Associated Banc-Corp (ASB) 8-K Associated Banc-Corp Reports Second Quarter Earnings of $0.36 per share

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 Second Quarter Earnings of $0.36 per share

Earnings per share up 16% from prior year

Robust loan growth and improving fee-based income trends

GREEN BAY, Wis. — July 20, 2017 — Associated Banc-Corp (NYSE: ASB) today reported net income available to common equity of $56 million, or $0.36 per common share for the quarter ended June 30, 2017. This compares to net income available to common equity of $47 million, or $0.31 per common share for the quarter ended June 30, 2016.

“Robust loan growth and improving fee-based income trends drove this quarter’s results. Our residential mortgage retention strategy contributed to most of this quarter’s loan growth and we are also pleased to report solid commercial and business lending growth. We also benefited from improving fee-based revenue streams; particularly, card-based and nondeposit fees, trust service fees, and brokerage and annuity commissions which contributed to bottom line expansion,” said President and CEO Philip B. Flynn. “Disciplined expense controls combined with improving credit trends rounded out the quarter. We remain on track to deliver on our full year guidance.”

SECOND QUARTER SUMMARY

• Average loans of $20.5 billion grew $880 million, or 4% from the year ago quarter

• Average deposits of $21.5 billion grew $1.2 billion, or 6% from the year ago quarter

• Net interest income of $184 million increased $7 million, or 4% from the year ago quarter

• Net interest margin of 2.83% improved from 2.81% in the year ago quarter

• Provision for credit losses of $12 million improved $2 million, or 14% from the year ago quarter

• Noninterest income of $82 million improved modestly from the year ago quarter

• Noninterest expense of $176 million increased $2 million, or 1% from the year ago quarter

• Return on average common equity Tier 1 (CET1) improved to 10.6% from 9.9% in the year ago quarter

• Total dividends per common share of $0.12 were up 9% from the year ago quarter

• Capital ratios remain strong with a CET1 ratio of 9.9% at quarter end

SECOND QUARTER FINANCIAL RESULTS

Loans

Year-to-date average loans were up over 5% from the first half of last year. Second quarter average loans of $20.5 billion were up 4%, or $880 million from the year ago quarter and were up $449 million from the first quarter.

With respect to second quarter average balances:

• Consumer lending increased 10%, or $723 million from the year ago quarter and grew $363 million from the first quarter to $8.2 billion, primarily driven by the Company’s on balance sheet mortgage retention strategy.

• Commercial real estate lending increased 7%, or $310 million from the year ago quarter to $5.0 billion, primarily driven by increased construction lending, but decreased $36 million from the first quarter.

• Commercial and business lending decreased 2% from the year ago quarter to $7.3 billion, primarily driven by reductions in the oil and gas portfolio, however, commercial and business lending increased $122 million from the first quarter.

Deposits

Year-to-date average deposits were up over 5% from the first half of last year. Second quarter average deposits of $21.5 billion were up 6%, or $1.2 billion from the year ago quarter and were up modestly from the first quarter. The loan to deposit ratio was 96% at quarter-end.

With respect to second quarter average balances:

• Interest-bearing demand deposits increased 17%, or $632 million from the year ago quarter to $4.3 billion and increased $21 million from the first quarter.

• Savings and time deposits increased 10%, or $308 million from the year ago quarter and increased $214 million from the first quarter to $3.3 billion.

• Money market deposits increased 4%, or $372 million from the year ago quarter to $9.1 billion, but decreased $104 million from the first quarter.

• Noninterest-bearing demand deposits decreased 2%, or $78 million from the year ago quarter and decreased $74 million from the first quarter to $4.9 billion, reflecting expected seasonal patterns.

Net Interest Income and Net Interest Margin

Net interest income was up 4%, or $7 million from the year ago quarter, with net interest margin increasing 2 basis points year over year. Second quarter net interest income of $184 million was up 2%, or $4 million from the first quarter.

• The average yield on total loans increased 27 basis points to 3.62% from the year ago quarter and increased 11 basis points from the prior quarter.

• The average cost of interest-bearing deposits increased 20 basis points to 0.51% from the year ago quarter and increased 9 basis points from the prior quarter.

Noninterest Income

Second quarter total noninterest income of $82 million improved modestly from the year ago quarter and increased 3%, or $3 million from the prior quarter.

With respect to second quarter noninterest income line items:

• Card-based and other nondeposit fees were up $1 million from the year ago and prior quarters.

• Mortgage banking was up $1 million from the year ago quarter primarily driven by a favorable change in the mortgage servicing rights valuation.

• Combined, trust service fees and brokerage and annuity commissions were up over $1 million year over year and up from the first quarter.

Noninterest Expense

Second quarter total noninterest expense of $176 million was up $2 million, or 1% from the year ago quarter and up $3 million, or 2% from the prior quarter. The year-to-date efficiency ratio improved by over 200 basis points from the comparable period last year.

With respect to second quarter noninterest expense line items:

• Personnel expense was up $3 million from the year ago quarter primarily driven by increased health insurance costs.

• Technology expense was up $1 million from the year ago and prior quarters as the Company continues to invest in solutions that drive operational efficiency.

• All other noninterest expense line items, collectively, decreased $2 million from the year ago quarter and increased $2 million from the prior quarter.

Taxes

Second quarter income tax expense was $20 million with an effective tax rate of 26%, compared to $21 million and 30% in the year ago quarter, and $21 million and 27% in the prior quarter. The second quarter’s lower effective tax rate benefited from a partial release of reserves due a favorable state tax court ruling.

Credit

The second quarter provision for credit losses of $12 million was down $2 million from the year ago quarter, but up $3 million from the prior quarter.

��

• Potential problem loans of $263 million were down $194 million from the year ago quarter and down $77 million from the prior quarter.

• Nonaccrual loans of $232 million were down $51 million from the year ago quarter and down $28 million from the prior quarter. The nonaccrual loans to total loans ratio improved to 1.12% in the second quarter, compared to 1.43% in the year ago quarter, and 1.29% in the prior quarter.

• Second quarter net charge offs of $13 million were down $8 million from the year ago quarter and up $7 million from the prior quarter.

• The allowance for loan losses of $281 million was up $13 million from the year ago quarter and was down $2 million from the prior quarter. The allowance for loan losses to total loans ratio was 1.35% in the second quarter and the year ago quarter compared to 1.40% in the prior quarter.

• The allowance related to the oil and gas portfolio was $33 million at June 30, 2017 and represented 5.4% of total oil and gas loans.

