COMMUNITY COMMITMENT PLAN Summary Report

Transcription

1 2017 COMMUNITY COMMITMENT PLAN Summary Report

2 2017 COMMUNITY COMMITMENT PLAN Letter from the President & Chief Executive Officer Philip B. Flynn President & Chief Executive Officer Throughout our history, Associated Bank has been proud to play an active role in helping our communities grow and prosper. Our success continues to be grounded in a customer-centric strategy that ensures our commitments to all of our stakeholders align. Ultimately, we believe that taking a proactive role in meeting the needs of our communities positions us to better serve our customers, creates opportunity for our colleagues and provides greater value for our shareholders. Our Community Commitment Plan outlines what we aspire to achieve in the areas of lending, investments and services as they relate to minority and low- to moderate-income customers and communities. Lending Investments 5,000+ residential mortgages, or nearly 906 million in loans helping low- to moderate-income and minority families attain homeownership million in subsidy funds to help borrowers reduce interest rates and down payments, and provide closing cost assistance. 128 million in small business loans, encouraging business expansion in emerging communities. 68 million in community development loans to create affordable housing options, provide community services and promote community development. 174 million in investments to provide additional resources to low- to moderateincome and minority communities. 2.4 million in grants to support Community Reinvestment Act programming at various nonprofit organizations. Service 67,000+ volunteer hours, a 1.6 million value including 5,000 hours of qualified Community Reinvestment Act volunteer services and approximately 350 financial education seminars. 1

3 ASSOCIATED BANK Community Partnerships Associated Bank is committed to developing strong partnerships and supporting the work of community leaders, nonprofit organizations, governmental entities and other community representatives for the economic health of our communities. Our continued work with our Community Advisory Councils based in Chicago, Milwaukee and Minneapolis, has helped us extend our reach into underserved markets and work to address some of the most important economic development issues in the markets we serve. We advance these actions with specialized teams that are responsible for leading specific community development efforts. Integral to their success is the company s Director of Community Accountability who drives enterprise-wide initiatives in this space, and our Community Reinvestment Act (CRA) Officer who is responsible for establishing CRA policy and monitoring the Bank s performance in complying with the requirements of the CRA program. These efforts are complemented by the Director of Multi-Cultural and Affordable Lending who is responsible for leading affordable residential lending initiatives for the Bank. In addition, Associated s Multi-Cultural and Affordable Lending team develops partnerships with nonprofit agencies, realtors and other affinity groups to provide homebuyer education and service low- to moderate-income and minority borrowers within the community. These partnerships play a vital role in ensuring we are familiar with the challenges facing our mortgage loan customers and can readily understand, identify and assess their needs. We further expand our reach through the Bank s subsidiary, Associated Community Development, LLC, which offers both equity and lending in underserved areas of Associated markets. Investment initiatives include tax credits for affordable income housing, historical building preservation and various commercial development projects. We re forging strong relationships with individuals and organizations within our markets, and fostering programs that promote economic development in neighborhoods where we live and work. LaDonna Reed Associated Bank Director of Community Accountability A DREAM HOME DOESN T HAVE TO BE A DREAM. We also bring visibility to Associated Bank s community-based lending and assistance programs through specific affirmative marketing outreach programs. In 2017, nearly 1.2 million of our directto-consumer advertising was targeted toward minority and low- to moderate-income consumers. 2

4 2017 COMMUNITY COMMITMENT PLAN Commitment to Lending We recognize that accessing financial services can be intimidating for many people. Connecting them to education, tools and professionals who can help guide them through the decision-making process is essential to minority and low- to moderate-income customers and communities. We use our full array of channels and products to promote homeownership, as well as the revitalization of neighborhoods. Channels for mortgage loan origination and funding include loan officers, branches, loan production offices, third-party originators (mortgage bankers, mortgage brokers and correspondent banks), loan and portfolio purchases, loan-by-phone and online banking. In 2017, Associated Bank provided approximately 906 million in residential loans to low- to moderateincome and minority customers. This represents more than 5,000 residential mortgages helping lowto moderate-income and minority families obtain homeownership. Several of our mortgage products focus on first-time homebuyers, low- to moderate-income borrowers and majority-minority communities. These products provide significant value to qualifying borrowers through direct closing-cost and down-payment subsidies. Through the Homeowners Edge Loan Plus (HELP) program and its successor, the Program for Assisting Today s Homebuyer (PATH), which was introduced in 2017, the company provided more than 10 million in subsidy funds during the year. These funds are used by qualifying buyers to reduce interest rates and down payments, and provide closing cost assistance. We provided 128 million in loans to small businesses in As with residential lending, we use all of our available channels to maximize our reach. Products include conventional business loans, governmentguaranteed loan products and business credit cards. During the year, Associated also provided a total of 68 million in community development loans to create affordable housing options, provide Through the company s broad array of home loan options, as well as financial education, assistance and programs, we strive to revitalize neighborhoods and to provide families better opportunities to be successful homeowners. community services and promote community development in Illinois, Minnesota and Wisconsin. By focusing on the markets we serve, Associated is able to keep investment dollars local, while strengthening communities, building opportunity and changing neighbors lives. Whether working with individuals, families, small businesses or community development organizations, we prudently underwrite loans and carefully consider the borrower s ability to repay, recognizing that extending credit to unqualified borrowers does them and our communities a disservice. 3

