Document


			NEWS RELEASE Investor Contact: Ben McCarville, 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 Fourth Quarter 2022 Earnings of $0.70 Per Common Share and $2.34 Per Common Share for the Full Year 2022.

GREEN BAY, Wis. -- January 26, 2023 -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today reported net income available to common equity ("earnings") of $106 million, or $0.70 per common share, for the quarter ended December 31, 2022. These amounts compare to earnings of $74 million, or $0.49 per common share for the quarter ended December 31, 2021 and earnings of $93 million, or $0.62 per common share for the quarter ended September 30, 2022. For the year ended December 31, 2022, the Company reported earnings of $355 million, or $2.34 per common share. These amounts compare to earnings of $334 million, or $2.18 per common share, for the year ended December 31, 2021.

“This quarter served as a fitting exclamation point for the most profitable year in our company’s 162-year history,” said President and CEO Andy Harmening. “By listening to our customers and empowering our colleagues, we’ve enhanced engagement, deepened relationships, and delivered more meaningful solutions to the communities we serve. This momentum has enabled us to add nearly $4.6 billion in high-quality loan balances over the course of the year, expand margins, drive operating leverage into the double-digits, and enhance our profitability profile. Importantly, we’ve achieved all of this without abandoning our foundational discipline on expenses and credit quality."

“While we’re proud of what we’ve accomplished so far, we feel like we’re just getting started,” Harmening continued. “As we shift to 2023, we’re closely monitoring the economic environment, but continue to feel well-positioned thanks to the diversifying benefits of our strategic plan and our decade-long effort to de-risk our balance sheet. We’ve laid the groundwork to create a stronger Associated Bank for years to come.”

2022 SUMMARY (all comparisons to 2021)

•End of period total commercial loans were up $2.4 billion to $18.0 billion

•End of period total consumer loans were up $2.2 billion to $10.8 billion

•End of period total deposits were up $1.2 billion to $29.6 billion

•Net interest income was up $231 million to $957 million

•Noninterest income was down $50 million to $282 million

•Noninterest expense was up $37 million to $747 million

•Provision for credit losses was $33 million, compared to a negative provision of $88 million in 2021

•Net income available to common equity was up $21 million to $355 million

•Earnings per common share increased $0.16 to $2.34

Loans

Fourth quarter 2022 period-end total loans of $28.8 billion were up 4%, or $982 million, from the prior quarter and were up 19%, or $4.6 billion from the same period last year. With respect to fourth quarter 2022 period-end balances by loan category:

•Commercial and business lending increased $179 million from the prior quarter and increased $1.3 billion from the same period last year to $10.8 billion.

•Commercial real estate lending increased $336 million from the prior quarter and increased $1.0 billion from the same period last year to $7.2 billion.

•Consumer lending increased $467 million from the prior quarter and increased $2.2 billion from the same period last year to $10.8 billion.

Fourth quarter 2022 average total loans of $28.2 billion were up 4%, or $1.1 billion, from the prior quarter and were up 18%, or $4.4 billion, from the same period last year. With respect to fourth quarter 2022 average balances by loan category:

•Commercial and business lending increased $338 million from the prior quarter and increased $1.6 billion compared to the same period last year to $10.5 billion.

•Commercial real estate lending increased $294 million from the prior quarter and increased $928 million from the same period last year to $7.1 billion.

•Consumer lending increased $508 million from the prior quarter and increased $1.9 billion from the same period last year to $10.6 billion.

Full year 2022 average loans of $26.2 billion were up 9%, or $2.1 billion, from 2021. With respect to full year 2022 average balances by loan category:

•Commercial and business lending increased $748 million to $9.9 billion.

•Commercial real estate lending increased $439 million to $6.6 billion.

•Consumer lending increased $955 million to $9.8 billion.

In 2023, we expect total loan growth of 7% to 9% on an end of period basis as compared to the year ended December 31, 2022.

Deposits

Fourth quarter 2022 period-end deposits of $29.6 billion were up 1%, or $438 million, from the prior quarter and were up 4%, or $1.2 billion from the same period last year. With respect to fourth quarter 2022 period-end balances by deposit category:

•Noninterest-bearing demand deposits decreased $464 million from the prior quarter and decreased $743 million from the same period last year to $7.8 billion.

•Savings decreased $104 million from the prior quarter and increased $195 million from the same period last year to $4.6 billion.

•Interest-bearing demand deposits decreased $21 million from the prior quarter and increased $81 million from the same period last year to $7.1 billion.

•Money market deposits increased $330 million from the prior quarter and increased $1.1 billion from the same period last year to $8.2 billion.

•Total time deposits increased $696 million from the prior quarter and increased $583 million from the same period last year to $1.9 billion.

•Network transaction deposits (included in money market and interest-bearing deposits) increased $115 million from the prior quarter and increased $212 million from the same period last year to $979 million.

Fourth quarter 2022 average deposits of $29.3 billion were up 2%, or $453 million, from the prior quarter and were up 3%, or $925 million from the same period last year. With respect to fourth quarter 2022 average balances by deposit category:

•Noninterest-bearing demand deposits decreased $31 million from the prior quarter and decreased $328 million from the same period last year to $8.1 billion.

•Savings decreased $75 million from the prior quarter and increased $293 million from the same period last year to $4.7 billion.

•Interest-bearing demand deposits increased $244 million from the prior quarter and increased $325 million from the same period last year to $6.8 billion.

•Money market deposits increased $55 million from the prior quarter and increased $490 million from the same period last year to $7.4 billion.

•Total time deposits increased $232 million from the prior quarter and increased $82 million from the same period last year to $1.5 billion.

•Network transaction deposits increased $28 million from the prior quarter and increased $63 million from the same period last year to $901 million.

Full year 2022 average deposits of $28.8 billion were up 4%, or $1.1 billion from 2021. With respect to full year 2022 average balances by deposit category:

•Noninterest-bearing demand deposits increased $88 million to $8.2 billion.

•Savings increased $514 million to $4.7 billion.

•Interest-bearing demand deposits increased $525 million to $6.6 billion.

•Money market deposits increased $224 million to $7.2 billion.

•Network transaction deposits decreased $108 million to $822 million.

•Time deposits decreased $179 million to $1.3 billion.

Net Interest Income and Net Interest Margin

Full year 2022 net interest income of $957 million was up 32%, or $231 million, from 2021. Net interest margin of

2.91% was up 52 basis points from the prior year. The increases in net interest income and margin were driven by the execution of our strategic initiatives and rising interest rates during 2022.

•The average yield on total earning assets increased 85 basis points from the prior year to 3.47%.

•The average cost of interest-bearing liabilities increased 45 basis points from the prior year to 0.78%.

•The net free funds benefit increased 12 basis points from the prior year to 0.22%.

Fourth quarter 2022 net interest income of $289 million was up 9%, or $25 million, from the prior quarter. Net interest margin of 3.31% was up 18 basis points from the prior quarter. Compared to the same period last year, net interest income increased 55%, or $102 million, and the net interest margin increased 91 basis points.

•The average yield on total earning assets for the fourth quarter of 2022 increased 74 basis points from the prior quarter and increased 187 basis points from the same period last year to 4.46%.

•The average cost of total interest-bearing liabilities for the fourth quarter of 2022 increased 77 basis points from the prior quarter and increased 131 basis points from the same period last year to 1.58%.

•The net free funds benefit for the fourth quarter of 2022 increased 21 basis points from the prior quarter and increased 35 basis points from the same period last year to 0.43%.

We expect total net interest income growth of 15% to 17% in 2023.

Noninterest Income

Full year 2022 noninterest income of $282 million decreased $50 million from the prior year. The decrease was largely influenced by market-driven decreases in mortgage banking income and wealth management fees, customer-friendly changes to our overdraft program, and asset gains recognized during 2021. With respect to 2022 noninterest income line items:

•Mortgage Banking, net decreased $32 million from the prior year, driven by slowing refinance activity and higher retention of mortgages on our balance sheet.

