)�

Home equity revolving lines of credit

�� 1,094 1,098 (0.4 %)� 1,380 1,182 966 13.3 %

Home equity loans 1st liens

�� 206 118 74.6 % 448 406 372 (44.6 %)�

Home equity loans junior liens

�� 457 728 (37.2 %)� 948 859 1,111 (58.9 %)�
��

Home equity

�� 1,757 1,944 (9.6 %)� 2,776 2,447 2,449 (28.3 %)�

Installment and credit cards

�� 990 910 8.8 % 247 113 (611 )� N/M ��

Residential mortgage

�� 495 674 (26.6 %)� 884 1,156 1,058 (53.2 %)�
��

Total consumer

�� 3,242 3,528 (8.1 %)� 3,907 3,716 2,896 11.9 %
��

Total net charge offs

�� $ 4,460 $ 2,589 72.3 % $ 2,565 $ 5,399 $ 5,409 (17.5 %)�
��

Net Charge Offs to Average Loans (in basis points) * �� Dec�31,�2014 Sep�30,�2014 Jun�30,�2014 Mar�31,�2014 Dec�31,�2013

Commercial and industrial

�� 9 4 (10 )� 22 38

Commercial real estate�owner occupied

�� 5 84 (20 )� (5 )� 34

Lease financing

�� 7 (5 )� 22 ��� (12 )�
��

Commercial and business lending

�� 9 17 (12 )� 17 37

Commercial real estate�investor

�� (2 )� (54 )� (3 )� (14 )� 2

Real estate construction

�� (5 )� 14 33 5 (145 )�
��

Commercial real estate lending

�� (2 )� (37 )� 6 (10 )� (32 )�
��

Total commercial

�� 4 (3 )� (5 )� 7 10

Home equity revolving lines of credit

�� 49 50 64 55 44

Home equity loans 1st liens

�� 14 7 26 23 19

Home equity loans junior liens

�� 107 159 196 171 205
��

Home equity

�� 42 45 64 55 52

Installment and credit cards

�� 86 78 25 11 (59 )�

Residential mortgage

�� 4 6 9 12 11
��

Total consumer

�� 19 22 25 25 19
��

Total net charge offs

�� 10 6 6 14 14
��

Credit Quality �� Dec 31, 2014 Sep 30, 2014 Dec14 vs
Sep14
%�Change
Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Dec14 vs
Dec13
%�Change

Nonaccrual loans

�� $ 177,413 $ 184,138 (3.7 %)� $ 179,226 $ 177,978 $ 185,428 (4.3 %)�

Other real estate owned (OREO)

�� 16,732 16,840 (0.6 %)� 17,729 19,173 18,118 (7.6 %)�
��

Total nonperforming assets

�� $ 194,145 $ 200,978 (3.4 %)� $ 196,955 $ 197,151 $ 203,546 (4.6 %)�
��

Loans 90 or more days past due and still accruing

�� $ 1,623 $ 1,690 (4.0 %)� $ 1,776 $ 723 $ 2,350 (30.9 %)�

Allowance for loan losses / loans

�� 1.51 %� 1.55 %� 1.59 %� 1.63 %� 1.69 %�

Allowance for loan losses / nonaccrual loans

�� 150.10 144.60 151.68 150.53 144.70

Nonaccrual loans / total loans

�� 1.01 1.07 1.05 1.08 1.17

Nonperforming assets / total loans plus OREO

�� 1.10 1.17 1.15 1.20 1.28

Nonperforming assets / total assets

�� 0.72 0.78 0.77 0.79 0.84

Net charge offs / average loans (annualized)

�� 0.10 0.06 0.06 0.14 0.14

Year-to-date net charge offs / average loans

�� 0.09 0.08 0.10 0.14 0.25

Nonaccrual loans by type:

��

Commercial and industrial

�� $ 49,663 $ 51,143 (2.9 %)� $ 40,846 $ 38,488 $ 37,719 31.7 %

Commercial real estate�owner occupied

�� 25,825 24,340 6.1 % 31,725 26,735 29,664 (12.9 %)�

Lease financing

�� 1,801 1,947 (7.5 %)� 1,541 172 69 N/M ��
��

Commercial and business lending

�� 77,289 77,430 (0.2 %)� 74,112 65,395 67,452 14.6 %

Commercial real estate�investor

�� 22,685 25,106 (9.6 %)� 28,135 33,611 37,596 (39.7 %)�

Real estate construction

�� 5,399 8,187 (34.1 %)� 6,988 6,667 6,467 (16.5 %)�
��

Commercial real estate lending

�� 28,084 33,293 (15.6 %)� 35,123 40,278 44,063 (36.3 %)�
��

Total commercial

�� 105,373 110,723 (4.8 %)� 109,235 105,673 111,515 (5.5 %)�

Home equity revolving lines of credit

�� 9,853 10,154 (3.0 %)� 10,056 10,356 11,883 (17.1 %)�

Home equity loans 1st liens

�� 5,290 4,664 13.4 % 4,634 5,341 6,135 (13.8 %)�

Home equity loans junior liens

�� 6,598 6,443 2.4 % 6,183 6,788 7,149 (7.7 %)�
��

Home equity

�� 21,741 21,261 2.3 % 20,873 22,485 25,167 (13.6 %)�

Installment and credit cards

�� 613 653 (6.1 %)� 771 915 1,114 (45.0 %)�

Residential mortgage

�� 49,686 51,501 (3.5 %)� 48,347 48,905 47,632 4.3 %
��

Total consumer

�� 72,040 73,415 (1.9 %)� 69,991 72,305 73,913 (2.5 %)�
��

Total nonaccrual loans

�� $ 177,413 $ 184,138 (3.7 %)� $ 179,226 $ 177,978 $ 185,428 (4.3 %)�
��

* Annualized.

N/M = Not meaningful.

