Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (May 2012)
16 slides from Associated Banc-corp's investor presentation, May 21, 2012
Slide 1: Associated Banc-Corp Investor Presentation
Exhibit 99.1 Associated Banc-Corp Investor Presentation Second Quarter 2012 May 21, 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 U.S. bank holding company with $22 billion in assets • Largest bank headquartered in Wisconsin – More than 250 banking offices serving over 150 communities – #1 mortgage originator in Wisconsin¹ – #1 SBA lender in Wisconsin² Operating in Attractive Midwest
Slide 4: Core Organic Loan Growth
Core Organic Loan Growth Total Loans of $14.3 billion at March 31, 2012 Total Loans ($ in billions) Quarterly Net Loan Growth Trend ($ in millions) $16.5 Peak Loans (4Q 2008) $16.3 billion $528 $15.5 +2% QoQ $434 $414 $14.3 $244 $223 $14.5 $14.0 <1% QoQ $13.5 $39 $13.5 $13.1 4Q 2010 1Q 2011 2Q 2011
Slide 5: Disciplined Deposit Pricing and Stable Margins
Disciplined Deposit Pricing and Stable Margins Total Deposits of $15.7 billion at March 31, 2012 Cost of Money Market Deposits Total Deposits ($ balances in billions) + 12% YoY $5.0b $5.0b $5.2b $5.2b $6.2b Net Interest Margin 0.67% 0.63% 0.56% 0.53% 0.43% 4
Slide 6: Strong Capital Profile
Strong Capital Profile Tier 1 Common Equity Ratio Capital Priorities • Funding organic growth – Re-mixing securities run-off into loans increases risk-weighted assets – Sufficient capital to fund contemplated organic growth • Paying a competitive dividend – Increased quarterly dividend to $.05/share
Slide 7: Creating Shareholder Value
Creating Shareholder Value Positioned for Growth; Full-Year 2012 Outlook • Low single-digit YoY growth; • Approximately 3% quarterly including the cost of BSA Loan Growth growth Expenses enhancements & savings from branch consolidations • Net consolidation in branch • Continued run-off of high cost
Slide 8: Why Associated
Why Associated Net Income & ROT1CE Reasons to Invest Net Income Available to Return on Tier 1 • Leading Midwest Bank Operating in Common Common Equity Attractive Markets ($ in millions) • Core Organic Growth Opportunity $45 15.00% $41 • Disciplined Deposit Pricing & Stable Margin $40 $34 • Improving
Slide 9: 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 10: Appendix
Appendix N Associated
Slide 11: Footprint Update
Footprint Update Differentiating Associated in Branch Banking Highlights • Completed the remodel, relocation, or new construction of over 30 branches in 2011 • FY 2011 PPE expense of $77 million includes ongoing investments in franchise Relocated office in Waukesha, WI Janesville, WI Pick ‘N Save in
Slide 12: High Quality Investment Securities Portfolio
High Quality Investment Securities Portfolio Investment Portfolio – March 31, 2012 Market Value Composition – March 31, 2012 Type Bk Value Mkt Value TEY Duration (000’s) (000’s) (%) (Yrs) Govt & Agencies $ 1,012 $ 1,008 0.34 2.35 MBS 1,604,801 1,690,263 4.12 2.35 CMOs 1,853,347 1,883,470 2.75 1.31 M
Slide 13: Continued Improvement in Credit Quality Indicators
Continued Improvement in Credit Quality Indicators ($ in millions) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 Potential problem loans $ 912 $ 699 $ 660 $ 566 $ 480 Nonaccruals $ 488 $ 468 $ 403 $ 357 $ 327 Provision for loan losses $ 31 $ 16 $ 4 $ 1 $ 0 Net charge offs $ 53 $ 45 $ 30 $ 23 $ 22 ALLL/Tot
Slide 14: Consumer Loan Portfolios by Geography
Consumer Loan Portfolios by Geography (as of March 31, 2012) Residential Mortgage Loans by State Home Equity Loans by State Approximately half of home equity portfolio is in first-lien position 13
Slide 15: Commercial & Business Lending Loans
Commercial & Business Lending Loans Commercial & Business Lending portfolio of $4.9 billion, or 34% of Total Loans, at March 31, 2012 Commercial & Business Lending Loans by State Commercial & Business Lending Loans by Industry 14
Slide 16: Commercial Real Estate Lending Loans
Commercial Real Estate Lending Loans Commercial Real Estate Lending portfolio of $3.2 billion, or 23% of Total Loans, at March 31, 2012 Commercial Real Estate Lending Loans by State Commercial Real Estate Lending Loans by Collateral 15
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