5 ASSOCIATED BANK Washington Park Townhomes in Milwaukee are encompassed in the more than 1,500 affordable housing units Associated Community Development, LLC, has financed in less than three years. Lending Goals and Progress * Product/Focus Area Location Measure Three-year Progress Through Percentage Commitment Dec. 31, 2017 Complete Family Residential Mortgages Wisconsin Units in Millions 6, , % 108% Illinois Units in Millions 2, , % 203% Minnesota Units in Millions 1, , % 95% Small Business Entire Footprint Units in Millions 1, , % 99% Community Development Loans Entire Footprint in Millions % *This table states the goals and measures progress for the Community Commitment Plan adopted in 2016 (2016 Plan). The 2016 Plan has been superseded by a Community Commitment Plan for the three years (2018 Plan). The 2018 Plan can be found at 4

6 2017 COMMUNITY COMMITMENT PLAN Access to Services We remain committed to providing minority and low- to moderate-income customers and communities with access to a variety of financial products and services, as well as access to service channels that best meet their needs. The shift to a digital-first environment is becoming an ever-increasing reality. We know that while the majority of our customers still open their accounts in a branch, 75% of consumers shop online first. In 2017, we began a multiphase initiative to boost our online presence, improve the functionality of our website and support consumers in making financial decisions. These improvements have helped the company better target consumers who are actively seeking information and provide them ready access to tools to help them make informed choices about which Associated products and services will best meet their needs. Within our consumer customer base, the majority of transactions are now completed through digital channels. In February 2018, Associated s online and mobile banking services were upgraded to include some of our most requested features, such as fingerprint authentication for mobile sign-in, personal financial management tools and a more user-friendly design. Beyond consideration for these enhancements, the upgrade includes advanced security features and improves our ability to regularly roll out new features in a time- and costefficient manner. Associated Bank branches located in low- to moderate-income census tracts will increase to 28% by mid

7 ASSOCIATED BANK Community Investments Our approach goes beyond providing banking services. We designate 1% of our annual pretax profits for charitable purposes with the majority of that total supporting Community Reinvestment Act (CRA) eligible programs. We surpassed that target in 2017, providing 2.4 million in CRAqualifying contributions to various nonprofit organizations. These efforts are complemented by our colleagues who volunteer their time to help strengthen our communities. In 2017, colleagues provided more than 67,000 hours of volunteer time. That included approximately 5,000 hours of CRA-qualified volunteer services and 350 financial education seminars during the year. We continue to focus on the recruitment, development and retention of minority colleagues, with a goal of reflecting the populations of the communities we serve. These efforts are complemented by the Cultural Awareness Network, one of the company s six colleague resource groups that work to create greater organizational awareness of and take specific actions to address the unique needs of diverse populations within our company and our markets. We are fortunate to have diverse, committed teams of colleagues who are capable, determined and empowered to drive our company forward and deliver on our vision to be the Midwest s premier financial services company Volunteer Highlights 67,000+ or 1.6 million value of volunteer hours logged in ,200 colleague volunteers, with more than 400 volunteering 50 hours or more. 2.4 million in grants to support Community Reinvestment Act programming at various nonprofit organizations. 6