Page 5


Associated Banc-Corp

Selected Asset Quality Information (continued)

(in thousands)

�� Dec�31,�2014 �� Sep�30,�2014 �� Dec14 vs
Sep14

%�Change
Jun�30,�2014 �� Mar�31,�2014 �� Dec�31,�2013 �� Dec14 vs
Dec13

%�Change

Restructured loans (accruing)

�� �� �� �� �� ��

Commercial and industrial

�� $ 33,892 �� $ 36,955 �� (8.3 %)� $ 28,849 �� $ 27,776 �� $ 32,517 �� 4.2 %

Commercial real estate�owner occupied

�� 10,454 �� 11,574 �� (9.7 %)� 12,168 �� 11,579 �� 13,009 �� (19.6 %)�
��

��

��

��

��

��

Commercial and business lending

�� 44,346 �� 48,529 �� (8.6 %)� 41,017 �� 39,355 �� 45,526 �� (2.6 %)�

Commercial real estate�investor

�� 23,127 �� 24,440 �� (5.4 %)� 41,758 �� 46,020 �� 44,946 �� (48.5 %)�

Real estate construction

�� 727 �� 805 �� (9.7 %)� 1,224 �� 2,954 �� 3,793 �� (80.8 %)�
��

��

��

��

��

��

Commercial real estate lending

�� 23,854 �� 25,245 �� (5.5 %)� 42,982 �� 48,974 �� 48,739 �� (51.1 %)�
��

��

��

��

��

��

Total commercial

�� 68,200 �� 73,774 �� (7.6 %)� 83,999 �� 88,329 �� 94,265 �� (27.7 %)�

Home equity revolving lines of credit

�� 1,508 �� 1,531 �� (1.5 %)� 1,527 �� 1,178 �� 1,117 �� 35.0 %

Home equity loans 1st liens

�� 1,857 �� 1,867 �� (0.5 %)� 1,674 �� 1,656 �� 1,436 �� 29.3 %

Home equity loans junior liens

�� 6,701 �� 7,184 �� (6.7 %)� 7,243 �� 6,738 �� 7,080 �� (5.4 %)�
��

��

��

��

��

��

Home equity

�� 10,066 �� 10,582 �� (4.9 %)� 10,444 �� 9,572 �� 9,633 �� 4.5 %

Installment and credit cards

�� 974 �� 1,106 �� (11.9 %)� 1,185 �� 225 �� 246 �� 295.9 %

Residential mortgage

�� 18,976 �� 19,141 �� (0.9 %)� 18,753 �� 18,798 �� 19,841 �� (4.4 %)�
��

��

��

��

��

��

Total consumer

�� 30,016 �� 30,829 �� (2.6 %)� 30,382 �� 28,595 �� 29,720 �� 1.0 %
��

��

��

��

��

��

Total restructured loans (accruing)

�� $ 98,216 �� $ 104,603 �� (6.1 %)� $ 114,381 �� $ 116,924 �� $ 123,985 �� (20.8 %)�
��

��

��

��

��

��

Restructured loans in nonaccrual loans (not included above)

�� $ 57,656 �� $ 63,314 �� (8.9 %)� $ 72,388 �� $ 74,231 �� $ 59,585 �� (3.2 %)�
��

��

��

��

��

��
Loans Past Due 30-89 Days �� Dec 31, 2014 �� Sep 30, 2014 �� Dec14 vs
Sep14
%�Change
Jun 30, 2014 �� Mar 31, 2014 �� Dec 31, 2013 �� Dec14 vs
Dec13
%�Change

Commercial and industrial

�� $ 14,747 �� $ 3,947 �� 273.6 % $ 2,519 �� $ 4,126 �� $ 6,826 �� 116.0 %

Commercial real estate�owner occupied

�� 10,628 �� 2,675 �� 297.3 % 6,323 �� 5,342 �� 3,106 �� 242.2 %

Lease financing

�� ��� �� ��� �� N/M �� 556 �� 567 �� ��� �� N/M ��
��

��

��

��

��

��

Commercial and business lending

�� 25,375 �� 6,622 �� 283.2 % 9,398 �� 10,035 �� 9,932 �� 155.5 %

Commercial real estate�investor

�� 1,208 �� 15,869 �� (92.4 %)� 2,994 �� 7,188 �� 23,215 �� (94.8 %)�

Real estate construction

�� 984 �� 399 �� 146.6 % 258 �� 679 �� 1,954 �� (49.6 %)�
��

��

��

��

��

��

Commercial real estate lending

�� 2,192 �� 16,268 �� (86.5 %)� 3,252 �� 7,867 �� 25,169 �� (91.3 %)�
��

��

��

��

��

��

Total commercial

�� 27,567 �� 22,890 �� 20.4 % 12,650 �� 17,902 �� 35,101 �� (21.5 %)�

Home equity revolving lines of credit

�� 6,725 �� 6,739 �� (0.2 %)� 6,986 �� 5,344 �� 6,728 �� (0.0 %)�

Home equity loans 1st liens

�� 1,800 �� 1,503 �� 19.8 % 1,685 �� 1,469 �� 1,110 �� 62.2 %

Home equity loans junior liens

�� 2,058 �� 2,496 �� (17.5 %)� 2,138 �� 3,006 �� 2,842 �� (27.6 %)�
��

��

��

��

��

��

Home equity

�� 10,583 �� 10,738 �� (1.4 %)� 10,809 �� 9,819 �� 10,680 �� (0.9 %)�

Installment and credit cards

�� 1,932 �� 1,818 �� 6.3 % 1,734 �� 1,269 �� 1,150 �� 68.0 %

Residential mortgage

�� 3,046 �� 3,231 �� (5.7 %)� 7,070 �� 4,498 �� 6,118 �� (50.2 %)�
��

��

��

��

��

��

Total consumer

�� 15,561 �� 15,787 �� (1.4 %)� 19,613 �� 15,586 �� 17,948 �� (13.3 %)�
��

��

��

��

��

��

Total loans past due 30-89 days

�� $ 43,128 �� $ 38,677 �� 11.5 % $ 32,263 �� $ 33,488 �� $ 53,049 �� (18.7 %)�
��

��

��

��

��

��
Potential Problem Loans �� Dec 31, 2014 �� Sep 30, 2014 �� Dec14 vs
Sep14
%�Change
Jun 30, 2014 �� Mar 31, 2014 �� Dec 31, 2013 �� Dec14 vs
Dec13
%�Change

Commercial and industrial

�� $ 108,522 �� $ 133,416 �� (18.7 %)� $ 187,251 �� $ 109,027 �� $ 113,669 �� (4.5 %)�

