Associated Banc-corp · NYSE:ASB

Associated Banc-corp — Investor Presentation (November 2015)

23 slides from Associated Banc-corp's investor presentation, Nov 3, 2015

  1. Slide 1: Investor Presentation Fourth Quarter 2015

    INVESTOR PRESENTATION FOURTH QUARTER 2015 ASSOCIATED BANC-CORP

  2. 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

  3. Slide 3: Our Footprint and Franchise

    OUR FOOTPRINT AND FRANCHISE 1 – Period end as of September 30, 2015; Loan pie chart excludes $0.4 billion installment and credit card portfolio 2 – Includes Missouri, Indiana, Ohio, Michigan and Iowa 1861 1999 2006 1987 2011 2011 2012 Deposits > $2 billion > $1 billion > $300 million 2  Largest ban

  4. Slide 4: Fastest Growing Bank in Wisconsin Gained Deposit Market Share

    FASTING GROWING BANK IN WISCONSIN GAINED DEPOSIT MARKET SHARE ACROSS OUR BRANCH FOOTPRINT1 3  Our continued focus on the customer experience has allowed us to gain market share in a competitive and transforming industry  Added $2 billion in total deposits1  This growth trend continued in the thir

  5. Slide 5: Attractive Midwest Markets

    ATTRACTIVE MIDWEST MARKETS We Serve a Large and Growing Market…  Our footprint covers ~ 20% of the U.S. population1  Our footprint is estimated to have contributed ~ 30% of the country’s recent population growth1 …with Favorable Employment Dynamics  Wisconsin, Michigan, Minnesota, Indiana, Iowa,

  6. Slide 6: Growing the Loan Portfolio

    $4.1 $4.3 $5.3 $5.9 $6.7 $7.1 $3.4 $3.0 $3.4 $3.8 $4.0 $4.3 $2.8 $4.0 $4.4 $4.5 $4.9 $5.7 $2.6 $2.1 $1.8 $1.5 $1.5 $1.4 3Q 2010 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 Commercial & Business Commercial Real Estate Residential Mortgage Home Equity & Installment GROWING THE LOAN PORTFOLIO (AVERAGE BALA

  7. Slide 7: Year Over Year Loan Growth

    $(77) $241 $437 $711 YEAR OVER YEAR LOAN GROWTH AVERAGE LOAN GROWTH OF $1.3 BILLION, OR 8% FROM THIRD QUARTER 2014 ($ IN MILLIONS) 6 Home Equity & Installment Commercial Real Estate Residential Mortgage Commercial & Business +6% +14% +7% (5%) Change 3Q 2014 – 3Q 2015

  8. Slide 8: Diverse Portfolio of Businesses

    Community, Consumer, and Business Corporate and Commercial Specialty Consumer and Business Banking Community Markets Private Client and Institutional Services Corporate Banking Commercial Real Estate Lending  Branch Banking  Commercial Banking  Residential Lending  Payments and Direct Channels 

  9. Slide 9: Evolving Delivery Model

    Our technology platform and offerings are often ahead of the many community banks that operate in our markets EVOLVING DELIVERY MODEL 8  Deployed new online lending and deposit sales solutions  Redesigned AssociatedBank.com to enhance eCommerce  Leveraging customer analytics and a virtual sales t

  10. Slide 10: Asset Sensitive Profile

    1 – Third quarter average 2 – Noninterest-bearing demand accounts 3 – Change in net interest income and earnings at risk due to instantaneous moves in benchmark interest rates. We evaluate the sensitivity using: 1) a dynamic forecast incorporating expected growth in the balance sheet, and 2) a stati

  11. Slide 11: Securities Portfolio Restructure

    SECURITIES PORTFOLIO RESTRUCTURE 10 GNMA 50% FNMA & FHLMC 33% Municipals 17% Other <1% September 30, 20151 0% GNMA 20% FNMA & FHLMC2 20% Municipals 50%+ Other3  The shift has resulted in a better liquidity profile and has lowered our risk-weighted assets  We will continue to optimize our portfolio

  12. Slide 12: Disciplined Capital Philosophy Targeting CET1 Range of 8.0%-9.5%

    DISCIPLINED CAPITAL PHILOSOPHY TARGETING CET1 RANGE OF 8.0% - 9.5% 11 7.9% 7.9% 7.9% 12.3% 12.2% 11.6% 11.5% 9.7% 9.4% 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015  Proactive capital management has restored capital to normalized levels; capital is modestly above pre-crisis levels  Well positio