8 2017 COMMUNITY COMMITMENT PLAN Continuing to Invest Helping to ensure the well-being of our communities is an integral part of our strategy. Our efforts will continue to focus on where we can best align our resources and, along with our community partners, address some of the most important economic development issues in the markets we serve. Thanks to the financial strength and the commitments of our colleagues and community partners, we are able to extend our Community Commitment Plan to include 2.4 billion in commitments* from 2018 through Our efforts will continue to focus on where we can best align our resources. This includes leveraging our expertise and financial support to promote affordable housing, provide small-business lending and advance neighborhood development. In closing, I would like to thank our colleagues, community partners, customers and other stakeholders for everything they do to help build and strengthen our communities. Your involvement helps all of our neighbors participate in and share the rewards of living in the great communities we serve. Sincerely, Philip B. Flynn, President & Chief Executive Officer Associated Bank President and CEO Phil Flynn is joined by Governor Scott Walker, Mayor Tom Barrett, MLKEDC Executive Director Leo Ries, President of the MLKEDC Board Ben Johnson and other community dignitaries. In 2017, Associated provided a major grant in support of the Welford Sanders Historic Lofts initiative in Milwaukee. Renovations to this industrial building include affordable rental housing units, commercial space and the new Associated Bank Community Classroom for hosting financial education programming. *We recognize that changes in the level of interest rates and general market conditions may impact our performance. To that end, if the need arises we may adjust our commitments during the course of our Community Commitment Plan. 7

9 2017 COMMUNITY COMMITMENT PLAN Awards and Accolades An Outstanding Customer Experience for the live phone channel 2015, 2016, 2017 J.D. Power J.D. Power 2017 Certified Contact Center Program SM recognition is based on successful completion of an audit and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. For more information, visit #1 Mortgage Lender in Wisconsin¹ Home Mortgage Disclosure Act 47th Largest Broker of U.S. Business² 2017 Business Insurance 2020 Women on Boards Winning W Company Best Banks in America Wisconsin 2017 MONEY Best for Vets: Employers 2017 Military Times Best of the Best Midwest Real Estate News Best of the Best Large Business Elite Award³ National Association for Business Resources Best Practices Agency IIABA Circle of Excellence Agency⁴ 2017 Western National Insurance Group Corporate Social Responsibility Leadership Award Financial Services Roundtable CX Elite Award⁵ 2017 MaritzCX Fannie Mae STAR TM Performer⁶ Five Star Mortgage Professional Milwaukee Magazine Largest Corporate Charitable Contributor in Wisconsin 2016 Milwaukee Business Journal Platinum Million Dollar Lender USDA Rural Development Reflecting Excellence Award 2017 Reflejos Technology Experience and Design Technology Award Event Marketers Top 100 Retirement Plan Advisors PLANADVISOR Top Defined Contribution Advisor Firm 2017 National Association of Plan Advisors Top Ranking Best Banks in Minnesota AdvisoryHQ Top Veteran-Friendly Company U.S. Veterans Magazine Veteran Friendly Workplaces USO Wisconsin 1. The Wisconsin s #1 Mortgage Lender designation is based on information gathered from the Home Mortgage Disclosure Act data compiled annually by the Federal Financial Institutions Examination Council. The results of the data were obtained through RATA Comply, June Rankings based on 2016 brokerage revenue generated by U.S.-based clients. 3. Best of the Best Large Business Elite award is part of Milwaukee s Best and Brightest Companies to Work For program; Associated Bank scored in the top 10% in seven categories, and ranked in the top 1% for compensation, benefits and employee solutions; recruitment, selection and orientation; and diversity and inclusion. 4. Based on performance and growth, Associated Benefits & Risk Consulting placed in the 95th percentile of all Western National partners for overall performance, growth, and partnership over the past six years. 5. The CX Elite Award recognizes excellence in customer experience strategy, execution, and results. 6. Fannie Mae recognized Associated for outstanding mortgage general servicing as part of its Servicer Total Achievement and Rewards (STAR ) Program. General servicing encompasses customer service, loan administration and other areas. 7. The Five Star Mortgage Professional Program is designed to identify mortgage professionals in a given market who satisfy objective criteria that are associated with providing quality services to clients. 8. Presented each year to lenders who have partnered with, and made a significant contribution to, supporting Wisconsin rural residents looking to become homeowners through the USDA Guaranteed Rural Housing (GRH) Program. 9. Associated s Interact with the Pack virtual in-stadium photo experience received a silver award in the business-to-consumer category for best use of a single technology. 10. Based on dollar value of qualified plan assets under administration (AUA), as well as the number of plans under advisement. 11. AdvisoryHQ recognizes banks that are financially sound with strong values and cost-effective financial solutions to fit every budget. Associated Bank was recognized specifically for its wide range of mortgage products. 8

10 Corporate Headquarters 433 Main St. Green Bay, WI AssociatedBank.com Member FDIC. Equal Opportunity Employer. Equal Housing Lender. (7/18) Associated Banc-Corp