ASSOCIATED BANC-CORP Stock Forecasts | ASB EPS & Price Predictions

EX-99.1 2 asb12312019ex991.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1



	NEWS RELEASE Investor Contact: Robb Timme, Senior 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 Full Year 2019 Earnings of $1.91 Per Common Share,

or $1.97 Per Common Share Excluding $12 million in Acquisition and Restructuring Related Costs¹

GREEN BAY, Wis. -- January 23, 2020 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $312 million, or $1.91 per common share for the year ended December 31, 2019. These amounts compare to net income available to common equity of $323 million, or $1.89 per common share for the year ended December 31, 2018. The Company reported earnings of $0.43 per common share for the quarter ended December 31, 2019, compared to $0.51 per common share for the quarter ended December 31, 2018.

“In 2019, we significantly repositioned the balance sheet as we faced an interest rate environment that was meaningfully different than the one we anticipated at the beginning of the year. We increased our mix of low-cost core deposits, decreased our reliance on higher-cost funding, and sold lower-yielding securities. These actions helped us defend our net interest margin," said President and CEO Philip B. Flynn. "Additionally, we focused our efforts on controlling costs and were able to reduce noninterest expense from the previous year. We are optimistic that the changes we made in 2019 will continue to benefit Associated in 2020 and beyond."

2019 SUMMARY (all comparisons to the previous year)


•	Average loans of $23.1 billion were up 2%, or $0.4 billion


•	Average deposits of $24.7 billion were up 3%, or $0.7 billion


•	Net interest income of $836 million decreased $44 million, or 5%


•	Net interest margin of 2.86% declined 11 basis points from 2.97%


•	Provision for credit losses of $16 million compared to zero


•	Noninterest income of $381 million increased 7%, or $25 million


•	Noninterest expense of $794 million was down 3%, or $28 million


•	Income before income taxes of $407 million decreased 2%, or $7 million


•	During the year, the Company repurchased over 8 million shares, or $177 million, of common stock


•	Total dividends paid per common share were $0.69, up 11%


•	Tangible book value per share of $15.28, up 10%


•	Return on average common equity Tier 1 of 12.6% decreased 0.6%

¹This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide greater understanding of ongoing operations and enhance comparability of results with prior periods. See page 10 of the attached tables for a reconciliation of GAAP financial measures to non-GAAP financial measures which exclude acquisition and restructuring related costs.

2019 FULL YEAR and FOURTH QUARTER FINANCIAL RESULTS

Loans

Full year 2019 average loans of $23.1 billion were up 2%, or $405 million from 2018, driven by commercial and business lending. With respect to full year 2019 average balances by loan category compared to 2018:


•	Commercial and business lending increased $682 million, or 9%, to $8.4 billion, primarily due to solid growth in general commercial and power & utilities lending.


•	Consumer lending was essentially flat at $9.5 billion and included the sale of approximately $240 million of prepayment sensitive mortgages in the third quarter of 2019.


•	Commercial real estate lending decreased $283 million, or 5%, to $5.2 billion, reflecting elevated paydown activity in late 2018 and the first quarter of 2019.

Fourth quarter 2019 average loans of $22.8 billion were down $21 million from the year ago quarter and declined $469 million from the third quarter.

With respect to fourth quarter 2019 average balances by loan category:


•	Commercial and business lending increased $189 million from the year ago quarter but decreased $294 million from the third quarter to $8.2 billion. Power & utilities and mortgage warehouse drove the increase from the year ago quarter while the decrease from the third quarter was due to lower general commercial and REIT lending.


•	Consumer lending decreased $195 million from the year ago quarter and was down $213 million from the third quarter to $9.4 billion. The decreases resulted from the sale of $240 million of prepayment sensitive residential mortgages late in the third quarter of 2019.


•	Commercial real estate lending decreased $15 million from the year ago quarter to $5.2 billion. However, CRE increased $38 million from the third quarter as strong production continued to outpace paydown activity.

For 2020, the Company expects to achieve 2% to 4% average loan growth.

Investments

Full year 2019 average investment securities of $6.2 billion were reduced $718 million, or 10% from 2018.

Fourth quarter 2019 average investment securities of $5.6 billion were decreased by $1.3 billion, or 19% from the year ago quarter, and decreased by $397 million from the third quarter as the Company continued to use its investment portfolio as a source of funds during the fourth quarter, further repositioning its balance sheet for a declining rate environment.


•	Taxable securities decreased $1.5 billion from the year ago quarter and decreased $408 million from the third quarter as lower yielding, primarily mortgage backed securities were sold.


•	Tax-exempt securities increased $188 million from the year ago quarter and increased $11 million from the third quarter as the Company shifted its investment portfolio mix toward longer duration higher-yielding municipal securities.

For 2020, the Company expects the ratio of investments to total assets to remain above 17%.

Deposits

Full year 2019 average deposits of $24.7 billion increased 3%, or $664 million from 2018, driven by the Huntington branch acquisition.

With respect to full year 2019 average balances by deposit category as compared to 2018:


•	Savings increased $561 million, or 30% to $2.4 billion.


•	Interest-bearing demand deposits increased $313 million, or 7% to $5.1 billion.


•	Time deposits increased $298 million, or 11% to $3.1 billion.


•	Noninterest-bearing demand deposits decreased $18 million to $5.2 billion.


•	Network transaction deposits decreased $235 million, or 11% to $1.9 billion.


•	Money market deposits decreased $255 million, or 4% to $7.0 billion.

Fourth quarter 2019 average deposits of $24.1 billion were down $127 million, or 1% from the year ago quarter and were down $1.1 billion compared to the third quarter. The decrease from the third quarter reflects the Company's balance sheet repositioning strategy of selling lower-yielding securities and reducing certain higher-cost, non-core customer funding from interest-bearing deposits, time deposits, network transaction deposits and money market accounts.

With respect to fourth quarter 2019 average balances by deposit category:


•	Savings increased $719 million from the year ago quarter and increased $96 million from the third quarter to $2.7 billion.


•	Noninterest-bearing demand deposits increased $104 million from the year ago quarter and increased $146 million from the third quarter to $5.5 billion.


•	Interest-bearing demand deposits increased $301 million from the year ago quarter but decreased $315 million from the third quarter to $5.1 billion.


•	Time deposits decreased $314 million from the year ago quarter and decreased $361 million from the third quarter to $2.7 billion.


•	Network transaction deposits decreased $442 million from the year ago quarter and decreased $326 million from the third quarter to $1.4 billion.


•	Money market deposits decreased $495 million from the year ago quarter and decreased $339 million from the third quarter to $6.6 billion.

Net Interest Income and Net Interest Margin

Full year 2019 net interest income of $836 million was down 5%, or $44 million from 2018. Net interest margin of 2.86% was down 11 basis points from the prior year. The decreases in net interest income and margin were driven by decreases in LIBOR rates, which impact the Company's commercial loan yield, outpacing reductions in funding costs.


•	The average yield on total commercial loans decreased one basis point from the prior year to 4.72%.


•	The average cost of interest-bearing liabilities increased 27 basis points from the prior year to 1.43%.


•	The net free funds benefit, the net margin increase from noninterest-bearing deposits, increased five basis points from the prior year.

Fourth quarter 2019 net interest income of $200 million was down 11%, or $24 million, and the net interest margin decreased 19 basis points to 2.83% from the year ago quarter. Fourth quarter 2019 net interest income decreased 3%, or $6 million, but the net interest margin increased two basis points from the prior quarter. The lower net interest income from the prior quarter was driven by lower earning asset balances as the Company repositioned its balance sheet for a lower rate environment. The increase in net interest margin reflects the Company's successful efforts to reduce funding costs over the last several quarters.


•	The average yield on total earning assets for the fourth quarter of 2019 decreased 33 basis points to 3.78% from the year ago quarter and decreased 16 basis points from the prior quarter.


•	The average cost of total interest-bearing liabilities for the fourth quarter of 2019 decreased 16 basis points to 1.23% from the year ago quarter and decreased 21 basis points from the prior quarter.


