Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ASSOCIATED BANC-CORP | d245548d8k.htm |
| EX-99.1 - PRESS RELEASE - ASSOCIATED BANC-CORP | d245548dex991.htm |
 Associated Banc-Corp
3Q 2011 Earnings Presentation
October 20, 2011
Exhibit 99.2 |
 Forward-Looking Statements
Important
note
regarding
forward-looking
statements:
1
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 plans, objectives, or goals for future
operations, products or services, and forecasts of its revenues, earnings, or other
measures of performance. Forward-looking statements are based on current
management expectations and, by their nature, are subject to risks and uncertainties.
These statements may be identified by the use of words such as “believe”,
“expect”, “anticipate”, “plan”, “estimate”,
“should”, “will”, “intend”, or similar expressions. Outcomes
related to such statements are subject to numerous risk factors and uncertainties
including those listed in the company’s most recent Form 10-K and any subsequent
Form10-Q. |
 Third
Quarter 2011 Highlights •
Net income to common shareholders of $34 million or $0.20 per share
•
Pre-tax
income
improved
33%,
or
$15
million
and
net
income
to
common
shareholders
improved 33%, or $8 million from the prior quarter
•
Total loans of $13.5 billion were up 3% from the end of the second quarter
–
Commercial and business lending (C&I, leasing, and owner-occupied CRE
loans) grew by a net $198 million on a linked-quarter basis
–
Commercial real estate lending (Investor CRE and construction loans) increased by
a net $108 million from the prior quarter
–
Retail loans and residential mortgages grew by a net $108 million during the third
quarter •
Continued improvement in key credit metrics
–
Nonaccrual loans declined 14% from the prior quarter and 45% on a
year-over-year basis to $403 million, the lowest level in seven
quarters –
Provision for loan losses of $4 million was down significantly from the prior
quarter –
Net charge-offs of $30 million were down 32% from $45 million for the second
quarter •
Capital ratios remain very strong with a Tier 1 common ratio of 12.44% and total
capital ratio of 15.81%
•
Completed the repurchase of remaining TARP funds through senior note and preferred
stock offerings
2 |
 Loan
Portfolio Growth and Composition 3
Total Loans of $13.5 billion at September 30, 2011
Loan Mix –
4Q 2008 vs 3Q 2011
Total Loans ($ in billions)
+3% QoQ
4Q 2008
3Q 2011
Peak Loans (4Q 2008) $16.3 billion
$12.4
$12.6
$12.7
$13.1
$13.5
$10.5
$12.0
$13.5
$15.0
$16.5
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
CRE Investor
14%
Construction
14%
Commercial &
Business
Lending
35%
Res Mtg
14%
Home Equity
18%
Consumer
5%
CRE Investor
19%
Construction
4%
Commercial &
Business
Lending
33%
Res Mtg
21%
Home Equity
19%
Consumer
4% |
 Managing the Cost of Funds and Customer Funding Levels
4
Cost of Money Market Deposits
Cost of Interest-Bearing Liabilities
$6.8b
$6.0b
$5.1b
$5.0b
$5.1b
$16.4b
$15.5b
$14.9b
$15.3b
$15.2b
Net Customer Deposits and Funding
($ in billions)
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
0.54%
0.47%
0.37%
0.33%
0.30%
1.03%
0.98%
0.89%
0.91%
0.83%
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
$14.6
$14.2
$14.7
$15.0
$15.7
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011 |
 Continuing Decline in Potential Problem Loans
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
YoY
Change
Commercial and industrial
$
373,955
$ 354,284
$ 348,949
$ 229,407
$ 207,351
(45%)
Commercial real estate
553,126
492,778
465,376
382,056
392,737
(29%)
Real estate -
construction
175,817
91,618
70,824
63,186
37,155
(79%)
Lease financing
2,302
2,617
1,705
1,399
507
(78%)
Total commercial
1,105,200
941,297
886,854
676,048
637,750
(42%)
Home equity
6,495
3,057
4,737
4,515
4,975
(23%)
Installment
692
703
230
216
272
(61%)
