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Form 8-K ASSOCIATED BANC-CORP For: Oct 22

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October 22, 2020 4:21 PM EDT

Exhibit 99.1
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NEWS RELEASE
Investor Contact:
Brian Mathena, 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 Third Quarter 2020 Earnings of $0.26 Per Common Share Including Restructuring Charges and Tax Benefits
GREEN BAY, Wis. -- October 22, 2020 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $40 million, or $0.26 per common share, for the quarter ended September 30, 2020. Third quarter earnings, excluding restructuring charges and tax benefits, were $0.24 per common share1. These amounts compare to net income available to common equity of $80 million, or $0.49 per common share for the quarter ended September 30, 2019.
Year to date earnings were $227 million, or $1.46 per common share, compared to $243 million, or $1.48 per common share, for the same period last year. Excluding restructuring charges, tax benefits from the reorganization of our securities and real estate lending subsidiaries, the gain on sale of Associated Benefits and Risk Consulting (ABRC), and acquisition costs, year to date 2020 earnings per common share were $0.681.
"We took action during the quarter to optimize our operations and improve efficiency," said President and CEO Philip B. Flynn. "We announced the sale or consolidation of 22 branches, along with the streamlining of our back office functions, and the restructuring of several subsidiaries and liabilities. Together we expect these actions will reduce our run-rate expenses by approximately $40 million and improve our net interest income by approximately $20 million on an annualized basis. The current environment has accelerated the on-going shift of customer activity towards online and mobile banking and is driving our need to invest in technology that allows us to be more nimble, more virtual, and more digitally enabled. While the environment has been challenging, our customers are demonstrating resilience, credit trends are moderating, and the actions we have taken position us to better support our core markets going into next year.”

THIRD QUARTER 2020 SUMMARY (all comparisons to the second quarter of 2020)
•Average loans of $25.0 billion were down 1%, or $228 million
•Average deposits of $26.8 billion were up 3%, or $696 million
•Net interest income of $182 million decreased, $8 million, or 4%
•Provision for credit losses was $43 million, an improvement of $18 million, or 29%
•Tangible book value per share was $16.37, up 1%

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 pages 10 and 11 of the attached tables for a reconciliation of non-GAAP financial measures to GAAP financial measures.



Loans
Third quarter 2020 average loans of $25.0 billion were down 1%, or $228 million from the second quarter 2020 and were up 7%, or $1.7 billion from the same period last year. With respect to third quarter average balances by loan category:
•Commercial real estate lending increased $312 million from the second quarter 2020 and $875 million from the same period last year to $6.0 billion. The increase was driven by the continued funding of the existing pipeline and slowed loan payoffs.
•Consumer lending was $9.2 billion, down $269 million from the second quarter 2020 and down $433 million from the same period last year. This was driven by continued refinancing activity and a $70 million mortgage portfolio sale.
•Commercial and business lending decreased $271 million from the second quarter 2020 and increased $1.3 billion compared to the same period last year to $9.8 billion. General commercial line pay downs drove the decrease from last quarter and PPP loans accounted for the majority of the increase from the same period last year.

Deposits
Third quarter 2020 average deposits of $26.8 billion were up $696 million, or 3%, compared to the second quarter 2020 and were up $1.6 billion, or 7%, from the same period last year.
With respect to third quarter 2020 average balances by deposit category:
•Noninterest-bearing demand deposits increased $486 million from the second quarter and $2.1 billion from the same period last year to $7.4 billion.
•Interest-bearing demand deposits increased $390 million from the second quarter and $383 million from the same period last year to $5.8 billion.
•Savings increased $203 million from the second quarter and $845 million from the same period last year to $3.5 billion.
•Network transaction deposits decreased $17 million from the second quarter and $237 million from the same period last year to $1.5 billion.
•Money market deposits decreased $32 million from the second quarter and $468 million from the same period last year to $6.5 billion.
•Time deposits decreased $334 million from the second quarter and $972 million from the same period last year to $2.1 billion.








Net Interest Income and Net Interest Margin
Third quarter 2020 net interest income of $182 million was down 4%, or $8 million, and the net interest margin decreased 18 basis points, from the second quarter of 2020. Third quarter 2020 net interest income decreased 12%, or $24 million, and the net interest margin decreased 50 basis points from the same period last year, to 2.31%. The decreases in net interest income and net interest margin from the second quarter are due to loans repricing lower after reductions to LIBOR and increasing liquidity during the third quarter.
•The average yield on total earning assets for the third quarter of 2020 decreased 24 basis points from the prior quarter and decreased 124 basis points from the same period last year to 2.70%.
•The average cost of total interest-bearing liabilities for the third quarter of 2020 decreased 8 basis points from the prior quarter and decreased 92 basis points from the same period last year to 0.52%.
•The net free funds benefit for the third quarter of 2020 decreased two basis points from the prior quarter and decreased 18 basis points compared to the same period last year.
Noninterest Income
Third quarter 2020 total noninterest income of $76 million decreased $179 million from the prior quarter and decreased $25 million from the same period last year. The second quarter included $157 million of asset gains driven by the gain on sale of Associated Benefits and Risk Consulting ("ABRC").
With respect to third quarter 2020 noninterest income line items:
•Service charges and deposit account fees were $14 million for the third quarter, up $3 million from the previous quarter and down $2 million from the same period last year.
•Card-based revenue was $10 million for the third quarter, up $1 million from the previous quarter and flat from the same period last year.
•Insurance commissions and fees were down $22 million from the previous quarter and down $21 million from the same period last year due to the sale of ABRC.
Noninterest Expense
Third quarter 2020 total noninterest expense of $228 million increased $44 million from the prior quarter and increased $27 million compared to the same period last year. The third quarter 2020 included $45 million of loss on prepayments of FHLB advances which were not incurred in the prior quarter or the third quarter last year.
With respect to third quarter 2020 noninterest expense line items:
•Personnel expense decreased $3 million from the prior quarter and $15 million from the same period last year, driven by lower personnel expense from the sale of ABRC which was partially offset by severance from restructuring in 3Q 2020.    
•Technology expense decreased $2 million from the prior quarter and $1 million from the same period last year.
•Occupancy expense increased $3 million from both the prior quarter and the same period last year. This was driven by $2 million of lease termination expense.
•Other expense was up $3 million from the prior quarter and $2 million from the same period last year. This was driven by $5 million of OREO expense primarily due to our restructuring.


Taxes
The third quarter 2020 tax benefit was $58 million compared to $51 million of tax expense in the prior quarter and $21 million of tax expense in the same period last year. The tax benefit recognized in the third quarter was driven by capital losses from the reorganization of our securities and real estate lending subsidiaries.

Credit
The third quarter 2020 provision for credit losses was $43 million, down from $61 million in the prior quarter and up from $2 million in the same period last year.
With respect to third quarter 2020 credit quality:
•Potential problem loans of $293 million were down $14 million, or 5%, from the prior quarter and up $160 million, or 120%, from the same period last year.
•Nonaccrual loans of $232 million were up $60 million from the prior quarter and up $103 million from the same period last year. The increase from the prior quarter was driven by three commercial real estate deals. The nonaccrual loans to total loans ratio was 0.93% in the third quarter, up from 0.69% in the prior quarter and up from 0.57% in the same period last year.
•Net charge offs of $30 million were up $3 million from the prior quarter and up $9 million from the same period last year.
•The allowance for credit losses on loans (ACLL) of $442 million was up $13 million from the prior quarter and up $205 million compared to the same period last year. The ACLL to total loans ratio was 1.77% in the second quarter, up from 1.73% in the prior quarter and 1.04% in the same period last year.

Capital
The Company’s capital position remains strong, with a CET1 capital ratio of 10.2% at September 30, 2020. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.















