Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (May 2023)
22 slides from Associated Banc-corp's investor presentation, May 11, 2023
Slide 1: Second Quarter 2023 Investor Presentation
May 11, 2023 Second Quarter 2023 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 $41B $29B $4B $30B ~4,200 202 Assets Loans Equity Deposits Employees Branches Avg. Loan Composition Avg. Deposit Composition 1 All figures as of or for the quarter ended March
Slide 4: Building on our Strong Foundation
3 Deep Roots in Strong Communities Building on our Strong Foundation ASB is well-positioned to continue executing our people-led, digitally enabled plan in a dynamic environment 1 Strong Foundation 1 2 3 4 5 Low-Cost Core Deposit Franchise Disciplined Expense Management Effective Risk Management Gra
Slide 5: Granular Deposits & Fortified Liquidity
4 Granular Deposits & Fortified Liquidity Uninsured, uncollateralized deposits are only 24% of total deposits; ASB has 103% liquidity coverage1 1 Readily available liquidity coverage based on current levels of readily available (within one business day) funding. See appendix for additional details.
Slide 6: De-Risked Balance Sheet
5 4% 0% 1Q 2017 1Q 2023 7% 1% 1Q 2009 1Q 2023 De-Risked Balance Sheet1 Since 2009, ASB has largely exited several high-risk portfolios while growing historically low-risk asset types 2 $9.8 $9.7 $2.2 $8.6$4.3 $10.9 $15.9 $29.2 1Q 2009 1Q 2023 Land & For-Sale Housing Loans / Total Loans Oil & Gas Loa
Slide 7: Diversified Portfolios and Credit Profile
6 1 Based on outstanding loan balances as of March 31, 2023. Loans by geography excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 FICOs reflect weighted average portfolio scores. 4 Based on annual averages. 2023 reflects YTD figure through 1Q 2
Slide 8: High-Quality Commercial Real Estate Portfolio
7 Multi-Family 35% Retail 10% Office 14% Industrial 23%1-4 Family Construction 6% Hotel / Motel 3% Medical 3% Other 6% Consumer 38% Commercial & Business Lending 37% CRE 25% Wisconsin 22% Illinois 15% Minnesota 10% Other Midwest2 23% Texas 7% Other 24% 1 All updates as of or for the period ended Mar
Slide 9: Capital Ratio Trends and Capital Priorities
8 Capital Ratio Trends (%) 6.97 9.35 9.95 11.33 7.03 9.45 10.05 12.22 TCE Ratio Common Equity Tier 1 Capital Tier 1 Capital Total Capital 1 Tangible common equity / tangible assets. This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financi
Slide 10: Our People-Led, Digitally Enabled Strategy
9 Our People-Led, Digitally Enabled Strategy Our initiatives work together to attract & deepen customer relationships while enhancing our profitability profile Champion of You Brand Strategy Deposits ▪ AB Digital ▪ Account opening ▪ Customer Care support ▪ Card controls ▪ AI-driven tools ▪ Branch su
Slide 11: Enhancing our Lending Capabilities
10 Successful execution of our lending initiatives has provided additional versatility to drive balanced growth ($ in millions) $868 $385 $1,542 $2,249 Core Commercial1 All Other Loans EoP Loan Change (3/31/2021 to 3/31/2023) Asset-Based Lending & Equipment Finance Auto Finance Enhancing our Lending
Slide 12: Relationship-focused deposit growth initiatives
11 Full-year impact expected in 2023 Several relationship-focused initiatives are underway to build on our deposit growth momentum 21% increase in commercial RMs vs. 2021, with a 57% increase in new customer names Sharpened focus on TM, HSA and other deposit- centric businesses October: Launched new
Slide 13: Net Interest Income & Net Interest Margin Trends
12 Net Interest Income & Net Interest Margin Trends ASB continues to benefit from rising rates, but we are taking gradual steps to reduce asset sensitivity Asset & Liability Yield / Rate Trends (%) 4 Managing our Interest Rate Risk $188 $216 $264 $289 $274 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 3.0
Slide 14: Investing in Digital Transformation
13 We are leveraging agile frameworks and customer feedback to more quickly deliver custom digital solutions Investing in Digital Transformation5 Launch of Associated Bank Digital Debit Card Controls AI-led Financial Wellness and Personal Insights Digital Account Opening Upgrades ▪ Cloud-based platf
Slide 15: Proactively Managing Expenses
14 Proactively Managing Expenses Recent actions reflect our commitment to holding expense growth below revenue growth ▪ Given current market dynamics, we’ve identified cost savings that have decreased our full year 2023 expense guidance from 4%-6% growth to approximately 4% growth ▪ We will continue
Slide 16: Months of Effective Execution
15 24 Months of Effective Execution We’ve established a pattern of execution while staying disciplined on credit, expenses & risk management 2021 2022 2023 ▪ Hired Andy Harmening as President and CEO in April ▪ Centralized FP&A; refocused digital and wealth strategies under new leadership ▪ Announce
Slide 17: 2023 Guidance
16 Balance Sheet Management Net Interest Income & Noninterest Income ▪ Total net interest income & noninterest income growth of 8% to 10% ▪ Net interest income (GAAP) growth of 13% to 15% ▪ Noninterest income compression of 8% to 10% Expense Management ▪ Noninterest expense growth of approximately 4
Slide 18: Appendix
Exhibit 99.1 6 Appendix
Slide 19: Liquidity Sources
18 Liquidity Sources As of 4/19/2023, ASB’s total liquidity sources cover 177% of uninsured, uncollateralized deposits Liquidity Sources 3/31/2023 4/19/2023 Federal Reserve Balance $504.2 $503.3 Available FHLB Chicago Capacity $3,453.8 $4,740.6 Available Fed Discount Window Capacity $1,799.5 $1,806.
Slide 20: Total Loans Outstanding
19 Total Loans Outstanding Balances as of March 31, 2023 Well-diversified $29.2 billion loan portfolio ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 3/31/2023 1 % of Total Loans 3/31/2023 1 % of Total Loans C&BL (by NAICS 2 ) CRE (by property type) U
Slide 21: Loan Stratification
20 Multi-Family 35% Retail 10% Office 14% Industrial 23% 1-4 Family Construction 6% Hotel / Motel 3% Medical 3% Other 6% Wisconsin 27% Illinois 23% Minnesota 10% Other Midwest 14% Texas 4%Other 22% Manufacturing & Wholesale Trade 20% Real Estate 17% Power & Utilities 20% Mortgage Warehouse 7% 1 Excl
Slide 22: Reconciliation and Definitions of Non-GAAP Items
21 Reconciliation and Definitions of Non-GAAP Items ($ in millions) 1 The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financ
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