Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q2 2024 Earnings Presentation
17 slides from Associated Banc-corp's earnings presentation, May 6, 2024
Slide 1: Second Quarter 2024 Investor Presentation
May 6, 2024 Second Quarter 2024 Investor Presentation Associated Banc-Corp Exhibit 99.1
Slide 2: Forward-Looking Statements
1 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
Slide 3: Associated Banc-Corp (NYSE: ASB) Overview
2 Commercial & Business Lending 37% Commercial Real Estate 25% Consumer 38% Corporate & Commercial Specialty 28% Community, Consumer & Business 54% Risk Mgmt & Shared Services 18% With origins dating back to 1861, ASB is the largest bank holding company based in Wisconsin2 Associated Banc-Corp (NYSE
Slide 4: Key Themes in 2024
3 Key Themes in 2024 We’ve positioned the company for success by mitigating risks & prioritizing relationships in our markets ▪ Conservative credit culture refined over the past 15 years ▪ Geographically anchored in stable Midwest markets (no rent-controlled NYC exposure) ▪ Prime/super prime consume
Slide 5: Strong Credit Risk Profile
4 Com'l & Business Lending 37% Other 36% Residential Mortgage 27% 1 All data as of and for the period ended March 31, 2024 unless otherwise noted. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 Property class mix determined by third-party vendor partner mapping of portfolio.
Slide 6: High-Quality Commercial Real Estate Portfolio
5 Multi-Family 38% Retail 9% Office 14% Industrial 25% Other 15% Consumer 38% Com'l & Business Lending 37% CRE 25% Wisconsin 20% Illinois 15% Minnesota 9% Other Midwest2 21% Texas 8% Other 26% 1 All updates as of or for the period ended March 31, 2024 unless otherwise noted. 2 Other Midwest includes
Slide 7: Momentum is Building Across our Company
6 Momentum is Building Across our Company1 We are combining foundational strengths with targeted investments to drive transformational results Satisfied Colleagues Satisfied Customers ▪ Named #1 for Retail Banking Customer Satisfaction in the Upper Midwest Region by J.D. Power2 Balance Sheet Growth
Slide 8: Advancing our Growth Strategy
7 Advancing our Growth Strategy We are building on our momentum through organic investments designed to further enhance our return profile Phase 2 UpdatesPhase 1 Initiatives ▪ Expanded commercial capabilities & added RMs ▪ Modernized digital banking experience ▪ Upgraded product & service offerings
Slide 9: Quarterly Deposit & Funding Trends
8 Average Quarterly Deposits Quarterly Deposit & Funding Trends We grew core customer deposits1 once again in 1Q 2024 while decreasing our reliance on wholesale funding ($ in billions) EoP Funding Change (12/31/2023 to 3/31/2024) ($ in millions) $1.1 $1.5 $1.6 $1.6 $1.7 $0.8 $3.0 $3.4 $3.5 $4.3 $1.6
Slide 10: Quarterly Loan Trends
9 Period end loans grew by $278 million vs. the prior quarter, led by growth in Auto and C&I Quarterly Loan Trends Commercial & Business Lending Commercial Real Estate Consumer Lending $2.4 $2.5 $2.8 $3.0 $3.3 $8.6 $8.7 $8.8 $8.7 $7.9 $7.3 $7.3 $7.3 $7.4 $7.4 $10.6 $10.9 $11.0 $10.8 $10.8 $28.8 $29.
Slide 11: Net Interest Income & Net Interest Margin Trends
10 Net Interest Income & Net Interest Margin Trends We continue to benefit from rising asset yields, while total interest-bearing liability costs were flat vs. 4Q Asset & Liability Yield / Rate Trends (%) Net Interest Income & Net Interest Margin Trends $274 $258 $254 $253 $258 1Q 2023 2Q 2023 3Q 20
Slide 12: Improving our Return Profile Over Time
11 Improving our Return Profile Over Time1 Our efforts to remix the balance sheet & drive toward our 3.00%+ medium-term NIM target are on track Strategy Progress Since 2021 1Q24 Results Growing diversified asset classes to decrease reliance on legacy low-yielding, low-relationship asset classes ▪ Ex
Slide 13: Enhancing the Customer Experience with Digital
12 26% Consumer Checking Household Acquisition 1Q 2023 to 1Q 2024 9% Consumer Checking Household Attrition 1Q 2023 to 1Q 2024 Net Growth Consumer & Business Checking Households 1Q 2024 #1 for Retail Banking Customer Satisfaction in the Upper Midwest Region (J.D. Power)1 We are continuing to make dig
Slide 14: Well-Positioned for 2024+
13 Well-Positioned for 2024+ Leadership in multiple organizational units has been boosted by recent hires, bringing in new ideas and continuing to build upon our already strong foundation Loan growth expected as our investments in customer-facing colleagues and enhanced lending capacity provide a ta
Slide 15: 2024 Outlook
14 1 Adjusted 2023 figures have been provided for noninterest income and noninterest expense to exclude the impact of one time items incurred as a result of a balance sheet repositioning that the Corporation announced in the fourth quarter of 2023 and the FDIC special assessment finalized during the
Slide 16: Appendix
Appendix
Slide 17: Reconciliation & Definitions of Non-GAAP Items
16 Reconciliation & Definitions of Non-GAAP Items 1 The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and