THIRD QUARTER 2020 EARNINGS RELEASE CONFERENCE CALL
The Company will host a conference call for investors and analysts at 4:00 p.m. Central Time (CT) today, October 22, 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 third quarter 2020 earnings call. The third quarter 2020 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 $35 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)September 30, 2020June 30, 2020Seql Qtr $ ChangeMarch 31, 2020December 31, 2019September 30, 2019Comp Qtr $ Change
Assets
Cash and due from banks$401,151 $443,500 $(42,349)$480,337 $373,380 $523,435 $(122,284)
Interest-bearing deposits in other financial institutions712,416 1,569,006 (856,590)176,440 207,624 236,010 476,406 
Federal funds sold and securities purchased under agreements to resell95 185 (90)22,455 7,740 100 (5)
Investment securities held to maturity, net, at amortized cost(a)
1,990,870 2,077,225 (86,355)2,149,373 2,205,083 2,200,419 (209,549)
Investment securities available for sale, at fair value3,258,360 3,149,773 108,587 2,928,787 3,262,586 3,436,289 (177,929)
Equity securities 15,090 15,091 (1)15,063 15,090 15,096 (6)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost168,280 206,281 (38,001)222,922 227,347 207,443 (39,163)
Residential loans held for sale130,139 196,673 (66,534)366,330 136,280 137,655 (7,516)
Commercial loans held for sale19,360 3,565 15,795 — 15,000 11,597 7,763 
Loans25,003,753 24,832,671 171,082 24,365,633 22,821,440 22,754,710 2,249,043 
Allowance for loan losses(b)
(384,711)(363,803)(20,908)(337,793)(201,371)(214,425)(170,286)
Loans, net24,619,041 24,468,868 150,173 24,027,841 22,620,068 22,540,285 2,078,756 
Bank and corporate owned life insurance679,257 676,196 3,061 674,026 671,948 670,739 8,518 
Tax credit and other investments314,066 303,132 10,934 315,909 279,969 256,220 57,846 
Premises and equipment, net422,222 434,042 (11,820)438,469 435,284 436,268 (14,046)
Goodwill1,107,902 1,107,902 — 1,191,388 1,176,230 1,176,230 (68,328)
Mortgage servicing rights, net45,261 49,403 (4,142)58,289 67,306 68,168 (22,907)
Other intangible assets, net70,507 72,759 (2,252)92,723 88,301 91,089 (20,582)
Interest receivable91,612 87,097 4,515 92,377 91,196 96,315 (4,703)
Other assets653,117 640,765 12,352 655,328 506,046 493,105 160,012 
Total assets$34,698,746 $35,501,464 $(802,718)$33,908,056 $32,386,478 $32,596,460 $2,102,286 
Liabilities and stockholders’ equity
Noninterest-bearing demand deposits$7,489,048 $7,573,942 $(84,894)$6,107,386 $5,450,709 $5,503,223 $1,985,825 
Interest-bearing deposits19,223,500 18,977,502 245,998 19,554,194 18,328,355 18,919,339 304,161 
Total deposits26,712,547 26,551,444 161,103 25,661,580 23,779,064 24,422,562 2,289,985 
Federal funds purchased and securities sold under agreements to repurchase155,329 142,293 13,036 133,007 433,097 78,028 77,301 
Commercial paper50,987 39,535 11,452 33,647 32,016 30,416 20,571 
PPPLF1,022,217 1,009,760 12,457 — — — 1,022,217 
FHLB advances1,706,763 2,657,016 (950,253)3,214,194 3,180,967 2,877,727 (1,170,964)
Other long-term funding549,201 548,937 264 549,644 549,343 796,799 (247,598)
Allowance for unfunded commitments(b)
57,276 64,776 (7,500)56,276 21,907 22,907 34,369 
Accrued expenses and other liabilities(b)
398,991 463,245 (64,254)469,235.526 467,961 447,166 (48,175)
Total liabilities30,653,313 31,477,007 (823,694)30,117,584 28,464,355 28,675,605 1,977,708 
Stockholders’ equity
Preferred equity353,637 353,846 (209)256,716 256,716 256,716 96,921 
Common equity(b)
3,691,796 3,670,612 21,184 3,533,755 3,665,407 3,664,139 27,657 
Total stockholders’ equity4,045,433 4,024,457 20,976 3,790,471 3,922,124 3,920,855 124,578 
Total liabilities and stockholders’ equity$34,698,746 $35,501,464 $(802,718)$33,908,056 $32,386,478 $32,596,460 $2,102,286 
Numbers may not sum due to rounding.
(a) Beginning in 2020, the investment securities held to maturity are reported net of the related allowance for credit losses. Prior periods were unadjusted due to the modified retrospective application of ASU 2016-13.
(b) At January 1, 2020, the adoption of ASU 2016-13 resulted in an increase to the allowance for loan losses of $112 million and an increase to the allowance for unfunded commitments of $19 million for a total increase to the allowance for credit losses on loans of $131 million. A corresponding after tax decrease to common equity of $98 million was recorded along with a deferred tax asset of $33 million resulting in a decrease to accrued expenses and other liabilities. Prior periods were unadjusted due to the modified retrospective application of ASU 2016-13.
1


Associated Banc-Corp
Consolidated Statements of Income (Unaudited)		Comp QtrYTDYTDComp YTD
($ in thousands, except per share data)3Q202Q20$ Change% ChangeSep 2020Sep 2019$ Change% Change
Interest income
Interest and fees on loans$182,625 $191,895 $(9,270)(5)%$599,306 $768,216 $(168,910)(22)%
Interest and dividends on investment securities
Taxable13,689 16,103 (2,414)(15)%50,064 79,248 (29,184)(37)%
Tax-exempt14,523 14,616 (93)(1)%44,021 42,950 1,071 2 %
Other interest2,238 2,231 7 — %7,774 13,086 (5,312)(41)%
Total interest income213,075 224,845 (11,770)(5)%701,165 903,500 (202,335)(22)%
Interest expense
Interest on deposits10,033 13,178 (3,145)(24)%59,877 191,408 (131,531)(69)%
Interest on federal funds purchased and securities sold under agreements to repurchase34 51 (17)(33)%454 1,058 (604)(57)%
Interest on other short-term funding5 5 — — %46 113 (67)(59)%
Interest on PPPLF899 676 223 33 %1,574 — 1,574 N/M
Interest on FHLB Advances14,375 15,470 (1,095)(7)%47,471 53,194 (5,723)(11)%
Interest on long-term funding5,580 5,593 (13)— %16,780 22,196 (5,416)(24)%
Total interest expense30,925 34,973 (4,048)(12)%126,201 267,969 (141,768)(53)%
Net interest income182,150 189,872 (7,722)(4)%574,964 635,532 (60,568)(10)%
Provision for credit losses43,009 61,000 (17,991)(29)%157,009 16,000 141,009 N/M
Net interest income after provision for credit losses139,141 128,872 10,269 8 %417,954 619,532 (201,578)(33)%
Noninterest income
Wealth management fees(a)
21,152 20,916 236 1 %62,884 61,885 999 2 %
Service charges and deposit account fees14,283 11,484 2,799 24 %40,989 47,102 (6,113)(13)%
Card-based fees10,195 8,893 1,302 15 %28,685 29,848 (1,163)(4)%
Other fee-based revenue4,968 4,774 194 4 %14,240 14,246 (6)— %
Capital markets, net
7,222 6,910 312 5 %22,067 12,215 9,852 81 %
Mortgage banking, net12,636 12,263 373 3 %31,043 25,118 5,925 24 %
Bank and corporate owned life insurance3,074 3,625 (551)(15)%9,793 11,482 (1,689)(15)%
Insurance commissions and fees114 22,430 (22,316)(99)%45,153 69,403 (24,250)(35)%
Asset gains (losses), net(b)
(339)157,361 (157,700)(100)%156,945 2,316 154,629 N/M
Investment securities gains (losses), net 7 3,096 (3,089)(100)%9,222 5,931 3,291 55 %
Other
2,232 2,737 (505)(18)%7,321 8,344 (1,023)(12)%
Total noninterest income75,545 254,490 (178,945)(70)%428,342 287,890 140,452 49 %
Noninterest expense
Personnel108,567 111,350 (2,783)(2)%334,117 366,449 (32,332)(9)%
Technology19,666 21,174 (1,508)(7)%61,639 59,698 1,941 3 %
Occupancy17,854 14,464 3,390 23 %48,386 45,466 2,920 6 %
Business development and advertising3,626 3,556 70 2 %13,007 21,284 (8,277)(39)%
Equipment5,399 5,312 87 2 %16,150 17,580 (1,430)(8)%
Legal and professional 5,591 5,058 533 11 %15,809 14,342 1,467 10 %
Loan and foreclosure costs2,118 3,605 (1,487)(41)%8,842 5,599 3,243 58 %
FDIC assessment3,900 5,250 (1,350)(26)%14,650 12,250 2,400 20 %
Other intangible amortization2,253 2,872 (619)(22)%7,939 7,237 702 10 %
Acquisition related costs(c)
218 518 (300)(58)%2,457 5,995 (3,538)(59)%
Loss on prepayments of FHLB advances44,650 — 44,650 N/M44,650 — 44,650 N/M
Other13,745 10,249 3,496 34 %35,537 34,479 1,058 3 %
Total noninterest expense227,587 183,407 44,180 24 %603,184 590,380 12,804 2 %
Income (loss) before income taxes(12,900)199,955 (212,855)(106)%243,112 317,042 (73,930)(23)%
Income tax expense (benefit)(58,114)51,238 (109,352)N/M3,342 62,356 (59,014)(95)%
Net income45,214 148,718 (103,504)(70)%239,769 254,686 (14,917)(6)%
Preferred stock dividends5,207 4,144 1,063 26 %13,152 11,402 1,750 15 %
Net income available to common equity$40,007 $144,573 $(104,566)(72)%$226,618 $243,285 $(16,667)(7)%
Earnings per common share
Basic$0.26 $0.94 $(0.68)(72)%$1.47 $1.49 $(0.02)(1)%
Diluted$0.26 $0.94 $(0.68)(72)%$1.46 $1.48 $(0.02)(1)%
Average common shares outstanding
Basic152,440 152,393 47 — %153,175 161,727 (8,552)(5)%
Diluted153,194 153,150 44 — %153,914 163,061 (9,147)(6)%
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Includes trust, asset management, brokerage, and annuity fees.
(b) 2Q20 and YTD 2020 include a gain of $163 million from the sale of Associated Benefits & Risk Consulting. YTD 2019 include less than $1 million of Huntington related asset losses.
(c)    Includes Huntington branch and First Staunton acquisition related costs only.
2


