Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2011 Earnings Presentation
11 slides from Associated Banc-corp's earnings presentation, Oct 20, 2011
Slide 1: Associated Banc-Corp 3Q 2011 Earnings Presentation
Exhibit 99.2 Associated Banc-Corp 3Q 2011 Earnings Presentation October 20, 2011
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: Third Quarter 2011 Highlights
Third Quarter 2011 Highlights • Net income to common shareholders of $34 million or $0.20 per share • Pre-tax income improved 33%, or $15 million and net income to common shareholders improved 33%, or $8 million from the prior quarter • Total loans of $13.5 billion were up 3% from the end of the sec
Slide 4: Loan Portfolio Growth and Composition
Loan Portfolio Growth and Composition Total Loans of $13.5 billion at September 30, 2011 Total Loans ($ in billions) Loan Mix – 4Q 2008 vs 3Q 2011 $16.5 4Q 2008 Consumer Peak Loans (4Q 2008) $16.3 billion 5% CRE Investor Home Equity 14% 18% Construction 14% $15.0 +3% QoQ Res Mtg 14% Commercial & $13
Slide 5: Managing the Cost of Funds and Customer Funding Levels
Managing the Cost of Funds and Customer Funding Levels Cost of Money Market Deposits Net Customer Deposits and Funding 0.54% ($ in billions) 0.47% 0.37% $15.7 0.33% 0.30% $6.8b $6.0b $5.1b $5.0b $5.1b $15.0 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 $14.7 $14.6 Cost of Interest-Bearing Liabilities 1.03
Slide 6: Continuing Decline in Potential Problem Loans
Continuing Decline in Potential Problem Loans ($ in millions) YoY 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 Change Commercial and industrial $ 373,955 $ 354,284 $ 348,949 $ 229,407 $ 207,351 (45%) Commercial real estate 553,126 492,778 465,376 382,056 392,737 (29%) Real estate - construction 175,817 9
Slide 7: Significant Improvements in Credit Quality Indicators
Significant Improvements in Credit Quality Indicators ($ in millions) 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 Provision for loan losses $ 64.0 $ 63.0 $ 31.0 $ 16.0 $ 4.0 Net charge offs $ 109.9 $ 108.2 $ 53.4 $ 44.5 $ 30.2 ALLL/Total loans 4.22% 3.78% 3.59% 3.25% 2.96% ALLL/Nonaccruals 71.72% 83.02%
Slide 8: Maintaining a Strong Capital Profile
Maintaining a Strong Capital Profile 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 ASBC Capital Ratios Stockholders’ equity / assets 14.21% 14.50% 14.88% 13.60% 13.01% Tangible common equity / tangible assets 8.03% 8.12% 8.42% 8.49% 8.77% Tangible equity / tangible assets 10.41% 10.59% 10.93% 9.71% 9.07%
Slide 9: Summary
Summary 3Q 2011 – Solid third quarter results, with EPS of $0.20 per common share – Loan portfolio grew 3% from the second quarter to $13.5 billion, with strong growth from major segments – Credit continues to improve – Increasing pre-tax income, up 33% from prior quarter Remainder of 2011 – Positio
Slide 10: Deposit and Funding Portfolio Trends
Deposit and Funding Portfolio Trends ($ in thousands) Period End Deposit and Customer Funding Composition Jun 11 vs Sep 11 Cost of Funds Jun 30, 2011 Sep 30, 2011 $ Change % Change 3Q 2011 Demand $ 3,218,722 $ 3,711,570 492,848 15% Savings 1,007,337 1,013,195 5,858 1% 0.11 % Interest-bearing demand
Slide 11: Loan Portfolio Trends
Loan Portfolio Trends ($ in thousands) Period End Loan Composition Jun 11 vs Sep 11 Cost of Funds Jun 30, 2011 Sep 30, 2011 $ Change % Change 3Q 2011 Commercial and industrial $ 3,202,301 $ 3,360,502 158,201 5% Lease financing 54,001 54,849 848 2% Commercial real estate - owner occupied 1,030,060 1,