Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (May 2022)
21 slides from Associated Banc-corp's investor presentation, May 23, 2022
Slide 1: Second Quarter Investor Presentation
Updated May 23, 2022 Second 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: ASB Investment Thesis
2 ASB Investment Thesis Strong Foundation Deep-rooted franchise built on a strong foundation with emerging momentum Drivers of Emerging Momentum Deep Roots in Strong Communities Low-Cost Deposit Franchise2 Effective Risk Management Disciplined Expense Management 1 U.S. Bureau of Labor Statistics, St
Slide 4: A Transformative Year for Associated Banc-Corp
3 A Transformative Year for Associated Banc-Corp President & CEO Andy Harmening joined ASB on April 28, 2021 May-July 2021 Met with hundreds of stakeholders during a 100 Days of Listening Tour September 2021 Announced new Digital Forward, Growth Focused strategic direction for ASB 3Q-4Q 2021 Launche
Slide 5: Driving Higher Returns: Target Mid-Teens ROATCE
4 ▪ Expanding our Lending Capabilities: New auto finance, equipment finance & asset-based lending verticals ▪ Growing our Core Businesses: Adding new relationship managers and deepening client penetration ▪ Investing in our Digital Transformation: Planned $50 million investment over the next five ye
Slide 6: Emerging Commercial Growth Dynamics
5 Mortgage Warehouse + PPP $1.9 $1.9 $1.8 $1.8 $1.8 $1.6 $1.7 $1.9 $2.1 $2.2 $3.5 $3.6 $3.8 $4.0 $4.0 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 34.5 33.5 34.3 34.6 35.2 36.8 36.7 38.3 39.3 43.5 42.8 43.0 41.2 40.2 42.2 42.8 42.5 42.9 Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Actual Historical Avg.
Slide 7: Our Strategic Initiatives Remain on Track
6 $13,706 $14,303 $14,422 $16,100 $17,000 $1,414 $1,247 $1,013 $15,120 $15,550 $15,434 3Q 2021 4Q 2021 1Q 2022 YE2022 Target YE2023 Target New Asset-Based Lending + Equipment Finance2 Core Commercial1 Auto Finance Our Strategic Initiatives Remain on Track $7 $143 $498 $1,450 $2,500 3Q 2021 4Q 2021 1
Slide 8: Credit Foundation
7 Credit Foundation Strong Markets1 Core Credit Discipline4Diversified Portfolios2 1 U.S. Bureau of Labor Statistics, State Employment and Unemployment, seasonally adjusted, March 2022. 2 Based on outstanding loan balances as of March 31, 2022. Loans by geography excludes Other Consumer portfolio. 3
Slide 9: Funding and Margin Trends
8 Funding and Margin Trends $3.1 $2.1 $1.9 $1.4 $0.9 $2.0 $2.8 $3.1 $2.3 $1.5 $1.3 $6.3 $7.3 $7.0 $6.5 $6.9 $7.0 $1.5 $1.9 $2.4 $3.3 $4.1 $4.5 $4.0 $4.8 $5.1 $5.6 $6.1 $6.7 $5.0 $5.2 $5.2 $6.9 $8.1 $8.3 $21.9 $24.1 $24.7 $26.0 $27.7 $28.6 2017 2018 2019 2020 2021 1Q 2022 ($ in billions) Average Depo
Slide 10: Core Funding Evolution
9 Core Funding Evolution $1.1 $0.9 $0.7 $0.6 $3.4 $2.2 $1.7 $0.8 $3.1 $4.5 $3.2 $1.5 $5.3 $5.5 $6.1 $8.3 $3.0 $4.5 $5.8 $6.4 $1.4 $1.9 $3.0 $4.7 $6.0 $7.1 $6.4 $7.0 $1.6 $2.7 $2.6 $1.3 1Q 2016 1Q 2018 1Q 2020 1Q 2022 31% 26% 19% 10% $25.0 $30.6 $29.2 $29.6 Since 2016, ASB has structurally reduced wh
Slide 11: A Solid Digital Foundation
10 377 398 401 1Q 2020 1Q 2021 1Q 2022 Customer-Originated Digital Mortgage Applications 26% 31% 34% 1Q 2020 1Q 2021 1Q 2022 A Solid Digital Foundation Digital Engagement Associated’s customer base is digitally engaged and receptive to self-service options Active Digital Banking Users (in thousands)
Slide 12: Our 2022 Digital Forward Roadmap
11 Our 2022 Digital Forward Roadmap ▪ Complete transformation of our mobile and web experience for 400K+ retail customers ▪ Launched pilot in 1Q 2022; on track for expected Summer 2022 rollout ▪ Fully integrated customer insights and personalization ▪ Streamline and connect new consumer and small bu
Slide 13: April Initiative Updates
12 April Initiative Updates1 Expanding our Lending Capabilities Growing our Core Businesses Investing in our Digital Transformation Initiative Highlights 4/30/2022 Update ▪ Launched internal pilot of new NCR D3 digital platform in 1Q 2022 ▪ Modernization efforts focusing on “hollowing out” our core
Slide 14: Updated Guidance
13 Balance Sheet Management1 ▪ Auto finance loan growth of ~$1.3B ▪ Total commercial2 loan growth of $850M to $1.1B ▪ Target investments/total assets ratio of ~20% ▪ We expect to maintain wholesale funding in the range of 10% to 15% of total funding Net Interest Income & Noninterest Income ▪ Net int
Slide 15: Appendix
Appendix
Slide 16: Strong Capital and Liquidity Profile
15 Loan / Deposit Ratio 95.0% 86.4% 1Q 2020 1Q 2022 $5.3 $6.9 $0.7 $0.5$6.0 $7.4 1Q 2020 1Q 2022 Securities Cash ($ in billions) Strong Capital and Liquidity Profile Capital Priorities EoP Securities + Cash Target CET1 at or above 9.5% Common Dividend 40-50% Organic Growth 50%-60% Inorganic Growth 0
Slide 17: Total Loans Outstanding
16 Total Loans Outstanding Balances as of March 31, 2022 Well-diversified $25 billion loan portfolio ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 3/31/2022 1 % of Total Loans 3/31/2022 1 % of Total Loans C&BL (by NAICS 2 ) CRE (by property type) Man
Slide 18: Loan Stratification
17 Wisconsin 29% Illinois 23% Minnesota 10% Other Midwest 14% Texas 4% Other 20% Manufacturing & Wholesale Trade 20% Real Estate 16% Power & Utilities 20% Mortgage Warehouse 11% 1 Excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. Wind 43% Natural
Slide 19: 2021-2023 Community Commitment Plan
18 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 20: Environmental, Social and Governance Highlights
19 Environmental, Social and Governance Highlights 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 Board1 is diverse in terms of ethnici
Slide 21: Colleague Experience and Engagement
20 Colleague Experience and Engagement1 “Inclusive,” Flexible” and “Diverse” are the top three words colleagues use to describe ASB’s culture 1 All updates as of or for the period ended December 31, 2021. Branch / On-Site 39% Hybrid 51% Remote 10% Flexible Work Environment ▪ 85% of colleagues partic
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