Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - ASSOCIATED BANC-CORP | asb3q18991investordeckse.htm |
| 8-K - FORM 8-K - ASSOCIATED BANC-CORP | form8-kcoverpage3q18invest.htm |
Exhibit 99.2 NET INTEREST MARGIN WALKFORWARD AND OUTLOOK Q1 to Q2 Net Interest Margin Walkforward Net Interest Margin Detail 1Q 2018 Reported Net Interest Margin 2.92% + Net loan growth and funding composition (including Bank Mutual) ~0.06% 3.02% + Bank Mutual purchase loan related items 2.92% 9 bps Purchased loan accretion <0.01% 2.79% Prepayments and other adjustments >0.01% + Other net changes, including securities portfolio ~0.02% 2.93% 2Q 2018 Net Interest Margin 3.02% NIM Outlook ▪ Poised to benefit from future Fed rate increases Net interest margin excluding purchased loan accretion, prepayments and interest recoveries ▪ Accretion expected to moderate over time 2.93% Scheduled acquisition related purchase ▪ Bank Mutual prepayments generally expected to loan accretion, net moderate in the longer term, but may be unpredictable Unscheduled acquisition prepayments and other near term adjustments 9 bps ▪ F ull year 2018 net interest margin expected to be Other prepayments and interest recoveries approximately 2.95% 8
2018 OUTLOOK This outlook reflects a stable to improving economy and includes our expectation of additional rate increases in 2018. We may adjust our outlook if, and when, we have more clarity on any one, or more, of these factors. ▪ Flat to 1% quarterly loan growth for ▪ Approximately $825M the remainder of 2018 noninterest expense1 o Continued commercial & business ▪ Effective tax rate: lending growth Balance Sheet Expense o ~22% for 3Q and 4Q 2018 o Continued moderation of CRE and ~20% for full year 2018 Management residential mortgage Management o ▪ Improving year over year NIM trend ▪ Maintain loan to deposit ratio under 100% ▪ Improving year over year fee-based ▪ Continue to follow stated revenues corporate priorities for capital deployment ▪ Approximately $365M - $370M full year noninterest income Capital & ▪ Provision expected to adjust Fee Credit with changes to risk grade, Businesses Management other indications of credit quality, and loan volume 1Including Diversified Insurance Solutions and Anderson Insurance acquisitions, and all costs related to Bank Mutual. 16