Associated Banc-Corp
Consolidated Statements of Income (Unaudited) - Quarterly Trend
($ in thousands, except per share data)  Seql Qtr   Comp Qtr
3Q202Q20$ Change% Change1Q204Q193Q19$ Change% Change
Interest income
Interest and fees on loans$182,625 $191,895 $(9,270)(5)%$224,786 $229,883 $248,579 $(65,954)(27)%
Interest and dividends on investment securities
Taxable13,689 16,103 (2,414)(15)%20,272 21,056 23,485 (9,796)(42)%
Tax-exempt14,523 14,616 (93)(1)%14,882 14,615 14,491 32 — %
Other interest2,238 2,231 7 — %3,304 3,556 4,865 (2,627)(54)%
Total interest income213,075 224,845 (11,770)(5)%263,244 269,110 291,420 (78,345)(27)%
Interest expense
Interest on deposits10,033 13,178 (3,145)(24)%36,666 45,877 61,585 (51,552)(84)%
Interest on federal funds purchased and securities sold under agreements to repurchase34 51 (17)(33)%368 521 145 (111)(77)%
Interest on other short-term funding5 5 — — %36 25 30 (25)(83)%
Interest on PPPLF899 676 223 33 %— — — 899 N/M
Interest on FHLB Advances14,375 15,470 (1,095)(7)%17,626 16,623 015,896 (1,521)(10)%
Interest on long-term funding5,580 5,593 (13)— %5,607 5,921 7,398 (1,818)(25)%
Total interest expense30,925 34,973 (4,048)(12)%60,303 68,967 85,054 (54,129)(64)%
Net interest income182,150 189,872 (7,722)(4)%202,942 200,142 206,365 (24,215)(12)%
Provision for credit losses43,009 61,000 (17,991)(29)%53,001 — 2,000 41,009 N/M
Net interest income after provision for credit losses139,141 128,872 10,269 8 %149,941 200,142 204,365 (65,224)(32)%
Noninterest income
Wealth management fees(a)
21,152 20,916 236 1 %20,816 21,582 21,015 137 1 %
Service charges and deposit account fees14,283 11,484 2,799 24 %15,222 16,032 16,561 (2,278)(14)%
Card-based fees 10,195 8,893 1,302 15 %9,597 9,906 10,456 (261)(2)%
Other fee-based revenue4,968 4,774 194 4 %4,497 4,696 5,085 (117)(2)%
Capital markets, net 7,222 6,910 312 5 %7,935 7,647 4,300 2,922 68 %
Mortgage banking, net12,636 12,263 373 3 %6,143 6,760 10,940 1,696 16 %
Bank and corporate owned life insurance3,074 3,625 (551)(15)%3,094 3,364 4,337 (1,263)(29)%
Insurance commissions and fees114 22,430 (22,316)(99)%22,608 19,701 020,954 (20,840)(99)%
Asset gains (losses), net(b)
(339)157,361 (157,700)(100)%(77)398 877 (1,216)(139)%
Investment securities gains (losses), net7 3,096 (3,089)(100)%6,118 26 3,788 (3,781)(100)%
Other 2,232 2,737 (505)(18)%2,352 2,822 2,537 (305)(12)%
Total noninterest income75,545 254,490 (178,945)(70)%98,306 92,934 100,850 (25,305)(25)%
Noninterest expense
Personnel108,567 111,350 (2,783)(2)%114,200 120,614 123,170 (14,603)(12)%
Technology19,666 21,174 (1,508)(7)%20,799 22,731 20,572 (906)(4)%
Occupancy17,854 14,464 3,390 23 %16,069 16,933 15,164 2,690 18 %
Business development and advertising3,626 3,556 70 2 %5,826 8,316 7,991 (4,365)(55)%
Equipment5,399 5,312 87 2 %5,439 5,970 6,335 (936)(15)%
Legal and professional 5,591 5,058 533 11 %5,160 5,559 5,724 (133)(2)%
Loan and foreclosure costs2,118 3,605 (1,487)(41)%3,120 3,262 1,638 480 29 %
FDIC assessment3,900 5,250 (1,350)(26)%5,500 4,000 4,000 (100)(3)%
Other intangible amortization2,253 2,872 (619)(22)%2,814 2,712 2,686 (433)(16)%
Acquisition related costs(c)
218 518 (300)(58)%1,721 1,325 1,629 (1,411)(87)%
Loss on prepayments of FHLB advances44,650 — 44,650 N/M— — — 44,650 N/M
Other13,745 10,249 3,496 34 %11,543 12,187 12,021 1,724 14 %
Total noninterest expense227,587 183,407 44,180 24 %192,191 203,609 200,930 26,657 13 %
Income (loss) before income taxes(12,900)199,955 (212,855)(106)%56,056 89,467 104,286 (117,186)(112)%
Income tax expense (benefit)(58,114)51,238 (109,352)N/M10,219 17,364 20,947 (79,061)N/M
Net income45,214 148,718 (103,504)(70)%45,838 72,103 83,339 (38,125)(46)%
Preferred stock dividends5,207 4,144 1,063 26 %3,801 3,801 3,801 1,406 37 %
Net income available to common equity$40,007 $144,573 $(104,566)(72)%$42,037 $68,303 $79,539 $(39,532)(50)%
Earnings per common share
Basic$0.26 $0.94 $(0.68)(72)%$0.27 $0.43 $0.50 $(0.24)(48)%
Diluted$0.26 $0.94 $(0.68)(72)%$0.27 $0.43 $0.49 $(0.23)(47)%
Average common shares outstanding
Basic152,440 152,393 47 — %154,701 156,994 159,126 (6,686)(4)%
Diluted153,194 153,150 44 — %155,619 158,472 160,382 (7,188)(4)%
N/M = Not meaningful
Numbers may not sum due to rounding.
(a) Includes trust, asset management, brokerage, and annuity fees.
(b)    2Q20 includes a gain of $163 million from the sale of Associated Benefits & Risk Consulting.
(c) Includes Huntington branch and First Staunton acquisition related costs only.
3


Associated Banc-Corp
Selected Quarterly Information
($ in millions except per share data and COVID-19 loan modifications; shares repurchased and outstanding in thousands)YTD
Sep 2020		YTD
Sep 2019		3Q202Q201Q204Q193Q19
Per common share data
Dividends$0.54 $0.51 $0.18 $0.18 $0.18 $0.18 $0.17 
Market value:
High21.94 23.67 14.25 17.03 21.94 22.51 21.67 
Low10.85 18.64 11.86 11.48 10.85 18.96 18.64 
Close12.62 20.25 12.62 13.68 12.79 22.04 20.25 
Book value24.04 23.00 24.04 23.89 22.99 23.32 23.00 
Tangible book value / share16.37 15.05 16.37 16.21 14.64 15.28 15.05 
Performance ratios (annualized)
Return on average assets0.93 %1.02 %0.51 %1.72 %0.57 %0.89 %1.00 %
Noninterest expense / average assets2.35 %2.37 %2.55 %2.12 %2.37 %2.51 %2.40 %
Effective tax rate1.37 %19.67 %N/M25.62 %18.23 %19.41 %20.09 %
Dividend payout ratio(a)
36.73 %34.23 %69.23 %19.15 %66.67 %41.86 %34.00 %
Net interest margin2.54 %2.86 %2.31 %2.49 %2.84 %2.83 %2.81 %
Selected trend information
Average full time equivalent employees(b)
4,568 4,703 4,374 4,701 4,631 4,696 4,782 
Branch count249 249 249 248 248 
Assets under management, at market value(c)
$12,195 $11,755 $10,454 $12,104 $11,604 
Mortgage loans originated for sale during period$1,319 $824 $458 $550 $310 $267 $365 
Mortgage loan settlements during period(d)
$1,621 $1,049 $599 $725 $297 $268 $617 
Mortgage portfolio loans transferred to held for sale during period$269 $243 $70 $— $200 $— $243 
Mortgage portfolio serviced for others$8,219 $8,454 $8,549 $8,489 $8,692 
Mortgage servicing rights, net / mortgage portfolio serviced for others0.55 %0.58 %0.68 %0.79 %0.78 %
Shares repurchased during period(e)
4,264 5,954 — — 4,264 2,256 2,892 
Shares outstanding, end of period153,552 159,291 153,552 153,616 153,690 157,171 159,291 
Paycheck Protection Program fees, net
Fees, beginning of period$27 N/A$24 $27 N/AN/AN/A
Fees recognized(6)N/A(4)(3)N/AN/AN/A
Fees, end of period$21 N/A$21 $24 N/AN/AN/A
Outstanding COVID-19 Forbearances ($ in thousands)
Commercial and industrial$19,414 $45,415 $345 N/AN/A
Commercial real estate—owner occupied38,111 138,267 — N/AN/A
Commercial and business lending57,525 183,682 345 N/AN/A
Commercial real estate—investor226,720 623,020 595 N/AN/A
Real estate construction2,009 32,214 — N/AN/A
Commercial real estate lending228,729 655,234 595 N/AN/A
Total commercial286,254 838,917 940 N/AN/A
Residential mortgage364,593 692,307 428 N/AN/A
Home equity 10,068 30,554 — N/AN/A
Other consumer1,132 2,060 — N/AN/A
Total consumer375,794 724,921 428 N/AN/A
Total COVID-19 loan modifications$662,048 $1,563,838 $1,368 N/AN/A
Selected quarterly ratios
Loans / deposits93.60 %93.53 %94.95 %95.97 %93.17 %
Stockholders’ equity / assets11.66 %11.34 %11.18 %12.11 %12.03 %
Risk-based capital(f)(g)
Total risk-weighted assets$26,142 $25,865 $25,866 $24,296 $24,313 
Common equity Tier 1$2,672 $2,651 $2,421 $2,481 $2,482 
Common equity Tier 1 capital ratio10.22 %10.25 %9.36 %10.21 %10.21 %
Tier 1 capital ratio11.57 %11.62 %10.35 %11.26 %11.26 %
Total capital ratio13.78 %13.83 %12.56 %13.21 %13.26 %
Tier 1 leverage ratio9.02 %9.08 %8.50 %8.83 %8.57 %
Mortgage banking, net
Mortgage servicing fees, net(h)
$— $8 $(1)$(1)$2 $2 $2 
Gains (losses) and fair value adjustments on loans held for sale45 13 14 21 10 5 4 
Fair value adjustment on portfolio loans transferred to held for sale4 4 1 — 3 — 4 
Mortgage servicing rights (impairment) recovery(18)— (1)(8)(9)— — 
Mortgage banking, net$31 $25 $13 $12 $6 $7 $11 
N/M = Not meaningful
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 were transferred during the period, resulting in increased settlements.
(e)Does not include repurchases related to tax withholding on equity compensation.
(f)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.
(g)September 30, 2020 data is estimated.
(h)Includes mortgage origination and servicing fees, net of mortgage servicing rights amortization.