  13. Slide 13: Driving Efficiency

    71.1% 70.9% 69.2% 68.5% 68.1% $52 $67 $75 $80 $64 4,985 4,968 4,728 4,406 4,436 2011 2012 2013 2014 YTD 2015 3,400 3,600 3,800 4,000 4,200 4,400 4,600 4,800 5,000 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 Technology & Equipment Spend FTE DRIVING EFFICIENCY ($ IN MILLIONS) Fully Tax-Equivalent Effi

  14. Slide 14: Why Associated

    WHY ASSOCIATED 13 1– Diluted EPS and ROCET1 as of YTD 2015 ; the dividends per common share includes declared dividends 2 – Return on Average Common Equity Tier 1 (ROCET1). Management uses common equity tier 1, along with other capital measures to assess and monitor our capital position. This is a n

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Net Interest Income and Margin

    $153 $156 $161 $173 $171 3.23% 3.26% 3.13% 3.06% 2.82% 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 $100 $110 $120 $130 $140 $150 $160 $170 $180 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 Net Interest Income Net Interest Margin 3.88% 3.73% 3.42% 3.29% 3.13% 4.36% 4.02% 3.72% 3.55% 3.38% 0.00

  17. Slide 17: Noninterest Income Trends

    NONINTEREST INCOME TRENDS ($ IN MILLIONS) $4 $10 $10 $14 $10 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 Mortgage Banking (net) Income $60 $55 $58 $54 $64 $9 $26 $13 $20 $16 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 Mortgage Banking (net) and Other Noninterest Income Core Fee-based Revenue $5 $16 $4 $7 $7

  18. Slide 18: Noninterest Expense Trends

    $91 $95 $98 $98 $101 $68 $74 $67 $74 $70 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 Personnel Other Noninterest Expense NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) $56 $57 $49 $54 $50 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 Technology & Equipment Spend $13 $17 $19 $20 $21 3Q 2011 3Q 2012 3Q 2013 3Q 2014

  19. Slide 19: Credit Quality Indicators

    CREDIT QUALITY INDICATORS ($ IN MILLIONS) 18 $290 $845 $728 $403 $278 $208 $184 $147 1.78% 5.72% 5.88% 2.99% 1.86% 1.33% 1.07% 0.80% 0.50% 1.50% 2.50% 3.50% 4.50% 5.50% 6.50% 7.50% 8.50% 9.50% $- $48 $126 204 $ 832 6 40 $ 48 526 $604 872 $ 6 80 48 $926 $1004 812 $1 6 20 48 $1326 404 $1 852 6 60 $1 4

  20. Slide 20: Oil and Gas Lending Update

    OIL AND GAS LENDING UPDATE 19 Portfolio Update Oil & Gas 4% All Other Loans 96%  Exclusively focused on the upstream sector (‘Exploration and Production’ or ‘E&P’ sector)  Oil & Gas period end loans were relatively flat in the third quarter Reserve Update $95 $321 $414 $663 $758 2.31% 2.44% 1.56%

  21. Slide 21: Loans by Industry and State

    LOANS BY INDUSTRY AND STATE SEPTEMBER 2015 PERIOD END BALANCES 20 Manufacturing 21% Other 12% Oil & Gas 11% Finance & Insurance 11% Real Estate 10% Wholesale Trade 9% Power & Utilities 9% Retail Trade 4% Health Care and Soc. Assist. 5% Profsnl, Scientific, and Tech Svs 3% Rental and Leasing Svs 3% T

  22. Slide 22: High Quality Securities

    HIGH QUALITY SECURITIES SEPTEMBER 2015 PERIOD END BALANCES ($ IN MILLIONS) 21 $5,454 $4,518 $4,962 $5,653 $6,017 3.12% 2.96% 2.59% 2.60% 2.48% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $- $0.01326 390. 52 $ 06578 0. 91104 $ . 1730 0. 43156 $ 690. 82 95208 $0. 21 34 470.260 $ 7386 0. 99312 $ 250. 38 51364

  23. Slide 23: Reconciliation and Definitions of Non-GAAP Items

    RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Efficiency Ratio Reconciliation: 2011 2012 2013 2014 YTD 2015 Federal Reserve efficiency ratio 73.33% 72.92% 71.05% 70.28% 69.79% Taxable equivalent adjustment (1.73) (1.61) (1.46) (1.36) (1.38) Other intangible amortization (0.51) (0.43) (0.41) (0.39

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