Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2023 Earnings Presentation
18 slides from Associated Banc-corp's earnings presentation, Feb 13, 2023
Slide 1: First Quarter 2023 Investor Presentation
February 13, 2023 First Quarter 2023 Investor Presentation Associated Banc-Corp
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: Largest bank holding company based in Wisconsin
2 Associated Banc-Corp (NYSE: ASB) is the largest bank holding company based in Wisconsin2 Franchise Profile1 Key Highlights $39B $29B $4B $30B ~4,200 202 Assets Loans Equity Deposits Employees Branches Commercial & Business Lending 37% Commercial Real Estate 25% Consumer 38% Corporate & Commercial
Slide 4: Building on our Strong Foundation
3 Building on our Strong Foundation Our people-led, digitally enabled plan builds on our foundation while maintaining flexibility and discipline 1 Diversified & De-Risked Loan Portfolio 2 Expanding Lending & Deposit Capabilities 4 Engaging Key Stakeholders 3 Investing in Digital Transformation ▪ Dis
Slide 5: Diversified & De-Risked Loan Portfolio
4 4% 0% 4Q 2016 4Q 2022 7% 1% 4Q 2008 4Q 2022 Diversified & De-Risked Loan Portfolio1 Since 2008, ASB has largely exited several high-risk portfolios while growing historically low-risk asset types 1 $9.5 $9.5 $2.2 $8.5$4.5 $10.8 $16.3 $28.8 4Q 2008 4Q 2022 Land & For-Sale Housing Loans / Total Loan
Slide 6: Diversified & De-Risked Loan Portfolio credit profile
5 1 Based on outstanding loan balances as of December 31, 2022. Loans by geography excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 FICOs reflect weighted average portfolio scores. 4 Based on annual averages. 5 From inception on September 30,
Slide 7: Structural changes to remix both sides of our balance sheet
6 We’re making structural changes to remix both sides of our balance sheet & drive durable margin over time Liabilities Balance Sheet Optimization2 Assets We have more levers in place to optimize our returns in the loan book, enabling us to decrease our reliance on lower-yielding or non-relationship
Slide 8: Lending initiatives provide versatility to drive balanced growth
7 Successful execution of our lending initiatives has provided additional versatility to drive balanced growth ($ in millions) $966 $281 $1,239 $2,089 Core Commercial1 All Other Loans EoP Loan Change (12/31/2021 to 12/31/2022) Asset-Based Lending & Equipment Finance Auto Finance Enhancing our Lendin
Slide 9: Deposit growth and funding profile shift
8 2022 Cumulative Int-Bearing Deposit Beta1 We’ve grown deposits for 11 straight years and have taken steps to reduce our reliance on higher-beta funding ($ in billions) Customer Deposits Network Deposits, Brokered Deposits & Other Wholesale Funding Funding Trends (2016 vs. 2022) 1 Beta calculated a
Slide 10: Relationship-focused initiatives to build deposit growth momentum
9 Full-year impact expected in 2023 Several relationship-focused initiatives are underway to build on our deposit growth momentum 21% increase in commercial RMs vs. 2021, with a 57% increase in new customer names Sharpened focus on TM, HSA and other deposit- centric businesses October: Launched new
Slide 11: Well-positioned for higher rates while managing downside risk
10 While ASB remains well-positioned to benefit from higher rates, we continue to manage the downside risk Estimated NII Sensitivity Profile Δ in interest rates 2Q 22 3Q 22 4Q 22 +200 bps ramp over 12 months 10.8% 9.2% 7.8% +100 bps ramp over 12 months 5.4% 4.6% 3.9% -100 bps ramp over 12 months (5.
Slide 12: Investing in Digital Transformation
11 We are leveraging agile frameworks and customer feedback to more quickly deliver custom digital solutions Investing in Digital Transformation3 Launch of Associated Bank Digital AI-led Financial Wellness and Personal Insights Debit Card Controls Digital Account Opening Upgrades ▪ Cloud-based platf
Slide 13: Engaging Key Stakeholders
12 Engaging colleagues, customers & communities is core to our strategic plan…and is driving results Engaged 400+ colleagues in initial listening tour Enhanced our customer research capabilities Launched Engage Local initiative in three cities In 2022, our colleague engagement score increased and vo
Slide 14: ASB: A Story of Execution
13 21 Months of Effective Execution ASB: A Story of Execution We’ve established a pattern of execution while staying disciplined on credit, expenses & risk management 2021 2022 2023 ▪ Hired Andy Harmening as President and CEO in April ▪ Centralized FP&A; refocused digital and wealth strategies under
Slide 15: 2023 Full-Year Outlook
14 Balance Sheet Management Net Interest Income & Noninterest Income ▪ Total net interest income & noninterest income growth of 10% to 12% ▪ Net interest income (GAAP) growth of 15% to 17% ▪ Noninterest income compression of 6% to 8% Expense Management ▪ Noninterest expense growth of 4% to 6% ▪ Effe
Slide 16: Appendix
Appendix
Slide 17: Total Loans Outstanding
16 Total Loans Outstanding Balances as of December 31, 2022 Well-diversified $29 billion loan portfolio ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 12/31/2022 1 % of Total Loans 12/31/2022 1 % of Total Loans C&BL (by NAICS 2 ) CRE (by property type
Slide 18: Loan Stratification
17 Wisconsin 28% Illinois 23% Minnesota 10% Other Midwest 14% Texas 4%Other 22% Manufacturing & Wholesale Trade 20% Real Estate 18% Power & Utilities 20% Mortgage Warehouse 6% 1 Excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. Wind 38% Natural G