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	a3q17earningspresentatio.htm
8-K - FORM 8-K - ASSOCIATED BANC-CORP	asb09302017form8-kpressrel.htm

Exhibit 99.1



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

Associated Banc-Corp Reports Third Quarter Earnings of $0.41 per share

Earnings per share up 21% from the prior year

GREEN BAY, Wis. -- October 19, 2017 -- Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $63 million, or $0.41 per common share for the quarter ended September 30, 2017. This compares to net income available to common equity of $52 million, or $0.34 per common share for the quarter ended September 30, 2016.

“Associated continues to benefit from its strong customer deposit franchise. According to recently released FDIC 2017 Summary of Deposit data, Associated increased its deposit market share across its footprint and grew deposits by 10% in our Wisconsin market. Customer deposits and funding, excluding network deposits, increased by a net 8% from the prior year and funded all of our year-over-year growth,” said President and CEO Philip B. Flynn. “The quarter further benefited from strong credit quality dynamics, lower provision, and improving efficiency. We remain committed to delivering year-over-year mid-single digit annual average loan growth, an improving net interest margin, and expense growth of less than 1%.”

THIRD QUARTER SUMMARY (all comparisons to the year ago quarter)


•	Average loans of $20.9 billion grew $846 million, or 4%


•	Average deposits of $22.4 billion grew $1.0 billion, or 5%


•	Net interest income of $190 million increased $12 million, or 6%


•	Net interest margin of 2.84% improved 7 basis points from 2.77%


•	Provision for credit losses of $5 million was down from $21 million


•	Noninterest income of $86 million was down $9 million, reflecting lower mortgage banking income


•	Noninterest expense of $177 million increased $2 million, or 1%


•	During the quarter, the Company repurchased approximately 1.6 million shares, or $37 million, of common stock


•	Return on average common equity Tier 1 (CET1) improved to 11.7% from 10.5%


•	Total dividends per common share of $0.12 were up 9%

THIRD QUARTER FINANCIAL RESULTS

Loans

Year-to-date average loans were up 5% from the comparable period last year. Third quarter average loans of $20.9 billion were up $846 million, or 4% from the year ago quarter and were up $377 million, or 2% from the second quarter.

With respect to third quarter average balances by loan category:


•	Consumer lending increased $988 million from the year ago quarter driven by the Company's on balance sheet mortgage retention strategy and grew $371 million from the second quarter to $8.6 billion.


•	Commercial real estate lending increased $118 million from the year ago quarter driven by growth in construction lending and grew $9 million from the second quarter to $5.0 billion.


•	Commercial and business lending decreased $259 million from the year ago quarter to $7.3 billion, primarily due to lower mortgage warehouse line utilization and reduced oil and gas outstandings. This portfolio decreased $3 million from the prior quarter.

Deposits

Year-to-date average deposits were up 5% from the comparable period last year. Third quarter average deposits of $22.4 billion were up $1.0 billion, or 5% from the year ago quarter and were up $918 million, or 4% from the second quarter, reflecting seasonal patterns. The loan to deposit ratio was 94% at quarter-end. Network transaction deposits were down $1.1 billion, or 30% from the year ago quarter.

With respect to third quarter average balances by deposit category:


•	Savings and time deposits increased $732 million from the year ago quarter and increased $440 million from the second quarter to $3.7 billion, driven by seasonal inflows of public funds.


•	Money market deposits increased $279 million from the year ago quarter and increased $303 million from the second quarter to $9.4 billion.


•	Interest-bearing demand deposits increased $196 million from the year ago quarter and increased $75 million from the second quarter to $4.3 billion.


•	Noninterest-bearing demand deposits decreased $170 million from the year ago quarter, but increased $100 million from the second quarter to $5.0 billion.

Net Interest Income and Net Interest Margin

Net interest income of $190 million was up $12 million, or 6% from the year ago quarter, with net interest margin increasing 7 basis points, from 2.77% to 2.84% year-over-year. Third quarter net interest income increased $6 million, or 3% from the second quarter, with net interest margin modestly expanding.


•	The average yield on total loans increased 42 basis points to 3.77% from the year ago quarter and increased 15 basis points from the prior quarter.


•	The average cost of interest-bearing deposits increased 31 basis points to 0.63% from the year ago quarter and increased 12 basis points from the prior quarter.


•	The net free funds benefit, the benefit of holding noninterest-bearing demand deposits, increased to 17 basis points from 9 basis points in the year ago quarter and increased 3 basis points from the prior quarter.

Noninterest Income

Third quarter total noninterest income of $86 million decreased $9 million from the year ago quarter, reflecting lower mortgage banking activity. Noninterest income increased $3 million from the prior quarter.

With respect to third quarter noninterest income line items:


•	Mortgage banking decreased $12 million from the year ago quarter primarily due to lower portfolio loan sales that generated $9 million during the year ago quarter. Mortgage banking increased $2 million from the second quarter as we resumed our historical practice of originating loans for sale in the secondary market.


•	Bank owned life insurance income ("BOLI") was up $3 million from the year ago and prior quarters driven by increased policy payouts.

Noninterest Expense

Third quarter total noninterest expense of $177 million was up $2 million, or 1% from the year ago quarter and up $1 million from the second quarter. The efficiency ratio continued to improve year-over-year and quarter-over-quarter.

With respect to third quarter noninterest expense line items:


•	Occupancy expense was down $3 million from the year ago quarter and down $1 million from the prior quarter, primarily driven by the benefits from ongoing internal consolidation efforts.


•	Business development and advertising increased $3 million from the year ago quarter and was up $1 million from the prior quarter driven by the Company's expanded fall advertising campaigns.

Taxes

The 2017 year-to-date effective tax rate was 28% compared to 30% in the comparable period last year, reflecting a change in accounting standards related to stock compensation and a recent favorable tax court ruling.

Credit

The third quarter provision for credit losses of $5 million was down $16 million from the year ago quarter and down $7 million from the prior quarter.


•	Potential problem loans of $259 million were down $182 million from the year ago quarter and down $4 million from the prior quarter.


•	Nonaccrual loans of $211 million were down $79 million from the year ago quarter and down $21 million from the prior quarter. The nonaccrual loans to total loans ratio improved to 1.01% in the third quarter, compared to 1.46% in the year ago quarter, and 1.12% in the prior quarter.


•	Third quarter net charge offs of $11 million were down $8 million from the year ago quarter and down $2 million from the prior quarter.


•	The allowance for loan losses of $277 million was up $7 million from the year ago quarter and was down $5 million from the prior quarter. The allowance for loan losses to total loans ratio was 1.32% in the third quarter, compared to 1.36% in the year ago quarter, and 1.35% in the prior quarter.


