Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Bank of America Merrill Lynch Banking & Financial Services Conference 2012
23 slides from Associated Banc-corp's conference presentation, Nov 13, 2012
Slide 1: Associated Banc-Corp Investor Presentation
Exhibit 99.1 Associated Banc-Corp Investor Presentation Bank of America Merrill Lynch Banking & Financial Services Conference November 14, 2012
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: Leading Midwest Banking Franchise
Leading Midwest Banking Franchise • Top 50, publicly traded, U.S. bank holding company • $23 billion in assets; largest bank headquartered in Wisconsin – Over 250 banking offices serving over 150 communities 1 – #1 mortgage originator in Wisconsin Minneapolis Wausau 2 Green Bay – #1 SBA lender in Wi
Slide 4: Third Quarter 2012 Highlights
Third Quarter 2012 Highlights Solid Quarterly Performance Net Income • Net income available to common shareholders of $45 million or $0.26 per share & ROT1CE • Return on Tier 1 Common Equity of 9.7%, compared to 7.8% a year ago • Total loans of $15.0 billion were up $267 million, or 2% from the end
Slide 5: Capital Management Priorities and Plans
Capital Management Priorities and Plans 1) Funding Organic Growth • Focus remains on funding organic loan growth across the footprint • Supporting business growth initiatives and ongoing capital investments 2) Paying a Competitive Dividend • Increasing quarterly dividend to $0.08/share, effective De
Slide 6: Loan Portfolio Growth and Composition
Loan Portfolio Growth and Composition Total Loans of $15.0 billion at September 30, 2012 Total Loans ($ in billions) 3Q 2012 Net Loan Growth of $267 million ($ balances in millions) Peak Loans (4Q 2008) $16.3 billion Residential Mortgage $125 $16.0 +2% QoQ Oil & Gas $69 Power & Utilities $67 Total C
Slide 7: Managing the Cost of Funds & Margin
Managing the Cost of Funds & Margin Yield on Interest-earning Assets Average Deposits ($ balances in billions) 3.88% 3.81% 3.85% $15.6 3.80% 3.73% $15.0 $15.1 $14.9 $14.4 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 Cost of Interest-bearing Deposits Net Interest Ma
Slide 8: Rebuilding Commercial & Business Lending Portfolio
Rebuilding Commercial & Business Lending Portfolio Commercial & Business Lending Loans ($ in billions) $6.0 $5.7 $5.5 $5.5 $5.5 $5.4 $5.3 $5.0 $5.0 $4.9 $4.9 $4.7 $4.5 $4.5 $4.3 $4.3 $4.2 $4.2 $4.2 $4.1 $4.0 $3.5 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2009 2009 2009 2010 2010 2010
Slide 9: Rebuilding Commercial Real Estate Lending Portfolio
Rebuilding Commercial Real Estate Lending Portfolio Commercial Real Estate Lending Loans ($ in billions) Construction $6.0 CRE $5.0 $4.6 $4.6 $4.4 $4.2 $4.0 $3.8 $4.0 $3.4 $3.4 $3.4 $3.1 $3.0 $3.1 $3.2 $2.9 $2.9 $2.9 $3.0 $2.0 $1.0 $0.0 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2009
Slide 10: Refocused Commercial Real Estate Activities
Refocused Commercial Real Estate Activities CRE / Construction – 3Q 2009 CRE / Construction – 3Q 2012 SINGLE HOTEL / FAMILY / MOTEL CONDO 3% 2% OTHER 8% INDUSTRIAL 5% HOTEL / MOTEL INDUSTRIAL OTHER 8% 4% 6% CRE / Construction – 3Q 2009 CRE / Construction – 3Q 2012 MISSOURI MISSOURI 2% MINNESOTA 3% I
Slide 11: Enhanced Private Client & Institutional Services
Enhanced Private Client & Institutional Services Highlights Hired new Director of Trust (based in Milwaukee) & Director of Private Banking (based in Chicago) in order to drive business growth New hire strategy focused on team lift-outs across the footprint (Minneapolis & Chicago) Created dedicated P
Slide 12: Strong Mortgage Banking Business
Strong Mortgage Banking Business Residential Mortgage Loan Portfolio Highlights Hybrid ARMs (3/5/7) ($ in billions) • Opened new channels 15-year fixed and expanded into $3.1 $3.1 $3.2 additional markets $3.0 $3.0 $2.7 $2.8 $2.5 • Retaining primarily $2.0 hybrid ARMs on balance sheet as well as ~$1.