Capital

The Company’s capital position remains strong, with a CET1 ratio of 9.9% at June 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.

SECOND 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, July 20, 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 second quarter 2017 earnings call. The second 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 nearly $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)	Jun 30, 2017			Mar 31, 2017			Seql Qtr $ Change			Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Comp Qtr $ Change
Assets
Cash and due from banks	$	396,677		$	332,601		$	64,076		$	446,558		$	356,047		$	333,000		$	63,677
Interest-bearing deposits in other financial institutions		126,232			337,167			(210,935	)		149,175			240,010			131,680			(5,448	)
Federal funds sold and securities purchased under agreements to resell		43,000			19,700			23,300			46,500			14,250			13,200			29,800
Investment securities held to maturity, at amortized cost		2,255,395			1,554,843			700,552			1,273,536			1,253,494			1,236,140			1,019,255
Investment securities available for sale, at fair value		3,687,470			4,300,490			(613,020	)		4,680,226			4,846,088			4,801,766			(1,114,296	)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost		181,180			139,273			41,907			140,001			140,215			194,501			(13,321	)
Residential loans held for sale(1)		41,620			34,051			7,569			108,010			213,883			253,682			(212,062	)
Commercial loans held for sale		4,772			2,901			1,871			12,474			16,912			30,694			(25,922	)
Loans		20,783,069			20,147,683			635,386			20,054,716			19,844,005			19,815,286			967,783
Allowance for loan losses		(281,101	)		(282,672	)		1,571			(278,335	)		(269,540	)		(267,780	)		(13,321	)
Loans, net		20,501,968			19,865,011			636,957			19,776,381			19,574,465			19,547,506			954,462
Premises and equipment, net		328,404			332,884			(4,480	)		330,315			329,726			331,427			(3,023	)
Goodwill		972,006			972,006			—			971,951			971,951			971,951			55
Mortgage servicing rights, net		59,395			60,702			(1,307	)		61,476			58,414			57,474			1,921
Other intangible assets, net		14,530			15,026			(496	)		15,377			15,902			16,427			(1,897	)
Trading assets		48,576			49,306			(730	)		52,398			60,780			77,112			(28,536	)
Other assets		1,107,800			1,093,896			13,904			1,074,937			1,060,627			1,042,139			65,661
Total assets	$	29,769,025		$	29,109,857		$	659,168		$	29,139,315		$	29,152,764		$	29,038,699		$	730,326
Liabilities and Stockholders’ Equity
Noninterest-bearing demand deposits	$	5,038,162		$	5,338,212		$	(300,050	)	$	5,392,208		$	5,337,677		$	5,039,336		$	(1,174	)
Interest-bearing deposits		16,580,018			16,489,823			90,195			16,496,240			16,410,035			15,253,514			1,326,504
Total deposits		21,618,180			21,828,035			(209,855	)		21,888,448			21,747,712			20,292,850			1,325,330
Federal funds purchased and securities sold under agreements to repurchase		607,669			650,188			(42,519	)		508,347			698,772			509,150			98,519
Other short-term funding		794,813			430,679			364,134			583,688			541,321			1,402,407			(607,594	)
Long-term funding		3,262,120			2,761,955			500,165			2,761,795			2,761,635			3,511,475			(249,355	)
Trading liabilities		47,143			47,561			(418	)		51,103			62,301			79,466			(32,323	)
Accrued expenses and other liabilities		247,598			246,645			953			254,622			243,908			213,204			34,394
Total liabilities		26,577,523			25,965,063			612,460			26,048,003			26,055,649			26,008,552			568,971
Stockholders’ Equity
Preferred equity		159,929			159,929			—			159,929			159,929			120,201			39,728
Common equity:
Common stock		1,630			1,630			—			1,630			1,630			1,630			—
Surplus		1,474,301			1,469,744			4,557			1,459,498			1,459,161			1,453,285			21,016
Retained earnings		1,747,632			1,709,514			38,118			1,695,764			1,662,778			1,629,915			117,717
Accumulated other comprehensive income (loss)		(53,470	)		(56,344	)		2,874			(54,679	)		(1,254	)		13,453			(66,923	)
Treasury stock, at cost		(138,520	)		(139,679	)		1,159			(170,830	)		(185,129	)		(188,337	)		49,817
Total common equity		3,031,573			2,984,865			46,708			2,931,383			2,937,186			2,909,946			121,627
Total stockholders’ equity		3,191,502			3,144,794			46,708			3,091,312			3,097,115			3,030,147			161,355
Total liabilities and stockholders’ equity	$	29,769,025		$	29,109,857		$	659,168		$	29,139,315		$	29,152,764		$	29,038,699		$	730,326

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

Page 6

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)