•	The net free funds benefit decreased two basis points in the fourth quarter of 2019 compared to the year ago quarter and decreased three basis points from the prior quarter.

The Company expects 2020 net interest margin to be between 2.80% and 2.85%, assuming a stable interest rate environment.

Noninterest Income

Full year 2019 noninterest income of $381 million increased $25 million from the prior year.


•	Net mortgage banking income increased $12 million from the prior year, driven by higher refinance activity in 2019.


•	Gains on sales of investment securities increased $8 million from the prior year, reflecting our balance sheet deleveraging strategy

Fourth quarter 2019 total noninterest income of $93 million increased $9 million from the year ago quarter but decreased $8 million from the prior quarter.

With respect to fourth quarter 2019 noninterest income line items:


•	Net mortgage banking income was up $3 million from the year ago quarter but was down $4 million from the previous quarter. Mortgage banking income was elevated in the third quarter due to increased gain on sale of mortgages including the sale of approximately $240 million of loans from our portfolio.


•	Capital markets income was up $3 million from both the year ago quarter and the previous quarter driven by higher swap income and favorable credit valuation adjustments in the fourth quarter of 2019.


•	Asset gains were up $3 million from the year ago quarter and were essentially flat compared to the previous quarter.


•	Gains on sales of investment securities were essentially flat compared to the year ago quarter but were down $4 million from the third quarter when we sold securities as part of our deleveraging strategy.

The Company expects to earn between $375 million and $385 million of noninterest income in 2020, excluding investment securities gains and losses.

Noninterest Expense

Full year 2019 noninterest expense of $794 million decreased 3%, or $28 million from the prior year. Included in noninterest expense figures are acquisition and restructuring related costs of $12 million in 2019 and $31 million in 2018.

With respect to full year 2019 noninterest expense line items:


•	Personnel costs increased $4 million from the prior year.


•	Technology expense increased $10 million from the prior year, driven by investments in solutions to enhance operational efficiency and the customer experience.


•	FDIC assessment decreased $14 million from 2018 with the removal of the FDIC surcharge.

Fourth quarter 2019 total noninterest expense of $204 million increased 5%, or $10 million from the year ago quarter and increased $3 million from the prior quarter.

With respect to fourth quarter 2019 noninterest expense line items:


•	Personnel expense increased $4 million from the year ago quarter but decreased $3 million from the prior quarter.


•	Technology expense increased $5 million from the year ago quarter and increased $2 million from the prior quarter.


•	Occupancy expense increased $3 million from the year ago quarter and increased $2 million from the prior quarter.


•	The Company's FDIC assessment decreased $2 million from the year ago quarter with the removal of the FDIC surcharge and was unchanged from the prior quarter.

The Company expects its 2020 noninterest expense will be between $790 million and $795 million, including acquisition related costs in connection with the First Staunton transaction.

Taxes

Full year 2019 effective tax rate was 20% compared to 19% in 2018. The fourth quarter 2019 effective tax rate was 19% compared to 22% in the year ago quarter and 20% in the prior quarter.

The Company expects its 2020 effective tax rate will be in the range of 19%-21%.

Credit

Full year 2019 provision for credit losses was $16 million, up from zero in the prior year.

The fourth quarter 2019 provision for credit losses was zero, down from $1 million in the year ago quarter and down from $2 million in the prior quarter.

With respect to fourth quarter 2019 credit quality:


•	Potential problem loans of $157 million were down $93 million, or 37%, from the year ago quarter but up $24 million, or 18%, from the prior quarter.


•	Nonaccrual loans of $118 million were down $10 million from the year ago quarter and down $11 million from the prior quarter. The nonaccrual loans to total loans ratio was 0.52% in the fourth quarter, down from 0.56% in the year ago quarter and 0.57% in the prior quarter.


•	Net charge offs of $14 million were up $14 million from the year ago quarter but down $6 million from the prior quarter as de-risking of the oil & gas portfolio nears completion.


•	The allowance for loan losses of $201 million was down $37 million from the year ago quarter and down $13 million from the prior quarter. The allowance for loan losses to total loans ratio was 0.88% in the third quarter, down from 1.04% in the year ago quarter, and 0.94% in the prior quarter.

As a result of implementing Current Expected Credit Loss accounting standards, the Company expects to incur an after-tax charge of $70 million to $80 million which will decrease the opening equity balance as of January 1, 2020.

Capital

The Company’s capital position remains strong, with a CET1 capital ratio of 10.2% at December 31, 2019. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.

During 2019, the Company repurchased over eight million shares, or $177 million, of common stock at an average price of $21.62 per share. This included fourth quarter repurchases of over two million shares, or $48 million, of common stock at an average price of $21.22 per share.

FOURTH QUARTER 2019 EARNINGS RELEASE CONFERENCE CALL

The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, January 23, 2020. 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 fourth quarter 2019 earnings call. The fourth quarter 2019 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 $32 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 more than 240 banking locations serving more than 120 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,” "target," “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. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

# # #



Associated Banc-Corp Consolidated Balance Sheets (Unaudited)
($ in thousands)	Dec 31, 2019			Sep 30, 2019			Seql Qtr $ Change			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Comp Qtr $ Change
Assets
Cash and due from banks	$	373,380		$	523,435		$	(150,055	)	$	382,985		$	334,095		$	507,187		$	(133,807	)
Interest-bearing deposits in other financial institutions	207,624			236,010			(28,386		)	172,708			270,843			221,226			(13,602		)
Federal funds sold and securities purchased under agreements to resell	7,740			100			7,640			1,385			41,405			148,285			(140,545		)
Investment securities held to maturity, at amortized cost	2,205,083			2,200,419			4,664			2,806,064			2,846,689			2,740,511			(535,428		)
Investment securities available for sale, at fair value	3,262,586			3,436,289			(173,703		)	3,283,456			3,829,388			3,946,941			(684,355		)
Equity securities	15,090			15,096			(6		)	15,066			1,609			1,568			13,522
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	227,347			207,443			19,904			202,758			216,940			250,534			(23,187		)
Residential loans held for sale	136,280			137,655			(1,375		)	129,303			81,392			64,321			71,959
Commercial loans held for sale	15,000			11,597			3,403			11,000			15,467			14,943			57
Loans	22,821,440			22,754,710			66,730			23,249,967			23,148,359			22,940,429			(118,989		)
Allowance for loan losses	(201,371		)	(214,425		)	13,054			(233,659		)	(235,081		)	(238,023		)	36,652
Loans, net	22,620,068			22,540,285			79,783			23,016,308			22,913,278			22,702,406			(82,338		)
Bank and corporate owned life insurance	671,948			670,739			1,209			668,638			665,976			663,203			8,745
Investment in unconsolidated subsidiaries	279,969			256,220			23,749			222,812			194,670			161,181			118,788
Premises and equipment	435,284			436,268			(984		)	432,058			411,040			363,225			72,059
Goodwill	1,176,230			1,176,230			—			1,176,019			1,168,944			1,169,023			7,207
Mortgage servicing rights, net	67,306			68,168			(862		)	66,175			66,626			68,193			(887		)
Other intangible assets, net	88,301			91,089			(2,788		)	93,915			73,610			75,836			12,465
Other assets	597,242			589,420			7,822			566,216			549,356			516,538			80,704
Total assets	$	32,386,478		$	32,596,460		$	(209,982	)	$	33,246,869		$	33,681,329		$	33,615,122		$	(1,228,644	)
Liabilities and stockholders’ equity
Noninterest-bearing demand deposits	$	5,450,709		$	5,503,223		$	(52,514	)	$	5,354,987		$	5,334,154		$	5,698,530		$	(247,821	)
Interest-bearing deposits	18,328,355			18,919,339			(590,984		)	19,919,235			20,198,903			19,198,863			(870,508		)
Total deposits	23,779,064			24,422,562			(643,498		)	25,274,222			25,533,057			24,897,393			(1,118,329		)
Federal funds purchased and securities sold under agreements to repurchase	433,097			78,028			355,069			83,195			127,098			111,651			321,446
Commercial paper	32,016			30,416			1,600			28,787			32,019			45,423			(13,407		)
FHLB advances	3,180,967			2,877,727			303,240			2,742,941			2,944,769			3,574,371			(393,404		)
Other long-term funding	549,343			796,799			(247,456		)	796,403			796,007			795,611			(246,268		)
Accrued expenses and other liabilities	489,868			470,073			19,795			421,526			412,510			409,787			80,081
Total liabilities	28,464,355			28,675,605			(211,250		)	29,347,075			29,845,459			29,834,235			(1,369,880		)
Stockholders’ equity
Preferred equity	256,716			256,716			—			256,716			256,716			256,716			—
Common equity	3,665,407			3,664,139			1,269			3,643,077			3,579,153			3,524,171			141,236
Total stockholders’ equity	3,922,124			3,920,855			1,269			3,899,794			3,835,870			3,780,888			141,236
Total liabilities and stockholders’ equity	$	32,386,478		$	32,596,460		$	(209,982	)	$	33,246,869		$	33,681,329		$	33,615,122		$	(1,228,644	)

Numbers may not sum due to rounding.

