Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2018 Earnings Presentation
14 slides from Associated Banc-corp's earnings presentation, Oct 18, 2018
Slide 1: Third Quarter 2018 Earnings Presentation
Exhibit 99.2 THIRD QUARTER 2018 EARNINGS PRESENTATION October 18, 2018
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: Third Quarter 2018 Update
THIRD QUARTER 2018 UPDATE1 Net income available to common equity of $84 million, or $0.48 per common share or $0.49 per common share, excluding acquisition related costs2 Seasonal Deposit Improving Expense Favorable Credit Ongoing Capital Inflows Trends Results Optimization ▪ Average deposits increa
Slide 4: Loan Portfolio - Quarterly Trends
LOAN PORTFOLIO - QUARTERLY TRENDS1 Average Quarterly Loans Average Net Loan Change (from 2Q 2018) ($ in billions) ($ in millions) Power & utilities $74 $23.0 $23.0 $22.1 $20.9 $20.9 General commercial $57 Total Commercial & $7.7 $7.9 Oil and gas $40 business loans: $7.3 + $242 million $7.3 $7.2 (+3%
Slide 5: CRE Trends
CRE TRENDS Total CRE Commitments and Outstanding CRE Unfunded Commitments Balances ($ in billions) ($ in billions) Total commitments have increased... ...but unfunded commitments have become a larger percentage of total commitments $6.6 17.8% 15.4% 15.5% $5.9 $5.7 $5.4 $5.0 $4.9 $1.2 $0.9 $0.9 3Q 20
Slide 6: Deposit Portfolio - Quarterly Trends
DEPOSIT PORTFOLIO - QUARTERLY TRENDS1 Average Quarterly Deposits Quarter-end Loan to Deposit Ratio ($ in billions) $24.7 98% $23.7 $23.6 96% $22.4 $22.2 96% 94% 94% $5.3 95% $5.1 $5.1 $5.0 $5.1 91% 90% $5.0 89% $4.5 $4.7 $4.0 $4.2 1Q 2Q 3Q 4Q $2.0 Historical Quarter-end Range 2014 - 2018 2018 $2.4 $
Slide 7: Net Interest Income and Margin - Quarterly Trends
NET INTEREST INCOME AND MARGIN - QUARTERLY TRENDS Average Yields Net Interest Income & Net Interest Margin ($ in millions) 3.02% 2.92% 2.92% 5.06% 4.98% 2.84% 4.62% 2.79% $226 4.02% 4.05% $5 4.52% 4.56% $2 $219 $5 $1 4.14% $1 3.86% 3.79% $210 $4 $2 3.36% 3.45% $1 3.26% 3.18% 3.32% $4 2.56% 2.61% 2.4
Slide 8: Net Interest Margin Walkforward and Outlook
NET INTEREST MARGIN WALKFORWARD AND OUTLOOK Q2 to Q3 Net Interest Margin Walkforward Net Interest Margin Decomposition 2Q 2018 Reported Net Interest Margin 3.02% - Bank Mutual purchase loan related items 2.95% Prepayments and other adjustments -0.05% 0.04% Purchased loan accretion -0.01% 0.02% 2.83%
Slide 9: Noninterest Income - Quarterly Trends
NONINTEREST INCOME - QUARTERLY TRENDS ($ IN MILLIONS) Capital market fees, net Bank owned life insurance Mortgage banking, net $93 $90 $19 $88 $86 $85 $15 $7 $13 $15 $13 $3 $4 $3 $4 $5 $5 $5 $7 $5 $7 $6 $6 $3 $4 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 Trust, Insurance, and Brokerage Income $75 $73 $
Slide 10: Noninterest Expense - Quarterly Trends
NONINTEREST EXPENSE - QUARTERLY TRENDS ($ IN MILLIONS) Period End Branch Count and Average FTE 4,792 4,637 4,707 0.66% 0.63% 4,324 4,303 0.61% 0.61% 0.59% 271 214 213 237 236 $213 $211 $7 $204 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 $2 $21 Period End Branches Average Full Time Employee $1 Efficiency
Slide 11: Bank Mutual Expense Detail
BANK MUTUAL EXPENSE DETAIL Integration Completed ▪ Operational wind down completed during the third quarter Expected Total Acquisition Related 1 Costs Announced Recorded Costs Total Costs 1Q 2018 2Q 2018 3Q 2018 ($ in millions) Change of control and severance $10 $7 $(1) $1 7 Merger advisors and con
Slide 12: Credit Quality - Quarterly Trends
CREDIT QUALITY - QUARTERLY TRENDS ($ IN MILLIONS) Potential Problem Loans Nonaccrual Loans $282 $259 $40 $242 $236 $39 $34 $34 $211 $209 $209 $204 $177 $154 $92 $77 $69 $45 $40 $242 $32 $220 $208 $202 $137 $119 $132 $140 $159 $122 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 3Q 2017 4Q 2017 1Q 2018 2Q 20
Slide 13: Appendix
APPENDIX
Slide 14: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Efficiency Ratio YTD 3Q14 YTD 3Q15 YTD 3Q16 YTD 3Q17 YTD 3Q18 Federal Reserve efficiency ratio 70.19 % 69.78 % 67.51 % 65.64 % 67.50 % Fully tax-equivalent adjustment (1.35)% (1.38)% (1.32)% (1.27)% (0.69)% Other intangible amortization (0.41)% (0.34)