Slide 1: First Quarter Investor Presentation
March 7, 2022 Associated Banc-Corp First Quarter Investor Presentation 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: Foundational Franchise Strengths
2 Foundational Franchise Strengths Strong Markets Deep Roots In Our Communities Low-Cost Deposit Franchise Effective Risk Management Exceptional Customer Service ▪ Large Markets: Midwest footprint holds nearly 19% of the U.S. population1 and nearly 30% of U.S. manufacturing jobs2 ▪ Resilient Markets
Slide 4: Associated: Capitalizing on our Momentum
3 Growth Focused Higher ReturnsDigital Forward Associated: Capitalizing on our Momentum
Slide 5: Strategic Initiative Updates
4 Strategic Initiative Updates1 We are making meaningful progress on our initiatives as 2022 gets underway Expanding our Lending Capabilities Growing our Core Businesses Investing in our Digital Transformation ▪ Auto Finance: Nearly 12,000 auto loans fulfilled as of 2/28/2022 ▪ Asset-Based Lending:
Slide 6: Strategic Initiative Updates: Balance Trends and Targets
5 New Asset-Based Lending + Equipment Finance Total Commercial (including legacy Asset- Based Lending) Auto Finance Strategic Initiative Updates $7 $143 $1,350 $2,500 3Q 2021 4Q 2021 YE2022 Target YE2023 Target $0 $67 $300 $600 3Q 2021 4Q 2021 YE2022 Target YE2023 Target $15,120 $15,550 $16,000 $17,
Slide 7: Commercial Lending Update
6 Commercial Lending Update ▪ Annualized Total Commercial1 loan growth of 13% QoQ EoP ▪ Asset-Based Lending (ABL) vertical expanded with new focus ▪ Mortgage Warehouse declines were consistent with diminished home refinance activity ▪ CRE Construction reflects seasonal factors ▪ Strategic exit of th
Slide 8: Strong Capital and Liquidity Profile
7 Loan / Deposit Ratio 96.0% 85.1% 4Q 2019 4Q 2021 $5.7 $6.8 $0.6 $1.0$6.3 $7.8 4Q 2019 4Q 2021 Securities Cash ($ in billions) Strong Capital and Liquidity Profile Capital Priorities EoP Securities + Cash Target CET1 at or above 9.5% Common Dividend 40-50% Organic Growth 50%-60% Inorganic Growth 0%
Slide 9: Digital Transformation: Already Underway
8 Digital Transformation: Already Underway Accelerating our Digital Experience Leveraging our Strong Digital Foundation1 Driving Digital Sales We have begun shifting our investment priorities to ensure Associated has a digital forward focus 1 All metrics for the quarter ended December 31, 2021. 2 Pe
Slide 10: Consumer Digital Focus and Digital Engagement
9 362 387 394 4Q 2019 4Q 2020 4Q 2021 Customer-Originated Digital Mortgage Applications 24% 33% 34% 4Q 2019 4Q 2020 4Q 2021 Consumer Digital Focus Digital Engagement Customers have continued to leverage our digital offerings as the economy reopens Active Digital Banking Users (in thousands) Mobile D
Slide 11: Redirecting Brick and Mortar Expenses
10 Redirecting Brick and Mortar Expenses We have consistently optimized our branches and staffing over the last decade Pro Forma Branch Count Trends1 202 176 26 19 20 14 6 270 237 215 213 248 215 2011 2013 2015 2017 2019 2021 ASB BKMU (58) HBAN (32) FNB (9) 1 Branch count at year end. Parenthetical
Slide 12: Generating Positive & Increasing Operating Leverage
11 +6%-8% +7%-10% 2021 2022 2023 +3%-4% +3%-4% 2021 2022 2023 Generating Positive & Increasing Operating Leverage Our revenue strategies are expected to leverage our people and technology while driving efficiency ~8% ~3.5% CAGR CAGR Net Interest Income + Noninterest Income Outlook1 Noninterest Expen
Slide 13: Positioning for Improved Financial Performance
12 7.50% TCE Ratio1 Positioning for Improved Financial Performance Our growth focused and digital forward vision is expected to drive higher shareholder returns Expanding our Lending Capabilities Growing our Core Businesses Investing in our Digital Transformation 2.75% Net Interest Margin 55%-60% Ef
Slide 14: 2022 Outlook
13 Balance Sheet Management1 ▪ Auto Finance loan growth of $1.2+ billion ▪ Total Commercial2 loan growth of $750 million to $1 billion ▪ Target investments / total assets ratio of 20% to 22% Net Interest Income & Noninterest Income ▪ Net interest income of $800+ million ▪ Noninterest income of $300+
Slide 15: 4Q 2021 Financial Trends
4Q 2021 Financial Trends
Slide 16: Expanding Balance Sheet and Income Trends
