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.