Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (November 2021)
22 slides from Associated Banc-corp's investor presentation, Nov 15, 2021
Slide 1: Associated Banc-Corp Fall 2021 Shareholder Engagement
ASSOCIATED BANC-CORP FALL 2021 SHAREHOLDER ENGAGEMENT x Associated Bank
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: Introduction
INTRODUCTION a) Follow-up on our outreach from the fall of 2020 and successful 2021 Say on Pay vote Introduce our new CEO, Andy Harmening Discuss our new strategic initiatives Recap 2021 as a transition year for compensation changes Highlight some of our ESG Initiatives Andy Harmening started as Pre
Slide 4: Our Strategic Initiatives
Our Strategic Initiatives x) We are focused on driving Positive Operating Leverage and improved ROATCE + Diversifying our consumer portfolio by growing Auto Finance Expanding our : as is Lending + Broadening our current Asset-Based Lending capabilities Capab + Launching an Equipment Finance vertical
Slide 5: Expanding our Lending Capabilities Update
Expanding our Lending Capabilities Update YTD Progress' i) 2022-23 Outlook Rolling out Auto Finance =@ Nearly 800 dealers signed up Currently active with over 200 “pilot” dealers in 13 states Average FICO 747 for initial loans, ~six-year average term, ~70% used cars Expect over $1.35 billion in loan
Slide 6: Growing our Core Businesses Update
Growing our Core Businesses Update YTD Progress' 6 2022-23 Outlook * Hired an incremental five Corporate & Commercial Banking relationship managers since July + Converted two existing ASB portfolio managers to relationship managers + Expectto add 10+ commercial relationship managers across the footp
Slide 7: Digital Transformation: Already Underway
DIGITAL TRANSFORMATION: ALREADY UNDERWAY x) We have begun shifting our investment priorities to ensure Associated has a digital forward focus Leveraged our Strong Digital Foundation’ + 64% retail digital adoption + 80% digital activation among new-to-bank retail customers + Peer-leading mobile check
Slide 8: Optimizing Capital Proactively
OPTIMIZING CAPITAL PROACTIVELY a) Our priorities are to fund organic growth and pay a competitive dividend, while optimizing our capital structure 2021 Progress 2022-23 Outlook Increased common dividend by Targeting a 2022 payout ratio of Dividends 11% from $0.18 to $0.20 in 3Q DRACO 2021 + Future d
Slide 9: Positioning for Improved Financial Performance
Positioning for Improved Financial Performance x) Our growth focused and digital forward vision is expected to drive higher shareholder returns ASB 3+ Year Operating Targets 2.75% Net ’ Interest Higher phate wee 7.50% TCE Ratio! Returns Proactively Expanding Optimizing — Growing our 55%-60% Core Eff
Slide 10: Strategic Initiative Updates
Strategic Initiative Updates We announced a new growth focused and digital forward vision for Associated on September 9, 2021 Expanding our Lending Capabilities Growing our Core Businesses Investing in our Digital Transformation Optimizing Capital Proactively Booked our first Auto Finance loans on S
Slide 11: Open Discussion on Areas of Investor Interest
OPEN DISCUSSION ON AREAS OF INVESTOR INTEREST
Slide 12: Recap of 2021 Pay Program Changes
RECAP OF 2021 PAY PROGRAM CHANGES DESIGNED TO REINFORCE ACHIEVEMENT OF OUR BUSINESS STRATEGY AND REFLECT SHAREHOLDER FEEDBACK 2021 Management Incentive Plan (Annual) 2021 Long-term Incentives (Executive Leadership Team) Refined to reflect more appropriate benchmarks for the Company ASB's size is bet
Slide 13: 2022 Pay Program Changes
2022 PAY PROGRAM CHANGES DESIGNED TO REINFORCE ACHIEVEMENT OF OUR BUSINESS STRATEGY Approach to variable pay 2022 Performance measures Refined to reflect mergers and acqui Continued use of the Management Incentive Plan and Long-term Incentives (performance shares and time-based restricted stock) to
Slide 14: Shareholder Friendly Pay Practices
SHAREHOLDER FRIENDLY PAY PRACTICES x) ENSURING GOOD CORPORATE GOVERNANCE v v <~ «— KK Double trigger change in control equity vesting Robust clawback policy Stock ownership requirements, including salary multiple and post-vesting holding period for all Executive Leadership Team members Dividend equi
Slide 15: Executive Compensation: Andy Harmening
EXECUTIVE COMPENSATION x) ANDY HARMENING — PRESIDENT & CHIEF EXECUTIVE OFFICER Robust Search + Upon the announcement of Phil Flynn’s retirement on January 21, 2021, the Succession Planning Committee undertook a robust search for his successor as CEO. * The Committee engaged Diversified Search, an ex
Slide 16: Executive Compensation: Structure of CEO Pay Package
EXECUTIVE COMPENSATION x) ANDY HARMENING — PRESIDENT & CHIEF EXECUTIVE OFFICER Structure of CEO Pay Package Mr. Harmening’s pay package was determined considering a competitive market review of CEO compensation amongst our peer. His target total compensation package is valued at $5,000,000 and is we
Slide 17: Executive Compensation: Philip Flynn Retirement Package
EXECUTIVE COMPENSATION x) PHILIP FLYNN — RETIREMENT PACKAGE The Importance of a Good Transition The Board is dedicatedto supporting a successful transition from Phil Flynn to Andy Harmening. Mr. Flynn's retirement package was structured to recognize his contributions to the success of Associated Ban
Slide 18: Executive Compensation: Philip Flynn Retirement Package
EXECUTIVE COMPENSATION PHILIP FLYNN — RETIREMENT PACKAGE The Importance of a Good Transition + Mr. Flynn’s compensation for 2021 includes the following Continued base salary of $1,250,000 Annual bonus under the management incentive plan in a target amount of 85% of base salary SERP contributions of
Slide 19: Highly Qualified & Experienced Board
HIGHLY QUALIFIED & EXPERIENCED BOARD +) * 3directors retired at the 2021 Annual Meeting + Over 36% of the directors are diverse and 27% are female + Average tenure was brought down to 8 years with a mix of short- and long-tenured directors Finance Leadership Government/Public Policy/Regulation Risk
Slide 20: ESG at Associated Bank
ESG AT ASSOCIATED BANK We understand that providing valuable insights around Associated’s actions and strategies in our Environment, Social and Governance space helps our stakeholders make better informed investment decisions. We have: 1. Enhanced the responsibilities of our Corporate Governance & S
Slide 21: ESG at Associated Bank
ESG AT ASSOCIATED BANK x) Human Capital Management with a strong focus on DE&! v Diversity and inclusion are key components of our culture — 31% of senior leadership roles filled by women — 7 Colleague Resource Groups (CRGs") with participation from over 44% of our colleagues In 2021, added the Blac
Slide 22: ESG at Associated Bank
ESG AT ASSOCIATED BANK aw Community Commitment and Reinvestment We use our expertise and financial supportto promote affordable housing, provide small- business lending and advance neighborhood development. Minority and Small-Business Assistance Programs — 2020 Results v Homebuyer assistance program
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