4


Associated Banc-Corp
Selected Asset Quality Information		     
($ in thousands)Sep 30, 2020Jun 30, 2020Seql Qtr %
Change		Mar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr %
Change
Allowance for loan losses
Balance at beginning of period$363,803 $337,793 8 %$201,371 $214,425 $233,65956 %
Cumulative effect of ASU 2016-13 adoption (CECL) N/AN/A112,457 N/AN/A
January 1, 2020 N/AN/A313,828 N/AN/A
Provision for loan losses50,500 52,500 (4)%37,500 1,000 1,000 N/M
Allowance for PCD loans for bank acquisition N/AN/A3,504 N/AN/A
Charge offs(34,079)(28,351)20 %(19,308)(16,752)(26,313)30 %
Recoveries4,488 1,861 141 %2,268 2,699 6,079 (26)%
Net charge offs(29,592)(26,490)12 %(17,040)(14,054)(20,234)46 %
Balance at end of period$384,711 $363,803 6 %$337,793 $201,371 $214,425 79 %
Allowance for unfunded commitments
Balance at beginning of period$64,776 $56,276 15 %$21,907 $22,907 $21,907 196 %
Cumulative effect of ASU 2016-13 adoption (CECL)N/AN/A18,690 N/AN/A
January 1, 2020N/AN/A40,597 N/AN/A
Provision for unfunded commitments(7,500)8,500 N/M15,500 (1,000)1,000 N/M
Amount recorded at acquisition— — N/M179 — — N/M
Balance at end of period$57,276 $64,776 (12)%$56,276 $21,907 $22,907 150 %
Allowance for credit losses on loans (ACLL)(a)
$441,988 $428,579 3 %$394,069 $223,278 $237,331 86 %
Provision for credit losses on loans(b)
$43,000 $61,000 (30)%$53,000 $— $2,000 N/M
($ in thousands)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019
Net (charge offs) recoveries
PPP Loans$— $— N/M$— $— $— N/M
Commercial and industrial(24,834)(24,919)— %(15,049)(11,917)(19,918)25 %
Commercial real estate—owner occupied(416)1 N/M— — 1,483 N/M
Commercial and business lending(25,249)(24,919)1 %(15,048)(11,917)(18,435)37 %
Commercial real estate—investor(3,609)28 N/M— — (3)N/M
Real estate construction(21)(3)N/M11 72 20 N/M
Commercial real estate lending(3,630)25 N/M11 72 17 N/M
Total commercial(28,879)(24,893)16 %(15,037)(11,845)(18,418)57 %
Residential mortgage (79)(215)(63)%(912)(1,415)(393)(80)%
Home equity 156 (303)N/M71 480 (275)N/M
Other consumer(790)(1,078)(27)%(1,162)(1,274)(1,148)(31)%
Total consumer(712)(1,596)(55)%(2,003)(2,208)(1,816)(61)%
Total net (charge offs) recoveries$(29,592)$(26,490)12 %$(17,040)$(14,054)$(20,234)46 %
(In basis points)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019 
Net charge offs to average loans (annualized)
PPP Loans— — — — — 
Commercial and industrial(126)(121)(81)(65)(104)
Commercial real estate—owner occupied(18)— — — 63 
Commercial and business lending(103)(100)(72)(58)(86)
Commercial real estate—investor(34)— — — — 
Real estate construction— — — 2 1 
Commercial real estate lending(24)— — 1 — 
Total commercial(73)(64)(44)(35)(53)
Residential mortgage — (1)(4)(7)(2)
Home equity8 (15)3 22 (12)
Other consumer(98)(128)(134)(145)(129)
Total consumer(3)(7)(8)(9)(8)
Total net charge offs(47)(42)(29)(24)(35)
($ in thousands)Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019
Credit Quality
Nonaccrual loans$231,590 $171,607 35 %$136,717 $118,380 $128,939 80 %
Other real estate owned (OREO)18,983 20,264 (6)%22,530 21,101 19,625 (3)%
Other nonperforming assets909 909 — %6,004 6,004 6,004 (85)%
Total nonperforming assets$251,481 $192,780 30 %$165,251 $145,485 $154,568 63 %
Loans 90 or more days past due and still accruing$1,854 $1,466 26 %$2,255 $2,259 $1,986 (7)%
Allowance for loan losses to loansN/AN/AN/A0.88 %0.94 %
Allowance for credit losses to loans1.77 %1.73 %1.62 %0.98 %1.04 %
Allowance for loan losses to nonaccrual loansN/AN/AN/A170.10 %166.30 %
Allowance for credit losses to nonaccrual loans190.85 %249.74 %288.24 %188.61 %184.07 %
Nonaccrual loans to total loans0.93 %0.69 %0.56 %0.52 %0.57 %
Nonperforming assets to total loans plus OREO1.01 %0.78 %0.68 %0.64 %0.68 %
Nonperforming assets to total assets0.72 %0.54 %0.49 %0.45 %0.47 %
Year-to-date net charge offs to year-to-date average loans (annualized)0.40 %0.36 %0.29 %0.24 %0.24 %
(a)    Excludes approximately $70,000 of allowance for held to maturity investment securities
(b)    March 31, 2020 excludes less than $1,000 and September 30, 2020 excludes approximately $9,000 of provision for held to maturity investment securities
5


Associated Banc-Corp
Selected Asset Quality Information (continued)
(In thousands)Sep 30, 2020Jun 30, 2020Seql Qtr %
Change		Mar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr %
Change
Nonaccrual loans
Commercial and industrial$105,899 $80,239 32 %$58,854 $46,312 $56,536 87 %
Commercial real estate—owner occupied2,043 1,932 6 %1,838 67 68 N/M
Commercial and business lending107,941 82,171 31 %60,692 46,380 56,604 91 %
Commercial real estate—investor50,458 11,172 N/M1,091 4,409 4,800 N/M
Real estate construction392 503 (22)%486 493 542 (28)%
Commercial real estate lending50,850 11,675 N/M1,577 4,902 5,342 N/M
Total commercial158,792 93,846 69 %62,269 51,282 61,946 156 %
Residential mortgage 62,331 66,656 (6)%64,855 57,844 57,056 9 %
Home equity10,277 10,829 (5)%9,378 9,104 9,828 5 %
Other consumer190 276 (31)%215 152 109 74 %
Total consumer72,798 77,761 (6)%74,448 67,099 66,993 9 %
Total nonaccrual loans$231,590 $171,607 35 %$136,717 $118,380 $128,939 80 %
Sep 30, 2020Jun 30, 2020Seql Qtr %
Change		Mar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr %
Change
Restructured loans (accruing)(a)
Commercial and industrial$16,002 $16,321 (2)%$16,056 $16,678 $15,398 4 %
Commercial real estate—owner occupied1,389 1,441 (4)%2,091 1,676 1,912 (27)%
Commercial and business lending17,391 17,762 (2)%18,146 18,353 17,311 — %
Commercial real estate—investor635 114 N/M281 293 304 109 %
Real estate construction382 313 22 %339 298 227 68 %
Commercial real estate lending1,016 427 138 %620 591 531 91 %
Total commercial18,407 18,189 1 %18,767 18,944 17,842 3 %
Residential mortgage 5,378 4,178 29 %4,654 3,955 3,228 67 %
Home equity1,889 1,717 10 %1,719 1,896 2,017 (6)%
Other consumer1,218 1,219 — %1,245 1,246 1,243 (2)%
Total consumer8,485 7,114 19 %7,618 7,097 6,487 31 %
Total restructured loans (accruing)$26,891 $25,303 6 %$26,384 $26,041 $24,329 11 %
Nonaccrual restructured loans (included in nonaccrual loans)$23,844 $25,362 (6)%$24,204 $22,494 $16,293 46 %
Sep 30, 2020Jun 30, 2020Seql Qtr %
Change		Mar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr %
Change
Accruing Loans 30-89 Days Past Due
Commercial and industrial$298 $716 (58)%$976 $821 $426 (30)%
Commercial real estate—owner occupied870 199 N/M51 1,369 2,646 (67)%
Commercial and business lending1,167 916 27 %1,027 2,190 3,073 (62)%
Commercial real estate—investor409 13,874 (97)%14,462 1,812 636 (36)%
Real estate construction111 385 (71)%179 97 595 (81)%
Commercial real estate lending520 14,260 (96)%14,641 1,909 1,232 (58)%
Total commercial1,687 15,175 (89)%15,668 4,099 4,304 (61)%
Residential mortgage6,185 3,023 105 %10,102 9,274 8,063 (23)%
Home equity5,609 3,108 80 %7,001 5,647 4,798 17 %
Other consumer1,351 1,482 (9)%1,777 2,083 2,203 (39)%
Total consumer13,144 7,613 73 %18,879 17,005 15,063 (13)%
Total accruing loans 30-89 days past due$14,831 $22,788 (35)%$34,547 $21,104 $19,367 (23)%
Sep 30, 2020Jun 30, 2020Seql Qtr %
Change		Mar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr %
Change
Potential Problem Loans
PPP Loans$19,161 $19,161 — %$— $— $— N/M
Commercial and industrial144,159 176,270 (18)%149,747 110,308 59,427 143 %
Commercial real estate—owner occupied22,808 15,919 43 %15,802 19,889 22,624 1 %
Commercial and business lending186,129 211,350 (12)%165,550 130,197 82,051 127 %
Commercial real estate—investor100,459 88,237 14 %61,030 29,449 49,353 104 %
Real estate construction2,178 2,170 — %1,753 — 544 N/M
Commercial real estate lending102,637 90,407 14 %62,783 29,449 49,897 106 %
Total commercial288,766 301,758 (4)%228,333 159,646 131,948 119 %
Residential mortgage2,396 3,157 (24)%3,322 1,451 1,242 93 %
Home equity 1,632 1,921 (15)%2,238 — — N/M
Total consumer4,028 5,078 (21)%5,559 1,451 1,242 N/M
Total potential problem loans$292,794 $306,836 (5)%$233,892 $161,097 $133,189 120 %
N/M = Not meaningful
N/A = Not applicable
Numbers may not sum due to rounding.
(a) Does not include any restructured loans related to COVID-19 in accordance with regulatory guidance
6


Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter
Three Months Ended
 September 30, 2020June 30, 2020September 30, 2019
($ 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 PPP lending$1,019,808 $6,172 2.41 %$848,761 $4,841 2.29 %$— $— — %
Commercial and business lending (excl PPP loans)8,751,083 56,951 2.59 %9,192,910 64,097 2.80 %8,502,268 96,327 4.49 %
Commercial real estate lending6,032,308 44,354 2.93 %5,720,262 46,057 3.24 %5,157,031 64,058 4.92 %
Total commercial15,803,199 107,476 2.71 %15,761,933 114,995 2.93 %13,659,299 160,386 4.66 %
Residential mortgage 8,058,283 61,701 3.06 %8,271,757 62,860 3.04 %8,337,230 68,656 3.29 %
Retail1,101,589 13,780 4.99 %1,157,116 14,368 4.98 %1,255,540 20,066 6.38 %
Total loans24,963,071 182,957 2.92 %25,190,806 192,223 3.06 %23,252,068 249,108 4.26 %
Investment securities
Taxable 3,438,858 13,689 1.59 %3,129,113 16,103 2.06 %4,032,027 23,485 2.33 %
Tax-exempt(a)
1,923,445 18,154 3.78 %1,922,392 18,270 3.80 %1,918,661 18,114 3.78 %
Other short-term investments1,788,471 2,238 0.50 %1,016,976 2,231 0.88 %619,334 4,865 3.12 %
Investments and other7,150,775 34,081 1.90 %6,068,481 36,604 2.41 %6,570,022 46,464 2.83 %
Total earning assets32,113,847 $217,038 2.70 %31,259,287 $228,826 2.94 %29,822,090 $295,572 3.94 %
Other assets, net3,436,512 3,586,656 3,331,910 
Total assets$35,550,359 $34,845,943 $33,154,000 
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings$3,462,942 $382 0.04 %$3,260,040 $429 0.05 %$2,618,188 $2,164 0.33 %
Interest-bearing demand5,835,597 1,085 0.07 %5,445,267 1,442 0.11 %5,452,674 16,055 1.17 %
Money market6,464,784 1,444 0.09 %6,496,841 1,902 0.12 %6,933,230 18,839 1.08 %
Network transaction deposits1,528,199 609 0.16 %1,544,737 539 0.14 %1,764,961 10,147 2.28 %
Time deposits2,135,870 6,513 1.21 %2,469,899 8,866 1.44 %3,107,670 14,381 1.84 %
Total interest-bearing deposits19,427,392 10,033 0.21 %19,216,785 13,178 0.28 %19,876,723 61,585 1.23 %
Federal funds purchased and securities sold under agreements to repurchase140,321 34 0.10 %204,548 51 0.10 %81,285 145 0.71 %
Commercial Paper42,338 5 0.05 %37,526 5 0.05 %28,721 30 0.41 %
PPPLF1,018,994 899 0.35 %774,500 676 0.35 %— — — %
FHLB advances2,450,344 14,375 2.33 %2,810,867 15,470 2.21 %2,716,946 15,896 2.32 %
Long-term funding549,042 5,580 4.06 %548,757 5,593 4.08 %796,561 7,398 3.71 %
Total short and long-term funding4,201,039 20,892 1.98 %4,376,199 21,795 2.00 %3,623,513 23,469 2.58 %
Total interest-bearing liabilities23,628,431 $30,925 0.52 %23,592,983 $34,973 0.60 %23,500,235 $85,054 1.44 %
Noninterest-bearing demand deposits7,412,186 6,926,401 5,324,481 
Other liabilities475,310 480,041 425,810 
Stockholders’ equity4,034,432 3,846,517 3,903,474 
Total liabilities and stockholders’ equity$35,550,359 $34,845,943 $33,154,000 
Interest rate spread2.18 %2.34 %2.50 %
Net free funds0.13 %0.15 %0.31 %
Fully tax-equivalent net interest income and net interest margin ("NIM")$186,112 2.31 %$193,853 2.49 %$210,517 2.81 %
Fully tax-equivalent adjustment3,963 3,981 4,152 
Net interest income$182,150 $189,872 $206,365 
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.

7


Associated Banc-Corp
Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year Over Year
Nine Months Ended September 30,
 20202019
($ 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 PPP lending$624,305 $11,012 2.36 %$— $— — %
Commercial and business lending (excl PPP loans)8,774,616 201,265 3.06 %8,500,475 299,621 4.71 %
Commercial real estate lending5,695,281 147,909 3.47 %5,135,447 196,005 5.10 %
Total commercial15,094,201 360,187 3.19 %13,635,922 495,626 4.86 %
Residential mortgage
8,244,116 194,521 3.15 %8,360,481 215,329 3.43 %
Retail1,150,916 45,621 5.29 %1,240,793 58,517 6.29 %
Total loans24,489,234 600,329 3.27 %23,237,195 769,472 4.42 %
Investment securities
Taxable 3,343,083 50,064 2.00 %4,507,586 79,248 2.34 %
Tax-exempt (a)
1,939,968 55,026 3.78 %1,902,768 53,687 3.76 %
Other short-term investments1,095,555 7,774 0.95 %523,010 13,086 3.34 %
Investments and other6,378,606 112,864 2.36 %6,933,364 146,022 2.81 %
Total earning assets30,867,840 $713,193 3.08 %30,170,560 $915,493 4.05 %
Other assets, net3,460,967 3,167,352 
Total assets$34,328,806 $33,337,911 
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings$3,198,244 $2,610 0.11 %$2,347,428 $5,000 0.28 %
Interest-bearing demand5,530,482 11,281 0.27 %5,061,561 45,284 1.20 %
Money market6,499,965 14,152 0.29 %7,144,999 60,509 1.13 %
Network transaction deposits1,502,449 5,750 0.51 %2,003,179 36,228 2.42 %
Time deposits2,412,985 26,083 1.44 %3,257,930 44,388 1.82 %
Total interest-bearing deposits19,144,126 59,877 0.42 %19,815,097 191,408 1.29 %
Federal funds purchased and securities sold under agreements to repurchase179,615 454 0.34 %124,428 1,058 1.14 %
Commercial Paper38,064 35 0.12 %33,610 113 0.45 %
PPPLF599,368 1,574 0.35 %— — — %
Other short-term funding5,645 11 0.25 %— — — %
FHLB advances2,829,680 47,471 2.24 %3,172,606 53,194 2.24 %
Long-term funding549,088 16,780 4.07 %796,165 22,196 3.72 %
Total short and long-term funding4,201,461 66,325 2.11 %4,126,810 76,560 2.48 %
Total interest-bearing liabilities23,345,586 $126,201 0.72 %23,941,907 $267,969 1.50 %
Noninterest-bearing demand deposits6,618,058 5,133,573 
Other liabilities457,195 404,941 
Stockholders’ equity3,907,966 3,857,490 
Total liabilities and stockholders’ equity$34,328,806 $33,337,911 
Interest rate spread2.36 %2.55 %
Net free funds0.18 %0.31 %
Fully tax-equivalent net interest income and net interest margin ("NIM")$586,992 2.54 %$647,525 2.86 %
Fully tax-equivalent adjustment12,028 11,993 
Net interest income$574,964 $635,532 
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.

8


Associated Banc-Corp
Loan and Deposit Composition		       
($ in thousands)
Period end loan compositionSep 30, 2020Jun 30, 2020Seql Qtr % ChangeMar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr % Change
PPP Loans$1,022,217 $1,012,033 1 %$— $— $— N/M
Commercial and industrial7,933,404 7,968,709 — %8,517,974 7,354,594 7,495,623 6 %
Commercial real estate—owner occupied904,997 914,385 (1)%940,687 911,265 915,524 (1)%
Commercial and business lending9,860,618 9,895,127 — %9,458,661 8,265,858 8,411,147 17 %
Commercial real estate—investor4,320,926 4,174,125 4 %4,038,036 3,794,517 3,803,277 14 %
Real estate construction1,859,609 1,708,189 9 %1,544,858 1,420,900 1,356,508 37 %
Commercial real estate lending6,180,536 5,882,314 5 %5,582,894 5,215,417 5,159,784 20 %
Total commercial16,041,154 15,777,441 2 %15,041,555 13,481,275 13,570,932 18 %
Residential mortgage 7,885,523 7,933,518 (1)%8,132,417 8,136,980 7,954,801 (1)%
Home equity 761,593 795,671 (4)%844,901 852,025 879,642 (13)%
Other consumer315,483 326,040 (3)%346,761 351,159 349,335 (10)%
Total consumer8,962,599 9,055,230 (1)%9,324,079 9,340,164 9,183,778 (2)%
Total loans$25,003,753 $24,832,671 1 %$24,365,633 $22,821,440 $22,754,710 10 %
Period end deposit and customer funding compositionSep 30, 2020Jun 30, 2020Seql Qtr % ChangeMar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr % Change
Noninterest-bearing demand$7,489,048 $7,573,942 (1)%$6,107,386 $5,450,709 $5,503,223 36 %
Savings3,529,423 3,394,930 4 %3,033,039 2,735,036 2,643,950 33 %
Interest-bearing demand5,979,449 5,847,349 2 %6,170,071 5,329,717 5,434,955 10 %
Money market7,687,775 7,486,319 3 %7,717,739 7,640,798 7,930,676 (3)%
Brokered CDs— 4,225 (100)%65,000 5,964 16,266 (100)%
Other time2,026,852 2,244,680 (10)%2,568,345 2,616,839 2,893,493 (30)%
Total deposits26,712,547 26,551,444 1 %25,661,580 23,779,064 24,422,562 9 %
Customer funding(a)
198,741 178,398 11 %142,174 103,113 108,369 83 %
Total deposits and customer funding$26,911,289 $26,729,842 1 %$25,803,754 $23,882,177 $24,530,932 10 %
Network transaction deposits(b)
$1,390,778 $1,496,958 (7)%$1,731,996 $1,336,286 $1,527,910 (9)%
Net deposits and customer funding (Total deposits and customer funding, excluding Brokered CDs and network transaction deposits)$25,520,511 $25,228,660 1 %$24,006,758 $22,539,927 $22,986,756 11 %
Quarter average loan compositionSep 30, 2020Jun 30, 2020Seql Qtr % ChangeMar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr % Change
PPP Loans$1,019,808 $848,761 20 %$— $— $— N/M
Commercial and industrial$7,844,209 $8,263,270 (5)%$7,455,528 $7,291,592 $7,574,448 4 %
Commercial real estate—owner occupied906,874 929,640 (2)%924,585 916,484 927,820 (2)%
Commercial and business lending9,770,891 10,041,671 (3)%8,380,113 8,208,076 8,502,268 15 %
Commercial real estate—investor4,255,473 4,113,895 3 %3,857,277 3,806,168 3,768,377 13 %
Real estate construction1,776,835 1,606,367 11 %1,472,292 1,388,857 1,388,653 28 %
Commercial real estate lending6,032,308 5,720,262 5 %5,329,568 5,195,025 5,157,031 17 %
Total commercial15,803,199 15,761,933 — %13,709,681 13,403,101 13,659,299 16 %
Residential mortgage8,058,283 8,271,757 (3)%8,404,351 8,167,795 8,337,230 (3)%
Home equity780,202 819,680 (5)%845,422 864,144 901,291 (13)%
Other consumer321,387 337,436 (5)%349,164 348,295 354,249 (9)%
Total consumer9,159,872 9,428,873 (3)%9,598,937 9,380,233 9,592,770 (5)%
Total loans(c)
$24,963,071 $25,190,806 (1)%$23,308,618 $22,783,334 $23,252,068 7 %
Quarter average deposit compositionSep 30, 2020Jun 30, 2020Seql Qtr % ChangeMar 31, 2020Dec 31, 2019Sep 30, 2019Comp Qtr % Change
Noninterest-bearing demand$7,412,186 $6,926,401 7 %$5,506,861 $5,470,496 $5,324,481 39 %
Savings3,462,942 3,260,040 6 %2,868,840 2,714,191 2,618,188 32 %
Interest-bearing demand5,835,597 5,445,267 7 %5,307,230 5,138,116 5,452,674 7 %
Money market6,464,784 6,496,841 — %6,538,658 6,594,681 6,933,230 (7)%
Network transaction deposits1,528,199 1,544,737 (1)%1,434,128 1,438,908 1,764,961 (13)%
Time deposits2,135,870 2,469,899 (14)%2,636,231 2,746,978 3,107,670 (31)%
Total deposits$26,839,578 $26,143,186 3 %$24,291,949 $24,103,371 $25,201,203 7 %
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.