							Comp Qtr						YTD			YTD		Comp YTD
(in thousands, except per share data)	2Q17			2Q16			$ Change			% Change			Jun 2017			Jun 2016		$ Change			% Change
Interest Income
Interest and fees on loans	$	184,246		$	163,059		$	21,187			13	%	$	357,895		$	322,715	$	35,180			11	%
Interest and dividends on investment securities:
Taxable		23,658			24,270			(612	)		(3	)%		47,133			49,786		(2,653	)		(5	)%
Tax-exempt		8,143			7,894			249			3	%		16,272			15,724		548			3	%
Other interest		1,553			1,318			235			18	%		3,089			2,385		704			30	%
Total interest income		217,600			196,541			21,059			11	%		424,389			390,610		33,779			9	%
Interest Expense
Interest on deposits		21,180			11,678			9,502			81	%		38,104			23,444		14,660			63	%
Interest on Federal funds purchased and securities sold under agreements to repurchase		824			378			446			118	%		1,339			674		665			99	%
Interest on other short-term funding		1,827			845			982			116	%		2,907			1,360		1,547			114	%
Interest on long-term funding		9,950			6,923			3,027			44	%		17,946			16,428		1,518			9	%
Total interest expense		33,781			19,824			13,957			70	%		60,296			41,906		18,390			44	%
Net Interest Income		183,819			176,717			7,102			4	%		364,093			348,704		15,389			4	%
Provision for credit losses		12,000			14,000			(2,000	)		(14	)%		21,000			34,000		(13,000	)		(38	)%
Net interest income after provision for credit losses		171,819			162,717			9,102			6	%		343,093			314,704		28,389			9	%
Noninterest Income
Trust service fees		12,346			11,509			837			7	%		24,281			22,956		1,325			6	%
Service charges on deposit accounts		16,030			16,444			(414	)		(3	)%		32,386			32,717		(331	)		(1	)%
Card-based and other nondeposit fees		13,764			12,717			1,047			8	%		26,229			24,708		1,521			6	%
Insurance commissions		20,853			22,005			(1,152	)		(5	)%		42,473			43,387		(914	)		(2	)%
Brokerage and annuity commissions		4,346			4,098			248			6	%		8,679			7,892		787			10	%
Mortgage banking, net		5,027			4,067			960			24	%		9,606			8,271		1,335			16	%
Capital market fees, net		4,042			3,793			249			7	%		7,925			7,331		594			8	%
Bank owned life insurance income		3,899			2,973			926			31	%		6,514			7,743		(1,229	)		(16	)%
Asset gains (losses), net		(466	)		(343	)		(123	)		36	%		(700	)		181		(881	)		N/M
Investment securities gains (losses), net		356			3,116			(2,760	)		(89	)%		356			6,214		(5,858	)		(94	)%
Other		2,213			1,789			424			24	%		4,492			3,960		532			13	%
Total noninterest income		82,410			82,168			242			—	%		162,241			165,360		(3,119	)		(2	)%
Noninterest Expense
Personnel expense		104,683			102,129			2,554			3	%		209,102			203,527		5,575			3	%
Occupancy		12,832			13,215			(383	)		(3	)%		28,051			27,017		1,034			4	%
Equipment		5,234			5,396			(162	)		(3	)%		10,719			10,842		(123	)		(1	)%
Technology		15,473			14,450			1,023			7	%		29,893			28,714		1,179			4	%
Business development and advertising		7,152			6,591			561			9	%		12,987			14,802		(1,815	)		(12	)%
Other intangible amortization		496			539			(43	)		(8	)%		1,009			1,043		(34	)		(3	)%
Loan expense		2,974			3,442			(468	)		(14	)%		5,594			6,663		(1,069	)		(16	)%
Legal and professional fees		5,711			4,856			855			18	%		9,877			9,881		(4	)		—	%
Foreclosure / OREO expense, net		1,182			1,330			(148	)		(11	)%		2,687			3,207		(520	)		(16	)%
FDIC expense		8,000			8,750			(750	)		(9	)%		16,000			16,500		(500	)		(3	)%
Other		12,579			13,662			(1,083	)		(8	)%		24,088			26,135		(2,047	)		(8	)%
Total noninterest expense		176,316			174,360			1,956			1	%		350,007			348,331		1,676			—	%
Income before income taxes		77,913			70,525			7,388			10	%		155,327			131,733		23,594			18	%
Income tax expense		19,930			21,434			(1,504	)		(7	)%		41,074			40,108		966			2	%
Net income		57,983			49,091			8,892			18	%		114,253			91,625		22,628			25	%
Preferred stock dividends		2,339			2,169			170			8	%		4,669			4,367		302			7	%
Net income available to common equity	$	55,644		$	46,922		$	8,722			19	%	$	109,584		$	87,258	$	22,326			26	%
Earnings Per Common Share:
Basic	$	0.36		$	0.31		$	0.05			16	%	$	0.72		$	0.58	$	0.14			24	%
Diluted	$	0.36		$	0.31		$	0.05			16	%	$	0.71		$	0.58	$	0.13			22	%
Average Common Shares Outstanding:
Basic		151,573			148,511			3,062			2	%		151,196			148,556		2,640			2	%
Diluted		154,302			149,530			4,772			3	%		154,147			149,518		4,629			3	%
N/M - Not meaningful

Page 7

Associated Banc-Corp

Consolidated Statements of Income (Unaudited)—Quarterly Trend

							Seql Qtr														Comp Qtr
(In thousands, except per share data)	2Q17			1Q17			$ Change			% Change			4Q16		3Q16			2Q16			$ Change			% Change
Interest Income
Interest and fees on loans	$	184,246		$	173,649		$	10,597			6	%	$	169,473	$	167,350		$	163,059		$	21,187			13	%
Interest and dividends on investment securities:
Taxable		23,658			23,475			183			1	%		22,418		22,948			24,270			(612	)		(3	)%
Tax-exempt		8,143			8,129			14			—	%		8,184		8,141			7,894			249			3	%
Other interest		1,553			1,536			17			1	%		1,380		1,064			1,318			235			18	%
Total interest income		217,600			206,789			10,811			5	%		201,455		199,503			196,541			21,059			11	%
Interest Expense
Interest on deposits		21,180			16,924			4,256			25	%		13,773		13,118			11,678			9,502			81	%
Interest on Federal funds purchased and securities sold under agreements to repurchase		824			515			309			60	%		314		326			378			446			118	%
Interest on other short-term funding		1,827			1,080			747			69	%		458		296			845			982			116	%
Interest on long-term funding		9,950			7,996			1,954			24	%		6,875		7,229			6,923			3,027			44	%
Total interest expense		33,781			26,515			7,266			27	%		21,420		20,969			19,824			13,957			70	%
Net Interest Income		183,819			180,274			3,545			2	%		180,035		178,534			176,717			7,102			4	%
Provision for credit losses		12,000			9,000			3,000			33	%		15,000		21,000			14,000			(2,000	)		(14	)%
Net interest income after provision for credit losses		171,819			171,274			545			—	%		165,035		157,534			162,717			9,102			6	%
Noninterest Income
Trust service fees		12,346			11,935			411			3	%		12,211		11,700			11,509			837			7	%
Service charges on deposit accounts		16,030			16,356			(326	)		(2	)%		16,447		17,445			16,444			(414	)		(3	)%
Card-based and other nondeposit fees		13,764			12,465			1,299			10	%		12,592		12,777			12,717			1,047			8	%
Insurance commissions		20,853			21,620			(767	)		(4	)%		17,977		19,431			22,005			(1,152	)		(5	)%
Brokerage and annuity commissions		4,346			4,333			13			—	%		4,188		4,155			4,098			248			6	%
Mortgage banking, net		5,027			4,579			448			10	%		11,559		18,291			4,067			960			24	%
Capital market fees, net		4,042			3,883			159			4	%		7,716		7,012			3,793			249			7	%
Bank owned life insurance income		3,899			2,615			1,284			49	%		3,338		3,290			2,973			926			31	%
Asset gains (losses), net		(466	)		(234	)		(232	)		99	%		767		(1,034	)		(343	)		(123	)		36	%
Investment securities gains (losses), net		356			—			356			N/M			3,115		(13	)		3,116			(2,760	)		(89	)%
Other		2,213			2,279			(66	)		(3	)%		2,379		2,180			1,789			424			24	%
Total noninterest income		82,410			79,831			2,579			3	%		92,289		95,234			82,168			242			—	%
Noninterest Expense
Personnel expense		104,683			104,419			264			—	%		107,491		103,819			102,129			2,554			3	%
Occupancy		12,832			15,219			(2,387	)		(16	)%		13,690		15,362			13,215			(383	)		(3	)%
Equipment		5,234			5,485			(251	)		(5	)%		5,328		5,319			5,396			(162	)		(3	)%
Technology		15,473			14,420			1,053			7	%		14,413		14,173			14,450			1,023			7	%
Business development and advertising		7,152			5,835			1,317			23	%		6,298		5,251			6,591			561			9	%
Other intangible amortization		496			513			(17	)		(3	)%		525		525			539			(43	)		(8	)%
Loan expense		2,974			2,620			354			14	%		3,443		3,535			3,442			(468	)		(14	)%
Legal and professional fees		5,711			4,166			1,545			37	%		5,184		4,804			4,856			855			18	%
Foreclosure / OREO expense, net		1,182			1,505			(323	)		(21	)%		677		960			1,330			(148	)		(11	)%
FDIC expense		8,000			8,000			—			—	%		9,250		9,000			8,750			(750	)		(9	)%
Other		12,579			11,509			1,070			9	%		12,616		12,566			13,662			(1,083	)		(8	)%
Total noninterest expense		176,316			173,691			2,625			2	%		178,915		175,314			174,360			1,956			1	%
Income before income taxes		77,913			77,414			499			1	%		78,409		77,454			70,525			7,388			10	%
Income tax expense		19,930			21,144			(1,214	)		(6	)%		23,576		23,638			21,434			(1,504	)		(7	)%
Net income		57,983			56,270			1,713			3	%		54,833		53,816			49,091			8,892			18	%
Preferred stock dividends		2,339			2,330			9			—	%		2,348		2,188			2,169			170			8	%
Net income available to common equity	$	55,644		$	53,940		$	1,704			3	%	$	52,485	$	51,628		$	46,922		$	8,722			19	%
Earnings Per Common Share:
Basic	$	0.36		$	0.36		$	—			—	%	$	0.35	$	0.34		$	0.31		$	0.05			16	%
Diluted	$	0.36		$	0.35		$	0.01			3	%	$	0.34	$	0.34		$	0.31		$	0.05			16	%
Average Common Shares Outstanding:
Basic		151,573			150,815			758			1	%		149,253		148,708			148,511			3,062			2	%
Diluted		154,302			153,869			433			—	%		151,563		149,973			149,530			4,772			3	%
N/M - Not meaningful

