May 6, 2024 Second Quarter 2024 Investor Presentation Associated Banc-Corp Exhibit 99.1
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’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “will,” “intend,” "target,“ “outlook,” “project,” “guidance,” or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference. Trademarks: All trademarks, service marks, and trade names referenced in this material are official trademarks and the property of their respective owners. Presentation: Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These non-GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance with GAAP. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation.
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: ASB)1 $41B Assets $29B Loans $4B Equity $34B Deposits Average Loans Average Deposits 1 All figures as of or for the quarter ended March 31, 2024 unless otherwise noted. 2 Based on assets as of December 31, 2023. 3 This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. 9.43% CET1 Ratio 188 Branches ~4,100 Employees 7.08% TCE Ratio3
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 consumer portfolios ▪ Diversified CRE portfolio with limited central business district office exposure ▪ Annual capital stress testing & concentration management controls ▪ Solid credit performance in recent quarters, in line with continued credit normalization ▪ Ongoing tailwinds from successful execution of Phase 1 initiatives ▪ Enhanced profitability profile from balance sheet repositioning completed in 4Q 2023 ▪ Leadership team bolstered by several key hires in 2023-2024 ▪ Continued momentum with commercial RM hiring plan ▪ Consumer-focused product launches on track ▪ Champion of You brand strategy supporting acquisition, retention and deepening of customer households Disciplined Credit Approach Advancing our Growth Strategy
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. 4 From inception on September 30, 2021 through the period ended March 31, 2024. WI 28% IL 21% MN 10% Other Midwest 13% Other 29% Loans by State 2 A company-wide focus on discipline & diversification has strengthened our credit profile Prime/Super Prime Consumer PortfolioStable, Low-Risk Total Loan Portfolio Diversified CRE Portfolio Strong Credit Risk Profile1 98% of auto loans booked have had prime/super prime FICO scores4 Total Loans by Class Loans by Category Office loans are just 3.5% of total loans & are weighted toward suburban/Class A properties3 792 784 759 792 786 768 Home Equity Mortgage Auto Finance 1Q 2023 1Q 2024 +2 WAvg. Portfolio FICO Scores 98% +9 9.4% Multi-family loans are just 9.4% of total loans, primarily located in stable Midwest markets (no rent-controlled NYC exposure)
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 Missouri, Indiana, Ohio, Michigan and Iowa. 3 Calculated on an annualized basis. Negative values indicate a net recovery. 4 Calculated based on the 10-year Treasury rate plus 300 basis points/25-year amortization. 5 Property class mix determined by third-party vendor partner mapping of portfolio. High-Quality Commercial Real Estate Portfolio1 ASB has built a diversified CRE portfolio by partnering with well-known developers in stable Midwest markets 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Portfolio LTV 60% 60% 59% 58% 59% Delinquencies/Loans 0.00% 0.00% 0.14% 0.25% 0.28% NALs/Loans 0.35% 0.30% 0.15% 0.00% 0.26% ACLL/Loans 1.75% 1.88% 1.90% 1.88% 1.87% NCOs/Avg. Loans3 0.00% (0.12%) (0.02%) (0.01%) 0.00% CRE Credit Quality CRE Loan Portfolio Granularity % of Total Loans Largest Single CRE Borrower 0.16% Top 10 Largest CRE Borrowers 1.38% Largest CRE Property Type (Multi-Fam) 9.43% CRE Office Loans 3.45% CRE by Geography CRE by Property Type Total Loans by Segment CRE Office Highlights WAvg. Debt Service Coverage Ratio4 1.19x 2024 Remaining Maturities $306 million Central Business District vs. Suburban ~79% Suburban Property Class Mix5 ~57% Class A
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 Household Growth ▪ Net consumer checking HH growth in 1Q24 ▪ Net business checking HH growth in 1Q24 ▪ Consumer checking HH acquisition +26% vs. 1Q23 ▪ Consumer checking HH attrition -9% vs. 1Q23 ▪ Total loan growth of $278 million ▪ Total deposit growth of $267 million ▪ Core customer deposit4 growth of $557 million 1 All updates as of or for the period ended March 31, 2024 unless otherwise noted. Growth reflects period end results for the quarter ended March 31, 2024 compared to period end results for the quarter ended December 31, 2023 unless otherwise noted. 2 For J.D. Power 2024 award information, visit jdpower.com/awards. 3 All awards based on July 2023 Workplace Survey results. Energage Culture Excellence Awards received in the categories of Purpose & Values, Innovation, Leadership, Work-Life Balance and Comp & Benefits. 4 This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. ▪ Winner of the 2024 Top Workplaces USA Award and five Energage Culture Excellence Awards in Spring 20243