Commercial real estate�owner occupied

�� 48,695 �� 49,008 �� (0.6 %)� 57,757 �� 64,785 �� 56,789 �� (14.3 %)�

Lease financing

�� 2,709 �� 3,787 �� (28.5 %)� 2,280 �� 3,065 �� 1,784 �� 51.8 %
��

��

��

��

��

��

Commercial and business lending

�� 159,926 �� 186,211 �� (14.1 %)� 247,288 �� 176,877 �� 172,242 �� (7.2 %)�

Commercial real estate�investor

�� 24,043 �� 28,474 �� (15.6 %)� 31,903 �� 34,790 �� 52,429 �� (54.1 %)�

Real estate construction

�� 1,776 �� 2,227 �� (20.3 %)� 4,473 �� 4,870 �� 5,263 �� (66.3 %)�
��

��

��

��

��

��

Commercial real estate lending

�� 25,819 �� 30,701 �� (15.9 %)� 36,376 �� 39,660 �� 57,692 �� (55.2 %)�
��

��

��

��

��

��

Total commercial

�� 185,745 �� 216,912 �� (14.4 %)� 283,664 �� 216,537 �� 229,934 �� (19.2 %)�

Home equity revolving lines of credit

�� 204 �� 224 �� (8.9 %)� 277 �� 310 �� 303 �� (32.7 %)�

Home equity loans junior liens

�� 676 �� 687 �� (1.6 %)� 822 �� 741 �� 1,810 �� (62.7 %)�
��

��

��

��

��

��

Home equity

�� 880 �� 911 �� (3.4 %)� 1,099 �� 1,051 �� 2,113 �� (58.4 %)�

Installment and credit cards

�� 2 �� 4 �� (50.0 %)� 844 �� ��� �� 50 �� (96.0 %)�

Residential mortgage

�� 3,781 �� 2,166 �� 74.6 % 2,445 �� 2,091 �� 3,312 �� 14.2 %
��

��

��

��

��

��

Total consumer

�� 4,663 �� 3,081 �� 51.3 % 4,388 �� 3,142 �� 5,475 �� (14.8 %)�
��

��

��

��

��

��

Total potential problem loans

�� $ 190,408 �� $ 219,993 �� (13.4 %)� $ 288,052 �� $ 219,679 �� $ 235,409 �� (19.1 %)�
��

��

��

��

��

��

N/M = Not meaningful.

Page 6


Associated Banc-Corp

Net Interest Income Analysis�Taxable Equivalent Basis

Sequential Quarter

�� Three�months�ended�December�31,�2014 Three�months�ended�September�30,�2014
(in thousands) �� Average
Balance
�� Interest
Income�/Expense
�� Average
Yield�/Rate
Average
Balance
�� Interest
Income�/Expense
�� Average
Yield�/Rate

Earning assets:

�� �� �� �� ��

Loans: (1)�(2)�(3)

�� �� �� �� ��

Commercial and business lending

�� $ 6,720,893 �� $ 59,197 �� 3.50 %� $ 6,652,227 �� $ 54,990 �� 3.28 %�

Commercial real estate lending

�� 4,066,143 �� 37,122 �� 3.62 4,019,286 �� 37,780 �� 3.73
��

��

��

��

��

Total commercial

�� 10,787,036 �� 96,319 �� 3.54 10,671,513 �� 92,770 �� 3.45

Residential mortgage

�� 4,490,075 �� 36,228 �� 3.23 4,309,121 �� 35,264 �� 3.27

Retail

�� 2,110,144 �� 24,942 �� 4.71 2,160,327 �� 24,968 �� 4.60
��

��

��

��

��

Total loans

�� 17,387,255 �� 157,489 �� 3.60 17,140,961 �� 153,002 �� 3.55

Investment securities (1)

�� 5,697,598 �� 36,658 �� 2.57 5,619,982 �� 36,486 �� 2.60

Other short-term investments

�� 407,644 �� 1,821 �� 1.78 335,774 �� 1,503 �� 1.79
��

��

��

��

��

Investments and other

�� 6,105,242 �� 38,479 �� 2.52 5,955,756 �� 37,989 �� 2.55
��

��

��

��

��

Total earning assets

�� 23,492,497 �� $ 195,968 �� 3.32 23,096,717 �� $ 190,991 �� 3.29

Other assets, net

�� 2,388,268 �� �� 2,375,335 �� ��
��

�� ��

�� ��

Total assets

�� $ 25,880,765 �� �� $ 25,472,052 �� ��
��

�� ��

�� ��

Interest-bearing liabilities:

�� �� �� �� ��

Savings deposits

�� $ 1,264,195 �� $ 253 �� 0.08 %� $ 1,269,994 �� $ 254 �� 0.08 %�

Interest-bearing demand deposits

�� 3,142,537 �� 1,220 �� 0.15 3,096,712 �� 1,111 �� 0.14

Money market deposits

�� 8,209,091 �� 3,547 �� 0.17 7,721,167 �� 3,153 �� 0.16

Time deposits

�� 1,549,565 �� 2,299 �� 0.59 1,545,851 �� 2,103 �� 0.54
��

��

��

��

��

Total interest-bearing deposits

�� 14,165,388 �� 7,319 �� 0.20 13,633,724 �� 6,621 �� 0.19

Federal funds purchased and securities sold under agreements to repurchase

�� 600,969 �� 218 �� 0.14 927,904 �� 390 �� 0.17

Other short-term funding

�� 464,866 �� 156 �� 0.13 665,647 �� 233 �� 0.14

Long-term funding

�� 3,221,574 �� 8,644 �� 1.07 2,931,714 �� 6,179 �� 0.84
��

��

��

��

��

Total short and long-term funding

�� 4,287,409 �� 9,018 �� 0.84 4,525,265 �� 6,802 �� 0.60
��

��

��

��

��

Total interest-bearing liabilities

�� 18,452,797 �� $ 16,337 �� 0.35 18,158,989 �� $ 13,423 �� 0.29

Noninterest-bearing demand deposits

�� 4,367,031 �� �� 4,239,654 �� ��

Other liabilities

�� 228,600 �� �� 197,330 �� ��

Stockholders� equity

�� 2,832,337 �� �� 2,876,079 �� ��
��

�� ��

�� ��

Total liabilities and stockholders� equity

�� $ 25,880,765 �� �� $ 25,472,052 �� ��
��

��

��

��

��

Net interest income and rate spread

�� �� $ 179,631 �� 2.97 %� �� $ 177,568 �� 3.00 %�
�� ��

�� ��

��

Net interest margin

�� �� �� 3.04 %� �� �� 3.06 %�

Taxable equivalent adjustment

�� �� $ 4,970 �� �� $ 4,938 ��
�� ��

�� ��

��
Net Interest Income Analysis�Taxable Equivalent Basis
Comparable Quarter
�� Three months ended December 31, 2014 Three months ended December 31, 2013
(in thousands) �� Average
Balance
�� Interest
Income�/Expense
�� Average
Yield�/Rate
Average
Balance
�� Interest
Income�/Expense
�� Average
Yield�/Rate

Earning assets:

�� �� �� �� ��

Loans: (1)�(2)�(3)

�� �� �� �� ��

Commercial and business lending

�� $ 6,720,893 �� $ 59,197 �� 3.50 %� $ 5,882,438 �� $ 51,498 �� 3.47 %�

Commercial real estate lending

�� 4,066,143 �� 37,122 �� 3.62 3,736,314 �� 40,241 �� 4.28
��

��

��

��

��

Total commercial

�� 10,787,036 �� 96,319 �� 3.54 9,618,752 �� 91,739 �� 3.79

Residential mortgage

�� 4,490,075 �� 36,228 �� 3.23 3,856,944 �� 32,201 �� 3.34

Retail

�� 2,110,144 �� 24,942 �� 4.71 2,272,588 �� 25,851 �� 4.53
��

��

��

��

��

Total loans

�� 17,387,255 �� 157,489 �� 3.60 15,748,284 �� 149,791 �� 3.78

Investment securities (1)

�� 5,697,598 �� 36,658 �� 2.57 5,188,616 �� 35,331 �� 2.72

Other short-term investments

�� 407,644 �� 1,821 �� 1.78 305,165 �� 1,453 �� 1.90
��

��

��

��

��

Investments and other

�� 6,105,242 �� 38,479 �� 2.52 5,493,781 �� 36,784 �� 2.68
��

��

��

��

��

Total earning assets

�� 23,492,497 �� $ 195,968 �� 3.32 21,242,065 �� $ 186,575 �� 3.50

Other assets, net

�� 2,388,268 �� �� 2,316,660 �� ��
��

�� ��

�� ��

Total assets

�� $ 25,880,765 �� �� $ 23,558,725 �� ��
��

�� ��

�� ��

Interest-bearing liabilities:

�� �� �� �� ��

Savings deposits

�� $ 1,264,195 �� $ 253 �� 0.08 %� $ 1,200,338 �� $ 248 �� 0.08 %�

Interest-bearing demand deposits

�� 3,142,537 �� 1,220 �� 0.15 2,852,090 �� 1,047 �� 0.15

Money market deposits

�� 8,209,091 �� 3,547 �� 0.17 7,748,650 �� 3,399 �� 0.17

Time deposits

�� 1,549,565 �� 2,299 �� 0.59 1,727,138 �� 2,646 �� 0.61
��

��

��

��

��

Total interest-bearing deposits

�� 14,165,388 �� 7,319 �� 0.20 13,528,216 �� 7,340 �� 0.22

Federal funds purchased and securities sold under agreements to repurchase

�� 600,969 �� 218 �� 0.14 613,943 �� 271 �� 0.18

Other short-term funding

�� 464,866 �� 156 �� 0.13 726,551 �� 228 �� 0.12

Long-term funding

�� 3,221,574 �� 8,644 �� 1.07 1,266,464 �� 6,499 �� 2.05
��

��

��

��

��

Total short and long-term funding

�� 4,287,409 �� 9,018 �� 0.84 2,606,958 �� 6,998 �� 1.07
��

��

��

��

��

Total interest-bearing liabilities

�� 18,452,797 �� $ 16,337 �� 0.35 16,135,174 �� $ 14,338 �� 0.35

Noninterest-bearing demand deposits

�� 4,367,031 �� �� 4,353,315 �� ��

Other liabilities

�� 228,600 �� �� 197,598 �� ��

Stockholders� equity

�� 2,832,337 �� �� 2,872,638 �� ��
��

�� ��

�� ��

Total liabilities and stockholders� equity

�� $ 25,880,765 �� �� $ 23,558,725 �� ��
��

��

��

��

��

Net interest income and rate spread

�� �� $ 179,631 �� 2.97 %� �� $ 172,237 �� 3.15 %�
�� ��

�� ��

��

Net interest margin

�� �� �� 3.04 %� �� �� 3.23 %�

Taxable equivalent adjustment

�� �� $ 4,970 �� �� $ 5,038 ��
�� ��

�� ��

��

(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 7


Associated Banc-Corp

Net Interest Income Analysis�Taxable Equivalent Basis Year
Over Year

�� �� �� �� ��
�� Year ended December�31, 2014 Year ended December�31, 2013
(in thousands) �� Average
Balance
�� Interest
Income�/Expense
�� Average
Yield�/Rate
Average
Balance
�� Interest
Income�/Expense
�� Average
Yield�/Rate

Earning assets:

�� �� �� �� ��

Loans: (1)�(2)�(3)

�� �� �� �� ��

Commercial and business lending

�� $ 6,495,338 �� $ 219,386 �� 3.38 %� $ 5,809,578 �� $ 208,039 �� 3.58 %�

Commercial real estate lending

�� 3,990,675 �� 146,802 �� 3.68 3,705,526 �� 149,539 �� 4.04
��

��

��

��

��

Total commercial

�� 10,486,013 �� 366,188 �� 3.49 9,515,104 �� 357,578 �� 3.76

Residential mortgage

�� 4,202,727 �� 137,731 �� 3.28 3,714,544 �� 123,275 �� 3.32

Retail

�� 2,150,254 �� 98,481 �� 4.58 2,433,497 �� 110,338 �� 4.53
��

��

��

��

��

Total loans

�� 16,838,994 �� 602,400 �� 3.58 15,663,145 �� 591,191 �� 3.77

Investment securities (1)