Page 8

Associated Banc-Corp

Selected Quarterly Information

($ in millions, except share and per share, full time equivalent employee data and branch count)	YTD Jun 2017			YTD Jun 2016			2Q17			1Q17			4Q16			3Q16			2Q16
Per Common Share Data
Dividends	$	0.24		$	0.22		$	0.12		$	0.12		$	0.12		$	0.11		$	0.11
Market value:
High		26.50			18.84			25.50			26.50			25.15			19.91			18.84
Low		23.25			15.48			23.25			23.40			19.05			16.49			15.84
Close		25.20			17.15			25.20			24.40			24.70			19.59			17.15
Book value		19.70			19.27			19.70			19.42			19.27			19.42			19.27
Tangible book value / share	$	13.29		$	12.72		$	13.29		$	13.00		$	12.78		$	12.89		$	12.72
Performance Ratios (Annualized)
Return on average assets		0.79	%		0.66	%		0.80	%		0.79	%		0.75	%		0.74	%		0.69	%
Effective tax rate		26.44	%		30.45	%		25.58	%		27.31	%		30.07	%		30.52	%		30.39	%
Dividend payout ratio(1)		33.33	%		37.93	%		32.43	%		33.33	%		34.29	%		32.35	%		35.48	%
Net interest margin		2.83	%		2.81	%		2.83	%		2.84	%		2.80	%		2.77	%		2.81	%
Selected Trend Information
Average full time equivalent employees		4,361			4,394			4,352			4,370			4,439			4,477			4,415
Branch count								214			215			217			217			215
Trust assets under management, at market value							$	8,997		$	8,716		$	8,302		$	8,179		$	7,944
Mortgage loans originated for sale during period	$	220		$	518		$	119		$	101		$	287		$	466		$	324
Mortgage loan settlements during period	$	364		$	492		$	167		$	197		$	396		$	655		$	270
Mortgage portfolio serviced for others							$	7,768		$	7,909		$	7,975		$	8,011		$	7,776
Mortgage servicing rights, net / mortgage portfolio serviced for others								0.76	%		0.77	%		0.77	%		0.73	%		0.74	%
Shares outstanding, end of period								153,848			153,734			152,121			151,243			151,036
Selected Quarterly Ratios
Loans / deposits								96.14	%		92.30	%		91.62	%		91.25	%		97.65	%
Stockholders’ equity / assets								10.72	%		10.80	%		10.61	%		10.62	%		10.43	%
Risk-based Capital(2) (3)
Total risk-weighted assets							$	21,590		$	21,129		$	21,341		$	21,265		$	21,168
Common equity Tier 1							$	2,130		$	2,085		$	2,033		$	1,984		$	1,941
Common equity Tier 1 capital ratio								9.87	%		9.87	%		9.52	%		9.33	%		9.17	%
Tier 1 capital ratio								10.61	%		10.62	%		10.27	%		10.08	%		9.73	%
Total capital ratio								13.01	%		13.05	%		12.68	%		12.49	%		12.16	%
Tier 1 leverage ratio								8.09	%		8.05	%		7.83	%		7.64	%		7.43	%

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

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

(3) June 30, 2017 data is estimated.

