Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2015 Earnings Presentation
13 slides from Associated Banc-corp's earnings presentation, Apr 16, 2015
Slide 1: Associated Banc-Corp 1Q 2015 Earnings Presentation
* Exhibit 99.2 * * * * ASSOCIATED BANC-CORP 1Q 2015 EARNINGS PRESENTATION APRIL 16, 2015
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: 2015 First Quarter Highlights
2015 FIRST QUARTER HIGHLIGHTS Solid Earnings Despite Continued Margin Compression • Average loans of $17.8 billion were up $428 million, or 2% from the fourth quarter — Total average commercial loans grew $309 million from the fourth quarter Balance Sheet — Average mortgage loans grew 4% from the fo
Slide 4: Loan Portfolio – Trend and Mix
LOAN PORTFOLIO – TREND AND MIX Average Quarterly Loans ($ in billions) 1Q 2015 Average Net Loan Change (+$428 mln) ($ in millions) % Chg $17.8 $17.4 Residential Mortgage +4% $16.2 $15.4 General Commercial Loans +3% $14.3 Total +13% Oil & Gas Commercial Commercial Real Estate & Business +1% Lending M
Slide 5: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS Line utilization increased in Commercial & Business Lending Change from 4Q 14 Commercial Real Estate (including construction) - 40 bps Commercial & Business Lending +200 bps 4
Slide 6: Net Interest Income and Margin Trends
NET INTEREST INCOME AND MARGIN TRENDS Yield on Interest-earning Assets Net Interest Income & Net Interest Margin ($ in millions) Total Interest-earning Yield Total Loan Yield Cost of Interest-bearing Liabilities +8 bps Net Interest Margin 5
Slide 7: Noninterest Income Trends
NONINTEREST INCOME TRENDS ($ IN MILLIONS) Core Fee-based 1 Revenue Total Noninterest Income Mortgage Banking (net) Income Other Noninterest Income2 1 – Core Fee-based Revenue = Trust service fees plus Service charges on deposit accounts plus Card-based and other nondeposit fees plus Insurance commis
Slide 8: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) Personnel Spend / FTE 2 Trend Total Noninterest Expense Technology 3 Spend Other Non-Personnel Spend 4 69% 68% 69% 70% 69% Efficiency Ratio 1 1 – Efficiency ratio = Noninterest expense, excluding other intangible amortization, divided by sum of taxable equi
Slide 9: Oil and Gas Lending Update
OIL AND GAS LENDING UPDATE • Exclusively focused on the upstream sector (‘Exploration and Production’ or ‘E&P’ sector). — Focused on the small to mid-size independent segment, both public and private companies. — Asset-based loans collateralized by a lien on oil and gas reserves. — Generally, we are
Slide 10: Credit Quality Indicators
CREDIT QUALITY INDICATORS ($ IN MILLIONS) Potential Problems Loans & PPLs to Total Loans Nonaccruals & NA / Total Loans Net Charge Offs & NCOs to Avg Loans ALL to Nonaccruals and Total Loans 9
Slide 11: 2015 Full Year Outlook
2015 FULL YEAR OUTLOOK • High single digit annual average loan growth Balance Sheet • Maintain Loan/Deposit ratio under 100% • Modest compression throughout the year from the first Margin quarter Noninterest • Up mid to upper single digits from 2014 1 Income • Up low single digits from 2014 with a c
Slide 12: Appendix
* * * * * * APPENDIX 11
Slide 13: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Efficiency Ratio Reconciliation: Efficiency ratio (1) 70.41% 69.70% 69.44% 70.33% 70.30% Taxable equivalent adjustment (1.35) (1.32) (1.36) (1.40) (1.42) Asset gains, net 0.22 0.26 1.36 1.05 0.30 Other intangibl