•	The allowance related to the oil and gas portfolio was $30 million at September 30, 2017 and represented 5.2% of total oil and gas loans.

Capital

The Company’s capital position remains strong, with a CET1 ratio of 9.9% at September 30, 2017. 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 2017 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 19, 2017. 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 2017 earnings call. The third quarter 2017 financial tables with 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 $30 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 and related materials may contain 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, 2017			Jun 30, 2017			Seql Qtr $ Change			Mar 31, 2017			Dec 31, 2016			Sep 30, 2016			Comp Qtr $ Change
Assets
Cash and due from banks	$	354,331		$	396,677		$	(42,346	)	$	332,601		$	446,558		$	356,047		$	(1,716	)
Interest-bearing deposits in other financial institutions	109,596			126,232			(16,636		)	337,167			149,175			240,010			(130,414		)
Federal funds sold and securities purchased under agreements to resell	27,700			43,000			(15,300		)	19,700			46,500			14,250			13,450
Investment securities held to maturity, at amortized cost	2,233,579			2,255,395			(21,816		)	1,554,843			1,273,536			1,253,494			980,085
Investment securities available for sale, at fair value	3,801,699			3,687,470			114,229			4,300,490			4,680,226			4,846,088			(1,044,389		)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	172,446			181,180			(8,734		)	139,273			140,001			140,215			32,231
Residential loans held for sale ⁽¹⁾	113,064			41,620			71,444			34,051			108,010			213,883			(100,819		)
Commercial loans held for sale	9,718			4,772			4,946			2,901			12,474			16,912			(7,194		)
Loans	20,931,460			20,783,069			148,391			20,147,683			20,054,716			19,844,005			1,087,455
Allowance for loan losses	(276,551		)	(281,101		)	4,550			(282,672		)	(278,335		)	(269,540		)	(7,011		)
Loans, net	20,654,909			20,501,968			152,941			19,865,011			19,776,381			19,574,465			1,080,444
Premises and equipment, net	330,065			328,404			1,661			332,884			330,315			329,726			339
Bank and corporate owned life insurance	589,093			588,440			653			587,600			585,290			584,088			5,005
Goodwill	972,006			972,006			—			972,006			971,951			971,951			55
Mortgage servicing rights, net	58,377			59,395			(1,018		)	60,702			61,476			58,414			(37		)
Other intangible assets, net	14,080			14,530			(450		)	15,026			15,377			15,902			(1,822		)
Trading assets	48,429			48,576			(147		)	49,306			52,398			60,780			(12,351		)
Other assets	575,455			519,360			56,095			506,296			489,647			476,539			98,916
Total assets	$	30,064,547		$	29,769,025		$	295,522		$	29,109,857		$	29,139,315		$	29,152,764		$	911,783
Liabilities and stockholders’ equity
Noninterest-bearing demand deposits	$	5,177,734		$	5,038,162		$	139,572		$	5,338,212		$	5,392,208		$	5,337,677		$	(159,943	)
Interest-bearing deposits	17,155,717			16,580,018			575,699			16,489,823			16,496,240			16,410,035			745,682
Total deposits	22,333,451			21,618,180			715,271			21,828,035			21,888,448			21,747,712			585,739
Federal funds purchased and securities sold under agreements to repurchase	476,550			607,669			(131,119		)	650,188			508,347			698,772			(222,222		)
Other short-term funding	588,067			794,813			(206,746		)	430,679			583,688			541,321			46,746
Long-term funding	3,147,285			3,262,120			(114,835		)	2,761,955			2,761,795			2,761,635			385,650
Trading liabilities	46,812			47,143			(331		)	47,561			51,103			62,301			(15,489		)
Accrued expenses and other liabilities	268,781			247,598			21,183			246,645			254,622			243,908			24,873
Total liabilities	26,860,946			26,577,523			283,423			25,965,063			26,048,003			26,055,649			805,297
Stockholders’ equity
Preferred equity	159,929			159,929			—			159,929			159,929			159,929			—
Common equity
Common stock	1,615			1,630			(15		)	1,630			1,630			1,630			(15		)
Surplus	1,442,328			1,474,301			(31,973		)	1,469,744			1,459,498			1,459,161			(16,833		)
Retained earnings	1,792,184			1,747,632			44,552			1,709,514			1,695,764			1,662,778			129,406
Accumulated other comprehensive income (loss)	(54,288		)	(53,470		)	(818		)	(56,344		)	(54,679		)	(1,254		)	(53,034		)
Treasury stock, at cost	(138,167		)	(138,520		)	353			(139,679		)	(170,830		)	(185,129		)	46,962
Total common equity	3,043,672			3,031,573			12,099			2,984,865			2,931,383			2,937,186			106,486
Total stockholders’ equity	3,203,601			3,191,502			12,099			3,144,794			3,091,312			3,097,115			106,486
Total liabilities and stockholders’ equity	$	30,064,547		$	29,769,025		$	295,522		$	29,109,857		$	29,139,315		$	29,152,764		$	911,783


(1)	Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated.

