Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2016 Earnings Presentation
12 slides from Associated Banc-corp's earnings presentation, Apr 21, 2016
Slide 1: First Quarter 2016 Earnings Presentation
FIRST QUARTER 2016 EARNINGS PRESENTATION APRIL 21, 2016
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: First Quarter Update
FIRST QUARTER UPDATE 2 Net income available to common equity of $40 million, or $0.27 per common share ENHANCED CUSTOMER EXPERIENCE Improving branch customer satisfaction trends 90% of consumer customers were completely satisfied with their branch experience in the first quarter ORGANIC BALANCE
Slide 4: Loan Portfolio Trends
$1.5 $1.5 $1.4 $1.4 $1.4 $5.2 $5.4 $5.7 $5.8 $5.9 $4.1 $4.1 $4.3 $4.4 $4.5 $7.0 $7.2 $7.1 $6.9 $7.1 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Commercial & Business Commercial Real Estate Residential Mortgage Home Equity & Other Consumer ($20) $0 $11 $12 $75 $91 $96 $115 CRE Investor 18% Construction 6
Slide 5: Credit Quality Trends
CREDIT QUALITY TRENDS ($ IN MILLIONS) $180 $140 $180 $178 $251 $39 $60 $84 $124 $150 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Potential Problem Loans - Oil and Gas $174 $149 $134 $158 $157 $11 $13 $20 $129 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Nonaccrual Loans - Oil and Gas Potential Problem Loans
Slide 6: Oil and Gas Lending Update
OIL AND GAS LENDING UPDATE $780 $757 $758 $752 $756 3.5% 3.4% 3.8% 5.6% 6.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% $500 $550 $600 $650 $700 $750 $800 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Period End Oil & Gas Loans Related Reserves % ($ in millions) Borrowing base redeterminati
Slide 7: Oil and Gas Credit Profile
OIL AND GAS CREDIT PROFILE ($ IN MILLIONS) Oil and Gas Loans Outstanding 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Pass $706 $658 $587 $522 $402 Criticized / Classified 74 88 158 210 225 Nonaccrual - 11 13 20 129 Total Oil and Gas Loans $780 $757 $758 $752 $756 Potential Problem Loans (PPLs) 1Q 2015 2
Slide 8: Net Interest Income and Margin Trends
3.20% 3.15% 3.13% 3.14% 3.16% 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 $140 $144 $148 $153 $157 $161 $165 $169 $174 $178 Yield on Interest-earning Assets Net Interest Income & Net Interest Margin 2.89% 2.83% 2.82% 2.82% 2.81% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $4 $8 $12 $16 $20
Slide 9: Noninterest Income Trends
$7 $10 $7 $8 $4 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 NONINTEREST INCOME TRENDS ($ IN MILLIONS) $9 $10 $9 $12 $14 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Mortgage Banking (net) Income $64 $66 $64 $63 $65 $16 $20 $16 $20 $18 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Mortgage Banking (net) and Other N
Slide 10: Noninterest Expense Trends
$21 $22 $21 $20 $20 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) $53 $52 $50 $56 $53 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Technology and Equipment Spend Other Non-Personnel Spend2 1 – The fully tax-equivalent efficiency ratio is a non-GAAP financial measure,
Slide 11: 2016 Outlook
BALANCE SHEET High single digit annual average loan growth Maintain Loan to Deposit ratio under 100% NET INTEREST MARGIN In the absence of Federal Reserve action to raise rates, NIM to dip into the 2.75% to 2.80% range NONINTEREST INCOME Approximately flat to prior year, excluding investment
Slide 12: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Efficiency Ratio Reconciliation 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Federal Reserve efficiency ratio 70.26% 70.23% 68.85% 70.49% 69.01% Fully tax-equivalent adjustment (1.41) (1.35) (1.38) (1.52) (1.37) Other intangible amortization (0.32) (0.35)