•Asset gains (losses), net decreased $10 million from the prior year, driven primarily by gains on private equity investments in 2021.

•Wealth management fees decreased $6 million from the prior year, driven by lower market valuations.

•Service charges and deposit account fees decreased $2 million from the prior year. Guided by customer feedback, we announced several customer-friendly changes to our overdraft program in the third quarter of 2022.

Fourth quarter 2022 total noninterest income of $62 million decreased $9 million from the prior quarter and decreased $20 million from the same period last year. With respect to fourth quarter 2022 noninterest income line items:

•Investment securities gains (losses) decreased $8 million from the prior quarter and decreased $2 million from the same period last year.

•Capital markets fees decreased $2 million from the prior quarter and decreased $4 million from the same period last year.

•Mortgage Banking, net was $2 million for the fourth quarter, flat to the prior quarter and down $6 million from the same period last year, driven by slowing refinance activity and higher retention of mortgages on our balance sheet.

We expect total noninterest income to compress by 6% to 8% in 2023.

Noninterest Expense

Full year 2022 noninterest expense of $747 million increased 5%, or $37 million, from the prior year as we continued to invest in people and technology. With respect to full year 2022 noninterest expense line items:

•Personnel expense increased $27 million from the prior year, largely driven by higher incentive compensation and additional hiring tied to our strategic initiatives.

•Technology expense increased $9 million from the prior year, driven by digital investments tied to our strategic initiatives.

•Business development and advertising increased $4 million from the prior year as business activity picked up throughout the year.

Fourth quarter 2022 total noninterest expense of $197 million increased $1 million from the prior quarter and increased $14 million from the same period last year. With respect to fourth quarter 2022 noninterest expense line items:

•Personnel expense was flat to the prior quarter and increased $11 million from the same period last year.

•Technology expense increased $3 million from the prior quarter and increased $5 million from the same period last year.

•Occupancy expense increased $2 million from the prior quarter and decreased $1 million from the same period last year.

We expect noninterest expense to grow by 4% to 6% in 2023.

Taxes

The fourth quarter 2022 tax expense was $25 million compared to $26 million of tax expense in the prior quarter and $15 million of tax expense in the same period last year. The effective tax rate for fourth quarter 2022 was 18.9% compared to an effective tax rate of 21.4% in the prior quarter and an effective tax rate of 16.5% in the same period last year. The lower effective tax rate in fourth quarter 2021 was due in part to an increase in tax-exempt interest and benefits from bank and corporate owned life insurance.

In 2023, we expect the annual effective tax rate to be between 20% and 21%, assuming no change in the corporate tax rate.

Credit

Full year 2022 provision for credit losses was $33 million, compared to a negative provision of $88 million in the prior year. The increase in provision in 2022 was primarily driven by loan growth related to our strategic initiatives.

The fourth quarter 2022 provision for credit losses was $20 million, compared to a provision of $17 million in the prior quarter and a negative provision of $6 million in the same period last year. With respect to fourth quarter 2022 credit quality:

•Nonaccrual loans of $111 million were down $5 million, or 4%, from the prior quarter and down $19 million, or 15%, from the same period last year. The nonaccrual loans to total loans ratio was 0.39% in the fourth quarter, down from 0.42% in the prior quarter and down from 0.54% in the same period last year.

•Net charge offs of $1 million were down $1 million, or 37%, from the prior quarter and down $5 million, or 82%, from the same period last year.

•The allowance for credit losses on loans (ACLL) of $351 million was up $19 million from the prior quarter and up $32 million from the same period last year. The ACLL to total loans ratio was 1.22% in the fourth quarter, up from 1.20% in the prior quarter and down from 1.32% in the same period last year.

In 2023, we expect to adjust provision to reflect changes to risk grades, economic conditions, loan volumes, and other indications of credit quality.

Capital

The Company’s capital position remains strong, with a CET1 capital ratio of 9.35% at December 31, 2022. The Company’s capital ratios continue to be in excess of the Basel III “well-capitalized” regulatory benchmarks on a fully phased in basis.

FOURTH QUARTER 2022 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 26, 2023. 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 2022 earnings call. The fourth quarter 2022 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 $39 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from more than 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois and Minnesota. The Company also operates loan production offices in Indiana, Michigan, Missouri, New York, 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,” "project," "guidance," 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)	December 31, 2022		September 30, 2022		Seql Qtr $ Change		June 30, 2022		March 31, 2022		December 31, 2021		Comp Qtr $ Change
Assets
Cash and due from banks	$	436,952	$	386,231	$	50,721	$	397,364	$	334,138	$	343,831	$	93,121
Interest-bearing deposits in other financial institutions	156,693		112,173		44,520		436,887		166,929		681,684		(524,991)
Federal funds sold and securities purchased under agreements to resell	27,810		4,015		23,795		32,820		—		—		27,810
Investment securities available for sale, at fair value	2,742,025		2,487,312		254,713		2,677,511		2,780,803		4,332,015		(1,589,990)
Investment securities held to maturity, net, at amortized cost	3,960,398		3,951,491		8,907		3,945,206		3,939,855		2,238,947		1,721,451
Equity securities	25,216		24,879		337		19,039		18,560		18,352		6,864
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	295,496		279,334		16,162		237,616		168,281		168,281		127,215
Residential loans held for sale	20,383		51,134		(30,751)		42,676		91,582		136,638		(116,255)
Commercial loans held for sale	—		—		—		44,721		—		—		—
Loans	28,799,569		27,817,280		982,289		26,494,698		24,531,926		24,224,949		4,574,620
Allowance for loan losses	(312,720)		(292,904)		(19,816)		(280,771)		(279,058)		(280,015)		(32,705)
Loans, net	28,486,849		27,524,376		962,473		26,213,927		24,252,867		23,944,934		4,541,915
Tax credit and other investments	276,773		275,247		1,526		275,165		284,561		293,733		(16,960)
Premises and equipment, net	376,906		379,462		(2,556)		387,633		387,550		385,173		(8,267)
Bank and corporate owned life insurance	676,530		677,129		(599)		675,347		679,538		680,021		(3,491)
Goodwill	1,104,992		1,104,992		—		1,104,992		1,104,992		1,104,992		—
Other intangible assets, net	49,282		51,485		(2,203)		53,687		55,890		58,093		(8,811)
Mortgage servicing rights, net(a)	77,351		78,352		(1,001)		76,570		67,015		54,862		22,489

Interest receivable	144,449		115,782		28,667		95,426		83,120		80,528		63,921
Other assets	547,621		546,214		1,407		519,403		540,218		582,168		(34,547)
Total assets	$	39,405,727	$	38,049,607	$	1,356,120	$	37,235,990	$	34,955,900	$	35,104,253	$	4,301,474
Liabilities and stockholders’ equity
Noninterest-bearing demand deposits	$	7,760,811	$	8,224,579	$	(463,768)	$	8,085,702	$	8,315,699	$	8,504,077	$	(743,266)
Interest-bearing deposits	21,875,343		20,974,003		901,340		20,490,874		20,089,710		19,962,353		1,912,990
Total deposits	29,636,154		29,198,581		437,573		28,576,577		28,405,409		28,466,430		1,169,724
Federal funds purchased and securities sold under agreements to repurchase	585,139		276,674		308,465		682,839		368,768		319,532		265,607
Commercial paper	20,798		7,687		13,111		22,781		30,593		34,730		(13,932)

FHLB advances	4,319,861		3,777,478		542,383		3,258,039		1,537,948		1,621,047		2,698,814
Other long-term funding	248,071		249,484		(1,413)		249,820		249,797		249,324		(1,253)
Allowance for unfunded commitments	38,776		39,776		(1,000)		36,776		38,776		39,776		(1,000)
Accrued expenses and other liabilities	541,438		545,976		(4,538)		449,776		376,322		348,560		192,878
Total liabilities	35,390,237		34,095,656		1,294,581		33,276,608		31,007,613		31,079,399		4,310,838
Stockholders’ equity
Preferred equity	194,112		194,112		—		193,195		193,195		193,195		917






Common equity	3,821,378		3,759,840		61,538		3,766,187		3,755,092		3,831,658		(10,280)
Total stockholders’ equity	4,015,490		3,953,952		61,538		3,959,382		3,948,287		4,024,853		(9,363)
Total liabilities and stockholders’ equity	$	39,405,727	$	38,049,607	$	1,356,120	$	37,235,990	$	34,955,900	$	35,104,253	$	4,301,474

Numbers may not sum due to rounding.