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 ▪ Launched Mass Affluent strategy ▪ Introduced “Champion of You” brand strategy ▪ Added prime/super prime Auto Finance vertical ▪ Bolstered leadership across key lines of business: ▪ Jayne Hladio (Private Wealth) ▪ Phillip Trier (Commercial) ▪ Steven Zandpour (Retail) ▪ Neil Riegelman (Commercial) ▪ Michael Lebens expected to join as SVP, Commercial Banking Segment Leader in MN on 5/13 ▪ Trained 13 designated Mass Affluent bankers in April, bringing total to 46 ▪ Progressing on our plan to hire 26+ add’l Commercial RMs ▪ Launched automated direct deposit switching in 4Q ▪ Launched Early Pay in 1Q ▪ Launched new branch deposit account opening platform in 1Q ▪ Unveiled new social media campaign in 1Q ▪ Launched new marketing tactics in 1Q to drive consumer & small business acquisition 1 Projections are on an end of period basis as of and for the year ended 12/31/2024 as compared to 2023 results as of 12/31/2023 unless otherwise noted. 2 This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. 4% to 6% Loan Growth 3% to 5% Core Customer Deposit2 Growth 2% to 4% Net Interest Income Growth FY 2024 Outlook Highlights1 People Products, Process & Technology
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 $2.0 $2.5 $2.8 $2.9 $7.5 $6.7 $6.3 $6.1 $6.1 $4.7 $4.7 $4.8 $4.9 $4.9 $6.8 $6.7 $7.0 $7.2 $7.5 $7.3 $6.7 $6.3 $6.2 $5.9 $29.9 $31.3 $32.0 $32.2 $33.3 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Customer CDs Savings Money Market Network Transaction Deposits Noninterest-Bearing Demand Interest-Bearing Demand Brokered CDs 1 This is a non-GAAP financial measure. See appendix for a reconciliation of end of period core customer deposits to total deposits. $(81) $66 $134 $149 $289 Noninterest-Bearing Demand Interest-Bearing Demand Savings $(607) $(516) $227 $434 Network Transaction Deposits Other Wholesale Funding Brokered CDs FHLB Advances Core Customer Deposits1 +$557mm (+2%) Wholesale Funding Sources $(463mm) (-5%) Total Deposits +$267mm (+1%) Money Market Customer CDs
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 $29.4 $29.9 $30.0 $29.4 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 ($ in billions) Commercial & Business Lending Commercial Real Estate Residential Mortgage Auto Finance, Home Equity & Other Consumer Average Quarterly Loans ($ in millions) $(89) $(28) $3 $16 $34 $127 $215 Residential Mortgage Commercial & Industrial Auto Finance EoP Loan Change (12/31/2023 to 3/31/2024) CRE Investor CRE-Owner Occupied CRE Construction Home Equity & Other Consumer $969M mortgage loan sale settled 12/21/2023
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 $258 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2.79% 2.69%2.71% 2.80% 3.07% Quarterly Net Interest Income Quarterly Net Interest Margin Rate on Total Interest- Bearing Liabilities Yield on Total Earning Assets 4.94 5.18 5.36 5.51 5.64 2.48 3.06 3.36 3.55 3.55 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Estimated NII Sensitivity Profile (%) 6.8 4.0 4.0 3.8 3.23.4 1.9 2.0 1.9 1.7 -2.3 -1.2 -0.6 -1.3 -1.0 -4.4 -1.8 -0.8 -2.6 -1.9 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Up 200 bps Up 100 bps Down 100 bps Down 200 bps (12-Month Ramp) ($ in millions)
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 ▪ Expanded Commercial RM base across footprint ▪ $2.5B in prime/super prime Auto balances ▪ Exited TPO mortgage business in 1Q23 ▪ Sold $969M in mortgage loans & pivoted to “originate to sell” model in 4Q23 ▪ Shifted to balanced RM scorecard to deepen Commercial relationships ▪ Modernized digital banking experience ▪ Upgraded product & service offerings ▪ Mass Affluent strategy launched 4Q22 ▪ Repaid $849M of FHLB Advances in 4Q23 (end of period growth vs. 4Q23, $ in millions) LiabilitiesAssets Auto Finance Relationship Commercial Low- Relationship Mortgage Low- Relationship Commercial Wholesale Funding Sources Core Customer Deposits2 Attracting and deepening customer relationships to decrease reliance on wholesale and network funding sources $3 $127 $215 C&I Auto Mortgage $(463) $267 $557 Wholesale Funding Core Customer Deposits2 1 All updates as of or for the period ended March 31, 2024 unless otherwise noted. 2 This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. Total Deposits
