Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2019 Earnings Presentation
14 slides from Associated Banc-corp's earnings presentation, Apr 25, 2019
Slide 1: First Quarter 2019 Earnings Presentation
Exhibit 99.2 FIRST QUARTER 2019 EARNINGS PRESENTATION April 25, 2019
Slide 2: Disclaimer
DISCLAIMER 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 plans, objectiv
Slide 3: First Quarter 2019 Update
FIRST QUARTER 2019 UPDATE1 Net income available to common equity of $83 million, or $0.50 per common share Growing Commercial Improving Expense Seasonal Deposit Ongoing Capital and Business Lending Trends Flows Optimization ▪ Average commercial and business ▪ Average deposits increased 1% loans up 4
Slide 4: Loan Portfolio
LOAN PORTFOLIO - QUARTERLY TRENDS1 Average Quarterly Loans Average Net Loan Change (from 4Q 2018) ($ in billions) ($ in millions) YoY General commercial $264 Growth $23.0 $23.0 $22.8 $23.1 $22.1 Power & utilities $108 $7.7 Residential mortgage $52 $7.3 $7.9 $8.0 $8.4 15% Total Commercial & REIT $28
Slide 5: Deposit Portfolio Trends
DEPOSIT PORTFOLIO TRENDS1 Average Quarterly Deposits Avg. Quarterly Network Transaction Deposits ($ in billions) ($ in billions) $24.7 $24.2 $24.6 16% 17% $23.7 $23.6 15% 10% 9% $5.3 $5.4 $5.0 $5.1 $5.1 $3.6 $2.9 $3.4 $2.4 $2.2 $5.0 $4.7 $4.5 $4.7 $4.8 1Q 2015 1Q 2016 1Q 2017 1Q 2018 1Q 2019 Network
Slide 6: Net Interest Income
NET INTEREST INCOME - QUARTERLY TRENDS Net Interest Income Average Yields ($ in millions) 5.51% $226 5.06% 5.19% $5 $224 4.98% 4.62% $5 $219 $5 $2 $1 $2 $216 4.78% 4.86% $1 $4 $3 $1 4.52% 4.56% $210 $1 $2 $1 $2 $2 4.14% $4 $1 3.52% 3.54% 3.32% 3.36% 3.45% 2.78% 2.56% 2.61% 2.70% $214 $211 $213 2.44%
Slide 7: Net Interest Margin
NET INTEREST MARGIN - QUARTERLY TRENDS Quarterly NIM Trends 3Q18 to 4Q18 Walkdown Loan and funding Fed mix, other 3.02%3.03% 3.02% Funds - Day changes Other LIBOR -12 bps BKMU count Prepymts spread 0.13% 0.10% QoQ Accrn & 0.06% 2.92% 2.92% - % 2.90% Prepymts Prepymts 0.03% (0.02%) 0.05% 0.02% and 0.
Slide 8: Noninterest Income
NONINTEREST INCOME - QUARTERLY TRENDS ($ IN MILLIONS) Banking and Wealth Management Fees $52 $52 $50 $51 $49 $93 $4 $4 $4 $5 $90 $91 $4 $88 $10 $9 $10 $10 $9 $84 $16 $16 $17 $16 $15 $21 $20 $21 $20 $20 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Other fee-based rev. Service charges Card-based fees Wealt
Slide 9: Noninterest Expense
NONINTEREST EXPENSE - QUARTERLY TRENDS ($ IN MILLIONS) Period End Branch Count and Average FTE 4,792 4,707 4,637 4,659 4,660 $213 $211 $7 $204 $21 $2 $193 $192 $1 271 237 236 236 233 $80 $78 $78 $75 $71 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Period End Branches Average Full Time Employee Efficiency
Slide 10: Credit Quality
CREDIT QUALITY - QUARTERLY TRENDS ($ IN MILLIONS) Potential Problem Loans Nonaccrual Loans $282 $242 $236 $250 $241 $209 $204 $154 $156 $128 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Net Charge Offs Allowance for Loan Losses to Loans 1.1% 1.1% $12 1.0% 1.0% 1.0%
Slide 11: 2019 Outlook
2019 OUTLOOK ▪ This outlook reflects a stable to improving economy and no Fed Funds rate changes. We may adjust our outlook if, and when, we have more clarity on these factors. ▪ We received regulatory approval for the acquisition of the Wisconsin branch banking operations of Huntington Bank and con
Slide 12: Appendix
APPENDIX
Slide 13: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Efficiency Ratio 1Q19 4Q18 3Q18 2Q18 1Q18 Federal Reserve efficiency ratio 63.32 % 62.39 % 66.12 % 65.77 % 70.76 % Fully tax-equivalent adjustment (0.77)% (0.75)% (0.75)% (0.65)% (0.66)% Other intangible amortization (0.73)% (0.72)% (0.73)% (0.68)% (0
Slide 14: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Net interest income 1Q19 4Q18 3Q18 2Q18 1Q18 Net interest income $ 216 $ 224 $ 219 $ 226 $ 210 Bank Mutual prepayments and other adjustments — (5) (1) (5) (2) Bank Mutual acquisition related purchase loan accretion (1) (2) (4) (5) (4) Other prepayment