Page 9

Associated Banc-Corp

Selected Asset Quality Information    

(In thousands)	Jun 30, 2017			Mar 31, 2017			Seql Qtr % Change			Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Comp Qtr % Change
Allowance for Loan Losses
Balance at beginning of period	$	282,672		$	278,335			2	%	$	269,540		$	267,780		$	277,370			2	%
Provision for loan losses		11,000			10,000			10	%		18,000			20,000			11,000			—	%
Charge offs		(15,376	)		(11,854	)		30	%		(11,609	)		(28,964	)		(24,621	)		(38	)%
Recoveries		2,805			6,191			(55	)%		2,404			10,724			4,031			(30	)%
Net charge offs		(12,571	)		(5,663	)		122	%		(9,205	)		(18,240	)		(20,590	)		(39	)%
Balance at end of period	$	281,101		$	282,672			(1	)%	$	278,335		$	269,540		$	267,780			5	%
Allowance for Unfunded Commitments
Balance at beginning of period	$	24,400		$	25,400			(4	)%	$	28,400		$	27,400		$	24,400			—	%
Provision for unfunded commitments		1,000			(1,000	)		(200	)%		(3,000	)		1,000			3,000			(67	)%
Balance at end of period	$	25,400		$	24,400			4	%	$	25,400		$	28,400		$	27,400			(7	)%
Allowance for credit losses	$	306,501		$	307,072			—	%	$	303,735		$	297,940		$	295,180			4	%
Provision for credit losses	$	12,000		$	9,000			33	%	$	15,000		$	21,000		$	14,000			(14	)%
Net Charge Offs	Jun 30, 2017			Mar 31, 2017			Seql Qtr % Change			Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Comp Qtr % Change
Commercial and industrial	$	(11,046	)	$	(4,368	)		153	%	$	(6,566	)	$	(16,407	)	$	(18,564	)		(40	)%
Commercial real estate—owner occupied		43			19			126	%		(221	)		(154	)		(20	)		N/M
Commercial and business lending		(11,003	)		(4,349	)		153	%		(6,787	)		(16,561	)		(18,584	)		(41	)%
Commercial real estate—investor		(126	)		(514	)		(75	)%		5			(564	)		(560	)		(78	)%
Real estate construction		(26	)		11			N/M			(86	)		(22	)		(219	)		(88	)%
Commercial real estate lending		(152	)		(503	)		(70	)%		(81	)		(586	)		(779	)		(80	)%
Total commercial		(11,155	)		(4,852	)		130	%		(6,868	)		(17,147	)		(19,363	)		(42	)%
Residential mortgage		(564	)		(128	)		N/M			(1,048	)		(540	)		(757	)		(25	)%
Home equity		54			173			(69	)%		(491	)		125			317			(83	)%
Other consumer		(906	)		(856	)		6	%		(798	)		(678	)		(787	)		15	%
Total consumer		(1,416	)		(811	)		75	%		(2,337	)		(1,093	)		(1,227	)		15	%
Total net charge offs	$	(12,571	)	$	(5,663	)		122	%	$	(9,205	)	$	(18,240	)	$	(20,590	)		(39	)%
Net Charge Offs to Average Loans (in basis points)*	Jun 30, 2017			Mar 31, 2017						Dec 31, 2016			Sep 30, 2016			Jun 30, 2016
Commercial and industrial		(69	)		(28	)					(40	)		(98	)		(114	)
Commercial real estate—owner occupied		2			1						(10	)		(7	)		(1	)
Commercial and business lending		(60	)		(24	)					(36	)		(87	)		(100	)
Commercial real estate—investor		(2	)		(6	)					N/M			(6	)		(7	)
Real estate construction		(1	)		N/M						(3	)		(1	)		(7	)
Commercial real estate lending		(1	)		(4	)					(1	)		(5	)		(7	)
Total commercial		(36	)		(16	)					(22	)		(55	)		(64	)
Residential mortgage		(3	)		(1	)					(7	)		(3	)		(5	)
Home equity		2			8						(21	)		5			13
Other consumer		(98	)		(90	)					(80	)		(67	)		(78	)
Total consumer		(7	)		(4	)					(12	)		(6	)		(7	)
Total net charge offs		(25	)		(11	)					(18	)		(36	)		(42	)
Credit Quality	Jun 30, 2017			Mar 31, 2017			Seql Qtr % Change			Dec 31, 2016			Sep 30, 2016			Jun 30, 2016			Comp Qtr % Change
Nonaccrual loans	$	231,888		$	259,991			(11	)%	$	275,303		$	289,911		$	282,602			(18	)%
Other real estate owned (OREO)		7,782			7,540			3	%		10,274			14,499			13,669			(43	)%
Other nonperforming assets		7,418			7,418			—	%		7,418			—			—			N/M
Total nonperforming assets	$	247,088		$	274,949			(10	)%	$	292,995		$	304,410		$	296,271			(17	)%
Loans 90 or more days past due and still accruing	$	1,535		$	1,720			(11	)%	$	1,613		$	1,511		$	1,494			3	%
Allowance for loan losses to loans		1.35	%		1.40	%					1.39	%		1.36	%		1.35	%
Allowance for loan losses to nonaccrual loans		121.22	%		108.72	%					101.10	%		92.97	%		94.76	%
Nonaccrual loans to total loans		1.12	%		1.29	%					1.37	%		1.46	%		1.43	%
Nonperforming assets to total loans plus OREO		1.19	%		1.36	%					1.46	%		1.53	%		1.49	%
Nonperforming assets to total assets		0.83	%		0.94	%					1.01	%		1.04	%		1.02	%
Year-to-date net charge offs to average loans *		0.18	%		0.11	%					0.33	%		0.38	%		0.39	%

* Annualized

N/M = Not meaningful

Page 10

Associated Banc-Corp

Selected Asset Quality Information (continued)

