Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q3 2017 Earnings Presentation
14 slides from Associated Banc-corp's earnings presentation, Oct 19, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
THIRD QUARTER 2017 EARNINGS PRESENTATION OCTOBER 19, 2017 Exhibit 99.2
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 Update
1 – Unless otherwise noted, all comparative statements are made with reference to second quarter 2017 results. THIRD QUARTER UPDATE1 3 Balance Sheet Management ▪ Average deposits were up $918 million, or 4% ▪ Network deposits were down approximately $600 million ▪ On track to deliver mid-single digi
Slide 4: Loan Portfolio
Home equity & other consumer 6% Commercial & business 35% Residential mortgage 35% CRE investor 16%Construction 8% 4 LOAN PORTFOLIO $32 $30 $9 $5 $(11) $(30) $(40) 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $1.4 $1.3 $1.3 $1.3 $1.3 $6.3 $6.3 $6.6 $7.0 $7.3 $4.9 $4.9 $5.0 $5.0 $5.0 $7.6 $7.4 $7.2 $20.1
Slide 5: Deposit Portfolio
5 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 91% 92% 92% 96% 94% ($ in billions) Money market 42% Time Deposits 10% Savings 7% Noninterest -bearing demand 22% Interest- bearing demand 19% DEPOSIT PORTFOLIO 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $1.6 $1.6 $1.6 $1.8 $2.2 $1.4 $1.5 $1.5 $1.5 $1.5 $9.1 $9
Slide 6: Net Interest Income and Margin
6 NET INTEREST INCOME AND MARGIN 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $178 $178 $184 $1 $179 $2 $180 $1 $180 $2 $190 2.77% 2.80% 2.84% 2.83% 2.84% Average Yields Net Interest Income & Net Interest Margin ($ in millions) Interest recoveries, prepayment fees, & deferred fees Net interest income net
Slide 7: Noninterest Income
Mortgage banking, net 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $12 $5 $5 $7 $7 $8 $4 $4 $5 $3 $3 $23 $3 $4 $13 $7 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $66 $63 $67 $67 $66 $95 $92 $80 $82 $86 NONINTEREST INCOME ($ IN MILLIONS) 1 – Fee-based revenue = A non-GAAP financial measure, is the sum of trus
Slide 8: Noninterest Expense
YTD 3Q13 YTD 3Q14 YTD 3Q15 YTD 3Q16 YTD 3Q17 70% 70% 70% 68% 66%68% 68% 68% 66% 64% 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $104 $107 $104 $105 $106 $175 $179 $174 $176 $177 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $15 $14 $15 $13 $12 NONINTEREST EXPENSE ($ IN MILLIONS) 1 – The efficiency ratio as de
Slide 9: Credit Quality
9 CREDIT QUALITY ($ IN MILLIONS) Potential Problem Loans Nonaccrual Loans Net Charge Offs (Recoveries) Allowance to Total Loans / Oil and Gas Loans 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $270 $276 $262 $226 $220 $171 $441 $75 $351 $78 $340 $37 $263 $39 $259 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 $
Slide 10: ATC Asset Management Expansion
2013 2014 2015 2016 LTM Sept 2017 $46 $48 $49 $47 $49 $15 $61 $16 $64 $15 $64 $16 $63 $17 $7 $73 2013 2014 2015 2016 Sept 2017 $7.4 $8.0 $7.7 $8.3 $9.2 $1.0 10 ATC ASSET MANAGEMENT EXPANSION Enhanced Big-Firm Financial Services With a Family Touch Assets Under Management ("AUM") Trust Service Fees a
Slide 11: Appendix
APPENDIX
Slide 12: Oil and Gas Update
12 OIL AND GAS UPDATE Period End Loans by Credit Quality Oil and Gas Allowance ($ in millions) ($ in millions) 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 5.5% 5.7% 6.7% 5.4% 5.2% $38 $38 $42 $33 $30 Total O&G Portfolio As of September 30, 2017 # of credits $ of commitments $ of outstandings % of total
Slide 13: Network Transaction Deposits
13 3Q 2013 3Q 2014 3Q 2015 3Q 2016 3Q 2017 $2.2 $2.2 $3.2 $3.7 $2.6 $18.7 $21.1 $22.2 $22.6 12.1% 12.1% 15.6% 17.2% 11.7% Network Transaction Deposits (NTD) 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 0.05% 0.05% 0.05% 0.05% 0.06% 0.30% 0.31% 0.42% 0.52% 0.65% 0.78% 0.78% 0.79% 0.85% 0.97% NETWORK TRANS
Slide 14: Reconciliation and Definitions of Non-GAAP Items
14 RECONCILIATION AND DEFINITONS OF NON-GAAP ITEMS Efficiency Ratio YTD 3Q13 YTD 3Q14 YTD 3Q15 YTD 3Q16 YTD 3Q17 Federal Reserve efficiency ratio 70.20 % 70.19 % 69.79 % 67.51 % 65.64 % Fully tax-equivalent adjustment (1.44)% (1.35)% (1.38)% (1.32)% (1.27)% Other intangible amortization (0.42)% (0.4