Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Q1 2014 Earnings Presentation
13 slides from Associated Banc-corp's earnings presentation, Apr 17, 2014
Slide 1: Associated Banc-Corp 1Q 2014 Earnings Presentation
Exhibit 99.2 * * * * ASSOCIATED BANC-CORP 1Q 2014 EARNINGS PRESENTATION APRIL 17, 2014
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: 2014 First Quarter Highlights
2014 FIRST QUARTER HIGHLIGHTS Balance Sheet Growth drives Solid Earnings Net Income • Net income available to common shareholders of $44 million or $0.27 per share & • Pretax income of $66 million was up $4 million, or 7% from the fourth quarter ROT1CE • Return on Tier 1 Common Equity of 9.4% • Aver
Slide 4: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION Average Loans of $16.2 billion for First Quarter of 2014 Average Quarterly Loans ($ in billions) 1Q 2014 Average Net Loan Change (+$416 mln) ($ in millions) % Chg Commercial Real Estate +5% General Commercial Loans +3% Total Oil & Gas +21% Commercial & Business Residential
Slide 5: Commercial Line Utilization Trends
COMMERCIAL LINE UTILIZATION TRENDS Line utilization increased in all Commercial lines of business Increase from 4Q 13 CRE + 110 bps Specialized + 170 bps Commercial + 200 bps 4
Slide 6: Growing Net Interest Income While Margin Compresses
GROWING NET INTEREST INCOME WHILE MARGIN COMPRESSES Yield on Interest-earning Assets Net Interest Income & Net Interest Margin ($ in millions) Cost of Interest-bearing Liabilities Net Interest Margin 5
Slide 7: Noninterest Income Trends
NONINTEREST INCOME TRENDS ($ IN MILLIONS) 1 – Core Fee-based Revenue = Trust service fees plus Service charges on deposit accounts plus Card-based and other non deposit fees plus Insurance commissions plus Brokerage and annuity commissions. This is a non-GAAP measure. Please refer to press release t
Slide 8: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) 1 – Efficiencyratio = Noninterest expense, excluding amortizationof intangibles, divided by sum of taxable equivalent net interest income plus noninterest income, excluding investment securities gains, net, and asset gains, net. This is a non-GAAP financial
Slide 9: Improvement in Credit Quality Indicators
IMPROVEMENT IN CREDIT QUALITY INDICATORS ($ IN MILLIONS) 8
Slide 10: Strong Capital Profile & Sustained Earnings
STRONG CAPITAL PROFILE & SUSTAINED EARNINGS Tier 1 Common Equity Ratio Net Income Available to Common & ROT1CE Net Income Available Return on Tier 1 to Common Common Equity ($ in millions) • Current capital levels are well in excess of “well-capitalized” regulatory benchmarks – Existing capital leve
Slide 11: 2014 Outlook
2014 OUTLOOK Asset Growth • Annual average loan growth of 6-8% Deposits / Funding • High single digit average deposits and other funding growth Mix • Continued modest NIM compression Margin Noninterest • NII down slightly. Mortgage banking income decline offset by Income other fee categories growth
Slide 12: Appendix
** ** ** ** ** ** ** ** ** ** APPENDIX 11
Slide 13: Reconciliation and Definitions of Non-GAAP Items
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Efficiency Ratio Reconciliation: Efficiency ratio (1) 70.03% 69.01% 71.45% 73.70% 70.41% Taxable equivalent adjustment (1.46) (1.38) (1.50) (1.49) (1.35) Asset gains (losses), net 0.24 (0.01) 0.59 0.80 0.22 Othe