Slide 1: Associated Banc-Corp Investor Presentation Third Quarter 2016
Associated Banc-Corp Investor Presentation THIRD QUARTER 2016 Exhibit 99.1
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: Associated Bank Franchise
Serving over 1 million customers in over 100 communities across 8 states1 Headquartered in Green Bay, Wisconsin 216 branches Second Quarter 2016 $29 billion assets and largest bank headquartered in Wisconsin $1 billion revenue (last twelve months) ASSOCIATED BANK FRANCHISE 2 1 – Retail banking locat
Slide 4: Attractive Midwest Markets
Eight of the top 10 cities by highest VantageScore4 are in the upper Midwest Associated Bank has seen declining and low consumer losses ATTRACTIVE MIDWEST MARKETS 3.8% 4.0% 4.2% 4.5% 4.6% 4.8% 5.0% 6.2% MN IA WI MO MI IN OH IL Midwest holds ~30% of all U.S. manufacturing jobs2 1 – U.S. Census Bureau
Slide 5: Evolving Delivery Model
4 EVOLVING DELIVERY MODEL LESS BRANCH CENTRIC; MORE MOBILE AND ENHANCED 24/7 ACCESS Mobile banking is accessed by nearly 30% of our consumer deposit customers Mobile deposits are our most cost effective deposit-taking platform Deposits ~50% from 2007 Branches ~30% from 2007 Completed extensive branc
Slide 6: Organic Balance Sheet Growth
$1.9 $1.6 $1.5 $1.5 $1.4 $4.4 $4.6 $4.8 $5.4 $6.1 $3.3 $3.7 $4.0 $4.1 $4.7 $5.0 $5.9 $6.5 $7.2 $7.5 2Q 2012 2Q 2013 2Q 2014 2Q 2015 2Q 2016 $15.7 $14.6 $16.6 $18.2 $19.6 5 ORGANIC BALANCE SHEET GROWTH (AVERAGE BALANCES, $ IN BILLIONS) $2.3 $1.9 $1.6 $1.6 $1.5 $1.1 $1.2 $1.3 $1.4 $1.4 $2.1 $2.9 $2.9
Slide 7: Diverse Business Lines
Community, Consumer, and Business (47% of Average Loans) Corporate and Commercial Specialty (52% of Average Loans) Consumer and Commercial Banking Branch Banking Commercial Banking Residential Lending Payments and Direct Channels Community Markets Eau Claire, WI La Crosse, WI Central Wisconsin Rockf
Slide 8: Balanced Revenue Streams
Insurance commissions 27% Service charges on deposit accounts 20% Card-based and other nondeposit fees 15% Trust service fees 14% Mortgage banking, net 5% Brokerage and annuity commissions 5% Capital market fees, net 5% Other2 9% Commercial and business lending 29% Commercial real estate lending 20%
Slide 9: Disciplined Credit Approach
DISCIPLINED CREDIT APPROACH INTERNAL PORTFOLIO MANAGEMENT LEADS TO PURPOSEFUL DIVERSIFICATION 8 Asset Class Geography Industry / Property 30-40% 38% 30-40% 24% 30-40% 38% Target 2Q 2016 average Commercial & Business CRE Consumer Focused on growth within our Upper Midwest footprint, and select nati
Slide 10: Credit Quality Trends
CREDIT QUALITY TRENDS ($ IN MILLIONS) $140 $180 $178 $251 $281 $60 $84 $124 $150 $176 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Oil and Gas $149 $134 $158 $157 $154 $11 $13 $20 $129 $129 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Oil and Gas Potential Problem Loans Nonaccrual Loans $9 $8 $8 $4 $2 $13 $19
Slide 11: Oil and Gas Lending Update
Houston based 9 staff, including 2 in-house engineers 90 years of combined experience $26, 3.4% $29, 3.8% $42, 5.6% $49, 6.5% $42, 5.6% OIL AND GAS LENDING UPDATE Spring redeterminations: Complete; the reviews have largely resulted in borrowing base decreases New business: New loan funding
Slide 12: Expense Control
Branch Closures & Staffing Initiatives Enhanced Automation Operational Efficiencies Technology Investments Compliance Branch Upgrades Marketing Investments Talent Acquisition 72.6% 69.2% $67 $75 $80 $84 $40 $237 $212 $210 $209 $104 $381 $397 $390 $405 $204 2012 2013 2014 2015 YTD 201
Slide 13: Prudent Capital Management
