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	asb3q16presentationfinal.htm
8-K - FORM 8-K - ASSOCIATED BANC-CORP	asb-20160930form8kpr.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 Third Quarter Earnings of $0.34 per share

Record deposits and capital markets revenues contribute to bottom line growth

GREEN BAY, Wis. -- October 20, 2016 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $52 million, or $0.34 per common share, for the quarter ended September 30, 2016. This compares to net income available to common equity of $47 million, or $0.31 per common share, for both the quarters ended June 30, 2016 and September 30, 2015.

“In the third quarter, we reached record deposit levels. We saw significant seasonal deposit inflows and we are particularly pleased with double-digit year over year growth in demand deposits. Average loans continued to grow and we remain on track to meet our 2016 loan guidance. Mortgage banking activity and record capital markets revenues drove noninterest income higher in the third quarter, which more than offset seasonally lower insurance commissions and additional loan loss provisions,” said President and CEO Philip B. Flynn.

THIRD QUARTER SUMMARY


•	Average loans of $20.1 billion increased $411 million, or 2% from the second quarter


•	Total commercial lending grew 10% year over year


•	Average deposits of $21.4 billion increased $1.1 billion, or 5% from the second quarter


•	Noninterest-bearing demand deposits grew 13% year over year


•	Net interest income of $179 million was up $2 million, or 1% from the second quarter


•	Net interest income grew 5% year over year


•	Net interest margin of 2.77%, down from 2.81% in the second quarter


•	Net interest margin was down 5 basis points year over year


•	Provision for credit losses of $21 million was up $7 million from the second quarter


•	Noninterest income of $95 million was up $13 million, or 16% from the second quarter


•	Noninterest expense of $175 million was up $1 million, or 1% from the second quarter


•	Return on average common equity Tier 1 (CET1) was 10.5%, up from 9.9% in the second quarter


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


•	Capital ratios remain strong with a CET1 ratio of 9.3% at quarter end, compared to 9.2% at prior quarter end

THIRD QUARTER RESULTS

Loans

Third quarter average loans of $20.1 billion increased $411 million, or 2% from the second quarter, and have increased $1.6 billion, or 9% from the year ago quarter.

With respect to third quarter average balances,


•	Commercial real estate lending grew $202 million, or 4% from the second quarter to $4.9 billion. Commercial real estate lending has increased $595 million, or 14% from the year ago quarter.


•	Consumer lending grew $106 million, net of $239 million of portfolio loan sales, or 1% from the second quarter to $7.6 billion, and has increased $517 million, or 7% from the year ago quarter.


•	Commercial and business lending grew $103 million, or 1% from the second quarter to $7.6 billion, with growth driven by mortgage warehouse and power and utilities. Commercial and business lending has increased $488 million, or 7% from the year ago quarter.

Deposits

Third quarter average deposits of $21.4 billion increased $1.1 billion, or 5% from the second quarter, and have increased $1.1 billion, or 5% from the year ago quarter.

With respect to third quarter average balances,


•	Interest-bearing demand deposits grew $511 million, or 14% from the second quarter to $4.2 billion, and have grown $952 million, or 30% from the year ago quarter.


•	Noninterest-bearing demand deposits grew $192 million, or 4% from the second quarter to $5.2 billion, and have grown $588 million, or 13% from the year ago quarter.


•	Savings and time deposits increased modestly from the second quarter. Savings deposits have grown $91 million, or 7% from the year ago quarter. Time deposits have decreased $71 million, or 4% from the year ago quarter.


•	Money market deposits grew $396 million, or 5% from the second quarter to $9.1 billion, but have decreased $449 million, or 5% from the year ago quarter as we continue to optimize our funding costs.

Net Interest Income and Net Interest Margin

Third quarter net interest income of $179 million was up $2 million, or 1% from the second quarter, and was up $8 million, or 5% from the year ago quarter. Third quarter net interest margin of 2.77% was 5 basis points lower than the year ago quarter.


•	Interest and fees on loans increased $4 million, or 3% from the second quarter. The total loan yield of 3.35% was unchanged from the second quarter.


•	Interest expense on deposits increased $1 million, or 12% from the second quarter. Total deposits costs, including the benefit of free funds, were essentially unchanged from the second quarter.


•	The yields on investment securities declined from the second quarter, and accounted for the majority of the margin compression.

Noninterest Income

Third quarter total noninterest income of $95 million was up $13 million, or 16% from the second quarter, and was up $15 million, or 19% from the year ago quarter.


•	Mortgage banking income increased $14 million to $18 million for the quarter. The Company benefitted from higher volumes of mortgage loans originated for sale during the quarter, and recorded a $2 million positive fair value mark on its loan pipeline at quarter end. Portfolio loan sales generated $9 million of gross gains during the quarter.


•	Capital market fees increased $3 million to $7 million for the quarter on higher derivative and syndication activity.


•	Fee-based revenue decreased $2 million from the second quarter due to seasonally lower insurance commissions. All other fee-based revenue categories were higher in the third quarter, including service charges on deposit accounts, trust service fees, card-based and other nondeposit fees, and brokerage and annuity commissions.


•	All other noninterest income categories, collectively, decreased $2 million from the second quarter, primarily attributable to lower investment securities gains. The Company did not engage in further restructuring of its investment portfolio during the third quarter.

Noninterest Expense

Third quarter total noninterest expense of $175 million was up $1 million, or 1% from the second quarter, and was up $4 million, or 2% from the year ago quarter.


•	Personnel expense increased $2 million from the second quarter and included $1 million of severance.


•	Occupancy expense increased from the second quarter, due to a $2 million lease termination charge related to planned consolidation of office space in Chicago.


•	All other noninterest expense categories, collectively, decreased $3 million from the prior quarter primarily related to lower business development and advertising expense.

Taxes

Third quarter income tax expense was $24 million with an effective tax rate of 31%, compared to $21 million and 30% in the second quarter, and $22 million and 30% in the year ago quarter.

Credit

The provision for credit losses was $21 million in the third quarter, up $7 million from the prior quarter, with the increase primarily attributable to the Company’s oil and gas portfolio.


•	Nonaccrual loans of $290 million were up $7 million from the second quarter. The nonaccrual loans to total loans ratio was 1.46% in the third quarter, compared to 1.43% in the prior quarter.


•	Net charge offs of $18 million were down $2 million from the second quarter. Net charge offs in the third quarter were primarily attributable to oil and gas related charge offs of $22 million, which were partially offset by recoveries in the commercial portfolio.


•	Potential problem loans of $441 million were down $16 million from the second quarter.


•	The allowance for loan losses of $270 million was up $2 million from the second quarter. The allowance for loan losses to total loans was 1.36% in the third quarter, compared to 1.35% in the second quarter.


