Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (May 2022)
17 slides from Associated Banc-corp's investor presentation, May 11, 2022
Slide 1: Second Quarter Investor Presentation
May 11, 2022 Second Quarter Investor Presentation Associated Banc-Corp Exhibit 99.1
Slide 2: Forward-Looking Statements
1 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
Slide 3: A Transformative Year for Associated Banc-Corp
2 A Transformative Year for Associated Banc-Corp President & CEO Andy Harmening joined ASB on April 28, 2021 May-July 2021 Met with hundreds of stakeholders during a 100 Days of Listening Tour September 2021 Announced new Digital Forward, Growth Focused strategic direction for ASB 3Q-4Q 2021 Launche
Slide 4: Driving Higher Returns: Target Mid-Teens ROATCE
3 ▪ Expanding our Lending Capabilities: New auto finance, equipment finance & asset-based lending verticals ▪ Growing our Core Businesses: Adding new relationship managers and deepening client penetration ▪ Investing in our Digital Transformation: Planned $50 million investment over the next five ye
Slide 5: Emerging Commercial Growth Dynamics
4 Mortgage Warehouse + PPP $1.9 $1.9 $1.8 $1.8 $1.8 $1.6 $1.7 $1.9 $2.1 $2.2 $3.5 $3.6 $3.8 $4.0 $4.0 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 34.5 33.5 34.3 34.6 35.2 36.8 36.7 38.3 39.3 43.5 42.8 43.0 41.2 40.2 42.2 42.8 42.5 42.9 Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Actual Historical Avg.
Slide 6: Our Strategic Initiatives Remain on Track
5 $13,706 $14,303 $14,422 $16,100 $17,000 $1,414 $1,247 $1,013 $15,120 $15,550 $15,434 3Q 2021 4Q 2021 1Q 2022 YE2022 Target YE2023 Target New Asset-Based Lending + Equipment Finance2 Core Commercial1 Auto Finance Our Strategic Initiatives Remain on Track $7 $143 $498 $1,450 $2,500 3Q 2021 4Q 2021 1
Slide 7: A Solid Digital Foundation
6 377 398 401 1Q 2020 1Q 2021 1Q 2022 Customer-Originated Digital Mortgage Applications 26% 31% 34% 1Q 2020 1Q 2021 1Q 2022 A Solid Digital Foundation Digital Engagement Associated’s customer base is digitally engaged and receptive to self-service options Active Digital Banking Users (in thousands)
Slide 8: Our 2022 Digital Forward Roadmap
7 Our 2022 Digital Forward Roadmap ▪ Complete transformation of our mobile and web experience for 400K+ retail customers ▪ Launched pilot in 1Q 2022; on track for expected Summer 2022 rollout ▪ Fully integrated customer insights and personalization ▪ Streamline and connect new consumer and small bus
Slide 9: April Initiative Updates
8 April Initiative Updates1 Expanding our Lending Capabilities Growing our Core Businesses Investing in our Digital Transformation Initiative Highlights 4/30/2022 Update ▪ Launched internal pilot of new NCR D3 digital platform in 1Q 2022 ▪ Modernization efforts focusing on “hollowing out” our core ▪
Slide 10: 2022 Full-Year Outlook
9 Balance Sheet Management1 ▪ Auto finance loan growth of ~$1.3 billion ▪ Total commercial2 loan growth of $850 million to $1.1 billion ▪ Target investments / total assets ratio of approximately 20% Net Interest Income & Noninterest Income ▪ Net interest income of $855+ million ‒ Assumes a 25bp incr
Slide 11: ASB Investment Thesis
10 ASB Investment Thesis Strong Foundation Deep-rooted franchise built on a strong foundation with emerging momentum Drivers of Emerging Momentum Deep Roots in Strong Communities Low-Cost Deposit Franchise2 Effective Risk Management Disciplined Expense Management 1 U.S. Bureau of Labor Statistics, S
Slide 12: Appendix
Exhibit 99.1 6o Appendix
Slide 13: Funding and Margin Trends
12 Funding and Margin Trends $3.1 $2.1 $1.9 $1.4 $0.9 $2.0 $2.8 $3.1 $2.3 $1.5 $1.3 $6.3 $7.3 $7.0 $6.5 $6.9 $7.0 $1.5 $1.9 $2.4 $3.3 $4.1 $4.5 $4.0 $4.8 $5.1 $5.6 $6.1 $6.7 $5.0 $5.2 $5.2 $6.9 $8.1 $8.3 $21.9 $24.1 $24.7 $26.0 $27.7 $28.6 2017 2018 2019 2020 2021 1Q 2022 ($ in billions) Average Dep
Slide 14: Strong Capital and Liquidity Profile
13 Loan / Deposit Ratio 95.0% 86.4% 1Q 2020 1Q 2022 $5.3 $6.9 $0.7 $0.5$6.0 $7.4 1Q 2020 1Q 2022 Securities Cash ($ in billions) Strong Capital and Liquidity Profile Capital Priorities EoP Securities + Cash Target CET1 at or above 9.5% Common Dividend 40-50% Organic Growth 50%-60% Inorganic Growth 0
Slide 15: 2021-2023 Community Commitment Plan
14 2021-2023 Community Commitment Plan Associated is working to address economic development and equity issues in each of our markets $3.37 billion Three-year commitment To support minority communities, low-to-moderate income (LMI) communities and small businesses in our three-state branch footprint
Slide 16: Environmental, Social and Governance Highlights
15 Environmental, Social and Governance Highlights Associated’s Environmental, Social and Governance Report was released in March 2022 Nearly $2.2 billion in credit commitments to support wind, solar, battery and hydroelectric projects since 2011 Over 36% of our Board1 is diverse in terms of ethnici
Slide 17: Colleague Experience and Engagement
16 Colleague Experience and Engagement1 “Inclusive,” Flexible” and “Diverse” are the top three words colleagues use to describe ASB’s culture 1 All updates as of or for the period ended December 31, 2021. Branch / On-Site 39% Hybrid 51% Remote 10% Flexible Work Environment ▪ 85% of colleagues partic
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