Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Barclays Global Financial Services Conference 2021
19 slides from Associated Banc-corp's conference presentation, Sep 9, 2021
Slide 1: Associated Banc-Corp Strategic Update
Associated Banc-Corp Strategic Update September 9, 2021
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: New Leadership, New Priorities
New Leadership, New Priorities We’ve used the last 120 days to formulate a new growth focused and digital forward vision for Associated Growth Focused Digital Forward ▪ Capitalizing on the opportunities we ▪ Serving our customers where and see in our markets with investments when they need us via on
Slide 4: Foundational Franchise Strengths
Foundational Franchise Strengths Deep Roots Low-Cost Effective Exceptional Strong In Our Deposit Risk Customer Markets Communities Franchise Management Service ▪ Large Markets: ▪ 4,000 Dedicated ▪ Franchise Value: ▪ Low Credit Risk: ▪ Award-Winning: Midwest footprint Colleagues: Average cost of YTD
Slide 5: How We Build on our Strong Foundation
How We Build on our Strong Foundation Our strategic vision is expected to drive Positive Operating Leverage and improved ROATCE ▪ Diversifying our consumer portfolio by growing Auto Finance Expanding our Lending ▪ Broadening current Asset-Based Lending capabilities Capabilities ▪ Launching Equipment
Slide 6: What We've Done so Far
What We’ve Done so Far We have advanced our vision with concrete actions to date ▪ Hired 40+ colleagues to drive our new Auto Finance initiative Expanding our Lending ▪ Bolstered existing Asset-Based Lending capability with a new leader Capabilities ▪ Initiated a new Equipment Finance vertical launc
Slide 7: Expanding our Lending Capabilities
Expanding our Lending Capabilities 2021 Progress 2022-23 Outlook ▪ Over 550 dealers signed up as of ▪ Expect over $1 billion in loan Rolling out Auto September 1st balances by the end of 2022 Finance ▪ Origination and servicing systems ▪ Targeted portfolio net yields of ~3% in place ▪ Projecting to
Slide 8: Expanding our Lending Capabilities
Expanding our Lending Capabilities Our expansion into higher yielding assets is expected to drive both incremental revenue and margins ▪ In addition to expected core loan growth in our existing C&I and CRE portfolios, we expect 2022-2023 Projected Loan Outstandings1 our initiatives will add over $2.
Slide 9: Growing our Core Businesses
Growing our Core Businesses 2021 Progress 2022-23 Outlook ▪ Several pending offers outstanding ▪ Expect to add 10+ commercial Accelerating Core to round out our growing teams in relationship managers across the Middle Market Growth Milwaukee and Chicago with footprint by year-end 2022, with a additi
Slide 10: Digital Transformation: Already Underway
Digital Transformation: Already Underway We have begun shifting our investment priorities to ensure Associated has a digital forward focus Leveraged our Accelerated our Digital Aligned Internal Strong Digital Experience Capabilities Foundation1 ▪ 64% retail digital adoption ▪ Centralized leadership
Slide 11: Near-Term Digital Rollout Expected Timeline
Near-Term Digital Rollout Expected Timeline 1Q 2022 2Q 2022 Digital Banking Transformation Digital Sales Transformation ▪ Complete transformation of our ▪ Streamline and connect new mobile and web experience for 400K+ consumer and small business sales retail customers and account opening solutions ▪
Slide 12: Transforming Spend: A Shift to Digital
Transforming Spend: A Shift to Digital The expected ~$10 million of annual run-rate savings from the initiatives highlighted below should fund the incremental costs of our proposed ~$50 million of digital investments over the next five years 2021 Progress Expense Impacts ▪ Consolidating eight branch
Slide 13: Disciplined Expense Management
Disciplined Expense Management 2021 Noninterest Expense Impact ▪ Before the impact of our new initiatives, we expected total 2021 noninterest expense would be Noninterest Expense approximately $695 million to $700 Outlook as of July 2021 $695 - $700 million million New Initiatives Costs ~$5 million
Slide 14: Generating Positive & Increasing Operating Leverage
Generating Positive & Increasing Operating Leverage Our revenue strategies are expected to leverage our people and technology while driving efficiency Estimated Net Interest Income + Estimated Noninterest Expense2 Noninterest Income1 CAGR ~8% CAGR ~3.5% 2021 2022 2023 2021 2022 2023 Net Interest Inc
Slide 15: Optimizing Capital Proactively
Optimizing Capital Proactively Our priorities are to fund organic growth and pay a competitive dividend, while optimizing our capital structure 2021 Progress 2022-23 Outlook Dividends ▪ Increased common dividend by ▪ Targeting a 2022 payout ratio of 40%- 11% from $0.18 to $0.20 in 3Q 50% 2021 ▪ Futu
Slide 16: Positioning for Improved Financial Performance
Positioning for Improved Financial Performance Our growth focused and digital forward vision is expected to drive higher shareholder returns ASB 3+ Year Operating Targets Expanding our 2.75% Net Lending Interest Higher Capabilities Margin Returns 7.50% TCE Ratio1 Proactively Growing our 55%-60% Expa
Slide 17: Associated: Capitalizing on our Momentum
Associated: Capitalizing on our Momentum Growth Focused Digital Forward Higher Returns 16
Slide 18: Appendix: Updated 2021 Full-Year Outlook
Appendix: Updated 2021 Full-Year Outlook
Slide 19: Updated 2021 Full-Year Outlook
Updated 2021 Full-Year Outlook Previous Guidance (7/22/2021) Updated Guidance ▪ Commercial loan growth, excl. PPP, of 2-4% ▪ Lower end of the range Balance Sheet ▪ Full-year margin of 2.45% to 2.55% ▪ Lower end of the range Management ▪ Target investments / total assets ratio of ▪ Increasing range t
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