Slide 1: Associated Banc-Corp Third Quarter 2015 Earnings Presentation
ASSOCIATED BANC-CORP THIRD QUARTER 2015 EARNINGS PRESENTATION OCTOBER 15, 2015
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: 2015 Third Quarter Highlights
2015 THIRD QUARTER HIGHLIGHTS 2 Higher Net Interest Income and Lower Expenses Offset Lower Fee-Revenue Average loans of $18.5 billion were up $264 million, or 1% from the second quarter ‒ Average consumer loans grew $231 million, 87% of the quarter’s growth ‒ Average commercial loans grew $34 mill
Slide 4: Loan Portfolio – Trend and Mix
CRE Investor 17% Construction 6% Commercial & Business Lending 38% Res Mtg 31% Home Equity 6% Installment 2% ($46) ($17) ($16) ($15) $0 $111 $247 LOAN PORTFOLIO – TREND AND MIX 3 3Q 2015 Average Net Loan Change (+$264 million) Loan Mix – 3Q 2015 (Average) Home Equity & Installment Commercial Real Es
Slide 5: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS 4 Line Utilization Decline Largely Driven by Mortgage Warehouse Change from 2Q 15 Commercial Real Estate Flat at 58% 49% 47% 49% 52% 53% 52% 55% 56% 54% 61% 63% 64% 62% 59% 60% 59% 58% 58% 40% 45% 50% 55% 60% 65% 70% 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014
Slide 6: Oil and Gas Lending Update
OIL AND GAS LENDING UPDATE 5 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 $754 $780 $757 $758 2.26% 3.46% 3.43% 3.83%
Slide 7: Net Interest Income and Margin Trends
$172 $170 $165 $165 $170 $3 $1 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Interest Recoveries & Prepayment Fees Net Interest Income Net of Interest Recoveries & Prepayment Fees 3.06% 3.04% 2.89% 2.83% 2.82% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 $
Slide 8: Noninterest Income Trends
$7 $3 $7 $10 $7 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 NONINTEREST INCOME TRENDS ($ IN MILLIONS) $14 $11 $9 $11 $9 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Mortgage Banking (net) Income $54 $56 $64 $66 $64 $21 $14 $16 $21 $16 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Mortgage Banking (net) and Other N
Slide 9: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) $54 $54 $53 $52 $49 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Technology and Equipment Spend Total Noninterest Expense $20 $21 $21 $22 $21 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Other Non-Personnel Spend2 1 – The fully tax-equivalent efficiency ratio is a no
Slide 10: Credit Quality Indicators
CREDIT QUALITY INDICATORS ($ IN MILLIONS) 9 $184 $177 $174 $160 $147 1.07% 1.01% 0.97% 0.88% 0.80% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $4 8 $12 6 $20 4 $28 32 $ 6 40 $ 4 48 $52 6 $60 4 $68 72 $ 6 80 $ 4 88 $92 6 $100 4 $108 12 $1 6 20 $1 4 28 $132 6 $140 4 $148 52 $1 6 60 $1 4 68 $172 6 $180 4 $1
Slide 11: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Efficiency Ratio Reconciliation 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Efficiency ratio, Federal Reserve definition 71.06% 70.54% 70.30% 70.23% 68.83% Taxable equivalent adjustment (1.39) (1.41) (1.42) (1.34) (1.39) Other intangible amortization (0.4