15 Expanding Balance Sheet and Income Trends ▪ Annualized EoP QoQ growth of: ▪ 10% in total loans ▪ 9% in total deposits ▪ EoP securities/total assets of 19%, up from 17% in 3Q ▪ 7% annualized expansion in net interest income Contributing to Strong Profitability and Capital Trends ▪ Repurchased $25
Slide 17: Annual Loan Trends
16 $1.3 $1.3 $1.2 $1.0 $1.0 $7.5 $8.3 $8.1 $7.9 $7.6 $4.8 $5.1 $5.2 $6.2 $6.2 $0.6 $0.7 $0.5 $0.3 $0.8 * $6.6 $7.6 $7.8 $8.3 $9.3 $20.8 $22.9 $22.8 $24.5 $24.2 2017 2018 2019 2020 2021 Annual Loan Trends General commercial growth even as we continued to reduce our PPP and Oil & Gas exposures EoP Ann
Slide 18: Loan Trend Updates
17 29.2 31.4 31.5 31.4 30.4 31.8 31.9 32.8 34.7 41.7 40.7 40.9 40.6 40.0 40.3 38.2 37.4 39.8 Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2021 Historical Avg. Loan Trend Updates Line utilization rebounded and new construction commitments grew strongly Line Utilization1 (%) 1 Outstanding Balances / T
Slide 19: Net Interest Income and Yield Trends
18 Net Interest Income and Yield Trends NII and NIM Trends 2.88 2.91 2.87 2.89 2.91 2.69 2.57 2.56 2.47 2.44 3.00 2.79 2.82 2.83 2.84 1.94 1.81 1.66 1.57 1.76 0.43 0.40 0.36 0.30 0.27 0.07 0.07 0.06 0.07 0.05 0.97 0.74 0.51 0.38 0.32 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Average Yields (%) ($ in m
Slide 20: Cash and Investment Securities Portfolio
19 $3.2 $3.0 $3.2 $3.3 $4.1 $1.9 $1.9 $2.0 $2.0 $2.3 $1.0 $1.0 $1.8 $2.2 $1.6 $6.1 $5.9 $6.9 $7.5 $7.9 1.94% 1.81% 1.66% 1.57% 1.76% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 15% 16% 16% 17% 19% 2% 6% 5% 5% 3% 18% 21% 21% 22% 22% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Cash and Investment Securities P
Slide 21: Quarterly Funding Trends
20 $1.3 $1.1 $0.9 $0.9 $0.8 $1.9 $1.7 $1.5 $1.4 $1.4 $6.5 $6.9 $7.0 $7.0 $6.9 $3.6 $3.8 $4.1 $4.2 $4.4 $5.7 $5.7 $5.9 $6.3 $6.5 $7.7 $7.7 $8.1 $8.1 $8.4 $26.7 $26.8 $27.5 $28.1 $28.4 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Quarterly Funding Trends ($ in billions) Average Quarterly Deposits Time Depo
Slide 22: Annual Deposit Portfolio Trends
21 $3.1 $2.1 $1.9 $1.4 $0.9 $2.0 $2.8 $3.1 $2.3 $1.5 $6.3 $7.3 $7.0 $6.5 $6.9 $1.5 $1.9 $2.4 $3.3 $4.1 $4.0 $4.8 $5.1 $5.6 $6.1 $5.0 $5.2 $5.2 $6.9 $8.1 $21.9 $24.1 $24.7 $26.0 $27.7 2017 2018 2019 2020 2021 Annual Deposit Portfolio Trends ($ in billions) Average Annual Deposits Time Deposits Saving
Slide 23: Noninterest Income Trends
22 $15 $15 $9 $8 $3 $15 $24 $8 $11 $8 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $52 $52 $53 $54 $55 $15 $24 $8 $11 $8 $6 $8 $6 $7 $10 $13 $12 $6 $10 $9 $86 $95 $73 $82 $82 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Noninterest Income Trends Wealth Management & Capital Markets FeesNoninterest Income Trend
Slide 24: Noninterest Expense Trends
23 $98 $104 $107 $108 $108 $75 $71 $67 $68 $73 $2 $1 $173 $175 $174 $178 $182 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Noninterest Expense Trends Adjusted Efficiency Ratio2 (%)Noninterest Expense Trends 1 Other expenses are primarily comprised of Technology, Occupancy, Equipment, Business Development
Slide 25: 4Q 2021 Pre-Tax Pre-Provision Income Walk-Forward
24 4Q 2021 Pre-Tax Pre-Provision Income1 Walk-Forward 4Q PTPP income remained relatively flat QoQ, with NII expansion offset by initiative-related charges 3Q PTPP Income Net Interest Income Facilities & Initiative-Related Items2 4Q Pre-Tax Income ($ in millions) $86 1 A non-GAAP measure. Please refe
Slide 26: Strong Capital Position
25 7.94 10.45 11.81 14.02 7.86 10.31 11.02 13.10 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 financial measures. Capital
Slide 27: 4Q 2021 ACLL
26 4Q 2021 ACLL ▪ Allowance for credit losses on loans (ACLL) decreased $12 million QoQ ▪ Net charge offs of only $6 million; or 0.11% of average loans ▪ 4Q 2021 negative provision of $6 million, compared to negative $24 million in 3Q 2021 and provision of $17 million in 4Q 2020 ▪ CECL forward looki
Slide 28: Credit Quality Trends
27 Credit Quality Trends $97 $72 $66 $65 $63 $37 $32 $18 $8 $6 $77 $59 $63 $62 $61 $211 $163 $147 $135 $130 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $52 $41 $42 $44 $43 $37 $15 $9 $30 $15 $89 $56 $51 $75 $58 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Credit metrics largely continued to improve during 4Q
Slide 29: Segment Reporting Details
Segment Reporting Details
Slide 30: Balanced Business Segments
