ASSOCIATED BANC-CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - ASSOCIATED BANC-CORP	asb2q16presentationfinal.htm
8-K - FORM 8-K - ASSOCIATED BANC-CORP	asb-20160630form8kpr.htm

Exhibit 99.1



	NEWS RELEASE Investor Contact: Teresa Gutierrez, Senior Vice President, Director of Investor Relations 920-491-7059 Media Contact: Jennifer Kaminski, Vice President, Manager of Public Relations 920-491-7576

Associated Banc-Corp Reports Second Quarter Earnings of $0.31 per share

Revenue increases on record organic loan growth

GREEN BAY, Wis. -- July 21, 2016 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $47 million, or $0.31 per common share, for the quarter ended June 30, 2016. This compares to net income available to common equity of $40 million, or $0.27 per common share, for the quarter ended March 31, 2016.

“This quarter’s results demonstrated our ability to grow in a challenging environment. We benefit from a mix of diverse businesses and are encouraged by the consistent demand across our product offerings.

We delivered record loan growth, and together with a stable margin, saw a significant increase in net interest income. We are also pleased to report stronger fee-based revenue which highlights the resiliency of our fee product offerings,” said President and CEO Philip B. Flynn. “We held expenses in line with prior quarters and we are on target to deliver improved efficiency for the fifth straight year. Outside of energy, our credit quality metrics remain sound and net charge offs were at cyclical lows. Our customers look to Associated as a partner for growth as we continue to enhance our capabilities while delivering value to our shareholders.”

SECOND QUARTER SUMMARY


•	Average loans of $19.6 billion grew $719 million, or 4% from the first quarter


•	Total commercial lending accounted for 75% of average loan growth


•	Average deposits of $20.3 billion declined $286 million, or 1% from the first quarter


•	Net interest income of $177 million, up $5 million, or 3% from the first quarter


•	Net interest margin of 2.81% was stable from the first quarter


•	Provision for credit losses of $14 million, down $6 million from the first quarter


•	Noninterest income of $82 million, down $1 million from the prior quarter


•	Fee-based revenue of $67 million, up $2 million from the first quarter


•	Noninterest expense of $174 million was flat from the first quarter


•	Return on average common equity Tier 1 (CET1) was 9.9%


•	Total dividends per common share of $0.11 in the quarter, up 10% from the year ago quarter


•	Capital ratios remain strong with a CET1 ratio of 9.2% at quarter end

SECOND QUARTER RESULTS

Loans

Second quarter average loans of $19.6 billion increased $719 million from the first quarter, and have increased $1.5 billion from the year ago quarter.

With respect to second quarter average balances,


•	Commercial and business lending grew $354 million from the first quarter to $7.5 billion, with growth driven by general commercial lending, mortgage warehouse, and power and utilities. Commercial and business lending increased $307 million, or 4%, from the year ago quarter.


•	Commercial real estate lending grew $185 million from the first quarter to $4.7 billion. Commercial real estate lending has increased $505 million, or 12%, from the year ago quarter.


•	Consumer lending grew $181 million from the first quarter to $7.5 billion, and increased $641 million, or 9%, from the year ago quarter.

Deposits

Second quarter average deposits of $20.3 billion decreased $286 million from the first quarter, and have increased $663 million from the year ago quarter.

With respect to second quarter average balances,


•	Noninterest-bearing demand deposits decreased modestly from the first quarter to $5.0 billion, and have grown $679 million, or 16%, from the year ago quarter.


•	Interest-bearing demand deposits increased $420 million from the first quarter to $3.6 billion, and grew $390 million, or 12%, from the year ago quarter.


•	Savings deposits increased $77 million from the first quarter to $1.4 billion, and have grown $92 million, or 7%, from the year ago quarter.


•	Money market deposits declined $739 million from the first quarter to $8.7 billion, and have declined $409 million, or 4%, from the year ago quarter.


•	Time deposits declined slightly from the first quarter to $1.5 billion, and have decreased $90 million, or 6%, from the year ago quarter.

Net Interest Income and Net Interest Margin

Second quarter net interest income of $177 million was up $5 million, or 3% from the first quarter and up $10 million, or 6% from the year ago quarter. Second quarter net interest margin of 2.81% was flat from the prior quarter and 2 basis points lower than the year ago quarter.


•	Interest and fees on loans increased $3 million, or 2%, from the first quarter. This increase was partially offset by $1 million in lower interest income from investment securities.


•	Interest expense on deposits declined modestly from the first quarter, partially attributable to lower rates paid on interest-bearing demand, savings, and time deposit balances.


•	Interest on long-term funding decreased $3 million from the first quarter, driven by the retirement of $430 million of the Company’s senior notes in February 2016.

Noninterest Income

Second quarter total noninterest income of $82 million was down $1 million, or 1% from the first quarter and down $4 million, or 5% from the year ago quarter.


•	Fee-based revenue increased $2 million from the first quarter, due to increases across all categories including trust service fees, service charges on deposit accounts, card-based and other nondeposit fees, insurance commissions, and brokerage and annuity commissions.


•	Mortgage banking income decreased modestly from the first quarter. While gain on sales benefitted from higher volumes of mortgage loans originated for sale during the period, these were offset by adverse fair value marks on the Company’s pipeline and the mortgage servicing rights valuation; reflecting lower rates at quarter end.


•	All remaining noninterest income categories, on a combined basis, were down $3 million from the prior quarter primarily related to lower bank owned life insurance income and lower asset gains in the second quarter.

Noninterest Expense

Second quarter total noninterest expense of $174 million was flat from the first quarter, and down $2 million, or 1% from the year ago quarter.


•	Lower business development and advertising, occupancy, foreclosure and OREO expense, and legal and professional fees contributed to a $3 million reduction in expenses from the first quarter.


•	These savings were partially offset by $3 million in higher FDIC, personnel, and other expenses.

Taxes

Second quarter income taxes were $21 million with an effective tax rate of 30%, compared to $19 million and 31% in the first quarter, and $22 million and 31% in the year ago quarter.

Credit

The provision for credit losses was $14 million in the second quarter, down $6 million from the prior quarter, primarily attributed to a change in estimate resulting from further segmentation of mortgage warehouse loans within our specialized lending business.


•	Nonaccrual loans of $283 million were down $4 million from the first quarter. The nonaccrual loans to total loans ratio was 1.43% in the second quarter and was down from 1.49% in the prior quarter.


•	Net charge offs of $21 million were up $4 million from the first quarter. Net charge offs in the second quarter were primarily attributable to oil and gas related charge offs of $19 million.


•	Potential problem loans of $457 million were up $56 million from the first quarter, related to risk rating migration in the general commercial and oil and gas portfolios.


•	The allowance for loan losses of $268 million was down $10 million from the first quarter. The allowance for loan losses to total loans was 1.35% in the second quarter, compared to 1.44% in the first quarter.


•	The allowance related to the oil and gas portfolio was $42 million, down $7 million from March 31, 2016, and was flat to December 31, 2015. The allowance on this portfolio reflects year to date net charge offs of $32 million. The allowance represented 5.6% of total oil and gas loans at June 30, 2016, flat to 5.6% at December 31, 2015.