(a) On January 1, 2022, the Corporation made the irrevocable election to account for mortgage servicing rights, net at fair value. For all prior periods, mortgage servicing rights, net were carried at lower of cost or market.


Associated Banc-Corp Consolidated Statements of Income (Unaudited)					Comp Qtr				YTD		YTD		Comp YTD
($ in thousands, except per share data)	4Q22		4Q21		$ Change		% Change		Dec 2022		Dec 2021		$ Change		% Change
Interest income
Interest and fees on loans	$	349,403	$	170,809	$	178,594	105	%	$	992,642	$	693,729	$	298,913	43	%
Interest and dividends on investment securities
Taxable	21,435		13,317		8,118		61	%	75,444		37,916		37,528		99	%
Tax-exempt	16,666		15,569		1,097		7	%	65,691		58,710		6,981		12	%
Other interest	3,779		2,031		1,748		86	%	11,475		7,833		3,642		46	%
Total interest income	391,283		201,726		189,557		94	%	1,145,252		798,189		347,063		43	%
Interest expense
Interest on deposits	60,719		3,677		57,042		N/M		98,309		18,622		79,687		N/M
Interest on federal funds purchased and securities sold under agreements to repurchase	2,280		40		2,240		N/M		3,480		143		3,337		N/M
Interest on other short-term funding	—		2		(2)		(100)	%	2		22		(20)		(91)	%
Interest on FHLB Advances	36,824		8,514		28,310		N/M		75,487		36,493		38,994		107	%
Interest on long-term funding	2,470		2,730		(260)		(10)	%	10,653		17,053		(6,400)		(38)	%
Total interest expense	102,294		14,963		87,331		N/M		187,931		72,334		115,597		160	%
Net interest income	288,989		186,763		102,226		55	%	957,321		725,855		231,466		32	%
Provision for credit losses	19,992		(5,993)		25,985		N/M		32,998		(88,011)		121,009		N/M
Net interest income after provision for credit losses	268,997		192,756		76,241		40	%	924,323		813,866		110,457		14	%
Noninterest income
Wealth management fees	20,403		22,625		(2,222)		(10)	%	84,122		89,854		(5,732)		(6)	%
Service charges and deposit account fees	13,918		17,039		(3,121)		(18)	%	62,310		64,406		(2,096)		(3)	%
Card-based fees	11,167		11,176		(9)		—	%	44,014		43,014		1,000		2	%
Other fee-based revenue	3,290		4,316		(1,026)		(24)	%	15,903		17,086		(1,183)		(7)	%
Capital markets, net	5,586		9,674		(4,088)		(42)	%	29,917		30,602		(685)		(2)	%
Mortgage banking, net	2,238		8,041		(5,803)		(72)	%	18,873		50,751		(31,878)		(63)	%
Bank and corporate owned life insurance	3,427		4,704		(1,277)		(27)	%	11,431		13,254		(1,823)		(14)	%
Asset gains (losses), net	(545)		985		(1,530)		N/M		1,338		11,009		(9,671)		(88)	%
Investment securities gains (losses), net	(1,930)		—		(1,930)		N/M		3,746		(16)		3,762		N/M
Gains on sale of branches, net(a)	—		—		—		N/M		—		1,038		(1,038)		(100)	%
Other	4,102		2,941		1,161		39	%	10,715		11,366		(651)		(6)	%
Total noninterest income	61,657		81,502		(19,845)		(24)	%	282,370		332,364		(49,994)		(15)	%
Noninterest expense
Personnel	118,381		107,787		10,594		10	%	454,101		426,687		27,414		6	%
Technology	25,299		20,787		4,512		22	%	90,700		81,689		9,011		11	%
Occupancy	15,846		16,863		(1,017)		(6)	%	59,794		63,513		(3,719)		(6)	%
Business development and advertising	8,136		5,627		2,509		45	%	25,525		21,149		4,376		21	%
Equipment	4,791		4,905		(114)		(2)	%	19,632		21,104		(1,472)		(7)	%
Legal and professional	4,132		4,428		(296)		(7)	%	18,250		21,923		(3,673)		(17)	%
Loan and foreclosure costs	804		1,636		(832)		(51)	%	5,925		8,143		(2,218)		(27)	%
FDIC assessment	6,350		4,800		1,550		32	%	22,650		18,150		4,500		25	%
Other intangible amortization	2,203		2,203		—		—	%	8,811		8,844		(33)		—	%

Other	10,618		13,173		(2,555)		(19)	%	41,675		38,721		2,954		8	%
Total noninterest expense	196,560		182,210		14,350		8	%	747,063		709,924		37,139		5	%
Income before income taxes	134,094		92,048		42,046		46	%	459,630		436,307		23,323		5	%
Income tax expense	25,332		15,171		10,161		67	%	93,508		85,313		8,195		10	%
Net income	108,762		76,877		31,885		41	%	366,122		350,994		15,128		4	%
Preferred stock dividends	2,875		2,875		—		—	%	11,500		17,111		(5,611)		(33)	%
Net income available to common equity	$	105,887	$	74,002	$	31,885	43	%	$	354,622	$	333,883	$	20,739	6	%
Earnings per common share
Basic	$	0.70	$	0.49	$	0.21	43	%	$	2.36	$	2.20	$	0.16	7	%
Diluted	$	0.70	$	0.49	$	0.21	43	%	$	2.34	$	2.18	$	0.16	7	%
Average common shares outstanding
Basic	149,454		148,697		757		1	%	149,162		150,773		(1,611)		(1)	%
Diluted	150,886		150,057		829		1	%	150,496		151,987		(1,491)		(1)	%

N/M = Not meaningful

Numbers may not sum due to rounding.

(a) Includes the deposit premium on the sale of branches net of miscellaneous costs to sell.


