Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2023 Earnings Presentation
18 slides from Associated Banc-corp's earnings presentation, Aug 7, 2023
Slide 1: Third Quarter 2023 Investor Presentation
August 7, 2023 Third 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: Largest bank holding company based in Wisconsin
2 Associated Banc-Corp (NYSE: ASB) is the largest bank holding company based in Wisconsin2 Franchise Profile1 Key Highlights $41B $30B $4B $32B ~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 June
Slide 4: Building on our Strong Foundation
3 Building on our Strong Foundation Our initiatives work together to attract & deepen customer relationships while enhancing our profitability profile Deep Roots in Strong Communities De-Risked, Diversified Balance Sheet Disciplined Expense Management Effective Risk Management ▪ Commercial RM Growth
Slide 5: Strong Credit Risk Profile
4 Strong Credit Risk Profile We’ve significantly de-risked our portfolio since 2009 Geographically anchored in stable Midwest markets Diversified CRE portfolio with limited urban office exposure Replaced high-risk portfolios with lower-risk asset classes Prime/super prime consumer portfolios
Slide 6: Successful execution of our lending initiatives
5 Successful execution of our lending initiatives has provided additional versatility to drive balanced growth Enhancing our Lending Capabilities Progress Updates 1 Increasing our RM ranks by 35% from March 2021 to December 2022 has enabled us to continue growing high-quality commercial loans into 2
Slide 7: Efforts to attract & deepen customer relationships remain on track
6 Despite recent industry-wide volatility, our efforts to attract & deepen customer relationships remain on track Expanding our Deposit Capabilities Modernized Digital Banking Experience Upgraded Product & Service Offerings 2Q 2023 Net Growth1 in both Consumer and Business Checking Households 11% Co
Slide 8: Investing in Digital Transformation
7 We’re leveraging agile frameworks & customer feedback to more quickly deliver custom digital solutions Investing in Digital Transformation Launch of Associated Bank Digital Debit Card Controls AI-led Financial Wellness and Personal Insights Digital Account Opening Upgrades ▪ Cloud-based platform w
Slide 9: Proactively Managing our Expenses
8 Proactively Managing our Expenses While we’ve invested in our growth initiatives, we’ve also remained committed to holding expenses in check ▪ Given current market dynamics, we’ve identified cost savings that have decreased our full year 2023 expense guidance from 4%-6% growth to 3%-4% growth ▪ We
Slide 10: Maintaining a Stable Capital Profile
9 Capital Ratio Trends (%) 6.97 9.35 9.95 11.33 6.94 9.48 10.07 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 11: Months of Effective Execution
10 27 Months of Effective Execution We’ve developed an ability to execute 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 ▪ Announced p
Slide 12: 2023 Full-Year Outlook
11 Balance Sheet Management Net Interest Income & Noninterest Income ▪ Total net interest income & noninterest income growth of 6% to 8% ▪ Net interest income (GAAP) growth of 10% to 12% ▪ Noninterest income compression of 8% to 10% Expense Management ▪ Noninterest expense growth of 3% to 4% ▪ Effec
Slide 13: Appendix
Appendix
Slide 14: De-Risked Balance Sheet
13 4% 0% 2Q 2016 2Q 2023 8% 1% 2Q 2008 2Q 2023 De-Risked Balance Sheet1 ASB has largely exited several high-risk portfolios while growing historically low-risk asset types $9.5 $10.0 $2.1 $8.7$4.5 $11.1 $16.1 $29.8 2Q 2008 2Q 2023 Land & For-Sale Housing Loans / Total Loans Oil & Gas Loans / Total L
Slide 15: Diversified Loan Portfolio
14 C&BL 37% CRE 25% Consumer 38% 1 Based on outstanding loan balances as of June 30, 2023. Loans by geography excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 FICOs reflect weighted average portfolio scores. 4 Based on annual averages. 2023 re
Slide 16: High-Quality Commercial Real Estate Portfolio
15 Wisconsin 21% Illinois 15% Minnesota 9% Other Midwest2 22% Texas 7% Other 25% Multi-Family 35% Retail 9% Office 14% Industrial 24%1-4 Family Construction 6% Warehouse 4% Hotel / Motel 3% Other 6% Consumer 38% Commercial & Business Lending 37% CRE 25% 1 All updates as of or for the period ended Ju
Slide 17: Total Loans Outstanding
16 Total Loans Outstanding Balances as of June 30, 2023 ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 6/30/2023 1 % of Total Loans 6/30/2023 1 % of Total Loans C&BL (by NAICS 2 ) CRE (by property type) Utilities 2,324$ 7.8% Multi-Family 2,554$ 8.6% M
Slide 18: Reconciliation and Definitions of Non-GAAP Items
17 Reconciliation and Definitions of Non-GAAP Items 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 financial condition an