•	The allowance for unfunded commitments of $27 million increased $3 million from the first quarter, driven by risk rating migration and new volumes.

Capital

The Company’s capital position remains strong, with a common equity Tier 1 ratio of 9.2% at June 30, 2016. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.

SECOND QUARTER 2016 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, July 21, 2016. Interested parties can listen to the call live on the internet through the investor relations section of the Company's website, http://investor.associatedbank.com or by dialing 877-407-8037. The second quarter 2016 financial tables and an accompanying 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 second quarter 2016 earnings call. An audio archive of the webcast will be available on the Company’s website approximately fifteen minutes after the call is over.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NYSE: ASB) has total assets of $29 billion and is one of the top 50 publicly traded U.S. bank holding companies. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS

Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “will”, “intend”, “outlook”, or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent SEC filings. Such factors are incorporated herein by reference.

NON-GAAP FINANCIAL MEASURES

This press release contains references to measures which are not defined in generally accepted accounting principles (“GAAP”). Information concerning these non-GAAP financial measures can be found in the financial tables.

# # #



Associated Banc-Corp Consolidated Balance Sheets (Unaudited)
(in thousands)	Jun 30, 2016			Mar 31, 2016			Seql Qtr $ Change			Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Comp Qtr $ Change
Assets
Cash and due from banks	$	333,000		$	287,183		$	45,817		$	374,921		$	303,701		$	375,369		$	(42,369	)
Interest-bearing deposits in other financial institutions	131,680			68,025			63,655			79,764			70,023			101,573			30,107
Federal funds sold and securities purchased under agreements to resell	13,200			20,200			(7,000		)	19,000			36,490			39,850			(26,650		)
Investment securities held to maturity, at amortized cost	1,236,140			1,176,821			59,319			1,168,230			604,799			532,382			703,758
Investment securities available for sale, at fair value	4,801,766			4,905,841			(104,075		)	4,967,414			5,403,656			5,407,998			(606,232		)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	194,501			181,853			12,648			147,240			160,871			160,765			33,736
Loans held for sale	284,376			128,339			156,037			124,915			105,144			151,146			133,230
Loans	19,815,286			19,227,240			588,046			18,714,343			18,524,773			18,303,252			1,512,034
Allowance for loan losses	(267,780		)	(277,370		)	9,590			(274,264		)	(262,536		)	(261,538		)	(6,242		)
Loans, net	19,547,506			18,949,870			597,636			18,440,079			18,262,237			18,041,714			1,505,792
Premises and equipment, net	331,427			331,711			(284		)	267,606			271,119			274,338			57,089
Goodwill	971,951			971,951			—			968,844			968,844			968,844			3,107
Mortgage servicing rights, net	57,474			59,414			(1,940		)	61,341			61,402			61,192			(3,718		)
Other intangible assets, net	16,427			16,966			(539		)	16,458			16,978			17,863			(1,436		)
Trading assets	77,112			53,087			24,025			32,192			43,752			35,386			41,726
Other assets	1,042,139			1,027,606			14,533			1,043,831			1,154,750			1,012,957			29,182
Total assets	$	29,038,699		$	28,178,867		$	859,832		$	27,711,835		$	27,463,766		$	27,181,377		$	1,857,322
Liabilities and Stockholders’ Equity
Noninterest-bearing demand deposits	$	5,039,336		$	5,272,685		$	(233,349	)	$	5,562,466		$	4,657,261		$	4,332,171		$	707,165
Interest-bearing deposits	15,253,514			15,412,775			(159,261		)	15,445,199			15,901,134			14,937,392			316,122
Total deposits	20,292,850			20,685,460			(392,610		)	21,007,665			20,558,395			19,269,563			1,023,287
Federal funds purchased and securities sold under agreements to repurchase	509,150			583,247			(74,097		)	431,438			702,569			689,699			(180,549		)
Other short-term funding	1,402,407			834,161			568,246			402,978			319,766			905,837			496,570
Long-term funding	3,511,475			2,861,316			650,159			2,676,164			2,676,065			3,175,966			335,509
Trading liabilities	79,466			55,223			24,243			33,430			45,817			37,169			42,297
Accrued expenses and other liabilities	213,204			176,962			36,242			222,914			207,357			198,752			14,452
Total liabilities	26,008,552			25,196,369			812,183			24,774,589			24,509,969			24,276,986			1,731,566
Stockholders’ Equity
Preferred equity	120,201			120,347			(146		)	121,379			121,379			122,015			(1,814		)
Common equity
Common stock	1,630			1,630			—			1,642			1,642			1,642			(12		)
Surplus	1,453,285			1,447,368			5,917			1,458,522			1,455,034			1,450,200			3,085
Retained earnings	1,629,915			1,599,835			30,080			1,593,239			1,570,199			1,538,684			91,231
Accumulated other comprehensive income (loss)	13,453			2,167			11,286			(32,616		)	15,376			2,594			10,859
Treasury stock	(188,337		)	(188,849		)	512			(204,920		)	(209,833		)	(210,744		)	22,407
Total common equity	2,909,946			2,862,151			47,795			2,815,867			2,832,418			2,782,376			127,570
Total stockholders’ equity	3,030,147			2,982,498			47,649			2,937,246			2,953,797			2,904,391			125,756
Total liabilities and stockholders’ equity	$	29,038,699		$	28,178,867		$	859,832		$	27,711,835		$	27,463,766		$	27,181,377		$	1,857,322

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Associated Banc-Corp Consolidated Statements of Income (Unaudited)