Page 1



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)	4Q19		4Q18			$ Change			% Change		Dec 2019		Dec 2018			$ Change			% Change
Interest income
Interest and fees on loans	$	229,883	$	260,661		$	(30,778	)	(12	)%	$	998,099	$	976,990		$	21,109		2	%
Interest and dividends on investment securities
Taxable	21,056		29,119			(8,063		)	(28	)%	100,304		119,741			(19,437		)	(16	)%
Tax-exempt	14,615		12,899			1,716			13	%	57,565		44,782			12,783			29	%
Other interest	3,556		3,257			299			9	%	16,643		12,623			4,020			32	%
Total interest income	269,110		305,936			(36,826		)	(12	)%	1,172,610		1,154,137			18,473			2	%
Interest expense
Interest on deposits	45,877		54,159			(8,282		)	(15	)%	237,286		176,118			61,168			35	%
Interest on federal funds purchased and securities sold under agreements to repurchase	521		442			79			18	%	1,579		2,006			(427		)	(21	)%
Interest on other short-term funding	28		36			(8		)	(22	)%	149		186			(37		)	(20	)%
Interest on FHLB advances	16,623		19,948			(3,325		)	(17	)%	69,816		73,668			(3,852		)	(5	)%
Interest on long-term funding	5,918		7,396			(1,478		)	(20	)%	28,106		22,579			5,527			24	%
Total interest expense	68,967		81,980			(13,013		)	(16	)%	336,936		274,557			62,379			23	%
Net interest income	200,142		223,955			(23,813		)	(11	)%	835,674		879,580			(43,906		)	(5	)%
Provision for credit losses	—		1,000			(1,000		)	(100	)%	16,000		—			16,000			N/M
Net interest income after provision for credit losses	200,142		222,955			(22,813		)	(10	)%	819,674		879,580			(59,906		)	(7	)%
Noninterest income
Insurance commissions and fees	19,701		21,232			(1,531		)	(7	)%	89,104		89,511			(407		)	—	%
Wealth management fees^(a)	21,582		20,364			1,218			6	%	83,467		82,562			905			1	%
Service charges and deposit account fees	16,032		16,361			(329		)	(2	)%	63,135		66,075			(2,940		)	(4	)%
Card-based fees	9,906		10,316			(410		)	(4	)%	39,755		39,656			99			—	%
Other fee-based revenue	4,696		5,260			(564		)	(11	)%	18,942		17,818			1,124			6	%
Capital markets, net	7,647		4,931			2,716			55	%	19,862		20,120			(258		)	(1	)%
Mortgage banking, net	6,760		3,271			3,489			107	%	31,878		19,911			11,967			60	%
Bank and corporate owned life insurance	3,364		3,247			117			4	%	14,845		13,951			894			6	%
Asset gains (losses), net^(b)	398		(2,456		)	2,854			N/M		2,713		(1,103		)	3,816			N/M
Investment securities gains (losses), net	26		—			26			N/M		5,957		(1,985		)	7,942			N/M
Other	2,822		1,522			1,300			85	%	11,165		9,051			2,114			23	%
Total noninterest income	92,934		84,046			8,888			11	%	380,824		355,568			25,256			7	%
Noninterest expense
Personnel	120,614		116,535			4,079			4	%	487,063		482,676			4,387			1	%
Technology	22,731		17,944			4,787			27	%	82,429		72,674			9,755			13	%
Occupancy	16,933		14,174			2,759			19	%	62,399		59,121			3,278			6	%
Business development and advertising	8,316		8,950			(634		)	(7	)%	29,600		30,923			(1,323		)	(4	)%
Equipment	5,970		5,897			73			1	%	23,550		23,243			307			1	%
Legal and professional	5,559		5,888			(329		)	(6	)%	19,901		23,061			(3,160		)	(14	)%
Loan and foreclosure costs	3,262		1,566			1,696			108	%	8,861		7,410			1,451			20	%
FDIC assessment	4,000		5,750			(1,750		)	(30	)%	16,250		30,000			(13,750		)	(46	)%
Other intangible amortization	2,712		2,233			479			21	%	9,948		8,159			1,789			22	%
Acquisition related costs^(c)	1,325		(981		)	2,306			N/M		7,320		29,002			(21,682		)	(75	)%
Other	12,187		15,207			(3,020		)	(20	)%	46,666		55,530			(8,864		)	(16	)%
Total noninterest expense	203,609		193,163			10,446			5	%	793,988		821,799			(27,811		)	(3	)%
Income before income taxes	89,467		113,839			(24,372		)	(21	)%	406,509		413,349			(6,840		)	(2	)%
Income tax expense	17,364		24,854			(7,490		)	(30	)%	79,720		79,786			(66		)	—	%
Net income	72,103		88,985			(16,882		)	(19	)%	326,790		333,562			(6,772		)	(2	)%
Preferred stock dividends	3,801		3,707			94			3	%	15,202		10,784			4,418			41	%
Net income available to common equity	$	68,303	$	85,278		$	(16,975	)	(20	)%	$	311,587	$	322,779		$	(11,192	)	(3	)%
Earnings per common share
Basic	$	0.43	$	0.52		$	(0.09	)	(17	)%	$	1.93	$	1.92		$	0.01		1	%
Diluted	$	0.43	$	0.51		$	(0.08	)	(16	)%	$	1.91	$	1.89		$	0.02		1	%
Average common shares outstanding
Basic	156,994		164,662			(7,668		)	(5	)%	160,534		167,345			(6,811		)	(4	)%
Diluted	158,472		166,394			(7,922		)	(5	)%	161,932		169,732			(7,800		)	(5	)%

N/M = Not meaningful

Numbers may not sum due to rounding.

(a) Includes trust, asset management, brokerage, and annuity fees.


(b)	YTD Dec 2019 includes less than $1 million of Huntington related asset losses; YTD Dec 2018 includes approximately $2 million of Bank Mutual acquisition related asset losses net of asset gains.


(c)	Includes Bank Mutual, Huntington branch, and First Staunton acquisition related costs only.