Total retail
7,187
3,760
4,967
4,731
5,247
(27%)
Residential mortgage
19,416
18,672
19,710
18,575
16,550
(15%)
Total Potential Problem Loans
$ 1,131,803
$ 963,729
$ 911,531
$ 699,354
$ 659,547
(42%)
5
($ in millions) |
 Significant Improvements in Credit Quality Indicators
6
($ in millions)
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
$ 64.0
$ 63.0
$ 31.0
$ 16.0
$ 4.0
Net charge offs
$ 109.9
$ 108.2
$ 53.4
$ 44.5
$ 30.2
ALLL/Total
loans
4.22%
3.78%
3.59%
3.25%
2.96%
ALLL/Nonaccruals
71.72%
83.02%
93.07%
91.09%
99.09%
NPA/Assets
3.47%
2.84%
2.50%
2.33%
2.03%
Nonaccruals/Loans
5.88%
4.55%
3.86%
3.57%
2.99%
NCOs / Avg Loans
3.39%
3.41%
1.71%
1.37%
0.90%
Provision
for
loan
losses |
 Maintaining a Strong Capital Profile
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
ASBC
Capital
Ratios
Stockholders’
equity
/
assets
14.21%
14.50%
14.88%
13.60%
13.01%
Tangible common equity / tangible assets
8.03%
8.12%
8.42%
8.49%
8.77%
Tangible equity / tangible assets
10.41%
10.59%
10.93%
9.71%
9.07%
Tier 1 common equity / risk-weighted assets
12.31%
12.26%
12.65%
12.61%
12.44%
Tier 1 leverage ratio
10.78%
11.19%
11.65%
10.46%
9.62%
Tier 1 risk-based capital ratio
17.68%
17.58%
18.08%
16.03%
14.35%
Total risk-based capital ratio
19.16%
19.05%
19.56%
17.50%
15.81%
7 |
 –
Solid third quarter results, with EPS of $0.20 per common share
–
Loan
portfolio
grew
3%
from
the
second
quarter
to
$13.5
billion,
with
strong
growth
from major segments
–
Credit continues to improve
–
Increasing pre-tax income, up 33% from prior quarter
8
3Q 2011
Summary
–
Continuing to execute our strategic initiatives for loan growth
–
Modest pressure on the net interest margin
–
Continuing to invest in our brand, our footprint, and our people
Remainder
of
2011
–
Positioning
for
the
Future
–
Our customer centric investments will provide attractive returns
–
Focusing on levers for earnings expansion
2012
and
Beyond
–
Investing
in
Our
Franchise |
 Deposit and Funding Portfolio Trends
9
($ in thousands)
Cost of Funds
Jun 30, 2011
Sep 30, 2011
$ Change
% Change
3Q 2011
Demand
3,218,722
$
3,711,570
$
492,848
15%
Savings
1,007,337
1,013,195
5,858
1%
0.11
%
Interest-bearing demand
1,931,519
2,071,627
140,108
7%
0.18
Money market
4,982,492
5,205,401
222,909
4%
0.30
Brokered CDs
316,670
203,827
(112,843)
-36%
1.29
Other time deposits
2,609,310
2,576,790
(32,520)
-1%
1.50
Total deposits
14,066,050
14,782,410
716,360
5%
0.56
Customer repo sweeps
930,101
871,619
(58,482)
-6%
Customer repo term
1,147,938
1,141,450
(6,488)
-1%
Total customer funding
2,078,039
2,013,069
(64,970)
-3%
Total Deposits and Customer Funding
16,144,089
16,795,479
651,390
4%
Network transaction deposits
824,003
875,630
51,627
6%
Brokered CDs
316,670
203,827
(112,843)
-36%
1.29
Total Networked and Brokered Deposits
1,140,673
1,079,457
(61,216)
-5%
Net Customer Deposits and Funding
15,003,416
$
15,716,022
$
712,606
5%
Jun 11 vs Sep 11
Period End Deposit and Customer Funding Composition |
 Loan
Portfolio Trends 10
($ in thousands)
Cost of Funds
Jun 30, 2011
Sep 30, 2011
$ Change
% Change
3Q 2011
Commercial and industrial
3,202,301
$
3,360,502
$
158,201
5%
Lease financing
54,001
54,849
848
2%
Commercial real estate - owner occupied
1,030,060
1,068,616
38,556
4%
Commerical and business lending
4,286,362
4,483,967
197,605
5%
Commercial real estate - investor
2,393,626
2,481,411
87,785
4%
Real estate - construction
533,804
554,024
20,220
4%
Commercial real estate lending
2,927,430
3,035,435
108,005
4%
Total commercial
7,213,792
7,519,402
305,610
4%
4.28
%
Home equity
2,594,029
2,571,404
(22,625)
-1%
Installment
589,714
572,243
(17,471)
-3%
Total retail
3,183,743
3,143,647
(40,096)
-1%
4.78
Residential mortgage
2,692,054
2,840,458
148,404
6%
4.09
Total Loans
13,089,589
$
13,503,507
$
413,918
3%
4.36
Jun 11 vs Sep 11
Period End Loan Composition |