�� 5,594,232 �� 146,931 �� 2.63 4,995,331 �� 132,671 �� 2.66

Other short-term investments

�� 326,902 �� 6,635 �� 2.03 321,652 �� 5,193 �� 1.61
��

��

��

��

��

Investments and other

�� 5,921,134 �� 153,566 �� 2.59 5,316,983 �� 137,864 �� 2.59
��

��

��

��

��

Total earning assets

�� 22,760,128 �� $ 755,966 �� 3.32 20,980,128 �� $ 729,055 �� 3.47

Other assets, net

�� 2,351,469 �� �� 2,325,630 �� ��
��

�� ��

�� ��

Total assets

�� $ 25,111,597 �� �� $ 23,305,758 �� ��
��

�� ��

�� ��

Interest-bearing liabilities:

�� �� �� �� ��

Savings deposits

�� $ 1,249,452 �� $ 968 �� 0.08 %� $ 1,188,910 �� $ 942 �� 0.08 %�

Interest-bearing demand deposits

�� 2,983,747 �� 4,124 �� 0.14 2,827,778 �� 4,517 �� 0.16

Money market deposits

�� 7,614,042 �� 12,452 �� 0.16 7,322,476 �� 13,702 �� 0.19

Time deposits

�� 1,587,641 �� 8,750 �� 0.55 1,849,718 �� 12,106 �� 0.65
��

��

��

��

��

Total interest-bearing deposits

�� 13,434,882 �� 26,294 �� 0.20 13,188,882 �� 31,267 �� 0.24

Federal funds purchased and securities sold under agreements to repurchase

�� 795,257 �� 1,219 �� 0.15 675,574 �� 1,322 �� 0.20

Other short-term funding

�� 573,460 �� 785 �� 0.14 1,198,264 �� 1,519 �� 0.13

Long-term funding

�� 3,022,787 �� 27,480 �� 0.91 901,927 �� 29,332 �� 3.25
��

��

��

��

��

Total short and long-term funding

�� 4,391,504 �� 29,484 �� 0.67 2,775,765 �� 32,173 �� 1.16
��

��

��

��

��

Total interest-bearing liabilities

�� 17,826,386 �� $ 55,778 �� 0.31 15,964,647 �� $ 63,440 �� 0.40

Noninterest-bearing demand deposits

�� 4,212,202 �� �� 4,249,313 �� ��

Other liabilities

�� 201,077 �� �� 199,486 �� ��

Stockholders� equity

�� 2,871,932 �� �� 2,892,312 �� ��
��

�� ��

�� ��

Total liabilities and stockholders� equity

�� $ 25,111,597 �� �� $ 23,305,758 �� ��
��

��

��

��

��

Net interest income and rate spread

�� �� $ 700,188 �� 3.01 %� �� $ 665,615 �� 3.07 %�
�� ��

�� ��

��

Net interest margin

�� �� �� 3.08 %� �� �� 3.17 %�

Taxable equivalent adjustment

�� �� $ 19,221 �� �� $ 20,072 ��
�� ��

�� ��

��

(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 8


Associated Banc-Corp �� �� �� �� �� ��
Financial�Summary�and�Comparison �� �� �� �� �� ��
Period�End�Loan�Composition �� Dec�31,�2014 �� Sep�30,�2014 �� Dec14�vs�Sep14
% Change
Jun�30,�2014 �� Mar�31,�2014 �� Dec�31,�2013 �� Dec14�vs�Dec13
% Change

Commercial and industrial

�� $ 5,905,902 �� $ 5,603,899 �� 5.4 % $ 5,616,205 �� $ 5,222,141 �� $ 4,822,680 �� 22.5 %

Commercial real estate�owner occupied

�� 1,007,937 �� 1,014,335 �� (0.6 %)� 1,070,463 �� 1,098,089 �� 1,114,715 �� (9.6 %)�

Lease financing

�� 51,529 �� 52,600 �� (2.0 %)� 51,873 �� 52,500 �� 55,483 �� (7.1 %)�
��

��

��

��

��

��

Commercial and business lending

�� 6,965,368 �� 6,670,834 �� 4.4 % 6,738,541 �� 6,372,730 �� 5,992,878 �� 16.2 %

Commercial real estate�investor

�� 3,056,485 �� 3,043,361 �� 0.4 % 2,990,732 �� 3,001,219 �� 2,939,456 �� 4.0 %

Real estate construction

�� 1,008,956 �� 982,426 �� 2.7 % 1,000,421 �� 969,617 �� 896,248 �� 12.6 %
��

��

��

��

��

��

Commercial real estate lending

�� 4,065,441 �� 4,025,787 �� 1.0 % 3,991,153 �� 3,970,836 �� 3,835,704 �� 6.0 %
��

��

��

��

��

��

Total commercial

�� 11,030,809 �� 10,696,621 �� 3.1 % 10,729,694 �� 10,343,566 �� 9,828,582 �� 12.2 %

Home equity revolving lines of credit

�� 887,779 �� 880,435 �� 0.8 % 866,042 �� 856,679 �� 874,840 �� 1.5 %

Home equity loans 1st liens

�� 584,131 �� 619,774 �� (5.8 %)� 659,598 �� 705,835 �� 742,120 �� (21.3 %)�

Home equity loans junior liens

�� 164,148 �� 176,316 �� (6.9 %)� 187,732 �� 199,488 �� 208,054 �� (21.1 %)�
��

��

��

��

��

��

Home equity

�� 1,636,058 �� 1,676,525 �� (2.4 %)� 1,713,372 �� 1,762,002 �� 1,825,014 �� (10.4 %)�

Installment and credit cards

�� 454,219 �� 459,682 �� (1.2 %)� 469,203 �� 393,321 �� 407,074 �� 11.6 %

Residential mortgage

�� 4,472,760 �� 4,326,262 �� 3.4 % 4,132,783 �� 3,942,555 �� 3,835,591 �� 16.6 %
��

��

��

��

��

��

Total consumer

�� 6,563,037 �� 6,462,469 �� 1.6 % 6,315,358 �� 6,097,878 �� 6,067,679 �� 8.2 %
��

��

��

��

��

��

Total loans

�� $ 17,593,846 �� $ 17,159,090 �� 2.5 % $ 17,045,052 �� $ 16,441,444 �� $ 15,896,261 �� 10.7 %
��

��

��

��

��

��
Period End Deposit and Customer Funding
Composition
�� Dec�31,�2014 �� Sep�30,�2014 �� Dec14�vs�Sep14
% Change
Jun�30,�2014 �� Mar�31,�2014 �� Dec�31,�2013 �� Dec14�vs�Dec13
% Change

Noninterest-bearing demand

�� $ 4,505,272 �� $ 4,302,454 �� 4.7 % $ 4,211,057 �� $ 4,478,981 �� $ 4,626,312 �� (2.6 %)�

Savings

�� 1,235,277 �� 1,256,567 �� (1.7 %)� 1,275,493 �� 1,252,669 �� 1,159,512 �� 6.5 %

Interest-bearing demand

�� 3,126,854 �� 3,637,411 �� (14.0 %)� 2,918,900 �� 3,084,457 �� 2,889,705 �� 8.2 %

Money market

�� 8,324,646 �� 7,491,460 �� 11.1 % 7,348,650 �� 7,069,173 �� 6,906,442 �� 20.5 %

Brokered CDs

�� 42,556 �� 9,242 �� 360.5 % 44,809 �� 51,235 �� 50,450 �� (15.6 %)�

Other time

�� 1,528,899 �� 1,504,124 �� 1.6 % 1,517,350 �� 1,573,412 �� 1,634,746 �� (6.5 %)�
��

��

��

��

��

��

Total deposits

�� 18,763,504 �� 18,201,258 �� 3.1 % 17,316,259 �� 17,509,927 �� 17,267,167 �� 8.7 %

Customer repo sweeps

�� 384,221 �� 493,451 �� (22.1 %)� 489,886 �� 548,179 �� 419,247 �� (8.4 %)�
��

��

��

��

��

��

Total deposits and customer funding

�� $ 19,147,725 �� $ 18,694,709 �� 2.4 % $ 17,806,145 �� $ 18,058,106 �� $ 17,686,414 �� 8.3 %
��

��

��

��

��

��

Network transaction deposits included above in interest-bearing demand�& money market

�� $ 2,852,943 �� $ 2,207,055 �� 29.3 % $ 2,238,923 �� $ 2,141,976 �� $ 1,936,403 �� 47.3 %

Brokered CDs

�� 42,556 �� 9,242 �� 360.5 % 44,809 �� 51,235 �� 50,450 �� (15.6 %)�
��

��

��

��

��

��

Total network and brokered funding

�� 2,895,499 �� 2,216,297 �� 30.6 % 2,283,732 �� 2,193,211 �� 1,986,853 �� 45.7 %
��

��

��

��

��

��

Net customer deposits and funding�(1)

�� $ 16,252,226 �� $ 16,478,412 �� (1.4 %)� $ 15,522,413 �� $ 15,864,895 �� $ 15,699,561 �� 3.5 %
��

��

��

��

��

��

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

�������

Quarter Average Loan Composition �� Dec�31,�2014 �� Sep�30,�2014 �� Dec14�vs�Sep14
% Change
Jun 30, 2014 �� Mar�31,�2014 �� Dec�31,�2013 �� Dec14�vs�Dec13
% Change

Commercial and industrial

�� $ 5,665,396 �� $ 5,558,135 �� 1.9 % $ 5,335,488 �� $ 4,983,943 �� $ 4,709,435 �� 20.3 %

Commercial real estate�owner occupied

�� 1,003,179 �� 1,043,001 �� (3.8 %)� 1,081,552 �� 1,093,114 �� 1,119,186 �� (10.4 %)�

Lease financing

�� 52,318 �� 51,091 �� 2.4 % 51,804 �� 54,128 �� 53,817 �� (2.8 %)�
��

��

��

��

��

��

Commercial and business lending

�� 6,720,893 �� 6,652,227 �� 1.0 % 6,468,844 �� 6,131,185 �� 5,882,438 �� 14.3 %

Commercial real estate�investor

�� 3,062,427 �� 3,013,210 �� 1.6 % 3,014,827 �� 2,993,046 �� 2,878,176 �� 6.4 %

Real estate construction

�� 1,003,716 �� 1,006,076 �� (0.2 %)� 953,021 �� 914,317 �� 858,138 �� 17.0 %
��

��

��

��

��

��

Commercial real estate lending

�� 4,066,143 �� 4,019,286 �� 1.2 % 3,967,848 �� 3,907,363 �� 3,736,314 �� 8.8 %
��

��

��

��

��

��

Total commercial

�� 10,787,036 �� 10,671,513 �� 1.1 % 10,436,692 �� 10,038,548 �� 9,618,752 �� 12.1 %

Home equity revolving lines of credit

�� 883,580 �� 875,388 �� 0.9 % 866,952 �� 868,614 �� 876,938 �� 0.8 %

Home equity loans 1st liens

�� 601,719 �� 638,592 �� (5.8 %)� 681,607 �� 724,995 �� 767,857 �� (21.6 %)�

Home equity loans junior liens

�� 169,845 �� 181,880 �� (6.6 %)� 193,727 �� 203,984 �� 214,557 �� (20.8 %)�
��

��

��

��

��

��

Home equity

�� 1,655,144 �� 1,695,860 �� (2.4 %)� 1,742,286 �� 1,797,593 �� 1,859,352 �� (11.0 %)�

Installment and credit cards

�� 455,000 �� 464,467 �� (2.0 %)� 389,794 �� 401,742 �� 413,236 �� 10.1 %

Residential mortgage

�� 4,490,075 �� 4,309,121 �� 4.2 % 4,077,617 �� 3,926,734 �� 3,856,944 �� 16.4 %
��

��

��

��

��

��

Total consumer

�� 6,600,219 �� 6,469,448 �� 2.0 % 6,209,697 �� 6,126,069 �� 6,129,532 �� 7.7 %
��

��

��

��

��

��

Total loans

�� $ 17,387,255 �� $ 17,140,961 �� 1.4 % $ 16,646,389 �� $ 16,164,617 �� $ 15,748,284 �� 10.4 %
��

��

��

��

��

��
Quarter Average Deposit Composition �� Dec�31,�2014 �� Sep�30,�2014 �� Dec14�vs�Sep14
% Change
Jun 30, 2014 �� Mar�31,�2014 �� Dec�31,�2013 �� Dec14�vs�Dec13
% Change

Noninterest-bearing demand

�� $ 4,367,031 �� $ 4,239,654 �� 3.0 % $ 4,073,310 �� $ 4,166,305 �� $ 4,353,315 �� 0.3 %

Savings

�� 1,264,195 �� 1,269,994 �� (0.5 %)� 1,267,297 �� 1,195,337 �� 1,200,338 �� 5.3 %

Interest-bearing demand

�� 3,142,537 �� 3,096,712 �� 1.5 % 2,894,446 �� 2,796,247 �� 2,852,090 �� 10.2 %

Money market

�� 8,209,091 �� 7,721,167 �� 6.3 % 7,340,244 �� 7,173,106 �� 7,748,650 �� 5.9 %

Time deposits

�� 1,549,565 �� 1,545,851 �� 0.2 % 1,597,535 �� 1,659,277 �� 1,727,138 �� (10.3 %)�
��

��

��

��

��

��

Total deposits

�� $ 18,532,419 �� $ 17,873,378 �� 3.7 % $ 17,172,832 �� $ 16,990,272 �� $ 17,881,531 �� 3.6 %
��

��

��

��

��

��

Page 9

ASSOCIATED
BANC-CORP
4Q 2014 EARNINGS PRESENTATION
JANUARY 22, 2015
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.
1


2014 HIGHLIGHTS
2
Solid
Earnings
with
Continued
Balance
Sheet
Growth
Average loans of $16.8 billion were up 8% from 2013
Commercial up 10% and Residential Mortgage up 13% from last year
Average Deposits of $17.6 billion were up 1% from 2013
Average checking balances up 2% from last year
Net Interest Income of $681 million was up 5% from 2013
Net Interest Margin of 3.08% compared to 3.17% last year
2014 Dividends of $0.37/share, up 12% from 2013
Repurchased 14.3 million shares of stock during 2014
Capital ratios remain strong and above Basel III targets
Net Income available to common shareholders of $186 million or $1.16 per share
2014 return on Tier 1 Common Equity of 9.9%, compared to 9.8% for 2013
Fourth quarter 2014 return on Tier 1 Common Equity of 10.4%
Net Interest Income
&
Net Interest Margin
Noninterest Income
&
Expenses
Capital
Balance Sheet
Net Income
&
ROT1CE
Noninterest income of $290 million declined $23 million, or 7% from 2013
Mortgage banking income declined $28 million from last year
Noninterest Expense of $679 million was down $1 million from 2013
Personnel expense declined $7 million from last year


LOAN PORTFOLIO �
ANNUAL TREND
3
2014 Average Net Loan Change (from 2013)
Loan Mix �
2014 Annual (Average)
($ in millions)
Home Equity & Installment
Commercial Real Estate
Residential Mortgage
Power & Utilities
Oil & Gas
Mortgage Warehouse
General Commercial Loans
Average Annual Loans ($ in billions)
$16.8
+13%
% Chg
+8%
+71%
+5%
$14.7
+34%
$15.7
$13.3
$13.2
Total
Commercial
& Business
Lending
+12%
+2%
(12%)


LOAN PORTFOLIO �
QUARTERLY TREND
4
4Q 2014 Average Net Loan Change (+$246 mln)
Loan Mix �
4Q 2014 (Average)
($ in millions)
Home Equity & Installment
Commercial Real Estate
Residential Mortgage
Power & Utilities
Oil & Gas
Mortgage Warehouse
General Commercial Loans
Average Quarterly Loans ($ in billions)
$17.4
+4%
% Chg
+1%
+1%
+5%
$16.6
+4%
$17.1
$16.2
$15.7
Total
Commercial
& Business
Lending
+1%
(13%)
(2%)


OIL AND GAS LENDING
5
Please
Note:
For
more
information
on
Associated
Banc-Corp�s
oil
and
gas
lending,
please
refer
to
the
presentation
posted
on
their
Investor
Relation
site
at
www.investor.associatedbank.com/presentations
Associated Bank�s Oil & Gas business is focused exclusively on the upstream sector which is also
referred
to
as
the
�Exploration
and
Production�
or
�E&P�
sector.
We focus on the small to mid-size independent segment, both public and private. We are an asset-
based lender whereby we are collateralized by a lien on oil and gas reserves.
Generally, we are a participant in a syndicated loan.
Price redeterminations are formally performed on a semi-annual basis; however, we continuously
review commodity prices as they change.
Associated�s Oil & Gas book (outstanding balance is driven by respective borrowing bases)
48� clients
Aggregate commitments of more than $1 billion; average commitment is $23 million.
As of 12-31-14, outstanding balance was $754 million; approximately 4% of total loans.
Recent
stress
test
indicates
adequate
specific
reserves
for
this
portfolio.


COMMERCIAL LINE UTILIZATION TRENDS
6
Line utilization increased in Commercial & Business Lending
Change from 3Q 14
Commercial Real
Estate (including
construction)
-
80 bps
Commercial� &
Business Lending
-
60 bps


GROWING NET INTEREST INCOME WHILE
MARGIN COMPRESSES
7
Yield on Interest-earning Assets
Cost of Interest-bearing Liabilities
Net Interest Income & Net Interest Margin
($ in millions)
Total Loan Yield
Total Interest-earning Yield
flat


NONINTEREST INCOME ANNUAL TRENDS
($ IN MILLIONS)
Core Fee-based
1
Revenue
Mortgage Banking (net) Income
Total Noninterest Income
1
Core
Fee-based
Revenue
=
Trust
service
fees
plus
Service
charges
on
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
the
press
release
tables
for
a
reconciliation
to
noninterest
income.
2
Other
Noninterest
Income
=
Total
Noninterest
Income
minus
net
Mortgage
Banking
Income
minus
Core
Fee-based
Revenue.
This
is
a
non-GAAP
measure.
Please
refer
to
the
press
release
tables
for
a
reconciliation
to
noninterest
income.
Other Noninterest Income
2
8


NONINTEREST INCOME QUARTERLY TRENDS
($ IN MILLIONS)
Core Fee-based
1
Revenue
Mortgage Banking (net) Income
Total Noninterest Income
Other Noninterest Income
2
9
1
Core
Fee-based
Revenue
=
Trust
service
fees
plus
Service
charges
on
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
the
press
release
tables
for
a
reconciliation
to
noninterest
income.
2
Other
Noninterest
Income
=
Total
Noninterest
Income
minus
net
Mortgage
Banking
Income
minus
Core
Fee-based
Revenue.
This
is
a
non-GAAP
measure.
Please
refer
to
the
press
release
tables
for
a
reconciliation
to
noninterest
income.