Page 2



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)	4Q19		3Q19		$ Change			% Change		2Q19		1Q19		4Q18			$ Change			% Change
Interest income
Interest and fees on loans	$	229,883	$	248,579	$	(18,696	)	(8	)%	$	260,784	$	258,853	$	260,661		$	(30,778	)	(12	)%
Interest and dividends on investment securities
Taxable	21,056		23,485		(2,429		)	(10	)%	26,710		29,053		29,119			(8,063		)	(28	)%
Tax-exempt	14,615		14,491		124			1	%	14,643		13,816		12,899			1,716			13	%
Other interest	3,556		4,865		(1,309		)	(27	)%	3,995		4,226		3,257			299			9	%
Total interest income	269,110		291,420		(22,310		)	(8	)%	306,133		305,948		305,936			(36,826		)	(12	)%
Interest expense
Interest on deposits	45,877		61,585		(15,708		)	(26	)%	67,050		62,773		54,159			(8,282		)	(15	)%
Interest on federal funds purchased and securities sold under agreements to repurchase	521		145		376			N/M		286		627		442			79			18	%
Interest on other short-term funding	28		33		(5		)	(15	)%	37		51		36			(8		)	(22	)%
Interest on FHLB advances	16,623		15,896		727			5	%	17,744		19,554		19,948			(3,325		)	(17	)%
Interest on long-term funding	5,918		7,396		(1,478		)	(20	)%	7,396		7,396		7,396			(1,478		)	(20	)%
Total interest expense	68,967		85,054		(16,087		)	(19	)%	92,513		90,401		81,980			(13,013		)	(16	)%
Net interest income	200,142		206,365		(6,223		)	(3	)%	213,619		215,547		223,955			(23,813		)	(11	)%
Provision for credit losses	—		2,000		(2,000		)	(100	)%	8,000		6,000		1,000			(1,000		)	(100	)%
Net interest income after provision for credit losses	200,142		204,365		(4,223		)	(2	)%	205,619		209,547		222,955			(22,813		)	(10	)%
Noninterest income
Insurance commissions and fees	19,701		20,954		(1,253		)	(6	)%	22,985		25,464		21,232			(1,531		)	(7	)%
Wealth management fees^(a)	21,582		21,015		567			3	%	20,691		20,180		20,364			1,218			6	%
Service charges and deposit account fees	16,032		16,561		(529		)	(3	)%	15,426		15,115		16,361			(329		)	(2	)%
Card-based fees	9,906		10,456		(550		)	(5	)%	10,131		9,261		10,316			(410		)	(4	)%
Other fee-based revenue	4,696		5,085		(389		)	(8	)%	5,178		3,983		5,260			(564		)	(11	)%
Capital markets, net	7,647		4,300		3,347			78	%	4,726		3,189		4,931			2,716			55	%
Mortgage banking, net	6,760		10,940		(4,180		)	(38	)%	9,466		4,712		3,271			3,489			107	%
Bank and corporate owned life insurance	3,364		4,337		(973		)	(22	)%	3,352		3,792		3,247			117			4	%
Asset gains (losses), net^(b)	398		877		(479		)	(55	)%	871		567		(2,456		)	2,854			N/M
Investment securities gains (losses), net	26		3,788		(3,762		)	(99	)%	463		1,680		—			26			N/M
Other	2,822		2,537		285			11	%	2,547		3,260		1,522			1,300			85	%
Total noninterest income	92,934		100,850		(7,916		)	(8	)%	95,837		91,202		84,046			8,888			11	%
Noninterest expense
Personnel	120,614		123,170		(2,556		)	(2	)%	123,228		120,050		116,535			4,079			4	%
Technology	22,731		20,572		2,159			10	%	20,114		19,012		17,944			4,787			27	%
Occupancy	16,933		15,164		1,769			12	%	13,830		16,472		14,174			2,759			19	%
Business development and advertising	8,316		7,991		325			4	%	6,658		6,636		8,950			(634		)	(7	)%
Equipment	5,970		6,335		(365		)	(6	)%	5,577		5,668		5,897			73			1	%
Legal and professional	5,559		5,724		(165		)	(3	)%	4,668		3,951		5,888			(329		)	(6	)%
Loan and foreclosure costs	3,262		1,638		1,624			99	%	1,814		2,146		1,566			1,696			108	%
FDIC assessment	4,000		4,000		—			—	%	4,500		3,750		5,750			(1,750		)	(30	)%
Other intangible amortization	2,712		2,686		26			1	%	2,324		2,226		2,233			479			21	%
Acquisition related costs^(c)	1,325		1,629		(304		)	(19	)%	3,734		632		(981		)	2,306			N/M
Other	12,187		12,021		166			1	%	11,331		11,128		15,207			(3,020		)	(20	)%
Total noninterest expense	203,609		200,930		2,679			1	%	197,779		191,671		193,163			10,446			5	%
Income before income taxes	89,467		104,286		(14,819		)	(14	)%	103,678		109,078		113,839			(24,372		)	(21	)%
Income tax expense	17,364		20,947		(3,583		)	(17	)%	19,017		22,392		24,854			(7,490		)	(30	)%
Net income	72,103		83,339		(11,236		)	(13	)%	84,661		86,686		88,985			(16,882		)	(19	)%
Preferred stock dividends	3,801		3,801		—			—	%	3,801		3,801		3,707			94			3	%
Net income available to common equity	$	68,303	$	79,539	$	(11,236	)	(14	)%	$	80,860	$	82,885	$	85,278		$	(16,975	)	(20	)%
Earnings per common share
Basic	$	0.43	$	0.50	$	(0.07	)	(14	)%	$	0.49	$	0.50	$	0.52		$	(0.09	)	(17	)%
Diluted	$	0.43	$	0.49	$	(0.06	)	(12	)%	$	0.49	$	0.50	$	0.51		$	(0.08	)	(16	)%
Average common shares outstanding
Basic	156,994		159,126		(2,132		)	(1	)%	162,180		163,928		164,662			(7,668		)	(5	)%
Diluted	158,472		160,382		(1,910		)	(1	)%	163,672		165,433		166,394			(7,922		)	(5	)%

N/M = Not meaningful

Numbers may not sum due to rounding.

(a) Includes trust, asset management, brokerage, and annuity fees.


(b)	2Q19 includes less than $1 million of Huntington related asset losses.

Page 3



Associated Banc-Corp Selected Quarterly Information
($ in millions except per share data; shares repurchased and outstanding in thousands)	YTD Dec 2019			YTD Dec 2018			4Q19			3Q19			2Q19			1Q19			4Q18
Per common share data
Dividends	$	0.69		$	0.62		$	0.18		$	0.17		$	0.17		$	0.17		$	0.17
Market value:
High	23.67			28.85			22.51			21.67			23.15			23.67			26.55
Low	18.64			18.72			18.96			18.64			19.81			19.77			18.72
Close	22.04			19.79			22.04			20.25			21.14			21.35			19.79
Book value	23.32			21.43			23.32			23.00			22.40			21.77			21.43
Tangible book value / share	15.28			13.86			15.28			15.05			14.59			14.21			13.86
Performance ratios (annualized)
Return on average assets	0.99		%	1.01		%	0.89		%	1.00		%	1.02		%	1.05		%	1.07		%
Effective tax rate	19.61		%	19.30		%	19.41		%	20.09		%	18.34		%	20.53		%	21.83		%
Dividend payout ratio^(a)	35.75		%	32.29		%	41.86		%	34.00		%	34.69		%	34.00		%	32.69		%
Net interest margin	2.86		%	2.97		%	2.83		%	2.81		%	2.88		%	2.90		%	3.02		%
Selected trend information
Average full time equivalent employees^(b)	4,702			4,699			4,696			4,782			4,666			4,660			4,659
Branch count							248			248			247			233			236
Assets under management, at market value^(c)							$	12,104		$	11,604		$	11,475		$	11,192		$	10,291
Mortgage loans originated for sale during period	$	1,089		$	1,092		$	265		$	365		$	297		$	163		$	245
Mortgage loan settlements during period^(d)	$	1,317		$	1,132		$	268		$	617		$	272		$	160		$	305
Mortgage portfolio serviced for others							$	8,485		$	8,688		$	8,504		$	8,543		$	8,601
Mortgage servicing rights, net / mortgage portfolio serviced for others							0.79		%	0.78		%	0.78		%	0.78		%	0.79		%
Shares repurchased during period	8,211			9,470			2,256			2,892			1,754			1,308			3,764
Shares outstanding, end of period	157,171			164,440			157,171			159,291			162,662			164,418			164,440
Selected quarterly ratios
Loans / deposits							95.97		%	93.17		%	91.99		%	90.66		%	92.14		%
Stockholders’ equity / assets							12.11		%	12.03		%	11.73		%	11.39		%	11.25		%
Risk-based capital^(e)(f)
Total risk-weighted assets							$	24,296		$	24,313		$	24,466		$	24,121		$	23,843
Common equity Tier 1							$	2,481		$	2,482		$	2,481		$	2,485		$	2,450
Common equity Tier 1 capital ratio							10.21		%	10.21		%	10.14		%	10.30		%	10.27		%
Tier 1 capital ratio							11.26		%	11.26		%	11.19		%	11.36		%	11.35		%
Total capital ratio							13.21		%	13.26		%	13.25		%	13.48		%	13.49		%
Tier 1 leverage ratio							8.83		%	8.57		%	8.49		%	8.50		%	8.49		%
Loans
Recorded investment on loans							$	22,753		$	22,690		$	23,180		$	23,078		$	22,872
Net unaccreted purchase discount on performing loans^(g)							(12		)	(14		)	(16		)	(16		)	(18		)
Net other deferred costs							80			79			85			86			87
Loans							$	22,821		$	22,755		$	23,250		$	23,148		$	22,940

Numbers may not sum due to rounding.


