Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q4 2016 Earnings Presentation
18 slides from Associated Banc-corp's earnings presentation, Jan 19, 2017
Slide 1: Fourth Quarter 2016 Earnings Presentation
FOURTH QUARTER 2016 EARNINGS PRESENTATION JANUARY 19, 2017 Exhibit 99.2
Slide 2: Forward-Looking Statements
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
Slide 3: 2016 Highlights
2016 HIGHLIGHTS Balance Sheet Management Loans reached $20 billion at year end; full year margin of 2.80% Average loans were up $1.4 billion, or 8% from 2015 Average deposits were up $1.1 billion, or 6% from 2015 Fee Businesses Capital markets increased significantly year over year Mortgag
Slide 4: Loan Portfolio – Annual Trends
($148) ($82) ($19) $76 $218 $233 $502 $618 $1.8 $1.6 $1.5 $1.5 $1.4 $4.4 $4.6 $4.9 $5.5 $6.2 $3.4 $3.7 $4.0 $4.2 $4.7 $5.1 $5.8 $6.5 $7.0 $7.4 2012 2013 2014 2015 2016 Home equity & Other consumer Residential mortgage Commercial real estate Commercial & business CRE Investor 18% Construction 6% Comm
Slide 5: Loan Portfolio – Quarterly Trends
CRE Investor 18% Construction 7% Commercial & business 37% Residential mortgage 31% Home equity 5% Other consumer 2% ($ in millions) $1.4 $1.4 $1.4 $1.4 $1.3 $5.8 $5.9 $6.1 $6.3 $6.3 $4.4 $4.5 $4.7 $4.9 $4.9 $6.9 $7.1 $7.5 $7.6 $7.4 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Home equity & Other consume
Slide 6: Deposit Portfolio – Annual Trends
$2.2 $1.8 $1.6 $1.6 $1.6 $1.1 $1.2 $1.2 $1.3 $1.4 $6.1 $7.3 $7.6 $9.2 $9.1 $2.1 $2.8 $3.0 $3.2 $3.8 $3.9 $4.2 $4.2 $4.5 $5.1 2012 2013 2014 2015 2016 Time deposits Savings Money market Interest-bearing demand Noninterest-bearing demand DEPOSIT PORTFOLIO – ANNUAL TRENDS Cumulative Growth from 2012 Av
Slide 7: Deposit Portfolio – Quarterly Trends
$1.6 $1.6 $1.5 $1.6 $1.6 $1.4 $1.4 $1.4 $1.4 $1.5 $9.5 $9.4 $8.7 $9.1 $9.3 $3.2 $3.2 $3.6 $4.2 $4.1 $5.0 $5.0 $5.0 $5.2 $5.3 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Time deposits Savings Money market Interest-bearing demand Noninterest-bearing demand Money market 43% Savings 7% Time deposits 7% Noni
Slide 8: Credit Quality – Annual Trends
$253 $185 $177 $158 $128 $20 $147 2012 2013 2014 2015 2016 Oil and Gas 1.9% 1.7% 1.5% 1.5% 1.4% 5.6% 5.7% 2012 2013 2014 2015 2016 ALLL / Total Loans Oil and Gas ALLL / Oil and Gas Loans CREDIT QUALITY – ANNUAL TRENDS ($ IN MILLIONS) $361 $235 $190 $178 $276 $124 $75 2012 2013 2014 2015 2016 Oil and
Slide 9: Credit Quality – Quarterly Trends
4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Oil and Gas $8 $4 $2 $(4) $3 $13 $19 $22 $6 1.5% 1.4% 1.4% 1.4% 1.4% 5.6% 6.5% 5.6% 5.5% 5.7% 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 ALLL / Total Loans Oil and Gas ALLL / Oil and Gas Loans CREDIT QUALITY – QUARTERLY TRENDS ($ IN MILLIONS) $178 $251 $281 $270
Slide 10: Oil and Gas Update
OIL AND GAS UPDATE $608 $477 $451 $398 $446 $124 $150 $176 $171 $75 $20 $129 $129 $127 $147 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Pass Potential Problem Loans Nonaccrual $752 $756 $756 $696 $668 Period End Loans by Credit Quality Oil and Gas Allowance $42 $49 $42 $38 $38 5.6% 6.5% 5.6% 5.5% 5.7% 4
Slide 11: Net Interest Income and Margin Annual Trends
$626 $646 $681 $676 $707 2012 2013 2014 2015 2016 Net interest income 3.30% 3.17% 3.08% 2.84% 2.80% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 $44 $48 $52 $56 $60 $64 $68 $72 $76 $80 $84 $88 $92 $96 $100 $104 $108 $112 $116 $120 $124 $128 $132 $136
Slide 12: Net Interest Income and Margin Quarterly Trends
2.82% 2.81% 2.81% 2.77% 2.80% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 $44 $48 $52 $56 $60 $64 $68 $72 $76 $80 $84 $88 $92 $96 $100 $104 $108 $112 $116 $120 $124 $128 $132 $136 $140 $144 $148 $152 $156 $160 $164 $168 $172 $176 $180 $169 $171 $176
Slide 13: Noninterest Income – Annual Trends
$218 $222 $225 $253 $261 2012 2013 2014 2015 2016 Fee-based revenue NONINTEREST INCOME – ANNUAL TRENDS ($ IN MILLIONS) $323 $64 $49 $21 $32 $38 $16 $16 $13 $15 $22 2012 2013 2014 2015 2016 Capital market fees, net Mortgage banking, net $47 $44 $44 $75 $81 2012 2013 2014 2015 2016 $316 $291 $329 $353
Slide 14: Noninterest Income – Quarterly Trends
$8 $4 $4 $9 $12 $9 $5 $4 $4 $7 $8 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Capital market fees, net Portfolio loan sales Mortgage banking, net NONINTEREST INCOME – QUARTERLY TRENDS ($ IN MILLIONS) $62 $65 $67 $66 $63 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Fee-based revenue $92 $83 $83 $82 Insurance
Slide 15: Noninterest Expense – Annual Trends
$381 $397 $390 $405 $415 2012 2013 2014 2015 2016 Personnel NONINTEREST EXPENSE – ANNUAL TRENDS ($ IN MILLIONS) $685 $67 $75 $80 $84 $79 2012 2013 2014 2015 2016 $684 $680 $698 $703 Technology and Equipment Efficiency Ratio1 1 – The efficiency ratio as defined by the Federal Reserve guidance is noni
Slide 16: Noninterest Expense – Quarterly Trends
$15 $14 $13 $15 $14 $8 $8 $7 $5 $6 $15 $12 $14 $13 $13 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Other Business development and advertising Occupany $100 $101 $102 $104 $107 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Personnel NONINTEREST EXPENSE – QUARTERLY TRENDS ($ IN MILLIONS) 1 – FTE = Average full
Slide 17: 2017 Outlook
2017 OUTLOOK Balance Sheet Management Mid-to-high single digit annual average loan growth Maintain Loan to Deposit ratio under 100% Stable to improving NIM trend, assuming additional Federal Reserve action to raise rates Fee Businesses Improving fee-based and capital markets revenues Decli
Slide 18: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 17 Efficiency Ratio 2012 2013 2014 2015 2016 Federal Reserve efficiency ratio 73.21% 71.14% 70.29% 69.96% 66.95% Fully tax-equivalent adjustment (1.59) (1.45) (1.35) (1.41) (1.29) Other intangible amortization (0.44) (0.42) (0.39) (0.31) (0.20) Fully