NONINTEREST EXPENSE ANNUAL TRENDS
($ IN MILLIONS)
Technology
3
Spend
Total Noninterest Expense
Other
Non-Personnel
Spend
4
Personnel
Spend
/
FTE
2
Trend
1
Efficiency
ratio
=
Noninterest
expense,
excluding
other
intangible
amortization,
divided
by
sum
of
taxable
equivalent
net
interest
income
plus
noninterest
income,
excluding
investment
securities
gains/losses,
net,
and
asset
gains/losses,
net.
This
is
a
non-GAAP
financial
measure.
Please
refer
to
the
appendix
for
a
reconciliation
of
this
measure.
2
FTE
=
Average
Full
Time
Equivalent
Employees
3
Technology
Spend
=
Technology
and
Equipment
expenses
4
Other
Non-Personnel
Spend
=
Total
Noninterest
Expense
less
Personnel
and
Technology
spend
Efficiency Ratio
1
62%
70%
69%
70%
69%
10


NONINTEREST EXPENSE QUARTERLY TRENDS
($ IN MILLIONS)
Technology
3
Spend
Total Noninterest Expense
Other
Non-Personnel
Spend
4
Personnel
Spend
/
FTE
2
Trend
1
Efficiency
ratio
=
Noninterest
expense,
excluding
other
intangible
amortization,
divided
by
sum
of
taxable
equivalent
net
interest
income
plus
noninterest
income,
excluding
investment
securities
gains/losses,
net,
and
asset
gains/losses,
net.
This
is
a
non-GAAP
financial
measure.
Please
refer
to
the
appendix
for
a
reconciliation
of
this
measure.
2
FTE
=
Average
Full
Time
Equivalent
Employees
3
Technology
Spend
=
Technology
and
Equipment
expenses
4
Other
Non-Personnel
Spend
=
Total
Noninterest
Expense
less
Personnel
and
Technology
spend
Efficiency
Ratio
1
73%
69%
68%
69%
70%
11


CREDIT QUALITY INDICATORS
($ IN MILLIONS)
12


INSURANCE BUSINESS ACQUISITION
13
On
January
16,
2015,
Associated
Banc-Corp
announced
its
agreement
to
acquire
Ahmann
&
Martin
Co.,
a
risk
and
employee
benefits
consulting
firm
based
in
Minnesota.
The
firm
will
be
merged
into
Associated
Financial
Group,
our
insurance
brokerage
subsidiary.
After
adjusting
for
the
effects
of
the
acquisition,
and
based
on
expected
pro
forma
insurance
revenues
of
over
$70
million,
Associated
expects
to
rank
among
the
Top
50
insurance
brokerage
firms
in
the
USA
1
.
Strategically,
this
transaction
is
expected
to:
Increase
the
scale
of
our
insurance
business,
particularly
in
the
Twin
Cities
Enhance
our
product
and
geographic
capabilities,
with
greater
P&C
specialty
capabilities
Better
balance
our
insurance
revenue
base
between
P&C
and
Benefits
lines
Provide
more
cross-sell
opportunities
The
transaction
includes
stock
consideration
of
approximately
$48
million
and
contingent
cash
consideration
of
up
to
$8
million,
subject
to
certain
conditions.
The
transaction
is
expected
to
close
in
February
2015
and
is
expected
to
be
accretive
to
2017
EPS.
1
Source:
www.BusinessInsurance.com
BI
Survey


2015 OUTLOOK
14
1
Outlook
incorporates
effects
of
Ahmann
&
Martin
Co.
acquisition.
Balance Sheet
High single digit annual average loan growth
Maintain Loan/Deposit ratio under 100%
Margin
NIM for 1Q 2015 expected to be approximately 2.95% with
modest compression throughout the year
Noninterest
Income
1
Up mid to upper single digits from 2014
Noninterest
Expense
1
Up low single digits from 2014 with a continued focus on
efficiency initiatives
Capital
Continue to follow stated corporate priorities for capital
deployment
Provision
Expected to increase with loan growth and changes in risk
grade or other indications of credit quality


APPENDIX
15
*
*
*
*
*
*
*
*
*
*


RECONCILIATION AND DEFINITIONS OF
NON-GAAP ITEMS
4Q 2013
1Q 2014
2Q 2014
3Q 2014
4Q 2014
Efficiency Ratio Reconciliation:
Efficiency ratio (1)
73.70%
70.41%
69.70%
69.44%
70.33%
Taxable equivalent adjustment
(1.49)
(1.35)
(1.32)
(1.36)
(1.40)
Asset gains, net
0.80���������
0.22
0.26
1.36
1.05
Other intangible amortization
(0.42)
(0.42)
(0.41)
(0.40)
(0.32)
Efficiency ratio, fully taxable equivalent (1)
72.59%
68.86%
68.23%
69.04%
69.66%
(1)
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).
2010
2011
2012
2013
2014
Efficiency Ratio Reconciliation:
Efficiency ratio (1)
65.35%
73.64%
72.16%
71.04%
69.97%
Taxable equivalent adjustment
(1.60)
(1.74)
(1.59)
(1.45)
(1.36)
Asset gains (losses), net
(0.77)
(0.92)
(0.86)
0.39
0.73
Other intangible amortization
(0.52)
(0.54)
(0.45)
(0.42)
(0.39)
Efficiency ratio, fully taxable equivalent (1)
62.46%
70.44%
69.26%
69.56%
68.95%
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.
16


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