(in thousands)	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Nonaccrual loans
Commercial and industrial	$	141,475	$	164,891		(14	)%	$	183,371	$	205,902	$	193,439		(27	)%
Commercial real estate—owner occupied		15,800		17,925		(12	)%		9,544		6,995		9,635		64	%
Commercial and business lending		157,275		182,816		(14	)%		192,915		212,897		203,074		(23	)%
Commercial real estate—investor		7,206		8,273		(13	)%		18,051		8,028		11,528		(37	)%
Real estate construction		1,717		1,247		38	%		844		864		957		79	%
Commercial real estate lending		8,923		9,520		(6	)%		18,895		8,892		12,485		(29	)%
Total commercial		166,198		192,336		(14	)%		211,810		221,789		215,559		(23	)%
Residential mortgage		51,975		54,183		(4	)%		50,236		53,475		52,300		(1	)%
Home equity		13,482		13,212		2	%		13,001		14,347		14,363		(6	)%
Other consumer		233		260		(10	)%		256		300		380		(39	)%
Total consumer		65,690		67,655		(3	)%		63,493		68,122		67,043		(2	)%
Total nonaccrual loans	$	231,888	$	259,991		(11	)%	$	275,303	$	289,911	$	282,602		(18	)%
Restructured loans (accruing)	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Commercial and industrial	$	31,540	$	30,852		2	%	$	31,884	$	30,248	$	29,179		8	%
Commercial real estate—owner occupied		4,145		5,532		(25	)%		5,490		7,445		7,509		(45	)%
Commercial and business lending		35,685		36,384		(2	)%		37,374		37,693		36,688		(3	)%
Commercial real estate—investor		14,628		14,563		—	%		15,289		15,352		20,191		(28	)%
Real estate construction		321		327		(2	)%		359		365		372		(14	)%
Commercial real estate lending		14,949		14,890		—	%		15,648		15,717		20,563		(27	)%
Total commercial		50,634		51,274		(1	)%		53,022		53,410		57,251		(12	)%
Residential mortgage		17,624		18,535		(5	)%		18,100		18,049		18,314		(4	)%
Home equity		7,985		8,209		(3	)%		7,756		7,685		6,955		15	%
Other consumer		1,082		1,041		4	%		979		926		906		19	%
Total consumer		26,691		27,785		(4	)%		26,835		26,660		26,175		2	%
Total restructured loans (accruing)	$	77,325	$	79,059		(2	)%	$	79,857	$	80,070	$	83,426		(7	)%
Restructured loans included in nonaccrual loans (not included with restructed loans (accruing))	$	51,715	$	78,902		(34	)%	$	29,385	$	31,758	$	34,841		48	%
Accruing Loans30-89 Days Past Due	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Commercial and industrial	$	1,255	$	1,675		(25	)%	$	1,413	$	950	$	2,124		(41	)%
Commercial real estate—owner occupied		1,284		970		32	%		1,384		869		193		N/M
Commercial and business lending		2,539		2,645		(4	)%		2,797		1,819		2,317		10	%
Commercial real estate—investor		899		1,122		(20	)%		931		630		2,715		(67	)%
Real estate construction		135		431		(69	)%		369		402		524		(74	)%
Commercial real estate lending		1,034		1,553		(33	)%		1,300		1,032		3,239		(68	)%
Total commercial		3,573		4,198		(15	)%		4,097		2,851		5,556		(36	)%
Residential mortgage		9,165		7,243		27	%		8,142		6,697		7,382		24	%
Home equity		5,924		4,512		31	%		5,849		5,473		7,730		(23	)%
Other consumer		1,746		1,658		5	%		3,189		2,046		1,895		(8	)%
Total consumer		16,835		13,413		26	%		17,180		14,216		17,007		(1	)%
Total accruing loans30-89 days past due	$	20,408	$	17,611		16	%	$	21,277	$	17,067	$	22,563		(10	)%
Potential Problem Loans	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Commercial and industrial	$	142,607	$	218,930		(35	)%	$	227,196	$	351,290	$	379,818		(62	)%
Commercial real estate—owner occupied		60,724		58,994		3	%		64,524		47,387		45,671		33	%
Commercial and business lending		203,331		277,924		(27	)%		291,720		398,677		425,489		(52	)%
Commercial real estate—investor		48,569		49,217		(1	)%		51,228		36,765		25,081		94	%
Real estate construction		8,901		10,141		(12	)%		2,465		1,929		2,117		N/M
Commercial real estate lending		57,470		59,358		(3	)%		53,693		38,694		27,198		111	%
Total commercial		260,801		337,282		(23	)%		345,413		437,371		452,687		(42	)%
Residential mortgage		1,576		2,155		(27	)%		5,615		3,226		3,953		(60	)%
Home equity		208		220		(5	)%		114		78		94		121	%
Total consumer		1,784		2,375		(25	)%		5,729		3,304		4,047		(56	)%
Total potential problem loans	$	262,585	$	339,657		(23	)%	$	351,142	$	440,675	$	456,734		(43	)%

N/M = Not meaningful

Page 11

Associated Banc-Corp

Net Interest Income Analysis—FullyTax-Equivalent Basis — Sequential and Comparable Quarter    

	Quarter ended,
	June 30, 2017							March 31, 2017							June 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	$	7,321,523	$	65,507		3.59	%	$	7,199,481	$	60,680		3.42	%	$	7,474,633	$	59,088		3.18	%
Commercial real estate lending		4,964,257		47,562		3.84	%		4,999,994		45,135		3.66	%		4,654,111		40,169		3.47	%
Total commercial		12,285,780		113,069		3.69	%		12,199,475		105,815		3.52	%		12,128,744		99,257		3.29	%
Residential mortgage		6,957,865	��	56,097		3.23	%		6,564,600		53,306		3.25	%		6,129,924		48,382		3.16	%
Retail		1,278,345		16,048		5.03	%		1,308,650		15,450		4.74	%		1,383,317		16,378		4.74	%
Total loans		20,521,990		185,214		3.62	%		20,072,725		174,571		3.51	%		19,641,985		164,017		3.35	%
Investment securities:
Taxable		4,781,488		23,658		1.98	%		4,830,421		23,475		1.94	%		4,967,437		24,270		1.95	%
Tax-exempt(1)		1,143,736		12,459		4.36	%		1,138,010		12,438		4.37	%		1,064,252		12,077		4.54	%
Other short-term investments		297,341		1,553		2.09	%		298,158		1,536		2.08	%		294,375		1,318		1.80	%
Investments and other		6,222,565		37,670		2.42	%		6,266,589		37,449		2.39	%		6,326,064		37,665		2.38	%
Total earning assets		26,744,555	$	222,884		3.34	%		26,339,314	$	212,020		3.24	%		25,968,049	$	201,682		3.12	%
Other assets, net		2,454,351							2,441,013							2,674,427
Total assets	$	29,198,906						$	28,780,327						$	28,642,476
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	1,541,129	$	201		0.05	%	$	1,465,811	$	188		0.05	%	$	1,445,020	$	228		0.06	%
Interest-bearing demand		4,272,620		5,506		0.52	%		4,251,357		4,210		0.40	%		3,640,733		2,144		0.24	%
Money market		9,064,874		11,763		0.52	%		9,169,141		9,388		0.42	%		8,692,782		6,309		0.29	%
Time deposits		1,752,255		3,710		0.85	%		1,613,331		3,138		0.79	%		1,540,424		2,997		0.78	%
Total interest-bearing deposits		16,630,878		21,180		0.51	%		16,499,640		16,924		0.42	%		15,318,959		11,678		0.31	%
Federal funds purchased and securities sold under agreements to repurchase		489,571		824		0.67	%		495,311		515		0.42	%		674,360		378		0.23	%
Other short-term funding		842,305		1,827		0.87	%		683,306		1,080		0.64	%		1,209,511		845		0.28	%
Total short-term funding		1,331,876		2,651		0.80	%		1,178,617		1,595		0.55	%		1,883,871		1,223		0.26	%
Long-term funding		2,932,348		9,950		1.36	%		2,761,850		7,996		1.17	%		3,052,581		6,923		0.91	%
Total short and long-term funding		4,264,224		12,601		1.18	%		3,940,467		9,591		0.98	%		4,936,452		8,146		0.66	%
Total interest-bearing liabilities		20,895,102	$	33,781		0.65	%		20,440,107	$	26,515		0.52	%		20,255,411	$	19,824		0.39	%
Noninterest-bearing demand deposits		4,892,271							4,966,082							4,969,994
Other liabilities		246,395							250,747							228,027
Stockholders’ equity		3,165,138							3,123,391							3,189,044
Total liabilities and stockholders’ equity	$	29,198,906						$	28,780,327						$	28,642,476
Interest rate spread						2.69	%						2.72	%						2.73	%
Net free funds						0.14	%						0.12	%						0.08	%
Fullytax-equivalent net interest income and net interest margin			$	189,103		2.83	%			$	185,505		2.84	%			$	181,858		2.81	%
Fullytax-equivalent adjustment				5,284							5,231							5,141
Net interest income			$	183,819						$	180,274						$	176,717

