Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation April 24, 2025 Associated Banc-Corp
Slide 2: Important Disclosures
Important Disclosures 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 plan
Slide 3: First Quarter 2025 Results
First Quarter 2025 Results1 ASB reported net income available to common equity of $99 million, or $0.59 per common share ▪ GAAP diluted EPS of $0.59 ▪ Total loan growth of $526 million $0.59 Diluted Earnings Per Common Share ▪ Total C&I loan growth of $352 million ▪ Total deposit growth of $548 mill
Slide 4: Phase 2 Investments Complete; Positioned for Growth
Phase 2 Investments Complete; Positioned for Growth1 We are positioned to attract & deepen relationships, take commercial market share & enhance profitability Added Top Talent in Results as of 1Q 20251 FY 2025 Outlook3 Key Leadership Roles ▪ Commercial & Business RMs up 5-6% nearly 30% vs. 3Q23 Loan
Slide 5: Quarterly Loan Trends
Quarterly Loan Trends Total period end loans increased 2% vs. 4Q24, led by commercial Average Quarterly Loans Period End Loan Change (12/31/2024 to 3/31/2025) ($ in billions) ($ in millions) Total Loans +$526 (+2%) $29.6 $29.6 $30.2 $30.1 $29.4 CRE-Investor $369 $10.8 $11.0 $11.0 $11.5 $11.7 Commerc
Slide 6: Quarterly Deposit & Funding Trends
Quarterly Deposit & Funding Trends Total period end deposits & core customer deposits1 both increased 2% vs. the prior quarter Average Quarterly Deposits Period End Funding Change (12/31/2024 to 3/31/2025) ($ in billions) ($ in millions) $34.3 $34.8 Total Deposits +$548 (+2%) $33.3 $32.6 $33.3 $5.7
Slide 7: Average Yield Trends
Average Yield Trends Earning asset yields decreased just 1 bp during 1Q, while interest-bearing liability costs decreased 23 bps Quarterly Average Yields (%) Asset & Liability Yield / Rate Trends (%) 7.56 7.52 7.45 7.09 7.22 7.24 7.27 6.71 6.74 6.43 5.64 5.65 5.68 5.46 5.45 5.72 5.65 5.52 5.58 5.59
Slide 8: Net Interest Income & Net Interest Margin Trends
Net Interest Income & Net Interest Margin Trends NII increased by $16 million & NIM expanded by 16 bps vs. the prior quarter Net Interest Income & Net Interest Margin 1Q 2025 Pro Forma Net Interest Margin1 ($ in millions) The mortgage loan sale we completed in January 2025 would have added an increm
Slide 9: Interest Rate Risk Management
Interest Rate Risk Management1 We’ve taken proactive steps to reduce our asset sensitivity & protect NII in a falling rate environment Balance Sheet Actions Since 2021 Estimated NII Sensitivity Profile (%) (12-Month Ramp, Dynamic Forecast) ▪ Added $2.9 billion of fixed-rate prime/super prime Auto Fi
Slide 10: Cash & Investment Securities Portfolio
Cash & Investment Securities Portfolio We continue to target securities + cash / total assets of 22% to 24% in 2025 Period End Investment Securities Average Investment Securities Yields ($ in billions) $8.7 $8.5 4.22% $8.1 $0.2 $7.9 $0.2 $7.8 $0.2 3.55% 3.69% 3.66% 3.64% $0.2 $0.2 $3.7 $3.7 $3.8 $3.
