Associated Banc-corp · NYSE:ASB
Associated Banc-corp — Investor Presentation (May 2015)
22 slides from Associated Banc-corp's investor presentation, May 15, 2015
Slide 1: Associated Banc-Corp Investor Presentation Second Quarter 2015
Exhibit 99.1 ASSOCIATED BANC- CORP INVESTOR PRESENTATION SECOND QUARTER 2015
Slide 2: Forward-Looking Statements and Trademarks
FORWARD-LOOKING STATEMENTS AND TRADEMARKS 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 regardi
Slide 3: Our Footprint and Franchise
OUR FOOTPRINT AND FRANCHISE Largest bank headquartered in 1 Wisconsin >$1bn deposits 1 $27 billion in assets (Top 50 bank >$500mm deposits holding company in the U.S.) 227 banking offices serving approximately one million customers Deposits 2 1999 ($ in billions) Branches 2 1861 WI $13.4 161 IL $5.0
Slide 4: Attractive Midwest Markets
ATTRACTIVE MIDWEST MARKETS Serve a Large Market Place: Mar 2014 to Mar 2015 Net Change 3 1 3 Mar 14 to Mar 15 (Footprint is ~ 20% of USA) in Employment (in ‘000’s) 2 Manufacturing Concentrated : 88.2 77.4 Total Top 3 states (Indiana, Wisconsin, 71.6 Employment and Iowa) for concentration of 53.2 50.
Slide 5: 1Q 2015 Highlights and Outlook
1Q 2015 HIGHLIGHTS AND OUTLOOK 1Q 2015 Highlights: Average Loan Growth of over $400 million on a linked-quarter basis 2015 Focus: Total average loans of $17.8 billion, up 10% on a year-over- year basis In addition to growing the franchise and creating long-term shareholder Average Deposit Growth of
Slide 6: Building the Loan Portfolio
BUILDING THE LOAN PORTFOLIO 1 Cumulative 1Q 2012 – $17.8 1Q 2015 Change $17.4 $16.2 $2.1 -$1.0 bn $15.4 $2.1 $14.3 $2.2 $2.6 $4.5 $4.7 +$1.5 bn $3.1 $3.9 $3.6 $3.2 $4.1 $4.1 +$0.9 bn $3.9 $3.6 $3.2 +$2.2 bn $6.1 $6.7 $7.0 $4.8 $5.6 1Q 2012 1Q 2013 1Q 2014 4Q 2014 1Q 2015 Commercial & Business Commer
Slide 7: Loan Portfolio Growth
LOAN PORTFOLIO GROWTH 1Q 2015 AVERAGE LOAN GROWTH OF $428 MILLION OR 2% FROM 4Q 2014 $ IN MILLIONS % Change Residential Mortgage $174 +4% General Commercial Loans $168 +3% Oil & Gas $92 Total +13% Commercial & Business Commercial Real Estate $37 Lending +1% +4% Mortgage Warehouse $18 ($272 mln) +5%
Slide 8: Net Interest Income and Margin Trends
NET INTEREST INCOME AND MARGIN TRENDS Yield on Interest-earning Assets Net Interest Income & Net Interest Margin 3.60% ($ in millions) 3.61% 3.55% 3.55% 3.46% 3.36% 3.31% 3.29% 3.32% 3.12% 3.20% 3.08% 3.06% 3.04% 2.89% $175 $173 $1 $5 $169 <$1 $168 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 $165 $3 Tot
Slide 9: Diversified Portfolio of Value-Added Businesses
DIVERSIFIED PORTFOLIO OF VALUE-ADDED BUSINESSES Community, Consumer, and Business Corporate and Commercial Specialty Private Consumer Community Client and and Corporate and Commercial Real Markets Institutional Business Specialized Lending Estate Lending Services Banking Rochester, MN Private Branch
Slide 10: Evolving Model with Customer Trends
EVOLVING MODEL WITH CUSTOMER TRENDS Associated Bank Customer Trends Since 2011: Branch transactions -15% Mobile banking adoption +280% Since 2013: Digital Deposits +78% Rationalize Branch Network Enhance Digital Banking: Evolve Selling Tools: Since 2007: Current Offerings: Coming Soon: Over 25% of b
Slide 11: Pursuing Efficiency Gains
PURSUING EFFICIENCY GAINS ($ IN MILLIONS) Areas of Focus Efficiency Ratio 1 Goal = at 2014 = Peer Average 69% or Better Back Office Initiatives: Implementing technology solutions in labor intensive 70.4% 69.5% processes 69.3% 69.0% 68.9% 180 4,985 4,968 160 4,728 Real Estate Initiatives: 140 4,406 4
