Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q4 2015 Earnings Presentation
19 slides from Associated Banc-corp's earnings presentation, Jan 21, 2016
Slide 1: Fourth Quarter 2015 Earnings Presentation
FOURTH QUARTER 2015 EARNINGS PRESENTATION JANUARY 21, 2016 Exhibit 99.2
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
Slide 3: Highlights: Solid Earnings with Record Loans and Deposits
Balance Sheet Average loans of $18.3 billion were up $1.4 billion, or 8% from 2014 ‒ Average commercial loans grew $772 million, up 7% from last year ‒ Average consumer loans grew $642 million, up 10% from last year Average deposits of $19.9 billion were up $2.3 billion, or 13% from last year Ne
Slide 4: Loan Portfolio – Annual Trends
($33) $53 $131 $142 $214 $232 $675 CRE Investor 17% Construction 6% Commercial & Business 39% Res Mtg 30% Home Equity 6% Installment 2% LOAN PORTFOLIO – ANNUAL TRENDS 3 2015 Average Net Loan Change (from 2014) Loan Mix – 2015 Annual (Average) Home Equity & Installment Power & Utilities Oil & Gas Mor
Slide 5: Loan Portfolio – Quarterly Trends
CRE Investor 18% Construction 6% Commercial & Business 37% Res Mtg 32% Home Equity 5% Installment 2% ($125) ($96) ($13) ($6) $29 $113 $187 LOAN PORTFOLIO – QUARTERLY TRENDS 4 4Q 2015 Average Net Loan Change (from 3Q 2015) Loan Mix – 4Q 2015 (Average) Home Equity & Installment Commercial Real Estate
Slide 6: Oil and Gas Lending Update
OIL AND GAS LENDING UPDATE 5 $754 $780 $757 $758 $752 2.26% 3.46% 3.43% 3.83% 5.58% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% $500 $550 $600 $650 $700 $750 $800 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Period End Oil & Gas Loans Related Reserves % ($ in millions) Borrowing base re
Slide 7: Oil and Gas Credit Profile
$3 $3 $7 $17 $27 $26 $29 $42 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Specific Energy Reserve Total Energy Related Reserve OIL AND GAS CREDIT PROFILE 6 Oil and Gas Loans Outstanding, $ millions 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Pass $725 $706 $658 $587 $522 Criticized / Classified 29 74 88 158
Slide 8: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS 7 63% 64% 62% 59% 60% 59% 58% 58% 55% 47% 49% 52% 53% 52% 55% 56% 54% 52% 40% 45% 50% 55% 60% 65% 70% 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Commercial Real Estate Commercial & Business Lending
Slide 9: Deposit Portfolio
$8.2 $8.7 $9.1 $9.5 $9.5 $4.4 $4.3 $4.3 $4.6 $5.0 $3.1 $3.2 $3.3 $3.2 $3.2 $1.5 $1.6 $1.6 $1.6 $1.6 $1.3 $1.3 $1.4 $1.4 $1.4 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Money Market Noninterest-bearing Demand Interest-bearing Demand Time Deposits Savings DEPOSIT PORTFOLIO 8 1 – FDIC 2015 U.S Bank Branch
Slide 10: Net Interest Income and Margin Trends
$613 $626 $646 $681 $676 2011 2012 2013 2014 2015 Net Interest Income 4.27% 3.98% 3.78% 3.60% 3.37% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% $140 $144 $148 $153 $157 $161 $165 $169 $174 $178 3.26% 3.30% 3.17% 3.08% 2.84% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $4
Slide 11: Net Interest Income and Margin Quarterly Trends
$140 $144 $148 $153 $157 $161 $165 $169 $174 $178 Yield on Interest-earning Assets Net Interest Income & Net Interest Margin 3.04% 2.89% 2.83% 2.82% 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 $44 $48 $52 $56 $60 $64 $68 $72 $76 $80 $84 $88 $9
Slide 12: Noninterest Income – Annual Trends
$236 $220 $224 $227 $256 $37 $93 $89 $63 $72 2011 2012 2013 2014 2015 Mortgage Banking (net) and Other Noninterest Income Core Fee-based Revenue NONINTEREST INCOME – ANNUAL TRENDS ($ IN MILLIONS) Mortgage Banking (net) Income Other Noninterest Income2 11 1 – Core Fee-based Revenue = Trust service fe
Slide 13: Noninterest Income – Quarterly Trends
$3 $7 $10 $7 $8 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 NONINTEREST INCOME – QUARTERLY TRENDS ($ IN MILLIONS) $11 $9 $11 $9 $11 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Mortgage Banking (net) Income $56 $64 $66 $64 $63 $14 $16 $21 $16 $19 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Mortgage Banking (net)
Slide 14: Noninterest Expense – Annual Trends
5,056 4,915 4,584 4,320 4,378 4Q 2011 4Q 2012 4Q 2013 4Q 2014 4Q 2015 $360 $381 $397 $390 $405 $293 $294 $284 $289 $292 2011 2012 2013 2014 2015 Personnel Other Noninterest Expense NONINTEREST EXPENSE – ANNUAL TRENDS ($ IN MILLIONS) Technology and Equipment Spend Other Non-Personnel Spend2 1 – The f
Slide 15: Noninterest Expense – Quarterly Trends
$21 $21 $22 $21 $20 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 NONINTEREST EXPENSE – QUARTERLY TRENDS ($ IN MILLIONS) $54 $53 $52 $49 $55 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Technology and Equipment Spend Other Non-Personnel Spend2 1 – The fully tax-equivalent efficiency ratio is a non-GAAP financi
Slide 16: Credit Quality – Annual Trends
$566 $361 $235 $190 $302 4.04% 2.34% 1.48% 1.08% 1.61% 0.50% 1.50% 2.50% 3.50% 4.50% 5.50% $- $48 $126 204 $ 832 640 $ 48 526 $604 872 $ 680 4 8 $926 $1004 812 $1 620 48 $1326 404 $1 852 660 $1 48 72 6 $1804 892 $1 6200 48 $ 122 6 204 $ 8232 640 $ 42 8 526 $ 60 2 4 872 $ 6280 48 $ 922 6 3004 $ 812 3
Slide 17: Credit Quality – Quarterly Trends
$190 $219 $200 $264 $302 1.08% 1.22% 1.09% 1.42% 1.61% 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 $188 92 $1 6 200 $ 4 208 $ 12 2 6 $ 20 2 4 $ 2
Slide 18: 2016 Outlook
2016 OUTLOOK Balance Sheet High single digit annual average loan growth Maintain Loan to Deposit ratio under 100% Net Interest Margin Modest upward trend, assuming additional Federal Reserve action to raise rates Noninterest Income Flat to prior year, excluding investment securities gains No
Slide 19: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS Efficiency Ratio Reconciliation 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 2011 2012 2013 2014 2015 Federal Reserve efficiency ratio 70.54% 70.30% 70.23% 68.83% 70.36% 73.33% 72.92% 71.05% 70.28% 69.93% Taxable equivalent adjustment (1.41) (1.42) (1.34)