						Comp Qtr					YTD		YTD		Comp YTD
(in thousands, except per share amounts)	2Q16			2Q15		$ Change			% Change		Jun 2016		Jun 2015		$ Change			% Change
Interest Income
Interest and fees on loans	$	163,059		$	152,417	$	10,642		7	%	$	322,715	$	304,362	$	18,353		6	%
Interest and dividends on investment securities:
Taxable	24,270			23,868		402			2	%	49,786		48,960		826			2	%
Tax-exempt	7,894			7,565		329			4	%	15,724		15,452		272			2	%
Other interest	1,318			1,771		(453		)	(26	)%	2,385		3,463		(1,078		)	(31	)%
Total interest income	196,541			185,621		10,920			6	%	390,610		372,237		18,373			5	%
Interest Expense
Interest on deposits	11,678			8,141		3,537			43	%	23,444		15,760		7,684			49	%
Interest on Federal funds purchased and securities sold under agreements to repurchase	378			235		143			61	%	674		466		208			45	%
Interest on other short-term funding	845			115		730			635	%	1,360		196		1,164			594	%
Interest on long-term funding	6,923			10,642		(3,719		)	(35	)%	16,428		21,514		(5,086		)	(24	)%
Total interest expense	19,824			19,133		691			4	%	41,906		37,936		3,970			10	%
Net Interest Income	176,717			166,488		10,229			6	%	348,704		334,301		14,403			4	%
Provision for credit losses	14,000			5,000		9,000			180	%	34,000		9,500		24,500			258	%
Net interest income after provision for credit losses	162,717			161,488		1,229			1	%	314,704		324,801		(10,097		)	(3	)%
Noninterest Income
Trust service fees	11,509			12,515		(1,006		)	(8	)%	22,956		24,602		(1,646		)	(7	)%
Service charges on deposit accounts	16,444			15,703		741			5	%	32,717		31,509		1,208			4	%
Card-based and other nondeposit fees	12,717			13,597		(880		)	(6	)%	24,708		26,013		(1,305		)	(5	)%
Insurance commissions	22,005			20,077		1,928			10	%	43,387		39,805		3,582			9	%
Brokerage and annuity commissions	4,098			4,192		(94		)	(2	)%	7,892		7,875		17			—	%
Mortgage banking, net	4,067			9,941		(5,874		)	(59	)%	8,271		17,349		(9,078		)	(52	)%
Capital market fees, net	3,793			2,692		1,101			41	%	7,331		5,159		2,172			42	%
Bank owned life insurance income	2,973			2,381		592			25	%	7,743		5,256		2,487			47	%
Asset gains (losses), net	(343		)	1,854		(2,197		)	(119	)%	181		2,687		(2,506		)	(93	)%
Investment securities gains, net	3,116			1,242		1,874			151	%	6,214		1,242		4,972			400	%
Other	1,789			2,288		(499		)	(22	)%	3,960		4,798		(838		)	(17	)%
Total noninterest income	82,168			86,482		(4,314		)	(5	)%	165,360		166,295		(935		)	(1	)%
Noninterest Expense
Personnel expense	102,129			102,986		(857		)	(1	)%	203,527		203,138		389			—	%
Occupancy	13,215			14,308		(1,093		)	(8	)%	27,017		31,991		(4,974		)	(16	)%
Equipment	5,396			5,739		(343		)	(6	)%	10,842		11,511		(669		)	(6	)%
Technology	14,450			16,354		(1,904		)	(12	)%	28,714		31,912		(3,198		)	(10	)%
Business development and advertising	6,591			6,829		(238		)	(3	)%	14,802		12,156		2,646			22	%
Other intangible amortization	539			888		(349		)	(39	)%	1,043		1,689		(646		)	(38	)%
Loan expense	3,442			3,681		(239		)	(6	)%	6,663		6,677		(14		)	—	%
Legal and professional fees	4,856			4,344		512			12	%	9,881		8,882		999			11	%
Foreclosure / OREO expense, net	1,330			1,264		66			5	%	3,207		2,426		781			32	%
FDIC expense	8,750			6,000		2,750			46	%	16,500		12,500		4,000			32	%
Other	13,662			14,384		(722		)	(5	)%	26,135		27,887		(1,752		)	(6	)%
Total noninterest expense	174,360			176,777		(2,417		)	(1	)%	348,331		350,769		(2,438		)	(1	)%
Income before income taxes	70,525			71,193		(668		)	(1	)%	131,733		140,327		(8,594		)	(6	)%
Income tax expense	21,434			21,793		(359		)	(2	)%	40,108		44,255		(4,147		)	(9	)%
Net income	49,091			49,400		(309		)	(1	)%	91,625		96,072		(4,447		)	(5	)%
Preferred stock dividends	2,169			1,545		624			40	%	4,367		2,773		1,594			57	%
Net income available to common equity	$	46,922		$	47,855	$	(933	)	(2	)%	$	87,258	$	93,299	$	(6,041	)	(6	)%
Earnings Per Common Share:
Basic	$	0.31		$	0.32	$	(0.01	)	(3	)%	$	0.58	$	0.62	$	(0.04	)	(6	)%
Diluted	$	0.31		$	0.31	$	—		—	%	$	0.58	$	0.61	$	(0.03	)	(5	)%
Average Common Shares Outstanding:
Basic	148,511			149,903		(1,392		)	(1	)%	148,556		149,986		(1,430		)	(1	)%
Diluted	149,530			151,108		(1,578		)	(1	)%	149,518		151,129		(1,611		)	(1	)%

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Associated Banc-Corp Consolidated Statements of Income (Unaudited)—Quarterly Trend
						Seql Qtr												Comp Qtr
(in thousands, except per share amounts)	2Q16			1Q16		$ Change			% Change		4Q15			3Q15		2Q15		$ Change			% Change
Interest Income
Interest and fees on loans	$	163,059		$	159,656	$	3,403		2	%	$	155,602		$	155,663	$	152,417	$	10,642		7	%
Interest and dividends on investment securities:
Taxable	24,270			25,516		(1,246		)	(5	)%	26,395			24,937		23,868		402			2	%
Tax-exempt	7,894			7,830		64			1	%	7,783			7,917		7,565		329			4	%
Other interest	1,318			1,067		251			24	%	1,639			1,489		1,771		(453		)	(26	)%
Total interest income	196,541			194,069		2,472			1	%	191,419			190,006		185,621		10,920			6	%
Interest Expense
Interest on deposits	11,678			11,766		(88		)	(1	)%	8,844			8,521		8,141		3,537			43	%
Interest on Federal funds purchased and securities sold under agreements to repurchase	378			296		82			28	%	229			248		235		143			61	%
Interest on other short-term funding	845			515		330			64	%	186			83		115		730			635	%
Interest on long-term funding	6,923			9,505		(2,582		)	(27	)%	10,692			10,645		10,642		(3,719		)	(35	)%
Total interest expense	19,824			22,082		(2,258		)	(10	)%	19,951			19,497		19,133		691			4	%
Net Interest Income	176,717			171,987		4,730			3	%	171,468			170,509		166,488		10,229			6	%
Provision for credit losses	14,000			20,000		(6,000		)	(30	)%	20,000			8,000		5,000		9,000			180	%
Net interest income after provision for credit losses	162,717			151,987		10,730			7	%	151,468			162,509		161,488		1,229			1	%
Noninterest Income
Trust service fees	11,509			11,447		62			1	%	11,965			12,273		12,515		(1,006		)	(8	)%
Service charges on deposit accounts	16,444			16,273		171			1	%	16,577			17,385		15,703		741			5	%
Card-based and other nondeposit fees	12,717			11,991		726			6	%	12,694			12,618		13,597		(880		)	(6	)%
Insurance commissions	22,005			21,382		623			3	%	17,997			17,561		20,077		1,928			10	%
Brokerage and annuity commissions	4,098			3,794		304			8	%	3,694			3,809		4,192		(94		)	(2	)%
Mortgage banking, net	4,067			4,204		(137		)	(3	)%	8,271			6,643		9,941		(5,874		)	(59	)%
Capital market fees, net	3,793			3,538		255			7	%	3,423			2,170		2,692		1,101			41	%
Bank owned life insurance income	2,973			4,770		(1,797		)	(38	)%	2,092			2,448		2,381		592			25	%
Asset gains (losses), net	(343		)	524		(867		)	(165	)%	(391		)	244		1,854		(2,197		)	(119	)%
Investment securities gains, net	3,116			3,098		18			1	%	4,095			2,796		1,242		1,874			151	%
Other	1,789			2,171		(382		)	(18	)%	2,580			2,118		2,288		(499		)	(22	)%
Total noninterest income	82,168			83,192		(1,024		)	(1	)%	82,997			80,065		86,482		(4,314		)	(5	)%
Noninterest Expense
Personnel expense	102,129			101,398		731			1	%	100,469			101,134		102,986		(857		)	(1	)%
Occupancy	13,215			13,802		(587		)	(4	)%	14,718			14,187		14,308		(1,093		)	(8	)%
Equipment	5,396			5,446		(50		)	(1	)%	5,695			6,003		5,739		(343		)	(6	)%
Technology	14,450			14,264		186			1	%	13,953			14,748		16,354		(1,904		)	(12	)%
Business development and advertising	6,591			8,211		(1,620		)	(20	)%	7,652			5,964		6,829		(238		)	(3	)%
Other intangible amortization	539			504		35			7	%	520			885		888		(349		)	(39	)%
Loan expense	3,442			3,221		221			7	%	4,120			3,305		3,681		(239		)	(6	)%
Legal and professional fees	4,856			5,025		(169		)	(3	)%	3,963			4,207		4,344		512			12	%
Foreclosure / OREO expense, net	1,330			1,877		(547		)	(29	)%	2,371			645		1,264		66			5	%
FDIC expense	8,750			7,750		1,000			13	%	7,500			6,000		6,000		2,750			46	%
Other	13,662			12,473		1,189			10	%	15,032			14,507		14,384		(722		)	(5	)%
Total noninterest expense	174,360			173,971		389			—	%	175,993			171,585		176,777		(2,417		)	(1	)%
Income before income taxes	70,525			61,208		9,317			15	%	58,472			70,989		71,193		(668		)	(1	)%
Income tax expense	21,434			18,674		2,760			15	%	15,681			21,551		21,793		(359		)	(2	)%
Net income	49,091			42,534		6,557			15	%	42,791			49,438		49,400		(309		)	(1	)%
Preferred stock dividends	2,169			2,198		(29		)	(1	)%	2,198			2,184		1,545		624			40	%
Net income available to common equity	$	46,922		$	40,336	$	6,586		16	%	$	40,593		$	47,254	$	47,855	$	(933	)	(2	)%
Earnings Per Common Share:
Basic	$	0.31		$	0.27	$	0.04		15	%	$	0.27		$	0.31	$	0.32	$	(0.01	)	(3	)%
Diluted	$	0.31		$	0.27	$	0.04		15	%	$	0.27		$	0.31	$	0.31	$	—		—	%
Average Common Shares Outstanding:
Basic	148,511			148,601		(90		)	—	%	148,834			148,614		149,903		(1,392		)	(1	)%
Diluted	149,530			149,454		76			—	%	150,163			149,799		151,108		(1,578		)	(1	)%