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Associated Banc-Corp Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)							Comp Qtr					YTD			YTD			Comp YTD
(In thousands, except per share data)	3Q17			3Q16			$ Change			% Change		Sep 2017			Sep 2016			$ Change			% Change
Interest income
Interest and fees on loans	$	196,972		$	167,350		$	29,622		18	%	$	554,867		$	490,065		$	64,802		13	%
Interest and dividends on investment securities
Taxable	24,162			22,948			1,214			5	%	71,295			72,734			(1,439		)	(2	)%
Tax-exempt	8,268			8,141			127			2	%	24,540			23,865			675			3	%
Other interest	2,492			1,064			1,428			134	%	5,581			3,449			2,132			62	%
Total interest income	231,894			199,503			32,391			16	%	656,283			590,113			66,170			11	%
Interest expense
Interest on deposits	27,778			13,118			14,660			112	%	65,882			36,562			29,320			80	%
Interest on Federal funds purchased and securities sold under agreements to repurchase	768			326			442			136	%	2,107			1,000			1,107			111	%
Interest on other short-term funding	1,039			296			743			N/M		3,946			1,656			2,290			138	%
Interest on long-term funding	12,187			7,229			4,958			69	%	30,133			23,657			6,476			27	%
Total interest expense	41,772			20,969			20,803			99	%	102,068			62,875			39,193			62	%
Net interest income	190,122			178,534			11,588			6	%	554,215			527,238			26,977			5	%
Provision for credit losses	5,000			21,000			(16,000		)	(76	)%	26,000			55,000			(29,000		)	(53	)%
Net interest income after provision for credit losses	185,122			157,534			27,588			18	%	528,215			472,238			55,977			12	%
Noninterest income
Trust service fees	12,785			11,700			1,085			9	%	37,066			34,656			2,410			7	%
Service charges on deposit accounts	16,268			17,445			(1,177		)	(7	)%	48,654			50,162			(1,508		)	(3	)%
Card-based and other nondeposit fees	12,619			12,777			(158		)	(1	)%	38,848			37,485			1,363			4	%
Insurance commissions	19,815			19,431			384			2	%	62,288			62,818			(530		)	(1	)%
Brokerage and annuity commissions	4,392			4,155			237			6	%	13,071			12,047			1,024			9	%
Mortgage banking, net	6,585			18,291			(11,706		)	(64	)%	16,191			26,562			(10,371		)	(39	)%
Capital market fees, net	4,610			7,012			(2,402		)	(34	)%	12,535			14,343			(1,808		)	(13	)%
Bank and corporate owned life insurance income	6,580			3,290			3,290			100	%	13,094			11,033			2,061			19	%
Asset gains (losses), net	(16		)	(1,034		)	1,018			(98	)%	(716		)	(853		)	137			(16	)%
Investment securities gains (losses), net	3			(13		)	16			(123	)%	359			6,201			(5,842		)	(94	)%
Other	2,254			2,180			74			3	%	6,746			6,140			606			10	%
Total noninterest income	85,895			95,234			(9,339		)	(10	)%	248,136			260,594			(12,458		)	(5	)%
Noninterest expense
Personnel expense	105,852			103,819			2,033			2	%	314,954			307,346			7,608			2	%
Occupancy	12,294			15,362			(3,068		)	(20	)%	40,345			42,379			(2,034		)	(5	)%
Equipment	5,232			5,319			(87		)	(2	)%	15,951			16,161			(210		)	(1	)%
Technology	15,233			14,173			1,060			7	%	45,126			42,887			2,239			5	%
Business development and advertising	7,764			5,251			2,513			48	%	20,751			20,053			698			3	%
Other intangible amortization	450			525			(75		)	(14	)%	1,459			1,568			(109		)	(7	)%
Loan expense	3,330			3,535			(205		)	(6	)%	8,924			10,198			(1,274		)	(12	)%
Legal and professional fees	6,248			4,804			1,444			30	%	16,125			14,685			1,440			10	%
Foreclosure / OREO expense, net	906			960			(54		)	(6	)%	3,593			4,167			(574		)	(14	)%
FDIC expense	7,800			9,000			(1,200		)	(13	)%	23,800			25,500			(1,700		)	(7	)%
Other	12,318			12,566			(248		)	(2	)%	36,406			38,701			(2,295		)	(6	)%
Total noninterest expense	177,427			175,314			2,113			1	%	527,434			523,645			3,789			1	%
Income before income taxes	93,590			77,454			16,136			21	%	248,917			209,187			39,730			19	%
Income tax expense	28,589			23,638			4,951			21	%	69,663			63,746			5,917			9	%
Net income	65,001			53,816			11,185			21	%	179,254			145,441			33,813			23	%
Preferred stock dividends	2,339			2,188			151			7	%	7,008			6,555			453			7	%
Net income available to common equity	$	62,662		$	51,628		$	11,034		21	%	$	172,246		$	138,886		$	33,360		24	%
Earnings per common share
Basic	$	0.41		$	0.34		$	0.07		21	%	$	1.13		$	0.92		$	0.21		23	%
Diluted	$	0.41		$	0.34		$	0.07		21	%	$	1.11		$	0.92		$	0.19		21	%
Average common shares outstanding
Basic	150,565			148,708			1,857			1	%	150,983			148,607			2,376			2	%
Diluted	152,968			149,973			2,995			2	%	153,782			149,645			4,137			3	%

