Associated Banc-Corp (ASB) 8-K Associated Reports First Quarter Earnings of $0.30 per share

ASSOCIATED BANC-CORP

1Q 2015 EARNINGS PRESENTATION

APRIL 16, 2015

Exhibit 99.2

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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. 

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.

2015 FIRST QUARTER HIGHLIGHTS

2

Solid Earnings Despite Continued Margin Compression

•

Average loans of $17.8 billion were up $428 million, or 2% from the fourth quarter

—

Total average commercial loans grew $309 million from the fourth

quarter

—

Average mortgage loans grew 4% from the fourth quarter

•

Average deposits of $19.1 billion were up $523 million, or 3% from the fourth quarter

•

Net interest income of $168 million was up $3 million from last year

—

Net interest margin of 2.89% compared to 3.12% in the first quarter 2014

•

Quarterly dividend of $0.10 / common share

•

Repurchased approximately 1.7 million shares of common stock during the first quarter

•

Capital ratios remain strong with a Tier 1 common equity ratio of 9.39%

•

Noninterest income of $80 million was up $10 million compared to

the fourth quarter

—

Insurance commissions increased $9 million from the fourth quarter

•

Noninterest expense of $174 million was up $2 million from the fourth quarter

•

Net income available to common shareholders of $45 million or $0.30 per share

•

Pretax income of $69 million was up $2 million, or 2% from the fourth quarter

•

Return on average Tier 1 Common Equity of 10.22%

Net Interest Income

&

Net Interest Margin

Noninterest Income

&

Expenses

Capital

Balance Sheet

Net Income

&

ROT1CE

LOAN PORTFOLIO –

TREND AND MIX

3

1Q 2015 Average Net Loan Change (+$428 mln)

Loan Mix –

1Q 2015 (Average)

($ in millions)

Home Equity & Installment

Commercial Real Estate

Residential Mortgage

Power & Utilities

Oil & Gas

Mortgage Warehouse

General Commercial Loans

Average Quarterly Loans ($ in billions)

$17.8

+4%

% Chg

+3%

+13%

+1%

$16.2

+5%

$17.4

$15.4

$14.3

Total

Commercial

& Business

Lending

+4%

(3%)

(1%)

COMMERCIAL LINE UTILIZATION TRENDS

4

Line utilization increased in Commercial & Business Lending

Change from 4Q 14

Commercial Real

Estate (including

construction)

-

40 bps

Commercial  &

Business Lending

+200 bps

5

Yield on Interest-earning Assets

Cost of Interest-bearing Liabilities

Net Interest Income & Net Interest Margin

($ in millions)

Net Interest Margin

Total Loan Yield

Total Interest-earning Yield

+8 bps

NET INTEREST INCOME AND MARGIN TRENDS

NONINTEREST INCOME TRENDS

($ IN MILLIONS)

Core

Fee-based 

Revenue

Mortgage Banking (net) Income

Total Noninterest Income

Other

Noninterest

Income

6

1

–

Core

Fee-based

Revenue

=

Trust

service

fees

plus

Service

charges

on

deposit

accounts

plus

Card-based

and

other

nondeposit

fees

plus

Insurance

commissions

plus

Brokerage

and

annuity

commissions.

This

is

a

non-GAAP

measure.

Please

refer

to

the

press

release

tables

for

a

reconciliation

to

noninterest

income.

2

–

Other

Noninterest

Income

=

Total

Noninterest

Income

minus

net

Mortgage

Banking

Income

minus

Core

Fee-based

Revenue.

This

is

a

non-GAAP

measure. 

Please

refer

to

the

press

release

tables

for

a

reconciliation

to

noninterest

income.

1

2

NONINTEREST EXPENSE TRENDS

($ IN MILLIONS)

Technology

Spend

Total Noninterest Expense

Other Non-Personnel Spend

Personnel Spend / FTE   Trend

1

–

Efficiency

ratio

=

Noninterest

expense,

excluding

other

intangible

amortization,

divided

by

sum

of

taxable

equivalent

net

interest

income

plus

noninterest

income,

excluding

investment

securities

gains/losses,

net,

and

asset

gains/losses,

net.

