Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (September 2024)
21 slides from Associated Banc-corp's investor presentation, Sep 3, 2024
Slide 1: Third Quarter 2024 Investor Presentation
September 3, 2024 Third 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)
2 Commercial & Business Lending 37% Commercial Real Estate 25% Consumer 38% Corporate & Commercial Specialty 26% Community, Consumer & Business 56% Risk Mgmt & Shared Services 17% With origins dating back to 1861, ASB is the largest bank holding company based in Wisconsin2 Associated Banc-Corp (NYSE
Slide 4: Key Themes in 2024
3 Key Themes in 2024 We’ve positioned ASB for success by advancing our growth strategy while remaining disciplined on credit ▪ Conservative credit culture refined over the past 15 years ▪ Geographically anchored in stable Midwest markets (no rent-controlled NYC exposure) ▪ Maintaining prime/super pr
Slide 5: Disciplined Credit Approach
Disciplined Credit Approach
Slide 6: Diversified Credit Risk Profile
5 Com'l & Business Lending 37% Other 36% Residential Mortgage 26% 1 All data as of and for the period ended June 30, 2024 unless otherwise noted. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 Property class mix determined by third-party vendor partner mapping of portfolio. 4
Slide 7: Credit Quality Trends
6 Net Charge Offs and Provision Total Delinquent Loans Credit Quality Trends $2 $2 $22 $2 $2$40 $47 $62 $48 $35 $42 $50 $84 $51 $37 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 2Q 2024 credit quality remained solid with delinquencies, criticized loans, & NCOs down vs. prior quarter ($ in millions) Accrui
Slide 8: High-Quality Commercial Real Estate Portfolio
7 Multi-Family 39% Retail 9% Office 14% Industrial 23% Other 15% Consumer 38% Com'l & Business Lending 37% CRE 25% Wisconsin 20% Illinois 16% Minnesota 9% Other Midwest2 21% Texas 8% Other 26% 1 All updates as of or for the period ended June 30, 2024 unless otherwise noted. 2 Other Midwest includes
Slide 9: Advancing our Growth Strategy
Advancing our Growth Strategy
Slide 10: Phase 1 Strategic Plan: Foundational to Growth
9 Launched in 2021, Phase 1 of our strategic plan established ASB’s ability to execute Phase 1 Strategic Plan: Foundational to Growth Upgraded Product & Service Offerings Launched Mass Affluent Strategy Modernized Digital Banking Experience Introduced “Champion of You” Brand Strategy Enhanced Lendin
Slide 11: Advancing our Growth Strategy in Phase 2
10 Advancing our Growth Strategy in Phase 2 Phase 2 is designed to accelerate our momentum through an infusion of talent in key areas & targeted initiatives 1 Incremental balance growth expected above our standard run rate, which is impacted by market conditions. $750M $2.5B 3% Cumulative Incrementa
Slide 12: Phases 1 + 2: Consumer & Small Business Banking
11 Phases 1 + 2: Consumer & Small Business Banking Our efforts to upgrade the customer experience are largely completed, with expected results on track 2022 2023 2024 ▪ Highest quarterly net consumer checking household growth in over a decade ▪ Highest annual net promoter score4 since internal track
Slide 13: Phases 1 + 2: Commercial Banking
12 Phases 1 + 2: Commercial Banking We’ve bolstered our commercial leadership team & continue to invest by adding talented RMs in key markets 2021-2022 2023 2024 ▪ Launched Asset-Based Lending & Equipment Finance verticals ▪ Shifted to balanced scorecard incentive structure, with an emphasis on whol
Slide 14: Improving our Return Profile Over Time
13 Improving our Return Profile Over Time1 Our efforts to remix the balance sheet & drive toward improved profitability are on track Strategy Progress Since 2021 1H24 Results Growing diversified asset classes to decrease reliance on legacy low-yielding, low-relationship asset classes ▪ Expanded Comm
Slide 15: Interest Rate Sensitivity
14 We’ve taken proactive steps to reduce our asset sensitivity and protect NII in a falling rate environment Estimated NII Sensitivity Profile (%) Interest Rate Sensitivity1 10.8 4.0 3.2 5.4 1.9 1.6 -5.0 -1.2 -1.0 -1.8 -2.1 2Q 2022 2Q 2023 2Q 2024 Up 200 bps Up 100 bps Down 100 bps Down 200 bps (12-
Slide 16: Capital Profile
15 Capital Ratios (%) 7.08 9.43 10.02 12.08 7.18 9.68 10.27 12.34 TCE Ratio CET1 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 financial measures. Our capital rat
Slide 17: Well-Positioned for 2024-2025
16 Well-Positioned for 2024-2025 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
Slide 18: 2024 Guidance
17 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 booked during the fo
Slide 19: Appendix
Appendix
Slide 20: Reconciliation & Definitions of Non-GAAP Items
19 Reconciliation & 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 and
Slide 21: Reconciliation & Definitions of Non-GAAP Items
20 Reconciliation & Definitions of Non-GAAP Items 1 The mortgage portfolio sale and investments sold that are classified as one time items are the result of a balance sheet repositioning that the Corporation announced in the fourth quarter of 2023. One Time Item Noninterest Expense Reconciliation ($
Associated Banc-Corp — Investor Presentation (September 2024) on 6ix