Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (September 2022)
23 slides from Associated Banc-corp's investor presentation, Sep 6, 2022
Slide 1: Third Quarter Investor Presentation
September 6, 2022 Third 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: Franchise Profile and Key Highlights
2 Associated Banc-Corp (NYSE: ASB) is the largest bank holding company based in Wisconsin2 Franchise Profile1 Key Highlights $37B $26B $4B $29B ~4,100 202 Assets Loans Equity Deposits Employees Branches3 1 All figures as of or for the period ended June 30, 2022 unless otherwise noted. 2 Based on ass
Slide 4: ASB Investment Thesis
3 ASB Investment Thesis Strong Foundation ASB is a deep-rooted franchise built on a strong foundation with emerging momentum Drivers of Forward Momentum Deep Roots in Strong Communities Low-Cost Deposit Franchise2 Effective Risk Management Disciplined Expense Management 1 U.S. Bureau of Labor Statis
Slide 5: Evolution of our Franchise
4 Evolution of our Franchise The ASB franchise has evolved significantly over the past 12 years…and the past 12 months 1 Diversified & De-Risked Loan Portfolio 2 Improved Core Funding Profile 3 Investing in Digital Transformation 4 Growing & Expanding Lending Capabilities 5 Expanding Deposit Capabil
Slide 6: Diversified & De-Risked Loan Portfolio
5 $3.7 $4.8 $2.0 $1.8 $3.5 $1.7 $2.1 $8.0 $4.0 $10.2 $15.3 $26.5 2Q 2009 2Q 2022 Diversified & De-Risked Loan Portfolio1 Since 2009, ASB has repositioned its lending away from higher-risk asset classes CRE & Construction Lending Oil & Gas 37% 25% 2Q 2009 2Q 2022 Commercial Real Estate Loans / Total
Slide 7: Average Deposit Trends by Segment
6 Average Deposit Trends by Segment1 $8.6 $5.1 $17.2 $27.7 2Q 2016 2Q 2022 Since 2016, we’ve grown low-cost, granular consumer deposits while reducing wholesale funding 21% 7% 32% 30% 47% 63% $22.2 $29.8 2Q 2016 2Q 2022 Community, Consumer & Business Corporate and Commercial Specialty Risk Mgmt & Sh
Slide 8: Investing in Digital Transformation
7 Over the past 18 months, we’ve ramped up our investment in digital to better serve our customers Cloud-based platform with 99.9% uptime Access to all features—anytime, anywhere (mobile, tablet, computer) Improved security and self-service controls Open architecture allowing for quarterly enhanceme
Slide 9: New lending initiatives driving balanced growth
8 Core Commercial1 New Asset-Based Lending + Equipment Finance2 Auto Finance $15,550 $16,599 $17,000 $18,000 12/31/21 6/30/22 12/31/22 Target 12/31/23 Target $143 $848 $1,400 $2,450 12/31/21 6/30/22 12/31/22 Target 12/31/23 Target $67 $152 $300 $650 12/31/21 6/30/22 12/31/22 Target 12/31/23 Target B
Slide 10: Deposit Resilience & Stability
9 3% 3% 3% 65% 65% 65% 32% 32% 32% $28.5 $28.4 $28.6 4Q 2021 1Q 2022 2Q 2022 Our current in-flight strategies and recent trends give us confidence in our deposit outlook for 2022 and 2023 Community, Consumer & Business Risk Mgmt & Shared Services (Treasury) ASB Deposit Thesis Deposit Resilience & St
Slide 11: Updated Guidance
10 Balance Sheet Management1 ▪ In line with previous guidance Net Interest Income & Noninterest Income ▪ Net interest income (GAAP) of $910M+ ‒ Assumes a 75bp Fed Funds increase in September and a 25bp increase at each remaining FOMC meeting this year; interest-bearing deposit betas of 30% to 40% fo
Slide 12: Building on our Strong Foundation
11 Building on our Strong Foundation Our growth focused, digital forward plan has already added to the bottom line and is proving to be sustainable Improved Core Funding Profile Diversified & De-Risked Loan Portfolio Investing in Digital Transformation Growing & Expanding Lending Capabilities Expand
Slide 13: Appendix
Appendix
Slide 14: EoP Loan Change (1Q 2022 to 2Q 2022)
13 EoP Loan Change (1Q 2022 to 2Q 2022) We saw broad-based, diversified loan growth in 2Q, led by general commercial and consumer borrowing Broad-Based Lending Growth $(95) $(8) $8 $15 $16 $28 $32 $70 $274 $321 $350 $394 $559 Mortgage Warehouse Home Equity and Other Cons. CRE Investor Power & Utilit
Slide 15: Average Yields: Poised for Further Margin Expansion
14 Average Yields (%) Poised for Further Margin Expansion 2.89 2.91 2.88 3.36 2.47 2.44 2.44 2.972.83 2.84 2.89 2.97 1.57 1.76 1.96 2.29 0.30 0.27 0.26 0.36 0.07 0.05 0.06 0.15 0.38 0.32 0.29 0.26 3Q 2021 4Q 2021 1Q 2022 2Q 2022 ASB is structurally asset-sensitive, with strong asset betas and contro
Slide 16: Net Interest Income & Net Interest Margin Trends
15 $180 $184 $187 $188 $216 2.45% 2.37% 2.40% 2.50% 2.78% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Net Interest Income & Net Interest Margin Trends ($ in millions) NII and NIM continued to grow in 2Q, driven by rising loan yields and controlled deposit costs Quarterly Net Interest
Slide 17: Diversified & De-Risked Loan Portfolio Summary
16 ▪ Focused on diversified strategies that target high-quality customers, markets and risk metrics ▪ Net charge offs of only $13 million since the end of 2Q 2021, reflecting strong portfolio dynamics ▪ Largest single borrower < 1% of total loans; Top 10 largest borrowers < 4% of total loans Portfol
Slide 18: Digital Engagement Metrics
17 Digital Engagement Metrics 356 396 394 399 2Q 2019 2Q 2020 2Q 2021 2Q 2022 Customer-Originated Digital Mortgage Applications 24% 33% 33% 35% 2Q 2019 2Q 2020 2Q 2021 2Q 2022 Investing in Digital Transformation ASB is starting with a strong digital foundation; customer base has maintained engagemen
Slide 19: Investing in Digital Transformation
18 Investing in Digital Transformation We continue to redirect spend to optimize physical assets and fund customer-centric digital enhancements 202 176 165 26 19 19 20 14 14 6 4 270 237 215 213 248 215 202 2011 2013 2015 2017 2019 2021 2022 ASB BKMU (58) HBAN (32) FNB (9) 1 Branch count at year end.
Slide 20: Total Loans Outstanding
19 Total Loans Outstanding Balances as of June 30, 2022 Well-diversified $26 billion loan portfolio ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 6/30/2022 1 % of Total Loans 6/30/2022 1 % of Total Loans C&BL (by NAICS 2 ) CRE (by property type) Util
Slide 21: Loan Stratification
20 Wisconsin 28% Illinois 23% Minnesota 10% Other Midwest 14% Texas 4% Other 21% Manufacturing & Wholesale Trade 20% Real Estate 17% Power & Utilities 21% Mortgage Warehouse 9% 1 Excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. Wind 41% Natural
Slide 22: 2021-2023 Community Commitment Plan
21 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 23: Environmental, Social and Governance Highlights
22 Environmental, Social and Governance Highlights1 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 Board is diverse in terms of ethnici
Associated Banc-Corp — Investor Presentation (September 2022) on 6ix