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


(b)	Average full time equivalent employees without overtime.


(c)	Excludes assets held in brokerage accounts.


(d)	During the third quarter of 2019, the Corporation sold approximately $240 million of portfolio mortgages that resulted in an increase in 3Q19 and YTD Dec 2019 periods.


(e)	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.


(f)	December 31, 2019 data is estimated.


(g)	Includes loans obtained from the acquisition of Bank Mutual and the Huntington branch acquisition.

Page 4



Associated Banc-Corp Selected Asset Quality Information
($ in thousands)	Dec 31, 2019			Sep 30, 2019			Seql Qtr % Change		Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Comp Qtr % Change
Allowance for loan losses
Balance at beginning of period	$	214,425		$	233,659		(8	)%	$	235,081		$	238,023		$	236,250		(9	)%
Provision for loan losses	1,000			1,000			—	%	12,000			4,500			2,000			(50	)%
Charge offs	(16,752		)	(26,313		)	(36	)%	(15,761		)	(15,486		)	(6,151		)	172	%
Recoveries	2,699			6,079			(56	)%	2,339			8,044			5,923			(54	)%
Net charge offs	(14,054		)	(20,234		)	(31	)%	(13,421		)	(7,442		)	(228		)	N/M
Balance at end of period	$	201,371		$	214,425		(6	)%	$	233,659		$	235,081		$	238,023		(15	)%
Allowance for unfunded commitments
Balance at beginning of period	$	22,907		$	21,907		5	%	$	25,836		$	24,336		$	25,336		(10	)%
Provision for unfunded commitments	(1,000		)	1,000			N/M		(4,000		)	1,500			(1,000		)	—	%
Amount recorded at acquisition	—			—			N/M		70			—			—			N/M
Balance at end of period	$	21,907		$	22,907		(4	)%	$	21,907		$	25,836		$	24,336		(10	)%
Allowance for credit losses	$	223,278		$	237,331		(6	)%	$	255,566		$	260,917		$	262,359		(15	)%
Provision for credit losses	$	—		$	2,000		(100	)%	$	8,000		$	6,000		$	1,000		(100	)%
($ in thousands)	Dec 31, 2019			Sep 30, 2019			Seql Qtr % Change		Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Comp Qtr % Change
Net (charge offs) recoveries
Commercial and industrial	$	(11,917	)	$	(19,918	)	(40	)%	$	(12,177	)	$	(7,428	)	$	2,974		N/M
Commercial real estate—owner occupied	—			1,483			(100	)%	(104		)	1,193			282			(100	)%
Commercial and business lending	(11,917		)	(18,435		)	(35	)%	(12,281		)	(6,235		)	3,256			N/M
Commercial real estate—investor	—			(3		)	(100	)%	3			31			(2,107		)	(100	)%
Real estate construction	72			20			N/M		151			—			106			(32	)%
Commercial real estate lending	72			17			N/M		153			31			(2,001		)	N/M
Total commercial	(11,845		)	(18,418		)	(36	)%	(12,127		)	(6,203		)	1,255			N/M
Residential mortgage	(1,415		)	(393		)	N/M		(365		)	(457		)	(94		)	N/M
Home equity	480			(275		)	N/M		239			309			(270		)	N/M
Other consumer	(1,274		)	(1,148		)	11	%	(1,169		)	(1,090		)	(1,118		)	14	%
Total consumer	(2,208		)	(1,816		)	22	%	(1,294		)	(1,239		)	(1,482		)	49	%
Total net (charge offs) recoveries	$	(14,054	)	$	(20,234	)	(31	)%	$	(13,421	)	$	(7,442	)	$	(228	)	N/M

(In basis points)	Dec 31, 2019			Sep 30, 2019					Jun 30, 2019			Mar 31, 2019			Dec 31, 2018
Net charge offs to average loans (annualized)
Commercial and industrial	(65		)	(104		)			(64		)	(40		)	16
Commercial real estate—owner occupied	—			63					(4		)	53			13
Commercial and business lending	(58		)	(86		)			(57		)	(30		)	16
Commercial real estate—investor	—			—					—			—			(22		)
Real estate construction	2			1					5			—			3
Commercial real estate lending	1			—					1			—			(15		)
Total commercial	(35		)	(53		)			(35		)	(19		)	4
Residential mortgage	(7		)	(2		)			(2		)	(2		)	—
Home equity	22			(12		)			11			14			(12		)
Other consumer	(145		)	(129		)			(132		)	(123		)	(121		)
Total consumer	(9		)	(8		)			(5		)	(5		)	(6		)
Total net charge offs	(24		)	(35		)			(23		)	(13		)	—

($ in thousands)	Dec 31, 2019			Sep 30, 2019			Seql Qtr % Change		Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Comp Qtr % Change
Credit Quality
Nonaccrual loans	$	118,380		$	128,939		(8	)%	$	166,707		$	155,556		$	127,901		(7	)%
Other real estate owned (OREO)	21,101			19,625			8	%	18,355			12,286			11,984			76	%
Other nonperforming assets	6,004			6,004			—	%	—			—			—			N/M
Total nonperforming assets	$	145,485		$	154,568		(6	)%	$	185,062		$	167,843		$	139,885		4	%

Loans 90 or more days past due and still accruing	$	2,259		$	1,986		14	%	$	2,088		$	2,218		$	2,165		4	%
Allowance for loan losses to loans	0.88		%	0.94		%			1.00		%	1.02		%	1.04		%
Net unaccreted purchase discount to net purchased loans	1.21		%	1.33		%			1.35		%	1.41		%	1.44		%
Allowance for loan losses to nonaccrual loans	170.10		%	166.30		%			140.16		%	151.12		%	186.10		%
Nonaccrual loans to total loans	0.52		%	0.57		%			0.72		%	0.67		%	0.56		%
Nonperforming assets to total loans plus OREO	0.64		%	0.68		%			0.80		%	0.72		%	0.61		%
Nonperforming assets to total assets	0.45		%	0.47		%			0.56		%	0.50		%	0.42		%
Year-to-date net charge offs to average loans (annualized)	0.24		%	0.24		%			0.18		%	0.13		%	0.13		%

Page 5



Associated Banc-Corp Selected Asset Quality Information (continued)
(In thousands)	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Nonaccrual loans
Commercial and industrial	$	46,312	$	56,536	(18	)%	$	84,151	$	73,379	$	41,021	13	%
Commercial real estate—owner occupied	67		68		(1	)%	571		890		3,957		(98	)%
Commercial and business lending	46,380		56,604		(18	)%	84,722		74,269		44,978		3	%
Commercial real estate—investor	4,409		4,800		(8	)%	1,485		776		1,952		126	%
Real estate construction	493		542		(9	)%	427		739		979		(50	)%
Commercial real estate lending	4,902		5,342		(8	)%	1,912		1,516		2,931		67	%
Total commercial	51,282		61,946		(17	)%	86,634		75,784		47,909		7	%
Residential mortgage	57,844		57,056		1	%	68,166		67,323		67,574		(14	)%
Home equity	9,104		9,828		(7	)%	11,835		12,300		12,339		(26	)%
Other consumer	152		109		39	%	72		149		79		92	%
Total consumer	67,099		66,993		—	%	80,073		79,772		79,992		(16	)%
Total nonaccrual loans	$	118,380	$	128,939	(8	)%	$	166,707	$	155,556	$	127,901	(7	)%