Associated Banc-Corp Consolidated Statements of Income (Unaudited) - Quarterly Trend
($ in thousands, except per share data)					Seql Qtr										Comp Qtr
	4Q22		3Q22		$ Change		% Change		2Q22		1Q22		4Q21		$ Change		% Change
Interest income
Interest and fees on loans	$	349,403	$	275,666	$	73,737	27	%	$	199,876	$	167,697	$	170,809	$	178,594	105	%
Interest and dividends on investment securities
Taxable	21,435		19,221		2,214		12	%	18,317		16,472		13,317		8,118		61	%
Tax-exempt	16,666		16,538		128		1	%	16,379		16,108		15,569		1,097		7	%
Other interest	3,779		3,284		495		15	%	2,420		1,993		2,031		1,748		86	%
Total interest income	391,283		314,708		76,575		24	%	236,991		202,270		201,726		189,557		94	%
Interest expense
Interest on deposits	60,719		26,000		34,719		134	%	8,019		3,571		3,677		57,042		N/M
Interest on federal funds purchased and securities sold under agreements to repurchase	2,280		756		1,524		N/M		406		38		40		2,240		N/M
Interest on other short-term funding	—		1		(1)		(100)	%	1		1		2		(2)		(100)	%
Interest on FHLB Advances	36,824		20,792		16,032		77	%	9,689		8,182		8,514		28,310		N/M
Interest on long-term funding	2,470		2,722		(252)		(9)	%	2,730		2,730		2,730		(260)		(10)	%
Total interest expense	102,294		50,270		52,024		103	%	20,845		14,522		14,963		87,331		N/M
Net interest income	288,989		264,439		24,550		9	%	216,146		187,747		186,763		102,226		55	%
Provision for credit losses	19,992		16,998		2,994		18	%	(2)		(3,990)		(5,993)		25,985		N/M
Net interest income after provision for credit losses	268,997		247,440		21,557		9	%	216,148		191,737		192,756		76,241		40	%
Noninterest income
Wealth management fees	20,403		19,984		419		2	%	21,332		22,404		22,625		(2,222)		(10)	%
Service charges and deposit account fees	13,918		15,029		(1,111)		(7)	%	16,506		16,856		17,039		(3,121)		(18)	%
Card-based fees	11,167		11,479		(312)		(3)	%	11,442		9,926		11,176		(9)		—	%
Other fee-based revenue	3,290		4,487		(1,197)		(27)	%	4,360		3,766		4,316		(1,026)		(24)	%
Capital markets, net	5,586		7,675		(2,089)		(27)	%	8,010		8,646		9,674		(4,088)		(42)	%
Mortgage banking, net	2,238		2,098		140		7	%	6,145		8,391		8,041		(5,803)		(72)	%
Bank and corporate owned life insurance	3,427		1,827		1,600		88	%	4,106		2,071		4,704		(1,277)		(27)	%

Asset gains (losses), net	(545)		18		(563)		N/M		1,677		188		985		(1,530)		N/M
Investment securities gains (losses), net	(1,930)		5,664		(7,594)		N/M		(8)		21		—		(1,930)		N/M

Other	4,102		2,527		1,575		62	%	1,888		2,198		2,941		1,161		39	%
Total noninterest income	61,657		70,788		(9,131)		(13)	%	75,458		74,467		81,502		(19,845)		(24)	%
Noninterest expense
Personnel	118,381		118,243		138		—	%	112,666		104,811		107,787		10,594		10	%
Technology	25,299		22,694		2,605		11	%	21,223		21,485		20,787		4,512		22	%
Occupancy	15,846		13,717		2,129		16	%	14,151		16,080		16,863		(1,017)		(6)	%
Business development and advertising	8,136		6,778		1,358		20	%	5,655		4,954		5,627		2,509		45	%
Equipment	4,791		4,921		(130)		(3)	%	4,960		4,960		4,905		(114)		(2)	%
Legal and professional	4,132		4,159		(27)		(1)	%	4,873		5,087		4,428		(296)		(7)	%
Loan and foreclosure costs	804		1,631		(827)		(51)	%	1,476		2,014		1,636		(832)		(51)	%
FDIC assessment	6,350		5,800		550		9	%	5,400		5,100		4,800		1,550		32	%
Other intangible amortization	2,203		2,203		—		—	%	2,203		2,203		2,203		—		—	%

Other	10,618		15,645		(5,027)		(32)	%	8,815		6,597		13,173		(2,555)		(19)	%
Total noninterest expense	196,560		195,791		769		—	%	181,420		173,292		182,210		14,350		8	%
Income before income taxes	134,094		122,438		11,656		10	%	110,187		92,912		92,048		42,046		46	%
Income tax expense	25,332		26,163		(831)		(3)	%	23,363		18,650		15,171		10,161		67	%
Net income	108,762		96,275		12,487		13	%	86,824		74,262		76,877		31,885		41	%
Preferred stock dividends	2,875		2,875		—		—	%	2,875		2,875		2,875		—		—	%
Net income available to common equity	$	105,887	$	93,400	$	12,487	13	%	$	83,949	$	71,387	$	74,002	$	31,885	43	%
Earnings per common share
Basic	$	0.70	$	0.62	$	0.08	13	%	$	0.56	$	0.48	$	0.49	$	0.21	43	%
Diluted	$	0.70	$	0.62	$	0.08	13	%	$	0.56	$	0.47	$	0.49	$	0.21	43	%
Average common shares outstanding
Basic	149,454		149,321		133		—	%	149,083		148,781		148,697		757		1	%
Diluted	150,886		150,262		624		—	%	150,203		150,492		150,057		829		1	%

N/M = Not meaningful

Numbers may not sum due to rounding.


Associated Banc-Corp Selected Quarterly Information
($ in millions except per share data; shares repurchased and outstanding in thousands)	YTD Dec 2022			YTD Dec 2021			4Q22			3Q22			2Q22			1Q22			4Q21
Per common share data
Dividends	$	0.81		$	0.76		$	0.21		$	0.20		$	0.20		$	0.20		$	0.20
Market value:
High	25.71			23.92			25.13			21.87			22.48			25.71			23.92
Low	17.63			17.20			20.54			17.63			18.01			22.41			21.49
Close							23.09			20.08			18.26			22.76			22.59
Book value / share							25.40			25.01			25.09			25.03			25.66
Tangible book value / share							17.73			17.32			17.37			17.29			17.87
Performance ratios (annualized)
Return on average assets	1.00		%	1.02		%	1.12		%	1.02		%	0.97		%	0.86		%	0.87		%
Noninterest expense / average assets	2.04		%	2.06		%	2.03		%	2.08		%	2.04		%	2.00		%	2.06		%
Effective tax rate	20.34		%	19.55		%	18.89		%	21.37		%	21.20		%	20.07		%	16.48		%
Dividend payout ratio(a)	34.32		%	34.55		%	30.00		%	32.26		%	35.71		%	41.67		%	40.82		%
Net interest margin	2.91		%	2.39		%	3.31		%	3.13		%	2.71		%	2.42		%	2.40		%
Selected trend information
Average full time equivalent employees(b)	4,118			4,003			4,169			4,182			4,101			4,018			3,992
Branch count							202			215			215			215			215
Assets under management, at market value(c)							$	11,843		$	11,142		$	11,561		$	12,937		$	13,679
Mortgage loans originated for sale during period	$	600		$	1,750		$	64		$	132		$	152		$	252		$	404
Mortgage loan settlements during period	$	715		$	1,775		$	95		$	120		$	204		$	296		$	427

Mortgage portfolio serviced for others							$	6,712		$	6,800		$	6,910		$	6,972		$	6,995
Mortgage servicing rights, net / mortgage portfolio serviced for others(d)							1.15		%	1.15		%	1.11		%	0.96		%	0.78		%
Shares repurchased during period(e)	—			6,295			—			—			—			—			1,096
Shares outstanding, end of period							150,444			150,328			150,126			150,038			149,343





















Selected quarterly ratios
Loans / deposits							97.18		%	95.27		%	92.71		%	86.36		%	85.10		%
Stockholders’ equity / assets							10.19		%	10.39		%	10.63		%	11.30		%	11.47		%
Risk-based capital(f)(g)
Total risk-weighted assets							$	32,472		$	31,406		$	29,864		$	27,781		$	27,243
Common equity Tier 1							$	3,036		$	2,956		$	2,897		$	2,838		$	2,808
Common equity Tier 1 capital ratio							9.35		%	9.41		%	9.70		%	10.22		%	10.31		%
Tier 1 capital ratio							9.95		%	10.03		%	10.35		%	10.91		%	11.02		%
Total capital ratio							11.33		%	11.41		%	11.74		%	12.41		%	13.10		%
Tier 1 leverage ratio							8.59		%	8.66		%	8.87		%	8.86		%	8.83		%





Mortgage banking, net
Mortgage servicing fees, net(h)	$	8		$	—		$	2		$	2		$	2		$	2		$	1
Gains (losses) and fair value adjustments on loans held for sale	1			35			—			1			—			1			3


Changes in mortgage servicing rights valuation, net of economic hedge(d)	10			16			—			(1)			5			6			4
Mortgage banking, net	$	19		$	51		$	2		$	2		$	6		$	8		$	8

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)On January 1, 2022, the Corporation made the irrevocable election to account for mortgage servicing rights at fair value. For all prior periods, mortgage servicing rights were carried at lower of cost or market.