9


Associated Banc-Corp
Non-GAAP Financial Measures Reconciliation		YTDYTD
($ in millions, except per share data)Sep 2020Sep 20193Q202Q201Q204Q193Q19
Tangible common equity reconciliation(a)
Common equity$3,692 $3,671 $3,534 $3,665 $3,664 
Goodwill and other intangible assets, net(1,178)(1,181)(1,284)(1,265)(1,267)
Tangible common equity$2,513 $2,490 $2,250 $2,401 $2,397 
Tangible assets reconciliation(a)
Total assets$34,699 $35,501 $33,908 $32,386 $32,596 
Goodwill and other intangible assets, net(1,178)(1,181)(1,284)(1,265)(1,267)
Tangible assets$33,520 $34,321 $32,624 $31,122 $31,329 
Average tangible common equity and average common equity tier 1 reconciliation(a)
Common equity$3,611 $3,601 $3,681 $3,566 $3,585 $3,658 $3,647 
Goodwill and other intangible assets, net(1,244)(1,253)(1,180)(1,281)(1,272)(1,266)(1,269)
Tangible common equity2,367 2,347 2,501 2,285 2,313 2,392 2,378 
   Modified CECL transitional amount112 N/A120 115 101 N/AN/A
Accumulated other comprehensive loss (income)5 80 (4)8 10 37 42 
Deferred tax assets (liabilities), net45 47 42 45 47 48 49 
Average common equity Tier 1$2,528 $2,474 $2,660 $2,453 $2,471 $2,476 $2,469 
Average tangible assets reconciliation(a)
Total assets$34,329 $33,338 $35,550 $34,846 $32,577 $32,182 $33,154 
Goodwill and other intangible assets, net(1,244)(1,253)(1,180)(1,281)(1,272)(1,266)(1,269)
Tangible assets$33,085 $32,084 $34,371 $33,565 $31,305 $30,916 $31,885 
Selected trend information(b)
Wealth management fees(c)
63 62 21 21 21 22 21 
Service charges and deposit account fees41 47 14 11 15 16 17 
Card-based fees29 30 10 9 10 10 10 
Other fee-based revenue14 14 5 5 4 5 5 
Fee-based revenue147 153 51 46 50 52 53 
Other282 135 25 208 48 41 48 
Total noninterest income$428 $288 $76 $254 $98 $93 $101 
Selected equity and performance ratios(a)(e)
Tangible common equity / tangible assets7.50 %7.25 %6.90 %7.71 %7.65 %
Return on average equity8.20 %8.83 %4.46 %15.55 %4.80 %7.31 %8.47 %
Return on average tangible common equity12.79 %13.86 %6.36 %25.45 %7.31 %11.33 %13.27 %
Return on average common equity Tier 111.97 %13.15 %5.98 %23.71 %6.84 %10.94 %12.78 %
Return on average tangible assets0.97 %1.06 %0.52 %1.78 %0.59 %0.93 %1.04 %
Efficiency ratio reconciliation(f)
Federal Reserve efficiency ratio62.34 %64.18 %85.41 %43.49 %70.37 %69.14 %66.55 %
Fully tax-equivalent adjustment(0.75)%(0.83)%(1.29)%(0.39)%(0.96)%(0.91)%(0.90)%
Other intangible amortization(0.80)%(0.79)%(0.87)%(0.65)%(0.95)%(0.93)%(0.89)%
Fully tax-equivalent efficiency ratio60.80 %62.58 %83.25 %42.46 %68.47 %67.32 %64.78 %
Acquisition related costs adjustment(0.24)%(0.65)%(0.08)%(0.12)%(0.58)%(0.45)%(0.53)%
Provision for unfunded commitments adjustment(1.64)%0.16 %2.87 %(1.91)%(5.18)%0.34 %(0.33)%
Asset gains (losses), net adjustment10.89 %0.16 %(0.11)%22.10 %(0.02)%0.09 %0.18 %
3Q 2020 Initiatives(7.07)%— %(22.90)%— %— %— %— %
Adjusted efficiency ratio62.74 %62.24 %63.00 %62.53 %62.70 %67.30 %64.11 %
Acquisition Related Costs, Gain on Sale of ABRC, & 3Q20 Initiatives(d)
YTD 2020
YTD 2020 per share data(g)
3Q 2020
3Q 2020 per share data(g)
2Q 2020
2Q 2020 per share data(g)
1Q 2020
1Q 2020 per share data(g)
GAAP earnings: $227 $1.46 $40 $0.26 $145 $0.94 $42 $0.27 
Net of Tax
Acquisition Related Costs (noninterest expense)2 0.01 — — — — 1 0.01 
Gain on Sale of ABRC (asset gains, net)(104)(0.68)— — (104)(0.68)— — 
Q3 Initiatives
Severance related to Optimization Plans (Personnel)
7 0.05 7 0.05 — — — — 
Branch Consolidations Costs (Occupancy and Other)
4 0.03 4 0.03 — — — — 
Loss on prepayment of FHLB Advances (Expense)
33 0.22 33 0.22 — — — — 
Re-organization (Income Tax Benefit)
(63)(0.41)(49)(0.32)(14)(0.09)— — 
Earnings, excluding above items:$106 $0.68 $35 $0.24 $27 $0.17 $43 $0.28 
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)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.
(e)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.
(f)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 excludes the provision for unfunded commitments, other intangible amortization, acquisition related costs and 3Q20 initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net, acquisition related costs, and asset gains (losses), net. Management believes the adjusted efficiency ratio is a meaningful measure as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and provides a better measure as to how the Corporation is managing its expenses by adjusting for acquisition related costs, provision for unfunded commitments, and asset gains (losses), net.
(g)Diluted earnings and per share data presented after-tax.
10


3Q20 Pre-tax Pre-Provision income, excluding 3Q20 Initiatives(d)
3Q 2020
Pre-tax pre-provision income
Loss before income taxes$(13)
Provision for credit losses43 
Pre-tax pre-provision income$30 
3Q20 Announced Initiatives
Loss on prepayments of FHLB Advances$45 
Severance10 
Branch sales & consolidations6 
3Q20 Announced Initiatives$60 
Pre-tax pre-provision income, excluding 3Q20 initiatives$90 
11

Exhibit 99.2 THIRD QUARTER 2020 EARNINGS PRESENTATION October 22, 2020

 
FORWARD-LOOKING STATEMENTS Important note regarding forward-looking statements: Statements made in this presentation 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. These forward-looking statements include: management plans relating to the pending branch sales described herein (“pending sales”); the expected timing of the completion of the pending sales; the ability to complete the pending sales; the ability to obtain any required regulatory approvals; any statements of the plans and objectives of management for future operations, products or services; any statements of expectation or belief; projections related to certain financial results or other benefits of the pending sales; and any statements of assumptions underlying any of the foregoing. 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 Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference. Additional factors which may cause actual results of the pending sales to differ materially from those contained in forward-looking statements are the possibility that expected benefits of the pending sales may not materialize in the timeframe expected or at all, or may be more costly to achieve; the pending sales may not be timely completed, if at all; that required regulatory approvals are not obtained or other customary closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of shareholders, customers, employees or other constituents to the pending sales; and diversion of management time on acquisition-related matters. Trademarks: All trademarks, service marks, and trade names referenced in this material are official trademarks and the property of their respective owners. Presentation: Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These non-GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance with GAAP. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation. 1

 
3Q 2020 ACTIONS We executed several initiatives to drive efficiency and improve earnings in 2021 FY 2021 Expected Pretax Run Rate Initiative Details Q3 Impact Impact Pending sales and/or $10 million of ~ $40 million consolidations of 22 severance expense expense branches (9% of and $6 million of real reduction network; ~100 FTEs) estate related expense Branch optimization & Corporate, (all pretax) Internal efficiency initiatives managerial, and back office streamlining expected to reduce FTEs by ~200 by year end Prepaid $950 million of $45 million loss on ~ $20 million net FHLB advances prepayment of FHLB interest income FHLB liability restructuring & advances (pretax) improvement Reorganization of our Reorganization of Net income tax benefit securities and real estate subsidiaries generated of $49 million (after lending subsidiaries a net income tax tax) benefit 2

 
3Q 2020 PTPP INCOME WALKFORWARD $60 million of pre-tax restructuring charges were incurred as part of our 3Q 20 efficiency initiatives Pre-tax pre-provision income of $901 million when adjusted for $60 million of restructuring costs. ($ in millions) $0 1 2 1 A non-GAAP measure. Please refer to the appendix for a reconciliation of pre-tax pre-provision income to loss before income taxes. 3 2 A non-GAAP measure. Please refer to the appendix for a reconciliation of pre-tax pre-provision income excluding Q3 initiatives to loss before income taxes.