	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Restructured loans (accruing)
Commercial and industrial	$	16,678	$	15,398	8	%	$	16,850	$	15,443	$	25,478	(35	)%
Commercial real estate—owner occupied	1,676		1,912		(12	)%	1,970		2,026		2,080		(19	)%
Commercial and business lending	18,353		17,311		6	%	18,820		17,469		27,558		(33	)%
Commercial real estate—investor	293		304		(4	)%	315		1,700		799		(63	)%
Real estate construction	298		227		31	%	232		311		311		(4	)%
Commercial real estate lending	591		531		11	%	547		2,011		1,110		(47	)%
Total commercial	18,944		17,842		6	%	19,367		19,480		28,668		(34	)%
Residential mortgage	3,955		3,228		23	%	17,645		18,226		16,036		(75	)%
Home equity	1,896		2,017		(6	)%	7,247		7,688		7,385		(74	)%
Other consumer	1,246		1,243		—	%	1,222		1,154		1,174		6	%
Total consumer	7,097		6,487		9	%	26,114		27,068		24,595		(71	)%
Total restructured loans (accruing)	$	26,041	$	24,329	7	%	$	45,481	$	46,548	$	53,263	(51	)%
Nonaccrual restructured loans (included in nonaccrual loans)	$	22,494	$	16,293	38	%	$	24,332	$	24,172	$	26,292	(14	)%
	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Accruing Loans 30-89 Days Past Due
Commercial and industrial	$	821	$	426	93	%	$	4,909	$	3,295	$	525	56	%
Commercial real estate—owner occupied	1,369		2,646		(48	)%	2,018		6,066		2,699		(49	)%
Commercial and business lending	2,190		3,073		(29	)%	6,926		9,361		3,224		(32	)%
Commercial real estate—investor	1,812		636		185	%	1,382		1,090		3,767		(52	)%
Real estate construction	97		595		(84	)%	151		6,773		330		(71	)%
Commercial real estate lending	1,909		1,232		55	%	1,532		7,863		4,097		(53	)%
Total commercial	4,099		4,304		(5	)%	8,459		17,224		7,321		(44	)%
Residential mortgage	9,274		8,063		15	%	9,756		13,274		9,706		(4	)%
Home equity	5,647		4,798		18	%	5,827		6,363		6,049		(7	)%
Other consumer	2,083		2,203		(5	)%	1,838		2,364		2,269		(8	)%
Total consumer	17,005		15,063		13	%	17,422		22,001		18,024		(6	)%
Total accruing loans 30-89 days past due	$	21,104	$	19,367	9	%	$	25,881	$	39,225	$	25,345	(17	)%

	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Potential Problem Loans
Commercial and industrial	$	106,308	$	59,427	79	%	$	58,658	$	111,772	$	116,578	(9	)%
Commercial real estate—owner occupied	19,889		22,624		(12	)%	24,237		48,929		55,964		(64	)%
Commercial and business lending	126,197		82,051		54	%	82,895		160,701		172,542		(27	)%
Commercial real estate—investor	29,449		49,353		(40	)%	77,766		70,613		67,481		(56	)%
Real estate construction	—		544		(100	)%	3,166		4,600		3,834		(100	)%
Commercial real estate lending	29,449		49,897		(41	)%	80,932		75,213		71,315		(59	)%
Total commercial	155,646		131,948		18	%	163,828		235,914		243,856		(36	)%
Residential mortgage	1,451		1,242		17	%	1,983		5,351		5,975		(76	)%
Home equity	—		—		N/M		32		91		103		(100	)%
Total consumer	1,451		1,242		17	%	2,014		5,443		6,078		(76	)%
Total potential problem loans	$	157,097	$	133,189	18	%	$	165,842	$	241,357	$	249,935	(37	)%

N/M = Not meaningful

Numbers may not sum due to rounding.

Page 6



Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter
	Three Months Ended
	December 31, 2019						September 30, 2019						December 31, 2018
($ 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^{(a) (b) (c)}
Commercial and business lending	$	8,208,076	$	85,418	4.13	%	$	8,502,268	$	96,327	4.49	%	$	8,019,254	$	96,539	4.78	%
Commercial real estate lending	5,195,025		59,490		4.55	%	5,157,031		64,058		4.92	%	5,209,743		72,364		5.51	%
Total commercial	13,403,101		144,908		4.29	%	13,659,299		160,386		4.66	%	13,228,997		168,903		5.07	%
Residential mortgage	8,167,795		66,805		3.27	%	8,337,230		68,656		3.29	%	8,314,421		73,158		3.52	%
Retail	1,212,438		18,422		6.06	%	1,255,540		20,066		6.38	%	1,261,307		18,982		6.00	%
Total loans	22,783,334		230,135		4.02	%	23,252,068		249,108		4.26	%	22,804,725		261,043		4.55	%
Investment securities
Taxable	3,624,465		21,056		2.32	%	4,032,027		23,485		2.33	%	5,087,746		29,119		2.29	%
Tax-exempt^(a)	1,929,374		18,269		3.79	%	1,918,661		18,114		3.78	%	1,740,964		16,253		3.73	%
Other short-term investments	445,869		3,556		3.17	%	619,334		4,865		3.12	%	383,286		3,257		3.38	%
Investments and other	5,999,708		42,881		2.86	%	6,570,022		46,464		2.83	%	7,211,997		48,629		2.70	%
Total earning assets	28,783,042		$	273,015	3.78	%	29,822,090		$	295,572	3.94	%	30,016,722		$	309,672	4.11	%
Other assets, net^(d)	3,399,141						3,331,910						3,006,436
Total assets	$	32,182,183					$	33,154,000					$	33,023,158
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings	$	2,714,191	$	2,086	0.30	%	$	2,618,188	$	2,164	0.33	%	$	1,995,160	$	696	0.14	%
Interest-bearing demand	5,138,116		11,458		0.88	%	5,452,674		16,055		1.17	%	4,837,223		14,006		1.15	%
Money market	6,594,681		13,959		0.84	%	6,933,230		18,839		1.08	%	7,089,449		16,532		0.93	%
Network transaction deposits	1,438,908		6,295		1.74	%	1,764,961		10,147		2.28	%	1,880,595		10,943		2.31	%
Time deposits	2,746,978		12,080		1.74	%	3,107,670		14,381		1.84	%	3,060,896		11,982		1.55	%
Total interest-bearing deposits	18,632,874		45,877		0.98	%	19,876,723		61,585		1.23	%	18,863,323		54,159		1.14	%
Federal funds purchased and securities sold under agreements to repurchase	176,999		521		1.17	%	81,285		145		0.71	%	134,748		442		1.30	%
Commercial paper	27,708		28		0.40	%	28,721		33		0.45	%	41,528		36		0.35	%
FHLB advances	2,909,462		16,623		2.27	%	2,716,946		15,896		2.32	%	3,654,905		19,948		2.17	%
Long-term funding	585,024		5,918		4.05	%	796,561		7,396		3.71	%	795,379		7,396		3.72	%
Total short and long-term funding	3,699,192		23,090		2.48	%	3,623,513		23,469		2.58	%	4,626,560		27,822		2.39	%
Total interest-bearing liabilities	22,332,066		$	68,967	1.23	%	23,500,235		$	85,054	1.44	%	23,489,883		$	81,980	1.39	%
Noninterest-bearing demand deposits	5,470,496						5,324,481						5,366,711
Other liabilities^(d)	465,081						425,810						419,805
Stockholders’ equity	3,914,539						3,903,474						3,746,760
Total liabilities and stockholders’ equity	$	32,182,183					$	33,154,000					$	33,023,158
Interest rate spread					2.55	%					2.50	%					2.72	%
Net free funds					0.28	%					0.31	%					0.30	%
Fully tax-equivalent net interest income and net interest margin ("NIM")			$	204,048	2.83	%			$	210,517	2.81	%			$	227,692	3.02	%
Fully tax-equivalent adjustment			3,906						4,152						3,736
Net interest income			$	200,142					$	206,365					$	223,955

Numbers may not sum due to rounding.


