Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2019 Earnings Presentation
15 slides from Associated Banc-corp's earnings presentation, Oct 24, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Exhibit 99.2 THIRD QUARTER 2019 EARNINGS PRESENTATION October 24, 2019
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 2019 Update
THIRD QUARTER 2019 UPDATE1 Net income available to common equity of $80 million, or $0.49 per common share, or $0.50 per common share excluding acquisition related costs2 Improving Credit Growing Low-cost De-leveraging Ongoing Capital Quality Deposits Continues Optimization ▪ Provision for credit lo
Slide 4: 2019 Year to Date
2019 YEAR TO DATE1 ($ in billions) Total loans Loan and deposit growth... $24.0 $24.9 ▪ Loans CAGR: 6% Loan and $21.8 ▪ 2019 year-to-date average total loan compound annual growth rate of 6% since same period of $22.7 $23.2 Total deposits Deposit Growth $20.5 ▪ 2017 Deposits CAGR: 7% ▪ Growth from 2
Slide 5: Loan Portfolio - Quarterly Trends
LOAN PORTFOLIO - QUARTERLY TRENDS Average Quarterly Loans Average Net Loan Change (from 2Q 2019) ($ in billions) ($ in millions) YoY Real estate construction $65 $23.4 Growth $23.0 $22.8 $23.1 $23.3 Mortgage warehouse $33 $7.9 $8.0 $8.4 $8.6 $8.5 7% Home equity & other consumer $32 REIT $3 $(14) Gen
Slide 6: Commercial Loan Management
COMMERCIAL LOAN MANAGEMENT1 Commercial Loans as Oil & Gas Loans Commercial Real Estate Percentage of Total Loans ($ in millions) ($ in billions) Commercial and Business ...while we continue to de- ...and Commercial Real Lending remains stable... risk our Oil & Gas Estate has rebounded portfolio... 5
Slide 7: Deposit Portfolio Trends
DEPOSIT PORTFOLIO TRENDS Average Quarterly Deposits Average Funding Change (from 2Q 2019) ($ in billions) ($ in millions) $25.1 $25.2 $24.7 $24.2 $24.6 Interest-bearing demand $468 Lower- $5.3 cost $5.3 $5.0 $5.1 $5.4 Savings $299 funding +$1.0 billion $4.7 $5.0 $5.5 Noninterest-bearing demand $235
Slide 8: Repositioning Funding
REPOSITIONING FUNDING1 FHLB Advances and Network Quarter-end Low-cost Deposit Mix Transaction Deposits Checking and Savings ($ in billions) represent 55% 27% 23% 21% 11% 12% 6% $3.6 Money market Savings Noninterest-bearing demand Network transaction deposits $2.9 $2.9 Interest-bearing demand Time de
Slide 9: Investment Securities Portfolio Trends
INVESTMENT SECURITIES PORTFOLIO TRENDS Portfolio and Yield Trends (Quarterly) Investments / Average Earning Assets ($ in billions) 3.68% 3.73% 3.74% 3.77% 3.78% 24% 23% 23% 22% 2.26% 2.29% 2.34% 2.36% 2.33% 20% 3Q 2015 3Q 2016 3Q 2017 3Q 2018 3Q 2019 $6.9 $6.8 $6.8 $6.5 $6.0 Portfolio Fair Value Com
Slide 10: Net Interest Income and Margin - Quarterly Trends
NET INTEREST INCOME AND MARGIN- QUARTERLY TRENDS Net Interest Income & Net Interest Margin Average Yields ($ in millions) 3.02% 5.51% 2.92% 2.90% 2.87% 2.81% 5.19% 5.19% 4.98% 4.92% 4.86% $224 4.78% 4.79% 4.56% 4.49% $219 $7 $216 $214 3.45% 3.52% 3.54% 3.47% $5 $2 3.29% $3 $206 $2 2.78% 2.81% 2.81%
Slide 11: Noninterest Income Trends
NONINTEREST INCOME TRENDS ($ IN MILLIONS) Mortgage Banking, Net $101 $96 $11 $91 $88 $9 $84 $5 $4 $3 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 $17 $15 $15 $16 $17 Wealth Management Fees1 $20 $21 $62 $62 $21 $20 $21 $50 $49 $47 $25 $22 $21 $23 $21 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 YTD 15 YTD 16 Y
Slide 12: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) Efficiency Ratio2 69.8% $204 $201 67.5% 67.5% $2 $193 $198 $192 $4 $2 $1 68.1% 65.6% 64.2% 66.0% $78 $71 $76 64.2% $78 $71 62.9% 61.9% YTD 15 YTD 16 YTD 17 YTD 18 YTD 19 Federal Reserve efficiency ratio Adjusted efficiency ratio Restructuring Plan $124 $117
Slide 13: Credit Quality - Quarterly Trends
CREDIT QUALITY - QUARTERLY TRENDS ($ IN MILLIONS) Potential Problem Loans Nonaccrual Loans $236 $250 $241 $166 $154 $156 $167 $133 $128 $129 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Net Charge Offs and Provision1 Allowance for Loan Losses to Loans $20 $12 $13 $
Slide 14: Appendix
APPENDIX
Slide 15: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS YTD Sep YTD Sep YTD Sep YTD Sep YTD Sep Efficiency Ratio 2019 2018 2017 2016 2015 Federal Reserve efficiency ratio 64.18 % 67.50 % 65.64 % 67.51 % 69.78 % Fully tax-equivalent adjustment (0.83)% (0.69)% (1.27)% (1.32)% (1.38)% Other intangible amortiz