Page 3



Associated Banc-Corp Selected Quarterly Information
($ in millions, except share and per share, full time equivalent employee data and branch count)	YTD Jun 2016			YTD Jun 2015			2Q16			1Q16			4Q15			3Q15			2Q15
Per Common Share Data
Dividends	$	0.22		$	0.20		$	0.11		$	0.11		$	0.11		$	0.10		$	0.10
Market value:
High	18.84			20.84			18.84			18.79			20.61			20.55			20.84
Low	15.48			16.62			15.84			15.48			17.98			17.17			18.50
Close	17.15			20.27			17.15			17.94			18.75			17.97			20.27
Book value	19.27			18.44			19.27			18.96			18.62			18.77			18.44
Tangible book value / share	$	12.72		$	11.90		$	12.72		$	12.41		$	12.10		$	12.23		$	11.90
Performance Ratios (annualized)
Return on average assets	0.66		%	0.73		%	0.69		%	0.62		%	0.62		%	0.72		%	0.74		%
Effective tax rate	30.45		%	31.54		%	30.39		%	30.51		%	26.82		%	30.36		%	30.61		%
Dividend payout ratio⁽¹⁾	37.93		%	32.26		%	35.48		%	40.74		%	40.74		%	32.26		%	31.25		%
Selected Trend Information
Average full time equivalent employees	4,394			4,443			4,415			4,374			4,378			4,421			4,465
Branch count							215			215			215			225			228
Trust assets under management, at market value							$	7,944		$	7,844		$	7,729		$	7,626		$	8,068
Mortgage loans originated for sale during period							$	324		$	194		$	317		$	292		$	351
Mortgage portfolio serviced for others							$	7,776		$	7,877		$	7,915		$	7,907		$	7,898
Mortgage servicing rights, net / mortgage portfolio serviced for others							0.74		%	0.75		%	0.77		%	0.78		%	0.77		%
Selected Quarterly Ratios
Loans / deposits							97.65		%	92.95		%	89.08		%	90.11		%	94.99		%
Stockholders’ equity / assets							10.43		%	10.58		%	10.60		%	10.76		%	10.69		%
Shares outstanding, end of period							151,036			150,994			151,239			150,928			150,862
Risk-based Capital ^{(2) (3)}
Total risk-weighted assets							$	21,169		$	20,454		$	19,930		$	19,866		$	19,610
Common equity Tier 1							$	1,941		$	1,903		$	1,898		$	1,865		$	1,825
Common equity Tier 1 capital ratio							9.17		%	9.30		%	9.52		%	9.39		%	9.31		%
Tier 1 capital ratio							9.73		%	9.88		%	10.12		%	9.98		%	9.90		%
Total capital ratio							12.16		%	12.35		%	12.62		%	12.49		%	12.43		%
Tier 1 leverage ratio							7.44		%	7.55		%	7.60		%	7.53		%	7.53		%


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


(2)	The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions.


(3)	June 30, 2016 data is estimated.