(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)December 31, 2022 data is estimated.

(h)Includes mortgage origination and servicing fees, net of mortgage servicing rights amortization/decay.


Associated Banc-Corp Selected Asset Quality Information
($ in thousands)	Dec 31, 2022			Sep 30, 2022			Seql Qtr % Change		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Comp Qtr % Change
Allowance for loan losses
Balance at beginning of period	$	292,904		$	280,771		4	%	$	279,058		$	280,015		$	290,997		1	%
Provision for loan losses	21,000			14,000			50	%	2,000			(3,000)			(4,500)			N/M
Charge offs	(2,982)			(3,346)			(11)	%	(1,791)			(2,028)			(8,869)			(66)	%
Recoveries	1,798			1,478			22	%	1,504			4,072			2,387			(25)	%
Net (charge offs) recoveries	(1,183)			(1,867)			(37)	%	(287)			2,044			(6,482)			(82)	%
Balance at end of period	$	312,720		$	292,904		7	%	$	280,771		$	279,058		$	280,015		12	%
Allowance for unfunded commitments
Balance at beginning of period	$	39,776		$	36,776		8	%	$	38,776		$	39,776		$	41,276		(4)	%
Provision for unfunded commitments	(1,000)			3,000			N/M		(2,000)			(1,000)			(1,500)			(33)	%
Balance at end of period	$	38,776		$	39,776		(3)	%	$	36,776		$	38,776		$	39,776		(3)	%
Allowance for credit losses on loans (ACLL)	$	351,496		$	332,680		6	%	$	317,547		$	317,835		$	319,791		10	%
Provision for credit losses on loans	$	20,000		$	17,000		18	%	$	—		$	(4,000)		$	(6,000)		N/M
($ in thousands)	Dec 31, 2022			Sep 30, 2022			Seql Qtr % Change		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Comp Qtr % Change
Net (charge offs) recoveries

Asset-based lending & equipment finance(a)	$	—		$	—		N/M		$	—		$	—		$	27		(100)	%
Commercial and industrial	278			(897)			N/M		(444)			1,854			(6,669)			N/M
Commercial real estate—owner occupied	3			3			—	%	4			3			4			(25)	%
Commercial and business lending	281			(894)			N/M		(440)			1,857			(6,638)			N/M
Commercial real estate—investor	—			—			N/M		—			—			109			(100)	%
Real estate construction	16			9			78	%	2			32			52			(69)	%
Commercial real estate lending	16			9			78	%	2			32			162			(90)	%
Total commercial	297			(885)			N/M		(439)			1,889			(6,476)			N/M
Residential mortgage	(125)			(42)			198	%	220			288			(6)			N/M
Auto finance	(768)			(165)			N/M		(14)			4			(11)			N/M
Home equity	123			(101)			N/M		461			315			546			(77)	%
Other consumer	(711)			(675)			5	%	(516)			(451)			(534)			33	%
Total consumer	(1,480)			(983)			51	%	151			155			(6)			N/M
Total net (charge offs) recoveries	$	(1,183)		$	(1,867)		(37)	%	$	(287)		$	2,044		$	(6,482)		(82)	%

(In basis points)	Dec 31, 2022			Sep 30, 2022					Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Net (charge offs) recoveries to average loans (annualized)

Asset-based lending & equipment finance(a)	—			—					—			—			9
Commercial and industrial	1			(4)					(2)			10			(33)
Commercial real estate—owner occupied	—			—					—			—			—
Commercial and business lending	1			(3)					(2)			8			(29)
Commercial real estate—investor	—			—					—			—			1
Real estate construction	—			—					—			1			1
Commercial real estate lending	—			—					—			—			1
Total commercial	1			(2)					(1)			5			(17)
Residential mortgage	(1)			—					1			2			—
Auto finance	(24)			(7)					(1)			1			(9)
Home equity	8			(7)					32			22			36
Other consumer	(95)			(89)					(70)			(62)			(71)
Total consumer	(6)			(4)					1			1			—
Total net (charge offs) recoveries	(2)			(3)					—			3			(11)

($ in thousands)	Dec 31, 2022			Sep 30, 2022			Seql Qtr % Change		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Comp Qtr % Change
Credit Quality
Nonaccrual loans	$	111,467		$	116,406		(4)	%	$	108,345		$	143,221		$	130,443		(15)	%
Other real estate owned (OREO)	14,784			16,373			(10)	%	17,879			18,194			29,619			(50)	%

Repossessed Assets	$	215		$	299		(28)	%	$	102		$	—		$	—		N/M
Total nonperforming assets	$	126,466		$	133,078		(5)	%	$	126,327		$	161,414		$	160,062		(21)	%

Loans 90 or more days past due and still accruing	$	1,728		$	1,417		22	%	$	1,555		$	1,595		$	1,263		37	%

Allowance for credit losses on loans to total loans	1.22		%	1.20		%			1.20		%	1.30		%	1.32		%

Allowance for credit losses on loans to nonaccrual loans	315.34		%	285.79		%			293.09		%	221.92		%	245.16		%
Nonaccrual loans to total loans	0.39		%	0.42		%			0.41		%	0.58		%	0.54		%
Nonperforming assets to total loans plus OREO and repossessed assets	0.44		%	0.48		%			0.48		%	0.66		%	0.66		%
Nonperforming assets to total assets	0.32		%	0.35		%			0.34		%	0.46		%	0.46		%
Annualized year-to-date net charge offs (recoveries) to year-to-date average loans	—		%	—		%			(0.01)		%	(0.03)		%	0.10		%

N/M = Not meaningful


Associated Banc-Corp Selected Asset Quality Information (continued)
(In thousands)	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Nonaccrual loans
Commercial and industrial	$	14,329	$	15,576	(8)	%	$	843	$	266	$	6,279	128	%

Commercial and business lending	14,329		15,576		(8)	%	843		266		6,279		128	%
Commercial real estate—investor	29,380		37,479		(22)	%	46,823		80,886		60,677		(52)	%
Real estate construction	105		141		(26)	%	604		609		177		(41)	%
Commercial real estate lending	29,485		37,620		(22)	%	47,427		81,495		60,855		(52)	%
Total commercial	43,814		53,196		(18)	%	48,270		81,761		67,134		(35)	%
Residential mortgage	58,480		55,485		5	%	52,840		53,827		55,362		6	%
Auto finance	1,490		302		N/M		53		49		52		N/M
Home equity	7,487		7,325		2	%	7,100		7,490		7,726		(3)	%
Other consumer	197		98		101	%	83		95		170		16	%
Total consumer	67,654		63,210		7	%	60,075		61,460		63,309		7	%
Total nonaccrual loans	$	111,467	$	116,406	(4)	%	$	108,345	$	143,221	$	130,443	(15)	%

	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Restructured loans (accruing)
Commercial and industrial	$	12,453	$	14,829	(16)	%	$	13,882	$	7,426	$	8,687	43	%
Commercial real estate—owner occupied	316		369		(14)	%	421		473		967		(67)	%
Commercial and business lending	12,769		15,198		(16)	%	14,303		7,899		9,655		32	%
Commercial real estate—investor	128		733		(83)	%	943		2,045		12,866		(99)	%
Real estate construction	195		165		18	%	179		183		242		(19)	%
Commercial real estate lending	324		898		(64)	%	1,122		2,228		13,108		(98)	%
Total commercial	13,093		16,097		(19)	%	15,425		10,127		22,763		(42)	%
Residential mortgage	16,829		16,169		4	%	15,829		16,644		16,316		3	%