•	The allowance related to the oil and gas portfolio was $38 million, compared to $42 million at June 30, 2016, and $29 million at September 30, 2015. The allowance on this portfolio reflects year to date net charge offs of $53 million. The allowance represented 5.5% of total oil and gas loans at September 30, 2016, compared to 5.6% at June 30, 2016, and 3.8% at September 30, 2015.

Capital

The Company’s capital position remains strong, with a common equity Tier 1 ratio of 9.3% at September 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.

THIRD 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, October 20, 2016. Interested parties can access the live webcast of the call through the Investor Relations section of the Company's website, http://investor.associatedbank.com. Parties may also dial into the call at 877-407-8037 (domestic) or 201-689-8037 (international) and request the Associated Banc-Corp third quarter 2016 earnings call. The third quarter 2016 financial tables and an accompanying slide presentation will be available on the Company's website just prior to the 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)	Sep 30, 2016			Jun 30, 2016			Seql Qtr $ Change			Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Comp Qtr $ Change
Assets
Cash and due from banks	$	356,047		$	333,000		$	23,047		$	287,183		$	374,921		$	303,701		$	52,346
Interest-bearing deposits in other financial institutions	240,010			131,680			108,330			68,025			79,764			70,023			169,987
Federal funds sold and securities purchased under agreements to resell	14,250			13,200			1,050			20,200			19,000			36,490			(22,240		)
Investment securities held to maturity, at amortized cost	1,253,494			1,236,140			17,354			1,176,821			1,168,230			604,799			648,695
Investment securities available for sale, at fair value	4,846,088			4,801,766			44,322			4,905,841			4,967,414			5,403,656			(557,568		)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	140,215			194,501			(54,286		)	181,853			147,240			160,871			(20,656		)
Loans held for sale	230,795			284,376			(53,581		)	128,339			124,915			105,144			125,651
Loans	19,844,005			19,815,286			28,719			19,227,240			18,714,343			18,524,773			1,319,232
Allowance for loan losses	(269,540		)	(267,780		)	(1,760		)	(277,370		)	(274,264		)	(262,536		)	(7,004		)
Loans, net	19,574,465			19,547,506			26,959			18,949,870			18,440,079			18,262,237			1,312,228
Premises and equipment, net	329,726			331,427			(1,701		)	331,711			267,606			271,119			58,607
Goodwill	971,951			971,951			—			971,951			968,844			968,844			3,107
Mortgage servicing rights, net	58,414			57,474			940			59,414			61,341			61,402			(2,988		)
Other intangible assets, net	15,902			16,427			(525		)	16,966			16,458			16,978			(1,076		)
Trading assets	60,780			77,112			(16,332		)	53,087			32,192			43,752			17,028
Other assets	1,060,627			1,042,139			18,488			1,027,606			1,043,831			1,154,750			(94,123		)
Total assets	$	29,152,764		$	29,038,699		$	114,065		$	28,178,867		$	27,711,835		$	27,463,766		$	1,688,998
Liabilities and Stockholders’ Equity
Noninterest-bearing demand deposits	$	5,337,677		$	5,039,336		$	298,341		$	5,272,685		$	5,562,466		$	4,657,261		$	680,416
Interest-bearing deposits	16,410,035			15,253,514			1,156,521			15,412,775			15,445,199			15,901,134			508,901
Total deposits	21,747,712			20,292,850			1,454,862			20,685,460			21,007,665			20,558,395			1,189,317
Federal funds purchased and securities sold under agreements to repurchase	698,772			509,150			189,622			583,247			431,438			702,569			(3,797		)
Other short-term funding	541,321			1,402,407			(861,086		)	834,161			402,978			319,766			221,555
Long-term funding	2,761,635			3,511,475			(749,840		)	2,861,316			2,676,164			2,676,065			85,570
Trading liabilities	62,301			79,466			(17,165		)	55,223			33,430			45,817			16,484
Accrued expenses and other liabilities	243,908			213,204			30,704			176,962			222,914			207,357			36,551
Total liabilities	26,055,649			26,008,552			47,097			25,196,369			24,774,589			24,509,969			1,545,680
Stockholders’ Equity
Preferred equity	159,929			120,201			39,728			120,347			121,379			121,379			38,550
Common equity:
Common stock	1,630			1,630			—			1,630			1,642			1,642			(12		)
Surplus	1,459,161			1,453,285			5,876			1,447,368			1,458,522			1,455,034			4,127
Retained earnings	1,662,778			1,629,915			32,863			1,599,835			1,593,239			1,570,199			92,579
Accumulated other comprehensive income (loss)	(1,254		)	13,453			(14,707		)	2,167			(32,616		)	15,376			(16,630		)
Treasury stock, at cost	(185,129		)	(188,337		)	3,208			(188,849		)	(204,920		)	(209,833		)	24,704
Total common equity	2,937,186			2,909,946			27,240			2,862,151			2,815,867			2,832,418			104,768
Total stockholders’ equity	3,097,115			3,030,147			66,968			2,982,498			2,937,246			2,953,797			143,318
Total liabilities and stockholders’ equity	$	29,152,764		$	29,038,699		$	114,065		$	28,178,867		$	27,711,835		$	27,463,766		$	1,688,998

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Associated Banc-Corp Consolidated Statements of Income (Unaudited)