Page 4



Associated Banc-Corp Selected Asset Quality Information
(in thousands)	Jun 30, 2016			Mar 31, 2016			Seql Qtr % Change		Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Comp Qtr % Change
Allowance for Loan Losses
Balance at beginning of period	$	277,370		$	274,264		1	%	$	262,536		$	261,538		$	265,268		5	%
Provision for loan losses	11,000			20,000			(45	)%	19,500			9,000			5,000			120	%
Charge offs	(24,621		)	(21,245		)	16	%	(12,741		)	(11,732		)	(14,537		)	69	%
Recoveries	4,031			4,351			(7	)%	4,969			3,730			5,807			(31	)%
Net charge offs	(20,590		)	(16,894		)	22	%	(7,772		)	(8,002		)	(8,730		)	136	%
Balance at end of period	$	267,780		$	277,370		(3	)%	$	274,264		$	262,536		$	261,538		2	%
Allowance for Unfunded Commitments
Balance at beginning of period	$	24,400		$	24,400		—	%	$	23,900		$	24,900		$	24,900		(2	)%
Provision for unfunded commitments	3,000			—			N/M		500			(1,000		)	—			N/M
Balance at end of period	$	27,400		$	24,400		12	%	$	24,400		$	23,900		$	24,900		10	%
Allowance for credit losses	$	295,180		$	301,770		(2	)%	$	298,664		$	286,436		$	286,438		3	%
Provision for credit losses	$	14,000		$	20,000		(30	)%	$	20,000		$	8,000		$	5,000		180	%
Net Charge Offs	Jun 30, 2016			Mar 31, 2016			Seql Qtr % Change		Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Comp Qtr % Change
Commercial and industrial	$	(18,564	)	$	(14,936	)	24	%	$	(4,586	)	$	(4,709	)	$	(3,921	)	373	%
Commercial real estate—owner occupied	(20		)	(43		)	(53	)%	(291		)	504			(1,198		)	(98	)%
Commercial and business lending	(18,584		)	(14,979		)	24	%	(4,877		)	(4,205		)	(5,119		)	263	%
Commercial real estate—investor	(560		)	1,239			(145	)%	(665		)	(496		)	(1,856		)	(70	)%
Real estate construction	(219		)	(28		)	N/M		140			(38		)	673			(133	)%
Commercial real estate lending	(779		)	1,211			(164	)%	(525		)	(534		)	(1,183		)	(34	)%
Total commercial	(19,363		)	(13,768		)	41	%	(5,402		)	(4,739		)	(6,302		)	207	%
Residential mortgage	(757		)	(1,232		)	(39	)%	(714		)	(1,562		)	(1,278		)	(41	)%
Home equity revolving lines of credit	275			(902		)	(130	)%	(294		)	(533		)	(246		)	(212	)%
Home equity loans junior liens	42			(244		)	(117	)%	(623		)	(358		)	(118		)	(136	)%
Home equity	317			(1,146		)	(128	)%	(917		)	(891		)	(364		)	(187	)%
Other consumer	(787		)	(748		)	5	%	(739		)	(810		)	(786		)	—	%
Total consumer	(1,227		)	(3,126		)	(61	)%	(2,370		)	(3,263		)	(2,428		)	(49	)%
Total net charge offs	$	(20,590	)	$	(16,894	)	22	%	$	(7,772	)	$	(8,002	)	$	(8,730	)	136	%
Net Charge Offs to Average Loans (in basis points) *	Jun 30, 2016			Mar 31, 2016					Dec 31, 2015			Sep 30, 2015			Jun 30, 2015
Commercial and industrial	(114		)	(97		)			(31		)	(31		)	(25		)
Commercial real estate—owner occupied	(1		)	(2		)			(12		)	21			(48		)
Commercial and business lending	(100		)	(85		)			(28		)	(24		)	(29		)
Commercial real estate—investor	(7		)	15					(8		)	(6		)	(24		)
Real estate construction	(7		)	(1		)			5			(1		)	26
Commercial real estate lending	(7		)	11					(5		)	(5		)	(11		)
Total commercial	(64		)	(48		)			(19		)	(17		)	(22		)
Residential mortgage	(5		)	(8		)			(5		)	(11		)	(9		)
Home equity revolving lines of credit	13			(41		)			(13		)	(24		)	(11		)
Home equity loans junior liens	15			(83		)			(195		)	(104		)	(32		)
Home equity	13			(46		)			(36		)	(35		)	(14		)
Other consumer	(78		)	(72		)			(69		)	(75		)	(73		)
Total consumer	(7		)	(17		)			(13		)	(18		)	(14		)
Total net charge offs	(42		)	(36		)			(17		)	(17		)	(19		)
Credit Quality	Jun 30, 2016			Mar 31, 2016			Seql Qtr % Change		Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Comp Qtr % Change
Nonaccrual loans	$	282,602		$	286,395		(1	)%	$	178,258		$	147,454		$	160,361		76	%
Other real estate owned (OREO)	13,669			16,056			(15	)%	14,569			13,740			13,557			1	%
Total nonperforming assets	$	296,271		$	302,451		(2	)%	$	192,827		$	161,194		$	173,918		70	%
Loans 90 or more days past due and still accruing	$	1,494		$	1,629		(8	)%	$	1,648		$	1,484		$	1,662		(10	)%
Allowance for loan losses to loans	1.35		%	1.44		%			1.47		%	1.42		%	1.43		%
Allowance for loan losses to nonaccrual loans	94.76			96.85					153.86			178.05			163.09
Nonaccrual loans to total loans	1.43			1.49					0.95			0.80			0.88
Nonperforming assets to total loans plus OREO	1.49			1.57					1.03			0.87			0.95
Nonperforming assets to total assets	1.02			1.07					0.70			0.59			0.64
Year-to-date net charge offs to average loans *	0.39			0.36					0.16			0.16			0.16
* Annualized
N/M = Not meaningful

Page 5



Associated Banc-Corp Selected Asset Quality Information (continued)
(in thousands)	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Nonaccrual loans
Commercial and industrial	$	193,439	$	197,115	(2	)%	$	93,575	$	60,184	$	66,394	191	%
Commercial real estate—owner occupied	9,635		9,443		2	%	8,049		13,368		18,821		(49	)%
Commercial and business lending	203,074		206,558		(2	)%	101,624		73,552		85,215		138	%
Commercial real estate—investor	11,528		12,330		(7	)%	8,643		6,921		6,090		89	%
Real estate construction	957		840		14	%	940		997		2,906		(67	)%
Commercial real estate lending	12,485		13,170		(5	)%	9,583		7,918		8,996		39	%
Total commercial	215,559		219,728		(2	)%	111,207		81,470		94,211		129	%
Residential mortgage	52,300		52,212		—	%	51,482		51,957		51,920		1	%
Home equity revolving lines of credit	8,797		8,822		—	%	9,917		8,060		8,420		4	%
Home equity loans junior liens	5,566		5,250		6	%	5,327		5,581		5,356		4	%
Home equity	14,363		14,072		2	%	15,244		13,641		13,776		4	%
Other consumer	380		383		(1	)%	325		386		454		(16	)%
Total consumer	67,043		66,667		1	%	67,051		65,984		66,150		1	%
Total nonaccrual loans	$	282,602	$	286,395	(1	)%	$	178,258	$	147,454	$	160,361	76	%

Restructured loans (accruing)	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Commercial and industrial	$	29,179	$	28,908	1	%	$	29,293	$	28,598	$	32,063	(9	)%
Commercial real estate—owner occupied	7,509		7,693		(2	)%	7,877		7,343		5,433		38	%
Commercial and business lending	36,688		36,601		—	%	37,170		35,941		37,496		(2	)%
Commercial real estate—investor	20,191		20,993		(4	)%	21,915		18,580		22,009		(8	)%
Real estate construction	372		386		(4	)%	510		485		714		(48	)%
Commercial real estate lending	20,563		21,379		(4	)%	22,425		19,065		22,723		(10	)%
Total commercial	57,251		57,980		(1	)%	59,595		55,006		60,219		(5	)%
Residential mortgage	18,314		19,807		(8	)%	19,870		20,054		21,373		(14	)%
Home equity revolving lines of credit	576		1,377		(58	)%	1,332		1,121		1,222		(53	)%
Home equity loans junior liens	6,379		5,540		15	%	5,737		5,824		6,610		(3	)%
Home equity	6,955		6,917		1	%	7,069		6,945		7,832		(11	)%
Other consumer	906		893		1	%	829		804		796		14	%
Total consumer	26,175		27,617		(5	)%	27,768		27,803		30,001		(13	)%
Total restructured loans (accruing)	$	83,426	$	85,597	(3	)%	$	87,363	$	82,809	$	90,220	(8	)%
Restructured loans included in nonaccrual loans (not included with restructed loans (accruing))	$	34,841	$	35,232	(1	)%	$	37,684	$	36,583	$	43,699	(20	)%