(1) The yield ontax-exempt loans and securities is computed on a fullytax-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 12

Associated Banc-Corp

Net Interest Income Analysis—FullyTax-Equivalent Basis — Year Over Year

	Six Months ended June 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	$	7,260,839	$	126,187		3.50	%	$	7,297,847	$	116,380		3.21	%
Commercial real estate lending		4,982,027		92,697		3.75	%		4,561,821		79,158		3.49	%
Total commercial		12,242,866		218,884		3.60	%		11,859,668		195,538		3.31	%
Residential mortgage		6,762,319		109,404		3.24	%		6,025,102		96,130		3.19	%
Retail		1,293,414		31,497		4.88	%		1,397,638		32,984		4.73	%
Total loans		20,298,599		359,785		3.56	%		19,282,408		324,652		3.38	%
Investment securities:
Taxable		4,805,819		47,133		1.96	%		5,000,754		49,786		1.99	%
Tax-exempt (1)		1,140,889		24,897		4.36	%		1,054,731		24,057		4.56	%
Other short-term investments		297,747		3,089		2.09	%		282,318		2,385		1.70	%
Investments and other		6,244,455		75,119		2.41	%		6,337,803		76,228		2.41	%
Total earning assets		26,543,054	$	434,904		3.29	%		25,620,211	$	400,880		3.14	%
Other assets, net		2,447,719							2,450,451
Total assets	$	28,990,773						$	28,070,662
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	1,503,678	$	389		0.05	%	$	1,406,333	$	464		0.07	%
Interest-bearing demand		4,262,047		9,716		0.46	%		3,430,571		4,176		0.24	%
Money market		9,116,719		21,150		0.47	%		9,062,514		12,753		0.28	%
Time deposits		1,683,177		6,849		0.82	%		1,549,351		6,051		0.79	%
Total interest-bearing deposits		16,565,621		38,104		0.46	%		15,448,769		23,444		0.31	%
Federal funds purchased and securities sold under agreements to repurchase		492,425		1,339		0.55	%		617,007		674		0.22	%
Other short-term funding		763,245		2,907		0.77	%		993,704		1,360		0.28	%
Total short-term funding		1,255,670		4,246		0.68	%		1,610,711		2,034		0.25	%
Long-term funding		2,847,570		17,946		1.27	%		2,817,560		16,428		1.17	%
Total short and long-term funding		4,103,240		22,192		1.09	%		4,428,271		18,462		0.84	%
Total interest-bearing liabilities		20,668,861	$	60,296		0.59	%		19,877,040	$	41,906		0.42	%
Noninterest-bearing demand deposits		4,928,973							4,983,197
Other liabilities		248,559							230,528
Stockholders’ equity		3,144,380							2,979,897
Total liabilities and stockholders’ equity	$	28,990,773						$	28,070,662
Interest rate spread						2.70	%						2.72	%
Net free funds						0.13	%						0.09	%
Fullytax-equivalent net interest income and net interest margin			$	374,608		2.83	%			$	358,974		2.81	%
Fullytax-equivalent adjustment				10,515							10,270
Net interest income			$	364,093						$	348,704

(1) The yield on tax exempt loans and securities is computed on a fullytax-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 13

Associated Banc-Corp

Loan and Deposit Composition

(In thousands)    

