Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Barclays Capital Global Financial Services Conference September 2011
18 slides from Associated Banc-corp's conference presentation, Sep 14, 2011
Slide 1: Barclays Capital Global Financial Services Conference September 2011
Barclays Capital Global Financial Services Conference September 2011
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 plans, objectives, or goals for futur
Slide 3: Leading Midwest Banking Franchise
Leading Midwest Banking Franchise • Largest bank headquartered in Wisconsin — Top 50 bank holding company in the U.S. MN • Approximately 270* banking offices primarily WI covering Green Bay, Milwaukee, Madison, Hudson Wausau Chicago, and Minneapolis markets Green Bay Minneapolis Eau Claire Appleton
Slide 4: Recent Developments
Recent Developments • OCC Memorandum of Understanding terminated —Bank-level capital and dividend constraints removed • All TARP repayment approvals received; expected repayment late September • Exiting TARP in a “shareholder Relative Shareholder Friendliness Scale No Common Stock $65 mm $130 mm ~$6
Slide 5: ASBC Vision Statement
ASBC Vision Statement Associated Banc-Corp 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 exce
Slide 6: Execution of Strategic Plan Well Under Way
Execution of Strategic Plan Well Under Way • Aggressively reduced legacy problem credits Management Team • Realigned credit policies for profitable future originations Has Driven Results • Improved core profitability by restructuring existing business portfolio • The OCC Memorandum of Understanding
Slide 7: Management Team — Driving Results
Management Team — Driving Results Key Recent Hires (2010 —Present) • Oliver Buechse, Chief Strategy Officer Reduced problem credits • John Utz, Head of Specialized Industries • Donna Smith, Head of Regional Commercial Banking • Christopher Del Moral-Niles, Deputy Chief Financial Officer • Breck Hans
Slide 8: Well Positioned for Growth in the Mid-West
Well Positioned for Growth in the Mid-West July 2011 Jobs (Unemployment rate, Wisconsin vs. National Unemployment Milwaukee NAPM Blue Collar Index 10.5% 70 change YOY) 9.5% 8.5% 60 • MN: 7.2% 7.5% 50 6.5% 40 • WI: 7.8% 5.5% 4.5% 30 • IL: 9.5% 20 • USA 9.1% National Wisconsin Output Midwest Economy I
Slide 9: Positioned for Growth in Commercial Markets
Positioned for Growth in Commercial Markets • Focus on C&I growth in key markets — New C&I production and line draws of more than $500 million for Commercial 2Q11, partially offset by ~$300 million of run-off and pay downs • Portfolio of specialty niches with dedicated resources — Contributed more t
Slide 10: Positioned for Growth in Wealth and Retail Markets
Positioned for Growth in Wealth and Retail Markets • Focusing on core Wealth disciplines, including cross-selling loans Wealth through the private bank • Pursuing of internal collaboration opportunities • Deepening the bench strength with the addition of new talent • Strengthening the basics — Stren
Slide 11: Our New In-Store Branch Look
Our New In-Store Branch Look Opened July 15, 2011
Slide 12: Positioned for Growth in Key Loan Categories
Positioned for Growth in Key Loan Categories Loans Outstanding ($ in millions) % Change 4% $14,000 $12,655 $13,090 $12,602 $12,617 $12,372 $590 $750 $695 $606 $12,000 $721 $2,577 $2,594 $2,455 $2,523 $10,000 $2,457 $1,843 $2,692 $1,899 $2,346 $2,536 $8,000 $6,000 $3,052 $3,064 $3,256 $3,110 $3,029 $
Slide 13: Improving Credit Quality Trends
Improving Credit Quality Trends Nonaccruals Past Due Loans ($ in millions) ($ in millions) $1,000 $976 $160% Change $149 (24%) $900 $132% Change $140 (52%) $34 $124 $800 $728 $120 $120 $113 $212 $700 $106 $136 $41 $32 $100 $31 $600 $574 $41 $25 $488 $500 $184 $139 $468 $80 $8 $280 $15 $33 $125 $13 $
Slide 14: Improving Credit Metrics
Improving Credit Metrics Loan Charge Offs Coverage Ratios ($ in millions) $120 ALLL / Nonaccruals ALLL / Loans $105 $110 $108 5.0% 100% $16 $100 $20 $16 $5 $6 4.5% 80% $80 $36 $60 $46 $61 $53 4.0% 60% $45 $40 $29 $32 $15 3.5% 40% $4 $14 $20 $37 $29 $20 $12 $6 $8 $9 3.0% 20% $0 2Q 2010 3Q 2010 4Q 201
Slide 15: Credit Trends and Loan Growth Driving Profitability
Credit Trends and Loan Growth Driving Profitability Net Interest Income and Margin Net Income and ROAA ($ in millions) ($ in millions) $165 3.5% $160 $40 1.00% $34 $154 $154 $154 3.4% $30 0.80% $151 $150 3.32% 0.64% $23 0.60% 3.3% $20 3.29% $14 $14 3.22% 0.40% 3.2% 0.43% $10 $135 0.25% 0.20% 3.13% 0
Slide 16: Strong and Low Cost Funding Profile
Strong and Low Cost Funding Profile Total Deposits & Customer Funding ($ in millions) $20,000 $18,000 $17,154 $17,015 Reduced $16,000 $15,789 $15,960 $16,144 Whole- $2,412 $1,141 $3,270 $1,587 $1,261 sale $1,148 $14,000 $887 Funding $3,172 $2,905 $2,609 $3,253 $2,717 $12,000 $10,000 $8,000 Stable $8
Slide 17: Strong Capital Position
Strong Capital Position Operating Well in Excess of Regulatory Capital Requirements — Post TARP —ASBC will continue to be in excess Repaid half of TARP Pro Forma for September repayment of of well capitalized preferred with $300M remaining TARP preferred with $132M requirements debt issuance of debt
Slide 18: Summary: Poised for Revenue Growth and Earnings Expansion
Summary Poised for Revenue Growth and Earnings Expansion • Strong, stable Midwestern franchise; well positioned for growth • Four consecutive quarters of profitability —Turned the corner on loan growth; Focused on fee-generating businesses • Solid long-term strategy to reduce and manage risk —Improv
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