Slide 11: Noninterest Income Trends
Noninterest Income Trends 1Q GAAP noninterest income was impacted by the settlement of the mortgage loan sale announced in 4Q Quarterly Noninterest Income Trends ($ in millions) $72 $65 $65 $67 $10 $59 $11 $11 $3 $13 $5 $3 $2 $9 $3 $4 $4 $4 $5 $4 $12 $12 $11 $12 $10 $12 $14 $13 $13 $12 $22 $23 $24 $
Slide 12: Noninterest Expense Trends
Noninterest Expense Trends We have maintained noninterest expense levels at approximately 2% of average assets Noninterest Expense Trends Efficiency Ratio (%) ($ in millions) 103.1 $224 60.6 58.2 59.5 59.5 59.5 59.5 60.1 59.7 58.6 $14 $211 $198 $196 $201 $34 $34 $24 $27 $31 $9 $10 1Q 2024 2Q 2024 3Q
Slide 13: Capital Profile
Capital Profile We continue to target a CET1 range of 10% to 10.5% in 2025 Capital Ratios (%) CET1 Including AOCI1 (%) 12.61 12.75 10.01 10.1110.01 9.68 9.72 9.79 9.43 9.38 8.79 9.01 10.58 10.68 10.01 10.11 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 CET1 Ratio CET1 Ratio Incl. AOCI 7.82 7.96 Tangible B
Slide 14: Allowance for Credit Losses on Loans (ACLL)
Allowance for Credit Losses on Loans (ACLL) Our ACLL percentage decreased by 1 basis point vs. the prior quarter to 1.34% ACLL1 Update ACLL / Total Loans (%) ▪ ACLL increased $4 million from the prior quarter to $407 million, driven primarily by incremental credit movement coupled with 1.31 1.32 1.3
Slide 15: Credit Quality Trends
Credit Quality Trends 1Q 2025 credit quality remained solid with delinquencies down $33 million vs. 4Q 2024 & NCOs of just $9 million Total Delinquent Loans Nonaccrual Loans ($ in millions) ($ in millions) $178 $154 $128 $123 $135 $80 $74 $23 $24 $14 $56 $48 $21 $32 $51 $47 $19 $19 $17 $37 $77 $48 $
Slide 16: High-Quality Consumer Loan Portfolio
High-Quality Consumer Loan Portfolio1 94% of our $10.8 billion consumer loan portfolio is prime / super prime Period End Consumer Loans Prime/Super Prime Consumer Loan Portfolio ($ in millions) % of Total 8% 3/31/2025 Loans 6% Super Prime (720+) Residential Mortgage $7,000 23.1% Portfolio Prime (660
Slide 17: FY 2025 Outlook
FY 2025 Outlook FY 2025 Guidance1 Total Loan Growth Up 5% to 6% Total Deposit Growth Up 1% to 2% Core Customer Deposit Growth2 Up 4% to 5% Net Interest Income Up 12% to 13% Effective Tax Rate 19% to 21% CET1 Capital Ratio 10% to 10.5% GAAP Adjusted FY 2024 Result FY 2024 Result3 FY 2025 Guidance4 No
Slide 18: Appendix
Appendix
Slide 19: Associated Banc-Corp (NYSE: ASB)
Associated Banc-Corp (NYSE: ASB)1 With roots dating back to 1861, ASB is the largest bank holding company based in Wisconsin2 $43B $30B Assets Loans $5B $35B Equity Deposits Risk Mgmt & Corporate & 183 ~4,000 Shared Services Commercial Branches Employees 18% Specialty Consumer Commercial 21% 37% & B
Slide 20: Balance Sheet Repositioning Summary
Balance Sheet Repositioning Summary Actions taken as a result of the balance sheet repositioning announced during the fourth quarter of 2024 Actions Taken as of All Actions Complete as Estimated 12/4/2024 12/31/2024 of 3/31/2025 $0.2B in ARMs & $723M in residential mortgage $695M in residential mort
Slide 21: Improving our Return Profile Over Time
Improving our Return Profile Over Time1 Our efforts to remix the balance sheet & drive toward improved profitability are on track Assets Liabilities Growing diversified asset classes to Attracting & deepening customer decrease reliance on legacy low-yielding, relationships to decrease reliance on lo
Slide 22: Stable, Granular Deposit Portfolio
Stable, Granular Deposit Portfolio As of 3/31/2025, ASB’s total liquidity sources covered 143% of uninsured, uncollateralized deposits Period End Deposit Trends (Associated Bank, N.A.) Liquidity Sources ($ in billions) $34.9 $35.2 12/31/2024 3/31/2025 $33.7 $33.8 $32.8 Federal Reserve Balance $451.3