						Comp Qtr					YTD			YTD		Comp YTD
(in thousands, except per share data)	3Q16			3Q15		$ Change			% Change		Sep 2016			Sep 2015		$ Change			% Change
Interest Income
Interest and fees on loans	$	167,350		$	155,663	$	11,687		8	%	$	490,065		$	460,025	$	30,040		7	%
Interest and dividends on investment securities:
Taxable	22,948			24,937		(1,989		)	(8	)%	72,734			73,897		(1,163		)	(2	)%
Tax-exempt	8,141			7,917		224			3	%	23,865			23,369		496			2	%
Other interest	1,064			1,489		(425		)	(29	)%	3,449			4,952		(1,503		)	(30	)%
Total interest income	199,503			190,006		9,497			5	%	590,113			562,243		27,870			5	%
Interest Expense
Interest on deposits	13,118			8,521		4,597			54	%	36,562			24,281		12,281			51	%
Interest on Federal funds purchased and securities sold under agreements to repurchase	326			248		78			31	%	1,000			714		286			40	%
Interest on other short-term funding	296			83		213			257	%	1,656			279		1,377			494	%
Interest on long-term funding	7,229			10,645		(3,416		)	(32	)%	23,657			32,159		(8,502		)	(26	)%
Total interest expense	20,969			19,497		1,472			8	%	62,875			57,433		5,442			9	%
Net Interest Income	178,534			170,509		8,025			5	%	527,238			504,810		22,428			4	%
Provision for credit losses	21,000			8,000		13,000			163	%	55,000			17,500		37,500			214	%
Net interest income after provision for credit losses	157,534			162,509		(4,975		)	(3	)%	472,238			487,310		(15,072		)	(3	)%
Noninterest Income
Trust service fees	11,700			12,273		(573		)	(5	)%	34,656			36,875		(2,219		)	(6	)%
Service charges on deposit accounts	17,445			17,385		60			—	%	50,162			48,894		1,268			3	%
Card-based and other nondeposit fees	12,777			12,618		159			1	%	37,485			38,631		(1,146		)	(3	)%
Insurance commissions	19,431			17,561		1,870			11	%	62,818			57,366		5,452			10	%
Brokerage and annuity commissions	4,155			3,809		346			9	%	12,047			11,684		363			3	%
Mortgage banking, net	18,291			6,643		11,648			175	%	26,562			23,992		2,570			11	%
Capital market fees, net	7,012			2,170		4,842			223	%	14,343			7,329		7,014			96	%
Bank owned life insurance income	3,290			2,448		842			34	%	11,033			7,704		3,329			43	%
Asset gains (losses), net	(1,034		)	244		(1,278		)	(524	)%	(853		)	2,931		(3,784		)	(129	)%
Investment securities gains (losses), net	(13		)	2,796		(2,809		)	(100	)%	6,201			4,038		2,163			54	%
Other	2,180			2,118		62			3	%	6,140			6,916		(776		)	(11	)%
Total noninterest income	95,234			80,065		15,169			19	%	260,594			246,360		14,234			6	%
Noninterest Expense
Personnel expense	103,819			101,134		2,685			3	%	307,346			304,272		3,074			1	%
Occupancy	15,362			14,187		1,175			8	%	42,379			46,178		(3,799		)	(8	)%
Equipment	5,319			6,003		(684		)	(11	)%	16,161			17,514		(1,353		)	(8	)%
Technology	14,173			14,748		(575		)	(4	)%	42,887			46,660		(3,773		)	(8	)%
Business development and advertising	5,251			5,964		(713		)	(12	)%	20,053			18,120		1,933			11	%
Other intangible amortization	525			885		(360		)	(41	)%	1,568			2,574		(1,006		)	(39	)%
Loan expense	3,535			3,305		230			7	%	10,198			9,982		216			2	%
Legal and professional fees	4,804			4,207		597			14	%	14,685			13,089		1,596			12	%
Foreclosure / OREO expense, net	960			645		315			49	%	4,167			3,071		1,096			36	%
FDIC expense	9,000			6,000		3,000			50	%	25,500			18,500		7,000			38	%
Other	12,566			14,507		(1,941		)	(13	)%	38,701			42,394		(3,693		)	(9	)%
Total noninterest expense	175,314			171,585		3,729			2	%	523,645			522,354		1,291			—	%
Income before income taxes	77,454			70,989		6,465			9	%	209,187			211,316		(2,129		)	(1	)%
Income tax expense	23,638			21,551		2,087			10	%	63,746			65,806		(2,060		)	(3	)%
Net income	53,816			49,438		4,378			9	%	145,441			145,510		(69		)	—	%
Preferred stock dividends	2,188			2,184		4			—	%	6,555			4,957		1,598			32	%
Net income available to common equity	$	51,628		$	47,254	$	4,374		9	%	$	138,886		$	140,553	$	(1,667	)	(1	)%
Earnings Per Common Share:
Basic	$	0.34		$	0.31	$	0.03		10	%	$	0.92		$	0.93	$	(0.01	)	(1	)%
Diluted	$	0.34		$	0.31	$	0.03		10	%	$	0.92		$	0.92	$	—		—	%
Average Common Shares Outstanding:
Basic	148,708			148,614		94			—	%	148,607			149,524		(917		)	(1	)%
Diluted	149,973			149,799		174			—	%	149,645			150,704		(1,059		)	(1	)%

