Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (May 2013)
20 slides from Associated Banc-corp's investor presentation, May 24, 2013
Slide 1: Second Quarter 2013 Investor Presentation
Exhibit 99.1 Associated Second Quarter Banc-Corp 2013 Investor Presentation
Slide 2: Important Note on Forward-Looking Statements
Forward-Looking Important Statements management’s use “outlook”, contained 1Form of10-K words in note or made and the such similar plans, regarding subsequent forward-looking inStatements asthis “believe”, expressions. objectives, presentation forward-looking SEC“expect”, or filings. statements. For
Slide 3: About Associated Banc-Corp
Leading About Minneapolis Appleton La Madison Milwaukee Operating Rockford •Indianapolis St. >$1bn WI >$500m Unemployment Commercial ASBC 231($ Top $23 238 5150-year average Midwest FDIC Source: in Crosse Louis of &billions) MN billion branches 50, the MN Associated deposits1 Deposits5 market IL Mid
Slide 4: First Quarter 2013 Highlights
2013 First Growing 2012 2% 3% –two to •efficiency T1CE 3shareholder Average ROT1CE Net Quarterly Repurchased Capital Net 3.26% QoQ less Quarter Highlights Shareholder income interest interest ratio days ratios •organic the in loans deposits &Defending of dividend Q3 value expense 2013 of income and
Slide 5: Loan Growth and Portfolio Composition
Loan Average ($ Peak $16.0 Residential $15.4 $15.0 $$15.1 Power Oil $14.0 $13.0 ($145) 1Q 4$12.0 14.6 14.3 balances 2012 &Loans Portfolio +2% $14.9 ($47) Gas General & Home Loans Quarterly 2Q Utilities $11 QoQ Mortgage in (4Q Mortgage 2012 Equity millions) Growth Commercial of2008) Commercial $95 $1
Slide 6: Rebuilding Commercial Lending
Rebuilding Commercial ($ $7.0 $6.0 $5.9 Construction $5.0 $5.5 $4.0 $3.0 $$2.0 $1.0 $0.0 •lower Q1 2012 portfolio 51Q Restored Currently 2.3 in2013 2008. 2009 2010 2011 2012 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 billions) $2.9 to risk provide 2Q •$CRE asset C&I Added above Commercial 2.3 2011 & 20
Slide 7: Building Residential Mortgage
Building Mortgage Residential >15 Home $4.0 <= $3.0 Fixed $2.7 $3.1 $2.0 $1.1 $1.0 $0.0 Net ($ $20 $15 $16 $10 $5 •fixed $0 -$5 62Q Selling in $5 15 2011 -$3 Mortgage ARMs $18 $14 Yr $4.1 $3.8 34% $2.8 62% $1.1 millions) product well Yr Equity year •$17 substantially 3Q Strong $4.3 $3.0 $1.1 Retaini
Slide 8: Reshaping Installment Portfolio and Loan Composition
Reshaping Installment 10% Home 4% 6% Construction Estate, CRE 19% Investor 30% Residential Mortgage HE Commercial mortgages Business 4Q Lending 1Based 2008 portfolio Commercial 1st 8% 30% 14% Equity and Liens on exposure 8% 4Q 35% & 2008 18% Average the Retail 5% 31% 19% & 2009 between 14% refinance
Slide 9: Refinement of Deposit Base and Branch Network
Refinement Increasing Total ($ $16.6 $15.0 •$14.0 $5.2 etc.) $2.0 branch Non-maturity Number 293 315 279 Deposit 2Q 2007 Financial Approximately Consolidated Planned in2Q 291 270 cost billions) 2008 Deposits $17.2 $16.1 2Q network Automation ofdelivery Outlet reformatting Deposit 2Q 2009 Branches of
Slide 10: Managing Yield and Cost: Net Interest Income and Margin
Managing Yield ($ 3.85% 4.00% 3.52% 3.31% $162 $164 $158 $160 $156 $154 Cost 0.65% 0.70% 1.50% $144 $140 1Q Net 9Income in2012 Interest of millions) 3.00% 2.50% $155 2.00% 0.50% 0.00% on 3.80% $168 3.30% 0.62% Interest-bearing Margin Interest-earning 2QIncome Net 2012 3.73% 3.26% 0.51% Interest 3Q W