N/M = Not meaningful

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Associated Banc-Corp Consolidated Statements of Income (Unaudited) - Quarterly Trend
(In thousands, except per share data)							Seql Qtr													Comp Qtr
(In thousands, except per share data)	3Q17			2Q17			$ Change			% Change		1Q17			4Q16		3Q16			$ Change			% Change
Interest income
Interest and fees on loans	$	196,972		$	184,246		$	12,726		7	%	$	173,649		$	169,473	$	167,350		$	29,622		18	%
Interest and dividends on investment securities
Taxable	24,162			23,658			504			2	%	23,475			22,418		22,948			1,214			5	%
Tax-exempt	8,268			8,143			125			2	%	8,129			8,184		8,141			127			2	%
Other interest	2,492			1,553			939			60	%	1,536			1,380		1,064			1,428			134	%
Total interest income	231,894			217,600			14,294			7	%	206,789			201,455		199,503			32,391			16	%
Interest expense
Interest on deposits	27,778			21,180			6,598			31	%	16,924			13,773		13,118			14,660			112	%
Interest on Federal funds purchased and securities sold under agreements to repurchase	768			824			(56		)	(7	)%	515			314		326			442			136	%
Interest on other short-term funding	1,039			1,827			(788		)	(43	)%	1,080			458		296			743			N/M
Interest on long-term funding	12,187			9,950			2,237			22	%	7,996			6,875		7,229			4,958			69	%
Total interest expense	41,772			33,781			7,991			24	%	26,515			21,420		20,969			20,803			99	%
Net Interest income	190,122			183,819			6,303			3	%	180,274			180,035		178,534			11,588			6	%
Provision for credit losses	5,000			12,000			(7,000		)	(58	)%	9,000			15,000		21,000			(16,000		)	(76	)%
Net interest income after provision for credit losses	185,122			171,819			13,303			8	%	171,274			165,035		157,534			27,588			18	%
Noninterest income
Trust service fees	12,785			12,346			439			4	%	11,935			12,211		11,700			1,085			9	%
Service charges on deposit accounts	16,268			16,030			238			1	%	16,356			16,447		17,445			(1,177		)	(7	)%
Card-based and other nondeposit fees	12,619			13,764			(1,145		)	(8	)%	12,465			12,592		12,777			(158		)	(1	)%
Insurance commissions	19,815			20,853			(1,038		)	(5	)%	21,620			17,977		19,431			384			2	%
Brokerage and annuity commissions	4,392			4,346			46			1	%	4,333			4,188		4,155			237			6	%
Mortgage banking, net	6,585			5,027			1,558			31	%	4,579			11,559		18,291			(11,706		)	(64	)%
Capital market fees, net	4,610			4,042			568			14	%	3,883			7,716		7,012			(2,402		)	(34	)%
Bank and corporate owned life insurance income	6,580			3,899			2,681			69	%	2,615			3,338		3,290			3,290			100	%
Asset gains (losses), net	(16		)	(466		)	450			(97	)%	(234		)	767		(1,034		)	1,018			(98	)%
Investment securities gains (losses), net	3			356			(353		)	(99	)%	—			3,115		(13		)	16			(123	)%
Other	2,254			2,213			41			2	%	2,279			2,379		2,180			74			3	%
Total noninterest income	85,895			82,410			3,485			4	%	79,831			92,289		95,234			(9,339		)	(10	)%
Noninterest expense
Personnel expense	105,852			104,683			1,169			1	%	104,419			107,491		103,819			2,033			2	%
Occupancy	12,294			12,832			(538		)	(4	)%	15,219			13,690		15,362			(3,068		)	(20	)%
Equipment	5,232			5,234			(2		)	—	%	5,485			5,328		5,319			(87		)	(2	)%
Technology	15,233			15,473			(240		)	(2	)%	14,420			14,413		14,173			1,060			7	%
Business development and advertising	7,764			7,152			612			9	%	5,835			6,298		5,251			2,513			48	%
Other intangible amortization	450			496			(46		)	(9	)%	513			525		525			(75		)	(14	)%
Loan expense	3,330			2,974			356			12	%	2,620			3,443		3,535			(205		)	(6	)%
Legal and professional fees	6,248			5,711			537			9	%	4,166			5,184		4,804			1,444			30	%
Foreclosure / OREO expense, net	906			1,182			(276		)	(23	)%	1,505			677		960			(54		)	(6	)%
FDIC expense	7,800			8,000			(200		)	(3	)%	8,000			9,250		9,000			(1,200		)	(13	)%
Other	12,318			12,579			(261		)	(2	)%	11,509			12,616		12,566			(248		)	(2	)%
Total noninterest expense	177,427			176,316			1,111			1	%	173,691			178,915		175,314			2,113			1	%
Income before income taxes	93,590			77,913			15,677			20	%	77,414			78,409		77,454			16,136			21	%
Income tax expense	28,589			19,930			8,659			43	%	21,144			23,576		23,638			4,951			21	%
Net income	65,001			57,983			7,018			12	%	56,270			54,833		53,816			11,185			21	%
Preferred stock dividends	2,339			2,339			—			—	%	2,330			2,348		2,188			151			7	%
Net income available to common equity	$	62,662		$	55,644		$	7,018		13	%	$	53,940		$	52,485	$	51,628		$	11,034		21	%
Earnings per common share
Basic	$	0.41		$	0.36		$	0.05		14	%	$	0.36		$	0.35	$	0.34		$	0.07		21	%
Diluted	$	0.41		$	0.36		$	0.05		14	%	$	0.35		$	0.34	$	0.34		$	0.07		21	%
Average common shares outstanding
Basic	150,565			151,573			(1,008		)	(1	)%	150,815			149,253		148,708			1,857			1	%
Diluted	152,968			154,302			(1,334		)	(1	)%	153,869			151,563		149,973			2,995			2	%

N/M = Not meaningful

Page 3



Associated Banc-Corp Selected Quarterly Information
(In millions, except share and per share, full time equivalent employee and branch count data)	YTD Sep 2017			YTD Sep 2016			3Q17			2Q17			1Q17			4Q16			3Q16
Per common share data
Dividends	$	0.36		$	0.33		$	0.12		$	0.12		$	0.12		$	0.12		$	0.11
Market value:
High	26.50			19.91			25.70			25.50			26.50			25.15			19.91
Low	21.25			15.48			21.25			23.25			23.40			19.05			16.49
Close	24.25			19.59			24.25			25.20			24.40			24.70			19.59
Book value	19.98			19.42			19.98			19.70			19.42			19.27			19.42
Tangible book value / share	$	13.51		$	12.89		$	13.51		$	13.29		$	13.00		$	12.78		$	12.89
Performance ratios (annualized)
Return on average assets	0.82		%	0.68		%	0.86		%	0.80		%	0.79		%	0.75		%	0.74		%
Effective tax rate	27.99		%	30.47		%	30.55		%	25.58		%	27.31		%	30.07		%	30.52		%
Dividend payout ratio⁽¹⁾	31.86		%	35.87		%	29.27		%	33.33		%	33.33		%	34.29		%	32.35		%
Net interest margin	2.83		%	2.80		%	2.84		%	2.83		%	2.84		%	2.80		%	2.77		%
Selected trend information
Average full time equivalent employees	4,368			4,422			4,384			4,352			4,370			4,439			4,477
Branch count							214			214			215			217			217
Trust assets under management, at market value							$	9,243		$	8,997		$	8,716		$	8,302		$	8,179
Mortgage loans originated for sale during period	$	466		$	984		$	246		$	119		$	101		$	287		$	466
Mortgage loan settlements during period	$	552		$	1,147		$	188		$	167		$	197		$	396		$	655
Mortgage portfolio serviced for others							$	7,653		$	7,768		$	7,909		$	7,975		$	8,011
Mortgage servicing rights, net / mortgage portfolio serviced for others							0.76		%	0.76		%	0.77		%	0.77		%	0.73		%
Shares outstanding, end of period							152,316			153,848			153,734			152,121			151,243
Selected quarterly ratios
Loans / deposits							93.72		%	96.14		%	92.30		%	91.62		%	91.25		%
Stockholders’ equity / assets							10.66		%	10.72		%	10.80		%	10.61		%	10.62		%
Risk-based capital ^{(2) (3)}
Total risk-weighted assets							$	21,663		$	21,590		$	21,129		$	21,341		$	21,265
Common equity Tier 1							$	2,144		$	2,130		$	2,085		$	2,033		$	1,984
Common equity Tier 1 capital ratio							9.90		%	9.87		%	9.87		%	9.52		%	9.33		%
Tier 1 capital ratio							10.64		%	10.61		%	10.62		%	10.27		%	10.08		%
Total capital ratio							13.03		%	13.01		%	13.05		%	12.68		%	12.49		%
Tier 1 leverage ratio							7.93		%	8.09		%	8.05		%	7.83		%	7.64		%


(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, 2017 data is estimated.