PRUDENT CAPITAL MANAGEMENT 12 Funding Organic Growth Paying a Competitive Dividend Non-organic Growth Opportunities Share Buybacks and Redemptions 173 167 161 151 150 2Q 2012 2Q 2013 2Q 2014 2Q 2015 2Q 2016 Common Shares Outstanding Diluted (average, in millions) $0.05 $0.08 $0.09 $0.10 $0.11 2Q 201
Slide 14: Second Quarter Recap
SECOND QUARTER RECAP Net income available to common equity of $47 million, or $0.31 per common share 13 Enhanced Customer Experience Record levels of ATM and mobile deposits 50% increase in mobile deposits from the year ago quarter Organic Balance Sheet Growth Average loans were up $719 million from
Slide 15: 2016 Outlook
2016 OUTLOOK 14 High single digit annual average loan growth Maintain Loan to Deposit ratio under 100% In the absence of Federal Reserve action to raise rates, NIM expected to be approximately flat Approximately flat to prior year NONINTEREST EXPENSE Approximately flat to prior year Cont
Slide 16: Delivering Long Term Value
Earnings Per Share 16% 5 Year CAGR Dividends 62% 5 Year CAGR Annualized Shareholder Return 8.4% Dec 1, 2009 – Jun 30, 2016 Return on average common equity Tier 1 9.2% YTD 2016 DELIVERING LONG TERM VALUE 15 6.7% 9.2% FY 2011 YTD 2016 $0.01 $0.11 2Q 2011 2Q 2016 Earnings Per Share Dividends $0.15 $0.3
Slide 17: Appendix
APPENDIX
Slide 18: Net Interest Income and Margin Trends
$165 $170 $169 $171 $176 $1 $1 $2 $1 $1 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Interest Recoveries, Prepayment Fees, & Deferred Fees Net Interest Income Net of Interest Recoveries, Prepayment Fees, & Deferred Fees 2.83% 2.82% 2.82% 2.81% 2.81% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $
Slide 19: Noninterest Income Trends
$10 $7 $8 $4 $4 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 NONINTEREST INCOME TRENDS ($ IN MILLIONS) Mortgage Banking (net) Income $66 $64 $63 $65 $67 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Fee-based Revenue 1 – Fee-based Revenue = A non-GAAP financial measure, is the sum of trust service fees, servic
Slide 20: Noninterest Expense Trends
$103 $101 $100 $101 $102 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Personnel $22 $21 $20 $20 $20 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) Technology and Equipment 1 – FTE = Average full time equivalent employee Please refer to the Form 8-K filed July 21, 2016:
Slide 21: Loan Portfolios by State, Industry and Property Type
C&BL by State $7.6 billion CRE by State $4.8 billion Home Equity by State $1.0 billion C&BL by Industry $7.6 billion CRE by Property Type1 $4.8 billion Residential Mortgage by State $6.0 billion Wisconsin 36% Illinois 40% Minnesota 14% Other Midwest2 9% Other 1% Manufacturing 18% Finance & Insurance
Slide 22: Oil and Gas Portfolio by Geography
Permian 19% East Texas North Louisiana Arkansas 17% Mid-Continent (primarily OK & KS) 17% South Texas & Eagle Ford 12% Rockies 10% Marcellus Utica Appalachia 8% Gulf Coast 6% Gulf Shallow 5% Other (Onshore Lower 48) 5% Bakken 1% OIL AND GAS PORTFOLIO BY GEOGRAPHY JUNE 2016 PERIOD END ESTIMATED EXPOS
Slide 23: High Quality Securities
53% 34% 46% 66% 1% <1% June 2015 June 2016 HIGH QUALITY SECURITIES ($ IN BILLIONS) 22 $4.52 $4.93 $5.76 $5.94 $6.08 3.13% 2.63% 2.63% 2.49% 2.41% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $- $0.01 .$0 2 . .3$0 .4 .$0 5 . .6$0 .7 .$0 8 .9 $0. .1 0$ .1 1.$ 2 .1 .3$ .41 .$ 5 .1 6 .$ .71 $ .8 .1 9$ .2 0 .$ .1
Slide 24: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 23 Efficiency Ratio Reconciliation 2012 2013 2014 2015 YTD 2016 Federal Reserve efficiency ratio 72.62% 70.97% 70.26% 69.90% 69.18% Fully tax-equivalent adjustment (1.62) (1.46) (1.36) (1.42) (1.36) Other intangible amortization (0.44) (0.42) (0.38) (