Accruing Loans 30-89 Days Past Due	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Commercial and industrial	$	2,124	$	2,901	(27	)%	$	1,011	$	3,296	$	6,357	(67	)%
Commercial real estate—owner occupied	193		520		(63	)%	7,142		2,018		1,090		(82	)%
Commercial and business lending	2,317		3,421		(32	)%	8,153		5,314		7,447		(69	)%
Commercial real estate—investor	2,715		1,072		153	%	291		1,218		19,843		(86	)%
Real estate construction	524		415		26	%	296		373		312		68	%
Commercial real estate lending	3,239		1,487		118	%	587		1,591		20,155		(84	)%
Total commercial	5,556		4,908		13	%	8,740		6,905		27,602		(80	)%
Residential mortgage	7,382		3,594		105	%	4,930		4,811		6,602		12	%
Home equity revolving lines of credit	6,075		3,582		70	%	5,559		6,142		5,157		18	%
Home equity loans junior liens	1,655		2,222		(26	)%	2,360		2,423		1,894		(13	)%
Home equity	7,730		5,804		33	%	7,919		8,565		7,051		10	%
Other consumer	1,895		1,682		13	%	1,870		1,723		1,655		15	%
Total consumer	17,007		11,080		53	%	14,719		15,099		15,308		11	%
Total accruing loans 30-89 days past due	$	22,563	$	15,988	41	%	$	23,459	$	22,004	$	42,910	(47	)%

Potential Problem Loans	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Commercial and industrial	$	379,818	$	328,464	16	%	$	233,130	$	192,174	$	127,028	199	%
Commercial real estate—owner occupied	45,671		41,107		11	%	35,706		41,466		41,997		9	%
Commercial and business lending	425,489		369,571		15	%	268,836		233,640		169,025		152	%
Commercial real estate—investor	25,081		25,385		(1	)%	25,944		23,633		23,543		7	%
Real estate construction	2,117		2,422		(13	)%	3,919		2,354		1,327		60	%
Commercial real estate lending	27,198		27,807		(2	)%	29,863		25,987		24,870		9	%
Total commercial	452,687		397,378		14	%	298,699		259,627		193,895		133	%
Residential mortgage	3,953		3,488		13	%	2,796		3,966		5,341		(26	)%
Home equity revolving lines of credit	62		48		29	%	48		141		202		(69	)%
Home equity loans junior liens	32		161		(80	)%	174		86		230		(86	)%
Home equity	94		209		(55	)%	222		227		432		(78	)%
Total consumer	4,047		3,697		9	%	3,018		4,193		5,773		(30	)%
Total potential problem loans	$	456,734	$	401,075	14	%	$	301,717	$	263,820	$	199,668	129	%

Page 6



Associated Banc-Corp Net Interest Income Analysis—Fully Tax-Equivalent Basis — Sequential and Comparable Quarter
	Quarter ended,
	June 30, 2016						March 31, 2016						June 30, 2015
(in thousands)	Average Balance		Interest Income /Expense		Average Yield /Rate		Average Balance		Interest Income /Expense		Average Yield /Rate		Average Balance		Interest Income /Expense		Average Yield /Rate
Assets
Earning assets:
Loans:^{(1) (2) (3)}
Commercial and business lending	$	7,474,633	$	59,052	3.18	%	$	7,121,061	$	57,258	3.23	%	$	7,167,315	$	56,329	3.15	%
Commercial real estate lending	4,654,111		40,169		3.47	%	4,469,531		38,989		3.51	%	4,148,955		35,688		3.45	%
Total commercial	12,128,744		99,221		3.29	%	11,590,592		96,247		3.34	%	11,316,270		92,017		3.26	%
Residential mortgage	6,129,924		48,382		3.16	%	5,920,280		47,748		3.23	%	5,411,193		44,447		3.29	%
Retail	1,383,317		16,414		4.75	%	1,411,958		16,640		4.72	%	1,460,842		16,857		4.62	%
Total loans	19,641,985		164,017		3.35	%	18,922,830		160,635		3.41	%	18,188,305		153,321		3.38	%
Investment securities:
Taxable	4,967,437		24,270		1.95	%	5,034,072		25,516		2.03	%	4,761,445		23,868		2.01	%
Tax-exempt⁽¹⁾	1,064,252		12,077		4.54	%	1,045,210		11,980		4.58	%	942,032		11,575		4.92	%
Other short-term investments	294,375		1,318		1.80	%	270,261		1,067		1.59	%	374,585		1,771		1.89	%
Investments and other	6,326,064		37,665		2.38	%	6,349,543		38,563		2.43	%	6,078,062		37,214		2.45	%
Total earning assets	25,968,049		$	201,682	3.12	%	25,272,373		$	199,198	3.16	%	24,266,367		$	190,535	3.15	%
Other assets, net	2,674,427						2,426,475						2,461,765
Total assets	$	28,642,476					$	27,698,848					$	26,728,132
Liabilities and stockholder's equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	1,445,020	$	228	0.06	%	$	1,367,646	$	236	0.07	%	$	1,352,616	$	259	0.08	%
Interest-bearing demand	3,640,733		2,144		0.24	%	3,220,409		2,032		0.25	%	3,251,196		1,037		0.13	%
Money market	8,692,782		6,309		0.29	%	9,432,245		6,444		0.27	%	9,101,589		4,088		0.18	%
Time deposits	1,540,424		2,997		0.78	%	1,558,278		3,054		0.79	%	1,630,242		2,757		0.68	%
Total interest-bearing deposits	15,318,959		11,678		0.31	%	15,578,578		11,766		0.30	%	15,335,643		8,141		0.21	%
Federal funds purchased and securities sold under agreements to repurchase	674,360		378		0.23	%	559,459		296		0.21	%	662,047		235		0.14	%
Other short-term funding	1,209,511		845		0.28	%	777,898		515		0.27	%	236,459		115		0.20	%
Total short-term funding	1,883,871		1,223		0.26	%	1,337,357		811		0.24	%	898,506		350		0.16	%
Long-term funding	3,052,581		6,923		0.91	%	2,582,538		9,505		1.47	%	3,077,012		10,642		1.38	%
Total short and long-term funding	4,936,452		8,146		0.66	%	3,919,895		10,316		1.05	%	3,975,518		10,992		1.11	%
Total interest-bearing liabilities	20,255,411		$	19,824	0.39	%	19,498,473		$	22,082	0.45	%	19,311,161		$	19,133	0.40	%
Noninterest-bearing demand deposits	4,969,994						4,996,596						4,290,567
Other liabilities	228,027						233,029						251,743
Stockholders’ equity	3,189,044						2,970,750						2,874,661
Total liabilities and stockholders’ equity	$	28,642,476					$	27,698,848					$	26,728,132
Interest rate spread					2.73	%					2.71	%					2.75	%
Net free funds					0.08	%					0.10	%					0.08	%
Fully tax-equivalent net interest income and net interest margin			$	181,858	2.81	%			$	177,116	2.81	%			$	171,402	2.83	%
Fully tax-equivalent adjustment			5,141						5,129						4,914
Net interest income			$	176,717					$	171,987					$	166,488