This

is

a

non-GAAP

financial

measure.

Please

refer

to

the

appendix

for

a

reconciliation

of

this

measure.

2

–

FTE

=

Average

Full

Time

Equivalent

Employees

3

–

Technology

Spend

=

Technology

and

Equipment

expenses

4

–

Other

Non-Personnel

Spend

=

Total

Noninterest

Expense

less

Personnel

and

Technology

spend

Efficiency Ratio

69%

68%

69%

70%

69%

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2

3

4

1

OIL AND GAS LENDING UPDATE

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•

Exclusively

focused

on

the

upstream

sector

(‘Exploration

and

Production’

or

‘E&P’

sector).

—

Focused on the small to mid-size independent segment, both public and private companies.

—

Asset-based loans collateralized by a lien on oil and gas reserves.

—

Generally, we are a participant in a syndicated loan.

•

January 2015 stress test indicated adequate specific reserves for this portfolio.

—

NYMEX price strip at end of 1Q 2015 was similar to 4Q 2014.

—

Most of this underlying portfolio is hedged into 2016 at higher than current prices.

—

Loan loss reserves increased for this portfolio during the quarter.

•

New engineering reports will largely be completed in second quarter

—

Will drive borrowing base redetermination and trigger pay-downs if needed.

—

Commodity prices are continuously monitored.

($ in Millions)

4Q 2014

1Q 2015

Balance End of Period (EOP)

$754

$780

Total Reserves

$17

$27

Reserve/EOP Loans

2.26%

3.46%

* Note:  Oil & Gas balances at 1Q 2015 are approximately 4% of total loan portfolio

CREDIT QUALITY INDICATORS

($ IN MILLIONS)

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Potential Problems Loans & PPLs to Total Loans

Nonaccruals & NA / Total Loans

ALL to Nonaccruals and Total Loans

Net Charge Offs & NCOs to Avg Loans

2015 FULL YEAR OUTLOOK

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Balance Sheet

•

High single digit annual average loan growth

•

Maintain Loan/Deposit ratio under 100%

Margin

•

Modest compression throughout the year from the first

quarter

Noninterest

Income

•

Up mid to upper single digits from 2014

Noninterest

Expense

•

Up low single digits from 2014 with a continued focus on

efficiency initiatives

Capital

•

Continue to follow stated corporate priorities for capital

deployment

Provision

•

Expected to increase with loan growth and changes in risk

grade or other indications of credit quality

1

–

Outlook

incorporates

effects

of

Ahmann

&

Martin

Co.

acquisition.

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APPENDIX

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RECONCILIATION AND DEFINITIONS OF

NON-GAAP ITEMS

1Q 2014

2Q 2014

3Q 2014

4Q 2014

1Q 2015

Efficiency Ratio Reconciliation:

Efficiency ratio (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, net

0.22

0.26

1.36

1.05

0.30

Other intangible amortization

(0.42)

(0.41)

(0.40)

(0.32)

(0.32)

Efficiency ratio, fully taxable equivalent (1)

68.86%

68.23%

69.04%

69.66%

68.86%

(1)

Efficiency

ratio

is

defined

by

the

Federal

Reserve

guidance

as

noninterest

expense

divided

by

the

sum

of

net

interest

income

plus

noninterest

income, excluding investment securities gains / losses, net.  Efficiency ratio, fully taxable equivalent, is noninterest expense, excluding other

intangible amortization, divided by the sum of taxable equivalent net interest income plus noninterest income, excluding investment securities

gains / losses, net and asset gains / losses, net.  This efficiency ratio is presented on a taxable equivalent basis, which adjusts net interest

income for the tax-favored status of certain loans and investment securities.  Management believes this measure to be the preferred industry

measurement of net interest income as it enhances the comparability of net interest income arising from taxable and tax-exempt sources and it

excludes certain specific revenue items (such as investment securities gains / losses, net and asset gains / losses, net).

Tier

1

common

equity,

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 (period end and average) is Tier 1 capital excluding

qualifying perpetual preferred stock and qualifying trust preferred securities.  The Corporation adopted the Basel III regulatory standards during

the first quarter of 2015; all prior periods presented are disclosed under Basel I regulatory standards.

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