Associated Banc-Corp (ASB) Barclays 23rd Annual Global Financial Services Conference summary

Strategic initiatives and growth plans

• Completed phase I of the strategic plan, focusing on foundational improvements and digital platform upgrades; phase II launched in late 2023, emphasizing further growth and customer acquisition.

• Achieved stability in credit quality, with a $10 billion super prime loan portfolio and diversified CRE exposure in Midwest markets.

• Household growth turned positive for the first time in a decade, now at 1.5%-2% annually, supported by improved customer satisfaction and expanded product offerings.

• Consumer banking now offers 10 of 14 key competitive features, aiming for 12, driving higher acquisition and deeper customer relationships.

• Commercial banking expansion includes hiring experienced bankers in key markets, targeting a 26%-28% increase in commercial RMs by Q1 2025.

Market expansion and funding strategy

• Growth in Milwaukee and Minneapolis is prioritized, with a strong pipeline and expectations for meaningful contributions in 2025.

• Balanced approach to loan and deposit growth, leveraging segmentation and disciplined deposit acquisition strategies.

• CRE growth will remain disciplined, with low single-digit increases expected in 2025, focusing on long-term relationships and market-driven opportunities.

• Core deposit growth is a top priority, expected to fund loan growth, with strategies in place to reduce wholesale funding over time.

• Shift in loan portfolio mix from low-return non-customer residential real estate to higher-return commercial loans.

Interest rate and credit environment

• Interest rate sensitivity has been reduced through cash flow hedges and a larger fixed-rate auto loan book; asset sensitivity now aligns with peers.

• Additional hedges may be added in the second half of 2024 as existing ones roll off; short-term CDs have been emphasized to manage risk.

• Credit quality remains solid, with no significant geographic or asset class weaknesses; delinquencies have declined in recent quarters.

• Auto lending will remain in the 10%-15% range of total loans, serving as a risk hedge and margin enhancer, but not expected to become overweight.

• Fee income in mortgage banking and capital markets is sensitive to rates, with potential improvement in 2025 if rates decline and market share increases.