Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2017 Earnings Presentation
12 slides from Associated Banc-corp's earnings presentation, Apr 20, 2017
Slide 1: First Quarter 2017 Earnings Presentation
FIRST QUARTER 2017 EARNINGS PRESENTATION APRIL 20, 2017
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: First Quarter Update
FIRST QUARTER UPDATE Balance Sheet Management Margin increased 4 basis points Loan to Deposit ratio of 92% Increased residential mortgage and commercial real estate loan growth Fee Businesses Seasonal increase in insurance commissions to $22 million Brokerage and annuity commissions increa
Slide 4: Loan Portfolio – Quarterly Trends
CRE Investor 17% Construction 7% Commercial & business 36% Residential mortgage 33% Home equity 5% Other consumer 2% ($ in millions) $1.4 $1.4 $1.4 $1.3 $1.3 $5.9 $6.1 $6.3 $6.3 $6.6 $4.5 $4.7 $4.9 $4.9 $5.0 $7.1 $7.5 $7.6 $7.4 $7.2 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Home equity & Other consume
Slide 5: Deposit Portfolio – Quarterly Trends
Money market 43% Savings 7% Time deposits 7% Interest- bearing demand 20% Noninterest- bearing demand 23% $1.6 $1.5 $1.6 $1.6 $1.6 $1.4 $1.4 $1.4 $1.5 $1.5 $9.4 $8.7 $9.1 $9.3 $9.2 $3.2 $3.6 $4.2 $4.1 $4.3 $5.0 $5.0 $5.2 $5.3 $5.0 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Time deposits Savings Money m
Slide 6: Net Interest Income and Margin Quarterly Trends
$171 $176 $178 $178 $179 $1 $1 $1 $2 $1 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Interest recoveries, prepayment fees, & deferred fees Net interest income net of interest recoveries, prepayment fees, & deferred fees 2.81% 2.81% 2.77% 2.80% 2.84% 2.00% 2.50% 3.00% 3.50% 3.41% 3.35% 3.35% 3.40% 3.51% 0
Slide 7: Noninterest Income – Quarterly Trends
$4 $4 $9 $12 $5 $9 $4 $4 $7 $8 $4 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Capital market fees, net Portfolio loan sales Mortgage banking, net NONINTEREST INCOME – QUARTERLY TRENDS ($ IN MILLIONS) $65 $67 $66 $63 $67 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Fee-based revenue $80 $83 $82 $95 Insurance
Slide 8: Noninterest Expense – Quarterly Trends
$12 $14 $13 $13 $12 $8 $7 $5 $6 $6 $14 $13 $15 $14 $15 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Occupancy Business development and advertising Other $101 $102 $104 $107 $104 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Personnel NONINTEREST EXPENSE – QUARTERLY TRENDS ($ IN MILLIONS) 1 – The efficiency rat
Slide 9: Credit Quality – Quarterly Trends
1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Oil and Gas $4 $2 $(4) $3 $13 $19 $22 $6 $6 1.4% 1.4% 1.4% 1.4% 1.4% 6.5% 5.6% 5.5% 5.7% 6.7% 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 ALLL / Total Loans Oil and Gas ALLL / Oil and Gas Loans CREDIT QUALITY – QUARTERLY TRENDS ($ IN MILLIONS) $251 $281 $270 $276
Slide 10: Oil and Gas Update
OIL AND GAS UPDATE $477 $451 $398 $446 $413 $150 $176 $171 $75 $78 $129 $129 $127 $147 $134 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Pass Potential Problem Loans Nonaccrual $756 $756 $696 $668 $625 Period End Loans by Credit Quality Oil and Gas Allowance $49 $42 $38 $38 $42 6.5% 5.6% 5.5% 5.7% 6.7% 1
Slide 11: 2017 Outlook
2017 OUTLOOK Balance Sheet Management Mid-to-high single digit annual average loan growth Maintain Loan to Deposit ratio under 100% Improving NIM trend Fee Businesses Improving fee-based revenues Declining mortgage banking revenue Increasing tax credit investment activity Expense Managem
Slide 12: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 11 Efficiency Ratio 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Federal Reserve efficiency ratio 69.01% 69.34% 64.40% 65.35% 66.39% Fully tax-equivalent adjustment (1.37) (1.36) (1.21) (1.25) (1.30) Other intangible amortization (0.20) (0.21) (0.19) (0.20