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Associated Banc-Corp Consolidated Statements of Income (Unaudited)—Quarterly Trend
							Seql Qtr												Comp Qtr
(in thousands, except per share data)	3Q16			2Q16			$ Change			% Change		1Q16		4Q15			3Q15		$ Change			% Change
Interest Income
Interest and fees on loans	$	167,350		$	163,059		$	4,291		3	%	$	159,656	$	155,602		$	155,663	$	11,687		8	%
Interest and dividends on investment securities:
Taxable	22,948			24,270			(1,322		)	(5	)%	25,516		26,395			24,937		(1,989		)	(8	)%
Tax-exempt	8,141			7,894			247			3	%	7,830		7,783			7,917		224			3	%
Other interest	1,064			1,318			(254		)	(19	)%	1,067		1,639			1,489		(425		)	(29	)%
Total interest income	199,503			196,541			2,962			2	%	194,069		191,419			190,006		9,497			5	%
Interest Expense
Interest on deposits	13,118			11,678			1,440			12	%	11,766		8,844			8,521		4,597			54	%
Interest on Federal funds purchased and securities sold under agreements to repurchase	326			378			(52		)	(14	)%	296		229			248		78			31	%
Interest on other short-term funding	296			845			(549		)	(65	)%	515		186			83		213			257	%
Interest on long-term funding	7,229			6,923			306			4	%	9,505		10,692			10,645		(3,416		)	(32	)%
Total interest expense	20,969			19,824			1,145			6	%	22,082		19,951			19,497		1,472			8	%
Net Interest Income	178,534			176,717			1,817			1	%	171,987		171,468			170,509		8,025			5	%
Provision for credit losses	21,000			14,000			7,000			50	%	20,000		20,000			8,000		13,000			163	%
Net interest income after provision for credit losses	157,534			162,717			(5,183		)	(3	)%	151,987		151,468			162,509		(4,975		)	(3	)%
Noninterest Income
Trust service fees	11,700			11,509			191			2	%	11,447		11,965			12,273		(573		)	(5	)%
Service charges on deposit accounts	17,445			16,444			1,001			6	%	16,273		16,577			17,385		60			—	%
Card-based and other nondeposit fees	12,777			12,717			60			—	%	11,991		12,694			12,618		159			1	%
Insurance commissions	19,431			22,005			(2,574		)	(12	)%	21,382		17,997			17,561		1,870			11	%
Brokerage and annuity commissions	4,155			4,098			57			1	%	3,794		3,694			3,809		346			9	%
Mortgage banking, net	18,291			4,067			14,224			350	%	4,204		8,271			6,643		11,648			175	%
Capital market fees, net	7,012			3,793			3,219			85	%	3,538		3,423			2,170		4,842			223	%
Bank owned life insurance income	3,290			2,973			317			11	%	4,770		2,092			2,448		842			34	%
Asset gains (losses), net	(1,034		)	(343		)	(691		)	201	%	524		(391		)	244		(1,278		)	(524	)%
Investment securities gains (losses), net	(13		)	3,116			(3,129		)	(100	)%	3,098		4,095			2,796		(2,809		)	(100	)%
Other	2,180			1,789			391			22	%	2,171		2,580			2,118		62			3	%
Total noninterest income	95,234			82,168			13,066			16	%	83,192		82,997			80,065		15,169			19	%
Noninterest Expense
Personnel expense	103,819			102,129			1,690			2	%	101,398		100,469			101,134		2,685			3	%
Occupancy	15,362			13,215			2,147			16	%	13,802		14,718			14,187		1,175			8	%
Equipment	5,319			5,396			(77		)	(1	)%	5,446		5,695			6,003		(684		)	(11	)%
Technology	14,173			14,450			(277		)	(2	)%	14,264		13,953			14,748		(575		)	(4	)%
Business development and advertising	5,251			6,591			(1,340		)	(20	)%	8,211		7,652			5,964		(713		)	(12	)%
Other intangible amortization	525			539			(14		)	(3	)%	504		520			885		(360		)	(41	)%
Loan expense	3,535			3,442			93			3	%	3,221		4,120			3,305		230			7	%
Legal and professional fees	4,804			4,856			(52		)	(1	)%	5,025		3,963			4,207		597			14	%
Foreclosure / OREO expense, net	960			1,330			(370		)	(28	)%	1,877		2,371			645		315			49	%
FDIC expense	9,000			8,750			250			3	%	7,750		7,500			6,000		3,000			50	%
Other	12,566			13,662			(1,096		)	(8	)%	12,473		15,032			14,507		(1,941		)	(13	)%
Total noninterest expense	175,314			174,360			954			1	%	173,971		175,993			171,585		3,729			2	%
Income before income taxes	77,454			70,525			6,929			10	%	61,208		58,472			70,989		6,465			9	%
Income tax expense	23,638			21,434			2,204			10	%	18,674		15,681			21,551		2,087			10	%
Net income	53,816			49,091			4,725			10	%	42,534		42,791			49,438		4,378			9	%
Preferred stock dividends	2,188			2,169			19			1	%	2,198		2,198			2,184		4			—	%
Net income available to common equity	$	51,628		$	46,922		$	4,706		10	%	$	40,336	$	40,593		$	47,254	$	4,374		9	%
Earnings Per Common Share:
Basic	$	0.34		$	0.31		$	0.03		10	%	$	0.27	$	0.27		$	0.31	$	0.03		10	%
Diluted	$	0.34		$	0.31		$	0.03		10	%	$	0.27	$	0.27		$	0.31	$	0.03		10	%
Average Common Shares Outstanding:
Basic	148,708			148,511			197			—	%	148,601		148,834			148,614		94			—	%
Diluted	149,973			149,530			443			—	%	149,454		150,163			149,799		174			—	%

Page 3



Associated Banc-Corp Selected Quarterly Information
($ in millions, except share and per share, full time equivalent employee data and branch count)	YTD Sep 2016			YTD Sep 2015			3Q16			2Q16			1Q16			4Q15			3Q15
Per Common Share Data
Dividends	$	0.33		$	0.30		$	0.11		$	0.11		$	0.11		$	0.11		$	0.10
Market value:
High	19.91			20.84			19.91			18.84			18.79			20.61			20.55
Low	15.48			16.62			16.49			15.84			15.48			17.98			17.17
Close	19.59			17.97			19.59			17.15			17.94			18.75			17.97
Book value	19.42			18.77			19.42			19.27			18.96			18.62			18.77
Tangible book value / share	$	12.89		$	12.23		$	12.89		$	12.72		$	12.41		$	12.10		$	12.23
Performance Ratios (annualized)
Return on average assets	0.68		%	0.72		%	0.74		%	0.69		%	0.62		%	0.62		%	0.72		%
Effective tax rate	30.47		%	31.14		%	30.52		%	30.39		%	30.51		%	26.82		%	30.36		%
Dividend payout ratio⁽¹⁾	35.87		%	32.26		%	32.35		%	35.48		%	40.74		%	40.74		%	32.26		%
Selected Trend Information
Average full time equivalent employees	4,422			4,436			4,477			4,415			4,374			4,378			4,421
Branch count							217			215			215			215			225
Trust assets under management, at market value							$	8,179		$	7,944		$	7,844		$	7,729		$	7,626
Mortgage loans originated for sale during period	$	984		$	911		$	466		$	324		$	194		$	317		$	292
Mortgage portfolio serviced for others							$	8,011		$	7,776		$	7,877		$	7,915		$	7,907
Mortgage servicing rights, net / mortgage portfolio serviced for others							0.73		%	0.74		%	0.75		%	0.77		%	0.78		%
Shares outstanding, end of period							151,243			151,036			150,994			151,239			150,928
Selected Quarterly Ratios
Loans / deposits							91.25		%	97.65		%	92.95		%	89.08		%	90.11		%
Stockholders’ equity / assets							10.62		%	10.43		%	10.58		%	10.60		%	10.76		%
Risk-based Capital ^{(2) (3)}
Total risk-weighted assets							$	21,268		$	21,168		$	20,454		$	19,930		$	19,866
Common equity Tier 1							$	1,984		$	1,941		$	1,903		$	1,898		$	1,865
Common equity Tier 1 capital ratio							9.33		%	9.17		%	9.30		%	9.52		%	9.39		%
Tier 1 capital ratio							10.08		%	9.73		%	9.88		%	10.12		%	9.98		%
Total capital ratio							12.50		%	12.16		%	12.35		%	12.62		%	12.49		%
Tier 1 leverage ratio							7.66		%	7.43		%	7.55		%	7.60		%	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)	September 30, 2016 data is estimated.

