Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2024 Earnings Presentation
19 slides from Associated Banc-corp's earnings presentation, Feb 14, 2024
Slide 1: First Quarter 2024 Investor Presentation
February 14, 2024 First Quarter 2024 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: Associated Banc-Corp (NYSE: ASB) at a glance
2 Commercial & Business Lending 36% Commercial Real Estate 25% Consumer 39% Corporate & Commercial Specialty 28% Community, Consumer & Business 57% Risk Mgmt & Shared Services 16% With origins dating back to 1861, ASB is the largest bank holding company based in Wisconsin2 Associated Banc-Corp (NYSE
Slide 4: Key Themes Entering 2024
3 Key Themes Entering 2024 We’ve positioned the company for success by mitigating risks & prioritizing relationships in our markets ▪ Replaced legacy high-risk portfolios with lower- risk assets over the past 15 years ▪ Geographically anchored in stable Midwest markets (no rent-controlled NYC exposu
Slide 5: Strong credit risk profile and diversified loan portfolio
4 Com'l & Business Lending 37% Other 36% Residential Mortgage 27% 1 All data as of and for the period ended December 31, 2023 unless otherwise noted. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 From inception on September 30, 2021 through the period ended December 31, 2023
Slide 6: High-Quality Commercial Real Estate Portfolio
5 Wisconsin 21% Illinois 15% Minnesota 9% Other Midwest2 22% Texas 8% Other 26% Multi-Family 37% Retail 9% Office 14% Industrial 25% 1-4 Family Construction 4% Warehouse 3% Hotel / Motel 3% Other 6% Consumer 38% Commercial & Business Lending 37% CRE 25% 1 All updates as of or for the period ended De
Slide 7: Strategic Plan Phase 1: Track Record of Execution
6 Strategic Plan Phase 1: Track Record of Execution Launched in 2021, Phase 1 of our plan was designed to attract & deepen relationships, enhance profitability Enhanced our Lending Capabilities Expanded our Deposit Capabilities Invested in Digital Transformation ▪ Diversify our consumer portfolio by
Slide 8: Relationship-Focused Deposit Growth
7 $109 $1,323 $1,432 $527 $310 $837 3Q 2023 4Q 2023 3Q + 4Q Combined Our efforts to attract & deepen relationships have driven both consumer & commercial deposit growth Relationship-Focused Deposit Growth Modernized Digital Banking Experience Upgraded Product & Service Offerings Launched Mass Afflue
Slide 9: Advancing our Growth Strategy
8 Advancing our Growth Strategy Announced in 4Q 2023, the next phase of our plan builds on our foundation & positions us for future success Diligent Expense Control Balance Sheet Repositioning Reinvesting for Organic Growth 1 3 Repositioned our balance sheet in 4Q 2023 to accelerate the financial im
Slide 10: Progress on Organic Initiatives
9 Progress on Organic Initiatives Our Phase 2 initiatives remain on track, positioning us to grow our customer base & enhance our profitability People Products Process & Technology ▪ Plan to add 26+ commercial & business RMs across all markets by 2025, with 12 already hired ▪ Plan to train 15-20 des
Slide 11: Key Leadership Hires in 2023-2024
10 Key Leadership Hires in 2023-2024 Our strategic plan has resonated in our Midwestern footprint, helping us attract top talent in key areas Neil Riegelman SVP, Commercial Banking Segment Leader Most recently Managing Director & Team Lead for commercial banking in Wisconsin for BMO Harris Bank Over
Slide 12: Relationship-focused strategies to generate incremental deposits
11 We plan to generate incremental deposits through relationship-focused strategies that grow our customer base Expanding commercial RM base and presence in metro markets Upstreaming customers into Mass Affluent and Private Wealth 8 new product enhancements across all LOBs Our relationship-focused i
Slide 13: Enhancing the Customer Experience with Digital Investments
12 19% Consumer Checking Household Acquisition 4Q 2022 to 4Q 2023 7% Consumer Checking Household Attrition 4Q 2022 to 4Q 2023 90% Complete Satisfaction with Branch Channel1 2023 4-Year High in Digital Satisfaction, led by Mobile1 2023 We are continuing to make digital-forward investments to deliver
Slide 14: Expected Benefits of Organic Plan
13 Our organic plan builds on our momentum while adhering to the foundational strengths that got us here Expected Benefits of Organic Plan Transitions our Balance Sheet into Higher Return Businesses Creates an Earnings Tailwind by Consistently Growing our Customer Base Maintains our Strong Foundatio
Slide 15: Well-Positioned for 2024+
14 Well-Positioned for 2024+ Leadership in multiple organizational units has been boosted by recent hires, bringing in new ideas and continuing to build upon our already strong foundation Loan growth expected as our investments in customer-facing colleagues and enhanced lending capacity provide a ta
Slide 16: FY 2024 Outlook
15 1 Adjusted 2023 figures have been provided for noninterest income and noninterest expense to exclude the impact of one time items incurred as a result of a balance sheet repositioning that the Corporation announced in the fourth quarter of 2023 and the FDIC special assessment finalized during the
Slide 17: Appendix
Appendix
Slide 18: Balance Sheet Repositioning Summary
17 Balance Sheet Repositioning Summary Estimated 11/9/2023 Actual Total Assets Sold $1.8B $1.68B Total Loans Sold $1.0B in ARMs $969M in ARMs Wtd. Avg. Yield 3.72% Wtd. Avg. Yield 3.81% Total Securities Sold (Book Value) $0.8B in AFS Securities $780M in AFS Securities Wtd. Avg. Yield 2.60% Wtd. Avg.
Slide 19: Reconciliation and Definitions of Non-GAAP Items
18 Reconciliation and Definitions of Non-GAAP Items Tangible Common Equity and Tangible Assets Reconciliation1 ($ in millions) 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Common equity $3,821 $3,932 $3,929 $3,934 $3,980 Goodwill and other intangible assets, net (1,154) (1,152) (1,150) (1,148) (1,145) Ta