Slide 1: Associated Banc-Corp 4Q 2014 Earnings Presentation
Exhibit 99.2 ASSOCIATED BANC-CORP 4Q 2014 EARNINGS PRESENTATION JANUARY 22, 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: 2014 Highlights
2014 HIGHLIGHTS Solid Earnings with Continued Balance Sheet Growth • Average loans of $16.8 billion were up 8% from 2013 Commercial up 10% and Residential Mortgage up 13% from last year Balance Sheet • Average Deposits of $17.6 billion were up 1% from 2013 Average checking balances up 2% from last y
Slide 4: Loan Portfolio – Annual Trend
LOAN PORTFOLIO – ANNUAL TREND Average Annual Loans ($ in billions) 2014 Average Net Loan Change (from 2013) ($ in millions) % Chg $16.8 $15.7 Residential Mortgage +13% $14.7 Commercial Real Estate +8% $13.2 $13.3 Oil & Gas +71% Total General Commercial Loans Commercial +5% & Business Power & Utiliti
Slide 5: Loan Portfolio – Quarterly Trend
LOAN PORTFOLIO – QUARTERLY TREND Average Quarterly Loans ($ in billions) 4Q 2014 Average Net Loan Change (+$246 mln) ($ in millions) % Chg $17.1 $17.4 $16.6 Residential Mortgage +4% $16.2 $15.7 General Commercial Loans +1% Total Commercial Real Estate Commercial +1% & Business Oil & Gas Lending +5%
Slide 6: Oil and Gas Lending
OIL AND GAS LENDING • Associated Bank’s Oil & Gas business is focused exclusively on the upstream sector which is also referred to as the ‘Exploration and Production’ or ‘E&P’ sector. • We focus on the small to mid-size independent segment, both public and private. We are an asset- based lender wher
Slide 7: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS Line utilization increased in Commercial & Business Lending Change from 3Q 14 Commercial Real Estate (including construction) - 80 bps Commercial & Business Lending - 60 bps 6
Slide 8: Growing Net Interest Income While Margin Compresses
GROWING NET INTEREST INCOME WHILE MARGIN COMPRESSES Yield on Interest-earning Assets Net Interest Income & Net Interest Margin ($ in millions) Total Interest-earning Yield Total Loan Yield Cost of Interest-bearing Liabilities flat 7
Slide 9: Noninterest Income Annual Trends
NONINTEREST INCOME ANNUAL TRENDS ($ IN MILLIONS) Core Fee-based1 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
Slide 10: Noninterest Income Quarterly Trends
NONINTEREST INCOME QUARTERLY TRENDS ($ IN MILLIONS) Core Fee-based1 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 Insuran
Slide 11: Noninterest Expense Annual Trends
NONINTEREST EXPENSE ANNUAL TRENDS ($ IN MILLIONS) Personnel Spend / FTE 2 Trend Total Noninterest Expense Technology 3 Spend Other Non-Personnel Spend 4 62% 70% 69% 70% 69% Efficiency Ratio 1 1 – Efficiency ratio = Noninterest expense, excluding other intangible amortization, divided by sum of taxab
Slide 12: Noninterest Expense Quarterly Trends
NONINTEREST EXPENSE QUARTERLY TRENDS ($ IN MILLIONS) Personnel Spend / FTE 2 Trend Total Noninterest Expense Technology 3 Spend Other Non-Personnel Spend 4 73% 69% 68% 69% 70% Efficiency Ratio 1 1 – Efficiency ratio = Noninterest expense, excluding other intangible amortization, divided by sum of ta
Slide 13: Credit Quality Indicators
CREDIT QUALITY INDICATORS ($ IN MILLIONS) 12
Slide 14: Insurance Business Acquisition
INSURANCE BUSINESS ACQUISITION • On January 16, 2015, Associated Banc-Corp announced its agreement to acquire Ahmann & Martin Co., a risk and employee benefits consulting firm based in Minnesota. The firm will be merged into Associated Financial Group, our insurance brokerage subsidiary. – After adj
Slide 15: 2015 Outlook
2015 OUTLOOK • High single digit annual average loan growth Balance Sheet • Maintain Loan/Deposit ratio under 100% • NIM for 1Q 2015 expected to be approximately 2.95% with Margin modest compression throughout the year Noninterest • Up mid to upper single digits from 2014 1 Income • Up low single di
Slide 16: Appendix
* * * * * * * * * * APPENDIX 15
Slide 17: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Efficiency Ratio Reconciliation: Efficiency ratio (1) 73.70% 70.41% 69.70% 69.44% 70.33% Taxable equivalent adjustment (1.49) (1.35) (1.32) (1.36) (1.40) Asset gains, net 0.80 0.22 0.26 1.36 1.05 Other intangibl