(1)	The yield on tax-exempt loans and securities is computed on a fully tax-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—Fully Tax-Equivalent Basis — Year Over Year
	Six Months ended June 30,
	2016						2015
(in thousands)	Average Balance		Interest Income /Expense		Average Yield /Rate		Average Balance		Interest Income /Expense		Average Yield /Rate
Assets
Earning assets:
Loans:^{(1) (2) (3)}
Commercial and business lending	$	7,297,847	$	116,310	3.20	%	$	7,080,723	$	112,244	3.19	%
Commercial real estate lending	4,561,821		79,158		3.49	%	4,125,972		72,091		3.52	%
Total commercial	11,859,668		195,468		3.31	%	11,206,695		184,335		3.32	%
Residential mortgage	6,025,102		96,130		3.19	%	5,321,942		87,919		3.31	%
Retail	1,397,638		33,054		4.74	%	1,474,104		33,938		4.62	%
Total loans	19,282,408		324,652		3.38	%	18,002,741		306,192		3.42	%
Investment securities
Taxable	5,000,754		49,786		1.99	%	4,782,809		48,960		2.05	%
Tax-exempt⁽¹⁾	1,054,731		24,057		4.56	%	946,161		23,642		5.00	%
Other short-term investments	282,318		2,385		1.70	%	475,812		3,463		1.46	%
Investments and other	6,337,803		76,228		2.41	%	6,204,782		76,065		2.45	%
Total earning assets	25,620,211		$	400,880	3.14	%	24,207,523		$	382,257	3.17	%
Other assets, net	2,450,451						2,458,235
Total assets	$	28,070,662					$	26,665,758
Liabilities and stockholder's equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	1,406,333	$	464	0.07	%	$	1,315,250	$	497	0.08	%
Interest-bearing demand	3,430,571		4,176		0.24	%	3,227,593		2,087		0.13	%
Money market	9,062,514		12,753		0.28	%	8,878,663		7,873		0.18	%
Time deposits	1,549,351		6,051		0.79	%	1,612,312		5,303		0.66	%
Total interest-bearing deposits	15,448,769		23,444		0.31	%	15,033,818		15,760		0.21	%
Federal funds purchased and securities sold under agreements to repurchase	617,007		674		0.22	%	623,984		466		0.15	%
Other short-term funding	993,704		1,360		0.28	%	178,173		196		0.22	%
Total short-term funding	1,610,711		2,034		0.25	%	802,157		662		0.17	%
Long-term funding	2,817,560		16,428		1.17	%	3,402,382		21,514		1.27	%
Total short and long-term funding	4,428,271		18,462		0.84	%	4,204,539		22,176		1.06	%
Total interest-bearing liabilities	19,877,040		$	41,906	0.42	%	19,238,357		$	37,936	0.40	%
Noninterest-bearing demand deposits	4,983,197						4,308,463
Other liabilities	230,528						259,160
Stockholders’ equity	2,979,897						2,859,778
Total liabilities and stockholders’ equity	$	28,070,662					$	26,665,758
Interest rate spread					2.72	%					2.77	%
Net free funds					0.09	%					0.09	%
Fully tax-equivalent net interest income and net interest margin			$	358,974	2.81	%			$	344,321	2.86	%
Fully tax-equivalent adjustment			10,270						10,020
Net interest income			$	348,704					$	334,301


(1)	The yield on tax exempt loans and securities is computed on a fully tax-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 Loan and Deposit Composition (in thousands)
Period End Loan Composition	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Commercial and industrial	$	6,701,986	$	6,511,648	3	%	$	6,190,683	$	6,128,080	$	6,255,092	7	%
Commercial real estate—owner occupied	921,736		917,285		—	%	918,212		966,689		978,183		(6	)%
Commercial and business lending	7,623,722		7,428,933		3	%	7,108,895		7,094,769		7,233,275		5	%
Commercial real estate—investor	3,495,791		3,276,733		7	%	3,234,266		3,183,352		3,126,440		12	%
Real estate construction	1,285,573		1,184,398		9	%	1,162,145		1,124,280		1,092,308		18	%
Commercial real estate lending	4,781,364		4,461,131		7	%	4,396,411		4,307,632		4,218,748		13	%
Total commercial	12,405,086		11,890,064		4	%	11,505,306		11,402,401		11,452,023		8	%
Residential mortgage	6,035,720		5,944,457		2	%	5,783,267		5,682,178		5,398,434		12	%
Home equity revolving lines of credit	861,311		867,860		(1	)%	883,759		883,573		880,628		(2	)%
Home equity loans junior liens	107,460		115,134		(7	)%	122,043		130,892		141,344		(24	)%
Home equity	968,771		982,994		(1	)%	1,005,802		1,014,465		1,021,972		(5	)%
Other consumer	405,709		409,725		(1	)%	419,968		425,729		430,823		(6	)%
Total consumer	7,410,200		7,337,176		1	%	7,209,037		7,122,372		6,851,229		8	%
Total loans	$	19,815,286	$	19,227,240	3	%	$	18,714,343	$	18,524,773	$	18,303,252	8	%

Period End Deposit and Customer Funding Composition	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Noninterest-bearing demand	$	5,039,336	$	5,272,685	(4	)%	$	5,562,466	$	4,657,261	$	4,332,171	16	%
Savings	1,451,801		1,426,951		2	%	1,334,420		1,346,407		1,359,478		7	%
Interest-bearing demand	3,789,138		3,698,941		2	%	3,445,000		3,416,429		3,576,311		6	%
Money market	8,448,543		8,718,841		(3	)%	9,102,977		9,516,503		8,374,186		1	%
Brokered CDs	46,268		41,440		12	%	42,443		42,689		39,760		16	%
Other time	1,517,764		1,526,602		(1	)%	1,520,359		1,579,106		1,587,657		(4	)%
Total deposits	20,292,850		20,685,460		(2	)%	21,007,665		20,558,395		19,269,563		5	%
Customer funding	464,880		508,262		(9	)%	383,568		524,630		433,044		7	%
Total deposits and customer funding	$	20,757,730	$	21,193,722	(2	)%	$	21,391,233	$	21,083,025	$	19,702,607	5	%
Network transaction deposits included above in interest-bearing demand & money market	$	3,141,214	$	3,399,054	(8	)%	$	3,174,911	$	3,207,867	$	2,920,939	8	%
Brokered CDs	46,268		41,440		12	%	42,443		42,689		39,760		16	%
Total network and brokered funding	3,187,482		3,440,494		(7	)%	3,217,354		3,250,556		2,960,699		8	%
Net customer deposits and funding⁽¹⁾	$	17,570,248	$	17,753,228	(1	)%	$	18,173,879	$	17,832,469	$	16,741,908	5	%