Page 4



Associated Banc-Corp Selected Asset Quality Information
(In thousands)	Sep 30, 2017			Jun 30, 2017			Seql Qtr % Change		Mar 31, 2017			Dec 31, 2016			Sep 30, 2016			Comp Qtr % Change
Allowance for loan losses
Balance at beginning of period	$	281,101		$	282,672		(1	)%	$	278,335		$	269,540		$	267,780		5	%
Provision for loan losses	6,000			11,000			(45	)%	10,000			18,000			20,000			(70	)%
Charge offs	(14,727		)	(15,376		)	(4	)%	(11,854		)	(11,609		)	(28,964		)	(49	)%
Recoveries	4,177			2,805			49	%	6,191			2,404			10,724			(61	)%
Net charge offs	(10,550		)	(12,571		)	(16	)%	(5,663		)	(9,205		)	(18,240		)	(42	)%
Balance at end of period	$	276,551		$	281,101		(2	)%	$	282,672		$	278,335		$	269,540		3	%
Allowance for unfunded commitments
Balance at beginning of period	$	25,400		$	24,400		4	%	$	25,400		$	28,400		$	27,400		(7	)%
Provision for unfunded commitments	(1,000		)	1,000			(200	)%	(1,000		)	(3,000		)	1,000			(200	)%
Balance at end of period	$	24,400		$	25,400		(4	)%	$	24,400		$	25,400		$	28,400		(14	)%
Allowance for credit losses	$	300,951		$	306,501		(2	)%	$	307,072		$	303,735		$	297,940		1	%
Provision for credit losses	$	5,000		$	12,000		(58	)%	$	9,000		$	15,000		$	21,000		(76	)%
	Sep 30, 2017			Jun 30, 2017			Seql Qtr % Change		Mar 31, 2017			Dec 31, 2016			Sep 30, 2016			Comp Qtr % Change
Net charge offs
Commercial and industrial	$	(9,442	)	$	(11,046	)	(15	)%	$	(4,368	)	$	(6,566	)	$	(16,407	)	(42	)%
Commercial real estate—owner occupied	13			43			(70	)%	19			(221		)	(154		)	(108	)%
Commercial and business lending	(9,429		)	(11,003		)	(14	)%	(4,349		)	(6,787		)	(16,561		)	(43	)%
Commercial real estate—investor	55			(126		)	(144	)%	(514		)	5			(564		)	(110	)%
Real estate construction	(150		)	(26		)	477	%	11			(86		)	(22		)	582	%
Commercial real estate lending	(95		)	(152		)	(38	)%	(503		)	(81		)	(586		)	(84	)%
Total commercial	(9,524		)	(11,155		)	(15	)%	(4,852		)	(6,868		)	(17,147		)	(44	)%
Residential mortgage	(26		)	(564		)	(95	)%	(128		)	(1,048		)	(540		)	(95	)%
Home equity	(87		)	54			(261	)%	173			(491		)	125			(170	)%
Other consumer	(913		)	(906		)	1	%	(856		)	(798		)	(678		)	35	%
Total consumer	(1,026		)	(1,416		)	(28	)%	(811		)	(2,337		)	(1,093		)	(6	)%
Total net charge offs	$	(10,550	)	$	(12,571	)	(16	)%	$	(5,663	)	$	(9,205	)	$	(18,240	)	(42	)%

(In basis points)	Sep 30, 2017			Jun 30, 2017					Mar 31, 2017			Dec 31, 2016			Sep 30, 2016
Net charge offs to average loans (annualized)
Commercial and industrial	(58		)	(69		)			(28		)	(40		)	(98		)
Commercial real estate—owner occupied	1			2					1			(10		)	(7		)
Commercial and business lending	(51		)	(60		)			(24		)	(36		)	(87		)
Commercial real estate—investor	1			(2		)			(6		)	N/M			(6		)
Real estate construction	(4		)	(1		)			N/M			(3		)	(1		)
Commercial real estate lending	(1		)	(1		)			(4		)	(1		)	(5		)
Total commercial	(31		)	(36		)			(16		)	(22		)	(55		)
Residential mortgage	N/M			(3		)			(1		)	(7		)	(3		)
Home equity	(4		)	2					8			(21		)	5
Other consumer	(97		)	(98		)			(90		)	(80		)	(67		)
Total consumer	(5		)	(7		)			(4		)	(12		)	(6		)
Total net charge offs	(20		)	(25		)			(11		)	(18		)	(36		)

(In thousands)	Sep 30, 2017			Jun 30, 2017			Seql Qtr % Change		Mar 31, 2017			Dec 31, 2016			Sep 30, 2016			Comp Qtr % Change
Credit Quality
Nonaccrual loans	$	210,517		$	231,888		(9	)%	$	259,991		$	275,303		$	289,911		(27	)%
Other real estate owned (OREO)	8,483			7,782			9	%	7,540			10,274			14,499			(41	)%
Other nonperforming assets	7,418			7,418			—	%	7,418			7,418			—			N/M
Total nonperforming assets	$	226,418		$	247,088		(8	)%	$	274,949		$	292,995		$	304,410		(26	)%

Loans 90 or more days past due and still accruing	$	1,611		$	1,535		5	%	$	1,720		$	1,613		$	1,511		7	%
Allowance for loan losses to loans	1.32		%	1.35		%			1.40		%	1.39		%	1.36		%
Allowance for loan losses to nonaccrual loans	131.37		%	121.22		%			108.72		%	101.10		%	92.97		%
Nonaccrual loans to total loans	1.01		%	1.12		%			1.29		%	1.37		%	1.46		%
Nonperforming assets to total loans plus OREO	1.08		%	1.19		%			1.36		%	1.46		%	1.53		%
Nonperforming assets to total assets	0.75		%	0.83		%			0.94		%	1.01		%	1.04		%
Year-to-date net charge offs to average loans (annualized)	0.19		%	0.18		%			0.11		%	0.33		%	0.38		%

N/M = Not meaningful

Page 5



Associated Banc-Corp Selected Asset Quality Information (continued)
(In thousands)	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Nonaccrual loans
Commercial and industrial	$	122,284	$	141,475	(14	)%	$	164,891	$	183,371	$	205,902	(41	)%
Commercial real estate—owner occupied	15,598		15,800		(1	)%	17,925		9,544		6,995		123	%
Commercial and business lending	137,882		157,275		(12	)%	182,816		192,915		212,897		(35	)%
Commercial real estate—investor	3,543		7,206		(51	)%	8,273		18,051		8,028		(56	)%
Real estate construction	1,540		1,717		(10	)%	1,247		844		864		78	%
Commercial real estate lending	5,083		8,923		(43	)%	9,520		18,895		8,892		(43	)%
Total commercial	142,965		166,198		(14	)%	192,336		211,810		221,789		(36	)%
Residential mortgage	54,654		51,975		5	%	54,183		50,236		53,475		2	%
Home equity	12,639		13,482		(6	)%	13,212		13,001		14,347		(12	)%
Other consumer	259		233		11	%	260		256		300		(14	)%
Total consumer	67,552		65,690		3	%	67,655		63,493		68,122		(1	)%
Total nonaccrual loans	$	210,517	$	231,888	(9	)%	$	259,991	$	275,303	$	289,911	(27	)%

