Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ASSOCIATED BANC-CORP | d657467d8k.htm |
| EX-99.1 - EX-99.1 - ASSOCIATED BANC-CORP | d657467dex991.htm |
 ASSOCIATED BANC-CORP
4Q 2013 EARNINGS PRESENTATION
JANUARY 16, 2014
Exhibit 99.2 |
 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 plans, objectives, or goals for future operations, products or
services, and forecasts of its revenues, earnings, or other measures of
performance. Such
forward-looking statements may be identified by the use of words such as
“believe”, “expect”,
“anticipate”, “plan”, “estimate”, “should”,
“will”, “intend”, “outlook”, or similar expressions.
Forward-
looking statements are based on current management expectations and, by their
nature, are subject to risks and uncertainties. Actual results may differ
materially from those contained in the forward-looking statements.
Factors which may cause actual results to differ materially from those
contained in such forward-looking statements include those identified in the
Company’s most recent Form 10-K and subsequent SEC filings.
Such factors are incorporated herein by reference.
1 |
 2013
FULL YEAR HIGHLIGHTS 2
Solid Earnings with Balance Sheet Growth
Revenue,
Net Income
& ROT1CE
Balance Sheet
Net Interest Income
&
Net Interest Margin
•
Average loans of $15.7 billion were up 6% from 2012
–
Commercial and Residential Mortgage loans up 12% each from 2012
–
Home Equity and Installment loans declined from 2012
•
Net interest income of $646 million was up 3% from 2012
–
Net interest margin of 3.17% compared to 3.30% last year
Capital
•
2013 dividends of $0.33/share, up 43% from 2012
•
Repurchased 7.7 million shares of stock during 2013
•
Capital ratios remain very strong with a Tier 1 common equity ratio of
11.46%
Noninterest Income
& Expense
•
Noninterest income of $313 million was flat compared to 2012
–
Increases in Gains on Sale of Assets was almost entirely offset by decline in
Mortgage Banking Income
•
Noninterest expense of $681 million was down $1 million from prior year
•
Total 2013 revenues of $959 million, up 2% from 2012
•
Net income available to common shareholders of $184 million or $1.10 per
share •
Return on Tier 1 Common Equity of 9.8%, compared to 9.5% for 2012
•
Average deposits of $17.4 billion were up 12% from last year
|
 LOAN
PORTFOLIO COMPOSITION 3
Average 2013 YTD Loans of $15.7 billion
2013 Average Net Loan Change (from 2012)
Loan Mix –
2013 Annual (Average)
($ balances in millions)
Home Equity & Installment
Commercial Real Estate
Residential Mortgage
Power & Utilities
Oil & Gas
Mortgage Warehouse
General Commercial Loans
Average Annual Loans ($ in billions)
+12%
% Chg
+11%
+7%
+151%
(15%)
(17%)
Commercial &
Business
Lending
+13%
+54% |
 GROWING
NET INTEREST INCOME WHILE MARGIN COMPRESSES
4
Yield on Interest-earning Assets
Net Interest Income & Net Interest Margin
($ in millions) |
 NONINTEREST EXPENSE DRIVERS
5
1
–
FTE
=
Average
Full
Time
Equivalent
Employees
2
–
Technology
Spend
=
Data
Processing
and
Equipment
expenses
3
–
Other
Non-Personnel
Spend
=
Total
Noninterest
Expense
less
Personnel
and
Technology
spend
4
–
Legal
&
Professional
Spend
=
Includes
consulting
and
certain
BSA
related
remediation
expenses. |
 IMPROVEMENT IN CREDIT QUALITY INDICATORS
($ IN MILLIONS)
6 |
 STRONG
CAPITAL PROFILE & SUSTAINED EARNINGS
•
Current capital levels are well in excess
of “well-capitalized”
regulatory
benchmarks
–
Existing capital levels are already
above Basel III capital levels
7
Tier 1 Common Equity Ratio
Net Income Available to Common & ROT1CE
Net Income Available
to Common
($ in millions)
Return on Tier 1
Common Equity
Definition of Tier 1 Common Equity:
Tier
1
Common
Equity
(T1CE),
a
non-GAAP
financial
measure,
is
used
by
banking
regulators,
investors
and
analysts
to
assess
and
compare
the
quality
and
composition
of
our
capital
with
the
capital
of
other
financial
services
companies.
Management
uses
Tier
1
common
equity,
along
with
other
capital
measures,
to
assess
and
monitor
our
capital
position.
Tier
1
Common
Equity
is
Tier
1
capital
excluding
qualifying
perpetual
preferred
stock
and
qualifying
trust
preferred
securities. |
 2014
OUTLOOK 8
Asset Growth
Deposits / Funding
Mix
Margin
Noninterest
Income
Noninterest
Expense
Capital
Provision
•
Mid single digit average loan growth
•
High single digit average deposits and other funding
growth
•
Continued modest NIM compression
•
NII down slightly. Mortgage banking income decline offset by
core fee categories growth
•
Flat compared to 2013 with continued focus on efficiency
initiatives
•
Continue to follow stated corporate priorities for capital
deployment
•
Provision will grow based on expected loan growth |