Quarter Average Loan Composition	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Commercial and industrial	$	6,559,613	$	6,207,458	6	%	$	5,947,939	$	6,119,552	$	6,171,334	6	%
Commercial real estate—owner occupied	915,020		913,603		—	%	944,223		970,112		995,981		(8	)%
Commercial and business lending	7,474,633		7,121,061		5	%	6,892,162		7,089,664		7,167,315		4	%
Commercial real estate—investor	3,448,741		3,298,522		5	%	3,266,008		3,134,454		3,110,637		11	%
Real estate construction	1,205,370		1,171,009		3	%	1,107,452		1,125,875		1,038,318		16	%
Commercial real estate lending	4,654,111		4,469,531		4	%	4,373,460		4,260,329		4,148,955		12	%
Total commercial	12,128,744		11,590,592		5	%	11,265,622		11,349,993		11,316,270		7	%
Residential mortgage	6,129,924		5,920,280		4	%	5,845,557		5,658,253		5,411,193		13	%
Home equity revolving lines of credit	863,941		876,820		(1	)%	882,599		880,660		881,036		(2	)%
Home equity loans junior liens	111,372		118,610		(6	)%	126,658		136,254		147,391		(24	)%
Home equity	975,313		995,430		(2	)%	1,009,257		1,016,914		1,028,427		(5	)%
Other consumer	408,004		416,528		(2	)%	422,252		427,589		432,415		(6	)%
Total consumer	7,513,241		7,332,238		2	%	7,277,066		7,102,756		6,872,035		9	%
Total loans	$	19,641,985	$	18,922,830	4	%	$	18,542,688	$	18,452,749	$	18,188,305	8	%

Quarter Average Deposit Composition	Jun 30, 2016		Mar 31, 2016		Seql Qtr % Change		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Comp Qtr % Change
Noninterest-bearing demand	$	4,969,994	$	4,996,596	(1	)%	$	4,967,719	$	4,573,840	$	4,290,567	16	%
Savings	1,445,020		1,367,646		6	%	1,358,141		1,357,677		1,352,616		7	%
Interest-bearing demand	3,640,733		3,220,409		13	%	3,150,628		3,199,391		3,251,196		12	%
Money market	8,692,782		9,432,245		(8	)%	9,534,551		9,538,030		9,101,589		(4	)%
Time deposits	1,540,424		1,558,278		(1	)%	1,604,864		1,624,661		1,630,242		(6	)%
Total deposits	$	20,288,953	$	20,575,174	(1	)%	$	20,615,903	$	20,293,599	$	19,626,210	3	%


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

Page 9



Associated Banc-Corp Non-GAAP Financial Measures Reconciliation
($ in millions)	YTD Jun 2016			YTD Jun 2015			2Q16			1Q16			4Q15			3Q15			2Q15
Tangible Common Equity Reconciliation ⁽¹⁾
Common equity							$	2,910		$	2,862		$	2,816		$	2,832		$	2,782
Goodwill and other intangible assets, net							(988		)	(989		)	(985		)	(986		)	(987		)
Tangible common equity							$	1,922		$	1,873		$	1,831		$	1,846		$	1,795
Tangible Assets Reconciliation ⁽¹⁾
Total assets							$	29,039		$	28,179		$	27,712		$	27,464		$	27,181
Goodwill and other intangible assets, net							(988		)	(989		)	(985		)	(986		)	(987		)
Tangible assets							$	28,051		$	27,190		$	26,727		$	26,478		$	26,194
Average Tangible Common Equity and Common Equity Tier 1 Reconciliation⁽¹⁾
Common equity	$	2,859		$	2,790		$	2,869		$	2,849		$	2,819		$	2,798		$	2,794
Goodwill and other intangible assets, net	(989		)	(979		)	(989		)	(989		)	(985		)	(986		)	(987		)
Tangible common equity	1,870			1,811			1,880			1,860			1,834			1,812			1,807
Less: Accumulated other comprehensive income / loss	2			(17		)	1			3			4			(7		)	(16		)
Less: Deferred tax assets / deferred tax liabilities, net	33			18			32			33			34			32			29
Average common equity Tier 1	$	1,905		$	1,812		$	1,913		$	1,896		$	1,872		$	1,837		$	1,820
Selected Trend Information ⁽²⁾
Fee-based revenue ⁽³⁾	$	132		$	130		$	67		$	65		$	63		$	64		$	66
Total revenue ⁽⁴⁾	$	514		$	501		$	259		$	255		$	254		$	251		$	253
Selected Equity and Performance Ratios ^{(1) (5)}
Tangible common equity / tangible assets							6.85		%	6.89		%	6.85		%	6.97		%	6.86		%
Return on average equity	6.18		%	6.77		%	6.19		%	5.76		%	5.77		%	6.72		%	6.89		%
Return on average tangible common equity	9.38		%	10.39		%	10.04		%	8.72		%	8.78		%	10.35		%	10.62		%
Return on average common equity Tier 1	9.21		%	10.38		%	9.86		%	8.55		%	8.60		%	10.20		%	10.55		%
Efficiency Ratio Reconciliation ⁽⁶⁾
Federal Reserve efficiency ratio	69.18		%	70.24		%	69.34		%	69.01		%	70.49		%	68.85		%	70.23		%
Fully tax-equivalent adjustment	(1.36		)%	(1.37		)%	(1.36		)%	(1.37		)%	(1.52		)%	(1.38		)%	(1.35		)%
Other intangible amortization	(0.21		)%	(0.34		)%	(0.21		)%	(0.20		)%	(0.21		)%	(0.36		)%	(0.35		)%
Fully tax-equivalent efficiency ratio	67.61		%	68.53		%	67.77		%	67.44		%	68.76		%	67.11		%	68.53		%


(1)	The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net, which is a non-GAAP financial measure. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.


(2)	These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation’s results of operations.


(3)	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 Pages 2 and 3 of the Consolidated Statements of Income.


(4)	Total revenue, a non-GAAP financial measure, is the sum of net interest income and noninterest income, as presented on Pages 2 and 3 of the Consolidated Statements of Income.

(5)

The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. These regulatory capital measurements are used by management, regulators, investors, and analysts to assess, monitor and compare the quality and composition of our capital with the capital of other financial services companies.

(6)

The efficiency ratio as defined by the Federal Reserve guidance is noninterest expense (which includes the provision for unfunded commitments) divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. The fully tax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net. Management believes the fully tax-equivalent efficiency ratio, which adjusts net interest income for the tax-favored status of certain loans and investment securities, to be the preferred industry measurement as it enhances the comparability of net interest income arising from taxable and tax-exempt sources.

Page 10

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