Page 4



Associated Banc-Corp Selected Asset Quality Information
(in thousands)	Sep 30, 2016			Jun 30, 2016			Seql Qtr % Change		Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Comp Qtr % Change
Allowance for Loan Losses
Balance at beginning of period	$	267,780		$	277,370		(3	)%	$	274,264		$	262,536		$	261,538		2	%
Provision for loan losses	20,000			11,000			82	%	20,000			19,500			9,000			122	%
Charge offs	(28,964		)	(24,621		)	18	%	(21,245		)	(12,741		)	(11,732		)	147	%
Recoveries	10,724			4,031			166	%	4,351			4,969			3,730			188	%
Net charge offs	(18,240		)	(20,590		)	(11	)%	(16,894		)	(7,772		)	(8,002		)	128	%
Balance at end of period	$	269,540		$	267,780		1	%	$	277,370		$	274,264		$	262,536		3	%
Allowance for Unfunded Commitments
Balance at beginning of period	$	27,400		$	24,400		12	%	$	24,400		$	23,900		$	24,900		10	%
Provision for unfunded commitments	1,000			3,000			(67	)%	—			500			(1,000		)	(200	)%
Balance at end of period	$	28,400		$	27,400		4	%	$	24,400		$	24,400		$	23,900		19	%
Allowance for credit losses	$	297,940		$	295,180		1	%	$	301,770		$	298,664		$	286,436		4	%
Provision for credit losses	$	21,000		$	14,000		50	%	$	20,000		$	20,000		$	8,000		163	%
Net Charge Offs	Sep 30, 2016			Jun 30, 2016			Seql Qtr % Change		Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Comp Qtr % Change
Commercial and industrial	$	(16,407	)	$	(18,564	)	(12	)%	$	(14,936	)	$	(4,586	)	$	(4,709	)	248	%
Commercial real estate—owner occupied	(154		)	(20		)	670	%	(43		)	(291		)	504			(131	)%
Commercial and business lending	(16,561		)	(18,584		)	(11	)%	(14,979		)	(4,877		)	(4,205		)	294	%
Commercial real estate—investor	(564		)	(560		)	1	%	1,239			(665		)	(496		)	14	%
Real estate construction	(22		)	(219		)	(90	)%	(28		)	140			(38		)	(42	)%
Commercial real estate lending	(586		)	(779		)	(25	)%	1,211			(525		)	(534		)	10	%
Total commercial	(17,147		)	(19,363		)	(11	)%	(13,768		)	(5,402		)	(4,739		)	262	%
Residential mortgage	(540		)	(757		)	(29	)%	(1,232		)	(714		)	(1,562		)	(65	)%
Home equity revolving lines of credit	36			275			(87	)%	(902		)	(294		)	(533		)	(107	)%
Home equity loans junior liens	89			42			112	%	(244		)	(623		)	(358		)	(125	)%
Home equity	125			317			(61	)%	(1,146		)	(917		)	(891		)	(114	)%
Other consumer	(678		)	(787		)	(14	)%	(748		)	(739		)	(810		)	(16	)%
Total consumer	(1,093		)	(1,227		)	(11	)%	(3,126		)	(2,370		)	(3,263		)	(67	)%
Total net charge offs	$	(18,240	)	$	(20,590	)	(11	)%	$	(16,894	)	$	(7,772	)	$	(8,002	)	128	%
Net Charge Offs to Average Loans (in basis points) *	Sep 30, 2016			Jun 30, 2016					Mar 31, 2016			Dec 31, 2015			Sep 30, 2015
Commercial and industrial	(98		)	(114		)			(97		)	(31		)	(31		)
Commercial real estate—owner occupied	(7		)	(1		)			(2		)	(12		)	21
Commercial and business lending	(87		)	(100		)			(85		)	(28		)	(24		)
Commercial real estate—investor	(6		)	(7		)			15			(8		)	(6		)
Real estate construction	(1		)	(7		)			(1		)	5			(1		)
Commercial real estate lending	(5		)	(7		)			11			(5		)	(5		)
Total commercial	(55		)	(64		)			(48		)	(19		)	(17		)
Residential mortgage	(3		)	(5		)			(8		)	(5		)	(11		)
Home equity revolving lines of credit	2			13					(41		)	(13		)	(24		)
Home equity loans junior liens	34			15					(83		)	(195		)	(104		)
Home equity	5			13					(46		)	(36		)	(35		)
Other consumer	(67		)	(78		)			(72		)	(69		)	(75		)
Total consumer	(6		)	(7		)			(17		)	(13		)	(18		)
Total net charge offs	(36		)	(42		)			(36		)	(17		)	(17		)
Credit Quality	Sep 30, 2016			Jun 30, 2016			Seql Qtr % Change		Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Comp Qtr % Change
Nonaccrual loans	$	289,911		$	282,602		3	%	$	286,395		$	178,258		$	147,454		97	%
Other real estate owned (OREO)	14,499			13,669			6	%	16,056			14,569			13,740			6	%
Total nonperforming assets	$	304,410		$	296,271		3	%	$	302,451		$	192,827		$	161,194		89	%
Loans 90 or more days past due and still accruing	$	1,511		$	1,494		1	%	$	1,629		$	1,648		$	1,484		2	%
Allowance for loan losses to loans	1.36		%	1.35		%			1.44		%	1.47		%	1.42		%
Allowance for loan losses to nonaccrual loans	92.97		%	94.76		%			96.85		%	153.86		%	178.05		%
Nonaccrual loans to total loans	1.46		%	1.43		%			1.49		%	0.95		%	0.80		%
Nonperforming assets to total loans plus OREO	1.53		%	1.49		%			1.57		%	1.03		%	0.87		%
Nonperforming assets to total assets	1.04		%	1.02		%			1.07		%	0.70		%	0.59		%
Year-to-date net charge offs to average loans *	0.38		%	0.39		%			0.36		%	0.16		%	0.16		%
* Annualized

Page 5



Associated Banc-Corp Selected Asset Quality Information (continued)
(in thousands)	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Nonaccrual loans
Commercial and industrial	$	205,902	$	193,439	6	%	$	197,115	$	93,575	$	60,184	242	%
Commercial real estate—owner occupied	6,995		9,635		(27	)%	9,443		8,049		13,368		(48	)%
Commercial and business lending	212,897		203,074		5	%	206,558		101,624		73,552		189	%
Commercial real estate—investor	8,028		11,528		(30	)%	12,330		8,643		6,921		16	%
Real estate construction	864		957		(10	)%	840		940		997		(13	)%
Commercial real estate lending	8,892		12,485		(29	)%	13,170		9,583		7,918		12	%
Total commercial	221,789		215,559		3	%	219,728		111,207		81,470		172	%
Residential mortgage	53,475		52,300		2	%	52,212		51,482		51,957		3	%
Home equity revolving lines of credit	9,462		8,797		8	%	8,822		9,917		8,060		17	%
Home equity loans junior liens	4,885		5,566		(12	)%	5,250		5,327		5,581		(12	)%
Home equity	14,347		14,363		—	%	14,072		15,244		13,641		5	%
Other consumer	300		380		(21	)%	383		325		386		(22	)%
Total consumer	68,122		67,043		2	%	66,667		67,051		65,984		3	%
Total nonaccrual loans	$	289,911	$	282,602	3	%	$	286,395	$	178,258	$	147,454	97	%

