Associated Banc : Third Quarter 2024 Investor Presentation

ASB

Third Quarter 2024

Investor Presentation

September 3, 2024

Associated Banc-Corp

Associated Banc-Corp (NYSE: ASB)1

With origins dating back to 1861, ASB is the largest bank holding company based in Wisconsin2

Risk Mgmt &

Shared Services

Corporate &

17%

Commercial

Consumer

Commercial

Specialty

38%

Average

& Business

26%

Lending

Average

Loans

37%

Deposits

Commercial

Community, Consumer &

Real Estate

Business

25%

56%

$42B $30B

AssetsLoans

$4B $33B

EquityDeposits

188 ~4,000

BranchesEmployees

7.18%

9.68%

TCE Ratio3

CET1 Ratio

2

Key Themes in 2024

We've positioned ASB for success by advancing our growth strategy while remaining disciplined on credit

Disciplined Credit Approach

Advancing our Growth Strategy

3

Disciplined Credit Approach

Diversified Credit Risk Profile1

A company-wide focus on discipline & diversification has enhanced our credit profile

Stable Total Loan Portfolio

IL

21%

MN

Other

9%

Com'l &

36%

Business

WI Loans by

Loans by

Other

Lending

28%

State

Midwest2

37%

Category

12%

Other

Residential

Mortgage

29%

26%

Diversified Commercial Real Estate Portfolio

Prime/Super Prime Consumer Portfolio

WAvg. Portfolio FICO Scores

+1

+3

+8

791

792

783

786

761

769

Home Equity

Mortgage

Auto Finance

2Q 2023

2Q 2024

Total 9.7% Loans by

Multi-family loans are just 9.7% of total loans, primarily located in stable Midwest markets (no rent-controlled NYC exposure)

Class

Office loans are just 3.4% of total loans & are weighted toward suburban/Class A properties3

98%

98% of auto loans booked have had prime/super prime FICO scores4

5

Credit Quality Trends

2Q 2024 credit quality remained solid with delinquencies, criticized loans, & NCOs down vs. prior quarter

Total Delinquent Loans

($ in millions)

$50

$84

$51

$42

$62

$37

$40

$47

$48

$2

$2

$22

$2

$35

$2

2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024

Accruing Loans 30-89 Days PD Accruing Loans 90+ Days PD

Total Criticized Loans

($ in millions)

$724

$842

$820

$818

$801

$217

$155

$118

$248

$286

$345

$387

$454

$484

$528

$131

$169

$149

$178

$154

2Q 2023

3Q 2023

4Q 2023

1Q 2024

2Q 2024

Special Mention Substandard Accruing Nonaccrual Loans

Nonaccrual Loans

($ in millions)

$169

$149

$178

$154

$131

$79

$74

$23

$36

$63

$48

$19

$22

$11

$0

$73

$79

$86

$85

$83

2Q 2023

3Q 2023

4Q 2023

1Q 2024

2Q 2024

Consumer

CRE

Commercial & Business Lending

Net Charge Offs and Provision

($ in millions)

$22

$22

$21

$22 $24

$21 $23

$11

$18

$16

2Q 2023

3Q 2023

4Q 2023

1Q 2024

2Q 2024

Total Net Charge Offs

Provision for Credit Losses on Loans

6

High-Quality Commercial Real Estate Portfolio1

ASB has built a diversified CRE portfolio by partnering with well-known developers in stable Midwest markets

Consumer

Total

Com'l &

38%

Business

Loans by

Lending

37%

Segment

CRE

25%

Minnesota

Illinois

9%

Retail

Other

Multi-Family

9%

16%

Midwest2

39%

CRE by

21%

CRE by Office

Wisconsin Geography

Property

14%

Texas

Type

20%

8%

Other

Industrial

Other

23%

15%

26%

CRE Credit Quality

2Q 23

3Q 23

4Q 23

1Q 24

2Q 24

Portfolio LTV

60%

59%

58%

59%

59%

Delinquencies/Loans3

0.00%

0.14%

0.52%

0.28%

0.01%

NALs/Loans

0.30%

0.15%

0.00%

0.26%

0.67%

ACLL/Loans

1.88%

1.90%

1.88%

1.87%

1.98%

NCOs/Avg. Loans4

(0.12%)

(0.02%)

(0.01%)

0.00%

0.25%

CRE Loan Portfolio Granularity

% of Total Loans

Largest Single CRE Borrower

0.16%

Top 10 Largest CRE Borrowers

1.33%

Largest CRE Property Type (Multi-Fam)

9.65%

CRE Office Loans

3.39%

CRE Office Highlights

1

All updates as of or for the period ended June 30, 2024 unless otherwise noted.

2

Other Midwest includes Missouri, Indiana, Ohio, Michigan and Iowa.

3

Accruing loans 30-89 days past due + accruing loans 90+ days past due.

4

Calculated on an annualized basis. Negative values indicate a net recovery.

5

Calculated based on the 10-year Treasury rate plus 300 basis points/25-year amortization.

WAvg. Debt Service Coverage Ratio5 2024 Remaining Maturities

Central Business District vs. Suburban

Property Class Mix

1.18x $233 million ~79% Suburban

~58% Class A6

6 Class A determined by third-party vendor partner mapping of portfolio.

7

Advancing our Growth Strategy

Phase 1 Strategic Plan: Foundational to Growth

Launched in 2021, Phase 1 of our strategic plan established ASB's ability to execute

Enhanced Lending Capabilities

Upgraded Product & Service Offerings

Launched Mass

Affluent Strategy

Modernized Digital Banking Experience

Introduced "Champion of You" Brand Strategy

Foundational Outcomes1 from Phase 1

3 Annual net promoter score as measured by a customer's likelihood to recommend Associated Bank to family and friends as indicated in our internal Consumer Relationship

9

Survey. 2024 YTD through June 30, 2024.

Disclaimer

Associated Banc-Corp published this content on 03 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 03, 2024 at 22:04:06 UTC.