Slide 13: Refinement of Branch Strategy
Refinement of Branch Strategy Increasing Deposit Base while Optimizing Traditional Retail Network Total Deposits & Customer Funding Highlights Non-maturity deposits ($ in billions) • Deposits & customer Time Deposits funding have grown by $2.5 billion since 2007 $16.6 $17.2 $16.1 $16.3 $17.5 • At th
Slide 14: Footprint Update
Footprint Update Continuing To Invest In Our Branches While Optimizing Our Network Highlights Completed the remodel, relocation, or new construction of over 30 branches in 2011 50 remodels planned in 2012; completed ~40 branches YTD 2012 YTD 2012 PPE expense Example in-store remodel Example small-fo
Slide 15: Continued Improvement in Credit Quality Indicators
Continued Improvement in Credit Quality Indicators ($ in millions) 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 Potential problem loans $ 660 $ 566 $ 480 $ 410 $ 404 Nonaccruals $ 403 $ 357 $ 327 $ 318 $ 278 Provision for loan losses $ 4 $ 1 $ 0 $ 0 $ 0 Net charge offs $ 30 $ 23 $ 22 $ 24 $ 18 ALLL/Total
Slide 16: Why Associated
Why Associated Net Income Available to Common & ROT1CE Reasons to Invest Net Income • Leading Midwest Bank Operating in Available to Return on Tier 1 Common Common Equity Attractive Markets ($ in millions) • Core Organic Growth Opportunity $50 12.50% $45 • Disciplined Deposit Pricing & Stable Margin
Slide 17: Associated Banc-Corp vision statement
Associated Banc-Corp 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 18: Appendix
Appendix N Associated
Slide 19: Maintaining a Strong Capital Profile
Maintaining a Strong Capital Profile 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 ASBC Capital Ratios TCE /TA 8.77% 8.84% 9.01% 8.99% 8.91% Leverage Ratio 9.62% 9.81% 10.03% 9.95% 9.99% Tier 1 Common Ratio 12.44% 12.24% 12.49% 12.04% 12.01% Tier 1 Ratio 14.35% 14.08% 14.33% 13.64% 13.57% Total Capital Ra
Slide 20: High Quality Investment Securities Portfolio
High Quality Investment Securities Portfolio Investment Portfolio – September 30, 2012 Market Value Composition – September 30, 2012 Type Bk Value Mkt Value TEY Duration Corporates (000’s) (000’s) (%) (Yrs) CMBS 2% 2% Govt & Agencies $ 1,010 $ 1,011 0.30 1.88 MBS 2,043,149 2,134,182 3.37 2.47 Munici
Slide 21: Consumer Loan Portfolios by Geography
Consumer Loan Portfolios by Geography (as of September 30, 2012) Residential Mortgage Loans by State Home Equity Loans by State MISSOURI OTHER 2% OTHER 3% 4% MINNESOTA 11% MINNESOTA 10% ILLINOIS 16% WISCONSIN WISCONSIN 71% 51% ILLINOIS 32% Approximately half of home equity portfolio is in first-lien
Slide 22: Commercial & Business Lending Loans
Commercial & Business Lending Loans (as of September 30, 2012) Commercial & Business Lending Loans by State Commercial & Business Lending Loans by Industry NORTH CALIFORNIA Professional, Rental and Leasing Transportation and CAROLINA 3% Scientific, and Services 4% Warehousing 2% TEXAS 4% 3% Technica
Slide 23: Commercial Real Estate Lending Loans
Commercial Real Estate Lending Loans (as of September 30, 2012) Commercial Real Estate Lending Loans by State Commercial Real Estate Lending Loans by Collateral MISSOURI 3% INDIANA HOTEL/MOTEL 4% 2% OHIO OTHER 6% 4% INDUSTRIAL 8% MINNESOTA 15% MULTI-FAMILY 24% WISCONSIN 46% CONSTRUCTION OTHER 18% OF