Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (September 2013)
26 slides from Associated Banc-corp's investor presentation, Sep 6, 2013
Slide 1: Associated Banc-Corp Investor Presentation Third Quarter 2013
Exhibit 99.1 ASSOCIATED BANC-CORP INVESTOR PRESENTATION THIRD QUARTER 2013
Slide 2: Forward-Looking Statements
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
Slide 3: Our Footprint and Franchise
OUR FOOTPRINT AND FRANCHISE About Associated • Top 50, publicly traded, U.S. bank holding company • $24 billion in assets; largest bank headquartered in Wisconsin • 239 branches serving approximately one million customers ASBC Deposits¹ ($ ASBC in billions) Branches¹ WI $11.5 170 IL $4.0 44 MN $1.6
Slide 4: Attractive Midwest Markets
ATTRACTIVE MIDWEST MARKETS 1 • Population: Over 60 mm people live in our footprint (~ 20% of USA) . • GDP Metrics: $2.9 trillion in 2012 (18.4% of US GDP). 4% growth from 2 2011 is consistent with the national average. • Employment Data: Five states in our footprint have lower unemployment rates tha
Slide 5: Associated at Its Core
ASSOCIATED AT ITS CORE Community Big bank bank values, products, flexibility, strength, decision- lending limits, making, efficiency, attention to innovation, relationships depth of and service expertise 4
Slide 6: Second Quarter Highlights and Outlook
SECOND QUARTER HIGHLIGHTS AND OUTLOOK Second Quarter 2013 Highlights: Outlook – Growing the • Net income of $47 mm Franchise & Creating Long- Term Shareholder Value • Average loans of $15.7 bn, up 2% QoQ • Continued focus on organic • Net interest income of $160 growth opportunities mm, up 2% QoQ •
Slide 7: Reshaping & Rebuilding the Loan Portfolio
RESHAPING & REBUILDING THE LOAN 1 PORTFOLIO $16.3 Installment $15.7 5% $15.1 3% • Portfolio peaked at $14.6 3% 7% $16.3 b in 4Q 2008 Home Equity 13% 6% $14.0 4% 8% 5% • Goal: A balanced 13% $12.6 4% portfolio between Construction 14% 10% 6% Commercial & Business, 4% 19% 11% 19% Commercial Real 13% E
Slide 8: Loan Portfolio Growth and Composition
LOAN PORTFOLIO GROWTH AND COMPOSITION Average Loans of $15.7 billion for Second Quarter 2013 Average Quarterly Loans ($ in billions) 2Q 2013 Average Net Loan Growth of $280 million ($ balances in millions) Peak Loans (4Q 2008) $16.3 billion +2% QoQ Commercial Real Estate Power & Utilities General Co
Slide 9: Branch Strategy
BRANCH STRATEGY Rationalize Footprint Reinvigorate Model • Consolidated 24% of • Leverage technology solutions for service. branches since 2007. Lower Cost Branch Concepts Financial Outlet Deposit Automation ATM Transaction Express Video Teller Refine Footprint Retain Relationships • Footprint Proje
Slide 10: Enhancing Mobile Banking Offerings
ENHANCING MOBILE BANKING OFFERINGS • New iPad App (Sept 2013) New Features: • Associated SnapDeposit™ (Picture of Checks) • Popmoney (Person to Person Transfers) • View/Pay eBills • Enhanced Smartphone • New Alerts Apps (Sept 2013) • Enhanced Security 9
Slide 11: Committed to Efficiency Improvements
COMMITTED TO EFFICIENCY IMPROVEMENTS Net Interest Income Trend Efficiency Ratio¹ Trend Opportunity Noninterest Income Trend Peer Average² 64.5% Noninterest Expense Trend 1 – Efficiency ratio = Noninterest expense, excluding amortization of intangibles, divided by sum of taxable equivalent net intere
Slide 12: Pursuing Efficiency Gains
PURSUING EFFICIENCY GAINS Real Estate Initiatives: • Actions to optimize our real estate Green Bay holdings and capacity • 2013 – Consolidated Corporate offices in Green Bay (6 buildings) and Chicago (3 buildings) Chicago Project Pathway Benefits: Back Office Initiatives: Time to Workflow Audit Trai
Slide 13: Growing Net Interest Income While Margin Compresses