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 digital-forward investments to deliver a better experience for our customers 1 For J.D. Power 2024 award information, visit jdpower.com/awards. Building on our Strong Momentum With 12 major customer-facing upgrades since launching our platform in Fall 2022, our quarterly cadence of enhancements planned for 2024 includes: ▪ ADIE Virtual Assistant ▪ Omnichannel branch sales platform ▪ Credit score & identity protection ▪ Private Wealth client experience ▪ Personalized digital marketplace Digital Roadmap Updates Enhancing the Customer Experience with Digital
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 tailwind Balance sheet repositioning completed in 4Q 2023 unlocks the benefits of our organic strategy by providing balance sheet capacity to achieve our loan growth targets while mitigating funding risks Core customer deposit growth expected from our relationship-focused commercial expansion, continued success of Mass Affluent, product enhancements and sustained investment in digital to deepen relationships and grow households Expense control has been addressed through reductions in force, branch closures, and a disciplined approach to vendor management and discretionary spending Credit discipline remains a foundational strength, with diversified portfolios, enhanced risk controls, and a growth strategy emphasizing core businesses in core markets Capital Levels are well within our target ranges and well above regulatory requirements Our proactive approach in addressing our strategic opportunities has set us up well for 2024 & beyond
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 fourth quarter of 2023. These figures are non-GAAP financial measures. See appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. 2 Projections are on an end of period basis as of and for the year ended 12/31/2024 as compared to adjusted 2023 results as of 12/31/2023 unless otherwise noted. 3 This is a non-GAAP financial measure. See appendix for a reconciliation of non-GAAP financial measures to GAAP financial measures. 4 2024 noninterest expense guidance excludes the impact of the $31 million FDIC special assessment finalized during the fourth quarter of 2023 and the $8 million FDIC special assessment finalized during the first quarter of 2024. FY 2024 Outlook GAAP FY 2023 Result Adjusted FY 2023 Result1 FY 2024 Guidance2 EoP Total Loans $29.2B (+1.4% vs. 2022) $29.2B (+1.4% vs. 2022) 4% to 6% Growth EoP Total Deposits $33.4B (+12.9% vs. 2022) Core Customer Deposits3 $27.4B (-2.4% vs. 2022) 3% to 5% Growth (Core Customer Deposits) Net Interest Income $1.040B (+8.6% vs. 2022) $1.040B (+8.6% vs. 2022) 2% to 4% Growth Noninterest Income $63M (-77.6% vs. 2022) $264M (-6.4% vs. 2022) 0% to 2% Decrease Noninterest Expense $814M (+8.9% vs. 2022) $783M (+4.8% vs. 2022) 2% to 3% Growth4 Effective Tax Rate 11.2% N/A 19% to 21%
Appendix
16 Reconciliation & Definitions of Non-GAAP Items 1 The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. 2 The mortgage portfolio sale and investments sold that are classified as one time items are the result of a balance sheet repositioning that the Corporation announced in the fourth quarter of 2023. End of Period Core Customer Deposits Reconciliation ($ in millions) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Total deposits $30,332 $32,014 $32,123 $33,446 $33,713 Brokered CDs (1,186) (3,818) (3,351) (4,447) (3,931) Network transaction deposits (1,273) (1,601) (1,649) (1,566) (1,793) Core customer deposits $27,873 $26,595 $27,123 $27,432 $27,989 Tangible Common Equity and Tangible Assets Reconciliation1 ($ in millions) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Common equity $3,932 $3,929 $3,934 $3,980 $3,975 Goodwill and other intangible assets, net (1,152) (1,150) (1,148) (1,145) (1,143) Tangible common equity $2,779 $2,779 $2,786 $2,834 $2,831 Total assets $40,703 $41,219 $41,637 $41,016 $41,137 Goodwill and other intangible assets, net (1,152) (1,150) (1,148) (1,145) (1,143) Tangible assets $39,550 $40,070 $40,490 $39,870 $39,994 One Time Item Noninterest Expense Reconciliation ($ in millions) YTD Dec 2023 4Q 2023 1Q 2024 GAAP noninterest expense $814 $239 $198 FDIC special assessment (31) (31) (8) Noninterest expense, excluding one time items $783 $209 $190 One Time Item Noninterest Income Reconciliation ($ in millions) YTD Dec 2023 4Q 2023 GAAP noninterest income $63 $(131) Loss on mortgage portfolio sale2 136 136 Net loss on sale of investments2 65 65 Noninterest income, excluding one time items $264 $70