	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Restructured loans (accruing)
Commercial and industrial	$	32,572	$	31,540	3	%	$	30,852	$	31,884	$	30,248	8	%
Commercial real estate—owner occupied	4,077		4,145		(2	)%	5,532		5,490		7,445		(45	)%
Commercial and business lending	36,649		35,685		3	%	36,384		37,374		37,693		(3	)%
Commercial real estate—investor	14,294		14,628		(2	)%	14,563		15,289		15,352		(7	)%
Real estate construction	316		321		(2	)%	327		359		365		(13	)%
Commercial real estate lending	14,610		14,949		(2	)%	14,890		15,648		15,717		(7	)%
Total commercial	51,259		50,634		1	%	51,274		53,022		53,410		(4	)%
Residential mortgage	16,859		17,624		(4	)%	18,535		18,100		18,049		(7	)%
Home equity	7,987		7,985		—	%	8,209		7,756		7,685		4	%
Other consumer	1,073		1,082		(1	)%	1,041		979		926		16	%
Total consumer	25,919		26,691		(3	)%	27,785		26,835		26,660		(3	)%
Total restructured loans (accruing)	$	77,178	$	77,325	—	%	$	79,059	$	79,857	$	80,070	(4	)%
Restructured loans included in nonaccrual loans (not included with restructed loans (accruing))	$	33,520	$	51,715	(35	)%	$	78,902	$	29,385	$	31,758	6	%
	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Accruing Loans 30-89 Days Past Due
Commercial and industrial	$	1,378	$	1,255	10	%	$	1,675	$	1,413	$	950	45	%
Commercial real estate—owner occupied	1,522		1,284		19	%	970		1,384		869		75	%
Commercial and business lending	2,900		2,539		14	%	2,645		2,797		1,819		59	%
Commercial real estate—investor	1,109		899		23	%	1,122		931		630		76	%
Real estate construction	700		135		419	%	431		369		402		74	%
Commercial real estate lending	1,809		1,034		75	%	1,553		1,300		1,032		75	%
Total commercial	4,709		3,573		32	%	4,198		4,097		2,851		65	%
Residential mortgage	8,870		9,165		(3	)%	7,243		8,142		6,697		32	%
Home equity	7,191		5,924		21	%	4,512		5,849		5,473		31	%
Other consumer	1,686		1,746		(3	)%	1,658		3,189		2,046		(18	)%
Total consumer	17,747		16,835		5	%	13,413		17,180		14,216		25	%
Total accruing loans 30-89 days past due	$	22,456	$	20,408	10	%	$	17,611	$	21,277	$	17,067	32	%

	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Potential Problem Loans
Commercial and industrial	$	153,779	$	142,607	8	%	$	218,930	$	227,196	$	351,290	(56	)%
Commercial real estate—owner occupied	57,468		60,724		(5	)%	58,994		64,524		47,387		21	%
Commercial and business lending	211,247		203,331		4	%	277,924		291,720		398,677		(47	)%
Commercial real estate—investor	46,770		48,569		(4	)%	49,217		51,228		36,765		27	%
Real estate construction	118		8,901		(99	)%	10,141		2,465		1,929		(94	)%
Commercial real estate lending	46,888		57,470		(18	)%	59,358		53,693		38,694		21	%
Total commercial	258,135		260,801		(1	)%	337,282		345,413		437,371		(41	)%
Residential mortgage	650		1,576		(59	)%	2,155		5,615		3,226		(80	)%
Home equity	124		208		(40	)%	220		114		78		59	%
Total consumer	774		1,784		(57	)%	2,375		5,729		3,304		(77	)%
Total potential problem loans	$	258,909	$	262,585	(1	)%	$	339,657	$	351,142	$	440,675	(41	)%

N/M = Not meaningful

Page 6



Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter
	Three Months Ended
	September 30, 2017						June 30, 2017						September 30, 2016
(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	$	7,318,594	$	71,169	3.86	%	$	7,321,523	$	65,507	3.59	%	$	7,577,470	$	61,184	3.21	%
Commercial real estate lending	4,973,436		50,396		4.02	%	4,964,257		47,562		3.84	%	4,855,827		41,600		3.41	%
Total commercial	12,292,030		121,565		3.93	%	12,285,780		113,069		3.69	%	12,433,297		102,784		3.29	%
Residential mortgage	7,339,827		59,828		3.26	%	6,957,865		56,097		3.23	%	6,255,264		49,254		3.15	%
Retail	1,267,280		16,541		5.21	%	1,278,345		16,048		5.03	%	1,364,215		16,246		4.76	%
Total loans	20,899,137		197,934		3.77	%	20,521,990		185,214		3.62	%	20,052,776		168,284		3.35	%
Investment securities
Taxable	4,846,653		24,162		1.97	%	4,781,488		23,658		1.98	%	4,859,750		22,948		1.89	%
Tax-exempt ⁽¹⁾	1,177,962		12,650		4.30	%	1,143,736		12,459		4.36	%	1,119,873		12,456		4.45	%
Other short-term investments	536,043		2,492		1.85	%	297,341		1,553		2.09	%	401,764		1,064		1.06	%
Investments and other	6,560,658		39,304		2.40	%	6,222,565		37,670		2.42	%	6,381,387		36,468		2.29	%
Total earning assets	27,459,795		$	237,238	3.44	%	26,744,555		$	222,884	3.34	%	26,434,163		$	204,752	3.09	%
Other assets, net	2,504,232						2,454,351						2,534,209
Total assets	$	29,964,027					$	29,198,906					$	28,968,372
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings	$	1,545,884	$	282	0.06	%	$	1,541,129	$	201	0.05	%	$	1,448,223	$	198	0.05	%
Interest-bearing demand	4,347,550		6,767		0.62	%	4,272,620		5,506		0.52	%	4,151,708		2,937		0.28	%
Money market	9,367,907		15,357		0.65	%	9,064,874		11,763		0.52	%	9,088,943		6,956		0.30	%
Time deposits	2,187,986		5,372		0.97	%	1,752,255		3,710		0.85	%	1,553,349		3,027		0.78	%
Total interest-bearing deposits	17,449,327		27,778		0.63	%	16,630,878		21,180		0.51	%	16,242,223		13,118		0.32	%
Federal funds purchased and securities sold under agreements to repurchase	398,200		768		0.76	%	489,571		824		0.67	%	655,825		326		0.20	%
Other short-term funding	416,124		1,039		0.99	%	842,305		1,827		0.87	%	324,623		296		0.36	%
Total short-term funding	814,324		1,807		0.88	%	1,331,876		2,651		0.80	%	980,448		622		0.25	%
Long-term funding	3,239,687		12,187		1.50	%	2,932,348		9,950		1.36	%	3,256,099		7,229		0.89	%
Total short and long-term funding	4,054,011		13,994		1.37	%	4,264,224		12,601		1.18	%	4,236,547		7,851		0.74	%
Total interest-bearing liabilities	21,503,338		$	41,772	0.77	%	20,895,102		$	33,781	0.65	%	20,478,770		$	20,969	0.41	%
Noninterest-bearing demand deposits	4,992,118						4,892,271						5,161,802
Other liabilities	283,724						246,395						281,442
Stockholders’ equity	3,184,847						3,165,138						3,046,358
Total liabilities and stockholders’ equity	$	29,964,027					$	29,198,906					$	28,968,372
Interest rate spread					2.67	%					2.69	%					2.68	%
Net free funds					0.17	%					0.14	%					0.09	%
Fully tax-equivalent net interest income and net interest margin			$	195,466	2.84	%			$	189,103	2.83	%			$	183,783	2.77	%
Fully tax-equivalent adjustment			5,344						5,284						5,249
Net interest income			$	190,122					$	183,819					$	178,534


