Fulton Financial Corporation · NASDAQ:FULT
Fulton Financial — Shareholder Meeting (April 2009)
65 slides from Fulton Financial's shareholder meeting presentation, Apr 29, 2009
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting April 29, 2009
Slide 2: Safe Harbor statement
Safe Harbor statement The following presentation may contain forward-looking statements with respect to our financial condition, results of operations and business. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995. When words such as “believes”, “expe
Slide 3: Today’s meeting
Today’s meeting Tape recorders and cameras are not permitted in the meeting. The display of placards and signs is prohibited. Please be considerate of others -- silence or turn off your cell phone during the meeting. Any questions and comments should be directed to the chairperson of the meeting dur
Slide 4: Annual Shareholders Meeting
Annual Shareholders Meeting April 29, 2009
Slide 5: Scott Smith, Welcome and Opening Remarks
Scott Smith Chairman and CEO Welcome and Opening Remarks
Slide 6: Today’s agenda
Today’s agenda Business Meeting Proposals: Election of directors Approval of management compensation Ratification of appointment of independent auditor Introductions Results of Voting Conclusion of Business Meeting Management Presentation Questions and Answers
Slide 7: Corporation
FULTON FINANCIAL CORPORATION
Slide 8: FULTON FINANCIAL
FULTON FINANCIAL ‘CORPORATION,
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FULTON FINANCIAL ‘CORPORATION,
Slide 16: Carolyn R. Holleran
Carolyn R. Holleran
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FULTON FINANCIAL ‘CORPORATION,
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‘FULTON FINANCIAL ‘CORPORATION,
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FULTON FINANCIAL CORPORATION
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FULTON FINANCIAL CORPORATION
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Slide 40: Fulton Financial Corporation
‘FULTON FINANCIAL ‘CORPORATION
Slide 41: Annual Shareholders Meeting
Annual Shareholders Meeting April 29, 2009
Slide 42: Scott Smith, Management Presentation
Scott Smith Chairman and CEO Management Presentation
Slide 43: Factors affecting our 2008 performance
Factors affecting our 2008 performance Mark-to-market write-downs in our investment portfolio Goodwill write-off Increased loan losses Continued global and regional economic issues
Slide 44: Reasons for decline
Reasons for decline Unanticipated severity and length of the economic crisis Investors moved away from bank stocks Industry- and sector-oriented challenges
Slide 45: Protecting the balance sheet
Protecting the balance sheet Set aside reserves to cover expected losses Participated in Capital Purchase Program Reduced quarterly cash dividend
Slide 46: Our response to reduce expenses
Our response to reduce expenses Reduced workforce Centralized non-customer contact areas No payments in variable compensation plan Froze merit pay increases for 12 months Reduced retirement plan benefits Limited discretionary spending Lean process improvements – $2 million in savings Deferred openin
Slide 47: Efficiency ratio
Efficiency ratio 57.4 61.8 61.9 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 FFC Peer Top 50
Slide 48: Capital
Capital 5.97% 9.57% 11.46% 14.25% FFC with Cap. Purch. Tangible Common Equity Leverage Capital Tier 1 Risk-Based Capital Total Risk-Based Capital Ratio: Guideline: 3% 5.00% 6.00% 10.00% Regulatory Well Capitalized 5.97% 7.16% 8.57% 11.36% FFC without Cap. Purch.
Slide 49: Capital Purchase Program
Capital Purchase Program Ensure FFC could remain viable Help the U.S. Treasury stabilize the financial system and increase lending Created to provide confidence in our banking system $376.5 million investment in Fulton Financial Corporation will be repaid
Slide 50: Fulton Financial Corporation
Fulton Financial Corporation Family of community banks Locally managed Trusted employees Local decision-making Focused on the present, but also on the future
Slide 51: Superior customer experience
Superior customer experience Care, Listen, Understand and Deliver
Slide 52: Customers’ satisfaction with FFC
Customers’ satisfaction with FFC Q4/2008 Q4/2007 Attribute 8.5 6.8 Meeting the branch manager 8.5 7.7 Bank is involved in the community 8.4 7.8 Competitive interest rates 8.5 7.8 Fees are generally low 8.7 7.9 Offers ability to conduct transactions on Internet 9.2 8.7 Resolves problems quickly 9.0 9
Slide 53: A valuable geographic franchise
A valuable geographic franchise
Slide 54: Serving PA’s strongest markets
Serving PA’s strongest markets* *Source: SNL, Median HH Income, 2008 data Berks, PA York, PA Lehigh, PA Lancaster, PA Northampton, PA Cumberland, PA Delaware, PA Bucks, PA Montgomery, PA Chester, PA # Branches Rank County
Slide 55: FFC affiliates in affluent markets
FFC affiliates in affluent markets* *Source: SNL Financial, 2008 #2 #22 Montgomery, MD #1 #9 Howard, MD #3 #8 Somerset, NJ #2 #7 Morris, NJ #1 #3 Hunterdon, NJ Ranking State National Ranking # Branches County
Slide 56: Loans
Loans 2007 – 2008 loan growth: 7.5% Percentage of loans in Pennsylvania: 54%
Slide 57: Net charge-offs to loans
Net charge-offs to loans 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 FFC Peer Top 50
Slide 58: Residential mortgage and home equity loans
Residential mortgage and home equity loans Total % of Balance Total Pennsylvania 1,383,000 $ 51.9% Maryland 457,000 17.1% New Jersey 459,000 17.2% Virginia 206,000 7.7% Delaware 162,000 6.1% 2,667,000 $ (dollars in thousands)
Slide 59: Mortgage activity
Mortgage activity Oct-08 75,254,000 Nov-08 44,180,000 Dec-08 74,603,000 Jan-09 141,293,000 Feb-09 240,068,000 Mar-09 237,272,000 $ Month Closings Loans to purchase new or existing homes – 30% of mortgage volume $100 million in purchase financing mortgages in first quarter
Slide 60: Mortgage foreclosures
Mortgage foreclosures 19,259 mortgages owned and/or serviced by FFC 132 of these in foreclosure as of March 31, 2009
Slide 61: Where are we today?
Where are we today? Solid fundamentals Experiencing growth in: Loans Deposits Net interest income and other income Mortgage activity Stable net interest margin Improved efficiency
Slide 62: Where are we today?
Where are we today? Strongly capitalized Positive market demographics Loyal customer base Lending to credit-worthy borrowers
Slide 63: Looking to the future
Looking to the future Reducing expenses Managing credit issues Creating a superior customer experience Engaging our employees Positioned for economic rebound
Slide 64: Corporation
FULTON FINANCIAL CORPORATION
Slide 65: Annual Shareholders Meeting
Annual Shareholders Meeting April 29, 2009