Slide 11: Capital Management and Priorities
Capital 1) 2) 3) –•4) Repurchased 10 Announced Focus Supporting Increased Continue Branch Focused 60% Repurchased Funding Paying Non-organic Buybacks higher Management remains consolidation aon to Organic quarterly Competitive and business $125 $30 transactions examine dividend $60 Growth on Redempt
Slide 12: 2013 Outlook
2013 Growing Loan by investments pricing Deposit management growth the NIM FHLB •during Fee mortgage 11 Flat Continued Modest continued course Income •Full Growth year-over-year $300 advances Q2 branches inGrowth the improvement banking Year commercial of 2013 based disciplined compression mm Franch
Slide 13: Why Invest in Associated
Why Net Available Common ($ $50 $45 $41 $40 34 $10.1% 9.0% $30 •$26 $20 $10 3.8% $15 Management $0 1Q 2011 12 Improving 9.2% in 9.7% 0.00% 2Q Income 12.50% $45 $42 10.00% 7.50% 7.8% 6.1% 2.50% millions) Associated 2011 Expectations 3Q 9.3% •$46 9.6% Common to 5.00% Long-Term Committed 4Q 2011 Deploy
Slide 14: Our commitment to our colleagues and communities
Associated Banc-Corp commitment to our colleagues will be the andmost the communities admired Midwestern we serve,financial resultingservices in exceptional company, value distinguished for our shareholders. by sound, value-added financial solutions with personal service for our customers, built upo
Slide 15: Appendix
Appendix 4 Associated
Slide 16: Credit Quality Indicators
Continued ($ 1Q Potential Nonaccruals Provision Net ALLL/Total ALLL/Nonaccruals NPA/Assets Nonaccruals/Loans NCOs 15 in2012 charge millions) / Avg 2Q problem for Improvement offs 1.65% Loans loans 2012 $loan 327 $ 22 loans 3Q losses 2.50% $0.61% 1.62% 2.29% 108.93% $318 2012 24$in $$2.26% $480 0.65%
Slide 17: Investment Securities Portfolio
Investment Govt MBS Agencies CMOs CMBS Municipals Corporates Other & ($ Risk Type 0% (000’s) A 20% BAA1, 50% =>100% Not Total TOTAL 16 263,172 AFS inRWA subject RWA –thousands) Bk Mkt & $5,003,805 2,515,022 18 Weighted 1,189,574 298,864 Credit (000’s) BAA2 $$5,003,805 HTM Value RWA 48 $1,003 Value 5
Slide 18: Commercial Loans by Industry
Commercial (as CB&L ($5.9 Rental Services Professional, Scientific, Technical Power Industrial Other 8% 19% Health Social Oil 5% 6% Office Retail Use Real Finance 1Wholesale 10% Based of & Manufacturing 18% Estate 25% billion) March Gas Trade Assistance /& and Care Loans Mixed & on Transportation Ut
Slide 19: Commercial Loans by Geography
(asIncludes Commercial ($5.9 North Texas New 5% 38% 4% In-Footprint1 Illinois 14% Minnesota 115% 18 19% of Wisconsin 11% In Minnesota 42% York billion) March Carolina Footprint1 22% 7%Missouri, Loan &31, ($3.6 Wisconsin Business Other 2013) Portfolios billion) Indiana, Other Loans by Ohio, by Geogra
Slide 20: Consumer Loans by Geography
Consumer (as Residential ($3.5 In-Footprint1 4% Minnesota 9% Illinois 25% 60% Wisconsin Approximately 67% 1portfolio 19Includes of 3% 12% Wisconsin 18% billion) March Illinois 3%isLoan Missouri, Minnesota in Mortgage 31, ($2.1 Other first-lien half Portfolios 2013) billion) of Other Indiana, Loans h
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