Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q2 2014 Earnings Presentation
14 slides from Associated Banc-corp's earnings presentation, Jul 17, 2014
Slide 1: Associated Banc-Corp 2Q 2014 Earnings Presentation
Exhibit 99.2 ASSOCIATED BANC-CORP 2Q 2014 EARNINGS PRESENTATION JULY 17, 2014
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 Second Quarter Highlights
2014 SECOND QUARTER HIGHLIGHTS Loan Growth drives Solid Earnings • Average loans of $16.6 billion were up $482 million, or 3% from the first quarter Balance Sheet Total average commercial loans grew $398 million from the first quarter Credit card portfolio purchased on June 30, 2014 for $108 million
Slide 4: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION Average Quarterly Loans ($ in billions) 2Q 2014 Average Net Loan Change (+$482 mln) ($ in millions) % Chg $16.6 $16.2 Residential Mortgage $151 +4% $15.7 $2.1 $14.6 $2.2 Mortgage Warehouse $119 +78% $2.5 Total General Commercial Loans $97 +2% $13.0 Commercial & $3.0 Busine
Slide 5: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS Line utilization increased in Commercial & Business Lending Change from 1Q 14 65.0% 64.2% 63.1% Commercial Real Estate (including 61.6% 61.1% construction) 60.4% 60.0% - 260 bps 56.5% 55.0% Commercial & 51.7% Business Lending 50.0% 51.1% 48.8% + 290 bps 50.0% 48.6%
Slide 6: Credit Card Portfolio Purchase
CREDIT CARD PORTFOLIO PURCHASE 55% 45% participation participation 160,000 “Associated Bank” branded card accounts Summary Details: ASBC acquired a 45% participation interest ($99 million) in a credit card portfolio of customers who currently hold “Associated Bank” branded credit card accounts for $
Slide 7: 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) 3.47% 3.50% 3.42% 3.36% 3.31% 3.23% 3.16% 3.13% 3.12% 3.08% $169 <$1 $167 $165 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 $4 <$1 Cost of Interest-bearing Liabil
Slide 8: Noninterest Income Trends
NONINTEREST INCOME TRENDS ($ IN MILLIONS) 1 Core Fee-based Revenue +10% $60 $58 $57 $57 $55 Total Noninterest Income $84 2Q 3Q 4Q 1Q 2Q $76 $74 2013 2013 2013 2014 2014 $71 $72 2 Other Noninterest Income $29 2Q 3Q 4Q 1Q 2Q $19 $19 $17 2013 2013 2013 2014 2014 $13 $12 $8 $6 $4 $5 $10 $10 $10 $10 $7 2
Slide 9: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) Personnel Spend / FTE 2 Trend 4,790 4,699 4,584 4,517 4,431 $100 $98 $101 $98 $98 Total Noninterest Expense $179 $169 $165 $168 $168 2Q 3Q 4Q 1Q 2Q 2013 2013 2013 2014 2014 Personnel Spend FTE Other Non-Personnel Spend Trend $78 2Q 3Q 4Q 1Q 2Q $69 $67 $70 $
Slide 10: Credit Quality Indicators
CREDIT QUALITY INDICATORS ($ IN MILLIONS) $310 $277 $288 $235 $220 $217 $208 $185 $178 $179 1.38% 1.33% 1.17% 1.08% 1.05% 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 Potential Problem Loans Nonaccruals Nonaccruals / Loans 145% 151% 152% $14 127% 131% $5 $5 $5 0.35
Slide 11: EPS, Dividends, and Capital Deployment
EPS, DIVIDENDS, AND CAPITAL DEPLOYMENT EPS and Dividends Paid & ROT1CE Tier 1 Common Equity Ratio Earnings & Dividends Return on Tier 1 per Common Share Common Equity 12.61% 9.9% 12.04% 11.49% 9.6% 10.72% 9.3% $0.28 $0.28 $0.24 6.1% $0.15 2Q 2011 2Q 2012 2Q 2013 2Q 2014 • Current capital levels are
Slide 12: 2014 Second Half Outlook
2014 SECOND HALF OUTLOOK Asset Growth • Full year 2014 annual average loan growth of approximately 8% Deposits / Funding • Mid single digit average deposit and slightly higher other Mix funding growth • NIM compression of a few basis points per quarter Margin • Net interest income growth Noninterest
Slide 13: Appendix
APPENDIX 12
Slide 14: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 Efficiency Ratio Reconciliation: Efficiency ratio (1) 69.01% 71.45% 73.70% 70.41% 69.70% Taxable equivalent adjustment (1.38) (1.50) (1.49) (1.35) (1.32) Asset gains (losses), net (0.01) 0.59 0.80 0.22 0.26 Othe