(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,
	2017						2016
(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	$	7,280,302	$	197,356	3.62	%	$	7,391,735	$	177,563	3.21	%
Commercial real estate lending	4,979,132		143,093		3.84	%	4,660,538		120,758		3.46	%
Total commercial	12,259,434		340,449		3.71	%	12,052,273		298,321		3.31	%
Residential mortgage	6,956,937		169,231		3.24	%	6,102,383		145,384		3.18	%
Retail	1,284,607		48,039		4.99	%	1,386,416		49,231		4.74	%
Total loans	20,500,978		557,719		3.63	%	19,541,072		492,936		3.37	%
Investment securities
Taxable	4,819,580		71,295		1.97	%	4,953,410		72,734		1.96	%
Tax-exempt⁽¹⁾	1,153,382		37,546		4.34	%	1,076,603		36,513		4.52	%
Other short-term investments	378,052		5,581		1.97	%	322,424		3,449		1.43	%
Investments and other	6,351,014		114,422		2.40	%	6,352,437		112,696		2.37	%
Total earning assets	26,851,992		$	672,141	3.34	%	25,893,509		$	605,632	3.12	%
Other assets, net	2,466,764						2,478,574
Total assets	$	29,318,756					$	28,372,083
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings	$	1,517,901	$	671	0.05	%	$	1,420,398	$	662	0.06	%
Interest-bearing demand	4,290,862		16,483		0.51	%	3,672,705		7,113		0.26	%
Money market	9,201,369		36,507		0.53	%	9,071,388		19,709		0.29	%
Time deposits	1,853,295		12,221		0.88	%	1,550,693		9,078		0.78	%
Total interest-bearing deposits	16,863,427		65,882		0.52	%	15,715,184		36,562		0.31	%
Federal funds purchased and securities sold under agreements to repurchase	460,672		2,107		0.61	%	629,976		1,000		0.21	%
Other short-term funding	646,266		3,946		0.82	%	769,049		1,656		0.29	%
Total short-term funding	1,106,938		6,053		0.73	%	1,399,025		2,656		0.25	%
Long-term funding	2,979,712		30,133		1.35	%	2,964,807		23,657		1.06	%
Total short and long-term funding	4,086,650		36,186		1.18	%	4,363,832		26,313		0.80	%
Total interest-bearing liabilities	20,950,077		$	102,068	0.65	%	20,079,016		$	62,875	0.42	%
Noninterest-bearing demand deposits	4,950,252						5,043,231
Other liabilities	260,409						247,624
Stockholders’ equity	3,158,018						3,002,212
Total liabilities and stockholders’ equity	$	29,318,756					$	28,372,083
Interest rate spread					2.69	%					2.70	%
Net free funds					0.14	%					0.10	%
Fully tax-equivalent net interest income and net interest margin			$	570,073	2.83	%			$	542,757	2.80	%
Fully tax-equivalent adjustment			15,858						15,519
Net interest income			$	554,215					$	527,238


(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)	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Period end loan composition
Commercial and industrial	$	6,534,660	$	6,571,000	(1	)%	$	6,300,646	$	6,489,014	$	6,721,557	(3	)%
Commercial real estate—owner occupied	827,064		845,336		(2	)%	878,391		897,724		892,678		(7	)%
Commercial and business lending	7,361,724		7,416,336		(1	)%	7,179,037		7,386,738		7,614,235		(3	)%
Commercial real estate—investor	3,345,536		3,329,585		—	%	3,415,355		3,574,732		3,530,370		(5	)%
Real estate construction	1,552,135		1,651,805		(6	)%	1,553,205		1,432,497		1,314,431		18	%
Commercial real estate lending	4,897,671		4,981,390		(2	)%	4,968,560		5,007,229		4,844,801		1	%
Total commercial	12,259,395		12,397,726		(1	)%	12,147,597		12,393,967		12,459,036		(2	)%
Residential mortgage	7,408,471		7,115,457		4	%	6,715,282		6,332,327		6,034,166		23	%
Home equity	890,130		897,111		(1	)%	911,969		934,443		951,594		(6	)%
Other consumer	373,464		372,775		—	%	372,835		393,979		399,209		(6	)%
Total consumer	8,672,065		8,385,343		3	%	8,000,086		7,660,749		7,384,969		17	%
Total loans	$	20,931,460	$	20,783,069	1	%	$	20,147,683	$	20,054,716	$	19,844,005	5	%