(a)	The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21% and is net of the effects of certain disallowed interest deductions.


(b)	Nonaccrual loans and loans held for sale have been included in the average balances.


(c)	Interest income includes amortization of net deferred loan origination costs and net accreted purchase loan discount.

(d) During the third quarter of 2019, the Corporation made a change in accounting policy to offset derivative assets and liabilities and cash collateral with the same counterparty where it has a legally enforceable master netting agreement in place. Adoption of this change was voluntary and has been adopted retrospectively with all prior periods presented herein restated.

Page 7



Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year Over Year
	Year Ended December 31,
	2019						2018
($ in thousands)	Average Balance		Interest Income /Expense		Average Yield / Rate		Average Balance		Interest Income /Expense		Average Yield / Rate
Assets
Earning assets
Loans^{(a) (b) (c)}
Commercial and business lending	$	8,426,774	$	385,072	4.57	%	$	7,744,640	$	349,266	4.51	%
Commercial real estate lending	5,150,464		255,582		4.96	%	5,433,361		273,937		5.04	%
Total commercial	13,577,238		640,655		4.72	%	13,178,001		623,203		4.73	%
Residential mortgage	8,311,914		282,134		3.39	%	8,289,432		281,814		3.40	%
Retail	1,233,646		76,939		6.24	%	1,250,863		73,605		5.88	%
Total loans	23,122,797		999,727		4.32	%	22,718,297		978,622		4.31	%
Investment securities
Taxable	4,284,991		100,304		2.34	%	5,366,825		119,741		2.23	%
Tax-exempt^(a)	1,909,474		71,956		3.77	%	1,546,096		56,426		3.65	%
Other short-term investments	503,566		16,643		3.30	%	418,576		12,623		3.02	%
Investments and other	6,698,032		188,903		2.82	%	7,331,497		188,790		2.58	%
Total earning assets	29,820,829		$	1,188,630	3.99	%	30,049,793		$	1,167,412	3.88	%
Other assets, net^(d)	3,225,775						2,958,066
Total assets	$	33,046,604					$	33,007,859
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings	$	2,439,872	$	7,086	0.29	%	$	1,878,960	$	1,435	0.08	%
Interest-bearing demand	5,080,857		56,742		1.12	%	4,767,873		44,911		0.94	%
Money market	7,005,265		74,467		1.06	%	7,260,692		54,573		0.75	%
Network transaction deposits	1,860,951		42,523		2.29	%	2,095,715		39,251		1.87	%
Time deposits	3,129,142		56,468		1.80	%	2,831,229		35,948		1.27	%
Total interest-bearing deposits	19,516,088		237,286		1.22	%	18,834,469		176,118		0.94	%
Federal funds purchased and securities sold under agreements to repurchase	137,679		1,579		1.15	%	224,967		2,006		0.89	%
Commercial paper	32,123		149		0.46	%	56,076		186		0.33	%
FHLB advances	3,106,279		69,816		2.25	%	3,971,797		73,668		1.85	%
Long-term funding	742,946		28,106		3.78	%	612,513		22,579		3.69	%
Total short and long-term funding	4,019,027		99,651		2.48	%	4,865,353		98,439		2.02	%
Total interest-bearing liabilities	23,535,115		$	336,936	1.43	%	23,699,823		$	274,557	1.16	%
Noninterest-bearing demand deposits	5,219,520						5,237,580
Other liabilities^(d)	420,100						378,024
Stockholders’ equity	3,871,869						3,692,433
Total liabilities and stockholders’ equity	$	33,046,604					$	33,007,859
Interest rate spread					2.56	%					2.72	%
Net free funds					0.30	%					0.25	%
Fully tax-equivalent net interest income and net interest margin ("NIM")			$	851,693	2.86	%			$	892,855	2.97	%
Fully tax-equivalent adjustment			16,020						13,275
Net interest income			$	835,674					$	879,580

Numbers may not sum due to rounding.


(a)	The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 21% and is net of the effects of certain disallowed interest deductions.


(b)	Nonaccrual loans and loans held for sale have been included in the average balances.


(c)	Interest income includes amortization of net deferred loan origination costs and net accreted purchase loan discount.

Page 8



Associated Banc-Corp Loan and Deposit Composition
($ in thousands)
Period end loan composition	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Commercial and industrial	$	7,354,594	$	7,495,623	(2	)%	$	7,579,384	$	7,587,597	$	7,398,044	(1	)%
Commercial real estate—owner occupied	911,265		915,524		—	%	942,811		932,393		920,443		(1	)%
Commercial and business lending	8,265,858		8,411,147		(2	)%	8,522,194		8,519,990		8,318,487		(1	)%
Commercial real estate—investor	3,794,517		3,803,277		—	%	3,779,201		3,809,253		3,751,554		1	%
Real estate construction	1,420,900		1,356,508		5	%	1,394,815		1,273,782		1,335,031		6	%
Commercial real estate lending	5,215,417		5,159,784		1	%	5,174,016		5,083,035		5,086,585		3	%
Total commercial	13,481,275		13,570,932		(1	)%	13,696,210		13,603,025		13,405,072		1	%
Residential mortgage	8,136,980		7,954,801		2	%	8,277,479		8,323,846		8,277,712		(2	)%
Home equity	852,025		879,642		(3	)%	916,213		868,886		894,473		(5	)%
Other consumer	351,159		349,335		1	%	360,065		352,602		363,171		(3	)%
Total consumer	9,340,164		9,183,778		2	%	9,553,757		9,545,333		9,535,357		(2	)%
Total loans	$	22,821,440	$	22,754,710	—	%	$	23,249,967	$	23,148,359	$	22,940,429	(1	)%
Purchased credit-impaired loans	$	1,552	$	1,710	(9	)%	$	2,145	$	4,907	$	4,852	(68	)%
Period end deposit and customer funding composition	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Noninterest-bearing demand	$	5,450,709	$	5,503,223	(1	)%	$	5,354,987	$	5,334,154	$	5,698,530	(4	)%
Savings	2,735,036		2,643,950		3	%	2,591,173		2,215,857		2,012,841		36	%
Interest-bearing demand	5,329,717		5,434,955		(2	)%	6,269,035		5,226,362		5,336,952		—	%
Money market	7,640,798		7,930,676		(4	)%	7,691,775		9,005,018		9,033,669		(15	)%
Brokered CDs	5,964		16,266		(63	)%	77,543		387,459		192,234		(97	)%
Other time	2,616,839		2,893,493		(10	)%	3,289,709		3,364,206		2,623,167		—	%
Total deposits	23,779,064		24,422,562		(3	)%	25,274,222		25,533,057		24,897,393		(4	)%
Customer funding^(a)	103,113		108,369		(5	)%	104,973		146,027		137,364		(25	)%
Total deposits and customer funding	$	23,882,177	$	24,530,932	(3	)%	$	25,379,195	$	25,679,083	$	25,034,757	(5	)%
Network transaction deposits^(b)	$	1,336,286	$	1,527,910	(13	)%	$	1,805,141	$	2,204,204	$	2,276,296	(41	)%
Net deposits and customer funding (Total deposits and customer funding, excluding Brokered CDs and network transaction deposits)	$	22,539,927	$	22,986,756	(2	)%	$	23,496,510	$	23,087,421	$	22,566,227	—	%
Quarter average loan composition	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Commercial and industrial	$	7,291,592	$	7,574,448	(4	)%	$	7,688,462	$	7,459,318	$	7,166,092	2	%
Commercial real estate—owner occupied	916,484		927,820		(1	)%	933,146		916,845		853,162		7	%
Commercial and business lending	8,208,076		8,502,268		(3	)%	8,621,609		8,376,163		8,019,254		2	%
Commercial real estate—investor	3,806,168		3,768,377		1	%	3,806,828		3,777,520		3,788,398		—	%
Real estate construction	1,388,857		1,388,653		—	%	1,324,126		1,340,406		1,421,344		(2	)%
Commercial real estate lending	5,195,025		5,157,031		1	%	5,130,954		5,117,926		5,209,743		—	%
Total commercial	13,403,101		13,659,299		(2	)%	13,752,563		13,494,089		13,228,997		1	%
Residential mortgage	8,167,795		8,337,230		(2	)%	8,378,082		8,366,452		8,314,421		(2	)%
Home equity	864,144		901,291		(4	)%	869,248		883,735		895,412		(3	)%
Other consumer	348,295		354,249		(2	)%	354,478		359,238		365,895		(5	)%
Total consumer	9,380,233		9,592,770		(2	)%	9,601,809		9,609,426		9,575,728		(2	)%
Total loans^(c)	$	22,783,334	$	23,252,068	(2	)%	$	23,354,371	$	23,103,514	$	22,804,725	—	%

