Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Credit Suisse 2013 Financial Services Forum
19 slides from Associated Banc-corp's conference presentation, Feb 12, 2013
Slide 1: Associated Banc-Corp Investor Presentation
Exhibit 99.1 Associated Banc-Corp Investor Presentation Credit Suisse 2013 Financial Services Forum February 13, 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 Minneapolis Wausau Green Bay • 238 branches serving approximately one million customers Appleton • 150-year history in Wisconsin La
Slide 4: Executing on Strategic Plan
Executing on Strategic Plan 2011 – A Year of 2012 – Execution of 2013 – Growing the Transition Growth Initiatives Franchise & Creating Long-Term Shareholder Value • Repaid TARP • FY 2012 earnings up • Continued focus on 51% organic growth • OCC MOU terminated opportunities • Loan balances up 10% • B
Slide 5: 2012 Full Year Recap
2012 Full Year Recap Execution of Growth Initiatives & Delivering Shareholder Value • FY 2012 earnings of $174 million or $1.00/share Net Income & – Compared to $115 million in FY 2011 or $0.66/share ROT1CE • FY 2012 ROT1CE of 9.5% compared to 6.7% for FY 2011 Loan Growth • Total loans up $1.4 billi
Slide 6: Loan Portfolio Growth and Composition
Loan Portfolio Growth and Composition Total Loans of $15.4 billion at December 31, 2012 Total Loans ($ in billions) 4Q 2012 Net Loan Growth of $445 million ($ balances in millions) Peak Loans (4Q 2008) $16.3 billion General Commercial Loans $174 +3% QoQ $16.0 Residential Mortgage $172 $15.4 Commerci
Slide 7: Rebuilding Commercial & Business Lending
Rebuilding Commercial & Business Lending Commercial & Business Lending Loans CB&L Loans by Industry ($ in billions) CB&L Loans by State • Restored C&I lending efforts over the past two years • Competitive disruptions in our markets continue to provide opportunity for growth into 2013 • Manufacturing
Slide 8: Refocused Commercial Real Estate Lending
Refocused Commercial Real Estate Lending Commercial Real Estate Lending Loans CRE Loans by Industry ($ in billions) Hotel / Motel Construction Other 4% $6.0 6% CRE Industrial $5.0 7% $4.0 $3.6 Multi-Family 25% $3.0 Construction 18% $2.0 Office / Mixed Use $1.0 Retail 22% 18% $0.0 CRE Loans by State
Slide 9: Strong Mortgage Banking Business
Strong Mortgage Banking Business Residential Mortgage Loan Portfolio • Opened new channels Hybrid ARMs (3/5/7) ($ in billions) and expanded into 15-year fixed additional markets $3.2 $3.4 $3.0 $3.1 $3.1 • Retaining primarily $3.0 $2.7 $2.8 hybrid ARMs on $2.5 $2.1 balance sheet as well $2.0 as ~$1.3
Slide 10: Refinement of Branch Strategy
Refinement of Branch Strategy Increasing Deposit Base while Optimizing Traditional Retail Network Total Deposits & Customer Funding • Deposits & customer funding have grown by $2.6 billion, ($ in billions) or 17% since 2007 $17.2 $17.5 $17.6 • At the same time, the total branch count has been $16.6
Slide 11: Managing the Cost of Funds & Margin
Managing the Cost of Funds & Margin Yield on Interest-earning Assets Average Deposits ($ balances in billions) $16.7 3.85% $15.6 3.81% 3.80% 3.73% $15.1 3.70% $14.9 $15.0 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Cost of Interest-bearing Liabilities Net Interest
Slide 12: Capital Management Priorities
Capital Management Priorities 1) Funding Organic Growth • Focus remains on funding organic loan growth across the footprint • Supporting business growth initiatives and ongoing capital investments 2) Paying a Competitive Dividend • Increased quarterly dividend to $0.08/share in fourth quarter – 60%
Slide 13: 2013 Full Year Outlook
2013 Full Year Outlook Growing the Franchise & Creating Long-Term Shareholder Value • Flat year-over-year Loan Growth • High single digit FY loan growth, Expenses • Reduced regulatory costs offset by with seasonally low 1Q 2013 continued franchise investments • Continued disciplined deposit • Contin
Slide 14: Why Associated
Why Associated Net Income Available to Common & ROT1CE Reasons to Invest Net Income • Leading Midwest Bank Operating in Available to Return on Tier 1 Common Common Equity Attractive Markets ($ in millions) $50 12.50% • Core Organic Growth Opportunity $45 $45 • Disciplined Deposit Pricing & Stable Ma
Slide 15: Vision statement
Associated Banc-Corp will be the most admired Midwestern financial services company, distinguished by sound, value-added financial solutions with personal service for our customers, built upon a strong commitment to our colleagues and the communities we serve, resulting in exceptional value for our
Slide 16: Appendix
Appendix oN Associated
Slide 17: Continued Improvement in Credit Quality Indicators
Continued Improvement in Credit Quality Indicators ($ in millions) 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Potential problem loans $ 566 $ 480 $ 410 $ 404 $ 361 Nonaccruals $ 357 $ 327 $ 318 $ 278 $ 253 Provision for loan losses $ 1 $ 0 $ 0 $ 0 $ 3 Net charge offs $ 23 $ 22 $ 24 $ 18 $ 21 ALLL/Total
Slide 18: High Quality Investment Securities Portfolio
High Quality Investment Securities Portfolio Investment Portfolio – December 31, 2012 Market Value Composition – December 31, 2012 Type Bk Value Mkt Value TEY Duration Corporates & (000’s) (000’s) (%) (Yrs) CMBS Other Govt & 4% 2% Agencies $ 1,003 $ 1,004 0.30 1.63 MBS 2,311,426 2,382,823 3.09 2.48
Slide 19: Consumer Loan Portfolios by Geography
Consumer Loan Portfolios by Geography (as of December 31, 2012) Residential Mortgage Loans by State Home Equity Loans by State ($3.4 billion) ($2.2 billion) 1 Other In-Footprint Other 2% 4% 2% Minnesota Minnesota 11% 11% Illinois 16% Wisconsin 51% Illinois Wisconsin 32% 71% Approximately half of hom
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