Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Barclays Global Financial Services Conference 2023
21 slides from Associated Banc-corp's conference presentation, Sep 11, 2023
Slide 1: Barclays Global Financial Services Conference Investor Presentation
September 11, 2023 Barclays Global Financial Services Conference 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: Franchise Profile
2 Commercial & Business Lending 37% Commercial Real Estate 25% Consumer 38% Corporate & Commercial Specialty 28% Community, Consumer & Business 58% Risk Mgmt & Shared Services 14% Associated Banc-Corp (NYSE: ASB) is the largest bank holding company based in Wisconsin2 Franchise Profile1 $41B Assets
Slide 4: Strong Credit Risk Profile
3 Strong Credit Risk Profile We’ve significantly de-risked our portfolio since 2009 Geographically anchored in stable Midwest markets Diversified CRE portfolio with limited urban office exposure Replaced high-risk portfolios with lower-risk asset classes Prime/super prime consumer portfolios
Slide 5: Strong Credit Risk Profile
4 Com'l & Business Lending 37% Other 33% Residential Mortgage 29% 1 All data as of and for the period ended June 30, 2023 unless otherwise noted. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 From inception on September 30, 2021 through the period ended June 30, 2023. WI 27%
Slide 6: Building on our Strong Foundation
5 Building on our Strong Foundation Our initiatives work together to attract & deepen customer relationships while enhancing our profitability profile ▪ RM Growth ▪ ABL & Equipment Finance ▪ Auto Finance ▪ Exited TPO Mortgage ▪ Commercial/Treasury Mgmt ▪ Mass Affluent ▪ Product Enhancements ▪ Digita
Slide 7: Loan & Deposit Outlook
6 Loan & Deposit Outlook1 We are reaffirming our loan & deposit growth guidance for the second half of 2023 Total Loan Growth in 2H 2023 Core Customer Deposit2 Growth in 2H 2023 2% - 4% 2% 1 Projections are on an end of period basis. 2 This is a non-GAAP financial measure. See appendix for a reconci
Slide 8: Enhanced our Lending Capabilities
7 Successful execution of our lending initiatives has provided additional versatility to drive balanced growth Enhanced our Lending Capabilities Progress Updates 1 Increasing our RM ranks by 35% from March 2021 to December 2022 has enabled us to continue growing high-quality commercial loans into 20
Slide 9: Expanded our Deposit Capabilities
8 Despite recent industry-wide volatility, our efforts to attract & deepen customer relationships remain on track Expanded our Deposit Capabilities Modernized Digital Banking Experience Upgraded Product & Service Offerings 2Q 2023 Net Growth1 in both Consumer and Business Checking Households 11% Con
Slide 10: Invested in Digital Transformation
9 We’re leveraging agile frameworks & customer feedback to more quickly deliver custom digital solutions Invested in Digital Transformation Launch of Associated Bank Digital Debit Card Controls AI-led Financial Wellness and Personal Insights Digital Account Opening Upgrades ▪ Cloud-based platform wi
Slide 11: Proactively Managing our Expenses
10 Proactively Managing our Expenses While we’ve invested in our growth initiatives, we’ve also remained committed to holding expenses in check ▪ Given current market dynamics, we’ve identified cost savings that have decreased our full-year 2023 expense guidance from 4%-6% growth to 3%-4% growth ▪ I
Slide 12: Capital Ratio Trends
11 Capital Ratio Trends (%) 6.97 9.35 9.95 11.33 6.94 9.48 10.07 12.22 TCE Ratio Common Equity Tier 1 Capital Tier 1 Capital Total Capital 1 Tangible common equity / tangible assets. This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financ
Slide 13: Months of Effective Execution
12 27 Months of Effective Execution We’ve developed an ability to execute while staying disciplined on credit, expenses & risk management 2021 2022 2023 ▪ Hired Andy Harmening as President and CEO in April ▪ September 2021: Launched strategic initiatives ▪ Centralized FP&A; refocused digital and wea
Slide 14: 2023 Full-Year Outlook
13 Balance Sheet Management Net Interest Income & Noninterest Income ▪ Total net interest income & noninterest income growth of 6% to 8% ▪ Net interest income (GAAP) growth of 10% to 12% ▪ Noninterest income compression of 8% to 10% Expense Management ▪ Noninterest expense growth of 3% to 4% ▪ Effec
Slide 15: Appendix
Appendix
Slide 16: De-Risked Balance Sheet
15 4% 0% 2Q 2016 2Q 2023 8% 1% 2Q 2008 2Q 2023 De-Risked Balance Sheet1 ASB has largely exited several high-risk portfolios while growing historically low-risk asset types $9.5 $10.0 $2.1 $8.7$4.5 $11.1 $16.1 $29.8 2Q 2008 2Q 2023 Land & For-Sale Housing Loans / Total Loans Oil & Gas Loans / Total L
Slide 17: High-Quality Commercial Real Estate Portfolio
16 Wisconsin 21% Illinois 15% Minnesota 9% Other Midwest2 22% Texas 7% Other 25% Multi-Family 35% Retail 9% Office 14% Industrial 24%1-4 Family Construction 6% Warehouse 4% Hotel / Motel 3% Other 6% Consumer 38% Commercial & Business Lending 37% CRE 25% 1 All updates as of or for the period ended Ju
Slide 18: Stable, Granular Deposit Portfolio
17 Stable, Granular Deposit Portfolio Uninsured, uncollateralized deposits were only 21% of total deposits as of 6/30/2023 1 Liquidity coverage based on current levels of readily available (within one business day) funding. See slide 18 for additional details. 26% 27% 26% 24% 21% 74% 73% 74% 76% 79%
Slide 19: Liquidity Sources
18 Liquidity Sources As of 6/30/2023, ASB’s total liquidity sources covered 179% of uninsured, uncollateralized deposits Liquidity Sources 3/31/2023 6/30/2023 Federal Reserve Balance $504.2 $179.0 Available FHLB Chicago Capacity $3,453.8 $5,148.4 Available Fed Discount Window Capacity $1,799.5 $1,63
Slide 20: Total Loans Outstanding
19 Total Loans Outstanding Balances as of June 30, 2023 ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 6/30/20231 % of Total Loans 6/30/20231 % of Total Loans C&BL (by NAICS2) CRE (by property type) Utilities 2,324$ 7.8% Multi-Family 2,554$ 8.6% Manuf
Slide 21: Reconciliation and Definitions of Non-GAAP Items
20 Reconciliation and 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 an
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