Slide 23: Additional Quarterly Loan Trends
Additional Quarterly Loan Trends Period End Quarterly Loan Trends Average Loan Change (4Q 2024 to 1Q 2025) ($ in billions) ($ in millions) $29.6 $30.0 $29.8 $30.3 Total Loans ($91) (-0.3%) $29.5 CRE-Investor $295 $11.0 $11.1 $11.4 $11.7 $12.0 Commercial & Industrial $244 Auto Finance $73 $7.3 $7.3 $
Slide 24: Additional Quarterly Deposit & Funding Trends
Additional Quarterly Deposit & Funding Trends Period End Quarterly Deposits Average Funding Change (4Q 2024 to 1Q 2025) ($ in billions) ($ in millions) $34.6 $35.2 $33.7 $33.6 Total Deposits +$496 (+1%) $32.7 $5.8 $6.1 $6.3 $5.8 $5.9 Core Customer Deposits1 +$538 (+2%) $8.0 $7.9 Interest-Bearing Dem
Slide 25: Total Loans Outstanding Balances as of March 31, 2025
Total Loans Outstanding Balances as of March 31, 2025 ($ in millions) % of Total % of Total 3/31/20251 Loans 3/31/20251 Loans 2 C&BL (by NAICS ) CRE (by property type) Utilities $ 2,726 9.0% Multi-Family $ 3,254 10.7% Manufacturing & Wholesale Trade 2,625 8.7% Industrial 1,643 5.4% Real Estate (incl
Slide 26: Loan Stratification Outstanding Balances as of March 31, 2025
Loan Stratification Outstanding Balances as of March 31, 2025 Illinois Illinois Minnesota 15% Minnesota 20% 10% 7% Minnesota Other Texas 9% Illinois Midwest2 6% 14% 21% Wisconsin C&BL by Other Other CRE by 22% Geography Midwest 2 10% Wisconsin Total Midwest 12% 2 Geography $12.0 billion 27% Loans1 W
Slide 27: Swaps Update
Swaps Update Contractual swap balances as of 3/31/2025 ($ in billions) $2.85 $2.45 $2.45 $2.00 $1.75 3.82% 3.89% 3.89% 3.83% 3.79% 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Notional Balances Weighted Average Yield 26
Slide 28: Strengthened Balance Sheet
Strengthened Balance Sheet1 We’ve exited or greatly reduced certain historically volatile portfolios while growing historically stable assets Land & For-Sale Housing Loans / Total Loans Total Loan Portfolio Evolution ($ in billions) ~23% of total NCOs during WAvg. NCO Rates 7% a peak loss period fro
Slide 29: High-Quality Commercial Real Estate Portfolio
High-Quality Commercial Real Estate Portfolio1 ASB has built a diversified CRE portfolio by partnering with well-known developers in stable Midwest markets CRE Credit Quality 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 Portfolio LTV 59% 59% 58% 57% 57% Com'l & Delinquencies3/Loans 0.28% 0.01% 0.22% 0.50% 0.03% Co
Slide 30: Reconciliation & Definitions of Non-GAAP Items
Reconciliation & Definitions of Non-GAAP Items Period End Core Customer Deposits Reconciliation ($ in millions) 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 Total deposits $35,197 $34,648 $33,554 $32,691 $33,713 Network transaction deposits (1,883) (1,758) (1,567) (1,503) (1,793) Brokered CDs (4,198) (4,
Slide 31: Reconciliation & Definitions of Non-GAAP Items
Reconciliation & Definitions of Non-GAAP Items Non-GAAP Efficiency Ratios Reconciliation ($ in millions) 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 Total expense for efficiency ratios reconciliation Noninterest expense $211 $224 $201 $196 $198 Less: Other intangible amortization 2 2 2 2 2 Total expense
Slide 32: Reconciliation & Definitions of Non-GAAP Items
Reconciliation & Definitions of Non-GAAP Items Nonrecurring Item Noninterest Expense Reconciliation YTD ($ in millions) Dec 2024 4Q 2024 GAAP noninterest expense $818 $224 Loss on prepayments of FHLB advances 1 (14) (14) Noninterest expense, excluding nonrecurring items $804 $210 Common Equity Tier