Home equity	2,148		2,103		2	%	2,246		2,486		2,648		(19)	%
Other consumer	798		764		4	%	753		747		803		(1)	%
Total consumer	19,775		19,036		4	%	18,828		19,876		19,768		—	%
Total restructured loans (accruing)	$	32,868	$	35,132	(6)	%	$	34,253	$	30,003	$	42,530	(23)	%
Nonaccrual restructured loans (included in nonaccrual loans)	$	20,127	$	21,650	(7)	%	$	22,172	$	19,352	$	17,426	15	%
	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Accruing Loans 30-89 Days Past Due
Commercial and industrial	$	6,283	$	1,861	N/M		$	1,642	$	1,086	$	715	N/M
Commercial real estate—owner occupied	230		—		N/M		—		198		163		41	%
Commercial and business lending	6,512		1,861		N/M		1,642		1,284		878		N/M
Commercial real estate—investor	1,067		—		N/M		5,484		—		616		73	%
Real estate construction	39		43		(9)	%	—		—		1,620		(98)	%
Commercial real estate lending	1,105		43		N/M		5,484		—		2,236		(51)	%
Total commercial	7,618		1,904		N/M		7,126		1,284		3,114		145	%
Residential mortgage	9,874		6,517		52	%	5,315		4,957		6,169		60	%
Auto finance	9,408		6,206		52	%	2,906		949		11		N/M
Home equity	5,607		4,234		32	%	2,961		4,207		3,711		51	%
Other consumer	1,610		1,592		1	%	1,365		1,232		2,307		(30)	%
Total consumer	26,499		18,549		43	%	12,547		11,345		12,198		117	%
Total accruing loans 30-89 days past due	$	34,117	$	20,452	67	%	$	19,673	$	12,629	$	15,312	123	%

	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Potential Problem Loans
Asset-based lending & equipment finance(a)	$	17,698	$	19,266	(8)	%	$	19,813	$	19,057	$	17,697	—	%
Commercial and industrial	118,851		89,290		33	%	84,832		93,450		122,562		(3)	%
Commercial real estate—owner occupied	34,422		28,287		22	%	38,628		24,005		26,723		29	%
Commercial and business lending	170,971		136,843		25	%	143,273		136,513		166,981		2	%
Commercial real estate—investor	92,535		117,982		(22)	%	132,635		130,792		106,138		(13)	%
Real estate construction	970		—		N/M		82		200		21,408		(95)	%
Commercial real estate lending	93,505		117,982		(21)	%	132,717		130,992		127,546		(27)	%
Total commercial	264,476		254,825		4	%	275,990		267,505		294,527		(10)	%
Residential mortgage	1,978		2,845		(30)	%	3,297		3,032		2,214		(11)	%

Home equity	197		185		6	%	188		156		165		19	%

Total consumer	2,175		3,030		(28)	%	3,486		3,188		2,379		(9)	%
Total potential problem loans	$	266,651	$	257,855	3	%	$	279,475	$	270,693	$	296,905	(10)	%

N/M = Not meaningful

Numbers may not sum due to rounding.

(a) Periods prior to Mar 31, 2022 do not include equipment finance.


Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Sequential and Comparable Quarter
	Three Months Ended
	December 31, 2022						September 30, 2022						December 31, 2021
($ 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)

Asset-based lending (ABL) & equipment finance (d)	$	421,540	$	5,901	5.56	%	$	317,857	$	4,027	5.03	%	$	125,507	$	971	3.07	%
Commercial and business lending (excl ABL and equipment finance)	10,108,444		141,283		5.55	%	9,874,606		106,188		4.27	%	8,830,871		58,456		2.57	%
Commercial real estate lending	7,062,405		105,479		5.93	%	6,768,054		78,887		4.62	%	6,134,049		45,040		2.91	%
Total commercial	17,592,389		252,663		5.70	%	16,960,517		189,101		4.42	%	15,090,427		104,468		2.75	%
Residential mortgage	8,443,661		68,069		3.22	%	8,223,531		64,069		3.12	%	7,751,337		54,952		2.84	%
Auto finance	1,244,436		12,911		4.12	%	969,918		9,170		3.75	%	53,120		587		4.39	%
Other retail	914,848		16,366		7.13	%	901,738		13,868		6.13	%	900,369		11,188		4.95	%
Total loans	28,195,334		350,009		4.93	%	27,055,703		276,209		4.06	%	23,795,253		171,195		2.86	%
Investment securities
Taxable	4,336,132		21,435		1.98	%	4,328,586		19,221		1.78	%	4,053,781		13,317		1.31	%
Tax-exempt(a)	2,428,751		21,000		3.46	%	2,435,957		20,838		3.42	%	2,257,106		19,617		3.48	%
Other short-term investments	408,091		3,779		3.68	%	378,528		3,284		3.45	%	1,592,840		2,031		0.51	%
Investments and other	7,172,975		46,213		2.57	%	7,143,071		43,342		2.42	%	7,903,726		34,965		1.77	%
Total earning assets	35,368,309		$	396,222	4.46	%	34,198,774		$	319,551	3.72	%	31,698,979		$	206,160	2.59	%
Other assets, net	3,017,127						3,073,005						3,317,180
Total assets	$	38,385,436					$	37,271,779					$	35,016,159
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings	$	4,660,696	$	3,607	0.31	%	$	4,735,285	$	516	0.04	%	$	4,367,233	$	369	0.03	%
Interest-bearing demand	6,831,213		20,861		1.21	%	6,587,404		10,306		0.62	%	6,506,438		1,015		0.06	%
Money market	7,382,793		23,728		1.28	%	7,328,165		9,474		0.51	%	6,892,803		927		0.05	%
Network transaction deposits	901,168		8,261		3.64	%	873,168		4,716		2.14	%	838,255		239		0.11	%
Time deposits	1,463,204		4,262		1.16	%	1,230,859		989		0.32	%	1,381,092		1,127		0.32	%
Total interest-bearing deposits	21,239,073		60,719		1.13	%	20,754,882		26,000		0.50	%	19,985,821		3,677		0.07	%
Federal funds purchased and securities sold under agreements to repurchase	424,352		2,280		2.13	%	380,674		756		0.79	%	293,948		40		0.05	%
Commercial Paper	12,927		—		0.01	%	18,308		1		0.01	%	44,250		2		0.01	%



FHLB advances	3,790,101		36,824		3.85	%	3,283,328		20,792		2.51	%	1,621,097		8,514		2.08	%
Long-term funding	248,645		2,470		3.97	%	249,838		2,722		4.36	%	249,223		2,730		4.38	%
Total short and long-term funding	4,476,025		41,575		3.69	%	3,932,149		24,270		2.45	%	2,208,518		11,286		2.03	%
Total interest-bearing liabilities	25,715,098		$	102,294	1.58	%	24,687,031		$	50,270	0.81	%	22,194,339		$	14,963	0.27	%
Noninterest-bearing demand deposits	8,088,435						8,119,475						8,416,525
Other liabilities	590,223						480,672						401,433
Stockholders’ equity	3,991,679						3,984,602						4,003,863
Total liabilities and stockholders’ equity	$	38,385,436					$	37,271,779					$	35,016,159
Interest rate spread					2.88	%					2.91	%					2.32	%
Net free funds					0.43	%					0.22	%					0.08	%
Fully tax-equivalent net interest income and net interest margin ("NIM")			$	293,929	3.31	%			$	269,281	3.13	%			$	191,197	2.40	%
Fully tax-equivalent adjustment			4,939						4,843						4,434
Net interest income			$	288,989					$	264,439					$	186,763

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)Periods prior to March 31, 2022 do not include equipment finance.