 
3Q 2020 UPDATE Associated took actions in 3Q 2020 to improve efficiency and optimize our branch network Third Quarter 2020 Earnings of $0.26 Per Common Share Including Restructuring Charges and Tax Benefits 1 $60 million of restructuring charges ($45 million2 after taxes), were more than offset by a $49 million tax benefit from reorganizing our securities and real estate lending subsidiaries. 1 A non-GAAP measure. Please refer to the appendix for a reconciliation of earning per share excluding 3Q initiatives and tax benefits to earnings per share. 2 Assuming 25% marginal tax rate 4

 
LOAN TRENDS CRE loans continue to grow while general commercial lines of credit pay down Average Quarterly Loans Average Loan Growth (2Q20 to 3Q20) ($ in billions) ($ in millions) $25.2 $25.0 $23.3 $23.3 $0.8 $1.0 $22.8 Mortgage warehouse $173 PPP $171 $9.2 $8.5 $8.4 $8.8 $8.2 CRE construction $170 CRE investor $142 Power & utilities $79 $5.2 $5.2 $5.3 $5.7 $6.0 $(56) Home equity & other consumer $(61) Oil & gas $(140) REIT $8.3 $8.2 $8.4 $8.3 $8.1 $(213) Residential mortgage $1.3 $1.2 $1.2 $1.2 $1.1 $(493) General commercial 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Commercial & business Commercial real estate Residential mortgage Home equity & other consumer PPP lending 5

 
END OF PERIOD LOAN TRENDS Growth was led by higher specialty commercial and CRE balances, partially offset by general commercial EOP Loan Change1 2Q20 to 3Q20 ($ in millions) Total loans +$171 million (+1%) . Commercial and Business Lending -$35 million (0%) Mortgage warehouse $295 – General commercial balances declined as Power & utilities $204 customers used their excess liquidity to pay down lines CRE construction $151 ▪ Commercial Real Estate Lending +$298 million (+5%) CRE investor $147 – Construction funding along with lower payoffs drove the increase PPP $10 ▪ Total Consumer -$93 million (-1%) $(45) Home equity & other – The decline in consumer lending was driven by consumer continued refinancing and a $70 million portfolio $(48) Residential mortgage sale $(98) Oil & gas $(101) REIT $(343) General commercial 1 Excluding loans held for sale. 6

 
COMMERCIAL COVID-19 RELIEF UPDATE Commercial deferrals have declined by 73% since Q2 2020 Loan Deferrals & Modifications1 Active Deferred and Modified Loans Trend ($ in millions) ▪ We generally granted 90 day deferrals for our commercial customers $839 ▪ Total commercial deferrals have declined approximately 73% since the end of 2Q 2020 ▪ The $839 million of deferrals at Q2 have largely rolled off their initial 90 day term; the remaining $410 deferrals are primarily related to COVID impacted portfolios $286 $227 ▪ Currently, commercial deferrals ($227 million) represent approximately 1.4% of our commercial loan balances2 $1 Q1 20 Q2 20 Aug 20 Sep 20 Oct 19th CRE C&BL 1 Includes completed modifications as of October 19, 2020. 2 Loan balances as of 9/30/2020. 7

 
CONSUMER COVID-19 RELIEF UPDATE Consumer deferrals have declined by 63% from Q2 and most borrowers have not asked for additional help Loan Deferrals & Modifications1 Active Deferred and Modified Loans Trend ($ in millions) ▪ We generally granted six month deferrals to consumers who requested assistance $725 ▪ Total consumer deferrals have declined by $660 approximately 63% since the end of Q2 2020 ▪ As of 10/19/20, 97% of consumer loans previously on deferral are current or less than 30 days past due $376 $269 ▪ $263 million of the active deferrals, as of 10/19/20, are still in their initial deferral period $263 Deferrals on initial term ▪ As of 10/19/20, active consumer deferrals represent approximately 3% of consumer loan $0 balances2 Q1 20 Q2 20 Aug 20 Sep 20 Oct 19th 1 Includes completed modifications as of October 19, 2020. 2 Loan balances as of 9/30/2020. 8

 
ALLOWANCE UPDATE ACLL2 increased $13 million and covered 1.77% of loan balances at the end of 3Q 2020 Third Quarter ACLL Loan Allowance Walkforward ($ in millions) ▪ Allowance for credit losses on loans (ACLL) increased $13 million, or 3%, at the end of 3Q 2020 from 2Q 2020 ▪ ACLL to loans was 1.77%, or 1.84% excluding PPP loans ▪ 3Q 2020 provision of $43 million, down $18 million from 2Q 2020 ▪ CECL forward looking assumptions based on Moody’s September 2020 Baseline forecast Day 1 Net 1Q Net 2Q Net 3Q 9/30/20 ACLL1 CECL Reserve ACLL2 Reserve ACLL2 Reserve ACLL2 ACLL2 / Loan Category 12/31/19 Adoption2 Build2 3/31/20 Build2 06/30/20 Build2 09/30/20 Loans C&BL - excl. Oil & Gas$ 100,594 $ (8,390) $ 29,571 $ 121,775 $ 326 $ 122,101 $ 27,699 $ 149,799 1.76% C&BL Oil & Gas 13,226 55,460 8,880 77,567 6,025 83,592 (32,654) 50,938 15.29% PPP Loans - - - - 808 808 160 968 0.09% CRE - Investor 41,044 2,287 (785) 42,546 16,524 59,070 31,850 90,921 2.10% CRE - Construction 32,447 25,814 7,428 65,688 10,585 76,273 (10,528) 65,745 3.54% Residential Mortgage 16,960 33,215 (6,227) 43,947 (121) 43,826 (183) 43,643 0.55% Other Consumer 19,008 22,760 777 42,546 363 42,909 (2,937) 39,972 3.71% Total$ 223,278 $ 131,147 $ 39,643 $ 394,069 $ 34,510 $ 428,579 $ 13,408 $ 441,988 1.77% Total (excl. PPP Loans)$ 223,278 $ 131,147 $ 39,643 $ 394,069 $ 33,702 $ 427,770 $ 13,248 $ 441,019 1.84% ($ in thousands) 1 Includes ALLL and the allowance for unfunded commitments. 9 2 Includes funded and unfunded reserve for loans, excludes reserve for HTM securities.

 
CREDIT QUALITY – QUARTERLY TRENDS Nonaccrual loans increased in 3Q 2020 driven by CRE retail loans Potential Problem Loans1 Nonaccrual Loans1 ($ in millions) ($ in millions) $307 $293 $232 $234 $58 $72 $161 $17 $63 $172 $79 $133 $67 $60 $129 $118 $137 $11 $43 $1 $8 $32 $36 $23 $29 $50 $150 $186 $162 $145 $101 $118 $93 $95 $107 $110 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Oil and gas Other COVID4 All other loans Oil and gas Other COVID4 All other loans Net Charge Offs1 ACLL2 to Total Loans / Oil and Gas Loans1 ($ in millions) 19.36% $30 16.63% $26 15.29% $3 $20 $17 $14 $21 $9 $25 3.83% $21 $10 2.69% 1.62% 1.73% 1.77% $8 1.04% 0.98% $4 $2 $6 3Q 20193 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Oil and gas Other COVID4 All other loans Oil and gas ACLL / Oil and gas Loans ACLL / loans 1 At period end. 10 2 ACLL figure does not include ~$70,000 for HTM securities in 3Q20. 4 Please see slide 19 for more detail on our Key COVID Commercial 3 3Q 2019 included a net recovery of $1 million for all other loans. Loan Exposures.

 
DEPOSIT PORTFOLIO TRENDS We continue to improve the mix of low-cost, core customer deposit funding Average Quarterly Deposits EOP Funding Change 2Q20 to 3Q20 ($ in billions) ($ in millions) $26.8 $25.2 $26.1 Interest-bearing demand $384 $24.3 $24.1 Savings $134 $7.4 $5.3 $6.9 Money Market $56 $5.5 $5.5 $(85) Noninterest-bearing demand $5.5 $(106) Network transaction deposits $5.1 $5.3 $5.4 $5.8 $(222) Time deposits $2.6 $2.7 $2.9 $3.3 $3.5 EOP Low-cost Deposit Mix Trend $6.9 61.5% 62.7% 54.7% 55.8% 58.2% $6.6 $6.5 $6.5 $6.5 28.0% 22.5% 22.9% 23.8% 28.5% $3.1 $2.7 $2.6 $2.5 $2.1 21.3% 21.4% 22.6% 20.2% 21.5% $1.8 $1.4 $1.4 $1.5 $1.5 10.8% 11.5% 11.8% 12.8% 13.2% 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Noninterest-bearing demand Savings Time deposits Interest-bearing demand Money market Network transaction deposits 11

 
NET INTEREST INCOME AND YIELD TRENDS Net interest margin bottomed out during Q3 and has started to move back up in September Net Interest Income and Net Interest Margin Average Yields ($ in millions) 2.85% 2.89% 3.65% 2.30% 2.35% 3.14% 3.07% 3.04% 3.05% 3.06% 3.08% 3.01% 2.99% 2.94% 2.96% 2.93% 2.89% 2.76% 2.52% 2.58% 1Q20 - $203 2.60% 2.59% 2Q20 - $190 3Q20 - $182 1.52% 1.43% 1.37% 1.30% 1.21% 1.12% 0.57% 0.61% 0.60% 0.55% 0.54% 0.47% 0.30% 0.22% 0.28% 0.25% 0.21% 0.19% Jan Feb Mar Apr May Jun July Aug Sep Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Time Deposits Net interest income Net interest margin Commercial real estate loans Commercial and business Total interest- lending loans1 bearing liabilities Total residential mortgage Total interest- 1 Excludes PPP loans. loans bearing deposits 12

 
NONINTEREST INCOME TRENDS Mortgage banking income remains strong and service charges have rebounded during Q3 Noninterest Income Trend Net Mortgage Banking Income ($ in millions) ($ in millions) $12 $13 $11 $254 $7 $6 $101 $98 $93 $76 $47 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 $40 $48 $51 $25 Service Charges & Deposit Account Fees ($ in millions) $17 $17 $16 $15 $14 $16 $11 $15 $14 $11 $21 $22 $21 $21 $21 $16 $15 $14 $14 $15 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Card-based and other Wealth management fee based Asset gains (losses), net Service charges and deposit 13 account fees Insurance & Other