	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Period end deposit and customer funding composition
Noninterest-bearing demand	$	5,177,734	$	5,038,162	3	%	$	5,338,212	$	5,392,208	$	5,337,677	(3	)%
Savings	1,544,037		1,552,820		(1	)%	1,530,155		1,431,494		1,441,187		7	%
Interest-bearing demand	4,990,891		3,858,739		29	%	4,736,236		4,687,656		4,548,390		10	%
Money market	8,299,512		9,228,129		(10	)%	8,608,523		8,770,963		8,894,357		(7	)%
Brokered CDs	3,554		131,184		(97	)%	54,993		52,725		44,373		(92	)%
Other time	2,317,723		1,809,146		28	%	1,559,916		1,553,402		1,481,728		56	%
Total deposits	22,333,451		21,618,180		3	%	21,828,035		21,888,448		21,747,712		3	%
Customer funding	255,975		262,318		(2	)%	326,823		300,197		477,607		(46	)%
Total deposits and customer funding	$	22,589,426	$	21,880,498	3	%	$	22,154,858	$	22,188,645	$	22,225,319	2	%
Network transaction deposits ⁽¹⁾	$	2,622,787	$	3,220,956	(19	)%	$	3,417,380	$	3,895,467	$	3,730,513	(30	)%
Net deposits and customer funding (Total deposits and customer funding, excluding Brokered CDs and network transaction deposits)	$	19,963,085	$	18,528,358	8	%	$	18,682,485	$	18,240,453	$	18,450,433	8	%

	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Quarter average loan composition
Commercial and industrial	$	6,487,378	$	6,449,250	1	%	$	6,313,389	$	6,514,974	$	6,674,688	(3	)%
Commercial real estate—owner occupied	831,216		872,273		(5	)%	886,092		891,836		902,782		(8	)%
Commercial and business lending	7,318,594		7,321,523		—	%	7,199,481		7,406,810		7,577,470		(3	)%
Commercial real estate—investor	3,346,669		3,359,817		—	%	3,502,769		3,546,559		3,532,861		(5	)%
Real estate construction	1,626,767		1,604,440		1	%	1,497,225		1,368,084		1,322,966		23	%
Commercial real estate lending	4,973,436		4,964,257		—	%	4,999,994		4,914,643		4,855,827		2	%
Total commercial	12,292,030		12,285,780		—	%	12,199,475		12,321,453		12,433,297		(1	)%
Residential mortgage	7,339,827		6,957,865		5	%	6,564,600		6,317,769		6,255,264		17	%
Home equity	894,596		906,208		(1	)%	923,896		942,620		961,034		(7	)%
Other consumer	372,684		372,137		—	%	384,754		395,228		403,181		(8	)%
Total consumer	8,607,107		8,236,210		5	%	7,873,250		7,655,617		7,619,479		13	%
Total loans	$	20,899,137	$	20,521,990	2	%	$	20,072,725	$	19,977,070	$	20,052,776	4	%

	Sep 30, 2017		Jun 30, 2017		Seql Qtr % Change		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		Comp Qtr % Change
Quarter average deposit composition
Noninterest-bearing demand	$	4,992,118	$	4,892,271	2	%	$	4,966,082	$	5,294,078	$	5,161,802	(3	)%
Savings	1,545,884		1,541,129		—	%	1,465,811		1,451,803		1,448,223		7	%
Interest-bearing demand	4,347,550		4,272,620		2	%	4,251,357		4,140,072		4,151,708		5	%
Money market	9,367,907		9,064,874		3	%	9,169,141		9,296,364		9,088,943		3	%
Time deposits	2,187,986		1,752,255		25	%	1,613,331		1,560,145		1,553,349		41	%
Total deposits	$	22,441,445	$	21,523,149	4	%	$	21,465,722	$	21,742,462	$	21,404,025	5	%


(1)	Included above in interest-bearing demand and money market.

Page 9



Associated Banc-Corp Non-GAAP Financial Measures Reconciliation
(In millions)	YTD Sep 2017			YTD Sep 2016			3Q17			2Q17			1Q17			4Q16			3Q16
Tangible common equity reconciliation ⁽¹⁾
Common equity							$	3,044		$	3,032		$	2,985		$	2,931		$	2,937
Goodwill and other intangible assets, net							(986		)	(987		)	(987		)	(987		)	(988		)
Tangible common equity							$	2,058		$	2,045		$	1,998		$	1,944		$	1,949
Tangible assets reconciliation ⁽¹⁾
Total assets							$	30,065		$	29,769		$	29,110		$	29,139		$	29,153
Goodwill and other intangible assets, net							(986		)	(987		)	(987		)	(987		)	(988		)
Tangible assets							$	29,079		$	28,782		$	28,123		$	28,152		$	28,165
Average tangible common equity and average common equity tier 1 reconciliation⁽¹⁾
Common equity	$	2,998		$	2,876		$	3,025		$	3,005		$	2,963		$	2,925		$	2,911
Goodwill and other intangible assets, net	(987		)	(989		)	(986		)	(987		)	(987		)	(988		)	(988		)
Tangible common equity	2,011			1,887			2,039			2,018			1,976			1,937			1,923
Less: Accumulated other comprehensive income / loss	51			1			49			50			54			28			(3		)
Less: Deferred tax assets / deferred tax liabilities, net	32			33			32			32			32			33			33
Average common equity Tier 1	$	2,094		$	1,921		$	2,120		$	2,100		$	2,062		$	1,998		$	1,953
Selected Trend Information ⁽²⁾
Trust service fees							$	13		$	12		$	12		$	12		$	12
Service charges on deposit accounts							16			16			16			16			18
Card-based and other nondeposit fees							13			14			13			13			13
Insurance commissions							20			21			22			18			19
Brokerage and annuity commissions							4			4			4			4			4
Fee-based revenue							66			67			67			63			66
Other							20			15			13			29			29
Total noninterest income							$	86		$	82		$	80		$	92		$	95
Selected equity and performance ratios ^{(1) (3)}
Tangible common equity / tangible assets							7.08		%	7.11		%	7.10		%	6.91		%	6.92		%
Return on average equity	7.59		%	6.47		%	8.10		%	7.35		%	7.31		%	7.07		%	7.03		%
Return on average tangible common equity	11.45		%	9.83		%	12.20		%	11.06		%	11.07		%	10.78		%	10.68		%
Return on average common equity Tier 1	11.00		%	9.66		%	11.73		%	10.63		%	10.61		%	10.45		%	10.52		%
Efficiency ratio reconciliation ⁽⁴⁾
Federal Reserve efficiency ratio	65.64		%	67.51		%	63.92		%	66.69		%	66.39		%	65.35		%	64.40		%
Fully tax-equivalent adjustment	(1.27		)%	(1.32		)%	(1.21		)%	(1.30		)%	(1.30		)%	(1.25		)%	(1.21		)%
Other intangible amortization	(0.18		)%	(0.20		)%	(0.16		)%	(0.18		)%	(0.20		)%	(0.20		)%	(0.19		)%
Fully tax-equivalent efficiency ratio	64.19		%	65.99		%	62.55		%	65.21		%	64.89		%	63.90		%	63.00		%


(1)	The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. 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. May not match the income statement due to rounding.


(3)	These 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.

(4)

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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