Associated Banc-Corp Net Interest Income Analysis - Fully Tax-Equivalent Basis - Year Over Year
	Year Ended December 31,
	2022						2021
($ 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)

Asset-based lending (ABL) & equipment finance (d)	$	297,308	$	13,559	4.56	%	$	120,903	$	3,704	3.06	%
Commercial and business lending (excl ABL and equipment finance)	9,554,995		370,597		3.88	%	8,983,580		246,381		2.73	%
Commercial real estate lending	6,595,635		281,485		4.27	%	6,156,214		178,354		2.90	%
Total commercial	16,447,938		665,640		4.05	%	15,260,697		428,439		2.81	%
Residential mortgage	8,052,277		245,975		3.05	%	7,847,564		221,099		2.82	%
Auto finance	805,179		30,749		3.82	%	19,815		871		4.39	%
Other retail	894,948		52,266		5.84	%	929,905		44,852		4.82	%
Total loans	26,200,341		994,630		3.80	%	24,057,980		695,260		2.89	%
Investment securities
Taxable	4,362,394		75,444		1.73	%	3,369,612		37,916		1.13	%
Tax-exempt (a)	2,419,262		82,771		3.42	%	2,036,030		73,975		3.63	%
Other short-term investments	570,887		11,475		2.01	%	1,644,995		7,833		0.48	%
Investments and other	7,352,542		169,690		2.31	%	7,050,637		119,724		1.70	%
Total earning assets	33,552,884		$	1,164,320	3.47	%	31,108,616		$	814,984	2.62	%
Other assets, net	3,105,049						3,355,640
Total assets	$	36,657,932					$	34,464,257
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest-bearing deposits
Savings	$	4,652,774	$	5,033	0.11	%	$	4,138,732	$	1,435	0.03	%
Interest-bearing demand	6,638,592		35,169		0.53	%	6,113,660		4,610		0.08	%
Money market	7,164,518		36,370		0.51	%	6,940,513		4,028		0.06	%
Network transaction deposits	821,804		14,721		1.79	%	929,544		1,120		0.12	%
Time deposits	1,315,793		7,016		0.53	%	1,495,060		7,429		0.50	%
Total interest-bearing deposits	20,593,482		98,309		0.48	%	19,617,508		18,622		0.09	%
Federal funds purchased and securities sold under agreements to repurchase	388,701		3,480		0.90	%	207,132		143		0.07	%
Commercial Paper	20,540		2		0.01	%	49,546		22		0.04	%


FHLB advances	2,784,403		75,487		2.71	%	1,623,508		36,493		2.25	%
Long-term funding	249,478		10,653		4.27	%	407,912		17,053		4.18	%
Total short and long-term funding	3,443,123		89,621		2.60	%	2,288,098		53,712		2.35	%
Total interest-bearing liabilities	24,036,605		$	187,931	0.78	%	21,905,605		$	72,334	0.33	%
Noninterest-bearing demand deposits	8,163,703						8,075,906
Other liabilities	482,538						403,296
Stockholders’ equity	3,975,086						4,079,449
Total liabilities and stockholders’ equity	$	36,657,932					$	34,464,257
Interest rate spread					2.69	%					2.29	%
Net free funds					0.22	%					0.10	%
Fully tax-equivalent net interest income and net interest margin ("NIM")			$	976,389	2.91	%			$	742,650	2.39	%
Fully tax-equivalent adjustment			19,068						16,796
Net interest income			$	957,321					$	725,855

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)Periods prior to March 31, 2022 do not include equipment finance.


Associated Banc-Corp Loan and Deposit Composition
($ in thousands)
Period end loan composition	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Asset-based lending & equipment finance(a)	$	458,887	$	380,830	20	%	$	263,044	$	231,040	$	178,027	158	%
Commercial and industrial	9,300,567		9,191,094		1	%	8,993,640		8,120,375		8,274,358		12	%
Commercial real estate—owner occupied	991,722		999,786		(1)	%	928,152		973,572		971,326		2	%
Commercial and business lending	10,751,176		10,571,711		2	%	10,184,836		9,324,986		9,423,711		14	%
Commercial real estate—investor	5,080,344		5,064,289		—	%	4,790,241		4,469,241		4,384,569		16	%
Real estate construction	2,155,222		1,835,159		17	%	1,775,648		1,760,076		1,808,976		19	%
Commercial real estate lending	7,235,565		6,899,449		5	%	6,565,889		6,229,317		6,193,545		17	%
Total commercial	17,986,742		17,471,159		3	%	16,750,726		15,554,303		15,617,256		15	%
Residential mortgage	8,511,550		8,314,902		2	%	8,002,943		7,609,343		7,567,310		12	%
Auto finance	1,382,073		1,117,136		24	%	847,969		497,523		143,045		N/M


Home equity	624,353		612,608		2	%	592,843		580,867		595,615		5	%
Other consumer	294,851		301,475		(2)	%	300,217		289,889		301,723		(2)	%
Total consumer	10,812,828		10,346,121		5	%	9,743,972		8,977,622		8,607,693		26	%
Total loans	$	28,799,569	$	27,817,280	4	%	$	26,494,698	$	24,531,926	$	24,224,949	19	%


Period end deposit and customer funding composition	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Noninterest-bearing demand	$	7,760,811	$	8,224,579	(6)	%	$	8,085,702	$	8,315,699	$	8,504,077	(9)	%
Savings	4,604,848		4,708,720		(2)	%	4,708,156		4,661,232		4,410,198		4	%
Interest-bearing demand	7,100,727		7,122,218		—	%	6,789,722		6,616,767		7,019,782		1	%
Money market	8,239,610		7,909,232		4	%	7,769,415		7,522,797		7,185,111		15	%
Brokered CDs	541,916		—		N/M		2,121		—		—		N/M
Other time deposits	1,388,242		1,233,833		13	%	1,221,460		1,288,913		1,347,262		3	%
Total deposits	29,636,154		29,198,581		1	%	28,576,577		28,405,409		28,466,430		4	%
Other customer funding(b)	261,767		283,856		(8)	%	296,440		299,301		354,142		(26)	%
Total deposits and other customer funding	$	29,897,921	$	29,482,437	1	%	$	28,873,017	$	28,704,710	$	28,820,572	4	%
Network transaction deposits(c)	$	979,003	$	864,086	13	%	$	891,902	$	762,680	$	766,965	28	%


Net deposits and other customer funding(d)	$	28,377,001	$	28,618,351	(1)	%	$	27,978,993	$	27,942,029	$	28,053,607	1	%

Quarter average loan composition	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Asset-based lending & equipment finance(a)	$	421,540	$	317,857	33	%	$	244,369	$	202,836	$	125,507	N/M
Commercial and industrial	9,106,639		8,904,113		2	%	8,407,441		7,885,953		7,931,335		15	%
Commercial real estate—owner occupied	1,001,805		970,493		3	%	952,802		973,496		899,536		11	%
Commercial and business lending	10,529,984		10,192,463		3	%	9,604,612		9,062,286		8,956,378		18	%
Commercial real estate—investor	5,048,419		4,891,530		3	%	4,570,300		4,439,051		4,304,579		17	%
Real estate construction	2,013,986		1,876,524		7	%	1,793,095		1,738,011		1,829,470		10	%
Commercial real estate lending	7,062,405		6,768,054		4	%	6,363,395		6,177,062		6,134,049		15	%
Total commercial	17,592,389		16,960,517		4	%	15,968,007		15,239,348		15,090,427		17	%
Residential mortgage	8,443,661		8,223,531		3	%	7,860,220		7,671,329		7,751,337		9	%
Auto finance	1,244,436		969,918		28	%	689,027		305,202		53,120		N/M


Home equity	619,044		601,821		3	%	586,072		588,281		600,963		3	%
Other consumer	295,804		299,917		(1)	%	294,837		293,578		299,406		(1)	%
Total consumer	10,602,945		10,095,186		5	%	9,430,156		8,858,390		8,704,826		22	%
Total loans(e)	$	28,195,334	$	27,055,703	4	%	$	25,398,163	$	24,097,738	$	23,795,253	18	%