Quarter average deposit composition	Dec 31, 2019		Sep 30, 2019		Seql Qtr % Change		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Comp Qtr % Change
Noninterest-bearing demand	$	5,470,496	$	5,324,481	3	%	$	5,089,928	$	4,982,553	$	5,366,711	2	%
Savings	2,714,191		2,618,188		4	%	2,319,556		2,098,834		1,995,160		36	%
Interest-bearing demand	5,138,116		5,452,674		(6	)%	4,984,511		4,739,662		4,837,223		6	%
Money market	6,594,681		6,933,230		(5	)%	7,118,594		7,388,174		7,089,449		(7	)%
Network transaction deposits	1,438,908		1,764,961		(18	)%	2,024,604		2,225,027		1,880,595		(23	)%
Time deposits	2,746,978		3,107,670		(12	)%	3,544,317		3,121,960		3,060,896		(10	)%
Total deposits	$	24,103,371	$	25,201,203	(4	)%	$	25,081,509	$	24,556,209	$	24,230,034	(1	)%

N/M = Not meaningful

Numbers may not sum due to rounding.


(a)	Includes repurchase agreements and commercial paper.


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


(c)	Nonaccrual loans and loans held for sale have been included in the average balances.

Page 9



Associated Banc-Corp Non-GAAP Financial Measures Reconciliation
($ in millions, except per share data)							YTD Dec 2019			YTD Dec 2018			4Q19			3Q19			2Q19			1Q19			4Q18
Tangible common equity reconciliation^(a)
Common equity													$	3,665		$	3,664		$	3,643		$	3,579		$	3,524
Goodwill and other intangible assets, net													(1,265		)	(1,267)			(1,270		)	(1,243		)	(1,245		)
Tangible common equity													$	2,401		$	2,397		$	2,373		$	2,337		$	2,279
Tangible assets reconciliation^(a)
Total assets													$	32,386		$	32,596		$	33,247		$	33,681		$	33,615
Goodwill and other intangible assets, net													(1,265		)	(1,267		)	(1,270		)	(1,243		)	(1,245		)
Tangible assets													$	31,122		$	31,329		$	31,977		$	32,439		$	32,370
Average tangible common equity and average common equity tier 1 reconciliation^(a)
Common equity							$	3,615		$	3,505		$	3,658		$	3,647		$	3,596		$	3,558		$	3,490
Goodwill and other intangible assets, net							(1,257		)	(1,209		)	(1,266		)	(1,269		)	(1,247		)	(1,244		)	(1,246		)
Tangible common equity							2,358			2,296			2,392			2,378			2,349			2,314			2,244
Accumulated other comprehensive loss (income)							69			117			37			42			82			116			137
Deferred tax assets (liabilities), net							47			42			48			49			46			45			46
Average common equity Tier 1							$	2,474		$	2,455		$	2,476		$	2,469		$	2,477		$	2,475		$	2,427
Selected Trend Information^(b)
Insurance commissions and fees							$	89		$	90		$	20		$	21		$	23		$	25		$	21
Wealth management fees^(c)							83			83			22			21			21			20			20
Service charges and deposit account fees							63			66			16			17			15			15			16
Card-based fees							40			40			10			10			10			9			10
Other fee-based revenue							19			18			5			5			5			4			5
Fee-based revenue							294			296			72			74			74			74			74
Other							86			60			21			27			21			17			11
Total noninterest income							$	381		$	356		$	93		$	101		$	96		$	91		$	84
Selected equity and performance ratios^(a)(d)
Tangible common equity / tangible assets													7.71		%	7.65		%	7.42		%	7.20		%	7.04		%
Return on average equity							8.44		%	9.03		%	7.31		%	8.47		%	8.81		%	9.21		%	9.42		%
Return on average tangible common equity							13.21		%	14.06		%	11.33		%	13.27		%	13.81		%	14.52		%	15.08		%
Return on average common equity Tier 1							12.59		%	13.15		%	10.94		%	12.78		%	13.09		%	13.58		%	13.94		%
Efficiency ratio reconciliation^(e)
Federal Reserve efficiency ratio							65.38		%	66.23		%	69.14		%	66.55		%	62.71		%	63.32		%	62.39		%
Fully tax-equivalent adjustment							(0.85		)%	(0.71		)%	(0.91		)%	(0.90		)%	(0.84		)%	(0.77		)%	(0.75		)%
Other intangible amortization							(0.82		)%	(0.66		)%	(0.93		)%	(0.89		)%	(0.75		)%	(0.73		)%	(0.72		)%
Fully tax-equivalent efficiency ratio							63.72		%	64.87		%	67.32		%	64.78		%	61.13		%	61.83		%	60.93		%
Acquisition related costs adjustment							(0.60		)%	(2.42		)%	(0.45		)%	(0.53		)%	(1.21		)%	(0.20		)%	0.31		%
Fully tax-equivalent efficiency ratio, excluding acquisition related costs (adjusted efficiency ratio)							63.12		%	62.45		%	66.87		%	64.25		%	59.91		%	61.63		%	61.24		%
Acquisition and Restructuring Related Costs	YTD 2019		YTD 2019 per share data^(g)		4Q 2019		4Q 2019 per share data^(g)			3Q 2019			3Q 2019 per share data^(g)			2Q 2019			2Q 2019 per share data^(g)			1Q 2019			1Q 2019 per share data^(g)
GAAP earnings	$	312	$	1.91	$	68	$	0.43		$	80		$	0.49		$	81		$	0.49		$	83		$	0.50
Acquisition Related Costs
Change of control and severance	1				—					—						1						—
Merger advisors and consultants	1				—					—						—						—
Facilities and other	3				—					1						2						—
Contract terminations and conversion costs	3				1					—						1						—
Total acquisition related costs	$	7			$	1				$	2					$	4					$	1
Restructuring Related Costs
Severance	$	5			$	4				$	—					$	1					$	—
Total acquisition and restructuring related costs	$	12			$	5				$	2					$	5					$	1
Less additional tax expense	$	3			$	1				$	—					$	1					$	—
Earnings, excluding acquisition and restructuring related costs^(f)	$	321	$	1.97	$	72	$	0.45		$	81		$	0.50		$	85		$	0.51		$	84		$	0.50

Numbers may not sum due to rounding.


(a)	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.


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


(c)	Includes trust, asset management, brokerage, and annuity fees.


(d)	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.

(e)

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. The adjusted efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization and acquisition related costs, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net and acquisition related costs. Management believes the adjusted efficiency ratio, which adjusts net interest income for the tax-favored status of certain loans and investment securities and acquisition related costs, to be a meaningful measure as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and excludes acquisition related costs.


(f)	This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share and provide greater understanding of ongoing operations and enhanced comparability of results with prior periods.


(g)	Diluted earnings and per share data presented after-tax.

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