 
EXPENSE TRENDS 3Q 2020 included $60 million of restructuring costs3 which will improve the expense run rate going into 2021 Noninterest Expense Business Development and Advertising ($ in millions) ($ in millions) $228 $8 $8 $201 $204 $192 $50 $6 $2 $1 $183 $4 $4 $2 $1 $76 $82 $76 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 $72 $69 Noninterest Expense1 / Average Assets 2.51% 2.55% 2.40% 2.37% $123 $121 $114 $111 $109 2.12% 2.39% 2.45% 2.35% 2.09% 1.87% 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Personnel expense Other Adjusted noninterest Noninterest expense / Restructuring costs (FHLB & Acquisition expenses expense2 / average assets average assets Real estate expenses) 1 Annualized 2 A non-GAAP financial measure, adjusted noninterest expense excludes acquisition and restructuring related costs. Please refer to the appendix for a reconciliation of adjusted noninterest expense to noninterest expense. 3 Personnel expense includes $10 million of severance which is included in the $60 million of total restructuring expenses. 14

 
STRONG CAPITAL POSITION Tangible Common Equity ratio increased 25 bps to 7.50% during 3Q 2020 Regulatory Capital Ratios Capital Ratio Walkdowns 13.8% 13.8% 12.6% 11.6% 11.6% Common Equity Tier 1 Ratio1 10.3% 10.2% 10.4% 9.4% Tangible Common Equity Ratio2 Common Equity Tier 1 Tier 1 Capital Total Capital 2Q 2020 Restructuring & Earnings Dividends Other 3Q 2020 tax benefits excluding Capital restructuring 1Q 2020 2Q 2020 3Q 2020 and tax benefits 1 CET1 CECL adoption impact includes modified transition amount. 2 Tangible common equity / tangible assets. This is a non-GAAP financial measure. See Appendix for a reconciliation of non-GAAP financial measures to 15 GAAP financial measures.

 
2020 UPDATED OUTLOOK We are updating guidance for select items in Q4 and reiterating our expense guidance for Q4 and 2021 Fee Revenue: Net Interest Margin: Continue positive trend 4Q 2020 ~ 2.50% through end of 2020 2020 / 2021 Guidance Expenses: Effective Tax Rate: 4Q 2020 - $175 million1 FY 2020 - low to mid FY 2021 - $685 million single digit 1 Includes $3 million of restructuring costs. 16

 
APPENDIX

 
TOTAL LOANS OUTSTANDING BALANCES AS OF SEPTEMBER 30, 2020 Well diversified $25 billion loan portfolio ($ in millions) % of Total % of Total 09/30/20201 Loans 09/30/20201 Loans C&BL (by NAICS2) CRE (by property type) Utilities$ 1,802 7.2% Multi-Family$ 1,997 8.0% Wholesale/Manufacturing 1,717 6.9% Office/Mixed 1,268 5.1% Finance and Insurance 1,688 6.7% Industrial 1,049 4.2% Real Estate (includes REITs) 1,173 4.7% Retail 990 4.0% Construction 418 1.7% Single Family Construction 384 1.5% Mining3 390 1.6% Hotel/Motel 247 1.0% Health Care and Social Assistance 387 1.5% Parking Lots and Garages 102 0.4% Retail Trade 361 1.4% Land 99 0.4% Professional, Scientific, and Tech. Serv. 323 1.3% Mobile Home Parks 16 0.1% Rental and Leasing Services 272 1.1% Other 29 0.1% Transportation and Warehousing 196 0.8% Total CRE$ 6,181 24.7% Waste Management 188 0.8% Accommodation and Food Services 172 0.7% Consumer Information 125 0.5% Residential Mortgage$ 7,886 31.5% Arts, Entertainment, and Recreation 104 0.4% Home Equity 762 3.0% Management of Companies & Enterprises 86 0.3% Student Loans 121 0.5% Financial Investments & Related Activities 79 0.3% Credit Cards 105 0.4% Educational Services 60 0.2% Other Consumer 90 0.4% Public Administration 28 0.1% Total Consumer$ 8,963 35.8% Agriculture, Forestry, Fishing and Hunting 9 0.0% Other 282 1.1% Total C&BL$ 9,861 39.4% Total Loans$ 25,004 100.0% 1 All values as of period end. 2 North American Industry Classification System. 3 Includes $333 million of oil and gas loans and one $21 million fracking sand mining company loan. 18

 
KEY COVID COMMERCIAL LOAN EXPOSURES1 Key COVID commercial loan exposures are spread across multiple industries without large concentrations ($ in millions) % of total C&BL Utilization CRE Utilization Total loans Retailers/Shopping Centers2 Retailers$ 88.5 43%$ 681.0 90%$ 769.4 3.08% Retail REITs 224.5 51% 142.4 100% 366.9 1.86% Subtotal 313.0 48% 823.3 92% 1,136.3 4.64% Oil & Gas Oil & Gas 333.2 67% - 0% 333.2 1.33% Subtotal 333.2 67% - 0% 333.2 1.33% Hotels, Amusement & Related Hotels 0.1 21% 247.3 85% 247.4 0.99% Parking Lots and Garages 22.3 61% 101.8 90% 124.0 0.50% Casinos 28.0 100% - 0% 28.0 0.11% Recreation & Entertainment 25.1 41% 6.9 99% 32.1 0.13% Movie Theaters 10.3 31% - 0% 10.3 0.04% Subtotal 85.8 54% 356.0 86% 441.8 1.77% Restaurants Full-Service 69.8 80% 13.2 99% 82.9 0.33% Limited-Service & Other 21.7 93% 11.4 100% 33.0 0.13% Subtotal 91.5 83% 24.5 99% 116.0 0.46% Transportation & Other Transportation Services 50.9 80% - 0% 50.9 0.20% Fracking Sand Mining 20.6 72% - 0% 20.6 0.08% Subtotal 71.5 77% - 0% 71.5 0.29% Total$ 895.0 59%$ 1,203.8 90%$ 2,098.8 8.39% 1 As of 9/30/2020. 2 C&BL excludes grocers, convenience stores, vehicle dealers, auto parts and tire dealers, direct and mail order retailers, and building material dealers; CRE excludes properties primarily anchored by grocers, self-storage facilities, and vehicle dealers. 19

 
LOAN STRATIFICATION OUTSTANDINGS AS OF SEPTEMBER 30, 2020 C&BL by Geography Total Loans1 CRE by Geography $9.9 billion $6.2 billion Illinois Illinois Minnesota Illinois 17% 9% 15% Minnesota 24% 8% Other Texas Minnesota 3 Midwest2 Wisconsin 7% 10% 25% 22% Other Wisconsin Wisconsin 29% Other 26% Midwest2 Midwest2 10% 13% Other Texas 35% Other Other 9% 19% 17% Texas 5% C&BL by Industry Oil and Gas Lending4 CRE by Property Type $9.9 billion $333 million $6.2 billion South Texas & Eagle Retail Power & Utilities Ford 16% 18% 10% East Texas Real Estate North Office / Mixed Manufacturing & 12% Louisiana Use Arkansas Wholesale Trade Oil & Gas Permian 20% 15% Multi-Family 17% 3% 33% 32% Rockies Finance & 9% Insurance Industrial 17% Marcellus 17% Utica Appalachia 13% Bakken 2% Other 1-4 Family Other Mid- 5% Construction 5% 1Excludes $315 million Other consumer portfolio. (Onshore Continent Hotel / Motel 2 Lower 48) (primarily 4% Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 20 3Principally reflects the oil and gas portfolio. 10% OK & KS) 4Chart based on commitments of $498 million. 7%

 
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS ($ IN MILLIONS) Adjusted Noninterest Expense Reconcilation1 3Q19 4Q19 1Q20 2Q20 3Q20 Noninterest expense $201 $204 $192 $183 $228 Restructuring costs 0 0 0 0 50 Acquisition related costs 2 1 2 1 0 Severance / frontline pay 0 4 0 2 10 Adjusted noninterest expense $199 $199 $190 $181 $167 Tangible Common Equity and Tangible Assets Reconciliation2 2Q20 3Q20 Common equity $3,671 $3,692 Goodwill and other intangible assets, net (1,181) (1,178) Tangible common equity $2,490 $2,513 Total assets $35,501 $34,699 Goodwill and other intangible assets, net (1,181) (1,178) Tangible assets $34,321 $33,520 3Q20 Pre-Tax Pre-Provision Income, Excluding 3Q20 Initiatives Reconciliation1 3Q20 Pre-tax pre-provision income Loss before income taxes $(13) Provision before income taxes 43 Pre-tax pre-provision income $30 3Q20 announced initiatives Loss on prepayments of FHLB Advances $45 Severance 10 Branch sales & consolidations 6 3Q20 announced initiatives $60 Pre-tax pre-provision income, excluding 3Q20 initiatives $90 1 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, provide greater understanding of ongoing operations and enhance comparability of results with prior periods. 21 2 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.

 
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS ($ IN MILLIONS, EXCEPT PER SHARE DATA) YTD 2020 3Q20 per per share share Acquisition Related Costs, Gain on Sale of ABRC, & 3Q20 Initiatives Reconciliation1 YTD 2020 data 3Q 2020 data GAAP earnings $227 $1.46 $40 $0.26 Net of Tax Acquisition related costs (noninterest expense) 2 0.01 0 0.00 Gain on sale of ABRC (asset gains, net) (104) (0.68) 0 0.00 Q3 Initiatives Severance related to optimization plans (personnel) 7 0.05 7 0.05 Branch consolidations costs (occupancy and other) 4 0.03 4 0.03 Loss on prepayment of FHLB advances (expense) 33 0.22 33 0.22 Re-organization (income tax benefit) (63) (0.41) (49) (0.32) Earnings, excluding items above $106 $0.68 $35 $0.24 1 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, provide greater understanding of ongoing operations and enhance comparability of results with prior periods. 22

 

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