Restructured loans (accruing)	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Commercial and industrial	$	30,248	$	29,179	4	%	$	28,908	$	29,293	$	28,598	6	%
Commercial real estate—owner occupied	7,445		7,509		(1	)%	7,693		7,877		7,343		1	%
Commercial and business lending	37,693		36,688		3	%	36,601		37,170		35,941		5	%
Commercial real estate—investor	15,352		20,191		(24	)%	20,993		21,915		18,580		(17	)%
Real estate construction	365		372		(2	)%	386		510		485		(25	)%
Commercial real estate lending	15,717		20,563		(24	)%	21,379		22,425		19,065		(18	)%
Total commercial	53,410		57,251		(7	)%	57,980		59,595		55,006		(3	)%
Residential mortgage	18,049		18,314		(1	)%	19,807		19,870		20,054		(10	)%
Home equity revolving lines of credit	585		576		2	%	1,377		1,332		1,121		(48	)%
Home equity loans junior liens	7,100		6,379		11	%	5,540		5,737		5,824		22	%
Home equity	7,685		6,955		10	%	6,917		7,069		6,945		11	%
Other consumer	926		906		2	%	893		829		804		15	%
Total consumer	26,660		26,175		2	%	27,617		27,768		27,803		(4	)%
Total restructured loans (accruing)	$	80,070	$	83,426	(4	)%	$	85,597	$	87,363	$	82,809	(3	)%
Restructured loans included in nonaccrual loans (not included with restructed loans (accruing))	$	31,758	$	34,841	(9	)%	$	35,232	$	37,684	$	36,583	(13	)%

Accruing Loans 30-89 Days Past Due	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Commercial and industrial	$	950	$	2,124	(55	)%	$	2,901	$	1,011	$	3,296	(71	)%
Commercial real estate—owner occupied	869		193		350	%	520		7,142		2,018		(57	)%
Commercial and business lending	1,819		2,317		(21	)%	3,421		8,153		5,314		(66	)%
Commercial real estate—investor	630		2,715		(77	)%	1,072		291		1,218		(48	)%
Real estate construction	402		524		(23	)%	415		296		373		8	%
Commercial real estate lending	1,032		3,239		(68	)%	1,487		587		1,591		(35	)%
Total commercial	2,851		5,556		(49	)%	4,908		8,740		6,905		(59	)%
Residential mortgage	6,697		7,382		(9	)%	3,594		4,930		4,811		39	%
Home equity revolving lines of credit	4,137		6,075		(32	)%	3,582		5,559		6,142		(33	)%
Home equity loans junior liens	1,336		1,655		(19	)%	2,222		2,360		2,423		(45	)%
Home equity	5,473		7,730		(29	)%	5,804		7,919		8,565		(36	)%
Other consumer	2,046		1,895		8	%	1,682		1,870		1,723		19	%
Total consumer	14,216		17,007		(16	)%	11,080		14,719		15,099		(6	)%
Total accruing loans 30-89 days past due	$	17,067	$	22,563	(24	)%	$	15,988	$	23,459	$	22,004	(22	)%

Potential Problem Loans	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Commercial and industrial	$	351,290	$	379,818	(8	)%	$	328,464	$	233,130	$	192,174	83	%
Commercial real estate—owner occupied	47,387		45,671		4	%	41,107		35,706		41,466		14	%
Commercial and business lending	398,677		425,489		(6	)%	369,571		268,836		233,640		71	%
Commercial real estate—investor	36,765		25,081		47	%	25,385		25,944		23,633		56	%
Real estate construction	1,929		2,117		(9	)%	2,422		3,919		2,354		(18	)%
Commercial real estate lending	38,694		27,198		42	%	27,807		29,863		25,987		49	%
Total commercial	437,371		452,687		(3	)%	397,378		298,699		259,627		68	%
Residential mortgage	3,226		3,953		(18	)%	3,488		2,796		3,966		(19	)%
Home equity revolving lines of credit	46		62		(26	)%	48		48		141		(67	)%
Home equity loans junior liens	32		32		—	%	161		174		86		(63	)%
Home equity	78		94		(17	)%	209		222		227		(66	)%
Total consumer	3,304		4,047		(18	)%	3,697		3,018		4,193		(21	)%
Total potential problem loans	$	440,675	$	456,734	(4	)%	$	401,075	$	301,717	$	263,820	67	%

Page 6



Associated Banc-Corp Net Interest Income Analysis—Fully Tax-Equivalent Basis — Sequential and Comparable Quarter
	Quarter ended,
	September 30, 2016						June 30, 2016						September 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	$	7,577,470	$	61,147	3.21	%	$	7,474,633	$	59,052	3.18	%	$	7,089,664	$	55,944	3.13	%
Commercial real estate lending	4,855,827		41,600		3.41	%	4,654,111		40,169		3.47	%	4,260,329		36,694		3.42	%
Total commercial	12,433,297		102,747		3.29	%	12,128,744		99,221		3.29	%	11,349,993		92,638		3.24	%
Residential mortgage	6,255,264		49,254		3.15	%	6,129,924		48,382		3.16	%	5,658,253		47,004		3.32	%
Retail	1,364,215		16,283		4.77	%	1,383,317		16,414		4.75	%	1,444,503		16,913		4.67	%
Total loans	20,052,776		168,284		3.35	%	19,641,985		164,017		3.35	%	18,452,749		156,555		3.38	%
Investment securities:
Taxable	4,859,750		22,948		1.89	%	4,967,437		24,270		1.95	%	4,968,609		24,937		2.01	%
Tax-exempt⁽¹⁾	1,119,873		12,456		4.45	%	1,064,252		12,077		4.54	%	997,489		12,112		4.86	%
Other short-term investments	401,764		1,064		1.06	%	294,375		1,318		1.80	%	415,496		1,489		1.43	%
Investments and other	6,381,387		36,468		2.29	%	6,326,064		37,665		2.38	%	6,381,594		38,538		2.42	%
Total earning assets	26,434,163		$	204,752	3.09	%	25,968,049		$	201,682	3.12	%	24,834,343		$	195,093	3.13	%
Other assets, net	2,534,209						2,674,427						2,442,078
Total assets	$	28,968,372					$	28,642,476					$	27,276,421
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	1,448,223	$	198	0.05	%	$	1,445,020	$	228	0.06	%	$	1,357,677	$	254	0.07	%
Interest-bearing demand	4,151,708		2,937		0.28	%	3,640,733		2,144		0.24	%	3,199,391		962		0.12	%
Money market	9,088,943		6,956		0.30	%	8,692,782		6,309		0.29	%	9,538,030		4,350		0.18	%
Time deposits	1,553,349		3,027		0.78	%	1,540,424		2,997		0.78	%	1,624,661		2,955		0.72	%
Total interest-bearing deposits	16,242,223		13,118		0.32	%	15,318,959		11,678		0.31	%	15,719,759		8,521		0.22	%
Federal funds purchased and securities sold under agreements to repurchase	655,825		326		0.20	%	674,360		378		0.23	%	649,891		248		0.15	%
Other short-term funding	324,623		296		0.36	%	1,209,511		845		0.28	%	154,811		83		0.21	%
Total short-term funding	980,448		622		0.25	%	1,883,871		1,223		0.26	%	804,702		331		0.16	%
Long-term funding	3,256,099		7,229		0.89	%	3,052,581		6,923		0.91	%	3,021,119		10,645		1.41	%
Total short and long-term funding	4,236,547		7,851		0.74	%	4,936,452		8,146		0.66	%	3,825,821		10,976		1.15	%
Total interest-bearing liabilities	20,478,770		$	20,969	0.41	%	20,255,411		$	19,824	0.39	%	19,545,580		$	19,497	0.40	%
Noninterest-bearing demand deposits	5,161,802						4,969,994						4,573,840
Other liabilities	281,442						228,027						237,725
Stockholders’ equity	3,046,358						3,189,044						2,919,276
Total liabilities and stockholders’ equity	$	28,968,372					$	28,642,476					$	27,276,421
Interest rate spread					2.68	%					2.73	%					2.73	%
Net free funds					0.09	%					0.08	%					0.09	%
Fully tax-equivalent net interest income and net interest margin			$	183,783	2.77	%			$	181,858	2.81	%			$	175,596	2.82	%
Fully tax-equivalent adjustment			5,249						5,141						5,087
Net interest income			$	178,534					$	176,717					$	170,509