Period End Loan Composition	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Commercial and industrial	$	6,571,000	$	6,300,646		4	%	$	6,489,014	$	6,721,557	$	6,701,986		(2	)%
Commercial real estate—owner occupied		845,336		878,391		(4	)%		897,724		892,678		921,736		(8	)%
Commercial and business lending		7,416,336		7,179,037		3	%		7,386,738		7,614,235		7,623,722		(3	)%
Commercial real estate—investor		3,329,585		3,415,355		(3	)%		3,574,732		3,530,370		3,495,791		(5	)%
Real estate construction		1,651,805		1,553,205		6	%		1,432,497		1,314,431		1,285,573		28	%
Commercial real estate lending		4,981,390		4,968,560		—	%		5,007,229		4,844,801		4,781,364		4	%
Total commercial		12,397,726		12,147,597		2	%		12,393,967		12,459,036		12,405,086		—	%
Residential mortgage		7,115,457		6,715,282		6	%		6,332,327		6,034,166		6,035,720		18	%
Home equity		897,111		911,969		(2	)%		934,443		951,594		968,771		(7	)%
Other consumer		372,775		372,835		—	%		393,979		399,209		405,709		(8	)%
Total consumer		8,385,343		8,000,086		5	%		7,660,749		7,384,969		7,410,200		13	%
Total loans	$	20,783,069	$	20,147,683		3	%	$	20,054,716	$	19,844,005	$	19,815,286		5	%
Period End Deposit and Customer Funding Composition	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Noninterest-bearing demand	$	5,038,162	$	5,338,212		(6	)%	$	5,392,208	$	5,337,677	$	5,039,336		—	%
Savings		1,552,820		1,530,155		1	%		1,431,494		1,441,187		1,451,801		7	%
Interest-bearing demand		3,858,739		4,736,236		(19	)%		4,687,656		4,548,390		3,789,138		2	%
Money market		9,228,129		8,608,523		7	%		8,770,963		8,894,357		8,448,543		9	%
Brokered CDs		131,184		54,993		139	%		52,725		44,373		46,268		184	%
Other time		1,809,146		1,559,916		16	%		1,553,402		1,481,728		1,517,764		19	%
Total deposits		21,618,180		21,828,035		(1	)%		21,888,448		21,747,712		20,292,850		7	%
Customer funding		262,318		326,823		(20	)%		300,197		477,607		464,880		(44	)%
Total deposits and customer funding	$	21,880,498	$	22,154,858		(1	)%	$	22,188,645	$	22,225,319	$	20,757,730		5	%
Network transaction deposits(1)	$	3,220,956	$	3,417,380		(6	)%	$	3,895,467	$	3,730,513	$	3,141,214		3	%
Total deposits and customer funding, excluding Brokered CDs and network transaction deposits	$	18,528,358	$	18,682,485		(1	)%	$	18,240,453	$	18,450,433	$	17,570,248		5	%
Quarter Average Loan Composition	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Commercial and industrial	$	6,449,250	$	6,313,389		2	%	$	6,514,974	$	6,674,688	$	6,559,613		(2	)%
Commercial real estate—owner occupied		872,273		886,092		(2	)%		891,836		902,782		915,020		(5	)%
Commercial and business lending		7,321,523		7,199,481		2	%		7,406,810		7,577,470		7,474,633		(2	)%
Commercial real estate—investor		3,359,817		3,502,769		(4	)%		3,546,559		3,532,861		3,448,741		(3	)%
Real estate construction		1,604,440		1,497,225		7	%		1,368,084		1,322,966		1,205,370		33	%
Commercial real estate lending		4,964,257		4,999,994		(1	)%		4,914,643		4,855,827		4,654,111		7	%
Total commercial		12,285,780		12,199,475		1	%		12,321,453		12,433,297		12,128,744		1	%
Residential mortgage		6,957,865		6,564,600		6	%		6,317,769		6,255,264		6,129,924		14	%
Home equity		906,208		923,896		(2	)%		942,620		961,034		975,313		(7	)%
Other consumer		372,137		384,754		(3	)%		395,228		403,181		408,004		(9	)%
Total consumer		8,236,210		7,873,250		5	%		7,655,617		7,619,479		7,513,241		10	%
Total loans	$	20,521,990	$	20,072,725		2	%	$	19,977,070	$	20,052,776	$	19,641,985		4	%
Quarter Average Deposit Composition	Jun 30, 2017		Mar 31, 2017		Seql Qtr % Change			Dec 31, 2016		Sep 30, 2016		Jun 30, 2016		Comp Qtr % Change
Noninterest-bearing demand	$	4,892,271	$	4,966,082		(1	)%	$	5,294,078	$	5,161,802	$	4,969,994		(2	)%
Savings		1,541,129		1,465,811		5	%		1,451,803		1,448,223		1,445,020		7	%
Interest-bearing demand		4,272,620		4,251,357		1	%		4,140,072		4,151,708		3,640,733		17	%
Money market		9,064,874		9,169,141		(1	)%		9,296,364		9,088,943		8,692,782		4	%
Time deposits		1,752,255		1,613,331		9	%		1,560,145		1,553,349		1,540,424		14	%
Total deposits	$	21,523,149	$	21,465,722		—	%	$	21,742,462	$	21,404,025	$	20,288,953		6	%

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

Page 14

Associated Banc-Corp

Non-GAAP Financial Measures Reconciliation

($ in millions)	YTD Jun 2017			YTD Jun 2016			2Q17			1Q17			4Q16			3Q16			2Q16
Tangible Common Equity Reconciliation(1)
Common equity							$	3,032		$	2,985		$	2,931		$	2,937		$	2,910
Goodwill and other intangible assets, net								(987	)		(987	)		(987	)		(988	)		(988	)
Tangible common equity							$	2,045		$	1,998		$	1,944		$	1,949		$	1,922
Tangible Assets Reconciliation(1)
Total assets							$	29,769		$	29,110		$	29,139		$	29,153		$	29,039
Goodwill and other intangible assets, net								(987	)		(987	)		(987	)		(988	)		(988	)
Tangible assets							$	28,782		$	28,123		$	28,152		$	28,165		$	28,051
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation (1)
Common equity	$	2,985		$	2,859		$	3,005		$	2,963		$	2,925		$	2,911		$	2,869
Goodwill and other intangible assets, net		(987	)		(989	)		(987	)		(987	)		(988	)		(988	)		(989	)
Tangible common equity		1,998			1,870			2,018			1,976			1,937			1,923			1,880
Less: Accumulated other comprehensive income / loss		52			2			50			54			28			(3	)		1
Less: Deferred tax assets / deferred tax liabilities, net		31			33			32			32			33			33			32
Average common equity Tier 1	$	2,081		$	1,905		$	2,100		$	2,062		$	1,998		$	1,953		$	1,913
Selected Trend Information(2)
Trust service fees							$	12		$	12		$	12		$	12		$	12
Service charges on deposit accounts								16			16			16			18			16
Card-based and other nondeposit fees								14			13			13			13			13
Insurance commissions								21			22			18			19			22
Brokerage and annuity commissions								4			4			4			4			4
Fee-based revenue								67			67			63			66			67
Other								15			13			29			29			15
Total noninterest income							$	82		$	80		$	92		$	95		$	82
Selected Equity and Performance Ratios (1) (3)
Tangible common equity / tangible assets								7.11	%		7.10	%		6.91	%		6.92	%		6.85	%
Return on average equity		7.33	%		6.18	%		7.35	%		7.31	%		7.07	%		7.03	%		6.19	%
Return on average tangible common equity		11.06	%		9.38	%		11.06	%		11.07	%		10.78	%		10.68	%		10.04	%
Return on average common equity Tier 1		10.62	%		9.21	%		10.63	%		10.61	%		10.45	%		10.52	%		9.86	%
Efficiency Ratio Reconciliation(4)
Federal Reserve efficiency ratio		66.54	%		69.18	%		66.69	%		66.39	%		65.35	%		64.40	%		69.34	%
Fullytax-equivalent adjustment		(1.30	)%		(1.36	)%		(1.30	)%		(1.30	)%		(1.25	)%		(1.21	)%		(1.36	)%
Other intangible amortization		(0.19	)%		(0.21	)%		(0.18	)%		(0.20	)%		(0.20	)%		(0.19	)%		(0.21	)%
Fullytax-equivalent efficiency ratio		65.05	%		67.61	%		65.21	%		64.89	%		63.90	%		63.00	%		67.77	%

(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 fullytax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of fullytax-equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net. Management believes the fullytax-equivalent efficiency ratio, which adjusts net interest income for thetax-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 andtax-exempt sources.

Page 15