Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q2 2015 Earnings Presentation
15 slides from Associated Banc-corp's earnings presentation, Jul 16, 2015
Slide 1: Associated Banc-Corp 2Q 2015 Earnings Presentation
ASSOCIATED BANC-CORP 2Q 2015 EARNINGS PRESENTATION JULY 16, 2015 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: 2015 Second Quarter Highlights
2015 SECOND QUARTER HIGHLIGHTS 2 Solid Loan and Fee-Revenue Growth Offset Continued Margin Compression • Average loans of $18.2 billion were up $373 million, or 2% from the first quarter ‒ Average commercial loans grew $220 million, 59% of the quarter’s growth ‒ Average consumer loans grew $153 mill
Slide 4: Loan Portfolio – Trend and Mix
($66) ($16) $26 $35 $46 $130 $219 LOAN PORTFOLIO – TREND AND MIX 3 2Q 2015 Average Net Loan Change (+$373 million) Loan Mix – 2Q 2015 (Average) CRE Investor 17% Construction 6% Commercial & Business Lending 39% Res Mtg 27% Home Equity 9% Installment 2% ($ in millions) Home Equity & Installment Comme
Slide 5: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS 4 51% 49% 47% 49% 52% 53% 52% 55% 56% 60% 61% 63% 64% 62% 59% 60% 59% 58% 40% 45% 50% 55% 60% 65% 70% 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Commercial & Business Lending Commercial Real Estate Line utilization increased across the
Slide 6: Oil and Gas Lending Update
OIL AND GAS LENDING UPDATE 5 • Portfolio is performing as expected • Oil & Gas period end loans decreased 3% in the second quarter • Spring borrowing base re-determinations and the SNC exam are complete • Released $1 million in reserves in the second quarter ($ in Millions) 4Q 2014 1Q 2015 2Q 2015 E
Slide 7: Net Interest Income and Margin Trends
3.08% 3.06% 3.04% 2.89% 2.83% 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 $92 $96 $100 $104 $108 $112 $116 $120 $124 $128 $132 $136 $140 $144 $148 $152 $156 $160 $164 $168 $172 $176 $180 3.31% 3.29% 3.
Slide 8: Noninterest Income Trends
NONINTEREST INCOME TRENDS ($ IN MILLIONS) $7 $14 $11 $9 $11 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Mortgage Banking (net) Income $60 $54 $56 $64 $66 $12 $21 $14 $16 $21 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Mortgage Banking (net) and Other Noninterest Income Core Fee-based Revenue Total Nonintere
Slide 9: Insurance Business Expansion Key Driver of Noninterest Revenue Growth
INSURANCE BUSINESS EXPANSION KEY DRIVER OF NONINTEREST REVENUE GROWTH 8 Insurance Commissions Trend Insurance Commissions – YTD 2015 • In February 2015, Associated Financial Group (AFG), a leading risk and benefit consulting practice based in WI, acquired Ahmann & Martin Co., a leading property and
Slide 10: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) $49 $54 $54 $53 $52 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Technology2 Spend Total Noninterest Expense $21 $20 $21 $21 $22 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Other Non-Personnel Spend3 4,431 4,359 4,320 4,422 4,465 3,800 4,000 4,200 4,400 4,600 4,800
Slide 11: Evolving Delivery Model
EVOLVING DELIVERY MODEL 10 • Changing customer behavior has driven our focus on branch channel optimization • In 2Q 2015: – Announced ten additional branch closures for a total of thirteen closures in 2015 – Launched $5 million website refresh with advanced on-line selling and account opening tools
Slide 12: Credit Quality Indicators
CREDIT QUALITY INDICATORS ($ IN MILLIONS) 11 $179 $184 $177 $174 $160 1.05% 1.07% 1.01% 0.97% 0.88% 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 $
Slide 13: 2015 Full Year Outlook
2015 FULL YEAR OUTLOOK 12 Balance Sheet • High single digit annual average loan growth • Maintain Loan/Deposit ratio under 100% Margin • Modest continuing compression throughout the year Noninterest Income1 • Upper single digit growth from 2014 Noninterest Expense1 • Total noninterest expense not to
Slide 14: Appendix
APPENDIX 13
Slide 15: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Efficiency Ratio Reconciliation: Efficiency ratio (1) 69.70% 69.44% 70.33% 70.30% 70.23% Taxable equivalent adjustment (1.32) (1.36) (1.40) (1.42) (1.34) Asset gains, net 0.26 1.36 1.05 0.30 0.51 Other intangibl