Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2013 Earnings Presentation
10 slides from Associated Banc-corp's earnings presentation, Oct 17, 2013
Slide 1: Associated Banc-Corp 3Q 2013 Earnings Presentation
Exhibit 99.2 ASSOCIATED BANC-CORP 3Q 2013 EARNINGS PRESENTATION OCTOBER 17, 2013
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: Highlights
HIGHLIGHTS Solid Earnings Despite Mortgage Banking Income Headwinds Net Income • Net income available to common shareholders of $44 million or $0.27 per share & • YTD Return on Tier 1 Common Equity of 9.8%, compared to 9.4% for YTD 2012 ROT1CE • Average loans of $15.7 billion were flat to the second
Slide 4: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION Average Loans of $15.7 billion for Third Quarter 2013 Average Quarterly Loans ($ in billions) 3Q 2013 Average Net Loan Change Peak Average Loans (1Q 2009) $16.4 billion Loan Mix – 3Q 2013 (Average) 3
Slide 5: Growing Net Interest Income While Margin Compresses
GROWING NET INTEREST INCOME WHILE MARGIN COMPRESSES Yield on Interest-earning Assets Net Interest Income & Net Interest Margin ($ in millions) Cost of Interest-bearing Liabilities 4
Slide 6: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Efficiency Ratio1 Trend Noninterest Income -$71 mm in 3Q, down $13 mm from 2Q 3Q Var Key Driver(s) Mortgage ($16 mm) • Lower gains and volumes Banking Insurance $2 mm • Normalized revenue Revenue compared to prior quarter Expense Trend ($ in mm) Asset Gain/Loss $2 mm •
Slide 7: Improvement in Credit Quality Indicators
IMPROVEMENT IN CREDIT QUALITY INDICATORS ($ IN MILLIONS) 6
Slide 8: Strong Capital Profile & Sustained Earnings
STRONG CAPITAL PROFILE & SUSTAINED EARNINGS Tier 1 Common Equity Ratio Net Income Available to Common & ROT1CE Net Income Available Return on Tier 1 to Common Common Equity ($ in millions) • Current capital levels are well in excess of “well-capitalized” regulatory benchmarks – Existing capital leve
Slide 9: Focus on Efficiency Initiatives
FOCUS ON EFFICIENCY INITIATIVES On October 10, we announced actions to refine our presence within our footprint, gain efficiencies, and position ourselves for the future. • Consolidating 8 additional branches in Wisconsin and Illinois Branch • Distribution optimization based on branch locations, tra
Slide 10: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS YTD 2013 YTD 2012 3Q 2013 2Q 2013 1Q 2013 4Q 2012 3Q 2012 Efficiency Ratio Reconciliation: Efficiency ratio (1) 70.11% 72.65% 71.10% 69.54% 69.74% 73.71% 72.81% Taxable equivalent adjustment (1.44) (1.62) (1.49) (1.39) (1.46) (1.57) (1.61) Asset gains