(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
	Nine months ended September 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	$	7,391,735	$	177,457	3.21	%	$	7,083,736	$	168,188	3.17	%
Commercial real estate lending	4,660,538		120,758		3.46	%	4,171,250		108,785		3.49	%
Total commercial	12,052,273		298,215		3.30	%	11,254,986		276,973		3.29	%
Residential mortgage	6,102,383		145,384		3.18	%	5,435,277		134,923		3.31	%
Retail	1,386,416		49,337		4.75	%	1,464,129		50,851		4.64	%
Total loans	19,541,072		492,936		3.37	%	18,154,392		462,747		3.40	%
Investment securities:
Taxable	4,953,410		72,734		1.96	%	4,845,424		73,897		2.03	%
Tax-exempt⁽¹⁾	1,076,603		36,513		4.52	%	963,458		35,754		4.95	%
Other short-term investments	322,424		3,449		1.43	%	455,485		4,952		1.45	%
Investments and other	6,352,437		112,696		2.37	%	6,264,367		114,603		2.44	%
Total earning assets	25,893,509		$	605,632	3.12	%	24,418,759		$	577,350	3.16	%
Other assets, net	2,478,574						2,452,790
Total assets	$	28,372,083					$	26,871,549
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	1,420,398	$	662	0.06	%	$	1,329,548	$	751	0.08	%
Interest-bearing demand	3,672,705		7,113		0.26	%	3,218,089		3,049		0.13	%
Money market	9,071,388		19,709		0.29	%	9,100,867		12,223		0.18	%
Time deposits	1,550,693		9,078		0.78	%	1,616,474		8,258		0.68	%
Total interest-bearing deposits	15,715,184		36,562		0.31	%	15,264,978		24,281		0.21	%
Federal funds purchased and securities sold under agreements to repurchase	629,976		1,000		0.21	%	632,714		714		0.15	%
Other short-term funding	769,049		1,656		0.29	%	170,300		279		0.22	%
Total short-term funding	1,399,025		2,656		0.25	%	803,014		993		0.17	%
Long-term funding	2,964,807		23,657		1.06	%	3,273,898		32,159		1.31	%
Total short and long-term funding	4,363,832		26,313		0.80	%	4,076,912		33,152		1.08	%
Total interest-bearing liabilities	20,079,016		$	62,875	0.42	%	19,341,890		$	57,433	0.40	%
Noninterest-bearing demand deposits	5,043,231						4,397,894
Other liabilities	247,624						251,937
Stockholders’ equity	3,002,212						2,879,828
Total liabilities and stockholders’ equity	$	28,372,083					$	26,871,549
Interest rate spread					2.70	%					2.76	%
Net free funds					0.10	%					0.08	%
Fully tax-equivalent net interest income and net interest margin			$	542,757	2.80	%			$	519,917	2.84	%
Fully tax-equivalent adjustment			15,519						15,107
Net interest income			$	527,238					$	504,810


(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	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Commercial and industrial	$	6,721,557	$	6,701,986	—	%	$	6,511,648	$	6,190,683	$	6,128,080	10	%
Commercial real estate—owner occupied	892,678		921,736		(3	)%	917,285		918,212		966,689		(8	)%
Commercial and business lending	7,614,235		7,623,722		—	%	7,428,933		7,108,895		7,094,769		7	%
Commercial real estate—investor	3,530,370		3,495,791		1	%	3,276,733		3,234,266		3,183,352		11	%
Real estate construction	1,314,431		1,285,573		2	%	1,184,398		1,162,145		1,124,280		17	%
Commercial real estate lending	4,844,801		4,781,364		1	%	4,461,131		4,396,411		4,307,632		12	%
Total commercial	12,459,036		12,405,086		—	%	11,890,064		11,505,306		11,402,401		9	%
Residential mortgage	6,034,166		6,035,720		—	%	5,944,457		5,783,267		5,682,178		6	%
Home equity revolving lines of credit	851,382		861,311		(1	)%	867,860		883,759		883,573		(4	)%
Home equity loans junior liens	100,212		107,460		(7	)%	115,134		122,043		130,892		(23	)%
Home equity	951,594		968,771		(2	)%	982,994		1,005,802		1,014,465		(6	)%
Other consumer	399,209		405,709		(2	)%	409,725		419,968		425,729		(6	)%
Total consumer	7,384,969		7,410,200		—	%	7,337,176		7,209,037		7,122,372		4	%
Total loans	$	19,844,005	$	19,815,286	—	%	$	19,227,240	$	18,714,343	$	18,524,773	7	%