Quarter average deposit composition	Dec 31, 2022		Sep 30, 2022		Seql Qtr % Change		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Comp Qtr % Change
Noninterest-bearing demand	$	8,088,435	$	8,119,475	—	%	$	8,133,492	$	8,316,399	$	8,416,525	(4)	%
Savings	4,660,696		4,735,285		(2)	%	4,682,783		4,529,991		4,367,233		7	%
Interest-bearing demand	6,831,213		6,587,404		4	%	6,413,077		6,722,038		6,506,438		5	%
Money market	7,382,793		7,328,165		1	%	6,910,505		7,030,945		6,892,803		7	%
Network transaction deposits	901,168		873,168		3	%	775,593		734,895		838,255		8	%
Brokered CDs	190,406		734		N/M		978		—		—		N/M
Other time deposits	1,272,797		1,230,126		3	%	1,254,314		1,313,101		1,381,092		(8)	%
Total deposits	$	29,327,509	$	28,874,357	2	%	$	28,170,742	$	28,647,369	$	28,402,345	3	%
Other customer funding(b)	$	306,122	$	326,324	(6)	%	$	315,639	$	319,982	$	337,916	(9)	%
Total deposits and other customer funding	$	29,633,631	$	29,200,680	1	%	$	28,486,381	$	28,967,352	$	28,740,261	3	%
Net deposits and other customer funding(d)	$	28,542,056	$	28,326,779	1	%	$	27,709,810	$	28,232,457	$	27,902,006	2	%

N/M = Not meaningful

Numbers may not sum due to rounding.

(a) Periods prior to Mar 31, 2022 do not include equipment finance.

(b) Includes repurchase agreements and commercial paper.

(d) Total deposits and other customer funding, excluding brokered CDs and network transaction deposits

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


Associated Banc-Corp Non-GAAP Financial Measures Reconciliation	YTD			YTD
($ in millions, except per share data)	Dec 2022			Dec 2021			4Q22			3Q22			2Q22			1Q22			4Q21
Selected equity and performance ratios(a)(b)(c)
Tangible common equity / tangible assets							6.97		%	7.06		%	7.23		%	7.68		%	7.86		%
Return on average equity	9.21		%	8.60		%	10.81		%	9.59		%	8.85		%	7.55		%	7.62		%
Return on average tangible common equity	13.77		%	12.99		%	16.15		%	14.32		%	13.29		%	11.26		%	11.34		%
Return on average common equity Tier 1	12.23		%	12.08		%	14.04		%	12.69		%	11.77		%	10.27		%	10.50		%
Return on average tangible assets	1.05		%	1.07		%	1.18		%	1.08		%	1.03		%	0.90		%	0.92		%
Average stockholders' equity / average assets	10.84		%	11.84		%	10.40		%	10.69		%	11.02		%	11.33		%	11.43		%
Tangible common equity reconciliation(a)
Common equity							$	3,821		$	3,760		$	3,766		$	3,755		$	3,832
Goodwill and other intangible assets, net							(1,154)			(1,156)			(1,159)			(1,161)			(1,163)
Tangible common equity							$	2,667		$	2,603		$	2,608		$	2,594		$	2,669


Tangible assets reconciliation(a)
Total assets							$	39,406		$	38,050		$	37,236		$	34,956		$	35,104
Goodwill and other intangible assets, net							(1,154)			(1,156)			(1,159)			(1,161)			(1,163)
Tangible assets							$	38,251		$	36,893		$	36,077		$	33,795		$	33,941
Average tangible common equity and average common equity tier 1 reconciliation(a)
Common equity	$	3,782		$	3,789		$	3,798		$	3,791		$	3,744		$	3,794		$	3,811
Goodwill and other intangible assets, net	(1,159)			(1,169)			(1,155)			(1,158)			(1,160)			(1,162)			(1,164)
Tangible common equity	2,623			2,621			2,642			2,634			2,584			2,631			2,646
Modified CECL transitional amount	67			102			67			67			67			67			91
Accumulated other comprehensive loss	174			1			254			190			170			80			19
Deferred tax assets, net	34			40			29			30			39			39			40
Average common equity tier 1	$	2,899		$	2,764		$	2,993		$	2,921		$	2,860		$	2,818		$	2,795
Average tangible assets reconciliation(a)
Total assets	$	36,658		$	34,464		$	38,385		$	37,272		$	35,733		$	35,200		$	35,016
Goodwill and other intangible assets, net	(1,159)			(1,169)			(1,155)			(1,158)			(1,160)			(1,162)			(1,164)
Tangible assets	$	35,499		$	33,296		$	37,230		$	36,114		$	34,573		$	34,038		$	33,852
Adjusted net income reconciliation(b)
Net income	$	366		$	351		$	109		$	96		$	87		$	74		$	77
Other intangible amortization, net of tax	7			7			2			2			2			2			2
Adjusted net income	$	373		$	358		$	110		$	98		$	88		$	76		$	79
Adjusted net income available to common equity reconciliation(b)
Net income available to common equity	$	355		$	334		$	106		$	93		$	84		$	71		$	74
Other intangible amortization, net of tax	7			7			2			2			2			2			2
Adjusted net income available to common equity	$	361		$	341		$	108		$	95		$	86		$	73		$	76
Selected trend information(d)
Wealth management fees	$	84		$	90		$	20		$	20		$	21		$	22		$	23
Service charges and deposit account fees	62			64			14			15			17			17			17
Card-based fees	44			43			11			11			11			10			11
Other fee-based revenue	16			17			3			4			4			4			4
Fee-based revenue	206			214			49			51			54			53			55
Other	76			118			13			20			22			22			26
Total noninterest income	$	282		$	332		$	62		$	71		$	75		$	74		$	82
Pre-tax pre-provision income(e)
Income before income taxes	$	460		$	436		$	134		$	122		$	110		$	93		$	92
Provision for credit losses	33			(88)			20			17			—			(4)			(6)
Pre-tax pre-provision income	$	493		$	348		$	154		$	139		$	110		$	89		$	86






Efficiency ratio reconciliation(f)
Federal Reserve efficiency ratio	60.36		%	66.33		%	55.47		%	60.32		%	61.53		%	65.71		%	67.36		%
Fully tax-equivalent adjustment	(0.92)		%	(1.04)		%	(0.77)		%	(0.87)		%	(0.98)		%	(1.13)		%	(1.10)		%
Other intangible amortization	(0.71)		%	(0.84)		%	(0.62)		%	(0.67)		%	(0.76)		%	(0.84)		%	(0.82)		%
Fully tax-equivalent efficiency ratio	58.74		%	64.47		%	54.08		%	58.79		%	59.80		%	63.76		%	65.46		%
Provision for unfunded commitments adjustment	0.08		%	0.74		%	0.28		%	(0.90)		%	0.67		%	0.37		%	0.55		%
Asset gains (losses), net adjustment	0.06		%	0.67		%	(0.08)		%	—		%	0.34		%	0.05		%	0.24		%
Acquisitions, branch sales, and initiatives	(0.14)		%	(0.53)		%	—		%	(0.53)		%	—		%	—		%	(1.43)		%
Adjusted efficiency ratio	58.75		%	65.36		%	54.28		%	57.36		%	60.82		%	64.18		%	64.82		%

Numbers may not sum due to rounding.

(a)Tangible common equity and tangible assets exclude goodwill and other intangible assets, net.

(b)Adjusted net income and adjusted net income available to common equity, which are used in the calculation of return on average tangible assets and return on average tangible common equity, respectively, add back other intangible amortization, net of tax.

(c)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.

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

(e)Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings and provide greater understanding of ongoing operations and enhanced comparability of results with prior periods.

(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 announced initiatives, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains (losses), net, asset gains (losses), net, and gain on sale of branches, 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, asset gains (losses), net, branch sales, and announced initiatives.