Slide 12: Capital Management Priorities
CAPITAL MANAGEMENT PRIORITIES Funding Fund Loan Growth and other Capital Investments Organic Growth Increased Increased Declared quarterly Paying a quarterly dividend quarterly dividend common dividend Competitive in Q4 2013 in Q4 2014 of $0.10/ share Dividend both in Q1 and Q2 Paid $0.33/ Paid $0.3
Slide 13: Why Associated
WHY ASSOCIATED 1 EPS and Dividends Paid & ROT1CE Return on Tier 1 Common Equity 10.2% Reasons to Invest 10.1% 9.4% 9.2% $0.30 $0.27 $0.27 Leading Midwest Bank Operating in Diluted Attractive Markets Earnings per $0.24 Well Diversified Lending Portfolio Common Share Stable Core Deposit Franchise Comm
Slide 14: Appendix
APPENDIX
Slide 15: Segment Profitability
SEGMENT PROFITABILITY FIRST QUARTER 2015 ASB – Consolidated Total Earning Assets* = $24.1 bn Total Revenue = $247.9 mm Net Income = $46.7 mm ROT1CE: 10.2% Earning Assets* Total Revenue Net Income 38% 35% 36% 37% 61% 62% 27% 3% 1% ROT1CE Community, Consumer, & Business Banking 10.7% Risk Management &
Slide 16: Loans by Industry and State
LOANS BY INDUSTRY AND STATE PERIOD END BALANCES C&BL Loans by Industry CRE Loans by Industry Residential Mortgage Loans by State ($7.2 billion – Mar 2015) ($4.1 billion – Mar 2015) ($4.7 billion – Mar 2015) Rental and Other Hotel / Motel In- 1 Other Transport. and Leasing Svs 3% 4% Profsnl, 3% Whsin
Slide 17: Noninterest Income Trends
NONINTEREST INCOME TRENDS ($ IN MILLIONS) 1 Core Fee-based Revenue $60 $64 $57 $54 $56 Total Noninterest Income $80 $74 $72 $75 1Q 2Q 3Q 4Q 1Q $8 $70 $20 2014 2014 2014 2014 2015 $12 $14 $11 Mortgage Banking (net) Income $6 $7 $7 $5 $3 1Q 2Q 3Q 4Q 1Q 2014 2014 2014 2014 2015 2 Other Noninterest Inco
Slide 18: Noninterest Expense Trends
NONINTEREST EXPENSE TRENDS ($ IN MILLIONS) 2 Personnel Spend / FTE Trend 4,517 4,431 4,359 4,422 4,320 $98 $98 $98 $97 $100 Total Noninterest Expense $168 $168 $172 $172 $174 Q1 Q2 Q3 Q4 Q1 2014 2014 2014 2014 2015 Personnel Spend Avg FTE 3 Technology Spend $19 $21 $20 $21 $21 Q1 Q2 Q3 Q4 Q1 2014 20
Slide 19: Credit Quality Indicators
CREDIT QUALITY INDICATORS ($ IN MILLIONS) Potential Problems Loans & PPLs to Total Loans Nonaccruals & NA / Total Loans $288 $220 $220 $219 $190 $179 $184 1.69% $178 $177 $174 1.34% 1.28% 1.22% 1.08% 1.08% 1.05% 1.07% 1.01% 0.97% 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 1Q 2014 2Q 2014 3Q 2014 4Q 201
Slide 20: Investment Securities Portfolio
INVESTMENT SECURITIES PORTFOLIO Investment Portfolio – March 31, 2015 Amortized Cost Composition – March 31, 2015 Type Amortized Fair Value TEY Duration Cost (000’s) (%) (Yrs) (000’s) Govt & Agencies $999 $1,002 0.67 1.88 Municipals Agency MBS 17% 2,743,852 2,800,382 2.53 2.53 Agency MBS CMOs 871,25
Slide 21: Reconciliation and Definitions of Non-GAAP Items (1 of 2)
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS (1 OF 2) 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Efficiency Ratio Reconciliation: Efficiency ratio, as defined by the Federal Reserve (1) 70.41% 69.70% 69.44% 70.33% 70.30% Taxable equivalent adjustment (1.35) (1.32) (1.36) (1.40) (1.42) Asset gains,
Slide 22: Reconciliation and Definitions of Non-GAAP Items (2 of 2)
RECONCILIATION AND DEFINITIONS OF NON-GAAP ITEMS (2 OF 2) ($ in thousands) 1Q 2012 1Q 2013 1Q 2014 1Q 2015 Tier 1 Common Equity Reconciliation: Stockholders’ Equity $2,900,873 $2,936,265 $2,901,024 $2,882,138 Accumulated other comprehensive income (loss) (65,278) (42,991) 11,577 (24,800) Preferred e
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