Period End Deposit and Customer Funding Composition	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Noninterest-bearing demand	$	5,337,677	$	5,039,336	6	%	$	5,272,685	$	5,562,466	$	4,657,261	15	%
Savings	1,441,187		1,451,801		(1	)%	1,426,951		1,334,420		1,346,407		7	%
Interest-bearing demand	4,548,390		3,789,138		20	%	3,698,941		3,445,000		3,416,429		33	%
Money market	8,894,357		8,448,543		5	%	8,718,841		9,102,977		9,516,503		(7	)%
Brokered CDs	44,373		46,268		(4	)%	41,440		42,443		42,689		4	%
Other time	1,481,728		1,517,764		(2	)%	1,526,602		1,520,359		1,579,106		(6	)%
Total deposits	21,747,712		20,292,850		7	%	20,685,460		21,007,665		20,558,395		6	%
Customer funding	477,607		464,880		3	%	508,262		383,568		524,630		(9	)%
Total deposits and customer funding	$	22,225,319	$	20,757,730	7	%	$	21,193,722	$	21,391,233	$	21,083,025	5	%
Network transaction deposits included above in interest-bearing demand & money market	$	3,730,513	$	3,141,214	19	%	$	3,399,054	$	3,174,911	$	3,207,867	16	%
Brokered CDs	44,373		46,268		(4	)%	41,440		42,443		42,689		4	%
Total network and brokered funding	3,774,886		3,187,482		18	%	3,440,494		3,217,354		3,250,556		16	%
Net customer deposits and funding⁽¹⁾	$	18,450,433	$	17,570,248	5	%	$	17,753,228	$	18,173,879	$	17,832,469	3	%

Quarter Average Loan Composition	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Commercial and industrial	$	6,674,688	$	6,559,613	2	%	$	6,207,458	$	5,947,939	$	6,119,552	9	%
Commercial real estate—owner occupied	902,782		915,020		(1	)%	913,603		944,223		970,112		(7	)%
Commercial and business lending	7,577,470		7,474,633		1	%	7,121,061		6,892,162		7,089,664		7	%
Commercial real estate—investor	3,532,861		3,448,741		2	%	3,298,522		3,266,008		3,134,454		13	%
Real estate construction	1,322,966		1,205,370		10	%	1,171,009		1,107,452		1,125,875		18	%
Commercial real estate lending	4,855,827		4,654,111		4	%	4,469,531		4,373,460		4,260,329		14	%
Total commercial	12,433,297		12,128,744		3	%	11,590,592		11,265,622		11,349,993		10	%
Residential mortgage	6,255,264		6,129,924		2	%	5,920,280		5,845,557		5,658,253		11	%
Home equity revolving lines of credit	857,244		863,941		(1	)%	876,820		882,599		880,660		(3	)%
Home equity loans junior liens	103,790		111,372		(7	)%	118,610		126,658		136,254		(24	)%
Home equity	961,034		975,313		(1	)%	995,430		1,009,257		1,016,914		(5	)%
Other consumer	403,181		408,004		(1	)%	416,528		422,252		427,589		(6	)%
Total consumer	7,619,479		7,513,241		1	%	7,332,238		7,277,066		7,102,756		7	%
Total loans	$	20,052,776	$	19,641,985	2	%	$	18,922,830	$	18,542,688	$	18,452,749	9	%

Quarter Average Deposit Composition	Sep 30, 2016		Jun 30, 2016		Seql Qtr % Change		Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Comp Qtr % Change
Noninterest-bearing demand	$	5,161,802	$	4,969,994	4	%	$	4,996,596	$	4,967,719	$	4,573,840	13	%
Savings	1,448,223		1,445,020		—	%	1,367,646		1,358,141		1,357,677		7	%
Interest-bearing demand	4,151,708		3,640,733		14	%	3,220,409		3,150,628		3,199,391		30	%
Money market	9,088,943		8,692,782		5	%	9,432,245		9,534,551		9,538,030		(5	)%
Time deposits	1,553,349		1,540,424		1	%	1,558,278		1,604,864		1,624,661		(4	)%
Total deposits	$	21,404,025	$	20,288,953	5	%	$	20,575,174	$	20,615,903	$	20,293,599	5	%


(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 Sep 2016			YTD Sep 2015			3Q16			2Q16			1Q16			4Q15			3Q15
Tangible Common Equity Reconciliation ⁽¹⁾
Common equity							$	2,937		$	2,910		$	2,862		$	2,816		$	2,832
Goodwill and other intangible assets, net							(988		)	(988		)	(989		)	(985		)	(986		)
Tangible common equity							$	1,949		$	1,922		$	1,873		$	1,831		$	1,846
Tangible Assets Reconciliation ⁽¹⁾
Total assets							$	29,153		$	29,039		$	28,179		$	27,712		$	27,464
Goodwill and other intangible assets, net							(988		)	(988		)	(989		)	(985		)	(986		)
Tangible assets							$	28,165		$	28,051		$	27,190		$	26,727		$	26,478
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation⁽¹⁾
Common equity	$	2,876		$	2,792		$	2,911		$	2,869		$	2,849		$	2,819		$	2,798
Goodwill and other intangible assets, net	(989		)	(981		)	(988		)	(989		)	(989		)	(985		)	(986		)
Tangible common equity	1,887			1,811			1,923			1,880			1,860			1,834			1,812
Less: Accumulated other comprehensive income / loss	1			(14		)	(3		)	1			3			4			(7		)
Less: Deferred tax assets / deferred tax liabilities, net	33			24			33			32			33			34			32
Average common equity Tier 1	$	1,921		$	1,821		$	1,953		$	1,913		$	1,896		$	1,872		$	1,837
Selected Trend Information ⁽²⁾
Fee-based revenue ⁽³⁾	$	197		$	194		$	65		$	67		$	65		$	63		$	64
Total revenue ⁽⁴⁾	$	788		$	751		$	274		$	259		$	255		$	254		$	251
Selected Equity and Performance Ratios ^{(1) (5)}
Tangible common equity / tangible assets							6.92		%	6.85		%	6.89		%	6.85		%	6.97		%
Return on average equity	6.47		%	6.76		%	7.03		%	6.19		%	5.76		%	5.77		%	6.72		%
Return on average tangible common equity	9.83		%	10.38		%	10.68		%	10.04		%	8.72		%	8.78		%	10.35		%
Return on average common equity Tier 1	9.66		%	10.32		%	10.52		%	9.86		%	8.55		%	8.60		%	10.20		%
Efficiency Ratio Reconciliation ⁽⁶⁾
Federal Reserve efficiency ratio	67.51		%	69.78		%	64.40		%	69.34		%	69.01		%	70.49		%	68.85		%
Fully tax-equivalent adjustment	(1.32		)%	(1.38		)%	(1.21		)%	(1.36		)%	(1.37		)%	(1.52		)%	(1.38		)%
Other intangible amortization	(0.20		)%	(0.34		)%	(0.19		)%	(0.21		)%	(0.20		)%	(0.21		)%	(0.36		)%
Fully tax-equivalent efficiency ratio	65.99		%	68.06		%	63.00		%	67.77		%	67.44		%	68.76		%	67.11		%


(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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