Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Q4 2019 Earnings Presentation
15 slides from Fulton Financial's earnings presentation, Feb 12, 2020
Slide 1: 2019 and Fourth Quarter Results
2019 AND FOURTH QUARTER RESULTS NASDAQ: FULT Data as of December 31, 2019 unless otherwise noted
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Revised as of February 12, 2020 This presentation may contain forward-looking statements with respect to the Corporation’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward-looking statements can be identifie
Slide 3: 2019 Highlights
2019 HIGHLIGHTS Revised as of February 12, 2020 Net income of $226.3 million, or $1.35 per diluted share. Key Accomplishments Termination of remaining BSA/AML regulatory orders Successful consolidation of affiliate banks into Fulton Bank, N.A. Continuation of organic growth into fast growing u
Slide 4: Quarter Highlights: 4Q19 vs 3Q19
QUARTER HIGHLIGHTS: 4Q19 vs 3Q19 Revised as of February 12, 2020 Net income per diluted share: $0.29 in 4Q19, 22% decrease from 3Q19 Loan Growth: 2% increase in average balances driven by C&I, commercial and residential mortgages and construction. Deposit Growth: 3% increase in average balances, lar
Slide 5: Quarter Highlights: 4Q19 vs 4Q18
QUARTER HIGHLIGHTS: 4Q19 vs 4Q18 Revised as of February 12, 2020 Net income per diluted share: $0.29 in 4Q19, 12% decrease from 4Q18 Loan Growth: 5% increase in average balances with growth in all categories, except for home equity. Deposit Growth: 6% increase in average balances with growth in all
Slide 6: Income Statement Summary – Year to Date
Revised as of February 12, 2020 INCOME STATEMENT SUMMARY – YEAR TO DATE Year Ended Dec 31, 2019 2018 Change (dollars in thousands, except per-share data) Net Interest Income $ 648,389 $ 630,456 $ 17,933 Provision for Credit Losses 32,825 46,907 (14,082) Non-Interest Income 211,427 195,488 15,939 Sec
Slide 7: Income Statement Summary – Quarter to Date
Revised as of February 12, 2020 INCOME STATEMENT SUMMARY – QUARTER TO DATE Change from 4Q19 3Q19 4Q18 (dollars in thousands, except per-share data) Net Interest Income $ 159,270 $ (1,990) $ (3,674) Provision for Credit Losses 20,530 18,360 12,330 Non-Interest Income 55,281 (40) 5,758 Securities Gain
Slide 8: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Revised as of February 12, 2020 Net Interest Income & Net Interest Margin Average Interest-Earning Assets & Yields ($ IN MILLIONS) ($ IN BILLIONS) $20 5.00% $180.0 4.00% 4.00% $15 4.22% 4.35% 4.37% 4.25% 4.07% 3.00% 3.75% $10 $165 $163 $163 $16 $16 $16 $16 $17 2.00% $1
Slide 9: Asset Quality – Annual Comparison
ASSET QUALITY – ANNUAL COMPARISON Revised as of February 12, 2020 ($ IN MILLIONS) Provision for Credit Losses Non-Performing Loans (NPLs) & NPLs to Loans $160 2.00% $135 $140 $141 $50 $47 $132 $120 1.50% $40 $33 $30 $80 1.00% $23 0.90% 0.85% 0.86% 0.84% $20 $40 0.50% $13 $10 $0 0.00% $0 2016 2017 20
Slide 10: Non-Interest Income
NON-INTEREST INCOME(1) Revised as of February 12, 2020 Three months ended December 31, 2019 (percent of total non-interest income) 4Q19 3Q19 Change 7% (in thousands) 9% n Wealth management $ 14,419 $ 13,867 $ 552 22% n Mortgage banking 5,076 6,658 (1,582) n Consumer banking 12,426 13,333 (907) n Com
Slide 11: Non-Interest Expenses
NON-INTEREST EXPENSES Revised as of February 12, 2020 Three months ended December 31, 2019 (percent of total non-interest expense) 4Q19 3Q19 Change (in thousands) 21% n Salaries and benefits $ 76,975 $ 78,211 $ (1,236) n Occupancy 13,080 12,368 712 n Data Processing and software 11,468 11,590 (122)
Slide 12: Profitability & Capital
Revised as of February 12, 2020 PROFITABILITY & CAPITAL ROA(1) ROE and ROE (tangible)(2) 1.40% 16.00% 1.20% 12.84% 1.03% 1.06% 12.09% 1.00% 0.88% 12.00% 10.30% 10.33% 0.88% 9.24% 9.81% 7.69% 7.83% 0.80% 8.00% 0.60% 4.00% 0.40% 0.20% 0.00% 2016 2017 2018 2019 0.00% 2016 2017 2018 2019 ROE ROE (tangib
Slide 13: Revised 2020 Outlook
Revised as of February 12, 2020 REVISED 2020 OUTLOOK • Loans & Deposits: Average annual loan and deposit growth rates in the low to mid single-digits • Net Interest Income: Low single digit growth rate • Net Interest Margin: 3.20% to 3.25% for the full year 2020; assumes a stable yield curve and one
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Revised as of February 12, 2020 Note: The Corporation has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's re
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Revised as of February 12, 2020 Year Ended Dec 31, 2 0 19 2 0 18 2 0 17 2 0 16 (dollars in thousands) Tangible Common Equity to Tangible Assets (TCE Ratio) Shareholders' equity $ 2,342,176 $ 2,247,573 $ 2,229,857 $ 2,121,115 Less: Intangible assets (535,303) (531,556) (531,55