GROWING NET INTEREST INCOME WHILE MARGIN COMPRESSES Yield on Interest-earning Assets Net Interest Income & Net Interest Margin ($ in millions) Cost of Interest-bearing Liabilities 12
Slide 14: Capital Management Priorities
CAPITAL MANAGEMENT PRIORITIES 2012 2013 Priority Funding Organic • Fund Loan Growth and other Capital Investments Highest Growth Paying a • Increased quarterly • Paid $0.08 /share in Q1 Competitive dividend to $0.08/share in and Q2 Dividend Q4 2012 (60% increase • ~ 2% Dividend Yield from $0.05/ sha
Slide 15: Capital Deployment Opportunities
CAPITAL DEPLOYMENT OPPORTUNITIES Basel I ASBC Basel III ASBC 3 Basel III 2Q = 11.5% 2Q = 11.0% 8% - 9.5% Organic Asset Growth Potential Capital Excess Capital Non Organic Deployment Cash Acquisition 1.5 – 3% Options 2 Repurchase / +1 - 2.5% Special Dividend Capacity 1 = 7% 1 Regional and Community B
Slide 16: 2013 Second Half Outlook
2013 SECOND HALF OUTLOOK Growing the Franchise & Creating Long-Term Shareholder Value • Quarterly loan growth of 1 – 2%. • Flat year-over-year Loan Trends • Continued disciplined loan Expenses • Reduced regulatory costs offset by pricing continued franchise investments • Continued disciplined deposi
Slide 17: Why Associated
WHY ASSOCIATED Net Income Available to Common & ROCET1¹ Reasons to Invest Net Income • Committed to Efficiency Ratio Improvement Available to Return on Common Common Equity • Strong Capital Profile & Opportunities for ($ in millions) Tier 1 Capital Deployment • Leading Midwest Bank Operating in Attr
Slide 18: Our Vision
OUR VISION ASSOCIATED will be the most admired Midwestern financial services company, distinguished by sound, value-added financial solutions with personal service for our customers, built upon a strong commitment to our colleagues and the communities we serve, resulting in exceptional value for our
Slide 19: Appendix
APPENDIX 18 ea
Slide 20: Improvement in Credit Quality Indicators
IMPROVEMENT IN CREDIT QUALITY INDICATORS ($ IN MILLIONS) 19
Slide 21: Investment Securities Portfolio
INVESTMENT SECURITIES PORTFOLIO Investment Portfolio – June 30, 2013 Market Value Composition – June 30, 2013 Type Bk Value Mkt Value TEY Duration (000’s) (000’s) (%) (Yrs) Corporates Agency CMBS 2% Govt & $ 1,002 $ 1,004 0.30 1.13 9% All Other Agencies MBS 2,536,056 2,533,037 2.74 3.84 Municipals C
Slide 22: Commercial Loans by Industry
COMMERCIAL LOANS BY INDUSTRY AS OF JUNE 30, 2013 CB&L Loans by Industry ¹ CRE Loans by Industry ($6.0 billion) ($3.8 billion) 1 Based on NAICS codes 21
Slide 23: Commercial Loan Portfolios by Geography
COMMERCIAL LOAN PORTFOLIOS BY GEOGRAPHY AS OF JUNE 30, 2013 Commercial & Business Loans by State CRE Loans by State ($6.0 billion) ($3.8 billion) 1 22 Includes Missouri, Indiana, Ohio, Michigan, & Iowa
Slide 24: Consumer Loan Portfolios by Geography
CONSUMER LOAN PORTFOLIOS BY GEOGRAPHY AS OF JUNE 30, 2013 Residential Mortgage Loans by State Home Equity Loans by State ($3.5 billion) ($2.0 billion) Approximately half of home equity portfolio is in first-lien position 1 23 Includes Missouri, Indiana, Ohio, Michigan, & Iowa
Slide 25: Non Interest Income and Expense Composition
NON INTEREST INCOME AND EXPENSE COMPOSITION ST 1 HALF 2013 Noninterest Income by Category Noninterest Expense by Category ($166 million) ($337 million) 24
Slide 26: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 1H 2013 1H 2012 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012 Efficiency Ratio Reconciliation: Efficiency ratio (1) 69.64% 72.57% 69.54% 69.74% 73.71% 72.81% 72.30% Taxable equivalent adjustment (1.43) (1.62) (1.39) (1.46) (1.57) (1.61) (1.62) Asset gain (l
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