Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (September 2012)
21 slides from Associated Banc-corp's investor presentation, Sep 4, 2012
Slide 1: Associated Banc-Corp Investor Presentation
Exhibit 99.1 Associated Banc-Corp Investor Presentation Third Quarter 2012 September 4, 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 • $22 billion in assets; largest bank headquartered in Wisconsin – Over 250 banking offices serving over 150 communities 1 Minneapolis – #1 mortgage originator in Wisconsin Wausau Green Bay 2 – #1 SBA lender in Wi
Slide 4: Core Regional Banking Business Model
Core Regional Banking Business Model Differentiation from Large-Cap, Diversified Financial Institutions • Upper Midwest regional focus on • Current capital levels are well servicing U.S. customers in excess of “well-capitalized” Nominal operating in domestic markets Basel III regulatory benchmarks E
Slide 5: Core Organic Loan Growth
Core Organic Loan Growth Total Loans of $14.7 billion at June 30, 2012 Total Loans ($ in billions) Quarterly Net Loan Growth Trend ($ in millions) Loan Mix – 2Q 2012 4
Slide 6: Growing Commercial & Business Lending
Growing Commercial & Business Lending Commercial & Business Lending Loans Highlights ($ in billions) • Q2 loan production continued to show strength • Recent hires continue to gain traction in driving new relationships to Associated • Launched enhanced Treasury Management online portal in February •
Slide 7: Growing Commercial Real Estate Lending
Growing Commercial Real Estate Lending Commercial Real Estate Lending Loans Highlights ($ in billions) • Growing multi-family $4.0 lending portfolio • Continuing strong growth across the footprint $3.5 $3.4 $3.2 • ~90% of CRE loans are in $3.1 core footprint $3.0 $3.0 $2.9 CRE Loans by Collateral (2
Slide 8: Growing Private Client and Institutional Services
Growing Private Client and Institutional Services (Formerly Wealth Management) Highlights Cross-Line Partnerships between • Focusing on core disciplines, business development, Private Client & Institutional Services and and cross-line partnership with Commercial Banking Commercial Banking & Insuranc
Slide 9: Expanding Retail Banking Relationships
Expanding Retail Banking Relationships Packers Banking Highlights • Strengthening the basics – Strengthening our focus on our premier banking customers – Expanding the scope and reach of our market-leading mortgage franchise • Leveraging our relationship with the Green Bay Packers & Aaron Rodgers Re
Slide 10: 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 ~30 branches in 1H2012 Example relocated office Example small-format teller line
Slide 11: Disciplined Deposit Pricing and Stable Margins
Disciplined Deposit Pricing and Stable Margins Average Total Deposits of $15.1 billion at June 30, 2012 Yield on Interest-earning Assets Average Deposits ($ balances in billions) Cost of Interest-bearing Liabilities Net Interest Margin 10
Slide 12: Value-added Approach to Capital Management
Value-added Approach to Capital Management Funding Organic Growth • Focus remains on funding organic loan growth across the footprint • Supporting business growth initiatives Paying a Competitive Dividend • Increased quarterly dividend to $0.05/share in 1Q12 • Committed to revisiting the dividend po
Slide 13: Second Half 2012 Outlook
nd 2 Half 2012 Outlook Positioned for Growth; Creating Long-Term Shareholder Value • Approximately 4-6% core loan growth in 2H 2012 including • Modest growth in core fee- commercial and business lending, based revenues with Loan Growth CRE, & residential mortgage Fee Income mortgage banking income •
Slide 14: Why Associated
Why Associated Net Income Available to Common & ROT1CE Reasons to Invest Net Income • Leading Midwest Bank Operating in Available to Return on Tier 1 Common Common Equity Attractive Markets ($ in millions) • Core Organic Growth Opportunity • Disciplined Deposit Pricing & Stable Margin • Improving Cr
Slide 15: Vision statement: most admired Midwestern financial services company
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 16: Appendix
Appendix oN Associated
Slide 17: Continued Improvement in Credit Quality Indicators
Continued Improvement in Credit Quality Indicators ($ in millions) 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 Potential problem loans $ 699 $ 660 $ 566 $ 480 $ 410 Nonaccruals $ 468 $ 403 $ 357 $ 327 $ 318 Provision for loan losses $ 16 $ 4 $ 1 $ 0 $ 0 Net charge offs $ 45 $ 30 $ 23 $ 22 $ 24 ALLL/Tota
Slide 18: High Quality Investment Securities Portfolio
High Quality Investment Securities Portfolio Investment Portfolio – June 30, 2012 Market Value Composition – June 30, 2012 Type Bk Value Mkt Value TEY Duration (000’s) (000’s) (%) (Yrs) Govt & Agencies $ 1,011 $ 1,011 0.33 2.10 MBS 1,753,910 1,838,909 3.80 2.14 CMOs 1,586,621 1,611,471 2.76 0.63 Mun
Slide 19: Consumer Loan Portfolios by Geography
Consumer Loan Portfolios by Geography (as of June 30, 2012) Residential Mortgage Loans by State Home Equity Loans by State MISSOURI 4% OTHER 3% OTHER 2% MINNESOTA 9% MINNESOTA 11% ILLINOIS 16% ILLINOIS 31% WISCONSIN 53% WISCONSIN 72% Approximately half of home equity portfolio is in first-lien posit
Slide 20: Commercial & Business Lending Loans
Commercial & Business Lending Loans Commercial & Business Lending portfolio of $5.3 billion, or 36% of Total Loans, at June 30, 2012 Commercial & Business Lending Loans by State Commercial & Business Lending Loans by Industry Power & Utilities, 3% Rental & Leasing Transportation & TEXAS 3% Services,
Slide 21: Commercial Real Estate Lending Loans
Commercial Real Estate Lending Loans Commercial Real Estate Lending portfolio of $3.4 billion, or 23% of Total Loans, at June 30, 2012 Commercial Real Estate Lending Loans by State Commercial Real Estate Lending Loans by Collateral MISSOURI INDIANA HOTEL/MOTEL OHIO 3% 2% 4% 4% OTHER INDUSTRIAL 7% 7%
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