Associated Banc : Second Quarter 2024 Investor Presentation

Second Quarter 2024

Investor Presentation

May 6, 2024

Associated Banc-Corp

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.

1

Associated Banc-Corp (NYSE: ASB)1

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

$41B

Assets

$4B

Equity

			Risk Mgmt &		188
			Shared Services	Corporate &
			18%	Branches
			Commercial
Consumer		Commercial		Specialty
38%	Average	& Business	Average	28%
	Lending
	Loans	37%	Deposits
		7.08%
	Commercial		Community, Consumer &
	Real Estate		Business		TCE Ratio3
	25%		54%

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.

$29B

Loans

$34B

Deposits

~4,100

Employees

9.43%

CET1 Ratio

2

Key Themes in 2024

We've positioned the company for success by mitigating risks & prioritizing relationships in our markets

Disciplined Credit Approach

• 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

Advancing our Growth Strategy

• 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-focusedproduct launches on track
• Champion of You brand strategy supporting acquisition, retention and deepening of customer households

3

Strong Credit Risk Profile1

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

Stable, Low-Risk Total Loan Portfolio

IL

21%

		MN		Other
		10%	Com'l &
		36%
	Loans by Other	Business	Loans by
WI	Lending
State	Midwest2	37%	Category
28%	13%

Other	Residential
Mortgage
29%
27%

Diversified CRE Portfolio

Prime/Super Prime Consumer Portfolio

WAvg. Portfolio FICO Scores

+2

								+9
792	792	784	786	759	768
Home Equity		Mortgage	Auto Finance
			1Q 2023			1Q 2024

Total 9.4% Loans by

Multi-family loans are just 9.4% of total loans, primarily located in stable Midwest markets (no rent-controlled NYC exposure)

Class

Office loans are just 3.5% of total loans & are weighted toward suburban/Class A properties3

98%

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

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.

4

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					Retail
Illinois	9%
	Other			9%
15%		Multi-Family
Midwest2
		38%
		21%
	CRE by		CRE by	14%
							Office
Wisconsin Geography				Property
20%			Texas		Type
			8%
					Other	Industrial
	Other				25%
				15%
	26%

CRE Credit Quality

	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 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 Office Highlights

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.

WAvg. Debt Service Coverage Ratio4 2024 Remaining Maturities

Central Business District vs. Suburban

Property Class Mix5

1.19x $306 million ~79% Suburban

~57% Class A

5 Property class mix determined by third-party vendor partner mapping of portfolio.

5

Momentum is Building Across our Company1

We are combining foundational strengths with targeted investments to drive transformational results

	▪ Named #1 for Retail Banking
	Customer Satisfaction in the
	Upper Midwest Region by
	J.D. Power2
Satisfied		Household
Customers		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

Satisfied Colleagues

• Winner of the 2024 Top Workplaces USA Award and five Energage Culture Excellence Awards in Spring 20243

Balance Sheet Growth

• 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.

6

Advancing our Growth Strategy

We are building on our momentum through organic investments designed to further enhance our return profile

Phase 1 Initiatives

Phase 2 Updates

• 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

People

• 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

Products, Process & Technology

• 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

4% to 6%

Loan Growth

FY 2024 Outlook Highlights1

3% to 5%

Core Customer Deposit2 Growth

2% to 4%

Net Interest Income Growth

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.

7

Quarterly Deposit & Funding Trends

We grew core customer deposits1 once again in 1Q 2024 while decreasing our reliance on wholesale funding

	Average Quarterly Deposits							EoP Funding Change (12/31/2023 to 3/31/2024)
	($ in billions)									($ in millions)
					$31.3	$32.0	$32.2	$33.3
									Total Deposits +$267mm (+1%)
	$29.9
		$6.3	$6.2	$5.9
					$6.7				Core Customer Deposits1 +$557mm (+2%)
	$7.3						$7.5					Savings
																$289
					$6.7	$7.0	$7.2					Money Market				$149
	$6.8
	$4.7	$4.8	$4.9	$4.9				Noninterest-Bearing Demand
									$134
	$4.7						$6.1					Customer CDs		$66
					$6.7	$6.3	$6.1			$(81)		Interest-Bearing Demand
	$7.5		$2.5	$2.8	$2.9
	$2.0				Wholesale Funding Sources $(463mm) (-5%)
									$4.3
	$1.6	$3.0	$3.4	$3.5
	$1.1 $0.8	$1.5	$1.6	$1.6	$1.7				Other Wholesale Funding	$434
	1Q 2023	2Q 2023	3Q 2023	4Q 2023	1Q 2024	Network Transaction Deposits					$227
				Noninterest-Bearing Demand			Customer CDs	$(516)			Brokered CDs
				Interest-Bearing Demand			Brokered CDs
				Savings					Network Transaction	$(607)			FHLB Advances
				Money Market				Deposits

1 This is a non-GAAP financial measure. See appendix for a reconciliation of end of period core customer deposits to total deposits.

8

Quarterly Loan Trends

Period end loans grew by $278 million vs. the prior quarter, led by growth in Auto and C&I

Average Quarterly Loans		EoP Loan Change (12/31/2023 to 3/31/2024)
($ in billions)		($ in millions)

$28.8	$29.4	$29.9	$30.0	$29.4
								Auto Finance
$10.6	$10.9	$11.0	$10.8	$10.8			Commercial & Industrial
												CRE-Owner Occupied
$7.3	$7.3	$7.3	$7.4	$7.4				CRE Construction
											$969M	Residential Mortgage
										mortgage loan
$8.6	$8.7	$8.8	$8.7	$7.9	sale settled
12/21/2023
												$(28)
$2.4	$2.5	$2.8	$3.0	$3.3			$(89)
1Q 2023	2Q 2023	3Q 2023	4Q 2023		1Q 2024
		Commercial &			Commercial		Residential			Commercial &
		Business Lending			Real Estate		Mortgage					Business Lending

Auto Finance, Home		Consumer Lending
Equity & Other
Consumer

$215

$127

$34

$16

$3

Home Equity & Other Consumer

CRE Investor

Commercial

Real Estate

9