Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (July 2013)
21 slides from Associated Banc-corp's investor presentation, Jul 31, 2013
Slide 1: Associated Banc-Corp Investor Presentation Third Quarter 2013
Exhibit 99.1 ASSOCIATED BANC-CORP INVESTOR PRESENTATION THIRD QUARTER 2013
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: Leading Midwest Banking Franchise
LEADING MIDWEST BANKING FRANCHISE About Associated • Top 50, publicly traded, U.S. bank holding company • $24 billion in assets; largest bank headquartered in Wisconsin • 239 branches serving approximately one million customers • 150-year history in Wisconsin Operating in Attractive Midwest Markets
Slide 4: Vision Statement
VISION STATEMENT ASSOCIATED will be the most admired Midwestern financial services company, distinguished by sound, value-added financial solutions with personal service for our customers, built upon a strong commitment to our colleagues and the communities we serve, resulting in exceptional value f
Slide 5: 2013 Second Quarter Highlights and Outlook
2013 SECOND QUARTER HIGHLIGHTS AND OUTLOOK Second Quarter 2013 Highlights: Outlook – Growing the • Net income of $47 mm Franchise & Creating Long- Term Shareholder Value • ROT1CE of 9.9%, compared to 9.3% for Q2 2012 • Continued focus on organic growth opportunities • Average loans of $15.7 bn, up 2
Slide 6: Loan Portfolio Growth and Composition
LOAN PORTFOLIO GROWTH AND COMPOSITION Average Loans of $15.7 billion for Second Quarter 2013 Average Quarterly Loans ($ in billions) 2Q 2013 Average Net Loan Growth of $280 million ($ balances in millions) Loan Mix – 2Q 2013 (Average) 5
Slide 7: Rebuilding Commercial & Business Lending
REBUILDING COMMERCIAL & BUSINESS LENDING Commercial & Business Lending Loans Commercial Real Estate Lending Loans ($ in billions) ($ in billions) • Restored C&I lending efforts over the past two years • Refocused CRE efforts to emphasize in-footprint & lower risk asset classes • Currently above prev
Slide 8: Strong Mortgage Banking Business
STRONG MORTGAGE BANKING BUSINESS Mortgage and HE First Liens Loan Portfolio 2Q Portfolio Mix ($4.4 bn) ($ in billions) Net Mortgage Banking Revenues & Originations Sold • Associated remains the #1 ($ in millions) mortgage lender in Wisconsin (by units & dollar volume) • Retaining primarily hybrid AR
Slide 9: Reshaping the Loan Portfolio Composition
1 RESHAPING THE LOAN PORTFOLIO COMPOSITION Installment Home Equity • Goal: A balanced portfolio between Commercial & Business, Construction Commercial Real Estate, and Retail CRE • Reduced Construction Investor exposure by ~ 70% from 2008 Residential • Home Equity run off as Mortgage & more consumer
Slide 10: Branch Strategy
BRANCH STRATEGY Refine Footprint Rationalize Footprint • Footprint Project –60% • Consolidated 24% of complete. Began in 2011. branches since 2007. Reinvigorate Model Retain Relationships • Leverage technology solutions for • Grow deposits service. Lower Cost Branch Concepts Deposits & Customer Fund
Slide 11: Pursuing Efficiency Gains
PURSUING EFFICIENCY GAINS Real Estate Initiatives: • Actions to optimize our real estate holdings and capacity • 2013 – Consolidated Corporate offices in Green Bay (6 buildings) and Chicago (3 buildings) Project Pathway Benefits: Back Office Initiatives: Time to Workflow Audit Trail • Implementing t
Slide 12: Growing Net Interest Income While Margin Compresses
GROWING NET INTEREST INCOME WHILE MARGIN COMPRESSES Yield on Interest-earning Assets Net Interest Income & Net Interest Margin ($ in millions) Cost of Interest-bearing Liabilities 11
Slide 13: Capital Management Priorities
CAPITAL MANAGEMENT PRIORITIES 2012 2013 Priority Funding Organic • Fund Loan Growth and other Capital Investments Highest Growth Paying a • Increased quarterly • Paid $0.08 /share in Q1 Competitive dividend to $0.08/share in and Q2 Dividend Q4 2012 (60% increase from $0.05/ share) Non-organic Growth
Slide 14: 2013 Second Half Outlook
2013 SECOND HALF OUTLOOK Growing the Franchise & Creating Long-Term Shareholder Value • Quarterly loan growth of 1 – 2%. • Flat year-over-year Loan Trends • Continued disciplined loan Expenses • Reduced regulatory costs offset by pricing continued franchise investments • Continued disciplined deposi
Slide 15: Why Associated
WHY ASSOCIATED Net Income Available to Common & ROT1CE Reasons to Invest Net Income • Leading Midwest Bank Operating in Available to Return on Tier 1 Attractive Markets Common Common Equity ($ in millions) • Core Organic Growth Opportunity • Disciplined Loan and Deposit Pricing & Stable Margin • Com
Slide 16: Appendix
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Slide 17: Continued Improvement in Credit Quality Indicators
CONTINUED IMPROVEMENT IN CREDIT QUALITY INDICATORS ($ in millions) 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Potential problem loans $ 410 $ 404 $ 361 $ 344 $ 310 Nonaccruals $ 318 $ 278 $ 253 $ 225 $ 217 Provision for loan losses $ 0 $ 0 $ 3 $ 4 $ 4 Net charge offs $ 24 $ 18 $ 21 $ 14 $ 14 ALLL/Total
Slide 18: Investment Securities Portfolio
INVESTMENT SECURITIES PORTFOLIO Investment Portfolio – June 30, 2013 Market Value Composition – June 30, 2013 Type Bk Value Mkt Value TEY Duration (000’s) (000’s) (%) (Yrs) Corporates Agency CMBS 2% Govt & $ 1,002 $ 1,004 0.30 1.13 9% All Other Agencies MBS 2,536,056 2,533,037 2.74 3.84 Municipals 1
Slide 19: Commercial Loans by Industry
COMMERCIAL LOANS BY INDUSTRY AS OF JUNE 30, 2013 CB&L Loans by Industry 1 CRE Loans by Industry ($6.0 billion) ($3.8 billion) 1 Based on NAICS codes 18
Slide 20: Commercial Loan Portfolios by Geography
COMMERCIAL LOAN PORTFOLIOS BY GEOGRAPHY AS OF JUNE 30, 2013 Commercial & Business Loans by State CRE Loans by State ($6.0 billion) ($3.8 billion) 1 Includes Missouri, Indiana, Ohio, Michigan, & Iowa 19
Slide 21: Consumer Loan Portfolios by Geography
CONSUMER LOAN PORTFOLIOS BY GEOGRAPHY AS OF JUNE 30, 2013 Residential Mortgage Loans by State Home Equity Loans by State ($3.5 billion) ($2.0 billion) Approximately half of home equity portfolio is in first-lien position 1 Includes Missouri, Indiana, Ohio, Michigan, & Iowa 20
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