29 Balanced Business Segments1 15.5% 12.0% Corporate and Commercial Specialty Community, Consumer, and Business Community, Consumer, and Business Corporate and Commercial Specialty $571 $477 Corporate and Commercial Specialty Community, Consumer, and Business $24.4 $25.6 Corporate and Commercial Spe
Slide 31: Corporate Banking
30 Manufacturing & Wholesale Trade 18% Real Estate 16% Power & Utilities 19% Mortgage Warehouse 13% Construction 4% Health Care and Soc. Assist. 4% Finance & Insurance 5% Retail Trade 4% Pro., Sci., and Tech Svs 2% Mining 1% Rental and Leasing Svs 3% Other 12% Corporate Banking Corporate and Commerc
Slide 32: Commercial Real Estate
31 Multi-Family 33% Retail 11% Office / Mixed Use 20% Industrial 20% 1-4 Family Construction 7% Hotel / Motel 4% Other 5% Commercial Real Estate Corporate and Commercial Specialty Segment Local experienced teams create custom real estate financing solutions ▪ Term, acquisition, construction and inte
Slide 33: Wealth Management
32 Wealth Management Corporate and Commercial Specialty Segment Market-based teams are comprised of specialists ▪ Wealth Management Services offers a suite of services tailored to the unique needs of high-net-worth and ultra-high-net- worth clients 2021 Highlights ▪ Promoted John Thayer, CFA to lead
Slide 34: Consumer and Business Banking (CBB)
33 362 387 394 4Q 2019 4Q 2020 4Q 2021 Consumer and Business Banking (CBB) Community, Consumer, and Business Segment Full-range services for consumers and small businesses ▪ Retail Banking provides best-in-class customer experience across digital channels, branches and contact centers ▪ Consumer Len
Slide 35: Community Markets
34 Community Markets Community, Consumer, and Business Segment Localized approach ensures the customer experience is at the forefront of decisions and actions ▪ Virtual community banks with our full suite of financial and risk management solutions in midsize markets ▪ Community market presidents are
Slide 36: Appendix
Appendix
Slide 37: Total Loans Outstanding
36 Total Loans Outstanding Balances as of December 31, 2021 Well-diversified $24 billion loan portfolio ($ in millions) 1 All values as of period end. 2 North American Industry Classification System. 3 Includes Oil & Gas loans. 12/31/2021 1 % of Total Loans 12/31/2021 1 % of Total Loans C&BL (by NAI
Slide 38: Key COVID Commercial Loan Exposures
37 1 As of 12/31/2021. Excludes $52 million Oil & Gas portfolio. 2 C&BL excludes grocers, convenience stores, vehicle dealers, auto parts and tire dealers, direct and mail order retailers, and building material dealers; CRE excludes properties primarily anchored by grocers, self-storage facilities,
Slide 39: Loan Stratification
38 Wisconsin 29% Illinois 23% Minnesota 10% Other Midwest 14% Texas 3% Other 21% Manufacturing & Wholesale Trade 18% Real Estate 16% Power & Utilities 19% Mortgage Warehouse 13% 1 Excludes Other Consumer portfolio. 2 Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa. 3 Principally re
Slide 40: 2021-2023 Community Commitment Plan
39 2021-2023 Community Commitment Plan Associated is working to address economic development and equity issues in each of our markets $3.37 billion Three-year commitment To support minority communities, low-to-moderate income (LMI) communities and small businesses in our three-state branch footprint
Slide 41: Environmental, Social and Governance Highlights
40 Environmental, Social and Governance Highlights Associated’s new Environmental, Social and Governance Report was released in March 2022 Nearly $2.2 billion in credit commitments to support wind, solar, battery and hydroelectric projects since 2011 Over 36% of our Board1 is diverse in terms of eth
Slide 42: Colleague Experience and Engagement
41 Colleague Experience and Engagement1 “Inclusive,” Flexible” and “Diverse” are the top three words colleagues use to describe ASB’s culture 1 All updates as of or for the period ended December 31, 2021. On-Site 39% Hybrid 51% Remote 10% Flexible Work Environment ▪ 85% of colleagues participated in
Slide 43: Reconciliation and Definitions of Non-GAAP Items
42 Reconciliation and Definitions of Non-GAAP Items ($ in millions) 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 financ
Slide 44: Reconciliation and Definitions of Non-GAAP Items
43 Reconciliation and Definitions of Non-GAAP Items ($ in millions) 1 This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per com