Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Corporate Update (December 2024)
13 slides from Associated Banc-corp's corporate update, Dec 4, 2024
Slide 1: Strategic Update Presentation
December 4, 2024 Strategic Update Presentation Associated Banc - Corp
Slide 2: Important Disclosures
1 Important Disclosures 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: Advancing our Growth Strategy
2 Advancing our Growth Strategy Phase 1 Foundational for Growth 2021 - 2023 Phase 2 Advancing our Growth Strategy 2023 - Present Upgraded Product & Service Offerings Launched Mass Affluent Strategy Modernized Digital Banking Experience Introduced “Champion of You” Brand Strategy Enhanced Lending Cap
Slide 4: Improving our Return Profile Over Time
3 Improving our Return Profile Over Time 1 Our efforts to remix the balance sheet & drive toward improved profitability are on track Strategy Progress Since 2021 Growing diversified asset classes to decrease reliance on legacy low - yielding, low - relationship value asset classes ▪ Expanded Commerc
Slide 5: Accelerating our Growth Strategy
4 Accelerating our Growth Strategy Summary of actions taken in November & December 2024 Common Stock Offering Securities Sale & Reinvestment Residential Mortgage Loan Sale 1 3 Sold ~$1.3 billion of AFS securities and reinvested into ~$1.5 billion of securities at higher rates ▪ Weighted avg. yield o
Slide 6: Balance Sheet Repositioning Transaction Summary
5 1 All figures shown are approximations unless otherwise noted. 2 Transaction expected to close in the first quarter of 2025. 3 Reflects transaction pricing as of December 4, 2024. We’ve sold ~$1.3 billion in securities & have agreed to sell ~$0.7 billion in residential mortgage loans Balance Sheet
Slide 7: Key Benefits of Offering + Repositioning
6 $0.56 $0.56 $0.03 $0.59 3Q 2024 Actual 3Q 2024 Pro Forma 9.72% 9.72% 0.39% 10.11% 3Q 2024 Actual 3Q 2024 Pro Forma 1 Return on average tangible common equity. This is a non - GAAP financial measure. See appendix for a reconciliation of non - GAAP financial measures to GAAP financial measure s. Ear
Slide 8: 3Q Pro Forma Net Interest Income Walkforward
7 ($ in millions) Mortgage Loans Sold 2 FHLB Advances Paydown 2 Securities Reinvestment On a 3Q 2024 pro forma basis, this transaction adds ~$15.8 million to our quarterly net interest income Net +$15.8M NII impact $1.3B @ 1.87% $0.7B @ 2.99% $0.6B @ ~5.9% $1.5B @ 5.08% 3Q Pro Forma Net Interest Inc
Slide 9: Repositioning enables us to accelerate our organic strategy
8 $0.9 $2.0 $2.9 $3.6 $3.6 $7.6 $8.3 $8.8 $7.8 $7.1 $6.1 $6.9 $7.3 $7.2 $7.2 $9.0 $10.6 $11.2 $11.4 $11.4 $7.7 $7.2 $8.4 $9.1 $9.4 $3.1 $3.0 $3.1 $3.1 $3.1 $34.4 $38.0 $41.6 $42.2 $41.8 3Q 2021 3Q 2022 3Q 2023 3Q 2024 3Q 2024 Pro Forma Repositioning enables us to accelerate our organic strategy by d
Slide 10: Summary of Expected Benefits
9 Summary of Expected Benefits 1 Improved Net Interest Margin Improved Pro Forma Capital & Enhanced Capital Generation Improved Return on Average Tangible Common Equity 2 Our offering & repositioning work together to enhance earnings, boost capital, & provide capacity for growth 1 All pro forma figu
Slide 11: Appendix
Appendix
Slide 12: Common Stock Offering Transaction Summary
11 Common Stock Offering Transaction Summary Associated Banc - Corp Issuer ASB / NYSE Ticker / Listing 13.8 million shares @ $25.00 per share Offering Size ~$330.7 million Net Proceeds (6.3%) Discount to Last Sale (11/14/2024) November 14, 2024 Offering Announced General corporate purposes to suppor
Slide 13: Reconciliation & Definitions of Non-GAAP Items
12 Reconciliation & Definitions of Non - GAAP Items 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Period End Core Customer Deposits Reconciliation ($ in millions) $33,554 $32,691 $33,713 $33,446 $32,123 Total deposits (4,243) (4,062) (3,931) (4,447) (3,351) Brokered CDs (1,567) (1,503) (1,793) (1,566) (1,
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